Flames reach agreement in principle with Alberta, Calgary for new arena

It appears the Calgary Flames will be getting their new arena after all.

An agreement has been made in principle between the Calgary Sports and Entertainment Corporation (CSEC), the city of Calgary, the province of Alberta, and the Calgary Stampede for a new event center, Calgary mayor Jyoti Gondek announced Tuesday.

The new building will replace the 40-year-old Scotiabank Saddledome.

Gondek added that the next step is to move to a definitive agreement, at which point details on a timeline, design, and construction will be available.

The project has expanded from a single facility for the Flames to an entire entertainment district, including a community rink and transit improvements. It'll cost around $1.2 billion overall, including $800 million for the event center itself, per Postmedia's Wes Gilbertson.

The city will kick in $537.3 million, the CSEC will provide $356 million, and the province will contribute $330 million.

The project will not result in an increase in property taxes or new debt to the city.

CSEC and the city initially reached a tentative agreement in July 2019 for a new venue that would cost $550 million, split equally between the two parties. The city was also expected to handle additional funds, including 90% of the demolition costs of the Saddledome.

However, the venture's price tag increased by over $50 million in July 2021, and the situation deteriorated. The Flames opted to pull the plug in December 2021, citing unresolved issues in relation to the escalating cost of the project.

In October 2022, the Flames and city officials revived negotiations for the new arena. Alberta Premier Danielle Smith announced her support for the project, saying the Saddledome can't compete with newer venues.

CSEC president John Bean said Tuesday he heard from NHL commissioner Gary Bettman that the new arena would put Calgary in rotation to host future drafts and All-Star Games.

The Saddledome, built in 1983, has been the Flames' home for the last four decades.