First downtown development takes advantage of new tax incentive

The Targeted Redevelopment Incentive Policy (TRIP) was amended by Council in August of 2018 to promote new construction or major renovation of medium to large scale commercial, retail and mixed-use building projects that generate significant and ongoing expansion to the assessment base in the downtown core.

Urban Revitalization Manager Andrew Malcolm says the TRIP program is doing what it was intended to do when first passed by Council.

“The purpose is to create new developments in the downtown which grows our assessment base which means we get more taxes and it brings more vibrancy to the downtown core as more buildings are built,” he continued. “It’s a great policy and concept, and now we’re seeing it come to fruition with our first actual project being approved.”

How the development is expected to look when completed

Councillor Mark Campbell brought the resolution forward and was pleased to see the proposed project utilizing benefits that encourage a vibrant downtown.

“When Council amended TRIP last year, it was the hope of the policy to attract investment to our downtown. It’s thrilling to see the City’s downtown incentive programs being put into action and I’m excited to see how this redevelopment will look when it’s completed,” Campbell stated.

Now that the first developer has stepped up to the plate to take advantage of the incentive, Malcolm says there have been discussions about other developments in the downtown moving forward.

“I have the benefit of dealing with the developers ahead of any type of public announcements, so in talking with three or four other developments in the downtown right now, we’re very excited by what this incentive could do.”

Malcolm believes this decision is just building off of some momentum of late for the downtown, with lots of publicity over the Downtown Clean and Safe strategy and some of the work of the Lethbridge Police Service with The Watch program.

“People are in better spirits in the downtown. We feel like there’s a vibe that’s coming back and we’re excited to see people put their money where their mouth is in terms of downtown development which I think is going to get the ball rolling.”

Malcolm explained that getting positive development in that area is key for the City.

“Because it’s going to be very beneficial to the city since we have the new Park’ n’ Ride Transit Terminal opening up one block away, so this will build on that momentum. The City has invested money, and now the private side seems to be following suit.”

Mayor Chris Spearman says the incentive not only attracts investors to downtown, but it also supports efforts to realize the vision of the Heart of Our City Master Plan and Downtown Area Redevelopment Plan.

“This incentive supported the developer in going from a one-storey to a two-storey development, in addition to choosing higher grade materials and finishing on the exterior of the building which meets and exceed requirements for development in the downtown,” Spearman added.

The municipal tax cancellation incentive is based on the incremental change in assessment resulting from new construction or significant renovation, and proposed projects must meet several criteria to be considered.

by Aaron Mahoney

First downtown development takes advantage of new tax incentive

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