Property taxes for 2022 on the Carnival property alone are listed by realtor Colliers at $74,906.
“The Carnival building is located at the gateway to Capstone and we believe there is a better use for it now. It’s time to make a move for our own good, but also for Capstone,” says Ramji. “When we settled, here were the civic yards and the bus yards. It was mainly light industrial. But we’ve always been a supporter of the entirety of Capstone and the city’s plans for it even back then.”
So what does this mean for the burgeoning Capstone, which the borough has spent tons of dollars and days promoting as Red Deer’s next big thing?
As of today, Carnival sits at the entrance to Capstone and away from where housing and many other businesses are slated to one day be.
John Sennema, the City of Red Deer’s Land and Economic Development Manager, says that ideally, the theater would not go away, but acknowledges that Ramji is within his rights to sell, especially if it means upgrading his business.
Sennema agrees that Ramji has been a big supporter of Capstone and although he will be taking his business elsewhere, the vision for Capstone does not change.
“From a planning perspective, it’s in a very flexible area. We have looked at different concepts with Berry Architecture, including how the current structure of the cinema can be revised to accommodate certain things,” says Sennema. “We’ve known about this for a long time, and while it’s not our preference to see Carnival go, it’s an opportunity to put it to better and better use in that country.”
Collierswhich is handling the sale of the 2.32-acre property, lists grocery, multi-family, hotel, mixed-use commercial/office with residential, health and medical services and restaurants as viable uses.
In October 2020, the city announced a $36 million multifamily residential development will be located on the parcel directly west of Carnival Cinemas. The announced developer was Brad Remington Homes, with 180 apartment units the main selling point.
The city noted at the time that it represented the first private equity investment in Capstone.
However, Sennema says, the deal with Remington expired in the summer of 2021 when there weren’t enough pre-sales. Sennema believes that cost uncertainty during the pandemic really put people off buying things like housing.
“Once a buyer comes in for the Carnival property, we will try to articulate our vision to them. We’ve tried hard to socialize our vision for Capstone over the past two years, but the pandemic slowed it down just a little bit,” he explains. “We hope that whoever buys the Carnival property will buy into that vision and see the opportunity which is there with a dense community.”
Sennema claims there is a lot of interest in Capstone as The City looks to fill it over the next 25-30 years.
“Coming out of COVID, we’re looking at the ability to activate that Canada 150 Square and adjacent space. Capstone is a place where we want people to live, and it’s a little different than what Red Deerians are used to, but I think that by activating that space, people are starting to discover it and enjoy it,” Sennema says. “Now we’re in able to do some of the important things that we just couldn’t do when our hands were tied by COVID; things like trying to sell the condos.”
So where will customers find Carnival next?
Ramji says the theatre, which usually screens films on their second run, is and will continue to be a destination.
“We attract from the city and out of the city. I hope the patronage will continue. We have been grateful to the city and all of our customers and want to continue serving the community,” says Ramji.
“Carnival in no way closes. We will continue to operate until we make a move only after a buyer is identified. At the moment, we are not aware of where we will go.”
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