Edmonton developers seek cash from city to rehab historic buildings

Two Edmonton developersare asking the cityfor financial support in renovating two historic buildings.

Beljan Development is refittingthe Strathcona Hotel on Whyte Avenue intocommercial retail space whilePrimavera Development Group is rehabilitatingthe Brighton Block on Jasper Avenue.

Beljan spokesperson Chris Dulaba argues that investing in the 127-year-old Strathcona Hotel is in the public's interest.

"There's not many of these gems around," Dulaba said. "Built in 1891, [it] was one of the first buildings you saw when you got off at the Strathcona station off the Calgary-Edmonton railroad."

It's also considered one of Alberta's last wood-framed hotels from the 19th century.

Of the $5 million estimated for the project, the company suggests it merits just over $1.4 million from the heritage resources reserve which helps developers withrenovation and maintenancecosts.

Because the hotel was designated a municipal historic resource in 2007 long before Beljan bought it the company qualifies only for grants to maintain the building,not for renovations.

In a report,city administration isrecommendingcouncil consider thefunding requestas a one-time exception.

The city's urban planning committee willdiscuss the funding requests from both parties at a meeting Tuesday.

If council agrees, Beljan could receive close to $464,000 for the Strathcona Hotel project.

• New developer committed to Strathcona Hotel renewal
• Strathcona Hotel fire smouldered for 11 hours before firefighters called

Any city funding would be used to update the structure to meet modern building code,not to repair damage from a fire in March,Dulaba told CBC News.

Primavera, likewise, suggests its $15-million Brighton Block project merits $3.4 million from the reserve, butis asking the city for half that amount.

City administration recommends council grant the projecta one-time exception of$567,000.

Dulaba described the grant program as a tremendous opportunity for developers willing to take a chance on an historic building.

"It allows people like us to take the risk and to do some interesting things and take on a lot of these types of difficult development," he said.

"It's always easier just to demolish it and start from new versus take on something that's existing and add onto it."

• Historic Jasper Avenue buildings ready for new life
• City needs better rules for funding agreements, auditor finds

The historic resource management program dates back to 1980.

In 1985, the city designated the Hotel Macdonald ahistoric resource, the first of 150 buildings.

Since thenthe program has distributed $16 million in funding.

There hasbeen more pressure on the reserve in the past couple of years.In 2017 there were 14 designations compared to six buildings a year on average up to then.

Buildings on the roster for 2019-22 includethe Richards Block, also on Whyte Avenue, Strathcona Garage and Douglas Manor. In August, the Richards Block was designated a provincial historic resource.

In 2015, city council agreed to increase the annual tax levy to the reserve to $2.3 million beginning in 2018.

@natashariebe