Look what happens when adults get involved. The new Calgary arena deal, while short on details, shows highly motivated people can still come together and make things happen..The non-negotiable lists of each of the parties were probably pretty short, but could be readily agreed to by the others..For the City of Calgary, the arena had to be built in the East Village as part of their grand redevelopment plan for Victoria Park. So we now have a new “Culture, Arts and Entertainment District” anchored by the arena. It seems to be a side detail that this is also where most of Calgary’s professional sports will take place. What we can’t have at this location is a field house and a new football stadium. These will have to wait for the redevelopment of Foothills Athletic Park..Danielle Smith was happy to supply some money for “infrastructure” so long as an announcement could be made prior to the formal writ drop for the election. To delay the announcement any further would be seen to be even more crass electioneering than the current announcement..For the Flames, they just wanted no part of Mayor Gondek and they didn’t want to pay much more than they had committed for the previous project..Almost everybody came out ahead..For Smith this was huge. She is now seen as someone who can get things done. All of the naysayers who are complaining about subsidizing “billionaires and their millionaire employees” just don’t understand the arena economics in small markets. Calgary deserves a world class facility and Smith delivered one. This should earn her some benefits at the ballot box..Also the Flames have to be happy. This deal ensures a home for a long time and puts Calgary on the map for some of the NHL’s most prestigious evens like the All Star Week and the NHL Draft. Their total financial commitment was just a bit more than the previous deal, but costs have nearly doubled. They are big winners..Sonya Sharp also emerged as a calm, competent official and negotiator. This will no doubt be a feather in her cap as she ponders challenging Gondek in a run for the mayor’s chair in a few years..For the city, their revitalization of Victoria Park can now proceed. Only time will tell if this strategy will generate all the economic activity to justify the huge investment. In the post-COVID world there is limited demand for pubic cultural and entertainment activities. Plus there are many more local areas in Calgary that already meet that demand. Victoria Park may just cannibalize those alternative venues. And it is also not clear how this helps fill the vacant office space in the downtown, most of which is on the west side..Mayor Gondek has to be happy she was even invited to the announcement..The Calgary taxpayers should be holding on to their wallets. The claim taxes won’t increase because of this project stretch credibility a bit far. Where is the extra money going to come from? Of course the blame for this rests squarely on the shoulders of Gondek and her refusal to reopen negotiations when Murray Edwards came calling..The addition of a smaller venue with a “community” hockey rink would bring us full circle to 1988 with the Saddledome and the Corral..But at least Calgary and Alberta will now be seen as capable of playing on the world class stage..Well done, all..William D. Marriott is a retired economist who specialized in policy analysis of the oil and gas industry.
Look what happens when adults get involved. The new Calgary arena deal, while short on details, shows highly motivated people can still come together and make things happen..The non-negotiable lists of each of the parties were probably pretty short, but could be readily agreed to by the others..For the City of Calgary, the arena had to be built in the East Village as part of their grand redevelopment plan for Victoria Park. So we now have a new “Culture, Arts and Entertainment District” anchored by the arena. It seems to be a side detail that this is also where most of Calgary’s professional sports will take place. What we can’t have at this location is a field house and a new football stadium. These will have to wait for the redevelopment of Foothills Athletic Park..Danielle Smith was happy to supply some money for “infrastructure” so long as an announcement could be made prior to the formal writ drop for the election. To delay the announcement any further would be seen to be even more crass electioneering than the current announcement..For the Flames, they just wanted no part of Mayor Gondek and they didn’t want to pay much more than they had committed for the previous project..Almost everybody came out ahead..For Smith this was huge. She is now seen as someone who can get things done. All of the naysayers who are complaining about subsidizing “billionaires and their millionaire employees” just don’t understand the arena economics in small markets. Calgary deserves a world class facility and Smith delivered one. This should earn her some benefits at the ballot box..Also the Flames have to be happy. This deal ensures a home for a long time and puts Calgary on the map for some of the NHL’s most prestigious evens like the All Star Week and the NHL Draft. Their total financial commitment was just a bit more than the previous deal, but costs have nearly doubled. They are big winners..Sonya Sharp also emerged as a calm, competent official and negotiator. This will no doubt be a feather in her cap as she ponders challenging Gondek in a run for the mayor’s chair in a few years..For the city, their revitalization of Victoria Park can now proceed. Only time will tell if this strategy will generate all the economic activity to justify the huge investment. In the post-COVID world there is limited demand for pubic cultural and entertainment activities. Plus there are many more local areas in Calgary that already meet that demand. Victoria Park may just cannibalize those alternative venues. And it is also not clear how this helps fill the vacant office space in the downtown, most of which is on the west side..Mayor Gondek has to be happy she was even invited to the announcement..The Calgary taxpayers should be holding on to their wallets. The claim taxes won’t increase because of this project stretch credibility a bit far. Where is the extra money going to come from? Of course the blame for this rests squarely on the shoulders of Gondek and her refusal to reopen negotiations when Murray Edwards came calling..The addition of a smaller venue with a “community” hockey rink would bring us full circle to 1988 with the Saddledome and the Corral..But at least Calgary and Alberta will now be seen as capable of playing on the world class stage..Well done, all..William D. Marriott is a retired economist who specialized in policy analysis of the oil and gas industry.