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
Pedestrian, baby injured after stroller struck and dragged by vehicle in Squamish, B.C.
Police say a baby and a pedestrian suffered non-life-threatening injuries after a vehicle struck a baby stroller and dragged it for two blocks before stopping in Squamish, B.C.
Senate expenses climbed to $7.2 million in 2023, up nearly 30%
Senators in Canada claimed $7.2 million in expenses in 2023, a nearly 30 per cent increase over the previous year.
Demonstrators kicked out of Ontario legislature for disruption after failed keffiyeh vote
A group of demonstrators were kicked out of the legislature after a second NDP motion calling for unanimous consent to reverse a ban on the keffiyeh failed to pass.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
RCMP uncovers alleged plot by 2 Montreal men to illegally sell drones, equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Government agrees to US$138.7M settlement over FBI's botching of Larry Nassar assault allegations
The U.S. Justice Department announced a US$138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Pro-Palestinian protests roiling U.S. colleges escalate with arrests, new encampments and closures
The student protests of Israel's war with Hamas that have been creating friction at U.S. universities escalated Tuesday as new encampments sprouted and some colleges encouraged students to stay home and learn online, after dozens of arrests across the country.