Calgary Flames arena deal to include 35-year commitment to stay: city official
A $1.2-billion deal to replace Calgary's aging Saddledome with a new National Hockey League arena would come with a 35-year lease that includes a commitment from the owners of the Calgary Flames to stay in the city, says a city official.
The City of Calgary, Alberta government, Calgary Sports and Entertainment Corp. and Calgary Stampede reached an agreement in principle in late April.
The $1.2-billion price tag for the event centre project includes $800 million for the new arena in addition to parking, transit improvements, a new community rink and an enclosed plaza.
Council's event centre committee met Monday to receive a public presentation from city administration on the project and ask some of the questions that have come up since it was announced.
Michael Thompson, general manager of infrastructure services, said the city continues to negotiate the final agreement and hopes to have it complete by the end of summer.
"The parties have agreed to the major terms: the scope of what's being built, the estimated costs and the financial contributions," he told the committee.
The city, he said, would contribute about $515 million from its reserves and another $360 million from its working capital toward a long-term lease with the Calgary Sport and Entertainment Corp.
Thompson said CSEC would pay $40 million upfront.
It would then pay $17 million annually in lease payments, increasing by one per cent each year, for another $708 million over the 35 years.
The city will also sell off five parcels of land in the area, with CSEC having the first opportunity to bid on them.
Calgary's Chamber of Commerce says it supports the deal and believes city council will get it done.
"There's a sense of a commitment to redevelop those lands," said president Deborah Yedlin.
"There's opportunity, from a hotel standpoint, to really capitalize on the visitor economy that is, you know, really getting a lift from the expansion of the BMO Centre."
Coun. Andre Chabot said there are concerns from some Calgarians that a lease could be terminated.
"I know there are other provisions in that agreement that we can't maybe reveal at this point, but it's a question of certainty from our perspective and risk aversion," he said.
Thompson agreed it's important for the city to consider its risk.
"We've got a commitment from Calgary Sports and Entertainment Corp. that they will be staying in Calgary for 35 years as part of this agreement," he said.
One sports economist at Concordia University says the new details prove the deal is not as beneficial for the city as it is for the Flames.
"It was never a good deal for the city," said Moshe Lander.
"The only thing the city knew was that they had to replace the arena. But once you know that you have to replace the arena, the leverage shifts to the ownership group. They basically held the city over a barrel and now we're seeing the results."
No one from CSEC could immediately be reached for comment.
It owns the Flames in the NHL, the Wranglers in the American Hockey League, the Hitmen in the Western Hockey League and the National Lacrosse League's Roughnecks.
The Alberta government is not contributing directly to the arena but has said it plans to fund up to $300 million on public transit and road improvements, site utilities, reclamation and other supportive infrastructure as part of the deal.
The province would also contribute $30 million to cover half the cost of the 1,000-seat community rink if its share is approved by the provincial cabinet and the Treasury Board before the end of summer.
With files from The Canadian Press
CTVNews.ca Top Stories
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
"It's a bit of a complicated pattern; we've got a lot going on," said Jennifer Smith of the Meteorological Service of Canada in an interview with CTVNews.ca on Wednesday. "[As is] typical with weather, all of these things are related."
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Police tangle with students in Texas and California as wave of campus protest against Gaza war grows
Police tangled with student demonstrators in Texas and California while new encampments sprouted Wednesday at Harvard and other colleges as school leaders sought ways to defuse a growing wave of pro-Palestinian protests.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.