The downtown arena, opening this week, has been an emotional flashpoint in Edmonton for more than a decade.
It has brought forth our greatest anxieties and most ardent desires.
Some look at the arena project and see doom, stagnation and the incompetence and naivete of our local politicians. Others see prosperity, growth and a coldly calculated but visionary bet on the future of our downtown.
Here is the story of Roger’s Place: the vision, the politics, the negotiations, and the hopes and fears about what it will be for Edmonton’s downtown.
If you build it: A businessman on a mission, a city council on the fence
Daryl Katz, left, and Mayor Don Iveson during the grand opening of Rogers Place, in Edmonton September 8, 2016.
In 2008, businessman Daryl Katz became the proud owner of the Edmonton Oilers, acres of empty parking lots, and a monumental vision: to build a downtown arena and surrounding district that would revitalize the heart of the city.
From the Katz Group’s point of view, Edmontonians had become blind to just how bad the downtown was, recalls Patrick LaForge, Oilers president from 2000 to 2015 .
“They drove down 104th Ave and there’s vacant gravel pits block after block after block and derelict buildings in the city centre, the blight that we were just accepting of. Edmonton was developing rapidly, but the city centre was a vacant place.”
But any deal involving a massive demand for public funding was never going to be easy.
The main sticking point? There were more than one.
A great many folks held a principled objection to using public dollars to finance an arena for a billionaire owner and millionaire players. Others felt there was nothing wrong with Rexall Place, that it was a fine building with decades of life in it. They also believed that any talk of something as mundane as a hockey arena revitalizing a downtown was ludicrous. As the noted economist Brad Humphreys, an expert in arena funding, put it in October 2007: “Subsidies for the construction and operation of professional sports facilities cannot be viewed as a viable economic revitalization strategy for our cities.”
But others disagreed, including Mayor Stephen Mandel, who saw a downtown arena district as a generational opportunity. Mandel pushed council to move ahead, yet negotiations stalled.
We were at a place where the finger was on the button … either the city saying no, or us saying no. But the parties were prepared to walk away. — Patrick LaForge
One big issue, says LaForge, is that city council had been fixated on not having any debt and hadn’t done major projects in decades. “Council was completely inexperienced at doing anything bigger. They didn’t really have a role in the Henday, which was a multi-billion dollar installation.”
As well, some councillors were also suspicious of commerce. “Anybody with a suit was to be concerned about. That’s the way I saw it,” LaForge says.
Some city councillors feared they were going to be taken advantage of, so were slow moving, LaForge says. “It was just a feeling that if we don’t read every detail we’re going to get tricked into something that we’re going to live with forever.”
It really didn’t help that Katz was so keen to proceed.
“Daryl was so confident it was the right thing to do, it was almost intimidating — or at the very least frightening and scary — to the guys across the table. Our group was so confident that this the right thing to do, all the homework we had done. So the other side was like, ‘What’s missing here? Is there a pot of gold in the middle of the CN rail lands that we don’t know about?'”
Daryl Katz and his team wait to hold an open discussion of the downtown arena project at city council Edmonton, July 21, 2010.
Negotiations stalled over the final price of the building. In September 2013, the Katz Group visited Seattle to look at moving into a new arena there. It was necessary to do due diligence on the Seattle option but also to make it known in Edmonton that the threat of losing the Oilers was real, LaForge says.
“I think there were a lot of people going, ‘Ah, it will never happen.’ Sort of taking the negotiations way too lightly. And I think they (the Katz Group) were serious … .
“We were at a place where the finger was on the button. Whoever was going to do it, either the city saying no, or us saying no. But the parties were prepared to walk away.”
The trip turned out to be embarrassing to the Katz Group, LaForge says, but it also served as a “huge turning point in the relationship.” With negotiations broken down, both sides were forced to build new bridges that eventually lead to a cooperative approach to building the arena, and then to the final deal.
As LaForge sees it, the arena district will live up to its promise as a catalyst for downtown revitalization. He’s already seeing it in the number of young people who are excited to move downtown. “We’ve got a great river valley, we’ve got this, that and the other thing, and now we’re going to have a downtown, city centre, and Ice District.
“Edmonton is going to have a place where people live and play and stay. It’s going to be a pretty interesting city.”
More than a decade of discussion: The vision was clear, the financials were not
Former mayor Stephen Mandel poses for a photo outside Rogers Place on Sept. 2, 2016.
Almost a decade ago, then-mayor Stephen Mandel could see how a new downtown arena would be a game-changer for Edmonton.
It was an answer to vacant downtown land. A kick-starter to spur development in the neglected core. An insurance policy to keep the Oilers playing hockey in Edmonton.
But it definitely wasn’t easy.
“It was tough negotiations,” Mandel recalls. “I remember a lot of frustration.”
The idea of finding a new home for the Edmonton Oilers had been floating around since at least 2005, but the city became directly involved in 2007 after a Northlands report estimated Rexall renovations could cost $250 million.
That’s when Mandel appointed a committee to ponder the future of aging Rexall Place — and the long process behind the deal officially began.
Chaired by businessman Lyle Best, the committee was charged with considering whether Edmonton should upgrade the existing facility or build from scratch. At least two members — and Mandel himself — were already leaning toward creating something new.
“I said, ‘Well, if we’re going to spend that much money, maybe we should look at other options,’ ” says Mandel, who worried a retrofitted Rexall would still have shortcomings.
“There was a change in attitude, a can-do attitude in the city that was going on.”
It was evident almost from the start that such a structure would require public money, so an agreement was needed with Daryl Katz, who bought the Oilers in 2008 with a new arena on his agenda.
Mandel, along with Katz and other city officials, wanted the project to be a catalyst for redevelopment of Edmonton’s neglected core.
“Our downtown was the forgotten part of the city. We would spend $200 million on an overpass in the suburbs and no one would blink. We spent 20 bucks downtown and people would get mad.”
It was never in doubt in my mind that if we couldn’t come up with a deal, the team would be gone. — Stephen Mandel
Former city manager Simon Farbrother, who started his job in 2010, recalls being asked in the job interview about his views on how to handle the deal.
It was a fair warning of what was to come.
Farbrother was soon up to his ears in the project, spending thousands of hours as head of the administration team that was trying to reach a deal with the Katz Group.
“This was a very complex jigsaw puzzle,” he says, adding “when the puzzle was being built, nobody knew what the picture would be.”
By 2011, some basic elements had been settled: the Oilers would agree to stay in Edmonton and pay the arena operating expenses of the city-owned facility if they received the revenue.
But key questions remained, mainly involving construction costs and who would fund them. While the arrangement would include public money, the city was adamant that property taxes not rise to pay for it.
“There were lots of times when this (might) not have happened, and not because of one side being stupid,” Farbrother says. “This is a big decision, a big investment.”
Mandel, who retired as mayor in 2013, describes the years of negotiations as “long, arduous, difficult.” But he genuinely feared that the alternative would be worse.
“It was never in doubt in my mind that if we couldn’t come up with a deal, the team would be gone,” he says.
It was October 2011, at a meeting in New York with NHL commissioner Gary Bettman, when the framework of the eventual deal was figured out.
Bettman is praised by both Mandel and Farbrother for his contribution to the eventual pact.
“It had to work for the owner, but (Bettman) also knew it had to work for the city,” Farbrother explains. “Gary doesn’t like working with divorces. He’s got a lot of other things to do. … He knew if the model doesn’t work, then it’s coming back to him.”
But there were bumps along the path to the altar. Katz drew public ire for a September 2012 visit to Seattle that was seen as a thinly veiled threat to move the Oilers. He later apologized to fans.
A few weeks later, city council voted unanimously to shut down negotiations after Katz demanded a $6-million annual operating subsidy, and then wouldn’t attend a council meeting to explain himself.
Patricia Misutka, chief of staff in Mandel’s mayoral office, calls this a defining moment for city council. “(Council) put a little cement in their backbone. Everything was really clear at that point.”
A few days later, she accompanied Mandel to a half-dozen engagements. And that’s where she saw where the public stood.
“Literally everywhere we went that weekend, people said ‘Good for you, I really admire what you and council did — but we are going to get a new arena, right?’ ”
The two sides started talking again in December. A deal was hashed out in early 2013 and finalized in the spring, pushed in part by a desire to complete the work before the October civic election.
Despite the intensity and complexity of the negotiations, top city officials don’t begrudge the Katz Group’s bargaining style.
Rogers Place: The making of the deal
Photos from the Edmonton Journal archives look back at some of the images related to the years of debate, negotiation and seeking public support for the downtown arena project.
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The company was making complex cost and revenue projections for coming decades, based on details as small as expected concession spending per seat.
“I think it took longer to negotiate it than it did to build it … but that’s not uncommon with projects of this complexity,” Mayor Don Iveson says.
“I think it has exceeded most people’s expectations, certainly mine, in terms of the quality of the building itself, which is extraordinary … but also what we see taking shape around it.”
So far, the community revitalization levy (CRL), a property tax on the growth in downtown real estate values helping pay for the arena, has brought the city about $9 million, including $1.9 million from education taxes that normally go to the province.
The CRL is intended to cover $316 million worth of city-centre infrastructure, including Rogers Place, storm sewers and a park. The latest estimate, delivered in November 2015, was that it will collect a total of $984 million over 20 years.
Mandel still fumes that promises he was given for provincial funding were never honoured.
“What are we, chopped liver? … I’m incredibly disappointed in the province. I’m frustrated. We were treated as a second-class citizen.”
Farbrother also points to the $5-billion worth of office buildings, condos and other developments — proposed or under construction — that the arena has spurred in a once-stagnant downtown core.
That includes the 66-storey Stantec Tower, which he says helped ensure the big engineering firm keeps its headquarters in Edmonton.
“At the end of the day, anybody associated with (the arena district) probably feels pretty good about it, irrespective of who they actually represent,” Farbrother says.
“It’s probably one of the biggest projects in North America. For a little town in Canada, that’s pretty good.”
Plight of the poor: The arena moves in, the homeless are moved along
A man makes his way along 101 Street in the shadow of Rogers Place on Sept. 7, 2016.
To say that the arena is on the doorstep of some of Edmonton’s poorest communities is hardly an overstatement.
Except that homeless people don’t have doors.
Rogers Place was built on parking lots and other inner-city spaces where street people had been comfortable hanging out. Across the road is Boyle Street Community Services, Edmonton’s busiest drop-in centre which has assisted about 9,500 people annually at the site since 1995.
Construction has been pushing these people out of the city core, with outreach workers now seeing them more frequently in such areas as Jasper Place and Beverly.
Rylan Kafara is a member of the arena’s community advisory committee, which was established as part of the arena’s conditions of approval.
“Ever since the planning stage of the arena, there has been a lot of concern from homeless community members about their safety and whether they will be displaced,” says Kafara, who runs an inner-city recreation and wellness program.
“They understand that the Edmonton Oilers are integral to the community identity of Edmonton. It’s just another challenge for them.”
He says the advisory committee, made up of representatives from 16 social agencies, community leagues, business revitalization zones and labour groups, has focused mainly on providing details about events, policing, parking and job opportunities. It was meeting once every three months, but the frequency picked up as the opening drew near.
Kafara says the meetings were a valuable source of information for the community groups, but he notes the exchange of information is not exactly a two-way street.
“You can suggest things or bring up issues, but it’s not like a binding community benefits agreement, with the city and community working in partnership.”
In the waning days of August, the committee’s mandate and lack of effectiveness was hotly debated at city hall after social agencies expressed frustration that Edmonton homeless and low-income residents were getting a raw deal.
City councillors were told that the committee needs to tackle issues that are bigger than parking, noise and litter — things like “living wage” jobs at the arena, help with rising rents and affordable housing.
Jay Scherer, an associate professor of physical education and recreation at the University of Alberta, is studying the human impact of the downtown entertainment district. He says most cities putting up major sports and entertainment centres are required to deal with these important human issues.
Scherer doesn’t yet know if the project will lead to substantial population displacement, but says he has heard stories about rents and property values rising in surrounding neighbourhoods.
At city hall, Mayor Don Iveson maintains that the arena construction didn’t take away any affordable housing spaces, and he says that issues like pay rates and employment don’t fall under the umbrella of the arena development.
“The needs of vulnerable Edmontonians go far beyond the immediate environment of the arena,” says Iveson, noting there are city-wide committees working to end poverty and homelessness. “They existed before the arena and need our continued focus.”
Build it and they’ll come. But will they hang out in the neighbourhood for drinks afterwards?
Unveiling of Rogers Place signature art by Alex Janvier in Ford Hall as opening events continue in Edmonton Thursday, September 8, 2016.
The arena and surrounding district bills itself as the new “era of entertainment” in Edmonton, and that doesn’t just mean hockey. Show business is big business, and things kick off Sept. 16 with country superstar Keith Urban, followed by an array of sold-out concerts — Dolly Parton, Dixie Chicks and Drake, among others.
But should Edmonton’s arts community expect to benefit as well? Artists, arts groups and politicians sure hope so.
There are not any local musicians who could sell out the arena’s 18,000-plus seats, but the Oilers Entertainment Group hopes to use smaller acts to complement “internal bookings and events in Ford Hall and Ice District,” says spokesperson Tim Shipton.
So far, the Edmonton Chamber of Commerce has booked its annual ball in Ford Hall — originally (and better) known as the Winter Garden — on Jan. 27. Canadian country star Johnny Reid is the first confirmed act.
The City of Edmonton can also use the arena for as many as 28 days per year.
Coun. Scott McKeen would like to see musicians or visual artists featured in Ford Hall or the pedestrian walkway to the LRT station.
“With tens of thousands of people coming to the arena, it would be wonderful if the Art Gallery of Alberta would be able to put on something that piques the interest of visitors,” says McKeen.
“The best thing about the new arena is that people will come downtown who don’t usually come downtown and they can be exposed to other amenities, like flagship art institutions.”
The OEG isn’t just looking at opportunities within the sloped walls of the arena or in the vicinity of Ice District. Says Shipton: “We’re keen on partnering with local venues to help grow the live entertainment scene in Edmonton.”
Events like PBR, a showcase of professional bull riders with a 10-day western lifestyle festival, “will be ideal to work with smaller venues and acts across the city,” he says.
Chris Wynters, executive director of the non-profit organization Alberta Music, is a fan of that line of thinking.
Instead of bulls, he’s got his sights set on baubles — the Junos, to be precise.
It’s only a matter of time, he predicts, until Rogers Place hosts the annual music awards show which is accompanied by three days of gigs, songwriters’ circles, and autograph sessions in a range of smaller venues. When Calgary hosted in 2016, 54 of its 150 showcasing artists hailed from Alberta.
“I’m a big fan of where this building is and bringing people downtown,” he says. “We just need to make sure those people walking out of the building know there’s stuff going on.”
He hopes the OEG can use some of its powerful marketing tools to promote downtown events and venues. “I think if we can get OEG to play along and we can advertise on the screens in the building — then we might really have something. That’s a no-brainer to me.”
And there’s lots to promote. Outside of Ice District, the live music scene downtown has been growing.
There’s The Needle on Jasper Avenue, Denizen Hall on 103 Street, and Stage 104 on 104 Street. Even the new casino, Grand Villa Edmonton, will feature country artists, duelling pianists, DJs and cover bands in its Match Eatery and Public House, as well as pianists and DJs in its restaurant, Atlas Steak + Fish.
One block south of Rogers Place is The Chvrch of John, an art bar owned by Kristoffer Harvey. The venue, which opened in the basement of the Grand Hotel in early 2016, focuses on food, drink, DJs and musicians but it also hosts comedians, visual artists and burlesque performers.
The Chvrch Of John operations partner Kristoffer Harvey stands outside the bar at 10260 103 St. on Aug. 25, 2016.
Harvey knows the arena will put a lot more people on his sidewalk, and he’s determined to lure them through his doors.
“We’re going to build a little mini-stage out front and we’re going to book buskers so they can make money before and after games, and we can advertise what we do,” he says. “We hope to use the traction of the arena to get people who wouldn’t normally come to these venues.”
The Edmonton Symphony Orchestra also hopes to get a chance to showcase its talents, either inside Rogers Place or in the adjacent plaza, scheduled to be completed by 2018 or 2019. Executive director Annemarie Petrov has met with arena and city staff and she’s confident of their support.
“An orchestra is a very versatile instrument and it can play in a lot of different places,” she says. “Not only can it play in its own right, it can accompany another form of entertainment — whether it’s a singer, a dancer, a film.”
Architect Shafraaz Kaba believes it might take direct involvement from the City of Edmonton to ensure local artists — or even patrons — benefit from the arena and Ice District.
“We need to give people a reason to rally behind it and not get frustrated” about potential inconveniences like parking, he says. “If the city steps up and takes ownership of the programming and makes it a festival-, arts- and sports- and culture-centred arena, then maybe that can show our ‘Edmontoness.’ ”
Photos: Opening day celebrations at Rogers Place
Rogers Place, the hotly debated and often controversial downtown arena, officially opened on Thursday. The day started with a special celebration commemorating the signature artwork by Alex Janvier in Ford Hall and ended with a gala that included speeches, performers and special guests
Guests listen to speeches during the grand opening of Rogers Place, in Edmonton September 8, 2016. </spa