Red Deer County and the Town of Innisfail plan to share economic development benefits through a joint agreement.
The agreement is the first of its kind for the county and sets out a joint economic area where both municipalities will encourage commercial and industrial growth and then share the taxes and other funding sources generated when new businesses set up.
County Mayor Earl Kinsella said the move is another step forward in intermunicipal co-operation and will benefit both.
“Both municipalities are better off if they’re both doing well, (rather) than if only one is, regardless of which it is.”
In rural municipalities, where increasing numbers of residents don’t work in agriculture but hold jobs in urban centres it is important that counties can tap into industrial and commercial development to provide a tax base to support services.
“With this type of mutual co-operation we both will benefit, I’m sure. It’s a huge step forward in long-term thinking for what’s best for the area”
The initiative was also strongly supported by councillors.
“I think this is an excellent way to go,” said Councillor Jim Wood. “I think it’s a win-win for both municipalities.”
For urban municipalities sharing taxes from nearby developments can be a better option than pursuing annexation, he added.
Councillor George Gehrke likes the initiative because it allows both municipalities to benefit from developments that spring up near urban centres.
“I think it helps both communities because maybe doesn’t have the money to develop things and Red Deer County can share,” he said.
“Of course, it benefits everybody. We both need the revenues and we both need the development.
“What better way to work?”
Innisfail chief administrative officer Dale Mather said these kinds of agreements help both municipalities to achieve economic growth.
“Basically, the town and the county have chosen to work well together. And when parties are working well together others recognize that and it does encourage growth.”
Lacombe County has pursued similar agreements with Blackfalds, Lacombe and Eckville, and Red Deer County follows a similar model.
Under the terms of the agreement, the county will share 30 to 50 per cent of taxes from new developments just outside the town with Innisfail depending on whether town water and sewer services are provided.
The agreement also includes a dispute resolution mechanism to deal with any differences of interpretation.
pcowley@www.reddeeradvocate.com