FULL STATEMENT – Downtown Business Association Wind Down

Red Deer, Alberta — The Downtown Business Association (DBA) Board of Directors has made the decision to wind down the Association’s operations at the end of 2025.  

The Board determined that the Association is no longer able to operate sustainably under the financial framework available for 2026. After exploring all reasonable alternatives, the Board concluded that it could not continue without reducing services to a level that would no longer provide meaningful value to levy-paying businesses. 

Why This Decision Was Made

After exploring all reasonable alternatives, the Board determined that the Association is no longer able to operate sustainably under the financial framework available for the coming year. Continuing operations would require reducing services to a level that no longer provides meaningful value to levy-paying businesses—an outcome the Board could not support in good conscience.

The DBA receives no operational funding from City Hall in a regular year. Operations are funded entirely through the Business Improvement Area (BIA) Levy, a mandatory levy placed on businesses operating within the district. These dollars are legislated to be used for promoting the area, delivered primarily through:

• marketing and events
• business advocacy
• beautification and placemaking initiatives
• stakeholder engagement

These funds were never intended to address the full scope of downtown’s modern challenges: safety, social disorder, increasing cleanliness pressures, vacancy, and the need for stronger investment attraction. While the DBA has delivered exceptionally in the areas prescribed by its mandate, it is ultimately not legislated nor resourced to fully address the evolving needs of the Downtown. This ongoing financial strain highlighted the need for a more equitable and sustainable model to re-establish the downtown as a safe and welcoming heart of the city. 

In recent years, the Downtown Business Association (DBA) has been a committed advocate for re-examining the approach to Downtown Governance. The Board has consistently maintained that the responsibility for funding downtown initiatives in such a socially charged environment should not rest solely with the business community.

At the annual DBA budget presentation to City Hall, the DBA requested the essential funding needed to implement the Greater Downtown Governance Committee’s recommendations. These recommendations reflect the most pressing needs of the downtown today, including strengthening safety, improving cleanliness, attracting investment, enhancing the visitor experience, and coordinating efforts across multiple partners. The DBA is uniquely positioned to lead this implementation and, despite depleting resources for many years, has already been delivering work directly aligned with the recommendations.  

The request was not approved. Instead, the City offered a one-time $100,000 Grant-in-Lieu, paired with a proposed 60% increase to the Business Improvement Area (BIA) levy in 2026, despite previous council intention of a 0% levy in 2026 in recognition of operating environment and weight of the levy on struggling businesses.

After careful analysis, the Board concluded that increasing the levy would place undue strain on already challenged businesses and compromise the DBA’s role as a trusted advocate. Operating with the reduced funding of $225,000 would require further staff reductions in an already under resourced environment and a significant reduction in programs, making it impossible to deliver the level of support that downtown businesses deserve and vitally need. 

Structural Challenges That Made the Current Model Unsustainable

In May 2020, the DBA was advised by the Ministry of Municipal Affairs that, beginning in 2021, levy payments would no longer be collected from provincially operated buildings downtown. This change resulted in an approximate 40% reduction in the DBA’s operating budget, forcing significant program reductions and the loss of essential staff capacity.

In the years that followed, downtown’s needs continued to grow while the DBA’s funding model remained static. Despite this widening gap, the DBA worked to maintain services and consistently advocated for a renewed, more sustainable approach to downtown governance. Throughout this period, the Association emphasized:

• the escalating social, economic, and environmental pressures facing businesses;
• the limitations of relying solely on the BIA levy—particularly after the provincial withdrawal; and
• the need for a coordinated, well-resourced model capable of addressing the complexity of the current downtown landscape.

Despite providing a high level of service, the DBA recognized that levy revenue alone is not sufficient to sustain the level of support required to maintain a safe, vibrant, and economically competitive downtown and nor should it be. A vibrant downtown benefits every member of the community, and the levy alone should not be responsible for achieving this, it is an unfair burden on the business community operating in a challenging environment, compounded by a housing and opioid crisis that negatively impacts a downtown rhetoric. 

Context of Council’s 0% Levy Exploration

In 2025, City Council directed Administration to explore the possibility of a 0% levy for 2026. This signaled a shift in responsibility for downtown revitalization. The DBA planned accordingly and developed a strategic plan and budget reflecting this emerging direction and reflected the core pillars identified by the Downtown Governance Committee, which consistently reflected the ongoing direction of the DBA over the past 40 years.

However, the funding model proposed by Council during budget discussions was inconsistent with that signal. Rather than a pathway to operational stability, the City offered:

1. a one-time Grant-in-Lieu of $100,000
2. a 60% increase to the BIA levy proposed

The Board carefully considered both options and concluded:

• A significant levy increase would harm businesses and undermine trust.
• Operating on the reduced funding total of $225,000 would necessitate further staffing cuts and dramatic service reductions.

Both scenarios would compromise the DBA’s integrity and ability to deliver meaningful results.

Budget Clarification:

Communications in the media referenced a funding total of $650,000; however, only a portion of that amount supports DBA core operations. Approximately $301,500 is tied to separate service delivery contracts (environmental services – generally known as the DBA Clean Team providing litter and needle debris collection services plus a separate contribution to augment the DBA’s programming on Ross Street Patio) that cannot be used for operations and simply funds the delivery of these contracts.

The City’s actual proposed contribution to the DBA’s operating budget is $100,000, which, combined with the Board’s maintained levy of $125,000 (rather than the City’s proposed $200,000 levy), provides $225,000 in core funding—a further reduction from the $297,000 raised solely by the BIA levy to fund 2025, on an already financially strained organization. Additional revenue from office subletting, sponsorships, and a potential Canada Summer Jobs grant totals roughly $27,000, and is not guaranteed year to year.

Project Funding Is Not Operational Funding

Project-based grants—funds that can only be used for specific programs and activities, with very limited administrative support attached. While these grants enable valuable initiatives, they do not fund the operational capacity required to deliver them. As a result, they add substantial workload and pressure to a team already operating at maximum capacity. While valuable, these grants:

• cannot sustainably fund staffing needs, therefore adding strain to a team that are simply unable to absorb additional workload in current hours
• cannot support core operations and mandate – the funding is specifically tied to a different outcome that benefits the downtown, but not core legislated mandate
• are short-term and unpredictable

A Decision in the Best Interest of Businesses

The withdrawal of provincial levy contributions, combined with an unsustainable funding model, has created a growing mismatch between the expectations placed on the DBA and the resources available to meet them.

Faced with untenable options, the Board concluded that winding down operations is the most responsible choice to protect businesses from:

• levy increases
• reduced service levels

This decision honors the Association’s mandate to serve businesses first.

Operational Transition

Beginning January 1, 2026, the City of Red Deer will become the primary contact point for matters previously supported by the DBA, including downtown programs, business-district coordination, events, safety and cleanliness support, and stakeholder engagement. The DBA will continue to provide Clean Team services through the delivery of the City-funded environmental contract until February 1^st, 2026.  The DBA will work with City staff to support a smooth transition. 

The DBA will continue delivering the City-funded environmental contracts, including the Clean Team and Needle Debris Mitigation Program, until February 1, 2026.

Next Steps

A transition FAQ and redirection guide will be published to help businesses and partners understand next steps, including a detailed plan outlining the legacy management and wind-down of the Downtown Gift Card Program for merchants and cardholders. All existing contractual obligations will be honored, though no new applications or new project requests cannot be accepted.

Messages from Leadership

CEO, Amanda Gould

“To our business community, we have always operated with your best interests in our heart, continually driving the vision of a thriving downtown environment that serves every member of our community. The changes ahead will have a significant impact on downtown, as there will no longer be an organization dedicated to ensuring the downtown remains top-of-mind, leading events, marketing initiatives, or advocating on your behalf. It is likely you will experience less coordinated support and collective representation. After 13 years of service to you and our beautiful downtown, it is with great personal sadness that we find ourselves here, but our message remains clear — addressing the unique challenges of our downtown should not rest solely on your shoulders. We cannot, in good faith, collect a levy that does not enable us to provide the essential services needed for our evolving downtown landscape.”

Board Chair, Brandon Bouchard

“The incredible staff at the Downtown Business Association have consistently delivered on their mandate with outstanding dedication and effectiveness. Through their efforts, they have successfully promoted the downtown area, organized impactful marketing and event initiatives, and provided steadfast advocacy support for the business community. Their work has extended well beyond the legislated requirements, as they have proactively responded to the evolving needs of downtown businesses, adapting to challenges and supporting operations within a complex and changing environment.
Despite the staff’s relentless commitment to positioning the DBA as an effective leader for downtown interests, the absence of a sustainable funding model has made it impossible to continue delivering meaningful support. The Board cannot, in good conscience, propose a levy that does not enable the Association to meet the required level of service, address the shifting priorities of the business community, or respond to the continually evolving needs of the downtown.”

For further information:

DBA CEO, Amanda Gould – amanda.gould@downtownreddeer.com (until Dec 31, 2025)
DBA Board Chair, Brandon Bouchard – drummerbrandon@gmail.com (ongoing)

Check back regularly for updated information and transition details at www.downtownreddeer.com.