The Sovereign Defence Industrial Space Activation Program is an incentive offered through the Employment Development Community Improvement Plan (CIP).
The Sovereign Defence Industrial Space Activation Program will support the establishment of sovereign defence end users within eligible industrial buildings. The program supports the activation, expansion, and retrofit of vacant or underutilized industrial space for sovereign defence end users and related industrial activity. Funding is provided through a competitive application process and is awarded as a forgivable loan to help offset eligible project development and redevelopment costs.
The intent of the forgivable loan is to simplify the incentive process by providing one single application in place of tying incentives to specific fees and charges. The City recognizes that each project will have different investment requirements, based on numerous factors such as size, scale, location and project details. For this reason, rather than setting a fixed forgivable loan amount, applicants are responsible for determining a reasonable amount that will be required for their project, taking into consideration various factors.
Applicants must provide documentation to justify the incentive amount requested, and City staff will use that to determine if it is reasonably tied to the expected investment and jobs that will be created.
If awarded a forgivable loan, an agreement between the City and the owner (registered or assessed owners of lands/buildings) and/or end user, will be required, which will set out the terms, duration and default provisions of the grant provided; this may be registered on title of the subject lands. The City may discontinue or rescind any financial incentive, plus interest, where there is not compliance with an executed agreement, including reporting requirements to ensure the end use is maintained per the agreement.
The forgivable loan can be used towards any eligible project development costs, but cannot exceed total costs of development or redevelopment, or be used towards operational costs.
The forgivable loan shall be delivered through a formal agreement between the City and the applicant, setting out the eligibility requirements, disbursement schedule, performance conditions, monitoring requirements, and repayment provisions.
Eligibility
To be eligible for the Sovereign Defence Industrial Space Activation Program, applicants must meet all eligibility requirements in Sections 3.3.1 and 3.3.8 of the Employment Development CIP. Please read and review the Employment Development CIP before completing an application. Key criteria:
- Projects must be located within the City of Barrie municipal boundary as it existed on the date of passing By-Law Number 2026-018 to be eligible for financial incentives.
- Project sites shall not be located on lands subject to flooding hazards, erosion hazards, including wetlands.
- Projects must involve an existing industrial building containing vacant or underutilized industrial space within designated employment lands. This includes any expansions of an existing industrial building.
- The proposed end user must be confirmed by proof of future tenancy, or other legal documentation to the satisfaction of the City solicitor or designate and business activities must meet the definition of sovereign defence, as defined in the Zoning By-law.
- This could include the requirement to demonstrate operations within the industrial defence sector.
- Industrial tenants are required to have a minimum lease term of 5 years.
- Priority will be given to projects anticipating significant investment values or significant employment impact.
- Any projects under this incentive are not eligible for any other CIP programs with the exception of the Tax Increment Equivalent Grant (TIEG).
Priority will be given to projects receiving funding through Invest Ontario, or other provincial or federal funding agencies.
Eligible project costs shall be consistent with overall project development or redevelopment costs and subject to verification by the City.
Funding
Applicants are responsible for identifying the amount of funding being requested and providing supporting documentation demonstrating why the requested amount is necessary to advance the project.
Funding requests will be evaluated based on:
- Eligible project costs
- Private capital investment
- Job creation and retention
- Activation of vacant or underutilized industrial space
- Strategic value to Barrie's sovereign defence ecosystem
- Broader municipal and regional economic benefits
The program scorecard informs funding decisions; however, funding awards are not determined by score alone, and may be adjusted based on available funding, project readiness, risk and agreement conditions.
Funding will be released on a milestone basis following execution of a funding agreement. Payment milestones and associated conditions will be established in the agreement and tailored to the specific project.
The program offers a competitive forgivable loan rather than a fixed incentive amount. Applicants must justify the amount requested and demonstrate that it is proportionate to anticipated investment and employment outcomes.
The maximum forgivable loan available under the program is $5 million per project, subject to available program funding and Council-approved budgets.
Application Details
Applications are accepted on a first-come, first-served basis. Applicants must:
- Complete the online application form
- Complete the owner’s authorization form (if applicable)
- Submit all required supporting documentation; please review the application package requirements for details
- Agree to enter into a legal agreement with the City of Barrie (if you are approved for the CIP program)
Applications will undergo eligibility screening, detailed evaluation and scoring before funding recommendations are considered.
Funding Agreement
Funding approvals are subject to execution of a funding agreement with the City. The agreement will establish:
- Approved funding amount
- Eligible project costs
- Payment milestones
- Performance requirements
- Monitoring and reporting obligations
- Repayment or default provisions
- Any applicable security requirements
The City may require the agreement to be registered on title to the subject property where appropriate.
CIP Program Guidelines
Please see the guidelines for full information. For questions about the program, contact Invest Barrie at invest@barrie.ca.