Edmonton (Alta.) - 2003 - Edmonton's industrial land strategy awards submission_AACIP 2003 ...

Land Supply Industrial Area Plans

Alberta Association Canadian Institute of Planners 2003 Planning Awards Program

Development Approval Financing Infrastructure and Services City Land Development Marketing Partnerships Monitoring

EDMONTON'S

INDUSTRIAL LAND 41:7-- STRATEGY AWARDS SUBMISSION

eiiiionton Planning aril Dewslcpment

The

LIBRARY City of Edmonton

PLANNING AND DEVELOPMENT

@thffontOn PLANNING AND DEVELOPMENT

February 7, 2003

MAILING ADDRESS: 5TH FLOOR, 10250 -101 STREET NW EDMONTON, ALBERTA T5J 3P4

Reference No.: 025205908-001

AACIP AWARDS c/o Don Schultz The City of Calgary Land Use Planning Division #8117 P.O. Box 2100, Station M Calgary AB T2P 2M5 Dear Awards Program Judge: I am pleased to submit Edmonton's Industrial Land Strategy as the City of Edmonton's entry in the 2003 AACIP Planning Awards Program competition.

The Industrial Land Strategy exemplifies a co-ordinated, innovative approach to planning in a large urban municipality, where varied responsibilities and expertise must be brought together to resolve complex issues. The strategy is highly responsive to its civic and regulatory environment and embraces multiple areas of expertise.

The Strategy is the product of excellence in the application of planning practices by the project team, including project design and management, research, analysis, evaluation, consultation and facilitation. The Strategy provides the framework to co-ordinate, focus and regulate municipal actions to ensure that industrial land is readily available to accommodate industrial development.

It also displays an exciting promotional aspect that will help achieve its stated goal of increasing the prosperity of the City and its citizens.

Most significantly, the process of preparing and approving the strategy profoundly and positively affected organizational behaviour, attitudes and priorities with respect to the City's role and responsibilities in industrial development. These changes are embodied in the nine point strategic framework and the implementation program, and are reflected in successes already achieved.

Thank you for your consideration of this work.

Sincerely,

eh4..z.1 Robert Caldwell, MCIP, ACP Manager Planning and Policy Services Branch BC/ Enclosure

SUBMISSION

EDMONTON'S

INDUSTRIAL LAND STRATEGY

SUBMISSION

@iiionton

PLANNING AND DEVELOPMENT

EDMONTON'S INDUSTRIAL LAND STRATEGY

Alberta Association Canadian Institute of Planners 2003 Planning Awards Program

W

ork on Edmonton's Industrial Land Strategy began as strong economic growth prospects were emerging, bringing opportunities for renewed industrial development. Yet evidence was mounting that shortages of industrial land were eroding Edmonton's economic growth potential and limiting future industrial expansion.

Suppliers and consumers of industrial land reported that Edmonton's growing economy was rapidly depleting the supply of serviced industrial land. The rate at which new industrial sites were being developed and brought to the real estate market was not keeping pace with demand.

Expert opinion from a broad cross-section of stakeholders, from land developers to CEOs of industrial businesses, identified obstacles to industrial land development that could be resolved only by a comprehensive strategy.

The Industrial Land Strategy's strategic framework and implementation program were designed to ensure that industrial land will be available to accommodate industrial businesses.

Action by the City will lever and support action by private sector developers, builders, realtors and economic development agents to strengthen Edmonton's position and attractiveness as a major industrial centre.

The Industrial Land Strategy demonstrates excellence in the practice of professional planning.

Excellence in Project Design began with the involvement of people who understood the industrial land development process and real estate market and could identify the issues.

Interviews with City staff set the stage for a facilitated workshop with participants representing industrial land development, industrial building, financing and marketing stakeholders; City departments; private utilities and economic development agencies.

The list of issues produced helped to define the scope of the project. They included:

• The characteristics and roles of existing industrial areas; • The need for new industrial area plans; • Targeting businesses vs. growth of "basic" industries and Edmonton's role in the region; • Availability, cost and standards for servicing, including front-end costs for stormwater management and sanitary sewer infrastructure; • Financial mechanisms for development of industrial land; • Loss of industrial land to other uses; • Conflicting objectives of City policies and initiatives and their impact on industrial land development; • Land requirements of expanding small businesses; • Transportation links for industrial land; and, • The servicing and sale of City-owned land and its role in economic development.

Alberta Association Canadian Institute of Planners 2003 Planning Awards Program

EDMONTON'S INDUSTRIAL LAND STRATEGY

The workshop session also established basic principles for the strategy:

• A clear role for the City and City-owned land; • Co-ordination among City departments, including Economic Development Edmonton; • A strong leadership and advisory body; and • Partnership with the private sector Above all, the workshop and follow-up work demonstrated the need for a comprehensive strategy and an effective implementation program.

City Council and the City's Senior Management Team reviewed and endorsed this finding and approved a project budget and terms of reference in March 2001.

Excellence in Project Management is the result of a project management approach that took full account of the nature and scope of industrial land development issues. It was clear from the preliminary analysis that preceded approval of the terms of reference, that long established practices and policies would be challenged and changed in the course of preparing the Strategy. The project management structure and process provided the means of investigating issues, resolving problems, and developing and initiating new approaches to industrial development.

The City's Senior Management Team (SMT) had overall responsibility for the assignment of resources and strategy endorsement. SMT's most significant role was to create the environment and provide the motivation for a wholesale change in the Administration's approach to facilitating industrial land development.

The core project team from the Planning and Development Department was responsible for the project design, research and administration, and for preparing the strategy for Council approval. The project team's role included project design, process management, research, issue analysis, and identification and validation of new approaches.

The principal function was to create an integrated, comprehensive strategy that could earn the full commitment of the City's Council and Administration to its successful implementation.

Critical to the success of the project was the Directors Coordinating Committee, representing each Branch of the Administration involved in industrial land development. The Committee contributed a wide range of professional expertise and provided the mechanism for evaluating policies and practice, and developing viable alternatives suitable to the City's operating environment.

Regular meetings of the Co-ordinating Committee produced proposals for joint and mutually reinforcing actions that crossed operational boundaries and overcame constraints.

Alberta Association Canadian Institute of Planners 2003 Planning Awards Program 0,

EDMONTON'S INDUSTRIAL LAND STRATEGY

Committee members possessed knowledge, practical experience and years of direct contact with the land development industry on matters involving drainage and transportation engineering, industrial land use planning, development approval processes, municipal finance, corporate policy, and land development, marketing and sales. Additional expertise came from a representative from Economic Development Edmonton, the City's arms length economic development agency.

The Committee members, with the help of the project team, also directed departmental and interdepartmental work teams who addressed specific topics and made recommendations.

Substantial input was obtained through participation by members of the project team and Co-ordinating Committee in Greater Edmonton Competitiveness Strategy (GECS) workshops. GECS is a parallel initiative managed by Economic Development Edmonton. The workshops explored issues related to industrial land development and supporting infrastructure and gathered input from abroad crosssection of individuals.

Unpublished research included comparative analysis of location, quality and price of industrial land, example costs of industrial land development projects and the comparative cost of land development using variable infrastructure standards.

Supply and demand research was used to evaluate the current status of land supplies and to set realistic expectations of the amount and type of land required to accommodate future growth.

The project team and Coordinating Committee used secondary sources of research material, including extensive analysis of Edmonton's industrial base and growth requirements done for the Greater Edmonton Competitiveness Strategy. Quarterly and year-end reports ofmaj or industrial/commercial real estate firms were monitored closely to track industrial property supply in the Edmonton area real estate market.

Excellence in Research and Evaluation was based on intensive, quantitative research on current supplies of industrial land, a ten-year forecast of industrial land demand, based on the growth of existing and prospective industrial businesses, and a twenty-five year forecast of employment growth.

Financial consultants were commissioned to analyze and evaluate the financing of industrial land development. Real estate consultants were contacted to report on approaches to industrial land development in other cities.

,-Uberta Association Canadian Institute of Planners 2003 Planning Awards Program

EDMONTON'S INDUSTRIAL LAND STRATEGY

Excellence in Planning Policy is demonstrated

by Edmonton's Industrial Land Strategy. The Strategy is an enduring and adaptable policy document. It first describes its context and expectations and identifies objectives based on Edmonton's economic development goals. The robust nine point strategic framework is supported by an adaptable implementation program. Both are consistent with municipal roles and responsibilities.

Through the Strategy, the City will invest in the development of infrastructure and land, accepting a manageable level of financial risk consistent with expected increases in municipal revenues and other benefits of economic development.

The City will make these investments to leverage investment and participation by other development interests, both private and public sector.

The Strategy involves areas of municipal responsibility directly related to industrial land development, including land and infrastructure planning and development. It also uses other City assets, such as Edmonton's leading-edge GIS and Internet technology, to market City and private sector industrial land and promote Edmonton as a leading industrial city.

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Key Elements in Edmonton's Industrial Land Strategy

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Streamlined Development Approval Process

Maintaining Land Supply

Planning Industrial Areas

• A 3-year supply of industrial land

• Integrated plans for land use, infrastructure and services • Redevelopment plans for established areas

Financing Industrial Development

Infrastructure and Services

City Land Development

• Assess goods movement Develop strategic routes and arterial roadways • Major drainage projects • Services to businesses

• An active role • Strategic investment • Land acquisition, development and sales • Development partnership

Economic Development Partnerships

Monitoring Supply and Demand

• Adopt new financial methods • Equitable cost sharing • Funding capital projects

Marketing Industrial Land • Active marketing and selling of city properties • Use of G.I.S. and Internet technology

• Public and private sector partnerships • Implement the Greater Edmonton Competitiveness Strategy

• One window service • Information and guidance • Advance discussions • Implement the I Zone

• Vacant industrial land • Industrial development activity

Alberta Association Canadian Institute of Planners 2003 Planning Awards Program k

EDMONTON'S INDUSTRIAL LAND STRATEGY

Edmonton's Industrial Land Strategy establishes new priorities and mandates that will direct actions by the City of Edmonton.

The Strategy: • Is a clear statement by the City that Edmonton is ready to attract and accommodate industrial businesses; • Is a set of linked initiatives to make the industrial land development process more effective and efficient; • Resolves concerns identified by industrial land developers, builders, financiers and business operators; • Is implemented by coordinated actions of City departments; • Encourages cooperation and partnerships with private sector developers, builders and realtors, other levels of government and research and educational organizations; • Establishes an active role by the City to contribute to economic development by stimulating industrial activity through strategic investments, partnerships and the use of City assets; and • Streamlines City processes and supports innovation and new approaches to industrial property development.

Excellence in Implementation requires that the Strategy be consistent with the governance structure, operational responsibilities and priorities of the City and that implementation be aggressively pursued to achieve clear objectives.

The design of the Strategy, a robust strategic framework established by Council and an adaptable implementation program with clear responsibilities for the Administration, is consistent with the City's governance structure. There are strong and direct linkages to the established Capital Budget Priorities Plan which directs all City capital spending.

Separation of strategy from program allows the implementation program to be updated to address changing market conditions, completion of activities and progressive identification of new requirements. Monitoring and reporting to City Council will ensure that the implementation program continues to respond to Council's priorities.

Through its land supply targets and monitoring program, the Strategy is self-regulating, ensuring that City actions in the land market and the development of maj or infrastructure are responsive to market conditions and the land development activities of the private sector.

As required by the Strategy, the City Manager has delegated implementation responsibility to a senior manager, the General Manager of Planning and Development. Two new Strategy implementation positions have been created and filled by a Senior Development Engineer and a Senior Planner.

.Alberta Association Canadian Institute of Planners 2003 Planning Awards Program

EDMONTON'S INDUSTRIAL LAND STRATEGY

A management group, including the Branch Managers of Policy and Planning Services and Development Compliance, as well as the General Manager, Senior Planner and Senior Development Engineer has responsibility for program development and implementation, co-ordination among City departments and agencies, outreach activities and monitoring.

Excellence in Planning Practice is the objective of professional planners throughout North America who face the challenge of sustaining or increasing industrial activity in their municipalities. At stake are employment opportunities for citizens, tax revenues for the municipality, even the identity of the community itself

Although only recently approved, Edmonton's Industrial Land Strategy's impressive record of early achievements reflects both its effectiveness and support from Edmonton's Council and Administration. Some major achievements include: • Changing the Land Management Branch mandate to include an active and strategic industrial land development program.

• Reversing restrictions on the use ofthe City web site to allow the City's GIS and Internet technology to be used for City and private sector industrial property sales.

• Supporting the case for a recently adopted change in stormwater management funding from tax levy based to utility based financing mechanism.

• Initiating work on modified infrastructure standards and new approaches to financing off-site infrastructure for industrial areas.

• Initiating preparation ofone industrial area land use and infrastructure plan in 2002 and two more industrial area plans in 2003.

• Modiffing priorities in the Capital Priorities Plan (Capital Budget) to advance cfrainage and transportation projects that support industrial development.

• Initiating changes to the way the industrial development approval process is managed that recognize that industrial land development is differentfrorn residential land development.

The work of the project team epitomized the planners' role of identifying, analyzing and understanding problems, and fmding creative solutions. The work demanded interdisciplinary skills and a strong co-ordinating and integrating role.

The achievement that sets this Strategy apart from others is the degree to which preparing and adopting the Strategy, and initiating implementation, motivated and contributed to positive changes to organizational behaviour within the City administration. This achievement is the measure of the excellence of Edmonton's Industrial Land Strategy.

Priorities were realigned. Long established practices and policies were overturned. City assets were redeployed. New responsibilities were assumed. New positions were created.

Perceptions and attitudes about the City's role in industrial development were changed. These organizational changes, combined with initiatives reaching out to involve private sector interests, put the City of Edmonton back in the industrial development game as a player planning to succeed.

Alberta Association Canadian Institute of Planners 2003 Planning Awards Programs

LETTERS OF SUPPORT

EDMONTON'S

INDUSTRIAL LAND STRATEGY

LETTERS OF SUPPORT

YOF @fitionton

PLANNING AND DEVELOPMENT

2nd FLOOR, CITY HALL 1 SIR WINSTON CHURCHILL SQUARE EDMONTON, ALBERTA, CANADA T5J 2R7 PHONE (780) 496-8100 FAX (780) 496-8292 EMAIL bill.smith@gov.edmonton.ab.ca

MAYOR BILL SMITH CITY OF EDMONTON

February 5, 2003

AAC1P AWARDS c/o Don Schultz The City of Calgary Land Use Planning Division #8117 P.O. Box 2100, Station M Calgary, AB T2P 2M5 Dear Mr. Schultz: I am delighted to give my wholehearted endorsement to Edmonton's Industrial Land Strategy as a City of Edmonton entry in the Alberta Association Canadian Institute of Planners 2003 Planning Awards Program competition.

Edmonton's Industrial Land Strategy is an excellent solution to a concern I had that Edmonton's rapid economic growth was promising to surpass our ability to provide land to accommodate industrial businesses. I am now confident that implementation of the Strategy will continue to provide opportunities for prime industrial sites and attractive development opportunities to accommodate the growth of our existing industrial businesses and attract new businesses to Edmonton.

City Council gave unanimous approval to the Strategy and we will continue to monitor and support its implementation. Council members are especially pleased to see a co-ordinated effort by the City Administration to develop and employ an approach that integrates the activities of City departments and partner agencies. The Strategy will also facilitate activity and investment by private sector developers, builders, realtors and industrial business operators.

The Industrial Land Strategy is an important reason why Edmonton will continue to grow and prosper as one of Canada's leading industrial cities.

Yours truly,

Stephen Mandel Deputy Mayor

EDMONTON REAL ESTATE BOARD CO-OPERATIVE LISTING BUREAU LIMITED

20th June 2002

www.ereb.com

Larry Benowski General Manager The City of Edmonton Planning and Development Department 5 th Floor, 10250 - 101 Street NW Edmonton, Alberta T5J 3P4 Dear Mr. Benowski: I am writing on behalf of the Edmonton Real Estate Board, as Chairman of the Commercial Division, to express our support of the Industrial Land Strategy.

Upon review of the document and after meetings between representatives of our respective administrations, we are excited by the potential this program provides, and pleased to deepen our relationship with the City by partnering in this Strategy.

As you are aware, the City of Edmonton and the Edmonton Real Estate Board enjoy a relationship that is envied by similar organizations in jurisdictions throughout North America. Because of its intelligence and foresight, we see our support and cooperation with the Industrial Land Strategy as another tenet to enhance our mutually beneficial relationship.

On behalf of the Edmonton Real Estate Board, I strongly urge Council to ratify the Industrial Lund Strategy.

Yours truly,

Jim K ak ector & Chairman EREB Commercial Division /lc cc.

Mayor Bill Smith, City of Edmonton Al Maurer, City Manager, City of Edmonton Gord Jackson, Senior Planner, City of Edmonton 0 0 2 Ebil f,,

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MULTIPLE LISTING SERVICE'

Direct: Fax: email:

Keith Morrissey (780) 453-9303 (780) 452-4569 keith@ereb.com

Lois Crowell (780) 453-9329 (780) 453-9337 commercial@ereb.com

14220 - 112 Avenue, Edmonton, Alberta • Mailing Address: P.O. Box 25000, Edmonton T5J 2R4 • Phone. (780) 451-6666 • Fax: (780) 452-1135

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INDUSTRIAL LAND STRATEGY

COUNCIL APPROVAL

@ilionton

PLANNING AND DEVELOPMENT

Edmonton City Council Meeting Minutes, August 27, 2002 E.1.c.

Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

E.1.o.

Edmonton's Industrial Land Strategy. v

MOVED M. Phair — R. Hayter: 1.

That the August 9, 2002, Planning and Development Department report be received for information. (Item E.1.c.)

2.

That Edmonton's Industrial Land Strategy, Attachment 1 of the April 18, 2002, Planning and Development Department report, be approved. (Item E.

L. Benowski, General Manager, Planning and Development Department, answered Council's questions.

MOVED L. Langley — J. Batty: That any Member of Council, who may wish to do so, be allowed to speak for an additional five minutes.

CARRIED FOR THE MOTION:

ABSENT:

B. Smith; B. Anderson, J. Batty, A. Bolstad, T. Cavanagh, E. Gibbons, R. Hayter, L. Langley, K. Leibovici, J. Melnychuk, M. Phair.

S. Mandel, D. Thiele.

A.B. Maurer, City Manager; L. Benowski, General Manager, and R. Caldewell, Planning and Development Department, answered Council's questions.

MOTION ON ITEM E.1.c. and E.1.o., put: 1.

That the August 9, 2002, Planning and Development Department report be received for information. (Item E.1.c.)

2.

That Edmonton's Industrial Land Strategy, Attachment 1 of the April 18, 2002, Planning and Development Department report, be approved. (Item E.1.o.)

Planning & Development

CARRIED FOR THE MOTION:

ABSENT:

B. Smith; B. Anderson, J. Batty, A. Bolstad, T. Cavanagh, E. Gibbons, R. Hayter, L. Langley, K. Leibovici, J. Melnychuk, M. Phair, D. Thiele.

S. Mandel.

MOVED M. Phair — T. Cavanagh: That the Administration provide to City Council an evaluation of the Industrial Land Strategy in February 2004.

Planning & Dev.

Due: Feb. 2004 CARRIED

FOR THE MOTION:

OPPOSED: ABSENT:

B. Smith; B. Anderson, J. Batty, A. Bolstad, T. Cavanagh, E. Gibbons, L. Langley, K. Leibovici, J. Melnychuk, M. Phair, D. Thiele.

R. Hayter.

S. Mandel.

Agenda Item No.: Edmonton's Industrial Land Strategy

Recommendation: That Edmonton's Industrial Land Strategy, Attachment 1, be approved.

Report Summary •

Edmonton's Industrial Land Strategy is a nine part strategy supported by an implementation program. The intent of the strategy is to ensure that Edmonton has enough serviced industrial land to accommodate the growth of the city's businesses and attract new businesses.

Previous Council/Committee Action •

•

At the Council meeting of June 21, 1999, City Council approved the City of Edmonton Corporate Business Plan which included direction to prepare an industrial land strategy to ensure adequate land for economic growth.

At the Council meeting on March 20, 2001, City Council passed the following motion: That the Terms of Reference for the Industrial Land Strategy, Attachment 1 (of the February 27, 2001 Planning and Development Department report) and the Urban Land Intensification Strategy, Attachment 2, be approved, subject to funding being approved by City Council.

Report •

City Council's Vision for Economic Prosperity includes the vision of "A capital city where businesses want to locate and expand;" and, a mandate for "Providing a physical and human infrastructure that contributes to economic development and quality of life."

Routing: Delegation: Written By: April 18, 2002 File: 2002PDP027

Through Plan Edmonton, Council has directed the Administration to, "Ensure an adequate supply of industrial land."

Other priorities and strategies are intended to support the growth and attraction of industrial business through City policies and actions and the use of City assets, including information and communication technology.

• The principles and policies of the Long Range Financial Plan guide financial decision making and set strategic direction. They include seeking a balanced tax base through a sound mix of residential, commercial and industrial development.

• Edmonton's Industrial Land Strategy, Attachment 1, arises from Council's vision statement, Plan Edmonton and the City of Edmonton Corporate Business Plan. Through it, City Council and the Administration, in co-operation with public and private sector partners, will act to accommodate the growth of existing industrial businesses and attract new businesses to Edmonton. The strategy will support the principles of the Long Range Financial Plan.

• Edmonton's Industrial Land Strategy is a corporate strategy prepared under the direction of an interdepartmental committee of City staff and a representative from Economic Development Edmonton. The committee members led and/or co-ordinated the work of task teams within their departments to address specific issues related to industrial land development.

Consultants were engaged to do specialty research.

•

Executive Committee / City Council Larry Benowski Angela Hingston / Gord Jackson Planning and Development Department (Page 1 of 3)

Edmonton's Industrial Land Strategy

• Public input to the strategy was obtained through a stakeholder workshop at the beginning of the project and interviews conducted with representatives of industrial businesses for the Industrial Land Strategy Demand Study. Interviews and a workshop were also conducted for A Study of Industrial Land Development Financing in the City of Edmonton.

Additional input was obtained through direct participation by City staff in all eight Greater Edmonton Competitiveness Strategy cluster groups.

• The strategy consists of nine elements that provide an enduring framework for strategic actions by the City of Edmonton in co-operation with its private and public sector partners. The nine part strategy is accompanied by an implementation program that will be updated as specific actions are completed and the need for new work is identified.

• The nine key elements of the strategy are: 1. Maintaining land supply; 2. Planning industrial areas; 3. Industrial development approvals process; 4. Financing industrial infrastructure; 5. Building infrastructure and providing services; 6. City of Edmonton strategic industrial land development; 7. Enhance the marketing of industrial land;

8. Strategic economic development partnerships and programs; and 9. Monitoring industrial land supply and demand.

• The strategy includes a recommendation that a program manager be assigned by the City Manager to oversee implementation of the strategy.

Budget / Financial Implications • Implementation of Edmonton's Industrial Land Strategy will require two additional staff positions in the Planning and Development Department. The two positions will be funded in 2002 and future years by operational revenues.

• A number of other activities can proceed using funds approved in the 2002 budget to undertake work that needs to be done and that falls within the scope of normal municipal business operations.

• Approval of the strategy will affect operating and capital budget priority setting by Administration in future budget proposals. Implementation and monitoring of the strategy will provide information to assist Council in making budget decisions. Costs and revenues from more aggressive strategic industrial land development activities will affect the management of funds in the Land Enterprise.

• Successful implementation of the strategy will help to achieve the objectives of the Long Range Financial Plan with respect to maintaining business and property tax revenues and user fees.

(Page 2 of 3)

Edmonton's Industrial Land Strategy

Justification of Recommendation •

Plan Edmonton assigned responsibility to "Ensure an adequate supply of industrial land" to the City Administration. Monitoring and forecasts of industrial land supply and demand indicate that action by the City is required to ensure an ongoing supply and selection of serviced industrial land.

Edmonton's Industrial Land Strategy is a cohesive, strategic plan of action to fulfil the Administration's mandate.

Background Information Attached 1. Edmonton's Industrial Land Strategy.

Background Information Available on Request

Applications Management Consulting Ltd., November 2001 6. A Study of Industrial Land Development Financing in the City of Edmonton, Nichols Applied Management, Management and Economic Consultants, December 2001 7. Industrial Land Development — Benchmarking Other Cities, Real Estate Advisory Services, PricewaterhouseCoopers Consulting, December 2001.

8. Edmonton's Industrial Land Strategy Background Report, Planning and Development Department, January 18, 2002.

Others Approving this Report

1. Edmonton Industrial Land Strategy Input from Workshop Sessions with Industry, Western Management Consultants, November 17, 1999, 2. City of Edmonton Industrial Land Strategy Demand Study, Western Management Consultants in association with Dianne Lougheed Keefe Consulting Inc. and Nichols Applied Management, June 30, 2000.

3. City of Edmonton Industrial Land Report: the Supply and Status of Vacant Industrial Land, City of Edmonton Planning and Development Department, January 1, 2000.

4. Blueprint for a Next Generation Economy, Prepared for Economic Development Edmonton by ICF Consulting, December 22, 2000

• Bill Burn, General Manager, Asset Management and Public Works • Rick Millican, General Manager, Transportation and Streets • Randy Garvey, General Manager, Corporate Services

5. Edmonton Population and Employment Forecast Allocation Study 2000-2025,

(Page 3 of 3)

Agenda Item No.: Edmonton's Industrial Land Strategy: Responses to Councillors' Questions

Recommendation: That the following report be received for information.

Report Summary •

This information report responds to Council members' questions regarding the Industrial Land Strategy.

Previous Council/Committee Action •

At the Council meeting on July 2, 2002, City Council approved the following motion: "That Council members provide written questions to the Office of the City Clerk by 5:00 p.m. on July 12, 2002.

(Attachment 1 of the July 2, 2002 City Council minutes)."

"That the Industrial Land Strategy and responses to Councillors' questions be brought back to the August 27, 2002 City Council meeting."

Report •

Members of City Council submitted a total of 30 questions related to the proposed Edmonton's Industrial Land Strategy, by July 12, 2002. Attachment 1 is a list of the questions.

•

Administration prepared answers to the 30 questions for review at the City Council meeting of August 27, 2002.

Attachment 2 contains the answers.

•

The questions and responses have been reviewed by stakeholders, including representatives of the Urban Development Institute, the Edmonton

Routing: Delegation: Written By: August 09, 2002 File: 2002PDP077

City Council Larry Benowski Gord Jackson/Angela Hingston Planning and Development (Page 1 of 1)

Real Estate Board and Economic Development Edmonton.

Background Information Attached 1. City Council Minutes July 2, 2002, Item E.1.h. "Edmonton's Industrial Land Strategy: Councillors' Questions."

2. Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Attachment 1 City Council Minutes, July 2, 2002, Item E.1.h. "Edmonton's Industrial Land Strategy: Councillors' Questions."

ATTACHMENT 1 TO CITY COUNCIL MINUTES, JULY 2, 2002, ITEM E.1.h.

EDMONTON'S INDUSTRIAL LAND STRATEGY: COUNCILLORS' QUESTIONS

Councillor S. Mandel 1.

Why do we need a 3 years supply of serviced industrial land? How much has turned over in the past 3 years?

2.

What are some of the new financial methods the strategy plans to put in action?

3.

Cost of industrial land both to sell & to buy are extremely relevant. What is the current estimate to service an industrial lot of 1 acre and what does it sell for?

4.

Is there a comparison for our ACRA neighbours on the same 1 acre lot?

5.

What do you mean by "equitable cost sharing"?

6.

How much consulting have you had with this industry? At what level? Do you expect to do more?

7.

When you state that the City is going to be active in the Industrial Land market. Is that as a service & supply of lands? Will you maintain a market view or a view to supply lands to users as a means of promoting our City?

8.

At Executive Committee the President of UDI talked about servicing costs in the City vs County. Ours were substantially higher. Will you address this issue? Would you look to service a special market?

9.

Our biggest advantage is people & access to other services that might relate to the industrial user. Should we focus on infrastructure i.e. 156 St. overpass from east to west side of Anthony Henday on 111 Ave, improved truck routes to facilitate the movement of goods & services rather than the sales function?

10.

If we look at playing a role through strategic land acquisitions. How will that factor into our 5 year policy for buying land?

11.

It appears that this is part of EDE's responsibility is that so? How do they do it? How effective is their web site for industrial land or as well as our own?

12.

Do we have a strategy that is based on a competitive market? Will our Edmonton industrial areas go after a certain specific segment of the market and will the kind of

Attachment 1 - Page 1 of 3

Attachment 1 City Council Minutes, July 2, 2002, Item E.1.h. "Edmonton's Industrial Land Strategy: Councillors' Questions."

servicing be done commensurate with those kind of users? As per 5E Building Infrastructure in your presentation.

13.

What will you do to enhance marketing? For what purpose? From what budget?

14.

Will the industrial development approval process #3 be used both for land development as well as building construction?

Councillor M. Phair 15.

Administration reported that it was useful to have available a 3 year supply of industrial land. Is not the issue really the 'quality' of that supply--location, size of property and proximity of servicing? If this is the case how would the city 'rate' the current supply against such criteria?

16.

In developing and promoting industrial land and industrial land use/sale, what role(s) has the city played in the past? What role does the city currently play? If this land strategy were passed by Council, what would be the future role of the city?

17.

On behalf of the city, what role does EDE play in all of this?

18.

What kind of knowledge does the city have about industrial land availability and sales in the region outside of Edmonton, including the 'quality' of the land? Who are the major competitors of Edmonton? What advantages/disadvantages does Edmonton have in comparison to its competitors?

19.

How does the city designate areas as suitable for industrial development?

20.

Has the city considered the desirability of the lands south of Heritage Valley to the city boundary and bordered by Highway 2 for industrial lands? Are these lands not within 1015 minutes of the International Airport?

Councillor K. Leibovici 21.

UDI indicated that they were concerned about the City's role. The question posed was "is the City a land developer or is the City's role to attract business and sell at market value?

22.

How are "targeted minimum levels" or "adequate supply of industrial land" determined?

Specifically, what are the determining factors, and what percentage of serviced industrial land vs unserviced land is considered an "adequate supply"?

23.

As services such as public transit and emergency response are provided to support business activities, has there been any consideration given to having businesses pay specifically for these services?

24.

As developers generally pay for roads and other infrastructure, will purchasers of City developed industrial lands be required to pay for these services?

Attachment 1 - Page 2 of 3

Attachment I City Council Minutes, July 2, 2002, Item E.Lh. "Edmonton's Industrial Land Strategy: Councillors' Questions."

25.

In the Forecast land requirements 2001 — 2010, are any of these lands serviced? If yes, what percentage?

26.

Recognizing that industrial areas are employment centres, will future Capital Priorities Plan include information on additional transit requirements and potential rapid transit links to the industrial areas of the City?

27.

Has the report on goods and services movement in Edmonton and surrounding areas been completed?

28.

Rather than working until 2006 to propose additional transportation infrastructure projects, would the Transportation and Streets Department consider integration of rapid transit along major arterial roadways and highways to industrial areas such as Northwest Edmonton?

29.

Which projects would be fast tracked and which new projects would be undertaken as a result of a new stottit water drainage utility?

30.

How does the City "actively market" its industrial properties?

Attachment 1 - Page 3 of 3

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

EDMONTON'S INDUSTRIAL LAND STRATEGY RESPONSES TO COUNCILLORS' QUESTIONS Question 1 Why do we need a 3 years supply of serviced industrial land? How much has turned over in the past 3 years?

Part A Through Plan Edmonton, Council directs Administration to "Ensure an adequate supply of industrial land." "Adequate supply" is interpreted as being a sufficient amount of land to offer a choice of sites with suitable location, characteristics and cost, to businesses wanting to locate or expand in Edmonton.

The policy to maintain an adequate supply of land leads naturally to the establishment of a quantitative target. The target is based on three principal factors.

•

From an economic development perspective, the land supply should be sufficient to offer businesses with an interest in an Edmonton location a selection of suitable industrial property at a competitive price.

•

The advantage of a large inventory of "ready to go" industrial properties is counterbalanced by the cost of maintaining the inventory to both land developers and infrastructure providers.

A more restricted land supply helps to maintain price levels and allow for quicker recovery of investments. Urban Development Institute representatives have indicated a preference for setting the target at two years or less.

•

The development process from raw land to construction of industrial buildings can take two years or more, depending on the infrastructure (roads, drainage, telecommunications, gas and electrical power) required. Obstacles, such as environmental contamination, can further delay the process. In periods of robust economic growth, building activity can consume land faster than it can be serviced, resulting in land shortages.

Setting the target for serviced industrial land is striking a balance between optimal conditions for economic development and optimal business and investment conditions for land developers and infrastructure providers.

The recommended target is a 3 year supply of industrial land. The supply should consist of an approximate 2 year supply of fully serviced lots and enough immediately serviceable land to meet or exceed the three year target.

Attachment 2 - Page 1 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Part B There is currently no complete and reliable database for industrial land absorption in Edmonton or the Edmonton region. The following tables contain information on land sales and servicing agreements.

Edmonton Industrial Land Sales — 1996 to mid-2002

Year 1996 1997 1998 1999 2000 2001 2002 (1/2 year) Total 6.5 year average

Estimated Industrial Acres Sold * 218 712 769 322 275 385 43 2,724 419

* Sales data are estimates for serviced and partially serviced industrial land in Edmonton based on annual updates of in-house data banks.

Edmonton Industrial Land Servicing Agreements — 1996 to mid-2002 Year

Acres Subject to Land Servicing Agreements in Industrial Areas #

1996 1997 1998 1999 2000 2001 2002 (1/2 year)

Total 6.5 year average

21 72 15 316 289 80 108 902 139

# Servicing data are from servicing agreements signed by the City of Edmonton and industrial land developers including the City's Real Estate Services Section.

Attachment 2 - Page 2 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

The Industrial Land Strategy Demand Study, prepared for the Industrial Land Strategy, forecasts that Edmonton's 8 major industrial sectors and industrial office parks will generate demand for up to 320 net acres of land per year within Edmonton over the next ten years. This is consistent with the rate of development over the past six years.

Question 2 What are some of the new financial methods the strategy plans to put in action?

Upon approval of the Industrial Land Strategy, Administration will work, in co-operation with private sector developers, on new approaches to financing the development of public (i.e. offsite) infrastructure that are sensitive to the particular characteristics of industrial land development. The objective will be to adjust policies and mechanisms in response to concerns raised by industrial developers and in recognition of the diverse nature of industrial development, to ensure that City processes support rather than hinder industrial land development.

Some of the topics open to discussion include, but are not limited to: •

adoption of per-hectare charges to pay for new stoiniwater systems for all industrial development;

•

development of a "one-window" approach to determining all developer costs payable to the City;

•

use of a standardized over-sizing levy for sanitary sewer lines of 375mm. diameter or larger in new industrial areas;

•

implementation of the arterial road assessment for industrial areas;

•

more extensive use of local improvement levies to finance infrastructure; and,

•

City financing of major infrastructure to facilitate industrial development.

Council has already approved the creation of a stormwater utility that will help to resolve development constraints due to restricted stormwater management capacity in some industrial areas. The Northwest Business Revitalization Zone created by Council in 2002 is the first case of a BRZ being created with the primary objective of partially financing a municipal public work (i.e. 184 Street / Yellowhead Trail overpass).

Attachment 2 - Page 3 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

City land development activities will also create opportunities to share costs through joint ventures and co-operative development with private owners, to overcome obstacles to development.

Question 3 Cost of industrial land both to sell & to buy are extremely relevant. What is the current estimate to service an industrial lot of 1 acre and what does it sell for?

The cost of industrial land includes the cost of the raw land, the engineering and construction costs of servicing the land, a number financing, legal, planning, business and marketing costs and a profit for the developer. There can be large differences in the cost of servicing industrial land based on: site characteristics; the nature of the planned development; special requirements of industrial business clients; requirements for public and private infrastructure (i.e. roads, drainage, gas, power, communications, rail); and, engineering and construction costs at the time the work is done.

In Edmonton generally, industrial land servicing costs are in the $85,000 to $125,000 per acre range, assuming paved roads with underground storm and sanitary sewer services. Proximity to roadway and utility access are the primary cost factors, but in some areas soil quality can also have a significant impact. The following table provides examples of estimated servicing costs for two areas for "medium industrial" land uses, one in the Northwest Industrial area, the other in the Southeast Industrial area.

Industrial Land Servicing Engineering and Construction Cost Estimates Project A

Project B

First 25 acres

$ 96,000/acre

First 10 acres*

$160,000/acre*

Next 35 acres

$ 68,000/acre

Next 80 acres

$ 78,000/acre

Next 69 acres

$ 48,000/acre

Last 20 acres

$10,000/acre

Last 15 acres #

$150,000/acre#

Total cost: 144 acres

$10,342,000

Total cost: 110 acres

$8,040,000

Average cost — gross

$71,800/gross acre

Average cost — gross

$73,100/gross acre

Average cost — net

$95,800/net acre

Average cost — net

$97,500/net acre

•

* Stormwater pond construction required

•

# Road construction required

Attachment 2 - Page 4 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

The real estate market sets the price for industrial land. Estimated current prices for fully serviced industrial land are in the range of $150,000 to $190,000 / acre. Premium or specialty sites can exceed $200,000. Lower priced industrial land with incomplete servicing is available in Winterbum Industrial Area with prices in the range of $65,000 to $90,000/acre.

Selling prices for industrial land reflect the servicing costs to some degree, but price is more dependent upon supply and demand as determined through the market. Until the late 1990's, there was a large inventory of serviced industrial land for sale at prices less than the cost to service new inventory.

The inventory was largely absorbed during the late 1990's which, in turn, led to price increases to a level where new development became feasible. Prices for individual sites will vary from parcel to parcel depending upon zoning, size and location, but generally, industrial land development today provides some modest profits.

It is worth noting that industrial land development is often carried out more as a necessity to ensure inventory rather than as a profit centre, as many industrial developers are more active in the building construction and/or leasing business than raw land development.

Question 4 Is there a comparison for our ACRA neighbours on the same I acre lot?

It is very difficult to compare industrial land prices between municipalities since many qualitative considerations set the market price. The following table gives examples of listed industrial land price in other municipalities.

Examples of Advertised Prices for Industrial Land in the Edmonton Region

Location

Advertised Price

Description / Source

Strathcona County, Near Sherwood Park Fwy

$125,000/acre

Serviced 10 acre lot in established industrial area. Source: JJ Barnicke web site

Strathcona County, Sherwood Industrial Estates

$126,000/acre

Serviced 2.2 acre lot in established industrial area

Leduc County, Nisku Business Park

$35,000 to $80,000/acre

Source: Strathcona County web site property locator Serviced (rural standard) industrial and commercial 1 acre to 30 acre lots. Source: Garstad & Whittingham Realty web site.

Attachment 2 - Page 5 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

St. Albert, Campbell Business Park

$95,000/acre

Initial six of twenty four lots listed by the City of St. Albert in established light industrial area, approximately 1.4 acre lots. Source: Economic Development and Tourism, St. Albert newsletter and web site.

Parkland County, Atcheson Industrial Park

$45,000 to $60,000/acre

Serviced (rural standard) properties in established business park. Source: County of Parkland web site

Average price County of Strathcona

$80,000 / acre

Generalized average for serviced land estimated by Strathcona County staff responding to City of Edmonton survey.

Some parcels in the Capital region have lower servicing costs because of lower standards (e.g. gravelled roads and ditch storm drainage) but these savings are partially offset by higher in "onsite construction costs" due to the owners need to provide their own water, sanitary services and storm settlement ponds.

Question 5 What do you mean by "equitable cost sharing"?

The reference to 'equitable cost sharing" is derived from City Council's equitable relationship program that addresses the City's relationship with other levels of government with respect to providing and paying for infrastructure and services to people and businesses.

A number of items directly affecting industrial development and falling under Provincial or Federal responsibility are suitable topics for discussion, including federal and provincial assistance to upgrade the capacity of the Yellowhead Trail (Trans Canada Highway) within Edmonton. The Administration will bring to the attention of the Provincial Government the detrimental effect of the Province's capital funding programs on the city's competitiveness. The City will request equitable participation by the Province and the Federal Government in financing economic development.

Question 6 How much consulting have you had with this industry? At what level? Do you expect to do more?

During preparation of the Industrial Land Strategy, members of the development industry were involved in consultation that took a variety of forms as listed below.

Attachment 2 - Page 6 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

It is the City's intention that implementation of the Industrial Land Strategy will involve ongoing co-operation and consultation with industrial developers, realtors, industrial businesses and other partners. One or more ongoing advisory committees will be established with stakeholder representatives. The advantage of a Team Edmonton approach to industrial land development is recognized by the City and its partners.

List of Consultation and Information Sharing Opportunities

I.

Industrial Land Strategy Workshop

Members of the industrial development industry and the civic administration participated in a facilitated workshop to discuss industrial development issues, future prospects, key strategy components, processes and roles. A summary of workshop proceedings was sent to all participants.

2.

Industrial Land Strategy Demand Study

A study examining Edmonton's economic strengths and the demand for industrial land was completed by consultants. The work involved face to face interviews with 65 leaders of industrial businesses and industrial development and real estate organizations. Copies of the draft final report were sent to the participants of the initial workshop, the Edmonton Construction Association and the Urban Development Institute.

3.

The Co-ordinating Committee

The strategy was developed under the direction of a co-ordinating committee of Director/General Supervisor level representatives of City departments. The committee members all have substantial experience with industrial land development and have had extensive direct contact with land developers over an extended period of time. The committee also included the Managing Director, Site Location, Economic Development Edmonton.

4.

Greater Edmonton Competitiveness Strategy

City staff working on the Industrial Land Strategy were specifically selected to participate as City representatives in the cluster groups and flagship committees of the Greater Edmonton Competitiveness Strategy. The Competitiveness Strategy brought together representatives of business, governments and institutions, including members of the industrial land development industry, to work on economic development initiatives, including approaches to building infrastructure and maintaining supplies of industrial land. City staff members are still working with Competitiveness Strategy committees.

Attachment 2 - Page 7 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

5.

Terms of Reference

The Industrial Land Strategy Terms of Reference was sent to the Urban Development Institute (UDI), the Edmonton Construction Association and participants of the earlier workshop for their review and comments. The Edmonton Construction Association responded with a letter of support for the objectives of the strategy and an active role for the City in industrial land development. The terms of reference were noted at meetings between the UDI executive and members of the City's Senior Management Team.

6.

Study of Industrial Land Development Financing

In response to the concern most commonly expressed by industrial land developers, financial consultants were hired to study and assess current approaches to financing industrial land development and to propose alternatives. The study included one-on-one interviews and focus groups with industrial land developers. Interviews with staff in other municipalities, as well as City of Edmonton staff, were also conducted as part of the study.

7.

Edmonton Real Estate Board

Discussions with representatives of the Edmonton Real Estate Board resulted in agreement to evaluate opportunities to work together to expand the use of the City's intemet, geographic information systems and e-business technology for marketing and selling industrial land. In May 2002, the Industrial Land Strategy was reviewed by members of the board of the Commercial Division. The City has received a letter of support for the strategy from Mr. Jim Kulak, Director & Chaitman, Edmonton Real Estate Board Commercial Division.

8.

Industry Information

Information reports from the major Edmonton industrial real estate companies have been used to track conditions in the industrial properties market. City staff attended the Edmonton Real Estate Forums. Consultants were used to provide and obtain information on the approaches to industrial land development in other cities from both land development organizations and municipalities.

9.

Urban Development Institute (UDI)

The General Manager of Planning and Development and other City staff met with the President of UDI (Edmonton), the Executive Director and members of UDI's Planning

Attachment 2 - Page 8 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Committee who are active in the industrial land development business to discuss the draft strategy in May 2002. The UDI representatives have reviewed the strategy and indicated general support based on the understanding that consultation with the land development business will be an integral part of implementing the strategy.

10.

Urban Development Institute Presentation at Executive Committee

The President of UDI (Edmonton) and members of the UDI Planning Committee made a presentation and answered questions with respect to the Industrial Land Strategy at the June 26, 2002, Executive Committee Meeting. The UDI representatives made the following points: •

•

•

The development industry wants to work with the City to make the planning and development approval process more responsive to the characteristic and needs of the of the industrial land development business and the market it serves.

The development industry wants to work with the City on reviewing infrastructure standards that make industrial land in Edmonton more expensive than in competing jurisdictions (e.g. underground power and drainage standards).

The development industry wants the City to be clear on the role it intends to play as an industrial land developer. If the City acts as a private for-profit development company, private developers can compete and will invest in industrial development. If the City uses cheap land to attract business, the private developers cannot compete and will need to make other business plans.

Question 7 When you state that the City is going to be active in the Industrial Land market. Is that as a service & supply of lands? Will you maintain a market view or a view to supply lands to users as a means of promoting our City?

Implementation of the Industrial Land Strategy will involve the City in the role of an industrial land developer. That role will involve the acquisition of land and land development including land servicing and sales.

It is the intention that the City will continue to service and supply industrial land in Edmonton based on a financial cost-benefit model that is sensitive to supply/demand needs in the marketplace. Generally, land will be purchased and/or developed where there is a reasonable expectation of a profit (i.e. a return exceeding the costs of the raw land, servicing and marketing).

Attachment 2 - Page 9 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

It is not intended that the City adopt a subsidized land policy as a universal incentive to promote industrial development.

The Industrial Land Strategy will direct the City to act quickly to bring serviced land to market where there is a concern that supply will not be available in a particular location or configuration.

As well, the strategy will allow the City to purchase and/or develop land to overcome obstacles that are interfering with the orderly and timely development of industrial areas.

The strategy also allows for instances where the City may provide land at less than market value to achieve a specific economic development objective, but Council approval on a case by case basis would be required. The Edmonton Research Park is an example of the use of a promotional program using subsidized land that has been approved by City Council.

Question 8 At Executive Committee the President of UDI talked about servicing costs in the City vs County. Ours were substantially higher. Will you address this issue? Would you look to service a special market?

The Industrial Land Strategy acknowledges that servicing costs are dependent on servicing standards. The implementation program includes investigation of modified standards for infrastructure development in cooperation with the other participants in the development industry. Reducing the cost of servicing will be a major objective.

The discussion will include consideration of how modified standards could be used in areas with specific servicing constraints and requirements. Servicing the needs of industries requiring specialty infrastructure will also be part of the discussion.

Question 9 Our biggest advantage is people & access to other services that might relate to the industrial user. Should we focus on infrastructure i.e. 156 St. overpass from east to west side of Anthony Henday on 111 Ave, improved truck routes to facilitate the movement of goods & services rather than the sales function?

The Industrial Land Strategy consists of nine elements or action areas designed to be used together as an integrated strategy to have a positive impact on all aspects of the industrial development process. They direct an implementation program that works in an Edmonton context and will be responsive to future events and circumstances.

Attachment 2 - Page 10 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Taking effective and appropriate action across all nine elements of the strategy is important to the integrity of the overall strategy and to achieving the City's economic development objectives.

Expansion of the city's land sales function makes full use of existing expertise and extends the opportunity for earning a reasonable profit.

The Industrial Land Strategy will be implemented over an extended period of time. The intensity with which the elements are pursued will be modified to respond to conditions as they develop.

Question 10 If we look at playing a role through strategic land acquisitions. How will that factor into our 5 year policy for buying land?

Current City policy does not permit the Administration to purchase land except for municipal purposes such as roads or public buildings. The City's inventory of unserviced industrial land was acquired through tax default, surplus land previously used for municipal purposes, land trades with private developers, and land purchased prior to 1982 for industrial development purposes.

In approving the Industrial Land Strategy, Council will peimit Administration to purchase land for the purpose of developing it and selling it to builders, industrial businesses and/or small scale developers. Land acquisition will be purposefully done to achieve strategic objectives such as removing obstacles to development, ensuring that land supply is adequate, and supporting Council's economic development objectives.

There is a major benefit in the City being active in the industrial land development market so as to enable partnering and cost sharing to help facilitate joint developments when servicing constraints or bottlenecks occur. Strategic investment in infrastructure such as the 111 Avenue extension to Anthony Henday Drive, the stormwater facility in Roper Industrial, and the planning work for the Pylypow Neighbourhood all reflect examples of how the City's involvement has helped to facilitate development.

Rationalizing the size and locations of future industrial parcels is an ongoing exercise, and the City continues to evaluate "opportunity purchases", or exchanges, or outright sale of its Industrial lands. At this time, the City has an inventory of 690 acres of raw land located in the Northwest (Rampart and CityWest), and the Southeast (Ellerslie, Pylypow and Maple Ridge). No additional purchases have been identified in the 5 year Capital Priorities Plan at this time.

Land purchases will be considered where inventories become depleted, a supply shortage is projected or the need for a strategic land purchase is identified. At that time, Administration will

Attachment 2 - Page 11 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

identify the cost/benefit of a land purchase. A recommendation for purchase will be brought to City Council for approval if deemed appropriate.

Question 11 It appears that this is part of EDE's responsibility is that so? How do they do it? How effective is their web site for industrial land or as well as our own?

Part A Economic Development Edmonton's mandate includes two areas of responsibilities directly related to industrial land: EDE is responsible for the administration of the Edmonton Research Park; and, EDE provides a site location service that assists businesses looking for properties.

EDE's mandate is to promote the Edmonton region, attract businesses and help support business growth in the Edmonton region. These economic development programs which have been consolidated under the umbrella of the Greater Edmonton Competitiveness Strategy are generally aimed at increasing business activity resulting in an increase in demand for industrial land.

One Greater Edmonton Competitiveness Strategy Committee initiatives was the creation of the Northwest Industrial BRZ to help fund an enhancement to the 184 St. / Yellowhead Trail overpass.

Part B EDE's web site provides information on contacting the EDE site location staff, but it has no information on industrial land. EDE has no Geographic Information System (GIS) capability for land based applications.

The City of Edmonton web site has information on industrial properties for sale by the City, but provides no information on industrial properties available from other vendors.

The Industrial Land Strategy is proposing to make better use of the City's leading edge GIS and Internet technology to improve the marketing of City-owned industrial properties; and, evaluate opportunities to use the City's information technology to provide information on industrial properties available from private sector realtors and developers. The Edmonton Real Estate Board has existing data sharing agreements with the City and strongly supports this initiative.

Attachment 2 - Page 12 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 12 Do we have a strategy that is based on a competitive market? Will our Edmonton industrial areas go after a certain specific segment of the market and will the kind of servicing be done commensurate with those kind of users? As per 5E Building Infrastructure in your presentation.

It is desirable to maintain a land inventory to be in a position to accommodate any major industrial business wishing to locate or expand in Edmonton. However, it is also recognized (and emphasized through the Greater Edmonton Competitiveness Strategy) that there are certain segments of the market that will be more attracted to the City of Edmonton and the forecasted demand is based upon those sectors. Specific sectors will be recognized in preparing industrial area plans and servicing requirements for these types of users and will be applied to new developments.

City of Edmonton infrastructure standards required for new industrial developments are generally higher than those required in adjacent municipalities. The higher standards result in higher development costs, making Edmonton industrial properties more expensive than properties in competing areas.

Approval of the strategy will initiate discussion among City staff and development industry representatives regarding modifications to infrastructure standards in industrial areas. The objective will be to reduce development costs where it is appropriate to do so, to allow Edmonton to be more competitive and to bring land into more productive use. Other factors will also be considered, including; •

ensuring acceptable environmental standards will continue to be met;

•

reducing obstacles to development arising from requirements for full urban service standards;

•

avoiding negative impacts on adjacent properties; and

•

establishing or maintaining the planned character of industrial business areas.

Where modified standards are found to be a suitable alternative to full urban service standards, reductions in development costs and removal of obstacles to development will improve Edmonton's competitive position.

Attachment 2 - Page 13 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Modified standards will be applied only within the framework of an industrial area plan, not universally. Low priced land in industrial areas with basic servicing standards is in demand.

There is also demand for industrial areas with higher quality business environments, including, prestige and specialty business properties with full or enhanced urban services.

Question 13 What will you do to enhance marketing? For what purpose? From what budget?

Marketing of industrial lands is carried out by the Land and Buildings Branch using resources within the annual operating budget for branding and generic advertising. Funds from the Land Enterprise Fund are used for specific site advertising.

Marketing of industrial land currently consists of: signage, catalogue distribution, MLS listings, and the Web. The proposed enhancements include improvements to the Website and more print advertising in regional and national publications.

The City's marketing activity is intended to promote Edmonton as an industrial business centre and City owned industrial properties for sale. Economic Development Edmonton promotes the Edmonton Region as a business location. A number of marketing activities are developing out of the Greater Edmonton Competitiveness Strategy. There remains a need for marketing of industrial sites within the City of Edmonton in pursuit of the City's economic development goals.

The EDE budget is approved by City Council. It includes City funds and funds obtained directly from other levels of government and from EDE's own business activities.

Question 14 Will the industrial development approval process #3 be used both for land development as well as building construction?

Yes, land development approval processes are being progressively integrated. A recent example is the IKEA project in South Edmonton Common for which a subdivision, a servicing agreement and development and building permits were prepared together.

Administration and representatives of the development industry will continue to discuss ways to streamline and improve the development approvals process.

Attachment 2 - Page 14 01 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 15 Administration reported that it was useful to have available a 3 year supply of industrial land.

Is not the issue really the 'quality' of that supply—location, size of property and proximity of servicing? If this is the case how would the city 'rate' the current supply against such criteria?

The industrial land supply target is intended to be qualitative as well as quantitative to ensure that available land meets the needs of industrial businesses. Property characteristics such as location, size, access and visibility, zoning, etc. affect purchasing decisions. The ninth element of the strategy, "Monitoring industrial land supply and demand," will help to direct the implementation of the strategy to achieve a land supply that meets the operating needs of industrial businesses.

There is no standard by which to "rate" the inventory of industrial properties in Edmonton other than to report consensus observations about the real estate market. Monitoring and anecdotal evidence have indicated increasing land prices, a steady decline in the inventory of serviced land, and obstacles to new development restricting development over a three year period.

By the end of 2001, realtors were unanimous in reporting shortages of categories of industrial properties in Edmonton, most notably medium industrial properties over 5 acres, principally in the Southeast. Supply shortages are seen in other categories such as fully serviced sites with visibility along arterial roads. Realtors also reported that the marketability of some properties was being hampered by existing obsolete buildings. Most significantly, the realtors reported that businesses unable to find suitable properties in Edmonton were locating in other municipalities.

As well, the industrial land and property market is not yet addressing the potential need for land for knowledge based industries such as information technology and biotechnology. A lack of suitable accommodation for these small but growing economic sectors would reduce Edmonton's success in attracting and/or keeping science and technology based companies and would restrict Edmonton's ability to capitalize on the economic advantages of being the home of the University of Alberta.

The Administration does not have a current and comprehensive inventory of the available supply of industrial land. The strategy identifies the need to monitor inventories more closely to help ensure the supply is sufficient to meet demand. Estimates indicate that the overall supply of serviced industrial land is one to two years in the Southeast industrial area and about two years in the Northwest industrial area. The City will act to help restore and maintain inventories at a 3year supply of serviced industrial land with a servicing program in the CityWest joint-venture development, in 2002, and the start of new development in Pylypow and Ellerslie planned for 2003.

Attachment 2 - Page 15 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 16 In developing and promoting industrial land and industrial land use/sale, what role(s) has the city played in the past? What role does the city currently play? If this land strategy were passed by Council, what would be the future role of the city?

The City of Edmonton was last involved in industrial land development in 1982, with the Roper industrial subdivision. With the economic downturn that occurred in the early 80's, the City's role evolved into more of a land bank as almost 200 acres of industrial land was obtained by the City through tax forfeiture. The tax forfeitures occurred largely due to high local improvement levies associated with servicing that was done by the City for private land developers through local improvement bylaws. With limited demand and a large supply, land prices fell dramatically.

The turnaround began in 1996 with the sale of 218 acres by the City reflecting a 29% market share. Since 1996, the City has sold some 2,700 acres, averaging a 17% market share.

The future role of the City will be to continue to monitor and plan for the orderly supply and sale of serviced industrial land in geographic areas where industry wants to locate. In the future the amount of land developed and sold by the City, and the City's share of the market will depend on overall demand for industrial land and the level of activity by private sector developers.

Industrial Land — All Sales Versus City of Edmonton Sales— 1996 to mid-2002 Year

1996 1997 1998 1999 2000 2001 2002 (1/2 year) Total 6.5 year average

Estimated ALL Sales of Industrial Industrial Land Sold Land by the City (Acres) (Acres) 218 63 712 161 769 118 322 26 275 18 385 51 43 29 2,724 466 419 72

City % of ALL Industrial Land Sales 29% 22% 15% 8% 7% 13% 67% 17%

Through implementation of the Industrial Land Strategy, the Real Estate Services Section will be an agent of economic development as well as a seller of surplus City land. City actions will be

Attachment 2 - Page 16 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

directed to: ensure an adequate supply of industrial land in terms of both quantity and quality; remove obstacles to development that restrict land supply; lead in planning new areas; provide land for economic development programs approved by City Council; promote Edmonton as a leading industrial centre; and, facilitate the activities of private and public sector developers through partnerships.

Question 17 On behalf of the city, what role does EDE play in all of this?

The Economic Development Edmonton mandate includes two specific areas of responsibility directly related to industrial land: EDE is responsible for the administration of the Edmonton Research Park; and, EDE provides a site location service that assists businesses looking for business properties.

Principally, EDE's mandate is to promote the Edmonton region, help to create conditions that attract businesses and support the growth of businesses in the Edmonton region. EDE's economic development programs are under the umbrella of the Greater Edmonton Competitiveness Strategy. The original 8 Competitiveness Strategy Flagship Initiatives are: 1. Regional 'Deal' Generator 2. Skills Pipeline Partnership 3. Transform Greater Edmonton into a World Class Life Sciences Centre 4. Investment in Regional Transportation Infrastructure 5. Branding the Edmonton Region 6. Leveraging the Supemet in Greater Edmonton 7. Regional Enterprize Attraction 8. Microsystems Development and Commercialization To the original eight initiatives, EDE added a ninth, the Industrial Land Flagship that reflects its role in implementing the Industrial Land Strategy and other activities involving regional land supply.

Essentially, EDE's mandate is to increase the demand for industrial land in the Edmonton region.

Administration's mandate is to ensure that sufficient and suitable industrial land is available within the City of Edmonton to attract and accommodate industrial businesses.

These roles are complementary and their effective coordination is a major responsibility of EDE and City staff that is addressed in the eighth element of the strategy: "Strategic economic development partnerships and programs."

Attachment 2 - Page 17 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 18 What kind of knowledge does the city have about industrial land availability and sales in the region outside of Edmonton, including the 'quality' of the land? Who are the major competitors of Edmonton? What advantages/disadvantages does Edmonton have in comparison to its competitors?

Edmonton's most formidable head-to-head competitor for industrial development is Calgary, and to a lesser extent, other urban industrial areas in western Canada and the northwestern U.S.A. For the high value-added industries — industries based on biotechnology and other sciences — Edmonton is competing on a continental and world-wide scale.

There is no consolidated source of information on industrial land availability and sales within the Edmonton region, but the City maintains a knowledge base of industrial land development activity in the Edmonton Region. Information is obtained through direct participation in the MEEDT group, (Metro Edmonton Economic Development Team), the Edmonton Real Estate Board Industrial Commercial Committee, and through ongoing dialogue with agents, developers, EDE, and industry representatives.

Information on industrial areas outside Edmonton is also available from web sites and promotional material. In 2001 year-end reports, four major industrial real estate firms were reporting shortages of some categories of industrial land within Edmonton, but an adequate supply in the region. This information indicates that Edmonton is losing industrial development to other municipalities in the region, principally Strathcona County, Leduc County and Parkland County.

Within the Edmonton region there are two "branded" sub-regions: Alberta International Region and Alberta's Industrial Heartland. The objective of branding is to attract specific groups of industries and related industries.

Alberta International Region consists of the area to the south of Edmonton including Edmonton International Airport, Leduc County, City of Leduc, Town of Beaumont, Town of Calmar, Town of Devon, Village of New Sarepta and Town of Millet. The Alberta International Region competitive advantage is access to the Edmonton International Airport, Highway 2, a major concentration of existing businesses located in the Nisku Business Park, and proximity to Edmonton Alberta's Industrial Heartland is a branding name for an area consisting of 194 sq. km (75 sq. miles) of land allocated for industrial development in an area including portions of Strathcona

Attachment 2 - Page 18 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

County, City of Fort Saskatchewan, Sturgeon County and County of Lamont. The Heartland competitive advantage is a grouping of over 30 large and mid-sized petrochemical industries supported by pipeline and petrochemical storage infrastructure. The industrial cluster attracts similar businesses and creates opportunities for industries that benefit from business linkages with the large firms. Some municipal land banking is done to ensure land is available for prospective industries.

The major competitors in the region are the industrial parks evolving on the immediate borders of the City.

•

The Nisku Business Park in Leduc County is described as Western Canada's largest business and industrial park. Nisku has over 450 businesses on 2,200 developed acres. An additional 1,800 acres is designated for expansion. Listed land prices are $35,000 to $80,000 per acre for serviced land (rural standard).

•

The new AirLINKS Business Park at the Edmonton International Airport is described as Alberta's newest prestige industrial and commercial centre with more than 1,100 acres of master planned and architecturally controlled business park. Land prices are not yet listed.

•

Strathcona County has the Northeast Industrial Area, in Alberta's Industrial Heartland, and the established Strathcona Industrial Area and Yellowhead East Industrial Area that accommodate a range of heavy to light industries.

•

Strathcona County is currently preparing the Yellowhead North Area Structure Plan covering 2,700 acres, adjacent to Edmonton's Clover Bar area. Light and medium industrial areas are proposed for the west portion of the plan area. An eco-business zone for research, hightechnology and light industry is proposed for the east part.

•

Acheson Industrial Area in Parkland County is described as a 10,240 acre industrial park located 5 km west of the City of Edmonton. Currently (June 25, 2002), Acheson has 357 acres of serviced land (water and sewer) with an additional 500 acres of unserviced land listed for sale by realtors or landowners. Acheson is well located to benefit from proximity to the CN Intermodal Terminal and Yellowhead Trail.

•

In Campbell Business Park, the City of St. Albert is selling the first 6 of a probable 24 full serviced light industrial / commercial lots sized at about 1.4 acre, for approximately $95,000 per acre.

Attachment 2 - Page 19 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Edmonton's Advantages and Disadvantages within the Region Edmonton's competitive advantages and disadvantages have been assessed in a number of studies, most recently Blueprint for a Next Generation Economy, prepared for EDE' s Competitiveness Strategy, and City of Edmonton Industrial Land Strategy Demand Study, prepared for the Industrial Land Strategy. The topic is extensive. A sampling of information is provided below.

Business site location decisions are based on a range of factors associated with the business's operational requirements as well as operating costs. Within the region, Edmonton has higher land prices and property taxes than other municipalities, and is the only municipality to collect business tax. Land prices and taxes are a competitive disadvantage.

Edmonton makes up for the higher cost of land and taxes by meeting other operational requirements of business that locate in the city. The biggest factor may be the concentration of people, activities and places in Edmonton's urban environment. Proximity to labour force, customers, suppliers and services can be major factors in business site location.

Edmonton's urban setting also provides for public and private infrastructure that supports business activity, including sewers, roads, rail, high speed telecommunications, high capacity electrical power, and laboratory test facilities. Edmonton services such as public transit, emergency response and over-strength sewage treatment also support industrial activities.

Edmonton attracts significant development in eight major sectors: Transportation and Warehousing; Machinery and Equipment; Electronic Products; Refined Petroleum Products; Plastics; Chemicals; Food and Beverage; and Biotechnology. Edmonton is also the most likely place in the region for the development of industrial office parks. In contrast, Edmonton is not in the running for a major petrochemical plant because none of its industrial areas is far enough from residential areas to allow for the large separation distances preferred by petrochemical companies.

The advantages vary for each of those sectors. For example, Edmonton's transportation infrastructure is the key advantage for Transportation and Warehousing businesses, the majority of which will locate in the Northwest Industrial Area. The new CN inteiniodal terminal, the anticipated completion of Anthony Henday Drive from Highway 2 to Yellowhead Trail, and the proposed 184 St and 156 St. overpasses on the Yellowhead Trail are considered beneficial incentives to new development.

Businesses also see advantage in existing clusters of businesses that facilitate business to business interaction (supply chain linkages). For example, Machinery and Equipment sector industries tend to cluster in the Southeast while Food and Beverage industries cluster in the

Attachment 2 - Page 20 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Northeast. By the same token, businesses also locate in industry clusters in Nisku Business Park and Strathcona County's industrial areas.

Science and technology based industries benefit from proximity to Edmonton's educational and research institutions like the University of Alberta, the Alberta Research Council, N.A.I.T., etc.

Question 19 How does the city designate areas as suitable for industrial development?

Edmonton's major industrial areas were designated in the 1980 General Municipal Plan. The Northwest, Southeast and South Industrial Areas had outline plans prepared in 1973 and 1974.

Other areas were to be selected for the preparation of industrial area structure plans on the basis of a contiguous pattern of development. Area structure plans may be prepared by the City and/or the private sector. A major factor in the location of existing industrial areas is the location of transportation infrastructure, including rail, truck routes and pipelines.

Additional industrial areas were annexed to Edmonton in 1982, but the subsequent decline in demand for industrial land resulted in no further industrial plans being prepared. Edmonton's current industrial areas are designated as business and employment areas in Plan Edmonton.

Recently, with the approval of the Heritage Valley Servicing Concept Design Brief, the City has identified a new area, Neighbourhood 7, as having potential to be a future industrial area. The reasons are familiar: close to transportation infrastructure (road and air); separated from residential development; and, a past history of rural type industrial land uses in the area.

The Industrial Land Strategy will initiate a new planning program to prepare integrated industrial plans for land use, infrastructure and services, with associated funding provisions.

Question 20 Has the city considered the desirability of the lands south of Heritage Valley to the city boundary and bordered by Highway 2 for industrial lands? Are these lands not within 10-15 minutes of the International Airport?

In approving the Heritage Valley Servicing Concept Design Brief (SCDB) and the accompanying amendment to Plan Edmonton, City Council designated a portion of the area within the SCDB as a business and employment area. The area is identified in the SCDB as Neighbourhood 7. It is located east of Blackmud Creek and west of Calgary Trail between Ellerslie Road and Edmonton's southern boundary.

Attachment 2 - Page 21 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Neighbourhood 7 shares with Ellerslie Industrial Area the advantage of being 10 to 15 minutes from Edmonton International Airport, and adjacent to the Calgary Trail portion of Alberta's north-south trade highway, just south of the junction with Anthony Henday Drive. This extraordinary access to transportation routes is a major locational advantage for industry.

Also, the Province has included a westward realignment of Gateway Boulevard as part of its highway construction plan for the north-south trade highway. When this is done, additional land suitable for industrial development should become available at Edmonton's major southern entryway.

Question 21 UDI indicated that they were concerned about the City's role. The question posed was "is the City a land developer or is the City's role to attract business and sell at market value?

Industry representatives from the Urban Development Institute have asked the City to be clear on how it intends to conduct itself as an industrial land developer. The question is whether the City will behave as a private sector development company selling land at fair market value or use its capacity to sell land at below market prices as an incentive to attract industry.

The strategy does not direct the City to adopt a general practice of providing land on a "less than market value" basis to serve as an incentive to attract businesses to Edmonton. On the principal question regarding the City's business practices, the general approach will be to develop industrial land and sell it at fair market value under conditions in which an "adequate supply" of industrial land maintains a competitive land market.

If the City behaves as a for-profit private sector company in terms of developing and selling land at fair market value, private sector companies can continue to compete in the industrial land development business. If the City uses its capacity to develop land and sell at discounted prices, private sector land developers will not be competitive and will not invest in industrial land development.

The Industrial Land Strategy supports and encourages active participation and investment in industrial land development and marketing by private sector companies, including action by the City to undertake strategic development activities to facilitate private sector developments.

The strategy also allows for the possibility of providing land priced below market value as part of a specific economic development incentive or program initiated directly by City Council.

Attachment 2 - Page 22 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 22 How are "targeted minimum levels" or "adequate supply of industrial land" determined?

Specifically, what are the determining factors, and what percentage of serviced industrial land vs unserviced land is considered an "adequate supply"?

The response to question #1 also applies to question #22.

Only serviced land is immediately available for new industrial development. At the end of the year 2001, industrial/commercial realty companies were reporting that some categories of serviced industrial land were not available in Edmonton. The supply of industrial land at the end of 2001 was therefore "not adequate."

Edmonton has a substantial supply of unserviced land designated for future industrial development. The current inventory of vacant land in industrial areas is approximately 10,400 acres of gross developable land. Development of that amount of raw land would produce approximately 7,900 acres of potential business properties.

The Industrial Land Strategy is required because unserviced industrial land is not being converted to serviced industrial land at a rate that ensures that the supply of industrial land ready for development is adequate to allow Edmonton to take advantage of available economic opportunities. One of the key elements of the Industrial Land Strategy is to more directly monitor actual supply in the marketplace in order to improve upon our abilities to assess trends.

Question 23 As services such as public transit and emergency response are provided to support business activities, has there been any consideration given to having businesses pay specifically for these services?

Industrial businesses in Edmonton pay higher property and school taxes than similar businesses in neighbouring municipalities. Edmonton also collects a municipal business tax that is not levied in adjacent municipalities. Consequently, most business people would say that they already pay for the enhanced services they and their employees receive.

Attachment 2 - Page 23 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Nevertheless, paying for enhanced services is an option in some cases. For example, businesses already pay the City for wastewater treatment for high strength sewage. The over-strength surcharge is based on the qualities of the sewage discharge.

As well, Administration has held discussions with some businesses regarding their willingness to pay for transit service required to meet the needs of their employees. These would be services that are unlikely to meet Edmonton Transit's minimum ridership warrants. No agreements have been finalized to date.

Question 24 As developers generally pay for roads and other infrastructure, will purchasers of City developed industrial lands be required to pay for these services?

Yes. The City of Edmonton sells land at market value. Buyers who purchase land developed by the City pay for infrastructure and other development costs through the price they pay for the property, just as they would if they were purchasing from a private sector developer.

Question 25 In the Forecast land requirements 2001 — 2010, are any of these lands serviced? If yes, what percentage?

The forecast ten year requirement for industrial land is up to 3,210 net acres of fully serviced industrial land for Edmonton's eight major industrial sectors and industrial/office parks.

Presently, the supply of serviced industrial land is considered to be "tight" for the first time since the early 1980s. Maintaining a "tight" supply status will require the servicing of up to 310 net acres of industrial land per year over the next ten years. Achieving a more generous supply would require a higher rate of servicing.

At the present time the amount of industrial land being actively developed and/or marketed is very roughly estimated at 500 acres of which only a portion is currently fully serviced.

Attachment 2 - Page 24 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 26 Recognizing that industrial areas are employment centres, will future Capital Priorities Plan include information on additional transit requirements and potential rapid transit links to the industrial areas of the City?

There have been discussions regarding new public transit services to industrial areas. The services are identified in operating budget service proposals (where significant development has occurred) as well as longer range service needs projections. "Growth" buses required to serve industrial areas are identified in the CPP process.

For further information please see the answer to Question # 28.

Question 27 Has the report on goods and services movement in Edmonton and surrounding areas been completed?

The initial data collection component of the Edmonton Commodity Flow Survey has been completed. Comprehensive infoimation has been obtained from over 3,000 business establishments in the city (and from over 1,000 establishments in the surrounding Region, in the complementary survey undertaken by Alberta Transportation).

The consultant is currently undertaking data entry, editing, and scaling, including call-backs as required to maintain data quality standards. The report summarizing goods and service movements in Edmonton and the surrounding areas will be finished in the Fall.

Question 28 Rather than working until 2006 to propose additional transportation infrastructure projects, would the Transportation and Streets Department consider integration of rapid transit along major arterial roadways and highways to industrial areas such as Northwest Edmonton?

•

Initiative 5B) of the Industrial Land Strategy states: "Provide regional transportation routes and access to industrial areas through the development of major arterial roads and highways, in co-operation with the Province and the Government of Canada."

Attachment 2 - Page 25 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

•

Initiative 5B) also states: "Additional regional transportation infrastructure projects will be proposed, primarily for construction after 2006, as development progresses and new needs are identified."

The approved Transportation Master Plan identifies the need for certain high standard arterial roadways to facilitate the movement of goods across the city, particularly for cross-town noncentrally oriented trips. The Plan therefore specifies the Outer Ring Road (Anthony Henday Drive), Highway Connectors, and the Inner Ring Loop as Major Arterial Roadways. These roads meet the "regional transportation routes" definition.

Initiative 5B gives a list of funded and unfunded projects on these regional routes for construction through 2006, in support of the Industrial Land Strategy. The statement "Additional regional transportation infrastructure projects will be proposed, primarily for construction after 2006, as development progresses and new needs are identified" is made in the context that the City and Province are funding around $300 million in projects on these routes through 2006, with a further $90 million in unfunded projects identified. A realistic construction schedule for any other projects would thus be beyond 2006.

The Transportation Master Plan also sets out the intended role for high speed transit, to be a viable and competitive alternative to private automobile transportation during peak hours of travel, in high demand corridors. Travel survey data shows that many industrial areas, such as Northwest Edmonton, generate a relatively low and dispersed demand for transit service. Transit needs to and from most industrial areas are most appropriately provided by regular bus services.

Question 29 Which projects would be fast tracked and which new projects would be undertaken as a result of a new storm water drainage utility?

In the 2003 to 2007 CPP, the administration is proposing to bring forward the following previously unfunded land drainage projects in support of the Industrial Land Strategy for Council's consideration: • • •

MacKenzie Pond — Cost: $3.3 Million — Construction: 2004 Mill Creek Tunnel Liner — Cost: $2.5 Million — Construction: 2006 Mill Creek Flood Control — Cost: $1.0 Million — Construction: 2007

Included in this is an accelerated schedule for the Mill Creek Tunnel Liner project. Other projects in support of the Industrial Land Strategy are being considered for inclusion in the Long Range Financial Plan beyond 2007.

Attachment 2 - Page 26 of 27

Attachment 2 Edmonton's Industrial Land Strategy: Responses to Councillors' Questions.

Question 30 How does the City "actively market" its industrial properties?

The Real Estate Services Section within Asset Management and Public Works markets serviced and partly serviced industrial land by: •

Joint venture development activities;

•

Newspaper advertisements, brochures, catalogues, direct mail and signage;

•

MLS listings with and presentations to the Edmonton Real Estate Board;

•

Stories and ads in industry publications and trade magazines;

•

Presentations to industrial/commercial specialty Realtors and developers and attendance at sales seminars and industry events;

•

Requests for proposals to in and out-of-town companies and servicing design and tendering notices;

•

Web pages including Initial Public Offerings, the Province's albertafirst.com and the Edmonton Real Estate Board's cls.ca web sites; and

•

Co-operation with Economic Development Edmonton and Alberta Economic Development.

Attachment 2 - Page 27 of 27

RESEARCH

EDMONTON'S

INDUSTRIAL LAND STRATEGY

RESEARCH

eitifOnton

PLANNING AND DEVELOPMENT

EDMONTON'S INDUSTRIAL LAND STRATEGY

Project Research Preparation of Edmonton's Industrial Land Strategy was assisted by high quality quantitative and qualitative research done by project staff, departmental working groups and consultants. The research components of the work program include: Edmonton Industrial Land Strategy Input from Workshop Sessions with Industry, Western Management Consultants, November 17, 1999.

A workshop and follow-up one-on-one consultation involving industry representatives from across the industrial land development spectrum: land development, building, financing, utilities, research, business development, marketing and the civic administration. This research was used to identify current issues affecting industrial land development, allowed industry to bring forward specific problems and set the direction for the strategy.

City of Edmonton Industrial Land Report, the Supply and Status of Vacant Industrial Land, January I, 2000, City of Edmonton Planning & Development Department.

This comprehensive inventory of industrial land supply and development activity provides detailed data in tables and maps for individual industrial "neighbourhoods," sectors and the city. Current servicing infottnation was plotted on maps with the aid of air photographs to achieve a highly visual picture of industrial infrastructure and land availability.

City of Edmonton Industrial Land Strategy Demand Study, Western Management Consultants in association with Dianne Lougheed Keefe Consulting Inc. and Nichols Applied Management, June 30, 2000.

The Demand Study examined economic trends and industrial growth sectors, followed by detailed sector analysis and interviews with industry leaders, to develop a profile of industrial land demand in each geographic sector of the city for five and ten year periods.

A Study of Industrial Land Development Financing in the City of Edmonton, Nichols Applied Management, Management and Economic Consultants, December 2001.

The study of industrial land development financing was done to assess current approaches to financing industrial land development and recommend improvements. In-depth interviews with industrial land developers and city staff yielded a complex picture of financing, leading to recommendations for options to be pursued.

EDMONTON'S INDUSTRIAL LAND STRATEGY

Industrial Land Development — Benchmarking Other Cities, Real Estate Advisory Services, PricewaterhouseCoopers Consulting, December 2001.

The Benchmarking Study surveyed several comparable municipalities and documented their approaches to industrial land development, for City Council's information.

Industrial Areas Considered for Modified Servicing Standards, City of Edmonton Drainage Services Branch, February 2002, (unpublished).

An assessment of the development costs associated with industrial land servicing standards and identification of areas of the city where modifications to standards would overcome obstacles to development.

Associated Work Work on Edmonton's Industrial Land Strategy was integrated with work on associated projects that were underway or were planned as the Industrial Land Strategy was being prepared. The Strategy took a co-operative approach to these projects and reflecting their proposals and findings where appropriate. The following reports provided important context and implementation tools for the strategy.

Update of City of Edmonton Infrastructure Inventory and Investment Needs, Office of Infrastructure, City of Edmonton, September 2000.

Blueprint for a Next Generation Economy, prepared for Economic Development Edmonton by ICF Consulting, December 22, 2000.

Edmonton Socio-Economic Outlook 2001- 2006, City of Edmonton Forecast Committee, October 2001.

Edmonton Population and Employment Forecast Allocation Study 2000-2025, Applications Management Consulting Ltd., November 2001.

Capital Priorities Plan, 2002 to 2006, City of Edmonton Corporate Services Department, December 2001.

Industrial Area Drainage Plans for the Southeast Industrial Area (complete in 2002), and Northwest Industrial Area (in progress in 2003), City of Edmonton Asset Management and Public Works Commodities movement study (to be complete in 2003) will assess the needs of industrial businesses and be used to update the Transportation Master Plan, as amended, City of Edmonton Transportation and Streets.

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