Agenda Item # Page # Economic Development and Regional Economic Development December 2009

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1 London CANADA Economic Development and Regional Economic Development December 2009 London s Economic Strategy On September 10, 180 participants gathered for an Economic Summit to consider and provide input into key recommendations on London s economy from the commissioned Prosperity Report. As a result of the Summit, the Board of the London Economic Development Corporation (LEDC) developed a set of priority short-term and long-term initiatives that were presented to London Council. Council unanimously endorsed the action plan including the creation of a $55 million economic development fund from the capital savings of stimulus funding. Other recommendations include the pursuit of the London International Airport s cargo project worth $11 million, the undertaking of a competitive cost study, and the implementation of the Downtown Core Strategic plan. The full list of initiatives is attached. Council endorsed the priority of initiatives and requested that the LEDC assist Council in determining the next steps. See attached resolution of October On November 23, London City Council directed Civic Administration to develop a Joint Venture Agreement with The University of Western Ontario and Trojan Technologies for the development of a Wastewater Technology Centre and to support a multi-party application to Fed Dev Ontario s Southern Ontario Development Program (SODP) to secure funding for Phase 1 of the project. At the same meeting, Council resolved directed Civic Administration to develop a Joint Venture Agreement with The University of Western Ontario and Fanshawe College on the development of Phase IV of Innovation Park as an Advanced Manufacturing Industrial Park. See the attached resolutions. FedDev Ontario London and surrounding Southwest Ontario have experienced high unemployment during the economic recession largely due to plant closings and shrinkages. The Southwest Economic Alliance (SWEA), led by Chair Dan Mathieson, Mayor of Stratford has lobbied both the Federal and Provincial governments with respect to budgetary issues on behalf of Southwest Ontario region and had called for the creation of an economic development agency. The January 2009 Federal budget announced the creation of an economic development agency for Southern Ontario with a budget of $1 billion. FedDev Ontario was created in August 2009 under Federal Minister Gary Goodyear as a tool to promote economic development, diversification and innovation. Its headquarters are in Kitchener with branch offices in Ottawa, Toronto, Peterborough, and Stratford. The geographic scope of FedDev Ontario includes Southwest Ontario and the Greater Toronto Area. In the first year of business, it is using existing programs and partnerships initially to expedite the provision of funds. In early October Minister Goodyear was in London to announce that funding applications were being accepted for the SODP. The funding is directed to projects that will stimulate local economies and enhance the growth and competitiveness of Southern Ontario businesses and communities. Total funding for the SODP for projects that must be completed by the end of March 2010, is approximately $100 million of which $40 million will be available for the first intake process. Southwest Economic Alliance (SWEA) The Municipality of Chatham-Kent hosted SWEAs fourth Annual Conference and Annual General Meeting (AGM) in September Dr. Bruce Archibald, President of FedDev Ontario addressed the gathering. The City of London and the London Economic Development Corporation (LEDC) have been strong supporters of SWEA since its inception in In addition to the Annual conference, SWEA has held a sector consultation and a workshop that resulted in a detailed proposal to the federal government on the nature and priorities of

2 the economic development agency. The Alliance supported the London International Airport's cargo initiative. Since September 2008, SWEA has made the transition from an interim board to a full slate of directors. Serge Lavoie who was appointed President in August 2009 presented his vision for SWEAs operating plan at the September Annual Conference and AGM. The two year operating plan, which was endorsed by the SWEA membership, will build SWEAs organizational profile, define member categories and fees, and intensify SWEAs communication strategy. The Board is developing a five year strategic plan which will prioritize key objectives. High Speed Rail London Municipal Council has taken a keen interest in the updating of the Ontario-Quebec feasibility studies of a High Speed Rail service as an economic development tool along the Quebec City-Windsor corridor. Consequently, it has endorsed the concept of a High Speed Rail service and the updating of the feasibility studies and has called for a stop in London. The City of London and LEDC sponsored a symposium in May with High Speed Rail Canada. Also in May, the City made a witness statement to the House of Commons Standing Committee on Transport, Infrastructure and Communities. Municipal Council has requested that Civic Administration report back with respect to how the City should adapt its long-term transportation, transit and land-use planning to take the best possible advantage of the High-speed rail link; infrastructure requirements, and an outline of the Urban Structural Plan which would show the other levels of government how the High- Speed Rail, Bus Rapid Transit and Light Rail Transit would be integrated. The terms of reference for the imminent start to the London 2030 Transportation Master Plan include a requirement to assess how High-speed Rail might be coordinated with the broader road and transit networks in London. The City of London, along with several other municipalities in Quebec and Ontario, is participating in a socio-economic study conducted by SNCF International on High-speed Rail implementation along the Quebec City-Windsor corridor. Deliverables due in early include collection of data on current transport demand, estimated traffic forecasts and revenues, the operating and maintenance costs, and the required investment in infrastructure and transport equipment. Traffic forecasts will include modelling existing and projected evolutionldiversion of traffic from other modes of travel. Data on economic development patterns of the Ontario, Quebec, and North-eastern US study area will be collected and modelled to estimate the socio-economic, environmental, and financial impacts for the study area and in particular for the participating municipalities. Collection and modelling of this socio-economic data will arm the City of London with local business case data and modelling that is not expected to be produced by the Ontario-Quebec study. St. Thomas Assembly Plant Verbal update. Budget Pre-Budget Submission Attachments: Council resolution October 26, London Economic Strategic Initiatives Council resolution, November 23, Joint Venture Agreement with The University of Western Ontario and Trojan Technologies for the development of a Wastewater Technology Centre Council resolution, November 23, Joint Venture Agreement with The University of Western Ontario and Fanshawe College for the development of Phase IV of Innovation Park LEDC report to Board of Control, October 7, 2009 Excerpt from LEDC slide presentation to Board of Control, October 7, 2009

3 October 27,2009 J. A. Fielding Chief Administrative Officer Suite 1105 P. White, President & CEO London Economic Development Corporation I hereby certify that the Municipal Council, at its session held on October 26, 2009, resolved: 1. That the following actions be taken with respect to the attached presentation by C. Hounsell, Chair, London Economic Development Corporation (LEDC) Board and P. White, Chief Executive Officer, LEDC, pertaining to London Strategic Economic Initiatives: (a) (b) the priority of initiatives BE ENDORSED; the Civic Administration and the LEDC BE REQUESTED to complete the necessary reports to assist the Municipal Council in determining and implementing the appropriate next steps, with consideration being given to, among other matters: (i) (ii) (iii) (iv) (v) the impending Downtown Master Plan and the work of the Downtown Task Force; the concept of a broader Southwestern Ontario Transportation Master Plan ; the development of a structural plan and other transportation components, such as transit and high speed rail; relevant business plans and engineering studies; and industrial land supply and demand. (1/27/CW) L. M. Rowe Acting City Clerk /crg C. V. A. Cote R. W. Panzer P. McNally R. L. Fair G. T. Hopcroft D. A. Leckie R. Sanderson Committee of the Whole The Corporation of the City of London Office: ext Fax: webmaster@london.ca w.london.ca

4 London CANADA November 24,2009 J. A. Fielding Chief Administrative Officer Suite 1105 u V. A. Cot6 General Manager of Finance and Corporate Services and Acting City Treasurer P. McNally General Manager of Environmental and Engineering Services & City Engineer Room 1006 I hereby certiq that the Municipal Council, at its session held on November 23, 2009, resolved: 27. That, on the recommendation of the Chief Administrative Officer, the General Manager of Finance and Corporate Services and Acting City Treasurer, and the General Manager of Environmental and Engineering Services and City Engineer, the Civic Administration BE DIRECTED to: (a) (b) develop a Joint Venture Agreement with the University of Western Ontario and Trojan Technologies for the development of a Wastewater Technology Centre; support a multi-party FedlDev application to secure funding for Phase 1 of the project, with City support being identified as: (i) (ii) in-kind land contribution adjacent to the Greenway Pollution Control Plant; and payment or waiving of applicable City of London application and permitting fees and charges (estimated value $300,000); (c) approve the broad principles for cost sharing of future costs of a waste water research facility as outlined in the attached appendix; The Corporation of the City of London Office: ext Fax: webmaster@london.ca w.london.ca

5 Aqenda Item # Page # (d) (e) appoint staff from the Planning and Development Department, the Chief Administrative Officer's Office and the Environmental and Engineering Services Department to manage the project through various stages of its construction; and progress with the viability study and necessary site plan approvals, design and tender requirements for the construction of the facility;. it being noted that the Board of Control heard a verbal delegation from the General Manager of Environmental and Engineering Services and City Engineer, A. Chakma, University of Western Ontario and M. DeVries, Trojan Technologies, with respect to this (27/30/BC) C. Saunders City Clerk Icrg c. A. Chakma, President & Vice-Chancellor, University of Western Ontario, Natural Sciences Centre, Room 120A, London ON N6A 567 M. DeVries, Trojan Technologies Inc., 3020 Gore Road, London ON N5V4T7 London Economic Development Corporation R. W. Panzer R. Standish T. Fediw J. P. Barber G. T. Hopcroft R. Sanderson M. Hayward M. Turner J. Freeman Documentation Services Representative

6 Agenda Item # Paqe # London CANADA November 24,2009 J. A. Fielding Chief Administrative Officer Suite 1105 dv. A. Cote General Manager of Finance and Corporate Services and Acting City Treasurer I hereby certify that the Municipal Council, at its session held on November 23, 2009, resolved: 26. That, on the recommendation of the Chief Administrative Officer and the General Manager of Finance and Corporate Services and Acting City Treasurer, the Civic Administration BE DIRECTED to develop a Joint Venture Agreement with the University of Western Ontario and Fanshawe College on the development of Phase IV of Innovation Park as an Advanced Manufacturing Industrial Park and that the following principles be used to guide the joint venture: Phase IV of Innovation Park, which consists of acres of serviced industrial land, is to be designated as an advanced manufacturing industrial park; twenty-five acres of industrial land in Phase IV of Innovation Park is to be transferred to the University of Western Ontario to be used for research and incubation of advanced manufacturing; ten acres of industrial land in Phase IV is to be transferred to Fanshawe College to be used for research and incubation of advanced manufacturing; the remaining 94.3 acres of Phase IV of Innovation Park will be retained by the City as industrial land targeted at advanced manufacturing industries; the City, University of Western Ontario and Fanshawe College will enter into an agreement that defines advanced manufacturing industrial uses and related research facilities that would be permitted in the Advanced Manufacturing Industrial Park and sets out principles for development (as set out in the attached Schedule); The Corporation of the City of London Office: ext Fax: webmaster@london.ca

7 Aqenda Item # Paqe # (9 the City, University of Western Ontario and Fanshawe College will develop design standardsfor the Advanced Manufacturing Industrial Park that will place limits on outside storage, provide for enhanced landscaping, establish design principles for buildings and encourage sustainable development practices; (9) (h) the University of Western Ontario, Fanshawe College and the City would be responsible for overseeing development on their lands subject to the use and design restrictions that are agreed upon and will form a working committee to oversee the development of the Park; and the underlying key principle behind the development of the Advanced Manufacturing Industrial Park is to encourage manufacturing and research uses which are going to result in economic growth in the City of London and provide jobs in advanced manufacturing; it being noted that the Board of Control heard a verbal delegation from the General Manager of Finance and Corporate Services and Acting City Treasurer, A. Chakma, University of Western Ontario, and P. Rundle, Fanshawe College, with respect to this matter. (D26-01) (26/30/BC) C. Saunders City Clerk lcrg c. A. Chakma. President & Vice-Chancellor, University of Western Ontario, Natural Sciences Centre, Room 120A, London ON N6A 5B7 Dr. H. W. Rundle, President, Fanshawe College, P.O. Box 7005, London ON N5Y 5R6 London Economic Development Corporation R. W. Panzer J. P. Barber G. T. Hopcroft R. Sanderson D. Coffin Documentation Services Representative

8 Economic Summit 2009: Creating the Action Plan for the Next Economy Like many communities across Ontario, London has experienced significant economic challenges in the past year, which have negatively impacted both our city and region. With ongoing loss of manufacturing jobs, increasing unemployment, moderate growth in technology companies and healthcare jobs, and slow population growth in comparison to other Canadian cities, London must address these and other key issues to ensure its future economic prosperity. On Thursday, September the LEDC hosted London s Economic Summit at the London Convention Centre. Key business leaders and stakeholders joined representatives from London s major industries, sectors and organizations including: Advanced Manufacturing, Green Technologies, Food Processing, Life Sciences, Healthcare, Digital Media, Technology, Education and Institutions. Participants joined representatives from academia and local government to offer insights into business needs and challenges, opportunities for growth, and support requirements to grow their industry sectors. They shared their thoughts and recommendations on how to best utilize London s core advantages and determine additional resources needed for future success. The summit welcomed two keynote speakers: TD Deputy VP Economics Derek Burleton shared his views and latest statistics regarding the current and forecasted state of the economy and how it will impact our region, Ontario and Canada. Dr. Amit Chakma, the new President of the University of Western Ontario challenged the audience to take calculated risks, to think outside the box, and to work collaboratively to move London ahead with a common vision. Each participant received a workbook prior to the Summit titled Advantage: London, Creating the Action Plan for the Next Economy, providing details on the changing economy and background information on each of the industry sectors being discussed. The summit was extremely successful, with clear recommendations for initiatives that would help support London s strategic economic plans.

9 Key Recommendations Summary Short Term 0 Airport Gateway 0 Cost Competitiveness Study 0 Process Enhancements 0 Implementing Downtown Action Plan 0 Green Technology Incubator Study 0 Food Innovation Strategy and possible incubator 0 London Envoy 0 Creation of Economic Development fund Long Term 0 Advanced manufacturing/green tech park 0 Green Technology validation centre 0 Medical Device Initiative 0 401/402 industrial park 0 Downtown Campus with Fanshawe and Technology integration The LEDC, City of London, and community partners will initiate the processes, involve the stakeholders and move these projects forward as quickly as possible. A brief overview of each project follows: Airport Gateway - To capitalize on new regulations designating the Great London International Airport as a Free Trade Zone and the new Open Skies agreement with the European Union, this plan includes a facilities expansion for Cargo, in partnership with the Airport, City of London and Federal Government. Cost: $1 Imillion shared between partners. Cost Competitiveness Study - London industries have identified concerns over London's competitive business costs versus other parts of the province and US Border States. The LEDC will undertake a competitive cost analysis to evaluate London's competitiveness relative to electricity. water, sewage treatment, gas, building fees, taxes and other operational costs. Process Enhancements -With current economic pressures and increased competition in the region for new business, it is crucial to enhance our competitive advantage by ensuring business processes at City Hall are streamlined and centered around providing the best customer experience. Downtown Action Plan Implementation - Participants supported the need to proceed with recommendations from the Downtown Action Plan, addressing safety, cleanliness, bus, parking and social service needs. The City has seen the benefits of recent investment with new residential developments, the JLC, Market and Citi Plaza investments. Green Technoloav Incubator Study - The LEDC will develop a business plan to create a showpiece Green Technology Incubator using dedicated property in the city (south of 401 was suggested), with the specific objective of attracting new investment in the green technology sector. It was suggested it may be an opportunity to partner with the city planned initiative for the green recycling and handling centre. This incubator would demonstrate London's leadership in green technology and particularly in the area of biomasslbiogas and new recycling technologies. London has a key advantage to attract new green technology investments as a result of location, transportation infrastructure (air, rail, highway) and research taking place at Fanshawe College and Western. Cost: Incorporated into LEDC's current strategic plan and no additional costs required. Food Innovation Strateav - The LEDC will develop an Innovation Strategy for fostering entrepreneurial growth in the agri-food sector. This includes creating a food processing

10 incubator, knowledge sharing and development of community resources. London is one of the best locations in Ontario for supply and food-processing capabilities. With a strong transportation system, the local food movement, growth in speciality and ethnic foods and an entrepreneurial spirit, opportunities are growing in this sector. This will be developed in partnership with Fanshawe and Western and the local industry. London Envoy - London requires a centralized government relation resource dedicated to working with the provincial and federal governments in Toronto and Ottawa. This person would represent London and interface with the large number of ministries that the various London agencies and municipality work with on a regular basis. A taskforce has been created to look at the available options. Creation of Economic Development Fund -The LEDC and its Board is recommending Council to formalize an economic development fund to leverage opportunities with federal and provincial funding programs and potential private sector partners. The $55 million fund would be created using the available resources originally allocated for projects that have since been funded through federal and provincial stimulus funds. Advanced Manufacturina and Green Technoloav Park -A recommendation has been put forth to City Council to consider the creation of a specialized business park that integrates opportunities for advanced manufacturing and green technology companies to build leading edge facilities to advance their businesses. This park would integrate research and development facilities with educational institutions and government agencies. The long term goal would be to achieve a community of leading advanced industries that are created through private sector collaborations with research. Through the development of value added products and services, these organizations will represent a new strength in London s advanced manufacturing and green technologies development. Green Technoloav Validation Centre - London is a leader in green technologies, particular in the areas of water treatment, biomass technologies and solar systems. The availability of safe, affordable water treatment solutions is a basic necessity, and London-based Trojan Technologies is having a global impact through its commitment to research, technological advancements and philanthropic efforts. The green technology industry requires the ability to validate and demonstrate performance of new technologies in real world situations prior to going to market. With the creation of a Green Technology Validation Centre, in partnership with Western, Fanshawe and London Hydro, London would become a worldwide leader for water, solar and biomass research and product development, attracting new investment and research collaborations. Medical Device Initiative - London is one of the key cities in Ontario for the medical device industry, but needs to create visibility, a long term strategy and build upon its advantages to advance London as a leading centre in Canada. There are a number of identified areas that London can build upon --this two year initiative would be the basis of building the Medical Device Centre of Excellence for London. The key success is building support and opportunity for existing companies, and providing a mechanism for new technologies and research developed in London to create new companies generating investment and employment. This would be a team effort between the LEDC, WORLDiscoveries, Western, Ivey, TechAlliance, Lawson, Robarts, the UWO Research Park, Stiller Centre, the NRC and Fanshawe College. Initiatives would include: - Creation of a broad, integrated vision and roadmap for the foundation and growth of the industry including a business and implementation plan - Development of a communications planhalue proposition for all audiences including web, lobbying, government funding mechanism and industry - Recruitment, retention, and professional development as there is an identified gap of senior business leaders available to support specialty positions and burgeoning start-ups - Coordination of stakeholders from academia, industry, Research & Development and government - Own the Segment - One of London s true key advantages and not currently held by any other Canadian City.

11 401/402 Industrial Park - This plan would see the city acquire and service approximately 100 ha of industrial land at the 401 and Veteran's Memorial Parkway (VMP) including additional water and wastewater treatment plan capacity and the addition of an interchange at Bradley and the VMP. The City would also acquire and service approximately 100 ha of land in the Wonderland Road area around 401/402. This area would also require an extension of a trunk water-main, the extension of a trunk sanitary sewer from the Wonderland Pump Station, road improvements, and a new interchange at Wonderland and the 401. Downtown Campus -This recommendation would see the creation of a downtown Digital and Technical Arts Campus in partnership with community arts, educational institutions and the private sector. London is one of the largest cities in Canada that does not have a third main education centre. There are many opportunities to add additional diploma, certificate and polytechnic programs that would be supported by our current institutions. The addition of a downtown campus would continue to invigorate the downtown core, add new revenue, tand new downtown residents. It would be a great platform to support the needs of downtown businesses in technology, digital arts, media and other specialties. Keeping you informed The LEDC is committed to providing regular updates on these initiatives. We will provide progress reports, providing information, with our partners, to the media, on our website, through our social media tools and newsletter, and other venues as required.

12 Agenda Item n Page ft Economic Summit Strategy 0 LEDC commissioned Prosperity Report Spring 09 0 Report delivered in-depth look at London advantages and recommended potential segment initiatives 0 Council requested opportunity to have community and council input - Economic Summit September 10th participants across all stakeholders provided input 8 LEDC took input and in conjunction with strategic plan developed a priority of initiatives 8 12 items to be undertaken by LEDC for Fall 09 and 0 Presenting immediate action items and longer term projects to Committee of Whole

13 Creation of Economic Development Fund World Class Approach - Allocation of Resources 0 Allocate $55 million from capital savings of 0 Leverage of provincial and federal funding 0 Initiate plans to include private sector partners 0 Determine series of projects to support 0 Develop long term funding mechanism 0 Allows for long term strategic planning and capability to access future government plans GLIAA Airport Gateway 0 Cargo Project $11 million 0 Good awareness but no funding commitment 0 Develop action plan with GLIAA, city staff, Provincial and Federal reps to obtain funding 0 Time sensitive due to competition and US border 0 Will require municipal contribution based on available funding mechanisms 0 Airport cargo improvements are a crucial piece of our economic strategy

14 Competitive Cost Study Costs of doing business identified by several segments as a key deciding factor in ongoing operations 0 Key factor for attraction files for LEDC 0 Need to study costs in Ontario and surrounding states Study to cover key cost elements - water, electricity, gas, taxes, real estate, and municipal charges 0 LEDC to undertake immediately - some data is already collected and in reports Estimated cost of $50,000 Allow LEDC and city to obtain third party expertise to address concerns on costs Immediate Recommendations- I

15 Aqenda Item # Page # Business Friendly Processes 0 City is moving to several new processes to address concerns and streamline processes 0 Need to rise above competitive jurisdictions 0 Important for both new attractions and existing 0 LEDC to address specific complaints instead of dealing with anecdotes in conjunction with city : 0 City as an ally not a roadblock 0 Determine green incentives that would be 0 Great link to agri-food sector for biomass 0 Support from private sector for series of unique technologies in co-generation 0 Access to transport materials

16 Aoenda Item # Page # Immediate Recommendations- LondonEnvoy 0 Centralized focus for government relations 0 Central position to support multiple London needs 0 Focus in Toronto but also requirements in Ottawa 0 Support Government Liaison office 0 Absence from Toronto is a natural disadvantage

17 Longer Term Projects- Gateway Phase 2 and 3 Additional serviced land north of 401 on VMP Interchange at Bradley and VMP Wonderland 401/402 area with new interchange at 40 1 Purchase and service 250 acres with visibility to Highway for industrial and r & d Servicing requirements provided from Wonderland Station and improvements on Wonderland Road from 402 to 401. Provides strong high visibility area Advanced Man ufact u ri ngl Green Manufacturers Park 0 Specialized business park 0 Leading edge production facilities 0 Integrated with research from academia and 0 Drive partnerships with province and associations 0 Target opportunity for green - solar, specialty heating, advanced home products etc. 0 Work with Fanshawe to integrate with training and workforce programs

18 Longer Term Projects - Downtown 0 Create campus for technical and digital arts in partnership with educational institutions, community arts, private sector and government a London is one of largest cities without a technical institute or second university a Add specific diploma, certificate and polytechnical 0 Would invigorate the downtown core 0 Support needs in tech sector and digital media 0 Multi-use facility for a number of stakeholders Longer Term Projects - Medical Device Initiative a London is a leader in medical device industry 0 Two year plan to develop London strategy as the leading centre for medical devices in Canada - Centre of Excellence a Team effort of LEDC, WorlDiscoveries, UWO, TA, LHSC, RP, Stiller, and Fanshawe a Create broad vision, communications strategy, develop funding mechanisms, and integrate government and industry a Own the segment - Exploit the London Advantage

19 Longer Term Projects - Green Technology Validation Centre 0 London is leading in many green areas 0 Requirement to validate technology in real world 0 Water treatment, solar and geothermal, plus wind 0 UWO and Fanshawe are leading in renewable research 0 Will be a key and unique way to attract industry 0 Build at Greenway Centre 0 Partnership capabilities extremely strong 0 Green energy act will drive opportunities due to Canadian content requirements Recommendation Summary 0 LEDC as a strong economic development organization has made key recommendations 0 Build an economic fund 0 Our competition is well resourced 0 Invest in our community to secure our economic future

20 London CANADA November 10,2009 Mayor A. M. DeCicco-Best J. A. Fielding Chief Administrative Officer Suite I hereby certify that the Municipal Counc, at i session held on November 9, 2009, res( e 19. That the Mayor and the Chief Administrative Officer BE DIRECTED to continue to coordinate a strategy with the City of London s regional partners to seek a commitment from the Province of Ontario to redirect funding that was originally being offered to assist with keeping the St. Thomas Assembly Plant operational, towards economic gateway and other manufacturing strategies that would provide employment opportunities in the region. (19/27/BC) C. Saunders City Clerk /crg c. i G. T. Hopcroft The Corporation of the City of London Office: ext Fax: webmaster@london.ca