What about the bus barns? Questions linger after arena deal

CALGARY (660 NEWS) — Now that the dust has settled on Calgary’s $550 million arena deal, there are still some questions swirling around about the specifics.

In particular, the fate of the Victoria Park bus barns is not known — nor if the city will be on the hook for any costs.

“There are costs that we are unsure about right now,” said Ward 5 Councillor George Chahal.

Chahal, one of the four councillors to oppose the deal on July 30th, raised the issue with a lack of information around land acquisitions tied to the deal.

RELATED: ‘A history-making day’: Calgary council approves new arena

As of right now, the Calgary Flames ownership group, Calgary Sports and Entertainment Corporation (CSEC), has first right of refusal on the plot of land where the bus barns sit.

If CSEC ends up taking it over, there’s a chance the City of Calgary could be paying to remediate the land, much like how they will front 90 per cent of the cost to demolish the Saddledome.

The Calgary Municipal Land Corporation estimates the land, which lies along the Elbow River in the southeast, is worth $85 million, and CSEC has ten years to exercise their right.

In addition, the city would then also have to pay to build a new transit facility.

“We’ve really got to know what we’re dealing with, in having a clear understanding of what our lands are valued at when we proceed forward in a deal of this magnitude,” said Chahal.

The question of remediation also harkens back to the failed CalgaryNEXT proposal, with one of the concerns around how much the city would have to pay to remove creosote from the ground.

READ MORE: Economist sees new Calgary arena as good investment

Chahal added this type of concern stems back to the 2026 Olympic bid debate and points to a flaw in the whole deal.

“Calgarians spoke and were concerned about the number of these transactions occurring and not having a clear understanding of where we were headed,” the councillor said. “It’s important that when we do our financial analysis that we have all costs and all revenues included. And that was a serious concern of mine, that I believe they weren’t presented.”

Following the deal’s approval, Calgary Flames President and CEO Ken King was mum on what, if any, plans they had for the area.

“We have lots of them, and they are coming to a show near you soon,” said King. “Our greatest goal was not to acquire land; our greatest goal was to do what we could do to help fulfill the CMLC’s vision of developing the Rivers District.”

But these questions are too much for Chahal, who promised to keep asking tough questions until it becomes more clear.

“We still need to ensure that Calgarians are protected as we move forward.”