A Pivot Point in Port Colborne Port Colborne is at a crossroad economically, culturally and politically. For better or worse, the past eight years was dedicated politically and financially to the construction of the Vale Centre, based all on the argument that the existing facilities were too expensive to operate with ever increasing subsidies from the taxpayer. Whether this massive investment of tax dollars generates the spin off that its advocates hope for, the project is done. It looks awesome. But now it has to perform. The increase in overall subsidy of an additional $400,000 per year on the tax base is significant when added to the existing $600,000 in subsidy for the facility. Make no mistake, this new gem costs the taxpayers $1 million per year to operate above its revenue streams, much more than the old facilities. In the business world, that’s called a $1 million annual loss to the shareholders. The new skate park is also an impressive new community asset which also carried an impressive capital cost, including interest, of around a million dollars. Beyond one-time capital sponsorship, there is no long term revenue stream to this park, but there is a long term maintenance requirement that will, like the Vale Centre, be added to the City budget. To be fair, no one really expects these facilities to actually make money. Recreational facilities rarely, if ever, contribute back to the tax base. There is a solid argument to be made in support of community facilities because it adds to the quality of life, activities and diversity in a community. But let’s assume that we’re done with building sports stuff as the key driver for community activities. Let’s accept that this particular sector of our local economy is complete for at least the next 20 years. But let’s also assume that a well-rounded and attractive community also needs a well-rounded strategy that appeals to the entire demographic profile and recognizes the trends on the horizon. I would argue that the economic, cultural and political priorities of Port Colborne are at a pivot point and it’s time to look at the realities facing the community. The average age of Port Colborne is 48 compared to the Ontario average of 39. This almost decade difference is very significant because it has a direct correlation to the growth in the youth population. The current number tells us that our youth population will decline, not increase. With the decline of heavy industry and the loss of thousands of jobs over the past 40 years, Port Colborne evolved into a bedroom community. Many see this as a negative rather than embracing the opportunities within that new reality. It is not such a bad thing to be a bedroom community. Ask Fonthill. Look slightly east to Ridgeway – lots of new investment in housing and development, and therefore, increase in tax base. But even as a bedroom community, we seem to rank last. Port Colborne has the lowest number of new housing starts of any urban serviced community in Niagara, year over year. No one wants to build here. Port Colborne’s population is only expected to grow by 3100 people in the next 20 years or an average of about 150 people per year. Unfortunately, the median income of Port Colborne is about 22% less than the Ontario median. This poses additional problems when developing strategies for growth. Even Hockey Canada reports a drop in minor hockey participation by 35% from its peak with projections suggesting even further decline in minor hockey participation rates in years ahead. Add a declining youth population in Port Colborne to that formula and the problem is crystal clear. We are getting older and poorer and the impact on the tax base is going to be dramatic. Obviously competent political wisdom would suggest that every effort should be made to attract new residents and new investment to improve the lot of the community. But two things need to happen. First, recognize, don’t ignore the facts. Secondly, focus effort on the things you can control and change. Thirdly, invest in projects that generate revenue streams that stimulate incremental growth. Every community wants to land the big fish because of the big bang theory of instant growth and jobs. Unfortunately, those events are rare and big companies have made their locations decisions long before the community has a hint of the investment. The City of Port Colborne spent well over a million dollars over the past 10 years in macro-development efforts, or trying to land the big fish. The tax base has not expanded measurably beyond upper tier government tranfers during this time and any new jobs were created from within the existing business and industrial base. This is referred to as organic growth and should be the main priority in the city. As much as the current council wants to promote a multi-modal transportation advantage, Port Colborne has the worst transport linkages in Niagara. Every major highway stops at the city’s boundaries and it unlikely that this will change in the next 20 years. We are the farthest south in Niagara. The geography just doesn’t promote industrial growth based on linkage. Transportation is not a comparable or competitive advantage notwithstanding the Welland Canal. That is not to say we can’t ever attract industry, but it will be based on other factors such as community amenities, vitality and commercial viability and aesthetic value. In other words, Port Colborne has to be an attractive place in which to live and also do business. Concurrently, we need to promote organic growth in retention and expansion of local businesses with roots here. It will be gradual, but much more stable and sustainable. It won’t be the ‘big bang’ but it will be meaningful. We talk big about tourism, but we really have no idea how to promote and grow the sector when the strategy keeps changing. The tourism file was removed from the purview of the economic development effort (again, looking for the big bang) and there has been no effort to develop a cohesive economic, tourism or commercial strategy to maximize our comparable advantages. Downtown Port Colborne is in crisis in both retail and infrastructure. It is literally falling apart and has a palpable feeling of sadness on the streets. All of the retail growth has been in the thrift and discount store sector. This is a real illustration of how the market responds to the socio economic demographic in Port Colborne. In case anyone noticed, not one single Christmas light was put up in downtown Port Colborne in 2013, something that I believe hasn’t ever happened since electrical distribution was installed downtown at the turn of the last century. It made a sad business climate even more depressing. The Roselawn Centre, a key cultural asset owned by the City of Port Colborne, is also falling apart operationally and structurally. The decline of Showboat Festival Theatre, not to take away from Lighthouse Theatre’s much smaller program, has had a huge impact on the health and activity within the facility and in the rest of the retail community. Scarce marketing dollars and even weaker political support for Roselawn is ensuring its slow death by a thousand cuts. Roselawn is failing because its owner has ignored it, in my view, by design. I would argue that investing in Roselawn and downtown is inextricably linked to the future of the city. And I would challenge anyone to look at the marketing strategy of any community, including our own, that doesn’t effectively start with: Come to our town, we will feed you and entertain you. The restaurant sector is not growing and the entertainment sector is sparse and sporadic. I would also challenge anyone to find a community that opens with: Come to our town, you can play hockey. Right now, Roselawn is effectively dark, largely unused, and in need of a plan of renewal based on current conditions and trends. But it also needs the same political strength and commitment that built the $32 million Vale Centre. Drive by the front of Roselawn and you can see the evidence of neglect as the HVAC system is visibly falling apart on the main building. A vibrant, dynamic and aesthetically impressive downtown is a key element of economic growth and success. The design is done and ready to go, but there is no political will to move it forward. The plan to enhance the Market Square is a critical and doable component to attract people to the downtown core. This very modest investment would generate measurable dividends. It is not good enough for people at City Hall to throw up their hands and say we can’t compete with the big box stores. Focus on diversification, renewal and invest in the assets already owned and controlled. That leads to incremental investment, job creation and expansion in the local economy. Do that, and maybe a big fish will notice the dynamic and creative cultural and retail environment, and be able to play hockey too. Sadly, Port Colborne is actually considering spending close to $10 million on an operations centre to park its trucks, store its salt and sand, and house the city yard. If we can find $10 million for anything, invest it into downtown renewal, Roselawn, and areas of direct control. Do that, and now you have a well-rounded and dynamic local ecosystem. Don’t do it and the current facts will never change. We will continue to get older and poorer.
Posted on: Tue, 01 Apr 2014 13:21:03 +0000
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