Kenney Expresses Disappointment at City of Calgary Over Sand Deal Collapse – Calgary | The Canadian News

Alberta Prime Minister Jason Kenney said he is “very disappointed” that the deal to build Calgary’s new events center has officially come to an end.

Speaking in a provincial COVID-19 update on Tuesday, Kenney told reporters he was discouraged that the city of Calgary “decided to change the deal at the last minute when construction was ready to continue.”

“I understand that the group of owners indicated that they were facing quite significant construction inflation. The city’s response to that was to add even more costs and more delays, ”Kenney said. “I think it’s really unfortunate.”

Kenney’s comments refer to projected additional costs of $ 16.7 million for solar cell stuff on the building’s roof, as well as road and sidewalk issues. Both were part of a list of more than 70 conditions attached to approval of the Calgary Planning Commission development permit.

At the time, Mayor Jyoti Gondek said the city could help with $ 6.4 million, leaving $ 9.7 million for the Flames to cover.

It came after revelations that costs to build the stadium had soared to $ 634 million, which according to Calgary Sports and Entertainment Corporation (CSEC) was due to inflation and supply chain problems.

In July, the event center agreement was restructured to help cover increased costs with both parties to the agreement agreeing to contribute more money and CSEC agreed to cover any additional cost overruns.

Although CSEC declared its intention to withdraw from the agreement with the City of Calgary due to increased costs, the agreement was officially terminated on December 31, 2021.

Written notice was needed to proceed to the construction phase, which neither party gave before the December 31 deadline, resulting in the official termination of the deal.

“We have always believed that Calgary needs a new Events Center,” CSEC President John Bean said in a statement Tuesday. “However, in the current circumstances, we do not see a way forward that creates a viable partnership with the city, which is essential for a new Events Center to become a reality.”

According to Kenney, he spoke with several CEOs of “major Canadian companies” to promote investment in Alberta and highlighted “all the great new amenities” being built in Calgary as part of his presentation, including the event center, modernization of the Glenbow Museum and updates to Arts Commons.

“I think it is part of the larger package of an effort to bring back the charm of Calgary,” Kenney said. “I was encouraged that the city and the group of owners had reached an agreement, and I think it is regrettable that the city decided at the last minute to change the parameters.”

Mount Royal University political scientist Duane Bratt said the continuing “remarks” about the collapse of the deal come as no surprise to him, but many are quick to blame the Calgary mayor for the deal’s undoing.

“This is not a unilateral decision that the mayor made, and it is not a unilateral decision that she can reverse,” Bratt told Global News. “But as mayor, you are the face of the city, so she will use this for better or for worse.”

To date, $ 23 million has been spent on the event center project, including $ 11.5 million from the city of Calgary, Global News has learned.

The Canadian Taxpayers Federation said the collapse of the deal is better for city taxpayers in the long run, after a lengthy renegotiation in which the city’s stake in the project rose to $ 307.5 million.

“We don’t expect Calgary taxpayers to subsidize Walmart; we also don’t ask them to subsidize businesses like this, ”said CTF Alberta Director Kevin Lacey. “So this collapsing deal is perhaps in the long run the best scenario for taxpayers.”

The event center project was seen by many community advocates as a catalyst for rebuilding the eastern edge of downtown.

Beltline Neighborhoods Association president Peter Oliver said the collapse of the agreement presents “a great opportunity” to reinvent development in that area.

“There are a lot of things that can be built there, besides an arena, that would probably do a better job of attracting people to live downtown,” Oliver said. “There is an opportunity to put schools there, to put a new big central park there, an urban farmers market.

“This really is an opportunity for the city council to come back and make the commitment that was rushed.”

Alberta’s prime minister said he hopes the city and CSEC will reconsider and “put shovels in the ground as soon as possible.”

“The project itself will help create jobs, which are sorely needed in this city,” Kenney said.

Mayor Gondek’s office declined a request for comment from Global News on Tuesday, but has previously said it is open to further discussion to reach a solution.

–With files from Adam Toy of Global News

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