An artists rendering of the proposed downtown Edmonton arena. The Katz Group

The province is looking at helping the City of Edmonton pay for a new downtown arena, says Premier Ed Stelmach.

"All indications are the economy is coming back very strongly," he told reporters outside Government House Tuesday. "We are leading the nation.

"We'll get a first-quarter report and see where it goes from there."

Edmonton Mayor Stephen Mandel met with the premier Tuesday afternoon but left saying he'd leave all comments to the premier.

The government is examining how Municipal Sustainability Initiative grants might be used to cover the $100 million shortfall in funding.

The grants come from a multi-billion-dollar pot of money put aside by the province to help municipalities upgrade infrastructure such as public transit, recreation and sport facilities, roadways and bridges, or storm sewer systems.

The city is depending on the province to help pay for the $450 million arena.

A framework agreement between the city and The Katz Group sees the owner of the Edmonton Oilers contributing $100 million and the city $250 million largely through facility improvement fees and a community revitalization levy.

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