By Josh Hall (Twitter: @Vancan19) and Alessia Proietti

Commercial Growth Area

City to annex County land to the north for regional ‘power centre’

Apr 5, 2023 | 5:00 PM

The City of Red Deer and Red Deer County have agreed to an annexation of land to the city’s north, to eventually be redeveloped into a regional ‘power centre.’

With full build-out several years away, the 215.77 hectares of land is located mostly to the northwest of the QEII Highway and Highway 11A overpass; it starts at 11A between the QEII and area known as Linn Valley, and then goes north just past the CN railway (see image below).

City and county councils passed resolutions of endorsement at their meetings April 4 and 5, 2023, respectively, marking a continuation of positive and successful intermunicipal relations, they say. The annexation was first approved in principle a year ago, leading to public consultations.

“This annexation speaks to a potential economic development opportunity to attract and retain business investments, create employment opportunities, and boost the economy,” said Red Deer Mayor Ken Johnston. “Commercial development along the QEII Highway leverages Red Deer’s central location and contributes to expanding and diversifying Red Deer as a long-term economic hub. I am so grateful to our neighbours with Red Deer County for the positive and productive discussions, and to the landowners in the area for the open and robust conversations.”

Red Deer County Mayor Jim Wood says the county will benefit from this process.

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“Right beside this area is Linn Valley and many of them are probably wondering what it’ll be like to live next to a commercial property,” he says of the 89-home community. “Those people just want to enjoy their homes, and their concerns are legitimate. But I don’t anticipate there being problems with this development, and it should be good for the region.”

County council’s vote wasn’t unanimous, with Councillors Dana Depalme and Christine Moore opposing. Public input saw eight were in favour of annexation, four were neutral, and 43 were in opposition.

Top concerns from the public were traffic/access, availability of lands and time of annexation, wetland preservation, and noise.

Access from the Hwy 11A and 75 Avenue intersection, which is too small as it stands, believes Councillor Depalme, is where the former Minister of Transportation had said access would need to be. The current minister, however, has indicated a willingness to look at access off the QEII, The City notes.

Depalme said she simply wasn’t getting definitive enough answers on the access issue in order for her to vote in favour.

The City also notes that while future development could impact wetlands, any work will be in alignment with The City’s values and regulations around environmental protection.

Councillor Moore did not respond to our request for comment by publication time.

An Annexation Application and Negotiations Report will now be submitted to the Land and Property Rights Tribunal (LPRT), with the parties looking to make the annexation official by law by Jan. 1, 2024 at the latest.

Once the application is filed with the LPRT, a public hearing will be scheduled — in about seven weeks.

READ MORE: Red Deer wants to expand: land annexation north of city

(City of Red Deer)

What will power this centre?

The annexation does not change land ownership within the area; CN Rail and the Hazlett family are the only two landowners. If the annexation is supported by the province, area structure plans will then be prepared and adopted into bylaw by city council.

These annexed lands are intended to be developed as a regional commercial ‘power centre’ development along the QEII, providing The City with a significant economic development opportunity.

“We currently have a deficiency in highway fronting commercial land, and we look forward to the economic benefit for our community that will come as a result of a successful annexation,” said City Manager Tara Lodewyk.

Expanding on the meaning of ‘power centre,’ City Major Projects Planner David Girardin explains what people can expect to eventually see there.

“The term goes back to the 80s, and it means essentially a large commercial area, on the smaller end around 500,000 square feet of retail space, but nowadays probably characterized as larger than that,” says Girardin. “It’s kind of what you’d find in most North American cities, a larger outdoor shopping mall, anchored by several big box stores, and then a number of smaller retailers and restaurants. It’s going to be large.”

Asked if it compares to the strip of outlet stores near Edmonton International Airport, Girardin likens it more to the IKEA-anchored South Edmonton Common.

The developer which has been working with the Hazlett family is North American Development Group, which has a portfolio of over 60 retail developments across Canada and the United States.

As is standard, The City will compensate the County for lost tax revenue from the annexation, in alignment with Intermunicipal Development Plan (IDP) policies, for a total of $11,701.24:

· 100 per cent of the lost tax revenue in year one after the effective annexation

· 80 per cent in year two

· 60 per cent in year three

· 40 per cent in year four

· 20 per cent in year five as the final payment

New land will add some operational and capital costs for the City’s Parks and Public Works department, administration, and more. The largest increase will be for municipal policing at $429,831 operationally and $95,000 in capital. The City said the costs won’t have an adverse effect on financial capacity.

According to the City, annexation is used by municipalities to realign jurisdictional boundaries to ensure a sufficient land supply for long-term development. The IDP between the City and County recommends the City have within its boundary a 30-to-50-year supply of developable land for growth purposes. Recent City data indicates they have 20 years of developable land available.

For more information, visit www.reddeer.ca/annexation.

READ MORE: Annexation north of city proves strong relationship with Red Deer County