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Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Levy extension debate ongoing as Edmonton council considers motions on OEG deal

City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG).
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The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core.
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Two motions on the table
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The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL.
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If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision.
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A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments.
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OEG projects at the centre of dispute
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The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package.
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While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community.
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Supporters urge action
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Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away.
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Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown.
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'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.'

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Edmonton city council extends downtown revitalization levy to 2044
Edmonton city council extends downtown revitalization levy to 2044

CBC

time9 hours ago

  • CBC

Edmonton city council extends downtown revitalization levy to 2044

Social Sharing Edmonton city council voted Friday evening to extend its divisive downtown revitalization levy another decade, following a two-day public hearing into the matter. The 9-4 vote came after council heard from dozens of citizens speaking for and against the levy. Those who signed up to speak represented various parts of the downtown community, including citizens, non-profits, business owners and post-secondary institutions. "Every North American downtown, coming out of COVID, has struggled," Mayor Amarjeet Sohi said during Friday's hearing, before the vote. "This council has shown a very strong commitment to bring more activity, more life into downtown, and more vibrancy into downtown." The package of proposed projects in the Capital City Downtown Community Revitalization Levy (CRL), which includes a partnership opportunity with the Alberta government and OEG Sports and Entertainment, which owns the Edmonton Oilers, "allows us to build on that success," Sohi said. "The time is to act, and to act now," he said. "These kinds of opportunities don't come our way all the time." Friday's vote means the downtown CRL, established in 2015, will be in place until 2044. It was set to expire in 2034. The levy lets the municipality borrow money from the provincial government against future property tax revenues to help pay for development in the downtown area. The city has two other CRLs to finance development in other areas. Downtown has seen $4.7 billion in new development since the CRL started, the city said in a news release Friday evening. With the extension, the release said, the city will consider spending money from the CRL on seven new or updated projects, such as expanding the Winspear Centre, improving transit infrastructure and remediating brownfield. But there's conflict around the downtown CRL and its use of taxpayer dollars to fund private projects — namely, a proposed event park beside Rogers Place, the Oilers' home stadium. Nita Jalkanen, who lives in the Parkdale neighbourhood, is among the Edmontonians who spoke against the CRL extension, suggesting taxpayers have been pouring money into the pockets of Daryl Katz, OEG's founder and chairman. "It's our money that's being spent like water," Jalkanen said. The park would be one of three major projects wrapped into an agreement between the city, provincial government and OEG. In March, the parties announced they had signed a memorandum of understanding, signalling a willingness to move forward with the project while negotiations continue to finalize the deal. Details of the MOU suggested the event park would cost $250 million, about one-third of which — $84 million — would be covered by OEG. The MOU also includes money to build 2,500 new housing units in the Village at Ice District, just north of Rogers Place, and demolish the Coliseum — the Oilers' former arena — and improve the Exhibition Lands area. Before Friday's vote, Ward pihêsiwin Coun. Tim Cartmell expressed that he finds the notion that OEG unduly benefits from the levy to be misplaced. "Everything we do, in terms of the CRL, benefits a private landowner in some way, in some form. So it's really a matter of scale, and we happen to have one landowner who's a public figure," said Cartmell, who is also a mayoral candidate in the upcoming civic election. Ward Anirniq Coun. Erin Rutherford, one of four council members who opposed, voted based on whether she felt locking in CRL funding for another 10 years was right, she told council Friday. "Our theory of change is fallible," Rutherford said. She felt the downtown CRL doesn't align with city initiatives to keep businesses from leaving, nor that it addresses social disorder, she said. "There's still not going to be vibrancy," she said, noting that residents from the McCauley neighbourhood and Edmonton's Chinatown have raised concerns to council. "Not everybody is seeing the benefit of this," she said.

Levy extension debate ongoing as Edmonton council considers motions on OEG deal
Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Calgary Herald

timea day ago

  • Calgary Herald

Levy extension debate ongoing as Edmonton council considers motions on OEG deal

City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG). Article content The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core. Article content Article content Article content Two motions on the table Article content Article content The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL. Article content If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision. Article content A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments. Article content OEG projects at the centre of dispute Article content The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package. Article content Article content While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community. Article content Article content Supporters urge action Article content Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away. Article content Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown. Article content 'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.'

Levy extension debate ongoing as Edmonton council considers motions on OEG deal
Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Edmonton Journal

timea day ago

  • Edmonton Journal

Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Article content City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG). The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core. Article content Two motions on the table The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL. If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision. A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments. OEG projects at the centre of dispute The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package. Article content While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community. Supporters urge action Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away. Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown. 'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.' Article content Similar support came from Beryl Bacchus, executive director of iHuman Youth Society, who highlighted the impact spaces like the Winspear Centre have on at-risk youth. 'It is more than a concert hall. It's a gateway to connection, culture and understanding,' she said. 'Being a friendly neighbour means more than just sharing space. It means opening doors for young people from marginalized, computed communities.' Viet Nguyen, founder of Boodang Music Canada, said Downtown Edmonton's lack of flexible outdoor event spaces is frustrating 'not just for us, but for the hotels, restaurants and shops that depend on those thousands of visitors.' 'On a festival weekend, we bring up to 7,000 to 10,000 people a day. That kind of foot traffic is rare in most Canadian cities outside of Toronto or Vancouver, and it makes a tangible difference,' he told council. 'So saying no to investment isn't a strategy.' Article content Cheryll Watson, chairwoman of the Downtown Revitalization Coalition, echoed that sentiment, urging council to rise above ideology. 'Unfortunately, the majority of the speakers opposed to this decision have not had the benefit of being educated about how this proven investment mechanism works,' she said. 'What we need from council right now is not ideology, but sound investment judgment.' What the CRL has funded so far Created in 2015, the CRL allows the city to borrow against projected increases in property taxes in a defined area to help fund strategic redevelopment. The current CRL is set to expire in 2034. The proposed 10-year extension would push that to 2044, allowing the city to finance new 'catalyst' projects and finish existing ones. City administration said the CRL has already helped drive more than $4.7 billion in private investment Downtown, including three new office towers and thousands of residential units. But with construction costs rising and post-pandemic recovery stalling, officials argue additional investment is needed to maintain momentum. Article content However, councillors including Andrew Knack and Michael Janz have previously pushed back against the inclusion of the OEG projects, questioning whether public funds should be used to support private developments linked to a billion-dollar company. That's the heart of the current motion — to determine whether the province's support is conditional on the full slate of projects or, if some, like the OEG developments, could be removed without sinking the deal. Previously, administration cautioned that changing the project list could restart the entire provincial approval process, potentially delaying implementation and putting the extension at risk. Kalen Anderson of BILD Edmonton Metro told council on Thursday that the deal 'is a package. Picking and choosing pieces could cost us the whole thing.' Awaiting further clarification The province has already amended regulations to extend the CRL through 2044 and updated its guidelines to allow for the inclusion of the new projects. However, no formal statement has been made on whether all the projects listed in Schedule A must remain intact. Article content Latest National Stories

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