“These larger redevelopment sites give us an opportunity to provide that mixed-use living environment where you can meet your daily needs, and entertainment, and ability to do things really closely, give you more time back in your day.”
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A new grocery store is on the way to southeast Edmonton, and two 22-storey rental apartment buildings are set to begin construction next year at Mill Woods Town Centre.
The property owner told Postmedia a new tenant recently signed a lease to set up a grocery store at the mall to replace the Co-Op that closed early 2023. The new store is expected to open August 2025 — the name of the company isn’t yet public. Safeway previously had a grocery store in that location.
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Two 22-storey residential towers are also set to begin construction on the site as early as January next year, in the first of several phases of redevelopment. Part of the parking lot, in the north-central area near the Valley Line LRT stop, will be transformed into 550 rental apartments of varying sizes across the two connected towers. There will be studios, one-, two-, and three-bedroom apartments, plus some townhomes, once complete. Owner Maclab Development Group is finalizing the permitting, costing and financing.
Bill Blais, Maclab’s president and CEO, said a grocery store is a great amenity for people in the neighbourhood and anyone who visits the mall.
“It’s a basic need, and we’re happy that someone’s going to be there and operating and able to meet that.”
As well, building new rental homes near the mall and LRT stop will create a hub where people can access many things they want and need nearby to cut down on long driving commutes, he said.
“I think people are interested in that and craving that,” he said. “These larger redevelopment sites give us an opportunity to provide that mixed-use living environment where you can meet your daily needs, and entertainment, and ability to do things really closely, give you more time back in your day.
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“It’s really about building a strong community.”
With 88 per cent support, bringing in a grocery store was the No. 1 item requested by members of the public who participated in the developers’ most recent engagement session on the future of Mill Woods Town Centre.
Family-friendly play spaces, and senior-oriented housing, were also popular requests.
As well, 65 per cent of respondents were concerned about a lack of housing affordability around the mall.
Urban and transit hub
Mill Woods Town Centre has been eyed as an urban centre since the 1970s. There have been various visions for more housing density with a transit hub recommended by planners, and approved by city council, over the years. Maclab Development Group bought the site in 2022.
Blais, during a tour of potential areas for redevelopment along the Valley Line hosted by BILD Edmonton Metro this week, told participants the Valley Line LRT station was one reason the company bought the land in December 2022. Eventually, they hope to build 6,000 to 8,000 homes on the 22-hectare site with new retail spaces — a plan that will likely take decades to bring to life.
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“It has a bunch of underutilized or not-utilized parking areas, and we will start with that,” he said.
The increase in rental prices in Edmonton was also attractive to Maclab.
Blais told the group rents in Edmonton are “moving in the right direction.” He said they have been able to charge higher rents than expected at a different housing project in the Garneau neighbourhood.
Rentals.ca’s most recent national rent report shows Edmonton was the only Canadian city where rents went up in August — nine per cent year-over-year.
Speaking to Postmedia, Blais said he wants to include housing units that rent at various price points.
“The biggest thing that we do is increase the supply of housing and so, just by that nature, it does help to make everything a bit more affordable in a sense.”
The company is applying for federal housing grants in hopes they can include some affordable units in two new towers under construction next year.
When the previous land owner, a real estate investment trust (REIT) from Eastern Canada, put the land up for sale, Edmonton-based Maclab saw an opportunity for someone local to step in and build some more density with the LRT station opening soon, Blais said.
“It kind of felt like the property needed somebody local who maybe had a better understanding of the market conditions,” he said. “Even though the plans for more housing on the site has been in place for a long time, we’ve only owned this for less than two years, and so are working hard to get to the point where we can deliver on that housing promise.”
Building more housing in the southwest corner of the parking lot is next phase after the 22-storey towers are complete.
lboothby@postmedia.com
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