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Originally Posted by getbak
Speaking of the Oilers' new arena: http://www.edmontonsun.com/news/edmo.../17903976.html
Edmonton's City Council met Wednesday night and approved a plan for financing the new arena...sort of. They've agreed to providing $250 million in funding through a "community revitalization levy" (whatever that is), and a ticket tax. The only hitch is that Katz doesn't necessarily want there to be a ticket tax. Also, the other hitch is that with the city's $250 million, and the $100 million that Katz has pledged, they're still $100 million short of the $450 million anticipated cost.
Also, according to this, there's a lot of money flowing into Edmonton for new projects and/or upgrades (about a billion with the new museum and arena): http://www.edmontonsun.com/sports/co.../17915771.html
Where'd they get all that money? |
It's the same way that the East Village is being funded in Calgary, and is also sometimes known as Tax Increment Funding. What happens is that an area is chosen, the money for the project is borrowed, and the property taxes for that area are frozen at the same amount while the project is constructed over a time period. After it is complete, the property taxes are unfrozen, and given the increased property value they will have, the taxes will be higher. The difference on the taxes from before and after goes directly into paying back the loan for however long it takes to be paid back.
Edmonton is also the first municipality to be awarded the Province's Green TRIP funding for use on a project, using $497M to help build their new North LRT line to NAIT.