State of the Economy and Cannabis Retail Stores

July 2018

This Month's Issue:
State of the Economy and Cannabis Retail Stores

State of the Economy 2017

by Melanie Humphrey ([email protected] )

Each year the Economic Development department creates a State of the Economy Report, elements of which were first presented at the City's Economic Development Business Breakfast early in 2018. The report gives a high-level overview of economic indicators from an international and national level, then focuses on the provincial, regional and local St. Albert economy.

After the recession of 2015-2016, Alberta's economy improved in 2017, lead by the energy, manufacturing, and agricultural sectors. Real GDP rose, bringing with it an increase in job creation and employment. While jobs in the lucrative energy sector have not recovered to pre-recession levels, new jobs in the services and goods-producing sectors have enabled an increase in average weekly earnings.

In the Edmonton CMA as well as in St. Albert, commercial and industrial building sustained the construction industry during the recession. Residential building declined, but is recovering.

The City always maintains long term planning for residential, business, and infrastructure growth while preserving it's nationally known reputation for excellence in livability and community standards. These continuing initiatives demonstrate the City's support for balanced development and environmental responsibility.

St. Albert is committed to a sustainable community vision, supporting balanced development, the natural environment, and culture. In short, St. Albert is uniquely positioned as a leading example of smart, steady growth in the province.

Canada, Alberta and Edmonton CMA Real GDP Growth

The Alberta economy recovered from recession in 2017, and St. Albert is faring well with the province's return to economic growth. The graph below shows real GDP growth for Canada, Alberta, and the Edmonton CMA over the last ten years. All three levels of the economy show the impact of the global economic recession in 2008-09 and the slump in oil prices in 2015 and 2016. It's interesting to note that while the Edmonton CMA dipped into recession during the period, it did not dip as deeply as the provincial GDP, reflecting the somewhat different mix of business sectors in the region relative to Alberta in general. While Canada overall had modest growth in 2016, Alberta did not return to growth until 2017.

St. Albert Housing Starts

The graph above shows housing starts in St. Albert, using of date of permit issuance as a proxy for start date. The graph tells an interesting story: from 1997 through the recession of 2008-2009, single-family starts dominated the market. In this time period there was an average of 446 single family homes and 90 multi-family homes built per year, and there were two years where no multi-family dwellings were built at all. However, since the recession, multi-family starts have significantly increased, with an average of 201 single-family and 252 multi-family dwellings being built a year. This could be attributed to multiple factors such as changes in the land use bylaw aimed at increasing neighborhood densities, coupled with an increasing demand for more affordable housing and buyer comfort with multi-family housing in general. A large project such as Grandin Parc Village or 25 Element Drive can cause a significant rise in the proportion of multi-family units year-to-year.

St. Albert Building Permit Values 2006-2017

The graph above shows total residential and non-residential building permit values for St. Albert for 2006 to 2017 in millions of dollars Canadian. Permit activity in general lowered in the wake of the 2008-2009 recession but came back noticeably in 2013. Total permit values remained relatively steady from 2013 through 2015. In 2014-16, residential permitting values dropped, possibly in response to weakening oil prices. However non-residential values increased, most noticeably in 2016, due to increased commercial and industrial development. Total residential permit values increased strongly from 2016 to 2017.

The full report, which is now available on the City of St. Albert's website, is intended to be used as a tool to inform future decisions, however, residents and local businesses can also reach out to the Economic Development department should they have questions specific to their industry and circumstance.

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In This Issue

State of the Economy 2017

Cannabis Retail Stores in St. Albert

Small Business Week - Awards of Distinction Nomincations

Canada's Top Accelerator Program

Business Spotlight On...Confections Cake Company

New Businesses in St. Albert

Monthly Growth Stats

Join the Conversation!

Upcoming Events

Rock'n August

August 7 - 11

Cannabis Retail Stores in St. Albert

by Monty Killoh ( [email protected] )

This past month, St. Albert's City Council approved amendments to the City's Land Use and Business Licensing Bylaws to regulate cannabis retail stores in St. Albert. Below is a summary of those regulations that will come into effect once the federal government legalizes the retail sale of recreational cannabis on October 17th, 2018.

Land Use Bylaw

The Land Use Bylaw regulates where businesses are allowed to operate. These regulations are typically reviewed and applied through the development permit application process, which is a standard part of the approval process for any business that opens a new location in St. Albert.

For cannabis retail stores, the zoning regulations will be similar to those used for liquor retail stores: cannabis retail stores will be allowed to operate in most commercial areas in St. Albert as a "discretionary use" (see the map below for details). "Discretionary Use" means that a Development Officer can approve or refuse a development permit application using their own discretion, and either the applicant or persons affected by the decision can appeal it through the Subdivision Development and Appeal Board (SDAB: https://stalbert.ca/cosa/leadership/committees/sdab/). Cannabis retail stores will not be permitted to operate in commercial districts within residential neighborhoods or certain business park districts.

As shown in the map, the bylaw also includes certain setback requirements for cannabis retail stores. Cannabis retail stores cannot be located:

Within 150 metres of a parcel on which a school is locate;
Within 150 metres of a parcel that is designated as a school reserve;
Within 100 metres of the Sturgeon Hospital and Youville Home;
Within 100 metres of another cannabis retail store.

The bylaw allows for the separation distances to not take effect should an "arterial roadway" separate a cannabis retail store from one of the above-mentioned areas.

Business Licence Bylaw

St. Albert's Business Licence Bylaw regulates the operational aspect of Businesses in St. Albert. Council approved the following amendments to regulate cannabis retail stores in St. Albert:

Cannabis retail stores will pay an annual business licence fee of $854.76 (the same amount paid by businesses that sell tobacco products).
"Cannabis" is classified as a restricted product along with "Cannabis Accessories," and the following requirements apply to businesses that sell restricted products:
- No store can sell a restricted product to minors;
- No store can display restricted products in a way that makes them visible from outside the store.
- If complaints are received about a business that sells restricted products, the following specific conditions can be placed on the business licence, at the discretion of the City:
  - A requirement that the establishment can only operate between the hours of 10:00AM and 10:00PM;
  - A requirement that all cannabis product must be stored in sealed containers/packaging while it is kept/stored at the establishment.

The City is still finalizing the permit/licence application process for cannabis retail stores. Once the process has been approved and a date for accepting applications is confirmed, information regarding the process and timelines will be announced and posted on the City's cannabis webpage ( https://stalbert.ca/cannabis).

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Small Business Week - Awards of Distinction Nominations
by Nicole Pearson ( [email protected])

Small Business Week is a national celebration of Canadian entrepreneurs and their contribution to Canada's economy. In 1979, the Business Development Bank of Canada (BDC) business centres in Fraser Valley pooled their resources to organize a week of activities for entrepreneurs. Two years later, BDC decided to launch BDC Small Business Week across Canada. The initiative was quickly adopted by Canada's business community and has been celebrated every year since during the third full week of October. Events held during the week bring together entrepreneurs and small businesses at conferences, workshops, luncheons and awards ceremonies. The goal is to provide them with opportunities to learn, network, share ideas and socialize with their peers. This year's celebration is from October 14-20, 2018.

The St. Albert and District Chamber of Commerce organizes this national week locally to recognize small business success and its important contributions to our community. The week kicks off at their Business@Lunch event, taking place the Wednesday leading up to the week (October 10). Throughout the week there are breakfasts, lunches, and after hour events featuring speakers who have taken their small business to the next level. The week of activities culminates with an Awards of Distinction ceremony to honor and recognize the contributions and achievements of the businesses in our community.

The St. Albert and District Chamber of Commerce is currently accepting nominations for the Small Business Week Awards of Distinction. The nomination deadline is September 7 and award categories include:

Small Business Award
Young Entrepreneur Award
Business to Business Award
Ignite Award
Marketing Award
Outstanding Customer Service Award
Community Leadership Award
Community Stewardship Award

If you know a business that deserves this award for their outstanding work, nominate them here.

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Canada's Trade Accelerator Program

Business Spotlight On... Confections Cake Company

by Luke Wright-Mascotto( [email protected] )

What started out as a dream turned to reality for pastry chef Brittany Allen. On May 12 she opened Confections Cake Company in the heart of downtown St. Albert with her partner in life and business, Jarett Delaney. Located at 15 Perron Street, this business offers custom desserts along with a unique in-house experience.

Allen completed the pastry chef program at Vancouver Island University and then, as part of her training, she completed a work experience opportunity at Duchess Bake Shop, introducing her to Edmonton's pastry scene. She then spent five years with Over the Top Cakes in St. Albert as head decorator prior to opening Confections Cake Company.

"I always wanted to have my own restaurant; I love being creative," says Allen. "Jarrett loves desserts, and he pushed me to follow my dream."

Confections Cake Company supplies custom cakes for birthdays or weddings, while also offering a wide array of pastries. This is also paired with a light food menu, along with all the modern coffee options including an assortment of liquor choices, making a meal out of dessert. Customers get to bite into their choice of hand-made macarons, cookies, caramel popcorn, cake slices, cheesecake, crème brûlée and more.

"I go to a lot of restaurants and the food is amazing, and then the dessert is kind of forgotten about. I think the dessert is the best part," co-owner Brittany Allen said. Their cozy spot offers more than just great dessert options but a warm environment to enjoy a unique experience. The young entrepreneurs have filled the dessert bar with art by local artists giving it a feeling of community in the downtown area.

Brittany and Jarett have a continuously growing and changing menu keeping the options fresh and exciting. They are also hoping to bring different event nights to their business including: movie night, stand-up comedy, date night and so much more. It is safe to say many interesting developments are coming to Confections Cake Company making them a sought-after night out.

Confections Cake Co.

140 - 15 Perron Street

St. Albert, AB

587-873-6502

[email protected]

The Spotlight on Business is a monthly feature wherein we highlight a local business and learn more about what they do and how they positively contribute to the identity and economy of St. Albert. If you, or someone you know, would like to be featured in a future issue, please contact [email protected] with a brief description of the organization.

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