TAMRMS#: B06
5.2
Information Item Only
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St. Albert Downtown Business Association Year One Review
Presented by: Daniel St. Pierre, Manager, Business Retention & Expansion, Economic Development
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SUMMARY
In its first year, the St. Albert Downtown Business Association (SADBA) made significant progress in supporting downtown vibrancy through business development, marketing, public space enhancements, cultural programming, and event activation. While successes included strategic planning, stakeholder engagement, beautification efforts, and new initiatives, like an Entertainment District, challenges arose around administrative delays, payment processing, and volunteer capacity. To improve collaboration and efficiency, the City is establishing a quarterly Downtown Working Group, refining the payment process, and aligning SADBA’s budget cycle with Council’s. Economic Development will continue providing expanded support to help SADBA execute its ambitious plans. With these refinements, SADBA is well-positioned to enhance Downtown St. Albert’s economic and cultural appeal.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On April 16, 2024, Council passed the following motions:
BL-24-011
That Bylaw 12/2024, Business Improvement Area Tax and Tax Rate Bylaw, passed all 3 readings
On March 5, 2024, Council passed the following motions:
AR-24-099
That the appointments of the Directors to the St. Albert Downtown Business Association's Board, as set out in the attachment entitled "St. Albert DBA - 2024-2025 Board of Directors," be approved, each for a term from March 5, 2024 to December 31, 2025.
That the St. Albert Downtown Business Association's proposed 2024 budget, as set out in the attachment entitled, “St. Albert BIA - 2024 Proposed Budget,” be approved.
On September 19, 2023, Council passed the following motion:
BL-23-22
That Bylaw 21/2023 was given all 3 readings.
BACKGROUND AND DISCUSSION
Downtown St. Albert serves as the historical, cultural, and economic heart of the city. Recognizing the importance of a thriving downtown core, St. Albert City Council established the city’s first business improvement area (BIA) by approving Bylaw 21/2023, approved the 2024 Business Improvement Area Tax and Tax Rate Bylaw (12/2024), and on March 5, 2024, approved St. Albert Downtown Business Association’s budget. These steps provided the foundation for enhanced economic development, cultural programming, and public realm improvements. The creation of the St. Albert Downtown Business Association (SADBA) reflects the City’s commitment to strengthening the downtown district as a destination for residents, visitors, and businesses alike.
City Council has identified Downtown Vibrancy as a key strategic priority, emphasizing the need for a revitalized and dynamic downtown that supports local businesses, fosters community engagement, and enhances the city’s overall appeal. This priority aligns with the mandate of the DBA, which is focused on business support, destination marketing, cultural enrichment, and infrastructure enhancements that contribute to a vibrant, pedestrian-friendly, and economically sustainable downtown.
Since its establishment, the St. Albert Downtown Business Association has worked proactively to activate its mandate. In May of 2024, the SADBA presented a Strategic Plan that outlines key initiatives in the areas of business attraction, marketing, infrastructure improvements, cultural programming, and entertainment. The plan is ambitious and will require a multi-year approach in order to succeed.
The implementation of these initiatives, however, directly supports City Council’s strategic priority of Downtown Vibrancy by increasing business viability, enhancing public spaces, and fostering a greater sense of community in the downtown core. Through a collaborative approach with the City of St. Albert, local businesses, and key stakeholders, the SADBA is committed to transforming Downtown St. Albert into a must-visit destination that reflects the city’s heritage, economic aspirations, and commitment to sustainable urban development.
Year One in Review
2024 was the first year of operation for SADBA. It provided an opportunity for Administration to work with SADBA, assess in partnership the successes and challenges, and work together on solutions. Economic Development is not recommending any significant changes to the process in year two. Administration will implement the adjustments identified below in the Opportunities for Improvement section of this memo and assess again at the end of 2025. At that time, in consultation with other relevant departments and SADBA, recommendations for changes and enhancements may be presented.
Successes
- Administration worked in close collaboration with SADBA to support the development of their first budget and strategic plan. The 2024 budget was approved by St. Albert City Council in March 2024
- Administration worked to facilitate payments to SADBA in alignment with Council’s direction and motions
- SADBA incorporated, established bank accounts, launched a website and newsletter, and began to operate as a functioning entity, with regular stakeholder communication
- Economic Development team members attend SADBA board meetings, which facilitated the positive development of a strong working relationship with the board, as well as consistent communication about ongoing initiatives, programs, and impacts from activities at the City of St. Albert and SADBA
- SADBA deployed their resources to support beautification in Downtown and enhance seasonal lighting throughout Downtown, enhancing the overall aesthetic of the area
- SADBA deployed their resources to collaborate with Kinsmen Club of St. Albert to produce the 2024 Snowflake Festival
- SADBA, in collaboration with Economic Development, is actively developing proposals for new initiatives, like entertainment districts and patio programs, in an effort to create new opportunities for vibrancy
Challenges
- SADBA encountered some challenges as board members navigated the process of incorporation and setting up a bank account. This resulted in delays in the City of St. Albert’s first transfer of funds
- Both SADBA and the City of St. Albert experienced some initial misunderstandings related to City processes on the deployment of planters in Downtown, seasonal lighting, and cultural programming, leading to moments of confusion that were ultimately resolved
- The second payment to SADBA, derived from the collection of the BIA tax, was delayed due to administrative confusion about this process. However, it was resolved once identified
- As a volunteer-led organization, SADBA is managed by business owners who generously contribute their time. The scope of the time commitment required for some initiatives may not have been entirely clear from the outset, which has led to some challenges in capacity
- There was some slippage in the collection of the BIA tax among downtown businesses. The compliance rate was 65%, meaning that 35% of businesses did not pay the $200 tax, impacting the resources available for the SADBA to operate
Opportunities for Improvement
The Economic Development Department is establishing a quarterly Downtown Working Group with relevant City departments and SADBA Board representation. This group will streamline communication, improve transparency, and enhance collaboration, ensuring alignment on projects, regulatory processes, and Council’s downtown vibrancy goals.
To address payment delays, Administration has implemented a plan to ensure timely financial commitments to SADBA. Additionally, SADBA’s budget cycle will be realigned with City Council’s to enable advance approvals and integrate BIA notices with business and property tax notices for greater efficiency. Economic Development has also expanded its support for SADBA within its Business Retention and Expansion plan, dedicating additional resources to help execute key initiatives.
Finally, regarding the slippage in payment collections, there are several mechanisms to address this currently under review. In year two, additional communication about SADBA and the purpose of the tax will take place through SADBA. Direct outreach from SADBA will provide additional education on why the tax is being applied and what kind of programming will be delivered by SADBA. We will assess collection rates in year two, and if the slippage continues, we will make recommendations for year three related to more robust collections and enforcement measures. These could include adding late payment or non-payment penalties or referring outstanding notices to collections. Notably, other jurisdictions with similar BIA’s have reported comparable capture rates following their June tax deadlines. Ongoing communication with BIA members, along with the possibility of the issue proceeding to collections, have improved rates in those municipalities.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Administration is in regular communication with SADBA’s Board of Directors, participating in their monthly board meetings. In addition, there are regular ad hoc and informal discussions as needed. Going forward, Economic Development will lead a Downtown Working Group with relevant City of St. Albert departments and SADBA to facilitate continuous improvement of communication.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
This report and Economic Development’s ongoing work related to SADBA is directly aligned to City Council Strategic Priority Two: Downtown Vibrancy. Specifically, it supports Strategy Three: Facilitate and support the downtown business community to
leverage collaborative opportunities and promote businesses that help create a
vibrant downtown. This strategy includes supporting the creation of a Business Improvement Area.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
B.4.3 Stakeholder relations - Consultation, coordination, and collaboration with external business and economic development organizations.
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Report Date: April 8, 2025
Author(s): Daniel St. Pierre, Manager, Business Retention & Expansion
Department: Economic Development
Department Director: Michael Erickson
Managing Director: Adryan Slaght
Chief Administrative Officer: William Fletcher