Buid [it] Here: EEDC Annual Report 2012

Build [it] HereANNUAL REPORT 2012

See the annual report video atwww.edmonton.com/2012report

ii ANNUAL REPORT 2012 EDMONTON ECONOMIC DEVELOPMENT CORPORATION

Build [it] HereThe spirit of Edmonton. It is something that unites us.

Whether you are in the private sector or the public service, whether you are 25 years old or 65, and whether it is 30 above or 30 below outside, we all came to Edmonton in search of an opportunity to grow.

And every Edmontonian chooses to stay here.

Because we are building something here.

Whatever your is.

Your career. Your business. Your family. Your skills. Your life … your opportunity.

We are issuing an invitation to the world, and say, “Come build here.”

Contents 1 About Us 2 2012 Economic Highlights 3 2012 Achievement Highlights

6 Summary of Financial Results 8 Board Members

Cover photo (courtesy of City of Edmonton): Teamwork and attention to detail feature prominently in Edmonton’s north light-rail transit extension, currently under construction and scheduled to start running in 2014.

EDMONTON ECONOMIC DEVELOPMENT CORPORATION ANNUAL REPORT 2012 1

Edmonton Economic Development Corporation (EEDC) is a wholly owned not-for-profit entity of the City of Edmonton, governed by an independent board of directors and managed by an entrepreneurial team that understands that our customers are Edmonton’s current/future business leaders and investors.

EEDC is responsible for providing leadership to the economic growth strategy for Edmonton and the Capital Region through the following functions:

• Supporting industry growth and diversification

• Stimulating entrepreneurism and innovation

• Marketing the city’s image in target markets

• Managing the Shaw Conference Centre

• Boosting tourism, events and attraction

• Enriching the Edmonton Research Park

Maintaining responsibility for these functions, EEDC works in partnership with the economic development system’s key stakeholders like the City of Edmonton, Edmonton International Airport, post-secondary institutions, the Government of Alberta, regional economic development agencies, Port Alberta, Productivity Alberta, Northlands and the Edmonton Chamber of Commerce to generate prosperity for industry and heighten Edmontonians’ standard of living.

To realize our vision of Edmonton as Canada’s economic and industrial powerhouse, we will inspire a culture of entrepreneurship, innovation and competitiveness that forever differentiates our city. Our objective is to ensure Edmonton and the Capital Region outperform every major economic jurisdiction in North America consistently over the next 20 years.

About [Us]

Note to Readers

This annual report for 2012 has been produced in two parts. This printed report complements a video that provides an overview of 2012 by Board Chair Peter Silverstone, and CEO and

President Brad Ferguson. The video, in addition to this report and the full audited financial statements, can be accessed at www.edmonton.com/2012report.

2 ANNUAL REPORT 2012 EDMONTON ECONOMIC DEVELOPMENT CORPORATION

[2012] Economic Highlights

1 Labour Force - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual

2 Employed - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual

3 Unemployment Rate - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual

4 Inflation Rate - Statistics Canada Consumer Price Index, annual percentage change5 Housing Starts - Canada Mortgage and Housing Corporation6 Value of Building Permits - City of Edmonton Monthly Building Permits Summary, Dec. 20127 Downtown AA Office Space - Avison Young Edmonton Office Market Report, Q4 2012 and Q4 2011

2012 2011 % CHANGE

Labour Force1 727,500 709,400 3%

Employed2 693,200 671,000 3%

Unemployment Rate3 4.7% 5.4% -0.7%

Inflation Rate4 1.1% 2.5% -1.4%

Housing Starts5 12,837 9,332 38%

Value of Building Permits6 $3,419,353,800 $2,820,744,900 21%

Downtown AA Office Space ($ psf)7 $27.70 $25.00 11%


Industry Development

[2012] Achievement Highlights

• Participated in June Consider Canada attraction mission (an association of 11 large municipal economic development agencies and the Government of Canada).

• Developed a labour attraction program working with industry partners, targeting the US Pacific Northwest.

• Continued to participate in the Federation of Canadian Municipalities’ economic development and democracy project in Ukraine through hosting of visitors, delivering professional development and sharing knowledge.

• Exposed senior and junior high school students to Edmonton-area industry and career opportunities, as well as a post-secondary education alternative, through a pilot field trip program, including construction, transportation, logistics and auto service sectors.

• Continued partnership with Productivity Alberta to deliver supply chain workshops to help companies increase innovation and productivity.

• Facilitated networking and relationship-building by bringing together and exposing potential partners to diverse initiatives, including:

• Matching mentors and University of Alberta students in the field of nanotechnology.

• Partnering with Government of Alberta to host 260 US State House of Representatives and State Senate members for their annual Council for State Government West meeting in Edmonton.

• Leading visit by United Kingdom’s new Alberta-based Consul General and a UK science and innovation team.

• Hosting inbound Chinese investment delegations.

• Exhibiting at and taking part in industry trade shows inside and outside Canada.

• Sponsoring targeted industry events and symposia.

• Participating in outbound marketing and investment missions.

• EEDC’s Kent McMullin was recognized as Economic Developers Alberta’s economic developer of the year and elected president.

• Hosted 32 familiarization tours for 207 travel trade representatives, promoting Edmonton as a destination.

• Hosted eight tourism industry mixers attracting almost 700 people.

• Promoted Edmonton as a leisure destination at 12 events and targeted marketplaces.

• Celebrated hospitality industry frontline workers with the 12th annual You’re Welcome Edmonton program, attracting over 1,500 nominations in 18 categories from 81 organizations.

• Hosted Rendez-vous Canada, the Canadian Tourism Commission’s premier annual Canadian marketplace conference that attracted over 1,400 tourism professionals from around the world.

• Promoted Edmonton as a regional market destination through award-winning summer and winter campaigns, which targeted Alberta, northern British Columbia, Saskatchewan and Yukon and Northwest Territories.

• Promoted Edmonton as a meeting and convention destination by taking part in 24 marketing events/opportunities and trade shows throughout North America.

• Led September mission to China focused on attracting Chinese visitors, increasing business ties and planning for 2013 World Ice and Snow Tourism Congress.

Tourism



• Hosted semi-annual Homeless Connect attended by over 3,000 guests with access to services ranging from dental care to optometry to employment assistance — supported by more than 400 community volunteers.

• Undertook major refurbishments and renovations to reopen lower level meeting rooms for business in under 10 weeks, after flooding from severe summer storms damaged more than half the building.

• Sous Chef Serge Belair won the Canadian Culinary Federation’s Chef of the Year challenge.

• Partnered with Edmonton Public Schools on the third year of pARTnership Gallery, a year-round student art gallery located in Shaw Conference Centre.

• Awarded the 2012 ROOPH Award (short for Recognizing Outstanding Organizations and People in Housing) by Homeward Trust for space, services and labour incurred in support of its homelessness reduction initiative.

• Named “Venue of the Year” by Meeting Professionals International Edmonton.

• Launched an annual eco-report to the community, showing the building’s reduction in water and energy, and landfill diversion rates.

• Brought around 100,000 delegates into downtown Edmonton through hosting 32 conventions, creating economic benefit for the area’s retailers, attractions, transportation services and more.

• Created almost $51 million in economic impact in Alberta, with $39 million of that focused in Greater Edmonton.

• Hosted more than half-a-million guests at over 700 events.

• Produced 34 event attraction bids or referrals, confirming 24 events worth 22,239 room nights and $6.5 million direct expenditure.

• Co-led Edmonton’s bid to be a host city for 2015 FIFA Women’s World Cup, the world’s largest single sports event for women — resulting in Edmonton’s selection as one of six Canadian host cities.

• Partnered with industry to confirm Edmonton as the starting point for the inaugural 2013 Tour of Alberta: Canada’s Pro-Cycling Festival. Sanctioned by the Union Cycliste Internationale, it is the international cycling circuit’s newest professional event.

Shaw Conference Centre

Event Attraction



• Launched the $10 million Edmonton Filmed Entertainment Fund with Los Angeles-based partner Kilburn Media to stimulate film activity in Edmonton through equity investment.

• Launched and awarded, in conjunction with Edmonton Arts Council, the inaugural $10,000 Edmonton Film Prize to Niobe Thompson’s The Perfect Runner shared with film maker Trevor Anderson’s The Man Who Got Away.

• Hosted seven visiting production companies scouting Edmonton as a potential filming location.

Film Production

• Continued to increase community understanding of the importance of downtown and the growing momentum of downtown’s renaissance through the Downtown Vibrancy Task Force and related initiatives.

• Contributed to the City of Edmonton’s new WinterCity Strategy formulation.

• Worked with local opinion leaders and City of Edmonton on advancing local independent business community’s interests and goals.

• EEDC’s John Ennis was selected for the 2013-14 Business Alliance for Local Living Economies’ Local Economy Fellowship program, one of 16 such local economy leaders in North America.

• Developed and delivered instruction on quality of life and community pride as part of City Hall School program curriculum.

• Attracted over 684,000 unique visitors to www.edmonton.com, up almost 30 per cent from the previous year.

• Increased social media accounts following on average by 9 per cent.

• Launched a hosting program as a service to support local organizations in their senior-level recruitment, provide a meaningful Edmonton experience and increase the likelihood of candidates’ relocation to the Edmonton area.

• Since arriving in August, CEO and President Brad Ferguson conducted 15 speaking engagements.

• Generated coverage of Edmonton in regional, national and international media worth $87.9 million in earned media value.

• Organized 45 travel media visits for 117 participants, highlighting Edmonton’s offerings for their readers and viewers.

• Promoted the city’s festival calendar through the Live All Year program at Edmonton International Airport, exposing airport users and visitors to the arts and culture scene.

Quality of Life

Marketing & Communications


Summary of [Financial Results]EEDC realized strong financial performance for 2012, ending the year with a $252,078 surplus on a modified cash income basis compared to the annual budgeted net zero cash requirement. Based on accounting policies used to prepare the audited financial statements, EEDC reported a net operating deficit of $400,172 compared to a budgeted deficit of $616,350.

Revenues for the year were lower than budget but higher than the prior year. The Shaw Conference Centre’s revenues were lower due to business volume.

The City of Edmonton, EEDC’s sole shareholder, provided 36 per cent of revenue in 2012.

Operating and program expenses were lower than budget and prior year. The Shaw Conference Centre incurred lower labour costs, and there were lower general operating costs in other divisions.

For more detailed information, please review the audited financial statements at www.edmonton.com/2012report.

divisional REsults for ThE YEAr EndEd dECEmBEr 31, 2012

ShAW ConfErEnCE CEnTrE

ToUrISm dEVELoPmEnT

EConomIC dEVELoPmEnT

EdmonTon rESEArCh PArk 2012 ToTAL

City of Edmonton $ 2,990,000 $ 4,083,000 $ 4,381,000 $ 882,000 $ 12,336,000

External revenues 13,904,850 5,156,847 666,529 2,226,944 21,955,170

16,894,850 9,239,847 5,047,529 3,108,944 34,291,170

Operating and program expenses 16,850,523 9,379,796 4,934,068 2,033,000 33,197,387

Net amortization - - - 1,194,446 1,194,446

Interest 64,788 - - 234,721 299,509

16,915,311 9,379,796 4,934,068 3,462,167 34,691,342

Net surplus (deficit) for 2012 $ (20,461) $ (139,949) $ 113,461 $ (353,223) $ (400,172)

Net surplus (deficit) for 2011 $ 87,144 $ 167,217 $ 113,803 $ (659,086) $ (290,922)


summaRy FinanCial REsults for ThE YEAr EndEd dECEmBEr 31, 2012

SUmmArY STATEmEnT of oPErATIonS 2012 BUdgET (UnAUdITEd) 2012 ACTUAL 2011 (rESTATEd)

City of Edmonton $ 12,336,000 $ 12,336,000 $ 12,086,000 External revenues 22,359,486 21,955,170 20,980,799

34,695,486 34,291,170 33,066,799Operating and program expenses 33,854,678 33,197,387 31,876,490

Operating surplus before amortization and interest

840,808 1,093,783 1,190,309

Net amortization 1,158,546 1,194,446 1,158,546

Interest 298,612 299,509 322,685

1,457,158 1,493,955 1,481,231

Net deficit for the year $ (616,350) $ (400,172) $ (290,922)

STATEmEnT of fInAnCIAL PoSITIon 2012 2011 (rESTATEd)

assets

Current assets $ 12,255,768 $ 12,619,188Long-term assets 16,129,484 10,058,910

total assets $ 28,385,252 $ 22,678,098

liabilities

Current liabilities $ 9,321,052 $ 10,024,843

Long-term liabilities 15,231,978 8,420,861

total liabilities $ 24,553,030 $ 18,445,704

share Capital and net assetsshare Capital $ 100 $ 100 net assets

Accumulated operations 3,832,122 4,232,294

Accumulated remeasurement

gains or losses - -

$ 3,832,222 $ 4,232,394

total liabilities, share Capital and net assets

$ 28,385,252 $ 22,678,098

Board [Members]

richard Brommeland

Quantiam Technologies Inc.

robb Campre

Maskwa Consulting

Phyllis Clark

University of Alberta

doug Cox

Touchstone Holdings Ltd.

Paul Ingram CA

Rotating Right

JoAnn kirkland

Government of Alberta

Chris LaBossiere

Yardstick Software Inc.

mayor Stephen mandel BSBA, MA

City of Edmonton

roger Palmer

LEAD Consulting

Tracey Scarlett

Alberta Women Entrepreneurs

Peter Silverstone MB.BS, MD, FRCPC

PHS Holdings

Barry Travers FCA

KPMG LLP

richard A. Wong

Travel Alberta

henry Yip P. Eng.

Nirix Technology

Simon farbrother

City of Edmonton

Bob Turner BA, LLB, B.Comm., QC

Fraser Milner Casgrain

Board of Directors

EEDC Advisors


Board [Members]

EEDC works with many companies and organizations, and supports many dynamic partnerships. Here are some of our key partners in 2012.

Edmonton Capital Region

tourism Partnership

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Kilburn media


Edmonton Economic development Corporation World Trade Centre Edmonton 3rd floor, 9990 Jasper Avenue Edmonton, Alberta, Canada T5J 1P7

780.424.9191 or 1.800.661.6965 [email protected] www.edmonton.com

Documents

Buid [it] Here: EEDC Annual Report 2012