The City of Calgary is expanding its Downtown Calgary Development Incentive program. The program will now provide grants to building owners the additional option for empty office conversion to hotels, schools and performing arts spaces.
Two new incentive programs have also been created, supporting office conversion to post-secondary institutions as well as office demolition for buildings that are not suitable for conversion or reuse.
City council approved the program expansion to encourage a more diverse mix of amenities and services downtown that will make the area more attractive to live in and visit. Collectively, the three incentive programs will support the revitalization of downtown through the creation of new housing, amenities, services and outdoor public spaces.
“What happens downtown has a direct impact on our city’s livability and economic success in terms of revenue, tax base and ability to provide services,” said Mayor Jyoti Gondek. “The Downtown Development Incentive Program has been incredibly successful so far and we are already one-third of the way to our 10-year goal of removing six million square feet of empty office space. As the demand for urban living remains high, the natural next step is to expand the program to develop both more residential units as well as projects that create amenities and services for residents close by.”
Revised Downtown Calgary Development Incentive Program will also see the program’s approval process streamlined by increasing the internal approvals threshold from $10 million to $15 million. This speeds up the approval process for larger projects (up to 200,000 square feet) by removing the need for council approval. Increasing this threshold reduces risk for applicants and speeds up project approvals.
The Downtown Post-Secondary Institution Incentive Program provides financial incentives for post-secondary institutions to establish a greater presence downtown. This would bring an influx of students downtown, which would support downtown’s vibrancy during all hours of the day, support existing businesses and would encourage new businesses to be established.
The Downtown Office Demolition Incentive Program incentivizes the demolition of buildings that are deemed ‘end-of-life’ and are not suitable for conversion or reuse. The program will support non-office redevelopment and the creation of new public amenity space. Currently, $3 million in funding exists for this program, and additional funding sources may be identified in the future pending grant interest and demand.
