HomeMy WebLinkAboutPD-267-89TOWN OF NEWCASTLE
REPORT File #I- o�/,Z,
Res. #
By -Law #
MEETING: General Purpose and Administration Committee
DATE: October 23, 1989
REPORT #: PD- 267 -89 FILE #:
SLJ$,JECT: ECONOMIC DEVELOPMENT ACTIVITY
STATUS REPORT
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report PD- 267 -89 be received for information.
1. INTRODUCTION
1.1 In previous years, the Town of Newcastle has not participated
extensively in the marketing of the municipality to promote
and enhance the economic well -being of the Town. It was
becoming obvious that other municipalities in the Greater
Toronto Area were actively seeking investors and achieving
growth not only as a result of their locational
characteristics but due, in part, to the business marketing
practices of the municipality.
Early in 1989, the Mayor and Council expressed the importance
of economic and tourism development for the purposes of the
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creation of employment opportunities in the municipality and
improving the Town's industrial /commercial assessment base.
It has been a goal of the Town's Official Plan to provide a
balanced community rather than to become a dormitory suburb
for the metropolitan areas to the west.
1.2 This year the Town has commenced a pro- active approach to
economic development initiatives, placing increasing emphasis
on the attraction of new industrial and business enterprises.
It is intended that this be the first of a series of periodic
reports submitted to the General Purpose and Administration
Committee for information purposes. The report that follows
is included to provide Council and members of the public with
an overview of the activities undertaken by the Town and to
indicate the extent of economic development acitivity that has
been realized by the Town in 1989 to date.
1.3 The economic development program for the Town is co- ordinated
through the office of the Mayor, the Chief Administrative
Officer and the Director of Planning and Development. The
Strategic Planning Branch is assigned the day -to -day duties
for industrial marketing activities and co- ordination with
the planning process. Recently, Ms. Cynthia VanDinten, a
Planner in the Development Review Branch, has been assigned
to the Strategic Planning Branch as the contact and liaison
person for economic development activities.
1.4 A Working Group consisting of the Chief Administrative
Officer, the Director of Planning and Development, the Manager
of the Strategic Planning Branch and the planner responsible
have met regularly to review economic development and
marketing activities. It is the goal of this working group
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to formulate a comprehensive economic development and
industrial marketing strategy for the Town as well as to deal
with individual economic development prospects. At this time,
Staff is operating under a basic three point strategy:
(i) encourage and support existing businesses in the Town
(ii) attract smaller industrial prospects from Toronto looking
to relocate in the Greater Toronto Area; and
(iii) attract Pacific Rim and other investors looking to move
their business operation to the Greater Toronto Area.
2. ECONOMIC DEVELOPMENT PROGRAM FOR 1989
The basic elements of the Economic Development Program for
1989 have been reviewed by Council in several forums: staff's
presentation to Council in November 1988, the Budget
discussions, and the Planning Work Program presented in Report
PD- 100 -89.
2.1 INFORMATION BASE:
The Planning Work Program identified a number of actions to
increase the amount and quality of basic information on the
Town of Newcastle and to improve the quality of its
presentation.
i) Basic Information and Statistics
A comprehensive package known as the "Community Profile"
has been prepared containing statistics on demographics,
population forecasts, labour force, industrial land and
land values, transportation and community facilities.
This is deemed important since the first step for any
serious investor is to investigate the business and
community environment of the municipality under
consideration for a new plant. This information will be
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updated and improved on an ongoing basis. A copy of the
current information package will be distributed to
members of Council under separate cover when it has been
updated.
ii) Industrial Profile Survey
During the summer period, a survey of existing industries
was undertaken to help the Town gain a better
understanding of the industries currently located in
Newcastle and to establish better communication with
those existing industries. The survey gathered
information on company organization, products
manufactured or serviced, import or export requirements,
employment and building specifications. The latter is
important should the building be leased. The Town may
be in a position to refer future prospects seeking rental
premises to the Owners of them. A report on the results
of the survey is being finalized and will be presented
to Council at a later date.
Industrial Land Inventory
The Town's Industrial Land Inventory has been reviewed
and updated. It has been placed on a computerized data
base to facilitate future updates. This inventory
contains information pertaining to available industrial
lands, their location and site information, as well as
the availability of vacant industrial buildings.
2.2 PROMOTIONAL ACTIVITIES:
There have been a variety of efforts undertaken by the Town
to promote the Town of Newcastle as a place for business
opportunities. These efforts are summarized below:
i) Community Exposure
This year the Town has had widespread exposure in several
publications. For example the Toronto Star recently
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printed a profile on the Town of Newcastle in the Homes
Section indicating that the Town is planning for growth
and specifically focussed on the Town's economic
development. The Town was also featured in Mandarin
Homes, a Chinese magazine promoting homes and living in
suburbs. In addition, the Town has been featured in the
Financial Times Directory of Industrial Locations. The
Town will be recognized in the Readers Digest Tourist
Guide for 1990.
In addition to the above, the Town has purchased some
advertising space where considered appropriate, including
the ALCOMA Business Directory for Durham Region and the
1989 Tourist Guide for Durham Region.
Promotional Literature
The Town's brochure entitled "Newcastle: Your
Target for Investment" was received earlier this year and
has been widely distributed in the Greater Toronto Area,
Far East, Europe, and at several Trade Shows. In
addition, several smaller one -page handouts have been
prepared including the "Look Who's Moving to Newcastle"
sheets, identifying new industries.
iii) Promotional Video
The Town's promotional video is currently being updated
for use at trade shows, staff presentations to investor
groups, possible mail -out to potential investors, and to
Provincial and Federal offices located overseas.
iv) Characterization Map
Canadian Advertising Consultants has been retained to
prepare a characterization map of the Town. This project
is designed to convey a visual impression of the Town
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showing areas of interest in the community such as
libraries, recreation centres, and businesses. It serves
to relate existing business areas to major community
features and is therefore a viable promotional vehicle
for area businesses. The cost of the map's publication
are largely paid for by advertising and the Town will be
responsible to distribute 10,000 copies. The artwork is
nearing completion and it is anticipated that the map
will be printed for distribution sometime in November.
V) Memberships:
The Town is a member of the Economic Development Liaison
Committee established by Durham Region which meets bi-
monthly to co- ordinate the economic development
activities in the Region. In addition, the Town is a
member of a number of associations which enables staff
to "keep in touch" with current developments across
Ontario and in Durham Region. These include the Ontario
Industrial Development Council (OIDC), The Tourist
Association of Durham Region (TADR) and the Durham Region
Manufacturer's Association (DRMA). Staff have been
present at a number of meetings and the Mayor was a head
table guest at the annual meeting of the DRMA.
vi) Trade Shows:
The Town of Newcastle has been represented at one trade
show this year, although other opportunities and requests
have been turned down due to limited staff resources.
The Town was represented at the "Industrial Commercial
& Investment Real Estate Show" presented by the Toronto
Real Estate Board at the Development Institute Conference
in May. There was widespread interest in the Town at the
show.
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REPORT NO.: PD- 267 -89 PAGE 7
2.3 PLANT SITE LOCATION INQUIRIES
2.3.1 Staff and the Mayor's office regularly receive inquiries
from businesses planning to relocate or expand. Many of
these view the Town of Newcastle as a desireable location
with many advantages. The most common questions relate
to the number and training of the available labour force
in the area and the availability of serviced industrial
land for sale.
2.3.2 General inquiries are dealt with by Staff and /or the
Mayor who provide the standard promotional material and
may research some areas of interest to potential
investors. Follow -up letters and phone calls are made
where there is a serious interest in the Town. Staff
will regularly take the more serious investors to tour
possible sites in the Town.
2.3.3 Firms which indicate a serious interest in locating in
the Town are invited to meet with senior staff and the
Mayor for a presentation and tour of the Town.
Approximately a dozen such tours have been arranged to
date. Several very large firms have expressed interest
in the Town and Staff are actively following up these
leads.
2.3.4 Numerous inquiries have been received in 1989. Because
of the tremendous interest developing about the Town, a
more formal record keeping and follow -up system is being
devised and will be implemented in the coming year.
2.4 PACIFIC RIM INITIATIVE
2.4.1 On June 1, 1989, a five (5) member delegation from the
Town embarked on a twelve day economic promotion mission
to the Far East including Taiwan and Hong Kong.
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Some highlights of the activities include prime -time
television and radio interview with the Mayor, meetings
with local Canadian, Federal and Provincial trade
officials, participation in a three day trade show in
conjunction with the North American Real Estate
Exposition, and hosting an exclusive seminar and
information session at the new Hong Kong Convention
Centre attended by approximately 175 people. Part of the
delegation went to Taiwan to meet with local business
industrialists.
The seminar, advertisements, and considerable local media
coverage in Hong Kong had created tremendous interest in
the Town. The delegation was caught in a somewhat
overwhelming but pleasant situation in that there was
insufficient manpower to meet with all the business
people who had expressed interest in the Town. Out of
the numerous inquiries and meetings, twenty -three (23)
serious prospects arranged follow -up meetings with the
delegation that lasted well into the evening.
2.4.2 The summary of the costs to the Town for the Economic
Development mission to Hong Kong and Taipei are as
follows:
Delegation Costs $27,700
Consulting Services $ 6,200
Advertising $10,000
Office, Transportation,
Administrative, Etc. $ 6,600
Trade Show & Exhibition 4,200
TOTAL $54,700
2.4.3 The follow -up contacts and meetings which have
materialized since the actual mission to the Far East
include the following:
inquiries are being received by mail and followed
up by Staff. It is anticipated that some of these
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REPORT NO.: PD- 267 -89 PAGE 9
will materialize into actual visits to the Town from
interested investors.
several delegations by businessmen and their agents
have visited the Town for discussions with officials
between July and September. The exact nature of the
visits has varied from informal discussions through
the Mayor's office or major presentations and tours
conducted by Town Staff. These would appear to be
serious inquiries from investors investigating
relocation possibilities in the Vancouver, Montreal
and Toronto Market Areas.
from the Town's contacts with Federal and Provincial
trade officials overseas, there have been a number
of referrals to the Town of prospective investors
in Hong Kong and Taipei. It is expected that
several of these will result in follow -up visits to
the Town of Newcastle.
a further six delegations as a result of contacts
made during the Hong Kong mission are expected to
arrive in the last quarter of 1989 through
arrangements made with the Mayor's office.
2.4.4 The Town's initiative into the Pacific Rim has led to
many inquiries and resulted in some very serious
prospects who are preparing to establish new facilities
in the Town of Newcastle. It is expected that the high
public exposure of the Town in Hong Kong at an opportune
time will continue to yield dividends with the
appropriate follow -up actions. The Town has received
inquiries from other municipalities who wish to follow
the Town's example in their economic development
missions.
2.4.5 To date a number of serious projects have been discussed.
At the request of the investors, these projects must
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REPORT NO.: PD-267-89 PAGE 1W
remain confidential until they have materialized to the
point where the parties wish to disclose their exact
nature. In general terms, the following types of
industries are considering or have made relocation plans
in the Town of Newcastle:
(i) import- export trade business
(ii) textile and garment manufacturers
(iii) tourist facilities
(iv) automotive parts and supplies manufacturer
(v) office and industrial buildings to provide
space for small and medium site business.
3. INDUSTRIAL & COMMERCIAL ACTIVITY - JANUARY TO SEPTEMBER 1989
3.1 New Industries
Since January 1989, a number of new industries have located
in the Town of Newcastle creating a total of 75 new jobs.
These are summarized below:
Crothers Limited A 25,000 sq.ft. facility in the Courtice
Industrial Park to sell and service
Caterpillar heavy equipment.
Brandon Kitchens A 27,000 sq.ft. showroom and distribution
centre for kitchen and bathroom cabinetry
in the Courtice Industrial Park. Brandon
Kitchens is part of the Halminen Group of
Companies.
Railside Steel A 11,300 sq.ft. manufacturing plant for
Fabricating mining, pollution control and sewage
treatment equipment in the Courtice
Industrial Park. The plant has commenced
operation and will have an official
opening in November.
Custom Trailer Custom Trailer began full production in
Manufacturing May of this year at their 28,700 sq.ft.
facility on Port Darlington Road in
Bowmanville. The new plant will allow the
company to expand into new product lines,
such as waste disposal bins, in addition
to the large semi dump trailers for gravel
and other bulk materials.
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3.2 BUILDING PERMITS:
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New construction in 1989 has been led by the major expansion
to the St. Mary's Cement Plant. In 1989, the total value of
permits applied for as of the end of September, 1989 was for
$38.8 million of industrial construction and $2.3 million of
commercial construction. This is exclusive of any
construction by Ontario Hydro.
The following lists major construction activities completed
or underway as of September 30, 1989. Minor alterations under
$25,000 or 1000 square feet in size, are not included in the
projects listed below:
Industrial
St. Marys Cement New Office Bldg.(23,300 sq.ft.)
St. Marys Cement New Manufacturing Facility
Delta Faucet
Plant alterations
Halloway Holdings
Industrial Bldg. (7500 sq.ft.)
Schleiss & Holland
Industrial Bldg. (14,400 sq.ft.)
Handi Storage
Storage Units (8,200 sq.ft.)
Rossert /Taunus
Industrial Condominium (13,000 sq.ft.)
Rossert /Taunus
Industrial Condominium (9,700 sq.ft.)
AVP Extrusions
Addition to Factory (6,800 sq.ft.)
Motor City Crane
Industrial Building (12,800 sq.ft.)
Commercial
Flying Dutchman
Renovation
VanHaverbeke
Store addition (7,700 sq.ft.)
T. Price
Fruit Stand (1,500 sq.ft.)
Prestonvale Centre
Convenience Plaza (9040 sq.ft.)
Mosport Park
New Facilities
Cody's Restaurant
Interior alterations
722918 Ont. Ltd.
Renovate Gas Bar and New Car Wash
E.J. Stutt
Commercial Bldg. (3,000 sq.ft.)
Klawitter /Hynes
Store Addition (7,000 sq.ft.)
Reid
Restaurant Addition (1200 sq.ft.)
4. CONCLUSION
4.1 In the last quarter of 1989, the following activities are
planned:
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Follow -up of leads from the Pacific Rim initiative and
other substantive inquiries received to date
Update and revision of the information and statistical
package
Mail out campaign to targeted industries in Toronto
Circulation of joint venture opportunities in Newcastle
to various Federal and Provincial trade offices abroad
and across Canada
Publication of business directory for the Town of
Newcastle
Publication of Characterization Map of the Town of
Newcastle
4.2 Longer term initiatives which are under consideration include
the following:
a more pro- active involvement in tourism (e.g.
investigation of a possible tourist information centre);
establishing a more beneficial forum to involve existing
industries in economic development efforts (e.g.
breakfast meetings for local industrialists)
completion of a comprehensive economic development
strategy
further economic development missions abroad.
4.3 For the first time, Newcastle has been placed "on the map"
both in the Greater Toronto Area and internationally. These
efforts need to be ongoing and maintained in the longer term
to reap the full benefits from the Town's initiatives to date.
Other municipalities in the Greater Toronto Area and in
Southern Ontario have well- established, organized business
marketing programs and staff resources to attract investors
to their community.
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We believe that it is in the Town's interest to continue
serious efforts to attract employment opportunities to the
Town which have begun in 1989. In the longer term this should
contribute to the development of a more balanced assessment
base, which is necessary for the economic health of the Town.
We believe that the objectives of strong economic development
and the creation of a healthy economic and financial base for
the Town is worthy of support by all Departments and members
of Council.
Respectfully submitted,
n
Franklin Wu, M.C.I.P.
Director of Planning
and Development
CRV *DC *FW *jip
October 12, 1989
Recommended for presentation
to the Committee
Lawrence 9 Kotseff
Chief Admi istrative
Officer
Information Package under separate cover.
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