GrantReal Estate Financing

Downtown Office Demolition Incentive Program

The program supports downtown property owners to redevelop or remove underused office space and bring in a greater mix of amenities and services that support a thriving and resilient downtown community.

The Downtown Office Demolition Incentive Program, a key component of the Downtown Calgary Development Incentive Program, supports the demolition of office buildings that are unsuitable for office conversions.

Offered by Development (City of Calgary)

Amount

Up to $3 million

Grant at 50% of demolition costs not to exceed a rate of $15 per square foot of original gross floor area of office space demolished (an additional $5 per square foot may be considered for asbestos abatement and/or hazardous material removal), up to a maximum of $3 million per property unless Council approves a greater amount

Quick eligibility check

Years in business
No minimum stated
Employees
No limit stated
Revenue
No limit stated
Legal structure
No requirement stated
Location

Who can apply

The following criteria must be met to be considered for the Downtown Office Demolition Incentive Program:

To be considered eligible to be approved by the Incentives Approval Committee or Council, as the case may be, an applicant must first satisfy the criteria outlined below. The criteria below must be met to be considered for the Demolition Program.

  1. The proposed demolition results in the elimination/removal of office space.
  2. Preference will be given to end-of-life buildings that are unsuitable for adaptive reuse.
  3. Preference will be given to properties assessed at or close to land value.
  4. The property is located within the Greater Downtown Plan Area with priority given to projects located in the priority area as highlighted on the map in Appendix A, with consideration given to strategic sites in the Downtown West area.
  5. The applicant is the property owner or their designated agent, or the applicant provides the Downtown Strategy Team with the following letters of authorization:
  • Written authorization from the property owner that is satisfactory to the Downtown Strategy Team authorizing The City to obtain any information reasonably requested by The City directly from the property owner; and
  • Written authorization from the applicant that is satisfactory to the Downtown Strategy Team authorizing The City to discuss the details of the application directly with the property owner.
  1. Evidence of satisfactory project financing.
  2. Applicant track record.
  • The applicant shall submit their project experience similar to scope and size contemplated in the application. If the applicant has no demolition experience, the consultants/ advisors that have demolition experience shall be named along with their relevant experience. The construction manager(s) or consultants must have a proven track record in large-scale demolition projects in urban areas. The City’s previous dealings with the applicant, if any, including the applicant’s history of compliance with previous agreements and/or requirements of development, may also be considered.
  • The applicant shall prove to the satisfaction of the Incentives Approval Committee that the applicant has the human resources from a project management, supervision and execution perspective (if not own staff then via consultants) available in Calgary.
  • Details about the applicant shall be provided with the application as follows:
  • Age of entity/corporation;
  • Type of entity/corporation (legal and industry); and,
  • Proof of good standing with respect to annual filings, corporate standing, and financial capacity.
  1. Consideration of existing tenants and uses.
  • The applicant must support the relocation of any existing headlease and sublease tenants to a property within the Greater Downtown Plan Area before demolition.
  • Additional consideration will be given where the following uses and tenancies exist:
  • Non-profit/social services;
  • Educational uses;
  • Cultural spaces, including murals and public art;
  • Daycare & learning centers;
  • Recreational uses;
  • Ground-level retail;
  • Health services; and
  • Other uses as determined by the Downtown Strategy Team.

About the funding

The Demolition Program is offering 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 may be considered for projects requiring asbestos abatement and/or hazardous material removal, not to exceed 50% of total demolition costs.

The grant will be up to a maximum of $3 million per property unless Council approves a greater amount for a particular application.

The grant will be payable upon fulfilment of the terms of the Funding Agreement, completion of demolition, and upon completion of final inspection.