Canmore Council Rejects Bid to Scrap Green Building Incentive

Canmore council narrowly rejected Mayor Sean Krausert's attempt Tuesday to remove a policy that rewards developers for constructing energy-efficient buildings, then approved new downtown development rules that will shape how the town centre grows over the coming decades.

The 4-3 vote means developers in some areas can still build at higher densities if they meet the required energy-efficiency standards. Mayor Krausert, Coun. Jeff Hilstad and Coun. Jen Marran voted to remove the incentive, while Coun. Tanya Foubert, Coun. Wade Graham, Coun. Jeff Mah and Coun. Rob Murray voted to keep it.

The new land use bylaw implements the Town Centre Area Redevelopment Plan, a long-term plan adopted last year to guide growth and redevelopment in downtown Canmore over the next 25 years.

The vote over the density incentive was the clearest split of the day, with councillors divided over whether the policy would help achieve the town's climate goals while also improving housing affordability.

Krausert said he supports higher density and affordable housing but questioned whether this particular incentive would achieve either goal.

"I'm supportive of density bonusing," he said. "I believe that there are many places in town where it will do great things for developing some affordable housing."

He said the policy could instead create million-dollar condominiums that do little to address affordability.

"If the density creates, from one lot, multiple million-dollar condos, it's not increasing our affordability; it's likely increasing our second home ownership."

Councillors who supported keeping the policy said it should remain one of the town's tools for encouraging energy-efficient construction.

Graham said there are many ways to achieve net-zero construction and saw no reason to remove the incentive.

"I don't mind having the option there," he said.

Council also approved several other changes to the bylaw in response to public feedback.

Several proposed zoning changes were softened after residents raised concerns during the public hearing. Neighbourhoods including Railway Court, areas north of the Pond, sections of Spring Creek Drive and Riverview Place were changed from the proposed R4 zoning, which allows more intensive multi-unit housing, to the lower-density R2A designation, which still permits duplexes and other forms of gentle density. The change better reflects the character of existing neighbourhoods while still allowing modest housing growth.

"I think that this motion is a good example of how we have taken feedback from a public hearing," Marran said. "It was clear that most of these lots, if not all of these lots, were not appropriate for R4."

Staff warned scaling back the proposed rezonings would reduce the number of properties eligible for the density bonus program and, in turn, reduce opportunities for the Town to secure affordable housing units or cash-in-lieu contributions from developers.

Council also rejected plans to expand the Gateway District commercial designation along Railway Avenue north of 10 Street, keeping the existing residential zoning instead. Krausert said commercial redevelopment there appeared unlikely because it would require consolidating multiple properties.

Council also removed proposed waterbody setback changes from the bylaw after administration agreed concerns raised by the Bow Valley Outdoor Development Association warranted further review. The changes will instead be considered during the town's broader Land Use Bylaw review.

Another amendment directs town staff to prepare a "legacy use" overlay allowing existing detached homes in newly rezoned R4 areas to be rebuilt if they are destroyed.

Foubert said the proposal offered an innovative way to address one of the biggest concerns raised by residents.

"That for me addressed a lot of what I was hearing from people around their concerns with increased density that they wouldn't be able to rebuild their home the way they had it," she said.

Because council rejected the Railway Avenue commercial expansion, a related amendment to the Municipal Development Plan was no longer needed and was defeated.

After nearly a full day of debate, council unanimously gave second and third reading to the revised land use bylaw, bringing years of planning and public consultation to a close.