Lacombe City Council has decided to issue a bylaw pursuant to Section 256 of the Municipal Government Act in order to attract a major Canadian retailer and associated development to Lacombe.
The municipality will purchase 4951 Wolf Creek Drive, Lacombe Alberta for $3,325,000 and immediately sell it for $2,575,000 to a private developer at below market value. Agreements have been prepared between parties and the total cost to the municipality is $750,000.
In order to complete the development it will be necessary for the municipality to borrow $750,000 from an authorized financial institution. The required approvals for the project will be obtained to ensure compliance with all Acts and Regulations of the Province of Alberta.
The City of Lacombe has also taken steps to ensure accountability by requiring its financial investment be returned if project construction does not start within three (3) years.
The municipality shall repay the debt, with the following terms:
$63,737 (Principle and Interest)
Impact on Operating Budget
0.45% tax increase in 2019
The amount borrowed under this bylaw will be applied only to the project specified by the proposed bylaw. The bylaw comes into force on the date it is passed by Council resolution.
Council isconsideringthis initiative in response to the number one concern expressed by citizens during recent public engagement processes – increased retail access. In light of the recent ranking of Lacombe as one of the best places to live in Canada – and the best in Alberta – Council believes this development may help address this pressing concern and help the community become even more livable
The anticipated increase in assessed value (improvement) is significant. It will help increase the city’s commercial tax base and reduce reliance on residential property tax revenues – as part of Council’s 2018-2021 Strategic Plan. The table below gives a potential range of the improvement value with the corresponding increase in annual tax revenue.
2018 Mill Rate (8.5503)
The principal amount of the City of Lacombe's outstanding debt as of December 31, 2017, is $16,176,619, with a total debt limit of $42,055,150.