City of Saint John Growth Committee - Open Session AGENDA Wednesday, November 16, 2016 8:30 am 8th Floor Boardroom, City Hall Pages 1. Call to Order 1.1 Introductions and Meeting Overview: Mayor Darling 1-4 1.2 Discover Saint John 1.3 Enterprise Saint John 1.4 Coffee Break @ 10:00am 1.5 Saint John Waterfront Development 5-38 1.6 Saint John Industrial Parks 1.7 Concluding Remarks: Mayor Darling 1.8 Date of Next Meeting 1
Growth Committee Economic Development Agency Engagement November 16, 2016 Session Agenda 8:30-12:00 pm 8 th floor Boardroom, City Hall 1. Introductions and Meeting Overview: Mayor Darling 8:30-8:40 am 2. Discover Saint John 8:40-9:20 am 3. Enterprise Saint John 9:20-10:00 am 4. Coffee Break 10:00-10:10 am 5. Saint John Waterfront Development 10:10-10:50 am 6. Saint John Industrial Parks 10:50-11:30 am 7. Concluding Remarks: Mayor Darling 11:30 am 1
Meeting Preparation The City s Growth Committee is hosting an engagement session with its four City funded agencies to understand your respective service level priorities for 2017 and to discuss opportunities for greater collaboration in particular as it relates to advancing priorities of the Growth Committee and Common Council. This information will support the development of the City s 2017 operating budget and inform the Growth Strategy being developed by the Committee to advance a growth agenda for Saint John. A set of questions has been prepared to guide the discussion with the agencies and these are provided below to enable preparation for the meeting. To manage the meeting effectively, each of the agencies will have 40 minutes for discussion which includes 25 minutes to address the following five questions and 15 minutes for other follow-up questions and discussion. The Executive Directors of the agencies are also invited to bring a representative of their respective Boards to participate in the meeting. Should you wish to submit any presentation or written materials, the Committee would request that these be provided to the Clerk s Office by end of day Monday November 14, 2016. Please be advised that this session is being held in an open meeting of the Growth Committee. 1. Please share information on your current mandate, focus areas and resource requirements for 2017. Discuss what opportunities you see for alignment with the priorities adopted by Common Council for 2016-2020 (document is attached). 2. The City of Saint John intends to issue mandate letters for all of its agencies, boards and commissions. Please share with us your perspective on how these service expectations and related targets for the economic agencies should be formulated, monitored and evaluated over the year? 3. What are your 2017 targets associated with the key performance measures defined by Common Council and the Growth Committee 2
specifically including population growth, job creation and tax base growth? 4. Common Council adopted the recommendations of the Task Force on Economic Development recommendations in early 2016. Please share with us what actions your agency has taken and what actions you intend to take in 2017 to advance the recommendations adopted by Council: a. Creation and participation in a permanent inter-agency task force on cost-saving? b. Further integration of urban development and real estate functions amongst partners? c. Further integration of communications and marketing efforts? d. Further integrated strategy on investment attraction? e. Ongoing information sharing and cooperation between the four agencies and other economic development partners in Saint John? f. Integrated strategy on immigration development, recruitment and retention? 5. How can the economic development governance structure be optimized in Saint John to deliver maximum growth for the City of Saint John? 3
Council s Priorities: 2016-2020 Through good governance and with the support of the community, our focus is on growing Saint John. By being fiscally responsible, the City delivers services that contribute to a vibrant, attractive and prosperous city. Growth & Prosperity Vibrant, Safe City Valued Service Delivery Fiscally Responsible Saint John is recognized by residents and businesses as a positive and supportive city. We grow in a smart way and attract talent, innovation and opportunities so all people can thrive. Saint John is home to unique, livable neighbourhoods that offer a variety of housing options and appropriate transportation choices. Residents celebrate our history, enjoy a variety of cultural and recreation activities, and appreciate our greenspaces and waterways. Saint John invests in sustainable City services and municipal infrastructure. Our community is engaged and understands what they can expect from service delivery. Saint John takes a strategic approach to financial management that is equitable, balanced and efficient. Decision-making is in line with our strategic plans to ensure our financial sustainability. GrowSJ Great Neighbourhoods Asset Management Financial Health Drive development in accordance with PlanSJ that creates density required for efficient infrastructure and services. Promote Saint John as a community to live, work and play to grow the residential tax base. Advocate for equitable taxation among residents, commercial businesses, institutions and industry. Strong Economy Ensure Saint John has a competitive business environment for investment. Support the retention and attraction of businesses that create job opportunities. Develop neighbourhoods through planning that aligns with PlanSJ and includes: Accessible, reliable and cost-effective public and active transportation Streetscape beautification Modernization of heritage preservation processes Park and greenspace investment that aligns with PlaySJ Ensure that the delivery of efficient public safety services address the evolving needs of a growing community. Vibrant City Invest in arts, culture and recreation experiences that create a sense of community pride. Develop an integrated asset management plan that aligns with PlanSJ to prioritize investment. Invest in strategic road improvements. Customer-Focused Services Explore service improvements through innovation, technology and developing partnerships with other organizations. Define service levels for all City services. Implement mandate letters with the City s agencies, boards and commissions to define expectations. Develop long-term sustainable financial plans and budgets that align capital investment and fiscal capacity with service objectives. Investigate options to allocate water costs among ratepayers. Report on performance metrics to show effective service delivery and good fiscal management. Innovation and Improvement Advance a culture of continuous improvement to drive operational efficiencies. Leverage opportunities to generate alternative revenue sources. Key Performance Indicators Key Performance Indicators Key Performance Indicators Key Performance Indicators Building permit values (Primary Development Area and city) Change in tax base assessment within the city Percentage of fire incidents contained to the point of origin Crime incident trends Pavement Condition Index (Ratio of lane-km in good or satisfactory condition) Reliability of water and wastewater systems Total debt as a percentage of annual revenue Revenue from own sources as a percentage of total revenue Return on investment from development incentives Change in population Change in number of new businesses in the city Resolution rate for property issues related to bylaws Participation at arts, culture and recreational events Number of City-supported community-led programs and initiatives Work request completion ratio (# requests completed to # requests entered) Infrastructure deficit Capital from operating as a percentage of operating budget Percentage of continuous improvement savings in relation to stated targets 4
5 November 16, 2016
Incorporated by an Act of the Legislative Assembly 1980 (Companies Act) Governed by a Board of Directors (9) comprised of City of Saint John, Government of Canada and Province of New Brunswick 2 full-time employees (P/T Project manager), and team of volunteers 6
to develop, implement, manage or operate or cause the development, implementation, operation and management of a project for the development and redevelopment of certain lands in the City Centre District of the City. to develop, promote, encourage, co-ordinate, assist and advance the commercial, residential, recreational, cultural, social and economic welfare of the City of Saint John in the City Centre District. to carry on business, either as principal or agent, of general contractors, builders and developers and to develop, construct, execute, own and carry on all descriptions of work, both public and private, and to enter into contracts for the same. to buy, acquire, exchange, lease, improve, invest in, and manage property to act as agents, consultants, rental agents, managers or financial agents in connection with any business carried on by the Corporation. 7
Administration and management several leases, sub-leases and air-space parcels Hilton Hotel, PNB Seniors Housing, Non-Profit Housing, York Point and Robertson s Wharf Condominiums Market Square and MS Parking Garage Asset management: Market Square Complex Seawall Courtyard, boardwalk Floating docks MS Parking Garage Loyalist Plaza Smythe Street 8
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Boardwalk Loyalist Plaza 10
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Market Square Parking Garage 12
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Current Annual budget: $504,000 Current % of total CoSJ ED investment: 13.6% Relationships: works closely with CoSJ, PNB, GoC & several other internal and external agencies Primary Focus Management of Market Square Parking Garage and Market Square. Purchase and sale of urban core real-estate. Development of urban land specific projects & master plans. Uptown/Waterfront economic development infill strategy, investment attraction, research/creation urban reports 15
MS Head Lessor asset management Insurance seawall & surrounding property Snowplowing Maintenance boardwalk & courtyard Audit & Legal services Salaries & admin Cathodic protection CCG Buildings CCG property tax Fundy Quay Infill Strategy Investor/developer recruitment Urban Development Report Eco-Hubs Salaries/Admin Partridge Island Advocate for urban development Project planning $190,000 $85,600 16
Market Square Complex Harbour Station Pedway system City Market refurbishment Harbour Passage Ecological Hubs St. Andrew s Park Three Sisters Park Imperial Theatre Boardwalk Market Slip - docks Waterfront Courtyard Smythe St. exp. joints 17
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Fundy Quay - environmental Railing replacement (Harbour Bridge pillar) Floating dock gangway repairs Research, analysis, design Loyalist Plaza New Boardwalk and Reversing Rapids signage TD Eco-Hub commemorative plaques Technical analysis/design Harbour passage extension Repaint Harbour Passage steel structures Install Security/Surveillance System Courtyard Repainting 18 decorative light standards Install Sculpture Saint John artwork Harbour Passage Repair and enhance Boardwalk buffer zone: 21
Continuous improvement team: SJDC is working with one of the City Continuous Improvement Teams (CIT) Market Square HVAC Cost Analysis. This is a detailed analysis of maintenance and operational costs with a view towards creating new efficiencies. Lemongrass Restaurant Lease: A new lease regarding refrigeration storage in the Market Square parking garage was finalized in August. This is a 10-year lease that will generate $5,700 annually in new revenue. Market Square Parking Storage: An agreement with the restaurants at Market Square resulted in the renovation of the rear storage area (previously this was an unsightly area). The restaurant owners willingly paid for the complete renovation. 22
Barbour s General Store Lease: Negotiated a threeyear lease with seasonal revenue of $5,000. CCG Buildings SJDC is current landlord for DFO tenant at Fundy Quay. Annual revenue of $340,000. 23
Commercial property vacancy rates Commercial & residential construction costs CBRE, Cushman, Colliers & Turner Drake monthly/quarterly market reports Retail openings/closing urban core Business location surveys/reports National & international waterfront research, surveys & reports CMHC Housing Outlook reports APEC quarterly/annual capital reports STATS CAN economic reports ICSC - reports REMI building trends 24
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Fundy Quay development Urban infill strategy Loyalist Plaza funding Harbour Passage extension Eco-Hub #3 Investment attraction secure partner for tool box materials and overall strategy 27
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Identify high-value locations for urban infill Create specific property prospectus recruitment, planning & decision-making tool Meet local/external developers & entrepreneurs When appropriate, direct potential builders & developers to City Growth and Development staff 32
$200+ million private development Phased development on waterfront $4+ million annual tax revenue upon completion 33
Enhance Developer/Investor network 2017 Urban Development Report Property Prospectus documents Major developer engagement Key Urban Centres Investor/Real Estate Forums Moncton/Halifax Advocate for SJ Marketing Strategy Regular contact commercial real estate consultants, developers, investor network, other agencies 34
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