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Staff Report
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Report To: Planning and Development Committee
Date of Meeting: December 6, 2021
Reviewed By: Andrew C. Allison, CAO
File Number:
Report Number: CAO-012-21
Resolution#: PD-253-21
By-law Number:
Report Subject: Clarington Board of Trade Contract (2022 — 2023)
Recommendations:
1. That Report CAO-012-21 and any related communication items, be received;
2. That the Mayor and Clerk be authorized to sign a Purchase of Service Agreement
with the Clarington Board of Trade (CBOT) substantially on the terms set out in
Attachment 1 of Report CAO-012-21; and
3. That all interested parties listed in Report CAO-012-21 and any delegations be
advised of Council's decision.
Municipality of Clarington
Report CAO-012-21
Report Overview
Page 2
In the process of implementing the direction provided by Council, staff have been in
discussions with both staff and Board members of the Clarington Board of Trade (CBOT) to
draft the terms of a new agreement. The agreement will have CBOT continue to provide
support to local businesses through a Business Retention and Expansion program, which
will be managed by Planning and Development Services. The Attraction portion of the
municipal economic development portfolio will be delivered in-house by an Economic
Development Coordinator. Attached to this report is a draft contract that seeks to ensure that
the Municipality and CBOT are best positioned to continue to provide high -quality support to
the Clarington business community.
1. Background
1.1 Clarington has had a contract for the delivery of municipal economic development
services with the CBOT since it was incorporated in 1999. Prior to 1999, the Municipality
had an Economic Development Officer on staff who exclusively handled the portfolio.
1.2 After considering Report CAO-003-21, Council directed staff to,
(a) negotiate a renewal contract with the Clarington Board of Trade (which will
require Council approval);
(b) retain a consultant to prepare an Economic Development Strategy at an
estimated cost of $50,000 (up to 90% funded through development charges); and
(c) hire a full-time employee to assist with the delivery of the attraction services with
the cost to be covered through a reduction to the CBOT contract.
1.3 Based on this direction, staff went through a formal procurement process to retain MDB
Insight ("MDB") to prepare the Economic Development Strategy. MDB has extensive
experience in drafting economic development strategies and have done work across
Ontario, including supporting municipalities with various models of economic
development delivery. The expected delivery date for the Strategy is in early 2022.
1.4 It is important to note that the overall direction for the economic development function
will be driven through the Economic Development Strategy, Official Plan, and Clarington
Corporate Strategic Plan. CBOT will deliver the local Business Retention and
Expansion component, while the Municipality will be responsible for the Attraction and
Tourism functions.
Municipality of Clarington Page 3
Report CAO-012-21
2. Purchase of Service Agreement
Local BR+E Services
2.1 As part of its engagement, MDB met with CBOT (President, Executive Director and
Manager, Business Development) as well as Municipal Staff (Manager of Customer
Service and Tourism Coordinator). The purpose of these conversations was to (a) build
the list of BR+E services; and (b) avoid unnecessary duplication of services contracted
to CBOT and services currently offered / to be provided by the Municipality following
implementation of the Economic Development Strategy. It is important that any potential
overlap between CBOT, Economic Development Staff (Planning and Development) and
Tourism (Community Services) be identified in advance so as not to duplicate
resources.
2.2 MDB has also provided input into the Economic Development Coordinator job
description to ensure the scope and responsibilities of that position fit appropriately
within the new service delivery model.
2.3 Section 4 of the draft Purchase of Service Agreement (see Attachment 1) is based on a
list of BR+E services prepared by MDB.
Fees
2.4 Attachment 2 is a Review of Service Delivery Models prepared by MDB. It will
eventually become an attachment to the Economic Development Strategy. It includes
five case studies for illustrative purposes. The case summaries show how much each of
the studied municipalities allocate to economic development services. They also provide
many examples of key performance indicators.
2.5 The draft Purchase of Service Agreement (section 9) provides fees payable in the
amount of $325,000 in 2022 and $300,000 in 2023. The base annual amount of
$300,000 was based on an estimate of the cost to deliver the BR+E services identified
by MDB using actual figures from CBOT's 2020 economic development operations. The
total amount paid to CBOT for BR+E and attraction services in 2021 was $377,418. The
fee included in the renewal contract for 2022 includes $25,000 to cover the cost of
CBOT continuing to provide attraction services in the first three months of 2022 before
the service migrates over to the Municipality.
2.6 The contract will be managed by the Planning and Development Services Department,
through the current Community Planning branch. A key part of the contract and its
management will be an agreed upon BR+E business plan that CBOT will submit to the
Municipality before April 1, 2022. It will include a list of deliverables and Key
Performance Indicators to drive desired outcomes, which will be set based upon the
Municipality of Clarington
Report CAO-012-21
Page 4
completion of the Clarington Economic Development Strategy. The business plan will be
jointly prepared with Municipal staff.
2.7 The proposed salary (fully burdened) for a Municipal Economic Development
Coordinator is $120,605.59 (Grade 6 on 2022 staffing grid). This position will be
responsible for the attraction portion of the economic development portfolio, and the
cost associated has been included in the 2022 budget for the Planning and
Development Services Department.
2.8 When Report CAO-003-21 was prepared, it was the expectation of staff that the amount
paid to CBOT under the renewal contract could be reduced by offering nominal rent in
the Edna Thompson Building (Shaw House) once it was renovated. Unfortunately, due
to the renovation quotes received, that project is on hold and therefore there is no
opportunity at this time for CBOT to relocate to this building.
Governance
2.9 Through Resolution #GG-427-21 on June 21, 2021, Council directed staff to request
that the CBOT Board of Directors accept the two Regional Councillors onto their Board.
This was to be considered in the context of the contract renewal.
2.10 The request was made to CBOT regarding the possibility of adjusting their board
composition to allow for these potential seats to be added (either net new or designated
amongst their current complement of Directors). They provided Council a written
response which can be found in Attachment 3.
2.11 It is of course not unheard of in a municipal context to have an elected official on the
board of an entity that they provide funds to. In the case of the Visual Arts Centre,
Clarington's financial contribution accounts for a considerable portion of their budget
and there is one Councillor appointed to their board (1 of 10 available seats). In the
case of the Bowmanville Older Adults Association, no member of Council has a seat on
the board. Further, those organizations are not operating as a contractor. In terms of the
CBOT, they have long provided an ex-officio "liaison" seat to a municipal staff member,
which MDB has suggested they continue to do.
2.12 Based on the above factors, and with a contract period of only two years (versus the
usual five-year term), staff, in consultation with MDB Insight, have built the following
communication and reporting regime into the draft contract (section 5):
(a) The Municipality shall provide CBOT with a Municipal Advisor to their board, to
support the ongoing efforts of staff and the Board of Directors.
(b) The Executive Director of CBOT shall provide a quarterly update to Council
through the Planning and Development Committee.
Municipality of Clarington
Report CAO-012-21
Page 5
(c) The Executive Director of CBOT shall meet regularly (at a minimum, quarterly) with
the Director of Planning and Development, Director of Community Services and
municipal staff leads to provide an update with respect to the services set out in
this agreement. This will inform the quarterly update to Council through the
Planning and Development Committee.
(d) The Executive Director and President of CBOT shall meet independently with each
member of Council (biannually) to discuss issues and initiatives relevant to their
ward and the ongoing activities of CBOT including matters addressed in CBOT's
business plans.
2.13 As noted, CBOT would be responsible to report regularly to Council on BR+E efforts,
against the agreed upon business plan, as well as tracking against KPIs. This will be
done through a report to the Planning and Development Committee but also through
informal conversations with Councillors (biannually). To provide a more encompassing
overview of economic development in Clarington, each quarterly CBOT update to the
Planning and Development Committee will be accompanied by an update from
Municipal staff responsible for the Attraction and Tourism portfolios. Overall, this
mechanism of accountability will ensure that Council is aware of the pertinent economic
development indicators on a regular basis.
Other Implications
2.14 As outlined in Report CAO-003-21, the "Community Planning and Design" division will
be renamed to "Community Planning and Economic Development". The Manager of the
division will assume the additional title of Economic Development Officer. The
Coordinator will report through the Manager, as well as have oversight over the contract
and its deliverables.
2.15 It is anticipated that there may be some initial confusion to the public related to who is
responsible for which components of the economic development functions. Determining
how to best communicate the division will be flushed out through the remainder of the
strategic planning process. It is also expected that our Communications Division will
work with CBOT to provide direction and approval as it relates to BR+E work
(advertising, marketing, etc.), including guidelines around the use of the Municipal logo
and brand assets.
3. Concurrence
Not Applicable.
Municipality of Clarington
Report CAO-012-21
4. Conclusion
Page 6
4.1 As the business community emerges from what has been a considerably uncertain and
challenging time, it is vitally important that the appropriate local supports be in place to
help them not only on their path to recovery but support them as they grow in the future.
This adjustment of services would allow CBOT to hone their workplan to an area that
will be critical in the post -pandemic world.
Staff Contact: Carlos Salazar, Manager, Community Planning and Design, 905-632-3379 Ext.
2409 or csalazar(a)clarington.net; Justin MacLean, Advisor, Corporate Policy and Strategic
Initiatives, 905-623-3379 Ext. 2017 or net.
Attachments:
Attachment 1 — Draft Contract
Attachment 2 — Review of Service Delivery Models (MDB Insight)
Attachment 3 —Letter from CBOT Board of Directors (Request for Two Board Seats)
The following interested parties will be notified of Council's decision:
Clarington Board of Trade - Board of Directors
Attachment 1 to Report CAO-012-21
PURCHASE OF SERVICES AGREEMENT
This Agreement is made as of the 1 st day of January 2022
BETWEEN:
THE CORPORATION OF THE
MUNICIPALITY OF CLARINGTON
("Municipality")
-and-
CLARINGTON BOARD OF TRADE
("CBOT')
IN CONSIDERATION OF their respective covenants and agreements herein contained
and subject to the terms and conditions herein set out, the Municipality and CBOT
covenant and agree each with the other as follows:
1. Definitions. In this Agreement,
"Agreement" means this Purchase of Services Agreement;
"CBOT" means the Clarington Board of Trade;
"Fee" means the fee paid to CBOT under section 9;
"Municipality" means The Corporation of the Municipality of Clarington or the
geographic area of Clarington, as the context requires; and
"Term" means the term of this Agreement as set out in section 2.
2. Duration of Agreement. The term of this Agreement commences on January 1,
2022 and continues until December 31, 2023.
3. Termination of Agreement. The agreement between the Municipality and CBOT
dated January 1, 2017 expressed to be in force until December 31, 2021 is
terminated upon this Agreement coming into effect.
4. Services Being Purchased and Provided. The Municipality agrees to purchase
from CBOT and CBOT agrees to provide to the Municipality the following economic
development services:
(a) act on behalf of the Municipality in relation to the services provided by CBOT
under this Agreement, mainly the development and implementation of the
Business Retention and Expansion program;
Attachment 1 to Report CAO-012-21
(b) identify target and key employers, and priority economic sectors, to be
included in Business Retention and Expansion (BR+E) programming in
cooperation with the Municipality;
(c) assist local businesses with expansions and relocation within the
Municipality, and retaining their existing operations within the Municipality;
(d) establish monthly corporate calling targets on outreach/visits/engagement
activities;
(e) work with the Municipality to explore the possible deployment of a tracking
tool to act as a client relationship management instrument to capture critical
intelligence of the local economic base and relevant industry sectors;
(f) undertake regular consultation with the public and business community on
relevant economic development topics as requested by the Municipality as
part of the services outlined in this agreement;
(g) market and promote the
Municipality to
existing and potential
new local
ventures, taking into
consideration
the Municipality's
Economic
Development Strategy,
Municipal Council's Strategic Plan, Clarington's
Official Plan and the
Municipality's
communications and
branding
strategies;
(h) facilitate interaction between the local
business community
and the
municipality;
(i) collaborate with the Municipality on funding opportunities with the Federal
Government, the Provincial Government, and other sources for economic
development purposes;
Q) support the municipality in identifying, establishing and maintaining suitable
partnerships/relationships throughout the community and wherever
necessary to meet the economic development objectives of the Municipality;
(k) provide guidance and leadership in the development of the local workforce
based on input from the local business community;
(1) inform, where able, the offices of the Mayor and the Municipality's Chief
Administrative Officer/Director of Planning and Development in advance of
public announcements or events involving CBOT and/or economic
development matters;
(m) collaborate with the Municipality and other relevant organizations in the
implementation of the Municipality's Economic Development Strategy;
(n) support the growth of Clarington's entrepreneurial ecosystem and small
business economy through partnerships with like-minded agencies and
Attachment 1 to Report CAO-012-21
organizations including the Business Advisory Centre Durham and the
Spark Centre; and
(o) prepare and submit on or before April 1, 2022 and January 1 st of every year
thereafter, an annual business plan to the Municipality that reports on the
progress associated with the services described in this Agreement and the
workplan for the year.
5. Ongoing Liaison. To keep the Municipality informed on a timely basis of the
success of the CBOT in providing the services set out in this Agreement and to
maintain good working relationships, CBOT and the Municipality shall maintain
ongoing liaison as follows:
(a) The Municipality shall provide CBOT with a Municipal Advisor (staff) to their
board, to support the ongoing efforts of staff and the Board of Directors.
(b) The Executive Director of CBOT (or designate) shall provide a quarterly
update to Council through the Planning and Development Committee.
(c) The Executive Director of CBOT (or designate) shall meet regularly (at a
minimum, quarterly) with the Director of Planning and Development,
Director of Community Services and municipal staff leads to provide an
update with respect to the services set out in this agreement. This will inform
the quarterly update to Council through the Planning and Development
Committee.
(d) The Executive Director and President of CBOT shall meet independently
with each member of Council (biannually) to discuss issues and initiatives
relevant to their ward and the ongoing activities of CBOT including matters
addressed in CBOT's business plans.
6. Performance Measurement. CBOT and the Municipality shall work together to
develop a business plan for the length of the contract including key performance
indicators for the services described in section 4 following completion of the
Municipality's Economic Development Strategy in the first quarter of 2022.
7. Third Party Agreements. CBOT may enter into agreements with other parties
which are consistent with the business plan(s) outlined in this contract. The
Municipality may enter into agreements with other parties which are consistent with
the Municipality's objective of strengthening and expanding the local economy.
8. Relationship. Nothing contained in this Agreement shall constitute CBOT as the
agent, partner, employee, or joint venturer of the Municipality. CBOT shall not act
to,
(a) incur any expense, liability or obligation on behalf of or in the name of the
Municipality;
Attachment 1 to Report CAO-012-21
(b) enter into or engage in any negotiations on behalf of or in the name of the
Municipality concerning a proposed acquisition or disposition of land by the
Municipality; or
(c) make any representation, inducement or enter into or engage in any
negotiations on the basis that the Municipality would assist directly or
indirectly any manufacturing business or other industrial or commercial
enterprise through the granting of bonuses for that purpose by the
Municipality giving or lending any property of the municipality, including
money, guaranteeing borrowing, leasing or selling any property of the
municipality at below fair market value, or giving a total or partial exemption
from any levy, charge or fee contrary to section 106 of the Municipal Act,
2001.
(d) The Board acknowledges that the responsibility for economic development
services lies with Municipal Council.
9. Consideration. For the services provided under this Agreement, and once a
business plan has been approved to the satisfaction of the Director of Planning and
Development Services and provided CBOT is not in default, the Municipality shall
pay CBOT a flat fee of $325,000 for the first year of the Term and a flat fee of
$300,000 for second year of the Term. Each such payment shall be made as soon
as possible after the Municipality has approved its annual budget.
10. CBOT's Human Resources. CBOT shall be the direct employer of its own human
resources, with an organizational structure, staff complement, and salaries and
benefits determined by CBOT.
11. CBOT's Corporate Services. CBOT shall be responsible for its own corporate
services such as payroll and benefits administration, banking, accounting and
financial management, legal, purchasing, printing, computers and office
technology, human resource management, mail/courier, office space, furniture,
fixtures and supplies.
12. Indemnification by CBOT. CBOT shall indemnify and save harmless the
Municipality and its representatives from and against all claims, demands, losses,
costs, damages, actions, suits or other proceedings by whomsoever made,
sustained, brought or prosecuted, in any manner arising from any willful or
negligent act, or attributed to anything done or omitted to be done by CBOT, its
directors, officers, employees or agents arising from or pertaining to the receipt,
disposition or refunding of Fees, as the case may be.
13. Indemnification by Municipality. The Municipality shall indemnify and save
harmless CBOT, its directors, officers, employees and agents, and their respective
heirs, executors, administrators, successors and assigns from and against all
claims, demands, losses, costs, damages, actions, suits or other proceedings by
whomsoever made, sustained, brought or prosecuted in any manner arising from
any willful or negligent act, or attributable to anything done or omitted to be done
Attachment 1 to Report CAO-012-21
by the Municipality, its officers, employees or agents, arising from or pertaining to
the late payment or nonpayment of any installment of the Fee or other financial
obligation of the Municipality to CBOT except where such late payment or
nonpayment is permitted by this Agreement.
14. Provision of Information. Upon written request from the Municipality, CBOT shall
provide the Municipality, without expense to it, any information, as it pertains to
economic development activities, which is available to CBOT with respect to its
business plan and which it is able to provide without breaching any applicable law.
15. Events of Default. The following constitute events of default under this
Agreement:
(a) CBOT becomes bankrupt or insolvent, goes into receivership, or takes
the benefit of any statute from time to time being enforced relating to
bankrupt or insolvent debtors;
(b) An order is made or resolution passed for winding up or for the dissolution
of CBOT or it is dissolved;
(c) CBOT ceases actual bona fide operation for a period of thirty (30) days;
(d) CBOT has knowingly submitted false or misleading information to the
Municipality; or
(e) CBOT is in breach of the performance of, or compliance with, any term,
condition, or obligation on its part to be observed or performed under this
Agreement.
16. Remedies on Default. If an event of default specified in subclause 15 (a), (b),
(c) or (d) occurs or an event of default specified in subclause 15 (e) occurs and
is not remedied within thirty (30) business days after receipt by CBOT of notice
of default, or a plan satisfactory to the Municipality to remedy such an event of
default is not implementedwithin such period and fully and diligently carried out
thereafter, then the Municipality may, in addition to any other remedies
otherwise available, terminate this Agreement and any obligation by the
Municipality to pay the Fee including any unpaid installment outstanding prior
to the date of such termination.
17. Waiver of Breaches. In the event of a breach of any provision of this Agreement
by one party, no action or failure to act by the other party shall constitute a waiver
of any right or duty afforded by that party under this Agreement, nor shall any such
action or failure to act constitute an approval of or acquiescence in any such
breach, except as may be specifically agreed to in writing.
18. Further Documents. CBOT and the Municipality shall, from time to time,
execute and deliver all further documents and instruments and do all acts and
things as the other party may reasonably require to effectively carry out or better
Attachment 1 to Report CAO-012-21
evidence or perfect the full intent and meaning of this Agreement.
19. Notice. Where in this Agreement any notice, request, direction or other
communication is required to be given or made by either party, it shall be in writing
and is effective if delivered in person or by recognized courier addressedto the
other party for whom it is intended at the following addresses, and any notice shall
be deemed to have been given on the date of such delivery.
Any notices intended for the Municipality shall be delivered and addressed to:
Municipality of Clarington
40 Temperance Street
Bowmanville, ON L1 C 3A6
Attention: Municipal Clerk
Any notices intended for CBOT shall be delivered and addressed to:
Clarington Board of Trade
54 King Street East, Suite 102
Bowmanville, ON L1 C 1 N3
Attention: President
The address of either party may be changed by notice in the manner set out
above.
20. Assignment. Neither party shall assign all or any portion of its rights or obligations
under this Agreement to a third party without the other party's prior written consent.
21. Supplementary or Additional Agreements. If at any time during the continuance
of this Agreement, the parties shall deem it necessary or advisable to make any
alteration or addition to this Agreement, they may do so by means of a written
agreement between them which shall be supplemental or additional hereto and
form part hereof.
22. Severability of Provisions. If any of the provisions of this Agreement shall be
illegal or invalid, such illegality or invalidity shall not render the whole
Agreement illegal or invalid, but the Agreement shall be construed as if it did
not contain the illegal or invalid provision or provisions, and the rights and
obligations or the parties shall be construed and enforced accordingly.
Attachment 1 to Report CAO-012-21
IN WITNESS WHEREOF the Municipality and CBOT have signed this Agreement.
THE CORPORATION OF THE
MUNICIPALITY OF CLARINGTON
Per:
Adrian Foster, Mayor
Per:
June Gallagher, Municipal Clerk
CLARINGTON BOARD OF TRADE
Per:
Angelo Lyall, President
Per:
Sheila Hall, Executive Director
1w.
GOVVNE
BOARD l
fflN AC EMENT
MISSION
POLICIES
VALUES
1(:
ri
INSIGHT
Econom
Development
Strategy
Appendix 1
Review of
Service Delive
Models
Municipality of
larin t n
November 2021
ra
Contents
Economic Development Service Delivery Models................................................................... 1
InternalService Delivery....................................................................................................................
2
Organizational Structure and Governance.........................................................................................................2
Advantages/Disadvantages of Internal Service Delivery....................................................................................2
External Service Delivery...................................................................................................................
3
Organizational Structure and Governance.........................................................................................................4
Advantages of External Service Delivery............................................................................................................4
Five Case Studies of Economic Development Corporations.............................................................
6
Town of Ajax - Economic Development Office...................................................................................................8
City of Kingston — Economic Development Corporation....................................................................................9
City of London — Economic Development Corporation....................................................................................11
City of Peterborough — Peterborough & the Kawarthas Economic Development...........................................13
City of Vaughan — Economic and Cultural Development Department.............................................................16
Review of Service Delivery Models (MDB Insight).docx Page i
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Economic Development Service Delivery
Models'
A critical part of the service delivery review for the Municipality of Clarington and Clarington Board of
Trade (CBOT) is understanding internal and external economic development functions. The following
section breaks down each service delivery method, their advantages and disadvantages and impact on
economic development goals and objectives. This is followed by an initial high-level review of select
economic development corporations across Ontario. The analysis provides context for the
considerations that informed the Proposed Service Delivery Terms for Municipality of Clarington and
CBOT.
Overview
There are a variety of economic development structures in place across Canada and can be most easily
understood as falling within three specific models that operate internal or external to the municipality.
The municipal department or office model falls under internal service delivery and development
corporations, and private/independent development organizations fall under external service delivery.
Internal and external models exist to achieve the same general purpose, the provision of local economic
development services. While neither model is superior, the characteristics of an individual municipality
help guide it to the best model, given its circumstances.
Most internal and external organizations in Ontario cover a similar suite of economic development
services. However, internal economic development organizations in Ontario tend to also support
tourism, while more external corporations operate a small business center. Although there can be
substantial overlap in program areas, financials, and staffing resources between internal and external
organizations, a comparison between experience in partnerships, governance, decision -making, and
accountability indicates differences between the three models that fit under the two modes of service
delivery.
While, in theory, these three models and two modes of service delivery represent the typical structures
of economic development in practice in Canada, several nuanced and hybrid structures exist across the
country to meet the specific needs of a community or region. In some instances, municipalities contract
out the role of economic development to a qualified person or corporation via a formal tendering
process. This model, though rare, is used by municipalities that do not have the internal capacity to
develop and/or implement economic development activities themselves. If this model is used,
governance is ultimately the municipality's role and resembles any other contractual relationship
between a client and agent. Accountability of operations is the meeting of specified deliverables
according to the provisions of the contract
1 Informed by Blakely, Edward J., N. Green Leigh, Planning Local Economic Development: Theories and Practices,
Sage Publications (2009); and Parker, P., & Donaher, E. (n.d.). Comparing economic development corporation
and internal department models: Service delivery in Southern Ontario; and Thompson, S. (n.d.). Delivery models of
local economic development: An analysis of internal and external models in Ontario.
Review of Service Delivery Models (MDB Insight).docx Page 1
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Internal Service Delivery
Internal service delivery is characterized by the direct involvement of the municipality in the operations
of the economic development office.
Municipal Department or Office Model
The economic development office is housed within the formal municipality as either a standalone
division or contained within an overarching departmental structure (e.g. Planning, Development Services
etc.). In this model, economic development is funded through a line item or departmental budget,
subject and accountable to municipal council through the annual budget process and review through the
director or Chief Administrative Officer (CAO).
Organizational Structure and Governance
Depending on the size of the community, municipal statistics, historical context and other factors,
internal structures can take on different forms. In smaller or more rural communities, a single person
may manage the municipalities' economic development activities. There are also instances of less formal
delivery mechanisms such as the use of voluntary committees, the services of a planning department or
other related department and/or the use of a staff member with primary responsibilities other than
economic development.
In general, internal economic development departments report through a chain of command, often to
the CAO or City Manager, and formally governed by the elected council and mayor. In some cases, there
can be an economic development committee of council that meets with economic development
practitioners more frequently than full council meetings. Staff members are accountable to council for
the delivery of programming and services.
Advisory committees made up of private sector representatives with council liaison members also exist
in the governance of some municipal economic development departments. These committees do not
have any formal financial or decision -making responsibility. Still, they play an important role in policy
setting, advocacy, strategizing and providing connection to industry and advice on on -the -ground
experience.
Advantages/Disadvantages of Internal Service Delivery
Some of the more commonly recognized advantages of an internal municipal department or office
model include:
■ Full accountability of the economic development department or office through Council reporting,
public meetings, annual and ongoing reviews, and the annual budgeting process. In this instance,
the municipal department or office model could be argued to be the most democratic
■ Easier to tap into the network provided by well-connected councillors and the broader (regional or
county -wide) understanding of economic development offered by the councillors.
■ Streamline administration through integration with council meetings, thereby eliminating board
meetings and the associated administration
■ Incorporation of finances with city operations helps eliminate a separate set of audited books and
administration.
Review of Service Delivery Models (MDB Insight).docx Page 2
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■ Increases the potential for collaboration between different municipal department and economic
development staff. The department would also gain access to established municipal services,
including human resources, finance, geographic information systems,
Ex. Opportunity for greater involvement of communication and marketing coming out of the
municipality.
■ Economic development strategies can be more aligned with other municipal strategic plans
■ The potential for a sustainable wage, benefits and pensions offered by municipal jobs can help
attract highly -skilled economic development professionals
Some of the more commonly recognized disadvantages of an internal municipal department or office
model include:
■ Difficult to hire and leverage volunteerism, given it may cause problems with established employees
and unions
■ Potentially weaker connection to industry relative to models that follow external service delivery
■ Public economic development departments are often much more limited in the scope of what they
can undertake
■ Requirements for council approval for strategic partnerships or major investments can often slow
down economic development through the council approval process. In this instance, and especially
in highly competitive jurisdictions or industries, this longer lead time could be the difference,
particularly in investment attraction efforts.
External Service Delivery
External service delivery is characterized by members of the private and public sectors coming together
as directors of the board for a not -for -profit. A clear set of terms of reference defines roles and
responsibilities in the decision -making process related to economic development. Most of the funding
for external service delivery is generally from the municipality. Other funding can come from provincial
or federal grants and fundraising through sponsorships, gala dinners, etc.
There are four situations for which external service delivery may be considered appropriate:
The service area is multi -jurisdictional (becoming more prevalent as the emphasis for regional
cooperation and collaboration for economic development increases)
2. Scope of service delivery is intergovernmental
3. Flexibility in service delivery or organizational structure is required
4. Economic development functions benefit from arms' length delivery
In Ontario, most external service delivery is completed by a development corporation or
private/independent development organization
Development Corporation Model
The development corporation, also referred to as a municipal services corporation (MSC), is a "joint
power" institution involving varying degrees of government, business and community representation
and support within an incorporated body. Depending on the articles of incorporation, the economic
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development corporation is usually represented by the mayor and council to ensure that the
municipalities' interests are represented.
Private/Independent Development Organization Model
These organizations are sponsored by local/regional businesses and operate in economic development
with permission or endorsement of local government (for example, through chambers of commerce,
board of trade or other business associations). While some municipalities, particularly smaller
communities, use the private development association model, it is generally regarded as rare in Ontario.
Organizational Structure and Governance
A board of directors often governs external organizations. Although, the composition of the board may
differ depending on the community, members can include large or small business owners in various
sectors, industry association representatives, and education, labour and municipal partners. Typically,
staff members report to the corporation's board of directors through a general manager or CEO. The
board of directors sets policy, and staff members are employees of the corporation.
The number of staff in an external organization varies depending on the scope of services provided,
which could overlap with tourism and running a visitor information center. Contract and seasonal
employees can figure largely into some external organizations' overall staffing plan. An external
organization is not under the direct control of the municipal council but is one step removed from the
municipal administration.
Advantages of External Service Delivery
Some of the more commonly recognized advantages of the development corporation and
private/independent development organization models include:
■ Service delivery can be more closely aligned with business and industry interests
■ Provides an opportunity for business leaders to become fully engaged and accountable through
membership on the board or leading activities and initiatives
■ The board of directors allow for the presence of outside expertise (direct or with connections) and
representation from a number of groups with diverse interests
■ Stakeholders in connection to the board of directors are more likely to get involved and assist.
■ The separation from municipal operations would likely indicate that the staff are focused on
economic development activities and not balancing these priorities with other municipal priorities,
which can occur in smaller internal municipal economic development departments.
■ Hours of work can be adjusted to match those of the private sector to improve access to
information and resources
■ Speed and flexibility in the decision -making process
Can operate with minimal bureaucracy, be more aggressive and take risks when it comes to
business or marketing decisions.
■ Ability to apply for funding from sources that might not be available to a municipal department
Advantages specifically for the development corporation model include:
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■ Shared ownership with the private and/or not -for -profit sector
■ The ability to engage in borrowing against a revenue stream (i.e. lease of land)
■ The ability of the corporation to engage in contracts with the private sector for development
initiatives!
Advantages specifically for the private/independent development organization model include:
■ This model involves the most involvement from the private sector from a funding perspective
and could be the least costly for the municipal taxpayer as funding, could be privately
generated.
Some of the more commonly recognized disadvantages of the development corporation and
private/independent development organization models include:
lack of direct oversight by the council. This arms -length approach can sometimes be seen as
undemocratic or unaccountable
■ Many of the typical regulations and transparency measures or policies that apply at the
municipal level may not be in place for an external organization
■ Potential volatility of funding depending on its composition
z Municipal Planning and Financial Tools for Economic Development -
http://www.mah.gov.on.ca/AssetFactory.aspx?did=9175
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Five Case Studies of Economic Development Corporations'
The following case study review provides a brief description of economic development organizations in
five (5) communities across Ontario. The review aims to understand the role of the organization,
governance structure, areas of strategic focus and economic development programming and services.
The review also considers the budget requirements, sources of resources and report on financial
partnerships. Also included are brief overviews of roles in investment readiness.
The six comparable communities chosen for the review are:
■ Ajax
■ Kingston
■ London
■ Peterborough
■ Vaughan
The case study communities share similar characteristics in terms of population growth, urban
character, access to transportation infrastructure, current and targeted economic sectors, and the
presence of post secondary (either local or regional).
The following parameters were reviewed:
Role of Business Model
Programs and Services
Governance Structure
Performance Measurements
Budget/Resource Requirements
Source of Resources
Innovation Ecosystem
Presence of an MDC? (Y/N)
Role in Investment Readiness
The results of the high level review identified that the economic developments structures, both internal
and external, have well-defined mandates, governance structures and programs and services. At a high-
level, the five economic development structures overlap on seven economic development focus and
strategy areas. The key areas are:
Business Retention and Expansion — Similar to marketing, Business Retention and Expansion is a
core focus area irrespective of internal and external organizations. While some communities focus
on BR+E specifically for the target sectors, the mandate for others is overarching. London Economic
Development Corporation (LEDC) has dedicated business retention staff resources who provide
existing companies across industries with supply chain connections, assistance with exports and
market diversification, assistance in accessing funding programs and regulatory assistance.
Investment Attraction — External organizations engage in investment attraction as a core function
of their economic development functions. This includes maintaining an inventory of
Properties/Land, ensuring access to business parks and office/commercial spaces, providing site
selection service and assisting in permits and approvals process. Internal organizations are also
s Based on historical research conducted by MDB Insight with a high-level review of each community's economic
development website on October 2021. This review provides general examples of internal and external service
delivery and specific parameters may have changed.
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involved in investment attraction to varying degrees. For example, Ajax Economic Development's
investment attraction efforts are primarily as a facilitator rather than foreign direct investment
activities. Durham Region, through Invest Durham, engages in lead generation, international trade
missions and investment attraction efforts on behalf of the region and Ajax staff respond to site
selection inquiries, convert investment leads and guide potential businesses through municipal and
development processes.
Branding, Marketing & Promotion — Both internal and external economic development
corporations are invested in branding, marketing & promotion as part of their economic
development functions. This includes the marketing of economic and community development
opportunities and assets across the community to potential internal and external investors and
traditional business retention and expansion or business/entrepreneurial support services.
Support for Start-ups and Scale -up of Businesses — Almost all internal and external models
have recognized the importance of growing the entrepreneurial economy and creating an enabling
environment for start-ups and scale up of businesses. External and internal models have some form
of small business support or advisory services.
Workforce Development — Comparing external and internal models, workforce development
appears a core function of external corporations (Kingston and London) while it is a facilitation role
for internal models. Kingston's mandate includes developing workforce development portfolios to
attract and retain people. It also focuses on youth entrepreneurship programs.
City as a Land Developer — While all communities are involved in investment attraction to some
degree including site selection and attracting FDI, municipalities each take a slightly different
approach to land development. Ajax had historically developed business parks and are considering
options to re-enter the development space in strategic areas of their downtown. The City of
Vaughan has identified strategic lands for development in their hospital precinct and will be working
with partners to see the lands developed and the targeting of complementary firms.
The following matrix summarises Economic Development Focus and Strategy Areas of the five case
study communities.
Table 1: Matrix of Economic Development Focus and Strategy Areas
Kingston
London
Peterborough
Ajax
Vaughan
Investment Attraction
✓✓✓
✓✓✓
✓✓✓
✓✓
✓✓✓
Branding, Marketing &
Promotion
✓✓✓
✓✓✓
✓✓✓
✓✓✓
✓✓✓
Business Retention and
Expansion
✓✓✓
✓✓✓
✓✓✓
✓✓✓
✓✓✓
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Kingston London
Peterborough
Ajax
Vaughan
Support for Start-ups and scale
up of businesses
✓✓✓
✓
✓✓✓
✓✓
✓✓✓
Innovation Ecosystem
✓✓
✓
✓✓
✓✓✓
✓✓
Workforce Development
✓✓✓
✓✓✓
✓✓
✓✓
✓✓
City as a Land Developer
✓✓
✓✓
✓✓
✓✓
✓✓
✓✓✓= Core Function ✓✓=Facilitate ✓=Support
Town of Ajax - Economic Development Office
Role/Mandate Deliver economic development services on behalf of the Town. Work in
partnership with Durham Region on initiatives of regional significance.
Programs and Services Business Retention and Expansion (BRE) - Monitoring business trends and
activities outside of the Town that could have an implication on Ajax's business
community. The section is charged with the responsibility of connecting and
promoting business expansion within Town and facilitating efforts to retain
existing businesses.
■ Business Attraction - Business attraction is facilitated by Economic
Development. The team is responsible for monitoring leads generated
externally, and self -generating leads through target marketing of employment
areas and available properties.
■ Marketing & Outreach- Marketing, promotion and outreach to create
awareness of the Town's employment lands, business support services and
tourism opportunities. The outreach responsibilities include connection to all
levels of government, government associations and business support services
on behalf of local businesses.
• Corporate Real Estate Portfolio Management- Co-ordination and management
of the Town's real estate portfolio. This includes the facilitation of all land
transactions, including negotiations, and management of specific lease
agreements, licensing, easement, encroachment and other real property
matters
Governance Structure ■ Internal municipal department under Planning and Development Department
Performance ■ Non-residential permit value
Measurements/Objectives ■ # of investment inquiries
• # of jobs accommodated on employment lands
• # of pre -consultation meetings
• # of jobs created
• Investment value ($) through priority development program
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Parameters
Description
Budget/Resource
■ $528,100 (2020), 4 FTE
Requirements
Source of Resources
■ Tax supported operating budget
Presence of an MDC?
No
(Y/N)
Role in Investment
The Town's real estate portfolio is under the jurisdiction of the EDO. EDO
Readiness
manages acquisitions and disposals but due to limited resources, acquisitions
are primarily to accommodate public infrastructure works as opposed to land
development/redevelopment and sale. Ajax relies on Durham Region for
foreign direct investment lead generation and marketing but respond to site
selection inquiries. Ajax Economic Development delivers the Priority Path
program, an award winning initiative that provides expedited approvals to high
value investments.
City of Kingston — Economic Development Corporation
Parameters
Description
Role/Mandate
The Kingston Economic Development Corporation was established in 1998 as a
not for profit agency. The Corporation was formed for more sustainable long-
term economic growth. The goal of the corporations is:
■ Delivery of Business Support Services
■ Substantial and continuous investment in High Priority Growth Sectors that
align with provincial and National economic priorities
• Attraction of labour force meeting current and ongoing employment growth
need and support next generation of entrepreneur led private companies
Programs and Services
The Corporation is responsible for the attraction of new business, the growth and
retention of existing business and tourism opportunities. Programs funded by the
City of Kingston include:
■ Workforce Development Portfolios — Attracting and retaking people to live
work in Kingston
■ Attraction and Aftercare — maintain and strengthen existing and new
relationships to position Kingston as a destination for foreign investment
• Business and Growth & Retention — Support local business to become more
competitive, grow revenue and stay within the community
• Start-ups & Youth Entrepreneurship — Assisting with the development of
future business leaders by providing programs and services for next
generation
Governance Structure
The department is governed by a Board of Directors (14 members). The
department has representation from the Business community and Municipal
Council and senior staff.
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Performance I Investment attraction and investment aftercare
Measurements/Objectives Number of leads generated.
■ Number of leads resulting in new investment.
■ Number and value of new jobs created that can be attributed to direct EDO
assistance with attraction, recruitment and / or retention.
■ Amount of new investment in the community through new build, lease,
government grants; and
■ Total annual wages or salaries of new FTE jobs at client companies.
Business retention and expansion and work with local businesses
■ Number of visitations to local businesses.
■ Level of business satisfaction with services provided (via annual survey);
■ Number of jobs created or retained through service; and
■ Total annual wages or salaries of retained FTE jobs at client companies.
Support for small business and entrepreneurs
■ Number of inquiries received.
■ Number of consultations provided.
■ Number of new businesses started / registered, including youth
entrepreneurship programming.
■ Number of new jobs created that can be attributed to direct EDO assistance.
■ Average salary of jobs created.
■ Number of business planning programs and seminars conducted and number
of persons that attended; and
■ Funding opportunities leveraged.
Support for workforce development, jobs, and skills -building
■ Number of businesses engaged for workforce planning consultations.
• Workforce projections conducted and findings reported; and
■ Partnered events and activities.
Support for knowledge industries, young workers, technology transfer from
postsecondary institutions, and incubation/innovation enablement
■ Innovation ecosystem partnerships developed and maintained.
■ Youth entrepreneurship programming (e.g. Summer Company and Starter
Company); and
■ Partnered events and activities.
Budget/Resource The Kingston Economic Development Corporation received $1.46 million from the
Requirements municipality in the 2021 annual budget'
Source of Resources Three levels of government, the City of Kingston, provincial and federal
investment and private sector suDDort/revenues.
' Kingston 2021Operating and Capital Budgets -
https://www.cityofkingston.ca/docu ments/10180/38826078/Committee-of-the-Whole_Meeting-01-2021_Report-
21-049_2021-Operati ng-and-Capital-Budget. pdf/502964e0-b317-29d4-776a-1df6577c2238?t=1611847416693
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Parameters Description
Innovation Ecosystem KEDCO has partnered with the Ontario MEDEI/MRI to create the KEDCO
Small Business Development Centre (SBDC). The primary objective is to
facilitate economic growth through the development and expansion of
sustainable small businesses. Programs include Summer Company,
Futurpreneur Canada, starter company and pilot business program for age
29+. The Centre is currently housed in Queen's University Innovation Park.
■ Launch Lab is a Regional Innovation Centre and member of the Ontario
Network of Entrepreneurs, a provincially funded network of resources for
entrepreneurs. The head office is in Kingston at Innovation Park.
■ Kingston's innovation ecosystem includes a): Queens Innovation Centre;
partners include Innovation Kingston and Innovation Park (InnovationXL &
GrindSpaceXL) b): Innovate Kingston; partners include the City of Kingston,
Kingston Economic Development, Innovation Park at Queen's University and
Launch Lab and c): Southeastern Ontario Angel Network (SOAN)
Presence of an MDC? No
(Y/N)
Role in Investment Investment attraction and investment aftercare is one of the five focus areas of
Readiness the EDO's economic development activities. Initiatives include strong brand and
marketing program, up to date inventory and active promotion of available
employment lands, targets for attracting new business and investment, liaison
with Provincial and Federal government economic development agencies and
ministries and provide or contract support and expertise for the attraction of new
jobs and investment in high priority growth sectors.
City of London — Economic Development Corporation
Role/Mandate ■ Deliver economic development services on behalf of the City on a four-year
purchase of services agreement.
Programs and Services ■ Investment Attraction - Attracting new business and foreign direct investment
to London
■ Business Retention and Expansion - Retaining existing business and assisting
with local expansions
■ Advocacy - Advocating for improving the business environment in London
■ Workforce Development- Providing workforce development leadership to
connect businesses with education institutes and employment sector agencies
■ Marketing - Marketing and promoting London for business opportunities in
overseas markets
■ Economic Partnership - Establishing business support partnerships throughout
the community
■ Advisory - Assisting the City of London in development of strategic plans such
as industrial lands strategy and the Economic Road Map
■ The City of London also has a Small Business Centre which operates outside of
LEDC but is a partner on a variety of initiatives and events
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Governance Structure
Municipal Agency governed by a 15 member board of directors including Mayor,
City Manager, education and business leaders with LEDC President/CEO sitting as
an ex-officio member.
Performance
The City's purchase of services agreement provides performance metrics for each
Measurements/Objectives
service:
Investment Attraction
■ number of investment missions
■ number of regional investment promotion missions
■ number of attraction files
■ number of Foreign Direct Investment proposals
■ number of site selection tours
Business Retention and Expansion
■ number of retention files
■ number of active retention and expansion files
■ number of jobs retained
■ number of active expansion files
■ number of companies worked with
■ number of referrals made
■ number of supports provided for start-ups and scale -ups
■ number of activities to support entrepreneurship growth d.
Workforce Development
■ number of external job fairs
■ number of employer and job seeking consultations
■ number of workforce projects
■ number of seminars for SMEs
• number of activities to support employers
• number of employer meetings
■ number of agencies and institutions committed to developing a top quality
workforce
■ number of activities to support connections of students to business
■ number of activities to support connections of employers to employment and
other training agencies
■ number of activities to support connections of employers to newcomers
Budget/Resource
$2.3 million annually, 11 FTE
Requirements
Source of Resources
Purchase of Service Agreement with the City of London
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Description
City of Peterborough — Peterborough & the Kawarthas Economic Development
Parameters Description
Role/Mandate Peterborough & the Kawarthas Economic Development (PKED) is the lead
regional economic development agency for the City and County of Peterborough.
The core economic development activities are focused on four key categories,
namely, promote, start, grow and attract.
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Parameters
Description
Programs and Services
PIKED supports businesses through a variety of opportunities and challenges
including expansion, relocation, start-ups, funding applications, and succession
planning.
■ PIKED operates the Peterborough & the Kawarthas Business Advisory Centre,
supporting local entrepreneurs as they start, grow, and attain businesses.
■ PIKED also operates the Peterborough & the Kawarthas Tourism, offering
visitor services through the Visitor Centre and destination marketing services.
■ PIKED offers two entrepreneurship programs, namely, Starter Company Plus
and Summer Company
PIKED assists businesses with:
■ support in training and workforce development
■ identifying financing and funding opportunities
■ connecting to the local business support community and decision makers
■ navigating the planning process, zoning and regulatory environment
■ site selection and property identification
■ access to data and support in understanding local market research
■ advice on grant and application writing
Governance Structure
Governed by a Board of Directors made up of 12 key members of the region's
business community, including the Chief Administrative Officers for both the City
and County of Peterborough, as well as representatives from a variety of sectors
including education, healthcare, manufacturing, tourism, innovation and
agriculture.
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Parameters
Description
Performance
Promote
Measurements/Objectives
■ Media results and analytics
■ # Stories for both PIKED and Clients (Earned)
■ Social Media Analytics
■ Creation of Marketing Plans for each Target Sector
■ Website Analytics
Start
■ # Workshops Offered
■ # Attendees attending Workshops
■ # Hours consulting clients
■ # Businesses or Pre -businesses Assisted
■ # Businesses Started
■ #Jobs Created (Annually)
■ Business Survival Rate
■ Annual $ Value of funding obtained by entrepreneurs and start ups
Grow
■ # Business visits completed
■ # Continuous Improvement & continuous learning workshops
■ # Attendees attending Workshops and Summits
■ # Local Ec Dev Committee meetings attended
■ # Businesses assisted
■ # Barriers to growth identified
■ # Referrals to other Business support agencies
■ # Referrals from other business support agencies
■ #Jobs Created (Annually)
Attract
• # Leads per sector generated
■ # Prospects identified
■ # Missions (inbound and outbound)
■ # Businesses landed
■ # New jobs created (Annually)
• # Opportunities Lost
• # New conferences and tournaments recruited
• # Visitors Served (in person, mobile, on -line, live chat, phone)
Budget/Resource
2019 budget $2.25 million. (The 2022 draft budgets includes $1.15 million coming
Requirements
from the municipality) PIKED Leadership Team (5), PIKED Business Development
Team (5), Peterborough & the Kawarthas Tourism Team (3), Operations Team (2)
and Marketing & Communications Team (2).
Source of Resources
Core funding (82% of 2019 provided by City of Peterborough and County of
Peterborough). Other sources of funding include Federal, Provincial and Private
sector. Core funding was 2% higher than 2018 funding.
5 2022 Budget for the Peterborough and the Kawarthas Economic Development - https://pub-
peterborough.escribemeetings.com/filestream.ashx?Documentld=30199
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Parameters
Description
Innovation Ecosystem
PKED operates Peterborough & the Kawarthas Business Advisory Centre,
Peterborough & the Kawarthas Tourism and entrepreneurship programs, namely,
Starter Company Plus and Summer Company.
The innovation ecosystem also includes Innovation Cluster. Peterborough & the
Kawarthas Economic Development is a community partner. The Innovation
Cluster supports entrepreneurs in the formation and growth of their technology -
driven companies. Key sectors are cleantech, Ag-tech, healthcare and digital. The
Innovation Cluster operates The Cube, Peterborough's two full service business
incubators located at Trent University and in downtown Peterborough. It also
works with Fleming College's Centre for Advancement of Water and Wastewater
Technologies (CAWT), and recently launched the Trent Makerspace located at
Trent University, a world -class lab facility for clean -tech companies to produce,
test and commercialize IP based biotechnology products. Services for
entrepreneurs include:
■ Business Idea Validation
■ Intellectual Property Protection
■ Access to Funding
■ Business Planning
■ Marketing & Sales Strategies
■ Financial Management
Cleantech Commons, a university -linked Research and Technology Park
generates, attracts and retains science -based technology companies and talent
that is aligned with our associated research institutions, including universities and
public, private and federal research facilities. It enables the flow of ideas between
innovation generators —such as universities, colleges, federal labs, and non-profit
R&D institutions.
Presence of an MDC?
No
(Y/N)
Role in Investment
PKED assists businesses in site selection service, property identification and
Readiness
navigating the planning process, zoning and regulatory environment. PKED works
with partners including municipal governments, planners and real estate
developers to assist businesses in site selection. In addition, PKED works with
industry partners to help existing businesses access new markets by providing
market insights and small business assistance including small business services,
training and access to funding.
City of Vaughan — Economic and Cultural Development Department
Role/Mandate The department of Economic and Cultural Development strives to make Vaughan
an inspired community through entrepreneurship, business and cultural
development and strategic partnerships. The mandate is to:
■ facilitate entrepreneurship, employment and investment opportunities.
■ develop and promote creative art and cultural experiences that convey
Vaughan's identity and economic vitality.
• engage thought -leaders to generate insightful ideas, strategies and actions
that drive economic, cultural and partnership investments.
• deliver a valuable and relevant customer experience.
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Parameters
Description
Programs and Services
Business development: Assist businesses that are looking to achieve their growth
and expansion goals. This area focuses on employment and investment outcomes
to help businesses be a part of Vaughan and York Region's economies.
• Small business and entrepreneurship guidance: Help budding entrepreneurs,
small- and medium-sized enterprises and inventors grow and thrive in a global
marketplace.
• Creative and cultural development: Foster art and cultural experiences that are
fun, memorable and enriching while helping to grow the creative economy, the
community and the cultural spaces in Vaughan. Creative and cultural
development aims to further promote Vaughan's identity as a City of Choice.
• Partnerships and sponsorship: Enhance City programs, services and
infrastructure by generating strategic non -tax revenue. This is achieved by
leveraging City assets for sponsorship, advertising opportunities and grant
funding.
Governance Structure
Under the leadership of Interim City Manager (previous Chief Corporate Initiatives
and Intergovernmental Relations), in May 2018, a refreshed Economic and
Cultural Development organizational structure, mission and mandate was
approved. Over the past year, staff of the Economic and Cultural Development
department have been building a future -ready foundation focused on talent
(people), strategy, process and collaborative communication approaches and
tools.
Performance
Enhancing the Entrepreneurial and Innovation Ecosystem
Measurements/Objectives
■ Annual attendance at entrepreneurial related events and programs
■ The number of new start-up companies per capita
■ Annual number and dollar value of venture capital and angel investment
deals
Growing the Tourism and Creative Economy in Vaughan
• Number and value of new placemaking and place branding projects over five
years
■ Annual percentage growth of the population aged 25-34
■ Tourism and creative industries' growth over five years
Focusing International Business Development
■ The number of foreign -based business openings by industry sector,
investment value
• The number of inbound and outbound trade and investment missions and
the number of Vaughan businesses participating in those missions
• Number of employees of foreign- headquartered firms
Supporting Commercial and Experiential Development in the Vaughan
Metropolitan Centre
■ Annual growth of private capital investment in the VMC
• The annual number of events taking place in the VMC
• Number of new placemaking projects in the VMC over five years
Budget/Resource
Net Operating Budget $2 million in 2020. 14.7 FTE's in 2010. Increase from 12.7
Requirements
FTE's in 2018. These roles are required to lead the completion and
implementation of the Performing and Cultural Art Centre Feasibility Study, as
well as address the growing demand for additional arts and cultural support and
programming, including community -based heritage cultural events.
Source of Resources
Tax -Supported Operating Budget
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Parameters
Description
Innovation Ecosystem
The City of Vaughan's Economic and Cultural Development offers support for local
businesses and entrepreneurs at all stages. Within the department, the Vaughan
Business Enterprise Centre (VBEC) provides one -stop services for Vaughan's
aspiring entrepreneurs and existing business owners. Programs offered by the
Centre include Activate! Vaughan pitch competition, focused on solutions which
advance a technology -enabled healthcare system, Vaughan Starter Company Plus
program and Summer Company. Vaughan's innovation ecosystem includes:
■ Civic Centre Resource Library
■ HELIX program - Seneca College
■ Launch YU
■ NewMakeit
■ UBI Global
■ ventureLAB
Presence of an MDC?
No
(Y/N)
Role in Investment
Vaughan has one of the largest supplies of greenfield employment lands in the
Readiness
GTA. The Vaughan Enterprise Zone (VEZ) is located in the western quadrant of the
city encompasses an area of more than 1,120 hectares (2,767 acres). In addition,
the City has acquired land located in the northwest quadrant of Major Mackenzie
Drive and Jane Street to create an urban healthcare Precinct which will be
overseen by the Economic and Cultural Development Department. Other
investment readiness initiatives include on -site business visitation program,
business expansion and location assistance, access to in -market research and
intelligence and export development support.
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Attachment 3 to Report CAO-012-21
Clarington
Board of Trade and
Office of Economic Development
November 30, 2021
Angelo Lyall
President
Mayor Foster and Members of Council
40 Temperance St,
Kirk Kemp
Bowmanville, ON
Vice -President
Gord Wallace
Re: In response to the request from Clarington Council to obtain two board seats on the
Treasurer
Clarington Board of Trade (CBOT), please consider the following our response:
Kirsten Hutka
Secretary
Mayor Foster
Ben Earle
Thank you for communicating your desire to improve communication and governance of
Director at Large
Clarington's economic development contract and initiatives. The Clarington Board of Trade
Brad Phillips
shares your interest in pursuing efficient and impactful collaboration between our
Director at Large
organizations and we recognize the Municipality's position of accountability for economic
development to your stakeholders, many of which we share.
John Fledderus
Director at Large
CBOT has worked with Clarington Council since the inception of our organization over 20-
years ago and have provided the municipality a variety of economic development services
Lindsay Coolidge
through a series of multi -year contracts.
Director at Large
Michael Chester
We would like to clarify that much of the CBOT Board of Directors' work is focused on the
Director at Large
operations and organizational governance of the corporation. An additional advantage of
industry insight to programming for both an Economic Development Attraction and
Paul Halliday
Business Retention lens is realized with a broad range of skills and business experience. The
Director of Large
duties of our directors must be carried out without conflict of interest so that we can
maintain integrity and independence in our actions on behalf of Clarington's business
community and our other stakeholder groups.
Any change to add directors to our Board would require an adjustment to our By -Laws. This
would need to be presented to, and ratified by our membership, at an all members meeting
following due process for review and notice to the membership.
We do share your goal of bringing the organizations together to achieve the best possible
outcomes from our economic development initiatives. We want to be abundantly clear; we
believe in capturing the input and voice of members of Council. We also know that a closer
relationship can help to prevent duplication and other inefficiencies in the execution of
work. Importantly, we absolutely do recognize and respect that the economic development
contract is an agreement to perform important work as defined by the values and needs
outlined by the Municipality. The Municipality is our collaborative partner and our
customer, and we take that seriously. We believe in being accountable to the Municipality,
and delivering the value as outlined in the economic development contract. It remains our
goal to meet or exceed expectations and we are extremely well -positioned to do so.
54 King St. East, Unit 102, Bowmanville, ON L1C 1N3 • (905) 623-3106 • info@cbot.ca • www.cbot.ca
JAClarington
Board of Trade and
Ji Office of Economic Development
We believe that the outcomes that lay at the root of the request for board representation
can be achieved by implementing a joint Economic Development committee. This
committee would be combined with those executing economic development within both
organizations with each taking the lead on their respective hemispheres of work and
supporting one another to ensure that businesses in Clarington get the most value. This will
include a collaboratively developed annual BR+E business plan to be presented to Council
for input and approval. There is also an increased cadence of reporting to council and KPIs
that will be agreed to once the economic development strategy is finalized.
The architecture of this committee and its membership would include invitation to Council
in a way that is fair and confers no advantages or perceived advantages to one over the
other. We recognize the importance of this factor for you and are happy to discuss ways to
ensure it is adequately considered.
The Clarington Board of Trade shares your urgency for improvement, accountability, and
positive economic development outcomes. We know that with a joint economic
development committee focused clarity of roles, efficiency in execution and strong
communication, we can achieve the outcome you are looking for in your initial request for
board seats.
Again, we absolutely share your goal of delivering the most value under the Economic
Development contract. Please accept this letter as our offer to grow closer and strengthen
our efforts to work together through the use of a joint committee dedicated to economic
development. This path forward would help ensure the voice of Council is heard and that
both organizations maintain their independence to govern without violating any policies or
bylaws.
Thank you for expressing interest in collaborating more closely and striving for the best
possible outcomes for the community. We look forward to continuing our longstanding and
successful relationship.
Please feel welcome to reach out with any questions and to begin taking steps to
implementing a committee as described above.
54 King St. East, Unit 102, Bowmanville, ON L1C 1N3 • (905) 623-3106 • info@cbot.ca • www.cbot.ca