City of Calgary, CSEC formally resume talks on new event centre deal

The City of Calgary and the Calgary Sports and Entertainment Corporation (CSEC) have formally re-entered talks “with a fresh start” to build a new event centre.

The previous deal, which was made in 2019, fell apart in late December 2021, when the estimated cost of the project rose and CSEC, which owns the Calgary Flames, withdrew.

Shovels were scheduled to hit the ground this year for a 19,000-seat hockey arena and concert venue to replace the Saddledome, which has been the home of the Flames for 39 years.

The initial estimate of a new arena was $550 million split between the two parties, but that figure increased to $634 million.

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At the time, questions were raised by several people about the collapse of the agreement with CSEC, with some asking whether Calgary Mayor Jyoti Gondek played a direct role in the deal being cancelled and if she somehow made a unilateral decision.

Gondek did not comment on the suggestion, instead referring the questions to the city’s legal counsel.

“I can confirm there was no decision to be made on this stage-gate,” said City Solicitor Lynn Davies. “If one party did not want to move through, then we could not move through this stage-gate.”

“I think that’s about as clear as it can get,” Ward 14 Coun. Peter Demong reacted.

However, hope for a new deal was sparked in late May after the city appointed a third-party group made up of three executives from the real estate industry to negotiate with CSEC.

“We’re at the beginning of an important stage,” said Ward 1 Coun. Sonya Sharp, who is also chair of the Event Centre Committee. “A new event centre for our city will attract investment and international events. It will have enormous benefits for visitors and for Calgarians. We look forward to working with CSEC for our mutual benefit and for a result that works for everyone.”

CSEC president and CEO John Bean says the third party, made up of Guy Huntingford, John Fisher, and Phil Swift, was crucial in rekindling talks to reach a new deal.

“We appreciate the efforts of Guy, John and Phil,” said Bean. “All parties share a collective desire to see a new event centre constructed in Calgary. We look forward to discussions with the city to see if we can find an acceptable path forward.”

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Now that formal discussions have restarted, the third party has “fulfilled their mandate” and will no longer mediate talks. The City of Calgary says it will be represented by CAA ICON, with local support from Altus Group’s Calgary office going forward.

The city describes CAA ICON as “experts in structuring deals for major sports and entertainment venues in North America and Europe.”

“CAA ICON has experience representing municipalities, as well as sports teams, in structuring deals and developing financing plans for event centres, stadiums and other public assembly facilities. They bring insight from many successful projects in a broad variety of markets,” the city said in a release.

“This new team has the right expertise to get the best outcome possible for Calgary,” said Sharp. “Our environment has changed quite a bit over the past couple years. With everything we have learned, I am confident that CAA ICON representing the city is our best path forward and reflects how important this project is.”

The city and CSEC agree “time is of the essence,” indicating they will be pursuing a new event centre deal as soon as possible, while keeping both sides happy.

“I must emphasize this point,” said Stuart Dalgleish, general manager of planning and development services for the city. “We must do this right, which means we will need space and we will need time to work on a successful agreement. We will be keeping our discussions confidential and reporting to the Event Centre Committee when the time is right.”

–With files from The Canadian Press