Business leaders again question Green Line plans
Group wants council to ‘de-risk’ project as vote on LRT extension draws closer
A group of Calgary business leaders say city council needs to “de-risk” the $4.6-billion Green Line project by making significant changes to routing and construction given the financial shock brought on by COVID -19.
In a letter addressed to city management, the group said crashing oil prices, a global recession and the pandemic will have lasting effects on thousands of Calgarians who won't be able to shoulder potential budget shortfalls with raised taxes.
“Calgary is struggling right now and we have to be very careful, very cautious. We just simply can't run the risk of going over budget on a project like this — the biggest, most complicated, expensive thing Calgary has ever done,” said Jim Gray, veteran oilman and a member of the group.
The group is asking council to take immediate steps to remove risks from the Green Line project by updating their “underlying assumptions and taking a 'measure twice, cut once' approach.”
Their alternative plan includes chopping the 7th Avenue S. to 16th Avenue N. portion of the Green Line, scrapping underground segments, using platform-loaded cars consistent with the existing fleet and breaking down the project's first stage into upwards of five construction sites to produce more local jobs. The group estimated these changes would save approximately $3.2 billion.
“We need jobs for local Calgarians and we need those jobs now,” said Gray. “We're not trying to pull a power play here. We want more local people, and if we build this thing on the surface of 7th Avenue
S. we'll put more local contractors to work.”
He said building on the surface, as opposed to underground, and splitting the project into three to five construction sites can attract Calgary talent, but anything larger, such as bridges over the Bow River and 'cut and cover' underground segments, will give business to larger firms.
Coun. Shane Keating, who chairs council's Green Line committee, said they have heard from the group several times and addressed many of their concerns.
“Armchair quarterbacking often gives rational and reasonable ideas. The difficulty is when you do an in-depth study, those rational, reasonable ideas or concepts don't come to fruition in reality because they pose other problems rather than having a holistic approach to the project,” said Keating.
He said the group's comments will be addressed at the Green Line committee meeting next month and council will make decisions based on that information to move forward. “Throwing out a number of suggestions that probably haven't had the scrutiny as well as other ones have, and thinking that's the way to go, just doesn't make sense,” said Keating.
The Ward 12 councillor said the city has been prudent in addressing potential risks in the Green Line project and made changes when needed, such as swapping the previously proposed deep tunnel under the Bow River to above ground. He also referenced the technical risk committee made up of experts from across Canada.
Keating said the project will attract both local and outside talent, and the south section alone will create about 12,000 indirect jobs and 8,000 direct jobs. He said it's a vital project to help get the province's struggling economy back on track, even if it takes longer than anticipated with the added complication of COVID-19.
“The key is still an LRT. The key is still to get from 16th to Shepard,” said Keating, adding he would like it to extend even farther south to Mckenzie Towne.
“We have to look at a holistic approach.”
On May 12, the Green Line team will identify the recommended Stage 1 alignment and provide updates on public engagement before the Green Line committee meeting on June 1 where, upon approval, it will move to city council for final approval.
Council is scheduled to decide the project's fate June 15.