‘This is the type of thing we want to do as part of the larger downtown strategy,’ said Ward 7 Coun. Terry Wong
Members of the city’s executive committee unanimously endorsed a recommendation Tuesday to revise the terms of reference for the Downtown Post-Secondary Institution Incentive Program.
Thom Mahler, the director of Calgary’s downtown strategy, told the committee that while the city has attracted plenty of interest in office-to-residential conversions, the program hasn’t been the most accessible for post-secondary institutions to expand their presence in the downtown.
While some local post-secondary institutions already have a downtown campus, such as Bow Valley College and the University of Calgary, most of the city’s colleges and universities are located outside of the core.
But with downtown office vacancies still hovering around 30 per cent, Mahler argued there’s an opportunity for Calgary’s post-secondary institutions to tap into that space. That would bring down the vacancy rate, support property values and increase the non-residential property tax assessment base.
Mahler’s report outlined that city council has committed $162 million to the four downtown office conversion incentive programs. The programs, launched in 2021, aim to encourage the adaptation of six million square feet of Calgary’s vacant downtown office space into a better balance of residential, office, retail, entertainment and tourism uses.
Post-secondary institutions that want to expand into the downtown can apply for up to $50 per square foot of convertible space, according to the report, up to a maximum of $15 million per project, unless council approves a greater amount.
Mahler acknowledged the cost of converting an office building into post-secondary academic space is currently cost-prohibitive, ranging anywhere from $250 to $500 per square foot. He noted the city’s incentive would cover only 10 to 15 per cent of the total cost.
“How the post-secondary institution manages its own funds internally . . . is probably up to them,” he said. “But the cost of conversions is high and that’s what the incentive is for.”
Steven Sinclair, the acting manager of investment and marketing for the city’s downtown strategy, told the committee the current policy has made it difficult for colleges and universities to subscribe to the program.
He argued the proposed revisions would improve the incentive program’s governance structure, add clarity to the decision-making process and increase funding allocations and eligibility requirements.
Specifically, he said the changes would include an updated review and evaluation process; to provide incentives directly to the post-secondary institution rather than the building owner; a revised minimum occupancy commitment of 15 years rather than 20 years; and a provision that funding will only be allocated to publicly funded colleges and universities.
“We believe these changes will allow post-secondary institutions to convert over 300,000 square feet of vacant office space to academic use for more than 4,000 students, bringing much needed vibrancy to downtown sooner,” Sinclair said.
‘Tremendous value to having a downtown campus’
Before the vote, Ward 7 Coun. Terry Wong, whose ward includes downtown, said the city should embrace the opportunity to include post-secondary institutions in its conversion program.
“This is the type of thing we want to do as part of the larger downtown strategy — stimulate the vibrancy of our downtown core and bring more economic vibrancy, particularly to our different retailers and merchants,” he said.
Mayor Jyoti Gondek agreed there are benefits to increasing post-secondary presence in the core, citing her own experience as a former director for the University of Calgary’s Westman Centre for Real Estate Studies, which is located downtown.
Being downtown offers students the opportunity to network with the people and businesses they may be working for after graduation, Gondek added.
“I think there’s a tremendous value to having a downtown campus, and for students to be able to live downtown is also incredibly important, considering the amenities,” she told reporters after the meeting.
“If you have a downtown campus with downtown housing, it just works really well for the student experience.”
In a statement to Postmedia, Dr. Sandra Davidson, the U of C’s new provost, noted the university already has a strong downtown presence, thanks to its School of Architecture, Planning and Landscape, School of Public Policy and Continuing Education programs all being based in the core.
But with the U of C’s Ahead of Tomorrow strategic plan setting out ambitious growth to meet future demand for post-secondary education, she said the university’s administration will be looking to learn more about “potential opportunities to partner with the city to support this growth” in the coming years.
While the executive committee unanimously endorsed the revisions, the motion still requires approval at a future regular city council meeting.