Shuniah, Ont. — Consultants hired by the Municipality of Shuniah have concluded that the development of an industrial park in the community is not feasible.
There is little demand in the market, they say, and the cost of building and servicing the MacGregor Industrial Park would outweigh the financial benefits to the municipality.
In a report to be discussed by Shuniah councillors Tuesday evening, the consultants state "This project is NOT financially viable."
They calculated that over a period of 20 years, assuming five property sales to businesses that would set up in the park, the project would bring in revenues of less than $220,000.
Development costs, by contrast, would total $1,740,000.
The consultants explained that there are several issues affecting the financial viability of a new industrial park, including:
- lack of demand for industrial land in the Thunder Bay market
- the low cost of industrial land in the Thunder Bay market
- the topography of the proposed MacGregor site makes development difficult and costly
- Oliver-Paipoonge offers land that is easier to develop
- the high cost of extending services to the proposed site
Development of the MacGregor Industrial Park as a rural industrial subdivision, the report concludes, "is not recommended."
However, the consultants have held out the "slim long-term possibility" of the over-400-hectare site being developed for heavy industrial use at some point.
As such, they're advising Shuniah to prepare "minimal marketing materials" to raise awareness of the property's potential.
