After many months of chasing the story, the Gazette broke the good news yesterday – Costco Wholesale is coming to St. Albert, that is, provided the city and Landrex can reach an agreement on the lawsuit that has the developer wanting the city to repay levies it collected on earlier residential developments.
To a skeptic, the thought might fester that the Costco announcement is a bargaining chip designed to pressure the city into giving Landrex what it wants.
One certainly hopes that is not the case. The city is already at a standstill on how to move forward with a revised policy on capital recreation levies after the Alberta Court of Appeal ruled that Okotoks could not charge such a levy for a bridge project. Municipalities are allowed to charge off-site levies for roads and sewer, as well as land required for infrastructure.
Depending on the outcome of the Landrex situation – and both sides say they are moving towards a mutually agreeable settlement – St. Albert might find itself not only repaying levies but also not collecting about $7.7 million in levies from another Landrex residential development in Erin Ridge North.
There are big dollars involved – now and in the future – in resolving that issue so the city has to tread cautiously.
Bringing Costco to anchor a major retail development at the north end of the city – and Landrex CEO Larry Andrews is talking about a 50-acre shopping centre – could reap major benefits for the city. Costco is a huge customer draw. At the moment St. Albert shoppers flock to Costco outlets in Edmonton. If Costco builds here those customers can stay home.
And Costco would draw hundreds of shoppers from throughout Sturgeon County and rural areas to the north. There’s a good chance many of those shoppers would spend time and money in other St. Albert retail outlets.
Some might see Costco as a challenge to Walmart, located almost directly across St. Albert Trail from the proposed Costco site. In many ways the two super retailers complement each other and, if nothing else, there could be some incredible sales being offered in areas where the two do compete.
If Costco is built – and it does still remain an if – that commercial development would nicely offset Melcor’s huge residential development planned for the lands immediately behind Walmart.
Both major developments are a long way from reality and there are still a lot of negotiations to take place between the developers and the city on servicing of the lands and how they fit into the city’s long-term plans.
It’s interesting – and probably just coincidence – that the Costco announcement comes on the heels of Monday’s presentation by acting chief financial officer Ed Kaemingh that the city would reduce its dependency on residential taxes with a change in philosophy.
Interpreted, the acting CFO is saying it’s time council stopped relying on outdated taxation policies and got serious – if indeed it actually is – about trying to relieve some of the heavy tax burden on homeowners by actively pursuing non-residential developments … such as Costco.
This could be the initial shot being fired towards a more equitable taxation arrangement for homeowners.
