CalgaryNEXT Response To DCM Report

Calgary Sports and
Entertainment Corporation
Response to Deputy City

Managers Report to Council
Dated April 25, 2016
West Village CalgaryNEXT
Phase One Analysis
Submitted June 27, 2016
Background
Common Ground
CalgaryNEXT Guiding Principles
Public Benefit For All Calgarians
Financial Model
Location
13
Fieldhouse
14
McMahon Stadium
16
Transportation / Parking Access / Egress
18
Remediation
22
Alignment With The Citys Six Guiding

Principles For the West Village
24
Plan B Acknowledgement
30
The Vision
31
Appendixes Listing
35
Calgary Sports and Entertainment Corporation

Response to Deputy City Managers Report to Council Dated April 25, 2016
West Village CalgaryNEXT Phase One Analysis
BACKGROUND
In August 2015, Calgary Sports and Entertainment Corporation (CSEC), unveiled a bold and exciting vision
called CalgaryNEXT that would transform the west end of downtown Calgary and provide a place for all
citizens to live, work and play. We acknowledged then and now that our initial vision would raise questions
and are encouraged that it has done so.
The Deputy City Manager for the City of Calgary presented West Village-CalgaryNEXT Phase One
Analysis to City Council on April 25, 2016 (the Report). We would like to thank the City and acknowledge
the significant investment of their time in reviewing the information we developed leading to our
presentation in the summer of 2015.
The City has raised a number of issues related to the development of CalgaryNEXT and the entire 130 acres
known as West Village. Notwithstanding the final recommendation contained in the Report and the notion
that the project will cost $1.8 billion versus the $890 million (which we assert is not correct and will address
in the body of our response), we are very encouraged with a number of key findings in the Report that
supported continued evaluation of the CalgaryNEXT project and the recommendation to move into Phase
Two of the evaluation process.
COMMON GROUND
We want to start by highlighting the many points that both the City of Calgary and CSEC agree on which
include but are not limited to:
Calgary needs a new event centre;
Calgary needs a public fieldhouse;
McMahon Stadium does not fulfill a long term commitment to the CFL or local fans
The contamination in the West Village needs to be cleaned up and will be;
The West Village will be developed;
Calgary needs to create legacy projects to continue to enhance our international presence
and economic growth strategy;
All projects involving public funding must ensure clear public benefit;
City projects must be fiscally responsible.
It is our position that the CalgaryNEXT proposal addresses all of these points in a cost-effective manner that
maximizes public benefit and develops much needed sports, recreation and cultural infrastructure for the
City of Calgary.

CalgaryNEXT GUIDING PRINCIPLES

Our vision for an integrated live, work, and play development in West Village is predicated on the
following principles:
1. Anchor Tenant for West Village As the anchor tenant in a live, work, and play development,
CalgaryNEXT will act as a catalyst to facilitate the remediation and development of a vibrant West
Village for the long term benefit of all citizens of Calgary. There can be no greater public benefit than the
creation of a new mixed-use neighbourhood for the citizens of Calgary to enjoy for years to come.
2. Top Recreational Priority Will Be Built CalgaryNEXT addresses the number one recreational priority of
the City a fieldhouse that virtually every other major centre in Canada has already built for the benefit
of all of their citizens. Healthy cities have healthy citizens. From physical fitness training at the fieldhouse
or use of the integrated Bow River Pathway, CalgaryNEXT will ensure Calgary maintains and elevates its
status as one of the healthiest cities in North America.
3. All In One Facility is Fiscally Responsible CalgaryNEXT is a fiscally responsible and innovative
development project. The combination of an event centre, fieldhouse and football stadium represents
an opportunity for the City to deliver meaningful infrastructure investments in a sound and fiscally
responsible fashion.
4. A True Public / Private Partnership $450 Million Injected By CSEC - CalgaryNEXT funding model would
see an investment of $450 million from the private sector for assets that will ultimately be owned by the
City. Over fifty per cent of the estimated direct costs to construct the facilities would be funded from
the CSEC ownership group. We propose a genuine public/private partnership with meaningful, tangible
funding coming from the private sector. No existing taxpayer would see an increase in their property
taxes as a result of our funding formula assuming the City has already determined how it would fund the
construction of the fieldhouse.
5. Long Term Economic Benefit for the City of Calgary CalgaryNEXT will provide for the ongoing positive
economic benefits to the City and Province. In addition to the one-time economic impact of $800
million to the City and Province as a result of constructing CalgaryNEXT, the investment will support
the continued annual positive economic impact of approximately $500 million generated from all of the
operations of Calgary Sports and Entertainment Corporation.

PUBLIC BENEFIT FOR ALL CALGARIANS

In evaluating the CalgaryNEXT project, the phrase public benefit is frequently used. Because CalgaryNEXT
involves public dollars, this is an appropriate consideration as it is important to CSEC that our project has a
substantive positive impact to all Calgarians.
The term public benefit can be interpreted through a number of different lenses. The Citys analysis limited
the interpretation of public benefit primarily to a discussion of cost and of public access to the facility.
While these are critical it is our contention that public benefit should be looked at more broadly and that
CalgaryNEXT does provide significant public benefit in multiple contexts.
We are using public benefit as a measuring stick for CalgaryNEXT so it is important that we acknowledge
what this term encompasses. For the purposes of this report, the following five factors will form the basis of
what we believe public benefit to entail.
Calgarians Benefit from Direct, First-hand Access

and Use of CalgaryNEXT.
CalgaryNEXT is, first and foremost, a public multi-sport facility that fulfills the long unfunded city priority of
constructing a public fieldhouse. The fieldhouse component of CalgaryNEXT will be fully available for public
use for 94% of prime time hours (i.e. weekday evenings and weekends). The fieldhouse will only be used
for CFL football for 10 to 12 games a year during prime time hours. This provides Calgarys amateur sport
community with over 3,500 prime time hours of fieldhouse access per year versus just 240 hours dedicated
to CSEC uses.
During non-prime hours, the Calgary Stampeders will use the field facility for two to four hours on weekdays
from June to November for practice purposes. The gym facility and other parts of the Fieldhouse will remain
open during these practice times. The bulk of non-prime hours will be dedicated to public use and will
accommodate programs from all of Calgarys post-secondary institutions (University of Calgary, Mount Royal
University, SAIT, Alberta College of Art and Design, Bow Valley College) and community based programs.
The close proximity to the downtown will create high demand in off peak hours from the 140,000+ people
that work in the core.
(Source: http://www.calgarydowntown.com/about/resources/facts.html)
CalgaryNEXT will also provide equal access to all Calgarians by being located in a central location in the West
Village with excellent access to primary roadways and public transportation.
As a public facility, the CalgaryNEXT Fieldhouse will implement user fees consistent with City of Calgary
guidelines and will include programs to enable subsidized or free access for low-income Calgarians.
In addition, the Calgary Flames Foundation intends to use its considerable resources to fund health and
wellness initiatives through the fieldhouse.

Calgarians Benefit from Cost-effective

Construction and Operation of CalgaryNEXT.
CalgaryNEXT presents a public benefit by enabling a $330 million construction cost savings by combining
a new event centre, fieldhouse and football stadium into a single project. It also lowers the overall land use
required to meet the multiple infrastructure needs of our city.
Beyond construction costs, CalgaryNEXT will also present a lower overall operational cost to run on a dayto-day basis. By sharing infrastructure, staff and other resources, there will be significant operational costs
savings.
CalgaryNEXTs innovative all-in-one design will address many of Calgarys current sports and cultural
infrastructure needs in a realistic, cost-effective way.
Calgarians Benefit from the Transformative Effect CalgaryNEXT

has on the Development of the West Village.
CalgaryNEXT will be the cornerstone in the development of the West Village. It will jump-start the
development of a new mixed-use neighbourhood as well as stimulate the much needed cleanup of the
contaminated lands.
The City set out an Area Redevelopment Plan for the West Village in 2010 that acknowledged issues
with contamination and necessary infrastructure development. CalgaryNEXT will act as a catalyst for
this development, creating a popular public space that will drive additional residential and commercial
development. Stadium and arena development has shown to be an effective agent of urban renewal in major
centres across North America.
A vibrant, new neighbourhood with CalgaryNEXT as a featured resident will create new economic activity,
a new tax base and a new place for Calgarians to live, work and play.
Calgarians Benefit from the Presence of Successful Professional Sports

through Economic Stimulus and as a Source of Civic Pride.
CSEC is a significant economic driver in the city already with $297 million in direct economic contribution
and an estimated $468 million in economic activity overall related to its activities per year.
What is more difficult to quantify, however, is the benefit that Calgarys professional sports teams provide
to Calgarians as a catalyst for community spirit. In many ways, cities are defined by their sports teams.
Internationally renowned cities around the world share many characteristics, including the presence of
professional sports franchises or elite sporting events. Sports franchises are an element of a citys identity
and are an important piece of a communitys social fabric.

In order to maintain and amplify the positive effects of professional sports, investments must be made to
enhance the game experience for fans and provide the best atmosphere for success. Upgraded facilities
also open the door to playing host to a greater number of international sporting and cultural events that
generates further economic activity as well as adding other recreational activities for city residents
Calgarians Benefit from the Attraction

of World Class Sporting and Cultural Events.
Calgary currently does not have the sports infrastructure to properly host elite international sport events or
premiere cultural events. Instead, organizations or music artists seeking an Alberta host will typically end up
three hours north in Edmonton.
CalgaryNEXT will provide state-of-the-art event centre and indoor stadium facilities that will put Calgary
back on the map as prospective hosts. Furthermore, Calgary will have an advantage over many outdoor
stadiums due to the flexibility of the CalgaryNEXT fieldhouse to host elite sporting events year-round
indoors.
Related to the attraction of large sporting and cultural events, Calgary will benefit from the influx of tourist
dollars from visitors traveling to Calgary to see these events. Major international sport or cultural events drive
thousands of people to host cities, bringing increased business to Calgary hotels, restaurants, services and
other tourist attractions.
New Tax
Base
Created
Benefit of
Professional
Sports
Unlocked
Value
of Land
Cornerstone of
West Village
Development
Creosote
Remediation
PUBLIC BENEFIT
OF CalgaryNEXT
Innovative
World-Class
Attraction
New Public
Gathering
Place
For All
Calgarians
Affordable
Access for
Calgarians
Off-Peak
Hours
Support
Cost Savings
of All-In-One
Facility

FINANCIAL MODEL
THE FACTS
The cost of construction for CalgaryNEXT is $890 million.
The cost of CalgaryNEXT and West Village combined with full remediation and installation of new
infrastructure is $1.13 billion, not $1.8 billion.
The cost of West Village remediation is $50 million, not $85 to $140 million as the City Report
estimated.
The City Report estimated a total public investment of $1.22 to $1.37 billion to develop the West Village
with CalgaryNEXT at its core. Our projections show a total public investment of $682 million.
Over the life of the project, public investment in West Village and CalgaryNEXT will net down to
$151 Million after all positive cash inflows have been accounted.
In August 2015, Calgary Sports and Entertainment Corporation (CSEC), unveiled a bold and exciting vision
called CalgaryNEXT that would transform the west end of downtown Calgary and provide a place for all
citizens to live, work and play. CSECs cost for CalgaryNEXT was $890 million, which was costed using an
approach in line with other large public infrastructure projects in Alberta.
In response to this proposal, the Deputy City Manager for the City of Calgary presented West VillageCalgaryNEXT Phase One Analysis to City Council on April 25, 2016 (the Report) which provided an
overview of the cost of CalgaryNEXT, which they estimated to cost between $1.753 billion and $1.827 billion.
CSEC disputes this cost estimate.
The total cost to construct CalgaryNEXT is $912 million, comprised of the original $890 million cost of
construction plus CalgaryNEXTs proportionate share of land ($9 million) and infrastructure ($13 million).
The more appropriate cost of CalgaryNEXT and West Village combined, before financing, is $1.132 billion
as set out below:

Cost Source City Report

Buildings $890
Infrastructure 327
Land 80
Remediation 140
Total Cost Before Financing

$1,437
Financing Costs 391
Total Cost With Financing
$1,828
Cost Source
City Report
CSEC Value
CSEC Value
$890
112
80
50
$1,132
214
$1,346
Total
Buildings $890 $890 $890

Infrastructure
13
99
112
Land
9
71
80
Remediation
0
50
50
Total Cost Before Financing
$912
$220
$1,132
Financing Costs
161
53
214
Total Cost With Financing
$1,073
$273
$1,346
Building Costs
The cost of the buildings remains at $890 million and has been verified by three independent contractors
who work in Alberta and is agreed upon by both the City and CSEC.
Infrastructure Costs
While the Report allocated the cost of both mandatory and optional infrastructure for the entire West Village
of $327 million to CalgaryNEXT, CSEC would argue that the base case infrastructure investment required to
create the conditions for West Village development is $112 million, not $327 million.
West Village Infrastructure

Optional Enhancements:
- Underpass on 18th Street
- Bow River Pedestrian Bridge
- Other West Village Development
Total Infrastructure per City Report

$112,000,000
80,000,000
30,000,000
105,000,000
$327,000,000
Additionally, the footprint of the CalgaryNEXT project is only 15 acres or approximately 11% of the West
Village and as such, it is reasonable to conclude that, at a maximum, 11% or $13 million of the infrastructure
costs could be borne by CalgaryNEXT.
Land
The Report noted the cost of land to be $80 million and again, allocated the entire amount to the
CalgaryNEXT project. However, as noted above, the footprint of the CalgaryNEXT project is 11% of the
West Village and as such, at a maximum, that 11% or $9 million of the land costs could be allocated to
CalgaryNEXT.
Remediation
The Report estimated that if the entire West Village was remediated upfront, the cost would be between $85
million and $140 million. Whether we proceed with CalgaryNEXT or not, remediation costs will be incurred if
the City plans to develop West Village. The allocation of all remediation costs to CalgaryNEXT is in contrast
to, and would actually undermine, the Citys position for a polluter pays approach to brownfield clean-up.
According to the work that has been completed by our environmental consulting team and using data
provided by the Citys environmental studies, we believe the cost to remediate the site is approximately $50
million. None of the remediation costs should be included in the cost of CalgaryNEXT but rather borne by
the polluters or others (i.e. the Provincial Government) as outlined in the City Report.
Financing
The Report included financing costs of between $371 million to $391 million relating to financing for funding
of $1.15 billion. While fiscally prudent to consider financing costs, the costing approach in the Report
demonstrates a clear departure from the normal approach for Alberta public projects such as the new
Calgary public library, which had no financing costs included.
We believe the financing costs will likely be approximately $214 million, not the $371 million to $391 million
outlined in the Report. We assert this budget line should not be included in the CalgaryNEXT project cost
estimates. Alternatively, if we were to assign financing costs, we assert the CalgaryNEXT project should not
bear the burden of the future interest payments that will be incurred over the next 20 years related to:
interest associated with the construction fieldhouse. The City is going to build a fieldhouse irrespective
of CalgaryNEXT and will need to fund the construction;
interest associated with the remediation of West Village for the reasons outlined above; and;
interest associated with infrastructure investments for the reasons outlined above.
Residual Value of West Village Lands

While the Report determined that the costs of remediation, infrastructure and land for West Village should
all be attached to the CalgaryNEXT project, the analysis did not acknowledge the revenue that would be
forthcoming from selling the remediated, ready to develop land surrounding the project. Remediation and
development of the West Village is an investment in Calgarys city centre that will unlock considerable value.
While the West Village includes approximately 130 acres of prime, underutilized land, only 46 acres have
been identified as fully developable, with the remaining 84 acres containing right of ways and green space
for parks.
10
Of the 46 acres, approximately 15 acres would be required to develop CalgaryNEXT, leaving approximately
31 acres that can be developed. Once the land has been remediated, the infrastructure has been put in place
and CalgaryNEXT has been constructed, it is estimated that the value of the land would be approximately $10
million per acre. Therefore, the estimated revenue on the 31 developable acres is estimated conservatively at
$310 million. Given what we have seen for land value near other large sports projects, there may be further
upside in the value of the land.
CRL
We were very encouraged that the Report estimated the amount of future property taxes that could
reasonably be expected to be generated by the development of CalgaryNEXT (that would form the basis for
the CRL funding portion of the development) to be in the range of $345 million to $435 million. While the
Citys estimated range was less than we had modeled, it was certainly well in excess of the $240 million we
had identified to form part of the overall funding formula. Furthermore, even at the conservative estimate of
$435 million, the CRL is large enough to cover the base costs totaling approximately $402 million including
remediation of $50 million, infrastructure costs of $112 million and a contribution to CalgaryNEXT of
$240 million.
Conclusion
The CalgaryNEXT project has the potential to be a positive project for the City of Calgary. The value is driven
from using CalgaryNEXT as a catalyst to clean up and develop the West Village, therefore driving increased
property values, development, and ultimately taxes. Using a simple, undiscounted cash flow model and the
same assumptions used in the Report for development and CRL revenues, the development of West Village,
including CalgaryNEXT, results in a net cost of $151 million. The City will own a $890 million state-of-the-art,
multi-use sports facility that meets the standard for NHL and CFL events as well as international sporting and
cultural events.

11
CalgaryNEXT
Source
City
Building Cost
($440)
Remediation Cost
(50)
Infrastructure Cost
(112)
Land Costs
(80)
Total Costs
($682)
CSEC
Total
($450)
($890)
0 (50)
0 (112)
0 (80)
($450)
($1,132)
Sale of Cleaned Up Land*

CRL West Village

CRL McMahon Stadium Land

Polluter Pay/Government Support
Total Revenue
$310
435

$745
$0
0
0
0
$0
Net Cash Flow (Outflow)

Interest**

Net Project Cash Outflow
$63
(214)
($151)
($450)
0
($450)
$310
435
$745
($387)
(214)
($601)
* Assumed 31 acres of developable land value of $10M per acre.

** Interest is calculated at 3%, repaid over 20 years for a total of $932M ($682M plus the $250M in user fee).

12
LOCATION
THE FACTS
West Village is uniquely situated to provide adequate space for CalgaryNEXT in a central location.
The West Villages central location provides better transportation access for more people using
a greater number of transportation methods and routes.
CalgaryNEXT will make a positive impact on the development of West Village- both as an anchor
tenant and boosting CRL intake.
The City Report dismisses the West Village location due to conservative assumptions on cost and
timelines surrounding clean-up.
CSEC choose the West Village as the site for CalgaryNEXT following extensive study of a number of different
potential sites. While each site presented their own pros and cons, West Village simply presented the best
available option that enabled cost-efficient construction in a central location.
The West Village can functionally accommodate the physical footprint of the facility in a central location
that provides equal access to all four quadrants of the city. The West Village also provides somewhat of a
blank slate as a brownfield development unencumbered by certain limitations such as the existing planning
framework or insufficient infrastructure in place.
Tying CalgaryNEXT into West Village development also helps the meaningful use of a Community
Revitalization Levy to support facility construction as well as further development of the area in general.
While CRL funding makes up part of CalgaryNEXTs funding model, estimated CRL dollars generated by
CalgaryNEXT, even when using the Citys conservative estimates, goes well beyond our needs. These are
dollars that can be used to continue the overall development of West Village without additional investment
from the City.
Finally, and most importantly, CalgaryNEXT can be a catalyst for meaningful urban renewal in the downtown
core and the development of the West Village. There is a natural synergy between the West Village and
CalgaryNEXT as the facility creates a permanent public hub that will draw people to the area. This, in turn,
will draw investment interest from commercial and residential developers. This development will add millions
in both initial land sales and ongoing economic activity, unlocking the value of the West Village.
Development interest is likely to extend beyond the West Village itself and surrounding areas including the
14th Street mixed use corridor, the Beltline area in and around the 10th Avenue commercial district as well
as the lands in West Connaught south of the CPR right of way. This development activity will add to the
municipal tax base and support the CRL.
The Citys report, in large part, dismisses the idea of a West Village location to be inappropriate due to
contamination issues that would add costs and time delays to the project. In considering the factors above,
as well as points that will be raised in this responses Remediation section, CSEC believes that the West
Village presents a cost-effective and sensible location for CalgaryNEXT.
13
FIELDHOUSE
THE FACTS
The CalgaryNEXT fieldhouse will be a public recreational facility first and foremost.
While the City Report questions the ability for CalgaryNEXT to act as fieldhouse and stadium, the
CalgaryNEXT fieldhouse is designed to accommodate both equally well and will provide greater
flexibility to allow a number of operational configurations and the potential to host larger athletic
and cultural events.
The CalgaryNEXT fieldhouse is an economic solution to fulfilling Calgarys needs for a public
fieldhouse as well as an improved venue for CFL football.
While there is agreement that a fieldhouse is desperately needed in Calgary, different viewpoints exist on
what form it should take, where it should be located and how it should be operated. It is CSECs contention
that the CalgaryNEXT fieldhouse provides economic advantages, superior functionality and greater public
access for all Calgarians.
In the citys analysis of CalgaryNEXT, it was determined that a fieldhouse located near the University of
Calgary in the Foothills Athletic Park was a preferable option for the city. CSEC does not challenge the idea
of a fieldhouse near the University and, in fact, believes that the development of a university fieldhouse and
a public fieldhouse should not be considered to be competitive ideas or viewed as non-complimentary.
Fieldhouse - Prime Time
However, if the intention is to move forward with a single

public fieldhouse in Foothills Athletic Park, there are many
questions that must be answered. To date, there has been no
operating model available for review for a fieldhouse proposal
that would answer questions surrounding public access,
financial model, etc. Without this information, it becomes
difficult to objectively judge the merits of the idea.
While the City Report raised concerns about a stadium
and public fieldhouse being able coexist, the CalgaryNEXT
fieldhouse has established clear commitments to its standing
as a public-first facility. Ninety-four per cent of prime time
hours will be available for Calgarians to use the fieldhouse
to enjoy the sports they love. As mentioned earlier in our
response, the fieldhouse will only be used for CFL football for
10 to 12 games a year during prime time hours. This provides
Calgarys amateur sport community with over 3,500 prime
time hours of fieldhouse access per year versus just 240 hours
dedicated to CSEC uses.

14
While a University based alternative has not confirmed the amount of public hours available, there have
been concerns raised that a university-operated fieldhouse would see decreased public access in favour of
University of Calgary courses and programs. To be considered as a viable option, a public fieldhouse at the
U of C should be able to meet or exceed these standards as well as show operational independence as to not
require ongoing financial support from the City.
In considering capital costs, the CalgaryNEXT fieldhouse looks to be the more economical choice.
Construction of a standalone fieldhouse at the Foothills Athletic Park is estimated to cost approximately
$260 million in public money whereas CalgaryNEXT is seeking just $200 million for the fieldhouse
component. Additionally, whereas the CalgaryNEXT fieldhouse would incorporate a new covered home field
for the Calgary Stampeders, a standalone fieldhouse would require McMahon Stadium, the CFLs oldest
venue, to receive upgrades that would cost between $70 million to $90 million to moderately extend the
Stadiums lifespan.
Design-wise, the CalgaryNEXT fieldhouse would provide greater overall functionality and flexibility than
a basic fieldhouse due to the incorporation of retractable seating which would allow a greater number of
configurations to accommodate activities from track and field to soccer to CFL football. This is simple, proven
technology that will allow timely conversion between configurations and allow CalgaryNEXT to function
effectively as both a public fieldhouse and field sport stadium.
It should also be recognized that the City Report fails to acknowledge the benefits of the innovative concept
of combining a fieldhouse and football stadium. Four municipalities across Canada have recently invested
between $175 million and $300 million to construct new CFL stadiums for the sole purpose of playing 10
CFL home games.
In addition to the economic benefits of combining the two structures, there are significant public benefits
that could accrue to all citizens of Calgary when national and international events are attracted to Calgary
as a result of having an indoor stadium with seating capacity for up to 40,000 spectators.

15
MCMAHON STADIUM
THE FACTS
McMahon Stadium no longer meets CFL standards and will need to be replaced in the near future.
Renovation potential for McMahon is limited due to the age and design of the structure. It cannot
accommodate many features that are incorporated in modern stadium design and are expected by
facility users.
Further study needs to be undertaken to examine the value that McMahon Stadium holds for the
University and the respective benefits of strategic options to repurpose, renovate or redevelop the
area.
Within the City Report, there is mention that an alternate plan would likely include renovations to McMahon
Stadium. While no specific proposal is put forward, it is noted that renovations could range from $2 million
for some simple structural and mechanical renovations to upwards of $89 million for more substantial
upgrades. While CSEC is encouraged to see that the City realizes the need for an improved football
venue, we have to question the logic of spending millions in renovations for stop-gap renovations on an
outdated structure.
McMahon Stadium is the oldest stadium in the CFL by a significant margin. While it is a proud piece of
our history, we should acknowledge that it no longer meets the standard expected of a CFL venue. Four
municipalities across Canada have recently invested between $175 million and $300 million to construct
new stadiums for the sole purpose of playing 10 CFL home games. Being able to provide a state-of-the-art
stadium in conjunction with a public fieldhouse maximizes the utility of the investment as well as brings
Calgary back on par with other CFL cities in providing an enjoyable gameday experience for fans and
sustainable revenue for the Stampeders.
Even with substantial upgrades, the functionality and lifespan of McMahon stadium will not compare to
what CalgaryNEXT can offer Calgarians. Modern stadiums offer not only improved fan experience but
greater operating efficiency, lower maintenance costs and longer life spans. Not to mention, CalgaryNEXT
will provide an indoor stadium space for both CFL games and other major sporting events.
We acknowledge that creation of a new stadium for the Stampeders may affect McMahon Stadiums
viability but see the opportunity that McMahon lands could have for the University of Calgary. We would
suggest that strategic alternatives for McMahon Stadium be examined further as the review of CalgaryNEXT
continues.
While extensive renovation could potentially add years to McMahons functional lifespan, we have to
acknowledge that replacement of McMahon Stadium as a home field for the Stampeders is an eventual
reality. The choice that must be made is whether money is better put to use for temporary fixes to add five
or ten years to an aging facility or allocate those funds to developing a new, state-of-the-art facility that will
serve Calgarians for decades.
16
AGING FACILITIES / CFL COMMITMENT
AGING FACILITIES / CFL COMMITMENT
53

17
TRANSPORTATION / PARKING (ACCESS / EGRESS)

THE FACTS
CSEC has developed an innovative parking and transportation model that will make use of downtown
parking in off-peak hours and reduce traffic intensity around CalgaryNEXT.
Contrary to the City Report, both sides of CalgaryNEXT can effectively be used at the same time and
public access to the fieldhouse will not be affected by events in the event centre.
The addition of CalgaryNEXT will not adversely affect traffic density.
As CalgaryNEXT will be a hub for large sport and cultural events, questions surrounding how Calgarians
will get to the facility are expected. The location of CalgaryNEXT allows access and egress through a variety
of methods- whether by public transportation, private vehicle or through the Bow River pedestrian
pathway network.
Integrated Approach to Parking and Transportation

The CalgaryNEXT proposal makes use of an integrated approach to on-site parking that makes use of on-site
and off-site parking as well as mass transit.
CalgaryNEXT will feature approximately 2,400
underground parking stalls with 300 stalls
being reserved for public fieldhouse use 365
days a year.
In addition to the 2,400 onsite parking stalls,
CSEC will operate an innovative shuttle
service that would see ten full size buses
move Calgarians from parking lots throughout
downtown core to CalgaryNEXT. This service
could be operated in partnership with the
Calgary Parking Authority and/or private
vendors that will make use of the inventory
of downtown parking stalls during off-peak
hours. The CalgaryNEXT parking shuttle
Minimum Dedicated Fieldhouse Parking
system takes advantage of the 23,633 available
public parking stalls located in the downtown core.
This minimizes parking concerns, parking costs and traffic congestion surrounding the facility as well as
providing additional revenue for vacant parking lots during evening hours. We believe that the parking
solution for CalgaryNEXT will be significantly more efficient than the current system at the Scotiabank
Saddledome.

18
SHUTTLE BUS ROUTES & DOWNTOWN PARKING LOCATIONS
Total Available Public Parking Stalls: 23,633

Bo
wR
ive
14th Street
DENSITY DEPICTION
Bow Bow
River
River
WEST
VILLAGE
w
Bo
EAST
VILLAGE
ail
Tr
Public Parking Stalls: 23,633
CalgaryNEXT Shuttle Bus Route and Downtown Parking Lots
36
Both the initial $6 million expenditure for the

STAMPEDE
shuttle buses and the ongoing shuttlePARK
service
will be borne by CSEC. In terms of operators, it is
expected that the service will utilize contractual
services with Calgary Transit and/or a private
operator, in a manner similar to what currently
occurs at sites in Edmonton and Ottawa.
Source: Bunt & Associates
Shuttle Bus
Access to Primary High Capacity Roadways
CalgaryNEXT will be accessible through major roadways such as Bow Trail, 14th Street SW and Crowchild
Trail. Existing road network infrastructure is well positioned to accommodate changes in traffic patterns and
intensity occurring as a result of CalgaryNEXT and a developed West Village.

19
CalgaryNEXT Access and Egress

As most major sporting or entertainment events commence at 7 pm, we estimate that only 20% of all
inbound traffic would arrive on-site during rush hour with the remaining 80% arriving at the tail end of or
post-rush hour. Events will conclude well past any peak traffic times with major roadways only carrying
volumes of 25% to 35% of their peak capacities.
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
00
0:
00
1:
00
2:
00
3:
00
4:
Total Traffic Volume
00
5:
00
6:
00
7:
00
8:
00
9:
:0
10
00
:
11
:0
12
:0
13
:0
14
Additional CalgaryNEXT Traffic Volume
:0
15
:0
16
:0
17
:0
18
:0
19
:0
20
:0
21
:0
22
:0
23
Peak Gameday Traffic Period
Total 24-Hour Traffic Volume Data: Crowchild Trail - South of Bowness Road, 14 Street SW - North of
Weekday Vehicular Traffic Volume: Bow Trail, Crowchild Trail and 14th Street
6th Avenue,Bow Trail SW - West of Crowchild Trail and CalgaryNEXT Traffic Volume
All told, the development of CalgaryNEXT would result in total traffic volumes no greater than current peak
volumes experienced today.
20
Concurrent Use of Facility Components

As the operator of CalgaryNEXT, CSEC has full control of their team schedules as well as scheduling for other
events such as concerts. As such, CSEC will not schedule high volume sport or cultural events at the same
time and therefore no adverse effect on transportation is expected.
Both halves of CalgaryNEXT will be able to be used concurrently as the fieldhouse will be available for public
use during Flames games and other events in the event centre. Public access will not be infringed upon as
the fieldhouse will have separate and dedicated entrances as well as reserved underground parking for public
users of the fieldhouse.
Complete and Comprehensive Transportation Assessment

We concur that a complete and comprehensive transportation assessment is required. The transportation
exercise provided a preliminary transportation overview intended to determine high-level constraints,
opportunities and best practices for managing event transportation demands for the site. The study itself
specifically noted the need for a more detailed Transportation Impact Assessment to be completed later
in the process to support Land Use and/or Development Permit applications. However, the analysis
completed in the preliminary overview did provide the necessary details to support the expected peak
design conditions.

21
REMEDIATION
THE FACTS
Remediation of the West Village is financially viable - $50m in total for the entire West Village site.
The City Report states that construction of CalgaryNEXT could not start until between 2022 and
2026 due to remediation. In fact, remediation and construction activities will take place concurrently,
reducing overall project time and allowing construction to begin as early as 2018.
The City Report states that the polluter should pay for the costs of remediation and CSEC agrees
with this.
Cleanup of the proposed West Village has been a key driver in discussions surrounding the feasibility of
CalgaryNEXT. Decades old creosote contamination of the area has been an unaddressed issue for the city
and the cost of clean-up versus containment of contamination has limited the potential of what would
otherwise be prime, riverfront real estate.
The Citys analysis provided some good news in that estimated clean-up costs for the West Village were
on the lower end of the expected spectrum at between $85 million to $140 million depending on clean
up method. Our own independent study pegged the total cost even lower at $50 million for complete
remediation of the West Village.
As a strong first step toward the remediation and development of the West Village, clean-up costs associated
strictly with the CalgaryNEXT project are estimated to be $10 million as remediation and initial construction
will be complimentary activities and create both cost and time efficiencies.
This concurrent approach would significantly reduce the time to start development from the 6 to 10 years
outlined in the City Report to just 2 to 3 years. According to our environmental consulting team and the
information we received from the Citys environmental study, a project of this size and scale would not
normally be completed in a linear fashion with remediation being one-hundred per cent complete before
any construction would commence. In fact, most projects like this would see the majority of the remediation
work take place at the same time as construction would occur.
This method was followed by the False Creek Development in Vancouver which had almost identical
contamination issues to the West Village. Construction and remediation have both been occurring
simultaneously over the past 25 years and continues today. In combining the remediation with the
construction, you effectively limit the remediation costs to the incremental costs that would be incurred
to handle contaminated material excavated as part of the construction project. As was realized in the
False Creek Development in Vancouver, the remediation costs were significantly reduced following
such a process.

22
False Creek Remediation
Source: City of Vancouver Archives
1982
2010
We expect other developments to realize similar synergy as the process of removing earth to construct
building foundations provides a jump start on removing contaminated soil. Simple building design features
to prevent or minimize vapours escaping from any remaining contamination are easily integrated and will be
effective as a safety control.
Of course, remediation of the CalgaryNEXT land is only part of the overall required action. Staged
implementation of remediation of individual land parcels will be integrated with development activities to
reduce costs, provide budget surety and better balance income with expenditure as the West Village comes
to life.
Beyond just opening the door for new development, remediation unlocks the sizeable value of beautiful,
riverside land in Calgary. As previously mentioned, we put a conservative estimate of $10 million per acre of
clean, remediated West Village land. For a $50 million investment into West Village remediation, the city of
Calgary stands to unlock six times that figure in just initial land sales of 31 acres- not to mention the ongoing
economic activity and sizeable new tax base that a vibrant neighbourhood provides.
Beyond unlocking the amazing potential and value of the West Village, remediation activities will also
prevent further migration of creosote and other chemical contaminants present on site from continuing
to migrate into the Bow River. Protection of the Bow River is of vital concern to the City of Calgary and to
southern Alberta in general and we have already waited too long to address this issue.

23
ALIGNMENT WITH CITYS SIX GUIDING PRINCIPLES

FOR THE WEST VILLAGE
(Pg. 3 & 19 of 29 from City Report)
PRINCIPLE ONE
Public money must be used for public benefit.

While CalgaryNEXT will be the home to the citys professional sports franchises, it will first and foremost be a
public facility owned by the City of Calgary and operated by the Calgary Sports Entertainment Corporation.
Public money required for CalgaryNEXT will be limited to funding for the public fieldhouse and CRL funding,
which the City has already stated would be used for West Village development without any detrimental
impact to city finances.
CalgaryNEXT will provide substantive public benefits in terms of fulfilling infrastructure needs, maximizing
public investment and developing a state-of-the-art venue to serve Calgarians for decades to come.
Element of Principle
How CalgaryNEXT meets principle
Public access to facility
The CalgaryNEXT Fieldhouse will dedicate ninety-four per cent of primetime hours to public use. The central location of CalgaryNEXT will ensure
equal access to all Calgarians.
Efficient use of public

dollars
Combining a new arena/event centre and a public fieldhouse will address

multiple sports and recreation infrastructure needs. CalgaryNEXT will be
funded by CSEC ($450 million) and the City ($440 million). The facility
will be owned by the City but all operating expenses will be paid by
CSEC, requiring no operational funding from the City.
Development of the West

Village is a tangible public
benefit
CalgaryNEXT will act as a catalyst for West Village remediation and

development. CalgaryNEXT will act as an anchor tenant- establishing a
prominent permanent resident and attracting residential and commercial
development. Developing West Village will unlock substantial land value
of prime real estate that is currently contaminated and under-utilized.
Professional sports
present a public benefit to
city residents
Professional sports offer residents with a unique recreation option and

boosts civic pride. Professional sports also offer a significant economic
benefit to a city- CSEC generates over $500 million in economic
activity annually.

24
PRINCIPLE TWO
There must be exhaustive stakeholder consultation, public engagement,

and open and transparent communication with Calgarians regarding the
CalgaryNEXT proposal.
Calgary Sports Entertainment Corporation is committed to public consultation with Calgarians before ground
is ever broken for CalgaryNEXT. As CalgaryNEXT will be a public facility first and foremost, it is vital that
together with the City of Calgary, we educate Calgarians on what CalgaryNEXT will provide and receive their
feedback on how it would best serve their needs.
To examine CalgaryNEXT and all alternatives, CSEC would propose to undertake a series of public
consultation events in conjunction with the City to present different scenarios to Calgarians and receive their
feedback on what works best for them.
Stakeholder meetings
CSEC has held 35+ stakeholder sessions as of June 15, 20-16. Attendees
have included but not limited to the Calgary Multisport Fieldhouse
Association, Calgary Progress Club, Calgary Regional Partnership
Association, Calgary Economic Development Board, Tourism Calgary
Board, Calgary Real Estate Board, Calgary Real Estate Forum, SAIT,
EO/YPO, Calgary Food & Drug Association, Calgary Home Builders
Association, Sports Calgary Board, NAIOP, Ranchmens Club Members,
Glencoe Club Members and several Calgary Rotary Clubs
Future CalgaryNEXT
open houses
CSEC has committed to extensive public consultation. To that end, we

propose a series of events over the next several months to speak with
Calgarians and listen to their expectations and needs so we can build a
facility that best meets the public need.
Open and transparent

communication
We have made direct communication with Calgarians a priority through

both our website and social media accounts. All major documents,
including this report, will be made available to the public.

25
PRINCIPLE THREE
West Village must be designed and developed

as a vibrant mixed-use neighborhood.
CSEC is an ardent supporter of West Village development and sees a symbiotic relationship between
the neighbourhood and CalgaryNEXT. Having an anchor tenant within the West Village would assist in
encouraging further interest for residential and commercial development.
Having a large scale public-focused centre ensures developers of a strong ongoing community presence in
the area and is a positive factor as they make their investment decisions. Professional sport facilities have
been catalysts of urban change in several centres throughout North America including the Verizon Centre
(formerly MCI Centre) in Washington DC, Camden Yards in Baltimore and, closer to home, the ICE district
in Edmonton.
Remediation of
West Village area
CalgaryNEXT will begin the remediation of the West Village.

Construction of CalgaryNEXT would be done concurrently with site
remediation, cutting total construction time and cost.
West Village as a vibrant

mixed use community
CalgaryNEXT will act as an anchor tenant in the West Village- a

permanent resident that draws both residential and commercial
development interest to the area. Stadium development can have a
transformative effect on an area as commercial development follows to
take advantage of game day crowds.
The West Village must be

developed
In the citys development plan for the West Village, a Community

Revitalization Levy is proposed, stating that a CRL would have no
negative effects on city finances. The City Report acknowledged the
positive impact CalgaryNEXT would have on CRL funding.

26
PRINCIPLE FOUR
Any new fieldhouse must meet the needs of all stakeholders including but not
limited to, the University of Calgary, amateur sports groups, and the general
public.
CalgaryNEXTs fieldhouse component will be a state-of-the-art facility that will enable Calgarians to enjoy
the sports they love 365 days a year. The Calgary Multisport Fieldhouse Society has examined our proposal
and have gone on record that the CalgaryNEXT fieldhouse will meet the needs of Calgarians.
The CalgaryNEXT fieldhouse also meets the needs of an additional stakeholder by providing a new home for
the Calgary Stampeders - investing in our CFL franchise, improving the game day experience for fans and
replacing an aging and ineffective McMahon Stadium.
CSEC believes that a centrally located fieldhouse that is accessible to Calgarians from all parts of the city
as well as all of our post-secondary institutions (University of Calgary, Mount Royal University, SAIT, Alberta
College of Art and Design and Bow Valley College) provides Calgarians with the largest public benefit.
Fieldhouse location
CalgaryNEXT will provide a public fieldhouse at a central location that is

equally accessible to all Calgarians including all of our post-secondary
institutions.
Commitment to
public access
CalgaryNEXT has committed to ninety-four per cent of all prime time

hours be allocated to public use.
Flexible design to meet

stakeholder needs
The design of the CalgaryNEXT fieldhouse will emphasize flexibility

and functionality by using features such as retractable seating and
easily installed seating expansion. This will allow a greater amount of
customization of the space to accommodate different activities as well
as open up the potential to host large-scale indoor sport events at an
international level.

27
PRINCIPLE FIVE
Any new stadium/event facility located within or near Calgarys centre city,
must complement the existing amenities of the centre city, and contribute to
the centre citys long term vibrancy and appeal.
The west side of Calgarys downtown core lacks the same vitality as the city centre. CalgaryNEXT would
help reinvigorate the area, drawing Calgarians to the district for both amateur and professional sports.
The Citys Report acknowledges that CalgaryNEXT would be a boon to downtown vibrancy.
West Village as a vibrant

mixed use community
CalgaryNEXT will act as an anchor tenant in the West Village- a

permanent resident that draws both residential and commercial
development interest to the area. Stadium development can have a
transformative effect on an area as commercial development follows to
take advantage of game day crowds.
Contributing to city
centre vitality
Downtowns west end, as it stands, is underutilized and undervalued.

CalgaryNEXT will be a prominent public place for the enjoyment of
amateur and professional sport. Commercial and residential development
will follow as business will seek to capitalize on a renewed energy in the
neighbourhood. Ultimately, a vibrant West Village with CalgaryNEXT at
its core will bring new energy to the west end of downtown Calgary.

28
PRINCIPLE SIX
The cost for remediating contamination of the West Village site should be
the responsibility of the polluter(s), to the extent that such recovery is
legally possible.
Calgary Sports Entertainment Corporation wholeheartedly supports the polluter pay model. However, given
the historical nature of the contamination and the fact that the original polluter was bought out and no
longer exists, it is reasonable to assume that legal proceedings to compel financial compensation may be
complicated and drawn out.
As such, the CSEC advocates for pursuing legal action in conjunction with the start of construction
and remediation of CalgaryNEXT and the West Village. Given the need for soil removal and treatment,
initial construction involving the laying of foundations provides the opportunity to remediate and build
concurrently.
Polluter pay model
The CSEC supports the polluter pay model. Legal action to pursue
reclamation costs should proceed in conjunction with beginning work on
CalgaryNEXT and the West Village.
Contamination of the
West Village must be
remediated
Construction of CalgaryNEXT will begin the remediation of the

West Village, setting the stage to unlock potentially valuable land
for development as well as protect the Bow River from ongoing
contamination.

29
PLAN B ACKNOWLEDGEMENT
While CSEC sees the current CalgaryNEXT proposal as an effective and sensible solution to Calgarys sport
and recreation infrastructure needs, we are committed to working with the City on exploring every option to
ensure we find the best possible solution.
Following the Citys Report, we were asked to participate in a review of a Plan B that would see separate
facilities built and a renovation of McMahon stadium. At this point, Plan B seems to be in an early stage of
development and lacks any sufficient detail to judge its merits. We look forward to reviewing specifics when
they become available.

30
VISION
The development of the West Village is rooted in creating a vibrant, public destination that reinforces
Calgarys character and connects people through an integrated system of pathways and nodes of activity.
The West Village development will extend Calgarys urban core, encouraging social engagement, recreation,
and public gatherings.
CalgaryNEXT will propel the West Village revitalization by stimulating the growth of a vibrant, mixed-use
inner-city community that provides new places for people to LIVE, WORK & PLAY.
New residents of the West Village will be drawn to elements of the neighbourhood that promote exploration
and interaction. From the natural beauty of pedestrian paths tracing the path of the Bow River to the centre
of sport excitement in Calgary at CalgaryNEXT, the West Village will pull Calgarians from across the city to
embrace the new community.
We envision close to 6,000 Calgarians calling the West Village home and thousands of others visiting the
area regularly to embrace the energy of a resurgent west downtown. With the influx of both residents and
visitors, equal commercial development will follow to serve this local population, completing the promise of
West Village to be the perfect place to LIVE, WORK & PLAY.
FIELDHOUSE - SPECIAL EVENT MODE

31

32

33

34
APPENDIXES
Appendix One Economic Impact Study by R P Erickson & Associates dated March 2016
Appendix Two Review of Environmental Assessment of West Village Redevelopment and

CalgaryNEXT by Burgess Environmental dated June 2016
Appendix Three CSECs Response to the CRL portion of the Citys Phase One Analysis of
CalgaryNEXT
Appendix Four CSECs Response to the Financial Analysis portion of the Citys Phase One
Analysis of CalgaryNEXT
Appendix Five CSEC PowerPoint Presentation

35

CalgaryNEXT Response To DCM Report

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Calgary Sports and

Response to Deputy City

CalgaryNEXT Guiding Principles

Public Benefit For All Calgarians

Transportation / Parking Access / Egress

Alignment With The Citys Six Guiding

Calgary Sports and Entertainment Corporation

Calgary needs a new event centre;

Calgary needs a public fieldhouse;

The West Village will be developed;

City projects must be fiscally responsible.

Calgary Sports and Entertainment Corporation

CalgaryNEXT GUIDING PRINCIPLES

Calgary Sports and Entertainment Corporation

PUBLIC BENEFIT FOR ALL CALGARIANS

Calgarians Benefit from Direct, First-hand Access

Calgary Sports and Entertainment Corporation

Calgarians Benefit from Cost-effective

Calgarians Benefit from the Transformative Effect CalgaryNEXT

Calgarians Benefit from the Presence of Successful Professional Sports

Calgary Sports and Entertainment Corporation

Calgarians Benefit from the Attraction

Calgary Sports and Entertainment Corporation

The cost of construction for CalgaryNEXT is $890 million.

Calgary Sports and Entertainment Corporation

Cost Source City Report

Buildings $890 $890 $890

West Village Infrastructure

Calgary Sports and Entertainment Corporation

Residual Value of West Village Lands

Calgary Sports and Entertainment Corporation

Sale of Cleaned Up Land*

Net Cash Flow (Outflow)

* Assumed 31 acres of developable land value of $10M per acre.

Calgary Sports and Entertainment Corporation

Fieldhouse - Prime Time

However, if the intention is to move forward with a single

Calgary Sports and Entertainment Corporation

Calgary Sports and Entertainment Corporation

AGING FACILITIES / CFL COMMITMENT

AGING FACILITIES / CFL COMMITMENT

Calgary Sports and Entertainment Corporation

TRANSPORTATION / PARKING (ACCESS / EGRESS)

The addition of CalgaryNEXT will not adversely affect traffic density.

Integrated Approach to Parking and Transportation

Calgary Sports and Entertainment Corporation

SHUTTLE BUS ROUTES & DOWNTOWN PARKING LOCATIONS

Total Available Public Parking Stalls: 23,633

Public Parking Stalls: 23,633

CalgaryNEXT Shuttle Bus Route and Downtown Parking Lots

Both the initial $6 million expenditure for the

Source: Bunt & Associates

Calgary Sports and Entertainment Corporation

CalgaryNEXT Access and Egress

Total Traffic Volume

Additional CalgaryNEXT Traffic Volume

Peak Gameday Traffic Period

Concurrent Use of Facility Components

Complete and Comprehensive Transportation Assessment

Calgary Sports and Entertainment Corporation

Calgary Sports and Entertainment Corporation

False Creek Remediation

Source: City of Vancouver Archives