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WelcomeEconomic DevelopmentCorporationsUnleashing Local Capital
AgendaDashboardSpeakerQ&AFollow-Up
Guest SpeakerDoug EddyFormer CEO, Buffalo Narrows Development Corporation2007 - Honoured as Economic Development Officer o...
Economic Development CorporationsIn this Session1.   Historical View2.    The Municipal EDC Model     •    Structure     •...
Historical View• Inuit Development Corporations• First Nations Development Corporations• Municipal Development Corporation...
Create sustainable local and regional       development       Generate revenue to support economic       development staff...
 A for profit and business corporation   ECONOMIC  at arms length from Mayor and  Council                                ...
When to establish an EDC?When the community:• Has made a commitment to increase their economic  future and increase employ...
How to establish an EDC• Lay out a plan of approach.• Identify source(s) of seed funds• Start small• Elect a Board of Dire...
Staffing•   Strategic thinking•   Solid business background•   Excellent management skills•   Expert communication•   Comm...
Meeting the Needs of Municipalities Today •   Funding economic and community development •   Address aging infrastructure ...
Village of Ile a La Crosse• Sakitiwak Development Corporation• Wholly owned by the village• Established in 1989 and has su...
Buffalo NarrowsBuffalo Narrows EconomicDevelopment Corporationestablished in 1989Wholly owned by the villageMandate: to cr...
Potential Investment StrategiesDevelopment Corporations must - by their very nature – mustadapt to local circumstances, lo...
Potential Investment Criteria• Joint ventures on existing businesses or investments• Joint ventures on new businesses or i...
What to look for in a Business Partner•   Trust•   Financial Success•   Industry Experience•   Financial management skills...
Independent Investments: SakitawakSDC Security Services, established in 1995, is wholly owned by SDC. Provides  trained un...
Joint Ventures: SakitiwakCarver Sakitawak Corporation - An Aboriginal owned Northern Saskatchewan   Project Management and...
Shareholders                  Board of Directors(Mayor and Council)                                                       ...
BNEDC: Pioneer Point• New resort development estimated at 10-12 million  dollars.• Joint Venture with a private consortium...
BNEDC Lot Development Have completed a 46 lot development on  Kiezie Channel ( all lots sold) Development of another lot...
TOWN CENTRE PROJECT• 32,000 Square feet• 2 Stories• Keewatin Yatthe Health  District• Innovation Credit Union• North West ...
Creating a Venture Group• A mutual understanding with all communities between  Buffalo Narrows and Saskatoon.• All share c...
Example 1: Northern Venture Group Currently 9 northern communities as members Incorporated in 2004, NVG Company is owned...
Example 2: Mamawi Partnership• 9 communities on northwest side of province• 51 % owner in each partnership• Targeting Mini...
Sakitiwak Return to Community$175,000 to upgrade the fire hall, fire truck, town shop and arena.$110,000 provided to buy a...
BNEDC Return to Community•   $ 80,000 for new grader•   $ 150,000 for municipal equipment•   $ 600,000 for road paving•   ...
Pros and Cons of this Model  Pros  • Exempt from public procurement restrictions  • Exempt from debt guidelines  • Operate...
Pros and Cons of this ModelCons• Liability Issues: As a shareholder, is the community  liable to potential default on debt...
In        The Economic Development              Corporation Model will be a             good fit for your community ifConc...
Q&ASend us your questions or comments via theChat or Question module on your dashboard.
Thank you for joining us!     Verona Thibault     President, SEDA     @ saskecdevassoc     @ growourregion     verona.thib...
Economic Development Corporations
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Economic Development Corporations

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Local development corporations are arms length corporations often created by, or for the benefit of, local governments for economic development or other public purposes. Local development corporations as well as certain other types of private entities (e.g., limited liability companies), are being utilized with increasing frequency by cities, towns and villages to finance local government operations and projects.

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Economic Development Corporations

  1. 1. WelcomeEconomic DevelopmentCorporationsUnleashing Local Capital
  2. 2. AgendaDashboardSpeakerQ&AFollow-Up
  3. 3. Guest SpeakerDoug EddyFormer CEO, Buffalo Narrows Development Corporation2007 - Honoured as Economic Development Officer of the Year by his peers at SEDA.
  4. 4. Economic Development CorporationsIn this Session1. Historical View2. The Municipal EDC Model • Structure • When to establish an EDC • How to establish2. Examples of Saskatchewan EDC’s • Ile a la Cross Saskatchewan • Buffalo Narrows Saskatchewan3. Potential Investment Strategies4. Pros and Cons of this Model5. Community Benefits
  5. 5. Historical View• Inuit Development Corporations• First Nations Development Corporations• Municipal Development CorporationsCommon Challenges:• Scarce business and employment opportunities• Need to build sustainable community capacity and infrastructure
  6. 6. Create sustainable local and regional development Generate revenue to support economic development staffWHY? Provide business and employment opportunities Support community projects sustainable communities
  7. 7.  A for profit and business corporation ECONOMIC at arms length from Mayor and Council DEVELOPMENT Involvement in variety of business CORPORATIONS ventures, community ventures and infrastructure projects Facilitates local and regional employment opportunities
  8. 8. When to establish an EDC?When the community:• Has made a commitment to increase their economic future and increase employment• Has made a bylaw establishing the Corporation and empower it with an arms length Board of Directors• Has made a commitment to find and secure the seed funds for the first project(s)
  9. 9. How to establish an EDC• Lay out a plan of approach.• Identify source(s) of seed funds• Start small• Elect a Board of Directors upon passing of Corporation Bylaw establishment• Undertake a Strategic Planning exercise• Monitor – Monitor -Monitor
  10. 10. Staffing• Strategic thinking• Solid business background• Excellent management skills• Expert communication• Community-focused• Results-oriented• Must act with integrity
  11. 11. Meeting the Needs of Municipalities Today • Funding economic and community development • Address aging infrastructure • Business development • Employment
  12. 12. Village of Ile a La Crosse• Sakitiwak Development Corporation• Wholly owned by the village• Established in 1989 and has successfully invested many regional and community businesses• Mission: to develop, maintain and expand the economic base of Ile-a-la-Crosse – thereby benefiting its residents
  13. 13. Buffalo NarrowsBuffalo Narrows EconomicDevelopment Corporationestablished in 1989Wholly owned by the villageMandate: to create viable opportunities fordevelopment and stimulate employment throughbusiness ventures.The Corporation is governed by a Board of 7 DirectorsEmploys a CEO and office manager – Secretarial andthrough various ventures may employ 20-25 persons
  14. 14. Potential Investment StrategiesDevelopment Corporations must - by their very nature – mustadapt to local circumstances, local leadership and localresources. 1. Independent development projects 2. Shareholder in an established venture(s) 3. Joint Ventures with private and public sectors where opportunities are present
  15. 15. Potential Investment Criteria• Joint ventures on existing businesses or investments• Joint ventures on new businesses or investments• Job creation within the community• Job creation outside the region with investment accruing to the community• Resource related opportunities• "Return on Investment” opportunities that enable the corporation to provide benefits to the community
  16. 16. What to look for in a Business Partner• Trust• Financial Success• Industry Experience• Financial management skills• Reputation
  17. 17. Independent Investments: SakitawakSDC Security Services, established in 1995, is wholly owned by SDC. Provides trained uniformed security guards equipped with mobile patrol units to businesses, mine sites and special events.SDC Construction Ltd., established in 2003, is wholly owned by SDC. Provides general construction services including heavy equipment operations, carpentry and labour supply. The company has also operated as a general contractor for multi-million dollar highway improvement work.Northern Sunset Motel has 16 rooms, a restaurant and tavern with off-sale and video gaming services. The motel is wholly owned by SDC.Land Development- SDC owns land in and around the community which it will sell, and lease for rural residential and business development purposes.
  18. 18. Joint Ventures: SakitiwakCarver Sakitawak Corporation - An Aboriginal owned Northern Saskatchewan Project Management and Technical Services company that provides project management, consulting, staffing and training services.Mudjatik Thyssen Mining - A joint venture providing a multitude of underground mining services in Saskatchewan’s expanding resource sector, Mudjatik Thyssen is one of the newest of SDC’s partners.Northwest Communities Wood Products - This company is owned by several North West Saskatchewan communities including Ile-a–la-Crosse. Its mandate is to manage the region’s forestry development to benefit these communities.NRT: Northern Resource Trucking Limited Partnership is a company comprised of First Nations and Metis partners from communities throughout Northern Saskatchewan, along with Trimac Transportation.
  19. 19. Shareholders Board of Directors(Mayor and Council) BNEDC CEO Staff PROJECTSNWC (Forestry) NVG Mudjatik JV NW Fabricators (Mining) (Welding) Mamawi Golf Course BN Tourism NOG NRT (Trucking) Town Centre Camp Insurance Resort Lot Development Development Resource Development Building on our Strengths
  20. 20. BNEDC: Pioneer Point• New resort development estimated at 10-12 million dollars.• Joint Venture with a private consortium from Ft. McMurray and BNEDC• BNEDC negotiated share = 25%• Commenced development summer 2005
  21. 21. BNEDC Lot Development Have completed a 46 lot development on Kiezie Channel ( all lots sold) Development of another lot project Kiezie Point with for 61 lots and all sold Another 60 backside lots this year Project is 100% owned by BNEDC
  22. 22. TOWN CENTRE PROJECT• 32,000 Square feet• 2 Stories• Keewatin Yatthe Health District• Innovation Credit Union• North West Company• Tim Hortons• Village Office• Service Canada Building on our Strengths
  23. 23. Creating a Venture Group• A mutual understanding with all communities between Buffalo Narrows and Saskatoon.• All share common concerns about transportation.• Mutual agreement to speak as one with Government re projects.• No formalization but share mutual support and respect
  24. 24. Example 1: Northern Venture Group Currently 9 northern communities as members Incorporated in 2004, NVG Company is owned by participating 5 Economic Development Corporations Each Corporation holds 20% shares• In 2004, Company has partnered with Denison Environmental Services, a division of Denison Energy Successfully bid on Cluff Lake Uranium Mine Demolition. Project complete
  25. 25. Example 2: Mamawi Partnership• 9 communities on northwest side of province• 51 % owner in each partnership• Targeting Mining Sector• Opening opportunities to other Sources of revenue.
  26. 26. Sakitiwak Return to Community$175,000 to upgrade the fire hall, fire truck, town shop and arena.$110,000 provided to buy a local radio and TV station.$125,000 donation was toward the new regional health facility constructed in 2005$50,000 was provided to purchase a new Zamboni for the skating rink$10,000 directed toward a community development plan$300,000 provided to help the municipality offset costs with paving municipal streets$50,000 pledged towards proposed community swimming pool$55,000 contribution was made to a new Youth Activity centre$10,000 contribution to emergency medical equipment for the communitySDC also provides funds to many community charities and events throughout the year.
  27. 27. BNEDC Return to Community• $ 80,000 for new grader• $ 150,000 for municipal equipment• $ 600,000 for road paving• $20,000 for Saskatchewan Childrens Hospital• $ 350,000 for Resort development• $ 225,000 for Fabrication plant• New Town Center with value of 8.2 million
  28. 28. Pros and Cons of this Model Pros • Exempt from public procurement restrictions • Exempt from debt guidelines • Operates as a business • Working practices that are more closely aligned with the private sector than those of the public sector. • Removed from local politics • Boards allow for the presence of outside expertise or for the representation of a number of groups or interests.
  29. 29. Pros and Cons of this ModelCons• Liability Issues: As a shareholder, is the community liable to potential default on debt or other legal issues accruing to the corporation?• Negative impact on other competing businesses? Viewed as subsidizing?
  30. 30. In The Economic Development Corporation Model will be a good fit for your community ifConclusion There is a serious commitment by municipal leaders to be successful
  31. 31. Q&ASend us your questions or comments via theChat or Question module on your dashboard.
  32. 32. Thank you for joining us! Verona Thibault President, SEDA @ saskecdevassoc @ growourregion verona.thibault@seda.sk.ca 306-384-5817 Douglas Eddy Economic Development Consultant

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