Like has been said. There was a zero chance of an arena being part of this proposal - AT THIS POINT. That does not mean that a new arena wouldn’t become part of the overall package in the end.
Like others have said, after winning a bid, you combine the funds for a smaller rink, with the Saddledome reno/upgrade funds - and use that as a basis to get an arena deal done.
If the stadium renovations use the above sketches as a guideline, that is fully acceptable as well.
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