Steinbach City Council · Jan 2022 – Sept 2026 · Chamber forum topic: business growth

Business growth and investment: what has council done?

What has council done to help local businesses grow and attract new investment, what has it stopped doing, and how do other councils compare?

Quotes link to their moment in the official meeting videos; news and peer sources are linked. Last updated Oct 13, 2026.

Bottom line

Business is growing: $118M in building permits in 2025, including $42.4M commercial, industrial and institutional.
The binding limit is land and servicing. In February 2026 the mayor said the city had no industrial lots left, with 11–12 new lots coming on Acres Drive. Wastewater capacity runs out around 2032.
Council ended its economic development office. It had paid $65,000 a year for five years to Steinbach Economic Development, and stopped at the end of 2025 for lack of results. No city replacement has been set up.
A 0.5% business tax goes almost entirely to the Chamber of Commerce, about $225,000 in 2025, with no written list of deliverables. Councillors have questioned the arrangement, but businesses want to keep it.
Council protects the subsidized industrial park for industry and keeps retail out, while making downtown easier: mixed use as of right, one-third less parking, and a zoning by-law cut from 155 to 106 pages.
Peers do more on three fronts: buying land ahead of demand (Morden), multi-year economic development agreements with measurable goals (Portage), and published incentives (Winkler, Niverville). The research suggests land and servicing matter more than tax breaks.

Part 1 · The council record

The economic development office, 2021–2025

In 2021 the city agreed to match private investment of up to $65,000 a year for five years in an economic development office, first housed at the Chamber and later incorporated as Steinbach Economic Development (SED).

“Important to note that there's a steep increase to the Standby Chamber of Commerce, but that is with the new economic development officer position that we are joint funding with the private and public partnership.”

Councillor Damian Penner · Mar 15, 2022 · 0:13:51

“what are the markers of success that will indicate that this process has led to results? Like, what are you targeting in terms of whether it's number of businesses or number of jobs created?”

Michael Zwaagstra, Deputy Mayor (chairing) · Mar 5, 2024 · 0:37:54

“And a lot of it is on serviced land. It's not available land anymore. It's serviced.”

M.B., director of Steinbach Economic Development, on what investors look for · Mar 5, 2024 · 0:45:26

“SED drives workforce development with a direct economic impact exceeding $12 million annually, and this has been accomplished with the Rural Community Immigration Pilot Program.”

M.B., director of Steinbach Economic Development · Mar 18, 2025 · 0:59:11

“Is this a contributing factor in the reason that you're requesting in the upcoming year for the city to double the public contribution to SED?”

Councillor Michael Zwaagstra · Mar 18, 2025 · 1:11:56

“I find it very concerning that there's Veils of transparency that are being hidden with regards to that program.”

Councillor Damian Penner, on the immigration pilot · Mar 18, 2025 · 1:16:47

“the city has put in $65,000 a year for the last 5 years from 2021 to current … The, the reason I think we need to stop the funding is that we haven't seen the development that we would have liked to have seen”

Councillor Jac Siemens, moving to end the funding (R25-158) · Aug 5, 2025 · 0:24:52

“I do believe that economic development is a partnership. … And I think our— part of the nearsightedness was to expect that one office would do it. And really, it's a partnership, it's a team thing.”

Mayor Earl Funk · Aug 5, 2025 · 0:29:55

Context

Councillor Jake Hiebert said “The results aren't there for City Council now to pay $65,000 to continue this program,” and Councillor Bill Hiebert said “I don't see the value that I thought I would see” (SteinbachOnline). Both Penners were absent for the vote. The Chamber accepted that “expectations around business attraction and investment outcomes were not fully met.” SED says it will continue as a regional office using its reserves, and it still runs the federal immigration pilot, which has no federal administration funding. No measures of success were set when the pilot began in 2021, which is partly why council couldn't judge it in 2025.

Land, zoning and the industrial park

“I think this is, it's great for our city to be proactive to create spaces and create an environment where businesses want to be and grow and thrive and build.”

Mayor Earl Funk, approving 11 new industrial lots on August Cove · Jan 21, 2025 · 0:10:47

“There's a number of reasons why retail is not permitted automatically in industrial zoning, partly because our industrial parks are subsidized by the city because we're trying to attract more industry. So obviously we want to direct retail to commercial spaces which are not subsidized in the same way”

Councillor Michael Zwaagstra · Oct 4, 2022 · 0:17:51

“So they're investing in our commercial areas, spending a lot, and then, you know, there's this retail space in a subsidized area, and it really is— makes it not a level playing field. It's really unfair, actually, to the people who've set up retail space.”

Councillor Susan Penner · Oct 4, 2022 · 0:21:19

“If a retail sales use is approved for this site, it has the potential of essentially requiring the Steinbach taxpayer to subsidize commercial development and use, and through taxpayer funding, the city has effectively become a competitor.”

Troy Warkentin, City Manager · Feb 18, 2025 · 0:10:08

“This is not perfect, but there's no zoning category this fits under. And I do want to have a common sense approach here.”

Councillor Michael Zwaagstra, approving a narrowly limited book sale in the industrial park · Nov 15, 2022 · 0:33:48

“I struggle here simply because I would— I'd like to see business moving to Steinbach.”

Councillor Jac Siemens, as council denied a truck yard on Tower Ave · Jan 16, 2024 · 1:31:02

Context

Of 15 business-related conditional-use applications in 2022–2026, council approved 11, denied 3 and split 1. Of five requests for retail in the industrial park, three narrowly limited ones were approved and two broad ones denied. Business variances were almost always granted (12 of 14). Industrial lots sell fast: the mayor said the 7 Acres Drive lots “sold basically as soon as they came on the market”, and by February 2026 “we don't have any industrial lots left at the city” (SteinbachOnline). The city's land page lists no prices.

Business tax and the Chamber

Steinbach levies a 0.5% business tax and passes it to the Chamber of Commerce, less a 5% administration fee. It is renewed unanimously each year.

“So I feel this $225,000 is way out of line, and I think we need to review that. Again, that's not— it doesn't affect residential property taxes, but it does impact our businesses.”

Councillor Susan Penner · Mar 4, 2025 · 0:19:31

“in general, normally I wouldn't approve of a business tax, to be honest. I want to, you know, keep Steinbach as open for business as possible. … In fact, when we have wanted to cancel this tax in the past, businesses are the ones advocating that we keep it.”

Councillor Susan Penner · Apr 7, 2026 · 1:39:45

“Lower cost attracts business and residents. Lower cost creates a pro-growth environment, and Steinbach City Council has always been pro-growth and business-friendly.”

Mayor Earl Funk · Apr 21, 2026 · 0:04:50

“I think that going with the 5% increase appropriately balances the need to keep up with those additional costs without putting too much of a burden on people who are constructing new homes and businesses.”

Councillor Michael Zwaagstra, on development fees, which include non-residential fees · Oct 17, 2023 · 0:08:47

Downtown

“how do we get more businesses downtown? And the answer is usually we need more population and we need more density.”

Councillor Damian Penner, approving a 6-storey mixed-use building on Main St · Jun 18, 2024 · 0:35:28

“It's developer-driven. We had to wait until a developer wanted to do it.”

Mayor Earl Funk · Jun 18, 2024 · 0:38:18

“And parking lots don't bring people downtown. Businesses do.”

Councillor Damian Penner, on the new zoning by-law · Dec 3, 2024 · 0:19:50

Context

The new zoning by-law (2026) allows mixed-use buildings downtown as of right, cuts required downtown parking by one-third, and allows offices, restaurants and clinics in existing buildings in the area around downtown. Council has also waived main-floor commercial requirements twice. Steinbach has no downtown plan, business improvement zone or storefront grant program.

Their reasons for not doing more

1Spending must show results

“We have many of our EDOs are unofficial. They're the landowners, they're the business owners, they're the ones who attract various places and people to our community.”

Councillor Jac Siemens · Aug 5, 2025 · 0:28:58

Context

Council's demand for evidence is reasonable, but the 2021 pilot was never given targets to measure against. Portage la Prairie and its RM fund a regional economic development agency on a four-year agreement: $261,710 a year from the city and $112,162 from the RM, through 2027 (PortageOnline).

2Federal programs shouldn't become city costs

“was there any of that type of consultation prior to you making the decision to go ahead and apply? Because obviously this application has an impact on the city as a whole, especially because you're asking for tax dollars to pay for this.”

Councillor Michael Zwaagstra, on the immigration pilot · Mar 18, 2025 · 1:19:39

3Taxpayer-subsidized land is for industry, not retail

“So the city builds these industrial parks, we're using tax dollars and granting, and we sell the lots at cost or just above cost.”

Councillor Jac Siemens · Feb 18, 2025 · 0:33:15

“When I see instead that people are leaving commercial areas for the cheaper warehouse district, retail is retail, light industrial is light industrial.”

Councillor Jake Hiebert · Nov 15, 2022 · 0:30:55

Part 2 · How Steinbach compares

Scorecard

How Steinbach's council compares with other Manitoba and Prairie councils on business growth.

Strong ahead of or matching good practice On par typical practice Partial started, with gaps Gap common elsewhere, not done here

Measure	Steinbach	What others do	Rating
Serviced industrial land	No city industrial lots left by early 2026; 11–12 coming on Acres Drive; no prices published.	Morden's development corporation bought 142.5 acres for $2.9M (2022) ahead of demand; Niverville sold 80–90 business-park lots over a decade.	Partial
Economic development delivery	Five-year pilot ended Dec 2025 with no targets set; no city replacement.	Portage funds a regional agency on a 4-year deal ($374k a year combined); Winkler and the RM of Stanley share a development corporation; Selkirk and Morden have staff.	Gap
Business incentives	None published.	Winkler credits new municipal tax from expansions 100/80/60/40/20% over five years; Niverville rebates tax on new construction; Selkirk offers downtown façade grants up to $5,000.	Gap
Protecting the industrial park	Consistent case-by-case policy keeping retail in commercial zones.	Typical practice.	On par
Business tax and the Chamber	0.5% tax passed to the Chamber (~$225,000) with no written deliverables.	Brandon and Morden levy no separate business tax.	Partial
Downtown	Mixed use as of right, one-third less parking, waivers granted; no downtown plan or storefront grant.	Brandon has a downtown tax-increment program; Selkirk has a façade grant.	On par
Red tape and permit speed	Zoning by-law cut from 155 to 106 pages; no published permit timelines.	Winnipeg publishes permit processing times weekly.	Partial
Workforce and immigration	Immigration pilot run by SED without city or federal administration funding.	Morden runs a city-linked immigration initiative (about 50 families a year).	Partial

Key findings

1Land and servicing are the real limits

Business demand is strong: record permits, lots that sell as soon as they're listed, and the SED director's own point that investors want serviced land. The city ran out of industrial lots in 2026, and its wastewater system reaches capacity around 2032. Morden ran out too, then bought 142.5 acres through its development corporation (PembinaValleyOnline). Steinbach has its own development corporation that could do the same.

2The office failed partly because success was never defined

Council ended SED funding because it couldn't see results, but no targets were set in 2021 for jobs, investments, land sales or business visits. Whatever replaces it should start with written measures and an annual report.

3Tax breaks matter less than land and speed

Research on local business incentives finds they change only a small share of location decisions: a median of about 13% across 34 estimates, and less in the most careful studies (Upjohn Institute). Steinbach's commercial and residential mill rates are the same, and its property taxes are low by Manitoba standards. Serviced land, predictable zoning and quick permits likely matter more than new incentives.

Peer councils on business growth

Municipality	Economic development model	Incentives	Notes
Winkler, MB	Winkler Stanley Economic Development Corp. with the RM of Stanley; business contact at City Hall	5-year step-down credit on new municipal tax from building or expansion	City of Winkler
Morden, MB	In-house; development corporation holds land	Shovel-ready land; no municipal business tax	Bought 142.5 acres for $2.9M (2022)
Portage la Prairie, MB	Regional agency, 4-year deal with the RM	Industrial land sales	City $261,710 + RM $112,162 a year
Niverville, MB	Town plus development corporation; business park with a private partner	Business incentive grant on new construction	80–90 lots sold in about a decade (SteinbachOnline)
Selkirk, MB	In-house economic development director and officer	Downtown façade and site grant up to $5,000	City of Selkirk
Steinbach, MB	Pilot office ended 2025; none now	None published	No industrial lots left early 2026

What “doing all it can” would add

Keep a rolling supply of serviced industrial land, for example always two to three years ahead, using the city's development corporation to buy land before it's needed, and publish lot prices online.
Choose an economic development model with written targets: an in-house officer, a regional agency with neighbouring RMs, or formal delivery through the Chamber. Report each year on inquiries, land sales, jobs and business visits.
Put the business-tax grant under a service agreement with the Chamber, setting out deliverables and an annual report, and consider capping its growth.
Decide who funds the immigration pilot's administration now that the city grant has ended.
Publish permit processing targets and results.
Consider small, rule-based incentives only once land is available, such as a time-limited credit on new municipal tax like Winkler's, and a low-cost downtown storefront grant like Selkirk's.
Keep wastewater expansion on schedule, since business growth stops when servicing does.

About this page

Transcripts. Meeting quotes come from automatic transcripts of the official videos. The transcription often misspells the city's name; quotes show it correctly as Steinbach. Other words are left as transcribed. Each quote links to its moment in the video.
Speakers. Council quotes are from speakers identified with high confidence. Where a transcript speaker was uncertain, the councillor's words are taken from news coverage instead. Council members and city staff are named; residents and representatives of organizations are identified by initials.
Unrecorded meetings. Budget study sessions aren't recorded, so the outcome of SED's request to double its funding and any review of the Chamber's business-tax share are not on the record.
Claims. SED's figures (a $12M annual impact) are its own and were not verified.
Coverage. All 103 regular council meetings from January 2022 to September 15, 2026 were searched.

Sources

Council meetings (official YouTube recordings): Mar 15, 2022 · Oct 4, 2022 · Nov 15, 2022 · Oct 17, 2023 · Jan 16, 2024 · Mar 5, 2024 · Jun 18, 2024 · Dec 3, 2024 · Jan 21, 2025 · Feb 18, 2025 · Mar 4, 2025 · Mar 18, 2025 · Aug 5, 2025 · Apr 7, 2026 · Apr 21, 2026