Irishjim Posted September 18, 2012 Share Posted September 18, 2012 Telling The Edmonton Journal he fears delays and rising costs could price the proposed $450-million downtown arena project “out of this market,” Oilers owner Daryl Katz made an impassioned pitch Monday to close this deal with Edmonton city council — and soon.In an hour-long telephone interview with the Journal arranged at his request, Katz termed the project “far too important to fail,” a spectre that arose last week as a result of a report to city council that pegged the new cost of the arena at $475 million and revealed other requests from the Katz Group, including a $6-million annual operating subsidy to run the facility.“I’m focused on making this deal work — God knows, I’ve spent enough money,” Katz said. “My wife thinks I’m nuts, OK?“If this deal doesn’t work, what can I say, obviously all bets are off and we’ll have to figure out what comes next. And I don’t know what that will be.”Katz said he chose to speak up about stalled negotiations because, “there’s a lot at stake and people in Edmonton need to understand the full picture.”The picture became more cloudy last week, when the subsidy issue, in particular, rankled and blindsided members of city council.In October 2011, the Katz Group agreed to make mortgage payments of $5.5 million a year for 35 years to cover Katz’s $100-million share of the arena’s construction cost.Katz also agreed to pay roughly $10 million a year in operating and maintenance costs. To many, that $6-million ‘offset’ resembles a clawback of the $100 million he originally promised.“I’d like to clear the air on this issue of an operating subsidy,” Katz said. “Because what has come out of the city over the last several days, to be frank, is unfair, untrue and totally counterproductive if what we’re trying to do is secure the Oilers future in Edmonton and have us participate in the development of a new arena and sports entertainment district.”Katz reinforced the need for a public-private collaboration to build a new arena, one Edmonton badly needs, one the city would have to fund entirely itself if he and the Oilers were not prepared to invest in the project.Without the Oilers, Katz said, the city “would have to pay all the capital and operating costs, just like Quebec City will, just like Kansas City, just like Phoenix, just like Seattle, just like Hamilton, and just like other cities that would all like an NHL or an NBA team to subsidize their arenas.“So, you see, in our view it is the team that acts as a subsidy for a city’s arena, which is effectively infrastructure, not the other way around.”In Katz’s view, the Oilers franchise, for which he paid $200 million, makes possible a major-league arena which, in turn, will drive downtown revitalization, expressed in “billions of new investment downtown,” to be harvested by the proposed community revitalization levy.Conservative estimates suggest this tax on new development could generate between $1.2 billion and $1.6 billion for the city. Terming the CRL a “gold mine for the city,” Katz said it might produce more than $2 billion in revenue, and could be used as a source for the operating subsidy.The current funding model for the arena earmarks $45 million from the CRL to help cover the $125 million the city has pledged as its contribution to arena construction costs.Katz dismissed suggestions he is changing the deal in midstream, making new demands to try to sabotage his own negotiations as a pretext to move the team.“That worry has been expressed,” Coun. Don Iveson told the Journal last week. “That’s been the leverage behind this all the way along. If that’s their intent, it would be handy if they could come out and say it.”Stressing that he stepped up four years ago when the Edmonton Investors Group was fracturing, purchased the Oilers and pledged to contribute to a new downtown arena, Katz flatly rejected the notion he is scuttling his own deal.“Oh, so he’s questioning my track record and good faith?” Katz said of Iveson’s comments. “If you want to judge the quality of my commitment, look at what we said we’d do with the hockey team four years ago and what we’ve done since ... and we’re just getting started.”Katz underscored he had spent $200 million on the franchise, “funded operating losses since (and) put $70 million into acquiring land.“Nobody can question my good faith or my commitment.”Despite the apparent disconnect between the Katz Group and city council, Katz said: “I think we are close to realizing our vision with the city and I think if we work together and are reasonable, we can do so.“We have to move quickly, time is our enemy. The longer it takes, the more it will cost, and cost (increases) will make the project prohibitive for all of us.“It’s crunch time.” Quote Link to comment Share on other sites More sharing options...
radoran Posted September 18, 2012 Share Posted September 18, 2012 Quebec City will, just like Kansas City, just like Phoenix, just like Seattle, just like HamiltonGood luck with that.The weird thing is that Phoenix HAS NBA and NHL and MLB and NFL franchises.This guy is on serious crack if he thinks he'll do better off with the Kansas City Oilers than in Edmonton. A better initial deal? Maybe. Probably, in fact. A better long term result for his franchise? Hell no.Why do these billionaire owners feel they are entitled to taxpayer money to support their private business venture?WWJGD? Quote Link to comment Share on other sites More sharing options...
jammer2 Posted September 18, 2012 Share Posted September 18, 2012 @radoran Agree 100% rad...this greedy bastard is just trying to milk the system, and using the city of Edmonton's undying passion for the sport as leverage. If he wants a new arena...then he should have factored that cost in when he bought the team. At that point, if you can't afford one, you back out...NO WAY will Betteman allow the NHL to pull out of that location. They will force Katz to sell. The new arena *would* revitalize downtown...there is creative ways to get it done...like no property tax bills for 100 years or something to that effect...taking into account how much a new arena would create spin off business etc...that way, the team saves money and the city, in a way is contribuitng...BUT a 6 million dollar annual subsidy to pay for daily operations of the arena...WOW....what makes Katz and the Oilers any different than Chyrsler's or Ford..if they came to Windsor's council and asked for operating expenses, they would get laughed out of the council meeting, the same should happen here...the gull...the audicity of the whole thing is simply mind boggling! Quote Link to comment Share on other sites More sharing options...
jammer2 Posted September 25, 2012 Share Posted September 25, 2012 @radoran Ha ha....you're gonna love this one rad. Katz, Lowe and his COO Laforge "toured" Seattle today. Basically a bunch of posturing, trying to put pressure on Edmonton's city council to bow to his demands. What a friggin tool this guy is!!!http://www.tsn.ca/nhl/story/?id=406031 Quote Link to comment Share on other sites More sharing options...
hf101 Posted September 25, 2012 Share Posted September 25, 2012 @jammer2You know, all laughs aside.....I remember very well one specific owner named Green who toured Dallas, and changed the name of the North Stars to the Stars, prior moving them to Texas.I'd be concerned if I was an Oiler fan. Quote Link to comment Share on other sites More sharing options...
jammer2 Posted September 25, 2012 Share Posted September 25, 2012 @hf101 That's exactly what Katz wants the Edmonton city council and fans to think. He's putting pressure on them through this tour. Katz has to get the move approved by the board of Govener's.....I don't see them allowing him to do it. He'll end up putting up more money for his new arena, he just wants to lessen the blow to his pocket by forcing the council to up some more money. This is a scare tatic IMHO. Quote Link to comment Share on other sites More sharing options...
hf101 Posted September 25, 2012 Share Posted September 25, 2012 This is a scare tatic IMHO.And I remember many of us in Minnesota never thought the North Stars would ever be moved to Dallas. We all thought Green was bluffing as well as he unsuccessfully tried to get more money out of the State to build a new "Met Center" Quote Link to comment Share on other sites More sharing options...
DinahMoeHumm Posted September 25, 2012 Share Posted September 25, 2012 And I remember many of us in Minnesota never thought the North Stars would ever be moved to Dallas. We all thought Green was bluffing as well as he unsuccessfully tried to get more money out of the State to build a new "Met Center"Like @jammer2 I also think this is probably a scare tactic. However, what you're saying is absolutely true... and *that* creates the doubt. Is he bluffing? Probably. Is there a chance he's not and he would actually try to pull off a move? Most certainly. However, I also agree that getting the Board of Governors to approve this move doesn't seem likely. It's a shame these things end up turning into a fight more often than not. The arena they've proposed is one incredible piece of work!I think I posted this in another thread, but in case you haven't seen it, here's the link again: http://www.edmonton.ca/city_government/projects_redevelopment/downtown-arena.aspx Quote Link to comment Share on other sites More sharing options...
radoran Posted September 25, 2012 Share Posted September 25, 2012 And I remember many of us in Minnesota never thought the North Stars would ever be moved to Dallas. We all thought Green was bluffing as well as he unsuccessfully tried to get more money out of the State to build a new "Met Center"He has to get approval from the Board of Governors to move the team. Moving a struggling franchise - as the "small market" North Stars were - to a major American Metro during the Southern Expansion is one thing.The NHL cannot allow Edmonton to be 1) without hockey and 2) without the Oilers.The only way the team moves, IMO, is doing a Modell/Browns-type move leaving the name and the franchise records and potentially picking up another relocating franchise (say... Phoenix) in Seattle.If I was buying the Coyotes and wound up with the Oilers, I think I'd be happy. Quote Link to comment Share on other sites More sharing options...
Irishjim Posted September 26, 2012 Author Share Posted September 26, 2012 @jammer2You know, all laughs aside.....I remember very well one specific owner named Green who toured Dallas, and changed the name of the North Stars to the Stars, prior moving them to Texas.I'd be concerned if I was an Oiler fan.i f i was an oiler fan i would be as well. cause there lease agreement ends just when that spanking new area in seattle will be ready Quote Link to comment Share on other sites More sharing options...
jammer2 Posted September 26, 2012 Share Posted September 26, 2012 @Irishjim Wow, really nice leverage for Katz there!! Quote Link to comment Share on other sites More sharing options...
hf101 Posted September 26, 2012 Share Posted September 26, 2012 @radoran@DinahMoeHummTrue, while it does seem unlikely that the Board of Governors would approve a move. Katz could decide to sell the Oilers, keeping them in Edmonton and taking up an expansion team in Seatle. 1 Quote Link to comment Share on other sites More sharing options...
Podein25 Posted September 26, 2012 Share Posted September 26, 2012 @hf101Yeah exactly. The Oilers aren't going anywhere. 1 Quote Link to comment Share on other sites More sharing options...
radoran Posted September 26, 2012 Share Posted September 26, 2012 There will be a team in Hamilton before there is no team in Edmonton. Quote Link to comment Share on other sites More sharing options...
jammer2 Posted September 30, 2012 Share Posted September 30, 2012 AND....the latest rounds of shananigans from Mr.Recluse. http://www.tsn.ca/nhl/story/?id=406373 Quote Link to comment Share on other sites More sharing options...
hf101 Posted September 30, 2012 Share Posted September 30, 2012 @jammer2"I took for granted your support and your love for the Oilers," said Daryl Katz in the open letter.In other words............Now that I've got your attention give your Oilers the money to build the new areana. Quote Link to comment Share on other sites More sharing options...
jammer2 Posted October 1, 2012 Share Posted October 1, 2012 @hf101 Yep, translation : Give me your MON-EEEEYYYY!!! Quote Link to comment Share on other sites More sharing options...
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