INTERVIEW WITH PATRICK LAFORGE: PART II

First Installment...


In Part I of this interview, we discussed everything from ticket pricing and locations for season seat holders, to parking, to concessions and contingency plans if Council doesn't approve the project. Since that post, the Oilers have posted a cool little video called "The time Is Now..." urging citizens to contact City Hall before April 6th (proposed vote day on project) to have their voices heard on the project. I would out the link to the video here if I could figure out how.


I wrote the city at 311@edmonton.ca and had my say. I have also written the Councillor in my Ward to let them know I will not vote for them again if they do not support this project.


Disclaimer...


There are things in this interview that have been edited for content, but it stays true to the nature of the discussion that Patrick and I had.


Part II...

realoilfan: how do you guys lobby the federal government based on the Quebec Arena possibly getting federal funding?

Laforge: The challenge is that cities lobby on behalf of projects that are theirs, and this is a city project. So we can't get money for this project, but the city could. We could certainly support them in their effort to get funding, but they have to lobby the Province and the Feds.

realoilfan: but, don't they see this isn't just about the city when tourists from the States and everywhere, come here to spend money in Alberta and subsequently Canada, and therefore it's bigger than just an Edmonton thing?

Laforge: so far this city has not seriously pan-handled the Provincial Government or the Federal Government for funding.

realoilfan: So what's the role of the league then? I know Gary Bettman (NHL Commissioner) has been on record as saying this city needs a new arena and he's constantly in communication with The Oilers and is pushing the Mayor for it. do you think the League could have some sort of role to help lobby Governments for funding for the project?

Laforge: No, the responsibility only goes to the City. Edmonton gets a stream of money from the Feds and the Province, and the City has to decide on its priorities and projects. It negotiates deals for hundreds of millions of dollars that usually go to things like transportation, schools, LRT and hospitals. Infrastructure. It would have to rearrange it's priorities and i think that what they're trying to do...figuring out it's priorities. 

realoilfan: I have heard all kinds of funding models like seat licenses and service charges on tickets, and now the CRL model. is there on that you guys are pushing forward with now? Is the CRL what you're hoping to go with?

Laforge: Yeah. What Darryl (Katz) is proposing is...that the funding for the arena will be based on the tax revenue generated from the development of existing parking lots. Not the taxes from the old lots, but the taxes generated by development. And so...you need the development around the arena to make it work and so we're saying to City Hall that the money we pick up here for you, will go back to pay off the arena.

realoilfan: having said that...don't you need some partners that are willing to help with the development? A casino partner, hotel partners, businesses willing to open head offices in the office tower so that you can show the City that you have that ability?

Laforge: Right on! But the arena needs to get the funding first. Their all sitting there ready...I think we have in the neighborhood of five hotels that are interested. They have sent letters saying that they're interested, that say once you get approval on the arena we'll make our offer real. And we're not making it real yet, because you don't have an arena.

realoilfan: When would construction have to begin, in order to meet the deadline for the 2014 season?

Laforge: One year from today. But...time's ticking. We're dangerously close to being past it.

realoilfan: you had mentioned at the meet & greet event the other day that there's a short window of opportunity to ensure material and construction costs. I assume you have factored in inflation rates and the costs increasing over the length of construction? And what happens if you go over budget? do you have a plan for that?

Laforge: Well...no, there isn't a plan.PCL (construction) costed out the construction of the building. For a rough design without blueprints, an 800,000 square foot would be approx 450+ (million dollars) that for the winter garden and the practice rink too. If it goes much longer...those rates are no longer real.

realoilfan: Is there an expiry date on the quote?

Laforge: PCL has given us another month on our quotes. that's it. 

realoilfan: There's a Council vote on April the 6th right? Is that day that you will know one way or the other whether this going to happen?

Laforge: I actually don't know the answer to that. Whether April 6th is a vote or not I couldn't say. Honest to god in my heart of hearts i don't know. I think that it was planned to be a vote, and the Mayor has said some things lately that makes me think that it won't be. the Mayor is pushing for the vote. He's told council that this has gone on for three years, he can't get tham any better information than they already have and it's time to make a decision.

realoilfan: Is this just about a new home for the team?

Laforge: Darryl's (Katz) interest in Edmonton is very deep. He lives here, his family lives here, his wife's family has been here for generations, btu it goes back to some research that states Rexall is outdated and needs to be replaced. You don't replace way out on 118th Avenue, you put it in urban downtown Edmonton. It will create a HUGE rejuvenation, and it would be one of the things that stimulates that. that's what the Mayor and Council have said. Darryl (Katz) has said I will put together a development, a district that the arena will go in the middle. The City owns the arena just like they do with Rexall Place, we'll run it and push the development around it and put a hundred million dollars into getting it started and that's the best of both worlds for the City. And the Mayor gets it. The development around the arena will produce a projected $160,000,000 - $200,000,000 in new taxes which will go into paying for the arena. which would pay it off in 30 years. if it made the $200,000,000 in new taxes, then it would be paid off in in 20 years.

realoilfan: what's the life expectancy of the rink?

Laforge: 40 years. It could be longer...but everything goes out of style.

realoilfan: last question....it's a two parter. The Oil Kings, are they going to be a part of this, or will they stay at Rexall? Second part to that...what's going to happen to Rexall Place?

Laforge: The Oil Kings have to be a part of this. They will play in the new building. I don't know what the plan is for Rexall Place. I doubt that we will go through this process where we would end up competing with the two arenas. One that is old and run-down at discount prices and one not. The new building can hold every event without any issue, that Rexall does. 

realoilfan: Patrick, I want to thank-you immensely for doing this for me and my readers! It is appreciated.

Laforge: It was my pleasure, thank-you.