One of the most expensive assumptions I see business owners make is this:
“It’s my industrial property, my industrial business should be allowed there and I can do whatever I want on my land.”
That sounds reasonable.
Unfortunately, it’s not always true.
I’ve had conversations with business owners who signed a lease, moved equipment onto a site, hired staff, and then discovered that the City had questions about their operation when they applied for a business licence.
At that point, solving the problem becomes much more expensive.
Why Does This Happen?
Most people don’t spend their evenings reading the Calgary Land Use Bylaw. I certainly wouldn’t expect them to.
What catches people off guard is that industrial zoning isn’t one thing.
The City has different industrial districts, different development approvals, and different rules that apply to different types of businesses.
Two properties can look almost identical and have completely different approval histories.
That’s why a use that works perfectly on one site may require additional approvals on another.
The Issues I See Most Often
Misalignment with intended operations and allowed Uses on a site. Land in an industrial area can have several different Industrial zonings in the area, some of which do not allow all industrial uses. Often, in new industrial areas the land is zoned as Special Purpose – Future Urban Development (S-FUD) District with only allows limited Uses on the site.
In these cases, a redesignation followed by a development permit are required to use the land you have purchased.
Other issues arise when land owners develop their industrial land without permitting as operational creep or expansion of services occur and operation takes precedent over land bylaw compliance. A new purchaser assumes the Use or operations are allowed but they have never been permitted properly. Then the onus to ‘fix’ the issues and gain compliance lands on the new purchaser or user!
In many cases, the first sign of a problem is a request from the City during a business licence review.
The Question Every Business Owner Should Ask
Before signing a lease, buying a property, or investing money into a site, ask:
“Can I legally operate my business here?”
It sounds simple, but it’s one of the most important questions you can ask.
The answer isn’t always obvious from the zoning designation or the real estate listing.
A quick review up front can save months of frustration later.
Final Thoughts
Most land use compliance issues are easier to solve before a business commits to a property.
If you’re looking at an industrial site and you’re not sure whether your operation is permitted, it’s worth asking the question before the City asks it for you.