An effort to revitalize the Quarters neighbourhood directly east of Downtown Edmonton is projected to take longer to recover costs since its community revitalization levy (CRL) faces a funding shortfall of nearly $64 million. The CRL is a financial tool that allows the city to borrow money against future increased property tax revenues to fund improvements in an area. However, due to shortcomings in tax revenue, the Quarters CRL is now projected to recoup only $36 million by 2031 from future taxes.
Revenue Projections Decline
The revenue projection for the Quarters CRL has decreased by $17.9 million. According to a report prepared for city council in March, to repay outstanding charges, the period of increased taxes would need to continue until 2041, a decade after the CRL was set to end. The province approved the Quarters CRL in 2012. Since then, the city has spent around $100 million on improvements for the area, including upgraded drainage servicing, Kinistinâw Park, a "green street" project called the Armature, and conversion of some city-owned buildings into new art spaces.
Private Investment Attracted
According to the report, the city's spending has attracted more than $450 million in projects from private developers. However, due to the shortfall, the city will not be able to fund any more capital projects with CRL funding for the Quarters. Ward O-day'min Coun. Anne Stevenson noted on Tuesday that the public investments have not spurred the level of investment initially anticipated. She expressed cautious optimism about the future of the Quarters, pointing to the Belvedere CRL, which tracked a deficit for many years but is now on track to break even.
Community Perspectives
Colin Campbell, co-owner of arts venue Club 97 and executive director of CIVIQ Lab Society, both located in the Quarters, and a property manager with Five Oaks, highlighted the missing gap. He stated that private sector companies and developers want to come to the Quarters, but there is a lack of streamlined communication with all levels of government. Campbell noted that after 15 years of the CRL, there is ambiguity over whether the area is part of Chinatown or Downtown, and he has been unable to receive funding from the downtown action plan. He believes the Quarters could become a hub for arts, culture, and businesses, but the city's vision for the region is unclear, and private investors or small businesses are not being supported as they are in other areas near Downtown, such as the Ice District.
