Edmonton mayor celebrates downtown investments, restored grants in Alberta budget

After years of criticizing the provincial government for shortchanging Edmonton, Mayor Amarjeet Sohi says the province's latest budget, which restores provincial grants in place of property taxes and funds downtown revitalization projects, is a step in the right direction.

The budget includes $106 million for three projects in Edmonton's core: $52 million for a public event park beside Rogers Place, $36.5 million for the demolition of the Coliseum and $16 million for servicing future housing in Ice District.

The budget also increases grants the province will pay in place of property taxes on its eligible properties in the city.

Sohi has said the government's reduction of these grant payments has disproportionately affected Edmonton and that their restoration is "a big win" for Edmonton.

"Our persistent and data-based advocacy on behalf of Edmontonians is paying off," he said at the legislature on Thursday.

The new budget also includes $179 million for Edmonton LRT extension projects and $21 million for low-income transit and homelessness support.

Ashley Salvador, the councillor for Ward Métis, said even though city council committed to fund the demolition of the Coliseum, she was pleased to see the province step up to pay for it. 

"That helps unlock opportunities for additional housing and the ultimate redevelopment of Exhibition Lands," she told CBC News. 

Both Sohi and Salvador said while the budget has some good news for Edmonton, there is still work to be done to correct longstanding inequities between Alberta's biggest cities. 

Edmonton's wish list, which Sohi shared with reporters on Monday, not only called for reinstating the grants in place of taxes program, but providing retroactive funding to 2019, something the province did not do. Edmonton also asked for compensation for higher local election costs.

"While the $15 million per year in grant funding is welcome, it will not address Edmonton's looming infrastructure crisis or our $2-billion deferred maintenance challenge," Ward pihêsiwin Coun. Tim Cartmell said in a statement following the budget's release.

Cartmell, who is running for mayor in the next municipal election, said all governments should be working together to protect the city's interests with potential U.S. tariffs looming.

Downtown investments

The provincial government previously agreed to contribute $330 million for infrastructure surrounding a new arena in Calgary.

Sohi told reporters on Monday that he believed Edmonton deserved an equivalent amount from the province. Edmonton taxpayers paid for the lion's share — more than $300 million — of the costs of building Rogers Place.

OEG Sports & Entertainment was going to start work on an urban village in the area last year but the company told city council pandemic-related challenges and a slow-to-recover real estate market had delayed the plan.

Kris Sims, the Alberta director for the Canadian Taxpayers Federation, criticized the government for putting millions of dollars into Ice District, saying taxpayer money should not go to corporate welfare.

"Companies should use their own money to play investment banker, not taxpayers' money," she said.

OEG executive vice-president Tim Shipton said in a statement on Thursday that the downtown work will boost the economy, improve safety, increase public spaces, add events and create housing. 

Cheryll Watson, chair of the Downtown Revitalization Coalition, said more development will draw people downtown.

She pointed to the fan park, just east of Rogers Place, as a recent example. 

"When you think specifically about that event park, we've already seen how much activation happens around game times and big events, and so we believe that the further development of this is just going to encourage more people to see our downtown as a place to live," she said.

Other Edmonton investments

The provincial budget also includes several multi-million-dollar investments for Edmonton post-secondary institutions, including $110 million for MacEwan University's business school, $4 million for planning and design funding for a new career skills centre at NorQuest College, and $100 million for the redevelopment of the biological sciences building at the University of Alberta.

"This is great news for our researchers, great news for the research impact of the University of Alberta and also great news for our students," said U of A president and vice-chancellor Bill Flanagan.

Edmonton's Terwillegar Drive and Yellowhead Trail construction projects will receive $106 million and $84 million, respectively, 14 new school projects will receive planning and design funding in the Edmonton area and $2 million will go toward creating 350 more beds at the Grey Nuns and Misericordia Community Hospitals.