COLD LAKE — Property owners who allow residential buildings to fall into serious disrepair could eventually face higher property taxes as the City of Cold Lake looks for new ways to address derelict homes.

Cold Lake City Council gave first reading to Bylaw No. 917-FN-26 during its September 29 regular meeting. The proposed bylaw would establish a separate property assessment subclass for derelict residential properties, allowing council to apply a higher tax rate to encourage owners to repair, demolish or sell neglected buildings.

The City says the proposal isn’t aimed at homeowners with overgrown lawns, unshovelled sidewalks or properties that simply need some maintenance.

Instead, the focus is on residential buildings with significant structural deterioration, safety concerns, unauthorized access or a history of repeated complaints.

These properties can become ongoing concerns for neighbouring residents and require repeated responses from Municipal Enforcement, RCMP, Fire Services and other agencies.

In 2023, Cold Lake launched a more proactive strategy targeting six of the community’s most concerning derelict properties. The City issued demolition orders and established financial assistance to help owners cover demolition costs.

According to administration, five of those six properties were successfully addressed.

However, several other properties continue to generate complaints, prompting the City to consider additional measures.

Cold Lake is looking at an approach already used by several Alberta municipalities, including Edmonton, Wetaskiwin, Athabasca and Bonnyville.

Edmonton was the first municipality in Alberta to establish a derelict residential tax subclass, applying a tax rate three times its standard residential rate.

According to figures presented to Cold Lake council, Edmonton initially identified 202 derelict properties. Within the first year, 54 were demolished, 48 were sold and eight were restored to livable conditions.

The municipality also levied approximately $575,000 in additional property taxes.

During Cold Lake’s council discussion, questions were raised about how derelict properties would be defined, including whether homes that are still occupied but in serious disrepair should qualify.

Council also discussed the importance of distinguishing genuinely derelict buildings from properties with ordinary maintenance concerns.

While the proposed bylaw would establish the assessment subclass, it would not automatically increase property taxes.

Council would still need to approve the bylaw and determine whether to establish a higher tax rate during a future property tax process.

For now, the City is considering another tool to encourage property owners to address neglected buildings before they become ongoing safety concerns for their neighbours.