Edmonton expands to airport’s edge in annexation deal, will pay Leduc $8.5 million over 10 years

Edmonton will not fly its flag at the airport but an annexation agreement announced Friday does include a commitment to invest in that economic hub.

The Edmonton International Airport will remain part of Leduc County. But planning around its growth will be done by consensus with four parties and their wallets in the room — Edmonton, Leduc County, the City of Leduc and the airport.

“This is not just about Edmonton, about flying our flag over the airport,” said Edmonton Mayor Don Iveson, who said everyone in the region wins if this deal brings more investment to the table. It could even mean LRT or regional rail reaches the airport faster if this drives growth.

Leduc County and Edmonton also finalized their annexation agreement Friday morning, with Edmonton agreeing to compensate the county $8.5 million over 10 years for lost taxes.
The deal also includes 50-year tax protection for residents, allowing farmers to continue to grow crops without being forced out by city taxes. Details around garbage collection, pest management and weed control were also negotiated through one-on-one meetings and public open houses with the landowners.

It commits Edmonton to not expand further into Leduc County until a joint planning study for the area is complete.

Land includes 6,235 hectares to the west of the Queen Elizabeth II Highway, and 2,625 hectares east of the highway. It does not include the business area of Nisku. Iveson said the land will be used for both residential and commercial development.

That land total represents about half of the original bid filed in 2013, reduced after Edmonton committed to building at higher densities through the Capital Region Board’s growth plan.

Investing in the airport

Airport chief executive Tom Ruth said the airport generated $2.2 billion in economic impact when measured in 2014, and that’s only grown since. They have major landholdings but need conscientious land development to avoid flight paths, new roads and underground pipes.

City of Leduc Mayor Greg Krischke said the four parties already collaborated to secure the Air China cargo flight, with municipalities backing the airport investment by several hundred thousand dollars.

“The airport is a big economic generator for the region,” Krischke said. “We’ve (now) got a game plan that will take us out 15 years.”

Neither Krischke nor Leduc County Mayor John Whaley are running again in the October election, but this framework commits successors to working groups to iron out further details.

Whaley said his council is fully in support and several councillors are standing for re-election.
A map showing the boundaries of an annexation agreement signed by Edmonton Mayor Don Iveson and Leduc County Mayor John Whaley on June 30, 2017 at Edmonton International Airport.
Deal making

Iveson said there was no business case for Edmonton to take over the airport. It requires investment, and leaving it in the region makes it more likely the entire region will participate in that plan.

Whaley said the property tax revenue is roughly $9 million now, already split three ways with the City of Leduc and Alberta Education. The county gets $3 million and spends more than $2 million providing fire-fighting services.

Friday’s announcement was the result of three years of professionally mediated negotiation, with a breakthrough when Whaley and Iveson finally just sat in a room alone together to talk.

It took trust, listening and finally seeing the issues through each others eyes, Whaley said. “It’s a bit of a cultural thing from the big city down to the rural area.”

 

Elise StolteELISE STOLTE
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Published on: June 30, 2017 | Last Updated: June 30, 2017 4:48 PM MDT

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