Edmonton considers both punishments and incentives for derelict properties

Hitting property owners with higher taxes or offering grants for repairs are options city councillors will explore this week to tackle derelict or vacant buildings causing nuisance and safety concerns in Edmonton.

Between January 2021 and the end of last February, the city listed another 251 vacant and derelict locations as problem properties. These include noisy locations or unlicensed businesses that have a “significant detrimental impact to the surrounding area,” including harm to the health and safety of neighbours, occupants and employees, according to a staff report.

On Monday, a council committee will look at various options to deal with them. A new residential tax subclass charging higher taxes on derelict residential properties is one option.

“This would create a deterrent for property owners owning such properties to allow them to fall into disrepair,” reads the report.

The same could be applied to non-residential properties but it would be more difficult to enforce since they would need to be unoccupied for more than one year, city officials say.

Should the city proceed with the tax, staff suggest also offering an incentive.

“This type of tax tool may best be implemented when paired with a grant that will encourage the remediation of these problem properties by the end of the taxation year,” the report states. “The amount of the grant could be based on the difference between the higher tax rate applied to derelict properties, and the lower tax rate applied to most residential properties.

“This would create both an incentive and a disincentive to deal with derelict residential properties.”

Problem properties are a symptom of larger social issues, staff say, and efforts to address them must also look to affordable housing, anti-racism initiatives, reconciliation, crime prevention, making spaces safe and inclusive, and improving equity and diversity.

Edmonton will also begin a three-month pilot project called the Community Property Safety Team by the end of this month to escalate enforcement.

“This team will be responsible for securing and holding landowners accountable for vacant and unsecured buildings that pose a fire risk to the surrounding community. If the property owners are not compliant, administration will pursue remedial action to make these properties safe at the property
owners’ cost,” according to the report.

Since 2018, the city has identified 486 problem properties and conducted 1,337 inspections and 2,560 enforcement actions to address them.