Calgary council approves changes to arena project budget and manager, new rendering released
Calgary council has signed off on changes to the city's new Event Centre project, which includes a higher budget and a new project manager.
Documents released earlier this week show the estimated price tag for the arena has increased to $608 million, $58 million higher than what was agreed to in 2019.
Council was asked to vote on whether to approve an update budget framework that sees the city's share of the building capped at $287 million. The Calgary Sports and Entertainment Corporation -- the group that owns the Flames, otherwise known as CSEC -- will put $321 million towards constructing the building and will be responsible for any additional cost overruns, should those occur.
Because CSEC is taking on more risk, administration said, it should be able to pick its own project manager to replace the Calgary Municipal Land Corporation.
Council voted on seven different recommendations in agreeing to the updated deal. All seven passed with varying vote totals.
"By most measures, this new deal is worse than it was before," said Coun. Jeromy Farkas, who is also a mayoral candidate in the upcoming municipal election.
"While it's good the taxpayers aren't going to be on the hook for more than another 12 and a half million dollars, it exposes us to a lot of risk by giving over control of the project management," he said.
Though the city's funding of construction itself will be no higher than $287 million, there are additional costs related to the project and planning in the area.
Factoring in flood mitigation and prep work, mobility costs to tie in with the community and the cost to demolish the Saddledome, the city's final bill will be around $322 million.
"The only cost overruns CSEC is willing to cover are for the building. Let's not forget there's a build realm around that building. What will we be responsible for into the future?" said Coun. Jyoti Gondek, another mayoral candidate who voted against the changes Wednesday.
Coun. Jeff Davison, who is also seeking the mayor's chair in October's election, said the deal today is a positive step forward for the city.
"This deal is a way better deal. The Flames organization will pay more, yet we own 100 per cent of the facility," he said.
An application for the new arena's development permit will have to be submitted by August 3 in order to begin construction in January 2022.
CTVNews.ca Top Stories
BREAKING Legendary hockey broadcaster Bob Cole dies at 90: CBC
Bob Cole, a welcome voice for Canadian hockey fans for a half-century, has died at the age of 90. Cole died Wednesday night in St. John's, N.L., surrounded by his family, his daughter, Megan Cole, told the CBC.
Harvey Weinstein's 2020 rape conviction overturned by N.Y. appeals court
New York's highest court on Thursday overturned Harvey Weinstein's 2020 rape conviction, reversing a landmark ruling of the #MeToo era in determining the trial judge improperly allowed women to testify about allegations against the ex-movie mogul that weren't part of the case.
2 teens charged in Halifax homicide: police
Two teenagers have been charged with second-degree murder in connection to an alleged homicide near the Halifax Shopping Centre earlier this week.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment that is banned at Queen’s Park.
12-year-old hippo in Japan raised as a male discovered to be a female
When Gen-chan arrived at a zoo in Japan in 2017, no one questioned whether the then-five-year-old hippopotamus was a boy. Seven years later, zoo staff made a surprising discovery: Gen-chan, now 12, was female.
Honda to get up to $5B in govt help for EV battery, assembly plants
Honda is set to build an electric vehicle battery plant next to its Alliston, Ont., assembly plant, which it is retooling to produce fully electric vehicles, all part of a $15-billion project that is expected to include up to $5 billion in public money.
'Deep ignorance': Calls for Manitoba trustee to resign sparked after comments about Indigenous people and reconciliation
A rural Manitoba school trustee is facing calls to resign over comments he made about Indigenous people and residential schools earlier this week.
CTE: Researchers believe widespread brain injury may contribute to veteran suicide rate
Researchers are working to better understand if some Canadian military veterans may be suffering from Chronic Traumatic Encephalopathy, also known as CTE -- a disorder previously found in the brains of professional football and hockey players after their death.
1 arrested in northern Alberta during public shelter order
Residents of John D'Or Prairie, a community on the Little Red River Cree Nation in northern Alberta, were told to take shelter Thursday morning during a police operation.