The head of Calgary Economic Development is asking city council to consider adding another $90 million to the city’s Economic Development Investment Fund (EDIF), but one city councillor argued that the amount of money they’ve asked for seems arbitrary.
Moran said the initial $10 million that was allocated to launch the fund was a good starting point, but that more needs to be done given the high office vacancy rates and unemployment in Calgary.
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“I just can’t emphasize enough: 13 million square feet of office space is the entire size of downtown Vancouver. So we have a city on sale here and we won’t get there with $10 million,” Moran said.
Moran said Tuesday the city is lagging behind other major cities – including Edmonton – when it comes to employment growth.
“We have to do something to create new jobs,” Moran said.
Calgary Mayor Naheed Nenshi said the fund lets the city “make those kind of surgical, thoughtful investments on specific bids.”
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Farkas said he understands the city will have to pony up some cash but questioned whether $90 million is the right amount.
“I have big difficulty with just spending the money that feels right,” he said. “Again, I fully grant this premise that we have to pay to play and in principle, I understand that have to pony up something to get some new players at the table, but I’m not sold on how we got to the $100 million.”
Moran said if the fund doesn’t grow, the city won’t be able to compete for larger-scale, higher-return investment opportunities.
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In other cities, she said, investment funds have been used to stimulate growth, increase diversification and weather economic downturns.
“It has to be fast and nimble and responsive, but yet have a rigorous process and what we’ve learned is that economic development is moving at such a quick rate – much more rapidly than it used to be,” she said.
“People used to cite that it takes three years to do a deal in economic development. It’s more likely to be three months.”
Money for the EDIF would come from existing city reserve funds and would not impact property or business taxes.
A report will be brought back to council in early 2018 on a governance structure and terms of reference for the fund.
– With files from News Talk 770’s Aurelio Perri
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