Mayor to write letter urging province to nix grocer property restrictions

Edmonton city council plans to lobby the province to change how grocery corporations can use restrictive covenants. CTV News Edmonton's Jeremy Thompson reports.

City council passed a motion Tuesday afternoon that will prompt Mayor Andrew Knack to write a letter to the province, urging it to scrap restrictive covenants.

Edmonton’s restrictive covenants – specifically with Sobeys and its various chains, including Safeway – make it so no other grocers can open near them or on their property if they leave, and it can stay in place for years.

Ward papastew Coun. Michael Janz put forward the motion, saying the restrictions impact the cost of living and can create food deserts.

“Just allowing more competition, allowing more grocery stores in more places is really favourable and very positive,” said Janz at city hall. “I think this is not a left-wing or right-wing issue, it’s just a question of fair competition that almost everybody should get behind.”

There are only a handful of corporations that dominate Canada’s grocery market, including Loblaws, Sobeys, Costco and Walmart.

Last year, the Government of Manitoba passed legislation to throw out its restrictive covenants that have led to a lack of competition among grocers in the province and voided existing ones.

The Government of Alberta says it is already looking at restrictive covenants and whether what Manitoba has done could be applied here.

“City council is aware that we have been monitoring what has been happening in Manitoba since they removed restrictive covenants to see how it could work in Alberta,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction, in a recent statement.

He said he wasn’t sure why the city had to pass a motion to call on the province to look at the issue.

Knack said he was looking forward to advocating to the province on scrapping the restrictions, which is something he’s worked towards since he became a councillor in 2013.

“Food deserts are a real thing. There are communities that have not had the opportunity to have a local grocery store – in some cases, for decades – because of the way the rules and these covenants have been designed,” said Knack. “I think there is an opportunity to say that this really isn’t helping the vast majority of Albertans … This is an Alberta-wide thing, and I hope there’s a way to make some progress.”

With files from CTV News Edmonton’s Jeremy Thompson