Derelict properties in Regina to be targeted by higher property taxes

The City of Regina will try a new approach to encourage the cleanup of derelict properties in the inner city – and it’s an approach that’s more stick than carrot.

Following a motion by Ward 6 Councillor Victoria Flores, the city will create a special property tax class for nuisance and derelict residential properties, which will see the owners charged five times the city’s regular property tax rate.

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The motion followed remarks by Wendy Miller of the Heritage Community Association about a perceived lack of progress in addressing derelict properties.

“Over many months – actually many years – the proliferation of the many properties in our community has severely impacted the quality of life, safety and economic stability in the Heritage community,” Miller said.

She pointed out that the two areas of the city with the most issues happen to flank downtown, which affects the city’s ability to revitalize the area.

“It continues to be a problem because, quite simply, it can be a problem with no consequences attached,” she said. “For many, it has become a game, with the community losing.”

In a progress report to council, city administration recommended continuing with the status quo, which it said has resulted in more demolitions and remediation efforts. But Miller said the problem is worse than ever, partly because many people don’t feel as if making a service request with the city will yield any results. She noted that the process is not a simple one for many residents.

“Many of our folks in our community are merely trying to put food on their table or keep their roof over their head,” she said.

“Service requests actually are a barrier. I have lots of people actually asking how to even do one.”

The motion for a property tax subclass passed despite concerns outlined by administration, which said in its report that the change will require additional resources, which will have to be requested in the city’s next round of budget deliberations.

Daren Anderson, Regina’s chief financial officer, said that while the purpose of the subclass is to create an incentive for private investment, it may not work as well in Regina as in Edmonton, which has seen some success with a similar measure.

“It’s an economic incentive for someone to say ‘I’m going to avoid this high tax and invest in my property,’” Anderson explained.

“If, in Edmonton, you have a property with a derelict house on it that needs to be torn down, and it costs $30,000 to tear down that house – which is roughly the cost to tear down the house both here and in Edmonton – and you can sell that lot afterwards for $50,000, that’s where the economic incentive comes in.”

He said when a house is demolished in the Queen City, the lot value tends to decline sharply.

“The issue we have in Regina is that those same houses, that same lot, once you pay $30,000 to demolish the house, the lot’s only worth $17,000,” Anderson said.

But Mayor Chad Bachynski, who voted for the motion, said he felt that the upsides outweighed the downsides.

“I think we owe it to, especially, the North Central and Heritage communities, to show that we, as a city, do care. We care about those areas of the city. And that takes effort, that takes investment, and that takes making sure that we have maybe not just one tool, but multiple tools to try and address some of those areas,” he said.

The mayor said he expects further decisions will be made at budget time, once the city has a clearer picture of the cost. While this past year’s budget process led to a reduction for proactive enforcement, Bachynski said the city having multiple tools to address nuisance properties can help make up for that reduction.

“If we can prevent getting to the place of having to demolish, we can actually encourage people to keep up their properties,” Bachynski said. “I think that is a speedier approach than going all the way to demolition.”

The subclass for nuisance and derelict properties will take effect in 2028.