Many municipalities, including Port Colborne, are exploring new ways to deliver services and manage community assets more effectively. One tool available under Ontario law is the Government Business Enterprise (GBE) – an arm’s-length organization that operates like a business while serving the public good. 

A GBE can give municipalities the flexibility to deliver specialized services, attract investment, and generate new revenue streams to support community priorities, all while maintaining public ownership and accountability. 

One of the key benefits of establishing a GBE is that it allows major infrastructure and development projects to move forward without directly impacting taxpayers. Establishing GBEs in Port Colborne would keep the costs off the municipal tax base and water/wastewater rates. 
 

Establishing GBEs in Port Colborne 

Council is currently considering the creation of two GBEs in Port Colborne. If approved, the GBEs would be responsible for constructing, maintaining and owning the water, wastewater and potentially other infrastructure serving the East Side Employment Lands district, which includes both current and future industrial developments including the Asahi Kasei Battery Separator Canada site. The GBEs will help ensure the infrastructure needed to support economic growth is managed effectively and sustainably. 

The proposed GBEs are:  

  • A district company that would construct, maintain and own the water, wastewater and related infrastructure within a new water and wastewater district. 

  • A holding company, which will be wholly owned by the City, and would own shares in the East-Side Employment Lands Water and Wastewater District as well asshares in any other GBEs the City establishes. 

These GBEs would allow the City to maintain public ownership and control, while creating a structure that can operate with more flexibly and efficiently. They are also intended to support long-term infrastructure investment, strengthen service delivery, and create opportunities for strategic partnerships. 

As part of their due diligence and before establishing the GBEs, City Council has directed staff to implement a public engagement process to gather input from the public and share more information about what these two GBEs would mean for residents.  

Community engagement will play a key role in shaping how these GBEs are established and governed. Residents and stakeholders will be invited to learn more and provide feedback throughout the process. 

Have Your Say 

Want to learn more or share your thoughts about the establishment of GBEs in Port Colborne? There are a few ways to participate. 

  • Open House: October27,2025 from 3 to 7 p.m. in Council Chambers at Port Colborne City Hall 

  • Paper Survey: Get a paper copy of the survey at City Hall, the Vale Health & Wellness Centre or the Port Colborne Public Library  

Survey closes November 12, 2025.   

Frequently Asked Questions 

 What is a GBE?
A GBE is a separate legal entity created and owned by a municipality. Its purpose is to deliver a specific service, program, or project. It operates like a business but serves the public interest. GBEs are designed to provide municipalities with more flexibility, efficiency, and opportunities to generate revenue, while ensuring continued public ownership and oversight. 
 Why would a municipality create a GBE? 
 Establishing a GBE allows the City to: 

  • Secure financing that exceeds traditional municipal borrowing limits 

  • Deliver specialized services or infrastructure more effectively 

  • Respond more quickly to opportunities in the market or community 

  • Access new funding and revenue sources 

  • Support strategic priorities such as economic development or infrastructure investment 

  • Maintain strong governance and public accountability 

  • Complete major infrastructure and development projects without directly impacting taxpayers 
 Why does Port Colborne need GBEs?  
GBEs can help the City of Port Colborne deliver critical infrastructure renewal and expansion projects in a financially sustainable way. Municipalities face increasing pressure to upgrade aging infrastructure and plan for future population growth, but these projects are expensive and often exceed traditional municipal funding tools.  

Additionally, borrowing capacity is limited, government grants are not guaranteed, and Council aims to minimize tax increases and spikes in water and wastewater rates for residents. GBEs can secure and arrange their own financing, separate from the City’s core finances, creating more flexibility to advance priority projects. This innovative model supports long-term infrastructure planning, aligns with municipal priorities, and helps ensure essential services keep pace with growth and community needs. 
 What kinds of services can a GBE provide? 

GBEs are commonly created to manage: 

  • Utilities (e.g., water, wastewater, energy) 

  • Economic development or land development initiatives 

  • Affordable housing projects 

  • Transit and transportation services 

 
 What services would GBEs in Port Colborne deliver?  

 The first GBE in Port Colborne would be responsible for constructing, maintaining and owning the water, wastewater and potentially other infrastructure serving the East Side Employment Lands district, which includes both current and future industrial developments. This will help ensure the infrastructure needed to support economic growth is managed effectively and sustainably.  

 

The second GBE would be established as a holding company and referred to as a HOLDCO.  The legal foundation and function of the HOLDCO under the Municipal Act is to simply hold shares in the subsidiary corporations that will sell goods and services. The City’s HOLDCO will have a majority ownership stake in the new water district GBE and will hold shares in this company.  

 

In addition to the water district GBE, the City is also exploring other opportunities where this model could be applied. These include creating new housing options to address the “missing middle,” developing sustainable energy solutions for municipal facilities to reduce consumption and achieve net-zero emissions, and maximizing the value of City-owned real estate through strategic partnerships. Together, these initiatives would support key community priorities while leveraging innovative tools to deliver critical services.The City’s ownership interest in each of the GBEs is through the HOLDCO, not directly with each GBE. 
 Why does the City need water and wastewater infrastructure servicing the East Side Employment Lands district, including the Asahi Kasei Battery Separator Canada site?  
The East Side Employment Lands, which includes the Asahi Kasei Battery Separator Canada site, are located approximately 5km outside of the City’s urban boundary. This means they are not currently serviced with municipal water or wastewater infrastructure. In order to bring the needed infrastructure to both the expanded industry land and to better serve planned housing growth and existing homes on the east side of the Welland Canal, the City will partner with the Niagara Region to build new water and wastewater infrastructure. Since this new infrastructure is quite expensive, and to help keep costs of these investments off the tax base and water rates, the Cityhas developed a funding strategy that uses two Government Business Enterprises.  
 How is a GBE governed? 
A GBE typically has: 

  • A Board of Directors appointed by City Council 

  • A Shareholder Declaration outlining how the municipality oversees the organization 

  • Clear performance and reporting requirements to ensure transparency 
    While the GBE operates independently day to day, the municipality remains the sole or majority shareholder. 
 Does the City lose control of the service when it’s managed by a GBE? 
No. Even though GBEs operate at arm’s length, the City: 

  • Sets strategic direction and performance expectations 

  • Appoints board members 

  • Receives regular reports and audited financial statements 

  • Retains ownership and final decision-making authority as the shareholder 
 How does the community benefit from a GBE? 

Residents benefit when services are delivered efficiently, sustainably, and with a long-term vision. GBEs can: 

  • Generate revenue to reinvest in local priorities 

  • Create jobs and attract new investment 

  • Support infrastructure improvements and economic growth 

  • Provide opportunities for strategic partnerships that benefit the community 
 How are transparency and accountability maintained? 
 GBEs must comply with: 

  • The Municipal Act, 2001 (Ontario) 

  • Municipal and provincial accountability requirements 

  • Shareholder direction and oversight from Council 

  • Annual reporting and financial disclosure standards 
    Board activities and financial information are typically reported through Council and made publicly available. 
 How are decisions about creating a GBE made? 

 Before establishing a GBE, the City must: 

  1. Develop a strong business case 

  2. Consult with the public and key stakeholders

  3. Obtain Council approval 

  4. Complete any required filings with the Province 

This ensures the GBE aligns with municipal priorities and community needs.
 Will creating a GBE increase taxes? 
No. In Port Colborne, the proposed GBEs are designed to operate on a business model, generating revenue or delivering services more cost-effectively. This can reduce financial pressure on the tax base or water rates. Any potential impacts are fully assessed through the business case and reviewed by Council before moving forward. 
Who will run the GBEs in Port Colborne?  
City Council will appoint an Executive Director for both GBEs, and that person will report to the respective Boards of Directors for each GBE. The Executive Director will be responsible for the management and day-to-day operations of the GBEs based on direction from the Board and as outlined in the strategic plan for the GBE. There will be a separate Board of Directors for each GBE and the Board will be responsible for governance and monitoring performance.
 Why does Port Colborne need two GBEs for the same project? 
 One GBE is required for the East Side Employment Lands servicing project within a new water district to support industrial growth and development. Another GBE, known as a holding company, is being established to hold the City’s shares and ownership interest in the water district GBE and other subsidiary GBEs that may exist in the future.
Once a GBE is formed, can it ever be undone?  
Yes, City Council could decide to eliminate the GBE structure, and this would require advice from the City Solicitor based on a specific legal process to ensure compliance with provincial laws and regulations.  
 Where else in Ontario have GBEs been used?
Across Ontario, several municipalities have successfully used Government Business Enterprises (GBEs) to deliver essential services and major infrastructure projects. For example, Toronto Hydro Corporation, London Hydro Inc., ENWIN Utilities Ltd. in Windsor, and Hydro Ottawa Holding Inc. all operate as GBEs, helping municipalities finance and manage utilities without relying on property taxes. Others, like CreateTO in Toronto and Oakville Enterprises Corporation, use the model for housing, land development, and infrastructure. This approach allows cities to keep costs separate from their core finances while maintaining public ownership and control.
 Will Asahi Kasei be involved in the running of the GBEs? 
No, Asahi Kasei will not be involved in the management and operation of the City’s GBEs. The water district GBE will own,maintain, and finance infrastructure assets that will provide water and wastewater services to Asahi Kasei and other future industrial users.All decisions will be made by the GBE’s Board of Directors, appointed by City Council. 
  
Why is now the right time to establish GBEs in Port Colborne?  
The East Side Employment Lands servicing project presents an opportunity for the City to be innovative and implement a new legal, governance, and financing structure to own infrastructure assets and deliver public service.