Red Deer City Council considered the future of the Business Improvement Area (BIA) and the Downtown Business Association (DBA) at its regular meeting today.
As part of today’s meeting, City Council decided the following:
- Potential Disestablishment of the BIA
Council directed Administration to bring forward a bylaw to initiate the process of disestablishing the BIA no later than April 30, 2026.
- If this bylaw is approved, it would trigger a formal vote of businesses within the BIA to determine whether or not to proceed with disestablishment.
- Funding for 2026
Council also directed Administration to develop a grant in lieu funding option as part of the 2026 City budget to offset a potential 0 per cent BIA levy. This grant could replace the business tax levy that downtown businesses pay, so the DBA still has money to run programs and services.
The DBA will continue to operate in 2025. Any decision to formally disestablish the BIA will depend on the outcome of the vote by taxable businesses within the BIA boundaries, which will need to take place within 90 days of first reading of a bylaw.
"Today's direction from City Council will inform the future of the Business Improvement Area Levy in Red Deer, that funds a portion of the budget of the Red Deer Downtown Business Association. While Council has directed us to begin the process by returning with a bylaw in April 2026, the final decision rests with the businesses themselves through a formal vote. The direction is timely, with the recommendations of the Downtown Governance Committee being explored and returning to Council for decision by March 2026 on how to best support downtown businesses and maintain a vibrant, welcoming core for the whole community,” said Tara Lodewyk, City Manager.
These matters were referred to Council by the Committee of the Whole on July 24, 2025, after the committee received more details from administration about the disestablishment process and the implications of a 0 per cent BIA levy.
Background: A Business Improvement Area (BIA) is a designated zone within the city where local businesses pay a levy (a type of local tax) that goes directly toward improving and promoting their commercial district. These funds typically support things like beautification projects, events, marketing, and safety initiatives that benefit the area and attract more people to shop, dine, and do business there.