Oilers, city reach arena agreement framework

Published May. 19, 2011 2:10 p.m. ET

Edmonton officials and the owners of the Oilers have reached a framework agreement to finance a $450 million downtown arena for the team.

The deal would see the city provide $125 million and the Katz Group, which owns the Oilers, pay $100 million; another $125 million would come from a user-paid facility fee.

Edmonton Mayor Stephen Mandel says they will now approach the provincial and federal governments for the remaining $100 million. A spokesman for Alberta Premier Ed Stelmach says the provincial government will look at the specifics of any request to spend $100 million for the arena. But Mandel says the government won't subsidize privately owned enterprises.