Landrex has compromised on the residential to commercial property ratio it had proposed for its development north of Costco.
Landrex has compromised on the residential to commercial property ratio it had proposed for its development north of Costco.
The developer presented city council with a new plan on Monday that called for a smaller reduction to the commercial component of the development. Landrex still needs approval from the capital region board and a final vote from city council before it can start building.
But as one councillor put it, the developer has now presented the city with a plan that “everyone can hopefully somewhat live with.”
“It's somewhat more palatable,” said Coun. Tim Osborne.
In early June, Landrex first asked to reduce its 25 hectares of designated commercial land in its Erin Ridge North Phase 2 project to 11.4 hectares. The land, located north of Costco and Neil Ross Road, was originally proposed as a commercial corridor along St. Albert Trail. The developer, however, hopes to use some of it for multi-family housing.
Council, in a move led by the mayor, decided it wanted to see options to preserve more of the commercial land. Landrex was asked to work with administration and returned to council on Monday with an offer to reduce the commercial site to a little more than 20 hectares.
It stressed, however, that it still preferred to build more housing. There are several other, large commercial developments in the area and Landrex wants to cater to local demand with smaller, neighbourhood stores, said Jim Sheasgreen, vice-president of operations. The need for a larger commercial site “may be inaccurate at this time,” he said.
Laurie Scott, vice president for Cameron Development, and David Ghermezian, chief executive officer of Triple Five Group, also spoke in favour of more residential development on the Landrex site.
Cameron's 300,000 square feet of development south of Costco is speculated to look similar to South Edmonton Common one day. Triple Five owns about 100 acres on the west side of Highway 2 north of St. Albert. The company is a major shopping mall owner and operator, with holdings such as West Edmonton Mall.
Both said the retail world has changed dramatically in recent years. This is a global change, said Scott. The oil industry may affect Alberta's economy but the effects of online shopping are felt worldwide, forcing many retailers to close or build smaller spaces, he said.
Both said more residential development on the Landrex site would bring growth and demand for stores to the entire area.
But Ken Crutchfield, a resident, disagreed. He said there is a need for more commercial space in the city. A developer should not be able to tell the city what to do, he said.
“We are talking about zoning land under the municipal development plan so it sets the stage for how the area ought to be developed in the longer term,” he said. “I've seen the boondoggles we get into when we start going for the short-term gains and disregard the long-term consequences.”
All councillors were in favour of more commercial development, though some were more susceptible to the new proposal than others.
Mayor Nolan Crouse questioned why Landrex proposed to build more homes when the city's retail market analysis shows a need for more stores. For example, there is lack of merchandise, clothing and car businesses, he said. He remained in favour of retaining the corridor as it was planned.
Sheasgreen said there are many opportunities for retail in St. Albert. But Landrex' own retail study suggested not building larger stores when there is already similar development planned south of its site.
Councillors were also concerned that waiting for approval on the new plan by the capital region board would halt development. Landrex said a hotelier wants to start building on the site and is getting impatient, as is the developer for the multi-housing development.
Councillors Cathy Heron and Sheena Hughes said they would rather approve the proposal, which would allow for more residential development. Delaying the development could mean they “potentially lost two deals,” said Hughes.
“I am thinking that vacant land has little tax revenue,” said Heron.
Councillors Wes Brodhead and Cam MacKay supported the new proposal. MacKay called it a “realistic plan,” while Brodhead agreed with the developers that the retail market has changed.
Coun. Bob Russell said he has always been opposed to reducing commercial zoning for residential but in this case he agrees with Brodhead "that times have changed."
“I think this is a good compromise,” he said.
Landrex's new proposal will now be sent to the Capital Region Board for approval. The public hearing remains open and was adjourned until Oct. 5, 2015, when council meets again to discuss plans for the site.
Correction: An earlier version of this story incorrectly said that Coun. Bob Russell said he "always favours residential over commercial development." It should have read that he has always been opposed to reducing commercial zoning for residential. The Gazette apologizes for any confusion this may have caused.
