REGINA — A possible subclass property tax on standalone surface parking lots (SSPL) in Regina’s city centre is not being recommended by area stakeholders, according to feedback gathered through city consultations.
The city launched stakeholder meetings and a public survey after Regina city council directed administration to explore the parking lot subclass through a motion passed in January 2025, which former councillor Andrew Stevens originally brought forward.
The addition of a potential subclass is intended to encourage development on SSPL, but Luke Grazier, the City of Regina’s director of sustainable infrastructure, said feedback received indicates achieving that goal could be challenging.
“They're not being redeveloped mainly due to market conditions, construction costs and land economics.”
Some stakeholders suggested an incentive program could be more effective in stimulating redevelopment than introducing a subclass.
Grazier noted Regina already has its City Centre Incentive Program, which provides a five-year tax exemption on new developments for qualifying vacant lots, but said other options could be explored.
“So we are always looking at whether there are more effective incentives out there and how best to utilize some of those tools.”
Another concern raised by stakeholders was the potential impact on parking availability.
According to Grazier, 95 SSPL in the city centre area are designated for employees, customers, businesses or tenants of a nearby home or unit. In total, the city counted 142 SSPL in the area, meaning roughly 66 per cent of parking lots are intended for specific uses.
Additionally, one Crown corporation indicated its SSPL are at capacity, with around 400 people on a waitlist.
Grazier was asked whether developing a structured parking facility could address availability concerns, but said there are challenges associated with construction.
“When you're looking at tens of millions of dollars to construct these parkades and maintenance over time, I think that's really the largest barrier, especially on the private side.”
Grazier also noted that meeting accessibility standards could present challenges for a parkade.
“They're gonna be looking for a spot, say closer to their appointment that they have to go to, and it might be more challenging for them to even park in a parkade that might be several blocks away and then have to walk over.”
To improve access to downtown, the city is exploring various strategies to support businesses, including potential changes to transit and parking in the area.
If a subclass tax were introduced, the city would not receive any additional tax revenue.
In other Canadian municipalities, parking-related revenue is directed toward other city services.
“In the cases of Vancouver and Montreal, they can use revenue from their marketing subclass and put it back to direct it directly to transit investments,” noted Grazier.
However, Regina is governed by different provincial legislation, meaning that approach cannot be implemented locally.
As for whether administration will recommend that council implement a property subclass, Grazier said it is too early to say.
Adding incentives to encourage development could also be considered as part of the report.
The report will be tabled to council on Oct. 7.
