I am pleased to be the advocate for an improved securities process for the construction and development activity in the City of Calgary. In order for projects to proceed, businesses must supply the City of Calgary with securities for the construction phase. This is necessary to ensure there is no liability to the City of Calgary (i.e. taxpayers). The downside of the previous policy was that a significant amount of capital monies was tied up, which in turn may have prevented further investments in the development as it moved forward. Additionally, the new process will help ensure an improvement in the targeted timing for returning the security.
I have some good news on the increased effort to release securities, in advance of a better process being implemented. Through an intentional effort, the City has released over $28.6M in development security on completed infrastructure year-to-date. This represents a 129% increase in security released over the same period in 2016. We anticipate that accelerating the release of this money will allow the development industry to reinvest in additional projects in the City.
For your information, we currently hold approximately $325M in total development security; however, much of that is required to ensure outstanding construction obligations are met on incomplete projects.
This is just one more process improvement that reduces red tape and encourages investment from business in our city.
Best of Business,
Councillor, Ward 1
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