Southwest Edmonton is a step closer to a new recreation centre after city councillors voted to negotiate a public-private partnership, known as a P3, with a developer.

After hours of debate that lasted late into Tuesday, city council voted 7-4 to finalize a deal with a private company to build a new rec centre and arena in Terwillegar.

Under the arrangement, the city will contribute $56 million and the company would have to raise the rest of the total $90-million cost of the project.

'Our citizens want a rec centre and we need to deliver it to them in a way that's effective, efficient and cost efficient.'—Stephen Mandel, mayor

The private company would design, build and operate the facility and keep all the revenue, but the city would buy thousands of hours in ice time from the centre once it's open.

Working with private owners made some councillors nervous.

"We know that these have gone wrong probably more times than they have gone right. There may not have been some that went right," said Ward 4 Coun. Ben Henderson.

"We're making a commitment that may be making success or a mess for councils for 20, 30 years down the road."

But Mayor Stephen Mandel was confident the P3 deal was the way to go.

"This is a philosophical issue and so this will always have a bit of a divisive nature on city council," he said Tuesday.

"But we're here to service our citizens. Our citizens want a rec centre and we need to deliver it to them in a way that's effective, efficient and cost efficient."

'We're making a commitment that may be making success or a mess for councils for 20, 30 years down the road.'—Ben Henderson, city councillor

Local community groups said they had no problems with a P3 agreement and are eager to see the complex built on the northeast corner of Terwillegar Drive and 23rd Avenue.

"We see a definite need for this in the community," said Joe Yurkovich of the Terwillegar Riverbend Advisory Council. "Everyone's very interested in it and we definitely want to see it go forward."

The city will spend the next three months negotiating a contract with the private company, which has not been named.

If a deal is reached, construction could begin by March on the first rec centre built in Edmonton in 25 years.

P3 deals are being used increasingly in Alberta to build much-needed ring roads and schools.