Calgary's Urban Placemakers - Item #12.2.1 - Meetings

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Calgary's Urban Placemakers - Item #12.2.1 - Meetings
Item #12.2.1
                                                                             C2018-0206
                                                                          ATTACHMENT 2

                                                                                       2 0 1 8 B U S I N E S S P L A N U P D AT E
                                Calgary’s Urban Placemakers

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                                                 INTRODUCTION

  Note: This document constitutes                Over the past 11 years, CMLC has
  an interim update to CMLC’s                    done more than rebuild East Village
  2017–2019 Business Plan, which                 from the ground up and—through
  Calgary City Council approved                  public infrastructure improvements,
  on December 15, 2016. Its intent               strategic placemaking and enthusiastic
  is to provide clarity on the work              programming—breathe new life into
  we will be doing during the 12                 downtown Calgary’s east end.
  months of 2018. As you read this
  update for 2018, please refer                  We’ve proven our depth, our
  as necessary to the full three-                commitment and our versatility.
  year Business Plan. In many                    One of the core strengths of CMLC’s
  instances, we’ve provided page                 team, our executive and our Board of
  numbers for ease of reference.                 Directors is our ability to work in ways
                                                 that balance the interests of various
                                                 sector partners—government, private
                                                 and not-for-profit—for the benefit
                                                 of the greater community and our
                                                 partners.
                                                 Shaped by previous chapters of
                                                 our careers in banking and finance,
                                                 economic development, residential

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  and retail development, legal and              At these points of intersection, CMLC
  not-for-profit operations, sports and          is well positioned to apply our unique
  recreation, product commercialization,         combination of talents to deliver
  communications and more, our                   value for our Shareholder, The City of
  diverse skill sets, perspectives and           Calgary, and for the citizens of the city
  approaches to problem-solving have             we’re so proud to call home.
  formed the foundation of our success
  in community development. We draw
  on them regularly in our strategic
  planning and in our discussions and
  negotiations with development and
  community partners.
                                                                      Business
  This powerful combination of skills,                               (for profit)
  perspectives and approaches—
  one that cannot be fabricated or
  recreated—is among our organization’s
  foremost advantages.
  As Calgary forges ever onward in its
  city- and community-building efforts,             Not-for-profit                  Government
  there will be many spaces where the
  interests of the government, private
  and not-for-profit sectors cross paths.

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 ECONOMIC OUTLOOK

 Calgary and Edmonton are forecast to            Calgary’s economy is expected to
 be Canada’s fastest growing census              expand by 4.6% in 2017, making it the
 metropolitan areas (CMAs) in 2017,              growth leader among the 13 CMAs
 according to the Conference Board               in the Conference Board’s report.
 of Canada’s Metropolitan Outlook:               Renewed investment and increased
 Autumn 2017.                                    drilling are spurring growth in the
                                                 primary and utilities & manufacturing
 “The worst appears to be over for               sectors, while the construction
 Calgary and Edmonton. Alberta’s                 industry is slowly recovering. On the
 economy has been getting stronger               services side, strong job gains are
 thanks to a rebound in drilling and             encouraging consumers to open their
 increases in oil production, which              purse strings, raising wholesale and
 has helped to fuel renewed economic             retail output by 7.0%. Meanwhile,
 growth in the province’s largest cities,”       the transportation and warehousing
 said Alan Arcand, Associate Director,           industry is receiving a lift from rising
 Centre for Municipal Studies. “But with         goods sector activity, while the
 oil prices struggling to rise above US          finance, insurance and real estate
 $50 per barrel, Edmonton and Calgary            industry is benefitting from a housing
 should expect to see more moderate              market recovery.
 growth in 2018.”

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  However, with oil prices expected              Highlights
  to rise only gradually, Calgary’s
  real GDP growth is expected to                 • Calgary’s economy is on track
  slow to 2.1% in 2018. Employment                 to surge by 4.6% in 2017 before
  is expected to follow suit, with job             slowing to 2.1% growth in 2018
  growth moderating from 2.7% in 2017            • While oil prices have improved over
  to 1.1% in 2018. Although Calgary’s              the past year, they are expected to
  unemployment rate is expected to fall            remain below pre-recession highs
  to 7.7% by 2018, down from a 22-year
  high of 9.4% in 2016, it will remain           • Strong job gains are encouraging
  above the national average.                      consumers to open their purse
                                                   strings, raising wholesale and retail
  In November, ATB Financial’s chief               output by 7.0%
  economist Todd Hirsch offered
  a similar forecast. With Alberta
  experiencing real GDP growth of
  around 4% in 2017, Hirsch believes
  the recession is firmly behind us, even
  though Alberta continues to struggle
  with an unemployment rate of nearly
  8%. He predicts that unemployment
  will remain high in 2018 but forecasts
  GDP growth of 2.7% in 2018 and 2.2%
  in 2019.

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  CONTENTS

  09     Chapter One
         Inside the Rivers District
  14     Our Business Strategy
  15     Projects
  27     Project Management
  28     Land Sales & Activations
  30     Developer Partner Activity
  33     Programming & Community Building

  37     Chapter Two
         Outside the Rivers District
  39     Our Business Strategy
  44     Current & Potential Projects

  47     Chapter Three
         Finance & Corporate Services
  48     Corporate Services
  51     Financial Strategy

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                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 9

                                     CHAPTER ONE
                               INSIDE THE RIVERS DISTRICT

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                                                            C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 0

  Inside the                                     When the City of Calgary created
                                                 CMLC in 2007, our marching orders
                                                 were to implement and execute
  Rivers District                                the Rivers District Community
                                                 Revitalization Plan—a public
                                                 infrastructure program approved by
                                                 the City of Calgary and the Province
                                                 of Alberta to kick-start Calgary’s
                                                 urban renewal.
                                                 Eleven years later, against an east-
                                                 end skyline our redevelopment
                                                 efforts have profoundly altered
                                                 for the better, CMLC is once again
                                                 renewing our commitment to taking
                                                 “urban renewal” to a whole new level.

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                                                             C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 1

  With East Village standing proudly             of these projects—the Rivers District
  as a testament to our talents                  Master Plan—in 2017; and in 2018
  in visioning, redevelopment,                   we’ll begin work on two more: the
  placemaking, programming and                   17th Avenue SE Extension and the
  relationship-building, we resolved in          5th Street Underpass (part of the
  2017 to extend our efforts into the            Green Line Interface in Victoria Park).
  further reaches of the Rivers District
  (and beyond).
  To solidify that commitment, our
  2017–2019 Business Plan allocated
  $200 million to 10 planning and
  infrastructure improvement projects
  in Victoria Park. We initiated the first

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                                                                 C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 2

  Managing Our                                   For CMLC, implementing the Rivers District
                                                 Community Revitalization Plan is a
                                                 20-year commitment whose halfway mark
  Commitments                                    we reached in 2017. And over any 20-year
                                                 period, economies, markets, land values,
                                                 property assessments and all the rest will
                                                 ebb and flow.
                                                 Since oil prices plummeted in the fall
                                                 of 2014, “ebb” has been the prevailing
                                                 direction in Calgary’s economy. While the
                                                 worst now appears to be behind us and
                                                 things are on the upswing, repercussions
                                                 continue to impact our business.
                                                 When we committed $200 million to
                                                 projects in Victoria Park, our rigorous
                                                 market analyses indicated that we’d
                                                 generate that amount in CRL revenues if
                                                 we realized the remaining development
                                                 potential in the Rivers District.
                                                 However, with the City’s reassessment of
                                                 downtown property values (which saw the
                                                 value of downtown’s office buildings drop
                                                 by $3.8 billion, to $17.4 billion—a decline
                                                 that cut deeply into the municipal taxes paid
                                                 by owners of non-residential properties),
                                                 we were impelled to re-forecast our CRL

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                                                                   C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 3

  generation. Where we previously                Total CRL generated:
  estimated our 20-year CRL generation
  at $801 million, our new (equally              $755 million
  conservative) estimate is $755 million.
  The projected CRL revenue available            Infrastructure

  to allocate to Victoria Park projects          Completed or committed
  now stands at $150 million. To realize         (Considers go-forward
  this revised CRL target, our need              CMLC operations)
  to attract an additional 5.5 million                                                                   Remaining CRL
  square feet of development remains                                                                        Generation
  unchanged. Driving density remains
  our high priority.
  Our CRL term and the CRL dollars we
  generate are both finite. Yet while the
  CRL term will not fluctuate, our CRL
  generation will.                                                $601 million
                                                                  2007 - 2017
  In the face of economic downturns
  and market fluctuations, the most
  important thing we can do is stay                                                            $154 million
  focused on the big picture and                                                               2017 - 2027
  course-correct as needed to ensure we
  realize our 20-year vision. At the same
  time, approaching everything we do
  with rigour and a view to cost savings
  will help ensure we’re able to give
  Victoria Park the attention it needs.            *updated Fall 2017

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                                                             C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 4

  Our Business Strategy
  Within the Rivers District

  To deliver a public infrastructure and placemaking
  program to attract private investment, to stimulate CRL
  generation, and to create a sustainable tax base for the
  City of Calgary as our Shareholder

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                                                                                     C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 5

  Projects

  In 2018, our biggest project files        New Central Library                          Completion and handover to Calgary
  within the Rivers District (including                                                  Public Library (CPL) is planned for
  East Village) will include:               Construction on the New Central              October 1, 2018. We will work with
                                            Library began with the LRT                   CPL to help deliver Grand Opening
                                            encapsulation in 2013. In fall 2017,         celebrations befitting a project of
                                            as we entered the final 12 months of         the New Central Library’s stature
                                            construction, this complex project           and importance.
                                            remained on schedule; and thanks to
                                            material and labour cost advantages
                                            created by Calgary’s recessionary
                                                                                         3rd Street SE
                                            economy over the past few years,             Public Realm
                                            it promises to come in under the
                                                                                         Encompassing approximately five
                                            original budget of $245 million.
                                                                                         city blocks from 9th Avenue SE to
                                            The principal focus during the final         the Bow River, the 3rd Street SE
                                            year of construction is the “fit and         Streetscape Improvement Project
                                            finish” work that will bring the new         is dramatically reshaping a space
                                            facility to completion. This is when         once dominated by vehicles and
                                            the experiential elements of the             LRT lines into a pedestrian-oriented
                                            building will come together, from            streetscape that connects the New
                                            the layout and design of the library’s       Central Library with Jack & Jean
                                            interior spaces to the furniture             Leslie RiverWalkTM and the Bow River.
                                            choices and public art installations
                                                                                         The project is being delivered
                                            to the selection of an operator for
                                                                                         in two phases and, for cost and
                                            the café.
                                                                                         time efficiencies, is being carefully
                                            Also in 2018, the landscape finishes         coordinated with many parties and
                                            (pavers, trees and plants) will be           with the construction activity on the
                                            installed, and the New Central               New Central Library, RioCan’s 5th
                                            Library’s public art will be unveiled.       & THIRD and the City’s Municipal
                                                                                         Building repairs as well as ongoing
                                                                                         utility work by Enmax.

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                                                                                        C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 6

  We are also committed to improving        We’ve made substantial progress                     live, work, play and shop in the
  our coordination with the City of         in understanding the community’s                    neighbourhood. This became the
  Calgary Transportation (Roads)            connectivity, urban context,                        foundation of our land strategy
  team.                                     perception challenges and                           to attract private developers
                                            development opportunities. In 2018,                 (and retailers) to the community,
  In 2018, CMLC will focus on               we will initiate a year-long program                which was critical to our CRL
  the pedestrian environment                of public, landowner and developer                  generation. Again for Victoria
  (sidewalks and crossings) along           engagement with a view to finalizing                Park, we are working with
  3rd Street SE and on continued            the master plan vision by Q4 2018.                  international consumer research
  construction related to the New                                                               expert Roland Berger to define
  Central Library site.                     Our broad community engagement                      and understand the future
                                            program will focus on the following                 resident (investor) of Calgary’s
  Phase 1, which constitutes the            themes:                                             Cultural and Entertainment
  area along 3rd Street SE between
                                                                                                District. As this information
  9th Avenue and 5th Avenue, is             1. Infrastructure Investment and
                                                                                                will be critical to our business
  expected to wrap up in Q4 2018.              Delivery: CMLC will restate our
                                                                                                discussions with land owners
                                               commitment ($150 million) to
                                                                                                and developers, we’ll seek input
                                               public realm improvements
  Rivers District Master                                                                        to help refine our understanding
                                               within the community and will
  Plan (RDMP)                                  seek public input, ideation and
                                                                                                of the living needs of the future
                                                                                                Victoria Park resident.
  We have been working with our                engagement on the 17th Avenue
  design team, Civitas (Denver)                SE Extension, 9th Avenue SE                  3. Retail Research: CMLC will
  with Gibbs Gage Architects, and a            Bridge (Inglewood) and 5th                      engage community stakeholders
  group of community stakeholders              Street SE Underpass/Green Line                  and neighbours in a discussion
  to articulate a master plan vision           integration. As we did for East                 around the types of retail
  to guide redevelopment of Victoria           Village, we’ll paint a holistic vision          operations Calgary’s Cultural
  Park (286 acres south of 9th Avenue          of infrastructure investment in                 and Entertainment District
  SE)—another important step toward            the area while seeking feedback                 would attract and the types
  transforming the 500-acre Rivers             on specific projects to inform our              of operations needed for the
  District into Calgary’s Cultural and         design thinking.                                vitality of the community. This
  Entertainment District. This is one of                                                       information will inform the
                                            2. Demography and Psychography:
  the 10 new CRL-driven projects we                                                            planning work for Stampede
                                               The East Village Master Plan
  committed to undertake in our 2017–                                                          Trail—one of the main
                                               articulated a story and vision
  2019 Business Plan (see page 23).                                                            development triggers of the
                                               of someone who’d one day
                                                                                               Calgary Stampede Concept Plan.

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Artist’s Rendering: Mir.

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                                                                                  C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 1 8

  4. Area Redevelopment Plan                5. Synthesize all public feedback         17th Avenue SE Extension
     (ARP): As we prepare to                   and finalize master plan vision:
     deliver a master plan for a new           Equipped with stakeholder              Another of our 10 new project
     downtown east-end community,              and public input, CMLC can             commitments (see page 23), this
     we must coordinate our vision             put the final touches on the           infrastructure project involves the
     and aspirations with the ARP to           master plan vision and                 extension of 17th Avenue SE into
     ensure that policy and planning           launch into the next phase of          Stampede Park to forge a pedestrian
     can support future growth                 strategic communications               and vehicular link that increases
     objectives. We’ll work with City of       and placemaking.                       connectivity and creates an attractive
     Calgary, Business Revitalization                                                 right of way for new retail and
     Zones (BRZ), community                                                           commercial development. This is our
     associations, Calgary Stampede                                                   first horizontal infrastructure project
     and local business operators to                                                  scheduled in Victoria Park.
     have a public discussion about
                                                                                      In 2017, CMLC selected IBI Group
     the community’s urban planning
                                                                                      as prime consultant (civil) and O2
     context and how the new
                                                                                      Planning + Design as landscape
     ARP can help achieve density
                                                                                      design consultant, and a project
     expectations for the community
                                                                                      steering committee was formed with
     and attract developers
                                                                                      representatives from CMLC, Calgary
     and investment.
                                                                                      Transit and Calgary Stampede.
                                                                                      Project start-up is now underway,
                                                                                      and a concept design is expected to
                                                                                      be ready in March 2018.

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                        9th AVE SE

                                      Macleod Trail
        1st Street SE

                                                                                                                                                                             E
                                                                                                                                                                          tS
                                                                                                                                                                         re e
                                                                          3rd Street SE

                                                                                                                                                                      St
                                                                                                                                                                    7th
                        11th AVE SE

                                                                                                                                                                                r
                                                                                                                                                                            ve
                                                                                                                                                                          Ri
                        12th AVE SE

                                                                                                                                                                      w
                                                                                                                                                                     bo
                                                                                          Olympic Way SE

                                                                                                                                         6th Street SE

                                                                                                                                                                    El
                                                                                                                         5th Street SE
                        13th AVE SE

                        14th AVE SE                                                                        14th AVE SE

                        15th AVE SE

                        17 th AV E SE
                                                                                                                                                     Rivers District
                                                                                                                                                     Infrastructure/
                                                                                                                                                     Critical Connectors

                                                                                                                                                     9th Avenue SE Bridge

                                                                                                                                                     5th Street SE Underpass

                                                                                                                                                     Green Line

                                                                                                                                                     17th Avenue SE Extension

                                                      El
                                                           bo
                                                                w
                                                                    Ri
                                                                         ve
                                                                              r

Vision of 17th Avenue and 5th Street SE connections.

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                                                                                      C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 0

  5th Street SE Underpass                   9th Avenue Bridge
                                            into Inglewood
  A key piece of infrastructure
  for realizing the RDMP is a new           CMLC is working with City of                             DID YOU KNOW?
  underpass that connects 5th Street        Calgary to co-fund and deliver a
  SE to 11th Avenue SE, as the current      new vehicular bridge into Inglewood.                     Built in 1909 to
  road network isolates undeveloped         The prime design consultant is
                                                                                                     accommodate a new
  parcels and makes them “land locked”                                                               streetcar system, the
                                            MMM Group with support from
                                                                                                     existing 9th Avenue
  in terms of road access. As part          Sturgess Architecture.
                                                                                                     Bridge is nearly 110
  of our commitment to attracting
                                            Following an engagement program
                                                                                                     years old.
  investment while increasing the
  density, livability, vibrancy and         in May 2017 to solicit community
  development potential of the area,        input on three potential designs, the
  CMLC plans to design and construct        City selected a final design to be
  a 5th Street SE Underpass. Like the       shared with the community at an
  4th Street SE Underpass that CMLC         Open House in 2018.
  and the City of Calgary initiated
                                            The City and CMLC are sharing the
  in 2008 and opened in 2011, the
                                            responsibility of public engagement
  5th Street SE Underpass will be
                                            for this much-needed infrastructure
  delivered in two phases: Phase 1—
                                            improvement project. We are
  Due Diligence & Design and
                                            currently planning next steps in the
  Phase 2—Construction.
                                            engagement process.
  This construction program is being
                                            Construction on this City-led project
  planned as part of the Victoria
                                            is expected to begin in Q4 2018. At
  Park Green Line Interface project
                                            that time, 7th Street SE will close for
  described in our 2017–2019 Business
                                            two years.
  Plan (see page 38). CMLC will
  work with the City of Calgary’s
  Transportation Infrastructure
  and Green Line teams to realize
  efficiencies by aligning with work the
  City will be undertaking in 2018.

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                                                                                  C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 1

  9th Avenue SE Parkade                     Parkade                                  Innovation Centre
  & Innovation Centre                       •    Provide 510 parking stalls          •    Establish a vibrant presence
  In 2014, Calgary Parking Authority        •    Create active uses other                 at grade
  (CPA) identified a need for additional         than parking                        •    Create 50,000 SF +/- of durable,
  parking supply in East Village. To                                                      flexible space for innovation
                                            •    Improve the public realm
  meet that demand, CPA decided                                                           technology services
                                                 at grade
  to build a parking structure on one
                                            •    Design to support future            •    24/7 activation
  of the two properties currently
  operating as surface lots south of             development of east and
                                                                                     After working through the final design in
  the New Central Library along 9th              west parcels
                                                                                     Q1 2018, we will submit our development
  Avenue SE (407 and 363 9th                •    Create a parkade with a future      plans for permitting and prepare for a
  Avenue SE).                                    conversion strategy                 start of construction in 2019.

  Since late 2016, the project has been
  under CMLC’s stewardship. Our
  Shareholder and CPA challenged
  us to consider a mix of uses for
  the building and ensure its design
  allows for conversion space in the
  future. Our intent is to design and
  construct a parking structure with an
  integrated Innovation Centre, each
  guided by the following objectives:

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                                                                            C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 2

           5 Investment Principles for investment of remaining CRL
           Going forward, investment of remaining CRL revenue must:

                                   ‘Protect the CRL base’ of multi-family residential
                                   and commercial development within the Rivers
              Principle 1
                                   District and achieve the remaining 5.5 million SF
                                   of taxable development

                                   Support projects identified in the Rivers District
                                   Community Revitalization Plan and East Village Master
              Principle 2
                                   Plan while aligning with City objectives for growth and
                                   urban densification

                                   Give priority to projects that can activate sooner to
              Principle 3
                                   stimulate CRL capture (“time is money”)

                                   Weigh CRL investment against total project magnitude
              Principle 4
                                   to allocate funds

                                   Allow CMLC to manage corporate risks by assuming
              Principle 5
                                   project management responsibility

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                                                                                      C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 3

  Our Top 10 for the                           principles to establish a shortlist         acknowledged that only with a
  Next 10 Years                                of 10 projects on which to focus            sufficient extension to our CRL
                                               during our following 10 years of            term could we direct meaningful
  In developing our three-year                 infrastructure delivery.                    CRL revenues toward these
  Business Plan for 2017 to 2019,                                                          mega-projects.
  we applied a rigorous strategic              Our full list of potential projects
  planning process to create a list            included three mega-projects—the            Note that our shortlist of
  of 23 potential new infrastructure           Victoria Park Event Centre/Arena            go-forward projects does not
  projects in the Rivers District. After       Facility, Arts Commons and BMO              include land strategy as these
  careful study, analysis and costing,         Expansion—with combined estimated           strategic transactions do not
  we evaluated each project against            costs of approximately $1.5 billion.        require the use of CRL funds.
  a set of five weighted investment            Our Board and our Shareholder

   Item    Name of Project                                                     P1     P2           P3            P4            P5           Total

     1     East Village Infrastructure                                                                                                        3

     2     East Village Maintenance                                                                                                           3

     3     Rivers District Master Plan                                                                                                        5

     4     Olympic Plaza (Without Parkade or Upgrades to Municipal Plaza)                                                                     2

     5     17th Avenue SE Extension                                                                                                           4

     6     Green Line Interface/Victoria Park Connector                                                                                       4

     7     CS-Stampede Trail and Victoria Park Strategic Projects                                                                             4

     8     RiverWalk Stage 3                                                                                                                  4

     9     9th Avenue SE Cycle Track                                                                                                          3

    10     12th Avenue SE Cycle Track                                                                                                         3

  For a full list and descriptions of the potential Rivers District projects
  we analyzed, see pages 16-17 of our 2017–2019 Business Plan.

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                                                                                     C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 5

  Ongoing East Village                      combination of wood decking and               EV Dog Park
  Improvements                              pavers. This will ensure the square
                                            is more resilient while increasing the        To meet the needs of pet owners
  Safety Precautions and                    use of natural materials in the area.         (or, more accurately, pets) now
  Improvements to Public Realm                                                            residing in East Village, CMLC
                                                                                          is working to construct a small
  In June 2017, CMLC engaged Mount          4th Street SE Underpass                       dog park near Fort Calgary—a
  Royal University Department of                                                          spot for Spot to go and ‘go’. To
                                            Since opening in November 2011, the
  Criminology to study levels and                                                         deliver this new amenity, we are
                                            4th Street Underpass has seen a lot
  perceptions of safety in East Village.                                                  working with Stantec—the same
                                            of traffic. Designed lighting within
  The research team concluded that                                                        landscape architect that delivered
                                            the underpass has failed the test
  while residents feel safe, they have                                                    the adjacent Children’s Park at
                                            of time and needs to be replaced
  concerns about drug use and drug                                                        Crossroads.
                                            and enhanced. Additionally, the
  paraphernalia storage in several
                                            space needs a placemaking focus,
  hotspots within the neighbourhood.
                                            especially as CMLC prepares to                FAC / CCC
  To address these concerns, CMLC
                                            unveil the master plan vision for
  has identified three public areas for                                                   Early in 2018, we will devote
                                            a new Cultural and Entertainment
  design upgrades and intervention:                                                       more time and effort to Phase 8
                                            District on downtown Calgary’s east
  Riverfront Lane (north end),                                                            (8th Avenue SE) to complete all
                                            end. CMLC will replace the lighting
  C-Square and the Simmons Building                                                       maintenance work in early spring to
                                            with new programmable LED lights,
  (basement). We will examine each                                                        avoid conflict with the fall opening
                                            which will allow for community
  space with an eye toward eliminating                                                    of the New Central Library.
                                            programming like that which takes
  hiding places, adding better lighting
                                            place on Reconciliation Bridge
  and addressing loitering, and we’ll                                                     CMLC’s Board has directed us
                                            (formerly Langevin Bridge). We’ll
  engage our business owners and                                                          to hold all assets under CMLC
                                            also engage our creative community
  residents in a KEEP EV SAFE                                                             control until the CRL term expires.
                                            to animate the underpass with an
  awareness campaign.                                                                     Not only is this respectful of
                                            extension of our curated mural
                                                                                          the demands placed on our
                                            program currently in place along
                                                                                          Shareholder, it ensures the CRL
  Repairs to 5th Street Square              Jack & Jean Leslie RiverWalk.
                                                                                          is used as intended—namely, for
  In spring 2018, CMLC will remove                                                        the responsible stewardship of
  5th Street Square’s resin–bound                                                         community redevelopment.
  gravel—a material that has failed
  to meet our high construction
  standards—and replace it with a

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                                                                                  C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 7

  Project                                   Calgary Housing                           Innovation Centre
                                            Company
  Management                                                                          CMLC will act as PM to build 50,000
                                                                                      SF of incubator and start-up office
                                            CMLC will act as Project Manager
                                            for Calgary Housing Company for           space in the new 9th Avenue SE
                                            an improvement program being              Parkade. Technology leaders will
                                            planned for the podium of East            own space upon completion (strata
                                            Village Place (610 8th Avenue SE),        title) and will operate the Innovation
                                            which comprises approximately             Centre per their operational
                                            23,000 SF of community space              agreements. CMLC will work with
                                            on the building’s first two floors.       Calgary Public Library, Studio
                                            The City has selected a head lease        Bell (National Music Centre), Bow
                                            tenant and is making base building        Valley College, Beakerhead, Calgary
                                            improvements within the podium to         Stampede and the tech sector to
                                            accommodate tenancy.                      identify programming opportunities
                                                                                      that we can incorporate throughout
                                                                                      the Rivers District in advance of the
                                                                                      Innovation Centre’s construction to
                                                                                      advance our placemaking efforts and
                                                                                      attract new people and new ideas to
                                                                                      East Village.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 8

  Land Sales                                Block K (‘EVE Block’)                       Block Q

  & Activations                             In Q2 2017, CMLC initiated a direct
                                            marketing campaign to identify
                                                                                        CMLC and FRAM + Slokker are
                                                                                        reworking our master Purchase and
                                            a new development partner                   Sale Agreement to accommodate
                                            for Block K, or EVE Block—the               the developer’s exit from the east
                                            last remaining full city block of           portion of Block Q (parcels 3 and 4)
                                            development opportunity within              and allow a new developer partner
                                            the East Village land program,              to enter the program and fulfill the
                                            with approximately 800,000 SF               vision for the balance of the block.
                                            of development potential. We                FRAM + Slokker will continue to
                                            primed the marketplace with a               deliver parcels 1 and 2 and will work
                                            national campaign with online and           with CMLC on a Coordinated Site
                                            print ads in The Globe and Mail,            Delivery Agreement that describes
                                            Calgary Herald, Vancouver Sun,              how all parties can cooperate
                                            Edmonton Journal and Report on              on staging and construction of a
                                            Business Magazine, followed up              mixed partner site. To identify a
                                            with conversations and meetings             suitable partner for parcels 3 and 4,
                                            with more than 100 developers,              CMLC will initiate a new developer
                                            brokers and agents. By the deadline,        marketing program in Q1 2018.
                                            August 15, we had received three full
                                            responses to the land offering. We
                                            then initiated Phase 2 of developer
                                            negotiations to understand the
                                            development concepts including
                                            product mix, design approach and
                                            land valuation. In September, with
                                            Board endorsement, CMLC entered
                                            full negotiations with our preferred
                                            partner and anticipate a partner
                                            announcement later in 2018.

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                                                                                     C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 2 9

  St. Louis Hotel
  In Q4 2017, CMLC issued a Request           In 2018, we will identify and
  for Proposals from prospective              announce the new tenant(s) for the                    DID YOU KNOW?
  tenants for the main and lower floors       St. Louis and prepare for FFE with a
  of the St. Louis Hotel building at          view to initiating operations in                      During the 1980s,
  430 8th Avenue SE. To bring the             Q2 2019.                                              former Calgary Mayor
  building’s structure and systems                                                                  and Alberta Premier
                                                                                                    Ralph Klein held
  up to modern standards, CMLC has
                                                                                                    court in the St. Louis’
  invested $9.2 million into restoring
                                                                                                    downstairs pub.
  the historic 1914 hotel.

  In our view, the St. Louis
  Hotel building is well suited to
  entrepreneurial businesses with
  the artisan spirit of the Maker
  Movement—an ideal fit with the
  “village retail” dimension of CMLC’s
  overall retail strategy for East Village.
  While the building’s zoning allows for
  many potential uses, CMLC envisions
  a main-floor restaurant or craft
  brewpub and, on the lower level,
  a modern speakeasy.

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                                                                                   C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 0

  Developer                                 Residential                                Commercial

  Partner Activity                          With a persistently sluggish
                                            economy, rising interest rates
                                                                                       M2 by XYC Design + Development

                                            and CMHC’s increased mortgage              A new commercial development
                                            insurance premiums putting                 by XYC Design + Development
                                            continued pressure on consumer             is expected to break ground on
                                            spending, none of our key developer        Parcel M2 in Q2 2018. This project
                                            partners (Embassy Bosa, FRAM +             is being co-developed by CMLC
                                            Slokker, Knightsbridge Homes) is           and XYC Design + Development. To
                                            expected to launch a new residential       enable XYC to deliver the above-
                                            project in 2018. As such, we plan to       grade structure (with 21,000 SF
                                            reduce operating hours at the East         of commercial space), CMLC will
                                            Village Experience Centre (EVEC)           develop the project’s parkade, which
                                            in 2018.                                   we will later divest.

                                            We look forward to welcoming more          In November 2017, XYC issued
                                            new residents to East Village in Q4        a Request for Proposals from
                                            2018 with move-ins for FRAM +              prospective firms to design and
                                            Slokker’s 288-unit tower Verve and         construct the parking structure.
                                            Battistella Developments’ 119-unit         We will award the contract to the
                                            condominium project, Ink.                  successful proponent in Q1 2018. To
                                                                                       coordinate the two project teams
                                                                                       (CMLC’s team and XYC’s team) and
                                                                                       ensure smooth delivery, CMLC will
                                                                                       act as Project Manager (for which we
                                                                                       will earn a project management fee).

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 1

  The Corner by Interloq                    RioCan                                      ALT Hotel

  In November 2017, Interloq Capital        RioCan’s 5th & THIRD—180,000                As we prepare for more residents,
  Corp. submitted a development             SF of urban format retail space             we are also preparing for more
  permit to City of Calgary for Block B     anchored by Loblaws City Market             visitors as the ALT Hotel is scheduled
  (immediately east of Calgary Drop-In      and Shoppers Drug Mart—broke                to open in Q4 2018. Representing a
  Centre) with plans for a commercial       ground in April 2016. 5th & THIRD           private investment of approximately
  development to help activate the          will form the two-storey podium             $35 million by Groupe Germain
  riverfront. Called The Corner, it         for a $500 million retail/residential       Hospitalité and local developer
  includes a main floor restaurant          development that occupies a full            Homes by Avi, the 11-storey hotel
  as well as a food and beverage            East Village block—a strategic              will offer 155 pet-friendly rooms and
  hall that will accommodate 10-            partnership between RioCan and              5,000 SF of meeting space.
  12 tenants featuring a variety of         one of East Village’s founding
  cuisines and ethnicities.                 multifamily developer partners, Bosa
                                            Development, who will deliver two
                                            spectacular residential towers of
                                            500+ homes.

                                            In November 2017, crews completed
                                            construction of the project’s
                                            underground parking structure (four
                                            levels with 600 stalls). Construction
                                            will now move above ground to
                                            focus on the development of the
                                            two-storey retail podium scheduled
                                            to open to the public in Q1 2020.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 3

  Programming                               While CMLC’s efforts to develop
                                            infrastructure and attract residential
                                                                                         Once again, our goal in 2018 is to
                                                                                         attract more than 100,000 people
  & Community                               and commercial development                   to the community to witness and
                                            have dramatically elevated the               experience the transformation taking
  Building                                  connectivity and livability of East          place here. Especially in a year with
                                            Village and the Rivers District, our         no planned residential launches,
                                            ambitious focus on community                 quality programming and events will
                                            programming and events has played            be vital to building awareness of the
                                            a major role in connecting Calgarians        East Village brand.
                                            back to downtown Calgary’s east
                                            end and infusing the area with
                                            palpable, magnetic energy.

                                            In 2018, we’ll continue to build on
                                            our robust community programming
                                            by forging new associations and
                                            developing new programs with
                                            new community groups while
                                            sustaining our existing relationships
                                            and successes.

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                                                                                      C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 4

  Following are some of the exciting        Innovation Centre                             Victoria Park
  new opportunities Calgarians will see                                                   Engagement
  in 2018:                                  As we prepare to build the 9th
                                            Avenue SE Parkade spaces for                  As we prepare to deliver a master
  carya                                     opening in 2020, we will engage the           plan for Victoria Park and continue
                                            tech/tech support community along             to promote our vision for a Cultural
  Formerly operating as Calgary
                                            with Bow Valley College, New Central          and Entertainment District on
  Family Services, carya is a non-profit
                                            Library, National Music Centre and            downtown Calgary’s east end, we
  organization that seeks to engage
                                            Calgary Stampede to design new                will collaborate with the City of
  individuals, families and communities
                                            community programs with the                   Calgary, Calgary Stampede, BRZs,
  by creating environments that
                                            “programmers” (including “pop-up”             community associations and other
  support healthier individuals and
                                            exhibitions, classes and hands-on             local interests to create engagement
  address social and emotional
                                            learning opportunities).                      tools to tell the story of east Victoria
  problems that impact the standard
                                                                                          Park (including a website, video
  of living for many citizens.
                                                                                          animation, print pieces and so on).
                                            EV Junction
  carya is moving into East Village in
                                                                                          Throughout the period of public
  2018—first as operator of the K2EV        The highly successful “pop-up retail
                                                                                          engagement, we will develop and
  (Kerby2: East Village) temporary          experience” that CMLC launched in
                                                                                          implement programs that vividly
  seniors’ centre and then more             East Village in June 2017 will likely
                                                                                          illustrate the breadth and impact of
  permanently as the head lease             return in 2018 with expanded space
                                                                                          our placemaking approach. While
  tenant in East Village Place with         and new offerings. Using modified
                                                                                          many programs will be scheduled
  Calgary Housing Company.                  shipping containers, EV Junction
                                                                                          and promoted, we will also seek
                                            delivers a uniquely engaging
  carya’s intention is to create a                                                        ways to “pop up” in the community
                                            shopping experience with carefully
  space for people to come together                                                       in ways that engage residents and
                                            curated retail offerings and services
  in ways that promote wellness                                                           visitors while educating about our
                                            including fresh produce, street-
  and reduce social isolation. Their                                                      vision for Victoria Park.
                                            wise apparel, bicycle rentals, artisan
  planned programs and services             crafts, specialty food items and
  include child, youth, family and older    much more. In 2018, look for artists in
  adult counselling; group programs         residence, programmers in residence,
  that nurture personal growth,             cooperative markets and more.
  empowerment and well-being;
  community development programs;
  youth recreation and education; and
  much more.

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                                                                                      C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 5

  Community Safety                          Following are the measures we will            •    Deliver an annual online
  Program                                   implement (or begin to implement)                  community safety and security
                                            in 2018:                                           survey to those living, learning,
  Following a comprehensive 2017                                                               working and playing in the
  Community Safety & Security Review        •    Continue to work with Calgary                 East Village
  that included crime data analysis,             Police Service to keep local
  field observations, stakeholder                districts apprised of our                •    Consider design improvements at
  consultations and interviews, focus            redevelopment progress in                     C Square, Simmons Building and
  groups and a Community Safety                  East Village                                  Riverfront Lane to mitigate the
  and Security Survey of East Village                                                          storage of drug paraphernalia
                                            •    Establish a public awareness
  residents, CMLC developed a list of
                                                 campaign (“See something, say            •    Open a dialogue with the Drop-
  recommended actions to be taken
                                                 something!”) that encourages                  In Centre executive to identify
  (with implementation timeframes
                                                 residents and business owners to              an effective way to locate and
  ranging from less than six months to
                                                 report criminal activity                      discard syringes and other
  two years).
                                                                                               drug paraphernalia.
                                            •    Initiate more frequent security
                                                 patrols of the areas around
                                                 C-Square, the HI Calgary City
                                                 Centre hostel and C-train stations
                                                 to deter criminal and antisocial
                                                 behaviour and reduce the
                                                 public’s concerns

                                            •    Deliver a workshop on “skills
                                                 for living in an inner-city
                                                 neighbourhood” for area residents
                                                 and business owners

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                                                  C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 7

                                    CHAP TE R T WO
                             OUTSIDE THE RIVERS DISTRICT

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                                                                             C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 3 9

  Our Business Strategy
  Outside the Rivers District

  To create value (ROI) for CMLC and City of Calgary as     Through much of 2017, we worked with our Board of
  our Shareholder by strategically selecting real estate    Directors to explore and define a business strategy for
  development opportunities that not only support the       CMLC investment and development work outside the
  organization’s vision and mandate but also best utilize   Rivers District.
  our core competencies
                                                            Our strategic planning discussions centred on
                                                            establishing a framework for guiding our decisions and
                                                            actions outside the bounds of our original mandate.
                                                            Specifically, we worked to define CMLC’s market position
                                                            and ways of working as a development company, the
                                                            principles that will inform our investment decisions, our
                                                            expectations with respect to ROI, and our key measures
                                                            of success.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 0

  Our Environmental Scan                    What we learned                             Further, we learned that in our
                                                                                        philosophy and approach, CMLC is
  For context and perspective,              Assessing the similarities and              very much a “social purpose”
  we performed an environmental             differences among the organizations         organization in that we:
  scan of government-owned                  we interviewed helped illuminate and
  and regulated development                 reinforce CMLC’s core competencies          •    Pursue both profit and social
  organizations in Canada with a            and proven strengths:                            missions (e.g., environmentalism,
  focus on mandate, jurisdiction,                                                            urban renewal)
                                            •    Our ability to envision, master-
  financial strategy and investment
                                                 plan and execute redevelopment         •    Resemble regional/small-scale
  best practices. To gain deeper
                                                 and placemaking on a large                  developers in our organizational
  understandings of their operations,
                                                 (community-wide) scale                      structure
  approach and ROI expectations,
  we interviewed six organizations:         •    Our skills in place-brand              •    Employ special skills (for example,
  Build Toronto, Waterfront Toronto,             marketing and in using                      innovation) to achieve social aims
  Surrey Development Corporation,                programming and events to                   while maintaining profitability
  Waterfront Development (Halifax),              bring communities to life
  Centre Venture Winnipeg and                                                           •    Are not necessarily risk-averse
  Canada Lands Company.                     •    Our similarity to successful                nor risk-tolerant, but often require
                                                 private-sector development                  municipal cooperation through
                                                 companies in leveraging                     zoning, regulation or incentives
                                                 redevelopment to attract                    (for example, land parcels our
                                                 investment and activate assets              Shareholder deems surplus or
                                                 and amenities.                              difficult to develop yet critical to
                                                                                             stimulating investment or community
                                                                                             vitality need to be considered as
                                                                                             transferred assets (book value versus
                                                                                             market value) to CMLC to allow for
                                                                                             redevelopment)

                                                                                        •    Expect, at minimum, a financial
                                                                                             return of 5 to 7%. This is a directive
                                                                                             from CMLC’s Board of Directors,
                                                                                             which has prescribed a balanced,
                                                                                             pro-forma-driven portfolio approach
                                                                                             when considering new projects.

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                                                                                     C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 1

  As such, we saw fit to include            Entrepreneurial                              Community-minded
  “Community-minded” among our
  previously articulated core values,       Things happen quickly in our                 While operating profitably with
  as follows:                               world. We think on our feet, make            a view to being financially self-
                                            important decisions on the fly, trust        sustaining is important to our
  Innovative                                our experience and our skills. We act        company, profit is not our only
                                            like a small, private company and we         metric. Recognizing that the
  We operate on the basis of                feel like a perpetual startup. We like       citizens of Calgary are the ultimate
  international best practices, and we      it that way.                                 beneficiaries of our redevelopment
  are open to new and better ideas, no                                                   and placemaking efforts, a project’s
  matter where they come from. We           Passionate                                   capacity for social benefit is one of
  venture willingly into new territory.                                                  the things that drives and inspires us.
                                            We seek, above all, to make our
                                                                                         Measures of success in our pursuit
  Collaborative                             home, Calgary, a better place to live,
                                                                                         of social benefit include attracting
                                            and every member of our team has
  We have learned that we can best                                                       development and investment,
                                            personally bought into the value
  advance our projects when we                                                           elevating community brand and
                                            of the enterprise. So while we are
  engage other teams and groups                                                          reputation, improving quality of
                                            supremely professional, we are
  who have an interest in successful                                                     life, fostering a sense of ownership
                                            equally passionate. We care, and we
  outcomes. We share intelligence                                                        among residents and increasing
                                            seek to make the city a better place
  and opportunity.                                                                       participation (in volunteering,
                                            to live every single day.
                                                                                         program development, etc.) among
  Accountable                                                                            Calgarians. As we continue to work
                                                                                         within the spaces where the interests
  We hold ourselves to high standards
                                                                                         of the government, private and
  of transparency and expect the same
                                                                                         not-for-profit sectors intersect, we
  of our partners. We have spent the
                                                                                         will continue to hone our proven
  first 11 years of our existence earning
                                                                                         capacity for recognizing and
  the trust of our partners, and being
                                                                                         maximizing social benefit.
  scrupulously honest and accountable
  is the way we’ve done it.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 2

  Investment Principles                     As we have been discussing with             3. Maintaining control and visibility
  for Projects Outside                      the Mayor and members of City
                                            Council, CMLC is prepared to be             CMLC will maintain control over
  the Rivers District                                                                   costs, price and quality.
                                            strategically deployed to help the
  In our 2017–2019 Business Plan,           City achieve its long-term real
                                                                                        We will ensure sound financial
  we outlined the five Investment           estate strategy. In those endeavours,
                                                                                        management and due diligence
  Principles we used to prioritize          we will work collaboratively and
                                                                                        by adhering to approved processes
  spending of the remaining CRL             cooperatively with the City’s other
                                                                                        and basing decisions on timely,
  generation within the Rivers District     real estate departments (Urban
                                                                                        accurate data.
  (see page 22).                            Strategies, OLSH, RE&DS) to
                                            maximize the efficiency and success         We will also undertake socially
  In collaboration with our Board of        of administration’s city-building           and environmentally responsible
  Directors, we have articulated a          objectives.                                 projects with the power to transform
  companion set of principles that                                                      communities provided they include
  will further guide our investment         2. Achieving return on investment
                                                                                        approved processes that foster
  decisions outside the Rivers                                                          accountability and transparency
                                            Profit is not merely an objective but
  District, where investment cannot                                                     (e.g., public engagement).
                                            a requirement. We need to clearly
  be funded by CRL dollars but calls
                                            assess profitability with respect to
  instead for traditional forms of                                                      4. Ensuring alignment with CMLC’s
                                            CMLC’s operations and ensure, at a
  land development financing. Each                                                      strategic vision and capability
                                            minimum, a 5% return on investment.
  potential project will be evaluated
                                            For each potential project, we will         The projects we undertake must
  against four distinct criteria:
                                            perform a rigorous, pro-forma-              align with our company’s proven
  1. Maximizing Shareholder return          based analysis before seeking Board         competencies: brownfield/
                                            approval.                                   urban redevelopment, mixed-
  We will prioritize project investment                                                 use development (residential/
  that creates long-term viability          Unless we will realize a higher ROI
                                                                                        commercial/institutional),
  for Calgary’s urban communities,          in the long term, CMLC will not
                                                                                        infrastructure delivery, land strategy,
  supports the City of Calgary’s            play the “long game”; we will keep
                                                                                        branding and engagement, and
  objectives for urban densification,       our investment in a project for a
                                                                                        project management.
  placemaking and community                 maximum of five years.
  building, and considers future
                                            CMLC will charge a management
  dividend payments.
                                            fee of 2–5% for our expertise, to be
                                            negotiated per file.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 4

  Current &
  Potential Projects
  CMLC has targeted the following           School sites and similar                    Transit Oriented
  development work, which aligns            City of Calgary assets                      Development (TOD)
  perfectly with our capabilities                                                       Projects
  and knowhow:                              David D. Oughton (DDO) School
                                            site • In 2017, CMLC undertook              As the City of Calgary advances
                                            community engagement and studied            the Green Line program and other
                                            the development opportunity and             TOD sites and projects, CMLC could
                                            concepts for the 8.3-acre site at           capably take the lead in developing
                                            511 34th Street SE. In 2018, we             strategies and delivering these
                                            will prepare an Overview Plan               projects for the benefit of the City.
                                            that enables the ARP to support
                                            redevelopment. We will then wait for
                                            market conditions to improve before
                                                                                        Heritage Building
                                            marketing to attract a development          Adaptation and
                                            partner who can deliver on our              Repurposing
                                            visioning and engagement work.
                                                                                        We are prepared to analyze and
                                            While DDO is unlikely to return a
                                                                                        evaluate City-owned heritage
                                            profit for CMLC, our Shareholder
                                                                                        buildings and assets with available
                                            considers it an important catalyst
                                                                                        surrounding lands that can be
                                            project. Properly executed, DDO
                                                                                        reworked to create a catalyst for
                                            will signal to other landowners
                                                                                        community investment.
                                            and investors that the community
                                            is evolving. To align with our new
                                            Board-directed development
                                            principles and achieve the expected
                                            5% return on investment, we will seek
                                            to deliver the DDO project together
                                            with another project that can
                                            deliver profit.

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                                                                                 C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 5

  Industrial Lands                          Project Management
  5736 75th Avenue SE • For a parcel        CMLC has demonstrated our
  of land near the Calgary Film Centre,     ever-expanding expertise in                        DID YOU KNOW?
  CMLC has completed an early market        Project Management. More
                                                                                               Calgary’s Inventory
  investigation of the development          and more, groups like Calgary
                                                                                               of Evaluated Historic
  opportunity for condominiumized           Stampede, Zinc Ventures, Calgary                   Resources (a list of sites
  office/retail storage units. Again, as    Housing Company, Repsol Sport                      evaluated by the Calgary
  market conditions improve, CMLC           Centre, Calgary Bid Exploration                    Heritage Authority)
  will seek a developer partner for         Committee (CBEC), Calgary                          contains 839 heritage
  the site.                                 Economic Development and others                    buildings and sites.
                                            are turning to CMLC to provide
  We will continue to seek out other        strategic thinking and guidance on
  sites for similar purposes.               redevelopment and placemaking
                                            programs. Understanding our
  Community Interventions/                  value as developers and project
  West Village                              managers, we will seek out more
                                            contract opportunities as a means
  Redevelopment
                                            of maximizing our bottom line
  For communities deemed by the             performance.
  City to require special intervention
  through redevelopment and
  placemaking efforts: following
  strategic discussions with the City
  and the transfer of lands on terms
  favourable to CMLC, we would
  imagine and deliver master-planned
  neighbourhoods in a manner akin to
  our highly successful delivery of
  East Village.

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                                                              C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 7

                                 CHAPTER THREE
                          F I N A N C E & C O R P O R AT E S E R V I C E S

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 8

  Corporate                                 1. Governance and Policy                    Corporate governance plays
                                                                                        an important role in the way
  Services                                  CMLC’s Board of Directors continues
                                            to provide strong, committed
                                                                                        CMLC works with consultants
                                                                                        and stakeholders to deliver all
                                            leadership to the Company, and a            infrastructure projects, including
                                            subcommittee of the Board provides          the New Central Library and the
                                            specific governance leadership.             9th Avenue Parkade. To ensure the
                                            To further assist with governance,          success of all projects, we must
                                            additional subcommittees focus on           balance the needs and wishes of
                                            Compensation & Human Resources,             all key stakeholders with a strong
                                            Audit, and Environment, Health &            governance plan.
                                            Safety. In 2017, the Board approved a
                                            policy to limit Board members’ terms        CMLC will also work to formalize
                                            to create a balance of continuity and       our corporate responsibility plan to
                                            turnover.                                   ensure we exhibit consistent strong
                                                                                        values throughout our operations.
                                            At an operational level, CMLC’s
                                            management continues to update
                                            corporate policies and our employee
                                            manual as necessary. CMLC will
                                            continue to operate in a transparent,
                                            timely, efficient manner and in the
                                            best interest of our Shareholder, the
                                            City of Calgary.

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                                                                                    C M L C 2 0 1 8 B U S I N E S S P L A N U P D AT E   PA G E 4 9

  2. Strategic Planning                     3. Administrative                           4. Enterprise
                                               Operations                                  Risk Management
  CMLC’s Board and staff are
  committed to bringing ongoing value       A significant component of CMLC’s           CMLC’s Enterprise Risk Management
  to our Shareholder and ultimately         administrative operations involves          (ERM) program gives the organization
  the citizens of Calgary. CMLC             ongoing support of infrastructure           a systematic approach to managing
  continues to identify and evaluate        delivery, development deals and all         risk. The ERM program is embedded in
  strategic opportunities outside the       of our business units. We ensure our        CMLC’s business activities to enhance
  Rivers District. We offer a unique        development partners adhere to              effective project management,
  skill set and can apply the talents we    the master plan through the design          and it gives the Board, the senior
  used to stimulate redevelopment of        process, and we assist them in the          management team and the rest of the
  East Village in other parts of Calgary.   planning and permitting process with        organization improved risk information
  We have identified and discussed          the City of Calgary when necessary.         to support strategic decision making.
  with our Shareholder a number
  of strategic opportunities and            Other administrative operations             The ERM program gives us a platform
  redevelopment initiatives including       include ongoing information                 and process to consistently identify
  the David D. Oughton School               technology support; overseeing              and assess risks and a clearly defined
  site and the Film Centre lands.           all building operations; corporate          risk governance structure with
  CMLC is evaluating these potential        financial reporting and financial           clear roles and responsibilities and
  development options and will              analysis; contracting and purchasing;       clear alignment between strategic
  present our plans to the Shareholder      risk management; ongoing review             objectives and organizational risks.
  for consideration and approval as         of CMLC’s internal controls; and
  they are fully developed.                 formalization of CMLC’s operating
                                            best practices.

                                            CMLC management continues to
                                            develop a comprehensive Human
                                            Resources strategy.

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