Calgary City Council has voted to eliminate six stations from Phase 1 of the Green Line LRT megaproject and increase the budget to over $6.2 billion.

The proposed new line would run from Eau Claire to Lynnwood/Millican instead of Eau Claire to Shepard, making it much shorter than originally planned.

A new maintenance and storage facility will be built at Highfield station. The rest of the Southeast Line – including Ogden, South Hill, Quarry Park, Douglas Glen and Shepard stations – will be upgraded as more funding becomes available.

Council also voted to convert Fourth Street SE from an underground station to an above-ground stop to allow integration with the province’s proposal for a future passenger rail system.

And the full expansion of the planned Centre Street subway station in the Beltline is being postponed.

The project’s budget has ballooned after the City Council approved a $700 million cost increase (compared to the previously reported $5.5 billion).

To make up the difference, the city will draw on several sources, including projected tax growth and 75 percent of future operating savings, with $208 million to be drawn from a city reserve fund.

Not what Calgary residents expected, say city councillors

The decisions were made after a day of closed meetings between members of the board that oversees the Green Line, the city council and the administration.

The Green Line Board recommended changes to the scope of the project itself, while the city’s Chief Financial Officer proposed budget adjustments on behalf of the administration.

“Today’s decision comes over a decade ago and sets Calgary up for success in the years to come, especially at a time when we are the fastest growing city in the country,” said Mayor Jyoti Gondek.

A map shows the modified Phase 1 of the Green Line LRT. (City of Calgary)

“The Green Line is a critical part of the transportation infrastructure and shows that all three levels of government are committed to working together and cooperating to advance megaprojects.”

During the public meeting, councilors debated the merits of finally moving forward with a project that has been in the works for a decade, albeit on a much smaller scale and with a higher price tag.

“The people of Calgary are going to be disappointed. I think some may even feel cheated,” said City Councillor Sonya Sharp.

“We’re paying a lot more for a lot less and eating into our future savings. … I’m not against the Green Line, but I would have liked to see the money used for a section of the line that would connect to the Red and Blue Lines and better serve the South.”

Councillor Courtney Walcott said councillors could be proud to have made progress on the project despite the change in objectives.

“Is it the full line? No. Is it where we wanted it to be in full? Absolutely not,” he said.

“This is a moment where we had an opportunity to just say we need to get these tracks in the ground. We need to start building this train so we can keep building.”

Ultimately, council members voted 10-5 in favor of the changes to the project, with council members Sonya Sharp, Dan McLean, Jennifer Wyness, Sean Chu and Andre Chabot voting against.

Only with the city center can funding from the federal government be maintained

In a later press conference, Green Line chief executive Don Fairbairn said the changes to the project were the “most cost-effective option” given the rising cost of goods and services.

“We have decided to recommend a phased approach that could be funded through existing commitments from core partners, our federal and provincial partners,” Fairbairn said.

He added that the decision to start with the downtown section of the line was the best option to support future extensions to the north and south while ensuring connectivity to the already existing red and blue lines.

Gondek said the changed vision for Phase 1 of the Green Line is the only way to move the project forward while meeting minimum criteria for federal and provincial funding through the Investing in Canada Infrastructure Program (ICIP).

In a July 26 letter to Gondek, Sean Fraser, the federal minister of housing, infrastructure and communities, said Ottawa would need to review any changes to the project to ensure it remains eligible for funding under ICIP. The project had previously been approved for up to $1.5 billion in funding from the reserve.

“From the federal government’s perspective, changing the scope and recommitting full funding to the project would require disclosure of all project details so that we can ensure that the scaled-down project continues to meet the objectives of the ICIP,” the letter said.

“In order to make this decision, a new business case must be submitted and evaluated by our Treasury Board.”

Fraser said the business case must be submitted to his department by August 15.

Construction of the Green Line is scheduled to begin this fall.