PRINCE ALBERT, Saskatchewan —The City of Prince Albert has introduced a new development tax incentive program aimed at stimulating both commercial and multi-unit residential construction, part of a broader effort to address housing shortages and encourage private investment across the city.
Approved by City Council on July 21, 2025, the initiative provides a declining municipal tax abatement over four years for qualifying developments, offering significant relief to developers as they complete new projects and bring them to market.
The Building and Development Department confirmed that the program applies to all new commercial or multi-unit residential projects—those with five or more units—that receive city approval after July 21.
Details of the incentive program
The incentive introduces a stepped abatement schedule designed to gradually transition developments to full taxation over five years:
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70% municipal tax abatement in the first year following project completion
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50% abatement in the second year
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30% abatement in the third year
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15% abatement in the fourth year
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Full taxation by the fifth year
Officials say this structure balances short-term relief for developers with long-term fiscal sustainability for the city, ensuring that new projects contribute to the local tax base while encouraging near-term investment.
Mayor Bill Powalinsky said the program sends a clear signal that Prince Albert is ready to grow and willing to support private sector participation in that growth.
“This is a bold step toward supporting growth and addressing the need for more housing and commercial development in Prince Albert,” said Powalinsky. “Whether in a new neighbourhood or an established one, we want to send a clear message: we welcome investment and are prepared to partner with developers to help make it happen.”
Tackling housing needs and promoting investment
The decision comes amid growing concerns about housing affordability and availability in the city. A recently completed Housing Needs Assessment identified a significant shortage of residential units across multiple categories, including rental apartments, family homes, and seniors’ housing.
City officials say the new incentive aligns with broader economic and planning priorities, aiming to reduce barriers for developers while expanding the mix of available housing options.
The program’s dual focus—on both residential and commercial development—reflects the city’s strategy to stimulate overall economic activity, enhance downtown vibrancy, and expand the municipal tax base.
By targeting multi-unit residential construction, the policy aims to encourage medium- and higher-density housing projects that can make more efficient use of city infrastructure and services.
Citywide eligibility and impact
Unlike some previous incentive programs limited to specific zones or redevelopment districts, the new tax abatement applies citywide. Officials say that flexibility is intended to attract investment in both emerging neighbourhoods and established areas where infill opportunities exist.
Developers in all parts of Prince Albert can apply for the program, provided their projects meet the eligibility criteria and receive municipal approvals.
City planners note that by applying the incentive broadly, Prince Albert aims to create a consistent, predictable investment environment that encourages long-term confidence among builders and investors.
Supporting economic growth and local employment
Economic development officials expect the program to have a positive ripple effect across multiple sectors, including construction, materials supply, and local trades. By lowering upfront costs and providing predictable tax relief, the incentive is expected to improve project feasibility and accelerate timelines for developments already in planning stages.
“This program recognizes the essential role private development plays in meeting community needs,” said a spokesperson for the city’s Building and Development Department. “It’s about creating the right conditions for investment that benefits residents, businesses, and the local economy.”
The initiative also dovetails with Prince Albert’s broader efforts to support workforce expansion and retain local talent. By fostering a more dynamic housing market and increasing the availability of commercial spaces, city leaders hope to strengthen Prince Albert’s position as a regional hub for northern Saskatchewan.
Looking ahead
The Building a Better Prince Albert strategy, which includes this incentive, emphasizes smart growth and collaboration with the private sector. Municipal leaders have described the program as an important first step in tackling the city’s housing gap while attracting new employers and retail opportunities.
Developers seeking to participate can find application details and eligibility requirements on the city’s official website at citypa.ca/grow.
With this new initiative, Prince Albert joins a growing number of Canadian municipalities adopting targeted fiscal tools to encourage construction amid nationwide housing pressures.
For city leaders, the approach represents both pragmatism and optimism—a deliberate push to build the infrastructure and housing needed to sustain economic growth in the years ahead.
