Steady progress is being made at the Yarmouth Yards industrial park with activity continuing at a hectic pace.
Now, we’ve chosen our words carefully when referring to the 1,500-acre industrial park in general.
That’s because there has not been a lot of chatter of late related to the PowerCo EV gigafactory which will be the primary tenant on the site.
In fact, in Monday’s (Dec. 2) city council agenda package, there is an Industrial Development Update that indicates the majority of work at Yarmouth Yards is progressing on schedule.

However, four projects are marked in yellow, indicating areas of concern.
Three of those projects are directly connected to the gigafactory.
These include a parking/staging area, the actual construction of the PowerCo factory which was to have begun in the third quarter of this year and the Volkswagen Training Centre Building which was also to have construction begin in the third quarter.
In a feature aired this week on CTV in London, questions were raised about the impact of President-elect Donald Trump’s threat to slap a 25 per cent tariff on Canadian goods entering the U.S.
One of the individuals quoted is Andreas Schotter with the Ivey Business School at Western University.
He is a Professor of International Business and a Wall Street Journal Distinguished Professor of the Year.
The fact no concrete has yet been poured at the site of the gigafactory, combined with the possible tariff impacts and the volatile labour situation at Volkswagen’s home bases in Germany, has Schotter pondering the construction schedule moving forward and whether a re-think might be in the wind.
We caught up with Prof. Schotter on Friday morning – ironically in Germany – about what might be at stake for the economy of the region should the 2027 plant opening be pushed back.
By way of background, he noted he worked for Volkswagen for a year in 1996 before he obtained his PhD and became a professor.
To complicate matters, strikes are possible beginning next week at Volkswagen operations in Germany and the company will have to direct its focus on that labour turmoil, prompted by the threat to shutter as many as three factories.
He stresses Volkswagen needs “To refocus on its core competencies: building reliable, high-quality cars, affordable cars, that’s what they need to do.”
Schotter pointed out Volkswagen has never done “really great in North America and they need North America right now.”
While he has concerns about the St. Thomas EV battery operation, Schotter does note, “This battery plant is different from the Northvolt one because this one is tied to a car brand. Right?
“It’s like the Tesla factories. I mean I would be much more concerned if it would be just a standalone battery manufacturer.”
Northvolt, a Swedish EV battery manufacturer had planned to open a factory in Quebec but has now filed for bankruptcy protection.

“I don’t know what is in the contract between the government and Volkswagen if they would get penalized if they don’t build the factory, I have no idea, nobody is privy to this.”

Schotter points to Volkswagen’s dependency on China as opposed to Toyota “which is less dependent on China and less dependent on their home market.”
He raises the question of the huge subsidies afforded Volkswagen by both the federal and provincial governments here in Canada and the possibility of penalties tied to construction delays.
“I don’t know what is in the contract between the government and Volkswagen if they would get penalized if they don’t build the factory, I have no idea, nobody is privy to this.”
He doesn’t believe the Trump tariffs will become a reality.
“I think he is using this as a bargaining chip for some of his political agendas and, you know, including this immigration issue and the drug issue, which is actually not an issue, right?
“I would argue that more drugs are coming from the U.S. into Canada than vice versa . . . not true, it’s typical Trump.”
Back to the battery plant, Schotter notes, “I agree, this is way too quiet around the battery plant.
“Well, they need it for the U.S., in a way, but I also think the market for EVs is not really skyrocketing right now.”

Schotter reiterates there is much pressure on Volkswagen “to make it happen in North America. But for them, North America is mainly the U.S.”
But first things first.
“I think they’re trying to fix what’s going on in Germany.”
Schotter presented a compelling analogy to perhaps clarify the immediate future at the Yarmouth Yards industrial park.
He stressed Volkswagen is “The anchor investment, right? It’s like when you build a shopping mall and your anchor is, I don’t know what it is, Target, Loblaws, Walmart, Macy’s, Hudson’s Bay and, all of a sudden, Hudson’s Bay is not moving (in), you have a problem in your mall, right?
“It’s really a difficult situation. I’m just saying at the moment, I think Volkswagen has so much to deal with in Germany. This (the St. Thomas EV gigafactory) may not be top priority yet. I don’t know.”
Schotter hinted where a clearer indicator of Volkswagen’s future in North America may reside.
Earlier this month, Kjell Gruner was appointed head of Volkswagen in North America, serving as the CEO of Volkswagen Brand North America and President and CEO of Volkswagen Group of America, starting December 12.
Schotter concluded, “That might be, you know, a better indicator of what’s going on there. But I would be concerned as well, right?”

FAIRVIEW AVENUE PROJECT: BALANCING MOBILITY WITH SAFETY

At Monday’s council meeting, members will be asked to approve a staff recommendation to begin work on Phase 1 of the Fairview Avenue corridor update.
This section stretches south from Talbot Street to Warehouse Street and would include the removal of the Fairview Avenue bridge over the former CASO right-of-way, south of Talbot Street.

The project would reduce the roadway from four lanes to two with a two-way centre turn lane, intersection improvements, upgrades to the watermain, storm drainage and sanitary sewers and enhancements to the active transportation network.
This would entail a cycle lane on both sides of Fairview Avenue.
A public information centre was held in October with the concerns raised identified in the report to council.

“Garbage collection, transit buses, snow removal, street sweeping, and delivery stops may periodically interrupt the flow of traffic.”

Staff advise, “The proposed three-lane design balances mobility and safety without significantly compromising the overall corridor vehicular capacity in the ultimate 20-year planning horizon.”
As to a fire or police emergency, “A three-lane configuration provides a clear, predictable, and practical path of travel for emergency vehicles in the center turn lane. Research provided by the Federal Highway Administration (FHWA) has shown that four-lane to three-lane conversions have no measurable impact on emergency response times.
“Garbage collection, transit buses, snow removal, street sweeping, and delivery stops may periodically interrupt the flow of traffic.
“As with other three-lane roadways within the City of St. Thomas, vehicles may use the center turn lane to overtake slowing or stopped vehicles, only when it is safe to do so and when the center turn lane is clear of oncoming or left turning traffic.”
As to the cycling lanes on either side of the roadway, “The Fairview Avenue Rehabilitation project fills a connectivity gap between the bike lanes south of Elm Street and the paved shoulders on Burwell Road north of Talbot Street, completing an important link in a planned network that provides connectivity between residential neighbourhoods, institutional and recreational facilities, industry, and commercial shopping centres,” according to the staff report.

With the provincial government taking a dim view of removing an active lane of traffic to provide bike lanes, the staff report touches upon possible implications for the Fairview Avenue project, with the photo above illustrating such a lane in Nanaimo, B.C.
“The province has recently passed new legislation through Bill 212 Reducing Gridlock, Saving You Time Act, 2024 that requires those municipalities who are prescribed by subsequent regulation to submit information to the Ministry of Transportation for approval prior to implementing a bicycle lane that would reduce the number of travel lanes available to motor vehicles.
“While details of the submission requirements have not been released, the legislation indicates the Ministry may consider whether the addition of a bicycle lane would unduly diminish the orderly movement of motor vehicle traffic.
“The Fairview Avenue Corridor Study demonstrates that there is not an excessive or undue impact on the flow of traffic along Fairview Avenue and positions the city well should it be prescribed by subsequent regulation to require Ministry approval.
“In the meantime, staff will monitor communications from the Province to determine if subsequent regulation would apply to the City of St. Thomas or the Fairview Avenue Rehabilitation project.”
The bill for the undertaking would be in the range of $12 million, with $7 million earmarked for Phase 1.
That amount is to be included in the draft 2025 capital budget submission to council.

Related post:

For the third time in as many years, St. Thomas is on the hunt for a city manager

MORE QUALITY, AFFORDABLE HOUSING ON THE WAY

After the ground-breaking ceremony in September, work is well underway on Eastwood Housing Corporation’s latest project, Highview Hideaway, undertaken in partnership with Doug Tarry Homes.
The 82 units at 220 Highview Drive will consist of one- and two-bedroom rental apartments, all at 79 per cent or lower of CMHC market rates.
The city is contributing $3 million toward the overall cost of $28 million with the understanding that 48 of the units will be affordable housing.
That agreement is to be formally approved at Monday’s council meeting.
Highview Hideaway will include an on-site community room, storage lockers, laundry facilities and pickleball courts.
Full occupancy is projected for mid-2026.

Eastwood Housing Corp. will own and operate the property and provide all tenant and maintenance services.
Eastwood is a Christian, non-profit, charitable organization that also works with the YWCA in providing three townhouse units for families and a pair of townhouses for youth experiencing homelessness.
We spoke at length with Jon McCurry, Eastwood’s Director of Operations, about the ambitious undertaking in partnership with Doug Tarry Homes and you can read that post here.

THE ECHO CHAMBER

Responding to our item last week on the Conservative Party of Canada nomination meeting earlier this month to select a candidate to represent Elgin-Middlesex-London (to become Elgin-St. Thomas-London South) in the next federal vote, Regis Trudel forwarded the following observation.

“I was involved in a number of nominations back in the 70s and 80s in the GTA, and fortunately never experienced what appears to have happened here.
“I just hope it does not impact the turnout at the next election, since we have to get a conservative majority to fix our broken economy, etc.
“As for the local office, I’m sure they were all good people helping Karen, but I would recommend that it would help to have more experienced staff who do more than just respond to concerns by providing the federal department’s explanation.”

I would argue that any constituent who contacted Vecchio’s office for assistance was not negatively impacted by any lack of experience as suggested above.

Questions and comments may be emailed to City Scope

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And a reminder, I can be heard weekday afternoons as news anchor and reporter on 94.1 myFM in St. Thomas. As always, your comments and input are appreciated.