Amidst the madness of the USA offering free reign over their government and spending to a billionaire, you might have missed our own dose of local corporate welfare. Every Albertan should be offended.
I’m not talking about the orphan oil wells bailout or the growing scandal around healthcare contracts, or even Dynalife. I’m talking about a new agreement (I refuse to call it a “deal”) pulled together between the Provincial Government and Daryl Katz’s OEG Sports & Entertainment (OEGSE). Katz is listed in Maclean's magazine as the 29th wealthiest Canadian.
The good news is that the agreement is subject to a City Council vote, and there will be a future opportunity for you to speak and make your voice heard.
The bad news is that Edmontonians or City Council have very little say in the agreement itself.
Here’s what you need to know:
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The province announced there is funding available for Edmonton – but only if it is agreed to by Edmonton, the Province and the Oilers Entertainment Group. Yes, you read that correctly. I co-authored an op-ed opposed to this exact type of deal – picking corporate winners and losers with public money – with Scott Hennig, the CEO of the Canadian Taxpayers Federation.
- The Premier offered some funding to Edmonton– but the giant catch is that the funding is only eligible for us if the OEGSE agrees to the deal, and the City of Edmonton finances it on our debt and assumes all the financial risk, while receiving no future profits.
- This isn’t about the 2013 Rogers Place agreement, but it is connected. A new city memo shows that since that deal was struck, Edmonton taxpayers have borrowed $578 million to pay for the downtown arena and the annual debt servicing costs are $33M. That is debt room that cannot be used to build roads, bridges, or any other major project. Thirty-three million dollars is approximately a 1.5% property tax increase.
- The province has still not paid Edmonton almost $96 million in unpaid property taxes Since 2019.
- We have already used 87% of our debt room as a city. We have reached a half a billion dollars in deferred maintenance annually. Why are we being asked to add to that? Money spent on a 250 million dollar fan park is money that can’t be spent building important, public projects. Which projects are at risk if this additional debt space is occupied?
- Also included in the deal are that the province would pay for the demolition of the Northlands Coliseum and some upgrades to our public infrastructure near the arena. These are things that we want and deserve from the province, without the strings of corporate handouts.
- There has yet to be an independent analysis about the housing subsidies: could we achieve greater investments elsewhere or from other developers?
- There has yet to be an independent analysis of the event park and it’s impacts on other concert venues or the Edmonton Events Centre.
I agree with the labour-leaning Working Families Edmonton "The taxes that working families pay are for core services NOT to pad the profits of a BILLIONAIRE."
I Agree with the Canadian Taxpayers Federation, “Taxpayers’ money already purchased both Alberta NHL teams a new arena. Taxpayers should not be paying to build extra concert spaces for the Oilers owner”
Agree with constituents Dr. Jay Scherer and Andy Grabia, "Danielle Smith and her government are bullying Edmonton city council into providing public financing to the 29th richest man in Canada, a man worth an estimated $5.6 billion." )
I agree with 2015 MLA Opposition Leader Danielle Smith, "We would not provide funding to a new arena in Edmonton")
If the OEGSE would like to expand their business ventures, they should be the ones to pay for it. It is that simple.
Email City Council: [email protected] and make sure my colleagues know that Edmontonians do not want our tax dollars going to further fund corporate welfare.
