With key deadline passed, Calgary arena deal officially ends

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With a key deadline passing, time is running out for the city and the owners of the Calgary Flames to salvage a deal to build a new arena to replace the Saddledome.

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Both parties were required to provide formal written notice by Dec. 31 in order to proceed with the construction phase of the $ 608.5 million project, but the deadline passed without any notice being provided, a senior official says. from the city.

City staff are now expected to work with both parties to end the project and will report to city council in the first quarter of 2022.

About $ 23 million has been spent on the project to date, with the city funding $ 11.5 million of the cost, according to the city’s estimates.

The city and Calgary Sports and Entertainment Corp. (CSEC) first signed an agreement in 2019 to share the cost of a new event center in East Victoria Park. The original price was set at $ 550 million, but the cost has since increased.

The deal was significantly updated last July after budget adjustments pushed the total cost to $ 608.5 million. The city and CSEC each pledged an additional $ 12.5 million at the time and the Flames agreed to assume any further cost overruns.

Since then, the cost of the project has only increased, with the most recent estimate exceeding $ 630 million, according to the BBRI.

News of the deal’s failure emerged late on December 21, just days before the two sides confirmed their approval to move to the construction phase.

More soon…

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