Final Report. Town of Ajax. Economic Development + Tourism Strategy

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1 Final Report Town of Ajax Economic Development + Tourism Strategy May 2010

2 Contents Executive Summary 1 Introduction Purpose of the Report Approach 16 2 Economic Base Analysis Location in the Greater Toronto Area Population Growth Population by Age Structure Ethnic Diversity Labour Force Profile Labour Force by Industry Labour Force Flow Pattern Commuting Flows by Place of Work Labour Force by Occupation Ajax s Creative Economy The Creative Economy Defined Creative Occupations Defined Creative Occupations Educational Attainment Income Levels Summary of Findings 39 3 Industry Sector Analysis Location Quotients Analysis Business Patterns Assessment Key Business Characteristics Creative Businesses and Enterprises Target Sector Opportunities Business and Information Technology Services Sector Health Care and Social Services Sector 52 Town of Ajax Economic Development + Tourism Strategy 2 Page

3 3.3.3 Wholesale Trade Sector Sustainable Energy & Technology-Based Manufacturing Sector Tourism Sector 3.4 Summary of Findings 4 Employment Land Review 4.1 Assessment of Ajax s Employment Areas Quality of Eastern GTA Industrial Product Quality of Ajax Employment Lands 5 SWOT Assessment 5.1 Strengths Depth of Skilled Workforce Growth in Cultural Diversity Housing Affordability Strong Regional Energy Sector Good Quality of Life Good Range of Tourism Assets Serviced, Shovel-ready Employment Land Presence of and Proximity to Post Secondary Education Institutions Competitive Business Costs Accessibility to 400 Series Highways 5.2 Weaknesses Lack of a Common Community Vision Bedroom Community Mentality Transportation Infrastructure Lack of a Unique Identity or Brand No Tourism Brand Lack of a Vibrant Downtown Pickering Village not Positioned as a Destination Failure to Leverage Regional Assets Lack of Local Business Amenities Lack of Recognition that Manufacturing is Playing at a Global Level 5.3 Opportunities Target Investment Attraction Efforts Ensure that Small Businesses are Sustainable Promote Green Initiatives in the Town s Older Industrial Areas Town of Ajax Economic Development + Tourism Strategy 3 P age

4 5.3.4 Attract Knowledge-Based Employment Leverage the Local Cultural Diversity Create Stronger Linkages with Post Secondary Institutions Develop Downtown Ajax into a Civic and Business Centre Position Pickering Village as a Cultural Destination Develop Ajax s Tourism Product Offering Capitalize on Emerging Culinary Tourism Market Create a Unique Marketing Message 5.4 Threats Resistance to Change No Incentive for Landowners to sell Employment Lands Decline of Manufacturing Sector Inadequate Business Tools for the Knowledge Based Workforce Strong Competition for Tourism Dollars 6 Framing the Economic Development Strategy 6.1 Current Policy Framework Town of Ajax Strategic Plan and Community Vision Ajax Integrated Community Arts and Cultural Plan Pickering Village Land Use Planning and Urban Design Study A Strategy to Develop the Tourism Industry in Durham Region On the City s Edge Creative Economy Strategy for Durham Region, Ongoing Economic Development Programming Initiatives 6.3 Emergence of Key Themes Target Strategic Growth to Ensure Economic Sustainability Leverage Regional Opportunities and Assets Strengthen Local Business Community Create Places that Attract Investment and Interest Reflect a Growing Creative Culture Broaden Marketing and Promotional Efforts 7 The Strategy 7.1 Setting the Vision 8 Performance Monitoring and Metrics 8.1 Performance Measurement 8.2 The Logic Model of Performance Management Town of Ajax Economic Development + Tourism Strategy 4 P age

5 8.3 Economic Development Metrics 8.4 Performance Measures to Consider 8.5 Providing Top-Notch Service A Strong Web Presence 9 Conclusion Town of Ajax Economic Development + Tourism Strategy 5 P age

6 List of Figures Figure 1 Location in the Greater Toronto Area Figure 2 - Historic and Current Population Growth, 1996 to Figure 3 Projected Population Growth, 2006 to Figure 4 - Age Structure, Town of Ajax, 2001 and Figure 5 - Population Growth by Age Group, 2001 to Figure 6 - Population by Visible Minority Status, Figure 7 Top 10 Immigrant Populations by Country of Origin, Figure 8 Town of Ajax Labour Force Profile Comparison, 2001, 2006 and Figure 9 - Labour Force by Industry, Town of Ajax, 2001, 2006 and Figure 10 - Labour Force Growth by Industry, Town of Ajax, 2001, 2006 and Figure 11 - Labour Flow Analysis, Labour Force 15 Years and Over by Industry, Town of Ajax, Figure 12 - Commuting Flows, Ajax as a Place of Residence, Census Subdivisions, Figure 13 - Commuting Flows, Ajax as a Place of Work, Census Subdivisions, Figure 14 - Labour Force by Occupation, 2001, 2006 and Figure 15 - Labour Force Growth by Occupation, Town of Ajax, 2001, 2006 and Figure 16 - Creative Economy Occupations Figure 17 - Labour Force by Creative Occupations, Town of Ajax, 2001 to Figure 18 - Educational Profile, Town of Ajax, Region of Durham and Province of Ontario, Figure 19 - Post-secondary Education Profile, by Major Field of Study, Town of Ajax, Figure 20 - Proportion of Total Population with Personal Income, 2000 and Figure 21 - Proportion of Households by Income, 2000 and Figure 22 - Location Quotients for 2-Digit NAICS Industries, Town of Ajax, Figure 23 - Location Quotients for 2-Digit NAICS Industries, Region of Durham (Census Division), Figure 24 - Number of Business Establishments by Industry, Town of Ajax & Durham Region, June 2003 and Figure 25 - Business Establishments by Size, Town of Ajax, June Figure 26 Creative Business Establishments, Town of Ajax, June 2003 and Figure 27 Tourism Industry, Town of Ajax, 2001 to Figure 28 Comparison of key statistics in Eastern GTA, Durham Region and Ajax Figure 29 Ajax Employment Areas Figure 30 Ajax Employment Areas Target Sectors, Key Location Criteria, Specific Recommendations Figure 31 Performance Management Logic Model Figure 32 Markham QSQP Model Figure 33 Community Vitality Index for Wakefield, Quebec Figure 34 - Economic Development Measures to Consider for Core Responsibilities Figure 35 - Evolution of Economic Development Services Town of Ajax Economic Development + Tourism Strategy 6 P age

7 Appendices I II. III IV V VI Key Document Summaries National American Industry Classification System (NAICS) Definitions National Occupation Classification (NOC) Definitions Ajax Economic Development and Tourism Survey Results Stakeholder Interview Participants Tourism/Product Match Town of Ajax Economic Development + Tourism Strategy 7 P age

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9 Executive Summary The Town of Ajax has seen rapid population growth in recent years due in part to its location on the eastern side of the GTA. The benefits of having one of the most affordable housing markets in the Greater Toronto Area and proximity to Toronto has driven much of this population growth. However, the expectations that the community would realize economic opportunities in terms of related employment growth and business investment have not been achieved. Coupled with these observations, is the fact that both the global and provincial economies are changing - rapidly and irreversibly. The decline of manufacturing in leading industrialized economies, the aging of the baby boom generation, the dramatic increase in immigration and its implications for Canada s workforce, the rise of a highly mobile knowledge-based workforce all of these new realities hold the potential to shape and challenge Ajax opportunities for future growth. For the Town to embark on an economic development and tourism strategy at this time, requires a fresh approach. While the traditional models of investment attraction INDUSTRIAL RECRUITMENT + SITES = JOBS remain viable, Ajax is well positioned to benefit from the economic development and tourism approach of larger jurisdictions (i.e. Region of Durham) and better capitalize on the strengths and talent of its workforce and the unique community assets that contribute to the Town s quality of life experience of its residents. This new approach puts INNOVATION + TALENT + QUALITY OF PLACE at the forefront of economic development programming for communities determined to attract high value, sustainable employment and investment. By taking this approach, the Town will be able to better position and market itself as progressive and responsive to both the demands of the marketplace and ultimately its residents those that live in the community now and those that will come in the future. Key Objectives The overall objectives for the Town s economic development and tourism planning process include: providing the Town of Ajax with guidance and support for the efficient use of resources and to encourage the development of knowledge by Town staff and Council on issues related to economic development and tourism; identifying strategic directions and objectives that support the strengths of Ajax current economic base and incorporate new opportunities for economic growth; recommending a direction and tactics that support increased inter-municipal collaboration among area municipal and regional economic development departments; and identifying action plans for reaching the Town s goals and an approach for monitoring and reviewing progress on the implementation of the strategy. Millier Dickinson Blais was contracted by the Town of Ajax to prepare an action oriented and innovative economic development and tourism strategy that would guide the economic development activities of the Town. The approach to the creation of this economic development and tourism strategy has included several key components: 1. A background and literature review (refer to Appendix I for key background document summaries); 2. An economic base analysis of the Town of Ajax and surrounding area; Town of Ajax Economic Development + Tourism Strategy 9 P age

10 3. Community consultation in the form of focus groups, stakeholder interviews and community surveys; 4. A SWOT assessment (strengths, weaknesses, opportunities and threats) to determine the key issues impacting the Town s ability to attract and retain business investment; 5. The identification of key sectors and opportunities for economic growth; and 6. Consideration of key performance indicators to ensure effective implementation of the economic development and tourism strategy. The resulting strategy is both visionary and practical; and more effectively positions the Town of Ajax to respond to emerging opportunities as it relates to business investment and growth, both now and in the future. Summary of Key Findings Economic Base Analysis The Town of Ajax has experienced strong population growth in recent years which has translated into strong labour force growth across a broad range of industries. The Town is clearly a significant exporter of employment to other jurisdictions, particularly Toronto, but opportunities for growth and business investment have emerged. Based on a high level review of the Ajax economy including its recent labour force performance, the following findings are considered relevant to the development of a Town of Ajax Economic Development and Tourism Strategy. The current population of the Town of Ajax has increased 39.9% from 1996 to Since 2006, Ajax is estimated to have grown by an additional 16.7% or 15,060 people. Much of this growth is fuelled by the Town s available municipal infrastructure capacity and overall housing affordability in the Greater Toronto Area. The strong rate of growth illustrates Ajax continuing appeal to families as well as the broader population. The Town of Ajax is a comparatively young community with 30.8% of the population under the age of 20. However, the strongest rate of growth is occurring in the population years of age suggesting the presence of older families. This is reinforced by the concentration of population under 20 years of age. This future workforce represents a significant opportunity for the Town to maintain a young workforce where other communities across Ontario are dealing with an aging workforce - provided advanced education and employment opportunities are available. The population by visible minority status in the Town of Ajax grew by 79.1% between 2001 and 2006 based on strong growth from the Southeast Asian, Arab, Filipino and Black residents. Visible minorities comprise 34.1% of the local population compared to 22.5% in the Province. With future labour force growth in the province dependent on the attraction and immigration of skilled workers from outside of North America, the Town of Ajax is well positioned to attract and retain workers from diverse cultural groups. This will help to ensure strong future competitiveness and economic growth and should factor in any of the Town s marketing and promotional efforts. The Town of Ajax has a higher proportion of households earning in excess of $90,000 per year compared to the Region of Durham and the Province. With average household incomes estimated to increase, higher disposable incomes may translate into a demand for a greater Town of Ajax Economic Development + Tourism Strategy 10 P age

11 range of retail, dining, entertainment and recreation experiences in the town and personal service offerings. Consistent with Ajax strong population growth, the labour force growth is estimated to have increased by 46.6% from 2001 to The highest proportion of its workforce is employed in retail trade, manufacturing and health care and social assistance industries. While the labour force is fairly diversified, local employment opportunities are limited to 24,360 jobs across the Ajax economy. The three largest employment sectors were retail trade (4,495 jobs), manufacturing (3,930 jobs) and health care & social assistance (2,405 jobs) industries. Approximately half (47.3%) of Ajax labour force works in Toronto. Only 20.4% of Ajax labour force fills jobs in the town. This finding demonstrates the continuing importance and interdependence of the broader regional economy as it relates to economic growth as well as employment and investment opportunities. At the present time the highest levels of net export of labour are occurring in finance and insurance (3,360 jobs), professional, scientific and technical services (2,135 jobs), construction (1,945 jobs) and public administration (1,910 jobs) industries. In total the Town exports 23,910 employees. The nature of this employment suggests that it may be difficult to capture this workforce since many of these jobs can only be completed in large financial and corporate centres. Occupational information for the Town of Ajax suggests a concentration of skills in business, finance and administration occupations and sales and service occupations. Occupations that show the highest rate of growth include social science, education, government service and religion and health. These results are consistent with an overall trend in the province towards an economy dominated by service producing industries and occupations rather than goods producing industries and occupations. People engaged in creative occupations currently comprise 34.5% of the Town s workforce (20,770 workers) an increase of 46.3% since Despite this strong performance and the concentration of workers in creative occupations, the Town of Ajax is similar on average to attracting and retaining these workers compared to the Province (34.7% in 2006). The knowledge and skill sets in Ajax represent opportunities to foster business and entrepreneurial growth. Summary of Findings Industry Sector Analysis Much of the Town s recent labour force growth has been fuelled by population growth rather than any significant competitive advantage on the part of the Town of Ajax. An analysis of the Town s business and industry specialization reveals that the highest concentration of labour, as compared to the Province is in: Utilities, Finance and Insurance, Information and Cultural Industries, Wholesale Trade and Retail Trade. An analysis of the Region of Durham s business and industry specialization reveals four consistent sectors of concentration: Utilities, Finance and Insurance, Information and Cultural Industries and Wholesale Trade. Town of Ajax Economic Development + Tourism Strategy 11 P age

12 Business growth is also a strong indicator of economic potential within a local or provincial economy. In the case of the Town of Ajax, the highest proportion of business establishments were in: Professional, Scientific and Technical Services, Construction and Other Services There was a 24.2% increase in the number of establishments in the Town of Ajax from June 2003 to June 2009 with much of this growth occurring in: Other Services, Educational Services, Transportation and Warehousing, Professional, Scientific and Technical Services, Retail Trade, and Retail Estate and Rental and Leasing. A total of 1,836 establishments in Ajax reported employees. The majority of these establishments employ less than 10 people, with 1,091 establishments employing 1-4 people and 337 establishments employing 5-9 people. While this suggests a high level of entrepreneurism it has implications for local economic development efforts with regards to support for small business to help them grow into 10 and 25 employee companies, e.g. business mentoring, business planning and development of export strategies. Creative businesses grew by 17.9% in Ajax between 2003 and Many of these establishments provide web + software, business consulting, and engineering services. The highest rate of business growth is in engineering, web + software and design services. Based on the current performance of the Town the following sectors should form the basis for its business investment attraction and expansion efforts in the future: o Business Services and Information Technology Services Legal services, accounting, financial services, specialized design, architecture and engineering o Health Care and Social Services Health care practitioners, medical and diagnostic laboratories, research and development laboratories and associated manufacturing o Wholesale Trade Consumer products, support activities for health care and manufacturing sectors o Sustainable Energy & Technology Based Manufacturing Non-residential, public infrastructure and utilities construction Technology based automotive parts and aerospace manufacturing. o Tourism Arts, entertainment and recreation services Accommodation and food services. Investment attraction efforts must address both the attraction of business operations and the need to attract, develop and sustain the workforce required to support the expansion and development of these sectors locally. Town of Ajax Economic Development + Tourism Strategy 12 P age

13 Summary of Findings SWOT Assessment A SWOT Assessment (Strengths, Weaknesses, Opportunities and Threats) was undertaken to examine the Town of Ajax s ability to support the attraction, retention and expansion of business and industrial investment, the Town s capacity to deliver on economic development activities and programming and the overall direction of the strategy and the sustainability of the community over the longer term. This effort was accomplished through a background review and discussions with business and community leaders. More than 60 individuals participated in the strategy s consultation process which included focus group sessions, as well as telephone and face to face interviews. Stakeholders included representatives from government, health and education, arts and culture, business, and the development community. A further 154 participants from across all business sectors participated in an electronic survey that was hosted by the Town, which gathered additional information from the business community and public atlarge. The findings associated with this include: Strengths Depth of Skilled Workforce Growth in Cultural Diversity Housing Affordability Strong Regional Energy Sector Good Quality of Life Good Range of Tourism Assets Serviced, Shovel-ready Employment Land Presence of and Proximity to Post Secondary Education Institutions Competitive Business Costs Accessibility to 400 Series Highways Weaknesses Lack of a Common Community Vision Lack of a Vibrant Downtown Bedroom Community Mentality Pickering Village not Positioned as a Destination Transportation Infrastructure Lack of a Unique Identity or Brand No Tourism Brand Failure to Leverage Regional Assets Lack of Local Business Amenities Lack of Recognition that Manufacturing is Playing at a Global Level Town of Ajax Economic Development + Tourism Strategy 13 P age

14 Opportunities Target Investment Attraction Efforts Develop Downtown Ajax into a Civic and Business Centre Ensure that Small Businesses are Sustainable Position Pickering Village as a Cultural Destination Promote Green Initiatives in the Town s Older Industrial Areas Attract Knowledge-Based Employment Leverage the Local Cultural Diversity Develop Ajax s Tourism Product Offering Capitalize on Emerging Culinary Tourism Market Create a Unique Marketing Message Create Stronger Linkages with Post Secondary Institutions Threats Resistance to Change No Incentive for Landowners to sell Employment Lands Inadequate Business Tools for the Knowledge Based Workforce Strong Competition for Tourism Dollars Decline of Manufacturing Sector Framing the Strategy The Economic Development + Tourism Strategy builds on the VISION statement established in the Town of Ajax s Corporate Strategic Plan, as well as the guiding principle of economic prosperity wherein the Town will strive to create an environment which welcomes business, while supporting and nurturing those currently in the community. A key consideration in the development of an Economic Development and Tourism Strategy for the Town of Ajax is the anticipated evolution of economic development and tourism programming in the community as it strives to fulfil its potential as a sustainable and highly liveable community in the Greater Toronto Area. The resulting MANDATE for the Town of Ajax Economic Development Office is built around six broad goals that reflect the findings of this report, as well as the input received during the consultation phase of the strategy development. The GOALS and associated ACTIONS that follow are built around the town assuming more of a leadership role with respect to its future economic growth and a more effective approach to the development and implementation of sustainable economic development practices. Town of Ajax Economic Development + Tourism Strategy 14 P age

15 the vision the mandate the goals The Town will capitalize on its position within the Greater Toronto Area and utilize its strengths to the advantage of both business and residents and respond positively to the prospects of growth and by investing in needed infrastructure and focusing discussion and investment on innovative ideas that will ensure the Town is sustainable in every sense economically, environmentally and socially. For the Town of Ajax to effectively position itself as an ideal location for business and entrepreneurship, a liveable community for families and professionals and a culturally rich and vibrant community to experience and explore, it is essential that an economic development and tourism strategy build on the talent of the workforce and local entrepreneurs, attract and retain knowledge-based employment, and seek to improve community infrastructure and assets. The six goals for the Town of Ajax Economic Development + Tourism Strategy are: 1. The Town of Ajax will be strategic in its approach to economic growth by engaging with the development community, business, regional stakeholders and senior levels of government in the attraction of business and investment in its target sectors. 2. The Town of Ajax will leverage regional assets and opportunities to advance targeted business investment, peer to peer networking and innovation within its local business community. 3. The Town of Ajax will drive SME growth by cultivating an entrepreneurial culture and effectively supporting and engaging with our business and stakeholder community. 4. The Town of Ajax will create `places` that attract investment and interest to the community and demonstrate the Town`s liveability and diverse range of arts and cultural experiences. 5. The Town of Ajax will profile and promote the community`s creative industries as a key element of its economic and tourism development activities. 6. The Town of Ajax will broaden its marketing and promotion efforts to reflect the community`s aspirations, a commitment to sustainable growth and the potential for business investment and employment. It should be noted that that prioritization of these recommendations is intended to reflect a logical sequence of activities, with each action in the strategy contributing to a greater level of success as it relates to economic development and investment in the community. It is also important to recognize that the implementation of this strategy does not happen in isolation of other strategic initiatives undertaken by the Town or key local and regional stakeholders. A more detailed discussion of the actions required to achieve each of these goals is outlined in Section 7 of the report. An implementation plan will also be developed to address the budget, resources and more detailed timing of each priority action. Town of Ajax Economic Development + Tourism Strategy 15 P age

16 1 Introduction As competition for private and public investment becomes increasingly intense, more and more municipalities are assuming greater responsibility for their own economic development efforts. The impact of fundamental shifts in local and provincial economies, the prominence of the Internet as a business tool, ongoing fiscal constraints and the complexity of business relationships makes it necessary to establish community priorities for growth and investment that ensure a more realistic approach to economic development. For this reason an Economic Development and Tourism Strategy for the Town of Ajax must be clear on the direction and the manner in which the Town will define both economic development and tourism in the future. 1.1 Purpose of the Report Strategic planning of this nature is one of the most important tools that an organization can use for effective development. It is a means for establishing and maintaining essential programming and activities based on current and emerging economic opportunities, local constraints and the needs of a community from the perspective of business and the public at large. A cornerstone to developing an economic development and tourism strategy for the Town of Ajax is an understanding of a community s current competitive advantages and disadvantages with respect to the attraction and retention of business investment and people population base, labour force, business characteristics as well as its potential emerging industries, presence of entrepreneurs and capacity for innovation and commercialization. Millier Dickinson Blais was contracted by the Town of Ajax to prepare an economic development and tourism strategy that would guide the economic development activities of the Town. Given the current market volatility and unpredictable nature of the provincial economy at present, the strategy has given consideration to the short term (1-3 years), medium term (3-5 years) and longer term (5-10 years) opportunities for economic growth in the community. The overall objectives for the Town s economic development and tourism planning process include: providing the Town of Ajax with guidance and support for the efficient use of resources and to encourage the development of knowledge by Town staff and Council on issues related to economic development and tourism; identifying strategic directions and objectives that support the strengths of Ajax current economic base and incorporate new opportunities for economic growth; recommending a direction and tactics that support increased inter-municipal collaboration among area municipal and regional economic development departments; and identifying action plans for reaching the Town s goals and an approach for monitoring and reviewing progress on the implementation of the strategy. 1.2 Approach The approach to the creation of an economic development and tourism strategy for the Town of Ajax has included several key components: Town of Ajax Economic Development + Tourism Strategy 16 P age

17 A background and literature review (refer to Appendix I for key background document summaries); An economic base analysis of the Town of Ajax and surrounding area; Community consultation in the form of focus groups, stakeholder interviews and community surveys; A SWOT assessment (strengths, weaknesses, opportunities and threats) to determine the key issues impacting the Town s ability to attract and retain business investment; The identification of key sectors and opportunities for economic growth; and Consideration of key performance indicators to ensure effective implementation of the economic development and tourism strategy. Time spent in developing an economic development and tourism strategy for the Town of Ajax can pay significant dividends for the community as it: 1. Outlines the steps to follow. Economic development and tourism does not just happen. It requires the community or region to identify a number of intermediate steps to reach its final goals. 2. Promotes efficient use of scarce resources. A significant amount of money, time, and people will be required for economic development and tourism efforts and these limited resources must not be wasted. The plan will provide rationale for resource allocation. 3. Improves coordination and collaboration. Many programs, activities, groups, and stakeholders will be involved in the development effort and it is important that they not overlap or conflict. The plan will serve as a vehicle for communicating development activities. 4. Builds consensus. The public and the private sector must agree on the major issues involved. This will lead to support in implementing the plan. 5. Increases public awareness. Without public support, economic development and tourism cannot happen. It is important that the public know how development occurs and how it affects a community or region. 6. Strengthens the community or region s competitive position. A community with a strategy will not only be inherently more likely to succeed, it will appear more attractive to potential business or industry than a community without a plan. 7. Encourages forward-thinking. A strategy will encourage community leaders to think about the future and to not overlook opportunities for development as they arise. The result is an economic development and tourism strategy that is both visionary and practical and more effectively positions the community to respond to emerging opportunities as it relates to business investment and growth, both now and in the future. Town of Ajax Economic Development + Tourism Strategy 17 P age

18 2 Economic Base Analysis 2.1 Location in the Greater Toronto Area The Town of Ajax is located at the eastern end of the Greater Toronto Area, within Durham Region. Its eastern location outside of the City of Toronto has resulted in significant growth pressures as evidenced by the historic rate of population growth in the Town and the continuing high levels of residential and nonresidential land development activity. Ajax has realized the benefits of being close to Toronto, Canada s largest urban centre, and has been proactive in managing the resulting growth pressures (see Figure 1). The Town s location in the Greater Toronto Area puts more than 6 million people, representing 40 percent of Canada's total buying power, and 125 million North American consumers, within a day's trucking distance at their doorstep. Ajax will continue to benefit from this proximity, which will be further heightened by planned infrastructure developments that include the development of the Carruthers Creek Employment Area, the Highway 407 extension and highway link between Highways 407 and 401 and the proposed Pickering Airport development. These developments coupled with its location in the GTA make Ajax an attractive location for business investment opportunities and enable the continued attraction of small business entrepreneurs, alternative energy firms, wholesale and distribution companies and tourism businesses. Figure 1 Location in the Greater Toronto Area Source: Google Maps, Town of Ajax Economic Development + Tourism Strategy 18 P age

19 2.2 Population Growth As noted previously, the Town of Ajax has experienced significant growth in recent years. Statistics Canada reported that between 1996 and 2006 the Town of Ajax added 25,737 new residents, an increase of 39.9% over this ten year period, which surpasses that of the Region of Durham and the Province of Ontario. (See Figure 2). The majority of this growth (16,414 residents) occurred between 2001 and It is estimated that there is a further increase of 15,060 new residents from 2006 to This suggests that the Town of Ajax population is at 105,227 for Since 2006, the Town of Ajax growth rate (16.7%) was higher than the Region of Durham (10.1%). Figure 2 - Historic and Current Population Growth, 1996 to 2006 Population (10 Year % Change Net % Change Increase) (5 Years) Net % Change Increase (3 Years) Net Increase Ajax 64,430 73,753 90, , % 25, % 16, % 15,060 Region of Durham 458, , , , % 102, % 54, % 56,447 Ontario 10,753,573 11,410,046 12,160, % 1,406, % 750,236 Source: Statistics Canada, Census of Population: 1996, 2001, 2006, Manifold Data Mining, The high rate of population growth in the Town has had both positive and negative impacts. On the positive side, the increased population has contributed to the development of additional retail space, greater institutional services and new business investment. On the negative side, rapid population growth has placed increased stress on municipal infrastructure and land development opportunities. In June 2006, the Province of Ontario issued a report entitled The Growth Plan for the Greater Golden Horseshoe, which aimed to: Revitalize downtowns to become vibrant and convenient centres Create complete communities that offer more options for living, working, learning, shopping and playing Provide housing options to meet the needs of people of any age Curb sprawl and protect farmland and green spaces Reduce traffic gridlock by improving access to a greater range of transportation options. In this report, population allocations are set out to regional municipalities. Durham Region s Provincial Growth Plan conformity exercise, Growing Durham, builds on the Growth Plan by allocating population to lower tier municipalities. Based on this it is anticipated that Ajax will grow at an annual rate of 1.5% to 2031, which is lower than its 25-year historical growth rate. It is projected that the Town of Ajax population will grow to 137,700 and that the Region of Durham s population will grow to 960,000 by The population growth projections are outlined in Figure 3. 1 Estimates provided by Manifold Data Mining Inc., Town of Ajax Economic Development + Tourism Strategy 19 P age

20 Figure 3 Projected Population Growth, 2006 to Ajax 93, , , , , ,700 Region of Durham 586, , , , , ,000 Source: 2006 population based on Statistics Canada, 2006 Census, including population undercount of approximately 4%. Forecast population includes Undercount and is based on Ajax Employment Lands Report (2009) and Watson & Associates Ltd. (2008). 2.3 Population by Age Structure A review of the age structure for the Town of Ajax from 2001 to 2006 reveals some important considerations for the Town as it moves forward. Figure 4 illustrates the changes in the Town s demographic profile over this period. In 2001, 39.1% of the local population was within the year old age group. The next largest demographic group (32.8%) was the age segment under 20 years. There were similar findings with the Region of Durham and Province of Ontario. In 2006, Ajax largest population segment remains the years old (36.6%) followed by the segment under 20 years old (30.8%). The Region of Durham exhibited a similar trend; however, the Province s second largest population segment is the years old. The higher percentages in Ajax and Durham Region for the population under 20 years and years is attributed to the Town s continuing capacity to attract families because of its affordability as a place to live and its proximity to the City of Toronto for its employment opportunities. The significant portion of population of working age (25-65 years) suggests a higher earning potential, greater workforce capacity and higher skills levels within the community. The high percentage of young people also represents an opportunity for the Town to retain its young workforce by providing advanced educational and employment opportunities where they live. Town of Ajax Economic Development + Tourism Strategy 20 P age

21 Figure 4 - Age Structure, Town of Ajax, 2001 and Ajax 32.8% 39.1% 20.8% 7.3% Region of Durham 30.1% 37.5% 22.6% 9.8% Ontario 26.3% 37.1% 23.7% 12.9% 0% 20% 40% 60% 80% 100% Pop. Under 20 Pop Pop Pop Ajax 30.8% 36.6% 24.7% 7.8% Region of Durham 28.3% 34.8% 26.2% 10.7% Ontario 25.0% 34.9% 26.5% 13.6% 0% 20% 40% 60% 80% 100% Pop. Under 20 Pop Pop Pop Source: Statistics Canada, 2001 and 2006 Census of Population Looking at growth by age cohort between 2001 and 2006 suggests that the fastest growing age groups were the population segments aged and over 65 years, with each five year segment growing by 45.6% and 31.3% respectively (see Figure 5). The Region of Durham and the Province also had strong population growth in these two segments which is generally indicative of an aging population, a trend that is occurring both provincially and nationally. Strong population growth also occurred in the population segment under 20 years (15.0%) and years (14.3%), although at a more modest rate than other age cohorts. The Region of Durham and Province had more modest population growth rates in these two age segments. Despite exhibiting a comparatively young population, the data reveals that the strongest growth is occurring in the older age cohorts. This suggests that Ajax, in time, will experience the same challenges associated with an aging population as other municipalities across Canada. This trend could have Town of Ajax Economic Development + Tourism Strategy 21 P age

22 implications for future economic growth in the Town, in particular the range of services and amenities that will be in demand by the population as it ages. Figure 5 - Population Growth by Age Group, 2001 to % 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 45.6% 31.3% 28.2% 21.1% 22.3% 19.2% 15.0% 14.3% 12.0% 10.7% 6.6% 3.9% 3.0% 1.4% 0.3% Pop. Under 20 Pop Pop Pop Total Population Ontario Durham Region Ajax Source: Statistics Canada, 2001 and 2006 Census of Population 2.4 Ethnic Diversity The ethnic diversity of a community may have wide implications for a town in terms of the cultural and community services that may be required to support this portion of the local population and the approach for attracting and sustaining a skilled workforce. Tourism and immigration opportunities are also created when there is a focus on the cultural aspects of a community. Most importantly, diversity is also an indicator of tolerance or openness, and the degree to which a community is viewed as supportive of a wide range of residents. Statistics Canada gathers data by visible minority status, which is covered by the broad definition of individuals that are non-caucasian in race or non-white in colour, other than Aboriginal. The concept, definition, and classification originally set out in the Employment Equity Act has been met by some contention based on its arbitrary classification of individuals into broad categories, obscuring some differences that may be important within each classification. For example, a Canadian-born individual that self-identifies as Chinese may have a very different set of experiences and cultural values than someone who immigrated to Canada from China. However, visible minority status remains a relatively reliable statistical method of quantifying some level of diversity in an area. Overall, the population by visible minority status in the Town of Ajax grew by 79.1% between 2001 to 2006, based on strong growth in the Southeast Asian, South Asian, Arab and Filipino communities (See Figure 6). The two largest visible minority groups are the Black (11,685 residents) and South Asian (9,735 residents) populations. The growth in these communities was well above that for Durham Region and the Province as a whole. Town of Ajax Economic Development + Tourism Strategy 22 P age

23 Ajax s rate of visible minority growth is significant, visible minorities comprise 34.1% of the local population compared to 16.6% in Durham Region and 22.5% in the Province. With future labour force growth in the province dependent on the immigration of skilled individuals from outside of North America, the Town is well positioned to attract and retain workers from diverse cultural groups. This positioning will help ensure future competitiveness and economic growth for Ajax. In addition, there are implications for the range of services and support needed in the community to enable faster and successful integration into the community. Figure 6 - Population by Visible Minority Status, Source: Statistics Canada, 2001 and 2006 Census of Population Ajax Durham Region Ontario % Change % Change % Change Total 89,835 73, % 557, , % 12,028,895 11,285, % Total visible minority population 32,010 17, % 93,420 62, % 2,745,200 2,153, % Chinese 1,870 1, % 7,560 5, % 576, , % South Asian 9,735 4, % 24,110 14, % 794, , % Black 11,685 7, % 33,305 22, % 473, , % Filipino 2,690 1, % 7,650 4, % 203, , % Latin American % 3,100 2, % 147, , % Southeast Asian % 1, % 110,045 86, % Arab 1, % 3,050 1, % 111,405 88, % West Asian % 2,610 1, % 96,615 67, % Korean % 1,160 1, % 69,540 53, % Japanese % 1,540 1, % 28,080 24, % Visible minority, n.i.e. 1,000 1, % 3,425 4, % 56,845 78, % Multiple visible minority 1, % 4,505 1, % 77,400 42, % Not a visible minority 57,825 55, % 463, , % 9,283,690 9,132, % Figure 7 highlights the top 10 origins for the recent immigrant population in the Town of Ajax in Immigrant populations from the Caribbean and Bermuda are the largest origin group (6,150 people), followed by the United Kingdom (3,720 people) and South America (2,790 people). Town of Ajax Economic Development + Tourism Strategy 23 P age

24 Figure 7 Top 10 Immigrant Populations by Country of Origin, ,000 2,000 3,000 4,000 5,000 6,000 7,000 Caribbean and Bermuda 6,150 United Kingdom 3,720 South America Other Southern Asia (excludes India) Southern Europe Philippines India Africa West Central Asia and the Middle East Eastern Europe 2,790 2,360 1,765 1,715 1,570 1,465 1,330 1,285 Source: Statistics Canada, 2006 Census of Population 2.5 Labour Force Profile Statistics Canada collects labour force data for the Canadian population aged 15 and over, in the year old (young adult) population, and the working age population, or those aged 25 or older. Between 2001 and 2006 the labour force in the Town of Ajax grew by 10,105 people (or 24.3%). (See Figure 8). In comparison the Region of Durham s labour force increased by 34,285 people (12.3%). The labour force in both Ajax and Durham Region has out-paced the provincial labour force growth rate of 8.2% over the same time period. As well, the labour force increased at a slightly faster rate than the population as a whole, suggesting a strong local economy. However, the Town s proximity to the City of Toronto was a major driver to the strong local labour force growth. In both 2001 and 2006, the Town of Ajax enjoyed a higher employment rate than the Region of Durham and Province, that is, there were a higher proportion of people aged 15 and over that were employed. Of note are the consistently higher participation rates in the 25 years and over age group. This would suggest a higher disposable income and a greater demand for local services and amenities. In 2006, the Town had an unemployment rate of 6.4%, which was consistent with the Region of Durham (6.3%) and Ontario (6.4%). Recent weak economic conditions have contributed to higher unemployment rates, with Ajax and the Region being no exception. It is estimated that by 2009, Ajax labour force has grown by approximately 9,500 people and unemployment has increased to 8.9%. Similarly, the Region of Durham s labour force has increased by over 25,000 people and unemployment has increased to 8.6%. Town of Ajax Economic Development + Tourism Strategy 24 P age

25 Figure 8 Town of Ajax Labour Force Profile Comparison, 2001, 2006 and 2009 Ajax Durham Region Ontario Total population 15 years and over by labour force activity 81,782 69,470 54, , , ,395 9,819,420 9,048,040 In the labour force 61,284 51,700 41, , , ,585 6,587,575 6,086,815 Employed 55,853 48,400 39, , , ,065 6,164,245 5,713,900 Unemployed 5,431 3,300 2,235 29,220 19,710 15, , ,915 Not in the labour force 20,498 17,770 13, , , ,810 3,231,840 2,961,220 Participation rate Employment rate Unemployment rate Population 15 to 24 years - Labour force activity 15,176 13,190 9,685 86,977 78,445 66,110 1,624,835 1,479,675 In the labour force 10,003 8,665 6,610 57,037 52,555 45,660 1,059, ,185 Employed 8,151 7,280 5,680 46,413 44,190 39, , ,000 Unemployed 1,852 1, ,624 8,365 6, , ,185 Not in the labour force 5,173 4,520 3,080 29,940 25,890 20, , ,495 Participation rate Employment rate Unemployment rate Population 25 years and over - Labour force activity 66,606 56,280 45, , , ,290 8,194,585 7,568,360 In the labour force 51,281 43,035 34, , , ,925 5,528,220 5,104,635 Employed 47,702 41,120 33, , , ,785 5,258,825 4,858,900 Unemployed 3,579 1,910 1,310 18,596 11,345 9, , ,730 Not in the labour force 15,325 13,245 10, , ,530 87,365 2,666,365 2,463,725 Participation rate Employment rate Unemployment rate Source: Statistics Canada, 2001 and 2006 Census of Population, Manifold Data Mining Inc., Labour Force by Industry A prime consideration for understanding the strength of a local labour force is the diversity of employment by industry. In 2006, the Town of Ajax labour force was comprised of 50,745 persons. In 2006, the highest proportion of the local labour force was in the retail trade industry followed by manufacturing, finance and insurance and health care and social assistance industries 2. The retail trade industry accounted for 13.3% of the total labour force in 2006, an increase from 12.3% of the labour force in results suggest that while the overall percentage of workers employed in retail has dropped, the total number of people employed in retail is continuing to rise. The high percentage of people employed in retail may have implications for overall wage levels in the community, as wages in this industry sector are typically lower. A high concentration of retail employment may also be indicative of a localized service economy rather than a diverse economy. 2 Refer to Appendix II for further details regarding the North American Industrial Classification System. Town of Ajax Economic Development + Tourism Strategy 25 P age

26 In contrast, the manufacturing industry accounted for 11.5% of the labour force, a decrease from the 14.7% in This trend is consistent with the performance of the manufacturing industry in both Ontario and across North America, as our economy shifts from one focused on goods producing to one focused on high value services. The loss of manufacturing jobs in the province has been further accelerated by recent economic events, the high value of the Canadian dollar and the trend towards the off-shoring of manufacturing to lower costs jurisdictions. In 2006, the finance and insurance industry represented 8.7% of the local labour force in the Town, an increase from 7.8% in This finding suggests that Ajax benefits from the city of Toronto s financial services industry as wages in this industry are typically higher than many other industries. This may also represent an opportunity to attract investment in this sector by better profiling the talent and capacity of this portion of the Town s workforce. Health Care and Social Assistance (8.5% of the total labour force) ranks fourth in terms of the proportion of total labour force. This can likely be attributed to the presence of Ajax-Pickering Hospital, a part of the Rouge Valley Health System, which provides acute care emergency, cardiac care, and mental health programs. Both absolute growth in labour force and relative share of total labour force increased from 2001 to 2006 in this industry. By 2009, it was estimated that the labour force comprised 60,246 persons. The highest proportion of the local labour force were in retail trade (7,745 people or 12.9% of the total labour force), manufacturing (6,192 people or 10.3%), health care and social assistance (5,789 people or 9.6%) and finance and insurance (5,611 people or 9.3%). The labour force by industry data is intended to convey the overall strength and diversity of the local workforce. In this context, consideration is given to the total workforce by sector, regardless of whether or not the individual is employed or working within the Town of Ajax. Resident employment (jobs in Ajax) and labour flows the in and out migration of workers to and from other regions is discussed in the next section of the report. Town of Ajax Economic Development + Tourism Strategy 26 P age

27 Figure 9 - Labour Force by Industry, Town of Ajax, 2001, 2006 and % of total labour % of total labour % of total labour Number force Number force Number force Labour Force by NAICS Industry* 60, % 50, % 41, % 11 Agriculture, forestry, fishing and hunting % % % 21 Mining and oil and gas extraction % % % 22 Utilities 1, % 1, % 1, % 23 Construction 3, % 2, % 2, % Manufacturing 6, % 5, % 6, % 41 Wholesale trade 3, % 2, % 2, % Retail trade 7, % 6, % 5, % Transportation and warehousing 2, % 2, % 2, % 51 Information and cultural industries 2, % 2, % 1, % 52 Finance and insurance 5, % 4, % 3, % 53 Real estate and rental and leasing 1, % 1, % % 54 Professional, scientific and technical services 4, % 3, % 3, % 55 Management of companies and enterprises % % % 56 Administrative and support, waste management and remediation services 2, % 2, % 1, % 61 Educational services 3, % 2, % 1, % 62 Health care and social assistance 5, % 4, % 3, % 71 Arts, entertainment and recreation % % % 72 Accommodation and food services 2, % 2, % 2, % 81 Other services (except public administration) 2, % 2, % 1, % 91 Public administration 2, % 2, % 2, % * Total Labour force minus the individuals that fell within the Industry Not Applicable NAICS classification, or unemployed persons 15 years and over who have never worked for pay or in self-employment or who had last worked prior to January 1, 2005, only Source: Statistics Canada, 2001 and 2006 Census of Canadian Population, Manifold Data Mining Inc., The Town of Ajax has experienced very strong labour force growth of 46.6% from 2001 to 2009 and 18.7% from 2006 to (See Figure 10). In terms of absolute numbers, labour force growth has been the largest in the retail trade 3 (2,710 persons or a 53.8% growth rate), health care and social assistance (2,564 persons or a 79.5% growth rate) and finance and insurance (2,396 persons or a 74.5% growth rate) industries from 2001 to Over the previous three years (2006 to 2009), the health care and social assistance industry has led labour force growth (1,474 persons) followed by the finance and insurance industry (1,201 persons) and retail trade industry (1,015 persons). 3 The retail trade sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Town of Ajax Economic Development + Tourism Strategy 27 P age

28 Figure 10 - Labour Force Growth by Industry, Town of Ajax, 2001, 2006 and Number % Increase/ Decrease Number % Increase/ Decrease All industries 19, % 9, % 11 Agriculture, forestry, fishing and hunting % % 21 Mining and oil and gas extraction % % 22 Utilities % % 23 Construction 1, % % Manufacturing % % 41 Wholesale trade 1, % % Retail trade 2, % 1, % Transportation and warehousing % % 51 Information and cultural industries % % 52 Finance and insurance 2, % 1, % 53 Real estate and rental and leasing % % 54 Professional, scientific and technical services % % 55 Management of companies and enterprises % % 56 Administrative and support, waste management and remediation services 1, % % 61 Educational services 1, % % 62 Health care and social assistance 2, % 1, % 71 Arts, entertainment and recreation % % 72 Accommodation and food services % % 81 Other services (except public administration) % % 91 Public administration % % Source: Statistics Canada, 2001 and 2006 Census of Canadian Population, Manifold Data Mining Inc., Labour Force Flow Pattern While the size and growth of the local labour force is an asset to the community or a business looking to locate or expand in Ajax, consideration must also be given to the degree to which a community sees an outflow or inflow of its labour force. The degree of outflow may represent an opportunity to capture or retain employment in the community. It is also an indication of the strength of the community in generating local employment opportunities. In 2006, there was significant outflow of the resident labour force. A net total of 23,910 people in Ajax labour force was employed in jobs outside of Ajax (see Figure 11). Across every industry, with the exception of the agriculture, forestry, fishing and hunting industry, there was a net export of labour. The highest levels of net export of labour in the Town were in finance and insurance (3,360 workers), professional, scientific and technical services (2,135 workers), construction (1,945 workers) and public administration (1,910 workers) industries. In the finance and insurance industry the highest export of labour was in the credit intermediation and related activities sub-industry, where exported labour accounted for 1,955 employees, or 45.3% of the employed finance and insurance labour force. This is largely attributed to the strong finance and insurance sector in the city of Toronto. In the professional, scientific and technical services industry, the sub-industries with the highest export of labour are the computer systems design and related services (635 employees) and legal services (405 Town of Ajax Economic Development + Tourism Strategy 28 P age

29 employees). In the construction industry, specialty trade contractors (1,145 employees) and trades in the residential and non-residential building construction (685 employees) sub-industries accounted for the highest proportions of exported labour. This trend can be attributed to the strong residential housing market in the GTA in While growth in the construction trades is likely to continue, in general, the market for this type of employment is very regionally based. In the public administration industry the highest export of labour was in local, municipal and regional public administration (970 employees) and provincial and territorial public administration (510 employees). These results can be attributed to the presence of both regional and provincial government operations in Whitby and Toronto. There was only one sub-industry that imported labour (greater than 250 employees) from the surrounding areas. This sub-industry was transportation equipment manufacturing (net import of 340 employees). The nature of these findings are characteristic of a regional economy and suggest that it may be difficult for the Town of Ajax to re-capture aspects of its labour force through the targeted attraction of similar business investment or jobs within the local market. Figure 11 - Labour Flow Analysis, Labour Force 15 Years and Over by Industry, Town of Ajax, 2006 * Labour force data by industry from REDDI is concerning employed labour force, where labour force by industry from Statistics Canada census data is concerning both employed workers and unemployed workers who were employed in the industry after January 1, 2005 Source: Statistics Canada: REDDI, 2001 and Labour Force* Jobs in Ajax Net Import (+) or Export (-) All industries 48,270 24,360-23, Agriculture, forestry, fishing and hunting Mining and oil and gas extraction Utilities 1, Construction 2, , Manufacturing 5,605 3,930-1, Wholesale trade 2,775 1,340-1, Retail trade 6,290 4,495-1, Transportation and warehousing 2, , Information and cultural industries 1, , Finance and insurance 4, , Real estate and rental and leasing 1, Professional, scientific and technical services 3,290 1,155-2, Management of companies and enterprises Administrative and support, waste management and remediation services 2, , Educational services 2,760 2, Health care and social assistance 4,175 2,405-1, Arts, entertainment and recreation Accommodation and food services 2,290 1, Other services (except public administration) 2,120 1, Public administration 2, ,910 Town of Ajax Economic Development + Tourism Strategy 29 P age

30 2.5.3 Commuting Flows by Place of Work Having considered the range of employment that is exported or leaving Ajax daily, a further consideration is where these employees are travelling for employment. The table that follows illustrates the place of work data by census sub-division, for the employed labour force 15 years and older by usual place of work. The data suggests that nearly half (47.3%) of the total employed labour force that resides in the Town of Ajax works in the City of Toronto (see Figure 12). Only 20.4% of the resident labour force is employed in jobs in Ajax. Two other communities that have attracted Ajax labour force include Pickering (11.5%) and Markham (6.3%). As discussed earlier, commuting data can provide insight into the strength of the local economy and offer an indication as to whether there is an opportunity to retain some of the exported labour force. For example, the high levels of exported labour in finance and insurance, combined with the significant commuting flow towards the City of Toronto suggests that much of this workforce is employed in Toronto s financial services industry. Though the labour force in this industry is specialized and well educated, this may not necessarily translate to a strength that can be built upon to attract investment since many of the financial institutions benefit from their proximity to each other. Figure 12 - Commuting Flows, Ajax as a Place of Residence, Census Subdivisions, 2006 Place of Residence/Place of Work Total % of Commuting Workforce Total* 41, % Ajax / Toronto 19, % Toronto Ajax / Ajax 8, % Ajax Ajax / Pickering 4, % Pickering Ajax / Markham 2, % Markham Ajax / Whitby 1, % Whitby Ajax / Oshaw a 1, % Oshawa Ajax / Mississauga % Mississauga Ajax / Vaughan % Vaughan Ajax / Richmond Hill % Richmond Hill Ajax / Clarington % Clarington Ajax / Brampton % Brampton Toronto Ajax Pickering Markham Whitby Oshawa Mississauga Vaughan Richmond Hill Clarington Ajax / Whitchurch-Stouffville % Whitchurch-Stouffville Brampton Ajax / New market % Newmarket Whitchurch-Stouffville Newmarket Aurora Peterborough Scugog Uxbridge Hamilton Oakville Port Hope Ajax / London % Mississaugas of Scugog Island Ajax / Kingston % Ajax / Aurora % Aurora Ajax / Peterborough % Peterborough Ajax / Scugog % Scugog Ajax / Uxbridge % Uxbridge Ajax / Hamilton % Hamilton Ajax / Oakville % Oakville Ajax / Port Hope % Port Hope Ajax / Mississaugas of Scugog Island % Mississaugas of Scugog Island * Statistics Canada suppresses commuting data when the commuting flow is below 20 individuals, so Census subdivisions that receive fewer than 20 residents from Ajax are not included. Data does not include work at home or no fixed place of work. Source: Statistics Canada, 2006 Census of Population 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 11.5% 6.3% 3.8% 3.8% 2.1% 1.5% 0.8% 0.7% 0.7% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% With the City of Toronto s dominance, it is reasonable that much of the workforce in surrounding communities such as Pickering and Whitby are also working outside of their place of residence. While Ajax continues to export labour from the town to Toronto, Ajax benefits from a regional labour pool. This is significant as it demonstrates to a potential investor or business that the Town can draw regionally and 20.4% 47.3% Town of Ajax Economic Development + Tourism Strategy 30 P age

31 should be a factor in marketing and promotion. In Ajax, 8,385 jobs (38.9% of total jobs) are filled by the local labour force (see Figure 13). An additional 3,125 jobs (14.5%) are filled by Whitby residents, 2,995 jobs (13.9%) are filled by Oshawa residents, jobs (9.7%) are filled by Pickering residents and 1,735 jobs (8.0%) are filled by Toronto residents. While it is beyond the scope of this work to detail the nature of these jobs, consideration of this should be included as part of any business retention and expansion efforts or corporate calling program. Figure 13 - Commuting Flows, Ajax as a Place of Work, Census Subdivisions, 2006 Place of Residence/Place of Work Total % of Commuting Workforce Total* 21, % Ajax / Ajax 8, % Ajax Whitby / Ajax 3, % Whitby Oshaw a / Ajax 2, % Oshawa Pickering / Ajax 2, % Pickering Toronto / Ajax 1, % Toronto Clarington / Ajax 1, % Clarington Markham / Ajax % Markham Scugog / Ajax % Scugog Kaw artha Lakes / Ajax % Kawartha Lakes Richmond Hill / Ajax % Richmond Hill Uxbridge / Ajax % Uxbridge Mississauga / Ajax % Mississauga Port Hope / Ajax % Port Hope Brock / Ajax % Brock Georgina / Ajax % Georgina New market / Ajax % Newmarket Hamilton / Ajax % Hamilton Peterborough / Ajax % Peterborough Ajax Whitby Oshawa Pickering Toronto Clarington Markham Scugog Kawartha Lakes Richmond Hill Uxbridge Mississauga Port Hope Brock Georgina Newmarket Hamilton Peterborough Alnw ick/haldimand / Ajax % Alnwich/Haldimand Alnwich/Haldimand Brampton Vaughan Trent Hills Hamilton / Ajax % Hamilton Hamilton Havelock-Belmont-Methuen / Ajax 25 Havelock-Belmont-Methuen 0.1% Burlington / Ajax 25 Burlington 0.1% Burlington Galway-Cavendish and Harvey Cavan-Millbrook-North Monaghan Cobourg Cobourg / Ajax % Cobourg Brampton / Ajax % Brampton Vaughan / Ajax % Vaughan Trent Hills / Ajax % Trent Hills Galway-Cavendish and Harvey / Ajax % Galway-Cavendish and Harvey Cavan-Millbrook-North Monaghan / Ajax % Cavan-Millbrook-North Monaghan 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 14.5% 13.9% 9.7% 8.0% 6.6% 1.4% 1.2% 1.0% 0.8% 0.7% 0.5% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 38.9% * Statistics Canada suppresses commuting data when the commuting flow is below 20 individuals, so Census subdivisions that receive fewer than 20 residents from Ajax are not included. Source: Statistics Canada, 2006 Census of Population Labour Force by Occupation In order to get a more complete picture of the labour force capabilities or capacity, it is necessary to examine the labour force by occupation, that is, by the core activities associated with an individual s employment. The table that follows illustrates the concentration of the labour force by occupation 4 for 2001, 2006 and 2009 (estimated) for the Town of Ajax. Refer to Appendix III for further details regarding the National Occupation Classifications. 4 Statistics Canada: employment by National Occupation Classification from 2001 and 2006 Census of Population Town of Ajax Economic Development + Tourism Strategy 31 P age

32 As Figure 14 indicates, occupations with the highest labour force concentrations in 2006 and 2009 included: Business, finance, and administration (12,060 people in 2006 and an estimated 14,515 people in 2009) Sales and service (11,740 people in 2006 and 14,019 people in 2009) Trades, transport and equipment operators and related occupations (6,975 people in 2006 and 8,390 people in 2009), and Management (5,675 people in 2006 and 6,613 people in 2009). These four labour force occupation concentrations were also the highest for the Region of Durham and Province; however, the sales and service occupations concentration was the single largest group. Figure 14 - Labour Force by Occupation, 2001, 2006 and 2009 Ajax Region of Durham Ontario Occupations (NOC-S) All occupations* 60,264 50,745 41, , , ,220 6,473,735 5,992,765 Management occupations 6,613 5,675 5,325 35,831 33,530 32, , ,390 Business, finance and administration occupations 14,516 12,060 9,560 68,538 62,335 53,665 1,204,490 1,097,835 Natural and applied sciences and related occupations 4,395 3,800 2,890 20,955 19,625 17, , ,510 Health occupations 2,776 2,310 1,655 16,124 15,120 12, , ,310 Occupations in social science, education, government service and religion 4,576 3,885 2,575 25,901 24,180 19, , ,825 Occupations in art, culture, recreation and sport 1,244 1, ,685 8,215 5, , ,840 Sales and service occupations 14,019 11,740 9,395 79,246 72,050 63,630 1,522,820 1,371,245 Trades, transport and equipment operators and related occupations 8,390 6,975 5,675 52,011 47,845 42, , ,125 Occupations unique to primary industry ,525 5,830 5, , ,360 Occupations unique to processing, manufacturing and utilities 3,269 2,685 2,690 21,892 20,170 22, , ,320 * Labour Force 15 years and older minus the individuals within the Occupation Not Applicable Category, or Unemployed persons 15 years and older who have never worked for pay or in self-employment or who had last worked prior to January 1, 2005, only Source: Statistics Canada, 2001 and 2001 Census of Population, Manifold Data Mining Inc., When looking at growth in absolute number of occupations over the period of 2001 to 2009, the largest share of occupations for Ajax remains business, finance and administration (4,956 people) and sales and service (4,624 people), (See Figure 15). The highest percentage growth belongs to occupations in social science, education, government service and religion (77.7%) and health occupations (67.7%). Over the Town of Ajax Economic Development + Tourism Strategy 32 P age

33 previous three years, growth in absolute terms has remained concentrated in business, finance and administration (2,456 people) and sales and service (2,279 people). Additional occupations that exhibited strong growth include: Natural and applied sciences (52.1%) and Trades, Transport, and Equipment Operators (47.8%). These results are consistent with the pattern of employment by industry discussed earlier, where Ajax demonstrated a growing labour force employed in retail trade, finance and insurance, and health care and social assistance industries. The Town is well on its way to attracting and supporting a labour pool more consistent with the shifting, services based economy. Figure 15 - Labour Force Growth by Occupation, Town of Ajax, 2001, 2006 and % Increase/ % Increase/ Occupations (NOC-S) Number Decrease Number Decrease All occupations* 19, % 9, % Management occupations 1, % % Business, finance and administration occupations 4, % 2, % Natural and applied sciences and related occupations 1, % % Health occupations 1, % % Occupations in social science, education, government service and religion 2, % % Occupations in art, culture, recreation and sport % % Sales and service occupations 4, % 2, % Trades, transport and equipment operators and related occupations 2, % 1, % Occupations unique to primary industry % 6 1.3% Occupations unique to processing, manufacturing and utilities % % * Labour Force 15 years and older minus the individuals within the Occupation Not Applicable Category, or Unemployed persons 15 years and older who have never worked for pay or in self-employment or who had last worked prior to January 1, 2005, only. Source: Statistics Canada, 2001 and 2001 Census of Population, Manifold Data Mining Inc., Town of Ajax Economic Development + Tourism Strategy 33 P age

34 2.6 Ajax s Creative Economy The rise of the knowledge-based or creative economy has radically altered the ways that communities and regions establish and maintain their competitive edge and provides a second lens with which to examine a community s labour force. With knowledge and innovation replacing natural resources and physical labour as the major sources of personal wealth creation and economic growth, a community s ability to attract and retain the highly educated workers needed for sustained growth has become central to long term economic success. Conventional wisdom would argue that if the jobs are available, the workers will follow. However, as the demand for skilled workers outstrips supply on a global level, the people and talent that are in demand can essentially choose where to live and where to work. Until recently, this has meant that larger urban areas have been the location of choice, in large part because of the range of employment opportunities, access to a broad range of cultural and recreational amenities, and access to post secondary education available in larger centres. However, there is increasing evidence of the success that second tier communities can have in attracting this type of worker based on the desire for a higher quality of life and quality of place experience. Communities and regions that embrace cultural and economic diversity, undertake efforts to integrate economic, social and environmental considerations into mainstream policy, facilitate a connected and engaged business and investment community, and provide access to a high standard of living and quality of life experience will succeed in the race to attract talent and investment over the long term. The impact of this effort has been detailed in a report to the Region of Durham on its creative industries prepared by Millier Dickinson Blais in The Creative Economy Defined Defining the economy by the work people do is different than the conventional way of defining it by the labour force associated with a select industry. Somebody may be working in a traditional industry - such as the auto industry - but is not necessarily working on the assembly line in a routine-physical occupation. A car designer for example is a creative occupation within a traditional industry. In the book The Rise of the Creative Class (2002), Professor Richard Florida details the significant societal and economic impact that the creative class of worker is having on both local and international economies and the shifts being made to attract and retain this type of labour force, as more and more economic developers realize the importance of this aspect of a workforce Creative Occupations Defined In defining the creative economy we have relied on the work of Dr. Richard Florida in the book the Rise of the Creative Class. As the various classes of workers that comprise an economy are defined on the basis of occupation, consideration must be given to the availability of occupation data from Statistics Canada; in particular the National Occupation Classification codes (NOCs). These classification codes have been matched against Dr. Florida s occupational categories for the creative class of worker. Based on this approach creative economy occupations in Canada are said to comprise: Town of Ajax Economic Development + Tourism Strategy 34 P age

35 Figure 16 - Creative Economy Occupations Creative Economy Occupations Professional Occupations in Natural and Applied Sciences Technical Occupations related to natural and Applied Sciences Teachers and Professors Professional Occupations in Art and Culture Technical Occupations in Art, Culture, Recreation and Sport Finance and Insurance Administration Occupations Professional Occupations in Health Nurse Supervisors and Registered Nurses Technical and Related Occupations in Health Judges, lawyers, psychologists, social workers, ministers of religion and policy and program Source: Richard Florida, the Rise of the Creative Class, Millier Dickinson Blais, 2009 In the 2009 report, Ontario in the Creative Age, Florida pushes this concept further by positioning creative occupations in the context of three additional broad kinds of work. Creative occupations the growing number of workers who are paid to think. These include scientists and technologists, artists and entertainers, and managers and analysts. Routine-service occupations - where the work involves little autonomy and is focused on the delivery of services, for example, food-service workers, janitors and clerks; Routine-physical occupations - consisting of people who use physical skills and carry out repetitive tasks (for example, tradespersons, mechanics, crane operators and assembly line workers); Routine-resource occupations - including mining and forestry. What is apparent from the creative occupational categories is their ability to cut across industry sector lines in a way that can impact both traditional and emerging industries and the degree to which these occupations translate to a well paid and highly skilled labour force. This is particularly true if one considers the skills needed for creative occupations are more heavily weighted towards analytical 5 and social intelligence 6 skills, both of which play a significant role in a knowledge driven economy Creative Occupations The number of people engaged in creative occupations was examined for the Town. People engaged in creative occupations currently comprise 34.5% of the Town s labour force (20,770 workers) an increase of 46.3% since (See Figure 17). In addition, the majority of these workers are in management occupations followed by natural and applied sciences, and business, finance and administration. In terms of percentage growth, occupations in social science, education, government service and religion saw an 86.2% increase between 2001 and 2009 followed by business, finance and administration (63.1%) and health (52.9%). Given the generally higher wages, specialized skills, and innovative capacities of these individuals, the growth of this class of worker has substantial implications for the Town s economic development and 5 Examples of occupations that require the highest level of analytical thinking skills include surgeons, biomedical engineers, dentists, accountants, plumber, art directors etc. 6 Examples of occupations that require the highest level of social intelligence skills include psychiatrists, chief executives, marketing managers, lawyers, sports coach, film directors etc. Town of Ajax Economic Development + Tourism Strategy 35 P age

36 tourism strategy in terms of the way it should be directing marketing and promotions efforts, targeting industry opportunities, and promoting the quality of place experiences. The Town s assets could attract and retain these workers include the waterfront, recreational amenities, health care centre and proximity to post-secondary institutions. Despite this strong performance and the concentration of workers in creative occupations, the Town of Ajax is similar on average to both the Province (34.7% in 2006) and the Region of Durham (33.1% in 2006). Figure 17 - Labour Force by Creative Occupations, Town of Ajax, 2001 to 2009 Occupations (NOC-S) Total Creative Occupations 20,770 17,760 14,195 A Management occupations 6,613 5,675 5,325 A0 Senior management occupations A1 Specialist managers 2,349 2,020 1,775 A2 Managers in retail trade, food and accommodation services 1,569 1,325 1,310 A3 Other managers, n.e.c. 2,048 1,765 1,675 B Business, finance and administration occupations 3,466 2,860 2,125 B0 Professional occupations in business and finance 2,457 2,050 1,470 B1 Finance and insurance administration occupations 1, C Natural and applied sciences and related occupations 4,395 3,795 2,890 C0 Professional occupations in natural and applied sciences 2,513 2,255 1,690 C1 Technical occupations related to natural and applied sciences 1,882 1,540 1,200 D Health occupations 1,980 1,690 1,295 D0 Professional occupations in health D1 Nurse supervisors and registered nurses D2 Technical and related occupations in health E Occupations in social science, education, government service and religion 3,072 2,585 1,650 E0 Judges, lawyers, psychologists, social workers, ministers of religion, and policy and program officers 1, E1 Teachers and professors 1,976 1,650 1,040 F Occupations in art, culture, recreation and sport 1,244 1, F0 Professional occupations in art and culture F1 Technical occupations in art, culture, recreation and sport Source: Manifold Data Mining, 2009, Statistics Canada, 2001 and 2006 Census of Population 2.7 Educational Attainment The level of educational attainment in a municipality can be used as a general indicator of the capacity for innovation of the local population. Generally put, educational attainment is often seen as a contributing factor to the quality of the human capital of a municipality, or the accumulation of skills and talents which manifests itself in the educated and skilled workforce of the region (Mathur, 1999). In 2006, nearly two-thirds (64.1%) of the population 25 to 64 years of age had attained some form of postsecondary education, higher than the Region of Durham (60.1%) and Province of Ontario (61.4%),(see Figure 18). This population base in Ajax was equally weighted towards college education (27.0%) and university education (27.9%). In comparison to Ajax, the Region of Durham had a lower population base (23.0%) with a university education; however, the Province s population base (30.7%) was higher. The educational assets are the University of Ontario Institute of Technology (UOIT), Trent University satellite campus and Durham College located in Oshawa. Ajax also benefits from its proximity to the Town of Ajax Economic Development + Tourism Strategy 36 P age

37 University of Toronto, Ryerson University as well as the significant network of colleges and professional institutes that are located in Toronto. The results of the occupational profile also suggest that there are a considerable number of people working in skilled trades, sales and service and health care, which would not necessarily require a university education. Greater consideration should be given to ways to create local opportunities for university and college graduates in order to improve the Town s labour force credentials and employment prospects. This is particularly important given Ontario and the GTA are shifting towards a more technology based, higher value-added economy. Figure 18 - Educational Profile, Town of Ajax, Region of Durham and Province of Ontario, 2006 % of population 25 to 64 years Ontario 13.6% 25.0% 8.8% 22.0% 30.7% Region of Durham 11.7% 28.1% 9.8% 27.3% 23.0% Ajax 9.5% 26.4% 9.1% 27.0% 27.9% 0% 20% 40% 60% 80% 100% No certificate, diploma or degree High school certificate or equivalent Apprenticeship or trades certificate or diploma College, CEGEP or other non-university certificate or diploma University certificate, diploma or degree Source: Statistics Canada, 2006 Census of Population As Figure 19 indicates, of the 31,715 residents between the ages of 25 and 64 that obtained post secondary education, the highest concentration by major field of study were in: Business, management, and public administration (8,110 people); Architecture, engineering, and related technologies (6,760 people); Health, parks, recreation and fitness fields (3,685 people); and Social and behavioural sciences and law (3,625 people). Overall, these four major fields account for over two-thirds (69.9%) of the individuals with post-secondary credentials in the Town of Ajax. The high concentration of individuals in business and management may represent an opportunity to foster shared experiences between more senior business persons and small business and entrepreneurs in the community. Town of Ajax Economic Development + Tourism Strategy 37 P age

38 Figure 19 - Post-secondary Education Profile, by Major Field of Study, Town of Ajax, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Business, management and public administration 8,110 Architecture, engineering, and related technologies 6,760 Health, parks, recreation and fitness Social and behavioural sciences and law 3,685 3,625 Mathematics, computer and information sciences Education Personal, protective and transportation services Humanities Visual and performing arts, and communications Physical and life sciences and technologies 2,225 1,695 1,545 1,530 1, Agriculture, natural resources and conservation 355 Source: Statistics Canada, 2006 Census of Population 2.8 Income Levels Average income rates provide important information about the wealth generated or retained by the local population. High income rates suggest a high level of disposable income, which in turn could mean that there is a strong local market for local business, especially in the retail and personal service sectors. Figure 20 identifies the 2000 and 2005 personal income rates for the Town of Ajax in comparison to the Region of Durham and Province of Ontario. These results suggest that there has been a slight decrease in the number of individuals with an income below $40,000 and an increase in the number of individuals making $60,000 or over. In comparison to the Region of Durham and Province, the Town of Ajax demonstrated a higher proportion of individuals in income brackets over $50,000 in 2005 and 2000 and higher median and average income. Figure 20 - Proportion of Total Population with Personal Income, 2000 and 2005 Personal Income, Population years and over Ajax Durham Ontario Ajax Durham Ontario Under $10, % 19.4% 20.5% 20.5% 21.1% 22.5% $10,000 to $19, % 15.8% 19.0% 14.0% 16.2% 19.9% $20,000 to $29, % 12.0% 13.9% 12.9% 13.4% 14.9% $30,000 to $39, % 12.4% 12.6% 15.1% 13.9% 13.5% $40,000 to $49, % 10.6% 9.7% 11.7% 10.6% 9.5% $50,000 to $59, % 8.1% 7.0% 8.8% 7.8% 6.5% $60,000 and over 21.8% 21.7% 17.3% 16.9% 16.9% 13.1% Median income $33,026 $32,005 $27,258 $30,870 $29,246 $24,816 Average income $40,414 $40,202 $38,099 $35,900 $34,961 $32,865 Source: Statistics Canada, 2001 and 2006 Census of Population Town of Ajax Economic Development + Tourism Strategy 38 P age

39 Ajax exhibits similar characteristics in an assessment of household income. In both 2000 and 2005, Ajax had higher median and average household income than the Region of Durham and Province of Ontario, (see Figure 22). The proportion of high-income earning households ($90,000 to $99,999 and $100,000 and over) was much higher than the Region and Province. On the lower end of household income brackets, Ajax had much lower proportions of households earning less than $40,000 a year. Overall, the median household income climbed from $74,112 in 2000 to $81,940 in 2005 (a 10.6% increase), while the average household income climbed from $81,145 in 2000 to $92,000 in 2005 (a 13.4% increase). Although the median and average household income remains higher than the Region and Province, the pace of growth is lower. The growth of the median household income in the Region and Province was 12.8% and 12.7% respectively. The growth of the average household income in the Region and Province was 15.1% and 16.7% respectively. Assuming a modest 1.5% annual increase in household income, the average household income in Ajax could climb from $92,000 in 2005 to $97,645 in What is telling about this information is the growing level of wealth in the community, which in turn could indicate higher levels of disposable income. While it does not necessarily equate with higher value jobs in Ajax it could represent an opportunity for higher end retailing and a higher quality shopping experience. Figure 21 - Proportion of Households by Income, 2000 and Household Income Ajax Region of Durham Ontario Ajax Region of Durham Ontario Under $10, % 2.7% 4.4% 2.2% 3.1% 5.2% $10,000 to $19, % 5.8% 8.8% 4.6% 7.0% 10.7% $20,000 to $29, % 6.2% 9.0% 5.8% 7.3% 10.3% $30,000 to $39, % 7.6% 9.8% 7.0% 8.2% 10.4% $40,000 to $49, % 7.9% 9.2% 7.7% 8.5% 9.9% $50,000 to $59, % 7.9% 8.5% 9.4% 9.0% 9.0% $60,000 to $69, % 7.7% 7.8% 9.2% 9.4% 8.5% $70,000 to $79, % 7.9% 7.1% 9.5% 8.5% 7.2% $80,000 to $89, % 7.2% 6.2% 9.2% 7.9% 6.0% $90,000 to $99, % 6.8% 5.2% 8.2% 6.9% 4.9% $100,000 and over 36.4% 32.4% 24.0% 27.2% 24.1% 18.1% Median household income $81,940 $75,397 $60,455 $74,112 $66,832 $53,626 Average household income $92,000 $86,391 $77,967 $81,145 $75,058 $66,836 Source: Statistics Canada, 2001 and 2006 Census of Population 2.9 Summary of Findings The Town of Ajax has experienced strong population growth in recent years which has translated into strong labour force growth across a broad range of industries. The Town is clearly a significant exporter of employment to other jurisdictions, particularly Toronto, but opportunities for growth and business investment have emerged. Based on the foregoing high level review of the Ajax economy including its recent labour force performance, the following findings are considered relevant to the development of a Town of Ajax Economic Development and Tourism Strategy. Town of Ajax Economic Development + Tourism Strategy 39 P age

40 The current population of the Town of Ajax has increased 39.9% from 1996 to Since 2006, Ajax is estimated to have grown by an additional 16.7% or 15,060 people. Much of this growth is fuelled by the Town s available municipal infrastructure capacity and overall housing affordability in the Greater Toronto Area. The strong rate of growth illustrates Ajax continuing appeal to families as well as the broader population. The high rate of growth is expected to continue with the population of the Town of Ajax reaching 137,700 residents by 2031, according to the Growing Durham Growth Plan conformity exercise. The Town of Ajax is a comparatively young community with 30.8% of the population under the age of 20. However, the strongest rate of growth is occurring in the population years of age suggesting the presence of older families. This is reinforced by the concentration of population under 20 years of age. This future workforce represents a significant opportunity for the Town to maintain a young workforce where other communities across Ontario are dealing with an aging workforce - provided advanced education and employment opportunities are available. The population by visible minority status in the Town of Ajax grew by 79.1% between 2001 and 2006 based on strong growth from the Southeast Asian, Arab, Filipino and Black residents. Visible minorities comprise 34.1% of the local population compared to 22.5% in the Province. With future labour force growth in the province dependent on the attraction and immigration of skilled workers from outside of North America, the Town of Ajax is well positioned to attract and retain workers from diverse cultural groups. This will help to ensure strong future competitiveness and economic growth and should factor in any of the Town s marketing and promotional efforts. The Town of Ajax has a higher proportion of households earning in excess of $90,000 per year compared to the Region of Durham and the Province. With average household incomes estimated to increase, higher disposable incomes may translate into a demand for a greater range of retail, dining, entertainment and recreation experiences in the town and personal service offerings. Consistent with Ajax strong population growth, the labour force growth is estimated to have increased by 46.6% from 2001 to The highest proportion of its workforce is employed in retail trade, manufacturing and health care and social assistance industries. While the labour force is fairly diversified, employment opportunities in Ajax were currently limited to 24,360 jobs across the local economy. The three largest employment sectors were retail trade (4,495 jobs), manufacturing (3,930 jobs) and health care & social assistance (2,405 jobs) industries. Approximately half (47.3%) of Ajax labour force works in Toronto. Only 20.4% of Ajax labour force fills jobs in the town. This finding demonstrates the continuing importance and interdependence of the broader regional economy as it relates to economic growth as well as employment and investment opportunities. At the present time the highest levels of net export of labour are occurring in finance and insurance (3,360 jobs), professional, scientific and technical services (2,135 jobs), construction (1,945 jobs) and public administration (1,910 jobs) industries. In total the Town exports 23,910 employees. The nature of this employment suggests that it may be difficult to capture this Town of Ajax Economic Development + Tourism Strategy 40 P age

41 workforce since many of these jobs can only be completed in large financial and corporate centres. Occupational information for the Town of Ajax suggests a concentration of skills in business, finance and administration occupations and sales and service occupations. Occupations that show the highest rate of growth include social science, education, government service and religion and health. These results are consistent with an overall trend in the province towards an economy dominated by service producing industries and occupations rather than goods producing industries and occupations. People engaged in creative occupations currently comprise 34.5% of the Town s workforce (20,770 workers) an increase of 46.3% since Despite this strong performance and the concentration of workers in creative occupations, the Town of Ajax is similar on average to attracting and retaining these workers compared to the Province (34.7% in 2006). Educational attainment levels are higher in Ajax for both college and university education. The Town benefits from the proximity of post-secondary institutions in Oshawa and Toronto. Most common fields of study include: o business, management and public administration; o architectural, engineering and related technologies; o health parks, recreation and fitness; and o social and behavioural sciences. The knowledge and skill sets in Ajax represent opportunities to foster business and entrepreneurial growth. Town of Ajax Economic Development + Tourism Strategy 41 P age

42 3 Industry Sector Analysis 3.1 Location Quotients Analysis In order to determine the level and degree of business and industrial specialization, thus the economic diversity that may be developing in the Town of Ajax, location quotients (LQs) have been calculated to identify and measure the concentration of industry/business activity by major sector and/or sub-sectors. Location quotients are a commonly used tool in local/regional economic analysis. They assess the concentration of economic activities within a smaller area relative to the overarching region in which it resides. For the purposes of this study we have calculated location quotients that compare the Town of Ajax s industry sector employment concentration relative to the Province of Ontario. Location quotients have also been calculated for the Region of Durham. A location quotient greater than 1.0 for a given sector indicates a local concentration of economic activity as compared to the overarching region (either Ontario or any other region) and may be an indication of competitive advantage with respect to the attraction of that industry sector. Location quotients equal to 1.0 for a given sector suggest that the study area has the same concentration of economic activity as the overarching region. Finally, a location quotient of less than 1.0 suggests that the community does not have a strong competitive advantage in that sector. In theory, an industrial or business concentration that is greater than the overarching regional average may also represent the export base of the participating municipality (both in terms of products or services). Businesses that make up this export base may have chosen to locate in the community due to certain local or regional competitive advantages. These competitive advantages can be used to attract additional investment, in the same or complementary industries. The industry concentration in the Town of Ajax relative to Ontario reveals the highest concentration of labour in the following sectors in 2006: Utilities (LQ 2.71) Finance and Insurance (LQ 1.79) Information and Cultural Industries (LQ 1.50) Wholesale Trade (LQ 1.20) Retail Trade (LQ 1.18) Three major industries exhibit LQs within the high range, with values in excess of 1.25, (see Figure 22). While the high LQ in the Town s Utilities sector can be directly attributed to the presence of the Region s power generating stations in Pickering and Darlington, this performance is also reflective of the emergence of an energy cluster in the Region that is comprised of traditional suppliers as well as alternative sources of energy generation. Tracking labour force activity in this sector however, only tells part of the story, as skilled and technical trades that support the industry have also emerged along with specialized suppliers that provide a variety of technical commodities. For the finance and insurance industry, there is significant labour force concentration in credit intermediation and related activities (LQ 1.97) and insurance carriers and related activities (LQ 1.80). The specialized nature of this work and concentration of these types of businesses in Downtown Toronto suggests that Ajax is an exporter of these services. Town of Ajax Economic Development + Tourism Strategy 42 P age

43 For information and cultural industries, there is labour force concentration in telecommunications (LQ 2.40), which would include wired and wireless telecommunications carriers. The results for wholesale trade suggest a local competitive advantage; as there is a high concentration of labour in machinery, equipment and supplies wholesaler-distributors (LQ 1.69). From a tourism perspective, locations quotients were average for retail trade (LQ 1.18), the accommodation and food services (LQ 0.76) and arts, entertainment and recreation (LQ 0.67) industries. In the arts, entertainment and recreation industry, there was only one sub-industry with more than 200 employees Amusement, gambling and recreation. The results suggest a competitive disadvantage despite the Slots and Ajax Downs tourism asset. The results for the manufacturing industry suggest an average to weak competitive advantage. However, when consideration is given to the sub-industries with over 250 people, paper manufacturing (LQ 1.57), printing and related support activities (LQ 1.86), chemical manufacturing (LQ 1.30) and computer and electronic product manufacturing (LQ 1.30) demonstrate strength within Ajax manufacturing base. However, given the general trend toward a declining workforce and more niche based manufacturing activity these subsectors may have shifted since the 2006 census reporting. Overall the Location Quotient analysis suggests that the Town of Ajax has a localized economy with the majority of sectors occupying an average concentration relative to the Province. The results of the labour flow analysis also suggest that much of the economic activity in the Town is being driven by business and industry demand in the Region of Durham and City of Toronto. Town of Ajax Economic Development + Tourism Strategy 43 P age

44 Figure 22 - Location Quotients for 2-Digit NAICS Industries, Town of Ajax, Industry (NAICS) 2006 Classification 2001 Classification 22 Utilities 2.71 High 3.31 High 52 Finance and insurance 1.79 High 1.61 High 51 Information and cultural industries 1.50 High 1.38 High 41 Wholesale trade 1.20 Average 1.20 Average Retail trade 1.18 Average 1.07 Average 55 Management of companies and enterprises 1.10 Average 1.42 High 56 Administrative and support, waste management and remediation services 1.07 Average 0.95 Average 53 Real estate and rental and leasing 1.05 Average 1.09 Average Transportation and warehousing 0.99 Average 1.05 Average 23 Construction 0.95 Average 0.99 Average 54 Professional, scientific and technical services 0.93 Average 1.12 Average 81 Other services (except public administration) 0.93 Average 0.88 Average 91 Public administration 0.91 Average 1.10 Average 62 Health care and social assistance 0.90 Average 0.87 Average Manufacturing 0.84 Average 0.89 Average 61 Educational services 0.84 Average 0.75 Average 72 Accommodation and food services 0.76 Average 0.78 Average 71 Arts, entertainment and recreation 0.67 Low 0.57 Low 21 Mining and oil and gas extraction 0.45 Low 0.26 Low 11 Agriculture, forestry, fishing and hunting 0.13 Low 0.17 Low Source: Statistics Canada, 2001 and 2006 Census of Population using the Ontario Ministry of Agriculture, Food and Rural Affairs REDDI Labour Flow Analysis Tool. Figure 23 provides further regional economic analysis for the performance of the Region of Durham. These results suggest a consistent performance of the four sectors at the regional level, although the Region has a higher ratio of labour in construction services than Ajax. The four consistent sectors were: Utilities (LQ 3.14) Finance and Insurance (LQ 1.22) Information and Cultural Industries (LQ 1.14) Wholesale Trade (LQ 1.20). Clearly, Durham Region s utilities industry labour force is a competitive advantage and needs to be promoted in any further economic development efforts. The next section will build on this analysis with consideration of the pattern of business development that has occurred in the Town and Region. Town of Ajax Economic Development + Tourism Strategy 44 P age

45 Figure 23 - Location Quotients for 2-Digit NAICS Industries, Region of Durham (Census Division), Industry (NAICS) 2006 Classification 2001 Classification 22 Utilities 3.14 High 3.31 High 52 Finance and insurance 1.22 Average 1.21 Average 51 Information and cultural industries 1.14 Average 1.09 Average 23 Construction 1.13 Average 1.09 Average 41 Wholesale trade 1.10 Average 1.09 Average Retail trade 1.06 Average 1.07 Average 53 Real estate and rental and leasing 1.05 Average 1.02 Average 56 Administrative and support, waste management and remediation services 1.04 Average 1.01 Average 61 Educational services 0.99 Average 0.98 Average 91 Public administration 0.97 Average 0.97 Average 62 Health care and social assistance 0.96 Average 0.96 Average Transportation and warehousing 0.95 Average 0.94 Average Manufacturing 0.94 Average 0.99 Average 55 Management of companies and enterprises 0.93 Average 1.08 Average 81 Other services (except public administration) 0.93 Average 0.90 Average 71 Arts, entertainment and recreation 0.90 Average 0.76 Average 54 Professional, scientific and technical services 0.88 Average 0.88 Average 72 Accommodation and food services 0.81 Average 0.84 Average 11 Agriculture, forestry, fishing and hunting 0.55 Low 0.61 Low 21 Mining and oil and gas extraction 0.37 Low 0.36 Low Source: Statistics Canada, 2001 and 2006 Census of Population using the Ontario Ministry of Agriculture, Food and Rural Affairs REDDI Labour Flow Analysis Tool. 3.2 Business Patterns Assessment Statistics Canada s Canadian Business Patterns Data provides a record of business establishments by industry and size. This data is collected from the Canada Revenue Agency (CRA). The business data collected for the Town of Ajax and Region of Durham includes all local business which meets at least one of the three following criteria: Have an employee workforce for which they submit payroll remittances to CRA; or Have a minimum of $30,000 in annual sales revenue; or Are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years. The Canadian Business Patterns Data records business counts by Total, Indeterminate and Subtotal categories. The establishments in the Indeterminate category include the self-employed (i.e. those who do not maintain an employee payroll, but may have a workforce consisting of contracted workers, family members or business owners). It should be noted that the Canadian Business Patterns Data uses CRA as a primary resource in establishment counts; therefore, businesses without a business number or indicating annual sales less than $30,000 are not included. The population of these small, unincorporated businesses is thought to be in the range of 600,000 in all of Canada. Town of Ajax Economic Development + Tourism Strategy 45 P age

46 3.2.1 Key Business Characteristics A detailed review of the business patterns data for the period between 2003 and 2009 for the Town of Ajax and Region of Durham provides an understanding of the growth or decline of businesses over the 6- year period and the key characteristics that define Ajax s business community. When combined with the broader industry analysis, the business patterns information will assist in refining sector opportunities for the Town of Ajax. Understanding the trends in business growth in the community provides valuable insight into the shape that future growth and investment in the Town might take. As well, it provides an indication of where the priorities of the Town should lie, especially with regards to program development and delivery and strategic planning. In terms of concentration, the following sectors (identified in Figure 25) exhibit the highest proportion of business establishments in the Town of Ajax in June 2009: Professional, Scientific and Technical Services (839 establishments) Construction (527 establishments) Other Services 7 (475 establishments). However, when the indeterminate category (self-employed) is removed, the three sectors with the highest business establishment proportions are: Other Services (284 establishments) Professional, Scientific and Technical Services (281 establishments) Retail Trade (229 establishments). By comparison, the Region of Durham has the highest proportion of business establishments in the following sectors: Professional, Scientific and Technical Services (4,461 establishments) Construction (4,185 establishments) Retail Trade (2,680 establishments). Similarly, when the indeterminate category (self employed) is removed for the Region, the three sectors with the highest business establishment proportions are: Retail Trade (1,619 establishments) Construction (1,465 establishments) Professional, Scientific and Technical Services (1,452 establishments) Figure 24 provides an indication of the growth in business establishments by two digit NAICS codes from 2003 to Those categories that have experienced the highest rate of growth (exclusive of 25 or fewer establishments) include: 7 Other Services comprises establishments, not classified to any other sector, primarily engaged in repairing, or performing general or routine maintenance, on motor vehicles, machinery, equipment and other products to ensure that they work efficiently; providing personal care services, funeral services, laundry services and other services to individuals, such as pet care services and photo finishing services; organizing and promoting religious activities; supporting various causes through grant-making, advocating (promoting) various social and political causes, and promoting and defending the interests of their members. Town of Ajax Economic Development + Tourism Strategy 46 P age

47 Other Services (excluding Public Administration) (Ajax 121.9%, Region of Durham 48.9%) Educational Services (Ajax 61.1%, Region of Durham18.0%) Transportation and Warehousing (Ajax 48.9%, Region of Durham 12.7%) Professional, Scientific and Technical Services (Ajax 40.5%, Region of Durham 13.6%) Retail Trade (Ajax 32.4%, Region of Durham 13.2%) Real Estate and Rental and Leasing (Ajax 30.6%, Region of Durham 6.3%) Figure 24 - Number of Business Establishments by Industry, Town of Ajax & Durham Region, June 2003 and 2009 Time Period June 2009 Ajax Region of Durham Industry (NAICS) Total Indeterminate Subtotal Total Indeterminate Subtotal All Industries 4,425 2,589 1,836 28,481 16,725 11, Agriculture, forestry, fishing and hunting Mining and oil and gas extraction Utilities Construction ,185 2,720 1, Manufacturing , Wholesale trade , Retail trade ,680 1,061 1, Transportation and warehousing ,430 1, Information and cultural industries Finance and insurance , Real estate and rental and leasing ,251 1, Professional, scientific and technical services ,461 3,009 1, Management of companies and enterprises , Administrative and support, waste management and remediation services , Educational services Health care and social assistance , , Arts, entertainment and recreation Accommodation and food services , Other services (except public administration) ,599 1,162 1, Public administration Time Period June 2003 % Increase Region of Town/Region Ajax Region of Durham Ajax Durham Industry (NAICS) Total Indeterminate Subtotal Total Indeterminate Subtotal Subtotal Subtotal All Industries 3,637 2,159 1,478 25,850 15,408 10, % 12.6% 11 Agriculture, forestry, fishing and hunting % -3.8% 21 Mining and oil and gas extraction % 22 Utilities % -14.3% 23 Construction ,901 2,569 1, % 10.0% Manufacturing , % -9.6% 41 Wholesale trade , % 1.6% Retail trade ,642 1,212 1, % 13.2% Transportation and warehousing , % 12.7% 51 Information and cultural industries % 4.5% 52 Finance and insurance , % 11.1% 53 Real estate and rental and leasing ,875 1, % 6.3% 54 Professional, scientific and technical services ,056 2,778 1, % 13.6% 55 Management of companies and enterprises % -24.8% 56 Administrative and support, waste management and remediation services , % 13.9% 61 Educational services % 18.0% 62 Health care and social assistance % 21.4% 71 Arts, entertainment and recreation % -4.5% 72 Accommodation and food services , % 9.0% 81 Other services (except public administration) ,014 1, % 48.9% 91 Public administration % 21.4% Source: Canadian Business Patterns Data, 2003 and 2009 Town of Ajax Economic Development + Tourism Strategy 47 P age

48 Overall, the number of business establishments (reporting employees) in the Town of Ajax increased by 24.2% from 1,478 in 2003 to 1,836 in Also notable is the increase in the number of indeterminate or self-employed establishments in the Town during the same time period, from 2,159 to 2,589. The strong growth associated with self-employment was within the Real Estate and Rental and Leasing Sector (increase of 87 firms), followed by professional, scientific and technical service firms (increase of 82 firms) and transportation and warehousing firms (increase of 77 firms). Business establishments in Ajax are dominated by companies and enterprises that employ less than 10 people, 1,091 establishments employ 1-4 people and 337 establishments employ 5-9 people. The five industries with the highest number of establishments employing either 1-4 people or 5-9 people were: Professional, scientific and technical services (1-4 people = 246 establishments, 5-9 people = 19 establishments) Other services (1-4 people = 213 establishments, 5-9 people = 47 establishments) Retail trade (1-4 people = 95 establishments, 5-9 people = 53 establishments) Health care and social assistance (1-4 people = 99 establishments, 5-9 people = 39 establishments) Construction (1-4 people = 97 establishments, 5-9 people = 34 establishments). In supporting future growth and investment in the Town, it is essential to understand and support the business needs of this element of the local economy. This is particularly relevant in light of research and documentation that suggests that an overwhelming percentage of new investment is derived from companies already located in a community. Figure 25 - Business Establishments by Size, Town of Ajax, June 2009 Industry (NAICS) Subtotal All Industries 1,836 1, Agriculture, forestry, fishing and hunting Mining and oil and gas extraction Utilities Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing Information and cultural industries Finance and insurance Real estate and rental and leasing Professional, scientific and technical services Management of companies and enterprises Administrative and support, waste management and remediation services Educational services Health care and social assistance Arts, entertainment and recreation Accommodation and food services Other services (except public administration) Public administration Source: Canadian Business Patterns Data, Creative Businesses and Enterprises In a report entitled North Shore Creative Economy Market Analysis and Action Plan, prepared for the Creative Economy Association of the North Shore (Massachusetts), broad industry categories have been Town of Ajax Economic Development + Tourism Strategy 48 P age

49 used to define the creative economy, which were then matched to 6-digit codes from the North American Industry Classification System (NAICS). In their report they have identified three important attributes for establishing a framework for assessing and analyzing the impact of the creative economy in Boston s North Shore area based on the characterization of their business enterprises. These included: A focus on enterprises (the number of businesses rather than the size of its labour force); The number of innovative and culturally based enterprises (arts and culture as well as engineering firms); The number of enterprises engaged in direct creative activities (cottage industries as well as small business) 8. Using the detailed industry categories defined by the North American Industrial Classifications System (NAICS), the next step, and further to examining creative occupations in the previous section, in defining and measuring the impact of the creative economy in the Town of Ajax is to identify the range of business and enterprises to be included. Relying on our review of secondary sources, creative businesses and enterprises are said to include: Advertising Architecture Artists Business Consulting Design Education Engineering Film Games Heritage Marketing Museums Music Performing Arts Photographic Services Public Relations Publishing Radio + Television Web + Software The number of creative businesses in Ajax increased from 638 in June 2003 to 752 in June 2009 (17.9% growth over six years). (See Figure 26). The largest number of creative businesses are in web + software (283 or 37.6% of all creative businesses), business consulting (194 or 25.8%) and engineering (103 or 13.7%). The highest rate of business growth during the six year period was in engineering (53.7%), web + software (36.7%) and design services (34.4%). 9 8 ConsultEcon, Inc., North Shore Creative Economy Market Analysis and Action Plan, April Business establishments totalling less than 10 were not included. Town of Ajax Economic Development + Tourism Strategy 49 P age

50 Figure 26 Creative Business Establishments, Town of Ajax, June 2003 and % change Total % 100.0% 100.0% Advertising % 5.0% 3.1% Architecture % 1.4% 0.7% Artists % 3.3% 3.3% Business Consulting % 30.1% 25.8% Design % 5.0% 5.7% Education % 2.4% 2.7% Engineering % 10.5% 13.7% Film % 3.1% 2.5% Games % 0.8% 0.1% Heritage 0 0 n/a 0.0% 0.0% Marketing % 0.8% 0.4% Museums % 0.3% 0.4% Music % 0.5% 0.1% Performing Arts % 1.1% 1.2% Photographic Services % 1.6% 1.1% Public Relations % 0.3% 0.4% Publishing % 1.3% 1.2% Radio & Television % 0.2% 0.0% Web & Software % 32.4% 37.6% Source: Statistics Canada, Canadian Business Patterns Data 2003 & Target Sector Opportunities Using information provided by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) REDDI database, together with the results of the detailed location quotient analysis, labour flow analysis (the exporting and importing of labour) and business patterns data the following sectors (and subsectors) have demonstrated the greatest potential for economic growth. These include: Business and Information Technology Services o Legal services o Accounting, tax preparation, bookkeeping and payroll services o Architectural, engineering and related services o Specialized design services o Computer systems design and related services o Management, scientific and technical consulting services o Administrative and support services o Other professional, scientific and technical services Health Care and Social Services o Ambulatory health care services (includes offices of health care practitioners e.g. chiropractors, optometrists, dentists, physical/occupational therapists etc.) o Hospitals Town of Ajax Economic Development + Tourism Strategy 50 P age

51 o Nursing and residential care facilities o Social services (includes individual and family services, vocational rehabilitation services, child daycare services, non-profit and volunteer sector, etc.) Wholesale Trade o Personal and household goods wholesaler-distributors o Motor vehicle and parts wholesaler-distributors o Building material and supplies wholesaler-distributors o Machinery, equipment and supplies wholesaler-distributors o Miscellaneous wholesaler-distributors o Wholesale agents and brokers o Truck transportation Sustainable Energy & Technology Based Manufacturing o Electric power generation transmission & distribution o Residential building construction o Non-residential building construction o Motor vehicle parts manufacturing o Aerospace manufacturing o Computer and electronic product manufacturing Tourism o Arts, entertainment and recreation services o Accommodation and food services An important consideration in determining the Town s target sector focus is the projected growth of these sectors at both the provincial and local level as well as emerging trends that will shape the industry in the future. A further consideration is the need to identify where economic development activities should involve investment attraction, workforce attraction, or retention and expansion efforts to ensure their long term sustainability and viability Business and Information Technology Services Sector The service sectors are becoming increasingly important as the nation transitions from a natural resource based and manufacturing based economy to a more knowledge-based economy. Nationally, the professional, scientific and technical services industry and administrative and support and waste management industry collectively represented 7.6% of the national GDP in August However, these industries have also been affected by the global recession, as relationships with the oil and gas extraction, manufacturing, construction and the majority of service-based sectors have contributed to decreased output over the past year. 10 The workforce for these two industries decreased by 6.0% between September 2008 and September In Ontario, the professional and administrative services industry represented 8.7% of the Province s GDP in This percentage has increased slightly from 8.3% in 2005, which was also prior to the economic downturn. 12 The innovation and knowledge-based economy has become a major driver of economic growth in urban areas around the world. As a result, the roles of cities and regions in a global economy are being 10 Statistics Canada, The Daily, October 30 th, Statistics Canada, The Daily, November 26 th, Ontario Ministry of Finance, Economic Accounts, Second Quarter, Town of Ajax Economic Development + Tourism Strategy 51 P age

52 redefined and reshaped. The transformation that is emerging is as significant and as challenging as the transformation made from agriculture to industry decades ago. Most significant, is the move away from jobs based on physical activity or repetitive tasks to ones that require cognitive skills such as analytical and judgement abilities. Central to this paradigm shift is the fact that creativity, knowledge and innovation and access to information have become the key to driving economic growth and promoting economic development in a globalized economy. Creativity in the context of the business and information technology services sector refers to the formulation of new ideas and the application of these ideas to scientific inventions, technological innovations and new ways of processing information. Dr. Richard Florida has popularized the notion of the Creative Class. Dr. Florida argues that many of the individuals and industries within this creative class or worker provides the high-value added output and high wages that drive growth of the larger economy. Sustaining and growing employment within this class and specifically the business and information technology services sector offers an opportunity to offset many of the losses sustained as the provincial economy restructures. Service industries, which include business services, will benefit from a more stable economy. Growth in businesses and information technology services have been occurring across several subsectors in Ajax. From 2001 to 2006, the strongest growth has been from administrative and support services, but growth has also occurred in professional, scientific and technical services. Administrative and support services include: services to buildings and dwellings, employment services, travel arrangement and reservation services, etc. All of the sub-sectors offer potential for growth based on exported local labour and underperforming industry concentration, like legal services and computer systems design and related services. Overall, data suggests Ajax has an excellent base for expansion of this sector and a strong regional economy to support businesses in the professional services sector. Continued population growth should also foster growth in several sub-sectors including legal services, accounting and tax preparation or services supporting local industries, like architectural/ engineering services. Business and information technology services represent a significant business and labour force attraction and retention opportunity for the Town Health Care and Social Services Sector The health care and social assistance industry represented $81.3 billion in industry output in August 2009, accounting for 6.9% of the nation s GDP and is one of the few sectors of the economy that experienced annual GDP growth (2.6%). 13 As well, from September 2008 to September 2009, this industry was one of the only industries to post employment gains (46,400 jobs or 3.0% greater employment). 14 In Ontario, this sector represented $30.6 billion in industry output in 2008, an increase of $2.5 billion (8.7%) since As the majority of employment in Ontario s health care industry is within the public sector, the performance of the sector largely depends on government spending. The 2009 Ontario budget placed health care spending at $40.7 billion in , with a projected increase to $47.4 billion in Statistics Canada, The Daily, October 30 th, Statistics Canada, The Daily, November 26 th, Town of Ajax Economic Development + Tourism Strategy 52 P age

53 While this is not the only measure that would indicate growth, it is reasonable to expect that (unless a new provincial government elected in 2011 alters spending) there will be continued growth of the sector into the medium term. Continued growth of the sector, paired with increasing demand from a growing population, puts pressure on the industry to find qualified health care professionals to meet the demand. Increasingly in Ontario the solution to skill shortages across all sectors is the attraction of foreign-trained professionals to meet the shortages in skilled professionals. Thus, the assessment and recognition of foreign credentials has become a priority for the Ontario government over recent years, and will likely continue to be paramount as the gap between the provincial supply of health care professionals and demand for skilled positions widens. While quality of place remains one of the most important factors in attracting health care and related knowledge-based workers, the discussion takes on greater importance when considering the importance of foreign born professionals. Not only does it become necessary to integrate these professionals into the health care workforce seamlessly, it becomes very important to provide an environment where ethnic and cultural diversity is supported, both for individuals and their families. Considering local historic growth at the subsector level in health care and social assistance, the strongest labour force growth has been social assistance (specifically individual and family services), ambulatory health care services and hospitals from 2001 to Employment growth in Ajax has been modest in social assistance and ambulatory health care services sub-industries. There has been considerable growth in health care occupations from 2001 to 2009, as revealed in the economic base analysis a 67.7% increase in the number employed in this sector in the eight year period. Health care occupations include health care professionals, registered nurses and technicians. In Ajax, health occupations grew from 1,655 in 2001 to 2,776 by It is worth noting that the Rouge Valley Ajax-Pickering redevelopment will mean greater health care services for Ajax and the surrounding area. When completed, the Ajax-Pickering Hospital will be equipped with: A new emergency department to service 60,000 patients a year; A new diagnostic imaging and cardiac diagnostic area to improve access, equipment and cardiac education; A new laboratory to service inpatients and outpatients; A new 30-bed continuing care unit; and An expanded ambulatory care unit to provide space for outpatient clinic visits, a fracture clinic and out-patient procedures. 16 This redevelopment of the hospital has the potential to attract spin-off business investment such as medical services and social services. Demand for professionals across the sector continues to outpace the supply available domestically. With considerable expansion underway at the hospital coupled with the lack of access to a university medical school, it would appear that Ajax is currently poised to experience a wider supply-demand gap across the entire sector, but especially with regards to specialist physicians. 15 Ontario Budget 2009: Chapter II: Ontario s Economic Outlook and Fiscal Plan 16 Rouge Valley Health System, Redevelopment at Rouge Valley Ajax and Pickering, viewed on December 11 th, Town of Ajax Economic Development + Tourism Strategy 53 P age

54 Thus it is very important that Ajax continues to promote its diversity to attract both domestic health care professionals and foreign-born professionals. The health care and services sector represents a significant business attraction and expansion opportunity for the Town Wholesale Trade Sector Collectively the wholesale trade and transportation and warehousing industries accounted for 10.3% of the nation s economy in 2009, with activities such as the shipping and storage of consumer goods, manufactured products and commodities. The sector has suffered some setbacks through 2008 and 2009, including a collective decrease in GDP (-5.7% from August 2008 to August 2009) and a decrease in workforce (4.7% from September 2008 to June 2009); however, it has maintained a relatively stable share of the nation s total output over the previous year. 17 In Ontario, these two industries account for 9.7% of the Province s economy in The industries have experienced GDP decline over the previous year in the magnitude of 9.5% (from June 2008 to June 2009). Much of the decline is largely tied to the Province s declining manufacturing industry and slow growth residential and non-residential construction market. 18 However, the sector is expected to rebound into The largest factors influencing this rebound should be a stabilizing manufacturing sector and increased infrastructure spending spillovers 19. Much of the sector s economic growth can be attributed to consumer expenditures. Residential housing 20 construction in Canada is expected to increase modestly in 2010 and ramp up in Also of note is the potential for economic spill-over based on the infrastructure stimulus. While directly affecting activity in the construction and manufacturing sectors, wholesale trade should receive a boost as well based on increased purchasing and service requirements. The Town has experienced considerable growth in several subsectors of importance to the wholesale trade and transportation wholesale trade industries. These include strong labour force growth in personal and household goods wholesalers/distributors and local job growth in machinery, equipment and supplies, motor vehicle parts and building material and supplies. The importance of strength in this sector is the advantage it provides to other sectors, especially manufacturing and retail trade. The attraction of wholesale trade operations supports existing business operations including hospitals, manufacturing, construction, transportation and warehousing activity. It is also important to note that unlike transportation and warehousing operations, wholesale operations can be accommodated on smaller parcels of land and often do not have the same requirement for access or visibility from major highways. Continued population growth in Durham Region will also fuel growth in the local wholesale trade sector. Suburban locations have traditionally been the most sought after locations for transportation and warehousing operations, particularly for consumer/retail oriented distribution facilities. New warehousing techniques demand modern facilities with 30-to-40 foot ceiling clearances, high-quality lighting, more docking bays and larger truck parking facilities resulting in the need for large parcels of land. 17 Statistics Canada, The Daily, October 30 th, Ontario Ministry of Finance, Economic Accounts, Second Quarter, Scotiabank Group, Provincial Trends, TD Economics, Provincial Economic Forecast, November 3 rd, 2009 Town of Ajax Economic Development + Tourism Strategy 54 P age

55 Proximity to a highway is also critical to transportation and warehousing operations. Stem Time (the time that a vehicle is moving but not getting paid for) is a major factor in the site selection process. Locations that minimize distances to customers or major highways routes are preferred. Traffic congestion can also have a significant impact on stem time. Given the only toll free route is Highway 401 and congestion along this highway can result in delays, prospects over the short term may be limited for logistics operations. The expansion of Highway 407 eastward towards Highway 35&115 will make Ajax a more attractive location; however, tolls have limited this form of development along Highway 407. For the reasons above, the wholesale trade industry and the transportation and warehousing industry, specifically truck transportation, represent a business attraction opportunity for the Town Sustainable Energy & Technology-Based Manufacturing Sector The utilities and construction sectors, which comprises the Sustainable Energy & Technology-based Manufacturing, are $98.4 billion a year industries in Canada. Although these industries decreased by 7.3% from August 2008 to 2009, much of the decline was a result of the global economic recession as energy demands and residential and non-residential construction activity declined. 21 In Ontario, production output (GDP) in the utilities and construction industries totalled $31.7 billion from June 2008 to June 2009, decreasing by 10.4%. By June 2009, the annual electrical power production, residential buildings and non-residential buildings and engineering sub-industries totalled $6.9 billion, $8.7 billion and $13.8 billion respectively. 22 Even with the slightly better performance of the Canadian economy leading up to and through the recession, tighter credit conditions and the collapse of the financial market in the United States have still affected the Canadian and Provincial utilities and construction industries. However, these industries are expected to rebound over the coming months, with growth expected to 2011 based partly on the backlog of projects created by the infrastructure stimulus fund 23. As noted previously, the recession has had an impact on both the residential and non-residential markets in Ontario, but government-related construction and programs will provide the construction industry with the necessary short-term employment gains until the recovery in other subsectors is underway, likely after The Construction Sector Council predicts that the subsector best positioned for growth during this key transitional time is those skilled in the civil trades; or those best prepared to make the transition from the residential construction market to non-residential public infrastructure and utilities construction. The Construction Sector Council schedules the rebound in the housing market to occur at a much slower pace than non-residential construction. Although there has not been employment growth in Ajax utilities and construction industries from 2001 to 2006, there is a significant net exporting of over 2,700 people employed in these industries. Strong population growth in the Town, as well as the related demand for housing in Ajax and Durham Region suggests future demand for residential and non-residential construction will be strong in the coming years. The location quotient analysis indicated a significant local labour force concentration in the utilities industry (LQ 2.71) and strong labour force concentration in building equipment contractors (LQ 1.36). The local labour force in sustainable energy represents the best opportunities for growth. The University 21 Statistics Canada, The Daily, October 30 th, Ontario Ministry of Finance, Economic Accounts, Second Quarter Scotiabank Group, Provincial Trends, The Construction Sector Council, Construction Looking Forward Key Highlights: Ontario, April 2009 Town of Ajax Economic Development + Tourism Strategy 55 P age

56 of Ontario Institute of Technology (UOIT) and Durham College in Oshawa represent a potential to attract utilities-related and construction businesses to the Town that can tap into these specialized trade skills and the programming available through: UOIT s Energy Systems & Nuclear Science and Engineering & Applied Science and Management Development Centre; and Durham College s School of Applied Sciences, Apprenticeship, Skilled Trades & Technology and School of Career Development & Continuing Education. The nature and size of the utilities industry in comparison to the construction industry is different. The utilities industry is characteristically made up of a few major businesses whereas the construction industry is made up of many small businesses that are highly mobile. There is an advantage to attracting and retaining these industries and employees in light of short-term growth potential in the sector created through infrastructure stimulus funds. A further consideration is the impact of the emerging green economy. The Province of Ontario enacted the Green Energy Act in May, The term Green Energy refers to renewable sources, conservation and clean distributed energy supported by micro grids and distributed energy systems. Renewable sources include: on-shore wind, off-shore wind, bioenergy, hydro power, solar photovoltaic, solar thermal, and geothermal. Green distributed energy sources include: district heating and cooling, Combined Heat and Power (CHP), recycled exhaust heat from gas pipeline compressor stations, and energy produced on site at low pressure sources of natural gas. 25 The purpose of the Green Energy Act is: to facilitate the development of a sustainable energy economy that protects the environment while streamlining the approvals process, mitigates climate change, engages communities and builds a world-class green industrial sector. (Ontario Ministry of Energy & Infrastructure, 2009) Employers actively engaged in green building technologies are demanding workers with traditional construction and trades skills, with up-to-date training on energy efficient construction. 26 The United Nations Environmental Program indicates that the trades with the highest potential to see growth based on retrofitting of buildings in the green economy are: pipe fitters, sheet metal workers, HVAC technicians, engineers, electricians, and general construction workers. The emergence of green building technologies and the fact that many of the core skills required to develop the Sustainable Energy sector already exist in the Region makes Ajax an attractive location. The Town of Ajax and its educational partners (i.e. UOIT and Durham College) must continue to be proactive in training needs and understanding expansion requirements for the local sector. There is a direct bearing on the Town s competitive position if it can demonstrate that it is instrumental in training a workforce for a new green economy. UOIT s new Energy Systems and Nuclear Science Research Centre represents a significant opportunity to drive demand for new green collar jobs and attract new business investment to the community in the form of companies who want access to this trained workforce. More research is required in the future to determine how the UOIT s energy systems curriculum can be adapted to produce a greater number of graduates for the green economy. 25 Ontario Ministry of Energy and Infrastructure, A Green Energy Act for Ontario: Executive Summary, December The Construction Sector Council, Construction Looking Forward Key Highlights: Ontario, April Town of Ajax Economic Development + Tourism Strategy 56 P age

57 Durham Region has traditionally been a centre of manufacturing with strength in automotive (i.e. General Motors in Oshawa), aerospace (i.e. Messier-Dowty in Ajax) and automation (i.e. Siemens in Ajax) manufacturing. Manufacturers have implemented much more sophisticated manufacturing methods and structures for developing and delivering products to market and decreasing the number of personnel to operate the facility. This technology-based manufacturing sector creates opportunities to strengthen and deepen manufacturing activity. In the Durham Region Advanced Manufacturing Cluster Study (2007) it states that to strengthen the sector, it is necessary to understand the nature and scope of the manufacturing activity and to identify the actors who are already a part of this shift. To deepen manufacturing activity, it is necessary to understand a region s unique assets and resources. They are important to understand in order to provide the region with unique competitive advantages and provide strong value offerings or value propositions for potential investors. In addition to the UOIT assets already stated, other assets include the Integrated Manufacturing Centre, Automotive Centre of Excellence, which is an automotive research and development centre, the planned Research and Innovation Technology Park, and Durham College s Integrated Manufacturing Centre. The strong value offering or value proposition that puts the Region at a competitive advantage is the concentration and interconnectedness of the technology-based manufacturing sector (specifically automotive and aerospace manufacturing), the energy sector and the environmental sector. There are cost cutting synergies between these three sectors that can be realized by local businesses in Ajax. The greatest competitive advantage for the technology based manufacturing lies in activities that incorporate elements of activity from each of the three supporting sectors. The Durham Region Advanced Manufacturing Cluster Study uses the example of hydrogen fuel research and investment that combines elements of energy production, environmental technologies and automotive applications. This represents an area of activity where the region s concentration of industrial, commercial and institutional strengths may be leveraged for investment attraction. For these reasons stated, the sustainable energy and technology based manufacturing sector represents a business expansion and attraction target for the Town Tourism Sector At the core of the creative economy are the creative industries which often include a community s or region s tourism economy. In assessing Ajax s tourism sector consideration has been given to: 1. Arts, Entertainment and Recreation (NAICS code 71) This comprises performing arts, spectator sports, promoters, artists and writers, heritage institutions, amusement and gambling establishments, museums and art galleries, etc. A way to think of this component of the industry is that it consists of the activities that attract tourists and visitors into a community. 2. Accommodation and Food Services (NAICS code 72) - This consists largely of the services that are made available to travelers when they come to a community. It comprises hotels, motels, campgrounds, Bed and Breakfast establishments, full and limited service restaurants, and drinking establishments. While tourists purchase more in a community than is offered by these sorts of attractions and support services (e.g. taxis, souvenir retail, etc.) they do serve as useful proxies to describe the overall state of the industry in a given community. Town of Ajax Economic Development + Tourism Strategy 57 P age

58 Interesting comparisons can be made by examining the numbers of establishments in these industries with those in the Region of Durham overall. A benchmark comparison is the fact that Ajax has 16% of the population of Durham Region; accordingly, one would expect that there should be approximately 16% of establishments of businesses of various types in the Region as well. The following shows the actual distribution: Figure 27 Tourism Industry, Town of Ajax, 2001 to 2009 Tourism Industry Cluster Arts, Entertainment and Recreation (NAICS 71) Establishments Sub Sector in Ajax - Performing Arts % - Spectator Sports % % - Independent Artists, Writers, Performers Source: Statistics Canada, Canadian Business Patterns Data, Establishments in Durham Region % of Establishments in Ajax (rounded) - Agents and % Managers - Gambling % Establishments - Other, businesses, % not elsewhere specified Total % Accommodation and - Traveller % Food Service Accommodation (NAICS 72) - Full Service % Restaurants - Limited Service % Eating Establishments - Special Food % Services - Drinking % Establishments - Other, businesses, % not elsewhere specified Total 167 1, % Areas of relative strength in tourism (i.e. where Ajax s share of establishment is greater than 16%) are in terms of agents and managers, independent artists, writers and performers, special food services (e.g. caterers) and drinking establishments. Ajax is one of the fastest-growing communities in Ontario (population growth over the period was 4.5% per annum more than triple the provincial growth rate of 1.3% per annum and more than double Durham Region s rate of 2.1% per annum. (The City of Toronto, by contrast was essentially static, Town of Ajax Economic Development + Tourism Strategy 58 P age

59 with growth of 0.2% per year.) This growth will naturally bring with it growth in certain types of tourism development. As the population grows, so too will goods and services that cater to residents and visitors. Ajax s natural population and business growth momentum will bring with it a certain amount of tourism development, just as a consequence of the natural growth of the population. 3.4 Summary of Findings Based on the foregoing high level review of the Town of Ajax industry sector performance the following findings are considered relevant to the development of the Economic Development and Tourism Strategy. Much of the Town s recent labour force growth has been fuelled by population growth rather than any significant competitive advantage on the part of the Town of Ajax. An analysis of the Town s business and industry specialization reveals that the highest concentration of labour as compared to the Province is in: o Utilities (LQ 2.71) o Finance and Insurance (LQ 1.79) o Information and Cultural Industries (LQ 1.50) o Wholesale Trade (LQ 1.20) o Retail Trade (LQ 1.18) An analysis of the Region of Durham s business and industry specialization reveals four consistent sectors of concentration: o Utilities (LQ 3.14) o Finance and Insurance (LQ 1.22) o Information and Cultural Industries (LQ 1.14) o Wholesale Trade (LQ 1.20) Business growth is also a strong indicator of economic potential within a local or provincial economy. In the case of the Town of Ajax, the highest proportion of business establishments were in: o o o Professional, Scientific and Technical Services (839 establishments) Construction (527 establishments) Other Services (except public administration) (475 establishments) There was a 24.2% increase in the number of establishments in the Town of Ajax from June 2003 to June 2009 with much of this growth occurring in: o Other Services (except public administration) (121.9%); o Educational Services (61.1%) Town of Ajax Economic Development + Tourism Strategy 59 P age

60 o Transportation and Warehousing (48.9%) o Professional, Scientific and Technical Services (40.5%) o Retail Trade (32.4%) o Retail Estate and Rental and Leasing (30.6%) A total of 1,836 establishments in Ajax reported employees. The majority of these establishments employ less than 10 people, with 1,091 establishments employing 1-4 people and 337 establishments employing 5-9 people. While this suggests a high level of entrepreneurism it has implications for local economic development efforts with regards to support for small business to help them grow into 10 and 25 employee companies, e.g. business mentoring, business planning and development of export strategies. Creative businesses grew by 17.9% in Ajax between 2003 and Many of these establishments provide web + software, business consulting, and engineering services. The highest rate of business growth is in engineering, web + software and design services. Based on the current performance of the Town the following sectors should form the basis for its business investment attraction and expansion efforts in the future: o Business Services and Information Technology Services Legal services, accounting, financial services, specialized design, architecture and engineering o Health Care and Social Services Health care practitioners, medical and diagnostic laboratories, research and development laboratories and associated manufacturing o Wholesale Trade Consumer products, support activities for health care and manufacturing sectors o Sustainable Energy & Technology Based Manufacturing Non-residential, public infrastructure and utilities construction Technology based automotive parts and aerospace manufacturing. o Tourism Arts, entertainment and recreation services Accommodation and food services. Investment attraction efforts must address both the attraction of business operations and the need to attract, develop and sustain the workforce required to support the expansion and development of these sectors locally. Town of Ajax Economic Development + Tourism Strategy 60 P age

61 4 Employment Land Review Employment land has traditionally referred to land in industrial areas. Today however, employment land accommodates a much wider range of uses, including both traditional activities such as manufacturing, distribution and warehousing, as well as research and development activity, offices, service commercial uses, institutional uses and recreational facilities. Employment land is important in the context of economic development primarily because of the role that it plays in accommodating a community s employment growth. In this situation, the provision of transportation and servicing infrastructure to a community s employment areas is undoubtedly one of the more significant levers available to shape future urban form, and maintain local quality of life. The provision of employment can also contribute to a better live-work relationship with fewer residents needing to commute to job opportunities outside the community. It can also provide a greater diversity in the land base, allowing flexibility in responding to economic change. The role and importance of available, serviced and high quality employment land in Ajax therefore, makes it an essential consideration to the preparation of an economic development strategy, as it directly relates to the future economic prosperity and competitiveness of the community; its ability to continue to attract or provide high quality jobs and generate wealth and investment. In reviewing the quality of Ajax s employment lands and the market conditions impacting their contribution to the long term sustainability of the community, consideration has been given to the current employment land supply as defined by the Town of Ajax Draft Employment Lands Strategy and an industrial land inventory undertaken by CB Richard Ellis Canada (CBRE). 4.1 Assessment of Ajax s Employment Areas Quality of Eastern GTA Industrial Product The Town of Ajax employment lands currently comprises approximately 8% (8.1 million square feet) of the total Eastern GTA 27 industrial market. Based on research undertaken by CBRE, it is estimated that in 2010, 65% of the Eastern GTA industrial inventory is made up of manufacturing businesses with the balance comprised in large part, of warehousing and distribution facilities. In addition, almost half of the existing manufacturing businesses in the Eastern GTA are related to the automotive industry. Further to these findings, it was noted that as one travels eastwards the percentage of manufacturing devoted to the automotive industry increases. Not surprisingly, this trend can be attributed to the fact that General Motors Canada s main manufacturing plant is located in Oshawa. When compared to Ajax, the Pickering industrial market is approximately 9.1 million square feet and seen to be Ajax s largest competitor, particularly in the attraction of larger tenants looking to relocate from Scarborough. In contrast, the Town of Whitby is not seen to be in as much direct competition with Ajax as it presently sits beyond the border where companies feel they are too far from Toronto. In support of these market observations, CBRE s real estate professionals point to the fact that industrial product in Pickering outperforms Ajax product due to two critical factors: newer vintage (less wartime era 27 Eastern GTA includes Scarborough and all of the communities in the Region of Durham Town of Ajax Economic Development + Tourism Strategy 61 P age

62 product) and bigger product (larger spaces able to house larger tenants). On all other characteristics Ajax competes evenly with Pickering. Figure 28 supports information received from CBRE s Eastern GTA real estate representatives that suggest: The percentage of office space as a part of industrial product remains competitive and within the industry standard. That although the average vintage of Ajax industrial space remains newer and thus more attractive than that of the Eastern GTA, it is older and therefore less competitive when compared to Durham Region as a whole. Durham Region has industrial product of a newer vintage that aids in drawing tenants out of their older spaces in Scarborough. However, Ajax suffers from being less competitive than that of its western neighbour Pickering, due to much of its product being older industrial product. The average additional rents, property taxes and TMI s at the time of this report indicate that Ajax remains a cheaper alternative to Eastern GTA and the Durham Region. Ajax product clear heights are below those of the industry norm. This is another indication of older industrial product and may result in the properties being less competitive in attracting new users. Figure 28 Comparison of key statistics in Eastern GTA, Durham Region and Ajax Characteristic Eastern GTA Durham Region Ajax % of Buildings with Office Space 40.5% 38.0% 42.8% Avg. % of Office Space 14.9% 14.4% 12.2% Avg. Vintage Year Avg. Additional Rents (psf) $2.57 $2.37 $1.81 Avg. Property Taxes (psf) $2.12 $1.73 $1.50 Avg. TMI (psf) $3.07 $2.83 $2.34 Avg. Clear Heights 19.8 feet 20.2 feet 18.5 feet Avg. Square Footage 66,625 sf 87,638 sf 49,318 sf Avg. Lot Size 4.35 acres 5.92 acres 4.53 acres Source: CB Richard Ellis Canada, Industrial Real Estate Inventory 2010 In order to build momentum in business growth, municipalities must also be able to attract large scale business operations as larger businesses attract smaller ancillary businesses to locate near and around them. Following this line of logic a review of larger industrial buildings (properties in excess of 45,000 s.f.) and their tenants in Ajax was also undertaken. This research suggests that the vast majority of large businesses in Ajax are in the manufacturing industry and that the average ceiling height for large industrial buildings in Ajax is 22 feet. This is not surprising as larger tenants require higher ceiling heights to accommodate shipments and manufacturing equipment. The average age of these buildings is 25 years. The average ceiling heights of Ajax buildings that are 10 years old or newer is in excess of 24 feet. Town of Ajax Economic Development + Tourism Strategy 62 P age

63 Related research also suggests that there appears to be four main reasons for large businesses choosing to locate in Ajax: 1) They are local business that started and grew in Ajax 2) The acquisition of local businesses 3) Strategically close to customers or suppliers and 4) A relocation move from Scarborough. It is worth noting that the Scarborough area is running out of larger industrial product. In addition, the real estate costs to locate and operate businesses in Scarborough have been rising. This has contributed to Ajax becoming a more appealing market for some businesses Quality of Ajax Employment Lands A Town of Ajax Employment Land Strategy is being prepared by Watson & Associates. In developing an understanding of how best to accommodate employment growth in the future the consultants have assessed the current inventory of employment land based on a number of broad parameters that include: Physical and economic characteristics Transportation and access Amenities and aesthetics This assessment has also given consideration to development and redevelopment within the Town s employment areas based on the opportunities associated with the broad industry categories that are expected to growth both within Ajax and the surrounding Durham Region. Figure 29 identifies the location of the Town s employment lands. Town of Ajax Economic Development + Tourism Strategy 63 P age

64 Figure 29 Ajax Employment Areas Carruthers Creek Business Park Notion Road Audley Road Business Area GO Transit Node Salem Centre Business Area Church Street Industrial Area Central Employment Area Source: Town of Ajax Proposed Official Plan Amendment No.41, Residential Intensification, Town of Ajax, Town of Ajax Economic Development + Tourism Strategy 64 P age

65 Taken together with the review conducted by the project team, the Town s employment areas and respective strengths, weaknesses and opportunities are summarized as follows: 1. Audley Road Business Area Strengths Ajax Downs seen as a magnet to attract other recreation and entertainment activities The large concentration of vacant employment land offers potential for campus style development Large vacant parcels offer wide market choice Proximity and visibility to Hwy 401 Weaknesses Westward towards Ajax Downs, Ajax Limited number of land owners in area to the north of Hwy 401 Portion of lands offered for lease rather than for sale which limits the marketability of property Largest landowner not motivated by sale of lands Opportunities Future highway access will be provided via partial interchanges along the proposed Highway 401/407 link Tourism attractions Private sector gaming opportunities Manufacturing, major office, wholesale trade and prestige commercial tenants Potential for developing a regional entertainment node in the Audley Road and Kingston Road East area adjacent to Ajax Downs and Slots. Build stronger relationships with private landowners to help realize the area s employment potential Town of Ajax Economic Development + Tourism Strategy 65 P age

66 2. Carruthers Creek Business Park Strengths Park offers the largest greenfield shovel-ready employment lands Optimal size for a business park with a strong base of existing businesses enabling a campus-like setting and opportunities for design build and flexibility for design and size Harwood provides street traffic exposure in newer part of town Park is highly accessible to Hwy 401 via the Salem Road interchange Wide variety of market choices and ability to do design build as well as own Experienced and prominent large developer engaged and prepared to be flexible in sale or lease arrangements for the Harwood site Higgins Development, Ajax Canada Post Corporation, Ajax Weaknesses Leasing market is relatively weak across all of the Durham Region Two large distribution centres in Whitby and Oshawa have sat vacant for a year, with no market interest Largest percentage of leasing opportunity is short term overflow Lack of prime visibility as business park is removed from 401 Insufficient public transportation Premium price for serviced industrial land compared to other locations in Durham Region Opportunities Consumer goods warehousing and distribution Manufacturing, multi-tenant industrial operations, flex space and major office Build stronger relationships with private landowners to help realize the area s employment potential Town of Ajax Economic Development + Tourism Strategy 66 P age

67 3. Central Employment Area Strengths Well established industrial area with critical mass of businesses and strong manufacturing base Excellent transportation infrastructure with rail and access and visibility to Hwy 401 GO Transit station access Diverse mix of industrial and complementary commercial uses Opportunities to do land assemblies Proximity to town centre Outdoor storage permitted Weaknesses Limited development potential given supply of vacant land Age and general industrial look makes the area look less attractive than other employment areas Most sites have little or no highway exposure and poor public transit access Significant number of underutilized sites and vacant buildings Cost to tear down existing buildings and build new is more expensive than green field development Power supply is not reliable there is either not enough, and/or limited ability to expand energy usage without huge capital investment (decreases ability to expand operations) Opportunities Develop vacant parcels along Hwy 401 to more prestige uses Redevelopment/refurbishment of vacant sites/buildings Small and medium sized advanced manufacturing operations, smaller scale wholesale trade and commercial uses Intensification opportunities on infill sites and redevelopment of greyfield sites Improvements to transportation infrastructure and connectivity to Westney Road is possible Accommodate non-profit organizations through cost sharing arrangements 4. Salem Centre Business Area Strengths Concentration of vacant employment lands with direct access and exposure to Hwy 401 at the Salem Road interchange A number of prestige employment uses already occupying area A number of on-site amenities are provided on the north side of Hwy 401 including Ajax Convention Centre, Hilton Garden Inn as well as restaurants and personal service uses Visibility from Highway 401 Town of Ajax Economic Development + Tourism Strategy 67 P age

68 Ajax Convention Centre Hilton Garden Inn, Ajax Weakness Leasing market for office development is soft in Durham at the moment Opportunities Salem Road and Hwy 401 represent a significant gateway location for the town Land assembly is possible Proximity to UOIT and the Toronto market positions the area well for business synergies with academic institutions and financial and insurance services Sufficient demand for an additional hotel Major office tenants on interchange lands are possible Build stronger relationships with private landowners to help realize the area s employment potential 5. Church Street Industrial Area Strengths Accessible to Hwy 401 via Westney Road Presence of tier one employer with Volkswagen Headquarters Outdoor storage permitted Weaknesses Most businesses are small to medium sized enterprises Most sites have little to no exposure to Hwy 401 and poor public transportation access Limited amount of vacant land Opportunity Attract companies looking for outdoor storage Town of Ajax Economic Development + Tourism Strategy 68 P age

69 6. Notion Road Strength Exposure to Hwy 401 Outdoor storage permitted Weaknesses Few businesses operate in the area Employment lands are located in the floodplain which limits development options Most sites have little to no exposure to Hwy 401 and poor public transportation access Far from Ajax town centre Many businesses along Notion Road have outside storage Limited amount of vacant land Internet and high speed capabilities are limited and/or non-existent Poor visual image of the area Opportunities Redevelopment of parcels along Hwy 401 to more prestige uses Will continue to attract companies looking for outdoor storage 7. GO Transit Node (Westney Road & Highway 401) Strengths Immediate access to the GO Transit station Access to Durham Region Transit Terminal Proximity to Hwy 401 Well established area of the Town Weaknesses Cost to tear down existing buildings and build new, more intensified buildings is more expensive than green field development Industrial/commercial look of the area may deter people from wanting to live in this area Opportunities Create the development incentives for a high density mixed use area that enables a living and working environment Investigate the feasibility of developing public parking garages to facilitate office development Town of Ajax Economic Development + Tourism Strategy 69 P age

70 While consideration of the attributes that distinguish the Town s employment lands is an important factor in determining regional and by extension Ajax s competitiveness, the pattern of development in the region is also a factor particularly as it relates to the demand for and availability of serviced or shovel ready employment land. Based on information contained within the Town of Ajax Employment Land Strategy, the Town has experienced an average annual absorption rate on its employment lands of 12 net hectares per year. This performance is comparable to other shoreline Durham Region municipalities but lower that most other GTAH communities including Milton, Hamilton and Caledon which more directly benefit from proximity to an international airport and a superior highway network. The Town also has a relatively lower amount of designated vacant employment land that many other municipalities in the GTAH. However, a greater proportion of these lands are considered developable or shovel-ready. While Pickering, Whitby and Clarington have considerably more designated land, much of this is not serviced. Currently, the majority of un-serviced designated employment land in Whitby and Pickering is situated along the 407 corridor and will only be available in the medium to longer term. This suggests that Ajax has a prime opportunity to capitalize on demand for employment land in Durham Region over the short to medium term subject to market conditions. However, issues such as the majority of the Town s vacant employment lands are owned by a limited number of landowners and lands are not offered for sale but rather offered as a long term land lease. This market condition has compromised Ajax as an expansion location. According to representatives of CBRE Canada this fact has deterred business interest in the Town. Based on these findings, the following recommendations in Figure 30 have been developed as it relates to the Town s individual employment areas. They take into consideration the Town s target industries as discussed earlier in the report and the findings of the Town s Employment Land Strategy. Town of Ajax Economic Development + Tourism Strategy 70 P age

71 Figure 30 Ajax Employment Areas Target Sectors, Key Location Criteria, Specific Recommendations Employment Area 1. Audley Road Business Area Designated Uses Permitted Uses General Employment Offices, research and development facilities, manufacturing, warehousing, distribution facilities, and the retail sale of products manufactured, processed or assembled on the premises. Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Specific Recommendations Business and Larger office development may prefer a prestige or Yes Pursue highway access via partial interchanges along the proposed Highway 401/407 link. Information campus like setting Technology Services Access to skilled labour force Pursue opportunities to develop tele-work facilities at gateway locations. Small office users will require flexible leasing Enable a broad range of users by encouraging flexible office development and a range of lot sizes. arrangements and floor plates Access and exposure to 400 series highway Continue to advocate for improvements to local and regional transportation and transit infrastructure. Proximity to amenities such as restaurants Implement urban design guidelines will ensure high quality building standards. Limit potential to detract from prestige employment setting by limiting the amount of population based employment uses in Prestige Employment designation. Health Care and Proximity to health care services facility Yes Enable a broad range of users by encouraging flexible office development. Social Services Growing population base to support health care Incorporate accessibility as a principle of development. practitioners Concentration of other practitioners in order to drive synergies Small office space requirements and flexible leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway Yes Enable highway access via partial interchanges along the proposed Highway 401/407 link. Efficient and effective vehicular access Target consumer goods warehousing and distribution. Large parcel sizes Enable a broad range of users by encouraging a range of lot sizes. Sustainable Energy Flexibility in zoning, high ceilings Competitive land prices Extensive buffering Access to 400 Series Highway Yes Create highway access via partial interchanges along the proposed Highway 401/407 link. & Technology Based Access to skilled and unskilled labour force Enable a broad range of users by encouraging flexible office development and a range of lot sizes. Manufacturing Competitive land prices Continue to advocate for improvements to local and regional transportation and transit infrastructure. Proximity to related industries and supply chain considerations Minimize potential to detract from prestige employment setting by limiting the amount of population based employment uses in Prestige Employment designation. Proximity to market Tourism Presence of attractive amenities Yes Presence of Ajax Downs suggests opportunity to create an entertainment and recreation node. Proximity to population base Attract additional private sector gaming opportunities. Minimal conflicts with other uses Secure public sector commitment for a recreation complex or campus. Town of Ajax Economic Development + Tourism Strategy 71 P age

72 Employment Area: 2. Carruthers Creek Business Park Designated Uses Permitted Uses General Employment Offices, research and development facilities, manufacturing, warehousing, distribution facilities, and the retail sale of products manufactured, processed or assembled on the premises. Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Specific Considerations Business and Larger office development may prefer a prestige or Yes Pursue highway access via partial interchanges along the proposed Highway 401/407 link. Information campus like setting Technology Services Access to skilled labour force Enable a broad range of users by encouraging flexible office development, live work opportunities in addition to a range of lot sizes. Small office users will require flexible leasing Continue to advocate for improvements to local and regional transportation and transit infrastructure. arrangements and floor plates Access and exposure to 400 series highway Implement urban design guidelines that ensure high quality building standards. Proximity to amenities such as restaurants Minimize potential to detract from prestige employment setting by limiting the amount of population based employment uses in Prestige Employment designation. Health Care and Proximity to health care services facility Yes but limited Enable a broad range of users by encouraging flexible office development. Social Services Growing population base to support health care Incorporate accessibility as a principle of development. practitioners Concentration of other practitioners in order to drive synergies Small office space requirements and flexible leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway Yes Target consumer goods warehousing and distribution. Efficient and effective vehicular access Explore the potential for rail access in northern portions of the park. Large parcel sizes Pursue highway access via partial interchanges along the proposed Highway 401/407 link. Flexibility in zoning, high ceilings Ensure compatibility between industrial uses with neighbouring residential uses to the west of Harwood Avenue. Sustainable Energy & Technology Based Competitive land prices Extensive buffering Access and proximity to 400 Series Highway Yes Technology based manufacturing should include the targeting of food based manufacturing, consumer products manufacturing. Manufacturing Access to skilled and unskilled labour force Enable a broad range of users by encouraging flexible lot sizes. Competitive land prices Continue to advocate for improvements to local and regional transportation and transit infrastructure. Proximity to related industries and supply chain Create highway access via partial interchanges along the proposed Highway 401/407 link. considerations Proximity to market Ensure compatibility with neighbouring residential uses to the west of Harwood Avenue. Minimize potential to detract from prestige employment setting by limiting the amount of population based employment uses in Prestige Employment designation. Implement urban design guidelines will ensure high quality building standards. Tourism Presence of attractive amenities No Proximity to population base Minimal conflicts with other uses Town of Ajax Economic Development + Tourism Strategy 72 P age

73 Employment Area: 3. Central Employment Area Designated Uses Permitted Uses General Employment Offices, research and development facilities, manufacturing, warehousing, distribution facilities, and the retail sale of products manufactured, processed or assembled on the premises. Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Specific Recommendations Business and Larger office development may prefer a prestige or Yes Develop vacant parcels along Hwy 401 to more prestige uses. Information campus like setting Technology Services Access to skilled labour force Continue to advocate for improvements to local and regional transportation and transit infrastructure. Small office users will require flexible leasing Ensure adequate space for small and medium sized commercial uses. arrangements and floor plates Access and exposure to 400 series highway Support employment intensification opportunities on infill sites and redevelopment of greyfield sites. Proximity to amenities such as restaurants Ensure adequate space for start-ups. Explore low cost incubator facilities for artists. Introduce tax increment financing (TIF) or tax increment equivalent grants (TIEG) as a way to encourage the redevelopment of area. Fund public realm improvements identified in the Central Employment Area Land Use Study. Health Care and Proximity to health care services facility Yes Broaden employment area boundaries to include hospital location. Social Services Growing population base to support health care Broaden permitted uses to include laboratories. practitioners Concentration of other practitioners in order to drive Continue to pursue the redevelopment of the Ajax Steam Plant into a modern district energy facility. synergies Small office space requirements and flexible Fund public realm improvements identified in the Central Employment Area Land Use Study. leasing arrangements Accessible property designs Continue to advocate for improvements to local and regional transportation and transit infrastructure. Wholesale Trade Access to 400 Series Highway Yes Redevelopment/refurbishment of vacant sites/buildings. Efficient and effective vehicular access Ensure adequate space for smaller scale wholesale trade and commercial uses. Large parcel sizes Explore the use of tax increment financing (TIF) or tax increment equivalent grants (TIEG). Flexibility in zoning, high ceilings Fund public realm improvements identified in the Central Employment Area Land Use Study. Competitive land prices Continue to pursue the redevelopment of the Ajax Steam Plant into a modern district energy facility. Sustainable Energy Extensive buffering Access and proximity to 400 Series Highway Yes Redevelopment/refurbishment of vacant sites/buildings. & Technology Based Access to skilled and unskilled labour force Small and medium sized advanced manufacturing operations, smaller scale wholesale trade and Manufacturing commercial uses. Competitive land prices Ensure adequate space for start-ups. Proximity to related industries and supply chain Intensification opportunities on infill sites and redevelopment of greyfield sites. considerations Proximity to market Create provisions for a Community Improvement Plan and explore the use of tax increment financing (TIF) or tax increment equivalent grants (TIEG). Continue to pursue the redevelopment of the Ajax Steam Plant into a modern district energy facility. Fund public realm improvements identified in the Central Employment Area Land Use Study. Continue to advocate for improvements to local and regional transportation and transit infrastructure. Elevate Town's involvement in the Region's energy cluster. Provide inter-sector and cross sector networking opportunities. Promote local business and entrepreneurial success stories. Tourism Presence of attractive amenities No. Proximity to population base Minimal conflicts with other uses Town of Ajax Economic Development + Tourism Strategy 73 P age

74 Employment Area: 4. Salem Centre Business Area Designated Uses Permitted Uses General Employment Offices, research and development facilities, manufacturing, warehousing, distribution facilities, and the retail sale of products manufactured, processed or assembled on the premises. Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability Specific Recommendations Business and Larger office development may prefer a prestige or Yes Create and promote employment area as a gateway location. Information campus like setting Technology Services Access to skilled labour force Continue to advocate for improvements to local and regional transportation and transit infrastructure. Small office users will require flexible leasing Implement urban design guidelines that ensure high quality building standards. arrangements and floor plates Access and exposure to 400 series highway Pursue opportunities to develop a telework, co-location facility. Health Care and Proximity to amenities such as restaurants Proximity to health care services facility Yes Enable a broad range of users by encouraging flexible office development. Social Services Growing population base to support more health Incorporate accessibility as a principle of development. care practitioners Concentration of other practitioners Small office space leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway No Sustainable Energy Efficient and effective vehicular access Large parcel sizes Flexibility in zoning, high ceilings Competitive land prices Extensive buffering Broad range of permitted uses No Enable a broad range of users by encouraging flexible lot sizes. & Technology Based Access to 400 Series Highway Continue to advocate for improvements to local and regional transportation and transit infrastructure. Manufacturing Access to skilled and unskilled labour force Implement urban design guidelines that ensure high quality building standards. Competitive land prices Minimize potential to detract from prestige employment setting by limiting the amount of population based employment uses in Prestige Employment designation. Proximity to related industries Proximity to market Tourism Presence of attractive amenities Yes Support attraction of additional hotel. Proximity to population base Undertake greater promotion of existing assets - hotel, convention facility. Minimal conflicts with other uses Employment Area: 5. Church Street Industrial Area Designated Uses Permitted Uses General Employment Offices, research and development facilities, manufacturing, warehousing, distribution facilities, and the retail sale of products manufactured, processed or assembled on the premises. Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Business and Information Technology Services Health Care and Social Services Larger office development may prefer a prestige or No campus like setting Access to skilled labour force Small office users will require flexible leasing arrangements and floor plates Access and exposure to 400 series highway Proximity to amenities such as restaurants Proximity to health care services facility No Specific Recommendations Growing population base to support more health care practitioners Concentration of other practitioners Small office space leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway Yes Continue to attract companies looking for outdoor storage. Efficient and effective vehicular access Large parcel sizes Flexibility in zoning, high ceilings Competitive land prices Sustainable Energy Extensive buffering Broad range of permitted uses Yes Continue to attract companies looking for outdoor storage. & Technology Based Access to 400 Series Highway Manufacturing Access to skilled and unskilled labour force Competitive land prices Proximity to related industries Tourism Presence of attractive amenities No Proximity to population base Minimal conflicts with other uses Town of Ajax Economic Development + Tourism Strategy 74 P age

75 Employment Area: 6. Notion Road Industrial Area Designated Uses Permitted Uses Prestige Employment Business and professional offices, research and development facilities, manufacturing in wholly enclosed buildings, warehousing, distribution centres, retail sale of products (Employment Policy manufactured, processed or assembled on the premises, automobile dealerships, financial institutions, restaurants, personal service establishments, athletic clubs, private Area 1) recreational facilities, banquet facilities, convention centres, hotels and motels and uses ancillary to hotels and motels. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Business and Information Technology Services Health Care and Social Services Prestige Image - Urban Design Guidelines ensure No high quality building standards Access to skilled labour force Small flexible leasing arrangements Access and exposure to 400 series highway Proximity to health care services facility No Growing population base to support more health care practitioners Concentration of other practitioners Small office space leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway No Efficient and effective vehicular access Large parcel sizes Flexibility in zoning, high ceilings Competitive land prices Extensive buffering Specific Recommendations Sustainable Energy Broad range of permitted uses Yes Redevelop parcels along Hwy 401 to more prestige and intensified uses. & Technology Based Access to 400 Series Highway Continue to attract companies looking for outdoor storage. Manufacturing Access to skilled and unskilled labour force Implement urban design guidelines that ensure high quality building standards. Competitive land prices Proximity to related industries Tourism Presence of attractive amenities No Proximity to population base Minimal conflicts with other uses Employment Area: 7. GO Transit Node (Westney Road & Highway 401) Designated Uses Permitted Uses Employment Mixed Broad variety of prestige employment and commercial activity that is compatible with adjacent residential uses; office uses, institutional uses such as public health facilities, Use II places of worship, medical offices, trade and business schools, community facilities such as day care facilities, public parking facilities, parks, urban squares and open space linkages; arts, cultural, entertainment and recreational uses; non-profit clubs and organizations; parking lots as primary uses and new motor vehicle sales establishments; utilities; and residential uses contingent upon the provision of office/employment uses. Target Sector Key Locational Criteria Employment Area Suitability (Yes/No) Specific Recommendations Business and Larger office development may prefer a prestige or Yes Ensure adequate space for small and medium sized commercial uses. Information campus like setting Technology Services Prestige Image - Urban Design Guidelines ensure Support intensification opportunities on sites. high quality building standards Access to skilled labour force Ensure adequate space for start-ups. Small office users will require flexible leasing arrangements and floor plates Create provisions for a Community Improvement Plan and explore the use of tax increment financing (TIF) or tax increment equivalent grants (TIEG). Access and exposure to 400 series highway Continue to advocate for improvements to local and regional transportation and transit infrastructure. Proximity to amenities such as restaurants Enable public parking in the area. Health Care and Proximity to health care services facility Yes Enable a broad range of users by encouraging flexible office development. Social Services Growing population base to support more health Incorporate accessibility as a principle of development. care practitioners Concentration of other practitioners in order to drive Continue to advocate for improvements to local and regional transportation and transit infrastructure. synergies Small office space requirements and flexible leasing arrangements Accessible property designs Wholesale Trade Access to 400 Series Highway No Sustainable Energy Efficient and effective vehicular access Large parcel sizes Flexibility in zoning, high ceilings Competitive land prices Extensive buffering Broad range of permitted uses No & Technology Based Access to 400 Series Highway Manufacturing Access to skilled and unskilled labour force Competitive land prices Proximity to related industries and supply chain considerations Proximity to market Tourism Presence of attractive amenities No. Proximity to population base Minimal conflicts with other uses Town of Ajax Economic Development + Tourism Strategy 75 P age

76 5 SWOT Assessment An important component in the advancement of an economic development and tourism strategy for the Town of Ajax is the opinions and thoughts of those business and industry leaders that already operate within the Town. Area businesses and community leaders can provide an excellent source of up-to-date information or perceptions, as it relates to an area s strengths and weaknesses as well as the opportunities and threats that may be confronting industry groups or a region as a whole in its efforts to attract and retain business investment. In this context a SWOT Assessment (Strengths, Weaknesses, Opportunities and Threats) was undertaken to examine the Town of Ajax ability to support the attraction, retention and expansion of business and industrial investment, its capacity to deliver on economic development activities and programming and the overall direction of the strategy and the sustainability of the community over the longer term. This effort was accomplished through a background and literature review and discussions with business and community leaders. Between December 2009 and February 2010, over 60 individuals participated in the telephone and face-to-face interviews and close to 50 participated in one of the three focus group sessions. These include representatives from government, health and education, arts and culture, tourism and the general business community. The intent was to elicit more detailed input on the issues and challenges facing the Town as it advances its economic development and tourism interests. Over 150 participants from across business sectors and residents participated in an on-line survey that was hosted by the Town, which gathered additional information from the business community and public at-large. The analysis provides insight into the perceived gaps and opportunities for the Town of Ajax in its efforts to advance economic growth and serves to further inform the discussion as to the Town s competitive position and the direction of the Economic Development and Tourism Strategy. The key findings of the SWOT Assessment are summarized below. 5.1 Strengths It is essential that an economic development and tourism strategy builds off and capitalizes on the unique elements and strengths of a local community in a way that will lead to economic growth and critical mass of business and investment activity in the future. The following identifies some of the key elements on which Ajax can build a strong economic future Depth of Skilled Workforce As indicated by the labour force commuting patterns, there are a large number of people who live in Ajax and work in the Toronto, and to a lesser extent Markham. However, there is great depth to the Town s labour force as many of these people are well educated and possess specialized skills sets. More specifically, much of Ajax labour force is employed in Toronto s financial and professional services industries Growth in Cultural Diversity Ajax s visible minorities are the fastest growing segment of the local population, increasing 79.1% from 2001 to The most notable increases were in the South Asian, Black and Filipino communities. Ajax has also successfully attracted immigrants to the community. The largest immigrant populations are from the Caribbean, the United Kingdom and South America. Town of Ajax Economic Development + Tourism Strategy 76 P age

77 5.1.3 Housing Affordability In the Greater Toronto Area, Ajax is one of the most affordable places to live in terms of home purchasing costs. Mixed with the housing affordability advantage is the benefit of having a higher average household income in Ajax in comparison to the Region and Province Strong Regional Energy Sector The Region of Durham has targeted the energy sector for strategic growth. Key energy assets are in place, most notably the Ontario Power Generation s Darlington & Pickering nuclear energy power plants. In addition, there are companies in the region that provide innovative manufactured goods, including Siemens Canada, and services such as utilities distribution (ex. Veridian Corporation). The energy sector also has a support network that includes the University of Ontario Institute of Technology with is energy systems engineering program and the Durham Strategic Energy Alliance, a non-profit organization that is advancing energy initiatives in the region Good Quality of Life Many of the participants in the stakeholder interviews, focus groups and on-line survey stated that a major strength of the Town is the good quality of life that it offers residents. The good quality of life was in reference to the many recreational facilities, the publicly owned waterfront trail and the walking/cycling trail network through the town Good Range of Tourism Assets Based on the input received during the consultation process Ajax was considered to have a broad range of tourism assets on which to further develop its tourism sector potential. This includes its waterfront, Greenwood Conservation Area, trails and parks and recreation facilities. Events, particularly those that use the waterfront such as the Taste of Ajax, Celebrate Ajax by the Lake, Waterfront Games, etc., attracted local residents, as well as visitors from beyond the community. This in turn contributes to positive image for Ajax. Other events such as the jazz festival in Pickering Village were also seen as adding to the overall quality of life of the community with the potential to attract visitors. Ajax boasts approximately 600 hectares of parks and natural areas, and has an extensive trail system (linking the waterfront with Millers Creek and Duffins Creek). This is a key asset for both residents and visitors alike. Many stakeholders mentioned that the existence of various meeting facilities such as the Ajax Convention Centre, golf and country clubs, and larger restaurants was a positive feature attracting local users and those from outside the community Serviced, Shovel-ready Employment Land Business and community stakeholders stated repeatedly that a key strength for the Town is availability of municipally serviced (i.e. water and sewer lines) employment lands. The Town has invested heavily into servicing the employment areas and making them ready for development. This is an advantage and strength for businesses that are considering expansion. The Audley Road Business area and Carruthers Creek Business Park offers a large concentration of vacant employment land with the potential for campus style development. These areas are accessible to Highway 401 via the Salem Road interchange. Specific to the Carruthers Creek Business Park is the opportunity for design-build and owning arrangements Presence of and Proximity to Post Secondary Education Institutions Ajax benefits from the proximity of two post-secondary institutions - The University of Ontario Institute of Technology (UOIT), Trent University satellite campus and Durham College. The UOIT offers a unique Town of Ajax Economic Development + Tourism Strategy 77 P age

78 energy systems, nuclear science and engineering program. The Trent University s satellite campus in Oshawa primarily offers courses in liberal arts. Durham College s School of Applied Sciences offers apprenticeships, skilled trades & technology programs and career development & continuing education programs. Ajax also benefits from being within commuting distance of other GTA post-secondary institutions. These university institutions include the University of Toronto and Ryerson University and college institutions include Centennial College, George Brown College and Seneca College Competitive Business Costs During consultations with the business community, it was suggested that Ajax has lower energy costs in comparison to other communities in the GTA. The low energy cost advantage is a strength to operating a business in Ajax. The employment land review identified that in Ajax there are lower leasing costs compared to the City of Toronto (i.e. Scarborough). This provides a lower cost alternative for a business that wants an eastern GTA presence. A review of BMA Management Consultants` Municipal Study 2009 also confirms that the development charges on a per square foot basis for non-residential development (i.e. commercial and industrial) is lower than the average. In addition, water and sewer costs are lower than the average. However, this study identified that the tax burden for commercial properties (i.e. office, hotel, shopping centre) was in the high range for office and mid range for other commercial uses. This study also identified that the tax burden for industrial properties was in the high range. These findings suggest that there is no cost advantage in terms of accessing municipal services Accessibility to 400 Series Highways Highway 401 passes through the centre of Ajax. This multi-lane highway corridor makes the Town very accessible to the Greater Toronto Area and eastern Ontario markets. The Highway 407 planned extension from Brock Road in Pickering to Highway 35/115 and the highway link to Highway 401 to the east of the Town will improve the accessibility of Ajax. These transportation network improvements will be an advantage for businesses that rely on transportation routes for the movement of goods and services. 5.2 Weaknesses While the previous section outlined the strengths on which to base economic growth, this does not necessarily ensure that a community is ready or able to capitalize on these opportunities. The following sets out some of the weaknesses or competitive disadvantages that may be constraining Ajax Lack of a Common Community Vision The limited involvement of the business community in the future of the Town is seen as compromising its economic growth potential. More opportunities for feedback, dialogue and partnerships are needed to achieve a community vision that can act as a rallying point for business and residents. Many of the focus group participants have good intentions for improving the Town, but it needs to lead on more effective communication and engagement with the stakeholders Bedroom Community Mentality Many residents spend their day commuting to and from points outside of Ajax, so that when they return home there is little time to support local community organizations, events and activities. In turn, these Town of Ajax Economic Development + Tourism Strategy 78 P age

79 organizations, events and activities are not able to develop the audience base and following that might enable them to develop their product and thus appeal to a market outside of the community Transportation Infrastructure Although Highway 401 travels through the centre of Ajax, representatives from the business community stated that traffic congestion along this highway is an ongoing concern for them. Traffic congestion is a problem during the morning commute westward and afternoon commute eastward. While Ajax has several significant employment areas, there are many instances where there is a lack of, or infrequent, public transit servicing these areas. Added to this lack of public transit, is the poor public transit connections between the city of Toronto and Durham region. Essentially, employment areas are largely inaccessible for that portion of the labour force reliant on public transit. Another weakness in the transportation infrastructure was the absence of an international airport in the eastern end of the GTA. Companies that have staff travelling out of the area or have business travellers coming to their offices have to travel across the GTA. Although the Greater Toronto Airport Authority s intention to expand into Pickering holds promise, the lack of federal government announcements suggests a lack of urgency to develop the Pickering Airport lands Lack of a Unique Identity or Brand Many business and community stakeholders that were consulted suggested that they had difficulty defining Ajax s identity within the Greater Toronto Area marketplace. Common rhetorical questions asked by these stakeholders were: What is Ajax known for? or How is Ajax different than any other bedroom community? This lack of an identity hampers Ajax s marketing message among the GTA municipalities. While the Town has waterfront and historical areas they have not been able to capitalize on it. Despite the lack of uniqueness, the Town has successfully attracted residential and retail/commercial development activity No Tourism Brand Many stakeholders felt that Ajax did not have a strong tourism brand or identity making it difficult to attract visitors to the community. There was recognition however, that the brand may have to be Durham and that perhaps there should be greater effort given to working with Tourism Durham in the marketing and promotion of Ajax s tourism assets Lack of a Vibrant Downtown Ajax lacks a vibrant downtown that can serve as an attraction or destination for either residents or visitors to the community. In Downtown Ajax, businesses are set back from a street (i.e. Harwood Avenue), front onto a public parking lot and occupy single-storey, small, condominium-style floor plates. The image and appearance of the Downtown is also a weakness, as identified in the Downtown Community Improvement Plan Pickering Village not Positioned as a Destination Many business and community stakeholders stated that Pickering Village has great potential, but it is not effectively capitalizing on the opportunities associated with having a heritage village in the community. The area does not draw people from the Greater Toronto Area. Instead, this area is filled with local population-related goods and services businesses. Town of Ajax Economic Development + Tourism Strategy 79 P age

80 5.2.8 Failure to Leverage Regional Assets The municipality has not capitalized on the significant number of regional assets that could aid in generating local investment interest and economic growth including the presence of two secondary institutions, the Business Advisory Centre of Durham and Oshawa Airport. To suggest that there needs to be an Ajax only asset is perceived by many of the stakeholders as wasteful, expensive and an inefficient use of resources Lack of Local Business Amenities There are few places in Ajax where business owners can meet for presentations, seminars or training with the largest venue in the Town being the Ajax Convention Centre and Hilton Garden Inn at Salem Road and Highway 401. The lack of meeting spaces makes the area a less attractive location for businesses looking to expand. Business stakeholders stated the absence of meeting space as being a weakness to operating their business in the Town Lack of Recognition that Manufacturing is Playing at a Global Level Many manufacturers raised the concern that there seems to be a lack of appreciation that competition for products and services is playing out at a global level. There needs to be more coordination and collaboration between the municipality, the Region, and upper levels of government to ensure that the manufacturing sector survives and thrives in the future. 5.3 Opportunities External factors can also play a significant role in determining the possibilities for an economic development and tourism strategy. This can include structural changes in the broader economy, shifts in demographics and technological changes, etc. The following summarises some of the major factors that were identified as influencing the outcome of the economic development and tourism strategy Target Investment Attraction Efforts While the Town has invested in the servicing of its employment areas, investment attraction will need to be targeted at key industries and strategic. This includes consideration of business expansion opportunities that may be occurring throughout Ajax and the region and the differing roles that each employment area may play. The older employment areas of Notion Road, Church Street and the Westney Road and Bayly Street Area present unique opportunities that are different than the employment areas along Harwood Avenue, north of Kingston Road and in the Audley Road area. In the older employment areas, businesses may be attracted to these areas if they require outdoor storage or low cost leasing arrangements. The newer employment areas to the north and east of Ajax present their own unique opportunities. Much of the development has occurred over the previous decade. Atlas Logistics, the Hilton Garden Inn and Ajax Convention Centre, Higgins development and OLG Slots at Ajax Downs are assets for the area. There is potential to attract further wholesale and distribution and recreation businesses and new office development to this area Ensure that Small Businesses are Sustainable With such a large percentage of local businesses comprising less than 10 employees more should be done to support their long term sustainability and growth. While economic development staff are seen as effective in the dealing with local business more effort needs to given to identifying what types of business are here, what their needs are and how the Town and its economic development partners can support them. Town of Ajax Economic Development + Tourism Strategy 80 P age

81 5.3.3 Promote Green Initiatives in the Town s Older Industrial Areas Many of the Town`s older employment areas are comprised of older properties that lack many of the location requirements of today`s industry. As a way to revitalize these areas, consideration should be given to partnering with the private sector to enable the greening of these older industrial sites thereby making them more attractive for business investment. This could include green roof top programs, free energy audits, or incentives to upgrade or green older buildings and facilities. The development of a Steam Plant Co-generation facility in South Ajax area is also seen as a prime opportunity to develop a reliable source of green energy that may attract a high energy user or potential contributor to co-generation to the community while at the same time raising the community`s profile as a green and sustainable community Attract Knowledge-Based Employment The business community stakeholders stated repeatedly that there are many talented and knowledgeable people working in Toronto, but living in Ajax. An opportunity for the Town is to entice major employers in Toronto to develop alternative east-end or Ajax locations to a downtown office. This opportunity would need to be presented to the employers as lessening the commute time for staff and improving productivity overall Leverage the Local Cultural Diversity There is significant cultural diversity in Ajax. A key opportunity is leveraging this cultural diversity to attract business investment from new Canadians and visible minorities. The Town should identify opportunities to connect with its different cultural communities as well as newcomers to the Town through business seminars, workshops and skills training Create Stronger Linkages with Post Secondary Institutions Many towns and cities across the province have been successful in attracting post secondary institutions to their community as way to ensure that their youth have the option to pursue higher education at a local facility. Retaining youth is also a means to provide business and industry with an available well educated and trained workforce for the future. The Town should create the support network that encourages Ajax businesses to benefit from the engineering and business programs at not only the UOIT and Durham College, but also Ryerson University, University of Toronto, Seneca College, Centennial College and George Brown College. The Town should also focus on developing relationships with the researchers and the business development officers at the UOIT who are involved in the commercialization process in order to make Ajax a top-of-mind location for business expansion in the target sectors Develop Downtown Ajax into a Civic and Business Centre Downtown Ajax already serves as the Town s civic centre. The recent Town Hall expansion has created a larger, more centralized function for delivering municipal administrative services and is the location for the Town s central library facility. The Town is also a stakeholder and investor in Downtown Ajax with its recent acquisition of several properties in the core. Business and community stakeholders contacted during the consultation process felt that the Downtown needs to be rethought and revitalized in order to provide for more of a destination and community core for the town. While the fractured property ownership has been a barrier to developing the Downtown into a vibrant centre that would attract people to live, work and shop, there is considerable local appetite to create a place that functions more cohesively and provides a more unique destination for the residents and visitors. Town of Ajax Economic Development + Tourism Strategy 81 P age

82 5.3.8 Position Pickering Village as a Cultural Destination Pickering Village has potential to develop as a cultural hub. The St. Francis de Sales Centre is a unique asset to Pickering Village. This heritage building provides an opportunity for the Town to create a place where local and regional people travel to for an experience or event not offered elsewhere in the Greater Toronto Area. While the area has heritage buildings which should be protected, the cost of maintaining these buildings can be costly. A more aggressive incentive or tax rebate program may entice building owners to improve the architectural and design characteristics of the area. The incentive program could advance the facade improvements and heritage property maintenance initiatives. The Town has an opportunity to develop tourism/visitor experiences in this area that are distinctive from other downtowns in the Greater Toronto Area (e.g. Unionville in Markham) Develop Ajax s Tourism Product Offering While the Town of Ajax is already very active on a number of fronts related to tourism development and promotion (e.g. waterfront development, CIP for Pickering village and the Integrated Community Arts and Culture Plan etc.), there are opportunities to develop additional tourism product that would aid in these efforts. Specific sectors that are of greatest potential are cultural tourism, culinary tourism, eco-tourism, sports tourism, events tourism, and historical tourism. These sectors all represent areas where: a) there is high or growing market demand for this kind of tourism, and b) Ajax has competitive resources relative to other communities. The table below illustrates this demand (market) / supply (product)match for these sectors. Sector Demand Parameters Supply: Ajax Competitive Advantages Cultural Tourism - with aging population, there is increasing interest in cultural and historical activities and resources - efforts of community to date in developing Pickering Village as cultural hub - future development of downtown (which will consider cultural activities and events) Historical Tourism - see above - World War II history of community - opportunity to expand, further develop museum - name (brand image) of community as story to tell Culinary Tourism (tourist experiences built around fine food and drink consumption) - current and growing interest in organic foods & restaurants, locally-grown foods, ethnic cuisine, non-chain operations - diverse base of small, family-run restaurants - expected growth in restaurant base in future - easy access to farms and rural areas Eco-Tourism - growing interest in and concern for the - waterfront Town of Ajax Economic Development + Tourism Strategy 82 P age

83 Sports Tourism Events Tourism environment - organized sports tournaments and events are growing - with influx of young families, teens, there is a growing home base of youth involved in organized and team sports in Ajax - special events can draw upon the entire GTA marketplace who will increasingly be looking for short getaways close to home (especially in times of economic downturn or stagnation) - special events can provide such opportunities - access to green space - sports facilities in community and region overall - base of supply facilities (hotels, restaurants, etc.) - central location; quick highway access - lower cost that other potential stayovers - events that can draw on the competitive advantages of Ajax (see above) have potential in this regard - some track record of success that can be built upon Pursuing these opportunities could involve the creation of new interest groups and ad hoc working committees that could help to assess and implement specific initiatives. (This is subsequently discussed.) Capitalize on Emerging Culinary Tourism Market Research suggests that Ajax has a strong base of eating, drinking and specialty food establishments including a range of small and ethnically diverse restaurants. Also recognized is the base of chain and franchise establishments in Town that have strong market loyalty and draw. As population growth implies the development of even more eating establishments in future, it is likely that the diversity of dining and culinary experiences will only grow. The Celebrate Ajax event has potential to develop into a bigger event. Ajax needs to reposition and rebrand the Celebrate Ajax and specifically the Taste of Ajax portion of this event over time. Many interviewees saw significant potential in this regard; culinary tourism was one of the top-ranked tourism sub-sectors in the tourism focus group. Provincially, over the next decade, this is seen to be one of the fastest-growing tourism sectors Create a Unique Marketing Message The Town of Ajax s marketing message as a viable centre for business expansion is lost in the competitive environment of the GTA. Ajax needs to leverage regional efforts to position Durham Region as a centre for sustainable energy and technology-based manufacturing and demonstrate the unique elements of the community. With this economic development marketing context in mind, the Town has an opportunity to develop a unique role in fostering business and entrepreneurial growth in select target sectors. 5.4 Threats The obvious measure of success for any economic development and tourism strategy will be how well a jurisdiction capitalizes on its opportunities in order to drive economic prosperity. Equally important Town of Ajax Economic Development + Tourism Strategy 83 P age

84 however, is how they address or manage the internal and external threats that may keep it from achieving their vision of a progressive and healthy community. The following discussion lays out the key threats facing the Town of Ajax in effectively implementing an economic development and tourism strategy Resistance to Change A common frustration in the business community is business or property owners resistance to change for the benefit of the whole community. An example that was used repeatedly was Downtown Ajax. This area has developed into its current state because of a lack of a coordinated vision. Business owners are not seeing the big picture of Ajax and this mindset is threatening further development and investment opportunity No Incentive for Landowners to sell Employment Lands The business community is not fully aware that much of the available employment lands in Ajax are owned by only three developers. These developers are not as motivated to sell large tracts of employment lands as the Town. This lack of motivation can potentially limit the development potential of the lands along Harwood Avenue, north of Kingston Road and east on Audley Road. The Town may have to initiate options to entice development on these lands Decline of Manufacturing Sector Canada s manufacturing sector has seen experienced significant restructuring over the previous decade and the job losses that have resulted are not likely to be recovered in Canada. While still a significant component of the provincial economy, manufacturing employment will no longer comprise the levels it used to have in Canada or Ontario. In the future, manufacturers will need to be innovative and integrate advanced technology-based processes in their operations. This will result in fewer employers being needed to staff or operate facilities Inadequate Business Tools for the Knowledge Based Workforce Business mentoring, networking and innovation centres are located in the nearby cities of Toronto, Mississauga and Markham. Notable innovation centres include the MaRS Centre (Toronto) Research Innovation Commercialization (Mississauga) Centre and Innovation Synergy Centre (Markham). Talented and highly specialized people are drawn to these centres. The absence of such an innovative centre in Ajax or Durham region makes attracting and expanding the knowledge-based workforce more difficult Strong Competition for Tourism Dollars Most respondents were keenly aware of competition for tourists from surrounding municipalities. One respondent suggested two zones of competition : one being the major primary destination attractions in Toronto (downtown and elsewhere) and the second being elsewhere in Durham Region, where there tend to be more and bigger types of visitor attractions than what Ajax has to offer (more shopping, more and bigger hotels, more restaurants, etc.). Town of Ajax Economic Development + Tourism Strategy 84 P age

85 6 Framing the Economic Development Strategy The Town of Ajax has seen rapid population growth in recent years due in part to its location on the eastern side of the GTA. The benefits of having one of the most affordable housing markets in the Greater Toronto Area and proximity to Toronto has driven much of this population growth. However, the expectations that the community would realize economic opportunities in terms of related employment growth and business investment have not been achieved. Coupled with these observations, is the fact that both the global and provincial economies are changing - rapidly and irreversibly. The decline of manufacturing in leading industrialized economies, the aging of the baby boom generation, the dramatic increase in immigration and its implications for Canada s workforce, the rise of a highly mobile knowledge-based workforce all of these new realities hold the potential to shape and challenge Ajax opportunities for future growth. For the Town to embark on an economic development and tourism strategy at this time, requires a fresh approach. While the traditional models of investment attraction INDUSTRIAL RECRUITMENT + SITES = JOBS remain viable, Ajax is well positioned to benefit from the economic development and tourism approach of larger jurisdictions (i.e. Region of Durham) and better capitalize on the strengths and talent of its workforce and the unique community assets that contribute to the Town s quality of life experience of its residents. This new approach puts INNOVATION + TALENT + QUALITY OF PLACE at the forefront of economic development programming for communities determined to attract high value, sustainable employment and investment. By taking this approach, the Town will be able to better position and market itself as progressive and responsive to both the demands of the marketplace and ultimately its residents those that live in the community now and those that will come in the future. 6.1 Current Policy Framework Having established the need for a framework for the delivery of economic development and tourism services there are a number of Town-lead initiatives that also serve to impact and shape the direction for economic development and tourism activity in the community. These include: Town of Ajax Strategic Plan and Community Vision (2007) Central Ajax Employment Area Land Use Compatibility Study, SWOT Analysis and Planning Report Preferred Strategy (2008) Town of Ajax Employment Lands Strategy (2010) Integrated Community Arts and Cultural Plan (2006) Downtown Ajax Community Improvement Plan (2005) Pickering Village Land Use Planning and Urban Design Study (2007) Ajax Commercial Policy Review and Land Needs Assessment (2009) These policy initiatives are further reviewed in Appendix I. The Region of Durham has also completed recent economic development and tourism projects that will influence the delivery of services for the Town. Recent projects include: Advanced Manufacturing Cluster Study (2007) A Strategy to Develop the Tourism Industry in Durham Region (2006) On the City s Edge Creative Economy Strategy for Durham Region (2009) Town of Ajax Economic Development + Tourism Strategy 85 P age

86 Given the long term perspective that emerges with much of this work, many of the findings and direction provided by these studies remains relevant to the development of a new economic development and tourism strategy for the Town of Ajax and are consistent with the priorities identified during the project s consultation process. The following discussion summarizes several key initiatives thought to be most relevant to Ajax s strategy development Town of Ajax Strategic Plan and Community Vision The plan is based on the Town s commitment to provide residents with effective service and cost-effective programs. The guiding principles that influence economic development include: Strong sense of community a key strategy includes developing stronger working relationships with stakeholders/ service providers and stimulating joint initiatives. Managing growth key strategies include: o Ensuring sufficient lands are designated and maintained for employment purposes o Ensuring the highest priority is given to providing employment opportunities o Actively participating in the Highway 407 East EA project o Facilitating on-going discussions with Durham Regional transit, GO Transit and Metrolinx to ensure the transit level of service is enhanced. Environmental awareness a key strategy includes the waterfront as a primary cultural and natural landscape for arts by showcasing new events and festivals. Economic prosperity key strategies include: o Partnering with landowners, developers and the brokerage community to promote and market the Town s employment lands o Developing the transportation and servicing infrastructure for the Town s new employment areas to ensure they meet the needs of new businesses o Marketing the Village to promote its historic status and strengthening public awareness o Encouraging entrepreneurship and small business development o Implementing Downtown revitalization initiatives o Promoting the Salem Centre Business Area as a business gateway o Promoting Ajax as a convention and accommodation destination in Durham Region o Continuing to work collaboratively with Town departments and the Region of Durham. The Strategic Plan s emphasis on developing stronger working relationships with stakeholders, managing growth on employment lands, enhancing transit service, enhancing the waterfront, implementing Downtown Ajax and Pickering Village initiatives, encouraging small business growth and developing the conventions market are major considerations for the economic development and tourism strategy Ajax Integrated Community Arts and Cultural Plan This plan has six goal statements: 1. Increase and enhance the variety and diversity of creative cultural experiences and programs. 2. Provide and develop places and spaces for cultural and artistic activities throughout the community. 3. Improve communication and information resources to better market arts, culture and heritage in Ajax. 4. Strengthen alliances and partnerships for effective growth and development in order to facilitate greater community capacity building. 5. Support a climate where the arts, cultural heritage community can flourish through economic investment and cultural renewal. Town of Ajax Economic Development + Tourism Strategy 86 P age

87 6. Create an environment that encourages a thriving artistic and cultural community. The plan provides many recommendations to help achieve the goals. Key recommendations include: Establishing the waterfront as a primary cultural and natural landscape for arts by showcasing new events and festivals; Branding creative culture as a valuable resource and assist arts organizations to promote the branded message; Developing partnerships between the private and non-profit sectors and other levels of government to foster cultural opportunities through program development, tourism attractions and events and renovated/new cultural facilities; and Including arts, culture and heritage related organizations, institutions and enterprises in business attraction and retention efforts. This plan reinforces the importance of culture and the creative economy as a key consideration in the economic development and tourism strategy and reinforces the idea that Ajax s cultural and heritage assets must be preserved and promoted beyond the local community Pickering Village Land Use Planning and Urban Design Study This study reinforces the need to transform Pickering Village into a heritage district. In this regard the study recommends that Pickering Village become an area where: Heritage resources are proudly restored and celebrated There is a focus on cultural activities that support the residents of Ajax and Durham Region Old Kingston Road becomes a vibrant, thriving, beautiful pedestrian oriented street Streetscapes and sidewalks are attractive and inviting to pedestrians Natural features are protected and enhanced and Cyclists feel welcome and can safely travel on streets with links to off-street paths. Some of the key action items that will stimulate improvement in Pickering Village include: Improving the Town-owned facilities surrounding Memorial park as an arts and cultural hub Changing zoning to promote more retail and medium/high-density, mixed use development Developing a property tax rebate grant program Establishing a heritage conservation district Developing incentives programs to promote development. Both the private and public sector will need to invest in the district for it to improve. The Town s strategy must address an appropriate role for the Town and incentives for the public sector to assist in the preservation and development of this area of the town A Strategy to Develop the Tourism Industry in Durham Region This document outlines a series of recommendations for the Region of Durham based upon the province s premier ranked tourism approach. The intention of the plan was articulated as follows: The Region of Durham and its partners will work together to increase the time that same day visitors spend in the Region, increase the number of overnight visits, and generate increased spending and resulting economic activity by providing visitors with new and compelling reasons to visit Durham Town of Ajax Economic Development + Tourism Strategy 87 P age

88 Region. Efforts will also focus on diversifying the visitor party profile to include more families. To achieve these goals, five strategic priorities will be addressed in the next five years, 2006 to 2011 as outlined below. 1. Invest into the strategic development of new and expanded tourism products/services; 2. Facilitate effective communication of regional tourism products/services to highest potential target markets; 3. Support and foster intraregional tourism networks; 4. Continue to generate presence and partnering with appropriate partners outside the region; and 5. Inform, educate and engage municipal politicians and staff on the benefits of and impact of tourism in Durham Region On the City s Edge Creative Economy Strategy for Durham Region, 2009 This project was undertaken by the Region of Durham s tourism department and had three primary objectives: 1. To define the creative economy in Durham Region qualitatively and quantitatively; 2. To develop an inventory of opportunities and challenges (which are opportunities for improvements to be made); and 3. To develop a plan of action for Durham Region. Key findings include the fact that: Durham Region has slightly fewer creative economy workers than the Ontario average (33.1% for the Region compared to 34.7% for the province overall); and 14.4% of all business establishments in Durham Region are in creative industries; mirroring the provincial performance overall. In the identification of opportunities and the development of an action plan, there were certain strategies and initiatives suggested for local area municipalities and stakeholders. These were: 1. Develop and maintain up-to-date business directories for the community; 2. Undertake annual surveys of creative economy establishments; 3. Update economic development and related strategies to take into account the needs of creative economy businesses; 4. Work with planning departments to bring creative economy concerns into the land use planning process; 5. Undertake cultural and creative community mapping exercises to identify creative places and spaces; use these to actively promote arts and culture activities in the community; 6. Develop and implement economic development and branding strategies to promote place branding; 7. Develop web tools to attract creative economy business investment; 8. Develop human resources and skills map of the local population, to be used in business attraction and retention efforts 6.2 Ongoing Economic Development Programming Initiatives Presently the Town of Ajax s Economic Development Office is focused on four key areas as part of its economic development programming efforts: Town of Ajax Economic Development + Tourism Strategy 88 P age

89 Business Development - The business development function includes generating attraction and expansion leads, proactively building relationships with local business owners across industries, participating in trade shows, attracting events and conferences and securing filming production in Ajax. Marketing - The marketing function has focused on corporate-wide branding and public relations. There has been some targeted advertising to local entrepreneurs to consider working from home or within Ajax. Real Estate - The real estate function includes managing the disposition of Town owned lands and acquisition of strategic properties. Business Outreach - Business outreach involves contributing to regional economic development initiatives and attending/ hosting conferences. Each of these program areas support the Town`s strategic principle of economic prosperity and are intended to implement the broad strategies as articulated in the community strategic plan. While the proposed economic development and tourism strategy reflects this current range of programming, the intent is to better or more competitively position the Town to capitalize on a broader range of economic development and tourism opportunities that will yield long term sustainable results for the community. At present the Town of Ajax is not formally involved in tourism product development or marketing (although it should be recognized that many of the Town s initiatives regarding improvement of the waterfront or of Pickering Village have clear tourism-related benefits). Given our understanding regarding the allocation of responsibility for tourism development and local marketing, it is assumed that the primary responsibility for tourism development initiatives would fall within the purview of the Economic Development Office of the Planning and Development Services Department. Other municipal departments will also be involved, such as the Recreation and Culture Department and the Operations and Environmental Services Department (as appropriate). There will need to be more collaboration between Economic Development, Recreation and Culture and Operations departments for tourism development. An internal tourism task force lead by Economic Development and including the departments mentioned can be established to outline specific responsibilities for each department and how all departments will work together on asset development, marketing, visitor attraction and events. This is appropriate insofar as the primary responsibility of the Town in tourism is on the development side a rather than the marketing side. It is the Region s primary responsibility, through Tourism Durham, to promote the entire area, while it is the municipality s primary responsibility to develop the tourism product (or create the sorts of favourable circumstances where the private sector can develop the tourism product). Accordingly, the skills sets involved in this area are those aligned with economic development overall: analysis and assessment of opportunities; dealing with potential investors; providing business case information; liaising with other municipal departments; bringing various parties together to brainstorm opportunities; etc. 6.3 Emergence of Key Themes An economic development and tourism strategy, to be successful, must focus on exploiting the competitive strengths or advantages of a community. Based on an understanding of the findings from the economic base analysis, the results of an extensive community consultation process and the existing policy environment for the Town of Ajax, several key themes emerged around which to frame an Economic Development and Tourism Strategy. Town of Ajax Economic Development + Tourism Strategy 89 P age

90 These key themes are: Target Strategic Growth to Ensure Economic Sustainability o Capturing knowledge/technology based and business services employment o Highlighting competitive business costs o Targeted business retention and expansion efforts o Making employment areas more accessible to a regional labour force Leverage Regional Opportunities and Assets o Attracting energy-related employment opportunities o Creating stronger linkages between the Town, local businesses and post-secondary institutions such as UOIT, Trent University, Durham College and other GTA institutions o Building on the Region s creative economy and creative industries initiative Strengthen Local Business Community o Supporting business start-ups and entrepreneurs o Considering alternative work space opportunities o Creating regular opportunities to engage with local businesses o Using the Town s cultural diversity to expand and attract local employment opportunities Create Places that Attract Investment and Interest o Implementing a vision for the downtown where people can work, live and shop o Branding and investing in Pickering Village as a key cultural and tourism destination o Positioning the waterfront as a focal point for trail and recreation attractions, festivals and events and water-based activity Reflect a Growing Creative Culture o Profiling existing cluster of independent artists, writers and musicians as well as creative business establishments o Supporting new cultural enterprises to locate and expand o Hosting a wide range of local and regional cultural activities Broaden Marketing and Promotional Efforts o Highlighting the uniqueness of the Town as a location for investment and entrepreneurship o Reflecting cultural diversity in marketing and promotional efforts o Creating an investment profile that demonstrates the commitment of the community to the goal of sustainable growth o Aggressively promoting Town s employment areas With a focus on enhancing existing economic development programming and activities in order to deliver on the promise of future economic growth and lay a foundation for greater support to the entrepreneurial and creative economies, it is essential that the Town and by extension Economic Development has the right tools and resources in place to support business and industrial investment in the town of Ajax. The justification for this framework and goal setting that will underpin the economic development and tourism strategy are discussed below. Town of Ajax Economic Development + Tourism Strategy 90 P age

91 6.3.1 Target Strategic Growth to Ensure Economic Sustainability An analysis of Ajax s economy reveals several key sectors where there is a high labour force or business concentration suggesting a local competitive advantage for this form of investment and economic growth. The needs of these sectors and the businesses they comprise will vary making it important that the Town engage with the companies in these sectors to better understand how to assist and grow their businesses locally. This will include becoming better informed of the individual and sector based supply chain opportunities that will enable growth and inform investment attraction efforts. With as much as 80% of all new business investment being derived from existing business within any given community, this effort includes effective and targeted business retention and expansion programming, as well as regional and international investment attraction efforts. The Business and Information Technology Services Sector should be a primary target sector opportunity for the Town of Ajax. These knowledge-based workers and associated businesses and entrepreneurs represent a key component of the Town s and the Region s creative economy. With the range of skills in evidence in the local labour force including the number of creative workers, Ajax is in a strong position to attract business investment that would seek to recruit this element of the workforce in the future. Ajax has a large inventory of municipally serviced employment lands, most of which is privately owned. While some of the lands are highly marketable given their accessibility to Highway 401 and the future Highway 407 extension, many of these landowners are not motivated to sell their lands at this time which will limit the Town s efforts at investment attraction. While it is anticipated that the lands will develop for employment uses over the long term, it does require that the Town give consideration to the options for the redevelopment of older employment areas over the short to midterm. This requires the Town to promote the established employment areas for infilling and intensified use. The Steam Plant Co-generation facility was mentioned repeatedly during the consultation process. Located in the Central Ajax employment area, this Steam Plant has the potential to serve as a district energy hub and generate interest from businesses that are large energy users. While the Manufacturing sector has contracted across the province, it remains one of the largest industry segments in the town with more than 6,000 people employed across a broad range of industry subsectors both in and outside of Ajax. Manufacturing is expected to remain an important part of the local and regional economy with an emphasis on advanced and technology based manufacturing operations. To ensure that Ajax technology-based manufacturers continue to succeed the Town needs to provide enhanced business support to enable the emergence of new niche and export markets including an understanding of how the Green Energy Act could impact their manufacturing operations. The opportunities associated with a Steam Plant Co-generation facility may also provide a significant competitive edge for the Town. Like Manufacturing, the Wholesale Trade sector has suffered with the recent economic downturn. However, it is expected to make a recovery in 2010 as the economy improves and consumer confidence returns. The Town s transportation infrastructure, location in the GTA, competitive business costs and continued population growth contribute to an environment that is attractive to companies in the wholesale trade sector. All of the targeted growth into employment areas requires a supportive and accessible public transit infrastructure. Stakeholders repeatedly mentioned the poor public transit service throughout the Town of Ajax Economic Development + Tourism Strategy 91 P age

92 town. People will need improved public transit service in the town and specifically through employment areas to access job opportunities. In delivering on this opportunity the strategy has established the following goal: GOAL 1: The Town of Ajax will be strategic in its approach to economic growth by engaging with the development community, business, regional stakeholders and senior levels of government in the attraction of business and investment in its target sectors Leverage Regional Opportunities and Assets The Sustainable Energy and Technology Based Manufacturing Sector is a target sector opportunity for the Town of Ajax. This sector is also a target for the Region of Durham. Attracting and growing investment in the region s strong energy sector will require greater collaboration between the Town, local businesses, the Region of Durham as well as area post secondary institutions and industry associations. The emergence of Ontario s green economy and the impact of the province s Green Energy Act will also create opportunities to attract business and investment in this target sector. Renewable energy sources have already created opportunities for technology based manufacturers to develop products such as wind turbine blades and solar panels but opportunities exist among a wide range of industry sectors. The Town will need to ensure that local businesses also understand the potential associated with the Act. Stakeholders and focus group participants suggested that the Ajax business community has not fully capitalized on the presence of the University of Ontario Institute of Technology, Trent University satellite campus and Durham College, which are located in Oshawa. The region as a whole and Ajax in particular benefits from the presence of these institutions in that they provide the Region with access to a skilled workforce but also act as attractors to business and industry through their partnership efforts, the attraction of qualified researchers and support for entrepreneurs. Together these efforts contribute to the growing reputation of the Region for technology based or advanced manufacturing and provide opportunities for greater collaborative relationships between local business and post secondary institutions that could drive greater levels of innovation and commercialization among the town s SMEs. In addition to the post secondary institutions in Durham Region, there are a number of other institutions located in the GTA that should also be viewed and promoted as regional assets for Ajax businesses. These schools include the University of Toronto, Ryerson University, Seneca College, Centennial College and George Brown College. A further concern that emerged from the consultation effort was the lack of local business amenities and innovative networks that are provided in the larger centres of Markham, Toronto and Mississauga. Ajax in collaboration with its regional partners will need to consider how to offer a greater range of business tools and create innovative networks that differentiate this community from others in the Greater Toronto Area. Town of Ajax Economic Development + Tourism Strategy 92 P age

93 In delivering on this opportunity, the strategy has established the following goal: GOAL 2: The Town of Ajax will leverage regional assets and opportunities to advance targeted business investment, peer to peer networking and innovation within its local business community Strengthen Local Business Community Small and medium-sized enterprises (SMEs) play an increasingly significant role in driving economic growth in Canada. Whether located in urban, suburban or rural locations, they play an integral part of the local and national economy. Support for this element of a local economy also represents an opportunity to drive future economic growth. The Town of Ajax has seen a 24.2% increase in the number of businesses (reporting employees) over the last six years and a 19.9% increase in the number of self employed or start-up businesses. This suggests the presence of strong entrepreneurial activity. In 2009, 90.8% of all businesses establishments in the Town had less than 10 employees. In addition, all of the business establishment growth occurred from operations with less than 10 employees. Despite the high percentage of small and medium sized business operations, the need to provide additional support to these businesses emerged as a major theme throughout the public consultation process. There is a perceived lack of engagement with small business, lack of peer to peer networking opportunities, and a lack of understanding of how to tap into government programming and funding opportunities in order to grow their businesses. 'The planning approvals process was also identified as a issue for some small business owners in that it was felt to be too cumbersome and time consuming. Consideration should be given to formalizing a streamlined development approvals process for employment related projects and a developing a planning and building approvals guide for non-residential development. The on-line economic development survey reaffirms the importance of small business to Ajax. Three quarters (74.6%) of the respondents to the survey had 1-5 employees. In addition, three quarters (74.6%) had revenues less than $1 million and 70.7% were owner/sole proprietors. An interesting finding from the survey was that when asked for their level of satisfaction with the Town of Ajax as a place to operate a business, low cost facilities in which to start-up businesses received the lowest rating (4.20). In this survey, the availability of telecommunications services was regarded as the most important factor for businesses. This item received the highest rating (7.89) for level of importance for business in the next three years. Given the predominance of SMEs (small and medium-sized enterprises) in the community and the need to retain and grow these businesses in the future to ensure future economic growth, it is essential that the Town look for new and innovative ways with which to support and engage with its small business owners and entrepreneurs whether that be through the use of social media tools, alternative workspace options, the development of more sophisticated business tools or facilitating better cooperation with the region s post secondary institutions. Based on the feedback received through the consultation process there is an appetite to see the Downtown and the surrounding Town of Ajax Economic Development + Tourism Strategy 93 P age

94 older employment areas redeveloped and repositioned so as to attract small business and entrepreneurs to the community. One of Ajax s strongest assets in the development of its business community is its growing cultural diversity. Visible minorities have increased by 79.1% from 2001 to 2006 and now account for 35.6% (approximately 32,000) of the total population. With diversity and immigration playing a significant role in the economic growth of the province as a whole, the attraction and retention of a diverse workforce will become an essential consideration for economic development offices across the province. In this regard, the Town can take a lead role in developing local and regional partnerships with area business leaders and promoting the range of business and investment opportunities associated with an increasingly multi cultural community. In delivering on this opportunity the strategy has established the following goal: GOAL 3: The Town of Ajax will drive SME growth by cultivating an entrepreneurial culture and effectively supporting and engaging with our business and stakeholder community Create Places that Attract Investment and Interest Conventional wisdom would argue that if the jobs are available, the workers will follow, but the new economy doesn t often follow these rules. Because the demand for talented people outstrips supply, these highly skilled workers can essentially choose where to live and where to work. When it comes to choosing where to locate, knowledge workers have definite shopping lists, -- and cities and regions that seek to attract them do well to know what they want. Often this is in the form of vibrant downtowns, a strong arts and cultural community, and outdoor amenities and recreation opportunities. While the Town has been successful in attracting a diverse and talented workforce, due in part to its location in the GTA, it has not yet fully capitalized on this fact in a way that has resulted in heightened levels of business investment, increased visitors to the community, or a vibrant downtown. Despite this, Ajax has a number of significant opportunities to differentiate itself from other communities in the GTA in its attraction and retention of a skilled and talented workforce and new business investment. In creating places that will attract investment and interest in the Town, as well as providing focal point for community engagement and activity, there are three primary areas of the community that need timely investment in order to achieve a vision of the community that is vibrant and healthy the Downtown, the Ajax Waterfront and Pickering Village. Each could fulfil a different function in drawing investment and interest in the community. A primary concern raised throughout the consultation phase was that Downtown Ajax continues to be uninviting, fractured and lacking in any significant feature that would attract residents, visitors or business interest. Greater efforts are required to develop housing and commercial services and position the Downtown as a stronger business and administrative centre. While the Downtown Community Improvement Plan seeks to create an intensive, mixed-use, transit supportive, pedestrian friendly district that functions as a cultural and administrative centre, the long Town of Ajax Economic Development + Tourism Strategy 94 P age

95 term vision for the re-development of the downtown has not been effectively communicated and as a result is not well understood by the community. In addition to the downtown, the waterfront area was seen as a key community and tourism asset that could be further developed, enhanced and promoted. The extent of public access to the waterfront that was available to residents and visitors was seen as a significant competitive advantage over other GTA communities and needs to be maintained. Linking the waterfront with the Town`s existing and future trail system is also a key consideration in promoting the community as having a lifestyle that will appeal to active families and singles. (Commercial and retail activities on the waterfront that enhance public access and enjoyment to this area should also be considered e.g. bike rentals, food concessions, possibly boat rentals, etc.). As with the waterfront, interviews and focus group sessions consistently identified historic Pickering Village as a key community and tourism asset that needs to be better supported and leveraged in support of local cultural and tourism opportunities. The Village represents a unique opportunity to create a GTA destination experience that is similar to Unionville or Port Credit. In delivering on this opportunity the strategy has established the following goal: GOAL 4: The Town of Ajax will create `places` that attract investment and interest to the community and demonstrate the Town`s liveability and diverse range of arts and cultural experiences Reflect a Growing Creative Culture Many municipalities across North America have recognized the value that arts and cultural activities play in providing a high quality of life experience for residents which in turn can help to foster economic growth in the form of workforce retention and business attraction in a community. As noted in the Town`s recently completed Community Arts and Cultural Plan, investment in a creative community, enriched with arts and cultural experiences and expression provides four significant benefits - better health and well being of citizens; enhanced community identity and social cohesion; community revitalization and the redevelopment of urban centres; as well as positive economic effects. A 2009 report entitled ``On the City`s Edge: Connecting Creative Urban, Suburban and Rural Economies in Durham Region and the Mega Region``, explored the opportunities associated with the Region`s growing creative economy. A key component to this growth is the creative cultural industries, considered to be one of the fastest growing segments of the creative economy. The report also notes that almost a third of the existing workforce was currently employed in creative economy occupations, a figure that is mirrored in the Town of Ajax. Of this, the Town has a strong and growing cluster of independent artists, writers and musicians and a growing number of businesses focused in film, performing arts, publishing, web and software and photographic services. As the creative cultural economy is often a proxy for the level of entrepreneurship and innovation in a community, the Town should consider a wide range of opportunities to profile and promote its creative cultural industries as a key element of its marketing and promotional efforts. Town of Ajax Economic Development + Tourism Strategy 95 P age

96 In delivering on this opportunity the strategy has established the following goal: GOAL 5: The Town of Ajax will profile and promote the community`s creative industries as a key element of its economic and tourism development activities Broaden Marketing and Promotional Efforts A strong and effective marketing strategy is essential for ensuring that a community is delivering the right message to the right audience at the right time. While the Town has undertaken the challenge of branding the community, the Town must also ensure that it is positioned effectively and creating a reputation and profile that will attract the greatest interest from business and visitors that may be considering the Town as a location to do business, invest, live or visit. Marketing efforts geared only to target sector investment attraction efforts will not prove sustainable over the longer term. There needs to be a unique and bolder approach to get Ajax recognized among the marketing noise. Throughout the consultation process, the lack of community identity within the Region or the GTA was viewed as a key issue for the Town and an ongoing concern for business. Most notable too, was the observation by the real estate brokerage community that Ajax is considered to be at the most eastern fringe of the Greater Toronto Area and almost too far from the City of Toronto for some businesses. A more effective economic development marketing effort should be a priority for the Town. This lack of community identity should not come as a surprise, as it is an issue that many GTA communities struggle with particularly where population growth has outpaced employment growth. The impact of today s marketplace requires a renewed effort to reflect the aspirations and unique elements of the community, as well its potential for business investment and employment. This includes focusing on local business success, examples of small business growth and innovation, strategies for attracting ethnically diverse residents and entrepreneurs across the creative industries and a more concerted effort to promote Ajax s diversity to new Canadians. In delivering on this opportunity the strategy has established the following goal: GOAL 6: The Town of Ajax will broaden its marketing and promotion efforts to reflect the community`s aspirations, a commitment to sustainable growth and the potential for business investment and employment. Town of Ajax Economic Development + Tourism Strategy 96 P age

97 7 The Strategy 7.1 Setting the Vision In preparing the Town of Ajax Economic Development + Tourism Strategy we have built upon the VISION statement established in the Town of Ajax s Corporate Strategic Plan, as well as the guiding principle of economic prosperity wherein the Town will strive to create an environment which welcomes business, while supporting and nurturing those currently in the community. A key consideration in the development of an Economic Development and Tourism Strategy for the Town of Ajax is the anticipated evolution of economic development and tourism programming in the community as it strives to fulfil its potential as a sustainable and highly liveable community in the Greater Toronto Area. The resulting MANDATE for the Town of Ajax Economic Development Office is built around six broad goals that reflect the findings of this report, as well as the input received during the consultation phase of the strategy development. The GOALS and associated ACTIONS that follow are built around the town assuming more of a leadership role with respect to its future economic growth and a more effective approach to the development and implementation of sustainable economic development practices. Town of Ajax Economic Development + Tourism Strategy 97 P age

98 the vision Ajax s Strategic Plan and Community Vision sets out a guiding principle for achieving economic prosperity whereby The Town will strive to create an environment which welcomes new businesses, while supporting and nurturing those currently in the community. Achieving on this effort both now and in the future requires a strong economy and an economic development strategy that will help the Town strengthen its economic base. Building on this principle the VISION for the Town s Economic Development + Tourism Strategy is as follows: The Town will capitalize on its position within the Greater Toronto Area and utilize its strengths to the advantage of both business and residents and respond positively to the prospects of growth and by investing in needed infrastructure and focusing discussion and investment on innovative ideas that will ensure the Town is sustainable in every sense economically, environmentally and socially. The goals and actions that follow represent a commitment to the long term growth and prosperity of the community. Town of Ajax Economic Development + Tourism Strategy 98 P age

99 the mandate For the Town of Ajax to effectively position itself as an ideal location for business and entrepreneurship, a liveable community for families and professionals and a culturally rich and vibrant community to experience and explore, it is essential that an economic development and tourism strategy build on the talent of the workforce and local entrepreneurs, attract and retain knowledge-based employment, and seek to improve community infrastructure and assets. The six goals for the Town of Ajax Economic Development + Tourism Strategy are: 1. The Town of Ajax will be strategic in its approach to economic growth by engaging with the development community, business, regional stakeholders and senior levels of government in the attraction of business and investment in its target sectors. 2. The Town of Ajax will leverage regional assets and opportunities to advance targeted business investment, peer to peer networking and innovation within its local business community. 3. The Town of Ajax will drive SME growth by cultivating an entrepreneurial culture and effectively supporting and engaging with our business and stakeholder community. 4. The Town of Ajax will create `places` that attract investment and interest to the community and demonstrate the Town`s liveability and diverse range of arts and cultural experiences. 5. The Town of Ajax will profile and promote the community`s creative industries as a key element of its economic and tourism development activities. 6. The Town of Ajax will broaden its marketing and promotion efforts to reflect the community`s aspirations, a commitment to sustainable growth and the potential for business investment and employment. The associated actions that serve to implement on this vision for economic development are prioritized as high (1-3 years), medium (3-5 years) and low (5-10 years). It should be noted that that prioritization of these recommendations is intended to reflect a logical sequence of activities, with each action in the strategy contributing to a greater level of success as it relates to economic development and investment in the community. A more detailed implementation plan will be needed to address the budget, resources and more detailed timing of each action. Town of Ajax Economic Development + Tourism Strategy 99 P age

100 the goals + actions GOAL 1: The Town of Ajax will be strategic in its approach to economic growth by engaging with the development community, business, regional stakeholders and senior levels of government in the attraction of business and investment in its target sectors. The most important driver of new business growth will always be the expansion of existing local firms, either by organic growth or through the development of new ventures, products and services. It is for this reason that the Town must prioritize its economic development and tourism efforts to understand where this expansion or growth is likely to occur. The Town can then better support its businesses and ensure that expansions can take place within the Town whenever and wherever possible. Significant strides have been made by the Town to better engage with the broader business and real estate community. This effort needs to continue particularly as it relates to the Town s target sectors. Other local, regional, as well as provincial and federal government partners can support these sectors and the Town should continue to build relationships with these organizations to further develop local investment opportunities. Objective To attract investment to Ajax through improved program and service delivery. Actions 1. Ensure a business climate that is understandable, predictable, stable, timely and customer-driven. As part of ongoing efforts to ensure an effective and efficient approvals process, the Town should investigate the use of Development Permit Systems (DPS), which has been recently unveiled by the Ontario Ministry of Municipal Affairs and Housing. DPS allows a municipality to combine its Zoning Bylaw, Site Plan Control, and Minor Variance process into one document that effectively cuts approval timelines from 120 to 45 days. Consideration should be given to ongoing best practice efforts to enhance and improve the approvals process. In addition, consider a streamlined development approvals process for projects that advance the goals and objectives of the Town as it relates to development in the employment areas. As part of this effort the Town should communicate its intent to the development and brokerage community as a method of differentiating itself from other competitive communities. Role: partner Priority: high/ongoing Town of Ajax Economic Development + Tourism Strategy 100 P age

101 2. Enhance the Town s current Business Retention & Expansion function. A targeted corporate calling program will allow the economic development office to establish a more structured and richer relationship with the Town s top employers and key businesses in its target sectors. This will ensure that the Town is informed of the key issues and concerns of businesses, and working to support the growth and development of key sectors. Role: lead Priority: high 3. Implement a formalized, software-based corporate calling program. Given the competitive nature of business investment and attraction, the retention of local business is essential to future growth and investment. By implementing a software-based corporate calling program the Town is able to document a company s history, its customer markets and ongoing business relationships. It will also provide the Town with a detailed understanding of the strengths around which to build an effective and recognizable brand. Role: lead Priority: high Objective To attract investment into Ajax`s employment areas through an understanding of target sector business needs. Actions 1. Build value propositions focused on existing and emerging sectors: Business + Information Technology Services, Health Care Services, Wholesale Trade, Sustainable Energy and Technology Based Manufacturing and Tourism - build on a hub and spoke model to demonstrate Ajax s position in broader regional and GTA economy. Ajax has competitive advantages in each of these key sectors with the Town s affordability and accessibility to Toronto being important considerations in the development and expansion of these sectors. The Town needs to understand their competitive advantages in each sector and to build value propositions based on these advantages. From this understanding the Town should be developing marketing strategies and material to promote the growth and development of these sectors. Role: lead Priority: medium Town of Ajax Economic Development + Tourism Strategy 101 P age

102 2. Promote target sector investment for Ajax`s seven employment areas. Further to the previous action, the Town should be directing target sector investment to its seven employment areas. The Town has established employment land designations and flexibility in the permitted uses. With the five target sectors identified and locational requirements outlined, the Town is in a position to attract investment in the coming years. A primary consideration in this regard is the development of feature pages for each of the Town s employment areas that profiles the attributes of the business and industrial areas in the attraction of the Town s target sectors. Role: lead Priority: medium 3. Initiate a town-wide Community Improvement Plan that includes provisions for attracting investment to the Central Employment Area. Explore the use of tax increment financing (TIF) or tax increment equivalent grants (TIEG) with stakeholders as a way to spur the redevelopment of this employment area. With a large proportion of the properties in the Central Employment Area approaching obsolesce for many traditional industrial users, this area can be effectively integrated into the vision for the redevelopment of the Downtown and potential residential development in the vicinity of the Ajax Go Station. Incentives such as TIFs and TIEGs may be used to encourage the greening or upgrading of older industrial properties, improving accessibility of the area and stimulating employment growth in target sectors and encouraging incubator businesses and creative economy businesses to locate in this area. Community Improvement Plan provisions would also create mechanisms to fund improvements identified in the Central Employment Area Land Use Study. These improvements include sidewalks, streetscape, road connectivity/re-alignments, landscaping and urban design upgrades of buildings as redevelopment occurs. Role: partner Priority: medium 4. Continue to pursue the redevelopment of Ajax Steam Plant into a modern district energy facility as a way to spur the redevelopment of the Central Employment Area into more of a prestige employment area that is compatible with the vision for the Downtown. While the Steam Plant property already supports a number of area industries, its redevelopment represents a very positive and environmentally friendly alternative for local energy production and a significant competitive advantage for the Town over other eastern GTA locations in the attraction of investment to both Downtown and the Central Employment Area. Role: partner Town of Ajax Economic Development + Tourism Strategy 102 P age

103 Priority: medium 5. Assess the feasibility and marketability of developing an entertainment and recreation node on the employment lands located at Kingston Road and Audley Road. The heightened level of private sector interest in the development of a recreational and entertainment node on the employment lands at Kingston Road and Audley Road coupled with the presence of Ajax Downs and OLG Corporation s investment in Slots at this location suggests a long term opportunity to develop these employment lands for recreation, tourism, entertainment, commercial and employment activity. The Town should explore the viability and marketability of this concept with the landowners as well as broader private sector interests. Role: partner Priority: medium 6. Continue to enhance the existing inventory of industrial properties, integrating a broader range of online GIS capabilities to map and detail Ajax s industrial and commercial inventory. With its position on the eastern edge of the Toronto market, it is essential the Town utilize the widest range of services and tools to communicate the quality and availability of its serviced employment land. This includes providing the range of locational and property information that is demanded by the Toronto based ICI community, as well as ensuring that current information is available on the Select Ontario website. The recently launched site selection tool, the first in Canada provides a timely opportunity for the Town to profile its industrial and commercial inventory as well as its workforce capabilities. Role: lead Priority: medium 7. Continue to advocate for improvements to local and regional transportation and transit infrastructure, particularly as it relates to the Town s employment areas, Downtown and linkages to existing regional transit hubs and the City of Toronto. This will require that the Town maintain and report to the business community on ongoing discussions with Metrolinx, the Region and the Province on planned improvements to GO Transit and the timely extension of Highway 407 through Durham Region. Role: partner Priority: medium 8. Investigate the feasibility of developing a public parking garage in the GO Transit Node. Town of Ajax Economic Development + Tourism Strategy 103 P age

104 The Town is facilitating the development of a high density mixed use (i.e. employment and residential) area. This node has immediate access to GO Transit and Durham Region Transit. The mixed use centre includes services for commuters and enables opportunities to live and work in the area. To encourage office development in this node, the Town should investigate the feasibility of developing a public parking garage to service commuters and people working in the area. Role: partner Priority: medium Objective To heighten the quality of life for local residents by lessening commuting time and distance travelled to work. Actions 1. Initiate discussions with the Region of Durham to promote, educate and accelerate the adoption of telework initiatives as a way to stop the outflow of commuters from the region and heighten the quality of life for residents of Ajax and Durham Region. The concept of telework is based on a flexible work model that will assist communities and regions address skilled labour shortages that are likely to arise as our workforce ages. It is also an ecofriendly work model that allows communities and businesses to reduce their carbon footprint and enables businesses to become more sustainable. The high percentage of knowledge workers in Ajax and the surrounding region is conducive to this form of workplace initiative as many are willing to try new ways of working and doing business while at the same time bettering their community. Role: facilitate Priority: medium 2. Pursue opportunities to construct a telework facility in Ajax that will support local businesses and enable employees looking to work close to where they live to source local alternatives to traditional office and meeting space. With the high levels of out commuting coupled with the growth in small and medium sized business operations, alternative business and workspace options are ideally suited to communities like Ajax. SuiteWorks Inc. ( is an example of operations that provide virtual or private office space, meeting room, on-site business services, as well as state of the technology and multimedia capability and a location in Durham Region is already under consideration. Locate such a facility at a gateway location in the community such as the Salem Centre Business Area or on a site with equal visibility. Role: lead Priority: high Town of Ajax Economic Development + Tourism Strategy 104 P age

105 GOAL 2: The Town of Ajax will leverage regional assets and opportunities to advance targeted business investment, peer to peer networking and innovation within its local business community. Many of the assets required to stimulate and sustain long term growth in a community - post secondary education institutions, health care facilities, and a high quality workforce - are all available to the Town of Ajax. The fact that they are not physically located in the community is secondary. A workforce is mobile, educational institutions draw investment and interest from around the world and health care facilities provide research and care that benefits more than the immediate residents of a community. For this reason the Town must be more aggressive in leveraging these regional assets as a way to draw interest and investment, provide support to local business and entrepreneurs and draw a professional workforce that lives and works in Ajax. Objective To improve access to available business support services and facilitate the growth of local business and industry. Actions 1. Provide local business and industry with better information about the partnerships, programs and resources provided by the Ministry of Economic Development & Trade, UOIT and Durham College. As part of this effort, work with the Region of Durham to develop a regional on-line electronic gateway resource for business and industry to enable them to identify R+D resources, tax credit opportunities, relevant government programming, local supplier options etc. Role: partner Priority: medium 2. Elevate the Town s involvement in the Region s energy cluster by continuing to promote and attract related investment to Ajax. The DSEA has dramatically strengthened the capacity for investment within the Region s energy sector, and will serve as an ideal partner for facilitating that sector s presence in Ajax. Together with the research capacity of UOIT and the Town s commitment to sustainable growth, Ajax is in a strong position to develop a green branding strategy for the community. Ajax must seek opportunities to engage with the regional efforts, leverage its position in the energy cluster and attract investment in this sector. Town of Ajax Economic Development + Tourism Strategy 105 P age

106 Role: lead and partner Priority: medium/low 3. Provide inter-sector and cross-sector discussion and networking opportunities for local and regional manufacturers. While the Region no longer has a manufacturers association, there is a need to provide ongoing opportunities to excite local manufacturers about future opportunities for growth and investment in Durham Region. The Town should continue to work with the Excellence in Manufacturing Consortium, the Region of Durham and the MEDT to develop a program of local events for manufacturers. Role: lead and partner Priority: medium 4. Create stronger linkages with post-secondary institutions by understanding the capacity and capability of the UOIT. The Town staff must understand the commercialization potential of research being conducted at UOIT. There is a need to target researchers and business development officers at the UOIT who are commercializing this research. Building a value proposition for an Ajax location should be developed for start-ups/small businesses that are commercializing UOIT research. Role: lead Priority: medium 5. Actively promote the range of business services, programs and seminars that are available to local entrepreneurs and start-up businesses. Every effort should be made to promote the range of services that are available to local businesses and entrepreneurs and to ensure that the services meet their needs and reflect the transfer of state of the art technology to small business practice. In addition to this effort, the Town should pursue opportunities to have the Business Advisory Centre Durham host bi-annual business seminars in Ajax as a way to advance and support small business and entrepreneurs in the community. Role: lead and partner Priority: high/ongoing Town of Ajax Economic Development + Tourism Strategy 106 P age

107 6. Continue to advocate for strategic and collaborative tourism marketing efforts with the Region of Durham. The Town must advocate for a collaborative and regional approach to the marketing of tourism experiences. This should include an emphasis on culinary tourism, eco-tourism, sports tourism, as well as special events and festivals. This collaborative approach will increase the length of time visitors spend in the area and better capitalize on the financial impact of tourism spending. Role: lead and partner Priority: high/ongoing Town of Ajax Economic Development + Tourism Strategy 107 P age

108 GOAL 3: The Town of Ajax will drive SME growth by cultivating an entrepreneurial culture and effectively supporting and engaging with our business and stakeholder community. Small and medium sized business operations represent the vast majority of firms in Canada, collectively employing almost one-half of the workers in the private sector and contributing significantly to job creation across all sectors of the economy. In addition, the creativity and risk-taking by means of which many of these enterprises thrive are important sources of industrial renewal and dynamism, helping our economy adjusts to a rapidly changing world. 28 The high percentage of small businesses (90.8% of all business in Canada have less than 10 employees) makes it vitally important that the Town understand the demands of this segment of the economy. A further consideration in the development of new businesses in a knowledge-based economy is the support provided to entrepreneurs with innovative ideas and products. These high value entrepreneurs may require a different type of business support as it relates to mentoring, networking, links to academic institutions and workspace options. Objective To build on available business resources by providing enhanced support to entrepreneurs, small business owners and youth. Actions 1. Continue to improve the Town s online resources to better enable start ups / small business to access all major resources available to business. This should include information pertaining to training, business counselling, market research, preparing a business plan, marketing, event planning, and legal and financial assistance etc. Role: lead Timing: high/ongoing 2. Ensure adequate supply of small, high-quality space for start-ups. One of the greatest challenges for new businesses is finding suitable and affordable space in which to start up and run their businesses. The Town needs to ensure that its planning policy documents reflects and enables the growth of small business as part of its commitment to providing an adequate future supply of employment land. In addition the Economic Development staff should work with 28 October Town of Ajax Economic Development + Tourism Strategy 108 P age

109 landowners and the development community to promote and deliver more small scale office accommodation and innovative space options for small business. The Town should also investigate opportunities to develop co-working and full-service business space options as a way to support the development of entrepreneurs. Role: facilitate Priority: high 3. Develop a Young Professionals Network as a way to engage young workers where they live. Today s young workers want to feel connected to each other and to the community they live in. A young professionals network, particularly one that engages young people across cultures will benefit not only its members but also the community through its efforts to build leadership skills, encourage volunteerism, and contribution to community revitalization. With the high percentage of young workers and commuters in Ajax there is a need to provide opportunities for young workers to engage with each other, foster business connections and have a greater voice in the future of the community. This can take the form of targeted events or more importantly the use of social media tools (e.g. Facebook, LinkedIn). Role: lead and partner Priority: medium 4. Involve the Town s youth and young adults in creative economy initiatives. Involving the youth and young adults in creative economy initiatives is important from the perspective of retaining a young, skilled workforce in the community. The Town should direct more effort at creating high value co-op placement opportunities between local business and UOIT and Durham College. This will assist in diversifying the types of training and employment opportunities youth might seek locally. Role: lead and partner Priority: medium 5. Promote the Ministry of Economic Development & Trade Summer Company Program. This effort could encourage more students to start and operate summer businesses in Ajax. The Town should provide a matching financial bursary to students that successfully complete the program. Role: lead and partner Priority: medium Town of Ajax Economic Development + Tourism Strategy 109 P age

110 GOAL 4: The Town of Ajax will create `places` that attract investment and interest to the community and demonstrate the Town`s liveability and diverse range of arts and cultural experiences. The rise of knowledge-based industries and a new creative class of workers has altered the dynamics of economic development by accentuating the importance of quality of life and depth of arts and culture to local economies. To attract and retain the workforce that will drive future economic development opportunities, communities must focus on creating a heightened sense of place within the community with vibrant, creative and engaging community amenities. Creating this sense of place is perhaps nowhere more important and visible than in the downtown, which is often described as the living room of the community and where the first impression (and often a lasting impression) of the community is formed. A vibrant downtown should be the centerpiece of a community s residential, cultural, commercial and recreational growth agenda. Downtown residential development supports downtown retail activity and contributes to a sense of place in a community. Downtown residents act as a local source of labour and serve to promote the expansion of nearby employment uses. Healthy downtowns function as vibrant tourism destinations, stimulate outside investment and contribute to a broader base of community economic prosperity. While efforts are underway to revitalize Downtown Ajax, continued efforts are required to create a vibrant, mixed-use and pedestrian friendly district. The Town needs to communicate the vision for this area to the community. The Town also benefits from an expansive and accessible waterfront area and the presence of historic Pickering Village. Together these assets represent the most significant opportunity to create a meaningful and lasting impression of Ajax while driving significant economic benefit for the community. For this reason initiatives that would advance the development, redevelopment or enhancement of these areas must remain a priority for the Town. Objective To position places such as Downtown Ajax, the waterfront and Pickering Village as major focal points for investment in the community. Actions 1. Develop a Downtown Ajax Prospectus. A Downtown Ajax Prospectus will promote an updated vision of the downtown based on stakeholder and community input, provide an understanding of goals, actions and timing for public sector investment in the downtown and identify policies and programs that will stimulate private sector investment. A strong prospectus will also enable the Town to forge the needed public-private partnerships, coordinate high priority initiatives and oversee implementation. Initiatives may include infrastructure improvements/investments and a municipal parking garage. Town of Ajax Economic Development + Tourism Strategy 110 P age

111 Role: lead and partner Priority: high/ongoing 2. Position and promote the Town s Main Branch Library as a community gathering point. Given the long term vision for the Downtown and the location of the Main Branch Library, consideration should be given to better positioning and promoting the library as a community gathering point for business networking and small business support (e.g. regular business seminars, meeting rooms with technology, free wireless capability etc.). Role: lead and partner Priority: high/medium 3. Develop and promote the waterfront as a key tourism destination and a focal point for recreational activity as well as festivals and events in the Town. This effort should include improvements to the waterfront trails and parks and the continued use of the waterfront as a venue for festivals and events, where appropriate. To assist in this effort the Town should consider the creation of a Waterfront Advisory Group consisting of both residents and ratepayers that can advise, from a tourism perspective, approaches to increase utilization of the waterfront area. As part of this effort the group will need to continue to work with Tourism Durham to promote the waterfront as a key tourism asset to residents and visitors and reinforce the Ajax by the Lake brand. Role: partner Priority: high/ongoing 4. Designate Pickering Village in Ajax as a destination for cultural activities and events within the Town and plan for future cultural activities and events in the area. As this area of the community is the most historic and visually interesting, the Village offers a unique opportunity to create a significant tourist and community asset if it can be protected. This will involve the continued implementation of the Pickering Village Community Plan, re-development of St. Francis de Sales Church as a cultural venue and re-branding of the area as Pickering Village in Ajax to reinforce the Ajax identity. In addition, the Town will need to explore the feasibility of redeveloping the Town owned lands as a cultural centre and a more aggressive incentive program for facade improvements and heritage property maintenance. The Town s commitment to Pickering Village in Ajax will act as a catalyst for future investment in the community. Role: partner Priority: high/medium Town of Ajax Economic Development + Tourism Strategy 111 P age

112 5. Create a Pickering Village in Ajax Tourism Advisory Committee. With the high level of local interest in the success of Pickering Village together with the talent and tourism experience in the community, a Tourism Advisory Committee can assist staff and Council in the implementation of the long term plan for the Village and drive interest in future investment. Role: lead Priority: high Town of Ajax Economic Development + Tourism Strategy 112 P age

113 GOAL 5: The Town of Ajax will profile and promote the community`s creative industries as a key element of its economic and tourism development activities. A creative community is one in which its cultural resources are seen as more than just local assets they are recognized as economic drivers in the attraction of talent, innovation and ideas. This shift in thinking represents a new paradigm for urban change and has lasting implications for how a community should view economic development. Based on this concept of the creative city, author Richard Florida has created a Bohemian Index, which ranks a city or region s concentration of creative workers, such as artists, performers and other cultural occupations. According to Florida, creativity and innovation are fostered by proximity and density in social and economic networks, and so economic progress reflects both social vitality and geography 29. Creative places support opportunities, attract and retain people, and inspire the critical spirit. Objective To enhance opportunities for arts and cultural expression. Actions 1. Continue to implement the Town s Integrated Community Arts and Culture Plan. With arts and cultural amenities increasingly a factor in individual and business location decisions, the implementation of and community support for the 2006 strategy is essential to the future economic and social well-being of the Town. Role: partner Priority: ongoing 2. Develop an on-line directory of Ajax s creative cultural community. With the intent to attract more visitors to the Town (including Pickering Village) and raise community interest and participation in the ongoing arts and cultural events, festivals and service offerings, it is essential that the Town provide an internet based guide to the community. This should include independent artists, writers, performing arts, web and software developers, publishing, film and photographic services etc. as well as an inventory of public facilities. 29 City of Calgary Economic Development, Calgary Creative Industries Sector Profile, 2007 Town of Ajax Economic Development + Tourism Strategy 113 P age

114 Role: lead and partner Priority: high 3. Host a cultural summit where members of the creative community are invited to discuss ways and means of improving Ajax as an environment in which cultural activity can flourish. The Region of Durham recently hosted a highly successful The Art of Transition summit which brought together creative people and innovative thinkers from across the region. As a follow up and a way to capitalize on this momentum locally, the Town should take a leadership role in bringing its creative minds together to develop ideas that will support the local arts and cultural community. Role: lead and partner Priority: medium 4. Consider the development of a cultural seed fund where qualifying new cultural enterprises could obtain seed funding for start-up or expansion activities. This represents a real and important opportunity for the Town to advance itself as a cultural hub and destination. While an evaluation methodology would need to be developed consideration could be given to qualifying businesses on the basis of their potential to attract tourists and visitors. Role: lead and partner Priority: low 5. Explore potential for low cost incubator facilities for artists including live-work studio space. With the growing number of artists and creative minds in the Town and the Region coupled with the fact that Ajax is seen as a cost effective community for someone wishing to pursue a career in the arts, the Town should initiate discussions with the Region to undertake a feasibility study that gives consideration to the demand for such space. Potential locations for these facilities include Pickering Village, Downtown Ajax and the Central Employment Area. Role: partner Priority: low Town of Ajax Economic Development + Tourism Strategy 114 P age

115 GOAL 6: The Town of Ajax will broaden its marketing and promotion efforts to reflect the community`s aspirations, a commitment to sustainable growth and the potential for business investment and employment. In today s global and highly networked world, cities are increasingly the focus of an international competition for investment, talent and fame. With Ajax s location in a large urban metropolis, this effort is made even more difficult. To this end, places are just like companies: those with a strong brand find it much easier to sell their products and services and attract people and investment. 30 Given its current population and expected growth in the coming years, the Town of Ajax has a unique opportunity to create an image of itself as an affordable and culturally diverse community with a strong commitment to business, entrepreneurship and sustainable growth. Objective To develop and implement a broad based economic development marketing, internet and branding strategy for Ajax that will enhance the Town s overall brand. Actions 1. Initiate the development and implementation of a comprehensive economic development marketing strategy that includes an internet strategy and audience focus and tactics for engaging business in the Town s target sectors. Communications with the existing business community should focus on methods for informing and engaging the local business community as to the activities of Economic Development, while external marketing efforts will be focused on creating a brand and raising the profile and impact of the community both regionally and internationally. An inspiring, shared message as to the type of community that Ajax represents will also mobilize business and people to work collaboratively and proactively to create a strong local economy. Role: lead Priority: high 2. Develop an internet strategy that is focused on the attraction of business, entrepreneurs and families and includes the use of social networking tools (e.g. Facebook, MySpace, LinkedIn etc.), promotional efforts, and a linking strategy for external resources and economic development partners. 30 Branding Your City, CEO s for Cities Town of Ajax Economic Development + Tourism Strategy 115 P age

116 With the importance of the internet in today s peer to peer and personal communications an internet strategy provides an opportunity to develop a series of targeted messages to a wider range of audiences and needs. These tools include social networking sites, video sharing sites, wikis, blogs, as well as hosted services. This could also include the use of splash pages on the Town s website that help connect people intuitively to major websites in Town that highlight activities, events and resources in the community. Role: partner Priority: medium 3. Develop a bold and sophisticated web site for economic development that can be updated quickly and represents the emerging image of the Town as a growing, affordable and culturally diverse community to residents, visitors and the business community. Considering the importance of the Internet in today s business, give consideration to developing a website that is dedicated to economic development and gives greater prominence to Ajax s community and business profile. Regularly increase core content and functionality. Continually increase the number of links to your web site through an ongoing linking strategy program. Role: partner Priority: high 4. Promote local business and entrepreneurial success stories. Continue to assemble a range of local business and entrepreneurial success stories that celebrate the range and growing diversity of the Town s business community and integrate them into new media communication tools, promotional campaigns, e-newsletters and corporate website. Role: lead Priority: high 5. Develop a Planning & Development Annual Report. As investment activity in the community increases the Town will should develop a planning and development annual report which profiles major private sector investment, local business successes, highlights new developments and infrastructure improvements and features business accomplishments. This can be sent to local business owners, the development community, GTA based ICI real estate brokers and target sector businesses to inform their thinking of the opportunities associated with investing in Ajax. Role: partner Priority: low Town of Ajax Economic Development + Tourism Strategy 116 P age

117 6. In conjunction with the Downtown Ajax revitalization efforts, develop appropriate communications and marketing materials that bring attention to the vision and progress of the Downtown as a business and administrative services location in the Town. Given the lack of understanding surrounding the Town s long term intent for the re-development of Downtown Ajax, increased communications would have the affect of generating interest and investment opportunities for the Downtown. Communication efforts could include artist s renderings, planned investment, proposed phases and timing of development and regular updates. In time this should also include a downtown prospectus or business plan to attract investment interest. Role: lead and partner Priority: high/ongoing Objective To enhance the tourism product offerings and promote these products to a larger target audience. Actions 1. Undertake a regular evaluation of the Town s tourism promotional activities to ensure the delivery of a progressive marketing message. This approach will ensure a consistency of message and an improved understanding of the gaps that may exist in reaching the Town s target audience. Role: lead and partner Priority: medium /ongoing 2. Support the growth and evolution of existing events to the point where they have an even greater draw on visitor markets. This will involve working with community groups and organizations to grow existing events (e.g. Ajax Festival of the Arts, Celebrate Ajax, Pumpkinville) and the preparation of an event growth management plan that establishes performance targets for these select events. Role: partner Priority: high/ongoing 3. Support the development and promotion of culinary tourism. Culinary tourism is seen as a significant opportunity for the Town in its effort to create places that create interest and investment in the Town. The market demand for culinary tourism coupled with the Town of Ajax Economic Development + Tourism Strategy 117 P age

118 growing number of restaurants that offer ethnic cuisine and fine dining suggests that the Town could develop further as the population in the Region grows. These efforts should include a Culinary Tourism Working Group that would examine how to address the promotion of culinary tourism, and the creation of an on-line directory of restaurants and food services in Ajax. Role: partner Priority: high/medium Town of Ajax Economic Development + Tourism Strategy 118 P age

119 8 Performance Monitoring and Metrics Though economic development has at its core the economic growth and development of a community, how this is achieved can vary greatly from community to community. There is a broad scope and variety of projects that are considered to be economic development or tourism. These include delivering services for small businesses and entrepreneurs, business investment attraction, business retention and expansion, tourism marketing, workforce training, physician recruitment, community beautification, brownfield redevelopment, downtown revitalization, shop local programs and special events. As economic development is most commonly funded through municipal resources a key consideration for any economic development office is demonstrating that they are meeting the goals set for them. Economic development offices must have an effective means of measuring their performance and showing that they are delivering to the goals and objectives for the community. 8.1 Performance Measurement Performance measurement is a tool to determine how well a job has been done using both qualitative and quantitative information and activities. A lack of clear measurements (or the communication of them) is one of the key reasons why economic development practices fail. The following reasons make it important to track activity and performance. Providing public accountability Assisting with human resources management Using results to improve performance Identifying the return on investment An effective Economic Development Office must perform, measure and communicate these results. Unfortunately, performance measurement in economic development is not a common practice. To date, it has been unaffected by the Government of Ontario s Municipal Performance Measurement Program, which has set guidelines for almost all other aspects of municipal service delivery including road maintenance, emergency services and governance. This is something of an unacceptable situation and is slowly changing as EDOs see the merits in tracking performance so they can improve their operations. To a large degree though, EDOs are reacting to negative circumstances only tracking because their stakeholders are forcing them. Municipal government cannot be blamed, however, as they are being increasingly pressured by their constituents to do more with less and justify their spending. Without ongoing justification and demonstration of the benefits of economic development there may be pressures on the department to scale back its operations, thus limiting their effectiveness over the long term. The lack of research as to the most appropriate economic development performance measures also contributes to the lack of appreciation for the real impact economic development efforts can have on a community. In an effort to provide an understanding in this regard the following discussion provides specific details for measuring customer service and return on investment as it pertains to the business of investment attraction. Town of Ajax Economic Development + Tourism Strategy 119 P age

120 8.2 The Logic Model of Performance Management In developing performance measures for economic development it is important to understand how economic development activities contribute to the overall goals and objectives of the community. This is best illustrated through a logic model of performance management, as illustrated in figure 31. Figure 31 Performance Management Logic Model Activities Performance Outputs Outcomes Tourism Business Investment International Trade Business Retention Number of inquiries Number of Companies Assisted Number of jobs created Tax base generated % increase in GDP Employment rate % businesses surviving for 12 months of more Increase in business start up rate GDP Growth Job growth Increased R&D Expenditure Increased business survival rates In this model the ultimate results the community look to achieve are defined as Outcomes, or the bottom line conditions which is deemed to be important by the government and/or community. They tend to be high level statements that capture the comprehensive needs that must be met to achieve success and which requires a concerted effort by the whole community. To identify progress towards these high level goals Outputs or indicators (for which data is available) are defined that helps quantify the achievement of a desired result. This Output can be hard data, such as rates of business start-up or business survival rates; or they can be soft, indicators requiring data collection, such as people s attitudes and perceptions and are usually related to key characteristics of a successful community. These Outcome and Outputs however, define the expectations and growth plans for the community as a whole and are not usually the responsibility of any one individual or group, often requiring a range of community stakeholders to achieve them. The activities of the economic development office operate within this overall plan for growth. Economic development activities can range widely from community to community, but for each of these activities it is important to set out performance measures that identify how well an agency s programs are working. Typically these are quantifiable measures of the success or matters of timeliness, cost effectiveness and compliance with standards. For example, for business retention and expansion activities an economic development office may measure the number of companies assisted in expansion plans and the number of jobs created as a result. Importantly these measures are within the direct control of the economic development officer and are not the high level targets that are set for the community, over which the economic development officer is likely to have little influence. Ideally these economic development performance measures have a strong connection to the Output measures and Outcomes that the community have defined. Demonstrating the link between an economic development departments performance measures and the Output and Outcome measures is often Town of Ajax Economic Development + Tourism Strategy 120 P age

121 challenging, but is necessary to provide evidence that economic development activity is delivering to the goals of the community. In short, Outcomes and Outputs have to do with the ends the community are trying to achieve; performance measures have to do with the means by which the economic development offices are seeking to achieve them. 8.3 Economic Development Metrics Traditionally the most commonly used measure of the success of an economic development office relates to the numbers of new jobs and tax revenues created. Sometimes it is the only measure that is requested or understood by stakeholders, despite the fact that the objective of economic development projects is not always to create jobs and taxes, but instead to foster an environment that enables investment and development to occur. The Town of Markham has taken a unique approach to measurement with its Quality Service through Quality People (QSQP) initiative. Introduced in 1997, the program recognizes the role employees play in continuous improvement in order to meet the needs and expectations of both partners and clients. The QSQP program is based on a particular management model: Figure 32 Markham QSQP Model This management model is used as the conceptual focus for an annual series of surveys drawing on the experience of both partner organizations and client groups. A standardized series of questionnaires is developed for each group, and delivered on an ongoing basis. Although results are monitored on an ongoing basis, data could be aggregated and tallied on an annual basis, in order to compare year-overyear perceptions of performance by both clients and partners. Other similar performance measurement systems have also been applied to economic development, these include: The Balanced Scorecard Performance Prism Town of Ajax Economic Development + Tourism Strategy 121 P age

122 Cambridge Performance Measurement Process TPM Process Total Measurement Method These systems are an attempt to provide a more balanced view of performance across a range of perspectives. With the increasing importance of sustainability, many communities are also beginning to look for more holistic ways of measuring their progress that takes account of economic, social and environmental considerations. These include: Sustainability indicators delivered through the International Sustainability Indicator Network (ISIN), including indicators focused on the community s ecological footprint, and analysis of the community s triple bottom line; Metrics that combine quality of life with economic variables, such as the Genuine Progress Indicator (GPI); and Emerging measures such as the Community Vitality Index (and its related Business Vitality Index) currently being promoted by the Ontario Ministry of Agriculture, Food and Rural Affairs, and being piloted in communities such as Brockville. The Community Vitality Index, developed by the Centre for Innovative and Entrepreneurial Leadership, measures the quality of life in a community through a survey of citizens. The 95 question survey allows citizens to rate the community in nine areas: personal and economic security; life-long learning; wellness; leadership teamwork and networking; environment; arts, heritage and culture; sense of community; community entrepreneurship and innovation; and physical space. The community is then benchmarked against the average of three similar communities; figure 33 illustrates the scores for Wakefield (QC). Figure 33 Community Vitality Index for Wakefield, Quebec Town of Ajax Economic Development + Tourism Strategy 122 P age

123 At the same time, there are a number of third party evaluations occurring on a regular basis, which may provide a sound measure of a community s progress through its inclusion on or improved ranking in a series of existing indices and lists measuring a range of variables and achievements. Possibilities here are numerous, but could include: Canadian Business Magazine s rankings of Canada s Best Cities for Business The Economic Developers Association of Canada s annual Marketing Canada awards Corporate Knights Magazine s annual ranking of the Most Sustainable Cities in Canada KPMG s annual Competitive Alternatives study Today s Parent Magazine s annual ranking of the Five Best Cities for Families The Appleton Charitable Foundation s annual list of National Sustainable Urban Transportation Rankings Computerworld s annual Best Places to Work in IT rankings Of course, metrics are not economic development in and of themselves. When employed effectively, they may shed light on some element of the economic development process. Collectively, they may help to paint a picture of the larger processes positive or negative underway within a community or regional economy. The ultimate metric of economic development success, however, is left to the community: when business and community leaders are satisfied that progress is being made, then success is in sight. 8.4 Performance Measures to Consider A further consideration in developing performance measures for the Town of Ajax Economic Development Office will be the degree to which they are able to successfully implement the actions recommended in the Economic Development + Tourism Strategy. The Town staff involvement in driving key activities will be essential to the effectiveness of the Strategy and the Economic Development Office over the long term. What s most important in the preparation of qualitative and quantitative measures is to identify at the beginning of the period what the expectations are and to get agreement from Council and stakeholders. The following figure provides examples of the types of measures that could be considered. Town of Ajax Economic Development + Tourism Strategy 123 P age

124 Figure 34 - Economic Development Measures to Consider for Core Responsibilities Service Overall Industrial Readiness Investment Attraction Tourism Infrastructure & Planning & Examples of Measures Marketing Plan with a prioritized list of achievable projects for each service and measurable targets completed each fiscal year, including objective review of the previous year s activities Successful leveraging of funding dollars through senior levels of government Number of jobs created in target sectors Increase in the number of business people understanding the role of the Economic Development Office and how it can help them and their peers Percentage increase of new business start ups Number of hits to the Town s Economic Development web page Customer satisfaction levels with website Number of businesses that are fans or friends on the Town s social networking sites Number of investment inquiries and closed deals Satisfaction of service as determined by prospects Speed of development approvals process Number of jobs retained or attracted to the community Change in industrial class property tax assessment Percentage of times the Gold Standard of service delivery is met Level of private sector interest in Town programs Identification of feasible new business opportunities and number of interested investors (existing or external business interest) Number of visitors to local festivals and events Progressiveness of partnership with surrounding cities and towns Visitor satisfaction surveys Expansion in Community Improvement Plans % of population and businesses having access to wireless or landbased high-speed Internet Town of Ajax Economic Development + Tourism Strategy 124 P age

125 Service Downtown Revitalization Examples of Measures New incentive programs established for property or building improvements Dollar value of active incentive programs A decrease in the vacancy rate Number of new businesses attracted Net jobs and taxes created Expanded retail shopping opportunities Increase in the number of people living in the downtown Improved perception of downtown as a gathering place 8.5 Providing Top-Notch Service Economic development is a service business and investment prospects require a high-degree of attention. To effectively determine the client s needs and identify possible solutions takes strong selling skills and a broad knowledge of the local and regional economy, various industrial sectors, building/land development and the local business community. Interaction with a client may begin with a single staff person, but as the project develops it is normal for many different municipal departments and outside organizations to be involved. There needs to be a standard operating procedure and single point of contact, but this person must have the ability and capability of accessing information from many sources. To be successful in attracting new investment, the Town and other organizations in the community must be recognized as one team who are working towards the common goal of doing what it can to attract desirable investment. As the key point of contact, the Town s Economic Development Office should aim to consistently meet the Gold Standard of acceptable service. The following figure shows how technology has accelerated the Gold Standard over the last decade. Town of Ajax Economic Development + Tourism Strategy 125 P age

126 Figure 35 - Evolution of Economic Development Services Year The Gold Standard Response Time The Gold Standard of Economic Development Service hours 2001 Same day At the end of the call with the investment prospect the EDO says: To help you better understand our community and the opportunities we have for you, I will put together a package that contains our Community Profile, Available Properties Guide and Lure Brochure. I will use Post-It Notes to highlight the pages that will be of most interest so you can quickly find the relevant information. I will courier that out to you tomorrow and you should have it in 48 hours. At the end of the call with the investment prospect the EDO says To help you better understand our community and the opportunities we have for you, I will send you an before the end of the day that has several attachments including key excerpts from our Community Profile as well as hyperlinks to online listings of available property that closely meets your criteria While on the phone During the call with the investment prospect, the EDO says Do you have access to the Internet right now? [YES] Great, why don t we go online and I ll take you through our website so that you can download the relevant files. We ll also go through our available properties directory and look at maps, photos and details of available properties which meet the criteria you ve described to me. Source: Millier Dickinson Blais (2008) The advancement of technology and the internet means that overnight responses are seldom good enough. Communities must become more sophisticated in gathering/organizing community data and responding immediately to specific questions. This is easy to measure, but it takes an honest self-assessment. Simply, how did we do? Did we meet the Gold Standard of Service for that client? Tracking this will provide, at the end of each quarter, the number of times the gold standard was met. Over the course of several quarters, one will see a trend and be able to proactively identify ways to improve. There are other techniques that can also be incorporated, including getting feedback from customers/clients. While Customer Feedback Surveys are used in the private sector, they are rarely used by the public sector. Town of Ajax Economic Development + Tourism Strategy 126 P age

127 In 2007, the Economic Developers Council of Ontario (EDCO) held investment readiness seminars across the Province. Hosted by a US-based firm that selects sites for international companies, the seminars were an effort to help communities identify what they need to do to be better prepared for investment inquiries. The following findings are relevant to this discussion: In the last 10 years decision cycles have been compressed. Operations run 365/7/24 and an economic development office that does not keep up is likely to miss opportunities. Having an inventory of Certified available properties speeds up the process and heightens an investors interest. These certified properties have been independently verified to be shovelready. In other words, zoning is in place, there are no environmental/archaeological/geological problems, and utilities are at the site; and Competitive communities have an immediately available inventory of available buildings and land, appropriate utility infrastructure, a labour force that is ready to work, shows widespread support for industry, and can give a professional presentation to decision makers. If the Town of Ajax wants to remain competitive in attracting new business investment, the level of preparedness to respond to investment enquiries is a key consideration. In this respect, the Town must consider the opportunities for industrial, business and tourism investment. There is also the opportunity associated with supporting the growth of local business through expansion. At each stage in the process there are opportunities for the Town to work with the investor to ensure that their needs and requirements are being met A Strong Web Presence With the new Gold Standard of customer service in economic development including a strong web presence, business recruitment efforts must now include an effective community website. In a recent survey of corporate executives with real estate responsibilities conducted by Developers Counsellors International, respondents suggested that a strong internet presence has become the most important communication tool for economic development. In the report, Winning Strategies in Economic Development Marketing, it was reported that Internet/website has soared in recent years to capture the highest rating among all economic development marketing tools ahead of advertising, planned visits and publicity. While this survey was geared to the opinion of business executives, the importance of an effective and comprehensive website is just as important to small business entrepreneurs, visitors and would be residents of the community. Town of Ajax Economic Development + Tourism Strategy 127 P age

128 9 Conclusion The economic base and sector analysis along with the economic development and tourism goals and action plan provides the Town of Ajax with clear direction that, if properly resourced, can help the Town realize its vision. Five target sectors will help focus Town economic development and tourism efforts: 1. Business and Information Technology Services Sector 2. Health Care and Social Services Sector 3. Wholesale Trade Sector 4. Sustainable Energy & Technology Based Manufacturing Sector 5. Tourism Sector. The six goals will help staff deliver on opportunities in these sectors. 1. The Town of Ajax will be strategic in its approach to economic growth by engaging with the development community, business and regional stakeholders and senior levels of government in the attraction of business and investment in its target sectors. 2. The Town of Ajax will leverage regional assets and opportunities to advance targeted business investment, peer to peer networking and innovation within its local business community. 3. The Town of Ajax will drive SME growth by cultivating an entrepreneurial culture and effectively supporting and engaging with our business and stakeholder community. 4. The Town of Ajax will create `places` that attract investment and interest to the community and demonstrate the Town`s liveability and diverse range of arts and cultural experiences. 5. The Town of Ajax will profile and promote the community`s creative industries as a key element of its economic and tourism development activities. 6. The Town of Ajax will broaden its marketing and promotion efforts to reflect the community`s aspirations, a commitment to sustainable growth and the potential for business investment and employment. With the action plan and performance metrics laid out in the Economic Development + Tourism Strategy, the Town has the tools it needs to capitalize on emerging opportunities as it relates to business investment and growth. Town of Ajax Economic Development + Tourism Strategy 128 P age

129 Appendix I Key Document Summaries Town of Ajax Economic Development + Tourism Strategy 129 P age

130 Town of Ajax Economic Development + Tourism Strategy 130 P age

131 Title: Town of Ajax Land Use Planning Study: An examination of Auto-Oriented Land Uses within the Downtown Central Area and Along Harwood Avenue between Kingston Road and Doric Street Author: Town of Ajax Date of Study: May 3, 2004 Purpose: On December 8, 2003, Ajax Town Council passed Interim Control By-law # to enable the preparation of a land use planning study to examine auto-oriented land uses in unique, mixed use areas of the Town. The intent of the study was to identify ways to create a Downtown that is vibrant, safe, and attractive; containing a broad mix of commercial, residential, and institutional development; and is built for pedestrians. This is central to the vision in the Town s official plan, of creating a mixed-use, pedestrian oriented downtown. The underlying theme, as other municipalities are striving to do as well, is to create a downtown core that is a destination, drawing people from areas beyond the core, inviting them to park their cars, and then sample the activities and services that the downtown has to offer as pedestrians. The study proposes amendments to both the Town s official plan and zoning by-law to prohibit various land uses which by function cater to the automobile rather than the pedestrian, for lands located within the study area. For this study, those land uses that cater to automobile rather than pedestrian were: Motor Vehicle Service Centres, Gas Bars, Washing Establishments, Rental Establishments, and Sales Establishments; Drive-Through Facilities and Restaurants; Taxi Depots; and Parking Lots as Principal Uses. All of these uses, with the exception of parking lots as principle uses, were permitted within the study area; both in single zone designations covering limited areas, or larger portions of the study area in multiple zones. Summary of Key Findings: Auto-oriented land use activities generate high levels of traffic which can potentially be detrimental to the operation of adjacent land uses, which is of particular concern for areas envisioned to be developed as intensive, mixed-use, pedestrian-oriented districts. With a few exceptions (Verona Mall demolition, Harwood Mall redevelopment), development of the downtown core has largely not achieved the official plan vision for the area, with development instead limited to auto-oriented land uses. Strengths with regards to creating a pedestrian-oriented, mixed-use downtown area included the significant concentration of apartment uses, the number of civic resources, large vacant sites with development potential, and large sites with redevelopment potential. Auto-oriented uses were not undesirable, but inconsistent with the Town s vision for a mixed-use and pedestrian-oriented downtown area. The amendments to the Official Plan and Zoning bylaw serve to encourage more mixed-use development in the Downtown: o Prohibit new auto-oriented land uses from locating within the Downtown Central Area or, within the Uptown Central Area, on lands situated within 125 metres of Harwood Avenue, south of Kingston Road, which do not abut Kingston Road; Town of Ajax Economic Development + Tourism Strategy 131 P age

132 o Allow parking lots as principal uses and new motor vehicle sales establishments (excluding accessory repair facilities and the outdoor storage or display of vehicles) within the study area; and o Ensure that where lands are primarily used to provide parking, an appropriate level of landscaping treatment is provided. Concerns raised in the community consultations, such as the limitation of drive-through or parking facilities discouraging development of some commercial uses, or convenience of these uses are significantly out-weighed by the benefits of encouraging pedestrian-oriented uses. Town of Ajax Economic Development + Tourism Strategy 132 P age

133 Title: Central Ajax Employment Area Land Use Compatibility Study, SWOT Analysis and Planning Report Preferred Strategy Authors: Sorensen Gravely Lowes Planning Associates Inc., Joseph Bogden Associates Inc., LEA Consulting Ltd., SCS Consulting Group Ltd., Senes Consultants Ltd., AMEC Date of Study: September 2008 Purpose: In order to promote and accommodate a broader range of uses in the downtown, the Town undertook a study to improve the land use compatibility at the interface of the Downtown and the Central Ajax Employment Area (which abuts the west side of the Downtown). Currently, the industrial character of the Central Employment Area presents challenges to achieving this compatibility, and creating an attractive place for new investment in residential and mixed-use developments in the Downtown area. The purpose of the study was to conduct an in-depth examination of the existing land uses, policies, infrastructure, and site conditions in the Central Ajax Employment Area, and identify measures to improve the compatibility of traditional employment uses and residential, commercial, and mixed-uses in the Downtown. At the time of the study, the Central Ajax Employment Area was composed of a majority of manufacturing businesses, but also some prestige employment uses (professional services). Summary of Key Findings: The vision for the Central Employment Area is to evolve into a more prestige employment area that is compatible with the Downtown, is walkable for employees, encourages transit use, and upholds high standards for building and streetscape design. The Study Area is designated Employment Area in the Durham Region Official Plan (2004), and General Employment in the Ajax Official Plan. The majority of the properties in the Study area are zoned General Employment (GE); with two properties zoned Automobile Commercial (AC), and a portion of one property zoned Prestige Employment (PE). Part of the Study Area falls within the Downtown CIP area, offering landowners an incentive to redevelop their lands. The report found that the Study Area is a viable employment area that is well suited for employment uses. The Area does not exhibit the characteristics of a modern business park which encourages prestige employment uses; improvements are needed to the public streetscape and private lands in terms of landscaping, pedestrian safety, orientation of parking, and screening of loading and storage areas. The study notes strong financial incentives will be needed to initiate change Alternating visions of the Central Employment Area (Employment uses) and the Downtown Area (Residential uses) are potential threats to the realization of the other s respective vision. There needs to be an understanding of the potential for one to act as a catalyst for the reinvigoration of the other. One major element critical to the image enhancement of the Study Area was the improvement of the Steam Plant property. The vision is to redevelop the facility as a more environmentally sustainable co-generation facility using wood waste biomass, facilitating opportunities for district energy in the adjacent areas. Redevelopment includes operational improvements for pollution abatement and aesthetic improvements so the facility better fits with the character of the adjacent downtown area. Once redeveloped, the heat and electricity generated could potentially help attract industrial, residential and commercial development to the Downtown. Height and development restrictions Town of Ajax Economic Development + Tourism Strategy 133 P age

134 must be put in place in the Downtown and Central Employment Area to reduce the potential for land use conflicts once the plan is redeveloped. Three strategies for land use in the Study Area were developed: changing all properties to Prestige Employment (PE) zoning; changing the Official Plan designations and zoning of key transition properties; or applying strict design and landscaping requirements only. The preferred land use strategy is a combination of the three: streetscape, landscape, and design improvements coupled with land use restrictions at the interface with the Downtown and on lands with frontage on roads that lead to the Downtown. Stakeholders pointed out that financial incentives would likely be needed for changes in the private realm, and that the Town should take an active role in instigating change by investing in the public realm. The report suggests that the Town implement a new CIP for the Study Area, or extend the Downtown CIP to cover the Study Area. With proposed redevelopment, there may be increased traffic that develops (especially with the redevelopment of the downtown area); suggesting that intersection improvements or road realignments may be warranted at several intersections in the Study Area. In order to implement the preferred land use strategy, recommendations included: o Redesignation of lands abutting the Downtown from General Employment to Prestige Employment in the Official Plan; o Amendments to Area Specific Policy 6.10 of the Official Plan to include lands in the study area that interface with the Downtown, permitting land uses in both the Prestige Employment designation and Special Area Policy 6.10 with some adjustments; o Amendments to Zoning By-law No to establish landscape buffers and setbacks for outdoor storage that is located in a rear or interior side yard adjacent to the Downtown; o Amendment to Zoning exception 4, as amended by By-law No , to remove the permissions for the Steam Plant as it operates and establish permissions for a district energy facility; o Development of a CIP program to provide necessary incentives for façade improvements, landscaping improvements, parking lot retrofits and rearrangements, and screening and fencing, either through expansion of the Downtown CIP or creation of a separate CIP for the Central Ajax Employment Study Area; and o A Site Plan process review tied to the Official Plan review exercise that was currently underway, ensuring and future development or redevelopment proposed in the Study Area enhances the prestige image of the area. Town of Ajax Economic Development + Tourism Strategy 134 P age

135 Title: Ajax...Inspired by Creativity, Driven by Passion. An Integrated Community Arts and Cultural Plan for the Town of Ajax Author: Town of Ajax Date of Study: July 2006 Purpose: Many municipalities across North America have recognized that arts, culture, and heritage are vital assets for economic and social growth of a community, in addition to being integral to a community s quality of life. As a result, many communities are engaged in various forms of cultural development and renewal. In 2003, Town Council placed an emphasis on arts and culture in the Town s corporate strategic plan, with the adoption of a strategic goal to promote arts and culture in our community. Building on the momentum of a few local successes, the Town initiated a strategic review process in January 2006 to unite the cultural community and provide a policy framework for future decision making and leadership. The resulting plan will lay out a blueprint for cultural development in the Town over the following 10 years. The recommendations in the report aim to support a vibrant, flourishing arts sector that will contribute personal, social and economic benefits to the community. Summary of Key Findings: Ajax has strong cultural diversity, with 44% of the Town s families of mixed heritage; strong level of population with post-secondary education (54%); and average household income of $75,000 Town Council has ultimate responsibility for the plan, with implementation being managed by the Recreation Services department. Many other corporate departments will be stakeholders. The plan is based on six goal statements: o Goal Statement 1: Increase and enhance the variety and diversity of creative cultural experiences and programs. o Goal Statement 2: Provide and develop places and spaces for cultural and artistic activities throughout the community. o Goal Statement 3: Improve communication and information resources to better market arts, culture and heritage in Ajax. o Goal Statement 4: Strengthen alliances and partnerships for effective growth and development in order to facilitate greater community capacity building. o Goal Statement 5: Support a climate where the arts, cultural and heritage community can flourish through economic investment and cultural renewal. o Goal Statement 6: Create an environment that encourages a thriving artistic and cultural community...a collective effort. The following actions within those six goal statements have implications on economic development: o Develop new opportunities for outdoor experiences, such as walking tours of trails and historic districts. o Coordinate programming and use of public spaces for arts festivals, fairs, and events in conjunction with Economic Development and Corporate Communications. o Encourage planning and development proposals which either expand or contribute to the inventory of arts and cultural facilities in Ajax. o Investigate the inclusion of art and art features into hardscapes during the review of significant applications. Town of Ajax Economic Development + Tourism Strategy 135 P age

136 o Establish the waterfront as a primary cultural and natural landscape for arts by promoting its natural beauty and showcasing new events and festivals along the waterfront. o Develop a Town marketing strategy to brand creative culture as a valuable resource and assist arts organizations to promote the branded message. o Market the Village to promote its historic status and strengthen public awareness of activities and venues. o Strengthen alliances between the business community and the cultural sector, and where possible, nurture opportunities for joint participation in the provision of arts and cultural services and program development o Continue to play an active role in the Region of Durham s premier-ranked tourist destination framework project, a collaborative tourism initiative. Profile The Village as a major heritage and tourist destination. o Develop partnerships between the private and non-profit sectors and other levels of government to foster cultural opportunities through program development, tourism attractions and events, and renovated/new cultural facilities. o Raise public awareness of the value of arts and culture in the community, including the economic impacts and environmental and social benefits. o Include arts, culture, and heritage related organizations, institutions and enterprises in business attraction and retention efforts. o Ensure that the actions in the Integrated Community Arts and Culture Plan and the Economic Development Strategy work in harmony towards development of arts, culture, heritage and tourism. o Define the economic contribution of arts, culture, and heritage, and measure the changes in the economic performance of the cultural sector through an economic impact analysis. o Work in partnership with local tourism and hotel operators to develop a joint marketing strategy. o Define leadership in key strategic directions through the inclusion of arts, culture, heritage initiatives in department/corporate annual work plans. o Encourage developers to integrate public art into new and redevelopment projects in accordance with statutory responsibilities. Consultation results suggested a need to define where Toronto fits into the arts and culture plans for Ajax as a significant amount of local arts and cultural spending is drawn to Toronto. Town of Ajax Economic Development + Tourism Strategy 136 P age

137 Title: Downtown Community Improvement Plan Author: Town of Ajax Date of Study: April 2005 Purpose: In December 2003, Town staff was directed to prepare a Community Improvement Plan (CIP) for Ajax s downtown area. In 2005, the Downtown Community Improvement Plan was developed to encourage and facilitate the redevelopment of the downtown area. The Town s objectives with respect to the Downtown CIP were as follows: to enhance the Downtown as a unique district and the heart of the Town; to strengthen the Downtown in terms of vibrancy, diversity and economic viability by stimulating investment interest in the redevelopment potential of the Downtown; to strengthen the economic viability of the Downtown by maintaining a vibrant, economically viable retail and service base; to improve the image and appearance of the area (much of the development in the Downtown is aging and shows visible signs of deterioration); to promote redevelopment/rehabilitation that supports the Downtown vision, i.e., the creation of an intensive, mixed-use, transit-supportive, pedestrian-oriented district, functioning as the cultural and administrative centre of the Town; to increase the provision of diverse housing opportunities (medium and high-density residential forms in a Downtown infill location versus lower density forms in peripheral greenfield locations); to improve the pedestrian amenity and safety of the area, including the Downtown s function as a major transit hub; to enhance private sector investment opportunities and property maintenance; and to increase tax assessment and revenues for the Town of Ajax. The Downtown CIP contains two major components: Urban design and planning policies/regulations to be used as the basis for amendments to the Town s Official Plan and Zoning By-law; and a set of implementation strategies for Downtown revitalization, including four programs in accordance with Section 28 of the Planning Act (which required MMAH approval), and two programs as supplementary downtown area assistance initiatives. Summary of Key Findings: Six programs were included in the Downtown Community Improvement Plan: 1) Municipal Property Acquisition, Investment and Partnership Program: which allows the Town to acquire key strategic downtown sites, to redevelop lands the town already owns through public/private partnerships, or to provide grants to other levels of government in support of the CIP. 2) Redevelopment Tax Rebate Program: to provide financial assistance where Town property taxes increase as a direct result of improvements made in accordance with the goals of the CIP. 3) Planning and Development Fees Rebate Program: fees for official plan amendments, rezoning, minor variances, consents, site plans, plans of subdivision and condominium, sign permits, and demolition permits are exempted; and building permit fees are reduced. Town of Ajax Economic Development + Tourism Strategy 137 P age

138 4) Development Charge Exemption/Grant Program: exempting or reducing the Town s portion of development charges for eligible commercial, office, and residential development, either through exemption/reduction at the permit stage, or through a grant at the time of final inspection of completed works. 5) Reduced Parkland Dedication Requirements Program: to provide relief in the form of a reduction of parkland dedication (either land or cash-in-lieu) for property owners undertaking new highdensity residential and/or medium density residential development featuring underground parking. 6) Exemption from Parking Requirements Program: to provide for reductions or exemptions in the number of parking spaces required for projects in the CIP. Town of Ajax Economic Development + Tourism Strategy 138 P age

139 Title: Durham Region Profile Author: Durham Region Planning Department Date of Study: September 2009 Purpose: The Durham Region Profile presents a comprehensive collection of demographic and socio-economic data about the Regional Municipality of Durham. The Profile is divided into five key themes: population; social characteristics; households and dwellings; employment and labour force; and education and income. A summary of the most important socio-economic and demographic data as it relates to these five key themes are as follows. Summary of Key Findings: Ajax contains 16.1% of the Region s population, the second fastest population growth rate in the Region from 1976 to In 2006, 20.5% of the Regional population was below 15 years of age, 14% was between 15 and 24, and 10.7% were 65 or over. The findings indicate comparatively higher populations of young people. In 2006, Ajax had the highest proportion of population below 15 years of age and the lowest proportion of population over 65 years of age in the Region. The largest proportion of immigrants in Durham Region has settled in Ajax (24.3%) in Ajax has the highest proportion of population in the Urban area of all of Durham Region s municipalities. Ajax s population is projected to increase to 137,670 by 2031, an additional 43,790 residents from In 2006, Ajax had the highest proportion of visible minority population in the Region (35.6%). The highest concentrations were Black, South Asian, Filipino, and Chinese. The Town of Ajax had the highest average owner s major payment ($1,526) in the Region in 2006, which includes monthly shelter costs. The average for the Region was $1,343 and the average in the GTA was $1,405. Average cost of new and resale housing in Durham Region was considerably less than other Regions in the GTA in Average monthly cost of rent in Durham Region was less than all other Regions in the GTA in Durham s labour force increased 12.3% to 313,870, from 2001 to 2006; increase of 19.1% for residents not in the labour force (students, homemakers, retired workers, seasonal workers in an off season not looking for work, and persons who could not work because of long-term illness or disability). There was a slight decrease in the regional participation rate from 2001 (72.2%) to 2006 (71.0%). Regional unemployment increased from 5.6% in 2001 to 6.3% in Highest labour force concentrations in the following occupations across the Region: sales and service (23.3%); business, finance, and administration (20.2%); trades, transport, and equipment operators and related occupations (15.5%); and management (10.9%). Highest labour force concentrations in the following industries across the Region: manufacturing (13.1%); retail trade (11.9%); and health care and social assistance (9.1%). Durham had 54.4% of its employed labour force working in Durham; lower than Peel Region and Toronto, but higher than York and Halton regions. Town of Ajax Economic Development + Tourism Strategy 139 P age

140 Ajax had the second lowest proportion of residents that lived and worked in Durham Region and second highest proportion of residents working outside of Durham Region. Durham Region employment is projected to increase to 350,000 by 2031; Ajax employment is projected to increase to 49,290. Ajax share of the Region s employment is expected to decrease relative to the other municipalities in the Region. Compared to the GTA, Durham Region had a lower percentage of the population with a university education, but higher proportions of the population with college, CEGEP or other non-university diplomas, apprenticeship or trades certificates or diplomas, and high school certificates or equivalent. For males, larger proportions of post-secondary education are in engineering/architecture (43.1%); business, management and public administration (17.9%), and social and behavioural sciences and law (6.6%). For females, larger proportions of post-secondary education are in business, management, and public administration (27.8%); health, parks, recreation and fitness (21.6%); and social and behavioural sciences and law (16.0%). In Durham, the average individual income increased 33.7% from 1995 to In 2005, Durham s average household income was the fourth highest in the GTA ($86, 391), higher than the Province s ($77,967). Average household income has increased 36.7% from 1995 to 2005 in Ajax; 39.5% in Durham Region; and 43.6% in Ontario. The Town of Ajax had the highest prevalence of low income for persons not in economic families (30.5%) in 2006; prevalence for persons not in economic families was 26.3% across Durham Region and 34.1% in Ontario. The Town of Ajax had the second highest prevalence of low income for economic families (9.2%) in 2006; prevalence for economic families was 7.7% across Durham Region and 11.7% in Ontario. Town of Ajax Economic Development + Tourism Strategy 140 P age

141 Title: Employment Areas Urban Design Guidelines Authors: Watchorn Architect Inc. and The MBTW Group Date of Study: July 2006 Purpose: The purpose of the study was to provide the Town of Ajax with the urban design tools to achieve a desired built form through the development of employment lands. In this case, urban design was referring to the location, configuration, and relationship of the component parts of employment lands, including open spaces, roads, buildings, parking areas, servicing, and landscaping. The standards were envisioned to apply to Greenfield developments, infill developments and the redevelopment of existing sites. The report was prepared to coincide with the completion of the Salem Road interchange on Highway 401. The interchange improved access to employment lands on both the North and south of the Highway, so these guidelines ensure that a high standard of urban design principles are applied to these areas as they develop. In addition, these principles affect development of employment areas in other parts of the Town, ensuring that high standards are maintained across the Town. Summary of Key Findings: The historic components of the Town are predominantly in the South (Notion Road Employment Area, Established Core Area), while the newer greenfield opportunities are predominantly in the North (Carruthers Creek Employment Properties, Audley Road Employment Area). For areas close to Highway 401, elements of civic and corporate prestige and identity are paramount, with sites adjacent to the Highway designed to present their best landscape, architecture, signage, and public identity to the corridor. Sites along Harwood Avenue (Carruthers Creek employment properties) are subject to a greater emphasis on integration with surrounding land uses, mainly the established residential character. All employment areas in Ajax should share a common element identifying them as being in Ajax, including built form, street furniture and landscaping. Significant regard should be given to integrating the private and public realms, ensuring that highquality design principles are applied to the design of both. Create highly aesthetic employment areas that integrate the natural vegetation and corridors that exist in each of the employment areas. Utilize the presence and location of GO transit facilities to enhance the identity and character of the Town. Create a unique experience along Highway 401 in Ajax and create gateways to Ajax on each end of the Town along the highway. As with Ajax original employment and residential areas, the public realm is the focus of design for employment areas: buildings are to be located close to, and address the street; with buildings positioned closely to create a sense of neighbourliness and promote a pedestrian oriented and transit-supportive environment contrary to traditional suburban areas. Location of public uses and stormwater management facilities should be along major streets and at prominent intersections or the end of vistas throughout the new street fabric created by new developments. The street fabric of new developments should create pockets or blocks, each with their own sense of place. Town of Ajax Economic Development + Tourism Strategy 141 P age

142 The private realm will be planned through the site planning process to appropriately address the public realm with buildings and landscaping and to create an environment that provides comfort and amenities and is efficient for building and transportation functions. Street-oriented site plan will be used for most new developments, and is important for infill or redevelopment of older sites. Sites adjacent to major natural features (open spaces, valley edges, streams, woodlots, parks, pedestrian walkways) should address those features with a treatment appropriate to an important street within the Prestige Employment designation. Gateways provide opportunities to create a sense of arrival or entry, reinforcing the image of employment lands. An important gateway exists for the Town at Highway 401 and Salem Road, but smaller gateway areas exist at the intersection of higher-order arterial roads across the Town, as well as landmark opportunities along the Highway 401 corridor. For unique situations that are beyond the scale envisioned by the document (single users in campus-setting developments, large corporate headquarters making dramatic architectural or landscaping statements), the goal is to apply normal scale guidelines to the developments to achieve high-quality, pedestrian streetscapes defined by built form throughout the whole development. Elements of the plan guidelines are to be implemented at the Draft Plan of Subdivision and subdivision agreement stage (street location, land use organization, location of stormwater facilities), while others are to be implemented under the site plan control process. To ensure development occurs in a comprehensive and coordinated fashion, the Town can require development of a tertiary plan, drawing upon all of the urban design guidelines. The plan suggests a privately-administered Design Control Review Process be established to implement the document in the Town s employment areas through review of all site plans, elevations, and materials and colours for all developments on a per-application basis the oversight, as well as the process for appeal of decisions by this Design Control consultant will be given to the Director of Planning for the Town of Ajax. Town of Ajax Economic Development + Tourism Strategy 142 P age

143 Title: Pickering Village Land Use Planning and Urban Design Study Preliminary Directions Author: The Town of Ajax Date of Study: December 2007 Purpose: The Pickering Village Area of Ajax is unique due to its concentration of heritage buildings, its relative age, the variety of buildings there and mixture of land uses. Certain heritage buildings have been restored to their original form, while others have been altered without much apparent regard for their (or adjacent) character. Other properties are in need of restoration, repair or improvement. In the case of new developments, some buildings have been constructed with appropriate attention to architectural detail or the heritage context of the area, while others present colours, materials, style or other design elements that appear out of place or inconsistent with the area. As such, the Town undertook a comprehensive land use planning and urban design study for the area in order to manage change of the Village, and ensure that any future new developments or redevelopments occur with consideration given to the context of the area. The purpose of this report was to identify draft preliminary directions regarding community improvement initiatives for the Village. Summary of Key Findings: The vision for Pickering Village builds on the unique wealth of heritage assets, attractive buildings, mature trees, proximity to prominent natural features, and intimate streetscapes along Kingston Road to create an area where: o Heritage resources are proudly restored and celebrated; o There is a focus on cultural activities that support the residents of Ajax and Durham Region; o Old Kingston Road becomes a vibrant, thriving, beautiful, pedestrian oriented street; o Streetscapes and sidewalks are attractive and inviting to pedestrians; o Natural features are protected and enhanced; and o Cyclists feel welcome and can safely travel on streets with links to off-street paths Several core planning principles were identified as being integral to the achievement of this vision: o o o o o o Preserve and embrace the heart and soul of the neighbourhood: tree protection, community and cultural facility improvement/modernization, preservation of key historical anchor buildings (incl. Places of worship) Preserve heritage and promote high quality architecture: design characteristics of older properties applied to new developments, stricter streetscape controls, protect/preserve heritage properties, impose height limits and protect against very large homes. Beautify the area and improve its appearance: uniform street improvements/furniture, create urban squares/parkettes, improve walkways/widen sidewalks, improve pedestrian lighting, design control implementation. Promote business improvement: increase retail diversity, promote cultural activities and events in the downtown. Provide incentives for appropriate development: CIP programs aimed at façade improvements and maintenance of heritage properties and incentives to encourage a more diverse mix of businesses. Selectively intensify commercial activity in existing buildings: expand office/service commercial area along Kingston Road, changing zoning from residential to mixed-use Town of Ajax Economic Development + Tourism Strategy 143 P age

144 along Kingston Road and Church Street, encourage retail commercial activity to keep the Village core and Church Street area attractive. o Improve traffic and transportation: improve transit on Church Street, examine traffic calming on Linton Avenue and Elizabeth Street, configure Kingston Road to match the design speed. o Develop a parking strategy appropriate for the area: encourage common parking areas for adjacent commercial developments, examine special parking standards for the Village. o Improve connections between parking areas and commercial areas. A set of draft preliminary directions to stimulate improvement in both the public and private realms were formulated through the public consultation process. The action items that influence economic development include: o Improve the campus of Town-owned facilities surrounding Memorial park as an arts and cultural hub. o Change zoning to promote retail on Old Kingston Road. o Change zoning to recognize shift to commercial uses and professional services along Kingston Road and the southern portion of Church Street South. o Change zoning to promote medium/high-density, mixed use development along parts of Kingston Road and Church Street South. o Develop property tax rebate grant program for improved properties. o Establish a heritage conservation district. o Approve incentive packages for retail uses on Old Kingston Road. o Develop an incentives program to promote development of Old Kingston Road, parts of Kingston Road and Church Street South, adapted from those programs in the Downtown CIP. o Form an implementation task force. Town of Ajax Economic Development + Tourism Strategy 144 P age

145 Title: Highway 401/Salem Road Interchange Study Review of Land Use and Urban Design Policies and Zoning Regulations for Ajax s Eastern Employment Gateway Author: The Town of Ajax Date of Study: June 2006 Purpose: The Highway 401 and Salem Road interchange has been identified as an important gateway to the Town by Ajax Council. It is intended that the interchange area be developed as an employment-intensive, pedestrian-friendly, high-quality landmark and prestige and corporate employment area. Based on growing interest from the development community about the lands in proximity to the Highway 401 and Salem Road interchange, and the concern that the Town s Official Plan policies and Zoning regulations were not strict enough, the Town undertook a comprehensive review of the lands to ensure that the interchange developed in the Town s vision for the area. Summary of Key Findings: The town s vision for the interchange requires that new developments be able to satisfy three requirements, but Town staff found that applicable Official Plan policies and Zoning By-law regulations for the area permitted developments that do not necessarily meet all three criteria at the same time. The criteria included: o the development is conducive to achieving the type of urban design needed to hallmark the interchange lands as an intensive gateway node featuring landmark buildings and a pedestrian-friendly environment; o the development generally is employment-intensive in nature; and o the nature of the development significantly promotes, complements and optimizes the character of the lands as a premier, non-commercial employment gateway. Various permitted uses failed to satisfy one or more of the three requirements and were thus not appropriate within the study area. Within the Prestige Employment designation in the Study Area, staff suggested the following uses no longer be permitted: warehousing, distribution centres and recreation facilities. With respect to the Low Density Residential designation currently zoned for Neighbourhood Commercial at the Southwest corner of Salem Road and Mandrake Street, staff proposed that within the study area the permitted retail commercial uses oriented to the surrounding community, including retail stores and personal service establishments, financial institutions, restaurants, and business / professional offices; be limited to mixed-use buildings with commercial/office uses at grade and residential uses above. Alternatively, the site may be wholly developed for appropriate medium-density residential uses. It is proposed that no new service station uses be permitted within the Study Area, notwithstanding the fact they were permitted by Prestige Employment and Low Density Residential designations of developable lands in the study area. Other specific uses (in addition to those above) currently permitted, but to be prohibited include: o Drive through facilities; o Self-serve Laundromats; o Motor vehicle rental and sales establishments (unless sales establishments meet various urban design criteria/performance standards to be implemented in the Town s Zoning By- Law); o Motor vehicle washing establishments (unless ancillary to a motor vehicle sales establishment); and Town of Ajax Economic Development + Tourism Strategy 145 P age

146 o Public storage facilities. To facilitate the urban design objectives of the Town s vision for the Study Area, free-standing forms of the following uses were proposed to be prohibited: o Financial institutions; o Restaurants; o Personal service shops; o Service or repair shops; and o Dry-cleaning depots. In light of applications at the time proposing official plan and zoning by-law amendments to facilitate developments not permitted or supportive of the Town s vision for the Study Area, the additional specific uses were prohibited: truck refuelling facilities and retail warehouses. As with the Downtown area, it was not the intent of the study to suggest the prohibited uses are undesirable, but instead incompatible for the Town s vision for the development of the Study Area at the Salem Road and Highway 401 interchange as a Gateway area. Town of Ajax Economic Development + Tourism Strategy 146 P age

147 Title: Town of Ajax Strategic Plan and Community Vision Author: The Town of Ajax Date of Study: May 2007 Purpose: The Town of Ajax Strategic Plan and Community Vision incorporates 12 priorities, 36 corporate goals and 105 strategic actions under five guiding principles to direct where the Town is heading, and how the Town will get there over the four years covered by the plan. The plan sets priority focus areas, goals, and strategies that have been developed through citizen consultation and planning processes, as well as through analysis of the current environment and trends. The plan is based on the Town s commitment to provide residents with effective service and cost-effective programs. Below is a summary of the ongoing strategies and guiding principles that have an influence on economic development. Summary of Key Findings: Guiding Principle: Strong Sense of Community o Develop stronger working relationships with stakeholders/service providers and stimulate joint initiatives including communications, marketing efforts, and public awareness. o Encourage developers to integrate public art into new development projects in accordance with the Town s Official Plan and/or statutory responsibilities. Guiding Principle: Managing Growth o Ensure sufficient lands are designated and maintained for employment purposes and to accommodate projected long-term employment forecasts. o Ensure the highest priority is given to providing employment opportunities in the Town s Official Plan. o Reinforce the existing Urban Area Boundary and maintain the adjacent rural area within the Provincial Greenbelt through the Official Plan. o Actively participate in the Highway 407 East EA project. o Facilitate on-going discussions with Durham Regional Transit, GO Transit, and the GTA Transit Authority (Metrolinx) to ensure that the transit level of service is maintained and enhanced. o Develop and implement an annual real estate acquisitions and disposals program to ensure the Town s needs are met with regards to the construction of infrastructure and town facilities, as well as the provision of greenspaces. Guiding Principle: Environmental Awareness o Undertake the real estate acquisitions required to secure key environmental lands into public ownership to enhance the Town s Greenlands Framework and improve connections. o Establish the waterfront as a primary cultural and natural landscape for arts by promoting its natural beauty and showcasing new events and festivals along the waterfront. Guiding Principle: Economic Prosperity o Partner with landowners, developers and the brokerage community to promote and market the Town s employment lands. o Develop an annual outreach strategy to meet perspective clients within the Town s target sectors, including activities such as trade shows, presentations, meetings, special events and advertising. o Participate in the development of the transportation and servicing infrastructure for the Town s new employment areas to ensure they meet the needs of new businesses. Town of Ajax Economic Development + Tourism Strategy 147 P age

148 o o o o o o o o o o o o o o o Produce a variety of marketing materials to promote the benefits of doing business in Ajax, including the Explore Ajax advertising series. Enhance the business portion of the Town s website to maximize the information available to potential investors. Market the Village to promote its historic status and strengthen public awareness of activities and venues. Launch a corporate calling initiative to meet with local businesses and determine how the Town can better meet their needs. Encourage entrepreneurship and small business development through the Ajax Business Network and by further developing the Town s Small Business Resource Guide. Maintain an accurate inventory of the Town s businesses in order to monitor trends in the local economy and develop initiatives that support future growth. Continue to implement Downtown Revitalization Initiatives by facilitating/promoting key (re)development projects, and demonstrating municipal leadership through improvements to roads, infrastructure, and public spaces. Promote and market the Ajax Downtown Community Improvement Plan as a vehicle by which to encourage private sector investment in downtown revitalization. Develop a community vision, implement supporting policies and urban design standards, and promote appropriate (re)development in the Pickering Village area through a Community Improvement Plan. Actively engage the Region of Durham as a partner in the Village Community Improvement Plan programs and initiatives in support of it being a regional tourism destination. Promote development of the Salem Centre Business Area as the business gateway into Ajax. Launch a new tourism section in the Town website to promote Ajax s tourism destinations. Develop a marketing program to promote Ajax as the convention and accommodation destination in Durham Region. Develop marketing strategies that highlight Ajax tourism destinations, including the Town s waterfront, natural areas and special events. Continue to work collaboratively with Town departments and the Region of Durham to develop and implement joint promotional efforts in the tourism sector. Town of Ajax Economic Development + Tourism Strategy 148 P age

149 Title: Town of Ajax Employment Report Author: Watson & Associates Economists Ltd. Date of Study: June 2009 Purpose: This comprehensive review builds on Durham Region s Provincial Growth Plan conformity exercise, Growing Durham, which was completed in November The report provides a comprehensive review of the Town s long term employment growth potential based on past employment trends, as well as future prospects. This analysis is then used to determine the adequacy of the Town s inventory of developable employment lands to meet potential demand. Overall, the findings of the report provide insight into the Town s long-term planning and economic development policy formulation exercises to 2031, or the horizon for the Province s Growth Plan for the Greater Golden Horseshoe. Summary of Key Findings: To 2031, the population of the Town is expected to grow at an annual rate of 1.5%, which is slower than the 25-year historical growth rate. Over the next five years, the Town of Ajax is well positioned to capture a significant portion of the Greater Toronto Area-Hamilton employment growth in population-related employment (retail and service) and export-based employment sectors (industrial and office commercial). This medium term opportunity is based on future population growth in greenfield areas and intensification, but also based on the fact that the Carruthers Creek employment area is one of the Region s largest serviced and vacant employment areas. Realization of key elements of the Regional Structure as identified in the Regional Official Policy Plan (e.g. The easterly extension of Highway 407, Highway 401 improvements, Pickering Airport) will enhance the Town s ability to achieve its full growth potential over the longer term. The Town s supply of net developable vacant lands has diminished considerably from 2005 to 2008; with 61 net ha. having been absorbed. As of December 2008, the Town had 79 vacant employment sites, comprising 269 net ha., with an additional 43 net ha. on 32 partially occupied sites for a total of 312 net ha. Adjusted for land vacancy, the Town s supply of vacant employment lands is further reduced to 215 to 233 net ha. (at the year end of 2006). From 1988 to 2008, the average annual absorption rate for the Town of Ajax was approximately 6 net ha. on employment lands; using the absorption rate method, future demand is forecast to be well above these levels at approximately 13 net ha. per year from 2007 to From 2007 to 2031, the average annual absorption rate is forecast at 12 net ha. per year. Based on this analysis, the Town s supply of net vacant employment lands is not sufficient to accommodate demand to 2021 (or 2031). By 2021, the expected employment lands deficit could be up to 53 net ha., forecast to increase to net ha. by Notwithstanding current economic conditions, the Town of Ajax is well positioned to capture employment growth in the construction, advanced manufacturing (especially green energy products, equipment, etc.), wholesale trade, and transportation and logistics clusters. Based on existing permissive policies in the Town s zoning by-law, the recent demand on the Town s employment lands for commercial employment uses (business services, finance, insurance, real estate, accommodation and food, government and health care) is expected to continue. Town of Ajax Economic Development + Tourism Strategy 149 P age

150 To 2031, population growth on greenfield residential land will become constrained as the Town reaches build-out, diminishing future demand for population-related employment uses. Increased demand for health care and government services based on the aging population will offset decreased demand for educational sector employment based on decline of school aged population and decreasing net migration post-2021, producing a modest employment growth of the institutional sector, of which only a small portion (approximately 10%) is expected to be located on employment lands. Increased telecommunications capacity will continue to support the growth of work at home employment in the Town, from 2007 to Based on the constraints posed by a fixed urban boundary, the identified supply of net developable lands in Ajax ( ha.) represents the ultimate build-out of employment on employment lands. The Town s forecast absorption rates are expected to rapidly diminish post 2021; supply constraints are expected to emerge between 2016 and 2021 as build-out approaches and there is reduced market choice within existing sites. Assuming unconstrained market conditions, it would be reasonable to assume that Ajax could capture a higher share of Durham-wide employment growth between 2007 and 2031, with absorption averaging approximately 13 net ha. per year. Assuming unconstrained market conditions and based on the activity rate method, the Town would experience an employment lands deficit of 65 to 83 net ha. by 2021, and 106 to 124 net ha. to Town of Ajax Economic Development + Tourism Strategy 150 P age

151 Title: Ajax Commercial Policy Review and Land Needs Assessment: Background and Recommended Approach Report Author: Sorensen Gravely Lowes Planning Consultants and Robin Dee & Associates Date of Study: May 2009 Purpose: This report was prepared as part of the Town s five year Official Plan Review activities, both in order to implement the Provincial and Regional growth plans, but to also update an original Commercial Policy Review completed in the 1980s. The report was prepared to address the following issues: (a) To assess the Town s commercial policy structure in light of the goals and objectives of the municipality and the current and emerging trends in the commercial marketplace and, where necessary, recommend changes; (b) To determine how much commercial land is required, and if additional land is required highlight the most appropriate sites for such expansion to accommodate the anticipated market demand based on the Town s capacity population and the surrounding area; and (c) To assess the feasibility and impact of an Entertainment/Tourism Node that could be anchored by the existing OLG Slot Facility located at the Northwest corner of Kingston Road and Alexander s Crossing. In addition, the study was to evaluate existing commercial sites and provide a critical analysis of their long-term viability, potential for intensification and strategies to improve their performance, as well as examine the market feasibility of encouraging residential/commercial mixed-use planning mechanisms to achieve this format. Summary of Key Findings: By the fall of 2007, Ajax had approximately 304,000 square metres (3.27 million sq.ft.) of occupied and vacant retail and service floor area. The total vacant space in Ajax was 6,735 square metres (72,500 sq.ft.), for a vacancy rate of 2.2%. The normal vacancy rate of an efficient retail/service market is typically considered to be 6-8%. In December 2007, the estimated inventory of commercial space that could be accommodated on designated sites in the Town was 131,163 square metres (1.41 million sq.ft.). The report also concluded that retail sites are generally well located to develop as planned. The inventory of occupied office space on designated commercial sites was 34,133 square metres (367,400 sq.ft.), leading the consultants to observe that there was little in the way of vacant office space within commercial areas. As such, the local office market is more or less in equilibrium. The location and size of currently designated commercial sites in Ajax can accommodate the future needs of the Town s allocated population of 137,670 in The only major retail facility lacking in the Town is a full-line department store (i.e. Sears, The Bay) which could ultimately be accommodated through any number of vacant commercial sites or through the redevelopment of an existing site in Uptown or Downtown areas. All commercial sites continue to be viable in light of vacancy rates below what is considered to be normal. Town of Ajax Economic Development + Tourism Strategy 151 P age

152 The redevelopment of Uptown, Downtown and Mixed-use corridors to include residential development will be required to accommodate the allocated population by A number of vacant commercial sites are large enough to accommodate large-format retail uses or to introduce new retailing trends (mixed-use developments). Under a scenario with continued high inflow of retail expenditures from residents in other municipalities and building coverage of 26% with surface parking (Scenario A), there would only be a slight deficiency of 5.6 net ha. (14 acres) in commercial lands by Under Scenario B, a reduced inflow of retail expenditures from external residents (closer to the market standard), the currently designated commercial sites are more than adequate to accommodate the demand and the additional space required to accommodate the Town s projected population to The greater than normal inflow sales in Ajax may not be sustainable based on the potential for nearby municipalities to construct commercial spaces. There appears to be little prospect of creating the critical mass required to establish an entertainment and tourism node at the existing OLG facility, based on discussions with OLG officials and a review of other communities where development of ancillary tourism related facilities are built/planned to augment existing slots/race tracks. The monitoring of the need for additional commercial sites and potential to accommodate a mix of higher-density and transit-supportive developments should continue to be undertaken at five year intervals in conjunction with five year official plan reviews. The recommendations of the report ultimately outlined that there were no required amendments to the Ajax Official Plan. Town of Ajax Economic Development + Tourism Strategy 152 P age

153 Title: A Strategy to Develop the Tourism Industry in Durham Region Author: the Tourism Company Date of Study: November 2006 This document outlines a series of recommendations for the Region of Durham based upon the province s premiere ranked tourism approach. The document starts by outlining the size and significance of the tourism industry in Durham (based upon 2004 data): total # of visits: 3.03 million total spending: $208 million, generating over $4 million in municipal tax revenue same day vs. overnight: 71% same day; 29% overnight origin: same day visits 98% from within Ontario; overnight: within Ontario (83%), 9% U.S., 4% other provinces and 4% overseas travel party profile: 90% 2 adults, average age: 41 yrs. market segments: - visiting friends and relatives (VFR) 71%, - pleasure; 19%, - business 7.3% - other 2.1% seasonality: 36% July to September; 21% per quarter for the remainder of the year. The intention of the plan was articulated as follows: The Region of Durham and its partners will work together to increase the time that same day visitors spend in the Region, increase the number of overnight visits, and generate increased spending and resulting economic activity by providing visitors with new and compelling reasons to visit Durham Region. Efforts will also focus on diversifying the visitor party profile to include more families. To achieve these goals, five strategic priorities will be addressed in the next five years, 2006 to 2011 as outlined below. 1. Invest into the strategic development of new and expanded tourism products/services; 2. Facilitate effective communication of regional tourism products/services to highest potential target markets; 3. Support and foster intraregional tourism networks; 4. Continue to generate presence and partnering with appropriate partners outside the region; and 5. Inform, educate and engage municipal politicians and staff on the benefits of and impact of tourism in Durham Region. Specific initiatives and implications for Ajax in each of these areas are as follows: Town of Ajax Economic Development + Tourism Strategy 153 P age

154 Strategic Priority 1. Invest into the strategic development of new and expanded tourism products/ services; 2. Facilitate effective communication of regional tourism products/ services to highest potential target markets; Selected Key Strategic Actions A. Develop overnight products (sports and tournament events, garden tours, etc.) and packages that link accommodation providers with attractions, restaurants, performing arts, walking tours, festivals/events, etc. to a range of market segments such as families, cyclists, auto event enthusiasts, long-stay business travellers, visitors to destination golf facilities, etc. B. Facilitate a coordinated Regional tourism events schedule to reduce duplication and to identify gaps in the event calendar that may be addressed with appropriate product development efforts. C. Continue to take a pro-active role in supporting the attraction of investment into new and expanded tourism facilities. A. Develop and implement a knowledgeable host program in order to provide visitors with more ideas and opportunities. Knowledgeable hosts include: residents who host VFR visitors front-line staff including hotel desk staff, B&B owners, attractions admission staff, taxi drivers, restaurant owners/managers, golf course staff, etc. volunteers who work at cultural and heritage attractions managers and owners of tourism operations tournament/meeting planners and businesses hosting out of town guests, staff, meetings, etc. leading residents who can act as ambassadors to bring more visitors to Durham. B. Pool resources currently invested into local visitor guide books and listings to develop coordinated and comprehensive Regional Tourism/Visitor Guide(s) with shared branding. C. Review, update and refine design of tourism map(s) to enhance linkages and range of Implications for Economic and Tourism Development in Ajax - work with tourism Durham to identify and develop these opportunities - ensure that certain events with significant tourism potential (e.g. Taste of Ajax) are on the list of Regionally promoted events - work with Tourism Durham in the identification and development of tourism opportunities - participate as a municipal partner in the development of this program - participate as a municipal partner in the development of this program - provide information as Town of Ajax Economic Development + Tourism Strategy 154 P age

155 3. Support and foster intraregional tourism networks; 4. Continue to generate presence and partnering with appropriate partners outside the region; and 5. Inform, educate and engage municipal politicians and staff on the benefits of and impact of opportunities within and throughout the Region. D. Improve in-region way-finding signage to be less restrictive for operators, address visitor travel patterns while in the Region and to build a shared Regional look and feel. E. Continue evolution of on-line marketing strategies to support and enhance off-line materials. This includes opt-in newsletters and effective use of landing pages/keywords by market segment. A. Expand and enhance regular tourism networking occasions for tourism operators to meet each other and to learn of new and ongoing offers outside of their immediate, local area. These occasions may also provide Durham Region tourism operators with other needs such as: training/skills development package development linking/support brochure swaps tourism product knowledge sessions/ opportunities planned investments, new programs, upcoming events, etc. B. Engage new, refreshed and planned tourist attractions, events, packages, etc. into established tourism networks and activities. A. Maintain efforts to ensure Durham Region has a seat at Getaway Country, GTA tourism networking group, Tourism Toronto, and Ontario Tourism Marketing Partnership Corporation (OTMPC) committees, etc. B. Distribute updated and refreshed itineraries to media and travel trade operators to encompass new ideas on regular basis and in variety of mediums. A. Implement ROI and tracking for all Regional initiatives in order to provide Region with baseline and subsequent data. B. Facilitate the collection and distribution of consolidated Regional tourism updates and reports including visitor profile to attractions, events, etc. (number, place of origin, spending, reason for visit, etc.), new initiatives required - participate as requested - provide information as required - host sessions in Ajax on periodic basis - ensure Tourism Durham is apprised of tourism development efforts - support Regional efforts; no specific municipal role - provide information as required - support Regional efforts; no specific municipal role - provide information as required Town of Ajax Economic Development + Tourism Strategy 155 P age

156 tourism in Durham Region. and packages, etc. C. Encourage active representation or a voice at meetings of departments/ initiatives/ discussions that impact tourism in the Region such as traffic patterns, parking regulations, heritage designations, etc. D. Encourage understanding and importance of tourism services and infrastructure. - support Regional efforts; no specific municipal role - support Regional efforts; no specific municipal role Town of Ajax Economic Development + Tourism Strategy 156 P age

157 Appendix II National American Industry Classification System (NAICS) Definitions Town of Ajax Economic Development + Tourism Strategy 157 P age

158 Town of Ajax Economic Development + Tourism Strategy 158 P age

159 North American Industrial Classification System (NAICS) Sector Definitions Agriculture, Forestry (NAICS 11) This sector comprises establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish and other animals from their natural habitats and providing related support activities. Establishments primarily engaged in agricultural research or that supply veterinary services are not included in this sector. Mining and Oil and Gas Extraction (NAICS 21) This sector comprises establishments primarily engaged in extracting naturally occurring minerals. These can be solids, such as coal and ores; liquids, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, milling (for example, crushing, screening, washing, or flotation) and other preparation customarily done at the mine site, or as a part of mining activity. Establishments engaged in exploration for minerals, development of mineral properties and mining operations are included in this sector. Establishments performing similar activities, on a contract or fee basis, are also included. Construction (NAICS 23) This sector comprises establishments primarily engaged in constructing, repairing and renovating buildings and engineering works, and in subdividing and developing land. These establishments may operate on their own account or under contract to other establishments or property owners. Manufacturing (NAICS 31-33) This sector comprises establishments primarily engaged in the physical or chemical transformation of materials or substances into new products. These products may be finished, in the sense that they are ready to be used or consumed, or semi-finished, in the sense of becoming a raw material for an establishment to use in further manufacturing. Related activities, such as the assembly of the component parts of manufactured goods; the blending of materials; and the finishing of manufactured products by dyeing, heat-treating, plating and similar operations are also treated as manufacturing activities. Town of Ajax Economic Development + Tourism Strategy 159 P age

160 Manufacturing establishments are known by a variety of trade designations, such as plants, factories or mills. Manufacturing establishments may own the materials which they transform or they may transform materials owned by other establishments. Manufacturing may take place in factories or in workers' homes, using either machinery or hand tools. Wholesale Trade (NAICS 41) This sector comprises establishments primarily engaged in wholesaling merchandise and providing related logistics, marketing and support services. The wholesaling process is generally an intermediate step in the distribution of merchandise; many wholesalers are therefore organized to sell merchandise in large quantities to retailers, and business and institutional clients. However, some wholesalers, in particular those that supply non-consumer capital goods, sell merchandise in single units to final users. This sector recognizes two main types of wholesalers, that is, wholesale merchants and wholesale agents and brokers. Retail Trade (NAICS 44-45) The retail trade sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers, that is, store and non-store retailers. Information and Cultural Industries (NAICS 51) This sector comprises establishments primarily engaged in creating and disseminating (except by wholesale and retail methods) information and cultural products, such as written works, musical works or recorded performances, recorded dramatic performances, software and information databases, or providing the means to disseminate them. Establishments that provide access to equipment and expertise to process information are also included. The main components of this sector are the publishing industries (except exclusively on Internet), including software publishing, the motion picture and sound recording industries, the broadcasting industries (except exclusively on Internet), the internet publishing and broadcasting industries, the telecommunications industries, the internet service providers, web search portals, data processing industries, and the other information services industries. Finance and Insurance (NAICS 52) This sector comprises establishments primarily engaged in financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions. Included are: Town of Ajax Economic Development + Tourism Strategy 160 P age

161 Establishments that are primarily engaged in financial intermediation. They raise funds by taking deposits and/or issuing securities, and, in the process, incur liabilities, which they use to acquire financial assets by making loans and/or purchasing securities. Putting themselves at risk, they channel funds from lenders to borrowers and transform or repackage the funds with respect to maturity, scale and risk. Establishments that are primarily engaged in the pooling of risk by underwriting annuities and insurance. They collect fees (insurance premiums or annuity considerations), build up reserves, invest those reserves and make contractual payments. Fees are based on the expected incidence of the insured risk and the expected return on investment. Establishments that are primarily engaged in providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs. In addition, establishments charged with monetary control - the monetary authorities - are included in this sector. Real Estate and Rental Leasing (NAICS 53) This sector comprises establishments primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets. Establishments primarily engaged in managing real estate for others; selling, renting and/or buying of real estate for others; and appraising real estate, are also included Professional, Scientific and Technical Services (NAICS 54) This sector comprises establishments primarily engaged in activities in which human capital is the major input. These establishments make available the knowledge and skills of their employees, often on an assignment basis. The main components of this sector are: legal services industries; accounting and related services industries; architectural, engineering and related services industries; surveying and mapping services industries; design services industries; management, scientific and technical consulting services industries; Town of Ajax Economic Development + Tourism Strategy 161 P age

162 scientific research and development services industries; advertising services industries. The distinguishing feature of this sector is the fact that most of the industries grouped in it have production processes that are almost wholly dependent on worker skills. In most of these industries, equipment and materials are not of major importance. Thus, the establishments classified in this sector sell expertise. Management of Companies and Enterprises (NAICS 55) This sector comprises establishments primarily engaged in managing companies and enterprises and/or holding the securities or financial assets of companies and enterprises, for the purpose of owning a controlling interest in them and/or influencing their management decisions. They may undertake the function of management, or they may entrust the function of financial management to portfolio managers Educational Services (NAICS 61) This sector comprises establishments primarily engaged in providing instruction and training in a wide variety of subjects. This instruction and training is provided by specialized establishments, such as schools, colleges, universities and training centres. These establishments may be privately owned and operated, either for profit or not, or they may be publicly owned and operated. They may also offer food and accommodation services to their students. Health Care and Social Assistance (NAICS 62) This sector comprises establishments primarily engaged in providing health care by diagnosis and treatment, providing residential care for medical and social reasons, and providing social assistance, such as counselling, welfare, child protection, community housing and food services, vocational rehabilitation and child care, to those requiring such assistance. Arts, Entertainment and Recreation (NAICS 71) This sector comprises establishments primarily engaged in operating facilities or providing services to meet the cultural, entertainment and recreational interests of their patrons. These establishments produce, promote or participate in live performances, events or exhibits intended for public viewing; provide the artistic, creative and technical skills necessary for the production of artistic products and live performances; preserve and exhibit objects and sites of historical, cultural or educational interest; and Town of Ajax Economic Development + Tourism Strategy 162 P age

163 operate facilities or provide services that enable patrons to participate in sports or recreational activities or pursue amusement, hobbies and leisure-time interests. Accommodation and Food Services (NAICS 72) This sector comprises establishments primarily engaged in providing short-term lodging and complementary services to travellers, vacationers and others, in facilities such as hotels, motor hotels, resorts, motels, casino hotels, bed and breakfast accommodation, housekeeping cottages and cabins, recreational vehicle parks and campgrounds, hunting and fishing camps, and various types of recreational and adventure camps. This sector also comprises establishments primarily engaged in preparing meals, snacks and beverages, to customer order, for immediate consumption on and off the premises Public Administration (NAICS 91) This sector comprises establishments primarily engaged in activities of a governmental nature, that is, the enactment and judicial interpretation of laws and their pursuant regulations, and the administration of programs based on them. Legislative activities, taxation, national defence, public order and safety, immigration services, foreign affairs and international assistance, and the administration of government programs are activities that are purely governmental in nature. Other Services (NAICS 81) This sector comprises establishments, not classified to any other sector, primarily engaged in repairing, or performing general or routine maintenance, on motor vehicles, machinery, equipment and other products to ensure that they work efficiently; providing personal care services, funeral services, laundry services and other services to individuals, such as pet care services and photo finishing services; organizing and promoting religious activities; supporting various causes through grant-making, advocating (promoting) various social and political causes, and promoting and defending the interests of their members. Private households are also included. Town of Ajax Economic Development + Tourism Strategy 163 P age

164 Town of Ajax Economic Development + Tourism Strategy 164 P age

165 Appendix III National Occupation Classification (NOC) Definitions Town of Ajax Economic Development + Tourism Strategy 165 P age

166 Town of Ajax Economic Development + Tourism Strategy 166 P age

167 National Occupation Classification (NOC) Definitions Management Occupations Occupations in this broad occupational category are primarily concerned with carrying out the functions of management by planning, organizing, coordinating, directing, controlling, staffing, and formulating, implementing or enforcing policy, either directly or through other levels of management. Supervising is not considered to be a management function. Business, Finance and Administrative Occupations Occupations in this broad occupational category are primarily concerned with providing financial and business services, administrative and regulatory services and clerical support services. Natural and Applied Sciences and Related Occupations Occupations in this broad occupational category are primarily concerned with conducting theoretical and applied research and providing technical support in natural and applied sciences. Health Occupations Occupations in this broad occupational category are primarily concerned with providing health care services directly to patients and providing support to health care delivery. Occupations in Social Science, Education, Government Service and Religion Occupations in this broad occupational category are primarily concerned with law, teaching, counselling, conducting social science research, providing religious services, and developing and administering government policies and programs. Occupations in Art, Culture, Recreation and Sport Occupations in this broad occupational category are primarily concerned with providing artistic and cultural services and providing direct support to the service providers. Sales and Service Occupations Occupations in this broad occupational category are primarily concerned with selling goods and services and providing personal, protective, household, tourism and hospitality services. Trades, Transport and Equipment Operators and Related Occupations Occupations in this broad occupational category are primarily concerned with contracting, supervising and doing trades work; and supervising and operating transportation and heavy equipment. Occupations Unique to Primary Industry Occupations in this broad occupational category are primarily concerned with operating farms and supervising or doing farm work; operating fishing vessels and doing specialized fishing work; and in doing supervision and production work in oil and gas production and forestry and logging. Town of Ajax Economic Development + Tourism Strategy 167 P age

168 Town of Ajax Economic Development + Tourism Strategy 168 P age

169 Appendix IV Ajax Economic Development Survey and Tourism Survey Results Town of Ajax Economic Development + Tourism Strategy 169 P age

170 Town of Ajax Economic Development + Tourism Strategy 170 P age

171 Town of Ajax Economic Development Survey Results Total number of respondents (02/16/10): Are you responding as a: Executive for a Non-profit 3.1% Manager/Operator of an Ajax business 10.9% Ajax business owner 85.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: Town of Ajax employee, resident 2. What is your primary type of business? Public administration Other services (except public administration) Accommodation and food services Arts, entertainment and recreation Health care and social assistance Educational services Administrative and support, waste management Management of companies Professional, scientific and technical services Real estate and rental and leasing Finance and insurance Information and cultural industries Transportation and warehousing Retail trade Wholesale trade Manufacturing Construction Utilities Mining and oil and gas extraction Agriculture 4.3% 15.9% 4.3% 4.3% 4.3% 1.4% 0.0% 2.9% 17.4% 7.2% 1.4% 4.3% 1.4% 8.7% 4.3% 8.7% 5.8% 0.0% 1.4% 1.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 171 P age

172 3. How long has your business operated in Ajax? Longer 49.3% 6-10 years 19.4% 2-5 years 19.4% Less than 2 years 11.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 4. How many people do you employ? (full-time or full-time equivalent) More than 100 employees employees employees employees 6-10 employees 4.5% 3.0% 10.4% 3.0% 4.5% 1-5 employees 74.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 5. What was the approximate revenue for your company in the previous year? Greater than $40 million $20 million - $40 million $10 million - $20 million $5 million - $10 million 3.0% 1.5% 1.5% 4.5% $1 million - $5 million 16.4% Less than $1 million 73.1% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 172 P age

173 6. Which of the following best classifies your business ownership? Multinational Corporation 4.8% Owner/Partnership 22.6% Owner/Sole Proprietorship 72.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: Corporation, Provincial Corporation, non-profit, municipal, real estate agent 7. Using a scale of 0 to 10 where 0 is not at all important and 10 is very important, please rate the following criteria to indicate the level of importance each one has in ensuring the GROWTH of your business. Affordable energy costs Availability and quality of high-speed Affordable and efficient waste management Quality of life factors (health care, housing, schools, Access to business services Servicing infrastructure Transportation infrastructure Access to financing Efficient development environment (approvals, etc.) Promotion of Ajax to prospective business Competitive wage rates Availability of a skilled and semi skilled workforce Proximity to supply and/or market chains Low cost facilities in which to start-up businesses Availability of economic development and tourism Availability of affordable housing options Marketing of Ajax to a prospective workforce Access to quality post secondary education, skills Availability of land or buildings (e.g. office, retail, A vibrant and diverse arts and cultural community Marketing of Ajax to prospective tourists/visitors Presence of post secondary institutions Town of Ajax Economic Development + Tourism Strategy 173 P age

174 8. Using a scale of 0 to 10 where 0 is not at all satisfied and 10 is very satisfied ; please rate the following criteria to indicate the level of your satisfaction with the Town of Ajax as a place to OPERATE a business. Availability and quality of high-speed Access to business services Quality of lifestyle factors (health care, housing, Competitive wage rates Availability of land or buildings (e.g. office, retail, Access to financing Availability of a skilled and semi skilled workforce Access to quality post secondary education, skills Availability of economic development and tourism Promotion of Ajax to prospective business Marketing of Ajax to a prospective workforce Affordable and efficient waste management Availability of affordable housing options Presence of post secondary institutions Marketing of Ajax to prospective tourists/visitors Affordable energy costs A vibrant and diverse arts and cultural community Efficient development environment (approvals etc.) Low cost facilities in which to start-up businesses Town of Ajax Economic Development + Tourism Strategy 174 P age

175 9. Using a scale for 0 to 10 where 0 is not at all important and 10 is very important ; please rate each criterion to indicate the level of importance for your business in the next 3 years. Availability of telecommunication services Strategic marketing Energy costs Business planning Market development, locally Market development, outside local area Improved customer service Improving worker productivity Water/sewer availability Workforce skill development Availability of labour Water/sewer costs Workforce health and safety Exchange rate for Canadian dollar Industry/professional standards Accessing capital Strategic alliances (joining with other businesses) Product research and development Add or change in products or services Resolution of cross border issues Access to importing of products & services ISO 9000/14000 or HACCP management Access to exporting and international markets What is your general impression of Ajax as a place to do business? Poor 6.5% Fair 34.8% Good 47.8% Excellent 10.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other Comments: Costs: Very high property taxes and heating costs; taxes way too high. Business Environment: Need to attract more (high profile) industry; town should try to get more quotes/sources locally for construction; difficult for small businesses to compete on salary with some major employers; communication in and between Town needs overhaul too much red tape; car-only city; lacks an open for business reputation; need more variety of businesses. Town of Ajax Economic Development + Tourism Strategy 175 P age

176 11. What is the primary reason for locating your business in Ajax? Location: Resident of the Town, home based business; convenience of being close to Toronto and the 401 (markets to the east) Business Environment: Available business/office space; economical/lower cost of living; excellent product and service availability; access to workforce in Durham; large 683/686 phone exchange local calling area saves money and time Quality of Life/Place: Waterfront trails and housing location; nice place to live, affordable, and accessible amenities 12. How do you expect your company to perform in the next 18 months compared to the last 18 months? Don't know Much weaker Somewhat weaker 2.2% 6.5% 4.3% About the same Somewhat stronger 34.8% 37.0% Much stronger 15.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 13. Do you have plans to upgrade/expand your Ajax operation in the next 3 years? 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 46.8% Yes 53.2% No Further Comments: In-store facelift/renovations; upgrading equipment to meet customer requirements; looking to relocate (new design-build facility); partnerships with other businesses; rent/construct new building and expand hiring; large expansion, depending on the economy; opening second location locally. Town of Ajax Economic Development + Tourism Strategy 176 P age

177 14. What export markets are you in? European Union Great Britain Japan India China Mexico United States Canada (outside Ontario) 20.0% 13.3% 0.0% 0.0% 6.7% 0.0% 66.7% 86.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other: Australia and the Philippines, Peru, South Africa 15. What export markets are you exploring, or need assistance researching? European Union Great Britain Japan India China Mexico United States Canada (Outside Ontario) 0.0% 0.0% 0.0% 7.7% 0.0% 30.8% 61.5% 46.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other: Global with online presence 16. What percentage of your annual sales is from export markets (outside Ontario)? Greater than 75% 50% - 75% 25% - 50% 3.3% 3.3% 10.0% Less than 25% 83.3% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 177 P age

178 17. How do you currently use the internet for your business? E-commerce 65.1% Product or service research 76.7% Social networking 60.5% Marketing 88.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: service fulfillment; servicing clients; access to libraries, school, communicating with parents, etc. 18. How do you plan on using the Internet for your business in the future? E-commerce Product or service research Social networking Marketing 69.0% 73.8% 66.7% 85.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: service fulfillment; servicing clients; point-to-point customer interaction and web conferencing/meetings; advertising 19. What distinctive assets or advantages does Ajax have on which to build a strong economy? Location & Access: Excellent highway access (401); close to the GTA and Oshawa; proximity to international airport and major border crossings; GO Train and access to 407/Kingston Road to bypass city traffic; easy access to major centres to the East (Ottawa/Montreal) Business Environment: Good location for workforce; availability of land to build on; local support industries in Whitby and Oshawa; access to market activities; affordability; town operating system is accountable to the people, good mayor, and municipal approvals; local telephone area Quality of Life: Smaller size, sense of community; green space and good schools; lower housing costs; waterfront and Lake Ontario; local hospital; amenities could attract skilled labour; good income levels Town of Ajax Economic Development + Tourism Strategy 178 P age

179 20. What opportunities are there to strengthen Ajax and the region s economy? Business Costs: Lower taxes (to attract businesses); lower utility rates; need to resolve residential/commercial tax imbalance Business Development: Should build upon energy-related economy, which would then attract more service businesses; reduce focus on housing; need more innovative mindset among business decision makers; check unrestrained growth of commercial development; continue to develop knowledge workforce; have local staff/councillors visit local businesses Infrastructure: Better transit locally and into GTA (407 to the north); better communications infrastructure; stop sprawl and create integrated live/work areas to reduce reliance on car; better utilize downtown and Pickering Village 21. What challenges will impact the growth of the local economy? External Trends: Loss/decline of manufacturing in Ontario; stability of N.A. economy and in price of oil/fuel costs; downloading of services onto provincial/municipal governments; rising minimum wage. Local Business Environment: Municipal approvals for construction; restrictions on development in certain areas (zoning concerns); need newer, appropriate modern industrial facilities; need to attract professional business/industry instead of just retail/residential development (also affects incomes). Infrastructure: Delays in road construction and maintenance; better regional transit and connections to dense commercial areas; control sprawl; must finish 407 and widen 401 to address gridlock; regional waste disposal; accessibility. Quality of Life/Services: Health care availability of doctors and hospital wait times; crime and safety; municipal taxes too high. 22. Please describe how local business associations and/or economic development offices could assist your business sector? E-marketing Website development Productivity improvement workshops Identify opportunities for shared use of Workforce planning, employee Attraction of related supply/services Joint advertising and marketing Export development programs and services Business networking sessions Trade shows Access to capital seminars Marketing seminars 42.4% 39.4% 27.3% 30.3% 30.3% 33.3% 45.5% 15.2% 36.4% 39.4% 54.5% 69.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 179 P age

180 23. Do you have any additional comments? Very satisfied by current progress and planning of the city. Since meeting the mayor and support staff of the Town of Ajax, I have nothing but a new respect for how the town is being run. Put a by-law in place that makes it mandatory for all retail, offices and other ground level buildings to have some type of vehicle intrusion blocking devices in front areas where vehicles can be driven through the front of a business. One such vehicle intrusion causes enormous damage to the building, the business operation, and the finances of the business. The deductable amount payable by a smaller business can be devastating to their finances. Insurance companies might also give a reduction in rates to businesses that are protected against such an obvious risk. This would make Ajax more appealing to businesses. I believe that the town is trying hard to assist businesses, however right now unexpected costs are hurting industry, with little profits companies are limited in the capital that they can invest. How do you expect any company to invest in Ajax with the high cost of doing business in Ontario plus all of the red tape that is in place? Everything is going up except the profits of the little guy. Challenging to run a business in Ajax, but strong clientele; hope that the Town will take action. Town of Ajax Economic Development + Tourism Strategy 180 P age

181 Tourism Survey Results Total Respondents (02/16/10): Are you responding as a: Community group member 5.7% Resident 90.8% Manager/Operator of an Ajax business Ajax business owner 0.0% 3.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: Town of Ajax employee, resident elsewhere in Durham region 2. What is your primary type of business? Other (please describe) 17.5% Not applicable 70.0% Agri-tourism Arts and culture Food and drinking establishment Accommodation services 0.0% 8.8% 2.5% 1.3% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Other responses: Professional services & consulting; education; retail/reselling; real estate; public service/regional government; IT engineering; healthcare/mobility Town of Ajax Economic Development + Tourism Strategy 181 P age

182 3. How long has your business operated in Ajax? Not applicable 80.3% More than 10 years 6-10 years 2-5 years Less than 2 years 10.5% 3.9% 3.9% 1.3% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 4. How many people do you employ (full-time or full-time equivalent?) Not applicable 76.0% More than 100 employees employees employees 6-20 employees 2.7% 1.3% 2.7% 2.7% 1-5 employees 14.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 5. How long have you lived in Ajax? Not applicable 10.5% Longer than 10 years 47.7% 6-10 years 3-5 years 1-2 years 11.6% 17.4% 12.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 182 P age

183 6. Please rate your level of agreement with the following statement: Ajax has a good overall mix of facilities, activities and events for residents and visitors to see and do. Strongly agree 26.0% Somewhat agree 53.2% Somewhat disagree 18.2% Strongly disagree 2.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Great community centres, libraries, and waterfront parks/trails, especially for residents; waterfront is a real highlight; events and festivals for seniors and youth; good facilities. Negative: Town lacks a true downtown; not much to do outside of dinner/movie/slots; need major sports/amusement/large events and trade shows to attract people to visit; nothing really worth the drive from other regions; more services/facilities needed in north end; parks/trails closed in winter. 7. Please rate your level of agreement with the following statement: Ajax offers a variety of cultural facilities and events to residents and visitors. Don't know/can't answer 7.9% Strongly agree 23.7% Somewhat agree 38.2% Somewhat disagree 25.0% Strongly disagree 5.3% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 183 P age

184 Comments: Positive: Has been improving; modest offers of cultural facilities; waterfront trail event with variety of foods; different multicultural organizations that cater to specific groups; St. Francis will help the arts. Negative: Waterfront needs more activities (volleyball, BBQs, restaurant, pool, tennis); not much in the way of cultural centres to visit; need a museum; lacking live theatre/concert venues; community groups offer more than the Town does. 8. Please rate your level of agreement with the following statement: Ajax offers a wide range of sports facilities and events to residents and visitors. Don't know/can't answer 1.3% Strongly agree Somewhat agree 43.4% 40.8% Somewhat disagree Strongly disagree 7.9% 6.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Great for residents/locals, but need to go outside for bigger events; great fitness facilities; good family facilities. Negative: Closed parks/trails in the winter; no crowd-pleasers/exciting events; need additional facilities for bigger tournaments; more outdoor ice rinks; lacking compared to surrounding communities (e.g. Oshawa). Town of Ajax Economic Development + Tourism Strategy 184 P age

185 9. Please rate your level of agreement with the following statement: Ajax does a good job of interpreting its history to residents and visitors. Don't know/can't answer 7.9% Strongly agree Somewhat agree 32.9% 38.2% Somewhat disagree 17.1% Strongly disagree 3.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Ajax does a great job explaining its heritage and helping us appreciate our beginnings. Negative: Wouldn t know where to find/haven t heard about it; need to look for it, only if you run across it; could use more interpretative signs, plaques on original buildings/housing; need a museum and full-time heritage planner to better communicate history. 10. Please rate your level of agreement with the following statement: Ajax offers a good variety of facilities and support services for meetings, conventions and events. Don't know/can't answer 6.8% Strongly agree 32.4% Somewhat agree 44.6% Somewhat disagree Strongly disagree 5.4% 10.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 185 P age

186 Comments: Positive: Great library facilities; one of a kind convention centre; community centres seems like we have enough/they cater to the Town s needs. Negative: Town-owned facilities not adequate for conventions, weddings, conferences etc. need to go to higher price, privately owned facilities. 11. Please rate your level of agreement with the following statement: Ajax offers a good range of high quality and distinct restaurants to residents and visitors. Don't know/can't answer 1.3% Strongly agree 25.0% Somewhat agree Somewhat disagree 28.9% 35.5% Strongly disagree 9.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Have some good ones but mostly franchises; a few good family-run, higher end places; lots of variety and affordability. Negative: Mostly chain/franchise/fast-food restaurants with mass-appeal menus; could use more exclusive/high-end/distinct restaurants; need more privately-owned establishments; more diversity. Town of Ajax Economic Development + Tourism Strategy 186 P age

187 12. Please rate your level of agreement with the following statement: Ajax offers a good range of high quality and distinct shops to residents and visitors. Strongly agree 11.8% Somewhat agree Somewhat disagree 35.5% 40.8% Strongly disagree 11.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Enough in shopping centres to cater to needs of everyone; Costco is a draw. Negative: Very few non-franchised stores many of these are closing; many big box stores, urban sprawl chains; nothing distinctive must go outside Ajax for this (i.e. boutiques, exclusive shops); could use an indoor mall, less strip malls. 13. Please rate your level of agreement with the following statement: Ajax offers a good range of entertainment opportunities (e.g. live music, theatre, concerts, etc.) for residents and visitors. Don't know/can't answer Strongly agree 3.9% 5.3% Somewhat agree Somewhat disagree Strongly disagree 26.3% 31.6% 32.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 187 P age

188 Comments: Positive: Completion of St. Francis Centre will improve this greatly. Negative: Never heard of concerts coming to Ajax; could be expanded, not much night life; need to expand venues for concerts, performing arts, live theatre, seating at least 3,500-5,000; average in comparison to other jurisdictions; could always use more. 14. Please rate your level of agreement with the following statement: Overall, Ajax is an attractive place to visit. Don't know/can't answer 2.7% Strongly agree 17.6% Somewhat agree 56.8% Somewhat disagree 16.2% Strongly disagree 6.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Nice for visiting family and friends; good walking areas; beautiful town; waterfront trail/trail system is most attractive feature, very beautiful; great to live in; nice place to take a walk. Negative: Unattractive view/shops off of Hwy. 2, and from the 401 BIA between Harwood and the 401; downtown needs a lot of work; could do more with waterfront like amphitheatre, live concerts, nothing to draw outside of family/friends; need to drive everywhere. Town of Ajax Economic Development + Tourism Strategy 188 P age

189 15. Please rate your level of agreement with the following statement: Overall, Ajax does an effective job of branding the community and promoting itself to visitors outside of Ajax. Don't know/can't answer Strongly agree 10.4% 15.6% Somewhat agree Somewhat disagree 28.6% 35.1% Strongly disagree 10.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Comments: Positive: Well branded within the town; good relating to historical branding; fantastic job branding the community. Negative: People who live outside Ajax don t really know about it even have negative reactions; known as a sleeper town; don t appear to have a strong image or drive-by presence on 401; don t know of any incentives to visit the area. 16. (For residents only): If you have visitors, and you want to take them out for an evening, where are you most likely to go. Don't know/can't answer 2.8% We'd likely stay at home 27.8% Place(s) outside of Ajax 45.8% Place(s) in Ajax 23.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Town of Ajax Economic Development + Tourism Strategy 189 P age

190 Inside the Town: Walk/hike through waterfront trails; walk in Pickering Village; Greenwood Conservation Area, Rotary Park (in warm weather); OLG slots at Ajax Downs and the racetrack. Outside the Town: Would take them to Toronto; would go to Whitby (better pubs, restaurants); need some better high-end dining, especially on the waterfront; go to theatre (no good ones in Ajax). 17. Listed below are a number of sectors or types of businesses in the tourism industry. We d like your thoughts as to whether these represent opportunity areas for Ajax to grow and further develop the tourism industry. For each, please indicate whether you think there may be an opportunity to develop and promote this type of tourism Ecotourism Meeting and Conventions Sports tourism Events tourism Culinary tourism Visiting Friends and Relatives Educational tourism Historic tourism Cultural tourism Shopping tourism Adventure tourism Getaway weekends Agricultural / rural tourism Celebrity tourism 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Can t Say / Don t Know Little to no opportunity Some opportunity Strong opportunity Town of Ajax Economic Development + Tourism Strategy 190 P age

191 18. What do you see as the appropriate role of the Town of Ajax in supporting the kind of tourism development and promotion you have indicated above (please check as many as apply)? Assisting start up businesses in the industry Provide financial incentives and support to the industry Promoting the community to tourists and visitors Encourage above tourism sectors through active recruitment Encourage above tourism sectors through policy and assistance 40.3% 40.3% 71.6% 68.7% 55.2% No role (all private sector) 3.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Further Comments: Lower taxes to new tourism-related businesses (shopping, event centres, etc.); have a better profile on the Town website; identify and promote what is already here first 19. Do you have any additional comments? Attractions: Good community events and facilities for youth and families; more focus on parks, community centres, gathering places and museums; more event centres for both local community and tourists, and low cost centres for teens and families that are well supervised; more large event infrastructure (e.g. hotels, restaurants, swimming pool, track and field (to lure larger events); Pickering Village could be better developed as a tourist attraction. Transit and Infrastructure: Too many cars on the road need a better public transit/bike/pedestrian system; trails could be maintained in the winter; there are walk-able areas that are safe, but too disconnected; especially bad planning/traffic on Highway 2; poor signage/visibility of the town, e.g. for bikes on the waterfront trail, to direct them to businesses. Perceptions: Many see Ajax as a bedroom community for Toronto; even locals would be hard pressed to name the Town s main draws; beautiful town to live, but difficult to see tourism as a strong economic base; tough to sell anything unique about Ajax. Town of Ajax Economic Development + Tourism Strategy 191 P age