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2016-11-16 Growth Committee Agenda PacketCity of Saint John Growth Committee - Open Session AGENDA Wednesday, November 16, 2016 8:30 am 8th Floor Boardroom, City Hall 1. Call to Order Pages 1.1 Introductions and Meeting Overview. Mayor Darling 1 - 4 1.2 Discover Saint John 5-25 1.3 Enterprise Saint John 26-33 1.4 Coffee Break @ 10:00am 1.5 Saint John Waterfront Development 34-86 1.6 Saint John Industrial Parks 87-104 1.7 Concluding Remarks: Mayor Darling 1.8 Date of Next Meeting 1 Poeta Sy:1 Growth Committee Economic Development Agency Engagement November 16, 2016 Session Agenda 8:30-12:00 pm 8th floor Boardroom, City Hall 1. Introductions and Meeting Overview: Mayor Darling 2. Discover Saint John 3. Enterprise Saint John 4. Coffee Break 5. Saint John Waterfront Development 6. Saint John Industrial Parks 7. Concluding Remarks: Mayor Darling 1 8:30-8:40 am 8:40-9:20 am 9:20-10:00 am 10:00-10:10 am 10:10-10:50 am 10:50-11:30 am 11:30 am Meeting Preparation The City's Growth Committee is hosting an engagement session with its four City funded agencies to understand your respective service level priorities for 2017 and to discuss opportunities for greater collaboration in particular as it relates to advancing priorities of the Growth Committee and Common Council. This information will support the development of the City's 2017 operating budget and inform the Growth Strategy being developed by the Committee to advance a growth agenda for Saint John. A set of questions has been prepared to guide the discussion with the agencies and these are provided below to enable preparation for the meeting. To manage the meeting effectively, each of the agencies will have 40 minutes for discussion which includes 25 minutes to address the following five questions and 15 minutes for other follow-up questions and discussion. The Executive Directors of the agencies are also invited to bring a representative of their respective Boards to participate in the meeting. Should you wish to submit any presentation or written materials, the Committee would request that these be provided to the Clerk's Office by end of day Monday November 14, 2016. Please be advised that this session is being held in an open meeting of the Growth Committee. 1. Please share information on your current mandate, focus areas and resource requirements for 2017. Discuss what opportunities you see for alignment with the priorities adopted by Common Council for 2016-2020 (document is attached). 2. The City of Saint John intends to issue mandate letters for all of its agencies, boards and commissions. Please share with us your perspective on how these service expectations and related targets for the economic agencies should be formulated, monitored and evaluated over the year? 3. What are your 2017 targets associated with the key performance measures defined by Common Council and the Growth Committee K specifically including population growth, job creation and tax base growth? 4. Common Council adopted the recommendations of the Task Force on Economic Development recommendations in early 2016. Please share with us what actions your agency has taken and what actions you intend to take in 2017 to advance the recommendations adopted by Council: a. Creation and participation in a permanent inter -agency task force on cost-saving? b. Further integration of urban development and real estate functions amongst partners? c. Further integration of communications and marketing efforts? d. Further integrated strategy on investment attraction? e. 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I 'm ........................... „ mI„ .I„ mtx °'I U11 .1HHHHH 11)m UI IIIV °',m m'',m o �, m °Im sill ",m'' 118 �I �,, m �I m 1 „ m I!” 'gy°,m UI m I I!” oil E -I AN m a) m � o m 41. 41. N Li c: 0 SII 11111111111.1311 IN Im 91u 1111111111,' 1� Ea U11111 I u, t2 �I L- L— LIJ IN I I ER (DIt uj (DIt Q' Z I, Cl.� I rrrv_im MmmdMPNdM6." IN offox-M MF!O .... ....... � �T�z . UN ��a..enterprise MOST C ATATrr JOHN JL'1A1W 1 D Allyl roPnl�nulVlry November 16, 2016 • •, Discuss what opportunities you see for alignment with the prio7ritiies adopted by Common Council f P016-2020 (document is attached). Enterprise Saint John's mandate is to lead a REGIONAL economic development strategy and work in partnership with ONB and our local partners to support business start-ups, business retention and expansion, and attract new investment for the Saint John region. Enterprise Saint John is a REGIONAL partnership funded by the Town of Grand Bay - Westfield, The Town of Rothesay, the Town of Quispamsis, the Village of St. Martins and the City of Saint John. In addition, over 20 of our community's most engaged businesses contribute people, ideas and funding to this model. By focusing on potential entrepreneurs, existing entrepreneurs, high -potential businesses, and potential new businesses. Enterprise Saint John helps create and retain new jobs and drives economic growth. Research shows that 80% of growth in regional economies is driven by companies either starting in or expanding in the community and 20% comes from new outside investment. That is why 80% of our focus and resources are on supporting the growth of our own economy. Our strategy and related work plans build on our regional strengths and focus on sectors with the greatest return on investment. Energy, industrial Big Data, and Health and Life Science sectors are poised for growth and present unique opportunities for the Saint John region. Therefore, these sectors are areas of focus for business start-ups, expansion, and attraction. We also want to leverage and develop our key strengths including Our Technology, Our People and Our Strategic Location. Understanding the value of leveraging and developing our key strengths has led us to the vision of becoming "Canada's Most Connected Community". Enterprise Saint John's efforts align with the City of Saint John's priority of Growth and Prosperity, specifically to support the retention and attraction of businesses that create job opportunities. In fact, we do more than this. We also support business -start-ups and expansions. Supporting business start-ups was identified as a priority in Saint John's pin -it survey and we leverage funding from other partners to develop and deliver programs in this area. For the past 4 years, the City of Saint John has contributed $475,000, which is 0.3% of its budget, directly to Enterprise Saint John. This makes up about 25% of our total budget of $2 million. In comparison, the City of Halifax contributes 1.9% of its budget directly to the lead economic development agency which is 45% of their budget. It is because Enterprise Saint John is a REGIONAL agency leveraging funds from five RERONAL municipalities and private investors from ��a..enterprise m MOST AAT7 J COI�FY�f F(? l� l 1y fpP✓II�fUIVITV across the region that we can compete with cities like Halifax. We are requesting $475,000 from the City of Saint John in 2017 to deliver on the City of Saint John's priority of the attraction and retention of businesses that create job opportunities. This is the fifth consecutive year that we are able to deliver the same level of service to the city while asking for a zero percent increase in funding. RdIativdly SII ea kiiii iiiii g ..... ...... Populatlioln Population Ratio Opelratiung (Budget Budget Ratio % Bu dget to iPrinclipall iEc Dev Agen IHaUfaX Saint, IUclhn 417,658 70,053 5.361 1 873,000,000 $ 151,000,000 5.78, 1 190% 0.30' IH41l1fa EucteirpPudi.tc Funding, (000's) Prat°tnerslhlp saliY1111 Jcllhiill'III , Municipal $ 1,633. 4,5.30% $ 700 29.00' Investors $ 942 26.01 $ 275 11.40^ Project Funding '$ 1,031 28,5 $ 1,438 59.01, $ 3,505 $ 2„,413 As business people we also understand the importance of measuring performance and have KPIs that will measure the results of implementing our strategy. L9111*'111[•101:1 ' . w . w; ., • • . . • . w; • w; r shouldtargets for the economic agencies be formulated, monitored w; • evaluated over the year? We understand the City's need to ensure that its efforts are aligned to grow its population, jobs and tax base. We also believe that the focus of our efforts will help Council deliver on one of its recently adopted priorities - "to support the retention and attraction of businesses that create job opportunities". Having said that, our governance structure requires that all of our regional partners be involved in formulating service expectations. To be focussed and effective, it is critical that organizations be accountable to 1 master. In our case that is the Regional Oversight Committee. We do firmly believe that Enterprise Saint John's KPIs are consistent with Council's priorities and that through those KPIs, Council should be very comfortable that it's $475,000 investment in Enterprise Saint John returns good value. As we have already been doing this year, we would be pleased to continue to provide quarterly reports to Council with progress on our KPIs. The Board of Enterprise Saint John applauds Council for taking this approach and offers our team's full support of your effort to lead a multi -pronged approach to align objectives as part of a multi -pronged approach to economic development. 27 -SAINT JOHN MOST COI�FY�f F(? j'� l 1y fpP✓II�fUIVITV I will now turn things over to our CEO, Steve, to provide information and our response to questions 3 and 4 L9111 *`i i [•10�c31 What are your0associated performance defined by Common Council and the Growth Committee specifically including population growth, job creation and tax base growth? Below are our 2016 metrics and we have been sending quarterly updates to council on our progress towards these targets. We are in the process of finalizing our 2017 targets with our Board of Directors and we anticipate they will be very similar to 2016 targets. Business Reteintion/Expainsion New jobs from ex:istingi businesses 660 Investment Attraction NiU, New jobs from investment 193 attraction 300 192 Investment attraction leads 120 Capital expenditures $70,000,000, 0 mullliion, Innovation Private sector R&D $4,093,000 '1.6 million Impact on problems solved $101„040,00n0 10 rmniilllivn Entrepreneurs hip New businesses 18 25 Of the three key performance measures defined by Common Council, Enterprise Saint John's efforts are focused on delivering results for job creation. We indirectly contribute to population growth and tax base growth, but our internal KPIs do not include these targets. In addition, in the City of Saint John Council priorities related to Growth and Prosperity, the target related to business retention and attraction suggests measAg the change in the number of new businesses in ��a..enterprise m MOST A�TT J COI�FY�f F(? 1y fpP✓II�fUIVITV the city. We suggest Council review this target as according to the Economic Development Association of Canada, this may not be an effective measure. The reason for this is that it only measures registered businesses, many of which may not be active or expanding. We believe more valuable measures would include capital investments, annual payroll increases, and job retention and expansion. • 4 Common Council adopted the recommendationsof the Task Forceon Economic recommendations w;your agency has taken and what 2ctions you intend to take in 2017 to advance the recommendations adopted by Council: w; and participation , w• .n Further-• an of urban development and re. estate gpartners? integratedc) Further integration of communications and marketing efforts? d) Further strategy on investment attraction? Ongoing inf. w; . . cooperation between the f., and other economic., , partners f) Integrated strategy on immigration development, recruitment and retention? We are very interested in participating in this effort. In the mean time we have made efforts to reduce our expenses including the elimination of a shared admin position and reduce costs of premises by sub -letting additional space to Opportunities New Brunswick. Through cost saving measures and additional leveraged funding, the City's investment has remained consistent for 2013, 2014, 2015 and 2016. Other than the establishment of the Brick Park Knowledge Cluster concept to grow and attract knowledge industries to the uptown, we are not leading any efforts in this area. We are very supportive of the City's priority to embark on the neighbourhood planning process for the central peninsula. To implement the neighbourhood plan, we believe it will be important that the efforts of all partners are integrated. We fully support and believe that there are significant opportunities to more effectively manage our community's brand both internally and externally if we did this in a more collaborative way. We have worked with not only our 3 partners here today but a number of other organization and agencies to develop an Integrated Community Communications Framework. While there has been some success in the implementation of this framework, we believe that 1 agency should be identified to lead with others supporting by investing dollars and talent. Enterprise Saint John does not have the expertise to lead this but would be an enthusiastic and invested partner. Wel ��a..enterprise m MOST A�TT J COI�FY�f F(? 1y fpP✓II�fUIVITV We have taken the lead on this and together with our partners are developing the investment attraction plans that complements Canada's Most Connected Community Strategy. This has included identifying opportunities that the CETA will present. In 2017 initiatives to implement will include a modular fabrication attraction plan to support Barge Terminal Project, Foreign Trade Zone designation, renewable energy manufacturing attraction project, smart grid manufacturing opportunities strategy, data centre strategy development, Brick Park Knowledge Cluster and Investment Attraction video project. It should be noted that many of the resources and talent for all of these initiatives are provided by a number of regional partners. Ongoing information sharing and cooperationfour agencies and other econom levelopment partners We would like to comment on the ways in which collaboration is happening between our 4 agencies and other economic development partners. Some highlights: Saint John Industrial Parks -Joint promotion at North American modular fabrication show in Calgary, shared marketing and advertising in trade journals Saint John Waterfront Development - Referred potential tenants for Fundy Quay project including support efforts to finalize anchor tenant. Discover Saint John - In 2017-2018, Enterprise Saint John will facilitate a Smart Tourism project in collaboration with Discover Saint John, Port Saint John, the Hotel Association and UNB We believe that this is very important and timely. We were pleased to see that Council has asked staff to develop this strategy. The cities of Fredericton, Moncton and Halifax have developed their strategies and have been investing and supporting immigration efforts for the past number of years. With the Atlantic Canadian Premiers and Federal Immigration Minister establishing this as a priority, it will be important for our community to develop a strategy and coordinated effort. We see our role in supporting this strategy focused on identifying positions and skills required by businesses in our region. 7qTff. How can the economic development governance structure be optimized in Saint John to deliver maximum growth for the City of Saint John? - The 11 -member volunteer board of directors of Enterprise Saint John is appointed by and is accountable to the Regional Oversight Committee (5 mayors plus 2 representatives of the private sector investors). This governance structure was developed on behalf of the municipalities and was approved by the 5 regional municipal councils in 2013. - We are often asked why a regional approach to growing the economy is better than an individual municipal approach. We compete every day with steer communities across North America for ��a..enterprise m MOST A�TT J COI�FY�f F(? 1y fpP✓II�fUIVITV business start-ups, expansions of existing companies or attraction of new investment. We must ensure that we have the strongest possible value proposition including, size of population, workforce and available real estate. We are stronger as a region of 125,000 people than a city of 70,000 people. The Enterprise Saint John model is consistent with economic development best practices, that include partnerships between regional municipalities and the private sector. Also, many of the communities we compete against have significantly larger economic development budgets. Together with our partner and project funding the City's investment of $475,000 (our funding request for 2017) is leveraged over 4 times which will enable us to invest over $2M in initiatives and programs to grow the economy in 2017. We believe this regional approach will maximize growth for the City of Saint John. CLOSING COMMENT - Suggest Board member provides brief closing statement with key message. 31 enterpriseMOST -SAINT JOHN WA CC 9 LU H a m 0 LU W Q W W Z m LL 0 0 U H 06 0 Z W W iC W oc OLLJ Irop O O O ^Z r -..O 'N' J z Ln CW G � W Z Lil Z = N O LLI Z Z Q W N LL OW ~ W V N W 6 lG 0 0 ri q, I„ O w N Z Z% O O J Vf Z J Z O Q J x J O LU 06 Z O� � w o Z j p Z W 0 d oC Q x cn w w J Z m U = m Q m a O U Ln a Ln N LU r cr } 00 N H O (D W N Q m x LLJ LLJ c- 0 CL Ml MENEM 4=J wj � oW a � cro 0 0 T -I PI O E W-0 C: cu Q� E0 m O C� > 0 C: CU m �U E 0 •O O O E C: 0 O •� V O O U Q Q � � CU 4-0 m0 O }, C 00 O O CC PI FI x W o � _ Ec N a) o 0 cn m E U U) o 32 (D i : L a) Co o a) cna E cr ca � 0.— �s c/) cnzo co #A ^a) W a) i � o e�cn V 4a E ca _ � O U a, c 2 co L Co C: C C/) L C/) ;, I .L ", o LM 0 C:CU W ��z^�'a� a L W W o � V J J ;�_�� .� a) o C: ie }' 'o ca _a-2� O W Q a) o E U o 32 (D i : o 0) Co E ca � C " �s CU o 0 o U) , o O Rli] 0 ca 0 3 L 0 m O O O O ■00 4-0 W a U U m Z a) 'U O 0) m m a) x O m ^L W a) 06 U O 1 U vI V O LL m E L 11 cr co aj a) N a) O L O cn cn a) m E 06 cn 'o CL U U a) CL cn r. . a cncn CL a) I � a � CL O a � U U_ cu a) N O cn C 0 a O L 0 CL Z) Em u u ow O Q tea/ ry a) a Q E O Q C : O E cu— � O N � Uv Q C� pE0�cncy)ccL LL Q-� ,all IIIIIIIIIIIIIII, a u W ♦--+ AAxx W a) • L Q Ca O X UU) N O -0 N cn •— E N to + c a) � Ech CL -0 O a) 06 Q E N 0 (� � J .V •� O N5)cu� _ QO>�S•N Om Q _� �0 0•� � fu Cnmcp"C: o:3mmoo 2E—u)w20Qcn000 a u 51 'I x� CIO E CIOCIO • O 10 O W O E42 (V r1 cu I..L � � Q N N 0 m L.L (R O x CIO a) 0 a) O O a)" " -0>w Q}' L- N cu ca N }' ca OQ U�E c6 O cu }' Cu E 22: z a- U z ui (n — m 2 i� (n) bt l `.. 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D O E m .O .V E E O V �J O O E c,. li ') m J,d W A• � � a a� 4� r = c 4� E N 4� E O V > 0 L) a) E > a� a) a) �a) 0 0 ECl) Z 0� LU >% . > C/) U c 0 ° c Z �CU 0 0 cn CO C: 0) E 0 2 co v0 CO Ni M Y� ,45 t Im M DRAFT Mandate letter: It will be expected that SJDC will collaborate with City, Province and Federal Governments to align, where possible, regards to efforts of economic development in the urban core. The City of Saint John would expect SJDC to partner closely with businesses and industry sectors to support their efforts to increase economic development, investment attraction and sector innovation. SJDC will be held accountable for; • close collaboration with colleagues; • meaningful engagement with related organizations and general public • constructive interaction with the Saint John businesses, builders, developers, organized labour, the broader public sector, and the not- for-profit and charitable sectors; • identifying ways to find solutions and avoid escalating conflicts unnecessarily. • recognize the value and demonstrate professionalism when conversing with and cooperating with appropriate media requests and interactions. • reflect true community values - honesty, hard work, fiscal prudence, and generosity of spirit. As a key economic development agency in Saint John, SJDC's overarching goal should reflect a concentration to grow, innovate and expand the local economy through the Corporation's mandate in conjunction with PlanSJ and related municipal legislation. It is expected, an economic development agenda for SJDC should encompass several top priorities; • An emphasis on city centre core development, including waterfront developments and infill strategy opportunities. • Work collaboratively with commercial real estate firms, builders and developers to encourage opportunities and development potential. • Develop and implement an investment attraction strategy that focuses on tax base growth initiatives. • Develop a strategic investment portfolio that builds on competitive advantages. E:16'7 • Support partnering agencies and other key economic development organizations to maximize impact, influence and innovation whenever necessary. • Work to support competitive intelligence and advantages and share relevant data with economic development colleagues for the betterment of community growth. 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