The City of Calgary could invest directly in new industrial developments as the local market faces increased competition from neighbouring rivals.

The city’s infrastructure and planning committee has approved an administration report that calls for direct municipal investments as part of a broader industrial development incentives program within a new industrial action plan.

“Currently, costs to develop and operate industrial within Calgary are higher compared to adjacent municipalities, creating a barrier to industrial land
development,” states the report. “Developing financial tools to incentivize development can help close this gap.”

Part of the city’s proposed long-term growth plan update, the incentives must be approved by city council.

However, several city councillors and Mayor Jyoti Gondek sit on the infrastructure and planning committee, indicating that the action plan has a strong chance of receiving council approval.

The report states that the city can leverage such strengths as Calgary’s proximity of jobs to a talent and labour pool, public transit and robust power and water services.

Administrators contend that enabling industrial growth within Calgary will complement future industrial market moves, including the rail-service-focused Prairie Economic Gateway program.

Industrial development incentives could also enable strategic land-use conversions, while ensuring a long-term supply of industrial land, according to the city’s administration. Potential conversions include residential and mixed-use projects that could create 14,000 new homes.

The industrial action plan includes right-sizing the industrial land base, investing in infrastructure and servicing and increasing development attractiveness through the proposed development-incentive program. The development-attractiveness efforts would industrial development non-residential tax incentives, pursuing funds from other governments, aligning with Prairie Economic Gateway and exploring ways to maintain a streamlined approvals process.

Prairie Economic Gateway is a collaboration between Calgary and Rocky View County designed to develop a major inland logistics hub. Calgary has lost many industrial investment and development opportunities to Rock View Country, with many projects being developed in the nearby community of Balzac, Alta.

Rocky View County is considered part of the Calgary industrial market.

More later …

Photo: City of Calgary