With an unknown large retailer interested in coming to Lacombe, City Council is looking to ensure the success of Lacombe Market Square by borrowing $750,000 to bridge the gap between the current and future developers.
“It will facilitate the sale of the land to a developer who can then bring in the type of development we have been looking for for a long time in this community,” Counsellor Reuben Konnik said.
“It is not a loan. We will recoup that money over time through commercial property taxes and so forth.”
The bylaw was given first reading on Aug. 13th.
According to Konnik, this type of investment is not typical of a municipality but the jobs and revenue streams created by a developed Lacombe Market Square are important to the growth of Lacombe.
“I think it is a really big step for the growth of our community and something people have been calling for all of my eight years on Council,” he said.
“It has always been, ‘We need more commercial investment, we need more businesses, we need more shopping, we need to increase commercial taxes’.
“This is a big step towards that and I am really excited about it because I think it will be a huge step forward for our community.”
Konnik could not specify which retailer is interested in the development at this time, but he doesn’t expect that the retailer would have a negative effect on current business in the community.
“I think there will be some impact on some small businesses initially but I maintain that in the long-term, I think you will see a lot more people coming to Lacombe than who would have,” he said.
“How many people in Blackfalds go to Red Deer for all their shopping? I would say the the vast majority.
“If this type of retailer, this type of development occurs in Lacombe, a lot of that will come up the road and do other shopping in Lacombe. It is a huge plus to this community to see this type of investment and growth.”
The development of Lacombe Market Square will lead to a 0.5 per cent tax increase, but this will only be temporary according to Konnik.
“Once those commercial taxes are coming in — it won’t be needed anymore because that will offset that 0.5 per cent,” he said.
Konnik said the original developer of the land was forced to sell the development at a higher price due to the high initial investments made into the development.
“That land was a swamp and a lot of money has went into that land. It has changed hands a few times between developers. In order to recoup any amount, they have to sell at that point and we are bridging the gap to make it all come together,” he said.
Konnik said the City isn’t necessarily pleased to make this investment but he said it is needed.
“We don’t want to do this but at the end of the day, to not get involved would be a huge mistake. It is a huge day for this community going forward,” he said.