HEAD OFFICE HEADHUNTING
City aims to lure 70 new companies
Calgary Economic Development hopes to attract 70 head offices to the city in the next three years as it embarks on a $3-million initiative to bring in more businesses.
While the recession continues to increase local unemployment and drive the downtown office vacancy rate above 20 per cent, the development agency is receiving additional money from governments to expand its outreach to companies looking for a new home.
“Historically during a downturn, that’s when we see headquarter growth” Calgary Economic Development (CED) chief executive Mary Moran said Tuesday.
“If you think back to 2014, there wasn’t a lot in the pipeline. Right now, there is a lot in the pipeline and so we have a lot of people kicking tires.”
The province is providing $2 million to CED over two years, while the federal government will contribute $1 million.
Moran said the money won’t be used for tax incentives to attract head offices, but will provide more resources to market and promote the city, conduct research, take part in international trade missions and generate new leads for future economic activity.
The authority has committed to attract 70 companies to the city over the next three years. It’s targeting branch offices and corporate headquarters in areas such as cleanenergy technology, transportation, agri-business, financial services and tourism.
Calgary has seen the number of larger head offices dip to 134 from 150 since the oil price rout began in 2014.
Officials note falling rents, more available workers, international flight connections and low taxes in the city will help lure firms seeking to relocate.
“Now is the time to find creative ways to capitalize on these advantages,” said Economic Development and Trade Minister Deron Bilous.
But Wildrose MLA Prasad Panda said the NDP government’s policies, such as raising business taxes and introducing a new carbon tax, are damaging investor confidence and aren’t helping bring in new players to the province.