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ForwardLookingStatementsThe following document is presented for informational purposes only. It is not intended to be, and is not, a prospectus, offering memorandum or private placement memorandum. The information in this document may not be complete and may be changed, modified or amended at any time by the owner, and is not intended to, and does not, constitute representations and warranties of the proposed business.

The information in this document is also inherently forward‐looking information. Among other things, the information:

(1) discusses the owner’s future expectations;

(2) contains projections of the owner’s future results of operations or of its financial condition; or

(3) states other “forward looking” information.

There may be events in the future that the owner cannot accurately predict or over which the owner has no control, and the occurrence of such events may cause the owner’s actual results to differ materially from the expectations described herein.

This document constitutes confidential and proprietary information and may not be copied, faxed, reproduced or otherwise distributed by you, and the contents of this document may not be disclosed by you, without the proponent’s express written consent.




Sechelt Community Projects Inc. Resolution

Chronological No. May 28

th, 2012

File Reference No. Economic Development Committee

That the Board of Directors of the Sechelt Community Projects Inc.

Date of duly convened meeting

Y 2012

M 05

D 28

Province British Columbia

Whereas the Sechelt Community Projects Inc. engaged in a request for proposals to invest the proceeds from the harvest of wood from the Sunshine Coast Community Forest into valued community projects in the Sunshine Coast Regional District in 2011 and received a limited response;

Whereas the Board of Directors for the Sechelt Community Projects Inc. engaged Patrick Marshall, Capital EDC Economic Development Company to assess and report on the most likely community values and deliver a report on the prospects for economic diversification associated with the investment of the proceeds of the sale of Sunshine Coast Community Forest wood;

Therefore be it resolved that the Board of Directors received the report entitled “Sunshine Coast Community Forest Economic Diversification Plan 2012”; and;

Be it further resolved that the Board of Directors will take the recommendations under advisement when the opportunity to invest the proceeds of the sale of wood harvested from the Sunshine Community Forest arises.

For the Sechelt Community Projects Inc. Board of Directors

Glen Bonderud, ChairBoard of Directors

For the Sechelt Community Projects Inc. Management Team

Dave Lasser RPFGeneral Manager

For Capital EDC Economic Development Company

Patrick N. MarshallConsulting Economic Developer




ProfessionalResume

CapitalEDCEconomicDevelopmentCompanyPatrickNelsonMarshallBESSURP|EconomicDeveloper

Experience Patrick has conducted over 300 business retention, expansion, recruitment, in‐bound investment and operations in two Provinces in Canada. He has worked on the support of the development of hundreds of thousands of dollar’s worth of industrial, commercial, residential and government investment, and more than 300 customers projects for local government and industry associations. Patrick combines his understanding of urban and regional processes with the pragmatic, and vision for detail required to ensure successful Growth, Planning and Sustainability [GPS] for both private and public sector organizations. Past Employment Patrick’s past work experience includes: Chief Executive Officer, Ocean Industries British Columbia from 2007 to 2009, Chief Executive Officer and Economic Developer for the Campbell River Economic Development Corporation from 2000 to 2007, Transition Manager, North Central Island Tourism Organization from 1999 to 2000, Manager, Property & Economic Development for the City of Campbell River from 1989 to 2001, Director of Marketing, Bowman Boulevard Strategic Real Estate Marketing Ltd. Toronto from 1987 to 1989, Urban Planner for the City of North York, Metropolitan Toronto from 1979 to 1987. Education Patrick completed a Bachelor of Environmental Studies Honours Degree from the School of Urban and Regional Planning SURP at the University of Waterloo in Ontario, Canada in 1983. He was engaged in the Internship Program at the University and served four terms as an Engineering and Planning Intern with the City of North York, Metropolitan Toronto, Ontario, Canada. Patrick also attended Year 1 and Year 2 of the University of Waterloo Economic Development program sponsored by the Economic Developer’s Association of Canada and associated workshop’s. He was inducted as a Member of the Canadian Institute of Planners MCIP in 1984 and a Member of the Ontario Professional Planners Institute also in 1984.

Service Patrick has a strong track record of volunteer service: He currently serves as the Consulting Economic Developer to Ocean Initiatives British Columbia and the Coastal Community Network; He is the Chairman of the Board of Directors for Small Business BC and the CANADA BC Business Service Centre Society since 2007; Vice President of the Economic Developer’s Association of British Columbia 1996 to 1997; President of the Vancouver Island Economic Developers Association 1993‐1995; Director for the Economic Developers Association of Canada 1987‐1988; and was selected as the Economic Developer of the Year 2007 by his peers at the Economic Development Association of British Columbia. Business and Economic Development Services Review of economic development committee work | internal audit

Cluster, Supply Chain & Industrial Sector Development Strategies

Web Site conversion, transition from static to sales orientation

Local and Regional Economic Scan Reports

Confidential Business Retention and Expansion results

Sales Training for Economic Developers

Recommendations for Economic Diversification Program Re‐Start

In‐bound Investment and Business Recruitment processes and training

Head Hunting and Professional Searches for Public and Private

Review and Assessments of Boards of Directors

Growth, Planning & Sustainability Management Plans

Support to Economic Development Officers

Relationship mending between Local Government & Boards

Business Meeting Hosting Interest Matching in Vancouver and Victoria

Retained monthly consulting Economic Developer

Workforce Strategy Reports Business Introductions to New Markets Local Area Procurement Tools Familiarization Tour Management International Tour Coordination Sister City Relationship Development

CapitalEDCEconomicDevelopmentCompany4341 Shelbourne Street Canada’s Remembrance Road Victoria, British Columbia CANADA V8N3G4

Telephone: +1 250 595‐8676 Toll Free: + 1 877 595‐8676 eFacsimile: +1 866 827‐1524

Mailto: [email protected] Mobile: www.patrickmarshall.tel

Web: www.capitaledc.com LinkedIn:

ca.linkedin.com/in/patricknelsonmarshall Search: patricknelsonmarshall




TableofContents

iv. Briefing Note .................................................................................................................................................. 12 1.0 EXECUTIVE SUMMARY .................................................................................................................................. 13 1.1 Environmental Scan ............................................................................................................................. 13 1.2 Plan Objective ...................................................................................................................................... 14 1.3 Assessment of Opportunities ............................................................................................................... 14 Existing Strategies and Operations ............................................................................................................. 14 Stakeholder Interviews ............................................................................................................................... 15 Opportunities Most Relevant to the Sunshine Coast Community Forest .................................................. 15

1.4 Diversification Options ......................................................................................................................... 15 1.5 Recommendations ............................................................................................................................... 16 Short‐term Action ....................................................................................................................................... 16 Long‐term Action ........................................................................................................................................ 17

2.0 INTRODUCTION ............................................................................................................................................ 19 2.1 Purpose of the Project .............................................................................................................................. 19 2.2 Plan Statements include: .......................................................................................................................... 19 Overarching Plan Governance: ................................................................................................................... 19 Plan Vision: ................................................................................................................................................. 19 Our Plan Mission: ....................................................................................................................................... 19 Sunshine Coast Community Forest Market Position Objectives: ............................................................... 20

2.3 Approach and Methodology ..................................................................................................................... 20 Research Stage 1 ........................................................................................................................................ 21 Strategy Stage 2 ......................................................................................................................................... 21 Building Stage 3 .......................................................................................................................................... 21 Implementation Stage 4 ............................................................................................................................. 21 Assessment and Reposition Stage 5 ........................................................................................................... 21

2.4 Assumptions & Limiting Factors ............................................................................................................... 22 3.0 PROJECT CONTEXT ........................................................................................................................................ 23 3.1 Regional Economic Summary ................................................................................................................... 23 3.2 Wood Products and Services ................................................................................................................ 30 3.3 Forest Products and Services ................................................................................................................ 31

3.4 Comparison of Sunshine Coast to other Community Forests .................................................................. 32 3.4.1 Profile of Sunshine Coast Community Forest .................................................................................... 32 3.4.2 Other Community Forest Organizations ............................................................................................ 34 3.4.3 The Provincial Association ................................................................................................................. 34 3.5 Provincial Economic Development Context ......................................................................................... 35 3.6 Regional Economic Development Context ........................................................................................... 36 3.7 Local Sustainability Plan ....................................................................................................................... 37

4.0 ASSESSMENT OF DIVERSIFICATION OPPORTUNITIES ................................................................................... 38 4.1 Retention and Expansion .......................................................................................................................... 38 4.2 Recruitment .............................................................................................................................................. 38 4.3 Stakeholder Contact and Interviews ........................................................................................................ 39 4.4 Stakeholder Opinion ................................................................................................................................. 40 4.4.1 The Sunshine Coast Business Climate Survey Responses .................................................................. 40 4.4.2 Stakeholders Views and Attributes ................................................................................................... 40 4.4.3 The Top Ten List and need for Strategic Focus .................................................................................. 41 4.4.4 Business Activity 2011 Q3 ................................................................................................................. 41 4.4.5 Views on Regional Workforce ........................................................................................................... 42 4.4.6 Regional Change ................................................................................................................................ 43 4.4.7 Technology Talk ................................................................................................................................. 43 4.4.8 Management Team Dynamics ........................................................................................................... 43

4.5 The Sunshine Coast Focus Group Meeting Responses ............................................................................. 44 4.5.1 Physical Infrastructure ....................................................................................................................... 44 4.5.2 Human Capacity Infrastructure ......................................................................................................... 44




4.5.3 Community Capacity Infrastructure .................................................................................................. 44 4.5.4 Business Infrastructure | 90 day Actions .......................................................................................... 44 4.6 Wood User Stakeholders ...................................................................................................................... 44 4.7 Forest User Stakeholders ..................................................................................................................... 45

4.8 Opportunity Assessment Summary .......................................................................................................... 46 Strengths .................................................................................................................................................... 46 Weaknesses ................................................................................................................................................ 46 Opportunities ............................................................................................................................................. 46 Threats ........................................................................................................................................................ 46

5.0 ASSESSING SUNSHINE COAST COMMUNITY FOREST DIVERSIFICATION OPTIONS ....................................... 48 5.1 Options to be implemented within the Organization .............................................................................. 48 5.2 Options to be contracted by the Organization ......................................................................................... 50 5.3 Options to be partnered with other Organizations .................................................................................. 50

6.0 DIVERSIFICATION STRATEGY ‐ REFINING THE SUNSHINE COAST COMMUNITY FOREST VALUE PROPOSITION ............................................................................................................................................................................ 52 6.1 Diversification Objectives ......................................................................................................................... 52 6.2 Short Term Actions ................................................................................................................................... 52 6.3 Long Term Actions .................................................................................................................................... 53

7.0 IMPLEMENTING THE DIVERSIFICATION RECOMMENDATIONs .................................................................... 54 7.1 Economic Diversification Issues and Opportunities Long List Priorities by the Board of Directors and Staff ............................................................................................................................................................ 54 7.2 Economic Diversification Issues | Opportunities Short List .................................................................. 54 7.3 Economic Diversification Focus Areas .................................................................................................. 55 7.4 Economic Diversification Strategic Priority Work Program .................................................................. 55 7.4 Blueplanet Sustainability Check Up ...................................................................................................... 57 7.5 Strategic Plan Dashboard for External Purposes .................................................................................. 58

8.0 FINANCIAL ALLOCATIONS FOR DIVERSIFICATION PLANNING PURPOSES .................................................... 60 Appendix I ‐ Stakeholder Survey and Interviews ................................................................................................ 63 Appendix II ‐ Acknowledgments ......................................................................................................................... 67 Appendix III – Discussion Paper .......................................................................................................................... 68 Business Recruitment | Sunshine Coast Community Forest Focusing on Wood and Forest Value ........... 68 2 Market Position Statement ........................................................................................................................... 71 3 Identify Business Wish List ........................................................................................................................... 71 4 Create a Supportive Business Environment ................................................................................................ 73 5 Make the Environment Appealing ............................................................................................................... 73 6 Overcome Barriers to Business Investment in the Area ............................................................................ 74 7 Offer Incentives, not the kind you think ..................................................................................................... 74 8 Assemble the Creative .................................................................................................................................. 75 9 Deliver your story .......................................................................................................................................... 75 10 Assemble the Package ................................................................................................................................. 76 11 Being Site Specific ....................................................................................................................................... 76 12 Generate Leads ............................................................................................................................................ 76 13 Prospecting .................................................................................................................................................. 78 14 Personal Visits .............................................................................................................................................. 78 15 The FAM‐iliarization Tour or the “Quad Cab” ........................................................................................... 79 16 Make the Pitch ............................................................................................................................................. 79 17 Close the Deal .............................................................................................................................................. 79 18 The Move...................................................................................................................................................... 80 19 The Start ....................................................................................................................................................... 80 20 What to expect when you’re expecting .................................................................................................... 80 21 Repeat the Process ...................................................................................................................................... 80 Appendix IV – Survey Results ............................................................................................................................. 81 Appendix V – Focus Group Results ................................................................................................................... 120 Appendix VI – Raw Log Exports Explanation .................................................................................................... 123

Vancouver, September 26, 2011 .............................................................................................................. 123




Submitted to the Province of British Columbia on behalf of the Truck Loggers Association (TLA) September 15, 2011 ................................................................................................................................. 123 Log exports: The reality ............................................................................................................................ 123 How do we best apply the existing policy to meet current objectives? ................................................... 124 A Common Problem ................................................................................................................................. 124 Coastal Log Demand ................................................................................................................................. 125 Policy Vision .............................................................................................................................................. 126 To Contact the TLA: .................................................................................................................................. 126

Appendix VII – Remarks by Executive Director Russ Cameron ........................................................................ 127 Professional Resume ............................................................................................................................................ 5 Capital EDC Economic Development Company Patrick Nelson Marshall BES SURP | Economic Developer .... 5

ii.TableofFiguresFigure 1 Triple Bottom Line Approach to Sustainability ..................................................................................... 24 Figure 2 New Zealand Relationship between target dimensions and key indicators......................................... 25 Figure 3 Economic Dependency Changes from 1991 to 2006 – Sunshine Coast ............................................... 28 Figure 4 District of Sechelt Strategic Plan 2012 ‐ 2014 ...................................................................................... 29 Figure 5 Blueplanet Value Management System Trademark ............................................................................. 57

iii.ListofTablesTable 1 International Standard Industrial Classification of All Economic Activities (ISIC) .................................. 31 Table 2 Sechelt Draft Sustainability Plan Section 2 Thriving Economy ............................................................... 37 Table 3 Community Forest Economic Diversification Issues | Opportunities Long List ..................................... 54 Table 4 Community Forest Economic Diversification Issues | Opportunities Short List .................................... 55 Table 5 Community Forest Economic Diversification Focus Areas ..................................................................... 55 Table 6 Community Forest Economic Diversification Strategic Priority Work Program .................................... 56 Table 7 Blueplanet Sustainability Check Up Categories ..................................................................................... 57 Table 8 Community Forest Economic Diversification Strategic Dashboard ....................................................... 58 Table 9 Plan Implementation Draft Budget Estimates ....................................................................................... 60 Table 10 Plan Investments in Community Capacity and Infrastructure Estimated Budgets .............................. 62




January 21st, 2011

Glen Bonderud Chair, Economic Development Committee Sechelt Community Projects Inc. Sunshine Coast Community Forest 201 |204 ‐ 5606 Wharf Avenue PO Box 215 Sechelt, British Columbia CANADA V0N 3A0

Via email

Subject: Sunshine Coast Community Forest Corporation Recruitment Management Plan

Dear Mr. Bonderud:

My understanding of the objectives of this investment program includes the following two points:

‐ The Community Forest Corporation has established a "Community Forest Economic Opportunities Fund" to help foster and create economic development opportunities on the Sunshine Coast;

‐ These funds need to be leveraged by in‐kind and cash contributions by other organizations to aid in achieving the overarching goal of encouraging the creation of new ventures which will create economic benefits in the form of new property tax revenue, new employment opportunities in terms of direct, indirect and induced jobs; and tangible secondary benefits that are visible to the shareholder, the District of Sechelt and their constituents.

In support of this, Capital EDC Economic Development Company delivered a Decision Paper entitled “Business Recruitment | Sunshine Coast Community Forest” in which 21 steps to achieve successful recruitment of investment are outlined. Our initial consultation and subsequent conversations have made me aware that there are divergent expectations from a variety of interests in your community and I will be sensitive to those expectations as we move through the process.

I am also aware of the need to ensure that technology and process built for this plan are constructed by people who hold a business license in your jurisdiction and are located in the region in which the wood is sourced. I will do my best to ensure that resident businesses and qualified suppliers are given every opportunity to fulfill the requirements of this plan.

The purpose of this letter of engagement is to outline the details of the services to be provided by our company in facilitating an in‐depth program from identifying prospective partners through to building the pieces and resources required in each step. This can best be accomplished by the preparation of a Management Plan that will detail the requirements of the Community Forest Corporation and others and the scope of detail required for each stage.

I would also advise that when we have completed the plan, there will be assignments for a variety of organizations and people. I will also identify which elements of the Plan I can deliver under a separate agreement for implementation. My role at this point is to review




resources, conduct interviews, shape the framework and make recommendations to your committee. Other roles and deliverables may arise as we move through the process.

I have included a work plan that will cover off a six month period. My fee for the attached is $10,000.00 plus HST. I expect that the majority of the work will be completed by remote communication and that any travel and accommodation to Sechelt required by the Committee will be arranged by the Corporation, with the exception of mileage and per diem expenses which will be submitted for approval. Please also find a copy of references for your use. I would appreciate a signed copy of this communication sent to my efacsimile at +1 866 827‐1524 at your earliest convenience. Thank you very much for the opportunity.

Yours truly, Capital EDC Economic Development Company

Patrick Nelson Marshall Economic Developer

Capital EDC Economic Development Company

As to concurrence:

Accepted this date, January 25, 2011

Glen Bonderud Chair

Sunshine Coast Community Forest Corporation Economic Development Committee

Date January 25, 2011




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iv.BriefingNote

DATE: May 2012

PREPARED FOR: Dave Lasser RPF, General Manager

Topic: Community Forest Economic Diversification Plan

Capital EDC Economic Development Company was engaged to develop an approach to economic development for the Economic Development Committee of Sechelt Community Projects Inc. with respect to determining the relevance and feasibility of engaging in continued and coordinated economic development and diversification. The following report documents the findings of Capital EDC’s Economic Developer.

Issue: What should the Economic Diversification efforts of the Sechelt Community Projects Inc. look like?

The report demonstrates that coordinated and effective economic and diversification efforts are possible for the Sunshine Coast Community Forest Corporation, with some refinements to the process, terms of reference, relationships and resources at hand. The work completed to‐date is useful to bring forward into more conventional economic development frameworks. The Board of Directors, elected in November of 2011 will deliberate on the findings of this assessment and select the next course of action subject to a recommendation by the President and General Manager.

Background:

The Economic Development Committee engaged Capital EDC Economic Development Company to develop an economic development strategy at which revenues from Community Forest Operations were to be applied.

Patrick Marshall, Consulting Economic Developer visited the community on a number of occasions in the spring and summer of 2011 to shop the communities, conduct primary research and to develop what has become an economic diversification strategy for the Community Forest Corporation.

A decision to defer the delivery of the final plan after local government elections was made and the final report and plan summary have been presented for review by the Committee and the staff of SCPI.

Discussion:

The financial resources available to the Corporation have been applied to sustaining the organization during a low revenue period. Time is required to rebuild the financial resources to be deployed in this plan.

RECOMMENDATION:

The recommended option is to proceed with the first stage of the plan and develop the relationships and communications required in order to proceed with the investment of revenues over time.

PREPARED BY:

Patrick N. Marshall Economic Developer Capital EDC Economic Development Company

DATE: May 2012

APPROVED/ENDORSED BY

DATE:

SIGNED BY:




1.0EXECUTIVESUMMARY

1.1 EnvironmentalScanSechelt Community Projects Inc. [SCPI] was established during a time when local governments were seeking, as they still do, alternate means of revenue. Local Government proceeded through various stages of considering Casino’s, Port Development, Airport Development, Economic Development and other means of receiving revenue than property tax. Another factor in the establishment of a separate and autonomous community owned corporation was to be able to enter into third‐party development opportunities that are not considered core services in the local government context and to ensure that these investments would be free of cronyism, responsible not transparent, and accountable for decisions in the public interest.

Most community Forest organizations in British Columbia are designed to reinvest in the Community Forest, any proceeds from the sale of wood. Sechelt Community Projects Inc. has taken the step that they wish to reinvest in the regions Forest based economy with a view to diversifying the region’s economy, in the long term, from its dependency on transfer payments associated with the social supports from governments associated with retirement. It is reported that the Sunshine Coast economic base is dependent on more than 93% of local government taxes derived from residential use which places this regional economy amongst the highest dependent regional economies in Canada.

Public perception of Community Forests gets commandeered by political and partisan interests associated with the Major Tenure holders in British Columbia, with a focus on the export of raw logs. Industrial and Trade Union perceptions are changing to recognize that the export of raw logs supports long term employment objectives for the Forest Sector. This notion, combined with the fundamentals of Community Forest management revolving around “local” control of provincially held resources, creates great expectations for locally owned and operated organizations.

In a recent address to delegates at the Union of BC Municipalities, Russ Cameron, CEO of the Independent Wood Processors Association of British Columbia shared the following view of his organizations current standing:

“Update on the state of BC’s family owned, non‐tenured wood processors.

“Forty years ago, formed the Independent Wood Processors Association, or IWPA (formerly ILRA)

“We are all family owned, none of us have been given the renewable right to harvest the public’s timber, and we all buy our wood fibre on the open market at prevailing market prices.

“We are currently working with the Department of Foreign Affairs and International Trade Canada, Natural Resources Canada, and the Government of British Columbia on the implementation of the European Economic Union’s Legal Harvest legislation, similar pending legislation in Australia and China, possible changes to the United States of America’s Lacey Act, the current Australian anti‐dumping investigation, log export policy, consultations on the CETA, British Columbia Timber Sales, Category 2, Soft Wood Lumber Agreement extension or expiry, and the British Columbia Interior Softwood Lumber Agreement Arbitration to name a few of the issues.

“So how are we doing?

“I am sure that you are all aware that we are in serious trouble and no doubt some of you have lost some family owned businesses in your communities.

“Prior to the Soft Wood Lumber Agreement 2006 with the United States, our association had 120 members employing over 4000 British Columbians.

“We have now lost 37 companies to bankruptcy or voluntary closure and most of the remaining members are running between 40% and 50% capacity and are presently hanging on by their finger nails.1

1 Russ Cameron, CEO Independent Wood Processors Association of British Columbia September 27

th, 2011 Vancouver, British Columbia




This is not to say that the Forest Industry in British Columbia is dead, just that the expectation that wood processors are in fact ready to expand their operations in the foreseeable future is not a reasonable expectation for any regional diversification plan. There are many other constituent myths that blur the realities of a locally managed resource that are fed by partisan political dogma, however, SCPI continues to rise above the uninformed and manages to fulfill its relevant mandate for its shareholder, the District of Sechelt.

In fact, the previous SCPI Manager Mr. Kevin Davies and the Chair of the Board of Directors did visit with a Vancouver Island based manufacturer and pitched the prospects of opening a second operation in the Hillside precinct of the Regional District in 2009 at exactly the right time. Unfortunately, the conditions changed and that opportunity evaporated. This demonstrates that SCPI is exactly the right organization to be prospecting for new wood and forest related business.

So what does that leave SCPI in terms of demonstrating Value for Money derived from the harvest of local wood? Essentially, the Corporation can influence the reputation of the region for both Wood use and Forest Use. Each has a distinct impact on the long term process of reducing the dependency on residential tax base by growing both the Wood Use and Forest Use sectors of the regional economy.

1.2 PlanObjectiveThe objective of this plan is to review the current state of the Community Forest values, products and services, identify key factors influencing related wood and forest use business opportunities and identify the typical land use and infrastructure required for such businesses. The results of the plan will be used to guide the further development and strengthen the regional economy.

The Overarching Plan Governance statements for both the organization and the forest are: Sechelt Community Projects Inc. exists to optimize the value of locally and regionally owned resources, for taxpayers, residents and constituents of the Sunshine Coast.

The Sunshine Coast Community Forest exists for people who value forests, trees, non‐timber values, woods and the culture associated with resource management.

1.3 AssessmentofOpportunitiesThe analytical phase of the plan was completed in two parts; initially a review and analysis of existing economic, demographic, and regional data and plans to identify important characteristics and trends, including economic development and associated opportunities for wood and forest use business development; and secondly the Consulting Economic Developer completed a series of stakeholder interviews. The findings are summarized in the following paragraphs.

ExistingStrategiesandOperations

Several factors were found to be influencing the ability of SCPI to deliver on its Wood and Forest use mandates. These include:

1. The public expectation that all wood harvested by SCPI is to be purchased by businesses located in the region;

2. The reality that the local Community Forest Corporation, SCPI can and does work with purchasers located in the region to meet their solid wood needs;

3. There are studies, upon studies, of the subject of economic development, value added investment, and foreign direct investment for the Sunshine Coast. Unfortunately, none of these studies are scalable to be of relevance to the rapid and instant changes in the economic condition that enables business retention, expansion or recruitment in diversification opportunities related to wood and forest use;

4. Sechelt Community Projects Inc. does not have the financial or governance capacity to engage their existing volunteers or staff in full‐time economic diversification activity. In addition, the four principal local and aboriginal governments have not decided on how to engage in full‐time economic development.




Therefore, implementation of the plan will be restricted to Board direction and Executive fulfillment of decisions implemented by means of either a direct financial investment in leveraged efforts by third‐parties under Letters of Expectation, or third‐party fulfillment by consultants under the supervision of the General Manager of the Corporation.

StakeholderInterviews

Stakeholder interviews indicated that the following topics were the most frequently mentioned factors in influencing the investment of Economic Diversification fund dollars by SCPI in a targeted manner:

1. A strong desire by the Board of Directors and staff to work with existing local organizations such as the local and aboriginal governments, Chambers of Commerce, Community Futures, and other initiatives that promote the Sunshine Coast;

2. The existence of an economic development task force that would be a good place for SCPI to partner in wood and forest use promotion;

3. Prospects for developing a higher level of wood and forest use awareness through direct partnerships and investments with individual community organizations such as the Sechelt Groves Society and Sunshine Coast Bed and Breakfast, Cottage Owners Association, the Greater Vancouver Real Estate Board Local Brokers, the Sunshine Coast Trails Society, and the Mountain Bike Program at Capilano University Sechelt Campus;

OpportunitiesMostRelevanttotheSunshineCoastCommunityForest

The results of the analytical analysis and stakeholder interviews indicated that the following opportunities represented the most promising Initiatives for the SCPI economic diversification mandate:

1. An independent wood and forest use web portal designed to tell the stories of the people that value wood and forest use to be developed on a contract basis providing access and controls to the individual groups that SCPI partners with;

2. Small matching capital investment in the Sechelt Groves Society, in addition to upgrading the collateral materials and tools required for fundraising for the Groves trails and communication efforts;

3. Small matching capital investment in the Sunshine Coast Trails Society initiative to establish a sustainable operating framework for the development of the outdoor recreation industry opportunities associated with a regional Trail system, including the addition of the influence iof the Board of Directors of SCPI in inviting corporate interests to participate in the completion of the regional trail system;

4. Participation in the business retention and expansion operations specifically focused on the wood industry resident in the region to focus on the “sell local” approach to building the market for Sun Coast Wood products, services and intellectual property, but not as an isolated effort, only as a partner in a bigger regional effort;

5. Participation in the foreign direct investment and recruitment of new business to the Sunshine Coast with a focus on solid wood use and access to public forest lands as a contribution to the regional Manufacturing and Processing capacity and the Hospitality Industry that exists in the region. Again, as a partner and not a sole initiator; and;

6. Participation in a region wide effort with peer group community forest organizations in an effort to create a regional community forest portrait suitable for inclusion in the British Columbia Community Forests “Bridges” initiative.

1.4 DiversificationOptionsThe 2012 Sun Coast Wood Economic Diversification Plan acknowledges that at the present time the community forest corporation does not have the necessary infrastructure (sustaining revenue, staff capacity, or skill sets) in place to implement this plan or any economic diversification strategy outside its forest management mandate. The result of the stakeholder interviews conducted for this study validated the importance of partnership and leadership.




However, constituents and residents of the Sunshine Coasts vast and diverse groups of neighbuorhood’s need to be understand that the mere existence of a community forest tenure does not lead to instant investment in the form of wood manufacturers and processors in the short‐run. The provision of limited dollars generated by the sale of local wood to retention and recruitment efforts alone is insufficient to attract new business to the community because the forest and solid wood sector is still recovering from the full effects of the waves of economic recession. The Sunshine Coast is competing with existing manufacturing‐processing and hospitality infrastructure where existing capacity can be used more intensely, expanded more quickly, or at a cheaper cost than providing new services on the Sunshine Cast.

Two main areas were identified regarding ways to address diversification risks. They involve consideration of the following factors:

1. How much the Community Forest organization can implement on its own;

2. How much the Community Forest Corporation can initiate with the participation of other organizations.

The results of the review of existing operations and consultation with stakeholders clearly indicate that a broader range of partnered initiatives would improve the success of diversification efforts. The uses to consider include ‘wood use manufacturing and processing’ and ‘forest use’ businesses.

1.5 RecommendationsTo address the opportunities profiled in this time and space, this plan makes recommendations in the following areas:

1. Short‐term actions include (a) new communications tools to define wood and forest use awareness created by the Community Forest, (b) the broadcast of stories by residents and newcomers that share the same values, (c) establishing Letters of Understanding with the Sechelt Groves Society and the Sunshine Coast Trails Society; and;

2. Long‐term actions include the negotiation of Memoranda of Understanding with each of the four local and aboriginal governments, economic development task force, community organizations and independent businesses with respect to wood and forest use strategies designed to diversify the regional economy.

Short‐termAction

(a) Newcommunicationstoolstodefinewoodandforestuseawarenesscreatedbythe CommunityForestthroughthecreationofastand‐alonewebsitefortheSunCoastWood andForestInitiative

‐ Complete a branding strategy. Suitable organizations would include the local and regional societies surveyed, Capilano University and an open call to residents and business owners in the region. The maintenance of the web site will be sustained by low cost subscription fees whereby, the users are given full managed access to the resource section, blogs and most wanted sections with current information and contact details for opportunities relevant to the wood and forest use in the region.

‐ Work with the other Community Forests in the Eco Region to build the profile for the BC Community Forest Association Bridges project.

‐ Work with local and regional partners to identify 1 quarterly event to coat tail efforts to inform, educate and train the residents of the coast in the value of wood and community forests.

(b) Thebroadcastofstoriesbyresidentsandnewcomersthatsharethesamevalues

‐ Work with existing community media and interest groups to provide opportunities to enumerate stories related to wood culture and forest use.

‐ Determine who the local champions are for each subject area and determine who the subject matter experts are.

‐ Develop broadcast media including digital video, audio, print for unique distribution using local producers.




‐ Partner with all regional media outlets to determine how best to grow the product.

‐ Train the trainers in understanding the vocabulary and culture of solid wood use and forest uses.

(c) EstablishingLettersofUnderstandingwiththeSecheltGrovesSocietyandtheSunshine CoastTrailsSociety

‐ Develop separate Letters of Understanding that address the values of partnering with both local organizations

‐ Both organizations speak to forest use values. Use this experience to build the wood use value experience.

Long‐termAction

‐ Bring forward the longer term subjects upon the completion of the short term in 2012.




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2.0INTRODUCTION

2.1PurposeoftheProjectThe Sechelt Community Projects Inc. [SCPI] Economic Diversification Committee is undertaking work to establish an economic diversification plan for the Sunshine Coast Community Forest as part of its objectives for community fulfillment. This will examine the factors that drive the community values associated with the forest, the trees, the harvest, non‐timber values and ultimately, the values derived from wood harvested sustainably in the forests. We will also define how values are derived in order to assist the public and private sectors in better understanding the value of Community Forests.

This plan will review the current state of the Community Forest values, products and services identify key factors influencing related business market opportunities and identify the typical land use and infrastructure required for such businesses. The results of the plan will be used to guide the further development and strengthen the regional economy.

The success of this project will depend on the input and participation of the many residents, stakeholders, government representatives and aboriginal government representatives affected by this community and region wide opportunity. Your cooperation in helping us carry out this work will enable us to make this plan a success.

2.2PlanStatementsinclude:

OverarchingPlanGovernance:

Plans have a direct relationship to the Board of Directors and senior staff person that adopt them. In order for people outside the process to understand what a plan is about, they are expressed as statements. In this case, there is a plan statement for the organization and one for the Community Forest:

“Sechelt Community Projects Inc. exists to optimize the value of locally and regionally owned forest and wood resources, for taxpayers, residents and constituents of the Sunshine Coast.”

“The Sunshine Coast Community Forest exists for people who value forests, trees, non‐timber values, woods and the culture associated with resource management.”

PlanVision:

The vision for this plan is to work on a regional level to amplify all community forest efforts for the benefit of all. Suitable plan vision to describe the value of this plan would be:

“In the next thirty six months, The Sunshine Coast will be recognized nationally for redefining how people see and use wood from Community Forests, will have a partnership consisting of 3 of 4 prospective Community Forest Corporations from the same coastal eco‐zone profile and will and hold supplier, producer and buyer events twice annually.”

OurPlanMission:

The Plan only has one mission. However, to understand the Plan mission, the organization and community forest mission’s must be stated so that third‐party’s can see how they link:

“The economic diversification plan exists to optimize the value of trees and wood harvested from Community Forests on the Sunshine Coast, increasing the return on investment, value for money and will benefit tax payers and shareholders by demonstrating the value of community.”

“Sechelt Community Projects Inc. was founded to help people understand the value of Community owned and operated resource management.”

“The core business of this community corporation is to profitably manage public tenures, exceeding Government of British Columbia objectives and standards, and to provide harvested wood products and services to the market.”




SunshineCoastCommunityForestMarketPositionObjectives:

The following are objectives derived from the list of Sunshine Coast Community Forest Objectives that the economic diversification plan will address. They include:

Supportandincreaselocaljobs

This plan approaches job retention, expansion and recruitment in all five industrial sectors. It will also link and demonstrate how these five categories work in tandem at any given time. This Plan does not pick winning sectors, but rather, assists the Corporation and community in moving forward in tandem.

CommunityInvolvement

Community Involvement at this level is interpreted to mean community organizations that choose to partner with SCPI in developing an economic diversification plan.

Promotecommunityparticipation

The economic diversification plan will track and report out on all units of values measured in the Plan from Forest, Timber, Non‐Timber Value to Wood uses.

PromoterecreationwithintheCommunityForest

The Plan will communicate, market and advocate recreational uses in the Forest, as well as connections to a regional system of trails, botanical inventories and recorded animal sightings.

Educatecommunityaboutforestresources

The education program at this level requires connecting public schools to post‐secondary programs and designing a system where residents have opportunities to receive training and education in Forest work force occupations and retain the opportunity to work in the region.

Communicationsprogram

The economic diversification plan communications program will focus on real people through testimonials and story‐telling.

EconomicDevelopment

In this context, tactics from community development, community economic development and pure economic development will be deployed on a number of levels to optimize and energize the economic diversification plan.

Promotevalue‐addedmanufacturing

The day for value added manufacturing in the commodity market based huge planer mills and mega lumber mills has passed. The volume of wood required to support such an investment is more than 500,000 m3, when the local available is pegged currently at 20,000 m3. However, this economic diversification plan will demonstrate wood use on multiple levels, driven by industry and commercial examples.

Supportnon‐timberproductactivities

Taking a page from the Botanical Gardens Society recent success in building community support, the economic diversification plan will engage a variety of organizations, some resident, and others regional, to build a wider community of people that value the non‐timber opportunities offered by Community Forests.

2.3ApproachandMethodologyThe Plan is divided into 5 basic stages which commenced in July 2011:




ResearchStage1

Stage 1 involved the surveying of people to inform the strategy. Surveys of a number of small groups took place before the Plan could be set. The results of these conversations inform the Plan and aid the Committee in being certain about the course of work.

StrategyStage2

Each interview and survey provided a unique insight into what is and what is not possible. Members of the Committee have initiated this process by inviting the owner of one of the companies they do business with to Sechelt from Vancouver to take a look at a number of opportunities and provide his insight to the Committee.

Each of the functions defined in the Glossary of Terms requires evaluation as to the feasibility of application in Sechelt. This is done by process of elimination in discussion with the people interviewed in stage 1. The purpose of this stage is to focus on 3 or 4 key functions that will become targets for the Plan. The list is maintained in its entirety in the Appendix so that as the plan rolls forward and targets are fulfilled, they can be replaced with other functions from the list in an orderly fashion.

BuildingStage3

This stage may be started prior to the completion of the previous stage. Each stage may be concurrent as opposed to sequential. Web Sites, communications plans, engagements strategies and other functional tools get deployed from the day that the Plan hits the Committee table.

Narratives, testimonials and referrals are all a part of stages 1 and 2, but their real usefulness is in Building the look and feel of the Plan. The qualities that make up the Sechelt Brand are derived from the conversations taking place at all levels. By engaging someone from outside the community, the Committee stands a better chance of hearing the unique features of the Forest, the Wood and the people that value both.

ImplementationStage4

For this Plan, implementation will be concurrent and mapped out along with budgets and resource requirements. Some elements may not be implemented for lack of resources. Others will move ahead due to the availability of volunteered and in‐kind contributions.

AssessmentandRepositionStage5

The Plan is designed to be assessed quarterly and metrics will need to be designated so that the Plan is SMARTER:

Letter Major Term Minor Terms

S Specific Significant, Stretching, Simple

M Measurable Meaningful, Motivational, Manageable

A Attainable Appropriate, Achievable, Agreed, Assignable, Actionable, Action‐ oriented, Ambitious, Aligned

R Relevant Realistic, Results/Results‐focused/Results‐oriented, Resourced, Rewarding

T Time‐bound Time‐oriented, Time framed, Timed, Time‐based, Time boxed, Timely, Time‐Specific, Timetabled, Time limited, Track able, Tangible

E Evaluate Ethical, Excitable, Enjoyable, Engaging, Ecological

R Re‐evaluate Rewarded, Reassess, Revisit, Recordable, Rewarding, Reaching

To identify appropriate targets for repositioning of the plan (social, economic, environmental & governance) for this community, the Committee needs to first analyze deficits (or opportunities) by specific category. Those categories that make market sense are then analyzed to make sure they fit into the niche, space utilization (specifically clustering) and marketing (specifically target market). The Network will use the following criteria in finalizing our wish list:

Is there appropriate space in the area for this type of activity? Will it complement existing activities? Will it serve targeted segments of the community? Does it fill an important gap in the social, economic, environmental and governance mix? Will the activity strengthen an existing cluster of community interests? Was this activity category identified as important in local and sub area research? Does demand and supply data support the need for this type of activity?




Does the activity fit it with the market position and vision statements?

A short term assessment will be required prior to setting terms for the Value Management Plan

2.4Assumptions&LimitingFactorsThere are many physical, legal, public and market constraints that govern the Sun Coast Wood Economic Diversification Plan and impact the plan recommendations. As the development of the community forest proceeds, the impact of these constraints should shape and influence the effectiveness of the plan tactics. Changes in development tactics should be expected over the longer term.

Development and land use at the community forest is impacted by federal, provincial and local government legislation, regulations and bylaws, but not limited to:

a. Federal: Canadian Environmental Assessment Act.

b. Provincial: Agricultural Land Commission, Environmental Management Act, Land Title Act, Local Government Act.

c. Local: District of Sechelt Official Community Plan and the Sunshine Coast Regional District Official Community Plan.

This report does not contain a financial analysis describing the impact of the plan on the cost of Community Forest operations, or customer service levels. Rather, the intent of the plan is directional in nature. It puts forward specific measures that could be taken should policy makers decide to pursue various tactics for increasing diversification activity and further Wood and Forest use development. An assessment of the benefits of implementing any of the plan measures will need to be balanced with the willingness and ability of Wood and Forest beneficiaries to share in costs that may be associated with development, or improvements. It is also important to note that financial resources available to apply to the plan will change over time. Thus, the Sechelt Community Projects Inc. Board of Directors will need to be mindful of such changes before initiating any plan efforts.

The report needs to be considered in its entirety; information in individual sections should be considered in the context of the scope of work and the purpose of this plan. The information contained in the various sections may or may not be suitable for reproduction as a stand‐alone document. If, for any reason, should major changes occur, the findings and recommendations contained in the plan team’s analysis should be reviewed.




3.0PROJECTCONTEXT

3.1RegionalEconomicSummaryWhen this work was commissioned in January of 2011, there was an expectation that the result would take the form of an economic development plan or strategy. Through extensive consultation it was decided by the Economic Development Committee that a focus plan be prepared that incorporates interests in wood and forest values.

A review of documents predating this work revealed a number of interests in pursing the diversification of the wood and forest uses in the region.

“Diversification Diversification has become a critical objective as the traditional resource base of the economy changes. Residents of the Sunshine Coast desire an economy that is stable, sustainable, competitive and provides opportunities for all. Importantly, diversification can occur within as well as across sectors. Opportunities are available in growing sectors such as tourism and high‐tech, but diversification can also occur in traditional sectors like forestry. “Sustainable Development The Sunshine Coast recognizes the value of the natural environment as an asset in the continued sustainable development of the community. Sustainable development will attach limits to production and consumption so that the choices of the next generation are not impaired. If we overharvest or over‐pollute, we are eroding the foundation of our future economic opportunities. Sustainable development can also include community heritage, local arts and cultural resources, indigenous crafts and skills, and folklore, all of which contribute to the quality of life gained from social and cultural diversity.” 2

For the purposes of this plan, the following graphic will represent the definition of sustainability:

2 Community Economic Development Strategic Plan Lower Sunshine Coast, Lions Gate Consulting Inc., Vancouver, British Columbia, CANADA September 2002 pp. 10




Figure 1 Triple Bottom Line Approach to Sustainability

3

Unfortunately, this graphic excludes the fourth pillar known as “Governance”. This is a key element in the fundamental advantage of a local Community Forest Corporation: Local Control of Resources. The opportunity to influence decision making on growth, harvest and the investment of proceeds locally is one of the key advantages to Community Forests to any local or regional community. Understanding the scope of sustainability in this context is also important.

In 2008, the Government of New Zealand revisited some of its definitions and produced the following graph.

3 http://www.gcbl.org/economy




Figure 2 New Zealand Relationship between target dimensions and key indicators

4

The details identified in the 2002 Regional Strategy included:

Supporting a proposed Wood Innovation Centre

Investigate opportunities associated with International Forests operations; and;

Develop a value added land use zone and provide supportive infrastructure.

By 2011, the outlook for value added manufacturing and development has declined to the state described by Russ Cameron, Executive Director of the Independent Wood Processors Association of British Columbia address to the Mayors at UBCM 2011. This means that short term expectations for investment in wood manufacturing and business infrastructure on the Sunshine Coast should be positioned as a long term goal.

Defining the regional economic scan for this region was facilitated by recent presentations.

There was a transfer of responsibility from the Government of Canada to the Government of British Columbia in 2009 which resulted in a gap in workforce and human resource development information for many areas in British Columbia. Fortunately, local organizations such as the Sunshine Coast Credit Union and the Sunshine Coast Community Foundation steeped up to ensure that business case information is available in the interim.

Vital Signs is a review of socio‐economic factors released October 4th 2011 by the Sunshine Coast Community Foundation. It reports on the key areas defined by the Community Foundation for its key areas of interest. It is part of a National Strategy which is highly collaborative inside the community. It is important to note that the report makes no assertions as to the negative or positive nature of the information. It is not a critical review of core information required to make business decisions regarding investment in the region.

Highlights from this report pertinent to this plan include5:

4 http://www.stats.govt.nz/browse_for_stats/environment/sustainable_development/key‐findings/further‐discussion‐on‐sustainable‐development.aspx




“Most pervasive theme is the aging of the population impacts life on the coast;

Demographics impact on the choices available to deal with challenges in the region;

Steady growth in population not by birth, but by immigration of 55‐65 increasing 20% in ten years;

Trend is greater on the Sunshine Coast than in the lower mainland and in Canada;

Decline in the number of students in the school system;

Capilano University is the destination of choice for local graduates;

Higher rate of alcohol and drug use in school students than the provincial average;

Challenges for young adults in their twenties and out migration of young adults;

VOICE survey indicates lack of entertainment and education facilities causes of migration;

Living wage the same as metro Vancouver and slightly higher than metro Victoria;

Affordable and special needs housing is a concern.”6

One of the many local initiatives facilitated by the Community Foundation was the establishment of a Task Group focused on the plight of young adults on the Coast, one of those challenges identified in the Vital Signs Report 2011.

“On May 14, 2010, the Foundation organized a workshop with over 50 participants representing all segments of our community. The workshop expressed significant support for moving forward with a community plan and partnership model to address the problem. A task force was identified and appointed to work on the plan and partnerships, and to deliver this community plan as a result.”7

The Task Group is working on several actions which may coincide with some of the actions identified in the Sun Coast Wood plan. The VOICE actions include8:

1. Develop a young adult branding strategy to be broadly accepted and integrated within an overall Coast‐wide brand, including:

High community potential and interest for post‐secondary expansion*;

Sustainability/outdoor lifestyle*;

Alternative educational options for children, including early years;

Home‐based/ Information Technology/ telecommunications innovation;

Labour market development for employment opportunities*;

Inclusion/welcome of young adults and families in local strategic plans*;

Entertainment and activities for young adults/”nightlife.”

2. Establish a user‐generated Sunshine Coast social media website to engage residents, attract non‐residents, and to act as an interactive and influential branding platform*.

3. Develop VOICE (focus group of young people for this initiative) into an Advisory Council for sustained leadership, and “leadership pool” for further community input and engagement.

4. Listen and learn about the strengths and opportunities of young adults living on the Coast*. 5. Promote and encourage a vibrant nightlife for the younger generation. 6. Promote and expand succession planning that is occurring on the coast*. 7. Endorse a regional (Coast‐wide) economic development function. 8. Support employment clusters “of excellence” such as Intelligence Services*. 9. Form an integrated‐community Apprenticeships program*. * Subjects of intersection

5 http://sccfoundation.com/vitalsigns/ 6 Katherine Esson remarks at Sunshine Coast Credit Union breifing 7 http://www.voiceonthecoast.com/#b0f/custom_plain 8 http://dl.dropbox.com/u/2399326/Community%20Plan%20July%2015%202011.pdf




Central 1 Credit Union was engaged by the Sunshine Coast Credit Union to prepare a report on “The Future Business Environment of the Sunshine Coast: A 10‐Year Forecast.” Mr. Helmut Pasterick, Chief Economist for this organization that leads Credit Unions in both British Columbia and Ontario, reported his findings on October 21st, 2011 to an audience hosted and sponsored by the Sunshine Coast Credit Union9. The Credit Union identifies the role of educating the public about factors influencing their local and regional economy as being a key responsibility of the organization.

Key messages from this presentation included:

“Economic summary:

Economy less dependent on natural resources, more service industry‐oriented economic base Businesses are smaller sized, reflecting a smaller market Long‐term decline in primary industry jobs; mainly forestry, fishing; Port Mellon mill largest employer A significant number of workers commute or have no fixed workplace address Some concentration in primary resources, mining, construction Services industry concentration limited to retail trade and arts, entertainment, and recreation Economy largely dependent on external factors for growth with some lift from local growth

conditions Construction and real estate at cyclical high in 2006; accounts for much of measured regional

shift or local growth advantage Large local growth advantage in retail trade Local growth conditions positive for IC (information and cultural), ASW (administrative / support

/ waste management), and PST (professional/technical/scientific) industries Accommodation‐food services a growth laggard – measurement issues or underlying

shortcomings? Relatively high dependence on non‐employment income (pensions, dividends/interest, annuities,

etc.) and transfer payments (CPP, OAS, GIS, EI, etc.) Higher growth phases associated with higher in‐migration, expansion in real estate activity, and

more construction to meet higher residential and non‐residential space demands Local economy currently in low‐growth phase”

This economic dependency slide from Mr. Pasterick’s presentation illustrates one of the single most important messages to residents who may or may not be owners of small businesses on the coast, or, for the most part, are, or have been employees and may not understand how the local economy works. It shows that the Forest economy is as important to the sustainability of the region as Financial Transfers from Governments to constituents in the form of EI and other social supports, and those transfer related to retirement, pensions and other incomes.

This is not a positive indication for the future in that Government Transfers and Pension transfers do no generate dollars for the region, they consume dollars. The only sector generating incom3 by means of exports is the Forest Sector. Do not confuse this with the concerns over the export of raw logs. The ability of residents to generate income for the future is restricted to a declining number of individuals carrying the burden of supporting the rest of the citizens. This is not sustainable in the near future.

9 https://www.sunshineccu.com/Personal/AboutUs/WhatsNew/News/FutureBusinessEnvironment/




Figure 3 Economic Dependency Changes from 1991 to 2006 – Sunshine Coast

10

It was also significant that Tourism or the Food Service and Hospitality segment of the retail economy does not support the region economically. This is not to say that this segment cannot be grown over time, however, significant infrastructure investments will be required to establish this segment as a supporter of the region.

“Residential summary:

Housing sales and construction activity highly cyclical Large non‐local ownership of residential properties;

Generates large seasonal increase in population Majority of non‐local owners from lower mainland Non‐local ownership highest (80%) in SCRD Within incorporated areas, non‐local ownership highest in District of Sechelt Current housing market conditions ‐ sales sliding lower, large number of listings on the market,

price weakness, low construction volume”

It was startling to hear that fifty percent of the ownership of single family homes is by absentee owners. The percent is higher in rural electoral areas of the regional district. This typically results in a biased perception of a vision for the community that conflicts with what the resident owners desire. This may account for some of the rural urban differences in expectations for industrial versus no industrial maintenance or growth that have been experiences in the region, such as the perceived anti‐forest harvest and anti‐fish framing lobby from a few of the rural residents.

10 The Future Business Environment of the Sunshine Coast, Central 1 Credit Union in association with the Sunshine Coast Credit Union

October 21st, 2011 power point presentation H. Pasterick




“Forecast Summary to 2021:

Higher growth largely depends on stronger economy and housing markets in Metro Vancouver and B.C. leading to more in‐migration and non‐local ownership activity

U.S. economy in sub‐par growth phase for another two or more years; intensifying sovereign debt problems in Europe; External growth outlook improves in medium and longer term but business cycle timing

uncertain; Economy improves in second half of ten‐year forecast; Local economy faces weak to modest growth in 2011 and 2012; improves later in forecast period; Higher in‐migration and population growth drives real estate, construction, and retail

employment.”

Mr. Pasterick recommends a number of economic development initiatives for the region:

1. Grow your Exports; 2. Encourage import substitution; and; 3. Promote and market the region.

Figure 4 District of Sechelt Strategic Plan 2012 ‐ 2014

The local government strategy is supported by this diversification plan as it works for the Vision, Mission and the following Very Short Term Goals:

7. Contributes to the development of a business development process; and 11. Encourages the increased use of all venues such as the Hidden Grove and Trails.

High Impact – Short Term Goals:




1. Fostering Partnerships; 4. Supports outdoor recreational amenities | venues; 6. Promotes the Vision for Sechelt; and; 7. Fosters productive, accountable, effective and efficient local government.

3.2WoodProductsandServices

The recent report authored by Central 1 Credit Union acknowledged that there is sufficient business to support a solid wood segment of the Forest industry in the region.

“According to the Ministry of Forest and Range, seven mills operated in the SCRD in 2010 producing pulp and paper, wood chips, and log homes. Since the 2002 permanent closure of the Bayside Sawmills Ltd. in Port Mellon, the number of mills operating in the SCRD has remained constant.”11

In a report commission by Sechelt Community Partners Inc. in 2008, a researcher concluded that the wood industry was comprised of a significant number of businesses which would attract the definition of a wood cluster.

“The numbers of wood‐related business on the Sunshine Coast are estimated at 38 value‐recovery businesses (including giftware, furniture, cabinetry, recyclers and others); 27 contractors (includes new home builders and renovators); 5 lumber wholesale/retailers; and 12 architectural and engineering firms. All are currently extremely busy. Many contractors have building commitments that extend for from one to several years.”12

The report further concluded that the 100 mile market is in effect in this region. Like the 100 mile diet, the market analogy describes the relationship between harvesters and manufacturers located in the region.

“Most purchase their wood supply dry and often milled. They also purchase locally whenever possible. With the production from the SCCF and from the log sorts located in Howe Sound, we have available the raw logs necessary to meet all of their softwood and local hardwood needs. However, we currently do not have production scaled sawmills, kilns and milling machinery to produce the materials they require.”13

The report fell short of realistic fulfillment of prospects. It was a platform to make the case for the Sechelt Community Projects Inc. to spend more money on more consulting with no guarantee of a result. The report speculated at manufacturing opportunities related to proximity to the resource.

“Short and long term phases for the development and enhancement of our value‐recovery wood businesses are presented. Businesses must consider larger markets than here. Quality, pricing and delivery must be competitive with off‐coast businesses. A feasibility assessment for this phase, accompanied by the development of a business case is recommended.

The following should comprise the 2‐year short term phase

Supplying logs, Particularly cedar and fir, to sawyers;

establishing commercial scale dry kilns;

a truss plant;

a planer mill with related capabilities


Vancouver, British Columbia, CANADA, October 21st, 2011 page 15 12 Pre‐feasibility Study for Value Recovery Business Opportunities on the Sunshine Coast, D.J. Gillis, Roberts Creek, British Columbia, CANADA, March 2008 pp. 27 13 Pre‐feasibility Study for Value Recovery Business Opportunities on the Sunshine Coast, D.J. Gillis, Roberts Creek, British Columbia,

CANADA, March 2008 pp. 27




and the stocking of locally produced lumber.” 14

The D.J. Gillis report went further to acknowledge that the Sechelt Community {Project Inc. organization does not have the capacity, the financial means or the full time employment to be the prospector for new business in the region. The author may have meant that a consortium of organizations such as the Home and Away Teams proposed in this plan be used to prospect for investors and operators.

“A consortium approach is recommended for the longer term from year 2 to year 7. A dedicated feasibility study should be undertaken at the end of year 2. Co‐location of several related businesses on a 10 to 15 acre lot in or near Sechelt is recommended. Each business will be separately owned and will be responsible for their finances, management and profit. This structure will function to decrease production costs through transportation savings and other synergistic effects.” 15

All of these expectations and goals require full‐time staff, annual financial investment in business retention|expansion and recruitment operations that have yet to be established in the region.

3.3ForestProductsandServices

Clearly, managed forestry will be a contributor to the regional economy of the Sunshine Coast for at least another 250 years based on the supply estimates from the Government of British Columbia.

“The results of Forest Ministry timber supply analysis concluded the current Annual Allowable Cut (AAC) of 1,140,000 cubic metres per year can be maintained for 250 years. As well, the analysis shows that a harvest level of 1,233,000 cubic metres per year (8% higher than the current AAC) can also be maintained for 250 years (maximum even‐flow). With either approach, a harvest level of 95,000 cubic metres per year can be maintained for 40 years in forests dominated by alder.” 16

The community benefits associated with the primary harvest result in high incomes for a few people that live in the region. The primary harvest and resource extraction jobs are the most sought after in any region. It is important to note that in spite of single interest groups misinformation and poorly informed media that use terms like “Sunset Industry”, Forest sector work is still fundamental to the region.

What is needed in the context of a community forest is a new definition that focuses on “Non‐Timber” values. For the purposes of this plan, the definition offered by the Food and Agriculture Organization of the United Nations 1995 will be used as follows:

"Non‐wood forest products include all goods of biological origin, as well as services, derived from forest or any land under similar use, and exclude wood in all its forms" 17

Economic activities by definition associated with this definition include the following codes:

Table 1 International Standard Industrial Classification of All Economic Activities (ISIC)

ISICCode ActivityDescription0111 Growing of cereals and other crops n.e.c.;0112 Growing of vegetables, horticultural specialities and nursery products;0113 Growing of fruits, nuts, beverage and spice crops;0122 Other animal farming; production of animal products, n.e.c.;0150 Hunting, trapping and game propagation, including related service activities; 0200 Forestry, logging and related service activities;1511 Production, processing and preserving of meat and meat products;1513 Processing and preserving of fruits and vegetables;1514 Manufacture of vegetables and animal oils and fats;1549 Manufacture of other food products, n.e.c.;

14 Pre‐feasibility Study for Value Recovery Business Opportunities on the Sunshine Coast, D.J. Gillis, Roberts Creek, British Columbia,

CANADA, March 2008 pp.1‐2 15 Pre‐feasibility Study for Value Recovery Business Opportunities on the Sunshine Coast, D.J. Gillis, Roberts Creek, British Columbia,

CANADA, March 2008 pp.1‐2 16 The Future Business Environment of the Sunshine Coast, Central 1 Credit Union in association with the Sunshine Coast Credit Union

October 21st, 2011 page 15

17 http://www.fao.org/docrep/v7540e/V7540e28.htm




ISICCode ActivityDescription1820 Dressing and dying of fur; manufacture of articles of fur;1911 Tanning and dressing of leather;All classes under division 20 Manufacture of wood and of products of wood and cork; manufacture of articles of straw and plaiting

materials; All classes under division 21 Manufacture of paper and paper products;2423 Manufacture of pharmaceuticals, medicinal chemicals and botanical products; 2429 Manufacture of other chemical products, n.e.c.;2519 Manufacture of other rubber products;3699 Other manufacturing, n.e.c.;9249 Other recreational activities;9309 Other service activities, n.e.c.

Source: http://www.fao.org/docrep/v7540e/V7540e28.htm

This does not mean that the growing of cereals is being recommended as a non‐timber value, but rather, the starting point for discussing other “Forest” values that can be developed.

Other Forest uses include First Nation experience which was not assessed for this report and should be brought forward in the near term when the SIB Shíshálh First Nation is ready to participate.

Another Forest value is the facilitation of direct and in—direct uses of the Forest associated with Tourism, or Food Service and Hospitality. The Central 1 Credit Union report illuminated this sector as follows:

“Tourism is not a specific industry classification but rather a combination of several industries such as accommodation, food, transportation, retail, arts, culture, and recreation. The Local Area Economic Dependency study identified tourism generating about 3% of the income in the Sunshine Coast, down from 4 to 5% in previous Censuses. An estimated 600 to 800 persons were employed in tourism in the SCRD using place of work data. Other than retail trade, the main industries in tourism did not record local growth between 2001 and 2006 with accommodation and food coming in the most negative. The majority of workers in retail serve the domestic market.” 18

Another use of the Forest is for education and training. The evaluation of outdoor education, applied science and learning uses needs to be completed. This means more than the occasional field trip by elementary students. Other regions are pursing resource management academies within the context of the public school system tied to both regional post‐secondary and non‐resident post‐secondary partners.

Heritage and recreation Forest uses have also been identified for the region. While these uses may not produce the income levels associated with growing, harvesting, processing and manufacturing solid wood, they play an integral role in the livability of the region.

3.4ComparisonofSunshineCoasttootherCommunityForests

3.4.1ProfileofSunshineCoastCommunityForest

The Sechelt Community Projects Inc. organization was established in 2005 to facilitate the acquisition and development of the Sunshine Coast Community Forest. The business model used was developed during a period in British Columbia when arm’s length community owned and operated corporations were being established to manage local infrastructure and resources. While there may have been some expectation by the founders that this business model could manage multiple assets, the reality is that the revenue and risk management profile provides for the management of a local harvest and no other core activities.

Who are we? “The Sunshine Coast Community Forest (SCCF) is operated by Sechelt Community Projects Inc. (SCPI) with the District of Sechelt being the sole shareholder of the Corporation. SCPI holds and manages the license as a BC company, incorporated on March 8, 2005. The volunteer Board of Directors is made up of Sunshine Coast residents and come from a wide range of interests and skills required to


October 21st, 2011 page 15




guide the Corporation. The SCCF is a member of the British Columbia Community Forest Association. “The Beginning Several attempts, including Community Futures and the SCRD, were made to apply for a Community Forest under a Pilot Project process. In 2003, The District of Sechelt reviewed the reasons why these other initiatives failed and embarked on a different approach to the problem. This action was instrumental in initiating the new Direct Award Probationary process that has resulted in invitations to 28 other communities. This effort was rewarded in not only successfully getting an application approved under the new process, but they were one of the first in the Province to have their application approved and granted a Community Forest Tenure license. “What is a Community Forest? It is an area based tenure issued by the Ministry of Forests under the Forest Act to a community or Society. The SCCF is a 25 year permanent tenure. A Community Forest is an opportunity to manage a specified forest area, called "area based", and sustainably harvest the timber in a way that benefits the community. A Community Forest is managed based on community values. The challenge in managing a community forest is balancing all values and stakeholders needs in the community. This includes recreation, the environment, business, education and providing employment.” 19

On May 31st of 2011, The Board of Directors of the Sunshine Coast Community Forest and the District of Sechelt were pleased to announce that the Ministry of Forests, Lands and Natural Resource Operations approved a 25 year renewable Community Forest Agreement (CFA) tenure. The Tenure was effective immediately and replaces the 5 year Probationary Community Forest Agreement (PCFA) tenure granted to the District of Sechelt in 2006.

“The District of Sechelt saw the need for and benefits of having a community forest; an economic endeavor that is now proving its economic as well as its recreational value to the community. “We would like to thank all those who have contributed greatly to the creation and success of this operation: Mayor Inkster and council, past mayors and councils of Sechelt; past chairs Mr. Len Pakulak and Mr. John Henderson; and past Operations Manager Mr. Kevin Davie,” said Glen Bonderud, Chairperson of the Board of Sechelt Community Projects Incorporated (SCPI), the company that operates the Sunshine Coast CFA on behalf of the District of Sechelt. “As we look to the future, we will be working with the community to build relationships and a better understanding of all positions and opinions related to the management of the Community Forest. “Our aim is to foster a better understanding of the economic, social, environmental and recreational benefits created, and the jobs our Community Forest can create and sustain on the Sunshine Coast,” said Glen Bonderud, Chairman of the Board of Directors.” 20

The April 2011 Annual Report for the Corporation included the following highlights pertaining to economic development:

“Economic development initiatives are a key part of the SCCF strategy.

We consider helping to encourage the creation of new economic ventures to be the best legacy the SCCF can provide to the community.

In 2010, the SCCF created the Economic Opportunities Fund, with an initial allocation of $200,000, to help foster economic development opportunities on the Coast. The Board has

19 http://www.sccf.ca/AboutUs.aspx

20 SCPI Press Release May 31

st 2011, Sechelt, British Columbia, CANADA, pp.1




determined that the focus of such efforts will be in forest‐related industries – meaning anything that involves or relates to the forest. Obvious examples include wood‐based value added initiatives.

However, we also consider tourism, sports and recreational initiatives related to the forest to be within our sphere of interest.

Late in 2010, we engaged an independent economic development advisor to conduct a comprehensive assessment of the numerous options and strategies available to us. We anticipate receiving and dealing with his recommendations about the best ways for us to move forward by mid‐2011. It is our hope that, with these recommendations in hand, we will be better able to assist entrepreneurs and business interests both from off‐Coast as well as those already here to invest in their community, thereby creating more jobs and helping keep wood fibre here on the Coast.

The SCCF also participated in the BCCFA’s province wide Value Added Bridges Project which is both a study and initiative to assist local wood sales by encouraging loggers and wood users to create business relationships to further the use of more wood in the community. The main outcome of the study will be an interactive website where log and lumber sales may be made between small tenure holders and value added users of wood.

We are cognizance of other initiatives on the Sunshine Coast which have a broader, more general economic development focus. We have worked with many of these groups in 2010 and look forward to continued cooperation in 2011.” 21

3.4.2OtherCommunityForestOrganizations

The following organizations and operations exist on the Sunshine Coast and Area:

Cheakamus Community Forest (Whistler, Resort Municipality of, Squamish Nation and Lilwat Nation) 20,000 AAC 30,284 Hectares Issued 4/9/2009 ............................. http://www.cheakamuscommunityforest.com/

Klahoose Forestry Limited Partnership First Nation Community Forest – Powell River 102,293 AAC 160,212 Hectares Issued 10/6/2009 ................................................................................................... .......................................................... http://www.klahoose.com/go29a/Klahoose_converts_Tree_Farm_License

Powell River Community Forest Ltd. 25,000 AAC 7,109 Hectares Issued 7/7/2011 ................................................. http://www.prcommunityforest.ca/

TLA’AMIN Timber Products Ltd. – Sliammin First Nation Powell River 28,000 AAC 9,340 Hectares Issued 12/4/2007 Preliminary Status .......................................................................... ............................................................................................. http://www.sliammondevcorp.com/SDC/Home.html

Tsain‐Ko Forestry Development Corporation – Sechelt First Nation Non Replaceable Forest License for 32,025 m3 ................................................................................. http://www.secheltnation.ca/

Sechelt Community Projects Inc. – Sunshine Coast Community Forest 20,000 AAC 10,790 Hectares Issued 5/31/2011 ...................................................................... http://www.sccf.ca/

3.4.3TheProvincialAssociation

The British Columbia Community Forest Association Conference and Annual General Meeting 2010 Report cites a number of areas that Community Forests are considering as part of their core mandate:

Bridges Part 1 – Community Forest Products: Development of Value‐Added Fibre Supply Strategies

Bridges Part 2 – Community Forest Management: Development of Planning Tools

Bridges Part 3 – Community Forest Governance: Development of Educational Resources

First Nations Dialogue

21 Sechelt Community Projects Inc. Annual Report to the Shareholders, May 2011, Sechelt, British Columbia, Canada, pp.2




Community Forests and BC Carbon Sequestration Policy

Community Forests and Carbon Credit Policy

Biomass Energy

Feedstock Supply Logistics: Challenges for Biofuels

Community Forest Marketing and Branding

Challenges facing Newcomer Communities

“In 2009, members of the BC Community Forest Association (BCCFA) identified the need for small tenure owners such as community forests and woodlots to connect log sales with local saw millers. BCCFA recognized that getting the right log, to the right place at the right time would benefit wood workers and the economy of our communities.

“The BCCFA is excited about the potential of this project and how it will help our forest workers and local economies recover and grow.” says Robin Hood, President of the Association.

Quick and easy access to market information, whether it is what a seller has to offer or what a buyer is looking for, will facilitate the flow of fibre into the marketplace. We hope to see raw fibre reach a mill or manufacturer where it will be used for its highest value, creating the highest number of jobs for the highest profit.

A buyer/seller website will help bring businesses together creating relationships that will stimulate new opportunities to develop durable and sustainable economic activities. With better exchange of information they can get the right log, to the right place, at the right time.” 22

Separating a Community Forest diversification plan into wood and forest values is not evident in Members plans. Doing so will create a new level of responsibility and accountability for the Sechelt Community Projects Inc. that sets it above other organizations.

3.5ProvincialEconomicDevelopmentContext

On Thursday, September 22, 2011, British Columbia Premier Christy Clark launched the regions latest Economic Development Strategy entitled “Canada Starts Here .” Features of the plan that may influence and support the Sun Coast Wood economic diversification plan include Goals:

“6. Enhance business access and productivity:

Work with communities and business to create Investment Attraction Strategies for each region of the province.

Work with communities to build their capacity to respond to and act on investment inquiries.

“10. Create partnerships to ensure training spaces are matched with regional employment needs. This will include:

Create Regional Workforce Tables as a new platform for educators, industry, employers, local chambers of commerce, First Nations, labour and others to come together to plan how best to align training programs to meet regional needs. Their input will inform how the Province delivers regionally based skills development programs, including $15 million to further support regional post‐secondary institutions in addressing local labour needs.

Providing up to $6 million a year to industry sector partnerships to help them identify their skill and workforce needs, with additional funding for upgrading skills so workers can benefit from these opportunities.

Hosting a trades training conference by the end of 2011, bringing all partners together to identify ways to enhance the province’s trades training programs.” 23

22 British Columbia Community Forest Association Press Release September 2011, Kaslo, British Columbia CANADA

23 Canada Starts Here, The BC Jobs Plan, Vancouver, British Columbia, CANADA September 2011, pp.15‐16




There are no financial resources, programs or grants available to assist in any of these initiatives.

3.6RegionalEconomicDevelopmentContext

The subject of Regional Economic Development is under consideration by a Task Force of administrators representing local and aboriginal government. The Administrators Report dated July 20th 2011 made two recommendations:

“Step one: function before form – create a memorandum of understanding between the local governments in the region for the “sunshine coast economic development alliance; Step two: executive committee nominates the board of directors; Step three: hire an economic development officer; Step four: the executive committee develops a request for proposal (rfp) for the co‐location of the office; Step five: develop the larger strategy through input from a community advisory board/roundtable; Step six: get to work and measure your progress; and; Step seven: build your ambassador program.” 24

Experience indicates that appointing local and aboriginal elected representatives to any economic development may result in competition for primacy and financial resources. Decisions may be challenged due to the appearance of cronyism and conflict of interest. Also, uninformed observers will accuse the operation of duplication of other organizations work in the community.

Forming Boards and Executive based on sectoral representations encourages similar results. Successful Boards of Directors adopt hands off Policy Governance approach that makes the Executive Manager responsible for plans, outcomes and results. In addition, the recruitment of volunteers based on personal and professional experience and skill sets inoculates Boards from the conditions stated in the previous paragraph.

In the case of this diversification plan, a comparable strategy was deployed as follows:

Step one: Consult the local and regional business community to determine business retention and expansion needs;

Step two: Conduct focus groups and interviews of key people to test the results of the survey of needs;

Step three: Consult with local government senior staff to determine barriers to progress and past history;

Step four: Provide an informed assessment of the current economic scan against needs and expectations;

Step five: Test draft actions with Executive Management Group of the Sechelt Community Projects Inc.;

Step Six: Circulate draft to prospective partners for input. Present to the Board of Directors, then to the Shareholders Representatives post 2011 election, then host a public information session designed to educate the tax payers on decisions leading to the plan.

Step seven: Assign financial resources to the plan and secure the best possible people to implement the plan ion behalf of the Corporation and ensure that Regional actions feed into the “regional economic development organization”, and local initiatives are fulfilled by the Corporations community of interest.

There are no financial resources, programs or grants available to assist in any of these initiatives.

24 Sunshine Coast Regional Economic Development “CAO” Report – July 2011




3.7LocalSustainabilityPlan

At its Committee of the Whole meeting held on October 12th, 2011, the District of Sechelt recommended the adoption of a draft Sustainability Action Plan 2011. The following section may influence some of the implementation of this diversification plan. It is also important to note that economic diversification was not identified as a priority within the context of sustainable development.

The maintenance of local control over local resources figures prominently in the sustainability movement. The ownership of a community forest is held in high regard as a contributor to self‐determinism and long term viability of communities.

The premise for the diversification plan is based on the fundamentals of building a “Smarter” Community Forest:

Letter Major Term Minor Terms

S Specific Significant, Stretching, Simple

M Measurable Meaningful, Motivational, Manageable

A Attainable Appropriate, Achievable, Agreed, Assignable, Actionable, Action‐ oriented, Ambitious, Aligned

R Relevant Realistic, Results/Results‐focused/Results‐oriented, Resourced, Rewarding

T Time‐bound Time‐oriented, Time framed, Timed, Time‐based, Time boxed, Timely, Time‐Specific, Timetabled, Time limited, Track able, Tangible

E Evaluate Ethical, Excitable, Enjoyable, Engaging, Ecological

R Re‐evaluate Rewarded, Reassess, Revisit, Recordable, Rewarding, Reaching

The second set of targets proposed for the Sustainability Plan include those shown in table

Table 2 Sechelt Draft Sustainability Plan Section 2 Thriving Economy

Indicator Baseline* Where are we now?

Target Our Desired Future

Are wemeeting our

goal

Jobs Ratio of jobs to population 3940:8455[47%]

Increase % of jobs relative top population growth

Percent of population employed locally

47%[2006 census]

50% by 2012

Incomes % of income from employment 47%[2006 census]

Move closer to provincial average 64%

Average income [reflecting pay rates] $37,842[2008]

Move closer to provincial average 64%

Businesses Urban Renewal of Downtown [Wharf & Cowrie Street Priorities]

1 new site application Wharf Rd. 2011

Increase in transition from single storey to multi storey mixed use buildings by 2015

Ratio of commercial industrial assessment to residential

7:93 Percent[2008]

Increase commercial industrial assessment to 20% by 2020

Total number of business license 931[2011]

Increase with rate of population increase

Commercial Industrial Land Base 212 hadesignated in OCP

Increase area of land in active commercial & industrial use

Land Use Percent of total housing units located downtown

To be determined 20% increase by 2020

Percent of new building permits located in Priority Growth Area

To be determined

Percent of new development as compact or higher density units [clustered, multifamily]

11% of totalhousing stock

[2006]

15% by 201225% by 2020

Area ha actively farmed No data for Sechelt Increase

Note: some of the boxes are blank as further review or data collection is required to establish baseline conditions.

Some of these targets could include those identified by the Sechelt Community Projects Inc. embedded in this plan and should be considered by the SCPI Board of Directors.




4.0ASSESSMENTOFDIVERSIFICATIONOPPORTUNITIES

The fulfillment of the Sechelt Community Projects Inc. commitment to making a positive impact on the communities in which is operates in economic developments terms can be described in terms of the retention and expansion of existing business and the recruitment of new business to the region. Diversification comes from the pursuit of new transactions in areas that have not previously been pursued.

4.1RetentionandExpansionIt may appear that focusing on existing business is counterintuitive to the goal of diversification. However, in moral terms organizations have an obligation to work with existing business first, before recruiting new business to accomplish diversification. The Government of Ontario defines this part of the plan as follows:

“BR+E is “An ongoing cooperative effort between business, local government, agencies, other organizations and people in the community with the purpose of identifying opportunities and actions to assist local businesses in expansion, the retention and creation of jobs and the diversification of the local economic base, as well as the implementation of defined actions to improve the local business climate.”

“Short‐Term Objectives

Build relationships with existing businesses

Demonstrate and provide community support for local business

Address urgent business concerns and issues

Improve communication between the community and local businesses

Retention of businesses and jobs where there is a risk of closure

“Long‐Term Objectives

Increase the competitiveness of local businesses

Job creation and new business development

Establish and implement strategic actions for local economic development

Strong viable local economy.” 25

In order to address the concerns of existing businesses, Capital EDC conducted a survey of participants in current and past efforts of the Community Forest Corporation which will be illustrated in following sections.

It is also important to define the baseline of what businesses the Corporation should engage with. A list of existing businesses that have been contacted by SCPI is illustrated in Appendix I ‐ Stakeholder Survey and Interviews.

4.2RecruitmentEconomic developers have different definitions for a variety of functions within this category. Foreign direct investment is one arena and business attraction and recruitment is another. The degree to which an organization gets involved in any of these functions depends on the resources at hand and the circumstance or position of the local and regional economy.

“Foreign direct investment, in its classic definition, is defined as a company from one country making a physical investment into building a factory in another country. The direct investment in buildings, machinery and equipment is in contrast with making a portfolio investment, which is considered an indirect investment.” 26

The following definition comes from the International Economic Development Council:

25 http://www.reddi.gov.on.ca/bre_what.htm

26 http://www.going‐global.com/articles/understanding_foreign_direct_investment.htm




“Business Recruitment and Attraction

“Business attraction and recruitment was once considered the main approach to economic development. Because of the high costs of economic development marketing, attraction is often the most expensive approach to economic development. The attraction of new businesses into an economy may quickly increase the tax base, jobs and the diversity of the local economy. Business attraction is the most publicized and visible economic development tool because it creates many jobs at one time and because of the use of incentives and marketing.

“Targets of attraction efforts include advanced manufacturers, high technology firms, retail and service sector employers, corporate headquarters, sports teams and entertainment venues.

“Business attraction programs use marketing to promote an area’s, favorable business climate, and other location factors important to specific businesses.

“Trends in Business Recruitment and Attraction

“Site selection is the process by which businesses seeking to invest a large amount of resources seek out a new location for their facilities

“A 1999 survey of corporate executives with site selection responsibilities cites that the Internet’s importance as a tool increased two‐fold from 1996.

“Financial incentives almost always influence the site selection process for medium and large sized businesses.

“Communities seeking to target their spending on attraction use cluster analysis to focus their marketing and recruitment efforts to specific kinds of businesses.

“Workforce development incentives have become an important business attraction tool. “Quality of life attracts businesses and workers because a business wants most of its workers to

move with it.” 27

4.3StakeholderContactandInterviewsThe intent of contacting stakeholders in both the solid wood and forest use was to discern levels of interest, a scan of the current business climate in the area and to develop a better understanding of what the key issues and opportunities are from the perspective of those people resident in the area with vested interests in the positive outcomes of investments made by the Sechelt Community Projects Inc. organization.

Firstly, a list of prospective respondents was derived from Chamber of Commerce Members, Economic Development Task Force Members and participants in a Community Forest Forum held in 2008. The people that participated in the D.J. Gillis and Associates Pre‐Feasibility study for Value Recovery Business Opportunities on the Sunshine Coast were also included. A list of the pool of responde3nts is illustrated in Appendix I.

Secondly, Everyone on the list was invited to participate in an on‐line survey which included 86 questions covering the following subject areas:

1. Stakeholders Views and Attributes; 2. The Top Ten List and need for Strategic Focus; 3. Business Activity 2011 Q3; 4. Views on Regional Workforce; 5. Regional Change; 6. Technology Talk; and; 7. Management Team Dynamics.

Unexpected challenges in this approach included the length of time required to secure responses, the lack of interest in responding and from some respondents, their inability to answer basic business questions. The

27 http://www.iedconline.org/index.php?p=Guide_Attraction




later due in part to the fact that the person replying on behalf of a business was not the person responsible or in fact, may have represented a non‐government or government organization. This underpins the critical nature of having discussions with the business community before pronouncing strategic directions or change.

Thirdly, everyone was invited to attend focus group meetings conducted at the District of Sechelt Municipal Hall Committee room over a three day period. The sessions were scheduled so that business people could actually attend before, at noon or after regular business hours. The turnout was very low. There is no point in speculating as to why this was the case. The people that did attend provided valuable insight into the context and climate for business development.

In order to complete this consultation process, it is recommended that the report be circulated to key organizations in the community, including major employers, wood and forest users for additional comment and that the findings be presented at a public meeting once the document has been released. This will ensure that the direction taken by Sechelt Community Projects Inc. comes as no surprise to any constituents. This is a key factor in ensuring responsible representation of public assets, a traditional that SCPI has maintained since its inception.

4.4StakeholderOpinion

4.4.1TheSunshineCoastBusinessClimateSurveyResponses

The following are highlights from the online survey completed in September 2011 by Capital EDC Economic Development Company. By no means are these results presented in a scientific defensible format. They are merely an indication of views of the respondents at a given point in time. The Region referred to is defined as the “Lower Sunshine Coast” comprised of Sechelt, Gibson’s, the Regional District and the First Nation administration.

4.4.2StakeholdersViewsandAttributes

A majority of respondents see the Sunshine Coast Region in a positive manner.

A majority of respondents believe that non‐residents perceive the Region in a positive way.

Effective Local and Regional Economic Development means:

Existing Business are stable and expanding in the region [24.5%]

More jobs in the region [20.4%]

Higher standard of life [16.3%]

Other possible indicators of effective economic development did not rate as high as the previously mentioned outcomes. This includes Improved reputation of the region, more visitors to the region, better amenities afforded by the region, or better educational opportunities offered in the region.

The majority of respondents perceive issues and opportunities with a rural lens. Resource and Suburban lenses rated somewhat less. Urban and Remote lenses barely rated at all.

A majority of respondents indicated that they would like to see a focus on the recruitment of manufacturing and Processing, Retail and Service Commercial investment.

The three greatest strengths that make the region a viable place to run a business identified by the respondents included:

Proximity to Vancouver;

Close proximity to recreational sites; and;

Entrepreneurial Talent and Affordable Housing.

The Sun Coasts Biggest Challenges include:

Availability of well‐paid jobs;

Keeping young workers; and;

Local Government leadership and citizen attitude.

The top three subjects that economic development in the region should focus on include:




Support to existing business retention;

Growth of the small business community; and;

Recruitment of non‐retail and service commercial business.

Local Governments should spend more time on:

Creating local employment opportunities;

Learning and leading;

Providing affordable housing, natural spaces, parks and recreation.

The majority of respondents were independent business owners [soho28] and small enterprise owners with 2‐20 employees.

The majority of respondents reported that they were strong in corporate finance and consulting skill sets, but not so much in governance, web commerce, and economic development.

The majority of respondents were from the U65 cohort with few to none in the U36 and U25 age cohorts.

4.4.3TheTopTenListandneedforStrategicFocus

Highest business risk priorities that shape the current economic picture in ths region include:

Slow Recovery or double‐dip recession;

Managing Talent and the need to retain trained people;

Emerging Markets; and;

Radical Greening of the economy impacts on local business climate.

Lowest business risks identified by the respondents include:

Non‐traditional entrants into the local marketplace as competitors;

Social acceptance, risk and corporate social responsibility; and;

Access to credit and regulation and compliance challenges.

An in depth comparison of the Sun Coast Results with the global report prepared by Ernst Young would reveal that issues that are critical in a global context are not necessarily important or not important to this business community.29

In terms of ranking Compliance, Financial, Operational, and Strategic Issues as they relate to businesses operating in this region, it is clear that Financial and Strategic are ranked higher than Compliance and Operational challenges.

4.4.4BusinessActivity2011Q3

Respondents indicated that they did no see a product‐service mix change in the past 3 years.

They don’t expect much of a change in the next 18 months.

The majority of respondents indicated that they serve a special niche market.

Most of the respondents characterized their business as standard profit margins, followed by a second group that indicated high margin with low volumes of sales.

The majority defined their trade areas as being more than 30 kilometres with a significant number of respondents identifying their trade area as global.

They identified that the majority of businesses reporting stable or increasing sales, with one‐quarter of the respondents citing a decline in sales.

Average sales are reported to be predominantly stable or increasing, with less business [people reporting decreases.

28 Sole Owner Home Office

29 http://www.ey.com/Publication/vwLUAssets/Business_risk_report_2010/$File/EY_Business_risk_report_2010.pdf




Customer client groups are focused on:

Individuals

Families and;

Other Small Businesses.

The average age cohorts of customers indicated the over 45 groups as being dominant and the U45 groups barely registering. 64+ was a small consideration in this profile.

Respondents indicated that they derive sales from a combination of referral | word of mouth, walk‐in | call‐in sales, and advertising. Less business built on internet, direct mail, trade shows or social media.

A large percentage of the respondents indicated that they have plans to expand or renovate in the next three years.

The majority, by a large margin have no plans to leave their current premise.

4.4.5ViewsonRegionalWorkforce

Respondents rated the regional workforce in the following terms:

On the availability of workers in the area predominantly low;

On the quality of the workforce in the area as moderate;

On the stability of the workforce in the area trending higher;

On the productivity of the workforce as higher.

A majority of the respondents indicated that they had 41% to 100% of employees are head of households. This means that there is a small percentage of the workforce that are individuals indicating that any change to employment has significant repercussions.

There is not enough of an indication that demand for labour is increasing to warrant a detailed workforce strategy for the region.

The number of unfilled positions is stable indicating that there are a number of jobs that are going without fulfillment. There may be reasons for this linked to the candidates perception of the community with respect to retaining home value or the ability to sell over time.

Respondents indicated that they generally no not import their workforce.

A majority of the respondents indicated that they expect no major changes in the workforce. This may be indicative of a poorly informed business community as provincial efforts indicate otherwise anticipating very large deficits of skilled people.

Respondents indicated that they either provide benefits or do not, equally. Of those benefits provided, Health is followed by profit sharing and retirement pension.

They indicated that space for training is provided in the workplace, with a smaller emphasis off‐site followed by sponsored placement at an institution.

70% indicated that investment in training was stable with 30% indicating that their financial commitment was increasing.

Respondents indicated that their top contributions to workforce initiatives include:

A focus on employee retention;

Employee recruitment; and;

Industry retention programs, youth programs and women support programs.

To a lesser degree:

Industry recruitment programs;

Elder Programs;

Aboriginal Programs;

New immigrant programs; and;

No support for men’s programs.




4.4.6RegionalChange

There is little expectation for changes in the regional or local picture in the near term.

To a larger degree, there has been some change in how the respondents view doing business in the region. But for the most part, their view is that it has not changed.

They reported that they have no difficulty securing most business services in the region.

The majority of respondents indicated that they do not anticipate any global, federal, provincial, regional or local legislation changes that will adversely affect their business in the next three years. However, 38% did expect negative legislation in the next three years.

Even more responded negatively to the expectation of benefits from changes in legislation.

4.4.7TechnologyTalk

The opinion with respect to new technology merging that will change their businesses was evenly split between yes and no expectations.

There was somewhat of a positive expectation that technology based opportunities arising for their businesses. However the majority expressed no expectation.

They ranked technological impact highest in terms of:

Internal Office Communications;

Marketing; and;

Operations‐production.

They ranked technological impact lowest in terms of:

Social Media;

Corporate Social Responsibility; and;

Community relations.

Their investments in technology rank highest in terms of:

Equipment;

Employee training; and;

Owner training.

The lowest impact of technology investments indicated:

Employee retention; and;

Employee recruitment.

The majority of respondents indicated that the region’s technological infrastructure was adequate for their growth plans.

4.4.8ManagementTeamDynamics

The majority of respondents indicated that there has been no change in ownership or senior management of their businesses.

There is a strong indication that owners are involved in the day to day operation of the business.

The top 20% of their business customers represent more than 36% of all sales.

Budget allocations for advertising, promotion and non‐core spending are stable, with some indications of increase.

There is a strong indication of business contributions in‐cash and in‐kind to the community.

There is an indication that businesses invest time and money into cooperative marketing efforts with other regional businesses, but the majority does not.

There have not been many changes to supplier relationships with the respondents in the past 2 years.




4.5TheSunshineCoastFocusGroupMeetingResponsesCapital EDC Economic Development Company Consulting Economic Developer Patrick Marshall hosted 6 of 9 scheduled focus group meetings on Friday September 16th and Saturday September 17th 2011 at 0730 hrs., 1130 hrs. and 1800 hrs. on both days. These hours were specified so as to allow business owners and operators to participate without impacting their very busy schedules.

The intent of focus groups is to engage in direct conversation with respect to the form and function of the Community Forest Program as it relates to business retention, expansion and recruitment of new business in the context of the use of solid wood in the region and the use of community managed forests. Participants were invited from the same list exhibited in Appendix I. Notes from these sessions are listed in Appendix V.

4.5.1PhysicalInfrastructure

Participation by SCPI in physical infrastructure was limited to indirect support to organizations such as the Hidden Grove Society. SCPI has expertise and a few dollars that could be invested in the organization to aid in demonstrating the context6 and value of community forestry.

4.5.2HumanCapacityInfrastructure

Examples of prospects for CPI in this area included support to the SCTrails organization to build actual trails, the business case for a specialty school within Capilano University, Sechelt Campus as well as focusing on efforts to contribute to Forest Workforce initiatives designed to link the community forest to training and education opportunities.

4.5.3CommunityCapacityInfrastructure

By investing in the previously mentioned opportunities, conversations indicated that SCPI would be well served through partnerships in all aspects of investment in the community. This means that partnerships should be sought on all initiatives as a condition of investment so as to leverage limited dollars and expertise .

4.5.4BusinessInfrastructure|90dayActions

There were no 90 day actions identified that SCPI could take. The regional economic development function needs to materialize before SCPI can play a contributory role as a partner, while providing expertise in terms of professionals and experts in the Forest Industry field. The

4.6WoodUserStakeholders

The following section briefly summarizes the results of the stakeholder consultations for participants from the solid wood industry. Few wood users from the area chose to participate in the consultation. The two types of solid wood users include industrial and artisan. Neither group is strongly represented in this initial work.

Factors contributing to this lack of interest were speculated by focus group participants and included:

The state of the local and regional economies have forced people involved in the harvest of solid wood to work further afield;

Many of the small and medium enterprises are facing succession and workforce issues that cannot be resolved individually;

The conflict over the treatment of small business by neighbours and interest groups keeps people from participating; and;

There is no focal point for people of common interest to come together.

The following categories of business were mentioned as drivers of solid wood business, both industrial and artisan or the most probable market opportunities for the Sunshine Coast:

Existing Businesses within or near the business area – Often the best leads are found near home. Leads might include existing businesses seeking more space or a better location in the business area . The area’s business owner’s survey as well as ongoing conversations and personal contacts of the




recruitment team, chamber of commerce and other economic development professionals can help identify these leads.

Emerging Entrepreneurs ‐ Downtowns and business areas are often attractive to independent businesses. Accordingly, leads might include home‐based or garage‐based businesses seeking more fitting space and a convenient location for their customers. These leads might include managers of existing businesses wishing to go into business on their own. Commercial lenders, business schools, Community Futures, Downtown Improvement program business specialists, Service Corps of Retired Executives (SCORE), Rotary Club International (PROBUS), chamber of commerce and other public or private small business professionals should be asked to help identify these leads.

Small or Medium Enterprises ‐ Local or regional businesses, particularly those that have branch stores between miles away and are ready to expand, are often excellent prospects. These business operators typically have a good knowledge of the market area, and may already have multiple stores. They are often interested in expansion as a way to improve their penetration of the market. These leads can be identified through your team’s knowledge of the business mix in other communities in the region and information collected from your local consumer research. In addition, realtors, commercial brokers, sales representatives and supplies that work within the region can be helpful. Sometimes ads in regional business, real estate and regional lifestyle periodicals can generate leads.

Corporations ‐ If local or regional businesses are not interested in expanding, corporations can be contacted. It is important to be realistic about the kinds of corporations that might be interested in a small community as their operating requirements may preclude them from considering the area. Leads can be identified through directories and private databases listing corporate site selection criteria and contacts. In addition, leads can also come from commercial brokers, trade shows, “deal making forums,” and conferences such as those offered by International Franchise Association or the International Council of Shopping Centers.

It is also important to note that a number of stakeholders supported that the Community Forest Corporation support and allow the designated commercial forest to be used by other activities or industries to help share the cost of communicating the value of having a community owned and operated forest.

The following items were mentioned as being primary challenges in attracting new business in the form of expansion and recruitment:

Attracting corporate businesses to locate on the Sunshine Coast is likely to be difficult – these businesses need to be closer to a larger cluster of manufacturing and processing activity.

To be successful, solid wood operations need to be based either at regional service centers or at the point of international trade distribution. The Sunshine Coast is characterized by its residents as a “bedroom community” to Vancouver, not far enough away to generate a significant investment in production infrastructure.

4.7ForestUserStakeholders

The following section will briefly summarize the results of the stakeholder consultations for Forest Users. The majority of participants in the consultation process were either residents of the area of representatives of Forest User groups. While a number of other industry associations or related real estate firms were approached, the facilitator was unable to complete interviews due to unavailability of representatives from the respective companies or their reluctance to participate.

Due to the higher level of expressed interest, Forest Users had more to contribute with respect to defining ways to build the understanding of the values of a community owned and operated Forest.

Conservational Educational Historical Recreational




4.8OpportunityAssessmentSummaryBased on the trends contained in the environmental scan contained in the previous sections and the results of the stakeholder consultations, the list below contains the Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis of the market opportunities for Woo and Forest Uses in the Sunshine Community Forest Area. The summary information is presented in alphabetical order.

Strengths Airport exists as a development opportunity for general aviation and airport compatible businesses

because property is largely unobstructed. Airport identified as an Omenica Regional Priority by the Beetle Action Coalition of Community Leaders. Positive attitude recognized outside of the community. Positive microclimate in Vanderhoof allows for more favourable flight training conditions, emergency

access and living conditions than other regional airport locations. There are a number of aircraft owners and operators residing in the community that have an interest in

seeing the airport succeed. Very favourable and accessible flight approaches due to the better than usual engineering design of the

runways.

Weaknesses Absence of aviation interests working with the municipal economic development advisory Committee. Absence of a broad based retention and expansion process for the Municipality makes priorities unclear

regarding potential commercial development on airport lands/ Absence of the market conditions for a Micro Business based Aviation Cluster. Internet has changed the Repair, Maintenance and Overhaul (RMO) business; these firms now have more

flexibility in terms of business location. Lack of an owner and pilot ready room with shower, washroom, kit lockers and lounge with web access

for weather. Relatively short‐term lease terms and low rent levels discourage reinvestment in airport properties. Suitable civil infrastructure (water/sewer/electricity) may be required for some commercial businesses. Vanderhoof not profiled in Regional Business Coalitions such as NIMBC and other listed.

Opportunities A formal process to engage Prince George Airport and others in advocating for regional general aviation

interests. For example, dealing with regulatory bodies such as NAVCAN, the importance of Vanderhoof airport for medivac service, as a back‐up base for forest fire fighting and other interests.

An informal or formal Community to Community engagement strategy with the College of New Caledonia’s Aviation Business Diploma program and the following First Nations is an opportunity to be pursued; Saik’uz First Nation; Nak’azdli First Nation; Nadleh Whut’en First Nation; Stellat’en First Nation; Takla Lake Band; Tl’azt’en First Nation; Yekooche First Nation; and the Carrier‐Sekani Tribal Council (CSTC), so the strength of leadership is leveraged for the training and engagement of youth into the Aviation Industry Cluster, bringing other resources to the table that would not otherwise be present.

Several resident and nonresident business people identified an interest in securing fee simple land to bring external maintenance contracts within their business operation which is a form of export replacement resulting in business retention and expansion.

There are opportunities associated with the forestry and natural resource sectors as these sectors rebound from the economic slowdown.

There could be a link to Resource Management, Helicopters and Training, enough to substantiate a competency area within a Micro Business Aviation Cluster or further development of the College of New Caledonia’s aviation programs.

Shortages of commercial land with good road access could increase the property value of vacant airside reserve, groundside and property adjacent to the main access road running parallel to the paved runway if airport complementary business activities were steered toward the airport.

Threats Lack of visibility in regional business coalitions such as:




Association for Mineral Exploration British Columbia Association of Professional Engineers and Geoscientists Central Interior Logging Association http://cila.ca/ Energy Services BC Geoscience BC Kamloops Exploration Group http://www.keg.bc.ca/ Mining Association of BC Northern BC Construction Association http://www.nbcca.bc.ca/ Regional District of Bulkley Nechako http://www.mining.rdbn.bc.ca/ Smithers Exploration Group http://www.smithersexplorationgroup.com/ Lack of secure areas may decrease potential interest in airport use due to perceived coast of securing

operating areas airside. Split management of airport and riverfront air operations may result in under achievement of goals. There has been a shift from medium to small business sizes in the region, now moving down to micro

businesses comprised of owner‐ operators, which makes financing difficult. The 2006 Land and Coastal Resource Management Plan, a Provincial regulatory process has lapsed.

Uncertainty due to a gap in policy may have a negative influence on the perception of the region as a profitable place to invest. Completion of the Omenica Regional Economic Development Strategy slated for December 2011 may also contribute to an uncertainty with respect to regional priorities.

Vanderhoof’s close proximity to a well‐established network of logging roads reduces the need for air access to the productive forest regions.




5.0AssessingSunshineCoastCommunityForestDiversificationOptions

The following are options available to the Sechelt Community Projects Inc. Board of Directors when consider how to implement an economic diversification strategic plan:

Do Nothing

By taking no action, the Board will continually be requested to hand over the cash proceeds of their efforts to some other organization. This will not fulfill the underlying reasons that the organization was created, not will it uphold the fundamental policies and principles for which the organization was created.

Wind up

A decision to wind‐up the organization would result in the loss of very valuable human resource assets in the form of the volunteers that contribute tike, energy and professional clout to the tasks of ensuring positive returns to the constituents of the Sunshine Coast Region. It would also create a legacy issue in that future prospects would not choose to make a commitment based on the history of previous attempts.

Merge

Merging with other Community Forests owned and operated by local and aboriginal governments is an option. Not however in the current condition. In some cases, annual allowable cuts and tenures are too small in terms of individual organizations, to sustain wood manufacturing operations. The decision to merge in the interest of efficiency and marketability will always be an option. Entitlement, ownership and expectations of treaty allocations will stand in the way of good business practice.

Acquire

The prospects for acquiring more tenure are already addressed in the overall strategy for the organization.

Contract

There are two types of contractors:

Those that offer one offs; and; Those that train people in the community to fulfill the work.

The organization should choose the second.

Partner

Clearly, this is the approach that must be3 mastered by the organization as it has no full‐time employees and is operated by contractors.

5.1OptionstobeimplementedwithintheOrganizationThe results of the analysis and stakeholder interviews indicated that the following opportunities represented the most promising Initiatives for the SCPI economic diversification mandate:

Now

Subject 4. Physical Infrastructure

There is an expressed interest in collaborating with the Sunshine Coast Trails and Secret Grove Societies to make small contributions to infrastructure that would assist in the completion of this new infrastructure. In order to proceed, Memoranda of Understanding would need to be created to demonstrate the substance of the relationship. Capital EDC proposes to deliver these components under a monthly retainer with SCPI reporting to the President and General Manager.

There may be additional advantages to the General Manager’s direct involvement in these relationships in terms of visibility on the community and leveraging other professionals to make contributions in addition to the ones directly made from SCPI.




Subject 5. Capilano University Initiative

Working with the leadership of the Capilano University Tourism and Outdoor Recreation program, SCPI and its volunteers have a great opportunity to apply their personal and professional skill sets to a program which adds value to the Sunshine Coast. This program takes the unique characteristics of the Sunshine Coast and combines it with people that seek careers in outdoor education and recreation that will amplify the Forest values identified by SCPI. It’s a natural relationship that requires exploration and definition.

Subject 6. School District Initiative

There was a distinct interest in keeping young people on the coast. Public educators in British Columbia have recognized this and its starts before Kindergarten. The Sooke School District 62 has implemented its Nature Kindergarten program based on experience in other commonwealth countries. SCPI should commit to visiting this program with a Task Group so that the K to 12 continuum of education that takes children through programs that prime them for lives in the Forest and Outdoor industry are a priority for School District 42.

Subject 7. District of Sechelt joint plans

The sole shareholder, the District of Sechelt has just elected a new Council for a 36 month term. It would be approach for the management teams from both organizations to meet to review this strategy with the local government lens to identify any opportunities for leverage and to ensure that SCPI is contributing to the shareholders strategic vision.

There should be links made to the Corporate Strategy, OCP and Sustainability plans for the local government.

Subject 8. Regional Alliance joint Plans

Clearly, SCPI has the top Forest and Wood talent in the region. It is important that the Board of Directors, President and General Manager ensure that they are connected to the new Economic Development Alliance so that they can provide key focus and direction for the regions business retention and recruitment strategy from the Forest and Wood perspectives.

Organizational Actions

Subject 13. Upgrade Web & Communications

The web site used to represent SCPI is a static business card. Capital EDC is ready to work with SCPI and the web service provider to optimize the existing infrastructure to accommodate the Forest and Wood economic diversification strategy and social media required communicating all of these opportunities. Should the existing provide be unable to make changes, a suitable provider will be sought on the sunshine coast.

Subject 14. Create Reporting Tools

Due to previous public participation and stakeholder engagements, SCPI has default to responses designed to accommodate proposed “Freedom of Information” requests. There is an absence of communications tools designed to convey a positive response and community engagement process. While the Board of Directors and staff may have many committees, the effort is lost in the transmission. Capital EDC is prepared to work with staff in developing new tools and conveyances that will ensure that the public better understands the scope and tangible benefits of the Community Forest.

Subject 15. Sustainability Review

The subject of how well the organization deploys sustainability principles is now a mainstream expectation for any stakeholder engagement process. Capital EC has a Check List approach that can be fulfilled under a separate proposal at a reasonable cost. Other process may be sought once Capital EDC has had an opportunity to discuss Blueplanet Value Management with SCPI.

The benefit to this approach is to mute unsubstantiated criticism regarding the practices of the Community Forest organization.

Subject 16. Governance Review

The organizational frameworks used to construct SCPI were based in economic development organizations that operated outside Municipal Hall. There has been a lot of progress made since the late ‘90’s and its time for SCPI to demonstrate a transparent and responsible Governance Report.




Capital EDC has a program designed that will be presented as a separate proposal to Blueplanet for the Board consideration. Some processes can run tens of thousands of dollars. The program provided by Capital EDC costs far less.

5.2OptionstobecontractedbytheOrganizationThe results of the analysis and stakeholder interviews indicated that the following opportunities represented the most promising Initiatives for the SCPI economic diversification mandate:

Now

Subject 1. Communications Tools

An independent wood and forest use web portal designed to tell the stories of the people that value wood and forest use to be developed on a contract basis providing access and controls to the individual groups that SCPI partners with.

The community forest corporation made it clear that its existing on‐line assets were to be used for its corporate reporting purposes. Any additions made to accommodate the economic diversification strategic plan would cloud the responsibility of the board. Therefore, Capital EDC proposes to work with an appropriate web designer on the coast to develop a campaign site and network that supports the Sunshine Coast Community Forest Initiative. New web and social media packages

5.3OptionstobepartneredwithotherOrganizationsSmall matching capital investment in the Sechelt Groves Society, in addition to upgrading the collateral materials and tools required for fundraising for the Groves trails and communication efforts;

Small matching capital investment in the Sunshine Coast Trails Society initiative to establish a sustainable operating framework for the development of the outdoor recreation industry opportunities associated with a regional Trail system, including the addition of the influence of the Board of Directors of SCPI in inviting corporate interests to participate in the completion of the regional trail system;

Participation in the business retention and expansion operations specifically focused on the wood industry resident in the region to focus on the “sell local” approach to building the market for Sun Coast Wood products, services and intellectual property, but not as an isolated effort, only as a partner in a bigger regional effort;

Participation in the foreign direct investment and recruitment of new business to the Sunshine Coast with a focus on solid wood use and access to public forest lands as a contribution to the regional Manufacturing and Processing capacity and the Hospitality Industry that exists in the region. Again, as a partner and not a sole initiator; and;

Participation in a region wide effort with peer group community forest organizations in an effort to create a regional community forest portrait suitable for inclusion in the British Columbia Community Forests “Bridges” initiative.

Now

Subject 2. Agreements

Capital EDC can co‐ordinate the development of the agreements required to define the relationship and desired outcomes between SCPI and its partners

Subject 3. Community Capacity

Once the agreements are in place, Capital EDC can prepare the actual implementation plans for each of the projects so that all plans are in the same format and continuity is maintained.

Advocacy

Subject 9. Public use of the Forest

Through strategic partnerships with the Groves and Trails societies, the Board and staff are advocating for other community interests that demonstrate and support the same values as the community forest. Even if




collaboration agreements are not completed, SCPI will benefit by supporting these two organizations in the broader community at‐large.

Subject 10. Wood Culture on the Sunshine Coast

Advocating for the wood culture includes working with artisan groups through to the remaining small and medium enterprises on the coast. This may or may not include direct working relationships. The Board of Directors and staff will have to consider which causes they can advocate for on a case by case basis.

Subject 11. Outdoor Recreation Industry

This segment of the retail and service sector is the one that repeatedly emerged in conversations in the community as having the most prospects in terms of education and training, and resident retention. The region is Whistler’s “Back 4” and will serve as an important year round training and education lab. The Board of Directors and staff advocating for groups working to improve the profile of this sector will be useful to SCPI self‐image and stakeholder engagement.

Subject 12. Resource Education and Training

Working with School District 42 and Capilano University to refine the sustainable resource management and outdoor recreation management programs is a clear winner for the Board of Directors and staff. Both of these approaches provide the continuity in education and training to aid in the retention and recruitment of employees and employers associated with both the Forest and Wood user groups.




6.0DIVERSIFICATIONSTRATEGY‐REFININGTHESUNSHINECOASTCOMMUNITYFORESTVALUEPROPOSITION

6.1DiversificationObjectivesThe 2012 Sun Coast Wood Economic Diversification Plan acknowledges that at the present time the community forest corporation does not have the necessary infrastructure (sustaining revenue, staff capacity, or skill sets) in place to implement this plan or any economic diversification strategy outside its forest management mandate. The result of the stakeholder interviews conducted for this study validated the importance of partnership and leadership.

However, constituents and residents of the Sunshine Coasts vast and diverse groups of neighbuorhood’s need to be understand that the mere existence of a community forest tenure does not lead to instant investment in the form of wood manufacturers and processors in the short‐run. The provision of limited dollars generated by the sale of local wood to retention and recruitment efforts alone is insufficient to attract new business to the community because the forest and solid wood sector is still recovering from the full effects of the waves of economic recession. The Sunshine Coast is competing with existing manufacturing‐processing and hospitality infrastructure where existing capacity can be used more intensely, expanded more quickly, or at a cheaper cost than providing new services on the Sunshine Cast.

Two main areas were identified regarding ways to address diversification risks. They involve consideration of the following factors:

1. How much the Community Forest organization can implement on its own;

2. How much the Community Forest Corporation can initiate with the participation of other organizations.

The results of the review of existing operations and consultation with stakeholders clearly indicate that a broader range of partnered initiatives would improve the success of diversification efforts. The uses to consider include ‘wood use manufacturing and processing’ and ‘forest use’ businesses.

6.2ShortTermActionsShort‐term actions include:

(a) new communications tools to define wood and forest use awareness created by the Community Forest;

(b) the broadcast of stories by residents and newcomers that share the same values; and;

(c) establishing Letters of Understanding with the Sechelt Groves Society and the Sunshine Coast Trails Society.

Short‐term Action

(a) New communications tools to define wood and forest use awareness created by the Community Forest through the creation of a stand‐alone web site for the Sun Coast Wood and Forest Initiative

‐ Complete a branding strategy. Suitable organizations would include the local and regional societies surveyed, Capilano University and an open call to residents and business owners in the region. The maintenance of the web site will be sustained by low cost subscription fees whereby, the users are given full managed access to the resource section, blogs and most wanted sections with current information and contact details for opportunities relevant to the wood and forest use in the region.

‐ Work with the other Community Forests in the Eco Region to build the profile for the BC Community Forest Association Bridges project.

‐ Work with local and regional partners to identify 1 quarterly event to coat tail efforts to inform, educate and train the residents of the coast in the value of wood and community forests.

(b) The broadcast of stories by residents and newcomers that share the same values

‐ Work with existing community media and interest groups to provide opportunities to enumerate stories related to wood culture and forest use.




‐ Determine who the local champions are for each subject area and determine who the subject matter experts are.

‐ Develop broadcast media including digital video, audio, print for unique distribution using local producers.

‐ Partner with all regional media outlets to determine how best to grow the product.

‐ Train the trainers in understanding the vocabulary and culture of solid wood use and forest uses.

(c) Establishing Letters of Understanding with the Sechelt Groves Society and the Sunshine Coast Trails Society

‐ Develop separate Letters of Understanding that address the values of partnering with both local organizations

‐ Both organizations speak to forest use values. Use this experience to build the wood use value experience.

6.3LongTermActionsLong‐term actions include the negotiation of Memoranda of Understanding with each of the four local and aboriginal governments, economic development task force, community organizations and independent businesses with respect to wood and forest use strategies designed to diversify the regional economy.

Long‐term Action

Bring forward the longer term subjects upon the completion of the short term in 2012.




7.0ImplementingtheDiversificationRecommendations

The following tables are a standard means of communicating strategy in a simple form. They are derived from forms developed by the Local Government Institute, a business developed by a former Chief Administrative Officer from British Columbia. Gordon McIntosh is the founder and President of the Local Government Leadership (LGL) Institute. Gordon has conducted over 800 sessions involving 80,000 elected and administrative officials throughout Canada and overseas. He has 31 years of experience in management, educator and consultancy roles in the public sector. His managerial positions cover the corporate, community development and human service functions of local government. Gordon's current faculty roles include the Universities of Alberta, Victoria and Royal Roads. [http://www.lglinstitute.com].

This approach is recommended for use in contexts and applications that are related to reporting to local and aboriginal governments so that they dovetail into corporate strategies for the sole shareholder. They are easily transformed into quarterly reports for use by the President and General Manager of public organizations.

7.1EconomicDiversificationIssuesandOpportunitiesLongListPrioritiesbytheBoardofDirectorsandStaff

This list is the be‐all, catch‐all for ideas generated at either a public forum or an internal forum. In the case of this assessment, Subjects were gathered by means of an on‐line survey of the pertinent business community, personal interviews with local and regional leaders, and a number of focus groups.

As the organization continues on with the strategic plan process, the Long List will be used in October of 2012 when the organization conducts its annual assessment of progress. The results are then reduced into basic concepts that fit within the 4 capacity groups.

Table 3 Community Forest Economic Diversification Issues | Opportunities Long List

Issues | Opportunities Long List

Subject Board Staff Total

Business infrastructure

Community Capacity Infrastructure

Human Capacity Infrastructure

Physical Infrastructure

7.2EconomicDiversificationIssues|OpportunitiesShortList

A short list is then developed by the President and General Manager for review and approach of the Board of Directors. Based on the primary research conducted by Capital EDC, the following are short list subjects for the start of this process.

There are two factors that govern how these subjects are illustrated. The capacity of the organization sets twho is responsible for the action. There are four categories within this set of criteria:

What “Group” does this initiative belong to as it relates to diversification?

1. Business Infrastructure 2. Community Capacity Infrastructure 3. Human Capacity Infrastructure 4. Physical Infrastructure

Secondly, when engaged in economic diversification, there are 5 functions that form a hierarchy. Without addressing subject 1. Fundamentals and Foundations for Operations, it is difficult to deliver on the following four criteria. Readers will note that Recruitment of new business is ranked the least important. This is because organizations that do not focus on retaining existing business, are unsuccessful at recruiting new business. 98 per cent of the activity in successful business development organizations is focused on business retention, with the remaining two percent focused on fulfilling new business recruitment.

What “Type” of issues was this defined as being in 2008 by the Facilitator?

1. Fundamentals and Foundation for Operations




2. Retain Existing Business 3. New Infrastructure that will leverage Growth 4. Communications 5. Recruit New Business and Visitors resulting in Diversification

For the purpose of this plan, the priorization of each of these subjects has been skipped. They will be ranked when the Long list is created in the October 2012. This worked is conducted in October so that it dovetails with the sole shareholders financial planning process.

Table 4 Community Forest Economic Diversification Issues | Opportunities Short List

Issues | Opportunities Short ListSubject Board Staff Total

Business Infrastructure

Communications [1] New communications tools to define wood and forest use awareness created by the Community Forest;

Stories of Forest and Wood Use [4] The broadcast of stories by residents and newcomers that share the same values; and;

Letters of Understanding [1] Establishing Letters of Understanding with the Sechelt Groves Society and the Sunshine Coast Trails Society.

Memoranda of Understanding [1] Each of the four local and aboriginal governments, economic development task force, community organizations and independent businesses with respect to wood and forest use strategies designed to diversify the regional economy.


Sechelt Groves Society MOU of support for communications and development [1]

Sunshine Coast Trails MOU of support for communications and development [1]

Economic Development Alliance for retention and recruitment programs [1]


Work with Capilano University and School District on K‐2 Sustainability Resource Management program into Outdoor Education accreditation [3]

Work with School District to foster Forest Kindergarten Program [3]


Sechelt Grove investments to complete demonstration forest [3]

Sunshine Coast Trails leverage and leadership to complete trails network [3]

CAPITAL = Board Led | Regular Font = Staff Led | UNDERLINED CAPITALS = items for Board & Staff | italics = consultant led

7.3EconomicDiversificationFocusAreas

This table illustrates the four focus areas for the organization. It is used when reporting externally and to summarize the annual priority setting process held in October of each year.

Table 5 Community Forest Economic Diversification Focus Areas

Community Forest Economic Diversification Focus Areas

Subject Board Staff Total

BUSINESS INFRASTRUCTURE




CAPITAL = Board Led | Regular Font = Staff Led | UNDERLINED CAPITALS = items for Board & Staff | italics = consultant led

7.4EconomicDiversificationStrategicPriorityWorkProgram

This is the actual work program illustrated in an oversimplified format. It contains the Priority, the intended outcome, the tangible benefits associated with this priority.

The second column illustrates the title of the people that are required to fulfill the action. Finally, column three shows the steps such that the people responsible can report out on the state of the action on a quarterly basis in less than 3 pages.




Table 6 Community Forest Economic Diversification Strategic Priority Work Program

PRIORITY | Desired Outcomes OPTIONS | Strategy ACTION | Responsible

Now

1. Communications Tools New web and social media packages

Elected Official and staff buy in

Public Support

Shared resources and knowledge

Improved profile

Leverage external human resources

In‐House

Consultant to coordinate

Volunteers

1. Retain facilitator 2. Map out required resources 3. Find local suppliers and contributors 4. Work with EconDev Committee 5. Coordinate with Regional EconDev Alliance 6. Launch Fall 2012

2. Agreements Responsible and Accountable relationships

Clear mandates to cooperate

Public Understanding

Measurable outcomes

Tangible Outcomes

Annual Reviews

In‐House


Volunteers

1. Retain facilitator 2. Map out required resources 3. Find local suppliers and contributors 4. Work with EconDev Committee 5. Coordinate Grove, Trails Societies & Regional EconDev 6. Launch Summer 2012

3. Community Capacity Development joint plans with Grove and Trails Groups



Measurable outcomes

Tangible Outcomes

Annual Reviews

In‐House


Volunteers

1. Retain facilitator 2. Map out required resources 3. Find local suppliers and contributors 4. Work with EconDev Committee 5. Present to societies for review and approval 6. Launch Summer 2012

4. Physical Infrastructure Schedule Construction with Partners



Measurable outcomes

Tangible Outcomes

Annual Reviews

In‐House


Volunteers

1. Retain facilitator 2. Map out required resources 3. Find local suppliers and contributors 4. Work with EconDev Committee 5. Present to societies for review and approval 6. Launch Fall 2012

Next

5. Capilano University Initiative In‐House


Volunteers

1. Once Agreements in place, SCIPI and facilitator to link CU to BC’s Workforce Initiatives

6. School District Initiative In‐House


Volunteers

1. Once Agreements in place, SCIPI and facilitator to link SD 46 to BC’s Workforce Initiatives

7. District of Sechelt joint plans In‐House


Volunteers

1. Once Agreements in place, SCIPI and facilitator to link DOS to OCP and Sustainability Initiatives

8. Regional Alliance joint Plans In‐House


Volunteers

1. Once Agreements in place, SCIPI and facilitator to link EconDev to retention and recruitment program

Advocacy

9. Public use of the Forest In‐House


Volunteers

1. Outcomes and links to items 1‐4

10. Wood Culture on the Sunshine Coast

In‐House


Volunteers


11. Outdoor Recreation Industry In‐House


Volunteers


12. Resource Education and Training In‐House 1. Outcomes and links to items 1‐4




PRIORITY | Desired Outcomes OPTIONS | Strategy ACTION | Responsible


Volunteers

Organizational

13. Upgrade Web & Communications In‐House


Volunteers

1. GM and facilitator to review options with current service provider. 2. Complete upgrade by Summer 2012

14. Create Reporting Tools In‐House


Volunteers

1. GM and facilitator to review options with current service provider. 2. Complete upgrade by Summer 2012

15. Sustainability Review In‐House


Volunteers

1. EconDev Committee to review Blueplanet Proposal. 2. Complete by Fall 2012

16. Governance Review In‐House


Volunteers

1. Chair, President and GM to review Capital EDC proposal. 2. Complete by Summer 2012

7.4BlueplanetSustainabilityCheckUp

Research indicates that the general public and consumers have become more diligent in asking for the state of sustainability associated with products and community organizations. Capital EDC Economic Development Company developed the Blueplanet Sustainability Program for government and business as a means of evaluating where the organization stands with respect to basic sustainability criteria. The following is the mark issued to organizations that are engaged in this annual program.

Figure 5 Blueplanet Value Management System Trademark

Table 7 Blueplanet Sustainability Check Up Categories

Blueplanet Sustainability Check Up

Success Indicators Compliant Non‐Compliant

Governance Achievement of Community Forest Objectives Achievement of Plan Objectives

Assess Status Assess Status




Blueplanet Sustainability Check Up

Success Indicators Compliant Non‐Compliant

End Statements Operational Compliance Relationship among Directors Relationship with Buyers Relationship with CEO Relationship with Constituents Relationship with Licensors Relationship with other Community Forest Organizations Relationship with Sole Shareholder Relationship with staff

Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status

Social Active and Healthy Lifestyle Arts and Culture Caring Community Community Safety Education Recreational Uses Sense of Heritage Workforce Opportunities

Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status

Environmental Designated Natural Areas Discourage Air and Water Pollution Environmental Public Education Planned Growth Preservation of Agricultural Land Preservation of Environment Preservation of Lakes and Streams Promote Water Quality & Conservation Protection of View Scapes Responsible Land Use Use of Alternate Utilities

Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status

Economic Affordable Land Prices Business Expansion Business Owner Engagement Business Recruitment Business Retention Competitive Mixed Tax Rates Economic Stability Employment Participation Rates New Construction Population Diversification Positive Clout Skilled Workforce Opportunities Sustainable Land and Property Assessment Values

Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status Assess Status

7.5StrategicPlanDashboardforExternalPurposes

The following Dashboard was created for the organization to use as a summary table when communicating progress on the implementation of the strategic plan.

Table 8 Community Forest Economic Diversification Strategic Dashboard

Sunshine Coast Community Forest Economic Diversification Strategy Dashboard

BOARD PRIORITIES [Directors | CEO]

Now 1. Communications Tools 2. Partnership Agreements with Local Societies 3. Community Capacity Building

Advocacy ‐ Public use of the Forest ‐ Wood Culture on the Sunshine Coast ‐ Outdoor Recreation Industry




4. Physical Infrastructure Investments Next ‐ Capilano University Initiative ‐ School District Initiative ‐ District of Sechelt joint plans ‐ Regional Alliance joint Plans

‐ Resource Education and Training

ORGANIZATIONAL PRIORITIES [ Chair | CEO]

‐ Sustainability Review and Assessment ‐ Governance Review and Assessment

OPERATIONAL PRIORITIES [CEO | Assistant | Technical Consultants]

‐ Upgrade Web & Communications ‐ Create Reporting Tools




8.0 FinancialAllocationsforDiversificationPlanning Purposes

A lot has been learned about the Sunshine Coast, the interest in wood and access to the forest in the past year. The firm is pleased with the quality and amount of information provided to the economic development committee. As of this date, the firm is waiting on the opportunity to run through the two documents that have been delivered to the Board, with the intent of securing Board approval to proceed. The firm appreciates that on the face of it, the capacity for SCPI to engage in this plan with existing staff is not an option. This is why when the firm engaged the committee last year, it was with the intent of following through on implementation as a contractor and why the firm put considerably more non‐billable hours, time and energy into producing information upon which the Board can take action.

What is known now that was not known when the work was launched:

The District of Sechelt has an interest in understanding its desired outcomes from engaging in some local community economic development and economic development internally;

All four local and aboriginal governments have an interest in collaborating on the subject of regional economic development but have yet to establish the framework for that collaboration; and;

There are other organizations in the community that would appreciate collaboration with Sechelt Community Projects Inc. that are equally interested in supporting the Sunshine Coast Community Forest interest in communicating the value of the wood industry and access to the Forest.

It is expected that the firm will complete the process and achieve a resolution of an approval in principle with the Board of Directors, subject to consulting with the District of Sechelt to ensure that the plan meshes with their Corporate Strategy and is compliant with their Official Community Plan and Sustainability Plans.

Two proposed budgets have been drafted for Board consideration when funds permit. The first is an estimate of what is needed to fulfill the first two sections entitled Now 2012 and Next 2013. The second is a schedule of estimated capital contributions to be made once plans and agreements are in place.

Table 9 Plan Implementation Draft Budget Estimates

Price Proposal‐ Hourly Totals of Tasks by Team Member CEDC 1 CEDC 2 Admin

Activity Hours

$150 $150 $75 Subtotal

2012 NOW ‐ SCPI STRATEGIC PRIORITIES | SUNSHINE COAST COMMUNITY FOREST

PROJECT INITIATION

Project Initiation ‐ Client Meeting 3 1 1 $675 5

Review Existing Documents 4 1 1 $825 6

Refined Work Plan Deliverable 4 1 1 $825 6

Quarterly Committee Meetings 4 days each 32 0 0 $4,800 32

Travel and Accommodation Quarterly 34 0 0 $5,100 34

1 COMMUNICATIONS TOOLS

1.1 Meetings with community organizations 48 0 10 $7,950 58

1.2 Travel and Accommodation 2 visits 3 days each. 16 0 0 $2,400 16

1.3 Site and print design for Plan and Operations 15 100 1 $17,325 116

1.4 Social Media Package 15 5 1 $3,075 21

2 AGREEMENTS

2.1 Sechelt Groves Society Support Plan Consultation 8 0 4 $1,500 12

2.2 Sunshine Coast Trails Society Plan Consultation 8 0 4 $1,500 12

2.3 Regional Economic Development Consultation 8 0 4 $1,500 12

2.4 Training & Education Providers Consultation 8 0 4 $1,500 12

2.5 Industry and Business Consultation 8 0 4 $1,500 12

3 COMMUNITY CAPACITY

3.1 Sechelt Groves Society Final Agreements 8 0 4 $1,500 12




Price Proposal‐ Hourly Totals of Tasks by Team Member CEDC 1 CEDC 2 Admin

Activity Hours

$150 $150 $75 Subtotal

3.2 Sunshine Coast Trails Society Final Agreement 8 0 4 $1,500 12

3.3 Regional Economic Development Final Agreement 8 0 4 $1,500 12

3.4 Training & Education Providers Final Agreement 8 0 4 $1,500 12

3.5 Industry and Business Final Agreements 8 0 4 $1,500 12

4 PHYSICAL INFRASTRUCTURE

4.1 Contribution Agreements for Community Investments 40 4 4 $6,900 48

4.2 Community Investment Monitoring 40 4 4 $6,900 48

Team Member Hours Subtotal 331 116 63

Team Member Cost Subtotal $49,650 $17,400 $4,725 $71,775 510

Sub $71,775

Contingency $1,000

Sub $72,775

HST $8,733

Total $81,508




Table 10 Plan Investments in Community Capacity and Infrastructure Estimated Budgets

Estimated Contributions to Third‐Party organizations Activity Hours

Subtotal

2013 NEXT ‐ SCPI STRATEGIC PRIORITIES | CAPITAL INVESTMENTS 3 YEAR PLAN

PROJECT INITIATION

1 OPERATIONAL INVESTMENTS

1.1 Sechelt Groves Society Support Plan contribution $5,000 0

1.2 Sunshine Coast Trails Society Plan contribution $25,000 0

1.3 Regional Economic Development plan contribution $10,000 0

1.4 Training & Education Providers contribution $10,000 0

1.5 Industry and Business contribution $10,000 0

2 CAPITAL INVESTMENTS

2.1 Sechelt Groves Society Improvement Contribution $30,000 0

2.2 Sunshine Coast Trails Society Improvement Contribution $30,000 0

2.3 Regional Economic Development Relocation Website $30,000 0

2.4 Training & Education Providers Equipment Purchase $30,000 0

2.5 Industry and Business Retention Workforce Website $30,000 0

Team Member Hours Subtotal

Team Member Cost Subtotal $210,000 0

Sub $210,000

Contingency 0

Sub $211,000

HST 0

Total $211,000

In all, by implementing the first 2 sections of the proposed plan, the Board will have fulfilled the intent of reinvesting proceeds from managing community forests into community based initiatives designed to produce results in terms of:

Retaining existing business by marketing their products;

Recruiting new business by demonstrating the capacity for wood and forest activities;

Growing other wood and forest organizations in the community that would not otherwise have access to financial resources to move forward; and;

Fostered new relationships through community development that few other community forest corporations have accomplished in British Columbia.

End of Report




AppendixI‐StakeholderSurveyandInterviews Contact Name Title

X contacted and interviewed, I contacted to be interviewed, blank to be interviewed, NA means not applicable or available in the time allocated.

I 101 Contracting Co Ltd Contractors I A & T Enterprises Contractors I Aaron Joe Tymay Industries I Adam Wall I Akari Furniture etc I Alan Blattler InterFor X Alice Janisch Sechelt Councillor X Alice Lutes Sechelt Councillor I Allan May I Alpine Recycled Products Ltd Recycled Building Supplies I Andrew Van Wersch I Andrew Van Wersch Furniture I Andy Koberwitz I Andy Koberwitz I Ann Kershaw Sechelt Councillor I Arnold Skei Sechelt Plumbing I Artwood Custom Homes Ltd. Contractors I B&B Kitchen Concepts Cabinets Bryan Harkin I Bank of Montreal I Barrie & Marian Reeves Gibsons Building Supply Timbr Mart I Ben & Alayna Josephson I Ben Josephson I Bev Nielsen Nielsen Design Consultants I Bill Davis I Bill Lasuta Bill Lasuta and Associates Ltd. I Bill Stockwell Stockwell Sand & Gravel I Blue Ox Logging Ltd. X Bob Sitter SCPI Vice Chair I Brad Boser I Brad Boser I Brent Davie & Ron Colpits Insta Glass I Brian Hawrych BC Wood Specilaties Group I Brian Willsie I Bruce & Dena Nicholby Winton Global Homes Division I Burns Matkin I Burns Matkin I Burtnick Enterprises Ltd Contractors I Cam Forrester Cam Forrester & Associates X Caroline Depatie Sunshine Coast Trails Society I Charlie Anderson Andersen Pacific Forest Products Ltd. I Chris Hall Engineer I Chris Moore ‐ Secretary Prudential Sussex Realty. I CIBC X Clark Hamilton ‐ President Clark Hamilton Enterprises I Clark Hamilton Enterprises Contractors I Coast Cable Communications Ltd. I Coast Columbia Cabinets Cabinets I Coastline Fencing James Talbot I Corona Construction Ltd Contractors I Craig Moore Remax Oceanview Realty I Creekwood Flooring I Crystal Creek Homes Contractors I Custom Craft Design Contractors I Dakota Creek Resources Sawyer Fred Gazeley I Dale Allenback Engineer X Dale Eicher Citizen I Dan Giillis I Dana Brash I Daniel Kokolu I Daniel Kokolus X Darnellda Siegers Citizen X Darren Inkster Sechelt Mayor I Dave Beauchesene Suncoast Woodcrafters Guild I Dave Clarke Canadian Overseas Log & Lumber Ltd. I Dave Tennant I Dave Tennant Woodworker I Dave Vaughan I Dave Vaughn I David Elstone I Dennis Munson I Dennis Munson I Desmond Paine Architect I Detlev Ahrendt & Marina Ahrendt Firefly Lighting




Contact Name Title


I Din Ruttlyneck I Don Ewing Prima Developments Inc X Doug MacLaren CEO Resource Training Organization I Doug Spani ‐ Treasurer Spani Development Ltd. I E & J Perry Home Svc Contractors I Eddie Dignard X Elise Rudland SCPI Director I Eric Holtz I Excelsa Enterprises Contractors I Fiedler Bros Contracting Ltd Contractors I Fred Gazeley I Fred Taylor Sechelt Councillor I Garrett Hunt Construction Contractors I Gary Cross I Gary Kelly Wood turner I Gary Kent Furniture, etc I Gibsons Building Supplies Ltd Building Supplies I Gibsons Building Supplies Ltd Building Supplies I Gibsons Building Supplies Ltd ‐ Gibsons & Sechelt I Gina Stockwell ‐ Director Stockwell Sand & Gravel X Glen Bonderud SCPI Ec.D. Chair I Heinz Tigge, SC Woodcrafters I Hoffmann Construction Contractors I Ian Jacques The Coast Reporter I Inlet Maplewood Products I Interlake Hardwoods Flooring I Island Woodcraft X Jacquie Cunliffe SCPI Asisstant I Jade Cavalier I Jade Cavalier I James Michael Klipa Engineer I James Talbot I Jan Nielsen Westwind Hardwoods Inc. I Jann Boyd, Joanne Clark I Jay Jones I Jeanne Robinson Raven's Cry Cedar Homes I Jeff Endress Canadian Tire X Jim Cleghorn Chamber of Commerce I Jim Edgar Government Agent I Jim Slakov I JMK Civil Engineering Ltd. X Jo‐Anne Frank SCPI Liaison I John Gillespie X John Henderson SCPI Chair I John Jensen I John Jensen Woodworking Cabinets, Furniture I John Milne Engineer I Julian Burtnick Burtnick Enterprises Ltd. I Keith and Brian Stephens X Keith Atkinson RPF BC First Nations Forestry Council I Keith Thirkell Sechelt Councillor I Kelly Barabash Sawyer I Ken & Lois Fuhrmann CCIS Custom Homes & Renovations I Ken Baker Forestry Innovation Investment Ltd. I Ken Birkin Azimuth Excavation I Kenith Perreur Lloyd Engineer I Kensington Cabinets I Kensington Cabinets I Kensington Cabinets Cabinets X Kevin Davie SCPI Manager I Kim Liptak Sunshine Coast Credit Union I Kim McGinnis I KMS Tools I Koen Drugmand I Kokulus Omnicraft Contractors I Kristi Swanson Swanson’s Ready‐Mix I L J Contracting Contractors I Laima van Turnhout Habitat for Humanity Sunshine Coast I Lamb's Contracting Ltd Contractors I Lance Sparling ‐ Vice President Wakefield Homes I Landwise Consultants Inc. I Lanny Matkin X Len Pakulak SCPI Past Chair I Lexa Supply Sawyers I Lloyd Engineering I Lone Wolf Forest Products I Lydia and Gary Jackson Off the Edge Bike Shop




Contact Name Title


I Mackenzie Construction Contractors I Mark & Carol McKray I Mark Carota Super Energy Efficient Developments Inc I Mark Safioles Woodworker I Martin Hug Sunshine Coast Fencing I Martini Guitars I Mary Blockberger Sunshine Coast Botanical Garden Society I Matthew Kliewer I Maurice Arduin I MG Engineering I Michael Knobloch Davis Bay Door Ltd X Michele Devlin Gibsons Chamber of Commerce I Mike Evans RE/MAX Oceanview Realty I Mike Weber Weber/McCall Electric I Mobius Architecture Architects I Mountain Marine Transportation Ltd I Nicholas Simons MLA I Nicola Kozakiewicz Architect I Northwest Contracting Contractors I P.J. Hardwoods I Pacific Home Improvements I Pacific Home Improvements Contractors I Panorama Construction Contractors I Paul and Doug Saunders Custom Carpet & Interiors I Paul Morris Paul's Paintin' Place I PDM Construction Contractors X Peter Moonen SCPI Director I Peter Sugars I Peter Sugars I Peter Treuheit I Proteus Natural Oils Cedar oil I Rainy River Cedar Sawyers I Rainy River Cedar Ltd. ‐ Brad & Dale Boser I Ralph Fraser X Ralph Fraser Citizen I Ralph W. Schilling Architects Architect I Raven Owner/Builder I RDM Designs I Richard Barrett Furniture, stairs, doors, windows I Richard Crook I Rick Hamilton I Ridge Point Contracting Contractors I Rob Infanti Green Coastal Pre‐Fab Systems Inc I Rob Milsted Building Design I Robert Mortlock I Robert van Norman Inside Passage School of Fine Cabinetmaking I Roger Bordreau Engineer I Ron Cameron ‐ Director Finishes 1st I Rona Home Centre I Rona Home Centre Building Supplies I Roy Sunstrom Coastal Cast Stone I Russ Cameron Independent Lumber Remanufacturers Association I Salish Cedar Products Ltd. Sawyers I Scotia Bank I Scott Avery Stairs, finish carpentry I Sharon Anderchek Community Futures Manager I Slakov Woodventures I Smuggler’s Cove Specialty Wood Ltd Products Anton Janze I Spani Developments Ltd. Contractors I Specialty Wood Products Building Supplies I SSC Custom Cedar Cedar X Stan Anderson SCPI Director I Stephen Edson I Stephen Hinton Architect I Stephen Hinton Architect I Sue & Bryan Kartinen I Sugar Cabinets & Millwork Cabinets, furniture, millwork I Sun Co Recycled Bldg Materials Recycled Building Supplies I Sunco Building Materials Ltd. I Sunco Civil Consulting Ltd. I Suncoast Lumber & Milling Sawyers I Sunshine Coast Building Centre Building Supplies I Sunshine Coast Eng. Ltd. I Sunshine Coast Home Building Centre I Sunshine Coast Woodcrafters ‐ Heinz Tigges I Sunshine Mobile Milling Sawyers I Susan Ferguson Sechelt Downtown Business Association




Contact Name Title


I Tasse Enterprises Ltd. Sawyer I TD Canada Trust I Terry Chow & Aaron Hamilton RF Binnie & Associates Ltd I Terry Dawe I Teryl Mullock I The Local I Thomas Dolker Sunshine Coast Forest Products Ltd X Tim Anderson SCPI Director I Timothy Clement I Timothy Clement Furniture, Chairs, other I Todd and George Blas I Tom Clelland Creek Audio Works I Tom Dolker X Tom Pinfold SCPI Director I Top Notch Hardwood Floors Floors I TR Maplewoods ‐ Tom Stanway I Trail Bay Home Hardware I Tsain Ko I Tsain‐Ko Forest Products Various products I Venture Enterprises Contractors I Versacan Construction‐ Henk deVries I W. Blake Fougère BC Forest Service I Wagman Construction Contractors I Wakefield Home Builders I Wakefield Home Builders Contractors I Walter Tripp I Warren Allen Sechelt Councillor I Wendy Shishalh CEO I West Coast Log Homes Log and timber frame I West Coast Log Homes I Will Cummer Woodworker I Windfall Resources I Windsor Plywood I Woodlatch Woodworker




AppendixII‐Acknowledgments

A number of organizations and individuals made available their expertise and time in support of this project. Most importantly, Capital EDC Economic Development Company acknowledges the assistance of the Bonderud Household, the Moonen Household, the Marshall Household and the Yeoman McDade Household for without whose support, Capital EDC Economic Development Company would not have been able to complete this assignment.

In addition, Capital EDC Economic Development Company wishes to express its appreciation to the following organizations and individuals that assisted us with their time and considerable expertise in the completion of this project:

Mr. Clark Hamilton, Coast Builders Association

Mr. Darren Inkster, Mayor, District of Sechelt

Mr. David Lasser, General Manager, Sechelt Community Projects Inc.

Mr. Glen Bonderud, Cortex Consultants Inc. and Committee Chair

Mr. Jim Cleghorn, Chair, Sunshine Coast Economic Development Task Force

Mr. John Henderson, Chair [Retired], Sechelt Community Projects Inc.

Mr. Kevin Davie, General Manager [Former], Sechelt Community Projects Inc.

Mr. Peter Moonen, Canadian Wood Council, and Committee Member

Mr. Rob Bremner, Chief Administrative Officer, District of Sechelt

Mr. Tom Pinfold, Gardner Pinfold & Associates, and Committee Member

Ms Darnelda Siegers, Coast Builders Association

Ms Linda Harris, Administrator, Sechelt Community Projects Inc.

Ms Shelley McDade, Chief Executive Officer, Sunshine Coast Community Savings and Credit Union

Ms Wendy Rockafellow, Chief Executive Officer [Former], Tsain‐Ko Corporation

Sechelt Community Projects Inc. Economic Diversification Committee




AppendixIII–DiscussionPaper

It takes a Village1 Market Position Statement 2 Identify Business Wish List 3

Create a Supportive Business Environment 4 Make the Environment Appealing 5

Overcome Barriers to Business Investment 6 Offer Incentives, not the kind you think 7

Assemble the Creative 8 Deliver the Story 9

Assemble the Package 10 Being Site Specific 11

Generate Leads 12 Prospecting 13

Personal Visits 14 The Familiarization Tour 15

Make the Pitch 16 Close the Deal 17

The Move 18 The Start 19

What to expect when you’re expecting 20 Repeat the Process 21

Operating Plan

Business Recruitment | Sunshine Coast Community Forest Focusing on Wood and Forest Value

Presented By

Patrick Nelson Marshall Capital EDC Economic Development Company

www.capitaledc.com

May 4th 2011 Sechelt, British Columbia, Pacific Region, CANADA

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Outcomes from the Forest Focus Group process will include joint marketing and use of the Sunshine Coast Forests, collaboration on establishing the use of the Forest for non‐timber values like organized recreation, free access recreation, another product for destination marketing for the travel industry, event management and collaboration for botanical interests and use of non‐wood related products from the Forest and to respond to expressions of interest in investment resulting in new construction and jobs associated with the Retail and Service Commercial activities associated with the Forest.

B. Pick Teams

From the participants in the Focus Groups, establish an Away Team to present the Wood and Forest opportunities and a Home Team to build on business retention, expansion and to host prospects on familiarization tours, events and eventual relocation.

Home Team – Is responsible for coordinating activities inside the region with respect to facilitating new activities designed to raise the profile of the Wood and Forest Values associated with the community forest. This means developing the narrative, tools, products and opportunities to host people interested in using the Forest and celebrating the value of Wood.

Away Team – is responsible for coordinating activities with respect to presenting offers to buy unique wood products created on the Sunshine Coast and to communicate the value of Forest access for recreational and outdoor adventures. This will ultimately address deficiencies in hospitality and accommodation services associated with larger groups of people and feathering activities on the shoulders of the traditional 90 day summer season.

C. Establish Metrics

In order to report progress to the community every 90 days, the Focus Groups and Teams need to establish a simple set of measures to demonstrate tangible and intangible results of this effort.

1 It Takes a Village

Establish Your Business Recruitment Team. But what you really want is every taxpayer and every citizen telling the same story to their extended family and associates so that you get the full six degrees of separation working for you.

To begin the recruitment process, a proactive business recruitment team needs to be assembled. This team should bring a clear and realistic understanding of the market analysis, have skills in economic development and real estate, and have an ability to sell and follow through. Training for the team may be necessary. A team of five to seven participants could include:

Established (and retired) business owners;

Local real estate professionals;

Current building owners who are interested in exploring various uses for their property;

Bankers;

Local development organization representatives;

The Mayor, Regional Chair, Chief Councillor, Elected officials, CAO’s ; and

Chamber of commerce and visitor bureau directors.

The team will help serve as a management entity for recruitment efforts, focusing on those properties and areas that are critical for the economic success of the area. Through the process, the team will coordinate efforts with local real estate professionals.




On the southern Sunshine Coast, there are two processes at work:

The Public Sector – Recently the District of Sechelt, Sunshine Coast Regional District Sechelt Indian Band and the Village of Gibson’s met to establish a Task Force of Chief Administrative Officers to determine the best Regional delivery model for economic development. In addition the Mayor of Sechelt has established “Mayors Task Force on Economic Development.

The Private Sector – The Coast Community‐Association of Builders, The Sechelt Chamber of Commerce, Tsain‐Ko Forestry Development Corporation, The Gibson’s and District Chamber of Commerce, The Real Estate Board of Greater Vancouver all have elements of the formula and resources required to engage in business recruitment.

In order for the Sechelt Community Forest Corporation to assess the interest in a community approach to business recruitment, the Corporation, with assistance from these business groups in identifying likely participants, needs to go back to the community and follow on from the “Community Forest Forum” held in 2008. Another study was completed by Dan Gilles that should be revisited as a starting point. Add to that the Inbound Investment Strategy and the Lionsgate Strategy from 2002 and the area is well served by studies.

2MarketPositionStatement

For a recruitment program to be successful, the team must be ready to articulate a clear market position statement for the area.

A market position statement should characterize the type of retail mix, the shopping environment, and the target customer market. The statement distinguishes your area from surrounding areas. Often, a community’s market position statement will serve as background for identifying the types of businesses that could be recruited.

ThepositionstatementforWoodandForestValuesontheSunshineCoastmustbederivedfromthediscussionattheFocusGroupsifitistohaveanyauthenticity.Anexampleofastatementmightsay:

“ThepeopleoftheSunshineCoastvaluepeoplewholivefor,workandplaywithwood”.

Onceestablished,theFocusGroupwoulddeterminewhattheachievementofthisEndStatementorpositionstatementwouldlooklikewhenaccomplished.Fromthat,metricsareestablishedtomeasurethestapestowardsachievementofthisstatement.

3IdentifyBusinessWishList

A wish list of potential businesses should be developed by the focus group. These potential businesses should complement and strengthen the existing businesses and reflect the market position and vision statements. Realistic annual recruitment goals (number of businesses on the wish list) should be set.

To identify appropriate business candidates (micro sawmills, custom specialty wood, veneer mill) for your community, first analyze your business deficits (or opportunities) by specific category. Those categories that make market sense are then analyzed to make sure they fit into the niche, space utilization (specifically clustering) and marketing (specifically target market). Use the following criteria in finalizing your wish list:

Is there appropriate space in the area for this type of business?

Yes, there is. SCPI requires property profiles from each of the four local jurisdiction’s so that the prospects are clearly identified. Will it complement existing businesses?




Each property must be identified for its highest and best use, including what is considered to be complimentary. Each of the four jurisdictions must be requested to provide the GIS material on one page area profiles with an overview location map, fit to the Letter sized stationery in a pdf format. Will it serve targeted market segments?

There will be distinct business uses derived from the wood discussion that relate to harvesting, manufacturing and more retail, commercial, non‐government uses related to Forest values. Target markets will be identified at the focus group sessions. Economic Developers can proscribe the target markets; however, this top down approach often alienates and disconnects the focus group participants when the Corporation requires their ownership of the outcome. Does it fill an important gap in the business mix?

Today, there are few, if any business clusters that have been assembled or pursued on the south Sunshine Coast. Many have been identified, but few have been actually developed around an implementation plan as if processed in this document. Will the business strengthen an existing cluster of businesses?

The dominant sector in this economic region is the effect of transfer payments in terms of old age security, retirement and social service payments pegged at 60%. Introducing the Wood cluster will have a direct impact in terms of sustaining high paying production, design and development jobs in the region. The Forest value discussion is bound to influence users of outdoor recreational, cultural and sport activities which helps build the destination tourism component of the economy. Although it is noted that there is a lack of large accommodation and hospitality properties located in the region at this time. Was this business category identified as important in local consumer research?

Both the Wood and Forest sectors of the economy have long been identified as targets for development. Does market demand and supply data support the need for this types of business?

In the case of Wood Harvest, 996% of the wood harvested is shipped away from the region, lacking the required breakdown and utilization businesses. For the Forest side, there are no indicators of supply and demand at this time, in order to make an informed decision. Does the business fit it with the market position and vision statements?

This question will be answered having hosted the focus groups. And can only be answered then Informed sources from industry suggest that the region will support the following investments: ‐ Seeding Entrepreneurs: Offer a bursary sufficient to attend UBC Centre for Advanced Wood

Processing (6 months), followed by a grant of $10,000 for starting a wood related business

employing two or more people. The Community Forest Corporation would then monitor and

provide mentorship to the new businesses as a support group.

‐ Sales Support: Encourage more businesses to pursue the specialized wood furniture and

cabinetry plants with appropriate design and marketing expertise. This would take advantage

of the concentration of wood artisans in the region and enable the extension of invitations to

specialty marketers to come into the region to source product quarterly.

‐ Forest Guides: Assist in the development on a Region Specific Outdoor Recreation curriculum

with Capilano University using the Community Forest Office as the field classroom.

‐ Fat Tire Haven: Working wth the Outdoor Adventure Destination Marketers and off‐road

cycling community, develop the short and long term plan that results in the Sunshine Coast

Trail network being sanctioned by World Class organizations as a Bike and Hike destination. This

may involve collaborating with Whistler.

‐ Artisan Boundaries – Encourage the establishment of a Fence Plant using red and yellow cedar

in the same spirit as the Tsain‐Ko operation. [$1 million]




‐ Red Roof Plant – Encourage the investment in a Truss Plant that would produce 1 to 2 home

roof systems a day using Spruce, Pine and Fir [SPF].

‐ Primary Breakdown – Using the Powell River model, recruit an operator to establish a small

flexible sawmill for all sizes and grades of logs, with a small dry kiln that may have extra

capacity to supply kiln services to others.

‐ Dry Space – Collocate a custom dry kiln operation for all species and grades of wood. This

investment ranges from $400,000 to $2 million.

‐ Hew Saw – The Corporation will approach the new owners of Howe Sound Pulp and Paper, as

well as the other operators, to determine who best to invite into the region to construct and

operate a small sawmill specializing in small logs. [~$5 million]

‐ Thin Veneer – The Corporation will approach Coastland Wood Industries to determine the

feasibility of a Veneer Mill [$30 million].

Additional Investments can be pursued once the Focus Groups have been started on a regular basis so that existing businesses can identify what they need in terms of support to be retained and expand in the existing market. In order to engage in recruitment of new investment, the existing business community needs to commit to the process of identifying priorities and participating in the offer.

4CreateaSupportiveBusinessEnvironment

Before actual recruitment can begin, the people that step forward from the Focus Groups to work on these files need to make sure that the area presents itself as an inviting place to do business. The region must present a quality business environment in order to attract viable businesses and ensure the successful operation of businesses within the Wood and Forest Clusters. It must appeal to the rational investor who is seeking to minimize risk and maximize financial return. Often, this supportive business environment will include incentives to help “level the playing field” with other centers including those developed on the edge of town.

In this regions case, there are four distinct jurisdictions with separate rules of engagement. These are to be clearly illustrated in a simple package that forms a part of “The Offer”. This means more than generic printed matter covering the community’s vision of itself, but rather, a third‐party validation of those values as discerned by the Focus Groups.

As of this date, Capital EDC Economic Development Company could not locate a valid recruitment package or Offer package for Sechelt. It needs to be constructed and coordinated with existing reception offices that include the Visitor Centre, Volunteer Centre, Taxi Companies, Real Estate Offices and Local Government and First Nation offices.

The Focus Groups will identify the issues and opportunities associated with business retention, expansion and recruitment.

5MaketheEnvironmentAppealing

To grow existing business and recruit new businesses, a community must first make its business area visibly active, attractive, convenient and safe. This is often more difficult for non‐shopping center locations including downtowns as they typically do not operate under a central management. Before the recruitment process begins, work with existing business operators and city officials to ensure:

An aesthetically pleasing commercial and industrial environment;

Safe, Secure and accessible industrial and commercial properties are available ;

Adequate and conveniently located parking and transportation services; and




High business operational standards and service which project a quality, unified and consistent

image for the area.

Using the Focus Group process: Help the region understand how it is viewed by outsiders. Also, refer to findings from local consumer attitudes research. Capital EDC Economic Development Company has blind shopped the region for the required resources, but will defer to the conversation within the Wood and Forest focus groups.

6OvercomeBarrierstoBusinessInvestmentintheArea

Many retail and service businesses choose "edge" locations on the outside of town because such locations have proven successful and expansions are easy to replicate. Downtown and other in‐town commercial areas need to recognize and overcome barriers to business investment in their areas. Barriers often include:

Higher land costs;

More title problems (because of their history, properties often present complex title issues);

Permitting that is more complex and time‐consuming;

Zoning that may be more restrictive;

Site preparation (for new construction) that is more complex;

Construction and renovations that are more complex;

Building footprints that are typically smaller; and

Parking that is more restrictive.

These factors need to be assessed as part of the Focus Group process. The Corporation needs to ask its existing businesses and peers to identify barriers and develop a coordinated response to issues and weaknesses.

The Corporation and the leadership group should understand these barriers, both perceived and real, and work with business and community leaders to minimize them. Sometimes creative incentives can be developed to make the area more competitive from a business investment perspective.

7OfferIncentives,notthekindyouthink

It is also important that the Corporation fully understand what the community can to offer the prospective business. Incentives might include:

Technical assistance including market and feasibility analysis, business plan development,

governmental regulations, advertising and physical design.

These resources are available from institutions and volunteers in the community. The Corporation needs a Task Group arising from the Forums to provide lists of people prepared to provide support in these areas.

Negotiation and leasing of space if the prospect is not working with a broker or not familiar

with the area;

There needs to be an orientation to the ICI Real Estate Offerings so that both practitioners and the public understand what is on offer and what uses are best suited to the available land. Again, another task suited to a group coming out of the Focus Group sessions.

Financing of building improvements, facades, displays, fixtures, inventory and start‐up costs

including a low‐interest loan pool;

This is an area that should be discussed with the lending community and Coast Community‐Builders Association to determine if this approach is feasible.

Counseling with local financial institutions and assistance in completing loan applications;




Another subject for which a team of volunteers need to be recruited or at least a referral process to the people best suited to put packages together.

Financing options and incentives appealing to developers such as low‐interest loan;

The only option here is if Local Government and First Nations own land with which they can engage in non‐conventional property acquisition processes or staged sale closing.

Area wide image and marketing programs and advertising and promotion assistance for

individual firms;

There are at least five separate marketing programs being discussed currently. Clearly, the Woof and Forest Focus Group strategies will require an independent labeling program as a sub of an overarching regional positioning strategy. The Corporation and its peer group operating in the region are best suited to advise on what that positioning narrative is comprised of.

An effective business to business networking system;

The Focus Groups bring together like minded individuals from the private sector to collaborate on short bursts of activity designed to benefit the community.

Private development partnerships made up of local investors who might develop, own and

operate a needed business;

The Coast Community‐Builders Association is one of the more advanced organizations Capital EDC has come across. It already has a program policy identified in this regard and the Corporation should seek ways of supporting and endorsing its approach; and;

Business incubator(s) to help establish new businesses at a reasonable cost and provide them

with space and common services.

This is always a challenge in smaller communities as no one wants to compete with private

property owners. However, the Focus Groups may identify orphaned public property that is

surplus to public needs. The Kitimat Valley Institute and Campbell River’s Enterprise Centre are

great examples of old infrastructure put to new uses.

Using the Focus Group process: Identify locally valued business incentives.

8AssembletheCreative

Attractive recruitment and marketing materials should be developed to convey the market potential of the business area. Business recruitment materials must help convince a business operator that this region is unique and that it offers a competitive edge over other locations.

Recent efforts to communicate unique values in the region are of a high quality. As the Focus Group conducts its conversation, creative opportunities unique to conveying the Wood and Forest opportunities are expected to come out of the Focus Group process.

9Deliveryourstory

There is no evidence of market analysis data available to help business operators evaluate the potential for their venture. When developing marketing materials, provide only relevant information to avoid information overload. Consider the following in the Wood and Forest packages:

Letter of introduction including compelling reasons why the area makes economic sense for

them;

General information and photos of the community highlighting its assets;

Market position and vision statements;

Wish list of new businesses supported by market demand and supply data;

New developments demonstrating investment downtown;

Information on past openings and closings of businesses;




Trade area geographic definition and demographic and lifestyle data;

Trade area economic data including actual and potential sales data if available;

Nonresident consumer data (including daytime population and tourism visitation);

Descriptions of target market segments served;

Major employers and institutions;

Vehicle and pedestrian traffic volume;

Mix of existing retail, service, dining, housing, office and lodging in the area ;

Press coverage and testimonials highlighting success stories;

Promotional calendar; and

Summary of incentives and other business assistance available in the business area.

Using the Focus Group process: Summarize applicable data and recommendations from assembled.

10AssemblethePackage

Graphs and maps are particularly effective ways to describe the region, the local area, retail competition, and development trends. For the business area and trade area, include:

Property schedules from the RD, the two urban municipalities and the Sechelt Indian Band;

Current area vacancy map;

Business mix and clustering map displaying information on all area buildings;

Major employers, institutions and points of interest map of area;

Traffic volume map;

Trade area maps defined by customer origin and drive‐times; and

Consumer spending demand and supply maps.

When targeting prospects, remember that not all businesses have the same requirements. A portable saw mill typically requires a different market than an Outdoor Guide. Communities should customize information to fit the needs of the particular prospect and collaborate on what the common package for the Sunshine Coast looks like. The “look and feel’ should not reflect government design standards, but should be customized to suit the industry targeted for sicussion.

11BeingSiteSpecific

In addition to market data, information on specific buildings is required. This information includes:

Maps and photos describing the location, building and it history;

Complementary businesses and business clusters nearby;

Sales and rent per square foot (with comparison market data);

Available commercial and residential space and floor plan;

Operating expenses including utility rates and taxes;

Current tenants and how the building could be optimally reused; and

Property owner or other contact for more information.

When completed, recruitment and marketing materials should be assembled in an attractive

packet and offered online. Quality content, graphics and formatting are required.

Using the Market Analysis: To help summarize building specific data.

The Greater Vancouver Real Estate Board advises that this information is limited for the region, however, the community of realtors should be approached by the Corporation to advise on the contents of this package. The Board has already expressed an interest in working with the Corporation at its April Luncheon.

12GenerateLeads




The Corporations next responsibility is to find appropriate businesses that might be interested in a site in the market area or need new space to expand. Leads can be broken town into four general categories:

Existing Businesses within or near the business area – Often the best leads are found near

home. Leads might include existing businesses seeking more space or a better location in the

business region. The Focus Groups outcomes and ongoing conversations and personal contacts

of the recruitment team, chamber of commerce and other economic development

professionals can help identify these leads. The Corporation should offer a non‐disclosure to

provide certainty in these private discussions. It is in a unique position to bridge the initial

dialogue between the private operator and government institutions.

Emerging Entrepreneurs ‐ Downtowns and business area s are often attractive to independent

businesses. Accordingly, leads might include home‐based or garage‐based businesses seeking

more space and a convenient location for their customers. These leads might include managers

of existing businesses wishing to go into business on their own. Commercial lenders, business

schools, Community Futures counselors, Downtown BIA’s, Service Corps of Retired Executives

(SCORE), Rotary Club International (PROBUS), Chamber of Commerce and other public or

private small business professionals should be asked to help identify these leads and to engage

in a common protocol agreement for being accountable for fulfilling the needs of existing and

prospective businesses.

Existing Local or Regional Businesses ‐ Local or regional businesses, particularly those that have

multiple locations and are ready to expand, are often excellent prospects. These business

operators typically have a good knowledge of the market area, and may already have multiple

stores. They are often interested in expansion as a way to improve their penetration of the

market. These leads can be identified through the Focus Group process knowledge of the

business mix in other communities in the region and information collected from local sources.

In addition, realtors, commercial brokers, sales representatives and suppliers that work within

the region must be enlisted in the cause.

National Chains and Corporate Operations ‐ National chains and public|private corporations

must be canvassed. It is important to be realistic about the kinds of chains that might be

interested in a small community as their market, operations size and site requirements may

preclude them from considering the type of land governments and the market have available.

The best source of Leads in this category is derived from personal contacts. The Corporation

has one of the best volunteer Boards for these activities as their networks are extensive. In

addition, leads will also come from commercial brokers, trade shows, “deal making forums,”

and conferences such as those already identified in the Lionsgate Strategy and the Warner

Investment Attraction Strategy.

Once leads have been identified, an industrial and commercial assessment checklist needs to be developed by the Corporation to ensure quality standards for prospects and to make sure the business would fit the market. The checklist could be completed by a Corporation volunteer member on a reconnaissance visit to the business. It might include:

Business category (type);




Target markets;

Businesses’ location requirements;

Image;

Inventory and selection;

Pricing;

Presentation;

Exterior appearance;

Interior décor, lighting and fixtures;

Service; and

Traffic generated.

The Corporation needs to establish a “Home Team” and an “Away Team”. The Focus Groups should be assessed for appropriate volunteers to make up the Home Team whose sole purpose is to receive people into the community. Clearly, in Sechelt’s case, the Volunteer Centre, Community Foundation and the Visitor Centre have the right combination of talents, with some training, to accomplish this function. The Away Team has a different sales oriented skill set. This experience is about low key, high quality people that can tell the regions story using simple tools and personal professional candour to communicate the opportunities. The Corporation will coordinate the Home and Away Teams such that offers are coordinated to match the resources available. Person to Person communications are far and away more productive than ad or advertising placement. These structured marketing efforts are high cost producing low results. A Themed web site combined with a simple narrative and coordinated volunteers often produces the biggest results.

13Prospecting

The Corporation must now focus on a personalized sales effort that conveys a message that the area is a good location for expansion or new business development. Efforts to personally communicate and then follow up with potential business are essential to the success of a recruitment effort. Presented below is a sequence of steps to reach potential business owners or developers.

Once the communications program has been set, including coordinated social media using a vast network of citizens as correspondents, the Corporation can commence the task of following up leads and challenges derived from the Focus Group, enlisting Focus Group participants as team members, and start the process of following the step‐by‐step process of ground trothing challenges to business retention and expansion, while communicating opportunities associated with both the Wood and Forest clusters of businesses and Non‐government organizations. This will then inform government process related to business interface operations like building inspection, planning and development processes, while at the same time provide the elected people with a team of coordinated people to work with.

14PersonalVisits

After the initial contacts are made a letter of introduction should follow to set up an appointment for a personal visit by someone from the Corporation or its volunteer Away Team. The purpose of the appointment is to explain why your community is interested in their business. Explain why their business would be profitable and what incentives might be available. Provide recruitment and marketing materials and any other information to demonstrate the pro‐investment Wood and Forest character of Region. Offer an invitation to the business operator to visit your community.




Each quarter, there are community events around which business expansion and recruitment candidates can be hosted in small, one‐to‐one and group environments. Consider buying two or three tables at the next Botanical or Community Foundation fund raiser as the means for establishing the personal relationships required to move files forward.

Coordination between the Away Team and the Home Team is critical. Here is where Mayors, Electoral Area Directors, Chairs and Chief Councilors combine forces with Chamber and Rotary Presidents, to put the best and united face of the region forward. There is no room for local rivalry and continued seemingly harmless rumors or innuendo are not appropriate.

15TheFAM‐iliarizationTourorthe“QuadCab”

It is the Home Team’s job to persuade the prospective business or developer that your region has a distinct advantage over other locations. The site visit is a critical opportunity to persuade the business owner to invest in your area. Prospects should be personally invited to tour the community. The tour (previewed and rehearsed time and again ahead of time) should include stops at possible business sites, competitive business areas, residential neighborhoods, employment centers and Government Offices.

Set up visits with key local merchants. Lunch or dinner should be included with selected business operators and public officials.

In Campbell River, the “Quad Cab” tour was pioneered. The economic development receptionist, would pick up a brand new demonstration Dodge Quad Cab with a hemi and give the tour, dropping the prospect off at the Mayor’s office for a visit.

Throughout the prospect’s visit, the Home Team must be prepared to answer questions such as why similar businesses have closed, the history of adjoining businesses next to prospective sites, and how to contact local landlords. Local property owners, lenders, government officials, and other businesses can be part of this welcoming and persuasive effort.

After the visit, it is important that thank you letters be sent from various community leaders including the government leaders and selected business representatives. Mail or fax articles and publicity about community events and businesses during the following weeks. Deliver a basket of merchandise unique to your region. Finally, make sure the Away Team is prepared to promptly answer follow up information requests in a prompt and professional manner.

16MakethePitch

A leader on the Away Team should close the deal by selling the merits of locating in the business area. Remind the prospect that your area is looking for a business with their characteristics. Practice effective sales presentation skills and focus on key selling points of interest to the prospect:

Key market data (such as a population density surrounding the area );

Findings from the analysis of demand and supply in the particular business category;

Expected sales per square foot and reasons why they would be successful there;

Examples of comparable businesses in the area that have prospered; and

Why the area is a better place to do business.

17ClosetheDeal

The Away Team continues to stay in contact with the prospect. If the prospect is interested, the Corporation will follow‐up immediately with an action plan and necessary assistance (however, will not attempt to broker the property, but rather, engage in an informed referral). If only marginally interested, the designated rep from the Away Team will call the prospect again in six weeks. If not interested at this time, include the prospect on your mailing list of correspondent businesses.




18TheMove

There will be some bumps and setbacks. Don’t forget, moving is one of those traumatic times in people’s lives. The Home Team will need to script all elements required for those prospects that have been converted into suspects and finally new business into the community.

It is the sole responsibility of the Home Team to develop the steps, coordinate resources and ensure that the business expansion or entry into the region is well managed and appropriate. This process does not end with a ribbon cutting. The Corporation must check in with its businesses a minimum of twice annually. Business GPS [growth, planning and succession] must be included in this process.

19TheStart

Once the decision to expand or locate in the region has been made, they must be welcomed and supported as are existing businesses. Marketing the new business and helping the owners network with others in the area is especially important in its early months of operation. Ongoing advocacy and follow‐up will be essential. Again, this is another task for the Home Team.

20Whattoexpectwhenyou’reexpecting

There is no Handbook or Guide to what you need to do to keep your business recruited. In fact, there will be no warnings other than if the Founder or Owner has a less than perfect experience, you will be the last to know, so stay on top of the move and check in with them at exceedingly longer terms.

21RepeattheProcess

Patrick Nelson Marshall Economic Developer Capital EDC Economic Development Company




AppendixIV–SurveyResults


11/15/2011

Sechet Community Projects Inc. 2011 1

Sechelt Community Projects Inc. November 2011 Stakeholder EditionPatrick Nelson Marshall BES SURP | Economic Developer

This Report illustrates the views ofthe Sunshine CoastCommunity ForestStakeholders at theThird Quarter 2011

STAKEHOLDERSVIEWS AND ATTRIBUTES


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Stakeholder View of Regional Image

Stakeholder views of their own community and region may differ. It is generally seen as a positive image with some reservation.

How Outsiders view the Region

Their experience with outsiders perception of the Region may also be different.


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Effective Economic Development

Clearly, the stability of existing business is a priority but other influences factor in as important, like providing opportunities for families.

Personal Lens on Subjects

Stakeholders should have different lenses and sensitivities so that there is balance.


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Expansion and Recruitment Targets

Each Sector exponentially effects the local economy from lowest at Government to highest in the Manufacturing segment.

The Sun Coast Three Greatest Strengths

Proximity, Affordability | Entrepreneurs, and Recreational Opportunities


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Sun Coast Biggest Challenges

Availability of well paid jobs, Worker Retention, Local Government Leadership and citizen attitude.

Top Three Economic Development Subjects

Supporting Existing Business, Growth of Small Business and Recruitment of new employers.


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Local Government should spend

Opinions are consistent across the profile. Strong Opinions lean towards More Employment Opportunities and Other things than those listed.

Stakeholders Sectoral History

Where you are employed influences your view of the subjects before the Stakeholders.


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Stakeholders Length of Service

How long you have been operating in any given position may indicate an ability to change or not.

Stakeholders Accountability at Work

The level accountability you are used to may be an indicator of how much risk you are willing to take.


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Stakeholder Gender

Gender Balance is sometime a factor in decision making style and management.

Sun Coast Citizen

Sometimes, the length of residency influences your ability to see the Forest.


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Stakeholder Origins

In other cases, bringing fresh eyes to a community can provide the benefit of a new view on old issues and challenges.

You can Work anywhere

The mobility of Stakeholders can be a positive influence over decision making.


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Regionalism

Sometimes, the place where you were born shapes your view of the world.

Stakeholder Business Class

While we do live in a classless society, sometimes, your root experience is an influencer.


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Stakeholder Achievement

Balancing experiences is important to stakeholder dynamics.

Stakeholder Skill Sets

Determining where you are weakest and backfilling skills is important to the recruiting process.


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Stakeholder Cohorts

Balancing experience and generational perspectives is important.

Stakeholder Financial Responsibility


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Stakeholder Diversity

Speaking other languages is a helpful skill set when engaged in business development.

THE TOP 10 LIST &NEED FOR STRATEGIC FOCUS

This section is about whatthe Peer group sees asRegional priorities in Q3


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Ernst Young Top 10 Issues List

What the world sees as Top priorities are not necessarily a factor locally.

Our Region Needs Attention

Sometimes these graphs speak for themselves.


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BOARD PEERSBUSINESS ACTIVITY Q3

This section is aboutthe Peer Groups Business Activity

Your Peers Product Mix Change

This illustrates innovation and market dynamics.


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Your Peers Product Mix Change >18 Months

In the next 18 months, a couple of businesses are introducing new products which is a positive sign.

Your Peers Special Niche

There is not a high incidence of specialization amongst the group.


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Your Peers Business Sales Turnover

This indicates an average group of businesses.

Your Peers Business Trade Area

Indicates a slight diversity in your peer group.


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Your Peers Customer Frequency

This is a poor sample so no real information derived from this question.

Your Peer Business Sales Q3

Indicates a sense of strong change and increasing.


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Your Peer Average Sales

The perception is that sales are on average, stable, with one indication of increases.

Your Peer Type of Customer

Dominance of one‐to‐one sales is higher risk of rapid change. Lack of dependence on Government sales is a positive attribute.


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Your Peer Customer Age Cohorts

Not enough data to give a clear picture. If there was, there are clear gaps that would indicate lack of balance in perspectives.

Your Peer Estimated Incomes

Not enough data to give a clear indication.


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Your Peer Marketing Sales Tools

Not a lot of diversity of tools here which is useful when planning for the Sun Coast Wood Campaign.

Your Peer Expansion Plans

Not enough responses to determine a strong pattern here.


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Peer New Location Plans

No movement here.

STAKEHOLDER VIEWS ON REGIONAL WORKFORCE


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Quality of Workforce

Views are moderate and non committal on this subject.

Head of Household

There are a variety of perceptions on this subject.


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Workforce Demand

Not a big enough indication to warrant a detailed workforce labour market assessment.

Unfilled Employment Positions

Not a big enough indication to warrant specific recruiting.


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Imported Workforce

Not a big enough indication to warrant detailed study and response.

Change in Workforce

Would have expected a stronger indication of awareness of change due to issues around succession and ageing workforce.


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Provision of Benefits

Interesting spread of experience on this subject.

Provision of Benefits

Another interesting indicator of experience with benefits.


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Workforce Training Provisions

Strong diversity of experience here.

Investment in Training

Not a strong indication for this subject.


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Workforce Initiatives

Diversity of experience indicated here.

REGIONAL CHANGE

This section focuses on

expectations of change


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Are Changes Expected

Somewhat conflicting view of the near term.

Attitude towards doing business

No change here.


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Are there Businesses needed in the Region?

Not so much.

Regulatory Barriers

Some indications identified, but not a major issue amongst the group.


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Regulatory Reprieve

None anticipated here.

TECHNOLOGY TALK

This section is about the

Influence of technologyon the peer group.


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Emerging Technology

None anticipated. Some would think of the passing of social media and the beginning of the mobility era.

Opportunities with Technology

Not a strong enough indicator to warrant detailed study.


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Use of Technology

Very diverse use of technology within the peer group.

Investment in Technology

Somewhat average.


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Regional Technology Infrastructure

Adequate.

MANAGEMENT TEAM DYNAMICS

This section is about the

Peer groups businessmanagement team


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<18 Months Change in Leadership

Not a strong indication of change.

Ownership Involvement

Not a strong enough response for analysis.


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Top Performers

Not strong enough to indicate a pattern.

Advertising Budget

It would be difficult to ask this group to contribute to the Sun Coast Wood Campaign.


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Community Engagement

There is a likelihood that this group would contribute to the Sun Coast Wood Campaign.

Collaboration

Tends to indicate that the group does not necessarily play well with others.


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Supplier Relationships

Not much opportunity to introduce new ideas as the relationships, while stable, are not introducing new players who might be more inclined to participate in a community driven campaign.

WE APPRECIATE YOURCONTINUED SUPPORT

End of Survey ResultsThird Quarter 2011




AppendixV–FocusGroupResults

It was recommended that the reporter consult with the operators of www.voiceonthecoast.com and www.bigpacific.org on aspects of building communities on the Sun Coast.

The region is amongst the top ten dependent on residential tax base estimated to be above 93% which is not sustainable.

There needs to be an effort to reduce the dependency on retirement income by building income from employment.

Media personality Bill Good is a part‐time resident of the region and an avid supporter of conservation campaigners that apply global preservation agendas to the local areas without taking into consideration the fact that as citizens, they do have a say in what happens, unlike corrupt or some developing countries. Although, they would debate that as well.

The draft sustainability plan for the regional district is lacking business literacy or applications. There is no reference to sustainable harvesting practices by the Community Forest organization.

One of the respondents was a retiree from the aerospace industry applying personal skills to a number of community organizations. It was recognized that there is a significant organizational skill set resident in both the full‐time and part‐time residents whose talents could be applied to wood and forest community of users.

It was reported that there is frustration in the community at the lack of action with respect to building some community assets and leadership in general. The subject of the Airport arose in terms of its lack of facility and development.

One participant acknowledged that when they first arrived, the region showed prospects of becoming a Carmel by‐the‐sea or La Jolla, the jewel of California. Today, years later, the community has not demonstrated the ability to work together.

Challenges include a reference to alleged unspecific “side deals” in Victoria, Howe Sound Pulp and Paper survivability, declining enrollment and the out‐migration of young adults, too many unsold homes and too many realtors chasing too few buyers.

www.kenanmackenzie.com was identified as an involved realtor.

There is limited supported from the Greater Vancouver Real Estate Board in terms of leading industrial, commercial and institutional promotion or recruitment.

The 100 acres of vacant industrial land was identified as a prospective development site however, the representative contact is a non‐resident and there is no real effort to promote the site.

The Pender Harbour community was held up as a coordinated neighbourhood, but they tend not to “play well with others.”

There was speculation that the market on the lower coast was too small to support a full time Truss Plant. A couple of efforts collapsed and so Trusses are imported from Vancouver Island over Metro Vancouver suppliers.

Kensington Cabinets www.kensingtoncabinets.com was held up as a great example of a leader in the regions wood community and they are just developing a new showroom on Field Road.

A Dry Kiln was identified as an investment that would be welcomed in the region and would serve as an investment leverage that would attract the attention of artisan and commercial producers.

There needs to be a way to engage business in participating. The Chambers don’t appear to work together on common opportunities. Maybe this subject could be one of the first.

The region is perceived as an artisan community driven by local events throughout the year like the recently launched art crawl, the Pender Jazz Festival and the writer’s festival. These should feature prominently in the recruitment strategy and used in the retention and expansion strategies as authentic area products.




There is a need for a regional theatre, event and meeting centre as well as a number of seniors amenities. However, there is no industry to pay for them and the residents will not support referenda for local public spending. So the community and region is stymied.

These facilities would support investments like Rock Water Secret Cove Resort www.rockwatersecretcoveresort.com .

The Proximity to Squamish, Whistler, Metro Vancouver, Powell River, Desolation Sound and Vancouver Island is the asset that people appreciate in the region.

The wood industry on the Sun Coast is a “Pulp” Culture and so the value proposition for solid wood is not as strong as it might otherwise be as is the case in the Interior Regions of British Columbia.

Proach Models is another example of a regional secret that should be promoted www.spacemodel.com .

Elon Musk, the co‐founder of PayPal and Tesla Motors was also mentioned in the context of a community builder with connections to the region.

There must be an opportunity to build and supply manufactured homes to Japan. There was also a company working with the Sechelt First Nations in supply homes to the Yukon.

The Target Marine file was a good example of why business investment will be conducted well below public radar and there will be a reluctance to consider the community.

Other opportunities include the Capilano University Nursing program and medical tourism associated with St. Mary’s Hospital.

The regional ambassadors program that supports people on the ferries was identified as a worthy investment for promotional reasons.

There is an Outdoor Education niche at Capilano University in Sechelt. This program is exclusive and can be used as an enterprise centre for the development of Forest use values. There is a proposal before SCPI for an investment designed to develop this sector in the region. There is also an existing business community of interest around this subject that is ready for support from the Community Forest organization.

The Community Foundation approved a small investment in the recent TEDX event before many of the people realized the positive implications of having this event in the region. The theme was the Nature of Creativity and the results are posted at www.tedxsechelt.ca .

There are few, if any Log Graders on the coast. It is a labour shortage and an art that is not being sustained.

The Gibsons Chamber supports travel ambassadors on BC Ferries during peak travel season. This initiative should be supported and could be expanded to include year round reception for prospective investors.

The Trails organization works with the B&B Association, Chambers and others to promote the region as backyard to Whistler. This includes the 2 day long bike race, sun coaster race, sprokids and th3e prospects of a sea to sky outdoor education school.

The VOICE group was initiated by a number of young adults to focus attention on the need to retain young people on the coast. Silas White, Chair of the School District also supports this initiative.

The Labour Council, Jim Hood should be included in all efforts.

BC Parks no longer have the staff or resources to maintain provincial parks in the region.

SCPI donated wood to park development in Gibsons.

Events to plan around include: August Written Arts Festival, October Arts Crawl, Pender Jazz Festival, Long Board Pender in May, April Fools Run. There is little or no collaboration between outdoor outfitters and retailers to support events throughout the year.

Families want homes. No work, no house. CCBA is developing a strategic plan along the lines of better together, imagine.




Watershed issues cause fear that there won’t be any community forest harvest for 25 years. There should be an effort to support Hidden Grove as a demonstration of the history and environmental context of the community forest.

Unfortunately, SCPI will have to set aside areas that are ready to cut that are invisible and focus on cut along the urban interface which will raise greater awareness of the community forest.

The community foundation would be a great partner for SCPI to work with. One Coast, One Climate.

Sailor Soils, working with SIB, would be an easy business to support by making it easy for them to get waste residual from community forest to contribute to soil recipe.

The Community Forest Association has a new web site to connect buyers and sellers of solid wood. The same should be done for all local wood products and forest values.

sctrails.ca should be supported as a means of opening the community forest to all users.

BC Stumpage should be set aside for reinvestment into affected communities.

SCPI needs to focus on 1 investment inside the region, 2. Exporting products and 3. Education.

End of Notes




AppendixVI–RawLogExportsExplanation

We should not be talking about banning log exports, we should be talking about how best to manage and regulate them.

Vancouver, September 26, 2011—There has been a longstanding debate about log exports and many people continue to insist that exporting logs means we are exporting B.C. jobs. This is simply not the case. Log exports have a key role in the development of B.C.’s economy, particularly on the coast, by supporting jobs and economic activity in the logging and transportation sectors.

“We can debate which logs we should export, what the export fees should be and what the process should be to export, but what we should not do is talk about banning log exports and making claims that we are exporting jobs,” says Dave Lewis, executive director of the Truck Loggers Association. “The forest industry is running at full tilt right now – largely because of log exports. A ban on exports would have a net negative impact on employment as harvesting jobs would not be replaced by manufacturing jobs.”

As Bob Matters of the United Steel Workers said at a recent forum, “Log exports that strategically support jobs is something we can support and is a good place to start.”

Our inability to harvest our Allowable Annual Cut (AAC) since 2005 has resulted in an elimination of more than 2,100 direct jobs in the timber harvesting sector each year. Even if log exports were banned, the timber that is currently being exported would not be redirected to a local mill. It would stay in the forest because local mills are not prepared to pay the cost to harvest it. This puts loggers, engineers, silviculture workers and forest managers out of work.

“Of course the forestry sector should continue to diversify and, yes, timber should go to local mills first, but at a fair price. Finding the right balance is the key to the long‐term success of B.C.’s forest harvesting and sawmilling sectors,” explains Lewis.

‐30‐

For all enquires please contact: Jennifer Fowler Director, Communications Truck Loggers Association Phone: (604) 684‐4291

Email: [email protected] Truck Loggers is pleased to have the opportunity to provide the following input regarding the export of logs from BC.

SubmittedtotheProvinceofBritishColumbiaonbehalfoftheTruckLoggersAssociation(TLA)September15,2011

Logexports:Thereality

The volume of logs being exported from our province to Asia has increased dramatically over the past two years. This has brought the issue of log exports to forefront of the political debate as it is politically charged. Those within the harvesting and timber management sector are seeking a greater degree of freedom, efficiency and certainty of export as foreign buyers have filled a void that has been created due to falling domestic demand. Those within the manufacturing sector are asking to maintain or increase controls on log exports to facilitate their ability to secure logs at prices that they can afford to pay for logs. These two interests from the two sectors generally do not align with one another and create friction whenever changes to the current system are proposed. Historically the default position has been to leave the current system in place, not because it is without warts, but simply because it is the most convenient path forward.

While labour, industry, and all levels of government have not found common ground with regard to specific export policy criteria or objectives, they have all expressed an opposition to the industry’s ongoing erosion. Given the historic difficulty in changing policy, perhaps the most benefit can be gained by applying the existing policies in a manner that serves to increase the economic and social well being of all participants. If a way can be found to do this, we will eliminate some of the extreme polarization that exists around this issue




(ban log exports) and can proceed with the objective of “how to best manage and control the export of logs from BC.” As Bob Matters of the United Steel Workers said at a recent forum “Log exports that strategically support jobs is something we can support and is a good place to start.”

The TLA feels that the current review of log export policy could be divided into the following three distinct components in order to accommodate the diversity of stakeholder interests, while still meeting the government’s social and economic policy objectives.

1. How do we best apply or target the existing policy to meet current objectives? 2. How do we change individual components of the existing policy in order to improve its efficiency,

certainty and cost to stakeholders in the short‐term? 3. What does a durable export policy that meets stakeholder’s long‐term objectives look like?

This submission speaks to the first component: “how best to apply the existing policy”, in the best interests of the Province. The single biggest issue that has plagued the coastal forest industry over the past two decades has been the alarming and increasing negative trend of undercutting our coastal AAC. This proposal seeks to address that issue. We have provided some background documentation as well that hopefully provides useful information for politicians as they wrestle with this sensitive topic.

Howdowebestapplytheexistingpolicytomeetcurrentobjectives?

While changing policy requires either consensus from stakeholders or courageous decision makers, applying the existing policy in a differential manner is not only possible – it is the norm. Presently an opportunity exists to utilize current policy in a targeted fashion to address the undercut issue that has plagued the coast for two decades. While there is interest in changing some of the current policy, not all aspects of current export policy are bad or require change. The government should continue to apply the existing policy in an effective and efficient manner as it undertakes the current policy review.

The TLA proposes that current export policy could be targeted towards forest stands with characteristics that make them uneconomic to harvest, so that they are provided greater certainty of access to higher value international markets. Despite widespread disagreement amongst stakeholders on how to change existing export policy, there seems to be at least an initial universal acceptance towards this sort of application of the existing policy.

ACommonProblem

The coastal Annual Allowable Cut (AAC) has not been harvested since 1992. Since 2005, annual harvests have fluctuated between 50% and 80% of our ACC and 46 million m3 of sustainable timber harvest has been neglected. The gap between our sustainable harvest level and our economically viable harvest level has been widening for at least three market cycles. Market prices do not seem to have enough impact to change the trend towards an ever‐increasing undercut of typically lower grade timber in high cost operating areas; and the current surplus test does not provide the certainty of access to export premiums that are required by licensees to justify the millions of dollars that must be invested to plan, develop and harvest this timber. As a result, the majority of the timber stands that languish around the economic margin of profitability are left unharvested.

Stands of lower value old growth on Vancouver Island typically require an investment of $100/m³ before they can be sold. More isolated areas on the coast or those that require special management or aerial harvesting can be upwards of $150/m³ of cost. Typcially the lower value timber that dominates these stands carries domestic prices that are less than $70/m³. In the past two years, foreign buyers were paying almost double what domestic manufacturers were for some of this lower value timber. The current system however, did not provide guaranteed access to these prices, so often the timber went unharvested as operators were not prepared to take the risk. This lack of certainty not only impacts sub‐marginal timber stands, but it also impacts the timber stands that are within $10/m³ of the margin as the time that it takes to develp this timber exposes it to market fluctuations. (Typically on a pro‐forma basis, stands with less than $10/m3 positive return are avoided.)

Most old growth stands contain a variety of species and grades of timber. They are able to be harvested without exports if the higher value timber can subsidize the cost of taking the low value timber. Fewer and fewer stands have enough higher value timber to offset the low value timber. While each region has its own




specific challenges, this problem has largely been characterized as the Hemlock/Balsam issue on the coast. The cost of old growth log production on the BC coast is generally between $400 and $650/thousand board feet. The current market price for commodity lumber destined to China is $250/thousand board feet. The average price paid for logs (to the same market) is roughly $630 per thousand board feet. Coastal stands that are largely comprised of low value timber are generally uneconomic to harvest (even when stumpage is negligible) given commodity lumber prices, unless a significant component of export is allowed. In the absence of high value timber in the stand, export premiums act as a surrogate subsidy for lower value stands.

Over the past two years the mechanism that has been most successful in terms of adding value has been the sale of logs on the export market. Over time, the price of finished goods has not kept pace with the raw material cost so while demand exists for finished goods, coastal manufacturers are economically challenged in terms of acquiring fibre. It would appear that Asian manufacturing facilities have significantly lower production costs and tend to get more value out of low grade logs than our domestic coastal mills given the fact that they pay significantly more for logs than lumber. Interior mills seem to be able to supply a commodity product at that market price due to their lower manufacturing costs and lower log cost. To improve the economics of the current coastal situation, we need to either reduce costs or increase revenues. Cost cutting measures continue to be a focus; however, after reducing costs 20% over a ten year period from 1998 to 2008 (Russ Taylor), most of the low hanging fruit has been plucked, This would tend to indicate that the solution lies on the revenue side of the equation. Most log export critics espouse that exporting logs leaves domestic mills short of fibre. That is simply not the case.

CoastalLogDemand

Summarized below is the log demand data over the past 6 years together with a forecast through 2028 and charted it by type of consumer against the coastal AAC inclusive of private contributions to available log supply.

When operating at historic capacity, BC coastal mills can consume approximately 16 million m3 of logs per year. BC’s sustainable coastal harvest level is 24 million m3 (including private land). If every coastal mill got every log that they needed, there would still be approximately 8 million m3 of timber left over for export. While it is true that we are exporting more and more timber, it is also true that there is still considerable timber that is in excess of demand, still left over.

Coastal Log Demand Forecast

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Sawlog Demand Peeler Log Demand Shake and Shingle Demand

Post and Pole Demand Pulp Log Demand Log Exports

Crown AAC + Private




PolicyVision

Export policy should:

seek to ensure that BC manufacturers, who will pay a fair domestic market price for economically viable crown timber, have access to it;

should be applied to facilitate the harvest of otherwise uneconomic timber and to entice the harvest of the entire timber profile. Logs that are surplus to BC manufacturer's needs should be made available for export;

should seek to provide both timber buyers and sellers with a reasonably certain and efficient process to sell or buy logs, while preserving accurate domestic pricing signals for MPS calculations;

should seek to maximize the total domestic economic activity within the forest sector, preserve forestry infrastructure and optimize future timber supplies.

The TLA believes that if this policy is solely targeted towards the component of the AAC that is deemed “uneconomic” there can be fewer objections to exports. Log exports is critical to the health of our coastal logging economy. It is not our intent to suggest only patchwork solutions. Many people want to see log exports reduced. As shown, this is counterproductive to sound economic policy and good forest management. The TLA looks forward to feedback on this submission and with the support of government will continue with its analysis and the development of this policy proposal. The TLA is also prepared to provide subsequent input with regard to short term changes to the existing policy or the long‐term objectives of log export policy should government choose to undertake those initiatives.

To Contact the TLA:

Dave Lewis: Executive Director 725 – 815 West Hastings Street Vancouver, BC V6C 1B4

Phone: 604‐684‐4291 Fax: 604‐684‐7134 Email: [email protected] Web: www.tla.ca




AppendixVII–RemarksbyExecutiveDirectorRussCameron

Independent Wood Processors Association of British Columbia address to the Mayors at UBCM 2011

Introduction

Update on the state of BC’s family owned, non‐tenured wood processors.

Forty years ago, formed the Independent Wood Processors Association, or IWPA (formerly ILRA)

We are all family owned, none of us have been given the renewable right to harvest the public’s timber, and we all buy our wood fibre on the open market at prevailing market prices.

We are currently working with DFAIT, NRCan, and the Government of BC on the implementation of the EU’s Legal Harvest legislation, similar pending legislation in Australia and China, possible changes to the US Lacey Act, the current Australian anti‐dumping investigation, log export policy, consultations on the CETA, BC Timber Sales, Category 2, SLA extension or expiry, and the BC Interior SLA Arbitration to name a few of the issues.

So how are we doing?

I am sure that you are all aware that we are in serious trouble and no doubt some of you have lost some family owned businesses in your communities.

Prior to the SLA 2006 with the United States, the IWPA had 120 members employing over 4000 British Columbians.

We have now lost 37 companies to bankruptcy or voluntary closure and most of the remaining members are running between 40% and 50% capacity and are presently hanging on by their finger nails.

Why are we going broke?

We are going broke because we do not have fair access to the US market and we do not have fair access to BC grown wood fibre.

We hear all this talk about China. Well, China might be great for the major licensees, but as far as we are concerned, they are a low cost competitor that BC is bending over backwards for to make sure that they are supplied with the BC logs and lumber that we used to buy and process here. We wish that the BC Government was making the same effort on behalf of the British Columbian families that are employing people in BC, paying taxes in BC, and processing BC wood fibre in BC.

When we asked our members, 2 years after the US market collapse, why they were going broke, the number one reason was their inclusion in the Softwood Lumber Agreement and the number two reason was difficulty obtaining wood fibre due to the Softwood lumber Agreement and due to the consolidation of the major licensees. Only 20% of them even mentioned the collapsed US housing market.

We are all aware that US housing starts are only a third of what they were 6 years ago but did you know that:

As of September 19, 2011, the US Residential BuildFax Remodeling Index rose 24% year‐over‐year and for the twenty‐first straight month to the highest number in the index to date.

The major licensees traditionally supply 30 to 35% of the US commodity framing market, but we only supply 1% of the US specialty market. For the, housing start dependent, major licensees to




maintain a survivable US market share is impossible, but for us it is not. We can maintain market share because we can supply small volumes of high quality specialty products and an exceptional degree of service to a nearby specialty market that has not suffered to the same extent as housing starts. When you can’t sell your house … or get credit to buy a new one … you remodel.

We do acknowledge the negative effects of the US recession and the appreciation of the Canadian dollar relative to the US dollar, but due to the specialty niche products and services that we provide, those are problems that we can deal with.

What we have been unable to deal with is the $75/mfbm tax on our products shipped to our primary market. The tax was designed to make us unable to compete in the US market and in that respect it has worked very well.

The problem for us is that in an effort to retain the tenure and administrative timber pricing systems for the tenured sector, the GOC and GBC have imposed a border tax to the US market that also applies to the non‐tenured sector. This is in spite of the fact that we already pay market prices for our lumber in competition with the Americans and others.

As the US Coalition for Fair Lumber Imports stated in their offer to Canada:

“The settlement accord should provide that a province’s adoption of fully open and competitive timber and log markets would automatically result in lifting of interim measures for that province. Absent fully open and competitive markets, however, the nature of criteria on the basis of which interim measures would be reduced or lifted remains in question.”

We understand the desire of the large public companies to retain their tenures and the systems of administratively pricing the public timber under their control. We also understand their willingness to pay duties and border taxes, or to be subject to quotas. That is the price that they chose to pay to retain their benefits and avoid having to buy their wood fibre on the open market as we do. But the effect of applying these penalties to the products of companies that have to compete for their wood fibre on the open market in competition with the Americans and others, has been devastating.

Here is what the tax does to us:

As intended by the tax, our US competitors can undercut us by up to $75/mfbm.

We know that we must pay an extra $75/mfbm that the American and Chinese wood processors do not have to pay, therefore we must buy our lumber $75/mfbm cheaper. Good luck with that.

We know that we must pay an extra $75/mfbm that the American and Chinese wood processors do not have to pay, therefore we must buy our logs $18 to $20 / m3 cheaper. Good luck with that too. In fact, it is difficult for us to understand why BC doesn’t impose a border tax on logs equivalent to that the Americans demand we apply to our “subsidized” lumber that is cut from the same logs.

The $75 tax helps to subsidize the shipment of our wood to China where they can take advantage of low labour rates, and then ship it back to the US where it enters tax free.

BC has barred non‐tenured wood processors from bidding on BCTS public timber sales unless we agree to pay additional border tax on the costs of adding value to BC wood fibre in BC. Labour, heat, light, insurance, property tax, leases, etc

And now our remaining non‐tenured BC Interior members live in fear of being pushed over the edge by becoming subject to any additional penalties that may be imposed by the Grade 4 Arbitration should it be judged that the tenured companies paid insufficient stumpage.

What BC and Canada need to do is to recognize, as we do, that the tenured companies do not wish to compete for their wood fibre but do wish to retain the administrative pricing systems that they




currently have. The proof is in the fact that they are willing to pay 15% to retain these benefits. The non‐tenured companies that do compete for wood fibre have no problem with their decision but we do not wish to pay part of the penalty on their behalf.

Given that the tenured companies are the only ones to receive the benefit, we need you to insist that provincial and federal politicians have the tenured companies pay the entire cost of retaining their benefits instead of having the family owned businesses in your communities pay part of the price for them.

The opportunity for you to do so may occur if we lose the Arbitration and Canada decides that non‐tenured family owned businesses in the BC Interior should pay part of the penalty on behalf of the licensees.

The opportunity will occur during extension or expiry negotiations or during the next round of the softwood lumber dispute, as we assume that the licensees will once again prefer to pay some kind of penalty to keep their tenures and avoid having to compete for their fibre.

This problem is solvable if there is the political will to solve it.

Russ Cameron Executive Director