St. Albert city council has approved an updated plan to accelerate Lakeview Business District development, funding it with money from the city's stabilization reserve and annual funds from new assessment growth.
Councillors first heard details of the Lakeview Development Acceleration Program (DAP) during the Standing Committee of the Whole meeting on April 8. The program would be funded with $1.6 million from the stabilization reserve in 2025, as well as $800,000 a year from new assessment growth all into the city's Growth Stabilization fund, until a balance of $8 million is reached. Rebates through the program will be available for 10 years.
The funding maximum doesn't guarantee the city would use the full $8 million, only that $8 million would be available to be granted, according to a report on the program framework.
The original proposal of $1.27 million was changed after an amendment proposed by Coun. Sheena Hughes to update the funding to $800,000 annually from new assessment growth and a one-time payment this year of $1.6 million from the stabilization reserve was passed unanimously. Administration said there is approximately $12.1 million in the stabilization reserve, making the payment possible.
The city's year end annual report revealed new assessment growth increased in 2024 to 2.99 per cent, up from 2.24 per cent in 2023. Hughes said the extra assessment growth made her think of a way to apply it to offset taxes for residents while also funding the DAP to be successful.
Coun. Shelley Biermanski, who was opposed to the program during the April 8 standing committee of the whole meeting, thanked Hughes for "getting creative," something she told the Gazette last week she had hoped the original plan would have been able to do.
In the first scenario of $1.27 million funded annually, the DAP would receive approximately $3.9 million by year three of the funding. With Hughes's alternative, the DAP would be approximately $4 million.
Also with the updated plan, residents' taxes are offset to a slightly lower rate, down to 2.9 per cent from the original increase of 3.6 per cent announced in December 2024.
"This is a way I think that we can actually achieve both goals which is to offer a tax decrease and also to have the necessary funding and have the same or better funding that would be necessary even if there is a high uptake out of the gate," Hughes said.
Biermanski called it a "middle ground" she was willing to support.
"This is helping the citizens when they need it most. The education [property] taxes went up. and for us to stave off any of the balance of the tax increases ... makes me happier than anything," Biermanski said.
St. Albert Mayor Cathy Heron recalled the 2025 Business Breakfast, where a panellist said that St. Albert can't get complacent in tackling growth.
"This is us being bold and aggressive on Lakeview and making sure that development happens faster so our residents can benefit from that. Whether it's from a shift in the tax ratio or just good jobs for our residents," Heron said.
