City council is ready to put an end to boarded up shops which have served as havens for squatters, drug dealers and arsonists for decades. But a mountain of bureaucracy stands in the way.
Executive committee voted unanimously on Thursday to prepare a new property tax sub-class for derelict non-residential properties in an effort to put an end to empty commercial spaces inhibiting re-development of some of Edmonton’s oldest neighbourhoods.
“We’re coming for you,” said Mayor Andrew Knack. “But you don’t have to worry about that if you just start maintaining your properties.
“I’d much rather them just fix the problem now than us start coming down hard. When these properties are allowed to exist in this state, it’s bringing down communities.”
Administration have identified 20 properties which could qualify as derelict but said there’s probably many more since they were identified through public complaints. In total, those 20 properties have an assessed value of $29 million and $700,000 in property taxes in 2025 — averaging out at $35,000 per property.
Owners of these problem properties have plenty of time to rectify the situation, however. Administration said before council could begin charging a punitive tax on the properties, some of which have sat empty since the 1990s, administration would have to create the sub-class in the city’s ancient taxation software, which is going to cost the city between $700,000 to $1 million to finish upgrading.
Even when that hurdle is cleared, the Municipal Government Act puts limits on how much the city can do. For starters, the city needs to create a legal definition of exactly what is a derelict non-residential property. Once officials know what they’re looking for, a non-residential property identified as derelict has to sit empty for an entire year before the province will allow the city to do something about it.
After that, the act further restricts how much tax the city can charge. The rules say a municipality can charge a non-residential property a maximum of five times the lowest residential property tax rate. In practice this means a maximum punitive tax increase of 57 per cent, or in the average example above would mean just under another $20,000.
In comparison, the city was able to triple property taxes for derelict residential properties.
Five speakers, all from Alberta Avenue, came out in support of the effort, imploring councillors to find any way they could to implement the new tax class sooner.
Speaking on behalf of the Alberta Avenue Community League, former city councillor Allan Bolstad said the dangerous eyesores were discouraging people from moving to or investing in the neighbourhood.
“This is the front door of our community,” he said. “Many people aren’t going to look beyond that.”
Bolstad showed the committee photos of multiple buildings in the area that have had repeated fires, many of which have been sitting empty for five years or more. Ward pihêsiwin Coun. Mike Elliott said from his previous career in policing that many of these buildings were hotspots for drugs, prostitution and human trafficking.
Ward Métis Coun. Ashley Salvador, who wrote the motion, said Edmonton was the first city in Canada to use taxes to push back on problem properties.
“We’ve seen really good success with the residential derelict tax, so this is an extension of that,” she said. “These types of properties become serious fire risks and create hazardous conditions for surrounding communities but also for first responders who are going to these fires.”
Derelict property owners could receive a warning assessment in 2028. Should they remediate or demolish their properties, they will be eligible for a forgiveness of the additional tax. The tax could be in effect by 2030.
Related
Bookmark our website and support our journalism: Don’t miss the news you need to know — add EdmontonJournal.com and EdmontonSun.com to your bookmarks and sign up for our newsletters here.
You can also support our journalism by becoming a digital subscriber. Subscribers gain unlimited access to The Edmonton Journal, Edmonton Sun, National Post and 13 other Canadian news sites. Support us by subscribing today: The Edmonton Journal | The Edmonton Sun.