As grocery bills continue to soar, Edmonton’s city council has taken a significant step to enhance competition in the food retail sector. On Tuesday, council members approved a motion aimed at dismantling restrictive covenants that have long hindered the establishment of new grocery stores throughout the city. These legal agreements, which limit property usage even after ownership changes, have historically been employed by grocery chains to prevent rival businesses from setting up nearby, contributing to the proliferation of so-called “food deserts” in various communities.
Understanding Restrictive Covenants
Restrictive covenants are agreements tied to property titles that impose limitations on how land can be used or developed. For decades, these covenants have been used by grocery stores in Edmonton to stifle competition, resulting in many areas being deprived of local grocery options.
Mayor Andrew Knack stressed the urgency of the situation, stating, “Food deserts are a real thing. There are communities that have not had the opportunity to have a local grocery store, in some cases, for decades because of the way the rules and these covenants have been designed.”
The implications of these restrictions are particularly significant in older neighbourhoods, where residents—often without access to a vehicle—struggle to reach grocery stores that may be located far from their homes. Councillor Ashley Salvador highlighted this issue, saying, “It leaves a lot of communities without access to fresh, healthy food and really creates food deserts.”
The Case for Change
One notable example can be found in south Edmonton, where a grocery store previously located in the Lansdowne Centre strip mall has remained vacant for years. The space, now occupied by a thrift store, cannot be repurposed for a new grocery outlet due to enduring restrictive covenants. Councillor Michael Janz pointed out that as density in the area increases and new developments, such as the Stollery Children’s Hospital, are on the horizon, the need for a grocery store will likely become even more pressing.
Janz has proposed a motion for the mayor to advocate to the provincial government for the removal of these restrictive agreements, emphasising the necessity for legislative support in enabling grocery store competition. He explained, “This is one of those small changes that can have an outsized impact, but it may take a little bit of time to be realised.”
Provincial Support and Industry Response
The city lacks the authority to alter property regulations related to restrictive covenants, making provincial advocacy crucial. Discussions on this topic have recently gained momentum, particularly following Manitoba’s successful legislative move to eliminate 23 grocery property controls, thus fostering increased competition in its retail sector. Mayor Knack noted that this is not merely an Edmonton-centric issue but one that resonates throughout Alberta.
In light of these developments, Janz revealed that city representatives have met with major grocery chains, who are reportedly open to changes provided that a collective agreement is reached among all stakeholders. “They were interested in making changes here,” he said, “but they want to do so in a way knowing that everybody else will as well.”
The Historical Context of Covenants in Edmonton
The legacy of restrictive covenants in Edmonton dates back over a century, affecting not just commercial properties but residential areas as well. For instance, the prestigious Glenora neighbourhood, established in the 1910s with the Carruthers Caveat, exemplifies how these agreements have been used to maintain specific community characteristics. This caveat stipulated that only single-family homes and spacious lots could be built, preserving the area’s elite status.
Red Tape Reduction Minister Dale Nally stated that while a city council motion may not have been strictly necessary, the province has been observing Manitoba’s reforms to assess their applicability in Alberta.
Why it Matters
The removal of restrictive covenants could be a game-changer for Edmonton’s grocery landscape, potentially alleviating the burden of rising food costs for residents. With many communities currently lacking easy access to fresh food, this initiative could pave the way for new grocery stores to emerge in underserved areas, thereby enhancing food security and affordability. As the conversation around grocery competition continues to evolve, the council’s proactive approach may serve as a model for other cities grappling with similar challenges. The outcome will not only shape the local economy but also significantly impact the daily lives of countless Edmontonians who rely on accessible grocery options.
