In the Roman era, the Colosseum was the place to be. The iconic amphitheatre seated some 50,000 spectators who took in everything from gladiatorial contests to dramas based on classical mythology. It’s in the centre of Rome and was a draw for much of Europe.
Today, the Colosseum concept has evolved in the form of high-tech, state-of-the-art sports and entertainment complexes. In Canada, the Air Canada Centre and the Bell Centre are two facilities that don’t just elevate Toronto’s and Montreal’s status as modern, contemporary cities, they also give Canada a certain cachet in the sports and entertainment world. The facilities are regional draws and major attractions.
The proposed downtown Edmonton arena would also have that effect, not just for Edmonton or the capital region, but certainly for Alberta and even Western Canada. It is that belief that drove the Capital Region Board to throw its support behind Edmonton in a bid to get more provincial cash for the arena. So, with the CRB’s blessing, Edmonton is going after $25 million, which will come out of the province’s regional collaboration program.
At first blush, it appears that the CRB did the right thing. However, the argument that needs to be made is the entire arena process has been fundamentally flawed from the start, and taxpayers are ultimately paying so that a billionaire will prosper well into the future.
Premier Alison Redford has been steadfast in her refusal to make up the $55 million shortfall in the $480 million project, and good for her – sort of. What has been absolutely lost in this saga is that if Daryl Katz doesn’t step up to the plate to fund the shortfall, it will be taxpayers who will foot the bill, and that’s just not right. The regional collaboration grant, made possible under the Municipal Sustainability Initiative, and other municipal infrastructure grants and programs are still taxpayer dollars, and those dollars are subsidizing a billionaire.
The so-called “arena deal” stinks. Edmonton city council is dragging all Alberta taxpayers into a rotten business deal. It’s absolutely clear how the deal will benefit Katz. He ponies up $146.5 million for the arena and a winter garden ($6.5 million is cash and the remainder in annual rent over 35 years), he pays for all operating and maintenance costs, and he retains all operating revenues, parking revenues and naming rights. How does the taxpayer benefit? Well, he gets to go to an Oilers game – at a high price – pays $30 for parking and spends $20 on a beer and hotdog. Katz gets to pocket the high-margin profits.
The arena deal is too far along now for it to die. Like it or not, taxpayers are destined to be lifelong paying partners of one Daryl Katz.
