'Huge win for ratepayers': Flames agree to take on cost overruns, CMLC to be replaced as project manager
The City of Calgary released confidential material related to the new arena project Monday afternoon, but the mayor says council has already approved changes to the budget and the project manager.
In 2019, the city and Calgary Sports and Entertainment Corporation -- otherwise known as CSEC, the ownership group of the Flames -- agreed to split the cost of a $550 million arena 50/50.
Mayor Naheed Nenshi said they found that the budget would no longer work as they proceeded with detailed design work.
"It was built on an inverted bowl design which is very, very steep and it may not have worked in that particular piece of land and it would've been bad for accessibility. As we got into further design work, we realized there are some other things," the mayor told reporters Monday.
"For example, there weren't enough women's bathrooms and, in fact much to my surprise, the thought was that there may be too many luxury boxes and not enough seats for regular people."
The contract agreed to by council in 2019 included a clause that could see both sides split cost overruns up to $25 million.
Council has agreed to increase the city's share of the costs of the building by a maximum of $12.5 million, the mayor said. CSEC will also put up its share to match that city funding, but will also now be on the hook for any additional costs above the $25 million.
"Calgary Sports and Entertainment Corporation -- the Flames -- have agreed to take on all cost overruns and risk of constriction cost overruns. That is a huge win for ratepayers," said Nenshi.
In the just-released documents, the estimated cost for the arena is now $608.5 million. Of that, the city will pay $287.5 million (plus up to $10 million for prep work), while the Flames will pay $321 million.
CMLC OUT AS PROJECT MANAGER
The mayor also said the Calgary Municipal Land Corporation (CMLC) will no longer be the project manager of the new arena.
"CMLC will continue to be helpful, but if the Flames are taking on the risk of all the cost overruns, they want the ability to appoint a project manager of their choosing -- and I think that's a very legitimate request," Nenshi said.
A clearer picture of additional city costs is also coming to light, he added.
Site preparation and transportation costs for the area will also be the city's responsibility.
"There are the initial flood and site mediation costs that were already in there that we will be looking at capping at $10 million dollars. CMLC is also, as they would for any developer, doing some utility relocation and so on. That'll probably be about $4.5 million to $4.8 million," said Nenshi.
It's not clear what additional transportation costs will be, though the mayor said he believe them to be minor.
Council also ordered city administration to release confidential material about the deal to the public. That information is supposed to be available Monday afternoon, before council starts its debate on the changes.
CTVNews.ca Top Stories
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.
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.
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.
Boeing's financial woes continue, while families of crash victims urge U.S. to prosecute the company
Boeing said Wednesday that it lost US$355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft manufacturer as it faces increasing scrutiny over the safety of its planes and accusations of shoddy work from a growing number of whistleblowers.
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.
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."
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.