LETHBRIDGE – The downtown core continues to see new development and investment as city council passed a resolution to approve a municipal tax cancellation incentive for a major redevelopment.
The owners of a vacant property at 608 – 5 Avenue South, applied to have their project considered for the tax incentive which would see more than $4.5 million dollars invested into the redevelopment. Coun. Mark Campbell brought forward the resolution.
“When Council amended the Targeted Redevelopment Incentive Policy (TRIP) last year, it was the hope of the policy to attract investment to our downtown,” said Campbell in a press release. “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.”
READ MORE: Red Deer’s massive market re-opens at original location
Council amended the Targeted Redevelopment Incentive Policy (TRIP) last August. TRIP promotes 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.
Mayor Chris Spearman says the incentive not only attracts investors to downtown, 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,” said Spearman.
The municipal tax cancellation incentive is based on the incremental change in assessment resulting from new construction or major renovation and proposed projects must meet a number of criteria to be considered. The development at 608 – 5 Ave. South was approved for a seven-year incentive period with an estimated tax cancellation of $680,000.00.