RED DEER COUNTY - County council is considering having a portion of Gasoline Alley deemed a hamlet in order to take advantage of less-expensive gas connection fees currently being negotiated for Springbrook.
During the July 24 council meeting, council gave first reading to a bylaw amendment that would advance Gasoline Alley West negotiations if all three readings are granted.
Currently, the county’s Municipal Development Plan states: “The County shall not approve the development of new Hamlets in the County. It shall be the priority of the County to support new development in existing Hamlets in accordance with Policy 4.2.1.”
The bylaw amendment under consideration makes an exception to the policy “for the area identified as Gasoline Alley–West Residential/Commercial on the Map 1 Future Growth Areas Concept Map.”
The move is sparked by developers’ requests for the county to enter into utility franchise agreements in both Springbrook and Gasoline Alley West, council was told.
“It has been noted that fees associated with rural franchise utility connections are considerably more expensive than those within the boundaries of an urban municipality,” a briefing note to council stated.
Based on information provided by the natural gas distributor for both the Springbrook and Gasoline Alley West, council was told Red Deer County could enter into a franchise agreement for both areas.
County council did take the first steps during the meeting to solidify a franchise agreement for Springbrook.
Council gave first reading to a bylaw authorizing the mayor and county manager to execute an agreement with ATCO Gas and Pipelines Ltd. to deliver natural gas to customers within the hamlet.
The county plans to enter into a franchise agreement with ATCO Gas. A franchise fee of 19.5 per cent would be added onto Springbrook customers’ bills but if the agreement is struck, administration said new connection fees would be less expensive than existing rates.
“However, in order for developments with Gasoline Alley West to achieve the same connection fee levels as parcels within an urban municipality, Gasoline Alley West would have to be designated as a hamlet,” the briefing notes state.
The county is permitted under the Municipal Government Act to to designate an unincorporated community located within its boundaries to be a hamlet subject to conditions or criteria which, the briefing note states, Gasoline Alley West currently meets.
Council set a public hearing date for the bylaw amendment for Aug. 21.
The franchise agreements would “allow Red Deer County developers to be competitive with neighbouring municipalities as they would no longer have the disadvantage of paying the rural connection fees,” administration noted.
