It's in Victoria Park, not the East Village at all.
The East Village was well on its way to being redeveloped before Nenshi was elected. If anything, it was Bronconnier's baby.
Calgary's main arena has been in roughly the same location for over a century. First, it was the Victoria Arena (which sat pretty much where the Saddledome is), then it was the Corral, then the Saddledome. To suggest that's the best place for Calgary to build an arena isn't exactly thinking outside the box.
In fact, before CSEC bought the Stamps, they were all gung-ho on that exact location. I remember going to a STH event in either 2010 or 2011 where Ken King said he had blueprints in his desk for a building "a couple blocks north of here" that he was excited to make public when the time was right.
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