Developer cash moves S.E. road work up city’s priority list
Planned construction to see earlier start after developer kicks in $13M for project
A southeast Calgary interchange that was slated to begin construction several years down the road has been accelerated after developers stepped forward with $13 million, prompting a commitment from the province.
Construction of a new interchange at Deerfoot Trail and 212th Avenue could begin this summer, with completion expected by the winter of 2018, after the province announced support in last week’s budget for a project the city had previously planned to start building ramps for in 2023-24.
Calgary’s city council got a closer look at the deal earlier this week, which will see the city front the cost of construction for the $39-million interchange between the communities of Cranston and Seton.
The city will be repaid twothirds of the final interchange cost by 2024, with the money split between the province and Brookfield Residential Properties, a developer for the area adjacent to the interchange.
"(Brookfield) made a great case, plus they stepped up with a third of the funding,” Transportation and Infrastructure Minister Brian Mason told reporters at the Alberta legislature after the NDP budget was released last week.
Mason said the partnership demonstrates the province, city and private sector can collaborate to get badly needed infrastructure built.
But the deal had some councillors at Monday’s meeting questioning how a project scheduled to start construction in at least six years, under the city’s 10-year infrastructure plan, could jump the queue.
“I was a bit bemused when I saw the report the province had funded this one, to the exclusion of many other priorities that we’ve identified, including flood,” Coun. Druh Farrell said. “Why did this rise to the top?”
The city’s general manager of transportation stated three reasons: the three-party arrangement allowed the province to stretch its funds; the bridge will support the nearby South Health Campus hospital; and the connector supports a priority growth area.
"(Brookfield) were the ones that came forward and agreed to make a contribution, which is not within their obligations for the area, but they agreed to do so to get the province to accelerate the construction of the interchange,” Mac Logan said in council chambers.
In an emailed statement, Brookfield spokesman Kurt Kadatz said details are still being confirmed, but it’s likely other developers will contribute to Brookfield’s portion of the bill, expected to be up to $13 million. “We believe that this is an investment in community — helping to support much-needed infrastructure and acting as an enabler of associated developments, such as businesses, homes and schools in this area,” Kadatz said.
Mayor Naheed Nenshi said Tuesday he hopes the support from the province doesn’t set a precedent for the NDP government funding projects that aren’t on the city’s priority list, though he noted that’s not the case here.
“If this were a case of pure queuejumping, something that wasn’t on our list at all and it obviously got there as a result of aggressive lobbying by a private developer, I would be much more concerned," he said.
Mason was not made available to answer questions about the partnership of the city, province and developer this week, with his press secretary stating the project’s memorandum of understanding is being completed and more details are expected in the coming weeks.