Imagining possibilities. Seizing opportunities. 2020 BUSINESS PLAN AND 2020-2024 STRATEGIC PLAN STRATEGIC PLAN AND 2020-2024 BUSINESS 2020 CONTENTS

03 Introduction 46 Chapter Two Outside the Rivers District 06 Milestones of 2019 12 2020 Economic Outlook 48 David D. Oughton Site 13 Future Forward: Our Five-Year Strategic Plan 49 SAPL Parking Lot Design 14 Mission, Vision and Guiding Principles 50 Inglewood Parking Lot Design Competition 19 Strategic Priorities 2020-2024 51 Film Centre Land

24 Chapter One 52 Chapter Three Inside the Rivers District Corporate Operations

26 East Village Projects 54 Marketing & Communications 28 9th Avenue Parkade & Innovation Centre 55 Managing the Community Revitalization Levy (CRL) 29 9th Avenue SE Cycle Tracks 56 Corporate Services 30 9th Avenue SE Bridge Replacement 59 Financial Strategy 31 Ongoing East Village Maintenance 32 Interpretive Centre 33 East Village Place Renovation 34 Block 40 (W.R. Castell Building) 36 East Victoria Park Projects 38 17th Avenue SE Extension + Victoria Park-Stampede CTrain Station 39 BMO Centre Expansion 40 BMO Hall F Construction 41 Calgary Event Centre 42 Rivers District Streetscape Guidelines 43 Transformation 44 Enabling Work – Future Projects CMLC 2020 BUSINESS PLAN • 3

INTRODUCTION CMLC 2020 BUSINESS PLAN • 4

Resilience—the ability to recover from, adjust to and anticipate change—is, in the world of community building, more than an asset. It’s an imperative.

Just as we are driven to build resilient whose progress doesn’t miss a beat, even communities—ones that work, that when the broader economic climate and attract attention, that invite people and the markets it influences are tempestuous. connections—CMLC embraces resilience as a quality crucial to our organization’s Success, we realize, grows from the inside long-term success. out and the ground up. Only if we keep our organization relentlessly focused on being In the dogged pursuit of our goals, we draw adaptable, responsive and responsible will energy and inspiration from meaningful we succeed in building communities with collaboration, bold innovation and constant those same qualities. evolution. These are the things that keep us motivated to seek and achieve the results That’s exactly what we’re doing in that make our city shine. ’s east end: building the continuity, connections and Because we never compromise or simply community spirit required to cultivate settle for just ‘getting the job done’, diverse economies, multi-generational Calgary’s east end is thriving. It’s emerging legacies and urban experiences that as a model for urban redevelopment—one are second to none.

CMLC 2020 BUSINESS PLAN • 6

MILESTONES OF 2019

Major partnership project approvals 3rd Street SE public realm In May 2019, we announced the project team that will transform BMO Centre into a modern and In 2019, we completed our streetscape improvements international-ready venue. CMLC will serve as along 3rd Street SE—from 9th Avenue to 5th Avenue SE— development manager, overseeing a project team a two-year process of dramatically reshaping a corridor carefully selected for their specialized expertise from dominated by vehicles, overhead lights and LRT lines applicants hailing from across North America. Prime into an attractive, pedestrian-friendly streetscape. The design consultant team SPS (Stantec, Populous, transformation means people can connect from the S2 Architecture) will head the project’s design, new Central Library to the downtown core and beyond supported by a team of engineering and construction through a much more attractive and inviting streetscape. specialists. George C. King bridge A couple months later—in July— voted to support an agreement between the City, Last year, a routine inspection uncovered an anomaly in Calgary Sports and Entertainment Corporation and the bridge structure that required a brief closure and a to build a new event centre. They short-term repair to keep the bridge structurally sound have enlisted CMLC to serve as development manager and safe to use while our engineering firm completed a for the new sports and entertainment complex—a role thorough assessment and devised a more permanent fix. that will include leading public consultations on its That longer-term fix was completed this November, with design and programming and ensuring it integrates no impact on the hundreds of pedestrians and cyclists seamlessly with the vision for Calgary’s Culture & who use it daily. Entertainment District. 4th Street SE cycle track

CMLC worked with City of Calgary to plan and develop new bike lanes to make it easier and safer for cyclists to come and go from East Village. The new tracks along 4th Street SE are now complete, giving cyclists safe passage between RiverWalk and the existing 9th Avenue bike lanes—and onward to the rest of the city’s well-used cycle network. We also added on-street parking to 4th Street SE. New traffic signals at 8th Avenue, 6th Avenue and Riverfront Avenue SE improve safety and traffic flow for all roadway users.

5th Street Square improvements

Though we opened this public square and gathering place in November 2014, deficiencies in the original ground covering impelled us to close the square for upgrades and repairs. This summer, we replaced the resin-bound gravel surface with glass impregnated concrete. The newly reopened gathering place will be home, for the next five years, to Dennis Oppenheim’s The Device to Root Out Evil—an impossible-seeming upside-down church that’s added lighting, height and colour to the square, attracting community events and shutter-happy Instagrammers alike. CMLC 2020 BUSINESS PLAN • 8

The Hat brings rental options to East Village

Summer 2019 saw the completion of East Village’s first residential rental tower, The Hat—a 28-storey building by Cidex Developments that broke ground in 2017. The Hat is unique in East Village in offering one-, two- and three-bedroom units to appeal to all demographics—including a childcare centre right on its main floor (scheduled to open in 2020).

Arris begins its ascent into Calgary’s skyline

BOSA Development started construction on the much-anticipated first phase of Arris—East Village’s second residential rental building and part of a commercial-residential partnership between BOSA Development and RioCan Investment Trust. The first of two multifamily residential towers planned for the site, the Arris tower’s 26 storeys will bring an additional 190 rental units to East Village. Verve gets new retailers

FRAM + Slokker’s Verve—a chic, contemporary and well-appointed condo tower in the heart of East Village— added to its slate of street-level urban retailers in 2019 when it welcomed Good Earth Coffeehouse, Hart Healthy Foods and V Medi Spa. Together with existing tenants Panago Pizza and Barber Culture, these new retailers give residents of Verve and all East Villagers lots of local options for eating, drinking and shopping!

M2 activates RiverWalk Plaza

M2 is East Village’s latest mixed-use building, and its completion gives Calgarians a few more reasons— and ways—to enjoy our spectacular riverfront. This four-storey building delivers new street-level retail (a second location for Bow Cycle and a restaurant by Concorde Group) that will open in 2020, topped by two storeys of office space and a residential penthouse suite. Built by Calgary’s XYC Design + Development and designed by Brooklyn-based nARCHITECTS, M2 packs plenty of architectural interest and energy into a small but spectacularly situated riverfront lot. U of C’s SAPL moves into Castell Building

In April, U of C’s School of Architecture, Planning and Landscape (SAPL) launched the City Building Design Lab—an innovative research hub now occupying the lower two floors of the W.R. Castell building. Since opening its doors, more than 100 public and industry events have been hosted in the space. CMLC committed $1.5 million to the program over the next five years to create unique opportunities for students to connect with the community and the building industries while they learn and implement practical innovations in design, construction and operational management. We are now a member of SAPL’s advisory committee and are excited that the school will soon be adding fresh talent and energy to Calgary’s economy and workforce.

Development partners secured for David D. Oughton site

In April, we welcomed RNDSQR as our development partner for a project that will transform the 8.77-acre former David D. Oughton school site into an affordable, multi-generational development designed to showcase the potential of Calgary’s diverse east side. Over the next two years, CMLC and RNDSQR will complete the development plan, obtain approvals, complete designs and prepare the site for construction. The first phase is slated to break ground in 2021, kicking off a new direction for the neighbourhood of Albert Park/Radisson Heights.

CMLC 2020 BUSINESS PLAN • 12

2020 ECONOMIC OUTLOOK

ATB Financial’s latest Economic Outlook Alberta’s unemployment rate now stands at 6.9 percent— (September 2019) predicts that, after sputtering marginally higher than last year’s 6.6 percent. According in 2019, Calgary’s and Alberta’s economies will grow to Alberta’s provincial budget announcement in October, modestly next year. Sluggish growth in the oil & gas the unemployment rate is projected to remain stubbornly sector continues to dampen job creation, consumer high through the end of 2019—averaging 6.7 percent— spending and construction activity. and not drop below 6.0 percent for at least three more years. Calgary Real Estate Board (CREB) saw modest ATB chief economist Todd Hirsch said he expects progress in August—smaller inventory and an uptick 2.0 percent growth in Alberta’s GDP in 2020—what in sales for the third straight month—although the he calls “still modest, but…definitely an improvement benchmark price for detached homes sat at $488,700— over 2019.” about 1.7 percent lower than at the same time last year.

ATB predicts only 0.8 percent real GDP growth According to CREB, new-home starts continue to for the province this year. The heartier 2.0 percent ease across all housing types—likely due to elevated growth projected for 2020 still lags behind last year’s inventories in both the new-home and resale markets slightly peppier 2.3 percent growth and 4.6 percent combined with stabilized demand. The value of building the year before. permits issued by Alberta municipalities is tracking at about 15 percent lower this year than last. If the amount (Interestingly, the latest Conference Board of Canada of product under construction (26 percent of which report forecasts a “mild recession” for Alberta in is slated for the rental market) continues to fall, that 2019—a GDP contraction of 0.8 percent. Construction should help bring more balance to the housing market. and drilling will be hardest hit, with expected declines of 10.4 and 30.3 percent respectively.)

Hirsch does not rule out positive movement in areas such as capital investment and jobs growth, but he says they will be contingent on resolving key uncertainties (market access and concrete action on pipelines chief among them). CMLC 2020 BUSINESS PLAN • 13

FUTURE FORWARD: OUR FIVE-YEAR STRATEGIC PLAN

2019 was a year of significant milestones, major Our Board and management team considered that project approvals and loads of optimism about the feedback, took a close look at our internal and external future. Twelve years into CMLC’s mandate—to achieve practices and performance measures, and considered the the City’s objectives for urban densification and opportunities and threats we face in pursuit of our vision. community renewal, infrastructure investment and placemaking—we’ve cultivated a reputation for making The takeaways from this introspective process were things happen and for integrating the redevelopment a refreshed take on our mission, vision and guiding of downtown Calgary’s east end with the needs of principles. We also identified four priority areas in residents, developer partners and the city as a whole. which we’ll focus our efforts over the next five years. Perhaps most important, we formalized a solid strategic For our organization, this was also a year to take a close plan to guide CMLC as we evolve into an even more look at what we do, how we do it, and how we can do efficient, relevant and visionary team. it even better for greater impact and for the collective good of Calgary and its residents. In that spirit, CMLC On the pages that follow, we articulate our strategic embarked in summer 2019 on a comprehensive effort priorities for 2020 to 2024 and the supporting corporate to crystalize our mission, review and refine our vision, actions we’ll take toward achieving them. We’ll monitor polish our guiding principles and clearly articulate performance regularly to evaluate progress and adjust forward-thinking priorities to guide our way over the as needed to ensure we stay on track. next five years.

The strategic planning process

We enlisted WMC—a Calgary-based professional management consultancy with specialized expertise in strategic planning—to get the ball rolling. Their consultants helped us interview dozens of stakeholders (internal and external) and gather perspectives on CMLC’s current landscape, identity, performance and priorities. CMLC 2020 BUSINESS PLAN • 14

MISSION, VISION AND GUIDING PRINCIPLES

To ensure currency and relevance in our mission, vision and guiding principles, our strategic planning activities included reviews of and updates to these foundational brand elements. On the pages that follow, we include both the original (2007-2019) and updated versions along with some of the thinking that got us there. Our 2020 mission, vision and guiding principles exude the same progressive, passionate spirit we’ve had from the beginning while giving renewed strength, purpose and clarity to our work. CMLC 2020 BUSINESS PLAN • 15

OUR MISSION

2007–2019 Our passionate, experienced How we’ll achieve our mission placemaking brings new energy BUILD to old neighbourhoods, creates • Inspire interest, investment and development credibility and confidence, and in the places we’re shaping inspires communities to build, • Amplify impact by bringing together grow and believe. passionate people, reputable partners and innovative practices

2020 AND BEYOND GROW Strengthening connections between • Foster civic pride and advocacy for the people and the places they share, our future of Calgary passionate approach to elevating the • Grow a sense of belonging in—and urban experience infuses communities accountability to—Calgary’s redeveloped communities with new energy and the confidence • Attract new residents and businesses to to build, grow and believe. boost the vitality, diversity and economic sustainability of Calgary neighbourhoods

BELIEVE • Strengthen community spirit by nurturing engagement and belonging in places appealing to live, work and learn • Keep Calgary and its communities relevant through leadership in creating unforgettable places…and bringing them to life CMLC 2020 BUSINESS PLAN • 16

OUR VISION

2007–2019 How we’ll achieve our vision

CMLC is Calgary’s go-to placemaker • “imagine the possibilities” underscores for urban redevelopment. our ability to recognize the true potential of places, to envision their futures and tell their stories, and to imagine the pathways 2020 AND BEYOND to fulfilling that potential. CMLC is a community builder: we • “seize the opportunities” positions CMLC as imagine the possibilities and seize the opportunistic. That’s the advantage of seeing opportunities to transform Calgary possibilities no one else sees: they’re ours for and the ways people experience it. the taking. This is fundamental to creating value for our shareholder. • “transform[ation]” is a concept CMLC should take ownership of. Because that’s what we do at so many levels. We transform places, perceptions, people... CMLC 2020 BUSINESS PLAN • 17

OUR GUIDING PRINCIPLES

2007–2019 2020 AND BEYOND • Redevelop, implement and activate • Revitalize urban spaces and animate public infrastructure to meet the public places to meet the needs of needs of the community and the the City and its citizens City of Calgary as sole shareholder • Manage land and infrastructure • Manage the investment in land investments to optimize financial and infrastructure for optimal returns and enable long-term social, financial return environmental and community resilience • Demonstrate leading practices • Operate intelligently—and innovate for sustainable development relentlessly—in our pursuit of excellence • Demonstrate innovative and effective operating processes and practices

CMLC 2020 BUSINESS PLAN • 19

STRATEGIC PRIORITIES 2020–2024

As part of the strategic planning process 01. MAXIMIZING described earlier, we also identified IMPACT four priorities to focus our efforts in the coming years. We consider these the areas in which we can have the greatest 02. RELATIONSHIP impact as they best capitalize upon our MANAGEMENT strengths and experience. With these in mind, we can forge clear paths forward as we write the next exciting chapters 03. COMMUNITY-BUILDING of Calgary’s urban renewal story. INNOVATION

04. EXCELLENCE IN PROJECT EXECUTION CMLC 2020 BUSINESS PLAN • 20

01. MAXIMIZING IMPACT

For our organization, as for our city, resilience is crucial to seizing opportunities and managing challenges while remaining firmly focused on projects, priorities and our path to the future. Managing and growing our capabilities with rigour and foresight empowers us to achieve our strategic priorities and maximize community impact.

CORPORATE OBJECTIVES

• Establish project criteria to guide and support decisions related to CMLC projects • Enhance financing strategies to target projects that contribute to CMLC’s and the City’s financial stability • Grow capacity and capability by attracting and developing top talent CMLC 2020 BUSINESS PLAN • 21

02. RELATIONSHIP MANAGEMENT

We’ll mindfully advance our relationships with key stakeholders, as mutual respect and understanding are linchpins of our mandate and vision.

CORPORATE OBJECTIVES

• Evaluate our current relationships and identify opportunities to strengthen them • Work with key stakeholders to develop collective goals and pursue common opportunities with clear roles and responsibilities • Develop criteria for proactive relationship management to foster collaborative, effective relationships CMLC 2020 BUSINESS PLAN • 22

03. COMMUNITY-BUILDING INNOVATION

Build community through placemaking that fosters development, awareness and participation.

CORPORATE OBJECTIVES

• Show leadership by setting standards— and precedents—in community building • Establish guiding principles for testing and showcasing innovative approaches in community development • Leverage existing and new partnerships to realize community-building opportunities CMLC 2020 BUSINESS PLAN • 23

04. EXCELLENCE IN PROJECT EXECUTION

Deliver high-quality projects on time and on budget.

CORPORATE OBJECTIVES

• At project level: use rigour in selecting partners and foster collaboration to integrate project teams—keys to delivering on our commitments • At stakeholder level: deliver projects with clear communication (internal and external) • Risk management: apply measurable risk management and safety practices to all projects • Establish project goals to identify and support community vision CMLC 2020 BUSINESS PLAN • 24

CHAPTER ONE 01INSIDE THE RIVERS DISTRICT CMLC 2020 BUSINESS PLAN • 25

Our Business Strategy 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 2020 BUSINESS PLAN • 26 EAST VILLAGE PROJECTS

East Village Land Strategy East Village Developer Partner Activity In 2019, we worked diligently to negotiate RioCan’s much-anticipated 5th & THIRD and draft purchase and sale agreements urban retail centre will open in 2020. on three East Village land holdings: Block K (Eve Block), Block Q (phases 3 and 4) and 5th & THIRD will be home to East Village’s Block Y. We expect to announce our selected first full-service grocery store—Real developer partners by summer 2020. Canadian Superstore—alongside other retailers. BOSA Development will continue construction above on its rental apartment tower, Arris. Block Q Phases 3 & 4

Block K

Block Y CMLC 2020 BUSINESS PLAN • 28

9th AVENUE PARKADE & INNOVATION CENTRE

80 million

Kasian, 5468796 Architecture, EllisDon Construction

2020 Actions • Complete the superstructure • Begin hardscaping/ landscaping while completing building façade • Turn over to CPA and Platform in Q4 2020

Q4 2020

In partnership with Calgary Parking Authority (CPA) and Platform Public opening Calgary, we’re constructing an innovative building consisting of a 2021 four storey above grade parkade with 508 stalls and an innovation centre consisting of open, shared office and exhibition space. Future-proof in its design (with the potential for conversion into office or residential space), the project aims to build community through partnership and collaboration. CMLC 2020 BUSINESS PLAN • 29

9th AVENUE SE CYCLE TRACKS

1.4 million

EXP, Stantec

2020 Actions • Complete 9th Avenue cycle tracks between to 4th Street SE

Q4 2020

In partnership with City of Calgary, we’re adding a new cycle track—a bi-directional bike lane separated by a physical barrier from the roadway and sidewalks—to the south side of 9th Avenue SE between Macleod Trail and Inglewood Bridge. CMLC 2020 BUSINESS PLAN • 30

9th AVENUE SE BRIDGE REPLACEMENT

23 million (CMLC contribution: $7 million)

City of Calgary, PCL Construction, WSP Engineering, Sturgess Architecture

2020 Actions • Complete bridge construction • Reflow traffic onto new bridge • Begin refurbishing Sculpture Park and adding landscaping and commemorative signage

At 110 years old, the bridge over the at 9th Avenue SE has Q2 2021 reached the end of its lifespan. Its replacement will add cycling and pedestrian pathways, support transit improvements, meet modern design standards, add an additional vehicle lane and improve flood resiliency, ensuring its ability to safely and efficiently convey folks over the Elbow River for the next 100+ years. CMLC 2020 BUSINESS PLAN • 31

ONGOING EAST VILLAGE MAINTENANCE

Green Meadow Landscapes and others as required.

2020 Actions • Scheduled and as- needed maintenance of CMLC-owned and maintained spaces

Ongoing

As CMLC takes on more projects and broadens our scope of responsibility, the demands on our maintenance team grow. Now that East Village is more than a decade into redevelopment, some of the facilities and infrastructure require added attention to keep them in good repair. Our maintenance team works year-round to keep everything tiptop. CMLC 2020 BUSINESS PLAN • 32

FORT CALGARY INTERPRETIVE CENTRE

12.1 million

Nyhoff Architecture, PCL Construction

2020 Actions • Work with Fort Calgary to advance the project and establish a timeline on final design and ground-breaking • Project due diligence support

To be determined based on project funding

CMLC is managing a major renovation and construction project that will give Fort Calgary a new building to better support its exhibits, educational programming and event rentals while also improving onsite retail and food & beverage services. The design of the new building will meaningfully incorporate Indigenous history, better celebrate Calgary’s origin story and deliver innovative, experiential learning opportunities. CMLC 2020 BUSINESS PLAN • 33

EAST VILLAGE PLACE RENOVATION

4.3 million

Group2, EllisDon Construction

2020 Actions • Refresh levels 1 and 1.5 (painting and updating theatre space) • Renovate level 2 for tenant (adding office space and multi-purpose rooms)

Q4 2020

In partnership with the Calgary Housing Company, we are managing a renovation of East Village Place to freshen its look and transform its second storey into office space for the non-profit group Carya, which provides all-ages counselling,development services and main level for future leasing opportunities. CMLC 2020 BUSINESS PLAN • 34

BLOCK 40 (W.R. CASTELL BUILDING)

To be determined based on project scope

Pending Project Approvals

2020 Actions • Acquire the W.R. Castell building and adjacent police processing building • Review potential for multi-tenant space, including cost estimates

To be determined

Block 40 is a land parcel that encompasses the W.R. Castell Building— the former site of Calgary’s Central Library—and the adjacent police processing building. In April 2019, took over the ground level of the Castell Building to use as a teaching lab, collaborative research hub and event space. With our consultant team, we will continue to explore ideas and develop financial forecasts for additional uses and activation of the entire block.

CMLC 2020 BUSINESS PLAN • 36 EAST VICTORIA PARK PROJECTS

East Victoria Park Land Strategy In 2019, CMLC and Calgary Stampede (CS) Under another 2019 agreement, CMLC identified a site adjacent to BMO Centre will lead the marketing and development for a hotel that will service the needs of the strategy for CS-owned lands, identifying expanded Tier 1 facility. After completing a and shepherding private mixed-use hotel market study to evaluate the opportunity development opportunities crucial to and a site analysis to ensure alignment with realizing the vision articulated in the RDMP. the RDMP, we initiated a formal RFP process to identify a preferred developer partner. We In 2020, we will deliver plans for lead are currently working with CS to finalize the generation, developer outreach and development agreement and will announce promotion of private investment our developer partner in 2020. opportunities in the district.

CMLC 2020 BUSINESS PLAN • 38

17th AVENUE SE EXTENSION + VICTORIA PARK-STAMPEDE CTRAIN STATION

83 million

IBI Group, O2 Planning + Design, ISL Engineering, WSP and GEC Architecture

2020 Actions • Complete project design and regulatory approvals • Begin demolition of Stampede Station The 17th Avenue extension—a major and vital infrastructure project— • Begin construction will extend 17th Avenue east across the CTrain tracks, where it will of temporary station continue southeast along the façade of BMO Centre and connect into tracks and platforms Stampede Trail. This will forge an important pedestrian and vehicle • Begin construction corridor that links new and existing mixed-use development. In tandem of new maintenance with the road work, we’ll be overhauling the Victoria Park-Stampede track bridge CTrain station—increasing platform capacity, removing the stairs and overpass at 15th Avenue and adding two at-grade pedestrian crossings of Macleod Trail (and also building a bridge across the Elbow River to 2023 relocate the LRT maintenance track from its current location at the station). We will put a temporary station and platform in place to avoid a long-term station closure during construction, minimizing impacts to users. CMLC 2020 BUSINESS PLAN • 39

BMO CENTRE EXPANSION

500 million

Stantec, Populous, S2 Architecture; RJC, Urban Systems, O2 Landscape Architecture

2020 Actions • Complete detailed design and regulatory development permits • Begin enabling works and structural upgrades for Halls B & C

CMLC is development manager for BMO Centre’s latest expansion— • Demolish Hall A a renovation that will increase its total floor space to nearly one million and Corral square feet and more than double its rentable space. We will build • Publicly reveal new new exhibition space, a ballroom, meeting rooms, pre-function areas, building design loading docks, food and beverage facilities, and administrative office space for Calgary Stampede. The project, supported through equal contributions from the federal, provincial and municipal governments, June 2024 will enable Calgary to compete with top-tier convention venues around the world and attract millions of delegates to our city. This exciting new convention centre space will form a vital dimension of Calgary’s Culture & Entertainment District. CMLC 2020 BUSINESS PLAN • 40

BMO HALL F CONSTRUCTION

35 million (as part of $500 million BMO expansion budget)

Gibbs Gage / Stuart Olson, RJC, Designcore, S&A, Urban Systems

2020 Actions • Complete construction of Hall F prior to Stampede 2020

Q2 2020

Construction got underway in spring 2019 on Hall F—a new 100,000 SF building that will enable BMO Centre business to continue during the main expansion. CMLC 2020 BUSINESS PLAN • 41

CALGARY EVENT CENTRE

550 million

Pending Procurement

2020 Actions • Initiate procurement process to select project team consultants • Complete due dilligence work • Execute public engagement program • Begin concept design

Anticipated groundbreaking 2021

In August, City of Calgary approved a new event centre and public outdoor festival space—vital dimensions of Calgary’s Culture & Entertainment District. As development manager, CMLC will oversee the facility’s design and construction. Situated at the threshold of Stampede Park, this showpiece facility will serve as the new ‘front door’ to east Victoria Park. CMLC 2020 BUSINESS PLAN • 42

RIVERS DISTRICT STREETSCAPE GUIDELINES

50,000 research phase

02 Planning + Design

2020 Actions • Finalize Rivers District Streetscape Guidelines • Work with City of Calgary to develop implementation strategy

Q4 2020

The Rivers District Streetscape Guidelines, currently in draft form, spring from a collection of design principles set out in the RDMP. By formalizing these as a stand-alone initiative, we will establish consistent principles that will give a distinct feel to east Victoria Park, bestowing on visitors a powerful sense of arrival and a captivating sense of place. CMLC 2020 BUSINESS PLAN • 43

ARTS COMMONS TRANSFORMATION

22.5 million to develop detailed design

Pending Procurement

2020 Actions • Initiate process to select project team consultants • Begin program validation and design work

Detailed design work in 2021 (full project TBD)

The Arts Commons Transformation project (currently unfunded) will add a new building and bring the existing facility up to modern design and construction standards. Phase One will involve construction of a new building—the Road House—consisting of a new black-box theatre, rehearsal space, lobby and support space. The Road House will house most Arts Commons events and community groups during Phase Two—renovation of the existing building. CMLC 2020 BUSINESS PLAN • 44 ENABLING WORK – FUTURE PROJECTS CMLC 2020 BUSINESS PLAN • 45

In 2020, we will continue enabling works on future infrastructure projects that the RDMP identifies as crucial for east Victoria Park. VICTORIA PARK TRANSIT CENTRE

5TH STREET UNDERPASS

RIVERWALK STAGE 2

ENVIRONMENTAL REMEDIATION

OTHER PROJECTS THAT SUPPORT DISTRICT IMPROVEMENTS, AS NEEDED CMLC 2020 BUSINESS PLAN • 46

CHAPTER TWO 02OUTSIDE THE RIVERS DISTRICT CMLC 2020 BUSINESS PLAN • 47

Our Business Strategy 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.

In 2016, City of Calgary extended our mandate to expand our community-building efforts beyond the Rivers District. We’re excited to bring the same passion, expertise and skillset to enhancing communities, adding value and stimulating further investment to other parts of the city. CMLC 2020 BUSINESS PLAN • 48

DAVID D. OUGHTON SITE

To be determined

RNDSQR, 546 Architecture, CivicWorks

2020 Actions • Initiate public engagement to solicit feedback from the community on the master plan concept • Complete draft master plan and advance project through regulatory approvals

2020 Outline plan submission and approvals

The David D. Oughton site is an 8.77-acre former school site in the culturally diverse neighbourhood of Albert Park/Radisson Heights. CMLC purchased the land from the City in 2018, and we are now repurposing it as a multi-generational residential development aimed at catalyzing further economic activity in this excellent location. CMLC 2020 BUSINESS PLAN • 49

SCHOOL OF ARCHITECTURE, PLANNING AND LANDSCAPE (SAPL) PARKING LOT DESIGN

50,000

U of C’s SAPL, Calgary Parking Authority

2020 Actions • Design, fabrication and installation

Q2 2020

In partnership with Calgary Parking Authority (CPA), CMLC is managing a SAPL project to creatively reimagine parking lot design and deliver CPA a new surface-level parking lot in Kensington. CMLC 2020 BUSINESS PLAN • 50

INGLEWOOD PARKING LOT DESIGN COMPETITION

230,000

Pending completion of RFP process

2020 Actions • Design, fabrication and installation

Q2 2020

In October, together with CPA, CMLC initiated a competition to select a designer for a new surface-level parking lot in Inglewood. Working with a selection committee, CMLC oversaw a two-step competitive process, first issuing an RFQ and then inviting a shortlist of candidates to submit RFPs. We will soon select the entry that best reimagines surface parking lot design, and they will work with CPA to deliver the new design in mid-2020. CMLC 2020 BUSINESS PLAN • 51

CALGARY FILM CENTRE LAND

To be determined

EXP, Calgary Film Centre, Gibbs Gage Architects, Calgary Economic Development

2020 Actions • Assess findings of market study to consider future options of site, including divestiture

2020

CMLC has completed an early market investigation of the development potential for a parcel of CMLC-owned land near the Calgary Film Centre at 5736 75th Avenue SE. Based on the findings, we continue to assess options for the land, including divestiture. The Calgary Film Centre has requested that CMLC look at options for parking and/or storage on this site. CMLC 2020 BUSINESS PLAN • 52

CHAPTER THREE 03CORPORATE OPERATIONS

CMLC 2020 BUSINESS PLAN • 54

MARKETING & COMMUNICATIONS

Operating as an ‘internal agency’, our marketing and Partner relationships communications team supports CMLC’s placemaking and project management work by spearheading • Nurture existing partnerships and forge new corporate communications, community engagement, ones to advance our initiatives, our story and brand marketing, and event planning and programming. our neighbourhoods.

The team’s priorities for 2020 directly support CMLC’s Private investment newly articulated strategic priorities (see page 23). • Identify and secure new investor partners Stakeholder and community engagement to advance our revitalization efforts and grow CRL revenue. • Strengthen community awareness of and support • Optimize use of Calgary Stampede lands for CMLC projects through ongoing, transparent while ensuring alignment with the RDMP. community consultation. • Engage diverse Calgarians with specialized knowledge Leadership in diverse to advise on our delivery of the vision for the Culture & Entertainment District as a measure that we are programming building places for people. • Stage diverse and original community events that foster meaningful partnerships Progress and profile and build community spirit.

• Raise the profile of CMLC projects (both envisioned • Prioritize community programming that and underway) through regular press releases, blog strengthens social, environmental and updates and social media posts. community resilience. • Develop a destination strategy and brand identity that raises awareness of east Victoria Park’s designation as Calgary’s Culture and Entertainment District. CMLC 2020 BUSINESS PLAN • 55

MANAGING THE COMMUNITY REVITALIZATION LEVY (CRL)

Designed to provide self-sustaining funding for Rivers In accordance with the CRL Regulation, CRL District redevelopment with no impact on the City of will terminate on the earliest of the following: Calgary’s operating and capital budgets, the CRL is CMLC’s main source of revenue. We’ve administered • At the end of a period of 40 years from the year in the CRL and received CRL revenue since 2008, using which the CRL Bylaw was approved by the Lieutenant 2007 property tax assessments in the Rivers District Governor in Council (December 31, 2047) as our baseline for measuring incremental increases • The date that all borrowings for the Rivers District in property tax revenues directly attributable to are repaid or recovered from the revenues associated CMLC’s efforts. with the Rivers District Community Revitalization Plan

By channeling any growth in property taxes spurred • An earlier date specified by the Lieutenant Governor by private investment into a fund for infrastructure in Council. improvements and placemaking initiatives, the CRL enables CMLC to repay funds borrowed to finance Calgary is still experiencing an oversupply of office redevelopment of public infrastructure within the space in the downtown core due to the depressed Rivers District. economy, which has driven down property assessment values city-wide. Our long-term development While many factors that influence CRL generation forecasts rely, in part, on long-range population and are beyond CMLC’s control, our team constantly employment growth forecasts for the city. We expect monitors changes in assessed values and tax rates for Calgary’s economy to continue to improve in the short existing properties and new development and, through term, which will influence our plans (and the pace of strategic planning and big-picture thinking, we explore implementation) over the longer term. If oil and gas ways to maximize CRL generation. These include the prices remain low, we may need to reconsider and volume and pace of new construction in the Rivers revise our development forecasts. District; the balance of residential and commercial development; the residential product mix; changes 20-year extension of the CRL in assessed values for existing properties; and new development and property tax rates. At the beginning 2019 the Province of Alberta approved a 20-year extension of the CRL legislation to December 31, 2047. The extension will help in our efforts to revitalize east Victoria Park and establish the public infrastructure and private development framework for the evolution of Calgary’s Culture and Entertainment District. CMLC 2020 BUSINESS PLAN • 56

CORPORATE SERVICES

1. Governance and Policy 2. Strategic Planning

CMLC’s Board of Directors continues to provide CMLC’s Board and staff are committed to bringing strong, committed leadership to the company, ongoing value to our shareholder and ultimately and a subcommittee of the Board provides specific the citizens of Calgary. CMLC continues to identify governance leadership. To further assist with and evaluate strategic opportunities outside governance, additional subcommittees focus the Rivers District. We offer a unique skill set on Compensation & Human Resources, Audit, and can apply the talents we used to stimulate and Environment, Health & Safety. redevelopment of East Village in other parts of Calgary. We have identified and discussed with our At an operational level, CMLC’s management shareholder a number of strategic opportunities continues to update corporate policies and our and redevelopment initiatives including the David D. employee manual as necessary. CMLC will continue Oughton School site and the Calgary Film Centre to operate in a transparent, timely, efficient manner lands. CMLC is evaluating potential development and in the best interest of our shareholder, the City scenarios for the Film Centre lands and will continue of Calgary. to advance the David D. Oughton School site in coordination with our partner RNDSQR. Corporate governance plays an important role in the way CMLC works with consultants and stakeholders to deliver all infrastructure projects, including the BMO expansion and event centre projects. To ensure the success of all projects, we must balance the needs and wishes of all key stakeholders with a strong governance plan.

CMLC will also work to formalize our corporate responsibility plan to ensure we exhibit consistent strong values throughout our operations. CMLC 2020 BUSINESS PLAN • 57

3. Administrative Operations 4. Enterprise Risk Management

A significant component of CMLC’s administrative CMLC’s Enterprise Risk Management (ERM) operations involves ongoing support of infrastructure program gives the organization a systematic delivery, development deals and all of our business approach to managing risk. The ERM program is units. We ensure our development partners adhere embedded in CMLC’s business activities to enhance to the master plan through the design process, effective project management, and it gives the and we assist them in the planning and permitting Board, the senior management team and the rest process with the City of Calgary when necessary. of the organization improved risk information to support strategic decision making. Other administrative operations include ongoing information technology support; overseeing all The ERM program gives us a platform and process building operations; corporate financial reporting to consistently identify and assess risks and a clearly and financial analysis; contracting and purchasing; defined risk governance structure with clear roles and risk management; ongoing review of CMLC’s internal responsibilities and clear alignment between strategic controls; and formalization of CMLC’s operating objectives and organizational risks. best practices. 5. Succession Planning CMLC management continues to develop a comprehensive human resources strategy. To effectively complete the projects approved by our shareholder, our organization must be nimble and responsive. Throughout 2020, we will continue to align the capacities of our team with our project needs. At the same time, we will take stock of the team’s skills, provide development opportunities, and structure our senior management team to lead the strategic direction of the company. Also, to ensure continuity in leadership, we will continue to work with our Compensation & Human Resources Committee to finalize our executive succession plan.

CMLC 2020 BUSINESS PLAN • 59

FINANCIAL STRATEGY

CMLC’s financial strategy for 2020 onwards represents 1. Community Revitalization Levy (CRL) a synthesis of plans and project information current to December 2019. The following financial analysis The CRL, which has appeared on the property tax bills addresses the five main aspects of our financial strategy: for Rivers District residents since 2008, continues to be CMLC’s primary source of revenue. The estimated 1. The Community Revitalization Levy (CRL) total CRL generation for 2020 is $37 million. 2. Project costs The projected CRL generation for 2020 is based 3. Debt financing on estimates of the projected tax rate increase for 4. Administrative costs 2020 and the actual 2019 assessment values for the Rivers District. 5. Alternative forms of financing Our method of estimating future CRL continues We have land sales expected to close in 2020, and we to be conservative. It is based on projecting future may contemplate further land acquisitions. We have not incremental property tax assessments resulting included these amounts in the cash flow projections as from new development in the Rivers District. the contracts may allow for the closings to be deferred. CMLC 2020 BUSINESS PLAN • 60

2. Project Costs Approved Project Costs

To the end of December 2019, CMLC has obtained approval from our shareholder, the City of Calgary, to undertake $1.3 billion in projects. The following table includes current budgets, estimated spend to December 2019 and planned spending for 2020:

3. Debt Financing

Estimated spend Estimated Approved to December 2020 budget 2019 spend PROJECT ($ millions) ($ millions) ($ millions)

East Village Infrastructure 133.0 5.0 3.0

BMO Centre Expansion 500.0 21.1 68.6

Event Centre 550.0 — 50.0

17th Avenue Extention 83.0 8.0 20.7

9th Avenue Parkade 52.6 21.0 26.4

Innovation Centre 19.4 6.5 9.8

9th Avenue Bridge 7.0 — 7.0

Cycle Tracks 3.0 1.6 1.4 CMLC 2020 BUSINESS PLAN • 61

New Projects

As part of the 2020 business plan, CMLC is • Environmental Remediation: As part of our requesting approval for funding allocations; ongoing work in east Victoria Park, we are seeking a budget appropriation of $15 million • BMO Expansion: CMLC will be part of the for environmental remediation. This project will project management team to help manage require approval for debenture financing through risk. We are requesting a capital appropriation the City of Calgary. Accordingly, the City will of up to $334 million towards the project. need to issue new borrowing and loan bylaws. • Event Centre: CMLC will be part of the project management team to help manage risk. We are requesting a capital appropriation of up to $275 million towards the project.

The City of Calgary has approved seven loan bylaws totaling $688.5 million. To the end of 2019, $292 million had been advanced against these loan bylaws. In 2020, we expect $60 million in advancements to fund ongoing project construction.

Estimated 2019 Projected 2020 DEBT COSTS ($) ($)

Interest Expenditures 7,531,000 8,900,000

Principal Repayments 24,608,000 27,000,000

TOTAL DEBT REPAYMENTS 32,139,000 35,900,000 CMLC 2020 BUSINESS PLAN • 62

4. Administrative Costs & Revenues

CMLC’s perennial objective is to prudently and efficiently manage administrative costs. Our administrative costs as a percentage of CRL earned during the year are steadily declining. In 2020, we will undertake a strategic budgeting exercise aimed at further reducing costs.

Estimated 2019 Projected 2020 ADMINISTRATION COSTS ($) ($)

Cost of Sales – Land Inventory 8,900,000 12,000,000

Site Servicing and Remediation 150,000 100,000

General Administration 6,874,000 7,500,000

Donations and Contributions 550,000 400,000

Repair and Maintenance – East Village 1,400,000 2,000,000

Amortization Expense 3,500,000 3,605,000

Interest – Debentures 7,531,000 8,900,000

Loan Administration Fees 535,000 650,000

Financing Charges 450,000 500,000

TOTAL ADMINISTRATION 29,890,000 35,655,000 CMLC 2020 BUSINESS PLAN • 63

INTEREST INCOME COST ESCALATION Interest income represents the funds earned CMLC is in a position to take advantage of the potential on cash balances or 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, CMLC will Rental income represents income earned from continue to monitor the industry and use existing best various land parcels and heritage building assets practices in contracting to minimize cost escalation owned by CMLC. on our current and future projects. OTHER INCOME This income is the fee earned to cover CMLC’s administrative costs when we complete project work on behalf of third parties.

Estimated 2019 Projected 2020 REVENUES ($) ($)

Community Revitalization Levy 34,000,000 37,000,000

Land Sales 7,200,000 15,000,000

Interest Income 25,000 15,000

Rental Income 1,484,000 1,500,000

Other Income 950,000 2,000,000

TOTAL REVENUE 43,659,000 55,515,000 CMLC 2020 BUSINESS PLAN • 64

5. Alternative Forms of Financing

DEBT FINANCING CONSULTING & ADMINISTRATION REVENUE CMLC’s current debt capacity is set at $26 million. We’ve been able to leverage our internal expertise This line of credit facility is with Alberta Treasury by providing consulting and project management Branch. It enables CMLC to seek and engage in services to other external stakeholders. We have been work outside the Rivers District. To date, we have approached by numerous potential partners to help $1.72 million in Letters of Credit being applied manage their projects—work for which we can charge against this line of credit facility. administration fees. These partners include Calgary Parking Authority, Calgary Housing Company and JOINT VENTURES Fort Calgary. We will continue to look at ways to To realize our long-term financial goals and expand expand this line of business in 2020 and beyond. our reach beyond the Rivers District, CMLC will seek to establish strategic, mutually beneficial joint venture RISK ASSESSMENT partnerships. Joint ventures will help CMLC engage CMLC continues to monitor the ever-changing in projects that will see our business grow faster, economic and market conditions that impact the increase productivity and generate profits. CMLC Calgary real estate and construction markets. can participate in joint ventures by contributing land, Consistent with prior years, if conditions warrant, professional expertise and cash. Establishing joint CMLC will quickly reassess our position in relation ventures will allow us to maximize project impact to our financial model and make any necessary through combined resources, shared risks and costs, adjustments. Given the conservative nature of and access to greater resources (including specialized our planning, we currently anticipate no need staff). Joint ventures will also give us access to for adjustments. CMLC continues to live within inexpensive forms of financing that would otherwise its means and operate conservatively with the be unavailable. projects we undertake.

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.

In 2020 CMLC will work with RNDSQR to establish a joint venture partnership to work on developing the David D. Oughton School site. Calgary Municipal Land Corporation 430 8th Avenue SE Calgary, Alberta T2G 0L7 Telephone 403.718.0300 calgarymlc.ca