First project under Demolition Incentive Program approved

Key Takeaways:

• The City of Calgary approved the first funding application under the Downtown Calgary Demolition Incentive Program, which aims to remove underused office buildings unsuitable for conversion to improve downtown vibrancy.
• Edmonton-based developer Cantiro Group received approval for the demolition of three vacant buildings on 4 Avenue S.W., and plans to replace them with a 33-storey mixed-use tower featuring approximately 340 rental housing units, including at least 50 affordable units, and a two-storey retail podium.
• The project, supported by the Demolition Incentive Program, is expected to bring $100 million in private investment to downtown Calgary, contributing to the city’s Downtown Revitalization Strategy by reducing vacant office space, increasing economic activity, and supporting new housing projects.

The Whole Story:

The City of Calgary has announced the approval of the first funding application under the Downtown Calgary Demolition Incentive Program. Joining other key incentive programs focused on the revitalization in the downtown core, the Demolition Incentive Program provides funding to support the removal of underused office buildings that aren’t suitable for conversion projects.

The approved application by Cantiro Group is for the demolition of three buildings along the south side of 4 Avenue S.W. between 5 and 6 Street. The buildings are currently vacant and have been boarded up for several years. A fourth building on the site, while also scheduled for demolition, is not part of the application under the incentive program.

The proposed redevelopment project will be the Edmonton based developer’s second project in Calgary and includes a 33-storey mixed-use tower consisting of approximately 340 purpose-built rental housing units including at least 50 affordable units as well as a two-storey retail podium designed to support a variety of commercial uses.

“The Demolition Incentive Program is one of four initiatives breathing new life into our downtown by reducing vacant office space, increasing economic activity, enhancing safety, and supporting the delivery of new housing projects as well as amenities for Calgarians. This incentive will enable $100 million in private investment to flow into our downtown through this project, clearly demonstrating that the Downtown Revitalization Strategy is working,” said Calgary Mayor Jyoti Gondek.

The Demolition Incentive Program is intended to help with abatement and demolition costs, allowing the land to be better used for purposes that improve downtown vibrancy. The program provides a grant at 50% of demolition costs not to exceed a rate of $15 per square foot based on the original gross floor area of existing office space that will be demolished. An additional $5 per square foot is available for projects requiring asbestos or hazardous material abatement.

Cantiro stated that it is thrilled to expand into the Calgary market and collaborate with the city.

“By breathing new life into this area, we will be enhancing community vibrancy, diversifying the tax base, and contributing to the continuing revitalization of downtown,” says  Cantiro chief operating officer Jodie Wacko.

Abatement work has been completed at the site and the demolition is set to begin in early September 2024. Cantiro plans to commence construction of the tower in Spring 2025.

Cantiro has more than 25 years of integrated real estate experience and operates through four divisions – homes, communities, commercial, and residential rentals. In addition to this project, Cantiro is actively developing a multifamily community in Arbour Lake and has joined the West Hawk builder group in Cochrane. Headquartered in Edmonton, Cantiro also extends its presence with projects in B.C. and Ontario.