The future of a new arena in Calgary will be decided in a matter of days, but some city councillors are wondering why the vote is happening less than a week after a proposed deal was released publicly.
On Monday evening, the city, Calgary Sports and Entertainment Corporation (CSEC) and the Calgary Municipal Land Corporation announced a tentative deal to build a $550-million event centre in Victoria Park. Council will have to decide whether or not to sign off on the deal on July 29.
“It’s an artificial deadline,” said Ward 11 Coun. Jeromy Farkas.
“The fact of the matter is this is a complex business deal and we need to be able to go back to our shareholders, our stakeholders, just as other parties have been able to do.”
Ward 8 Coun. Evan Woolley says he has asked “numerous times” why the timeline is so tight, and he has “not been given a clear answer on that.”
“This doesn’t mean this is a bad deal. In fact, on the face of it, this deal is a lot better than Edmonton’s,” said Woolley, pointing to the deal struck between the City of Edmonton and the Daryl Katz-owned Edmonton Arena Corporation (EAC). Katz also owns the Edmonton Oilers.
Calgary’s proposal has the Flames and city splitting the $550-million price tag down the middle.
The city would then pay an additional $12.4 million to demolish the Saddledome and the Flames would cover the maintenance, operating and reports for 35 years for the building.
The Flames would keep a majority of the revenue from all events at a new arena, except for two per cent of ticket revenue, which would go to the city.
Edmonton’s Rogers Place cost $483.5 million to build. The EAC forked over $19.7 million up front and will pay $112.8 million in rent over the course of a 35-year lease. The city paid $226 million and another $125 million is being collected through a ticket tax.
Ward 6 Coun. Jeff Davison, who is chair of the Event Centre Assessment Committee, said if councillors don’t vote in favour of the proposal on Monday, “there will be no deal to be found. It would be off the table.”
Calgarians wanting their comments included in the official council agenda and corporate record for the vote on July 29 have to have feedback in by July 26 at noon.