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I'm sure the Flames owners would like to have access to public funds, but they aren't about to sit in an old building that doesn't allow them to maximize revenue streams for another 20 years simply because Calgary isn't hosting an Olympics. Thinking that will happen (not you, but Tinordi) is ridiculous.
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The economic arguments of a huge capital investment for minimal marginal revenue and with escalating marginal costs (salaries) would dictate otherwise. There's a reason why private money isn't building stadiums, it's because it's uneconomic to do so.