Casual Legal: Business Improvement Areas

DISCLAIMER: This article is meant to provide information to Alberta Municipalities members only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated. This content is not intended for the general public.

By Jeskiret Bains
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider

The Municipal Government Act (the “Act”) plays a vital role in fostering economic growth and community enhancement in Alberta. Sections 50 through 53 of the Act empower municipalities to support and promote local business districts through the promotion of Business Improvement Areas (BIAs).

In early 2025 Municipal Affairs conducted an engagement to determine consensus and seek feedback on unproclaimed amendments passed in 2017 and explore the ongoing relevance on the BIA regulation. Results and next steps have not yet been publicly communicated.

What is a BIA?

A BIA is a designated district within a municipality established by bylaw for the purpose of enhancing commercial activity. Under the Act, a BIA may be created to:

• Improve, beautify and maintain property within the area to create an inviting atmosphere for businesses and customers.
• Develop, improve and maintain public parking to support accessibility and convenience.
• Promote the BIA as a business or shopping district, encouraging economic activity and local engagement.

Governance & responsibilities

Each BIA is managed by a board of directors appointed by the municipal council. The board operates as a corporation and is responsible for implementing initiatives that align with the goals of the BIA, including local improvements, marketing campaigns, and business development programs.

Financial accountability

To ensure fiscal responsibility, the Act mandates that BIA boards adhere to approved budgets set by council. If a board member authorizes an expenditure outside the approved budget, they may be held personally liable for the costs. This measure ensures transparency and accountability in the management of public funds.

Why BIAs matter

Business Improvement Areas play a crucial role in revitalizing commercial areas, attracting investment, and fostering a vibrant local economy. By leveraging the Act’s framework, Alberta municipalities can create thriving business districts that benefit businesses, residents, and visitors.

To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or riskcontrol [at] abmunis.ca (email) to connect with Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.