Council approves several redevelopment incentive projects

Promoting development and diversification of the local economy continues to be a priority for Lethbridge City Council. During its regular meeting on Tuesday, Council voted to approve several Targeted Redevelopment Incentive Program (TRIP) applications – which collectively could have a building construction value of $36 million.

Sumus Property Group Ltd. is proposing to redevelop four vacant lots (524/528/532 and 537/539/543 13 Street South, 605 5 Street South/510 6 Avenue South and 202 5 Street South) into mixed-use sites, each anticipated to be four to six stories with 30-35 residential units. Each building construction value is estimated at $9 million, so each project would qualify for an incentive period of nine years with the maximum TRIP Policy incentive of $2 million. 

Tuesday’s approvals were solely for the TRIP funding. Each of these proposed projects will still need to go through the zoning process and Public Hearings before being approved to build.

“These redevelopment projects and TRIP are great ways to stimulate economic growth, prosperity and diversification, while also having an impactful long-term positive return on investment,” says Mayor Blaine Hyggen, who led the recommendations at the July 11 Economic and Finance Standing Policy Committee meeting.

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 urban core. TRIP includes a tax cancellation of the municipal portion of the taxes based on the increased assessed value due to construction for a pre-determined amount of years which is based on the construction value of the project.

“When strategically developed, development-based grants and incentives have proven to be an effective tool in economic development in key strategic areas to yield in community return on investment,” says Crystal Scheit, Urban Revitalization Manager. “I commend Council for these approvals and look forward to seeing the vibrancy these projects will help create.”

The projects approved for TRIP on Tuesday are:

524/528/532 13 Street South

• The estimated value of the TRIP Policy incentive based on information provided in the application and administration’s projection is on average $68,000 annually, for a total estimated incentive reduction of $617,000 over the nine-year incentive period

537/539/543 13 Street South

• The estimated value of the TRIP Policy incentive based on information provided in the application and administration’s projection is on average $100,000 annually, for a total estimated incentive reduction of $904,000 over the nine-year incentive period

605 5 Street South/510 6 Avenue South

• The estimated value of the TRIP Policy incentive based on information provided in the application and administration’s projection is on average $102,000 annually, for a total estimated incentive reduction of $919,000 over the nine-year incentive period.

202 5 Street South

• The estimated value of the TRIP Policy incentive based on information provided in the application and administration’s projection is on average $121,000 annually, for a total estimated incentive reduction of $1,086,000 over the nine-year incentive period

The two 13 Street South proposed projects needed Council to make exceptions as they just outside the urban core, which includes Downtown Lethbridge, the Warehouse District and 13 Street North.