Edmonton Mayor Takes Action Against Grocery Store Restrictive Covenants
Edmonton Mayor Andrew Knack is spearheading a renewed effort to persuade the provincial government to prohibit grocery companies from imposing restrictive covenants on properties they vacate. This practice has led to the emergence of "grocery deserts" in various parts of the city, where empty storefronts remain unused because legal restrictions prevent competitors from moving in.
City Council's Unanimous Support for Change
On Tuesday, Edmonton City Council voted overwhelmingly, with a 12-1 majority, to direct Mayor Knack to advocate for legislative changes at the provincial level. The motion specifically calls for amendments to the Land Titles Act or other relevant legislation to enable greater grocery store competition by removing restrictive covenants and exclusivity controls.
The lone dissenting vote came from Ward tastawiyiniwak Councillor Karen Principe, while the rest of council showed strong support for the initiative. Mayor Knack expressed no reservations about taking on this advocacy role, noting he has encountered this issue multiple times during his tenure on council.
The Problem with Restrictive Covenants
Under current provincial legislation, grocery companies can place restrictive covenants on properties when they sell them, effectively preventing other grocery retailers from establishing operations in those locations. This has created a paradoxical situation where neighborhoods lack access to grocery stores despite having suitable buildings available.
"I've actually dealt with this three times in my time on council," Mayor Knack stated. "Really for this topic, there's one solution — the province can remove it or not remove it."
Industry Willingness and Political Momentum
Ward papastew Councillor Michael Janz, who introduced the motion, revealed that he has consulted with representatives from all three major grocery companies operating in Alberta. According to Janz, these companies indicated they would be prepared to end the practice of restrictive covenants if their competitors did the same.
"They were interested in making changes here, but they want to do so knowing that everybody else will as well," Janz explained. "Industry is willing. If the regulator makes the change, you'll see a favourable outcome. They all kind of know this practice looks very anti-competitive."
Looking to Manitoba for Solutions
The Edmonton motion specifically advocates for Alberta to implement legislation similar to Manitoba's "Property Controls for Grocery Stores and Supermarkets Act." This Manitoba law, introduced by the New Democratic Party government, amends the Land Titles Act to forbid grocery chains from creating restrictive covenants and voids existing ones.
In Manitoba, grocery chains were given a six-month window to apply for exceptions to the new law, with 46 companies submitting applications. The Edmonton initiative aims to replicate this approach to address what has become a persistent problem in the city.
Longstanding Struggle Against Grocery Deserts
Edmonton has been grappling with restrictive covenants for nearly two decades. A notable example occurred in 2019 when Sobeys acquired Safeway and subsequently shelved plans to build a new store in the Griesbach neighborhood. The city sent a letter to Sobeys regarding this decision but received no response.
Ward Nakota Isga Councillor Reed Clarke emphasized his personal connection to the issue, stating, "As someone who has local grocery stores in my blood, I have to support this."
The motion represents Edmonton's latest attempt to combat the proliferation of grocery deserts across the city. By advocating for provincial legislative changes modeled after Manitoba's approach, city officials hope to create a more competitive grocery market and improve food access for all Edmonton residents.
