Restrictive Covenants: Competition Bureau Review – Sobey’s Acquisition of Safeway
These restrictive covenants (caveats that are registered on the land title) left by Safeway after closing stores all over Edmonton are a barrier to building complete communities, and they undermine competition in the food retail sector. (The most recent report to Council on this issue last year can be accessed here for background.)
It was great to see Petrolia Mall roar back to life in Ward 10 this summer when the caveat was finally overcome, allowing a grocery store to open up – which was so warmly received, it prompted a festival of welcome arranged by the neighbours.
After discussing this matter recently with board members from the Edmonton Federation of Community Leagues, I saw an opportunity to get council involved, and moved the motion you see below.
I’m pleased to report that it was unanimously approved by Council earlier today.
The rationale was:
Whereas Restrictive Covenants limit the ability of other retailers, particularly small independent grocers and niche food economy players like butchers and bakeries from contributing to the revitalization of vacant former grocery retail sites, which in turn perpetuates ‘food deserts’ in mature areas of our city; and,
Whereas Restrictive Covenants that forbid or severely limit retail of food and/or pharmaceuticals on former grocery sites undermine fair competition in these sectors.
The proper motion read:
That the Mayor write a letter on behalf of Council to the Competition Bureau providing input to their deliberations on Sobey Inc.’s proposed acquisition of Safeway Inc. Specifically, that Council respectfully request the competition bureau consider imposing conditions on the transaction:
1. limiting the transfer of existing Restrictive Covenants held by Safeway Inc. that limit opportunities for competition from future grocery and/or pharmacy retail on sites subject to such covenants; and
2. further, that existing covenants be struck or time-limited in the short term, and that any future restrictive covenants be discouraged or, at the very least, time-limited to no more than 5 years.
It’s a long shot, but for building complete communities and for ensuring good cooperation – it’s worth asking the Competition Bureau to intervene.
9 thoughts on “Restrictive Covenants: Competition Bureau Review – Sobey’s Acquisition of Safeway”
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This is such an important motion! I fervently hope the letter meets with some success – a long shot is better than none taken. Local grocery stores support walkability and healthy choices and add vibrancy & convenience!
Kudos, Don! The grocery store in Petrolia has made such a difference in the revitalization of the Petrolia/Greenfield area. The renewal of pedestrian traffic and accessibility for those with transportation or mobility issues is a welcome sight. A world of difference! We need more forward thinking, more decisions based on competition and more emphasis on community. We appreciate that you have been working on this throughout your terms as councillor.
Might not hurt to have the AUMA endorse the letter.
Would love to see the long time empty Safeway building in our neighbourhood used for something productive. I agree that a grocery store (or perhaps a produce store) is a wonderful thing to have in any neighbourhood.
You have my vote. All over Europe, the communities come alive around the food stores, and the pedestrians showing up to purchase daily staples. And in Toronto and Montreal, the great areas (High Park, Somerled)) have multiple small grocers, all serving customers of all ages, acquiring the “where with all” to make dinner. Lansdowne IGA, south Edmonton, has now become FIND, a junk furniture store. Too bad for all the inhabitants of Michener Park, who have no family car. And the communities contiguous, Grandview, and Lansdowne, are out of luck as well. Here we were hoping for a fresh food market… No loaf of bread or litre of milk will be possible, except in the Petro Can. Yikes. This is NOT he Canada I grew up in.
Push hard on this one.
Wow. This issue was kind of abandoned but has great potential to renew neighbourhoods. I think particularly of 66st and 118 ave. Thanks Don!
Yeah, the Find garbage dump store in Lansdowne is a real mess and completely out of place in a neighbourhood which would kill for food retail of ANY sort.
I can totally understand why Edmonton goes by the name ‘Dedmonton’ when you look at this pathetic store. If this is all because of Safeway/Sobeys, they should be boycotted at all costs.