An Introduction to the Economic Developer’s

Council of Ontario

University of Western OntarioUrban Economic Development

November 2009

Presentation Outline

• Overview of EDCO

• EDCO’s Local Economies in Transition Initiative

• Challenges in Economic Development

Background

Aileen Murray Ec.D. (F)– President EDCO– Manager of Economic Development,

Middlesex County– Principal Mellor Murray Consulting

– Previously 10 years Chatham-Kent Economic Development

– DMA, Alpha Services, Cadillac Fairview, Carlton Cards

Economic Developers Council of Ontario (EDCO)

• Largest provincial economic development association in Canada with just under 600 members representing 175 communities across the province.

• Independent, non-profit incorporated association of persons engaged in economic development for over 50 years.

• Members include: – Municipal, provincial, federal governments– Community Futures Development Corporations– Workforce Development Organizations e.g. Training

Boards, Industry Education Councils, Educational Institutions

– Industrial, commercial realtors and land developers.

Vision & Mission

• Vision: Enhance and develop an economically viable and environmentally responsible Ontario

• Mission: EDCO will provide a forum to enhance the professional development of its members; advance economic development as a profession and promote, assist and foster economic prosperity within our municipalities in the province of Ontario

Our History

EDCO Roles

• Focus is on professional development for the membership

• Not an advocacy organization

• Liaison between province, economic developers, and business community

• Disseminating information and raising awareness

Local Economies in Transition 2007

• Initiative in partnership with the Ministry of Economic Development in 2007

• Project activities & outputs:– Engagement of site selectors– Mock site selection exercise,

involving an RFP and site visit

What was involved?

• Project activities & outputs:– Series of 6 one day “roundtables” to

present investment readiness best practices and results of mock exercise. 150 + attended.

– Created project web site that was heavily visited and is still an actively used resource.

– On-line investment readiness assessment

• Supporting the Economic Development Mission• EDCO is one of the better Economic Development organizations by industry standards• There is a high level of Provincial involvement in economic development• Generally good Provincial level data resources

• Regional Branding / Attraction Strategies• Notable success stories

• Ontario East Economic Development Commission• Canada’s Technology Triangle• GTMA

• A handful of communities have developed and articulated an economic development strategy• Most communities are poorly represented at this macro level

#1 – Are Ontario Communities Getting on the Radar Screen?

#2 – Are “Development Ready” Ontario Communities Passing the Test?

The LETI Site Selector initiative involved two levels of community assessment:

• Response to site selector project RFP

• Site selector community visit – “Readiness Assessment”

Site Selector Visits1. Rainy River/Ft Frances2. Thunder Bay3. Greenstone/Geraldton4. Sault Ste. Marie5. Sudbury6. Pembroke7. Hamilton8. Orangeville9. Brockville10. Gananoque11. Mississauga12. Oakville13. Collingwood14. Meaford15. Minto16. Goderich17. Tillsonburg18. London19. Chatham20. Leamington

1 3

4 6

9

11

15

1819

16

10

20

13

2

5

17

14

12

87

“Investment Ready” - More than Just Sites

What Does It Mean?

• Successful industry retention program• Fast-track permitting for new investment • Well versed on federal, provincial, and local

incentive programs• Incentives tailored to meet the needs of

individual businesses• Local business participates in community

organizations, events• Active community programs include festivals,

public art, recreation• Community is in good condition including

roads, public buildings, schools, parks• Stakeholder Buy-In

What Site Consultants Look for in Communities

• Up-to-date and Forward Looking – communities that frequently assess strengths and weakness and adjust strategies accordingly

• Regional Approach – communities that take a regional approach to coordinate marketing and attraction efforts

• Provide Professional Assistance – communities that follow a high standard when working with site consultants and company prospects

• Data Rich – communities that invest in robust data resources

What Site Consultants Look for in Communities

• Know Themselves – communities that keep site, city and regional maps up-to-date (on top of growth)

• Involve the Real Estate Community – communities that make brokers, property owners and developers part of the team

• Educated Stakeholders – communities that involve board members, politicians, government officials, business community

• Professional – communities that are responsive, punctual, honest, thorough in all dealings

• Good Restaurants – ED professional who prefers a local dive to Applebee’s and isn’t afraid to admit it

Scoring Category Possible Score

Community Reception 35

Labour 50

Transportation 35

Utilities 35

Community Appearance 35

Sites/Buildings 60

Schedule 15

Community Stability 20

Intangibles 15

TOTAL 300

Community Visit - Readiness Scoring 2007

Community Orientation – overview of community and business environment

Labour Interview – meeting with local employer

Meet with Utility Representatives – utility service details related to available site, estimated monthly bill, rates & fees

Industrial Park / Site Visit – tour available site(s)

Technical School Visit – overview of school as training resource

Employment Services – local workforce information

Community Tour

Taxes – property tax rates and information

Development Incentives – discussion and overview of available incentive programs

Community Visit Outline

Community Visits – The Good

Developable land offered at reasonable cost and development fees

Attractive, thriving downtown

Good Utility Infrastructure

Local improvements underway

Proven connection between training resources and industry

Community Visits – The Bad

Site not cleared for development, low power lines straddle future entrance

High cost of land and development fees

Lack of connection between industry and local training resources

Utility infrastructure not in place and/or capacity not available for new industry

Community Visits – The Ugly

Long abandoned hospital is testimony to a breakdown in local leadership

Brownfield site is far from being ready for development

Existing building not ready for a

new tenant

Lax rules for outside storage makes industrial parks less desirable

#3 – “Closing the Deal”Do Ontario Communities Appear Ready

and Able to ‘Close the Deal?’

• Communities do not seem to have the financial ability to ‘close the deal’ on proposed projects (i.e. infrastructure improvements, training funds, etc)

• A prolonged decision on funding or planning approvals* could drive a proposed project to another location that has the ability to work faster

• * Particularly for communities without delegated Ministerial approvals for Official Plan amendments

Key Finding: Low Level of Community Preparedness

Limited number of “shovel ready” industrial sites and buildings

Many communities lacked an up-to-date economic development strategy with industry targets

Community profiles were not of quality to sufficiently inform site selection decisions

Most economic development web sites provided insufficient information and functionality

Weak linkages between economic development and labour force development activities

Development fees and land costs are potentially prohibitive to many new investments, especially for projects that are considering both U.S. and Canadian

Many local elected representatives and senior administrators are not aware of the importance of community preparedness for investment

In comparison to U.S. and European jurisdictions, inter-municipal cooperation on a regional basis is underdeveloped and underutilized

Key Finding: Low Level of Community Preparedness (continued)

Key Recommendations

• Education

• Website

• Certification Program

Key Recommendations

Education• Expand education and awareness of

“Communities in Transition Initiative”– continued Investment Readiness Site

Selection community visits & evaluations

– education component for municipal councils

– outreach to different organizations

Key Recommendations

Website• Enhancement of EDCO website to provide

tools for EDO’s such as self-assessment tools, guides, workbooks, ready-to-use slide decks for presentations to local Councils- Completed in 2008 LETI Initiative

• Provision of consistent, relevant and current data to local municipalities through EDCO website

• Best Practice examples: Victor Valley, California, Cincinnati, Ohio

Key Recommendations

Certification Program• Establish Best Practices,

Standards/Norms, Certification that support benchmarking, regional collaboration– Create working group to further

develop education and certification program

• Best Practice examples: New York State, Charlotte Region, Oklahoma , Oregon

Next Steps

• EDCO working with Ontario Government/Federal Government to continue to deliver best practices to the Economic Development Professionals in the Ontario

• EDCO website revamp to accommodate resources for excellence in investment readiness.

2008 Local Economies in Transition

• Continuation of Community Visitation Program by US Based Site Selectors

• Results consistent with 2007 report – US site selectors determined most communities would not warrant a community visit based on written submissions

• Community visits rated better than written responses

Recent Initiatives

• Professional Development Listings• June 19, 2009 – Advanced Workshop:

Data and Analysis for Economic Development – Waterloo, Ontario

• Fall 2009 - EDCO Tourism Investment Readiness Seminars

• Fall 2009 – EDCO Regional Seminars• February 2010 EDCO Annual

Conference – Toronto, Ontario

LETI Phase 3

• Community Web Site Assessment

• Web site template development & implementation

• Webinar professional development

• Outreach program to targeted associations, AMO, SIOR, OSUM, OCC, EMC

Economic Development Challenges Facing Ontario Municipalities

• Transformation of Manufacturing (particularly automotive)

• Global Economic Pressures• Dependence on US economy• Energy – cost, supply, alternative energy

opportunities• Population decline (rural areas)• Brownfield, Downtowns• Talent• Focus

Response at the Municipal Level

• Updated Economic Development Strategy, Marketing Strategy, Branding

• More emphasis on Business Retention & Attraction

• Workforce Development• Tourism – Product Development• Creative Economy Programs• Entrepreneurship

Provincial Programs

• OMAFRA – RED Grants, data analysis REDDI site, First Impressions, Business Consultants

• MEDT – AMIS, NGJF, CIT, Business Enterprise Centre, Business Advisors, Export Ontario

• MMAH – CIPs Downtown, Brownfield• MTOUR – Marketing, DMO, DMMOs,

Investment Attraction

Federal Programs

• CFDC – small business loans, Community Economic Development, Mainstreets Ontario, delivering SODF loans

• DFAIT - Trade Commissioners Service, Consulates, Embassies, Invest Canada Communities Initiative (ICCI)

• Fed Dev Ontario – everything not covered by FedNor – SODF grants

FedDev Ontario

THANK YOU!

• VISIT www.edco.on.ca for further details