The City of Edmonton is creating a new tax subclass to go after derelict non-residential properties.

The city’s executive committee will have administration create the tax subclass after a unanimous vote Thursday at city hall.

Administration said it is aware of about 20 properties that may be considered candidates for a derelict non-residential tax subclass, with a combined assessment value of $29 million.

Ward Métis Coun. Ashley Salvador spearheaded the motion after creating a residential derelict tax subclass, which came into effect in 2024.

The success of that program led Salvador to go after non-residential properties such as neglected or dilapidated commercial properties.

“These properties are dragging down our communities,” Salvador told CBC news in an interview.

“They create real fire risks, safety risks, hazards in our neighbourhoods, and they also draw a significant amount of city resources as well, in the form of emergency response as well as bylaw — So we need to take a stronger approach.”

The city will hone in on the specifics of understanding how the tax will apply to non-residential properties, stating in a report that a non-residential version may be more complicated to “accommodate properties with multiple buildings or multiple discrete spaces (such as bays in a shopping plaza), and to ensure the subclass is not applied to properties that are under renovation.”

A potential definition in the report for the non-residential subclass is “properties that contain a fully or partially constructed non-residential improvement, where the improvement shows serious signs of neglect, is dilapidated, falling into significant disrepair, or is unusable for its intended purpose, but does not include properties that are actively undergoing renovation, construction or demolition.”

As part of the criteria, the city also looks at whether properties are “unoccupied” and have not been actively used for their intended use for 12 consecutive months.

Other factors include utility consumption levels, active business licenses or permits, physical signs of disrepair or neglect, lack of visible occupation and failure of owners to provide evidence of active use or occupation within a defined time frame after providing notice.

Community impact 

Concern around the issue of derelict properties was renewed after an abandoned property next to the music venue The Aviary was damaged in a fire on Jan. 4.

“I was mere millimetres away from losing my business there,” Muz said

Community organizer Christy Morin, who’s lived in the Alberta Avenue area for more than 30 years, said she and others in the neighborhood have been pushing for change on the issue since 2005.

“It actually detracts from the economy, as we are working on revitalizing these neighborhoods. It actually repels them, and people are not attracted to coming up and setting up shop next door to a property that’s been burnt three times.”

Before the new tax can be fully implemented, Salvador said there are a variety of logistical steps that need to be explored like nailing down a definition and dedicating a year for tax assessors to examine candidate properties and determine whether they are derelict. 

The city will need to make upgrades to its taxation tools to be able to implement additional subclasses. This will require a capital investment that will be discussed at upcoming budget talks. 

Depending on how soon these steps are completed, a derelict non-residential subclass could be taxed at a higher rate by 2030.