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HomeMy WebLinkAboutCAO-15-008 - Strengthening Our Economy - Waterloo Region Economic Development Implementation UpdateKITC HI , -Ni-,R Staff Report CA0 Office www.kitchener ca REPORT TO: Committee of the Whole DATE OF MEETING: February 9, 2015 SUBMITTED BY: Jeff Willmer, Chief Administrative Officer, 519.741.2200 x7350 PREPARED BY: Regional Economic Development Steering Committee WARD (S) INVOLVED: All DATE OF REPORT: February 2, 2015 REPORT NO.: CAO -15 -008 SUBJECT: Strengthening Our Economy — Waterloo Region Economic Development Implementation Update RECOMMENDATION: That the first Waterloo Regional Economic Development Strategy, dated December 2014, and as described in Report CAO -15 -008, be approved in partnership with all other Area Municipalities and the Regional Municipality of Waterloo; and, That staff be directed to implement and promote the Waterloo Regional Economic Development Strategy in support of existing economic prosperity and as a means of attracting new investment; and, That the framework and financial model, including the City of Kitchener's four -year financial commitment (as outlined in table 1), for a new Waterloo Region Economic Development Corporation (WREDC) be approved as described in Report CAO -15 -008, subject to approval of the 2015 budget; and, That the Mayor and Clerk be authorized to enter into such agreements as necessary to implement the WREDC, with such agreements to be satisfactory to the City Solicitor; and further, That the members of the Economic Development Advisory Committee be thanked for the time and expertise they dedicated to advancing these new economic development initiatives in the interest of further supporting the regional economy and broader community prosperity. EXECUTIVE SUMMARY: In 2012, the Region of Waterloo and all seven Area Municipalities jointly commissioned a study by Malone Given Parsons Ltd. to look at the efficiency and effectiveness of economic development delivery in Waterloo Region. The Study, completed in April 2013, recommended a new approach to the delivery of economic development services throughout the region. The key recommendations included creating the first ever Waterloo Region Economic Development 3. -1 Strategy (the Strategy) and launching a new Waterloo Region Economic Development Corporation (WREDC). The Region and all seven Area Municipal Councils endorsed these recommendations in principle. A Steering Committee, consisting of the CAOs of the Area Municipalities and the Region, as well as the CEO of Canada's Technology Triangle Inc. (CTT), was established to oversee the development of the region -wide Economic Development Strategy and to investigate options for the new Economic Development Corporation. To support the Steering Committee, a Task Force was established comprised of Regional and Area Municipal economic development staff and a CTT representative. In addition, an Advisory Committee of knowledgeable community leaders from diverse backgrounds was established to provide valuable advice and guidance throughout this process (please see Attachment 1). The Strategy is now complete and has been made available in the Office of the Mayor and council and online at http: / /wreds.ca. The Steering Committee and Advisory Committee have reviewed and endorsed the Strategy and its recommendations. The Strategy's Executive Summary is appended to this report (please see Attachment 2). This is the first time an Economic Development Strategy has been developed to comprehensively support the entire regional economy. The Region and the Area Municipal CAOs would like to thank the Advisory Committee for their support in achieving this significant milestone. The new WREDC is to complement and support, but not duplicate, the collaborative efforts of the Area Municipal and Regional economic development teams. The new WREDC would assume a variety of economic development functions at a region -wide scale and be governed by a Board of Directors, expected to be 9 to 12 members. The Board of Directors is to be skills -based and provide governance, strategic direction, and organizational oversight to the Chief Executive Officer (CEO) of the new WREDC. The Region and Area Municipalities expect a wide range of benefits for their investment in the new WREDC, including access to new marketing and communication material, new capacity to promote investment in infrastructure, services and business, as well as new resources to identify and support strategic growth sectors (please see Attachment 4). This report also provides updates on other recommendations from the 2013 Study, which include: • Launching a new Region of Waterloo Office of Economic Development; • Preparing the East Side Strategic Employment Lands in Cambridge for new development opportunities; • Requesting that the Province of Ontario further amend the Municipal Act to add the Regional Municipality of Waterloo to the list of Upper -tier Municipalities that are assigned authority to acquire, develop, and dispose of sites for industrial, commercial and institutional uses; and 3. -2 • Investigating a Special Purpose Corporation to purchase, hold and dispose of strategic employment lands in Waterloo region. BACKGROUND: In 2012, the Region of Waterloo and all seven Area Municipalities jointly commissioned a study led by all eight Chief Administrative Officers to look at the efficiency and effectiveness of economic development delivery 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" (the Study) in April 2013. The results of the Study were presented at an All Council meeting on May 2, 2013 and the recommendations formally approved by Kitchener Council (as described in staff report CAO -13 -017 dated May 27, 2013). Regional Council and each of the other Area Municipal Councils also endorsed the Study in May and June 2013. The joint Study recommended 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- 1 . Creating a Waterloo Region Economic Development Strategy; 2. Advancing a new Waterloo Region Economic Development Corporation; 3. Preparing the East Side Strategic Employment Lands in Cambridge for new development opportunities; 4. Requesting that the Province of Ontario further amend the Municipal Act to add the Regional Municipality of Waterloo to the list of Upper -tier Municipalities that are assigned authority to acquire, develop, and dispose of sites for industrial, commercial and institutional uses; and 5. Investigating a Special Purpose Corporation to purchase, hold and dispose of strategic employment lands in Waterloo region. A Steering Committee was established, consisting of the CAOs of all of the Area Municipalities and the Region, as well as the CEO of Canada's Technology Triangle Inc. (CTT), to oversee the creation of the region -wide Economic Development Strategy and to investigate options for a new Economic Development Corporation. To support the Steering Committee, a Task Force comprised of Regional and Area Municipal economic development staff, and a CTT representative, was established to implement the study's recommendations and to define the specific roles and responsibilities of the WREDC, the Area Municipalities, the Region, and other partner organizations. In addition, an Advisory Committee of knowledgeable community leaders from diverse backgrounds was established to provide valuable advice and guidance. .throughout this process. The membership of the Advisory Committee is listed in Attachment 1. REPORT: This report provides an update on progress to date, and recommends a series of actions to 3. -3 implement the broader direction previously given by Regional Council and all Area Municipal Councils. 1. Creation of a Waterloo Region Economic Development Strategy (the Strategy) In August 2014, the Waterloo Region Economic Development Strategy was endorsed in principle by Regional Council and all Area Municipal Councils, and their respective staff were given direction to develop a detailed implementation plan for consideration (please see Report CAO -14 -037 dated August 11, 2014). The Strategy is now complete and has been made available in the Office of the Mayor and Council and online at http:ffwreds.ca. The Steering Committee and Advisory Committee have both reviewed and endorsed the Strategy and its recommendations, which are summarized in the Executive Summary included in Attachment 2. This is the first time a region -wide Economic Development Strategy has been developed, and its completion achieves one of the primary recommendations from the 2013 Study. The Strategy is a roadmap for all of the Municipalities and a broad range of community stakeholders to cooperatively support the ongoing economic prosperity of Waterloo region. The Strategy's vision is "to be Locally Rooted, Internationally Competitive and Globally Renowned ". The Study's four strategic goals aim to fulfill this vision. They include: Goal 1: To be the premier location for innovation and entrepreneurship. Goal 2: To be the most competitive location for new and expanding companies and institutions. Goal 3: To be a resilient, engaged, and dynamic economic ecosystem. Goal 4: To be a community of choice for talented people. To jointly achieve these Goals, the Strategy identifies twenty -two Strategic Objectives and forty -three specific Actions. The implementation of the various actions will be led by the new Waterloo Region Economic Development Corporation, the Area Municipal economic development offices, and the Region of Waterloo Office of Economic Development (please see Attachment 3 for roles and responsibilities). The Strategy also brings together a wide range of key stakeholders and allied organizations, including both Chambers of Commerce and the small business centres. The successful completion of the Strategy involved the collaborative efforts of the Area Municipalities and Region, as well as extensive community and partner involvement (including CTT and the Chambers of Commerce). These efforts were summarized at the June 19, 2014 All Council Meeting, where Regional and Area Municipal staff, along with Malone Given Parsons Ltd (MGP), presented an overview of the Waterloo Region Economic Development Strategy, which involved: 3. -4 • Regular consultation with CTT and its Board of Directors, the Advisory Committee, as well as Area Municipal economic development staff; • Updates at All Council meetings; • A series of stakeholder sessions; • A project website, which was included in all public documents and advertisements, as well as a link on the Region of Waterloo's website; and • A public Open House held May 15, 2014. The Advisory Committee also dedicated its valuable time and expertise to advancing the new economic development initiatives outlined in the Strategy. Led by Chair Gerry Remers, President and CEO of Christie Digital Systems Canada Inc., the advice of this group was invaluable for guiding the development of the Strategy's proposed directions. 2. Waterloo Region Economic Development Corporation (WREDC) Framework At the June 19, 2014 All Council meeting, the Steering Committee provided an update regarding the proposed new Waterloo Region Economic Development Corporation (WREDC). During the summer of 2014, Regional Council and all Area Municipal Councils formally endorsed the creation of the new arms - length organization in principle, subject to the development of the necessary implementation and transition plans and subsequent Council approvals (please see report CAO -14 -037). The Region of Waterloo and all seven Area Municipalities already make a significant investment in economic development. However, there is broad agreement among all stakeholders that collaboration needs to improve, with a stronger focus on a regional approach to economic development. The region has lost opportunities to attract businesses because of the lack of a region wide focus on economic development. The Strategy identified several economic development service gaps in the current approach, which will be addressed by the WREDC (please see Attachment 3). For example, feedback from the Advisory Committee and other stakeholders indicated that the current economic development brand for the region is confused and there needs to be a more coordinated approach. There are also no regional action plans to help develop key growth sectors, such as Health Science and Pharmaceuticals, Finance and Insurance, and Manufacturing. A high priority for the WREDC is to develop these action plans and to work with its stakeholders to create and implement coordinated marketing and communication plan. The WREDC will also manage the implementation of the Strategy, which involves ongoing coordination with the Region, Area Municipalities and other stakeholders. To accomplish the region -wide goals of the Strategy, and to enhance the collective capacity of economic development efforts in Waterloo region, staff recommend approval of additional resources to support the WREDC. The new organization is to complement and support, and not duplicate, the existing collaborative efforts of the Area Municipal and Regional economic 3. -5 development teams. The Task Force, which includes Regional and Area Municipal economic development staff and a CTT representative, refined a list of specific roles and responsibilities for the WREDC, the Area Municipalities, and the Region, which correspond directly with the Goals and Actions of the Strategy. A summary of these roles and responsibilities are outlined below and are further detailed in Attachment 3 of this report. Benefits of the WREDC The Region and Area Municipalities expect a wide range of benefits for their investment in the new WREDC. These benefits are summarized in the value for money analysis in Attachment 4. The primary benefits include: • Access to new regional marketing and communication material to help attract and retain investment, businesses, and people. • Access to shared data and analysis. • New capacity to promote public and private investment in infrastructure, services, and business. • Third -party resources to support the economic development efforts of the Region and Area Municipalities. • New resources and expertise to help identify and support strategic growth sectors as key regional assets. Roles and Responsibilities a) WREDC The new WREDC is to assume a variety of economic development functions that are best done at a region -wide scale, such as: • Managing the implementation of the Strategy. • Investment attraction to Waterloo Region — including building a strong case (value proposition) for investing in the region's key growth industries. • Liaise 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. • Identify and support key growth sectors. • Talent development and people attraction (working with partners). • Data and research to support region -wide economic development activities. The WREDC will assume the Foreign Direct Investment and investment attraction role currently provided by Canada's Technology Triangle (CTT). After the WREDC is incorporated in 2015, these CTT activities will transition to the new organization in late 2015 /early 2016. The 3. -6 Steering Committee and CTT Board of Directors have developed a transition plan to ensure a smooth transition of these important activities from CTT to the new WREDC. This transition plan was recently supported unanimously by the CTT Board of Directors. b) Area Municipalities The WREDC will complement and support, and not duplicate, the collaborative efforts of the Area Municipal economic development teams. These teams will continue to deliver economic development services at the local level undertaking functions such as, but not limited to: • Business Attraction in collaboration with the WREDC as well as activities deemed necessary to achieve objectives specific to the local municipality. • Marketing and promotion of the local municipality including development and maintenance of data for use in products such as community profiles, promotional materials and newsletters etc. • The Cities will continue the operation of the Waterloo Region Small Business Centres. • Business Retention and Expansion programs which include corporate visitation, issue identification, infrastructure needs assessment, etc. • Work with other municipal departments to drive economic development from all sectors of Municipal services and ensure a supply of redevelopment, intensification and greenfield commercial and industrial opportunities. • Local development incentive programs. • Maintain a network of Federal and Provincial contacts to ensure business support programs and attraction services are available to existing and prospective businesses. • Local brand development in relation to the WREDC brand. c) Region of Waterloo Office of Economic Development (OED) As part of the Region's 2014 organizational review, a new Office of Economic Development (OED) was established effective November 3, 2014. The Manager of Economic Development reports directly to the Commissioner of Planning, Development and Legislative Services. The roles of the OED identified with the assistance of the Task Force include: • Provide data and research support for economic development. • Develop a Central Transit Corridor Investment Strategy in partnership with the Area Municipalities to support employment growth along the ION Rapid Transit corridor (Community Building Strategy — Priority Project 3). • Key growth sector analysis. • Inventory of available urban and greenfield land. • Economic development advocacy within the Region of Waterloo (e.g. promoting as a corporate entity the Region of Waterloo International Airport). • Promote a sustainable rural and urban land use fabric. • Aligning the regional economic development strategy and planning priorities and 3. -7 servicing needs (e.g. advancing the East Side Strategic Employment Lands with the City of Cambridge, which requires Regional infrastructure and could further encourage new aviation - related development). Reporting and Accountability An economic development partnership agreement will be developed to clarify and formalize the relationship between the new WREDC, the Region, and all seven Area Municipalities. It will define the mandate of the new WREDC and detail the roles and responsibilities of each partner, and any advisory or liaison committees. It will identify criteria which will be used to evaluate the new corporation, as well as its communication protocols and expectations for annual reports. It is anticipated that the WREDC will report annually at an All Council Meeting. Individual reports would also be provided to Area Municipal and Regional Councils, upon request The partnership agreement will also include the financial commitments of each municipal partner. New WREDC Board of Directors It is proposed that the Board of Directors of the new WREDC will be a skills -based board consisting of 9 to 12 members. The Board will provide governance, strategic direction, and organizational oversight to the CEO of the new WREDC. The Board would consist primarily of private sector members from a broad cross - section of employment sectors and areas across the region, as discussed in Report CAO -14 -037. A skills -based Board of Directors will be important for the success of the WREDC and the implementation of the new Strategy. The approval in principle by Kitchener Council in report CA -14 -037 identified that a Selection Committee consisting of the Regional Chair, the three City Mayors, one Township Mayor, and several private sector members from the Advisory Committee be responsible for selecting the Board of Directors. A Regional and Area Municipal staff team was formed to support the Selection Committee. Advertising for the Board of Directors began in January 2015. The deadline for applications is February 25, 2015. The Selection Committee will select the members of the Board of Directors in the spring of 2015 and will advise their respective Councils and other stakeholders when the Board of Directors is finalized. The members of the Selection Committee are listed in Attachment 5. Priorities for 2015 There are a number of important actions planned for 2015 to continue implementing the Strategy and to ensure the WREDC is fully operational in 2016. The key milestones are: 1. Appointing the new WREDC Board of Directors. 2. Finalizing Implementation and Transition Plans, including the transition of CTT roles to 3. -8 the WREDC. 3. Incorporating the WREDC. The Region and Area Municipalities have the authority to establish an economic development corporation pursuant to the Municipal Act. 4. Hiring a Chief Executive Officer (CEO). The new Board of Directors, once established, will hire the new CEO. The CEO would then be responsible for hiring the remaining staff complement. 5. Implementing the 2015 actions identified in the Strategy (e.g. conducting an investment readiness analysis with the Region and Area Municipalities). 6. Advocating for authority from the Province for the Region of Waterloo to acquire, develop, and dispose of sites for industrial, commercial and institutional uses. It is anticipated that the Board of Directors for the new WREDC will be selected by late March 2015, and that the WREDC CEO would be in place by summer 2015. The Board and CEO would develop a more detailed operational and staffing plan, and hire key staff over the fall of 2015, so that the new organization would be operational by late 2015. During 2015 CTT will continue to deliver its important investment attraction /foreign direct investment activities. It will also assist with the start -up of the new WREDC as needed, to ensure the rapid start -up and smoothest possible transition of investment attraction to the new organization. CTT's functions will be fully transferred to the new organization by late 2015 /early 2016, and CTT would cease being the operating entity for regional economic development at that time. Budget and Funding Model The Waterloo Region Economic Development Strategy is an ambitious document that builds on each municipality's common interest in the ongoing economic success of Waterloo Region. Implementing its 43 actions will require the ongoing coordination of both Area Municipal and Regional economic development efforts, as well as the new resources proposed for the WREDC. Recognizing that the new WREDC will have significantly greater responsibilities than CTT, it is proposed that the municipal funding for WREDC would be approximately double the current municipal funding for CTT. This increase from the current funding level of approximately $950,000 per year to the proposed funding level of $2,000,000 per year would be phased in between 2015 and 2017, as shown in Table 1. The proposed funding distribution is based on the current CTT funding, where the Region contributes approximately half of the total municipal funding, and each of the three cities contributes approximately equal amounts. In the proposed funding model, the relative contributions from the four Townships would increase incrementally over the next 3 years. Table 1 (below) provides additional details on the four -year financial commitment requested for the WREDC. It is recommended that each municipality commit funding to the new 3. -9 organization through to the end of 2018, to provide funding certainty to facilitate the successful start -up of the new corporation. Each Council is considering their budget commitment through the 2015 budget deliberation process. To accomplish its goals, it is expected that the new WREDC will determine its strategic priorities based on the available budget and staff resources. Table 1: Proposed WREDC Funding Model (in 2015 dollars) 2014 Funding Cities Cambridge $157,118 Kitchener $160,197 Waterloo $149,000 Townships Woolwich Wilmot Wellesley N. Dumfries ROW Total: 2015 Funding $200,000 $200,000 $200,000 2016 Funding $320,000 $320,000 $320,000 2017 Funding $320,000 $320,000 $320,000 2018 Funding $320,000 $320,000 $320,000 $10,000 $25,000 $35,000 $50,000 $50,000 $10,000 $25,000 $35,000 $50,000 $50,000 $ - $5,000 $10,000 $20,000 $20,000 $ - $5,000 $10,000 $20,000 $20,000 $468,000 $684,000 $900,000 $900,000 $900,000 $954,315 $1,344,000 $1,950,000 $2,000,000 $2,000,000 3. Advancing the East Side Strategic Employment Lands in Cambridge for development readiness A key element in attracting and retaining employers in a competitive global economy is ensuring the region has an adequate supply of development ready employment land. Waterloo region already has approximately 650 hectares (1,600 acres) of land, including vacant land and under - utilized buildings, ready for new businesses and business expansion. However, in response to a shortage of large properties (i.e., 8 hectares or more) for uses like advanced manufacturing, and assembly and processing plants, Regional Council prioritized the development of the East Side Employment Lands in collaboration with the City of Cambridge. The East Side Lands (Stage 1) are east of the Grand River in Cambridge, immediately south of the Region of Waterloo International Airport, and just north of Highway 401. In April 2014, the City of Cambridge, the Region of Waterloo and the Grand River Conservation Authority (GRCA) approved a Master Environmental Servicing Plan (MESP) and Community Plan for the East Side Lands. The MESP was the culmination of 10 years of study 3.-10 and public consultation by the City of Cambridge, the Region and the GRCA. It included a detailed road, water and sewer infrastructure plan, Grand River Transit connections, subwatershed studies, and a flexible phasing strategy. The MESP also satisfied a variety of requirements under the Environmental Assessment Act. The City of Cambridge is now initiating the process to make the necessary amendments to its Official Plan and Zoning By -law to have lands designated and zoned for employment development. The first phase (Stage 1) of East Side Lands is expected to bring about 300 hectares (740 acres) of new employment land to market as soon as late 2015 or early 2016. Work is also underway by Regional staff to develop an aviation /aerospace employment cluster at the Region of Waterloo International Airport, located in Woolwich Township, which could have a significant impact on new job creation and business location in the East Side. This cluster would build on the business activity already occurring at the Regional Airport. As well, work continues to facilitate and develop the employment lands within other areas of the region, such as the employment lands along Highway 7/8 in Wilmot Township. 4. Regional Participation in Facilitating Employment Land Availability The Provincial Municipal Act determines the role and responsibilities of the local municipal governance, including the "spheres of jurisdiction" for the Region and Area Municipalities. In December 2013, Regional Council endorsed a recommendation requesting that the Province of Ontario amend the Municipal Act to add the Regional Municipality of Waterloo to the list of Upper -tier Municipalities that are assigned authority to acquire, develop, and dispose of sites for industrial, commercial and institutional uses. In early 2014, all of the seven Area Municipalities endorsed similar resolutions. As a result of the collective municipal 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 formalize this request. 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. In November 2014, The Minister of Municipal Affairs and Housing responded positively to Chair Seiling's letter, noting that "...this request will be considered as part of the earliest legislative vehicle." Regional staff will continue to follow -up with senior Provincial staff regarding the timing of the necessary amendment. 5. 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 3. - 11 strategic employment lands in Waterloo Region. Regional and Area Municipal staff will continue to evaluate this model. However, most work over 2015 will focus on creating the new WREDC and implementing specific elements of the Strategy. Area Municipal Consultation /Coordination The ongoing collaboration related to economic development within Waterloo Region continues through a Steering Committee, consisting of the CAOs of the Area Municipalities and the Region, as well as the CEO of Canada's Technology Triangle Inc. A Task Force of Regional and Area Municipal economic development staff are also working together to support the Steering Committee. 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: Funding for the WREDC is the subject of a Budget Issue Paper to be considered during the 2015 Budget deliberation process. Kitchener's recommended incremental investment in 2015 is $39,803, with an additional increment of $120,000 of in 2016. COMMUNITY ENGAGEMENT: CONSULT — The recommended strategy and the framework of the new WREDC are the result of consultation with many community stakeholders, including the Advisory Committee of community leaders. INFORM — This report has been posted to the City's website with the agenda in advance of the council meeting. ACKNOWLEDGED BY: Jeff Willmer, CAO Attachment 1 — WREDS Advisory Committee Membership Attachment 2 — Waterloo Region Economic Development Strategy Executive Summary Attachment 3 — Roles and Responsibilities (as completed to date with Task Force input) Attachment 4 — WREDC Value for Money Analysis Attachment 5 — Selection Committee Members 3.-12 Attachment 1- WREDS Advisory Committee Membership, 2014 Gerry Remers President & COO Christie Digital Systems Canada, Inc. Bruce Gordon Chairman Manulife Canada, Manulife Bank, Manulife Trust Carol Leaman President & CEO Axonify Carol Simpson Craig Beattie Ed Roberts Greg Durocher Ian McLean Executive Director Workforce Planning Board of Waterloo Wellington Dufferin Partner Perimeter Development Corporation President President & CEO President/CEO lain Klugman President & CEO Kevin Martin President Malcolm Matheson President Mark Derro Dean Mary D'Alton Michael Duschenes Michael Pley Tim Jackson President & Managing Director Chief Operating Officer Chief Executive Officer Senior Advisor Conestoga- Rovers & Associates (CRA) Cambridge Chamber of Commerce Greater Kitchener Waterloo Chamber of Commerce Communitech Martin's Family Fruit Farm Steed and Evans Limited Conestoga College Waterloo Inn and Conference Hotel Perimeter Institute COM DEV International Ltd. MaRS Centre for Impact Investing 3.-13 Attachment 2 — Waterloo Region Economic Development Strategy Executive Summary 1� F X OF F SUMMAIRY Time Wwrerloo Region, Econornoc Oevelopavenr Saaregy has been creared wah, The Mpuz ofdnainy people, and organiza,dons. ThJS hickodes counciMors and sraff of rice Regoon of Wareyloo, and Flie 7 Area Municipailides, an Advisoo,y Goononirree of privare sec;rN, leaders, tiro Hoare' of G'anada's Technology Djaingie Inc. (CU), nqpmsenrarives of the region's econa:�rnjc sectors and Me, pub is at Jarge,m The result has been an econornic developmenz snraxegy Mar is faci based and which mflecrs Me coflabotzri've and innovaTive spiriz of Mqzerbio regoon. Strategic Cantex I Yatel loo regicirl Is Sin Tile region has long had,' a. suc,&e.'ssful. econcMily that Lis grown and prospered b- )3 1 1 ,y ccmibining sli ng educa ioma and resemch instituticans and a locally insl y )i:re,d iniacwative.,, collablorafive, and entrepreneurial ethic. This Ims, stimulated strong, and dik,,Prse conipwiies i�n the hifmnalion, Communication and Technology sectors and in Ad,-jqnce,d Manufacturing, and Financial Sei� ,ices Man- y conipanies and institatioms a globa.l. reach and pefspecti,,;e. These strong s,ectors are also consistent with an e,,;ilent conipetifi,�-e a.&'antage in the L I va ue chain. These advantages are supperi-ted by a hi g1 I gh qualit°r oflife and disfinctiw ,e regions.. cLqfaclef. Howe%,ef. 11'auricic, regknCs ecc,nc,iinic cc,i�vev is c1i ari�:Uiiirg Tile. regionalGE)p ,grow-th is ex ected to slow o,�,-er the shorl, terni, and to be excee-ded b- i P )r oiler CanaAian and Ontmio cities. 'n�,rhlle Waterloo regiom lhis enviable success,, a strong, econ,omic base and an attractii,,,e location. other areas within tile Greater GoIden H I orseshoe, and elseivhere,, ate cortipeting for the same growth sectors that are, represented in Water I.o,,o f egpon But reaii-pni c,an and imisir resl3crind tliiro ths, All of the elenients that have niade the, region a. powerftil economic location continue to be available to attract People,, ideas, capital, jobs, and success. What is required is an asse,t-five. focused. roactive deplo:, P ynient of these assets to meet the challen'ge and to ensisfe a susla.ina ble and high peffortnanc. e region. Visiarl The Vision for Waterloo, region is ealbod'ied in a statellient that reflects the strengths and aspu-afiotis of the region 3.-14 Oever the course, dof cousultation with many stakeholders in Waterloo region. there were conunom thenies thal emerged in ,,mious contexts. These themes in c luded: a A traditiOn of collabcnative effort,- A tradition of U'Incvation iii. eii #:rep�ei�eiii al p • A diver-sity of philosophy-., talent:, and elvic tradition" and:, • A perspective ti is both local and outwmd looking. The resulting Vision statement IS�: 17'('? be Locictlity, Rtwltilpdf 1� ('101111"I'efithyp'q flind Global,[Y Re,nmvtu,,Pd" Strategic GodIs & O�bjecfives Reall2ing dils 'Vision will require tile. , achievement of four Strategic Goals, each with their own Strategic, Objecth,"es, Goal 1. .: "Fo, bt thim� pireluidell" hl,r atio'll, for and kit) 01 bi e C Itive S ,IN To cantinua, to expand the role of the past - sR,,cundary institutiomin innovation,and entrepreneurship. ,IN To strengthen the culture of innovation within existing businesses and organizations,,. ,IN To attract new, high qualitr, promising, innavative orgmiZations apt d business,es'. ,IN To establish aggressive targets, for expand inn exi'stbig business, attracting new businesses, and start-ups. in To promotRI, international rempition as-a world class, community. 3.-IS G-o"al 2, "Fo be the im ost, ewillopetid"Ve Lo rmltioia fur nemv,,virid empwrurling compiwinieg atid, I P I To conumunicate a compelling value Pro Osition to foreig an "n d do"I'llestIC P compailies and ills titutiollis. To ensui�e a continivows and inmiediately available supply of diverse locations, for new and expanding businesses To ensui�e competitowe costs oflocatlon,, attractuilg talent,,. acid doilig business. To make full use of all felemvant pro 'I able ffL granis aval 71m other levels of go,vernment. To ensui�e fast and eff&tive 111mlicipal. decisiom making. To creatie the most efficient transpottafion system to ineet the needs of a gfolving regional ec,onomv. To eusime, that all. loca I infra structure is sufficient to nieet the needs, of. Waterloo fe?" ,lon Io be ,i, resillerit, d row" Ism IERIC oIMO lam OTUVF. IMOSYSIVEMM, "I ,.Vti To support and stimulate new and existing high growiliseclors. To support, and staimulate strong tmditiOnal. employment sectors To ensui�e a robust, service sector that saipports a healthy., gfovving ecomoflK�. To nuiture small. md medlUm sized entefpiise (SIME). To leverage tile region's post-secondary insfiti-moms to the fulles;t To support, die gow th, long -tR�rm viability, and vibra ncy of Wa teiloo region's Agriculture,, agii1yus"iness and a,v -food smectof. gri G,o a 1 To be rrrt c ir.rm:tn U iri,ft I v cif C 11 uk, P foir teden, torml pee lile,. 10 To become recognized as a maj of loco ti ml for ait an d culture To create, a sustainable, efficient re g lon that anticipates growth To eusme, an aPpropriate mix of hou, mng that reflects the nee& and aspisatIons of cm-rent and future residents. IIN To build on excellence in local e-ducalion 3.-16 Ill Enniployrnen't Growflh'Taget Emplopneut within Waterloc!regglan is f6fecast by flie. Provincial Gfowth Plan to incf-ease by .509,o" over the net 30 years A 10, g-fewth target for Watefloo region is an mcfease of 52,0010-62X0,jobs. Implementation Of t'lle 7WREDS will require an cirganizational franlewafk that can lead the execivion of a couiprehensvve , tfategy. and ensure tlie ulamunull alignment anion g municl,pal, rey,,ional. institLitiomal and private orpnizaticlus that have. au omypfflg male in the attf aclion of inuestment to Wa terloo region Q It is proposed fliat a new Waterloo Re,,,R-ic,n Economic De-k,,elopmeut Ccliporatloln be establiAled to oversee the coordinatiou and implementation c�,f eccalomic develcipment. It IF,, pi-oposed that this non-p-ofit organization be "ammed" by the I Region of Waterloo,, Cltles of Waterloo,, Kitchener and Cambridge and the Towns'llips of Woolxvich, Wilmcjt, Wellesley and N.7,2111 Dulliffle.lS, 3.-17 Attachment 3 — Roles and Responsibilities The Task Force, which includes Regional and Area Municipal economic development staff and a CTT representative, refined a list of specific roles and responsibilities for the WREDC, the Area Municipalities, and the Region, which correspond directly with the Goals and Actions of the WREDS. The Waterloo Region Economic Development Strategy identified the need for a new WREDC. It also proposed a broad set of roles for the WREDC, which would help the new organization support regional economic development. Stakeholders agree that the key responsibilities of the new WREDC include investment attraction, regional promotion, sector development, and entrepreneurship. There is also broad agreement that the new organization needs to complement and support the collaborative efforts of the Area Municipal economic development teams. Over the coming months, the Task Force will work to identify the specific role differences between the WREDC and the municipal economic development teams. One opportunity for instance is to understand how local marketing efforts can be complemented by a coordinated regional economic development brand. The Waterloo Region Economic Development Strategy identifies the key roles and responsibilities of the WREDC as: * Role 1: Management of the regional economic development strategic plan * Role 2: Investment attraction to the region * Role 3: Trade development * Role 4: Supporting key growth sectors on a strategic basis * Role 5: Communications, promotion and marketing * Role 6: Targeted talent development efforts * Role 7: Region -wide entrepreneurship development * Role 8: Support for rural economic development in the region * Role 9: Building and maintaining the economic development stakeholder network/ ecosystem * Role 10: Coordination of regional economic development strategic planning and implementation These roles are further refined below. Regional economic development agencies tend to be by necessity broad - based. This means they take on a wide range of responsibilities relative to allocated resources. To manage its portfolio effectively, the Board of Directors and leadership of the WREDC will have to be strategic when allocating resources against each area of responsibility. Some activities, such as investment attraction, will require a more proactive approach while other areas, such as support for key growth sectors, may be more reactive. 3.-18 The following table outlines the proposed roles of the WREDC under the goals of the WREDS. The deliverables describe how the organization could provide leadership and add measurable value to each area of responsibility. WREDS Goal #1: To be the premier location for innovation and entrepreneurship WREDC Role: Deliverables: Alignment with WREDS: - Develop region -wide - Work with stakeholders in the region to Actions: 1.1.1, 1.4.1 entrepreneurship (New) ensure consistent service levels and Priority: Medium coordination of all aspects of Initiate: 2016 entrepreneurship development (i.e. storytelling, training, financial assistance, venture capital, mentoring, etc.) - Identify and support key - Determine key growth sectors where Actions: 1.1.2, 1.2.1, 1.2.3, growth sectors on a regional stakeholder support could add 1.3.1 strategic basis (New) real value. Develop a regional approach Priority: Medium The focus here must be on including stakeholders (e.g. investment Initiate: 2017 -2019 identifying ways that the attraction, fostering entrepreneurship, WREDC can add value. talent needs, research institutions /centres, etc.) - Develop key growth sectors action plans Actions: 3.1.1, 3.2.2 with related stakeholders Priority: High Initiate: 2016 - Implement BR &E effort for regionally Actions: 3.4.1 significant sectors and businesses in Priority: Medium partnership with Area Municipalities Initiate: 2017 -2019 - Monitor local business issues and Actions: 2.1.1, 2.2.1 coordinate programs to address regional Priority: High needs, in collaboration with the Area Initiate: 2016 Municipalities 3.-19 WREDS Goal #2: To be the most competitive location for new and expanding companies and institutions WREDC Role: Deliverables: Alignment with WREDS: - Attracting investment to the - Develop a targeted investment Actions: 1.3.1, 1.3.2, region (Enhanced) attraction plan 1.5.1, 2.1.1 Including the building of strong Priority: High partnerships with both Initiate: 2016 - Prepare the value proposition for Actions: 2.1.1 provincial and federal government investment investment attraction into key growth Priority: High attraction teams. sectors Initiate: 2016 'Investment' in 2014 is broader - Ensure an available land and buildings Actions: 2.2.1 than just attracting greenfield inventory is accessible and a key asset Priority: High (i.e. new expansion) projects. in the sales process Initiate: 2015 It can include the attraction of - Conduct investment readiness analysis Actions: 2.5.1, 2.6.1, investors to provide capital with the municipalities and key 2.7.1 and expertise for existing high industries Priority: High growth potential Initiate: 2015 entrepreneurs. It can include the attraction of research opportunities as well. - Developing Trade (New) - Organize trade missions for key growth Actions: 3.1.2 sectors in conjunction with provincial Priority: High Must be highly targeted and and federal government trade teams; Initiate: 2016 value added efforts. identify target sectors and target geographic areas - Coordinating regional - Coordinate and create a Actions: 3.1.2 communications, promotion communications plan designed to tell Priority: High and marketing (New) the Waterloo Region story to a broad Initiate: 2016 - The raw data should come range of target audiences (investors, mostly from the Region of talent, trade offices, tourists, senior ice o Office Waterloo — O Economic levels of government) - Develop and implement products and Actions: 3.1.2, 2.1.1, Development initiatives, including but not limited to: 2.2.1, 2.2.2, 2.3.1 - Regional profile Priority: Medium - Regional business directory Initiate: 2016 - Website - Sector profiles - Regular business update communication - Land development and real estate 3. -20 WREDS Goal #3: 7o be a resilient, engaged, and dynamic economic ecosystem WREDC Role: Deliverables: Alignment with WREDS: - Managing the implementation - Develop key performance indicators Actions: n/a of the regional economic (KPIs) Priority: High development strategic plan Priority: High Initiate: 2015 (New) Initiate: 2016 here. It is a critical issue to the - Coordinate and manage regular Actions: 2.5.1 There is a significant meetings with partner municipalities Priority: High coordination role associated to ensure ongoing coordination of Initiate: 2015 with the new strategy as activities government, education, activities are distributed across Initiate: 2016 -Work with municipalities and - Report annually to the Councils of all Actions: n/a many different organizations. partner municipalities on the Priority: High The WREDC should play this organizations results, challenges and Initiate: 2016 role. strategic direction Initiate: 2017 -2019 - Building and maintaining the - Ensure partner organizations (those Actions: 2.5.1 economic development implicated in the regional economic Priority: High stakeholder development strategy) are involved in Initiate: 2015 network /ecosystem the implementation of the strategy. (Enhanced) Provide ongoing feedback. - Maintain updated knowledge of Actions: 2.4.1 public- and private- sector programs Priority: Medium (funding) and update area Initiate: 2016 municipalities in a coordinated way - Address any regional economic Actions: n/a development - related policy issues Priority: Medium Initiate: 2016 - Promote a sustainable rural - Dedicate resources and research rural Actions: 3.6.1, 3.6.2, and urban fabric (New) township issues — liaison, advocacy, 3.3.2 It was clear there is a gap in inclusion and support to local Priority: Medium economic development efforts economic development initiatives Initiate: 2016 in rural areas around the region. WREDS Goal #4: 7o be a community of choice for talented people WREDC Role: Deliverables: Alignment with WREDS: - Develop and attract talent - Assess talent needs in key growth Actions: 4.4.1, 4.4.2 (New) sectors and communicate with key Priority: High Need to tightly define the role labour market development partners Initiate: 2016 here. It is a critical issue to the - Organize talent attraction missions in Actions: n/a future prosperity of the region but there are many key markets Priority: High government, education, Initiate: 2016 -Work with municipalities and Actions: 4.1.1, 4.2.2, business groups and NGOs involved. townships on retention lifestyle issues 4.2.3, 4.3.1 Priority: Medium Initiate: 2017 -2019 3. -21 III NOR 11 li��iiiiiiiiiii ill s . The economic development strategy recommends that the WREDC enter into service or partnership agreements with the regional Area Municipalities, which would define the specific economic development roles and responsibilities of all parties involved. It is important that partner municipalities and allied organizations agree on their specific roles to avoid duplication and to ensure the efficient use of resources. It is expected that the focus of the Area Municipalities will continue to be on the economic development - related activities that are local in scope. These activities are often too complicated and varied to organize effectively at a regional level, especially when there is already strong expertise within the Area Municipalities for them. After consulting with the Area Municipalities, the following high -level list of roles was developed. WREDS Goal #1: To be the premier location for innovation and entrepreneurship institutions Municipality Role: Deliverables: Alignment with WREDS: - Key sector development and - There are sectors that are of Actions: Multiple business support related to greater interest to specific area Priority: High municipal priority areas municipalities. Initiate: Ongoing WREDS Goal #2: To be the most competitive location for new and expanding companies and institutions Municipality Role: Deliverables: Alignment with WREDS: - Investment attraction support - While many of the factors that Actions: Multiple drive site selection are regional, a Priority: High company looking at a Waterloo Initiate: 2015 Region location can choose between municipalities, neighbourhoods, and real estate options. While the WREDC is making the regional 'pitch' for investment attraction and key growth industry expansion, it is important for the municipalities to have the local information and compelling 'pitch' in order to close the deal. - Each municipality will need Actions: 2.2.1 available land and building options Priority: High to attract investment. Initiate: 2015 3. -22 WREDS Goal #2: To be the most competitive location for new and expanding companies and institutions Municipality Role: Municipality Role: Deliverables: Alignment with WREDS: - Downtown, Central Transit - This type of development is Actions: Multiple Corridor and industrial/ important for attracting the talent Priority: High commercial park development and investment central to truly Initiate: 2015 *In partnership with the Office vibrant communities. of Economic Development Priority: Medium - Local marketing efforts - To promote the attributes of the Actions: Multiple - New Canadians feel welcome and municipalities within the region. Priority: Medium integrate into local communities. Priority: High Initiate: 2015 WREDS Goal #3: To be a resilient, engaged, and dynamic economic ecosystem Municipality Role: Deliverables: Alignment with WREDS: - Economic development - This is important to ensure Actions: Multiple advocacy within the municipal alignment of economic Priority: High government development with overall Initiate: 2016 Sense of place /quality of life priorities. Actions: 4.2.2 WREDS Goal #4: To be a community of choice for talented people* Municipality Role: Deliverables: Alignment with WREDS: Arts and culture development - A dynamic and vibrant arts and Actions: 4.1.1 efforts cultural scene. Priority: Medium Initiate: 2017 -2019 Sense of place /quality of life - Downtown development, rural Actions: 4.2.2 communities, livability. Priority: Medium Initiate: 2017 -2019 Integrating new Canadians - New Canadians feel welcome and Actions: 4.4.2 integrate into local communities. Priority: High Initiate: 2016 M• • • •• 1 • • • i-- 04 • The Region of Waterloo Office of Economic Development is a new partner in the regional economic development ecosystem. Rather than duplicating the front line services being delivered by the WREDC and the Area Municipal economic development departments, the proposed role for the Office of Economic Development (OED) is mostly supportive in nature. The OED would contribute by becoming a resource for the coordinated regional and municipal economic development efforts. It is uniquely positioned to help address large -scale transportation, goods movement, planning and servicing needs, as well as to ensure consistency in data gathering, information sharing, and monitoring. Activities would include: 3. -23 WREDS Goal #1: To be the premier location for innovation and entrepreneurship institutions Office of Econ. Dev. Role: Deliverables: Alignment with WREDS: - Provide data and research - The planning team within the Region Actions: 2.1.1, 4.2.2 support for economic of Waterloo maintains a large Priority: Medium development repository of data specific to the Initiate: 2016 Initiate: 2015 regional economy and has ensure that economic development significant expertise in research - This could include: Actions: 1.1.2, 1.2.1, 1.2.3 based policy development. This - Economic base analysis Priority: Medium expertise and data can be leveraged - Surveys and analysis (wages, etc.) Initiate: 2016 to support the ongoing business - Across the region for economic Actions: 2.2.1, 2.2.2 case for municipal investment in development purposes (i.e. Priority: Medium economic development. One employment lands). Initiate: 2015 example service is regional maps marketing and capacity building. The showing concentrations of key assets, talent and real estate opportunities. WREDS Goal #2: To be the most competitive location for new and expanding companies and institutions Deliverables: Office of Econ. Dev. Role: Deliverables: Alignment with WREDS: - Develop a Central Transit - Develop a corridor -wide Actions: Multiple Corridor Investment Strategy investment strategy Priority: High in partnership with the Area - Pilot new incentive programs Initiate: 2015 Municipalities ensure that economic development - Key growth sector analysis - This could include: Actions: 1.1.2, 1.2.1, 1.2.3 - Economic base analysis Priority: Medium - Surveys and analysis (wages, etc.) Initiate: 2016 - Inventory of available urban - Across the region for economic Actions: 2.2.1, 2.2.2 and greenfield land development purposes (i.e. Priority: Medium Initiate: 2016 employment lands). Initiate: 2015 WREDS Goal #3: To be a resilient, engaged, and dynamic economic ecosystem Office of Econ. Dev. Role: Deliverables: Alignment with WREDS: - Economic development - The OED would help businesses and Actions: 2.3.1 advocacy within the Region of projects navigate the regional Priority: Medium Waterloo government to ensure decisions are Initiate: 2015 made in a timely manner. It should ensure that economic development priorities are aligned with the broader plans for Waterloo Region. - Promote a sustainable rural - To achieve consistent levels of Actions: 3.3.4 and urban fabric service in the rural areas to support Priority: Medium entrepreneurship, business Initiate: 2016 retention, investment attraction, marketing and capacity building. The 3. -24 The new Waterloo Region Economic Development Strategy is a regional strategy, rather than simply a guiding document for a single organization such as the WREDC. The benefit of this approach is that it brings together a wide range of stakeholders, which together can have a much bigger impact compared to a single organization working alone. However, this approach presents challenges because the WREDC will have limited control over many of the outcomes. It is likely to have a smaller budget and fewer resources than many of its partners, yet it is intended to play the leadership and coordinating role, and to report on progress and results. Its allied organizations include: * Area Municipalities * Region of Waterloo * Accelerator Centre° and Communitech * Business groups * Chamber(s) of Commerce * Waterloo Region Tourism Marketing Corporation * Creative Enterprise Initiative * Post - secondary educational institutions * Small business centres * Sustainable Waterloo Region * Workforce Planning Board * Others 3. -25 Townships are in a unique position where they are encouraging the economic vitality of their complete communities, while simultaneously protecting a rural way of life. - Aligning the regional - At a Regional level Actions: 2.1.1 economic development - Promoting the Region of Waterloo Priority: Medium strategy and planning International Airport Initiate: 2016 priorities and servicing needs - Preparing the East Side Strategic Employment Lands with the City of Cambridge for new development opportunities The new Waterloo Region Economic Development Strategy is a regional strategy, rather than simply a guiding document for a single organization such as the WREDC. The benefit of this approach is that it brings together a wide range of stakeholders, which together can have a much bigger impact compared to a single organization working alone. However, this approach presents challenges because the WREDC will have limited control over many of the outcomes. It is likely to have a smaller budget and fewer resources than many of its partners, yet it is intended to play the leadership and coordinating role, and to report on progress and results. 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L a� 4— L c6 O U OU Z O � —0 vN U-0 U 0 to Q O > .0 N 0 I Q W N V O O E 0 -OVO L L W E U I (6 Q N U Z � 1 U 6 i 0 SSOUOA1430113 LU � o N ■ M Attachment 5 — Board Selection Committee Membership Municipal Representatives Berry Vrbanovic Mayor Dave Jaworsky Mayor Doug Craig Mayor Ken Seiling Regional Chair TBD Mayor City of Kitchener City of Waterloo City of Cambridge Region of Waterloo Township of ?? Volunteer Members from the Economic Development Advisory Committee Bruce Gordon Chairman Manulife Canada, Manulife Bank, Manulife Trust Greg Durocher President & CEO Cambridge Chamber of Commerce Ian McLean President/CEO Greater Kitchener Waterloo Chamber of Commerce Mary D'Alton President & Waterloo Inn and Conference Hotel Managing Director Tim Jackson Senior Advisor MaRS Centre for Impact Investing 3. -28