One Fort McMurray councillor hopes to convince his colleagues to abandon plans for a $580-million downtown arena, even though the municipality has spent millions to clear the way for the project.

Keith McGrath, a councillor for the Municipality of Wood Buffalo, has tabled a motion asking the local government to kill the deal.

With oil hovering around $45 US a barrel and the local economy in recession, McGrath says the municipality can't afford to spend millions on an arena and entertainment complex.

"I think it's time for us to put our plans in neutral, and figure out our road ahead," McGrath told CBC News on Tuesday.

Planning for the project has been underway for more than three years, and the municipality has already spent millions to buy a few blocks of downtown to make way for construction.

But McGrath thinks the price is too high and would cost taxpayers too much — about $15 million annually over the next 40 years.

Last month, the municipality held its first public session to show off the plans, which call for a 6,200-seat arena, retail and restaurant space, an attached four-star hotel and a parkade.

The total cost is now estimated at $580 million. Edmonton plans to spend $606 million on its downtown arena project, which includes a winter garden, pedway and community rink.

Representatives for the arena developer, International Coliseum Company, attended the session to talk about the plans.

But McGrath now wants the deal set aside, arguing it's not a good deal for taxpayers who would have to pay much of the cost.

"Did we buy the land prematurely? Absolutely," he said. "Was there an independent government recommendation not to expropriate? Absolutely. The council of the day, the administration of the day, decided against that and just went ahead. But you can't be held hostage because you bought some land."

McGrath said residents he has spoken to agree that now is not the right time for such a costly project.

CBC News contacted International Coliseum Company, but the company declined to comment.