CALGARY -- The arena deal is now official.

Definitive agreements have been signed between the City of Calgary, the Calgary Flames organization and the Calgary Stampede for the construction of a new arena in Victoria Park,  Coun. Jeff Davison announced on social media Thursday morning.

"Onward to the next chapter of our city's history," he wrote.

Calgary Sports and Entertainment Corporation (CSEC) — which owns the Flames — and the City of Calgary will each pay half of the arena’s $550-million price tag, but the building and land will be owned by the city.

The Flames will cover the costs for operations, maintenance and repairs over the course of the 35 year lease. The team will not be able to leave the city for 35 years.

As part of the lease, the Flames will get a majority of the revenue from every event at the new arena. The city will then earn a ‘facility fee’ by taking two per cent of the ticket revenue from events, but that is capped at $3 million a year for the first five years.

The city will also receive $250,000 per year for the first 10 years from the naming rights to the arena.

Coun. Evan Woolley tabled a motion to take the city's portion for the arena and instead spend it on the Green Line, along with policing and upgrades to Calgary Housing, however that was defeated by a vote of 11-4.

In an interview with CTV News, Davison said, in so many words, that a deal is a deal.

"This was well within the terms and conditions that council approved back in July," he said, "And so we're happy to conclude the agreements on the basis of that."

Mayor Nenshi said the deal was about building more than just a new arena.

"Ultimately, I think we've come to a fair deal for Calgarians," Nenshi said, "but also, it isn't just about building an arena, but is in fact creating a cornerstone for the revitalization of East Victoria Park."

Construction on the 19,000-seat arena is expected to begin in 2021 just north of where the Sadddledome currently sits.