Arena project could cost up to $600 million: CMLC
Meghan Potkins, Calgary Herald
Updated: December 15, 2018
Calgary’s city council won’t decide until early next year whether public dollars will help fund the construction of a new arena to replace the aging Saddledome, but new estimates for the project suggest the total cost could reach $600 million.
The Calgary Municipal Land Corp. told a council committee Friday that a new arena would cost between $550 million and $600 million, based on estimates provided by contractors and discussions with the owners of the Calgary Flames.
The estimates don’t include the cost of land and represent a slight increase from the price tag floated previously for the “Plan B” proposal to locate an arena in the parking lot hinterland north of Stampede Park.
Flames’ owners haven’t said whether they concur with CMLC’s estimate, though Calgary Sports and Entertainment Corp. provided conceptual drawings of a 20,000-seat building by architectural firm Rossetti for CMLC to review.
“I’m very confident that we can deliver a really good building for the citizens of Calgary, as well as Calgary Sports and Entertainment, for that number — it’s a strong number,” said CMLC president Michael Brown.
Committee members also spent part of the meeting evaluating plans for Ernst and Young to conduct an economic impact assessment of the proposed entertainment and cultural district in Victoria Park, including a look at the potential benefits and drawbacks of using public dollars to expand BMO Centre and construct a new arena.
Some councillors have zealously used the term “event centre,” rather than “arena,” arguing it more accurately describes the “broader” uses a new facility could have.
Coun. Druh Farrell told committee members she wasn’t clear on the distinction between the two.
“I’m trying to understand the difference,” Farrell said. “I just wondered if it’s a nicer way of saying ‘an arena’?”
Several attempts to clarify the question in council chambers failed, but following the meeting Brown told reporters the new event centre could include pop-up gallery space and multi-purpose rooms that could be rented for performances and events.
“That’s what, in my mind, makes it an events centre,” Brown said. “I know there’s question marks, but if it was just an arena, that’s not enough. We need to have far more.”
The committee meeting saw a number of council members, including the mayor, question plans to conduct an economic impact assessment of the project.
Calgary Economic Development has hired Ernst and Young to carry out the study, which could be completed by late January. The firm said it plans to compare Calgary’s proposed district to “similar” developments in Edmonton, Columbus and Nashville.
But regardless of the study’s outcome, Mayor Naheed Nenshi pointed out there are at least three major capital projects that fall within the redevelopment boundary for Victoria Park where the entertainment district would be located.
Council will have to decide whether to allocate funds to an arena, an expansion of BMO Centre or an expansion of Arts Commons — or a combination of the three.
“What I’m really interested in is, what are the impacts of those singly? And what are the overlap impacts that multiply when you have them all in one district?” Nenshi said. “I think if we can figure that out, that really helps us make a decision.”
A number of funding sources could be available to bankroll the creation of an entertainment district. The city has approximately $300 million to spend on a major project over the next few years, says city manager Jeff Fielding.
An expansion of the convention centre could be eligible for provincial and federal funding. And future revenue from an extension of the community revitalization levy could be applied to one of the projects. The city could also borrow the money if council elects to take on more than one project at once.
Committee chair Jeff Davison said he wants council to fund an expansion of BMO Centre and help construct a new arena as part of a larger investment in an entertainment and cultural district.
“The investment the city’s going to place there is really showing we’ve got skin in the game here and it’s going to set the tone for the private sector to come to the table,” Davison said.
“I think Calgary needs a win. We have a strategic investment opportunity that’s before us and right now that’s where we need to look at starting to create value as a city. You can’t just roll over and do nothing.”
Council is expected to make a decision on which projects it will prioritize over the next four years at a strategic meeting on Jan. 28.
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Twitter: @mpotkins
Originally Posted by googe
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at the people who think they saved him money, I'm sure he could have sold the franchise and come out way ahead if he felt like it
