Anger spikes over industrial park decision

Despite impassioned arguments from some councillors, the city has decided that part of the cost to upgrade a major industrial park in Sudbury will be shared by the 40 business owners with property there.

The decision prompted Ward 8 Coun. Fabio Belli to leave the council table in protest; one business owner from the park was so angry after the meeting, he simply said he “shouldn’t talk to the media” and stormed off.

The current state of infrastructure is so poor at the Lasalle Elisabella Industrial Park that businesses there can’t expand or use all of their property.

Concerns centre on poor water pressure and constant sewer smell, which not only make working there unpleasant, but also limits growth. Hundreds of new jobs would be created if the $8.8-million improvements the city is planning go ahead, the businesses argue.

However, the city has already committed to paying $4.7 million of the project’s cost. Under the plan approved June 26, the 40 businesses in the area would share $663,000 of the upgrades, with the rest being paid when building permits are issued for new development.

That plan, option 2, was one of four options councillors considered. One plan would have the business owners pay $3.6 million as their share of the upgrades (option 1), while options 3 and 4 would have seen the city pay the full cost, which would then be recovered either from provincial grants and new development, or just new development.

The problem with the latter two options is that city taxpayers would be on the hook for the full cost, some councillors said, and getting the money back would be dependent on new development. While it would be nice to pay the full cost, Ward 11 Coun. Terry Kett said it was too expensive.

“The only one that works is option 2,” Kett said. “If we could afford it, I would love option 4.”

Ward 6 Coun. Andre Rivest agreed, saying it’s too risky to rely on future development to pay for upgrades that will benefit existing businesses.

“We’re not a bank,” Rivest said. “I really don’t believe the city should be taking all the risks. We just don’t know” when they would get the money back.

But Belli said council was wasting its time debating any option that would have existing businesses pay part of the cost of upgrades, since approval of two-thirds of the companies is required to implement the plan.

“The stakeholders won’t go along with any options that involve them having to pay,” Belli said.

It’s such a sensitive issue, Belli said, because infrastructure has been lacking at the park for decades. In effect, businesses have been paying taxes for services they don’t receive, and are outraged that council would try and make them pay for upgrades they see as the city’s responsibility.

Ward 7 Coun. Dave Kilgour said it wouldn’t be the first time the city has fronted money for a major project because of the positive effect it would have on Sudbury.

“We gave $20 million to the hospital,” Kilgour said. “We gave $10 million to the school of architecture … We had faith in those projects.”

It’s still a risk, he conceded, but the fact is “these businesses are ready to build.”

And if councillors really believe that we are headed for an economic boom, the city has to be ready for new growth, he said.

 
“That’s the question you have to ask yourself,” he said. “Do you have faith in our economy?”

Mayor Marianne Matichuk went further, saying she’s willing to borrow money if necessary to help Greater Sudbury position itself to benefit from the growth everyone knows is coming.

“We need to be open for business,” she said. “We need to have (serviced) land available. If we don’t do this, we’re going to be shooting ourselves in the foot.

“I’m not opposed to borrowing to do this. At the end of the day, we’re going to get our money back.”

Belli pointed out that Sudbury’s industrial property taxes are already the highest in Ontario, something that already discourages investment and growth.

Despite that fact, businesses at Elisabella are ready to expand.

“Every day that goes by is lost revenue for these businesses,” he said. “We might be forcing some of these businesses out of the community.”

After the decision, the CEO of the Greater Sudbury Chamber of Commerce said there has been plenty of talk of businesses at Elisabella leaving.

She said municipalities in northeastern Ontario are looking to poach the businesses, and are offering serviced land and much lower operating costs to lure them away.

Posted by Arron Pickard