Post by mikecubs on Jul 23, 2019 3:03:33 GMT -6
City to pay for half of arena costs in proposed deal
The cost of a new $550-million arena would be split between the city and the owners of the Calgary Flames, with the city retaining ownership of the new building in Victoria Park.
According to the terms of the proposed deal — which will have to be ratified by a vote of council next week — the Flames will carry the operating and maintenance costs for the new facility for the duration of a 35-year agreement.
The $275-million cash contribution from the city exceeds amounts discussed in previous rounds of negotiations in 2016 and 2017, but proponents point out the deal would also provide revenue to the city in future years.
Under the proposal, the city would collect a “facility fee,” a two per cent tax on every ticket sold at the arena for the lifetime of the agreement, amounting to an estimated $155 million in revenue over 35 years.
The city would also receive a share from the naming rights for the new building, equivalent to an estimated $2.5 million over 10 years.
“Let’s cut to the chase. This is a good deal for Calgary,” Mayor Naheed Nenshi said Monday evening. “For some years now, I have been saying that any investment of public money in this project must come with public benefit. This deal does that.”
Calgarians will have seven days to digest the proposed deal and offer feedback before July 29, when council is expected to vote to either ratify or reject the agreement.
The agreement would ensure that Calgary Sports and Entertainment Corp. will not relocate the Flames for the duration of the 35-year term.
If approved, the Calgary Municipal Land Corp. is expected to lead construction and public consultations on the design of the building.
Sammy Hudes
@sammyhudes
· 7h
Replying to @sammyhudes
6:49 …
Meghan Potkins
✔
@mpotkins
Replying to @mpotkins
And they're baaaaaack. Finally. #yyccc
Sammy Hudes
@sammyhudes
BREAKING: We have the breakdown of the deal. It’ll see the city and the Flames each pay $275 million for an arena to replace the Saddledome. #yyccc
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7:58 PM - Jul 22, 2019
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Council members met behind closed doors for more than two hours Monday afternoon to discuss the tentative agreement between the City of Calgary, the Calgary Flames and the Calgary Stampede.
At a news conference Monday evening, Flames vice-chair Ken King called the process the “longest race ever to get to the starting line” and pointed out that a number of hurdles remain before a deal can be finalized — including council’s vote next week.
“If you look carefully at the structure of the deal, you will see significant pools of funds coming back to the city and that’s what’s different,” King said.
“We didn’t hoodwink anybody, we didn’t trick anybody. Just look down the long list of opportunities that are now to the benefit of the city.”
Under the proposed agreement, CSEC will also increase the amount it funds local amateur sports to $75 million.
King was joined at the city hall news conference by Nenshi and Stampede CEO Warren Connell. The Stampede has been involved in negotiations for the new facility since the Stampede owns the land in Victoria Park where a new arena would be built.
One key additional cost to the city will be the demolition of the Saddledome: the city will pay $12.4 million, or 90 per cent of the total cost.
The deal also includes an option that would allow CSEC to acquire valuable city lands for redevelopment, including lands at the site of the former Enoch Sales house and Victoria Park bus barns along the banks of the Elbow River. The option on Enoch Sales would expire on opening day of the arena. The option on the bus barns would expire after 10 years.
Coun. Jeff Davison, chair of the city’s event centre assessment committee, said council could spend the next week talking to Calgarians about the proposed deal before the vote on July 29.
“We don’t need a $2-million engagement plan to take feedback in,” Davison said. “Obviously, people have access to councillors’ emails and phone and social media channels. You can always submit letters through the clerk’s department, which would be accepted as part of the corporate record. So there’s many, many ways that the public can let us know how they feel about this.”
Late Monday night, Coun. Evan Woolley brought forward a motion to delay a final vote on the arena deal in order to extend the time available for public consultations.
Davison urged his council colleagues to reject the delay, suggesting it could imperil the agreement reached between the parties.
“You should know that if this passes this deal is done tonight and you will forever be known as the council that likely lost the Calgary Flames,” said Davison.
The motion failed in a 4-9 vote. Only councillors Woolley, Jeromy Farkas, Druh Farrell and Peter Demong voted in favour.
Earlier in the afternoon, when asked about the timing of the proposed arena deal arriving at the same time as city council prepares to cut $60 million from municipal budgets, Davison said council must deal with “conflicting” priorities all the time.
“We’re not oblivious. The timing is not ideal. We know there is a lot of things going on with respect to the budget,” said Davison. “But when you really look at $60 million worth of cuts, it’s really talking about two to three per cent of our operational budget. The sky is not going to fall for two to three per cent.”
This will be the third attempt at reaching a deal to replace the Saddledome in the past four years.
Talks last broke down in 2017 amid an ugly dispute between the city and the Flames over the terms of a potential deal for a new arena in Victoria Park. The city had offered to pay one-third of the cost of a new arena, approximately $185 million, but the Flames were looking for the city to pay closer to half the cost.
calgaryherald.com/news/local-news/council-could-vote-on-arena-deal-as-early-as-next-week
The cost of a new $550-million arena would be split between the city and the owners of the Calgary Flames, with the city retaining ownership of the new building in Victoria Park.
According to the terms of the proposed deal — which will have to be ratified by a vote of council next week — the Flames will carry the operating and maintenance costs for the new facility for the duration of a 35-year agreement.
The $275-million cash contribution from the city exceeds amounts discussed in previous rounds of negotiations in 2016 and 2017, but proponents point out the deal would also provide revenue to the city in future years.
Under the proposal, the city would collect a “facility fee,” a two per cent tax on every ticket sold at the arena for the lifetime of the agreement, amounting to an estimated $155 million in revenue over 35 years.
The city would also receive a share from the naming rights for the new building, equivalent to an estimated $2.5 million over 10 years.
“Let’s cut to the chase. This is a good deal for Calgary,” Mayor Naheed Nenshi said Monday evening. “For some years now, I have been saying that any investment of public money in this project must come with public benefit. This deal does that.”
Calgarians will have seven days to digest the proposed deal and offer feedback before July 29, when council is expected to vote to either ratify or reject the agreement.
The agreement would ensure that Calgary Sports and Entertainment Corp. will not relocate the Flames for the duration of the 35-year term.
If approved, the Calgary Municipal Land Corp. is expected to lead construction and public consultations on the design of the building.
Sammy Hudes
@sammyhudes
· 7h
Replying to @sammyhudes
6:49 …
Meghan Potkins
✔
@mpotkins
Replying to @mpotkins
And they're baaaaaack. Finally. #yyccc
Sammy Hudes
@sammyhudes
BREAKING: We have the breakdown of the deal. It’ll see the city and the Flames each pay $275 million for an arena to replace the Saddledome. #yyccc
View image on TwitterView image on Twitter
226
7:58 PM - Jul 22, 2019
Twitter Ads info and privacy
129 people are talking about this
Council members met behind closed doors for more than two hours Monday afternoon to discuss the tentative agreement between the City of Calgary, the Calgary Flames and the Calgary Stampede.
At a news conference Monday evening, Flames vice-chair Ken King called the process the “longest race ever to get to the starting line” and pointed out that a number of hurdles remain before a deal can be finalized — including council’s vote next week.
“If you look carefully at the structure of the deal, you will see significant pools of funds coming back to the city and that’s what’s different,” King said.
“We didn’t hoodwink anybody, we didn’t trick anybody. Just look down the long list of opportunities that are now to the benefit of the city.”
Under the proposed agreement, CSEC will also increase the amount it funds local amateur sports to $75 million.
King was joined at the city hall news conference by Nenshi and Stampede CEO Warren Connell. The Stampede has been involved in negotiations for the new facility since the Stampede owns the land in Victoria Park where a new arena would be built.
One key additional cost to the city will be the demolition of the Saddledome: the city will pay $12.4 million, or 90 per cent of the total cost.
The deal also includes an option that would allow CSEC to acquire valuable city lands for redevelopment, including lands at the site of the former Enoch Sales house and Victoria Park bus barns along the banks of the Elbow River. The option on Enoch Sales would expire on opening day of the arena. The option on the bus barns would expire after 10 years.
Coun. Jeff Davison, chair of the city’s event centre assessment committee, said council could spend the next week talking to Calgarians about the proposed deal before the vote on July 29.
“We don’t need a $2-million engagement plan to take feedback in,” Davison said. “Obviously, people have access to councillors’ emails and phone and social media channels. You can always submit letters through the clerk’s department, which would be accepted as part of the corporate record. So there’s many, many ways that the public can let us know how they feel about this.”
Late Monday night, Coun. Evan Woolley brought forward a motion to delay a final vote on the arena deal in order to extend the time available for public consultations.
Davison urged his council colleagues to reject the delay, suggesting it could imperil the agreement reached between the parties.
“You should know that if this passes this deal is done tonight and you will forever be known as the council that likely lost the Calgary Flames,” said Davison.
The motion failed in a 4-9 vote. Only councillors Woolley, Jeromy Farkas, Druh Farrell and Peter Demong voted in favour.
Earlier in the afternoon, when asked about the timing of the proposed arena deal arriving at the same time as city council prepares to cut $60 million from municipal budgets, Davison said council must deal with “conflicting” priorities all the time.
“We’re not oblivious. The timing is not ideal. We know there is a lot of things going on with respect to the budget,” said Davison. “But when you really look at $60 million worth of cuts, it’s really talking about two to three per cent of our operational budget. The sky is not going to fall for two to three per cent.”
This will be the third attempt at reaching a deal to replace the Saddledome in the past four years.
Talks last broke down in 2017 amid an ugly dispute between the city and the Flames over the terms of a potential deal for a new arena in Victoria Park. The city had offered to pay one-third of the cost of a new arena, approximately $185 million, but the Flames were looking for the city to pay closer to half the cost.
calgaryherald.com/news/local-news/council-could-vote-on-arena-deal-as-early-as-next-week