Perception not necessarily reality, some say, as City launches downtown rental grant

However, according to the City, departures don’t outnumber arrivals, and turnover is expected anyway.

The latest Vacancy Report from Salomons Commercial, cited to rdnewsNOW by the City, shows a 5.41 per cent downtown retail vacancy rate in Q2 2023. That’s down from 5.74 per cent in Q1, and down more than two percentage points from 7.85 per cent in Q4 2022.

Lower vacancy rate means fewer empty spaces, but what about the one block stretch of the affectionately known ‘Little’ Gaetz from Ross Street to 49 Street?

That block, as of August 4, has four empty street-level spaces. DOSE’s impending exit will make five.

DOSE ownership, which operates a much newer location in Capstone, couldn’t speak about their exit from downtown.

One other downtown business owner, speaking to rdnewsNOW on the condition of anonymity, says they’ll be gone by the end of year, but wouldn’t specify why.

Bobby-Jo Stannard, The City’s Superintendent of Community Development, acknowledges vacancy is more apparent on DOSE’s block, but denies any correlation between recent downtown departures and the rental incentive’s launch.

She explains the grant came to be when a committee put together the Downtown Activation Playbook in 2021.

“That committee talked about the importance of having vibrant, active spaces ” says Stannard. “This launch is a coincidence in terms of recent relocations, but it’s also timely as we try to continue attracting businesses downtown.”

‘Activations’ — something one can do/see when downtown — are key to the City’s toolbox.

Activations may include events, the Ross Street Patio, the ghost statues, murals, flowers in City Hall Park, playgrounds, plazas, and the museum, among others.

“In your downtown, you should have around 250 activations. They can be various sizes, and encourage people to come downtown,” says John Sennema, Manager, Land and Economic Development. “City council has put a lot of money into activations. If you get people having positive experiences, they’re going to spend money in shops and restaurants.”

(rdnewsNOW/Josh Hall)

Stannard shares conversations are being had about how to encourage later hours of operation, with many shops closing before the dinner rush.

A new Downtown Community Association for owners, residents and agencies is in the works, and collaboration continues with the Downtown Business Association.

“Downtown has the highest density of businesses in Red Deer and plays an important role in the social, cultural and economic health of our community,” adds Stannard. “We look forward to seeing fresh business concepts come to life in downtown Red Deer through this new grant.”

Priority areas for applicant selection include vacant street-level spaces along 50 Avenue between 48 Street and 53 Street, plus spaces along 49 Street between 48 Avenue and 50 Avenue.

Notably, that includes the aforementioned stretch of Gaetz where DOSE and Sunworks Living are.

Sunworks, along with the section it’s in — the Metropolitan Block; so named after the former Metropolitan department store — has been owned by former city councillor Paul Harris for a dozen years.

Harris agrees perceptions are perhaps not representative of what’s happening.

Paul Harris is owner of the Metropolitan Block of properties on Little Gaetz, and has run Sunworks Living downtown for 12 years. (rdnewsNOW/Josh Hall)

“I don’t see the exodus of businesses leaving because I know of the ones moving in. Vacancies on the main level become concerning when people driving by think the downtown is empty even though it’s mostly not,” says Harris. “Occupied units help because when someone is down here for a haircut, they may come to us for lunch or shopping.”

Harris likes the rental incentive because new business owners often have trouble in the first few months juggling rent with upgrades and marketing.

It could also help businesses find success despite still climbing out of the COVID hole.

“When a downtown changes its personality, which happens as they gentrify, car-centric businesses tend to move to strip malls and places like Gasoline Alley. This allows more pedestrian-centric businesses to come in. We’re in a transition phase with the downtown and it’s a huge opportunity,” says Harris, who’s also proud of what he calls the ‘entertainment district’ he helped create on Ross Street.

“We’ve got three years to make up and debts to pay; interest rates have increased, and the federal government wants its COVID rental subsidy back. Instead of people being able to come and have lunch, their mortgage has gone up and they have less disposable income. It’s a double whammy.”

Meantime, Sennema is far from the belief that things are doom and gloom downtown.

“I don’t think things are as dire as some perceptions suggest. There are positive things going on downtown; it’s adjusting. We’re not sticking our head in the sand either. On the economic development side, we have people visiting businesses and others to have conversations. We do have really good pedestrian and traffic counts in our downtown,” he says.

“From my perspective, we’re always looking at the businesses leaving, but are we ever talking about the ones going in? There’s a new arcade shop going in on Ross Street, and a new restaurant will soon fill the former Hudsons at Ross and 49 Avenue. The investments we’ve made with the Ross Street Patio have been well-accepted and people like the programming there.”

rdnewsNOW inquired about other empty downtown properties.

The old BMO building, at Gaetz Avenue and 49 Street downtown, has sat empty for a while now. (rdnewsNOW/Josh Hall)

The former BMO branch at Gaetz Avenue and 49 Street was formerly listed by Salomons Commercial for $2 million. The City, nor Salomons could confirm what its status is, and BMO didn’t respond to our request for comment.

Nearby, the Empire Building on 48 Street had a section virtually destroyed by fire in October 2021. The City says it has a role to play in ensuring buildings don’t become or remain derelict; in this case, due to non-compliance from the property owner to bring it up to a presentable standard, a Municipal Government Act order has been issued. The process is lengthy, but if the non-compliance continues, it could lead to court orders, the City says.

The Empire Building on 48 Street, pictured earlier this summer, remains with a portion boarded up, nearly two years after an October 2021 fire. (rdnewsNOW/Josh Hall)

Applications for the 2023 Vacant Spaces Grant funding cycle opened August 1. The deadline to apply is September 1, 2023 by 4 p.m. For more information on the Vacant Spaces Grant program, visit reddeer.ca/vacantspaces.

by Josh Hall (Twitter: @Vancan19)

Perception not necessarily reality, some say, as City launches downtown rental grant

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