Update given on Howard Industrial Lands

Amherstburg town council has received an update on the Howard Industrial Park and the studies that go along with it.

Paul Blais from Deloitte and Dean Rice from Dillon Consulting attended the Oct. 13 town council meeting to update the current council on the progress. The consultants were reporting on their phase one findings.

Deputy CAO/director of development services Melissa Osborne told town council and the public that council has supported grant applications for work on the plans to develop the land. Major plans were the Howard secondary plan and the future expansion of the McGregor sewage system.

Osborne noted the town’s $838,000 grant that was received from the Province of Ontario’s Trade Impacted Communities Program.

The current study by Deloitte and Dillon focuses on infrastructure and economic development strategies.

The Howard Industrial Park is bordered by Howard Ave., County Road 8, Concession 8 North and North Side Road.

Blais outlined the project and looks at what the demand and supply potential is. He said the first phase “brought together five integrated workstreams to build one evidence base for future decisions.” Those included land availability and inventory, market intelligence and sector identification, readiness and site servicing, a supply chain study and broad engagement.

The 700-acre parcel would be ready now for businesses such as logistics, dry food processing, co-packing, and light fabrication based on the current level of servicing. 

Four “tier one” sectors fit the current and near-term servicing including transportation, freight and logistics, automotive parts and components, food and beverage processing and industrial machinery and equipment.

As it stands now, Rice commented that over 40 hectares have “high readiness” for development, with 152.50 hectares having moderate readiness and over 49 hectares with low readiness.

A second tier of could include EV supply chain, wet food and beverage, defense/dual-use and clean energy, though those would require full sanitary servicing and confirmed power capacity.

Known Tier 1 estimated servicing costs are projected to total nearly $64 million with over $20 million needed for the expansion of the McGregor sewage treatment facility, Rice noted.

Blais said there are six conclusions and “real opportunities” for the Howard Industrial Park that are paced by infrastructure. Those include strong market fundamentals, infrastructure seeing the pace of the development, getting the land development-ready, phasing in growth by sector, strengthening the regional supply chains to “capture supply chain leakages” and workforce shaping attraction.

Goals in the next phase include an economic development and diversification strategy, a marketing and advertising plan and an implementation plan.

Councillor Linden Crain asked if there are other lands in Windsor-Essex County that are similar to the Howard Industrial Park. Rice noted lands in the Town of Essex and some near Windsor Airport.

Crain also wanted to know if future costs will be part of the next council’s capital budget, with Osborne stating the next mayor would provide direction as legislation says budgets are “strong mayor’s budgets.” She added there are further details provided as part of the second phase so that town knows how aggressively to pursue financial investment.

“We’re all competing for industrial. Everyone knows that’s where the bread and butter is for tax base,” said Councillor Peter Courtney. “This just seems like an infrastructural nightmare because it kind of out in no man’s land. It’s ideal because no one’s got it in their backyard but now it’s getting trunking infrastructure with the McGregor lagoons.”

Courtney asked how a small town like Amherstburg as to what comes next, noting the sewage and hydro needs. Blais said for larger scale development, there needs to be a motivated developer to help assemble properties.

“The challenge is significant in terms of future servicing,” said Blais. “It all really will depend on the aspirations that the town has of what types of investment you’d like to see the Howard Industrial Park attract.”

Deputy Mayor Chris Gibb said he understood the issue to be with the level one development and see what fits in there now. Going forward, as things grow, the town can look for infrastructure to get more value out of the land.

Gibb asked if the documentation the consultants provided can be brought to upper levels of government to see if they can assist.

Blais said this study and other documents are a “leverage case” and can present opportunities to advocate to upper tiers of government. Osborne said the town is already pursuing grant opportunities under the next phase of the development.

Councillor Diane Pouget asked about how much land is shovel-ready. Rice said some lands are ready and could be considered shovel-ready.

The town doesn’t own the lands, pointed out Councillor Don McArthur, and the study identifies fragmented land ownership as a barrier to develop.

 “How much of what we want to do there, expand Amherstburg’s industrial base, is dependent on people selling their properties or mixing their properties together?”

McArthur said the town seems to be at the will of forces beyond its control.

Blais added the town is relying on private interests to move the town’s agenda forward and “they don’t always align.” He said he doesn’t know of any immediate interests but there is motivation to development.

“There’s no question the fragmentation of the property ownership creates challenges to lands for specific types of investment,” said Blais. 

Blais said there is caution that early development shouldn’t impede future potential. 

“It’s complicated,” he acknowledged.

Blais added there are some municipalities that own industrial land but others that do it successfully relying on the private sector.

Mayor Michael Prue said the town and County of Essex have been told by the Independent Electricity System Operator (IESO) that the area is not likely going to get sufficient electricity additions for about eight years. He asked if Amherstburg doesn’t get more electricity, whether wind, solar or natural gas options should be sought so developers don’t have to wait eight years.

Rice said that was considered and is viable, but the challenge on alternative energy proposals is property. He said through discussions with Hydro One, there is 10-megawatts of peak capacity available to the Howard Industrial Park.

“That’s not committed. It’s first come, first served,” he said.

Rice added the hydro company wants to see actual demand before they will look at expansion. There is potential to expand, he indicated.

Update given on Howard Industrial Lands

By Ron Giofu