Four buildings in downtown Calgary will be torn down to make way for a 33-storey mixed-use tower, the first project under the city’s demolition incentive program.
The project along 4 Avenue SW between 5 and 6 Streets will introduce 340 rental units, including 50 affordable housing units, and a two-storey retail area with various commercial units.
During a media conference on Monday, Calgary Mayor Jyoti Gondek said that the city would be investing $176,000 through the Demolition Incentive Program, removing buildings that over the past 60 years served a professional services purpose, but are now vacant and targeted by vandals.
“Now, just as the original professional services which created and used the space since the 1960s and saw the potential of this area, we are honouring that vision as we look for a bold new future in this space,” she said.
The Downtown Office Demolition Incentive Program offers a grant of 50 per cent of demolition costs, not exceeding a rate of $15 per square foot to support the removal of buildings that can’t be converted to another purpose.
The grant is up to $3 million per property, according to the City of Calgary.
The approved application is for Edmonton-based Cantiro Group, and CEO Jodie Wacko said the incentive was a factor in helping move this project forward. He said there’s a real need for housing in Calgary, and they would have found a way to make the project work.
“What it does is it allows us to bring this in a much smoother, quicker process, and it takes off. One of the risks when you’re looking at acquiring one of these sites is the demolition. How do you get through it?” Wacko said.
“So, it all helps, for sure, and it’s actually important because it shows that the city is open for business and they’re understanding what needs to get done to get this housing built.”
Only project thus far awarded cash under the program
The program was meant to spur additional development in the downtown core by aiding potential developers with a portion of the redevelopment cost tied to demolition. The program, now nearly two-years-old, has only had the one application come forward.
Successful applicants receive the money after the project is complete.
“There’s limited opportunities for the types of buildings that are suitable for the conversion program,” said Thom Mahler, director of Calgary’s downtown strategy.
Mahler said there are ongoing conversations with others.
Mayor Gondek said that the removal of these buildings and the development of a new space would aid in public safety perception in the area as well.
“When you talk to members of the community, they will tell you that the more people you have engaged and active on the streets, in the parks and within the buildings, that adds the heightened sense of safety, and it certainly involves much more engagement between individuals,” she said.
“When you are taking properties like this that desperately need a lot of love, and ultimately taking them down to create something new that will have a mix of uses, you are adding to public safety, because you’re eliminating a place where no one is coming and is absolutely, ready for vandalism and the types of things that we don’t want to see in our city.”
The demolition on the site will begin in two weeks. It’s expected to last roughly four weeks.
According to Wacko, the project construction will take place over the next four years. The formal building process will go ahead in Q1 or Q2 in 2025.
“I can honestly say that all of the staff at the city have been great to work with, and they’ve helped facilitate this project,” he said.
“As opposed to looking at them as a regulator, they’ve actually brought solutions on how we can all meet that goal of bringing additional housing supply to downtown Calgary.”
The Downtown Demolition Incentive Program target area is between the CP rail lines to the south and 2 Avenue SW in the north, and from 9 Street SW to 3 Street SE.
