Shutting down Green Line is a stupid $850-million decision that will hit taxpayers in the wallet with nothing to show for it
No councillor or mayor who voted to spend $2.1 billion with nothing to show for it can possibly survive the election next October.
The massive loss, which includes $850 million in new windup costs, is surely unique for a Canadian city.
We usually look to the federal government for waste on that level. Even there, squandered loot buys something — a ship or two, maybe an excellent new postage stamp.
Our council voted for empty construction yards, bleak demolition sites and dormant land now owned by the city.
For some, there’s fresh pain and bitter irony.
Earlier this year, the city closed the Eau Claire Market, kicked out the businesses and evicted residents from 23 River Run townhouses directly north of the market.
The only possible redemption for such jackboot measures is replacing what is killed with something better.
There was a station and development plan for Eau Claire. Now that’s dead, too.
This divide on council is mostly (but not entirely) partisan. Voting to keep the project alive were Dan McLean, Sean Chu, Sonya Sharp, Andre Chabot and Evan Spencer. All but Spencer are UCP-aligned.
But then, council turned around and voted 8-7 to establish a working group to keep talking to the province and Ottawa.
What does make sense is finding a new way to build the Green Line. Premier Danielle Smith clearly wants that. The entire council agrees on the need.
Smith is starting to sound a bit nervous. She continues to say the city is welcome back at the table and a new design will appear by year end.
The premier also notes that the province would not own and build the project.
She played chicken and was perhaps startled when city hall clucked back. That must be satisfying to councillors such as Gian-Carlo Carra of Ward 9, who demands that Smith appear before council and apologize.
This plan would surely include station sites already chosen and work that’s done or in progress.
Going with Smith’s plan, whatever councillors think of it and her, is the only way to get some value out of the $1.3 billion already spent and evade some windup costs.
That $850 million, cited as the most modest estimate by city officials, is simply toxic when the only goal is to stop a project.
Contracts will be broken. Work has to be done around projects already underway. The biggest cost could be cancelling train orders from a Spanish company.
The effect on city finances and taxes will be catastrophic.
About $1.4 billion in property tax flows into the city treasury annually. Collecting an extra $850 million in one year would almost double the current tax rate.
Increases would probably be spread over several cycles. That would likely mean tax hikes of 10 to 15 per cent for years to come.
The only escape from spending $850 million is to reverse this absurd Green Line windup.
Council should dispense as little as possible, keep contracts alive and give the province a chance to design a workable project.
The alternative is scandal that will rip through election year 2025.
Councillors who voted to end Green Line might as well quit right now.
Don Braid’s column appears regularly in the Herald