Med school status, retail boom flames optimism: Thunder Bay mayor optimistic over economic prospects for the city. (Special Report: Thunder Bay).

Midway through one of the toughest terms a Northern Ontario mayor has ever had to endure, Ken Boshcoff remains confident about Thunder Bay's economic prospects, and has placed economic development at the top of his list of priorities.

The longtime city politician, who is in his second term as mayor, pulls no punches in criticizing those who he thinks are directly damaging the city, or those who have the power to do something to assist the area and are not.

Boshcoff does not talk about his political future, but he has indicated he will be a candidate for president of the Association of Municipalities of Ontario.

Being mayor of Thunder Bay brings with it a regional leadership role. Thunder Bay's population, 109,016, according to the 2001 census, is almost seven times larger than any other municipality in the northwest. With the exception of Kenora, which has a population of 15,838, Fort Frances with 8,315 and Dryden with 8,315, all other communities have a population less than 5,000.

Some of the smaller communities in the northwest are totally dependent on the softwood lumber industry, and it accounts for significant economic activity in most, including Thunder. Bay that has many direct and indirect jobs dependent on softwood.

Industry leaders say thousands of jobs are at stake and there may be massive layoffs in Northern Ontario, starting in the early summer if the lumber market in the United States cannot absorb the steep duties imposed on Canadian imports.

Many municipalities in the northwest, including Thunder Bay, have passed council resolutions urging the federal government not to negotiate with United States on the softwood issue. Boshcoff says the federal government "must get furiously active (in the dispute). If that means counter measures for our energy exports or other commodities, so be it."

'We must fight back."

Boshcoff says Thunder Bay is a major supply centre for the northwest region and this role is increasing with several more big box stores under construction in the city. Costco and Home Depot have construction underway on their new stores.

Mary Long-Irwin, president of the Thunder Bay Chamber of Commerce, says shoppers from First Nation communities are becoming "increasingly important" to the city's retail trade.

Thunder Bay is defying a national trend of retail decline.

"Retail shopping is up 11 per cent," Boshcoff says. "Someone must have faith."

Boshcoff says the dysfunctional council in Thunder Bay "cost the city millions in productivity and innovation. We have also lost experienced professional administrators."

Long-Irwin, a vocal critic of council decisions, says that the chamber has "learned to work with those few councillors and the mayor who understand how important economic development is to the community's future."

Long-Irwin cites the work carried out by a first-term councillor to obtain the equal status medical school for northwestern Ontario, as an example.

The recent speech from the throne confirmed that Lakehead University in Thunder Bay and Laurentian University in Sudbury have equal status in the new northern medical school.

"The medical school decision fans the flames of optimism in northwestern Ontario," Boshcoff says.

Council's scrap with the business community crystallized when it denied a city administration request to spend funds on providing infrastructure for valuable waterfront property. This decision followed the cancellation of a $180-million waterfront development earlier this year after the developer failed to meet expectations.

"Waterfront development is on hold," Boshcoff says, "but there has been recent serious expressions of interest."

The most recent industrial development in Thunder Bay is not, however, taking place on city-controlled land. The Fort William First Nation's (FWFN) Mission Industrial and Commercial Park has a sawmill under con struction for a new tenant, and is the "preferred location" for a large multiphase alternative energy project.

These developments and future developments on First Nation land may have long-term tax implications for the city. It is expected tenants will pay the FWFN a fee for municipal services that the First Nation will purchase from the city.

Thunder Bay International Airport has a new subdivision that will attract new business to the city. Work to develop the 10- hectare subdivision will be gin later this year.

The first tenant will be Confederation College with plans for an Aviation Centre of Excellence for the airport property. The college plans to open its centre for September 2003 classes.

Thunder Bay city council may abandon the original concept of a "prestige business park" and turn the property into a truck plaza to service the needs of truckers.

"There's been a keen interest by oil companies in establishing a trucking centre in the city," says Rene Larson, a Thunder Bay city councillor. Larson's idea for the park. prompted the city's economic development department to study the concept.

Tourism Thunder Bay also has some new offerings. A harbour cruise on the Pioneer 11 will begin in late June and there is a Founder's Museum just outside the city that is growing in reputation.

Boshcoff says Thunder Bay has ambitious road and infrastructure projects underway, including the new $200-million hospital, a $42-million secondary waste treatment plant and two major bridges.

"We have all the combinations," Boshcoff says, including medical, cultural, educational, recreational and commercial.

Thunder Bay Top Employers

    Organization                   Sector                # empl.

1.  City of Thunder Bay            Municipal Government    2,700
2.  Lakehead Board of Education    Education               2,000
3.  Thunder Bay Regional Hospital  Health Care             1,986
4.  Government of Ontario          Provincial Gov't        1,702
5.  Lakehead University            Education               1,600
6.  Buchanan Group                 Forest Products         1,345
7.  Bowater Pulp and Paper Inc.    Pulp and Paper          1,300
8.  Bombardier                     Manufacturing             800
9.  Lakehead District Roman        Education                 741
    Catholic School Board
10. Confederation College          Education                 718
11. Federal Government             Federal Government        653
12. Cascades Fine Papers Group     Specialty Paper           622
    Thunder Bay Inc. (formerly
    Provincial Papers)
13. Canada Safeway Ltd.            Retail/Grocer             575
14. RMH Teleservices Inc.          Teleservices              500
15. Thunder Bay Charity Casino     Charity Casino            460
16. McBay (McDonald's) Restaurant  Restaurant                425
17. A&P Food Stores                Retail/Grocery            411
18. Abitibi Consolidated           Paper Mill                400
19. Westfair Foods                 Wholesale/Grocery         400
20. Bearskin Airlines              Air Transportation        375

Source: Development Thunder Bay (http://devtbay.city.thunder-bay.on.ca)