Mimi Williams <will.mimi@gmail.

com>

Question regarding arena financing

9 messages Mimi Williams <will.mimi@gmail.com> To: ronna.bremer@edmonton.ca The following excerpts are both from the Edmonton Journal February 11, 2010: According to Gary Klassen, the city's general manager of planning and development, a big downtown development like Edmonton City Centre pays 1.4 per cent of its assessed value in property taxes. So even if -and it's a big if -- all the developments spurred by the arena had a total assessed property value of $1 billion, they'd generate $14 million a year in taxes." Paula Simons A proposal to have the city fund a downtown arena with taxes generated by surrounding development doesn't appear to add up...The Katz Group wants the city to borrow money to build the $400-million sports facility, then repay the loan using tax revenues generated by the $1-billion worth of office towers, hotels, shops, casino and other projects planned for the district. At current municipal interest rates, annual payments on a $400-million loan over a typical 20-year term would be about $31 million, Edmonton's chief financial officer Craig Warnock says. But commercial real estate assessed at $1 billion generates about $14 million a year in civic property taxes, according to Journal calculations. - Gordon Kent. ---end quote-My question relates to the servicing of this debt. If the loan is now going to be $600 million, it will have payments of approximately $45 million a year. If $1B of development appears miraculously tomorrow, it will only generate $14 million a year in taxes. If my memory serves correctly, administration has advised that it would take 10 years to get there, optimisticly. The Mayor keeps repeating that this will have no impact whatsoever on taxpayers but I cannot see how that is possible. Who is going to be making those loan payments from years 1 to whenever development is actually enough to service the debt if it's not the rest of the taxpaying public? Please advise. Mimi Williams Thu, Jan 24, 2013 at 11:42 AM

BETWEEN THESE E-MAILS THERE WAS A PHONE CALL IN WHICH I WAS

ADVISED LORNA ROSEN WOULD BE RESPONDING TO MY QUERY.

Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com> When did you say your deadline was? Monday at what time? -----Original Message----From: Mimi Williams [mailto:will.mimi@gmail.com] Sent: Thursday, January 24, 2013 11:42 AM To: Ronna Bremer Subject: Question regarding arena financing The following excerpts are both from the Edmonton Journal February 11, 2010: "According to Gary Klassen, the city's general manager of planning and development, a big downtown development like Edmonton City Centre pays 1.4 per cent of its assessed value in property taxes. So even if -- and it's a big if -- all the developments spurred by the arena had a total assessed property value of $1 billion, they'd generate $14 million a year in taxes." Paula Simons
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Thu, Jan 24, 2013 at 12:17 PM

Mimi Williams <will.mimi@gmail.com> To: Ronna Bremer <Ronna.Bremer@edmonton.ca> End of business day is fine. 4:30. Mimi
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Thu, Jan 24, 2013 at 12:20 PM

Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com> Thanks she will try tomorrow but good to know the deadline Monday. -----Original Message----From: Mimi Williams [mailto:will.mimi@gmail.com]
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Thu, Jan 24, 2013 at 12:22 PM

Mimi Williams <will.mimi@gmail.com> To: Ronna Bremer <Ronna.Bremer@edmonton.ca> I got no response, Ronna. Can you please advise? Mimi Williams
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Thu, Jan 31, 2013 at 8:50 AM

Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com>

Thu, Jan 31, 2013 at 8:58 AM

Sorry I had thought Lorna was going to connect with you so have asked her to do so again.

THEN I TWEETED THIS:

Mimi Williams @willmimi Asked Admin pretty simple #yegarena budget ? last Thurs a.m. Requested response by Mon 4:30. It's Thurs a.m. again, still nothing. #yegcc 3:56 PM - 31 Jan 13 (this was actually 8:56 a.m.)
And this:

Mimi Williams @willmimi If #yegarena $600M loan pmts are $45M/yr & $1.B development=$14M/yr taxes, who pays diff? Who pays for 10yrs before develop occurs? #yegcc 4:00 PM - 31 Jan 13 (this was actually 9:00 a.m.)
And this:

Mimi Williams @willmimi See, a very simple question. Why won't #yegcc & Admin answer it? Someone (not Katz) will be servicing that #yegarena debt. Who? 4:08 PM - 31 Jan 13 (this was actually 9:08 a.m.)

-----Original Message----From: Mimi Williams [mailto:will.mimi@gmail.com] Sent: Thursday, January 31, 2013 8:50 AM To: Ronna Bremer
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Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com>

Thu, Jan 31, 2013 at 10:15 AM

I have connected with the folks in Finance and expect an answer later today that I can provide you. In the future if you submit a request to me and you don't hear from the City by your deadline please follow up with me before the deadline and I will certainly follow up. We are committed to providing timely responses. Ronna -----Original Message----From: Mimi Williams [mailto:will.mimi@gmail.com] Sent: Thursday, January 31, 2013 8:50 AM To: Ronna Bremer
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Mimi Williams <will.mimi@gmail.com>

Thu, Jan 31, 2013 at 10:44 AM

To: Ronna Bremer <Ronna.Bremer@edmonton.ca> Me following up with you before the deadline I've already given you when you've told me you've referred the matter to someone would kind of require me to anticipate that the person to whom you referred the matter was going to miss the deadline. For example, if I called you at 2, your response could (reasonably) be, "You said your deadline was 4:30." In the future, I will be glad to provide you with both a deadline and a heads up when it has not yet been, but might be, missed. I look forward to the response from Finance. Mimi Williams
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Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com>

Thu, Jan 31, 2013 at 6:12 PM

Mimi I wanted to let you know I am waiting for the information but have been in meetings all day today doing interviews and was unable to follow up before now - as soon as I receive it I will forward the information. Thanks for your understanding and I apologize for the delay Ronna -----Original Message----From: Mimi Williams [mailto:will.mimi@gmail.com]
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Mimi Williams <will.mimi@gmail.com>

Response to your inquiry

2 messages Ronna Bremer <Ronna.Bremer@edmonton.ca> To: Mimi Williams <will.mimi@gmail.com> Fri, Feb 1, 2013 at 7:05 AM

As you may know, the total project costs including the arena, arena land, and associated infrastructure is projected to be $601 million. Of that, $143 million will be funded by the Katz Group; $125 million through a ticket surcharge (user pay); and $114 million from other orders of government. The City's contribution is to be $219 million. The anticipated principal and interest payments on the City's contribution are projected to be approximately $13.5 million. Of that, approximately $4.7 million will be funded through a reallocation of existing subsidy, increased downtown parking revenue and property taxes on the arena and arena parking. The balance of approximately $8.8 million is to be funded through a Community Revitalization Levy. This would require increased assessment of approximately $500 million. With the approval of a CRL, the City would retain the education portion of the property tax associated with the increased assessment thereby requiring less total assessment to generate the funds than if it

were based on municipal taxes alone. Thank you Ronna Bremer Director, Corporate Communications City of Edmonton (T) 780.944.7753 (C) 780.405.6484 www.edmonton.ca

Mimi Williams <will.mimi@gmail.com> To: Ronna Bremer <Ronna.Bremer@edmonton.ca> That does not even come close to answering the question that I asked. Mimi
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Fri, Feb 1, 2013 at 7:34 AM

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