Swan Hills Opportunity Seminar Summary Report

Keyano Centre, Swan Hills

March 10-12, 2005

Town of Swan Hills

Table of Contents

Introduction Ray Danyluk, MLA Lac La Biche-St. Paul Chair of the Northern Alberta Development Council………………………………3 Welcoming Remarks Honourable Ken Kowalski, Speaker of the Legislative Assembly, MLA Barrhead-Morinville-Westlock ........................................................................4 Luncheon Speaker Honourable Pearl Calahasen; Minister of Aboriginal Affairs and Northern Development, MLA Lesser Slave Lake .....................................................5 Snowmobiling Activities in Alberta Louise Sherren, Executive Director, Alberta Snowmobile Association....................6 ATV Activities in Alberta Cal Rakack, President, Alberta Off-Highway Vehicle Association ..........................7 Seniors Housing Market Al Galbraith; Housing Developer ..............................................................................8 Process for Developing Seniors’ Lodging Terry Langis, Rotary House – Fort McMurray..........................................................9 How to Start a Successful Resort Alan Skoreyko, General Manager, Cougar Rock Resort...........................................10 Using Waste Heat to Operate Greenhouses Jim Calpas, Alberta Agriculture, Food and Rural Development ..............................11 Trace Back Meat Processing Plant Doug Borg, Alberta Value Chain Cooperative ..........................................................12 Using Wood Chip By-products to Create Marketable Commodities Con Dermott, Forestry Consultant.............................................................................13 Community Futures Roxanne Harper; Manager, Yellowhead East Business Development Corporation...14 How Tourism for Swan Hills Benefits Adjacent Communities Blain Sepos; Marketing Director, Travel Alberta North ...........................................15 How ATV and Snowmobile Trails are Tourism Draws Dale Holub; Councillor, Swan Hills ..........................................................................16

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Opportunity Seminar Overview The NADC sponsors Northern Opportunities Seminars throughout Northern Alberta. Open to the public, the seminars are targeted at municipal and Aboriginal leaders, industry, businesses and community members who contribute to the growth of the region. Delegates from Alberta attended the Northern Opportunities Seminar for the Swan Hills Region on March 10 and 11, 2005, in the Town of Swan Hills. The event provided an excellent opportunity for representatives from communities, government, industry and business development organizations, to come together to network with their peers, share information and become more aware of employment and business opportunities in the region. The Northern Alberta Development Council (NADC) held the Seminar in cooperation with the Town of Swan Hills, GROWTH Alberta, Woodlands County, the Swan Hills Snow Goers, and the Community Futures Network Society of Alberta (CFNSA). Local organizational efforts and involvement ensured the event’s success. The Honourable Ken Kowalski gave the keynote address on March 10 while the Honourable Pearl Calahasen, Minister of Aboriginal Affairs and Northern Development was the luncheon keynote speaker on March 11. Presentations made on March 11th covered a range of topics including seniors housing, developing seniors lodging, starting successful resorts, greenhouse opportunities, meat processing, wood chip by-products, community futures, tourism, and snowmobile and ATV use. Opportunities and barriers in each theme were presented.

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Introduction

Ray Danyluk, MLA Lac La Biche-St. Paul Chair of the Northern Alberta Development Council. Mr. Danyluk was appointed Chair of the Northern Alberta Development Council on December 15, 2004. He is also a member of the Standing Policy Committee on Agriculture and Municipal Affairs. On behalf of the Northern Alberta Development Council, Ray Danyluk opened the March 2005 by welcoming participants to the Swan Hills Opportunity Seminar. Mr. Danyluk discussed his recent appointment as Chair of the NADC and what he brings to the position. He noted the purpose of the Opportunity Seminar was a means to improve northern development by helping communities gain a better understanding of seniors’ housing and helping them find and promote value added opportunities. Northern Alberta Development Council administers the Northern LINKS program, the Bursary Program and Opportunity North. The Northern LINKS program is designed to encourage northern Alberta students to complete high school and make a successful transition to post-secondary education. The NADC Bursaries fund northern students attending post secondary institutions. Bursaries are for: northern students; students who will work in the north after graduating; and medical students who will also work in the north. The purpose of Opportunity North is to provide promotional materials to aid northern employers in recruiting skilled labour to the North. The resource may also be utilized by school career counsellors in northern Alberta. The Northern Alberta Development Chair Ray Danyluk advised that the Minister of Aboriginal Affairs and Northern Development, the Honourable Pearl Calahasen, will be the luncheon speaker the next day. He thanked Opportunity Seminar speakers and delegates for attending.

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Welcoming Remarks Honourable Ken Kowalski, Speaker of the Legislative Assembly MLA Barrhead-Morinville-Westlock. First elected to the Alberta Legislature in a 1979 by-election, Ken Kowalski began his eighth term on November 22, 2004. In 1997 Mr. Kowalski became Speaker of the Legislative Assembly. In 2001 he was re-elected to the post by acclamation. Ken Kowalski, as a strong advocate of rural development, noted regional economic development initiatives are of particular interest to him. Alberta is a province with a strong and growing economy. While one might assume that economic development is not necessary such activities may be even more critical at this time. Alberta is thriving but the global marketplace is changing and Alberta must change accordingly. To address these dynamics the government developed a 20-year plan. The plan includes an economic strategy titled, Securing Tomorrow’s Prosperity, which focuses on broadening the Alberta economic base through expanding value-added manufacturing, increasing innovation and building knowledge-based industries. Key elements to Alberta’s economic development, and a focus of this Opportunity Seminar, are the forging of robust regional economies through collaboration. Examples of this include the Grizzly Regional Economic Alliance Society (GROWTH) and Alberta Economic Development’s regional offices and their support of AlbertaFirst.com. Through this seminar and other forums for economic development, new opportunities and approaches that will keep the Swan Hills region and all other regions in the province at the forefront of economic development will be found.

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Luncheon Speaker Honourable Pearl Calahasen; Minister of Aboriginal Affairs and Northern Development, MLA Lesser Slave Lake Pearl Calahasen was elected to her fifth term as the Member of the Legislative Assembly for Lesser Slave Lake on November 22, 2004. She was subsequently re-appointed Alberta’s Minister of Aboriginal Affairs and Northern Development. Minister Pearl Calahasen announced that she is working closely with MLA Doug Griffiths on rural development. Good land, resources and people are making the government’s plans work. The goal is to involve the aboriginal population and other northerners, especially since the aboriginal labour pool is largely untapped. The north is Alberta’s economic engine. Links need to be reinforced in such areas such as northern British Columbia, northern Saskatchewan and the Northwest Territories to facilitate the north’s economic development and provide access to the human resources necessary for success. Projects in these neighbouring jurisdictions also benefit Alberta. For instance Alberta is able to take advantage of pipelines originating in the Northwest Territories. Strategies are being devised to maximize Alberta’s involvement to ensure that small communities benefit where pipelines traverse. Saskatchewan has proposed a northern highway connection to Fort McMurray to further develop the oil sand industry. In British Columbia, rail links from Peace Country to Dawson Creek to Prince Rupert would provide more direct shipping routes. The Northern Alberta Development Council is working to have all these links realized. The Minister strongly emphasized joining business with under-utilized labour from the Aboriginal communities. This mutually beneficial relationship would supply Alberta communities with education and training to upgrade their skills, while businesses would gain access to the trained labour they require to operate efficiently.

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Snowmobiling Activities in Alberta Louise Sherren, Executive Director, Alberta Snowmobile Association Louise Sherren has been involved in the snowmobile industry for over 18 years. She has enjoyed traveling to all corners of the province promoting safe snowmobiling. The snowmobile industry, which began in Canada, has the opportunity to attract visitors to rural areas as well as provide recreation to area residents. Consequently snowmobiles should be welcome and snowmobile users should have easy access to suitable areas. Businesses, Chambers of Commerce and other stakeholders should be involved in the sector’s development and snowmobile clubs should have the resources needed to operate like professional businesses. Ms Sherren discussed how snowmobile users are more responsible than stereotypes indicate. However, the industry faces considerable challenges around risk management and insurance. Insurance is almost unaffordable for organizations and soon it may be unattainable. The government should be lobbied to change the liability and trespassing acts. The maintenance of trails is also an issue for the industry. Volunteers are burning out building and maintaining trails. There are thirty snowmobile clubs in northern Alberta. All Terrain Vehicle (ATV) clubs use snowmobile clubs’ trails and work with the snowmobile clubs at maintaining them. Maintenance is not enough; the Alberta Snowmobile Association wishes to see the trail system expanded. Competition is also coming directly from Saskatchewan and British Columbia who are marketing into Alberta to go snowmobiling in their provinces. Alberta needs to keep Alberta snowmobiles in Alberta while increasing snowmobiling tourism from outside the province. To do so all the stakeholders need to work together. Safe parking and staging areas for the snowmobile users need to be provided.

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ATV Activities in Alberta Cal Rakach, President of the Alberta Off-Highway Vehicle Association Calvin Rakach is a native Albertan who spent his childhood living on the ‘Oil Patch Over-seas Circuit’. Mr. Rakach has over 25 years experience in Alberta involved with environmental management, reclamation, public affairs and as a land agent. Mr. Rakach considers access management to be very important. He sees a substantial difference between northern Alberta and southern Alberta. Access management is driven more by urban issues in the south. All Terrain Vehicles (ATVs) can do considerable damage to the ground. Poker rallies should be held on frozen or dry ground. With responsible use ATVs can be used in an environmentally friendly manner. Responsible use means that users have to be aware of what kind of terrain they are going over to avoid damage. A working plan for trail management focusing on responsibility and stewardship has to be created. It should take into account trails created by mining and forestry in the south and seismic lines in the north. Using old forestry roads once harvesting is done is better than cut lines. They avoid creeks, rivers and marshes and other significant ecologically sensitive areas. He let the participants know that a three-year trail inventory has been initiated. It will allow for a prioritization of inventories in a Geographic Information System (GIS) database. Users will be able to look in detail at trails and determine their purposes whether for recreational off-road traffic, ATV use, hiking or horseback riding. The database will also be used for long term community plans. More than just an inventory is needed. Trails and bridges are needed to protect the environment. Cal Rakach finished his presentation by saying that users who want to be responsible have difficulty doing so because they don’t know: where trails go, the condition of trails or whether trails cross private land. When people work together they can reach considerable heights. This industry needs greater cooperation among stakeholders.

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Seniors Housing Market Al Galbraith, Housing Developer Mr. Galbraith was born, raised and educated in Kelowna, B.C. He graduated from the University of British Columbia with Bachelors of Commerce Degree in marketing. He became a realtor and developer after leaving Shell Canada Ltd., working mostly in smaller centres in British Columbia. Al Galbraith spoke on marketing, planning, advertising and the issues that arise. The purpose of his presentation was to offer guidance on those issues. Mr. Galbraith works with developers, receivers, aboriginal communities and others in partnerships or as a buyer. He frequently works on projects where housing has been bought by a town from a resource company and where the town is uncertain on how best to develop that housing. He also works on failing projects that are in receivership and turns them into successful and profitable endeavours. Important aspects of housing development are advertising and public relations. For advertising he recommends monitoring the demographics of the people responding to them; remove the ads that are not receiving an adequate response rate and focus on those that do. For public relations he recommends a good sales team of energetic local people to put together a campaign that promotes the strengths and advantages of their community.

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Process for Developing Seniors’ Lodging Terry Langis, Rotary House – Fort McMurray Mr. Langis was born in England, raised in Canada, and moved to the United States in for his post secondary education. Mr. Langis has an under graduate degree in Architecture and a graduate degree in Urban and Regional Planning. He has worked in the design, planning and development industries since the late 1960’s in California, Hawaii, Australia, and now Alberta for both the public and private sectors. Terry Langis spoke on his experiences with Rotary House Supportive Housing for Seniors in the Regional Municipality of Wood Buffalo Developing an alternative seniors’ residential living environment provides individualized personal health care services in a home-like atmosphere that would not otherwise be available. The objectives are to provide housing for seniors in a growing seniors’ housing market demand; share costs and responsibilities among all care givers; provide an effective use of resources and reduce risks to seniors living on their own while still ensuring their independence. Moreover, Mr. Langis indicated that to run a successful project it is important to demonstrate a need. In the Regional Municipality of Wood Buffalo 898 people over the age of 65 were identified as being in need of housing. This translated as a market potential for 44 to 74 units. It is important to acknowledge seniors’ living requirements. Choice, control, dignity, independence, maintaining self-esteem and having a role in the community are vital to seniors’ quality of life.

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How to Start a Successful Resort Alan Skoreyko, General Manager, Cougar Rock Resort Alan Skoreyko is a seasoned entrepreneur experienced in project delivery, management, and turning businesses around. He is known for his ability to identify the critical issues facing a business. Alan Skoreyko spoke on how to start a successful resort. The Cougar Rock Resort is a $700 million year-round tourist resort and conference centre being constructed west of Hinton near the gates to Jasper National Park. It took six and a half years to get approval for the project being built on land leased from Alberta. The resort will occupy 1,120 acres and offer hotels, retail, multiple tourist facilities and an eighteen-hole championship golf course. It will offer a unique lifestyle with a focus on accessibility and environmental stewardship. Mr. Skoreyko discussed the magnitude and opportunities for Cougar Rock Resort and how they will provide great benefits to the surrounding community as well as the province at large. The facilities will be a major, full-time employer in the Hinton region with on-going construction and the subsequent operation of the resort. He estimates the combined total regional impact would be in the range of $46 million a year.

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Using Waste Heat to Operate Greenhouses Jim Calpas, Alberta Agriculture, Food and Rural Development James Calpas was born in Brooks, Alberta. After graduating from the University of Alberta he worked in Fairview with Alberta Agriculture. Jim has over eight years experience as a greenhouse researcher and extension specialist with Alberta Agriculture at the Crop Diversification Centre South. Mr. Calpas spoke on using waste heat for use in commercial greenhouses. Conventional thinking is to use waste heat primarily as space heat for the greenhouse environment. Discussions and projects in the 1970s and 1980s and were centered around gas plants. In 2000/2001 the City of Medicine Hat considered supplying waste heat from electrical generation to greenhouses. Waste heat for use in commercial greenhouses in Alberta is potentially a good fit because industries produce waste heat while the Alberta greenhouse industry is looking for cost effective sources of energy to offset natural gas prices. With considerable greenhouse production expertise and the need for cost effective sources of energy, waste heat could be a commodity. From 1990 to 2001, Alberta’s greenhouse industry grew from 56 ha (138 acres) to 110 ha (271 acres). There remains an increasing demand for greenhouse product such as: bedding plants, cut flowers, pot flowers, vegetables and tree seedlings. Waste heat opportunities could provide such a source. Past challenges with greenhouse waste heat projects have included plant “shut-down” where a continuous source of heat cannot be guaranteed. A secondary heating system is then required. Sources of waste heat traditionally have been located further from markets, potentially resulting in a competitive disadvantage by placing the greenhouses further away from packing houses. In many cases, sources of waste heat are also sources of carbon dioxide. Carbon dioxide emissions are a liability to industry but are a requirement for greenhouses to improve production. Increasing the carbon dioxide levels in the greenhouse from 350 ppm to 750 ppm can result in a 30% yield increase in tomatoes. Waste heat can be a boon to the greenhouse industry if all issues are taken into consideration and the advantages and disadvantages of alternatives are carefully weighed.

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Trace Back Meat Processing Plant Douglas Borg, Alberta Value Chain Cooperative Borg Management Services Ltd. supply management and consultation services to the Alberta Value Chain Cooperative. Their goal is to have the first Trace Back Meat Processing Plant in Alberta. Mr. Borg spoke on a business model for the full value chain - Alberta Value Chain Cooperative Limited (AVCC). The implementation of the full value chain will involve six centres of function: an administration centre, a slaughter centre, a distribution centre, a fabrication and fine-cutting centre, a value-added centre and a retail centre.

The administration centre will be located in Fort Assiniboine and will house the corporate offices. The slaughter centre will have kill floor expertise, interim contracting of kill spots and quality assurance. It will be operated under European Union protocols. The distribution centre will house logistics expertise, shipping and receiving along with storage and inventory management. The fabrication and fine-cutting centre will have expertise in production and quality-assurance and will prepare cuts as per processing plans. Value-added centres will house a burger shop and a sausage shop to make use of animal trim and additional value-added products. Mr. Borg explained the strategies for making trace back meat processing a success. They include retail centers such as a storefront in Fort Assiniboine, mobile store for web sales and farmers’ markets with stores in various locations in the province – AVCC owned or “franchised” as best fits circumstances. Distinguishing features of AVCC include: risk management and independence; having a marketing agency; managing product from gate to plate; developing a price pooling program and establishing partnerships like Woodlands County, Iron Creek and Farmer’s Gate. It was also noted that AVCC is a non-profit organization with no “middle men”. Consumers benefit from a quality assured product that is traceable back to the producer. Employees benefit from being paid a good wage. This will help to develop the employee loyalty that creates a stable workforce. The community benefits from the creation of rural development and population growth to keep schools open.

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Using Wood Chip By-products to Create Marketable Commodities Con Dermott, Forestry Consultant Conway Dermott obtained his BSc Forestry from the University of Montana in 1964. He has had a very extensive forestry career spanning 33 years with the Alberta Government, where he began as a forester in northern Alberta. His positions have included: the Director of Reforestation and Reclamation for the Province, Director of Timber Management and Director of Forest Products. Vanderwell Contractors (1971) Ltd. has implemented innovative forest practices in order to achieve high level utilization and environmental stewardship. The company has done so by introducing cut to length harvesting, commercial thinning, under-story protection, mixed wood management and a private woodlot program. It investigated using wood residue to develop new products such as finger joints, backboard, gasification and co-generation. The company’s investigation found that there are insufficient resources and capital investment to produce value added products. Bio-products require a large amount of research, capital investment and have an uncertain market. Wood residue is a better option because resources are available and it is an opportunity to reduce environmental impacts and to turn expenses into revenue. Bark is being used for co-generation. Wood shavings are being used in the agriculture and oil and gas industries to produce wood pellets for livestock bedding, wood burning stoves and for community central heating. The long-term plan is to utilize the remaining wood residue to produce heat for the company’s dry kilns, drum dryer and entire facility as well as produce power for the Mitsue manufacturing facility. There is also potential to market surplus power.

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Community Futures Roxanne Harper, Manager, Yellowhead East Business Development Corporation Roxanne Harper has been with Yellowhead East since 1993, first as a Business Analyst/Assistant Manager and then in her current position as Manager since July 2000. Ms. Harper advised that Community Futures Development Corporations are non-profit organizations guided by volunteer Boards of Directors staffed with Business Professionals. They are engaged in helping develop and implement community-based economic development strategies. Each Community Futures Development Corporation (CFDC) has a different name depending on their location. Examples include the Peace Country Development Corporation in Peace River and the Yellowhead East Business Development Corporation in the Village of Sangudo. There are twenty-seven CFDCs in rural Alberta covering a population of one million with 455 volunteer board members and 232 staff. Nearly 500 loans, valuing almost fourteen million dollars, were dispersed while creating 1,772 jobs in 2001. CFDCs have helped clients gain access to other sources of business capital and helped communities gain access to other sources of Community Economic Development (CED) project funding. Twenty-four CED projects were selected for case study. Each dollar provided or loaned by a CFDC leveraged an additional $15.72 in public and private sector spending. The economic impact from CFDC services is significant. CFDCs also: provide leadership and expertise; build partnerships and facilitate community involvement; contribute seed funding; and provide project administration and support. In summary, CFDCs are community driven, are well established, provide services to 100% of rural Alberta and help clients access funding to start or expand businesses.

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How Tourism for Swan Hills Benefits Adjacent Communities Blain Sepos, Marketing Director, Travel Alberta North Blain Sepos studied Tourism Management at Malaspina University College in Nanaimo where he graduated on the Dean’s List. Blain Sepos gave details about Travel Alberta. He noted that Alberta tourism is big business. Travel Alberta encourages cooperative marketing through Tourism Destination Regions (TDRs). The key approaches are to: find partners, contact the TDR with an idea, develop a draft proposal, fine-tune the proposal with the TDR, implement activities and then evaluate the success. Cooperative marketing leads to success. Mr. Sepos presented the example of the promotion of the Golden Triangle snowmobile circuit to outdoor recreationists from Alberta, British Columbia, and Saskatchewan. The marketing endeavour was intended to increase exposure for the Golden Triangle snowmobile circuit. This was accomplished by developing an integrated plan including: expanding the trail map/guide, advertising in SnoRiders West, expanding the trail’s presence at Western Canadian snowmobile shows and working with a non-traditional partner on a point-of-sale promotion at snowmobile retailers. They strived to sell 200 “Sled and Stay” packages and receive 2000 contest entries. Mr. Sepos indicated that it was a successful project because of the increased profile achieved. Mr. Sepos advised tourism promoters to contact Travel Alberta with marketing ideas. The funding and the expertise needed to make marketing projects a reality are available for good ideas.

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How ATV and Snowmobile Trails are Tourism Draws Dale Holub, Councillor, Swan Hills Dale Holub is currently serving his third term as a Councillor for Swan Hills. An avid outdoorsman, he has taken on developing and promoting the Swan Hills Trail System. He has forged effective partnerships with the Swan Hills Forest Communication Group, Fire Smart, Economic Development and Tourism, and the Swan Hills Snow Goers. Mr. Holub noted that Swan Hills has a number of lakes and trails that make excellent destinations. These lakes are: Tamarack Lake, Jesse Lake, Marigold Lake, Tea Lake and Roche Lake. Each lake has a campground, and the campgrounds are connected by trails. The trails around Swan Hills include: the Golden Triangle, Trans Canada Trail, Tamarack, Marigold, Morse Loop, Swan Dive Loop, Trapper Lea’s Loop and Freeman Loop. Hr. Holub addressed the potential market for the lakes and trails in the Swan Hills area. With more than one million people living in the Edmonton area there is great potential. As Swan Hills proceeds to develop its product it is looking for additional partners to help:

• Identify and inventory all trails within the Forest Management Agreement; • Build a trail inventory Geographical Information Systems database for long-term

management of the trail system; • Seek funding opportunities; • Identify current areas of concern and develop short term plans to achieve our

goal; • Develop a long term communication plan; and • Construct a linked cross-regional recreational trail system that can be sustained.

Mr. Holub concluded his presentation by commenting that a changing society has made it clear there is a need for motorized recreation. Vegetation has already been cleared for pipelines, power lines and survey cut lines. Working together, to convert these track ways into trails, will help preserve the forest and the environment and promote recreational areas.

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