HomeMy WebLinkAboutCAO-09-056 - FedDev Ontario Program ApplicationsREPORT
REPORT TO:
Councillor B. Vrbanovic, Chair and Members of the
Finance and Corporate Services Committee
DATE OF MEETING:
November 16, 2009
SUBMITTED BY:
Rod Regier, Executive-Director, Economic Development
PREPARED BY:
Rod Regier, Valerie Machado
WARD(S) INVOLVED:
All
DATE OF REPORT: October 21, 2009
REPORT NO.: CAO-09-056
SUBJECT:
FED/DEV ONTARIO PROGRAM APPLICATIONS
RECOMMENDATION:
That staff be directed to submit application to the Southern Ontario Development Program
(SODP) administered by Fed/Dev Ontario for the following projects:
1. The Waterloo Manufacturing Innovation Network (MIN)
2. Life Sciences Incubator and Commercialization Wet Lab Location Analysis and
Conceptual Design
BACKGROUND:
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On August 13, the Federal Government announced the creation of the Federal Economic
Development Agency for Southern Ontario (FedDev Ontario). This new agency is charged with
delivering federal government economic development programs tailored to the specific priorities
of workers, businesses and communities in Southern Ontario. In September, FedDev Ontario
announced a new program to facilitate economic development in Southern Ontario – Southern
Ontario Development Program (SODP). The purpose of the program is to promote economic
development, economic diversification and job creation. Its focus is to help Southern Ontario
communities diversify their local economies, including into a wider range of value-added and
technology driven products and services.
Eligible applicants include small and medium-sized enterprises (SMEs) looking to expand,
modernize, innovate, or improve their competitiveness, non-profit organizations whose primary
mission is business support or economic development, colleges, universities, polytechnic
institutes and other teaching institutions, and municipalities. Both capital and non-capital
projects will be considered.
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Eligible projects must be completed by March 31, 2010. The very tight timeline will limit the
scope of possible projects. However, FedDev Ontario will consider projects that can be
considered either phase one or foundational (project planning) processes for future larger and
longer term initiatives.
Staff are recommending moving forward with two projects under the SODP – i) Growth of the
Manufacturing Innovation Network and ii) location analysis and conceptual design of a life
sciences incubator to be located on the UW Health Sciences Campus in downtown Kitchener.
Both of these projects are priorities identified in the City of Kitchener Economic Development
Strategy and have City and partner contributions already allocated for the purpose. Federal
funding would leverage existing City and partner funding to enable the respective initiatives to
move forward.
REPORT:
1) The Waterloo Manufacturing Innovation Network (MIN)
The Waterloo Region Manufacturing Innovation Network (MIN) is an innovative online
community that aims to connect the over 1,000 manufacturers in the Waterloo Region. The
goal of the community is to create a more responsive and globally competitive manufacturing
community through improved networking, collaboration and knowledge sharing. Membership in
MIN is free to all manufacturers within the Waterloo Region.
MIN is governed by an Advisory Board, consisting of the Cities of Cambridge, Kitchener, and
Waterloo, the Region of Waterloo, represented by Canada’s Technology Triangle, Conestoga
College, the University of Waterloo, Communitech, the Greater K-W Chamber of Commerce,
the Excellence in Manufacturing Consortium, the Automotive Parts Manufacturers Association,
and representatives from the local manufacturing community. Each of the Advisory Board
members contributes $5000 annually in order to sit on the Board and help shape the direction of
the growth of MIN, with the exception of the manufacturers, whose membership on the Advisory
Board is free. These funds are used to pay for the services of a part-time Executive Director,
and the MIN community facilitator.
Purpose of the Funding Application
The purpose of the funding application to SODP, is to provide the human and marketing
resources required to build and to help sustain it, until it can become financially self-sufficient
through memberships charged to service-providers, corporate sponsorships, and online
advertising, These costs have been borne to date by the software developer and host of the
web 2.0 technology, IGLOO Corporate Social Networking, but this is not a sustainable solution
on an ongoing basis.
We are proposing that the City of Kitchener submit an application for $217,347.23on behalf of
the Waterloo MIN Advisory Board to SODP for the Waterloo MIN. This amount represents 90%
st
of the anticipated costs for the Waterloo MIN from November to March 31. The anticipated
revenue stream for the first quarter of 2010 ($24,861.11)from sponsors and advertising which is
being reinvested into the Waterloo MIN represents the 10% required under the SODP.
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Summary of Initial MIN Budget
Revenue:
Corporate Sponsorships $ 8,333.33
Membership (service providers) $ 1,111.11
Local Stakeholders (advisory board) $11,250.00
Online Advertising $ 4,166.67
Total Revenue $24,861.11
Expenses:
Staffing $ 60,000.00
Computer Hardware & Software $ 10,125.00
Office Space & IT Support $ 14,250.00
Operating Expenses $128,666.67
Innovation Investment Fund $ 29,166.67
Total Expenses: $242,208.34
Funding Required $217,347.23
2) Life Sciences Incubator: Location Analysis and Conceptual Design
In 2004, the City of Kitchener and the University of Waterloo entered into a partnership to
develop a Health Sciences Campus in Downtown Kitchener anchored by a new School of
Pharmacy. Today the School of Pharmacy is open and a new Satellite Campus of the Michael
DeGroote School of Medicine will be soon moving into its new location in Building B on campus.
One of the assumptions of the City’s strategy in funding the School of Pharmacy was that it
would become a catalyst for innovation and commercialization of life sciences technologies. An
inventory of Life Sciences Research Infrastructure and a Cluster Strategy for Life Sciences
clearly identified the regional strengths and a path forward in nurturing the growth of the Life
science cluster in the Waterloo Region. The Cluster Strategy stated clearly that one of the
strongest strategies for building the cluster and attracting external investment was to support the
growth of local start-up companies with appropriate incubation facilities that included wet and
dry labs to support IP commercialization.
Preliminary results are currently available from a study of the demand for a life sciences
incubation facility in the Waterloo Region. These results indicate that there are a significant
number of life sciences start-up companies at the University of Waterloo that will require
incubation facilities with wet and dry lab space in the next 12 to 24 months. In addition, 3
existing firms have expressed interest in expanding their operations or locating in a facility
adjacent to the new Health Sciences Campus. These firms are possible anchor tenants for a
life sciences incubator.
The proposed study will examine alternative locations for the life sciences incubator on the
Health Sciences Campus, develop a conceptual design and evaluate the operational feasibility
for the facility. This information will then form the basis for a business case and future capital
funding proposals to strategic partners in the private sector, as well as Provincial and Federal
Governments.
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Life Sciences Incubator Study Budget
Study Cost $50,000
Funding Sources
University of Waterloo $ 6,250
City of Kitchener $ 6,250
FedDev Ontario $37,500
Total $50,000
FINANCIAL IMPLICATIONS:
1. Regarding the application for the Waterloo Region MIN, there will be no direct
financial implications to the City of Kitchener, other than the $5,000 membership fee
the City pays to maintain a position of the MIN Advisory Board.
2. Regarding the Design Study for the Life Sciences Incubator, the 25% portion of costs
required under the SODP program will be made up of 12.5% from the University of
Waterloo and 12.5% from the City of Kitchener EDIF Research and Studies Budget.
ACKNOWLEDGED BY: Rod Regier, Executive-Director, Economic Development
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