New incentives to develop vacant downtown lots

Developers who want to convert Saskatoon’s vacant downtown lots into office buildings may soon be eligible for cash grants.

While developers are currently eligible for tax abatements for up to five years for taking on infill projects, city administrators believe letting them apply for a cash grant instead would make the idea of converting vacant lots into commercial or residential spaces more appealing.

If approved by council later this month, developers could be eligible for grants of up to $200,000 to build commercial, industrial and mixed-use space; $75,000 to build multiple-unit dwellings such as apartment or condo buildings; or $15,000 to build one- or two-unit dwellings.

The city would determine how much money developers would get based on how well it scores their projects on a system that awards points for things such as providing public space and public parking.

The City of Saskatoon has long been trying to make infill development attractive. Between 2005 and 2015, about 17 per cent of homes built in the city were infill — a far cry from the 35 per cent the city aims to hit under its strategic growth plan.

Over the summer, the city held

two roundtable meetings to discuss ways to encourage more infill development.

As a result, the city plans to hire someone in its planning and development department to help coordinate infill and development projects and will launch a “cut the red tape” pilot project to remove barriers to infill development downtown.

This could include waiving requirements for developers to do comprehensive traffic impact assessments.