Calgary City Council formally approved the wind down of the Phase 1 of the Green Line LRT project, from Lynnwood/Millican in the southeast to Eau Claire.
After receiving project approval from Council in July, the withdrawal of financial support by the Alberta government earlier this month while they consider an alternate scope and alignment for a future LRT project to the southeast rendered this decision inevitable, according to a statement released by the Green Line LRT Board of Directors.
“This is because at this stage of the project, with 60 per cent design completed and construction underway, the almost 1,000 staff, consultants and contractors, the current procurement, the more than 70 negotiated contracts and current construction are directly tied to the previously approved alignment.
Rooted in the assumption that a Green Line LRT will be built in the future, the project wind down will take place over the next few months and will focus on our people and four key principles – safety, cost and risk mitigation, value preservation and efficiency and effectiveness. The Green Line Board will oversee the wind down and ensure that all contractual obligations are fulfilled or transferred to the City by December 31, 2024.
Active construction in the Downtown will be completed this fall and work will continue on the 78 Avenue Project in the community of Ogden through to the end of November 2024, when it will be substantially complete. Outstanding work will be transferred to the City to conclude by July 2025. All other contractual obligations will be negotiated in the months ahead.
In a statement posted to social media, Alberta’s Minister of Transportation and Economic Corridors Devin Dreeshen called council’s decision “unfortunate” and noted that the province would not cover any costs to wind down the project.
“Regarding wind-down costs, I don’t see why Alberta taxpayers should be asked to pay for decade-long mismanagement and decisions of past mayors and city council,” his statement read. “Further, the city is more than welcome to proceed with the project without provincial funding should they insist that the cost of the wind-down is more costly than the committed provincial contribution.”
Dreeshen went on to state that the provincial contribution remains on the table if the city “changes its mind.”
“By December, a new alternative route that extends further into southeast Calgary will be provided by the province to City Council for their consideration. When it is ready, we will be happy to talk to the City and discuss with them whether or not to proceed.”
With $1.3B spent since 2017, including $650 million prior to project approval in 2021, terminating and winding down an active construction project of this scale is without prior transit precedent.
“While a full assessment of risk is ongoing, the Green Line Board anticipates that total wind down costs, including forecasted direct expenditures and risk allowance will exceed $800M. The City’s investment in overdue transit infrastructure will now be directed to these costs,” explained the Board.
“For the past decade, Calgarians have been strong advocates of the Green Line LRT ensuring that decision makers understood the expectations and opportunities for communities along the alignment. You shaped this city-building project and by remaining as vocal champions your input will continue to guide future Green Line decisions and decision makers.”
Featured image: (City of Calgary)
