waterloo region economic development study: assessment of economic development services and the...
DESCRIPTION
The Region of Waterloo and all seven Area Municipalities jointly commissioned a study in 2012 to look at economic development issues in Waterloo Region. Malone Given Parsons Ltd. was retained to address two key issues: Is the current approach to delivering economic development services in Waterloo Region working as well as possible? Are there any significant gaps, overlaps and opportunities for improvement? What should the Region and Area Municipalities be doing to ensure an adequate supply of employment lands is available to support economic development? In particular, should municipalities in Waterloo Region be involved in buying, developing and selling employment lands and, if so, what is the best approach for doing that?TRANSCRIPT
Prepared by:
Prepared For:
April 2013Region of Waterloo
WATERLOO REGION ECONOMIC DEVELOPMENT STUDY:
ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES ANDTHE PROVISION OF EMPLOYMENT LANDS
Waterloo Region Economic Development
Study: Assessment of Economic
Development Services and the Provision of
Employment Lands
Prepared By:
Malone Given Parsons Ltd.
140 Renfrew Drive
Suite 201
Markham, Ontario
L3R 6B3
www.mgp.ca
In Association With:
Perimeter Public Affairs
54 Bathgate Drive
Toronto, Ontario
M1C 1X6
www.perimeterpublicaffairs.com
Prepared For:
The Region of Waterloo
150 Frederick St.
Kitchener, Ontario
P.O. Box 9051, Station C
N2G 4J3
Date: April 2013
12-2116
MALONE GIVEN PARSONS LTD.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................... I
1.0 INTRODUCTION .................................................... 1
1.1 Introduction ................................................................................. 1
1.2 The Assignment ........................................................................... 2
2.0 ECONOMIC CONTEXT ......................................... 5
2.1 Growth and Competitiveness .................................................... 7
2.2 Waterloo Region’s Business Advantage ................................... 9
2.3 Policy Context ........................................................................... 14
2.4 Growth Pressure & Opportunities for Waterloo Region ......... 18
3.0 EXISTING ECONOMIC DEVELOPMENT
FRAMEWORK ...................................................... 21
3.1 Overview of Existing Framework & Responsibilities .............. 21
3.2 Stakeholder Commentary ....................................................... 25
3.3 Gaps and Redundancies ......................................................... 35
3.4 SWOT Analysis of Current Waterloo Region Economic
Development Framework ........................................................ 44
4.0 COMPARATIVE ANALYSIS: COMMUNITIES AND
BEST PRACTICES .................................................. 49
4.1 Context for Comparative Analysis .......................................... 49
4.2 Regional Economic Development .......................................... 50
4.3 Comparator Community Summary ........................................ 57
5.0 FRAMEWORK OPTIONS ...................................... 73
5.1 Economic Development Requirements ................................. 73
5.2 Organizational Options ............................................................ 76
5.3 Evaluation of Options; Risk and Opportunities ...................... 84
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6.0 EMPLOYMENT LAND OPTIONS ........................... 89
6.1 Industrial and Business Park Lands .......................................... 89
6.2 Ensuring Land Supply ................................................................ 92
6.2.1 Need for a Risk Perspective ........................................ 92
6.2.2 Estimates of Supply and Demand for Employment
Land ................................................................................ 93
6.2.3 Role of the Private and Public Sectors ...................... 94
6.2.4 Alternative Approaches to Providing Industrial &
Business Park Lands ...................................................... 95
7.0 CONCLUSIONS, RECOMMENDATIONS AND
IMPLEMENTATION ............................................ 103
7.1 Conclusions .............................................................................. 103
7.2 Recommendations .................................................................. 105
7.3 Implementation ....................................................................... 108
APPENDIX A STAKEHOLDER CONTACT LIST
APPENDIX B LEGAL EXTRACTS
APPENDIX C COMPARATIVE ANALYSIS
APPENDIX D EMPLOYMENT LAND USE MAPS
APPENDIX E WATERLOO REGION ECONOMIC DEVELOPMENT
EXPENDITURES
APPENDIX F BIBLIOGRAPHY
APPENDIX G EXISTING LOCAL ECONOMIC DEVELOPMENT
SERVICES
LIST OF FIGURES
Figure 2.1 Waterloo Region within the Western GGH Context ........................................ 6
Figure 2.2 Economic Activity Index....................................................................................... 9
Figure 2.3 Composite of Regional Official Plan Maps 2, 3a-e & 7 ................................ 16
Figure 5.1 Development Framework: Foundations, Strategies and Outcomes ......... 75
Figure 6.1 Regional Employment Lands ............................................................................. 90
Figure 6.2 Vacant Industrial Land Prices and Development Charges (per acre) ..... 91
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LIST OF TABLES
Table 2.1 Population Forecast ............................................................................................... 7
Table 2.2 Employment Forecast ........................................................................................... 8
Table 2.3 Population and Employment Forecast (as per Waterloo New Official Plan,
2011) ........................................................................................................................................ 17
Table 3.1 Shared Responsibilities ......................................................................................... 22
Table 3.2 Responsibilities Not Shared ................................................................................. 22
Table 3.3 Gaps and Redundancies ................................................................................... 43
Table 3.4 SWOT Analysis ....................................................................................................... 46
Table 4.1 Economic Development Then and Now ......................................................... 51
Table 4.2 Selected Southern Ontario Economic Development Delivery Model Types
.................................................................................................................................................. 53
Table 4.3 Communities with Region, Multi-Tiered Economic Development Structures
.................................................................................................................................................. 58
Table 4.4 Communities with Multi-Tiered Structure – Ontario ........................................ 62
Table 4.5 Selected Municipal External Economic Development/Real Estate
Development Corporation .................................................................................................. 66
Table 4.6 Summary Best Practices ...................................................................................... 69
Table 5.1 Proposed Economic Development Framework Options .............................. 82
Table 5.2 Evaluation of Options; Risk and Opportunities ................................................ 85
Table 6.1 Region of Waterloo Industrial and Business Park Vacant Land Inventory –
2009 .......................................................................................................................................... 89
Table 6.2 Employment Land Development Options ....................................................... 98
Table 6.3 Evaluation of Employment Land Options; Risk & Opportunities ................ 100
Table 7.1 Proposed High Level Implementation Plan ................................................... 108
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EXECUTIVE SUMMARY
INTRODUCTION
Waterloo Region has enjoyed several decades of sustained economic growth.
Over the past few years, there has been a growing debate as to the best approach
to ensuring continued economic growth within the Waterloo Region. This debate
has focused on three main questions:
Is the current framework for the governance and delivery of economic
development meeting the needs of the regional economy?
What other options should be considered?
In particular, how can the constituent Municipalities ensure that there is a
continual renewal of the available supply of employment lands?
This study addresses these three questions and provides options on both a
framework for economic development, and approaches to employment land
development and sale.
ECONOMIC CONTEXT
The study addresses the current economic and policy context facing Waterloo
Region, and provides an overview of the regional growth expectations; its
competitiveness relative to other Ontario regions; the planning policies that will
influence goals and delivery of economic development; and the supply and
provision of employment lands.
Waterloo Region is part of the Greater Golden Horseshoe (GGH) urban complex
with a combined current population of 9 million people. Yet Waterloo Region
remains separate and distinct economically, historically, and culturally from the
main urban mass of the Greater Toronto Area (GTA). The region’s economy is
growing and performing well relative to its Ontario competitors. Typically
associated with high tech companies, Waterloo Region has several other business
clusters that have demonstrated exceptional success including; advanced
manufacturing, financial services, food processing and life sciences. Waterloo
Region’s three post-secondary institutions; the University of Waterloo, Wilfrid
Laurier University, and Conestoga College, collectively are recognized
internationally for their research, innovation and talent creation capabilities.
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The current planning and economic development policy framework for Waterloo
Region is supported by the Province of Ontario’s Places to Grow Act, the
associated Greater Golden Horseshoe Plan, and the Region of Waterloo’s Official
Plan and 2011-2014 Strategic Plan. The Growth Plan identified three areas in
Waterloo Region as significant urban growth areas; Downtown Kitchener,
Uptown Waterloo and Downtown Cambridge.
The Growth Plan also recognizes the importance of protecting employment,
promoting economic development and maintaining economic competitiveness.
Waterloo Region’s Official Plan does not address economic development beyond
“fostering and facilitating growth”, and makes no reference to a need for an
economic development strategy, which the region does not yet have.
The 2011-2014 Region of Waterloo Strategic Plan identified the immediate need
for action on three economic development initiatives:
1- Make the East Side Employment Lands development ready;
2- Continue to identify partnership opportunities that foster innovation
and economic development; and
3- Strengthen the coordination and implementation of economic
development activities across the region through clarification of
municipal and stakeholder roles and responsibilities.
The Greater Golden Horseshoe Plan projects significant growth in the western
GTA and Hamilton, and significant growth is also expected for the outer ring
portion of the GGH which includes Waterloo Region. The latest projections for
Waterloo Region have the population rising from 526,000 to 729,000 and
employment rising from 282,000 to 366,000 by 2031. While much of the GGH
employment growth is destined for the 905 area (Halton, Peel, York and Durham
Regions), large 905 land banks are approaching build out and new strategic land
locations are not being protected for future employment use. Waterloo Region, as
the largest outer ring municipality should see considerable interest in its
employment lands for office, industry and business services.
EXISTING ECONOMIC DEVELOPMENT FRAMEWORK
Despite Waterloo Region’s many strengths and assets, there are a number of
structural weaknesses in the current economic development framework. The
current economic development framework does not fully meet the needs of the
regional business clusters, other economic development stakeholders, and the
public at large.
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Examples of this underachievement include: gaps in, and absence of, useful
regional economic data; dated and often confusing marketing and promotion
initiatives; lack of resources to deliver basic economic development service across
Waterloo Region; poor stakeholder comprehension of their contribution to
economic development; lack of trust vertically and horizontally across the region;
and the absence of a coherent multi-level regional economic development
strategy.
Despite this fragmented and poorly coordinated economic development network,
there is consensus among stakeholders on the need for a regional approach to
economic development, on their willingness to participate in regional economic
development, and that the Region of Waterloo should provide leadership in
delivering this approach.
COMPARATIVE ANALYSIS: COMMUNITIES AND BEST
PRACTICES
Three sets of comparator communities with relevance to the Waterloo Region
situation were evaluated: multi-tiered regional economic development
organizations; existing multi-tiered municipalities in southern Ontario; and single-
tiered municipalities with economic development and/or real estate development
subsidiaries. Results of this analysis indicate that:
1. Business success is more commonly associated with a regional cluster
approach;
2. Regional business clusters require engagement at a wider regional level;
3. Single-tier municipalities favour external economic development
organizations; and
4. Two-tier regional/local municipalities favour a combination of internal
and external economic development organizations.
REGIONAL ECONOMIC DEVELOPMENT STRATEGY
The first requirement for a new approach to economic development is the creation
of a Regional Economic Development Strategy that takes advantage of the
inherent strengths of the region and which effectively deploys resources to ensure
a sustainable and growing regional economy.
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Waterloo’s eight municipal governments, in concert with the major economic
stakeholders, should embark immediately to establish a clear and effective
strategy that will create a new economic vision for Waterloo Region, and which
will provide a renewed consensus on the means of achieving the vision.
FRAMEWORK OPTIONS
A number of viable framework options for the delivery of economic development
services within Waterloo Region were identified.
All are potentially implementable within the existing governance structure in
Waterloo Region. Criteria for developing the options were drawn from the current
local and regional context, current economic development issues, and from the
experiences of other jurisdictions with similar issues and best practices.
Five options for delivering economic development services were defined along a
continuum of increasing change and intervention. These are:
1- The status quo;
2- Enhanced regional alignment and coordination;
3- Regional Economic Development Corporation (jointly owned by all eight
Municipalities), with shared responsibility for implementing an economic
development strategy with local Municipalities;
4- Regional Economic Development Corporation (jointly owned by all eight
Municipalities), with sole responsibility for implementing all aspects of
an economic development strategy; and
5- Consolidation of all economic development functions and services within
a department of economic development within the Regional Municipality
of Waterloo.
Our preferred approach is Option 3, a single non-profit agency that is separate
from, but controlled by, the eight Municipalities and is responsible for
implementing regional economic strategy, marketing and promotion, coordination
of corporate relationships, and advocacy with other levels of government. It
would not be directly involved in the development and/or sale of the land. This
Option would see the local Municipalities retain “non-regional” economic
development functions.
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EMPLOYMENT LAND OPTIONS
The current model for the provision of employment land is a mix of municipally
and privately owned land that has been successful in meeting most but not all
local employment land demand. With its educational, entrepreneurial, cultural,
and transit assets and lower costs, Waterloo Region will become an increasingly
attractive location for new or expanding business relative to the western GTA
Municipalities. The current employment land supply in Peel and Halton will be
depleted within 10 years, resulting in rising prices in these areas relative to
Waterloo Region.
It is an essential requirement of successful and transformational economic
development that there be a sufficient supply of available employment land at all
times. Our preferred approach is to create and utilize a Special Purpose
Development Corporation to develop strategic employment lands on the east side,
including those adjacent to the airport and other strategic employment lands as
determined. Existing municipal roles in employment land development would
remain intact. Over the longer term, the strategy should be to ensure that the
major role of developing and selling employment lands transitions to the private
sector.
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1.0
INTRODUCTION
Waterloo Region has a strong economy that has been performing
well. However, there are challenges and opportunities that lie ahead.
This report identifies alternative approaches for the governance and
economic development services. In particular, the study evaluates
alternative approaches for ensuring an appropriate supply of
available employment land.
1.1 Introduction
Waterloo Region has benefited from its many strengths and from its strong brand
as a place of profitable enterprise, creative and industrious people, an intellectual
nexus of thought leadership, a diverse high quality lifestyle, and effective
community leadership. It benefits from a global perspective that is reflected in the
destination of its university graduates and the market reach of many of its local
companies. It also benefits from a local focus that has led to continual
improvements to urban infrastructure and civic amenities.
Over the past few years, there has been a growing debate as to the best approach
to ensuring continued economic growth within the Waterloo Region. This debate
has focused on three main questions:
Is the current framework for the governance and delivery of economic
development meeting the needs of the regional economy?
What other options should be considered?
In particular, how can the constituent Municipalities ensure that there is a
continual renewal of the available supply of employment lands?
Implicit in these questions is: how can the Waterloo Region stay aggressively
ahead of the curve and stake out its position as a location of choice for the best
companies in the nation, the continent, and the world?
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In the course of completing this review of the structure and function of economic
development services in Waterloo Region, Malone Given Parsons Ltd. (MGP)
met with representatives from over 40 organizations involved in, or with,
economic development across Waterloo Region. As expected, a wide range of
opinion was offered on the local state of economic development, including: the
decline in traditional manufacturing; the emergence of education, research and
innovation as drivers of economic development; other emerging business clusters;
and the role of all three orders of government, federal, provincial and municipal in
economic development.
Two clear themes emerged from this input. The first theme is that the region has a
strong economy that has been performing well. The region has exhibited dynamic
growth over the past several decades, rising standards of living and incomes,
healthy local business communities, diverse and engaged sectors, place-based
advocacy groups, world class local post secondary institutions, and a rare
resiliency in the regional economy, given difficult international circumstances.
The second theme sees a region that is not fully capitalizing on its strengths and
consequently is at risk of being less dynamic, competitive and successful. There is
a lack of coherent strategy and lack of effective coordination amongst the many
organizations involved in economic development. This has resulted in missed
opportunities, loss of at least one major company, declining national significance
of remaining head offices, fragmentation of local service delivery, and internal
competition rather than cooperation and collaboration.
1.2 The Assignment
MGP, in association with Perimeter Public Affairs, have been retained by the
Region of Waterloo together with the 7 local Municipalities to evaluate and
present options on how economic development is delivered regionally through a
network of approximately 34 agencies, providing a range of services at the
community, local, regional and international levels.
The terms of reference for the study, the MGP proposal, and subsequent
discussion achieved consensus on the following project priorities.
Questions that need to be answered included:
1. Economic Development
Who is doing what, and is there overlap?
Where are the gaps, and what improvements can be made?
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What’s working, and what needs improvement?
What is the experience of comparator communities, and what is considered
to be best practice?
What unique approach can Waterloo Region take?
Consider the practical options for organizing the creation and implementation
of an economic development strategy.
2. Employment Land
How should municipalities be approaching the employment land
development issues?
What is the role of greenfield employment versus infill & intensification of
existing sites?
How can an appropriate supply of available vacant employment land be
ensured?
The study approach involved the following tasks:
Review of the organizational framework for economic development;
Interviews with key stakeholders;
An assessment of existing performance gaps, overlaps & resources of the
existing economic development framework;
Review and analysis of the economic development approaches taken by
selected comparator communities;
Identification of the requirements for economic development; and,
Identification and evaluation of the governance and organization options for
delivery of economic development and for ensuring land supply.
Organization of the Report
This report is organized in the following format:
Section 2: Context on regional economic position; planning policies; and,
issues surrounding the provision of employment land;
Section 3: Overview of the existing economic development framework
including regional and municipal responsibilities and mandates;
Section 4: Comparator communities and best practices and lessons;
Section 5: Overview and detailed description of proposed framework options
including an evaluation of each option considering both the risks and
opportunities;
Section 6: Overview and detailed description of proposed land development
options including an evaluation of options; and,
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Section 7: Conclusions and recommended approaches, including a high level
implementation sequence.
Definitions
The geographic region encompasses 7 local municipal jurisdictions: the City of
Waterloo; the City of Kitchener; the City of Cambridge; the Township of Wilmot;
the Township of Wellesley; the Township of Woolwich and the Township of
North Dumfries. In addition the Regional Municipality of Waterloo provides
services and infrastructure to all local municipalities.
Herein, “Waterloo Region” or the “region” refers to the geography encompassed
by the 7 municipalities. The “Region of Waterloo”, “ROW” or the “Regional
Government” refers to the Regional Municipality of Waterloo.
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ECONOMIC CONTEXT
Waterloo Region’s economy is growing and performing well in terms of its Ontario competitors;
While Waterloo Region is recognised as a significant urban growth centre for the Province, it does not have a regional economic development strategy; and,
In the medium and long term, the rapid growth of the western GTA municipalities presents a significant strategic opportunity for Waterloo Region.
Waterloo Region, located in the economic heart land of Canada, has a unique
geographic position. While it is situated within the Greater Golden Horseshoe,
which encompasses a population of 9 million people, and has very close linkages
to the larger economy, Waterloo Region remains separate and distinct from the
main urban mass of the Greater Toronto Area. It has unique history and cultural
attributes that enable it to benefit from its proximity to the Toronto economy
without being overwhelmed by its urban neighbours to the east. Its proximity to
Toronto provides important economic and transportation linkages and an easy
locational legibility to potential markets beyond Canada. At the same time, its
separateness provides a high quality of life, distinct character, competitively
priced economic inputs, and a world recognized quality of technical talent being
produced by three post-secondary institutions.
Before focusing on economic development in Waterloo Region, it is helpful to
review the Region’s economic importance and the policies that relate to economic
development.
The following section provides:
An overview of the region’s growth expectations;
It’s competitiveness with other Ontario regions;
A review of planning policies that are most salient to the goals and delivery
of economic development within Waterloo Region; and,
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An overview of the issues surrounding the provision of employment land
throughout the region.
Figure 2.1 below maps Waterloo Region in the context of its surrounding
economic competitors: Guelph; Brantford; Hamilton; and the western GTA
municipalities.
Figure 2.1 Waterloo Region within the Western GGH Context
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2.1 Growth and Competitiveness
The series of tables that follows show the expected growth in population and
employment within the Waterloo Region and its surrounding competitor
municipalities. From this, the following salient observations can be made:
Waterloo Region is generally similar, or greater, in population to the nearby
cities that are competitors including the urban areas that compose Halton
Region.
Waterloo Region has greater expected growth in both population and
employment than nearby cities and regions, although Halton Region will
grow somewhat faster.
The western GTA regions of Halton and Peel can be considered as
competitors for business investment, but also as sources of business
establishments that could migrate west to Waterloo Region. Costs of labour
and land are generally lower in Waterloo Region than in the western GTA
and Waterloo Region has other attractions; universities, high quality city,
small town and rural environments.
Table 2.1 Population Forecast
2011 2021 2031 2011-2031 % Increase
Waterloo Region
526,000
623,000
729,000 28%
London 366,140
404,600
443,500
17%
Hamilton
540,000
590,000
660,000 18%
Halton Region
520,000
650,000
780,000 33%
Peel Region
1,320,000
1,490,000
1,640,000 20%
Brantford
97,925
107,258 n/a n/a
Guelph
125,000
148,000
175,000 29%
Source: Waterloo Region, Hamilton, Peel Region and Halton Region Population
Forecasts based on Places to Grow. Brantford Official Plan 2011; Guelph Official Plan
Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and,
City of London Employment, Population, Housing and Non-Residential Construction
Projections 2011 Update (Draft 2012) by Altus.
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2011 2021 2031 2011-2031 % Increase
Waterloo Region
282,000
324,000
366,000 23%
London
189,674
211,630
229,337 17%
Hamilton
230,000
270,000
300,000 23%
Halton Region
280,000
340,000
390,000 28%
Peel Region
730,000
820,000
870,000 16%
Brantford
47,685
54,910 n/a n/a
Guelph
74,680
88,790
100,390 26%
Source: Waterloo Region, Hamilton, Peel Region and Halton Region Population
Forecasts based on Places to Grow. Brantford Official Plan 2011; Guelph Official Plan
Sept, 2012 & Employment Lands Strategy Phase 1, by Watson & Associate, 2008; and,
City of London Employment, Population, Housing and Non-Residential Construction
Projections 2011 Update (Draft 2012) by Altus.
The Conference Board of Canada “Metropolitan Outlook 2: Economic Insights
into 15 Canadian Metropolitan Economies: Summer 2012” indicates that:
Waterloo Region will achieve the highest economic growth in Canada among
medium-sized cities in 2012.
The region’s manufacturing output is expected to increase 4.5 percent in
2012.
Gross Domestic Product will grow in Waterloo Region by 3.3 percent in
2012, down from 3.9 percent in 2011.
Unemployment in Kitchener, Waterloo and Cambridge is projected to fall
from 6.8 percent in 2011 to 6.2 percent by the end of 2013.
The CIBC World Markets' Metropolitan Economic Activity Index, 2012 places
Waterloo Region as the third strongest economy among Canada’s largest 25 cities
for the third quarter of 2011. This Index was based on nine key macroeconomic
variables and drivers of economic growth; population growth, employment
growth, unemployment rate, full-time share in total employment, personal
bankruptcy rate, business bankruptcy rate, housing starts, MLS housing resales,
and non-residential building permits. The Index is designed to capture the rate of
change in the level of economic activity among Canada's largest 25 cities.
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the third quarter of 2011. Waterloo Region has been represented as Kitchener
CMA and has been ranked third behind Toronto and Edmonton. In comparison,
Hamilton is ranked 13th and London 22
nd.
CIBC World Markets Inc. attributed the region’s success to a combination of:
Relatively strong employment momentum;
Strong housing and real estate markets;
High quality jobs, important for income growth; and,
Low rate of business bankruptcies.
Figure 2.2 Economic Activity Index
Source: CIBC (Canadian Cities: An Economic Snapshot Toronto Continues To Lead the Pack,
January, 2012)
2.2 Waterloo Region’s Business Advantage
Many factors have given Waterloo Region a competitive edge, leading to the
successes it continues to experience:
Its strategic position west of Toronto;
A labour force and consumer market of 2.7 million people within a 45
minute drive;
Ready access to major transportation corridors, and three Canada-US border
crossings;
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Access to national railroads;
Access by regional transit (GO Transit) to the City of Toronto downtown;
Access to the Region of Waterloo International Airport and close proximity
to Toronto’s Pearson International Airport;
A low corporate tax rate and low energy prices; and,
World class education/research institutes and a multicultural workforce with
advanced skills.
The region has received some high accolades for excelling in a range of sectors:
The City of Waterloo was named Top Intelligent Community 2007 by the
Intelligent Community Forum;
City of Cambridge named IBM’s first Smarter City in Canada (2010);
The Tannery District in Kitchener awarded best overall project in Canada by
the Canadian Urban Institute (2011);
Waterloo was ranked top 10 by FDI Magazine’s American Micro Cities of
the Future in 6 of 8 categories (2011/2012);
Canada’s Technology Triangle was named one of Canada’s Top Metro Areas
by Site Selection magazine; and,
The Real Estate Investment Network named Canada’s Technology Triangle
as the Top Ontario Investment Town 2009-2014;
While being predominantly associated with the high tech industry, Waterloo
Region boasts exceptional success and expertise in a variety of industries. We
have captured some of the prominent strengths of these industries, along with
listing some of the key industry players.
High Tech Industry
With regard to the tech sector in Waterloo Region, Communitech has highlighted
some noteworthy statistics;
The tech sector generates $25 billion revenue/yr;
There are approximately 1000 tech firms located in the Region;
There are in excess of 400 burgeoning start-ups (significant given a
population of approximately 500,000);
There are 30,000 employed at tech firms;
There are 1,600 open tech jobs;
123% growth rate in software careers;
Over $0.5 billion in acquisitions in 2010;
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Waterloo Region is home to;
o Canada’s largest tech company – BlackBerry;
o Canada’s largest software company – Open Text;
o World’s leading projection technology company – Christie Digital;
o Canada’s largest satellite company – Com Dev;
A new startup company is established every day at the Communitech hub;
and,
More than $84 million raised by companies in 2011 at the Communitech hub
alone.
Educational Institutions and Talent
Waterloo Region boasts exceptional access to three highly acclaimed post-
secondary education institutions; Wilfrid Laurier University, the University of
Waterloo and Conestoga College, and their 74,000 post-secondary students. Some
highlights include:
The University of Waterloo has the largest cooperative education program in
the world;
The University of Waterloo is repeatedly recognized as Canada’s most
innovative university and topping the categories for Best Overall and most
likely to produce leaders of tomorrow;
More than 22 percent of all spin-off Canadian IT companies have originated
in University of Waterloo incubator programs;
The University of Waterloo is home to the Waterloo Centre for Automotive
Research (WatCAR), supporting major breakthroughs and innovations in the
automotive sector;
The David Johnston Research & Technology Park is one of the newest
research parks in Canada and is uniquely located on the University of
Waterloo’s North Campus. Designed to accommodate 1.2 million square feet
of office space on 120-acres (49 hectares), the Research Park will house
thousands of researchers, create new technology jobs, and generate billions
of dollars in economic impact;
“In the last four years,” the University of Waterloo has “developed 184
projects, they’ve set up 20 companies, they’ve hired 200 people and they’ve
brought in venture capital of $30 million”, Geoff McBoyle, associate vice-
president of academic and strategic initiatives at the University of Waterloo;
Wilfrid Laurier is one of Canada’s fastest growing universities and is
consistently ranked among Canada’s top schools in its category;
The School of Business & Economics (SBE) at Wilfrid Laurier University is
one of the largest and most innovative business schools in Canada; and,
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Conestoga College ITAL offers over 60 career-related programs, and the
University’s graduates contribute more than $1 billion to the local economy
each year.
Advanced Manufacturing
Output and productivity in the advanced manufacturing industry continues to rise
due to investment in technology advancements in the sector. The strength of
Waterloo Region’s manufacturing industry has been its diversity and ability to
adjust to new and emerging market demands, contributing to the sustainable
growth of the industry.
A Statistics Canada labour force survey, produced in 2010, ranks Waterloo
Region first in Canada in terms of the proportion of its labour force employed in
the manufacturing industry (20% of total employment). The region also ranks
first in Canada in terms of the proportion of businesses in manufacturing.
Financial Services
The number of businesses and financial institutions in the Kitchener-Cambridge-
Waterloo CMA in 2011 rose to 608, employing 21,000 people. Canada’s
Technology Triangle (CTT) have noted that the total employment in the sector
has risen from 6.4% to 8.5% in the past 12 years, with the region scoring second
highest among Canadian CMAs.
Life Sciences
Life science has become an emerging cluster in Waterloo Region, with significant
recent investments in biotechnology, medical and environmental sciences and in
new research facilities such as the new University of Waterloo School of
Pharmacy. The presence of leading-edge research facilities, an educated local
workforce, and generous R&D tax credits contribute to the appeal of the region.
Food Processing
The Waterloo-Guelph-Toronto corridor is the largest food manufacturing region
in Canada and the third largest in North America. With a comparatively lower
overall cost of doing business than in the United States, access to more than 450
million North American consumers, access to ingredients and a stable market
place, Waterloo Region is an extremely attractive location for food business.
Planned or Recent Investment/Future Growth Generators
The following recent or planned investments are expected to play a significant
role in the future prosperity of the region:
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The planned $66 million expansion of Kitchener Public Library;
The construction of a global innovation exchange building at Wilfred Laurier
University, for students in business, mathematics, and economics;
Expansion of Eclipse Automation in Cambridge;
A $100 million investment by Toyota to expand its facility in Cambridge,
creating 400 new jobs, in addition to investments in its Woodstock plant;
The Government of Canada's investment of up to $4.4 million, provided
through FedDev Ontario's Investing in Business Innovation initiative, to
support the expansion of a number of companies in the region. The
investment is expected to support the creation of 210 jobs;
$818-million LRT project due to begin in 2014, and following developments
along the major transit nodes;
44-bed extension to Cambridge Memorial Hospital, 2013;
Conestoga College; expansion of its Doon campus; and,
The opening of the $160-million, 25,650-sq.m. Mike & Ophelia Lazaridis
Quantum-Nano Centre at the University of Waterloo in September 2012.
International Competitiveness
“When it comes to global trade, Canada is leading the way” according to David
Abney, COO of UPS which has recently invested $300 million in its Canadian
operations. Attributing Canada’s six new free trade agreements along with the
FTAs it is continuing to negotiate with emerging markets as clear indicators that
Canada is getting it right at reaching out to the world’s new consumers.
The Global Competitiveness Index 2012 – 2013 released by the World Economic
Forum in early September 2012, ranks Canada at 14th place. According to The
Conference Board of Canada, despite Canada’s respectable ranking, more needs
to be done to improve Canada’s competitiveness: “all levels of government, all
sizes of business, and all types of educational institutions have an important role
to play.”
The report highlights that Canada continues to benefit from a number of factors
including:
Its efficient markets;
Strong financial institutions;
Well-functioning government institutions; and,
Good infrastructure.
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T The Conference Board of Canada is addressing a number of the challenges
identified in the Global Competitiveness Report 2012-13 through its Centre for
Business Innovation; a five year initiative that will help bring about major
improvements in firm-level business innovation in Canada.
Canada recently was cited as having the best job creation record in the G7; with
the addition of 52,100 new jobs being added to the Canadian economy during
September 2012.
The Canadian Institute of Chartered Accountants’ third-quarter survey also notes
that 46 percent of senior executives expect the number of employees at their
companies to increase in the next year, up from 41 percent in the second-quarter
survey.
The implication for Waterloo Region is that although Canada is a competitive
country internationally, it could be taking greater advantage of that fact. Given
Waterloo Region’s strong economic attributes for technology and manufacturing,
it can be expected to benefit disproportionately from international recognition of
Canada’s advantages as a location for creative and expanding enterprise.
2.3 Policy Context
A number of legislative documents guide and promote economic development
within the Region of Waterloo:
The Places to Grow Act and subsequent Growth Plan;
Regional and Municipal Official Plans; and,
Region of Waterloo Strategic Plan.
The Growth Plan
The Growth Plan, which guides population and economic growth in the Greater
Golden Horseshoe, places particular emphasis on Urban Growth Centres and
identifies three Urban Growth Centres within the Waterloo Region: Downtown
Kitchener, Uptown Waterloo and Downtown Cambridge. Although these Growth
Centres focus on the central areas, the fact that there are three located within
Waterloo Region clearly reflects the region’s existing and future economic
importance.
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XT The Growth Plan protects employment areas and legislates for an adequate supply
of land for employment areas and employment uses. The Growth Plan recognizes
employment lands as an important tool for promoting economic development and
ensuring overall competitiveness.
The focus of the Growth Plan is to achieve a long term distribution of growth
amongst the affected jurisdictions. It provides a normative objective for the long
term distribution, but is not focused on detailed land use requirements and needs
over a short term horizon, essential for the management of the economic growth
process.
From a perspective of attracting and accommodating employment, the focus must
also be on the continual immediate requirements for land and infrastructure. This
is reflected within the Growth Plan in the recognition of the need for ready and
accessible infrastructure as a key driver for attracting investment and maintaining
economic competitiveness.
Region of Waterloo Official Plan
The Region of Waterloo Official Plan (currently under appeal at the Ontario
Municipal Board) sets out the planned urban growth for Waterloo Region. Most
growth is expected to occur in the existing Built-Up Areas through reurbanization.
In addition to the three Urban Growth Centres, which are expected to
accommodate a significant share of the region’s future population and
employment growth, the Region anticipates new growth and development to
occur in Urban Designated Greenfield Areas and the Township Urban Areas
designation.
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T Figure 2.3, produced from a composite of maps from the Region of Waterloo
Official Plan, illustrates the planned urban growth for Waterloo Region.
Figure 2.3 Composite of Regional Official Plan Maps 2,3a-e, & 7
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XT Table 2.3 sets out the population and employment forecasts for Waterloo Region
to 2029 as per the Regional Official Plan.1
Table 2.3 Population and Employment Forecast (as per Waterloo New Regional
Official Plan)
Population % Population increase
2006 -2029
Employment % Employment
increase 2006 -2029
2006 2029 2006 2029
City of Waterloo
101,700 137,000 35% 64,070 88,000 37%
City of Kitchener
214,500 313,000 46% 99,380 130,000 31%
City of Cambridge
123,900 173,000 40% 75,220 100,000 33%
Township of Woolwich
20,100 32,500 62% 13,540 18,800 39%
Township of Wilmot
17,700 28,500 61% 6,730 9,700 44%
Township of Wellesley
10,100 12,000 19% 3,290 4,100 25%
Township of North Dumfries
9,200 16,000 74% 6,080 8,400 38%
Total Waterloo Region
497,200 712,000 43% 268,310 359,000 34%
Source: The Region of Waterloo Official Plan
Note: The Waterloo Regional Official Plan is currently under appeal at the OMB. numbers and
planning horizon are subject to change
The Regional Official Plan identifies its goal, objectives and corresponding
policies which will guide economic development in the Region over the next 20
years. “The overall goal indentified is as follows: Collaborate with Area
Municipalities, Canada’s Technology Triangle Inc. and other stakeholders to
foster a diverse, innovative and globally competitive regional economy”.
There are two important features of the Region of Waterloo Official Plan that are
salient to economic development. The first is that the Official Plan does not stake
out a clear and explicit economic development role for the Region of Waterloo
beyond “fostering” and “facilitating”. The second is that there is no statement
that refers to the need for an economic development strategy for the Region.
The Region of Waterloo Strategic Plan, 2011-2014 identifies five focus areas as
Council priorities:
Environmental sustainability;
1 Note The Region of Waterloo has been requested by the MMAH to revise forecast
horizon to 2031, therefore the forecasted horizon is subject to change.
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Growth management and prosperity;
Sustainable transportation;
Healthy and inclusive communities; and,
Service excellence.
With respect to priority 2 above, Growth Management and Prosperity, the Region
has identified the following priority actions:
Continue to manage and shape growth.
Ensure infrastructure meets the demands of a growing community.
Enhance our arts, culture and heritage.
Strengthen partnerships with all orders of government and our
community partners to plan and manage growth.
Support a diverse, innovative and globally competitive economy.
2.4 Growth Pressure & Opportunities for Waterloo
Region
The rapid employment and population growth in the western GTA municipalities
presents an opportunity for Waterloo Region. As Peel and especially Halton
Region continue to grow and consume employment land, Waterloo Region is
expected to experience increasing market pressure for its employment land
portfolio. The success of the Peel and Halton Regions ultimately means higher
land prices in those regions which will create more interest in Waterloo Region
which has lower land values, within a very attractive urban context. This will be
amplified by traffic congestion, particularly at peak hours, along the 401 in Halton
and Peel.
This future pressure on Waterloo Region is evident in the most recent economic
forecasts released by the Province. While the GTAH will continue to lead growth,
the Outer Ring portion of the GGH will also see strong growth throughout this
planning period. More dramatic is the planned growth of the western portion of
the GGH that includes communities in the inner GTAH portion of the GGH,
including the City of Hamilton, and the western part of the Outer Ring of the
GGH including the Region of Waterloo, and the Cities of Guelph and Brantford.
This area was first identified by The Center for Spatial Economics in a 2008
report for Canada`s Technology Triangle (CTT). In this report they note that the
population of this sub-region is almost 1,500,000, employment of 766,000, $49
billion in income and $36 billion in household expenditures.
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XT These figures are very similar to the figures for the City of Calgary which had $51
billion in income, and household spending of $36 billion at the time the report
was prepared.
What do these trends mean for Waterloo Region?
The continuing shift of employment from manufacturing to service based,
results in corresponding shift towards office space, rather that manufacturing
space. Waterloo Region, with the only significant office space market in the
Outer Ring area of the GGH, and its urban/educational amenities, should be
well positioned to benefit from this trend.
Immigration will continue to drive population growth, with 94% of the
immigration residing in the GTAH and the remaining 6% in the Outer Ring
of the GGH. Waterloo Region is the overwhelming choice for immigrants
destined for the Outer Ring. Of the 6%, 4.5% or 75% of immigration growth
in the Outer Ring is into Waterloo Region.
Waterloo Region is currently the only part of Outer Region with positive
inflow for workers, a trend which is expected to continue.
Ontario manufacturing output has grown faster than rate of employment due
to efficiency and productivity improvements. This is good news for Waterloo
Region, with a mixed economy, and a strong manufacturing base that is now
more competitive, both in the domestic and international market places.
In a 2011 presentation on growth management in the GGH, MGP noted that:
o Approximately 75% of GGH employment growth is destined for the 905
area of the GGH;
o However, large 905 land banks are approaching build out; and
o The remaining strategic employment land locations are not now being
protected for future employment use.
This convergence of supply and demand for new employment land in the western
part of the GGH should result in a strategic shift towards private sector
involvement in employment lands acquisition and development in the Outer Ring.
Waterloo, as the largest municipality in the Outer Ring, its close proximity to both
the GTA and the Canada US border, should see considerable interest in its
employment lands for both office and industrial purposes.
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3.0 EXISTING ECONOMIC
DEVELOPMENT
FRAMEWORK
Despite many strengths, there are a number of weaknesses in the
current economic development framework indicating that the
current system is not fully meeting the needs of the regional
economy:
Absence of a regional approach to economic development;
A gap in available data;
Inconsistent marketing approach;
A lack of resources, particularly in the rural municipalities;
Trust issues; and, An unclear understanding of stakeholder involvement in
economic development.
3.1 Overview of Existing Framework & Responsibilities
Waterloo Region operates under a two tier municipal structure, with the upper tier
municipality, the Region of Waterloo, delivering services on a regional scale, in
addition to the services provided by the 7 lower tier municipalities, including;
Planning, Housing and Community Services, Social Services, Transportation and
Environmental Services and Public Health. Tables 3.1 and 3.2 summarise the
difference between Regional and Municipal functions, including shared and non
shared responsibilities.
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Table 3.1 Shared Responsibilities
Region of Waterloo Local Area Municipalities
Water Supply (for all municipalities)
Wastewater Treatment (for all municipalities)
Water Distribution for Wellesley and North Dumfries Water Distribution
Wastewater Collection for Wellesley and North
Dumfries
Wastewater Collection and Billing
Regional Roads (Main Arterial) and Traffic Signals Local Streets (Residential and Collector)
Regional Official Plan and Policies Zoning By-laws and Neighbourhood Plans
Rural Library System City Library System
Emergency Response (Ambulance) Emergency Response (Fire Protection)
Debentures (for all municipalities) Tax Collection (for area and region)
Regional Licensing and By-Law Enforcement (e.g.
taxis, lawn watering, tree cutting etc)
Local Licensing and By-law Enforcement (e.g.
parking, noise, property standards etc)
Table 3.2 Responsibilities Not Shared
Region of Waterloo Local Area Municipalities
Public Health (Child and Family Health, Healthy Living,
Sexual health, Infectious Diseases Programs, Dental
Health Programs, Population Health Assessment,
Emergency Medical Services, and Health Protection.)
Building Inspections and Permits
Social Services (Employment and Income Support -
Ontario Works, Children’s Services, Senior’s Services,
Social Planning)
Cemetery Management
Waste Management (Landfill, Recycling, Collection) Vital Statistics (Births, Deaths, Marriage)
Public Transit (Conventional and Specialized) Land Severances
Region of Waterloo International Airport Local Economic Development
Cultural Services (Waterloo Region Museum,
Schneider Haus and McDougall Cottage)
Parks and Recreational Programs
Emergency Planning
Community Housing
Provincial Offences Court Administration
34 Organisations Delivering Economic Development
At present, there are 34 organizations within the region that have an economic
development function that is part of their mandate and program activities. At the
municipal level, this includes the three Cities, the four Townships, and the Region
of Waterloo. The many agencies also include the universities, college,
development corporations, chambers of commerce, employment organizations
and other cross jurisdictional organizations. Below is a summary of the primary
focus or functions of some of the key organisations or groupings of organisations.
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Region-Wide Functions
The Region of Waterloo currently does not have a proactive role in coordinating
economic strategies, or delivery of economic development. It does however have
an enabling or coordinating role in labour market development, employment land,
infrastructure, data collection, research, policy development and review, quality of
life initiatives, regional economic development and integration with provincial
and federal bodies.
A number of functions are delivered on a region-wide scale, primarily from the
three not-for-profit organizations; Canada’s Technology Triangle (CTT), Creative
Enterprise Initiative, and Waterloo Regional Tourism Marketing Corporation. The
key functions delivered by these three organizations are foreign direct investment,
capacity building in the creative sector, and tourism respectively.
The Cities of Waterloo, Kitchener & Cambridge
The three Cities are involved in business attraction, business expansion and
retention, employment land and community development. Their role also extends
to marketing, infrastructure, data collection, research, policy development review
and accessing funding. By history and geography, the three cities have
complimentary but somewhat different roles.
The City of Waterloo, the region’s namesake, is focused primarily, but not
exclusively, on the tech sector. As the home of the University of Waterloo, and
the David Johnston Research and Technology Park, it is more closely associated
with technology; it is active in promoting foreign direct investment and the
retention of businesses.
The City of Kitchener has an active economic development focus on higher order
service sectors, administration, culture and tourism. It is engaged in economic
development, business retention, marketing, and culture and tourism. The City
does not have significant greenfield employment land and focuses more on the
office orientated service sectors that typically locate in the downtown core as well
as brownfield redevelopment.
The City of Cambridge has the largest industrial employment base and has been
focusing on developing and marketing greenfield sites. Cambridge has also made
significant achievements in creating a high quality urban character in the core
area. It too has active programs in foreign direct investment, marketing and
business retention.
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The Townships of North Dumfries, Wellesley, Wilmot &Woolwich
The Township of North Dumfries does not have significant involvement in
economic development activities, nor does the Township have the available
resources to engage in economic development. Interest in greenfield employment
land in the past has not resulted in a sale agreement.
The Township of Wellesley’s main economic development focus is retention and
expansion of its existing employers. The Township is limited by water restrictions
and therefore dry industries occupy designated employment lands. Without
economic development staff, the Township does not have significant engagement
in economic development.
The Township of Wilmot has a planner/economic development officer who is
engaged in facilitating employment land development and retention primarily.
Most queries relating to employment land development received are for serviced
lands, in which the area is deficient.
The Township of Woolwich has an active economic development department and
has prepared an Economic Development Strategic Plan. Their focus is primarily
on business retention, expansion & tourism. They are involved in a range of
initiatives to support and promote local businesses, including a business visitation
program. Agriculture, food and tourism are key sectors for the Township. The
private sector has been instrumental in developing employment lands within the
Township.
Business Associations/Chambers of Commerce
Business associations, grouped to include the Chambers of Commerce, the
Prosperity Council of Waterloo Region, the Manufacturing Innovation Network,
and the Business Improvement Areas, focus primarily on business expansion and
attraction, retention and marketing and to a lesser extent on research, policy
development and review and community development. Some business
associations are focused on specific geographies and/or specific industries. These
organizations play a key role within the region as one of the important contact
points between the public and private sectors.
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Communitech
Is a not for profit organization dedicated to supporting technology companies in
Waterloo Region and beyond. Communitech removes barriers within the industry
and provides a common place for companies, academics, enterprise and service
organizations to come together on innovating collaborations that promote the
region’s technology cluster. Founded in 1997, Communitech now supports a
network of more than 800 companies that generate more than $25 Billion in
revenue.
Post Secondary Institutions
Post secondary institutions; the University of Waterloo, Wilfrid Laurier
University and Conestoga College, play a key role in labour market development,
as well as research, data collection, policy development and review as well as
improving the quality of life in the region. The institutions assist many of the
other organizations in achieving their economic development mandate.
3.2 Stakeholder Commentary
Over the course of this study, we interviewed individuals from the 34 stakeholder
organizations, including the 8 Waterloo Region municipalities, business
associations, post secondary institutions, labour force development groups,
nongovernmental organizations and provincial organizations. We also met with a
number of mayors from Waterloo Region (see Appendix A for a complete list).
The objective of the consultation process was to understand how different
organizations are involved in economic development, how they interact, how each
organization fits into the current economic development framework, and their
views on issues, concerns, opportunities and gaps.
Broadly, our confidential discussions revealed that there is a commitment by all to
working towards ensuring that Waterloo Region is as successful and vibrant as it
can possibly be. At the same time, there are concerns surrounding the
effectiveness and focus of the existing economic development framework. There
is a general willingness to embrace change and to coordinate efforts if in doing so
it will make the current system more efficient and beneficial to the region as a
whole.
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Section 3.2 summarizes some of the feedback we received, our observations, and
highlights some of the key findings from the consultation phase of the project. We
have categorised the findings under common discussion themes that emerged
from the consultation process. We noted conflicting views relating to many topics
and have not attempted to correct misunderstandings; rather the section should be
read as an overview of the perceptions that exist within the region in relation to
what is happening in terms of economic development.
Organization/Governance
Governance of economic development was the most common theme discussed
throughout the interview process. There was consensus that changes are needed
but different views on the best solution. Below is a sample of the comments
received;
“Economic development (within Waterloo Region) is …. splintered and there
is a lot of wheel spinning”.
“The region has been successful despite its framework and lack of cohesive
strategy”.
The region currently operates under a “dysfunctional framework”.
The current approach to economic development is “confused and informal”.
Collaboration/Interrelationships
In terms of collaboration and how different economic development stakeholders
interact, there were mixed responses:
With its plethora of organizations and overlapping boards, the region is “very
collaborative” and perhaps “overly collaborative” in terms of economic
development. “There are too many organizations”.
“There is too much focus on the high tech sector at the cost of other
important sectors”.
There is poor region-wide general business intelligence and regional approach
to business attraction and retention.
Among the identified stakeholder organizations there is a lack of appreciation
for the significance, and importance of their programs to economic
development. “We don’t do economic development”.
There is no defined regional economic development governance structure.
Relationships between the different organizations appear to be generally very
positive and collaborative.
Issues of trust have emerged resulting from a lack of information and
intelligence sharing from the top down, leading to a lack of confidence in the
abilities of others working within the industry.
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Personality conflicts exist, affecting the smooth running of the system.
Inefficiencies have been created by an absence of cooperation, leading to
overlaps.
Key Framework Responses Required:
To consolidate and refocus the delivery of economic development functions
throughout the region, to make better efficiencies.
To improve collaboration, relationships and build trust between organizations.
To adopt an effective and comprehensive regional approach to economic
development.
To promote coordinated economic activity among development among
stakeholder groups and across the region.
Townships
We asked the staff at the Townships what resources or changes would support
them to conduct their roles more efficiently. A summary of the main points
include:
More local economic development staff would be very beneficial.
A regional point person to help navigate the system, dealing with planning
policy issues and servicing related queries.
“A regional overarching agency would lead to huge efficiencies”.
There is a need to revisit the regional brand.
The greatest obstacle prohibiting the development of one of the communities
is not having broadband.
There is a need and desire to develop an economic development strategy with
a regional focus. There is also a desire for increased cooperation between the
economic development partners.
A central source for information relevant to economic development including
details of vacant employment lands would be useful. They would like to see
better region-wide sharing of information between the stakeholders.
An overarching economic development agency with a regional focus is
needed.
Access to more shovel ready land is required.
The Townships should retain a local role in economic development.
Key Framework Responses Required:
There is a need to address the lack, or complete absence, of economic
development resources at the rural townships. Access to up to date regional
wide economic development related information and data would be extremely
beneficial in improving service delivery at the rural level.
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Some Townships feel more aligned to each other than to the wider regional
economic development network. There is a need to improve interrelationships
and the economic development support network throughout the region.
A regional approach to economic development would benefit the Townships.
Regional Involvement
We asked all interviewed stakeholders how they would view a refocused
framework which involved more direct involvement by the Region of Waterloo in
terms of economic development. The consultation process revealed:
There is a requirement for a regional approach to economic development and
that it would be positive for the Region of Waterloo to become more involved
in economic development.
The general opinion is that the role of the Region of Waterloo should not take
away from the role of the municipalities and townships in providing local
economic development services.
There is a view that increased involvement by the Region of Waterloo would
create efficiencies and speedup processes, particularly in terms of bringing
employment land to a shovel ready state.
A number of different suggested responsibilities emerged in terms of the Region
of Waterloo’s involvement in employment land development including:
The Region of Waterloo should retain its current status of servicing
employment lands, but there is a need to speed up the process, ensure that
there is enough available employment land, and cut down on the bureaucracy.
“The Region should support communities to get land to a shovel ready state
and let the local municipalities and townships take care of the rest”.
Some suggested that there is a requirement for the Region to purchase and
manage strategically important employment lands, including lands located
close to and around the airport, to accommodate and safe guard the future
viability of the region.
Some questioned whether there should be a stronger role for the private
sector.
That a “champion” could be employed at the Region of Waterloo, who would
coordinate regional economic development activities and get employment
lands moving.
Preparation of a regional economic development strategy.
Collator and coordinator of data and research.
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There was support, by some, for the creation of an economic development
department at the Region of Waterloo with the Region of Waterloo providing
a full service economic development role. This idea has also been resisted by
some of the participants who feel that economic development should remain a
service that is provided at a local level.
There was general consensus that there needed to be more coordination of
economic development efforts across the region.
A regional point person could be identified at the Region of Waterloo to help
navigate the system, particularly in terms of employment land development
and in supporting the local municipalities.
There was also concern, by some, that if the role of the Region was expanded
into providing a full range of economic development services, this could
reduce the independence of the area municipalities and could be seen as a
move to defacto amalgamation.
Key Framework Responses Required:
To establish an appropriate economic development role for the Region of
Waterloo.
To review the roles of the other stakeholder organizations in light of increased
Region of Waterloo involvement in economic development.
To be mindful of the political complexities.
An Expanded Role for Canada’s Technology Triangle
The current and future role of Canada’s Technology Triangle (CTT) was a topic
of discussion in many of our meetings. There were contradictory observations in
terms of the current and envisaged future role of CTT:
“CTT should narrow their focus and stick specifically to FDI, fine tune its
strategy in terms of where their focus lies and continue to promote the region
abroad”.
“The role of CTT should be expanded to include other economic development
functions” including; conducting research and acting as a coordinator of data,
taking control of regional tourism with some proposing that CTT would be
the most suitable existing organization to rebrand and refocus to offer a full
service economic development service.
There is confusion surrounding the role and mandate of CTT. In many cases
there was an expectation that CTT should be providing additional services
outside of its current mandate.
Conflicting views surrounding its achievements to date.
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Key Framework Responses Required:
There is a need for clarity surrounding the role and mandate of CTT.
New Overarching Regional Economic Development
Organization/Development Corporation
There was significant support for a new organization to guide regional economic
development in Waterloo Region.
Some felt that a new organization was required that would be independent of
the Region of Waterloo, the Municipalities or CTT.
Such an organization would have a multidisciplinary focus, and be
responsible for all or a select number of economic development functions
including; marketing, strategy development, data collection and research,
tourism and land development.
The opposing argument was that there are already too many organizations with an
economic development focus, and that adding an additional organization would
not be beneficial. It was suggested by some that the CTT itself could be expanded
to take on a broader role.
Key Framework Responses Required:
Consideration to be given to effective mechanisms to establish and coordinate
the implementation of a regional economic development strategy.
Consideration to be given to the formation of an independent organization to
lead economic development across the region.
Marketing/Branding
Issues surrounding marketing and branding were a significant part of the
discussions with all stakeholders. Our discussions revealed:
Branding
There is confusion surrounding the brand and there is little association with
the brand “Canada’s Technology Triangle”.
“There is a need for a refocus and rebranding”.
“The regional brand may not be as strong as perceived”.
“Education and talent could become more implicit in the branding”.
Marketing
There is a demand for a regional marketing and communications strategy.
There is a need to establish responsibility for finding, storing and coordinating
relevant data on a regional scale and for marketing the region.
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Some areas in the region currently do not have broadband access.
Key Framework Responses Required:
There is a need to refresh and refocus the regional brand.
A comprehensive regional economic development strategy should include a
comprehensive marketing and communications strategy.
There is a need to establish responsibility for finding, storing and coordinating
relevant data on a regional scale and for marketing the region.
Marketing material is outdated; it should reflect a technologically advanced
community.
Data/Information Sharing
In many cases, a lack of accessible region-wide economic development and
marketing data was identified as a primary obstacle to effective delivery of
economic development services. Our key observations include:
Suspicions, knowledge gaps and inefficiencies have developed as a result of a
lack of openness with regard to information sharing and a lack of a common
information base.
There is no central generator, collator and repository for accessible relevant
regional data and economic research.
Organizations are producing useful information that is not readily available or
being dispersed throughout the economic development community.
Key Framework Responses Required:
A centrally managed regionally focused data source, freely accessible to all,
would be beneficial to all parties including staff, the public, existing and
potential businesses.
Strategy
Many stakeholders agreed that there is a need for a comprehensive regional
economic development strategy. In developing the strategy there has been an
appeal to:
Expand the regions focus beyond the technology sector and to consider other
significant industries.
Consider the development of sector specific strategies as part of the
overarching economic development strategy.
Celebrate the differences between the cities and townships, and to encourage
some degree of local competition.
Key Framework Responses Required:
Development of a comprehensive regional economic development strategy.
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Development of a comprehensive regional economic development strategy.
Employment Land
For stakeholders who have involvement or who have an interest in employment
lands, there were some key messages:
The most widely identified obstacle to employment land development is a
lengthy planning approvals process; “It takes too long to get land to a shovel
ready state”.
The cost of servicing lands has been highlighted as a limiting factor.
The adopted employment land development strategy is short term. There is no
mechanism to accommodate for a rolling supply of readily available
employment lands.
There is confusion generally surrounding how much employment land is
actually useable, i.e. for sale or lease and are shovel ready as opposed to those
that are notionally available.
There is a lack of long term strategic thinking in terms of development of
regionally significant parcels of land, the lands surrounding the airport for
example.
It has been suggested that the private sector is intimidated by the power of the
public sector with regard to employment land development, which has kept
them largely out of the business. We spoke to a realtor who suggested that “if
the Region and municipalities concentrated on ensuring that employment
lands are serviced and shovel ready the rest would take care of itself”.
It was argued that the Countryside Line should be revised, that the current
restrictions are impractical and inhibits development.
Key Framework Responses Required:
Need to establish and maintain a registry of employment lands for the entire
region which captures all relevant information pertaining to the lands; which
lands are serviced, vacant, shovel ready, for sale, size of parcels, zoning etc.
There is a need to think strategically about land and what is best for the long
term viability and success of the region.
There is a need to find a balance between the needs of planning and the need
to ensure an adequate supply of land at all times.
There is an opportunity to review the method of measuring development
charges.
The line between public and private sector involvement in employment land
development must be clear.
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Business Retention, Outreach & Development
In terms of business retention, outreach and development, feedback and our
general observations revealed:
Municipalities are rolling out a business visitation program but there appears
to be a lack of commitment by some to fulfill their responsibilities with regard
to the program.
In the rural Townships, a lack of resources makes it difficult for staff to
engage fully in retention activities.
There is an unstructured, unclear approach to retention in relation to
companies with a region-wide scope.
There is a lack of general business intelligence; there is no regular assessment
of needs and issues. The current process is reactionary rather that proactive.
In terms of recent investment losses throughout the region, it would appear
that there was a lack of coordination, that assumptions were made about what
businesses were planning to do rather than basing actions on fact, that
responses were slow and confused, and perhaps “unprofessional”.
Key Framework Responses Required:
There is a need for a more organized program of outreach, with specific
mandates, processes and outcomes.
A professional approach to corporate relationship management needs to be
instituted.
A differentiation is required between local retention activities and a
regionally orientated strategic corporate relationship program.
Better regional coordination.
Talent
Through the consultation process it emerged that:
Recognition exists throughout the region of the importance of implementing
initiatives to attract and retain talented professionals.
There is acknowledgement of the central role that the second level institutions
play in supporting existing and new businesses.
Improving the downtowns, transit and overall livability of the region is
considered essential for talent attraction and retention.
Key Framework Responses Required:
A talent attraction and retention strategy is currently being developed within
the region. This strategy should link to an overarching regional economic
development strategy.
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Performance Measures
An absence of performance indicators across the stakeholder organizations has led
to:
Assumptions and a lack of appreciation for the value of work done by others,
resulting in trust and confidence issues.
Overlaps and gaps not being measured or addressed.
Key Framework Responses Required:
A periodic review and evaluation of all organizations would ensure optimal
value for money.
Lack of Key Performance Indicators (KPIs) for all stakeholders within the
region involved in economic development creates uncertainty about value for
money and is necessary for the management and implementation of a strategy.
Performance indicators should be relevant to the organization’s mandate and
should be measured in terms of outputs not inputs.
A common set of KPIs for all organizations (where practical) would
streamline the process and clearly and easily show where there are
inefficiencies.
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3.3 Gaps & Redundancies
General Observations & Analysis
There is an evident difference in service delivery within the three Cities and an
even larger difference between the range of service delivery provided by the
Cities to that provided by the Townships, highlighting a lack of consistency across
the region, varying degrees of service delivery from one jurisdiction to the next,
and limited resources in some areas. The diverse nature of the various Cities and
Townships in terms of scale, attributes, and economic development focus means
that there is not a requirement for all services to be provided to the same degree
across the region, however a lack of consistency and clarity surrounding
functions, roles and responsibilities makes it more cumbersome for those
accessing services from a number of the Cities and or Townships.
There is no one organization delivering, enabling or contributing to all economic
development functions, either at the local or regional level. Our consultation
revealed that there is a need and support for a regionally focused organization to
provide a cross section of economic development functions.
We have identified 21 organizations that are providing one or more region-wide
economic development functions and that 12 of the 14 functions are being
delivered to a degree (the service may be narrow in focus) with a regional focus.
Employment land development and economic policy development are the
exceptions, with no organization tasked with primary regional responsibility for
either. There are overlaps in terms of the number of organizations providing an
element of the same function at a regional level; however that is not to say that the
exact service is being duplicated.
In terms of service delivery provided by the cities and townships, the most notable
gap is limited economic development resources at the Township of North
Dumfries and the Township of Wellesley, who have no specific economic
development budget or economic development staffing resources. The planner at
the Township of Wellesley currently accesses supports relating to economic
development from planning staff at the Region of Waterloo and engage in
economic development networking activities. The Township of North Dumfries
does not have the resources to engage in economic development activities. There
is a requirement to address this resourcing gap.
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Business Attraction/Development, Expansion and Retention
Business attraction and retention is the function with the largest number of
stakeholder organizations involved across the 14 identified functions. Three
organizations have been identified as having a primary regional role in business
attraction and retention as part of their overall mandate within their defined
sectors. However there is no organization mandated to oversee business attraction
and retention across the region and across a broad range of sectors.
A more assertive and effective approach to corporate relationship management is
required. This will provide employers with designated “advocates” within the
economic development system. It will also help to ensure that business
intelligence on potential needs, expectations, services, and growth facilitation is
improved.
Labour Market Development
The labour market development function is delivered by a cross section of
organizations including; all of the identified labour force development
organizations, the post-secondary institutions, Communitech, and the
Manufacturing Innovation Network. Other organizations play an enabling role in
labour market development.
There does not appear to be any gaps in terms of the delivery of the labour market
development function. Waterloo Region adopts a proactive approach to labour
market development through its training, research, initiatives and supports. Talent
attraction and retention is a significant component in providing for a successful
and diverse economy. A talent and labour market development strategy should
therefore form part of a wider regional economic development strategy.
Foreign Direct Investment
Foreign direct investment is the primary responsibility of Canada’s Technology
Triangle (CTT). The Department of International Affairs and Foreign Trade who
have offices in Waterloo Region also play a significant role in foreign direct
investment and have close relations with CTT and their work.
In terms of gaps and foreign direct investment, branding of the region as Canada’s
Technology Triangle raises issues for a number of the stakeholder organizations.
There is a need to refocus the branding of the region to broaden the spectrum of
strengths and potential investment opportunities within the region. There is also a
need to ensure that a cross-section of industries is being promoted abroad as there
is a perception that the technology sector gets the majority of attention.
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Sector/Cluster Development
Waterloo Region is synonymous with technology due to a significant effort by a
broad range of organizations to support and promote the industry. Cluster
development has proven to be hugely successful, particularly in terms of the
technology sector. The networks that are formed through clustering activities
ground the companies to the region and facilitate the growth of the industry. The
work of Communitech in supporting the technology sector has had hugely
significant implications for the region. CTT and the University of Waterloo along
with others have also contributed significantly to the growth of the industry.
The City of Kitchener has recognized the significance of development of new
economic clusters and focuses on the promotion of arts and culture, clean
technology, digital media, education and knowledge creation and life science
clusters.
OMAFRA support and promote the growth of the agriculture and food industries
across Southern Ontario. The Manufacturing Innovation Network supports the
manufacturing industry through an online networking service that is national in
scope.
Cluster development initiatives are an important new direction in economic policy
in supporting industries to grow in strength and size. Research indicates that
industries participating in a strong cluster register higher employment growth as
well as higher growth of wages, number of establishments, and patenting.
Industry and cluster level growth also increases with the strength of related
clusters in the region and with the strength of similar clusters in adjacent regions.
Findings also suggest that new industries emerge where there is a strong cluster
environment.
There is therefore merit in expanding the regional cluster development approach
and to incorporate the strategy into policy and an effective economic development
program.
Employment Land & Infrastructure
Employment land development is currently being facilitated in varying degrees by
the Municipalities. The Cities in particular are the primary suppliers of industrial
and business park lands. They have responsibility for the designation and zoning
of specific lands to accommodate forecasted employment growth and the
provision of local infrastructure (water, sewers, and local roads) directly required
to provide for the development of employment lands.
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While the Townships assist in bringing employment lands on-stream, they rely
predominantly on the private sector to provide land for employment growth,
which has been a beneficial strategy, particularly in the case of the south Elmira
Industrial Area, where the private sector has over the past several years been very
successful in bringing employment land on to the market.
Under the current framework the Region of Waterloo does not have a mandate to
be directly involved in employment land development. The Region does however
play an enabling role through the provision of major infrastructure (water
capacity, treatment and mains, wastewater treatment capacity, and regional roads)
directly required to provide for the development of employment lands; by
designating employment lands in the Regional Official Plan; development
approvals; and lobbying of the Provincial and Federal governments to provide
funding for infrastructure.
In terms of gaps, there is no long term strategic regional focus on employment
land development that is consistent with a regional economic development
strategy. Without a region wide mandated organization, investors seeking to
locate within the region may need to research and negotiate with a number of the
municipalities/townships rather than dealing with one organization who can
advise on all prospective site locations. There is also inter-municipal competition
in terms of securing investors and employers to employment lands. While some
level of competition can be good, there needs to be a strong regional perspective
advanced for marketing and attracting potential employers.
Marketing
Under the current framework structure, marketing is being delivered at some level
by many of the organizations. However the scope of the marketing tends to be
locally orientated, specific to the organization, on a sectoral basis or limited in
nature. CTT markets the region under its foreign direct investment mandate;
however this focusses on a limited number of industries. Communitech plays an
important role in marketing the region as a technology cluster; and the
Universities and College play their part in marketing the region as an education
center. However in terms of economic development, there is no overarching
marketing strategy and no organization with a broad regional marketing approach.
Marketing of the region was one of the primary topics of discussion throughout
our consultation process and in particular the need for an up-to-date, region-wide,
accurate and modern approach to marketing the area. There is an evident need for
a strategic regional marketing strategy.
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Tourism, Arts & Culture
The tourism, arts and culture sectors are well serviced throughout the region. The
sectors are tied in varying degrees to economic development in the various Cities
and Townships. On a regional scale, tourism is promoted by the Waterloo Region
Tourism Marketing Corporation who maintains the Explore Waterloo Region
website and is linked to the cities and township websites.
The City of Kitchener has a particular focus on linking tourism, arts and cultural
to economic development and has invested significantly in adding value to these
sectors. The City of Kitchener promote arts and culture as a competitive cluster
sector and strive to become the arts and culture hub of the region.
The Cambridge Chamber of Commerce in partnership with the City of Cambridge
operates Cambridge Tourism. It is the mission of the Chamber to develop tourism
initiatives and to build partnerships that pool ideas and resources to promote
Cambridge as a viable travel destination.
The Township of Woolwich are actively involved in tourism promotion and
operate a visitor information centre to compliment two other visitor information
centres operating within the Woolwich area.
The Creative Enterprise Initiative aim to provide an arts portal for up to date
information relating to; arts activities, events and initiatives throughout the region.
Data Collection & Research
While some of the local Municipalities collect economic development data at the
local level, there is a gap in available economic development relevant data at the
region wide scale. The Waterloo Region Collaborative Economic Research Group
(WRCERG) was formed in 2011 to address a gap in available economic research
and data. The group is working towards creating its own website and members
pay a fee to purchase data. While this is a positive step towards addressing a gap,
the data is not freely accessible by all. The group will become increasingly
involved in producing reports based on the data, which will be freely available.
This still leaves a gap in freely accessible regional economic development data.
In terms of information relating to availability of employment lands, some
Municipalities keep a register, however the information is not maintained on an
on-going basis. Therefore there is no available up-to-date data on regional
employment land availability. A lack of available up-to-date relevant economic
development data for the region was highlighted as one of the most significant
gaps that we identified through our consultations with the stakeholders.
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From our discussions, stakeholders revealed that a central data repository with
accessible, up-to-date, accurate, region wide data would lead to huge efficiencies.
There is also a need for general business intelligence data gathering.
In terms of region-wide economic development research, there appears to be a gap
in on-going research relating to economic development. In changing economic
circumstances, the economic stakeholders of the region have recognised the need
for intelligence on where the region sits in terms of its competition, where
markets are evolving, where there are new opportunities, and where the region
should be focusing its efforts. There is value in measuring and analysing
performance, and the impacts, effects and opportunities of initiatives, programs,
and funding. Efficiencies can be made and opportunities maximised. There is a
requirement for on-going research on economic development trends and analysis
of how existing and potential programs, investments, initiatives and models have,
and can, impact the economic viability of the region. This information should be
shared across all levels and sectors and should feed into policy development,
infrastructure plans and strategies for improving and positioning the region at its
best. The WRCERG may have a role in fulfilling the above requirements.
Economic Policy Development
Economic development policy is developed at the local and regional level through
the Municipalities and the Region of Waterloo. However there is no Municipality
or agency that is charged with the responsibility of creating and implementing a
region wide economic development strategy.
For external users accessing economic development policy and land use mapping
in particular, there is inconsistency in terms of terminology and colour coding.
Consideration should be given to streamlining land use mapping across the region
for simplification purposes for the general public.
Should a regional economic development strategy be developed, there needs to be
an institutional response which supports the delivery and preservation of the
strategy.
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Quality of Life
Most organizations in some way contribute to quality of life improvement
activities locally and throughout the region. Quality of life, a sense of place and a
positive living environment are increasingly considered to be significant factors in
supporting a diverse, vibrant and successful economy, particularly in terms of
attracting and maintaining talent which in turn leads to business attraction and
retention.
Waterloo Region is mindful and proactive in providing measures to improving the
quality of life of those living and working in the region. The quality of life agenda
needs to become an intrinsic element of an overall regional economic
development strategy.
Community Development
Many of the stakeholder groups contribute to community development through
their work, through community strategic planning, training, advisory services, arts
and culture initiatives and events, information supports, funding and loans. There
were no significant gaps relating to community development identified throughout
the study.
Service Delivery Gaps Summary:
There is no one organization providing all economic development functions
at the region level. There is a demand for a regionally focused organization to
provide a cross section of economic development functions.
There are limited resources within the rural Townships; there is a need to
find a measure to address this discrepancy.
There is need for delivery of regionally focused business attraction,
expansion and retention activities that are broad in focus in terms of the
spectrum of industries.
Data production and the lack of sharing and accessibility of data need to be
addressed.
There is a necessity to develop a regional marketing strategy as part of the
broader regional economic development strategy, and for an organization to
take on the responsibility to market the region in terms of broad economic
development objectives.
A long term, regionally focused employment land strategy is required to
support a strategic regional economic development strategy and to ensure
that regionally significant parcels of land are secured to maximize the growth
potential of the region.
Townships (particularly the Township of North Dumfries and the Township
of Wellesley) need support in terms of employment land development.
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The branding of the region requires a refocus.
There is a need to ensure that a broad profile of investment opportunities
from a broad spectrum of sectors is presented in terms of foreign direct
investment.
There is a need to prepare a regional economic development strategy.
There is a need to provide an institutional framework to support the
development and delivery of the regional economic development strategy.
The cluster development approach needs to be expanded further as an
economic development policy direction.
A talent and labour market development strategy should form part of a wider
regional economic development strategy.
Tourism, arts and culture should be a significant feature in a broad strategic
regional economic development strategy.
There is a need to develop a comprehensive business intelligence strategy
with an expansion and retention, policy development and data gathering
focus.
There needs to be a central agency that can provide or coordinate “one
window” services to existing businesses in the region.
There is a requirement for on-going research on economic development
trends and analysis of how existing and potential programs, investments,
initiatives and models have and can impact the economic viability of the
region.
Accurate and timely land use mapping and data across the region needs to be
streamlined and made accessible.
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Table 3.3 Gaps and Redundancies
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3.4 SWOT Analysis of Current Waterloo Region
Economic Development Framework
The following SWOT analysis captured in Table 3.4 is an outline summary of the
strengths, weaknesses, opportunities and threats of the current economic
development framework and processes in Waterloo Region. The table has been
populated from analysis of findings and observations from a combination of a
review of existing research and reports, the stakeholder consultation process, and
analysis of the gaps, overlaps and issues.
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To sum up the findings of the consultation exercise, analysis of the gaps and
redundancies and the SWOT, and taking the central study questions into account,
section three highlights that despite many strengths, there are a number of failings
in the current economic development framework indicating that the current
system is not fully meeting the needs of the regional economy.
The most significant issues/gaps that emerged include:
The absence of a regional approach to economic development or a
comprehensive regional economic strategy;
A gap in available data and a lack of sharing of data;
A poor and unfocused marketing approach;
A lack of resources, particularly in the rural municipalities;
An absence of trust amongst stakeholders; and,
An unclear understanding of stakeholder involvement in economic
development.
The section also provides insight into answering the question of whether or not
the Region of Waterloo should play a more significant role in economic
development, with most stakeholders agreeing that the Region should become
more involved in economic development and that there is a need for a regional
approach to economic development. Economic development is a high priority
throughout the region, and there is willingness among the stakeholders to engage
in and facilitate a change to the current economic development framework for the
betterment of the region as a whole.
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COMMUNITIES AND
BEST PRACTICES
The promotion, development and expansion of regional
clusters is the key to economic success.
Regional business clusters require engagement at regional
level, as shift towards multi-level governance occurs.
Single tier Cities appear to favour external economic
development organizations, while two tier regional/local
municipalities favour internal economic development
organizations.
4.1 Context for Comparative Analysis
This section reviews current trends in: the organization of local and regional
economic development services; the evaluation of economic network
effectiveness; the benchmarking of what makes local and regional economic
development organizations successful; and, the metrics required to measure and
track the success of the programs in achieving desired municipal outcomes.
The SWOT analysis discussed in section 3 was organized around the following
themes: Strategy; Organization and Governance; Coordination; Economic
Development Delivery; and, Resources. The same five themes are used to
organize the comparison of jurisdictions and the subsequent discussion of best
practices.
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The comparative analysis with identified peer jurisdictions looks at three different
groups of organizations:
Multi-tier economic development organizations in strong technology sector
communities, such as: the Greater Halifax Economic Development
Corporation Halifax Nova Scotia; Raleigh/Durham North Carolina
Technology Triangle; and, Charlotte USA, Charlotte North Carolina which
were identified in the RFP, and subsequently expanded to include other
examples such as Portland Oregon (see Table 4.3);
Existing multi-tier regional municipalities in Southern Ontario (see Table
4.4); and,
Single-tier municipalities with economic development and/or real estate
development subsidiaries (see Table 4.5).
4.2 Regional Economic Development
Waterloo Region has achieved considerable economic development success over
the past several decades. This success has come at a time when the traditional
factors responsible for regional growth and local business development have
transitioned from those largely focussed on local plant development for domestic
markets, to those driven by global market places and global supply chains. This
regional success has continued while the economic landscape elsewhere in South
Central Ontario adapts to the impacts of the global recession, four years of
declining consumer spending in the United States, and the sustained parity
between the Canadian and United States dollars.
These shifts have also challenged much of the prevailing thinking on local and
regional economic development practices. Recent regional economic development
literature focuses on the regionalization of economic activity and corresponding
changes in the function and structure of local and regional economic development
organizations, economic development metrics, and economic development
coordination, as key best practices.
Michael Porter, in a set of publications (1998, 2003), reviewed the clustering of
industry in the United States and noted that business success and regionalization
correlates more strongly, than does business success with national location. He
extended this finding to the ways in which regional clusters, rather than nations,
should be the focus of economic development policy and programs. This is a
significant evolution of his thinking previously discussed in his 1990 publication
“The Wealth of Nations”.
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His views on regional business clustering have influenced both academic
discussion of the regionalization of economic development policy and the training
and practice of economic development around the world. Table 4.1 is a summary
of how the practice of economic development has evolved in response to Porter
and others.
Table 4.1 Economic Development Then and Now
Economic Development Then Economic Development Now
Responsibilities Driven through “top down” government
policies and incentives.
Collaborative process involving, multiple
levels of government, focussed on
research institutions and companies.
Objectives Business attraction and retention Attract educated people, high quality jobs,
add value, compete globally
Basis for competition Offer lowest costs for standard inputs of
production (i.e. land, taxes, labour)
Offer a skilled labour force, quality of life,
R&D technology, and global connections
Location of competition Local & Regional Regional, National, Global Clusters and
Networks
Basis for competition
Competitive advantage-low land and
operating costs, low wage location
Skilled labour, quality of life, cultural
amenities, R&D technology, openness to
change
Business Model Single entity, taxpayer funded Clusters, strategic alliances, networks and
global mandates, shared resources
Actions Tax incentives, marketing Skills development, innovation,
entrepreneurship, partnerships, supportive
business environment
Performance Outputs-Jobs Created Outcomes-Quality Places, Rising wage
rates and educational achievement
Source: “The Economic Performance of Regions”, Porter, 2003.
Note: The table is a summary of a table published in the “Regional Economic Development: Analysis and Planning
Strategy”, Robert J. Stimson, Brian H. Roberts, and Roger R. Stough, 2007. A copy of the full table is found in Appendix C.
Tom Zizy, in an April 2012 paper entitled “Rowing Together: Best Practices for
the Regional Coordination of Economic Development in the Toronto Region”
extends the Porter analysis to Southern Ontario, and identified 4 drivers of the
growth in the number of regional economic coordination institutions in Southern
Ontario: These four drivers push shifts in:
Economic development practices, from business attraction to
business enhancement. It is no longer just attracting industry, but
putting in place the enabling tools, networks, and human capital
infrastructure, for self-defining regional clusters that cross
municipal boundaries;
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Business/government relations, from controlling location to
facilitating engagement with business. Regional business clusters
require engagement at a regional level as part of this evolving
paradigm, which requires increased reliance on multi-level
governance;
Focus, from regional development to business development. This is
a shift away from addressing regional disparities, to addressing
coordination and alignment of local, regional or national
government institutions with business requirements; and,
Outcomes, away from economic only, towards sustainable and
integrated, economic, social and environmental outcomes.
A recent study by Stephen Thompson (2011) analyzed internal and external
delivery models for economic development. His research focused on the period
from 1999 to 2009 and was based on Ontario municipalities with populations over
10,000. From 1999 to 2009 the number of municipalities with internal economic
development departments increased substantially, while the number of
municipalities with external economic development departments, e.g. an
economic development corporation wholly owned by the municipality, decreased
slightly from nine to eight. This work was expanded for this study by this author
to include two-tier region municipalities and to look only at South Central
Ontario. The following table identifies which regional or local municipalities have
internal or external economic development organizations.
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Table 4.2 Selected Southern Ontario Economic Development Delivery Model Types
Single Tier Internal External Local Membership in a Marketing Partnership Agency
London X NA
Hamilton X NA
Windsor X NA
Ottawa X NA
Halifax X NA GHDC
Stratford1
X(in
progress)
NA SOMA
Two Tier Regional/District External Local
Membership in a
Marketing
Partnership Agency
York Region X 8 Local /8 Internal GTMA
Peel Region NA NA 3 Local/3 Internal GTMA
Halton Region X 4 Local/3 Internal GTMA
X Burlington
Durham Region X X GTMA
Niagara Region2
X(in Progress) X 12 Local
X Fort Erie
Muskoka District NA X-only
tourism
6 Local/3 Internal
1 Stratford is in the process of transitioning from an internal model to an external model. 2 Niagara Region is in final stages of transitioning from an external model to an internal model.
Regional and Local Best Practices
A report entitled “Best Practices in Economic Development” was prepared by
TAIMERICA Management Company in 2009 for the North East Indiana
Foundation. Thirty “benchmark” economic development organizations were
selected based on their reputations within the development industry, the national
awards they had received, and their past growth above the national average for
similar sized communities. This data was supplemented with a survey of best
practices for the same organizations. The report outlines two best practice profiles
for both regional and local economic development organizations. Of relevance to
this study are their observations on the relative roles of local and regional
organizations in investment attraction, lead management and employment lands.
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Successful regional economic development organizations typically provide the
following core functions:
Economic development strategy preparation in conjunction with member
municipalities;
Marketing and regional promotion and subsequent prospect handling;
Regional research including data collection, analysis and information
dissemination;
Information sharing and technical assistance to local economic development
organizations in the region;
Maintain an inventory of available buildings and sites within the region using
the latest technology; and,
Support, but do not lead, business retention and expansion efforts of local
economic development organizations.
Successful local economic development organizations typically provide the
following core functions:
Economic development strategy for local municipality;
Marketing and promotion of the community, including handling prospect
visits;
Lead business retention and expansion;
Develop their own portfolio of sites and buildings to support marketing; and,
Often handle workforce development and training, and small business
entrepreneurship development.
In their conclusion they identify 12 traits that distinguish the best economic
development organizations, from their counterparts. This “Balanced Scorecard for
Economic Development” provides a useful framework for answering the question
“Why economic development organizations excel?” The analysis indicates that
they:
1. Operate with a clear vision and strategy of how their organization will work
toward the desired vision for the future of their community, one that is
widely held by local leadership;
2. Have written strategic plans that guide their overall activities. These plans
keep leaders focused on those actions that lead to long-term improvements;
3. Have a focused mission. For local economic development organizations, the
mission includes real estate development, as well as marketing and business
retention;
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4. Receive the majority of their funding from the private sector, giving leaders
the flexibility of focusing on long-term goals. (In the United States, large
utility companies have found it prudent for their own business success to take
on core funding and leadership roles in local, regional, and state economic
development partnerships, for example Duke Energy in Charlotte, North
Carolina. In Ontario, electric power utilities have historically been owned by
the Province, and not directly engaged in local economic development. This
situation is now changing and may result in greater direct participation by
power utilities in Ontario. Gas utilities are regulated private corporations, and
they have become engaged in regional and local economic development
sponsorship);
5. Have state financial support and statutory authority that limits the level of
time spent on fundraising by senior leaders;
6. Measure performance based on stakeholder and customer feedback rather
than on announcements, jobs created, or other measures that can’t be directly
controlled by economic development organization executives;
7. For regional economic development organizations, they have effective lead
dissemination systems that are transparent, fair, and developed with input
from the local economic development organizations. Effectiveness comes
from the recognition of economic development organizations that they have
to customize the process for their members rather than copy successful
processes in other regions;
8. Rely less on advertising and direct mail than their traditional counterparts;
9. Use widely accepted customer relationship management techniques,
software, and internal business processes;
10. Have a corporate culture that is focused on external conditions (customers
and markets trends), rather than internal processes;
11. Have a commitment to the extended use of training and innovation tools;
and,
12. Are present in community environments that support the need to acquire and
maintain top economic development talent, which is often less true for
traditional economic development organizations.
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Network Effectiveness
In a 2005 paper, “Civic Capital in the Waterloo Region: Enabling Regional
Economic Governance”, the author Jan Nelles identified the emerging growth of
“social capital/civic capital” within Waterloo Region as one of the strengths of the
regional economic development network. Of particular interest in this report is
the discussion of the role of existing institutions, such as CTT and Communitech,
in fostering the growth of regional networks and the creation of institutional
thickness.
The author measures network institutional thickness through a four level, civic
capital creation lense:
Level One: the number of institutions in the network;
Level Two: interaction among network members;
Level Three: the emergence of informal coalitions and hierarchy among
network members; and,
Level Four: shared identity, goals and values.
The author notes that the creation of CTT in 1987 represented a move from level
one to two, and the subsequent creation of Communitech and the Prosperity
Council movement from level two to level three, as other regional leaders within
the network emerged.
The paper notes the historic differences, tensions, and competition among local
Municipalities. The growth of “institutional thickness’ within Waterloo Region is
viewed by the author as a sign that these tensions and competitive instincts have
“mellowed”. The author concludes that: the establishment of CTT, Communitech
and the Prosperity Council, are examples of the positive growth of civic capital in
Waterloo Region; and Waterloo Region’s economic network has yet to reach
Level four (shared identity, goals and values).
A 2012 report prepared by Dr. Tara Vinodrai and colleagues at the University of
Waterloo looked at the role of regional networks in stimulating sector economic
development. The study, entitled “Taking Regional Action: Understanding
Networks in the Local Food, Green Energy & Creative Sectors in Waterloo
Region”, focused on models of governance and collaboration, and examined how
regional approaches facilitate economic development.
Two models emerged: the first is based on a dominant lead agency, and the
second based on an organic approach, with several formal and informal
collaborative networks emerging.
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In summarizing their findings, the researchers noted that: the effectiveness of both
models is mixed; that barriers exist due to the lack of strong leadership from a
structured regional agency, or from within the community; and, the lack of
connectivity among both the sector participants, and with the more structured
economic development community.
This research is consistent with and supportive of the findings of our interview
process, and provides support for the need to address regional economic
development leadership and collaboration improvements if Waterloo Region is to
sustain its current economic success.
4.3 Comparator Community Summary
The economic development characteristics of several sets of communities have
been compared against the broad best practice groupings: Strategy; Organization
and Governance; Coordination; Economic Development Delivery; and Resources.
Some allowances were made for availability of information.
Comparator Communities 1
The first set of tables evaluates: Charlotte, North Carolina; Raleigh-Durham,
North Carolina; Portland, Oregon; and Halifax, Nova Scotia.
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Table 4.3 Communities with Region, Multi-Tiered Economic Development Structures
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Table 4.3 Communities with Region, Multi-Tiered Economic Development Structures Cont’d
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Key Findings
US examples are often driven by state defined economic regions, with
funding tied to participation;
Member city and counties maintain their own economic development
departments and deal with local retention and employment lands;
Private sector support is essential and typically large private utilities
(electricity, gas, coal) play a major role in board leadership, funding and
business recruitment;
Most of these are defined as marketing partnerships and would be viewed as
equivalent to the GTMA or possibly the CTT;
Greater Halifax Partnership is the result of amalgamation and is essentially
the Economic Development Department for Halifax, which merged its own
department with the Partnership in 2006;
The multi-county marketing partnership trend is evident in many US city
regions. Both Charlotte and Raleigh Durham have, over time, added adjacent
counties in response to growth of the regional economy. Both the Charlotte
and Portland regional partnerships have grown beyond state boundaries; and,
In Ontario, regional marketing partnerships are becoming more evident. The
GTMA has been in existence since 1998. The Southwestern Ontario
Marketing Alliance, and the Eastern Ontario Development Initiative are
active in their respective regions. Both Peterborough and Windsor have
established economic development corporations that include the adjoining
counties.
Comparator Communities 2
The second set of communities includes Southern Ontario, two-tier communities
similar to the situation in Waterloo Region.
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Key Findings
All have regional economic organizations/departments;
All have recently developed an economic development strategy;
All have a marketing strategy;
All have responsibility for economic data collection and analysis;
Tourism may be included in the regional mandate;
May assist in business retention;
Employment land information is made available, however ownership remains
with the private sector or local municipalities; and,
Most regions have local municipalities with their own economic
development departments or staffing.
Comparator: External Development Corporations
We have also reviewed from different Ontario examples of external organizations
that are responsible for economic development on managing public real-estate
transactions. These are:
Build Toronto - City of Toronto;
Toronto Land Corporation – Toronto District School Board;
London Economic Development Corporation – City of London; and
Windsor Essex Development Corporation – City of Windsor.
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Key Findings
The two Toronto examples are useful comparators. The other two examples
are single-tier Municipalities with external economic development
corporations;
Both Toronto models have strong private sector real estate leadership on the
board of directors and in executive positions within the corporation;
They are run as real estate development corporations and have governance
structures similar to private sector organizations;
Both Toronto models deal with land that is surplus to the needs of the sole
shareholder, and have shareholder instructions and protocols governing their
relationship with the single shareholder, and the day-to-day operation of the
corporation.
Both have objectives to ensure that revenues from sales are maximized, and
both engage in value added investment in properties to increase return to
their single shareholders.
Operating costs are covered by revenues from sales, or other forms of
disposition.
TLC is required to provide TDSB with annual revenue, as provided for in the
TDSB approved multiyear business plan.
Both have been successful in their first 3 years.
The above analysis and review of best practices indicate that a regional
organization is required to deliver a coordinated regional program and to re-
establish a working relationship among all the stakeholders.
In summary, four key trends that define the nature of economic development
organizational arrangements include:
Business success is more commonly associated with a regional cluster
approach;
Regional business clusters require engagement at a wider regional level;
Single-tier municipalities favour external economic development
organizations; and
Two-tier regional/local municipalities favour a combination of internal and
external economic development organizations.
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Table 4.6 Summary Best Practices
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Table 4.6 Summary Best Practices Cont’d
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Table 4.6 Summary Best Practices Cont’d
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5.0
FRAMEWORK OPTIONS
Five options for delivering economic development services
have been defined that represent a continuum of change and
intervention.
While all are considered potentially feasible, three stand out as
the most practical when evaluated in terms of opportunity and
risk, and one is recommended.
5.1 Economic Development Requirements
In responding to the economic development context in Waterloo Region, and
considering the current issues, the opportunities and the learnings from other
jurisdictions, five options have been identified. It is intended that these options
have the following characteristics:
All are potentially implementable in Waterloo Region;
All respond to the opportunities to a greater or lesser extent;
All are capable of delivering the desired outcomes; and,
All address the basic requirements for economic development in Waterloo
Region.
For an option to be implementable, it requires the achievement of a shared vision
for the goals, processes and responsibilities among all public stakeholders within
Waterloo Region. It implies that a renewed “social contract” is possible and that a
formal agreement could be reached among public stakeholders, that is supported
by business and by the public at large.
All of the options need to respond to the opportunities to market Waterloo Region
and further enhance the economic prosperity of Waterloo Region. Although the
regional economy is facing challenges, it is fundamentally strong and there are
new opportunities to exploit, whether that be foreign direct investment, capturing
new entrants that might otherwise locate in the GTA, or ensuring that existing
successful employers continue to grow within Waterloo Region.
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Each option must be capable of delivering the outcomes that are sought. These
include:
A coherent economic development strategy;
A strong brand and marketing program for the region that resonates and
differentiates;
Successful attraction of new companies across all key target clusters;
Facilitation of the growth and retention of existing companies;
Expansion of the tax base;
Achievement of the broad community vision;
More high paying jobs; and,
A sustainable and growing regional economy.
Each option must be able to address the issues that have been identified. These are
the strategic and operational issues that influence the focus and effectiveness of
the economic development process.
All options must be capable of meeting the fundamental requirements of
economic development. These include:
Planning and governance;
Program delivery;
Land and infrastructure; and,
Resources, staffing and management.
Planning and governance requirements include the provision of:
A regional economic development perspective;
Regional Economic Development Strategy;
Clarity of objectives and responsibilities amongst economic development
organizations;
Coordination and alignment of objectives and activities.
Risk assessment;
Board of directors; and/or,
Political oversight.
Program delivery requirements include:
Effective marketing;
Focus on sectors;
Multiple focus on regional, national & FDI;
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An aggressive, proactive program for business retention and expansion;
Maximize role of private sector;
Accurate and timely business intelligence;
Advocacy of the region’s economic interests to other levels of government;
Land and infrastructure requirements encompass:
The creation and delivery of an employment land strategy; Clear objectives
for creating, maintaining or monitoring the quantity, quality and location of
available shovel ready land; and,
Coordination of infrastructure investment.
Resources, staffing and management include:
Effective management;
Recruitment of staff;
Sustainable budget support;
Performance standards and indicators; and,
A proactive culture.
Figure 5.1 Development Framework: Foundations, Strategies and Outcomes
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5.2 Organizational Options
In the course of preparing this report the consulting team considered a wide range
of possible options for the requested regional economic development framework.
Our analysis of the current economic development and local governance
institutional arrangements, our extensive consultation with the broader economic
development network, and the identification of local norms and values, produced
key benchmarks to guide the analysis. This provided the boundaries within which
to establish the best available options.
The following Five Options all offer potentially viable outcomes. Each has its
strengths and weaknesses and each will appeal to some stakeholders more than
others. They are snapshots of different combinations of policy, governance,
programming, marketing, advocacy, and employment land development
initiatives that address the economic development needs of Waterloo Region. The
options have been selected to illustrate the mix of different approaches available
to decision makers along an implementation “degree of change” continuum.
The essential difference is not so much the ends, but in the means of
implementing a strategy. In particular, each option reflects a different approach to
engaging municipal stakeholders.
A distinction is made between the governance and organizational need to create
and deliver a coherent strategy and the approach to delivering appropriate
amounts of shovel ready land. The former focuses on strategic planning,
marketing, business community relations, advocacy, analysis, and ensuring
community consensus around ends and means. The latter potentially focuses on
direct capital investment, entering into contracts and joint ventures, financing
agreements, acquisition, servicing, marketing and disposition of real property.
None of the Five Options require a change to the role of the Region of Waterloo
as defined in the Municipal Act. The Region of Waterloo is free to assert a more
direct role in the planning, coordination, and delivery of economic development.
However, as discussed in Section 6.0, the Municipal Act would need to be
modified to enable the Region of Waterloo to have a direct role in the
“acquisition, development, and disposal of sites for industrial, commercial and
institutional uses”. See Appendix B.
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Option 1: Status Quo
The Status Quo Option maintains business as usual with the responsibilities as
they are now. This is a continuation of the existing collaborative model where the
Region of Waterloo has a supportive but generally passive role and the delivery of
economic development is primarily the responsibility of the Municipalities, with
the CTT providing marketing for foreign direct investment. Change and possibly
improvements, will occur in an ad hoc fashion, usually in response to a crisis
situation or to politically sensitive issues as they arise.
Option 2: Alignment and Coordination
The theme of Option 2 is to improve the alignment of economic development
objectives amongst stakeholders and to improve the coordination of program
delivery by the various stakeholders. This would maintain the existing governance
structure, but would engage the Regional Municipality of Waterloo with an
explicitly regional perspective.
The defining features of Option 2 are:
The Region of Waterloo establishes an Economic Development Policy Office
under the Chief Administrative Officer (preferred) or under the Planning
Commissioner’s office;
The option of Enhancing Strategic Alignment and Coordination of the
economic development program delivery is a deliberate move away from the
Status Quo and yet does not entail major organizational changes;
The economic development policy office would advocate and take the lead
for key strategic projects including: Waterloo Region Economic
Development Strategy; regional rebranding; implement planning and
marketing of strategic employment lands; rural services improvements and
network collaboration and coordination enhancements; strategic business
retention and attraction coordination; and enhanced regional data collection,
analysis and distribution;
The CTT and other local organizations would continue to focus on their
existing mandates;
The local Municipalities would continue to be responsible for business
retention, liaison with local business, and would retain their existing roles
with regard to ensuring available land supply; and,
No amendment to the Municipal Act would be required.
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Option 3: Development Corporation (8 Shareholders)
Option 3 moves away from the existing organisational responsibilities and moves
the primary responsibilities for implementing economic development to a
Waterloo Region Economic Development Corporation (WREDC) that is
controlled by the Region of Waterloo and the 7 local Municipalities. Local
Municipalities would retain a local economic development role.
The defining features of Option 3 are:
An Office of Economic Policy would be established by the Region of
Waterloo. It would be responsible for coordinating the creation of the
Waterloo Region Economic Development Strategy, in concert with the 7
local Municipalities and local shareholders;
The new Waterloo Region Economic Development Corporation (WREDC) is
formed under the control of the Region of Waterloo and the 7 local
Municipalities, with the responsibility of implementing the Waterloo Region
Economic Development Strategy;
Services agreements between the Municipalities and the corporation define
the role of the Corporation, its mandate, reporting relationship and resources,
corporate structure, objectives, KPIs, etc.;
The WREDC could replace CTT or the existing CTT could be transformed
into the WREDC. The latter approach would require changes to the structure
and governance of CTT;
The key functions of the Waterloo Region Economic Development
Corporation would include: the implementation of a Regional Economic
Development Strategy; strategic marketing and rebranding of Waterloo
Region; employment land marketing; business and talent attraction and
development; business community relations; business retention (strategic
employers, and investors only); advocacy of economic development; and
regional data collection, analysis and publication;
Local Municipalities would continue to have a role in local economic
development but the local role would be guided by the WREDC within the
context of a regional strategy. They would retain control of their current
employment land holdings;
The local Municipalities would continue their role in local business retention,
local marketing, and land marketing, where that is an established activity.
However, all matters of a regional and strategic nature would be coordinated
by the WREDC. This includes regional marketing and messaging, providing
information and data, advocacy, and coordination of business relationship
management;
The details of the interface between the local and the regional economic
development activities would be refined through the Regional Economic
Development Strategy; and,
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The proposed model would not require changes to the Municipal Act
regulations.
It would have a professional board of directors appointed by the
shareholders.
Option 4: Regional Economic Development Corporation (full responsibility)
Option 4 is similar to Option 3 except that all economic development activity
becomes the responsibility of WREDC on behalf of its municipal shareholders. In
this case, the economic development activities being carried out by local
municipalities would be transferred to the new organization. Other defining
features are:
The Waterloo Region Economic Development Corporation is formed under
the control of the Region of Waterloo and the local Municipalities;
The Waterloo Region Economic Development Corporation would be
responsible for coordinating the creation of a the Waterloo Region Economic
Development Strategy, in concert with the 7 local Municipalities and local
shareholders, and be responsible for implementing the Waterloo Region
Economic Development Strategy;
A services agreement between the Municipalities and the Development
Corporation would define the Corporation’s role, mandate, reporting
relationship and resources, corporate structure, objects, KPIs, etc.;
The Waterloo Region Economic Development Corporation’s key functions
would include: implementation of a regional economic development strategy;
marketing and rebranding of Waterloo Region; employment land marketing;
business and talent attraction and development; business community
relations; business retention; advocacy of economic development; and
regional data collection, analysis and publication;
All economic development functions currently carried out by the local
Municipalities would be carried by the WREDC;
The WREDC could replace CTT or the existing CTT could be transformed
into the WREDC. The latter approach would require changes to the structure
and governance of CTT;
The proposed model does not require changes to the Municipal Act
regulations, unless the Region of Waterloo becomes directly involved in the
ownership, sale, leasing or development of employment lands; and,
The budgets of local municipalities would be rebalanced to reflect the shift in
economic development responsibilities.
It would have a professional board of directors appointed by the
shareholders.
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Option 5: Consolidate Economic Development Functions and Services at
the Region
Under this Option, all economic development functions become the responsibility
of a Region of Waterloo Department of Economic Development. The Region of
Waterloo would effectively take over the planning and delivery of economic
development services on behalf of all Municipalities within the region.
The defining features include:
A new division would be formed within the Region of Waterloo
administrative structure. Services agreement between the local Municipalities
and the Region of Waterloo will define the roles, mandate, resources,
objectives, KPIs, etc.;
Key functions of the organization would include: preparation of the Waterloo
Region Economic Development Strategy; implementation of a regional
economic development strategy; marketing and rebranding of Waterloo
Region; employment land marketing; business and talent attraction and
development; business community relations; business retention; advocacy of
economic development; and regional data collection, analysis and
publication;
An amendment to the Municipal Act would not be required unless the ROW
becomes directly involved in employment land ownership and development;
An inter-municipal service agreement would be required on the role and
mandate of the new economic development division that will provide local
services to all 7 Municipalities; and,
Municipal budgets would need to be rebalanced to reflect the shift in
economic development responsibilities to the Region of Waterloo.
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5.3 Evaluation of Options; Risk & Opportunities
The following evaluation of the options uses 6 criteria to assess risk and
opportunities in each of the 5 options:
Ease of implementation;
Ability to produce an effective regional strategy;
Ability to efficiently deliver core economic development;
Capability to ensure employment land goals are achieved;
Ability to secure sustainable funding; and,
Institutional risk.
Two options, Option1: Status Quo and Option 5: Consolidation of all Economic
Development Services under the Region of Waterloo, are deemed to be
undesirable or impractical. The Status Quo has not been able to create or deliver a
coherent regional economic development strategy, which is essential to the future
growth and prosperity of the region. Option 5, the consolidation of all regional
economic development activity and responsibility within regional government, is
deemed impractical in the foreseeable future as local municipalities may not be
willing to transfer control of all economic development responsibilities to the
Region of Waterloo.
In our view, the most practical options are Option 2: Alignment and Coordination,
Option 3: Development Corporation, which involves participation by all
municipal entities, but with some local economic development functions retained
by the Municipalities, and Option 4 which has a similar governance structure to
Option 3, but with a transfer and consolidation of all economic development
functions currently carried out by local Municipalities.
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S Our preferred approach is Option 3. Our recommendation is that Waterloo Region
should have the objective of consolidating most economic development functions
under a single organizational umbrella that is responsible to the Region of
Waterloo, and the seven local Municipalities. The advantages of this are a clear
and transparent focus, accountability, and more efficient deployment of staff and
financial resources.
A single regional organization should be a non-profit agency that is separate from,
but ultimately controlled by, the 8 Municipal partners within the region. Its
mandate would be:
To implement the Waterloo Region Economic Development Strategy;
To market the region to foreign, national, and local audiences;
To facilitate and manage relationships with existing business within the
region; and,
To provide advocacy for Waterloo Region to other levels of government on
economic development matters.
Municipalities would retain responsibility for local economic development issues
within the coordinating umbrella of the WREDC. The local Municipalities would
continue local business retention activities. The WREDC would be responsible for
managing strategic business relationships, for marketing the region globally and
locally, and would provide research and information to support regional
marketing. Local community marketing would be coordinated with regional
marketing to ensure consistent messaging.
The Waterloo Region Economic Development Corporation would not become
directly involved in the development and sale of land (more on this in Section
6.0).
The Waterloo Region Economic Development Corporation would be funded by
the Region of Waterloo, the local Municipalities and the private sector.
It is recommended that an Office of Economic Policy be established within the
ROW which would be responsible for coordinating the creation of a Waterloo
Region Economic Development Strategy and a Regional Employment Land
Strategy in conjunction with the area Municipalities. It would also work with the
WREDC and the local Municipalities to set annual budgets. However, the office
of Economic Policy would not be responsible for implementation.
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We recommend that the CTT be incorporated into the WREDC or that the CTT
mandate be expanded so a new “super” CTT transitions to become the new
Waterloo Region Economic Development Corporation. The structure and
governance of the new organization would need to transition from the current
CTT structure and governance. In particular, the WREDC should be governed by
an independent board of directors that is directly responsible to the municipal
“shareholders”. The professional board should be comprised of experienced
people from the private sector and institutions.
Although Option 3 is recommended as the most practical and effective way to
implement a regional economic development strategy, we recognize that this
could evolve, over time, to Option 4. With this option, all of the local economic
development functions move to the WREDC as the single implementing agency
for economic development within the region.
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6.0
EMPLOYMENT LAND
OPTIONS
It is an essential requirement of successful and transformational
economic development that there be a sufficient supply of
available employment land at all times.
It is recommended that a focused mix of private and public sector
initiatives be undertaken.
6.1 Industrial and Business Park Lands
The existing and potential future inventory of Industrial and Business Park lands
is distributed across the region, but is primarily located within the three Cities and
the Townships of Woolwich and Wilmot. The data base is maintained by the
Region of Waterloo, but has not been updated since 2009.
Table 6.1 Region of Waterloo Industrial and Business Park Vacant Land Inventory – 2009
Source: Appendix 4 – “Region of Waterloo Industrial and Business Park Vacant Land Inventory”
Region of Waterloo Cambridge Kitchener Waterloo Woolwich North Dumfries Wilmot Wellesley
Designated
Serviced Total
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Designated
Serviced
(Acres)
Available for use by
owners285.44 152.16 58.63 49.26 8.90 5.10 11.39 0.00
Constrained Land 440.02 171.50 82.62 10.02 168.00 0.00 7.88 0.00
Potentially in
transition to other
uses
50.92 0.00 49.72 1.20 0.00 0.00 0.00 0.00
TOTAL 2094.46 820.31 517.20 305.76 244.46 5.10 201.63 0.00
Available for sale or
use immediately by
owner
Anticipated to come
on to the market in
the future
460.86 231.51 132.00 18.09 67.56 0.00 11.70 0.00
857.22 265.14 194.23 227.19 0.00 0.00 170.66 0.00
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Figure 6.1 Regional Employment Lands
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The price of vacant industrial land declines as one moves west from the GTA
towards London. The prices in Waterloo/Kitchener/Cambridge are about half that
of Milton, Oakville and Burlington. Given Waterloo Region’s strong locational
attributes and its location west of the GTA, there is a compelling proposition for
employers who value access to the Waterloo Region talent pool and its proximity
to the GTA.
As to development charges (DC’s per acre), Waterloo/Kitchener/Cambridge, are
generally lower than the GTA municipalities, although higher than Hamilton,
Guelph, London and Brantford.
With its educational, entrepreneurial, cultural, and transit assets and lower costs,
Waterloo Region will become an increasingly attractive location for new and
expanding businesses relative to the western GTA municipalities. Peel and Halton
employment land supply will be largely depleted within 10 years. Even if
additional land is designated, it is clear that employment land prices in the
western GTA will rise relative to exiting prices in Waterloo Region. This will
present competitive opportunities for Waterloo Region over the longer term.
Figure 6.2 Vacant Industrial Land Prices and Development Charges (per acre)
Bra
ntf
ord
Lon
do
n
Ham
ilto
n
Cam
bri
dge
Kit
che
ne
r
Gu
elp
h
Wat
erl
oo
Hal
ton
Hill
s
Mar
kham
Milt
on
Bu
rlin
gto
n
Oak
ville R
ich
mo
nd
Hill
Vau
ghan
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Lan
d P
rice
(p
er
acre
)
Average Industrial Land Prices
Lon
do
n
Bra
ntf
ord
Ham
ilto
n
Gu
elp
h
Cam
bri
dge
Kit
che
ne
r
Milt
on
Bu
rlin
gto
n
Wat
erl
oo
Hal
ton
Hill
s
Oak
ville
Vau
ghan
Mar
kham
Ric
hm
on
d H
ill
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
De
velo
pm
en
t C
har
ges
(pe
r ac
re)
Development Charges
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6.2 Ensuring Land Supply
6.2.1 Need for a Risk Perspective
Ensuring that there is an appropriate supply of employment land is central to the
economic development of Waterloo Region. This is well understood by all
stakeholders but there is uncertainty about how much land is required, where it
should be provided, what parcel size, what locational attributes should developed
land exhibit, and the best approach for ensuring supply.
One of the challenges is that there is no definitive explanation of “appropriate
supply” of employment land. This depends very much on perspective. At a broad
urban planning level, the perspective is to ensure that the expected growth in
labour force can be accommodated by long term supply of employment land. The
timeframe is typically long, and a potential mismatch between supply and demand
of employment land are long term, and therefore the risks are low because
adjustments and corrections can be made in the long planning cycle.
The perspective of economic development policy is more short and medium term.
The pipeline of approvals and servicing needs to accommodate visible trends and
expectations, and to ensure that the land market is not going to be constrained and
drive up prices or focus on the wrong set of locational attributes. This short and
medium term perspective is sensitive to the budgeting process for the
infrastructure required to translate land policy into available land supply.
It is here, at the short and medium term perspective, that the risks of a mismatch
between supply and demand are potentially high. The risks of a mismatch are high
because the inventory of vacant land that is designated, serviced, available for sale
and immediate use, with an appropriate spectrum of location, size, and price, is an
essential requirement for economic development. The ability of Waterloo Region
to market the region to new entrants, and to retain the successful and growing
companies within the region, depends on the absolute certainty that supply is
continually available.
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If there is an “oversupply” of employment land in the short and medium term, that
just means that it may take a bit longer to absorb supply than originally expected,
but it helps to maintain a competitive local land market in the short term.
However if there is a lack of available supply, then the region’s marketing
strategy and retention strategy can be directly compromised. This can quickly
become “negative” marketing that creates conditions for a failed marketing effort
and wasted economic development resources. Hence the need for a risk
perspective when considering the immediate, medium and long term supply of
employment land.
6.2.2 Estimates of Supply and Demand for Employment Land
The issue of how to define, create, monitor and manage employment land,
particularly industrial and business park land within Waterloo Region, has been
the subject of numerous studies and reports over the past decade. The issues that
have been raised include the following:
There appears to be an emerging shortage of business park land that is
suitable for technology companies. This view has been challenged to some
extent, with an assumption that technology firms are more “footloose” and
don’t necessarily seek technology orientated business parks in Waterloo
Region.
Technology firms seek locations where talent wants to work. This is often as
much a lifestyle issue as a cost or locational one. This often means a
university environment, a “downtown” environment, or a greenfield
“technology campus” with excellent amenities, transit, recreation and
services often in a mixed use setting. Redmond, Portland, Palo Alto,
Mountain View, Route 128 are examples.
There is a need to focus on the need for shovel ready land and the risk to
Waterloo Region if suitable land is not available.
Given the length of the planning and development cycle, it is essential that
there be a continual 10 years potential supply in the approval cycle at any
given time and there should be a continuous supply of vacant and available
land that is equivalent to at least 3-5 years absorption.
Brownfield sites can be, but are not always, within an urban fabric that is
attractive to a technology cluster.
Some corporations are reluctant to locate in a brownfield redevelopment if
their strategy is to avoid any likelihood of environmental liabilities or if they
need to ensure flexibility for long term expansion, without the need to move
to another site.
The broader planning issue is to create the right balance between
employment growth and land demand including brownfield, redevelopment,
intensification and greenfields.
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6.2.3 Role of the Private and Public Sectors
The present system has direct involvement by the three Cities; Kitchener,
Waterloo and Cambridge, in the development of industrial and business park
land. The townships have elected to minimize their direct role in the
development of land.
The role of the private sector has been a subject of long discussion. The
participation of the private sector to-date has primarily focused on the
building of structures for sale or lease – most often on land purchased from
the Municipalities.
There are advantages to private sector involvement. It reduces the need for
public capital and can provide a wider range of tenure options than would
ordinarily be the case for public sector land development.
The private sector may be increasingly attracted to Waterloo Region because
of the lower land values and the prospect that these could rise as the most
attractive sites in the western GTA are absorbed by the market.
The private sector has demonstrated an appetite for the adaptive reuse of
older structures within the urban boundary and for the redevelopment and
intensification of brownfield sites.
Over time, there is an opportunity for the private sector to take a larger role
in the provision of green field employment locations.
There also are many advantages of direct public sector involvement and the
development of industrial and business park land. There is a well-established
and successful precedent.
The region’s public sector has been very successful in providing technology-
oriented business park land.
It is easier for the public sector to create successful joint ventures or
partnerships that involve multiple jurisdictions.
The public sector can more readily develop larger lots and hold them for
strategic disposition rather than be pressured to subdivide and sell to generate
cash flow as would the private sector.
The “East Side Lands” or Prime Industrial Strategy Reserve in Woolwich
and Cambridge has been considered for development for many years.
The “East Side Lands” are close to the Waterloo International Airport but
don’t encompass it. The airport needs to be included. If the airport is to be
successful in the long term, there needs to be control the employment land
that is adjacent and proximate. Airport operations are vulnerable to land use
conflicts and political opposition. Unless the surrounding land is controlled
by the public domain, the airport will be unable to achieve its full long term
potential as an employment generator.
Other strategic lands may be identified through the Regional Economic
Development Strategy.
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6.2.4 Alternative Approaches to Providing Industrial & Business Park
Lands
Six approaches to ensuring a supply of industrial and business park lands were
examined:
Reliance on the private sector;
A mix of municipal land development and private sector (maintaining the
existing approach);
Direct involvement by the Region of Waterloo in strategic land development;
A mixed public/private approach that includes the use of a special purpose
public land development corporation;
A public monopoly that is jointly owned by all municipal jurisdictions for the
development and disposition of employment land; and,
A public monopoly that is controlled by the Regional Municipality of
Waterloo.
Table 6.2 summarises and compares the salient characteristics of each of the six
approaches. The private sector approach has the advantage of shifting the
investment and implementation burden firmly to the private sector. This has many
other advantages but the obvious disadvantage is that the private sector may avoid
large and complex projects like the East Side Lands. More to the point, there is no
guarantee that the private sectors will land bank large sites without public support,
nor is there a guarantee that they will be willing to make a deal with a large
strategic employer.
The current model (Option 2), which is a mix of municipally owned and privately
owned business park land, has been generally successful to date. However it is
asymmetrical because not all local municipalities are able or willing to participate.
The third option would see the Region of Waterloo becoming more directly
involved in the development of the strategic employment land.
The fourth approach includes public and private involvement and would see the
creation and use of a special purpose land development corporation that has a
narrow mandate to deal with creating new strategic employment lands. This
provides much more certainty about the availability of large or special sites and
avoids future pressures for the conversion of employment land to other purposes.
At the same time it will require public investment for capital and operating costs
until revenues from sufficient land sales accrue.
The fifth and sixth options are based on the concept of a public monopoly of
employment lands. They are viewed as unnecessary and the wrong direction for
Waterloo Region.
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Our preferred approach is Option 4: Special Purpose Public Development
Corporation with the following elements:
1. The Employment Land Strategy is created in conjunction with the Waterloo
Region Economic Development Strategy. The land strategy would be
coordinated by a newly created Office of Economic Policy with the Region
of Waterloo and the Municipalities.
2. The existing municipal role in employment land development remains.
3. A special purpose corporation is established to develop strategic employment
lands on the east side, including those adjacent to the airport and other
strategic lands as determined:
o Professional board of directors is recruited;
o The mandate to be formalized, and business plan created and a
development plan for the East Side and Airport;
o Other strategic lands could be included as determined through the
Regional Economic Development Strategy and the Regional
Employment Land Strategy.
o Joint venture development agreements with private land owners if
required;
o Capitalized by the Region of Waterloo and the Municipalities;
o Existing public land in Cambridge and Woolwich is transferred to the
special purpose Development Corporation. This could include a transfer
of land, with consideration, from the Ontario Infrastructure and Lands
Corporation;
o A detailed plan and development program is put in place;
o Phased investment in servicing is committed by the shareholders;
o Land is marketed directly to industries and to private developers;
o The Corporation is structured so that it can be sold wholly or in part to
private / institutional investors at some future date if desired.
4. In the longer term, the major role of developing and selling employment land
should transition to the private sector.
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CONCLUSIONS,
RECOMMENDATIONS &
IMPLEMENTATION
7.1 Conclusions
The report provides: an analysis of the current economic development framework
and governance structures; a review of the issues around the current economic
development functions in Waterloo Region; and an analysis of identified
comparator communities and prevailing best practices relevant to the current
economic and governance structures in Waterloo Region. This has led to the
identification and analysis of viable options for implementing a new Waterloo
Region Economic Development Strategy, and the identification and analysis of
options to ensure an appropriate supply of employment land is available to new
and expanding employers.
The Existing Economic Development Framework and Network
The existing economic framework has successfully served the Waterloo Region
well for many years. However, a number of strategic weaknesses in the current
framework have been identified, resulting in a system that will not meet the needs
of the regional economy going forward. These identified weaknesses include:
Absence of a coordinated regional approach;
Gaps in data collection, analysis and info sharing;
Dated/fragmented branding and marketing;
Resource disparity between urban and rural;
Trust issues; and,
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Poor alignment of stakeholder understanding of economic development.
Comparative Analysis
A number of comparator communities were evaluated to identify current trends
and best practices in regional and local economic development. Four key trends
that define the nature of economic development organizational arrangements
include:
Business success is more commonly associated with a regional cluster
approach;
Regional business clusters require engagement at a wider regional level;
Single-tier municipalities favour external economic development
organizations; and
Two-tier regional/local municipalities favour a combination of internal and
external economic development organizations.
Requirements for Waterloo Region’s Economic Development
An effective economic development process for Waterloo Region must be able to
deliver the following outcomes:
A coherent economic development strategy;
A strong brand and marketing program for the region that resonates and
differentiates;
Successful attraction of new companies across all key target clusters;
Facilitation of the growth and retention of existing companies;
Expansion of the tax base;
Achievement of the broad community vision;
More high paying jobs; and,
A sustainable and growing regional economy.
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7.2 Recommendations
Economic Development Service Delivery and Employment Land
Strategy
A three way distinction is made between the governance and organizational need
to create a coherent strategy, to implement an economic development strategy,
and the approach to delivering appropriate amounts of shovel ready land. The first
focuses on strategic planning, the second focuses on marketing, business
community relations, advocacy, analysis, and ensuring community consensus
around ends and means. The third focuses on direct capital investment, entering
into contracts and joint ventures, financing agreements, acquisition and
disposition of real property.
Recommendation: An Office of Economic Policy should be established at the
Region of Waterloo with a mandate to coordinate the creation of an appropriate
Regional Economic Development Strategy. This would be created in conjunction
with the 7 local Municipalities. As part of this process a Regional Employment
Land Strategy would be defined that meets the needs of the Regional Economic
Development Strategy.
Framework Recommendations:
Recommendation: Waterloo Region should have the objective of consolidating
most economic development functions under a single organizational umbrella.
The advantages of this are a clear and transparent focus, accountability, and more
efficient deployment of staff and financial resources.
Recommendation: That a Waterloo Region Economic Development Corporation
(WREDC) be established with a mandate to deliver a full spectrum of economic
development services within Waterloo Region. Its purpose would be to implement
economic strategy, but not to be involved directly in employment land
development.
Recommendation: That the WREDC be under the formal control of the Region
and the 7 local Municipalities.
Recommendation: That CTT be incorporated into the WREDC or that the CTT
mandate be expanded so that CTT transitions to become the new WREDC. The
structure and governance of the new organization would need to transition from
the current CTT structure and governance, in order to reflect the new
responsibilities and accountability of the new organization.
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Recommendation: That a professional board of directors be established with
substantial representation from the private sector.
Recommendation: The WREDC should be a non-profit agency that is separate
from, but ultimately controlled by, the 8 Municipal partners within the region.
Recommendation: That the WREDC enter into service agreements with the local
Municipalities that defines the specific economic development roles and
responsibilities of all parties.
Recommendation: The mandate of the WREDC should be:
To implement the Waterloo Region Economic Development Strategy;
To be responsible for all regional marketing; foreign, national and local;
To facilitate and manage relationships with existing strategic businesses
within the region, and to coordinate business relationship management with
the local Municipalities;
To coordinate the collection, analysis, and publication of regional data and
information that is relevant to the planning, marketing and monitoring of
economic development; and,
To manage and be responsible for advocacy with other levels of government
on economic development matters.
Recommendation: The organization should be funded by the Region of
Waterloo, the local Municipalities and the private sector.
Recommendation: Local Municipalities would retain responsibility for specific
local economic development issues within the coordinating umbrella of the
Waterloo Region Economic Development Corporation, as defined in the strategy
and service agreements. Local Municipalities would:
Continue to be actively engaged in local business retention, with the
WREDC responsible for organizations of strategic regional importance.
Continue to provide local marketing outreach, but with coordinated
market themes and consistent factual material provided by the WREDC.
Recommendation: It is essential that the Waterloo Region Economic
Development Corporation be a multi-party partnership among local and regional
government, the private sector and major institutions.
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Employment Land Recommendations:
The perspective of economic development policy is more short and medium term
than the typical long term perspective of the Official Plan. It is here, at the short
and medium term perspective, that the risks of a mismatch between supply and
demand are potentially high. The risks of a mismatch are high because the
inventory of vacant land that is designated, serviced, available for sale and
immediate use, with an appropriate spectrum of location, size, and price is an
essential requirement for economic development. The ability of Waterloo Region
to market the region to new entrants and to retain the successful and growing
companies within the region depend on the absolute certainty that supply is
continually available.
Recommendation: Where a Municipality owns employment land, its existing
municipal role in employment land development can remain.
Recommendation: That a Special Purpose Corporation (SPC) be established to
develop strategic employment lands on the east side, including those adjacent to
the airport, and other strategic lands as determined.
Recommendation: The Special Purpose Corporation is governed by a
professional board of directors responsible to the municipal shareholders, which
would include the Regional Municipality of Waterloo.
Recommendation: Take steps to change the Municipal Act to enable the
Regional Municipality to be involved in the “acquisition, development and
disposal of sites for industrial, commercial, and institutional uses”.
Recommendation: That a mandate be formalized, and business plan created and
a development plan prepared for the East Side and Airport.
Recommendation: To enter into joint venture development agreements with
private land owners if required.
Recommendation: To be initially capitalized by the Region of Waterloo and the
Municipalities.
Recommendation: Existing public land in the East Side of Cambridge and
Woolwich to be transferred to the Special Purpose Development Corporation.
This could also include a transfer of land, with consideration, from the Ontario
Infrastructure and Lands Corporation.
Recommendation: A detailed plan and development program is put in place.
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Recommendation: Phased investment in servicing is committed by the
shareholders.
Recommendation: Land is marketed directly to industries and to private
developers.
Recommendation: The Corporation should be structured so that it can be sold
wholly or in part to private / institutional investors in the future if desired.
Recommendation: In the longer term, the major role of developing and selling
employment land should transition to the private sector.
7.3 Implementation
The following time line chart summarizes the main action tasks that will be
required over the next two years to implement the recommendations. The
description of tasks should be considered as a general indication only. It is
expected that the Regional Economic Development Strategy will generate a more
detailed implementation framework. The phases are described briefly below in
Table 7.1.
Table 7.1: Proposed High Level Implementation Plan
A M J J A S O N D J F M A M J J A S O N D
Phase 1: Strategy & Consensus
1.1 Reach Consensus on the Need for a Regional Economic Strategy
1.2 Establish Office of Economic Policy (OEP)
1.3 Undertake Regional Economic Development Strategy
1.4 Undertake Regional Employment Land Strategy
1.5 Municipal Act Change
Phase 2: Transition to Development Corporation
2.1 Establish Articles, Legal Entity & Governance Structure
2.2 Establish Preliminary Budget
2.3 Select Chair & Board of Directors
2.4 Selection of CEO, Staff
2.5 Economic Strategy Implementation Plan
2.6 Service Agreements with Municipalities
2.7 Implementation of Strategy Commences X
Phase 3: Employment Land Implementation
3.1 Confirm Approach
3.2 Confirm Priorities & Budgets
3.3 Establish Implementing Agency
3.4 Implementation Commences X
ACTIVITY Quarter 3 Quarter 4
2014
Quarter 1 Quarter 2Quarter 4
2013
Quarter 3Quarter 2
STAKEHOLDER CONTACT
LIST
A
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Stakeholder Contact List
The following is a list of the stakeholder organisations referred to in chapter three,
that were consulted as part of the consultation phase of the study. This list consists
of individuals from the 8 Waterloo Region municipalities, business associations,
post-secondary institutions, labour force development groups, nongovernmental
organisations, provincial organisations and political figures.
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Waterloo Economic Development Study Stakeholder Contacts
Stakeholder Contact Name E-mail Phone Address
CITIES
City of Cambridge Bo Densmore, Director of
Economic Development
[email protected] 519.740.4536 X 4511 Cambridge City Hall
50 Dickson Street,
P.O. Box 669
Cambridge, ON N1R 5W8
City of Kitchener Rod Regier- Executive
Director of Economic
Development
519. 741.2506 (Rod Regier) 200 King Street West., Kitchener
City of Waterloo Patricia Rutter-Economic
Development Officer
[email protected] 519-747-8707 The City of Waterloo, c/o Waterloo City
Hall
100 Regina Street S., Waterloo ON
Canada N2J 4A8
TOWNSHIPS
Township of North Dumfries Rodger Mordue, CEO email from website 519-621-0340 ext. 11/230 or
toll free: 1-800-563-5595
1171 Greenfield Road, R.R.#4,
Cambridge, Ontario - N1R 5S5
Township of Wellesley Sarah Peck Junior Planner [email protected] and
519.699.4611 Township of Wellesley, 4639Lobsinger
Line, R.R. # 1 St. Clements, Ontario N0B
2M0
Township of Wilmot Andrew Martin - Planner,
Economic Development
[email protected] 519.634.8444 X 245 60 Snyder's W Baden, N3A 1A1
Township of Woolwich Laurel Davies Snyder -
Laurel
Economic Development &
Tourism Officer & David
Brennan CAO
Laurel: 519.669.1647 X 6020 Township of Woolwich
24 Church Street West,
P.O. Box 158,
Elmira, ON N3B 2Z6
WATERLOO REGION
Region of Waterloo Brooke Lambert Principal
Planner,. Brownfields
Coordinator. Mike Murray
Chief Administrative Officer
and Rob Horne
Commissioner of Planning,
Housing and Community
Services.
[email protected] 519.575.4500 X 3113 Planning, Housing & Community
Services. 150 Frederick Street, 8th Floor.
Kitchener, ON N2G 4J3
Highlighted contacts are those who were interviewed.
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Waterloo Economic Development Study Stakeholder Contacts
Stakeholder Contact Name E-mail Phone Address
WATERLOO REGION CONT'D
Canada's Technology Triangle John Jung, CEO [email protected] 519.747.2541 X 101 260 King St. West, 3rd Floor, Kitchener,
ON N2G 1B6
Region of Waterloo International
Airport
Chris Wood -Airport General
Manager
[email protected] 519-648-2256 ext. 8502 N2H 6R2
Waterloo Regional Tourism
Marketing Corporation
Tracey Desjardins,
Executive Assistant,
Economic Development
[email protected] 519.741.2957 260 King Street West #102 Kitchener, ON
N2G 1B1
Creative Enterprise Initiative /
Creative Enterprise Enabling
Organization
Heather Sinclair, CEO of
The Creative Enterprise
Initiative
[email protected] 519-804-2233 Ext. 3 Creative Enterprise Initiative
151 Charles Street West, Suite 100
Kitchener, ON N2G 1H6
Prosperity Council of Waterloo
Region
Anne Lukin
Manager Strategic
Relationships
Canada's Technology
Triangle Inc.
[email protected] 519-747-2541 ext 402 57 Erb Street West
2nd Mezzanine
Waterloo, Ontario N2L 6C2
BUSINESS ASSOCIATIONSCambridge Chamber of
Commerce
Greg Durocher - General
Manager
[email protected] (519) 622-2221 750 Hespeler Road
Cambridge, ON N3H 5L8
Communitech Iain Klugman, President,
Communitech Technology
Association & Kathy
Thompson Executive
assistant
Iain: (519) 888-9944 x 22
Kathy: 519-888-9944 ext.
2021
295 Hagey Boulevard, Accelerator
Building Suite 16, Waterloo ON Canada
N2L 6R5
Downtown Cambridge Galt On
The Grand Business
Improvement Association
Andrea Stebbings, Executive
Director, Downtown
Cambridge BIA
[email protected] (519) 622-3510 55 Ainslie St. North
Cambridge, Ontario, Canada
N1R 3J6
Highlighted contacts are those who were interviewed.
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Waterloo Economic Development Study Stakeholder Contacts
Stakeholder Contact Name E-mail Phone Address
BUSINESS ASSOCIATIONS CONT'D
Greater Kitchener-Waterloo
Chamber of Commerce
Ian McLean, President &
CEO
[email protected] (519) 749.6038 80 Queen Street North Kitchener, ON
N2H 2H1
Hespeler Village Business
Improvement Area
Karen Grant, Executive
Director, Hespeler Village
B.I.A.
[email protected] 519-740-4650 ext. 7266 P.O. box 29006, 101 Holiday Inn
Dr.Cambridge, Ontario N3C 0A0
Kitchener Downtown Mark Garner, Executive
Director
[email protected] 519.744.4921 ext 401 29 King Street East, Kitchener, ON N2G
2K4
Manufacturing Innovation Network Valerie Machado, Business
Dvlp. Officer
[email protected] 519 741-2367 200 King Street West, Kitchener, ON
Preston Town Centre Business
Improvement Area
Tony Schmidt, Chair [email protected] Preston Towne Centre B.I.A.
c/o Etcetera
761 King Street
Cambridge, ON N3H 3N7
The Uptown Waterloo Business
Improvement Area
Patti Brooks [email protected] 519.885.1921 Suite 160, 100 Regina Street South
Waterloo, Ontario, N2J 4P9
Canada
LABOUR FORCE DEVELOPMENT
Business & Education
Partnership of Waterloo Region
Alayne Hynes - Executive
Director
[email protected] 519.888.9944 X 2047 295 Hagey Blvd, Suite 16
The Accelerator Building
Waterloo, ON N2L 6R5
David Johnston Research Park Carol Stewart -Manager of
Business Development
[email protected] 519-888-4567 ext.36339 David Johnston Research + Technology
Park
200 University Ave. W., GSC 228
Waterloo, ON N2L 3G1
Waterloo Region Immigrant
Employment Network
Arran Rowles -Manager [email protected]
Waterloo Region Small Business
Centre
Chris Farrell - Manager [email protected] 519.741.2604 200 King Street West., Kitchener
Wellington-Waterloo Community
Futures
Jana Reichert - Economic
Development Officer
[email protected] (519) 837.2600 ext. 2525 294 Mill St. East
Elora, Ontario
N0B 1S0
Workforce Planning Board of
Waterloo Wellington Dufferin
Carol Simpson Executive
Director
[email protected] (519) 622-7122 218 Boida Ave, Unit 5
Ayr, Ontario N0B 1E0
Highlighted contacts are those who were interviewed.
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Waterloo Economic Development Study Stakeholder Contacts
Stakeholder Contact Name E-mail Phone Address
POST SECONDARY INSTITUTIONS
Conestoga College John Tibbits President [email protected] 519-748-5220 299 Doon Valley Drive, Kitchener, Ontario
N2G 4M4
Sir Wilfrid Laurier University Max Blouw President [email protected] (519) 884-1970 75 University Avenue West, Waterloo,
Ontario, Canada N2L 3C5
University of Waterloo Martin Van Nierop Director
Communications and
Public Affairs
[email protected] 519 888 4567 200 University Avenue West
Waterloo, Ontario
N2L 3G1, Canada
PROVINCIAL / FEDERAL
Waterloo Region Department of
Foreign Affairs and International
Trade
Robin MacNab- Trade
Commissioner
[email protected] (519) 571-6656 Planning, Housing & Community
Services. 150 Frederick Street, 8th Floor.
Kitchener, ON N2G 4J3
Federal Economic Development
Agency for Southern Ontario
(FedDev Ontario)
Mark Wilson - Assistant
Director, Community
Economic Development
[email protected] 519-571-5644 101 Frederick Street, 4th floor
Kitchener, Ontario
N2H 6R2
Ministry of Economic Development
and Trade - Small and Medium
Amy Britten, Sr. Business
Advisor
[email protected] 519 571-6074 Kitchener, Ontario
OMAFRA Mark Jonker - Team Lead,
Business and Investment
Development Unit
[email protected] 519-826-3482 www.omafra.gov.on.ca
POLITICAL FIGURESRegional Chair Ken Seiling [email protected] 519 575 4585
City of Waterloo Mayor Mayor, Brenda Halloran [email protected] 519-747-8700
Township of Wilmot Mayor Mayor, Les Armstrong [email protected]. 519.634.8444 The Corporation of the Township of
Wilmot
60 Snyder's Road West
Baden, Ontario
N3A 1A1
Highlighted contacts are those who were interviewed.
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Waterloo Economic Development Study Stakeholder Contacts
Stakeholder Contact Name E-mail Phone Address
POLITICAL FIGURES CONT'DCity of Kitchener Mayor Mayor, Carl Zehr [email protected] 519-741-2300 Kitchener City Hall
200 King Street West, 2nd Floor
Kitchener, ON N2G 4G7
Canada
Township of Woolwich Mayor Mayor , Todd Cowan [email protected] 519-669-1647 ext. 6101 Township of Woolwich
24 Church Street West,
P.O. Box 158,
Elmira, ON N3B 2Z6
Township of North Dumfries
Mayor
Mayor , Robert
Deutschmann
(519) 394 2010 1171 Greenfield Road, R.R.#4,
Cambridge, Ontario - N1R 5S5
Township of Wellesley Mayor Mayor, Ross Kelterborn [email protected] 519-699-4611 1st Floor, 150 Frederick Street
Kitchener Ontario N2G 4J3
City of Cambridge Mayor Mayor, Doug Craig [email protected] (519)740-4517 ext 4215 P.O. Box 669
50 Dickson St
Cambridge, Ontario N1R 5W8
OTHER / COMMUNITY FIGURES / REALTOR/ PAST & PRESENT CTTColdwell Banker Peter Benninger
Realty
Peter Benninger - Broker of
Record/Owner, CTT Board
member
[email protected] 519 743 5211 508 Riverbend Drive, Kitchener, ON N2K
3S2
Business Owner / Community
Leader / Previous roles with CTT,
Mary D'Alton - Owner of
Waterloo Inn
[email protected] (519) 884-0220 475 King Street North Waterloo, ON N2J
2Z5
Miller Thomson Lawyers/advocats Jamie Martin LLP - Vice
Chancellor at WLU, former
Chairman of CTT
[email protected] 519 593 3247 Accelerator Building, 295 Hagey Blvd.,
Suite 300, Waterloo, ON N2L 6R5
CTT Chairman Helen Jowett [email protected]
Past Board Chair John Doherty [email protected]
Highlighted contacts are those who were interviewed.
WATERLOO REGION ECONOMIC DEVELOPMENT STUDY
ASSESSMENT OF ECONOMIC DEVELOPMENT SERVICES & THE PROVISION OF EMPLOYMENT LANDS
A-7 MALONE GIVEN PARSONS LTD.
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LEGAL EXTRACTS
B
ONTARIO REGULATION 599/06
MUNICIPAL SERVICES CORPORATIONS
Definitions 1. In this Regulation,
“private person” means a person who is not a municipality, the Province of Ontario, Canada or an agent of any of them;
“public sector entity” means,
(a) a municipality,
(b) the Crown in right of Ontario,
(c) the Crown in right of Canada, or
(d) a combination of them;
“wholly-owned corporation” means,
(a) a corporation all of whose shares are owned by a municipality or by a municipality and one or more other public sector entities, and
(b) a corporation in which a municipality, by itself or together with one or more other public sector entities, has an entitlement to all of the voting rights allocated to the members of the corporation. O. Reg. 599/06, s. 1.
Exercise of s. 203 (1) powers 2. (1) A municipality in exercising the powers referred to in subsection 203 (1) of the Act
in relation to a corporation shall do so in accordance with this Regulation. O. Reg. 599/06, s. 2 (1).
(2) Sections 7, 12, 13, 14 and 15 apply to a municipality in relation to a corporation only if the municipality uses or expects to use a power referred to in section 3 or subsection 4 (2), (3) or 5 (1) in relation to the corporation. O. Reg. 599/06, s. 2 (2).
(3) Sections 17 to 22 apply to a corporation only if a municipality uses or expects to use a power referred to in section 3 or subsection 4 (2), (3) or 5 (1) in relation to the corporation. O. Reg. 599/06, s. 2 (3).
GENERAL POWERS IN RELATION TO CORPORATIONS FOR MUNICIPALITIES
Power to establish corporations 3. A municipality may use the power to referred to in paragraph 1 of subsection 203 (1) of
the Act to establish a corporation only if the municipality by itself, or together with one or more other public sector entities, establishes the corporation and,
(a) the corporation’s purpose is to provide a system, service or thing that the municipality itself could provide; or
(b) the establishment of the corporation is expressly authorized by this Regulation. O. Reg. 599/06, s. 3.
Powers in relation to incorporators, members, directors, officers 4. (1) A municipality may use the powers referred to in paragraph 2 of subsection 203 (1)
of the Act to nominate or authorize a person to act as a director or officer of a corporation in relation to any corporation whether incorporated under this or any other Act. O. Reg. 599/06, s. 4 (1).
(2) A municipality may use the power referred to in paragraph 2 of subsection 203 (1) of the Act to nominate or authorize a person to act as an incorporator of a corporation only if the corporation is one the municipality may establish under this Regulation. O. Reg. 599/06, s. 4 (2).
(3) A municipality may use the power referred to in paragraph 2 of subsection 203 (1) of the Act to nominate or authorize a person to act as a member of a corporation only if the corporation is established by a public sector entity and it carries on business in the municipality or in the municipality and another municipality. O. Reg. 599/06, s. 4 (3).
Powers in relation to securities of corporations 5. (1) Subject to section 14 of this Regulation, a municipality may use the powers
referred to in paragraphs 4 and 5 of subsection 203 (1) of the Act to acquire, hold, dispose of, guarantee and otherwise deal with securities of a corporation only if the corporation is established by a public sector entity and the corporation carries on business in the municipality or in the municipality and another municipality. O. Reg. 599/06, s. 5 (1).
(2) Nothing in this Regulation restricts the powers of a municipality to provide assistance under an exception to subsections 106 (1) and (2) of the Act, make a grant under section 107 of the Act, or make an investment or undertake other financial activities under Part XIII of the Act. O. Reg. 599/06, s. 5 (2).
DUTIES OF MUNICIPALITY
Business case study 6. A municipality shall adopt a business case study before it uses the powers referred to
in section 3, 4 or 5 to,
(a) establish a corporation either alone or with one or more other public sector entities;
(b) purchase securities in a corporation established by one or more public sector entities other than the municipality;
(c) become a member of a corporation established by one or more public sector entities other than the municipality; or
(d) submit, with respect to a corporation for which a study was undertaken under clause (a), (b) or (c), or cause a corporation for which a study was undertaken under clause (a), (b) or (c) to submit, articles of amendment or any other articles or supplementary letters patent. O. Reg. 599/06, s. 6.
Asset transfer policies 7. (1) A municipality shall adopt and maintain policies on asset transfers to corporations.
O. Reg. 599/06, s. 7 (1).
(2) A municipality shall not transfer any of its assets to a corporation before the municipality adopts the policies referred to in subsection (1). O. Reg. 599/06, s. 7 (2).
Public participation 8. Before establishing a corporation under section 3, a municipality shall consult with the
public about the proposal to establish the corporation. O. Reg. 599/06, s. 8.
Economic development corporations 9. (1) If a municipality establishes a corporation for the sole purpose of providing one or
more economic development services, the municipality may also designate the corporation as a designated economic development corporation. O. Reg. 599/06, s. 9 (1).
(2) Despite section 21 of this Regulation, if a municipality designates a corporation under subsection (1), the corporation is a local board of the municipality for the purposes of section 326 of the Act. O. Reg. 599/06, s. 9 (2).
(3) Economic development services provided by and for the purposes of a corporation designated by a municipality under subsection (1) are prescribed as special services for the purposes of clause 326 (1) (a) of the Act. O. Reg. 599/06, s. 9 (3).
(4) In this section,
“economic development services” means,
(a) the promotion of the municipality for any purpose, including by the collection and dissemination of information and the development of economic development strategic plans,
(b) the acquisition, development and disposal of sites in the municipality for residential, industrial, commercial and institutional uses,
(c) provision of public transportation systems,
(d) provision of residential housing,
(e) provision of general parking facilities,
(f) providing a counselling service to or encouraging the establishment and initial growth of small businesses operating or proposing to operate in the municipality,
(g) undertaking community improvement consistent with a community improvement plan approved by the municipality under subsection 28 (4) of the Planning Act,
(h) improvement, beautification and maintenance of municipally-owned land, buildings and structures in an area designated by the municipality beyond the standard provided at the expense of the municipality generally, and promotion of any area of the municipality as a business or shopping area,
(i) provision of facilities for amusement or for conventions and visitors’ bureaus,
(j) provision of culture and heritage systems. O. Reg. 599/06, s. 9 (4).
Holding corporations 10. (1) A municipality may use the powers referred to in paragraphs 1 to 5 of subsection
203 (1) of the Act in relation to a corporation incorporated for the purpose of holding shares in one or more other corporations only if,
(a) the corporation is established by the municipality or the municipality and one or more other municipalities;
(b) the articles of incorporation of the corporation restrict the ownership of any and all voting and non-voting shares in the corporation to the municipality or to the municipality and one or more other municipalities; and
(c) the articles of incorporation of the corporation restrict the powers of the corporation to those necessary to acquire, hold, dispose of and otherwise deal with,
(i) shares of one or more corporations established under any Act by the municipality,
(ii) shares of one or more corporations established under any Act by another municipality that the municipality has agreed to allow to carry on business in the municipality, or
(iii) any combination of shares described in subclauses (i) and (ii). O. Reg. 599/06, s. 10 (1).
(2) In subclauses (1) (c) (i) and (ii),
“corporation” means a corporation other than a corporation established by a municipality for the purpose of holding shares in one or more other corporations. O. Reg. 599/06, s. 10 (2).
Special corporation, Windsor-Detroit Tunnel 10.1 (1) The City of Windsor may, by itself or together with one or more other public
sector entities, use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that satisfies the following conditions:
1. It carries on business,
i. in the City of Detroit and elsewhere in the State of Michigan, or
ii. in the City of Detroit, elsewhere in the State of Michigan and in the City of Windsor.
2. Its purposes are restricted to,
i. managing, operating and maintaining all or part of the Tunnel,
ii. holding shares in one or more corporations established for the purpose of managing, operating and maintaining all or part of the Tunnel, or
iii. a combination of the purposes listed in subparagraphs i and ii. O. Reg. 371/07, s. 1.
(2) Sections 10 and 16 do not apply to a corporation established under subsection (1). O. Reg. 371/07, s. 1.
(3) Without limiting the generality of subsection (1), the power to establish a corporation under that subsection includes power to incorporate a corporation under the laws of the State of Michigan. O. Reg. 371/07, s. 1.
(4) Nothing in subsection (1) prevents the City of Windsor from using the powers referred to in subsection 203 (1) of the Act in relation to a corporation that carries on business in relation to the Tunnel only in the City of Windsor. O. Reg. 371/07, s. 1.
(5) In this section,
“City of Detroit” means the City of Detroit in the State of Michigan;
“State of Michigan” means the State of Michigan in the United States of America;
“Tunnel” means the motor vehicle tunnel that connects the City of Windsor with the City of Detroit, and includes any ancillary facilities for the transfer of passengers between municipal transportation systems of the City of Windsor and the City of Detroit. O. Reg. 371/07, s. 1.
RULES FOR MUNICIPALITY
Prohibited use of powers in relation to corporations 11. (1) Despite section 3, subsections 4 (2), (3) and 5 (1) of this Regulation, a
municipality shall not use any of the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation if the business or activities of the corporation include
doing anything that the municipality or any of its local boards may do or are required to do under any of the following Acts:
1. Ambulance Act.
2. Child and Family Services Act.
3. Fire Protection and Prevention Act, 1997.
4. Health Protection and Promotion Act.
5. Long-Term Care Homes Act, 2007 in respect of long-term care homes under Part VIII of that Act.
6. Police Services Act.
7. Provincial Offences Act.
8. Public Libraries Act.
9. Ontario Works Act, 1997. O. Reg. 599/06, s. 11 (1); O. Reg. 87/10, s. 1 (1).
(2) Despite subsection (1), a municipality may use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that carries on business or activities in connection with a municipality, local board, public hospital, university, college or school board operating under any of the Acts listed in that subsection, but only if the business or activities of the corporation in connection with those entities are restricted to the provision of administrative services to them. O. Reg. 599/06, s. 11 (2).
(3) Despite section 3 and subsections 4 (2), (3) and 5 (1) of this Regulation, a municipality shall only use the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to a corporation that carries on any business or activities in connection with a long-term care home under the Long-Term Care Homes Act, 2007 other than a long-term care home under Part VIII of that Act if the business or activities of the corporation are restricted to the construction, operation, maintenance and ownership, including ownership of land, of facilities that are new when the corporation first carries on its business with respect to them. O. Reg. 87/10, s. 1 (2).
(4) Despite section 3 and subsections 4 (2), (3) and 5 (1) of this Regulation, a municipality shall not use any of the powers referred to in paragraphs 1 to 5 of subsection 203 (1) of the Act in relation to corporation if the business or activities of the corporation include requiring a person to pay an administrative penalty in respect of the person’s failure to comply with any by-law of the municipality or any other municipality respecting the parking, standing or stopping of vehicles. O. Reg. 599/06, s. 11 (4).
Conditions for incorporation 12. (1) If a municipality proposes to transfer an asset to a corporation and the Province
of Ontario has contributed funds for the purchase or improvement of the asset, the municipality shall give notice of the proposal to every Minister that made all or part of the contribution on behalf of the Province. O. Reg. 599/06, s. 12 (1).
(2) A Minister who receives a notice under subsection (1) may accept the valuation of the treasurer of the municipality or may otherwise determine the value of the contribution and shall notify the municipality in writing within six months of the receipt of the notice as to the requirement for repayment or to indicate the release of the Province’s interest in the asset being transferred or the proceeds of the transfer. O. Reg. 599/06, s. 12 (2).
(3) A municipality may transfer an asset to which the notice requirement in subsection (1) applies if one of the following conditions is met:
1. Six months have passed since the municipality gave any notices required by this section and no response has been received from the Province within that period.
2. The Province has notified the municipality of its acceptance of the valuation by the treasurer and of any requirement for repayment.
3. The Province has notified the municipality of its rejection of the valuation by the treasurer, of its own valuation and of any requirement for repayment.
4. The Province has notified the municipality that it releases its interest in the asset being transferred or in the proceeds of the transfer. O. Reg. 599/06, s. 12 (3).
No assignment 13. A municipality shall not assign or transfer any right granted to it in any agreement
between the municipality and the Province of Ontario to a corporation without first obtaining the consent of the Minister responsible for the agreement. O. Reg. 599/06, s. 13.
Debt instruments 14. (1) A municipality may use the powers referred to in paragraphs 4 and 5 of
subsection 203 (1) of the Act to acquire, hold, dispose of, guarantee and otherwise deal with bonds, debentures, promissory notes, mortgages and similar evidences of indebtedness of a corporation that may issue shares only if the debt would be incurred by reason of the transfer of a municipal property asset to the corporation. O. Reg. 599/06, s. 14 (1).
(2) In this section,
“municipal property asset” means an asset of the municipality that is land, equipment or other goods. O. Reg. 599/06, s. 14 (2).
Assistance to corporation 15. (1) Despite section 106 of the Act, a municipality may provide assistance to a
corporation,
(a) if the corporation is a wholly-owned corporation and is limited by its articles or letters patent to providing services to the owners or members of the corporation; or
(b) if the purpose of the assistance is to subsidize the cost of public transportation facilities or services or public access to recreational and cultural facilities. O. Reg. 599/06, s. 15 (1).
(2) The types of assistance that may be provided under subsection (1) are,
(a) giving, lending or selling any property of a municipality, including money;
(b) guaranteeing borrowing;
(c) providing the services of employees of or persons under contract with a municipality. O. Reg. 599/06, s. 15 (2).
(3) The assistance provided under clause (2) (a), (b) or (c) need not be at fair market value. O. Reg. 599/06, s. 15 (3).
(4) The treasurer shall prepare a statement of the value of any grant to a corporation or an estimate of the fair market value of any other assistance provided at less than fair market value to a corporation under this section. O. Reg. 599/06, s. 15 (4).
RULES FOR CORPORATIONS
Territorial operation of corporation 16. (1) A corporation may only operate within the boundaries of a municipality with the
agreement of the municipality. O. Reg. 599/06, s. 16 (1).
(2) Despite subsection (1), a corporation may operate within the boundaries of an upper-tier municipality without the agreement of any lower-tier municipality that forms part of that upper-tier municipality for municipal purposes if the corporation’s purpose is to provide a system, service or thing that the upper-tier municipality itself could provide. O. Reg. 599/06, s. 16 (2).
(3) Despite subsection (1), a corporation may operate within the boundaries of a lower-tier municipality that forms part of an upper-tier municipality for municipal purposes without the agreement of the upper-tier municipality if the corporation’s purpose is to provide a system, service or thing that the lower-tier municipality itself could provide. O. Reg. 599/06, s. 16 (3).
(4) This section applies to any corporation established by,
(a) a municipality using the power referred to in paragraph 1 of subsection 203 (1) of the Act;
(b) the City of Toronto using the power referred to in paragraph 1 of subsection 148 (1) of the City of Toronto Act, 2006;
(c) the Province of Ontario together with one or more municipalities referred to in clause (a) or (b);
(d) the Crown in right of Canada together with one or more municipalities referred to in clause (a) or (b); or
(e) any combination of clauses (a), (b), (c) and (d). O. Reg. 599/06, s. 16 (4).
Amendments to corporate documents 17. (1) A corporation shall not make an amendment to its articles of incorporation or
letters patent or to any subsequent articles or supplementary letters patent if the amendment would permit the corporation,
(a) to carry on a purpose other than a purpose that would be permitted by section 3;
(b) to carry on any business or activities that would include doing anything that the municipality or any of its local boards could do or be required to under any of the Acts mentioned in subsection 11 (1), except the business or activity of providing administrative services permitted by subsection 11 (2); or
(c) to carry on any business or activities that would include doing anything inconsistent with subsection 11 (3) or (4). O. Reg. 599/06, s. 17 (1).
(2) A corporation shall not submit articles of amendment or any other articles or supplementary letters patent under any Act unless the municipality has first adopted a business case study in relation to the proposed amendment, articles or supplementary letters patent. O. Reg. 599/06, s. 17 (2).
Limitations on actions of corporation 18. (1) A corporation shall not act as an incorporator of another corporate body that is
incorporated under any Act. O. Reg. 599/06, s. 18 (1).
(2) A corporation may only invest in securities prescribed under section 418 of the Act and, for the purpose of this subsection, any regulation made under that section of the Act applies to the corporation as if it were a municipality. O. Reg. 599/06, s. 18 (2).
(3) Despite subsection (2), to expand or otherwise carry on its purposes, a corporation may acquire all of the voting and non-voting shares of,
(a) another corporation established by one or more municipalities;
(b) a body corporate incorporated under any Act if the articles of incorporation of the body corporate restrict the powers or limit the objects of the body corporate to carrying on one or more of the purposes set out in clause 3 (a). O. Reg. 599/06, s. 18 (3); O. Reg. 371/07, s. 2 (1).
(4) A body corporate, the shares of which have been acquired under subsection (3), must be dissolved and its remaining assets and liabilities transferred to the acquiring corporation within one year of the date of the acquisition of the shares. O. Reg. 599/06, s. 18 (4).
(4.1) Subsections (3) and (4) do not apply to a corporation established under section 10 or 10.1. O. Reg. 371/07, s. 2 (2).
(5) If any purpose or business of a corporation includes the provision of a public utility for water or sewage,
(a) the corporation shall not issue shares or give voting rights attached to the shares to a private person if it is a share corporation or, if it is a non-share corporation, it shall allocate voting rights to a member of the corporation only if the member is not a private person; and
(b) the corporation shall not transfer to a private person any asset that is part or all of a municipal drinking water system or of a sewage works unless the board of directors of the corporation has declared, by resolution, that the asset is no longer needed for the purposes of the system. O. Reg. 599/06, s. 18 (5).
(6) If any purpose or business of a corporation includes a program for the supervision, encouragement and guidance of recreational activity for persons under the age of 18, the corporation shall not issue shares or give voting rights attached to the shares to a private person if it is a share corporation or, if it is a non-share corporation, it shall allocate voting rights to a member of the corporation only if the member is not a private person. O. Reg. 599/06, s. 18 (6).
(7) In this section,
“municipal drinking water system” has the same meaning as in the Safe Drinking Water Act, 2002;
“sewage works” has the same meaning as in the Ontario Water Resources Act. O. Reg. 599/06, s. 18 (7).
Deemed members 19. The directors and officers of a corporation shall be deemed to be members for the
purposes of the Municipal Conflict of Interest Act. O. Reg. 599/06, s. 19.
Deemed institutions 20. A corporation that is a wholly-owned corporation or a corporation whose business or
activities include the provision of administrative services to any municipality, local board, public hospital, university, college or school board is deemed to be an institution for the purposes of the Municipal Freedom of Information and Protection of Privacy Act. O. Reg. 599/06, s. 20.
Status of corporation 21. (1) A corporation is not a local board for the purposes of any Act. O. Reg. 599/06,
s. 21 (1).
(2) Despite subsection (1), a corporation shall be deemed to be a local board for purposes of subsection 270 (2) of the Act, and for the purposes of the Environmental Assessment Act, the Municipal Conflict of Interest Act, the Emergency Management and Civil Protection Act, and subsection 56.2 (3) of the Capital Investment Plan Act, 1993. O. Reg. 599/06, s. 21 (2).
(3) Despite subsection (1), if a corporation is wholly-owned, it shall be deemed to be a local board for the purposes of the Development Charges Act, 1997. O. Reg. 599/06, s. 21 (3).
Result of non-compliance 22. Any of the following matters may be considered sufficient cause under any Act to
cancel the certificate of incorporation of a corporation or the letters patent or supplementary letters patent of a corporation:
1. The corporation does not meet the requirements of this Regulation.
2. A certificate is issued under the Business Corporations Act or any other Act under which a municipality establishes a corporation that is inconsistent with this Regulation.
3. Letters patent or supplementary letters patent are granted under any Act that are inconsistent with this Regulation.
4. The corporation acts outside the purposes to which it is restricted by its articles or letters patent.
5. The fact that the municipality did not comply with the requirements of section 12 in relation to the incorporation. O. Reg. 599/06, s. 22.
23. Omitted (revokes other Regulations). O. Reg. 599/06, s. 23.
24. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 599/06, s. 24.
Municipal Act, 2001, as amended
11. (1) A lower-tier municipality and an upper-tier municipality may provide any service or thing that the municipality considers necessary or desirable for the public, subject to the rules set out in subsection (4). 2006, c. 32, Sched. A, s. 8.
By-laws (2) A lower-tier municipality and an upper-tier municipality may pass by-laws, subject to
the rules set out in subsection (4), respecting the following matters:
1. Governance structure of the municipality and its local boards.
2. Accountability and transparency of the municipality and its operations and of its local boards and their operations.
3. Financial management of the municipality and its local boards.
4. Public assets of the municipality acquired for the purpose of exercising its authority under this or any other Act.
5. Economic, social and environmental well-being of the municipality.
6. Health, safety and well-being of persons.
7. Services and things that the municipality is authorized to provide under subsection (1).
8. Protection of persons and property, including consumer protection. 2006, c. 32, Sched. A, s. 8.
By-laws re: matters within spheres of jurisdiction (3) A lower-tier municipality and an upper-tier municipality may pass by-laws, subject to
the rules set out in subsection (4), respecting matters within the following spheres of jurisdiction:
1. Highways, including parking and traffic on highways.
2. Transportation systems, other than highways.
3. Waste management.
4. Public utilities.
5. Culture, parks, recreation and heritage.
6. Drainage and flood control, except storm sewers.
7. Structures, including fences and signs.
8. Parking, except on highways.
9. Animals.
10. Economic development services.
11. Business licensing. 2006, c. 32, Sched. A, s. 8.
Rules (4) The following are the rules referred to in subsections (1), (2) and (3):
1. If a sphere or part of a sphere of jurisdiction is not assigned to an upper-tier municipality by the Table to this section, the upper-tier municipality does not have the power to pass by-laws under that sphere or part and does not have the power to pass by-laws under subsection (1) or (2) that, but for this paragraph, could also be passed under that sphere or part.
2. If a sphere or part of a sphere of jurisdiction is assigned to an upper-tier municipality exclusively by the Table to this section, its lower-tier municipalities do not have the
power to pass by-laws under that sphere or part and do not have the power to pass by-laws under subsection (1) or (2) that, but for this paragraph, could also be passed under that sphere or part.
3. If a sphere or part of a sphere of jurisdiction is assigned to an upper-tier municipality non-exclusively by the Table to this section, both the upper-tier municipality and its lower-tier municipalities have the power to pass by-laws under that sphere or part.
4. If a lower-tier municipality has the power under a specific provision of this Act, other than this section, or any other Act to pass a by-law, its upper-tier municipality does not have the power to pass the by-law under this section.
5. If an upper-tier municipality has the power under a specific provision of this Act, other than this section, or any other Act to pass a by-law, a lower-tier municipality of the upper-tier municipality does not have the power to pass the by-law under this section.
6. Paragraphs 4 and 5 apply to limit the powers of a municipality despite the inclusion of the words “without limiting sections 9, 10 and 11” or any similar form of words in the specific provision.
7. The power of a municipality with respect to the following matters is not affected by paragraph 4 or 5, as the case may be:
i. prohibiting or regulating the placement or erection of any sign, notice or advertising device within 400 metres of any limit of an upper-tier highway,
ii. any other matter prescribed by the Minister. 2006, c. 32, Sched. A, s. 8.
One power not affecting another (5) The power to pass a by-law respecting a matter set out in a paragraph of subsection
(2) or (3) is not limited or restricted by the power to pass a by-law respecting a matter set out in another paragraph of subsection (2) or (3). 2006, c. 32, Sched. A, s. 8.
Services or things provided by others (6) The power of a municipality to pass a by-law respecting the matter set out in
paragraph 7 of subsection (2) does not include the power to pass a by-law respecting services or things provided by a person other than the municipality or a municipal service board of the municipality. 2006, c. 32, Sched. A, s. 8.
Services or things provided by other tier (7) The power of a municipality to pass a by-law under subsection (3) under each sphere
of jurisdiction does not, except as otherwise provided, include the power to pass a by-law respecting services or things provided by its upper-tier or lower-tier municipality, as the case may be, of the type authorized by that sphere. 2006, c. 32, Sched. A, s. 8.
Services or things provided by others (8) The power of a municipality to pass a by-law under subsection (3) under the following
spheres of jurisdiction does not, except as otherwise provided, include the power to pass a by-law respecting services or things provided by any person, other than the municipality or a municipal service board of the municipality, of the type authorized by that sphere:
1. Public utilities.
2. Waste management.
3. Highways, including parking and traffic on highways.
4. Transportation systems, other than highways.
5. Culture, parks, recreation and heritage.
6. Parking, except on highways. 2006, c. 32, Sched. A, s. 8.
Exception (9) Nothing in subsection (6), (7) or (8) prevents a municipality passing a by-law with
respect to services or things provided by any person to the extent necessary,
(a) to ensure the physical operation of a system of the municipality or of a municipal service board of the municipality is not impaired; or
(b) to ensure the municipality, a municipal service board of the municipality or a system of the municipality or municipal service board meet any provincial standards or regulations that apply to them. 2006, c. 32, Sched. A, s. 8.
“economic development services” means, in respect of a municipality, the promotion of the municipality by the municipality for any purpose by the collection and dissemination of information and the acquisition, development and disposal of sites by the municipality for industrial, commercial and institutional uses
Definition (10) In this section,
“local board” means a local board as defined in section 10. 2006, c. 32, Sched. A, s. 8.
Regulations (11) The Minister may make regulations prescribing matters for the purpose of
subparagraph 7 ii of subsection (4). 2006, c. 32, Sched. A, s. 8.
TABLE Sphere of Jurisdiction Part of Sphere Assigned Upper-tier Municipality (ies)
to which Part of Sphere assigned
Exclusive or Non-Exclusive Assignment
1. Highways, including parking and traffic on highways
Whole sphere All upper-tier municipalities Non-exclusive
2. Transportation systems, other than highways
Airports All upper-tier municipalities Non-exclusive
Ferries All upper-tier municipalities Non-exclusive
Disabled passenger transportation systems
Peel, Halton Non-exclusive
Whole sphere, except airports and ferries
Waterloo, York Exclusive
3. Waste management Whole sphere, except waste collection
Durham, Halton, Lambton, Oxford, Peel, Waterloo, York
Exclusive
4. Public utilities Sewage treatment All counties, Niagara, Waterloo, York
Non-exclusive
Durham, Halton, Muskoka, Oxford, Peel
Exclusive
Collection of sanitary sewage All counties, Niagara, Waterloo, York
Non-exclusive
Durham, Halton, Muskoka, Oxford, Peel
Exclusive
Collection of storm water and other drainage from land
All upper-tier municipalities Non-exclusive
Water production, treatment and storage
All upper-tier municipalities except counties
Exclusive
Water distribution Niagara, Waterloo, York Non-exclusive
Oxford, Durham, Halton, Muskoka, Peel
Exclusive
5. Culture, parks, recreation and heritage
Whole sphere All upper-tier municipalities Non-exclusive
6. Drainage and flood control, except storm sewers
Whole sphere All upper-tier municipalities Non-exclusive
7. Structures, including fences and signs
Whole sphere, except fences and signs
Oxford Non-exclusive
8. Parking, except on highways Municipal parking lots and structures
All upper-tier municipalities Non-exclusive
9. Animals None None 10. Economic development
services Promotion of the municipality for any purpose by the collection and dissemination of information
Durham Exclusive All counties, Halton, Muskoka, Niagara, Oxford, Peel, Waterloo, York
Non-exclusive
Acquisition, development and disposal of sites for industrial, commercial and institutional uses
Durham Exclusive Halton, Lambton, Oxford Non-exclusive
11. Business licensing Owners and drivers of taxicabs, tow trucks, buses and vehicles (other than motor vehicles) used for hire Taxicab brokers Salvage business Second-hand goods business
Niagara, Waterloo Exclusive
Drainage business, plumbing business
York Exclusive
Lodging houses, septic tank business
York Non-exclusive
COMPARATIVE ANALYSIS
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Table C.1 Shifting Focus of Economic Development Practices
ATTRIBUTES OLD ECONOMY (Industrial) NEW ECONOMY (post industrial )
Economy Wide
Organizational Form Vertical Integration Horizontal Networks
Scope of Competition National Global
Markets Stable Volatile
Sub-Region Competition Medium High
Geographic Mobility of Business Low High
Role of Government Provider/Targeting Steering/Enabling
Labour and Workforce Wide
Labour –management Relations Adversarial Collaboration
Skills Job Based /Static Knowledge based /Transferable/
Education Task Specific Continuously renewed/
Transportable
Policy Focus Jobs Creation/ Assessment
Growth
Higher Wages and Incomes
/Productivity Improvement
Production Wide
Resource Orientation Material Resources Information and Knowledge
Relations with other firms Independent Ventures Alliances and Collaborations
Sources of Competitive Advantage Agglomeration Economics Innovation, quality, time to market
and cost
Primary Driver of Productivity Mechanization/ Digital
Growth Drivers Capital/ Labour /Land Innovation Invention and
Knowledge
Role of Research and Innovation Low High
Production Methods Mass Production Flexible Production
Role of Government Protectionist and Subsidy
Provider
Infrastructure provider and
Privatization enabler
Infrastructure
Form Hard Soft (Organizational networking
and information)
Transport Highways Digital Highway( Information
Technology)
Power Local /Self Generation Sustainable Smart Power Grid and
Co-Generation
Form of Organization Regulated De-regulated
Communications Copper Wire Fibre/Wireless/Cloud
Learning Classroom/lectures Distance/self defined
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EMPLOYMENT LAND USE
MAPS
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Figure D.1 City of Cambridge Employment Land Uses
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Figure D.2 City of Kitchener Employment Land Uses
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Figure D.3 City of Waterloo Employment Land Uses
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Figure D.4 Township of North Dumfries Employment Land Uses
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Figure D.5 Township of Woolwich Employment Land Uses
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Figure D.6 Township of Wilmot Employment Land Uses
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Figure D.7 Township of Wellesley Employment Land Uses
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WATERLOO REGION
ECONOMIC DEVELOPMENT
EXPENDITURES
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Table E.1 Regional Economic Development Human & Financial Capital 2012
Economic
Development Budget
2012
Staff CTT Communitech
Waterloo
Tourism
Marketing
Corp. (WRTM
Corp.)
City of Waterloo
$828,8009
(includes $153K to
CEI) 4 $149,000 $35,000 $90,000
City of Kitchener $4,315,000
(includes $50K to CEI)
26
(6 – 8P/T) $155,000 $30,000 $90,000
City of Cambridge
$1,255,000 6 $147,000 $5,000 $87,400
Township of
Woolwich
$132,270 1 $10,000 - $10,000
Township of
Wellesley
$12,500 0.5 $5,000 - $5,000
Township of Wilmot
$27,500 1 $10,000 - $10,000
Township of North
Dumfries $7,500 0.5 $5,000 - $5,000
Region of Waterloo $868,000
(includes $100K to
CEI)
14 indirect
(10 at CTT & 4
at WRTM
Corp.) $468,000 - $300,000
Total
$7,446,300
51 F/T & P/T
(including 14
indirect staff) $941,000 - $597,400
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BIBLIOGRAPHY
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Section 2
Beltrame, J. (2012, October 5). Markets, economists enthused as Canada
and U.S. report strong job gains. The Record. Retrieved from
www.therecord.com/
Bruns, A. (2012, September). Innovation to Spare, Can a nation be stable
and dynamic at the same time? The answer from Canada is a distinct
“Yes.”. Site Selection. Retrieved from http://www.siteselection.com/
Canada’s Technology Triangle. Waterloo Region Business Advantages.
Retrieved 2012, September 25th
from
www.conferenceboard.ca/press/newsrelease/
Canada’s Technology Triangle. Waterloo Region Business & Financial.
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http://www.techtriangle.com/include/get.php?nodeid=2444
Central 1 Credit Union. (2012, October) Economic Analysis of Ontario.
Vol. 3. Issue 6. Retrieved 2012, November 5th
from
http://www.central1.com/publications/economics/pdf/ea/ea%202012_ont06
Herhal, C. (2012, June 28). Waterloo Region will lead the country in
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www.therecord.com/
Region of Waterloo. (2009). Region of Waterloo 2009 Industrial and
Business Park Vacant Land Inventory.
Simone, R. (2012, January 19). Waterloo Region has Canada’s third
strongest economy, survey shows. The Record. Retrieved from
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WATERLOO REGION ECONOMIC DEVELOPMENT STUDY
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Tal, B. (2012, January 19). Canadian Cities: An Economic Snapshot
Toronto Continues To Lead the Pack. Metro Monitor, CIBC World
Markets Inc. Retrieved from
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f
The Conference Board of Canada. New Release Canada Falls to 14th
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Workforce Planning Board of Waterloo Wellington Dufferin. (2012). Local
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Section 4
City of Toronto. (2009, August 6). Sharehold Direction Build Toronto Inc.
Retrieved from http://www.buildtoronto.ca/documents/shareholder-direction.pdf
Economic Developers Association of Canada. (2011, September).
Performance Measurement in Economic Development, Development of
Performance Measurement Systems for Local and Regional Economic
Development Organizations. Retrieved from
http://www.edac.ca/home?p=1-1-1
Nelles. J. (2005, June). CIVIC CAPITAL IN THE WATERLOO
REGION:Enabling Regional Economic Governance. University of Toronto
Working Paper. Retrieved from
http://www.utoronto.ca/progris/pdf_files/Civic%20Capital%20Waterloo.pd
f
Northeast Indiana Foundation. (2009, August). Best Practices in Regional
and Local Economic Development. Retrieved from
http://ded.mo.gov/Content/Tiamerica,%20Best%20ED%20Practices,%209-
25-09.pdf
Region of Waterloo. (2011). 2011-2014 Strategic Plan. Retrieved from
http://www.regionofwaterloo.ca/en/regionalgovernment/20112014strategic
plan.asp
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Stimson, R., Roberts. B, Stough, R. (2007) Regional Economic
Development: Analysis and Planning Strategy. New York: Springer Berlin
Heidelberg.
Tampa Bay Partnership Center for Business Intelligence. (2012). Regional
Economic Scorecard. Retrieved from
http://partnership.tampabay.org/subpage.asp?navid=7&id=124
Toronto District School Board and Toronto Lands Corporation. (2008, May 18)
Shareholder’s Direction. Retrieved from
http://www.torontolandscorp.com/index.php?option=com_content&view=article
&id=5&Itemid=5
Value of Jobs. (2012).2012 JOBS Action Plan and Progress Report.
Retrieved from http://www.valueofjobs.com/action_plan/index.html
Zizys. T. (2012, April). Rowing Together: Best Practices for the Regional
Coordination of Economic Development in the Toronto Region.
Intergovernmental Committee for Economic and Labour Force
Development. Retrieved from
http://www.icecommittee.org/reports/research-series-coordination-of-
economic-development/
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EXISTING LOCAL ECONOMIC
DEVELOPMENT SERVICES
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Local Economic Development Services in the Waterloo Region
April 2013
Local Economic Development Strategy and Planning
Local Communications, Marketing & Brand Development
Strategic Partnerships – private sector, institutional or other levels of government
Government Relations and Advocacy
Community Economic Development Stakeholder Engagement
Local Representation in Regional Partnerships – CTT, Communitech, MIN, KW & Cambridge Chambers of Commerce
Local Contributions to Provincial/National/International business development coordinated by CTT
Local Economic Development Funds – implementation and administration
Local Business Development & Liaison – inquiry response and support
Business Retention & Expansion
Downtown Investment and Vitality
Arts and Culture Strategy – program administration, investment and cluster facilitation
Special Event Development and Facilitation
Local Farmers Market - management and marketing
Cluster or Industry Development Facilitation
Tourism – visitor information services and event coordination
Local Municipal Employment Lands – development and marketing
Small Business Centre – regional governance & partnership contributions
Film Industry Liaison and Location Assistance
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