Red Deer Minute: Issue 240

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

📅 This Week In Red Deer: 📅

• The Canada Mortgage and Housing Corporation (CMHC) has ended its Housing Accelerator Fund (HAF) agreement with the City of Red Deer after finding the City non-compliant with program requirements, specifically failing to adopt zoning rules allowing four units on a single residential property. Red Deer City Council had unanimously opposed the zoning changes in July 2025, citing community concerns, and has instead pursued other housing initiatives. Only $3.2 million of the $12 million in funding had been allocated before the agreement was terminated. The City is refusing to return the grant money until discussions occur with the federal government. Mayor Cindy Jefferies emphasized that the City can meet housing targets without the blanket zoning change and is seeking flexibility in the conditions. City staff warned withholding funds could jeopardize other federal grants, but Council voted 7-2 to hold the money pending negotiations. Red Deer has already implemented alternative measures, including allowing house suites, backyard suites, and duplexes under certain conditions, to support housing development in the community.
  
  
• A planned overnight warming space in downtown Red Deer is still unable to open due to zoning and development permit issues. Shining Mountains Living Community Services received $96,150 in funding to operate the space with support from Turning Point Society, and secured a suitable location in a former Safe Harbour facility. However, an outdated zoning map - an Administrative oversight - has prevented the development permit from being processed, delaying Council approval. The City plans to amend the map and bring the permit forward for first reading on January 27th, aiming to resolve the issue. Executive Director Raye St. Denys expressed frustration, highlighting the risks of frostbite and cold-related injuries for people experiencing homelessness. 
  
  
• Red Deer Homeless Foundation has announced Project Nexus, a proposed integrated campus aimed at addressing homelessness by bringing shelter, health care, recovery services, and housing supports into one location. City Council will consider a rezoning application on February 3rd to change the property at 7740 40 Avenue from industrial use to a direct control district, which would allow future shelter use. The Foundation says the campus model is designed to reduce barriers created by fragmented services, long wait times, transportation challenges, and coordination gaps that often delay access to housing. Project Nexus would repurpose an existing 200,000-square-foot facility, avoiding new construction costs while requiring renovations to meet residential and trauma-informed standards. The project would be owned and operated by the Foundation, with philanthropic support helping secure the site, and Council approval could lead to a public hearing later in February. 
  
  
• Overcrowding in Edmonton hospitals is affecting central Alberta, leaving Red Deer physicians unable to transfer patients who need ward beds or specialized care. The Alberta Medical Association says about 35 patients were stuck in Red Deer’s emergency department beds on January 13th, waiting for surgery or treatment because Edmonton sites were too full to accept them. Doctors warn this “boarding” can last days, delaying specialty consultations and making it harder to safely treat new patients in the waiting room. Acute Care Alberta says it is coordinating a provincewide response by accelerating discharges and transfers, limiting non-essential inbound transfers, and opening surge spaces while noting only seven non-urgent surgeries have been rescheduled since January 1st. 
  
  
• Red Deer County is boosting its support for Tourism Red Deer, approving an additional $33,300 over three years. County Council unanimously agreed to increase annual funding by $11,100, bringing the County’s total contribution to $136,100 per year. Of that amount, $86,100 will support operations, while $50,000 will be reserved to strategically attract major and regional events. Tourism Red Deer says the investment will strengthen the region’s competitiveness as an event destination, building on recent wins such as securing the 2027 IIHF World Junior Championship (co-hosted with Edmonton). County Mayor Brent Ramsay praised the move, and County Councillor Dana Depalme was also supportive of the increase but hopes to see reduced reliance on taxpayer funding in the future. Tourism Red Deer says that remains a priority, noting municipal funding has already declined from 60% to 42% of its overall budget, with potential future growth tied to agri-tourism partnerships.

🚨 This Week’s Action Item: 🚨

CMHC has ended Red Deer’s Housing Accelerator Fund agreement over zoning non-compliance, but the City is holding the $3.2 million already allocated, arguing it can still meet housing targets through other initiatives.

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