HomeMy WebLinkAboutFCS Agenda - 2020-11-02Finance & Corporate Services Committee
Agenda
Monday, November 2, 2020
1:00 p.m. -3:00 p.m.
Office of the City Clerk
Electronic Meeting
Kitchener City Hall
nd
200 King St.W. -2Floor
Kitchener ON N2G 4G7
Page 1Chair -Councillor S. DaveyVice-Chair -Councillor J. Gazzola
Due to COVID-19 and recommendations by Waterloo Region Public Health to exercise physical
distancing, City Hall is open for select services. Members of the public are invited to participate in this
meeting electronically by accessing the meeting live-stream video at kitchener.ca/watchnow.
While in-person delegation requests are not feasible at this time, members of the public are invited to
submit written comments or participate electronically in the meeting by contacting Sarah Goldrup,
Committee Administratorat sarah.goldrup@kitchener.ca.Delegates must register by 10:00 a.m. on
November 2, 2020, in order to participate electronically. Written comments will be circulated prior to the
meeting and will form part of the public record.
ConsentItems
The following matters are considered not to require debate and should be approved by one motion in accordance
with the recommendation contained in each staff report. A majority vote is required to discuss any report listed
as under this section.
None
Delegations
Pursuant to Council’s Procedural By-law, delegations are permitted to address the Committee for a maximum of five
(5)minutes.
None
Discussion Items
1.FIN-20-063-2021 User Fees(45min)
(Staff will provide a 5-minute presentation on this matter)
2.DSD-20-178-Make it Kitchener 2.0 Partnership Opportunity(60min)
(Staff will provide a 5-minute presentation on this matter)
(Materials to be circulated under separate cover)
Information Items
None
Sarah Goldrup
Committee Administrator
** Accessible formats and communication supports are available upon request. If you require assistance to
take part in a citymeeting or event, please call 519-741-2345 or TTY 1-866-969-9994 **
REPORT TO:Finance and Corporate Services Committee
DATE OF MEETING: November 2, 2020
SUBMITTED BY:Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
PREPARED BY:Ryan Hagey, Director of Financial Planning
519-741-2200 Ext 7353
WARD(S) INVOLVED:All
DATE OF REPORT:October 20, 2020
REPORT NO.: FIN-20-063
SUBJECT:2021 User Fees
______________________________________________________________________
RECOMMENDATION:
THAT 2021 user fees be held flat at 2020 rateswith the exception of those fees specifically
identified in report FIN-20-063; and
THAT the proposed fees and charges contained in the 2021 User Fee Schedule attached to
Financial Services Department report FIN-20-063be approved; andfurther,
THAT Legal Services staff be directed to prepare the necessary by-laws to amend The City of
Kitchener Municipal Code Chapters for fees and charges pertaining to licensing, planning
applications, building permits and Committee of Adjustment applications.
BACKGROUND:
A comprehensive review of fees and charges forms part of the annual budget process. Council normally
approves a new fee schedule each fall to provide time to secure Provincial approvals and by-law
amendments before fees are increased effective the beginning of the following year.
Fees and charges are used by municipalities as an alternative to fully funding various programs and
services through property taxes. Fees and charges are often used for programs and services where
customers have a choice whetherto use them and, for this reason, the use of fees and charges tends to
be favoured over property taxes alone.
REPORT:
A comprehensive schedule of proposed fees and charges is attached to this report.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994for assistance.
1 - 1
When setting individual rates, departments consider a range of factors including cost recovery,
legislation, rates of other municipalities and market conditions. Given the localimpacts COVID-19,
holding the vast majority of user fees flat at 2020 levels is one way the City can help individuals and
businesses who are struggling financially due to the pandemic. Further, most building permit fees are
proposed to be reduced by 10%. A reduction to these fees helps lowerthe costs of development in
Kitchener, and can be accommodated based on Building’s strong financial results in past years which
has built up a healthy balance in the itsstabilization reserve.
The table below breaks down the change in fees into different categories. This breakdown shows the
vast majority (94%) of fees are remaining at 2020 levels. A small number of fees are proposed to
decrease, and only three fees have aproposed increase related to legislation or previous Council
decisions. No new fees are proposedfor 2021.
Summary of Change in User Fees Compared to Prior Year
Fee change# of Fees% of Fees
Fee decrease (i.e. less than 0%)725%
No change (i.e. 0%)125394%
Between 0% -1.5%00%
Between 1.5% -2.5%2Less than 1%
Greater than 2.5%1Less than 1%
New fee00%
The remainder of the report highlights fee changes that differ from the inflationary guideline.
Highlighted Fee Changes
Special Events (fees 17 –78 on the detailed fee schedule)
Allfees have remained at the 2020 rate,with the following exception:
Proposed 2022 Victoria Park Pavilion (VPP) Wedding Package (fee 78on the detailed fee
schedule)
In 2019, staff reviewed the costs of similar wedding packages from a number of venues and
found the City’s wedding package pricing was below existing market ratesfor weekend rentals
(Friday, Saturday, and Sunday).Council approved increasing the fees to better reflect market
rates, but to phase in the increase over a three-yearperiod(the 2022 wedding season being the
second year of the three year phase in period). The fee for 2022 weddings will increase from
$3,500 to $4,500 as per previous Council direction.All other VPP rentals for 2021 will remain at
2020 rates, allowing every other group/event to rent the facility at existing rates.
It is even more important in light of COVID-19 that the City move towardsa market-competitive
rate for venue rentals on prime dates. The hospitality sector is not anticipated to recover for at
least to 2-3 years and large event venues are among the hardest hit. For that reason, the City
should not offer a rental rate that undercuts private sector venues as they struggle to regain
business and return to profitability.
1 - 2
Building (fees 358 - 456on the detailed fee schedule)
The Building Enterprise is proposing a 10% reduction to most of the permit fees for the 2021budget.
Favourable results over the last few years have allowed the Building Stabilization reserve fund to reach
its target level. This rate reduction will help maintain the reserve fund within its minimum and maximum
target levels going forward.
Fire (Fees 459 - 534 on the detailed schedule)
Response to Provincial Highways/Truck (fee 515 & 516) – these hourly rates are set by the
Province and have been updated to match their legislated fee.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategicvision through the delivery
of core service.
FINANCIAL IMPLICATIONS:
User fees make up approximately 11% of the revenues used to fund the tax supported operating
budget. The proposed 2021 tax supported budget includes no increaseto these fees, unless otherwise
noted in this report.
COMMUNITY ENGAGEMENT:
INFORM and CONSULT
This report has been listed on the City’s website. In addition, the finalized listing will be posted on the
City’s website afteradoption by Council.
The Planning, Engineering and Building fees were reviewed with development industry stakeholders at
a Waterloo Region Homebuilders Liaison committee meeting with no objections.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer (CFO), FinancialServices
1 - 3
1 - 4
1 - 5
1 - 6
1 - 7
1 - 8
1 - 9
1 - 10
1 - 11
1 - 12
1 - 13
1 - 14
1 - 15
1 - 16
1 - 17
1 - 18
1 - 19
1 - 20
1 - 21
1 - 22
1 - 23
1 - 24
1 - 25
1 - 26
1 - 27
1 - 28
1 - 29
1 - 30
1 - 31
1 - 32
1 - 33
1 - 34
1 - 35
1 - 36
1 - 37
1 - 38
1 - 39
1 - 40
1 - 41
1 - 42
1 - 43
1 - 44
1 - 45
1 - 46
1 - 47
1 - 48
1 - 49
1 - 50
1 - 51
1 - 52
1 - 53
1 - 54
REPORT TO: Finance and Corporate ServicesCommittee
DATE OF MEETING: November 2, 2020
SUBMITTED BY: Cory Bluhm, Executive Director Economic Development 519-741-2200
ext. 7065
PREPARED BY: Brian Bennett, Manager Business Development 519-741-2200 ext. 7230
WARD (S) INVOLVED: Ward 9
DATE OF REPORT:October 27, 2020
REPORT NO.: DSD-20-178
SUBJECT: Make it Kitchener2.0 – Health Innovation Partnership
& Business Case
___________________________________________________________________________
RECOMMENDATION:
That up to $8.5M from the Kitchener Economic Development Investment Fund 2.0 be
allocated to support the renovation of the University of Waterloo’s buildinglocated at 280
Joseph St W, to expand the Downtown Kitchener Health Sciences Campustohouse the
University of Waterloo’s Velocity program and new Health Innovation opportunities, in
accordance with report DSD-20-178; and further,
That the Mayor and Clerk be authorized to execute all documentation required to
complete the transaction, in accordance with report DSD-20-178, with said documentation
to be to the satisfaction of the City Solicitor.
EXECUTIVE SUMMARY:
As a key action in the City’s Corporate Strategic Plan, in 2019, City Council directed staff to
undertake a business case for an incubator/accelerator/co-working space to support health/med-
tech industries. Throughout the communityengagement that lead to the creation of Make It
Kitchener 2.0, health innovation was identified as a top growth priority for our local economy.
The University of Waterloo(UW), in partnership and collaboration with the City of Kitchener
(COK), is proposing to develop a new, 8,360 square metre(90,000 square foot)healthinnovation
facility.For detailed information, please refer to the University of Waterloo, Velocity Heath
Innovation Partnership, Business Case as contained in Appendix A of this report.
The University of Waterloo Board of Governors approved proceeding with a partnership with the
City of Kitchener at their October 27, 2020 meeting. (Refer to Appendix B)
As the proposed new home for UW’s Velocity Program, the facility would be focused on the
incubation of medical technology companies,deep science technology and multi-disciplinary
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
2 - 1
research. With a focus on technology and innovation based solutions to health challenges, the
proposed facility would be unlike any other in Canada. Located on the UW Health Sciences
Campus, in Downtown Kitchener's Innovation District, the new facility would becomethe centre
point of the region’s growing health industry, leading to long-term growth of local companies,
industry diversificationandemployment opportunities.Lands and buildings throughout the
Innovation District, could accommodate new office developments, emerging companies andnew
jobs. Together, the UW School of Pharmacy, McMaster DeGroote School of Medicine, the
proposed health innovation facility and surrounding employmentlands have the potential to
become a globally significant centre for health innovation.
Globally and provincially, the health industry is expected to experience significant growth over
the next 20+ years. Based on past trends, the Kitchener community will be challenged to
compete for job growth unless significant investments, such as this, are made. This is evident
based on feedback from stakeholders who have noted that the lack of wet lab space in our
region, for example, will lead to the loss of entrepreneurs and companies to other communities.
The costs associated with the development of the proposed facility are estimated at $35 million.
Staff propose the City would provide a contribution of up to $8.5 million (25% of the capital costs).
It is anticipated that the balance of capital costs would be shared by the University, and senior
levels of government. If built as proposed, every dollar contributed by the economic
development investment fund would be matched by at least 3 dollarscontributedfrom other
sources.
As part of the partnership, UW would lease 5,000 square feet of space to the City for $1 for use
by the Waterloo Region Small Business Centre, to ensure local entrepreneurs and small
business owners can access the facility and collaborate with Velocity companies and UW
researchers.
COVID-19 has reinforced that we need to become more self-sufficient locally, regionally and
national in health technologies and life sciences. The expanded Health Sciences Campus with
the proposed health innovation facility will provide innovators, startups, scaleups and local Small
and Medium Enterprises (SME) the infrastructure, mentorship and resources they need to
succeed in today's competitive global health industry. This proposal is a long-term investment
in the community’s future, providing a transformational opportunity to become a global leader in
medical technologyand life sciences.
BACKGROUND:
For detailed background information, refer to section 2.0 of the Business Casewithin Appendix
A.
In 2006, the City of Kitchener partnered with the University of Waterloo to establish the Health
Sciences Campus in Downtown Kitchener in the Innovation District. The initial phase was
centred aroundUW’s School of Pharmacy supported by a $30M investment from the City of
2 - 2
Kitchener, followed by the McMaster DeGroote School of Medicine. A vacant 90,000 sq ft
warehouse remained on the campus with the intent for it to be repurposed over time.
In 2016, the City of Kitchener (COK) invested $500,000 in the University of Waterloo’s Velocity
program, an incubator for startups and scaleups.With a shortage of wet lab space in the Region,
the investment doubled Velocity’s capacity to 36,000 sq ft in the Tannery. Although Velocity
focussed on more technological hardware applications, as a result of the wetlab space, more
companies have emerged focussed on medical technologyand deep science.
In 2019, as part of the City’s Corporate Strategic Plan, City Council directed staff to develop a
business case for an incubator/accelerator/co-working space to support health/med-tech
industries.
In 2019-2020, through engagement leading to the development of Make It Kitchener 2.0,
residents, business owners and business leadersidentifiedhealth innovation as a top priority
and opportunity for new economic, company and job growth for our community.Similarly, the
City’s Economic Development Advisory Committee identified health innovation as the top
opportunity for industry growth. For more information, refer to report DSD-20-056.
The health industry is now poised for significant growth throughout North America, driven by three
key factors: the needto respond to the COVID-19 pandemic; an aging population; and, a societal
focus on personal health and well-being. Without significant investments locally, our City and Region
could be unfavourably impacted while other communities emerge as leaders. However, our
community is uniquely positioned to leverage strengths in technology, data, talent, research, and
commercialization to play a unique role in the growth of health industry.
REPORT:
The Opportunity
The University of Waterloo, in partnership and collaboration with the City of Kitchener, is proposing
to develop a new, 90,000 square foot innovation facility focused on health innovation, medical
technologyand deep scienceon the UW Health Sciences Campus located in Kitchener's Downtown
Innovation District. The proposed facility would include:
Refurbishment ofa 90,000 square foot vacant warehouse already owned by UW on the
Health Sciences Campus;
The new home for UW’s Velocity program, Canada's most productive incubator,
expanding from their current size of 36,000 square feet;
Multi-use biosafety, clinical, instrumentation, product development and wet lab space for
SME’s, entrepreneurs and innovators;
Co-location with the Region of Waterloo's Small Business Centre to support health related
companies grow their business; and,
2 - 3
Co-location with various health related, interdisciplinary research from UW’s main
campus.
For additional informationon the opportunity see section 1.0 Executive Summary of the Business
Case in Appendix A.
Growth of the Health Industry
The health industry is poised for significant growth globally. Ontario is no exception. While COVID-
19 has put a spotlight on, and placed pressure upon our health system, our rapidly aging population
will put additional significant strain on health resources well beyond the pandemic. If today’s per
capita public health costs were to remain the same, health care costs could double by 2041. Already
today, the growth of the global health industry is outpacing overall economic growth.
As a result, our community has an opportunity to play a role in future growth of this industry by i)
supporting companies actively looking to capitalize on local, provincial and global growth; and ii)
supporting innovation and startups focused on providing a range of innovative health and medical
technology solutions.
For more detailed information, refer to section4.0 Economic Impact Analysis of the Business Case.
Local Need
The University of Waterloo (UW) Velocity lab located in Downtown Kitchener at the Tannery, has
been so successful it is operating at capacity while community users are being turned away. Local
industry stakeholdershave all identified the shortage of lab space in the region. Too often, health
innovators, startups and SMEs struggle to grow their businesses because building their own technical
infrastructure requires significant capital, distracting their resources from necessary growth functions,
such as attractinginvestment, increasingproduction and enteringnew global markets. Without such
facilities, our community will lose emerging companies and talent to other regions who can offer a
fully equipped functioning lab.
The expanded Health Sciences Campuswill provide health innovators, startups, scaleups and local
Small and Medium Enterprises (SME) the infrastructure, mentorship and resources they need to
succeed in today's competitive global economy. This proposal is a long-term investment in the
community’s future, providing a transformational opportunity to become a global leader in medical
technologyand life sciences for decades to come.
COVID-19 has reinforced that we need to become more self-sufficient locally, regionally and national
in health technologies and life sciences. The proposed facility and anticipated spin off growth would
drive local industry growth while strengthening Canada’s health care system.
2 - 4
The Importance of UW Velocity
Velocity is a leading entrepreneurship and incubator program at the University of Waterloo.
From idea to product development to commercialization, Velocity provides the knowledge, tools,
lab space, mentoring and network that startups, scaleups and entrepreneurs require for
commercialization and success. The Velocity Downtown Kitchener program located at the
Tannery, has evolved from software to hardware, and now med tech and deep science. UW is
recognized for their leadership in technology, entrepreneurship, programming, research
excellence and innovation.
Velocity benefits from UW’s intellectual property policy which remains creator owned, meaning
the entrepreneur/creator retains the intellectual property developed with the opportunity to
commercializetheir ideas, and is not owned by the University
The Velocity program has transitioned to focus on advanced technologies and deep science
companies emerging from extensive research, currently with 13 health tech and med tech
companiesand 26 deep science companies. Since 2016, Velocity affiliated companies have
raised $750M in investment, of which health tech companies have raise $68M. Since 2008,
overall Velocity programming hasincubated 400+ companies, with $1.3B in investment and
2,600+ jobs created.Over the first 5 years of the new facility, the University projects the following
outputs of health tech companies:
Startups:
Incubation of 50-75 high growth health tech start-ups
$20M in private sector investment
150-225 highly skilled jobs created
Scaleups:
Support for 50 health tech scaleups
$75M of private sector investment
500-600 highly skilled jobs created
Proposed Initial Capital Investment
The conversion of the warehouse includes both interior and exterior renovations, including new
HVAC, plumbing, electrical, ventilation, labs, exterior cladding and landscaping. Environmental
testing needs to be completed onsite. The conversion will adhere to environmental standards with
a LEED Silver Certification.The proposed agreement and funding would be structured as follows:
2 - 5
Total Capital Contribution – 280 Joseph St
Original Purchase Cost for 280 Joseph St $5M
Warehouse Conversion Costs$30M
Total Costs$35M
Proposed Funding
COK (25%)$8.5M
UW(33%) $11.5M
Senior Levels of Govt (42%) $15M
Total Funding$35M
The COK funding would be for25% of capital and outstanding construction costs payable
in quarterly installments over 5 years. UW would beresponsible for any cost overruns.
The project could be phased depending on the timing of external funding, however the
initial phase would be the build out of 45,000 sq ft and all of the lab space.
Partnership Details:
COK Investment:up to $8.5M
COKFunding:25% of Capital/Construction Costs incurred quarterly over a 5 year term
Operating Costs:$1.8M annually to be funded by UW
Facility Term:Minimum 15 years from completion of construction. Should the facility
cease to operate as an incubator/lab before the end of the 15 year term,
the City’s investment is to be repaid on a pro-rata basis
COK Space:5,000 sq ft to be provided to the City forthe Small Business Centre for
2 ten year terms. Common Area Maintenance Fees for the 5,000 sq ft
are to be shared equally between the City and UW
Operating Expenses:
Velocity Programing costs are the responsibility of UW
Small Business Centre is responsible for programming costs and 50% of Common
Area Maintenance Fees for 5,000 sq ft, expected to be $17,500 annually
2 - 6
Long-term Opportunity
Since the inception of the UW Health Sciences Campus, the Innovation District hasbecome an
epicentre of employment growth for our community. The proposed facility would onlyincrease
the viabilityanddevelopability of lands within the District, including increasing thevalue of
adjacent City-owned lands (Bramm Yards).For example, based on current zoning, the Bramm
Yardscould accommodate up to 650,000 square feet of new development. As noted in the
City’s Strategic Plan, staff will engage the community in a visioningexercise to develop a master
plan for the Bramm Yards.
Benefits for Residents
The proposed partnership and long-term opportunity providesa variety of benefits to the broader
community, including potential improvements to healthcare, new company and job growth,
increased tax assessment, and the overall growth of the City’s attractiveness and economic
competitiveness.
For a comprehensive list, see section 5.0 Community Benefits of the Business Case.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The proposed partnership delivers on a key action of the City’s Corporate Strategic Plan and
advances the community’s ambitions as identified inMake It Kitchener 2.0. For more information,
see section 6.0 Strategic Alignment of the Business Case.
FINANCIAL IMPLICATIONS:
The City’s proposed contribution would be up to $8.5 million from the Economic Development
Investment Fund 2.0(EDIF 2.0), provided over 5 years between 2022 and 2026. With the re-
issuance of debt for EDIF 2.0 to begin in 2022, sufficientcash flow will exist within the fund to allocate
to the proposed investment. The City’s contribution would represent 25% of the total estimated
capital cost of $35 million. The City would be provided 5,000 square feet of space for a 20 year
period, to be utilized by the Waterloo Region Small Business Centre. With the exception of the above
noted Cityspace, UW would be responsible for operating costs associated with the facility.
COMMUNITY ENGAGEMENT:
CONSULT AND COLLABORATE – Throughout 2019 and 2020, Economic Development staff
have been engaging stakeholders, the community and Council through a series of in-person
discussions, an online survey and idea board, a major community symposium – Ideas of the
Brave, advisory committee discussions,etc., with more than 950 total touch points.
Throughout this process participants scored investment in health innovation in the top quartile.
For the City’s Economic Development Advisory Committee, Health Innovation was identified as
their top recommended priority.
2 - 7
ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services Division
Appendix A: Business Case, University of Waterloo Velocity Health Innovation Partnership
Appendix B: Letter from the University of Waterloo outlining the partnership opportunity
2 - 8
OCT 28 2020
Make It Kitchener 2.0
Economic DevelopmentInvestment Fund 2.0
Business Case
University of Waterloo
VelocityHealth Innovation Partnership
2 - 9
Table of Contents
1.0Executive Summary......................................................................................................................... 2
2.0 Background....................................................................................................................................... 3
3.0 The Opportunity................................................................................................................................ 5
4.0 Economic Impact Analysis.............................................................................................................. 6
5.0 Community Benefits.......................................................................................................................10
6.0 Strategic Alignment........................................................................................................................ 12
7.0 Environmental Scan....................................................................................................................... 13
8.0 Capital and Operational Impacts.................................................................................................. 14
9.0 Conclusions and Recommendaitons........................................................................................... 16
BUSINESS CASE – KING STREET MASTER PLANPAGE
2 - 10
Executive Summary
1
Overview of the Opportunity
The Health Industry is poised for significant growth throughout North America, driven by three key factors: our ability to
respond to the COVID-19 pandemic; an aging population; and, a societal focus on personal health and well-being.
Without significant investments locally, our City and Region could be unfavourablyimpacted while other communities
emerge as leaders.However, our community is uniquely positioned to leverage our strengths in technology, data,
talent, research, and commercialization to emerge as a global centre for health innovation and medical technology.
The University of Waterloo(UW), in partnershipand collaboration with the City of Kitchener (COK), isproposing to
develop a new,90,000 square foot health tech and deep tech hub on the UW Health SciencesCampus located in
Kitchener's Downtown Innovation District. The proposed facility would include:
Refurbishmentof a90,000 square foot vacant warehouse already owned by UW on the Health Sciences
Campus;
The new home for UW’s Velocity program, Canada's most productive incubator expanding from their
current size of36,000 square feet;
Multi-use biosafety, clinical, instrumentation, product development and wet lab space for small and
medium-sized enterprises (SME’s), entrepreneursand innovators;
Co-location with the Region ofWaterloo's SmallBusiness Centre to supporthealth related companies
growtheir business; and,
Co-location withvarious health related, interdisciplinary researchfrom UW’s main campus.
TheUniversity of Waterloo Velocity lab located in DowntownKitchener at the Tannery,has been so successfulit is
operating at capacity whilecommunity usersare being turned away. UW, potential users,and the Medical Innovation
Exchange (MIX) - an organization of professionals and innovators in the medical technology industry - have all identified
the shortage of lab space in the region. Too often, health innovators, startups and SMEs struggle to grow their
businesses because building their own technical infrastructure requires significant capital.Withoutsuchfacilities, our
communitywill loseemerging companies and talent to other regions who can offerfully equippedfunctioning labs and
manufacturing space .
The expanded Health Sciences Campus will provide health innovators, startups, scaleups and local Small and Medium
Enterprises(SME) the infrastructure,mentorship and resources they need to succeed intoday's competitive global
economy. This proposal is along-term investment in the community’s future, providing atransformational opportunity
tobecome a global leader in medicaltechnologyand life sciences for decades to come.
The City’sproposed contribution wouldbe up to $8.5 million from the Economic DevelopmentInvestment Fund 2.0,
provided over 5 years between2022 and 2026. The City’s contribution would represent 25% ofthe total estimated
capital cost of $35 million. TheCity would be provided 5,000 square feet of leased spacefor $1 for a 20-yearperiod, to
be utilized by the Waterloo Region Small Business Centre. Except forthe abovenoted leased space, UW would be
responsible for operating costs associatedwith the facility.
With afacility of this nature, increased interest in the Innovation Districtwould be expected.This could include demand
for new development, the creation of new office space, and/or demand forexisting space. For example, the City owns
7.5 acres of adjacentlands (Bramm Yards)with the potential to accommodateup to 650,000 square feet of new
development. Subject to futurepublic engagement, visioning and a master plan, these lands could accommodateas
many as 4,000new jobs.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 11
Section
Background
2
2.1 Make It Kitchener2.0
Make it Kitchener 2.0, Kitchener’s Economic Development Strategy was approved by Kitchener Council onOctober 26,
2020.Throughoutthecommunity consultation process,health innovationwas identified as one of the key future growth
industries the communitywants to see new investment in.Health innovation is described as a leading industry within
the Impact Economy. The strategy envisions supporting ‘Difference Makers’ through the creationof spaces and
programs that enable entrepreneurs tostart, lead and scale new businesses.
2.2 UW Health Sciences Campus
In 2006, the City of Kitchener partnered with the University of Waterloo to establish the Health Sciences Campus in
Downtown Kitchener located in the Innovation District.The initial catalystproject was the University of Waterloo’s
School of Pharmacy supported by a $30M investment from the City of Kitchener, followed by the McMaster DeGroote
School of Medicine. A vacant 90,000 sq ft warehouse remained on the campus with the intent to expand and
repurpose the building over time.
2.3 UW Velocity
Velocity is a leading entrepreneurship and incubator program at the University ofWaterloo. From idea to product
development to commercialization, Velocity provides the knowledge, tools, lab space, mentoring and network that
startups, scaleups and entrepreneurs require for commercialization andsuccess. The Velocity Downtown Kitchener
program located at the Tannery, has evolved from softwareto hardware, and nowmedicaltechnology and deep
science.UW is recognized for their leadership in technology, entrepreneurship, programming, research excellence and
innovation.
Velocity’s objective is to become a global leader for healthinnovation with afocus on deep science and medical
technology companies.Deep sciencecompanies can be described as follows:
Life sciences/therapeutics/synthetic biology;
Medicaldevices, tools and diagnostics;
Materials science, industrials, cleantech; and,
Hardware & electronic devices.
Health/Medical Technology companies can be described as technology that can be used for health prevention
andin a care setting, which can includedisposables, equipment, surgicalprocedure innovations, implant
technology, biomaterials and connectedhealth IT. This includesall devices with which a patient can be
diagnosed ortreatedwith.
In 2016, the City of Kitchener invested $500,000 in the University of Waterloo’s Velocity program, asa means to
resolve theshortage of wetlab space in the region. The investment waspart of a doubling ofVelocity’s capacity to
36,000 sq ft in the Tannery. As a result of the increased wet lab space, more companies have emergedfocusing
health innovation.As companiestransition into med tech and deep science, thecomplexityof supports increase.
Incubation and scaling often require moreresearch which increasesdemand for lab space.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 12
Velocity benefits from UW’s intellectualproperty policywhich remains creator owned, meaning the entrepreneur/creator
retains the intellectual property developed with the opportunity to commercialize their ideas, and is not owned by the
University.
Velocity’s currentenrollment:
13healthtech and med tech companies
26deepscience companies
65total companies
Investment
$68M private sector investment in Velocity Healthtechcompaniessince 2016; and,
$750M private sector investment in all Velocity companies since 2016.
In 2019,Velocity, in partnership with the COK and Waterloo EDC, secured a $2million investmentfrom Perkin Elmer, a
leader in diagnostics, life science research and environmental and industrial testing. Perkin Elmer installed a $2M
demonstration lab at Velocity whichprovides the tools needed to understand the biological and chemical processes
behind building diagnostics, creating a new therapy, or understanding the performance of a medical device.
Community access is provided whenthe facility is available.
A sample list identifying company activities is outlinedon Schedule 1.
A list of companies that have participated in the Velocity program is outlinedon Schedule 2.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 13
Section
The Opportunity
3
Velocity labs are currently operating at capacity with no additional lab space available for community use. Medtech
and deep science companies take longer to incubate due to the complex research and testing required. Companies
andtalentare leaving ourarea forother regions that havelab capacity. Thisimpacts both, the growth of our local
industry, as well as our local supply chain. There remains ongoing demand forVelocity programming which had 61
applications for their fall 2020 intake, with only 10 companies accepted.
Health and Life Sciences research is conducted acrossthe University in all six faculties including, Faculty of Arts;
Faculty of Science; Faculty of Environment; Faculty of Engineering; Faculty of Applied Health Sciences;and,Faculty of
Mathematics. The opportunity to co-locate research in ashared space enhances opportunities for collisions and
collaborationbetween University departments.
The Current Opportunity – UW Velocity Health Innovation Facility
The City has anopportunity topartner with the University of Waterloo to expand theHealth Sciences Campus through
the repurposing of the vacant90,000 sq ft warehouse into a premier health innovation facility, driven by the Velocity
program, to provide incubation supportsto new, emerging and growing companies.
Thefacility couldinclude:
Wet labsfor chemicalandmaterials science;
Advanced Biosafety Level 1 Lab – companies work with low risk biological materials for development
work for new therapies, DNA work and cellular engineeringto create new bioproducts;
Three Biosafety Level 2 Labs– support work in the development of gene therapies, biologics, and tissue
engineering. As only one activitycan occurat a time, multiple labs increasethe number of companies
that can be supported;
Clinical Simulation Suite- validation and non-clinical testing of health technologies in a replicated hospital
room.Practitioners willinteract with companies to acceleratealignment of product and clinical
development;
Universal Product Development Space – flexible space to support product development for hardware
and electronics, and additive manufacturing (3D printing);
Shared Instrumentation Space - workshop housing tools used in analyzing biological and chemical
properties;
Small Business Centre – 5,000 sq ft of co-location space for entrepreneurs focussing on health and life
sciences
UW interdisciplinaryco-location and collaborations
The Future Opportunity – City’s Bramm Lands
Through theCity’s Corporate Strategic Plan, City Council has directedstaff to engage with the community on the
development of a vision and master plan for the adjacent Bramm Yards. The proposed facility would significantly
increase the viability, developability andvalue of the Bramm Yards. Based on current zoning,the site could
accommodate up to 650,000 square feet of new developments.City staff will work with stakeholders and the
community to identify a preferred vision for the site, which could include new office space for health innovation
companies.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 14
Section
EconomicImpact Analysis
4
The following provides an overview of the anticipated economic impacts which could be achieved throughthe proposed
Health Innovation Facility.
Projected Growth of the Health Industry
The health industry across North America is expected to experience significant growth over the next 10 to 20
years,driven largely by threeforces: an aging population, response to the current pandemic, and greatersocietal
awareness of the importance of health, preventativehealth and wellbeing. According to the World Health
Organization, the health sector is expanding faster than the economy. Global health spending rose 3.9% a year
between2000and 2017, while the overall economygrew by 3.0%.In 2017, global health spending was
estimated at $7.8 trillion.In 2017, public spendingrepresented60%of global spending.
Source: World Health Organization; Global Spending on Health: A World in Transition, 2019
To understand the local impact of our aging community, consider that if per capita health care costsremain
constant, Kitchener’s growing population aged65+ wouldincrease local health expenses by $356million by
2041:
Sources: Region of Waterloo population forecast (Kitchener provisional allocation, moderate forecast), Canadian Institute for
HealthInformation, National Health Expenditures Trends 1975-2018
Notes: Health spending was estimated based on 2016 per capita costs by age, not adjusted for inflation. Figures assume per
capita spending will remain constant.
The Need for Innovation
According to Deloitte’s 2020 Global Health Care Outlook, the health care sector will bechallenged to achieve
financial sustainability by reducing the cost to deliver services. Atthesame time, patient/customer expectations
continue to rise with greater demand for real-timeand expedient care and diagnostics. As a result, innovations
in care models through digital technologiesand data sharingare necessaryto achieve both outcomes.Given
the regionand University’s historyof technology innovation, the proposedfacility would position our region as a
future leader in the advancement of health innovation and medical technology.
Regional Comparisons
Post-secondary institutions in Waterloo Region graduate morethan 4,000 students each year in health-related
fields. However, our communitylags behind London, Hamilton and Kingston inemployment. For example,
between 2017 and 2018, employment in health-related occupations in Waterloo Region only increased by 510.
This suggests that85% of local graduatesfind work outside of our region.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 15
Median Hourly
Region2017 Jobs2018 JobsChange% Change
Wages
Kitchener--
Cambridge—
14,59615,1065103%$29.58
Waterloo
Hamilton26,15427,2991,1454%$29.63
London21,17121,7435723%$28.69
Toronto160,238167,1956,9574%$30.23
Guelph4,3114,4831724%$30.14
Ottawa—
41,77642,9441,1683%$30.15
Gatineau
Kingston8,1298,5384095%$30.52
Barrie5,7386,0112735%$30.23
Sources: EMSI Q3 2019 Data Set comparing 4 Health Occupations, October 2019
According to projections utilizing the Ministry of Agriculture,Food and Rural Affairs’ analyst tool, without
intervention, it is expected that these neighbouring cities will continue to experiencedisproportionate growth in
health employment while Waterloo Region willlag behind even further. As a result, two negative outcomes are
likely. First, Kitchener’s growth in health industry employment will be disproportionatelylower than provincial
growth rates.Secondly, Kitchener residents may not be ableto find the specialized care they need locallyand
may have to travel to other communities to receive it.
Notes - Larger bubbles represent larger industries. A Location Quotient (LQ) of >1 represents a regional strength, suggesting a strong presence of companies
exporting products and services.
Source: EMSI 2019.3. Data were obtained through OMAFRA’s Analyst tool for economic development
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 16
Small Business Centre Activity
Thenumber of health-related businessconsultations (not including inquiries)atthe Waterloo Region Small Business
Centrehas increasedby 275%over thepast two years. Staff note that the increase isdueto growing consumer
demands for well-being, wellness and para-medical services:
YearConsultations
201820
201942
2020(Q1-3)74
Sources:Waterloo Region Small Business Centre
Growth of Local Health Industry During the COVID-19 Pandemic
According to theWaterloo Economic Development Corporation,as many as 90 local companies adaptedtheir
operations to providePersonal Protective Equipment for Canada’s battle with the Coronavirus. This includes
manufacturing of respirators, surgical masks, sanitary wipes, face shields, etc. The almost instantaneous pivoting of
the local industry demonstrates our region’s ability to adapt manufacturing and technological know-how to advance
growth in new industries.
Impact ofthe University of Waterloo’s Velocity Program
Velocity, the University of Waterloo’s flagship entrepreneurship program and Canada’s most productive incubator, is
seeinggrowth in the number ofhealth tech and deep tech companieslooking to build scaling companiesready to take
on global challenges. Since 2008,all Velocityprogramminghas seen:
400+ companies incubated
$1.3B in investment collectively
2,600+ jobs created
Over the first 5 yearsof the new facility, the University projects the following outputs of health tech companies:
Startups
Incubation of 50-75 high growth healthtech start-ups
$20Minprivate sector investment
150-225 highly skilled jobscreated
Scaleups
Support for 50health tech scaleups
$75M of private sector investment
500-600 highly skilled jobscreated
University of Waterloo’s Total Economic Impact
Over the last 10 years, UW Entrepreneurship Programshave created over 7,500 jobs,generating revenue of $2.3B.
In 2018-2019, UW researchcontributed$458M to Ontario’s GDPwhile Velocity and the Accelerator Centre contributed
$170M to Canada’s GDPandcontributed$80M to the Region of Waterloo’s GDP.
Interest from the Province of Ontario
Medtech and health innovation are receiving significantlymore profile and attention from the Provincial Government.
At an October 13WaterlooRegion roundtable, Minister of Economic Development, Job Creation and Trade, Vic Fedeli
indicated that Waterloo Region’s established tech ecosystem positions the area to be a major player in helping Ontario
strengthen its medtech and personal protective equipment industries.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 17
Adjacent City-Owned Lands
The City ownsapproximately7.5 acres of land directly adjacent to the proposed site. Based on currentzoning, said
lands could accommodatein excess of 60,000 square metres (650,000 square feet) of newdevelopment. Depending
on the ultimate development of these lands, they could generatenewproperty tax revenuesand new office space for
employment.The sale of these lands could be utilized for future catalytic investments, as per MakeIt Kitchener 2.0.
The proposed facility shouldenhance the value of these lands.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 18
Section
Community Benefits
5
In addition to the potential economicopportunities identified in section 3, the proposed Health Innovation Facilitycould
also help produce the following community and social benefits:
Improvements to Healthcare – innovations driven from startups and researcherswithin the facility shouldultimately
lead to health care improvements for local residentsand beyond. This could include, butnot limited to,improvements
to acutecare, an enhancedpatientexperience, enhanced care services, etc.
Innovation District – theCity’sInnovation District is already an epicenterof innovation, with the presence of the
Communitech Hub, Schools of Pharmacy and Medicine, Google’sCanadian Engineering Headquarters, and many
established and growing technology companies. Adding a facility of this nature, with a long-term goal of building an
urban business park focused onhealth innovation, would only strengthen the District’s role asa majorhub of innovation
in Canada.
Continued Growth of Post-Secondary Presence in Downtown Kitchener – thenew facility would add to the
existing community of post-secondary institutions,including the UW Schoolof Pharmacy, McMaster School of
Medicine, WLU School of Social Workand the Conestoga College Downtown Campus.
NewCompanies, Diversification & Competitiveness – as has been evident by spinoff company growth from the
current Velocity facility and the Communitech Hub, the proposed facility will incubate new companies which, upon
graduationfrom theprogram,willrequire permanent office space throughout the community. It is likelythat many
companiesmay choose to remain Downtown. This in turn will lead tofurther diversification ofour employment base,
greater competitivenesswhen attractingcompaniesand talent, and overall increases to the local tax base.
Partnership Opportunities – a central facility of this nature would create opportunities to foster partnerships between
the region’svarious health focused stakeholders, includingthe UW School of Pharmacy, McMaster’s Degroote School
of Medicine,GrandRiverHospital, Waterloo Med Tech, etc.UW hasa variety of strategic projects underway with the
local hospitals which would benefit fromco-locationand the clinical simulation suite.
Toronto-Waterloo Innovation Corridor – as the proposedfacilitywould be locatednear key trail connections and
within walking distance of the future multi-modal transit station, connections between Kitchener, Guelph, the GTA and
downtown Toronto should increase. Particularly should connections form between companies, researchersand
practitionersalong the corridor, health care companies inToronto, for example, may look to Kitchener as a potential
source of startup talent, mergers or acquisitionsorvice versa.
evitalization – increased presence and numbers of companies, employees, researchers, etc., will lead to
ContinuedR
additional demand for residential development, furtherboost investor confidence and draw new businesses at a much
faster rate.
Access forSmall Businesses – by providing co-location space for the Region of Waterloo's Small Business Centre,
local health related companies would have increased accesses to supports and tools togrowtheir business. These
companies will have the opportunity to collaborate with startups, scaleups, mentors and lab space.
Diversity - UW isfocused onimproving entrepreneurship diversity and, based on trends, expectsat least 30-40%
female founders forstartups and scaleups.The proposed 5,000 square feet of space to be programmed by the Small
Business Centre would enable the City to ensurethat a broad range of businessesand entrepreneurs are able to
access and utilize the facility.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 19
Talent Attraction – this facility shouldassist in the retention of talent, particularly students of the Velocity program, who
may otherwise move to other communities after graduation.
Business Retention – this facilityshould enable the retention of companies within the community, creating new
employment, innovation, advancing the ecosystem, the supply chainand growing our GDP.
Global Brand – afacility of this scale wouldgarner recognition asa globalhealth innovation centre which attracts
globalcompanies and talentfrom outside of Kitchener and Waterloo Region.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 20
Section
Strategic Alignment
6
The proposed partnership and investment in the UW Velocity Health Innovation Facilityalignswith the following
strategicpriorities of the City of Kitchener:
City of Kitchener Corporate Strategic Plan – The City’s strategic plan sets a vision for building “an innovative, caring
and vibrantKitchener”. A key pillar of the strategy is a‘Vibrant Economy’, where the city will make strategic
investments to support job creationandeconomicprosperity.Under this pillar, Council identified the following strategic
action:
3.2Foster the creation of a city-wide network of incubators, accelerators and co-working spaces by
completing the buildout of 44 Gaukel in 2019, advancingwork on a Creative Hub and undertaking
business cases in 2019-2021 for the food manufacturing and health/med-tech industries.
Theproposed Health Innovation Facility woulddirectly implement a component of action 3.2.
MakeIt Kitchener 2.0 – Health innovation is a core industry of the ‘Impact Economy’ and a major theme of Make It
Kitchener. The proposed Health Innovation Facilityhelps achievethe ambitionof creating leading facilitiesfor
entrepreneurs to advance health and med-tech innovations. As a startup incubator, and through the proposed
partnership with the Waterloo Region Small Business Centre, the proposed facilityprovides key infrastructure, space
and trainingto enable ‘Difference Makers’.The proposed location on Joseph Streetwould elevate the strategic
importance and value of the City’s adjacent lands (Bramm Yards), which is subject to future community visioning and a
master plan.
The introduction of City-leased space within the proposed facility would enable entrepreneurs, small business owners
and differencemakers to access a facility which they otherwise might not be able to, and to contributeto, and benefit
from, collocation andcollaboration.
United Nations Sustainable Development Goals – Theproposed Health Innovation Facilityalignswith the following
goals:
3. Good Health & Well Being
8.Decent Work & Economic Growth
9. Industry, Innovation andInfrastructure
City’s Official Plan – the proposed facility is located within the City’s Innovation District. The Official Plan identifies this
area as providing a dense urban setting with the presence of high-tech and health sciences related office uses including
new post-secondary and research relateduses. The conversion of former industrial buildings to new uses is
encouraged.
University of Waterloo StrategicPlan – the University’s strategic plan (2020-2025) identifies asignature commitment
to lead globally and nationally at the interface of society, health and technology.They imaginethis happening by
establishing an interdisciplinary institute that builds on Waterloo’s academic and research strengths in technology as
well as the determinants of health. By 2025, the University is committed to aligning theirresearchstrengths deliberately
with important globalchallenges such as health technologies.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 21
Section
EnvironmentalScan
7
Theproposed health innovation facility wouldoffera unique focus relative to other health incubation and accelerator
facilities, such as the following:
Ontario/Canada
MIX by Intellijoint - Located in Kitchener with 30,000 square feet with a state-of-the-art lab, manufacturing facilities and
collaborative office space to provide a space for local healthcare professionals and smaller Health Tech focused
companies. The goal of MIX is to connect the Medtech community both locally and globally by creating a collision
space for members to share expertise, leverage experience, and achieve scale.
McMaster Innovation Park (MIP) - MIP run by McMaster Universityin Hamilton's West end currently spans 700,000
square feet with plans todevelop a recently acquired six-acre property that will add an additional 1.8 million square feet
of space geared towards mid-market life sciences companies. MIP is alignedwith the research priorities of McMaster
University and aims to act as a bridge between academia and industry.
MaRS- Located in downtown Toronto with 1.5 million squarefeet of office, lab, meeting, and event space aimed at
small and mid-sized companies. MaRS Health aims to support companies and institutions that are focusing on health
solutions, streamlining the healthcare system, and improving patient outcomes with thegoal of bolstering the health
economy and helping people enjoy longer, healthier lives.
Biomedical Zone - Located within St. Michael’s Hospital at the Keenan Research Centre in downtown Toronto. This
physician led, hospital-basedhealth technology incubator is a partnership between Ryerson University and St.
Michael’s Hospital. Aims to create scalable sustainable healthcare solutions with global reach.
Global/UnitedStates
The Engine - Run by Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts with 25,000 square
feet of office, lab, and maker space. The goal is to provide access to the specialized labs, equipment, tools, and space
necessary to build transformative technologies. Run by MIT in partnership the leading academic andresearch
institutions in the state.
University Park at MIT – Located in Cambridge Massachusetts,this mixed-use development comprises office and
laboratory buildings thatare home to health innovation companies adjacent to MIT’s maincampus. As a comparable
urban office park, its goal is to foster technology transfersamong university students and researchersto the private
sector.
Global Center for Medical Innovation (GCMI) Medical Incubator - Located in midtown Atlanta GCMI’s MedTech
incubatoris made up of multiple facilities with 44,000 square feet of labs, operating rooms, and office space. Aiming to
provide the tools, space, facilities, support, and ecosystem necessary for early stage MedTech companies to succeed.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 22
Section
Capitaland Operational Impacts
8
8.1Initial Capital Investment
The conversion ofthe warehouse includes both interior and exterior renovations, including new HVAC, plumbing,
electrical, ventilation, labs, exterior cladding and landscaping. Environmental testing needs to be completed onsite.
The conversion will adhere to environmental standards with aLEED SilverCertification.
CapitalCosts
The proposed agreement and funding would be structured as follows:
Total Capital Contribution – 280 Joseph St
Original Purchase Cost for 280 Joseph St $5M
WarehouseConversion Costs $30M
Total Costs $35M
Proposed Funding
COK(25%) $8.5M
UW(33%) $11.5M
Senior Levels of Govt(42%) $15M
Total Funding $35M
The COK funding is25% of capital andoutstanding construction costs payable quarterly over 5 years.
UWis responsible forany cost overruns.The project could be phased depending on the timing of external
funding, however theinitial phase would be the build out of 45,000 sq ft and all of the lab space.
Timing:
2021: Design, Tendering, Site Plan
2022-2023: Interior and Exterior Construction
2023-2024: Lab fit out
Partnership Details:
COK Investment: up to $8.5M
COK Funding:25% of Capital/Construction Costs incurred quarterlyover a 5 year term
Operating Costs:$1.8M annually to be funded by UW
Facility Term: Minimum 15 years from completion of construction. Should the facility cease to
operate as an incubator/lab before the end of the 15-year term, the City’sinvestment
isto berepaid on a pro-rata basis
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 23
COKSpace:5,000 sq ft to be provided to the City for the Small Business Centre for two 10-year
terms.Common Area Maintenance Fees for the 5,000 sq ft are to be shared equally
between the City and UW
The City of Kitchener will support the University of Waterlooto secure the $15.5M in additional fundingfrom external
sources such as donors, Fedev and the Province of Ontario. The City has been successful in leveraging strategic
investmentsas follows:
Communitech: COK $500K investment in 2010has resultedin $300M by various levels of
government
o Velocity: COK500K investment in Velocity lab in 2016 resulted in:
Perkin Elmer’s $2M lab investment
Fedev:$2.2M in new fundingfor Velocity
8.2 Operating Expenses
UW Velocity Programming:
Operating costs are expected to be $1.5M annually and are the sole responsibilityof UW.
Small Business Centre
5,000 sq ft will be provided lease free for two10-year terms.
Responsible for Common Area Maintenance Fees (CAM’s) which include hydro, gas, water,
maintenancefor 5,000 sq ft, shared 50% with UW. Estimated costs for COK are $17,500 annually
The Small Business Centre willbe responsible for programming expenses.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 24
Section
Conclusions
9
Based on the foregoing,staffconclude the following:
The global health industry is poised for tremendousgrowth. Significant investments, such as the proposed
Health Innovation Facility, arenecessary to ensure our community can emerge a leaderandnot just benefit
from growth opportunities ahead;
Given the anticipatedpressures on the Provincialhealth system, resulting from the pandemic andthe aging of
our population, new innovations toall aspects of the health system will be necessary;
Our community’s opportunity within thebroader health ecosystem will be throughtechnology and innovation;
The proposed facility willincubate new health innovation companies at a larger scale than the current facility
allows. It willalso enable greater collaborationamong startups, researchers, the existing industry, small
businesses,practitioners and other keylocal stakeholders;
The University of Waterlooand the Velocity program, are internationally recognized as a leader in innovation
andjob growth;
The proposed facilitywould enhance the viability of new development onthe adjacent Bramm Yards;
Together, the current UW Health Sciences Campus, proposed facility and future business park can create a
leadingcentre for Health Innovation, where many of the innovations developed stand to benefit local health
services; and,
In doing so, the proposed partnership wouldadvance the City’s strategicobjectives contained in boththe
Corporate Strategic Plan and Make It Kitchener 2.0, providing significant long-term value for residents.
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 25
Schedule 1 -Sample Description of Velocity Companies
AVRO - Lifesaving therapeutics are prevented from reaching market or seeing maximum uptake due to the manner in
which they are delivered. AVRO Life Sciences has developed a one size fitsall transdermal drug delivery platform
capable of serving as a vehicle for awide range of drugs and doses, while increasing the scope and amount of what
can be delivered through the skin with similar pharmacokinetics (drug absorption) to pills and IVs.
LSK (Life Sciences Key Technologies) - A technology inspired by the Zika virus crisis,Life Sciences Key Technologies
(LSK) is now helping the world cope with COVID-19. With an aim to decentralize healthcare diagnostic testing, their
portable diagnostic device, PLUM,candiagnose viral diseases on the spot, even in remote areas.
Schedule 2
Deeptech, Med tech Companies Launched/Incubated by Velocity
Note: dozens of software and marketplace companies continue to be launched and supported by Velocity.
CompanyStatusCurrent LocationHealth Tech
PressionLaunchedWaterloox
Hedgehog MedicalVelocity IncubatorKitchenerx
CuriatoLaunchedWaterloox
Pear DiagnosticsLaunchedTorontox
Voyage LabsLaunchedKitchenerx
Vena MedicalLaunchedKitchenerx
PerennialLaunchedLos Angelesx
Penta MedicalLaunchedKitchenerx
HelpWearLaunchedTorontox
Amina HealthLaunchedKitchenerx
Acorn BiolabsLaunchedTorontox
SuncayrLaunchedMississaugax
Nicoya LifesciencesLaunchedKitchenerx
ExVivo LabsLaunchedKitchenerx
ThereaphageVelocity IncubatorKitchenerx
MediphageLaunchedTorontox
ClearVoxel ImagingVelocity Incubator Kitchenerx
StabiloVelocity IncubatorKitchenerx
OcuBlinkVelocity IncubatorKitchenerx
A-Line OrthopedicsVelocity IncubatorKitchenerx
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 26
GravityVelocity IncubatorKitchenerx
Qidni LabsVelocity IncubatorKitchenerx
MembioVelocity IncubatorKitchenerx
Avro LifeScienceVelocity IncubatorKitchenerx
NerVVelocity IncubatorKitchenerx
Serenity BioworksVelocity IncubatorKitchenerx
Elucid LabsLaunchedMississaugax
MicromensioVelocity IncubatorToronto/Kitchenerx
Life Sciences Key TechnologiesVelocity IncubatorToronto/Kitchenerx
Aurora Quantum TechnologiesLaunchedOttawa
Salient EnergyLaunchedHalifax
UpgrainLaunchedToronto
LabsCubedLaunchedKitchener
QuantWaveTechnologiesLaunchedWaterloo
Sci-BotsVelocity IncubatorKitchener
LumotuneLaunchedKitchener
NanophyllLaunchedHamilton
AlchemyLaunchedKitchener
Pegasus AeronauticsLaunchedWaterloo
LabforgeLaunchedKitchener
Borealis WindLaunchedWaterloo
GroboLaunchedWaterloo
MonogramLaunchedKitchener
Smarter AlloysLaunchedWaterloo
TritonWearLaunchedMississauga
VolteraLaunchedKitchener
AcertaLaunchedKitchener
EmbarkLaunchedSan Francisco
AvidBotsLaunchedKitchener
NorthLaunchedKitchener
Traject SportsVelocity IncubatorKitchener
TelicaVelocity IncubatorKitchener
EvercloakVelocity IncubatorKitchener
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 27
DropLabVelocity IncubatorKitchener
AgriseaVelocity IncubatorKitchener
StacktronicVelocity IncubatorKitchener
Brink BionicsVelocity IncubatorKitchener
NanoCNETVelocity IncubatorKitchener
Pulse IndustrialVelocity IncubatorKitchener
BlueLion LabsVelocity IncubatorKitchener
IntelineVelocity IncubatorKitchener
WatFlyVelocity IncubatorKitchener
NanoQuanVelocity IncubatorKitchener
AryllaVelocity IncubatorKitchener
H2NanOVelocity IncubatorKitchener
IcspiVelocity IncubatorKitchener
Halion DisplaysVelocity IncubatorKitchener
BUSINESS CASE – UNIVERSITY OF WATERLOO HEALTH INNOVATION FACILITYPAGE
2 - 28
Tuesday, October 27, 2020
Dan Chapman,
Chief Administrative Officer, City of Kitchener
200 King Street West
Kitchener, ON
N2G 4G7
Dear Mr. Chapman,
Request for Partnership in the Innovation Buildingat the University of Waterloo’s Health
Sciences Campus in Downtown Kitchener’s Innovation District
Please accept this letter as a request for partnership between the University of Waterloo and the
City of Kitchener. The University of Waterloo has the opportunity to develop a 90,000 square
foot warehouse at 280 Joseph St. on the Health Sciences Campus in Downtown Kitchener and
requests to partner with the City of Kitchener on this important development.
The University of Waterloo and the City of Kitchener share a closely aligned vision for the
future of downtown Kitchener. The University’s 2020-2025 Strategic Plan upholds a signature
commitment to lead globally and nationally at the interface of society, health and technology.
Make It Kitchener 2.0, the City’s 2020 Guide to Economic Recovery & Growth, likewise
identifies health innovation as a key pillar, noting that “our community is ideally positioned to
establish a unique foothold in the health industry, by leveraging our strengths in technology,
data, communications, manufacturing and medical devices to emerge as a centre for health
innovation and medical technology.” This shared vision to create a health innovation and health
tech hub in Kitchener’s Innovation District offers an opportunity to drive economic growth with
a forward-looking approach that also serves to attract and grow health innovation companies and
jobs in the region.
The University of Waterloo plans to use this space for to expand Velocity, Canada’s most
productive incubator, into a 45,000 square foot space, complete with a wetlab, four advanced
biosafety labs and a clinical simulation suite. These highly specialized lab spaces build on a
visionary 2016 City of Kitchener investment into the original Velocity space at the Tannery,
which established a unique wetlab that has attracted numerous startups to Velocity and to the
region. The rest of the space will be used for interdisciplinary researchat the University’s Health
Sciences Campusand as collaboration space for entrepreneurs, researchers, students, and
community partners.
I
t is our hope that the City of Kitchener will be our first partner in this importantnew
opportunity. At the meeting of the University’s Board of Governors’ on October 27, the board
approved the recommendation of the Building and Properties Committee to proceed with the
2 - 29
finalization of the details of this partnership opportunity. Our shared vision will be
transformative as we work together to drive economic growth in the region.
Thank you,
Sandra Banks
Vice-President, University Relations
University of Waterloo
2 - 30