Edmonton pursues tax incentives to expand density development near transit hubs

Edmonton is preparing to expand development incentives beyond its current priority growth areas to encourage more housing near transit stations as the city approaches 1.25 million residents.

During a Tuesday, August 11, urban planning committee meeting, councillors directed city administration to propose new transit-oriented development guidelines, identify proactive rezoning processes in areas near transit centres, and explore development incentives for areas outside priority growth areas (PGAs).

The city is currently tracking a 32 percent infill rate, with over 76,000 new dwelling units built in the last six years. Councillors were told Edmonton is on course to meet its goal of 50 percent infill by the time the population reaches two million. However, infill growth has been concentrated in PGAs—the nodes and corridors approved for redevelopment—many of which lack the same development incentives as those outside them.

Jacob Dawang of Grow Together Edmonton pointed out that many neighbourhoods with new LRT stations are currently zoned to remain low-density and called for the city to expand its plan to include transit-oriented focus around transit nodes. Committee chairwoman Anne Stevenson explained the reason: the federal Housing Accelerator Fund, which drove much recent infill, was only eligible for PGAs. "Every PGA is a transit-oriented development area, but not every transit-oriented development area is a PGA," Stevenson said.

The city is exploring an "infill infrastructure program" that would expand the previous $45 million Infill Infrastructure Fund and reimburse developers for infrastructure upgrade costs after projects are completed. The program would use property tax collected from new developments to fund upfront costs—a self-funding model that mirrors how the city handles new greenfield development. Additional incentives would apply for climate resiliency or affordable housing projects. The city has not disclosed the budget for the expanded program or the full list of eligible neighbourhoods.