Feds 'surprised and disappointed' by Alberta's withdrawal of funding for Green Line LRT

Alberta's decision to pull funding from Calgary's Green Line LRT project earlier this week is disappointing, says the office of the federal minister of housing, infrastructure and communities.

"We were surprised and disappointed by the decision," Sean Fraser's office said in a statement, adding the move will "impact thousands of jobs."

The comments come after Alberta Transportation Minister Devin Dreeshen notified the city that a commitment of $1.53 billion was being withdrawn, citing concerns with the alignment of the train line. 

In effect, the letter slammed on the brakes, putting the $6.2-billion project in doubt.

"This was especially surprising considering the positive discussions that took place with provincial officials at regular meetings where these apparent issues were not raised, up until the province's decision to delay construction, risking cost escalations," Fraser's office said in the statement.

Calgary Mayor Jyoti Gondek met with Dreeshen and Rob Anderson from the premier's office on Friday to explain that council requested information about the costs, risks and other consequences related to winding down the existing Green Line project.

She said in a statement that the information will be shared with both council and the Government of Alberta on Sept. 17.

"There was a request from the province for a summary of all work on Green Line to date, as well as ongoing work, and a summary of all contracts," Gondek said.

"The province also confirmed that they have no desire to revisit the original alignment. They are actively pursuing engineering expertise to create an above ground alignment by end of 2024."

On Friday, Dreeshen said the province looks forward to receiving this information to determine the project's next steps, and plans to put a third party in place as soon as possible to develop options for a longer, above-ground alignment that runs through downtown Calgary, extending to Seton and the South Health Campus.

"The Province of Alberta remains committed to the Green Line and an alignment and scope that works for Calgarians and Alberta taxpayers," Dreeshen said in a statement.

Pulling out of expensive 'boondoggle'

On July 30, concerns about escalating costs led to a city council vote, which approved a shorten train route and more spending.

In his Tuesday letter, Dreeshen called the city's revised Green Line LRT plan "unacceptable" and that the project was "fast becoming a multibillion-dollar boondoggle."

That wording was a departure from his earlier message when he seemingly green-lit the project, saying the provincial money was guaranteed in an interview on CBC's The Homestretch.

"You bet, 100 per cent, and I've been working closely with the mayor and Calgary city councillors so that they knew that the $1.53-billion commitment from the province for the Green Line was in place and that it was secure and that they can bank on it," Dreeshen said on Aug. 1.

The decision to withhold the money came after the province looked at the business case for the project, Dreeshen said Wednesday on The Homestretch, adding that the ridership potential wasn't worth the investment.

"We realized that having a $6-plus billion Green Line that essentially doesn't go anywhere is something that we couldn't put our support behind," he said.

'Largest flip-flop in Alberta's history'

Advocacy groups continue to speak out in favour of the Green Line, saying it's a crucial piece of infrastructure that many Calgarians have planned their futures around.

Speaking Friday on CBC's Calgary Eyeopener, Jeff Binks, president of LRT on the Green, said people bought homes in more isolated areas of the city based on the notion they'd have access to public transit.

With that now in jeopardy, he wants citizens to push to ensure the project stays on track. 

The organization has been advocating for the project be built in its entirety, from the far north to the deep south.

"We're hoping Calgarians will get angry. We're hoping Calgarians realize that they're about to lose a transformational project for the city," Binks said.

"Green Line is the largest investment project in Alberta's history. I think that makes the minister's decision to pull funding the largest flip-flop in Alberta's history."