‘I think that’s really regrettable’: Premier responds to dead event centre deal

Alberta’s premier is adding his two cents to the death of the deal for a new event centre in Calgary.

During Tuesday’s live COVID-19 update, Jason Kenney was asked about his thoughts on what went down between the City of Calgary and the Calgary Sports and Entertainment Corporation (CSEC).

Kenney said that he was “disappointed that the City of Calgary decided to change the deal at the last minute.”

The termination of the agreement was expected after CSEC notified the city on Dec. 21 of its intent to pull out of the deal.

WATCH: CityNews’ Jasmine Vickaryous reports on the CSEC pulling the plug on Calgary’s event centre deal, citing rising costs as the main factor. 

The city and the Flames agreed on an arena deal more than two years ago with the initial estimate of $550 million split between the two.

The cost estimate for the project had risen to $634 million.

“This is something that had been subject to negotiation for years. I understand the owners’ group pointed out we were facing pretty significant construction inflation. The city’s response to that was to add even more costs and more delays.

“I think that’s really regrettable.”

The Flames balked at additional costs for roadway and sidewalk infrastructure and climate mitigation the city added to the project since July.

Mayor Jyoti Gondek, who was elected in October, said in December that there was a gap of $9.7 million between the city and the team.

READ MORE:

• New arena deal dead as Saddledome continues to age

• CSEC pulling out of Events Centre deal: Calgary Mayor

• Environmental concerns surrounding new Calgary Event Centre

CSEC president and chief executive officer John Bean has said his company’s share of the new total would be $346.5 million compared to the city’s $287.5 million, and said the Flames bear the risk of rising costs in the future.

“Before Christmas, I spent about four days promoting investment in Alberta,” he said. “One of the big selling advantages was our high quality of life and our relatively low cost of living.

“One of the aspects that I featured in that selling pitch was all of the great new amenities being built here.”

That, he said, included the new arena in Calgary.

“I do think it’s part of the broader package of an effort to get Calgary’s mojo back, to get people moving here and to bring investment here — it’s to have world-class facilities,” he said. “I was encouraged that the city and the owners’ group had come to an agreement and I think it’s very regrettable that the city decided at the last minute to change the parameters.

“I just hope that they can reconsider and get shovels in the ground as soon as possible. The project itself would help to create jobs, which are much needed in the city.”

On Wednesday, Gondek responded to claims that she is to blame for the deal falling apart.

She says everything about the arena has come about following discussions among all city councillors.

“Anything Council decides to move forward with is what we do. Neither former mayor Nenshi nor I have the ability to single-handedly direct any type of negotiation,” she explained. “I should also point out that the second phase of negotiation on the Event Centre project ended in July of 2021 with a renegotiated deal.”

Gondek says the death of one deal might spark a new opportunity as the city looks to redevelop the area around the Saddledome.

“Now is the time to look very holistically at the district itself rather than trying to build a district around a single project. Calgary understands the passion that the players in the Calgary Flames organization have for the city and we are absolutely interested in continuing the legacy of hockey in the city.”