THUNDER BAY – Thunder Bay’s city council has approved a rezoning application for the former Thunder Bay Generating Station site on Mission Island, a move its owner hopes will “unlock” it for future industrial development.
Concerns over potential environmental and noise impacts, specifically related to a newly permitted "industrial computing" use, led some councillors to consider delaying approval Monday to more closely review the city’s options.
However, councillors ultimately concluded they could rely on provincial environmental review processes, along with the imposition of site plan control by the city, voting unanimously to approve the rezoning application from Hamilton-based Budget Demolition, which purchased the site from Ontario Power Generation.
That means the lands will now be zoned Heavy Industrial, from Industrial–Utilities and Services, allowing a wide range of uses from manufacturing to shipping and transportation, tantalizing possibilities for a city hoping to rekindle its industrial sector.
On Monday, Budget Demolition said it had already received significant interest in the site, and would attempt to find a use that spurred local employment.
“By removing the specialized assets and rezoning, we’re preparing the site for a variety of future uses, unlocking the potential for the site, and creating a much more desirable property,” said business development manager Christina Murray.
“The former power generation plant provided well-paying jobs to the local workforce, but unfortunately it came to an end. Our hope is once we have the site opened up, we will attract a new industry partner and again bring well-paying jobs to the site.”
A large vessel dock, restorable rail access, high-voltage power connections, and the ability to draw water from Lake Superior have all been cited as attractive features for industry.
The company said its request for a new “industrial computing” use simply recognized the site’s suitability for that purpose, though Mayor Bill Mauro speculated the move could indicate a bit more than that.
“Clearly, I think it’s fair for us to assume to some degree that we’re adding this use in at the request of the owner because they think there’s an opportunity there for them,” he said.
The neighbouring Thunder Bay Yacht Club raised concerns Monday over the request, and specifically the potential for energy-intensive cryptocurrency-related activity.
“Development is a good thing, and we’re not against development,” said past commodore Hugh Briggs. “It’s just the potential for bitcoin mining is something that concerns us.”
The emerging industry can be extremely lucrative, but has also sparked controversy in some communities over the amount of noise and heat its operations can generate, as well as the amount of power they use.
In some cases, the yacht club suggested, noise had been reported as a nuisance kilometres away from the sites.
“Industrial-scale computing, a large data centre, could be a very good use for Thunder Bay,” said Briggs. “We just want to make sure all applicable noise and environmental controls are in place, and we as neighbours can continue to enjoy our property.”
The club wasn’t alone in its concerns, suggested Coun. Andrew Foulds.
“Many of us have received emails and other communication about this property, which clearly indicates the value citizens put on this property, for a number of different reasons – economic development, but [also] Lake Superior is very precious,” he said.
He pointed to the city’s track record as he suggested council should consider deferring approval of the rezoning.
“I’m not necessarily against this rezoning, but I think I would like a little more information,” he said. “I’m not suggesting these individuals are bad corporate citizens, but we have had some bad corporate citizens along our waterfront who have left properties worse off.”
Coun. Kristen Oliver worried approving rezoning could leave the city “married” to the use of the site as a cryptocurrency mining operation. Based on experiences reported elsewhere, she said that could have a real impact for some of her constituents.
“When you look at where this particular property’s located and you do a three-kilometre radius, a lot of the noise would be impacting the Westfort Ward,” she said.
However, she pointed out only neighbours within 120 metres had been consulted on the rezoning.
Mauro countered that the provincial Environmental Compliance Approval (ECA) process regulates noise and other emissions from industry, noting there would be an opportunity for members of the public to comment during that process if such a development went ahead.
“It’s fair to say, well what about everybody else, if the noise concerns are as significant as some think they may be? The ECA piece will allow for that input."
Senior planner Decio Lopes told councillors the provincial ECA process was the primary planning tool meant to address noise concerns.
The point was echoed by Tyler Rizutto of Stantec Consulting, retained by Budget Demolition.
“We definitely don’t want to dismiss their concerns,” he said. “One thing we can say is, there is an ECA process tied to these types of development. It’s not like we could go there tomorrow, put up a building and start this process… This is just step one.”
“Our intent is of course to make money, but never at the cost of the local environment or the community,” added Budget Demolition president Ian Bartels.
The city also applied site plan control on the site as a condition of the rezoning, noted Lopes, requiring the developer to meet certain requirements agreed upon with the city before it can proceed with development.
The property also comes with some specific restrictions within 120 metres of a wetland along its northeast boundary, which has been identified as provincially significant.
The rezoning application was reviewed by the Lakehead Region Conservation Authority (LRCA), Ministry of Municipal Affairs and Housing, and other government bodies, as well as Fort William First Nation, without objection.
That information seemed to convince councillors who had expressed hesitation.
“What I’ve heard is it’s under site plan control, and there [would be] a lot of interaction and input on this property past the rezoning,” said Coun. Mark Bentz.
Rezoning to Heavy Industrial and adding the new use of “industrial-scale computing” was approved unanimously, with Couns. Aiello, Bentz, Foulds, Hamilton, Johnson, Oliver, You, and Mayor Bill Mauro present.
Budget Demolition is still in the midst of demolishing the generating station. The largest piece of that work is set for later this year, when two boilers representing about 40 per cent of the original facility are scheduled to be demolished.
