A tale of two cities — and their arenas
As Edmonton’s downtown arena takes shape following years of wrangling, Calgary is looking to create a new home for its own sports teams.
While the total cost of the CalgaryNext project outlined in August could be twice as much as Rogers Place, many of the arguments are the same heard in Edmonton.
Supporters say Calgary’s current facilities are outdated and can’t be properly upgraded, the development would revitalize surrounding property and using government money would boost future tax revenue while building a new field house the city needs.
Opponents call it corporate welfare, saying redevelopment in the area isn’t guaranteed and four of Canada’s NHL arenas were put up entirely with private funds.
If Edmonton’s experience holds true, this contest will likely go into overtime before the winner is declared.
CALGARY NEXT
Q What is it?
A The project unveiled in August would replace Calgary’s two main professional sports facilities, the Saddledome, built 1983, and McMahon Stadium, built 1960. It would provide a new arena/ event centre for the Flames, the Western Hockey League’s Hitmen, the Roughnecks of the National Lacrosse League and concerts.
The structure would be linked to an indoor field house enclosing a football field where the Stampeders and some amateur teams would play.
The scheme is being promoted by the Calgary Sports and Entertainment Corp., made up of the owners of the Flames, Stampeders, Hitmen and Roughnecks.
The city would own the facility and the company would operate it, covering the operating expenses and receiving all the revenues.
Q What would each section look like?
A The arena has 18,000 seats for hockey. According to the CalgaryNext website, the design will provide such amenities as suites, restaurants, large lower bowls and new technology available in other arenas.
The space could also be used for large conferences and conventions.
The indoor field house, or stadium, has a playing surface that can be converted into a regulation soccer pitch or used for court sports such as basketball and volleyball.
The facility, the first of its kind in Calgary, would also have a nine- lane, 400- metre track and a fitness room, all under a translucent roof.
It would have 30,000 seats, with space to expand to 50,000 seats for special events.
Q Where would it be?
A In the West Village lands west of downtown beside the Bow River. The area now is occupied mainly by the Greyhound bus station and car dealerships.
Much of the property is contaminated by decades of pollution from an old wood- preserving operation and must be cleaned up.
It’s near several major roads and an LRT stop, although there are concerns big events would overwhelm these transportation systems. There would be 1,500 parking spots.
Q Who pays?
A The proponents estimate the project will cost $ 890 million. They insist it will not boost property taxes.
They see themselves contributing $ 200 million and $ 250 million coming from a ticket tax.
The city would put in the land and $ 200 million for the field house, while $ 240 million would be generated by a community revitalization levy or CRL.
The province must approve the CRL, which would use property taxes from major development the company expects nearby.
This budget doesn’t include the cost of cleaning up the property, estimated at between $ 50 million and $ 300 million. The company hopes all levels of government discuss sharing that responsibility.
One city councillor puts the project’s final price at $ 1.6 billion when extra infrastructure and other expenses are thrown in.
Q When could work begin?
A The company wants to start construction in 2017 and thinks it will take three years to complete, although it admits the time needed for remediation could throw off this timetable.
As well, the issue hasn’t started to wind its way through city hall. Some councillors have supported the proposal, while others, including Mayor Naheed Nenshi, have said they don’t want tax dollars to go toward private profit.
ROGERS PLACE
Q What is it?
A An arena to replace Rexall Place, opened in 1974. Construction started in March 2014.
The four- hectare site will provide a new home for the Oilers, the Western Hockey League’s Oil Kings, concerts and other events.
The structure is linked to a 1,000- seat community rink for use by the public, Oilers and Oil Kings practices, and the MacEwan University women’s and men’s hockey teams.
The scheme was promoted by Oilers owner Daryl Katz. The Oilers Entertainment Group will operate and receive all the revenue from the facility, which is owned by the city.
Q What will it look like?
A The arena has 18,647 seats. There are more than 9,000 seats in the lower bowl, 4,100 club seats, 56 suites, 24 mini- suites and 1,116 loge seats clustered around tables.
There’s also a restaurant, shops, multiple food and drink outlets, and the largest high- definition arena scoreboard in the world.
The Winter Garden pedestrian walkway, which can hold several thousand people for pre- game events or concerts, provides a walking route over 104th Avenue to a plaza and retail on the south side of the road.
There are 350 parking spots below the arena, 2,200 underground stalls on the south side of the road, and a total of 12,000 within a 10- minute walk, according to the city.
Q Who pays?
A The total cost is $ 606 million when land, the Winter Garden, the community rink, a pedestrian corridor and an LRT connection are included.
The city is providing $ 279 million from a CRL on surrounding development, extra parking income, redirecting the current Rexall Place subsidy and other sources.
Katz is paying $ 161 million in cash and a long- term lease, $ 125 million comes from a ticket tax, $ 7 million is coming from the federal government and $ 2 million from MacEwan.
The remaining $ 32 million was anticipated from the province, but that money still hasn’t arrived. It will be added to the CRL if it isn’t approved.
The city says the project will not increase property taxes.
Q Is that everything being built?
A Not at all. The arena is the centrepiece of the surrounding arena district being erected by Katz and the WAM Development Group, estimated to be worth $ 2.5 billion.
It features a City of Edmonton office tower, headquarters for Stantec in what will be Canada’s tallest building outside Toronto, an upscale hotel, a new casino, condominiums, Cineplex theatres, rental apartments, shops, restaurants and entertainment.
Q How long did it take Katz and city council to reach an arena agreement?
A A committee first called for the replacement of Rexall Place in 2008. The final deal with a guaranteed maximum $ 480- million price was reached in 2014.
Q When will it all be ready?
A Rogers Place is scheduled to open in fall 2016 for the start of the next NHL season.
The city’s tower will be ready around the same time, while the Stantec Tower and the hotel are expected to be finished in 2018.
A future second phase of development is slated for two hectares of land north of the arena.