Impact Assessment

ISSN: 0734-9165 (Print) (Online) Journal homepage: https://www.tandfonline.com/loi/tiap19

INGREDIENTS FOR SUCCESSFUL COMMUNITY

DEVELOPMENT - ATIKOKAN TOWNSHIP CASE
STUDY

Iris M. Kairow

To cite this article: Iris M. Kairow (1983) INGREDIENTS FOR SUCCESSFUL COMMUNITY
DEVELOPMENT - ATIKOKAN TOWNSHIP CASE STUDY, Impact Assessment, 2:3, 55-62, DOI:
10.1080/07349165.1983.9725981

To link to this article: https://doi.org/10.1080/07349165.1983.9725981

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 INGREDIENTS FOR SUCCESSFUL COMMUNITY DEVELOPMENT -
ATIKOKAN TOWNSHIP CASE STUDY

Iris M. Kairow*

INTRODUCTION

Atikokan, Ontario is a resiliant community which could provide an

example to others. While more diversified towns have a better chance at
attracting industry, maximizing economic benefits and minimizing social
costs, a village can be overrun by rural industrialization.
Atikokan (population 4,700) is a northern community located in a
sparsely populated area of Ontario, about 2 2 5 km west of Thunder Bay.
It has been a predominantly resource-based, single-industry town. In
this context, the township has been built on a history of considerable
migration and rapid growth conditions in the 1950s and 1960s, but became
a closely knit community because many families have remained there since
1940. It has thus gained experience in accomnodating the physical,
social and economic changes that accompany substantial migration and has
succeeded in developing a mature social structure and a good level of
services. The northern location and absence of a surrounding trade area
have reinforced Atikokan's sense of self-reliance, and local identity.
The township's population reached its peak in 1961 and has since
gradually decreased. The Atikokan population has been much more stable
than the surrounding Rainy River District over the years. Following two
mine closures, when 1,000 jobs were lost (about half of total
employment), only one third of the families directly affected left the
township.
Bowles (1981) distinguished a "vital" community as one having high
participation in collective events and with services provided by many
informal social networks. These qualities are not outstanding in
Atikokan. Bowles also refers to the capacity to conceptualize an event
as a collective impact, as well as a personal impact. This has been
exhibited by Atikokan's political efficacy, i.e., the ability to
mobilize resources, and take effective action.
Pross (1976) contrasted two Canadian towns and highlighted five
critical determinants to absorb new development: the nature of the
industry, government policies, demographic features, community
facilities, and the political and administrative capacity of the host
community. In this case study, all except the last of these would have
worked against Atikokan's success. This small, single-industry township
had poor transportation and neither attractive facilities n o r explicit
government policies to rely on. The spirit of the community has defied
the odds.

*Iris M. Kairow, Community Studies Planner and Member of Ontario Society

f o r Environmental Management, 28 Elsfield Road, Toronto, M8Y 3R4,
Canada.

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 PKOSS attributed political and administrative success to:

-community spirit
-an effective leadership
-sense of drive within the business community and
-an experienced and respected planner

Co-ordination can be added to this list along with other key

ingredients: lead time, proponent credibility, a framework for
agreement and the use of a single agency.
Local communities tend to be overwhelmed by the glamour of
development; but Atikokan has worked hard and never really relaxed in
its successes.

TEN INGREDIENTS FOR SUCCESSFUL COMMUNITY DEVELOPMENT

1. Sufficient Adjustment Time

In the early days of open pit excavation, the mining companies

and the miners felt that their iron ore resources were infinite.
Also, during the war, iron was essential, whether it was economic
OK not. Many residents have chosen to settle on a permanent basis,
which is rare for single-industry communities. In the early 1970s,
the future of the mines became questionable and in 1972, one firm
announced that it would close by 1975, although there remained a
great amount of ore which might have been mined by newer methods.
Perhaps this fact enabled the residents to maintain their sense of
"permanency." Futher delays gave the residents more preparation
time since it was 1980 before both mines were closed down.

2. A Spirit of Determination

Atikokan has not been a stereotypic boom-town; it is a

spirited community with activities, services and residents who are
reluctant to abandon their investment in the community and in their
property. This positive attitude has helped citizen involvement in
projects from their recreation centre, to an interest in their
industrial future.
Residents' attitudes play a large part in successful economic
development. In the PKOSS study contrasting economic development
impact on the two towns, one was able to adjust partially due to
its perception of itself as aggressive, and adaptable to change.
The other town looked to senior government to keep it alive.
Atikokan issued community profiles which began "Atikokan is a town
that wants to continue to exist . . . . ' I

3. Effective Local Leadership

The co-operative attitude and persistent dedication of

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 members has been a vital ingredient in the development of Atikokan.
Actions by township leaders have resulted in the location of
several industries, encouraged joint agreements and community
planning and brought about municipal facilties. The ability of
fewer than five local leaders to challenge both provincial and
federal government has directed attention to the problems facing
residents of the North. Commitment to a self-managed approach to
problem-solving has gained recognition of Atikokan as a model of
community development.

4. The Drive and Structure of the Business Community

The prospect of the mines' closure stimulated several local

interest groups. The key business group was a new one, the
Atikokan Industrial Development Committee (AID), formed to report
to the township council. AID was instrumental in the location of a
particle board plant in 1975, employing 130 people. It also
speeded the establishment of a new hospital and government
building. Other secondary industry was attracted to fill their new
industrial mall which already needs expansion. The AID Committee
conceived the idea of attracting an electric generating station to
Atikokan, and in 1973 the township approached Ontario Hydro. By
May 1975, Ontario Hydro recommended Atikokan as the new site for
its proposed electric generating station.

5. Planning Studies

Because there were great objections by Atikokan to the

rejection of a proposed road link, the province responded by
funding a study on economic prospects for Atikokan Township in
1973. There was some talk that Atikokan should be allowed to
wither away. But this was the heyday of regional development
theory in Ontario. In this brave mood, the government gave an
endorsement to the provincially-owned utility to go ahead with the
Atikokan generating site.
The Atikokan project represents a technical milestone for this
electric utility because of its location on a small lake and the
use of lignite fuel. More importantly, it was Ontario Hydro's
first venture directly involving the public during the site
selection process. The location was influenced by economic
development rationale. A social impact assessment by consultants
and an in-house environmental assessment were written.
An industrial development commissioner was hired (in 1978) for
a five-year term. His economic analysis and sound planning studies
have won the respect of government representatives. Some critical
research has been conducted at a nearby educational facility,
Quetico Centre, assisted by facilitators. The thrust for
diversification is toward improving the local tourism industry and
is exemplified by a recent conference.

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6. Continuity in Co-ordination

This is difficult to detail. Anyone familiar with the

development of a project can appreciate the need for continuity in
personnel. At present, in Atikokan, there have been personnel
changes on municipal council and a great deal of time is spent on
orientation to various issues. This brings some concern that prior
understandings may be lost.

7. Credibility

Enlightened project management has gained local credibility,

beginning with the co-operative attitude of the mining companies who
supported the mines being included within the municipal boundaries.
"Seed money" was always available for joint projects, but the mines
never promoted company-owned facilites. They felt a responsibility
to support the town, but not to run it.
How has a company which has a virtual monopoly on electricity
generation in the province avoided an image of running over this
small town? Before the generating station was approved by
government, consultants completed an objective social impact
assessment (on impacts to housing, sewage and roads). On the basis
of this report, a legal agreement was signed in 1978 which set
aside over one million dollars to pay for anticipated impacts. The
Community Impact Agreement provides for monitoring and negotiation
before funds are expended (Appendix A).
Since the Agreement was signed, a liaison between the township
and Hydro has developed above and beyond the monitoring
requirements. Hydro can help in the township's dealings with other
levels of government. The construction of the Hydro facility in
the township is also a symbol of a community with a viable economic
future. Although there is no cost advantage for business to be
close to the source of electricity, the township has used the
station as a symbol to attract other industries and keep skilled
and professional people in the community. Ontario Hydro is proud
that it is accepted positively by the comunity.

8. A Framework for Agreement

A legal Cornunity Impact Agreement sets out a management

process that the two parties agree will fairly protect their
interests. Ontario Hydro benefits by limiting its liabilities to
the municipality to the Agreement's terms and by obtaining a
guarantee from the municipality not to withhold licences and
permits. For these benefits, Ontario Hydro pays impact-related
costs to the municipality. The municipality benefits by having a
legally-based mechanism to assess impacts and to obtain fair
compensation for impacts caused by Ontario Hydro, and by gaining
money and expertise for community planning.

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 There is confidence in Hydro's Community Impact Monitoring
Program which is a systematic attempt to measure, analyze and
evaluate socio-economic impacts; to clarify the nature of community
changes; to define the responsibilities and to facilitate
mitigation measures. An adversarial attitude is seldom present.
There are terms within the impact agreement for hiring an
independent consultant and/or for arbitration. These two steps have
not been needed. If a rational case is made, compensation is
usually provided. Success of this program is dependent on working
creatively within the confines of the Agreement and in a spirit of
mutual trust.

9. Government Support

There was no shortage of governmental agencies that might have

assisted this declining town. There was a special provincial
Committee of Cabinet on the Economic Future of Mining Communities.
Also, there are federal and provincial Ministries of Housing, of
Community Services, of Intergovernmental Affairs and the federal
Department of Regional Economic Expansion (DREE) has as its main
purpose the promotion of industrial growth in areas of regional
disparity. Many overtures were made by this agency, all of which
resulted in little action. In short, there were many more agencies
than sources of funding (Michels 1980).
The idea of maintaining jobs motivated the governmental
support. The federal Department of Employment and the provincial
Ministry of Labour provided matching funds. The agreement responds
to local initiative, a key point discussed earlier.

10. Single Agency for Co-ordination

By the time of the mine closures and assistance programs for

Atikokan, the Ministry of Northern Affairs was formed with the
purpose of providing a "one-window'' approach to northern
communities and ensuring that the special interests of northern
towns were taken into account in the legislature.
At the local level, there was also one co-ordinating body, the
Joint Manpower Assessment and Planning Committee (JAMPAC) formed in
May 1978. Funding was obtained from the mining companies, local
sources and government agencies. This committee of local citizen
leaders (with government representatives as advisors) held 44
meetings over four years. The committee commissioned a community
profile and an inventory of investment opportunities, and promoted
an air shuttle service between Atikokan and a northern mine. The
committee had a large role in hiring a transition councillor and an
industrial development officer. It also brought in the regional
Community College to give training courses.
JAMPAC was useful for dealing with senior governments,
particularly where proposals did not fit the confines of certain

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 groups. In concluding their work, JAMPAC recommended that a
permanent committee be formed with a similar function and broader
membership.

POLITICAL EFFICACY

Less than a year after the Community Impact Agreement was

authorized, the need for electric power was re-evaluated. Ontario Hydro
announced an impending decision: to either cancel the project, or
extend the construction period. Two weeks later, an Atikokan delegation
presented a brief to the all-party Ontario Legislature's Select
Committee on Hydro affairs, outlining the importance to Atikokan and
Northwestern Ontario of continuing the station. Their argument was
based on the need for a reliable source of electricity, not on the
community development aspects or for the township's survival.
One month later, Hydro decided that construction would be delayed
rather than shelved. In 1982, the second half of the project was
cancelled. The scheduled date for commissioning is October 1984; but
the question of whether there is enough need to warrant operating the
station won't be decided until that year. Nonetheless, the Industrial
Development Commissioner has already prepared a multiplier analysis, to
show the effect from the decline of the construction workforce and the
difference between operating, and not operating the plant. The township
council held a meeting with Ontario Hydro to explain their case. Top
level personnel flew up to Atikokan in May 1983 to examine the
situation. This negotiating process provides for a satisfactory planning
arrangement.
Through this case study, ten ingredients have emerged as examples
of successful community development in this northern Township. Two
conclusions are particularly notable: Community Impact Agreements
provide for mutual satisfaction and the spirit of its residents have
shaped a resilient community despite uncertainty.

REFERENCES

Baril, R.G., (1982). Community Impact Management, Paper prepared for

the International Conference on Social Impact Assessment: The
State of the Art, October 24-27, Richmond, B.C.

Bowles, R.T., (1981). Social Impact Assessment in Small Communities,

Toronto: Butterworths.

Dunn, V. (1983). Township of Atikokan - Setting an Example in Community

Spirit, Financial Times, April, p. 15.

Kairow, I.M., (1978). Community Impact Identification: Socio-Economic

Effects of the Proposed Onakawana Development, Toronto.

Michels, R.E., (1980). The Atikokan Story, Quetico Centre.

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Pickett, E.E., (1977). An Impact Survey of Communities Adjacent to
Recent Ontario Hydro Developments. Department of Industrial
Engineering, University of Toronto, Toronto.

Pross, P.A. (1976). Planning and Development: The Case of Two Nova
Scotia Communities, Canadian Council on Urban and Regional
Research, January.

APPENDIX A: OBSERVATIONS ON THE EFFECTIVENESS OF

COMMUNITY IMPACT AGREEMENTS BY ONTARIO HYDRO
(BARIL, 1982)

Purpose

a) Agreements and monitoring appear to be better designed to deal with

hard impacts and less well-designed to deal with the soft. Both
components are built into the Agreements, but the ability of both
parties to understand and deal with soft impacts is very important.

b) Agreements and monitoring have replaced the confrontation mode with

the co-operative mode. Since both parties are working with the
same data base, there is a better chance of Agreement. Arbitration
has not been required to date in any of Hydro's three Community
Impact Agreements.

Boundaries

a) In order to reinforce the process, municipalities must be required

to respond to impact items within the context of the Agreement.
This should be the only vehicle for municipalities to obtain money
from Ontario Hydro.

b) Since it is difficult to forecast impacts when the Agreement is

written, it is important to build in flexibility. That has been
the intent of the Supplementary Agreements and it has proved
useful.

Data Collection

a) Rolling target monitoring benefits Ontario Hydro by providing both

the data base required t o respond to impact claims and the planning
process needed for the timely mitigation of impacts. It benefits
the municipality by providing it with a planning approach and
provides a basis for making impact claims.

b) Obtaining good data from local sources not attuned to record-

keeping has proved to be a problem. It is not easy to demonstrate

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 the benefit in collecting data, when that benefit may not be felt
for several years.

Objectivity

a) While the Agreements assign the responsibility for monitoring to a

municipality, municipalities are often uncomfortable with that role
and Ontario Hydro ends up by carrying a larger load of the
monitoring than might be advisable. A consultant brings
impartiality, but a loss in the close working relationship between
the municipality and Ontario Hydro.

b) The Agreements, from a general bookkeeping point-of-view, have been

an effective means for Ontario Hydro to internalize and control the
social costs of project construction and operation.

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