Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Edmonton Journal

20 hours ago

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City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG).
The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core.
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Two motions on the table
The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL.
If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision.
A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments.
OEG projects at the centre of dispute
The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package.
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While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community.
Supporters urge action
Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away.
Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown.
'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.'
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Similar support came from Beryl Bacchus, executive director of iHuman Youth Society, who highlighted the impact spaces like the Winspear Centre have on at-risk youth.
'It is more than a concert hall. It's a gateway to connection, culture and understanding,' she said. 'Being a friendly neighbour means more than just sharing space. It means opening doors for young people from marginalized, computed communities.'
Viet Nguyen, founder of Boodang Music Canada, said Downtown Edmonton's lack of flexible outdoor event spaces is frustrating 'not just for us, but for the hotels, restaurants and shops that depend on those thousands of visitors.'
'On a festival weekend, we bring up to 7,000 to 10,000 people a day. That kind of foot traffic is rare in most Canadian cities outside of Toronto or Vancouver, and it makes a tangible difference,' he told council. 'So saying no to investment isn't a strategy.'
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Cheryll Watson, chairwoman of the Downtown Revitalization Coalition, echoed that sentiment, urging council to rise above ideology.
'Unfortunately, the majority of the speakers opposed to this decision have not had the benefit of being educated about how this proven investment mechanism works,' she said. 'What we need from council right now is not ideology, but sound investment judgment.'
What the CRL has funded so far
Created in 2015, the CRL allows the city to borrow against projected increases in property taxes in a defined area to help fund strategic redevelopment. The current CRL is set to expire in 2034. The proposed 10-year extension would push that to 2044, allowing the city to finance new 'catalyst' projects and finish existing ones.
City administration said the CRL has already helped drive more than $4.7 billion in private investment Downtown, including three new office towers and thousands of residential units. But with construction costs rising and post-pandemic recovery stalling, officials argue additional investment is needed to maintain momentum.
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However, councillors including Andrew Knack and Michael Janz have previously pushed back against the inclusion of the OEG projects, questioning whether public funds should be used to support private developments linked to a billion-dollar company.
That's the heart of the current motion — to determine whether the province's support is conditional on the full slate of projects or, if some, like the OEG developments, could be removed without sinking the deal.
Previously, administration cautioned that changing the project list could restart the entire provincial approval process, potentially delaying implementation and putting the extension at risk. Kalen Anderson of BILD Edmonton Metro told council on Thursday that the deal 'is a package. Picking and choosing pieces could cost us the whole thing.'
Awaiting further clarification
The province has already amended regulations to extend the CRL through 2044 and updated its guidelines to allow for the inclusion of the new projects. However, no formal statement has been made on whether all the projects listed in Schedule A must remain intact.
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