The City of Calgary, Alberta government and Calgary Flames ownership took a first step toward building a new events center and surrounding district on Tuesday.

The Calgary Flames are one step closer to getting a new building. 

The City of Calgary, Government of Alberta, Calgary Sports and Entertainment Corporation (CSEC) and Calgary Stampede announced they have agreed in principle on moving forward with a plan for a new event center and a revitalized Rivers District. 

Calgary city council unanimously approved the agreements in principle on Tuesday.

The development plan also includes a 1,000-seat community rink and practice facility for CSEC, improvements to public infrastructure and connections to the district, and commercial opportunities in the area. 

“This project is another signal to the market that Calgary is making strong investments in its future,” said Calgary Mayor Jyoti Gondek at Tuesday's conference.

“The partnership approach we have taken accomplishes two things: we are building an event center, and we are also creating the public amenities needed within the Rivers District to build community and enhance quality of life for all Calgarians.”

The City of Calgary is expected to contribute $537.3 million to fund the development of the event center, 25 percent of the community rink and more, according to Tuesday's announcement. CSEC is expected to contribute $356 million in present value, with the provincial government contributing $330 million. The Calgary Stampede also agreed to a land swap to make room for this development.

The city-owned event center itself is estimated to cost $800 million and will be the new home for the Calgary Flames, AHL Wranglers, WHL Hitmen and NLL Roughnecks. In contrast, the 40-year-old Scotiabank Saddledome is expected to be demolished. 

At the moment, there is no timeline on when construction could start and no details on the capacity of the event center, as definitive agreements must be reached first.

CSEC president-CEO John Bean recently said he spoke with NHL commissioner Gary Bettman prior to the press conference, and this new center would put Calgary in the rotation to host events such as the NHL draft and All-Star Game. Bettman said in May 2022 that for any hope of hosting league events, Calgary needed a new building.

The city and CSEC previously had an agreement in 2019 to build a new events center, but costs rose significantly, and there were concerns about the relevant infrastructure needs that led to the agreement ending on Dec. 31, 2021.

This time around, the agreements take into account a larger plan for developing the district, including the necessary infrastructure, rather than focusing on one building.

By reaching an agreement in principle, all sides will now meet to negotiate and hammer out the specifics of the deal in the coming months.