Calgary’s Urban Placemakers 2019 BUSINESS2019 PLAN UPDATE CONTENTS
03 Introduction
06 Milestones of 2018 10 The Status of our 20-year Plan 13 2019 Economic Outlook
18 Chapter One Inside the Rivers District
21 Our Business Strategy 22 East Village Projects 36 East Victoria Park Projects 44 Corporate Planning
48 Chapter Two Outside the Rivers District
49 Our Business Strategy 50 Investment Principles 51 Current Projects
54 Chapter Three Finance & Corporate Services
55 Managing the CRL 57 Corporate Services 60 Financial Strategy CMLC 2019 BUSINESS PLAN UPDATE • PAGE 3
INTRODUCTION
Note: This document constitutes our second and final Of course, all the collaboration in the world update to CMLC’s 2017–2019 Business Plan, which can’t make up for lack of talent. Fortunately, Calgary City Council approved on December 15, 2016. Its CMLC has talent in spades—from the intent is to provide clarity on the work we will undertake innovators and creative visionaries who can during the 12 months of 2019. As you read this update for 2019, please refer as necessary to the full three-year look at bus barns and railway tracks and see Business Plan. In many instances, we’ve provided page a Cultural and Entertainment District to the numbers for ease of reference. placemakers and project managers who ensure that things—big things!—get done to the folks behind the scenes who manage Over the past 12 years, CMLC has done everything from our budgets and timelines more than rebuild East Village from the to our image and reputation. ground up and breathe new life into downtown Calgary’s east end through Our handover of keys for the new Central public infrastructure improvements, Library on September 14, 2018, highlights strategic placemaking, enthusiastic CMLC’s depth, versatility and discipline. programming and community engagement. Arguably one of the most complex and ambitious engineering and construction We’ve proven our depth, our commitment projects our city has ever seen, the Central and our versatility. Library opened on time and $10 million One of the core strengths of CMLC’s team, under budget after five full years and executive and Board of Directors is our approximately 1.7 million construction ability to work in collaborative ways that hours (during a prolonged slump in balance the interests of various sector Calgary’s economy, we might add). partners—government, private and not- And the result—an urban landmark and for-profit—for their benefit and that of the world-class institution certain to further greater community. solidify Calgary’s presence on the world stage—is simply incredible. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 4
It started with a vision, and then it took forward to ‘going vertical’ again—starting a dynamic and passionate team to make with Platform, the innovation centre we’re that vision real. That’s what we do: CMLC developing for Zinc Ventures in conjunction brings big—and vital—city- and community- with the 9th Avenue SE parkade whose building ideas to life. Dramatically. For the construction we’re managing on Calgary benefit of all Calgarians. Parking Authority’s behalf. Beyond the Rivers District boundary, we’ve made Together, we provide our shareholder with significant progress in preparing the skills, perspectives and approaches that David D. Oughton school site for simply can’t be fabricated or recreated. It’s redevelopment; and in the coming year, the very thing that makes our organization we’ll work to secure a developer partner uniquely capable, efficient, influential and, capable of delivering on a vision crafted as our work in East Village emphatically to stimulate revitalization in the area. testifies, successful. As Calgary forges ever onward in its urban In 2019, we plan to leverage our skills and renewal efforts, there will be many spaces extend our city-building success in the where the interests of the government, broader Rivers District and beyond. With private and not-for-profit sectors overlap. a development agreement now in place with Calgary Stampede and the completed At these points of convergence, CMLC Rivers District Master Plan in hand, we’ll is well positioned to apply our unique begin planning for the Stampede Trail combination of talents to deliver value retail corridor enabled by our extension for our shareholder, the City of Calgary, of 17th Avenue SE across Macleod Trail— and for the citizens of the city we’re so a huge step forward in advancing the proud to call home. Rivers District Master Plan. Having proven our capacity in vertical development with the new Central Library, we look eagerly
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 6
MILESTONES OF 2018
New Central Library welcomes Calgarians Notably, just one week after construction began, the price of oil toppled from $125 to One of Calgary’s biggest stories of 2018 sub-$40 a barrel—an economic event whose was the eagerly anticipated opening of aftershocks have yet to subside. Even amid the city’s new Central Library. the dynamics that have challenged Calgary’s On November 1, nearly a month ahead economy for the past few years, CMLC of the contractual delivery date, CMLC and our project team kept this complex joined the City, Calgary Public Library and $245-million project moving forward, on the citizens of Calgary in celebrating the schedule and $10 million under budget. opening of the landmark library that now Beyond fulfilling (dramatically!) the city’s adorns East Village. The library welcomed need for a new Central Library, the project 51,000 visitors during the four days allowed us to bridge the connectivity barrier following its grand opening—a powerful between East Village and the downtown affirmation of Calgarians’ eagerness to core. With the George C. King Bridge, Elbow experience the new Central Library’s River Traverse and 4th Street SE Underpass, awe-inspiring (and idea-inspiring) environs. CMLC forged vital connections to the north, Over five years of construction, CMLC led east and south. Just one obstacle remained. a huge project team through one of the So, within their mandate to design a world- most creative and challenging projects the class institution poised to fulfil its promise ‘to city has ever seen—not only in design but in inspire all,’ our prime consultants Snøhetta engineering, construction and placemaking, and DIALOG designed the building to too. Providing Calgary Public Library with establish a desperately needed pedestrian 66 percent more space than its circa 1960s link between the downtown core and the predecessor, the new Central Library took library, East Village and the rest of Calgary’s shape during approximately 1.7 million future Cultural and Entertainment District. construction hours. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 7
The building that Architectural Digest Calgary’s Gibbs Gage Architects—plus a named “one of the world’s 12 most eagerly group of community stakeholders; and awaited buildings of 2018” is expected to by year’s end we had a draft master plan welcome a staggering 2 million visitors a ready for public and stakeholder input. year beginning in 2019. During the first nine months of 2018, our team interacted with nearly 7,000 A master-plan vision for east Victoria Park Calgarians at 36 engagement events and In late 2016, we released our 2017–2019 collected nearly 4,000 online surveys. Business Plan, in which we announced For both efficiency and economy, CMLC our intention to “seek and embark on new coordinated its engagement initiatives opportunities within the Rivers District to with the City of Calgary, which concurrently invest our expertise and the remaining CRL amended the Beltline Area Redevelopment revenues into placemaking and community- Plan (ARP) to support the Rivers District building initiatives” (see page 20). And since Master Plan. intention means nothing without action, we After reviewing and synthesizing the backed up our pledge with a promise to data—some 120,000 data points—CMLC invest the final $150 million from our first 20 and the City proceeded with amendments years of CRL generation into placemaking and to the Rivers District Master Plan and the infrastructure initiatives in east Victoria Park. Beltline ARP. We got immediately and feverishly busy, We are poised and eager to do for east beginning with the creation of a tool that Victoria Park what we’ve done (and has proven vital and indispensable in our continue to do) for East Village. Once our strategic redevelopment of East Village: a shareholder has endorsed our proposed master-plan vision to guide the redevelopment final draft of theRivers District Master and transformation of east Victoria Park into Plan, nothing can hold us back! Calgary’s Cultural and Entertainment District. (For additional details, see page 40) By February 2017, we’d issued an RFP, assessed the submissions and secured a design team—Civitas (Denver) with
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 9
New East Villagers move into Verve and Ink Representing a private investment of approximately $35 million by Groupe We began welcoming more residents to Germain Hospitalité and local developer the neighbourhood in fall 2018 as two new Homes by Avi, the 11-storey hotel offers condominium towers opened their doors 155 pet-friendly (and budget-friendly) to excited new East Villagers. rooms and 5,000 SF of meeting space in After topping off the building in January addition to its food and beverage venues. 2018, FRAM + Slokker stayed on target to have their 288-unit tower Verve ‘resident EV Dog Park provides welcome ready’ by fall. (Verve retailers will open in relief for EV dogs Q1 and Q2 2019, forming East Village’s first retail activation along The Riff.) Meanwhile, To meet the needs of pet owners (or, Battistella Developments’ Ink—a 14-storey more accurately, pets) now residing in tower comprising 119 ‘micro-suites’, which East Village, CMLC constructed a small construction crews topped off in February— dog park—a spot for Spot to go and ‘go’. was also ready for fall move-ins. Both Located next to the East Village anticipate reaching full occupancy in community garden and playground, early 2019. EV Dog Park opened on October 20, 2018, with an afternoon fête for Fido ALT Hotel elevates EV’s ‘destination’ status and friends—BARK biscuits for the pooches, hot chocolate and treats for Exactly 24 months after its November the humans, and free dog park etiquette 2016 ground-breaking at the corner of workshops by Cultured Canines. Confluence Way and 6th Avenue SE, the ALT Hotel Calgary East Village ushered in To deliver this new amenity, we worked its first eager guests on November 15, 2018. with Stantec—the same landscape architect that delivered the adjacent ALT Hotel and CMLC will stage an official Crossroads children’s park. and newsworthy grand opening when construction of the hotel’s restaurant and café wraps up in Q1 2019.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 10
STATUS OF OUR 20-YEAR PLAN
Officially known as the Rivers District, There’s a landmark library, a national downtown Calgary’s east side has always music centre and an island sanctuary for been a confluence of two rivers. Twelve Calgarians to discover all over again. There years into a 20-year revitalization plan, are bridges, underpasses and other linkages it’s evolved into a meeting place for in all directions, connecting a once-isolated innovation, programming and investment. and all-but-forgotten district of downtown This historic piece of Calgary—a place Calgary to its neighbours. Where vacant rooted in beginnings—is undergoing an lots once peppered the landscape, condo astonishing renewal. towers (home to 3,500 new East Villagers who’ve been moving in steadily since 2009) Now a dozen years after we hunkered and two fully operational hotels now stand. down and got to work on our mandate to Heritage buildings that 12 years ago were implement the Rivers District Community squalid and hazardous now draw residents Revitalization Plan, downtown’s east and untold visitors to an intimate trio of end certainly isn’t what it used to be. riverside eateries and provide office space Where for decades there was little for the lucky few whose workplaces happen but dilapidation, criminal activity and to be in Calgary’s oldest, newest, warmest, hundreds of acres of land that was coolest neighbourhood. There’s a riverside practically worthless, there is now a promenade and plaza, public art, a major thriving, energetic and still-growing retail centre and so much more. neighbourhood. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 11
There’s also energy—incredible round- With so many of its pieces now in place, the-clock energy, largely because the our master-plan vision for East Village— neighbourhood has been programmed like nothing more than wishful thinking 12 years crazy. It started with the Calgary Marathon; ago—is mid-stream in its evolution into a then came yoga, food trucks, craft markets, ‘complete community.’ Sure, there’ll be a music festivals and opera. Events struck lot of construction (and all its attendant a chord with Calgarians, as did unique inconveniences) for a few years to come, experiences like EV Junction—a pop-up but we feel that’s an insignificant price to outdoor ‘mall’ that will mark its third year pay for the resurrection, redevelopment, in East Village when the shipping-container revitalization and repopulation of Calgary’s shops return in 2019. oldest neighbourhood…never mind the fact that CMLC’s commitment of $396 million CMLC’s programming efforts now draw to East Village infrastructure improvements more than 80,000 visitors a year to has attracted nearly $3 billion of planned East Village—urban explorers who flock investment here in Calgary. to one-of-a-kind experiences in one-of-a- kind settings. It’s been an extraordinarily This is what can happen to a neighbourhood successful exercise in raising a village when collaboration, creativity, determination, and bringing economic momentum to ignoring the naysayers and a whole lot of downtown Calgary’s entire east end. hard work prevail.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 13
2019 ECONOMIC OUTLOOK
In October 2018, Calgary Economic Employment Development with partner ATB Financial released its economic outlook for the Even though the pace of growth has year ahead. It appears the recession been frustrating for thousands of is officially over, with Alberta’s GDP Albertans still looking for work, the growth on a solid path. province’s job market is growing once again. With 16,200 jobs added in August, year-over-year employment growth Several positive economic indicators— accelerated to 2.3 percent. Most new jobs, employment, retail trade and however, are in lower-paying positions manufacturing sales—are higher as availability of energy-sector jobs than last year, with notable growth continues to weaken. ATB forecasts in agriculture and agrifoods, tourism, the provincial unemployment rate will transportation and logistics, and the average 6.4 percent for 2018 and fall tech sector. slightly in 2019 and subsequent years. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 14
Investment CREB chief economist Ann-Marie Lurie says concerns over unemployment are Among all provinces, Alberta is expected the greatest obstacle to sales growth. to see the fastest growth in private “Calgary’s economy continues to struggle sector investment in 2019, driven largely with unemployment, which rose again last by growth in conventional oil and month to over 8 percent. Concerns in the gas investment. ATB forecasts overall employment market, higher lending rates business investment will be 3.2 percent and shaken confidence are weighing on higher than in 2018. housing demand.”
Housing Relatively high vacancy rates in the multi- family residential market are also expected Calgary’s housing sales activity totalled to quell demand. 1,272 units in September 2018—13 percent lower than a year earlier and well below Both Calgary and Edmonton show a rising long-term averages. There was a pullback number of new but unsold homes as in sales across all product types, most stricter lending rules and rising borrowing notably in the detached market. rates have deflated both home prices and sales activity. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 15
2019 ECONOMIC OUTLOOK CONTINUED
Retail Commercial The retail sector is a bright spot in the The combination of sluggish population provincial economy, with Albertans growth, slow employment growth and outspending their fellow Canadians in higher interest rates is expected to depress per capita retail purchases. Though unable future commercial building permit values. to keep pace with the 7.8 percent increase in 2017, retail sales are expected to grow In addition, Calgary continues to grapple by 3.4 percent in 2018. In addition, 2018 with significant vacancy in downtown shipments of manufactured goods from office space, which, according to Calgary Alberta were highest in nearly four years. Economic Development, was at 27.3 percent in Q3 2018. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 16
Alberta Highlights • Uncertainty about U.S. trade policies is impacting growth and investment in Canada and Alberta • Retail, wholesale and manufacturing sales are up, highlighting the momentum building in the provincial economy • Ongoing strength in exports, a modest improvement in investment and continued population and earnings growth are expected to support a GDP growth of 2.6 percent • The province’s key challenges going into 2019 include job creation, energy investment, pipeline approval and international trade
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 18
CHAPTER ONE
INSIDE THE RIVERS DISTRICT CMLC 2019 BUSINESS PLAN UPDATE • PAGE 19
When the City of Calgary created CMLC Inside the in 2007, our marching orders were to implement the Rivers District Community Rivers District Revitalization Plan—a public infrastructure program aimed at kick-starting urban renewal on downtown Calgary’s east end. Twelve years later, East Village has risen like a phoenix from its ashes. Rapidly evolving into a ‘complete community’, we believe it has safely crossed that tipping point where the investments, prospects, plans and progress we’ve secured make the realization of our vision a pretty safe bet. With enough momentum behind East Village to carry it forward without our team’s full and collective focus, we resolved in 2017 to extend our efforts into the farther reaches of the Rivers District—specifically east Victoria Park. Much like the East Village of 12 years ago, this inner-city neighbourhood is at a turning point. While sporadic development here and there has helped to some degree, it’s not enough. As with East Village, transforming east Victoria Park and steering the Rivers District toward its full potential will take a bold vision…along with the drive and the know-how to achieve it. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 20
That’s where CMLC comes in. Seeing residential offerings, and creating a major opportunity for a major vision, a district ‘heart’ that becomes the we’re advancing a 20-year redevelopment front door to Calgary’s Cultural and program for east Victoria Park centred Entertainment District. around the idea of a Cultural and Entertainment District in downtown As they form a vital part of the District, Calgary’s east end. a new event centre, relocation of the East Victoria Park Transit Centre To put the pursuit of that vision in motion, ‘bus barns’ and an expansion of BMO our 2017-2019 Business Plan allocated Centre figure prominently in the master a significant sum of CRL revenue— plan, which has carefully studied their $150 million—to strategic infrastructure integration into the District vision. improvement and placemaking projects in east Victoria Park. In parallel with creating the RDMP, we spent much of 2018 planning for As with East Village, the crucial first infrastructure improvement initiatives step was to articulate the community vital to its success: the 17th Avenue SE vision and the steps we must take to Extension, which will come online in 2019, achieve it in the Rivers District Master and the 5th Street SE Underpass (part of Plan (RDMP)—a two-year labour of love the Green Line Interface in Victoria Park), that we completed after nine months which we will coordinate with Green Line of rigorous public and stakeholder project schedules. engagement during 2018. The RDMP illustrates the community-building power of creating primary connections in and out of the district, improving pedestrian and bike connections, developing open spaces, improving urban form and CMLC 2019 BUSINESS PLAN UPDATE • PAGE 21
Our Business Strategy
Within the Rivers District
To deliver a public infrastructure and placemaking program to attract private investment, to stimulate CRL generation, and to create a sustainable tax base for the City of Calgary as our shareholder. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 22
East Village 9th Avenue SE Parkade As project manager, CMLC was & Innovation Centre tasked not simply with building the Projects structure but with finding ways to Since 2016, CMLC has been working make it a catalyst to activate and In 2019, our biggest project with Calgary Parking Authority and energize 9th Avenue SE. Beyond files within East Village will Zinc Ventures—the driver behind accommodating hundreds of include the following. Platform, Calgary’s new innovation vehicles—this is downtown Calgary, centre—to build a 508-stall open-air of course—the parkade will include parkade and 50,000+ SF of flexible bike parking, an outdoor sport court space at 3rd Street and 9th Avenue SE. at ground level and a café space. Its intent: to incubate innovations, move Platform’s space, fully integrated the city’s best minds and ideas forward, into the design of the parkade, will turn concepts into entrepreneurial provide multi-use space for learning, opportunities and scale local businesses innovation and community. into international success stories.
Artist’s Rendering CMLC 2019 BUSINESS PLAN UPDATE • PAGE 23
Working with our prime design 3rd Street SE Public Realm Cycle Tracks consultant—Kasian Architecture, with support from 5468796 Encompassing approximately five To build on the success of the City’s Architecture—we’re designing the city blocks from 9th Avenue SE to permanent cycle track infrastructure project around six guiding principles: the Bow River, the 3rd Street SE and improve connections for cyclists Streetscape Improvement Project is traveling to and from East Village, • Enhance the public realm dramatically reshaping a space once CMLC has made enhancing the • Support future conversion potential dominated by vehicles and LRT lines bicycle routes along 9th Avenue SE • Allow for future development into a pedestrian-oriented streetscape and 4th Street SE a key priority. of land parcels east and west that connects the new Central Library Conceptual design work is underway • Create an assembly space with Jack & Jean Leslie RiverWalkTM in consultation with City administration where creative people converge, and the Bow River. and leading consultants. collaborate and bring visions to life • Create various meeting and Through 2018, we focused on the In 2019, we’ll begin improvements to gathering spaces that foster sidewalks and crossings along the east–west connection between entrepreneurial spirit 3rd Street SE and on the final stages Macleod Trail S and the Elbow River • Design an adaptable space with of construction and landscaping pathway along 9th Avenue SE and an ‘industrial’ feel related to the new Central Library. establish a new north–south route Phase 1—the area along 3rd Street along 4th Street SE to connect cyclists After working through the final SE between 9th and 6th Avenues— to RiverWalk. design in Q1 2018, we submitted our wrapped up as expected in Q4 2018. development plans for permitting In our three-year plan for 2017–2019, and prepared to begin construction. In Q3 2019, we will complete the final we identified the 12th Avenue SE cycle With all required approvals in stages of the improvements along the tracks as our priority; however, we’ve place, the project broke ground west side of 3rd Street SE between shifted our initial focus to 4th Street and construction got underway in 6th and 5th Avenues SE, tying into and 9th Avenue and, for both ease December 2018. RioCan’s landscaping for 5th & THIRD. and economy, will tie the cycle tracks Once complete, this initiative will have along 12th Avenue into our streetscape We plan to continue with the dramatically improved the pedestrian work as the Rivers District Master Plan foundations, concrete and steel work experience along the streetscape that continues to unfold. starting spring 2019, with substantial connects the soon-to-be-built 9th completion anticipated by Q4 2020. Avenue parkade, the newly completed Central Library and East Village’s largest retail development, 5th & THIRD. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 24
Project Historical Site consists today of a • Deliver an innovative, experiential single-storey interpretive centre built learning forum with inclusive Management in 1976 and a two-storey barracks representation by southern constructed in 2000. Alberta’s many cultures. CMLC continues to apply our ever-expanding expertise in project In 2018, Fort Calgary enlisted EV Place • CHC management. More and more, CMLC to manage the design and groups like Calgary Stampede, execution of the interpretive centre On behalf of Calgary Housing Zinc Ventures and Calgary Housing to support such functions as exhibits, Corporation, CMLC is managing the Corporation are turning to CMLC educational programming, retail improvement program for the two to provide strategic thinking outlets, food and beverage services, podium levels of East Village Place and guidance on redevelopment and event rentals. As a result of the (750 5th Street SE). and placemaking programs. design work, the existing interpretive Understanding our value as centre will be demolished and The 23,000 SF of renovated developers and project managers, replaced with a new building to community space will be home to we will seek out more contract service the needs and functions mixed-use commercial space and a opportunities as a means of of Fort Calgary. non-profit organization that supports the community. The City is pursuing maximizing our bottom line. As Fort Calgary’s project manager, multiple tenant opportunities that, we’re helping the guardians of this once in place, will largely dictate the Fort Calgary • New vital historical landmark achieve planning and construction schedule. Interpretive Centre their renovation goals—namely, to elevate the museum’s profile, status Fort Calgary is East Village’s oldest 9th Avenue SE Parkade and marketability by expanding and neighbour. And it was right here, at & Innovation Centre revitalizing exhibits and curriculum the Fort’s doorstep, that Calgary content. The design of the new CMLC is acting as PM to build began to grow, starting with the building will: the parkade and 50,000 SF of neighbourhood of East Village. incubator and start-up office space • Honour the reconciliation mandate As meaningful as it should be to in the new 9th Avenue SE parkade. through meaningful incorporation all Calgarians, the land on which Technology leaders will own space of Indigenous history, culture, Fort Calgary stands—traditional upon completion and will operate story and experience Blackfoot territory—is especially the innovation centre per their meaningful for Treaty 7 Nations. A • Create a venue that remembers operational agreements. vital dimension of the downtown and celebrates Calgary’s origin east-end experience, the Fort Calgary story in ways worth sharing with local and global communities Artist’s Rendering CMLC 2019 BUSINESS PLAN UPDATE • PAGE 26
George C. King Bridge connection along one of the steel Ongoing members near the southwest East Village For three weeks beginning August 16, corner of the bridge—called for 2018, CMLC closed the George our immediate attention. Thorough Improvements C. King Bridge for a scheduled inspection of all other bearings and routine inspection that was fast- connections on the bridge arches tracked following a 3-1-1 call noting revealed no additional signs of a potential issue on the southwest stress or premature wear; the crack abutment steel arch. appears to be an anomaly affecting only one steel member. WSP, a multi-national engineering firm, and Graham Construction— In the span of just three weeks, we both with specialized expertise in concluded our investigation and municipal infrastructure—worked implemented a temporary solution with our project team to perform before reopening the bridge to the a comprehensive inspection that public on September 5. This involved revealed four matters requiring affixing C-shaped steel molds to attention. Three are primarily two of the steel members and then cosmetic and can be addressed joining the molds by steel bars. easily through maintenance; the fourth, however—a 10- to 15- In Q1 2019, we will work with our centimetre crack at a cross-strut engineer and consultant team to devise a permanent fix for the bridge, with repairs to take place in Q2/3. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 27
5th Street Square General Maintenance Garbage Bins
In 2019, we will remove the Bike Racks In spring 2019, CMLC will remove resin-bound gravel in 5th Street and replace all Bigbelly trash and Square, which failed to meet our We designed East Village to be recycling receptacles in East Village high construction standards. We cyclist-friendly. When we noticed and along RiverWalk. Beyond have reviewed a variety of products many cyclists locking their bikes to becoming woefully weatherworn, promising to prove more resilient trees, lamp posts, sign posts and the trash compactors have failed than the gravel while lending a more other community infrastructure, we many times and their broken locking naturalized feel to the urban park; quickly clued in that East Village had mechanisms are blemishes on our and in the coming year, we will more demand for safe bike storage otherwise beautiful streetscapes. move ahead with the repair work. than it had places for safe bike The new bins will make it easy storage. Seizing a great opportunity to dispose of trash and recycling to continue cultivating Calgary’s while facilitating collection by our cycling culture, CMLC committed maintenance crew (as the new bins to adding additional bike racks in have just one large compartment high-traffic areas in spring 2019. to empty). The design of the bins We’ve prioritized areas based on aligns well with other East Village the number of existing bike racks infrastructure (like benches and will focus first on the primary and lamp posts), upholding the locations, considering secondary neighbourhood’s thoughtfully locations as the neighbourhood crafted sense of place. continues to grow. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 28
Land Strategy Block Q Block K (‘EVE Block’) and Activations In 2018, CMLC and FRAM + Slokker reworked the details our master In 2017, CMLC launched a robust Purchase and Sale Agreement to direct marketing campaign to accommodate the developer’s exit identify a new development partner from the easterly portion of Block Q for Block K, or EVE Block—the (parcels 3 and 4) and allow a new last remaining full city block of developer partner to enter the development opportunity within program and fulfill the vision for the the East Village land program, balance of the block. FRAM + Slokker with approximately 800,000 SF will continue to deliver parcels 1 and of development potential. We 2; and to ensure cooperative staging have since been working toward a and construction among mixed Purchase and Sale Agreement with development partners for parcels 3 our desired developer partner and and 4, CMLC worked with FRAM to expect to solidify the contract and establish a coordinated site delivery announce our selection in Q1 2019. agreement.
In 2019, CMLC will progress through land sale opportunities to solicit interested developer partners to deliver the balance of Block Q. We intend to announce a new partner in 2019. Block Q Parcel 4
Block Q Parcel 3
Block K CMLC 2019 BUSINESS PLAN UPDATE • PAGE 30
E2 In 2019, we will explore opportunities While the building’s zoning allows for for the block with developer many potential uses, CMLC envisions Located immediately west of partners to ensure the product a main-floor restaurant or craft the St. Louis Hotel building on offering, architectural design and brewpub and, in the basement, a 8th Avenue SE, Block E2 (a.k.a. the retail programming take maximum modern speakeasy. Eagle lot) has remained vacant and advantage of the unique location seen very little development activity while responding to market demand. Aimed at ‘testing the waters’ in due to the volume and complexity an economic climate still far from of nearby construction projects— St. Louis Hotel resilient, our initial RFP confirmed most notably the new Central our suspicion: given the persistence Library but also the Hilton hotel In Q4 2017, CMLC issued a Request of Calgary’s economic doldrums and Knightsbridge Homes’ N3. for Proposals from prospective as well as the constant clamour of tenants for the main and lower floors major construction in the immediate Now that all three of these projects of the St. Louis Hotel building at vicinity (most notably on the new are complete, E2 is a prime property 430 8th Avenue SE. To bring the Central Library), we simply wouldn’t ripe for redevelopment, and we’re building’s structure and systems up attract the calibre of response eager to identify a development to modern standards, CMLC invested befitting the building’s prominent partner who appreciates the $9.2 million into restoring the historic location and historical significance. unique character and value of a site 1914 hotel. between the new landmark library In 2019, we plan to rekindle the building and two fully restored In our view, the St. Louis is well process of procuring tenants and heritage buildings—the St. Louis and suited to entrepreneurial businesses will work with a broker to find the the Hillier Block. with the artisan spirit of the Maker right partners. In the meantime, we’ll Movement—an ideal fit with the continue to animate the space and ‘village retail’ dimension of CMLC’s demonstrate the building’s potential overall retail strategy for East Village. through community programming. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 31
Hillier Block CMLC designed this storytelling Castell Building (former initiative to familiarize Calgarians Central Library building) Originally home to a billiards hall with the NCL construction program, and barbershop on the ground floor Calgary Public Library’s long-term CMLC has committed to helping the with residential suites above, Hillier strategy and the diverse, exciting City address and mitigate concerns Block received its designation as a programs the new Central Library about the vacant building. Equipped Municipal Historic Resource from will deliver. with a licence of occupation for Calgary City Council in February the building, we are preparing the 2008. Despite its extremely poor The Foundation’s January 1 move-out main floor for use by University of condition when the Hillier was makes way for Calgary Technologies Calgary’s Faculty of Environmental transferred to CMLC, this historic Inc.—new tenants who are part of Design as educational studio and building is now fully restored. the Platform story (see page 25). student project work space. The Currently located on U of C’s campus, faculty will take occupancy in From October 1, 2016 until Calgary Technologies will take over January 2019. December 31, 2018—two months the lease and use the space as a base after Calgary’s long-awaited from which to forge new connections Working with the City, we will landmark library officially opened in East Village in advance of the conduct a comprehensive visioning its doors—Hillier Block was home to Innovation Centre’s opening—a great exercise to identify potential active a New Central Library Experience opportunity for the innovation/ uses for the upper floors (2–6) to Centre and the Calgary Public tech sector to begin establishing its animate the building. Library Foundation’s headquarters. presence in East Village. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 32
Developer Residential Verve and Vibe. Partner Projects With a persistently sluggish economy, Late in 2018, FRAM + Slokker rising interest rates and CMHC’s welcomed excited new homeowners stricter mortgage qualifications to Verve, whose retail tenants will putting continued pressure on open for business in Q1 and Q2 consumer spending, none of our 2019. This will mark the first retail key developer partners launched activation along The Riff—the a new residential project in 2018. pedestrian corridor through the The ongoing economic slowdown heart of East Village between impelled us to reduce operating Fort Calgary and 5th Street Square. hours at the East Village Experience With Verve complete, we anticipate Centre (EVEC) in 2018. a 2019 sales launch for FRAM’s Vibe right next door. (This would be the Eager to capitalize on the continuing first sales launch in East Village momentum and ‘reputational since 2016, when N3 introduced capital’ of the East Village story, the marketplace to their innovative CMLC and our developer partners parking-free-condo concept.) are vigilantly tracking the housing market, constantly evaluating Vibe is a 10-storey tower whose product mix, square footages and apartment condominiums combine price points, and standing ready to style with affordability—a mid-range rev up the backhoes and concrete product with a variety of floorplans mixers as soon as conditions are to accommodate a range of buyers. ripe. As always, CMLC will work with our developer partners to prepare for residential launches, leverage opportunities in the marketplace and capitalize on the attention that high- profile projects like the new Central Library are bringing to East Village.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 34
Hat @ East Village Arris Copez Block
The Hat @ East Village broke ground In September 2014, Bosa The East Village Courtyard (Copez) in early 2017 and is currently under Development and RioCan project is a master-planned block construction. Cidex Developments Investment Trust announced a new with a mix of uses including expects to complete the project partnership combining a major residential, retail and office that tie by mid-2019, making East Village retail presence (including a new into the East Village Master Plan. even more inclusive by welcoming Loblaws City Market) with two The developer is assembling the residents not yet ready for (or not multi-family residential towers. land for mixed-use development really interested in) home ownership. The first of the project’s phases and has a DP underway with City of is RioCan’s ‘retail podium’ with Calgary for four mixed-use high-rise Offering one-, two- and (also for approximately 188,000 SF of retail towers on the block. the first time in East Village) three- space. Bosa will then build two bedroom units, the Cidex project is residential towers—one with perfect for young families…especially 43 storeys, the other with 26— with its plans for childcare services on atop this podium. the main floor. Totalling 236,000 SF, the 28-storey tower will include 221 Construction of the retail podium units (66 one-bedroom and studio began in spring 2016 and is apartments, 123 two-bedroom units advancing toward completion with and 32 three-bedroom units). The the opening targeted for Q1 2020. leasing program for The Hat will commence in Q2 2019. Watching hopefully for an upswing in the housing market, Bosa has yet to commit to a launch date for its first residential tower. Currently, it’s most likely to align with the 2020 opening of the RioCan centre. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 35
Commercial of village-format retail and office RioCan space. Restaurants on the main M2 by XYC Design + Development floor will spill out onto RiverWalk’s RioCan’s 5th & THIRD—180,000 SF public promenade. As the first of urban format retail space A new commercial development by new build along the East Village anchored by Loblaws City Market XYC Design + Development broke waterfront since CMLC began our and Shoppers Drug Mart—broke ground on Parcel M2 in May 2018. work here in 2017, its activation on ground in April 2016. 5th & THIRD This project is being co-developed RiverWalk plaza is an important will form the two-storey podium by CMLC and XYC. To enable XYC to milestone in our realization of the for a $500 million retail/residential deliver the above-grade structure, neighbourhood vision. development that occupies a full CMLC, as project manager, is East Village block—a strategic working with XYC and Ellis Don to ‘The Corner’ by Interloq partnership between RioCan and one develop the project’s parkade, which of East Village’s founding multifamily we will later divest. In 2018, Interloq Capital Corp. developer partners, BOSA, who will received a development permit deliver two spectacular residential By summer 2019, we expect the base from City of Calgary for Block B towers of 500+ homes. building to be ready for tenants to (immediately east of Calgary make improvements and prepare Drop-In Centre) with plans for a In November 2017, crews completed for opening. Tenants have not yet commercial development to help construction of the project’s been confirmed. activate the riverfront. The vision for underground parking structure (four the space—dubbed ‘The Corner’—is levels with 600 stalls). Above-ground The prominent riverfront location to establish a culinary destination construction of the two-storey next to the historic Simmons with main floor restaurant. Interloq retail podium remains on track for Building is ideal for XYC’s planned is currently in the process of tenant completion in Q1 2020. development, which will yield solicitation and negotiations. between 17,000 and 20,000 SF Construction is scheduled to In addition to Loblaws and Shoppers, commence in 2019. confirmed tenants include Olympia Liquor and Scotiabank. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 36
Over the past 12 years, CMLC of CRL revenue into strategic East Victoria has worked hard to turn East Village infrastructure improvements like Park Projects into a vibrant neighbourhood by the 17th Avenue SE extension, implementing the infrastructure 4th Street SE/Stampede Trail program defined in theRivers District retail corridor and utility upgrades. Community Revitalization Plan. To help fund additional infrastructure Though we’ve now completed initiatives required to realize our the lion’s share of our planned vision for downtown Calgary’s east infrastructure upgrades and public end (as articulated in the newly realm improvements in East Village minted Rivers District Master Plan and its outer fringes, significant work and as itemized in our 2017–2019 remains to be done in the remainder Business Plan), we have formally of the Rivers District. CMLC is kick- requested that the Government of starting the renewal of east Victoria Alberta approve a 20-year extension Park and benefitting Stampede Park to our current 20-year CRL term, with our investment of $150 million which ends in 2027.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 38
CRL Extension Proposal portion of property tax levies. For By our conservative estimates, the 20-year period of the CRL, the private developers will add The overall objective of the Rivers Province agreed to forgo a portion approximately $5.6–6.6 billion in District Community Revitalization of its property tax revenues in the new residential assessment value Plan Extension 2028-2047 is to Rivers District, enabling the City to and $2.7–4.3 billion in non-residential sustain the public infrastructure leverage this contribution to fund assessment value in the Rivers District program that’s now driving redevelopment projects. over the 40 years from 2007 to Calgary’s urban renewal by 2047. To date, nearly $3 billion in The intent of the CRL extension creating enticing opportunities planned investment has already is to help fund significant public for private sector development been realized in East Village. These infrastructure upgrades needed and redevelopment. It also aims investments are bringing residents, to enable redevelopment and to improve quality of life not only businesses and visitors into the area. through sustainable development stimulate investment in east Victoria and quality infrastructure but also Park. In East Village, infrastructure East Village and east Victoria through improved physical and social initiatives like flood-proofing, deep Park residents will benefit as the environments, future employment utility upgrades, public amenities, area continues to redevelop. New opportunities and much more. transportation connections to commercial uses are bringing neighbouring communities, services to a currently underserved The CRL provides self-sustaining streetscape enhancements and so area. New housing developments are funding for redevelopment without on stimulated significant private increasing the vibrancy and diversity affecting the City’s operating and and public investment during the of the district, making commercial capital budgets and without a first 10 years of the current 20-year ventures and community services general tax increase to all citizens period of the CRL Bylaw. Current more viable. of Calgary. A significant component investment includes commercial, of the CRL involves the Provincial residential and institutional/ educational developments. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 39
CRL Investment Principles Principle 3 • Give priority to projects 6. Green Line interface in Victoria Park that can activate sooner to stimulate 7. CS-Stampede Trail and Victoria In our 2017–2019 Business Plan, CRL capture (‘time is money’) Park Strategic Projects we outlined the five investment 8. RiverWalk Stage 3 principles we used to prioritize Principle 4 • Weigh CRL investment 9. 9th Avenue SE Cycle Tracks spending of the remaining CRL against total project magnitude to 10. 4th Street SE Cycle Tracks generation within the Rivers District allocate funds (see page 16), and we identified These projects tie together from Principle 5 • Allow CMLC to manage the top 10 priority planning and traffic, transportation planning and corporate risks by assuming project infrastructure improvement projects community-building perspectives. management responsibility for east Victoria Park: We initiated redevelopment of East Village in much the same way—that Based on these principles, CMLC Principle 1 • ‘Protect the CRL base’ is, by determining how we could identified 10 projects that would of multi-family residential and ‘connect’ East Village to the core and receive our immediate attention and commercial development within to surrounding neighbourhoods while focus over the next three years: the River District and achieve the attracting development. In the broader remaining 5.5 million SF of taxable 1. East Village infrastructure Rivers District, we are beginning development 2. East Village maintenance with the same focus on planning 3. Rivers District Master Plan and designing for connectivity. Principle 2 • Support projects 4. Olympic Plaza (without Parkade identified in theRivers District In 2019, our biggest project files or upgrades to Municipal Plaza) Community Revitalization Plan within the broader Rivers District, 5. 17th Avenue SE connection and East Village Master Plan while primarily east Victoria Park, will across Macleod Trail aligning with City objectives for include the following. growth and urban densification CMLC 2019 BUSINESS PLAN UPDATE • PAGE 40
Rivers District Master Plan Involving 36 engagement events and East Victoria Park assembling data from nearly 4,000 Land Strategy We have been working with our surveys about the future of Calgary’s design team, Civitas (Denver) and Cultural and Entertainment District, Our Rivers District Master Plan calls Calgary’s Gibbs Gage Architects, and our engagement efforts spanned the attention to a few catalyst projects a group of community stakeholders entire city. critical to attracting new development to to articulate a master-plan vision to the area, as growth in east Victoria Park guide redevelopment of east Victoria To make the most of this broad has been relatively stagnant for decades. Park (286 acres south of 9th Avenue engagement initiative while ensuring Our progress on these projects and SE)—another important step toward our master-plan vision would infrastructure programs will alert transforming the 504-acre Rivers pass the test of policy, we teamed private industry that the master plan District into Calgary’s Cultural and up with the City for the public is moving ahead. Entertainment District. This is one engagement program to advance of the 10 CRL-driven projects we our master plan as well as proposed We mindfully crafted the RDMP to committed to undertake in our amendments to a portion of the accommodate expansion of the BMO 2017–2019 Business Plan (see page 20). Beltline Area Redevelopment Plan Centre, development of a new event (ARP), which will be amended to centre and relocation of the bus barns Following two years of master planning support the RDMP. ARP amendments to reconnect the District to the Elbow informed by the working committee will go through Calgary Planning River—vital steps, in CMLC’s view, to that included Remington Development Commission and City Council in establishing the foundation for a Corporation, Victoria Park BIA, Q1 2019. viable Cultural and Entertainment Ramsay Community Association, District. In 2019, we will work to Inglewood and Beltline Community With the RDMP now in place, CMLC advance these projects. Associations, Calgary Stampede and will proceed with a land strategy City of Calgary, we spent nine months to unlock development potential CMLC will also lead discussions between engaging with Calgarians to ensure in the District and take the next the City of Calgary and Remington the ambitions of our vision for the serious steps toward placemaking Development Corporation to facilitate community align with their values, and city-building. a transaction on the lands known as needs and expectations. Railtown—11-acres crucial to advancing mixed-use residential development and integrating the Green Line Station and 5th Street SE Underpass. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 41
17th Avenue SE Extension 5th Street SE Underpass Rivers District Streetscape + Stampede Trail Design Guidelines As it dramatically enlarges the This infrastructure project will extend possibilities for the District’s Streetscapes will be an integral 17th Avenue SE into Stampede Park envisioned riverfront residential area part of east Victoria Park’s public to forge a pedestrian and vehicular by creating vital new connections spaces. This will require redesign link that increases connectivity and allowing the closure of of some existing streets to create and creates an attractive corridor 7th Street SE, a foundational a high-quality environment that and public realm for new retail and infrastructure piece for the RDMP is encourages pedestrian movement— commercial development. This is a new underpass that connects 5th shopping, walking to work, attending CMLC’s first scheduled horizontal Street SE to 11th Avenue SE. entertainment events—and provides infrastructure project in Victoria Park. connectors to pathway systems, transit, The underpass will be delivered in downtown and adjacent communities. two phases: Phase 1—Due Diligence With our consultant team and in Applying the key successes of East & Design and Phase 2—Construction. close collaboration with Calgary Village—namely, creating a consistent This program is being planned as Stampede and Calgary Transit, CMLC design language that signals entry part of the Victoria Park Green Line completed the schematic design for into a unique community—facilitates Interface project described in our this corridor in 2018. wayfinding and forges a community 2017–2019 Business Plan (see page 43). brand private developer partners can Detailed design is underway and leverage through condominium sales construction to enable the project As we prepare for construction of and commercial retail unit leases. will commence in 2019. this crucial north-south connection to and from Calgary’s Cultural and CMLC will create a streetscape plan Entertainment District, CMLC has for east Victoria Park and work with completed a feasibility report and the City to implement it. We will traffic impact analysis to understand complete streetscape improvements the opportunities the underpass in conjunction with flood-proofing and will provide, We solicited feedback utility upgrades. on the underpass throughout 2018, and we will continue to work with the City of Calgary’s Transportation Infrastructure and Green Line teams to realize efficiencies by aligning with work the City undertakes in 2019. Artist’s Rendering CMLC 2019 BUSINESS PLAN UPDATE • PAGE 43
9th Avenue Bridge BMO Centre to support the new Arts Commons Into Inglewood Rivers District Master Plan and other development initiatives like the Along with a new Victoria Park event CMLC is working with City of Calgary Green Line LRT expansion. centre and the BMO expansion, an to co-fund and deliver a new vehicular overhaul of Arts Commons is one of bridge into Inglewood. The prime In Q4 2018, CMLC entered into the three potential ‘mega-projects’ design consultant is MMM Group with a development agreement with we identified in CMLC’s2017–2019 support from Sturgess Architecture. Calgary Stampede to oversee this Business Plan (see page 36). project. With that agreement in Following a comprehensive public place, we are now preparing to While such capital-intensive projects engagement program, we shared the deliver what can only be called a far exceeded the reach of CMLC’s final design of the bridge with the catalyst project for east Victoria Park. initial 20-year term for our CRL-driven community in May 2018. Adding more than 500,000 SF to funding framework, our request the existing space, the proposed to extend the Rivers District CRL Construction on this City-led project is expansion will elevate the BMO for an additional 20 years puts us expected to begin in January 2019. To convention centre to Tier One—the in a position to reassess funding minimize disruptions during removal level required to attract international possibilities for Arts Commons. of the old bridge and construction business to the District. of the new one, a temporary bridge The intent for Arts Commons is to will be constructed. Construction Also in Q4 2018, we entered into a design and build a new theatre and of the bridge requires that 7th marketing agreement with Calgary support spaces for Arts Commons Street SE be closed for two years; Stampede to create mixed-use retail North (north of Teatro). For Arts however, we expect to see it closed and hotel projects. We subsequently Commons South, we would perform permanently to accommodate CMLC’s issued an RFP to solicit interest from major renovations including partial work in the broader Rivers District, hotel developer partners to support recladding of the existing building’s including the 5th Street SE Underpass the needs of the planned expansion. exterior. and RiverWalk’s next stages of In 2019, we will advance discussions As with all of the projects we undertake development along the bank of the with interested groups and secure a (with a few strategic and forward- Elbow River. partner for the site. thinking exceptions), CMLC would seek meaningful returns on our investment. BMO Centre Expansion/ As part of CMLC’s role on the Event Centre Assessment Committee, Event Centre In 2019, we will carefully assess next we will continue to work with the steps, which hinge on confirmation City of Calgary and Calgary Sport In our 2017–2019 Business Plan, of our proposed 20-year extension and Entertainment Corporation to CMLC committed to working with of the CRL. stakeholders to study the viability assess costs for constructing a new of expanding the convention space event centre and integrating it into and operation in Stampede Park’s the District. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 44
Corporate Communications We’ll demonstrate CMLC’s presence Corporate and placemaking approach in east Planning In 2019, our corporate communications Victoria Park through targeted team will serve several crucial functions. programming designed to highlight We will support CMLC’s land strategy future dimensions of the RDMP. And for east Victoria Park by advancing we’ll continue to steward CMLC’s profile our master-plan vision for the Rivers and position through monthly strategic District with land owners and developer communications in support of project partners, by advancing catalyst projects milestones/completions both inside and and by leveraging project status to outside the Rivers District. demonstrate progress and momentum in the District. To advance the profile of the Rivers District Master Plan and our positioning of Calgary’s Cultural and Entertainment District, we’ll develop a brand for the District. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 45
Community Programming vulnerable population with In 2019, with some 1,200 new services at the DI (CMLC will East Village condominiums now Safety and Vitality invest in this initiative, as it complete, the new Central Library directly addresses the challenge open to the joyful public and ALT As is the case in all downtown of social disorder in the area) Hotel now receiving guests, the Calgary communities, East Village dynamics of the neighbourhood has seen an increase in visible drug • Host ongoing meetings with have noticeably shifted. In response, use, trafficking and paraphernalia residents and stakeholders our programming strategy for 2019 over the past year—stats that through the Safety & Vitality focuses on creating more intimate, explain why East Village residents Committee more frequent neighbourhood are increasingly expressing concern activities and events that create about such behaviour in the • Advocate for the community opportunities for new residents to neighbourhood. and work closely with our connect and build on East Village’s community association, EVNA, burgeoning sense of community. We In 2018, CMLC worked with HIV to address concerns Community Link to help facilitate will also work with our community community engagement in response • Implement environmental design partners to plan and stage larger to a proposed safe consumption site changes where required to events such as 2019’s Canadian in the area. address safety concerns and Country Music Awards and support programming efforts. Indigenous Day Live. In 2019, we will step up our action on the matter with several initiatives: Community Placemaking The intent of our more measured & Programming approach is to attract residents and • Work with HIV Community Link visitors without the strain that can to integrate this service and its Since RiverWalk opened in 2010, come with too many events (especially associated outreach program CMLC’s focus on programming amid considerable construction based on feedback from the East Village’s public spaces has activity in the neighbourhood). engagement program and on the been instrumental not only in needs of residents and businesses animating the area but in helping As we advance our strategic reshape public perceptions to placemaking initiatives into east • Work with the Calgary Drop-in establish EV as a vibrant destination Victoria Park, we’ll be constantly and Rehab Centre (the DI) to well worth considering. on the lookout for opportunities foster a community outreach to profile Calgary’s future Cultural program to help connect the and Entertainment District, activate street life in the area CMLC 2019 BUSINESS PLAN UPDATE • PAGE 46
through connections to larger and forward looking. In Q4 of East Village Experience Centre events, demonstrate the power of 2018, we conducted a brand audit (EVEC) Operations placemaking, and help visitors and to measure the relevance and residents start to see themselves effectiveness of our current brand In 2018, in response to slower market in the District’s future. among competitors and against the conditions, we reduced EVEC’s project’s (product’s) own life cycle hours of operation. Until a new Marketing Communications as we are now halfway through the residential product launch by one of delivery of the project. our developer partners, we will use Brand Marketing programming opportunities in and As we look forward to potential around the building to draw library 2019 offers many opportunities to launches of Vibe and Arris in 2019, and hotel visitors, and we’ll serve as re-establish broad awareness of the we see a great opportunity to evolve an information resource for residents. East Village brand after several years our presentation of East Village’s without a residential product launch. offerings with a brand repositioning As part of the brand evolution work described above, we will work with The competitive landscape has focused on the following objectives: our developer partners on strategic changed substantially since East • Apply 2018 brand audit findings enhancements to EVEC to reflect the Village’s last launch, N3, in September to evolve the East Village brand progress in the community, position 2015. Persistent economic gloom with updated positioning, the neighbourhood to stand out and excess standing inventory has creative direction and/or among Calgary’s most appealing diminished demand for new inner- marketing campaigns residential offerings, and deliver city condos. Meanwhile, no fewer engaging experiences for visitors. than three Calgary projects currently • Advance the notion that in sales cycles identify and market East Village is an attractive Working within the space, our themselves as ‘master-planned urban neighbourhood in which to live, Ambassador team serves an villages’—East Village’s foundational work and play now important front-line role in niche from the very beginning. the community while assisting • Promote EV’s points of with delivery of the community We unveiled the current East Village differentiation and competitive programming model for the main brand alongside the master-plan advantage by strategically floor of the St. Louis Hotel building. vision in 2009—a full decade ago, and thoughtfully embracing all when the brand reflected aspiration that’s unique in our offering.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 48
CHAPTER TWO
OUTSIDE THE RIVERS DISTRICT CMLC 2019 BUSINESS PLAN UPDATE • PAGE 49
Our Business Strategy
Outside the Rivers District
To create value (ROI) for CMLC and City of Calgary as our shareholder by strategically selecting real estate development opportunities that not only support the organization’s vision and mandate but also best utilize our core competencies CMLC 2019 BUSINESS PLAN UPDATE • PAGE 50
Investment Principles As we have been discussing with 3. Maintaining control and visibility the Mayor and members of City for Projects Outside the CMLC will maintain control over Rivers District Council, CMLC is prepared to be strategically deployed to help the costs, price and quality. City achieve its long-term real In our 2017–2019 Business Plan, We will ensure sound financial estate strategy. In those endeavours, we outlined the five investment management and due diligence we will work collaboratively and principles we used to prioritize by adhering to approved processes cooperatively with the City’s other spending of the remaining CRL and basing decisions on timely, real estate departments (Urban generation within the Rivers District accurate data. (see page 16). Strategies, OLSH, R.E.D.S,) to maximize the efficiency and success We will also undertake socially In collaboration with our Board of of Administration’s city-building and environmentally responsible Directors, we have articulated a objectives. projects with the power to transform companion set of principles that communities provided they include 2. Achieving return on investment will further guide our investment approved processes that foster decisions outside the Rivers Profit is not merely an objective but accountability and transparency District, where investment cannot a requirement. We need to clearly (e.g., public engagement). be funded by CRL dollars but calls assess profitability with respect instead for traditional forms of 4. Ensuring alignment with CMLC’s to CMLC’s operations and ensure, land development financing. Each strategic vision and capability at a minimum, a 5 percent return potential project will be evaluated on investment. For each potential The projects we undertake must against four distinct criteria: project, we will perform a rigorous, align with our company’s proven 1. Maximizing shareholder return pro-forma-based analysis before competencies: brownfield/ seeking Board approval. urban redevelopment, mixed- We will prioritize project investment use development (residential/ Unless we will realize a higher ROI that creates long-term viability commercial/institutional), in the long term, CMLC will not for Calgary’s urban communities, infrastructure delivery, land strategy, play the ‘long game’; we will keep supports the City of Calgary’s branding and engagement, and our investment in a project for a objectives for urban densification, project management. placemaking and community maximum of five years. building, and considers future CMLC will charge a management fee dividend payments. of 2 to 5 percent for our expertise, to be negotiated per file. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 51
Current Projects Properly executed in parallel with Transit-oriented other capital improvement projects Development and School sites and similar in the area, DDO will serve as an Community Interventions City of Calgary assets important signal to other landowners and investors that the community is As the City of Calgary advances David D. Oughton (DDO) School site evolving. DDO is unlikely to return a the Green Line program and other profit for CMLC; however, given the TOD sites and projects, CMLC could In 2018, CMLC tested the market importance of this redevelopment capably take the lead in developing for the 8.3-acre site at 511 34th project, we will seek to deliver it with strategies and delivering these Street SE, presenting the exciting another opportunity that can provide projects for the benefit of the City. opportunity to development combined profit based on our Board- partners that could deliver on the directed development principles For communities deemed by the City engagement-informed visioning and achieve the expected 5 percent to require special intervention through work we completed in 2017. We return on investment. redevelopment and placemaking conducted a developer outreach efforts: following strategic discussions program during the latter half of Industrial Lands with the City and the transfer of lands 2018 and have established a shortlist on terms favourable to CMLC, we of potential partners to lead delivery For a parcel of land near the would imagine and deliver master- of the residential project. We expect Calgary Film Centre at 5736 75th planned neighbourhoods in a manner to announce our selected partner Avenue SE, CMLC has completed akin to our highly successful delivery in 2019. an early market investigation of of East Village. the development opportunity for condominiumized office/ retail storage units. We’ll explore opportunities for the land and assess market conditions to determine whether we’ll seek a development partner or divest of the site. The site is situated on 34th Street SE between 12th and 16th Avenues SE
David D. Oughton School Site
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 54
CHAPTER THREE
FINANCE & CORPORATE SERVICES CMLC 2019 BUSINESS PLAN UPDATE • PAGE 55
Designed to provide self-sustaining funding for Managing the Community Rivers District redevelopment with no impact on Revitalization Levy (CRL) City of Calgary’s operating and capital budgets, the CRL is CMLC’s main source of revenue. We’ve administered the CRL and received CRL revenue since 2008, using 2007 property tax assessments in the Rivers District as our baseline for measuring incremental increases in property tax revenues directly attributable to CMLC’s redevelopment and placemaking efforts.
By channeling any growth in property taxes spurred by private investment into a fund for infrastructure improvements and placemaking initiatives, the CRL enables CMLC to repay funds borrowed to finance redevelopment of public infrastructure within the Rivers District.
While many factors that influence CRL generation are beyond CMLC’s control, our team constantly monitors changes in assessed values and tax rates for existing properties and new development and, through strategic planning and big-picture thinking, we explore ways to maximize CRL generation. These include the volume and pace of new construction in the Rivers District; the balance of residential and commercial development; the residential product mix; changes in assessed values for existing properties; and new development and property tax rates. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 56
Calgary’s depressed economy over the past three years has created an oversupply of office space in the downtown core, driving down property assessment values city-wide. Our long-term development forecasts rely, in In accordance with the current CRL Bylaw, CRL part, on long-range population and employment growth will terminate on the earliest of the following: forecasts for the city. We expect Calgary’s economy to continue to improve in the short term, which will influence • At the end of a period of 20 years from our plans (and the pace of implementation) over the the year in which the CRL Bylaw was longer term. If oil and gas prices remain low, we may need approved by the Lieutenant Governor to reconsider and revise our development forecasts. in Council (December 31, 2027)
Proposed 20-year Extension of the CRL • The date that all borrowings for the Rivers District are repaid or recovered The provincial legislation that enabled the Rivers District from the revenues associated with the CRL has a 20-year term, from 2008 to the end of 2027. Community Revitalization Plan Given the CRL’s instrumental role in enabling CMLC’s remarkable transformation of East Village, we are • An earlier date specified by the endeavouring to extend the CRL by 20 years, to the Lieutenant Governor in Council. end of 2047, to sustain our efforts in revitalizing east Victoria Park and establishing the public infrastructure and private development framework for the evolution of Calgary’s Cultural and Entertainment District.
In October 2018, the City and CMLC submitted an updated Rivers District Community Revitalization Plan to the Province to support our request for a 20-year extension. If the Province of Alberta approves our request, the current legislation will be amended to expire December 31, 2047. The updated Rivers District Community Revitalization Plan is currently going through approvals with the Province of Alberta’s administration team and is expected to be presented to the Legislation by the end of 2018. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 57
1. Governance and Policy CMLC will also work to formalize Corporate our corporate responsibility plan to Services CMLC’s Board of Directors continues to ensure we exhibit consistent strong provide strong, committed leadership, values in everything we do. and a subcommittee of the Board provides specific governance 2. Strategic Planning leadership. To further assist with governance, additional subcommittees CMLC’s Board and staff are focus on Compensation & Human committed to bringing ongoing value Resources, Audit, and Environment, to our shareholder and ultimately the Health & Safety. citizens of Calgary. CMLC continues to identify and evaluate strategic At an operational level, CMLC’s opportunities outside The Rivers management continues to update District. We offer a unique skill set corporate policies and our employee and can apply the talents we used manual as necessary. CMLC will to stimulate redevelopment of East continue to operate in a transparent, Village in other parts of Calgary. timely, efficient manner and in the We have identified and discussed best interest of our shareholder, the with our Shareholder a number City of Calgary. of strategic opportunities and redevelopment initiatives including Corporate governance plays an the David D. Oughton School important role in the way CMLC works site and the Film Centre lands. with consultants and stakeholders CMLC is evaluating these potential to deliver all infrastructure projects, development options and will including the 9th Avenue Parkade. To present our plans to the shareholder ensure the success of all projects, we for consideration and approval as must balance the needs and wishes they are more fully developed. of all key stakeholders with a strong governance plan. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 58
3. Administrative 4. Enterprise 5. Succession Planning Operations Risk Management With new projects on the horizon, we A significant component of CMLC’s CMLC’s Enterprise Risk Management will work to align the capacities of our administrative operations involves (ERM) gives the organization a team with our project needs, assess ongoing support of infrastructure systematic approach to managing skills and provide opportunities for delivery, development deals and all risk. The ERM program is embedded growth among our team, and structure of our business units. We ensure our in CMLC’s business activities our senior management team to lead development partners adhere to to enhance effective project the strategic direction of the company. the master plan through the design management, and it gives the Board, With a view to managing for success process, and we assist them in the the senior management team and over the long term, we will work with planning and permitting process with the rest of the organization improved our Compensation & Human Resources the City of Calgary when necessary. risk information to support strategic committee to develop executive decision making. succession plans in 2019. Other administrative operations include ongoing information The ERM program gives us a technology support; overseeing platform and process to consistently all building operations; corporate identify and assess risks and a financial reporting and financial clearly defined risk governance analysis; contracting and purchasing; structure with clear roles and risk management; ongoing review responsibilities and clear alignment of CMLC’s internal controls; and between strategic objectives and formalization of CMLC’s operating organizational risks. best practices.
CMLC management continues to develop a comprehensive human resources strategy.
CMLC 2019 BUSINESS PLAN UPDATE • PAGE 60
Financial CMLC’s financial strategy for 1. Community 2019 represents a synthesis of Revitalization Levy Strategy plans and project information (CRL) current to December 2018. The following financial analysis The CRL, which has appeared on the addresses the five main aspects property tax bills for Rivers District of our financial strategy: residents since 2008, continues to be CMLC’s primary source of revenue. 1. Community Revitalization The estimated total CRL generation Levy (CRL) for 2019 is $36 million. 2. Project costs 3. Debt financing The projected CRL generation for 4. Administrative costs 2019 is based on estimates of the 5. Alternative forms of financing projected tax rate increase for 2019 and the actual 2018 assessment We have land sales expected values for the Rivers District as well to close in 2019, and we may as projected values for 2019. contemplate further land acquisitions. We have not Our method of estimating future included these amounts in the CRL continues to be conservative cash flow projections as the as it is based on projecting contracts may allow for the future incremental property tax closings to be deferred. assessments resulting from new development in the Rivers District. CMLC 2019 BUSINESS PLAN UPDATE • PAGE 61
2. Project Costs
Approved Project Costs
To the end of December 2018, CMLC has obtained approval from our shareholder, the City of Calgary, to undertake $523.5 million in projects. The following table shows the current budgets, estimated spend to December 2018 and planned spending for 2019:
Estimated spend Estimated Approved to December 2019 budget 2018 spend PROJECT ($ millions) ($ millions) ($ millions)
East Village Infrastructure 133.0 7.0 3.0
Environmental 10.0 — 1.0
New Central Library—CMLC contribution 70.0 41.6 3.3
Victoria Park Planning 1.5 1.6 —
17th Avenue SE Extention & Stampede Trail 68.0 1.0 12.7
9th Avenue SE Bridge 12.0 — 12.0
5th Street SE Underpass 40.0 0.5 14.6
Extension of 9th Ave SE and 12th Ave SE Cycle Tracks 2.0 — 1.7
Total 336.5 51.7 48.3 CMLC 2019 BUSINESS PLAN UPDATE • PAGE 62
3. Debt Financing
In conjunction with the approved projects above, the been advanced against these loan bylaws. In 2019, City of Calgary has approved four loan bylaws totalling we expect $26 million to be advanced to fund ongoing $367.5 million. To the end of 2018, $275.5 million had project construction.
DEBT COSTS Estimated 2018 Projected 2019
Interest Expenditures 7,760,000 7,531,000
Principal Repayments 16,386,000 24,608,000
TOTAL DEBT REPAYMENTS 24,146,000 32,139,000
4. Administrative Costs & Revenues
CMLC’s perennial objective is to prudently and efficiently steadily declining. In 2019, we will undertake a strategic manage administrative costs. Our administrative costs budgeting exercise aimed at further reducing costs. as a percentage of CRL earned during the year are
ADMINISTRATION COSTS Estimated 2018 Projected 2019
Marketing & Communications 1,800,000 1,800,000
Strategic Opportunities 150,000 100,000
East Village Repairs & Maintenance 1,350,000 1,300,000
General & Administration 4,145,000 4,245,000
TOTAL ADMINISTRATION 7,445,000 7,461,000 CMLC 2019 BUSINESS PLAN UPDATE • PAGE 63
Interest Income Cost Escalation
Interest income represents the funds earned on CMLC is in a position to take advantage of the potential cash balances and investments held by CMLC. surplus of trades. The economic environment also translates to downward price pressure and affords Rental Income CMLC the opportunity to negotiate favourable pricing on various contracts. In the coming years, we will Rental income represents income earned from continually monitor the industry and use existing best various land parcels owned by CMLC. practices in contracting to minimize cost escalation.
Other Income
This income is the fee earned to cover CMLC’s administrative costs when we complete project work on behalf of third parties.
REVENUES Estimated 2018 Projected 2019
Community Revitalization Levy 38,000,000 34,000,000
Land Sales — 4,900,000
Interest Income 10,000 25,000
Rental Income 1,371,600 1,484,000
Other Income 426,000 941,000
TOTAL REVENUE 39,807,600 41,350,000 CMLC 2019 BUSINESS PLAN UPDATE • PAGE 64
5. Alternative Forms of Financing Consulting & Administration Revenue
We’ve been able to leverage our internal expertise by Debt Financing providing consulting and project management services CMLC’s current debt capacity is set at $15 million. to external stakeholders. We have been approached This line of credit facility is with Alberta Treasury by numerous potential partners to help manage their Branch—CMLC’s bank. It enables CMLC to seek and projects—work for which we can charge administration engage in work outside the Rivers District. To date, fees. These partners include Calgary Parking Authority, we have $1.72 million in Letters of Credit being Calgary Housing Commission and Fort Calgary. We will applied against this line of credit facility. continue to look at ways expand this line of business in 2019 and beyond. Joint Ventures Risk Assessment To realize our long-term financial goals and expand our reach beyond the Rivers District, CMLC will seek CMLC continues to monitor the ever-changing to establish strategic, mutually beneficial joint venture economic and market conditions that impact the partnerships. Joint ventures will help CMLC engage Calgary real estate and construction markets. As in in projects that will see our business grow faster, prior years, if conditions warrant, CMLC will quickly increase productivity and generate profits. CMLC reassess our position in relation to our financial can participate in joint ventures by contributing land, model and make any necessary adjustments. Given professional expertise and cash injections. Establishing the conservative nature of our planning, we currently joint ventures will allow us to maximize project impact anticipate no need for adjustments. CMLC continues through combined resources, shared risks and costs, to live within its means and operate conservatively and access to greater resources (including specialised with the projects we undertake. staff). Joint ventures will also give us access to inexpensive forms of financing we would otherwise be unable to access.
Our success in a joint venture will depend on comprehensive research and analysis of goals and objectives. Effective communication of the business plan to everyone involved will also be essential. Calgary Municipal Land Corporation Telephone 403.718.0300 430 8th Avenue SE calgarymlc.ca Calgary, Alberta T2G 0L7