St. Albert city council has two main items on the agenda for its Sept. 19 meeting: the possible formation of a Business Improvement Area downtown, and second and third reading of a $20.5 million borrowing bylaw for Phase 3 of the St. Albert Trail improvement project.
Business Improvement Areas (BIAs) are provincially regulated in Alberta under the Municipal Government Act, and are technically corporations established through municipal bylaw. There are roughly 35 BIAs in operation throughout the province, with most being located in Edmonton and Calgary.
“BIAs work to address specific issues, fill support gaps, and create additional economic value within a geographically defined commercial area,” reads a report to council written by St. Albert economic development director Mike Erickson.
Unlike a chamber of commerce, which also works to advocate for and improve business interests, BIAs are funded through a tax-levy assessed to all businesses within the BIA's geographic area. Those funds can be used for things like marketing, visitor attraction, event coordinating, strategic plans, beautification, crime prevention, and more.
“All businesses within a BIA become members and are required to pay a specific BIA tax that funds the programs, activities, and interests of the membership,” reads Erickson's report.
“Municipalities also have certain legislative authority and requirements, which include ... approving a BIA's board of directors and annual budget, and collecting and transferring BIA taxes.”
On Tuesday, council will hear from two downtown business owners who have spent nearly nine months doing the legwork to potentially form the BIA: Shannon Roche, the owner of Divine and Free Wellness Spa located on St. Michael Street, and Michelle McDonald, the co-owner of Tryst Wine and Small Plates located on Perron Street.
“Obviously downtown's been on the docket for a long time,” Roche said on Monday. “There's a lot of things that have been tried and fallen flat, and the businesses really wanted an opportunity to have an idea that we all felt would actually improve the downtown area.”
“(A BIA) gives us an opportunity to look right outside our front door ... and have a little bit of more of a say on what is going to directly affect us, and how we want to see things done, or built, or festivals, and just those opportunities to invest in our business community and to improve.”
Prior to having council vote on the formation of a downtown BIA, Roche and McDonald collected the signatures and support of 35 downtown business owners, which represents 29 per cent of all downtown businesses and four per cent more than the level of provincially required support.
Roche said neither she or McDonald had heard from any downtown businesses that directly oppose the idea of having a BIA; however, there was some hesitation because of the financial commitment that comes with forming a BIA.
Erickson's report says a proposed annual budget for the BIA would be $25,000 to start, and each downtown business would be taxed $199.00 to fund the BIA's efforts.
The Gazette will have coverage of council's decision in the Thursday, Sept. 21 edition of the newspaper.
Borrowing bylaw
After first reading passed unanimously earlier this summer, city council will complete second and third reading of a $20.5 million borrowing bylaw for the third phase of construction on St. Albert Trail.
Phase 3 covers the section of St. Albert Trail between the Everett Drive North intersection and the Neil Ross Road intersection.
The debt, which would be paid back over a 20-year term, would push the city's overall long-term debt to nearly $130 million, which is slightly more than half of the city's policy-determined debt limit, and about 43 per cent of the city's roughly $300 million debt limit as dictated under the MGA.
The city has already taken on $26 million in long-term debt for the first two phases of work, which involves realigning all of the northbound lanes and more. However, the new debenture will be the first to have a direct impact on property taxes, as just 65 per cent of the overall cost will be recoverable through off-site levies, while the remaining 35 per cent is the city's direct responsibility.
Off-site levies are a method of funding infrastructure development when a municipality can't pay the full cost.
Locally, the off-site levy program involves a development company such as Landrex, or the city itself, front-ending construction costs with a guarantee other developers who benefit from the infrastructure development will pay city-determined levies in the future.
The Gazette will have coverage of council's decision in the Thursday, Sept. 21 edition of the newspaper.
