Oilers owner had filed $5M lawsuit over funding for inner-city drop-in centre
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Oilers owner Daryl Katz and the homeless agency that once neighboured Rogers Place have come to a positive resolution in an acrimonious lawsuit that made headlines last year.
On Wednesday, Katz Group Real Estate and Boyle Street Community Services issued a two-sentence statement announcing the end of legal action between the two groups.
Boyle Street Community Services and Katz Group Real Estate announced today that the two parties have come to a positive resolution on the legal matter they were engaged in, the statement reads. The Edmonton Oilers Community Foundation and Katz Group Real Estate are lead and foundational supporters of Boyle Streets new okimaw peyesew kamik (King Thunderbird Centre) and our organizations are looking forward to continuing to grow our strong relationship.
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No additional details about the resolution were provided. Boyle Street declined to comment.
The legal dispute became public in early 2024 over funding for the King Thunderbird Centre, a drop-in centre at 107A Avenue and 101 Street intended to replace Boyles Streets homeless community hub next to Rogers Place.
Boyle Street has operated out of a patchwork of spaces since the closure of its longtime 105 Avenue location in 2023. The King Thunderbird Centre, two blocks north in a repurposed paintball facility, was supposed to open a short time later, but has since been delayed until fall 2025.
Part of the delay stemmed from a lawsuit between the two organizations brought by Katz Group.
Boyle Street originally owned the 105 Avenue property, a converted warehouse, where it offered services for the homeless. It agreed to sell the property to Katz Group in 2021 for $5 million to make way for the Ice District redevelopment, plus funding from the Oilers Community Foundation. The building, across the street from the new Oilers fan park, has since been torn down.
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After acquiring the 105 Avenue building, Katz Group allowed Boyle Street to lease the property for a dollar a month through September 2023, at which point Boyle Street expected to move into King Thunderbird Centre. Katz Group also agreed to contribute $5 million to backstop construction of the new centre, depending on the amount of money Boyle Street was able to raise during a capital campaign period, the agency said in a court filing.
Boyle Streets development permit for the new centre, however, was temporarily rejected by the subdivision and development appeal board, delaying construction and forcing Boyle Street to scramble for temporary facilities.
In November 2023, Ice District filed a statement of claim in the Court of Kings Bench asking the court to find Boyle Street breached the backstop funding agreement. As part of the agreement, Ice Districts $5 million contribution would be reduced dollar-for-dollar once Boyle Street secured at least $8.5 million in capital funding.
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The Ice Districts claim, however, accused Boyle Street of failing to adequately fundraise for the project. It also said Boyle Street mishandled the development permit process.
Boyle Street defended its fundraising efforts, saying it brought in more than $8 million at the time of the court battle. It acknowledged the amount fell short of its $13.5 million goal, which would negate the need for the backstop funds. Boyle Street claimed Katz Group and Oilers representatives were part of its fundraising committee and were fully aware of its fundraising efforts. It accused Katz Group of not following through with pledges to help Boyle Street raise funds.
They did not follow up with potential donors, declined to use the significant fundraising potential of the Oilers to assist Boyle Street in raising funds, and generally were not actively involved in the capital campaign circle meetings or activities, Boyle Streets statement of defence reads.
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The group also accused Katz of distracting the organization from important social issues.
Rather than focusing on the unprecedented houselessness and drug poisoning crisis in Edmonton, developing the new premises, and using funds for these purposes, Boyle Street must now use its resources to defend the allegations made by Katz Group.
When news of the lawsuit broke, both sides said they expected to resolve the matter through private arbitration.
Katz Groups lawsuit was met with anger in some quarters, with city councillor Aaron Paquette suggesting a review of public funding provided to the company.
In March, the Alberta government, City of Edmonton, and Oilers Entertainment Group announced a tentative deal worth hundreds of millions to build an event park on the property south of the old Boyle Street building.
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