Business Improvement Area Disestablishment

City Council has given first reading to a bylaw that would disestablish the downtown Business Improvement Area (BIA). Under provincial legislation, downtown levy payers must be given a formal opportunity to vote before Council can make a final decision.

A vote of eligible levy payers is anticipated in mid-March. Details will be confirmed and communicated in the coming weeks.

Update - January 14, 2026

  • On January 13, City Council rescinded the 2026 DBA budget previously approved in November, approved a revised budget which reflects Council’s direction to align financial planning with the potential disestablishment of the BIA, and gave first reading to a bylaw to disestablish the downtown Business Improvement Area.
  • The revised budget prioritizes the continuation of essential downtown services while reducing new levy requirements and relies on the DBA society’s existing reserve funds to support an orderly wind-down of operations should disestablishment proceed.
  • First reading does not make a final decision. It initiates a provincially legislated process.
  • The Downtown Business Association’s announcement does not override this legislative process.
  • The City will maintain oversight to ensure continuity of services during the process.

More information

What happens next?

BIA taxpayer vote

  • Provincial legislation requires a vote of eligible BIA levy payers.
  • The vote is anticipated to take place in mid-March.
  • Voting details, eligibility requirements and instructions will be shared once finalized.

What the vote means

  • If the vote supports disestablishment, Council must pass the bylaw within the timeframe set out in legislation.
  • If the vote does not support disestablishment, Council cannot proceed with the bylaw and cannot bring forward a similar bylaw for two years.
What this means for BIA taxpayers
  • The vote gives levy payers a direct and legally binding say in whether the BIA is disestablished.
  • Each BIA tax roll is eligible for one vote.
  • Regardless of the outcome, The City is committed to maintaining essential downtown services and engaging businesses on future governance options.
Services and continuity during the process

The City is committed to service continuity, stability and transparency. Downtown programming, marketing and business support services are expected to continue without interruption. We are working closely with the DBA Board to ensure legislative compliance, continuity of operations, and clear communication with the businesses we serve. 

Service-related issues are not anticipated, but concerns should continue to be directed to the DBA through January 30, 2026. Questions about the disestablishment process can be directed to The City of Red Deer at 403-342-8111 or info@reddeer.ca.

Background information

DBA request to initiate BIA disestablishment - December 11, 2025 
On December 11, 2025, the DBA submitted a formal request to Red Deer City Council via The City of Red Deer to initiate disestablishment of the Business Improvement Area (BIA). DBA Request to Initiate Disestablishment Proceedings (pdf)

Letter to downtown businesses - December 10, 2025
A letter sent to downtown businesses on December 10, 2025 provided a formal update outlining the DBA’s announcement and the legislated process required for any official dissolution. Download the letter to downtown businesses (pdf)

What is the purpose of the DBA?

The Downtown Business Association (DBA) delivers services funded through a business tax, or levy, paid by businesses located within the BIA. 

What is the BIA levy? 

The levy is a business tax - a collective contribution made by every business within the Business Improvement Area (BIA). It ensures that the downtown core is consistently supported through advocacy, safety initiatives, beautification, marketing, and events. About 65% of the DBA’s budget comes from the levy, with the remaining 35% raised through grants and contracts. 

The levy is governed by the DBA Board of Directors, who approve the budget before it is presented to City Council. The levy is collected by The City of Red Deer based on each property’s net annual rental value assessment (NARV). 

Related resources

Learn more about downtown Red Deer by clicking the links below.

Frequently Asked Questions (FAQ)

Who can participate in the vote? 
Each BIA tax roll is eligible for one vote. More information on the voting process will be added to this page in the coming weeks.

Is there a minimum requirement for participation in the vote? 
No. Provincial legislation does not require a minimum level of participation or turnout for the vote to be valid. Instead, the process focuses on giving affected taxpayers the opportunity to approve or object to the proposed disestablishment within the legislated timeframe. 

The City will clearly communicate who is eligible to vote, how the vote will be conducted, and the applicable timelines. 

Are the results of the vote legally binding? 
Yes. The result of the taxpayer's vote is legally binding under provincial legislation.

  • If a majority of eligible voters support disestablishment, City Council is required to pass the disestablishment bylaw within 30 days.
  • If a majority of eligible voters oppose disestablishment, first reading is rescinded, Council cannot proceed with the bylaw and is prohibited from bringing forward another bylaw to disestablish the BIA for at least two years. 

How will The City ensure a consistent downtown experience during the transition? 
The City’s priority is to ensure continuity and stability downtown. We are working closely with the DBA Board and planning ahead to prevent service gaps and maintain a safe, welcoming downtown experience. 

Will services be disrupted? 
While the DBA will not have staff or an operating budget, The City is maintaining oversight to ensure continuity of essential downtown services during this transition period. The revised budget was developed specifically to avoid sudden disruption to services that support downtown cleanliness, safety and activation. 

Longer-term decisions about service delivery will be informed by the outcome of the levy payer vote and subsequent City Council decisions. The City’s intent is to provide stability for downtown businesses while respecting the legislated process and the direction provided by affected taxpayers. 

Will Downtown Red Deer gift cards continue to function? 
Yes, the cards will continue to function and there is no expiry date. Downtown Red Deer Gift Card is issued by Peoples Trust Company. Card funds are not insured by the Canada Deposit Insurance Corporation (CDIC). Funds do not expire, cards are non-reloadable and provide no cash access. Inquiries regarding the Downtown Red Deer Gift Card may be directed to supportna@mi-cnx.com.

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The City will continue providing updates about the downtown BIA disestablishment process. Sign up below to receive email updates.

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City of Red Deer Privacy Statement
The personal information collected through this form is for the purpose of communicating information to the disestablishment of the Downtown Business Association. This collection is authorized by section 4(c) of the Protection of Privacy Act and section 3 of the Municipal Government Act. For questions about the collection of personal information, contact communications@reddeer.ca.

If you have immediate questions, please contact:

Safe & Healthy Communities
403-342-8111