December 16, 2008

Edmonton mayor floats Oilers arena

Edmonton Mayor Stephen Mandel says he'll soon announce a financing plan for a new Oilers hockey arena, expected to cost about $450 million, plus land acquisition costs. As much as 70% of the cost would be paid for by public bonds, but Mandel says "no current property tax dollars" would be used. The trick? Future property taxes would be just fine, so Mandel could propose, say, a "community revitalization" tax on all future developments in Edmonton to finance the public's share.

Reaction so far isn't exactly overwhelmingly favorable, with the city council grousing that it's been kept out of the loop, and the Edmonton Sun's Andrew Hanon writing today:

But here's the thing: there's a global economic recession going on. Compared to other parts of the country, Edmonton has been relatively insulated from the economic deep freeze. But is this really the best time to finance a major -- and entirely unnecessary -- construction project with income that might or might not be there?