ADVANTAGES OF BEING A MID-SIZED CITY: SUCCESS IN THE MIDDLE

NRU
May 24, 2017
Sarah Niedoba

Mid-sized cities are becoming increasingly attractive—with their cheaper rent and a lower cost of living—to entrepreneurs who have been priced out of hubs like Toronto and Vancouver.

“One of the challenges that Hamilton faces, is its ability to convince investors of the opportunities it has to offer,” Hamilton planning and economic development general manager Jason Thorne told NRU. “A lot of our economic strategy focuses on that—talking directly to entrepreneurs and investors, and convincing them to locate here.”

According to Thorne, one of the greatest advantages a mid-sized city can have is affordability. “The cost of renting and buying space is less here than it is than in say, Toronto,” he says. “It makes starting a business doable for a lot of people who might not be able to start one otherwise.”

Affordability means that a mid-sized city is attractive to businesses both for the low start-up costs, and for the high rate of livability for workers. “This is a place that businesses can attract their work forces to live,” says Thorne.

According to Victoria development and community planning director Jonathon Tinney, Victoria also attracts entrepreneurship through its affordability (at least in comparison to its neighbour, Vancouver).

“As with Hamilton— which is seeing a boom in its housing market, as people are priced out of its neighbour, Toronto—we’re seeing a similar situation with people being priced out of Vancouver,” he told NRU.

“A lot of mid-sized cities will leverage their proximity to a bigger city down the road,” says Tinney. “It means that mid-sized cities are able to offer the lifestyle benefits of a smaller city, while still being close enough that people can connect with those larger centers.”

When it comes to fostering economic development in mid-sized cities, both Thorne and Tinney refer to regulation as a double-edged sword.

“From a business perspective, it’s a hurdle that we need to jump over, but from a public perspective, it’s the glue that holds things together and makes sure businesses work in harmony,” says Tinney. “We try to find a balance—we ask ourselves what is it that we’re trying to regulate, what is it that we’re trying to do with this regulation, and if we can’t come up with a ready answer, then it’s probably something that needs to be trimmed back.”

Thorne agrees, saying that when it comes to regulation, there needs to be constant evaluation.

“Are these in the public interest? Are these supportive of our growth goals?” he asks. “We’ve taken measures to streamline our urban development approvals process in the past year—we have to make sure that we continue to have a process in place that allows businesses to get started as quickly as possible.”

Ultimately, both agree that  mid-sized cities in Canada are seeing a renewed interest, as business owners look at where they want to locate next—and that this is something for cities to capitalize on.

“Mid-sized cities are  certainly having a bit of a moment,” says Thorne. “We’re seeing more and more discussion about it on a planning level, people talking about how to push the advantages that we have into the public eye. Hopefully, we’re on our way to doing that.”

Thorne and Tinney will both speak this week at City Age Hamilton. The annual multi-city conference is being held by CityAge, in partnership with McMaster University and Evergreen.