Loading...
HomeMy WebLinkAboutCAO 06-18DICKERING (/)/ Report to Executive Committee Report Number: CAO 06-18 Date: June 18, 2018 From: Tony Prevedel Chief Administrative Officer Subject: Economic Development Study Partnership Opportunity with Canadian Urban Institute - A Strategic Road Map - File: A-1440-001 Recommendation: 1. That Report CAO 06-18 detailing the City's interest in entering into a partnership agreement for an Economic Development Impact Study for the Highway 407 Corridor with the Canadian Urban Institute (CUI) be received; 2. That the City's cost of participating in the partnership agreement of $45,000 be funded by a transfer of $30,000 from the Seaton Application Fee Reserve and $15,000 be charged to the consulting account (2121.2392.0000) and this amount is being entirely funded from the Invest Canada — Community Initiatives Government Grant; 3. That staff coordinate the community engagement aspects of this study with the ongoing Community Engagement study previously approved by Council (CAO 03-18); 4. That staff be directed to send a copy of this Report to the Canadian Urban Institute, Transport Canada, Greater Toronto Airports Authority, Toronto Global and the Region of Durham; and That staff report back to Council upon completion of this study. Executive Summary: For the past few months, the City of Pickering has been in discussions with the Canadian Urban Institute (CUI) with respect to undertaking an economic development study for the Highway 407 Corridor lands. CUI has secured other private sector funding to undertake this study and will be leading and managing this study with the assistance of Dr. John Kasarda and City staff. The Canadian Urban Institute is a non-profit applied research organization, started in 1990, dedicated to achieving healthy urban development. CUI is a recognized leader in delivering impartial, evidence -based research to enable municipalities and agencies in Ontario, Canada and internationally to create stronger, healthier communities. It is anticipated that this study will take approximately 4 months to complete. CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 2 with Canadian Urban Institute As part of this study, CUI will examine the Aerotropolis model for these lands. The Aerotropolis model was developed by a world renowned consultant from the University of North Carolina, Dr. John Kasarda. Aerotropolis is the concept of a City or sub -region in which infrastructure, land use and economy are centered on transportation systems (wealth of connections), including an airport that is surrounded by manufacturers, food producers, business services and other local suppliers. It is critical for the City to move forward with the development of a strategic road map for the Highway 407 Corridor, as it is the last economic opportunity for the City to attract businesses and well -paying jobs. With limited developable employment lands and low vacancy rates for industrial buildings in Pickering's existing business parks, it is anticipated that the Aerotropolis strategic road map will greatly assist the City's Economic Development Office in attracting multinational firms and jobs to the Highway 407 corridor. Financial Implications: The City's $45,000 cost is being funded from 2 non -property tax sources: Seaton Application Fees revenue ($30,000) and ($15,000) from the Invest Canada — Community Initiatives grant. The ICCI Program provides financial support to communities for their foreign direct investment initiatives and activities. By applying this financing strategy, there is no cost to the Pickering taxpayer for participating in this study. Background: In November 2016, Council approved the Official Plan Review: The Environment and Countryside report recommended that the Federal Government expedite the planning and implementation of the proposed airport in Pickering. It was noted within the report that OPA 27 contained policy revisions that were consistent, as this is the last major opportunity for the City to attract businesses and jobs. It was important to ensure greater certainty of the future Pickering Lands site, as it is set to act as a catalyst for economic growth and job creation. In October of 2017, Council supported the motion of the development of an airport in Pickering, subject to the results of the Aviation Sector Study. This recommendation was a part of the Amazon HQ2 bid which focused on attracting multinational firms like Amazon to the Highway 407 Corridor. Within the same report, Council also requested VIA Rail Canada and Metrolinx to move forward with identifying, planning and implementing high frequency rail service on the CN Havelock rail corridor. Earlier this year, Council approved the hiring of Proof Inc. to undertake the community engagement exercise on the Economic Impact & Employment — 407 Corridor. Council recognized the importance of communicating to the residents and businesses of Pickering and abroad the economic potential of the Corridor. Discussion: The Highway 407 Corridor stretches between Sideline 16 to the east, Green River to the west, Uxbridge -Pickering Townline to the north and to the south side of Highway 407. The Corridor includes the lands within the Pickering Innovation Corridor and the Federal Pickering Lands site, which make up approximately 9,400 acres. The uniqueness of this Corridor is unlike any other, including a 400 series highway, access to over 800 acres of employment lands, and an additional 8,700 acres of 'economic development' lands that include uses for employment and a future airport. For the City of Pickering, this Corridor is the last major CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 3 with Canadian Urban Institute economic opportunity to attract businesses and jobs. With very limited inventory of developable employment lands remaining in Pickering's existing business parks, the Highway 407 Corridor is not only the last major economic opportunity for the City, but it has the greatest potential to positively impact Pickering and the surrounding municipalities. As reported earlier this year, staff are actively pursuing the relocation of up to 5 multinational companies to the Innovation Corridor, which could result in the creation of up to 3,000 jobs. Such projects will generate additional taxation revenues for the City and the Region. Through discussions with representatives of the businesses interested in relocating to the Innovation Corridor, City staff have been questioned on the timing of when a decision will be made on the construction of the airport in Pickering. Businesses interested in relocating and/or expanding to the Innovation Corridor have stated that a decision by the Federal Government to move forward with an airport in Pickering would significantly expedite its decision making process, and would make the Pickering Innovation Corridor an ideal location for their respective businesses. The lack of an economic strategic plan for the Highway 407 Corridor will impact the future ability for Pickering to attract well -paying jobs and businesses, and reduce the impact on the residential tax base. Since April 2018, the City has been in active discussion with the Canadian Urban Institute (CUI) regarding the economic potential of the Highway 407 Corridor. The CUI applies knowledge developed over 3 decades of experience in Canada and internationally to visualize data and organize information to understand relationships, generate insights and recommendations to inspire action. CUI staff recognize the unique opportunity and challenges to develop the Highway 407 Corridor for the maximum benefit of the Pickering residents and neighbor municipalities located in Durham and York Region. Through various discussions and research, a general conclusion was reached to explore the application of the Aerotropolis model to the Highway 407 Corridor. Aerotropolis can be defined as a metropolitan sub region in which infrastructure, land use and economy are centered on transportation systems including an airport that connects the supply chain, manufacturing, food producers and business services to their customers. The model was created by Dr. John Kasarda, a former professor at the University of North Carolina and the current Chief Executive Officer of Aerotropolis Business Concepts. CAO 06-18 June 18, 2018 Subject: Economic Development Study Partnership Opportunity Page 4 with Canadian Urban Institute Prepared By: Approved/Endorsed By: 4 Fiaz Jadoon, Ec.D, CEcD, MPM Manager, Economic Development & Strategic Projects FJ:JH Stan Karwowski, MBA, CPA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council aiodi ja,,ta 4( we) Tony Prevedel, P.Eng. Chief Administrative Officer