Town of Richmond Hill Economic Development Strategy Update

Transcription

1 Town of Richmond Hill Economic Development Strategy Update January 2017 Final Report

2 Table of Contents Executive Summary 1 1 Introduction Objectives and Outcomes Strategic Plan Process Aligning our Economic Development Efforts Financial and Budget Implications Notes on Data 6 2 A Changing Economic Development Landscape Assessing our Current Conditions Regional Business and Investment Attraction Efforts An Expanding Innovation Ecosystem An Integrated Approach to Economic Development 15 3 Building on the 2010 Economic Development Strategy Major Successes Current Economic Development Program Business and Community Input into the Strategy Update 20 4 Strategic Directions Continued Support for the Entrepreneurial and Small Business Economy Expand the Opportunities for Creative Industries Support the Growth of Target Industries Expand the Town s Economic Development Function Foster Stronger Partnerships and Outreach Opportunities Action Plan Vision Goals and Objectives Action Plan 29 Appendix A: Current Context 46 Appendix B: Business and Community Consultation Results 73 MDB Insight: Town of Richmond Hill Economic Development Strategy Update i

3 Executive Summary The 2010 Economic Development Strategy was the Town of Richmond Hill s first comprehensive economic development strategy and provided needed direction to the Town s economic and business development efforts. Intended as a 10 year strategy, it is being updated to ensure that it reflects the current needs and aspirations of the community and the changing economic development landscape of the GTA and the province more generally. With structural changes in industrial development evident across the region; with population and employment growth expectations to meet over the next decade that will change the character of the community; and with a finite supply of employment land that must accommodate future growth and reflect the growing market demand for more office style development, it is considered timely to conduct a review of the goals and objectives that underpin the strategy to ensure the continued growth of the economy. While the implementation of the 2010 Strategy has been successful, new opportunities and challenges have emerged, which if not addressed could impact the Town s long term economic growth. This includes advancing the Civic Precinct and development of the village core to enable opportunities for higher density residential, office, destination retail and public spaces; introducing Smart City concepts through broadband investments in municipal, utility, school, healthcare and business offices to improve the connectivity and drive greater levels of innovation and productivity across the community; addressing the widening gap in the Town s tax assessment ratios, calls for re-investment and intensification of the Town s older business parks as a way to achieve higher employment densities and attract greater levels of private investment; and building out of the local innovation ecosystem and partnering with the innovation influencers to create spaces that promote collective thinking and technology adoption that benefits both residents and businesses. Each of these opportunities and challenges will require a comprehensive and integrated approach that includes effective inter-department cooperation and collaboration. It will also require effective partnerships with York Region departments, regional innovation organizations, and local business leaders. Continuing leadership from Economic Development to drive these opportunities forward will have a defining impact on the community over the long term. It is also essential that these efforts are appropriately messaged and communicated both locally and regionally to demonstrate the long term vision for the community, as well as the economic development opportunity in Richmond Hill. Given the importance of securing broad-based support for The Economic Development Strategy, a consultation process was essential. One-on-one interviews were conducted with business and community leaders, senior staff within the Town administration, Economic Development personnel and elected officials. These discussions provided insight into the effectiveness and limitations of the Town s economic development agenda, issues with the its land use and policy framework, as well as changes to the MDB Insight: Town of Richmond Hill Economic Development Strategy Update 1

4 community s socio-economic profile where there may be an impact on economic growth. Additional input was provided by the Town s Business Leadership Council at the visioning and key findings phase of the Plan s update. The major themes to emerge in the context of updating the plan include: Continued support for the entrepreneurial and small business economy Expand the opportunities for creative industries Support the growth of target industries Expand the Town s economic development function Foster stronger partnerships and outreach opportunities The revised Economic Development Strategy is underpinned by four high level goals, intended to anchor and qualify all strategic initiatives or ensuing actions on the part of the Town. These goals support the Town s overarching vision as stated in the Town s Strategic Plan and remain relevant in the context of the local economy and input from key stakeholders. For the purpose of the Strategy Update the goals have been adapted slightly to reflect the outcomes of the review process including stakeholder input. The four goals and objectives for the Town of Richmond Hill s updated Economic Development Strategy Update are: Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Be the Creative Centre of York Region by providing a business environment and quality of place experience that distinguishes it as the GTA s most liveable community. Goal 3: Enable the growth of technology-based business and industry Objective Broaden and build the local business base by further investing in business retention and expansion and support programs and services. Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. A detailed action plan in support of this framework is provided in Section 5. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 2

5 1 Introduction Richmond Hill s economic development profile continues to be a success story. The Town has emerged as an urban growth centre in the Greater Toronto Area (GTA) and a focus for high value investment, high density employment centres and regional and provincial transit infrastructure. The Town continues to experience rapid population growth driven in part by the Town s proximity and accessibility to the City of Toronto and the broader economic growth that has happened across York Region in recent years. This has been supported by strong local marketing initiatives, ongoing efforts to engage with and support the needs of local business, and investment in activities and economic development programming that delivers value to the broader business and stakeholder community. Over the coming years the Town is expected to become a more urban community as vacant development areas are built out and more emphasis is placed on the redevelopment and intensification of the Town s core, as well as its major corridors and business parks a major consideration for economic development in the community moving forward. In addition, the Richmond Hill Centre is one of four urban growth centres in York Region and represents part of the foundation of the Region s future urban structure and a key location for intensification, retail, office development, institutional and cultural facilities, services and activities. The 2010 Economic Development Strategy was the Town of Richmond Hill s first comprehensive economic development strategy and provided needed direction to the Town s economic and business development efforts. Intended as a 10 year strategy, it is being updated to ensure that it reflects the current needs and aspirations of the community and the changing economic development landscape of the GTA and the province more generally. With structural changes in industrial development evident across the region as it moves from a goods producing economy (manufacturing) to one more focused on goods movement (logistics and warehousing) and service industries (professional, technical and scientific services); with population and employment growth expectations to meet over the next decade that will change the character of the community; and with a finite supply of employment land that must accommodate future growth and reflect the growing market demand for more office style development, it is considered timely to conduct a review of the goals and objectives that underpin the strategy to ensure the continued growth of the economy. 1.1 Objectives and Outcomes The Town of Richmond Hill has acknowledged the fundamental shift that is occurring in the community as it moves from a suburban community to a more urban city environment. Building and supporting this new kind of urban community is at the core of the Town s 2009 Strategic Plan, as well as its Official Plan and Cultural Plan. Other key plans and strategies have also aligned with the vision and goals articulated in the plan. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 3

6 To this end the 2010 Economic Development Strategy and the subsequent update to the Strategy and Action Plan are guided by the following outcomes from the Town s Strategic Plan: Develop and advance an Economic Development Strategy to better market Richmond Hill. Encourage and attract more wealth-creating jobs in the employment corridor between Leslie Street and Hwy 404. Facilitate business development along Yonge Street (e.g. Richmond Hill Centre, Downtown, and Oak Ridges). Better understand and support the requirements of businesses. In direct reference to these outcomes, the 2010 Strategy created a strong foundation for economic development in the Town, emphasized the importance of regular engagement with the business community and suggested an approach to the marketing of the community that would both raise the profile of the community and target the growth of high value sectors of the economy. 1.2 Strategic Plan Process The current Economic Development Strategy established a roadmap to achieve the Town s long term vision of economic development built around four primary objectives: 1. Be a regional centre for small business support and innovation, which drives SME growth and entrepreneurship in the community. 2. Be the creative centre of York Region by providing a business environment and a quality of place experience that distinguishes it as the Greater Toronto Area s (GTA) most liveable community. 3. Attract business and industry that will sustain and grow our local economy by focusing on creative and technology based business and industry. 4. Deliver a best in class approach to economic development based on engagement with business leaders and a brand which identifies Richmond Hill as a premier business location in the GTA. With six years of implementation complete, there is a need to update the Strategy to reflect the evolution of economic development programming and services in the Town, the current priorities and expectations of business, local government, and the community, while continuing to build on the success and momentum of the original Strategy. This has been achieved by: Providing an assessment of the Town s current economic, social and demographic conditions, Identifying regional business and investment attraction efforts and the expanding innovation ecosystem and the impacts that it brings to the Town s economic development functions, MDB Insight: Town of Richmond Hill Economic Development Strategy Update 4

7 Engaging and consulting with a range of key stakeholders including members of the Business Leadership Council around their priorities for economic development, Reviewing and evaluating the 2010 Strategy against key findings to determine new goals and actions to further enhance the Town s competitive position and economic development program, Providing strategic directions that inform an update of the economic development strategy s Action Plan. Figure 1 illustrates the strategic planning process. Figure 1: The Economic Development Strategy Update Process Phase 1 - Where Are We Now Background Review Economic Analysis Phase 2 - Where Do We Want To Go Comparative Analysis Stakeholder Input SOAR Assessment Strategic Priorities Phase 3 - How Do We Get There Vision Statement Action Plan Performance Metrics 1.3 Aligning our Economic Development Efforts The Economic Development Strategy is premised on a vision of sustained economic growth built on innovation, investment, entrepreneurship, creativity, and quality of place. Despite the successful implementation of the Strategy to date, Richmond Hill has a number of opportunities and challenges, which if not addressed could impact the Town s long term economic growth. This includes advancing the Civic Precinct and development of the village core to enable opportunities for higher density residential, MDB Insight: Town of Richmond Hill Economic Development Strategy Update 5

8 office, destination retail and public spaces; introducing Smart City concepts through broadband investments in municipal, utility, school, healthcare and business offices to improve the connectivity and drive greater levels of innovation and productivity across the community; addressing the potential widening gap in the Town s tax assessment ratios and calls for re-investment and intensification of the Town s older business parks as a way to achieve higher employment densities and attract greater levels of private investment; and building out of the local innovation ecosystem and partnering with the innovation influencers to create spaces that promote collective thinking and technology adoption that benefits both residents and businesses. Each of these opportunities and challenges will require a comprehensive and integrated approach that includes effective inter-department cooperation and collaboration. It will also require effective partnerships with York Region departments, regional innovation organizations, and local business leaders. Continuing leadership from Economic Development to drive these opportunities forward will have a defining impact on the community over the long term. It is also essential that these efforts are appropriately messaged and communicated both locally and regionally to demonstrate the long term vision for the community, as well as the economic development opportunity in Richmond Hill. 1.4 Financial and Budget Implications The 2016 update to the Richmond Hill Economic Development Strategy builds on the results of the 2010 Economic Development Strategy and reflects on ongoing initiatives or actions. The resulting Action Plan is intended as a high level plan focused on the growth of the local economy over the remaining 4 year period of the plan. It does not include specific financial cost estimates for individual projects or actions. Funding implications related to the recommendations in this report will be developed by staff in the future. It must be noted that direct investments in economic development will be the foundation for the long term sustainability and resilience in the local economy. 1.5 Notes on Data In completing this report, MDB Insight has made use of the 2011 and 2006 Census and National Household Survey information for Town of Richmond Hill and the Province of Ontario, as well as 2008, 2013, 2014, 2015, 2016 business pattern data obtained from Statistics Canada. Additionally, business license data, York Region and Emsi economic modelling projections 1 were used to supplement and add to the current context. Every effort has been made to incorporate the most current and relevant data available. 1 Emsi is an economic modelling projection firm that currently provides the Province of Ontario access to its Analyst: Labour Market Analytics tool. Through the Province, the Town of Richmond Hill has been granted access to the Emsi Analyst software. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 6

9 2 A Changing Economic Development Landscape 2.1 Assessing our Current Conditions Population and Workforce Growth Based on current forecasts, the population of Richmond Hill is expected to increase from 208,700 in 2016 to 277,900 by Figure 2: Current and Projected Population Growth Rates, , Preferred Growth Scenario, York Region Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight While the pace of growth has slowed somewhat since the development of the strategy in 2010, this still represents a growth rate of over 33%. Given the availability of greenfield development opportunities in the community, this rate of growth will demand higher density development along the Town s major corridors and in the centres. Based on these projections the Town will comprise approximately 18% of the region s population by The Town s population continues to be dominated by the younger cohorts with a median age of 39.8 (2011) making it one of Ontario s youngest communities. This trend is expected to continue over the next decade although projections suggest the Town will see an increase in the older cohorts retirees (65-69) and older seniors (70+) which MDB Insight: Town of Richmond Hill Economic Development Strategy Update 7

10 may have implications for future housing needs, accessibility, and related community services and programming. The strong rate of population growth has also equated to strong employment growth. In 2016, Richmond Hill had a local workforce of 86,734. Based on current forecasts, the Town s workforce is expected to increase an additional 58% by 2041 (Preferred Growth Scenario provided by York Region - Figure 3). Figure 3: Current and Projected Employment Growth Rates, , Preferred Growth Scenario, York Region Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight Given the integrated nature of the regional economy, it can be assumed that a proportion of these residents will be employed in Richmond Hill and surrounding municipalities. With the limited supply of available employment land coupled with the market demand for office development and converted industrial space, it can also be assumed that a proportion of the local employment will be in the form of higher density development along the Town s major corridors and in its centres and business parks A Commuting Workforce An examination of labour flow patterns confirms that Richmond Hill continues to experience a significant outflow of workers by comparison to surrounding communities. While some of this may be beyond the ability of the Town to control, the community has over 30,000 workers commuting to jobs in surrounding municipalities suggesting a lack of local job opportunities. This can be attributed in part to the lack of available employment land relative to surrounding communities. Richmond Hill saw the greatest export of workers in finance and business services occupations (credit and insurance industries workers) and creative cultural and professional, scientific and technical occupations (architects, engineers, and post-secondary workers). These patterns support anecdotal evidence that skilled workers choose to live in Richmond Hill because of the quality of life it affords, regardless of where they may choose to work. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 8

11 2.1.3 Business and Industry Performance As with most Canadian communities, Richmond Hill s economy is characterized by small business operations that employ less than 10 people. While 85% of the 9,012 businesses fall into this category, in recent years the Town has seen an increase in the number of businesses employing more than 50 people, primarily through expansions in the Finance and Insurance sectors. Currently, professional, scientific, and technical service firms comprise the largest number of business in the Town (2,018 or 22%) followed by healthcare and social assistance service firms (832), retail trade operations (796), and construction firms (774). Richmond Hill has seen positive business growth over the last five years and an increase of 73 new businesses over the last twelve months. When evaluating the recent performance of Richmond Hill s target sectors, all but the finance and insurance sector has experienced an increase in local employment opportunities over the past decade. The financial services sector was significantly impacted by the 2009 downturn in the economy as evidenced by the 9% drop in the number of jobs in Richmond Hill. This trend is expected to persist as the sector continues to restructure and centralize operations. In contrast, health industries, culture, information and design sectors saw increases in employment of 16%, 9%, and 12%, respectively and are expected to continue to grow in Richmond Hill and across the GTA. The most significant growth for Richmond Hill has been in the professional, scientific and technical services sector, which has seen jobs increase by 62% over the last 10 years Employment Land Considerations With population and employment growth expected to continue, it is essential that the Town provide for an adequate future supply of employment land. As of 2016, Richmond Hill s business parks are at 82% capacity. The Headford Business Park currently comprises the most vacant land, while the Barker Business Park, Newkirk Business Park and Beaver Creek Business Park are at or near capacity. In total the Town has 291 acres of vacant land within its business parks, which presents a challenge for the Town when forecasted employment growth anticipates that the Town s employment base will grow an additional 40,000 jobs by Advancing employment opportunities within the Richmond Hill Centre and other centres and corridor developments will be important to accommodate that gap. As with many GTA communities, much of the employment land inventory is in private ownership, putting it at risk of being development for something other than commercial office or industrial development. The Town has been proactive in protecting the current inventory of employment lands and in enabling the timely development or redevelopment of these lands. Having completed an Official Plan update, the Town is also completing a comprehensive review of its zoning by-laws. The review aims to strengthen the long term sustainability of the Town s employment lands. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 9

12 2.1.5 Tax Assessment Ratios 2016 saw a further shift of the tax burden to the Town s residential properties % in 2015 to 87.93% in The current residential tax burden places Richmond Hill among the highest in York Region. Based on current projections, this ratio is set to decline further over the next 4 years (Figure 4). Figure 4: Distribution of Tax Assessment, , with estimates Source: Town of Richmond Hill Finance Department, 2016 Notwithstanding the Town s ability to increase residential tax assessment, the Town is limited in its ability to grow its non-residential tax assessment, as discussed earlier, which has implications for the community s long term competitiveness. The Town has a finite supply of greenfield development opportunities and the Oak Ridges Moraine Conservation Plan constrains development in the northern portion of the Town. The preservation and intensification of employment lands will be an important consideration for the Town s future economic growth. Ensuring strong employment area land use policies and zoning, providing an effective development review process, and supporting intensification and re-investment in the Town s business parks should contribute to a stronger economy over the long term. The current economic context has revealed an exciting picture of growth in Richmond Hill. The Town is on par with and in certain circumstances exceeding other York Region communities in terms of its economic performance. A more detailed assessment of socio-economic indicators can be found in Appendix A. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 10

13 2.2 Regional Business and Investment Attraction Efforts As a regional service centre and a growing urban hub in the Greater Toronto Area, the Town of Richmond Hill plays an intrinsic role in the growth and development of the York Region economy. As part of the 2010 Economic Development Strategy, Richmond Hill committed itself to fostering an environment that enables the growth of the suburban office market, supports the development and retention of a region-wide workforce by deploying business and labour market information to inform and develop local and regional support programs and the introduction of networks and communications that connect people, goods, and services beyond its jurisdictional borders. The Town has been a strong advocate for regional economic programs that support its economic development mandate. Three regional economic development initiatives in particular are seen as providing support for Richmond Hill s current and emerging economic development agenda: York Region Broadband Strategy, York Region Office Attraction Strategy, and Toronto Global York Region Broadband Strategy The vision for the Region s Broadband Strategy is to establish York Region as a Gigabit Region, recognized for its leadership in fostering an eco-system of collaboration and business innovation within a connected lifestyle community. The Strategy is focused on improving connectivity and broadband infrastructure in employment lands, centres and corridors. Improving broadband access across the Region requires a multi-faceted approach and ongoing work with many partners and stakeholders. The Region is working with its municipal partners around a variety of practical and low-cost actions such as engaging the development community to ensure low-cost high-speed connectivity is available in all their new developments. Other actions focus on improving municipal approval processes and taking advantage of municipal investments in infrastructure such as leveraging road re-construction projects to install fibre conduit that can be leased to telecommunications companies serving residents and businesses. The implementation of the Broadband Strategy will contribute to the Region s and the Town s long term competitiveness, as it relates to the attraction and retention of its high growth sectors. It would also allow Richmond Hill to advance Smart City 2 concepts as it relates to the deployment of technology solutions in the efficient management of 2 Smart City: A smart city is an urban development vision to integrate multiple information and communication technology (ICT) and Internet of Things (IoT) solutions in a secure fashion to manage a city's assets the city's assets include, but are not limited to, local departments' information systems, schools, libraries, transportation systems, hospitals, power plants, water supply networks, waste management, law enforcement, and other community services. The goal of building a smart city is to improve quality of life by using urban informatics and technology to improve the efficiency of services and meet residents' needs. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 11

14 municipal assets, community services (e.g. Digital Mainstreet) and the public realm. Having hyper-fast connectivity across the entire administration, sensor arrays that monitor municipal infrastructure and collects data in real time to improve efficiency, and online services and mobile apps that support more responsive services not only ensures open and effective local government but also the Town s competitive position in the Region over the long term. The Broadband Strategy is focused on introducing the last mile of service and providing anchors for expanding connections that enable initiatives such as maker spaces or virtual connections between businesses, the innovation network and MUSH sector York Region Office Attraction Strategy The Region s population and employment growth projections call for a significant increase in major office jobs in the region and more than double the number of office jobs that were counted in The attraction, retention and growth of jobs is a key element of the Region s economic agenda, with office jobs comprising many of the high growth sectors such as information technology, financial services, and creative industries, the same sectors that are driving growth in Richmond Hill. The York Region Office Attraction Strategy and the Region s Economic Development Action Plan highlight the importance of having the Region s centres and corridors support the concentration of commercial office development. These strategies also recognize that to reach intensification targets for employment, centres and corridors across the region must become economic hubs, as they have the potential to host the highest concentration of major office, mixed-use commercial and high-density residential uses. They also have the ability to better leverage the planned urban form, transit-oriented and live-work environment that is attractive to a young, highly-skilled workforce. A range of potential policy initiatives were identified as part of the strategy, with the primary policy vehicle for facilitating local and regional incentives being the introduction of Community Improvement Plans for specific locations where office investment is desired. The Town of Richmond Hill has been proactive in this regard with a community improvement plan due to be completed in 2017 and an office incentives study completed in The Region is currently rolling out the YorkLink campaign which is designed to reach out to businesses across the GTA, Canada and abroad to attract innovators, job creators and entrepreneurs to York Region. The campaign promotes local municipalities, including the availability of current office space, available shared office space, and business advantages. The successful implementation of the Region s Office Attraction Strategy has considerable upsides for the Town of Richmond Hill. It provides support to the Town s efforts to transition from industrial-format buildings to more office style development within its business parks. It also supports the Town s market positioning as a regional office node. The information collected and shared with the YorkLink campaign will also ensure an accurate inventory of available office space / shared office space that can be promoted on all municipal platforms. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 12

15 2.2.3 Toronto Global Encouraging Foreign Direct Investment (FDI) is probably the single most frequently used international strategy by local and regional authorities to further local economic development. In 2013, after the completion of the Greater Toronto Marketing Alliance Roadmap to Revitalization a recommendation was put forward to the City of Toronto and surrounding regional municipalities for a new regional agency that would focus on FDI activities. The recommendation has now been approved and is moving forward. 3 The creation of Toronto Global, involved the Cities of Toronto, Mississauga, Brampton, and Caledon; the Regions of Halton, York, and Durham; the Province of Ontario; and the Government of Canada. As part of the initiative, the Province has committed a three year $7.5 million ($2.5 million annual) 4 contribution along with a potential matching commitment from the Federal government 5. The Province has provided $730,000 in seed funding for start-up costs and to help build consensus on Toronto Global's strategic priorities and operational model. 6 The interim CEO of Toronto Global has convened and chaired regular meetings of a working group comprised of Economic Development Officers from the funding municipalities to advance these activities. Key to Toronto Global s success will be the cooperation, collaboration, and transparency of values that underpin the relationship between Toronto Global and the funding municipalities. These regional investment attraction efforts will supplement the municipal program and will hopefully lead to some positive results for Richmond Hill. Staff will need to provide local information and market intelligence to Toronto Global to support their efforts moving forward. 2.3 An Expanding Innovation Ecosystem Fostering an innovation ecosystem in York Region, and Richmond Hill more specifically is a work in progress. The Region as a whole is challenged by the lack of profile associated with the level of research and innovation that is ongoing, and the level of innovation support that exists in its institutions and business community. Municipalities are also hampered in their business attraction and retention efforts by the lack of information as it relates to availability and specialized capabilities of the local/regional workforce. While many of the Region s municipalities are focused on growing similar high value sectors, the networks or ecosystem that supports this growth are often not well connected across municipalities which can hinder the Region s competitive advantage in some sectors. In Richmond Hill the innovation ecosystem is supported by a regional innovation centre (venturelab), the provincially funded Richmond Hill Small Business Enterprise Centre 3 Update on the Creation of a Foreign Direct Investment Regional Agency, City of Toronto Staff Report, June 20, ibid 5 ibid 6 ibid MDB Insight: Town of Richmond Hill Economic Development Strategy Update 13

16 (SBEC), and a growing post-secondary presence. There is also an array of for-profit and not-for-profit organizations that operate in and around York Region that also supports entrepreneurial and innovative activity. This includes groups like TechConnex, YLab, Startup York, York Entrepreneurship Development Institute (York University) and Seneca Helix venturelab venturelab is the Region s provincially recognized Regional Innovation Centre (RIC). York Region provides venturelab with $100,000 in annual operating funding and holds a seat on the venturelab Board of Directors as a founding member. VentureLAB supports the commercialization of ideas with a focus on business driven research and results. It is designed to connect innovators, businesses, entrepreneurs and researchers with services and programs to help them innovate, gain a competitive advantage and scale to reach global markets. venturelab has been a partner in supporting the Town s economic development function primarily through the rollout of the health and life sciences summit MedEdge. venturelab is in the process of developing programs targeted at supporting technology and medical device companies to grow and scale more quickly Post-Secondary Influencers In 2015, the Province of Ontario announced the selection of the York University Markham Centre campus as part of its long term commitment to develop additional post-secondary campuses across the Province with enrollment due to begin by In addition to a new campus, York University has also developed a new Innovation Community-University Engagement (ICE) Hub. The ICE Hub provides access to support, mentorship, advice, and guidance in creating and developing ideas in a technology-enhanced learning environment to residents and businesses across the region. In partnership with venturelab, York University and Seneca College have also committed to enhancing the Innovation York office presence across the region. Innovation York is a unit that provides services to faculty members, trainees, students, industry, and the community in five service streams: agreements, industry liaison, knowledge mobilization, commercialization, and entrepreneurship. These new ventures will contribute to a growing network of support for technology based industries across the region Small Business Enterprise Centres Small Business Enterprise Centres were created by the Province and operate in partnership with municipalities to provide business advisory services and resources to individuals interested in entrepreneurship. In the case of the Richmond Hill SBEC, this is achieved through providing resources such as business plan reviews, convening MDB Insight: Town of Richmond Hill Economic Development Strategy Update 14

17 events, workshops and seminars of interest to entrepreneurs as well as administering programs such as the Summer Company, Starter Company and Starter Company Plus. All SBECs are funded by the Province and its municipal partners are mandated to deliver these types of services. The Richmond Hill SBEC is one of four in York Region and is currently supported by two contract Small Business Consultants that deliver programming. The Richmond Hill SBEC is part of the Economic Development function in Richmond Hill and has assisted in implementation of the Economic Development Strategy as it relates to small business support and innovation. Recently, the Province and SBECs announced two programs specifically designed at supporting scale-up and innovation for small businesses. The Scale-Up Voucher Program aims to provide a fast and flexible one-stop shop for companies seeking to remove barriers to their next stage of growth. The program will be used by companies to fund activities such as specialized talent development and recruitment, accessing new markets and intellectual property protection services. The program is also designed to provide support through matching grants and wrap-around services such as executivein-residence and executive peer-to-peer networks. The second program is the Small Business Innovation Challenge which provides smalland medium-sized businesses with opportunities to develop and implement innovative technology solutions to public sector challenges. The program, through real-world testing of products and solutions, allows companies to be better positioned to market their new ideas to the world and assist in fostering long-term economic growth. While the SBECs programming is fully funded by the Province of Ontario, these programs do require additional municipal investment. Across Ontario, the majority of SBECs are being further funded to enhance its ability to introduce extended programming into a community. For example, GTA-based SBECs have received municipal funding to support the development of target sector business advisory programs aimed at supporting the growth of small businesses. Richmond Hill s participation in these programs will be dependent on the commitment of resources and staffing. 2.4 An Integrated Approach to Economic Development With the urbanization that is underway in many of the GTA s former suburban communities, municipalities like Richmond Hill are under pressure to provide a modern urban environment that will support future population and employment growth. This includes the renewal of greyfield lands to accommodate more dense mixed use development, retrofitting the public realm to be more accessible; providing affordable and alternative transportation and living options and transforming major corridors into attractive urban neighbourhoods. Any successful economic development agenda must be administered with knowledge of the social, cultural, economic, environmental and geographic realities that shape a community. To do this effectively requires a higher level of collaboration between MDB Insight: Town of Richmond Hill Economic Development Strategy Update 15

18 Economic Development and the municipal departments responsible for creating the environment that will attract and retain business investment. While there are excellent examples of collaboration between Economic Development and the Planning Department (e.g. participation in the development of the Official Plan, Richmond Hill Centre Design and Land Use Study, Downtown Design and Land Use Study, collaborating on the Office Incentives Study and Downtown Vitality Action Plan, participation in the development of the Downtown Secondary Plan, circulation of development applications in the employment lands and implementation of the Cultural Plan), more can be done to ensure a two way understanding of the economic growth opportunities and challenges facing the community across a variety of departments (e.g. Community Services, Corporate and Financial Services etc.). This is particularly true around the protection and enhancement of employment lands, the long term viability of the Town s business parks, support for transit options, the further integration of cultural development with economic development, the deployment of incentives and the rebalancing of the tax assessment ratio. By approaching economic development as a corporate responsibility rather than simply the Economic Development Office s responsibility ensures a stronger business environment and greater economic growth potential over the long term. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 16

19 3 Building on the 2010 Economic Development Strategy Economic development in Richmond Hill is already a highly integrated effort touching on all aspects of community development. This has included support for other departmental initiatives such as cultural development, ongoing research, marketing, responding to site selector inquiries, connecting with the existing business community, as well as high potential businesses, hosting foreign businesses and incoming trade missions, leading trade missions for the business community, office attraction marketing, small business support and resources, job fairs, as well as major event hosting and support to the Town s Business Leadership Council. Based on the ongoing efforts of the Town, considerable progress has been made towards the four goals set out in the Economic Development Strategy (Figure 5). Figure 5: Goals and Outcomes from Economic Development Strategy Goal 1: Be a centre for small business support and innovation Objective Be a regional centre for small business support and innovation, which drives small and medium enterprise growth and entrepreneurship in the community. Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Richmond Hill will be the Creative Centre of York Region by providing a business environment and a quality of place experience that distinguishes it as the Greater Toronto Area s most livable community. Goal 3: Focus on creative technology-based business and industry Objective Attract business and industry that will sustain and grow our local economy by focusing on creative and technology-based business and industry. Goal 4: Engage business leaders and brand Richmond Hill Objective Deliver a best in class approach to economic development that is based on engagement with our business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. The discussion that follows highlights the major achievements associated with the implementation of the 2010 strategy. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 17

20 3.1 Major Successes Since the approval of the Economic Development Strategy in 2010, the Town has been aggressive in the implementation of the action items contained in the Plan. The Town has developed and implemented a marketing strategy that has focused on developing key messages for target sector audiences, created new marketing materials including a new website and community profile, social media accounts, and a direct mail program. Building on this effort the Town has also developed a variety of industry specific and award winning tools and resources that support the enhancement of business activity in Richmond Hill. This includes award winning sector brochures for each of its key target sectors (Finance and Insurance, Information and Culture, Health and Professional, Scientific and Technical Services) a Film Location Resource Guide and a Guide for New Businesses. The Town also acknowledges local creativity through its annual Creativity Connected Awards. The Town has also become more proactive in its efforts to engage the Town s business community and in its outreach to potential investors with an interest in Richmond Hill. In 2015 alone, the Town hosted international delegations from China, Israel, Italy, Brazil and the United States, with several foreign companies interested in establishing Canadian relationships. In 2016, the Mayor led a mission to Israel. The Town also expanded its corporate calling program to eighty businesses in 2015, up from sixty-five the year before. A Business Leadership Council (BLC) was established in 2011 and recently expanded to provide for a greater business and stakeholder presence. The objective of the Business Leadership Council, which is unique among the York Region communities, is to provide insight and advice on the implementation of the Economic Development Strategy to Council and Economic Development staff. The insight provided is seen as a valuable element to understanding how to support the growth of the Town s business community. Richmond Hill has developed a strong reputation as a host for events aimed at developing the Town s and the Region s creative industries and health and life sciences sectors. The Town hosts two premier industry summits every year, MedEdge and the Creative Industries Symposium that attract hundreds of people from across York Region and beyond. MedEdge, York Region s premier Health and Life Sciences Business Summit gives industry professionals the opportunity to meet with area businesses and entrepreneurs, government agencies and key partners in Ontario s health sector and to learn about the gaps and opportunities in Ontario s medical technology industry. The Town s Creative Industries Symposium explores the uniqueness of York Region s creative businesses and talent. The Symposium provides an opportunity for open dialogue and focuses on building networks to develop new ideas, partnerships and collaboration that will support the growth of creative industries across the local and regional economy. With the growing demand for office development in York Region and Richmond Hill, the Town has placed considerable emphasis on improving the local market conditions for office development along its major corridors and in its business parks. The limited MDB Insight: Town of Richmond Hill Economic Development Strategy Update 18

21 availability of office space is not unique to Richmond Hill as the GTA industrial and office market continues to set new records for low availability. 7 In response Richmond Hill s Council approved an Office Incentives Study that detailed a series of incentives aimed to encourage and attract various forms of office development to the Town. Some of these incentives include a vacancy rebate program, methods of development charge deferral and an immediate request to implement a community improvement plan (currently underway) to enact additional incentives such as a tax increment equivalent grant program. With the completion of the CIP, Economic Development is well placed to promote the outcomes of the Office Incentives Study and CIP through its regular engagement with the business community, its corporate calling program as well as its broader marketing efforts. The Town has also approved the relocating of the Town Hall and creating new community amenities in the downtown. This decision will enable Town-owned land at the southwest corner of Yonge Street and Major Mackenzie Drive, known as the Civic Precinct, to be developed as an all-season community space with a new municipal office, an expanded Central Library and public gathering areas for the community. The development is seen as an additional catalyst to continue encouraging investment in the downtown, particularly as it relates to residential and office development. 3.2 Current Economic Development Program The focus of economic development in Richmond Hill is business retention and attraction, as well as support for small business. Since the approval of the 2010 Strategy, staff has been building this function and have created a solid foundation for economic development on which new programs and activities can be built. Richmond Hill continues to deliver award winning industry summits (Creative Industries Symposium and MedEdge) as evidenced by the attendance at the 2016 events. The summits are well planned and require considerable effort to ensure content is relevant for new and returning attendees. The summits are a pillar for interactions between the business community and Economic Development staff. The summits also supplement the business retention and attraction activities that take place. The Town has also invested in corporate calling program software that can be leveraged to provide a better understanding of the local business environment. In addition to the corporate calling program, Council and staff regularly engage the BLC to solicit input on ongoing business challenges and attraction opportunities. Economic Development staff, through the Small Business Enterprise Centre, provides resources to the Town s small business community. In 2016, the SBEC convened 47 seminars, had 15 Summer Company students and 124 applicants for the Starter Company program, with 39 applicants receiving grants. This has contributed to the SBEC s ability to partner with the business community on key events that support small business and entrepreneurial growth. Strengthened linkages to the business ecosystem 7 Cushman & Wakefield, 2016, Greater Toronto Area Office Snapshot MDB Insight: Town of Richmond Hill Economic Development Strategy Update 19

22 in York Region through regional partners such as venturelab, has also expanded youth entrepreneurship programming through the administration of the Summer Company, Starter Company and Starter Company Plus programs. Working with newcomer and immigrant organizations to increase awareness regarding the SBEC s resources and programs has also led to improved uptake. Economic Development Staff have also supported efforts to protect and preserve the Town s employment lands. With Newkirk Business Park being at capacity, and Beaver Creek Business Park about to reach capacity, the focus of late has been to direct new development to the Barker and Headford Business Parks, as well as Richmond Hill Centre and other centres and corridors. Economic Development staff supports these efforts through the marketing of these areas as potential business locations using current business park profiles and land inventory information. Economic Development Staff continues to support the rollout of the Economic Development sector strategy and marketing strategy. A recent update to the municipal website has allowed the Town to create new materials to promote its sectors and resources for business development. The Town has built an arsenal of web 2.0 tools, including an Economic Development Social Media Strategy which has helped to grow the Office s online presence on Twitter, Facebook, LinkedIn, YouTube and Flickr. Annual research is completed to ensure that these tools (or any new tools) are still relevant and provide a return on the investment to the Town. Economic Development staff collaborate with Regional economic development staff on economic initiatives that benefit Richmond Hill. Innovation is also supported through partnerships with venturelab, York University, Tech-Connex and Life Sciences Ontario that enable Economic Development to connect local businesses to start up and scale up resources. The demands of the current economic development program require significant time and commitment by economic development staff. Additional resources will be required to support the development of the Town s economic development program and assist with capacity issues. A business case for a Manager, Economic Development will be considered by Council during the 2017 Operating Budget process. Should Council approve this position, its prime responsibility will be to assist the Director in leading the implementation of the Economic Development Strategy and the development of related economic development programs and services. 3.3 Business and Community Input into the Strategy Update As with the strategy development in 2010, consultation with business and community stakeholders was conducted to ensure support for the Town s economic development agenda. One on one interviews and small group discussions were conducted through the summer and fall of This included business leaders, local community organizations, government agencies, economic development partners and elected officials and senior staff from the Town. A business survey was distributed to the MDB Insight: Town of Richmond Hill Economic Development Strategy Update 20

23 business community to gather further information on perceptions and attitudes towards Richmond Hill s business climate and the consulting team has met with the BLC to gather their input to the planning process. In total more than 120 businesses and community members provided input through the consultation process. Key themes that emerged from the consultation process in 2016 include: Develop a greater storefront presence for economic development and small business services. This includes better promotion and visibility of economic development programs available to small businesses and newcomer and immigrant communities. Address the demand for affordable and flexible workspace options in the Region and in Richmond Hill. This includes needing to better promote and showcase current affordable workspace options available in Richmond Hill. Advocate for a larger stock of new and flexible office space options. Concerns were raised around the aging inventory of buildings and the challenge of finding suitable vacant office space. Continue to engage with the Town s immigrant communities, particularly its entrepreneurs and culture specific business associations. Ensure the Town s marketing strategy reflects the long term vision for the community. Provide clarity around the Town s identity and create a value proposition that appeals to future residents, businesses and investors. Support, invest and expand the Town s small business entrepreneurial development programs. Particular interest was expressed in supporting and encouraging businesses that are export ready to scale up operations. Results of the business and community consultation can be viewed in more detail in Appendix B. Included is an assessment of the Town s strengths, opportunities, aspirations and results towards economic growth and the results of the business community survey. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 21

24 4 Strategic Directions Drawing on research findings and the results of the stakeholder engagement process, a number of broad themes have emerged during the update of the Strategy that have a direct bearing on the Town s economic development agenda. 4.1 Continued Support for the Entrepreneurial and Small Business Economy Given the predominance of small business and entrepreneurs in the community and the importance of these businesses to the Town s future economic growth, it is essential that the Town continue to support related retention and expansion opportunities. Although Richmond Hill s SBEC has increased its programming support for small business, the recent consultation process suggests that the SBEC struggles to maintain a level of awareness across the business community, which has limited its ability to deliver programming and networking opportunities. Specifically, stakeholders suggested that the SBEC needs a stronger profile or presence in the community which could be accomplished by locating the function outside of Town Hall. It was suggested that a storefront or ground floor location would be more effective and enable more interaction between the business consultants and the community. As one of only four SBEC s in York Region, Richmond Hill s SBEC was often compared to the neighbouring SBECs. In particular, it was suggested that while the types of programs being offered are similar, having permanent rather than contract staff may contribute to better outcomes from available programming. The Town should give consideration to funding a fulltime position with the SBEC and supporting community outreach efforts to further raise the profile of the organization (e.g. pop-up locations) with the business and entrepreneurial community. 4.2 Expand the Opportunities for Creative Industries The 2010 Strategy and the subsequent industry sector profiles defined creative industries as information and cultural businesses. While this provided a framework for evaluating the performance of the sector it no longer reflects the growing range of creative workers in Richmond Hill. Nor does it account for the needs of information and specialized design businesses that dominate this sector. While both sectors continue to attract workers to Richmond Hill, recent data suggests only minimum job growth is occurring in cultural businesses, while information and design businesses have expanded significantly. Given the predominance of support for the growth of these types of jobs in York Region, improved programming, business support and market intelligence for this sector is required. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 22

25 A strong innovation ecosystem is also essential to the growth of creative industries. The consultation process highlighted the efforts of regional innovation networks that are supporting start-up development across York Region. Stakeholders point to venturelab which has 47% of its Richmond Hill program registrants identified as a creative business, and Innovation York that has recently opened an Innovation Community- University Engagement Hub in Markham to connect York University students and their ideas with industries across the region. It is important for Richmond Hill to stay connected and involved with these networks if they are to foster a local innovation environment that will attract and retain both workers and business investment. An important consideration in supporting the growth of a local innovation network will be to ensure that the Town does not duplicate the investment that has been made elsewhere in the region but rather look to add to the innovation ecosystem that already exists. Program support for high growth businesses looking to scale up their operations, opportunities for co-op workspaces, maker spaces or studio space will better position Richmond Hill as a technology hub than trying to build an incubator or accelerator. Additionally, creative industries and workers are attracted to an environment that is grounded in the interaction of place. Specifically, they are attracted to environments that allow individuals to share experiences and ideas. Public spaces are a key contributor to creating a sense of place and rich pedestrian environment in a community. Public spaces activate and give authenticity to the public realm while helping to build a dynamic interface for workers and residents. The Town should give consideration to creating, encouraging and enabling (policies) these spaces in employment areas in order to enrich the creativity and innovation process. It also addresses physical space desires that many creative professionals have, leading to the attraction and retention of human capital in the creative industries. 4.3 Support the Growth of Target Industries The 2010 Strategy identified four target sectors for Richmond Hill based on economic growth potential and while significant strides have been made with these sectors, including the development of industry profiles and industry specific events (Creative Industries Symposium and MedEdge), there is an increasing need across the region to provide enhanced support in the attraction and retention of investment in these sectors. In particular, the Region has developed an outreach strategy and campaign for the attraction of office development. Prior to launching this initiative, the Region underwent a mapping exercise to determine the innovation networks, businesses and skills that were present across the region. The Region has also undertaken key sector research that identified growth clusters, comparing the strengths and differences of the Region to Toronto, Durham and other GTA based communities. The result is a profile of the type of office development that would be best suited to the growth of the region s target sectors. Richmond Hill has also developed an office attraction program for its centres and corridors. The Town must continue to implement this initiative and give more attention and resources to the opportunities to attract office development to Richmond Hill, given MDB Insight: Town of Richmond Hill Economic Development Strategy Update 23

26 the fact that most of the Town s future employment will likely occur in office development rather than warehousing or manufacturing facilities. Currently, the Region is promoting the major corporate centres and corridors for office development and the Town needs to leverage this work for its benefit. While the Richmond Hill Centre represents an opportunity to create a significant office node, a focus on the redevelopment and intensification opportunities within existing business parks is also important. Newkirk Business Park in particular represents a unique opportunity to work with existing landowners to repurpose industrial style buildings as unique and flexible office space close to the downtown, with connections to regional and provincial transit infrastructure. The Town s recently approved Office Incentives Study is seen as a significant step forward in supporting office development across the community. The completion of a Community Improvement Plan will enable the use of incentives to encourage intensification and reinvestment in the Town s employment areas, as well as targeting of locations for office development. In addition to supporting the provision of physical space, the Town needs to consider how it can best support the scaling up of its small and medium sized enterprises (SMEs), particularly as it relates to sectors with high growth potential (which can emerge from any sector). According to the 2016 Ontario Chambers of Commerce Breaking Barriers Report, a gap exists in Ontario with respect to the supports for small business and entrepreneurs looking to scale up and grow their businesses past the concept, seed, and early stages of the business life cycle. Understanding that the SBEC will soon be mandated to introduce the Scale-Up Voucher program as a tool to support these businesses, Richmond Hill will need to give consideration on how to extend and convert the benefits of the program to local economic growth. In doing so, Richmond Hill will need to consider how to leverage what is already in place in the innovation and business support ecosystem in the area. For example, the consultation process highlighted Mackenzie Health s Innovation Unit as a prime example of introducing a transformative process to the modern day health sector. The Unit, described as a living and breathing laboratory, is a convergence of private and public sector investment from the medical and life sciences sector and technology sector that can act as a best practice in how other sectors can work collaboratively. 4.4 Expand the Town s Economic Development Function Throughout the consultation process in the 2010 strategy there was a clear message that the Town and by extension Economic Development needed to broaden its engagement with the existing business community and expand its overall marketing efforts. This continues to be a primary consideration in the 2016 update. While the existing economic development function is performing well, it is not being perceived as providing an enhanced level of returned investment as other comparable communities in the GTA. This perception could be a result of the Town s current resources and staffing capacity to deliver enhanced economic development functions. Notably, Markham and Vaughan have introduced economic development programs that MDB Insight: Town of Richmond Hill Economic Development Strategy Update 24

27 are highly visible and marketed. These include its Sister Cities agreements and related trade missions, innovative programs associated with its Markham Convergence Centre and Vaughan International Commercialization Centre, the integration of cultural services into their economic development departments to support creative placemaking 8, and match-making between local immigrant business associations and international business delegations. It was also suggested that Richmond Hill s Economic Development Office would benefit from greater visibility in the community. While stakeholders were quick to commend the efforts of the department, they have suggested that there needs to be a greater level of boosterism coming from Economic Development and the Town more generally. Stakeholders commented on the perceived success of the Business Leadership Council (BLC) and the forum it creates to share success stories and solicit direct feedback from business and community stakeholders. But while it was recognized for bringing the economic development function closer to the business community, it was also suggested that the BLC could be leveraged more effectively to address emerging economic development issues and opportunities as they arise. More opportunity for the Town to interact with local businesses was a common theme. The Town has developed great annual events that draw businesses from across the Region and the Toronto. However, the ideas and outcomes of these events often appear to be not promoted or nurtured in way that could enable further growth of the Town s key sectors. Given the success of these events, consideration should be given on how best to leverage them to attract/support additional business investment. Closer engagement with local businesses also provides Economic Development with a better understanding of how to market the community to business, beyond business costs and location. Throughout the consultation there was a concern with respect to the continued lack of awareness of Richmond Hill and many of the businesses contacted believed that Richmond Hill does not have a strong brand presence in the GTA. It was suggested that in addition to having staff attend more events, the Mayor and Members of Council should also have a higher profile. There was also considerable feedback on the new economic development website suggesting it still required a stronger connection to the Richmond Hill smart place for business brand. 4.5 Foster Stronger Partnerships and Outreach Opportunities While partnerships and outreach opportunities were certainly an outcome of implementing the 2010 Economic Development Strategy, stakeholders believe that more can be done to leverage these partnerships to create new opportunities that will 8 Placemaking is a multi-faceted approach to the planning, design and management of public spaces. Placemaking capitalizes on a local community's assets, inspiration, and potential, with the intention of creating public spaces that promote people's health, happiness, and well-being. It is political due to the nature of place identity. Placemaking is both a process and a philosophy ("What is Placemaking? Project for Public Spaces". Pps.org ) MDB Insight: Town of Richmond Hill Economic Development Strategy Update 25

28 drive greater programming and business support activities, as well as investment in the community. This is particularly relevant given the current fiscal environment and the changing nature and needs of the local business environment. There is considerable support for building stronger relationships with local business associations, particularly those that provide a window into the Town s ethnic communities. This includes a stronger relationship with business support organizations around the future of joint-initiatives such as MedEdge, support for start-up companies, the upscaling of local businesses to ensure the growth and retention of high growth, high value businesses and how these organizations can support the development of innovative systems (e.g. virtual connections, integration of smart grids, automated buildings, advanced sensors) in Richmond Hill. The Town should continue to build upon the relationships already in place with other regional innovative networks (TechConnex, YLab, and Innovation York). The consultation process also highlighted the value and impact that sister city relationships are providing neighbouring municipalities, as well as several of the comparative communities. Recently, the Town has entered into a twinning agreement with the City of Netanya, Israel. The hope of the new partnership is that it will facilitate the exchange of information and ideas and promote economic and business ties. A strong emphasis of the partnership is building upon the strong ties that existing Richmond Hill high-tech companies have with companies in Netanya, and encouraging new businesses in both communities. Building on this success, Richmond Hill is well positioned to continue fostering similar relationships with other local immigrant business associations such as Chinese, Iranian, Russian and Italian, and connect on the needs and desires of these communities, as well as opportunities for attracting new investment from these communities. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 26

29 Action Plan 5.1 Vision Richmond Hill s Strategic Plan, sets out a vision for the Town - a place where people come together to build our community. Building the community, now and in the future, requires a strong economy and the economic development strategy is one tool that can assist in strengthening the Town s economy over the long term. The vision for the Economic Development Strategy Update remains the same as in 2010: Sustained economic growth built on innovation, investment, entrepreneurship, creativity and quality of place. The Town must continue to work towards this vision of sustainable economic growth by effectively leveraging its strengths: excellent transportation connections and proximity to the City of Toronto; a strategic central location; a highly skilled and highly educated population; ethnic diversity; corporate support for economic development; a strong growth trajectory, and an emphasis on quality of life-quality of place for residents, visitors and business interests. 5.2 Goals and Objectives The current Strategy is underpinned by four high level goals, intended to anchor and qualify all strategic initiatives or ensuing actions on the part of the Town. These goals support the Town s overarching vision as stated in the Town s Strategic Plan and remain relevant in the context of the local economy and input from key stakeholders. For the purpose of the Strategy Update the goals have been adapted slightly to reflect the outcomes of the review process. The four goals and objectives for the Town of Richmond Hill s Economic Development Strategy Update are: Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Be the Creative Centre of York Region by providing a business environment and quality of place experience that distinguishes it as the GTA s most liveable community. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 27

30 Goal 3: Enable the growth of technology-based business and industry Objective Broaden and build the local business base by further investing in business retention and expansion and support programs and services. Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area Priority Timing It is anticipated that by Year 2020, each action in the strategy update will be underway. Priority timing for this update is identified as either Immediate (0-12 months), Short Term (1-3 years) or Long Term (3+ years). The partners identified are seen as having a role in the implementation of the select action in partnership with the Economic Development Office Performance Measures Each goal is paired with a series of quantitative and qualitative performance metrics. Quantitative metrics are goals that are measured by a statistic, while qualitative metrics are goals measured by observation and feedback without any statistics to pull from. These performance metrics are selected from a range of best practices on performance tracking across Economic Development offices across the country. Despite best practice research, it is recommended that Economic Development carefully consider each metric before its application. When introducing additional performance measures, Economic Development should consider the following criteria: Is there enough information to consistently inform this metric over time? Are there enough resources to consistently monitor the metric? Does the metric effectively demonstrate the success or failure of the action? If any of these questions cannot be answered with a definite yes than Economic Development should consider a different measure. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 28

31 5.3 Action Plan Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Action / Recommendation Priority Partners 1. Better leverage existing local and regional innovation influencers 9. A. Create a pilot virtual mentorship network for new businesses that will allow them to use an online interface to ask questions, discuss business support programs, and connect with existing businesses and organizations around their products, business plans and Richmond Hill experience. The mentorship network should invite local and regional innovative influencers, senior managers of emerging and mature companies and sector experts to guide the development of new businesses in Richmond Hill. For new businesses, the network is an opportunity to benefit from the experience of seasoned business professionals to overcome challenges, grow their business, improve themselves and their knowledge base, and to achieve business success. B. Support and encourage existing community spaces to become locations for collective thinking and technology adoptions. This includes introducing flexible makerspace 10 into libraries and municipal buildings. Short Term Short Term Economic Development Lead Local and regional innovative influencers; Senior managers of emerging and mature companies; Sector experts Economic Development Lead Library; YLab 9 Regional innovation influencers include organizations such as Seneca College, York University, Ryerson University, Tech-Connex, venturelab, YEDI, Futurepreneur, YLab, etc. 10 Makerspaces are places in which people with shared interests, especially in computing or technology, can gather to work on projects while sharing ideas, equipment, and knowledge. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 29

32 Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Action / Recommendation Priority Partners 2. Enhance the Small Business Enterprise Centre s programs and outreach activities to support local innovation. A. Fund the SBEC to provide for a permanent position to support the development of target sector programs and activities. Immediate Economic Development Lead B. Support the promotion of the SBEC by providing a mobile storefront presence in existing municipal facilities. Short Term Economic Development Lead Library, Performing Art Centre C. Invest in better promotion and visibility of SBEC programs through marketing materials, business networks and enhanced website content. Immediate Economic Development Lead Board of Trade D. Support the introduction of the Small Business Innovation Challenge Pilot Program to provide opportunities for businesses to demonstrate innovative technology solutions, positioning these firms for commercial success. Short Term Economic Development Lead YSBEC E. The SBEC to hold quarterly meetings with community partners to share ideas, resources and plan some programming together. Participants could include: the Welcome Centre, YMCA, various chambers, the RH Library. Immediate Economic Development Lead Welcome Centre; YMCA, Various chambers/board of trade; Library MDB Insight: Town of Richmond Hill Economic Development Strategy Update 30

33 Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Action / Recommendation Priority Partners 3. Advance the Town s broadband infrastructure through a formalized Smart City strategy. A. Develop a Smart City strategy as a tool for deploying technology solutions in the efficient management of municipal assets, community services and the public realm. Long Term Economic Development Support EIS, CAO A.1 Address the broadband needs of business, residents and public institutions in Richmond Hill by mapping the existing broadband network. A.2 Encourage multi-service ultra-high speed broadband infrastructure as part of any utility project A.3 Increase the provision of municipal services via digital platforms to residents and businesses (permits, taxes, 311, jobs) Immediate Economic Development Support EIS, CAO, York Region Immediate Economic Development Support York Region, Utility agencies Development Community Immediate Economic Development Support 4. Link scale-up programs to business opportunities. A. Support local and regional innovation influencers in developing programs that are aimed at supporting scale-up activities for high growth, high value sectors Short Term Economic Development Lead Local and regional innovation influencers MDB Insight: Town of Richmond Hill Economic Development Strategy Update 31

34 Goal 1: Foster an innovation ecosystem that supports business growth and investment Objective Be a regional centre for business support and innovation, which drives small and medium sized enterprise growth and entrepreneurship. Action / Recommendation Priority Partners B. Secure the resources to deliver and promote the Scale-Up Voucher Program in the SBEC to provide a fast and flexible one-stop shop for companies seeking to remove barriers to their next stage of growth. Give consideration on how to extend and convert the benefits of the program to a broader base of businesses. C. Produce a scale-up resource guide in conjunction with regional innovation influencers. Goal 1 Performance Measures Short Term Short Term Economic Development Lead Richmond Hill SBEC Economic Development Lead Local and regional innovation influencers Quantitative Total number of businesses accessing the Virtual Mentorship Network Total number of businesses supported throughout the year Total number of participants per SBEC program Qualitative Reputation as a good location for small and medium business growth Level of engagement with the business community Level of engagement with regional innovation influencers Feedback on Richmond Hill s fibre network Advancement of community spaces becoming locations for makerspaces MDB Insight: Town of Richmond Hill Economic Development Strategy Update 32

35 Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Be the Creative Centre of York Region by providing a business environment and quality of place experience that distinguishes it as the GTA s most liveable community. Action / Recommendation Priority Partners 5. Support the development of placemaking initiatives to create a vibrant working environment. A. Continue to support the implementation of the Cultural Plan objectives to develop creative places and spaces in Richmond Hill in a way that benefits the Town s business community. Immediate Economic Development Support Culture B. Mobilize public will for creative placemaking by promoting a creative brand that illustrates the Town s transformation into an urban municipality. C. Collaborate with culture staff to create a mash-up committee of cultural and technology-based entrepreneurs to spark creative revitalization ideas. Leverage participants from the Creative Industries Symposium. Short Term Short Term Economic Development Support Planning; Culture Economic Development Support Culture; Local businesses; Local creative entrepreneurs 6. Advance the Civic Precinct and Yonge Street revitalization efforts to support economic growth in the village core. A. Support culture staff in promoting cultural resources and opportunities in the Civic Precinct project. B. Encourage the inclusion of makerspaces as part of all-season community spaces within the Civic Precinct and Central Library. Short Term Short Term Economic Development Support Culture Economic Development Support MDB Insight: Town of Richmond Hill Economic Development Strategy Update 33

36 Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Be the Creative Centre of York Region by providing a business environment and quality of place experience that distinguishes it as the GTA s most liveable community. Action / Recommendation Priority Partners C. Support the development of a digital main street (e.g City of Toronto initiative along Yonge Street. Digital Main Street is an innovative online business support platform for main street businesses. 11 Long Term Economic Development Lead Planning; Infrastructure; Local and regional innovation influencers; Private sector partners 7. Advance the development of Richmond Hill Centre. A. Continue to advocate for the extension of the TTC Subway network into the regional centre. B. Promote the Richmond Hill Centre as an Anchor Hub (Metrolinx) in the York Link Office Attraction campaign. Immediate Economic Development Support TTC; York Region Immediate Economic Development Lead Metrolinx; York Region 11 Features of Toronto s Digital Main Street program include: 1. Website Main street businesses receive a digital assessment, which is a roadmap for digital adoption. The digital assessment contains a to-do list and recommendations to trusted technology providers who can help businesses meet their goals. 2. Digital Service Squad Developed in partnership with George Brown College, students and recent graduates will assist the main street businesses in completing their digital assessments and onboarding basic technologies. 3. BIAcademy A suite of learning and development opportunities focused on helping main street businesses adopt and sustain new technologies. 4. BIA Lab A business incubator for retail innovation startups that will match technology companies with main street businesses to test and scale their technologies. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 34

37 Goal 2: Establish Richmond Hill as the Creative Centre of York Region Objective Be the Creative Centre of York Region by providing a business environment and quality of place experience that distinguishes it as the GTA s most liveable community. C. Continue to promote local employment in the form of higher density development along the Town s major corridors and in its business parks. Immediate Economic Development Support D. Promote the incentives from the Community Improvement Plan and advocate for a regional CIP to support office and industrial development along the Town s major corridors and in its business parks. Short Term Economic Development Lead Planning, CAO E. Continue to build relationships with commercial builders and local land owners around redevelopment opportunities for existing office and industrial space. Immediate Economic Development Lead Regional commercial builders 8. Advocate for and encourage infrastructure that supports the movement of residents and workers of Richmond Hill. A. Continue to coordinate with regional economic development and planning services to advocate for the development of more efficient and modern transportation infrastructure into Richmond Hill (eg. Two way GO service, TTC Subway extension) B. Continue to advocate for improved transit connectivity and transit frequency into employment areas. Immediate Economic Development Lead Planning Immediate Economic Development Lead YRT; VIVA MDB Insight: Town of Richmond Hill Economic Development Strategy Update 35

38 Goal 2 Performance Measures Quantitative Total number of new companies in Richmond Hill Total number of companies successfully retained or expanded in Richmond Hill Growth in non-residential tax assessment Absorption rate of employment lands and by type (industrial, commercial-retail, commercial-office) Amount of gross floor area built out for commercial and industrial use Growth in local employment Growth in number of Richmond Hill residents living and working and by type of sector Total number of applications and participants for the Community Improvement Plan Total number of applications and participants using Office Incentives Qualitative Reputation as a major office destination in the GTA MDB Insight: Town of Richmond Hill Economic Development Strategy Update 36

39 Goal 3: Enable the growth of technology-based business and industry Objective Broaden and build the local business base by investing in business retention and expansion and support programs and services. Action / Recommendation Priority Partners 9. Capitalize on regional post-secondary assets to attract and retain local and international students as part of Richmond Hill s future workforce. A. Continue to engage with regional postsecondary assets to explore opportunities to improve engagement and interactions between local businesses and students. B. Continue to encourage business and industry partnerships with regional post-secondary innovation networks. Immediate Economic Development Lead Post-secondary institutions Immediate Economic Development Lead Innovation York; Seneca Helix; Ryerson DMZ 10. Work with the regional bodies in attracting, integrating and retaining technology-based businesses in Richmond Hill. A. Partner with innovation influencers in better positioning Richmond Hill as a technology hub with support towards scale-up activities, opportunities for coop workspaces, maker spaces or studio space and connections to incubation and acceleration environments. B. Using Mackenzie Health and the Innovation Unit as an example, encourage connections between technology-based businesses and public sector institutions in producing joint collaborative environments. Short Term Short Term Economic Development Lead Local and regional innovation influencers Economic Development Lead Local businesses and local public sector institutions C. Continue the corporate calling program with a focus on high growth, high value businesses. Immediate Economic Development Lead MDB Insight: Town of Richmond Hill Economic Development Strategy Update 37

40 Goal 3: Enable the growth of technology-based business and industry Objective Broaden and build the local business base by investing in business retention and expansion and support programs and services. Action / Recommendation Priority Partners 11. Support the redevelopment of existing building stock in the Town s Business Parks to encourage the attraction and retention of technologybased businesses. A. Identify business parks, Richmond Hill Centre, and other centres and corridors as priority areas in the rollout of the Community Improvement Plan. B. Develop a strategy for the Newkirk Business Park that better positions the employment area for technology-based businesses including opportunities to repurpose the existing inventory of industrial buildings as flexible workspace options. B.1 Promote the use of the Town s CIP program and related office incentives to local landowners. B.2 Explore opportunities develop a parking structure are the Richmond Hill GO Station Short Term Short Term Economic Development Support Planning Economic Development Lead C. Continue to maintain and promote a vacant building inventory that includes affordable and flexible workspace. Immediate Economic Development Lead D. Investigate the need, benefits and feasibility of creating an Industrial Business Improvement Areas in the Town s business parks. Long Term Economic Development Lead BLC; Business owners MDB Insight: Town of Richmond Hill Economic Development Strategy Update 38

41 Goal 3 Performance Measures Quantitative Total number of new companies in Richmond Hill Total number of start-ups in target sectors Total number of companies successfully retained or expanded in Richmond Hill Qualitative Level of engagement with post-secondary institutions Reputation as an innovative community for technology-based businesses MDB Insight: Town of Richmond Hill Economic Development Strategy Update 39

42 Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development marketing that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. Action / Recommendation Priority Partners 12. Establish a confident community identity by promoting the Town s global connections and the quality of its business environment. A. Establish a set of key messages with regional innovation influencers that highlight the resources available to businesses locating in Richmond Hill. B. Continue to shape regional promotion messages, specifically as it relates to the Town s current business advantages and broader economic development initiatives. C. Produce annual promotional highlights illustrating the global connections emerging from existing twinning agreements. Immediate Economic Development Lead Local and regional innovation influencers Immediate Economic Development Lead York Region Immediate Economic Development Lead D. Continue to host foreign delegations and companies and encourage the development of additional twinning agreements. E. Continue to conduct trade missions in technology-focused global environments, promoting Richmond Hill s locational advantages and business community. F. Continue to update and implement the Economic Development Marketing Strategy to reflect the need to appeal to a broad audience of interests (i.e. future residents, business investment and visitors). Short Term to Long Term Short Term to Long Term Short Term Economic Development Lead BLC, Board of Trade Economic Development Lead Economic Development Lead MDB Insight: Town of Richmond Hill Economic Development Strategy Update 40

43 Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development marketing that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. Action / Recommendation Priority Partners 13. Introduce and promote a suite of incentives to encourage office development in the Town s Business Parks A. Promote Richmond Hill s office incentives on all municipal marketing platforms. Short Term Economic Development Lead B. Promote Richmond Hill s office incentives as part of the York Link campaign. C. Advocate for the development of matching office incentives from York Region. Immediate Economic Development Support York Region Immediate Economic Development Lead Vaughan; Markham MDB Insight: Town of Richmond Hill Economic Development Strategy Update 41

44 Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development marketing that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. Action / Recommendation Priority Partners 14. Connect and foster relationships with business leaders to support the Town s economic opportunities. A. Create a Business Ambassador Program using the Business Leadership Council members. A.1 The Business Ambassador Program will encourage local business leaders to share leads by providing one point of contact (dedicated ) in order that Economic Development may follow up. Promoting the Business Ambassador Program will require a partnership between Council, staff and business leaders. A.2 Include the creation of a toolkit that would include promotional videos, showcase Richmond Hill s business environment and quality of life plus contain the economic profile and other business attraction materials. Examples of successful Business Ambassador Programs include Fredericton, Hamilton, Quebec City, Regina, Winnipeg and Calgary. Immediate Economic Development Lead BLC MDB Insight: Town of Richmond Hill Economic Development Strategy Update 42

45 Goal 4: Promote a confident community identity Objective Deliver a best in class approach to economic development marketing that is based on engagement with our diverse business leaders and a brand that identifies Richmond Hill as a premier business location in the Greater Toronto Area. Action / Recommendation Priority Partners B. Identify opportunities to expand relationships with local newcomer organizations to promote workforce integration of newcomers in high growth, high value sectors C. Foster stronger partnerships with local ethnic associations in supporting the business needs of their respective communities. Immediate Economic Development Lead Workforce Planning Board; Newcomer community organizations (Welcome Centre) Immediate Economic Development Lead Ethnic focused business associations D. Investigate the need, benefits and feasibility of a concierge service for the Town. Short Term Economic Development Lead CAO MDB Insight: Town of Richmond Hill Economic Development Strategy Update 43

46 Goal 4 Performance Measures Quantitative Total number of followers on social media platforms Total number of visitors to the economic development webpages Total number of leads generated from the Business Ambassador Program Total number of information requests through SBEC, regional innovation influencers, York Region and Economic Development Total number of companies successfully retained or expanded in Richmond Hill Total number of applications and participants using Office Incentives Total number of ethnic-focused businesses in Richmond Hill Qualitative Reputation as a good location for small and medium business growth Reputation as an innovative community for technology-based businesses Feedback on the range of information products in demand by investors and business community Level of engagement with newcomer organizations Level of engagement with ethnic focused business associations MDB Insight: Town of Richmond Hill Economic Development Strategy Update 44

47 Town of Richmond Hill Economic Development Strategy Update Appendix Report MDB Insight: Town of Richmond Hill Economic Development Strategy Update 45

48 Appendix A: Current Context The following section examines the current socio-economic, labour force, and business conditions for Richmond Hill with consideration given to the changes that have occurred since the approval of the economic development strategy in For comparison purposes, performance indicators have been compared to York Region averages (without Richmond Hill) and the Province of Ontario. The following data sources were reviewed: 2011 National Census and National Household Survey EMSI Analyst Projections Statistics Canada Canadian Business Patterns Data York Region 2041 Population and Employment Forecasts 2015 Socio-Economic Study for the Town of Richmond Hill 2015 York Region Employer Survey A.1 Socio-Economic Overview Population Characteristics Current and Projected Population Based on current forecasts, the population of Richmond Hill is expected to increase from 208,700 in 2016 to 277,900 by 2041 (Preferred Growth Scenario - Figure 6). While the pace of growth has slowed somewhat since the development of the strategy in 2010, it still represents growth of over 33%. Given the finite supply of both residential and non-residential land, this rate of growth will demand higher density development along the Town s major corridors and in its employment areas. This is particularly important if the Town is to ensure a balanced assessment base. Figure 6: Current and projected population growth rates, , preferred scenario Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight MDB Insight: Town of Richmond Hill Economic Development Strategy Update 46

49 Figure 6 also illustrates the impact of a slowing rate of growth relative to other areas of York Region. This can be attributed to the fact that the Town is approaching the limits of its urban boundary. Notwithstanding, by 2041, Richmond Hill is expected to comprise approximately 18% of the region s population. Population by Age and Gender Richmond Hill s population continues to be dominated by a young and middle-aged age cohort. The median age in 2011 was 39.8, making it one of Ontario s youngest communities. This is expected to remain the case over the next decade. Figure 7 and Figure 8 both provide projected population growth rates by all age cohorts. These projections suggest that Richmond Hill will see an increase in the older cohorts retirees (65-69) and older seniors (70+). While not as large as other cohorts, it does have implications for future housing needs, accessibility, and community programming. Figure 7: Projected population by age and gender, York Region, Source: EMSI Analyst York Region Demographic Overview MDB Insight: Town of Richmond Hill Economic Development Strategy Update 47

50 Figure 8: Proportion of population by age group, Richmond Hill vs Ontario, 2011 Source: 2011 Census Household Characteristics Household Growth and Type As of 2011, the average household size for Richmond Hill is 3.1 persons. This is on par with other York Region municipalities and only slightly higher than the province average (Figure 9). Four person households are the most common household type in Richmond Hill. Figure 9: Proportion of private households by household size, 2011 Source: 2011 Census Despite strong population growth, household size is expected to decline in the coming decades. The 58,650 households recorded in 2011 have increased to 65,170 in 2016 MDB Insight: Town of Richmond Hill Economic Development Strategy Update 48

51 for a net increase of 6,520 or 11.1%. By 2041, the number of households is expected to increase a further 41% from the 65,170 in 2016 to 91,610 (Figure 10). In comparison the rest of York Region, over the same time period is forecasted to increase by 64%. Figure 10: Total number of private households forecast, Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight As noted previously, greenfield low density development is limited by the Town s urban growth boundary. As a result it is expected that many of these future households will be housed in multi-family and condo style high rise development (Figure 11). Apartments and condos are expected to increase by 288% from 2011 levels, a total of 16,480 new units. It is anticipated that multi-family homes (Row houses, apartment / condos, duplexes) will be the most common built form built in Richmond Hill in the decades to come. Figure 11: Forecasted Number of new dwellings by type, Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight MDB Insight: Town of Richmond Hill Economic Development Strategy Update 49

52 Immigration and Migration Richmond Hill continues to see significant growth in its immigrant population. The Town has also seen an increased number of York Region based immigrants choose Richmond Hill as their primary settlement destination. From , 27% of all new immigrants migrating into York Region have chosen Richmond Hill (Figure 12). Figure 12: Number of new immigrants, origins and mother tongues, YEAR Source: 2011 Census China, Iran, and Hong Kong comprise the predominant base of new immigrants. These three countries make up approximately 80% of all new immigrants to Richmond Hill. Income Characteristics Household Income Between 2006 and 2011, Richmond Hill s median household income increased by 11%. This was the second largest increase behind Aurora, and well in excess of the average for the remainder of York Region. The highest proportion of household income was recorded in the $125,000 and over category (Figure 13). Approximately 32% of all households have an income in excess of $125,000. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 50

53 Figure 13: Proportion of population based on household income levels, 2011 Source: 2011 National Household Survey Education Characteristics Residents of Richmond Hill continue to be some of the best educated. In 2011, over 47% of all residents aged had a university certificate, diploma, or degree, making it one of York Region s and Greater Toronto Area s most educated communities (Figure 14). When consideration is given to residents fields of study, Richmond Hill had the highest percentage of residents who had studied, business, management and public administration (24.5%) and architecture, engineering and, related technologies (20.7%) (Figure 15). This is comparable to the profile for York Region as a whole, but with a slightly higher proportion of residents with an education in a physical and life science technology field. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 51

54 Figure 14: Proportion of educational attainment levels within the population aged 25-64, 2011 Source: 2011 National Household Survey Figure 15: Field of study, 2011 Source: 2011 National Household Survey MDB Insight: Town of Richmond Hill Economic Development Strategy Update 52

55 A.2 Local Workforce Overview Forecasted Workforce Growth by Industry The following section distinguishes between the number of local workers who are either employed by a business or industry (within or outside Richmond Hill) and those that describe themselves as self-employed. Approximately, 22% of Richmond Hill s labour force identifies as self-employed (19,715 workers). Employed Local Workforce by Industry Richmond Hill recorded a workforce of 67,019 employed individuals in In the 2010 strategy, the highest concentration of the workforce was in retail, finance and insurance, professional, scientific and technical services, and health care and social assistance sectors. The Region s recent Employment and Industry Report suggests a shift in the concentration of workers. In 2016, the retail trade services sector comprised the largest number of local workers (9,905), followed by healthcare and social assistance services (8,097), and wholesale trade services (7,585). Professional, scientific, and technical services and accommodation and food services round out the top five industries (Figure 16). Figure 16: Growth in local workforce by industry, 2016 and 2024, employed individuals Source: EMSI Analyst Custom Industry Overview. Comparatively, Richmond Hill comprises a larger percentage of the regional workforce in the healthcare and social assistance services (24% of the regional workforce is MDB Insight: Town of Richmond Hill Economic Development Strategy Update 53

56 located in Richmond Hill), information and cultural industries (23% of the regional workforce is located in Richmond Hill) and professional, scientific, and technical services (18% of the regional workforce is located in Richmond Hill). Each of these industries is expected to continue to grow significantly through By 2024, healthcare and social assistance services are projected have an additional 1,408 individuals added to the local workforce, professional, scientific and technical services an additional 1,211 individuals added to the local workforce and information and cultural industries an additional 166 individuals added to the local workforce. While these growth patterns are evident across the region, Richmond Hill is anticipated to have slightly more growth in these sectors (17% growth in healthcare and professional scientific services, and 6% growth in information and cultural industries) than other parts of the region (15-16% growth in healthcare and professional scientific services and 6% growth in information and cultural industries). Compared to other parts of Ontario (13-15% growth in healthcare and professional scientific services and 4% growth in information and cultural industries), York Region is well prepared to also see increased investment in these sectors. This would suggest that the Town will continue to have a strong competitive advantage in the attraction and retention of businesses in these sectors. Self-Employed Local Workforce by Industry In 2016, Richmond Hill had a workforce of 19,715 workers who identified as selfemployed. In 2016, the professional, scientific and technical services sector comprised the largest number of self-employed workers (4,609 or 23% of all self-employed individuals). The second largest was the construction sector with 2,827 workers. It is expected that these two sectors will continue to grow and comprise most of the selfemployed workforce (Figure 17). Comparatively, Richmond Hill comprises a larger percentage of the regional self-employed workforce (19% of the regional self-employed workforce is located in Richmond Hill). MDB Insight: Town of Richmond Hill Economic Development Strategy Update 54

57 Figure 17: Growth in local workforce by industry, 2016 and 2024, selfemployed individuals Source: EMSI Analyst Custom Industry Overview. SUMMARY CHART: Growth in local workforce by industry, employed and self-employed individuals Source: EMSI Analyst Custom Industry Overview. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 55

58 Forecasted Employment Growth by Occupation Labour force by occupation considers the activities associated with an individual s employment. This analysis offers a more detailed understanding of an individual s specialization compared to an industry-based analysis. Looking at Figure 18, in 2016, Richmond Hill had a higher proportion of its workforce involved in sales and service occupations (23,858 workers), business, finance and administration occupations (14,429 workers), and occupations in education, law and social, community and government services (9,712). Richmond Hill had the highest proportion of workers in health related occupations when compared to the remaining York Region municipalities. It has also experienced some of the highest growth in that occupation from 2011 to Looking at forecasted occupational growth, Richmond Hill will continue to see a significant growth in its sales and service occupations (relative to both York Region and Ontario levels), a growth in business, finance, and administrative occupations (8% growth compared to 6% growth in the remaining York Region municipalities), growth in education, law, and social, community and government occupations (relative to Ontario and York Region), and growth in natural and applied science occupations (relative to Ontario and York Region). Inversersly, occupations in art, culture, recreation, and sport are not projected to grow as significantly as other parts of Ontario and York Region. This may be the results of other regions and municipalities having more opportunities for these individuals either through investment in additional institutions/infrastructure (such as theatres, museums and galleries) or investment in sport related activities (Pan Am infrastructure). Figure 18: Growth in labour force by occupation, 2016 and 2024, employed individuals Source: EMSI Analyst Custom Occupation Overview. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 56

59 A.3 Local Employment Overview Based on current forecasts, total employment growth in Richmond Hill is expected to increase from an estimated 69,300 in 2011 to 109,800 by 2041 (Preferred Growth Scenario - Figure 19). This represents a growth rate of over 58%. The finite supply of non-residential land suggests that a significant proportion of local employment will take place in higher density development along the Town s major corridors and in its employment areas. Figure 19: Current and projected employment growth rates, , preferred scenario Source: York Region 2041 Population and Employment Forecasts, modified by MDB Insight Labour Force Workflow Patterns Labour Flow Patterns from the National Household Survey provides a picture of the movement of labour in and out of a municipality. It compares the number of jobs in each sector held by local residents (who may work outside the community) with the number of jobs in the same sectors held by people working in the community (some of whom may live outside the community). When interpreting the table, if a negative number appears, it means that the size of the resident employed labour force is larger than the number of jobs available in the sector in the municipality. Therefore, it indicates that people are commuting out of the municipality to work in this sector, or the municipality is exporting labour. Conversely, if the number is positive, there are more local jobs in the sector than the resident labour force employed in the sector. Figure 20, illustrates the labour flow patterns for Richmond Hill in 2011 based on information the Town exported over 30,000 jobs to other jurisdictions. Comparatively, Markham and Vaughan combined, exported over 20,000 jobs, suggesting Richmond Hill may have not provided the level of opportunities for its resident labour force as other communities. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 57

60 Figure 20: Labour flow by industry, Richmond Hill VS Markham and Vaughan, 2011 Source: 2011 National Household Survey Specifically, Richmond Hill saw the greatest export in its finance and business services workforce (predominantly, individuals employed in the credit and insurance industries) and its creative cultural and professional, scientific and technical workforce (architects, engineers, and post-secondary workers). While not directly employed in the Town, these patterns do confirm and support the notion that skilled workers choose to live in Richmond Hill regardless of where they may work. Local Job Wages by Occupation In 2015, the total jobs located in Richmond Hill recorded a median hourly wage of $ Comparatively, that number is higher than the average of the remaining York Region municipalities ($23.60) except for Markham ($24.85). As mentioned earlier, sales and service occupations make up the largest number of job opportunities available in Richmond Hill. Inversely, these occupations are also the lowest in terms of median hourly wage. However, Richmond Hill has a high proportion of job opportunities that offer some of the higher median wages available by specific occupational groups, including occupations in education, law and social, and government services, natural and applied sciences and management type occupations (Figure 21). MDB Insight: Town of Richmond Hill Economic Development Strategy Update 58

61 Figure 21: Median occupation wage by occupation, 2015, employed individuals 12 Source: EMSI Analyst Custom Occupation Overview. Local Job Performance by Target Sector The 2010 Economic Development Strategy for the Town highlighted four key sectors that demonstrated the greatest potential for economic growth. These four sectors were: Finance and Insurance Professional, Scientific and Technical Services Information and Cultural Industries Health Industries Using Emsi Analyst projections (which accounts for Labour Force Survey data) the following estimated scenarios illustrate the current strength and opportunities associated with the local job patterns in these sectors. Finance and Insurance Sector Using the same definitions as those in the industry sector profiles the following labour force patterns emerged: Finance and insurance sector jobs have decreased by 9% in Richmond Hill from This accounts for a total of 182 jobs lost for a total finance and 12 Does not include self-employed wages. Only 2015 dataset available for 2015 Median Hourly Wage statistics MDB Insight: Town of Richmond Hill Economic Development Strategy Update 59

62 insurance services job count of 1,915 in Comparatively, the remaining York Region municipalities saw a significant growth in finance and insurance jobs (7%) It is projected that the finance and insurance job count will continue to decrease with an additional 42 jobs leaving the community by 2024 for a total of 1,873 finance and insurance jobs in Richmond Hill. Figure 22: Finance and insurance sector, local job performance and projected growth Source: EMSI Analyst Custom Industry Overview. Professional, Scientific, and Technical Services Sector (PSTS) Using the same definitions as those in the industry sector profiles the following labour force patterns emerged: PSTS sector jobs have increased by 62% in Richmond Hill from This accounts for a total of 2,740 new jobs created for a total PSTS job count of 7,160 in Comparatively, the remaining York Region municipalities saw a smaller growth (32%), with most growth occurring in Markham. It is projected that the PSTS job count will continue to grow with an additional 1,211 new jobs by 2024 for a total of 8,371 PSTS jobs in Richmond Hill. Figure 18 also illustrates that Richmond Hill s PSTS job count will see a greater growth than the remaining York Region municipalities. Both Richmond Hill and Markham are expected to see increases of up to 16-18% where Vaughan and other municipalities will see between 12-15% growth. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 60

63 Figure 23: Professional, scientific and technical sector, local job performance and projected growth, Source: EMSI Analyst Custom Industry Overview. Information and Cultural Industries Sector Accurately capturing information and cultural industries data is an ongoing challenge. With an ever growing and changing industry the standard for defining this sector has been to evaluate the sector from two separate lenses: the cultural industries 13 and the information and design industries. 14 Using these definitions the following local job patterns emerged: Information and design industry jobs have increased by 12% in Richmond Hill from This accounts for a total of 488 new jobs created for a total information and design industry job count of 4,498 in Comparatively, the remaining York Region municipalities saw a much larger growth (19%), with most growth occurring in Markham, Vaughan and Newmarket. Cultural industry jobs have increased by 9% in Richmond Hill from This accounts for a total of 136 new jobs created for a total cultural industry job count of 1,644 in Comparatively, the remaining York Region municipalities saw a much larger growth (26%). It is projected that both sectors will continue to grow an additional 374 jobs (information and design industries) and 33 jobs (cultural industries) by 2024 for a 13 Cultural industries: Motion picture and video industries (5121); Sound recording industries (5122); Radio and television broadcasting (5151); Pay and specialty television (5152); Performing arts companies (7111); Spectator sports (7112); Promoters (presenters) of performing arts, sports and similar events (7113); Agents and managers for artists, athletes, entertainers and other public figures (7114); Independent artists, writers and performers (7115); Heritage institutions (7121); Amusement parks and arcades (7131); Gambling industries (7132); Other amusement and recreation industries (7139) 14 Information and Design Industries: Newspaper, periodical, book and directory publishers (5111); Software publishers (5112); Architectural, engineering and related services (5413); Specialized design services (5414); Advertising, public relations, and related services (5418); Other schools and instruction (6116) MDB Insight: Town of Richmond Hill Economic Development Strategy Update 61

64 total of a 4,872 information and design jobs and 1,677 cultural industry jobs in Richmond Hill (Figure 24). Figure 24: Information and cultural industries, local job performance and projected growth, Source: EMSI Analyst Custom Industry Overview. Health Industries Sector Using the same definitions as those in the industry sector profiles the following labour force patterns emerged: Jobs in the health Industries have increased by 16% in Richmond Hill from This accounts for a total of 246 new jobs created for a total health industries job count of 1,831 in Comparatively, the remaining York Region municipalities saw a much larger growth (29%), with most growth occurring in Newmarket and Markham. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 62

65 It is projected that health industry jobs will continue to grow, adding an additional 121 jobs by 2024 for a total of 1,952 health industry jobs in Richmond Hill. Figure 25 also illustrates that Richmond Hill s health industries will see a slightly lower growth than the remaining York Region municipalities. Figure 25: Health industries sector, labour force performance and projected growth, Source: EMSI Analyst Custom Industry Overview. A.4 Business Overview Statistics Canada s Canadian Business Patterns data provides a record of business establishments by industry and size, collected from the Canada Revenue Agency. The data collected for Richmond Hill includes all local businesses that meet at least one of the three criteria below: Have an employee workforce for which they submit payroll remittances to CRA; or Have a minimum of $30,000 in annual sales revenue; or Are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years. The Canadian Business Patterns Data records business counts by Total, Indeterminate 15 and Subtotal categories. It should be noted that the Canadian Business Patterns Data uses the Canada Revenue Agency as a primary resource in establishment counts; therefore, businesses without a business number or indicating annual sales less than $30,000 are not included. 15 Some businesses do not have a payroll deduction account with Canada Revenue Agency, but may still have a workforce of contracted workers, family members or business owners. The Business Register does not have this information available and assigns these establishments to an Indeterminate category within the CBP counts. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 63

66 Business Growth by Size Understanding the trends in business growth by employee size provides valuable insight for supporting future growth and investment in Richmond Hill. It provides an indication of where the priorities of the Town should lie, especially with regards to program development and delivery, and land and space requirements. Business patterns data for the previous three years (June 2016, June and December 2015 and December ), suggest that Richmond Hill has seen an increase in its total business base. As of June 2016, the Town was home to 9,012 businesses. These businesses were predominantly small businesses with less than 10 employees (85% of the total subtotal). Figure 26 also suggests that the Town has seen an increase in businesses that employ over 50 individuals, with June 2016 numbers reporting 40 more businesses than in June Business patterns also suggest that there are 22,831 businesses classified as indeterminate, which includes home-based businesses and sole proprietorships. The 2015 York Region Employer Survey estimates that only 7% of all total businesses across the region are home-based business. Figure 26: Richmond Hill businesses count and employee size, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 Business Growth by Industry When considering only businesses with employees professional, scientific, and technical services had the largest proportion of the total business count. Professional, scientific, and technical services as of June 2016, represented 22% of all businesses (paid employees). The second highest concentration of businesses were healthcare and social assistance services with 832 registered businesses followed by retail trade with 796 businesses and construction with 774 businesses. While there has not been any significant business loss, the sectors that have struggled to grow in Richmond Hill include manufacturing, retail trade, real estate and rental and leasing, other services (personal services), and arts, entertainment and recreation industries. Interestingly, transportation and warehousing industries have seen some growth in Richmond Hill with 27 new registered businesses between June 2015 and June Canadian Business Patterns Data before December 2014 cannot be cross examined with 2015 and newer datasets. A change in the collection process and representation has removed the ability to track trends beyond those periods. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 64

67 Overall, Richmond Hill saw an increase of 73 businesses over the past year, a 1% increase (Figure 27) Figure 27: Richmond Hill business growth by industry, business registered with the CRA, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 Business Concentrations A location quotient (LQ) analysis, can measure the concentration of business activity in a local area relative to an over-arching area. An LQ of over 1.25 suggests a local relative concentration of business or industry activity. In theory, this suggests the local sector is exceeding local demand and exporting products/services to areas outside of the local community. An LQ of less than 0.75 suggests a gap between demand and exporting products. Using business patterns for June 2016, Figure 28 illustrates that Richmond Hill has only one industry sector with a high concentration within Ontario. Professional, scientific and technical services had an LQ of 1.48 giving it one of the highest LQs across York and the GTA. Most of Richmond Hill s industries had no enhanced concentration or specialization. This is a result of its proximity to neighbouring municipalities with very similar economies to Richmond Hill. Industries that exhibit a low concentration level and can be considered a non-competitive sector in the Town include Manufacturing and Transportation and Warehousing. Both Healthcare and social assistance and finance and insurance sectors demonstrated average concentrations. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 65

68 Figure 28: Location quotient analysis, registered businesses with CRA, June 2016 Source: Canadian Business Patterns, June 2016 Note: 50 KM Radius includes: Adjala-Tosorontio, Ajax, Aurora, Bradford West Gwillimbury, Brampton, Brock, Caledon, Chippewas of Georgina Island First Nation, Clarington, East Gwillimbury, Erin, Essa, Georgina, Halton Hills, Innisfil, King, Markham, Milton, Mississauga, Mono, New Tecumseth, Newmarket, Oakville, Oshawa, Pickering, Scugog, Toronto, Uxbridge, Vaughan, Whitby, Whitchurch-Stouffville. Business Performance by Target Sector Building on the earlier discussion of target sectors performance (section 3.3.3) the following business pattern data tables illustrate the relative strength and opportunities associated the business growth of each target sector. Finance and Insurance Sector Using the same definitions as those in the industry sector profiles the following business patterns emerged: Finance and insurance businesses are predominantly small based businesses with 78% of all registered businesses in June 2016 employing less than 10 individuals. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 66

69 Finance and insurance businesses have grown slightly over the past year (June ), with 10 additional registered businesses in Richmond Hill. Comparatively, finance and insurance businesses grew by 10% in the remaining York Region municipalities. Figure 29: Finance and insurance sector business employee size and growth, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 NAICS: 522, 523, 524 Professional, Scientific and Technical Services Sector Using the same definitions as those in the industry sector profiles the following business patterns emerged: Professional, scientific and technical services businesses are predominantly small based businesses with 94% of all registered businesses in June 2016 employing less than 10 individuals. Professional, scientific and technical services businesses have grown slightly over the past year (June ), with 32 additional registered businesses in Richmond Hill. Computer systems design and related services are the predominant subsector of PSTS. Comparatively, professional, scientific and technical services businesses grew by 3.5% in the remaining York Region municipalities. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 67

70 Figure 30: Professional, scientific and technical services sector business employee size and growth, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 NAICS: 5411, 5412, 5413, 5414, 5415, 5416, 5417, 5418, 5419 Information and Cultural Industries Using the definitions laid out earlier, business patterns data were examined through the same lenses; the cultural industries and the information and design industries. Using these definitions the following business patterns emerged: Information and design businesses are predominantly small based businesses with 80% of all registered businesses in June 2016 employing less than 10 individuals. Information and design businesses have grown slightly over the past year (June ), with 17 additional registered businesses in Richmond Hill. This is higher than the reported business growth in the finance and insurance sector. Comparatively, the sector grew much slower in the remaining York Region municipalities (0.6%). MDB Insight: Town of Richmond Hill Economic Development Strategy Update 68

71 Figure 31: Information and design sector business employee size and growth, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 NAICS: 5111, 5112, 5413, 5414, 5418, 6116 Cultural businesses are predominantly small based businesses with 65% of all registered businesses in June 2016 employing less than 10 individuals. Cultural businesses have seen a decline in the past year (June ), with 2 registered businesses closing or leaving Richmond Hill. Comparatively, cultural businesses grew by 8% in the remaining York Region municipalities. Figure 32: Cultural industries sector business employee size and growth, 2016, 2015, 2014 MDB Insight: Town of Richmond Hill Economic Development Strategy Update 69

72 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 NAICS: 5121, 5122, 515, 517, 7111, 7112, 7113, 7114, 7115, 7121, 7131, 7132, 7139 Health Industries Sector Using the same definitions as those in the industry sector profiles the following business patterns emerged: Health-related businesses are predominantly small based businesses with 66% of all registered businesses in June 2016 employing less than 10 individuals. Health-related businesses have declined over the past year (June ), with 4 registered businesses closing or leaving Richmond Hill. Comparatively, health-related businesses grew by 3% in the remaining York Region municipalities. Figure 33: Health industries sector business employee size and growth, 2016, 2015, 2014 Source: Canadian Business Patterns, June 2016, 2015 and December 2014 NAICS: 3254, 3256, 3391, 4145, 5417, 6215 MDB Insight: Town of Richmond Hill Economic Development Strategy Update 70

73 A.5 Business Climate Overview Since 2000, BMA Management Consulting Inc. has completed an annual municipal comparative study on behalf of participating Ontario communities. The study identifies both key quantifiable indicators and select environmental factors that should be considered as part of a comprehensive evaluation of a local municipality s competitive nature performance. For the purposes of this section the following factors were analyzed for Richmond Hill and surrounding markets: 2015 Tax Ratios 2015 Tax Comparisons per Sq. Ft Additionally, an examination of Richmond Hill s current vacant land was provided Tax Ratios Over the course of last year, Richmond Hill saw a slight shift in its tax burden on residential properties from 87.2% reliance in 2014 to 86.2% in However, the current tax burden remains one of the highest in York Region. Of the four direct neighbours, only Aurora and Richmond Hill have less than 15% of the tax burden coming from non-residential properties (Figure 34). The Ontario median in 2015 was closer to an 80% residential to 20% non-residential split. The preservation of employment lands is an important consideration for Richmond Hill. Ensuring flexible land policies and a timely development review process should assist with maintaining and covering the non-residential tax base. Figure 34: Tax ratio comparison, 2015 Source: BMA Municipal Study, Tax Comparisons per Sq. Ft. In examining tax comparisons for commercial and industrial lots per sq.ft, Richmond Hill has some of the lowest taxes in the Greater Toronto Area (Figure 35). From a commercial perspective the Town ranked behind Markham and Aurora. From an industrial perspective the Town ranked behind Vaughan and Aurora. MDB Insight: Town of Richmond Hill Economic Development Strategy Update 71

74 Figure 35: Standard non-residential tax comparison, taxes per sq.ft, 2015 Source: BMA Municipal Study, 2015 Business Park Vacancy Rates As of 2016, Richmond Hill s business parks are at 85% capacity (Figure 36). The Headford Business Park comprised most of Richmond Hill s vacant lands. In total the Town has 291 acres of vacant land, which is a challenge when it is forecasted that Richmond Hill s employment base will grow by 58% from creating an additional 40,500 jobs. Figure 36: Business parks and vacancy rates, 2016 Source: Town of Richmond Hill Vacant Employment Land Inventory, 2016 MDB Insight: Town of Richmond Hill Economic Development Strategy Update 72