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This is what the Jim Gray group has been pitching and given that the premier and minister have been parroting the Jim Gray group's talking points almost verbatim, my guess is this is what the province is going to deliver.
It will be a South East LRT that dead-ends at an elevated station behind city hall, forcing the vast majority of the 600 or so people who can fit on a 2 car train to head down the escalators, walk over to the City Hall station and try to cram themselves on the Red/Blue line trains that are entering downtown already full to get themselves to where they actually want to go which is 4 St SW and 7th Ave according to the City of Calgary's early Green Line work that tried to pinpoint where the highest concentration of jobs were downtown.
In the afternoons, the reverse will be true as those 600 people ride the free fare zone to City Hall to catch their SE LRT train back to the 'burbs but of course those are now 600 spots not available on a red or blue line train to the people who actually want to ride those trains meaning those trains will be departing City Hall station fairly empty with tons of potential riders stranded at other downtown stations.
So ya, looks great as a quick and easy way to save money when sketched out on a map, but I think it will be an absolute disaster for transit operations. Plus, of course, it also kills the concept of a connected SE-NC LRT