The Calgary Flames’ parent company is exploring options for a new arena to replace the aging Saddledome and is considering an alternative proposal from the city.

A letter was sent to season ticket holders earlier this week and in it Flames’ President Ken King said they “have accepted an offer from the City to examine a Plan B.”

The Calgary Sports and Entertainment Corporation announced a plan last year for a multi-sport facility, called CalgaryNEXT, to be built on the edge of the Bow River in the city’s southwest.

The CalgaryNEXT plan in the West Village would include an arena, fieldhouse and other facilities to house the Flames, Stampeders, Roughnecks, Hitmen and Calgary Dinos under one roof.

The Saddledome, built in 1983, is one of the oldest buildings in the NHL and many believe it needs to be replaced if Calgary hopes to compete with other centres to host major events and concerts.

The Plan B proposal includes a new arena and event centre for Stampede Park, a fieldhouse near the University of Calgary and an overhaul of McMahon Stadium.

In the letter, King said he’s encouraged that the city is acknowledging the need for a new facility but said building separate venues might not be the best choice.

“While we question the logic of building separate structures and a temporary solution for McMahon, we are encouraged that the city is taking the need for new sports infrastructure seriously. We enter this process with an open mind but also a strong belief that CalgaryNEXT is the most logical solution that will benefit all Calgarians,” he said in the letter.

A city report released in April estimated that an all-in-one facility like CalgaryNEXT would cost $1.8 billion and that taxpayers would be on the hook for a large chunk of that.

In the letter, King disputed the city’s estimate and said that three independent contractors agree with the Flames’ estimate of $890 million.

“The City’s report stated that CalgaryNEXT would bear a total cost of $1.8 billion – a number more than twice what we have initially proposed. I assure you that the total cost of this facility, as confirmed by three independent contractors, remains $890 million as we’ve said all along. Many of the “additional” costs outlined in the report are those that will be incurred for the ultimate development of West Village, the fieldhouse and contamination clean-up with or without, the inclusion of CalgaryNEXT.”

Calgary Mayor Naheed Nenshi says its actually the Flames original proposal that is illogical when it comes to the cost.

"The letter that the Calgary Sports and Entertainment group sent to seasons ticket holders did not actually refute the city's assertions on the cost of Plan B, they just said ah, the city should spend that money anyways. It's $1.8 billion, that money does not exist, so if it's $1.8 billion and there's no refutation of that cost, it's hard for me to see how that proposal could go forward," said Nenshi.

The Calgary Sports and Entertainment Corporation said in the letter that a response to the city’s report is being prepared and that it will be shared with stakeholders when it is complete.

To view the letter, scroll the document below.