HomeMy WebLinkAboutDSD-2023-424 - Waterloo Region Economic Development Corp (WREDC) Partnership RenewalStaff Report
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: October 30, 2023
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: Wards - All
DATE OF REPORT: October 2, 2023
REPORT NO.: DSD -2023-424
SUBJECT: Waterloo Region Economic Development Corporation (WREDC)
Partnership Renewal
RECOMMENDATION:
That the draft Waterloo Region Economic Development Corporation (WREDC)
Memorandum of Understanding (Partnership Agreement) and corresponding funding
be approved, as outlined in Development Services Department report DSD -2023-424;
and further,
That the Mayor and Clerk be authorized to sign the new Partnership Agreement
subject to the satisfaction of the City Solicitor.
REPORT HIGHLIGHTS:
• The purpose of this report is to renew the Waterloo Region Economic Development
Corporation Partnership Agreement with the funding outlined in the report effective
January 1, 2024 to December 31, 2028.
• The financial implications are a graduated annual increase in the Economic
Development Grant from the Operating Budget, from $320,000 in 2023 to fiscal 2027
level +CPI in 2028 as outlined in Appendix A to report DSD -2023-424.
• Community engagement included this report being posted to the City's website with the
agenda in advance of the Committee Meeting.
• This report supports A Vibrant Economy.
BACKGROUND:
In 2015 the Councils of the Region of Waterloo and Municipalities of Cambridge, Kitchener,
North Dumfries, Waterloo, Wellesley, Wilmot, and Woolwich agreed to jointly establish the
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Waterloo Region Economic Development Corporation (WREDC; Waterloo EDC is the
operating name) under a Memorandum of Understanding partnership agreement that had
one renewal in 2018 and is set to expire again on December 31, 2023.
This coordinated approach to the delivery of economic development services throughout
Waterloo Region has been in place to complement and support, and not duplicate, the
collaborative efforts of area municipal economic development staff. WREDC is responsible
for implementing strategic branding and marketing of Waterloo Region, Foreign Direct
Investment, business and talent attraction and development, regional data collection and
analysis and distribution.
REPORT:
There have been numerous corporate attraction and retention successes derived from the
WREDC team over the years. WREDC directly supports our community by leading foreign
direct investment attraction efforts and partnering on local business retention and
expansion. It is a highly successful advocate for, and contributor to, the investment
readiness of our community. The organization has delivered in excess of $1.6 billion in
economic impact, over 4,705 new jobs and almost $118 million in additional taxes to the
Canadian ecosystem through 87 closed deals between 2016-2022 (as measured by
Statistics Canada). For every $1 of municipal funding, WREDC has delivered $112 of
business investment.
Specifically in the City of Kitchener since 2016, there have been 39 closed deals delivering
$599M in economic impact, 1,994 new jobs created, and retention of 1,618 jobs. (Refer to
Appendix B, 2016-2022)
WREDC is governed by an independent Board of Directors selected by a committee of local
Mayors, Regional Chair and the CEO's of the KW and Cambridge Chambers of Commerce.
WREDC's initiatives are supported by 14 Staff. The WREDC team has ongoing interaction
with the CAO's and Municipal Economic Development teams.
The economic impact is made possible by the base municipal funding which has not
increased from the initial annual funding level established in 2016, with no increases for
annual inflation during that time. The federal and provincial governments have provided
funding support, however, the sustainability of the federal and provincial funding programs
is uncertain, resulting in an overall review of municipal funding.
Accordingly, WREDC's CEO and the area municipal CAO's have negotiated a proposed
new updated partnership agreement and funding strategy for WREDC to operate over the
next 5 years from January 1, 2024 to December 31, 2028. Appendix A outlines the financial
terms of the proposed agreement set to be tabled with the area municipal councils in
September and October. The agreement cannot be terminated by any of the parties prior
to December 31, 2026. The City of Waterloo and Region of Waterloo have already
approved the draft agreement.
WREDC commits to work in ongoing partnership with area municipalities through:
• Foreign direct investment
• Identification of key sectors to target
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• Identification of key areas to focus investment for each municipality
• Support for Mayor's missions
• Access to shared data and analysis
• Annual Reporting of key performance indicators
STRATEGIC PLAN ALIGNMENT:
This report supports Creating an Economically -Thriving City Together
FINANCIAL IMPLICATIONS:
Capital Budget — The recommendation has no impact on the Capital Budget.
Operating Budget — Funding is provided through an Economic Development Grant in the
Operating Budget. In 2023, the City provided a grant of $320,000. The negotiated funding
model would see the City's contribution increase by $200,000 per year, spread over the next
3 years. The grant would increase to $420,000 in 2024, $470,000 in 2025 and $520,000 in
2026. CPI would be applied to the grant in 2027 and 2028. If approved, these increases
would be incorporated into future budgets.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the Committee Meeting.
COLLABORATE — Collaboration occurs with Community Partners, area Municipalities,
senior levels of government and businesses.
PREVIOUS REPORTS/AUTHORITIES:
• DSD -18-012
• CAO -15-008
APPROVED BY: Justin Readman, General Manager, Development Services
I_1» 4 i 1371:'
Appendix A — WREDC Annual Funding Model
Appendix B — WREDC key performance indicators 2016 - 2022
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Appendix A: WREDC Funding Model by Municipality
Page 115 of 132
Current
2024
2025
2026
2027
2028
Municipalities
Funding
Funding
Funding
Funding
Funding
Funding
2026 level +
2027 level +
City of Cambridge
320,000
420,000
470,000
520,000
CPI
CPI
320,000
2026 level +
2027 level +
420,000
470,000
520,000
CPI
CPI
City of Kitchener
320,000
2026 level +
2027 level +
City of Waterloo
420,000
470,000
520,000
CPI
CPI
Township of
50,000
2026 level +
2027 level +
50,000
50,000
50,000
Woolwich
CPI
CPI
Township of
50,000
2026 level +
2027 level +
50,000
50,000
50,000
Wilmot
CPI
CPI
Township of
20,000
2026 level +
2027 level +
20,000
20,000
20,000
Wellesley
CPI
CPI
Township of N.
20,000
2026 level +
2027 level +
20,000
20,000
20,000
Dumfries
CPI
CPI
Region Of
900,000
2026 level +
2027 level +
Waterloo
1,400,000
1,450,000
1,500,000
CPI
CPI
�otal:
2,000,000
2,800,000
3,000,000
3,200,000
Page 115 of 132
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