Critics and supporters have divergent views on the recently announced arena deal in Calgary, Alberta, that involves using public funds to build an NHL arena. The city will contribute $537 million towards building a new event center that will replace the aging Saddledome and anchor the Rivers District. Meanwhile, the Alberta government will contribute $300 million towards surrounding infrastructure such as roads, utilities, and parking. The Calgary Flames ownership group will provide $40 million upfront and an additional $17 million per year for 35 years. Critics, such as the Canadian Taxpayers Federation, argue that the funds could be put to better use addressing more critical issues, such as rising inflation and record-high dependence on food banks. Others, such as David Lo, executive director of the Victoria Park Business Improvement Area, support the deal, arguing that the culture and entertainment district offers significant gains, with the community benefiting from revitalization.
The cost of the project is estimated at $1.2 billion, and many details, including who will cover cost overruns, remain unresolved. The Flames’ website states that both CSEC and the city will share the cost overruns, but it is unclear what the split will be. Despite concerns from former city councillor Jeromy Farkas and the Canadian Taxpayers Federation, Calgary Mayor Jyoti Gondek has defended the deal, citing the much-needed improvements to the area, such as the construction of an underpass at 6th Street to enhance connectivity.
Premier Danielle Smith has reiterated that the money will be spent on infrastructure, not the construction of the arena, and hopes the deal won’t become an election issue. Opposition NDP Leader Rachel Notley has called on Smith to make any secret financial details surrounding the project public, while Calgary Chamber of Commerce CEO Deborah Yedlin has called it a great investment by both levels of government, arguing that it will result in spin-off private investments and create jobs in the community.