In the modern version of Nero watching Rome burn, the City of Calgary’s Event Centre committee filed a financial report as the Saddledome’s roof crumbles..The report says the city’s bill for the previous Event Centre process sits at $16.8 million. The final closing costs for the previous Event Centre agreement were put into a mid-year-capital and operating revision report coming to an Executive Committee meeting on Thursday..The city reached an agreement with the Calgary Sports and Entertainment Corporation (CSEC), which owns the Calgary Flames, Stampeders, Hitman and the newly-moved-to Calgary, Stockton Heat to partner in the construction of a new event centre, which would become home to the Flames and Hitmen..The deal fell apart when Calgary’s newly elected Mayor Jyoti Gondek added the costs of road work, public realm improvements and the requirement by the city for solar panels. The additional infrastructure demanded by Gondek took the initial cost from an agreed upon $550 million, to be shared between CSEC and the city, to $634 million when the deal expired at the end of December.. Jyoti GondekWriter Michael Wagner floats the possibility that Calgary mayor Jyoti Gondek represents a changing worldview in Calgary's largest cities that will represent an challenge for Alberta conservatives. .In January, council directed administration to look for new options for the project, including having a third party look for potential partners other than the Flames’ ownership.The Event Centre Committee’s report says the city has completed its due diligence review of the previous agreement closeout, terming the $16.8 million price tag a “near-final” assessment, with the city’s representative on the committee, its chair and city councillor Sonya Sharp, saying CSEC and the city shared the closing costs equally, spending $14.2 million each. .Additional costs incurred for transactions and consultants, totalling $2.6 million, were covered by the city..Sharp says the costs are typical for a project of this scope..“This is actually normal practice. It’s just that this is more of a high-profile project,” she says, adding it’s too soon to know if it will be possible to recover some of the costs by not re-doing work if the city and CSEC succeed in inking a new deal. .“I would say we’re still very premature to make that call or to give that information,” she said. “We’re still very much in the conversation piece and deciding on a path forward.”.The original budget of $312.9 million now sits at $296 million..Where the remaining funds will be spent is not clear, although it could go to any future event centre agreement. .Calgary taxpayers could be liable for costs if a new agreement is reached, but that's uncertain that this time..Once again, Sharp says it’s too soon to know..“To say this would be something we would be on the hook for next time, I think that’s super premature,” she says. “We still need some conversations with CSEC and the city to understand where we’re going to go,” she said, adding no formal negotiations with the CSEC are currently taking place..Since directing administration to find new partners, the city brought in a third-party mediator hoping to restart talks with CSEC..The city and CSEC are negotiating through the Event Centre Visioning Group, consisting of three Calgary businessmen: John Fisher, CBRE executive vice-president; Guy Huntingford, NAIOP Calgary strategic director; and Phil Swift, Ayrshire Group executive chair. .“I would say I’m very optimistic of where we’re at and where we’re going,” said Sharp, following a committee meeting on Sept. 14..“It is really important that we do this right. We don’t want to see this fail.”
In the modern version of Nero watching Rome burn, the City of Calgary’s Event Centre committee filed a financial report as the Saddledome’s roof crumbles..The report says the city’s bill for the previous Event Centre process sits at $16.8 million. The final closing costs for the previous Event Centre agreement were put into a mid-year-capital and operating revision report coming to an Executive Committee meeting on Thursday..The city reached an agreement with the Calgary Sports and Entertainment Corporation (CSEC), which owns the Calgary Flames, Stampeders, Hitman and the newly-moved-to Calgary, Stockton Heat to partner in the construction of a new event centre, which would become home to the Flames and Hitmen..The deal fell apart when Calgary’s newly elected Mayor Jyoti Gondek added the costs of road work, public realm improvements and the requirement by the city for solar panels. The additional infrastructure demanded by Gondek took the initial cost from an agreed upon $550 million, to be shared between CSEC and the city, to $634 million when the deal expired at the end of December.. Jyoti GondekWriter Michael Wagner floats the possibility that Calgary mayor Jyoti Gondek represents a changing worldview in Calgary's largest cities that will represent an challenge for Alberta conservatives. .In January, council directed administration to look for new options for the project, including having a third party look for potential partners other than the Flames’ ownership.The Event Centre Committee’s report says the city has completed its due diligence review of the previous agreement closeout, terming the $16.8 million price tag a “near-final” assessment, with the city’s representative on the committee, its chair and city councillor Sonya Sharp, saying CSEC and the city shared the closing costs equally, spending $14.2 million each. .Additional costs incurred for transactions and consultants, totalling $2.6 million, were covered by the city..Sharp says the costs are typical for a project of this scope..“This is actually normal practice. It’s just that this is more of a high-profile project,” she says, adding it’s too soon to know if it will be possible to recover some of the costs by not re-doing work if the city and CSEC succeed in inking a new deal. .“I would say we’re still very premature to make that call or to give that information,” she said. “We’re still very much in the conversation piece and deciding on a path forward.”.The original budget of $312.9 million now sits at $296 million..Where the remaining funds will be spent is not clear, although it could go to any future event centre agreement. .Calgary taxpayers could be liable for costs if a new agreement is reached, but that's uncertain that this time..Once again, Sharp says it’s too soon to know..“To say this would be something we would be on the hook for next time, I think that’s super premature,” she says. “We still need some conversations with CSEC and the city to understand where we’re going to go,” she said, adding no formal negotiations with the CSEC are currently taking place..Since directing administration to find new partners, the city brought in a third-party mediator hoping to restart talks with CSEC..The city and CSEC are negotiating through the Event Centre Visioning Group, consisting of three Calgary businessmen: John Fisher, CBRE executive vice-president; Guy Huntingford, NAIOP Calgary strategic director; and Phil Swift, Ayrshire Group executive chair. .“I would say I’m very optimistic of where we’re at and where we’re going,” said Sharp, following a committee meeting on Sept. 14..“It is really important that we do this right. We don’t want to see this fail.”
