The City of Calgary is investing $50 million in the conversions of three downtown office properties into two rental-housing towers and a hotel.

The three redevelopments will remove approximately 675,000 square feet of office space from the market, the city announced. While the city invests $50 million, the private sector is furnishing $194 million, Mayor Jyoti Gondek said during a news conference.

Alston Properties and Slate Asset Management’s Dominion Centre at 666 Eighth Street S.W. will be refitted to comprise 132 new apartment suites with at least 25% classified as affordable housing. The Dominion Centre will receive $1.2 million from the city, becoming the first recipient of the new Downtown Retrofit Challenge funding program, which is designed to offset the costs of emission-reduction and climate-resilience measures.

The city is also helping to finance the second phase of Aspen Properties’ Palliser One conversion at 125 Ninth Avenue S.W. Taking both phases into account, a total of 395 one- and two-bedroom units will be developed.

Meanwhile, PBA Group will redevelop 168,000 sf of office space at 833 Fourth Avenue S.W. into a 226-suite Westin hotel. PBA originally planned to convert the site into rental housing.

The Palliser One and PBA projects, both previously announced, are receiving funds through the city’s downtown office-to-residential program. Known as DIP, the program was paused in October because its $153-million budget has been exhausted.