Prince Albert City Council has agreed to give Gateway Mall more time to pay its 2025 property taxes without facing late-payment penalties, following a sharp increase in its tax bill and an ongoing appeal of the property’s assessment.
At Monday’s executive committee meeting, councillors voted unanimously to approve a penalty-exempt period from Sept. 1, 2025, to Dec. 31, 2026. The move gives the mall’s owners 16 months to pay their 2025 and 2026 taxes in full before penalties resume.
Financial Services Director Ramona Fauchoux told the council that Gateway Mall’s property taxes jumped from $521,118 in 2024 to $931,789 in 2025, an increase of $410,671, after the property’s assessed value rose by more than $16 million. The mall’s owners have filed an appeal, with a Board of Revision hearing scheduled for Oct. 1.
“The property manager has stated they cannot withstand a tax payment that has more than doubled from the previous year,” Fauchoux said. “Waiving the penalties during the appeal process allows them to stabilize their financial situation.”
Fauchoux said the mall had been on the city’s monthly TIPPS program but withdrew at the end of August because payments jumped from $41,000 to $112,000 per month. More than half of the 2025 levy has already been paid.
Coun. Daniel Brown called the tax increase “pretty crazy” and said supporting the abatement was necessary to protect local jobs.
“I’d rather see an abatement given than the mall close its doors,” Brown said. “There are still a lot of good people making wages in that building, and I don’t think it hurts us to keep it afloat for a year and a half.”
Mayor Bill Powalinsky asked what would happen if the appeal process stretches past December 2026. Fauchoux said the issue would come back to council for another decision if needed.
Coun. Tony Head asked if waiving penalties would affect the city’s budget. Fauchoux said there is currently a surplus in the penalties account, so the decision would not have an impact on operations.
The penalty waiver is expected to save the mall owners roughly $107,000 in additional costs if the balance remains unpaid through the exemption period.
If the appeal is successful, the city will adjust the tax amount accordingly. If it is unsuccessful, penalties would be applied to any unpaid balance starting Jan. 1, 2027.
