Oliver Paipoonge rolls out the red carpet for new business in expanding industrial park.

A bedroom community near Thunder Bay is rolling out the red carpet to lure new business to its expanding industrial park.

The municipality of Oliver Paipoonge, a sprawling rural community of 5,800 on the western outskirts of Thunder Bay, is adding 40 acres onto its Rubin Industrial Park to encourage companies to move out to the 'burbs'."

The amalgamated township of three villages--Kakabecka Falls, Murillo and Rosslyn have become a magnet for value-added forestry firms thanks to low property taxes and an 'Open for Business' attitude.

The municipality is already home to Superior Thermowood and Haveman Brothers Forestry Ltd., while the original eight-lot industrial park includes commercial enterprises such as Precision Wood Design, Murillo Millworks and their newest tenant, LH North General Contracting.

LH North owners David Heyens and Tom McClement are packing up from their rented Squier Place location in Thunder Bay's inner city and moving to Murillo.

The business partners took possession of some property in early December after a fruitless search in Thunder Bay to find affordable light-industrial land that fit the needs of their six-employee contracting firm.

The cost of their two-acre Murillo lot was $215,000. "That's pretty cheap considering what you pay in Thunder Bay."

With the next phase of the industrial park now in the planning stages, they're interested in buying a lot there too.

After scouting some of the outlying communities, they received a warm reception from Oliver Paipoonge municipal officials.

"We contacted them because we know a few businesses out there and, man, did they ever make you feel like family," says Heyens, who worked in construction for 15 years before spinning off his own business.

Both Heyens and McClement were named last September as Outstanding Young Entrepreneurs at a Thunder Bay Young Professionals Network Awards function.

The pair also found light-industrial property taxes in Murillo were one-fifth of that of the City of Thunder Bay. The tax bill for their Thunder Bay office comes to $25,000 annually, while Oliver Paipoonge's amounts to $6,500.

Among the incentives for their move to Murillo is an exemption from half-load restrictions on local roads if they are an industrial park tenant.

Although there's no municipal water and sewer connections there, Heyens says that's not a problem.

Their small contracting business operates on well water and a septic tank system. They do have gas, hydro, a paved road and easy access to the Trans-Canada and all other major highways. Heyens is almost certain more businesses will follow them once the park expands.

"We didn't make this decision lightly All things being equal, we definitely would've stayed in Thunder Bay."

But the more business-friendly environment was too good to pass up.

The only downside to the move, albeit a minor one, is a 15minute daily commute from Thunder Bay to Murillo.

"Oliver Paipoonge had the welcome mat rolled and Thunder Bay didn't. That's the bottom line."

The township has preliminary plans drawn up for seven lots ranging from two to nine acres, although lot sizes could be customized per any client's request.

Mayor Lucy Kloosterhuis expects the cost of servicing the new lots, sewer and water to be in the $500,000 range.

She's optimistic Northern Ontario Heritage Fund infrastructure funds will be available to offset development costs once they have two committed buyers, which, she says, shouldn't be a problem.

Kloosterhuis expects to announce more good news in the coming months after talking with two more businesses expecting to relocate.

"They felt the decrease in taxes was well worth moving."

The municipality also expects to hire an economic development intern to market the new lots and handle inquiries.

She's careful in saying they're not trying to steal business from Thunder Bay, but if a company wants to re-locate, the township will do everything possibly to expedite the approvals process.

"I've worked really hard to get larger businesses to come in. Even if we don't have the land, we'll help them find vacant land out there," says Kloosterhuis. She finds when a business moves in, employees and their families usually follow.

By IAN ROSS 

Northern Ontario Business