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HomeMy WebLinkAboutBusiness & Ind - 1997-08-13BIAC\1997-08-13 Business and Industry Advisory Committee Minutes Wednesday, August 13, 1997 Present: Carl Zehr (Chair), L inda Kieswetter, Mike Hisco~ Denise Strong, John Hoffman, Dan Beach, Jeffrey Morris, Councillors Berry Vrbanovic and Tom Galloway, John Bingeman, and Valerie Gibaut Also Present: John McKenzie representing Conestoga College, Don Eastwood for C1WAN, and Larry Wolynetz representing Huron Woods Development Recorder: Cristine Kao 1. CTTAN (CTT Accelerator Network) Presentation Don Eastwood, F~xecutive Director of C1WAN made a brief introduction of C1WAN. C1WAN was fhst formed as C1WAN Circle in 1996 comprised of University, Business and Government member in the C1W area and then officially launched in April 1997 with five- year funding by the Federal Government. Its mission is seeking "to facilitate and accelerate the matching of risk capital to the needs of growth-oriented fh~ns located within Canada's Technology Triangle". However, if an opportunity arises in the surrounding area~ C1WAN would also be intereste& The Board of Directors is chaired by John Bell, and others include Clare Davenport~ Charles Greb, John Griggs, Ken Hammill, Doug Montgomery, and I~'. Bill Winegard whom all have extensive networking in the C1W area~ Others that are involved in C1WAN Circle include Ted Cross, Paul Flemming, I~'. Bruce Fournier, Jeremy Gawen, I~'. Carolyn Hansson, Doug McKenzie, Dan Plqngle and Gerry Sullivan provide leadership to the Committees of C1WAN. Other than the Federal support~ C1WAN is also supported by four of the major chartered banks, four major accounting fh~ns, several major law fh~ns, lflb insurance companies and C1W member municipalitie~ C1WAN recognizes some of the impediments with the growth oriented fh~n~ Community of capital providers for early stage capital not well identified; Growth oriented fh~ns not "investment ready"; Poor network to facilitate the matching process; Transaction cost of early stage capital placement~ Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES These impediments overall generalized as the "Love-Venture Capital Gap". Love indicates the individual entrepreneur's own resource and the investment from the investors also known as "angels". C1WAN had ah'eady developed some procedures to ad(h'ess this gap by developing Idea & Entrepreneur attraction, mentor programs, private investor attractio~ C1WANVs Action Plan also include: Improving Investment Refnlines~ through increasing inventory of companies and technologies, prescreening process through project team review, and making entrepreneurs aware of investors needs; St~ctu~qng Access to Capital by identifying sources of risk capital structure an investor network, allow for syndication opportunities and integrate with other community initiatives; Management Skills Suppo~ by developing a roster of mentor/advisors to participate in project review process, and series of support services and on-line courseware to assist both the entrepreneurs and investor~ Since its launch in Ap~4L C1WAN ah'eady has made some achievements including broadening of the mentor network across the C1W region, and RS project files have been opened, 10 of which are active investment opportunities under development A web site k ah'eady under development for easier access to inlbrmation, plus public ~minars to ad(h'ess entrepreneur and investor development issue~ D. Eastwood encourages the private sector's involvement because this will increase corporate profile, gain early access to pool of investment-ready companies, the fh~n will also have an opportunity to promote its corporate citizenship and make cont~qbutions to the economic development of enth'e C1W. CTT Status V. Gibaut~ Chah' of C1W briefed the committee on the status of C1W. The advertisement for recruiting a C1W F~xecutive I)h'ector was in the paper and has close& D. Creech from Guelph will be handling the application~ OCETA, an affiliation of C1W has offered staff for the position of C1W Technician and will submit a w~qtten proposal Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES However, the organization st~cture is still yet to be discussed since some responsibilities and duties will be affected by the new executive dh'ector. V. Gibaut also advised the Committee on the status of the high-speed networl~ An apphcation has been submitted for funding up to $4.8 millio~ However, a presentation from World Teleport Association comprised of Economic Development dh'ectors from other communities and the private sector introduced a new satellite communication that is faster than high- speed networlL This way of communication can be set up in small or large communities and it is not necessary to transfer data to Toronto's POP server. Carl Zehi' noted that it is essential for the government to be involved for regulatory and corporation reason~ 3. Skill Shortage Survey John McKenzie representing Conestoga College presented the results from the Skill Shortage Survey. The purpose of this study was to identify current and future skill shortages in the region of C1W. Data collected will assist industry and education sectors within C1W to determine educational/training needs to addi'ess the identified workplace need~ Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES 1900 survey questionnaires were mailed out to the manufactu~qng indust~qes in CIW. 115 surveys representing 19,735 employees were returned for a response rate of 9.S57~ Most of the responses represented small business (with employees less than 100) but were evenly dist~qbuted geographically across the four city region~ Some trends were noted in the presentation: Recruitment Ih'eference ranked employees from the market place fhs~ then the University and College student~ This indicates the employers are still looking for more experienced workers who are circulating in the industry. Hhqng Ih'actices ranked Secondary School Students fhs~ then the University and College student~ J. McKenzie noted that this could be a result of high expectations from the small businesses of high school curricula~ Highlights of current shortage in Trade and Manufactu~qng Industries were: Technical Machinists Tool & Die Operators Welder Fitter Millw~qght One worth noting k that Plastic Fabricator although not ranked in the top five for current shortage but ranked number 5 for the future shortage. Other highlights include ranking Elect~qcal/mechanical enginee~qng fhst in the Enginee~qng indust~qes, and Sales/Marketing fhst in the Business sector. J. McKenzie also made some recommendations based on the results of the survey. He suggested that the educational sector needs to: Review its current curricula to fit the marketplace needs, especially in Secondary Schools since companies see it as a number one source of hhqng practice. Raise awareness in Secondary institutions careers in manufactu~qng and trade. Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES o o o For the indust~qes - Hh'e skilled graduates to infuse needs in the worldbrce. Invest in specific training programs for continuous educatiom Overall, there should be collaborative and specific training programs between the education sector and indust~qes~ Such direct educational resources to indust~qes will yield the greatest economic impact He suspected that this situation probably apphes to many indust~qal cities in Ontario. Councillor B. Vrbanovic noted that inlbrmation sessions in high school can by made by businesses in the community instead of Colleges or University having recruitment sessions would make a greater impact on the students Councillor T. Galloway asked if Employment Canada is involved in helping with skill shortage problems, J. McKenzie answered that Employment Canada have some federal funding but soon to be cut Councillor T. Galloway also pointed out that employment and experience are closely related but the experience factor was not adch'essed in the survey. Industrial Land Discussion was held in caucus Minutes of July 9, 1997 Minutes of July 9, 1997 were approved and adopted Economic Development Activities Postponed to next meeting Addition to Next Meeting's Agenda Discussion of newspaper article regarding the role of economic development marketing to be added on the agenda of next meeting 8. Epton Property Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES V. Gibaut spoke to Bill Thomas, PI'esident of LP Holdings and received more inlbrmation on the "Poseidon PI'oject." The multi-million project is to build a multi-purpose training facility with aquatic facilities, full size gymnasiums, a hotel and many other features on the former Epton Company property located just outside of Downtown Kitchener. V. Gibaut noted that the 99-93 swim meets generated $99.8 million for the host city, and this is a great opportunity to promote the City. This project does not require City funding, and should be completed in 9 year~ The pubhc announcement of this project is taking place l~qday August 15th, 11:00 am~ in the City Council Caucus Roon~ 9. Other Business V. Gibaut inlbrmed the committee that the City is leasing part of lot #57 in the Huron Business Park as a gravel parking lot to the private property next to it. This a net revenue for the city at $10.00 a spot. Meeting adjourned at 1:00 p.m. Next Meeting: Wednesday, September 10, 1997 ll:00am - l:00pm City of Kitchener, Council Caucus Room City Hall, 9nd Floor Economic Development Division August 13, 1997. BUSINESS AND INDUSTRY ADVISORY COMMITTEE - MINUTES CAUCUS ITEM 4. Industrial Land Larry Wolynetz representing Huron Woods Development presented a proposal relating to 50 acres of land owned by the company adjacent to City owned land at the end of Trillium Road and beside lots 134 and 139. Nh'. Wolynetz would like to erect a building on a portion of his land, however he needs T~41hum Road to be connecte& His proposal suggests that the City purchase some land form him which will provide him with the funds to complete the roa& A cost-benefit analysis was discusse& J. Hoffman suggested that this k a good deal for the City and const~ction on that lot will also attract other businesses to lots near-by. Councillor B. Vrbanovic noted that this is a win- win situation for the City, even in the wo~t scenario, City would still not be in debt after 7 year~ V. Gibaut added that resale of the land will be more than $75,000 as appeared in the proposal ~VL Hiscott commented that the City does not seem to be receiving too much benefit and should take advantage of the negotiation even though the deal does not seem bankable at this time. I~ Kieswetter pointed out that this is one way to increase City's land inventory and there should be more of this kind of innovative partue~hip with the private sector. V. Gibaut answered that Economic Development Division has been trying to develop such partue~hips because it benefits both parties and completion of the park C. Zehi' noted that this deal will gain flexibility and variety to the City's land inventory. J. Hoffman added that from a real estate point of view, this deal has a large overall effect C. Zehi' concluded that this discussion by the Committee should give Economic Development Division some sense of directiom Economic Development Division August 13, 1997.