In a bold strategic pivot, Calgary city officials are exploring innovative ways to accelerate neighborhood development without burdening the municipal coffers upfront. The initiative, revealed during Monday’s Infrastructure and Planning Committee meeting, aims to address the growing housing demand while carefully managing the city’s financial exposure in an increasingly competitive market.
“We’re witnessing a paradigm shift in how we approach community development,” explained Stuart Dalgleish, Calgary’s General Manager of Planning and Development Services. “The traditional models simply aren’t keeping pace with our population growth or market demands.”
The committee’s discussion centered around a proposal that would allow developers to build essential infrastructure in new communities before the city has secured all necessary funding—a significant departure from established practices. Under this model, developers would initially finance roads, water systems, and other critical infrastructure, with the city reimbursing costs as budget allows.
Calgary’s population has surged in recent years, creating intense pressure on housing markets and prompting urgent reassessment of development timelines. The city added nearly 35,000 new residents in 2023 alone, outpacing housing starts by a considerable margin.
Councillor Sonya Sharp, who has championed accelerated development, emphasized the economic benefits. “When we create bottlenecks in development, we’re essentially exporting investment and tax revenue to bedroom communities outside our jurisdiction,” Sharp noted during deliberations. “This isn’t just about housing—it’s about Calgary’s competitive position in the provincial economy.”
The proposal has garnered measured support from industry representatives. Jessica Karpat, representing BILD Calgary Region, called the initiative “a step in the right direction” but cautioned about implementation details. “The success of this approach hinges on transparent agreements regarding reimbursement timelines and risk allocation,” Karpat told committee members.
Not all councillors expressed enthusiasm, however. Concerns about potential financial exposure prompted several to request additional risk assessment before advancing the proposal. Councillor Kourtney Penner questioned whether accelerated development might create unrealistic expectations about municipal service delivery.
“Building neighborhoods faster doesn’t automatically mean we can provide transit, recreation facilities, and emergency services at the same pace,” Penner observed. “We need to ensure we’re not creating communities that lack essential services for years.”
The city’s administration anticipates presenting a detailed implementation framework by September, with potential pilot projects identified for 2025. The framework will include specific criteria for qualifying developments and mechanisms to ensure the city maintains financial discipline despite the more flexible approach.
Calgary’s housing affordability challenges mirror trends across major Canadian metropolitan areas, though recent data from the Calgary Real Estate Board indicates the city still maintains a competitive advantage compared to Vancouver or Toronto. The average home price in Calgary reached $557,000 in March 2024—a significant increase from previous years but still well below other major centers.
As Calgary continues navigating post-pandemic growth pressures, this development model represents just one facet of a broader strategy to balance housing supply with prudent fiscal management. The question facing council members now is whether this approach will successfully thread the needle between aggressive growth and sustainable development, or whether it risks creating future financial obligations the city might struggle to meet when economic conditions inevitably shift.
