BUSINESS INVESTMENT GUIDE CANADA USA. City of Prince George - Economic Development Tel ALASKA YK NUN NWT
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1 ALASKA [USA] YK NUN NWT BC Prince George AB Pacific Ocean SASK CANADA QUE MAN ONT Vancouver Seattle USA City of Prince George - Economic Development Tel 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 323,000 people and represents 50% of all capital investments in BC proposed in the northern region. Growth Statistics (since 2009): Average annual economic growth: +4.73% Total population: +1.4% Total employment: +9.4% Average annual total employment growth: +0.3% Total business location counts: +5.0% Average annual building permit total value: +14.5% Average home price: $275,353 (+17.0% total increase) Airport traffic: 425,000 travelers (+13.5% total increase) Population/Demographics: City of Prince George: 74,133 City of Prince George, CA: 86,617 Population under the age of 55: 73% (versus 70% for BC) Regional District of Fraser-Fort George: 94,351 Northern BC trading area: 323,186 Photo Credit: UNBC/Tim Swanky 2
3 WORKFORCE AND ECONOMIC DRIVERS Workforce Main Sectors Employment Growth ( ) The Construction industry, a key provider of project support for local and regional development, benefits from experienced companies, a skilled workforce and highquality building materials such as lumber, asphalt, steel and concrete. Construction 61% A growing workforce is meeting needs required for resource development in Forestry and Pulp & Paper, Mining, and Energy & Bioenergy. Traditional and innovative needs are met by a skilled and stable workforce trained from within and attracted to the urban amenities of the growing city of Prince George. Manufacturing activities related to wood and paper products in Prince George and the city s central location in one of the largest pellet-producing regions in the world are expanding the employment base in Manufacturing. Production activities also include machinery & equipment, chemicals & plastics, and food & beverage manufacturing. Professional, Scientific and Technical based businesses in Prince George are strategically positioned to provide services for major projects underway and proposed in northern BC, as well as supporting the local and regional growing economy. Forestry, Mining and Oil & Gas 39% Manufacturing 14% Professional, Scientific & Technical Services 29% Transportation and Warehousing services in Prince George provide the ideal location and logistics options for supporting international and domestic trade including, but not limited to: the Prince George International Airport, CN Intermodal Terminal, transportation depots, truck terminals, warehousing and storage, freight forwarding, as well as specific retail and other supply activities. The Wholesale & Retail Trade sector sustains a strong presence in Prince George due to the city being the largest in the region and the shopping centre for communities in central and northern BC. Transportation & Warehousing 70% Wholesale & Retail Trade 21% For details about sectors that are prevalent in the Prince George economy, visit Prince George Employment by Industry (2013) Wholesale & Retail Trade Healthcare & Social Assistance Accomodation & Food Services Construction Transportation & Warehousing Manufacturing Educational Services Other Services Public Administration Foresty, Fishing, Mining and Oil & Gas Professional, Scientific & Technical Services Finance, Insurance, Real Estate & Leasing Information, Culture & Recreation 20% 12% 10% 10% 7.5% 7.5% 6% 5% 5% 5% 5% 4% 3% SOURCE: Statistics Canada
4 COST OF DOING BUSINESS Corporate Taxes With federal, provincial and municipal tax rates among the lowest in the country, northern BC features business-oriented 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. Combined Federal and Provincial Tax Rate (%) 34% 32% 30% 28% Rate (%) 26% 24% 22% 20% Prince George (BC) Alberta New Brunswick Saskatchewan Manitoba Ontario Quebec Newfoundland and Labrador Nova Scotia Prince Edward Island SOURCE: Canada Revenue Agency 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. Provincial Corporate Tax Rates 16% 14% 12% 10% 8% Small Business* General 6% 4% 2% 0% Prince George (BC)* Alberta Saskatchewan Manitoba Ontario Quebec *The lower small business rate applies to active business income up to the BC business limit of $500,000. Newfoundland and Labrador 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. Prince George Total Municipal Taxes in $ Major Industry Light Industry Business SOURCE: City of Prince George per $1,000 assessed value 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 Municipal Tax/$1,000* Lower Light Industrial land price (per acre, in $)** Upper Light Industrial land price (per acre, in $)** Kamloops $ $89,000 $700,000 Prince George $ $150,000 $250,000 Fort St. John $ $200,000 $250,000 Surrey $ $900,000 $1,500,000 Burnaby $ $1,300,000 $2,000,000 Delta $ $1,200,000 $1,300,000 Richmond $ $1,650,000 $2,400,000 Actual Tax Cost ($) Prince George Tax Cost (per acre, in $) Richmond Burnaby Surrey Delta Kamloops Lower price (per acre) Upper price (per acre) Fort St. John Land Value SOURCE: * Government of British Columbia for Rates, ** prices from realtors in each community. 5
6 COST OF DOING BUSINESS Minimum Wage BC has one of the lowest minimum wages of all Canadian provinces and territories. Minimum wage ($/hr) $11.00 $10.80 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: Category $10.60 $10.40 $10.20 $10.00 $9.80 $9.60 $9.40 $9.20 $9.00 Area A (includes the BCR, Danson and Carter Industrial Areas) NWT New Brunswick Saskatchewan Alberta British Columbia Area B Quebec Prince Edward Island Nova Scotia Nfld. & Ld. Area C (includes the Prince George Airport Authority) Manitoba Yukon Nunavut Ontario Area D (includes the downtown Central Business District) Commercial (per m 2 ) $32.29 $61.12 $35.33 $3.62 Industrial (per ha) $53,250 $98,600 $51,448 $8,046 Institutional (per m 2 ) $24.32 $46.13 $26.73 $2.66 SOURCE: City of Prince George DCCs vary depending on the type of project and area. For confirmation of DCCs for a specific project, please consult the relevant DCC Bylaws with the City of Prince George Development Services Department. Business Immigration The Provincial Nominee Program (PNP) accelerates the permanent residence application process for individuals who can establish themselves in BC and develop a business that will provide significant economic benefits to the province. Investing in a region outside of the Vancouver and Abbotsford metropolitan areas falls under the Regional Business category and requires a lower investment threshold. The minimum investment required to establish, or purchase and expand an eligible business is $200,000, just half of the $400,000 that is required within the Vancouver and Abbotsford metropolitan areas. The Regional Business Succession Option can apply to those who purchase and manage an existing BC business. This category offers priority processing and includes reduced job creation requirements. Visit for more information about BC s business immigration programs. 6
7 COST OF DOING BUSINESS 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. 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 a 25% 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. City Business Licenses There is a broad range of Business License costs depending on the specific activity. The submission takes approximately 7 to 10 business days to be reviewed and processed once all approvals have been obtained. For specific license information contact the City of Prince George Business License Division directly. The BizPal online resource provides information on the permits and licenses you may require when starting or operating a business. 7
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) $0.18 $0.16 $0.14 $0.12 $0.10 $0.8 $0.6 $0.4 $0.2 $0.0 6kW 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. Bioenergy Prince George is home to unique and innovative carbon neutral green energy technology including the District Energy System (DES) in the downtown, which serves eight buildings including the new $38.9 million RCMP headquarters and the Wood Innovation and Design Centre (WIDC). 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: BC Hydro 8
9 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 direct service to Vancouver and Calgary that takes only 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 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. 9
10 EDUCATION AND SKILLS TRAINING College of New Caledonia (CNC) CNC offers more than 50 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. 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. 10
BUSINESS INVESTMENT GUIDE
BUSINESS INVESTMENT GUIDE 1 Prince George, British Columbia, with a population of 74,003, is the largest city in the region of nearly 320,000 people that it serves. Prince George averaged 2.2 per cent
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