Mayor Jyoti Gondek says it appears the Calgary Flames intend to pull out of the multi-million dollar Event Centre arena complex project.
The mayor said in a series of tweets that Murray Edwards, chairman of Calgary Sports and Entertainment Corporation, informed her Tuesday that the Flames intended to 鈥減ull the plug on the deal.鈥�
鈥淲e have come to the conclusion where the Event Centre deal is not moving forward,鈥� Gondek said at a news conference.
鈥淭here was additional funding that had to be taken on by Calgary Sports and Entertainment Corporation. It appears that they are unable to make that financial commitment, following the approval of their development permit, so it would appear that they are ending the deal.鈥�
Tuesday鈥檚 news comes after several stop-and-start years around the project. The city and the Calgary Flames originally agreed to terms in 2019 on the Event Centre that would replace the Scotiabank Saddledome, the Flames鈥� home since 1983.
The original estimate of $550 million to build the 19,000-seat arena was to be split between the city and the corporation, which owns the Flames, the Western Hockey League鈥檚 Hitmen, Canadian Football League鈥檚 Stampeders and National Lacrosse League鈥檚 Roughnecks.
But Gondek said some costs, including 鈥渃limate mitigation鈥� of $4 million and 鈥渞oad/sidewalk right of way issues鈥� of $12 million were still being negotiated.
鈥淭he City came to the table to assist with $6.4m in roadways leaving $9.7m for the Flames,鈥� Gondek posted. 鈥淏ased on this gap of $9.7m, I am told CSEC is walking away from our deal.鈥�
Gondek said she is disappointed that 鈥渙n a project worth over $650m, to have one party walk away for 1.5 per cent of the value of the deal is staggering.鈥�
鈥淚 wanted Calgarians to be the first to know. I am as disappointed as all of you that this is the way things are ending.鈥�
The Flames did not immediately respond to a request for comment from The Canadian Press.
A city website says the Event Centre will be a year-round, gathering place for Calgarians.
鈥淚t will be home to the Calgary Flames, Hitmen and Roughnecks and all who cheer them on. The venue will attract major sport events as well as some of the world鈥檚 leading performing artists, creating a hub for connecting community, entertainment and sport.鈥�
鈥� The Canadian Press
