THE CORPORATION OF THE TOWN OF LINCOLN COUNCIL BUSINESS PLANNING (COMMITTEE OF THE WHOLE) ECONOMIC DEVELOPMENT

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1 THE CORPORATION OF THE TOWN OF LINCOLN COUNCIL BUSINESS PLANNING (COMMITTEE OF THE WHOLE) ECONOMIC DEVELOPMENT A G E N D A February 15, :00 p.m. Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. DECLARATIONS OF INTEREST 4. CONFIRMATION OF AGENDA 5. DELEGATIONS (a) (b) Memorandum of Understanding between Brock University and The Town of Lincoln, re: Research and Collaboration Initiative. Mario De Divitiis, C.E.O., Niagara Workforce Planning Board, re: Population and Jobs in the Town of Lincoln. 6. CORRESPONDENCE 7. REPORTS (a) Valerie Kuhns, Manager of Strategic Initiatives, Region of Niagara Economic Development, re: Regional and Town of Lincoln Economic Overview. (b) Report AD 17-01, Economic Development in a Lincoln. (c) Information Update, re: Town of Lincoln Economic Development Officer. (d) Information Update, re: Transit. 8. COUNCILLOR ENQUIRIES 9. NOTICE OF MOTION 10. ANNOUNCEMENTS 11. CLOSED SESSION Page 1 of 10

2 Page 12. ADJOURNMENT Page 2 of 10

3 Chief Administrative Officers (CAO s) Office TO: Council Business Planning (Committee of the Whole) Economic Development MEETING DATE: February 15, 2017 SUBJECT / REPORT NO: Economic Development in Lincoln, No. AD PREPARED BY: SUBMITTED BY: Mike Kirkopoulos Chief Administrative Officer (CAO), ext. 268 Mike Kirkopoulos, CAO RECOMMENDATION: 1. That Report No. AD 17-01, Economic Development in Lincoln, be received for information. Executive Summary Introduction to Economic Development: Town of Lincoln, Niagara Region The Foundational Elements: Council has seen the importance of ensuring the long-term sustainability of any community falls with its focus on ensuring that its community is diversified in terms of opportunity and is also a complete community one where people can live, work, play and grow. These are all characteristics that fall under the term economic development. When viewing the Town of Lincoln in that economic context, first and foremost, while the Town has a number of competitive advantages that set it apart from other municipalities, it is part of larger economic region and should be viewed with both contexts. As such, some of the variables we must look at extend beyond our borders (i.e., Brock University, VRIC, Goods Movement Corridors, and Niagara College as some examples). This report is intended to provide an overview as to economic development and its impacts and implications to the Town of Lincoln. As well, before developing a strategy, Council and teams both internal to the administration and the community at large must understand the foundation of what is economic development in the context of Lincoln, Niagara Region and South-western Ontario. Page 3 of 10

4 Report # AD PAGE 2 Innovation and change almost always results in uncertainty and the disruption of standard practices. In economic development terms, it is becoming increasingly clear that dynamism is critical to growth at the local, provincial and national levels. This means that municipalities must promote change and innovation - not hinder it, especially, if they intend to grow a prosperous community in today s globally competitive economy. The establishment of a positive business environment is one of the fundamental conditions required to implement this new orientation towards innovation. Lincoln must define innovation, fully embrace that innovation, and then establish the priority goal of creating an environment to allow it to flourish. Traditionally, a municipality has had the ability to impact the local business environment through five areas of policy: Customer service: A municipality must be considered Open for Business both in terms of perception and reality. Competition for economic development is becoming fierce and the field is busy and has more players than at any other time in our history. It is incumbent upon Councils to entrench this business friendly attitude in terms of policy and then provide the direction and resources to staff necessary to implement and deliver it. Regulatory items: The primary complaint from the business community in any municipality is not the regulations themselves but the way they are administered. A positive business climate must be developed by working directly with Business to establish acceptable standards for regulations and their implementation. Additionally, investors are seeking municipalities that are proactive in their vision for economic development. Meaning, if vacant land is available, the municipality undertake securing the proper zoning and other pre-approvals to expedite investment. Taxation: Taxation must be competitive, stable, equitable, and efficient. This is necessary in order to eliminate the burden of taxation currently being shouldered by an increasingly narrow slice of economic activity in the community; namely the non-residential class. Development-related incentives: There is simply no way to eliminate the use of incentives in economic development especially in a North American context. Therefore, the focus must be to ensure that the incentives used by the Region and Municipality are done so cost effectively and that they achieve the goals for which they were originally established. (i.e., CIP s, DC reductions, TIF, etc.) Physical infrastructure: The Municipality (with the Region) is responsible to plan and secure the implementation of new and reconstructed physical infrastructure (i.e. roads, water supply, sewers, and Page 4 of 10

5 Report # AD PAGE 3 potentially transit for example) which is the critical component of development capacity and long-term competitiveness. The foundational pieces of any strategy and plan for economic development for Lincoln and this region must include, but are not limited to the following: Education s role in innovation (Brock, VRIC, Niagara College, School Boards) Shovel-ready land Official Plan and Comprehensive Zoning By-Law alignment Small business and technology focuses Regional innovation networks Local infrastructure investments Seamless customer service Community development A plan for any brownfields Business improvement areas (BIAs) and urban centres Greening initiatives Waterfront and shoreline focus as a gift Quality of life indicators and local planning initiatives Health care access (WLMH and local family doctors) Workforce development Labour market Culture Youth retention and attraction Regional immigration strategy Implementation and delivery of any plan once constructed must have a number of considerations. For economic development, on the ground so to speak, in terms of delivery, one term often seen as the back bone is - business development. The primary purpose of the business development component of any economic development strategy is basic in nature - it is to increase the municipalities non-residential assessment base and create well-paying jobs in the community. The task is often more complex. The goals of diversification of any community s economic base and increasing the competitiveness of its businesses are complementary objectives that must be realized in order for Lincoln or Niagara as a whole to achieve financial sustainability and improve the standard of living of its residents. Sustainability, and not just as it relates to financial sustainability, is a key principle in the development of most economic development strategies. The term sustainable development is generally defined as a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations. The concept is interchangeable with the Triple Bottom Line (i.e. social, economic and environmental balance) approach that captures an expanded spectrum of values and criteria used for measuring both private and public sector organizations. It is a shareholder as opposed to stakeholder perspective on development. Page 5 of 10

6 Report # AD PAGE 4 The main pieces of business development are business attraction and business retention and expansion (BR&E). The next step for Lincoln on this particular item is the identification of key industry groups. Some of this work has begun already, but, it must be a focus of the municipality s new economic development resource in the coming months. Competition is fierce and decisions are made with a number of considerations in mind. Understanding those considerations is critical. Some of the key industry groups that have been identified include the following, but this is not an exhaustive list. Tourism (Wineries, Distillery, Craft Brewery) Advanced Manufacturing Agriculture (Farming is captured here) and Agri-Business (Food Processing) Technology (VRIC) Goods Movement Life Sciences Cultural (Creative) Groups Another important element of any economic development strategy will be the need to develop in partnership with the broader corporation of internal stakeholders a marketing strategy and action plan. There will be opportunities to do so at all levels (government Federal, Provincial and Municipal) and with other partner municipalities. Our goal with respect to that will be to conduct quantitative research. We will do so by conducting an online survey of all Lincoln businesses, a survey of other Regional and GTHA economic development practitioners. We will also undertake qualitative research, conduct stakeholder interviews and set up economic development strategic planning workshops and other engagement opportunities and processes. We will also reach out to the Regional networks both from a governmental and nongovernmental perspective. For example, the Federal Foreign Direct Investment (FDI) program and initiative is an excellent opportunity for Niagara region as a whole and must be part of any marketing initiative as well as other incentive programs. Another important element of ensuring that economic development, as both a function and mindset is recognized as integral to a municipality s well-being, is making sure all the pieces of it are considered. For example, one element not always associated with economic development but integral, is the culture of what some refer to as the creative industries (e.g., museums, arts, culture centres, music, film) Culture/creative industries typically include activities that focus on creating and leveraging value from intellectual property and creating products. These products can range from such things as music, film and applications/games; or providing business-tobusiness services including design, architecture, printing, computer programming, publishing, multimedia, digital media and crafts. This sector also includes festivals and visual and performing arts. Page 6 of 10

7 Report # AD PAGE 5 This industry above all contributes to quality of life and can add value to content and generate value for individuals and societies. They are knowledge and labour-intensive, create employment and wealth and nurture creativity. The raw material they are made from foster innovation in production and commercialization processes. Moving forward, immediate next steps include and will be focused on posting and beginning the recruitment of an Economic Development Officer (EDO). Once an EDO is secured, the individual will conduct a scan of current research that has been conducted by local area municipalities and Niagara Region to determine transferability to Lincoln strategy. Following that, the EDO, with SMT and the CAO s office, will work to develop and present for Council-consideration a work plan and strategy for economic development. ATTACHMENTS None Page 7 of 10

8 Information Update TO: Council Business Planning (Committee of the Whole) Economic Development DATE: February 15, 2017 SUBJECT: SUBMITTED BY: Transit Update Michael Kirkopoulos CAO INFORMATION: Members of Council, This information update serves to provide an update on transit projects across the region, including the regional Inter-Municipal Transit, Grimsby, and the Town of Lincoln pilot project. Inter-Municipal Transit (IMT) An update was provided to Council on Jan. 18, 2017, outlining the Niagara Transit Service Delivery and Governance Strategy from the regional working group consisting of local area municipality Mayors and CAOs, and Niagara Region Chair, CAO, and staff. At this time, the next steps for the proposed strategy include: The report will be presented to the city councils of St. Catharines, Niagara Falls and Welland starting Jan. 16. It is expected that the city councils will refer the consultant's report to municipal staff for a detailed review and report back in February 2017 before any decisions are taken The Niagara Transit Service Delivery and Governance Strategy will be presented to Niagara Regional Council in spring 2017, once the local councils of St. Catharines, Niagara Falls and Welland have had the opportunity to review and consider the direction If the municipalities of St. Catharines, Niagara Falls and Welland agree to create a consolidated transit system to service Niagara, Regional Council will have to provide "triple majority" support for this service direction before steps can be taken to consolidate More information can be located in the Niagara Transit Service Delivery and Governance Strategy Executive Summary. The Town of Lincoln s next steps as a result of the IMT proposed recommendations include reviewing the financial impact information and report back to Council prior to the IMT delegation to Council. Page 8 of 10

9 Page 2 Grimsby Transit In mid-february, The Town of Grimsby will consider approving feasibility of a local transit system. The first phase of the study included: Identify the current and future transportation needs of the community and the role that local public transit can play in meeting those needs; and Assess at a high level the feasibility of operating a local transit service within Grimsby. In their report, Dillon consulting provided the following as drivers for the business case for transit: 1. Provides mobility to members of the community 2. Supports the introduction of the future GO train service to Grimsby 3. Facilitates economic development and can reduce unemployment 4. Supports future plans for sustainable development and intensification 5. Contributes to a higher quality of life, including improved health and community participation rates Important to note, while all of the above benefits result from a transit system, all transit systems in North America and the world operate with a deficit. The revenue collected from passengers using transit will not exceed the capital and operating cost of providing the service, resulting in a municipal-subsidized service. Much like schools, parks and recreation facilities and roadway infrastructure, transit must be viewed as an investment in the community. If the Town of Grimsby decides in mid-february that a transit system is feasible, phase 2 of the transit investigation will include: Develop a service plan that aligns with the forecasted transit demand and is appropriate for the local context; Identify a preferred service delivery (governance) strategy that can be used to effectively deliver the selected service; Determine potential partnerships and opportunities to coordinate with other transportation service providers; and Explore funding opportunities and business models to deliver the service and help mitigate some of the financial implications of initiating a transit service. Phase one of the report references potential partnerships with the Town of Lincoln. While no formal conversations have occurred to date, phase 2 of their investigation indicates potential partnerships and opportunities. Town of Lincoln Transit Pilot Project Staff are targeting September 2017 to develop the internal working group that will scope out pilot project requirements such as securing a consultant through the RFP process to provide expertise on design, policy and operational details. Page 9 of 10

10 Page 3 Additionally, depending on outcomes of IMT and Grimsby transit, staff will be engaged as necessary on identifying linkages or opportunities for partnership as the pilot project is being scoped. Page 10 of 10

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