Calgary Flames withdraw from plan for new arena

Calgary Mayor Jyoti Gondek took to Twitter Tuesday night to make some startling revelations about the plan for a new arena that would have been the home of the Calgary Flames. Gondek said he met with the owner of the Flames, Murray Edwards, who told her he was pulling the plug on an agreement with the city.

"The deal struck in summer of 2019 envisioned a $550 m deal [with] costs split equally between CSEC ( Calgary Sports & Entertainment Corp) & the City. In addition, the City provided land, 90% demolition of the 'Dome, excess flood/site remediation, & levies. Total City contribution: $275m + $22.4m = $297.4 plus land." said Gondek.

Gondek added the City was then asked to cover cost overruns, something she did not support.

"The City came to the table to assist with $6.4m in roadways leaving $9.7m for the Flames. Based on this gap, CSEC informed me they are walking away from our deal," said Gondek.

"On a project worth over $650m, to have one party walk away for 1.5% of the value of the deal is staggering."

CSEC later issued a news release explaining their side of the story.

"CSEC's primary objective in pursuing the Event Centre Project has been to provide Calgarians a first class facility with an entertainment experience, not only for hockey, but for other events including concerts, comparable to other major cities. However, at this point, it is clear that the City and CSEC have been unable to resolve a number of issues relating to the escalating costs of the Project."

"Accordingly, as the City and CSEC have been unable to resolve these issues, CSEC has determined that there is no viable path to complete the Event Centre Project."

"We are deeply disappointed with the outcome."

The Flames current home, Scotiabank Saddledome, is close to 40 years old and has undergone a number of repairs and renovations over the years. The new arena, had it been built, was set to open in 2024.

2/6 The deal struck in summer of 2019 envisioned a $550 m deal w/costs split equally between CSEC & the City. In addition, the City provided land, 90% demolition of the 'Dome, excess flood/site remediation, & levies. Total City contribution: $275m + $22.4m = $297.4 plus land.— Jyoti Gondek (@JyotiGondek) December 22, 2021

4/6 I did not support that deal.

Since I was elected Mayor, Administration & my office have been working with CSEC to mitigate any additional costs. Two costs were identified: climate mitigation of around $4m and road/sidewalk right of way issues of $12.1m.— Jyoti Gondek (@JyotiGondek) December 22, 2021

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