Edmonton could consider more partnerships with private industry to build future arenas, libraries: report

The City of Edmonton could partner with the private sector to build future arenas and libraries if it’s in its best interest, according to a new report that will be in front of city council next week. 

A special infrastructure committee asked administration in June to look at collaboration projects, as more people move to Edmonton and the city is challenged to keep up with maintaining and adding infrastructure. 

“A solution to this challenge requires innovation and creativity to explore different ways of delivering the infrastructure or services,” the report says. 

Based on capital plans already approved, city administration analyzed infrastructure needs and shortlisted four projects to be considered for collaboration with the private sector: renewing Woodcroft Library, developing the Cumberland Fire Station, the Windermere North Transit Centre and various arenas. 

The city has occasionally collaborated with the private sector or other partners in recent years on initiatives like the construction of Rogers Place and the Downtown Community Arena, Jumpstart Playground and the Dr. Anne Anderson Community Centre.

Former city councillor Tim Cartmell, an engineer by profession, said public-private partnerships vary in how they’re delivered, but in general, a company designs, builds and pays for the structure. The city can then lease space from the business. 

A collaboration could benefit the city, Cartmell said, if a project contains more than one component and checks more than one box. 

“If you’re really going to find interesting opportunities, you need to do more than one thing at these sites,” he said. 

For example, if a private contractor builds an arena and also adds retail, some housing or a library, the financial arrangement would change, Cartmell said. 

“So that the city might be paying an operating lease on the arena part, but somebody else is paying operating leases on the retail part, for instance, then that might be to the advantage of the city.”

If the city doesn’t have to take on debt to build a new structure, it could shift the money it would otherwise have spent on repaying debt to pay for operating costs.

Cartmell, who ran for mayor in the October municipal election and lost to former city councillor Andrew Knack, said the new council will have to consider the pros and cons on each project. 

It’s one of the first reports in front of the new council since the election. 

Michael Janz, a returning councillor representing Ward papastew, said he’s open to suggestions, but he is also skeptical.