Edmonton passes law to tax owners of abandoned commercial properties at higher rate

Edmonton city council passed a new bylaw Tuesday to impose higher property taxes on owners of abandoned or deteriorating commercial buildings, aiming to push property owners toward making properties safer and improving their condition for the community.

The city still is determining what qualifies as a derelict commercial property, but proposed definitions include buildings that are deserted or abandoned, partially or fully boarded up or secured, or abandoned during construction or demolition.

Mayor Andrew Knack said the tax will give the city enforcement power. "If that pit has been there for one or two years, we'll be able to impose a penalty to either force you to sell the land to somebody who's gonna do something with it, or get to work on the site because those aren't contributing to the community," Knack said.

The city estimates implementation will cost approximately $1 million to update tax software, with projected annual revenue of about $400,000 from the new tax sub-class. Since 2023, the city has addressed derelict residential properties but has not had the same success with commercial ones.

Counsellor Ashley Salvador, Ward Métis, called the tool important for neighborhood safety. "You feel less safe if these properties are vacant, underutilized, and creating risk in your neighbourhood. So, adding this additional tool of a tax sub-class I think is a really important step," Salvador said.

Edmonton Pit Tour, a website and Instagram account highlighting vacant properties across the city, lists 61 vacant spots, some nearly 20 years old and some mid-construction or mid-demolition. One abandoned building beside The Aviary music venue on 111 Avenue caught fire in January. The former Bank of Montreal site at 102 Avenue, south of City Centre Mall, has sat vacant for years under ownership by Regency Developments and was recently put up for sale.