Flames say they were prepared to contribute $275M for new arena

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The arena situation in Calgary took another twist Thursday, with the Flames revealing that they had been prepared to contribute $275 million to a new arena.

The Flames released a nine-page report, which included the financial details of their proposed contributions. The organization said funding would also include $225 million from a Community Revitalization Levy, which would be generated from other developments in the immediate area around the arena.

Last week, it was reported that the Flames were no longer pursuing a new arena in Calgary. The club reiterated as much in their report Thursday.

“In a “small market” city, even one with an NHL team, a privately funded arena is not economically viable. The City’s proposal is just not workable (or even for that matter, “fair”, based on other arena deals in comparable cities),” the organization stated in the report.

“As a result, after over two years of discussions, we see absolutely no basis upon which a new arena agreement can be achieved with the City, and we have concluded that there is no point to continue the pursuit of a new arena in Calgary. Many, including us, believe Calgary is a terrific place for NHL hockey and we certainly have great fans. As such, we will strive to operate, as we have for the past 34 years, in the Saddledome for as long as we believe it is feasible.”

More from The Canadian Press:

The city proposed a three-way split on the cost of a $555-million arena, with the city and the Flames each paying $185 million and the remaining third raised from a surcharge on tickets sold to events in the new building.

Flames president Ken King contended the city’s plan amounted to the team paying the entire cost, or more, because the team considers a ticket surcharge paid by users revenue that belongs to the Flames and because they’d pay property tax back to the city.

The Flames current arena, the Saddledome, is now 34 years old and has drawn criticism in the past from NHL commissioner Gary Bettman. In 2015, the Flames unveiled their plans for a new arena — the CalgaryNEXT project — with an original cost of $890 million.

The city said at the time that the original proposed plan was not feasible. This issue has since continued for over two years now. In June, Brian Burke said the Flames could leave Calgary without a new arena. King, himself, has said the current arena situation in Calgary is not “viable in the near or long-term.”

“That’s why we’re having this discussion is about a new facility,” King told the Calgary Herald. “So, if we’re successful in that initiative, our near and long-term future is here (in Calgary). If not, we have to decide what the alternatives are … Anyone can connect the dots to how many choices we have left.

“If we don’t get a deal, what are our choices?”

There was also this from the commissioner.