Future of downtown development to be debated over 2 days at Edmonton public hearing

Dozens of Edmontonians will be sharing their opinions on the future of downtown development as a two-day public hearing kicks off Thursday morning at city hall. 

According to the Office of the City Clerk, as of 4 p.m. Wednesday, 72 people had registered to speak at the special public hearing on whether city council should extend the downtown Community Revitalization Levy (CRL) by 10 years. 

CRLs, which allow cities to borrow money against future property tax revenues, are a way to finance development in places where revitalization might not otherwise happen.

When property values within a CRL area increase, a municipality can use the additional taxes to pay down the cost of borrowing for special projects there.

Edmonton has three CRLs, and the downtown one — established in 2015 — is set to expire in 2034. City officials say extending it by a decade would allow the city to fund more projects and implement a downtown action plan. 

The terms of the extension, and who stands to benefit from public and private investments in the core, have become contentious — and there are millions of dollars at stake. 

The extension's supporters are calling it a "generational opportunity" to improve the city without raising taxes while critics are questioning why a privately-run event park should be included in the deal.

What's new in the plan?

The extension would add some new projects to a list that includes already completed ones like the downtown arena, community rink and Alex Decoteau Park.

Infrastructure for new housing in Ice District, expanding the Winspear Centre, improving LRT entrances, brownfield remediation and the event park are among the additions.

The province, the City of Edmonton and OEG Sports and Entertainment announced earlier this year that they were closing in on a deal that included a new all-season event park.

The province would pay $97 million and OEG would pay $84 million with the remainder — $69 million — coming from the City of Edmonton through the CRL extension.

The current CRL also has a number of projects that are in progress, like Warehouse Park, north of Jasper Avenue, between 106 and 108 Streets, and a pedway on 103A Avenue.

Has the CRL worked?

A recent city report says the CRL has attracted new investment and spurred development downtown to the tune of $4.7 billion.

"I think that the CRL makes sense to a lot of proponents because it's worked with the arena project before, and so it's seen as a continuation of that," said Dan Mason, a sport management professor at the University of Alberta who consulted on the arena deal but has no involvement in the extension.

The city report said the CRL brought three new office towers and thousands of new residential units downtown.

Edmonton Mayor Amarjeet Sohi said he's keeping his mind open but the CRL has helped transform downtown — and there is still more work to do.

"We may not be where other downtowns are in North America, but we are on the path to do so and things are getting better and we just cannot lose momentum," he said at a news conference Tuesday.

Though downtown generates less property tax revenue than it used to for the city, Sohi said reversing that trend would benefit all Edmontonians.

Sohi also said investors consider the state of a city's downtown as a factor when deciding where to bring their business.

Who benefits?

Some downtown business groups and organizations — like the Edmonton Chamber of Commerce, the Edmonton Downtown Business Association and the Downtown Revitalization Coalition — are urging city councillors to support the extension.

They say the CRL isn't just about improving downtown but strengthening the entire city's economy and infrastructure.

"From housing to transit to public safety, the CRL enables a more livable and investable city without raising taxes," the groups said in a June 20 news release.

Some of the CRL extension's critics are zeroing in on the event park as a reason not to support it.

The event park would be a city-owned facility east of Rogers Place, with space for more than 6,000 people outside and more than 2,500 inside. 

While the city would own the facility, it would be privately run, with one-third of booking time or space available for community groups and non-profits at below-market rates. 

A report submitted to the city from OEG said the new venue would help fill a gap in the market and bring customers to downtown businesses. 

Councillors asked administration to have the company's economic benefit estimates independently assessed. The city's analysis concluded the company's assumptions around economic impact were fair and reasonable.

Mason, the U of A professor, said it all boils down to whether investing in the event park and the other proposed developments is the best way to achieve downtown revitalization.

"The argument is over whether or not this type of development and these types of subsidies warrant that kind of investment or whether that money could be spent on something else that could also lead to this kind of conclusion," he said.

Chelsea Tessier, co-owner and head brewer at Polyrhythm Brewing, north of downtown, said she likes the CRL as a model but she and her partner don't support the structure of the proposed extension. 

"We'd like to see more diversity and these funds being spread out around downtown," she said. 

She said other small business owners feel the same and would like to see other parts of the city revitalized.

Other business owners and organizations have shared arguments for and against the extension with CBC News this week. 

Sylvester Borowka, who owns the restaurant Continental Treat, said he supports it because it could lead to increased foot traffic downtown and strengthen community.

Several city councillors have criticized parts of the deal.

Ward Nakota Isga Coun. and mayoral candidate Andrew Knack says he wants to remove "financially irresponsible aspects" from the extension. He'll be sharing his plan to do that at news conference before the hearing on Thursday morning.