After months of closed door negotiations, new details about the Calgary events centre project have been released ahead of a public discussion on the issue.
The project has been on pause since April due to concerns of cost overruns — that have been estimated to be between $50 million and $60 million — and other issues regarding the initial agreement between the City of Calgary and the Calgary Sports and Entertainment Corporation (CSEC).
Some of the design concerns, according to Calgary’s mayor, were a lack of women’s bathrooms, too many luxury box suites and not enough regular seating.
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Work continues to reduce Calgary’s event centre overruns estimated at $50-60M
The mayor said increased construction costs across North America also played into the overruns.
“That led to a real big increase to the cost that the city had not contemplated and, frankly, I didn’t think the city should pay,” Nenshi said.
“The sides have been working really hard to both reduce that budget cost, while still making a facility we can be proud of, but to also figure out how to fund and finance the gap.”
To address cost overruns, Nenshi said both the City of Calgary and the CSEC would each be putting forward an additional $12.5 million. The clause was part of the original deal signed in 2019 and has already been approved by council.
However, Nenshi said that part of the new agreement would see CSEC take on the risk of all additional cost overruns moving forward and during construction.
In 2019, the city and CSEC agreed to split the $550-million cost to build the arena on lands to the north of the existing site of the Scotiabank Saddledome.
As part of the new deal between the city and CSEC, the Calgary Municipal Land Corporation will be removed as project manager and replaced with an organization of CSEC’s choosing.
“If the Flames are taking on the risk of cost overruns, they want the ability to appoint a project manager,” Nenshi said.
“I think that’s a very legitimate request.”
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Calgary Municipal Land Corporation not at event centre negotiating table
However, Nenshi said CMLC would remain involved with the area around the events centre in east Victoria Park, like the BMO Expansion project as well as the Victoria Park Stampede LRT Station redesign at 17 Avenue S.E. at Macleod Trail.
Although construction on the project was set to begin this year, Nenshi said he believes shovels could be in the ground as soon as early 2022.
“If you didn’t like this deal in the first place, you’re not going to like the new version,” Nenshi said.
“But if you believe the city did a really good job balancing public funding and public value, I think you’ll be very pleased to see what we end up with.”
Calgary city council is expected to discuss the deal in detail during a public debate during this week’s lengthy council meeting.
That debate is expected to take place late Tuesday or Wednesday morning.
More to come…
—-With files from Global News’ Adam Toy.