Downtown Business Association aiming to wind down operations

“After 13 years of service to you and our beautiful downtown, it is with great personal sadness that we find ourselves here, but our message remains clear – addressing the unique challenges of our downtown should not rest solely on your shoulders. We cannot, in good faith, collect a levy that does not enable us to provide the essential services needed for our evolving downtown landscape.”

Red Deer Mayor Cindy Jefferies said it’s sad to hear, as the DBA has been a part of the community for many years, but not surprising given the financial struggle they’ve faced in recent years.

She explained the association has done great work in programming, events, as well as marketing and promoting businesses and activities in the downtown core.

Jefferies said in recent years, the DBA has stepped into upgrading and fulfilling some of the contracts the city has put forward in form of the clean team and the needle and debris team.

“They have done important work in our downtown, and we won’t replace them overnight, that’s for sure,” she said.

All funds for the Downtown Business Association are raised through the Business Improvement Area Levy, which is mandatory for businesses that operate in the city’s Business Improvement Area. These funds are then used to promote the Business Improvement Area through marketing and events, as well as providing advocacy support to local government on behalf of the business community.

The DBA board says the responsibility for funding downtown initiatives should not be left to the business community and have consistently stood by that.

Despite their efforts, the board determined the funds gathered through the Business Improvement Area Levy were insufficient to effectively address the growing challenges of the current operating environment.

The DBA asked for what it says is essential funding at the annual DBA budget presentation in council chambers. Funding needed to put the Greater Downtown Governance Committee’s recommendations in motion. However, the request was not approved, and instead, the city offered a one-time $100,000 grant-in-lieu, paired with a proposed 60 per cent increase to the Business Improvement Area levy in 2026.

As a result, the DBA said increasing the levy would place a strain on local businesses who are already struggling and hurt the DBA’s role as an advocate. In addition, operating with the reduced funding of $225,000 would require further staff reductions and a significant cut in programs.

Mayor Jefferies said council was in a tough position, and the timing of the request, coupled with the work the Downtown Governance Committee is doing, didn’t seem to fall into place in the right order.

“The DBA had also made a decision to try and undertake some of the key work that the Downtown Governance Committee recommendations highlighted, coming back to council,” she said. “It was an awkward spot for council to be in because no one from the committee or from the city asked the DBA to enter into that space and take on that role at this point in time. It could’ve come in the future, but a decision had not been made. It felt like they saw work that they could do and perhaps they could do it well, and put in a request to fund that work. Council felt that work was premature.”

Beginning Jan. 1, 2026, the City of Red Deer will become the primary contact in place of the DBA for matters including downtown support programs, business district coordination, events, safety and cleanliness support, and stakeholder engagement.

“The incredible staff at the Downtown Business Association have consistently delivered on their mandate with outstanding dedication and effectiveness,” said DBA board chair Brandon Bouchard. “Through their efforts, they have successfully promoted the downtown area, organized impactful marketing and event initiatives, and provided steadfast advocacy support for the business community. Their work has extended well beyond the legislated requirements, as they have proactively responded to the evolving needs of downtown businesses, adapting to challenges and supporting operations within a complex and changing environment.”

In a statement from the City of Red Deer Wednesday, they explained that while the DBA has signalled its intent, it cannot dissolve independently.

The city says it understands this situation may create uncertainty for downtown businesses and wants to update the public as it continues to unfold.

The City of Red Deer explained under Alberta’s Municipal Government Act and the Business Improvement Area (BIA) Regulation, any formal disestablishment requires a city council–led process, which includes opportunities for taxpayers to provide input.

Until that process is complete, the DBA remains legally in place and responsible for delivering services, say city officials.

“The city will work with the DBA board to ensure that their compliant with that and that we do that in a good way,” Jefferies added. “Part of the disestablishment is that the city would have to initiate a vote of the members of the DBA for them to vote for the disestablishment of their own association. It’s not something council can make a decision on and not something their board can fulfill without a vote from members.”

The City of Red Deer will continue to post updates on its website.

by rdnewsNOW staff

Downtown Business Association aiming to wind down operations

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