Fabio Belli wants Sudbury to grow, and he wants the city to offer entrepreneurs financial incentives to make it happen.
Belli, a city councillor who sits on the board of the Greater Sudbury Development Corp. (GSDC) and the Planning Committee, amongst others, believes increasing the city’s revenue means expanding its tax base. And the best way to do that, he contends, is by bringing more businesses to the city.
“We call ourselves business-friendly—we’re ‘open for business’—so why aren’t those businesses coming to this community?” he questioned. “A lot of the feedback I’m hearing is cost; we have the highest industrial tax in Ontario right here in our community.”
In September, Belli tabled a motion requesting staff to research the potential in instating municipally granted incentives that would entice new and existing business owners to invest, establish and expand business in Sudbury. Council supported the motion unanimously, and a report detailing potential options and criteria is expected in February.
Under Belli’s plan, which is in its nascent stage, businesses that meet predetermined criteria could benefit from tax breaks and lowered development and permitting fees over a three- to five-year period while they become established. Criteria could include, for example, setting up a business that will create 30 good-paying jobs.
“Ideally, job creation is happening, there are people spending money in the community, buying homes, paying taxes, and that’s one of the best ways of generating revenue to pay for a lot of our deficits, projects or services,” Belli said.
Sudbury has much to offer entrepreneurs, he noted. A central location, amenities, shopping and a natural environment all attract people to the city.
But development fees totalling thousands of dollars are discouraging business owners from establishing their ventures in Sudbury, Belli said. In the past, businesses have bypassed the city in favour of North Bay, Sturgeon Falls, or other nearby communities that either offer incentives or have lower costs associated with establishing a business.
Belli believes Sudbury needs to take a page out of North Bay’s playbook to be competitive. The city got serious about economic development in the early to mid-2000s under the guidance of then-mayor Vic Fedeli, who offered commercial land at $1 an acre, which filled up its industrial park and infused the city with new business and employment.
“I don’t think we as a community have seen any incentives to attract these businesses,” Belli said. “North Bay’s come out publicly, and now with the four-laning of Highway 11 and the industrial area that they’ve put in place, they’re trying to create jobs, they’re trying to bring people to the community and grow their tax base. They’re no different than we are.”
There are naysayers who believe providing businesses with financial breaks takes tax dollars out of city coffers. But Belli looks at it like this: if new business isn’t created, the city gets nothing. But when a new venture opens up in Sudbury, it will eventually be paying taxes and bring with it dozens of jobs, which go to people who spend money in the community.
There’s still a long way to go before Belli’s idea sees fruition. Staff will reveal its recommendations in a report in February, and then council must review those recommendations before approving the plan.
But Belli is confident his proposal can result in the growth and expansion Sudbury needs to generate revenue and evolve as a community.
“If it’s a bit of a break for the first three to five years to get these businesses established in the community and make them come to our community, then I’m all for it because I want to see our community grow.”
