This month, the City of Calgary made public its agreements with Calgary Sports and Entertainment Corp. (CSEC) for the arena deal approved last July.

It’s no secret that the land slated for the new arena is in the floodplain, and that could end up costing the City — and taxpayers — significantly.  Unless we’re protected like we should be.  Unless the Springbank Off-Stream Reservoir (SR1) is built, that is.

The level of financial exposure this deal puts on Calgarians only further reminds us of the urgency to see SR1 completed ASAP.  It’s the only mitigation project that can truly protect an investment of this magnitude.  (Remember when the Saddledome was flooded up to row 10?)

Location and flood risk

Located just north of Stampede Park, the approximate 2.9-hectare site for the new arena is vulnerable to 1:50- to 1:100-level floods from the Elbow River.

The City and CSEC have entered into a 35-year arrangement, with an option to extend years beyond that. In a 25-year span, the proposed site has a 22-40% of flooding to the level we saw in 2013 (or a 1-5% chance each year).

Building cost and flood insurance

The total capital cost of the Event Centre is estimated at $550 million — both CSEC and the City will contribute $275 million.

CSEC will pay the full cost of insurance on the building, but only the portion it would pay if the building was not on a floodplain. The City will pay the remainder.

• Read: Section 8 of the Management and Lease Agreement

“When it comes to the flood insurance, we still don’t know what that difference in premiums is going to be, or even if the city may have to self-insure the building.” – Councillor Jeromy Farkas to CBC News

That’s real financial exposure!

We truly cannot afford any further delays on SR1.

Timing

Construction of the new arena is expected to begin in late 2021 and is expected to take approximately three years, putting completion in 2024.

The regulatory review for the SR1 project is considerably behind schedule and, with the current pace of the regulatory process (and the persistence of a small but vocal group of project opponents), it is doubtful the project will complete before the arena.

In order to have SR1 constructed in time to protect the arena during its first flood season, the pace of the regulatory process must speed up and any further delays must be avoided.

Read our latest SR1 update here. Read more about the arena and agreements on the City’s website: Event Centre in east Victoria Park.

If you have any questions or comments, reach out to us at info@crcactiongroup.com.

Regards,

Your CRCAG Board