Local News
Estevan council approves new build tax incentive to boost development
Estevan city council has approved a new tax incentive framework designed to encourage construction on undeveloped land, a move administration says is directly tied to the city’s strategic plan and efforts to address a growing housing gap. The newly adopted New Build Incentive will offer eligible projects a 100‑per‑cent exemption on the municipal portion of property taxes for three years, applied only to the increased assessment created by new construction. Community Development Officer Rebecca Foord said the incentive was developed in collaboration with the Economic Development Board and aligns with the City of Estevan’s 2026–2028 Strategic Plan. “An updated tax incentive framework for the City of Estevan is being brought forward that is aligned with both Economic Development’s strategic priorities and the City of Estevan’s Strategic Plan,” Foord said. Encouraging Construction on Undeveloped Land Foord told the council the incentive is specifically designed to target new construction on bare land, rather than renovations or previously developed properties. “The New Build Incentive is a proposed program to encourage development on bare land within the City of Estevan,” she explained. “Under this program, eligible new construction projects would receive a 100‑per‑cent exemption on the municipal portion of property taxes on the new build for a period of three years.” The exemption applies to commercial, industrial, residential, and multi‑unit residential developments, but does not apply to taxes levied on land itself. Projects must meet all zoning bylaws, development requirements, and national building codes before qualifying. Addressing Housing and Economic Growth According to Foord, the incentive is intended to remove financial barriers during the most difficult years of development while encouraging long‑term investment in the community. “The primary objective of the incentive is to stimulate investment in new construction, support economic growth, and help address Estevan’s current housing gap,” she said. She added that the program is designed to improve viability for developers during the early stages of a project. “By reducing upfront operating costs in the early years of a project, the program is intended to improve project feasibility and attract new development.” While the policy focuses on new builds, Foord noted there is flexibility for projects that significantly expand existing buildings. “The program may also allow for consideration of significant expansions that meaningfully increase property value or contribute to broader economic development goals,” she said, noting those would be reviewed on a case‑by‑case basis. Changes to Existing Incentives Council also approved updates to the city’s Storefront and Façade Improvement Incentive, which Foord described as a well‑used program supporting commercial revitalization. “This incentive has been consistently utilized and represents a practical tool for supporting local business improvement and community beautification,” she said. Under the program, eligible property and business owners may receive a municipal tax exemption equal to 75 per cent of approved improvement costs, to a maximum of $10,000, spread evenly over three years. A new restriction prevents applicants from receiving the incentive more than once within a five‑year period. Both incentive programs require recipients to allow the City of Estevan, Tourism Estevan, and Economic Development departments to promote approved projects for up to one year. “This provides increased visibility while highlighting the city’s support for local growth,” Foord said. Related Stories: Estevan pushes province on vacant affordable housing units Estevan area well-prepared for the future as Statistics Canada looks at population Transition from the Old Program The New Build Incentive replaces the city’s former New Business Incentive, though Foord said a short transition period is being allowed. “It is recommended that the proposed New Build Incentive take effect on April 1, 2026,” she said. “The current New Business Incentive would remain in place for an additional thirty days to allow for the completion of any outstanding or in‑progress applications.” Councillor Shelly Veroba, who sits on the Economic Development Board, said the updated incentives reflect the council’s long‑term vision. “We’ve worked hard to make sure these changes align with the strategic plan and the vision we see for the city,” she said. “I think it’ll be a big change and hopefully generate some new buildings.” Council voted unanimously to approve the incentive framework.