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HomeMy WebLinkAboutBusiness & Ind - 1996-06-13BIAC\1996-06-13 BUSINESS AND INDUSTRY ADVISORY COMMITTEE MINUTES THURSDAY, JUNE 13, 1996 PRESENT: Mike Hiscott (Chah'), Carl Zeht; Elliott Currie, Jeff Morris, Dan Beach, David lqYeure, l,inda lGeswetter, Susan McConnelL Elliott Currie, Councillor Chtqstina Weylie, Councillor Tom Galloway, and Klm Cowan ALSO PRESENT: Mayor Richard Christy, Valerie Gibaut~ Jane Jantzi, John Whitney, Beth ChHstensen and Karl Innan RECORDER: Sandy Curzon Carl Zeht; acting Chah' tnla'oduced John Whitney, Beth ChHstensen and Karl Innan of Whitney & Company. Market "Insite" - John Whitney & Company John Whitney presented an overview of the real estate market as it relates to: a) Land sales reviewed sales du~4ug the past 15 years design to build seems to be the current la'end Toyota expansion - good for the area - companies are relocating - Johnson Conla'ols an example of relocation due to Toyota conla'act~ BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES b) c) Industrial Market vacancy rate in 1994 was under 10% vacancy rate in 1996 is 9% and dropping existing buildings can be purchased for $30-$35 sqft versus building which is $40-$45 per sqft local demand has tapered off rental rates are increasing significantly challenge is what to do with functionally obsolete buildings Office Market currently in turmoil Kitchener's downtown not per[orming as well as Cambridge and Waterloo 3L000 sq.f~ of office space has been leased or sold resulting in a drop in the vacancy rate from 35.6% to 33% in comparison Cambridge downtown vacancy rate is 1S% and Waterloo 13% office building owners in downtown Kitchener are (h'opping rental rates dramaticaHy PIq~dential Centre was purchased for $10./sq. ft~ recommendation from ~Vh'. Whitney that we review the zoning in the Business Parks to expand the uses to enable us to be competitive with our neighbours~ Retail Market vacancy rate is at 5.9% for Kitchener compared to 5.6% in Cambridge and 3.8% in Waterloo. site/location (hqven Market Square sold for $15/sq. ft~ which will take the new owners 3-5 years to see any return on theh' money Forecast for '96- haven't hit bottom yet~ still room for adjustment Economic Development Division June 13, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES e) Multi Residential Market off-shore investors have expressed an interest in this area in '93 the vacancy rate was 5.670 today the vacancy rate k at 9.970 average rental increase k at 3.S70 strong demand for buildings fewer distress sales condo properties will be in short supply in the future Minutes of May 9, 1996 Minutes of May 9, 1996 were approved and adopted B. Stanley will appear before Committee on August 8th with his &'aft letter for review. ~VL Hiscott and D. lqYeure left the meeting 3. Terms of Reference Committee were presented with the following resolutiog "That the Terms of Reference for the Business and Industry Advisory Committee be amended to reduce the number of members from the business community at large from 8 to 6 members and to appoint 1 representative from the Visitor and Convention Bureau and 1 representative from the Kitchener Downtown Business Association" This change will take affect when electing the 1997 Business and Industry Advisory Committee. 4. Canada's Technology Triangle Restructuring V. Gibaut gave Committee an update on the Cl~ rest~ctu~qng proposal prepared by David Creech, CAO, City of Guelp]~ CT~ has been in existence for 10 years, it was felt that time had come for rest~q~ctu~qng to market the cities of Kitchener, Waterloo, Cambridge and Guelph in a more pro-active way. The rest~q~ctu~qng proposal recommended the following: Fall of '96 - form a Cl~ Board which will be composed of Mayor, CAO, and private sector representatives from each municipality, with a sub-committee made up of Economic Development Division June 13, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES Economic Development Officers from each city Winter of '96 - develop a detailed strategy and action plan for 1997 and 1998 January '97 - develop a joint marketing plan and budget with cont~qbutions from each municipality and private sector Sp~4ug of '97 - recruit key business people from each municipality and hire full time resources to run a CT~ Board office. German Twinning At Planning and Development Committee on June 10th, it was recommendeck "That staff be dh'ected to pursue an economic alliance with the City of Karlsruhe in the Baden-Wuttemberg State in Germany and further, "That staff of the Economic Development Division be requested to quickly develop a marketing plan to penetrate the German investment markeb" V. Gibaut had made arrangements for Bill Waite former PI'esident and CEO of Siemens Elect~qc Lt& to make a presentation to Planning and Economic Development Committee in support of the partnership of Kitchener with Karlsruhe, Germany. She indicated that John Tibbits of Conestoga College, the Universities of Waterloo and Will~qd Laurier also provided letters of support~ Twinning with Germany has beeen under consideration for several years~ It is felt that there will be several economic benefits to Kitchener as a result of the establishment of business relationships in Germany. Valerie explained that with any twinning exercise constant attention is required in order to keep the interest level hig]~ The next step is to approach the Mayor of Karlsruhe and ask if they are interested in this venture. Mayor Chiqsty asked Committee to provide names of local companies that they may know of who would be interested in investing in Germany. 5. Economic Development Activities Economic Development Division June 13, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES b) c) e) CYF 9000 - Bell Canada has tabled theh' final offer and is waiting for a decision from the pubhc sectors- municipahties and school board~ Adaptive Reuse Symposium - objective was to select old indust~qal buildings in the downtown core and put them on display in order to lure potential investor~ Approximately 150 were in attendance which consisted of local and external investors, developers, cont,'actors, realtors, lawyers, etc. It was a very pro-active step by the City. Staff discussed potential land sales for Phase HI, Huron Business Park in caucus with Committee. Staff are in receipt of two offers to purchase which will go to the Planning and Economic Development Committee on June 94th and to Council July Review of Recent Land Sales Jenson Technology l:q'emier Machine & Tool Highland Metal MSD Machine Elocab - option to purchase Review of Extensions Berkqhire Building Corporation Leenan l:q'operties Strgar Tomac - want City to repurchase Joe Sukolo - extend building option Committee discussed options with respect to the extensions, however no recommendations were made. Economic Development Division June 13, 1996. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES 5. Other Business Newsletter - Conestoga College students are prepa~qng the Summer issue which will be available July 1st. b) Green on the Grand- Ian Cook is conside~qng building a second building. Currently owns 9 sites close to the 401 that he wants to exchange with the City. Committee was in receipt of his proposal which will be tabled at the meeting of July llt]~ Meeting adjourned 1:00 pm Next Meeting: Thursday, July 8, 1996 11:00 am - 1:00 pm City of Kitchener, Council Caucus Room City Hall, ~nd Floor Future Agenda Items July llth: - lan Cook PI'oposal - Peter Benninger - Huron Business Park Survey August 8th: - Brock Stanley - ch'aft zoning letter Economic Development Division June 13, 1996.