Alberta government giving $106 million for Edmonton downtown in partnership with city, Oilers

Edmonton’s lobbying of the province for equality with Calgary is now starting to pay dividends.

Part of Budget 2025 includes $106 million over three years as part of a partnership with the City and OEG Sports & Entertainment (OEGSE) to expand downtown revitalization and demolish the old Northlands Coliseum.

Plans are still being finalized, but proposals include another event park east of Rogers Place, and taking down the old home of the Oilers.

Friday, the province signed a memorandum of understanding with the City and OEGSE.

“Alberta’s government is proud to be partnering with the City of Edmonton and OEG Sports & Entertainment on this exciting plan to support world-class facilities and services and revitalize downtown Edmonton. This agreement would ensure that Edmonton continues to be one of Canada’s and North America’s leading entertainment and event districts,” said Smith in a statement.

While Finance Minister Nate Horner did not say much about the funding in his news conference on Thursday, directing future questions to the municipal affairs minister, the province said Friday that the goal for the project would be to develop new housing spaces in downtown Edmonton.

But Mayor Amarjeet Sohi says he’s happy to see the city’s advocacy to the province is paying off.

“I’m glad steps are being taken. But we have a long way to go, and will continue to work with Premier Smith,” said Sohi.

“This investment will boost our economy and solidify Edmonton’s status as a global events hub. I’m pleased the Government of Alberta is investing in our city. Municipalities need provincial support to manage record growth, and this funding will support diverse housing projects, including needed affordable housing.”

Business leaders in the city hope the investment will entice Edmontonians back downtown, not just to visit, but to live.

“We do talk a lot about how we do need more residents in downtown Edmonton. Right now we’re about halfway to where we should be with other major cities — about 13,000 people living downtown, we would like to get to 25,000,” said Quinn Phillips, Downtown Business Association.

The group in charge of downtown recovery told CityNews, highlighting how downtown’s tax base has shrunk since the pandemic, believing a strong downtown will benefit all Edmontonians.

“Downtown’s decline should be everyone’s worry — every single resident in this city whether they live downtown or not should worry about that because if that tax base downtown is dropping — then folks in the suburbs are going to have to make up that amount,” said Cheryll Watson, the Chair of the Downtown Recovery Coalition.

It’s only a slice of what Calgary has for its downtown arena. The home of the Flames got $330 million from the province.

Regardless of the exact numbers, the Canadian Taxpayers Federation says this corporate welfare should not be happening.

“We shouldn’t be giving taxpayers money to NHL teams. Period. Even if I’m an Oilers fan or a Flames fan, love watching them, no way should taxpayers money be going to those,” said Kris Sims, Alberta Director Canadian Taxpayers Federation.

But one woman living near the Ice District disagrees.

“The Oilers are hugely involved in the community in Edmonton. It’s a huge part of our identity, our culture as Edmontonians. Nothing brings this city together like hockey, and that transcends Edmonton as a culture, and I would say that’s Canadian,” she explained.

The Northlands Coliseum is slated for demolition this year. It is expected a new LRT station will be built and the remaining land sold to developers.

The province says a more formal announcement will happen in in days to come.