The Edmonton city council thinks they’ve come up with a new way to fill the Oilers arena funding gap, and this time it’s not beating their head against the provincial government’s door. Or just spending the money and hoping they can pay for it later. Well, okay, yes, it is just spending the money and hoping they can pay for it later, but pay for it laterin a different way:
City council could look to the community revitalization levy to cover the missing $55 million needed for the proposed downtown arena project if the province doesn’t come through, some councillors say.
The levy is up for debate Wednesday as administration presents a list of revitalization projects that could be funded with the projected increase in taxes from development in the levy area. Administration earlier suggested development around the downtown arena project will raise $612 million to $1.1 billion over the 20-year life of the levy.
The CRL is essentially a Canadian version of a TIF, wherein future growth in tax revenue gets kicked back to pay for the project that (allegedly) helped sput its growth. The Oilers arena is already being funded by CRL money, but now it sounds like Edmonton is considering just increasing the amount of pretend money that it projects the arena will generate in the future, magically creating more cash to pay off the arena debt. And if the money doesn’t turn up, well, hey, they were just going to blow it on parks and roads anyway.