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HomeMy WebLinkAboutCAO-13-017 - Waterloo Regional Economic Development Study REPORT TO: Finance & Corporate ServicesCommittee DATE OF MEETING: May 27, 2013 SUBMITTED BY: Jeff Willmer, CAO, 519-741-2200 x7350 PREPARED BY: Jeff Willmer, CAO, 519-741-2200 x7350 WARD(S) INVOLVED: All DATE OF REPORT: May 17, 2013 REPORT NO.: CAO-13-017 SUBJECT: Waterloo Region Economic Development Study RECOMMENDATION: 1. That the Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands, prepared by Malone Given Parsons Ltd. and dated April 2013, be received; and, 2. That the creation of an Office of Economic Development at the Region of Waterloo, pursuant to the parameters outlined in the memo from the CAOs dated April 25, 2013, and attached to Report CAO-13-017, be supported; and, 3. That the creation of a Waterloo Region Economic Development Corporation (WREDC) be approved in principle, subject to the development and approval, by each municipal Council, of a detailed implementation plan; and, 4. That the pursuit of changes to the Municipal Act which would allow the Region to participate in strategic employment land development be approved in principle subject to the development and appropriate consideration of a more detailed report to each municipal Council about how this could be accomplished; and, 5. That the creation of a Special Purpose Corporation to develop strategic employment lands in Waterloo Region be further investigated; and further, 6. That the Region be encouraged to work together with the City of Cambridge and East Side property owners to develop of a plan to expedite the development of the East Side Lands. 4 - 1 BACKGROUND & REPORT: As attached in the memo dated April 25, 2013 to all regional and area municipal councillors from all regional and area municipal CAOs. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Efficient and Effective Government is one of the strategic plan foundations. The recommendations relating to comprehensive policy and strategy for regional economic development are intended to improve accountability, governance and service delivery regionally. The recommendations on the provision of employment lands related to a number of community priorities, but primarily Quality of Life, and Development. The process of developing the report and recommendations address the community priority of Leadership and Community Engagement. FINANCIAL IMPLICATIONS: None at this time. COMMUNITY ENGAGEMENT: Economic Development stakeholders in the regional community were consulted as part of the preparation of the MGP report. The MGP report and the memo from all area/region CAOs were provided to councillors April 26, 2013. Economic Development staff were briefed that same date. The were presented to the CTT Board on May 2 and to Region of Waterloo council and all local councils at the All Councils meeting also held May 2. The MGP report was released to stakeholders shortly afterward. This staff report is made public when the standing committee agenda is posted on the internet. ACKNOWLEDGED BY: Jeff Willmer, CAO Attachments Memo dated April 25, 2013 to all regional and area municipal councillors from all regional and area municipal CAOs. Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands, Malone Given Parsons Ltd., April 2013. 4 - 2 Memo To: All Regional and Area Municipal Councillors From: Mike Murray, Chief Administrative Officer, Region of Waterloo Jim King, Chief Administrative Officer, City of Cambridge Jeff Willmer, Chief Administrative Officer, City of Kitchener Tim Anderson, Chief Administrative Officer, City of Waterloo Rodger Mordue, CAO/Clerk, Township of North Dumfries Willis McLaughlin, Executive Director Corporate/Operations (Int Grant Whittington, Chief Administrative Officer, Township of Wi David Brenneman, Chief Administrative Officer, Township of Wool Date: April 25, 2013 Re: Economic Development in Waterloo Region 1. BACKGROUND The Region and the seven Area Municipalities jointly commissione economic development issues in Waterloo Region. In particular, (MGP) to address two key issues: Is the current approach to delivering economic development servi working as well as possible? Are there any significant gaps, ov improvement? What should the Region and Area Municipalities be doing to ensur employment lands is available to support economic development? municipalities in Waterloo Region be involved in buying, develop lands and, if so, what is the best approach for doing that? The study was guided by a Project Team consisting of staff from and CTT, with overall direction provided by a Steering Committee Municipal Chief Administrative Officers. The findings and recom Development Framework and (2) Land Development Options are summa recommendations from the consulting team are included in Appendi The results of the study, including recommendations and proposed - This memo provides a summary of the Page 1 of 13 April 25, 2013 4 - 3 Economic Development in Waterloo Region developed by the Chief Administrative Officers. Following the A recommendations will be presented separately to each Council for 2. ECONOMIC DEVELOPMENT FRAMEWORK Based on a review of economic indicators, a review of economic d jurisdictions and interviews with over 30 individuals involved i Typically associated with high tech companies, Waterloo Region h clusters that have demonstrated exceptional success including: -secondary institutions: the University of Waterloo, Wilfrid Laurier Univer collectively are recognized internationally for their research, weaknesses in the current economic development framework. The c development framework does not fully meet the needs of the regio economic development stakeholders, and the public at large. Exa underachievement include: gaps in, and absence of, useful region often confusing marketing and promotion initiatives; lack of res economic development service across Waterloo Region; poor stakeh their contribution to economic development; lack of trust vertic region; and the absence of a coherent multi- consensus among stakeholders on the need for a regional approach t on their willingness to participate in regional economic develop The consultants identified five options for delivering economic 1. Status Quo 2. Greater Alignment and CoOrdination - The Region of Waterloo establish an Office of Economic Policy : coordinating the development of a Regional Economic Development Strategy; maintaining an inventory of available employment lands; and enhanced regional data collec distribution. - CTT would continue to focus on Foreign Direct Investment (FDI) Page 2 of 13 April 25, 2013 4 - 4 Economic Development in Waterloo Region - Area Municipalities would continue to focus on local economic retention and expansion, etc.). 3. Regional Economic Development Corporation - New Waterloo Region Economic Development Corporation (WREDC) f control of the Region and area municipalities responsible for: Economic Development Strategy; strategic branding and marketing Foreign direct investment; business and talent attraction and de collection, analysis and distribution. - There are several options to ensure a smooth transition betwee broader mandate of the new WREDC. The structure and governance organization would need to change from the current CTT structure - Area Municipalities would continue to focus on local economic - The Region would establish an Office of Economic Development P coordinating the development of a Regional Economic Development 4. Regional Economic Development Corporation (full responsibility) - Similar to Option 3, but in addition, all economic development out by the area municipalities would be carried out by WREDC. 5. Consolidate Economic Development Functions and Services at the - The Region of Waterloo would assume responsibility for all eco including those currently being provided by CTT and the area mun These options were evaluated on a range of criteria including: Ease of implementation; Ability to produce an effective regional strategy; Ability to efficiently deliver core economic development service Capability to ensure employment land goals are achieved; Ability to secure sustainable funding; and, Institutional risk. Based on this evaluation, and a review of successful economic de jurisdictions, the consultants identified Option 3 as the prefer recommendations are presented in Appendix A. Some of the key re An Office of Economic Policy should be established at the Region to coordinate the creation of an appropriate Regional Economic D Strategy would be created in conjunction with the 7 Area Municip development stakeholders. As part of this process a Regional Em be defined that meets the needs of the Regional Economic Develop Page 3 of 13 April 25, 2013 4 - 5 Economic Development in Waterloo Region A Waterloo Region Economic Development Corporation (WREDC) shoul mandate to deliver a full spectrum of economic development servi Its purpose would be to implement economic strategy, but not to employment land development. The WREDC should be under the formal control of the Region and t with a professional Board of Directors including substantial rep sector. CTT could be incorporated into the new WREDC or the CTT mandate CTT transitions to become the new WREDC. The structure and governance of the new organization would need to change from the current CTT structure reflect the new responsibilities and accountability of the new o The Area Municipalities would retain responsibility for specifi issues within the coordinating umbrella of the Waterloo Region E Corporation, as defined in the strategy and service agreements. Continue to be actively engaged in local business retention, wit o for organizations of strategic regional importance. Continue to provide local marketing outreach, but with coordinat o consistent factual material provided by the WREDC. It is essential that the Waterloo Region Economic Development Co partnership among local and regional government, the private sec The CAOs are in agreement with and supportive of these recommend described later in this document. 3. EMPLOYMENT LAND DEVELOPMENT Some of t development of Waterloo Region. This is well understood by all uncertainty about how much land is required, where it should be what locational attributes should developed land exhibit, and th ctor involvement in the development of industrial and business park land. There is a well- rather than be pressured to subdivide and sell to generate cash in Woolwich and Cambridge has Page 4 of 13 April 25, 2013 4 - 6 Economic Development in Waterloo Region and can provide a wider range of tenure options than would ordin values and the prospect that these could rise as the most attrac absorbed by the market. The consultants identified a range of possible approaches to ens employment lands remain continuously available, namely: 1)Reliance on the private sector; 2)A mix of municipal land development and private sector (maintain 3)Direct involvement by the Region of Waterloo in strategic land d 4)A special purpose public land development corporation; 5)A public monopoly that is jointly owned by all municipal jurisdi disposition of employment land; and, 6)A public monopoly that is controlled by the Regional Municipalit The recommendations regarding land development are presented in recommendations include the following: The Region and Area Municipalities should pursue appropriate cha that the Region of Waterloo can participate in strategic land de The existing local municipal role in land development should rem In the longer term, the major role of developing and selling emp to the private sector. A special purpose corporation owned by the Region and Area Munic established to develop strategic employment lands on the east si the airport, and other strategic lands as determined. ations, but believe the creation of a special purpose land development corporation needs further evaluation. In the short term, and pending the possible establishment of a m corporation, the Region, the City of Cambridge and Infrastructur Page 5 of 13 April 25, 2013 4 - 7 Economic Development in Waterloo Region 4. CAO RECOMMENDATIONS AND PROPOSED NEXT STEPS . Regarding (creation of a new Waterloo Region Economic Development Corporat an Office of Economic Development at the Region) as an interim s following: 4.1 Approve the creation of an Office of Economic Development at th The Office of Economic Development would undertake a few key tas Coordinate the preparation of a Regional Economic Development St o partnership with the Area Municipalities, CTT and other local ec stakeholders Update the employment lands inventory o Coordinate/compile research and analysis to support Regional and l o development activities As part of developing the Regional Economic Development Strategy o development of an implementation plan for the Waterloo Region Ec Development Corporation (governance structure, legal entity, res etc.). It is anticipated that initially the Office would consist of two proceed with this quickly, the Region would likely (in the short re-purpose two existing vacant positions. It will be important th who have appropriate economic development background, and famili development issues in Waterloo Region. 4.2 Approve, in principle, the creation of a Waterloo Region Economi (WREDC), subject to the development and approval of a detailed i WREDC would be under the control of the Region and Area Municipa would include: implementing a Regional Economic Development Str marketing of Waterloo Region; foreign direct investment; busines development; regional economic data collection, analysis and dis The implementation plan will need to consider a number of issues responsibilities of WREDC, governance structure, legal entity, r implementation plan will need to consider how best to build on t create a smooth transition to the new organization. Page 6 of 13 April 25, 2013 4 - 8 Economic Development in Waterloo Region entum. Options for transitioning from fulfill the broader mandate of the new WREDC. It is proposed th implementation plan be developed by a working group of CAOs and Pending the development and approval of this implementation plan would continue to fulfill their current economic development rol its important work on foreign direct investment, and the Area Mu essential efforts in local economic development. Regarding Employment Land Development, the CAOs recommendations include the following: 4.3 Approve in principle pursuing changes to the Municipal Act which participate in strategic land development, subject to a more det Council about how this could be accomplished. CurrentlySpheres of Jurisdiction participate in the development of employment lands. Changes to this would permit the Region to partner with one or more of the Area Municipalities on the devel lands in Waterloo Region. The necessary changes could either be number of other upper-tier municipalities (including Durham and currently have the ability to participate in land development ac This change would not alter the current Area Municipal role in developing employment lands, but option for employment land development in Waterloo Region. 4.4 Investigate further the creation of a Special Purpose Corporatio employment lands in Waterloo Region. The consultants recommend the creation of a Special Purpose Corp employment lands in Waterloo Region. There are few examples of Because of the many questions regarding how such a SPC would be believe that this issue needs to be further investigated before SPC. Some of the questions to be explored include: how the SPC it would be financed; how it would decide on property acquisitio 4.5 Develop a plan to expedite the development of the East Side Land rand River have been identified as the primary source of new greenfield employment la the City of Cambridge are just completing a Master Environmental Page 7 of 13 April 25, 2013 4 - 9 Economic Development in Waterloo Region infrastructure necessary to develop approximately 300 net hectar employment land in Cambridge as Phase 1. The Provincial governm Ontario) is a significant landowner in this area. As these phas CAOs recommend that the Region, the City of Cambridge and Infras expedite the development of the phase 1 East Side lands. Following the All-Council meeting on May 2, 2013, the CAOs inten Councils seeking the necessary Council approvals to proceed as q recommendations. Page 8 of 13 April 25, 2013 4 - 10 APPENDIX A 7.0 CONCLUSIONS, RECOMMENDATIONS & IMPLEMENTATION 7.1Conclusions The report provides: an analysis of the current economic develop structures; a review of the issues around the current economic d Region; and an analysis of identified comparator communities and the current economic and governance structures in Waterloo Regio and analysis of viable options for implementing a new Waterloo R Strategy, and the identification and analysis of options to ensu land is available to new and expanding employers. The Existing Economic Development Framework and Network The existing economic framework has successfully served the Wate However, a number of strategic weaknesses in the current framewo a system that will not meet the needs of the regional economy go weaknesses include: Absence of a coordinated regional approach; Gaps in data collection, analysis and info sharing; Dated/fragmented branding and marketing; Resource disparity between urban and rural; Trust issues; and, Poor alignment of stakeholder understanding of economic development. Comparative Analysis A number of comparator communities were evaluated to identify cu regional and local economic development. Four key trends that define the nature of economic development organizational arrangements include: MALONE GIVEN PARSONS LTD. 4 - 11 Business success is more commonly associated with a regional cluster approach; Regional business clusters require engagement at a wider regional level; Single-tier municipalities favour external economic development organizations; and Two-tier regional/local municipalities favour a combination of internal and external economic development organizations. An effective economic development process for Waterloo Region mu outcomes: A coherent economic development strategy; A strong brand and marketing program for the region that resonates and differentiates; Successful attraction of new companies across all key target clusters; Facilitation of the growth and retention of existing companies; Expansion of the tax base; Achievement of the broad community vision; More high paying jobs; and, A sustainable and growing regional economy. 7.2Recommendations Economic Development Service Delivery and Employment Land Strate A three way distinction is made between the governance and organ strategy, to implement an economic development strategy, and the amounts of shovel ready land. The first focuses on strategic pla business community relations, advocacy, analysis, and ensuring c means. The third focuses on direct capital investment, entering financing agreements, acquisition and disposition of real proper Recommendation: An Office of Economic Policy should be established at the Regi mandate to coordinate the creation of an appropriate Regional Ec would be created in conjunction with the 7 local Municipalities. Employment Land Strategy would be defined that meets the needs o Development Strategy. Framework Recommendations : Recommendation: Waterloo Region should have the objective of consolidating mo development functions under a single organizational umbrella. Th transparent focus, accountability, and more efficient deployment MALONE GIVEN PARSONS LTD. 4 - 12 Recommendation: That a Waterloo Region Economic Development Corporation (WREDC with a mandate to deliver a full spectrum of economic developmen purpose would be to implement economic strategy, but not to be i development. Recommendation: That the WREDC be under the formal control of the Region and t Municipalities. Recommendation: That CTT be incorporated into the WREDC or that the CTT mandate expanded so that CTT transitions to become the new WREDC. The structure and governance of the new organization would need to transition from the current CTT struc, in order to reflect the new responsibilities and accountability of the new organizat Recommendation: That a professional board of directors be established with substantia from the private sector. Recommendation: The WREDC should be a non-profit agency that is separate from, controlled by, the 8 Municipal partners within the region. Recommendation: That the WREDC enter into service agreements with the local Mu defines the specific economic development roles and responsibili Recommendation: The mandate of the WREDC should be: To implement the Waterloo Region Economic Development Strategy; To be responsible for all regional marketing; foreign, national and local; To facilitate and manage relationships with existing strategic businesses within the region, and to coordinate business relationship management with the local Municipalities; To coordinate the collection, analysis, and publication of regional data and information that is relevant to the planning, marketing and monitoring of economic development; and, To manage and be responsible for advocacy with other levels of government on economic development matters. Recommendation :The organization should be funded by the Region of Waterloo, the local Municipalities and the private sector. Recommendation: Local Municipalities would retain responsibility for specific local economic development issues within the coordinating umbrella of the Wate Corporation, as defined in the strategy and service agreements. Continue to be actively engaged in local business retention, with the WREDC responsible for organizations of strategic regional importance. Continue to provide local marketing outreach, but with coordinated market themes and consistent factual material provided by the WREDC. MALONE GIVEN PARSONS LTD. 4 - 13 Recommendation: It is essential that the Waterloo Region Economic Development multi-party partnership among local and regional government, the priva Employment Land Recommendations : The perspective of economic development policy is more short and term perspective of the Official Plan. It is here, at the short of a mismatch between supply and demand are potentially high. Th because the inventory of vacant land that is designated, service with an appropriate spectrum of location, size, and price is an development. The ability of Waterloo Region to market the region successful and growing companies within the region depend on the continually available. Recommendation: Where a Municipality owns employment land, its existing munici employment land development can remain. Recommendation: That a Special Purpose Corporation (SPC) be established to de employment lands on the east side, including those adjacent to t determined. Recommendation: The Special Purpose Corporation is governed by a professional responsible to the municipal shareholders, which would include t Recommendation: Take steps to change the Municipal Act to enable the Regional Recommendation: That a mandate be formalized, and business plan created and a deve prepared for the East Side and Airport. Recommendation: To enter into joint venture development agreements with privat required. Recommendation: To be initially capitalized by the Region of Waterloo and the s. Recommendation: Existing public land in the East Side of Cambridge and Woolwich the Special Purpose Development Corporation. This could also inc consideration, from the Ontario Infrastructure and Lands Corpora Recommendation: A detailed plan and development program is put in place. Recommendation: Phased investment in servicing is committed by the shareholders. Recommendation: Land is marketed directly to industries and to private develop MALONE GIVEN PARSONS LTD. 4 - 14 Recommendation: The Corporation should be structured so that it can be sold whol private / institutional investors in the future if desired. Recommendation: In the longer term, the major role of developing and selling emp transition to the private sector. 7.3Implementation The following time line chart summarizes the main action tasks t years to implement the recommendations. The description of tasks indication only. It is expected that the Regional Economic Devel detailed implementation framework. The phases are described brie MALONE GIVEN PARSONS LTD. 4 - 15 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY: ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES AND THE PROVISION OF EMPLOYMENT LANDS Prepared by: Prepared For: April 2013 Region of Waterloo 4 - 16 Waterloo Region Economic Development Study: Assessment of Economic Development Services and the Provision of Employment Lands Prepared By: Prepared For: Malone Given Parsons Ltd. The Region of Waterloo 150 Frederick St. 140 Renfrew Drive Kitchener, Ontario Suite 201 P.O. Box 9051, Station C Markham, Ontario N2G 4J3 L3R 6B3 www.mgp.ca lparsons@mgp.ca In Association With: Perimeter Public Affairs 54 Bathgate Drive Toronto, Ontario M1C 1X6 www.perimeterpublicaffairs.com Rob@perimeterpublicaffiars.com Date: April 2013 12-2116 4 - 17 TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................... I 1.0INTRODUCTION .................................................... 1 1.1Introduction ................................................................ 1 1.2The Assignment ................................................................ 2 2.0ECONOMIC CONTEXT ......................................... 5 2.1Growth and Competitiveness .................................................... 7 2.2 ................................... 9 2.3Policy Context ................................................................ 14 2.4Growth Pressure & Opportunities for Waterloo Region ......... 18 3.0EXISTING ECONOMIC DEVELOPMENT FRAMEWORK ...................................................... 21 3.1Overview of Existing Framework & Responsibilities .............. 21 3.2Stakeholder Commentary ....................................................... 25 3.3Gaps and Redundancies ......................................................... 35 3.4SWOT Analysis of Current Waterloo Region Economic Development Framework ........................................................ 44 4.0COMPARATIVE ANALYSIS: COMMUNITIES AND BEST PRACTICES .................................................. 49 4.1Context for Comparative Analysis .......................................... 49 4.2Regional Economic Development .......................................... 50 4.3Comparator Community Summary ........................................ 57 5.0FRAMEWORK OPTIONS ...................................... 73 5.1Economic Development Requirements ................................. 73 5.2Organizational Options ............................................................ 76 5.3Evaluation of Options; Risk and Opportunities ...................... 84 MALONE GIVEN PARSONS LTD. 4 - 18 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 6.0EMPLOYMENT LAND OPTIONS ........................... 89 6.1Industrial and Business Park Lands .......................................... 89 6.2Ensuring Land Supply ................................................................ 92 6.2.1Need for a Risk Perspective ........................................ 92 6.2.2Estimates of Supply and Demand for Employment Land ................................................................ 93 6.2.3Role of the Private and Public Sectors ...................... 94 6.2.4Alternative Approaches to Providing Industrial & Business Park Lands ...................................................... 95 7.0CONCLUSIONS, RECOMMENDATIONS AND IMPLEMENTATION ............................................ 103 7.1Conclusions ................................................................ 103 7.2Recommendations ................................................................ 105 7.3Implementation ................................................................ 108 STAKEHOLDER CONTACT LIST APPENDIX A LEGAL EXTRACTS APPENDIX B COMPARATIVE ANALYSIS APPENDIX C EMPLOYMENT LAND USE MAPS APPENDIX D WATERLOO REGION ECONOMIC DEVELOPMENT APPENDIX E EXPENDITURES BIBLIOGRAPHY APPENDIX F EXISTING LOCAL ECONOMIC DEVELOPMENT APPENDIX G SERVICES LIST OF FIGURES Figure 2.1 Waterloo Region within the Western GGH Context ........................................ 6 Figure 2.2 Economic Activity Index................................................................ 9 Figure 2.3 Composite of Regional Official Plan Maps 2, 3a-e & 7 ................................ 16 Figure 5.1 Development Framework: Foundations, Strategies and Outcomes ......... 75 Figure 6.1 Regional Employment Lands ................................................................ 90 Figure 6.2 Vacant Industrial Land Prices and Development Charges..... 91 MALONE GIVEN PARSONS LTD. 4 - 19 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS LIST OF TABLES Table 2.1 Population Forecast ................................................................ 7 Table 2.2 Employment Forecast ................................................................ 8 Table 2.3 Population and Employment Forecast (as per Waterloo Ne 2011) ................................................................ 17 Table 3.1 Shared Responsibilities ................................................................ 22 Table 3.2 Responsibilities Not Shared ................................................................ 22 Table 3.3 Gaps and Redundancies ................................................................ 43 Table 3.4 SWOT Analysis ................................................................ 46 Table 4.1 Economic Development Then and Now ......................................................... 51 Table 4.2 Selected Southern Ontario Economic Development Deliver ................................................................ 53 Table 4.3 Communities with Region, Multi-Tiered Economic Develop ................................................................ 58 Table 4.4 Communities with Multi-Tiered Structure Ontario ........................................ 62 Table 4.5 Selected Municipal External Economic Development/Real Development Corporation ................................................................ 66 Table 4.6 Summary Best Practices ................................................................ 69 Table 5.1 Proposed Economic Development Framework Options .............................. 82 Table 5.2 Evaluation of Options; Risk and Opportunities ................................................ 85 Table 6.1 Region of Waterloo Industrial and Business Park Vacant 2009 ................................................................ 89 Table 6.2 Employment Land Development Options ....................................................... 98 Table 6.3 Evaluation of Employment Land Options; Risk & Opportun................ 100 Table 7.1 Proposed High Level Implementation Plan ................................................... 108 MALONE GIVEN PARSONS LTD. 4 - 20 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY MALONE GIVEN PARSONS LTD. 4 - 21 EXECUTIVE SUMMARY INTRODUCTION Waterloo Region has enjoyed several decades of sustained economic growth. Over the past few years, there has been a growing debate as to the best approach to ensuring continued economic growth within the Waterloo Region. This debate has focused on three main questions: Is the current framework for the governance and delivery of economic development meeting the needs of the regional economy? What other options should be considered? In particular, how can the constituent Municipalities ensure that there is a continual renewal of the available supply of employment lands? This study addresses these three questions and provides options on both a framework for economic development, and approaches to employment land development and sale. ECONOMIC CONTEXT The study addresses the current economic and policy context facing Waterloo Region, and provides an overview of the regional growth expectations; its competitiveness relative to other Ontario regions; the planning policies that will influence goals and delivery of economic development; and the supply and provision of employment lands. Waterloo Region is part of the Greater Golden Horseshoe (GGH) urban complex with a combined current population of 9 million people. Yet Waterloo Region remains separate and distinct economically, historically, and culturally from the main urban mass of the Greater Toronto Area (GTA). economy is growing and performing well relative to its Ontario competitors. Typically associated with high tech companies, Waterloo Region has several other business clusters that have demonstrated exceptional success including; advanced manufacturing, financial services, food processing and life sciences. Waterloo R-secondary institutions; the University of Waterloo, Wilfrid Laurier University, and Conestoga College, collectively are recognized internationally for their research, innovation and talent creation capabilities. MALONE GIVEN PARSONS LTD. i 4 - 22 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The current planning and economic development policy framework for Waterloo associated Greater Golde Plan and 2011-2014 Strategic Plan. The Growth Plan identified three areas in Waterloo Region as significant urban growth areas; Downtown Kitchener, Uptown Waterloo and Downtown Cambridge. The Growth Plan also recognizes the importance of protecting employment, promoting economic development and maintaining economic competitiveness. kes no reference to a need for an economic development strategy, which the region does not yet have. The 2011-2014 Region of Waterloo Strategic Plan identified the immediate need for action on three economic development initiatives: 1-Make the East Side Employment Lands development ready; 2-Continue to identify partnership opportunities that foster innovation and economic development; and 3-Strengthen the coordination and implementation of economic development activities across the region through clarification of municipal and stakeholder roles and responsibilities. The Greater Golden Horseshoe Plan projects significant growth in the western GTA and Hamilton, and significant growth is also expected for the outer ring portion of the GGH which includes Waterloo Region. The latest projections for Waterloo Region have the population rising from 526,000 to 729,000 and employment rising from 282,000 to 366,000 by 2031. While much of the GGH employment growth is destined for the 905 area (Halton, Peel, York and Durham Regions), large 905 land banks are approaching build out and new strategic land locations are not being protected for future employment use. Waterloo Region, as the largest outer ring municipality should see considerable interest in its employment lands foroffice, industry and business services. EXISTING ECONOMIC DEVELOPMENT FRAMEWORK structural weaknesses in the current economic development framework. The current economic development framework does not fully meet the needs of the regional business clusters, other economic development stakeholders, and the public at large. MALONE GIVEN PARSONS LTD. ii 4 - 23 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Examples of this underachievement include: gaps in, and absence of, useful regional economic data; dated and often confusing marketing and promotion initiatives; lack of resources to deliver basic economic development service across Waterloo Region; poor stakeholder comprehension of their contribution to economic development; lack of trust vertically and horizontally across the region; and the absence of a coherent multi-level regional economic development strategy. Despite this fragmented and poorly coordinated economic development network, there is consensus among stakeholders on the need for a regional approach to economic development, on their willingness to participate in regional economic development, and that the Region of Waterloo should provide leadership in delivering this approach. COMPARATIVE ANALYSIS: COMMUNITIES AND BEST PRACTICES Three sets of comparator communities with relevance to the Waterloo Region situation were evaluated: multi-tiered regional economic development organizations; existing multi-tiered municipalities in southern Ontario; and single- tiered municipalities with economic development and/or real estate development subsidiaries. Results of this analysis indicate that: 1.Business success is more commonly associated with a regional cluster approach; 2.Regional business clusters require engagement at a wider regional level; 3.Single-tier municipalities favour external economic development organizations; and 4.Two-tier regional/local municipalities favour a combination of internal and external economic development organizations. REGIONAL ECONOMIC DEVELOPMENT STRATEGY The first requirement for a new approach to economic development is the creation of a Regional Economic Development Strategy that takes advantage of the inherent strengths of the region and which effectively deploys resources to ensure a sustainable and growing regional economy. MALONE GIVEN PARSONS LTD. iii 4 - 24 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS , in concert with the major economic stakeholders, should embark immediately to establish a clear and effective strategy that will create a new economic vision for Waterloo Region, and which will provide a renewed consensus on the means of achieving the vision. FRAMEWORK OPTIONS A number of viable framework options for the delivery of economic development services within Waterloo Region were identified. All are potentially implementable within the existing governance structure in Waterloo Region. Criteria for developing the options were drawn from the current local and regional context, current economic development issues, and from the experiences of other jurisdictions with similar issues and best practices. Five options for delivering economic development services were defined along a continuum of increasing change and intervention. These are: 1-The status quo; 2-Enhanced regional alignment and coordination; 3-Regional Economic Development Corporation (jointly owned by all eight Municipalities), with shared responsibility for implementing an economic development strategy with local Municipalities; 4-Regional Economic Development Corporation (jointly owned by all eight Municipalities), with sole responsibility for implementing all aspects of an economic development strategy; and 5-Consolidation of all economic development functions and services within a department of economic development within the Regional Municipality of Waterloo. Our preferred approach is Option 3, a single non-profit agency that is separate from, but controlled by, the eight Municipalities and is responsible for implementing regional economic strategy, marketing and promotion, coordination of corporate relationships, and advocacy with other levels of government. It would not be directly involved in the development and/or sale of the land. This Option would see the local Munic- development functions. MALONE GIVEN PARSONS LTD. iv 4 - 25 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS EMPLOYMENT LAND OPTIONS The current model for the provision of employment land is a mix of municipally and privately owned land that has been successful in meeting most but not all local employment land demand. With its educational, entrepreneurial, cultural, and transit assets and lower costs, Waterloo Region will become an increasingly attractive location for new or expanding business relative to the western GTA Municipalities. The current employment land supply in Peel and Halton will be depleted within 10 years, resulting in rising prices in these areas relative to Waterloo Region. It is an essential requirement of successful and transformational economic development that there be a sufficient supply of available employment land at all times. Our preferred approach is to create and utilize a Special Purpose Development Corporation to develop strategic employment lands on the east side, including those adjacent to the airport and other strategic employment lands as determined. Existing municipal roles in employment land development would remain intact. Over the longer term, the strategy should be to ensure that the major role of developing and selling employment lands transitions to the private sector. MALONE GIVEN PARSONS LTD. v 4 - 26 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY MALONE GIVEN PARSONS LTD. vi 4 - 27 1.0 INTRODUCTION Waterloo Region has a strong economy that has been performing well. However, there are challenges and opportunities that lie ahead. This report identifies alternative approaches for the governance and economic development services. In particular, the studyevaluates alternative approaches for ensuring an appropriate supply of available employment land. 1.1Introduction Waterloo Region has benefited from its many strengths and from its strong brand as a place of profitable enterprise, creative and industrious people, an intellectual nexus of thought leadership, a diverse high quality lifestyle, and effective community leadership. It benefits from a global perspective that is reflected in the destination of its university graduates and the market reach of many of its local companies. It also benefits from a local focus that has led to continual improvements to urban infrastructure and civic amenities. Over the past few years, there has been a growing debate as to the best approach to ensuring continued economic growth within the Waterloo Region. This debate has focused on three main questions: Is the current framework for the governance and delivery of economic development meeting the needs of the regional economy? What other options should be considered? In particular, how can the constituent Municipalities ensure that there is a continual renewal of the available supply of employment lands? Implicit in these questions is: how can the Waterloo Region stay aggressively ahead of the curve and stake out its position as a location of choice for the best companies in the nation, the continent, and the world? 4 - 28 MALONE GIVEN PARSONS LTD. 1 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS In the course of completing this review of the structure and function of economic development services in Waterloo Region, Malone Given Parsons Ltd. (MGP) met with representatives from over 40 organizations involved in, or with, economic development across Waterloo Region. As expected, a wide range of opinion was offered on the local state of economic development, including: the decline in traditional manufacturing; the emergence of education, research and innovation as drivers of economic development; other emerging business clusters; and the role of all three orders of government, federal, provincial and municipal in economic development. Two clear themes emerged from this input. The first theme is that the region has a strong economy that has been performing well. The region has exhibited dynamic growth over the past several decades, rising standards of living and incomes, healthy local business communities, diverse and engaged sectors, place-based advocacy groups, world class local post secondary institutions, and a rare resiliency in the regional economy, given difficult international circumstances. The second theme sees a region that is not fully capitalizing on its strengths and consequently is at risk of being less dynamic, competitive and successful. There is a lack of coherent strategy and lack of effective coordination amongst the many organizations involved in economic development. This has resulted in missed opportunities, loss of at least one major company, declining national significance of remaining head offices, fragmentation of local service delivery, and internal competition rather than cooperation and collaboration. 1.2 The Assignment MGP, in association with Perimeter Public Affairs, have been retained by the Region of Waterloo together with the 7 local Municipalities to evaluate and present options on how economic development is delivered regionally through a network of approximately 34 agencies, providing a range of services at the community, local, regional and international levels. The terms of reference for the study, the MGP proposal, and subsequent discussion achieved consensus on the following project priorities. Questions that need to be answered included: 1.Economic Development Who is doing what, and is there overlap? Where are the gaps, and what improvements can be made? 2MALONE GIVEN PARSONS LTD. 4 - 29 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS What is the experience of comparator communities, and what is considered to be best practice? What unique approach can Waterloo Region take? Consider the practical options for organizing the creation and implementation of an economic development strategy. 2.Employment Land How should municipalities be approaching the employment land development issues? What is the role of greenfield employment versus infill & intensification of existing sites? How can an appropriate supply of available vacant employment land be ensured? The study approach involved the following tasks: Review of the organizational framework for economic development; Interviews with key stakeholders; An assessment of existing performance gaps, overlaps & resources of the existing economic development framework; Review and analysis of the economic development approaches taken by selected comparator communities; Identification of the requirements for economic development; and, Identification and evaluation of the governance and organization options for delivery of economic development and for ensuring land supply. Organization of the Report This report is organized in the following format: Section 2: Context on regional economic position; planning policies; and, issues surrounding the provision of employment land; Section 3: Overview of the existing economic development framework including regional and municipal responsibilities and mandates; Section 4: Comparator communities and best practices and lessons; Section 5: Overview and detailed description of proposed framework options including an evaluation of each option considering both the risks and opportunities; Section 6: Overview and detailed description of proposed land development options including an evaluation of options; and, MALONE GIVEN PARSONS LTD. 3 4 - 30 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Section 7: Conclusions and recommended approaches, including a high level implementation sequence. Definitions The geographic region encompasses 7 local municipal jurisdictions: the City of Waterloo; the City of Kitchener; the City of Cambridge; the Township of Wilmot; the Township of Wellesley; the Township of Woolwich and the Township of North Dumfries. In addition the Regional Municipality of Waterloo provides services and infrastructure to all local municipalities. geography encompassed Regional Municipality of Waterloo the . 4MALONE GIVEN PARSONS LTD. 4 - 31 2.0 ECONOMIC CONTEXT terms of its Ontario competitors; While Waterloo Region is recognised as a significant urban growth centrefor the Province, it doesnothave a regional economic development strategy; and, In the medium and long term, the rapid growth of the western GTA municipalities presents a significant strategic opportunity for Waterloo Region. Waterloo Region, located in the economic heart land of Canada, has a unique geographic position. While it is situated within the Greater Golden Horseshoe, which encompasses a population of 9 million people, and has very close linkages to the larger economy, Waterloo Region remains separate and distinct from the main urban mass of the Greater Toronto Area. It has unique history and cultural attributes that enable it to benefit from its proximity to the Toronto economy without being overwhelmed by its urban neighbours to the east. Its proximity to Toronto provides important economic and transportation linkages and an easy locational legibility to potential markets beyond Canada. At the same time, its separateness provides a high quality of life, distinct character, competitively priced economic inputs, and a world recognized quality of technical talent being produced by three post-secondary institutions. Before focusing on economic development in Waterloo Region, it is helpful to he policies that relate to economic development. The following section provides: A review of planning policies that are most salient to the goals and delivery of economic development within Waterloo Region; and, 4 - 32 MALONE GIVEN PARSONS LTD. 5 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS An overview of the issues surrounding the provision of employment land throughout the region. Figure 2.1 below maps Waterloo Region in the context ofits surrounding economic competitors: Guelph; Brantford; Hamilton; and the western GTA municipalities. Figure 2.1 Waterloo Region within the Western GGH Context 6 MALONE GIVEN PARSONS LTD. 4 - 33 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 2.1Growth and Competitiveness The series of tables that follows show the expected growth in population and employment within the Waterloo Region and its surrounding competitor municipalities. From this, the following salient observations can be made: Waterloo Region is generally similar, or greater, in population to the nearby cities that are competitors including the urban areas that compose Halton Region. Waterloo Region has greater expected growth in both population and employment than nearby cities and regions, although Halton Region will grow somewhat faster. The western GTA regions of Halton and Peel can be considered as competitors for business investment, but also as sources of business establishments that could migrate west to Waterloo Region. Costs of labour and land are generally lower in Waterloo Region than in the western GTA and Waterloo Region has other attractions; universities, high quality city, small town and rural environments. Table 2.1 Population Forecast 2011-2031 201120212031% Increase Waterloo Region28% 526,000 623,000 729,000 London17% 366,140 404,600 443,500 Hamilton18% 540,000 590,000 660,000 Halton Region 520,000 650,000 780,000 33% Peel Region 1,320,000 1,490,000 1,640,000 20% Brantford 97,925 107,258 n/a n/a Guelph29% 125,000 148,000 175,000 Source: Waterloo Region, Hamilton, Peel Region and Halton Region Population Forecasts based on Places to Grow. Brantford Official Plan 2011; Guelph Official P Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and, City of London Employment, Population, Housing and Non-Residential Construction Projections 2011 Update (Draft 2012) by Altus. MALONE GIVEN PARSONS LTD. 7 4 - 34 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table 2.2 Employment Forecast 2011-2031 201120212031% Increase Waterloo Region 282,000 324,000 366,000 23% London 189,674 211,630 229,337 17% Hamilton 230,000 270,000 300,000 23% Halton Region 280,000 340,000 390,000 28% Peel Region 730,000 820,000 870,000 16% Brantford 47,685 54,910 n/a n/a Guelph 74,680 88,790 100,390 26% Source: Waterloo Region, Hamilton, Peel Region and Halton Region Forecasts based on Places to Grow. Brantford Official Plan 2011 Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and, City of London Employment, Population, Housing and Non-Residential Construction Projections 2011 Update (Draft 2012) by Altus. TEconomic Insights into 15 Canadian Metropolitan : Waterloo Region will achieve the highest economic growth in Canada among medium-sized cities in 2012. e 4.5 percent in 2012. Gross Domestic Product will growin Waterloo Region by 3.3 percent in 2012, down from 3.9 percent in 2011. Unemployment in Kitchener, Waterloo and Cambridge is projected to fall from 6.8 percent in 2011 to 6.2 percent by the end of 2013. The CIBC World Markets' Metropolitan Economic Activity Index, 2012 places Waterloo Region as the third strongest economy among for the third quarter of 2011. This Index was based on nine key macroeconomic variables and drivers of economic growth; population growth, employment growth, unemployment rate, full-time share in total employment, personal bankruptcy rate, business bankruptcy rate, housing starts, MLS housing resales, and non-residential building permits. The Index is designed to capture the rate of change in the level of economic activity among Canada's largest 25 cities. 8 MALONE GIVEN PARSONS LTD. 4 - 35 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure 2.2 the third quarter of 2011. Waterloo Region has been represented as Kitchener CMA and has been ranked third behind Toronto and Edmonton. In comparison, thnd Hamilton is ranked 13 and London 22. CIBC World Relatively strong employment momentum; Strong housing and real estate markets; High quality jobs, important for income growth; and, Low rate of business bankruptcies. Figure 2.2 Economic Activity Index Source: CIBC (Canadian Cities: An Economic Snapshot Toronto Continues To Lead the Pack, January, 2012) 2.2Business Advantage Many factors have given Waterloo Region a competitive edge, leading to the successes it continues to experience: Its strategic position west of Toronto; A labour force and consumer market of 2.7 million people within a 45 minute drive; Ready access to major transportation corridors, and three Canada-US border crossings; MALONE GIVEN PARSONS LTD. 9 4 - 36 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Access to national railroads; Access by regional transit (GO Transit) to the City of Toronto downtown; Access to the Region of Waterloo International Airport and close proximity tos Pearson International Airport; A low corporate tax rate and low energy prices; and, World class education/research institutes and a multicultural workforce with advanced skills. The region has received some high accolades for excelling in a range of sectors: The City of Waterloo was named Top Intelligent Community 2007 by the Intelligent Community Forum; ; The Tannery District in Kitchener awarded best overall project in Canada by the Canadian Urban Institute (2011); the Future in 6 of 8 categories (2011/2012); by Site Selection magazine; and, The Real as the Top Ontario Investment Town 2009-2014; While being predominantly associated with the high tech industry, Waterloo Region boasts exceptional success and expertise in a variety of industries. We have captured some of the prominent strengths of these industries, along with listing some of the key industry players. High Tech Industry With regard to the tech sector in Waterloo Region, Communitech has highlighted somenoteworthystatistics; The tech sector generates $25 billion revenue/yr; There are approximately 1000 tech firms located in the Region; There are in excess of 400 burgeoning start-ups (significant given a population of approximately 500,000); There are 30,000 employed at tech firms; There are 1,600 open tech jobs; 123% growth rate in software careers; Over $0.5 billion in acquisitions in 2010; 10 MALONE GIVEN PARSONS LTD. 4 - 37 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Waterloo Region is home to; Can BlackBerry; o Open Text; o projection technology company Christie Digital; o Com Dev; o A new startup company is established every day at the Communitech hub; and, More than $84 million raised by companies in 2011 at the Communitech hub alone. Educational Institutions and Talent Waterloo Region boasts exceptional access to three highly acclaimed post- secondary education institutions; Wilfrid Laurier University, the University of Waterloo and Conestoga College, and their 74,000 post-secondary students. Some highlights include: The University of Waterloo has the largest cooperative education program in the world; innovative university and topping the categories for Best Overall and most likely to produce leaders of tomorrow; More than 22 percent of all spin-off Canadian IT companies have originated in University of Waterloo incubator programs; The University of Waterloo is home to the Waterloo Centre for Automotive Research (WatCAR), supporting major breakthroughs and innovations in the automotive sector; The David Johnston Research & Technology Park is one of the newest research parks in Canada and is uniquely located on the University of e 1.2 million square feet of office space on 120-acres (49 hectares), the Research Park will house thousands of researchers, create new technology jobs, and generate billions of dollars in economic impact; - president of academic and strategic initiatives at the University of Waterloo; ; The School of Business & Economics (SBE) at Wilfrid Laurier University is one of the largest and most innovative business schools in Canada; and, MALONE GIVEN PARSONS LTD. 11 4 - 38 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Conestoga College ITAL offers over 60 career-related programs, and the each year. Advanced Manufacturing Output and productivity in the advanced manufacturing industry continues to rise due to investment in technology advancements in the sector. The strength of industry has been its diversity and ability to adjust to new and emerging market demands, contributing to the sustainable growth of the industry. A Statistics Canada labour force survey, produced in 2010, ranks Waterloo Region first in Canada in terms of the proportion of its labour force employed in the manufacturing industry (20% of total employment). The region also ranks first in Canada in terms of the proportion of businesses in manufacturing. Financial Services The number of businesses and financial institutions in the Kitchener-Cambridge- Waterloo CMA in 2011 rose to 608, employing 21,000 people. Technology Triangle (CTT) have noted that the total employment in the sector has risen from 6.4% to 8.5% in the past 12 years, with the region scoring second highest among Canadian CMAs. Life Sciences Life science has become an emerging cluster in Waterloo Region, with significant recent investments in biotechnology, medical and environmental sciences and in new research facilities such as the new University of Waterloo School of Pharmacy. The presence of leading-edge research facilities, an educated local workforce, and generous R&D tax credits contribute to the appeal of the region. Food Processing The Waterloo-Guelph-Toronto corridor is the largest food manufacturing region in Canada and the third largest in North America. With a comparatively lower overall cost of doing business than in the United States, access to more than 450 million North American consumers, access to ingredients and a stable market place, Waterloo Region is an extremely attractive location for food business. Planned or Recent Investment/Future Growth Generators The following recent or planned investments are expected to play a significant role in the future prosperity of the region: 12 MALONE GIVEN PARSONS LTD. 4 - 39 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The planned $66 million expansion of Kitchener Public Library; The construction of a global innovation exchange building at Wilfred Laurier University, for students in business, mathematics, and economics; Expansion of Eclipse Automation in Cambridge; A $100 million investment by Toyota to expand its facility in Cambridge, creating 400 new jobs, in addition to investments in its Woodstock plant; The Government of Canada's investment of up to $4.4 million, provided through FedDev Ontario's Investing in Business Innovation initiative, to support the expansion of a number of companies in the region. The investment is expected to support the creation of 210 jobs; $818-million LRT project due to begin in 2014, and following developments along the major transit nodes; 44-bed extension to Cambridge Memorial Hospital, 2013; Conestoga College; expansion of its Doon campus; and, The opening of the $160-million, 25,650-sq.m. Mike & Ophelia Lazaridis Quantum-Nano Centre at the University of Waterloo in September 2012. International Competitiveness to David Abney, COO of UPS which has recently invested $300 million in its Canadian operations. Attributing FTAs it is continuing to negotiate with emerging markets as clear indicators that The Global Competitiveness Index 2012 2013 released by the World Economic th Forum in early September 2012, ranks Canada at 14 place. According to The Conference more needs to be done all levels of government, all sizes of business, and all types of educational institutions have an important role to play The report highlights that Canada continues to benefit from a number of factors including: Its efficient markets; Strong financial institutions; Well-functioning government institutions; and, Good infrastructure. MALONE GIVEN PARSONS LTD. 13 4 - 40 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The Conference Board of Canada is addressing a number of the challenges identified in the Global Competitiveness Report 2012-13 through its Centre for Business Innovation; a five year initiative that will help bring about major improvements in firm-level business innovation in Canada. Canada recently was cited as having the best job creation record in the G7; with the addition of 52,100 new jobs being added to the Canadian economy during September 2012. T-quarter survey also notes that 46 percent of senior executives expect the number of employees at their companies to increase in the next year, up from 41 percent in the second-quarter survey. The implication for Waterloo Region is that although Canada is a competitive country internationally, it could be taking greater advantage of that fact. Given gy and manufacturing, it can be expected to benefit disproportionately from international recognition of 2.3Policy Context Anumber of legislative documents guide and promote economic development within the Region of Waterloo: The Places to Grow Act and subsequent Growth Plan; Regional and Municipal Official Plans; and, Region of Waterloo Strategic Plan. The Growth Plan The Growth Plan, which guides population and economic growth in the Greater Golden Horseshoe, places particular emphasis on Urban Growth Centres and identifies three Urban Growth Centres within the Waterloo Region: Downtown Kitchener, Uptown Waterloo and Downtown Cambridge. Although these Growth Centres focus on the central areas, the fact that there are three located within importance. 14 MALONE GIVEN PARSONS LTD. 4 - 41 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The Growth Plan protects employment areas and legislates for an adequate supply of land for employment areas and employment uses. The Growth Plan recognizes employment lands as an important tool for promoting economic development and ensuring overall competitiveness. The focus of the Growth Plan is to achieve a long term distribution of growth amongst the affected jurisdictions. It provides a normative objective for the long term distribution, but is not focused on detailed land use requirements and needs over a short term horizon, essential for the management of the economic growth process. From a perspective of attracting and accommodating employment, the focus must also be on the continual immediate requirements for land and infrastructure. This is reflected within the Growth Plan in the recognition of the need for ready and accessible infrastructure as a key driver for attracting investment and maintaining economic competitiveness. Region of Waterloo Official Plan The Region of Waterloo Official Plan (currently under appeal at the Ontario Municipal Board) sets out the planned urban growth for Waterloo Region. Most growth is expected to occur in the existing Built-Up Areas through reurbanization. In addition to the three Urban Growth Centres, which are expected to employment growth, the Region anticipates new growth and development to occur in Urban Designated Greenfield Areas and the Township Urban Areas designation. MALONE GIVEN PARSONS LTD. 15 4 - 42 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure 2.3, produced from a composite of maps from the Region of Waterloo Official Plan, illustrates the planned urban growth for Waterloo Region. Figure 2.3 Composite of Regional Official Plan Maps 2,3a-e, & 7 16 MALONE GIVEN PARSONS LTD. 4 - 43 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table 2.3 sets out the population and employment forecasts for Waterloo Region 1 to 2029 as per the Regional Official Plan. Table 2.3 Population and Employment Forecast (as per Waterloo New Regional Official Plan) %% Population Employment Population Employment increase increase 2006202920062029 2006-20292006-2029 City of 101,700137,00035%64,07088,00037% Waterloo City of 214,500313,00046%99,380130,00031% Kitchener City of 123,900173,00040%75,220100,00033% Cambridge Township of 20,10032,50062%13,54018,80039% Woolwich Township 17,70028,50061%6,7309,70044% of Wilmot Township of 10,10012,00019%3,2904,10025% Wellesley Township of North 9,20016,00074%6,0808,40038% Dumfries Total Waterloo 497,200712,00043%268,310359,00034% Region Source: The Region of Waterloo Official Plan Note: The Waterloo Regional Official Plan is currently under appeal at the OMB. numbers and planning horizon are subject to change The Regional Official Plan identifies its goal, objectives and corresponding policies which will guide economic development in the Region over the next 20 years.The overall goal indentified is as follows: Collaborate with Area foster a diverse, innovative and globally competitive regional economy. There are two important features of the Region of Waterloo Official Plan that are salient to economic development. The first is that the Official Plan does not stake out a clear and explicit economic development role for the Region of Waterloo d is that there is no statement that refers to the need for an economic development strategy for the Region. The Region of Waterloo Strategic Plan, 2011-2014 identifies five focus areas as Council priorities: Environmental sustainability; 1 Note The Region of Waterloo has been requested by the MMAH to revise forecast horizon to 2031, therefore the forecasted horizon is subject to change. MALONE GIVEN PARSONS LTD. 17 4 - 44 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Growth management and prosperity; Sustainable transportation; Healthy and inclusive communities; and, Service excellence. With respect to priority 2 above, Growth Management and Prosperity, the Region has identified the following priority actions: Continue to manage and shape growth. Ensure infrastructure meets the demands of a growing community. Enhance our arts, culture and heritage. Strengthen partnerships with all orders of government and our community partners to plan and manage growth. Support a diverse, innovative and globally competitive economy. 2.4Growth Pressure & Opportunities for Waterloo Region The rapid employment and population growth in the western GTA municipalities presents an opportunity for Waterloo Region. As Peel and especially Halton Region continue to grow and consume employment land, Waterloo Region is expected to experience increasing market pressure for its employment land portfolio. The success of the Peel and Halton Regions ultimately means higher land prices in those regions which will create more interest in Waterloo Region which has lower land values, within a very attractive urban context. This will be amplified by traffic congestion, particularly at peak hours, along the 401 in Halton and Peel. This future pressure on Waterloo Region is evident in the most recent economic forecasts released by the Province. While the GTAH will continue to lead growth, the Outer Ring portion of the GGH will also see strong growth throughout this planning period. More dramatic is the planned growth of the western portion of the GGH that includes communities in the inner GTAH portion of the GGH, including the City of Hamilton, and the western part of the Outer Ring of the GGH including the Region of Waterloo, and the Cities of Guelph and Brantford. This area was first identified by The Center for Spatial Economics in a 2008 report for Canada`s Technology Triangle (CTT). In this report they note that the population of this sub-region is almost 1,500,000, employment of 766,000, $49 billion in income and $36 billion in household expenditures. 18 MALONE GIVEN PARSONS LTD. 4 - 45 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS These figures are very similar to the figures for the City of Calgary which had $51 billion in income, and household spending of $36 billion at the time the report was prepared. What do these trends mean for Waterloo Region? The continuing shift of employment from manufacturing to service based, results in corresponding shift towards office space, rather that manufacturing space. Waterloo Region, with the only significant office space market in the Outer Ring area of the GGH, and its urban/educational amenities, should be well positioned to benefit from this trend. Immigration will continue to drive population growth, with 94% of the immigration residing in the GTAH and the remaining 6% in the Outer Ring of the GGH. Waterloo Region is the overwhelming choice for immigrants destined for the Outer Ring. Of the 6%, 4.5% or 75% of immigration growth in the Outer Ring is into Waterloo Region. Waterloo Region is currently the only part of Outer Region with positive inflow for workers, a trend which is expected to continue. Ontario manufacturing output has grown faster than rate of employment due to efficiency and productivity improvements. This is good news for Waterloo Region, with a mixed economy, and a strong manufacturing base that is now more competitive, both in the domestic and international market places. In a 2011 presentation on growth management in the GGH, MGP noted that: Approximately 75% of GGH employment growth is destined for the 905 o area of the GGH; However, large 905 land banks are approaching build out; and o The remaining strategic employment land locations are not now being o protected for future employment use. This convergence of supply and demand for new employment land in the western part of the GGH should result in a strategic shift towards private sector involvement in employment lands acquisition and development in the Outer Ring. Waterloo, as the largest municipality in the Outer Ring, its close proximity to both the GTA and the Canada US border, should see considerable interest in its employment lands for both office and industrial purposes. MALONE GIVEN PARSONS LTD. 19 4 - 46 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY 20 MALONE GIVEN PARSONS LTD. 4 - 47 3.0 EXISTING ECONOMIC DEVELOPMENT FRAMEWORK Despite many strengths, there are a number of weaknessesin the current economic development framework indicating that the current system is not fully meeting the needs of the regional economy: Absence ofa regional approach to economic development; A gap in available data; Inconsistentmarketing approach; A lack of resources, particularly in the rural municipalities; Trust issues; and, An unclear understanding of stakeholder involvement in economic development. 3.1Overview of Existing Framework & Responsibilities Waterloo Region operates under a two tier municipal structure, with the upper tier municipality, the Region of Waterloo, delivering services on a regional scale, in addition to the services provided by the 7 lower tier municipalities, including; Planning, Housing and Community Services, Social Services, Transportation and Environmental Services and Public Health. Tables 3.1 and 3.2 summarise the difference between Regional and Municipal functions, including shared and non shared responsibilities. 4 - 48 MALONE GIVEN PARSONS LTD. 21 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table 3.1 Shared Responsibilities Region of Waterloo Local Area Municipalities Water Supply (for all municipalities) Wastewater Treatment (for all municipalities) Water Distribution for Wellesley and North Dumfries Water Distribution Wastewater Collection for Wellesley and North Wastewater Collection and Billing Dumfries Regional Roads (Main Arterial) and Traffic Signals Local Streets (Residential and Collector) Regional Official Plan and Policies Zoning By-laws and Neighbourhood Plans Rural Library System City Library System Emergency Response (Ambulance) Emergency Response (Fire Protection) Debentures (for all municipalities) Tax Collection (for area and region) Regional Licensing and By-Law Enforcement (e.g. Local Licensing and By-law Enforcement (e.g. taxis, lawn watering, tree cutting etc) parking, noise, property standards etc) Table 3.2 Responsibilities Not Shared Region of Waterloo Local Area Municipalities Public Health (Child and Family Health, Healthy Living, Building Inspections and Permits Sexual health, Infectious Diseases Programs, Dental Health Programs, Population Health Assessment, Emergency Medical Services, and Health Protection.) Social Services (Employment and Income Support - Cemetery Management Ontario Works, Social Planning) Waste Management (Landfill, Recycling, Collection) Vital Statistics (Births, Deaths, Marriage) Public Transit (Conventional and Specialized) Land Severances Region of Waterloo International Airport Local Economic Development Cultural Services (Waterloo Region Museum, Parks and Recreational Programs Schneider Haus and McDougall Cottage) Emergency Planning Community Housing Provincial Offences Court Administration 34 Organisations Delivering Economic Development At present, there are 34 organizations within the region that have an economic development function that is part of their mandate and program activities. At the municipal level, this includes the three Cities, the four Townships, and the Region of Waterloo. The many agencies also include the universities, college, development corporations, chambers of commerce, employment organizations and other cross jurisdictional organizations. Below is a summary of the primary focus or functions of some of the key organisations or groupings of organisations. 22 MALONE GIVEN PARSONS LTD. 4 - 49 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Region-Wide Functions The Region of Waterloo currently does not have a proactive role in coordinating economic strategies, or delivery of economic development. It does however have an enabling or coordinating role in labour market development, employment land, infrastructure, data collection, research, policy development and review, quality of life initiatives, regional economic development and integration with provincial and federal bodies. A number of functions are delivered on a region-wide scale, primarily from the three not-for-profit organizations; CTT), Creative Enterprise Initiative, and Waterloo Regional Tourism Marketing Corporation. The key functions delivered by these three organizations are foreign direct investment, capacity building in the creative sector, and tourism respectively. The Cities of Waterloo, Kitchener & Cambridge The three Cities are involved in business attraction, business expansion and retention, employment land and community development. Their role also extends to marketing, infrastructure, data collection, research, policy development review and accessing funding. By history and geography, the three cities have complimentary but somewhat different roles. T namesake, is focused primarily, but not exclusively, on the tech sector. As the home of the University of Waterloo, and the David Johnston Research and Technology Park, it is more closely associated with technology; itis active in promoting foreign direct investment and the retention of businesses. The City of Kitchener has an active economic development focus on higher order service sectors, administration, culture and tourism. It is engaged in economic development, business retention, marketing, and culture and tourism. The City does not have significant greenfield employment land and focuses more on the office orientated service sectors that typically locate in the downtown core as well as brownfield redevelopment. The City of Cambridge has the largest industrial employment base and has been focusing on developing and marketing greenfield sites. Cambridge has also made significant achievements in creating a high quality urban character in the core area. It too has active programs in foreign direct investment, marketing and business retention. MALONE GIVEN PARSONS LTD. 23 4 - 50 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The Townships of North Dumfries, Wellesley, Wilmot &Woolwich The Township of North Dumfries does not have significant involvement in economic development activities, nor does the Township have the available resources to engage in economic development. Interest in greenfield employment land in the past has not resulted in a sale agreement. The Township expansion of its existing employers. The Township is limited by water restrictions and therefore dry industries occupy designated employment lands. Without economic development staff, the Township does not have significant engagement in economic development. The Township of Wilmot has a planner/economic development officer who is engaged in facilitating employment land development and retention primarily. Most queries relating to employment land development received are for serviced lands, in which the area is deficient. The Township of Woolwich has an active economic development department and has prepared an Economic Development Strategic Plan. Their focus is primarily on business retention, expansion & tourism. They are involved in a range of initiatives to support and promote local businesses, including a business visitation program. Agriculture, food and tourism are key sectors for the Township. The private sector has been instrumental in developing employment lands within the Township. Business Associations/Chambers of Commerce Business associations, grouped to include the Chambers of Commerce, the Prosperity Council of Waterloo Region, the Manufacturing Innovation Network, and the Business Improvement Areas, focus primarily on business expansion and attraction, retention and marketing and to a lesser extent on research, policy development and review and community development. Some business associations are focused on specific geographies and/or specific industries. These organizations play a key role within the region as one of the important contact points between the public and private sectors. 24 MALONE GIVEN PARSONS LTD. 4 - 51 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Communitech Is a not for profit organization dedicated to supporting technology companies in Waterloo Region and beyond. Communitech removes barriers within the industry and provides a common place for companies, academics, enterprise and service organizations to come together on innovating collaborations that promote the ology cluster. Founded in 1997, Communitech now supports a network of more than 800 companies that generate more than $25 Billion in revenue. Post Secondary Institutions Post secondary institutions; the University of Waterloo, Wilfrid Laurier University and Conestoga College, play a key role in labour market development, as well as research, data collection, policy development and review as well as improving the quality of life in the region. The institutions assist many of the other organizations in achieving their economic development mandate. 3.2Stakeholder Commentary Over the course of this study, we interviewed individuals from the 34 stakeholder organizations, including the 8 Waterloo Region municipalities, business associations, post secondary institutions, labour force development groups, nongovernmental organizations and provincial organizations. We also met with a number of mayors from Waterloo Region (see Appendix A for a complete list). The objective of the consultation process was to understand how different organizations are involved in economic development, how they interact, how each organization fits into the current economic development framework, and their views on issues, concerns, opportunities and gaps. Broadly, our confidential discussions revealed that there is a commitment by all to working towards ensuring that Waterloo Region is as successful and vibrant as it can possibly be. At the same time, there are concerns surrounding the effectiveness and focus of the existing economic development framework. There is a general willingness to embrace change and to coordinate efforts if in doing so it will make the current system more efficient and beneficial to the region as a whole. MALONE GIVEN PARSONS LTD. 25 4 - 52 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Section 3.2 summarizes some of the feedback we received, our observations, and highlights some of the key findings from the consultation phase of the project. We have categorised the findings under common discussion themes that emerged from the consultation process. We noted conflicting views relating to many topics and have not attempted to correct misunderstandings; rather the section should be read as an overview of the perceptions that exist within the region in relation to what is happening in terms of economic development. Organization/Governance Governance of economic development was the most common theme discussed throughout the interview process. There was consensus that changes are needed but different views on the best solution. Below is a sample of the comments received; splintered and there The region curren The current approach to economic development is confused and informal. Collaboration/Interrelationships In terms of collaboration and how different economic development stakeholders interact, there were mixed responses: With its plethora of organization organization h sector at the cost of other There is poor region-wide general business intelligence and regional approach to business attraction and retention. Among the identified stakeholder organizations there is a lack of appreciation for the significance, and importance of their programs to economic development. There is no defined regional economic development governance structure. Relationships between the different organizations appear to be generally very positive and collaborative. Issues of trust have emerged resulting from a lack of information and intelligence sharing from the top down, leading to a lack of confidence in the abilities of others working within the industry. 26 MALONE GIVEN PARSONS LTD. 4 - 53 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Personality conflicts exist, affecting the smooth running of the system. Inefficiencies have been created by an absence of cooperation, leading to overlaps. Key Framework Responses Required : To consolidate and refocus the delivery of economic development functions throughout the region, to make better efficiencies. To improve collaboration, relationships and build trust between organizations. To adopt an effective and comprehensive regional approach to economic development. To promote coordinated economic activity among development among stakeholder groups and across the region. Townships We asked the staff at the Townships what resources or changes would support them to conduct their roles more efficiently. A summary of the main points include: More local economic development staff would be very beneficial. A regional point person to help navigate the system, dealing with planning policy issues and servicing related queries. There is a need to revisit the regional brand. The greatest obstacle prohibiting the development of one of the communities is not having broadband. There is a need and desire to develop an economic development strategy with a regional focus. There is also a desire for increased cooperation between the economic development partners. A central source for information relevant to economic development including details of vacant employment lands would be useful. They would like to see better region-wide sharing of information between the stakeholders. An overarching economic development agency with a regional focus is needed. Access to more shovel ready land is required. The Townships should retain a local role in economic development. Key Framework Responses Required: There is a need to address the lack, or complete absence, of economic development resources at the rural townships. Access to up to date regional wide economic development related information and data would be extremely beneficial in improving service delivery at the rural level. MALONE GIVEN PARSONS LTD. 27 4 - 54 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Some Townships feel more aligned to each other than to the wider regional economic development network. There is a need to improve interrelationships and the economic development support network throughout the region. A regional approach to economic development would benefit the Townships. Regional Involvement We asked all interviewed stakeholders how they would view a refocused framework which involved more direct involvement by the Region of Waterloo in terms of economic development. The consultation process revealed: There is a requirement for a regional approach to economic development and that it would be positive for the Region of Waterloo to become more involved in economic development. The general opinion is that the role of the Region of Waterloo should not take away from the role of the municipalities and townships in providing local economic development services. There is a view that increased involvement by the Region of Waterloo would create efficiencies and speedup processes, particularly in terms of bringing employment land to a shovel ready state. A number of different suggested responsibilities emerged in terms of the Region ment land development including: The Region of Waterloo should retain its current status of servicing employment lands, but there is a need to speed up the process, ensure that there is enough available employment land, and cut down on the bureaucracy. support communities to get land to a shovel ready state Some suggested that there is a requirement for the Region to purchase and manage strategically important employment lands, including lands located close to and around the airport, to accommodate and safe guard the future viability of the region. Some questioned whether there should be a stronger role for the private sector. terloo, who would coordinate regional economic development activities and get employment lands moving. Preparation of a regional economic development strategy. Collator and coordinator of data and research. 28 MALONE GIVEN PARSONS LTD. 4 - 55 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS There was support, by some, for the creation of an economic development department at the Region of Waterloo with the Region of Waterloo providing a full service economic development role. This idea has also been resisted by some of the participants who feel that economic development should remain a service that is provided at a local level. There was general consensus that there needed to be more coordination of economic development efforts across the region. A regional point person could be identified at the Region of Waterloo to help navigate the system, particularly in terms of employment land development and in supporting the local municipalities. There was also concern, by some, that if the role of the Region was expanded into providing a full range of economic development services, this could reduce the independence of the area municipalities and could be seen as a move to defacto amalgamation. Key Framework Responses Required : To establish an appropriate economic development role for the Region of Waterloo. To review the roles of the other stakeholder organizations in light of increased Region of Waterloo involvement in economic development. To be mindful of the political complexities. An Expanded Role for C The current and future role of CTT) was a topic of discussion in many of our meetings. There were contradictory observations in terms of the current and envisaged future role of CTT: strategy in terms of where their focus lies and continue to promote the region ing; conducting research and acting as a coordinator of data, taking control of regional tourism with some proposing that CTT would be the most suitable existing organization to rebrand and refocus to offer a full service economic development service. There is confusion surrounding the role and mandate of CTT. In many cases there was an expectation that CTT should be providing additional services outside of its current mandate. Conflicting views surrounding its achievements to date. MALONE GIVEN PARSONS LTD. 29 4 - 56 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Key Framework Responses Required : There is a need for clarity surrounding the role and mandate of CTT. New Overarching Regional Economic Development Organization/Development Corporation There was significant support for a new organization to guide regional economic development in Waterloo Region. Some felt that a new organization was required that would be independent of the Region of Waterloo, the Municipalities or CTT. Such an organization would have a multidisciplinary focus, and be responsible for all or a select number of economic development functions including; marketing, strategy development, data collection and research, tourism and land development. The opposing argument was that there are already too many organizations with an economic development focus, and that adding an additional organization would not be beneficial. It was suggested by some that the CTT itself could be expanded to take on a broader role. Key Framework Responses Required : Consideration to be given to effective mechanisms to establish and coordinate the implementation of a regional economic development strategy. Consideration to be given to the formation of an independent organization to lead economic development across the region. Marketing/Branding Issues surrounding marketing and branding were a significant part of the discussions with all stakeholders. Our discussions revealed: Branding There is confusion surrounding the brand and there is little association with The regional brand may not be as strong as perceived. Marketing There is a demand for a regional marketing and communications strategy. There is a need to establish responsibility for finding, storing and coordinating relevant data on a regional scale and for marketing the region. 30 MALONE GIVEN PARSONS LTD. 4 - 57 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Some areas in the region currently do not have broadband access. Key Framework Responses Required : There is a need to refresh and refocus the regional brand. A comprehensive regional economic development strategy should include a comprehensive marketing and communications strategy. There is a need to establish responsibility for finding, storing and coordinating relevant data on a regional scale and for marketing the region. Marketing material is outdated; it should reflect a technologically advanced community. Data/Information Sharing In many cases, a lack of accessible region-wide economic development and marketing data was identified as a primary obstacle to effective delivery of economic development services. Our key observations include: Suspicions, knowledge gaps and inefficiencies have developed as a result of a lack of openness with regard to information sharing and a lack of a common information base. There is no central generator, collator and repository for accessible relevant regional data and economic research. Organizations are producing useful information that is not readily available or being dispersed throughout the economic development community. Key Framework Responses Required : A centrally managed regionally focused data source, freely accessible to all, would be beneficial to all parties including staff, the public, existing and potential businesses. Strategy Many stakeholders agreed that there is a need for a comprehensive regional economic development strategy. In developing the strategy there has been an appeal to: Expand the regions focus beyond the technology sector and to consider other significant industries. Consider the development of sector specific strategies as part of the overarching economic development strategy. Celebrate the differences between the cities and townships, and to encourage some degree of local competition. Key Framework Responses Required : Development of a comprehensive regional economic development strategy. MALONE GIVEN PARSONS LTD. 31 4 - 58 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Development of a comprehensive regional economic development strategy. Employment Land For stakeholders who have involvement or who have an interest in employment lands, there were some key messages: The most widely identified obstacle to employment land development is a land to a shovel The cost of servicing lands has been highlighted as a limiting factor. The adopted employment land development strategy is short term. There is no mechanism to accommodate for a rolling supply of readily available employment lands. There is confusion generally surrounding how much employment land is actually useable, i.e. for sale or lease and are shovel ready as opposed to those that are notionally available. There is a lack of long term strategic thinking in terms of development of regionally significant parcels of land, the lands surrounding the airport for example. It has been suggested that the private sector is intimidated by the power of the public sector with regard to employment land development, which has kept the Region and municipalities concentrated on ensuring that employment It was argued that the Countryside Line should be revised, that the current restrictions are impractical and inhibits development. Key Framework Responses Required : Need to establish and maintain a registry of employment lands for the entire region which captures all relevant information pertaining to the lands; which lands are serviced, vacant, shovel ready, for sale, size of parcels, zoning etc. There is a need to think strategically about land and what is best for the long term viability and success of the region. There is a need to find a balance between the needs of planning and the need to ensure an adequate supply of land at all times. There is an opportunity to review the method of measuring development charges. The line between public and private sector involvement in employment land development must be clear. 32 MALONE GIVEN PARSONS LTD. 4 - 59 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Business Retention, Outreach & Development In terms of business retention, outreach and development, feedback and our general observations revealed: Municipalities are rolling out a business visitation program but there appears to be a lack of commitment by some to fulfill their responsibilities with regard to the program. In the rural Townships, a lack of resources makes it difficult for staff to engage fully in retention activities. There is an unstructured, unclear approach to retention in relation to companies with a region-wide scope. There is a lack of general business intelligence; there is no regular assessment of needs and issues. The current process is reactionary rather that proactive. In terms of recent investment losses throughout the region, it would appear that there was a lack of coordination, that assumptions were made about what businesses were planning to do rather than basing actions on fact, that Key Framework Responses Required : There is a need for a more organized program of outreach, with specific mandates, processes and outcomes. A professional approach to corporate relationship management needs to be instituted. A differentiation is required between local retention activities and a regionally orientated strategic corporate relationship program. Better regional coordination. Talent Through the consultation process it emerged that: Recognition exists throughout the region of the importance of implementing initiatives to attract and retain talented professionals. There is acknowledgement of the central role that the second level institutions play in supporting existing and new businesses. Improving the downtowns, transit and overall livability of the region is considered essential for talent attraction and retention. Key Framework Responses Required : A talent attraction and retention strategy is currently being developed within the region. This strategy should link to an overarching regional economic development strategy. MALONE GIVEN PARSONS LTD. 33 4 - 60 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Performance Measures An absence of performance indicators across the stakeholder organizations has led to: Assumptions and a lack of appreciation for the value of work done by others, resulting in trust and confidence issues. Overlaps and gaps not being measured or addressed. Key Framework Responses Required : A periodic review and evaluation of all organizations would ensure optimal value for money. Lack of Key Performance Indicators (KPIs) for all stakeholders within the region involved in economic development creates uncertainty about value for money and is necessary for the management and implementation of a strategy. Performance indicators should be relevant to the organization should be measured in terms of outputs not inputs. A common set of KPIs for all organizations (where practical) would streamline the process and clearly and easily show where there are inefficiencies. 34 MALONE GIVEN PARSONS LTD. 4 - 61 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 3.3Gaps & Redundancies General Observations & Analysis There is an evident difference in service delivery within the three Cities and an even larger difference between the range of service delivery provided by the Cities to that provided by the Townships, highlighting a lack of consistency across the region, varying degrees of service delivery from one jurisdiction to the next, and limited resources in some areas. The diverse nature of the various Cities and Townships in terms of scale, attributes, and economic development focus means that there is not a requirement for all services to be provided to the same degree across the region, however a lack of consistency and clarity surrounding functions, roles and responsibilities makes it more cumbersome for those accessing services from a number of the Cities and or Townships. There is no one organization delivering, enabling or contributing to all economic development functions, either at the local or regional level. Our consultation revealed that there is a need and support for a regionally focused organization to provide a cross section of economic development functions. We have identified 21 organizations that are providing one or more region-wide economic development functions and that 12 of the 14 functions are being delivered to a degree (the service may be narrow in focus) with a regional focus. Employment land development and economic policy development are the exceptions, with no organization tasked with primary regional responsibility for either. There are overlaps in terms of the number of organizations providing an element of the same function at a regional level; however that is not to say that the exact service is being duplicated. In terms of service delivery provided by the cities and townships, the most notable gap is limited economic development resources at the Township of North Dumfries and the Township of Wellesley, who have no specific economic development budget or economic development staffing resources. The planner at the Township of Wellesley currently accesses supports relating to economic development from planning staff at the Region of Waterloo and engage in economic development networking activities. The Township of North Dumfries does not have the resources to engage in economic development activities. There is a requirement to address this resourcing gap. MALONE GIVEN PARSONS LTD. 35 4 - 62 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Business Attraction/Development, Expansion and Retention Business attraction and retention is the function with the largest number of stakeholder organizations involved across the 14 identified functions. Three organizations have been identified as having a primary regional role in business attraction and retention as part of their overall mandate within their defined sectors. However there is no organization mandated to oversee business attraction and retention across the region and across a broad range of sectors. A more assertive and effective approach to corporate relationship management is required. This economic development system. It will also help to ensure that business intelligence on potential needs, expectations, services, and growth facilitation is improved. Labour Market Development The labour market development function is delivered by a cross section of organizations including; all of the identified labour force development organizations, the post-secondary institutions, Communitech, and the Manufacturing Innovation Network. Other organizations play an enabling role in labour market development. There does not appear to be any gaps in terms of the delivery of the labour market development function. Waterloo Region adopts a proactive approach to labour market development through its training, research, initiatives and supports. Talent attraction and retention is a significant component in providing for a successful and diverse economy. A talent and labour market development strategy should therefore form part of a wider regional economic development strategy. Foreign Direct Investment Foreign direct investment is the primary responsibility of C Triangle (CTT). The Department of International Affairs and Foreign Trade who have offices in Waterloo Region also play a significant role in foreign direct investment and have close relations with CTT and their work. In terms of gaps and foreign direct investment, branding of the region as C Technology Triangle raises issues for a number of the stakeholder organizations. There is a need to refocus the branding of the region to broaden the spectrum of strengths and potential investment opportunities within the region. There is also a need to ensure that a cross-section of industries is being promoted abroad as there is a perception that the technology sector gets the majority of attention. 36 MALONE GIVEN PARSONS LTD. 4 - 63 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Sector/Cluster Development Waterloo Region is synonymous with technology due to a significant effort by a broad range of organizations to support and promote the industry. Cluster development has proven to be hugely successful, particularly in terms of the technology sector. The networks that are formed through clustering activities ground the companies to the region and facilitate the growth of the industry. The work of Communitech in supporting the technology sector has had hugely significant implications for the region. CTT and the University of Waterloo along with others have also contributed significantly to the growth of the industry. The City of Kitchener has recognized the significance of development of new economic clusters and focuses on the promotion of arts and culture, clean technology, digital media, education and knowledge creation and life science clusters. OMAFRA support and promote the growth of the agriculture and food industries across Southern Ontario. The Manufacturing Innovation Network supports the manufacturing industry through an online networking service that is national in scope. Cluster development initiatives are an important new direction in economic policy in supporting industries to grow in strength andsize. Research indicates that industriesparticipating in a strong cluster register higher employment growth as well as higher growth of wages, number of establishments, andpatenting. Industry and cluster level growth also increases with the strength of related clusters in the region and with the strength of similar clusters in adjacent regions. Findings also suggest that new industries emerge where there is a strong cluster environment. There is therefore merit in expanding the regional cluster development approach and to incorporate the strategy into policy and an effective economic development program. Employment Land & Infrastructure Employment land development is currently being facilitated in varying degrees by the Municipalities. The Cities in particular are the primary suppliers of industrial and business park lands. They have responsibility for the designation and zoning of specific lands to accommodate forecasted employment growthand the provision of local infrastructure (water, sewers, and local roads) directly required to provide for the development of employment lands. MALONE GIVEN PARSONS LTD. 37 4 - 64 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS While the Townships assist in bringing employment lands on-stream, they rely predominantly on the private sector to provide land for employment growth, which has been a beneficial strategy, particularly in the case of the south Elmira Industrial Area, where the private sector has over the past several years been very successful in bringing employment land on to the market. Under the current framework the Region of Waterloo does not have a mandate to be directly involved in employment land development. The Region does however play an enabling role through the provision of major infrastructure (water capacity, treatment and mains, wastewater treatment capacity, and regional roads) directly required to provide for the development of employment lands;by designating employment lands in the Regional Official Plan; development approvals; and lobbying of the Provincial and Federal governments to provide funding for infrastructure. In terms of gaps, there is no long term strategic regional focus on employment land development that is consistent with a regional economic development strategy. Without a region wide mandated organization, investors seeking to locate within the region may need to research and negotiate with a number of the municipalities/townships rather than dealing with one organization who can advise on all prospective site locations. There is also inter-municipal competition in terms of securing investors and employers to employment lands. While some level of competition can be good, there needs to be a strong regional perspective advanced for marketing and attracting potential employers. Marketing Under the current framework structure, marketing is being delivered at some level by many of the organizations. However the scope of the marketing tends to be locally orientated, specific to the organization, on a sectoral basis or limited in nature. CTT markets the region under its foreign direct investment mandate; however this focusses on a limited number of industries. Communitech plays an important role in marketing the region as a technology cluster; and the Universities and College play their part in marketing the region as an education center. However in terms of economic development, there is no overarching marketing strategy and no organization with a broad regional marketing approach. Marketing of the region was one of the primary topics of discussion throughout our consultation process and in particular the need for an up-to-date, region-wide, accurate and modern approach to marketing the area. There is an evident need for a strategic regional marketing strategy. 38 MALONE GIVEN PARSONS LTD. 4 - 65 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Tourism, Arts & Culture The tourism, arts and culture sectors are well serviced throughout the region. The sectors are tied in varying degrees to economic development in the various Cities and Townships. On a regional scale, tourism is promoted by the Waterloo Region Tourism Marketing Corporation who maintains the Explore Waterloo Region website and islinked to the cities and township websites. The City of Kitchener has a particular focus on linking tourism, arts and cultural to economic development and has invested significantly in adding value to these sectors. The City of Kitchener promote arts and culture as a competitive cluster sector and strive to become the arts and culture hub of the region. The Cambridge Chamber of Commerce in partnership with the City of Cambridge operatesCambridge Tourism. It is the mission of the Chamber to develop tourism initiatives andtobuild partnershipsthat pool ideas and resources to promote Cambridge as a viable travel destination. The Township of Woolwich are actively involved in tourism promotion and operate a visitor information centre to compliment two other visitor information centres operating within the Woolwich area. The Creative Enterprise Initiative aim to provide an arts portal for up to date information relating to; arts activities, events and initiatives throughout the region. Data Collection & Research While some of the local Municipalities collect economic development data at the local level, there is a gap in available economic development relevant data at the region wide scale. The Waterloo Region Collaborative Economic Research Group (WRCERG) was formed in 2011 to address a gap in available economic research and data. The group is working towards creating its own website and members pay a fee to purchase data. While this is a positive step towards addressing a gap, the data is not freely accessible by all. The group will become increasingly involved in producing reports based on the data, which will be freely available. This still leaves a gap in freely accessible regional economic development data. In terms of information relating to availability of employment lands, some Municipalities keep a register, however the information is not maintained on an on-going basis. Therefore there is no available up-to-date data on regional employment land availability. A lack of available up-to-date relevant economic development data for the region was highlighted as one of the most significant gaps that we identified through our consultations with the stakeholders. MALONE GIVEN PARSONS LTD. 39 4 - 66 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS From our discussions, stakeholders revealed that a central data repository with accessible, up-to-date, accurate, region wide data would lead to huge efficiencies. There is also a need for general business intelligence data gathering. In terms of region-wide economic development research, there appears to be a gap in on-going research relating to economic development. In changing economic circumstances, the economic stakeholders of the region have recognised the need for intelligence on where the region sits in terms of its competition, where markets are evolving, where there are new opportunities, and where the region should be focusing its efforts. There is value in measuring and analysing performance, and the impacts, effects and opportunities of initiatives, programs, and funding. Efficiencies can be made and opportunities maximised. There is a requirement for on-going research on economic development trends and analysis of how existing and potential programs, investments, initiatives and models have, and can, impact the economic viability of the region. This information should be shared across all levels and sectors and should feed into policy development, infrastructure plans and strategies for improving and positioning the region at its best. The WRCERG may have a role in fulfilling the above requirements. Economic Policy Development Economic development policy is developed at the local and regional level through the Municipalities and the Region of Waterloo. However there is no Municipality or agency that is charged with the responsibility of creating and implementing a region wide economic development strategy. For external users accessing economic development policy and land use mapping in particular, there is inconsistency in terms of terminology and colour coding. Consideration should be given to streamlining land use mapping across the region for simplification purposes for the general public. Should a regional economic development strategy be developed, there needs to be an institutional response which supports the delivery and preservation of the strategy. 40 MALONE GIVEN PARSONS LTD. 4 - 67 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Quality of Life Most organizations in some way contribute to quality of life improvement activities locally and throughout the region. Quality of life, a sense of place and a positive living environment are increasingly considered to be significant factors in supporting a diverse, vibrant and successful economy, particularly in terms of attracting and maintaining talent which in turn leads to business attraction and retention. Waterloo Region is mindful and proactive in providing measures to improving the quality of life of those living and working in the region. The quality of life agenda needs to become an intrinsic element of an overall regional economic development strategy. Community Development Many of the stakeholder groups contribute to community development through their work, through community strategic planning, training, advisory services, arts and culture initiatives and events, information supports, funding and loans. There were no significant gaps relating to community development identified throughout the study. Service Delivery Gaps Summary: There is no one organization providing all economic development functions at the region level. There is a demand for a regionally focused organization to provide a cross section of economic development functions. There are limited resources within the rural Townships; there is a need to find a measure to address this discrepancy. There is need for delivery of regionally focused business attraction, expansion and retention activities that are broad in focus in terms of the spectrum of industries. Data production and the lack of sharing and accessibility of data need to be addressed. There is a necessity to develop a regional marketing strategy as part of the broader regional economic development strategy, and for an organization to take on the responsibility to market the region in terms of broad economic development objectives. A long term, regionally focused employment land strategy is required to support a strategic regional economic development strategy and to ensure that regionally significant parcels of land are secured to maximize the growth potential of the region. Townships (particularly the Township of North Dumfries and the Township of Wellesley) need support in terms of employment land development. MALONE GIVEN PARSONS LTD. 41 4 - 68 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The branding of the region requires a refocus. There is a need to ensure that a broad profile of investment opportunities from a broad spectrum of sectors is presented in terms of foreign direct investment. There is a need to prepare a regional economic development strategy. There is a need to provide an institutional framework to support the development and delivery of the regional economic development strategy. The cluster development approach needs to be expanded further as an economic development policy direction. A talent and labour market development strategy should form part of a wider regional economic development strategy. Tourism, arts and culture should be a significant feature in a broad strategic regional economic development strategy. There is a need to develop a comprehensive business intelligence strategy with an expansion and retention, policy development and data gathering focus. There is a requirement for on-going research on economic development trends and analysis of how existing and potential programs, investments, initiatives and models have and can impact the economic viability of the region. Accurate and timely land use mapping and data across the region needs to be streamlined and made accessible. 42 MALONE GIVEN PARSONS LTD. 4 - 69 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table 3.3 Gaps and Redundancies MALONE GIVEN PARSONS LTD. 43 4 - 70 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 3.4SWOT Analysis of Current Waterloo Region Economic Development Framework The following SWOT analysis captured in Table 3.4 is an outline summary of the strengths, weaknesses, opportunities and threats of the current economic development framework and processes in Waterloo Region. The table has been populated from analysis of findings and observations from a combination of a review of existing research and reports, the stakeholder consultation process, and analysis of the gaps, overlaps and issues. 44 MALONE GIVEN PARSONS LTD. 4 - 71 4 - 72 4 - 73 4 - 74 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS To sum up the findings of the consultation exercise, analysis of the gaps and redundancies and the SWOT, and taking the central study questions into account, section three highlights that despite many strengths, there are a number of failings in the current economic development framework indicating that the current system is not fully meeting the needs of the regional economy. The most significant issues/gaps that emerged include: The absence of aregional approach to economic development or a comprehensive regional economic strategy; A gap in available data and a lack of sharing of data; A poor and unfocused marketing approach; A lack of resources, particularly in the rural municipalities; An absence of trust amongst stakeholders; and, An unclear understanding of stakeholder involvement in economic development. The section also provides insight into answering the question of whether or not the Region of Waterloo should play a more significant role in economic development, with most stakeholders agreeing that the Region should become more involved in economic development and that there is a need for a regional approach to economic development. Economic development is a high priority throughout the region, and there is willingness among the stakeholders to engage in and facilitate a change to the current economic development framework for the betterment of the region as a whole. 48 MALONE GIVEN PARSONS LTD. 4 - 75 4.0 COMPARATIVE ANALYSIS: COMMUNITIES AND BEST PRACTICES The promotion, development and expansion of regional clusters is the key to economic success. Regional business clusters require engagement at regional level, as shift towardsmulti-level governance occurs. Single tier Cities appear to favour external economic development organizations, while two tier regional/local municipalities favour internal economic development organizations. 4.1Context for Comparative Analysis This section reviews current trends in: the organization of local and regional economic development services; the evaluation of economic network effectiveness; the benchmarking of what makes local and regional economic development organizations successful; and, the metrics required to measure and track the success of the programs in achieving desired municipal outcomes. The SWOT analysis discussed in section 3 was organized around the following themes: Strategy; Organization and Governance; Coordination; Economic Development Delivery; and, Resources. The same five themes are used to organize the comparison of jurisdictions and the subsequent discussion of best practices. 4 - 76 MALONE GIVEN PARSONS LTD. 49 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The comparative analysis with identified peer jurisdictions looks at three different groups of organizations: Multi-tier economic development organizations in strong technology sector communities, such as: the Greater Halifax Economic Development Corporation Halifax Nova Scotia; Raleigh/Durham North Carolina Technology Triangle; and, Charlotte USA, Charlotte North Carolina which were identified in the RFP, and subsequently expanded to include other examples such as Portland Oregon (see Table 4.3); Existing multi-tier regional municipalities in Southern Ontario (see Table 4.4); and, Single-tier municipalities with economic development and/or real estate development subsidiaries (see Table 4.5). 4.2Regional Economic Development Waterloo Region has achieved considerable economic development success over the past several decades. This success has come at a time when the traditional factors responsible for regional growth and local business development have transitioned from those largely focussed on local plant development for domestic markets, to those driven by global market places and global supply chains. This regional success has continued while the economic landscape elsewhere in South Central Ontario adapts to the impacts of the global recession, four years of declining consumer spending in the United States, and the sustained parity between the Canadian and United States dollars. These shifts have also challenged much of the prevailing thinking on local and regional economic development practices. Recent regional economic development literature focuses on the regionalization of economic activity and corresponding changes in the function and structure of local and regional economic development organizations, economic development metrics, and economic development coordination, as key best practices. Michael Porter, in a set of publications (1998, 2003), reviewed the clustering of industry in the United States and noted that business success and regionalization correlates more strongly, than does business success with national location. He extended this finding to the ways in which regional clusters, rather than nations, should be the focus of economic development policy and programs. This is a significant evolution of his thinking previously discussed in his 1990 publication 50 MALONE GIVEN PARSONS LTD. 4 - 77 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS His views on regional business clustering have influenced both academic discussion of the regionalization of economic development policy and the training and practice of economic development around the world. Table 4.1 is a summary of how the practice of economic development has evolved in response to Porter and others. Table 4.1 Economic Development Then and Now Economic Development ThenEconomic DevelopmentNow Responsibilities Collaborative process involving, multiple policies and incentives.levels of government, focussed on research institutionsand companies. Objectives Business attraction and retentionAttract educated people, high quality jobs, add value, compete globally Basis for competition Offer lowest costs for standard inputs of Offer a skilled labour force, quality of life, production (i.e. land, taxes, labour)R&D technology, and global connections Location of competition Local & RegionalRegional, National, Global Clusters and Networks Basis for competition Competitive advantage-low land and Skilled labour, quality of life, cultural operating costs, low wage locationamenities, R&D technology, openness to change Business Model Single entity, taxpayer fundedClusters, strategic alliances, networks and global mandates, shared resources Actions Tax incentives, marketingSkills development, innovation, entrepreneurship, partnerships, supportive business environment Performance Outputs-Jobs CreatedOutcomes-Quality Places, Rising wage rates and educational achievement . Note: Robert J. Stimson, Brian H. Roberts, and Roger R. Stough, 2007. . Tom Zizy, in an the Regional Coordination of Economic Development in the Toronto Region extends the Porter analysis to Southern Ontario, and identified 4 drivers of the growth in the number of regional economic coordination institutions in Southern Ontario: These four drivers push shifts in: Economic development practices, from business attraction to business enhancement. It is no longer just attracting industry, but putting in place the enabling tools, networks, and human capital infrastructure, for self-defining regional clusters that cross municipal boundaries; MALONE GIVEN PARSONS LTD. 51 4 - 78 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Business/government relations, from controlling location to facilitating engagement with business. Regional business clusters require engagement at a regional level as part of this evolving paradigm, which requires increased reliance on multi-level governance; Focus, from regional development to business development. This is a shift away from addressing regional disparities, to addressing coordination and alignment of local, regional or national government institutions with business requirements; and, Outcomes, away from economic only, towards sustainable and integrated, economic, social and environmental outcomes. A recent study by Stephen Thompson (2011) analyzed internal and external delivery models for economic development. His research focused on the period from 1999 to 2009 and was based on Ontario municipalities with populations over 10,000. From 1999 to 2009 the number of municipalities with internal economic development departments increased substantially, while the number of municipalities with external economic development departments, e.g. an economic development corporation wholly owned by the municipality, decreased slightly from nine to eight. This work was expanded for this study by this author to include two-tier region municipalities and to look only at South Central Ontario. The following table identifies which regional or local municipalities have internal or external economic development organizations. 52 MALONE GIVEN PARSONS LTD. 4 - 79 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table 4.2 Selected Southern Ontario Economic Development Deliver Membership in a Single TierInternalExternalLocalMarketing Partnership Agency LondonXNA HamiltonXNA WindsorXNA OttawaXNA HalifaxXNAGHDC 1 StratfordX(in NASOMA progress) Membership in a Two TierRegional/DistrictExternalLocalMarketing Partnership Agency York RegionX8 Local /8 InternalGTMA Peel RegionNANA3 Local/3 InternalGTMA Halton RegionX4 Local/3 InternalGTMA XBurlington Durham RegionXXGTMA 2 NiagaraRegionX(in Progress)X12 Local XFort Erie Muskoka DistrictNAX-only 6 Local/3 Internal tourism Stratford is in the process of transitioning from an internal mo. 1 Niagara Region is in final stages of transitioning from an external model. 2 Regional and Local Best Practices A report entitled TAIMERICA Management Company in 2009 for the North East Indiana selected based on their reputations within the development industry, the national awards they had received, and their past growth above the national average for similar sized communities. This data was supplemented with a survey of best practices for the same organizations. The report outlines two best practice profiles for both regional and local economic development organizations. Of relevance to this study are their observations on the relative roles of local and regional organizations in investment attraction, lead management and employment lands. MALONE GIVEN PARSONS LTD. 53 4 - 80 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Successful regional economic development organizations typically provide the following core functions: Economic development strategy preparation in conjunction with member municipalities; Marketing and regional promotion and subsequent prospect handling; Regional research including data collection, analysis and information dissemination; Information sharing and technical assistance to local economic development organizations in the region; Maintain an inventory of available buildings and sites within the region using the latest technology; and, Support, but do not lead, business retention and expansion efforts of local economic development organizations. Successful local economic development organizations typically provide the following core functions: Economic development strategy for local municipality; Marketing and promotion of the community, including handling prospect visits; Lead business retention and expansion; Develop their own portfolio of sites and buildings to support marketing; and, Often handle workforce development and training, and small business entrepreneurship development. In their conclusion they identify 12 traits that distinguish the best economic development organizations, from their counterpar The analysis indicates that they: 1.Operate with a clear vision and strategy of how their organization will work toward the desired vision for the future of their community, one that is widely held by local leadership; 2.Have written strategic plans that guide their overall activities. These plans keep leaders focused on those actions that lead to long-term improvements; 3.Have a focused mission. For local economic development organizations, the mission includes real estate development, as well as marketing and business retention; 54 MALONE GIVEN PARSONS LTD. 4 - 81 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 4.Receive the majority of their funding from the private sector, giving leaders the flexibility of focusing on long-term goals. (In the United States, large utility companies have found it prudent for their own business success to take on core funding and leadership roles in local, regional, and state economic development partnerships, for example Duke Energy in Charlotte, North Carolina. In Ontario, electric power utilities have historically been owned by the Province, and not directly engaged in local economic development. This situation is now changing and may result in greater direct participation by power utilities in Ontario. Gas utilities are regulated private corporations, and they have become engaged in regional and local economic development sponsorship); 5.Have state financial support and statutory authority that limits the level of time spent on fundraising by senior leaders; 6.Measure performance based on stakeholder and customer feedback rather controlled by economic development organization executives; 7.For regional economic development organizations, they have effective lead dissemination systems that are transparent, fair, and developed with input from the local economic development organizations. Effectiveness comes from the recognitionof economic development organizations that they have to customize the process for their members rather than copy successful processes in other regions; 8.Rely less on advertising and direct mail than their traditional counterparts; 9.Use widely accepted customer relationship management techniques, software, and internal business processes; 10.Have a corporate culture that is focused on external conditions (customers and markets trends), rather than internal processes; 11.Have a commitment to the extended use of training and innovation tools; and, 12.Are present in community environments that support the need to acquire and maintain top economic development talent, which is often less true for traditional economic development organizations. MALONE GIVEN PARSONS LTD. 55 4 - 82 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Network Effectiveness In a 2005 paper, g Regional the author Jan Nelles identified the emerging growth of regional economic development network. Of particular interest in this report is the discussion of the role of existing institutions, such as CTT and Communitech, in fostering the growth of regional networks and the creation of institutional thickness. The author measures networkinstitutional thickness through a four level, civic capital creation lense: Level One: the number of institutions in the network; Level Two: interaction among network members; Level Three: the emergence of informal coalitions and hierarchy among network members; and, Level Four: shared identity, goals and values. The author notes that the creation of CTT in 1987 represented a move from level one to two, and the subsequent creation of Communitech and the Prosperity Council movement from level two to level three, as other regional leaders within the network emerged. The paper notes the historic differences, tensions, and competition among local Municipalities. The growth of Waterloo Region is viewed by the author as a sign that these tensions and competitive instincts have mellowedhe author concludes that: the establishment of CTT, Communitech and the Prosperity Council, are examples of the positive growth of civic capital in Waterloo Region; and Waterlo economic network has yet to reach Level four (shared identity, goals and values). A 2012 report prepared by Dr. Tara Vinodrai and colleagues at the University of Waterloo looked at the role of regional networks in stimulating sector economic development. The study, en Networks in the Local Food, Green Energy & Creative Sectors in Waterloo on models of governance and collaboration, and examined how regional approaches facilitate economic development. Two models emerged: the first is based on a dominant lead agency, and the second based on an organic approach, with several formal and informal collaborative networks emerging. 56 MALONE GIVEN PARSONS LTD. 4 - 83 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS In summarizing their findings, the researchers noted that: the effectiveness of both models is mixed; that barriers exist due to the lack of strong leadership from a structured regional agency, or from within the community; and, the lack of connectivity among both the sector participants, and with the more structured economic development community. This research is consistent with and supportive of the findings of our interview process, and provides support for the need to address regional economic development leadership and collaboration improvements if Waterloo Region is to sustain its current economic success. 4.3Comparator Community Summary The economic development characteristics of several sets of communities have been compared against the broad best practice groupings: Strategy; Organization and Governance; Coordination; Economic Development Delivery; and Resources. Some allowances were made for availability of information. Comparator Communities 1 The first set of tables evaluates: Charlotte, North Carolina; Raleigh-Durham, North Carolina; Portland, Oregon; and Halifax, Nova Scotia. MALONE GIVEN PARSONS LTD. 57 4 - 84 4 - 85 4 - 86 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Key Findings US examples are often driven by state defined economic regions, with funding tied to participation; Member city and counties maintain their own economic development departments and deal with local retention and employment lands; Private sector support is essential and typically large private utilities (electricity, gas, coal) play a major role in board leadership, funding and business recruitment; Most of these are defined as marketing partnerships and would be viewed as equivalent to the GTMA or possibly the CTT; Greater Halifax Partnership is the result of amalgamation and is essentially the Economic Development Department for Halifax, which merged its own department with the Partnership in 2006; The multi-county marketing partnership trend is evident in many US city regions. Both Charlotte and Raleigh Durham have, over time, added adjacent counties in response to growth of the regional economy. Both the Charlotte and Portland regional partnerships have grown beyond state boundaries; and, In Ontario, regional marketing partnerships are becoming more evident. The GTMA has been in existence since 1998. The Southwestern Ontario Marketing Alliance, and the Eastern Ontario Development Initiative are active in their respective regions. Both Peterborough and Windsor have established economic development corporations that include the adjoining counties. Comparator Communities 2 The second set of communities includes Southern Ontario, two-tier communities similar to the situation in Waterloo Region. 60 MALONE GIVEN PARSONS LTD. 4 - 87 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY MALONE GIVEN PARSONS LTD. 61 4 - 88 4 - 89 4 - 90 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Key Findings All have regional economic organizations/departments; All have recently developed aneconomic development strategy; All have amarketing strategy; All have responsibility for economic data collection and analysis; Tourism may be included in the regional mandate; May assist in business retention; Employment land information is made available, however ownership remains with the private sector or local municipalities; and, Most regions have local municipalities with their own economic development departments or staffing. Comparator: External Development Corporations We have also reviewed from different Ontario examples of external organizations that are responsible for economic development on managing public real-estate transactions. These are: Build Toronto - City of Toronto; Toronto Land Corporation Toronto District School Board; London Economic Development Corporation City of London; and Windsor Essex Development Corporation City of Windsor. 64 MALONE GIVEN PARSONS LTD. 4 - 91 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY MALONE GIVEN PARSONS LTD. 65 4 - 92 4 - 93 4 - 94 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Key Findings The two Toronto examples are useful comparators. The other two examples are single-tier Municipalities with external economic development corporations; Both Toronto models have strong private sector real estate leadership on the board of directors and in executive positions within the corporation; They are run as real estate development corporations and have governance structures similar to private sector organizations; Both Toronto models deal with land that is surplus to the needs of the sole shareholder, and have shareholder instructions and protocols governing their relationship with the single shareholder, and the day-to-day operation of the corporation. Both have objectives to ensure that revenues from sales are maximized, and both engage in value added investment in properties to increase return to their single shareholders. Operating costs are covered by revenues from sales, or other forms of disposition. TLC is required to provide TDSB with annual revenue, as provided for in the TDSB approved multiyear business plan. Both have been successful in their first 3 years. The above analysis and review of best practices indicate that a regional organization is required to deliver a coordinated regional program and to re- establish a working relationship among all the stakeholders. In summary, four key trends that define the nature of economic development organizational arrangements include: Business success is more commonly associated with a regional cluster approach; Regional business clusters require engagement at a wider regional level; Single-tier municipalities favour external economic development organizations; and Two-tier regional/local municipalities favour a combination of internal and external economic development organizations. 68 MALONE GIVEN PARSONS LTD. 4 - 95 4 - 96 4 - 97 4 - 98 4 - 99 5.0 FRAMEWORK OPTIONS Five options for delivering economic development services have been defined that represent a continuum of change and intervention. While all are considered potentially feasible, three stand out as the most practical when evaluated in terms of opportunity and risk, and one is recommended. 5.1Economic Development Requirements In responding to the economic development context in Waterloo Region, and considering the current issues, the opportunities and the learnings from other jurisdictions, five options have been identified. It is intended that these options have the following characteristics: All are potentially implementable in Waterloo Region; All respond to the opportunities to a greater or lesser extent; All are capable of delivering the desired outcomes; and, All address the basic requirements for economic development in Waterloo Region. For an option to be implementable, it requires the achievement of ashared vision for the goals, processes and responsibilities among all public stakeholders within formal agreement could be reached among public stakeholders, that is supported by business and by the public at large. All of the options need to respond to the opportunities to market Waterloo Region and further enhance the economic prosperity of Waterloo Region. Although the regional economy is facing challenges, it is fundamentally strong and there are new opportunities to exploit, whether that be foreign direct investment, capturing new entrants that might otherwise locate in the GTA, or ensuring that existing successful employers continue to grow within Waterloo Region. MALONE GIVEN PARSONS LTD. 73 4 - 100 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Each option must be capable of delivering the outcomes that are sought. These include: A coherent economic development strategy; A strong brand and marketing program for the region that resonates and differentiates; Successful attraction of new companies across all key target clusters; Facilitation of the growth and retention of existing companies; Expansion of the tax base; Achievement of the broad community vision; More high paying jobs; and, A sustainable and growing regional economy. Each option must be able to address the issues that have been identified. These are the strategic and operational issues that influence the focus and effectiveness of the economic development process. All options must be capable of meeting the fundamental requirements of economic development. These include: Planning and governance; Program delivery; Land and infrastructure; and, Resources, staffing and management. Planning and governance requirements include the provision of: A regional economic development perspective; Regional Economic Development Strategy; Clarity of objectives and responsibilities amongst economic development organizations; Coordination and alignment of objectives and activities. Risk assessment; Board of directors; and/or, Political oversight. Program delivery requirements include: Effective marketing; Focus on sectors; Multiple focus on regional, national & FDI; 74 MALONE GIVEN PARSONS LTD. 4 - 101 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS An aggressive, proactive program for business retention and expansion; Maximize role of private sector; Accurate and timely business intelligence; s to other levels of government; Land and infrastructure requirements encompass: The creation and delivery of an employment land strategy; Clear objectives for creating, maintaining or monitoring the quantity, quality and location of available shovel ready land; and, Coordination of infrastructure investment. Resources, staffing and management include: Effective management; Recruitment of staff; Sustainable budget support; Performance standards and indicators; and, A proactive culture. Figure 5.1 Development Framework: Foundations, Strategies and Ou 4 - 102 MALONE GIVEN PARSONS LTD.75 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 5.2Organizational Options In the course of preparing this report the consulting team considered a wide range of possible options for the requested regional economic development framework. Our analysis of the current economic development and local governance institutional arrangements, our extensive consultation with the broader economic development network, and the identification of local norms and values, produced key benchmarks to guide the analysis. This provided the boundaries within which to establish the best available options. The following Five Options all offer potentially viable outcomes. Each has its strengths and weaknesses and each will appeal to some stakeholders more than others. They are snapshots of different combinations of policy, governance, programming, marketing, advocacy, and employment land development initiatives that address the economic development needs of Waterloo Region. The options have been selected to illustrate the mix of different approaches available The essential difference is not so much the ends, but in the means of implementing a strategy. In particular, each option reflects a different approach to engaging municipal stakeholders. A distinction is made between the governance and organizational need to create and deliver a coherent strategy and the approach to delivering appropriate amounts of shovel ready land. The former focuses on strategic planning, marketing, business community relations, advocacy, analysis, and ensuring community consensus around ends and means. The latter potentially focuses on direct capital investment, entering into contracts and joint ventures, financing agreements, acquisition, servicing, marketing and disposition of real property. None of the Five Options require a change to the role of the Region of Waterloo as defined in the Municipal Act. The Region of Waterloo is free to assert a more direct role in the planning, coordination, and delivery of economic development. However, as discussed in Section 6.0, the Municipal Act would need to be modified to enable the Region of Waterloo to have a direct role in the acquisition, development, and disposal of sites for industrial, commercial and 76 MALONE GIVEN PARSONS LTD. 4 - 103 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Option 1: Status Quo The Status Quo Option maintains business as usual with the responsibilities as they are now. This is a continuation of the existing collaborative model where the Region of Waterloo has a supportive but generally passive role and the delivery of economic development is primarily the responsibility of the Municipalities, with the CTT providing marketing for foreign direct investment. Change and possibly improvements, will occur in an ad hoc fashion, usually in response to a crisis situation or to politically sensitive issues as they arise. Option 2: Alignment and Coordination The theme of Option 2 is to improve the alignment of economic development objectives amongst stakeholders and to improve the coordination of program delivery by the various stakeholders. This would maintain the existing governance structure, but would engage the Regional Municipality of Waterloo with an explicitly regional perspective. The defining features of Option 2 are: The Region of Waterloo establishes an Economic Development Policy Office under the Chief Administrative Officer (preferred) or under the Planning ; The option of Enhancing Strategic Alignment and Coordination of the economic development program delivery is a deliberate move away from the Status Quo and yet does not entail major organizational changes; The economic development policy office would advocate and take the lead for key strategic projects including: Waterloo Region Economic Development Strategy; regional rebranding; implement planning and marketing of strategic employment lands; rural services improvements and network collaboration and coordination enhancements; strategic business retention and attraction coordination; and enhanced regional data collection, analysis and distribution; The CTT and other local organizations would continue to focus on their existing mandates; The local Municipalities would continue to be responsible for business retention, liaison with local business, and would retain their existing roles with regard to ensuring available land supply; and, No amendment to the Municipal Act would be required. 4 - 104 MALONE GIVEN PARSONS LTD. 77 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Option 3: Development Corporation (8 Shareholders) Option 3 moves away from the existing organisational responsibilities and moves the primary responsibilities for implementing economic development to a Waterloo Region Economic Development Corporation (WREDC) that is controlled by the Region of Waterloo and the 7 local Municipalities. Local Municipalities would retain a local economic development role. The defining features of Option 3 are: An Office of Economic Policy would be established by the Region of Waterloo. It would be responsible for coordinating the creation of the Waterloo Region Economic Development Strategy, in concert with the 7 local Municipalities and local shareholders; The new Waterloo Region Economic Development Corporation (WREDC) is formed under the control of the Region of Waterloo and the 7 local Municipalities, with the responsibility of implementing the Waterloo Region Economic Development Strategy; Services agreements between the Municipalities and the corporation define the role of the Corporation, its mandate, reporting relationship and resources, corporate structure, objectives, KPIs, etc.; The WREDC could replace CTT or the existing CTT could be transformed into the WREDC. The latter approach would require changes to the structure and governance of CTT; The key functions of the Waterloo Region Economic Development Corporation would include: the implementation of a Regional Economic Development Strategy;strategic marketing and rebranding of Waterloo Region;employment land marketing;business and talent attraction and development; business community relations; business retention (strategic employers, and investors only); advocacy of economic development; and regional data collection, analysis and publication; Local Municipalities would continue to have a role in local economic development but the local role would be guided by the WREDC within the context of a regional strategy. They would retain control of their current employment land holdings; The local Municipalities would continue their role in local business retention, local marketing, and land marketing, where that is an established activity. However, all matters of a regional and strategic nature would be coordinated by the WREDC. This includes regional marketing and messaging, providing information and data, advocacy, and coordination of business relationship management; The details of the interface between the local and the regional economic development activities would be refined through the Regional Economic Development Strategy; and, 78 MALONE GIVEN PARSONS LTD. 4 - 105 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The proposed model would not require changes to the Municipal Act regulations. It would have a professional board of directors appointed by the shareholders. Option 4: Regional Economic Development Corporation (full respon Option 4 is similar to Option 3 except that all economic development activity becomes the responsibility of WREDC on behalf of its municipal shareholders. In this case, the economic development activities being carried out by local municipalities would be transferred to the new organization. Other defining features are: The Waterloo Region Economic Development Corporation is formed under the control of the Region of Waterloo and the local Municipalities; The Waterloo Region Economic Development Corporation would be responsible for coordinating the creation of a the Waterloo Region Economic Development Strategy, in concert with the 7 local Municipalities and local shareholders, and be responsible for implementing the Waterloo Region Economic Development Strategy; A services agreement between the Municipalities and the Development Corporation would define the Corporation role, mandate, reporting relationship and resources, corporate structure, objects, KPIs, etc.; The Waterloo Region Economic Development Cey functions would include: implementation of a regional economic development strategy; marketing and rebranding of Waterloo Region;employment land marketing; business and talent attraction and development; business community relations; business retention;advocacy of economic development; and regional data collection, analysis and publication; All economic development functions currently carried out by the local Municipalities would be carried by the WREDC; The WREDC could replace CTT or the existing CTT could be transformed into the WREDC. The latter approach would require changes to the structure and governance of CTT; The proposed model does not require changes to the Municipal Act regulations, unless the Region of Waterloo becomes directly involved in the ownership, sale, leasing or development of employment lands; and, The budgets of local municipalities would be rebalanced to reflect the shift in economic development responsibilities. It would have a professional board of directors appointed by the shareholders. 4 - 106 MALONE GIVEN PARSONS LTD. 79 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Option 5: Consolidate Economic Development Functions and Service the Region Under this Option, all economic development functions become the responsibility of a Region of Waterloo Department of Economic Development. The Region of Waterloo would effectively take over the planning and delivery of economic development services on behalf of all Municipalities within the region. The defining features include: A new division would be formed within theRegion of Waterloo administrative structure. Services agreement between the local Municipalities and the Region of Waterloo will define the roles, mandate, resources, objectives, KPIs, etc.; Key functions of the organization would include: preparation of the Waterloo Region Economic Development Strategy; implementation of a regional economic development strategy; marketing and rebranding of Waterloo Region;employment land marketing; business and talent attraction and development; business community relations; business retention;advocacy of economic development; and regional data collection, analysis and publication; An amendment to the Municipal Act would not be required unless the ROW becomes directly involved in employment land ownership and development; An inter-municipal service agreement would be required on the role and mandate of the new economic development division that will provide local services to all 7 Municipalities; and, Municipal budgets would need to be rebalanced to reflect the shift in economic development responsibilities to the Region of Waterloo. 80 MALONE GIVEN PARSONS LTD. 4 - 107 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY 4 - 108 MALONE GIVEN PARSONS LTD. 81 4 - 109 4 - 110 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 5.3Evaluation of Options; Risk & Opportunities The following evaluation of the options uses 6 criteria to assess risk and opportunities in each of the 5 options: Ease of implementation; Ability to produce an effective regional strategy; Ability to efficiently deliver core economic development; Capability to ensure employment land goals are achieved; Ability to secure sustainable funding; and, Institutional risk. Two options, Option1: Status Quo and Option 5: Consolidation of all Economic Development Services under the Region of Waterloo, are deemed to be undesirable or impractical. The Status Quo has not been able to create or deliver a coherent regional economic development strategy, which is essential to the future growth and prosperity of the region. Option 5, the consolidation of all regional economic development activity and responsibility within regional government, is deemed impractical in the foreseeable future as local municipalities may not be willing to transfer control of all economic development responsibilities to the Region of Waterloo. In our view, the most practical options are Option 2: Alignment and Coordination, Option 3: Development Corporation, which involves participation by all municipal entities, but with some local economic development functions retained by the Municipalities, and Option 4 which has a similar governance structure to Option 3, but with a transfer and consolidation of all economic development functions currently carried out by local Municipalities. 84 MALONE GIVEN PARSONS LTD. 4 - 111 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 4 - 112 MALONE GIVEN PARSONS LTD.85 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Our preferred approach is Option 3. Our recommendation is that Waterloo Region should have the objective of consolidating most economic development functions under a single organizational umbrella that is responsible to the Region of Waterloo, and the seven local Municipalities. The advantages of this are a clear and transparent focus, accountability, and more efficient deployment of staff and financial resources. A single regional organization should be a non-profit agency that is separate from, but ultimately controlled by, the 8 Municipal partners within the region. Its mandate would be: To implement the Waterloo Region Economic Development Strategy; To market the region to foreign, national, and local audiences; To facilitate and manage relationships with existing business within the region; and, To provide advocacy for Waterloo Region to other levels of government on economic development matters. Municipalities would retain responsibility for local economic development issues within the coordinating umbrella of the WREDC. The local Municipalities would continue local business retention activities. The WREDC would be responsible for managing strategic business relationships, for marketing the region globally and locally, and would provide research and information to support regional marketing. Local community marketing would be coordinated with regional marketing to ensure consistent messaging. The Waterloo Region Economic Development Corporation would not become directly involved in the development and sale of land (more on this in Section 6.0). The Waterloo Region Economic Development Corporation would be funded by the Region of Waterloo, the local Municipalities and the private sector. It is recommended that an Office of Economic Policy be established within the ROW which would be responsible for coordinating the creation of a Waterloo Region Economic Development Strategy and a Regional Employment Land Strategy in conjunction with the area Municipalities. It would also work with the WREDC and the local Municipalities to set annual budgets. However, the office of Economic Policy would not be responsible for implementation. 86 MALONE GIVEN PARSONS LTD. 4 - 113 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS We recommend that the CTT be incorporated into the WREDC or that the CTT Waterloo Region Economic Development Corporation. The structure and governance of the new organization would need to transition from the current CTT structure and governance. In particular, the WREDC should be governed by an independent board of directors that is directly responsible to the municipal people from the private sector and institutions. Although Option 3 is recommended as the most practical and effective way to implement a regional economic development strategy, we recognize that this could evolve, over time, to Option 4. With this option, all of the local economic development functions move to the WREDC as the single implementing agency for economic development within the region. 4 - 114 MALONE GIVEN PARSONS LTD. 87 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY 88 MALONE GIVEN PARSONS LTD. 4 - 115 6.0 EMPLOYMENT LAND OPTIONS It is an essential requirement of successful and transformational economic development that there be a sufficient supply of available employment land at all times. It is recommended that a focused mix of private and public sector initiativesbe undertaken. 6.1Industrial and Business Park Lands The existing and potential future inventory of Industrial and Business Park lands is distributed across the region, but is primarily located within the three Cities and the Townships of Woolwich and Wilmot. The data base is maintained by the Region of Waterloo, but has not been updated since 2009. Table 6.1 Region of Waterloo Industrial and Business Park Vacant Land Inve 2009 Region of WaterlooCambridgeKitchenerWaterlooWoolwichNorth DumfriesWilmotWellesley Designated Designated Designated Designated Designated Designated Designated Designated Serviced Total Serviced Serviced Serviced Serviced Serviced Serviced Serviced (Acres)(Acres)(Acres)(Acres)(Acres)(Acres)(Acres)(Acres) Available for sale or use immediately by 460.86231.51132.0018.0967.560.0011.700.00 owner Available for use by 285.44152.1658.6349.268.905.1011.390.00 owners Anticipated to come on to the market in 857.22265.14194.23227.190.000.00170.660.00 the future Constrained Land440.02171.5082.6210.02168.000.007.880.00 Potentially in transition to other 50.920.0049.721.200.000.000.000.00 uses TOTAL2094.46820.31517.20305.76244.465.10201.630.00 Source: Appendix 4 4 - 116 MALONE GIVEN PARSONS LTD. 89 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure 6.1 Regional Employment Lands 4 - 117 90 MALONE GIVEN PARSONS LTD. WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS The price of vacant industrial land declines as one moves west from the GTA towards London. The prices in Waterloo/Kitchener/Cambridge are about half that of Milton, Oakville and Burlington. Given Waterloo Regions strong locational attributes and its location west of the GTA, there is a compelling proposition for employers who value access to the Waterloo Region talent pool and its proximity to the GTA. As to development charges (DC generally lower than the GTA municipalities, although higher than Hamilton, Guelph, London and Brantford. With its educational, entrepreneurial, cultural, and transit assets and lower costs, Waterloo Region will become an increasingly attractive location for new and expanding businesses relative to the western GTA municipalities. Peel and Halton employment land supply will be largely depleted within 10 years. Even if additional land is designated, it is clear that employment land prices in the western GTA will rise relative to exiting prices in Waterloo Region. This will present competitive opportunities for Waterloo Region over the longer term. Figure 6.2 Vacant Industrial Land Prices and Development Charges (per acre) Average Industrial Land Prices Development Charges Å Å r Å r r Å  r Å r r Å r Å r Å  r Å r Å r Å r Å r Å r ŏ ŏ 4 - 118 MALONE GIVEN PARSONS LTD. 91 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 6.2Ensuring Land Supply 6.2.1Need for a Risk Perspective Ensuring that there is an appropriate supply of employment land is central to the economic development of Waterloo Region. This is well understood by all stakeholders but there is uncertainty about how much land is required, where it should be provided, what parcel size, what locational attributes should developed land exhibit, and the best approach for ensuring supply. spective. At a broad urban planning level, the perspective is to ensure that the expected growth in labour force can be accommodated by long term supply of employment land. The timeframe is typically long, and a potential mismatch between supply and demand of employment land are long term, and therefore the risks are low because adjustments and corrections can be made in the long planning cycle. The perspective of economic development policy is more short and medium term. The pipeline of approvals and servicing needs to accommodate visible trends and expectations, and to ensure that the land market is not going to be constrained and drive up prices or focus on the wrong set of locational attributes. This short and medium term perspective is sensitive to the budgeting process for the infrastructure required to translate land policy into available land supply. It is here, at the short and medium term perspective, that the risks of a mismatch between supply and demand are potentially high. The risks of a mismatch are high because the inventory of vacant land that is designated, serviced, available for sale and immediate use, with an appropriate spectrum of location, size, and price, is an essential requirement for economic development. The ability of Waterloo Region to market the region to new entrants, and to retain the successful and growing companies within the region, depends on the absolute certainty that supply is continually available. 4 - 119 92 MALONE GIVEN PARSONS LTD. WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS medium term, that just means that it may take a bit longer to absorb supply than originally expected, but it helps to maintain a competitive local land market in the short term. strategy and retention strategy can be directly compromised. This can quickly and wasted economic development resources. Hence the need for a risk perspective when considering the immediate, medium and long term supply of employment land. 6.2.2Estimates of Supply and Demand for Employment Land The issue of how to define, create, monitor and manage employment land, particularly industrial and business park land within Waterloo Region, has been the subject of numerous studies and reports over the past decade. The issues that have been raised include the following: There appears to be an emerging shortage of business park land that is suitable for technology companies. This view has been challenged to some extent, Region. Technology firms seek locations where talent wants to work. This is often as much a lifestyle issue as a cost or locational one. This often means a services often in a mixed use setting. Redmond, Portland, Palo Alto, Mountain View, Route 128 are examples. There is a need to focus on the need for shovel ready land and the risk to Waterloo Region if suitable land is not available. Given the length of the planning and development cycle, it is essential that there be a continual 10 years potential supply in the approval cycle at any given time and there should be a continuous supply of vacant and available land that is equivalent to at least 3-5 years absorption. Brownfield sites can be, but are not always, within an urban fabric that is attractive to a technology cluster. Some corporations are reluctant to locate in a brownfield redevelopment if their strategy is to avoid any likelihood of environmental liabilities or if they need to ensure flexibility for long term expansion, without the need to move to another site. The broader planning issue is to create the right balance between employment growth and land demand including brownfield, redevelopment, intensification and greenfields. 4 - 120 MALONE GIVEN PARSONS LTD. 93 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 6.2.3Role of the Private and Public Sectors The present system has direct involvement by the three Cities; Kitchener, Waterloo and Cambridge, in the development of industrial and business park land. The townships have elected to minimize their direct role in the development of land. The role of the private sector has been a subject of long discussion. The participation of the private sector to-date has primarily focused on the building of structures for sale or lease most often on land purchased from the Municipalities. There are advantages to private sector involvement. It reduces the need for public capital and can provide a wider range of tenure options than would ordinarily be the case for public sector land development. The private sector may be increasingly attracted to Waterloo Region because of the lower land values and the prospect that these could rise as the most attractive sites in the western GTA are absorbed by the market. The private sector has demonstrated an appetite for the adaptive reuse of older structures within the urban boundary and for the redevelopment and intensification of brownfield sites. Over time, there is an opportunity for the private sector to take a larger role in the provision of green field employment locations. There also are many advantages of direct public sector involvement and the development of industrial and business park land. There is a well-established and successful precedent. - oriented business park land. It is easier for the public sector to create successful joint ventures or partnerships that involve multiple jurisdictions. The public sector can more readily develop larger lots and hold them for strategic disposition rather than be pressured to subdivide and sell to generate cash flow as would the private sector. and Cambridge has been considered for development for many years. rnational Airport but If the airport is to be successful in the long term, there needs to be control the employment land that is adjacent and proximate. Airport operations are vulnerable to land use conflicts and political opposition. Unless the surrounding land is controlled by the public domain, the airport will be unable to achieve its full long term potential as an employment generator. Other strategic lands may be identified through the Regional Economic Development Strategy. 4 - 121 94 MALONE GIVEN PARSONS LTD. WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 6.2.4Alternative Approaches to Providing Industrial & Business Park Lands Six approaches to ensuring a supply of industrial and business park lands were examined: Reliance on the private sector; A mix of municipal land development and private sector (maintaining the existing approach); Direct involvement by the Region of Waterloo in strategic land development; Amixed public/private approach that includes the use of a special purpose public land development corporation; A public monopoly that is jointly owned by all municipal jurisdictions for the development and disposition of employment land; and, A public monopoly that is controlled by the Regional Municipality of Waterloo. Table 6.2 summarises and compares the salient characteristics of each of the six approaches. The private sector approach has the advantage of shifting the investment and implementation burden firmly to the private sector. This has many other advantages but the obvious disadvantage is that the private sector may avoid large and complex projects like the East Side Lands. More to the point, there is no guarantee that the private sectors will land bank large sites without public support, nor is there a guarantee that they will be willing to make a deal with a large strategic employer. The current model (Option 2), which is a mix of municipally owned and privately owned business park land, has been generally successful to date. However it is asymmetrical because not all local municipalities are able or willing to participate. The third option would see the Region of Waterloo becoming more directly involved in the development of the strategic employment land. The fourth approach includes public and private involvement and would see the creation and use of a special purpose land development corporation that has a narrow mandate to deal with creating new strategic employment lands. This provides much more certainty about the availability of large or special sites and avoids future pressures for the conversion of employment land to other purposes. At the same time it will require public investment for capital and operating costs until revenues from sufficient land sales accrue. The fifth and sixth options are based on the concept of a public monopoly of employment lands. They are viewed as unnecessary and the wrong direction for Waterloo Region. 4 - 122 MALONE GIVEN PARSONS LTD. 95 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Our preferred approach is Option 4: Special Purpose Public Development Corporation with the following elements: 1.The Employment Land Strategy is created in conjunction with the Waterloo Region Economic Development Strategy. The land strategy would be coordinated by a newly created Office of Economic Policy with the Region of Waterloo and the Municipalities. 2.The existing municipal role in employment land development remains. 3.A special purpose corporation is established to develop strategic employment lands on the east side, including those adjacent to the airport and other strategic lands as determined: Professional board of directors is recruited; o The mandate to be formalized, and business plan created and a o development plan for the East Side and Airport; Other strategic lands could be included as determined through the o Regional Economic Development Strategy and the Regional Employment Land Strategy. Joint venture development agreements with private land owners if o required; Capitalized by the Region of Waterloo and the Municipalities; o Existing public land in Cambridge and Woolwich is transferred to the o special purpose Development Corporation. This could include a transfer of land, with consideration, from the Ontario Infrastructure and Lands Corporation; A detailed plan and development program is put in place; o Phased investment in servicing is committed by the shareholders; o Land is marketed directly to industries and to private developers; o The Corporation is structured so that it can be sold wholly or in part to o private / institutional investors at some future date if desired. 4.In the longer term, the major role of developing and selling employment land should transition to the private sector. 4 - 123 96 MALONE GIVEN PARSONS LTD. WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY 4 - 124 MALONE GIVEN PARSONS LTD. 97 4 - 125 4 - 126 4 - 127 4 - 128 4 - 129 7.0 CONCLUSIONS, RECOMMENDATIONS & IMPLEMENTATION 7.1Conclusions The report provides: an analysis of the current economic development framework and governance structures; a review of the issues around the current economic development functions in Waterloo Region; and an analysis of identified comparator communities and prevailing best practices relevant to the current economic and governance structures in Waterloo Region. This has led to the identification and analysis of viable options for implementing a new Waterloo Region Economic Development Strategy, and the identification and analysis of options to ensure an appropriate supply of employment land is available to new and expanding employers. The Existing Economic Development Framework and Network The existing economic framework has successfully served the Waterloo Region well for many years. However, a number of strategic weaknesses in the current framework have been identified, resulting in a system that will not meet the needs of the regional economy going forward. These identified weaknesses include: Absence of a coordinated regional approach; Gaps in data collection, analysis and info sharing; Dated/fragmented branding and marketing; Resource disparity between urban and rural; Trust issues; and, 4 - 130 MALONE GIVEN PARSONS LTD. 103 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Poor alignment of stakeholder understanding of economic development. Comparative Analysis A number of comparator communities were evaluated to identify current trends and best practices in regional and local economic development. Four key trends that define the nature of economic development organizational arrangements include: Business success is more commonly associated with a regional cluster approach; Regional business clusters require engagement at a wider regional level; Single-tier municipalities favour external economic development organizations; and Two-tier regional/local municipalities favour a combination of internal and external economic development organizations. An effective economic development process for Waterloo Region must be able to deliver the following outcomes: A coherent economic development strategy; A strong brand and marketing program for the region that resonates and differentiates; Successful attraction of new companies across all key target clusters; Facilitation of the growth and retention of existing companies; Expansion of the tax base; Achievement of the broad community vision; More high paying jobs; and, A sustainable and growing regional economy. 104 MALONE GIVEN PARSONS LTD. 4 - 131 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS 7.2Recommendations Economic Development Service Delivery and Employment Land Strategy Athree way distinction is made between the governance and organizational need to create a coherent strategy, to implement an economic development strategy, and the approach to delivering appropriate amounts of shovel ready land. The first focuses on strategic planning, the second focuses on marketing, business community relations, advocacy, analysis, and ensuring community consensus around ends and means. The third focuses on direct capital investment, entering into contracts and joint ventures, financing agreements, acquisition and disposition of real property. Recommendation :An Office of Economic Policy should be established at the Region of Waterloo with a mandate to coordinate the creation of an appropriate Regional Economic Development Strategy. This would be created in conjunction with the 7 local Municipalities. As part of this process a Regional Employment Land Strategy would be defined that meets the needs of the Regional Economic Development Strategy. Framework Recommendations : Recommendation : Waterloo Region should have the objective of consolidating most economic development functions under a single organizational umbrella. The advantages of this are a clear and transparent focus, accountability, and more efficient deployment of staff and financial resources. Recommendation : That a Waterloo Region Economic Development Corporation (WREDC) be established with a mandate to deliver a full spectrum of economic development services within Waterloo Region. Its purpose would be to implement economic strategy, but not to be involved directly in employment land development. Recommendation : That the WREDC be under the formal control of the Region and the 7 local Municipalities. Recommendation :That CTT be incorporated into the WREDC or that the CTT mandate be expanded so that CTT transitions to become the new WREDC.The structure and governance of the new organization would need to transition from the current CTT structure and governance, in orderto reflect the new responsibilities and accountability of the new organization. 4 - 132 MALONE GIVEN PARSONS LTD. 105 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Recommendation : That a professional board of directors be established with substantial representation from the private sector. Recommendation :The WREDC should be a non-profit agency that is separate from, but ultimately controlled by, the 8 Municipal partners within the region. Recommendation : That the WREDC enter into service agreements with the local Municipalities that defines the specific economic development roles and responsibilities of all parties. Recommendation :The mandate of the WREDC should be: To implement the Waterloo Region Economic Development Strategy; To be responsible for all regional marketing; foreign, national and local; To facilitate and manage relationships with existing strategic businesses within the region, and to coordinate business relationship management with the local Municipalities; To coordinate the collection, analysis, and publication of regional data and information that is relevant to the planning, marketing and monitoring of economic development; and, To manage and be responsible for advocacy with other levels of government on economic development matters. Recommendation :The organization should be funded by the Region of Waterloo, the local Municipalities and the private sector. Recommendation : Local Municipalities would retain responsibility for specific local economic development issues within the coordinating umbrella of the Waterloo Region Economic Development Corporation,as defined inthe strategy and service agreements.Local Municipalities would: Continue to be actively engaged in local business retention, with the WREDC responsible for organizations of strategic regional importance. Continue to provide local marketing outreach, but with coordinated market themes and consistent factual material provided by the WREDC. Recommendation : It is essential that the Waterloo Region Economic Development Corporation be a multi-party partnership among local and regional government, the private sector and major institutions. 106 MALONE GIVEN PARSONS LTD. 4 - 133 WATERLOO REGION EOCNOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Employment Land Recommendations : The perspective of economic development policy is more short and medium term than the typical long term perspective of the Official Plan.It is here, at the short and medium term perspective, that the risks of a mismatch between supply and demand are potentially high. The risks of a mismatch are high because the inventory of vacant land that is designated, serviced, available for sale and immediate use, with an appropriate spectrum of location, size, and price is an essential requirement for economic development. The ability of Waterloo Region to market the region to new entrants and to retain the successful and growing companies within the region depend on the absolute certainty that supply is continually available. Recommendation : Where a Municipality owns employment land, its existing municipal role in employment land development can remain. Recommendation : That a Special Purpose Corporation (SPC) be established to develop strategic employment lands on the east side, including those adjacent to the airport, and other strategic lands as determined. Recommendation : The Special Purpose Corporation is governed by a professional board of directors responsible to the municipal shareholders, which would include the Regional Municipality of Waterloo. Recommendation : Take steps to change the Municipal Act to enable the Regional Municipality to be involved in the acquisition, development and disposal of sites for industrial, commercial, and institutional uses. Recommendation :That a mandate be formalized, and business plan created and a development plan prepared for the East Side and Airport. Recommendation :To enter into joint venture development agreements with private land owners if required. Recommendation :To be initially capitalized by the Region of Waterloo and the Municipalities. Recommendation :Existing public land in the East Side of Cambridge and Woolwich to be transferred to the Special Purpose Development Corporation. This could also include a transfer of land, with consideration, from the Ontario Infrastructure and Lands Corporation. Recommendation :A detailed plan and development program is put in place. 4 - 134 MALONE GIVEN PARSONS LTD. 107 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Recommendation :Phased investment in servicing is committed by the shareholders. Recommendation : Land is marketed directly to industries and to private developers. Recommendation : The Corporation should be structured so that it can be sold wholly or in part to private / institutional investors in the future if desired. Recommendation :In the longer term, the major role of developing and selling employment land should transition to the private sector. 7.3Implementation The following time line chart summarizes the main action tasks that will be required over the next two years to implement the recommendations. The description of tasks should be considered as a general indication only. It is expected that the Regional Economic Development Strategy will generate a more detailed implementation framework. The phases are described briefly below in Table 7.1. Table 7.1: Proposed High Level Implementation Plan 20132014 ACTIVITY Quarter 2Quarter 3Quarter 4Quarter 1Quarter 2Quarter 3Quarter 4 AMJJASONDJFMAMJJASOND Phase 1: Strategy & Consensus 1.1Reach Consensus on the Need for a Regional Economic Strategy Establish Office of Economic Policy (OEP) 1.2 Undertake Regional Economic Development Strategy 1.3 1.4 Undertake Regional Employment Land Strategy 1.5 Municipal Act Change Phase 2: Transition to Development Corporation 2.1Establish Articles, Legal Entity & Governance Structure 2.2 Establish Preliminary Budget 2.3 Select Chair & Board of Directors 2.4Selection of CEO, Staff 2.5Economic Strategy Implementation Plan 2.6 Service Agreements with Municipalities 2.7 Implementation of Strategy Commences X Phase 3: Employment Land Implementation 3.1Confirm Approach 3.2 Confirm Priorities & Budgets 3.3 Establish Implementing Agency 3.4 Implementation Commences X 108 MALONE GIVEN PARSONS LTD. 4 - 135 A STAKEHOLDER CONTACT LIST 4 - 136 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Stakeholder Contact List The following is a list of the stakeholder organisations referred to in chapter three, that were consulted as part of the consultation phase of the study. This list consists of individuals from the 8 Waterloo Region municipalities, business associations, post-secondary institutions, labour force development groups, nongovernmental organisations, provincial organisations and political figures. 4 - 137 MALONE GIVEN PARSONS LTD. A-1 4 - 138 4 - 139 4 - 140 4 - 141 4 - 142 4 - 143 B LEGAL EXTRACTS 4 - 144 ONTARIO REGULATION 599/06 MUNICIPAL SERVICES CORPORATIONS Definitions 1. In this Regulation, “private person” means a person who is not a municipality, the Province of Ontario, Canada or an agent of any of them; “public sector entity” means, (a) a municipality, (b) the Crown in right of Ontario, (c) the Crown in right of Canada, or (d) a combination of them; “wholly-owned corporation” means, (a) a corporation all of whose shares are owned by a municipality or by a municipality and one or more other public sector entities, and (b) a corporation in which a municipality, by itself or together with one or more other public sector entities, has an entitlement to all of the voting rights allocated to the members of the corporation. O. Reg. 599/06, s. 1. Exercise of s. 203 (1) powers 2. (1) A municipality in exercising the powers referred to in subsection 203 (1) of the Act in relation to a corporation shall do so in accordance with this Regulation. O. Reg. 599/06, s. 2 (1). (2) Sections 7, 12, 13, 14 and 15 apply to a municipality in relation to a corporation only if the municipality uses or expects to use a power referred to in section 3 or subsection 4 (2), (3) or 5 (1) in relation to the corporation. O. Reg. 599/06, s. 2 (2). (3) Sections 17 to 22 apply to a corporation only if a municipality uses or expects to use a power referred to in section 3 or subsection 4 (2), (3) or 5 (1) in relation to the corporation. O. Reg. 599/06, s. 2 (3). GPRCM ENERAL OWERS IN ELATION TO ORPORATIONS FOR UNICIPALITIES Power to establish corporations 3. A municipality may use the power to referred to in paragraph 1 of subsection 203 (1) of the Act to establish a corporation only if the municipality by itself, or together with one or more other public sector entities, establishes the corporation and, (a) the corporation’s purpose is to provide a system, service or thing that the municipality itself could provide; or (b) the establishment of the corporation is expressly authorized by this Regulation. O. Reg. 599/06, s. 3. Powers in relation to incorporators, members, directors, officers 4. (1) A municipality may use the powers referred to in paragraph 2 of subsection 203 (1) of the Act to nominate or authorize a person to act as a director or officer of a corporation in relation to any corporation whether incorporated under this or any other Act. O. Reg. 599/06, s. 4 (1). 4 - 145 (2) A municipality may use the power referred to in paragraph 2 of subsection 203 (1) of the Act to nominate or authorize a person to act as an incorporator of a corporation only if the corporation is one the municipality may establish under this Regulation. O. Reg. 599/06, s. 4 (2). (3) A municipality may use the power referred to in paragraph 2 of subsection 203 (1) of the Act to nominate or authorize a person to act as a member of a corporation only if the corporation is established by a public sector entity and it carries on business in the municipality or in the municipality and another municipality. O. Reg. 599/06, s. 4 (3). Powers in relation to securities of corporations 5. (1) Subject to section 14 of this Regulation, a municipality may use the powers referred to in paragraphs 4 and 5 of subsection 203 (1) of the Act to acquire, hold, dispose of, guarantee and otherwise deal with securities of a corporation only if the corporation is established by a public sector entity and the corporation carries on business in the municipality or in the municipality and another municipality. O. Reg. 599/06, s. 5 (1). (2) Nothing in this Regulation restricts the powers of a municipality to provide assistance under an exception to subsections 106 (1) and (2) of the Act, make a grant under section 107 of the Act, or make an investment or undertake other financial activities under Part XIII of the Act. O. Reg. 599/06, s. 5 (2). DM UTIES OF UNICIPALITY Business case study 6. A municipality shall adopt a business case study before it uses the powers referred to in section 3, 4 or 5 to, (a) establish a corporation either alone or with one or more other public sector entities; (b) purchase securities in a corporation established by one or more public sector entities other than the municipality; (c) become a member of a corporation established by one or more public sector entities other than the municipality; or (d) submit, with respect to a corporation for which a study was undertaken under clause (a), (b) or (c), or cause a corporation for which a study was undertaken under clause (a), (b) or (c) to submit, articles of amendment or any other articles or supplementary letters patent. O. Reg. 599/06, s. 6. Asset transfer policies 7. (1) A municipality shall adopt and maintain policies on asset transfers to corporations. O. Reg. 599/06, s. 7 (1). (2) A municipality shall not transfer any of its assets to a corporation before the municipality adopts the policies referred to in subsection (1). O. Reg. 599/06, s. 7 (2). Public participation 8. Before establishing a corporation under section 3, a municipality shall consult with the public about the proposal to establish the corporation. O. Reg. 599/06, s. 8. Economic development corporations 9. (1) If a municipality establishes a corporation for the sole purpose of providing one or more economic development services, the municipality may also designate the corporation as a designated economic development corporation. O. Reg. 599/06, s. 9 (1). 4 - 146 (2) Despite section 21 of this Regulation, if a municipality designates a corporation under subsection (1), the corporation is a local board of the municipality for the purposes of section 326 of the Act. O. Reg. 599/06, s. 9 (2). (3) Economic development services provided by and for the purposes of a corporation designated by a municipality under subsection (1) are prescribed as special services for the purposes of clause 326 (1) (a) of the Act. O. Reg. 599/06, s. 9 (3). (4) In this section, “economic development services” means, (a) the promotion of the municipality for any purpose, including by the collection and dissemination of information and the development of economic development strategic plans, (b) the acquisition, development and disposal of sites in the municipality for residential, industrial, commercial and institutional uses, (c) provision of public transportation systems, (d) provision of residential housing, (e) provision of general parking facilities, (f) providing a counselling service to or encouraging the establishment and initial growth of small businesses operating or proposing to operate in the municipality, (g) undertaking community improvement consistent with a community improvement plan approved by the municipality under subsection 28 (4) of the Planning Act, (h) improvement, beautification and maintenance of municipally-owned land, buildings and structures in an area designated by the municipality beyond the standard provided at the expense of the municipality generally, and promotion of any area of the municipality as a business or shopping area, (i) provision of facilities for amusement or for conventions and visitors’ bureaus, (j) provision of culture and heritage systems. O. Reg. 599/06, s. 9 (4). Holding corporations 10. (1) A municipality may use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation incorporated for the purpose of holding shares in one or more other corporations only if, (a) the corporation is established by the municipality or the municipality and one or more other municipalities; (b) the articles of incorporation of the corporation restrict the ownership of any and all voting and non-voting shares in the corporation to the municipality or to the municipality and one or more other municipalities; and (c) the articles of incorporation of the corporation restrict the powers of the corporation to those necessary to acquire, hold, dispose of and otherwise deal with, (i) shares of one or more corporations established under any Act by the municipality, (ii) shares of one or more corporations established under any Act by another municipality that the municipality has agreed to allow to carry on business in the municipality, or 4 - 147 (iii) any combination of shares described in subclauses (i) and (ii). O. Reg. 599/06, s. 10 (1). (2) In subclauses (1) (c) (i) and (ii), “corporation” means a corporation other than a corporation established by a municipality for the purpose of holding shares in one or more other corporations. O. Reg. 599/06, s. 10 (2). Special corporation, Windsor-Detroit Tunnel 10.1 (1) The City of Windsor may, by itself or together with one or more other public sector entities, use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that satisfies the following conditions: 1. It carries on business, i. in the City of Detroit and elsewhere in the State of Michigan, or ii. in the City of Detroit, elsewhere in the State of Michigan and in the City of Windsor. 2. Its purposes are restricted to, i. managing, operating and maintaining all or part of the Tunnel, ii. holding shares in one or more corporations established for the purpose of managing, operating and maintaining all or part of the Tunnel, or iii. a combination of the purposes listed in subparagraphs i and ii. O. Reg. 371/07, s. 1. (2) Sections 10 and 16 do not apply to a corporation established under subsection (1). O. Reg. 371/07, s. 1. (3) Without limiting the generality of subsection (1), the power to establish a corporation under that subsection includes power to incorporate a corporation under the laws of the State of Michigan. O. Reg. 371/07, s. 1. (4) Nothing in subsection (1) prevents the City of Windsor from using the powers referred to in subsection 203 (1) of the Act in relation to a corporation that carries on business in relation to the Tunnel only in the City of Windsor. O. Reg. 371/07, s. 1. (5) In this section, “City of Detroit” means the City of Detroit in the State of Michigan; “State of Michigan” means the State of Michigan in the United States of America; “Tunnel” means the motor vehicle tunnel that connects the City of Windsor with the City of Detroit, and includes any ancillary facilities for the transfer of passengers between municipal transportation systems of the City of Windsor and the City of Detroit. O. Reg. 371/07, s. 1. M R ULES FOR UNICIPALITY Prohibited use of powers in relation to corporations 11. (1) Despite section 3, subsections 4 (2), (3) and 5 (1) of this Regulation, a municipality shall not use any of the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation if the business or activities of the corporation include 4 - 148 doing anything that the municipality or any of its local boards may do or are required to do under any of the following Acts: 1. Ambulance Act. 2. Child and Family Services Act. 3. Fire Protection and Prevention Act, 1997. 4. Health Protection and Promotion Act. 5. Long-Term Care Homes Act, 2007 in respect of long-term care homes under Part VIII of that Act. 6. Police Services Act. 7. Provincial Offences Act. 8. Public Libraries Act. 9. Ontario Works Act, 1997. O. Reg. 599/06, s. 11 (1); O. Reg. 87/10, s. 1 (1). (2) Despite subsection (1), a municipality may use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that carries on business or activities in connection with a municipality, local board, public hospital, university, college or school board operating under any of the Acts listed in that subsection, but only if the business or activities of the corporation in connection with those entities are restricted to the provision of administrative services to them. O. Reg. 599/06, s. 11 (2). (3) Despite section 3 and subsections 4 (2), (3) and 5 (1) of this Regulation, a municipality shall only use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that carries on any business or activities in connection with a long-term care home under the Long-Term Care Homes Act, 2007 other than a long-term care home under Part VIII of that Act if the business or activities of the corporation are restricted to the construction, operation, maintenance and ownership, including ownership of land, of facilities that are new when the corporation first carries on its business with respect to them. O. Reg. 87/10, s. 1 (2). (4) Despite section 3 and subsections 4 (2), (3) and 5 (1) of this Regulation, a municipality shall not use any of the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to corporation if the business or activities of the corporation include requiring a person to pay an administrative penalty in respect of the person’s failure to comply with any by-law of the municipality or any other municipality respecting the parking, standing or stopping of vehicles. O. Reg. 599/06, s. 11 (4). Conditions for incorporation 12. (1) If a municipality proposes to transfer an asset to a corporation and the Province of Ontario has contributed funds for the purchase or improvement of the asset, the municipality shall give notice of the proposal to every Minister that made all or part of the contribution on behalf of the Province. O. Reg. 599/06, s. 12 (1). (2) A Minister who receives a notice under subsection (1) may accept the valuation of the treasurer of the municipality or may otherwise determine the value of the contribution and shall notify the municipality in writing within six months of the receipt of the notice as to the requirement for repayment or to indicate the release of the Province’s interest in the asset being transferred or the proceeds of the transfer. O. Reg. 599/06, s. 12 (2). (3) A municipality may transfer an asset to which the notice requirement in subsection (1) applies if one of the following conditions is met: 4 - 149 1. Six months have passed since the municipality gave any notices required by this section and no response has been received from the Province within that period. 2. The Province has notified the municipality of its acceptance of the valuation by the treasurer and of any requirement for repayment. 3. The Province has notified the municipality of its rejection of the valuation by the treasurer, of its own valuation and of any requirement for repayment. 4. The Province has notified the municipality that it releases its interest in the asset being transferred or in the proceeds of the transfer. O. Reg. 599/06, s. 12 (3). No assignment 13. A municipality shall not assign or transfer any right granted to it in any agreement between the municipality and the Province of Ontario to a corporation without first obtaining the consent of the Minister responsible for the agreement. O. Reg. 599/06, s. 13. Debt instruments 14. (1) A municipality may use the powers referred to in paragraphs 4 and 5 of subsection 203 (1) of the Act to acquire, hold, dispose of, guarantee and otherwise deal with bonds, debentures, promissory notes, mortgages and similar evidences of indebtedness of a corporation that may issue shares only if the debt would be incurred by reason of the transfer of a municipal property asset to the corporation. O. Reg. 599/06, s. 14 (1). (2) In this section, “municipal property asset” means an asset of the municipality that is land, equipment or other goods. O. Reg. 599/06, s. 14 (2). Assistance to corporation 15. (1) Despite section 106 of the Act,a municipality may provide assistance to a corporation, (a) if the corporation is a wholly-owned corporation and is limited by its articles or letters patent to providing services to the owners or members of the corporation; or (b) if the purpose of the assistance is to subsidize the cost of public transportation facilities or services or public access to recreational and cultural facilities. O. Reg. 599/06, s. 15 (1). (2) The types of assistance that may be provided under subsection (1) are, (a) giving, lending or selling any property of a municipality, including money; (b) guaranteeing borrowing; (c) providing the services of employees of or persons under contract with a municipality. O. Reg. 599/06, s. 15 (2). (3) The assistance provided under clause (2) (a), (b) or (c) need not be at fair market value. O. Reg. 599/06, s. 15 (3). (4) The treasurer shall prepare a statement of the value of any grant to a corporation or an estimate of the fair market value of any other assistance provided at less than fair market value to a corporation under this section. O. Reg. 599/06, s. 15 (4). 4 - 150 RC ULES FOR ORPORATIONS Territorial operation of corporation 16. (1) A corporation may only operate within the boundaries of a municipality with the agreement of the municipality. O. Reg. 599/06, s. 16 (1). (2) Despite subsection (1), a corporation may operate within the boundaries of an upper- tier municipality without the agreement of any lower-tier municipality that forms part of that upper-tier municipality for municipal purposes if the corporation’s purpose is to provide a system, service or thing that the upper-tier municipalityitself could provide. O. Reg. 599/06, s. 16 (2). (3) Despite subsection (1), a corporation may operate within the boundaries of a lower- tier municipality that forms part of an upper-tier municipality for municipal purposes without the agreement of the upper-tier municipality if the corporation’s purpose is to provide a system, service or thing that the lower-tier municipality itself could provide. O. Reg. 599/06, s. 16 (3). (4) This section applies to any corporation established by, (a) a municipality using the power referred to in paragraph 1 of subsection 203 (1) of the Act; (b) the City of Toronto using the power referred to in paragraph 1 of subsection 148 (1) of the City of Toronto Act, 2006; (c) the Province of Ontario together with one or more municipalities referred to in clause (a) or (b); (d) the Crown in right of Canada together with one or more municipalities referred to in clause (a) or (b); or (e) any combination of clauses (a), (b), (c) and (d). O. Reg. 599/06, s. 16 (4). Amendments to corporate documents 17. (1) A corporation shall not make an amendment to its articles of incorporation or letters patent or to any subsequent articles or supplementary letters patent if the amendment would permit the corporation, (a) to carry on a purpose other than a purpose that would be permitted by section 3; (b) to carry on any business or activities that would include doing anything that the municipality or any of its local boards could do or be required to under any of the Acts mentioned in subsection 11 (1), except the business or activity of providing administrative services permitted by subsection 11 (2); or (c) to carry on any business or activities that would include doing anything inconsistent with subsection 11 (3) or (4). O. Reg. 599/06, s. 17 (1). (2) A corporation shall not submit articles of amendment or any other articles or supplementary letters patent under any Act unless the municipality has first adopted a business case study in relation to the proposed amendment, articles or supplementary letters patent. O. Reg. 599/06, s. 17 (2). Limitations on actions of corporation 18. (1) A corporation shall not act as an incorporator of another corporate body that is incorporated under any Act. O. Reg. 599/06, s. 18 (1). 4 - 151 (2) A corporation may only invest in securities prescribed under section 418 of the Act and, for the purpose of this subsection, any regulation made under that section of the Act applies to the corporation as if it were a municipality. O. Reg. 599/06, s. 18 (2). (3) Despite subsection (2), to expand or otherwise carry on its purposes, a corporation may acquire all of the voting and non-voting shares of, (a) another corporation established by one or more municipalities; (b) a body corporate incorporated under any Act if the articles of incorporation of the body corporate restrict the powers or limit the objects of the body corporate to carrying on one or more of the purposes set out in clause 3 (a). O. Reg. 599/06, s. 18 (3); O. Reg. 371/07, s. 2 (1). (4) A body corporate, the shares of which have been acquired under subsection (3), must be dissolved and its remaining assets and liabilities transferred to the acquiring corporation within one year of the date of the acquisition of the shares. O. Reg. 599/06, s. 18 (4). (4.1) Subsections (3) and (4) do not apply to a corporation established under section 10 or 10.1. O. Reg. 371/07, s. 2 (2). (5) If any purpose or business of a corporation includes the provision of a public utility for water or sewage, (a) the corporation shall not issue shares or give voting rights attached to the shares to a private person if it is a share corporation or, if it is a non-share corporation, it shall allocate voting rights to a member of the corporation only if the member is not a private person; and (b) the corporation shall not transfer to a private person any asset that is part or all of a municipal drinking water system or of a sewage works unless the board of directors of the corporation has declared, by resolution, that the asset is no longer needed for the purposes of the system. O. Reg. 599/06, s. 18 (5). (6) If any purpose or business of a corporation includes a program for the supervision, encouragement and guidance of recreational activity for persons under the age of 18, the corporation shall not issue shares or give voting rights attached to the shares to a private person if it is a share corporation or, if it is a non-share corporation, it shall allocate voting rights to a member of the corporation only if the member is not a private person. O. Reg. 599/06, s. 18 (6). (7) In this section, “municipal drinking water system” has the same meaning as in the Safe Drinking Water Act, 2002; “sewage works” has the same meaning as in the Ontario Water Resources Act. O. Reg. 599/06, s. 18 (7). Deemed members 19. The directors and officers of a corporation shall be deemed to be members for the purposes of the Municipal Conflict of Interest Act. O. Reg. 599/06, s. 19. Deemed institutions 20. A corporation that is a wholly-owned corporation or a corporation whose business or activities include the provision of administrative services to any municipality, local board, public hospital, university, college or school board is deemed to be an institution for the purposes of theMunicipal Freedom of Information and Protection of Privacy Act. O. Reg. 599/06, s. 20. 4 - 152 Status of corporation 21. (1) A corporation is not a local board for the purposes of any Act. O. Reg. 599/06, s. 21 (1). (2) Despite subsection (1), a corporation shall be deemed to be a local board for purposes of subsection 270 (2) of the Act, and for the purposes of the Environmental Assessment Act, the Municipal Conflict of Interest Act, the Emergency Management and Civil Protection Act, and subsection 56.2 (3) of the Capital Investment Plan Act, 1993. O. Reg. 599/06, s. 21 (2). (3) Despite subsection (1), if a corporation is wholly-owned, it shall be deemed to be a local board for the purposes of the Development Charges Act, 1997. O. Reg. 599/06, s. 21 (3). Result of non-compliance 22. Any of the following matters may be considered sufficient cause under any Act to cancel the certificate of incorporation of a corporation or the letters patent or supplementary letters patent of a corporation: 1. The corporation does not meet the requirements of this Regulation. 2. A certificate is issued under the Business Corporations Act or any other Act under which a municipality establishes a corporation that is inconsistent with this Regulation. 3. Letters patent or supplementary letters patent are granted under any Actthat are inconsistent with this Regulation. 4. The corporation acts outside the purposes to which it is restricted by its articles or letters patent. 5. The fact that the municipality did not comply with the requirements of section 12 in relation to the incorporation. O. Reg. 599/06, s. 22. 23. Omitted (revokes other Regulations). O. Reg. 599/06, s. 23. 24. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 599/06, s. 24. 4 - 153 4 - 154 4 - 155 Municipal Act, 2001, as amended 11. (1) A lower-tier municipality and an upper-tier municipality may provide any service or thing that the municipality considers necessary or desirable for the public, subject to the rules set out in subsection (4). 2006, c. 32, Sched. A, s. 8. By-laws (2) A lower-tier municipality and an upper-tier municipality may pass by-laws, subject to the rules set out in subsection (4), respecting the following matters: 1. Governance structure of the municipality and its local boards. 2. Accountability and transparency of the municipality and its operations and of its local boards and their operations. 3. Financial management of the municipality and its local boards. 4. Public assets of the municipality acquired for the purpose of exercising its authority under this or any other Act. 5. Economic, social and environmental well-being of the municipality. 6. Health, safety and well-being of persons. 7. Services and things that the municipality is authorized to provide under subsection (1). 8. Protection of persons and property, including consumer protection. 2006, c. 32, Sched. A, s. 8. By-laws re: matters within spheres of jurisdiction A lower-tier municipality and an upper-tier municipality may pass by-laws, subject to (3) the rules set out in subsection (4), respecting matters within the following spheres of jurisdiction: 1. Highways, including parking and traffic on highways. 2. Transportation systems, other than highways. 3. Waste management. 4. Public utilities. 5. Culture, parks, recreation and heritage. 6. Drainage and flood control, except storm sewers. 7. Structures, including fences and signs. 8. Parking, except on highways. 9. Animals. 10. Economic development services. 11. Business licensing. 2006, c. 32, Sched. A, s. 8. Rules (4) The following are the rules referred to in subsections (1), (2) and (3): 1. If a sphere or part of a sphere of jurisdiction is not assigned to an upper-tier municipality by the Table to this section, the upper-tier municipality does not have the power to pass by-laws under that sphere or part and does not have the power to pass by-laws under subsection (1) or (2) that, but for this paragraph, could also be passed under that sphere or part. 2. If a sphere or part of a sphere of jurisdiction is assigned to an upper-tier municipality exclusively by the Table to this section, its lower-tier municipalities do not have the 4 - 156 power to pass by-laws under that sphere or part and do not have the power to pass by-laws under subsection (1) or (2) that, but for this paragraph, could also be passed under that sphere or part. 3. If a sphere or part of a sphere of jurisdiction is assigned to an upper-tier municipality non-exclusively by the Table to this section, both the upper-tier municipality and its lower-tier municipalities have the power to pass by-laws under that sphere or part. 4. If a lower-tier municipality has the power under a specific provision of this Act, other than this section, or any other Act to pass a by-law, its upper-tier municipality does not have the power to pass the by-law under this section. 5. If an upper-tier municipality has the power under a specific provision of this Act, other than this section, or any other Act to pass a by-law, a lower-tier municipality of the upper-tier municipality does not have the power to pass the by-law under this section. 6. Paragraphs 4 and 5 apply to limit the powers of a municipality despite the inclusion of the words “without limiting sections 9, 10 and 11” or any similar form of words in the specific provision. 7. The power of a municipality with respect to the following matters is not affected by paragraph 4 or 5, as the case may be: i. prohibiting or regulating the placement or erection of any sign, notice or advertising device within 400 metres of any limit of an upper-tier highway, ii. any other matter prescribed by the Minister. 2006, c. 32, Sched. A, s. 8. One power not affecting another (5) The power to pass a by-law respecting a matter set out in a paragraph of subsection (2) or (3) is not limited or restricted by the power to pass a by-law respecting a matter set out in another paragraph of subsection (2) or (3). 2006, c. 32, Sched. A, s. 8. Services or things provided by others (6) The power of a municipality to pass a by-law respecting the matter set out in paragraph 7 of subsection (2) does not include the power to pass a by-law respecting services or things provided by a person other than the municipality or a municipal service board of the municipality. 2006, c. 32, Sched. A, s. 8. Services or things provided by other tier (7) The power of a municipality to pass a by-law under subsection (3) under each sphere of jurisdiction does not, except as otherwise provided, include the power to pass a by-law respecting services or things provided by its upper-tier or lower-tier municipality, as the case may be, of the type authorized by that sphere. 2006, c. 32, Sched. A, s. 8. Services or things provided by others (8) The power of a municipality to pass a by-law under subsection (3) under the following spheres of jurisdiction does not, except as otherwise provided, include the power to pass a by- law respecting services or things provided by any person, other than the municipality or a municipal service board of the municipality, of the type authorized by that sphere: 1. Public utilities. 2. Waste management. 3. Highways, including parking and traffic on highways. 4. Transportation systems, other than highways. 5. Culture, parks, recreation and heritage. 6. Parking, except on highways. 2006, c. 32, Sched. A, s. 8. 4 - 157 Exception (9) Nothing in subsection (6), (7) or (8) prevents a municipality passing a by-law with respect to services or things provided by any person to the extent necessary, (a) to ensure the physical operation of a system of the municipality or of a municipal service board of the municipality is not impaired; or (b) to ensure the municipality, a municipal service board of the municipality or a system of the municipality or municipal service board meet any provincial standards or regulations that apply to them. 2006, c. 32, Sched. A, s. 8. “economic development services” means, in respect of a municipality, the promotion of the municipality by the municipality for any purpose by the collection and dissemination of information and the acquisition, development and disposal of sites by the municipality for industrial, commercial and institutional uses Definition (10) In this section, “local board” means a local board as defined in section 10. 2006, c. 32, Sched. A, s. 8. Regulations (11) The Minister may make regulations prescribing matters for the purpose of subparagraph 7 ii of subsection (4). 2006, c. 32, Sched. A, s. 8. 4 - 158 TABLE Sphere of Jurisdiction Part of Sphere Assigned Upper-tier Municipality (ies) Exclusive or Non-Exclusive to which Part of Sphere Assignment assigned 1. Highways, including parking Whole sphere All upper-tier municipalities Non-exclusive and traffic on highways 2. Transportation systems, Airports All upper-tier municipalities Non-exclusive other than highways FerriesAll upper-tier municipalities Non-exclusive Disabled passenger transportation Peel, Halton Non-exclusive systems Whole sphere, except airports and Waterloo, York Exclusive ferries 3. Waste management Whole sphere, except waste Durham, Halton, Lambton, Exclusive collection Oxford, Peel, Waterloo, York 4. Public utilities Sewage treatment All counties, Niagara, Waterloo, Non-exclusive York Durham, Halton, Muskoka, Exclusive Oxford, Peel Collection of sanitary sewage All counties, Niagara, Waterloo, Non-exclusive York Durham, Halton, Muskoka, Exclusive Oxford, Peel Collection of storm water and All upper-tier municipalities Non-exclusive other drainage from land Water production, treatment and All upper-tier municipalities Exclusive storage except counties Water distribution Niagara, Waterloo, York Non-exclusive Oxford, Durham, Halton, Exclusive Muskoka, Peel 5. Culture, parks, recreation Whole sphere All upper-tier municipalities Non-exclusive and heritage 6. Drainage and flood control, Whole sphere All upper-tier municipalities Non-exclusive except storm sewers 7. Structures, including fences Whole sphere, except fences and Oxford Non-exclusive and signs signs 8. Parking, except on highways Municipal parking lots and All upper-tier municipalities Non-exclusive structures 9. Animals NoneNone 10. Economic development Promotion of the municipality for Durham Exclusive services any purpose by the collection and All counties, Halton, Muskoka, Non-exclusive dissemination of information Niagara, Oxford, Peel, Waterloo, York Acquisition, development and Durham Exclusive disposal of sites for industrial, Halton, Lambton, Oxford Non-exclusive commercial and institutional uses 11. Business licensing Owners and drivers of taxicabs, Niagara, Waterloo Exclusive tow trucks, buses and vehicles (other than motor vehicles) used for hire Taxicab brokers Salvage business Second-hand goods business Drainage business, plumbing York Exclusive business Lodging houses, septic tank York Non-exclusive business 4 - 159 C COMPARATIVE ANALYSIS 4 - 160 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table C.1 Shifting Focus of Economic Development Practices ATTRIBUTESOLD ECONOMY(Industrial)NEW ECONOMY(post industrial ) Economy Wide Organizational FormVertical IntegrationHorizontal Networks Scope of CompetitionNationalGlobal MarketsStableVolatile Sub-Region CompetitionMediumHigh Geographic Mobility of BusinessLowHigh Role of GovernmentProvider/TargetingSteering/Enabling Labour and Workforce Wide Labour management RelationsAdversarialCollaboration SkillsJob Based /StaticKnowledge based /Transferable/ Continuously renewed/ EducationTask Specific Transportable Jobs Creation/ Assessment Higher Wages and Incomes Policy Focus Growth/Productivity Improvement Production Wide Resource OrientationMaterial ResourcesInformation and Knowledge Relations with other firmsIndependent VenturesAlliances and Collaborations Innovation, quality, time to market Sources of Competitive AdvantageAgglomeration Economics and cost Primary Driver of ProductivityMechanization/Digital Innovation Invention and Growth DriversCapital/ Labour/Land Knowledge Role of Research and InnovationLowHigh Production MethodsMass ProductionFlexible Production Protectionist and SubsidyInfrastructure provider and Role of Government ProviderPrivatization enabler Infrastructure Soft (Organizational networking FormHard and information) Digital Highway( Information TransportHighways Technology) Sustainable Smart Power Grid and PowerLocal /Self Generation Co-Generation Form of OrganizationRegulatedDe-regulated CommunicationsCopper WireFibre/Wireless/Cloud LearningClassroom/lecturesDistance/self defined C-1 MALONE GIVEN PARSONS LTD. 4 - 161 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY C-2 MALONE GIVEN PARSONS LTD. 4 - 162 D EMPLOYMENT LAND USE MAPS 4 - 163 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure D.1 City of Cambridge Employment Land Uses D-1 MALONE GIVEN PARSONS LTD. 4 - 164 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure D.2 City of Kitchener Employment Land Uses D-2 MALONE GIVEN PARSONS LTD. 4 - 165 4 - 166 4 - 167 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure D.5 Township of Woolwich Employment Land Uses D-5 MALONE GIVEN PARSONS LTD. 4 - 168 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure D.6 Township of Wilmot Employment Land Uses D-6 MALONE GIVEN PARSONS LTD. 4 - 169 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Figure D.7 Township of Wellesley Employment Land Uses D-7 MALONE GIVEN PARSONS LTD. 4 - 170 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY D-8 MALONE GIVEN PARSONS LTD. 4 - 171 E WATERLOO REGION ECONOMIC DEVELOPMENT EXPENDITURES 4 - 172 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Table E.1 Regional Economic Development Human & Financial Capital 2012 Waterloo Economic Tourism Development Budget Staff CTT Communitech Marketing 2012 Corp. (WRTM Corp.) $828,8009 City of Waterloo (includes $153K to CEI) 4 $149,000 $35,000 $90,000 $4,315,000 26 City of Kitchener (includes $50K to CEI) (6 8P/T) $155,000 $30,000 $90,000 City of Cambridge $1,255,000 6 $147,000 $5,000 $87,400 Township of Woolwich $132,270 1 $10,000 - $10,000 Township of Wellesley $12,500 0.5 $5,000 - $5,000 Township of Wilmot $27,500 1 $10,000 - $10,000 Township of North Dumfries $7,500 0.5 $5,000 - $5,000 14 indirect $868,000 (10 at CTT & 4 Region of Waterloo (includes $100K to at WRTM CEI) Corp.) $468,000 - $300,000 51 F/T & P/T Total (including 14 $7,446,300 indirect staff) $941,000 - $597,400 E-1 MALONE GIVEN PARSONS LTD. 4 - 173 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY E-2 MALONE GIVEN PARSONS LTD. 4 - 174 F BIBLIOGRAPHY 4 - 175 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Section 2 Beltrame, J. (2012, October 5). Markets, economists enthused as Canada and U.S. report strong job gains. The Record. Retrieved from www.therecord.com/ Bruns, A. (2012, September). Innovation to Spare, Can a nation be stable and dynamic at the same time? The answer from Canada is a distinct Site Selection.Retrieved from http://www.siteselection.com/ Waterloo Region Business Advantages. th Retrieved 2012, September 25from www.conferenceboard.ca/press/newsrelease/ Waterloo Region Business & Financial. th Retrieved 2012, September 25from http://www.techtriangle.com/include/get.php?nodeid=2444 Central 1 Credit Union. (2012, October) Economic Analysis of Ontario. th Vol. 3. Issue 6. Retrieved 2012, November 5from http://www.central1.com/publications/economics/pdf/ea/ea%202012_ont06 .pdf Herhal, C. (2012, June 28). Waterloo Region will lead the country in economic growth, Conference Board says. The Record. Retrieved from www.therecord.com/ Region of Waterloo. (2009). Region of Waterloo 2009 Industrial and Business Park Vacant Land Inventory. strongest economy, survey shows. The Record. Retrieved from www.therecord.com/ F-1 MALONE GIVEN PARSONS LTD. 4 - 176 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Tal, B. (2012, January 19). Canadian Cities: An Economic Snapshot Toronto Continues To Lead the Pack. Metro Monitor, CIBC World Markets Inc. Retrieved from http://research.cibcwm.com/economic_public/download/metro_monitor.pd f The Conference Board of Canada. New Release Canada Falls to 14th Place in Global Competitiveness Ranking. (2012, September 5). Retrieved from www.conferenceboard.ca/press/newsrelease/ Workforce Planning Board of Waterloo Wellington Dufferin.(2012). Local Labour Market Plan Waterloo Wellington Dufferin Update 2012. Section 4 City of Toronto. (2009, August 6). Sharehold Direction Build Toronto Inc. Retrieved from http://www.buildtoronto.ca/documents/shareholder-direction.pdf Economic Developers Association of Canada. (2011, September). Performance Measurement in Economic Development, Development of Performance Measurement Systems for Local and Regional Economic Development Organizations. Retrieved from http://www.edac.ca/home?p=1-1-1 Nelles. J. (2005, June). CIVIC CAPITAL IN THE WATERLOO REGION:Enabling Regional Economic Governance. University of Toronto Working Paper. Retrieved from http://www.utoronto.ca/progris/pdf_files/Civic%20Capital%20Waterloo.pd f Northeast Indiana Foundation. (2009, August). Best Practices in Regional and Local Economic Development. Retrieved from http://ded.mo.gov/Content/Tiamerica,%20Best%20ED%20Practices,%209- 25-09.pdf Region of Waterloo. (2011). 2011-2014 Strategic Plan.Retrieved from http://www.regionofwaterloo.ca/en/regionalgovernment/20112014strategic plan.asp F-2 MALONE GIVEN PARSONS LTD. 4 - 177 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Stimson, R., Roberts. B, Stough, R. (2007) Regional Economic Development: Analysis and Planning Strategy. New York: Springer Berlin Heidelberg. Tampa Bay Partnership Center for Business Intelligence. (2012). Regional Economic Scorecard. Retrieved from http://partnership.tampabay.org/subpage.asp?navid=7&id=124 Toronto District School Board and Toronto Lands Corporation. (2008, May 18) . Retrieved from http://www.torontolandscorp.com/index.php?option=com_content&view=article &id=5&Itemid=5 Value of Jobs. (2012).2012 JOBS Action Plan and Progress Report. Retrieved from http://www.valueofjobs.com/action_plan/index.html Zizys. T. (2012, April). Rowing Together: Best Practices for the Regional Coordination of Economic Development in the Toronto Region. Intergovernmental Committee for Economic and Labour Force Development.Retrieved from http://www.icecommittee.org/reports/research-series-coordination-of- economic-development/ F-3 MALONE GIVEN PARSONS LTD. 4 - 178 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE LEFT BLANK INTENTIONALLY F-4 MALONE GIVEN PARSONS LTD. 4 - 179 G EXISTING LOCAL ECONOMIC DEVELOPMENT SERVICES 4 - 180 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS Local Economic Development Services in the Waterloo Region April 2013 Local Economic Development Strategy and Planning Local Communications, Marketing & Brand Development Strategic Partnerships private sector, institutional or other levels of government Government Relations and Advocacy Community Economic Development Stakeholder Engagement Local Representation in Regional Partnerships CTT, Communitech, MIN, KW & Cambridge Chambers of Commerce Local Contributions to Provincial/National/International business development coordinated by CTT Local Economic Development Funds implementation and administration Local Business Development & Liaison inquiry response and support Business Retention & Expansion Downtown Investment and Vitality Arts and Culture Strategy program administration, investment and cluster facilitation Special Event Development and Facilitation Local Farmers Market - management and marketing Cluster or Industry Development Facilitation Tourism visitor information services and event coordination Local Municipal Employment Lands development and marketing Small Business Centre regional governance & partnership contributions Film Industry Liaison and Location Assistance G-1 MALONE GIVEN PARSONS LTD. 4 - 181 WATERLOO REGION ECONOMIC DEVELOPMENT STUDY ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS THIS PAGE LEFT BLANK INTENTIONALLY G-2 MALONE GIVEN PARSONS LTD. 4 - 182 4 - 183