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Council approves LOI for arena; No Oilers affiliate

(Photo Supplied: The new sunken bowl design for the Sports and Entertainment Centre submitted by International Coliseums Company. May 25, 2015. Council Documents/RMWB). )

Fort McMurray is one step closer to having a sports and entertainment centre (SEC) in the downtown core.

Mayor and council approved the signing of a non-binding Letter of Intent (LOI) with the International Coliseums Company (ICC) to build the project.

It’s the next step that will allow for administration to negotiate with the builder and bring a final design and financial numbers to the community.

Ted Zlotnik, the RMWB’s Supply Chain Manager also announced that an Edmonton Oilers affiliated lead tenant is no longer a possibility.

That’s because ICC has dumped the Oilers Entertainment Group as the facility operator and has switched to the SMG group.

“The ICC changed their mind and decided they wanted to partner with SMG instead of the Oilers, it’s as simple as that as a fact,” said Zlotnik. “About two to three weeks ago that relationship changed.”

That timeline coincides with the same time the Oilers made a number of organizational changes including bringing in former Hockey Canada President and CEO Bob Nicholson as the CEO of the Oilers Entertainment Group and booting out Fort McMurray supporter Pat Laforge as COO.

The SMG group operates a number of arenas in Canada including the Hershey Centre, the home of the OHL’s Mississauga Steelheads and the Medicine Hat Regional Event Centre, home of the WHL’s Medicine Hat Tigers.

Now the ICC is guaranteeing a tenant that will play in the AHL, ECHL or WHL but it won’t be an Oilers affiliated club.

A final design and more financial details are expected to come in the fall.

“Until we get into more of the nuts and bolts of the design then we could release more solid and stable financial information, right now it’s just way too fluid and preliminary,” says Zlotnik.

The RMWB has attached a few key parameters requested by council including a sunken bowl design, a lead tenant guarantee with a minimum number of events per year.

ICC has also provided an option for a parkade with 508 stalls as well as an attached Sandman Hotel with Sharks Sports Bar & Grill inside.

“It’s exciting to move to the next step in this process and we’re thrilled about what it could mean for downtown – namely catalyzing economic redevelopment, and bringing a much-needed facelift to that part of town,” said Mayor Melissa Blake. “While nothing is set in stone, we’re confident in the direction in which we’re headed and look forward to public feedback on this.”