Expect expansion

Thunder Bay’s economy is on its way up, says the head of the local economic development corporation.

City council heard an update from the Community Economic Development Commission’s Steve Demmings Monday night. The CEDC, with a net operating budget of $921,000, brought 454 direct jobs to the city last year. The Thunder Bay Metal Fabricators, which represents more than 50 local companies, has brought more than $50 million in contracts so far and the city, originally forgotten under the North American Super Corridor Coalition, is now a NASCO member.

"Thunder Bay is well underway in terms of change," Demmings said.

Global Sticks, which opens its doors May 20, has been a 41-month-long project and medical company Tornado officially opens next month as well. Demmings said Tornado is part of a revitalized North core that has everything from restaurants to mining companies expand.

He added that one mining company, Fladgate, has expanded from four employees to 50 in the last couple of years.

Fladgate and other companies are buying buildings across the downtown north core.

"The mining sector has exploded," he said. "They’re absolutely going gangbusters right now."

But the Whalen Building, which houses the CEDC, Tornado and other companies revitalizing that downtown core was a great concern for some councillors Monday. The building, which came into the city’s possession in 2006, will cost more than $6 million to renovate council learned. Coun. Lynda Rydholm said that caught most of council off guard.

"These numbers come as a surprise to most if not all of us," Rydholm said.

About $900,000, from reserve funds generated by rent, has been spent on the inside of the building, which was constructed in 1913, so far. But the terra-cotta exterior needs to be renovated.

Council approved a $117,000 contract for constancy work Monday, but councillors were more concerned with the overall cost of the building, which has heritage status. About $1.3 million for terra-cotta repairs was approved in the 2011 capital budget.

Coun. Mark Bentz said with some estimates as high as $10 million for the building, that’s a lot of money to repair one building when the city’s entire infrastructure deficit is $15 million. Bentz was told that the city couldn’t realistically recoup all of the renovation costs through tenants and still keep rent competitive.

"Quite honestly we’re not good at leasing space," Bentz said. "I don’t think we ever envisioned ourselves as being an office building operator."

Council expects a full report on the Whalen Building.