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HomeMy WebLinkAboutADMIN-21-87 TOWN OF NEWCASTLE REPORT File # -.2 )f Res. # By-Law # MEETING: General Purpose and Administration Committee DATE: October 5 1987 REPORT #: ADMIN.21-87 FILE #: WB,ECT: FORMULATION OF A LIAISON COMMITTEE REGARDING ECONOMIC DEVELOPMENT RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That a Liaison Committee be established as outlined in the Federation of Canadian Municipalities Series 1 "How to Organize for Economic Development" provided as Attachment #1 and that the primary mandate of the Committee be to provide input in the development of an economic development strategy for the Town; and 2. That the Mayor and Chief Administrative Officer report to Committee from time to time regarding the efforts of the Liaison Committee. REPORT: With the growing competition for industry and employment opportunities in the Region, Council has been increasingly made aware of the importance of economic development. To this end staff has had discussions with various parties and reviewed several publications related to economic development. It would appear that before any significant steps are taken in the area of economic development a more organized approach should be developed. The Federation of Canadian Municipalities, in conjunction with briefing sessions held with local communities, Provincial and Regional Municipal Associations and economic development professionals, has prepared a series of "How To" manuals related to Municipal Economic Development. The first series is entitled "How to Organize for Economic Development". Having reviewed this document, staff feel that it may serve as a useful mechanism for the development of a comprehensive economic development strategy. The very important step recommended is to establish a working group comprised of, for example, individuals from the business community. This group will serve as a liaison group and could provide assistance in such areas as the following: a) Preparation of the terms of reference of a strategy; b) Assist in the development of marketing strategies that would be beneficial to the Town; c) Provide input in the preparation of any promotional literature and materials; d) Assist in the identification of more specific target areas that the municipality should focus on in an effort to attract. A copy of the publication entitled "How to Organize for Economic Development" is attached for information purposes. Other related publications provided by the Federation of Canadian Municipalities are available in the Chief Administrator's Office for review purposes. Respectfully submitted, rwrenc/e .' otseff Chief Atrative Officer I i How to son Organize for Econoimc now Development FCM Municipal Economic Development Program �� r A Message from Alderman Ron Cromwell, President, Federation of Canadian Municipalities unicipalities are increasingly strategies and to elected officials who aware of the importance of approve economic development programs. economic development. To "How to Organize for Economic Develop- serve the interests of its members, the ment" concentrates on the practical aspects Federation of Canadian Municipalities of organizing for economic evcveelopmentt in (FCM) established the Municipal Economic the community. It stresses the need for a Development Program in 1985. The program is funded jointly by FCM and plan which is flexible and adaptable to the the Department of Regional Industrial and community's unity's own economic environment ces. Expansion and is directed by John Hastings. This manual is the first in a series of manuals. Others in the series will include: Under the program several projects are ■ How to Prepare an Economic Develop- underway: ment Strategy ■ establishment of a resource centre for ■ How to Collect Data for Economic economic development to assemble and Development distribute information on local economies and to undertake research; ■ How to Build on Existing industry in the � ■ establishment of a jointly-funded program Municipality to help municipalities improve their ■ How to Design Effective Promotional infrastructure; Literature ■ development of a strategy for municipali- While this and subsequent manuals ties to substitute Canadian goods for focus on individual municipalities, they are imported purchases; equally applicable to regional municipal ■ assistance in identifying aid and trade associations. It may be necessary for small municipalities to create a regional economic opportunities for Canadian municipalities development organization in order to have in developing and developed countries; and sufficient resources to mount an effective program. ■ development of municipal information The Federation of Canadian Municipalities networks. (FCM) trusts that these publications will Meetings and briefing sessions have been assist your community in its economic held with local communities, provincial and development efforts. If you have any ques- regional municipal associations, and eco- tions about this manual or the FCM's eco- nomic development professionals across the nomic development program please contact country. The economic development John Hastings at the address below. experiences shared during these meetings have greatly assisted the FCM in preparing a series of "How To" manuals on muni- cipal -16,41 economic development. Ron Cromwell, President The focus of this manual is "How to Organize for Economic Development". John Hastings, Director Municipal Economic Development Program It will help Canadian municipalities Federation of Canadian Municipalities i organize for new and improved economic 24 Clarence Street development efforts. It will be useful to Ottawa, Ontario municipal staff who develop programs and KIN 5P3 (613) 237-5221 I Federation of Canadian Municipalities Municipal Economic Development Program How to Organize for Economic Development Table of Contents Page introduction 3 What is Economic Development7 j Why have an Organized Approach? Why should the Municipality take the lead? How does the Community get started? 4 What are the key first step of the New Economic Development Organization? 9 How does the community manage the effort and measure the results? 11 i introduction What is Economic Development? ■ it establishes clear accountability for results, thereby ensuring that projects are completed successfully and on time; and The economies of Canada and the ■ it maximizes the value received for the world are changing. Economic money and effort spent. development programs help com- munities adjust to changing economic times careful organization ensures that the by: objectives of the community's economic ■ preserving and stimulating existing development efforts are met. businesses; Whyshould the Municipality take p ty ■ helping the community expand and the Lead? diversify its economic base: ■ removing barriers to economic growth; and here are numerous advantages in ■ encouraging new businesses to locate in the municipality taking the lead in Teconomic development efforts: the community. ■ the municipality is familiar with the Economic development is the tool to needs, resources and characteristics of focus the resources of the entire local area the local area; on job creation and economic growth. The energy that regions put into new economic ■ the municipality will consider all points initiatives cushions the effect of declining of view since it has the interests of the industries. Economic development leads to whole community at heart; increased employment and income and an improved quality of life for the area ■ the municipality is accessible to the entire citizens. . community; Why have an Organized Approach? ■ the municipality can mobilize the resources of the entire community: ■ the municipality has links with other n a rapidly changing world, economic orders of government which can be used development cannot be left to chance. to obtain advice and support; and just as businesses need an organized approach to be successful, so do communi- ■ the municipality often has employees ties seeking successful economic develop- with expertise to assist in effective eco- ment. Organization provides a number of nomic development. benefits: ■ it ensures that the community has a plan There is no doubt that the municipality The municipality is hi has the resources to be an effective innova- a utni. le position to to achieve its economic goals; for in economic development. create and stimulate ■ it enables the community to draw on the economic resources of all groups which can con- development. tribute to the general effort; i 3 How does the Community get Started? n organizing for economic develop- administrative needs. An optimum size ment, the community should take the is 8 to 15 members. Meetings should be following steps: regularly scheduled and minutes taken. 1. Establish an economic development task 2. Assess the Community's Current force; Economic Situation. The members of the Task Force draw on their knowledge of the With an organized 2. Assess the community's current eco- municipality and gather additional data to approach, the com- nomic situation; outline a preliminary understanding of: lunity can shape its 3. Develop a general economic develop- ■ types of industries in the municipality; own future. ment strategy; ■ size and character of the local labour 4. Examine alternative long-term force: organizational structures for economic development; ■ municipality's strengths and weaknesses; 5. Make recommendations on structure; ■ present economic development activities; and 6. Establish details of the structure; ■ opportunities for economic development 7. implement the structure; and which might exist. 8. Establish a permanent advisory A general understanding of the municipal- committee. ity's current economic situation will enable the Task Force to set a general economic Each of these steps is expanded in the direction for the community. Volume III of following paragraphs. this series, "How to Collect Data for Eco- nomic Development" will assist communi- 1. Establish An Economic Development ties at this stage. Task Force. The first step in organizing for economic development is to bring lead- 3. Develop a General Strategy. The Task ing citizens together to form a committee, Force now has enough data to develop a perhaps known as "the Mayor's Task general economic development strategy. Force on Economic Development". The For example, the Task Force might decide Task force must be Task Force is a temporary organization that: representative with a mandate to lay the ground work for a permanent economic development ■ expansion of the existing manufacturing structure. base represents the best opportunity for growth; The Task Force should consist of the Mayor as chairman and a membership ■ concentration on small business or tech- composed of individuals from the private nology related businesses in the central and public sector. For example, the Task thrust; or Force could include: elected officials, an economic development officer, a municipal ■ focus on community based third sector planner, Chamber of Commerce officials, employment creation presents the best business leaders, university/college officials, opportunity. and union representatives. The size of the Task Force should be small enough to in most cases the final strategy will be facilitate concensus building and limit a combination of several specific elements. 4 At this stage, the strategy provides general On the other hand, an economic develop- direction. Details will be worked out once ment organization based only on business the permanent organizational structure is involvement could: in place. ■ limit its activities solely to the issues and 4. Examine Alternative Long-term concerns of the private sector; Organizational Structures for Economic Development. The Task Force next exa- ■ be unaware of the long-term social mines the advantages and disadvantages of impacts of economic growth; alternative structures for a more permanent economic development organization in the ■ have less incentive to encourage competi- ti municipality. There are numerous alterna- tive businesses being established in the tives. The most common are: community; and P the Chamber of Commerce; ■ lack support from local government. ■ the Pla rdng Department of the municipality; The Planning Department • an and Economic Development Department; Municipalities can keep their economic Economic develop development efforts within their planning mentis more jobs ■ an independent Economic Development departments. In this case, the person(s) Corporation. responsible for economic development and a better qualityp report to the Commissioner of Planning of life. who in turn reports to Council or the chief Chamber of Commerce administrative officer. " In many communities, the economic This structure may be advantageous in development organization has been the small communities which have limited local Chamber of Commerce which primarily financial and human resources, and in represents the interests of the business large mature communities where there is community, limited land available for growth. In the latter instance, new development A business-centred economic development will almost always affect adjacent commu- structure is advantageous in that its nities and/or industrial and commercial members: operations. in these cases, planning considerations will play a significant role ■ understand how business operates and in facilitating new or expanding operations. what is needed to develop successful local enterprises; A separate municipal department, with an independent program and budget, and ■ have expertise in marketing and promo- headed by a Commissioner who reports tion strategies that can be unportant directly to Council or the chief admi7is- elements in economic development; trative officer, is a more usual way for municipalities to organize their economic ■ have easy access to the community's development effort. Municipal staff with business resources; and background and training in economic development would administer the ■ may be less susceptible to political program. considerations. I 5 � The Economic Development Department it may be, however, that more time and effort is required to achieve concensus A separate economic development among different interest groups. Four typical department: organization 5. Make Recommendations on Stricture. models exist •can concentrate its efforts directly on After examining the advantages and disad- economic development; vantages of the alternatives for the local community, the Task Force makes a ■has a better understanding of economic recommendation on the appropriate struc- development policies and programs; ture for the community, taking into account factors such as: ' may be more familiar with the economic development needs, resources and ■relative strength of public and private characteristics of the local area; and sector institutions; ■ can coordinate plans with other related ■ public and private human and financial municipal activities. resources to support the structure; A possible danger with a municipal eco- ■size of the community; nomic development department is that strategies and plans may not fully reflect a ■stage of development of the community; thorough understanding of the needs of the private sector. ■skills available in the municipality; and Economic Development Corporation ■whether the selected economic develop- ment strategy requires the primary effort Economic development corporations are a of the private sector, the public sector or relatively recent trend. Their membership a combination of both. includes a mixture of private and public sector representatives. Although there can 6. Establish Details of the Stricture. be some variation in funding and legal Once the type of economic development authority, economic development corpora- structure is chosen, the following specific tions are usually funded by municipal organizational details are decided, governments and private sector members. Corporations are managed by an independ- • Mandate. A written statement of purpose ent board of directors which reports to the is prepared. This enables the organization membership, including the municipality. and community to know what is expected of each other. Staff of an independent corporation can: ■ Relationships within the municipality. ■ readily use the resources and expertise of Formal reporting relationships are estab- all sectors of the community; lished. This will differ according to the organizational structure selected. * help prevent duplication of eff6rt between the private and public sector; ■ Procedures. In the case of a municipal organization, the procedures already exist ■ ensure decisions reached are relevant for for other departments and divisions. the community as a whole; and Where the economic development struc- ture is an independent corporate body a ■ encourage commitment from all sectors, constitution is developed. It will contain the regulations for membership size, 6 length of term, membership composition, hands over the responsibilities to the for- voting structure, quorum size, amending mally constituted body. formula, and duties and responsibilities. 8. Establish Permanent Advisory ■Leadership. The person chosen to lead Committee. A permanent advisory commit- the economic development program is tee will be needed to oversee the operations selected with care and should be sensitive of whichever economic development initiative to the needs of business, industry and is put in place. The permanent advisory the community. committee will review the economic development program and performance, • Staff'requirements. The type of skills and and advise on policy. number o people required for staffing is settled. The section on page 9 discusses in the Chamber of Commerce case it will staffing requirements in more detail. likely be a subcommitte of the Chamber. For the planning and the development ■ Budget. A budget is developed for the department models, the advisory committee w-Tiole economic development effort and will be separate and report to the relevant individual projects. It takes into consider- commissioner. The advisory committee for ation municipal expenditures and revenue the corporation structure will, in fact, be impacts. the Board of Directors itself. ■Funding. Possible funding sources (i.e. The advisory committee should be no eder , provincial, municipal govern- larger than 12 people. The recommended ments, businesses, associations) are iden- composition for a 10 person advisory com- tified and evaluated. A strategy is devel- mittee would be: two politicians,.five pri- The community oped to obtain the funding needed. vate sector representatives, one economic launches a new development staff, one labour representa- economic develop- ■ Location. A home-base for the organiza- tive and one academic. Membership should �i tionc is osen so that it is accessible to rotate, possibly on a three year staggered anent strategy the key players. Locating an economic basis. It is likely that many of the development department outside city hall appointees to the original task force will can often help the operation in its deal- be on the advisory committee. ings with the private sector. 7. Implement Structure. The Task Force oversees the implementation of the perma- nent economic development structure. It i i 7 Long Term Economic Development Organization Make recommendation on structure Examine alternative long-term Implement organizational structure structures Set up Task Force Develop Establish a strategy details of the structure i Assess the Establish community's permanent economic Advisory situation Committee 8 What are the Ivey First steps of the New cononc Development Organization? 0 After the organizational structure The data can be derived from a number is established, there are a num- of sources: expert opinion, federal, provin- ber of key first steps. cial, regional or municipal data, business or industry statistics, previous reports, sur- 1. Staffing. Appropriate staff will have veys, and consultants. The FCM economic to be hired. It is desirable that staff have development data base which is currently experience and training in areas such as: being created will contain the relevant business management, marketing, fund- information needed, raising, communications, public relations, politics and research. There should be a For those municipalities wishing to formal job description prepared for each collect the data themselves, the third FCM anticipated position. For the organization to economic development manual, "How to be effective, every staff member should Collect Data for Economic Development" have clearly assigned duties and responsi- elaborates on data required and sources of bilities and report to a more senior official. the data. All staffing decisions must be made within the constraints of the budget. In small 3. Analysis of Strengths, Weaknesses, municipalities where often only one staff Opportunities and Threats. The data person can be assigned to economic compiled on the community is analyzed to development, that person should have identify strengths, weaknesses, opportuni- as broad a background in the relevant ties and threats facing the region in its fields as possible. economic development efforts. 2. Comprehensive Data Gathering. It will The community can build on its strong also be necessary to compile detailed, com- resources and take remedial action where it prehensive data on the community. Prelimi- is weak. The recognition of opportunities nary data will have been gathered by the and potential threats will allow the commu- �� Task Force. The permanent structure will nity to narrow its focus, making more expand on the Task Force's work to effective use of limited resources. include such information as: For example, an analysis of a commu- ■ present economic development programs nity's weaknesses may determine that its and activities; shortage of local technical training pro- grams, has resulted in a serious deficiency ■ employment by activity; of skilled and semi-skilled labourers. j Appropriate action plans can then be ■ tax base; implemented. It is at this stage that the problems and opportunities for special ■ availability of skilled labour; groups such as youth, women and immigrants should be addressed if ■ transportation networks; appropriate. . types of natural resources; 4. Defuving Economic Development Goals. Based on the analysis of strengths, ■ proximity to large markets; weaknesses, opportunities and threats, the economic development organization outlines ■ available serviced industrial land; and the broad economic development goals of the community. This will give focus to the ■ local technical training courses. economic development effort. Goals could be retention of existing industry, economic 9 diversification, promoting small business, to attain these must be devised. Strategies reducing youth unemployment, etc. are basically road maps - a written sum- mary of how to move from your present 5. Specifying Objectives. Based on the position to your desired position. Follow- broad long-term goals, it is necessary to ing on the small business example, the have specific objectives in order to be effec- strategy could be to establish and staff a tive and measure results. For example, if small business incubator. the community's goal is small business The detailed plans of diversification the objective could be to Volume 11 in this series, "How to Prepare assist in the formation of five new busi- an Economic Development Strategy" the community's eco- t3' nesses per year over three years, describes the steps needed in this process. uric development program take shape. 6. Outlining Detailed Strategies. Once goals and objectives are set, the strategies Ingredients for Successful Economic Development Economic Comprehensive Data Development Gathering Organization Analysis of Strengths, Weaknesses, Opportunities and Threats Staff Defining Goals Specifying Objectives Outlining Strategies Implementing Strategies 10 How does the Co ium�y Manage the Effort and Measure the Results? or economic development to be suc- indicators to measure performance cessfui, it must be well managed should be measurable and quantifiable, and and its results must be measured, should, to the extent possible, be attributa- ble to the efforts of the economic develop- 1. Budgeting System. Annual budgets, ment program. The community's with monthly reports, provide a number economic develop- of benefits to the economic development Examples of measures include numbers of ment efforts have effort. For example: jobs created, numbers of new businesses, resulted in 200 new changes in the unemployment rate, outside ■it forces a review of the resources investment attracted, growth in population, jobs in the past year. required to achieve particular goals and and growth in the municipal tax base. objectives; ■it ensures that the distribution of the resources corresponds to the priorities of A Summary of How to Organize for the development plans; and Economic Development ■it ensures accountability and control. 2. Project Management System. Specific projects should be established to guide the Community implementation of the community's eco- nomic development strategies. For these projects to be completed on time and within budget, they must be properly managed. To ensure a project's success, Task force there should be: f( ■appointment of a project manager from within staff; ■clear objectives; Organized structure ■expected results; ■clear time and resource plans and budgets; and Develop i ■clear milestones to report against plans Select staff strategies and budgets. plans 3. Performance Measurement System. A performance measurement system is needed � to determine the success or failure of the economic development effort and should be Manage effort established for individual projects. Sum- and mary results for the entire program will be measure results formally reported to council or a board of directors on a regular basis. i 11 FCM he Federation of Canadian There are two basic types of FCM Municipalities (FCM) is an organi- membership; municipal and affiliate. The zation dedicated to addressing the FCM comprises over 300 municipalities of concerns of local government, every size and description, from high den- sity urban centres to outlying rural commu- Through its publications, meetings and nities, and 15 affiliate members, which conferences, the FCM keeps member include major provincial and territorial municipalities abreast of new developments municipal associations. in their primary areas of concern: economic development, housing, taxation and day-to- The Federation of Canadian Municipalities day local management and maintenance. 24 Clarence Street The Federation works to ensure that ties Ottawa, Ontario with other orders of government remain KIN 5P3 strong and trouble-free. The needs of (613) 237-5221 municipalities must be clearly expressed to provincial and federal leaders, because they are the needs of Canadians at the grass- roots level. The Federation's message is that Canadian urban and rural governments are a major source of community and eco- nomic strength, capable of governing in partnership with the provinces and the federal government. i