‘Nakedly political’: Mixed reaction on new Calgary Event Centre deal

After a deal has been reached in principle for Calgary to have a new event centre, reactions are mixed on what this means for the city.

The agreement includes the city, the Calgary Sport and Entertainment Corporation (CSEC), the Calgary Stampede, and the province of Alberta.

Around $1.2 billion will go towards the project, with the city pledging $537 million – 44 per cent of the total cost.

The province and CSEC combine to make up the remaining 56 per cent, with the former committing around $330 million on public transit and road improvements, site utilities, site reclamation and other supportive infrastructure.

The Event Centre itself will cost around $800 million.

Read More: Calgary agrees in principle to $1.2B Event Centre deal

Calgary Mayor Jyoti Gondek, after the announcement Tuesday, says there is “no increase to municipal taxes based on this deal.”

“The money that we are leveraging was earmarked for a previous deal. And we also use money from reserves. So there are no municipal tax implications, and we’re not taking on any debt,” she said.

“There’s a tool right now that keeps any tax uplift in that area. Once that tool is removed, Calgarians stand to benefit a great deal by the property taxes that are generated by this district that we’re creating. So it will benefit Calgarians well into the future.”

As a “citizen and taxpayer,” she remains “optimistic” about the contributions from the provincial government.

“We have demonstrated why it’s important to the provincial contribution, why it’s important for them to be a partner. We are creating some community building infrastructure here that they absolutely can and should be a part of,” Gondek said.

“So once again, regardless of who wins the election, we can demonstrate why this is a very good project to be a part of.”

Watch: Calgary signs $1.2B deal for new event centre

Deborah Yedlin, the CEO of the Calgary Chamber of Commerce, agrees and says it’s an important investment in the city and a sign the city is “willing to invest in ourselves and in our collective future.”

“Whether it’s hotels, it’s small businesses, it’s restaurants, it’s people who sell merchandise, this is actually been a long time coming,” she told CityNews.

Yedlin says this is important because the Rivers District and the areas around it have been “under-activated for a long time.”

“Now, it’s going to be activated 365 days a year. It won’t just be transactional,” Yedlin explained. “There’ll be a reason to go there 365 days a year.”

“That’s what’s really important. It becomes … another gathering place and anchors one end of … the east end. And I think that it’s a really great initiative forward for business. It’ll be good for the tax base. That’s good for taxpayers longer term,” she said.

“It’s really important because we know it will incent the development of more hotels. And we need that in order to support the convention center expansion. So all around, this makes a lot of sense.”

Edmonton Mayor Amarjeet Sohi would not comment on the politics and timing of the announcement. But he says he wants the city to be treated fairly.

“We didn’t get that as a city,” Sohi said Tuesday. “And we would love to sit down and compare notes and see where the gaps are and ask for similar support.”

Mayor Sohi added there’s a list of upgrades the city could use.

“Commonwealth Stadium, we need to build a soccer facility, we need to build a cricket facility, we need to build public infrastructure that will facilitate our arts and entertainment in Edmonton,” he said.

Political stunt?

Concordia University economist Moshe Lander, a “lifelong Flames fan” and “outraged taxpayer,” says this is a bad deal for Calgary, calling it a political stunt by the provincial government.

“To have a deal when the Flames are in their off-season when nobody’s really paying attention, with the provincial election maybe five weeks away, and now the announcement comes, and the premier is here in a Flames jersey to tout it. It was nakedly political,” he said.

The city and CSEC originally agreed to split the costs of building an 18,000-seat arena — estimated to be between $550 million and $600 million.

Lander says it is disappointing to see the final numbers, which are more than double the previous deal, and with CSEC paying $40 million upfront.

“The deal that fell apart was over about $50 million on a $600 million deal. And now, somehow, that’s doubled. Yet the Flames component has barely increased it. It’s a very, very bad deal for Calgary residents, for Alberta residents. But a great day to be a Flames owner,” he said.

Related Stories:

• City still on hook for around $11M in terminated arena deal

• CSEC pulling out of Events Centre deal: Calgary Mayor

Resurfaced audio of Alberta Premier Danielle Smith from 10 years ago has her saying she was “reluctant” to support arenas.

“I think that you would find that people are reluctant to support a proposal where middle-class taxpayers see a portion of their dollars that would go to support franchises where you do have, let’s face it, millionaire players and billionaire owners,” she said at the time.

However, on Tuesday, she was seen wearing a Calgary Flames jersey underneath her jacket while making a plea to Calgarians to vote for the United Conservative Party to ensure the deal goes through.

“After the election, the province’s contribution to this arena deal must be approved by the provincial cabinet and the Treasury Board before the end of summer,” she said.

“That’s why on May 29, I’m hoping Calgarians give our UCP government a clear mandate to proceed with this arena deal.”

When pressed whether the United Conservative Party was truly needed for the deal, Smith admitted it should happen “regardless.”

“When you look at how we’re intending to fund it, it would be over three years, $100 million a year. This is the kind of thing that the province invests in all the time and is the kind of thing that the city has been asking for is how we can assist in helping to revitalize downtown Calgary,” she said.

In a news conference Wednesday, Smith added the deal won’t be an election issue.

She told reporters at a UCP event in Calgary there won’t be any additional money beyond what was pledged.

Danielle Smith said on Wednesday that she doesn't want the Calgary arena project to be an election issue, a day after making it clear that it was an election issue. #yeg #yyc #ableg https://t.co/N5sQYa7zbW

— Courtney Theriault (@cspotweet) April 26, 2023

Mount Royal University economist Duane Bratt says her comments on Tuesday are a “contradiction” to her comments from 10 years ago.

“This is a direct contradiction to what the previous government under Jason Kenney or Rachel Notley’s position was. It’s also a contradiction to Danielle Smith’s own views when it came to the Edmonton rink,” he said.

He agrees the timing of the announcement is political, but Bratt says unless this becomes a key election issue, it won’t sway many voters.

“Critics of Smith on Monday are still critics of Smith today,” Bratt said.

Alberta NDP leader Rachel Notley alleges there is a confidential agreement between the parties that “identify additional financial liabilities by taxpayers” beyond the $800 million announced for the arena.

“The deal is being kept secret for six weeks, which just too coincidentally, lines up right after the provincial election,” Notley told reporters Wednesday.

“I believe that it is a result of Danielle Smith that the deal is being kept secret. Moreover, it’s Danielle Smith who’s trying to make it into an election issue. So if she wants to have an election conversation about it, Calgarians — Albertans need to see the details.”

Notley wouldn’t answer if she would let the deal go through, saying it is because of the lack of information.

“I can’t even get into those hypotheticals. We’re not even there. What I know is that Albertans, Calgarians. Me, we’re all being asked to sign on to a deal that Danielle Smith very intentionally has … kept hidden for six weeks,” she said.

CityNews has reached out to the Office of the Premier for comment.

-With files from Courtney Theriault, Darcy Ropchan, and Lisa Grant