Alberta’s government, the City of Calgary and the Calgary Exhibition and Stampede have signed a memorandum of understanding (MOU) to enable the construction of a new world-class arena and event centre.
Under the MOU entered into by the province, the provincial government will not be investing in the construction or operation of the arena itself.
"Those costs will be borne by the city and Calgary Sports and Entertainment (CSEC) pursuant to a separate MOU between those parties. The province will instead contribute up to $300 million, the majority over the next three years, primarily committed to road and bridge construction, LRT connection, site utilities, site reclamation and other supportive infrastructure," the province stated.
City of Calgary Mayor Jyoti Gondek said that this project is another signal to the market that Calgary is making strong investments in its future.
"The partnership approach we have taken accomplishes two things: we are building an event centre, and we are also creating the public amenities needed within the Rivers District to enhance the quality of life for all Calgarians," she said.
According to the City of Calgary, the city's contribution is 44 per cent of the total cost with the Province of Alberta and CSEC contributing the remaining 56 per cent.
A break-down of the costs is as follows:
The City of Calgary:
- $537.3 million to fund the development of the Event Centre, parking structure, enclosed plaza, and 25 per cent of the community rink.
Calgary Sports and Entertainment (CSEC):
- $40 million upfront and $17 million per year (increasing 1 per cent per year) over 35 years to offset Event Centre costs, parking, the enclosed plaza, and 25 per cent of the community rink
o $356 million in present value; $750 million+ over the 35-year term
- $1.5 million per year to community sports
o $25 million in present value; $52.5 million over the 35-year term
- $330.0 million
o $300 million to fund transportation improvements, land, infrastructure and site enabling costs, including off-site and on-site utility servicing costs, public realm and site clearing/demolition
o $30 million to fund 50 per cent of the community rink
"For every $1.00 invested by The City of Calgary, the Province and CSEC together will invest $1.28. CSEC, in addition to their Event Centre investment, will continue to make community sports payments, to the tune of $1.5 million annually," the city stated.
John Bean, The President and CEO of the Calgary Sports and Entertainment Corporation echoed Gondek's sentiment.
"We are proud and excited to be part of the group to have established a clear path forward that provides a new home for Calgary’s sports teams; the venue to host A-class concerts and events; and a community gathering place, for many years to come."
As part of the agreement, the province would also partner with the city to build a new 1,000-seat community arena neighbouring the main arena that will serve youth and amateur hockey. The province’s commitments in this agreement are subject to cabinet and Treasury Board approval by August 2023.
The City of Calgary administration will begin formal discussions on definitive agreements with all parties, which is expected to be underway through spring and summer 2023.
The project team is preparing to begin the design and development of the Event Centre, as well as the supporting infrastructure in the area.