Large Scale Industrial Grant Matching Program

In 2023, County Council directed administration to implement a process that would enable the County to provide grant funding to attract large scale industrial development to the County with the aim to diversify the tax base and target significant job creation.

• Request from the Town of Tecumseh to Initiate an OPA to Incorporate revised CIP policies
• Advancement of an Official Plan Amendment to the Community Improvement Policies
• Summary of Public comments from the Public Meeting for an OPA to Modify CIP Policies 

This Large Scale Industrial Grant Matching Program (“LSI-GMP”) aims to work in collaboration with the forthcoming Regional Employment Land Strategy (“RELS”) as an important tool to further large scale industrial development and help the County achieve the economic development goals of the County’s Strategic Plan. The industrial development CIP related tax grants offered by the seven municipalities varies from community to community.

This program is the first of its kind offered by the County. It works in collaboration with local municipalities, providing matching grant funds for their approved Community Improvement Plans (CIPs). The County's main proposed role is to provide a tax rebate for its portion of the property tax for eligible projects, for up to a maximum of 10 years.

The Large Scale Industrial Grant Matching Program includes the following sections:

Purpose and Goals:

• The LSI-GMP aims to support regional economic development through financial incentives targeting large-scale industrial investments.
• It aligns with Essex County's Strategic Plan and Regional Employment Land Strategy, intending to compete with similar programs offered by single-tier municipalities.

Strategic Priorities:

• Focus on industries such as manufacturing, clean tech, and logistics, particularly targeting very large industrial properties as defined by the Municipal Property Assessment Corporation (MPAC). 
• Encourages the harmonization of local and county initiatives to streamline processes and enhance the attractiveness of Essex County for industrial investments.

Financial Incentives:

• Includes Tax Increment Equivalent Rebate, Development Charges Rebate (if applicable), and Planning Act and Permit Fee Rebates.
• Incentives are specifically designed to offset costs associated with new construction and expansions.

Eligibility and Application:

• Incentives are available for projects located in designated Community Improvement Plan (CIP) areas that comply with program criteria.
• Applications are reviewed by the County Planning Division as a first screening with a structured evaluation and approval process.

Implementation and Administration:

• The program is implemented over a ten-year period, with emphasis on continuous monitoring and adaptability to changing economic conditions.
• Administration requires collaboration between County and local municipalities, involving early notification and semi-annual reviews.

The implications of this initiative are significant, promoting enhanced industrial growth and economic resilience for Essex County. The document highlights the importance of strategic cooperation between the County and local municipalities, while also maintaining a flexible and responsive program structure.

The proposed Large Scale Industrial Grant Matching Program (LSI-GMP) represents a strategic opportunity for Essex County to attract large-scale industrial development, create jobs, and grow the tax base. Implementing the program will result in direct costs to the County, primarily related to property tax rebates awarded to eligible projects and the administrative work required to review applications, calculate grants, and maintain records.

These costs are expected to be offset by the long-term benefits of new industrial development. These benefits include increased property assessment and tax revenues from new or expanded industrial facilities, as well as the economic spin-offs associated with job creation and growth in related local industries. By providing top-up funding to support municipal Community Improvement Plans, the County strengthens its competitiveness and positions Essex County as a more attractive location for significant industrial investment.

If the new Large Scale Industrial Grant Matching Program guidelines are approved by County Council, the member municipalities will be informed and staff will establish application and scoring methodologies.