Superior Tools for Revitalization 2012 OBIAA Annual Conference April 23, 2012
Agenda Introduction to OMAFRA Regional Economic Development Branch Overview of OMAFRA Tools and Resources Discussion 2
OMAFRA Regional Economic Development Branch The Regional Economic Development Branch (REDB) serves the agriculture sector and rural communities in furthering economic development in rural Ontario. Vision Drivers of innovation and growth for a thriving rural Ontario, agriculture and food sectors. Mission Engage people in developing solutions that drive innovation and growth in rural Ontario, agriculture and food sectors Core Purpose Develop and deliver leading edge economic development resources that support thriving rural, agriculture and food economies. 3
Our Delivery Model for Economic Development program development and client support Economic Development Programs Unit Program Development and Support Client Training Regional Staff Best Practise Research Team Leads Consulting and Network Development Program Implementation Marketing and Outreach Administrative Support & Agricultural Information Contact Center 4
OMAFRA REDB Regional Staff Support communities and organizations coaching, facilitating and developing and executing various economic development strategies Key stakeholder groups are groups willing to affect change, and could include: Rural communities, municipalities, economic development staff and committees Rural business organizations including Chambers of Commerce, BIA s and informal business associations Networks and alliances with an agriculture and rural development focus including energy cooperatives, regional and local food networks and farmers markets and consumer organizations Regional and Provincial economic development organizations General farm and commodity organizations 5
Advisor Roles Agricultural Development Advisors (Northern Ontario) Provide a supporting role for the delivery of community economic development programs. Ministry of Northern Development and Mines has lead responsibility for the delivery of OMAFRA programs Have a broader role with agriculture production knowledge transfer activities including livestock and crop best management practices Responsible for completing regulatory inspections for nutrient and environmental management, and livestock predation Agriculture and Rural Economic Development Advisors (Southern Ontario) Key role is the delivery of agriculture and rural community and economic development resources and services and the promotion of economic renewal, investment, and job creation and retention 6
OMAFRA REDB Advisors Design and deliver economic and community development activities such as: Business Retention and Expansion (BR+E) First Impressions Community Exchange CIRRO Downtown Revitalization Economic Analysis Tools and Best Practices Strategic Planning Local Foods Value Chain Management Quest for New Farm Value Value Plus Agri-Food Innovation Other duties as assigned 7
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Tools and Resources Before we talk about tools and resources, let s talk about how we got there 10
What is Economic Development? Economic Development is a process that influences the growth and well being of a community through such means as job creation, job retention, improved tax base and a reasonable life quality. (Economic Developers Association of Canada) 11
So, What Does Your Economy Look Like? Money Coming Into Community Community Wealth Money Leaving Community 12
Two Basic Approaches to Grow the Local Economy and Increase Local Wealth Community Wealth 1. Bring in New Money Attracting/Starting New Businesses Expanding Existing Businesses Export Development Encouraging visitors to spend money in your community 2. Plug the Leaks Retaining Existing Businesses Buy Local Initiatives 13
Community Economic Development helping communities chart their own course Develops practical, locally-driven strategies to build economic opportunities Enables local organizations and work with local leaders to build capacity and inform their decisionmaking. Builds multi-functional, comprehensive strategies in contrast to individual economic development projects. Integrates economic and community goals to bring about more far-reaching community revitalization. Guided by strategic planning support, service, and analysis CED is a rigorous process 14
OMAFRA Tools and Resources First Impressions Community Exchange Community Economic Analysis Tools Business Retention and Expansion Community Immigrant Retention in Rural Ontario Downtown Revitalization Facilitation/Coaching/Planning Services 15
First Impressions Community Exchange (FICE) First Impressions Community Exchange is a structured and cost-effective process that reveals the first impression a community conveys to potential visitors, investors and new residents. Feedback is given on the community s appearance, services and infrastructure. Since 2005, over 222 communities from across rural Ontario have successfully undertaken this program that has resulted in related community action plans. 16
First Impressions Community Exchange (FICE) building capacity from the ground up Identifies opportunities and challenges for a community to begin developing an economic development strategy. Reveals how a community is perceived by visitors, potential investors or potential new residents. Identifies a community s strengths and weaknesses in critical areas such as: Key government & retail services Education Signage Access/Amenities Recreation Benefits/Outcomes Creates a shared sense of priorities among local leaders Community engagement: champions and teams are identified Sets priorities for local action Tourism development Community revitalization efforts Approaches to attract and retain businesses 17
Community Economic Analysis (CEA) Tools rigorous technical support to understand local economies Local economic data and technical guidance for incorporating economic analysis into strategy development and implementation CED Unit maintains a Statistics Canada database available to Ontario s rural communities Community data on labour force, occupations, business sectors Benefits/Outcomes Identifies: Business sectors that are main sources of wealth creation Business sectors in which a community or region has a competitive strength ED strategies are developed that influence job creation and retention, improved tax base, improved quality of life 18
Considerations When Doing CEA While the CEA Tools are a starting point to understanding the local economy. It is important to remember the following considerations: Data is available at the census sub-division and census division levels No single number represents the local economy. A community should not rely on any single number or piece of information to provide the full picture. Make comparisons among communities. No community exists in isolation. Examine changes over time. Local economic trends should be measured over time to determine the direction of change in the community. Ground truth the analysis with local knowledge. The hard data obtained through analytical techniques should be supplemented with a variety of information sources. 19
Business Profile by Sector - June 2011 / CLIENT Thunder Bay (Census Subdivision) Industry Total ( A ) Indet ( B ) Sub A - B 1-4 5-9 10-19 20-49 50-99 100-1 9 9 200-499 500 + 11 - Agriculture, Forestry, Fishing and Hunting 149 60 89 49 19 6 8 3 1 2 1 21 - Mining, Quarring, and Oil and Gas Extraction 29 7 22 7 4 6 2 1 1 1 0 22 - Utilities 7 1 6 1 1 0 0 0 3 1 0 23 - Construction 615 249 366 178 86 56 33 12 1 0 0 31-33 - Manufacturing 167 59 108 34 33 14 18 6 0 1 2 41 - Wholesale Trade 270 79 191 60 61 44 20 5 1 0 0 44-45 - Retail Trade 694 175 519 137 189 114 50 15 11 3 0 48-49 - Transportation and Warehousing 243 105 138 47 21 30 24 10 4 2 0 51 - Information and Cultural Industries 50 27 23 8 5 3 3 2 2 0 0 52 - Finance and Insurance 383 225 158 67 33 22 32 1 1 2 0 53 - Real Estate and Rental and Leasing 631 479 152 98 24 18 9 3 0 0 0 54 - Professional, Scientific and Technical Services 558 241 317 222 44 26 18 5 2 0 0 55 - Management of Companies and Enterprises 232 205 27 16 2 6 2 1 0 0 0 56 - Administrative and Support, Waste Management and Remediation Services 233 80 153 58 41 35 14 3 1 1 0 61 - Educational Services 74 27 47 13 11 10 6 2 0 1 4 62 - Health Care and Social Assistance 489 83 406 204 83 62 30 9 11 4 3 71 - Arts, Entertainment and Recreation 76 28 48 14 6 14 11 2 1 0 0 72 - Accommodation and Food Services 290 54 236 44 47 66 49 27 2 1 0 81 - Other Services (except Public Administration) 598 182 416 236 101 54 20 3 2 0 0 91 - Public Administration 10 3 7 0 1 0 4 0 1 0 1 20
Business Retention & Expansion (BR+E) breaking down the barriers to local business A systematic business consultation program Focus on understanding needs of local businesses 80% of job growth and investment comes from businesses already in a community Remediation of barriers to business through local action Benefits/Outcomes Job creation/retention, increased tax base, increased investment, more positive business climate Local problems get solved Early warning of expansions and closures Closures are prevented Improved business community relationship 21
BR+E in Ontario Since 2005, 156 BR+E projects have been initiated in 122 communities with over 8,000 business surveys undertaken across rural Ontario to support economic development. 22
Why a Provincial BR+E Program? Critical part of local community economic development Builds capacity Majority of new jobs come from existing businesses 80% of foreign direct investment can be attributed to firms already located here Demonstrates support for and & nurtures an existing resource Key to successful investment attraction Less costly means of job creation Means of improving business climate and community competitiveness 23
BR+E Program Development Goals To provide a structured approach and assist communities with: Building relationships with existing business Building relationships with key organizations Addressing urgent business issues early warning mechanism Retaining businesses and jobs, and supporting business expansions Developing & implementing effective business, economic and community development strategies 24
200 180 212 # of Projects 160 140 120 100 80 60 40 Investigate BR&E as an ED strategy Selection of pilot communities and training 10 Pilot projects Development of partnership Development of BR+E Toolkit resources 50 community projects completed 175 people trained as coordinators Program evaluated 50 Survey modifications Online data management system 156 projects in 122 communities since 05; Over 8000 businesses surveyed 20 0 1997 - R & D of BR+E 10 1998 to 2000 - Pilot Phase 2000 to 2004 - Launch of Program 2005 to Present - (Mature Program)
Reach & Impact of the BR+E Program Municipalities Projects: 206 26
Project Workplan: How do you do it? Part A: Part B: Determine the needs and opportunities for business growth in the community (a systematic approach) Develop and implement actions and programs to address the needs and opportunities (community engagement) 27
BR+E Program Resources Coordinator training & certification (2.5 days) Main, sectoral and specialized surveys Web Application Technical support Training manual Resource manual Evaluation manual Team Management manual Multimedia resources Regional support 28
Outcomes of Completed BR+E Projects Over the short term: Improved relationships with business community Solving of immediate problems Improved business climate Identification of specific actions to help businesses Over the longer term: Effective strategic economic development plans Improved business and community competitiveness Increased community capacity for economic development Job and business retention and growth 29
BR+E - The Future Increased number of communities will be incorporating BR+E as part of their economic development strategy post stimulus Additions and modifications to on-line data management system Communities sharing with each other Business service providers becoming engaged Project tracking and monitoring system New surveys: Local food, human capital, creative and cultural, equine, First Nations Next generation BR+E ongoing evolution 30
Extremely high client satisfaction Is BR+E Worth the Effort? Significant actions at the community level to support the business sector Short-term and long-term benefits experienced Emerging rural / remote opportunities? 31
Community Immigrant Retention in Rural Ontario leadership in response to emerging rural ED needs Focus on human capital challenges and opportunities 2011: all net growth in Ontario s workforce will be from new Canadians (StatsCan) Three case studies: Chatham- Kent; Brockville; North Bay Best practices for rural communities facing a decline in human capital Benefits/Outcomes Jobs created/retained attraction and retention of skilled immigrants Community awareness through workshops and media Human capital forms part of a community s economic strategy Funding approval from Federal and Provincial sources Inter-ministry collaboration MNDMF / MCI / MEDT / CIC / MTCU 32
What Is Human Capital? Human capital refers to the attributes of a person from productivity perspectives in an economic context. Often refers to formal educational attainment, with the implication that education is investment. - Hard skills - Soft skills 33
Human Capital Relation to Economy 34
Canada: Human Capital and Labour Force During the past decade, three key factors have shaped Canada s workforce: 1. A demand for skills in the face of advancing technologies and the knowledge based economy. 2. The workforce has become much greyer. The average age has increased. 3. A growing reliance on immigration as a source of skills and labour force growth. Census data show that immigrants who landed in Canada during the 1990s, and who were in the labour force in 2001, represented almost 70% of the total growth of the labour force over the decade. If current immigration rates continue, it is possible that immigration could account for virtually all labour force growth by 2011. 35
Components for Human Capital Strategy Human Capital Attraction and Retention Strategy Youth Retention And Skills upgrade Training Education Encourage people to work after retirement Newcomers Attraction and Retention 36
Community Immigrant Retention in Rural Ontario (CIRRO) Case studies of three communities to build knowledge of how they can address human capital challenges. The initiative supports rural communities to attract and retain skilled immigrants and business investors by building community capacity to utilize best practices and share knowledge with other communities. A key product of the initiative is a Guidebook with ideas for actions other communities might take. 37
Target beneficiaries The Guidebook is designed for economic development officers, municipal officers, community planners, community developers and anyone involved in community economic development in communities which are: self-identified as small at risk of or are experiencing population stagnation looking to revitalize, diversify and/or expand their local economies looking to revitalize the local workforce (e.g. to increase employment) 38
Community Attractiveness Indicators for Newcomers The project is a partnership effort between Rural Ontario Institute, the Ontario Labour Force Training and Adjustment Boards of Ontario (LTABs), Rural Ontario Municipal Association (ROMA) and the province of Ontario (represented through the Ontario Ministry of Agriculture, Food and Rural Affairs, with Ministry of Economic Development and Innovation and Ministry of Training, Colleges and Universities support). The project developed a set of measures that reflect various aspects of a community s attractiveness. These benchmark indicators will be made available as a tool for local stakeholders contemplating strategies and to measure their progress in improving their newcomer attractiveness. Some examples: Economic, Education, Health System Accessibility, House Affordability, Life Quality Indicators. 39
For More Information http://www.omafra.gov.on.ca/english/rural/edr/cirro/index.html 40
Insights and Inspiration into Downtown Revitalization A key underlying question in community economic development is, What do people do all day? 41
Our Case Study Community Downtown Busytown 42
Evidence of Economic Development Activity? 43
Evidence of Economic Development Activity? Commercial/Residential Mix Emergency Services Signage Facades Retail & Service Mix Streetscape Maintenance Infrastructure Improvements Telecommunications Transportation 44
Downtown Revitalization Services building on a community s assets Technical assistance and insight to support rural community efforts to strengthen downtown cores Business Owners Survey; Resident Survey; Business Mix Analysis; Trade Area Analysis Insight and expertise for a market-driven downtown revitalization approach Benefits/Outcomes Job creation/retention Business openings/recruitment of new businesses Decreased commercial vacancy rate Sharpens the competitiveness of existing business owners 45
OMAFRA s History with DR 2004 Three DR Summits across the Province Research Phase Rues Principales National Trust Main Street Center (US) First round of pilots (6 in east) few resources Second round of pilots more resources Today Comprehensive set of resources and training material to assist communities with DR 46
The Downtown Revitalization Initiative Downtown Revitalization is an initiative to stimulate private and public sector reinvestment in traditional commercial districts Historically, downtowns were the major commercial and employment centres. 47
Downtown Revitalization - Background Beginning in the middle of the 20 th century, they began slipping into a downward cycle of disinvestment. Some of the contributing factors: Highway system New housing subdivisions Shopping malls and big-box superstores 48
Because of the factors Downtown Businesses moved out Lost financing support for business development and commercial real estate from downtowns Lacked the collective market focus 49
Cycle of Disinvestment Excess retail space developed Vacancies increase Public perception suffers Rents decline Buildings deteriorate Weaker businesses move in 50
The Downtown Revitalization Initiative Economic Development Management + Leadership Marketing + Promotions Physical Improvements 51
Stage I: Organizing & Scoping Four Stages of the Downtown Revitalization Process Stage II: Collecting & Assessing Stage III: Action Planning & Prioritizing Stage IV: Implementing & Monitoring 52
Evolution of a Revitalization Program Mobilizing Phase Years 0 to 3 Growth Phase Years 4 to 9 Sustaining Phase Years 9+ DOLLARS REINVESTED Vision Partnership Strategies & actions Results that mobilize Success stories Credibility Economic impacts New market trends YEARS OF LOCAL REVITALIZATION PROGRAM ACTIVITY Typical transition point Typical transition point 53
Five Tools to Develop a Market Based Strategy Building & Business Inventory (How many and what businesses are in your downtown?) Business Mix Analysis (What does your downtown do well? What are the opportunities for business growth?) Business Owner Survey (What do business operators think of the downtown?) 54
Five Tools to Develop a Market Based Strategy Customer Origin Survey and Trade Area Analysis (Who shops in your downtown?) Resident Survey (What do residents think about your downtown?) 55
Identifying Business Development Opportunities Develop Market Position Statement & Unique Selling Proposition Assess & identify business prospects using the information from the market analysis tools Develop and implement a business recruitment strategy 56
OMAFRA Support for Downtown Revitalization Advisory services through Regional staff Coordinator s Manual and Resources Training Communities of Practice 57
Keys to successful revitalization initiatives inclusiveness Property owners Business owners Public and elected officials Civic clubs Developers Historic preservation organizations Historic societies Schools Environmentalists Business associations Financial institutions Residents Many more 58
Keys to successful revitalization initiatives diversity Retail Professional services Personal services Wholesale Small industry Government Nonprofit organizations Entertainment Public assembly Transit Housing Education Financial institutions Many more 59
Keys to successful revitalization initiatives measurable Numbers of businesses Types of businesses and land uses Business longevity Numbers of jobs Building occupancy Amounts invested in physical improvements Sales volume Property value Numbers of upper-floor housing units Pedestrian and vehicular traffic volume Attendance at promotional events 60
Finally Facilitation/Coaching/Strategy Development Regional staff are located across Ontario and support communities, businesses and organizations in the use of a wide array of community economic development tools and activities Fail to plan plan to fail Strategic planning for economic and community development Strategic planning and organizational development for organizations and committees Facilitation, partnership development Other duties as assigned 61
Conclusions No strategy or activity is without risk Your analysis should provide you with a strategy that is based on the best information available at the time In addressing any problem, educated people seek only so much precision as its nature permits or its solution requires. Aristotle New information might warrant periodic adjustments in course, but frequent shifts in direction are more often symptomatic of a lack of analysis or trust in the plan 62
Conclusions Community revitalization takes time It is hard work It requires commitment and resources 63
Contact Karen Fischer Agriculture and Rural Economic Development Advisor Regional Economic Development Branch Belleville Regional Office OMAFRA t. 613-962-2655 e. karen.fischer@ontario.ca http://www.omafra.gov.on.ca/english/rural 64