Developers of new residential complexes in the city’s core will be eligible for a five-year tax break through a $22.9-million grant program from the City of Edmonton.

The Economic Recovery Construction Grant Program, approved 11-2 by city council Monday, will provide relief during the COVID-19 pandemic for eligible developers starting construction this year by freezing their property taxes until 2027. The intent of the program is to provide financial relief for construction projects in the city’s core that might not be able to proceed without that support. Councillors Mike Nickel and Jon Dziadyk voted in opposition.

For a $50-million residential condo building being constructed on a $5-million parking lot, this would equate to tax savings of about $891,000 over the five-year period. Qualifying projects must begin construction this year, cost more than $10 million and include at least 50 residential dwellings. Affordable housing and energy transition benefits will also be taken into consideration by the city during the application process.

With the program designed to bring growth to the core of the city, eligible projects must be built in a defined “Centre City” area, including Downtown and Oliver. The area is bound by 108 Avenue to the North, River Valley Road to the south and stretches from around 87 Street to just west of 124 Street.

Mayor Don Iveson said this program will help struggling developers and provide much-needed stimulus in the city’s core while creating jobs.

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