Calgary’s long-awaited Green Line is back in limbo after the Alberta government pulled its share of funding for the light rapid-transit project.

The province’s move comes after Calgary city council voted in July to shorten the lined to seven from 13 stations and increase the project’s budget to $6.2 billion from $5.5 billion.

Calgary Mayor Jyoti Gondek is now suggesting that the province should take over the project and be responsible for completing the project because the city can no longer afford the cost. City council has voted to direct staff to provide options by September 17 on how to wind down the project and turn it over to the provincial government.

As a result, announced and potential commercial real estate investments have been caught in the political crossfire. On August 1, Alberta Transportation Minister Devin Dreeshen told CBC that the province’s financial commitment was “100% secure.”

But he later sent a letter to city that contends the revised plan is unacceptable and the Green Line is “fast becoming a multi-billion-dollar boondoggle.”

In thinly veiled politicking, Alberta Premier Danielle Smith and Dreeshen have accused Calgary’s former mayor Naheed Nenshi of failing to manage the project during his time in office. Nenshi is now the leader of the Alberta NDP, the Official Opposition in the Alberta Legislature.

He has volleyed back at the United Conservative Party government in a written statement and comments to reporters.

“[Dreeshen has] basically set $1 billion dollars on fire through the cancellation of this project,” Nenshi told reporters.

In his written statement, Nenshi said the government is using Calgarians as a “political football” and has chosen to give up 20,000 jobs directly associated with the Green Line, including 1,000 people employed today.

“Not to mention all the private-sector jobs that will come from the redevelopment and densification of lands surrounding the future stations.”

Rendering: City of Calgary