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New arena on the horizon for Oilers by The Sports Network
Edmonton, AB (Sports Network) – The Oilers and the city of Edmonton have agreed to the framework for the building of a new downtown arena.
According to the team, the Edmonton City Council has approved an agreement with Oilers ownership, the Katz Group, that will keep the team in the Alberta city for 35 years.
“From the beginning we have approached this project with the twin objectives of creating a major engine to drive the revitalization of downtown and of creating a model for the long term sustainability of the Oilers in Edmonton,” said Katz Group executive vice president Bob Black. “City Council’s decision is a watershed moment that puts us on a path towards achieving these objectives. There remains a lot of hard work ahead to conclude a definitive agreement and we are anxious to do so as soon as possible.”
The preliminary agreement conditions set the price of the building at $450 million with $125 million coming from the city, $100 million from the Katz Group and $125 million from a user-paid facility fee. The provincial and federal governments will be asked to put in the remaining $100 million.
“We believe this framework is fair for both sides and reflects what we heard from Edmontonians,” said city manager Simon Farbrother. “This framework allows us to move forward with this project and ensures that we will continue to align our efforts with what the community has told us are Edmonton’s priorities for this important project.”
The Katz Group will operate the building, but the city will own the structure and the surrounding land.
After beginning life in the World Hockey Association in 1972, the Oilers joined the NHL as part of the WHA merger in 1979. They’ve played in the building currently known as Rexall Place since 1974.
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