A new posse has ridden, figuratively, into downtown Calgary, hell bent on revitalizing the area, which at one time supplied millions upon millions of tax dollars to the city..The posse is the Calgary Office Revitalization and Expansion (CORE) Working Group and every property taxpayer in Calgary, whether residential or commercial, needs to pay heed to a new report from the group, whose mandate was “to assess existing research and recommendations and provide a clear road map for the Government of Alberta and the private sector to return Calgary’s downtown core to a healthy and energetic place.” .The No. 1 job is to reduce the tax burden on suburban non-residential properties and those in the Beltline. Hundreds of small businesses closed up shop due to increased taxes brought on by the demise of downtown.The group, co-chaired by Minister of Jobs, Economy and Innovation, Doug Schweitzer, and Calgary-Currie MLA, Nicholas Milliken, includes 10 representatives from various organizations and foundations in the city, as well as home builders and other private enterprise executives..“A thriving downtown core sends a strong signal to Calgarians, industry and outside investors that Alberta is where you want to do business,” says Schweitzer..“I look forward to seeing this working group’s recommendations on how we can take advantage of the many opportunities that exist for Calgary’s downtown core.”.Most government reports can cure insomnia, but the CORE Group’s report goes deep into the tough realities facing revitalization of downtown. .Last year, the downtown vacancy rate rocketed to 32.3%, an all-time high and miles above the optimal rate of 8%..“The inventory of office space, at 45 million square feet, is simply too high and not sustainable for the long term,” says the report..“Without a program in place to repurpose/eliminate at least six million square feet of B and C class office buildings over the next 10 years, the overall vacancy rate would only improve to 27.8% by 2031.”.Office buildings have four basic classifications. AA and A classes are newer buildings, with higher-quality finishes, amenities and accessibility. Class B tends to offer more utilitarian space with fewer amenities. Class C is older, usually 30+ years, in fair to poor condition and typically not as well-located as Class A or Class B buildings..The vacancy rate downtown varies by class: AA space is 16.1%; A space is 38.1%; B is 39.1% and; C is 46.1%, with businesses moving to AA and A buildings as leases expire..“Over 50% of the overall vacancy in Calgary is located west of 5th Street, which is home to over 90% of the city’s Class B and C buildings,” says the report..“This means Calgary’s office vacancy issue is very much a west-end reality story and a lower quality property reality, (with) the status quo leading to a hollowed-out west end of downtown, a lack of vibrancy overall, no increase in property tax revenues and little to no capital investment.”.Class B and C buildings would be the first on a list of buildings to be demolished..“The west end is also home to the West Village, west of 14 Street S.W. and a massively underdeveloped area. With a new understanding of the potential that exists from a redevelopment perspective, the time is right for planning and investment in the area,” says the report..The CORE Group’s report identifies four priorities for the core: .Priority 1: Incentivize real estate development. Social and fiscal incentives can work hand-in-hand to bring institutional and residential expansion to the downtown by identifying opportunities..Priority 2: Support vibrant initiatives. Further developing downtown as a post-secondary education hub and enabling community activations and attracting events that bring increased foot traffic. .Priority 3: Develop downtown diversity. Attracting new industries to establish themselves in Calgary’s downtown core and incentivizing the development of housing solutions for students, seniors, low-income families, young adults, and others will provide density and diversity for the downtown.. Priority 4: Improve downtown safety, security, and quality of life. Increasing the safety of Calgary’s downtown by working collaboratively with community organizations to address homelessness, addiction and social disorder..The group debated whether safety is a driver for downtown revitalization or an outcome of a more vibrant downtown, and if actions should first be taken to attract more people to downtown, or if actions should first be taken to make it safer to entice people to come. .I’m speaking now as a Beltliner who occasionally ventures into the core; for those who are there every day, and; for those who avoid it like the plague: Safety and security must be Priority No. 1. Downtown needs to have at least 150,000 or more people there every day, but that day will not come until everyone feels comfortable, safe and secure being downtown..Clean it up, and they will come.
