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
Provides a 100% exemption of the municipal portion of property taxes on new multi-unit and mixed-use residential development on specific properties for a period of up to 15 years. The total value of the tax exemptions will depend on the capital costs to build the development and cannot exceed 5% of eligible capital costs. Brownfield sites are defined as properties that are, or could possibly be contaminated; vacant, derelict or under-utilized; and are suitable for development.
More on the Brownfield Tax Exemption
Downtown Development Grant
Provides a cash-based grant equivalent to 3% of the eligible capital costs to create a mixed-use or multi-unit residential development on properties in the downtown that would not qualify for the tax exemptions. The development grants will be subject to certain conditions and are paid out only once the project is complete.
More on the Downtown Development Grant
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.