The city of Edmonton announced late Wednesday that it had reached a deal with the Katz Group to build a new downtown arena and keep the Edmonton Oilers in the city for at least 35 years.

The newly-approved framework will form the basis for negotiations on a master agreement between the Katz Group and the city on the financing and construction of the $450 million arena, which will replace Rexall Place as the home of the Oilers, which are owned by Rexall Pharmacy billionaire Daryl Katz. 

Edmonton city council voted 8-5 in favour of the framework

While the city will own the land and the building, the Katz Group will operate the building and be responsible for all maintenance, upgrades, operating and capital expense costs.

The arena's price is set at $450 million and the Katz Group pledges to contribute $100 million to the cost. 

The city will contribute $125 million and another $125 million will come from a user-paid facility fee. The source of the outstanding $100 million still hasn't been determined.

Under the deal , The Katz Group also promises to keep the team in Edmonton for at least 35 years .

"We believe this framework is fair for both sides and reflects what we heard from Edmontonians," City Manager Simon Farbrother said in a news release.

"This framework allows us to move forward with this project and ensures that we will continue to align our efforts with what the community has told us are Edmonton's priorities for this important project."

The deal comes six weeks after council approved a framework for city staff to use in their negotiations with the Katz Group.

A city news release says the framework is not a final and binding agreement but allows both parties to negotiate towards a final master agreement and seek sources for the outstanding funding.

The new arena is proposed to be built on the present site of the Baccarat Casino at 104th Avenue and 101st Street.