–Anand Pye
Edmonton has faced a significant shift in its non-residential assessment share over the past decade. In 2008, Edmonton held a commanding 72% of the region’s non-residential assessment; however, by 2022, this share had dropped to 60%.
This decline has resulted in increased pressure on the remaining taxpayers. Residential taxes are up, and industrial taxes are now, on average, more than 2.5 times higher in Edmonton than in the surrounding region.
In about 2015, before I joined NAIOP, I sat at Council as they heard similar numbers. The Council of the day was adamant that we not lose our position as the destination of choice for new industrial businesses. In fact, the priority was so high, and the timeline to create an action plan was so ambitious, that I was hired to support NAIOP’s engagement.
And I am proud of what we accomplished: a dedicated resource to support the biggest projects (now called the Client Liaison Unit), and a funding mechanism to open up new areas (The Industrial Infrastructure Cost Sharing Program). But, unfortunately, today, the situation is worse.
The Need for Immediate Action
That’s why NAIOP pushed for a new Industrial Action Plan. Our members were engaged in the creation of the plan over the past year, and shared their thoughts on how to attract and retain new industrial businesses.
The top ideas included:
– Opening up more land for development.
– Further speeding up permitting.
– Finding opportunities to close the tax gap between us and the region.
– Rigorously tracking our progress against our competitors, and involving Council regularly.
These are all critical steps that need to be taken without delay to address the tax challenges and stimulate economic development in Edmonton.
You can read our final letter outlining these proposals here.
Council’s Positive Response
The other day, the final report was presented, and we spoke to Council about what parts of it needed to be prioritized and expedited. We were encouraged by the positive response: Council asked administration to return in Q1 2025 with a prioritized list of actions, which would include our highlighted recommendations, as well as cost estimates to implement key parts of the plan. It’s clear to us that they want Edmonton to be a competitive place for new business, and want to be a part of the solution.
This was a crucial step towards addressing the current challenges and ensuring a sustainable path for Edmonton’s economic growth. But we need the continued involvement of industrial developers, public institutions and stakeholders to keep up the momentum, and implement the most important parts of this plan.
