Alberta budget throws Edmonton's Valley Line West LRT into doubt

Disappointment with the provincial budget continues to permeateEdmonton city hall as details from the Alberta government's legislation are unveiled.

The latest concern forAlberta's two biggest cities is the UCP government's 90-day withdrawal clause on LRT funding agreement, casting uncertainty around the future Valley Line West LRT, a 14-kilometre link between downtown and Lewis Farms.

The clause, included in Bill 20 introduced by Finance Minister Travis ToewsMonday,would allow thegovernment to withdrawpromised funds to Edmonton or Calgary public transit projects with 90 days' notice, and without cause.

Earlier this week, Transportation Minister Ric McIver said the clause is standardin contract agreements made by the Alberta government.

But Mayor Don Iveson said Thursday he's concerned thegovernment could pull the money at any time.

"It's an unacceptable level of uncertainty, really," Iveson said in a media availability. "And that creates cascading uncertainty."

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Construction workers, companies looking to bid on the project, and investors in transit-oriented housing and commercial developments along the line will be affected, he suggested.

He pointed to a parcel of land on Stony Plain Road and 149th Street slated for a significant rezoning as an example of a development that could be jeopardy.

"I don't know what to tell those investors right now," Iveson said. "At a time when we're trying to attract investment, that's not helpful."

A spokesperson from the Ministry of Transportation said the termination clause in Bill 20 is standard.

"Bill 20 includes a standard termination clause, both for Calgary's project and in anticipation of an Edmonton agreement, in order to ensure consistency with Government of Canada's agreement,"press secretaryBrooklyn Elhardsaid in an email.

The previous NDPgovernment had pledged $1.04 billion for the Valley Line West LRT.The city has already spent more than $200 million on the design, route work, land acquisition and putting the projectto tender.

News of the 90-day clause comes on top of cuts in infrastructure funding to cities and towns, announced in the government'sinitial budget address last Thursday.

Thegovernment plans to reducethe Municipal Sustainability Initiative, or MSI, by $236 million between 2020 and 2022.

It also plans to repeal the city charters for Edmonton and Calgary, reducing their base spending by $45 million a year.

For Edmonton, the cuts could translate into delays or cancelled projects such as the Terwillegar Expressway, upgrades to the Stadium LRT station, 50th Street park and ride design and other improvements to transit.

Council is faced with tough decisions in the coming weeks as it re-evaluates its own capital and operating budgets for 2020 to 2022.

Councillors willstart reviewing the budget and project options on Tuesday.

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Iveson said he'll be looking for clarity from Municipal Affairs Minister Kaycee Madu on the legislation and a "reset" of the relationship between the city and the province.

"We need some of these legislative hurdles addressed because right now they're undermining that confidence," Iveson said.

He said he still thinks Valley Line WestLRT is possible.

The total cost for the west leg of the Valley Line LRT is estimated at $2.7 billion, including land costs. The southeast portion, linking downtown to Mill Woods, is under construction.

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