Calgary
Forget the Horizon, Downtown Calgary is in Big Trouble Right Now
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.
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.
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.
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.
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
Scotia Place – Calgary unveils design for new arena / events centre
News release from the City of Calgary
Scotia Place, Calgary’s new event centre, designed as a place for community where there is room for everyone
The City of Calgary and Calgary Sports and Entertainment Corporation (CSEC) are excited to reveal the design for Calgary’s new event centre – formally named Scotia Place.
The design is influenced by the ancestral and historical land of Indigenous Peoples and the culturally significant site that embodies our shared purpose – to gather. It brings together Indigenous cultural perspectives with Calgary’s and the region’s natural beauty, reflecting the four elements of nature – fire, ice, land and air.
A striking feature of the building is the central structure with a textured flame motif that emulates a home fire, which is further amplified when it is lit at night. The home fire, a place of warmth and energy that brings people together to share stories of the past and create stories for the future, rises from the white, glacial-like forms that define the lower parts of the building.
“When you consider that Calgary is already the envy of other cities with a new world-class convention centre in the heart of the Culture + Entertainment District, the addition of Scotia Place is another signal to investors that our city understands how to build a future that leverages hospitality and hosting as its core strengths,” says Mayor Jyoti Gondek. “We are also acknowledging and honouring the foundational role that Indigenous communities have played for generations in making Calgary, and now Scotia Place, a space where we all belong.”
Scotia Place, which is scheduled to open in fall 2027, celebrates the area’s importance as a place for all and will be a landmark attraction in Calgary’s emerging Culture + Entertainment District. More than a building, however, the 10-acre city block is designed for community and connection and includes a community rink, outdoor and indoor plazas spaces, four restaurants, the Calgary Flames Team Store, and future development opportunity in the northeast corner. It will provide gathering places and amenities for the 8,000 people who will live in this new downtown neighbourhood.
“Calgary has a long history of hosting world-class events, drawing millions of visitors to the city each year, generating revenue for local businesses, and boosting the economy,” says Danielle Smith, Premier of the Province of Alberta. “With construction on the Calgary Rivers District and Event Centre now underway, Calgary is one step closer to a revitalized downtown that will bring new energy into the city, attract more exciting events, and create jobs to improve the quality of life for Calgarians.”
A development permit application for the facility was submitted on July 19, 2024. This was a significant milestone for the project team, consisting of CAA ICON, HOK-DIALOG, and CANA/Mortenson. People interested in following or commenting on the permit can find the application at Calgary.ca/dmap. The application is expected to be heard by the Calgary Planning Commission by end of 2024.
“This is an important day for Calgary,” says Councillor Sonya Sharp, Event Centre Committee Chair. “Today is about so much more than the designs of a building. Today is the unveiling of a place where Calgarians and visitors from around the world will make memories at concerts, and sport and community events. I hope that everyone is as excited as we are, knowing that Scotia Place will become the complete experience in our new Culture & Entertainment District.”
“At CSEC, a key component of our mission is to be the heartbeat of our community, create connections and bring people together,” said Robert Hayes, CSEC President and CEO. “Scotia Place will become the perfect home to achieve and share this mission with all Calgarians. Seeing the design brings the vision of so many contributors to life. We are especially thankful to the City of Calgary and the Province of Alberta for their leadership and support to help bring us to this point. In stride with our partner Scotiabank, we are very proud to play our role in presenting Scotia Place as the culmination of diligence and passion, that is now visual in this breathtakingly beautiful and meaningful facility.”
“For years we have seen firsthand the value these partnerships bring to the communities in which we operate and for our clients,” said Aris Bogdaneris, Group Head, Canadian Banking of Scotiabank. “Scotia Place introduces a bold new vision for what will be Alberta’s premier sports and entertainment venue. For nearly 20 years, Scotiabank has been a proud partner of Calgary Sports and Entertainment Corporation and together, we are committed to bring fans and our clients an unforgettable experience when they walk through the doors of Scotia Place.”
“We are excited to start the construction of the critical infrastructure needed to build thousands of new homes and to make the Calgary’s new Culture + Entertainment district a reality,” says Devin Dreeshen, Minister of Transportation and Economic Corridors. “Albertans expect basic infrastructure to be maintained and improved and this commitment from the province goes a long way in helping Calgary build these projects.”
Acknowledging the significance of the building’s location at the confluence of the Bow and Elbow Rivers on the ancestral land of the Treaty 7 Peoples and the Metis Nation, The City, CSEC, HOK-DIALOG and CAA ICON worked with an Indigenous Advisory Group that included representatives from the Treaty 7 Nations, the Métis Nation of Alberta, Region 3, and the Urban Indigenous community throughout the design process.
“It was great to be part of a truly representative voice that included all indigenous peoples of southern Alberta regarding the design of this center acknowledging the historic significance of the land it sits on to the Metis people,” said Carmen Lasante Captain of the Calgary Elbow Metis District. “Inclusivity is a core part of who the Metis are. The City has worked hard to include many diverse histories together in creating this space.”
“Engaging in the right way is fundamental to the success of relationship development with the Indigenous communities, as we have played a critical role in the identity of the land now known as the city of Calgary as the Indigenous nations are inextricable linked to the landscape and environment,” says Ira Provost, Piikani Nation Consultation
A key theme heard often during the Indigenous engagement sessions was “Come in, there is room”, making it clear that Scotia Place needs to be a place that is designed for all.
The public plazas are designed to honour the deep-rooted connection that Indigenous Peoples have with the land, incorporating representations of the tipi, Métis Trapper’s Tent, and elements of Alberta’s world-renown natural landscape.
An important design decision was to lower the event and ice surface so that the primary concourse will be at street-level. Calgarians and visitors will be able to move seamlessly between the curb, the primary concourse and the outdoor public plazas.
“We at DIALOG are thrilled to join forces with HOK and combine our unique expertise to transform Calgary’s Event Centre into the catalyst for a dynamic new urban community,” says Doug Cinnamon, Partner Architect at DIALOG.
“Other design principles including public realm activation, the integration of indigenous influences, public art & storytelling, sustainability, and a balance between past, present, and future is central to our vision. The ultimate goal is to ensure seamless accessibility, promote mixed uses, and create vibrant public areas for everyone to enjoy. This joint redesign represents an opportunity to spur investment into the area and enhance its cultural vitality, anchoring Calgary’s position as a thriving, bustling community hub.”
Scotia Place is a generational investment in Calgary’s emerging vibrant Culture + Entertainment District. A modern event centre with universal accessible design throughout and with energy and water conservation built in to maximize efficiencies and the ability to be net-zero by 2050, Scotia place is designed to serve Calgary’s growing community for decades to come.
Construction begins this week. Additional information about Scotia Place including design renderings, a video, and frequently asked questions is available on Calgary.ca/ScotiaPlace.
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