Calgary’s downtown free fare zone is under scrutiny with two separate developments on the area transit corridor.

LWC has learned that the TD Bank Group has withdrawn from its five-year agreement with Calgary Transit to brand the area as the TD Free Fare Zone, effective Nov. 14. It was roughly three years into the agreement.

Calgary’s free fare zone stretches along 7 Avenue S between the City Hall / Bow Valley College LRT station and the Downtown West/Kerby station at 8 Street SW. Riders who both board and exit within this zone are not required to pay a fare. If riders enter or exit the zone from outside, a fare is required.

Calgary Transit confirmed TD had pulled out of the agreement, first announced back in December 2022. The deal was signed after a Request for Information (RFI) was released in 2021, according to the City of Calgary.

At the time, it was hailed as a way to generate non-fare revenue for Calgary Transit, though terms were never disclosed to the public.

“Today’s announcement is a big step forward for downtown and it is a big step forward for our city, as well as everyone who uses transit,” former Mayor Jyoti Gondek said at the time.

“This sponsorship agreement will provide TD a prominent footprint in the Downtown Core, while bringing in additional non-fare revenue for Calgary Transit.”

According to Calgary Transit, the original agreement included an option for early termination, and TD Bank followed the appropriate process as outlined in the agreement.

“TD Bank conducted a review of its sponsorship strategy and chose to end the TD Free Fare Zone agreement to focus on other partnerships that align with their changing priorities,” read a statement from Calgary Transit.

“The agreement formally ended on November 14, and the removal of signage referencing to the TD Free Fare Zone will be removed over the next few weeks, depending on weather.”

LWC contacted TD Bank on Friday afternoon for a response, and that was acknowledged on Saturday. LWC asked if the TD Bank decision was related to ongoing public safety challenges along the LRT line in the downtown. That question was not directly answered.

“We regularly review our sponsorship portfolio to ensure our current commitments are aligned with our evolving priorities and where we can deliver the most value,” read an email response from Mick Ramos, senior manager of corporate and public affairs with TD Bank Group.

“After careful consideration, we made the recent decision to end our existing agreement with the City of Calgary. We’ve appreciated the collaboration with the City over the last three years and wish them continued success in the future.”

Review of Calgary’s fare structure is underway

Meanwhile, a review of Calgary Transit fare structure has begun, and riders are being asked questions about the free fare zone.  Staff are interviewing commuters on platforms in the free fare zone between Nov. 15 and 30, according to Calgary Transit.

“The intention of this is to give us a snapshot of customer use of the CTrain downtown, including the free fare zone,” read a statement from Calgary Transit.

“We’re speaking with riders on weekends, evenings, peak times, and non-peak times. This is one of the inputs we’ll be using to confirm whether our fare structure is working, or if it needs changes.”

It’s part of a larger review that will be done over the next few months as Calgary Transit examines the fare system as a whole. It will include information on how Calgarians use transit, the factors they consider, patterns of use, and what does or doesn’t work for them when using transit. The review will also look at other payment systems available in Canadian cities.

“Our review will include engagement with our broader network of transit customers, Calgarians who don’t use transit, businesses, and other groups that are impacted by or interested in our products and services,” Calgary Transit said.

They were clear that this is very early in the review process, and there are no plans for changes to products or services until they have a deeper understanding of customer needs.

Ward 7 Coun. Myke Atkinson said that Calgary’s free fare zone is something that’s unique and special about the Calgary Transit system. Still, with the withdrawal of the TD Bank sponsorship, he understands why questions about the free fare zone’s future are coming up.

“But maintaining the fare free zone, I think, is incredibly important,” he told LWC.  

“The free fare zone along Seventh Avenue is a conduit that has always encouraged economic vitality in the downtown core. It allows people to meet. It allows people to travel around. It keeps cars out of our downtown and keeps things much more pedestrian-focused.”

Atkinson said that as the City continues its pursuit of a more vibrant downtown, adding more people and businesses, the free fare zone will play an important role in moving people around.

“People now living in the downtown, people not having vehicles in the downtown, right as we have more people move into East Village, the west end, throughout the commercial core, making sure that we’re not just adding to the glut of car dependency in this area is really, really important,” he said.