Financial Contribution
Agreements
Scotia Place plays a key role in the Culture + Entertainment District in east Victoria Park that draws on the spirit of entertainment and gathering. The City of Calgary (The City), Calgary Sport & Entertainment Corporation (CSEC), The Province of Alberta (The Province) and the Calgary Stampede all played significant roles in preparing and finalizing the agreements that led to the 10-acre site where Scotia Place will be located.
On October 5, 2024, the parties listed above signed agreements that would allow for a 40% larger Scotia Place in the C+E District than previously planned. With the additional space, Scotia Place will now reside on a 10-acre site and will have the following amenities:
- Scotia Place
- Indoor community plazas
- Outdoor community event plazas and gathering areas
- Attached parkade
- Community hockey rink
- Dining opportunities
The agreements for Scotia Place are listed below. Redactions in the released agreements are in place to protect sensitive and proprietary information about project partners.
More information about the agreements can be found on the FAQ page.
Agreements signed October 5, 2023
| Agreement | Action |
|---|---|
| Calgary Community Rink Grant Agreement | |
| Community Grant Agreement | |
| Covenant to Pay Agreement | |
| CSEC Guarantee | |
| Development Management Agreement | |
| Event Management & Road Usage Agreement | |
| Facility Fee Agreement | |
| Facility Fee - Imposition & Setting of Amount Agreement | |
| Grant Agreement | |
| Land Exchange Agreement | |
| Management Lease Agreement | |
| Master Agreement re Options to Purchase | |
| Non-Relocation Agreement | |
| Project Framework Agreement | |
| Right of First Offer to Purchase Agreement | |
| Tax Agreement |
Each Party Plays a Role
To acquire the space needed for Scotia Place, The City of Calgary and its partners entered different agreements that provided The City with the 10-acre lot needed for the event centre.
With Scotia Place being a significant part of the vibrant Culture + Entertainment District, agreements included multiple partners, each who play key role and support the vision and common goal of the C+E District. Each party played an essential role in the agreements that facilitated the space for the event centre.
The City of Calgary
The City will own Scotia Place Community and surrounding facilities. This development supports the overall vision to complete Calgary’s Culture + Entertainment District, which includes a modern entertainment facility. It complements the long standing agricultural, convention and sports venues; while supporting the emerging cultural, arts and education facilities, and future residential, hotel, entertainment, and retail redevelopments. It will be designed as a gathering place for all Calgarians and visitors.
The City has been significantly investing in Calgary’s downtown for the past 10 years, which has intensified since the Downtown Strategy was approved in 2019. The recent focus has been implementing the Greater Downtown Plan through the Downtown Strategy, which includes incentive programs to begin reversing the high office vacancies and activating public spaces to encourage more people to visit and enjoy our downtown and its businesses.
The City’s support has also included new infrastructure and amenities in the Rivers District and Culture + Entertainment District, which includes BMO expansion, Green Line route and station, upgrades to Stampede station, Stampede Trail, and nearby improvements to 17 Avenue S. and 9 Avenue S.E. bridge.
Calgary Sports and Entertainment
CSEC will operate and maintain Scotia Place over a 35-year term, which includes an annual lease payment made to The City to use the facilities.
As part of the agreement, the Calgary Flames NHL franchise remains in Calgary for at least 35 more years and will provide additional annual funding to community sports, during that time.
The Province of Alberta
The Province is providing funding for infrastructure improvements in the Culture + Entertainment District, as well as half of the community rink. These improvements include the 6 Street S.E. underpass, public gathering spaces, and upgrades to streets, sidewalks, and accesses to the area.
This Provincial support is consistent with other significant investments that they’ve made in the Culture + Entertainment District, since 2007; specifically, through the formation of the Rivers District Community Revitalization Levy (CRL), which is an innovative funding source for new infrastructure and amenities throughout the area.
Most recently, the Province contributed funding through the CRL for the BMO Centre expansion, which will become the largest convention centre in western Canada. They are also funding 1/3 of the Green Line LRT program, which includes a station within the Culture + Entertainment District. The Province continues to support the Calgary Stampede – a long-standing Calgary institution and international attraction.
The Calgary Stampede
Calgary Stampede enabled land transactions that increased the size of Scotia Place by almost 40%. They also made land available for future redevelopment opportunities, in exchange for land that they would require for their annual exhibition. As part of the agreement, The City will now own and control the roadways to better coordinate traffic and move people during events.
Calgary Municipal Land Corporation
Calgary Municipal Land Corporation (CMLC) developed the vision for the Rivers District and Culture + Entertainment District. They have led and continue to oversee the development of the Culture + Entertainment District. CMLC and The City will collaborate on the Culture + Entertainment District improvements to make sure the whole area has the required infrastructure to support Scotia Place and the future development.
Financial contributions and The City’s return
The agreements outline three streams of funding that The City will receive from CSEC over the 35 year term:
-
$748.3 million (a present value of $356 million)
• $40 million upfront
• $17 million annual lease payment, escalating 1% per year
-
Future land sales
• Four properties identified for redevelopment
• Future sale of Victoria Park Bus Maintenance Facility
-
$52.5 millions
• $1.5 million annual payment to community sport funding
The City benefits from event revenues
All revenues streams, which include ticket surcharge and naming rights, within Scotia Place, are consolidated into one committed and predictable lease payment to The City - $17 million per year for 35 years. The lease payment escalates by 1% per year over 35 years.
Once the 35-year term is completed, CSEC will have contributed $748.3 million.
This approach means CSEC assumes the operations and revenue risk, in exchange for any potential upside returns. It minimizes risk to The City that’s associated with being exposed to multiple variable and unpredictable revenue streams over a longer 35-year term.
Previous
The previous agreements, which concluded Dec. 31, 2021, was funding one project: an event centre building. When the previous agreements were in place, it estimated the building to be $608.5 million. CSEC also kept the revenues in the previous agreements, except for a minor naming rights allocation.
The current agreement, in principle, includes a complete package of projects that support the development of the whole Culture + Entertainment District. Where the previous agreements only included a building, one smaller outdoor community plaza and minor road work; the current agreement expands the scope through a city-building lens that includes more community and people-centred amenities, and redevelopment opportunities.
When the doors open, people will have new and improved accesses to the area, access to downtown’s only community rink, better spaces to gather and experience, and a modern event centre that will be Calgary’s and the region’s premier sports, arts and entertainment venue.
This agreement, in principle, gives Calgary, the downtown and the Culture + Entertainment District a broader scope for a much bigger return economically and socially, than the previous agreements.
| Comparison to July 2021 | July 2021 | 2023 Agreement | Difference |
|---|---|---|---|
| Event Centre | $608.5 | $800 | $191.5 |
| Indoor Community Plaza | $0.0 | $9.5 | $9.5 |
| Parkade | $0.0 | $35.4 | $35.4 |
| Community Rink | $0.0 | $52.8 | $52.8 |
| Outdoor Community Plaza | $0.0 | $28.7 | $28.7 |
| Total | $608.5 million | $926.4 million | $317.9 million |
| Comparison to July 2021 | July 2021 | 2023 Agreement | Difference |
|---|---|---|---|
| Transportation connections and improvements | $0.0 | $147.1 | $147.1 |
| Remediation, public spaces and demolition | $0.0 | $57.8 | $57.8 |
| Land purchase | $0.0 | $33.5 | $33.5 |
| Other | $0.0 | $58.5 | $58.5 |
| Total | $0.0 | $296.9 million | $296.9 million |
Edmonton Rogers Place
The City is using a similar funding approach to the one used in Edmonton, where the City of Edmonton paid for Rogers Place and the OEG Inc. are required to make annual payments (rent and ticket surcharge) to offset the City of Edmonton investment. The OEG Inc.'s upfront investment ($27 million) was 4.4% of the total cost of Rogers Place ($637 million).
OEG Inc. receives the revenues from Rogers Place and are responsible for operating and maintenance expenses. Similarly, CSEC will retain revenues from Scotia Place and be responsible for operating and maintenance expenses.
CSEC kept the revenues in the previous agreements, except for a minor naming rights allocation. Most NHL teams (and other major league teams) are responsible for the operating and maintenance expenses, as well as retain the revenues from the venues in which they play.
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