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Calgary City Council hears posthumous story about trading dead event center-Calgary

A comprehensive post-mortem analysis by the Calgary City Council on what led to the termination of the Calgary Event Center contract revealed few details that were not yet in the public domain on Wednesday afternoon.

At a council meeting, Stuart Dalglish, General Manager of the City’s Planning Department, shared a summary timeline of what happened to the end of the transaction on December 31, 2021.

The timeline shows that the pre-construction stage gate (when both sides had to agree on each other to proceed) was eight times behind due to factors such as pandemics and rising costs. I did.

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The Calgary Arena contract will officially end after the December 31st deadline.

In January 2021, the cost exceeded the initial estimate. The original contract between CSEC and the city of Calgary was signed in July 2019, and both sides agreed to cover half the price of the $ 550 million event center at the time. The city was trying to provide land and retain ownership of the building.

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The city also agreed to pay $ 22.4 million for the demolition of the saddle dome and the land reclamation work.

Dalgliesh said the initial costing was based on five other equivalent areas.


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Calgary Flames organization withdrew from new arena contract with city due to rising costs


The Calgary Flames organization withdrew from a new arena contract with the city due to rising costs – December 22, 2021

The July 2021 meeting between the city and the ownership of Flames increased the budget to $ 608.5 million. The city’s cost burden amounted to $ 287.5 million. Calgary Municipal Land Corporation has been replaced by Calgary Sports and Entertainment (CSEC) as Development Manager. The financial safety requirement has been removed, with facility charges for non-sports events up to 9.5%.

And the stage gate to start construction was extended until December 31, 2021.

At the same time, the development permission process was at its pace.

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The pre-application process required three reports: climate risk assessment, renewable energy and low carbon feasibility studies, and waste reduction projects. The first two of these reports were submitted in October 2021.

“Development authorities worked with applicants to incorporate climate resilience factors from October to early November. Prior to the recommendations of the development authorities’ report, two climate resilience factors were considered by the applicant. It was and was accepted, “said Dalgliesh.

On November 18, 2021, the Calgary Planning Commission, a development authority independent of the city council, recommended improvements to roof sidewalks and climate mitigation as part of the list of 70 conditions attached to the development permit. The conditions for developers to meet are regularly attached to development permits.

These conditions raised the bill to $ 634 million.

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Cost Range: Flame, City Explains Causes of Calgary Arena Trading Collapse

“Once the construction plan was completed, the final cost and budget were still about six months away,” Dalgliesh said Wednesday.

The CSEC was dissatisfied with the rising costs in discussions with the city after a meeting of the Planning Committee on November 18, 2021.

Dalgliesh said the city promised to return to the Flames-owned group with a solution to the increased costs.

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Of the $ 12.1 million toll costs, the city has offered to cover $ 6.4 million for road reconstruction.


Click to play video:'Calgary Event Center: City and CSEC each cover $ 12.5 million cost overrun, CMLC out'



Calgary Event Center: City and CSEC each cover $ 12.5 million in cost overrun, CMLC


Calgary Event Center: City and CSEC each cover $ 12.5 million in cost overrun, CMLC July 26, 2021

At a cost of $ 3.9 million in climate resilience items, including solar panels and operating costs to eliminate event centers by 2035, the city has offered to help the CSEC find subsidies. rice field.

Dalgliesh stated that these offers were made in writing to the Flames-owned group on 20 December 2021.

The Calgarian first learned that the CSEC withdrew from the event center contract on December 21, 2021, after a phone call between Gondec and Murray Edwards, the majority shareholder of Frames.

read more:

Calgary Flames withdraws from new arena deals with cities due to rising costs

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Mr Gondec said it was a “very professional and candid” conversation at the time, after Edwards said her CSEC couldn’t make a financial commitment after the building’s development permit was approved.

The event center transaction was closed because both the city and Flames owners did not agree to proceed to construction through the next stage gate by December 31, 2021.

So far, about $ 23 to $ 24 million has been spent driving the event center to the brink of construction, according to Dalglish. Under their agreement, the CSEC and the city will split these costs from the remaining winddown costs.


Click to play video:'Owners are struggling with additional requirements for climate mitigation at the new event center: President of Calgary Flames'



Owners are struggling with additional requirements for climate mitigation at the new event center: President of Calgary Flames


Owners are struggling with additional requirements for climate mitigation at the new Event Center: President of Calgary Flames – December 22, 2021

On Wednesday, councilors asked about the climate mitigation factors of the event center and were said to have been informed by the council’s 2018 decision on climate resilience and mitigation policy.

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However, the councilor heard that the goal of Net Zero in 2035 is the goal.

“The target date for 2035 was non-binding, but was chosen because it is an ambitious goal that is consistent with the obligations of climate science that require rapid decarbonization,” said the city’s planning department. Debra Hamilton said. “To reach the 2050 goal (of the city’s net zero), we need some buildings to reach this goal well before 2050.”

These 2018 policies aimed for LEED Silver certification at the Event Center.

“We have agreed to target LEED Silver as a project,” said Dalgliesh. “I think we were able to achieve LEED Silver without the addition of climate-resilient parts.”

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Arena contract collapse raises concerns about future plans for Victoria Park in Calgary

Mosherander, a professor of economics at the University of Concordia, said the outlook for the new professional hockey arena and event center still depends on Calgary, especially after the CSEC cannot move forward.

“There’s always some controversy between the city and the sports team itself, and it’s a fairly common play,” Lander told Global News. “Maybe this is a bit more to say:” We’re moving away from the deal “after it’s been signed and done.”

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“But the fact that there is this kind of violent negotiation is not entirely surprising.”

Lander said the National Hockey League does not allow franchises to relocate and “walk around wherever they like.”

“Twenty-four (NHL) owners need to put off the idea of ​​moving to Quebec City or Houston,” said Professor Concordia. “And they’re probably trying to withdraw (about) $ 1 billion from them. This is a way to withdraw $ 1 billion from owned groups in Las Vegas and Seattle to get them moving.”


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Flame, City says reports of the cause of the cost of the Calgary Arena transaction collapse


Flame, City says reports of the cause of the cost of the Calgary Arena transaction collapse – December 22, 2021

Lander said it leaves one option. It is to return to the negotiating table.

“What has to happen at this point is that both sides have to realize that there is only one negotiating partner here and find a way to do this job,” Lander said.

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“And at some point, when the tension subsides, the new mayor can sit down and say:” Well, how do you achieve this? “


Click to play video:'Check in to Mayor of Calgary Jotigondek'



Check-in to Mayor of Calgary Jotigondek


Check-in to Mayor of Calgary Jotigondek

© 2022 Global News, a division of Corus Entertainment Inc.



Calgary City Council hears posthumous story about trading dead event center-Calgary

Source link Calgary City Council hears posthumous story about trading dead event center-Calgary

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