Calgary Flames likely to pull out of new arena deal, says Calgary mayor
CBC
Calgary's mayor says the Flames intend to pull the plug on the events centre deal, meant to replace the iconic Saddledome in Victoria Park.
At a press conference Tuesday evening, Mayor Jyoti Gondek said she spoke with Murray Edwards, primary shareholder of Calgary Sports & Entertainment Corp (CSEC), who informed her the events centre deal would not be proceeding forward.
"I'm not exactly sure what is driving their position, but I can tell you that we have done our best to be accommodating and unfortunately, they're unable to proceed at this time," she said.
Earlier this year, it was revealed the controversial $550 million deal between the city and CSEC was as much as $60 million over budget. The arena is now projected to cost $608.5 million.
During the summer, both parties agreed to pay an additional $12.5 million for the arena, and that CSEC would cover any more cost overruns.
Gondek said since she was elected mayor late-October, her office has been working with the Flames owners to mitigate any additional costs on the project.
After costs for climate mitigation, such as solar panels, and right of way issues for road and sidewalks were identified, new costs totalled $16.1 million.
The mayor said the city asked CSEC to contribute $9.7 million of that amount, in addition to what had already been agreed on.
"It appears that they're unable to make that financial commitment following the approval of their development permit, so it would appear that they are ending the deal," she said.
Gondek said there doesn't need to be a "blame game" over the decision and that she is unaware how much else CSEC was seeking from the city in total.
"The deal that was struck in July of this year indicated that additional costs would be borne by Calgary Sports and Entertainment Corp. So according to that contract, the city can't come back with additional funding," she said.
The event centre project went before the Calgary Planning Commission in November, who approved the development permit. That was one of the final hurdles developers needed to clear before the start of construction, slated for January 2022.
The mayor said she is willing to further discuss the matter with CSEC.
"I know our administration is incredibly dedicated to this project as well. Unfortunately, the brakes have been put on it, and it is indicated by Calgary Sports and Entertainment Corporation that it's come to an end. So if there is more of a conversation to be had, certainly willing to engage, we will see.
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