Massive tower on parkland comes with risks, councillors told

The 80-storey tower dangles like a carrot before council.

But there’s significant risk, says a public report released Thursday on the possible land sale. There’s little in the agreement that would protect the city if the developer buys the river valley parkland from the city and builds something at a lesser scale, like a 40-storey tower instead.

Likewise, if the developer starts to build, then can’t finish, the city’s hands would be tied, says the city report. “The city would not be able to buy the city land back at this point.”

The first scenario is “likely” to happen, says the city’s land sales group, assigning it a 4 out of 5 for likelihood of occurrence. The second scenario is a 3 out of 5, or “possible.”

Alldritt Group has proposed a slim 80-storey tower for the edge of the river bank south of Jasper Avenue and west of 96 Street. It was first pitched for land Alldritt owns on 96 Street but, in consultation with city planners, the company agreed to try moving it west. That puts it on city land, a steep slope above old coal mines, but blocking less of the view of the new Armature Park and the view of the valley from the new Hyatt Place hotel.

A land sale agreement goes to executive committee Tuesday with a public hearing to follow.

Coun. Dave Loken said he’ll have questions about the deal, but he’s not worried Alldritt won’t follow through with the building. “They’re spending a lot of money (on studies and planning),” he said. “That tells me they’re serious about building.

“That part of the downtown really needs a shot in the arm and this is a project that will do it,” said Loken. “Alldritt is a long-standing Edmonton company and they’re very respected ... I don’t see a lot of downsides to this one. Why not be big and bold?”

No prices of land have been released publicly for fear it could prejudice other sales by the city in the area.

Chris Hodgson, a city director in land sales, said the agreement would be structured so the base price is set at the market value today, as determined by the city’s internal assessor. A second payment would be made when the development permit is issued, reflecting the change in value created if the city rezones the property to allow the 80-storey tower.

There’s also a performance fee to ensure the building is completed and done to a certified environmental standard. But Hodgson said he couldn’t reveal any details about the size of that extra fee.

Alldritt would have 10 years to get the development permit or the city could buy back the land. The city is still negotiating for an option to purchase the attached Alldritt Lands as well if construction plans fall through.

Alldritt would agree to make a temporary public park on its land before construction starts, with the derelict pink and blue buildings demolished by January 2018. The city would pay for a public access easement once the tower is built.

The debate on the land sale and rezoning was postponed earlier because negotiations were ongoing. After it was postponed, several Riverdale residents said they worried it would impact their view and increase traffic by their neighbourhood.

Boyle Street resident Candas Jane Dorsey worried that, rather than acting as a catalyst, one large tower could soak up demand for condos in the area, leaving vacant parts of the neighbourhood untouched. Years of public input went into the area redevelopment plan for the neighbourhood. The plan would change to accommodate this project.