Where’s the Money Going?

Alright. Are you ready to talk about a community revitalization levy or two? I know; they sound tedious, and they kind of are. But they’re also important.

The City of Edmonton has entered three community revitalization levy (CLR) projects with the province. They include the Capital City Downtown CRL, the Quarters Downtown CRL and the Belvedere CRL. Here’s how they work: Similar to other projects that rely on debt financing, the province lends the city money at a good interest rate — in the range of four per cent — that the city then uses to fund projects in specific neighbourhoods. The idea is that those improvements will lead the private sector to invest in the area: a new condo tower, perhaps, or a large event park. Though not an additional tax, those investments increase the city’s property tax base, and the increased revenue is used to pay back the loan. If a community revitalization levy goes well, the city comes out ahead. If it doesn’t, it will have to be paid back from general revenues.

The Downtown CRL, which city council recently voted to extend until 2044, is the most significant of the three. The city reports that, since coming into effect in 2015, the Downtown CRL has funded more than $545 million of infrastructure and community improvements, and that it has contributed to more than $4.8 billion in private and public development, including Rogers Place, the casino, the Stantec and Edmonton towers, and much more besides.

It sounds good, but even then there’s a problem of lost opportunity. There’s no doubt that Ice District is rocking when there’s an Oilers game or another event at Rogers Place, but what about when there’s not? Could that money have been used to spread the benefits around to more businesses in a larger area?

I called Mayor Andrew Knack to get his perspective. He opposed the Downtown CRL even before he was on council, not because he’s opposed to community revitalization levies as a rule but because he didn’t like that so much of the benefit from the investment went to a single company, in this case Oilers Entertainment Group.

“It feels like we put a lot of our eggs in the event-space basket, versus the 24-7-vibrancy basket,” he says. “There is other work we could be doing that would have a broader benefit across the entirety of downtown.”

He cites the 1.8-hectare, $46.8-million O-day’min Park as the shining example of how a community revitalization levy can be used effectively. The park, which opened last November, is busy, even in winter. He credits the space with encouraging 1,600 new permits for nearby residential units. “That is a great example of something very tangible that had a huge impact and will further contribute to the work needed to bring more people to live downtown,” he says.

But such deals come with risk. The other two such levies have not performed as well. The Quarters CRL, for instance, is seeing some positive returns, but the latest report from the city shows a shortfall of $63.6 million projected over the 20-year term, with five years remaining.

Knack remains convinced that community revitalization levies are good tools when used wisely, but once again a lot of the investment from the Downtown CRL extension will benefit Oilers Entertainment Group, with money going towards a public event park beside Rogers Place and infrastructure improvements to allow a potential 2,500 new housing units north of Ice District. He would rather see money go into housing options beyond Ice District and to smaller projects that help small businesses — creating the streetscapes and connectivity that bring more people, including families, to live downtown. The 24-7 vibrancy downtown so desperately needs. But CRL funding is reserved for only those projects specified in the plan.

Beyond that, Knack wants to see Edmonton get its due when compared to our southern neighbour. “Calgary received $330 million for their downtown arena and entertainment space; we have received about $180 million, so we’re still
$150 million short,” he says. “That’s where I would like to focus my advocacy efforts, and then use that money to help advance some of the other things we could do.”

This article appears in the October 2026 issue of Edify