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CANON DUMPS SUBURBS FOR 'A GREAT VIEW'
Move Downtown Resists Corporate Exodus To The 905
Chris Wattie
National Post
Wednesday, August 29, 2007
One of Canada's biggest companies opened a headquarters in Toronto yesterday, bucking a business trend by moving some 300 jobs from suburban Markham to the downtown core.
Canon Canada's decision to relocate the head offices of its business solutions division to Bloor Street is believed to be the biggest single job shift from the 905 region to Toronto in more than five years.
But the company did it without any help from City Hall.
City officials are pleased at the news, but acknowledge that far from offering the office machine giant any incentives to move downtown, they never even met with Canon to discuss the move.
Kyle Benham, director of business development and retention for the city, said Toronto does not offer tax breaks or other plums to lure businesses to locate downtown, instead preferring "soft support" -- meeting with companies to offer non-monetary support for a move to Toronto.
But he acknowledged that Canon did not get that support. "We don't deal with everyone," he said. "If they need help and we can provide it to them, we do."
Mason Olds, a senior vice-president of Canon Canada, said the company had its own reasons for moving its $275-million direct sales division downtown and did not seek any incentives from the city, soft or otherwise.
Mr. Olds said Canon decided to swim against the corporate tide of shifting to the 905 region because the city is "where the action is."
"Most of our large customers, like all of the major banks for instance, are downtown," he said during a break in the company's gala opening at the Four Seasons on Avenue Road. "We thought it was the prudent thing to do: You've got to go where the customers are."
"They drop in a lot. They want to see the newest technology ... see what the latest equipment is. That's been a big advantage to the new location."
But critics have said there are big disadvantages to locating in Toronto, especially higher taxes. The city's office tower coalition has calculated that businesses in the city pay about $1-billion more in taxes than they would if they were in the suburbs.
As a result, since 1990, Toronto has lost 100,000 jobs, whereas the 905 region has gained 850,000 jobs, City of Toronto figures show. The 905 region surpassed the city in total number of jobs three years ago, and the suburbs now employ 1.55 million people, 150,000 more jobs than the city.
Toronto last year adopted a plan to make its business taxes competitive with neigbouring municipalities, by slowly increasing residential taxes and lowering business rates over 15 years.
Canon Canada's office has been located in Markham since 1973, but Mr. Olds said that as outlying cities and suburbs in the GTA become more crowded, downtown Toronto has become more attractive, despite higher municipal taxes and other costs.
"I'm surprised more people don't make the move ... Toronto has a lot to offer," he said. "Our employees like the idea of being downtown -- they don't have to fight the traffic on the commute to and from work for one thing."
Canon chose its new headquarters, at the corner of Church and Bloor streets, in part because the building is "green friendly." but Mr. Olds admits with a smile that there were other factors at play. "It's a great view, which I like."
CANON DUMPS SUBURBS FOR 'A GREAT VIEW'
Move Downtown Resists Corporate Exodus To The 905
Chris Wattie
National Post
Wednesday, August 29, 2007
One of Canada's biggest companies opened a headquarters in Toronto yesterday, bucking a business trend by moving some 300 jobs from suburban Markham to the downtown core.
Canon Canada's decision to relocate the head offices of its business solutions division to Bloor Street is believed to be the biggest single job shift from the 905 region to Toronto in more than five years.
But the company did it without any help from City Hall.
City officials are pleased at the news, but acknowledge that far from offering the office machine giant any incentives to move downtown, they never even met with Canon to discuss the move.
Kyle Benham, director of business development and retention for the city, said Toronto does not offer tax breaks or other plums to lure businesses to locate downtown, instead preferring "soft support" -- meeting with companies to offer non-monetary support for a move to Toronto.
But he acknowledged that Canon did not get that support. "We don't deal with everyone," he said. "If they need help and we can provide it to them, we do."
Mason Olds, a senior vice-president of Canon Canada, said the company had its own reasons for moving its $275-million direct sales division downtown and did not seek any incentives from the city, soft or otherwise.
Mr. Olds said Canon decided to swim against the corporate tide of shifting to the 905 region because the city is "where the action is."
"Most of our large customers, like all of the major banks for instance, are downtown," he said during a break in the company's gala opening at the Four Seasons on Avenue Road. "We thought it was the prudent thing to do: You've got to go where the customers are."
"They drop in a lot. They want to see the newest technology ... see what the latest equipment is. That's been a big advantage to the new location."
But critics have said there are big disadvantages to locating in Toronto, especially higher taxes. The city's office tower coalition has calculated that businesses in the city pay about $1-billion more in taxes than they would if they were in the suburbs.
As a result, since 1990, Toronto has lost 100,000 jobs, whereas the 905 region has gained 850,000 jobs, City of Toronto figures show. The 905 region surpassed the city in total number of jobs three years ago, and the suburbs now employ 1.55 million people, 150,000 more jobs than the city.
Toronto last year adopted a plan to make its business taxes competitive with neigbouring municipalities, by slowly increasing residential taxes and lowering business rates over 15 years.
Canon Canada's office has been located in Markham since 1973, but Mr. Olds said that as outlying cities and suburbs in the GTA become more crowded, downtown Toronto has become more attractive, despite higher municipal taxes and other costs.
"I'm surprised more people don't make the move ... Toronto has a lot to offer," he said. "Our employees like the idea of being downtown -- they don't have to fight the traffic on the commute to and from work for one thing."
Canon chose its new headquarters, at the corner of Church and Bloor streets, in part because the building is "green friendly." but Mr. Olds admits with a smile that there were other factors at play. "It's a great view, which I like."
