ATIKOKAN – The Government of Canada is investing $1 million to develop and diversify the economy through its FedNor Northern Development Program.
According to the Atikokan Economic Development Corporation's executive director, Garry McKinnon, the program receiving the money is a capital investment fund where businesses in the municipality can access support for development, expansion, and job creation.
McKinnon said the AEDC offers capital investment funding to local businesses in the form of loans. With 80 clients accessing the investment fund, AEDC has given out around $6 million, putting the investment fund at risk of being depleted.
The municipality applied to FedNor for a capitalization top-up was necessary to ensure that businesses in the Atikokan have access to the investment fund.
“The fact of the matter is our activity levels over the last five years have averaged over a million dollars in loans per year in the principal, and interest payments are a lot of money," McKinnon said.
"We're averaging $600,000 a year, but that still leaves a $500,000 gap to fill the demand. So, that's why we require capitalization. It's not that we're not getting the money back, we're just not getting it back fast enough to fill the pipeline.”
The AEDC investment fund goes a long way in an uneasy marketplace. During the COVID-19 pandemic, McKinnon said that the AEDC was providing business owners with COVID relief loans.
“We did about just shy of $600,000 in COVID relief loans,” McKinnon said.
Because of the sheer impact of the pandemic, the massive amount of inflation and the instability in the market, the AEDC expected that around 50 per cent of those relief loans were going to be paid back.
However, the resilience of Atikokan’s business sector remains strong.
“I'm happy to say that by the end of next week, we expect we will have 100 per cent of those paid back,” McKinnon said.
As for the $1 million capitalization top-up, Atikokan economic development has a bright future ahead, including new enterprises such as the Waasigan Transmission Line and over 20 different mineral development projects in various stages of exploration in the Atikokan area. The AEDC is ready to help if needed.
In the application, we spoke at length about the energy development, both the new Waasigan Line, which will go right through Atikokan and there's going to generate a great deal of activity. Also, the Steep Rock Pump Storage Project has been on the books for about 17 years. That's a $2.4 billion investment if it goes ahead," McKinnon said.
“But in addition to that, there are at least two dozen mineral exploration projects taking place between Kashabowie and Mine Center, which is essentially our service area. Now, they're not all going to turn into mines but one or two is all it takes and that changes the economy substantially in a community of our size."
Another potential development project McKinnon mentioned is Resolute buying vacant lots to add to the housing stock.
With the placement of Ukraine refugees in Atikokan, Resolute has employed many at the sawmill.
“They're going to work with the Ukrainian refugees to help them establish homes in the community. It's 12 houses, doesn't seem like a lot, but it's a hell of a lot for Atikokan, that's for sure. It also attracts builders and it's good for building centres and that sort of thing. It adds to the tax base. We've got to be honest about that as well."
Thunder Bay-Rainy River MP Marcus Powlowski, who made the announcement on behalf of the Minister responsible for FedNor, Patty Hajdu, said the AEDC works to maintain and recruit business in the local community.
“This investment in the Atikokan Economic Development Corporation will help drive economic success in Northwestern Ontario. These FedNor funds are going to help create opportunities and build on existing opportunities in the Atikokan area, and will help to continue building a strong local regional economy," Powlowski said in the media release.
