Demolition of derelict buildings in Calgary’s downtown to make room for hundreds of purpose-built rentals

Three vacant buildings in Calgary’s downtown will be demolished to make way for a 33-storey mixed-use tower which will house hundreds of purpose-built rental units, the city said Tuesday.

The project is the first to be approved under the Downtown Calgary Demolition Incentive Program, which gives funding to support the removal of underused office buildings that aren’t suitable for conversion projects.

Edmonton’s Cantiro Group put forward the application to knock down three buildings on the south side of 4 Avenue SW between 5 and 6 Street. The buildings have been boarded up for several years.

A fourth building on the site, also set to be demolished, is not part of the incentive program application.

The project will include a 33-storey mixed-use tower will have 340 purpose-built rental housing units, including at least 50 affordable units and a two-story retail podium.

“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,” Calgary Mayor Jyoti Gondek said.

The city says the Demolition Incentive Program is designed to help with abatement and demolition costs, allowing the land to be better used for purposes that improve the vibrancy of downtown.

Successful applicants get a grant for 50 per cent of demolition costs not more than $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, the city adds.

Abatement work has already been completed on the site, and the demolition is set to begin sometime this month.

Tower construction is expected to begin in the spring.