M.D. OF BONNYVILLE – The M.D. of Bonnyville is widening the door for industrial investment, just a couple of months after launching its new tax incentive program.

Council approved amendments to the M.D. Industrial Incentive Grant Program Policy on Aug. 25, with the key change allowing qualifying industrial developments to be considered based on an approved industrial use, rather than limiting eligibility strictly to properties already carrying specific industrial zoning.

The program itself isn’t changing dramatically. The tax incentives, construction thresholds and five-year structure remain in place.

Instead, administration told council the amendment removes an unnecessary hurdle for businesses that could otherwise qualify.

Industrial use, not just the zoning label

The Industrial Incentive Grant Program was originally adopted June 9 to encourage new development, expansion, redevelopment, and conversion of non-residential properties.

During a subsequent review, administration identified language that could limit the program’s usefulness for industrial infill and business attraction.

The original eligibility language focused on properties zoned Rural Industrial or Direct Control District No. 6 Industrial District. The amended policy instead allows a property to qualify when it has an approved industrial use.

Economic Development Specialist Scott Kovatch told council the change was about creating more opportunities within areas where industrial activity can already appropriately occur.

“What we’re looking to do is make it a little bit more inviting for businesses to come here.”

The M.D.’s report says the amendment is intended to help retain and attract businesses to appropriately zoned existing areas as part of an industrial infill strategy, while encouraging development and generating additional municipal revenue.

The revised policy also adds a formal definition of an industrial use, covering activities such as manufacturing, processing, fabrication, assembly, warehousing, storage, distribution, repair and servicing, along with resource-related operations.

Associated offices, training facilities, outdoor storage, yards, loading areas and equipment parking can also form part of an industrial use, provided the development complies with the applicable Land Use Bylaw.

The incentive itself stays the same

For businesses that qualify, the incentive can be substantial.

The grant applies only to the municipal portion of property taxes generated by the eligible new development.

Approved projects can receive:

• 100 percent of the eligible municipal tax increase for the first three years
• 75 percent in year four
• 50 percent in year five

The incentive applies to new construction or portions of a property that were not previously assessed.

Projects must generally result in at least a 25 percent increase in assessed value or $200,000 in new construction value, whichever is less.

The policy also sets a maximum eligible new construction cost of $5 million.

Projects normally have two years to be completed, although council can approve an extension.

Applicants must also remain in good standing with the municipality. Anyone in arrears on M.D. taxes, utilities or other fees won’t receive the grant for that year.

Council talks about making the M.D. competitive

The discussion around the amendment went beyond changing a few words in the policy.

Council talked about making sure the incentive actually works as an economic development tool and doesn’t inadvertently turn potential investment away because of how a property happens to be zoned.

“We want to be open for business. We want to invite people here.”

That was ultimately the intent behind the amendment: keep the safeguards of the program while giving the M.D. more flexibility to use it for industrial development that fits within its planning rules.

Administration will also develop an awareness campaign with the M.D.’s Marketing and Communications department to promote the program.

Council adopted the amended policy.

For businesses looking to expand or set up shop in the M.D., the message behind the change is fairly simple: if the development fits and brings new industrial investment to the municipality, council doesn’t want the wording of its own incentive policy getting in the way.