A massive $1.5-billion racetrack, gaming, entertainment and retail development planned northeast of Calgary is under fire even though it will be more than a year before the doors open or the horses take to the track.

The Red Deer Chamber of Commerce says it is concerned about the large-scale water servicing that will be required. The municipal district of Rocky View has applied to Alberta Environment to transfer Red Deer River water for the racetrack and mall usage.

The chamber is worried about the potential transfer of water from the Red Deer River sub-basin to the Bow River sub-basin - both of which are part of the South Saskatchewan River basin.

"What's contemplated by this (Rocky View's) application is a sub-basin transfer and so while there is a water transfer involved, there is also a transfer of future development capacity," says Cal Dallas, executive director of the Red Deer Chamber of Commerce.

Illustration courtesy of UHA
Rendering of the proposed United Horsemen of Alberta and Ivanhoe Cambridge near Balzac.

"At some point, when the Red Deer River would be fully allocated and no further development was practical, we would reach that point before it was necessary because of this arrangement."

Demands for water in the Red Deer River basin are already significant, Dallas adds, but with population growth, industrial expansion, and agricultural needs in the Red Deer River basin region, "providing water resources to the Calgary region will limit our region's future development potential."

The Calgary-based United Horsemen of Alberta (UHA) is behind the new thoroughbred and standardbred racing entertainment centre, in conjunction with Montreal-based Ivanhoe Cambridge, a real-estate subsidiary of Caisse de dépôt et placement du Québec.

The group wants to create a new shopping and entertainment experience for western Canadian residents in the municipal district's Balzac area, adjacent to the Queen Elizabeth II Highway.

The UHA plans to look after the racetrack and gaming aspects, while Ivanhoe Cambridge will introduce its Vaughan Mills formula - a hybrid mega-mall in Vaughan, Ont., that puts power centres, regional shopping malls, outlet stores and entertainment venues under one roof.

Rocky View is becoming a hotspot for potential development.

David Kalinchuk, the municipal district's economic development manager, says interest is high for land in the region, including the remaining parcels near the mammoth project.

"In the last two months, we've had site selectors, investors and development consultants come out from Chicago, Houston, Michigan, Georgia and New York state," says Kalinchuk, noting that some of the expressions of interest are for new manufacturing facilities.

The fact that a major player such as Ivanhoe Cambridge is building there certainly doesn't hurt, he adds.

"The Toronto investment community has really started to take notice of the area around Balzac. I've been told we're the 'Mississauga of the West,' " he says.

But the project is also raising a red flag for environmentalists.

"It's a sign that our developments are exceeding the ability of our watersheds to sustain them, so we need to be very cautious about setting that precedent," says Lindsay Telfer, Prairie chapter director of the Sierra Club of Canada.

Tony Blake, president of the Red Deer River Naturalists, says transferring water from one area to another could have an adverse affect on the ecosystem.

"Water is life out there," he says. "It's very important to conserve these areas and messing around with the flow regime is very serious.

"It may seem a like good idea now, but in 10 years or 50 years we have no idea what our (water) flows are going to be and we could be in big trouble. We're foolish if we don't prepare for it."

Originally, a ruling from Alberta Environment was expected in November on Rocky View's request for a licence to take the water and to construct a pipeline, but the comment process was extended because of the number of concerns and questions.

"This is not so much an environmental issue from our perspective," says Jay Litke, the southern regional director for Alberta Environment. "The issue being raised right now is whether a provincial natural resource should be used in Balzac or in Red Deer. The way the legislation is now, we manage within the basin, not within a small region."

However, Litke says he is not dismissing any of the concerns. "It's a public policy question and it's a good question. It's an interesting debate being raised right now."

The Red Deer Chamber's Dallas is pleased with the extra time the chamber has been given to deal with the issue, allowing it to consult further with others who share similar views. Two meetings held in conjunction with the City of Red Deer and Red Deer County in late November drew about 250 people.

The chamber supports the Balzac project and believes it will have a positive impact for the entire region, he adds. "Our sole issue has to do with the water application."

The municipal district is not the bad guy in this issue, notes Rocky View Reeve Albert Schule.

"The water concerns are legitimate," says Schule. "Bringing water out of the Red Deer River wasn't our first choice. It was our fourth choice" with the first being the Bow River in Calgary. However, the city will only service urban areas.

Another choice was to work out a deal with the Rocky View Water Co-op or the hamlet of Langdon, but in both cases no water licences were available.

"That left us with the Kneehill Water Commission (and the Red Deer River) where we are an active member and one of the founding members," says Schule.

"What we are asking for is equivalent to .0001 per cent of the unallocated portion of the river," he adds.

"I'm also hearing that it's not the amount that concerns the people but rather that it might be a start of more to come and I just can't see that being possible.

"It's going to give us what we need for that area and give us time to address what we need to do for the Bow River."

Water Pressure Rocky View's new super regional mall/entertainment/horse racing and gaming centre is under fire for a plan to draw water from the Red Deer River.

* The requested allocation is 5,000 cu. m per day and according to the Municipal District of Rocky View represents a small fraction - just 0.001 percent - of the 550,000 cu. decameters available for allocation in the Red Deer River.

* If the licence is approved, the water would be delivered to the Balzac area, where the mega-mall will be located, via the Kneehill Regional Water Services Commission.

* The MD is amending its Balzac area structure plan to put into place policies for further water conservation to enhance the municipality's current water conservation policy.

* Ivanhoe Cambridge, which will develop the mall portion of the project, says it is working with the MD in order to minimize its water use. It is looking at utilizing drought-tolerant shrubs and native Prairie grasses that can survive periods of drought, as well as rain sensors and low flushing water systems.

(Laura Severs can be reached at laura@businessedge.ca)