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Calgary

Forget the Horizon, Downtown Calgary is in Big Trouble Right Now

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10 minute read

Calgary Downtown Empty

Do you travel through or live in downtown Calgary? 

Do you glare at our skyscrapers and see only a few lights on? 

This is a tale of a cowtown that stopped producing milk, even our ranch has closed. If there was a light at the end of this tunnel, not even our top economic spokespeople can offer any of us a realistic answer for where we are at now, or when we will even see the light. The economic destruction from COVID-19 continues to ravage the health of local businesses and almost every other industry that calls our city home. With that, there is a lot more to the story that reaches beyond March of this year. The question is, what does a pillar city in Canada do when their downtown is empty and graduates continue to emigrate?

Recent data from the CBRE from Q3 of 2020 show the office vacancy in downtown Calgary has hit 28.7%. That number may seem irrelevant without comparison to other metropolitan places in the country. The chart below shows the office vacancy percentages based on data collected of unused office space by square footage in the downtown core in each identified city.

Calgary office vacancy

Data Sourced: CBRE, “Canada’s Office and Industrial Quarterly Statistics Q3 2020”, CBRE.ca

The clarification we are lacking is that there is a very real problem with attracting commercial activity. The challenge lies within the lack of large firms that have more than 1,000 employees to fill these empty sky-high office buildings.

We cannot simply just ask companies to move their workforce, an example being Suncor’s recent decision to uproot 700 employees from Ontario to relocate to Calgary. Better described as 700 humans with families, friends and communities in Ontario. No figures have been released to state how many jobs will be coming to Calgary. 

Almost within the same week, we see the consolidation of Husky Energy by Cenovus. This does make “fiscal” sense for the financial health and future of the company, becoming the third-largest oil and natural gas producer in the country. Citing a piece in the Financial Post by Diane Francis, Cenovus will close the Husky head office in Calgary, which is not reflected in the Q3 data released by the CBRE. 

If we keep in mind that the headquarters for Husky Energy Inc was Western Canada Place, where we saw the Apache Corporation “strategically exit” Canada back in 2017. It will become clear in the near future that we could see another tenant evacuation of a huge building in downtown Calgary. 

One piece of that 28.7% of our current office vacancy is due to Nexen leaving their building on 8th street completely vacant, setting up shop in the same building as the newly purchased Husky Energy Inc. In this case, bottom level retail such as cafe’s are not included as occupied office space. 

If there are corporate tax incentives in almost every major city in the efforts of attracting big business, therein lies the question. What else can Calgary offer to sway large firms to come here? Take a look at the chart below stating the 2020 Corporate Income Tax Rates in Canada.

2020 Canadian Corporate Tax Rates

Source: TaxTips, “2020 Corporate Income Tax Rates”, Taxtips.ca

At some point in the recent history of Alberta, competitiveness turned into desperation. There is some benefit to local entrepreneurs looking to set up a business by lowering the barrier to entry, however, have we really seen that as a result of the lowest corporate tax rates in the country? 

Looking at the fact sheet prepared by Calgary Economic Development in May of this year. As shown in the chart below, take a look at the new and renewed business licenses. It is crucial to note that COVID-19 has created a mountain of economic problems for almost every city, which we can assume had a major impact on the 2020 numbers seen below. We may see this continuing to decline as the pandemic continues to ravage our economy.

In addition, It is important to note the lack of new business licenses issued since 2017. This is not a new problem but has been exacerbated by COVID-19.

Business Licenses Calgary

Calgary Economic Development, “Fact Sheet: Calgary Small Business”, 2020 Edition Published: June 24, 2020, p 6., Calgaryeconomicdevelopment.ca

When faced with a challenge, Calgarians do not quit. The piece of the puzzle that has yet to be found is to restore incentive to local and foreign investment. The ideology that big tech would eventually be “sold” on Calgary’s infrastructure has not gained traction. 

Recent history teaches us that big tech follows big tech, an example being TikTok opening a new headquarters in Dublin back in August of this year, where companies such as Alphabet, Amazon, eBay, Paypal and Facebook also have European headquarters. While these names are well-known globally, the economic and sociological effect it could have on our city would offer Calgarians some indication that we are actually progressing in some way. 

Consider being a graduate enrolled in an extensive and expensive program this year. The lack of economic progress is tied with the lack of jobs in a psychologically destructive way. If we cannot incentivize foreign investment and create new job opportunities, more importantly, how do we hold on to waves of eager graduates that are well aware of the benefits of moving to other cities or countries? 

The narrative that new graduates carrying thousands of dollars in debt are given any chance to achieve anything close to previous generations in Calgary back in the high oil and gas days is now an irrelevant argument. Understandable that they may pack up and leave for greener pastures.

The evidence is in the 2019 Calgary Civic Census. The age demographic of 20-24 is our second lowest age demographic sitting at 5.94%, the lowest being the 15-19 year olds sitting at only 5.28%. The chart below shows the breakdown of our Calgary’s age segmentation. 

Calgary young people leaving

Source: Calgary Civic Census 2019, “Civic Census Results 2019”, Calgary.ca

Cities such as Vancouver and Toronto last conducted their population census in 2016. The comparison data ranked Calgary 29th out of 35 cities in Canada for the age demographic of 20-24. Thinking about the cities you are aware of in Canada, to not even rank in the top 10 for young adults adds to the enormous problem we will be attempting to remedy for an unknown amount of time. This data can be seen clearly in a CBC post relating to this issue.

The information above may offer some real data that has very real implications. However, the narrative less documented is what sentiment do young people feel in Calgary and what is left to be proud of. It cannot just be the Stampede or nothing at all. Even after emigrating to another city or country, what is it that they tell their newfound community about their home city? The vibrant, creative and hard-working young people in this city have a fighting chance, but only if there is some benefit to their future staying here. Without awareness of foundational values, celebration of culture and real opportunity to rely upon in your city, understandably, young people will continue to leave and seldomly will ever return.

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References:

Calgary.ca, “Calgary Civic Census 2019.” 2019 Civic Census Results, 2019, p. 18, Calgary.ca.

CBRE, “Canada’s Office and Industrial Quarterly Statistics Q3 2020”, CBRE.ca.

Calgary Economic Development, “Fact Sheet: Calgary Small Business”, 2020 Edition Published: June 24, 2020, p 6., Calgaryeconomicdevelopment.ca

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For more stories, please visit Todayville Calgary

Alberta

Calgary Ring Road opens 10 months early

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Christmas comes early for Calgary drivers

The Calgary Ring Road is now ready to be opened to public traffic, several months ahead of schedule.

Calgary’s ring road is one of the largest infrastructure undertakings in Calgary’s history and includes 197 new bridges and 48 interchanges. The 101-kilometre free-flowing Calgary Ring Road will open to traffic Dec. 19, completing a project decades in the making.

“Calgary’s ring road is a project that has been decades in the making and its completion is a real cause for celebration. This has been an important project and our government got it done. With this final section completed, travelling just got a little easier for families and for workers. This will not only benefit Calgarians and residents in the metro region, it will provide a boost to our economy, as goods can be transported more easily across our province.”

Danielle Smith, Premier

Although construction of the entire ring road project began in 1999 under former premier Ralph Klein, discussions on a ring road around the City of Calgary began as early as the 1950s. In the late 1970s, under former premier Peter Lougheed, high-level planning and land acquisition started and a transportation utility corridor was established to make the Calgary Ring Road a reality.

“The final section of the Calgary Ring Road is now complete, and I’d like to acknowledge the work done by former premiers and transportation ministers and their vision to build Alberta. I’m proud to announce that the final section was completed on budget and months ahead of schedule.”

Devin Dreeshen, Minister of Transportation and Economic Corridors

“I’m thrilled to see the Calgary Ring Road project completed. It was something I have helped shepherd through the process since 2014. Finally, all the hard work put in by everyone has become a reality. The Calgary Ring Road will provide travellers with over 100 kilometres of free-flow travel, create new travel options for the City of Calgary and surrounding area and provide improved market access across the region.”

Mike Ellis, MLA for Calgary-West

Opening the ring road means new travel options for Calgarians, which will draw traffic away from heavily travelled and congested roads such as the Deerfoot Trail, 16th Avenue, Glenmore Trail and Sarcee Trail. For commercial carriers, the ring road provides an efficient bypass route, saving time and money for the delivery and shipment of goods and services.

“The ring road investment generated thousands of local jobs and will now play an integral role in keeping Calgarians and the economy moving. This important transportation link will ease congestion on city routes and greatly improve connectivity and access for businesses transporting goods.”

Jyoti Gondek, mayor, City of Calgary

The ring road is a critical component to growing economic corridors in Alberta and Western Canada, as it connects the Trans-Canada Highway to the east and west, and the Queen Elizabeth II Highway and Highway 2 to the north and south. It is also part of the CANAMEX corridor, which connects Alberta to the highway network in the United States and Mexico.

The completion of the ring road is a major boost for Calgary, opening new business opportunities and supporting key components of the Calgary economy. It sends a signal to businesses and investors that Calgary has a strong highway infrastructure, providing economic corridor connections through the entire region.

“With one of the smoothest commutes in Canada and the capacity to reach 16 million customers by road within a single day, Calgary offers unmatched quality of life and economic opportunities. The triumphant completion of the Calgary Ring Road further improves our capacity to attract even more companies, capital and talent to our city.”

Brad Parry, president & CEO, Calgary Economic Development and CEO, Opportunity Calgary Investment Fund

“This is an exciting step forward for the Calgary Metropolitan Region. This key artery will not only improve the quality of life for the residents of the region, it is also a key economic enabler and we are thrilled to see its completion.”

Greg Clark, chair, Calgary Metropolitan Region Board

Quick facts

  • Stretched into a single lane, the highway is 1,304 kilometres long, the distance from Calgary to Winnipeg.
  • Other sections opened in 2009, 2013, 2020 and 2023.
  • The West Calgary Ring Road is the final piece of the ring road project.
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Alberta

Canadian pizzeria owner planning civil suit against gov’t officials over tyrannical COVID mandates

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From LifeSiteNews

By Anthony Murdoch

They shut a man’s business down of 20 years, two families that depended on that, 30 people that were employed by the millions of dollars in taxes that I collected every year,’ Jesse Johnson said.

The owner of a popular Canadian pizzeria says he is planning a civil suit against government officials for a “travesty of justice” after enduring a prolonged legal battle on charges — that were just dropped — for defying COVID rules banning the vaccine free from eating at his restaurant.

On Wednesday, a City of Calgary court dropped all COVID-related charges against Jesse Johnson, who owned Without Papers Pizza, and in 2021-2022 refused to ask his customers for their vaccine passports so that he could serve “everyone.”

Johnson said when speaking with independent media reporter Mocha Bezirgan outside Calgary’s main courthouse Wednesday that he will be “pursuing a civil suit” against government officials and institutions that forced his restaurant to close.

“I plan on pursuing a civil suit, yes. It is a bittersweet irony what happened here today. My restaurant was shut unadjudicated,” Johnson said.

“They shut a man’s business down of 20 years, two families that depended on that, 30 people that were employed by the millions of dollars in taxes that I collected every year.”

Johnson said that the reason he got shut down was that he went against a system that discriminated against the vaccine-free, which was something he did not like.

“Because I did what? Because I chose to accept all and to extend my love to all the fine people of Calgary,” he said.

“A travesty of justice is what occurred? Really, truly a shame.”

Johnson said that he “hopes” and “prays” that his “brothers and sisters in the restaurant industry will stand up in the future and refuse to discriminate any of their customers for any reason whatsoever.”

“It’s the most difficult experience of my life. These bastards, they literally tried to break me. They tried to break me financially.”

Johnson praised “millions” of Canadians from coast to coast who came together to fight COVID dictates through various protests.

“Never give up hope. Never give up hope and believe in yourself. One thing I’ve learned across this journey is that the power of the human spirit is indomitable. And if there’s a mountain in front of me, that mountain shall move,” he said.

The Democracy Fund (TDF), which funded lawyers Martin Rejman and Chad Williamson in defense of Johnson, noted in a press release that the once-popular pizzeria was charged in October 2021 with “breaching multiple bylaws after its business license was suspended for not complying with public health orders and after undercover inspectors were permitted to purchase pizza and remain in the restaurant without providing proof of vaccination.”

“Among other things, the allegations against the pizzeria were that it permitted persons to enter and remain on the premises without proof of vaccination and that it did not display prescribed signage, all of which was contrary to bylaws passed by the City of Calgary,” the TDF noted.

Johnson’s charges being dropped came in the wake of a recent court ruling that declared certain public health orders effectively null.

At the end of July, Justice Barbara Romaine from Alberta’s Court of Kings Bench ruled that politicians violated the province’s health act by making decisions regarding COVID mandates without authorization.

The decision put into doubt all cases involving those facing non-criminal COVID-related charges in the province.

As a result of July’s court ruling, Alberta Crown Prosecutions Service (ACPS) said Albertans currently facing COVID-related charges will likely not face conviction but will instead have their charges stayed.

Danielle Smith took over from Jason Kenney as leader of the United Conservative Party (UCP) on October 11, 2022, after winning the leadership of the party. Kenney was ousted due to low approval ratings and for reneging on promises not to lock Alberta down, as well as enacting a vaccine passport.

Under Kenney, thousands of nurses, doctors, and other healthcare and government workers lost their jobs for choosing to not get the jabs, leading Smith to say – only minutes after being sworn in – that over the past year the “unvaccinated” were the “most discriminated against” group of people in her lifetime.

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