With mining activity picking up throughout the region, the city has been asked to fund a new mining division within its development commission.
Community Economic Development Commission chair Ed Schmidtke told council Monday night that $175 million in exploration was spent in the region last year alone. With 236 active projects, one-third of those in the district, Schmitdke said the CEDC needs the mining division, with a full-time expert behind it, to maximize on the "unlimited potential" that the mining industry has for Thunder Bay.
"The opportunities are literally on our doorstep," Schmidtke said.
The plan would increase the CEDC’s operating budget by $125,000 in 2011 and $250,000 in 2012. While council can’t commit funding to the next council, it did unanimoulsy pass a resolution to approve it in principle and direct administration to have the report ready for the first meeting of the new council in December. Coun. Andrew Foulds said Thunder Bay needs to act in order to keep pace with competing cities which also want to attract the mining industry.
"We need to do this as quickly as we can," Foulds said. "It sends a clear message to the mining community that we’re serious."
Schmidtke said although 30,000 claims are in the ring of fire, the division wouldn’t be looking in that area alone. A full-time mining division could be working for decades across the region to bring economic activity to the city he said.
"There are many mining opportunities outside of the Ring of Fire," Schmitdke said. "We want to look broader than that single location."
Also Monday, council heard that 2010 might become the biggest building year in two decades. $100 million worth of construction has been issued through building permits so far said development manager Mark Smith. While stimulus funding and other public money for projects such as the new Mary J.L. Black Library and Prince Arthur’s Landing contributes to the total, Smith said two-thirds of the $100 million comes from the private sector which could net the city an extra $3.8 million in taxes.
"There’s no doubt that the stimulus funding is helping," Smith said. "That’s not the main driver here."
With 137 housing starts and $13 million more commercial development than last year, Coun. Aldo Ruberto said he’s happy to hear that things aren’t as bad in the city as some people make it out to be.
"Tonight we’re getting facts that say ‘that’s not true’," Ruberto said. "You get tired of putting out fires with all of the bologna out there."
