Development Incentives

Development incentives are tools that the City uses to direct funds towards development opportunities that promote revitalization and housing initiatives like missing middle housing, affordable housing, universal design and accessibility, and downtown revitalization.

The City of Yellowknife’s Development Incentives have been developed to encourage investment that might not otherwise happen and to promote specific types of developments and improvements within the city. These new development incentives align with City Council’s Strategic Direction for Housing for All, Growth Readiness, Livable Community, Resilient Future and Robust Economy.

The Development Incentives are designed to provide abatements and/or grants to successful applicants to support housing, land and revitalization initiatives throughout the city. Multiple incentives can be combined together in order to maximize a development’s potential. Click on the below categories to explore the different development incentives available. An overview can be found under the Development Incentives Guide.

Housing Incentives

Revitalization Incentives

Land Incentives

Application Process

Applicants are encourage to schedule a Pre-Development Consultation with the Planning & Development Department in order to determine which development incentives are most suitable for the type of development being proposed.

Since funding is limited, applicants should apply as soon as possible. However, applications will not be accepted once a Building Permit is issued for the development to which the incentives apply.

Most grants will be offered once a Building Permit is issued; however, abatements and some grants will only be offered after construction is complete, occupancy granted, and notice of assessments complete.

To apply for any of the development incentives, fill out and submit Form A and Form A2. Please ensure that as part of the application, you include at minimum a detailed site plan, an approved easement encroachment agreement and authorization from property owner (if applicable), as well as banking information and any other relevant drawing or document.

If you are ready to apply, please click here to access the paper Application Form and the online Application Portal.

Development Incentive Application Process

Resources

Development Incentives Guide

Development Incentives By-law No. 5097

Zoning By-law No. 5045

Building By-law No. 5058

For more information contact the Planning & Development Department at 867-920-5600 or at PlanningandEnvironment@yellowknife.ca

Frequently Asked Questions

We have tried to respond to frequently asked questions about our development incentives. We will add more information as new questions come up. If you have a question that you would like to see answered on this page, contact our Planning & Environment Division by e-mail at PlanningandEnvironment@yellowknife.ca

Tax Abatements FAQ

What are Development Incentives?

Development Incentives are tools used to direct funds and implement policy towards existing and new development opportunities. Development Incentives can also be in-kind in the form of providing services, amenities or other supportive measures.

Who is eligible for the Development Incentive?

Applicants must be registered owners of the property and shall not be in tax arrears for any property within the City.

Federal or Territorial owned lands, buildings or projects are ineligible for all programs.

What are abatements and how are they calculated?

Abatements are a financial incentive to encourage development and redevelopment initiatives. Once a development is completed it is applied as a tax credit on the property’s tax account.

Abatements only apply to the increase in improvement value and are calculated using finalized assessment values.* Land value is not included in the calculation for an abatement.

*Please note that all abatements must be shown to increase the appraised value of the property by at least $500,000 upon construction completion

What is the difference between the Five Year Declining Abatement and Full Five Year Abatement?

The Five Year Declining Abatement provides the applicant the equivalent value of the tax that would be payable for the increase of the improvement value at 100% in year one. The amount of abatement is decreased in equal reduction of 20% over the remaining four years:

(Year 1 – 100%; Year 2 – 80%; Year 3 – 60%; Year 4 – 40%; Year 5 – 20%).

The Full Five Year Abatement provides the applicant the equivalent value of the tax that would be payable for the increase of the improvement value at 100% over five years:

(Year 1 – 100%; Year 2 – 100%; Year 3 – 100%; Year 4 – 100%; Year 5 – 100%).

Can abatements be applied to all types of developments?

Abatements are only applied to the following types of developments:

New residential, commercial or mixed-use developments within the Downtown Zone;
Adaptive re-use of existing buildings within the Downtown Zone;
New multi-unit residential and commercial developments; or adaptive re-use of existing buildings with the Residential Central Zone;
New multi-unit developments within the Residential Central or Residential Intensification Zones; and
Industrial relocation from sender lands to receiver land*

*Please note that the industrial relocation abatement may be applied to either the sender land or the receiver land, but not both

After I submit my application, how long will it take until I get the abatement on my tax account?

Any abated payments will occur upon completion of all of the following:

a certified property assessment;
signed contribution agreement; and
authorization by the Planning Administrator and Director of Corporate Services.

What happens if I am approved for a development incentive but don't complete the project according to the terms and conditions of an Agreement?

Any incentive may be revoked or suspended for outstanding orders or requirements which have not been completed in terms of schedule or for non-compliance. Failure to comply with the terms of the agreement will result in forfeit of all incentives and may require repayment to the City of Yellowknife.

Grants FAQ

Who is eligible for the Development Incentive Grants?

Applicants must be registered owners of the property and shall not be in tax arrears for any property within the City.

Federal or Territorial owned lands, buildings or projects are ineligible for all programs.

Is the City offering any grants and loans as part of the program?

The City has grants for housing, land purchase, revitalization of existing development and permit fees.

Development Incentives do not include any loans.

Can I apply for multiple grants at the same time?

Yes. You may be eligible to apply for multiple grants when a proposed development conforms to each of the regulations under each incentive. Please note that funding is limited.

Can I apply for both abatements and grants?

Yes. Abatements and grants may be applied for together and combined to support a development, subject to available funding.

After I submit my application, how long will it take until I get the grants?

Payment of the following grants will be made following a successful application, completion of a contribution agreement and based on available funding. Payment may be made prior to construction of the project:

Universal Commercial Development Grant;
Secondary Dwelling Grant;
Affordable Secondary Dwelling Grant;
Affordable Non-profit Grant;
Universal Dwelling Units Grant; and/or
Missing Middle Grant.

Payment of the following grants will be made following a determination by the Planning Administrator that the project has been final completed according to the terms and conditions of the contribution agreement:

Environmental Impact Study (EIS) Grant;
Bicycle Racks and Storage Grants;
Vehicle Share Grant;
Intensification Servicing Grant;
Ventilation Systems Grant; and/or
Development Permit and Building Permit Fee Grant