Jyoti Gondek

Courtesy CBC

Most of the people who have held the office of mayor of Calgary probably hoped to leave a legacy that people recognize as a positive contribution to the city.

Some did. Some didn’t. A couple of ‘dids’ come to mind. 

As mayor from 1980 to 1989, Ralph Klein’s legacy is as being part of the team that brought the 1988 Winter Olympics to Calgary, which resulted in the Saddledome being built, which brought the Calgary Flames to the city.

Dave Bronconnier, mayor from 2001 to 2010, also left a legacy near the Saddledome.

East Village: It’s the area directly east of city hall, stretching to Fort Calgary, with the Bow River on the north and 9 Ave. southeast on the south side.

When ‘Bronco’ took over the mayor’s chair, East Village was the most dangerous area of the city. Totally run down, it was a centre of illegal drug activity and the ‘office’ for sex workers. In earlier years, it served as the Calgary dump. It was not an area you wanted to be in, especially after dark.

Bronco, vowing to clean it up, approached the development community to gauge any interest in participating. 

There was no interest. Developers told him the cost to remediate the area was too high, but if the city undertook the task, there would be interest in building condo-apartment buildings. 

So, the mayor introduced the Tax Incremental Funding (TIF) program, with the blessing of the Alberta government. The way a TIF works is, an area for redevelopment is identified and for 20 years, all taxes collected in that area are used to pay infrastructure costs incurred by the city to get the job done. 

No tax money comes out of the city’s general revenues. Only money from taxes collected in the designated area. 

It obviously worked. The TIF helped pay for, among other things, the new central library, and East Village is now an urban oasis of apartments and retailers.

The TIF worked so well, city council decided to expand the area it financed, calling it the Rivers District, which runs from the banks of the Bow River south to 25 Ave. S.W., with Macleod Tr. as its western border. Eventually, the Bow Building was added to the Rivers District because of the high taxes it would pay, which would contribute greatly to the TIF, now renamed the Community Revitalization Levy (CRL).

Here, from the City’s website, its (abbreviated) definition of the CRL. 

“(The) Community Revitalization Levy substantially funds the delivery of the Rivers District Revitalization Plan. The levy provides a means to segregate increased property tax revenues in the Rivers District, which result from redevelopment into a fund that will be used to pay for the new infrastructure required. The end result is improvements in the Rivers District are self-funded without any additional tax burden on the balance of the city, and at the end of the CRL period, the amounts that were charged under the CRL would become general property tax revenues and flow into the general revenues of the city and the province.”

There’s a lot of work going on in the East Victoria Park area within the Rivers District, including the RoundUp Centre upgrade, the demolition of the Corral and a lot more to come. Plans include homes for 8,000 new residents in the community, with approximately four million square feet of absorbable mixed-use development, a Stampede Trail retail street and the LRT Green Line extension. All of this development might even give some justification to converting the empty downtown office buildings into residences. 

Up until about a month ago, the plans included a new Event Centre, to be built on a couple of mostly empty parking lots north of Stampede Park. The cost of the centre would have been shared by the Calgary Flames organization and the City of Calgary. 

That deal is dead.

How vital was/is the Event Centre to the success of the Rivers District? 

If the district was the Tampa Bay Buccaneers, the Event Centre would be Tom Brady.

The Event Centre would be home to more than the Calgary Flames. It would put Calgary in the big leagues in attracting major concerts and other events (hence the name). Under the dead deal with the Flames, the City of Calgary would have received a percentage of ticket sales to every event. There are other opportunities for revenue generation for the city that are now in jeopardy.

However, without the Flames as a partner in some fashion, there isn’t likely to be an event centre.

The Flames ownership group is first and foremost a collection of very successful and astute business people. They are not the billionaire robber barons some Calgarians claim them to be. 

Bringing NHL hockey to Calgary was a great contribution, but their greatest contribution is the millions and millions of dollars they have donated to charities, to build major medical facilities and more. There can be no doubt more than a few Calgarians who are against using public money to help build the Event Centre have benefited from the owners’ largess. 

Without a new, reasonable deal would the ownership group move the Flames out of the city? 

They absolutely would.

That would be Mayor Jyoti Gondek’s legacy.

Myke Thomas is a Western Standard contributor. He started in radio as a child voice actor, also working in television and as the real estate columnist, reporter and editor at the Calgary Sun for 22 years.

Columnist

Myke Thomas is a Columnist for the Western Standard and Alberta Report based in Calgary, Alberta. He has worked in television and as a columnist, reporter and editor at the Calgary Sun for 22 years.

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