With the year coming to a close, Calgary Mayor Jyoti Gondek said she is focused on advancing the city’s economy and addressing social issues in the city in the upcoming year.
Speaking to Global News on Friday, Gondek said she is committed to the council’s downtown revitalization strategy to create a vibrant urban centre in the middle of the city.
The strategy will include converting thousands of former office spaces into residential units, which will not only drive the local economy but also address housing insecurity in the city. Gondek estimated that 777,000 square feet of former office spaces will be converted into approximately 700 residential units.
“We endorsed the downtown revitalization strategy back in 2021 and it was a partnership between many stakeholder groups. There were business owners, downtown advocates and our own administration,” Gondek told Global Calgary anchor Linda Olsen.
“They said investing money now would help us recover, and we stayed true to that mission and that vision.
“That’s a big change for us because downtown was primarily a place to work. Now it’s going to be a place where more people are living and it’s going to be more active… That’s meaningful to any city.”
Gondek also talked about safety concerns on public transit and downtown areas, which will also be acknowledged in the downtown revitalization strategy.
A recent ThinkHQ Public Affairs survey found that a majority of Calgarians perceive the city as less safe than it was three years ago. Around 53 per cent of 1,172 Calgarians surveyed said they feel less safe in the city, and 48 per cent of those surveyed felt that crime is high in the city today.
“(Projects like these) also get interest from government partners. I know the federal government is interested in seeing how they can assist with some of the revitalization plan,” the mayor said.
“The provincial government announced they would invest almost $200 million between Calgary and Edmonton to make transit safer and to help vulnerable people get to a better place.
“All of that impacts downtown and a growing city.”
Foreign investors interested in Calgary, said mayor
Canadian investors aren’t the only people who are interested in establishing business relations in Calgary, Gondek said.
Foreign investors, such as the U.S.’ film and television industry, are interested in setting up shop in the city as well.
Gondek said she spent much of the last year promoting Calgary’s economic development, tourism and business opportunities.
“We really try to get the word out about what Calgary has to offer not only from a visitor’s perspective but as a place to locate your business and bring people to live here,” she said.
“We have gone out to Toronto to talk about how (the tech industry) has taken off in Calgary, and I think we’ve been successful because we’re not talking about tech as a sector but how they are the new face of business in Calgary.”
The mayor also took a trip to Los Angeles this year to talk to film executives about producing movies and TV shows in and around the city. The upcoming HBO show The Last of Us was filmed in Calgary and other parts of Alberta.
“Most people down there know that we have film crews. We have on-camera and behind-the-scenes talent and we have the infrastructure that’s needed (to produce those films). It’s just promoting who we are,” Gondek said.
But a core part of those meetings is trying to rebrand the city’s image away from just cowboys and Stampede.
“I think the important thing for Calgary is to embrace the fact that we are diverse. There are many faces of Calgary. We’re the third most diverse city in this nation and most people don’t know that,” she said.
“It’s important to have different voices telling our story. It is a great idea to have someone who’s young and a newcomer to Canada saying that they feel welcome and that they belong here.
“It’s also equally important to have someone who’s had generations of family in this city say that they stayed here because it’s a great place to live. All of those voices need to be heard.”
Inflation is a huge concern
Despite the ambitious projects and goals for the next year, Gondek acknowledged that inflation is a huge concern for Calgarians who are looking to pay more in property taxes in the city’s upcoming four-year budget.
Property taxes will see an average annual increase of 3.7 per cent over the four-year term of the 2023-2026 budget, which was passed in November. The average single-family home in Calgary will see a property tax increase of 5.2 per cent next year, or $9.83 a month.
But Gondek said the city is looking to the federal and provincial governments for help funding projects such as the bus electrification strategy, which aims to replace up to 250 diesel buses with zero- and low-emission vehicles at the end of their life cycle starting in 2023.
City staff said they have filed an application to the Canada Infrastructure Bank for a $168 million loan, along with a $223 million grant from Canada Zero Emission Transit Fund (ZETF). The city will fund the remaining $100 million, staff said.
“The beauty of making this switch from diesel to the electric fleet is the savings and operations will actually pay for that conversion and it’ll pay the loan and the interest. We’ll be making a clean shift that pays for itself,” Gondek said.
Gondek also said the city is looking to re-evaluate how much property taxes businesses will have to pay. A decision will be made early next year.
“A few years back, roughly 55 per cent of the responsibility of the budget was on the business sector. We rectified that situation a few years back and we changed it to 48 per cent,” she said.
“But only 20 per cent of the revenue that’s generated from property taxes comes from these businesses, and when you consider that 95 per cent of our businesses are small businesses, they do need more equitable treatment.”
Alberta’s Sovereignty Act may be a challenge
Alberta’s new sovereignty act may propose a challenge for the city, Gondek said.
Bill 1, otherwise known as the Alberta Sovereignty Within A United Canada Act, was given royal assent on Dec. 15 by Lt.-Gov. Salma Lakhani. Premier Danielle Smith had promised to pass the sovereignty bill throughout her leadership campaign to push back on what Alberta believes is unconstitutional federal interference on provincial matters.
But the bill has received harsh criticism from members of the Opposition and Albertans. Most notably, Onion Lake Cree Nation has taken legal action against Alberta over the bill, arguing it breaches treaty and constitutional rights.
Gondek said the bill puts Calgary in an unfavourable position.
“The province is trying to deliver a message to the federal government that if you don’t engage with us in a meaningful way, we don’t wish to have laws enforced upon us that we believe are unfair. In that same vein, I would say that municipalities need to be heard by the province,” she said.
“We have asked for a long time to have a more fair deal for the city. To only have property tax as our certainty and predictability of revenue is really detrimental to our citizens.”
Gondek also said the city may be asked to defy federal orders as a result of Bill 1.
“If the provincial government says it doesn’t want us to do what the federal government is saying, we’re stuck in the middle, almost like two parents arguing and whatever decision we make will be the wrong decision for one order of government. That’s a very untenable position for us,” she added.
Mayor looking forward to a new year
But despite the challenges, Gondek said the past year has been a great lesson for her and her colleagues even though she got hate and harassment from constituents.
As the first female mayor of Calgary, Gondek said her experience has been “interesting.”
“One of the most meaningful things we’ve done as a council is use process and diligence to our advantage. We have said that this is how we do proper civil discourse,” she said.
“I think that type of structure and willingness to work together has been positive for us, even when we don’t agree with each other. When you are seen and heard and you’re able to vote in a disciplined way, you can still get the job done.”
Gondek encourages Calgarians to be compassionate and kind to each other going into the new year.
“I know it’s been tough, and I know you have been patient as we are coming out of some pretty tough times and I want to thank everyone for persevering through it,” she said.
“Let’s continue to be kind and compassionate to each other. There are great things on the horizon and we are heading that way together.”
–With files from Global News’ Adam MacVicar, Adam Toy and Meaghan Archer.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
