Calgary arena deal dead? Mayor says Flames intend to walk away

CALGARY –

Mayor Jyoti Gondek said in Facebook and Twitter posts early Tuesday evening that Calgary Flames owner Murray Edwards told her the team intends to pull the plug on the Event Centre Deal.

Gondek said that since she was elected mayor, city administration and her office have been working to mitigate any extra costs on top of the already agreed to $650 million project, identifying climate mitigation of around $4 million and right of way issues of $12 million.

The city agreed to cover 40 per cent of that, but apparently it wasn’t enough for the Flames.

“The City came to the table to assist with $6.4m in roadways leaving $9.7m for the Flames,” Gondek wrote. “Based on this gap of $9.7m, I am told CSEC is walking away from our deal.”

The city released a document showing a breakdown of the Event Centre deal

“I am disappointed,” Gondek said, continuing. “On a project worth over $650m, to have one party walk away for 1.5 per cent of the value of the deal is staggering.

“I wanted Calgarians to be the first to know. I am as disappointed as all of you that this is the way things are ending.”

Gondek is scheduled to make a press announcement at 6:30 p.m.

CTV News reached out to the Flames for comment, but haven’t heard back yet.

This is a developing story…