Downtown office vacancy is at approximately 12 million square feet which translates into approximately 30 percent. As downtown office vacancy rates continue to rise, the impacts are far-reaching. The status quo scenario is the biggest risk to downtown vibrancy, Calgary’s economic competitiveness, and fiscal sustainability. Downtown office property values have declined by $16 billion since 2015, or 60 percent, resulting in the tax shift situation that affects City finances and residential, commercial, and industrial property taxes throughout the city.

The City worked in collaboration with industry experts including Calgary Economic Development’s (CED) Real Estate Sector Advisory Committee (RESAC) and the Real Estate Working Group (REWG) to develop an incentives package for downtown office conversions, office replacement, and new residential development.

Converting office to residential uses is complex and expensive, with incentives being required to stimulate investment. The City and its private sector real estate partners have identified 28 potential downtown office buildings for conversion or adaptive reuse. This could include conversion to or reuse as residential units, student housing, senior housing, post-secondary institutions, and the amenities needed to establish complete, thriving neighbourhoods.

Residential development in the downtown core often includes the requirement to contribute to the Plus 15 Fund, which supports construction, operation, and maintenance of downtown’s Plus 15 system. This can create a potential financial barrier to residential development in the downtown core.

The City will provide $5 million in incentives to developers who initiate residential projects in the downtown core to offset any required Plus 15 Fund contribution, up to $1 million per project. This removes a potential barrier for new residential development as well as any additions to existing buildings to accommodate new residential use. Projects must be completed within a designated time period to receive the incentive.

Implementing the Greater Downtown Plan means allocating $55 million immediately for impactful projects, big and small, which move the plan from from a planning document to real actions. We’ve identified downtown vibrancy projects that contribute to one or more of the following objectives:

• Activate public places and spaces
• Catalyze private investment in the Greater Downtown
• Increase attractiveness of public spaces to Calgarians
• Allow The City and our partners to pilot, experiment, & prototype longer term projects
• Promote tourism and increase visitor numbers to the Greater Downtown
• Enhance safety & security for residents, workers, and visitors

We are considering the following projects that would improve vibrancy in Calgary’s downtown:

• Future of Stephen Avenue
  • Create short and long-term strategies that can be implemented over time to make Stephen Avenue better for Calgarians and visitors, while creating opportunities for private investment and redevelopment.
• Downtown West Promenade from the Peace Bridge to 14 Street S.W.
  • Create a gateway to the Bow River and river pathway system in Downtown West
  • Extend pathway and public space improvements already in place or being built in Eau Claire, Chinatown and the East Village
• 8th Street S.W.
  • Improve north-south connections from the Bow River to Downtown West and the Beltline
  • Redesign and rebuild public spaces to support residential, retail, and commercial growth in the Downtown Core and Downtown West
• Establish a downtown public market
  • Create a sustainable public space that reflects the surrounding communities and The City’s social, environmental, economic and cultural priorities
• Renovate Northwest Travelers Building and Historic Firehall #1
  • Redevelop for food and beverage and arts and culture development
• Redesign and rebuild Olympic Plaza
  • Re-imagining our Olympic legacy by renovating the living room for City Hall and Arts Commons

Activating places and spaces is essential to increase downtown vibrancy and make downtown a place that people want to live, visit, and establish a business. The City is setting aside funds to support and enable our downtown partners plan and execute vibrancy-building programming and events.

This includes support for the implementation of Tomorrow’s Chinatown cultural plan, along with the 9 Block Program, which supports safety, security, and vibrancy around City Hall and Stephen Avenue.

Additional programming and events that will be supported will be determined in consultation with our downtown partners, business improvement areas, and community associations.

To activate the Greater Downtown Plan move forward with the actions and projects that have been identified as priorities to shifting the downtown from vacancy to vibrancy, The City will allocate resources to a team dedicated to moving the actions required through this investment package forward.

For the last 35 years, Arts Commons has been a key contributor to social, economic, cultural, and intellectual life in Calgary. As Canada’s third largest arts centre, it is home to six resident companies and used by over 200 community groups.

The Arts Commons Transformation (ACT) project of expanding and upgrading Arts Commons supports the goal of improving and diversifying Calgary’s economy. It supports the Downtown Strategy and is considered a catalyst project for the Culture + Entertainment District.

Executed in two Phases, Arts Commons Transformation will both expand capacity in an adjoining new building and renew the existing facility.

Phase one of the transformation will expand capacity at a new location called Arts Commons North, or The Roadhouse. The Roadhouse will include three versatile, purpose-built venues, a connection to the existing building and supporting amenities. This 173,000 square-foot space will include a new 1,200 seat theatre, two smaller theatres, rehearsal space and an elevated corridor to the existing building and related amenities.

The Government of Canada recently announced its intention to double the federal Gas Tax Fund for one year, as the newly renamed Canada Community-Building Fund. This $77 million of new federal funding will be directed for the Arts Commons Transformation (ACT) Project Phase 1.

The ACT project has been identified as a catalytic project for downtown vibrancy for over 15 years. Arts Commons, inclusive of the 6 resident companies, currently contributes $53 million to Calgary’s economy annually and supports 683 jobs.

Upon ACT completion, Arts Commons will annually support 55 jobs in Calgary, provide $239M in labour income, and contribute $0.1M in government revenues and $386M to GDP.

With two-thirds of the funding for Phase 1 already in place, through the province and the City, this $80M will provide the remaining funding required, fulfill the Federal government’s funding pledge, and result in all three levels of government support. With $77M coming from the Canada Community-Building Fund, the City is only required to top up $3M to achieve full funding for Phase 1 of ACT.

Learn more about the Arts Commons Transformation.