Lethbridge City Council approves six new TRIP applications

LETHBRIDGE, AB – Lethbridge City Council has given the thumbs up to six Targeted Redevelopment Incentive Program (TRIP) applications.

Following the City Council meeting on Tuesday, October 11, 2022, the City of Lethbridge noted that collectively these applications, along with three previous approvals, will have an estimated return on investment (ROI) of:

• $14 million in construction value
• Increase from a base assessment of $6.2 million to $14.6 million at completion (+136 per cent)
• $3.2 million in net increase in municipal taxes from the redeveloped properties over 20 years

TRIP helps to promote new construction or large renovations of medium-to-large scale commercial, retail and mixed-use building projects that generate significant and ongoing expansion to the assessment base in the urban core. The program features a tax cancellation of the municipal portion of the taxes based on the increased assessed value due to construction for a pre-determined amount of years, which is based on the construction value of the project.

The six projects that were approved on October 11 are:

• 622 3 Avenue South: Foster and Sons Jewelry repositioned its main entrance to face the reconstructed 3 Avenue South. Its interior has been overhauled with new finishes and barrier-free accessibility improvements have been incorporated.
• 507 6 Avenue South: A complete exterior façade upgrade, along with structural improvements to support a second-floor residential addition with a rooftop balcony, for an existing downtown commercial building with several retail spaces.
• 321 8 Street South: The redevelopment of a downtown retail property, which has been vacant for the last five years, into a commercial office space for a local real estate brokerage. The renovation will include new offices, new finishes, barrier-free washrooms and a façade renovation to rejuvenate the aging exterior.
• 702 3 Avenue South: The modernization and redevelopment of the former Scotiabank building, which has sat vacant for nearly a decade. The redevelopment will result in a building with adequate ventilation, restored exterior façade, modernization of mechanical and electrical systems, an increase of usable floor space by extension of a second-floor system and an increase in accessibility.
• 319 6 Street South: This project will include a complete redevelopment of an existing commercial retail and office building into a full new service restaurant and bar, including structural stabilization to support a rooftop patio.
• 1004 1 Avenue South: A complete development of an existing commercial/warehouse building in the Warehouse District neighborhood into a fitness facility with a mixed martial arts, yoga and workout room. It will also include improvements were needed to meet current code, including a new roof, structural improvements, mechanical and electrical system upgrades and accessibility improvements.

Lethbridge Mayor Blaine Hyggen said, “These redevelopment projects and TRIP are great ways to stimulate economic prosperity and diversification, while also having an impactful long-term positive return on investment.”

So far, City Council has approved four TRIP projects (three tax-based and one grant-based) for an estimated total tax cancellation of $830,000 during the next seven years. In approving all six of the above-listed applications, the total tax cancellation raises to an estimated $1.3 million during the next seven years, while providing an estimated $3.2 million in net increase in municipal taxes from the redeveloped properties across 20 years.

Andrew Malcolm, Urban Revitalization Manager said, “When strategically developed, development-based grants and incentives have proven to be an effective tool in economic development in key strategic areas to yield in community return on investment.”

“I commend Council for these approvals and look forward to seeing the vibrancy these projects will help create.”

TRIP is one of three incentives that make up the Urban Core Incentive Program, which is focused on redeveloping and revitalizing the urban core. The urban core includes downtown Lethbridge, the Warehouse District, and 13 Street North.