“This has been a long and difficult process,” Mayor Stephen Mandel told councillors. “We need to make sure that we build a city that attracts and retains the younger generation.”

Construction is to start next spring and the city plans to pay off some of its debt through increased tax revenues from shops and businesses expected to spring up around the arena.

The total cost, including the rink and surrounding infrastructure, comes in at $604.5 million.

Under the arrangement, the Oilers are to pay $161.5 million, the city $279 million and another $125 million is to come from a ticket tax.

Last week, Mandel and political leaders from surrounding regions voted to seek another $25 million from the province under a regional grant program. The city says it will seek an additional $14 million in grants for a community rink attached to the project.

“The result today is a landmark agreement that enables our city to move forward in an enormously positive way,” said Edmonton Oilers owner Daryl Katz, who was not at Wednesday’s council meeting, but spoke with reporters via speaker phone.

Stephen Mandel won’t give any details, saying councilors need to hear about and discuss the issues at the meeting Wednesday afternoon.

Councillors don’t know what exactly the arena update will be, but Don Iveson thinks it must be something of substance.

Last week, Mandel asked for and got the support of the Capital Region Board to support Edmonton’s bid for a $25 million portion of the Regional Collaboration Program.

The program is expected to offer $141 million over the next three years for projects that benefit regions as a whole.

If the application is successful, and the city receives the full amount, Edmonton would still need to find $30 million to cover the remaining amount for the arena.

City council voted unanimously last week to defer the debate on funding for the downtown arena to a later date, to give time to explore other funding options for the project.

The city has already agreed in principle to build a rink and share the costs with Edmonton Oilers owner Daryl Katz.

The Katz Group wouldn’t confirm if they’d have someone at Wednesday’s meeting, but officials seemed encouraged by the mayor’s optimism.

The arena has divided citizens and detractors say the deal is too lopsided in favour of Katz if public money is needed for the rink.

Edmonton taxpayers will pay $219 million toward the 18,559-seat facility, which has a futuristic design of metal and glass.

The Oilers’ share will be $143 million. Another $125 million will come from a ticket tax that wouldn’t exceed seven per cent of the total cost of a ducat.

John Karvellas also poured cold water on a suggestion for a higher ticket tax on games and other events to close a $55-million gap in funding for the rink.

“That’s tantamount to us putting up more money,” Karvellas told reporters after city councillors voted to again delay a final decision on the funding. “Whatever the ticket tax is, the more it goes up, it will impact the underlying ticket price for the event.”

“Would you put forward more money?” a reporter asked Karvellas. ”I’m not going to answer that,” he replied.

“Are you considering it?” the reporter persisted. ”As I say, I’m not going to answer that question.”

Karvellas said he’s still confident the project will go ahead. The plan would see the rink completed by 2016. It’s hoped it will be a catalyst for downtown revitalization, leading to new restaurants, shops, and office buildings.

“MacTavish wants to rebuild his bottom six, with presumably bigger and feistier role players, but they also have to have to some offensive pop. The Oilers could be looking at guys like Cal Clutterbuck, Viktor Stalberg or Bryan Bickell, either in a trade or by signing them as free agents.”

Chicago’s Stalberg and Bickell are poised to be available as unrestricted free agents this July. Clutterbuck is due to become a restricted free agent for the Wild.

“If you’re going to be bold, that’s certainly a bold move,” McKenzie said during Wednesday night’s broadcast. “What the Edmonton Oilers really don’t need is another 18-year-old blue chipper. They need some help right now and using that first round pick as currency could get them that help right now of they may use the pick, but they may try and parlay it into something immediate.”

TSN’s Darren Dreger suggested new Oilers GM Craig MacTavish could be looking to make several changes.

“He wants to upgrade in all areas, starting in goal,” Dreger said.

Adding some size, strength, and grit to the blue line is also thought to be a high priority for the Edmonton club. As it stands, the Oilers are in position to select no lower than 7th overall.

The Oilers made the announcement at a news conference Rexall Place in Edmonton.

“We are not where we want to be right now, or where we should be. We feel strongly we make changes right now,” said Oilers’ president of hockey operations Kevin Lowe.  ”We need to get better immediately. That starts today with this announcement.”

The Oilers are currently eight points out of a playoff spot with seven games remaining and a record of 16-18-7.

MacTavish, who stepped down as head coach of the Oilers four years ago to the day, was named the new general manager while former Columbus Blue Jackets general manager Scott Howson will take over MacTavish’s role as senior vice president of hockey operations.

“I’m an impatient guy. We have to do some bold things to move this team forward in a rapid fashion,” said MacTavish. “We have to a better job arming our coaches and our core players with a group to get us to a highly-competitive level.”

Tambellini was named the team’s fourth general manager in 2008, succeeding Lowe.

The Oilers did not make the playoffs over Tambellini’s four-plus seasons with the organization.

Over the last three seasons, the Oilers have had the first overall pick in the NHL Draft, selecting Taylor Hall, Ryan Nugent-Hopkins and Nail Yakupov.

“We’re poised for greatness and our fans understand that,” said Lowe.

Tambellini joined the Oilers after 17 seasons as a member of the Vancouver Canucks management team, including three years as the team’s vice president and assistant general manager.

“Steve is a very good man who worked hard for the Oilers. I want to thank him for all his contributions,” said Lowe about Tambellini.

The Oilers host the Minnesota Wild on Tuesday at Rexall Place.

With Mark Streit reportedly unavailable, veteran Ryan Whitney could fit the bill. Depending on what the Edmonton Oilers want in return, Whitney could be a good fit with his hometown squad. Otherwise, GM Peter Chiarelli supposedly content with his current corps of blue-liners might add a less-expensive depth defenseman.