HomeMy WebLinkAboutCAO-14-037 - Waterloo Region Economic Development Implementation Update
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: August 11, 2014
SUBMITTED BY: Jeff Willmer, Chief Administrative Officer, 519.741.2200 x7350
PREPARED BY: Jeff Willmer, Chief Administrative Officer, 519.741.2200 x7350
WARD (S) INVOLVED: all
DATE OF REPORT: July 25, 2014
REPORT NO.: CAO-14-037
SUBJECT:Waterloo Region Economic Development Implementation Update
______________________________________________________________________________________
RECOMMENDATION:
That the Waterloo Region Economic Development Strategy, as appended to Report
CAO-14-037, be approved in principle with a final document and detailed
implementation plan to be developed for Council’s future consideration; and
That the creation of the Waterloo Region Economic Development Corporation, as
described in Report CAO-14-037, be approved in principle subject to Council approval
of a future implementation and transition process; and further,
That staff be directed to continue to work with local and regional municipal partners to
develop associated implementation and transition plans with a target date of January
2016 for the Waterloo Region Economic Development Corporation to be fully
operational.
EXECUTIVE SUMMARY:
In 2012, the Region of Waterloo and all seven Area Municipalities commenced a study entitled
the “Waterloo Region Economic Development Study: Assessment of Economic Development
Services and the Provision of Employment Lands” to examine both the municipal delivery of
economic development services and issues around the adequate supply of employment lands.
The results of this study were presented at an All Council meeting and were subsequently
endorsed by each of the municipal councils throughout 2013.
The joint Economic Development Study (the Study) recognized the need for a new approach to
the delivery of economic development services throughout the region. Several action items
resulted from this study, including:
The initiation of a Waterloo Region Economic Development Strategy;
The evaluation of options for a new Waterloo Region Economic Development
Corporation;
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The creation of a new Region of Waterloo Office of Economic Development;
A request to amend the Municipal Act, 2001 to allow for regional participation in
employment land development;
Completion of the East Side Master Environmental Servicing Plan (MESP) and
Community Plan; and
The investigation of a Special Purpose Corporation to develop strategic employment
lands in Waterloo Region.
The following report provides an update on the implementation of the each of these action
items and the progress that has been made to date. Further, this report focusses on the status
of the Waterloo Region Economic Development Strategy (WREDS) and the recommended
framework for the new Waterloo Region Economic Development Corporation (WREDC) under
consideration. This work has been undertaken using a coordinated and collaborative approach
involving the Region, all of the Area Municipalities, Canada’s Technology Triangle (CTT) and
an extensive public/stakeholder consultation process. As a result, there is strong support for
the foundational elements proposed with the understanding that more work is needed to
develop appropriate implementation plans, including a well designed transition strategy for this
new economic development framework.
Staff are now requesting that Council endorse the recommendations outlined in this report as
they pertain to the preliminary strategic directions identified by the WREDS as well as the new
foundation framework proposed for the WREDC. This is a more detailed description of the
same material that was presented at the All Council Meeting on June 19, 2014.
Furthermore, it is recommended that staff develop more detailed implementation plans for
these two items, for future consideration by all municipal councils.
BACKGROUND:
The City along with the Region of Waterloo and the other Area Municipalities jointly
commissioned a study in 2012 to look at economic development issues in Waterloo Region.
Malone Given Parsons Ltd. (MGP) was retained and completed the study “Waterloo Region
Economic Development Study: Assessment of Economic Development Services and Provision
of Employment Lands” in April 2013. The results of this study were presented at an All Council
meeting on May 2, 2013 and the recommendations formally approved by Council on June 10
2013 following consideration of staff report CAO-13-017. Similar recommendations were also
endorsed by the Region and each of the Area Municipal Councils following respective staff
reports.
The joint Economic Development Study (the Study) recognized the need for a new approach to
the delivery of economic development services throughout the region. The action items
identified as part of this process and endorsed by Regional and Area Municipal Councils
included:
The creation of a Waterloo Region Economic Development Strategy;
The evaluation of options for a new Waterloo Region Economic Development
Corporation;
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The creation of a new Region of Waterloo Office of Economic Development;
A request to amend the Municipal Act, 2001 to allow for regional participating in
employment land development;
Completion of the Master Environmental Servicing Plan (MESP) and Community Plan
related to the East Side Lands; and
The investigation of a Special Purpose Corporation to develop strategic employment
lands in Waterloo Region.
This report provides an update on the progress and implementation to date of the action items
identified. Further it outlines the next steps that are anticipated to be completed throughout the
remainder of 2014.
REPORT:
Creation of a Waterloo Region Economic Development Strategy
Malone Given Parsons Ltd (MGP) was retained by the Region in partnership with the local
municipalities to provide services for the preparation of the region-wide Economic
Development Strategy. The preparation of this strategy was one of the primary
recommendations resulting from the earlier 2013 Study and represents the first time a region-
wide Economic Development Strategy has been developed.
The creation of the Waterloo Region Economic Development Strategy (WREDS) has been
overseen by a Steering Committee consisting of the CAOs of the Region and Area
Municipalities, as well as the CEO of Canada’s Technology Triangle Inc. In addition to the
Steering Committee, an Advisory Committee of highly experienced and knowledgeable
industry and community leaders was selected to provide advice and guidance throughout the
process. The membership of the Advisory Committee is listed in Attachment #1.
Building on the collaborative nature of the community, it was important that this process be as
open and inclusive as possible. As a result, the development of the strategy has also included
regular touch-points with the CTT Inc. Board of Directors, the municipal Economic
Development Officers and other practitioners, as well as updates at several All Council
meetings. A series of industry stakeholders sessions, a project website, as well as an Open
House held May 15, 2014, also ensured that there were many opportunities for extensive
community and partner involvement.
The WREDS has been organized by four main phases:
Phase One: Foundations, Facts & Analysis;
Phase Two: Strategic Directions - Vision, Goals & Objectives;
Phase Three: Action Plans & Implementation; and
Phase Four: Strategy Document Completion.
At the June 19, 2014 All Council Meeting, Regional and Area Municipal Staff along with MGP
presented an overview of the Waterloo Region Economic Development Strategy. This included
an overview of the strategy development process, the proposed strategic directions (vision,
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objectives and goals) and a series of preliminary action items that were identified as part of the
extensive consultation process. For more information on the draft WREDS strategic directions,
please see Attachment #2.
Staff are now recommending that Council approve in principle the draft WREDS strategic
directions outlined in Attachment 2. This includes the vision statement, four goals and twenty-
five objectives. A final document and detailed implementation plan will be developed, in
consultation with the Region and Area Municipalities, for Council’s future consideration.
Waterloo Region Economic Development Corporation
The Steering Committee and partner organizations, have evaluated several options related to
the creation of a new economic development entity. Based on this review, staff recommends
the creation of an independent or arms-length not-for-profit regional economic development
corporation.
With the Region and Area Municipalities anticipated to be the primary funders of the new
Waterloo Region Economic Development Corporation (WREDC), a relevant and sustainable
governance model would be critical to its overall success and effectiveness. It is
recommended that the WREDC be led by a Board of Directors which would be responsible for
the oversight of the new organization, as well as ensuring best-practices in terms of
governance. The Board of Directors would be a “skills-based board” of approximately 9-12
members, with a strong private sector focus. Individuals would be selected in such a way as to
ensure that the Board included people with:
An appropriate range and mix of skills (high priority);
Experience in a cross-section of various sectors of the regional economy; and
Knowledge of a variety of geographic areas/municipalities within the Region.
The Board of Directors would be selected by a "Selection Committee" including Regional
Chair, 3 City Mayors, 1 Township Mayor, 3 private sector members (from Advisory
Committee).
The new WREDC would be responsible for several key roles and responsibilities. This
includes:
Management of the regional economic development strategic plan and coordination with
other stakeholders;
Investment attraction to the Waterloo Region;
Liaison with Provincial and Federal government efforts to attract industry and grow key
sectors of the economy;
Marketing and promotion of the region;
Key sector development activities;
Talent development and people attraction (working with partners);
Data and research to support regional economic development activities;
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Coordination and collaboration of Area Municipal efforts in retaining and supporting the
expansion of “regional scale” businesses; and
Annual reporting to the Regional and Area Municipal Councils.
These roles would augment and complement the work of the other key partners in the regional
economic development framework, including those of the Area Municipalities and other key
public facing organizations. The proposed Structure, Governance and Roles and
Responsibilities of this new organization have been outlined in further detail in Attachment 3.
This includes additional information on the proposed approach to selecting the Board of
Directors and ensuring the horizontal and vertical integration of the new entity within the
current and/or revised economic development framework.
The establishment of a new organization is a significant change with the need to plan for, and
facilitate, a smooth transition to the new framework. As a result, CTT Inc. will continue to
operate throughout the planning and set-up phase of the new WREDC (2014-2015). Further,
there is an opportunity to merge key assets with the new WREDC, building on the strength and
expertise that already exists and to maintain momentum. The new WREDC will be fully
functional January 1, 2016.
Given the relationship of this new Economic Development Corporation within the evolving
economic development service delivery framework in Waterloo Region, it will be important to
ensure that the mandate and roles and responsibilities of this new entity are strategically
aligned with the proposed action items identified as part of the WREDS process. In light of this,
staff are recommending that Council endorse in principle the new foundation framework
proposed, subject to further refinement of the implementation plan with the Area Municipalities.
It is anticipated that this work would occur concurrently, and be coordinated with, the
implementation work plan related to the WREDS.
City of Kitchener Economic Development Division
The development of the WREDS and ultimately, the WREDC, recognizes the importance of a
defined role for the Area Municipalities in the area of economic development. The City’s
Economic Development Division will continue to provide the following services to implement
the overall strategy of the WREDS and to augment and support the functioning of the WREDC
going forward:
Community promotion;
Land and real estate development;
Point of contact for business into Area Municipal government (zoning, etc.);
Cluster development and Business retention and expansion activities (working with
regional partners);
Investment attraction and collaboration with WREDC;
Ensure area municipal government activities are aligned with the Regional Economic
Development Strategy; and
Establish protocol for dealing with investor prospects within the Area Municipal
organization.
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Supporting economic development infrastructure and strategy including: downtown
Kitchener, Arts and Culture, Special Events, Waterloo Region Small Business Centre,
Kitchener Market.
Region of Waterloo – Office of Economic Development
In June 2013, Regional Council endorsed the establishment of a Regional Office of Economic
Development. In early 2014, the first step in the creation of this new office was completed with
the recruitment of a new Manager of Economic Development (2 year contract). Short-term
deliverables of this office include:
Coordinating the development of a region-wide Economic Development Strategy in
partnership with the Area Municipalities, CTT Inc. and other economic development
stakeholders (in progress – as described above);
Coordinating the review of options and implementation plan for a new Waterloo
Region Economic Development Corporation (this report);
Updating the mid-year 2013 inventory of employment lands (completed - please see
Region of Waterloo Report P-14-010);
Producing an enhanced regional inventory of economic data, analysis and key
metrics (in progress); and
Evaluating the implications of a special purpose corporation to develop strategic
employment lands in Waterloo Region (initiated).
Regional Participation in Employment Land Development
The Municipal Act, 2001, as amended, determines the role and responsibilities that shape the
local governance framework, including the “spheres of jurisdiction” associated with each the
Regional and Area Municipal level. In December 2013 Regional Council endorsed a
recommendation that the Province of Ontario be requested to amend the Municipal Act, 2001,
so as to allow for Regional participation in the development of employment lands. In early
2014, each of the seven Area Municipalities also endorsed similar resolutions.
As a result of the collective support for this proposed amendment, a letter was sent on March
6, 2014 to the Minister of Municipal Affairs and Housing and the Minister of Finance to this
effect. The letter requested that the Table in Section 11 of the Municipal Act, 2001, as
amended, be revised to add the Regional Municipality of Waterloo to the list of Upper-tier
Municipality(ies) assigned “non-exclusive” legislative authority to participate in the assigned
sphere of “Acquisition, development, and disposal of sites for industrial, commercial and
institutional uses”. This letter was signed by the Regional Chair and included all eight Council
resolutions for their consideration.
Regional staff have been in contact with Senior Provincial staff who have indicated their
willingness to consider bringing forward the necessary amendments to the Municipal Act at an
appropriate time over the next year.
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Completion of the Master Environmental Servicing Plan (MESP) and Community Plan
for the East Side Lands
A key element in attracting and retaining employers in a competitive global economy is
ensuring that the Region has an adequate supply of development ready employment land.
Regional Council recognized the importance of development-ready employment land in the
Region’s 2011-2014 Strategic Plan by including the action to advance the East Side
Employment Lands to development readiness (Stage 1 including approximately 300 net ha
area of Prime Industrial Strategic Reserve lands). As a key step toward this objective, a Master
Environmental Servicing Plan (MESP) and Community Plan was undertaken in partnership
with the City of Cambridge and the Grand River Conservation Authority, and in consultation
with the City of Kitchener and the Township of Woolwich.
The completion of this initiative earlier this year, including the identification of a preferred
development option, represented a significant milestone in the development of “market ready”
employment lands in the East Side. Following its completion, the MESP was endorsed by City
of Cambridge Council and Regional Council in March and April 2014, respectively. The Notice
of Completion was filed jointly with the City of Cambridge according to Class EA requirements
and was made available for a minimum 30 day public review period. Given that no Part II
Orders (“bump up” requests) were submitted as of the review period deadline (June 6, 2014),
the MESP was deemed complete and the Ministry of Environment filed the requisite Notice of
Completion.
The Region is now working with the City of Cambridge to implement the preferred
development option. This includes the City of Cambridge working toward putting in place the
necessary amendments to its Official Plan, Zoning By-law and Development Charges By-law.
Special Purpose Corporation
As part of the original 2013 MGP Study, it was also recommended that the creation of a
Special Purpose Corporation (SPC) be considered for the purchase, holding and sale of
strategic employment lands in Waterloo Region. Staff will continue to evaluate the advantages
and disadvantages of such a model in the context of the evolving regional economic
development framework (including the implementation of a new WREDS and WREDC).
Consultation/Coordination
The ongoing collaboration related to economic development within Waterloo Region continues
in partnership with the Region, the Area Municipalities and Canada’s Technology Triangle Inc.
The preparation of the Economic Development Strategy as well as the development of the
recommendations related to the new regional economic development corporation has been
done in consultation with these partners. Further, all recommendations resulting from the work
will be forwarded to all Municipal Councils for consideration.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Community Context /Economic Realities and Resilience:
“Although Kitchener remains one of the leading engines helping to fuel Ontario’s Golden
Horseshoe, it is undeniable that our economic landscape has shifted – and continues to do so.
In the wake of the recent global financial crisis, municipal governments are faced with the
challenges of an uncertain economy and increased demand for accountability. This emphasis
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on fiscal responsibility and efficiency requires us to be creative, to develop new and innovative
approaches, and to find and cultivate new opportunities.”
Effective and Efficient Government:
“City staff are continuously looking for and finding means to promote more effective services in
the most efficient manner possible.”
Organizational Governance, Innovation and incubation:
“As innovators in public service, we are always looking ahead, always seeking.”
FINANCIAL IMPLICATIONS:
The funding required for the preparation of the Waterloo Region Economic Development
Strategy was $183,000 plus applicable taxes. Total funding was cost-shared among the
Region and Area Municipal Partners. The City’s portion of the costs was approximately
$24,000 and was accommodated within existing budgets in Economic Development and
CAO’s Office in 2013 and 2014.
COMMUNITY ENGAGEMENT:
INFORM – This report is being circulated to members of the City’s Economic Development
Advisory Committee for their information. The report has been posted to the City’s website
with the agenda in advance of the August 11 standing committee meeting.
REVIEWED BY:
Rod Regier, Executive Director, Economic Development
ACKNOWLEDGED BY:
Jeff Willmer, Chief Administrative Officer
Attachment 1 – WREDS Advisory Committee Membership
Attachment 2 – Memo dated July 8 2014 from Lee Parsons, Malone Given Parsons Ltd.: “An
outline of the Waterloo Region Economic Development Strategy (WREDS) -
Strategic Directions”
Attachment 3 – Memo dated July 2014 from WREDS Steering Committee: “Developing a New
Organization for Regional Economic Development”
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Attachment 1- WREDS Advisory Committee Membership
Bruce Gordon Chairman Manulife Canada, Manulife Bank, Manulife
Trust
Carol Leaman President & CEO Axonify
Carol Simpson Executive Director Workforce Planning Board of Waterloo
Wellington Dufferin
Craig Beattie Partner Perimeter Development Corporation
Ed Roberts President Conestoga-Rovers & Associates (CRA)
Gerry Remers President & COO Christie Digital Systems Canada, Inc.
Greg Durocher President & CEO Cambridge Chamber of Commerce
Ian McLean President/CEO Greater Kitchener Waterloo Chamber of
Commerce
Iain Klugman President & CEO Communitech
Kevin Martin President Martin’s Family Fruit Farm
Malcolm Matheson President Steed and Evans Limited
Mark Derro Dean Conestoga College
Mary D’Alton President & Waterloo Inn and Conference Hotel
Managing Director
MichaelChief Operating Perimeter Institute
Duschenes Officer
Michael Pley Chief Executive COM DEV International Ltd.
Officer
Tim Jackson Senior Advisor MaRS Centre for Impact Investing
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Attachment 2 – Memo: Outline of the WREDS Strategic Directions
MEMORANDUM
TO:Waterloo Region Area Municipal Councils
FROM:Lee Parsons (lparsons@mgp.ca)
DATE: July 8, 2014
SUBJECT: An outline of the Waterloo Region Economic Development Strategy (WREDS) –
Strategic Directions
This memorandum provides an overview of the Strategic Directions that have been developed by Malone
Given Parsons Ltd. (MGP), the Steering Committee, Advisory Committee, Canada’s Technology
Triangle Inc. (CTT), senior economic development staff from all eight municipalities, the many
stakeholders who participated in the economic development workshops, and comments by the public.
It should be stressed that this Economic Development Strategy encompasses the entire geography of
Waterloo Region. It is intended, in part, as a means of aligning the efforts of all eight municipalities to
achieve the common purpose of ensuring the continued prosperity of the region.
1.IntroductionaStrategyforWaterlooRegion
Strategy is about making the choices and carrying out the actions that are necessary to achieve a winning
aspiration. Strategy is about coordinating and amplifying the actions of many to achieve a common vision
that benefits all.
Waterloo Region, like all economic regions, is a complex ecosystem where shared geography, history and
shared values results in an inevitable partnership and common cause, among all of the communities,
people, and organizations. Unlike a corporate entity where growth, competitive advantage, risk mitigation
and profit maximization are primary objectives, an economic region is far more complex. The geography
encompasses many corporate, institutional and political entities each with their own visions and
strategies, all of which defy simple attempts to create or form alignment of the means and ends of
strategy. Political necessity helps to align strategic directions – but only to a point.
As politically distinct geographies grow and press on each other and compete for jobs, people and
resources, difference and political rivalries can easily become fault lines in a regional context. However,
as the economic region grows, the benefits of political alignment and coherence ultimately come to
outweigh the legacy differentiation and history.
Economic development strategy is where history and diversity are celebrated as long as it strengthens the
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overall ecosystem and as long as it helps to focus competitive energies against other geographies and
external entities rather than be diverted to unproductive internecine competition that weakens the whole
region as well as individual parts.
Strategy therefore explicitly recognizes the essential imperative for cooperation, making common
choices, and embarking on actions that will strengthen the economic region. Strategy articulates the
collective value proposition to which all are committed.
Strategy is about shared priorities, collective choices, and the alignment of actions that are necessary to
improve the economy and ensure a continually improving quality of life that celebrates uniqueness and
diversity within a common cause.
Waterloo Region faces the opportunities and challenges of success. The region is well recognized for its
history of hard work, collaboration, innovation, and entrepreneurship. This lens has focused the efforts of
companies, educational institutions, local municipalities and the people of Waterloo Region. Waterloo
Region is not at a crossroads or an inflection point that calls for a radical change. However, it faces
competitive challenges that require a renewed consensus on its economic future and to ensure that
Waterloo Region stays on the leading edge.
2.WREDSProcess&Approach
TheProcess
The Region of Waterloo, together with the 7 Area Municipalities, engaged Malone Given Parsons Ltd.
(MGP) to undertake the development of a new Regional Economic Development Strategy. The project
follows a regional economic development study completed by MGP in April, 2013 and is being led by a
Steering Committee comprised of the CAOs of the 8 Municipalities, and the CEO of CTT.
The Strategy has been structured as a four phase approach that is built around a comprehensive economic
development and business community stakeholder engagement program, designed to be focused,
efficient, effective and motivating:
1.Foundations, facts and analysis;
2.Strategic Directions – Vision, Goals and Objectives;
3.Actions;
4.Strategy Document and Approval.
The Strategy process is designed to address short to long term priorities, to address the need for
measuring progress, and to identify partnerships and resources required for the Strategy’s implementation.
The resulting Strategy will serve as a cohesive strategic framework that is both inspirational and practical,
it will become a document from which Area Municipalities and economic development partners can
develop and update their individual economic development strategies where required.
AConsultativeApproach
The Consultant and Steering Committee recognized the wealth of knowledge, expertise and commitment
to regional economic growth that exists among the business community and economic development
partners across Waterloo Region. As such the approach to the development of the Strategy has and
continues to have a strong emphasis on consultation.
The result is a Strategy that mirrors the strengths, issues and aspirations that exist within the region. The
Strategy is a document that has clear goals, objectives and actions that have been created by the many
participants involved. It is this broad consultative approach that will be the foundation to ensuring that
there is buy-in to the Strategy.
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A voluntary Advisory Committee was established, comprised of individuals who are knowledgeable
regarding the local economy, to provide:
Comments, interpretation and information on Strategic Directions & Actions to ensure that the
Steering Committee and Consulting Team are considering all issues and that they are appropriate;
An external perspective on opportunities for Waterloo Region within the global context; and,
Strategic advice and guidance to the project team, Steering Committee and Regional and Area
Municipal Councils via the Steering Committee.
The Advisory Committee have been consulted with and engaged throughout the process and have added
significantly to the development of the Strategic Directions. More importantly, their involvement and
support of the process and outcomes to-date are reassurance that the adopted approach has been
successful in engaging the private sector. This will lead the way to a continued strengthening of
collaboration between the private and public sectors in terms of economic development related activities.
The CTT Board has been actively involved and has made many salient contributions to the definition of
the strategic directions, and has provided input on the importance of foreign direct investment. The CTT
Board has also provided advice on emerging economic opportunities and strategic priorities.
A series of nine Stakeholder Workshops were facilitated in February 2014: to inform stakeholders of the
process and objectives; to discuss the needs, barriers and areas of priority for each area of economic
interest; to mobilize ideas; and to create a basis of support and consensus around the new Regional
Economic Development Strategy.
A number of major themes emerged from that process:
The challenges and importance of attracting and retaining talent in Waterloo Region;
The need to support existing companies and Small and Medium Enterprises to grow and prosper;
The importance of business attraction and Foreign Direct Investment;
The desire and necessity to improve collaboration and coordination;
The requirement for an organizational framework for regional economic development;
Waterloo Region – A hub of innovation and entrepreneurship;
The unique urban rural dynamic of the region;
Confused branding/messaging;
Excellent educational institutions, providing a pool of talented people;
A strengthening arts, culture, and tourism sector that requires support;
The importance of the urban domain; and
The need to ensure that municipal policies are aligned with and supportive of economic
development.
Regional and Municipal Councils, the CTT board, municipal staff and industry experts, and the public
have also been engaged as part of an ongoing consultation process. Municipal economic development
officers and staff have played a significant role in reviewing and revising the proposed Actions in
particular. A project website was created and an Open House session was held in May 2014 to provide the
public with an opportunity to become aware of and engage in the process.
3.ContextforWREDS
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The Phase 1 Foundations Report provided research for a fact based exercise that defined the context for
economic growth for Waterloo Region. The Foundations Report provided an overview of the salient
economic conditions in Waterloo Region.
There are three main conclusions that were drawn from Phase 1 are:
1.Waterloo Region is strong.
The region has long had a successful economy that has grown and prospered by combining a
strong educational and research system with the innovative, collaborative, and entrepreneurial
ethic. This has stimulated strong and diverse companies in the information communication and
technology sectors and in advanced manufacturing and financial services. Many companies and
institutions have a global reach and perspective. These strong sectors are also consistent with an
evident competitive advantage in the global value chain. These advantages are supported by a
high quality of life and distinctive regional character.
2.Waterloo Region’s economic context is changing
However,.
The regional GDP growth is expected to slow over the short term, and to be exceeded by other
Canadian and Ontario cities. While Waterloo Region has enviable success, a strong economic
base, and an attractive location, other areas within the Greater Golden Horseshoe and elsewhere
are competing for the same growth sectors that are represented in Waterloo Region.
3.Waterloo Region can and must respond to the challenge
But. All of the elements that make
the region a powerful economic location are available to attract people, ideas, capital, jobs, and
success. What is required is an assertive, focused, proactive deployment of these assets to meet
the challenge and to ensure a sustainable, high performance region.
TheCaseforaRegionalEconomicDevelopmentStrategy
1.“Change before you have to” – Jack Welch. Waterloo Region can’t rest on its laurels – it needs to
aggressively respond to new opportunities and threats.
2.Waterloo Region is strong in ICT and Advanced Manufacturing but other cities and regions
within the GGH and elsewhere are targeting the same sectors. None of these locations have
exactly the same strengths as Waterloo Region, but some have other strengths (e.g. Markham,
Mississauga, Toronto)
3.The growth of the region, and expansion of available services, facilities, recreational,
entertainment and cultural opportunities, is important in order to keep the talent pool in Waterloo
Region and to attract new talent.
4.Economic Development as currently delivered in Waterloo Region is not as strategic or as
focused as it should be.
5.Although the mantra is collaboration, and the folklore is barn-raising, the reality is that the layers
of government make economic development activities challenging to manage, coordinate and
deliver.
6.As the direct competitive influence of the GTA becomes more pronounced, Waterloo Region
needs to be proactive, not reactive.
4.WREDS TheStrategicFramework
The Waterloo Region Economic Development Strategy will:
Define a region-wide focus for economic development;
Address short to long term priorities;
Identify partners and resources required for the Strategy’s implementation;
Develop techniques for measuring progress; and
Provide a strategic framework from which the Region, Area Municipalities and other partners can
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develop and update their individual strategies.
There are five components of the strategy:
First a Vision Statement that best reflects the collective winning aspiration of Waterloo Region’s
eight municipalities, institutions, and private companies.
Second, a set of Strategic Goals that provide direction to the Economic Development Strategy and
which broadly define the essential priorities.
Third, the Strategic Objectives that need to be achieved to move toward the strategic goals
Fourth, a defined suite of key Actions that is required to achieve the Objectives and Strategic
Goals.
Finally, a road map for activating and implementing the WREDS.
5.StrategicDirectionsTheVisionStatement
The development of the Vision Statement, Strategic Goals and Objectives has been the result of an
extensive and comprehensive consultative approach that included:
9 sectoral stakeholder workshops, with over 120 participants;
Regular consultation with the newly establishment Advisory Committee;
Input from the project Steering Committee;
Consultation and input from the board of CTT;
Two meetings of the joined Regional and Municipal Councils;
3 facilitated workshops with municipal staff and economic development practitioners;
An Open House session;
The development, maintenance and monitoring of a project website, which provided the
opportunity for participation and feedback through a feedback form; and
A number of meetings with private business owners.
The Vision Statement
The purpose of a Vision Statement is to present a concise description of the motivating aspiration for
Waterloo Region’s economy. This vision not only describes a strategic direction, but also reflects the
inherent strengths that differentiate Waterloo Region from other regional economies.
Over the course of consultation with many stakeholders in Waterloo Region, there were common themes
that emerged in various contexts. These themes included:
A tradition of collaborative efforts
A tradition of innovation and entrepreneurship
Diversity of philosophy, talent, civic tradition.
As a result of this process, the Vision Statement was defined and has received wide acceptance.
“To be Locally Rooted, Internationally Competitive, and Globally Renowned”
Locally Rooted – to respect, celebrate, and grow from the region’s historical roots as an
industrious, entrepreneurial, creative, collaborative, problem solving community.
The residents of Waterloo Region are rightfully proud of its tradition of collaboration, innovation,
entrepreneurship, and resilience. Waterloo Region has a tradition of economic success that is
based on these traditions. Its future is rooted in these long established values.
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Internationally Competitive – to build on and complement the strong economic sectors within
Waterloo Region.
Waterloo Region is not only locally rooted, but also outward looking. Its companies and
institutions play in an international field and are successful because their ideas, services and
products compete successfully. Waterloo Region is mindful that it is essential to continually
improve its competitive edge as a place to live and to locate business. Being innovative,
entrepreneurial and internationally competitive brings global awareness of Waterloo Region. The
global brand of Waterloo Region is being continually enhanced through the development of
international relationships.
Globally Renowned – to become a region with instant recognition, synonymous with excellence,
a desired location with world-class attributes.
The vision statement reflects a positive and proactive aspiration to enhance Waterloo Region’s
global reputation, to focus on and communicate its competitive advantage, to always remember
that sustainable success begins at home and is rooted in the values and hard work that have
always made the region internationally competitive and globally renowned.
6.StrategicDirectionsGoalsandObjectives
Four Strategic Goals have been identified that are the guiding principles to fulfilling the Vision for
Waterloo Region. Each Goal is supported by a specific set of objectives.
Goal1Tobethepremierlocationforinnovationandentrepreneurship.
:
Waterloo Region has a strong successful economy that has been built on a tradition of innovation and
entrepreneurship. A number of sectors including the information, communication and technology sector,
advanced manufacturing and financial services sectors have excelled as a result. The combination of new
ideas and new technologies to form new products and services has been a fundamental generator of
economic success for Waterloo Region. The new strategy for expanding the economy must include a
strong and continued commitment to being a high performance region which is on the cutting edge for
creating and deploying new technologies. This strategic goal is realized by achieving the following
objectives.
Goal1:Objectives
1.1To continue to expand the universities and college role in innovation and entrepreneurship.
1.2To strengthen the culture of innovation within existing businesses and organizations.
1.3To attract new high quality, promising, innovative organizations and businesses.
1.4To establish aggressive targets for expanding existing business, attracting new businesses, and
start- ups.
1.5To promote international recognition as a world class community.
Goal2:Tobethemostcompetitivelocationfornewandexpandingcompaniesand
institutions.
Waterloo Region needs to continually sharpen its competitive edge in order to be the most appealing
region for attracting and retaining companies and institutions. It must continue to be a fertile ground for
creative institutions and profitable enterprise. This means ensuring that the inputs that are essential for
each type of organization are available at higher quality and at appropriate cost. This means land and
locations are available, that a talented and dedicated labour force is available. This means proactive and
effective decision making and a “can-do” philosophy within the local private and public sectors.
The set of criteria sought by different companies and institutions will be very different from one to the
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other. In order to become the most competitive location, the challenge for Waterloo Region is to identify
these deciding factors and to outperform other regions on as many of them as possible as guided by the
strategic goals.
Crucial to achieving this will be a new regional approach to business retention and attraction, and an easy
and professional path though the bureaucratic system. It will require the provision of readily available
employment land, excellent infrastructure and transportation system, available talent, and diverse cultural,
entertainment and recreational opportunities.
Goal2:Objectives
2.1 To communicate a compelling value proposition to foreign and domestic companies and
institutions.
2.2 To ensure that a continuous supply of diverse locations are always immediately available for new
businesses, and to support the retention of existing businesses.
2.3To ensure competitive costs of location, attracting talent, and doing business.
2.4To make full use of all relevant programs available from other levels of government.
2.5To ensure fast and effective municipal decision making.
.
2.6To create the most efficient transportation system to link people to companies and institutions
2.7To ensure that all local infrastructure is sufficient to meet the needs of the region.
Goal3:Tobearesilient,engaged,anddynamiceconomicecosystem.
Waterloo Region’s economic ecosystem is dynamic and encompasses many themes and mutually
supportive components that thrive together with the unique environment of innovation and
entrepreneurship.
One of the components is the high growth technology sector where the barriers to entry can be low, the
rewards can be sustainable, yet there is an inherent volatility. The high growth technology sector often
leads the economic narrative and image of Waterloo Region.
The regional economic ecosystem also includes the stalwart sectors such as manufacturing. Unlike other
regions in Canada, manufacturing still represents the single largest source of employment.
Another stalwart is the financial sector, which has been long established and continues to thrive even as
new technology is changing the nature of the sector’s organizations.
These high growth traditional sustaining sectors are supported by a full spectrum of personal service,
business service, and government.
The educational institutions and the research organizations are not only generators of innovation and
talent; they are also major employers in their own right, and play a significant role in positioning
Waterloo Region on the global stage. As they expand their academic and research programs, they
stimulate local employment and productivity, and build on the region’s reputation for education and
research. It is also fitting that education and research are embedded in one of Waterloo Region’s four
economic goals given that investment in research and innovation is one of the strategic actions outlined in
the Government of Canada’s Economic Action Plan 2013.
Agricultural production and food processing are also a defining component of the regional economic
ecosystem. While the supply of agricultural land is finite, the area remains an important location for
agricultural and food processing industries.
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The WREDS must focus on ensuring that this economic ecosystem remains resilient, dynamic and
mutually supportive.
Goal3:Objectives
3.1 To support and stimulate new and existing high growth sectors.
3.2 To support and stimulate strong traditional employment sectors.
3.3To ensure robust service sectors that support a healthy, growing economy.
3.4To nurture small and medium sized enterprise (SME).
3.5 To leverage the region’s post-secondary institutions to the fullest extent.
3.6 To support the continued expansion of the agriculture and agri-food sectors.
Goal 4: To be a community of choice for talented people.
Economic growth and sustainability is all about the people who continue to choose Waterloo region as a
place to live, learn, work, and have families. It is the sense of place, of history, of having a unique
character that is the bedrock to Waterloo Region. It is the culture of creative and diverse “do-ers” that
seek a high quality of life in a unique multifaceted environment that is at once big city, urban, small town,
rural, and university town.
Goal 4 explicitly recognizes the need to continue to nurture the quality of life and unique character of
Waterloo Region that attracts people and organizations.
Goal4:Objectives
4.1To become recognized as a major location for art and culture.
4.2To create a green, sustainable, efficient region that promotes and facilitates growth.
4.3To ensure an appropriate mix of housing that reflects the needs and aspirations of current and future
residents.
4.4To promote and support excellent education.
4.5To support excellent healthcare and supporting organizations.
4.6To enhance the unique sense of place and maintain the urban and rural qualities.
4.7To support a dynamic and caring not-for-profit sector.
7.DefiningtheActions
The Waterloo Region Economic Development Strategy will require specific Actions to achieve the
Strategic Direction. The final set of Actions will ultimately become the work plan for the new Waterloo
Region Economic Development Corporation in partnership with the eight municipalities, the institutions
and corporate organizations.
A preliminary set of Actions have been defined through workshops and discussions with economic
development staff and practitioners from within Waterloo Region.
The preliminary Actions can be found on the WREDS project website (www.wreds.ca). The Actions
should be considered as a “work in progress”, which illustrate the proposed approach to implementing the
Waterloo Region Economic Development Strategy.
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Attachment3Memo:DevelopingaNewOrganizationforRegionalEconomicDevelopment
Memorandum
To: Regional and Area Municipal Councils
From: WREDS Steering Committee
Developing a New Organization for Regional Economic Development
Subject:
___________________________________________________________________
1. Background
In 2012, the Region of Waterloo and all seven Area Municipalities commenced a study
entitled the “Waterloo Region Economic Development Study: Assessment of Economic
Development Services and the Provision of Employment Lands” to examine both the
municipal delivery of economic development services and issues around the adequate
supply of employment lands. This study acknowledged there were a wide variety of
activities across the region that support economic development. However, the report
also recognized that a more coordinated approach to economic development in the
Waterloo Region was required. The results of this study were presented at an All
Council meeting and were subsequently endorsed by each of the municipal councils
throughout 2013.
Despite many strengths, there are a number of weaknesses in the current economic
development framework indicating that the current system is not fully meeting the needs
of the regional economy:
Absence of a regional approach to economic development;
A gap in available data;
Inconsistent marketing approach;
A lack of resources, particularly in the rural municipalities;
Trust issues; and,
An unclear understanding of stakeholder involvement in economic development.
From Waterloo Region Economic Development Study:
Assessment of Economic Development Services and the Provision of Employment Lands (2013)
Several action items resulted from this study, including:
The creation of a Waterloo Region Economic Development Strategy (currently in
progress);
The creation of a new Region of Waterloo Office of Economic Development
(complete);
A Request to amend the Municipal Act, 2001 to allow for regional participation in
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employment land development (request made to Province);
Completion of the East Side Master Environmental Servicing Plan (MESP) to
advance the development of employment lands (complete); and
The evaluation of options for a new Waterloo Region Economic Development
Corporation (subject of this memo).
Throughout the early part of 2014, the Waterloo Region Economic Development
Strategy Steering Committee (consisting of the municipal CAOs in Waterloo Region and
the CEO of CTT Inc.) evaluated options in order to identify a recommended structure
and governance model for a new Waterloo Region Economic Development Corporation
(WREDC). In addition, there has been good progress on identifying and clarifying the
respective roles and responsibilities of the new WREDC, the Region of Waterloo and all
seven area municipalities.
The purpose of this memo is to summarize the recommendations that the
Steering Committee has developed to date, to highlight issues that still require
consideration, and to identify expected next steps.
2. Structure and Governance
a) Structure
In creating a new Regional Economic Development entity, three alternative approaches
to the structure of the new organization were considered:
1. An arms-length Economic Development Corporation;
2. An arms-length Public –Private Partnership; and
3. An arms-length Regional Development Authority.
The rationale for creating an arms-length entity has the following benefits:
Considered a more “apolitical” mandate;
Less bureaucracy in terms of program delivery and decision making;
Greater opportunity to attract key community leadership across many sectors to
the Board and staff;
Greater opportunity to develop partnerships and bundle government programs
to achieve an end;
Greater opportunity to be considered regional in scope and actions;
Board Chair and/or CEO have the ability to speak on behalf of the organization
and to represent regional thought on pertinent or potentially divisive issues; and
Ability to be an advocate with all levels of government.
A Public-Private Partnership model was reviewed, but found less desirable, particularly
since stakeholders and funders give up direct control, and priorities may diverge.
A Regional Development authority model was also reviewed, but not a desirable fit,
primarily due to the structure being outside the direct purview of any level of
government, particularly the shareholders.
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Regional Economic Development Corporation (Recommended)
Based on the review of several options, it is recommended that a new Waterloo Region
Economic Development Corporation (WREDC) be established. There are several
benefits to this approach, including that the new entity would provide:
An expanded mandate for economic development on a region-wide basis;
A mechanism to address some of the gaps and challenges that have been
identified with the current economic development framework;
One primary point of contact for regional scale economic development activities;
An opportunity to align and coordinate region-wide strategic directions,
objectives, resources and initiatives; and
A role in supporting and strengthening collaboration and communication with all
stakeholders.
In addition, an independent or arms-length regional economic development corporation
is a model that is widely used in a Canadian context. Its history goes back several
decades, and there have been refinements and adjustments to suit local conditions.
The main features of this type of organization are:
"Arms-length", not-for-profit corporation;
Accountable to key "shareholders" (primarily the Region and Area Municipalities);
Governed by a Board of Directors (responsible for oversight and direction,
including hiring and management of CEO);
Reports progress on deliverables to the stakeholders on an agreed upon, usually
annual, timeframe.
There are a number of examples of Regional Economic Development Corporations that
can be referenced. For an example of these, please see Attachments A and B.
b) Governance
Establishing a relevant and sustainable governance model will be critical to the overall
success and effectiveness of a new Waterloo Regional Economic Development
Corporation (WREDC). The primary shareholders of the new WREDC will be the
Region and the Area Municipalities, as they are expected to be the principal funders.
The proposed governance structure outlined below is based on the typical approach
employed by many other Economic Development Corporations. It includes a number of
supporting groups, all with specific mandates and roles but led by the Board of
Directors.
WREDC Board of Directors: A Skills-Based Model (Recommended)
The Board of Directors is the primary oversight provider for the organization. While it will
seek valuable input and insights from the funding partners, possibly from one or more
Advisory Committees and the greater community, it holds the responsibility for ensuring
best practices in terms of governance. The Board functions would include direction
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setting, strategic planning, monitoring performance, financial oversight, hiring of the
CEO and empowering and holding the CEO accountable for achieving desired results.
A Board size of 9 to 12 members is felt to be a workable number and is recommended.
It is also recommended that the Board be a “skills-based” board, rather than a board
that includes representatives from specific organizations, or individuals who hold
specific positions. It will be important to ensure that the Board has:
An appropriate range and mix of skills;
Individuals from a cross-section of various sectors of the Region’s economy;
Individuals from a variety of geographic areas/municipalities within the Region.
Given these broad criteria, it is anticipated that the majority of the Board members will
be individuals working in the private sector.
A skills-based Board has the greatest ability to be a high functioning Board. Developing
the criteria regarding desired skill sets will be important, but there are several skills that
would typically stand out. Having members with specific strengths in the understanding
and operations of finance, marketing, law, governance, and business development
would be a few of these skills. In the end, it is important to have people with the
following attributes as well:
Be recognized as a leader within their profession or industry, and by extension a
“community leader”;
Have a strong understanding and experience in and on Boards of Directors;
Have a strong understanding of the Waterloo Region; its economy, its strengths
and challenges and an ability to be a critical thinker in terms of approaches to
raise the region’s economy and profile;
Be a team player; and
Be a consensus builder.
Ultimately, the skills, experience, contacts and attitude/approach of the board members
will be critical to the organizations success. This will be more important than the
organization or sector that they work within and the specific community within the region
that they live or work in. Ideally, there will be a Board that is a good representation of
the region’s geography, and its sectors, but key is finding the people with the critical skill
sets.
Steering Committee (Economic Development Implementation Committee)
A Steering Committee of the municipal CAOs and the CEO of CTT has been
established in order to provide direction and oversight to the Waterloo Region Economic
Development Strategy (WREDS), currently underway. This group is responsible for
bringing any resulting recommendations to their respective Councils for direction and
carry through, and it should be maintained in some form.
Building on the existing framework, it may be appropriate that this Steering Committee
evolve into the Economic Development Implementation Committee for the creation of
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the new Regional Economic Development Corporation. Key responsibilities could
include:
Developing skills criteria for Board of Directors (with input from WREDS Advisory
Committee);
Soliciting and vetting of nominations for the Board of Directors;
Supporting the Nominating (Selection) Committee as needed (see below
regarding Nominating Committee);
Working with the newly formed Board on Corporate letters patent (articles of
incorporation), operational protocol and budgeting; and
Effective liaison with all municipal Councils until such time as the new
Corporation is well enough established to liaise on its own.
Following the establishment of the Board of Directors, it is anticipated that the
relationship between the Implementation Committee and the new WREDC could evolve.
For example, the Implementation Committee could be expanded to include other
leaders within the local economic development framework (particularly other associated
implementing organizations). Further, key responsibilities may change to fulfill more of
an advisory/coordination function with the Senior Management team, with a more
focused mandate relating to the alignment and implementation of key deliverables and
the two-way communication with partner organizations (municipal councils, staff, and
other stakeholders). This will allow for a strong connection with the Senior Management
of the various funding partners, critical to ensuring alignment and the strategic
employment of resources related to various economic development initiatives region-
wide.
Nomination/Selection Committee
It is important that the process for the selection of Board members be open, transparent
and credible to both public and private sector stakeholders. This is particularly true for
the initial board to ensure the new organization establishes early credibility. Accordingly,
it is recommended that a Nomination/Selection Committee comprised of public and
private sector leaders be established with the responsibility for appointing members of
the Board of Directors of WREDC.
In particular, this Committee should both provide a linkage between the shareholders,
and bring public and private-sector leaders together. Consequently, it is recommended
that the Nominating Committee be comprised of the Regional Chair, the three City
Mayors, one Township Mayor, and three individuals selected by the WREDS Advisory
Committee. The Nominating Committee is expected to consider candidates that are
identified through an open call for nominations following initial screening by the
Implementation Committee.
A Nomination/Selection Committee structured in this way would provide an appropriate
linkage between WREDC and the Region and Area Municipalities, who will provide
most of the initial funding for the organization. It will ensure that perspectives of the
municipal funders and the private sector are appropriately considered in establishing the
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new Board. It will also provide one accountability mechanism between the municipal
funders and WREDC, without the municipal funders all needing to be represented on
the Board. This should provide an appropriate balance between creating an arms
length, skills-based organization, and maintaining a degree of accountability to the
municipal funders.
Other Potential Committees the Board may wish to consider establishing
There are a variety of supporting committees that the Board may wish to consider
establishing over time. These committees could provide valuable and efficient means of
checking in with people and organizations who are on the “front line” of our economy in
a variety of capacities. However, it should also be made clear that the decision-making
role of the new Regional Economic Development Corporation (relative to its mandate,
and enunciated through such documents as its Letters Patent and strategic plans),
remains with the Board.
Some potential future committees that should be considered include:
Economic Advisory Committee. A committee of high level regional leaders who
can share their influence, wisdom and interest in the regional economy, but are
unable to consider Board membership for a variety of reasons. The Committee
would be expected to meet periodically or on an issue-specific basis;
High Value Sector Committees. One or more committees could be established
to discuss sector-specific opportunities or challenges on an as-needed basis, or
on an ongoing basis (e.g. to monitor some of our key economic sectors); and
Municipal Liaison Committee.
3. Roles and Responsibilities
It is recognized that there are many key players (private, public and not-for-profit) that
make up the overall economic development framework or “ecosystem”. While the new
Waterloo Region Economic Development Corporation will be a key player, it will not be
the only entity responsible for the delivery of a wide range of related services. Further,
it is recognized that in order to foster long term, successful economic development in
the region, it will be important to ensure that five key activity areas (or pillars) are
appropriately addressed collectively by all service providers. The pillars are:
1. Excellence in creating an entrepreneurial culture;
2. Excellence in business retention and expansion;
3. Excellence in investment attraction;
4. Excellence in marketing and communication; and
5. Excellence in community capacity building.
For more information on these five pillars, please see Attachment C.
The following outlines the proposed roles and responsibilities of key public organizations,
at least at the outset. Further refinement of these roles is anticipated to occur during the
more detailed implementation and transition planning in the Fall of 2014.
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Waterloo Regional Economic Development Corporation
As the primary “voice” and face of Economic Development in Waterloo Region, it is
proposed that the WREDC will take on a variety of functions that are best done at a
regional level such as:
Overall management of the regional economic development strategic plan and
coordination with other stakeholders;
Investment attraction to Waterloo Region – including building a strong case
(value proposition) for investing in the region’s key growth industries;
Liaison with Provincial and Federal government efforts to attract industry and
grow key sectors of the economy;
Collaboration with other economic jurisdictions for the broader promotion of
Waterloo Region;
Marketing and promotion of the region;
Key business sector development activities;
Talent development and people attraction (working with partners);
Data and research to support regional economic development activities; and
Coordination of area municipal efforts in retaining and supporting the expansion
of “regional scale” businesses.
Area Municipalities (Economic Development)
The Area Municipalities (cities and townships) will continue to play an integral part in the
delivery of local economic development services. Below is a sample of the key roles
they will continue to undertake:
Community promotion;
Land and real estate development;
Point of contact for business into Area Municipal government (zoning, etc.);
Business retention and expansion activities;
Investment attraction and collaboration with WREDC;
Ensure area municipal government activities are aligned with the Regional
Economic Development Strategy; and
Establish protocol for dealing with investor prospects within the Area Municipal
organization.
Region of Waterloo (Office of Economic Development)
With the establishment of the new Office of Economic Development within the Region of
Waterloo, it will be important to distinguish functions from the WREDC and from the
Area Municipalities. Key functions identified at this point will include:
Data and research support for regional economic development efforts including
key industries (i.e. information and analytics) (this function could ultimately be
assumed by the WREDC);
Develop and maintain an inventory of available land for development/
employment purposes (this function could also be assumed by the WREDC);
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Point of contact for business development inquiries/activities within the Region of
Waterloo (corporately);
Ensure Regional government activities are aligned with the Regional Economic
Development Strategy; and
Establish/coordinate a protocol for dealing with investor prospects within the
Regional organization.
Other key (public-facing) stakeholders in the Waterloo Regional Economic
Development Strategy
There are more than two dozen organizations, from business groups to educational
institutions that have a role to play in the implementation of the Regional Economic
Development Strategy. A key objective is to ensure these stakeholders see themselves
in the plan and hold themselves accountable for their roles and responsibilities as well.
Examples include:
Accelerator Centre® and Communitech: Incubating and supporting tech and high
growth potential entrepreneurs;
Small Business Centres: Providing general small business support and services
and ensuring a thriving small business climate in the region;
Workforce Planning Board of Waterloo Wellington Dufferin: Workforce
development and labour market planning;
Greater Kitchener-Waterloo and Cambridge Chambers of Commerce –
supporting the growth and development of businesses within Waterloo Region.
Post-secondary institutions: University of Waterloo, Wilfrid Laurier and
Conestoga College – talent development, research and development, sector
support, etc.
4. Conclusion and Expected Next Steps
Much progress has been made since June 2013 on several key initiatives. In addition, a
collaborative, coordinated and inclusive approach continues to remain the focus of all
the work underway. Establishing a new framework for economic development
represents a significant change – the need to plan for and facilitate a smooth transition
is a key priority. To this end, staff will continue to develop the various implementation
components of the WREDS and WREDC (including transition strategy and funding/
budget implications) for future consideration and decision by Municipal Councils.
Throughout this period, it is expected that Canada’s Technology Triangle Inc. will
continue to operate throughout the planning and set-up phase of the new WREDC
(2014-2015). Further, it is recognized that there is an opportunity to merge key assets
with the new WREDC, building on the strength and expertise that already exists and to
maintain momentum. It is anticipated that the new WREDC will be fully functional by
January 1, 2016.
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Next Steps
There are several next steps that will move this work forward. They include:
Completing the Waterloo Region Economic Development Strategy and refining
the associated Action Plan;
Developing a comprehensive Implementation/Transition Plan (Fall 2014);
Presenting final recommendations for Municipal Council decision/ coordinated
with 2015 Budget Process (Q1 2015);
WREDC Establishment/ WREDS Implementation (2015); and
New WREDC fully operational by January 1, 2016.
Attachments:
AttachmentAEconomicDevelopmentCorporationExamples
AttachmentBSummaryoffindings:ReviewofCanadianEconomicDevelopmentEntities
AttachmentCFivePillarsofEconomicDevelopment
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Attachment A - Economic Development Corporation Examples
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Attachment B - Summary of findings: Review of Canadian Economic
Development Entities
The vast majority of jurisdictions in Canada with at least 50,000 residents have a
regional agency overseeing economic development. St. John’s and Charlottetown
are notable exceptions but as they are the dominant urban centres, provincial
economic development efforts are centred on them.
In most cases, the municipalities involved in the regional development agency
o
also have internal economic development staff as well but there is a clear
delineation of roles between the city and regional agencies.
The Boards of Directors include business leaders and representatives from key
public institutions such as universities. Half of the organizations have some
government representation on the board of directors. Several boards have mayors
and councillors directly on the board of directors and two others have ex officio
representation from City Hall.
70 percent these agencies are relying on private sector funding for at least a portion
of their annual operating budget.
Municipal governments are the core funders of the regional agencies accounting for
between 40% and 80% of annual funding.
All of the agencies have a mandate to attract industry and investment to their region.
A majority have initiatives related to people attract and talent retention.
Around half of the regional economic development agencies have small business
counselling and support services. In the other half of the jurisdictions reviewed
small business counselling and support services are offered by another government
funded organization or organizations.
Most are involved in targeted sector development efforts.
All provide promotional materials and marketing for the region.
The majority provide some form of economic scorecard on regional economic
performance.
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Attachment C – Five Pillars of Economic Development
Creating and nurturing an entrepreneurial culture:
1. those activities within the
region that acknowledge the contribution that small business has on the health and
welfare of the Waterloo region. This is an historical fact and must be fostered to
ensure a healthy mix of a variety of home grown business and to assist with youth
retention.
Retention:
2.The majority of jobs in any region are dependent upon local business
growing and flourishing by establishing new markets, enhanced productivity,
marketing and leveraging their abilities. It is easier, more cost effective and more
sustainable to assist and grow our existing base than to attract new investment into
the region.
Investment attraction
3.: continues to be an important means to grow a regional
economy and while its numbers will not match that of growth in our local business
base, it is critical to have a robust approach in place centred on business attraction.
With it comes new skills, new markets, and new opportunities and enhanced
creativity, and strengthens our region’s international status.
Marketing
4.: of the region to our internal residents and businesses as well as to the
world is essential to position the community as a great place to live, work and invest
in. This is an area that requires significant and somewhat immediate attention.
community
5. The final but in many ways the largest pillar of economic development is
capacity building
or ensuring that the human resources, services and infrastructure
align and lift the other four pillars. Land development, partnerships with post
secondary education facilities, health care, transportation infrastructure and strategic
planning are some of the key elements of this pillar.
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