I did a mock-up of what it could look like to have two shared arenas together.
I used the Prudential Center because it's the perfect size for the spot in question. For the smaller arena, I used the Thunderbird Arena at UBC, which was the small hockey venue in 2010. It holds about 7,500 people for hockey games.
To make this specific design work, 14th Ave would need to be shifted south by about 30 metres. The only existing structure that would be affected is the Stampede HQ building, but I don't think it will survive the redevelopment plan anyway.
My big concern with linking arena funding to Olympic funding is that it has the potential to completely stop the discussions between the city and CSEC until the IOC makes a decision next year.