An agreement to build Calgary a new event centre to replace the aging Saddledome, along with surrounding amenities, was announced Tuesday.
Mayor Jyoti Gondek announced the agreement in principle between the City of Calgary, the province of Alberta, Calgary Sports and Entertainment Corporation (CSEC) and the Calgary Stampede.
In addition to a new home for the Calgary Flames, a community arena and other surrounding infrastructure like an underpass and street-level improvements were announced, all part of the city’s Rivers District masterplan.
Gondek called it a “generational investment in placemaking” on a “milestone day.”
“In fact, during the last 15 months of fostering trusting relationships with partner organizations and generating different scenarios for mutual success, we have been able to reach a place where we have exceeded the original goal,” she said.
The project is expected to span more than two city blocks and is expected to cost $1.22 billion.
The city will be putting up $537.3 million, or 44 per cent, to the project. The Flames ownership group is responsible for $356 million. The provincial government will be funding up to $330 million. The Calgary Stampede will contribute with a land swap.
“This announcement will help us put Calgary and the province back on the map for major concerts,” John Bean, president and CEO of CSEC, said, noting the organization is excited to have a community rink for skaters of all skill levels to enjoy.
“While there are many ups and downs to professional sports, there can be no doubt that our ownership group wants to win championships for all of our fans in Calgary.”
Bean said NHL commissioner Gary Bettman was excited to hear the news, developments that will add Calgary to the rotation of cities to host the NHL Draft and NHL All-Star game.
Bettman congratulated and thanked all of the parties for their “tireless efforts” in negotiating and signing the memorandum of understanding.
“And I extend special thanks to the terrific hockey fans of Calgary for their unflinching support of their team and our league,” the NHL commissioner said in a statement to Global News. “We can’t wait to drop the puck in a new, state-of-the-art arena and look forward to what this development will do for all Calgarians.”
Since 2015, the new deal is the third proposed plan for a Saddledome replacement.
Calgary city council unanimously voted in favour of the deal earlier in the day.
Calgary Stampede CEO Joel Cowley said that organization was excited to continue having the Flames as neighbours. He also looked forward to the addition of the new arena and amenities to the Stampede grounds that are also undergoing renovations.
“An event centre complex will truly create an anchor for the Rivers District and it will serve to foster and expedite the type of development that is needed to bring the vision, the culture and entertainment district to fruition,” Cowley said.
Being an agreement in principle, a construction timeline was not announced and design details are yet to be decided.
No added cost to city tax bills
Ward 1 Coun. Sonya Sharp said the funds from the previous deal, which fell apart at the end of 2021, are going to the new deal, with supplementation from the city’s so-called rainy day fund.
“No added taxes to (city) taxpayers – that’s the question, there’s the answer,” Sharp, who also chairs the event centre committee, said.
Premier Danielle Smith said the province’s contributions will go towards roads, bridges, LRT and other infrastructure for the area in three years of funding. Some provincial dollars will also go to the community arena.
The premier said there was a funding gap in the last budget for capital projects in Edmonton and Calgary, favouring the capital city.
“There’s been lots of proposals about how we can assist in revitalizing Calgary, especially in the downtown area, and we felt that this would be the absolute best way to do it,” she said.
The province declined the city’s request for $200 million to go to Calgary’s downtown revitalization, a downtown that has lost billions in property value and hundreds of millions in property taxes.
Smith said the culture and entertainment district surrounding the new event centre is expected to generate billions in economic activity in the coming decades.
But there was “one more hurdle” to surpass: approval from cabinet and the treasury board before the end of summer.
“That’s why on May 29, I’m hoping Calgarians give our UCP government a clear mandate to proceed with this arena deal,” Smith said.
When asked what happens if another party forms government, Sharp said she expects the province to honour the commitment.
“I think that we all very much realize that the money is coming from the Government of Alberta, regardless of the party,” Sharp said.
Mount Royal University political scientist Duane Bratt said Smith was “collapsing” the Alberta government and the United Conservative Party ahead of the May 1 writ drop.
“To be clear, this memorandum of understanding is with the government of Alberta, not with the UCP party,” Bratt said. “But we’ll have to see what the NDP position is on this and whether this becomes an election issue, as Smith hopes it does in May.”
Alberta NDP leader Rachel Notley said the party is “deeply committed” to improving the city’s downtown and the Flames’ contributions to community spirit.
“Still, we note that the cost of the latest proposed arena deal has doubled in size in 18 months and while the original version laid out a 50-50 private-public partnership, taxpayers are now responsible for more than 70 per cent of the cost,” Notley said in a statement.
With that increased commitment from the sitting government, Notley said the Opposition will be reviewing the deal “in greater detail” and seek feedback from Albertans directly in the immediate future.
“To be clear, this memorandum of understanding is with the government of Alberta, not with the UCP party,” Bratt said. “But we’ll have to see what the NDP position is on this and whether this becomes an election issue, as Smith hopes it does in May.”
In early 2022, city council decided to find a third party to gauge the Flames ownership group’s interest to reopen talks. In March of that year, the event centre committee was struck to and in October 2022, CAA ICON was hired by the city to serve as its deal structure advisors in the negotiations.
Shortly after the negotiations restarted with CSEC, Danielle Smith — newly sworn-in as premier — appointed MLA Ric McIver as provincial representative, but McIver did not have a seat at the talks.
A well-worn Saddledome
The Scotiabank Saddledome is the oldest active NHL arena that has not been significantly renovated.
The project broke ground in July 1981 and opened in October 1983. The iconic saddle-like shape was conceived by Graham McCourt Architects, becoming an icon of the city’s core.
At the Flames final news conferences for the 2022-23 regular season, McKenzie Weegar expressed dissatisfaction with the facilities that play home for the Flames, Calgary Hitmen, Calgary Roughnecks and Calgary Wranglers.
“I think we need a new rink,” he said on April 14. “The Saddledome obviously has some character but maybe a couple updates will make it a little bit better.”
Renovations in the mid-90s saw additions of luxury suits, added seats, a new restaurant and new offices for CSEC and Hockey Canada.
The lower bowl was also flooded during the 2013 floods, but was able to open for a concert in September of that year following two months of round-the-clock repairs.
–with files from Adam MacVicar, Global News