The Town of Coaldale hopes to attract more industrial developments with a new incentive program, February 22, 2023. (Photo: Jack Van Rijn)

By David Opinko

Town of Coaldale launches industrial incentive program

Feb 22, 2023 | 11:12 AM

COALDALE, AB – Coaldale town council hopes to attract more industrial businesses to the community.

At the council meeting on February 13, 2023, members voted to approve a new Industrial Incentive Policy (IIP).

Town of Coaldale Director of Growth and Investment, Cameron Mills says the current industrial park was developed entirely using municipal funds.

He says it is too risky to spend millions of dollars in taxpayer’s money to build another industrial park with the hope that it will attract enough business to be financially feasible in the long run. If the town were to do that again, Mills says it would mean cancelling or delaying other needed projects in the community.

For the creation of Coaldale’s new industrial park, the town has been seeking private investors to partner with.

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Mills reports that Coaldale’s business community has “functionally doubled” over the last four-to-five years, and he wants to keep that momentum going.

“Because of Coaldale’s booming economy over the last few years, we had the opportunity to attract private investment to do that, rather than requiring the town to do it,” says Mills. “The Industrial Incentive Policy is all about supporting that private investment to make sure that can be done in an efficient and economic way.”

The IIP offers industrial companies a few different incentives should they decide to set up shop in Coaldale.

Mills says companies can claim a three per cent reimbursement on the construction of a new industrial development. He said businesses will often consider multiple different communities in a region, so this rebate will make Coaldale more attractive.

“If the cost of developing and the cost of land has gone up, now, if that three per cent value is applied against the price they’re paying for the land for newer lots in the subdivision, it really makes quite a substantially more competitive piece than they would have been without it,” says Mills.

For projects that are deemed to have a “broader industrial community benefit”, Mills says there are opportunities to enter into cost-sharing agreements with the town.

One example he gave of a cost-sharing agreement under the IIP was the extension of 12 Avenue. Mills says 845 Developments is working to connect the existing industrial park to Highway 845.

“Traffic is going to be able to get from Highway 845 into the industrial area and down to Highway 3 over on the east edge of town without needing to go south through the main Highway 845/Highway 3 intersection, which is often quite busy and can be a little bit difficult, especially with larger trucks,” says Mills. “There’s an opportunity now for heavy traffic to really bypass the centre of town.”

With the approval of the IIP at last week’s council meeting, the program is now in effect for businesses to utilize.

More details on the IIP are on the Town of Coaldale website.

READ MORE: Town of Coaldale office opens at new Civic Square location