City council is looking at giving nearly $23 million in grants over four or five years to developers of major downtown projects starting construction this year.

City staff recommended council approve an incentive program that takes funds from reserves set aside to address the COVID-19 pandemic — in the Financial Stabilization Reserve — to help developers offset tax increases. The program would apply for major developments worth more than $10 million and offer at least 50 units of housing. Other options are being weighed and further recommendations are expected at the next council meeting.

Mayor Don Iveson said the plan appears to align with the need for swift action to keep plans to grow the downtown area on track.

“I think rumours of downtown’s demise are greatly exaggerated, however, if this is the antidote to the spread of those rumours by the injection of confidence, investment, jobs, eyes on the street, and ultimately more residents for baseload demand to support mom-and-pop retail, which is part of the life of downtown, all of that makes sense to me,” he said Monday.

But using the COVID-19 funds will effectively deplete all the money left in the COVID-19 account, leaving the city vulnerable to how it will face other economic issues in the future, like provincial budget cuts or helping vulnerable populations, the report warns.

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