Gondek says city council finds itself in a “very difficult situation” after Green Line derailment

Calgary Mayor Jyoti Gondek said city council was in a “very difficult situation” following the Green Line subway derailment.

City council has decided to end the long-awaited and much-feared project after the provincial government stopped funding.

Councillors cast their votes on Tuesday evening after almost a full day of debate and discussion.

The decision comes at a high cost – at least $2.1 billion.

But the city’s suffering does not end there.

In an exclusive interview with CTV News Calgary on Wednesday, Gondek said there are concerns about the legal ramifications:

“We are currently in an extremely difficult situation because our financing partner has terminated the project by ending their financing,” she said.

“We are the leading partner in all contracts, so we bear all the risks and responsibilities.

“That’s the hardest thing to deal with, knowing that the city had their name on every contract and was bearing all the financial, reputational and contractual risks associated with this project, and for the province to withdraw support in this way was incredibly reckless.”

Calgary Mayor Jyoti Gondek said city council was in a “very difficult situation” following the Green Line subway derailment.

Gondek added that there is uncertainty about the impact on tax rates:

“We won’t know what the impact of eliminating the Green Line will be until we start deliberating on the budget,” she said.

The provincial government’s decision comes after the reconstruction of the city’s Green Line actually involved an inflated price for fewer tracks.

Alberta Premier Danielle Smith said Wednesday that a lack of “political oversight” undermined the Green Line:

“I’m concerned that in the case of the Green Line there was no effective, coherent policy oversight,” Smith said.

“This is one of the reasons why the situation has gotten completely out of control.”

Smith believes this is a result of changes to the city council following the 2021 local elections.

In this vote, Gondek won the election for the most important position in the city.

“I think that’s where the fundamental problem started,” Smith said.

“I think decisions were made at the time that left many council members in a state of uncertainty.

“I think that’s one of the reasons why everything centered around one option (for the Green Line).”

Despite concerns about oversight and calls from city council members, Smith said the province will not take over the project.

“We want to be partners, but we don’t want to take over the public transport system,” she said.

“This needs to be rethought and we remain committed.”

With contributions from Camilla Di Giuseppe of CTV News Calgary and The Canadian Press