TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY - The Town of Okotoks
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TOWN OF OKOTOKS
COMMERCIAL AND INDUSTRIAL GROWTH STUDY
May 2021
Project Preface
MXD Development Strategists Ltd. The resulting Commercial Development MXD Development Strategists Ltd. do not
(“MXD”) of Richmond, British Columbia, Analysis document highlights seven warrant that any estimates contained within
was commissioned by the Town of opportunity areas for immediate and the study will be achieved, but that they
Okotoks (“the Client”) in December 2020 medium-term commercial and industrial have been prepared conscientiously on
to prepare a Commercial and Industrial development that balances market, the basis of information obtained during
Growth Study. Work was completed economic and planning considerations. the course of this market analysis.
between December 2020 and May 2021. Three recommended priority projects are
identified within these opportunity areas. Reference material used for this report
The purpose of this assignment was to was derived from the project team, as well
assess, identify and define the potential The figures presented in the report are as from the public and private sectors and
development opportunities for commercial based on an evaluation of the current government publications. This information
and industrial development in Okotoks general level of the economy in the local was supplemented by MXD’s experience in
from a real estate, economic and planning and regional market, and neither take urban planning and real estate development.
perspective. The second key objective into account, nor make provisions for
was to identify immediate and medium- the effect of any sharp rise or decline in
term opportunities for commercial and local or general economic conditions.
industrial development in Okotoks and
the optimal mix and positioning of land
uses for these areas for opportunity.
i TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
TABLE OF CONTENTS EXECUTIVE SUMMARY E1 01 INTRODUCTION AND METHODOLOGY 1 1.1 Project Introduction 2 02 EXISTING CONDITIONS AND POLICY ANALYSIS 3 2.1 Context & Demographics 4 2.2 Policy Analysis 9 2.3 Current Land Use Patterns 19 2.4 Commercial & Industrial Nodes 20 2.5 Area Structure Plans 21 2.6 SWOT Analysis 22 03 STAKEHOLDER CONSULTATION 24 3.1 Introduction 25 3.2 Key Themes and Takeaways 26 04 REAL ESTATE MARKET ANALYSIS 28 ii TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS
4.1 Introduction 29 4.2 Calgary Metro Key Economic Sectors Overview 30 4.3 Real Estate Market Analysis 36 4.4 Office Analysis 43 4.5 Retail Analysis 47 4.6 Hotel Analysis 52 4.7 Overall Development Program and Key Takeaways 55 4.8 Target Economic Sectors 57 05 POSITIONING, ALLOCATION AND PRIORITY AREAS 58 5.1 Introduction 59 5.2 Nine Big Ideas 60 5.3 Positioning and Demand Allocation 61 5.4 Opportunity Areas 62 5.5 Recommended Development Typologies 65 5.6 Priority Areas 67 06 ACTION AND IMPLEMENTATION PLAN 77 6.1 Action and Implementation Plan 78 SOURCES 81 Report Sources 82 iii TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS
LIST OF FIGURES Figure 2.1: Okotoks Context to Calgary Metro Region................................................................................................................................................................4 Figure 2.2: Okotoks Context to City of Calgary.............................................................................................................................................................................5 Figure 2.3: Population Distribution by Age Cohort (2016)..........................................................................................................................................................6 Figure 2.4: Okotoks Current and Projected Population...............................................................................................................................................................7 Figure 2.5: Household Tenure (2016).............................................................................................................................................................................................8 Figure 2.6: Educational Attainment and Unemployment (2016)................................................................................................................................................8 Figure 2.7: Policies Relevant to the Okotoks Commercial & Industrial Study.........................................................................................................................9 Figure 2.8: Jurisdiction of the SSRP showing Cities, Towns, Counties and Municipal Districts.........................................................................................10 Figure 2.9: Boundaries and municipalities part of the Calgary Metro Region.......................................................................................................................11 Figure 2.10: Boundaries of the Intermunicipal Development Plan including Gateway Areas.............................................................................................12 Figure 2.11: Future land-use map of Okotoks............................................................................................................................................................................13 Figure 2.12: Study Area of the Downtown Okotoks Urban Design Master Plan....................................................................................................................16 Figure 2.13: Strategic Directions of the Okotoks Strategic Plan..............................................................................................................................................17 Figure 2.14: Town of Okotoks Districts........................................................................................................................................................................................19 Figure 2.15: Primary Commercial and Industrial Nodes in Okotoks.......................................................................................................................................20 Figure 2.16: Area Structure Plans in the Town of Okotoks.......................................................................................................................................................21 Figure 4.1: Key Economic Sectors Under Consideration..........................................................................................................................................................30 Figure 4.2: Under Construction Inventory (SF) by Submarket, Q4 2020................................................................................................................................36 Figure 4.3: Net Industrial Absorption by Submarket, 2020......................................................................................................................................................36 Figure 4.4: Quarterly Okotoks Industrial Vacancy Rate, 2016-2021 YTD................................................................................................................................38 Figure 4.5: Quarterly Okotoks Industrial Net Absorption (SF), 2015-2020 ............................................................................................................................38 Figure 4.6: Quarterly Okotoks Industrial Vacancy Cap Rate, 2015-2020................................................................................................................................39 Figure 4.7: Southbank Business District.....................................................................................................................................................................................40 Figure 4.8: Existing Okotoks Industrial Supply Map..................................................................................................................................................................41 Figure 4.9: Annual Calgary Suburban Office Net Absorption and Deliveries (SF), 2016-2020............................................................................................43 Figure 4.10: Quarterly Okotoks Office Vacancy Rate, 2015-2020.............................................................................................................................................45 Figure 4.11: Calgary Retail Inventory by Submarket as Percent of Total Inventory............................................................................................................47 Figure 4.12: Vacant Retail Inventory by Submarket as Percent of Total Vacant Inventory ................................................................................................47 Figure 4.13: Okotoks Retail Quarterly Vacancy Rate, 2015-2020.............................................................................................................................................48 Figure 4.14: Okotoks Quarterly Retail Deliveries (SF), 2015-2020..........................................................................................................................................48 Figure 4.15: Okotoks Retail Quarterly YOY Rental Growth Rate, 2015-2020..........................................................................................................................49 Figure 4.16: Existing Okotoks Retail Supply Map......................................................................................................................................................................50 Figure 4.17: Existing Okotoks Hotel Supply Map.......................................................................................................................................................................53 Figure 4.18: Targeted Economic Sectors.....................................................................................................................................................................................57 iv TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS
Figure 5.1: Town of Okotoks Districts..........................................................................................................................................................................................61 Figure 5.2: Commercial and Industrial Opportunity Areas.......................................................................................................................................................62 Figure 5.3: Commercial and Industrial Priority Areas..............................................................................................................................................................67 v TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS
LIST OF TABLES Table 2.1: Population Statistics - Okotoks vs. Calgary ...............................................................................................................................................................6 Table 2.2: Socioeconomic Statistics - Okotoks vs. Calgary ........................................................................................................................................................8 Table 5.1: Recommended Development Typologies..................................................................................................................................................................65 vi TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL STUDY | MXD DEVELOPMENT STRATEGISTS
EXECUTIVE SUMMARY E1 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
Executive Summary
This report provides an analysis and An economic analysis and real estate The Priority Areas are as follows:
evaluation of the existing conditions market analysis demonstrate that there • Southbank Business Park – Light
and opportunities of commercial and are unique opportunities for Okotoks to industrial, flex industrial, flex office,
industrial development in the Town of leverage and build-upon that will generate and general commercial uses.
Okotoks. Methods of analysis include substantial non-residential development
stakeholder consultation, policy review, and diversify the local economy. The Real • North Point Area Structure Plan
demographic analysis, real estate market Estate Market Analysis determined a 20- – Logistics, manufacturing, light
analysis, and quantitative modeling. year demand program for Okotoks. The industrial, flex industrial and
following is the Moderate Scenario findings: general commercial uses.
The report finds that Okotoks is a desired • Industrial – 2 million • Downtown Culinary Row – Destination
community to live in, demonstrated by its square feet by 2042 food & beverage cluster anchored by
strong residential growth over the past breweries, distilleries, restaurants,
several decades. Retail development has • Office – 191,000 square feet by 2042 and small-scale food production.
followed residential growth, and Okotoks • Retail – 460,000 square feet by 2042
has been able to land major retailers such • Hotel – 130 rooms by 2042 The report also explores the fact that the
as Costco while maintaining its downtown analysis and recommendations require
businesses. While Okotoks is a great place to Opportunities for commercial and strategic action and implementation from the
live due to its small-town feel coupled with industrial development are laid out in the Town to ensure that future commercial and
outdoor lifestyle and big city amenities, it still recommendations of the report; primarily industrial development comes to fruition and
has the perception of a bedroom community in the seven distinct Opportunity Areas is successful. The Action and Implementation
where people live and commute for work along with three near to medium term Plan includes the resulting commentary:
across the Calgary region. Furthermore, Priority Areas. Each Opportunity Area • Shift the Perception of Okotoks
it has not been regarded as a place that is has recommended uses and development • Promote Small Business
“business friendly” or “investment ready”. typologies, as well as a description of its
Employment development has been slow overall vision. The Priority Areas delve into • Cost Competitiveness
in Okotoks, especially for light industrial, further detail including policy, planning, • Agile Development Process
flex industrial and medium industrial infrastructure, and economic development • Phasing
product. The Town is now shifting towards initiatives required for implementation.
being more competitive for investment in • Covid-19 Impacts
Each Priority Area offers different types of
employment uses and promoting greater development and uses in three districts of • Review Purchase of Strategic Parcels
growth and opportunity for business. the town: North, South, and Downtown. • Collaboration and Partnerships
E2 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
Executive Summary (continued) In summary, this report concludes that Okotoks can realize its ambitions and Okotoks has a strong vision of where it achieve long-term success with proper is headed: a sustainable and diversified implementation, along with continued town that offers a high quality of living to collaboration with the private sector its residents. The positioning statement business and development community. of the Commercial and Industrial Growth Study is “Build a diverse economy that supports the high quality of life Okotoks is already known for and position the Town as an attractive location for economic development and investment.” E3 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
01 INTRODUCTION AND METHODOLOGY 1 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
1.1 Project Introduction
MXD Development Strategists Ltd. In the past, the Town primarily focused on Methodology
(“MXD”) of Richmond, British Columbia, residential development and the retail and
Research and analysis were conducted
was commissioned by the Town of services required to support residents.
from both a qualitative and quantitative
Okotoks (“the Client”) in December 2020 Economic development and generating
perspective. A review of existing conditions
to prepare a Commercial and Industrial employment growth in key sectors to create
created a baseline understanding of the
Growth Study. Work was completed a more sustainable and complete community
current planning context and market
between December 2020 and May 2021. is now a priority moving forward. The
realities in Okotoks and the surrounding
development of employment lands and new
region. Stakeholder consultation was
This study was undertaken to provide a commercial uses will create a more diverse
conducted with a variety of individuals
comprehensive strategy on the future mix of real estate in the Town. Accordingly,
who represent public and private sector
growth of commercial and industrial this study and strategy considers and
interests. Market demand models using
development in Okotoks. The Town has been makes recommendations on the optimal
current and historical real estate data
one of the fastest growing municipalities in path forward for Okotoks from an industrial,
supplied by CoStar and local commercial
Canada and had over 29,000 residents as office, retail, and hotel perspective. This
brokers informed the market analysis
of 2018. Considerable residential growth strategy will place the Town in a “ready
including demand over a 20-year period.
over the past several decades has placed to go” position for responding to future
pressure on the Town to manage this growth opportunities for non-residential
growth from planning, transportation, and development. This strategy also provides
infrastructure perspectives. The recent recommendations on opportunity areas
annexation agreement between Okotoks for non-residential growth, as well as
and Foothills County Municipal District several priority sites that should be areas
has provided for future development of focus for the Town in the near term.
lands that the town can expand into.
2 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS02 EXISTING CONDITIONS AND POLICY ANALYSIS 3 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
2.1 Context & Figure 2.1: Okotoks Context to Calgary Metro Region Demographics The Town of Okotoks is in the Calgary Metropolitan Region, approximately 20 km south from the City of Calgary and directly east of the Rocky Mountains. It is surrounded by Foothills County and is well connected to the region by the Highway 2 corridor. Highway 2A provides a secondary linkage to South Calgary. The Town is bisected by the Sheep River that adds to its unique location and beautiful setting. 4 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
Okotoks has grown considerably over Figure 2.2: Okotoks Context to City of Calgary the past several decades and now is home for just over 30,000 residents. The Town has a high-quality of life and is considered an excellent place to raise a family with well regarded schools, recreation, culture, shopping, and a small-town feel that is very desirable. Although there are residents that live and work in the Town, Okotoks is considered a commuter suburb as a sizable portion of the working population travels to Calgary and surrounding communities for employment. Connectivity along Highway 2 makes it simple to commute from Okotoks to Calgary, with an approximate 15-minute drive to South Calgary and a 30-minute drive to Downtown. Okotoks is positioned to grow considerably over the next twenty years, with significant residential growth expected. The Town is focused on increasing the amount of non- residential development to ensure that Okotoks grows sustainably and has a proper live-work-play balance for its residents. 5 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
2.1.1 Current Population &
Future Population Projections
According to the 2018 municipal census, the
29,002 1,477/km2
Town of Okotoks has a population of 29,002. Population (2018) Population Density (2018)
The next federal census will be conducted
in 2021. According to the Alberta Regional Source: Town of Okotoks./Statistics Canada
Dashboard, the Town of Okotoks had a
Table 2.1: Population Statistics - Okotoks vs. Calgary
population of 31,569 in 2020, with a roughly
even split in its male and female population
groups (15,660 vs. 15,909, respectively).
Notable differences in Okotoks’
current population makeup
Source: Statistics Canada
compared to Calgary include:
• Okotoks has a significantly larger
Figure 2.3: Population Distribution by Age Cohort (2016)
percentage of residents in the age
0-14 segment and a lower percentage
of adult population (ages 15-64)
than Calgary, which contributes to
the Town’s lower mean and median
age. Okotoks is a family-friendly
community attractive to young
families, which is demonstrated in
these demographic age cohorts.
• As of 2016, Okotoks’ visible minority
population is 7.2%, about five times
less than that of Calgary (35.7%).
Source: Statistics Canada
6 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTSThe Okotoks Municipal Development Figure 2.4: Okotoks Current and Projected Population
Plan projects the following:
• By 2041: a population estimated at
44,000; 15,000 to 20,000 workers
• By 2076: a population estimated at
68,000; 22,000 to 30,000 workers.
Okotoks projects to have an additional
population of approximately 13,000 new
residents by 2041. This will have direct
correlation to the amount of new retail
and locally servicing employment that
will be required to serve these new
residents. As displayed in the right-side
graph, Okotoks projects to have nearly
70,000 residents by 2076 which is more
than double the current population.
Source: Town of Okotoks
7 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.1.2 Household Income Table 2.2: Socioeconomic Statistics - Okotoks vs. Calgary
vs. Household Tenure
As of 2015, the median total income of
households in Okotoks was $116,313,
nearly 20% higher than that of Calgary.
Source: Statistics Canada
This could be socioeconomically correlated
with Okotoks having a noticeably lower Figure 2.5: Household Tenure (2016)
proportion of rental households than Calgary,
given that rental housing stock is typically
more affordable than home ownership.
Okotoks has a slightly greater average
household size than Calgary (3.0 vs. 2.6), which
is explained by the Town having a larger age
0-14 cohort as part of young families. Young
families, many of whom have built-up income,
would generally prefer the more stable form of
tenure in home ownership over rental housing.
Source: Statistics Canada
2.1.3 Household Income vs.
Figure 2.6: Educational Attainment and Unemployment (2016)
Educational Attainment
Despite Okotoks’ higher median total household
income than in Calgary, the Town has a lower
proportion of those with postsecondary
education. This could be due to how Okotoks
being situated further from the University of
Calgary and other higher-learning institutions,
along with a smaller-scale economy that
is less concentrated in professional fields
Okotoks has a lower unemployment rate
than Calgary, which could be attributed
to the Town having less competition and
barriers to entry into the workforce. Source: Statistics Canada
8 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2 Policy Analysis Figure 2.7: Policies Relevant to the Okotoks Commercial & Industrial Study
Numerous levels of planning documents
govern the direction of land use and
growth in the Town of Okotoks. This
section provides a summary analysis of
plans and policies relevant to the study of
commercial and industrial development.
Policy documents reviewed for
the Commercial and Industrial
Development Study:
1. South Saskatchewan
Regional Plan (2014)
2. Calgary Metropolitan Region Board
Interim Growth Plan (2018)
• Full Growth & Servicing Plan
currently under production.
3. Okotoks-Foothills Intermunicipal
Development Plan (2016)
4. Okotoks Municipal
Development Plan (2021)
5. Okotoks Downtown Urban
Design Master Plan (2018)
6. Okotoks Strategic Plan (2018-2021)
7. Okotoks Economic Development
Strategic Plan (2018 Update)
8. Okotoks Growth Study & Financial
Assessment (2016 update)
9 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.1 South Saskatchewan Figure 2.8: Jurisdiction of the SSRP showing Cities, Towns, Counties and Municipal Districts
Regional Plan (SSRP) (2014)
The South Saskatchewan Regional Plan
(SSRP) was approved in 2014 under
the Alberta Land Stewardship act and
is the highest-level governing policy
within Alberta’s Land Use Framework
(LUF) for its region, consistent with the
South Saskatchewan River watershed.
This document provides a clear policy
direction for economic, environmental, and
social objectives in the region. Municipalities
within the region, including Okotoks, must
review and amend their plans and bylaws
to be in compliance with the SSRP. The
SSRP contains specific language for efficient
use of land and sustainable community
development. The direct relevancy of the
SSRP to the Okotoks Commercial and
Industrial Study is low given its trickle-
down effect on municipal planning policy.
Source: Government of Alberta
10 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.2 Calgary Metropolitan Figure 2.9: Boundaries and municipalities part of the Calgary Metro Region
Schedule 1: Regional Context
Region Board Interim
Growth Plan (IGP) (2018) BOTTREL !
MADDEN 574
2A
CROSSFIELD
806
!
º
! 574
22 72
BEISEKER
o 9
The CMRB was established in 2018 as a
791
766 2
ROCKY VIEW 772 AIRDRIE IRRICANA
COUNTY
non-profit regional authority and consists !
COCHRANE LAKE
567
o
567
40
of 10 municipalities in the Calgary Metro,
!
1A BALZAC KATHYRN
! ! KEOMA
STONEY COCHRANE ! 566
including Okotoks. The board oversees NAKODA
NATION !
(
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DELACOUR !
planning policy and direction for the region.
DALROY
791 !
HARMONY !
( o !
1
o CONRICH
!
9 817
All MDPs and subsequent municipal policies
68 CHESTERMERE STRATHMORE
563
1
and bylaws must comply with the CMRB
CHEADLE
8
CALGARY
201 !
JANET
797 !
WHEATLAND
TSUUT'INA 560 24 COUNTY
Growth Plan, which is currently under
!
NATION LANGDON !
!
BRAGG CREEK
758
INDUS
production. The approved IGP acts as the
!
66 ! PRIDDIS
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PRIDDIS ! DALEMEAD
Document: M:\27174_CMRIGP\25_GIS\251_Figures\1_Working\Context_Figures\27174_Schedule1_Regional_Context_180924.mxd
GREENS !
2A
guiding statutory document for the region
!
762 HERITAGE POINTE !
22 DE WINTON
!
prior to the adoption of the Growth Plan.
552
797
MILLARVILLE 552 OKOTOKS
!
Focus areas of the IGP include land-use,
549 549
o 2 547 !
7
growth, and infrastructure planning. TURNER VALLEY
546
BLACK
DIAMOND ALDERSYDE
! 799
783
2A BLACKIE
!
543 !
HIGH RIVER 23
Relevant Policies and Language LONGVIEW
o !
541
MUNICIPAL DISTRICT
The IGP is a statutory policy and is highly STONEY
540
OF FOOTHILLS
!
!
indicative of economic growth in the
NAKODA NATION CAYLEY
(EDEN VALLEY)
region. Okotoks and other jurisdictions in 22
!
the Calgary Metro Region must ensure
Date: 9/24/2018
Service Layer Credits: Source: Esri, DigitalGlobe,
GeoEye, Earthstar Geographics, CNES/Airbus DS,
USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, km
any new or amended MDP's or ASP's that swisstopo, and the GIS User Community 1:700,000
! 0 5 10 20 30
Calgary Metropolitan Region
direct residential and employment growth o InternationalCalgary
Source: Airport CMRB Member First Nation Reserve
Metropolitan Region Board Interim Growth Plan
o Other Airport Non-Member Provincial Park or
align with the policy directions in the IGP. Provincial Highway ! Hamlet
Protected Area
Hydrology
When the fulsome regional growth plan CMRB Boundary
b) Optimize
Urban Communitythe
Unincorporated
!
(
† use of facilities, where and as appropriate
is adopted all member municipalities existing infrastructure when
† While designated as full service hamlets in Rocky View County's County Plan, Harmony and Glenbow Ranch are not recognized as hamlets by Alberta Municipal Affairs. Current as of Sep-24/18
to the local scale and context.
will be required to update their MDP's. accommodating growth. • 3.4.5 Employment Areas
Current IGP policies in effect include: • 2.3 Encourage Efficient Growth and 3.4.5.1: Employment areas shall
• 2.1 Promote the Integration and Strong and Sustainable Communities be planned and developed to
Efficient Use of Regional Infrastructure d. Plan for community nodes with a make efficient and cost-effective
d) Protect the function of mix of uses and a range of housing use of existing and planned
regionally significant mobility types, mobility choices, including infrastructure and services.
and transmission corridors. transit, and community services and
11 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.3 Okotoks & Foothills Figure 2.10: Boundaries of the Intermunicipal Development Plan including Gateway Areas
Intermunicipal Development
Plan (IDP) (2016)
The Town of Okotoks and MD of Foothills
engaged in a collaborative planning
process to develop the 2016 IDP, which
in accordance with the Alberta Municipal
Government Act (MGA), provides guidance
on land use decisions within the Plan area
and opportunities for collaboration on
policy direction. The IDP’s area of focus lies
on the edges of Okotoks, dubbed Okotoks
Growth Corridors (OGC), and particularly on
three Gateway Areas which are significant
access points for both Okotoks and Foothills
County. The IDP was developed during
the annexation process between the Town
of Okotoks and the MD of Foothills. Source: Town of Okotoks and MD of Foothills
Relevant Policies and Language • 3.2.2, 3.2.3 & 3.2.4 specific policies uses within MD of Foothills and
regarding each Gateway area, Highway residential uses within the Town
The most pertaining policies in the IDP for
2A, Highway 7 and 338th Highway 2 of Okotoks should be pursued to
this study are related to the Gateway Areas.
Interchange, respectively. Of these, establish a suitable transition.
Preliminary focus areas 1, 2, 5, and 6 are
the following policies are pertinent to
within close proximity to the Gateway Areas.
commercial and industrial development:
• 3.2 Gateway Areas
3.2.2.1 (Highway 2A) MD of
3.2.1.1 Intermunicipal entranceways Foothills and Town of Okotoks
or gateways are important features should cooperate in preparing
for both municipalities. Special design guidelines to ensure public
consideration should be given and private development in the
to the interface in these areas. Gateway Area is of high quality.
Development should be aligned
with the entranceway guidelines 3.2.3.1 (Highway 7) Intermunicipal
of each respective municipality. coordination regarding the
interface between employment
12 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTSMap D.9: Future Land Use Concept Map
2.2.4 Town of Okotoks Figure 2.11: Future land-use map of Okotoks
¯
Municipal Development
Plan (MDP) (2021)
The Town of Okotoks recently approved DRAFT
their new MDP in January 2021, which is
a statutory plan that is the master vision
TOWN OF OKOTOKS MAPPING SERVICES
WARNING: This information is provided on an "as is" basis
and is subject to change without notice. The Town of Okotoks
makes no warranty or representation as to the completeness,
currency or accuracy of this information. Redistribution of this
and guiding policy document for land-
information without the express written permission of the Town
is strictly prohibited. The Town of Okotoks and the Town's of-
ficials, employees and contractors shall not be liable for any
damages or lost profits arising directly or indirectly from the use
of this information. Use of this inform ation is at the user's sole
risk. The provision of this information is not and shall not be
use planning and development within
deemed to be the Town's consent or approval to carry out any
work, construction or development.
the municipality. The MDP is the highest-
level planning document in Okotoks and
will guide long-range planning and the
growth of the Town while assisting staff
and council to make strategic decisions.
Relevant Policies and Language
Principle 3: Equity and Local Economy:
Okotoks is supported by a diverse and
thriving economy, driven by equitable
MAPS
opportunities for all to live, work and
thrive. Equitable economic development
PART D
will allow us to unlock the full potential of
the local economy by dismantling barriers
and expanding opportunities for everyone.
Legend
• 6.1 Facilitate the development of Future Residential Defensive Areas
Residential
employment-rich industrial lands. Commercial/ Future Commercial/ Open Space/
Mixed Use Public Service
Mixed Use
6.1.1 Designate Lands for Downtown Future Employment
Lands
industrially focused uses Industrial Airport 0 0.5 1
Kilometers
a) Designate an adequate supply
Source: Town of Okotoks
of industrially focused lands in 176 Town of Okotoks | Municipal Development Plan
accordance with the Future Land supply of serviced, industrially
Use Concept Map (Map D-9). focused lands to create a
competitive land market and
b) Work with landowners to
encourage business to relocate
maintain an approximate 5-year
and expand in Okotoks.
13 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS• 6.1.1 Designate Lands for b) Foster the creation of an eco- • 6.3 Encourage the development of
industrially focused uses industrial park that co-locates flexible, affordable commercial spaces.
c) Encourage light industrial uses synergistic industrial businesses 6.3.1 Create diverse, flexible
to be integrated with commercial and related services and business spaces.
and other compatible uses while encourages collaboration to manage
environmental and resource issues. a) During the approval process
separating them from adjacent uses for new employment hubs and
and conditions that could undermine • 6.2 Facilitate the development of neighbourhoods, developers must
successful business operations. vibrant and mixed-use centres. create a variety of parcel sizes for
d) Heavy industrial uses 6.2.1 Designate lands for business including some smaller
are not permitted within commercially focused uses. parcels that are appropriately
the Town’s boundary. a) Designate commercially focused scaled for small-businesses.
e) Explore flexible land use lands in accordance with Okotoks’ b) Encourage the development
categories in the Land Use Bylaw Future Growth Strategy. of flexible and affordable
so as to permit a wide range of b) Work with landowners to commercial spaces to support more
light industrial, service, limited maintain an approximate 5-year opportunities for local businesses
retail, and recreational land uses supply of serviced, commercially and jobs, including niche businesses
to locate on industrial lands. focused lands to create a that can support tourism.
f) Industrial park developments competitive land market and d) Develop and encourage others
must have unified design controls. encourage businesses to relocate to develop business incubators
Architectural design guidelines and expand in Okotoks. and shared workspaces including
shall be established by the • 6.2.3 Rethink large-scale Town-developed assets to support
developer, in consultation with commercial centres. smaller businesses, start-ups
the Town, and implemented by the and creative industries.
developer, to encourage a high b) Prohibit development of drive-
thru commercial in neighbourhood f) Explore opportunities for flexible
standard of building quality and live/work housing options in our
compatibility between buildings hubs and neighbourhood
commercial developments. near neighbourhood commercial
in industrial developments. and light industrial areas.
• 6.1.2 Support Innovation and Synergies d) Minimize the visual impact of
large format commercial through
a) Investigate the establishment of architectural form and massing
a Light Industrial Cultural Precinct considerations to break up long
that would support and promote facades and facilitate a more
craft and artisan manufacturing human-scale environment.
and cultural industries.
14 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS• 6.4 Attract institutions and businesses • 8.1 Downtown is distinct and
to create a more sustainable economy. identifiable and reflects the unique
6.4.1 Encourage anchor institutions. culture and history of Okotoks.
a) encourage and facilitate 8.1.2 Strengthen the
development of anchor institutions gateways to downtown.
such as post secondary satellite a) Strengthen the gateways to
campuses, research facilities, downtown through public realm
senior government offices and improvements and encourage the
health care providers to support private sector to develop landmark
a more resilient economy. buildings at key locations.
6.4.2 Facilitate an • 8.2 Create a mix of uses downtown
innovation precinct. that support business success
a) Establish an area for, and and a vibrant public realm.
facilitate development of, an 8.2.1 Invest in Downtown.
Okotoks Innovation Precinct or
c) Encourage new private
Campus that could attract post-
commercial and office development
secondary satellite campuses,
to consider downtown as
research facilities, high tech offices,
a preferred location.
outdoor recreation and sports,
tourism-focused businesses, and
a range of services and housing
geared towards employees...
a) ...The precinct would encourage
business and design innovation
and explore shared resource
use, bi-product synergies and
shared programming. It should be
planned to the highest standards
of environmental excellence and
allow for a creative mix of office,
light industrial, commercial and
complementary residential uses.
The Town could play a lead or
partnership role in its development.
6.4.4 Encourage food and
agriculture enterprise development.
15 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.5 Downtown Okotoks Figure 2.12:
PLAN STUDY Study Area of the Downtown Okotoks Urban Design Master Plan
AREA
Urban Design Master
Plan (UDMP) (2018)
The Downtown Okotoks Urban Design Master
Plan (UDMP) was adopted in 2018 and is a
non-statutory, guiding plan for the design of ELMA ST W
ELMA ST W
the built form, streetscapes and public spaces
ELK ST
My Victory Fredrick Price ELMA ST E
CLARK AVE
Church United MAPLE ST
Memorial Park GLOROND PL
VETERANS WAY
church
within Downtown Okotoks and informs future ELIZ ABETH ST
Rotary
performing
arts centre
Landmark
Site Courts
Provincial
Area redevelopment Plans and land-use
Stephenson
McRAE ST Park
ALBERTA AVE
Town of Mc
Okotoks RA McRAE ST
LINEHAM AVE
POPLAR AVE
ES
NORTHRIDGE DR
municipal
bylaws. See to the right for the study area.
centre T
Canada Triangle
United Post
Church RIVERSIDE DAGGET Park
Willow DR T ST
Plaza Okotoks
Country Ethel Tucker
TE
Inn Former Centennial Park NR
AILW
GA
Creamery Public Agrifarm
AY S
Relevant Policies and Language
Site library T Health
RIVERSIDE Museum Centre
ART
GALLERY
s RA
ILW
AY S
• Goal 2: Establish a warm and RIV
ER
SH
EE
PR
T
contemporary main street.
EP IV
S HE ER
Downtown should be defined by
a fine-grained pattern of shops
that are built with a contemporary
palette of warm natural materials. 0 10 25 50 100 200 300 400 500
• Big Move 5: Sustainable and Source: Town of Okotoks
0 10 25 50 100 200 300 400 500
Mixed-use buildings.
6
The promotion of sustainable, mixed-
use buildings along the main street
will contribute to the town’s image as
a dynamic place. South-facing sloped
roofs will maximize opportunities
for greenhouses and or rainwater
harvesting. Choosing authentic,
warm and natural materials such
as wood, brick and glass will help
develop a contemporary feel along
the main street, simultaneously
complementing the town’s character.
16 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.6 Okotoks Economic 2.2.7 Okotoks Strategic Plan (2018)
Development Strategic The Town of Okotoks Strategic Plan was the community through a set of guiding
Plan (2018 Update) adopted in 2018 and forms the strategic principles and strategic directions. Below
direction for the town from 2018 to is a summary of relevant language for
The Okotoks Economic Development 2021. The Plan outlines focus areas for the Commercial and Industrial Study.
Strategic Plan was updated in 2018 and is
a 5-year plan that provides a broad vision Figure 2.13: Strategic Directions of the Okotoks Strategic Plan
of the community of Okotoks and its growth
and prosperity. It features a set of priorities,
objectives, and actions, that are related
to the Okotoks Commercial and Industrial
Study. A summary of aligned policies follows.
Relevant Policies and Language
• Target Sectors: The 2018 Economic
Development Strategic Plan
has four revised target sectors
for business expansion:
1. Professional, Scientific
& Technical Services
2. Manufacturing
3. Food & Beverage Manufacturing
and Agriculture Services
4. Information, Culture,
Communications & Technology
• Economic Development Priorities
5. Becoming Investment Ready
6. Focusing on Business
Retention and Attraction
7. Regional Economic
Development that Supports
Local Employment Growth
8. Placemaking Source: Town of Okotoks
17 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.2.8 Key Takeaways
The Town of Okotoks has approved The Foothills-Okotoks IDP seeks to mutually The Town’s Strategic Plan has both a guiding
several policies that demonstrate their benefit both municipalities through principle for developing a strong local
objective to grow local employment effective growth corridors and designated economy and a direction to foster economic
opportunities through increasing the Gateway Areas surrounding Okotoks. The vitality. The Okotoks Economic Development
share of non-residential land uses and policies are based on the expectation for Strategic Plan has identified four target
innovative catalysts. The SSRP is the guiding each municipality to refer development sectors for the Town that display the desire
planning document for the Calgary Metro’s proposals to each other and ensure for diversification of employment as the
IGP and Town’s MDP and represents a collaboration items such as development Town grows. Overall, Okotoks’ planning
strong strategic direction into sustainable standards. Although this is yet to occur, the documents reflect sustainable growth of the
economic development, which includes IDP continues to guide the intermunicipal community and region through development
environmental and social sustainability. referral process. In summary, the policies in non-residential land uses and seeks
in the IDP are mostly regulatory in that new to create an enterprising environment
The Calgary Metro IGP strongly promotes developments need to satisfy standards and for business and employment that is
the efficient use of existing regional economic targets of both municipalities. guided by strong planning principles.
infrastructure for new employment areas and
residential developments and encourages The Okotoks MDP is the most relevant policy
sustainable growth in resilient communities. document for this study due to the Plan’s
The IGP serves the region temporarily focus on economic development, specifically
until the Calgary Metro Region Growth and in growing industrial employment lands;
Servicing Plan is complete and approved. developing mixed-use hubs; attracting
Regional priorities may change with the flexible commercial spaces and anchor
adoption of the full Growth Plan. Regarding institutions; and focusing office and
commercial and industrial growth in Okotoks, commercial growth in Downtown. These
the SSRP and IGP have a clear focus on focus areas project a clear path toward
sustainable development and particularly commercial and industrial growth in Okotoks.
the efficient use of existing infrastructure.
18 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.3 Current Land Figure 2.14: Town of Okotoks Districts
Use Patterns
The Town of Okotoks is divided into
three distinct districts for the purpose
of this study. The Sheep River forms
a natural border between the north
and south sides of the Town.
The North segment of Okotoks is delineated
by the Town’s boundaries north of the
Sheep River and around Downtown. It
is predominantly comprised of low and
medium-density residential and public uses
(i.e. community recreation, schools, parks).
The Okotoks Business Park located southeast
of downtown is one of the key industrial
nodes in the Town. Much of the area north
of the Crystal Ridge Golf neighbourhood is
greenfield land, although development has
been recently initiated towards 338 Avenue.
The South segment of Okotoks is delineated
by the Town’s boundaries south of the Downtown Okotoks is an area north of the
Sheep River. There is a wide mix of uses Sheep River anchored by an approximately
on the south side of the Town including 1.5-km east-west corridor of Elizabeth
newer low- and medium-density residential Street/McRae Street/North Railway Street
development, strip commercial, and big Downtown is home to boutique retail, a
box commercial such as Wal-Mart and variety of food & beverage, along with
Costco. Also in the southern segment a mix of institutional and low-density
is the Southbank Business District, a residential uses. As well, Downtown
growing business industrial complex. contains some non-attracting uses, such
as professional and medical offices.
19 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS2.4 Commercial & Figure 2.15: Primary Commercial and Industrial Nodes in Okotoks Industrial Nodes Retail outside of the downtown core is focused almost entirely on the south side of the Town. There are three small commercial nodes north of downtown that provide daily shopping and service needs including grocery. Southridge Drive has two primary commercial nodes comprised of retail power centres, pad retail and strip centres home to national brands. The southeastern commercial node at Highway 2A and 32 Street E is anchored by the big-box retailers of Costco and The Home Depot. Downtown is home to independent and locally-owned retail and food & beverage, although many of the buildings themselves are owned by outside interests. Current industrial/employment clusters in Okotoks are located east of downtown adjacent to the intersection of N Railway Street and 32 Street E (Okotoks Business Park), and in the southeastern area near the intersection of Highway 2A and 32 Street E (Southbank Business District). 20 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
2.5 Area Structure Plans Figure 2.16: Area Structure Plans in the Town of Okotoks The adjoining figure displays current Area Structure Plans of relevance in Okotoks. Built-out Area Structure Plans that have been completed are not included. The Northwest Okotoks ASP includes the new D’Arcy neighbourhood that will have a retail commercial node. The West Okotoks ASP is planned to include both large scale community nodes and smaller scale commercial dispersed between the five neighbourhoods. The first planned neighbourhood in West Okotoks is expected to have a small retail commercial village. The North Point ASP is currently in development and has an expected completion of Fall 2021. The North Point ASP is the largest employment-focused ASP in the Town of Okotoks and will deliver approximately four quarter sections of land for industrial employment uses. 21 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
2.6 SWOT Analysis
Strengths Weaknesses
• Fast growing residential community with strong future • Water supply until an alternative source is realized.
population growth rates. • Small employment base with mostly small-scale
• Excellent perception and high quality of life including employers.
well-regarded schools, big city amenities, bike • Okotoks is viewed as a bedroom community that is great
infrastructure, sense of character, etc. to live in, but not a business-friendly community.
• An abundant open space and regional pathway network • Perceived as difficult to work with from a development
serves as an attractive asset for residents. and permitting standpoint.
• High incomes in Okotoks relative to other jurisdictions • Low levels of historic absorption and leasing for office
and the metro region average. and light industrial.
• Small town feel in a beautiful setting along the Sheep • Lease rates for retail, office, and industrial are only
River creates desirability. slightly lower than Calgary – not a strong competitive
• Highway 2 adjacency and future interchange at 338 advantage.
Avenue. • Commercial uses often look to locate in industrial
• Employment land in Okotoks is relatively affordable to locations due to higher commercial lease rates.
Calgary, although the gap is shrinking. • Difficult to entice businesses to locate in Okotoks rather
• Town is not considered “over-retailed” and has low than South Calgary. Viewed as a riskier development
vacancies for the retail sector. market aside from residential and retail.
• Population growth expected to support new commercial • Largely untested market for larger-scale employment
development including food & beverage and services. uses which creates uncertainty for developers and site
• Active and pedestrian-friendly downtown core with a selectors.
wide array of shops and services. • Town currently does not have large parcel employment
• Festivals throughout the summer draw thousands to the available for end-user tenants.
downtown core.
• Town is ambitious with planning and development and
is in constant contact with the public and stakeholders
regarding the future of the Town.
22 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTSOpportunities Threats
• Opportunity to create a more complete community where • Alberta and Calgary Metro continue to struggle
residents live, work, and play. economically for a longer than anticipated period.
• Become more agile and quicker with the DP process to • Retail sector is transforming due to changing shopping
move development through. patterns and preferences - may not require as much
• New destination retail concepts that provide a unique retail as planned.
differentiator for Okotoks. • Growth of South Calgary and Seton area continues to
• Centre for environmental education, emerging capture employment uses.
environmental, innovation, and tech career development. • Competitive supply of employment lands in surrounding
• Focus on food & beverage and services for retail jurisdictions.
commercial. • Logistics development remains focused on Balzac and
• Leverage the small-town feel of Okotoks to attract Airdrie areas along Hwy 2.
small-scale office tenants in a post CV-19 development • Alberta Transportation continues to setback funding for
environment. the Hwy 2 and 338 Avenue interchange.
• Leverage the potential future interchange at Hwy 2 and • Okotoks is unable to shake the perception as a bedroom
338 Avenue to support employment uses that prefer community to Calgary.
direct highway connectivity to the greater region. • Okotoks continues to be viewed as a “Town” from a
• Targeted employment around certain growth sectors business development perspective.
such as Agribusiness/Agtech, R&D, Clean Energy, Light • Tenants unwilling to pay higher lease rates in mixed-use
Manufacturing, and smaller-scale Logistics. and multi-use developments.
• Capture light industrial uses from Calgary due to • Land prices for employment continue to increase,
property tax increase. reducing the competitive advantage.
• Support home-based businesses to scale-up into leasable • CMRB processes and approvals in the final growth plan
space / co-working space. have potential to delay planning approvals for new ASPs,
• Guide office into future neighborhood mixed-use centers. including those intended for employment growth.
23 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS03 STAKEHOLDER CONSULTATION 24 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS
3.1 Introduction
Stakeholder interviews were conducted
as part of the process to garner an
understanding of the opportunities
and challenges related to retail,
office, and industrial development in
the Town of Okotoks. Stakeholder
interviews were conducted in February
and March 2021. Interviews were
conducted with two primary groups:
1. External Stakeholders –
Landowners, developers with a
vested interest in Okotoks, local
businesses, and commercial/
industrial real estate brokers.
2. Internal Stakeholders – Town
staff from various departments
including Planning, Engineering,
and Economic Development.
Feedback from both the external and
internal stakeholders was recorded by
staff of MXD Development Strategists and
is presented anonymously. This feedback
has been synthesized into six primary
themes presented on the following pages.
25 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTS3.2 Key Themes and Takeaways
Okotoks is a Great Place to Live Need to Overcome Perception
• Unique location along the Sheep River. • Okotoks is still viewed as a bedroom community
• Small town feel with bigger city amenities. where most people commute for work.
• Great bike infrastructure. • Used to be regarded as “not business friendly”,
but this has improved in recent years.
• Great place for small businesses.
• Viewed as a small community. Considered a “Town”.
• Excellent schools for families.
• Does not have access to a large employment base.
• Much less traffic than Calgary.
• Perceived as difficult to work with from a
• Land prices are more affordable than development standpoint, primarily around
Calgary – although that is changing. planning and zoning standards.
• Strong reputation and sense of character.
Competition from Calgary Flexible to Market Realities
• How do you differentiate from South Calgary? • Majority of tenants looking for under 5,000 SF.
• Seton has the South Health Campus • Alberta and Calgary Metro are struggling economically,
and direct access to Hwy 2. will be difficult to attract business in the next five years.
• Less risk from a developer's perspective to • Have to balance placemaking with
build in Seton or Mahogany communities. realities of what the market wants.
• Difficult to entice businesses to come to • Town has lofty goals, market may not respond
Okotoks rather than South Calgary. without strong economic development.
• Hard to lease certain spaces as lease • Must be a little more flexible and focused
rates are similar to Calgary. while still staying progressive.
• Not price competitive to Calgary.
26 TOWN OF OKOTOKS COMMERCIAL AND INDUSTRIAL GROWTH STUDY | MXD DEVELOPMENT STRATEGISTSYou can also read
