Established Neighbourhood Incentive
Vacant Lot and Adaptive Reuse Incentive Program is Discontinued
The Established Neighbourhood Incentive replaces the Vacant Lot and Adaptive Reuse (VLAR) incentive program. The VLAR incentive program has been discontinued and is no longer accepting new submissions. All previously approved VLAR incentive agreements will be honoured.
- June 2026 Regular Council Meeting - Council approved the proposed new development incentives program to replace the Vacant Lot and Adaptive Reuse Incentive Program
- July 2026 Regular Council Meeting - Council approved Council Policy C09-043 – Development Incentives Policy, formally bringing the Established Neighbourhood Development Incentive into effect.
The Established Neighbourhood Incentive supports infill development in established neighbourhoods and commercial development in the City Centre.
Eligible property owners may receive a property tax abatement or, in some cases, a one-time grant after their project is complete.
How the incentive works
Eligible projects may receive a multi-year property tax abatement based on the increase in property taxes resulting from the development.
The tax increase is calculated by comparing:
- Annual property taxes before construction; and
- Annual property taxes assessed after the project is complete.
The abatement may include the municipal, library and school portions of property taxes.
Mixed-use projects with residential and commercial space may be eligible for abatements on both portions of the development.
The value of the incentive depends on:
- the project location; and
- the increase in property taxes created by the development.
Projects with no property tax increase
If a completed project does not result in higher property taxes, the applicant may be eligible for a one-time grant instead of a multi-year tax abatement.
The grant is equal to one year of post-construction property taxes, to a maximum of $250,000. It is based on the municipal and library portions of property taxes only. School taxes are not included.
Eligible locations
Projects must be located within the area shown on the map below.
Incentive Streams
The Established Neighbourhood Incentive has two streams:
- City Centre and Corridor Growth Stream
- Established Neighbourhood Stream
Each stream provides a different percentage of the development-related property tax increase over a set number of years.
The examples below show the potential incentive for a project that creates a $50,000 annual increase in property taxes.
City Centre and Corridor Growth Stream
| Year | Annual Tax Increase | Percentage Abated | Abatement Value |
|---|---|---|---|
| 1 | $50,000 | 100% | $50,000 |
| 2 | $50,000 | 80% | $40,000 |
| 3 | $50,000 | 70% | $35,000 |
| 4 | $50,000 | 60% | $30,000 |
| 5 | $50,000 | 50% | $25,000 |
| TOTAL | $180,000 |
Established Neighbourhood Stream: aerial or collector streets
This applies to projects located on an arterial or collector street outside the City Centre and Corridor Growth boundary.
| Year | Annual Tax Increase | Percentage Abated | Abatement Value |
|---|---|---|---|
| 1 | $50,000 | 80% | $40,000 |
| 2 | $50,000 | 70% | $35,000 |
| 3 | $50,000 | 60% | $30,000 |
| 4 | $50,000 | 50% | $25,000 |
| 5 | $50,000 | 40% | $20,000 |
| TOTAL | $150,000 |
Established Neighbourhood Stream: other eligible areas
This applies to projects in the remaining eligible area that are not located on an arterial or collector street.
| Year | Annual Tax Increase | Percentage Abated | Abatement Value |
|---|---|---|---|
| 1 | $50,000 | 80% | $40,000 |
| 2 | $50,000 | 60% | $30,000 |
| 3 | $50,000 | 40% | $20,000 |
| 4 | $50,000 | 20% | $10,000 |
| TOTAL | $100,000 |
How to Apply
Before construction begins, applicants must submit an application that includes details of the proposed development, such as building drawings, to qualify for the incentive program.
Applicants are encouraged to review the Development Incentives Policy before applying.
Apply for the Established Neighbourhood Incentive