HomeMy WebLinkAboutDSD-18-012 - Renewal of Memorandum of Understanding - WREDCREPORT TO: Committee of the Whole
DATE OF MEETING: May 7, 2018
SUBMITTED BY: Cory Bluhm, Executive Director Economic Development
PREPARED BY: Brian Bennett, Manager Business Development
WARD (S) INVOLVED: All
DATE OF REPORT: April 11, 2018
REPORT NO.: DSD-18-012
SUBJECT: Renewal of Memorandum of Understanding with Waterloo Region
Economic Development Corporation (WREDC)
_________________________________________________________
RECOMMENDATION: That the City of Kitchener renew the Memorandum of
Understanding with the Waterloo Region Economic Development Corporation as outlined
in Report DSD-18-012, dated April 11, 2018; and,
That the Mayor and Clerk be authorized to enter into such agreement to renew the
Memorandum of Understanding, with such agreement to be satisfactory to the City
Solicitor.
that
BACKGROUND:
In 2015, the Region of Waterloo and all seven municipalities endorsed the Waterloo Region
Economic Development Strategy, as well as the establishment of the Waterloo Region
Economic Development Corporation (WREDC).
REPORT:
A Memorandum of Understanding (MOU) between WREDC and all 8 municipal funding partners
was signed in September 2015. The MOU will expire on December 31, 2018. Since its
inception, WREDC has developed their organizational structure, hired staff and have generated
measurable success and accomplishments. The C
currently $320,000 annually. Staff are satisfied with the results WREDC has generated and are
recommending renewal and extension of the MOU. The area , together with WREDC
Board and CEO worked to develop an updated MOU comprised of the following key
components:
1)Most of the elements of the original MOU will remain intact
2)Extension of the agreement to 5 years (January 1, 2019 to December 31, 2023, ensuring
the renewal does not fall in 2022 which is an election year)
3)All funding partners will maintain at a minimum their current funding levels (Kitchener is
$320,000 annually) over the 5 year term of the agreement. WREDC could submit
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proposals for funding increases if necessary and would be subject to approval by the
funding partners.
4)The municipalities agree not to terminate their agreement -termination
this has been reduced from the previous 4 year non-termination in the original
agreement.
5)WREDC agrees to continue to implement all of the monitoring, reporting and
accountability outlined in the original MOU.
The benefits that have accrued from the creation of WREDC include:
Investment attraction to Waterloo Region which includes a value proposition for investing
Foreign Direct Investment attraction
Partner with the Provincial and Federal governments to attract industry and grow key
sectors of the economy
Access to new regional marketing and communication materials to help attract and retain
investment, businesses, and talent
Access to shared data and analysis
New resources and expertise to help identify and support strategic growth sectors as key
regional assets
WREDC brand development
WREDC Successes and Accomplishments
5 Mayoral and 24 Foreign Direct Investment missions to California, Germany, Chicago,
Japan, Korea, Boston, New York City
Since inception hosted 81 inbound trade missions
Since inception closed 21 investment deals valued at $344 Million
It should be noted that regardless of where an investment in the Region ends up, all of the
Communities within the Region benefit through employment income, housing, retail/restaurants,
etc.Also, this level of effort and results are only possible as part of a collective effort an
individual municipality would be hard pressed to achieve similar FDI results on their own.
WREDC Funding Model
Cities201920202021 20222023
Funding Funding Funding Funding Funding
Cambridge$320,000$320,000$320,000$320,000$320,000
Kitchener$320,000 $320,000 $320,000 $320,000 $320,000
Waterloo$320,000 $320,000 $320,000 $320,000 $320,000
Wellesley$20,000 $20,000 $20,000 $20,000 $20,000
Wilmot$50,000 $50,000 $50,000 $50,000 $50,000
Woolwich$50,000 $50,000 $50,000 $50,000 $50,000
N.Dumfries
$20,000$20,000 $20,000 $20,000 $20,000
ROW$900,000$900,000 $900,000 $900,000 $900,000
Total$2,000,000$2,000,000$2,000,000$2,000,000$2,000,000
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Comprised of a team of 12 -op Students, WREDC represents both the City of
Kitchener and the Region of Waterloo locally and abroad,providing good value for our funding
investment.
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.
FINANCIAL IMPLICATIONS:
The funding commitment is to be maintained at the current level of $320,000 per year for the
next 5 years which is funded from the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORMda in advance of the
council meeting.
CONSULT The framework of WREDC through the MOU renewal are the result of previous
consultation with many community stakeholders. WREDC conducts a Public Information
Meeting on an annual basis, providing an opportunity for stakeholders and community
members to inform their future work.Quarterly updates and an Annual Report are posted to
s All Council Meeting.
ACKNOWLEDGED BY: Justin Readman, General Manager of Development Services
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