A CRL is a unique funding model designed to help pay for major urban projects through a commitment from both the provincial and municipal level of government. A CRL’s purpose is to spark re-development of certain city lands. A CalgaryNEXT CRL would be based on a $240 million commitment that would help to initiate the development of the CalgaryNEXT project and redevelopment of Calgary’s West Village over the next two decades. The borrowings would be administered through the City of Calgary with the CRL revenue paying back the borrowings as they are collected. The provincial & municipal governments would see the benefit after the CRL period has expired through property taxes from the increased tax base. It would be based on the property taxes levied against new development and increasing property values in the West Village. There would be no tax impacts to Calgarians living and working outside of the West Village.
This model is presently being used to enable the development of Calgary’s East Village through the Calgary Municipal Land Corporation. The East Village CRL is enabling the construction of condominium, hotels, retail and public spaces such as the east river walk area. With the success of the East Village development, will come community energy and vibrance. It will also provide a place to live, work and play. The East Village project gets the tax in the ring fenced area for a finite period of time. In the absence of development, no tax is generated, therefore allowing the area to use this tax to “self fund” the new development incentivizes development that would otherwise not take place.
A CRL enables the growth of a community like the West Village. With development of CalgaryNEXT, commercial, residential, retail and public places bring people and community together. A CRL will help Calgary realize the development of the West Village that will add significant benefits for Calgarians over the next decades. A CalgaryNEXT CRL will enable the revitalization of our urban core.
City of Edmonton: https://youtu.be/PZw7oVwZAdI
A small portion of the ticket costs to CalgaryNEXT sports and entertainment events will help pay for the project. The ticket tax/user fee simply works as a user pay model that is paid over time by those who enjoy the benefits of the facility.
The CSEC is made up of the owners and partners of the Calgary Flames, Stampeders, Hitmen and Roughnecks. They will contribute $200 million to the development of CalgaryNEXT. When combined with the ticket tax the investment from CSEC will contribute to over 50% of the estimated project cost.
A fieldhouse is currently the City of Calgary’s single largest unfunded priority and is currently budgeted at $200 million. CSEC is working with the City and the Calgary Fieldhouse Society to incorporate the fieldhouse as an integrated part of CalgaryNEXT. The benefits include a world-class fieldhouse which is easily accessed from all corners of Calgary, with significant cost savings by positioning it within CalgaryNEXT.
With the approximate size of 127,788 sm for CalgaryNEXT, we estimated the total cost of the development assuming construction would begin in 2017. In doing so, we have accessed a large database of the actual construction costs of other recently constructed Event Centres and Stadiums.
In addition to using historical construction costs, we consulted local construction professionals with intimate knowledge of the market in Calgary to help developing the construction budget for all components of the CalgaryNEXT. The estimated costs for professional design services, project management and administration, pre-opening costs and furniture, fixtures and equipment are also included in the estimates.