THUNDER BAY — The Municipality of Shuniah's new official plan has raised eyebrows, and concerns, at Thunder Bay city hall.
City planners worry that the neighbouring municipality is laying the groundwork for large-scale "regional commercial development" outside the city boundary.
Shuniah council passed the official plan last fall, but it is still under review by the Ministry of Municipal Affairs.
The plan states that Shuniah regards commercial development as having an important role in economic development in the near future, "particularly that which cannot be accommodated within the City of Thunder Bay."
It singles out major intersections within the municipality as an appropriate location for "larger-scale developments and mixed-use nodes that can serve the region."
Shuniah Mayor Wendy Landry understands why that's got the attention of the city.
"The provincial policy statement says any kind of big-box store, commercial development should go to the larger centres first, rather than the smaller communities. We have a lot of land available. So for us to not be able to consider development of large retail stores or anything like that, it's a challenging comment," Landry told TBNewswatch.
She said she appreciates the rationale behind the provincial planning guidelines, but suggested that Shuniah is in a unique situation.
"With Shuniah butting up to Thunder Bay, if there was a property available for a large development, the jobs are going to go to the city, so it's a share/share situation. We don't have the population in Shuniah to fill those positions. It's an opportunity for the city and outlying communities to work together on potential development."
Landry said Shuniah is 99 per cent reliant on residential taxes, and can't diversify if it's excluded from big commercial projects.
The City of Thunder Bay has recently faced increasing challenges in growing its own tax base.
Last year its net taxable assessment slowed to barely half the five-year average, creating new tax revenue of less than $500,000.
It's one of the reasons that Shuniah's plan came to the attention of the city's planning services division and city council's intergovernmental affairs committee.
City asks province to make changes to Shuniah's official plan
The planning division has already provided feedback for the Ministry of Municipal Affairs, urging it to modify the commercial policies of the plan before it's approved.
Intergovernmental Affairs Committee members also voted recently to make the same request in a letter to Minister Steve Clark, Infrastructure Minister Laurie Scott, and Northern Development Minister Greg Rickford.
Planning Services Director Leslie McEachern said what Shuniah is proposing does not align with or support Thunder Bay's role as the regional economic and service hub.
Shuniah's plan, she said, supports the development of "larger-format commercial uses at major intersections, and a broad range of Highway Commercial uses that rely not only on the use of the highway or its traffic, but also on large parcels of land."
McEachern said the city's own official plan already provides for regional commercial development including big-box retailers, shopping centres and other development that essentially service the region, and the city feels those types of uses should be directed to areas already designated for them.
"The province, through the Northern Growth Plan and the Provincial Policy Statement, has identified Thunder Bay as that regional economic and service hub."
McEachern said city council feels very strongly about protecting Thunder Bay's designated commercial areas.
"They take our municipality's role as the regional centre as a role that's important. We'd like to have our surrounding municipalities work collaboratively with us to support that regional focus."
Landry says regional commercial development isn't just about Costco
There has been speculation in the past that Costco has looked at the option of building a store on Shuniah's side of the boundary with the city.
When she was asked about that in an interview this week, Landry initially responded "no comment...there's nothing to talk about, yet."
She went on to say that Costco has not approached the municipality about any of the property it owns.
"Obviously we would all like to see a Costco in the area. It sounds like they've been talking to people for years, and the city for years. It would be great for the region."
Landry said she understands that Costco is still looking for property in the area, "but that doesn't necessarily mean Shuniah specifically."
She also emphasized that the issue of regional development isn't just about Costco.
"It's about anything. You can't make this about Costco. When we talk about opportunities for development in our area, Oliver-Paipoonge butts up against the city as well. So if you do have somebody coming in with a larger development, and can't find what they need in Thunder Bay, the opportunity should be there for neighbouring communities to develop and work with the city on that."
Landry said spin-off economic benefits from big developments would go to every community in the area.
"What's good for the city is good for the region, and what's good for the region is good for the city."
