County explores creation of regional industrial park
Area needs to capitalize on spinoffs from new battery plant, mayors say
Spurred by the interest of global companies looking to invest locally to support the Nextstar Energy battery plant supply chain, Essex County's municipalities are collaborating on the hunt for a shared new industrial park.
With initial steps underway, Essex County Warden Hilda Macdonald said administration is pulling together the data required to outline what's required, with a report to county council expected before the beginning of summer.
“The cost of missing this (opportunity) is bigger than the cost of doing this because of the potential return on investment,” Macdonald told the Windsor Star. “We also have to look at the cost of not doing anything.
“There are opportunities for more investment coming — the spinoffs from the battery plant, the new hospital, bridge and suppliers. If we can facilitate that, we should do it.”
In addition to exploring such issues as land costs, ongoing funding, governance structure, possible senior government support and questions on infrastructure connections, the actual location of such a park will be a significant point of discussion.
Though no sites have been identified, Macdonald said the Highway 401 corridor is an obvious location based on the high level of interest from companies for easy access to transportation infrastructure. She noted there is industrial property in Amherstburg at the former Allied Chemical site and there are possibilities in the heart of the county.
“This will have to be done in phases because of the cost,” said Macdonald, who is also the mayor of Leamington. “I can see the possibility of having more than one site.”
“The key thing is to get this plan moving forward, so it can be completed within the life of this council term (which ends in 2026), or that it's so far advanced that it can't be derailed.”
Macdonald feels the financial circumstances, opportunities and timeline pressures have changed the political landscape, creating optimism and the political will to push the regional industrial park concept over the finish line.
“The time is just right, the stars have aligned,” Macdonald said.
“What we're trying to do is create conditions where those that want to move forward can and others who aren't interested can opt out.
“I'm very optimistic something is going to get done.”
Contacted by the Windsor Star, the mayors of Leamington, Kingsville, Lakeshore, Tecumseh and Amherstburg all expressed support for the concept.
Lasalle Mayor Crystal Meloche wasn't available for comment while Essex Mayor Sherry Bondy said Essex would focus on filling its own industrial parks in the short-term.
Lakeshore Mayor Tracey Bailey plans on giving the project a push by introducing a notice of motion — if there isn't one on the agenda soon — to formally define county council's desires and to direct administration to fully engage with the seven municipalities.
Bailey said Lakeshore currently has 60 acres of serviced industrial land in the Patillo Road area, but that won't last long given the current demand.
“The biggest hurdle to this is ourselves, the seven municipalities,” Bailey said. “The story has to be outlined in terms of the benefits to your community.
“There really is no other option available. The costs have become so high, the only way to develop industrial land is to use land banks. “We have to do this as a region.” Tecumseh Mayor Gary Mcnamara said the framework of how to do it already exists locally in Essex Power Corporation.
Essex Power is wholly owned by the municipalities of Amherstburg, Leamington, Lasalle and Tecumseh. The four communities have shared millions of dollars in dividends from the company since it was created 22 years ago.
“Kind of establish a municipal Crown corporation, then there has to be a buy-in from all the participants,” said Mcnamara.
Mcnamara supports Macdonald's desire to have a report come to county council before summer.
“It's been something in the back of my mind for the past 20 years,” Mcnamara said. “I think it's critically important for us to look at the future of the region.
“For us here in the region, we're so well placed. We're the nexus of North America.”
Amherstburg Mayor Michael Prue is also eager to dig deeper into the details of a regional industrial park or parks. With about 1,000 acres of industrial land, Amherstburg has the largest collection of serviced or easily serviceable space available in Essex County.
About 600 acres of that space is represented by the former Allied Chemical lands, which is controlled by the Honeywell corporation. About half of the Allied site has already been mediated and is ready for future industrial use.
The town also has 100 acres along Alma Street and another 300 acres further out in the county along Howard Avenue.
“I'm excited by the possibilities,” said Prue, who added the town is getting a lot of inquiries from large companies. “The challenge is always money.
“To take, say $5 million, to put into land speculation for development with the hope of getting something back in 10 to 15 years isn't going to wash. However, if we do something like we do with ERCA and other organizations, where we put in a certain amount each year, that's doable.
“It's a new concept I'd like to explore.”
Kingsville Mayor Dennis Rogers said the concept fits into his town's recently completed strategic plan that looks to rebalance the mix of the municipality's tax revenue streams.
“The timing for this is right,” Rogers said.
“Having a strong industrial and commercial base alleviates a lot of pressure on our residential taxpayers. Our industrial tax rate is almost twice what the residential is, so you get nearly twice as much revenue for the same footprint.
“The mixed model is the goal. You want to have a good mix of commercial, industrial and residential.”
Participating in a regional industrial land bank, said Rogers, has benefits for all communities regardless of where it is and the amount of existing industrial development they have in their own municipalities.
“There's a lot of wins in this model,” Rogers said.
Essex Mayor Bondy also likes the concept but said the timing isn't right for her town.
“At this point, Essex wants to infill its own industrial parks,” Bondy said.
“We have an industrial park in Harrow that still has vacant land and we're developing a new industrial park in Essex. It's just working on stormwater management, so I'm hesitant to jump into something else before we fill these places.”
Macdonald said the big hurdle ahead is timing.
Private business moves much faster than government, so there's an urgency Macdonald thinks might provide a positive impetus to move the project forward quicker.
In addition, Macdonald said the county must include the City of Windsor in these discussions because of the likely need to have the city's infrastructure services extended into new areas.
“We're having conversations with the city. Union Water is having conversations with the city. We have a relationship between Essex Power and Enwin,” Macdonald said.
“To develop this area, we have to have a good relationship with the city. It's mutually beneficial.”