Investing In Our Industrial Sector
Industrial Investment Action Plan 2024
I have been calling for an ambitious plan to grow our industrial tax-base since being elected in 2021.
Industrial development is critical for Edmonton’s economic growth. Our industrial sector creates jobs, attracts investment, bolsters our non-residential tax base and is an essential part of supporting the City of Edmonton’s fiscal sustainability.
Edmonton has been seeing a decline in our non-residential tax base which includes industrial, office, retail, hotel and land. Edmonton represented 72% of the metropolitan region’s industrial base in 2008, but only 60% in 2022. Despite its importance, Edmonton’s industrial growth has not kept pace with the growth of the region — this compromises our fiscal sustainability, and puts more tax burden on existing businesses and property owners.
In 2010, Edmonton’s industrial tax rate was 1.5x the average rate of surrounding municipalities; by 2022, Edmonton’s rate was 2.3x the region’s average rate. This trend cannot keep continuing — that’s why I made increasing our industrial base a cornerstone of my platform.
Accelerating industrial development is critical for ensuring economic resiliency for our City, and ultimately, a stronger Edmonton supports a stronger region. That’s our main goal.
Industrial Investment Action Plan
This week, Council received the 2024 Industrial Investment Action Plan (IIAP), which seeks to increase growth in Edmonton’s industrial sector.
The IIAP introduces a new approach to industrial development. It pushes us to stay focused on our natural strengths, aggressively prioritize the development of our shovel-ready lands, and focus on key target sectors that will yield the greatest impact.
We’re shifting away from less effective ventures to concentrate our energy, time, and resources on sectors that make the most sense for our City, and in turn, our region. Sectors like advanced manufacturing, artificial intelligence and technology, energy and clean-tech, food processing, health and life sciences, and transportation and logistics.
This focused strategy will enable us to support more business clusters, better attract and retain investment, efficiently utilize our infrastructure, and make more strategic investment decisions. This supports our City’s revenue generation in a significant way, and ultimately, reduces the burden on property tax payers.
Key Actions of the Plan
The IIAP outlines nine key actions to accelerate industrial development:
- Market and promote the industrial advantages of Edmonton.
- Establish and maintain an industrial infrastructure prioritization tool.
- Increase efficiency and improve business processes for industrial development.
- Develop a guiding framework for flexibility in the City’s design standards.
- Work with Indigenous Communities, organizations and businesses to identify barriers and advance Indigenous industrial economic development in Edmonton.
- Remove barriers for ethnocultural and all equity deserving communities for participating in Edmonton’s industrial development.
- Continue to collaborate with regional partners, Indigenous Communities and investment groups, and regional economic development agencies on economic development activities.
- Identify and tailor programs and incentives for target sectors that will provide a strong return to the City’s tax base and advance strategic objectives.
- Monitor progress and results of the Industrial Investment Action Plan.
These actions, paired with a targeted focus on the six key sectors, will position us to be a leader in industrial development. The growth of these sectors will enable us to offer more competitive tax rates, better services, heightened innovation, and improve the fiscal sustainability of our City.
I am also pleased to see that the Industrial Investment Action Plan is focused on meeting with stakeholders with a collaborative and shovel ready approach. This consultation will ensure the City walks in lockstep with our partners, and that we can accelerate industrial growth in a quick and strategic way.
We Need Action Now.
Edmonton has huge potential when it comes to industrial development. We are young, educated and growing, with access to the best institutions, the brightest minds, and the most innovative of sectors.
We are also fortunate to have a number of businesses, economic development organizations and a City Council and Administration that are committed to the holistic growth of the region.
City Administration’s immediate next steps include streamlining approval processes for industrial investment, reviewing area structure plans to ensure our land is best optimized for industrial growth, pursuing collaborative economic development with the region, identifying strategic growth areas for the 6 key sectors, and working with Indigenous and diverse communities to grow their involvement in industrial development. This work will be done in partnership with our economic development organizations, regional partners, and key stakeholders.
We’re expecting a report back over the next six months with a progress update on these actions, as well as a deeper discussion on where the City’s resources need to be targeted or redeployed in order to accelerate industrial growth. I am eagerly looking forward to this discussion, and continuing to honour my platform commitment of growing our industrial tax base in this City.
