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HomeMy WebLinkAboutPLN 03-16From: Thomas Melymuk Director, City Development Subject: Seaton Employment Lands Report to Executive Committee Report Number: PLN 03-16 Date: March 7, 2016 Pickering Innovation Corridor-A Sector Analysis Study for Seaton Employment Lands File: D-1100-094 Recommendation: 1. That Council receive the Pickering Innovation Corridor-A Sector Analysis Study for Seaton Employment Lands Report, prepared by MOB Insight, dated January 2016; 2. That Council direct staff to review the Recommendations in the MOB Insight Report, and develop a detailed implementation strategy for Council's consideration; 3. That a copy of the Pickering Innovation Corridor-A Sector Analysis Study for Seaton Employment Lands Report be forwarded to Infrastructure Ontario (Seaton Land Division) for consideration as it moves forward with the disposition of its developable land holdings in Seaton; and 4. That a copy of Report PLN 03-16 be forwarded to the Ministry of Economic Development, Employment and Infrastructure (Investment Division), The Greater Toronto Marketing Alliance (GTMA), and the Region of Durham for their information. Executive Summary: The purpose of this Report is to present the results of the Pickering Innovation Corridor-A Sector Analysis Study for the Seaton Employment Lands Report, prepared by MOB Insight (MOB) and to seek direction to review the Report's recommendations and develop a detailed implementation strategy for Council's consideration. The Seaton Employment Lands (also referred to as the Pickering Innovation Corridor), is one of the largest prestige employment areas in Canada, and represents the City's most significant opportunity to accommodate new businesses and jobs in the near future. In June 2015, the City retained MOB to complete a Sector Analysis Study for the Pickering Innovation Corridor. The scope of work included identifying industry sectors suitable to achieving desired employment targets. · PLN 03-16 March 7, 2016 Subject: Seaton Employment Lands Page 2 MDB identified three target sectors based on a thorough industry analysis of provincial, regional and local economic drivers, labour force characteristics, and emerging growth sectors. These sectors are: Advanced Manufacturing, Information and Communications Technology (ICT) and the EN3 and other Professional Services Sector (Engineering, Environmental and Energy). A copy of MOB's Report has been provided under separate cover and a summary of the Report and its recommendations are included as Attachment 1 and Attachment 2. It is recommended that Council receive the MDB Report, and that staff be directed to develop a detailed implementation strategy for Council's consideration. Financial Implications: The study was funded from the Seaton Development & Implementation Assistance Account 2611.2392.0002. The funds in this account were collected through planning application fees submitted by the Seaton landowners. The total project cost was $45,115.00, including HST. 1.0 Background 1.1 In May 2006, the Province of Ontario approved the Central Pickering Development Plan. The plan provides the framework for the development of the Province's substantial holdings known as the Seaton Lands. In accordance with the plan, the northern area of the Seaton lands is designated for prestige employment, which includes over 800 acres of lands fronting both the north and south sides of Highway 407. 1.2 In December 2014, the City retained Hemson Consulting (Hemson) to update the 2007 Highway 407 (Seaton Lands) Economic Development Study (prepared as input to the preparation of neighbourhood plans). The updated report evaluated the challenges and opportunities to the development of the Seaton employment lands in the context of a revised outlook for employment lands in the Greater Toronto Area (GTA). 1.3 Following the Hemson update, MDB was retained by the City in June 2015, to undertake a sector analysis study to identify opportunities for economic development in the Seaton employment lands. 2.0 Discussion 2.1 The Sector Analysis Study will assist in developing strategies to attract new businesses and highly skilled jobs to Seaton The intent of the Sector Analysis Study is to identify priority opportunities and the appropriate range of support structures, programs and resources that facilitate employment growth. PLN 03-16 March 7, 2016 Subject: Seaton Employment Lands Page 3 This in turn would assist in attracting new businesses, creating highly skilled jobs, and providing the opportunity for existing businesses to relocate or expand their business operations in Seaton. The Executive Summary of the MOB Study is attached as Attachment #1. 2.2 A three step process was employed by MOB to identify the underlying conditions of Pickering's economy As part of the Sector Analysis Study, MOB evaluated Pickering's economy by assessing the City's performance against a range of economic indicators combined with an analysis of current and emerging business and industrial investment trends and input from the community at large. The approach employed for the study consisted of the following: • background review and industry analysis including an assessment of current labour forces, employment and business trends in Pickering, Durham Region, and Ontario • comprehensive profiles of key target sectors for the Pickering Innovation Corridor • input from key business and community stakeholders in the form of one-on-one interviews, intended to offer insight into the strengths, weaknesses, opportunities and threats 2.3 MOB reviewed the economic trends across the Greater Toronto and Hamilton Area (GTHA} and highlighted the emergence of disruptive technology The affects of the 2008/09 recession changed the landscape of many traditional economic sectors across the GTHA. The decline in the manufacturing sector resulted in significant instability for Ontario's economy. The post-recession recovery in the GTHA was a result of how the region's economy shifted towards the service and goods movement sectors. In Pickering, results of the industry analysis highlighted employees moving away from the traditional manufacturing and construction industries to the more creative based business sectors such as: Information and Communications Technology (ICT), Professional Services, and Scientific and Technical services. Furthermore, MOB noted that municipalities are developing strategies to attract disruptive technologies (an emerging technology that displaces an established technology) to further enhance their competitive advantages in efforts to attract investment. The availability of ultra-broadband internet service within the employment nodes in the GTHA is becoming a strong attraction incentive for investments from all major sectors, especially disruptive technologies. PLN 03-16 March 7, 2016 Subject: Seaton Employment Lands Page 4 2.4 An important consideration of the study was input from business and industry leaders Input derived from the stakeholder consultations provided information and perceptions on Pickering's strengths and weaknesses, as well as the opportunities and threats that may be confronting specific industry sectors or the region as a whole. Interviews were held with local and regional developers/realtors, local and regional educational institutions (UOIT, University of Toronto and York University), local business representatives and the Mayor and CAO. 2.5 MOB discussed the positive economic impacts of an airport in Pickering MDB reviewed the findings of the 2010 Pickering Lands Needs Assessment Study completed by Transport Canada. MDB concluded that an airport in Pickering would be an economic catalyst for the City of Pickering and Region of Durham. According to MDB, the airport would have positive economic impacts on local businesses, and stimulate the investment attraction and development of the Pickering Innovation Corridor. 2.6 The preferred target sector uses are supported by the Zoning By-law for the Pickering Innovation Corridor The first phase of the Pickering Innovation Corridor has zoning in place that will accommodate the preferred target sectors identified by MDB. These are: • Advanced Manufacturing -Despite the slower growth of this sector since 2006, the manufacturing base in Pickering remains strong in light manufacturing, machinery and fabricated metal production. Regionally, the manufacturing industry has grown steadily, adding value-added subsectors of aerospace, electronics, medical devices, and transportation equipment. With the network of supply chain and support businesses across Durham Region and the bordering communities of Markham and Scarborough, the Pickering Innovation Corridor will be an attractive location for advanced manufacturers. • Information and Communication Technology (ICT) -The City's ICT sector has seen steady growth, as businesses in Pickering support the emergence of the digital technology industry across Durham Region. Both UOIT and Durham College have been recognized as leaders in program offerings in digital media, IT security, gaming, software development, and picture production. With proximity to Markham and Downtown Toronto, the Pickering Innovation Corridor presents an attractive location for future ICT businesses. • Energy, Environmental and Engineering Services {EN3), and other Professional Services -Pickering has always been home to a strong labour force in the EN3 Sector. Since 2006 there has been a solid growth in the EN3 sector through business retention and expansion efforts. PLN 03-16 Subject: Seaton Employment Lands March 7, 2016 Page 5 Pickering Nuclear Generating Station (PNGS) has been a catalyst in the development of a supply chain of businesses within the EN3 sector for Pickering. Further, OPG recently announced their plans to extend the operations of PNGS to 2024, which will then be followed by extensive work involved with the shut down and decommissioning of the plant. 3.0 Next Steps 3.1 MOB's Recommendations will be reviewed by staff and a detailed implementation strategy will be prepared for Council's consideration A key finding of the MOB Study was the need to distinguish Seaton and the Pickering Innovation Corridor from other competitor's employment lands across the GTHA (see Attachment #2) by advancing the creation of an innovative intelligent community network (ultra-broadband, smart grids, district energy). MOB has recommended an action plan that is designed to assist the City in transforming the Seaton employment lands into a smart community to attract the targeted sectors. Staff will review the action plan and develop a detailed implementation strategy for Council's consideration. The implementation strategy will consider each ofthe recommended actions and outline how best to integrate the actions into the City's economic development work program in 2016 and subsequent years. In terms of the required actions, particular consideration will be given to: • engaging key internet providers, and encouraging the installation of appropriate infrastructure to support ultra-high speed broadband connectivity in Seaton • continuing to participate in foreign direct investment and trade mission programs, in partnerships with Durham Region and Greater Toronto Marketing Alliance • generating sector profiles that highlight local business and regional assets (i.e. labour force and local business data, post-secondary skilled trade programs, regional assets that support business growth) • developing marketing materials that highlight the competitive advantages of the Pickering innovation Corridor Economic Development staff will review the remaining action items outlined in the recommendations by MOB for consideration as part of the detailed implementation strategy. Staff will also work closely with Infrastructure Ontario (Seaton Land Division) to ensure that the Sector Analysis Study is made available to potential purchasers of its developable land holdings. PLN 03-16 Subject: Seaton Employment Lands Attachments: March 7, 2016 Page 6 1 Executive Summary, The Pickering Innovation Corridor-A Sector Analysis Study for Seaton Employment Lands Report, prepared by MDB Insight, dated January 2016 2 Recommendations, The Pickering Innovation Corridor-A Sector Analysis Study for Seaton Employment Lands Report, prepared by MDB Insight, dated January 2016 Prepared By: I~ J;zy- ~jfz Ja oon, B Comm (Hons), MPM Coordinator, Economic Development ·---Catherine Hodge Coordinator, Economic Development FJ:GM:df Recommended for the consideration of Pickering City Council 0/fkU u Tony Prevedel, P.Eng. Chief Administrative Officer Approved/Endorsed By: 'j1Mt~~~ Grant McGregor, MSc, MCIP, RPP Manager, Sustainability & Economic Development Thomas Melymuk, MCIP, RPP Director, City Development Pickering Innovation C.orridor A sector analysis for Seaton Employment Lands Executive Summary January 2016 ./ /./ ./' // /' I I \ ·\ . \ ' \ \ "\ \./\ .// ./ ./ ) ./~ -~ C"" :>. ~; ~r ~~r ~a .. , -IS' A Executive Summary The goal of this Sector Analysis Study is to optimize Pickering Economic Development Office's capacity to support the development of the Pickering Innovation Corridor. Over the past few decades, Pickering has maintained a burgeoning reputation as a preferred place to do business. The Pickering Innovation Corridor provides the latest opportunity to attract jobs and key businesses to the City. This past July, the City retained MDB Insight to execute a Sector Analysis Study for the Pickering Innovation Corridor. The study assessed the City's current employment sectors, identified new and or emerging business sectors, and identified strategies for attracting and retaining businesses from within the identified sectors to the Pickering Innovation Corridor. A critical component of the study was a series of consultations with key local business leaders, key administrative leaders, and key post-secondary leaders to help better understand the landscape of our local economy, and to gather the intelligence needed to complete some of the critical areas of this study. To this end, this study serves to prioritize the City's economic development opportunities and support them with clear action plans. Each action item presented in this Strategy has specific timelines so they can be prioritized and resourced appropriately. Shifting Trends Providing Opportunities for the Pickering Innovation Corridor There is a sense of optimism when considering the Pickering Innovation Corridor as a future employment generator for the City. The past decade has seen the composition of GT AH's employment gradually shift from a goods-producing economy to a service-producing economy. Many of these growing sectors comprise knowledge-based and creative-class occupations and represent an increasing large share of the employment base on employment lands, most notably in the more heavily populated urban GT AH municipalities. The Pickering Innovation Corridor is zoned as Prestige Employment which lends itself to supporting this increasing large share of creative and knowledge-based employment. The rise of disruptive technologies also brings interesting developments to the Pickering Innovation Corridor. As municipalities across Ontario deal with ever-increasing deficits, the capacity to enhance their MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands DRAFT A competitive advantage in the attraction of new investment through traditional means is fading. As a result, municipalities have begun to consider their support for disruptive technologies (such as cloud technology, advanced robotics, energy storage, advanced materials), as tools to increase competitive advantages. There can be no doubt that technology and innovation will continue to shape the global economy and society as a whole over the coming decade. Pickering Innovation Corridor is presented with an opportunity to be a leader in the use of disruptive technology as a competitive advantage. Local post-secondary institutions such as University of Ontario Institute of Technology are illustrating significant strides in the next generation of technological advantages. Fostering partnerships with these think tanks will allow the City's Economic Development office to transform their research into economic advantages for the Pickering Innovation Corridor. The impending closure of the Pickering Nuclear Generating Station and the proposed Pickering Airport Site also provide two distinct industries (and their respective value chains) opportunities for Pickering's economy. The former introduces an interesting context that is fairly limited across the globe. The process of decommissioning a nuclear generation station has been few and far between. This presents Pickering an immediate opportunity to become a centre of excellence for decommissioning work across Canada and the World. While the short term repercussions may be felt immediately (i.e. loss of jobs) the long term gain will see related nuclear-based research (and its extended value chain) opportunities for Pickering. This would aid the continued development of the energy sector in the region. The latter introduces another interesting context that is quite complicated due to the variety of institutional players. Despite these complexities, it is clear the Pickering Airport Site remains a notable opportunity for economic growth in Pickering. Once online the site will demand aerospace activity (and its related value chains) in relative proximity. The Pickering Innovation Corridor is currently zoned to absorb aerospace activity. Identifying Target Sectors for the Pickering Innovation Corridor During the consultation process and sector assessment, MOB Insight identified target sectors that would present the most optimized uses of the Pickering Innovation Corridor. Much of the industry analysis work had been framed by the industry sector analysis and target sector choices in the Highway 407 (Seaton Lands) Economic Development Study. Upon review of the work and in conversations with selected leaders, businesses and institutions it was determined that the Pickering Innovation Corridor would be best to target the following sectors: 2 MOB Insight: Pickering Innovation Corridor· A sector analysis for Seaton Employment Lands DRAFT A • Advanced Manufacturing (including Food Processing) • Information and Communications Technology • Energy, Environment and Engineering Services with other Professional Services Once the target sectors were decided upon a second set of consultations and analysis took place. Distinctive sector profiles were presented that informed the types of activities the Pickering Innovation Corridor would be best suited to foster under each target sector. Additionally, the sector profiles contain the identification of the target sector's existing value chain in Pickering and across the GTAH. The analysis concluded that within advanced manufacturing opportunities best lied within establishments that were using advanced technologies. These manufacturers are investing in innovation and productivity enhancements to move up the value chain into more valuable and research-and-trade intensive products. These are the manufacturers of the future that are immersed in emerging technologies such as digitization, genomics, automation, big data, and 3D printing. The sector profile noted that a number of the advanced manufacturing subsectors in Pickering are already moving towards automated and data- intensive activities, replacing traditional manufacturing. This movement is also supporting other sectors of the economy as advanced capabilities in machinery manufacturing, chemical manufacturing, and fabricated metals are providing real opportunities to support growth in energy generation (e.g. energy structures, batteries/energy storage, metal components), health and biosciences (e.g. chemicals/pharmaceuticals), and multimodal transportation (e.g. aerospace parts, machinery). From this perspective, there are growth prospects for the Pickering Innovation Corridor to capitalize on. The most accommodating of the zoning designations within the employment lands are the lots zoned as Prestige Employment General which allow for light manufacturing and food processing activities amid a variety of other mixed employment uses that include business services and research facilities. This designation provides for a collaborative environment that can be beneficial to many advanced manufacturing finns, in particular, advanced manufacturers that are providing products that support health and pharmaceutical research or aerospace technology. The lnfonnation and Communications Technology (ICT) sector has continued to play an important role in Canada's economy and in Ontario. The ICT sector is comprised of a wide-range of different industries including data processing, telecommunications, video and audio production and recording, and music and video publishing. This makes Canada's ICT sector a diverse and innovative part of the Canadian economy 3 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment lands DRAFT A -one that has grown an average of 2.0% a year over the last five years. In 2015, it is expected that the ICT sector will contribute $72.7 billion to Canada's GOP. This makes it one of Canada's fastest growing sectors since 2008. Activity in the ICT sector is primarily driven by deployment of IT into other sectors, and integration with processional services consulting activities. Though Pickering has access to notable education and research assets in the sector, the majority of the sector has developed as locally-facing, developing and deploying niche applications and solutions in other business sectors. Big data continues to drive innovation, competitiveness, and productivity in the sector and related business sectors (e.g. finance, government, health care). ICT businesses continue to blur sector lines and boundaries through integration with other business sectors, while rationalization and consolidation, mergers and alliances, out-sourcing and offshoring, security concerns, and polarization of IT skills continue to shape the sector. Notably, in Pickering, IT capacity is deployed in other sectors like advanced manufacturing (e.g. Nelson Industrial) and energy (e.g. Veridian Connections). Mississauga and Markham have historically attracted larger maturing tech companies due to their ability to host large "campus-style" complexes with cost-effective surplus land and access to educated individuals. IBM and Microsoft did these decades ago, and it continues to be a trend among major ICT based firms. More recently however, ICT firms have been seeking office space that offers transit connectivity, amenities, greenspace and parking. The Pickering Innovation Corridor is a unique location that can quickly accommodate several of the requests that a major ICT based firm is looking for. The Canadian energy sector is continuously being shaped by new supply courses, altered demand levels, and integrated infrastructure development. The energy generation sector is varied across the country and encompasses businesses involved in electric power generation and electrical equipment manufacturing, and support other economic subsectors in construction and professional, scientific and technical services. Several energy-related sectors have undergone significant growth over the past decade. Wrthin the environmental services sectors the greatest growth is expected to occur in the energy-related divisions including energy efficiency, renewable energy generation, alternative fuels, and alternative fuel vehicles. There are a number of research and development, business support, and educational programs in Durham Region and the GTA to support the energy, environmental and engineering (EN3) sector. The ----------------------------------------------------------------------------------------------· 4 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands DRAFT A City and Region have particular strengths in more traditional and proven forms of energy generation, as well as capabilities in manufacturing and construction sectors that expand opportunities in the sector. The success of EN3 establishments also relies on the strength of the City's other professional, scientific, technical, and financial services (other professional services) sector. The City's Professional Services sector encompasses a wide variety of activities, including legal, accounting, consulting, and scientific research and development. Notably, the professional services sector is one of the most stable sectors in Pickering. During the recession, employment in this sector d!d not decline nearly as much as total employment across the City did, and its rebound has been far quicker and stronger than the rebound in total employment. Since July 2009, national employment in this sector has increased by just over 1 million. At the same time the industry has created 141,000 jobs-a full 14% of all jobs created and with average weekly wages in the sector paying 34% more than the national average. Recently, Durham Region and Pickering have been leveraging the strength of Toronto's professional services sector noted by a stronger presence in head and reg ional office activity in the region from these sectors. The prestige-nature of the Pickering Innovation Corridor will offer new opportunities to anchor a range of activity among the EN3 and professional services sectors. Particularly the Pickering Innovation Corridor is well-positioned to accommodate growth in sectors that support the primary strengths and activities densely concentrated in Toronto (e.g. engineering, management consulting, or niche financial services). Market Considerations and Value Proposition for the Pickering Innovation Corridor Success in marketing depends in part on finding the right balance between the strength of messaging and identifying the assets and attributes that can genuinely deliver on that messaging. Though the messaging targeted for the Pickering Innovation Corridor must be consistent with that of the broader region (i.e. GTAH, Durham}, it must also identify key factors that differentiate the community from its closest competitors within that region. In conversations with leaders, businesses and institutions it is clear that City_ must ensure that every effort is made to articulate the potential of these lands through a strong marketing message-both through its own marketing effort and that of the Province and other economic development agencies or organizations (e.g. GTMA Newco). 5 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands DRAFT A A number of existing value propositions for advanced manufacturing, ICT and EN3 have been promoted at the regional level, through organizations like the Greater Toronto Marketing Alliance. The value proposition and marketing considerations for the Pickering Innovation Corridor must leverage these regional strengths, but further develop a value proposition that differentiates the community from its closest competitors in the GTAH. The prestige employment status of the Pickering Innovation Corridor places the highest emphasis on factors characteristic of most knowledge-based industries. As a result, the value proposition should focus on identifying differentiating factors for each· of these key areas (ranked in order): 1. Location 2. Labour force characteristics including business base 3. Education and training 4. Incentives and business support programs Establishing a Set of Recommendations Given the Province's planned disposition of the lands where the Pickering Innovation Corridor is intended to be located within, the City of Pickering is not yet in a position to work directly with the owners/developers of these lands. While the active marketing of the property will be in the hands of the Province and its agent CBRE, there is a significant role for the City in shaping the long term desirability of the lands for business and investors particularly as it relates to the planned infrastructure investment for the Seaton Urban Area, as this will be an important element for distinguishing the Pickering Innovation Corridor from other competitor employment lands across the GTAH. With increasing internet speeds becoming a common element across North American employment areas, the need to advance the creation of innovative intelligent community networks (ultra-broadband, smart grids, district heating) is a key requirement for the development of modern employment areas. The importance of this infrastructure cannot be overstated. It connects residences, workplaces and public institutions to each other and the world. It enables complex projects to be completed faster, buildings to run more efficiently, and residents/employees to access a range of services and opportunities for social interaction. 6 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands DRAFT A The action plan within the study is designed to reflect a number of components surrounding these roles. The plan reflects: • Key target sub-sector opportunities and strategic directions, as outlined in the target sector work. • Key views of Pickering's sector strengths and opportunities, as they relate to value propositions or marketing messages. • Required marketing activities to underpin investment attraction in the sector. • Labour force development initiatives to access emerging opportunities, or address existing skill gaps. • Infrastructure investment that will further support promotional messaging. The action plan is divided into two sections. Section one where appropriate provides recommendations on activities and items that the City will need to consider with regards to the development of the Pickering Innovation Corridor. Section two is divided into sector specific recommendations, as well as cross-sectoral initiatives that have impacts on the investment attraction activities of more than one sector. The implementation of the study will rely heavily on the partnership opportunities that emerge between the City, Durham Region, the local business community, and range of sector-specific and government organizations that can assist with the promotion of the Pickering Innovation Corridor. In addition to outlining the role of the City of Pickering, the action plan highlights partnership opportunities at the local, regional, and national level intended to assist with the implementation of the action plan. In order to assist the City in developing annual business plans, actions are prioritized as high, medium, or low. With that prioritization, a timeframe (short, medium, or long term) is offered for each action to suggest the length of time the City and its economic development partners should focus on to achieve positive outcomes. Understanding that effective strategies measure their success and communicate results of activity, each set of actions is assigned a set of key performance indicators or metrics which may be used to assess progress on the implementation of the proposed actions. Ultimately, the Study provides the City's Economic Development office with a clear vision of the Pickering Innovation Corridor's economic development opportunities, a strong rationale for activity that links objectives to outcomes, and a series of tools and resources that will assist the City in achieving its economic development goals. ----------------------------------------------------------------------------------------------· 7 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands DRAFT I.. 0 -c ·-I.. C/) I.. ""C 0 c co 0 ...J -c c::: Q) E 0 ~ 0 ·-c. .... ca E > w c 0 0 -c::: Cll Q) c: (/) ..... -~ C/) C) C/) c 0 c::: C/) +=i ~ co ·-Cll ""C I.. c: c G) Cll Q) CD E ~ ~ ..... 0 0 E N (.) t) 0 ~ Q) ro ·-(.) :::l D. C/) Q) c: <( 0:: ro ....., A Contents RECOMMENDATIONS 1.1 ACTION PLAN: MARKET CONSIDERATIONS 1.2 ACTION PLAN: SECTOR SPECIFIC RECOMMENDATIONS 1.2.1 CROSS-SECTORAL INITIATIVES 1.2.2 ADVANCED MANUFACTURING INITIATIVES 1.2.3 INFORMATION TECHNOLOGY INITIATIVES 1.2.4 ENERGY INDUSTRY INITIATIVES MOB Insight: Pickering Innovation Corridor -A sector analysis for Seaton Employment Lands-Recommendations 2 5 5 8 10 12 A Recommendations Given the Province's planned disposition of the lands where the Pickering Innovation Corridor is intended to be located within, the City of Pickering is not yet in a position to work directly with the owners/developers of these lands. While the active marketing of the property will be in the hands of the Province and its agent CBRE, there is a significant role for the City in shaping the long term desirability of the lands for business and investors particularly as it relates to the planned infrastructure investment for the Seaton Urban Area, as this will be an important element for distinguishing the Pickering Innovation Corridor from other competitor employment lands across the GTAH. With increasing internet speeds becoming a common element across North American employment areas, the need to advance the creation of innovative intelligent community networks (ultra-broadband, smart grids, district heating) is a key requirement for the development of modern employment areas. The importance of this infrastructure cannot be overstated. It connects residences, workplaces and public institutions to each other and the world. It enables complex projects to be completed faster, buildings to run more efficiently, and residents/employees to access a range of services and opportunities for social interaction. The action plan that follows is designed to reflect a number of components surrounding these roles. The plan will reflect: • Key target sub-sector opportunities and strategic directions, as outlined in the target sector work. • Key views of Pickering's sector strengths and opportunities, as they relate to value propositions or marketing messages. • Required marketing activities to underpin investment attraction in the sector. • Labour force development initiatives to access emerging opportunities, or address existing skill gaps. • Infrastructure investment that will further support promotional messaging. The action plan is divided into two sections. Section one where appropriate provides recommendations on activities and items that the City will need to consider with regards to the development of the Pickering MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands-Recommendations A Innovation Corridor. Section two is divided into sector specific recommendations, as well as cross-sectoral initiatives that have impacts on the investment attraction activities of more than one sector. The implementation of the study will rely heavily on the partnership opportunities that emerge between the municipality, Durham Region, the local business community, and range of sector-specific and government organizations that can assist with the promotion of the Pickering Innovation Corridor. In addition to outlining the role of the City of Pickering, the action plan highlights partnership opportunities at the local, regional, and national level intended to assist with the implementation of the action plan. In order to assist the City in developing annual business plans, actions are prioritized as high, medium, or low. With that prioritization, a timeframe (short, medium, or long term) is offered for each action to suggest the length of time the City and its economic development partners should focus on to achieve positive outcomes. Understanding that effective strategies measure their success and communicate results of activity, each set of actions is assigned a set of key performance indicators or metrics which may be used to assess progress on the implementation of the proposed actions. 1.1 Action Plan: Market Considerations 1. Engage the Province of Ontario/Ontario Realty Corporation in the potential purchase of a portion of the Pickering Innovation Corridor lands as a means to advance the development of the lands. 2 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands-Recommendations High Priority Medium Term Partner Durham Region A 2. Distinguish the Pickering Innovation Corridor by introducing an intelligent community network concept. High Priority Lead a. Provide Ultra-broadband connectivity across the Seaton Urban Area as a way I Medium to advance Pickering's broadband economy. Term b. Investigate the use of District Heating to lower the cost of energy costs for businesses located in the Pickering Innovation Corridor. c. Partner and development a Memorandum of Understanding with UOIT to develop a smart grid network for the Seaton Urban Area that will provide residents and businesses access to efficiency reporting across a set of variables associated with ecological footprints. 3. Engage the Province in locating provincial offices within the Pickering Innovation Corridor. More specifically, look at requesting that the Ministry of Transportation (Ontario) be the main tenant; siting proximity to highway corridors 407 and 401. 4. Engage the Province in advancing public transit to the Seaton Urban Area. Look at advancing GO Transit reach across the upper communities of Durham Region. 3 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands • Recommendations High I Lead Priority Medium Term High I Lead Priority Short Term Durham Region, UOIT, Province of Ontario Durham Region, Province of Ontario, MOT Durham Regional Transit, Province of Ontario (Metrolinx) A 5. Connect with surrounding post-secondary institutions (University of Toronto-High Lead I UOIT, Scarborough, York University-Seneca College and University of Ontario Priority Partner UofT-S, Institute of Technology) to highlight any existing partnerships (with businesses Short Term York or community stakeholders) across the region. UISeneca a. Promote and encourage a collaborative environment between post-secondary institutions and Pickering businesses. b. Highlight post-secondary program and presence in the region. 6. In partnership with Durham Region, promote the development of strong sector High Partner I Durham profiles that highlight local and regional businesses. Priority Support Region a. Highlight quality of labour force, local business base. Short Term b. Highlight quality of local and regional infrastructure investment (existing and planned). c. Highlight results from the Durham_ Region Economic Development Strategy. 7. Connect with the Ajax-Pickering Board of Trade and the Toronto Board of Trade High Lead Ajax- to leverage their business development efforts, partnerships and consulate Priority Pickering relationships. Short Term BOT, Toronto BOT 8. Continue to engage with business stakeholders around the issues and High Lead Durham requirements that face the community and region. Priority Region Ongoing 4 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands -Recommendations A 1.2 Action Plan: Sector Specific Recommendations 1.2.1 Cross-Sectoral Initiatives 1. Work with Spark Centre and Ontario Network of Entrepreneurs (ONE) to build out local connections to the emerging regional and provincial innovation ecosystem, and source resources available through ONE partners (e.g. Ontario Centre of Excellence (OCE), Small Business Enterprise Centres (SBEC), MaRS). a. Develop an online and print client/business pathways tool, which identifies physical and virtual business supports available at each stage of company maturity in Durham Region/Ontario. 2. Promote post-secondary research opportunities that incorporate: • Advanced apprenticeship/training opportunities. • Business and innovation-oriented consulting expertise. • Knowledge-transfer capabilities. • Supply chain engagement structures. • Flexible office and workshop spaces incorporating emerging technologies (e.g. digital manufacturing lab) to support prototype and pilot-oriented fabrication. • Virtual and shared office services. 5 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands-Recommendations High priority Short term High Priority Long term Partner with Spark Centre Support Spark, ONE, Durham Region, MRI, MEDEl, Business Advisory Centre Durham, OCE UOIT, UofT-S, York U/Seneca, Durham Region, Province of Ontario, Durham College A 3. Engage local companies through existing business survey initiatives to undertake a technology audit of the local business base, with the intent of identifying key opportunities for advanced technology integration. 4. Develop an inventory of industry-academic research being conducted at regional institutions and businesses, and market projects to potential partner firms/researchers (e.g. smart energy, mechatronics manufacturing, digital technology). 5. Building on momentum of the Spark Centre, bring together businesses and organizations from different sector councils to create technology-based interest groups that support cross-sectoral collaboration on technology applications and solutions. 6 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands -Recommendations High priority Short term High priority Short term High priority Medium term Partner with Durham Region Lead Support Durham Region, UOIT, Durham College, Ajax- Pickering Chamber of Commerce UOIT, UofT-S, York U/Seneca Spark Centre, Durham Region, existing local technology groups, Ajax- Pickering BOT, Toronto BOT A 6. Encourage participation of business community in export initiatives and missions carried out by government agencies and industry organizations. 7. Build an awareness of Pickering's accomplishments in knowledge-based industries through a broad-based marketing and communications initiative including: • Participation in sector seminars/meetings. • Attendance at trade shows and seminars showcasing technology-based local companies. • Deployment of marketing materials and community profile via website, press releases, social media. Performance Measures: High I Partner priority Short term High I Lead priority Short term • Advanced Manufacturing facility and capital funding attracted from other levels of government • Number of knowledge-based company inquiries • Number of local companies at missions/tradeshows attended • Potential technology integration projects identified • Number of local industry-academic research projects identified • Number of companies using ONE partner resources 7 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands -Recommendations Durham Region, MEDEl, CME MEDEl, DFAIT, Industry interest groups e.g.: Life Sciences Ontario, MaRS, Spark Centre A Potential Sources of Funding and Assistance: • Applied Research and Commercialization Initiative (FedDev Ontario) • High Performance Computing (OCE) • Prosperity Initiative (FedDev Ontario) • Ontario Research Fund (MRI) 1.2.2 Advanced Manufacturing Initiatives 8. Develop strategies to support the integration and development of key emerging technologies among the advanced manufacturing sector in areas such as digital manufacturing, advanced materials, robotics, synthetic biology, or bio-manufacturing. 9. Develop investment attraction strategies around resource based industries that leverage existing strengths in automotive, machinery, and metals. a. Consider trade show (e.g. Western Manufacturing Show, FABTECH, PDAC) participation with Canadian Manufacturers and Exporters (CME) and MEDEl. High priority Short term Medium priority Short term 8 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands -Recommendations Lead/support I UOIT, Durham College, Spark Centre, MaRS, OCE, CME Partner I Durham Region, CME, MEDEl A 10. Support the efforts of local and regional workforce development and educational partners on youth engagement, including: • Generating awareness among youth of careers in manufacturing. • Partnering with school boards to host a symposium for careers in the manufacturing sector. Performance Measures • Number of companies making emerging technology investments • Capital investments ($) in new technology across manufacturing sector • Resource-based investment inquiries Medium I Support priority Long term • Total post-secondary enrollment in engineering and manufacturing programs • Number of industry-academic collaborations 9 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands-Recommendations Durham Region, Durham District School Board, Durham Catholic School Board, UOIT, UofT-S, York U/Seneca A Potential Sources of funding and Assistance: • Colleges Ontario Network for Industry Innovation (CONII) • Export Development Canada • Innovation Demonstration Fund (MRI) • Invest Canada -Community Initiatives (DFAIT) • Market Readiness (OCE) • Collaborate-to-Commercialize (OCE) • OCE-CEMI-NSERC Mining Manufacturing Program (OCE) • Prosperity Initiative (FedDev Ontario) • Scientists and Engineers in Business (FedDev Ontario) • SO Tech Fund (SDTC) 1.2.3 Information Technology Initiatives 11. Promote Pickering's location on the border with the City of Toronto as providing access to a range of national and provincial-level business support organizations (e.g. Entertainment Software Association of Canada, Information Technology Association of Canada, Interactive Ontario, Computer Animation Studios of Ontario, Ontario Media Development Corporation) High priority Medium term 10 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands -Recommendations Lead Durham Region A 12. Build partnerships with innovative local companies to identify and attract High Lead Leading local potential collaborative industry or academic partners, and investors. priority innovators Medium term 13. Target information security and big data companies focused on servicing High Lead MEDEl, DFAIT, advanced manufacturing, health and biosciences, financial investment, priority GTMA Newco, energy, and logistics companies. Short term Durham Region 14. Promote Pickering/Durham's diverse base of advanced and traditional High Partner Durham manufacturing as a con~istent market for new digital technology product and Priority Region service integration and innovation to address productivity and energy issues. Short Term I Performance Measures • Number of knowledge-based businesses • Number of IT-related business expansion projects • Number of IT companies focused on other sectors • Number of inquiries related to IT/Big data Potential Sources of Funding and Assistance: • Business Technology Development Program (FedDev Ontario) • Market Readiness (OCE) • Collaborate-to-C.ommercialize (OCE) • High Performance Computing (OCE) • Invest Canada -Community Initiatives (DFAIT) • Prosperity Initiative (FedDev Ontario) 11 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands • Recommendations A 1.2.4 Energy Industry Initiatives 15. Leverage commercialization channels of Energy Research Centre (ERC) at UOIT and existing supply chains of OPG to identify emerging energy technologies to integrate into investment attraction and small business support programming. 16. Work with existing corporate base (e.g. OPG) and supply chain development efforts (e.g. Organization of Canadian Nuclear Industries) to identify supply chain gaps and strategies to support investment attraction, including opportunities around nuclear refurbishment, nuclear decommissioning and natural gas construction/maintenance 17. Build on fledgling local sustainable energy sector through business expansion and investment attraction activities a. Work with organizations like Clean Tech North, Ontario Sustainable Energy Association to develop awareness of Pickering, and foster relationships in sector b. Work with SPARK Centre and ERC to support new start-ups and grow businesses in emerging technology areas High priority Short to Medium term High priority Short to medium term High priority Short to medium term 12 MOB Insight: Pickering Innovation Corridor. A sector analysis for Seaton Employment lands-Recommendations Lead Lead Lead UOIT, Durham College, OPG Enbridge, OPG, H20 Power, OCI , CME Clean Tech North, Ontario Sustainable Energy Association, MEDEl A Performance Measures • Institutional buy-in for advanced manufacturing nuclear focus • Number of new companies in emerging energy technologies • Number of local companies in energy generation supply chain • Number of local contracts awarded in energy generation sector (maintenance, construction, management, manufacturing) • Number of renewable energy technology companies Potential Sources of Funding and Assistance: • Applied Research and Commercialization Initiative (FedDev Ontario) • Business Technology Development Program (FedDev Ontario) • Market Readiness (OCE) • Collaborate-to-Commercialize (OCE) • Investing in Business Innovation (FedDev Ontario) • Ontario Research Fund (MRI) • Scientists and Engineers in Business (FedDev Ontario) • SD Tech Fund (SDTC) 13 MOB Insight: Pickering Innovation Corridor-A sector analysis for Seaton Employment Lands-Recommendations