Calgary arena deal signed, site preparation set to start this year

Agreements to fund and build a new home for the Calgary Flames and revitalize the surrounding area have been signed and site preparation on the project is scheduled to begin this year, Alberta's transportation minister tells CTV News.

Devin Dreeshen says the utility work for the project will start in 2023 with the completion of the new event centre coming in late 2026 or early 2027.

"So, hopefully by 2026 or 2027 we will see this project completed," the transportation minister said.

"That's a very ambitious timeline, but the city, the Flames, the province of Alberta -- we all are lockstep in wanting to make sure that this can be developed as soon as possible."

While a Memorandum of Understanding (MOU) between the province, city, Calgary Sports and Entertainment Corporation (CSEC) and the Calgary Stampede was agreed to months ago, the final agreements have now been signed and executed.

"Our investment in the Rivers District is one that helps build Calgary and continues the momentum of revitalization in the downtown core," said Premier Danielle Smith.

The $1.22 billion project will include a new event centre, a community rink and transportation and utility work in the surrounding neighbourhood.

The City of Calgary will front most of the cash for the project -- $537 million -- while CSEC will put up $40 million initially and pay an estimated $316 million through yearly lease payments.

The province is pledging $330 million over five years, with most going towards the transportation and utility work surrounding the new rink. The Alberta government's funding will also cover some of the costs for the community rink and the will pay for the demolition of the Saddledome.

"This project will create better public gathering spaces, improved transportation networks, a downtown community rink and an arena to drive events and spur hosting and tourism opportunities," said Calgary Mayor Jyoti Gondek.

Calgary will cover most of any potential cost overruns on the project, while CSEC could cover overage on certain parts of the event centre. The province won't be on the hook for any costs above what has been pledged.

"Baked into the MOU is that the City of Calgary will be responsible for any cost overruns. So the maximum amount that the province is putting in is the $330 million," Dreeshen explained.