ECONOMIC DEVELOPMENT & TOURISM STRATEGIC FOCUS. Council Workshop 2016
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1 ECONOMIC DEVELOPMENT & TOURISM STRATEGIC FOCUS Council Workshop 2016
2 WORKSHOP PURPOSE To Review the Economic Development Function Key Focus and Priorities Rationale Impact Partners To Discuss Role of Council To Outline Alternative Delivery Structures Suggested Go-Forward Approach
3 DEFINITION ECONOMIC DEVELOPMENT & TOURISM (EDT) What is Local Economic Development? The purpose of local economic development (LED) is to improve the economic capacity of a local area to enhance its economic future and the quality of life for all. Local economic development is a process by which public, business, and non-governmental sector partners work collectively, to create better conditions for economic growth and employment generation. Objective - To provide desirable job opportunities enhanced prosperity, and positive quality of life within the community. Haldimand County s Economic Development and Tourism division leads activities focused on business development through: supporting the growth of local entrepreneurs and business, attracting new business investment and visitors to the County, and working with partners to facilitate the growth of key economic sectors.
4 ECONOMIC PROFILE Population: 44,876 There are more employed residents in Haldimand County than there are jobs. Total Jobs in Haldimand: , 733 Sources: NHS 2011 & WPBGE 2015.
5 WHY IS ECONOMIC DEVELOPMENT IMPORTANT? EDT is an investment in future revenues to the public and private sectors that will be available for reinvestment in other programs and compounds employment growth. It supports local existing businesses by providing resources, assistance and connections to assist in retention and expansion. Globalization, technology and economic change are making the world an ever more competitive place. As other communities invest in economic development and tourism so must Haldimand - if only to maintain its profile and position. Economic Development can be simply defined as an investment in efforts to retain and attract employers, attract tourist visitors and increasing local employment and prosperity. The role and contributions of industry and business in a community is central to its viability, vitality and sustainability. Local businesses also support sports league sponsorships, membership in community service clubs and support to communities.
6 WHY IS ECONOMIC DEVELOPMENT IMPORTANT? CON T Contribution to municipal tax levy lessens tax burden on residential rate. Current % of taxes paid by: - Residential 76.53% - Agriculture 3.51% - Commercial 8.72% - Industrial 7.36%. Rate supported budget is affected significantly - business growth provides an opportunity to spread costs across more users. Business attraction, retention and expansion contribute to employment and assessment base and better opportunities for all residents. Indirect returns accrue from such outcomes as improved life/work relationship commuting, less environmental footprint, improved quality of life.
7 WHY IS TOURISM DEVELOPMENT IMPORTANT? Tourism development focuses on creating an appealing mix of attractions, supporting services, and targeted marketing programs to increase visitation to the community. Increases in visitors will generate support businesses and County brand recognition. It too is competitive in that there are many destination options and communities investing in attracting the same tourists. Several key County industries are supported, or rely primarily on tourism including: food services, transportation, accommodation services, arts and recreation and cultural industries (this cross section represents approximately 170 businesses in Haldimand). Employment in those cross sectors represents 8% of total estimated employment (1225 jobs) in Haldimand County (2015), and approximately 2% of all employment (289 jobs) can be linked directly to serving tourists. These figures are based on recorded visitors [253,909] to Conservation Areas (2) and Provincial Park (1). Success in tourism creates new markets and revenues and also exposes visitors to Haldimand s attractiveness as a place to live or invest in.
8 WHY HAVE A LOCAL ECONOMIC DEVELOPMENT & TOURISM FUNCTION? While EDT is an optional service for municipalities There is an overall lack of business resources available to rural communities. Provincial representatives from key ministries are less present in the community and may only make 1 or 2 visits a year to a handful of businesses. Each existing organization has specific focus and limited financial and human resources Additionally, these representatives of government agencies must remain neutral and cannot promote Haldimand County over another community The corporate image benefits by having an economic development function and allows the business voice to be present in key local decisions affecting the community Without a local EDT function there would be a lack of coordination, facilitation and each individual business would be left to find its own way. EDT is often the core partner that brings all the other stakeholders to the table to provide a greater understanding of the role of these agencies and alignment at a local level In our community economic development and tourism initiatives are closely aligned with community vibrancy. A local function provides the opportunity to coordinate and assist between departments in the support and promotion of festivals and events as well as to align strategies /resources to include economic development as a driver when making community investments (i.e. pathways, trails and community amenities)
9 RANGE OF ACTIVITIES ECONOMIC DEVELOPMENT & TOURISM DIVISION Site selection data Community profiles, statistics, economic research Information and customer service Information on incentives, funding and grant programs Business advisory services Property marketing & investment attraction Development & redevelopment services Capacity building for entrepreneurs Downtown revitalization Marketing and communications about the County Events and promotional activities Liaison and advocacy with various government levels Tourism development, marketing, partnerships Business, retention and expansion
10 EDT S CURRENT FOCUS BUSINESS RETENTION & EXPANSION (BR&E) STRATEGIC FOCUS WHY HOW BENEFIT Business Retention & Expansion Continues To demonstrate to existing firms that the community appreciates their contribution to the local economy To encourage expansion that leads to sustainable job growth and increase in tax base To address and assist in red flag issues To assist local businesses in gaining awareness of available resources To develop collaborative relationships for participating in comprehensive long-range retention and expansion activities # 1 Priority Connect businesses with available resources, County and other agencies Conduct business analysis to identify operational challenges with a view to finding solutions Conduct industry analysis to ascertain trends and changing environment Business visitations to assess efficiency, discuss new opportunities, new products and new market etc. Business tools including CIP program, training workshops, online business directory, monthly newsletter Up to 80% of all new jobs in small communities come from existing business expansion An effective retention strategy keeps community leaders informed about possible changes including attrition Informing businesses about various incentives and programming and ensuring concerns are addressed A strong, visible BR&E strategy sends a message to prospective new businesses that a positive climate exists for growth and prosperity in the community 93% of businesses that completed the EDT prioritization matrix in the 2015 business survey indicated this should be a continued priority or would like to see it as a primary focus. Working with partners to provide a full range of services including business planning, financial management, loans
11 EDT S CURRENT FOCUS BUSINESS RETENTION & EXPANSION (BR&E) CONTINUED STRATEGIC FOCUS WHY HOW BENEFIT Business Retention & Expansion To build business capacity To provide better information and understanding for all local leaders of the strengths and weaknesses of the business climate. Haldimand Business Network Staff act a facilitator to provide resources and information to help businesses develop capacity to grow 2015 Stats Q1-Q4: -54 businesses visited* -20 visits connected to Haldimand County funding & supports -12 visits providing general information & building stakeholder relationships -4 visits connecting businesses to federal funding opportunities -4 visits connecting businesses to provincial funding -9+ referrals to key partners Communities working to support local businesses often find these companies develop a greater sense of commitment to the community. Portray positive image of County Assist businesses with expertise leveraging economy of scale staff play coordinator role *Tourism, Manufacturing and Agriculture businesses were the industries with the most visits.
12 EDT S CURRENT FOCUS BUSINESS ATTRACTION STRATEGIC FOCUS WHY HOW BENEFIT Business Attraction To create new jobs and capital investment To develop existing industrial lands that could contribute to tax base and employment To infuse new industry into the community Develop community information, investment package & marketing material to showcase the County outside of the region. Target new industries that are complimentary to the existing business base Participate in targeted business trade shows and exhibitions Increased Employment, tax base, user fees (water and wastewater) Opportunity to obtain new / additional markets for existing businesses Create New B2B opportunities Increased diversification of economy To compensate for attrition of existing businesses Conduct outward missions and international visits. Promptly respond to investor inquiries (site selectors, provincial, businesses) Raised profile of Haldimand County as an investment opportunity at provincial, national and international level Conduct site tours with visiting investors and provide local knowledge Site Certification
13 EDT S CURRENT FOCUS BUSINESS ATTRACTION Additional Comments Staff have ongoing involvement in Business Attraction however in a mostly reactive role Challenges with current inventory of industrial lands - privately owned, not shovel-ready Currently no strategic focus i.e. specific sectors, businesses types etc High upfront costs for international travel return on investment is long-term 3 to 5 years or greater 2 RFIs received from Ministry of Economic Development, Employment and Infrastructure required to staff to identify sites, and collect information related to zoning, servicing, demographics, and transportation.
14 EDT S CURRENT FOCUS RURAL & AGRICULTURE DEVELOPMENT STRATEGIC FOCUS WHY HOW BENEFIT Rural & Agriculture Development Improve quality of life and quality of place in rural areas Agriculture remains a historic and significant economic sector & employer in Haldimand Agriculture is an important part of the community and economy. The large amount of the farmland is a competitive advantage Rural businesses face unique challenges from those in urban centers Reflects 3.51% of the tax base (2015) which has increased from 2.68% (2006) Opportunities exist as industry continues to change with new focus on innovation and value added activities Promote and encourage value-added agriculture through workshops, sharing information on trends, building capacity. Liaison to Agricultural Advisory Committee Establish and promote the RBTCIP and RWQP Promotion awareness of local food through Harvest of Haldimand: Branding, Events, Map, Farmers Markets Connections to OMAFRA Key contact for renewable energy projects Protection of agricultural lands Encourage sustainability Increased diversity and new sources of income for farmers Encourage entrepreneurship and youth in farming Create awareness that can lead to increased sales Development of new agricultural business, processing and on farm operations
15 EDT S CURRENT FOCUS RURAL & AGRICULTURE DEVELOPMENT Additional Comments 2015 Tax Assessment of Farmlands was $742,470,847 ; this is approximately 13% of the total assessed value of lands Contribution to tax levy has increased from 2.68% in 2006 to 3.51% in 2015 There has been a 98.3 % increase in farms reporting over $500,000 in gross farm receipts; from 59 farms in 2001 to 117 in 2011 Total # of farms in Haldimand County has decreased from 951 farms in 2001 to 858 in 2011 In 2011, Haldimand County 1400 residents were directly employed by the Agriculture industry
16 EDT S CURRENT FOCUS TOURISM DEVELOPMENT STRATEGIC FOCUS WHY HOW BENEFIT Tourism Development Fundamentally a key opportunity to increase visitor spending for local goods and services. Provides an opportunity to promote Haldimand County s quality as a great place to live, work & play Aligns and contributes to community vibrancy showcasing our parks, pathways and trails as key tourism assets Economic diversification of County Strategically focused on developing key tourism assets and opportunities that align with SWOTC and Premier Ranked Study Key publications (from creation to distribution) close to 40,000 distributed in 2015 Haldimand Tourism Network Meetings Promotion and advertising through: tradeshows, social media, videos of key assets and experiences, festivals and events SWOTC and other partnerships Increased synergies between tourism businesses Cohesive brand for businesses Provide current knowledge to extend reach of marketing, for example Build A Better Beach campaign through SWOTC Destination building Information for tourists which can lead to increased spending Leverage natural assets of the County such as the lakefront and Grand River Take advantage of economic trends: lower Canadian dollar, ecotourism, cycling Funding for Tourism Information Centers Respond to inquiries Signage programs including cycling, directional, wayfinding Lakescape Action Plan and other capital improvements Extended shoulder seasons Well supported by Province through SWOTC
17 EDT S CURRENT FOCUS TOURISM DEVELOPMENT Additional Comments A total of 1225 jobs (8% total employment) in Haldimand County fall into the industries that support tourism (includes retail, services etc.) Of those approximately 289 (2% total employment) jobs directly relate to serving/supporting tourists Using stats collected from the 2 Conservation Areas and 1 Provincial Park we determined the estimated economic impact to local business in Total Recorded Visitors to Parks in 2015 (32% same day, 68% overnight stay) 253, 909 Estimated Economic Impact (2015) $25,451,292 * * Note: This number is conservative and has been adjusted to reflect local knowledge. The estimated economic impact reflects data of typical tourist spending on local accommodations, food and beverage purchases at stores and restaurants, recreation, retail and entertainment etc.
18 EDT S CURRENT FOCUS MARKETING & BRANDING STRATEGIC FOCUS WHY HOW BENEFIT Marketing & Branding Give positive identity and presence to the County, both with residents and externally Help create quality of place A business and resident attraction tool Through marketing materials created by Division including newsletter, news articles, maps, postcards Outreach and host travel media and travel bloggers Joint marketing and promotions with key partners Development and promotion of key videos and marketing tools Consistent positive message and branding Attraction of more tourists, residents, businesses Awareness of one stop business supports Raise profile of our communities Updating of website Communication through newsletters, press, radio, cable 14 Outreach at various events internal and external to County Signage including urban wayfinding, tourism and agricultural directional, cycling routes etc. Promotion of festivals and events
19 EDT S CURRENT FOCUS OTHER MISCELLANEOUS PROJECTS & ACTIVITIES Assisting BIAs in better governance, terms of reference, coordinate annual budget submissions/approval and annual reports. Coordinate the Mayor and Council's events such as Spring Breakfast and Business Excellence Awards Lead staff on the Dunnville Farmers's Market Redevelopment Project Assist with the coordination of Small Business Week and Local Food Week activities Facilitate and coordinate Filming requests Track business trends, government incentives programs and community demographic information to support economic development
20 KEY PARTNERS ECONOMIC DEVELOPMENT & TOURISM DIVISION Our Key Partners provide an opportunity to leverage a combination of resources. BIAs/Chambers of Commerce/ Board of Trade Grand Erie Business Centre Community Futures Development Corporation, Small Business Enterprise Centre Workforce Planning Board of Grand Erie Conservation Authorities/Provincial Parks Health Unit & Social Services Employment Ontario (St. Leonard s Community Services) Ontario Southwest Tourism Corporation Economic Development Council of Ontario
21 KEY PARTNERSHIP ACTIVITIES EDT has established numerous key partnerships that provide support to our local businesses and assist in furthering our reach in the various markets. Ontario s Southwest (SWOTC) Partnership Provided 50% of costs to produce the Haldimand County Sizzle Video, the recently released Selkirk video and the new cycling video In partnership attended the Ontario Adventure Show and a Culinary Showcase of our region in Toronto 7,093 Page view of the Rock Point Cheat Sheet 664 Referral clicks to Haldimand based operators 208 referral clicks from waterfront website to Haldimand County tourism 1 of our local businesses signed up for an offer and received 103 clicks from the offers page, 83 clicks to the website and 42 clicks to download the coupon
22 KEY PARTNERSHIP ACTIVITIES Rural Water Quality Program County provides $25,000 per year (over 5 years) 3 Conservation Authorities provides input on proposed projects Agricultural Advisory Committee reviews and approves projects that meet the guidelines To date Haldimand County grants approved are $76, Total investment in the Rural Water Quality Project is $679, Grand Erie Business Centre Has sponsored our Small Business Workshop series for 2015 Lead partner coordinating the Youth Entrepreneurship Expo (110 youth) that EDT partnered on
23 KEY PARTNERSHIP ACTIVITIES Provincial Site Certification 10 acre parcel of land in Frank Marshall Business Park now site certified. 1 of 10 properties in Ontario currently certified The site certified programs will be highly marketed via: A sell sheet will be created and marketed through Through the 11 international trade offices (30 investment lead representatives) Promoted at key tradeshows including The Site Selectors Guild, IAMC (Industrial Asset Management Council) and others Feature articles and promotions in key publications including Area Development and Site Selection Visibility on Ontario s social media channels
24 WHAT SHOULD EDT S ROLE BE IN THE COMMUNITY? 2015 Haldimand County Business Survey; 119 responses received (28% Retail, 6 % Mfg, 6 % Agri-business, 11% Tourism, 49% Other) % of businesses surveyed want to see EDT continue business attraction activities such as: tradeshows, marketing materials & promotion of industrial lands -41% of businesses surveyed want to see more business retention and expansion activities (such as business visits, connecting business to funding programs, and provincial supports) When comparing key priorities in the survey responses Business Retention received the highest weighted average from respondents.
25 WHAT SHOULD EDT S ROLE BE IN THE COMMUNITY? 2015 Haldimand County Business Survey responses indicate; - Community Improvement Grants are important to local business (33% want the grants to continue, 43% would like to see more grants and 15% believe it should be a primary focus of EDT) - A combined 82% of respondents indicated they would like to see supporting growth of the Agriculture sector to be a continued activity, or thought EDT should do more moving forward - Tourism Development received high levels of support with 23 businesses (38%) saying activities should continue, 20 (33%) indicating they would like to see more activities and 13 (21%) selected it as a primary focus area
26 ECONOMIC DEVELOPMENT MODELS Economic Development Models that currently exist in Ontario 1. Non-Profit Economic Development Corporation 2. Municipal Model 3. Hybrid Municipal Model with an Advisory Committee Regardless of what model is in effect in a municipality, the critical factors for success in economic development are the establishment of a clear mandate for the function, the allocation of sufficient resources required to deliver on the mandate and measurable performance indicators to track effectiveness and value.
27 ECONOMIC DEVELOPMENT MODELS 6 Main Factors to Consider; when determining which service delivery model may be most suitable 1. Operational Costs and Access to External Funding 2. Relationship with Business Community 3. Relationship / Alignment / Communication with Local Government 4. Administration and Regulation 5. Co-location with other agencies 6. Deal-making and the provision of incentives
28 ECONOMIC DEVELOPMENT MODELS Non-Profit Economic Development Corporation External A key component is the successful engagement of the private sector (as board members/advisors and financial contributors). Primary focus of resources to business attraction activities and marketing industrial lands. Often located in newer, suburban growth type cities with large land supply and new economy type businesses. Typically supported by a base budget from the municipalities they represent,. (Typically 85% or more of revenue comes from municipality) remainder augmented from private sector support, from federal/provincial grants and fundraising.
29 ECONOMIC DEVELOPMENT MODELS Non-Profit Economic Development Corporation External Board is responsible for all mandated and operating costs includes private sector members and Council representatives/appointees. Board of Directors sets policy and staff member are employees of the corporation. May allow the staff to focus on solely economic development activities without distraction of other municipal matters, however, staff often have to spend time on fundraising that is necessary for organization's stability. (Town of Oakville dissolved Economic Development Corporation primary reason was the private contributions decreased and municipality was forced to annually increase contribution). Not under direct control of municipal council, but one step removed from municipal administration may generate communication and coordination challenges between the Corporation and Municipality.
30 ECONOMIC DEVELOPMENT MODELS External Model PROS Opportunity for business leaders to become fully engaged and accountable through membership on the board. More autonomy, less bureaucracy ability to make fast-paced decisions based on client needs. Can apply for funding that might be unavailable to municipal department. Helps ensure focus remains on economic development rather than becoming a special projects department or assigned other projects that don't fit with any other department.
31 ECONOMIC DEVELOPMENT MODELS Municipal Economic Development Model Internal Economic Development initiatives are primarily development focused which requires strong connections between planning, public works, engineering and other municipal departments. Often municipality will locate these associated services together to encourage cooperation and enhanced customer service for economic development. Internal model usually include priorities such as business retention and expansion, industrial land development and small business and start-up support, tourism and marketing.
32 ECONOMIC DEVELOPMENT MODELS Municipal Economic Development Model Internal Either stand-alone department, integrated with another department or part of CAO Office. Accountable to Council for delivery of programming. Policy set by Council and staff are employees of municipality. Funded as part of municipal operating budget and common expenses (facilities, human resources, accounting) are typically absorbed in corporate services or other budget lines and not reflected or reported in economic development budgets.
33 ECONOMIC DEVELOPMENT MODELS Internal Model PROS Alignment of priorities and programs through integration with Corporate priorities. Economic development strategic plans can be more directly integrated with other municipal strategic plans. Accountability to electorate directly through Council process. Increased collaboration between departments and economic development staff. A separate corporation structure leads to a degree of isolation of the corporation and is not part of the "municipal team". When integrated with municipality, economic development is better able to facilitate development and business issues. Greater involvement in communications and marketing. Marketing within an external model would be primarily focused on marketing associated with economic development and tourism and less on community services/activities and other "City Hall News" or overall community branding.
34 ECONOMIC DEVELOPMENT MODELS Hybrid Model Combines features of both types of economic development organizations. Engages public sector through an advisory role usually comprised of Mayor and 1 or 2 members of Council and majority of members composed of senior business leaders in the community. Advisory Committee is able to provide strategic direction on economic development matters and support the municipal efforts in marketing and business attraction activities. The economic development function remains a municipal responsibility and enjoys all the advantages of being integrated with the municipality's development resources in order to efficiently service the business community's needs.
35 ECONOMIC DEVELOPMENT MODELS Hybrid Model PROS Most successful approach is found in communities that employ a cooperative public- private model. Irrespective of where the function remains within the municipal structure it is increasingly important to fully engage private sector and obtain their assistance. A Business Development Advisory Committee does this. Advisory Committee does not deal with operational matters like human resources, finance, information technology etc. Instead it only focuses on economic development, strategic planning and supports the role of the economic development team as it implements the strategic plan including active participation. (Three best examples include Brantford, Mississauga, and Brampton).
36 ECONOMIC DEVELOPMENT MODELS DELIVERY MODEL ANALYSIS Analysis of delivery model used by 98 local municipalities in Ontario for economic development services. Delivery Model * External Internal Outsourced Subtotal *Performed by Haldimand County
37 KEY OBSERVATIONS ON WORK PRIORITIES ECONOMIC DEVELOPMENT & TOURISM DIVISION. 1. What We are Doing Well That Aligns Well with Community Priorities Business Retention and Expansion Place-making/Promoting Quality of Life Agricultural Development / Local Food Tourism Promotion / Support 2. Things We Need to Improve Upon Marketing & Branding Haldimand County Strategic and Proactive Programs Business and Investment Attraction Need a Strategy, Need to Secure Land Greater Coordination with GEBC Coordination/Communication with Council Tourism Product Development including Itinerary Development and Packaging
38 KEY PRIORITIES TO AUGMENT THE EXISTING PROGRAM ECONOMIC DEVELOPMENT & TOURISM DIVISION The following provides a high level overview of three key priorities that are suggested to improve the Economic Development & Tourism program. It is about sustained focus and execution of deliberate and detailed programs.
39 KEY PRIORITIES MOVING FORWARD BETTER STRATEGIC FOCUS 1. Create a Real Business Attraction Strategy Identify the key business sectors, types of business including foreign investment opportunities that the County should target; Create a business plan to implement targeted marketing, alliances, success measures, resource requirements be more proactive and aggressive Address the land control issue : Acquire land / servicing Real partnerships to market joint responsibility Enhance and build relationships with realtors, developers, site selectors, business executives and entrepreneurs. Increase involvement in associations specifically related to key sectors.
40 KEY PRIORITIES MOVING FORWARD BETTER BUSINESS AND COUNCIL ENGAGEMENT 2. Integrate Council and Business Community Into Economic Development Create a Hybrid Model of Economic Development Service Delivery by creating an Advisory Committee: To whom EDT Staff report on activities Which provide strategic direction on economic development matters and support the municipal efforts in marketing and business attraction activities That includes representation from Council, business leaders and the GEBC and key County Staff. That participates with EDT Staff in business attraction efforts Explore the possibility of co-locating GEBC functions and County EDT functions along with Provincial Business Development functions.
41 KEY PRIORITIES MOVING FORWARD BETTER BUSINESS AND COUNCIL ENGAGEMENT 3. Strategic Tourism Marketing and Development Develop Proactive Targeted Marketing Programs for Key Sectors Create linkage programs between individual operators Facilitate the creation of a self-supporting Tourism Umbrella Organization Develop a program to enhance recognition, reputation and brand of the County for visitors Identify any key missing tourism infrastructure pieces missing.
42 2016 GETTING STARTED Need to retain outside help to: Define the details within the key strategic areas what, who and most importantly how Take a look at the organizational structure to see if it aligns with where we want to go Set up governance structure Review resources and make recommendations for any change. Identification of key metrics that can be used for tracking and demonstrated success $75,000
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