As grocery prices continue to climb, Edmonton’s city council has taken a significant step to enhance competition in the local market. A motion passed on Tuesday aims to eliminate restrictive covenants that have long hindered the establishment of new grocery stores in various neighbourhoods across the city. These legally binding agreements, often imposed by existing grocery chains, have created barriers for new businesses and contributed to the phenomenon of food deserts in certain areas.
Addressing Food Deserts
Mayor Andrew Knack underscored the urgency of this issue, 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 restrictive covenants often remain in effect even after a grocery store vacates a location, restricting the ability of other retailers to open in those spaces.
Councillor Ashley Salvador echoed the mayor’s sentiments, highlighting that many residents in Edmonton lack access to fresh and healthy food options. “It leaves a lot of communities without access to fresh, healthy food and really creates food deserts,” she remarked. The impact is particularly pronounced in older neighbourhoods where residents may depend on walking or public transport to meet their daily needs.
The Impact of Restrictive Covenants
One notable example is the Lansdowne Centre strip mall in south Edmonton, where a grocery store once operated. After its closure, the space remained empty for years until it was taken over by a thrift store. Area councillor Michael Janz pointed out, “Find has a lease there. Find is operating a furniture store. I don’t think Find is gonna pack up overnight and move.” However, with new residential developments and the upcoming Stollery Children’s Hospital, there is potential for renewed interest in converting the space back into a grocery store.
Janz believes that the council’s motion represents a small yet impactful change. “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,” he stated. The council is advocating for the provincial government to take action, as only they hold the authority to amend the property rules regarding restrictive covenants.
A Call for Provincial Action
During the council meeting, Mayor Knack highlighted that discussions around this topic have surfaced periodically, but momentum has recently increased. This revival follows Manitoba’s successful passage of a bill that eliminated 23 grocery property controls, thereby fostering competition within its grocery sector. Knack noted, “I think there is an opportunity to say that this really isn’t helping the vast majority of Albertans. So this isn’t an Edmonton-only thing; this is an Alberta-wide thing.”
Councillor Janz mentioned that city representatives have engaged with major grocery chains, indicating an industry willingness to adapt. “They were interested in making changes here, but they want to do so in a way knowing that everybody else will as well,” he explained. This openness suggests that the grocery sector is prepared to embrace changes if regulatory adjustments are made.
Provincial Government’s Stance
Red Tape Reduction Minister Dale Nally remarked that the province has been monitoring developments in Manitoba and assessing their applicability to Alberta. He indicated that the need for a motion from the city council may not be necessary, as the provincial government is already considering how to approach this issue.
Restrictive covenants in Edmonton have historical roots dating back over a century. For instance, in the prestigious Glenora neighbourhood, established in the 1910s, such covenants were originally designed to maintain the area’s exclusivity by restricting land use to single-family homes. This historical context highlights the long-standing nature of these regulations and the challenge of reforming them in modern times.
Why it Matters
The decision by Edmonton’s city council to advocate for the removal of restrictive covenants could mark a pivotal moment for the city, potentially transforming the grocery landscape and enhancing access to affordable food options for residents. In an era marked by rising living costs and inflation, this initiative not only addresses immediate concerns regarding food accessibility but also sets a precedent for other regions grappling with similar challenges. By advocating for change at the provincial level, Edmonton aims to pave the way for a more competitive and equitable grocery market, ultimately benefiting consumers across Alberta.
