Shane Keating- Ward 12: SETWAY Funding

Part of the reason for public support of transportation projects is that they have benefits across the entire local, regional, and national economies. The benefits are widespread and include employment opportunities, less strain on city infrastructure in and around the downtown core, improved transit accessibility and convenience, reduced congestion and travel times, more efficient movement of goods, reduced carbon emissions, and increased property values. As you can see, it is easy to argue the benefits of improved transportation.

However, continuously increasing property taxes to fund the City’s share of transit projects, particularly for major capital investments is becoming less and less practical. This is not unique in that many other jurisdictions in Canada are searching for new public transportation options. The following outlines alternative funding options that can be used in combination with each other and at different stages of SETWAY. A number of these options will require support from all three levels of government.

CRL – Community Revitalization Levy

The City borrows money to pay for the construction of SETWAY or a segment of it. Once built, the project attracts and increases local activity, investment and development. Property values rise creating additional tax revenue for the City and Provincial government. The City uses the growth in taxes to pay back the borrowed funds. Only the tax growth within a specified boundary is dedicated, leaving taxes from other areas of the City unaffected. The CRL is limited to a fixed term of 20 years in length. Once complete, the taxes dedicated to the CRL return to civic and provincial general revenues. This leaves the City and Province in a better position.

GreenTRIP Funding

GreenTrip provides capital funding to a wide range of sustainable public transit projects in Alberta in an attempt to help increase ridership and reduce traffic congestion. RouteAhead and Investing in Mobility have recommended that the City dedicate $115 million in GreenTrip funding to SETWAY.

CMLC (Calgary Municipal land Corporation)

Use funding from CMLC to fund infrastructure from 2^nd avenue to the river.

Remington has already dedicated $1 million for SETWAY. Several other developers have expressed interest also.

BOOT (Build Own Operate Transfer)

BOOT is a financial arrangement wherein a private company designs and builds a transit project or facility at little or no cost to the City, and owns and operates the facility as a business for a specified amount of time with the prime goal of recovering the costs of investment and maintenance. Once the contract has reached maturity, the private company transfers the asset to the City. Some advantages of BOOT projects include the transfer of technology and know-how, completing projects within a tight budget and short time frame, and it releases the burden on the public budget for building infrastructure. The Federal Government has expressed interest in using this as a funding method for SETWAY.

Building Canada / P3’s

The PPP Canada Fund and Project Development Fund are cost-sharing programs that work with lower levels of government to promote the effective use of Public – Private Partnerships. PPP Canada gives priority to infrastructure projects that promote jobs and economic growth in the transportation sector.

Private Sector Investment

Many Private sector companies and developers have expressed interest in SETWAY and its development. Support could come in the form of monetary investment or the donation of land.