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how to maintain and attract jobs?

City exploring business incentive options in wake of Parkland Fuel Corp. move to Calgary

Jul 11, 2019 | 5:32 PM

The City of Calgary used a job creation investment fund to help lure Parkland Fuel Corporation away from Red Deer. Whether The City of Red Deer tries a similar tact in the future remains to be seen.

The Opportunity Calgary Investment Fund announced this week that Parkland Fuel Corporation will receive up to $4 million to consolidate its national operations in that city.

In total, the funding from OCIF will support the relocation, retention, or creation of 430 permanent full-time head office jobs with the company in Calgary.

Parkland announced in February that it was closing its Red Deer office to consolidate it with their Calgary headquarters. More than 80 per cent of the 120 full-time staff in Red Deer were to be given offers to relocate to Calgary, the company said, while the remaining positions would be phased out by summer’s end.

Parkland’s history in Red Deer dates back to 1964 when Jack and Joan Donald started Parkland Oil Products Ltd.

City Councillor Vesna Higham believes Red Deer need not necessarily offer cash incentives, but does need to start thinking more outside the box to attract and retain business.

“I mourn the loss of 120 jobs from Red Deer, and any time I see jobs leaving our community in this kind of a manner, it’s sobering and difficult,” she says. “Every municipality has to account to their own citizenry to do the best they can, so it’s very difficult to fault Calgary for doing what they feel is in the best interests of their community.”

Higham is thankful that The City of Red Deer is already looking at a number of potential business incentives, grant funding options, and zoning considerations, but adds they must act quickly.

“This move really highlighted the need for this because the scale of it is so large — 120 jobs — but we have seen movement from our city to the county and we’ve been very aware of that, and we have been working proactively to address it,” Higham says.

“At the end of the day I think any type of incentive a municipality provides has to be well thought out and strategic,” says John Sennema, Red Deer’s land and economic development manager. “I don’t think it always has to come with a pool of money, there are other ways we can incentivize businesses. Whether it’s through zoning or certainty in connection fees or a tax holiday for an underutilized property, those can all be done without gifting or granting money, specifically, to help stimulate the economy.”

Sennema is doubtful, however, that incentives would’ve prevented Parkland’s move out of Red Deer.

“They already have a presence in Calgary and are a multi-national corporation now,” he noted. “I think the move would’ve occurred regardless of the money provided to them. I don’t think, and this is just my opinion, the four million dollars was the tipping point for this decision.”

“As a Canadian company, we are proud to be expanding our footprint and employee base in Calgary and welcome the support of the Opportunity Calgary Investment Fund,” said Bob Espey, Parkland Fuel Corporation President and CEO. “Our investment reflects our commitment to the city, and we expect that our people will bring tangible and lasting benefit to the community and to Calgary’s economy. We have ambitions to continue to grow in Canada and internationally, and we look forward to continuing to be an ambassador for the city.”

Senemma says they are in the preliminary phases of looking at different incentives and hope to bring something formal to council this fall.