Katz group blames real estate, pandemic for years-long delay of Ice District’s urban village

April 19, 2024 Canuck

An urban village at Ice District in central Edmonton — 2,500 residential units and a public park — is now expected to take at least three years longer to build than previously planned.

Construction was slated to start this year as part of Phase 2 of the OEG (formerly Oilers Entertainment Group) master plan to develop the land around Rogers Place.

Tim Shipton, executive vice-president of OEG, appealed to city council at a public hearing April 2, outlining the obstacles the development was facing.

“Our timelines for development have been drastically impacted by the knock-on effect from the pandemic we’re seeing here in Edmonton and markets across North America,” Shipton said.

A slow-to-recover real estate market added to the hurdles, Shipton added.

City council agreed to let the group operate two surface parking lots north of 105th Avenue, one between 102nd and 103rd Streets and another east of 102nd Street, for up to five years.

Council had approved the Central McDougall Urban Village Zone in August 2022, allowing for a high-density, mixed-use, urban village.

The parking lots were permitted until Dec. 31, 2023; now with council’s blessing, the group can continue using them until Dec. 31, 2028.

Anne Stevenson, councillor for Ward O-day’min, said it wasn’t an ideal scenario but the best of two options.

“It was a tough decision,” Stevenson said in an interview Thursday. “We know that surface parking lots isn’t what we want to see in our downtown core.

“The question really became, do we want it to be a completely vacant, empty property for three to five years or do we want to see at least some community use happening there?”

Parking not part of the plan

“Acquiring that land, [we] certainly never envisioned it to be parking for the rest of time,” Shipton said.

He noted the work the OEG has done in the area so far, developing 16 of 25 acres over the last 10 years: the arena, two office towers, a hotel, residential units, the plaza, and Ice District Fan Park.

“So it’s not like we’re sitting on our hands. We’re doing this in an orderly process,” Shipton said. “The market is lining up for us to develop.”

The company said it will work with governments, investors, developers, post-secondary institutions and other community partners to build out the housing development.

“From student accommodations to housing options for families wanting to live and work downtown, and other attainable housing opportunities, the vision is to help meet the growing demand for housing in our downtown core,” Shipton said in an email to CBC News this week.

A rendered map of two parking lots north of Rogers Place. — Two parking lots north of Rogers Place will be used in the next three to five years after a city council vote earlier this month. (City of Edmonton)

City planners supported the zoning amendment, saying the land is part of Edmonton’s distinct cultural, economic, institutional and mobility hub with the highest density and mix of land uses.

“It includes a critical mass of housing, employment and civic activities and anticipates that high-rise and mid-rise buildings be developed here,” the report said.

“And the temporary surface parking is not seen as preventing desired development from being achieved,” the report said.

During the public hearing, Ward Sspomitapi Coun. Jo-Anne Wright expressed hesitation about approving the parking lot extension.

“I’m concerned as well that this is going to sit vacant, [a] gravel lot for another five years with nothing being done,” Wright said. “I don’t see this as being good use of land, to have these surface parking lots.”

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