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HomeMy WebLinkAboutCAO-16-009 - Make it Kitchener Project Schedule and Budget Allocation REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: March 7, 2016 SUBMITTED BY: Rod Regier, Executive Director, Economic Development (519) 741-2200 ext 7506 PREPARED BY: Rod Regier, Executive Director, Economic Development (519) 741-2200 ext 7506 WARD (S) INVOLVED: All DATE OF REPORT: February 18, 2016 REPORT NO.: CAO-16-009 SUBJECT: Make it Kitchener Project Schedule and Budget Allocation ___________________________________________________________________________ RECOMMENDATION: For information. BACKGROUND: In November 2015, Council approved Make it Kitchener, the city’s new economic development strategy. It also identified the Economic Development Reserve Fund as the logical funding source for any investment in catalytic projects coming out of Make it Kitchener. This report outlines the proposed implementation schedule and the general scale of possible financial commitments to implement Make it Kitchener. Note that the financial decisions will follow the provisions of the Purchasing By-Law. REPORT: Kitchener has adopted an ambitious new economic development strategy: Make it Kitchener. The strategy is based on the simple observation that Kitchener has at its core an innate creative impulse, the ability to invent and reinvent the city’s role in rapidly evolving global economies by making things; whether it be buttons, leather products, tires, auto parts, consumer electronics, software, music, film, or even a city itself. Make it Kitchener identified over 50 action items in its program. Many of those items involve little or no additional funding from the City of Kitchener. Kitchener staff committed to working within the envelope of the Economic Development Reserve Fund and the existing operating budget to implement Make it Kitchener. While the strategy will be primarily implemented through partnerships with economic development stakeholders and the City’s financial role will generally be a minority share of any related major projects, Council did acknowledge a willingness to fund up to 100 per cent of strategic projects. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. IF3 - 1 The attached work plan provides an overview of the current schedule of major projects in the strategy. This list has been developed by Economic Development staff in consultation with key partners. The timelines are often a product of the partner’s development schedule. The City’s role in most projects is to support catalytic initiatives that will advance the strategy by either developing or supporting physical or organizational infrastructure. In the larger initiatives, the City’s contribution is often used to leverage a much more significant contribution from the private sector, higher levels of government, or university partners. In all cases, the proposed financial contribution is guided by the limitations to municipal funding established in the bonusing provisions of the Municipal Act. The approximate financial allocation for Make it Kitchener proposed in this document is approximately $5 million. The balance of the Economic Development Reserve Fund is currently $8.3 million. Proposed allocations for the Economic Development Reserve are as follows. Make it Spark $ 500,000 Make it Start $2,500,000 Make it Grow $ 800,000 Make it Urban $ 300,000 Make it Vibrant $ 400,000 Make it Connect $ 300,000 Make it Kitchener total $4,800,000 Communications, project planning and research $ 200,000 Innovation District Parking $2,000,000 Unallocated (land acquisitions, emerging opportunities) $1,300,000 Total Economic Development Reserve $8,300,000 Significant investments are proposed for each component of Make it Kitchener; the largest component of the program is “Make it Start”. This includes proposed expansion or development of three support facilities for startups, including the Velocity life sciences incubator, a manufacturing incubator, and a new film and music incubator. Kitchener and the Waterloo Region have become known worldwide as a globally competitive startup ecosystem. Startup companies are creating jobs and economic growth in manufacturing, software, and life sciences, which is transforming our economy. The attached work plan identifies major projects and identifies the general anticipated funding allocation within a high level range. Projects requiring an investment of less than $100,000 are labeled “low”, from $100,000 to $500,000 are labeled “medium” and above $500,000 are labeled “high”. It is important to note that the allocations are, for the most part, preliminary as detailed project planning has not been completed and final cost estimates are not available. IF3 - 2 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: This report supports the implementation of the City of Kitchener’s Economic Development Strategy:Make it Kitchener. FINANCIAL IMPLICATIONS: This report does not require allocation of additional financial resources. Individual initiatives will be the subject of further reports to committee and council, consistent with the Purchasing By- law. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. CONSULT – This report is the result of extensive consultation with economic development stakeholders and the community at large. COLLABORATE – Most of the projects identified in Make it Kitchener will be implemented in collaboration with community partners and economic development stakeholders. CONCLUSION: Make it Kitchener and the allocations proposed for the Economic Development Reserve Fund build on the successful approach taken by the City of Kitchener in the implementation of the Economic Development Investment Fund and previous economic development strategies. Make it Kitchener is an ambitious economic development strategy that is designed to position the community to compete in the global innovation economy. Private and public sector partners are transforming the urban economy, creating employment in information technology, digital media and manufacturing. Make it Kitchener enables the City of Kitchener to continue to play a leadership role in this process. The proposed implementation schedule and budget allocation will ensure this strategy is effectively executed during the current term of Council. ACKNOWLEDGED BY: Jeff Willmer, CAO IF3 - 3 IF3 - 4 IF3 - 5 IF3 - 6 IF3 - 7 IF3 - 8 IF3 - 9 IF3 - 10 IF3 - 11 IF3 - 12 IF3 - 13 IF3 - 14 IF3 - 15 IF3 - 16