The request for tax relief tied to the long-vacant Nisbet Apartments has returned to administration after councillors said they needed clearer financial details before considering any penalty write-off.
The issue traces back to August 2025, when property owner Marie Chiem appeared before council to explain why the 30-unit building at 80 13th Street West had remained empty and why unpaid taxes had mounted. At that time, she asked the council to consider waiving penalties and interest so renovations could proceed, arguing the relief was necessary to make the project viable. Council did not make a decision then and instead referred the matter to administration for review.
That review came back to the Executive Committee on Monday under agenda item 7.3.
Nasir Khan, acting director of financial services, told councillors administration was recommending a conditional approach that would allow up to 75 percent of accrued penalties to be written off, but only if strict requirements were met.
“Administration is recommending a plan to write off up to 75 percent of accrued penalities, while ensuring renovations proceed before any penalties are written off,” Khan said.
Under the proposal, the property owner would first be required to obtain a building permit and pay 50 percent of the outstanding tax levies, about $79,832.78, before any permit is issued. The remaining tax balance would be paid through a payment plan with the City. Penalties would only be reduced after renovations are completed, final inspections are passed, and payments are made without default. An additional portion of penalties would only be written off after six months of consistent payments.
Khan said the approach was intended to support affordable housing while protecting the City’s financial position. Administration also noted the project’s focus has shifted toward affordable student housing, citing downtown proximity to post-secondary institutions and housing gaps identified in the City’s housing needs assessment.
Several councillors, however, said they were not prepared to support the proposal without more concrete information.
“I personally am not okay with approving something like this, if I don’t know the details of that plan,” Bryce Laewetz said, adding that the length of the repayment period and the interest applied to outstanding balances were critical details.
Blake Edwards echoed those concerns and questioned the clarity of the financial figures presented.
“For those reading our reports and questioning some of these things, they have to take out a calculator and figure out that about $54,000 is what would be written off initially,” Edwards said. “I guess my question is why that amount is not clearly in the report, because when I look at it, I am not seeing that specific request spelled out anywhere.”
Administration confirmed accrued penalities total about $108,365 and date back to mid-2020, with only a few small payments made since then. Interest and penalties would continue to apply on any unpaid balances going forward, even under a payment plan.
Mayor Bill Powalinsky said council was not rejecting the request but wanted greater transparency before moving ahead.
“I agree that this needs to come back for further review and discussion,” Powalinsky said. “We want to know what is being paid, over what period of time, and under what conditions.”
Powalinsky also asked whether the City had any precedent for a similar arrangement. Adminstration said there was no existing template, marking the proposal a unique case.
Following the discussion, councillors voted to refer the report back to administration and requested that the matter be discussed at an upcoming in-camera Executive committee meeting.
Council asked for clearer repayment timelines, stronger detail on the owner’s financial commitment, and more certainty around the terms before the issue returns for a public decision.
For now, the tax relief request remains unresolved, with council signalling openness to the concept but insisting on clearer terms before considering any write-off tied to the Nisbet Apartments redevelopment.
arjun.pillai@paherald.sk.ca
