New city industrial fund to pay back developers

Edmonton’s share of the region’s industrial pie is shrinking, warned city officials as they proposed a set of new strategies Tuesday.

Edmonton has roughly 3,800 hectares of vacant industrial land; much of it sits untouched because the costs of roads and sewers are too high for the initial developer. The first developer is required to overbuild roads and sewers to accommodate the next in line.

Normally, they’re reimbursed when the next developer starts. But that’s been contentious since nearly 10 per cent of second and third developers have cancelled their projects in the last five years rather than fork over the requested cash.

Now city officials want to rebate the developer with their own taxes. Half of the tax increase for the whole area will go to paying back the developer’s debt until it’s gone.

“Our competitive strategy is never going to be cost. It’s location, location, location,” said Mayor Don Iveson.

It’s fair to the rest of the taxpayers, he said, because “if you didn’t have the development, you wouldn’t have the tax levy.”

The rest of the industrial strategy calls for officials to identify other barriers to development, bringing those capital projects forward for the city to fund. They’ll also review the design requirements for industrial areas, which are often more stringent than in other municipalities in the region. Proposals will be developed further before returning to council for approval.

Chris Davis of the Urban Development Institute said his members are in favour of the plan, especially the new fund and a commitment to review the industrial design standards.