Prince Albert city council approved tax incentive applications Monday for two new commercial projects on Seventh Avenue East.
The applications cover a proposed restaurant at 4333 Seventh Avenue East and a proposed hotel at 4477 Seventh Avenue East. Both were approved under the city’s New Construction of Commercial and Multi-Unit Residential Development Incentive Program.
The restaurant project has an estimated construction value of $2.2 million. The hotel project has an estimated construction value of $12 million.
The program provides a declining tax abatement over four years for eligible new commercial construction and multi-unit residential developments. The incentive applies only to the General Municipal Levy. The city will still collect the Civic Facilities Levy, Library Levy, Base Tax, Snow Management Levy and Roadways Levy.
The restaurant report estimates the city would forego about $29,567.67 in general municipal revenue over four years, while still collecting about $60,031.33 during that period. The city also expects about $16,500 in building permit fees from the project.
The hotel report estimates the city would forego about $496,773.98 in general municipal revenue over four years, while still collecting about $1,008,601.72 during that period. The city also expects about $90,000 in building permit fees from the hotel project.
Both properties would become fully taxable in the fifth year.
Council dealt with the restaurant application first. Coun. Stephen Ring moved the motion and Coun. Blake Edwards seconded it.
Edwards said he welcomed the continued investment in the area.
“I just want to applaud the businesses that are moving in,” Edwards said. “It shows strength in our community with these large developments occurring.”
Coun. Bryce Laewetz also supported the application, but asked how the incentives would affect the funding model tied to taxes and building permits from development in the area.
“I’m excited to see more development happen in the areas where the area was intended for,” Laewetz said.
Acting City Manager Craig Guidinger said the city has not necessarily done a study, but is closely tracking the funding model. He said administration will update council before 2027 budget deliberations if adjustments are needed.
“As you’re alluding to, the taxation from developments in the area is going towards that funding model, along with the building permits as well,” Guidinger said.
The restaurant motion carried.
Council then dealt with the hotel application. Edwards moved the motion and Ring seconded it. There was no discussion, and the motion carried.
The approvals add to recent development activity along the same stretch of Seventh Avenue East. In April, council approved a discretionary use permit for a 139-room, four-storey hotel at 4415 Seventh Avenue East, located between the two properties considered Monday. That project was described at the time as part of the Yard District growth area near the Lake Country Co-op Leisure Centre.
The incentive program also has a direct connection to earlier Yard District discussions. When council first moved the program forward in 2025, it replaced previously discussed incentive ideas for areas like the Yard District with a city-wide program meant to attract new commercial buildings and multi-unit housing.
The city’s reports say the incentive program was approved by council on July 21, 2025 to promote new commercial construction and multi-unit residential development. Administration said the two new applications meet the program criteria.
arjun.pillai@paherald.sk.ca
