Phase 1 Council decision

On July 30, Calgary City Council approved a revised Green Line Phase 1 project scope, capital funding request and delivery model, as recommended by the Green Line Board, to ensure construction can begin while responsibly addressing the cost inflation that is impacting all major infrastructure projects across North America.

Green Line main construction for Phase 1 will now begin by building the core from Lynnwood/Millican in the southeast to Eau Claire downtown, connecting into the existing Red and Blue LRT lines. Construction of the remainder of the Council-approved Phase 1 south to Shepard, as well as any future extensions north or south, will proceed when additional funding is in place. This decision will allow for new Bus Rapid Transit (BRT) and bus service in the southeast to provide connections into the LRT, contributing to the projected opening day ridership of approximately 32,000 Calgarians. 

As a result, the key changes being made to Phase 1 of the Green Line are:

The City is regarded as one of North America’s best places to live, visit and do business. It is one of Canada’s largest cultural and economic centres and has undergone significant population and employment growth over the previous decades, with the population forecasted to double by 2076. Investment in public transit is essential to maintaining a high quality of life, a prosperous and competitive economic advantage, and a sustainable environment.

Building the core of Green Line will bring many benefits:

• Expand the Rapid Transit Network, increase ridership and reduce congestion on roads and existing transit service. 
• Spur residential and commercial development. 
• Improve accessibility around the city, making it easier for people to access jobs, services and communities. 
• Reduce greenhouse gases. 
• Create new jobs and attract companies and workers to our city. 

More than 90 per cent of Calgarians have expressed confidence that Green Line supports our future growth, improves mobility for underserved communities and will be a catalyst for economic development.

Improves Mobility Choices
Providing fast, frequent and reliable transit service that connects communities, employment hubs and key destinations on the Calgary Transit system with almost 32,000 riders a day on opening day.

Catalyzes Housing Development
A key benefit of the Green Line LRT is creating high quality transit connections between communities and areas targeted for development in southeast Calgary. Strong population growth is eroding housing affordability and building the core of Green Line creates opportunities to construct 70,000 new housing units, many multi-family buildings, within 800 metres of stations and other transit-oriented development.

The City of Calgary is investing an additional $705 million to build the core of the Green Line LRT, which will deliver the best long-term benefits possible for Calgarians with the available City funding. This investment offsets inflationary pressures experienced by similar projects across Canada. It will enrich the lives of Calgarians and will be factored into City Administration’s recommended adjustments to the Service Plan and Budgets later this September.

This will bring the total Green Line capital costs to $5.797 billion, plus related financing costs of $451 million, for a total capital budget for the Project of $6.248 billion.

Costs
Building the Core Phase 1 Project Budget: $6.248 billion
Previously approved Green Line Capital budget: $4.903 billion
Funding Partner Commitments:

• Government of Canada: $1.641 billion 
• Government of Alberta: $1.792 billion 
• The City of Calgary: $2.200 billion 

Additional City investment required: $705 million

Population Growth
Calgary is the fastest growing city in Canada. Approximately 75,000 new residents in 2023 brought our metro population to 1,422,000*. The six per cent growth rate and forecast of 4.9 per cent growth in 2024 represent the most significant annual increases in Calgary’s population since the 1980s.
*Statistics Canada 

For many years it has been the plan to build the Green Line LRT in phases and it makes sense now with cost pressures impacting all infrastructure projects as well as the financial constraints and competing priorities of the three government funding partners. To deliver Building the Core for Phase 1 of Green Line every aspect of the budget, project scope and delivery model were assessed.

Economic Environment
The market to develop infrastructure projects in North America is highly competitive with challenges from inflation, supply chain constraints, material shortages and a lack of experienced project managers and skilled labour. In Q1 2024, The City’s Corporate Risk Report warned inflation was leading to cost increases on capital projects.

Board Expertise
The Green Line Board of Directors was appointed by City Council in January 2021. It is comprised of Calgarians with expertise delivering major infrastructure projects including governance, leadership, procurement, engineering design, construction, project management, urban design and P3 (public-private partnership) transactions.

With a mandate to advance Phase 1 of the Green Line to connect the southeast to downtown and into the existing Red and Blue LRT Lines, the Board is committed to managing costs and risks while balancing community expectations and citybuilding opportunities. The changes in the Building the Core submission are outside the Board’s mandate and need to be approved by Council.

Contracting Strategy
The Design-Build-Finance contracting strategy that Council approved in 2018 occurred in a completely different economic environment. As bids for work in 2023 came in higher than forecasted, it was decided a move to a multi-contracting strategy that aligns with the current market dynamics and is better to manage risk and costs. The change will save approximately $600 million and allow Green Line to execute contracts on individually negotiated scopes of work.

Due Diligence
The cost to construct Phase 1 has been negotiated and through each step of negotiations, the positions taken by contractors have been vetted through extensive due diligence led by the Board and Green Line Program Team supported by CSIX, a consortium of third-party firms. CSIX includes AtkinsRéalis, Aldea Services, Altus Group, Mott MacDonald and Turner & Townsend.

Value Engineering and Design Enhancements
Value engineering and design enhancements have created approximately $400 million in savings. It includes updated design and layout optimization of the Maintenance and Storage Facility, adjustments to station elevation, opting for a two-car train design and the use of ballast on guideways and bridges.

Delivering on other City of Calgary Plans

• RouteAhead 30-year Strategic Plan for Transit in Calgary 
• Municipal Development Plan 
• Calgary Transportation Plan 
• Calgary in the New Economy Economic Strategy 
• Greater Downtown Plan 
• Housing Strategy 
• 2020 Sustainability Direction and Council Priorities 

Regional Rail Master Plan
Green Line is a city-building project long overdue with local and regional benefits to address growth pressures in what was the fastest growing city in Canada. Altering the 4 Street S.E. Station near Stampede Park, the BMO Convention Centre and future Scotia Place to a street-level design better facilitates a transit hub to connect with potential future links to YYC Calgary International Airport or the Province of Alberta’s Regional Rail Master Plan.