Arena & Airport Edmonton's Dysfunctional Under Belly
Nichols is the respected Founder of Gasland Properties, Chair of the Alberta Enterprise Group, former Chair of the Oilers Investors Group and current Chair and Alternative Governor of the Oilers. Cal is the chair, of the Katz group arena project, the influence guy.
Last year, about this time, the city conducted a detailed study on airport lands. Cal resigned his position with the Oilers, to head the AEG campaign to keep the airport open. He did that to avoid conflict with his position for the Katz Group, on the arena project. That campaign failed. City Council voted to close the airport slowly, over 15 years.
Don't think, Cal was pleased with the decision. Votes, public will, and process don't seem to matter to ECCA proponents . May Day! Envision Edmonton cleared to land. Mayor Mandel, safe to say is a big supporter of revitalizing the airport lands.
Me thinks, Cal and Stephen have some issues. If body language, at a recent public event, is a metric, personal relations are strained, at best. I caught both, at the Memorial for Gary McPherson, a few weeks back. When their paths crossed, 2 feet in front of me, there was no contact, no acknowledgement, no interaction. Thought that odd for the two guys leading the parade, on major issues affecting the city. Debris from the City Centre Airport decision smoulders.
Let's look a some other dots.The $100M Katz Group 'proposed' to invest in the Arena. That got the Mayor's attention. Think of the $100M, as 20% of the proposed cost of $500M to build the arena. That's pretty close to qualifying for traditional mortgage financing. Makes the project commercially, as in non publicly, financeable. The Mayor could and did support an arena funded that way. With the city committed to tossing in complimentary infrastructure, not a paltry commitment, there was potential for a viable partnership.
Until, oops,not so fast. The Katz $100M is not for the arena, but for unspecified ancillary development, at some undetermined future date. The Mayor was not happy, with that move. Nor the next one. Just for good measure, the Katz group said they want all the arena revenue. And Northlands, get stuffed. Don't need ya. Throw a partner under the bus, when another comes along. Happens in business.
A couple of caveats to the numbers above. First the $500M cost has not been verified. Consider it a floor not a ceiling. I'll take the 'over' on the over/under, bet any day.
Now the Mayor is more than a little disgruntled with the "Pocklingtonesque", you pay, I get, manoeuvre. He too has a vision, more importantly a plan, a public one. The Quarters is a significant development proposed for the east end of downtown. It's the catalyst to re develop downtown. The Arena District scooped the notion, in a PR coup of sorts to create Revitalize Edmonton with the arena as the focal point.
The Quarters is heavy on high density housing. The Arena District is highly commercial. Synergies are possible. The Arena District could be the play-pen for the Quarters.
They are only a few blocks apart. Walking distance. Walking, is going to be' the mode ' of transport, in the new down town
We are three years into The Quarters proposal. Progress is tedious. A new Downtown Redevelopment Plan has been approved. Re Zoning is completed. A Public Financing Plan will be presented to Council, in August. The urban planning process pretty mundane.
There's private interest in building a hotel on the corner of Jasper and 96h street. Currently that site is a parking lot. Subject to approvals construction could start, next spring. Assuming it is economically prudent to do so. Lots of caveats in development. When it proceeds the hotel will be he first private foray into downtown redevelopment.
"We've asked developers for expressions of interest, on other city own land,in the Quarters, says Kathleen Young , development manager, in the city's special projects office. "Responses have just started to come in," she says.
So the Mayor's plan in the Quarters is inching forward. The Arena District is stalled, momentarily. It's clear the Mayor and Cal Nichols, Katz Group Chairman, have some issues. Certainly a few crucial things they don't agree on. It's a bromide to say; we'll agree to disagree. No solution in that remedy. Theatre of the absurd? Waste of time and public money? Power brokers, broken? No leaders or leadership? Settling scores? What do you think?

