$700K needed for Indy debt, Northlands says
CBC News
Posted: Mar 15, 2013 6:36 PM MT
Last Updated: Mar 15, 2013 8:13 PM MT
The Edmonton Indy may have broken down, but the bills for the race continue to roll in.
Northlands is asking the city for almost $700,000 to cover the debt that the organization took on from it started operating the event in 2008.
"I would have difficulty understanding why now,” said Mayor Stephen Mandel. “Three years later, they can talk about whatever they want."
The city already spent more than $20 million on the Indy race over the past eight years, including $14.7 million to cover Northlands' costs.
Lorna Rosen, the city’s chief financial officer, says the plan was to have the costs in the early years of the event covered by money made when the event became more successful.
“But as we know there were no future successful Indys, and so those costs just got missed," Rosen said.
Rosen says if city council does agree to give Northlands the money, it will likely come out of the 2012 surplus.
Mandel says he’s not sure whether council will approve the money. However, even with the losses, he thinks people should view the Indy as a worthwhile investment.
"The Indy was of great benefit to the city in promoting the city and creating opportunities," he said. "That's at a cost, but all things we do have costs and we hope at the end of the day they're of greater benefit."
Councillors will decide on the funding request Wednesday.
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