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Home My WebLink AboutEDAC - 2025-09-24 JffHEoTE Economic Development Advisory Committee Committee Minutes September 24, 2025, 11:00 a.m. Schmalz Room - Second Floor City Hall City of Kitchener 200 King Street W, Kitchener, ON N2G 4G7 Present: Councillor D. Schnider, Member Margaret Johnston Chuck Howitt, Chair L. Rodriguez Reyes, Member M. Krushack, Member P. Kreutner, Member J. Curto, Member M. Bingeman, Member A. Akbar, Member Tanner Bergsma Staff: Cory Bluhm Brian Bennett N. Nandakumar, Committee Administrator Aura Hertzog Lidia Feraco Naudia Banton 1. Commencement The Economic Development Advisory Committee was held at 11:04 a.m. on September 24, 2025. Chaired by Joe Curto. 2. Disclosure of Pecuniary Interest and the General Nature Thereof 3. Delegations 4. Information Items 4.1 Refresher: Make It Kitchener 2.0 1 The Make It Kitchener 2.0 overview was provided by C.Bluhm. Introduction and Context • The City launched a long-term strategy in October 2020 to guide focus areas for the next 10 years with emphasis on sustainable growth and community focused development. • He provided an overview of the MIK 2.0 strategy, noting that it is currently at the midpoint of the plan. • The overview is intended as a refresh, allowing the committee to review progress, assess success and identify the areas for future focus or adjustment. Key points • Initial consultation in 2019 led to the identification of five key areas of focus, with an additional short-term pandemic response effort. • Following were the 5 identified areas of focus: 1. Health Innovation 2. Creative Industries 3. A city-wide startup network - focused on Sustainable Development Goals 4. Affordable and Attainable Housing 5. A Vibrant, Active City Investment Highlights • $110 million investment fund was established o $10 million in immediate cash o $20 million in debt re-financing o $80 million in land assets, used strategically for investments and partnerships. Health Innovation • Partnership with the University of Waterloo through the Velocity Incubator, which currently supports 135 start-up companies. • Development of a new small business innovation space. 2 • Advancement of Bramm Yards area to create urban employment space linked to health innovation. • Total investment to date: approximately $8.5 million in Velocity and 0.5 million in new small business space. Affordable Housing • Land donations and partnerships to support housing development - $9 million committed via investment funds for projects with YWCA project : 60 units, operational and Habitat for Humanity - larger projects underway. • Focus on housing solutions aligned with long-term community needs and economic development objectives. Post Pandemic Vibrancy and Events • After pandemic, strong emphasis was placed on revitalizing city vibrancy through community events. • Increased investment in festivals and events, driving significant community engagement. • Notable attendance increases: o Christkindl Market -Approx. 85,000 attendees over 3-4 days o Canada Day - typically draws over 30,000 attendees o Wayback Festival -Approx. 25000-30000 attendees • Tracking event impact and measuring economic impact is ongoing, including free events, cell phone attendance data, festival engagement, downtown spending and repeat visits (sales data). • The City continues to attract new events and partners with notable recognition from other municipalities. • Committee members discussed the importance of assessing broader outcomes such as downtown vacancy rates, new retail activity and long- term business vitality. Creative Industries/Arts & Entertainment • Creation of 44 Gaukel Block event space for local artists, vendors, and community events via federal grant. 3 • School of Creative Industries: Planned in partnership with Conestoga College to support the growing creative economy in the region. • The Conrad Centre for Performing Arts was donated to the City of Kitchener in 2021 to support performing arts in the community - City funds the ongoing operations. 5. Discussion Items 5.1 Make It Kitchener Refresh Purpose of the refresh • Mid-point check-in: C.Bluhm explained that the Make It Kitchener 2.0 refresh is intended to revisit the strategy and update the approaches to evolving economic conditions. • The committee's input will help guide updates to the strategy. • Insights will be taken to City Council to inform future priorities and decisions. Committee Role • Mr. Bluhm emphasized the committee's role is to provide creative responses and approaches and explore ideas that allow Kitchener to differentiate from other communities. • Committee feedback will be used to refine the strategy and plan potential follow-ups. Timeline • October: Discussion of emerging themes and priority areas • November: Presentation from consultant on competitive and sectoral analysis • December: Stakeholder round tables and council strategic discussions. • February: Strategic session with council to review draft priorities • March: Final strategy report submitted to Council Quarterly reviews will be incorporated to monitor progress, ensure alignment with long-term goals, and allow for adjustments as needed. 4 Key Economic Forces Identified C.Bluhm and committee members discussed the economic factors affecting Kitchener, highlighting the challenges and opportunities. These forces may include, but are not limited to: • Trade and Tariff War • High interest rates • Inflation/Increase in cost of goods • Construction industry slowdown (ex: housing development) • Hybrid work and its impact on the office market • Lack of available Venture Capital funding • Future impacts of Al • Reduction in international student enrollment • Potential recession Key themes from the discussion • Potential Recession: o Local businesses are experiencing uncertainty due to fluctuating interest rates and economic conditions. o The decline in international students and cautious consumer spending due to inflation could affect hospitality sector directly. o Rising cost of goods and services are a major concern for businesses and households. o Interest rates are affecting consumer behavior and borrowing. o Businesses continue to face staffing and revenue challenges. o Hospitality and tourism are affected by lower foot traffic and reduced spending per visitor. • Construction: o Industry slowdown is leading to reduced municipal revenues tied to new development activity. 5 o International student enrollment declines are affecting housing demand. • Future impact of Al: o Al is creating job shifts - some jobs may disappear, others will emerge. o Committee members emphasized the importance of responsible Al and its governance. o Al can also offer economic opportunities - energy management, electric fleet revenue streams etc. o Companies must integrate Al to stay competitive. • Workforce Challenges: o Labour market disruptions in hospitality and service sectors due to wage expectations and international student availability o Members reflected that while hybrid work offers work life balance, it poses challenges for urban planning and revitalization efforts. o Office occupancy rates are still lower than before the pandemic and this continues to affect downtown activity and local businesses. • Access to Capital: o Access to financing is a critical factor influencing business expansion and innovation in the region o Members discussed that access to capital is a key barrier for small and medium sized businesses in Kitchener. o The committee highlighted opportunities for the City to support access to capital, such as connecting business with grant programs, low interest loans or investment networks. o Some committee members also noted that economic uncertainty affects lenders' willingness to provide capital. • Trade, tariffs and inflation: o Committee members discussed the City's limited control over these factors, while the City cannot directly control tariffs or inflation, it could identify areas for local support or mitigation strategies o Opportunities were noted for the City to support local business in adapting to higher costs or supply chain challenges. 6 Top Economic Themes Identified • Potential recession and consumer confidence • AI/ Technology Impact • Inflation & cost of goods • Construction slowdown and housing impacts • Access to capital for business/startups Opportunities and Considerations for the City • The City can help influence areas such as support local business, enabling innovation and facilitating access to resources • Committee members encouraged the City to think differently from other communities and explore creative responses to economic challenges. • Opportunities to help business and employees adapt from hybrid work models and return to work transitions. • Understanding sector specific challenges such as talent shortages or financing barriers and tailoring City initiatives accordingly. • Distinguishing between what the City can influence (local policy, economic support programs) versus external economic forces like inflation, tariffs and global supply chain issues. 5.2 Industry Expertise • The committee discussed and suggestions were made to invite experts to present at future meetings, providing insights into topics such as economic trends, workforce development, access to capital and innovation. • Experts would be bought strategically, aligning with the committee's agenda and current economic priorities. • The committee was informed that the role of the experts is to inform, advise and spark ideas. 5.3 Review of the next steps • Need to reassess the City's Top 5 focus areas based on current economic conditions vs. 5 years ago 7 • Consider adding or updating the priorities based on emerging trends • Committee members to submit any additional expert recommendations prior to the next meeting • Next meeting to revisit the identified top economic factors and confirm focus areas for further analysis 6. Adjournment On motion, this meeting adjourned at 1.10 p.m. Navitha Nandakumar Committee Administrator 8