Calgary Minute: Issue 316

Calgary Minute - Your weekly one-minute summary of Calgary politics

📅 This Week In Calgary: 📅

• Council voted 7-7 on a motion to reaffirm a planned 3.6% property tax increase for 2026, resulting in its defeat. Despite the tie, the vote was seen by some Councillors as a routine step with no real change, since the original budget approved in 2022 already set that tax target. Supporters argued that confirming the increase early would give residents financial predictability, while opponents felt it was premature and didn’t reflect new motions, like one calling for an added infrastructure reinvestment levy. Mayor Jyoti Gondek emphasized that the original tax plan remains in place despite the vote and noted that actual inflation and population growth have exceeded earlier estimates. City Administration still plans to include the 3.6% increase in the upcoming budget, which would generate about $88 million for infrastructure and rising service costs. Council also approved over $96 million from reserves to cover cost escalations and maintenance on key city projects. A budget preview is expected in September, with formal discussions in November under a new Council.
  
  
• Council rejected a motion by Ward 5 Councillor Raj Dhaliwal to study capping the number of Uber and Lyft drivers in the city. Currently, Calgary has about 16,500 ride-share drivers, far exceeding the roughly 1,880 taxi drivers, and Dhaliwal argued this oversaturation hurts drivers’ incomes. However, most Councillors felt it wasn’t the City’s role to limit ride-share licences. Critics also pointed out that many ride-share drivers work part-time, unlike taxi drivers who generally work full-time, making a cap impractical. Additionally, concerns were raised about restricting people’s ability to supplement their income through ride-sharing. An amendment to also explore lifting the taxi plate cap failed. On one hand, victory for the free market - but why the continued cap on cabs?
  
  
• On the one-year anniversary of the Bearspaw South Feeder Main rupture, Calgary announced multiple water infrastructure projects aimed at improving system reliability. Construction on a new 22-kilometre feeder main in north Calgary will start this summer, alongside design work for a 25-kilometre feeder main in the south. The City is also planning to build a “micro tunnel” near the existing Bearspaw main to enhance redundancy and resilience in phases over the coming years. Investigations attributed the 2024 pipe failure to aging infrastructure and environmental factors, while engineering reviews confirmed the City’s practices were sound. Since the rupture, Calgary has installed fibre optic monitoring technology for continuous, real-time oversight, detecting only minimal new damage. A recent City report highlighted improvements in emergency response, coordination, communication, and infrastructure planning to better prepare for future challenges. Mayor Jyoti Gondek emphasized the importance of investing in water infrastructure to support public safety, economic growth, and community well-being.
  
  
• Calgary’s industrial growth has stalled over the past decade as many businesses have chosen to locate outside City limits, especially in nearby Rocky View County, where land and taxes are cheaper. To address this, Calgary’s Infrastructure and Planning Committee unanimously endorsed an updated industrial action plan aimed at making the city more competitive by converting land for industrial use, updating zoning, and leveraging Calgary’s strengths - like its labour pool and services. The plan seeks to stimulate industrial development, create jobs, and grow the City’s tax base, though success will take time; a key regional project, the Prairie Economic Gateway, is expected to bring growth but won’t yield returns for 10-12 years. Local business groups support the plan, emphasizing that Calgary must improve its cost structures and approval processes to attract investment. Some councillors highlighted the urgency of acting now to retain industrial jobs and tax revenue within the City rather than losing them to neighbouring counties. The Committee also approved an amendment to consider industrial areas as strategic employment hubs in future planning, showing a strong City commitment to revitalizing industrial development.
  
  
• Speaking of growth, Council is considering a proposal to fast-track approval of new community growth applications that require only operating costs, not capital investments from the City. Currently, new communities are approved only once a year during the fall budget cycle, but the change would allow approvals year-round for developments where infrastructure costs are covered by developers or existing services. The proposal includes immediate consideration of six “shovel-ready” growth applications, potentially removing red tape and allowing developers to begin construction sooner. A $140,000 budget increase for Calgary Transit is also proposed to support transportation in these new areas. Some concerns remain that approving funding outside the budget cycle could reduce flexibility for other City priorities and encourage more off-cycle funding requests. Local development groups support the change, noting it could prevent delays that currently risk losing a full construction season.
  
  
• The Calgary Airport Authority is preparing for a busy summer season, expecting over 5.8 million travellers to pass through Calgary International Airport between June and August. This surge is partly due to major events like the G7 Summit, the Rotary International Convention, and the Calgary Stampede, with about 67,000 passengers daily. To manage the flow, the airport has coordinated with partners such as Canada Border Services and the Canadian Air Transport Security Authority, aiming for smooth travel experiences. Significant upgrades are underway, including seven new screening lanes at the domestic terminal, boosting capacity by 40%. Heightened security will be in place for the G7 summit, including road closures and increased police presence. Travelers are advised to arrive early, have travel documents ready, and familiarize themselves with border and security rules to speed up processing.
  
  
• And, in related travel and tourism news, a new full-service convention hotel with about 320 rooms is planned for Calgary’s Stampede Park, marking the first such hotel in downtown Calgary in 25 years. The Calgary Municipal Land Corporation (CMLC) and Calgary Stampede partnered with local developer Truman for the $330 million project, which will be built on an 85,000-square-foot site near the expanded BMO Centre. The hotel will feature 15,000 square feet of ballroom and meeting space, a rooftop lounge, restaurants, and wellness amenities like an indoor pool and fitness club. Truman will develop, own, and operate the hotel in collaboration with an international hotel brand, to be announced soon. Construction is expected to start in late 2025, with the hotel opening planned for 2028.

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