In Toronto Star

Calgary's downtown development incentive program, which offers $75 per square foot to building owners willing to convert underused office space to residential apartments, is unique to North America.

It was launched in 2021, at a time when the city — home to more corporate head offices per capita than anywhere else in Canada — was reeling in the wake of an extended downturn in oil prices and the COVID-19 pandemic.

Commercial property values in the city's core had collapsed due to a wave of energy sector layoffs and consolidation that had left close to a third of Calgary's downtown office space empty.

Desperate to fill nearly 13.5 million square feet of unoccupied space and boost its dwindling tax base, Calgary launched the incentive program with the goal of removing six million square feet of empty offices from the city's downtown by 2031.

Sheryl McMullen, who manages the program for the City of Calgary, said it was unclear at the time what the reception would be.

But the program turned out to be so popular that in October 2023, the city was forced to press pause after reaching its $253-million funding threshold.

The city has unveiled a $36-billion plan to build 65,000 rental homes in Toronto over the next seven years, a target that would require a massive unconfirmed investment from the federal and provincial governments.

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“We are reversing the destructive thinking over the past two decades … that only the private sector can build housing,” Chow said. “The path in front of us is ambitious. It is urgently needed.”