economic report aug1710

8/8/2019 Economic Report Aug1710

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P R O G R E S S R E P O R T

O U R E C O N O M Y


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ForestT H E

City

While London has traditionally seen steady and stable growth inits economy, the last our years have been characterized by morepronounced highs and lows than ever be ore. When London CityCouncil began developing its our year strategic plan, assessmentgrowth was climbing, unemployment was low and stable, and thelocal economy was robust. By 2009, the City was experiencing oneo the highest unemployment rates in the country, with ongoing job losses in manu acturing, slow population growth and a dramaticdrop-o in new building and construction.

Today, the Citys economy is bouncing back, due in part togovernment investment in economic stimulus projects, along withnew investments by both large international and local companieslooking to establish and expand in London.

Council has developed a comprehensive program to supportLondons local economy, increase job creation and stabilize coststo establish more predictable investment and business conditions.

This report provides an overview o what has been done and isplanned or the uture to improve Londons economy.

LONDON S NEXTECONOMY


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Councils Strategy

In 2007 Council identi ed economic prosperity as a top strategic prioritywith an aim to accelerate the growth o a strong and vibrant economy,and oster private sector investment. Since then Council has taken manysteps towards this objective:

Achieve a stable1. nancial positionPromote2. afordable taxes

Invest in3. in rastructure

Maintain competitive4. utility rates

Invest in5. public acilities

Establish a ocused strategy or the6. downtown

Build on the7. industrial land successes

Strengthen8. regional cooperation 423 square km in theheart of southwestern ontario

10tlargest city in canada

The Changing Economy

Southwestern Ontario has traditionally been aneconomic engine or Ontario. Our rich agriculturallands, strength in the manu acturing sector andclose proximity to the American borders havemade this region an important part o the nationaleconomic landscape.

More recently, the manu acturing sector inSouthwestern Ontario has aced signi cantchallenges with the rise o the Canadian dollarand the restructuring o the automotive sectorin the U.S.

While London shared the struggles acingSouthwestern Ontario, we also had numeroussuccesses. In recent years, London has attractednew oreign direct investments in advancedmanu acturing, ood-processing, in ormation-technology and other knowledge based industriesalong with the growth o many existingLondon businesses.

Cities are increasingly competing in a globalmarketplace or business, talent and investment.For London to succeed in the next economy weneeded a new plan o action.

13%manufacturing

15%trades

15%health care

9%education l o

n d o n s e m p l o y m e n t p r o f i l e :


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Achieve a s tablef inancia l pos i t ion .

The nancial position o the City o London is important totaxpayers and to the economy. To taxpayers, a stable nancialposition means cost containment and lower tax rates. For theeconomy, it means the ability to improve capital nancing,borrow money at attractive rates, and make strategic investmentsto stimulate economic growth.

In 2009, the City o London was ranked by Macleans Magazine asbeing the best managed city in Ontario. This is largely due to theCitys solid nancial position.

London is one o the ew communities in Canada that has aAaa credit rating and weve held it or 33 years straight! Wevesigni cantly reduced our debt load by $500 per householdover ve years, and our reserves have increased by $200 million. The City o London is in a strong nancial position, providing asolid oundation on which all other initiatives social, cultural,environmental and economic can be built.

1.

Promote affordable taxes.

City Council strives to keep residential property tax rates

a ordable and stable or Londoners, and to remain competitivewith other municipalities. For the past ew years, Council hasmanaged to keep tax rate increases steady and reasonable at lessthan 3% per year, providing the city the opportunity to maintainsupport or existing programs and work towards reaching itsstrategic goals.

Londons residential tax rates are lower than the urbanaverage afordable housing prices and low tax ratesassist in attracting talent to our city.

2.

macleans magazine, 2009

BESTMaNagED

CiTY iN ONTaRiO

$42 property tax increase for theaverage london taxpayer in 2010


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Aging municipal in rastructure is a signi cantconcern in many municipalities. Our agingin rastructure requires signi cant and sustained

nancial investment to ensure that it keeps workingor London residents and businesses.

In rastructure investment not only builds and repairsin rastructure but also stimulates the economy and creates jobs. Over the past 10 years, the City o London has invested$1.5 billion in our in rastructure through partnerships with theprovincial and ederal governments. In 2010-2011 over $100million is being invested in Londons roads, water and sewerpipes, parks and recreation acilities through the In rastructureStimulus Funding. This unding advanced the timing o muchneeded li ecycle renewal projects and created debt capacity or

uture investments in the development o Londons economy. This stimulus unding also created an estimated 1,185 jobs.

The City o London was well positioned to take advantage o these stimulus packages through sound scal practices such asmanaging debt levels. By maximizing government unding orthese job creation projects, the City was able to ree up additional

unding over the next two to ve years or other projects.

London has also bene ted rom additional unding provided bythe ederal government through the Gas Tax Fund over the past

ve years. More than $54 million was invested in projects suchas adding new bike lanes, widening Wonderland and WesternRoads, repairing the Ox ord Street bridge, and repairing KingStreet, Horton Street, Highbury Avenue, Base Line Road andWellington Road.

3. Invest in infrastruct ure.

$1.5b ll on investment over 10 years inlondons infrastructure


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The City o London owns or operates its own water, wastewater and hydro utilities. This is a key revenue sourceand strategic advantage or reliable service delivery andcompetitive pricing. Its also a great revenue source orthe City. London Hydro authorized a $20 million specialdividend to the municipality in 2009.

4. Maintain competi t iveut i l i ty rates .

Londoners are getting a great price or their utilities.Our residential sewer charges are the lowest amongcomparable municipalities in Ontario. Our water andhydro rates are also very competitive. Once again thisprovides a bene t to taxpayers who enjoy lower utilitycosts and lower costs o home ownership.

London is also a leader in environmental stewardship.In 2004, the City entered into a partnership with the two

regional water boards to develop a strategic, long-termplan to deliver high quality water while protecting thenatural environment and conserving energy. The program,known as HELP Clean Water, was so innovative that itattracted a $100 million cost sharing investment rom the

ederal and provincial governments or the construction o new acilities. This program will bene t the 500,000 peoplein Southwestern Ontario who use this water supply system.

87CENTS average cost per day for household waterusage, less than one bottle of water!


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Council has directed almost $300 million over the past15 years towards important public acilities.

Public acilities such as the Western Fair and the LondonConvention Centre provide entertainment, cultural andeconomic activities or our city. Public acilities generatebusiness activity and high-density residential development evident in the number o restaurants, shops, apartments andcondos that have sprung up around Covent Garden Marketand the John Labatt Centre.

These acilities help to de ne Londons brand, and enhance thequality o li e or all Londoners.

They also attract visitors to the city the JLC alone attractsover 500,000 visits per year into our downtown core! These

acilities have all contributed to Londons reputation as theentertainment and sports capital o Southwestern Ontario. They also are a key reason why London is chosen to hostworld renowned entertainers and notable events such as the2010 BMO Canadian Figure Skating Championships, the 2010Special Olympics Canada Summer Games and the 2011 TimHortons Brier

$48 million John labat t c entre

$40 million dearness home

$34 mi ll ion london convent ion cent re

$34 million polic e facilitie s

$26 mil lion north london community centre

$25 million central library

$20 mill ion stronach, nichols and kinsmen arenas

$17 million western fair

$4 million covent garden market

venue of the year 2009

JOhNLaBaTT CENTRE

5. Inves t in publ ic fac i l i t ies .


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Council set orth a clear strategy to invest in thedowntown by providing investment incentives,creating a Main Street program, and strengtheningresidential growth.

6. Establ ish a focused s trategyfor the downtown.

The statistics prove that Londons downtown has experiencedsigni cant revitalization. Assessment has increasedconsiderably, there is a growing residential population,heritage buildings are being renovated and restored, andstreet level vacancies have declined. Since 2008, over 1,500new residential units have been created with the value o the building permits totaling $297 million. The assessmentgrowth in the downtown has increased by 20% since 2002.

Our downtown strategy supports business longevity, evidentin retail stores such as Nash Jewellers or Kingsmills which hasbeen a downtown icon in London since 1865. I t also supportsnew development, such as the retail, ofce, business,education and recreation services in the rebranded Citi Plaza. The City has also initiated an incentives program to support,in collaboration with Fanshawe College, the creation o anew downtown campus that will be a centre or arts relatedprogramming. This exciting development will again bene tdowntown businesses and organizations, while attractingmore people into the vibrant core o our city.

37,000 monthly visitors tocovent garden market


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London City Council identi ed the citys industrialland strategy as a critical component o our economicsuccess. Availability o well-priced and servicedindustrial land with easy access to our Internationalairport and highways is an important actor whencompanies decide where to locate and invest.

Since 2001, Council has invested in the acquisition and servicingo 670 acres o industrial land. The Forest City, Innovation andSkyway Business Parks have attracted major investment to the

city. The Citys inventory o industrial land has also allowedit to enter into partnerships with the University o WesternOntario and Fanshawe College to establish a new advancedmanu acturing and green industrial park with dedicatedresearch acilities. These new industrial investments are alsocreating signi cant jobs or Londoners. For example, in January2010, Brose North America announced a $7 million investment

or one o the most advanced automated assembly technologyunits in the automotive industry. In 2009, over 250 new jobswere created with the opening o Hanwha L&C Canada and TheOriginal Cakerie, totaling an investment o $111 million.

The airport has also experienced exciting growth. In 2009, theLondon International Airport received $11 million to establish anInternational Air Freight Transshipment Centre, expected to createup to 150 new jobs and a new cargo hub in London. Our airportis a key economic advantage, providing businesses with cost-e ective gateways to the U.S. marketplace, duty ree tax relie andlow operating costs. In addition, with an annual economic impacto $357 million, it also signi cantly contributes to our economy.

7. Bui ld on theindustr ial land successes.

476,192 passengers served at the londoninternational aiport in 2009


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8. Strengthen regionalcooperat ion.

Londons economy cannot prosper without strongregional and provincial economic strategies. Investmentsthat bene t Southwestern Ontario also bene t London.

The City has accelerated its involvement with key institutionaland private sector partners to attract investment and new ideas. This strategy has already paid dividends. In the 2009 ederalbudget, a $1 billion ederal investment was announced or anew Southern Ontario Development Agency an investmentresulting rom a proposal by the City o London and our partnermunicipalities in the Southwest Economic Alliance (SWEA). Ourpartnerships have also led to new transportation strategieswhere London is positioned as the regional hub or multi-modaltransportation and a key part o the gateway to Canadas NorthAmerican trade corridor.

150number of people living within

a days drive of london


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Londons Next Economy

Today, our economy is showing exciting signso growth and expansion. City Council createdLondon Economic Development Corporation tenyears ago, and with their support, has implemented

many initiatives to stimulate economic growth.With Canadas economy showing signs o recovery,Londoners can eel con dent that we are headedin the right direction.

How do we know that our economy is improving?

Londoners are nding jobs. Less than a year ago, Londonhit a peak unemployment level o 11%, one o the highestin Canada. Already in 2010 this number has stabilized at8.8%, one o the lowest in Ontario. Additionally, o theapproximately 8,000 manu acturing jobs lost in Londonas a result o the economic downturn, over 6,500 new

manu acturing jobs have been created. Companies are choosing London. London beat outSingapore, Germany, Belguim and the US to attractLanxess, a $10 billion German company, to build a newresearch and development laboratory. Since 2005, theLondon Economic Development Corporation (LEDC) hasattracted nearly 40 new companies to London resulting inmore than a $360 million investment and the creation o over 1,300 new jobs.

People are coming to London. Our city is s teadily growing ataround 2% per year. By 2030, Londons population is estimatedto be near a hal -million people. London is also increasinglybecoming a sports, leisure tourism and business destination,attracting an estimated 1.6 million overnight visitors per yearand contributing over $450 million o economic bene t tothe city.

London is a great place to live. Research shows thatcreative, diverse cities with a great quality o li e enjoy greatereconomic prosperity. London is consistently recognized asbeing a great place to live, work and do business. In 2010,Money Sense magazine ranked London as being the 12 th best city in Canada to live, out o a total o 154 cities. Londonwas 4th in the small cities category recognizing best qualityo li e in North America by Di Magazine. London is also oneo Canadas smartest cities, according to Macleans magazinessmartest cities survey or 2010.


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Invest ing in the Future of Londons Economy

Using the Economic Development Fund o over $50million set aside by London City Council in 2009, the Cityis investing in some o the hottest and astest growingindustry sectors, including digital gaming and greentechnologies. This unding is now being leveraged toobtain ederal and provincial unding to urther expandeach o these initiatives.

Most o these projects are public/private par tnerships,building upon the extensive relationships between localindustry, educational institutions and government. Theseinvestments, capitalizing on talent, technology andin rastructure, will position London to attract new businessand support the growth and development o existingbusinesses in the uture.

Airport/401/402 Gateway capitalizing on new regulationsdesignating the London International Airport as a Duty Free Zone,along with the new Open Skies agreement with the EuropeanUnion, this plan includes a acilities expansion or cargo. This isa partnership between the London International Airport, City o London and the ederal government. I t also includes interchangeenhancements through the 401/402 corridor at VeteransMemorial Parkway and Wonderland Road with support romthe provincial government, helping to make London a pre erred

destination and building the logistics hub in our region.

Wastewater Validation Technology Centre the City o London, Trojan Technologies, and Western are creating a leading centrein North America or industrial water treatment technology,commercialization, validation and testing. Located in GreenwayPark, this acility will include research and design labs as wellas teaching space. Other major water companies are alreadyexpressing interest working in collaboration with the newtechnology centre.

The City o London will invest $3.8 million in this project, withan additional $1 million provided by Trojan. The project willinitially create 50 to 60 new jobs. The City will be applying toboth the ederal and provincial governments or unding oradditional phases.

Advanced Manu acturing and Green Technology IndustrialPark - In partnership with UWO and Fanshawe, this park willintegrate research and development acilities with educationalinstitutions, government agencies and the private sector to createa community o advanced industries. The rst tenant will be thenew WindEEE Dome, the only acility in the world investigatingall aspects o wind energy, engineering and the environment.


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International Composite Research Centre A World LeadingCentre or lightweight materials, this research centre will be apartnership with Western, the Fraunho er Institute in Germany andGerman manu acturer Die enbacher, attracting companies romaround the world in de ence, aviation, automotive, medical device,consumer, leisure and building products.

The City o London will invest $10 million and Western $5 millionover the next three years to establish the centre, and will seek outan additional $20 million rom senior levels o government. The

centre is expected to create 20 new jobs initially, with up to100 possible jobs in uture phases.

The centre will position London as a world leading centre in thisindustry, attracting companies and resarchers to develop theirtechnologies.

Fanshawe College Downtown Campus This is an excitingexpansion or Fanshawe College, creating a downtown campus

or Applied and Per ormance Arts in partnership with communityarts, educational institutions and the private sector. Fanshawe willalso be able to urther expand a growing roster o programs wherethere is already high applicant and employer demand, includingdigital media.

The City will invest $10 million in this initiative, along with otherdowntown retro t incentives. The downtown campus will createup to 75 new jobs and attract up to 1,500 students to thedowntown core.

Digital Media Centre o Excellence London has applied or andbeen shortlisted or unding through the Canadian Centres o Excellence or Commercialization and Research (CECR) to establisha Digital Media Centre o Excellence. This initiative would provide aplat orm or game developers across Canada to converge, integrate,licence and commercialize technologies while enhancing Londonsposition as a top digital media destination.

The City o London has committed $5 million over ve years and i the unding application is success ul, will create up to 100 new jobsin the short term.

City-Wide Medical Device Strategy London is one o the key citiesin Ontario or the medical device industry, creating an opportunity

or continued growth and development in partnership with theLEDC, WORLDiscoveries, The University o Western Ontario, Ivey, TechAlliance, Lawson, Robarts, the Stiller Centre, the NRC, Fanshawe

College and the private sector. This initiative will build support andopportunity or existing companies and provide a mechanism ornew technologies and research rom London institutes. It will alsoposition London to attract new investment and employment in themedical device industry.

Other Investments Underway

Innovation Industrial Park, Phases II, III and IV developments The City o London has been investing in its industrial land strategy

or over x years, success ully attracting new companies andinvestments by having serviced industrial land ready or newdevelopment. This strategy will continue with uture phases o Innovation Park along the Veterans Memorial Parkway.

Food Innovation Strategy London is one o the best locationsin Ontario or supply and ood-processing capabilities withextensive opportunities or uture growth. This strategy will osterentrepreneurial growth in the agri- ood industry.

The momentum or economic development in London is strong andwill help move our economy orward through these times o change.City Council has set out an aggressive economic action plan, but wecant do this alone. As a community we need to act together towardsour collective goal o economic prosperity.


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Notes :


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For more in ormation, please contact:

Anne Marie DeCicco-BestMayor

Jef Fielding,Chie Administrative Ofcer

City Hall 300 Du erin AvenueLondon, ON N6A 4L9 T: 519-661-2500

www.london.ca

Peter WhitePresident & CEO

London EconomicDevelopment Corporation380 Wellington Street, Suite 701London, ON N6A 5B5 Tel: 519-661-4545

www.ledc.com

economic report aug1710

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