Cost Of New Calgary Arena Would Be Split Between Flames, City
The cost of the proposed new $550M (all figures C) arena in Calgary "would be split" between the city and the Flames, with the city "retaining ownership of the new building in Victoria Park," according to a front-page piece by Meghan Potkins of the CALGARY HERALD. The Flames will "carry the operating and maintenance costs for the new facility for the duration of a 35-year agreement." The $275M cash contribution from the city "exceeds amounts discussed in previous rounds of negotiations" in '16 and '17, but proponents point out the deal "would also provide revenue to the city in future years." Under the proposal, the city would collect a 2% tax on "every ticket sold at the arena for the lifetime of the agreement," estimated at $155M in revenue over 35 years. The city "would also receive a share from the naming rights for the new building." The Calgary City Council is "expected to vote to either ratify or reject the agreement" next Monday. The agreement "would ensure that Calgary Sports and Entertainment Corp. will not relocate the Flames for the duration of the 35-year term." Council members "met behind closed doors for more than two hours" yesterday afternoon to "discuss the tentative agreement" between the city, the Flames and the Calgary Stampede (CALGARY HERALD, 7/23).
LOCATION, LOCATION: The GLOBE & MAIL's Justin Giovannetti notes the "proposed 19,000-seat arena could be built on a parking lot currently used during the summer months by the Calgary Stampede." Construction is "not expected to start" before '21 at the site. The new arena "would be only a few hundred metres from the nearly 36-year-old Saddledome." Talks to replace the Saddledome have "continued for years and have proceeded in fits and starts." City officials and Flames ownership have "walked away from the negotiating table at various times, citing the cost of proposed projects and unproductive conversations" (THE GLOBE & MAIL, 7/23). SPORTSNET.ca's Eric Francis notes the proposed deal would be a "huge boon for the Flames brand as players are more apt to want to play for the club, and the team will be able to generate revenue from far more streams" than the Saddledome allowed (SPORTSNET.ca, 7/23).