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HomeMy WebLinkAboutAdmin-29-96REPORT #2 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON r " Pt )Vg=TP3ffff z�Isx Meeting: COUNCIL File # Date: NOVEMBER 11, 1996 Res. #L2 7-, By -Law # Report #: "29_ F #: Subject: GREATER TORONTO MARKETING ALLIANCE Recommendations: It is respectfully recommended that Council approve the following: 1. THAT Report #Admin -29-96 be received 2. THAT Council approve the recommendation to NOT SUPPORT the proposed Greater Toronto Marketing Alliance; and, 3. THAT Mayor Hazel McCallion, Chair of the GTA Mayors & Regional Chairs Committee, be advised of Council's decision at their November 15,. 1996 meeting. 1.0 BACKGROUND 1.1 At the October 15, 1996 meeting of Council, correspondence was received from Mayor Hazel McCallion, Chair of the GTA Mayors & Regional Chairs Committee, regarding the proposed Greater Toronto Marketing Alliance. At this meeting Council passed the following resolution: "THAT the correspondence dated October 1, 1996, from Hazel McCallion, Mayor, Chair, GTA Mayors & Regional Chairs, regarding the Greater Toronto Marketing Alliance - A Public/Private Partnership, be received; RECYCLED�� THAT the correspondence be referred to the Chief Administrative Officer and appropriate staff to review and preparation of a report to be submitted to the General Purpose and Administration Committee FORTHWITH; and, THAT Mayor Hazel McCallion be advised of Council's decision. " 1.2 In compliance with the direction of this resolution, staff have reviewed the GTA Marketing Alliance proposal and have prepared this report for Council's review and consideration. A copy of the GTA Marketing Alliance proposal, as it was presented to the GTA Mayors & Regional Chairs Committee, has been previously circulated to all Members of Council for review. 2.0 THE GREATER TORONTO MARKETING ALLIANCE - PROPOSAL 2.1 The Greater Toronto Marketing Alliance proposal (Attachment 1) was prepared jointly by the GTA Economic Development Partnership Business Plan Committee and the Greater Toronto Boards and Chambers Alliance Go Forward Team. It should be pointed out that not all members of the GTA Economic Development Partnership (to which the Municipality of Clarington belongs) were involved in the development and presentation of this proposal. The individuals involved in the development of the proposal and their affiliations are as follows: NAME AFFILIATION Rob Milligan Office for the Greater Toronto Area Karen Campbell City of Mississauga Patrick Olive Region of Durham Ian Bromley Metropolitan Toronto Brenda Librecz City of Scarborough Brad Henderson Metro Toronto Board of Trade Bob Christie Metro Toronto Board of Trade Dean Morrison Mississauga Board of Trade Peter Mitchell Oshawa/Clarington Chamber of Commerce Barb Scollick Richmond Hill- Board of Trade Cliff Hockins Markham Chamber of Commerce Bob Malcolmson Brampton Board of Trade Greater Toronto Marketing Alliance Implementation Task Force - Members 2.2 The goal of the Greater Toronto Marketing Alliance, as proposed by the above named individuals, is to attract new investment dollars to the region. There are 3 specific objectives: (a) Generate more business and wealth in the region; (b) Increase the number of jobs and employment opportunities for residents of the region; and, (c) Improve the assessment base and, thereby, impact positively on municipal tax rates and the provision of municipal services. The proposal goes on to point out that through aprivate/public partnership the marketing strategy will take advantage of the assets that each partner would bring to the table. It makes the point that the challenges of competing in the global market requires an agency that can draw on the assets of the public and private sectors. Sections 2 and 3 details the proposed Conditions for Success and the Mission Statement for the Greater Toronto Marketing Alliance (GTMA). Sections 4 to 6 outlines a regional plan for Investment Attraction, Information Collection and Dissemination and Support to Municipal Economic Development Initiatives . 2.3 Section 7 outlines the proposed Corporate Structure of the GTMA and the relationship between the public and private partners as well as the GTMA itself and the local Economic Development Offices. The initial GTMA would work with and report to a Board of Directors who (according to the organizational schematic on page 13 of the proposal) would report in some way to the Province (most likely the Ministry of Municipal Affairs and Housing). The initial Board of Directors would be composed of 16 members - 8 from the public sector and 8 from private. The GTMA would hire a General Manager who would direct all staff and report directly to the Board of Directors. The 8 representatives from the public is broken down as follows: Five Municipal Elected Officials (local/regional) -one from each of the five regions of the GTA; two from the Economic Development Liaison Team (approved by the GTA Mayors & Regional Chairs Committee); and, one from the Province. Selection from private enterprise is not detailed but it would likely be drawn from the Greater Toronto Boards and Chambers Alliance Go Forward Team. The proposal also speaks of a General Manager who would not be a member of the Board of Directors and the method of hiring is not outlined but it can be assumed that it would be an open competition for this position. 2.4 In addition to the Board of Directors and the General Manager, there would be 2 liaison teams - Greater Toronto Economic Development Liaison Team (made up of municipal, provincial and federal economic development representatives from the GTA) and the Greater Toronto Boards &Chambers Liaison Team (representing their respective organizations and the private sector in the GTA). The liaison teams would provide a formalized communications network between the General Manager of the GTMA and the partner organizations and municipalities. The members of the individual Liaison Teams would provide input into the strategic marketing plan and annual work plan and they would also be responsible for keeping their representative organizations/municipalities informed as to projects and initiatives being undertaken by the Alliance. The proposal provides a schematic as to the flow of information and responsibilities between the Alliance, the Board of Directors and the individual Liaison Teams - a copy, Attachment 2, has been attached separately for easy referral and review. 2.5 Section 8 of -the proposal (Budget & Work Plan) outlines the financial and funding aspects of the entire initiative. It relies heavily on the sharing of operational costs between the private and public sectors. In this section each partnering sector has to finance 50 % of the total operational costs which is estimated at approximately $1.5M per year. The cost sharing for the public sector states that $100,,000 is to be contributed by the Office for the Greater Toronto Area and the Ministry of Municipal Affairs & Housing with the five regions (York, Peel, Durham, Metro Toronto and Halton) contributing another $400,000 for the initiative. It is assumed that each Region would further breakdown this contribution to be shared among its member municipalities. 2.6 In her correspondence to Council, (Attachment 3) Mayor Hazel McCallion has asked Clarington's Council to pass resolutions for action based on the GTA Mayors & Regional Chairs Committee's individual 6 -part resolution. Specifically Council is being asked to pass resolutions to deal with specific recommendations of the report as follows: "(2) THAT the GTA Mayors & Regional Chairs seek resolutions form their respective Councils supporting the formation of the Greater Toronto Marketing Alliance and that these resolutions be forwarded to the Chair of the GTA Mayors & Regional Chairs Committee prior to November 15, 1996; (3) THAT the municipalities in each Region nominate a representative to sit on the Board of Directors and that the names of the nominees be forwarded to the Chair of the GTA Mayors & Regional Chairs Committee prior to November 15, 1996; and, (4) THAT the GTA Mayors &Regional Chairs encourage their respective Councils to allocate the necessary funds to support the Greater Toronto Marketing Alliance in their 1997 budgets. " 3.0 DISCUSSION 3.1 The Municipality of Clarington is being asked to support the creation of a specialized marketing agency - one that will globally market the Greater Toronto Area member municipalities abroad. In supporting this program, the Municipality of Clarington will be financially supporting the creation of a "super" agency to market the advantages of business investments and relocation/expansion in the GTA region. 3.2 The obvious discrepancy between the size and service opportunities of the particular municipalities within the GTA clearly dictate that municipalities the size of Clarington will not receive the same type of economic development opportunities as will the likes of Mississauga or North York, for example. It is true that Clarington will not be contributing the same dollars as those municipalities, but what must be assessed is, how much, if any, pay -back there will be to Clarington to participate financially in this project. 3.3 The Region of Durham will be responsible for an $80,000 contribution for the GTMA initiative to go forward. The current plan is that the Region of Durham will fund 50% or $40,000 of the total amount. The remainder would be shared by the member municipalities using the formula that the northern municipalities (Scugog, Brock and Uxbridge) would contribute a total of $5,000 with the southern municipalities (Pickering, Ajax, Whitby, Oshawa and Clarington) contributing the remaining amount (ie. approximately $8,000/municipality). This would be over and above what each municipality already budgets for, Economic Development activities and initiatives. Presently the Economic Development efforts of Clarington are supported by both Clarington and the Region of Durham. The Municipality budgets approximately $214,247 specifically for Economic Development (including salaries, benefits and administrative costs) . Looking at the Region of Durham's budget, the Municipality of Clarington contributes approximately 4% of each dollar spent by the Region. The Region's Economic Development budget (1996) is $607,550 - of that approximately $24,302 is the 4% contributed by Clarington tax payers. The Municipality also pays approximately $ 1,500 per year to be a member of the GTA Economic Development Partnership. Therefore, Clarington currently spends $240,049 each year on economic development initiatives. With the GTMA proposal, economic development costs would become: —Municipality of Clarington —Clarington's portion of the Region's budget - >Clarington' s GTMA fee Clarington' s portion of the Region's contribution TOTAL $ 214,247 (anticipating a 0% increase) $ 249302 (4% of $607,550) $ 8,000* $ 1,600 (4 % of $40,000) $2489149 *NOTE: The current Economic'Development Partnership fee of $1,500 would no longer be required. The new fees may not include participation fees in specific trade shows that are traditionally attended by the members of the GTA Economic Development Partnership. For example the GTA Economic Development Partnership attended a show in Detroit last spring. Each municipality was responsible for their own expenses in producing and getting information to the show and manning the booth. There has been no indication that the new fee would include or incorporate this type of activity. If $5,000 were to be budgeted for participation in trade shows, the Municipality of Clarington's commitment to the creation of the GTMA is no longer $ 8,000 - it is closer to being $15,000 ($8,000 + $1,600 + $ 5,000) per year and could be subject to increase in future years. 3.4 The establishment of a Greater Toronto Marketing Alliance comes at a time when not only the Greater Toronto Area Municipalities, but all of the municipalities within the Province of Ontario are undergoing severe changes as a result of actions flowing from the Provincial Department of Municipal Affairs. The creation of the "super city" concept that would see the Metro municipalities be rolled into one large city could very well have an overpowering effect on any Greater Toronto Marketing Alliance Program. Another unknown factor in the future of the GTA is the report from the "Who Does What" panel chaired by David Crombie. Should this panel recommend pooling of all commercial and industrial assessment from municipalities across the Province, controlled by the Province, and spent on services other than economic development projects, all municipalities would be called upon to rethink their present and future economic development programs. The unknown factors surrounding these items prohibit them from being a part of Council's deliberations in dealing with the Greater Toronto Marketing Alliance. However, the fact that there is a number of changes on the municipal horizon, should call for a conservative approach to additional spending in the area of economic development beyond the boundaries of the Municipality of Clarington. 3.5 Given all of the above, it is clear that there are still a number of unanswered questions in identifying the benefits to Clarington should support be given to the Greater Toronto Marketing Alliance initiative. 4.0 SUMMARY 4.1 It goes without saying that any economic development program in the Greater Toronto Area would benefit the Municipality of Clarington in some way. However, the question must be asked, especially in times of fiscal restraint, how much of a direct return to the Municipality will result from the Municipality's support of the project and how will such a return be measured. There is no guarantee that the Municipality of Clarington will have a direct voice into the projects of the Greater Toronto Marketing Alliance and will simply be left with writing an annual cheque for its share of the operational costs with little or no return to the commercial and industrial assessment base within the Municipality. 4.2 As previously stated, the next few years will see great changes in the operation of Ontario's municipalities and the Municipality of Clarington could very well be faced with a reassessment of its role within the Greater Toronto Area. 4.3 It is the writer's opinion that this is not a time to spend economic development dollars outside of the Municipality of Clarington with hopes of a positive return for the tax dollars expended. Council has been advised that, staff is presently preparing a 1997 operating budget that could very well see additional cuts in service and possibly staff as a result of recent Provincial cut-backs. As the position of Economic Development Officer has not been filled during 1996, the vacant position will be under close scrutiny in an attempt to reduce expenditures in the 1997 budget. In light of the present fiscal control program of the Municipality and considering the fact that there are many unknown questions surrounding both the operation of the Municipality of Clarington and its economic development program, it is respectfully recommended that Council not support the creation of the Greater Toronto Marketing Alliance at this time. Respectfully submitted, W. H. Stockwell, Chief Administrative Officer t t ATTACHMENT #3 TO REPORT ADMIN.29-96 MISS/8 g •r A r 9p0RAT�Q OFFICE OF THE MAYOR VIA FAX October 1, 1996 ALL GTA MAYORS and REGIONAL CHAIRS Attached please find the three Resolutions which we passed at the September loth GTA Mayors & Regional Chairs Committee meeting regarding the Greater Toronto Ma.zketin ; Alliance. I would bring to your attention points 2. 3. and 4. of the first Resolution wb :ch require action on your part. I shall be sending out the Report as stated in point 5. In the second Resolution, I shall be writing to the Premier, Minister of Munic; pal Affairs & Housing, and also to the Prime Minister with respect to funding contributions. Tha* you For your co-operation in ensuring that the recommendations are e) eeuted and reported back to my office. Sincerely, es ZEL McCALLION ene: 3 MAYOR CHAIR, GTA MAYORS & REGIONAL CHAIRS _ _ `,. ......... GTA MAYORS & REGIONAL CHAIRS COMMITTEE MEETENG FRIDAY, SEPTEMBER 207 1996 RESOLUTION GREATER TORONTO MARKETING ALLIANCE - A PUBLIC/PRIVATE PARTNERSHIP 44THE GTA ECONOMIC DEVELOPMENT PARTNERSHIP recommends the fo lowing: 1. THAT the GTA Mayors & Regional Chairs Committee endorse the Greate r Toronto Marketing Alliance Deport dated August 1996, as the basis for th( Creation of a public-private marketing agency; 2. THAT the G'S'A Mayors &- Regional Chairs seek resolutions from their gyres )ective Councils supporting the formation of the Greater 'Toronto Marketing Allis rice and that these resolutions be forwarded to the Chair of the GTA Mayors & Re; ;conal Chairs Committee prior to November 15, 1996; 3 THAT the municip alitics in each Legion nominate a represent dative to sit o I the hoard or Directors and that the names of the nominees be forwarded to the Chair of the GTA Mayors & Regional Chairs Cornmittce prior to November 15, 19!'6; 4. THAT the GTA Ma ors and Inc ionai Chairs encourage their respective Councils to allocate the necessary funds to support the Greater Toronto Marketing Alliance in their 1997 budgets; S. THAT the Chair or the OTA Mayors & Regional Chairs Committee forward the Greater Toronto Marketing Alliance Report to the Premier and the Minis'. ers of Economic Development Trade & Tourism, and Municipal AtTairs & Housi ng requesting additional Provincial assistance ror the agency through the Job and Growth Fund announced in the 1996 budget; 6. THAT the GTA Economic Development Partnership continue to work wici the Greater 'Toronto Boards & Chambers Alliance to develop an implem entat on strategy for the creation of the agency." CARRIED �1 1' Myr+1cIpanties of the Gejsei T9,v-4- �►� GTA MAYORS & REGIONAL CHAIRS COMMITTEE MEETING FRIDAY, SEPTEMBER Z0, 1.996 RESOLUTION GREATER TORONTO MARKETING ALLIANCE - A PUBLTUPRIVATE PARTNERSHIP "WHEREAS other North AmericRn regions that provide the economic developme at in competition with the GTA have budgets that far exceed our proposed GTA Mark! :ting Alliance; AND WHEREAS the origins of the GTA Economic Development Partnership grid marketing initiatives was based upon 501-5,0 funding of the economic development promotions between the G'S'A municipalities and the Province; THEREFORE be it resolved that we strongly recommend the Province commit a, otal budget of S 400,000, to match the municipalities S 400,000 to b'c supplemented by ' he private sector; THAT the Office or the GTA Minister of Municipal al Affairs and Housing and the ?rovincial Premier be sent this request for the new Provincial Growth Fund; and THAT the Federal Government beapproached to becomea, partner and contribu :e a similar amount of funds.'' CARRIED 1r1 un IcfpiJ Mss o t MC Wo Grcgcf Toronto Area — . - - - - - • - - -- - — '- I .te a , i v as ' ' I % l"ZXA\ 1 _ N %.7 A. %—#.L 1 %J11% LV -J V V ..i ! V U v CTA MAYORS & REGIONAL CHAIRS COMMITTEE MEETING FRIDAY, SEPTEM13ER 20, 1996 RESOLUTION GREATER TORONTO MARKETING ALLIANCE - A PUBLIClPRIVATE PARTNERSHII 44 THAT the Board of Directors develops as a high priority a strategic marketing pl in for presentation to the GTA Mayors & Regional Chairs Committee and to the Great!.,r � g Toronto Boards & Chambers AIliance together with a report on bench marking a nd indicators that could be used for evaluating this initiative." CARRIED M lowGrtmt# Terewte Asci Municipality of Clart*n19to n 40 Temperance Street Bowmanville, Ontario LIC 3A6 Phone: (905) 623-3379 Fax: (905) 623-4169 FAX MESSAGE ATTENTION.• :% COMPANY.- (�s .,, is �'�i�.�., �� v o � �g,�rr m N s� e, TIMESENT LAL ADDRESS: FAX NUMBER: JCZI? '' ,/' 6� L2 NUMBER OF PAGES INCLUDING COVER PAGE: o� For your information For your comments Hard copy will follow by mail Patti L. Barrie, A.M. C. T. Clerk Per: '} J�-- rz Z-9 --� -