Chatham-Kent's economic recovery could include at least $2 million in aid from the municipality.
That's one of the several recommendations from the task force chosen to help local businesses rebound from the COVID-19 crisis and help pave the way to a better future.
Taskforce Co-Chair Mike Grail said the $2 million in property tax forgiveness and grants is a minimum and could be expanded if needed to restart the local economy in the short-term after emergency orders are lifted. The financial aid is for businesses that can't re-open because of the strict safety guidelines imposed by the government.
A report stated that the aid program should be funded by selling assets, reducing services or infrastructure that are under-used, freezing municipal wages, or by using reserves and should not be funded through a tax increase. It also suggested that any funding for COVID-19 recovery from upper levels of government should go towards supporting economic recovery outlined in the municipal growth strategy.
Accessing the grant and tax forgiveness program would be based on need and established criteria.
"The economic impact of C-19 is monumental. Business owners have needed to adapt and change in order to survive now in this new reality. Yet some small businesses and entrepreneurs have not been able to adapt or pivot and are unable to open. The strict government guidelines to save lives have devastated these people’s livelihoods," stated the report presented to council.
Council was told that economic support for small businesses is urgently needed.
"Businesses cannot afford tax increases when they have been hit so hard economically. CK cannot afford to continue to maintain as many programs, buildings, bridges, roads, as well as other infrastructure. Staff reductions should be included in service level reductions. Wages for both union and non-union staff could be frozen in 2021, if required," wrote the task force.
Some business owners are telling the task force they may not open in three to six months because the challenge is too big to overcome. Roughly 30 per cent of businesses surveyed in May said they will run out of operating money in a month or less.
"This will have a direct impact not only on people’s livelihoods, but also on the services available in our community, and on tax revenues collected," reported the task force. "Everyone will feel the impact in one way or another."
The task force said businesses will need to change in innovative and creative ways or be left behind to die.
"It is clear that consumer habits are evolving. The way products and services were offered previously will not likely be elements of a successful business model post C-19. Businesses will never be the same; we all must try to understand the changes that are happening and determine how best to adapt in this new world."
There are also other short-term issues to tackle before people return to work such as child care, mental health, and safety guidelines. Council is also being urged to lobby upper levels of government for more funding. CAO Don Shropshire also said high-speed fibre optic and broadband internet is coming to help businesses.
In the mid to long-term, the task force is asking council to create industrial and residential growth by centralizing sites to provide the best access to the workforce and housing. The municipality is also being encouraged to find a balance between quality of life and future growth to attract more people to Chatham-Kent and allow staff to work from home permanently to reduce office space and buildings. Mayor Darrin Canniff said there's already a lot of interest coming from employees in the Toronto area about moving to Chatham-Kent and working from home because they can buy "twice the house for half the price" and that's something the municipality will try to take advantage of in the future.
A review of the agriculture and food processing sector is also suggested to build on the local $3 billion industry.
Council is also being asked to focus on the big picture when it comes to decision-making.
"Our goal is 'We are CK' –where decisions are made to better the whole of CK. We acknowledge that this can be challenging for Councillors who have to balance the needs of their wards while thinking of the whole," wrote the authors of the report.