CALGARY, ALTA. – The City of Calgary announced it has released the details of the agreements signed with the Calgary Sports and Entertainment Corporation (CSEC), Calgary Municipal Land Corporation (CMLC) and the Calgary Stampede for the design and build of a new Event Centre in east Victoria Park.
The event centre and surrounding area will be a year-round, permanent gathering place for programming and activities like concerts, assemblies, festivals and amateur and professional sporting events.
The announcement fulfills commitments the city officials made to share Event Centre agreements signed by officials on behalf of Calgarians when finalized.
“We are proud to post highlights of these agreements, well as PDF texts of the major contracts, on a new agreements webpage and updated FAQ on Calgary.ca/eventcentre,” read a release from the city. “These agreements define how the new Event Centre will be built, owned, and managed, as well as ensure that costs, obligations and benefits are well-defined.”
The agreement documents provide details about cost overruns, flood mitigation costs, who would pay for a community rink attached to the arena and construction timelines.
The CSEC, which owns the Calgary Flames, and the city plan to split the costs of the $550-million arena and aim to break ground in July 2021. The Calgary Municipal Land Corporation (CMLC) will be leading planning and construction of the project. CMLC will conduct public engagement during 2020. Construction of the new arena is expected to take approximately three years.
The cost of an additional rink inside arena would also be split between the Flames ownership and the city unless the costs took the city’s contribution over $275 million. At that point CSEC would have to pay the extra.
The site is located immediately north of Stampede Park on a two-block site. The approximate 2.9-hectare site is currently owned by the Stampede and used for parking and roadway. The Saddledome will be demolished after occupancy of the new Event Centre.
The agreement states that in the event of budget overruns, the city and CSEC will first try to find savings before considering putting more money into its construction.
The agreement also has an option for one of the parties to provide up to $25 million for cost overruns, which would compel the other party to spend half that amount in return. The city portion would be subject to council approval.
Once complete, the city is on the hook for major structural repairs, while CSEC covers everyday maintenance. The city an option to kill the agreement if structural repairs exceed $55 million and council won’t approve the repair funding. Both parties will pay the CMLC an ongoing fee that adds up to $8 million over five years.