Red Deer Minute: Issue 211

Red Deer Minute - Your weekly one-minute summary of Red Deer politics

📅 This Week In Red Deer: 📅

• City Council has voted to transition its electric utility to a Municipally Controlled Corporation by 2028. After years of studies, open houses, and debate, Council passed the resolution following a lengthy public hearing. Supporters, including Mayor Ken Johnston, say the new structure will keep the utility publicly owned while allowing more flexibility and arm’s-length operations. The shift will require a one-time cost of about $4.1 million and add $1.1 million in annual expenses. Some residents voiced concerns about accountability and profit-driven management, while others urged Council to focus on long-term sustainability. A new board of directors will be appointed by Council to oversee the MCC’s operations. The City will start detailed implementation planning over the coming months, but the current utility structure will remain in place until the transition is complete.
  
  
• The Red Deer District Chamber has raised concerns about Council’s decision to transition the electric utility to a Municipally Controlled Corporation. While the Chamber agrees modern governance and flexibility are important, it questions whether the MCC model will deliver enough financial return to justify its upfront and annual costs. Competing with larger, well-established utility providers could also challenge Red Deer’s scale and efficiency. The Chamber suggested that divesting or forming strategic partnerships might have offered stronger long-term gains. However, they were encouraged by Council’s assurances that future partnerships remain possible. As the City begins planning the MCC’s framework, the Chamber is urging Council to stay accountable, monitor results, and keep options open for residents and businesses. They say they will keep advocating for efficient services and a strong economic future while working with the City during this major transition.
  
  
• The future of Red Deer’s overdose prevention site (OPS) remains uncertain as a legal challenge over its permanent closure heads through the courts. The site, which operated out of a temporary trailer since 2018, officially closed on March 31st after Council voted last fall to replace it with new health and recovery programs. The recent Court of King’s Bench hearing was launched on behalf of one of the OPS’s 600 clients, questioning whether the Province’s decision aligns with health rights. Supporters say the closure will leave vulnerable residents without safe options, while Council maintains the shift focuses on long-term wellness. The site’s shutdown follows years of debate in the community about these types of services. The City says it will continue moving forward with alternative supports, but advocates warn that gaps remain for those struggling with addiction right now. A ruling on the legal challenge is expected later this year.
  
  
• Construction is underway on a 64-unit stacked townhouse project called Cityscape@Capstone in Red Deer, while a nearby 62-unit rental development, THE ALEX, is nearing completion with units priced between $900 and $2,000 per month. The City is also seeking proposals for more residential and mixed-use developments in Capstone, hoping to capitalize on a low vacancy rate of just 1.5%. Officials believe the tight rental market presents a strong opportunity for developers, and permit activity supports this, with residential building permit values increasing 231% compared to the same period last year. A significant $11.7 million permit for a 148-unit apartment in Clearview Ridge contributed to the surge. Capstone is also growing as a community hub, with events like Food Truck Fridays, a Pride Block Party, and concerts scheduled throughout July.
  
  
• Crews have started tearing down the Empire Building in downtown Red Deer, finally removing a long-standing eyesore. The property at 4909 48th Street has sat empty and charred since a fire destroyed the structure in October 2021. Once home to the Casa Pergola restaurant and other businesses, the building has remained fenced off and boarded up for nearly four years. Demolition will continue through Monday, with parts already being dismantled as of this week. City officials say clearing the burned-out site is an important step toward revitalizing the downtown area. Residents have repeatedly called for action, frustrated by the building’s lingering state of disrepair. Once the site is cleared, the City hopes it will open up new opportunities for redevelopment and bring renewed life to Red Deer’s core.

🚨 This Week’s Action Item: 🚨

We don’t usually ask for donations in these Minute emails, but summer is a challenging time for non-profits like ours, and your support makes all the difference.

If you value the work we’re doing, now’s a great time to chip in and help us stay on track: