Red Deer council has accepted the recommendations of the Ad Hoc Economic Development Committee to adopt an arm’s-length governance model for economic development in the city.
“I want to thank the committee for their thoughtful work and dedication to advancing economic growth in Red Deer,” said Mayor Ken Johnston.
“Their recommendations provide a clear path forward and lay the groundwork for transforming how we approach economic development in our community, which undoubtedly will help us build a stronger, more resilient local economy.
In September 2024, council formed the committee to consider a new economic development model for Red Deer aimed at fostering a thriving, diverse, and competitive business environment. The committee, which started its work in December 2024, presented the report, “Red Deer’s Future Economic Development Strategy and Governance Model,” to council at a regular meeting on Monday, June 23.
Through this report, the committee delved into economic development theory, analyzed Red Deer's economic profile and drew insights from communities across Canada. Engagement with stakeholders was a key pillar in the committee's approach — members met with council, hosted key community stakeholders, and surveyed City administrative staff.
"The feedback was overwhelmingly positive, reinforcing the committee's findings and recommendations, while also providing key considerations for future strategic plans," states the report.
After evaluating four governance models, the committee concluded that the arms-length governance model was the best fit for Red Deer.
"This model would require the establishment of a Part 9 nonprofit organization, governed by a board of directors, including representation by the mayor and city manager. The organization would operate independently, driven by strategic and data-informed decisions, and will be committed to being bold, innovative and entrepreneurial in its approach," states the report.
"Red Deer, as the economic heart of Central Alberta, is uniquely positioned to facilitate regional growth and collaboration. Our ultimate strategy is designed to benefit both the city and the wider Central Alberta region, leveraging shared strengths and opportunities."
At the June 23 council meeting, the Ad Hoc Economic Development Committee received council's unanimous approval to extend the committee under the updated name of the Economic Development Arm’s Length Organization Transition and Implementation Committee until Jan. 30, 2026. With this, committee members can now begin the planning and implementation work for the new economic development organization.
"Overall, it is anticipated that the transition work will occur between July 2025 and January 2026. The committee would still exist on an ad hoc basis to council and will continue to work in co-operation with and supported by city administration to progress the creation of this organization," states the report.
The first step in this transition will be to establish the new organization and register it with the province under the legal structure as outlined in this report. The initial representatives or “initial board of directors” would be the members of the Ad Hoc Committee. This would exist until the first annual general meeting is completed, where a new board of directors is elected by the current membership.
With this registration in place, the recruitment of memberships to this organization would occur.
"With a goal of electing a new board by January 2026, the initial skills matrix of the board needs to be developed by the implementation committee. In this same vein, the active recruitment of potential Board nominations can be led by the implementation committee members."
Council passed a resolution that will see the committee continue this work, with the core mandate of establishing the new arm’s length organization and stewarding economic development for Red Deer. This work will include the development of a business plan, including a budget and economic strategy by January 30, 2026.
