Councillors worry about city’s clout on new board

Edmonton would fund nearly half of the base budget of a new regional economic cheerleader, but only have one vote at the table.

That set city council on edge Tuesday as they debated whether to throw in their hat, but regional leaders said it’s been critical to getting all parties at the table.

Denver, Toronto, London — “every other place has exactly that model,” said Mary Cameron, head of the interim board for the fledgling agency.

Edmonton will be one shareholder electing a board. Business leaders on the board will help brand the region and push it to compete on a global scale, she said.

Edmonton has roughly 65 per cent of the population in the capital region. That has sometimes led to a lack of trust at the Capital Region Board, where it holds a veto because of its size.

Cameron said Mayor Don Iveson endorsed the one-vote model earlier this year, and it’s been critical to winning over skeptics in the region. All local municipalities have until May 24 to vote yes or no.

“We’re paying a big percentage and we just have one vote?” asked Coun. Ed Gibbons, sounding surprised.

“I think it’s a really good thing to do ... (but) we’re the primary driver. We should have the biggest say,” said Coun. Michael Oshry.

If all 13 municipalities in the region join, Edmonton would pay $210,000 of the $500,000 start-up funds. That compares to $45,000 from Strathcona County, the second largest municipal contributor.

The regional board hopes to double that first-year budget to $1 million with provincial and federal funding. The annual budget would grow to $5 million with at least $840,000 from Edmonton in the third year.

Oshry worried the new board would influence how industrial zoning works, where new industry is located and who gets the tax revenue.

But Cameron said the board would be focused on attracting new business to the region — looking at branding, strategy and marketing.

Iveson said because the board is voluntary, there’s an incentive to collaborate and ensure all players feel the process is fair. If not, “people will take their marbles and go back home. Edmonton has the largest marble,” said Iveson.

The Capital Region Board has been working on this new economic entity since 2014. The need for something like this was stressed again last year, when nine municipalities examined what it would look like if they took this on alone.

Since then, the province decided to shrink membership in the regional board to just 13 municipalities from 24, and only one effort to create a regional economic development entity is going forward.

Deputy city manager Gary Klassen, who will be leading Edmonton’s effort on this file, said there would still be a role for the Edmonton Economic Development Corp. even if that shifts over time.