Council approves reallocation of funds for downtown façade and storefront improvements

Officials anticipate the funds will be able to leverage an estimated $250,000 in private investment in downtown.

Mayor Tara Veer says the reallocation of funds will provide a short-term boost to downtown businesses.

“Getting those funds out the door will act as an economic stimulus,” said Veer. “I think it can serve as a part of our economic recovery plan. This meets the short-term demand, protects the long-term, and we will recalibrate the program when we reconvene in December anyway.”

Councillor Dianne Wyntjes was pleased to see such strong demand for the program.

“What’s important to me is that we’ve got interest from our downtown businesses. Hopefully we’ll see some good outcomes from it.”

“I’m glad to see we had good uptick on this initiative in our downtown,” added Councillor Tanya Handley.

On Sept. 30, 2019, council approved, in-principle, eight initiatives intended to further council’s overall vision for Red Deer to be an economic leader and have a strong, dynamic economy fostered by entrepreneurship and innovation.

In response, administration developed the Downtown Economic Incentives Program.

From October 2019, to January 2020, administration worked to prepare the specific details of these initiatives, and developed key components of the program.

Through 2020 Budget decisions, the recommended program budgets were approved with City administration responding to approximately 50 enquiries from businesses, organizations and property owners about the various incentives.

The first intake period ran from Feb. 15 through to Mar. 15, with 27 applications received.

If all Façade and CPTED (Crime Prevention Through Environmental Design) improvements applications were funded, officials note it would be approximately $325,868, and would leverage an estimated $705,000 in private investment in downtown.

As a result, administration recommended the option of reallocating funds from undersubscribed incentive streams to provide the requested additional funding of $230,636 for the remaining eligible applicants.

Undersubscribed incentive streams include the Environmental Site Assessment Rebate, Demolition of Vacant and Derelict Sites Rebate, and Residential and Mixed Use Development Grant. The Utility Connection Fee Rebate remains a separate category of funds as it is funded by Utility dividends.

Councillor Lawrence Lee was the only member opposed to the reallocation of funds from the undersubscribed programs.

“There’s some misunderstandings of a lot of other programs,” said Lee. “The original allocation of funds provides equity. I just think it’s too quick, just because of the timing and things that have been happening due to the pandemic crisis.”

“We need to strike a balance of what businesses in the downtown today really need and are really looking for,” countered councillor Vesna Higham. “It’s very clear from the report that the façade and storefront improvement category is very appealing and popular.”

“It’s not shutting the door to the other programs. I think it’s prudent,” exclaimed Councillor Michael Dawe.

Councillor Frank Wong supported administration’s recommendation for reallocation as well.

“It’s nice to see a bit of help for our downtown to make it look better,” said Wong.

Councillor Ken Johnston, meanwhile, wanted to see an additional $100,000 taken from the City’s operational reserves to make funds available for the Façade and Storefront Improvement Rebate program during a second intake planned for August — a motion voted down by the other councillors.

“We have a program that’s getting tremendous uptake,” admitted Johnston. “I think administration is bang on with their recommendation. We need to react to this in a swift and confident manner and get these applications funded.”

Administration continues to work with applicants through the COVID-19 pandemic on potential impacts to project timelines.

All projects approved for funding are scheduled to be completed by the end of 2021.

by Sheldon Spackman

Council approves reallocation of funds for downtown façade and storefront improvements

What's Trending