Local Business
Downtown Red Deer needs a more conservative strategy and business plan.
Red Deer’s Downtown Business Association levy is increasing and the question is why?
Business is down, unemployment is up, bankruptcies are up, store closures are up, and the city’s population decreased by 900 or about1%.
The city taxpayers are spending and have spent hundreds of millions of dollars on the downtown. 135 million relocating the public works yard, tens of millions on roads and services, tens of millions on the arena now after the millions spent on the curling club and the bus station.
So after all this money spent, people are moving out of Red Deer, business is down, taxes are up and the DBA or Downtown Business Association wants more money.
The DBA is also discussing increasing its’ boundaries, making the downtown in Red Deer larger than many towns.
The Red Deer Taxpayers’ Association is perplexed, wondering if perhaps that they never got the memo about the global downturn, and if perhaps they should consider downsizing, or at least finding some efficiencies. I may be adding to and paraphrasing their concerns.
I would have asked certain accountants about the pros and cons of an increased levy and their effect on corporate decision making and returns on investment, but they moved their practice to gasoline alley on highway 2. That I dare say answers that question.
When it comes to the downtown, the desire is for a larger courthouse, a larger city hall, a concert hall, a new aquatic centre, and more business. History tells us that we may as well wish for an orange grove in city park, because fantasy and reality are never the same.
Years of trying, hundreds of millions spent, thousands of decisions biased in favor of downtown and though the downtown is prettier, businesses are still leaving and residents seldom visit. What can we do?
We could rethink our plan for downtown or we could move downtown to gasoline alley and have Hwy 2 as our Main Street. Yeah, but, Pedestrian traffic might be a problem, but I am sure a few hundred million more dollars could fix that. Usual fix.
We could simply decide that the current economic environment dictates a more conservative strategy and business model for the downtown, til further notice. No increased levies. End of story. Thank you.
The Downtown Business Association (DBA) Board of Directors has made the decision to wind down the Association’s operations at the end of 2025.
The Board determined that the Association is no longer able to operate sustainably under the financial framework available for 2026. After exploring all reasonable alternatives, the Board concluded that it could not continue without reducing services to a level that would no longer provide meaningful value to levy-paying businesses.
The DBA does not receive any operating funding from City Hall in a regular year, all funds raised are through Business Improvement Area Levy that consists of a mandatory levy placed on all businesses operating within the Business Improvement Area. These funds are legislated under the Municipal
Government Act, to be used to promote the Business Improvement Area, which is achieved through marketing and event initiatives along with providing advocacy support primarily to local government on behalf of the business community.
In recent years, the DBA has been a committed advocate for re-examining the approach to Downtown Governance. The Board has consistently maintained that the responsibility for funding downtown initiatives in such a socially charged environment should not rest solely with the business community.
Despite their efforts, the DBA recognized that the funds generated through the Business Improvement Area Levy were insufficient to effectively address the growing challenges of the current operating environment. This ongoing financial strain highlighted the need for a more equitable and sustainable
model to re-establish the downtown as a safe and welcoming heart of the city.
At the annual DBA budget presentation to City Hall, the DBA requested the essential funding needed to implement the Greater Downtown Governance Committee’s recommendations — work that the DBA is uniquely positioned to lead and has been delivering despite depleting resources for many years. The request was not approved. Instead, The City offered a one-time $100,000 Grant-in-Lieu, paired with a proposed 60% increase to the Business Improvement Area levy in 2026.
After careful analysis, the Board concluded that increasing the levy would place undue strain on already challenged businesses and compromise the DBA’s role as a trusted advocate. Operating with the reduced funding of $225,000 would require further staff reductions in an already under resourced environment and a significant reduction in programs, making it impossible to deliver the level of support that downtown businesses deserve and vitally need.
Beginning January 1, 2026, the City of Red Deer will become the primary contact point for matters previously supported by the DBA, including downtown support programs, business-district coordination, events, safety and cleanliness support, and stakeholder engagement. The DBA will work with City staff to support a smooth transition.
The DBA will continue to provide Clean Team services through the delivery of the City-funded environmental contract until February 1st, 2026.
Quote from CEO, Amanda Gould:
“To our business community, we have always operated with your best interests in our heart, continually driving the vision of a thriving downtown environment that serves every member of our community. The changes ahead will have a significant impact on downtown, as there will no longer be an organization dedicated to ensuring the downtown remains top-of-mind, leading events, marketing initiatives, or advocating on your behalf. It is likely you will experience less coordinated support and collective representation.
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”.
Quote from DBA Board Chair, Brandon Bouchard:
“The incredible staff at the Downtown Business Association have consistently delivered on their mandate with outstanding dedication and effectiveness. 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.
Despite the staff’s relentless commitment to positioning the DBA as an effective leader for downtown interests, the absence of a sustainable funding model has made it impossible to continue delivering meaningful support. The Board cannot, in good conscience, propose a levy that does not enable the
Association to meet the required level of service, address the shifting priorities of the business community, or respond to the continually evolving needs of the downtown”.
From Community Futures Central Alberta
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