Why Smith says there was no money to revitalize downtown Calgary in Budget 2023

Alberta Premier Danielle Smith says Calgary Mayor Jyoti Gondek did not provide a "priority list" with her asks for Budget 2023.

"It just so happens that we didn't receive a priority list from the City of Calgary," said Smith Monday. 

Smith said the number one priority from both Edmonton and Calgary was public safety, a key component that was delivered on in the budget, according to the premier. 

"I'm looking forward to meeting with Mayor Gondek to find out what her priorities are, and I hope we'll be able to come to a conclusion on that," Smith said.

Smith and her UCP government faced criticism in wake of the budget being released for focusing zero money in revitalization efforts of the downtown core. 

She says investing in converting vacant office buildings into residential housing is not feasible. 

"For me to explain why I would give $100 million to a Toronto-based (real estate investment trust) so that they can renovate their building, I accept that that's a bit of a complicated argument to be made," Smith said. 

"All the minister said is' show me the business case for that,' because when we took a look at it, that's what we determined where the money would be going."

In a five-page draft letter from Oct. 6, 2022, posted to the city’s website, Mayor Gondek lays out several asks of the UCP government ahead of the 2023 Budget. 

The letter would have been written prior to Smith being elected as UCP leader, sworn in as premier and winning her seat in a by-election as MLA. 

In the letter, Gondek says funding is needed to revitalize the downtown core.

"Since the economic downturn in 2015, Calgary has navigated a significant set of challenges," the letter reads. 

"This includes the erosion of the downtown core through substantial vacancies and assessment value forcing a shift in property taxes, to the challenges brought by COVID-19. The city has worked tirelessly to ensure Calgary remains a business-friendly environment and a great place to live, work, grow and raise a family."

"The city seeks additional funding from the Government of Alberta through a short-term change to the percentage of property tax contributions until the revitalization work begins to yield significant results." 

Gondek also asked for funding to support Calgary’s Greater Downtown Plan, which was launched in 2021 and will reinvent the core over ten years. 

"We are making progress toward our goal of removing six million square feet of vacant office space from the downtown over a 10-year period (2021-2031). A total estimated investment of $450 million is required to achieve this goal. This program, of which $100 million of our initial investment is earmarked for, has received significantly higher interest than anticipated," said Gondek. 

"Phase 1 will remove roughly 665,000 square feet of vacant office space and replace it with approximately 700 new residential units."

Other asks included money for affordable housing, continued funded for low income transit pass and infrastructure. 

Calgary’s Downtown Business Association says it was stunned not to see any money in the budget. 

"Not having any dollars in this year’s budget is a surprise to us," said executive director Mark Garner. 

"We’re seeing a recovery in process and now’s a good time to put additional investments into good use."

Alberta’s NDP committed last year, if elected in May, more than $150 million will be invested into Calgary’s core. 

On Monday, Alberta NDP Municipal Affairs Critic Joe Ceci issued the following statement:

"Twenty-one UCP MLAs in Calgary and they couldn’t deliver one cent to help with the critical work of revitalizing Calgary’s downtown."

"Calgary Chamber of Commerce President Deborah Yedlin rightfully called this failure insulting.

"Danielle Smith also funded just one new school for Calgary despite projections of 8,000 new students walking through the doors of public schools this fall. 

"Smith has continued to ignore Calgary over and over — she’s even admitted that she has little interest in supporting our vibrant and growing city."

Mayor Godnek’s office did not respond to request for comment Monday, but she’s expected to address reporters Tuesday afternoon.