Business Plan: Corporate Investments & Partnerships

Transcription

1 Business Plan: Corporate Investments & Partnerships How does this service contribute to the results identified in the City of London Strategic Plan? A Strong Economy Corporate Investments and Partnerships support the Investment and Economic Prosperity Committee (IEPC) Goal of developing a 10-year plan that will move London s Economy forward faster and ensure long term prosperity for our community. The objectives are to: create jobs; leverage investment; stimulate spin-off benefits; build beneficial partnerships; benefit key sectors; and fuel transformational change in London s economy. The Corporate Investments and Partnerships Service Area will seek and review potential business opportunities; support business case and business plan development; manage existing projects and make recommendations from a return focused, profit maximization perspective. Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Manage investment and partnership projects approved by City Council 2. Support the London Music Industry Development Task Force 3. Support the evaluation and review of potential business ideas presented to the City of London 4. Support the development of the City s Economic Development or Prosperity Strategy 5. Seek out new investments, partnerships and business opportunities for the City of London How Much Did We Do? (optional) Five major projects currently being managed. Support the creation and management of the Task Force whose role is the development of a community wide comprehensive music strategy intended to promote and support music in London. This is on an ongoing basis as new ideas/projects are presented by the community. Is The City Mandated To Provide This Service? No No No No No Can The Level Of Service Be Changed? Yes Yes Yes Yes Yes 1

2 What is the current state of this service? Current Objectives / Milestones During the June 2012 IEPC meeting, a request for ideas was made to the community where 49 prosperity proposals were presented. In October of 2012, Proponents were requested to complete a due diligence checklist; 12 checklists were returned which were reviewed using a business centred approach focused on economic development. An analytical tool containing 23 criteria directly related to the stated objectives was applied. City of London financial constraints were considered. December 18, 2012, the Corporate Investments and Partnerships staff prepared a report for IEPC that presented a shortlist for the purpose of accelerating London s economy and fostering private sector investment in the City. The report discussed the Industrial Lands Development Strategy and analyzed 49 proposals/ideas that were brought forward to the IEPC in June of 2012, in an effort to present business ideas that would stimulate the economy and would help to grow prosperity in the City. As a result five proposals best suited to the advancement of the goal and objectives of London s Prosperity Plan were recommended and are currently being advanced through their appropriate phases. 1) Industrial Land Strategy- in process 2) Redevelopment of 111 Horton Street East- 5 gates were identified, the proposal is moving through gate 2- in process 3) A mixed use development/investment, including a performing arts centre- proposal evaluation in process 4) London Medical Innovation and Commercialization Network (The Mission of the LMIC Network is to conduct leading edge research and innovation activities aimed at improving the health and well-being of local, national, and international communities. Simultaneously, through commercialization efforts, economic benefit will be realized for the LMIC Network stakeholders and Southwestern Ontario. - grant agreement in process 5) Re-evaluation for potential 2 nd year of funding towards the joint proposal from 2 employment support programs- in process In addition, the CIP was tasked with the creation of the London s Music Industry Development Task Force. As a result, the terms of reference were endorsed by Council and a Task Force was created (June 5, 2014), who is now playing a key role in the development of a community wide comprehensive music strategy intended to promote and support music in London. The objective of the group is to guide initiatives by supporting the economic and cultural development of London s music industry; to exchange ideas; to discuss opportunities and challenges; to provide input and advice; and to collectively take advantage of the current Ontario Music Fund, in order to support growth and innovation in London s Music Industry. 2

3 Also, based on a recent Economic Development Review completed by KPMG, as presented to the Strategic Priorities and Planning Committee on June 23, 2014, it was determined that the Corporate Investments Unit will support the development of the City s Economic Development or Prosperity Strategy. Research and investigation in this regard has been initiated. What Is Driving This Service? On January 23, 2012, Municipal Council was presented with the Developing a Strategic Investment and Economic Prosperity Plan report, where a process was proposed for the purpose of developing the Strategic Investment and Prosperity Plan. Challenges and Pressure Points In accordance with the Ontario Chamber of Commerce slow growth will continue in most Ontario economic regions (as defined by Statistics Canada) into 2014, with some improvement expected in External and domestic economic conditions will not be conducive to a significant growth upturn in the near term. For example, the employment growth rate for London for will be 0.7% to 1.0%, whereas the Ontario average is projected at 1.4% and 1.6%; the unemployment rate in London is predicted to average 7.9% in 2014 and drop slightly to 7.6 in 2015, as compared to the Ontario average 7.2% and 6.8% respectively. One of the biggest challenges and pressure points is the unemployment rate, which is slightly higher than the Ontario average, as predicted for 2014 and 2015, putting pressure on the administration to speed projects up, which could potentially impact the city s prosperity. On a positive note, housing sales and prices, residential and non-residential private building permits are on the rise. In short, the current local economic conditions impact the challenges and pressure points faced by the Administration. Recent Achievements Result Aligned Strategy Achievement Aligned with the City of London Strategic Plan, the Mayor s Economic Prosperity Council Report (2011), London s Cultural Prosperity Plan, and Establishing the Economic Baseline presentation, on January 27th, 2014 the Investment and Economic Prosperity Committee endorsed the creation of London s Music Industry Music Industry Development Task Force On February 11, 2014 Municipal Council resolved that a Music Industry Development Task Force be created, to oversee a local music strategy that will support the Province of Ontario Music Fund initiative in London. Developed the terms of reference as well as application for appointment to the task force. Reviewed the application and prepared biographies for each of the 23 3

4 Result Aligned Strategy Achievement Development Task Force. The Task Force is aligned with the City of London Strategic Plan in the following manner: members and posted on the prosperity for London website. In addition, summarized what other municipalities are doing to improve their music scene, summarized the Ontario Music Fund and posted on the website A Strong Economy: Develop our skilled workforce; Establish a focused strategy for the downtown; Build partnerships with key private, institutional and community partners. A Vibrant and Diverse Community: Strengthen and embrace London s diversity and cultural identity; Preserve and celebrate arts, culture and heritage; Build the vibrancy of the downtown including special events. In accordance with the Terms of Reference, the London s Music Industry Development Task Force was announced on June 5 th, 2014, and is composed of 23 members consisting of: The Mayor as the Chair and 22 Members representing one or more of the below noted sectors of the music industry: Independent Artists; Events and Venues; Artist and Business Management, Representation and Marketing; Music Creation; Associations, Organizations and Partners; Music Awards Programs. A Caring Community: Support individuals at all stages of life, from newborns to the elderly, and from newcomers to the established. The Task Force is presently playing a key role in the development of a community wide comprehensive music strategy intended to promote and support music in London. Scheduled and serves as a resource at 4 meetings; where the last scheduled meeting is taking place on the 21 st of July, additional meetings may be scheduled in order to complete the Music Strategy. The target date to complete the Music Strategy for London is end of August, For more details, please visit: Reports 1. January 27, 2014, London s Music Industry Strategy 2. March 31, 2014, London s Music Industry Strategy- Update (Memo) 3. April 14, 2014, London s Music Industry Strategy- Terms of Reference 4

5 Result Aligned Strategy Achievement A Strong Economy; Invest strategically in public facilities Celebration Centre/Mixed Use Development Establish a focused strategy for the downtown Build partnerships with key private, institutional and community partners. A Vibrant and Diverse Community; Strengthen and embrace London s diversity and cultural identity Preserve and celebrate arts, culture and heritage Build the vibrancy of the downtown including special events. A Sustainable Infrastructure; Invest in community infrastructure such as housing, parks, and recreation centres. A couple of different business plan submissions have been received from the project proponents and have been reviewed by staff. Arranged and held 2 public participation meetings late Numerous meetings with various performance venue operators took place that assisted with understanding the complex nature of building and managing a PAC. Also, extensive research was undertaken that looked at various Performing Arts Venues across Canada, with special attention to Ontario (in total summarized 18 performance venues). Furthermore, Civic Administration received an updated business plan form the project proponents in May of 2014, and is currently in the process of analyzing the most recent submission Celebration Centre/Mixed Used Development. As a result, is recommending in a July 21 st, 2014 report that in order to assist with the evaluation of a Performing Arts Centre proposal, City Council approve the: Market Analysis; Facility Program and Design Criteria; and the Site Analysis and Criteria studies, which are to be completed by Novita. The undertaking of the studies is intended to show that the City is seriously considering the development of a new music and entertainment facility, as these studies will assist not just the project proponents but also the City to properly evaluate the proposed plan. The next steps are dependent on Council direction. 5

6 Result Aligned Strategy Achievement Reports: 1. November 4, 2013: Mixed-Use Development Including a Performing Arts Centre Review of Proposals and Public Input. 2. December 2, 2013: Mixed-Use Development Including a Performing Arts Centre Update. 3. February 24, 2014: Mixed-Use Development Including a Performing Arts Centre: Business Plan Proposed Conditions. 111 Horton Street Redevelopment A Strong Economy; Establish a focused strategy for the downtown Build partnerships with key private, institutional and community partners. A Vibrant and Diverse Community; Build the vibrancy of the downtown including special events Invest in neighbourhoods. A Green and Growing City; Protect our natural heritage and environment Promote a green culture and the fundamentals of sustainability Develop walkable, connected communities with great public spaces. 4. July 21, 2014: Mixed-Use Development Including a Performing Arts Centre: Business Plan Proposed Conditions Update. On May 20, 2014 Civic Administration was directed by Municipal Council to continue to investigate and work with identified project stakeholders in order move the proposed project forward. As a result, the City of London has entered into more formal discussions with Kilmer Brownfield and London Hydro regarding the potential sale and redevelopment of the land at 111 Horton St. East. In order to facilitate the redevelopment of the Property, there are a series of gates that Kilmer and/or the City of London must undertake in order to fulfil the regulatory requirements and overcome the site constraints. As Identified in the report there are 5 gates, of which gate 2 includes the Subject Land Status Report, the Reach Study, the Ownership of Land, and the London Hydro Relocation, will move forward as concurrent gates; we are currently evaluating gate 2. 6

7 Result Aligned Strategy Achievement Interdisciplinary team has been created; gap analysis taking place; non-disclosure agreement endorsed on June 24, 2013; communication among Kilmer Brownfield, Labatt's, London Hydro and Upper Thames River Conservation Authority ongoing. Terms of reference for REACH study have been complete; RFP has been issued and completed; Draft Reach Study Report (Phase I) has been received, in the process of finalizing the Reach Study (Phase I). Reports: 1. June 24, 2013, Prosperity Projects: 111 Horton St. Redevelopment Opportunity Non Disclosure Agreement. 2. May 14, Horton Street Redevelopment MOU (In-camera report) 3. May 14, 2014, Prosperity Projects: 111 Horton Street East: Redevelopment Opportunity. Medical Innovation and Commercialization Network A Strong Economy; Develop our skilled workforce Build partnerships with key private, institutional and community partners. A Caring Community Increase the health and well-being of all citizens Support individuals at all stages of life, from newborns to the elderly, and from newcomers to the established. Originating from proposals brought forth by St. Joseph s Health Care Foundation and London Health Sciences Foundation though the IEPC prosperity process, a potential medical research fund was presented in the December 18, 2012, A Path to Prosperity: Community Business Ideas to Stimulate our Economy. Through community engagement and consultation with experts in relevant fields, feedback was received and a unique opportunity evolved: London s Medical Innovation and Commercialization Network. This network would build on London s existing competitive advantages in musculoskeletal disease, biomedical devices and image based medicine. 7

8 Result Aligned Strategy Achievement The vision for LMICN was supported in principle subject to the preparation of a governance structure. The draft London Medical Innovation and Commercialization Network Governing Council Terms of Reference, were endorsed by Municipal Council on October 23, 2013; Administration assisted with formalizing the Terms of Reference; as well as with the development of applications for additional project funding (Fed. Dev.). In March of 2014, Council was presented with the LMICN Strategic Plan, and was received by Council April1, On July 21st, 2014, Municipal Council will be presented with making a decision with respect to authorizing the London Medical Innovation and Commercialization Network Grant Agreement., prepared by Tom Corbett of Advocates LLP, External Legal Counsel; in order to finance the this project, in the amount of $10 million to activate the network and result in the immediate leveraging of $10 million from Western University, and an additional commitment of $10 million over ten years. Reports: 1. July 29, 2013: London s Medical Innovation and Commercialization Network Vision. 2. October 15, 2013: London s Medical Innovation and Commercialization Network Update #1. 3. July 21, 2014: London Medical Innovation and Commercialization Network-Grant Agreement. 4. July 21, 2014: LMICN-Grant Agreement-In- Camera Report 8

9 Result Aligned Strategy Achievement A Strong Economy; Employment Network Support Develop our skilled workforce Build partnerships with key private, institutional and community partners. A Caring Community; Increase the health and well-being of all citizens Provide effective and integrated community based social and housing supports Support individuals at all stages of life, from newborns to the elderly, and from newcomers to the established. On June 11, 2013, Municipal Council approved the Employment Program Support, on a pilot basis for one year, with the Employment Sector Council London Middlesex and the London Middlesex Immigrant Council, with an option to extend the pilot for one (1) additional year, based on the year-end update and subject to a source of financing. It is anticipated that an up-date report, that analyzed the pilot projects year end results, will be presented to Council at the end of August 2014, where a recommendation will be presented whether an additional year of funding is appropriate. Report: May 21, Grant Agreement: Employment Program Support. Other Reports/Initiatives 1. January 28, Investment and Economic Prosperity Committee Proposal Assessment Process Update. 2. January 28, D.A.P.S. TROPHY, IBM-Western University Industry Problem Solving Workshop. 3. February 19, Investment and Economic Prosperity Proposal Assessment Process Update #2. 4. April 29, Investment and Economic Prosperity Project Updates. 5. May 21, Investment and Prosperity Projects-Public Input. 6. June 24, Job Creation and Wealth Generation Project Listing. 7. December 2, Western University _IBM Industry Problem Solving Workshop. 8. Assisted with and became part of the judging panel for the Western University Industry Problem Solving Week (February 2014); IBM and Western University Industry Problem Workshop with a data analytics focus. 9

10 What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies and avoiding costs. What is the future direction of this service? Given that the Investments and Partnerships service area is only in the 2 nd year of operation, current objectives and milestones are the primary focus. As this area matures, future objectives and milestones will be added. For the foreseeable future, the service drivers identified in the current state section will continue to impact the delivery of this service in the future. With many companies building their businesses around partnerships, looking forward, the Corporate Investments Team will focus on initiating and managing strategic relationships. Looking forward the Corporate Investments team will: Identify new business opportunities (new strategic partnerships, not limited to businesses) Prioritize new business opportunities (compare the potential returns of each new opportunity to the costs the City would incur to exploit it) Bring select new opportunities that have been identified and prioritized to Council for consideration (by working in collaboration with various internal/external partners) The Corporate Investments Team receives new ideas and proposals which are to be analysed on an ongoing basis. The process that is undertaken has to be independently created by the team and involves the following steps: Proponents are requested to complete a due diligence checklist. Proposals and checklists are reviewed using a business centred approach focused on economic development. An analytical tool containing 23 criteria directly related to the stated objectives is applied. City of London financial constraints are considered. A recommendation is presented to Council. 10

11 What future initiatives can be contained within the maintain existing service level budget? 2015 Budget Goal: Support the Development of the City s Economic Development or Prosperity Strategy Action Steps: Serve as a resource and identify appropriate stakeholders, who will be engaged in order to contribute to the development of the Community Economic Strategy. Goal: Support the evaluation and review of potential business ideas presented to the City of London in an objective, fair and efficient manner. Action Steps: Evaluate all Investment and Economic Prosperity ideas/proposals through the use of the developed evaluation process and appropriate evaluation tools, as approved by Council. Developed a transparent, fair and efficient investment proposal evaluation process intended to serve as a guide for project/idea evaluation that will aid in the analysis of new proposed investment ideas, which includes: Primary Analysis Tool: Due Diligence Checklist Secondary Analysis Tool: Prospect Ranking Tool Score Card Secondary Proposal Project Evaluation Timeline Goal: Support internal business plan and business case development by working with appropriate project proponents and/or stakeholders in order to develop and/or aid with the development of project business plans; related to Investment and Prosperity ideas/proposals. Action Steps: Perform thorough research, and prepare a comprehensive business plan where appropriate, and/or as quested by Council. Work closely with project proponents and/or stakeholders and provide any assistance that may help with the development a formal business plan/case. The assistance may be given through telephone conversations, and/or face-to-face meetings. 11

12 Goal: Seek out new investments, partnerships and business opportunities for the City of London by actively pursuing and following up on potential Capital Investment leads. Action Steps: Actively engage in community events, conferences, and business meetings. Seek out and pursue new investment opportunities through newly developed relationships. Goal: Continue to provide economic development information on the Prosperity for London website in order to ensure that the Prosperity for London website is updated on a regular basis with up to date/accurate information as it relates to select economic development projects/ideas. Action Steps: Prepare updated and accurate project information summaries. Work collaboratively with the ROMD ǀ Marketing and Design team to ensure that the content posted on the Prosperity for London website is updated promptly. Encourage and solicit public feedback through the prosperity website and prosperity@london.ca address. Goal: Undertake information gathering through local economic development partners and other stakeholders to provide updates on major city funded projects to ensure that Council, Civic Administration and all members of the local community are updated on a quarterly basis, as it relates to select Capital Investment Projects. Action Steps: Gather project related information through: telephone conversations, , in-person meetings, published articles, social media, and any other means that will provide the information that is being sought after. Develop a project summary timeline that will outline the various project phases; from concept to closing. Develop a high level summary overview page that will include the project description, status update, next steps, the associated costs, and the return. 12

13 Forecast Continue with all the items identified above, where appropriate. Key Performance Indicators How Much? Description of measure Number of proposals managed New Initiative (London Music Industry Development Strategy) How Well? Description of measure Managing the projects through the process to accomplish their identified goals. Not Not 4. Creation of a Music Strategy Not Not Is Anyone Better Off? Description of measure The projects have a potential to Create Jobs; Leverage Investment; Stimulate spin-off benefits; Build beneficial partnerships; Benefit key sectors; Fuel transformational change in London s economy. Not Not 6. A community wide comprehensive music strategy intended to promote and support music in London. Not 1 Not 1 *Please note that the 7 proposals represent 4 recommendations (Medical Innovation and Commercialization Network, 111 Horton Street East Redevelopment, Performing Arts Centre and Employment Support Network). The Industrial Land Strategy was not part of the 49 ideas that came from the community; however, it was the 5 th recommendation. 13

14 14