Katz Group launches court battle with Edmonton homeless organization over $5M donation

A subsidiary company of the Katz Group is suing a local agency that provides services to the city's homeless population for breach of contract. 

Ice District Corporation, which is a part of Katz Group Real Estate Inc., filed a claim in Edmonton's Court of King's Bench in November, arguing it should be off the hook for a conditional $5-million donation it promised to pay as part of Boyle Street Community Services fundraising efforts for a new location.  

The social agency's future home known as King Thunderbird Centre, okimaw peyesew kamik in Cree, and the cost of that relocation, is at the heart of the legal battle.

According to court documents obtained by CBC News, the Katz Group alleges that it shouldn't have to make the donation because Boyle Street didn't try hard enough to fundraise on its own.

Meanwhile, Boyle Street argues in its own filings that the Katz Group is trying to get out of its commitment to help with the relocation now that it has acquired the downtown property it repeatedly offered to buy from the social agency. 

None of the allegations made as part of the civil claim have been proven in court. 

Katz Group Real Estate is part of the Katz Group, a private conglomerate founded by Daryl Katz, the billionaire owner of the Edmonton Oilers.

The Katz Group led the construction of Rogers Place, the downtown arena where the Oilers play, as well as development in the surrounding area, which has since been renamed Ice District.

Both the Katz Group and Boyle Street declined interviews for this story, but provided written statements saying they're in the midst of trying to resolve the dispute through a private arbitration process.

"We can't comment on the details of legal proceedings currently ongoing; however, we remain supportive of Boyle Street Community Services and their plans to move into the King Thunderbird Centre, which will provide them with a long-term, sustainable facility to deliver their services," said Tim Shipton, OEG Sports & Entertainment's executive vice president of external affairs. 

OEG Inc., formerly known as Oilers Entertainment Group, is another part of the Katz Group enterprise.

In an emailed statement, Boyle Street Community Services said its position on the issue is outlined in its statement of defence filed with the court.

"We have and continue to explore multiple funding avenues for this critical project as we owe it to those that we serve to ensure this building becomes a reality," Boyle Street said. 

Before striking a deal with the Katz Group, Boyle Street operated a community centre out of an old warehouse in downtown Edmonton for 25 years, on land just northeast of Rogers Place.