The company that owns the NHL’s Calgary Flames says an agreement with the city on the construction of a new arena to replace the aging Scotiabank Saddledome has been terminated.
Calgary Sports and Entertainment Corporation said in a news release Tuesday that the agreement was ended when neither the city nor SCEC waived “construction conditions” by Friday.
Premier Jason Kenney said during a news conference later in the day 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
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.
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.
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.
— Canadian Press
RELATED: Calgary mayor says Flames intend to pull plug on Event Centre arena project
