Red Deer Plans Social Services Campus at Former Peavey Mart Site

The former head office of Peavey Industries in Red Deer is being considered for a new social services campus aimed at providing comprehensive support for individuals experiencing homelessness. The initiative, led by the Red Deer Homeless Foundation, is part of a project named Project Nexus, which envisions a coordinated space for housing, health, mental health, addiction recovery, and social services.

City council members will review a rezoning bylaw for the site located at 7740 40th Ave in Riverside Industrial Park. This facility, which includes approximately 202,000 square feet of space, has been vacant since early 2025, when Peavey Mart stores closed. Although the company is in the process of reopening select locations, the former head office remains unused.

The proposal for a permanent emergency shelter has been discussed for several years, with city officials and local agencies advocating for a site that integrates various support services. In 2019, the province allocated $7 million for the development of an emergency shelter, but finding a permanent location has faced numerous delays.

In order to transform the former Peavey site into a social services campus, the city must rezone the property from Industrial to Direct Control. If the council approves the first reading, a public hearing is anticipated for February 25. The city has noted the community’s heightened interest in establishing a shelter, leading to an expedited public notification process regarding the rezoning proposal.

According to Darcy Mykytyshyn, CEO of the Red Deer Homeless Foundation, collaborative efforts are underway to engage various agencies serving the local homeless population. “We are inviting them to consider bringing their services together at one location to make it effective for the people experiencing homelessness to get the support that they need,” Mykytyshyn stated.

He emphasized the belief that an integrated approach is crucial for effectively addressing homelessness. “We feel that having a centralized model where all services are accessible will benefit both individuals in need and the agencies providing support,” he added.

The foundation has received positive feedback from the community since the announcement of the rezoning application. Current estimates suggest there are approximately 750 individuals experiencing homelessness in Red Deer, with many more at risk. “Our goal is to develop a more comprehensive strategy to provide the necessary support. We need a space where people can access the services they require,” said Mykytyshyn.

Funding for the acquisition of the former Peavey site has been secured through donations. Discussions with provincial authorities are ongoing to determine whether the initial $7 million funding can be utilized for this new project.

Locating a social services campus in an industrial zone may raise concerns about accessibility, particularly in relation to the downtown area, where many outreach agencies currently operate. The foundation acknowledges that perceptions of distance could hinder the project’s effectiveness. “The first priority of Project Nexus is to work closely with agencies and partners to create a compelling value proposition that brings services onto the campus as quickly as possible,” states the foundation’s overview of the initiative.

Research indicates that communities often struggle when services are spread out, leading to inefficiencies in delivering support. Mykytyshyn pointed to successful models in cities like Edmonton, San Antonio, Houston, and Atlanta, which have shown significant reductions in visible homelessness—between 60% and 80%—through the implementation of one-stop service models.

As the process moves forward, the Red Deer Homeless Foundation remains focused on fostering collaboration among local agencies and soliciting community input to refine their vision for Project Nexus. The foundation aims to ensure that the proposed campus effectively addresses the needs of those experiencing homelessness in Red Deer.