City councillors are deciding whether to extend a special tax program for downtown Edmonton.
Developers and advocates made their case to city council on Wednesday for the Downtown Community Revitalization Levy, or CRL. The levy aims to increase action and stimulate economic growth downtown through revitalization projects, according to the city.
For 20 years, starting 2015, all property taxes generated in the CRL area must be reinvested back to it.
CRL projects have included the Rogers Arena projects, which attracted new developments and raised property values in the area. The city has been using those extra dollars to build “catalyst projects” to further increase property values and the taxes they generate.
Other projects include new Warehouse Park, Alex Decoteau Park, stormwater upgrades, the 103A Avenue pedway and streetscape improvement.
These improvements have helped generate nearly $5 billion worth of investment and development downtown, including office and residential towers, according to the city.
“That is a development that would not have happened had we not built that arena and made the other investments under the CRL,” Downtown Business Association executive director Puneeta McBryan.
The Downtown Business Association says it would really like to see investment to replace infrastructure on Jasper Avenue.
“The flower planters are crumbling and the street lights are rusted out,” McBryan said.
If city council agrees to extend the CRL end date from 2034 to 2044, city staff estimate it could generate an extra $7 to $9 million. The city could then use that money to build more catalyst projects, including an event park and land servicing for Ice District housing next to Rogers Place.
“If we can build another 2,500 housing units at the core of the city, right in downtown, that’s a huge success,” Mayor Amarjeet Sohi said.
“If we can build more cultural amenities in the downtown that will bring people downtown, that is a huge success, and that’s where we need to invest.”
The province has pledged $52 million for an indoor/outdoor event park beside Rogers Place. Councillors worry that commitment would evaporate if they try to spend the money elsewhere.
“It’s uncomfortable, but it’s the only way that we get this investment. After all of the cuts that we’ve endured, it puts council in a very difficult position of saying, ‘No,’” Ward Dene councillor Aaron Paquette.
City council will decide later this month whether to pursue a CRA extension - the process requires a public hearing to proceed. The province has the final approval.
