By Paul Morden, from www.theobserver.ca The Observer
Ontario’s $80-million Southwestern Ontario Development Fund could be a source of funding to create an oversize freight route to the St. Clair River for Sarnia’s metal fabricating companies.
Doug Reddick, with the Ministry of Economic Development and Innovation, was in Point Edward Thursday, leading an information session about the newly launched provincial fund.
David Moody, with the Sarnia-Lambton Economic Partnership, has been working with the Sarnia-Lambton Industrial Alliance — a group of 40 companies —to expand the market for locally fabricated industrial modules beyond traditional customers in Chemical Valley.
“That’s something we’ve had in the back of our minds,” he said, “that (the development fund) could be a possible source of funding.”
Street and dock upgrades needed to accommodate the large modules would cost between $3.4 million and $6.4 million, according to a study carried out for the alliance.
A dedicated shipping route would make it easier for local fabricators to attract customers in the western oil patch, as well as overseas.
“We’re hoping to have meetings with federal officials, too,” Moody said.
About 20 Sarnia-Lambton companies — including manufacturing, fabricating, technology and bio-chemical firms — registered for Thursday’s information session, Moody said.
Brooke-Alvinston Township Mayor Don McGugan attended but said he had expected a larger turnout. “I’m surprised it wasn’t full,” he said.
McGugan plans to share the information he gathered with businesses in his township, he said.
The four-year fund, modelled after a similar program in eastern Ontario, will include $20 million per year to assist projects in southwestern Ontario — stretching from Windsor and Sarnia as far east as Niagara Falls, Kitchener and north to Owen Sound.
A grant — up to 15% of the cost of business expansions — is available for projects that create new jobs. There’s also funding available for regional development projects.
Reddick said 15 to 20 applications have come into the fund since it started up in the fall, but only one has been given a green light so far.
“This is a hard asset-type of program,” he said. “We’re talking building expansions, we’re taking about buying equipment.”
One of the requirements is that the projects must show they’ve created “full-time sustainable jobs,” he said.
Eligible are companies include those in advanced manufacturing, life sciences, processing, tourism, information and communication technology, Reddick said.
“It’s a relatively small amount of money but it’s something that’s available,” Moody said.
“It’s there to encourage companies that are looking at expansion projects.
“We’d like to see companies in our area take advantage of that, and get their share.”
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