City of Edmonton says new tax is cleaning up derelict properties

Dozens of homes across the city have been cleaned up, according to the City of Edmonton.

Officials said that's thanks to creating a new tax subclass which slaps derelict properties with a property tax rate about three times higher than the average residential property. City council approved the new tax on derelict homes in October — the first of its kind in Canada.

"More than 15 per cent of the roughly 300 properties we originally identified last fall as in a derelict state have been cleaned up," said Cate Watt, branch manager of assessment and taxation with the city.

City officials updated the Problem Property Initiative on Tuesday afternoon near a stretch of derelict proprieties in the McCauley neighbourhood.  

The new tax subclass, which applies to dilapidated or unlivable homes in mature neighbourhoods, incentivizes owners to either fix their properties to meet minimum standards, or redevelop.

"Abandoned, neglected and derelict properties can be a serious public health risk and a burden on city and emergency services," said Chantel Perizzolo, who works with the city's complaints and investigations section on derelict properties. 

"They're often hotspots for criminal activity and fires."

Perizzolo said the initiative includes securing vacant, derelict properties at risk of being caught fire, clearing properties of debris and hazardous waste, and demolishing buildings assessed as unsafe in the surrounding community. 

Ward Métis Coun. Ashley Salvador said she consistently heard from Edmontontians, who wanted the matter addressed. 

"I was hearing from constituents on a weekly, sometimes daily basis, about the consequences derelict problem properties were having on the health, wellbeing and safety of our communities."

In February, the city assessed numerous derelict homes in neighbourhoods such as Highlands, Alberta Avenue, McCauley, Garneau, Glenwood, Queen Alexandra, Strathcona, Allendale and Westmount.

Between 2017 and 2020, 31 derelict homes cost the city $1.3 million in bylaw inspections, enforcement, safety and welfare checks. 

The initiative relies on co-ordination between multiple city departments, Alberta Health Services, the Edmonton Police Service, and the Alberta government. 

Perizzolo said teams have done over 5,000 inspections in 2023, which has resulted in nearly 700 tickets and multiple orders directing property owners to clean or remediate their sites.

"The work that we're doing, and communicating with owners, has led to the demolition of 270 properties by the owner themselves." 

Watt said the easiest way for owners to remedy the situation is demolishing the property. 

"We are excited to see some of these demolition permits being issued on these properties in tandem with development permits," Watt said, noting some momentum being built around demolished properties being replaced by functioning homes. 

"As everybody knows, we have a shortage of real housing in Alberta and Edmonton, and this is going some way to helping that situation as well."

'We have been crying out as a community'

Christy Morin, executive director of Arts on the Ave, said there has been a dramatic impact on community vibrancy in Alberta Avenue.

"We have been crying out as a community for the past 20 years," Morin said, noting that she was thankful the city was taking action.  

"We are one of the first revitalizing areas, and it has been a continued sore spot for us to see these derelict buildings."

Morin said there were extreme cases of neglect and concerns about safety, such as the situation with a former building on 95A Street. 

"It had been sitting half-built, and poorly built ... for more than 11 years. And so those neighbours had to live next to basically a swamp because it was all falling in, and people were coming and squatting. And it was just horrendous," Morin said.

"To be able to see it ... actually all removed and dirt filled in, and now ready for a new house, it's really fantastic."   

Morin hopes the next step is for the city to hold the owners of commercial derelict properties accountable — as many commercial districts are littered with them. 

"I am sure next-door neighbours to them would really like to see them ... either torn down or have to do something with them to ameliorate the property."