Ontario west municipal treasurers' forum

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A refresher on economic development and investment readiness

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Ontario west municipal treasurers' forum

  1. 1. Investment Readiness<br />A Refresher on Municipal Economic Development<br />Ontario West Municipal Treasurers’ Forum<br />Oct. 7, 2010<br />
  2. 2. Outline<br />What is economic development?<br />Components of an economic development strategy<br />Key Factors in Site Selection<br />Investment Readiness Assessment <br />Good, Bad & Ugly<br />Opportunities to learn more<br />
  3. 3. Economic Development Defined<br />A program or group of policies, and/or activities that seek to improve the economic well-being and quality of life for a community. <br />Create and retain jobs and provide a stable tax base. <br />
  4. 4. Wealth Generation<br />Bring in new money<br />Attracting or starting new businesses<br />Attracting visitors who spend their money in region<br />Encouraging local businesses to sell their products outside the region<br />Keep existing money<br />Retain existing businesses<br />Buy local programs<br />Expand/ attract businesses that address leakage<br />
  5. 5. Components of an Economic Development Strategy<br />Investment Attraction<br />Business Retention & Expansion<br />Small Business & Entrepreneurial Development<br />Tourism Programs <br />Tourism Investment<br />Destination Marketing<br />Downtown Development<br />Infrastructure Projects<br />
  6. 6. Components of an Economic Development Strategy<br />Investment Attraction<br />Usually accounts for less than 10% of an economic development officer’s time.<br />Consumes the lion’s share of the economic development budget.<br />
  7. 7. Source of New Jobs<br />(Source: RUPRI Centrefor Rural Entrepreneurship)<br />
  8. 8. Components of an Economic Development Strategy<br />Business Retention & Expansion<br /><ul><li>Corporate Aftercare – Working with existing companies to secure opportunities for expansion.
  9. 9. One of the most effective ED programs
  10. 10. Export development
  11. 11. Import replacement (shop local) programs</li></li></ul><li>Components of an Economic Development Strategy<br />Small Business Development<br />2.35 million small businesses in Canada<br />150,000 new businesses open each year and 130,000 close each year<br />With early intervention(basic business planning) survival rates can be dramatically improved.<br />
  12. 12. Components of an Economic Development Strategy<br />Tourism Programs<br />Destination Marketing<br />Tourism Investment<br />
  13. 13. Components of an Economic Development Strategy<br />Downtown/Commercial Development<br /><ul><li>Responding to changing trends in retail and commercial development.
  14. 14. Growth of big box outlets - new franchise opportunities
  15. 15. Community Improvement Plans
  16. 16. Business Improvement Areas</li></li></ul><li>Components of an Economic Development Strategy<br />Infrastructure/ Special Projects <br />Connectivity initiatives<br />Post-secondary education<br />Workforce development<br />
  17. 17. The Creative Economy<br />Rise of the Creative Class<br /><ul><li>“Our economy is shifting away from jobs based largely on physical skills or repetitive tasks to ones that require analytical skills and judgment.”
  18. 18. Talent, technology, tolerance</li></ul>“Ontario in the Creative Age” - Martin Prosperity Institute, University of Toronto, February, 2009.<br />Dr. Richard Florida<br />
  19. 19. Other Duties?<br />Physician Recruitment<br />Resident Attraction(seniors, youth, new immigrants)<br />Cultural mapping<br />Communications / Branding<br />Signage Strategies<br />Communities in Bloom<br />Brownfield Redevelopment<br />Special Events (Plowing Match)<br />
  20. 20. Site Selection Factors<br />Factors that rated as ‘very important’ or ‘important’<br />Percent<br />Source: Area Development 2009 Corporate Survey of Site Selectors<br />
  21. 21. Top 10 Site Selection FactorsOver 85% Very Important or Important <br />Labour costs<br />Highway Accessibility<br />Tax Exemptions<br />Energy availability & costs<br />Corporate Tax Rate<br />
  22. 22. Top 10 Site Selection FactorsOver 80% Very important or important<br />Availability of skilled labour<br />Occupancy or construction costs<br />State & local incentives<br />Availability of advanced ICT services<br />Inbound/outbound shipping costs<br />
  23. 23. Quality of Life Factors<br />Low crime rate<br />Health care facilities<br />Housing availability<br />Housing costs<br />Ratings of public schools<br />Climate<br />Recreational opportunities<br />Colleges & universities in the area<br />Cultural opportunities<br />
  24. 24. Investment Readiness Assessment<br />
  25. 25. EDCO<br />600 members<br />Municipal, provincial, federal governments<br />Business Associations<br />Workforce Development Organizations<br />Industrial, commercial realtors and land developers<br />
  26. 26. Investment Readiness Assessment<br />Partnership with the Ministry of Economic Development<br />Conducted in 2007 & 2008<br />Mock site selection exercise<br />Request for Proposal<br />Site visit<br />Community Report Cards<br />Workshops<br />Report on Best Practices <br />
  27. 27. Investment Readiness What Does It Mean?<br />On the radar<br />Can meet Site Consultants’ needs<br />Able to close the deal<br />
  28. 28. #1 – On the Radar?<br />Broad Support for the Economic Development Mission<br /><ul><li>Provincial associations
  29. 29. Provincial involvement
  30. 30. Provincial data resources</li></ul>Regional Branding / Attraction Strategies<br /><ul><li>Regional success stories</li></ul>Ontario East, CTT, GTMA<br /><ul><li>Regional economic development strategy
  31. 31. Most communities are poorly represented at this macro level</li></li></ul><li>#2 Meet Site Consultants Needs<br />Up-to-date, forward looking vision for Community<br />Regional approach – coordinated marketing and attraction efforts<br />Professional assistance - high standard when working with site consultants & prospects<br />Datarich - robust data resources <br />
  32. 32. # 2 Meet Site Consultants Needs<br />Know your community – keep site, city and regional maps up-to-date<br />Involve Real Estate Community –make brokers, property owners & developers part of the team<br />Educated Stakeholders – board members, politicians, government officials, business community<br />Professional – responsive, punctual, honest, thorough in all dealings<br />
  33. 33. Investment Readiness Scoring<br />
  34. 34. How did we do?<br />Request for Information<br />73%<br />Community Visit<br />76%<br />
  35. 35. The GoodLocal Improvements Underway<br />
  36. 36. The GoodDevelopable land offered with reasonable cost and development fees<br />
  37. 37. The GoodGood Utility Infrastructure<br />
  38. 38. The GoodAttractive, thriving downtown<br />
  39. 39. The GoodProven connection between training resources and industry<br />
  40. 40. The BadSite not cleared for development, low power lines straddle future entrance<br />
  41. 41. The BadHigh cost land and development fees<br />
  42. 42. The BadUtility infrastructure not in placeCapacity not available for new industry<br />
  43. 43. The BadLack of connection between industry and local training resources<br />
  44. 44. The UglyLax rules for outside storagemakes industrial parks less desirable<br />Long abandoned hospital is testimony to a breakdown in local leadership<br />
  45. 45. The UglyExisting Building not ready for a new tenant<br />Long abandoned hospital is testimony to a breakdown in local leadership<br />
  46. 46. The UglyBrownfield site not ready for development<br />Long abandoned hospital is testimony to a breakdown in local leadership<br />
  47. 47. #3 Can we close the deal?<br />Questioned financial ability to assist with infrastructure improvements, training funds, etc.<br /><ul><li>Prolonged funding or planning decisioncould drive project to another community</li></li></ul><li>Key Finding: Low Level of Community Preparedness<br /><ul><li>Limited number of “shovel ready” sites and buildings
  48. 48. Many lacked up-to-date economic development strategy with industry targets
  49. 49. Poor quality community profiles
  50. 50. Web sites provided insufficient information and functionality
  51. 51. Weak linkages between economic development and labour force development</li></li></ul><li>Key Finding: Low Level of Community Preparedness (Cont’d)<br /><ul><li>Development fees and land costs potentially prohibitive
  52. 52. Many local politicians and senior administrators not aware of the importance of community preparedness
  53. 53. Regional cooperation underdeveloped compared to US and Europe</li></li></ul><li>Key Recommendations<br />Education<br />Website<br />Certification Program<br />
  54. 54. It’s a new day in economic development<br />
  55. 55. Want to learn more?<br />Economic Developers Council of Ontario (EDCO) Regional WorkshopNovember 25, 2010, Ingersoll<br />EDCO Annual ConferenceFebruary 1 – 3, 2011 Toronto<br />Economic Developers Association of Canada (EDAC) Fundamentals of Community Economic Development- Year One, A week long program in May 2011.<br />Southwest Economic Assembly (SWEA) June 9-10, 2011, Guelph<br />
  56. 56. Thank you!<br />Mellor Murray Consulting<br />519-784-7944<br />amurray@mellormurray.ca<br />.<br />Aileen Murray Ec.D. (F)<br />Middlesex County<br />519-434-7321 x 2347<br />amurray@investinmiddlesex.ca<br />

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