The Calgary Flames are pulling the plug on a project that would've brought the city a new NHL arena.
On Tuesday, Calgary Mayor Jyoti Gondek announced on Twitter that Calgary Sports and Entertainment Corporation's primary shareholder Murray Edwards informed her of the franchise's intention to terminate the new arena deal.
Gondek added that the Flames are backing out of the deal due to an additional fee of about $9.7 million concerning climate mitigation and road/sidewalk right-of-way issues.
"On a project worth over $650 million, to have one party walk away for 1.5% of the value of the deal is staggering," Gondek wrote, adding that she's "disappointed."
CSEC and the city originally struck a deal in July 2019 for an arena that would cost $550 million split equally between the two parties. The city was also to provide additional funds, including covering 90% of the cost to demolish the Scotiabank Saddledome. Gondek, who wasn't elected mayor until October 2021, says she supported the initial deal.
The project hit some snags from there. In April 2021, it was put on hold by the City council over budget concerns. A new deal was agreed to in July, with the cost increasing by over $50 million. Gondek, however, says she didn't support this.
Calgary Municipal Land Corporation was removed as the development manager as part of the new deal. Both the city and the NHL franchise added $12.5 million for cost overruns, plus an additional $10 million from the city in event management costs. The two parties set a target date of early 2022 for construction to begin prior to this most recent complication.
Before Gondek was elected mayor, she served as a city councilor and a member of the city's planning commission. Former Mayor Naheed Nenshi was in office during the original negotiation of the deal.
Scotiabank Saddledome has been the home of the Flames since 1983. Excluding the Seattle Kraken's Climate Pledge Arena, which underwent extensive renovations before the club debuted this year, the Saddledome is the second-oldest building in the NHL, trailing only Madison Square Garden.
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