Essex exploring Industrial CIP to strengthen position in competitive environment

By: Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press

 

Administration for the Town of Essex presented the findings of the first draft of the Industrial Community Improvement Plan (CIP) Study to members of Essex Council during a special meeting held December 1. 

 

Council received the plan.

 

An implementation plan – coupled with possible funding sources, financial impacts for various scenarios, the return-on-investment opportunities, and resource requirements – will be presented in what Town staff hope will be in the winter of 2026. At that time, Council will be able to make a decision on whether or not to adopt the Industrial CIP. 

 

The study was completed in line with a key goal Council had in its Strategic Plan for the term, which was to leverage the Town’s competitive advantages to promote jobs and economic investment, Lori Chadwick, Director of Development Services, explained. 

 

In her Report to Council, Chadwick highlights the goal of the Industrial CIP is to attract and retain high-quality industrial investment, support the expansion of existing industrial businesses, create good-paying local jobs, strengthen the Town’s industrial tax base, and align with broader economic development strategies.

 

The study proposed a Tiered System Criteria, based on points and a matrix, in order to respond to the small to large businesses, different levels of environmental performance, number of employees, and quality of development. It could offer four different levels of support.

 

The Draft Industrial CIP Program could include:

 

  • A Tax Increment Equivalent Grant that rebates a portion of new taxes on assessment growth for major projects at a tapered rate of 40–100% for five-to-10-years;

 

  • Development Charge (DC) rebates/deferrals that would reduce upfront capital costs for employment generating projects, ranging from a 25% to 100% reduction within the Industrial Areas Town-wide CIPA and a maximum 25% rebate in Industrial Sub-area 1;

 

  • Permit & Application Fee Rebates that could offsets costs for planning and building approvals up to $20,000;

 

  • Feasibility & Design Study Grants to help fund technical studies and site feasibility work up to $20,000.

 

Non-financial incentives could include: streamlining approvals, reducing red tape, and offering programs that support site readiness and servicing. 

 

To create the study, funding was set aside in the 2025 Budget to hire a consultant to assist in reviewing the feasibility of implementing a new CIP to incentivize large-scale, job-creating industrial development. The study was funded from a grant from the Province of Ontario provided through its Rural Ontario Development (ROD) Program.

 

The project was awarded to the Urban Insights team of consultants.

 

Reps from Urban Insights noted the draft Industrial CIP reflects what was heard from businesses, residents, and Town staff, in addition to what was discovered through market analysis.

 

Its reps outlined what tools could help the Town of Essex strengthen its position in a very competitive industrial environment.

 

“Essex has strong bones, based on the community’s location, affordability, and local employers,” Ryan Mounsey, CEO of Urban Insights Inc., said. When his team spoke to local developers and businesses, however, they spoke of barriers that slow or impede investment. That included non-serviced land, high upfront costs, and competing municipalities offering more aggressive incentives.

 

“This is about confidence in businesses [that] want to grow here,” Mounsey. “But they need land that is ready, predictable, and approvals and programs that reduce early risk.”

 

The proposed CIP aims to address barriers.

 

Mounsey added in terms of financial incentives, even with the 80-100% rebates municipalities continue to receive property taxes. It is the difference between existing property tax and future property tax. What the Town would forego is the increase.

 

This is about getting businesses to come to the community. It is not an upfront cost, but a longer-term financial incentive, he added. 

 

Through the process, the team looked at priority areas that could support and encourage future industrial development in Essex, which could include: Maidstone Avenue West Corridor in Essex Centre, Roseborough Road Industrial Park and immediate expansions in Harrow, Walker Road – near the edge of the McGregor settlement corridor, County Road 23/Fairview Avenue axis between Harrow and Kingsville, and previously redesignated industrial lands – Future Inspiration Industrial Park adjacent lands.

 

Deputy Mayor Rob Shepley liked the Tax Increment Equivalent Grant approach, as he sees it as a reward program for the business and the municipality. He was not so in favour of the deferral of the DCs, as that costs taxpayers.

 

Councillor Katie McGuire-Blais shared Shepley’s concerns on the DC portion, and would like to see what the financing model looks like. Perhaps in removing it, the Town would be more in-line with the Province’s direction of doing so.

 

She would like to see a defined timeline for the program to push businesses to come to Essex. She does not want an open-ended program to create urgency.

 

Councillor Kim Verbeek voiced concerns about timelines also, but liked that Council could agree on utilizing the program each year or per Council Term. She would like to see a couple different options in the follow-up report.

 

Mayor Sherry Bondy believes Council needs to determine what its focus will be, as it cannot split staff into two different areas, industrial or ag-tourism, as the latter is offered in the current County Road 50 CIP.