The Town of Banff is taking a closer look at the idea of saving existing grocery stores and gas stations as vital services for residents and tourists.
On a 4-2 vote, town council has sent the controversial issue to a working group for further discussion and economic analysis before making a final decision.
Darren Enns, senior planner for the Town of Banff, said a buildout study indicated supermarkets are the most at-risk retail service in the community.
“In a way, we’re a victim of our own success,” said Enns, also the project leader of the Land Use Bylaw (LUB) review.
“Should rents go up, there’s only a finite price people will pay for a loaf of bread before they go to Canmore.”
A 2007 study which looked at the implications of full build-out once Banff’s commercial cap is reached concluded escalating commercial rents could eventually force out the two existing grocery stores.
It concluded Banff is unique in that the ability to lease commercial space is placed at a premium by federal commercial growth regulations, which arguably places pressure on rental rates.
The review team has been examining this issue amid concerns it would be disastrous for the community if Nester’s or Safeway were converted to more profitable uses.
In what is known as soft spot zoning, the team is recommending that a new land use district be created for the “Nester’s” and “Safeway” properties, with the sole permitted land use being grocery store.
Other uses previously permitted outright would be moved to a discretionary category, meaning they would require approval from the Municipal Planning Commission.
The landlords of the building which Nester’s currently occupies – the Peter and Catharine Whyte Foundation – are voicing strong opposition.
Graeme Nunn, the foundation’s executive director, said the proposal will not accomplish the goal of preserving grocery stores, and said future preservation is solely dependent on ensuring their economic viability.
“What spot zoning will accomplish is to unfairly penalize the affected property owner by limiting its lease options, artificially lower attainable commercial rents well below market and negatively impact the value of these real estate investments,” he said.
“Spot zoning will result in limited future investment in grocery stores, both at the contemplated locations and elsewhere.”
Nunn said if grocery stores are critical services the community wishes to protect, perhaps a more favourable property tax or a change to Public Service zoning should be considered.
“If Safeway and Nester’s are critical resources that the community wishes to protect, should it not be left up to the Banff community to help ensure their economic viability through their choice to shop locally?”
Mayor Karen Sorensen has raised questions as to why grocery stores are identified as critical, but not banks, lawyer’s and doctor’s offices, and the post office.
“If we were to proceed with this, I’m interested to know is there a limit of what we call essential?” she asked. “Also, I’d like to see some discussions around incentives, rather than penalizing.”
Councillor Leslie Taylor agreed to send it for further review to a working group, but said she’s not convinced this is the right approach to preserve grocery stores.
She said she’s also interested in seeing a review of the impacts on any other communities that have implemented this type of zoning.
“The feedback I get is, ‘can you imagine the lineup if one of these stores close?’ It would be disastrous, but I’m not sure this approach is going to do what we want it to,” she said.
“If a grocery store becomes non-economically viable and if a grocery store closes its door, we can’t prevent it.”
Councillors Paul Baxter and Stavros Karlos wanted to kill the proposal outright.
“The world-wide expert is the free market itself,” said Baxter. “The idea of spending more time and money on this, we’ll, I’m struggling with that.”
Currently, the LUB regulates large-scale grocery stores as a general retail store – the same definition used for sweet shops, souvenir stores, tobacco stores and just about any other retail venture.
This means that should a grocery store wish to transform into a souvenir shop or a clothing store, no public process or need for a development permit would be triggered.
The review team says zoning by itself cannot ensure grocery stores will always exist in Banff, but it’s one of the few regulatory tools available to retain these critical retailers within the town.
Restrictions on transferring commercial floor space from these properties could also be instituted.
Enns said the LUB review is an opportunity to look ahead and address issues associated with land use change before they happen.
“The goal is not to discourage other uses, but give the public a chance to have input into what they think is a critical community service,” he said.
“For example, if Nester’s wanted to carve up into three different retail outlets, the public could have some input.”
On a similar basis, the municipality is also looking to protect its existing gas stations from being turned into more profitable ventures, such as hotels.
While the LUB regulates gas stations as a unique use, the land use districts, which permit gas stations, also allow a number of other permitted and discretionary uses.
This situation would allow a gas station in the commercial accommodation district to convert to a hotel without any public approval mechanisms.
The review team is recommending a new land use district be created, limiting the sole permitted land use to “service station”. Other previously allowed uses would remain as discretionary uses. Restrictions on transferring commercial floor space from these properties could also be instituted.
In the last 15 years, Banff has gone from seven gas stations to three. One was demolished as part of a federal government land takeover, but two others converted to hotels.
“I’m very interested in hearing about incentives to maintain these businesses,” said Mayor Sorensen.
