Town of Kensington is banking on success for its new industrial park

A new industrial park in Kensington, P.E.I., is taking shape fast, and the town is banking that its investment the largest in the town's history will pay off.

"We believe if we get some industrial park lots going, get some more businesses into the area, we'll generate more jobs, generate more demand for single-family housing," said Kensington Mayor Rowan Caseley.

Total cost of the project now stands at about $6 million. That's about $900,000 more than when the project was first announced in August of last year. Installation of curbs, underground storm sewers and a holding pond, rather than open ditches as originally planned, accounts for the extra costs, according to Caseley.

Construction crews are installing water and sewer services, with road paving to begin this fall, in the 38-lot industrial park, located off Route 2 on the west side of Kensington.

The next big challenge will be marketing the town's new real estate. Caseley estimates the lots will sell for $70,000 to $130,000, depending on size and location. Town staff will handle sales and marketing. About 20 potentialbuyers have expressed interest, according to the mayor.

Kensington's other industrial park, on the other side of town, has been full for years.

"We have continually had calls from people looking for industrial lots in town and we have we've had none," said Caseley.

The Town of Kensington annexed land last year for the new industrial park. One other business nearby is now requesting annexation of its land as well. The mayor said the business,a local dairy bar,may want to tap into water and sewer services that are now available on the western perimeter of town, as a result of the creation of the industrial park.

Long-term plans includemore residential housing

In the long term, the town has plans for a 90-home residential subdivision in the west end of Kensington. The mayor saidthe industrial park could add momentum to that plan.

"One thing leads to another," said Caseley.

It's going to take time, according to the mayor. The town's cash flow and sales projections allow 10 to 15 years to sell all the lots.

The construction contractor told CBC News that the pandemic has made some materials and machinery parts hard to find and slow to arrive. The project remains on schedule, according to the mayor.

The town's contribution to the project now stands at about $3.3 million, according to the mayor. The province has contributed $500,000 and the federal government has made $2.5 million in contributions.