Photo credit: globalnews.ca
The recent agreements surrounding the development of a new event centre in Calgary have paved the way for the Calgary Stampede to receive nearly $90 million from the city through a series of land transactions. This financial figure was disclosed in a briefing note directed at city councillors, although the details of the land exchange agreements remain largely confidential.
According to the briefing, the Stampede achieved a financial gain of $89.9 million through these land deals, which encompass a $23 million land sale and a $66.9 million land swap. Calgary Stampede CEO Joel Cowley remarked that much of this gain is considered “largely a paper gain.” He explained that it arises from the disparity between the current fair market value of the properties sold or exchanged and the book value derived from historical valuations dating back to the 1990s.
These agreements facilitated the city’s ownership of the land earmarked for the construction of Scotia Place, while the properties exchanged are reportedly of equivalent value. Furthermore, the City of Calgary gained jurisdiction over the roads in the vicinity that were formerly managed by the Stampede.
Among the properties obtained by the Calgary Stampede as part of this agreement is the location of the Saddledome, which will be available for development once it is demolished. Cowley mentioned plans to design a hotel on the nearly two-acre Weadickville site, alongside prospects for two additional hotel projects adjacent to both the BMO Centre and Cowboys Casino, potentially adding nearly 1,000 hotel rooms to the area.
“This initiative will undoubtedly enhance the BMO Centre’s capacity to act as a premier convention venue, boosting economic activity by attracting visitors who will support local accommodations and dining establishments,” Cowley stated.
As developments proceed, it’s noteworthy that the Stampede’s land transactions contributed significantly to increasing the size of Scotia Place by 40 percent compared to the prior agreement. Additionally, the city acquired another two acres of land from the Stampede across from the Scotia Place site on the western side of Stampede Trail.
As part of the agreements related to the event centre, the City of Calgary is offering Calgary Sports and Entertainment Corporation (CSEC) the opportunity to purchase up to four adjacent parcels within two years of the new centre’s opening. CSEC will also gain the right of first refusal for the development of the Calgary Transit bus barns located in Victoria Park over the next decade. Any offers from CSEC for these land options will need to reflect “fair market value,” as determined by a mutually agreed-upon assessor.
Economist Moshe Lander from Concordia University believes this trend of leveraging land transactions alongside arena developments is becoming increasingly common across North America. He noted that Calgary’s large underdeveloped land parcels represent significant opportunities for additional investment and revenue generation beyond traditional ticket sales and broadcasting rights.
Lander highlighted the finite nature of event centre revenue, noting that the potential for maximizing ticket prices is limited. As a result, venues are increasingly looking at adjacent land as a new revenue stream. Cowley revealed that the proceeds from the recent land transactions allowed the Stampede to allocate $25.4 million toward debt reduction and another $4.2 million into working capital.
The lease for Scotia Place is scheduled to commence in September 2026, with the opening anticipated in the fall of 2027.
Source
globalnews.ca