Downtown Development Incentives

The City of Fort Saskatchewan has established two new incentives to encourage multi-unit and mixed-use residential development in the city’s downtown core; a Brownfield Tax Exemption and a Downtown Development Grant. These new incentives were created in response to the Downtown Action Plan (adopted by Council in July 2021), that identified residential development as a key priority to supporting businesses in the area, and included the creation of development incentives among its 23 recommendations.

Available Downtown Development Incentives

Two incentives are now available to encourage new multi-unit and mixed-use residential developments in downtown Fort Saskatchewan. If the project property is eligible for the Brownfield Tax Exemption Program, it cannot also be eligible for the Downtown Development Grant. These two incentives cannot be combined.

Brownfield Tax Exemption

• Offers a 100% exemption on the incremental increase in municipal property taxes.
• Applies to new multi-unit and mixed-use residential development on qualifying Brownfield properties.
• Exemption is available for up to 15 years.
• Total exemption value is limited to 5% of the project’s eligible capital costs.
• Brownfield sites are defined as properties that:
  • Are, or may be, contaminated
  • Are vacant, derelict, or under-utilized
  • Have potential for redevelopment

Downtown Development Grant

• Provides a cash-based grant equal to 3% of eligible capital costs.
• Supports mixed-use or multi-unit residential development.
• Applies to downtown properties that do not qualify for tax exemptions.
• Grant is subject to conditions and is paid out after project completion.

Funding

Tax exemption certificates and incentive funding will be approved and allocated on a case-by-case basis subject to the approval of the Downtown Development Incentive Review Committee, until the budget has been spent or the program year has ended. Submitting an application does not guarantee a funding or a specific funding amount. All project proposals are subject to a comprehensive review of application and required information.

Eligibility

Each incentive program has its own unique requirements for the property and project. It is recommended that all potential applicants or interested parties schedule a pre-application meeting with member of the Downtown Development Incentive Review Committee before submitting an application. Please contact the City’s Economic Development Department at ecdev@fortsask.ca or by calling 780-912-2167.