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Today, I spoke with Murray Edwards, primary shareholder of Calgary Sports & Entertainment Corp (CSEC), about the future of the Event Centre project.

He informed me of the Flames intention to pull the plug on the Event Centre deal.

Why? Here’s what I know:

The deal struck in summer of 2019 envisioned a $550 m deal w/costs split equally between CSEC & the City. In addition, the City provided land, 90% demolition of the ‘Dome, excess flood/site remediation, & levies. Total City contribution: $275m + $22.4m = $297.4 plus land. I supported that deal.

In July of this year, CSEC asked to make changes to the above deal. Calgary Municipal Land Corp was removed as Development Manager, both parties added an extra $12.5m for potential cost overruns and The City added up to another $10m in event management costs.

Total value: $307.4 + land. I did not support that deal.

Since I was elected Mayor, Administration & my office have been working with CSEC to mitigate any additional costs. Two costs were identified: climate mitigation of around $4m and road/sidewalk right of way issues of $12.1m.

The City came to the table to assist with $6.4m in roadways leaving $9.7m for the Flames. Based on this gap of $9.7m, I am told CSEC is walking away from our deal.

I am disappointed. On a project worth over $650m, to have one party walk away for 1.5% of the value of the deal is staggering.

I wanted Calgarians to be the first to know. I am as disappointed as all of you that this is the way things are ending.

https://www.facebook.com/JyotiGondek