ICET Status Report June 7, 2010 1
ICET Region 2
ICET Mission, Objective and Vision Mission: The Trust is a partner and catalyst to build a diverse and sustainable Island & Coastal economy Objective: Primary objective is to be a catalyst to build a diverse and sustainable Island/Coastal economy Vision: North Island and Sunshine Coast successfully transition to a more diversified, globally competitive resource and knowledge-based regional economy 3
ICET Model Highlights Preference for strategic investments in projects with broad regional benefits Preference for economic infrastructure Airports, harbours, visitor & interpretive centres, trails, downtown revitalization 4
ICET Model Highlights Invest all capital in near term, to maximize economic impact as soon as possible (3-5 year time frame) Investment leverage target 1:3. Leveling the sub-regional playing field with the matching regime : Matching requirements (1:1; 1:2; 1:3) based on economic conditions and resource dependency in subregions (backed up with professional assessment of local economic conditions) 5
ICET Model Highlights ICET reviews how many permanent jobs are created per $100,000 of ICET funding for selected major projects should exceed 3 permanent jobs per $100,000 ICET funds Major projects are outsourced for independent economic assessment and detailed analysis to verify economic benefits 6
ICET Model Highlights Project applicants must demonstrate sustainability i.e. projected operating revenues and costs in balance when projects exceed $250,000 ICET contribution Application intake is continuous RAC reviews quarterly Board meets monthly 7
ICET Model Highlights Projects must be incremental and ICET is the tipping point. No financial support provided directly to private companies or projects High level of transparency via ICET website, announcements, newsletters, annual reports 8
ICET Model Highlights Eligible project applicants include public sector entities, non-profit societies, First Nations, but not private sector applicants. Other types of ICET funded projects includes marketing the region and communities, support to small business, special partnerships etc. 9
Approved projects to present More than 200 project applications reviewed since March 2007 Board has approved 70 projects for Stage 2 Leverage of the ICET investment on approved projects to date: 1:4.59 ICET investment leverage target: 1:3 10
Representative Project: Nanaimo Airport Expansion (Transportation & Econ Dev) ICET $5 million; total project cost $24.2 million (1:3.84 investment leverage) Airport will generate the following economic impacts by 2016 - Over 1,100 full time positions (direct and indirect) - Over $78 million gross revenues p.a. 11
Representative Project: Port McNeill Waterfront Redevelopment (Economic Development) - $ 8 million budget; ICET $3.5 million (1:2.71 investment leverage) -81 local jobs created by 2015; 27 additional Provincial jobs - 21 person-years of employment during construction (2008-2010) - Provincial GPD during construction: $5.4 million - Provincial GDP upon completion: $5.1 million p.a. 12
Representative Project: Quatse Salmon Stewardship Centre at Port Hardy (Tourism) $1.4 million total cost: $175,000 ICET share (1:7 investment leverage) 10 new FTEs 13
Representative Project: North Coast Trail Cape Scott Provincial Park (Tourism) $928,000 total cost: ICET$ 249,920 (1:2.71 investment leverage) Estimated to attract 4,000 visitors in the first year growing to 8,000 visitors later Estimated 29 new FTEs for 1 day stays and 56 FTEs for 2 day stays 14
Representative Project: Deep Bay Field Station Centre for Shellfish Research (Aquaculture) Deep Bay Centre or Shellfish Research $8.6 million project: ICET contribution $1 million (1:7.6 leverage) 15 direct FTEs by year four of operations Payroll and contract services $792,000 by year 5 Increase of $66 million of current wholesale shellfish value 15
Other Projects International Centre For Sturgeon Studies Alberni Valley Visitor Centre Namgis First Nation walkway at Alert Bay Stamp River Trail in Alberni Valley Mt Washington Biathlon Targets 16
ICET Funding Commitments by Sectors Total: $41,376,601 Small Business $412,363 1% Olympic Opportunities $494,340 1% Economic Development $12,455,837 30% Energy $244,080 1% Agriculture/ Aquaculture $2,383,500 6% Forestry $1,239,225 3% Mining $0 0% Tourism $20,753,007 50% Transportation $3,394,250 8% 17
Total Project Value by Sector Small Business $1,786,484 1% Olympic Opportunities $834,886 0% Mining $0 0% Tourism $86,209,750 37% (Total: $231,411,015) Economic Development $109,621,290 47% Energy $976,320 1% Agriculture/ Aquaculture $14,169,319 6% Transportation $15,178,538 7% Forestry $2,634,428 1% 18
Funding Leverage Total Project Budgets $231,411,015 fdafa ad Completed Project Budgets $17,403,486 Levered Dollars $190,034,413 Levered Dollars $15,853,648 Leverage Ratio (Complete)* 10.2 Leverage Ratio (All) 4.6 *Complete totals do not include Port of Nanaimo Centre. ICET Funding $41,376,601 ICET Funding $1,549,838 19
Approved Projects by Project Size $10 million + 4 (6%) $5 - $9.99 million 6 (9%) $ 1 - $4.99 million 18 (26%) $500,000 - $999,999 11 (16%) $250,000 - $499,999 6 (9%) $100,000 - $249,999 15 (22%) < $100,000 9 (13%) 20
IMPACTS
Challenges Weak resource sectors continue to adversely impact the region Island and coastal communities unique reliance on air services, ferries, barges, sea shipping and intermodal transport for economic development Uneven capacity of local governments and NGOs for economic planning, priority setting, and project implementation
Opportunities - Keys to Success ICET works closely with local communities and mentors/coaches applicants on specific types of projects Coordinates actions and investments with other major funders Encourages development of regional thinking and cooperation Develops new partnerships to address the challenges Advocates for key regional projects Advocates the Province for additional ICET funding in future 23
ICET Future Directions Seeks replenishment of regional fund Evaluation of legislation, economic impacts, governance, community support Focus on implementation management
Questions? 25