09.26.26
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‘The St. Thomas gigafactory remains a cornerstone of our North American strategy’ – Joel Karlsberg, PowerCo Canada

Production at the massive PowerCo EV battery gigafactory in St. Thomas has been pushed back to sometime in 2029, although the move is not being categorized as a step back.
The original plan called for a 2027 opening, which was amended to the second quarter of 2028.
The information was included in a media release issued this week announcing that EllisDon Corporation will be the general contractor for the $7 billion megaproject in Yarmouth Yards industrial park.
Construction includes the production-building shell, mechanical, electrical and plumbing installations, energy and utility systems, and supporting site services. Approximately 60 EllisDon workers are on site. That number is expected to ramp up to roughly 1,300 workers at peak, alongside additional personnel supporting parallel project activities.

Joel Karlsberg, Chief Procurement Officer, PowerCo Canada, noted in the release that the announcement “Is an important step forward for St. Thomas. Partnering with EllisDon allows us to keep construction moving while ensuring we retain the flexibility to scale the facility in line with market demand and long-term industry evolution.”
Max Mantha, President, Construction, EllisDon added, “This project will create opportunities for skilled tradespeople, local businesses, and communities across southwestern Ontario, and we look forward to working with PowerCo and our partners on this landmark development.”
St. Thomas Mayor Joe Preston said the choice of EllisDon is “a great thing.”
He added, “This really sets the next step in motion, having a general contractor of that size doing the work and predicting how many construction workers it will take to be on site. I’m quite excited by this.
“We know they can build big projects. Some of the other projects they have been able to bring in with some great contracting expertise and they are bringing that to the table in St. Thomas. That’s a great thing.”
The initial phase of construction will focus on the first cell production building incorporated in the massive facility and will require over 32,500 cubic metres of concrete and 500,000 square feet of formwork.
When construction began a year ago, Meredith Gibbons, Chief Procurement Officer for PowerCo Canada advised, “There are six different blocks to the factory. This one is specifically in the first block that we’re building up right now.
“Our goal is to copy and paste as much as possible in order to maintain efficiencies, but obviously, you learn as you go.”
In a cautionary note, the latest release advised, “PowerCo is aligning the project’s timeline and product strategy with evolving market demand, technological advancements, and the Volkswagen Group’s long-term strategy.

“This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market.”

“St. Thomas is now expected to begin operations in 2029 to accommodate next-generation battery technology, while retaining the flexibility to scale over time as market conditions evolve.”
PowerCo has two other EV battery plants in Spain and Germany, with the St. Thomas facility being the largest when fully completed.
Preston remained upbeat, despite the adjustment to the project timeline.
“I guess their new general contractor is suggesting that it may take a step or two more than they thought to build a plant of this size. We’re OK with that to get it done right and to watch market conditions in both the automotive and the EV market while we’re in the building process.
“I think this is a pretty good piece of news. PowerCo is still employing hundreds of people in St. Thomas, and now that one of the world’s largest and best general contractors is taking over the project is a pretty positive sign.
“Do we all wish this could happen tomorrow? We sure do. But let’s get it done and let’s get it done right.”
Preston was asked if he felt the delay would negatively impact homebuilders as they plan residential developments to house the thousands of new workers projected to move into the area.
“I hope it does not, because we are still in a housing crisis and we really need to continue work on. We talked about the Elgin Centre project (see the item below) and a couple of others that are in the planning stage or moving into the build stage. This will help a lot.
“Using EllisDon as a general contractor, with them being based close to us, we may not be having to house as much of the construction workforce as we originally thought.
“But all in all, we still need a tremendous amount of housing to match what we will need for the workers who will work at PowerCo.”
Karlsberg assured that this is not a step back. “The St. Thomas gigafactory remains a cornerstone of our North American strategy. We are continuing to build now while determining how and when the facility scales over time. This is about getting the pacing right—not stepping back—to protect our long-term investment, support regional jobs, and position Canada, Ontario, and St. Thomas to benefit in a dynamic and evolving market.”
POLICE BUDGET IS ‘RESPONSIBLE AND FORWARD LOOKING’
Earlier this month, the St. Thomas Police Services Board approved the police service’s 2027 operating budget, which builds on investments made this year, “while targeting additional capacity in areas of identified operational need,” according to board chair Dan Reith (pictured below).
The proposed operating budget is almost $24.3 million, after applying $150,000 from police service reserve funds. That’s an increase of $2.6 million, or 11.98 per cent over this year’s budget.
We wrote at length about the 2026 operating budget and the 22.37 percent year-to-year increase. You can read about this year’s police operating budget here.
For many years, the St. Thomas Police Service operated in a lean fashion when compared to similar-sized police departments, particularly when you look at the cost per capita of delivering services.
In recent years, budget increases were below two per cent, and in the last three years, the service has been undertaking what is equivalent to deferred maintenance on a vehicle.
Board chair Reith advised that the 2027 budget submission “Reflects the board’s responsibility to balance public safety requirements with careful stewardship of public funds.”
Reith went on to stress, “Our role is to ensure the St. Thomas Police Service has the resources necessary to provide adequate and effective policing, while carefully considering the impact of those decisions on our community and taxpayers.
“St. Thomas continues to grow, and the demands placed on our police service are becoming increasingly complex. The board has reviewed, adjusted and approved the proposed 2027 budget through that lens.”
According to Chief Marc Roskamp, service call demands “remain a central concern.”
As of August of this year, the police service has recorded 1,200 more occurrences compared with the same period last year.
Roskamp stressed that “This is not a temporary workload issue: it increases front-line deployment pressure, investigative follow-up, disclosure obligations, supervisory oversight, records processing, victim support requirements and the organizational cost of maintaining safe, timely and effective responses.
“The proposed budget is intended to ensure that the STPS can prioritize responses with the right people and best available resources, while preserving proactive policing and organizational resilience.”
Roskamp confirmed the 2027 operational budget includes two constable positions and one financial coordinator.
The latter will “Strengthen financial oversight, budgeting, forecasting, purchasing controls, grant administration, audit readiness and asset planning,” according to Reith.
It is worth noting that the three new positions will impact next year’s budget by about 1.4 per cent.
Also of note, close to 97 per cent of the proposed 2027 operating budget is eaten up by salaries and benefits, leaving the board with 3 per cent in discretionary funds.
The service’s collective agreements provide for a four per cent wage increase next year, together with associated increases in benefits, OMERS, specialty pay and shift premiums.
Community consultation conducted this year identified drug activity, crime prevention, police visibility and community safety, emergency response and violent crime as the five highest priorities in the near future.
Ninety-three per cent of survey respondents supported continued investment in proactive crime prevention, public education and community outreach.
A decline in Crime Severity Index values over the past three years would support the observation that recent financial investments and operational adjustments have had a positive impact.

“This budget is about maintaining a police service that is accountable, properly resourced, and prepared for the community we are becoming.”

Overall crime severity is down 10 per cent, violent crime severity by six per cent  and non-violent crime severity by 12 per cent.
An example noted by Roskamp was the 17.4 per cent reduction in violent crime severity in 2025 when significant resources were strategically deployed following a 22 per cent increase in 2024.
Likewise, with additional resources now employed in the downtown core, calls for service have declined by 18 per cent since 2020, complaints involving unwanted persons are down 75 per cent, and complaints related to drug use and associated activity have fallen by 84 per cent.
Reith concluded, “The chief has implemented strategies that increase collaboration with the city and our health, housing, education and social service partners, and this will remain important as we work collectively to keep St. Thomas safe.

“The 2027 operational budget is a responsible and forward-looking financial plan. It builds upon the significant investments provided by city council and strategically directed by the Police Services Board in fulfilling its legislative responsibility to ensure adequate and effective policing.”

“This budget is about maintaining a police service that is accountable, properly resourced, and prepared for the community we are becoming. The board believes the 2027 operating budget submission strikes an appropriate balance between responsible financial governance and our obligation to ensure the people of St. Thomas are safe and feel safe.”
Reith stressed that responsible and sustained investments in public safety “Produce meaningful results when resources are deployed strategically and supported by strong community partnerships, and a Right Care – Right Person approach.”
Roskamp added, “The 2027 operational budget is a responsible and forward-looking financial plan. It builds upon the significant investments provided by city council and strategically directed by the Police Services Board in fulfilling its legislative responsibility to ensure adequate and effective policing.”
The proposed budget will be incorporated into the city’s budget deliberation process, which will begin before the end of the year.
THINGS ARE LOOKING UP AT THE ELGIN CENTRE
For years it has been a convenient shopping destination, but the site of the Elgin Centre may soon be home to hundreds of apartment dwellers.
Two 10-storey mixed-use buildings are proposed for the southwest corner of the shopping centre, with a total of 232 residential units.
The original proposal envisioned five-storey buildings, and a public meeting was held Sept. 14 to address the zoning bylaw amendment needed for the height revision.
Also included in the proposal are two one-storey commercial buildings. The existing Denny’s Restaurant would be demolished.
The St. Thomas Municipal Airport bylaw restricts building height in that area to 37.16 metres or approximately 10 stories.
The development would be undertaken in two phases, with each phase containing 116 residential units, 1,930 square metres of commercial space, 165 parking spaces (100 underground) and 54 bike parking spaces. A courtyard is included in each phase.
That would leave 937 spaces for Elgin Centre customers and Holiday Inn users.
St. Thomas Mayor Joe Preston called the mixed-use proposal “good business sense.
“Taking the empty space of a mall, which is a huge parking lot that sits empty every night and almost all day every day, and saying, what can we do different here?
“Put a little bit of underground parking in and put buildings on the spots where nobody’s parking and use all of the space. It’s good business sense. It needs to be talked out clearly with the neighbors and with the municipalities.”

“We have had a shift over the last several years where there is more of a need for housing. We also have a commercial market study from 2025 that talks about introducing more housing and mixed-use development on this site.”

The story dates back to September, 2019 when city council unanimously approved recommendations from the planning department concerning amendments to the city’s official plan to support hotel and apartment use at Elgin Centre.
“They came to us about building the hotel and building two apartment buildings on site. We said, what a great idea. Because as we move forward with the growth of things like Powerco and Vianode, we’ll need more housing. And market rent apartments seem to be the most desirable at the moment.”
What was then Elgin Mall was purchased by a small, family-owned real estate investment company that acquired the 263,000-square-foot property in October, 2016.
At the time the mall was operating at a roughly 50 per cent vacancy rate.
Jay Burstein, spokesperson for the new owners stated, “Our goal is to try and lease the vacant space as quickly as possible and try to make this mall the vibrant place it once was.”
At the 2019 council meeting, the city’s manager of planning services Jim McCoomb noted in a report, “In my opinion, the proposed amendment is consistent with the applicable policies of the plan.”
McCoomb continued, “in my opinion, the proposed apartment use is consistent with the criteria of the plan for mixed-use development in the major commercial designation.”
At the public meeting earlier this month, Coun. Gary Clarke asked for the rationale on the height revision.
Michelle Knieriem, the city’s Manager of Planning Services, stressed the need for high-density housing.
“We have had a shift over the last several years where there is more of a need for housing. We also have a commercial market study from 2025 that talks about introducing more housing and mixed-use development on this site.
“I think in this particular case, we are still reviewing the application, but it is one of those instances where you have a mall that’s established, but offers a lot of amenities for individuals.
“Allowing for more high-density housing in proximity to it is something many municipalites have undertaken. We’re seeing it work rather successfully across the province in many locales.
“It’s something that we’re seeing frequently and there seems to be some demand for it.”
Coun. Steve Wookey expressed concerns about the 10-storey apartment building at the far west end of the property towering over the Eastwood Housing Corporation houses on the west side of Highview Avenue.
“We want transitions that step up and that seems to be a quite a step between the town homes and 10 stories. So I just will express that as a general planning concern, something that in my 12 years here we try not to do that.”

“I think at this point, our goal is 10 stories.”

When the meeting was opened up to the public for questions and comments, a Rickwood Place resident noted that opening up development to include 10-storey buildings “was really aggressive for this area.”
He continued, “And I’m just curious as to what studies have been conducted regarding the existing infrastructure, roads, garbage pickup, crime, tunnel winds. I mean, you’re you’re looking at putting over 200 units into this area. You spoke of incentives to developers, but my question is, what are the incentives to the local residents?”
Knieriem responded, “There have been various studies submitted in support of this application, including a servicing study which indicated that there was sufficient servicing available. There also was a traffic study that indicated that the development could be appropriate. There was a parking study done. There was a shadow study done as part of the proposal submitted along with the application. So there were numerous supporting studies done that have provided support for the application as provided by the proponent and those studies are being reviewed by city staff with expertise in the field as part of the application.”
Coun. Jim Herbert questioned whether the developer was flexible on the height of the two buildings.
Katelyn Crowley, with Zelinka Priamo, land use planners with offices in London and Toronto, speaking on behalf of the applicant advised, “I think at this point, our goal is 10 stories.”
A draft zoning bylaw amendment will come before council for approval at a future date.
CANDIDATE PROFILE: GEOFF MOUNTENAY, CITY OF ST. THOMAS
The Customer Service Specialist at St. Thomas Rent-All jokes that his five children are at the age “where they don’t necessarily want me at the house anymore.”
And Mountenay has logged experience in the council chamber at city hall. While he was in high school in 2005 through 2007, he was videotaping the proceedings for Rogers.
“So it is good timing that the kids are finally at that age that I can start doing some other things.”
He is well known in the community through his involvement with the Optimist Softball League, soccer, and the Elgin Theatre Guild.
So a return to the council chamber in an official capacity is an appealing prospect for Mountenay.
“My goal when getting on council is to be the one that people in the community, when I’m out doing all the things with the kids or just out in the community, can come and ask questions. Growing up, there was those couple of councillors that you were able to go and ask. They seemed to be everywhere. And whether or not they got the right information or whether or not you liked their answer, you knew that you could go to them. They were accessible.”
His dad ran for Central Elgin council, but lost by a slim margin to Sally Martyn.
As for campaign issues, we began with housing.
“We need affordable housing, but what is technically affordable for St. Thomas? I think Dr. Google said that the average family is making $47,000. So if you punch that into realtor.com, it only gives you a maximum mortgage of $300,000. Whereas the average home in St. Thomas is $530,000. So that’s not affordable housing as far as what the market says.
“Even the discounted housing that St. Thomas does have, it’s usually 80 per cent of the market rate.
“We need to, as a city, start to realize that that level, 80 per cent of the market value, isn’t necessarily an attainable amount. We need to be realistic on what people can actually afford in St. Thomas. I think all those partners in the community are doing a great job. We just need to keep on that and make sure that we’re focused on that.”

“I’m involved in the community, heavily involved, and just hoping that people will get out and vote. And I hope the vote goes for me, but if not, get out and vote and be a part of the solution. We can’t grow St. Thomas to where we want it to be if only 30 per cent vote.”

“That’s part of the looking ahead to what is going to happen with families, what people are actually bringing into St. Thomas. The battery plant, once it gets up and running, see what that looks like, in what capacity, what other industries come in here, and what other jobs come with it.
“And then, again, what are we bringing into St. Thomas other than just the jobs? Because in 2001, we had the Canada Summer Games. I don’t think we’ve had anything really that big since 2001.
“And industrial growth is now starting to strain our infrastructure. And that’s going to be a big factor down the road when you look at the new roads that are going to have to go in, road widenings that are going to have to go in.
“You wonder at the cost of the growth, are the ratepayers going to be able to handle it? Because we had a six per cent property tax increase this year. And a lot of people are used to three per cent or less. Is it going to be able to be three per cent down the road?
“The answer to that is going to be no, because we have to do the new sewers, new sewer trunks, new lines. And it’s not so much that this council is just spending more money. It’s that for how long have we had councils push back projects.
“So unfortunately there are going to be more costs up front. I think that’s just a realization of whoever gets on council.”
As he campaigns, Mountenay feels name and face recognition will be a factor.
“A lot of people know if they don’t know me, they know my mom (Deb). Or if they don’t know my mom, they know my dad (Joe). Yeah. And like I said, being related to Tara (former city councillor Tara McCaulley), those are good resources out there for word of mouth.
“I’m involved in the community, heavily involved, and just hoping that people will get out and vote. And I hope the vote goes for me, but if not, get out and vote and be a part of the solution. We can’t grow St. Thomas to where we want it to be if only 30 per cent vote.”
FOR THE CALENDAR
This Wednesday (Sept. 30)  Orange Shirt Day/National Day for Truth and Reconciliation. A community  gathering will begin at noon with a flag raising and opening remarks in front of city hall, followed by activities at St. Thomas Public Library and Westlake-Evans Park.

The afternoon will include opportunities for attendees to learn, listen, and connect through:

  • Indigenous cultural performances 

  • Guest speakers and knowledge sharing 

  • Educational displays

  • Indigenous artisans and vendors

  • An indoor film screening

  • Free lunch (while supplies last) 

  • Additional activities and programming

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.

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