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New Calgary event centre deal finalized, construction expected to begin in 2024

Click to play video: 'Deal finalized for new event centre, home for Calgary Flames'
Deal finalized for new event centre, home for Calgary Flames
WATCH: The parties involved in building a new event centre in Calgary have finalised a deal that will build a new home for the Calgary Flames. As Adam MacVicar reports, work will begin later this year, with hopes of shovels in the ground by 2024. – Oct 5, 2023

Game on.

After multiple starts and stops in the road to replacing Calgary’s aged Scotiabank Saddledome, an agreement between the City of Calgary, the Alberta government, Calgary Sports and Entertainment Corporation (CSEC) and the Calgary Stampede has been finalized.

Thursday’s announcement follows April’s announcement of an agreement in principle.

“This project is moving forward,” Mayor Jyoti Gondek said.

The $1.22 billion deal includes a new event centre, a community rink, attached parking, an enclosed plaza, improvements to the public realm around the event centre in the Rivers District, and general improvements to area transportation and infrastructure.

“At this critical moment when we are seeing explosive population growth and increasing private sector investment and interest in our city, the confirmation that the event centre project is proceeding to design and construction phases will generate strong investor confidence in our Culture and Entertainment District,” the mayor said.

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The city’s portion of funding for the project will be coming from its reserves and from a $17-million, 35-year lease that escalates at one per cent annually, the city’s general manager of infrastructure services said.

“So over the term of the 35 years, the city will receive almost $750 million back in lease payments,” Michael Thompson said.

Of the estimated $1.22 billion development, the city will provide $537 million, the province is putting up $330 million, and CSEC’s share is $356 million.

Click to play video: 'Smith says Calgary Rivers District will create a ‘legacy that will live on for generations’'
Smith says Calgary Rivers District will create a ‘legacy that will live on for generations’

Premier Danielle Smith called the Rivers District a “Calgary legacy that will live on for generations.”

“Any investment in infrastructure is much more than the dollar figure attached to a project,” Smith said. “It’s more than a building and it’s more than a road. It’s an investment in making Alberta the best place to live and work and raise a family.”

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Officials said the Rivers District will create 1,500 permanent jobs and bring 8,000 new residents to the area.

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The mayor confirmed the agreement included a 35-year commitment from the Flames ownership group.

Click to play video: 'What’s next for Calgary’s Victoria Park following new event centre announcement'
What’s next for Calgary’s Victoria Park following new event centre announcement

CSEC president and CEO John Bean said getting this deal finalized was “really encouraging.”

“We’re delighted that we don’t have to be worrying about where’s our home for the next 35 years and we can get ourselves focused on getting this thing designed and built,” Bean told reporters. “And then maybe we get focused on winning a Stanley Cup in here as well.”

The design and construction process can now begin, with shovels expected to go in the ground next year. The city said they don’t yet have a timeline for when design renderings will be available.

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Minister of Transportation and Economic Corridors Devin Dreeshen said the province’s $330 million grant will go to infrastructure improvements in the Rivers District, the demolition of the Saddledome and half of the cost of the community rink.

“No provincial tax dollars will go to the building of a new arena,” Dreeshen said.

Dreeshen said the construction is expected to be completed in two or three years, with the Saddledome’s demolition to commence after the CSEC teams have moved into the new facility.

Sonya Sharp, chair of the city’s event centre committee and Ward 1 councillor, said the event centre is more than just a new arena.

“It’s downtown’s only community rink and a hub of culture and entertainment that will bring business, art and people together,” Sharp said. “It will also bring significant new mobility and street access improvements that will be essential to supporting the new businesses, residents and visitors that this project will attract.”

Click to play video: 'Calgary Mayor Jyoti Gondek on new event centre deal     '
Calgary Mayor Jyoti Gondek on new event centre deal     

Ongoing transparency promised

Following a request for proposals posed in June, CAA Icon was selected as the development manager for the project, Sharp said.

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Architecture and design firm Dialog and international firm HOK will be continuing as prime design consultants for the event centre, reprising their roles from the previous agreement between the Flames ownership group and the city.

Cana Construction and Mortenson will be the construction managers.

“We have an extremely capable and experienced team to help us deliver this important community infrastructure,” Sharp said.

The Calgary Chamber of Commerce called the public-private partnership an “important signal that we are investing in our collective future.”

“A new event centre will anchor our city’s entertainment district, putting us on the map for global events, further increasing opportunities for local businesses, creating jobs and growing the Calgary economy,” chamber president and CEO Deborah Yedlin said in a statement. “I applaud the collaboration between government and private sector.”

The Calgary Construction Association said it was “thrilled” to hear about the signed final agreements. It said the construction industry is poised to play its role in building the new arena, and is committed to help make sure the project is completed on time, within budget and to a high level of quality.

“This facility will not only provide a boost to the local economy through its construction, but also create follow-on jobs, investments and opportunities for businesses in the area,” Bill Black, president of the Calgary Construction Association, said in a statement.

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Sharp noted that the city and committee continue their commitment in providing transparency on the billion dollar project, and anticipates having updated documents and information posted to the city’s website soon.

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