ontario west municipal treasurers' forum
DESCRIPTION
A refresher on economic development and investment readinessTRANSCRIPT
Investment Readiness
A Refresher on Municipal Economic Development
Ontario West Municipal Treasurers’ Forum
Oct. 7, 2010
OutlineWhat is economic
development?
Components of an economic development strategy
Key Factors in Site Selection
Investment Readiness Assessment Good, Bad & Ugly
Opportunities to learn more
Economic Development Defined
A program or group of policies, and/or activities that seek to improve the economic well-being and quality of life for a community.
Create and retain jobs and provide a stable tax base.
Wealth Generation
Bring in new money
Attracting or starting new businesses
Attracting visitors who spend their money in region
Encouraging local businesses to sell their products outside the region
Keep existing money
Retain existing businesses
Buy local programs
Expand/ attract businesses that address leakage
Components of an Economic Development Strategy
Investment Attraction
Business Retention & Expansion
Small Business & Entrepreneurial Development
Tourism Programs Tourism Investment Destination Marketing
Downtown Development
Infrastructure Projects
Components of an Economic Development Strategy
Investment Attraction
Usually accounts for less than 10% of an economic development officer’s time.
Consumes the lion’s share of the economic development budget.
Source of New Jobs(Source: RUPRI Centre for Rural Entrepreneurship)
Start Ups44%
Existing Busi-
nesses55%
Corporate Relo-cation
1%
Components of an Economic Development Strategy
Business Retention & Expansion
Corporate Aftercare – Working with existing companies to secure opportunities for expansion.
One of the most effective ED programs
Export development
Import replacement (shop local) programs
Components of an Economic Development Strategy
Small Business Development
2.35 million small businesses in Canada
150,000 new businesses open each year and 130,000 close each year
With early intervention (basic business planning) survival rates can be dramatically improved.
Components of an Economic Development Strategy
Tourism Programs
Destination Marketing
Tourism Investment
Components of an Economic Development Strategy
Downtown/Commercial Development
Responding to changing trends in retail and commercial development.
Growth of big box outlets - new franchise opportunities
Community Improvement Plans
Business Improvement Areas
Components of an Economic Development
StrategyInfrastructure/
Special Projects
Connectivity initiatives
Post-secondary education
Workforce development
The Creative Economy
Rise of the Creative Class
• “Our economy is shifting away from jobs based largely on physical skills or repetitive tasks to ones that require analytical skills and judgment.”
• Talent, technology, tolerance
“Ontario in the Creative Age” - Martin Prosperity Institute, University of Toronto, February, 2009.
Dr. Richard Florida
Other Duties?
Physician Recruitment
Resident Attraction (seniors, youth, new immigrants)
Cultural mapping
Communications / Branding
Signage Strategies
Communities in Bloom
Brownfield Redevelopment
Special Events (Plowing Match)
Site Selection FactorsP
erce
nt
Source: Area Development 2009 Corporate Survey of Site Selectors
Factors that rated as ‘very important’ or ‘important’
Labo
ur C
osts
Highw
ay A
cces
sibili
ty
Tax
exem
ptio
ns
Ener
gy a
vaila
bilit
y & co
sts
Corpo
rate
tax
rate
Availa
bilit
y of
skill
ed la
bour
Occup
ancy
or c
onst
ruct
ion
cost
s
Stat
e & lo
ca in
cent
ives
Availa
bilit
y of
adv
ance
d IC
T se
rvice
s
Inbo
und/
outb
ound
shi
ppin
g co
sts
Low u
nion
pro
file
Availa
ble
land
Avaia
lbili
ty o
f bui
ldin
gs
Right
to w
ork
stat
e
Prox
imity
to m
ajor
mar
kets
Expe
dite
d or
fast
-trac
k pe
rmitt
ing
Envi
rom
enta
l reg
ulat
ions
Availa
bilit
y of
long
-term
fina
ncin
g
Prox
imity
to sup
plie
rs
Trai
ning
Pro
gram
s
Raw m
ater
ials a
vaila
bilit
y
Availb
ility
of u
nski
lled
labo
ur
Acces
sibi
lity
to m
ajor
airp
ort
Prox
imity
to te
chni
cal u
nive
rsity
Railro
ad se
rvice
Wat
erway
or o
cean
port
acce
ssib
ility
0
10
20
30
40
50
60
70
80
90
100
Top 10 Site Selection FactorsOver 85% Very Important or Important
1. Labour costs
2. Highway Accessibility
3. Tax Exemptions
4. Energy availability & costs
5. Corporate Tax Rate
Top 10 Site Selection FactorsOver 80% Very important or important
6. Availability of skilled labour
7. Occupancy or construction costs
8. State & local incentives
9. Availability of advanced ICT services
10.Inbound/outbound shipping costs
Quality of Life Factors
Low crime rate
Health care facilities
Housing availability
Housing costs
Ratings of public schools
Climate
Recreational opportunities
Colleges & universities in the area
Cultural opportunities
Investment Readiness Assessment
EDCO
600 members
Municipal, provincial, federal governments
Business Associations
Workforce Development Organizations
Industrial, commercial realtors and land developers
Partnership with the Ministry of Economic Development
Conducted in 2007 & 2008
Mock site selection exerciseRequest for ProposalSite visit
Community Report Cards
Workshops
Report on Best Practices
Investment Readiness Assessment
Investment Readiness What Does It Mean?
On the radar
Can meet Site Consultants’ needs
Able to close the deal
Broad Support for the Economic Development Mission• Provincial associations• Provincial involvement• Provincial data resources
Regional Branding / Attraction Strategies• Regional success stories
Ontario East, CTT, GTMA• Regional economic development
strategy• Most communities are poorly
represented at this macro level
#1 – On the Radar?
#2 Meet Site Consultants Needs
Up-to-date, forward looking vision for Community
Regional approach – coordinated marketing and attraction efforts
Professional assistance - high standard when working with site consultants & prospects
Data rich - robust data resources
# 2 Meet Site Consultants Needs
Know your community – keep site, city and regional maps up-to-date
Involve Real Estate Community –make brokers, property owners & developers part of the team
Educated Stakeholders – board members, politicians, government officials, business community
Professional – responsive, punctual, honest, thorough in all dealings
Community Reception 35
Labour 50
Transportation 35
Utilities 35
Community Appearance 35
Sites/Buildings 60
Schedule 15
Community Stability 20
Intangibles 15
TOTAL 300
Investment Readiness Scoring
How did we do?
Request for Information
Community Visit
73%
76%
The GoodLocal Improvements Underway
The GoodDevelopable land offered with reasonable cost and development fees
The GoodGood Utility Infrastructure
The GoodAttractive, thriving downtown
The GoodProven connection between training resources and industry
The BadSite not cleared for development, low power lines straddle future entrance
The BadHigh cost land and development fees
The BadUtility infrastructure not in placeCapacity not available for new industry
The BadLack of connection between industry and local training resources
The UglyLax rules for outside storagemakes industrial parks less desirable
Long abandoned hospital is testimony to a breakdown in local leadership
The UglyExisting Building not ready for a new tenant
Long abandoned hospital is testimony to a breakdown in local leadership
The UglyBrownfield site not ready for development
Long abandoned hospital is testimony to a breakdown in local leadership
#3 Can we close the deal?
Questioned financial ability to assist with infrastructure improvements, training funds, etc.
• Prolonged funding or planning decision could drive project to another community
Key Finding: Low Level of Community Preparedness
Limited number of “shovel ready” sites and buildings
Many lacked up-to-date economic development strategy with industry targets
Poor quality community profiles
Web sites provided insufficient information and functionality
Weak linkages between economic development and labour force development
Development fees and land costs potentially prohibitive
Many local politicians and senior administrators not aware of the importance of community preparedness
Regional cooperation underdeveloped compared to US and Europe
Key Finding: Low Level of Community Preparedness (Cont’d)
Key Recommendations
Education
Website
Certification Program
It’s a new day in economic development
Want to learn more? Economic Developers Council of Ontario (EDCO)
Regional WorkshopNovember 25, 2010, Ingersoll
EDCO Annual ConferenceFebruary 1 – 3, 2011 Toronto
Economic Developers Association of Canada (EDAC) Fundamentals of Community Economic Development- Year One, A week long program in May 2011.
Southwest Economic Assembly (SWEA) June 9-10, 2011, Guelph
Thank you!
Mellor Murray [email protected]
.
Middlesex County519-434-7321 x [email protected]
a
Aileen Murray Ec.D. (F)