Advertisement

Calgary arena deal officially comes to an end after Dec. 31 deadline

Click to play video: 'City of Calgary has spent $11.5M to date on new Flames arena'
City of Calgary has spent $11.5M to date on new Flames arena
WATCH: The deal to build the next home for the Calgary Flames is officially over, and now Calgarians are getting a better idea of how much has been spent to date. Adam MacVicar reports – Jan 4, 2022

After an unexpected announcement that the Calgary Event Centre and arena project was put on ice just before the holidays, Global News has learned the deal between the City of Calgary and the Calgary Sports and Entertainment Corporation (CSEC) has officially come to an end.

A source with knowledge of the situation told Global News that city administration is currently working with both parties to wind down the project. A full report will be presented to city council within the next few months.

Read more: Calgary Flames pull out of new arena deal with city due to rising costs

Both the CSEC and the city had until the end of December to reach an agreement to determine when shovels could hit the ground for construction.

However, there’s no word yet as to if both parties had met between the time the announcement was made back on Dec. 21, 2021, and now.

Story continues below advertisement
Click to play video: 'Owners struggle with additional requirements for climate mitigation on new event centre: Calgary Flames president'
Owners struggle with additional requirements for climate mitigation on new event centre: Calgary Flames president

According to sources, written notice was needed to proceed to the construction phase — which wasn’t given by the time of the deadline — meaning there’s no opportunity for the arena deal to come back to fruition.

In a late evening tweet last month, Mayor Jyoti Gondek announced the group intended to “pull the plug” on the deal, and called the party walking away over 1.5 per cent of the deal “staggering.”

The mayor went on to say it appeared as though CSEC was “unable to make that financial commitment following the approval of their development permit,” which signalled the multi-million dollar deal to be quashed.

Read more: Coverage of costs: Flames, city explain cause of Calgary arena deal collapse

Early estimates pegged the entire project to cost roughly $550 million — which later proved to be much higher as a report released in summer 2021 pegged the project at $608.5 million.

Story continues below advertisement

Then come December, reports showed the total cost had ballooned to $634 million.

Click to play video: 'Gondek says Calgary Flames owners announced intentions to pull out of event centre'
Gondek says Calgary Flames owners announced intentions to pull out of event centre

 

CSEC responds

In an early Tuesday morning email, a spokesperson for CSEC said neither contributing party waived the conditions laid out in the project framework agreement, hence the termination of it.

“We have always believed that Calgary needs a new event centre,” stated John Bean, president and CEO of CSEC.

“However, under the current circumstances, we do not see a path forward that would create a viable partnership with the city, which is essential for a new event centre to become a reality.”

Global News has reached out to the City of Calgary administration for comment; however, as of the time of this publication, hadn’t heard back.

Advertisement

Sponsored content