Council backs 10-year Downtown Revitalization Strategy amid rising office and storefront vacancies

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Staff are being directed to bring the strategy before Council later this year. Pictured: Hamilton City Council. Photo Credit: City of Hamilton.

Hamilton City Council recently voted for staff to develop a 10-year Downtown Revitalization Strategy as issues such as crime and homelessness continue to plague businesses, contributing to rising office and storefront vacancies.

The funds for the new strategy will be taken from the Economic Development Initiatives Capital Project and staff are directed to bring the strategy to Council before the end of 2025.

Staff were also directed to provide a new annual State of the Downtown Report going forward with detailed metrics, to develop a pilot Downtown Office to Residential Conversion Financial Incentive Program, and to make Graffiti Removal Grants on private property permanent.

The 10-Year Downtown Revitalization Strategy will reportedly “establish a common, forward-looking vision for the Downtown and identify the key corporate actions, plans, initiatives, and metrics needed to ensure that corporate cross departmental prioritization, funding, and resources are being provided to address Downtown’s challenges in a timely, long-lasting, and coordinated matter.”

Staff say that the office landscape in Hamilton’s downtown is a “challenge” with the office vacancy rate at 18.2 per cent in 2024, which is a 4.3 per cent increase from 2023.

The occupancy rate for commercial storefronts in the Downtown and International Village Business Improvement Areas are 71.0 per cent and 71.9 per cent respectively compared to the Hamilton-wide average of 87.0 per cent.

The report from staff states that “the consensus and sentiment expressed by the Downtown business community” continues to be “that the Downtown is in a state of decline and in need of urgent attention.”

Staff add that a number of office leases will be expiring in 2026 “creating the potential for large tenants to either leave Downtown for suburban offerings or to right size existing office needs to reflect hybrid work models.”

Staff say that many of the biggest challenges facing the Downtown have come as a result of the pandemic, including hybrid work arrangements, an evolving retail sector, and increases to interest rates.

Indeed, the report says that the “primary driver” of Downtown revitalization in recent years has been residential development, but increases to interest rates by the Bank of Canada impacted developments in the core and purchaser demand.

The document adds that there is also an “overall declining perception of Downtown as a safe and vibrant place to live, work, and play.”

Additionally, a survey of Downtown businesses collected in August 2024 found that “top concerns shared by businesses included increased presence of encampments locating near businesses and increased incidences of violence and property damage posing challenges for employee retention and customer attraction.”

It should be noted that the Councillor for Downtown Hamilton (Ward 2) is Cameron Kroetsch who has voted against police budgets and sought to reduce the Hamilton Police Service budget.

The report on the Downtown states that Business and Economic Development staff support the Hamilton Police Downtown Core Patrol, which includes six officers, and that it is “vitally important” to improving the Downtown.

Staff even suggested that the program should be expanded further.

Meanwhile, Councillor Kroetsch has expressed concern with the program, saying that he is “deeply concerned about the beat cop process.”

He also suggested that multiple community members “don’t feel safe” around police.

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