: incubation...

City Council Agenda

December 14, 2015 / File No.: 194-6

CITY COUNCIL AGENDA REPORT

Subject: INCUBATION STRATEGY Recommendation(s) 1. That the agenda report entitled “Incubation Strategy” dated December 14, 2015

be approved and that an implementation plan be developed by Administration and presented to Council by Q2 2016

2. That the NABI Building Fund be repurposed in support of the Incubation

Strategy and that Administration return to Council with a Terms of Reference for the use of funds by Q2 2016 for approval.

Purpose of Report This report outlines a theme for a business incubation strategy for the City of St. Albert. The strategy is multifaceted and will focus on aligning St. Albert’s existing strengths with the creation of a business eco-system that will allow for increased business incubation, investment and growth. Council Direction At the June 23, 2014, Council meeting the following motion was passed : (C338-2014) 1. That Administration collaborates with the Northern Alberta Business Incubator

(NABI) to develop an Incubation Strategy, in accordance with the terms of reference identified in the “Incubation Strategy - Terms of Reference” agenda report dated June 23, 2014, for presentation to Council by March 2015.

2. That Administration utilize an Oversight Committee structure to help guide the creation of the Incubation Strategy.

Background Following Council approval of the June 23, 2014 report and the associated Terms of Reference, Administration undertook to recruit members for the Incubation Strategy Oversight Committee. The members selected to the Committee are as follows:

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o Todd Tougas – EDAB Board Member o Brian Stewart – NABI Board Member o City Councillor/Mayor o Malcolm Parker – NABI Board Member o Rahim Jamani – Serial Entrepreneur and Angel Investor o Paulett Godin-Donovan – Chamber Board Member o Kelly Jerrot – City Culture Director o Glenys Edwards – St. Albert Public Schools Board Member o Alex Polkovsky - NABI Graduate Three meetings were held over the winter months to focus on developing an Incubation Strategy for St. Albert. The Incubation Strategy Oversight Committee’s observations of the entrepreneur and business environment in St. Albert as it relates to incubation can be summarized as follows: • St. Albert offers significant community support as a value proposition in

support of a wide variety of strategies; • 32% of the businesses in Campbell and Riel Business Parks fall into two

sectors; Professional/Technical and Construction; • Existing business clusters should be utilized as support for an incubation

strategy; • St. Albert has an existing relationship with NAIT and U of A; and • Northern Alberta Business Incubator (NABI) is located in St. Albert and has

experience with this cluster. The committee then focused on a specific theme focused on 'Innovative Green Construction' and outlined some specific next steps to serve this finding and direction. At that point this committee effort was considered to be sufficient for the Administration to develop a detailed strategy for this theme. The committee was essentially disbanded at this juncture as the Administration developed the report and framework for this strategy. Upon further contemplation and discussions in the Administration over the following few months, it became apparent that a more fulsome incubation strategy needed to be developed to serve the intention of the Council direction. At that point a meeting with three interested members of the disbanded ISOC was held and a renewed approach to the incubation strategy was contemplated and a fuller spectrum strategy with a number of facets was conceived and now forms the essence of this report. It should be noted that the ‘Innovative Green Construction' incubation framework developed by the original ISOC remains as a viable component of the overall strategy and is attached for reference (Attachment 1). Brand Influence on Broader Strategy The City of St. Albert has a very strong brand as The Botanical Arts City. This brand is being embedded into every aspect of the City and has been championed

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by the residents and business community. Further to the brand, St. Albert also has a labour force that is very distinct from the rest of the Capital Region. St. Albert’s labour force is primarily employed in knowledge-based creative sectors. The existing labour force and community population make-up provides an excellent support to any strategy that involves business incubation and success. Additionally, the City is embarking on the development and implementation of a Smart City Master Plan. The originating concept and vision of the Smart City Master Plan initiative is in essence an Economic Development strategy designed to position the City as a desirable location for investment and for businesses to incubate, flourish and grow to the ultimate benefit of St. Albertans and business people. The resultant profile that this vision will bring to the City, in combination with the business environment, will be used as a tool for attracting entrepreneurs and investment to St. Albert. The vision and ultimately the actionable and tangible master plan that will be approved by Council will provide investors, businesses and residents the mechanism that provides the direction and steps to enact and deliver on the vision. A significant community engagement process has been undertaken over the past year in support of this Smart City Master Plan. To further support the linkage and synergy between the botanical arts brand and the smart focus, the St. Albert Brand Promise includes the following statement: “With the botanic arts as a foundation, the city is rapidly becoming the home for innovation in green living and sustainable development, attracting businesses involved in the design, manufacturing and distribution of environmentally-conscious goods and services.” This statement illustrates a range of considerations that are being focused upon in the strategy to ensure that St. Albert is uniquely positioned in the region and province to maximize the benefit of having a clear and unique incubation offering from other communities. This focus on a unique descriptor and vision for the community is a very effective tool for business attraction and business success in our community. The incubation related statements that are currently being considered to be included into the draft Smart City Master Plan is derived from the overall context of the City’s complimentary brands and master plans and is as follows; Foster a Smart economy and reputation for St. Albert to differentiate the community and attract or incubate new business investment.

1.1 Promote St. Albert as a Smart City Centre of Excellence - a reference site

for Canadian municipalities and beacon for new industry investment. 1.2 Enhance the City’s local, national and international economic development

strategies with Smart City and innovation themes.

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1.3 Include supports for the incubation and acceleration of tomorrow’s

innovative businesses within the City’s economic development strategies. 1.4 Designate an area of St. Albert as a highly connected, technology

enhanced ‘innovation district’ where complementary businesses and others could cluster and thrive.

Strategy Development In the Incubation Strategy Terms of Reference presented to Council on June 23rd, 2014 it was noted that for a strategy to be successful it needed to be a specific subset of a broader program. It was recommended that utilizing the proposed Oversight Committee expertise and associated research, the strategy would be based on a theme of principles that will drive the strategy and the required resources to meet the desired outcomes. The original principles that were presented to Council for Administration to focus on were:

• Youth or young entrepreneur programs; • Target Sectors

o Generate the most taxes o Generate the most jobs

• Non-Profit • Social Enterprises; • Baby Boomer interests; • Existing Inventory of home-based businesses; and • Creative Industries

With these principles in mind, it was decided to focus primarily on the Creative Industries and Target Sectors. These two principles were selected based on the feedback from the Oversight Committee and NABI as well as from research done by Administration around alignment with the brand, corporate strategic plans, future master plans, etc. There are aspects of the other principles that do work themselves into the strategy over the longer term. It was determined that a vision statement for the end goal would help to focus the creation of the Incubation Strategy. The following is a suggested visionary statement for the Incubation Strategy: “As a ‘living lab’, St. Albert is renowned as an innovative community that successfully creates, incubates and grows business.” With the added guidance of our Brand and the pending Smart City Master Plan that focuses on delivering effective and efficient services to the residents of St.

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Albert, the Incubation Strategy focuses on incubating businesses that are in support of these comingled visons for the City. With this vision and the principles of focus as mentioned above, Administration has explored several different approaches that ultimately support the creation of a healthy and vibrant business eco-system that will be both supported and augmented by the Incubation Strategy. The envisioned business eco-system is known locally as a Centre of Excellence. This concept is not new and has been an expressed vision in the community for a few years and has come to mean both a physical building as well as a lofty goal for the overall position of the City in the regional municipal context. Incubating the Centre of Excellence Using the Centre of Excellence concept as an envisioned end goal, the Incubation Strategy is built to support this notion. The proposed Incubation Strategy also focuses on an area of the incubation market that is not currently being served with incubators locally or in the region. The Northern Alberta Business Incubator (NABI) has been a successful mixed use business incubator in St. Albert for the past 25 years. NABI started as the St. Albert Business Development Centre (by the City) and was later restructured to take advantage of other forms of funding. Over the past two and a half decades, NABI has grown significantly in size and stature and occupies two buildings and over 40,000 square feet of space that is currently housing 70 businesses and has had over 300 businesses and entrepreneurs graduate from their programs. NABI also provides start-up counseling to about 200 entrepreneurs each year. The range of services and business advice that is provided to clients of NABI is wide ranged and many entrepreneurs and business owners have opted to use the NABI services on a prolonged and ongoing basis. Many of the NABI incubated businesses have grown successfully in St. Albert and across Alberta. About 2/3 of NABI graduates remain in St. Albert. The incubation target of the proposed strategy is focused on an area of businesses that is unique and has a high potential for successful growth and expansion in St. Albert. It is also an intentionally unique offering designed to attract entrepreneurial attention and to provide the resultant outcomes for the City, namely the advancement of the Botanical Arts and Smart City vision focused on bringing value to residents. The resultant outcome of the Incubation Strategy is expected to define St. Albert as a community known as a Centre of Excellence in providing value through effective and efficient municipal services for its residents. The Strategy is also designed to act as the catalyst for creating the physical space that would ultimately

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house the entrepreneurs and displays their accomplishments and wares designed to serve the overall vision of a municipal Centre of Excellence. . Getting it Started Administration has considered several approaches to support the strategy of creating an innovative and vibrant business eco-system. The goal of the strategy is to implement several tactics that will allow St. Albert to ultimately become a “Living Laboratory” where business start ups will have access to support programs, venture capital, physical office space, and an innovative and creative environment. The Centre of Excellence can commence in a staged fashion whereby there is an environment for organic growth of the envisioned incubation and resultant business growth in St. Albert. An important first step for the strategy as a whole would be the creation of the “Office of the 21st Century”. Co-locating entrepreneurs with one another in a space combined with the resources that they require has been proven to be a recipe for success in the incubation world. The “Office of the 21st Century” has a tangible and immediate catalyst that can be acted upon in the short term. Through examination of available information, it has been determined that there are a significant number of St. Albert residents who are employed in the Information and Communications Technology (ICT) sector and who commute to work throughout the region on a daily basis. With this in mind a telecommuting center concept has been explored as a means to help address commuting challenges for both the employee residents of St. Albert and their regional employers. The launch of the 'Office of the 21st Century' in the city would initially be built around the telecommuting concept allowing the City to form partnerships with employers in the Capital Region who are open to flexible working environments for their staff. This telecommuting center would allow for our resident labour force to work in the City of St. Albert without having to experience the commutes. This type of virtual office facility has been shown to provide benefit to the employer and employee as well as to take pressures off of the transportation network and space accommodation challenges faced by employers to accommodate a growing workforce. This telecommuting concept has already been explored and several companies in the region have been identified for outreach to begin the formation of this virtual office space. This idea has also been vetted in the business community and initial reaction is positive for the establishment of this concept and physical space.

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With several large industry- leading-creative companies using the envisioned telecommuting office space and sharing the facility with entrepreneurs it will foster an environment wherein ideas can be created, shared, and championed. Accelerating the Strategy - Focus on the Entrepreneur Once a physical space has been developed as defined above, the next phase of the strategy would be to create an environment for entrepreneurs to focus on creating solutions to the benefit of St. Albert as a municipality for the ultimate benefit of its residents. A finding of the research indicated that innovation and creative solutions and the resultant industries flows from problem definition. In other words, express the problem to be solved and the creative minds and industry will find a solution. An additional dimension to this part of the strategy would be to co-locate select municipal employees with entrepreneurs to ensure clarity in the problem definition and the work in developing the solution. With the creation of the space, it is extremely important that entrepreneurs have access to programs as well as startup capital. Economic Development, in partnership with private investors, supports the idea of creating an environment where ideas and entrepreneurs meet. This tactic would focus on bringing entrepreneurs into an environment where prospective St. Albert investors would thoroughly vet business start-up ideas. This ‘funders forum’ would take place regularly and could begin with a panel of investors whom Economic Development has already sourced. Any entrepreneurs who avail themselves of this program would be required to start, stay and grow their business in St. Albert. The areas of focus for both the entrepreneurs and tenants in the telecommuting center would align with the target sectors and creative industries previously discussed. Green-Professional, Technical Construction and Professional, Scientific, and Technical Services. These targets fit the Smart City vision for the city as well as with the Botanical brand. Further to its alignment with the branding this strategy and its targets helps build on existing strengths within the city and fills voids in the current incubation model operating in the city. The Living Lab and Demonstration City St. Albert is fortunate to be a well-managed, mid-sized city with a well-educated populace and a reputation for being a community with a unique and distinct identity. This was also observed by the Oversight Committee and was reported earlier in the report as "St. Albert can offer significant community support as a value proposition in support of a wide variety of strategies" These characteristics provide St. Albert with an unique positioning that would potentially encourage entrepreneurs and researchers the opportunity to test their devices, sensors, materials and methodologies that have be proven by research in a live municipal environment. The extension of this approach would also result in

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St. Albert being a destination for other communities to observe the practical solutions in practice. This would not only entice entrepreneurs and business start-ups to begin the commercialization of their products but it would also provide the city a growing stream of visitors that in turn would drive the accommodation sectors in the city. Additionally, this living lab aspect provides the City the opportunity to enter into a partnership role with businesses that could be mutually and financially beneficial. Mechanisms to support this arrangement would need to be explored and are discussed later in the report. Basis for the Target Sectors Economic Development's recently completed business diversity study identified that the majority of the City’s residents labor force is very distinct from the rest of the Capital Region and are employed in Public Administration, Construction Services, Health Care, Educational Services, and Professional; Scientific and Technical Services. An important consideration in the development of this strategy was St. Albert’s identity in the region. St. Albert’s regional counterparts in Edmonton, Strathcona County, Parkland County, and Leduc – Nisku are focused on Tech, Oil & Gas, Manufacturing, and Oil Field Services. This has created a unique identifier for St. Albert as well as an opportunity. The focus of this strategy will revolve around incubating businesses in the professional, scientific, technical, and construction sectors. The target sectors of this strategy were chosen based on the strengths of St. Albert’s labour force as mentioned previously, as well as the highest return on jobs, taxes, and gross domestic product. Economic multipliers can identify the direct and indirect spin-offs or “shocks” from production generated by a particular sector throughout the rest of the Economy. Professional, Scientific, and Technical Services had a multiplier of 1.32. This multiplier translates as follows: for every $1.00 of Gross Domestic Product (GDP) generated by the Scientific and Professional services, an additional $0.32 in GDP is created in economic sectors throughout the province within the supply chain. The construction industry in St. Albert, which is amongst the largest employment sectors of St. Albertans, has a multiplier of 1.87 which equates to $0.87 additional GDP creation. It is important to note that this strategy builds off of what is already successful in St. Albert today and integrates it with the future Smart City vision of tomorrow. Supporting the Strategy Funding Over the years NABI has benefitted from both Capital and Operating funding from the City of St. Albert; however, NABI has now become self-sustaining and only receives a nominal annual contribution to a building fund. With the creation of this Incubation Strategy, and in support of it, Administration is proposing that the

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$25,000 fund formerly known as the NABI Building Fund and its accrued balance be repurposed in support of the Incubation Strategy. In concept, the funds will be put toward supporting the overall strategy and/or incubating business start-ups and/or supporting the business environment which would yield the most successful results. In addition, the funds could also be put toward the vision for the City of St. Albert to become a “living laboratory” wherein targeted sectors and creative industries would be highlighted and accelerated. These sectors have been vetted by the Oversight Committee in collaboration with NABI and align extremely well with the City’s brand and Smart City vision of the future. Council’s acceptance of the framework for this strategy with the corresponding proposed funding would propel Administration in advancing the strategy. Economic Development would move forward working with private industry as well as partner groups such as NABI towards implementing pilots and programs and the overall development and implementation of the full strategy. If this potential funding strategy is supported, administration would develop a terms of reference that would outline the intention and use of these funds and bring it to council in 2016 for approval. It is also envisioned that this incubation fund would be linked to key performance indicators of the strategy and overall City goals that once reached would reduce the funding formula. Partnerships and Enablers NABI is an important partner of this strategy in many aspects. Key program support, operational contract agreements and potential tactical support of the strategy is envisioned. The attached Innovative Green Construction tactic requires significant support and delivery guidance from NABI. The St. Albert business community also has a role to play. As was mentioned earlier, venture capital and business environment support are critical for initializing the strategy and growing it to meet the needs of entrepreneurs and the city. As part of the Smart City vision for the city and the with intention of becoming a ‘living lab’ ecosystem for entrepreneurs to flourish in, mechanisms will need to be put in place to help support this high order vision. Procurement, patent confidentiality and other business-focused aspects associated with this living-lab vision are not easily supported by a municipal government and public sectors organizations in general. A mechanism such as a municipal controlled corporation could be created that would encourage the entrepreneurial ecosystem envisioned for in St. Albert. A Municipal Controlled Corporation (MCC) is a for-profit corporation that is controlled by a municipality or group of municipalities for the purposes of providing

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a regional municipal service or facility. MCCs are regulated by the Municipal Government Act, Business Corporations Act, Control of Corporations Regulation, and the Debt Limit Regulation. Approval from the Minister of Municipal Affairs must be obtained by the municipalities that want to establish an MCC prior to the establishment of the corporation. MCCs are incorporated under the Business Corporations Act with the Corporate Registry Office (Service Alberta) and are a separate legal entity from its municipal shareholders. This means that MCCs are able to hire staff, administer payrolls, own property and raise capital independent of the municipalities involved. Structured appropriately with a specific mandate and governance structure, an MCC could be the City-controlled business entity that partners with business and supports innovation and the entrepreneurial impetus required to provide the community with the desired outcomes associated with ‘thinking outside of the box’. Utilizing the ‘living lab’ idea and the City as a test bed for an innovative approach to business incubation could potentially provide the MCC with an equity position or revenue stream associated with the development and marketing of a successful innovation or device. Complementary Initiatives Employment Lands: Another consideration for this strategy focused on the best uses for the future Employment Lands to the west of Ray Gibbon Drive. In previous reports to Council the range of assessment revenue and corresponding land uses has been presented. It has been viewed as critical to align the City’s long term non-residential development plans with business incubation. Not coincidentally the highest revenue expectations derive from a land use vision around high end commercial office space. Future Civic Building: The City has publicly expressed the need to acquire additional space for civic administration and other community and business interest users. This has resulted in the City assembling an Expression of Interest poised to go into the market to determine the private sector appetite for an alternatively procured building that would serve the many civic needs. One aspect of the EOI is the establishment of the Centre of Excellence within this envisioned facility. The Incubation Strategy contemplates this potential facility and location in the overall plan. Innovation District: This concept has also been considered in the overall context of the SMART City Master Plan and has some utility in being included in the Incubation Strategy. Ideally a Centre of Excellence would reside in or be the catalyst of an Innovation District. A business park redevelopment program could also be considered in an overall strategy. This program could be built in contemplation of an Innovation District. This aspect of an overall Incubation Strategy would be further developed in

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conjunction with land use planners and developers of future developments in the city. Market Entry Support: As was indicated earlier in the report, this Strategy overlaps and comingles with many other complimentary plans and strategies that the City has conceived to grow the non-residential assessment of the city. The City is positioning itself as a desirable business eco-system and location for investors to consider when contemplating entering into a new market. Target businesses can be regional, national or international. A specific Foreign Direct Investment Strategy is also being developed by the Administration that is designed to market St. Albert on a global stage. Smart City Master Plan: Although already expressed earlier in the report, this Master Plan is the most significant document that the Incubation Strategy needs to look to for guidance in targeting entrepreneurs and their expertise to an eventual goal for the community. Although the most direct goal of the Incubation Strategy is to grow non-residential tax assessment in the city, a consistent and complimentary approach and messaging will serve to enact the Centre of Excellence vision and reputation in the region. Youth: Although not specifically addressed above, young men and women are a targeted demographic in many sub-strategies of the Economic Development Division. Initial contact with a federal program called Futurepreneur that is focused on 18-34 demographic has resulted in an ongoing dialogue regarding the potential to ‘partner and support’ the young entrepreneur components of the incubation strategy. Cultural Initiatives: St. Albert is well positioned with its brand, strong arts and cultural sector, and current business incubation resources to connect these industries together in terms of place and people. Cultural Services have built activities into their 3-year work plans designed to attract and nurture the growing cultural business sector; a need not currently filled within the Capital Region. Conclusion - Next Steps Administration is looking to Council to support the overall concept associated with the Incubation Strategy as described in this report. Significant effort will be required to initialize and formalize the many steps in the Strategy which could also require ongoing support over a prolonged period of time until it becomes self sustaining or the City reaches a pre-determined goal. A near-term plan and a longer work plan timeframe have been contemplated and attached (Attachment 2).

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If this Incubation Strategy outline is accepted, and once the Incubator Policy is approved, Administration would commence developing many of the specific details associated with the overall concept and direction of the Strategy and bring them to Council as required for implementation. Stakeholder Communications or Engagement This Strategy is a compilation of a number of stakeholder inputs. Components of this Strategy have been built with the specific assistance of the Incubation Oversight Committee (IOSC) and then with a small sub committee group that continued once the IOSC was disbanded. The essence of this Strategy, as is outlined in this report, was circulated and/or to presented the following direct stakeholders:

• Northern Alberta Business Incubator • Economic Development Advisory Board • Chamber of Commerce • IOSC • Select Community Business leaders • Select Community Venture Capitalists • Cultural Services

Each stakeholder group found some benefit and potential opportunity for the City in a variety of the aspects of the overall Strategy. Overall the Strategy conceptually reflects the combined opportunities envisioned by each stakeholder group. Implications of Recommendation(s) a) Financial: Repurposing of the annual NABI building fund and current balance to be used

as an Incubation Strategy Fund. Some components of the plan may require stand alone business cases to support the implementation of their intended purpose

b) Legal / Risk:

A variety of agreements and contracts will be required throughout the development and implementation of the Strategy. Any agreements will conform to existing City policies, including delegations of authority.

c) Program or Service: The implementation of this Strategy will impact the Economic Development Division significantly. The development of the details and policies associated with implementing the strategy will fall to this Division to develop and take through to approval.

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d) Organizational: A business incubation specialist or group may need to be established in support of the overall Strategy at some time over the implementation phase. This would come to council for approval through the usual business case and budget process.

Alternatives and Implications Considered Many incubation target alternatives were considered and are represented in Attachment 3. As is indicated throughout this report, this strategy outline and the component parts have been specifically chosen to have the highest opportunity to succeed for the ultimate benefit of the City and the investors in the City. Strategic Connections a) Council’s Strategic Outcomes and Priorities (See Policy C-CG-02)

• CULTIVATE ECONOMIC PROSPERITY: A diversified, robust and resilient economic foundation to support growth and community service delivery.

• CULTIVATE A HISTORIC, CREATIVE, AND ACTIVE COMMUNITY: A vibrant and involved community with a variety of culture, recreation and heritage opportunities.

• CULTIVATE A GREEN COMMUNITY: A healthy natural environment for future generations that preserves and promotes enjoyment, conservation and responsible development.

• CULTIVATE EXCELLENCE IN GOVERNMENT: A responsive, accountable government that delivers value to the community.

• CULTIVATE SUSTAINABLE INFRASTRUCTURE AND SERVICES: A growing community that has balanced development and management of civic facilities, transportation networks and related services.

b) Long Term Plans (e.g. MDP, Social Master Plan, Cultural Master Plan, etc.)

• MDP • Economic Development Strategic Plan (forthcoming)

c) Corporate Objectives (See Corporate Business Plan)

d) Deliver programs and services that meet or exceed our standards

• Exercise strong fiscal management • Ensure our customers are very satisfied

e) Other Plans or Initiatives (Business Plans, Implementation Strategies, etc.)

Smart City Master Plan (forthcoming)

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Attachment(s) 1. Innovative Sustainable Green Construction Services 2. Incubation Strategy Conceptual Time Frame 3. Incubation Strategy Alternatives Considered Originating Department(s): Economic Development Author(s): General Manager Approval:

Guy Boston, Executive Director Guy Boston, Executive Director

City Manager Signature:

Date:

Attachment 1

IOC Meeting Summary Page 1

INNOVATIVE SUSTAINABLE GREEN CONSTRUCTION SERVICES

Background and Discussion Following Council approval of the June 23, 2014 report and the associated Terms of Reference, Administration undertook to recruit members for the Incubation Strategy Oversight Committee. The members of the Committee are as follows:

o Todd Tougas – EDAB Board Member o Brian Stewart – NABI Board Member o Gilles Prefontaine – Councillor o Malcolm Parker – NABI Board Member o Rahim Jamani – Serial Entrepreneur and Angel Investor o Paulett Godin-Donovan – Chamber Board Member o Kelly Jerrot – City Culture Director o Glenys Edwards – St. Albert Public Schools Board Member o Alex Polkovsky - NABI Graduate

Three meetings were held over the winter to examine the challenge of developing an Incubation Strategy for St. Albert.

The Incubation Oversight Committee’s observations can be summarized as follows:

St. Albert can offer significant community support as a value proposition in support of a wide variety of strategies;

Existing business clusters should be utilized as support for an incubation strategy;

32% of the businesses in Campbell and Riel Business Parks fall into two sectors Professional/Technical and Construction;

St. Albert has an existing relationship with NAIT and U of A; and Northern Alberta Business Incubator (NABI) is located in St. Albert and has

experience with this cluster. The most significant of the findings was that St. Albert already has an established cluster of businesses and that this should be leveraged. The Committee envisioned that a collaboration of sorts is probably already occurring between of all the businesses in the predominant clusters in support of infrastructure growth and construction in the region and beyond. The incubation strategy would aim to assist professional, technical and trade focused individuals with their entrepreneurial aspirations. The ultimate goal for St. Albert is the establishment of successful businesses in St. Albert over the long term.

As a result of the committee work and the aforementioned observations, the Committee is recommending that the incubation strategy should focus on ‘Innovative Sustainable Green Construction Services’ or be known as a ‘Professional, Technical and Construction Innovation Hub’. The Committee was unanimous in their support of this theme. The actual name of the strategy will be explored in the next phase of the strategy development as part of the marketing plan.

As was observed by the Committee this theme includes approximately one third of the existing businesses in both business parks. This theme is also consistent with our Smart City Initiative. This incubation strategy was also seen as being complementary with Business Retention and Expansion initiatives as long as businesses have a location to move to when they grow out of incubation. This aspect would serve to meet the ultimate goal of growing the non-residential assessment base and provide jobs. Next Steps There are still many aspects of this strategy that will require further expansion and research to begin a developing a definitive plan. Market sounding on this theme will need to be explored in more detail in collaboration with several partners. Some of the topics for discussion and that would form the ultimate agreement associated with the strategy would include; Confirm target market People who are in the broad definition of the construction industry or support it (professional, technical, trades) and are interested in establishing their own business were seen as a target group. This will need to be explored through existing relationship with NAIT and other potential source pools. Candidates There are many approaches that can be taken in the onboarding of candidates that range from ‘first-come-first-served’ through to a selection/competition process. Program development will determine the model that will be used to solicit/screen candidates. Specific Program Development The general theme recommended by the Committee will need to be supported by a program that appeals to the candidates being targeted. Existing and new offerings will need to be packaged to meet the requirements associated with the strategy. Develop program KPI’s A series of key performance indicators and metrics will be developed that will provide information and allow for analytics in support of the incubation strategy and of the ultimate goal of growing the non-residential assessment base of the City. Develop retention approach A significant component of the envisioned strategy involves retaining the incubated business in St. Albert. This will require a community support network that involves the business sector community, space availability and general business acceleration support while making the transition. Develop community support approach The Committee identified the ‘sense of community’ as one of the major advantages that St. Albert had to support an incubation initiative. A community support aspect to this


Attachment 1

incubation strategy would need to involve building owners, financiers, the business sectors cluster, Chamber of Commerce, et al. Graduation Criteria Specific criteria will be developed to ensure that entrepreneurs successfully graduate to the outside world in an expeditious manner. This will provide turn-over incubator space and accelerate business growth in the community. Use of existing incubator expertise By utilizing the existing NABI expertise and facilities that are already operating in St. Albert, this strategy can be built in stages and potentially start up relatively quickly. Specific space dedicated to this incubation The specific theme program definition and development could lead to the requirement for designated space within the existing incubator. This will be examined as part of the overall strategy development and phasing that will form part of the strategy. Develop marketing plan Once the program has been developed a specific marketing plan will be designed that will generate the significant exposure to the demographic being targeted with this strategy. Utilization of the NABI Capital Building Fund This strategy will contemplate the use of the existing NABI Capital Building Fund. By definition this fund should be used to address any capital needs that may be required to support this strategy for any phase of implementation. Formalize agreement with incubator service provider Leveraging the existing incubator to meet the incubation strategy theme is the preferred option. All of the aforementioned steps will need to be fully examined and considered in their entirety in meeting the intention of strategy. The definition of the program and the delivery of it working towards the goal of growing St. Albert non-residential assessment will be prescribed and executed by all parties.

If Council is supportive of this direction Administration will continue discussions with NABI & NAIT to formulate a specific plan that will focus on this specific theme. Stakeholder Communications or Engagement • Incubation Strategy Oversight Committee recruited from council supported cross-

section of community. • Internet survey of businesses in Campbell & Riel that fit the two NAICS Codes

identified. • Unsolicited meetings with members of the public who expressed interest in the

subject. • Research Chair of New Venture and Entrepreneurship at NAIT.


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JULY 20141 : 6,000

2014 CampbellBusiness Park

Business Licenses

Total: 232 LICENSES

Business License CategoriesBy NAICS SECTOR11, Agriculture, Forestry, Fishingand Hunting (1)21, Mining, Quarrying, and Oiland Gas Extraction (2)22, Utilities (5)23, Construction (45)31, Manufacturing (4)32, Manufacturing (2)33, Manufacturing (1)41, Wholesale Trade (7)44, Retail Trade (12)45, Retail Trade (8)48, Transportation andWarehousing (3)49, Transportation andWarehousing (2)51, Information and CulturalIndustries (3)52, Finance and Insurance (6)53, Real Estate and Rental andLeasing (11)54, Professional, Scientific andTechnical Services (27)56, Administrative and Support,Waste Management andRemediation Services (15)61, Educational Services (9)62, Health Care and SocialAssistance (13)71, Arts, Entertainment andRecreation (13)72, Accommodation and FoodServices (12)81, Other Services (exceptPublic Administration) (30)91, Public Administration (1)

Attachment 1

6667184563

87

7 CITY ANNEX

65676971737577798183

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HERITAGELANE II

GRANDINWOODS

400

4 CITY ANNEX

N.E. 1/4 SEC 29-53-25-4

6 CITY ANNEX082 8697;1;A

082 8697;2;B

17

91MR

101

6 CITY ANNEX

151

HAYES PLHELEN PL

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GAINSBOROUGH AVE

GLENWOOD CRESGRANADAPL

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GREENBRIER CRES

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LECLAIR WAY

JULY 20141 : 6,000

2014 RielBusiness Park

Business Licenses

Total: 205 LICENSES

Business License CategoriesBy NAICS SECTOR

21, Mining, Quarrying, andOil and Gas Extraction (1)22, Utilities (1)23, Construction (46)31, Manufacturing (1)32, Manufacturing (3)33, Manufacturing (10)41, Wholesale Trade (9)44, Retail Trade (18)45, Retail Trade (11)48, Transportation andWarehousing (11)49, Transportation andWarehousing (3)53, Real Estate and Rentaland Leasing (6)54, Professional, Scientificand Technical Services (21)56, Administrative andSupport, WasteManagement andRemediation Services (5)61, Educational Services(10)62, Health Care and SocialAssistance (8)71, Arts, Entertainment andRecreation (6)71, Spectator Sports(2)72, Accommodation andFood Services (3)81, Other Services (exceptPublic Administration) (30)

Attachment 1

Attachment 2

INCUBATION STRATEGY CONCEPTUAL TIME FRAME

Date Details Q1 2016

• Develop the Incubator Fund Utilization Terms of Reference • Flesh out more details of the short term (1-3 year) plan for

the strategy • Engage business community for partners in the Office of the

21st Century concept • Advance the Innovative Green Construction tactic • Market-sound telecommuting concept with potential users

and employers

Q2 2016 • Present the Incubator Fund Utilization Terms of Reference to Council

• Present implementation details • Target and commit to location for the Office of the 21st Century

Q3 2016 • Pilot Office of 21st Century telecommuting centre • Market sound 'problem based' entrepreneur 'call for proposals' • Build sector specific open data sets

2017 • App Hack-a-thon competition

• Build Business Parks Re-development incentives programs

2018 • Implement Business Parks Re-development program

2019 • Develop Innovation District

Attachment 3 Incubation Strategy

Alternatives Considered Vision

St. Albert is regionally renowned as an innovative community that successfully creates, incubates and grows businesses

Overall Strategy…… Developing an independent strategy to accomplish this requires a multifaceted and visionary framework which includes identifying TARGETS to measure success of strategy ie.

Brand recognition

SMART City

80/20

number of jobs created

number of businesses created

types of businesses created

Critical questions to consider

Who owns incubation in St. Albert?? NABI? Ec Dev? Others? What is incubation and how do we incubate and who should do it?

Potential Tactics of Overall Strategy

Consideration of the use and impacts on existing Incubators (NABI, VASA, GenY CEO) must be considered in applicable tactics

1. Build on existing sectors (Prof /Tech, Construction) - Will be a quick win but withlimited job creation, modest space and building utilization, good profile, target NAIT

a. Tactic already identified and proposedb. Set timelines to implementc. Develop contract with NABI to provided. Tie into over-all strategy and schedule to implemente.

2. Guide businesses to exporting - Help existing City business go global which couldhave a significant growth aspect to the business , create jobs, profile and additionalbusiness investment

a. Identify business sectors most likely to be exportb. Build expertise in export processes to assist local businessesc. Develop FDI expertise – Spain 2015d. Determine criteria and approache. Identify target businesses in St. Albertf. Develop symposiums and workshops focussed on selected levels of export

potentialg. Develop toolkit resourcesh. Launch publicly

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3. New sector and incubator development - Niche market development with high potential exposure for City…attract investment due to forward thinking position

a. SMART City (Telecommuting hub, Innovation Centre, Centre of Excellence …et al)

b. Examine completed SMART CITY Master plan directions c. Determine interface opportunities for Incubation/Entrepreneurship/innovation d. Establish a Part 9 entity to help drive innovative investment in St. Albert

independent of the corporation (COSA Innovates*, Risk/ Reward) e. Proposed stepped approach to building the ‘centre of excellence’ f. Utilize existing City-owned building to control leverage and select entry

opportunities (telecommuting, innovation incubation g. Co-location or shared working space with entrepreneurs and administration

4. Celebrate entrepreneurial successes – create high profile of a fertile business

environment in City by targeting and profiling a successful entrepreneur a. SBW trigger or partnership b. Develop a selection criteria and program (proactive vs reactive) c. Develop marketing plan

5. Accelerate entrepreneurial successes – create profile of a positive environment for

promoting and accelerating successful entrepreneur. High potential to create jobs and investment

a. SBW trigger or partnership b. Develop a selection criteria and program (proactive vs reactive) c. Develop marketing plan

6. Regional Collaboration – leverage tools and programs available in the region to ensure

entrepreneurial success for St. Albert entrepreneurs a. Build inventory of programs available in region (Ignite) b. Develop protocol to engage the resources c. Operate within the framework of the new CRB Economic Development Entity

7. Start-up economy – focussed on home-based start-up businesses that have high

potential to grow quickly a. Develop an inventory of home-based businesses b. Target specific home business industries with potential to expand and grow – c. Develop a selection criteria and program d. Develop Marketing plan

8. Youth entrepreneurship - create an environment where young entrepreneurs are

cultivated and encouraged to pursue their passion. Businesses start and flourish in St. Albert also supports residential market

a. Develop creative and focused annual GenY Ceo programs, utilize as flagship for this initiative

b. Formalize Partnership agreement with Junior Achievement, Futurpreneur c. Develop ‘boot camps’ and programs that entice and attract youth to explore

entrepreneur opportunities d. Partner with schools to build relationships and programs (like Bellerose) e. Partner with existing youth groups such as BAM f. Support FCSS initiatives that lend to strategy to develop business skills in youth g. Develop an approach and program that is focused on career fairs h. Youth to develop tourism experiences for visiting children

9. Information Technology and Arts Incubation Synergies - Focus on these sectors as

collaborators of overall strategy to build positive and creative class culture that will foster, support and grow additional creative class opportunities

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Attachment 3

a. Identify these existing sectors and subsectors (Luthiers) b. Work with IT and Arts sector specialists to determine opportunities with existing

sectors c. Work with IT and Arts sector specialists to determine niche market opportunities d. Develop program that attracts and entices sectors to participate in ‘program’ e. Examine VASA as a potential Art incubator f. Work with community to determine ‘maker-space’ opportunities

i. Utilize existing City-owned building to control leverage and select entry ii. Co-location or shared working space with entrepreneurs and

administration Current top five BD/Incubation Targets/Tactics.

1. Professional Technical Construction – already developed 2. SMART City Technology Hub – (Starting with telecommuting) 3. Riel Park Re-development incentive program (incubation and redevelopment) 4. Young Entrepreneurs – GenYCEO, JA schools 5. VASA - like Denver’s ‘Arts in the Rockies’ program)

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Attachment 4

Incubators in the Capital Region

Incubator Mission Statement/Description Location Location Squarefootage Source of funding

ACAMP

ACAMP (Alberta Centre for Advanced MNT Products) is a not for profit organization that provides

specialized services to micro nano technology clients.

We offer a wide range of services to private, technology-based medium size and start-up

enterprises. Our services encompass key areas identified as critical for the commercialization of

MNT products. They are: Marketing & Business Development, Product Development, Packaging

and Assembly, Manufacturing, Test and Characterization.

ACAMP plays a major role in assisting technology companies.

Edmonton and Calgary

undisclosed

Funded by Alberta Entreprise & Advanced

Education, Western Economic Diversification,

Government of Canada.

Offers funding through the Alberta Innovation

Voucher Program

●

Agri-Food Discovery Place

This world-class bio-product processing facility is a unique asset within Alberta's research

environment, and is dedicated to:

- Applied research activities in the areas of food safety, ag-industrial technologies, functional food,

and natural health products, and

- Facilitating commercializable opportunities through initial stages of the value chain

Edmonton, AB

undisclosed

University of Alberta, Faculty of Agricultural

Life and Environmental Sciences partnered

with Alberta Agriculture & Alberta Rural

Development and Olds College

●

Agrivalue Processing

Business Incubator

(APBI)

The underlying purpose of this facility is:

- To assist with the start-up of new food businesses, providing facilities and programs to help

manage the transition from new product development, through commercialization, market launch

and growth in sales, resulting in graduation and the establishment of their own facilities.

- To provide a centre of excellence for agrivalue venture scale up, which will assist established

food manufacturers in new product/process development, refinement, testing and manufacturing

of market entry product volumes.

- To attract product/process development initiatives of established food industry companies to

Alberta.

Leduc, AB

approx. 3,000 square metres of

leasable space

Alberta Agriculture and Rural Development

●

Alberta Innovates

Techonology Futures

Alberta Innovates - Technology Futures (AITF) provides innovation, research and

commercialization services delivering economic and social benefits to Alberta.

We’re here to address the grand challenges and priorities of the province's agriculture, forestry, oil

and gas, environment, health, and pipelines sectors. If you need help with research, new

product development, or a push off the starting line for your business, contact us. If we don't have

the services you need, we'll direct you to others in the innovation system who do.

Edmonton, Calgary, Vegreville,

Devon

undisclosed

Government of Alberta

●

●

●

●

●

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Attachment 4


Alberta Research Council

(ARC)

ARC develops and commercializes technology to give their customers a competitive advantage in

the marketplace. A leader in innovation, ARC operates in a number of facilities in Edmonton,

Calgary and Vegreville, providing its customers with access to world-class research tools. The

organization is widely known for providing solutions globally to the energy, life sciences,

agriculture, environment, forestry and manufacturing sectors.

Edmonton, Calgary, Vegreville,

Devon

undisclosed

Alberta Innovates Technology Futures

●

●

●

●

●

C-FER

C-FER Technologies focuses on facilitating the use of leading edge technology by Oil & Gas and

Pipeline operators involved in the development of very challenging resources, such as heavy oil,

deep water offshore and in the Arctic. Our clients include most of the world's major oil and gas

companies, major pipeline transmission companies, and manufacturers that supply equipment for

these challenging applications.

The company’s staff includes people with significant expertise and industry reputation. The

Edmonton facility contains a unique, world-class laboratory, in which full scale equipment

qualification testing can be performed, at high pressure, temperature, and load conditions, as

well as in sour environments.

Edmonton, AB

New second building includes 3,000

sq-metres of high-bay test area and

1,100 sq-metres of office area.

First building space undisclosed.

wholly owned subsidiary of Alberta Innovates

Technology Futures.

●

●

Cybera

Cybera is a not-for-profit, technical agency that is helping Alberta advance its IT frontiers.

It operates through a strategic investment by its members and the Ministry of Alberta Innovation

and Advanced Education.

Edmonton, AB (& Calgary, AB)

Government of Alberta, CANARIE, WestGrid,

Compute Canada, i-Canada Alliance, Calgary

Chamber of Commerce, Information

Technology Association of Canada

●

Edmonton Waste

Management Centre of

Excellence

The EWMCE provides access to some of the best full-scale waste management facilities in North

America. Through its agreements with our Members, we can provide access to outstanding pilot,

laboratory, and analytical facilities.

Facilities at the Solid Waste Research & Development Facility, the Wastewater Research &

Training Centre, and the Advanced Energy Research Facility have been designed specifically for

scale-up of novel technologies from bench-scale to pilot-scale using process streams from actual

full-scale operations.

Edmonton, AB

Gold Bar Wastewater Research &

Training Centre:

Research Wing: 350 square-metres

Lab: 70 sq-metre

Education facilities: 120-seat lecture

theatre & 40-seat classroom

Clover Bar Solid Waster Research &

Development:

Dry Wing: 1,000 sq-metre

Wet Wing: 1,000 sq-metre

Admin & Training: 40-seat classroom

and 56-seat lecture theatre

City of Edmonton, Alberta Innovates

Technology Futures, EPCOR, AMEC, University

of Alberta, NAIT

●

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Attachment 4


Glenrose Rehabilitation

Hospital

The Glenrose Rehabilitation Hospital is an academic teaching hospital, serving patients of all ages

who require complex rehabilitation to enable them to participate in life to the fullest. As part of

the foundation for success, the Glenrose mission centers around:

- providing excellence and innovation in the delivery of patient and family-centered care and

leading the provision of specialized rehabilitation services,

- creating an inspiring, engaging and safe workplace where all staff can connect to our vision

attracting and retaining the best people by investing in leadership development, enabling staff to

continually learn new skills, leveraging leading-edge technology and measuring and improving

performance,

- collaborating with a wide range of partners to address the needs of patients and the community

and building a strong, integrated system of health-care delivery,

- providing each patient with world-class rehabilitative care through leading-edge research and

education which equips clinicians with the latest knowledge and allows patients to access the

most advanced and innovative care practices.

Edmonton, AB

undisclosed

Governement of Alberta

●

Institute for

Reconstructive Science in

Medicine (iRSM)

The Institute for Reconstructive Sciences in Medicine (iRSM) is an internationally recognized

clinical and research institute focused on medical reconstructive sciences. Established in 1993,

iRSM is a joint initiative of the University of Alberta, Covenant Health and Alberta Health Services,

based at the Misericordia Hospital in Edmonton, Alberta.

Edmonton, AB

undisclosed

Funded by University of Alberta, Covenant

Health and Alberta Health Services

●

Leduc Food Processing

Development Centre

Leduc’s Food Processing Development Centre is a modern, fully equipped pilot plant and product

development facility. It's staffed with experienced food scientists, engineers and technologists.

Services are designed to strengthen and expand the capability of food processors to meet the

challenges of the marketplace through application of new technology and the development of

new or improved products and processes.

The Food Processing Development Centre also houses the Agrivalue Processing Business

Incubator. The incubator is a multi-tenant CFIA approved facility enabling new food processors to

scale-up and commercialize new products, which can be nationally and internationally marketed.

Leduc, AB

undisclosed

Alberta Heritage Savings Trust Fund

●

●

NABI

NABI provides office space, coaching, training, seminar and administrative support services to

help grow existing businesses and kick start new business ideas. For over 25 years now!

St. Albert, AB

41,000 SF

previously through the City of St. Albert, now

primarily through tenant charges.

●

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Attachment 4


NAIT

The department provides support to the various research centres and schools at NAIT. Support

includes:

-providing internal NAIT grant funding

- assisting with the development of grant proposals

- providing project management for ongoing applied research grants

-working with industry and other non-government organizations to ensure the most -appropriate

expertise within NAIT is made available to external partners

-administering external grants from

-the National Sciences and Engineering Research Council (NSERC)

-the Canadian Institutes of Health Research (CIHR)

-the Social Sciences and Humanities Research Council (SSHRC)

-the Canadian Foundation for Innovation (CFI)

-Western Economic Diversification Canada (WED)

-the provincial government

- ensuring legal, financial and technical reporting of applied research activities is timely and high-

quality

Edmonton, AB

undisclosed

Governement of Alberta

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NINT

Located on the fourth floor of the National Institute for Nanotechnology (NINT) on the University of

Alberta campus, the NINT Innovation Centre has 15 units of office and wet or dry laboratory space

for companies with a nanotechnology aspect to their business. It can also provide access to

scientific and engineering expertise and world-class equipment and facilities on a fee-for-service or

other collaborative model.

Edmonton, AB

2,700 square metres

Funded by University of Alberta, National

Research Council and Government of Alberta.

Offers funding from Industrial Research

Assistance Program (IRAP), National Research

Council, Governement of Alberta.

Collaborates with TEC Edmonton.

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Start-up Edmonton

Startup Edmonton is an entrepreneurial campus and community hub. Since 2009, we have been

creating collisions – between developers, designers, makers, founders, investors and mentors –

transforming ideas into companies. We are a non-profit company headquartered in Edmonton,

Alberta.

Edmonton, AB

14,000 SF

Start-up Edmonton is funded by EEDC, Telus,

ATB Financial, Grant Thornton, Intuit.

No funding sources listed on their website.

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TEC

TEC Edmonton operates the TEC Centre, an incubation facility located in the heart of downtown

Edmonton, on the fourth floor of Enterprise Square. The TEC Centre offers flexible lab and office

lease space for tenants to conduct their business and develop their technologies. Benefiting from

being in a cross- disciplinary environment, the tenants may access TEC Edmonton expertise and

programs such as TEC Source Advisory Panel, Alberta Deal Generator, and the TEC Executives in-

Residence.

Edmonton, AB

undisclosed

Funded by University of Alberta and EEDC

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TR Labs/ TRTech

TRTech is an industry-driven, not-for-profit technology commercialization company that fast tracks

ICT innovation to market by working with its 80 industry, government, and academic partners and

clients to discover, develop and commercialize technology. Our mandate is to grow the ICT

industry in Western Canada by supporting your success, while giving you full control over

Intellectual Property.

TRTech employees are a mix of seasoned professionals and up-and-coming (disruptive thinking)

interns/new grads with educations in engineering, computer science and business disciplines. We

can work directly with and for you on projects or we can help you find the right partners through

the larger TRTech community (which has been 26+years in the making).

Edmonton, AB

undisclosed

Funded by University of Alberta and

Government of Alberta.

TR Tech offers funding from Jalisco-Alberta

Program, Javelin, National Sciences and

Engineering Research Council of Canada,

Centres of Excellence for Commercialization of

Research, Mitacs Accelerate Internships and

Elevate Postgraduates, Canadian Institute of

Health Research, Canadian Safety and

Security Program, Canadian Innovation

Commercialization Program, Alberta Innovates

Innovation Vouchers, Alberta International

Business Participant Program, and other

provincial grants outside Alberta.

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: incubation...

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