TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: May 25, 2026 Report No. SI-26-012
TO: Council
FROM: Terése Finegan, Manager of Economic Development
SUBJECT: Revising the Vancouver Island Inter-Community Business Licence Bylaw
RECOMMENDATION:
Recommendation
That Council:
1. Give three readings to Vancouver Island Inter-Community Business Licence Bylaw, 2026, No. 3089; and
2. Authorize the Mayor and Corporate Officer to execute the Vancouver Island Inter-Community Business Licence Agreement on behalf of the Township of Esquimalt upon adoption of Bylaw No. 3089.
Body
EXECUTIVE SUMMARY:
This report seeks Council approval to repeal and replace the existing Inter‑Community Business Licence (ICBL) Bylaw with an updated bylaw and to adopt a formal Vancouver Island ICBL Agreement to improve program clarity, strengthen enforcement, and support consistent administration across participating jurisdictions.
BACKGROUND:
Inter‑Community Business Licences (ICBLs) support a coordinated regional economy by allowing eligible businesses to operate across multiple participating jurisdictions through a single licence. The program reduces administrative burden and licensing costs for businesses that provide mobile or inter‑jurisdictional services, while maintaining local regulatory oversight through consistent bylaw requirements adopted by each participating jurisdiction.
The Vancouver Island ICBL program was launched in January 2020. As of July 2021, the program includes the following 14 participating jurisdictions:
City of Colwood
City of Duncan
City of Nanaimo
City of Parksville
City of Victoria
District of Sooke
District of Central Saanich
District of North Saanich
Municipality of North Cowichan
Town of Ladysmith
Town of Lake Cowichan
Town of Sidney
Town of View Royal
Township of Esquimalt
Under the ICBL framework, the fee ($170) and general licence terms are standardized, with each participating jurisdiction adopting a substantially similar bylaw to administer the program locally.
When the ICBL program was implemented, a formal inter‑community agreement among participating jurisdictions was not established.
Since implementation, participating jurisdictions have identified the need to review aspects of the ICBL framework to support more consistent administration and enforcement across jurisdictions.
ANALYSIS:
The Township of Esquimalt participates in the Vancouver Island Inter‑Community Business Licence (ICBL) program, which has generally functioned as intended. However, as the program has matured, participating jurisdictions have identified operational and enforcement challenges requiring attention. These challenges primarily stem from differences in local business licensing practices, particularly in jurisdictions that issue perpetual business licences. In some instances, businesses have been able to obtain an ICBL from jurisdictions other than where their premise is located, including situations where a local business licence has been suspended or revoked. This has complicated enforcement efforts, increased administrative and legal costs, and reduced the effectiveness of local regulatory oversight.
To address these issues, partner jurisdictions have collaboratively developed updates to the ICBL bylaw. The proposed changes maintain the existing framework while clarifying that businesses must obtain an ICBL from the jurisdiction in which their premise is located and limiting the issuance of ICBLs by jurisdictions with perpetual licences to resident businesses only. Additional excluded business types and enhanced enforcement provisions are also proposed to prevent jurisdiction‑hopping to avoid compliance requirements. In addition, a formal Vancouver Island ICBL Agreement has been developed to support consistent implementation of the program. The agreement would formalize partner participation, clarify roles and expectations for administration and enforcement, and establish communication protocols among jurisdictions.
Both the proposed bylaw and agreement include updated language to replace references to “municipality” or “community” with “jurisdiction,” and to enable the future inclusion of First Nation communities, subject to participant approval. Approval of the updated bylaw and agreement is required from all participating jurisdictions. Partner jurisdictions are bringing these recommendations forward to their respective Councils, with implementation to follow pending unanimous adoption.
OPTIONS:
1. That Council give first, second, and third readings to Inter-Community Business Licence Bylaw, 2026, No. 3089, and authorize the Mayor and the Corporate Officer to execute the Vancouver Island Inter-Community Business Licence Agreement upon adoption of Bylaw No. 3089.
2. That Council make additional amendments to the bylaw then give three readings Inter-Community Business Licence Bylaw, 2026, No. 3089 as amended and authorize the Mayor and the Corporate Officer to execute the Vancouver Island Inter-Community Business Licence Agreement.
3. That Council request additional information from staff.
4. That Council receive Staff Report SI-26-012 for information.
COUNCIL PRIORITY:
Good Governance and Organizational Excellence
FINANCIAL IMPACT:
No financial impact.
COMMUNICATIONS/ENGAGEMENT:
As the system to administer the ICBL is already in place there will be no impact to businesses with the adoption of the new ICBL bylaw. If adopted the Township website will be updated where appropriate
TIMELINES & NEXT STEPS:
If Council gives three readings to Bylaw No. 3089, the bylaw will come forward for adoption at the Council meeting scheduled to be held on June 22, 2026
REPORT REVIEWED BY:
1. Judy Kitts, Director of Strategic Initiatives
2. Ian Irvine, Director of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Deb Hopkins, Acting Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Inter-Community Business Licence Bylaw, 2018, No. 2934
2. Vancouver Island Inter-Community Business Licence Bylaw, 2026, No. 3089
3. Vancouver Island Inter Community Business Licence Agreement