Occupancy at the Western Sarnia-Lambton Research Park is rebounding, while a new strategic plan is in the works to encourage future growth and sustainability.
Research Park Executive Director Dr. Katherine Albion provided an update on current operations during Wednesday's county council meeting.
She said occupancy is currently at 72 per cent, a 15 per cent increase since May 2024.
"With the new tenants at the park we are on our path to financial sustainability and we are grateful to county council for its support," she said.
The park saw a decrease in revenue in 2023 and 2024 due to a large amount of office space being returned as tenants adopted a work-from-home model or established their own sites.
"The grants that were provided by Lambton council have been applied to the line of credit to reduce the bank fees payable and the line of credit is used to cover the shortfall of revenue over expenses," Albion said. "As mentioned, based on the current leasing trends in our financial model, we anticipate that we will reach financial sustainability in 2026 when we reach our break even point."
Lambton County General Manager of Finance, Facilities, and Acquisitions Larry Palarchio said the shortfall as of April 30, 2024, amounted to about $2 million, but noted that other research parks have experienced the same types of financial challenges.
Albion said they are currently speaking with new companies interested in available spaces for chemistry and battery research and air quality monitoring.
Meanwhile, consultants are currently developing a five-year economic development plan which will include current trends and best practices, an analysis of existing assets, and stakeholder feedback.
"They are undergoing a number of interviews with the stakeholders that we have at Western [University] and looking at how to strengthen these relationships and create more value for all of the parties involved," Albion said.
Councillors will also be able to provide input during a meeting on February 19.
The strategic plan is scheduled to be completed and implemented in the spring.
While the update provided encouraging news, Warwick Township Mayor Todd Case questioned the types of risks the research park may face with attracting American businesses following recent changes in the U.S. and the threat of steep tariffs.
"We don't know what the future holds in terms of potential tariff impacts on the [Corporation of the County of Lambton Community Development Corporation] but in some initial discussions within the last week or so, we think there may be some opportunities that lie ahead for us if these tariffs do come in effect," said Albion. "But even if they don't, there may be potential opportunities for us, especially domestically. We know that Canada will need to become more independent in terms of our international relationships which would result in more investment and support of manufacturing and [research and development] within Canada. These are specific areas of strength, so this could lead us to attract additional companies to our research park."
Although the research park expects to break even in early 2026, it is seeking an additional $900,000 grant or loan from the county in 2025, to be disbursed in four payments.
The funding request will be considered during Lambton County budget deliberations on March 5.