All cities and most towns across Canada have a growing problem—what to do with older, sometimes empty, often derelict—industrial, commercial and institutional spaces.

In other words, places such as schools in older neighbourhoods that don't have the child population anymore to support them staying open. Or closed manufacturing plants, usually in an industrial park or district. Or commercial properties that are no longer viable—many shopping centres leap to mind.

How communities repurpose such buildings is often a critical factor in maintaining or regaining the viability of a street or neighbourhood. There can be challenging negatives to overcome, such as pollution in and around an industrial plant that may have buried chemicals, or other pollutants that have leeched into the soil. This can make rehabilitating the property very expensive and time consuming. It is not unusual now for governments (typically provincial and municipal, but sometimes federal as well) to pay for the clean-up of the site. One of the big concerns for a company buying such property is the on-going liability; they are often looking for some indemnity. Governments are usually the only ones able to step up and green the site.

Once that is accomplished, many of these former industrial sites become attractive to new buyers. They are often well-located, perhaps with easy access to rail sidings or highways. And of course, the new owners are going to build clean new plants that will mean much local hiring. Manufacturing plants today are usually spotless, often using robots and hi-tech; they demand highly trained and skilled workers who are well-paid.

Commercial properties are a quite different concern. They might be abandoned retail or commercial properties in the downtown area. This is a real concern for cities because the public (rightly) hates dark, dangerous and abandoned stores or buildings. Many people don't feel safe walking by them, and sometimes they become a refuge for the homeless or street gangs.

These are a particularly complex problem for local governments. There is no easy fix. There is no standard template. Every street, every city, has different challenges. A few cities charge the same property taxes for a vacant building as for a full one, to try to encourage the landlord to fill that empty space. Some cities urge owners to at least put murals or pictures or lights or ads on the windows to eliminate the dark, boarded-up sign of failure. Other city halls have moved some civic departments into a 'Main Street' setting to promote development. More flexibility for zoning can assist businesses, for example by allowing restaurants and bars to set up patios on the sidewalk.

Institutional properties are one of the most fascinating opportunities for cities. Once in a rare while a municipality receives a big chunk of land—say a hospital that is closing—that can be a game-changer. The opportunity to develop a new housing and mixed commercial-institutional area is exceptional. This is hitting the jackpot for a municipality—and provides a once-in-a-generation opportunity to really design and build a fabulous new community.

Acquiring older schools can be interesting. The city usually gets the building—often aging, admittedly—and some recreational land around it. My very creative friends who run Artscape in Toronto have had success in turning older schools into 'maker spaces'—in other words, studios for artists, artisans and creative workers.

I love this concept, which of course could also be expanded to downtown buildings, shopping centres in trouble, and even new residential properties. Whenever you can promote arts and cultural activities, I think you enhance the facility as well as the neighbourhood. Repurposing these usually older, maybe even abandoned, sites can be a terrific win-win.

These can also become new economic generators. More and more people are interested in and supportive of artisan efforts in everything from bread baking to sculpting to working with leather. When you create hubs for these activities you also create new economic zones that will attract shoppers and generate income for the artists.

Cities need to get out of their old, structured thinking about what to do with empty buildings or lots. They need to be flexible and innovative, and to welcome commercial property owners wanting to try new solutions. It is the only way to repurpose and reenergize some parts of their city.