THUNDER BAY – The City of Thunder Bay is moving forward with an ambitious strategy to stimulate economic development and attract new businesses, with a comprehensive Growth Community Improvement Plan (CIP) set for City Council consideration on June 16, 2025. The plan aims to transform Thunder Bay’s approach to fostering investment and innovation, making the city a more attractive destination for development.
Detailed in Corporate Report 190-2025-Growth-Development Services-Planning Services, the new CIP is designed to significantly increase capital investment, employment, and the city’s tax assessment by drawing in industrial and commercial projects. This initiative directly aligns with the “Growth Pillar” of the City of Thunder Bay’s 2023-2027 Strategic Plan. A notable competitive advantage for businesses considering Thunder Bay is that the city does not impose development charges, a key benefit for business expansion.
The Growth CIP proposes the immediate activation of five key financial incentive programs, available city-wide to eligible applicants:
- Brownfield Rehabilitation Grant: Provides up to $50,000 to cover 25% of eligible costs for environmental studies on contaminated lands, aiming to increase the availability of employment land.
- Employment Growth Tax Incentive: Offers a rebate on a portion of the incremental municipal property tax increase resulting from an eligible development. This incentive is available for up to five years, with a phased reduction, potentially covering 100% in the first year.
- Capital Contribution Grant: An alternative to the tax incentive, providing a lump sum grant upon final building permit inspection, equivalent to 80% of the potential 3-5 year Employment Growth Tax Incentive.
- Planning and Building Fees Grant: Offsets the cost of Planning Act application fees and building permit fees, up to $50,000, for qualifying projects.
- Large-Scale Employment Grant: Targets major developments with a construction value exceeding $500 million or the potential to create over 150 full-time jobs, with municipal incentives negotiated on a case-by-case basis.
Projects seeking the Employment Growth Tax Incentive, Capital Contribution Grant, or Planning and Building Fees Grant must have a minimum construction value of $5 million. These grants can be combined, except for the large-scale employment grant.
Beyond financial incentives, the Growth CIP includes six complementary municipal programs, such as an Employment Land Action Plan, a Land Banking and Disposal Strategy, and initiatives for Development Streamlining, which includes establishing a new Development Concierge service to support major proposals. Infrastructure projects may also be realigned and prioritised to facilitate significant employment developments.
The plan’s development involved consultation with the Community Economic Development Commission (CEDC) and was positively received by the Growth Task Force. While no immediate financial implications are tied to the report itself, funding for the grant programs will be considered during the annual budget process starting in 2026, with an initial allocation of $500,000 proposed for 2025 from the Assessment Growth Reserve Fund. The Commissioner of Growth, or a designate, will be authorised to sign documentation, including funding agreements, up to a maximum of $2 million.
