'This is actually 100%': Mayor, council approves funding for downtown arena

CTV Edmonton: Solution found for missing money The missing money for the downtown arena project has been found and council voted Wednesday to approve the deal.

The missing money for the downtown arena has been found, and city councillors voted Wednesday to approve the final funding model for the project, moving forward with it after years of debate and numerous delays.

Councillors voted 10-3 in favour of the arena deal, which will see the city borrow $542 million to pay for the $604 million project, which includes an arena, winter garden, LRT connection, pedestrian corridor and community rink.

"This is actually 100 per cent," said Mayor Stephen Mandel.

A sticking point in recent months had been a missing $100 million for the project.

On Wednesday, the city presented councillors with a solution to the funding shortfall.

Originally, $45 million was to be borrowed from the Municipal Sustainibility Initiative fund, leaving a remaining missing $55 million.

Coun. Amarjeet Sohi amended that motion Wednesday, saying that $45 million should come out of the Community Revitilization Levy (CRL) instead of MSI.

Councillors voted unanimously to eliminate borrowing from MSI to fund the arena project, leaving MSI funding available to fund general infrastructure projects for the city instead.

The project will now be funded through:

Last week, the city received support from the Capital Region Board for an application requesting $25 million from the province's Regional Collaboration Program. That program funds projects that benefit regions as a whole.

The cost of the actual arena is set at $480 million.

The city had already been relying on the CRL to generate $234 million to pay back loans for the project.

It's estimated the levy, generated from property tax revenue from new development around the arena, could raise up to a billion dollars.

The Katz Group, through the Edmonton Arena Corporation, will be contributing an additional $15 million into the project than previously agreed upon to help cover the funding shortfall.

Daryl Katz phoned in from Vancouver after the deal was approved, saying pitching in additional money to fill the funding shortfall was the last step in the process.

"The final hurdle was something we had to cross together ," Katz said.

Katz said he was excited to bring the Oilers to the city's downtown core and excited for downtown revitalization expected to come from the project.

"Today's news is about Edmonton's future and the role the whole project can play in driving investment," Katz said.

"This is a once-in-a-generation opportunity."

Councillors react

Coun. Tony Caterina, Kerry Diotte and Linda Sloan voted against the deal.

Caterina said going forward with the deal would be "extremely irresponsible."

"Until this $30 million and the $25 million from the provincei s approved by the province, we're in the same position," Caterina said.

Diotte said the deal was so bad, it even prompted a local woman to use her own money to commission a survey showing just how many Edmontonians were opposed.

Sloan said the process for the downtown arena project has been "disrespectful" to citizens.

But the majority of councillors were in support of the arena, especially after using MSI funding was removed from the project.

"We are not going to get a better deal," said Coun. Don Iveson. "This is the best deal the city will get now or in the foreseeable future."

"When I sit back and think about the long-term future, I think not doing this would do colossal damage," said Coun. Ben Henderson.

"I think this defines our vision for the city," Sohi said.

Construction 'sooner than later'

The city says it hopes to have shovels in the ground for construction to begin early spring 2014.

The mayor says the hope is "sooner than later."

He adds that the funding sources determined Wednesday are secure and he is confident the $25 million from the Regional Collaboration Program will come through.

"I cannot imagine why the province would not support this."

All partners involved still need to finish design work for the project and set a guaranteed maximum price.

The arena is expected to open in time for the 2016 hockey season.

An archive of the live updates posted by CTV News Edmonton is posted below: