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UNDERSTANDING KEY ISSUES AROUND GROWTH AND DEVELOPMENT IN CALGARY

A Smarter Growth Initiative Publicationsmartergrowth.ca

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Powered by a booming economy, Calgary is growing

by nearly 40,000 people each year.

What will it mean for our city? Where will the

houses go? How will we pay for growth?

The Smarter Growth Initiative is dedicated to raising

awareness of critical challenges facing our city.

LEARN MORE AT SMARTERGROWTH.CA

This report was prepared by the Smarter Growth Initiative, a collaboration between

the Urban Development Institute – Calgary and the Canadian Home Builders’

Association – Calgary Region.

Calgary is one of the fastest growing cities in North America. That can be both good

and bad. A smart approach to growth will ensure that we continue to be one of the

most livable cities in the world.

A recent survey* of 1,200 Calgarians showed that many residents consider

themselves under-informed on issues surrounding our city’s expansion. The Smarter

Growth Initiative was established to educate and engage Calgarians in dialogue

around trends and issues in urban planning and development.

We invite you to join the conversation.

Our goal is simple: raise awareness among Calgarians about growth and development challenges.

IT’S YOUR CITY

*Calgary Growth Benchmark 2014

TABLE OF CONTENTS6 CONTINUED GROWTH

8 SMART GROWTH

10 COMPLETE COMMUNITIES

14 REDEVELOPMENT

20 PLANNING PROCESS

22 CALGARY’S ECONOMIC PROSPERITY

24 THE COST OF NEW COMMUNITIES

26 CONNECTING COMMUNITIES

28 DEFINING OUR FUTURE

30 GET INVOLVED

Great places To live

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1984 2014 2041

2.4M

1.2M

600K

Calgary is growing by tens of thousands of people every year, with no sign

of slowing down. By 2041, the Calgary Region will be home to 2.4 million

people – roughly 41% of Alberta’s population.

And that’s good news. A robust economy drives population growth, and

Alberta’s economy has grown at double the rate of the Canadian average

over the past three years, according to Alberta Treasury and Finance.

People will be coming from all over Canada and all over the world, because

our thriving economy creates jobs.

They’ll all need somewhere to live.

View the full Province of Alberta 2014 – 2041 Population Projections Report at smartergrowth.ca

CONTINUED GROWTH

Calgary’s population doubled in the last 30 years and will double again in the next 30.

POPULATION EXPLOSION

BY 2041, THE CALGARY REGION WILL BE HOME TO 2.4 MILLION PEOPLE.

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GROWING SMARTER

A little density, a lot of sustainability.

In the past, Calgary’s population bursts have sometimes

felt like a mad scramble as housing struggled to keep

up. Luckily, Calgary has always had vast spaces to grow

into while maintaining our renowned river pathways,

abundant parks and vigorous industry within existing

city limits.

Until recently, that planned expansion outward was

believed to be the best thing for both housing

affordability and infrastructure efficiency. Now,

governments and the building industry agree that in

SMART GROWTH

order for growth to be sustainable, we must also include

redevelopment of existing communities.

Over the past decade, Calgary’s urban expansion has

shifted to include a balance of increased density in

both established and new communities. While gains

in population have remained relatively steady, our

consumption of new land has dropped dramatically.

Innovative approaches to development make the most of

Calgary’s urban footprint.

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

POPULATION INCREASE URBAN AREA INCREASE

2001–20111991–2001

23%25%

12%

41%

CALGARY’S URBAN EXPANSION HAS SLOWED AS COMMUNITIES BECOME DENSER

View the full research “Rethinking Sprawl” at smartergrowth.ca

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Better quality of life in complete communities.

Smart growth refers to development practices

that enhance quality of daily life, curb unnecessary

expansion, preserve the natural environment and save

money over time.

The key? Concentrate growth in hubs, slating land for

a variety of uses and diverse dwellings. Design homes

and streets on a human scale, not on a car scale. Allow

people to live close to where they work. And plan for

active transportation like biking and walking, as well as

proximity to mass transit.

These are called complete communities, and it’s not

a new idea. Many of Calgary’s older neighbourhoods

like Kensington and Inglewood, and more and more

Today’s new neighbourhoods have been conceived as complete

communities. Seton, in south Calgary, is an example of this. It’s compact

and walkable, with a mix of housing, shops and restaurants all centred

around the economic activity generated by the South Health Campus.

Other innovative development projects include Currie Barracks, Walden

and the University’s West Campus.

Great places to live, work and play

COMPLETE COMMUNITIES

newer developments like Garrison Woods and McKenzie

Towne, boast an impressive mix of commercial,

residential and recreational spaces.

Calgarians, city planners and the development industry

have a renewed desire for these types of communities.

The benefits are staggering. Study after study shows

intelligent urbanization leads to better health, stronger

economies, more safety, less pollution, more local food

sources and improved social and family ties.

RESIDENTS OF COMPLETE COMMUNITIES USE UP TO 2/3 LESS ENERGY FOR TRANSPORTATION.

View the full research “Smart Growth Primer” at smartergrowth.ca

The Oxford dictionary describes “urban sprawl” as “the uncontrolled

expansion of urban areas.” It has also been described as outward

expansion that outstrips population increase.

Calgary has never been the model of urban sprawl despite our rapid

growth. We are a young city growing within planned borders to

accommodate increasing population without losing valuable amenities

like our parks and pathways.

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A FINE BALANCE BETWEEN

UP AND OUTWe need both. It’s just as important to add to established

communities as it is to build new ones.

A recent City of Calgary report calculates that 15%

of our currently developed areas are underutilized,

and it’s good thinking to maximize what we have by

promoting “densification.”

The City of Calgary’s Municipal Development Plan calls

for an additional 190,000 people to be accommodated

within established communities over the next 25 years.

REDEVELOPMENT

UP TO 190,000 PEOPLE WILL NEED TO FIND A HOME IN OUR ESTABLISHED COMMUNITIES OVER THE NEXT 25 YEARS.

View the full City of Calgary “Municipal Development Plan” at smartergrowth.ca

IN 25 YEARS IN 50 YEARS

THE CITY OF CALGARY HAS THE GOAL OF ACCOMMODATING:

View the full City of Calgary report “Developed Areas Growth and Change” at smartergrowth.ca

67% 50%33% 50%

That’s 1/3 of all new population. And in the next 50

years, fully 1/2 of ongoing growth will be absorbed into

established communities. That’s what we mean

by densification.

Of course we can’t fit everybody into the neighbourhoods

we’ve already built, but we are already moving toward

optimizing our urban footprint.

% OF POPULATION GROWTH IN NEW COMMUNITIES

% OF POPULATION GROWTH WITHIN ESTABLISHED COMMUNITIES

% OF POPULATION GROWTH IN NEW COMMUNITIES

% OF POPULATION GROWTH WITHIN ESTABLISHED COMMUNITIES

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6,700 3,300 5,200

HOUSING ADDED IN THE PAST 5 YEARS TO ESTABLISHED COMMUNITIES

DETACHEDHOUSING

SEMI-DETACHEDHOUSING

MULTI-FAMILY HOUSING

View the full City of Calgary report “Development Areas Growth and Change” at smartergrowth.ca

There is ample opportunity to achieve our city’s densification goals. Zoning bylaws

will need to be adjusted to encourage dwelling diversity throughout Calgary. We’re

already making real progress.

In the past five years, 1/3 of new housing units were built in established communities.

That made room for 13,000 people and marks the first time these neighbourhoods

have grown in 12 years.

Residents tend to resist increased density because sometimes it can mean congested

roads, reduced green space, over-stressed infrastructure and decreased affordability.

Sensitivity to all aspects of densification will drive the best overall results.

It’s a delicate balance. We also need new, complete communities, with built-in density

and supporting infrastructure to prepare for rapid population growth in a measured,

considered way.

We need to expand in the healthiest of ways – up, in and out.

As the saying goes, “It doesn’t matter where the toilet flushes.” In other words,

infrastructure has to support increased population density wherever it happens.

If existing services are inadequate for a proposed inner city development, the

surrounding infrastructure must be upgraded. In some cases, that’s more expensive

than creating new infrastructure. To maintain balance and affordability, we’ll need

to grow up and out.

IS MORE DENSIFICATION THE MOST ECONOMICAL OPTION?

HOW WILL WE STRIKE THE RIGHT BALANCE?

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WE NEED SMARTER GROWTH FOR AN EVEN SMARTER CITY.Get engaged and explore more planning and development issues at smartergrowth.ca

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We all are. Many voices are heard in the planning process.

WHO’S RESPONSIBLE FOR ENSURING SUSTAINABLE GROWTH?

PLANNING PROCESS

PROVINCIAL MUNICIPAL

GOVERNMENT ACT

OUTLINE PLAN / LAND USE

APPLICATION

CONSTRUCTION SPECIFICATION AND

PLANNING POLICIES REVIEW

PUBLIC INPUT

PUBLIC INPUT

PUBLIC INPUT

GROWTH MANAGEMENT

ANALYSIS

AREASTRUCTURE

PLAN

DEVELOPMENT AND BUILDING PERMIT REVIEW

CITY COUNCIL /CALGARY PLANNING

COMMISSION APPROVAL

MUNICIPAL DEVELOPMENT

PLAN

KEY INPUTS IN THE

PLANNING PROCESS

Layers of innovation, influence, checks and balances

all contribute to planning Calgary’s urbanization.

The process is lengthy and complex – so lengthy and

complex that The City and the Federation of Calgary

Communities have published a 211-page Community

Guide to the Planning Process.

First comes Alberta’s Municipal Government Act (MGA)

to guide how municipalities operate. It includes rules

that affect us every day, like land development and

services funding.

The MGA spawns a host of other frameworks and

plans, including our own Municipal Development Plan

(MDP). It contains policies that will shape our growth

and development over the next 60 years or so. Our

most recent MDP was developed after consultation with

Calgary residents. Finalized in 2009, it sets out a long-

term direction for the growth of Calgary by 1.3 million

people in the coming decades.

From there it’s a maze of area plans, analysis,

applications, permits and approvals.

So where do you fit in? Public consultation happens

throughout the process. Your community association will

advise you on input opportunities. There are site notices,

public hearing notifications sent in letters, information

on The City’s website and newspaper ads for all to see.

There are multiple ways to join the conversation.

THE PROVINCIAL AND MUNICIPAL GOVERNMENTS, THE BUILDING INDUSTRY AND PUBLIC INPUT ARE ALL PART OF AN EXTENSIVE AND COMPLEX PLANNING PROCESS.

View the “Community Guide to the Planning Process” at smartergrowth.ca

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SUCCESS Let’s stay one of the most livable cities in the world.

Since January 2013, Alberta has accounted for 56% of

all jobs created in Canada, according to Alberta Treasury

and Finance. The jobs are here, but that’s only part of a

city’s story.

All these newcomers that we’re welcoming need

somewhere to lay their heads. It makes sense that

housing enables economic prosperity. After all, workers

can only come to Calgary if they have an affordable

place to live.

But we want them to do more than just live. To guarantee

the enduring success of our city, we want them to feel

CALGARY’S ECONOMIC PROSPERITY

DESIGNED BY

at home. Their investment of heart and soul in Calgary’s

continued success will write the rest of the story.

Calgary’s building industry supports our economic good

fortune by imagining and building communities where

infrastructure refers to more than just roads and water. It’s

a network of relationships, an opportunity for collaboration,

association and innovation.

Our smart growth can build an even smarter city.

5th Most Livable City in the World Economist Intelligence

Unit, 2013

2nd Overall Best CityLarge North American

Cities of the Future

fDi Magazine, 2013

2nd World Prosperity RankingToronto Region Board of

Trade, 2014

Canada’s Best Place to Raise KidsMoneySense Magazine,

April 2014

Calgary is:

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Building new communities is costly. In addition to their homes, future residents

need roads to drive on, sidewalks to walk on, water to drink, electricity to power

their lives and cables for communicating. They need parks, sites for schools, trees

and fences.

Developers make the initial investment in all the on-site improvements within a

new community, and naturally, those costs are passed on directly to buyers of the

new homes.

Who’s paying For growth?

New homebuyers are. They pay 100% of the cost of building new communities.

THE COST OF NEW COMMUNITIES

PLANNING, ENGINEERING AND DESIGN

ELECTRICITY, GAS AND CABLE LINES

ROADS, LANES, CURBS, BOULEVARDS, BUS STOPS

AND STREETLIGHTS

WHAT NEW HOMEBUYERS ACTUALLY PAY FOR:

PARKS, PLAYGROUNDS, PATHWAYS AND

OTHER AMENITIES

WATER, SANITATION AND STORM SEWER SYSTEMS

BEAUTIFIED STREETS AND SCHOOL SITES

THEIR HOME

NEW HOMEBUYERS PAY FOR100% OF CONSTRUCTION COSTS WITHIN NEW COMMUNITY BOUNDARIES.

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New communities have to be connected to Calgary’s

existing infrastructure by roadways, utility systems and

transit lines. And they need services like fire, waste

management and police.

These are known as “off-site” costs. Getting all of that

started is expensive, and it all needs to be maintained.

So who pays off-site costs, and when?

Taxes and levies are set by The City of Calgary, and are

paid by developers to offset a significant portion of

the connection costs. Levies work out to wan up-front

investment of roughly $17,000 “per door”, based on

the current acreage assessment and density of an

average community.

New residents pay their share, and we all pay taxes.

CONNECTING COMMUNITIES

These taxes and levies are paid many years in advance

by developers. The funds are controlled by The City and

allocated to infrastructure priorities as Council sees fit.

Developers are legislatively required to dedicate 10%

of developable land to The City for things like parks

and schools, and designate approximately 30% of land

for utilities and roads.

Eventually, when homes are purchased, new homebuyers

compensate developers for up-front costs. Then, like the

rest of us, new residents add to the property tax pool,

contributing to surrounding infrastructure capital and

maintenance costs.

INFRASTRUCTUREIMPROVEMENTS

TOWARD NECESSARY INFRASTRUCTURE OUTSIDE OF NEW COMMUNITY BOUNDARIES.

DEVELOPERS INVEST APPROXIMATELY

$17,000 “PER DOOR” FIRE WASTE

MANAGEMENTPOLICEROADWAYS UTILITY

SYSTEMTRANSIT

LINES

Off-site costs are incurred when new communities are connected to existing services

WHAT KIND OF CALGARY DO YOU WANT?

You’ll define Calgary’s communities.

Community plans and home designs are based on the

desires of homebuyers. The City of Calgary, developers

and builders listen to Calgarians, comb the world for best

practices and innovate in award-winning ways.

They’ll continue to listen as demographics and trends

change. We know now that seniors want to stay in their

neighbourhoods, but maybe in a new type of dwelling

and with assistance. Millennials, as a whole, avoid car

DEFINING OUR FUTURE

ownership and want to live near transit. Many of us want

enough room to include our extended families. There’s a

lot to learn from Calgary’s residents.

Based on feedback from today, tomorrow’s communities

will continue to evolve to meet the vision of Calgarians.

Over the next 30 years, we’ll all be part of exciting

changes that are needed for our growing population.

t

View the “Calgary Growth Benchmark 2014” report at smartergrowth.ca

View the “RBC-Pembina Home Location Study” at smartergrowth.ca

62% 16% 22%

PANTONE 3262 C

DETACHEDHOUSING

SEMI-DETACHEDHOUSING

MULTI-FAMILY HOUSING

WHAT MOTIVATES HOMEBUYERS?

/ 79% / 54%/ 81%WALKABILITY OR

SHORT COMMUTESAFFORDABILITYCOMMUNITY

AMENITIES

WHAT ARE CALGARIANS LOOKING FOR?

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BE PART OF AN EXCITING FUTURE

Stay informed and lend your voice to the dialogue.

Becoming familiar with topics surrounding planning and development is

critical for all of us. We invite you to participate in the creation of a smarter city

that’s prepared for a thriving future.

Stay informed on issues facing a booming Calgary. Get to know your City

Councillor, talk to your friends and attend open forums and public consultations

– it’s yours to build.

The Smarter Growth Initiative is here to provide balanced information on issues

and planning trends in Calgary. Join the conversation at smartergrowth.ca and be

part of a bigger, smarter tomorrow.

GET INVOLVED

VISIT US AT SMARTERGROWTH.CA

PAYING FOR GROWTH

Understanding exactly who

pays for our city’s growth is

critical for all of us. See the

balance sheet for yourself and

learn where you fit in – you

might be surprised.

LAND SUPPLY

More people means more

housing. How much more? And

where? Researchers are working

full time to make forecasts and

create land supply strategy.

Here’s what they know. Find out

what they’re saying.

REDEVELOPMENT

Redevelopment is part of a

city’s evolution, even in a young

city like ours. Take a good look

from all angles - up, out and

underground. With some good

thinking, we’ll make Calgary a

model of intelligent urbanism.

COMPLETE COMMUNITIES

Intelligent urbanization leads

to better health, stronger

economies, more safety, less

pollution and improved social and

family ties. Learn more about

complete communities and how

they are catching on in Calgary.

PROCESS

Creating dynamic communities

where Calgarians can thrive is

a complex process. You may

see a great house in a great

neighbourhood, but what don’t

you see? Discover what it really

took to catch your eye.

MARKET DEMANDS

Our population is not only growing

– it’s changing. Naturally, not

everybody wants the same thing

when it comes to housing. Learn

how demographics are promoting

versatility in Calgary’s dwellings and

what it means to stay affordable.

DRIVEN BY DEMAND

RAISING A SMART CITY

WHO PAYS FOR WHAT AND WHY?

LOVE WHERE YOU LIVE

THE CHANGING FACE OF CALGARY

FROM DIRT TO DOOR

UPCOMING PUBLICATIONS

NOTES NOTES

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Alberta Cities at the Crossroads, University of Calgary 2014

Calgarians Deserve Variety in Housing, Calgary Herald 2014

Calgary Growth Benchmark, Think HQ 2014

Calgary Headed to 2.5M, The Calgary Herald 2010

Calgary Rankings, Calgary Economic Development 2014

Calgary Snapshots 2014, City of Calgary

Cities, Scaling and Sustainability, Santa Fe Institute 2014

Collective Vision, Business in Calgary 2014

Community Guide to the Planning Process, Federation of Calgary Communities 2012

Developed Areas Growth 2014, City of Calgary

Economic Spotlight, Alberta Treasury and Finance 2014

Housing White Paper, Calgary Economic Development 2014

Main Streets Make a Comeback, The Globe and Mail 2013

Municipal Development Plan, City of Calgary 2009

New Home Market Trends, CHBA 2014

Population Density in Calgary Neighbourhoods, Calgary Herald

Population Overview, Calgary Economic Development 2012

Population Projection, Alberta Treasury Board and Finance 2014

RBC Pembina Home Location Study 2012

Rethinking Sprawl, Neptis Foundation 2014

The Role of Urban Parks for the Sustainable City, Science Direct 2004

Shift Happens, BILD 2012

Shifting Horizons, City of Calgary 2011

Smart Growth Primer, Smarter Growth British Columbia 2000

The Value of Investing in Canadian Downtowns, Canadian Urban Institute 2013

RESOURCES

VISIT SMARTERGROWTH.CA AND BE PART OF A BIGGER, SMARTER TOMORROW.

Copyright 2014 by the Smarter Growth Initiative

Permission is granted to the public to reproduce or disseminate this report, in part or in whole, free of charge, in any format or medium without requiring specific permission. Any errors or

omissions in this report are the responsibility of the Smarter Growth Initiative.

THE SMARTER GROWTH INITIATIVE IS A COLLABORATION BETWEEN THE URBAN DEVELOPMENT INSTITUTE – CALGARY AND THE CANADIAN HOME BUILDERS’

ASSOCIATION – CALGARY REGION.

A Smarter Growth Initiative Publicationsmartergrowth.ca