City officials say they’ve reached a deal in principle to replace Calgary’s aging Saddledome.

“A great deal of work has taken place to bring us to this milestone day,” Calgary Mayor Jyoti Gondek said Tuesday.

The arena would be the new home of the Calgary Flames of the NHL and anchor the Rivers District, which includes East Village and Victoria Park, the city said. 

The costs, as announced Tuesday, total more than $1.2 billion.

That’s significantly higher than the previous arena estimate, which had increased to $634 million when CSEC, owner of the Flames, withdrew. That deal involved more than $300 million in public money. Talks restarted late last year.

But the funding deal announced Tuesday would also be allocated toward a new community rink, new public infrastructure and new transportation connections. The costs as announced are as follows:

• Calgary would contribute $537 million to fund development of the event centre, parking structure, an enclosed plaza and 25 per cent of the community rink. The event centre would be owned by the city.
• Calgary Sports and Entertainment Corporation (CSEC) would contribute $40 million upfront and $17 million per year, increasing one per cent each year, over 35 years. That money would go toward event centre costs, as well as parking, the enclosed plaza and 25 per cent of the community rink. It would also contribute $1.5 million per year to community sports.
• The province would contribute $300 million toward related infrastructure work — including transportation improvements, land, infrastructure and site costs. It would also contribute $30 million to fund 50 per cent of the community rink. The province would also pay for the demolition of the Saddledome.

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