City should move fast on projects to benefit from downturn: mayor
BY GORDON KENT, EDMONTONJOURNAL.COMMARCH 12, 2009 4:07 PMBE THE FIRST TO POST A COMMENT
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Mayor Stephen Mandel
Photograph by: Walter Tychnowicz, Edmonton Journal
EDMONTON — Edmonton should take advantage of cheaper prices created by the economic downturn to move ahead with important infrastructure projects, Mayor Stephen Mandel said Thursday.
The cost of construction has dropped as much as 50 per cent from two years ago, with the price of widening and rehabilitating Whitemud Drive down about $80 million, he said in a speech to the Rotary Club of Edmonton.
“We need to move fast to take advantage of these conditions on capital projects, including new federal spending, and spend to speed up some critical infrastructure projects.”
Premier Ed Stelmach said earlier this week that he wants to look at borrowing at the current low interest rates to build public projects.
But Mandel warned the city must be careful about raising taxes to pay for more debt in case that slows the local recovery.
“I remain nervous about how much we are borrowing, and I think we need to be careful to pace our debt so we’re not incurring financing costs until we’re ready to spend the money.”
Mandel also brought up the City Centre Airport, saying people must look at the best way to use the site 30 years into the future, not just today.
But with other communities and provincial politicians wading into the debate, he emphasized the issue must be resolved in a way “that is in the best interest of all Edmontonians, and I repeat, to Edmontonians.”
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