Norfolk considering two development corporations

Luke Edwards

Grant Haven Media

As Norfolk staff urge councillors to allow their economic development efforts to get up to “warp speed,” some councillors seem to prefer a more cautious pace for the time being.

Councillors at the March 10 meeting eventually approved moving ahead with two municipal development corporations - one, to handle a potential municipal accommodation tax (MAT), was approved in principle - though it took a while to get there. 

“It’s simply a tool that allows Norfolk County to operate a little closer to warp speed when the opportunity presents itself, rather than moving at the traditional municipal pace,” said director of economic development John Regan.

The creation of an MDC has been discussed as a possibility at least since council’s decision to maintain public ownership of marinas in Port Dover and Port Rowan. An MDC allows for a publicly owned entity to operate more like a for-profit business. There are certain rules and regulations under provincial legislation that force municipalities like Norfolk to operate in a certain way. And sometimes, those processes don’t align with the ideal way to operate something like a marina, CAO Al Meneses told councillors. An MDC has also been considered for the tourism entity that’s required for any municipal accommodation tax. The four-per-cent fee for people staying in hotels, Airbnb units and other overnight accommodations would be split between the tourism entity for marketing work and the municipality for tourism infrastructure.

The staff report recommended MDC-1 be approved in principle, subject to the approval of a MAT. MDC-2 would proceed independently and provide a governance structure for the Port Dover marina while also pursuing industrial land development.

“We brought forward to council some very viable options to make money,” said Regan.

However, Coun. Chris Van Paassen was hesitant to commit the county to take the leap of faith staff were requesting.

“That’s a suicide clause to jump that far without anything under you,” said Van Paassen, who at the Feb. 24 meeting successfully altered a committee decision on the MAT, laying out a series of steps that need to be taken before a MAT is approved. The move was seen by some, namely Mayor Amy Martin, as a way to take a MAT off the books without actually denying it. Directly after the MDC report was discussed at the March 10 meeting, councillors approved a subsequent report approving the MAT in principle along with a draft short term rental bylaw. Both are subject to further consultation.

However, Van Paassen once again saw the MDC recommendations as skipping ahead. He said he’d be comfortable approving the MDC-2 in principle and waiting on the MDC-1. Coun. Doug Brunton also questioned the need for an MDC to operate the marina, suggesting it should be as simple as hiring a manager who knows how to turn a profit with it.

“If it were as simple as just hiring someone to run the marina I think this council would have done it five, 10, 15 years ago… it isn’t that simple,” said Meneses, reiterating that county structure adds a layer of complexity.

Despite the hesitancy from some councillors, enough supported the staff recommendations to have both pass.

“Are we open for business? That’s the question that comes to mind,” said chair Adam Veri.

“If we are, then when do we leap? We’re already behind compared to our neighbours and what other municipalities are doing.”