Major Stephen Avenue development scrapped before requested assessment began

A major development project on Stephen Avenue — which included plans for office and residential towers, retail space and a hotel — has been scrapped by development company Triovest.

Dubbed Stephen Avenue Quarter, the project was proposed last spring and then paused in February after the Alberta government requested a heritage assessment of the street's existing buildings.

It would have seen three large towers transform the block between Centre Street and First Street S.W., and Stephen Avenue and Seventh Avenue. One proposed tower was planned to be the tallest building in Calgary, at 66 storeys.

Ryan Schott, vice-president of marketing and communications at Triovest, said in an emailed statement that the company remains committed to investing in Calgary.

"The original development plan centred around an anchor tenant driving much of the application's programming and is no longer a part of the project plan, which means withdrawing the permits," said Schott.

He didn't say who the tenant was, but said the company is taking time to envision how the proposed project fits into the downtown core.

Heritage assessment had not begun

Josh Traptow, chief executive officer of Heritage Calgary, has been raising concerns about the heritage integrity of existing buildings with this development.

There are a total of 17 historically significant sites present in the redevelopment area, seven of which are legally protected under heritage designations from both municipal and provincial governments. 

Of those buildings, 15 would have been affected by the project.

"We were kind of left scratching our heads as to how the developer was going to just have the facades of these buildings when these buildings were legally protected," said Traptow on CBC's The Homestretch.

To his understanding, Triovest didn't put forward a consultant to take on the heritage assessment.

"Now with the [withdrawal] of the permits, the province will likely no longer see a need to have a resource impact assessment, given there's no proposed development," Traptow said.

He says he's happy to provide developers with advice on best practices when it comes to heritage preservation.

"I'm hopeful that whatever comes back will perhaps be more sympathetic when it comes to heritage. That heritage will be viewed as kind of an anchor point, as an asset to development."

Nancy Bishay is the spokesperson for Alberta's culture minister, Jason Luan.

"I can confirm that the Historical Resource Impact Assessment had not commenced," Bishay said in an emailed statement.

LISTEN | CEO of Heritage Calgary Josh Traptow comments on scrapped proposal:

More hotel capacity needed

Sol Zia, executive director of the Calgary Hotel Association, says he's disappointed that an additional hotel for the downtown core has fallen through.

He says there's sufficient downtown capacity to meet current demand, but "there is need for additional hotel rooms to meet the demand from the new convention centre opening and the existing convention centre already in place."

The BMO Centre expansion is expected to open in June 2024. Zia says hotel demand will likely grow through to 2028.

Zia says he's looking forward to other potential developments that are on the horizon, including the prospect of a new hotel near Stampede Park.

"We are hopeful for other developments that are planning to be approved and delivered in the coming years," he said.

Downtown revitalization strategy on track

Mayor Jyoti Gondek says the project falling through isn't a reflection of Calgary's recovery.

"We're doing very well," she said. "Two years into our 10 year plan for downtown revitalization, we're already at 30 per cent of target."

She says she remains optimistic that Calgary will see more development projects that will bring more life to the downtown core.

Terry Wong, councillor of the area, says he knows developers are navigating interest rates, inflation and the cost of materials.

"That is something I know that they're evaluating and they're perhaps readjusting the development project for something in the future. As to when, I have no idea," said Wong.

He also says he'd like to see more investment on Seventh Avenue.

"A lot of those buildings are derelict and preservation numbers is important," Wong said. "But also at the same time, creating a safe public realm on the LRT line is just as important."