CalgaryNext arena and stadium plan remains 'just an idea' in Nenshi's mind

Mayor Naheed Nenshicontinuesto question the viability of theCalgary Flames'proposalto build a new arena in the city's West Village area refusing to even refer to it as a "proposal."

"The whole point is there's no proposal. It's just an idea,"Nenshisaid in ayear-end interview with CBC News Calgary.

"There area lot of economic questions that need to be answered first."

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Thegroup that owns the Flames and the Calgary Stampeders unveiled details in the summerof its$890-million planto build amulti-use complex that would replace the Saddledomeand McMahon Stadium.

To pay for the project dubbed "CalgaryNext"the group said it would aimto borrow $250million (ideally from the city but possibly from a private lender) and repay it with a ticket tax on future events at the complex. It would alsokick in $200 million of its own.

It's asking the cityfor a $200-million direct contribution plus$240million from a community revitalizationlevy (CRL) a sort of loan that is to be paid back by anticipated growth in property-tax revenues in the area in the future, resulting from the project and relateddevelopment.

Public-use fieldhouse

For the city's direct share of the cost, the ownership group said it would build apublic-use fieldhouseas part of the stadium componentof the complex.

The city has been planning to build a new fieldhouse with an estimated price tag of roughly $200 million but has yet to identify a source of funding for the project.

But Nenshisaidmajor questions remain about whether a CRL a financing mechanism that was used to spur the East Village redevelopmentwould be financial feasible in this instance.

In addition, he said there areoutstanding questions about whetherthe site, located near the existing Greyhound bus station, could be feasiblyprepared for any type of development.

Before any construction could takeplace, the site would need to undergo major remediation of decades-old creosote contamination in the soil.

"There's a lot of questions left to be answered but the No. 1 is whether this land is good for building at all," the mayor said.

It's unclear exactly howremediation of the site would be done and who wouldpay for it;the Flames ownership group is not offering to cover any of that tab as part of its current proposal.

What's next?

Nenshi said the city will openlyweigh the pros and cons of the Flames' plan and the public will be asked for input throughout the process.

"It may well be the numbers just don't balance ... but it may be that we go a little further, and we'll do that with the public," he said.

"We have to be very, very clear that we're spending public money on public benefit," Nenshiadded.

The issue is set to formally return before council in the spring.