City Retains External Expertise to Protect Public Interest in Arena Negotiations
September 09, 2011
As requested by Council, the City of Edmonton has secured external counsel and expert analysis as part of a comprehensive process to ensure due diligence in the pursuit of a complex agreement on a downtown arena.
“On January 18, 2011, a City Council motion directed us to use external expertise, where required, to advance the development of a viable business model framework for financing and operating a downtown sports and entertainment facility,” said City Manager Simon Farbrother. “The expertise in areas of economic analysis, business and facility management, and legal negotiations has been instrumental in protecting the interests of Edmontonians. The costs are appropriate for a deal of this size and complexity.”
In response to a request from Council on August 31, 2011, Administration provided an overview of costs related to the arena project.
Administration has previously reported to Council that as of the end of 2010, $450,000 was spent on external consultants to investigate viability and public input on the downtown arena development.
In 2011 an additional $665,000 has been spent as follows:
| Consultant | 2011 YTD |
| Communications support |
$62,000 |
| External Legal Counsel |
$260,000 |
| Arena Development and Facility Management Consulting |
$36,000 |
| Sports Facilities Economics Consulting |
$20,000 |
| Website development (online survey and video) |
$50,000 |
| Local Market Analysis |
$62,000 |
| Real Estate Appraisals |
$25,000 |
| Advertising for consultation and information |
$150,000 |
| Total (YTD) |
$665,000 |
A further $290,000 is budgeted for the remaining existing contracts, plus an additional $210,000 for external counsel.
