Act
Amendments to the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 to Authorize the City of St. Thomas to Provide Assistance as part of the PowerCo. SE Project
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
134
Summary of Decision:
The Ontario Legislature has amended the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 to exempt St. Thomas from certain sections of provincial statutes that prohibit it from providing certain direct or indirect financial assistance as part of the PowerCo. SE project. PowerCo. SE is Volkswagen's subsidiary battery company.
Under the amended legislation, St. Thomas is authorized to provide the following municipal-based incentives as part of the PowerCo. SE project:
• a grant;
• a total or partial exemption from any levy, charge or fee; or
• any other assistance that may be prescribed by the Minister of Municipal Affairs and Housing.
The assistance under this new authority could be provided despite the Building Code Act, 1992 and the Development Charges Act, 1997 and section 106 of the Municipal Act, 2001.
By this amendment, the Ontario Legislature is giving St. Thomas the authority to provide PowerCo. SE with municipal-based incentives that were negotiated in partnership with the municipality and helping to secure PowerCo. SE's investment in St. Thomas
As part of the changes, the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 has also been renamed the Supporting Manufacturing in St. Thomas Act, 2023.
Under the amended legislation, St. Thomas is authorized to provide the following municipal-based incentives as part of the PowerCo. SE project:
• a grant;
• a total or partial exemption from any levy, charge or fee; or
• any other assistance that may be prescribed by the Minister of Municipal Affairs and Housing.
The assistance under this new authority could be provided despite the Building Code Act, 1992 and the Development Charges Act, 1997 and section 106 of the Municipal Act, 2001.
By this amendment, the Ontario Legislature is giving St. Thomas the authority to provide PowerCo. SE with municipal-based incentives that were negotiated in partnership with the municipality and helping to secure PowerCo. SE's investment in St. Thomas
As part of the changes, the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 has also been renamed the Supporting Manufacturing in St. Thomas Act, 2023.
Analysis of Regulatory Impact:
The Ontario Legislature has amended the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 to enable St. Thomas to provide certain types of financial assistance as part of the PowerCo. SE project.
If the authority is used by St. Thomas, it would not receive certain revenues from a subsidiary of PowerCo. SE, which could include fees and charges, property taxes and others.
The legislation would result in minimal new administrative costs for St. Thomas. The legislation provides flexibility to enable St. Thomas to help Ontario meet its contractual obligations to PowerCo. SE's subsidiary.
Only the City of St. Thomas would benefit from the amendments. No other municipalities are anticipated to be impacted by this legislation.
There may be administrative costs for St. Thomas associated with administering the new authority. Although not required, it is anticipated that St. Thomas would spend time tracking the assistance provided as part of the PowerCo. SE, project and staff would report on it to Council.
Administrative Costs:
Annual costs for St. Thomas are estimated to be approximately $500 based on the cost calculator.
If the authority is used by St. Thomas, it would not receive certain revenues from a subsidiary of PowerCo. SE, which could include fees and charges, property taxes and others.
The legislation would result in minimal new administrative costs for St. Thomas. The legislation provides flexibility to enable St. Thomas to help Ontario meet its contractual obligations to PowerCo. SE's subsidiary.
Only the City of St. Thomas would benefit from the amendments. No other municipalities are anticipated to be impacted by this legislation.
There may be administrative costs for St. Thomas associated with administering the new authority. Although not required, it is anticipated that St. Thomas would spend time tracking the assistance provided as part of the PowerCo. SE, project and staff would report on it to Council.
Administrative Costs:
Annual costs for St. Thomas are estimated to be approximately $500 based on the cost calculator.
Further Information:
Bill 134, Affordable Homes and Good Jobs Act, 2023
St. Thomas – Central Elgin Boundary Adjustment Act, 2023 Municipal Act, 2001
St. Thomas – Central Elgin Boundary Adjustment Act, 2023 Municipal Act, 2001
Affordable Homes and Good Jobs Act, 2023
Municipal Act, 2001
Proposal Number:
23-MMAH018
Posting Date:
September 28, 2023
Summary of Proposal:
In March 2023, the Government of Ontario and the Government of Canada secured an investment from Volkswagen to invest $7 billion to establish an electrical vehicle battery manufacturing plant in St. Thomas, Ontario. The investment is the largest electrical vehicle-related investment in Canadian history.
The agreement that was negotiated in partnership with the City of St. Thomas, provides for the City to grant assistance as part of the PowerCo. SE project. However, provincial statute generally prohibits municipalities from providing certain direct or indirect financial assistance to any manufacturing, industrial or commercial businesses.
To address this barrier, the Ministry of Municipal Affairs and Housing is proposing legislation that would amend the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 to exempt St. Thomas from this prohibition as part of the PowerCo. SE project. PowerCo. SE is Volkswagen's subsidiary battery company.
Under the proposed legislation, St. Thomas would be authorized to provide the following municipal-based incentives as part of the PowerCo. SE project:
• a grant;
• a total or partial exemption from any levy, charge or fee; or
• any other assistance that may be prescribed by the Minister of Municipal Affairs and Housing.
The assistance under this new authority could be provided despite the Building Code Act, 1992 and the Development Charges Act, 1997 and section 106 of the Municipal Act, 2001.
By proposing this legislation, the Ministry of Municipal Affairs and Housing will be giving St. Thomas the authority to provide PowerCo. municipal-based incentives that were negotiated in partnership with the municipality and helping to secure PowerCo. SE's investment in St. Thomas
The St. Thomas - Central Elgin Boundary Adjustment Act, 2023 would be renamed to the Supporting Manufacturing in St. Thomas Act, 2023.
The agreement that was negotiated in partnership with the City of St. Thomas, provides for the City to grant assistance as part of the PowerCo. SE project. However, provincial statute generally prohibits municipalities from providing certain direct or indirect financial assistance to any manufacturing, industrial or commercial businesses.
To address this barrier, the Ministry of Municipal Affairs and Housing is proposing legislation that would amend the St. Thomas - Central Elgin Boundary Adjustment Act, 2023 to exempt St. Thomas from this prohibition as part of the PowerCo. SE project. PowerCo. SE is Volkswagen's subsidiary battery company.
Under the proposed legislation, St. Thomas would be authorized to provide the following municipal-based incentives as part of the PowerCo. SE project:
• a grant;
• a total or partial exemption from any levy, charge or fee; or
• any other assistance that may be prescribed by the Minister of Municipal Affairs and Housing.
The assistance under this new authority could be provided despite the Building Code Act, 1992 and the Development Charges Act, 1997 and section 106 of the Municipal Act, 2001.
By proposing this legislation, the Ministry of Municipal Affairs and Housing will be giving St. Thomas the authority to provide PowerCo. municipal-based incentives that were negotiated in partnership with the municipality and helping to secure PowerCo. SE's investment in St. Thomas
The St. Thomas - Central Elgin Boundary Adjustment Act, 2023 would be renamed to the Supporting Manufacturing in St. Thomas Act, 2023.
Contact Address:
Laura Evangelista, Director
Intergovernmental Relations and Partnerships Branch
Ministry of Municipal Affairs and Housing
777 Bay Street, 13th Floor
Toronto, ON, M7A 2J3
Intergovernmental Relations and Partnerships Branch
Ministry of Municipal Affairs and Housing
777 Bay Street, 13th Floor
Toronto, ON, M7A 2J3
Royal Assent Date:
December 4, 2023
Decision:
Approved