Saskatoon's Broadway Corridor Braces for Major Transformation as Council Weighs $16 Million Tax Break for Broadway Crossing

Saskatoon City Council is on the cusp of a momentous decision that could reshape a pivotal piece of the Broadway Avenue landscape. A significant $16 million tax abatement proposal is currently under consideration, earmarked for the ambitious redevelopment of the former Extra Foods site. This prime urban infill location, once a hub for groceries, is set to be reimagined as ‘Broadway Crossing,’ a vibrant mixed-use development spearheaded by Arbutus Properties in collaboration with Saskatoon Co-op.

The proposed tax break is not a small sum.

It represents a 100 percent abatement on the increased property value resulting from the redevelopment, spread over an anticipated 25-year period. This substantial incentive is a critical component of the project's viability, according to the developers and city administration. The argument is that the high costs associated with developing a complex urban infill site of this magnitude, including the demolition of the existing 1970s structure, environmental remediation, and the construction of new infrastructure, necessitate such support to mitigate financial risks.

Broadway Crossing is envisioned as a comprehensive development designed to address several community needs.

Central to its plans is the reintroduction of a much-needed grocery store, filling a gap in what has been described as a 'food desert' within the area. Beyond essential services, the project will also feature additional commercial spaces, aiming to invigorate local commerce, and will include approximately 300 new residential units.

Crucially, 20 percent of these units are designated as affordable housing, addressing a critical need within the city.

The financial mechanics of the abatement mean that for a quarter-century, the city would forgo the additional property tax revenue generated by the enhanced value of the developed site.

However, proponents argue that this short-term deferral leads to long-term gains. Once the abatement period concludes, the city will benefit from a significantly larger tax base, generating substantially more annual revenue than the site currently provides. Furthermore, the project is expected to create numerous jobs during its construction phase and ongoing employment opportunities once operational.

The debate surrounding such a substantial tax incentive is naturally robust.

While many acknowledge the transformative potential of Broadway Crossing, questions have been raised by some councilors regarding the sheer scale of the $16 million figure. The decision could also establish a precedent for future large-scale urban infill projects, making the upcoming vote particularly influential.

The city's administration has formally recommended approval of the tax abatement, underscoring the perceived benefits and strategic importance of the development for Saskatoon's future growth and revitalization efforts.