Additional downtown conversion cash is welcome, according to one city councillor, as there’s a waitlist of potential development applications.
The City of Calgary said Thursday that they’ve received $52.5 million from Canada Mortgage and Housing Corporation’s Housing Accelerator Fund to restart the Downtown Development Incentive Program.
Under the program, eligible developers can get up to $75 per square foot for office-to-residential conversion projects up to a maximum of $15 million per property. It was first launched in 2021, with 11 developments approved under the program, with 1,500 new residential units created.
The first completed project, The Cornerstone, opened in April 2024. The program, however, was paused as demand for the incentive outstripped the available funding. The plan has received international attention, including an article in the Wall Street Journal.
“Transforming unused office space into homes for Calgarians is not only a practical solution but a transformative one,” said Mayor Jyoti Gondek.
“By partnering with the private sector, we’re boosting the number of downtown residents, energizing local businesses and enhancing public spaces. This initiative strengthens our economy, improves public safety and addresses the critical need for housing.”
Coun. Terry Wong, whose Ward 7 covers much of the downtown, said this was a good news story for the downtown.
“Well, certainly we’re looking to expand our residential population in the downtown core,” he said.
“There’s a waiting list of applications out there, so additional funds allow us to come to the marketplace a lot faster.”
Wong also said that the Downtown Strategy prescribes a greater emphasis on providing amenity space to go along with the added residential space. They also want to encourage more office-to-hotel conversions and post-secondary spaces in the downtown.
“There’s a great focus right now looking at amenity space, particularly in the downtown west side of the equation, whether it be at Century Gardens or the Lot 6 parking lot; there’s many things being considered,” Coun. Wong said.
Thus far, $147 million has been invested in the Downtown Development Incentive Program. It’s one of four programs to incentivize redevelopment in downtown Calgary. The City of Calgary also has a demolition incentive program, which was applied for the first time earlier this summer.
Developers may also apply for grants for post-secondary campuses and the maintenance of Plus-15 infrastructure.
Applications for eligible projects will be accepted from Sept. 19 to Oct. 31, 2024. More information can be found at the City of Calgary’s website.
