Development permit

A buyer who wants to open, change or expand a business in an Alberta municipality may meet this term when zoning approval is discussed. The permit is issued by the municipality’s development authority under its own bylaw, so check the bylaw of the municipality where the premises sit. Start with the licences and permits in an Alberta business sale guide.

What Alberta’s Act says

The Municipal Government Act, Part 17, defines a development permit as a document issued under a land use bylaw that authorizes a development. Section 640(1) says every municipality must pass a land use bylaw. Section 683 says that, except as otherwise provided in a land use bylaw, a person may not commence any development unless a development permit has been issued for it under the bylaw; s.618 lists developments to which Part 17 does not apply. Section 616 includes a change of use of land or a building in the meaning of development.

Edmonton and Calgary

Edmonton says a development permit is the document that gives City confirmation that your business can operate in your location, and that a business whose activity is a listed permitted use still applies for one. It also notes that a conditional lease can make the lease non-binding until zoning approval is obtained. See also zoning compliance letter. Calgary’s Land Use Bylaw 1P2007 sets the process for deciding development permit applications. This entry covers Alberta only; check the rules where the business is.

What to ask

• Which development permit covers the current use, and what conditions it carries.
• Whether the buyer’s planned use is a change of use under the municipality’s bylaw.
• Whether the lease can be made conditional on zoning approval.