lemongrab
Active Member
Are we sure that two contracts wouldn't have worked out even worse? Maybe some more smarter people can elucidate the process, but would it have been something like:I think it's a safe bet the UCP gives this the thumbs up and the Feds rubber stamp whatever business case is sent to them.
The ultimate irony of course is that splitting the construction at 4th St into two procurement contracts was the plan back in 2019 and the UCP blocked it with their review and insistence that procurement be done in 1 large contract. Now we're back to doing the same thing Council wanted to do in 2019 but with the SE leg opening in 2031 instead of 2026.
South procurement more/less successful; DT procurement fails. So they have to find a lot more money, trim the DT wherever possible, and probably go back to South procurement for substantial VE - but from a much weaker position to negotiate that. The Lynnwood stub option would probably have been impossible (not that that's a bad thing!)
So we'd probably end up in a similar spot with DT in limbo and the south going ahead, but without a convenient scapegoat...so you might even say the UCP has done the city a favour in a weird/twisted way.
This is certainly true, but there is a limit to where that becomes impractical and risky. At a certain point you risk the ability to borrow at competitive rates while those assets generate greater returns. Based on CFO Male's dismissal, I fear we are already on that brink. For projects with a certain ROI it might still be worth it - for instance if you were to convert a bus a minute on Centre St to a fully automated train the overall business case might justify it...but for this GL starting point that just means a lot more OPEX and CAPEX to come...It was ever thus. And the fiscal capacity argument is wrong. Calgary's fiscal capacity is set solely by Councillors. Calgary also has a boat load of money in reserves, in theory to pay for things like cost overruns.