ALASKA [USA] YK NUN NWT. BC Prince George SASK QUE MAN. Pacific Ocean CANADA. ONT Vancouver. Seattle USA BUSINESS INVESTMENT GUIDE
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1 ALASKA [USA] YK NUN NWT BC Prince George AB Pacific Ocean SASK CANADA QUE MAN ONT Vancouver Seattle USA BUSINESS INVESTMENT GUIDE 1
2 Prince George, British Columbia, with a population of nearly 80,000, is the largest city in one of the fastest growing regions in Canada and is fast becoming a centre for investment and growth. The City s skilled workforce and diversified business sectors offer a range of opportunities for new business investment across the expanding economy. It is the supply and service centre for business, industry, transportation, healthcare, education and culture for a much larger region of over 320,000 people. 70% of all proposed capital investments in BC are expected to occur in the northern region. Prince George Statistics: People employed: 47,000 Unemployment rate: 6.4% Average home price: $284,611 Median family income: $98,060 Building permits: $88.2 million Airport traffic: 470,849 Population/Demographics: City of Prince George: 71,363 City of Prince George (CA): 83,823 Population under the age of 55: 74% (versus 70% for BC) Regional District of Fraser-Fort George: 91,277 Northern BC trading area: 320,221 2 Photo Credit: UNBC/Tim Swanky
3 WORKFORCE AND ECONOMIC DRIVERS Workforce Main Sectors Employment Growth ( ) Information, Culture and Recreation The sector seeing the greatest growth over the past five years, Information, Culture & Recreation, represents the publishing, broadcasting, and telecommunications industries as well as data processing, hosting, and related services. Manufacturing Manufacturing remains one of the largest sectors in the Cariboo region, with a broad range of production activities including wood products, machinery & equipment, chemicals & plastics, and food & beverage manufacturing. Accommodation and Food Services Accommodation & Food Services has seen consistent employment numbers since 2010 and is indicative of a growing tourism industry across the Cariboo region. 0% 20% 40% 60% 80% 100% 18% Information, Culture & Recreation 26% 0% 20% 40% 60% 80% 100% 14% Manufacturing Accomodation & Food Services Forestry, Mining, Oil and Gas Prince George is the centre of a vibrant, sustainable, globally competitive forestry industry that provides enormous benefits to the local and regional economy. 28% of Prince George s income is directly and indirectly dependent on the forest industry. 0% 20% 40% 60% 80% 100% Forestry, Mining and Oil and Gas 0% 20% 40% 60% 80% 100% Public Administration Public Administration Over the past decade, employment in the Public Administration sector has remained consistent as have the establishments comprising it. Establishments primarily engaged 9% in activities of a governmental nature are represented in the sector and offer a wide range of occupations. 0% 20% 40% 60% 80% 100% 10% Other Services The Other Services sector has seen steady growth in the Cariboo region which is comprised of industries that provide personal care services, automotive repair and maintenance, and other services to individuals not classified within any other sector. 5% Other Services 0% 20% 40% 60% 80% 100% For details about sectors that are prevalent in the Prince George economy, visit Cariboo Development Region Employment by Industry (2015) Wholesale and Retail Trade Manufacturing Healthcare and Social Assistance Accomodation and Food Services Construction Foresty, Fishing, Mining and Oil and Gas Educational Services Other Services Transportation and Warehousing Public Administration Finance, Insurance, Real Estate and Leasing Information, Culture and Recreation Professional, Scientific and Technical Services Business, Building and other Supportive Services 17.6% 11.8% 11.2% 8.2% 8.1% 7.3% 6.4% 5.4% 5.1% 4.6% 4.0% 3.7% 3.3% 3.2% SOURCE: Statistics Canada 0 1 3
4 COST OF DOING BUSINESS Corporate Taxes With federal, provincial and municipal tax rates among the lowest in the country, northern BC features businessoriented policies and corporate taxes. Combining the Prince George natural geographic advantage and local incentives makes the city a prime location for establishing and expanding business. 26% Prince George Combined Federal and Provincial Tax Rate 34% 32% 30% 28% 26% 24% 22% 20% Rate (%) Prince George (BC) Ontario New Brunswick Saskatchewan Manitoba Newfoundland and Labrador Nova Scotia Prince Edward Island Alberta Quebec SOURCE: Canada Revenue Agency *Quebec and Alberta do NOT have corporation tax collection agreements with the CRA. At 15.0%, Canada features a federal corporate income tax rate that is significantly lower than the United States at 35.0%. In addition to this national advantage, BC enjoys one of the most competitive provincial corporate tax rates at both small business and general levels. 2.5% Small Business 11% General Provincial Corporate Tax Rates 16% 14% 12% 10% 8% 6% 4% 2% 0% Prince George (BC)* Ontario Quebec Manitoba Alberta New Brunswick Saskatchewan Newfoundland and Labrador *The lower small business rate applies to active business income up to the BC business limit of $500,000. Nova Scotia Prince Edward Island General Small Business* SOURCE: Canada Revenue Agency 4
5 COST OF DOING BUSINESS Municipal Taxes Municipally, Prince George has maintained stable industry and business property tax rates that make opening and growing a business an attractive investment. $ Major Industry $ Light Industry $50 $40 $30 $20 $ $10 Business $0 Municipal Property Taxes (Per $1,000 of Assessed Value) $60 Major Industry Light Industry Business SOURCE: City of Prince George The Prince George competitive advantage also offers some of the best options for combined land prices and property tax rates in BC for Light Industrial land. Prince George Competitive Tax Advantage City Light Industrial Lower Light Municipal Industrial land price Tax/$1,000* (per acre, in $)** Upper Light Industrial land price (per acre, in $)** Prince George $ $150,000 $250,000 Kamloops $ $89,000 $700,000 Fort St. John $ $200,000 $250,000 Surrey $ $900,000 $1,500,000 Burnaby $ $1,300,000 $2,000,000 North Delta $ $1,200,000 $1,300,000 Richmond $ $1,650,000 $2,400,000 Actual Tax Cost ($) Tax Cost (per acre, in $) Prince George Kamloops Fort St. John Surrey Burnaby North Delta 0 Lower price (per acre) Upper price (per acre) Land Value SOURCE: * Government of British Columbia for Rates, ** prices from realtors in each community. Richmond 5
6 COST OF DOING BUSINESS Minimum Wage BC has the lowest minimum wage of all Canadian provinces and territories. Minimum wage ($/hr) $13.0 $12.5 $12.0 $11.5 $11.0 $10.5 Development Cost Charges Prince George utilizes competitive Development Cost Charges (DCCs) to fund capital projects that support new growth and are collected prior to building permit issue. Below is an illustration of how DCCs are applied in Prince George: $10.0 $9.5 $9.0 British Columbia Newfoundland and Labrador Saskatchewan New Brunswick Nova Scotia Quebec Prince Edward Island Manitoba Yukon Alberta Ontario Northwest Territories Nunavut Category Area A (includes the BCR, Danson and Carter Industrial Areas) Area B Area C (includes the Prince George Airport Authority) Area D (includes the downtown Central Business District) Commercial (per m 2 ) $32.28 $61.12 $35.33 $ Industrial (per ha) $53,250 $98,483 $51,448 $5,282 Institutional (per m 2 ) $24.31 $46.11 $26.72 $2.10 SOURCE: City of Prince George DCC s vary depending on the type of project and area. For confirmation of DCC s for a specific project and map of area, please consult the relevant DCC s Bylaws with the City of Prince George Planning and Development Department. DOWNTOWN PRINCE GEORGE Downtown Prince George is a hub for a variety of professional service organizations including banks, law firms, insurance companies, engineering firms, accounting services and more. The downtown core is also home to several locally owned boutiques, restaurants and pubs. Locals who live downtown enjoy the ease of walking to work and the convenience of public transportation. Featuring several development incentives and some of the lowest development cost charges in the city, the downtown core is an ideal location for both commercial and residential development. To connect with the Downtown Business Improvement Association, please visit their website. ( 6
7 BUSINESS INCENTIVES AND RESOURCES Competitiveness Consulting Rebate Northern Development Initiative Trust offers direct incentives for business locating or expanding in northern BC. The Trust's hallmark business support program is the Competitiveness Consulting Rebate, which provides a rebate to small and medium-sized companies to hire first-rate consulting services that will help them grow their businesses. The rebate is available for projects that focus on increased productivity, new or incremental revenues, profitability and/ or job creation. A rebate of up to 50% to a yearly maximum of $30,000 can be recovered for the cost of hiring an external business consultant. Many other programs are available at Prince George Business Directory The Prince George Business Directory is the only one of its kind and is available to all businesses in the city free of charge. The Business Directory is user-friendly, descriptive, searchable on Google, and provides an additional tool for people or companies to search for specific Prince George businesses. It can also act as a website for those companies that do not have the capacity to set up their own online presence. Explore the directory at directory.investprincegeorge.ca. Downtown Revitalization Tax Exemption In support of the objectives of the City s Official Community Plan, the City of Prince George has approved the Downtown Revitalization Tax Exemption Bylaw to assist with redevelopment projects in the downtown. Property owners who make a physical improvement to their downtown property can apply for a tax exemption equal to the amount of municipal property tax that would be payable on the incremental increase in assessed value attributable to the improvement. This exemption is available for a period of five years, with the option to apply for a further five year extension. Improvements eligible for this program are those with a construction value of $50,000 or greater. Multi-Family Housing Incentives Program This program offers tax exemptions and reductions in development cost charges for eligible multi-family developments (3 or more attached units) that are located in key growth areas. For more information, refer to the Development Incentives document. Façade Improvement Program The Prince George Downtown Business Improvement Association ( Downtown Prince George ) serves all the property owners and all the businesses/tenants in C1 Zone of Prince George. The Downtown Prince George Façade Improvement Program, in partnership with Northern Development Initiative Trust, can provide 50% reimbursement grant up to a maximum of $5,000 one time per building/project. Projects must have a minimum cost of $4,000 in order to qualify, but not exceed $200,000 in total. Business Financing Community Futures Fraser Fort George Community Futures Fraser Fort George provides business support to current business owners, and those considering becoming a small business owner, with accessing funding, creating a business plan, and accessing tools and resources for business development. Community Futures provides small business with business financing opportunities with loans up to $150,000, competitive commercial interest rates and flexible repayment schedule. Aboriginal Business and Community Development Centre Aboriginal Business and Community Development Centre provides business, community and economic development support to Aboriginal individuals, organizations and communities. This would include but is not limited to assistance with market research, business plan development, financial forecasting, small business loan acquisition, community economic development, economic development training and conference coordination
8 UTILITIES Business Resources Prince George delivers numerous competitive advantages related to municipal services, utilities and energy costs. The city is well serviced by multiple green and sustainable energy options for commercial and industrial businesses. Electricity BC Hydro supplies electricity for residents and businesses in Prince George. BC s electricity rates are among the lowest in North America. Prince George benefits from this clean and stable energy source compared to prices in other major Canadian urban centres for small, medium and large power uses. Natural Gas Cost of Electricity (in $/k W h) kW, 750 kwh 100kW, 25,000 kwh 500 kw, 100,000 kwh 5,000 kw, 2,340,000 kwh Power Demand (kw) and Consumption (kwh) 50,000 kw, 30,600,000 kwh Toronto, ON Edmonton, AB Prince George, BC Winnipeg, MB Fortis BC supplies natural gas sourced from northeastern BC. There are seven rate classes with related rate schedules for business and industry to choose from, depending on the type and amount of use. For more information refer to the Inland region rates that apply to Prince George for small and large volume commercial, institutional, and industrial rate schedules that are updated quarterly through the Fortis BC For Business & Industry website and key industry account managers website. Waste Management and Recycling The new province wide Multi-Material BC (MMBC) recycling program provides residential curbside recycling collection of packaging and printed paper. The fees associated range from 20 to 24 /kg for printed paper and from 25 to 70 /kg for packaging. Telecommunications Prince George s high quality, reliable telecommunications infrastructure ensures that residents and businesses are well connected. Wireless and fixed-line telephone and broadband services are available through several providers. SOURCE: Hydro-Quebec 8 8
9 UTILITIES Downtown District Energy System The biomass-based District Energy System (DES) provides heating for many key buildings in downtown Prince George while reducing 1,900 tonnes of greenhouse gases per year. The system takes what was previously considered waste heat from the Lakeland sawmill and transfers it via insulated piping to heat the downtown core of the city. The state of the art District Energy System provides economic and environmental benefits to the City of Prince George. Businesses located in the downtown area may be applicable to join the District Energy System. Economic Energy price certainty New non-tax revenue Reduce carbon tax payments Avoid capital costs for future facility upgrades Strengthen industry sustainability through partnerships Attraction for businesses Energy dollars remain in our community Environment Total net particulate matter reduction tonnes/year Total greenhouse gas reduction 1868 tonnes/ year It supports the mainstay of our economy forestry and is more cost-effective to implement than any of the other potential renewable energy sources 9 9
10 EDUCATION AND SKILLS TRAINING Prince George is home to the main campuses of the University of Northern BC (UNBC) and the College of New Caledonia (CNC), which provide a wide range of programming to aid in the development of a workforce with diverse skill sets to support business expansion across all industries. Furthermore, the post-secondary education sector has directly contributed $261 million to the city s economy in 2013, translating to an economic impact of $395 million. For more information, refer to the Healthcare, Social Assistance and Education Sector profile at University of Northern British Columbia Canada s Green University More than 60 academic programs including undergraduate, graduate and professional degrees as well as the Northern Medical Program which trains physicians in the north. One of four research universities in BC, UNBC has received more than $190 million in research funding. More than 4,100 students enrolled, including international students from 40 countries. Showcase for green energy: in August 2013, the Bioenergy Plant became the first university building in BC and the first building in the north to achieve LEED Platinum certification. UNBC and Harvard tied for #1 in campus sustainability projects in UNBC has been one of Canada s 50 greenest employers for three years in a row. In 2015, UNBC was awarded #1 small university in Canada by Macleans magazine, the same year as its 25th anniversary. The UNBC Northern Analytical Laboratory Services provides local public, private and non-profit sectors with their high quality services to help meet their research, development and quality assurance needs. College of New Caledonia (CNC) CNC offers more than 70 programs at its six campuses including health, sciences, trades, university studies and career access. Trades training and technology programs in areas ranging from natural resources to health sciences. CNC provides Red Seal trades training in welding, machining, millwrighting, carpentry, electrical, plumbing, heavy duty mechanics, autobody, power engineering, professional cooking and more. More than 5,000 students enrolled, including international programs. Collaborative programs: Northern Collaborative Baccalaureate of Nursing (CNC + UNBC) / Bachelor of Fine Art (CNC + Emily Carr). CNC was home to 310 international students in 2014 with the largest intake of new students in the college s history. As the longest standing post-secondary institution in northern BC, CNC has provided education to over 100,000 students since its inception in CNC offers one of the lowest tuition rates in BC, enabling students to save thousands of dollars on the cost of education. 10
11 TRANSPORTATION Key transportation connections include: Road: Prince George is located at the junction of major provincial Highways 97 (north-south) and 16 (east-west). This access to regional markets and resource-related projects offers cost savings from reduced fuel and lack of congestion. Air: The Prince George Airport (YXS) has the fourth longest runway in Canada (11,450 feet) and features international passenger and cargo capability. Businesses utilize daily scheduled service to Vancouver that only takes an hour, plus direct service to other regional centres in BC. Marine: The Port of Prince Rupert, located 722 km (449 miles) west of Prince George, is North America s closest port to key Asian markets by up to three days it is 36 hours closer to Shanghai than Vancouver and over 68 hours closer than Los Angeles. The efficient 750,000 TEU operation capacity container terminal is in development to quadruple terminal capability to support the flow of global trade. Rail: CN Rail expanded its Distribution Centre to address growing container volumes bound for Asian markets. Increasing capacity in the CN Intermodal Terminal is meeting trade growth by providing connectivity to North America and global markets that are both efficient and cost-effective via the transcontinental CN Rail line. For more information refer to the Transportation and Logistics Prospectus 82RAIL HOURS FROM CHICAGO RAIL HOURS FROM PRINCE RUPERT 17 HOURS CLOSER TO ASIA THAN OTHER 12-40WEST COAST PORTS 12-26TRUCK HOURS ACCESS TO NORTH AMERICAN MARKETS CONNECTED TO DOMESTIC & INTERNATIONAL MARKETS 11 11
12 City of Prince George - Economic Development 1100 Patricia Blvd. Prince George, British Columbia, Canada V2L 3V9 Tel Disclaimer: The data provided in this document has been collected from a variety of sources and is deemed to be accurate and up-to-date at the time of publication. Please report errors or omissions to City of Prince George - Economic Development. City of Prince George - Economic Development does not accept responsibility or liability for information and those using the material should verify it with other sources to ensure that it is correct and current. 12
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