Calgary To Boost Industrial Development With New Incentives, Action Plan

Calgary’s city leaders have unveiled a new Industrial Action Plan aimed at fueling growth in the industrial sector. The plan is part of an updated Citywide Growth Strategy and introduces a proposed incentive program, faster approval processes, and changes to land-use and zoning rules. The goal is to draw in more businesses in sectors like manufacturing, warehousing, transportation, and logistics.

Industrial activities already play a big role in Calgary’s economy. In 2024, they generated nearly $19.7 billion, or about 16 percent of the city’s GDP, and supported roughly 53,500 jobs. Over the past decade, industrial properties have grown from 21 percent to 34 percent of Calgary’s non‑residential tax base, as downtown office values have dropped.

City staff concluded that high charges like off‑site levies and property taxes have made developing industrial land inside Calgary more expensive than in nearby areas. As a result, opportunities have been missed. Without enough new development, the city also misses out on school reserve fees and cash‑in‑lieu contributions to help fund local schools.

To fix this, the Action Plan aims to modernize policy and boost flexibility. It proposes updating industrial land-use rules, investing in related infrastructure, and launching both development and property tax incentives. The city also plans to monitor the plan’s progress and make adjustments based on results.

Officials estimate that if Calgary incentives are applied to develop about 100 hectares of industrial land over two years, by 2031 this could create around 2,400 new jobs and add about $540 million in GDP. It could also bring in $63.6 million in off‑site levy revenue and $13.5 million in property tax growth. These gains will build on the $7 billion impact and 30,000 jobs expected from the Prairie Economic Gateway logistics hub project.

On June 4, the city’s Infrastructure and Planning Committee endorsed the plan. It was formally approved by Calgary City Council on June 24, 2025. Supporters say Calgary has strong advantages—such as access to workers, transit links, power and water services, and airport access—that make it ideal for attracting key industrial sectors like agribusiness, aerospace, and logistics. This push marks a clear signal: Calgary wants to strengthen its industrial base, diversify its economy, and keep pace with neighbouring areas. With clearer rules, financial incentives, and infrastructure support, the city hopes to lower business costs and encourage development inside city limits. If successful, this plan could reshape Calgary’s economic landscape for years to come.