The Flames wanted a lot more than just an arena
By Ryan Pike
6 years agoIn the latest development in a story that just won’t stop developing, the Globe and Mail’s Carrie Tait and Al Maki released deals they’ve obtained of the first offer from the Calgary Flames to the City of Calgary regarding the potential future home of the hockey club.
Originally proposed to the City back in February, the Flames’ offer reflects a vision that features a whole lot more than just an arena for the Flames.
According to the Globe’s report, the Flames would have participated financially – presumably with their proposed $275 million contribution – to the construction of a new arena and an adjacent practice arena. In addition, the Flames would be provided the following by the City:
- The construction of a public plaza for festivals and events adjacent to the arena
- The option to buy and develop land adjacent to the arena
- Approval over the Victoria Park redevelopment plan
- Part of the revenue from the Cowboys Casino (which currently goes to the Stampede)
- All of the parking revenues from arena events (which, aside from Flames-owned lots, currently goes to the Stampede)
- The flood insurance, paid for by the City
- The provincial property taxes, covered by the City
- Free transit service for anybody with a ticket to an event at the arena
And remember, the City’s $225 million contribution to the construction of the arena would be, in the Flames proposal, covered by a Community Revitalization Levy (despite that not being what they’re for). In other words, in the Flames’ first offer was that the City would use property taxes to pay for the arena (via the CRL), not charge the arena municipal property taxes (or rent), cover their provincial property taxes, cover transit service for a large number of events a year, cover flood insurance, and give the Flames a large amount of revenue from the non-profit Stampede’s coffers. Oh, and give them significant say over the development in the surrounding area. That’s a lot for the City to give to a commercial enterprise.
The Globe summarized the first offer in one paragraph:
If Calgary acquiesced to the terms, for example, it would give some of Canada’s wealthiest men business opportunities in part thanks to financial support from taxpayers. Further, some of the sticking points would affect the Calgary Stampede’s balance sheet. The Stampede, which hosts the city’s famous 10-day festival and other events, is a not-for-profit organization and parking and gambling revenue are important to its operation.
A lot of other NHL arenas were built under similar deals – Tait and Maki name-drop Edmonton, Tampa Bay and Detroit, among others – but given the current economic climate and the lack of enthusiasm of the current City Council to providing the Flames with that level of public support for the arena, it’s not a big surprise that council didn’t jump at this offer.
As we wrote last month: this is about a lot more than “just” an arena, and the Flames’ appetites to direct the development of an arena district didn’t disappear when CalgaryNEXT was abandoned.
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