Article content continued

But the city’s response isn’t likely to put Northlands in a party mood.

For starters, city administrators estimate the real costs of Northlands’ Vision 2020 at closer to $230.3 million. On top of that, Northlands is now demanding forgiveness of its outstanding $47.4 million loan for its last renovation of the Expo Centre. But as the city report points out, the city borrowed that money from the Alberta Capital Finance Authority — and that loan has to be paid back with interest. Forgiving the loan could cost the city $72.8 million.

That could push the total cost of this endeavour to more than $303 million — almost twice as much as the initial Northlands pitch.

Nor, the report argues, is there any guarantee Northlands’ proposed business model would turn a profit — by 2020 or ever.

The report concludes Northlands has over-estimated, by 40 per cent, the market demand for a six-rink tournament hockey facility, and raises concerns that concentrating ice sheets in central Edmonton, where there are already lots of rinks, might disadvantage growing suburbs that are demanding more ice. It also confirms that the master agreement the city signed with the Edmonton Oilers Group makes it impossible for the city to invest any money in upgrading the old arena as a sports complex — unless released from that condition by the Oilers.

Photo by DIALOG design

The report dismisses Northlands’ claim that it could draw 50 concerts a year to the Expo Centre, pointing out that the facility currently hosts just six such events a year, and would face considerable local competition.