CMLC sells land east of Central Library for a pair of residential towers

The Calgary Municipal Land Corporation (CMLC) has sold two parcels of land that are set to be developed into residential towers just east of Calgary's Central Library.

Local developer Bankside Properties bought the land, in partnership with Sumus Property Group, to build a pair of six-storey buildings, each designed to offer roughly 80 one- and two-bedroom rental units. The buildings' ground-floor units are planned to have the flexibility to be converted into commercial space in the future.

Development permits for both buildings are scheduled to be submitted before the end of the year, with groundbreaking expected in late 2025. Bankside and Sumus are investing roughly $60 million into the project.

Cole Richardson, managing principal for Bankside Properties, told news media on Monday that the towers won't target the premium rental market but instead will be designed to be affordable to most people. 

The company wanted to develop in the East Village, he said, because of the mix of businesses already in the neighbourhood, its walking distance to downtown Calgary, and the CMLC's vision for the neighbouring culture and entertainment district. The buildings will bolster Calgary's supply of housing as the city's population grows, Richardson said.

"There's a bit of a supply problem right now. We're excited to add to that supply. Now these aren't really large buildings, but every new building helps fill that housing gap," Richardson said.

Kate Thompson, CMLC president and CEO, noted the corporation asked the developers to complement nearby historic buildings like the St. Louis Hotel and the Hiller Block.

"The added pressure on this property is that you're right next to the new Central Library and the St. Louis Hotel, and also in a challenging market," Thompson said to media on Monday. "We understand that and know how important it is to bring residents into East Village, and keep the momentum with the delivery of development opportunities."

Thompson anticipates construction to begin on more than 400 units in the East Village in 2025, as part of an overall plan to build more than 900 new homes in the neighbourhood in the coming years.

In 2022, the CMLC announced partnerships with developer ONE Properties for two mixed-use towers in the East Village, and with Minto Properties for a 100-unit residential development along the city's RiverWalk. The CMLC said both projects are advancing through financing and design development, with an update expected on the projects next year.

The higher-density projects have been more challenging to deliver in recent years, Thompson said, because of the rising cost of building materials. Statistics Canada found that Calgary saw the largest increase of residential building construction costs among the 11 metro areas it measured in each of its quarterly reports on building construction prices this year.

"It's incumbent upon CMLC to look at opportunities to increase development, increase rooftops and residences here, even amidst all those challenges," Thompson said.

The CMLC also announced it conditionally sold the temporary site of Bounce Games Park to a developer partner. It expects to offer more details on the project early next year.

At Fourth Avenue and Macleod Trail S.E., Trico Homes has submitted a development permit for 255 residential units and three commercial units, including a daycare with a rooftop outdoor play space, the CMLC said. It also announced real estate firm Triovest is in the land-use pre-application phase with the city for two mixed-use towers north of Studio Bell.