Did you know that northwest Edmonton currently brings in the most annual tax income of any industrial/commercial area in Edmonton outside of Downtown? And it’s not even fully built out yet! That’s a lot of untapped potential just waiting to be unlocked.
In looking at multiple city budgets, it's clear we need a ratio that better balances the non-residential tax-base to address cost of living and can ensure proper services in a growing city. Simply put, more industrial businesses take the pressure off of residential taxes.
That’s why I support the recently presented Industrial Investment Action Plan. This is a 10 year strategy designed to attract investment, create jobs, foster economic growth, and expand Edmonton’s Industrial tax base. Each action supports industrial growth, increases shovel-ready land and improves relative competitiveness within the region. Bringing and keeping businesses inside Edmonton.
However, strategies are not action without the resources to get it done. As such, two incentives have been proposed to start this momentum for the upcoming budget cycle. They balance industry needs with direct benefits and return on upfront investment.
The two programs proposed for funding are:
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The Industrial Infrastructure First Mover Program
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A new incentive to reimburse a single major component of industrial infrastructure to increase shovel ready industrial land and get that industrial tax base that benefits Edmonton sooner rather than later.
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This funding could immediately advance 10 of the 33 industrial projects identified, generating at least $6.7 million uplift in tax revenue annually, starting in 2030.
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The Tax Abatement Program
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A new program that temporarily reduces property taxes by 25% on new industrial buildings for a period of 3 years to attract new investment and accelerate construction.
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Without this incentive, the City runs the risk of losing these businesses to another location, where we wouldn’t benefit at all, this would bring in new business to take the tax burden off of the residential tax base long-term.
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The combined outcome in these programs would see an acceleration of 130 hectares of shovel-ready land development and an increase in land absorption by 15 additional hectares per year, leading to an uplift in taxes of $10.7 million annually.
Edmonton plays a central role in Alberta’s economy, and in turn, industrial development is vital for Edmonton’s long-term growth. I look forward to seeing more growth and development through intentional choices to advance industrial areas over this term.
We’ve already seen the proof of concept work! With business choosing Edmonton to build and expand:
“This is our next big development site, and we’re very excited to get it off the ground. I think the location is second to none in the Edmonton market, and we’re confident it’s going to be very attractive,” Mark Edwards, vice-president of development at Panattoni, said in an interview with RENX …“There are tenants that want to be inside the city of Edmonton limits, and that northwest Edmonton area has proven to be successful for us. We want to continue to grow in that area,” Edwards said.
These two inventive programs would work together to increase that investment and put the city in a better position to incur the maximum benefit for all tax payers. I’m ready to put this plan into action.
Erin.
