Edmonton (Alta.) - 2004 -Edmonton's industrial land strategy_AACIP awards submission (2004-02-17)

Land Supply Industrial Area Plans

Alberta Association Canadian Institute of Planners 2004 Planning Awards Program

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

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MAILING ADDRESS: 5TH FLOOR, 10250 - 101 STREET NW EDMONTON, ALBERTA 15J 3P4

Reference No.: 025205908-001

AACIP AWARDS P.O. Box 596 Edmonton AB T5J 2K8 Dear Awards Program Judge: I am pleased to submit Edmonton's Industrial Land Strategy as an entry in the 2004 AACIP Planning Awards Program competition. The Industrial Land Strategy is a significant contribution by professional planners to Edmonton's economic future though a new approach to planning and developing industrial land to accommodate new and expanding businesses, and promoting the city as an industrial centre.

The Industrial Land Strategy is a strategic plan that identifies and defines the roles, responsibilities and objectives of the City of Edmonton as well as relationships with partner agencies and private sector industrial developers and realtors. The Strategy's implementation program directs and co-ordinates actions to accommodate new and expanding industrial businesses, market industrial property, promote the city, and measure the results.

The Industrial Land Strategy exemplifies excellence in the preparation of a strategic plan and a companion implementation program. Merit and value are demonstrated in several areas of planning practice: project design and management; research, consultation and evaluation; strategic planning; implementation programming; and organizational development.

The first year Evaluation Report is included in this submission. The evaluation demonstrates both progress and the strong commitment by Council and Administration to the Industrial Land Strategy. The commitment is reflected in the millions of dollars in operating and capital expenditures initiated or advanced by the Strategy. Even in its criticisms, the report demonstrates the value of the Industrial Land Strategy as a framework for ongoing implementation, priority setting, evaluation, and resource allocation to maintain the progress of implementation.

Thank you for your consideration of this work which I submit on behalf of myself and my fellow AACIP members: Bob Caldwell MCIP, Heather McRae MCIP and Angela Hingston MCIP. Sincerely,

4r7di r,Lj 47 Gordon Ja son, MCIP, ACP Senior Planner, Industrial Land Strategy

MAYOR BILL SMITH

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@edmonton.ca

CITY OF EDMONTON

February 23, 2004

AACIP AWARDS P.O. Box 596 Edmonton AB T6E 2V8 Dear AACIP Awards Committee Judges: I wholeheartedly endorse Edmonton's Industrial Land Strategy as being worthy of an award of excellence from the Alberta Association Canadian Institute of Planners 2004 Awards Program.

The Industrial Land Strategy fulfils a pressing need for a strategic plan and implementation program. It will ensure that Edmonton continues to have the industrial land needed to accommodate the growth of existing industrial business and attract new businesses to our city.

Through implementation of the Strategy, Edmonton will continue to provide prime industrial sites as well as attractive development opportunities for industrial businesses.

City Council gave unanimous approval to the Industrial Land Strategy. Council is committed to its implementation as demonstrated by approvals of programs and infrastructure projects identified in the Strategy that serve industrial areas. My fellow Council members and I will continue to monitor and evaluate progress to ensure implementation is effective.

The Industrial Land Strategy is a framework for a focused, co-ordinated implementation program of planning, co-ordinating and performing actions among City departments and partner agencies.

The Strategy also facilitates development activity and investment by private sector developers, builders, realtors and industrial business operators.

The Industrial Land Strategy will continue to demonstrate its value for years to come. It is an important reason why Edmonton will continue to grow and prosper as a leading industrial centre.

Yours truly,

ill Smith Mayor

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CITY COUNCIL MINUTES Tuesday, August 27, 2002

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REPORTS RELATED TO EXECUTIVE COMMITTEE MATTERS

E.1.c.

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

E.1.o.

Edmonton's Industrial Land Strategy.

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

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.

City Council Meeting Minutes August 27, 2002

1

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 & Dev.

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.

FOR THE MOTION:

OPPOSED: ABSENT:

)

City Council Meeting Minutes August 27, 2002

Planning & Dev.

Due: Feb. 2004 CARRIED

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.

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EDMONTON'S INDUSTRIAL LAND STRATEGY

Alberta Association Canadian Institute of Planners

2004 Planning Awards Program ncreasing planners throughout North America face the challenge of sustaining or iincreasing industrial activity in their municipalities. At stake are employment opportunities for citi7ens, tax revenues for the municipality, even the identity of the community itself.

Work 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 plan 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 agencies to strengthen Edmonton's position and attractiveness as a major industrial centre.

The Industrial Land Strategy demonstrates excellence in the practice of strategic planning and implementation programming. It demonstrates merit and value in the areas of project design and management; research, consultation and evaluation; strategic planning; implementation programming; and, organizational development.

The 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 facilitated workshops with participants representing industrial land development, industrial building, financing and marketing stakeholders; City departments; private utilities and economic development agencies.

The list of issues identified helped to define the scope of the project and the project design needed to address the issues. 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;

• Alberta Association Canadian Institute of Planners 2004 Planning Awards Program

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EDMONTON'S INDUSTRIAL LAND STRATEGY

• 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.

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.

The workshop and follow-up work led to the project design that produced the comprehensive strategy and effective implementation program that is Edmonton's Industrial Land Strategy.

EXCELLENCE 10111

The Project Management approach took full account of the nature and scope of industrial land development issues. It was clear from the preliminary analysis that long established practices and policies would be challenged and changed in the course of preparing the Strategy. The project management process needed to provide the means to investigate issues, resolve problems, and develop and initiate 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 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 2004 Planning Awards Program •

EDMONTON'S INDUSTRIAL LAND STRATEGY

Committee members possessed knowledge, practical experience and years of direct contact with the land development industry in managing 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 managed 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 a broad 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 of major industrial/commercial real estate firms were monitored closely to track industrial property supply in the Edmonton area real estate market.

Consultation with private sector industrial developers, realtors and businesses was an integral part of the research and evaluation program.

Research, Consultation 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 by industrial sector and geographic area, and a twentyfive year forecast of employment growth.

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

• Alberta Association Canadian Institute of Planners 2004 Planning Awards Program

EDMONTON'S INDUSTRIAL LAND STRATEGY

Edmonton's Industrial Land Strategy is a strategic plan and implementation program. The Strategy is enduring and adaptable. It is consistent with its context, expectations and objectives based on Edmonton's economic development goals. The robust nine point strategic framework has an adaptable implementation program consistent with municipal roles and responsibilities that leverages participation by public and private sector partners.

The Strategy involves areas of municipal operations 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.

There are strong and direct linkages to the established Capital Budget Priorities Plan which directs all City capital spending. 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. These City investments will leverage investment and participation by other development interests, both private and public sector.

Key Elements in Edmonton's Industrial Land Strategy Maintaining Land Supply • A 3-year supply of industrial land

Financing Industrial Development • Adopt new financial methods • Equitable cost sharing • Funding capital projects

Marketing Industrial Land

Planning Industrial Areas • Integrated plans for land use, infrastructure and services . Redevelopment plans for established areas

Streamlined Development Approval Process • One window service • Information and guidance • Advance discussions • Implement the I Zone

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

. Active marketing and selling of city properties • Public and private sector • Use of G.I.S. and Internet partnerships technology • Implement the Greater Edmonton Competitiveness Strategy

• Vacant industrial land • Industrial development activity

XCELLENCE Alberta Association Canadian Institute of Planners 2004 Planning Awards Program •

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.

Adaptability of the implementation program allows it 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. The clarity and structure of the implementation program aids ongoing evaluation.

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 major 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 management group. The group is led by the Branch Managers of Policy and Planning Services and Development Compliance. A Senior Planner and Senior Development Engineer have responsibility for program development and implementation, co-ordination among City departments and agencies, outreach activities and monitoring.

• Alberta Association Canadian Institute of Planners 2004 Planning Awards Program

EDMONTON'S INDUSTRIAL LAND STRATEGY

Since being 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 of the City's web site to allow the City's GIS and Internet technology to be used for City and private sector industrial marketing and property sales.

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

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

• Initiating preparation of two industrial area land use and infrastructure plans.

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

• Initiating changes to the way the industrial development approval process is managed that recognize the specialized needs of industrial land development.

• Initiating an industrial land supply and demand monitoring program.

Positive Organizational Development within the City Administration has been motivated and guided by the process of preparing and implementing the 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, including initiatives reaching out to involve private sector interests, are the affirmation of the City's commitment to the aggressive and effective implementation of Edmonton's Industrial Land Strategy.

Edmonton's Industrial Land Strategy is exemplary in its approach to increasing employment opportunities for Edmonton's citizens and strengthening municipal finances by accommodating and attracting industrial businesses. The Strategy won commitment to effective and aggressive implementation from Council and the Administration, as well as cooperation from public and private sector partners.

Preparation of the Strategy and implementation program demonstrated merit and value in fields of professional planning practice, including: project design and management; research, consultation and evaluation; strategic planning; implementation programming; and organizational development.

The overall result is an example of excellence in strategic planning and implementation programming that is deserving of acknowledgement through the AACIP Awards Program.

Alberta Association Canadian Institute of Planners 2004 Planning Awards Program •

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Report 2004PDP045 - Attachment 1 - Page 1 of 24

Report to City Council

Table of Contents Topic

Page

Executive Summary

3

Introduction

6

Implementation Management

7

Maintaining Land Supply

8

Planning Industrial Areas

10

Industrial Development Approval Process

12

Financing Industrial Development

14

Building Infrastructure and Providing Services

16

City of Edmonton Strategic Industrial Land Development

18

Enhance the Marketing of Industrial Land

20

Strategic Economic Development Partnerships and Programs

22

Monitoring Industrial Land Supply and Demand

23

Conclusion

24

Report 2004PDP045 - Attachment 1 - Page 2 of 24

Report to City Council

Executive Summary Council approved Edmonton's Industrial Land Strategy on August 27, 2002, with a companion motion requiring a strategy evaluation report in February 2004. The following is a summary evaluation of the implementation program in its first year.

Key Elements in Edmonton's Industrial Land Strategy LAlliMMEMMINEMEI lgr

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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 • Public and private sector • Use of G.I.S. and Internet partnerships technology • Implement the Greater Edmonton Competitiveness Strategy

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

• Vacant industrial land • Industrial development activity

)=. The management structure for implementing Edmonton's Industrial Land Strategy is satisfactory. Implementation has been aided by the continued co-operation of members of the interdepartmental steering committee who oversaw preparation of the strategy. Progress on implementing the strategy is directly related to the commitment of resources to management and coordination. )=. Reports from organizations in the industrial land and property industry are persuasive in indicating that the supply of some types of serviced or immediately serviceable industrial land is under the strategy's three-year target. Rebuilding the supply of available properties,

Report 2004PDP045 - Attachment 1 - Page 3 of 24

Report to City Council

particularly for large single users and developer / builder developments, is an implementation priority for the strategy. )=. The planning program for industrial areas has had some success, but has not met expectations. Work on preparing plans for new industrial areas is behind schedule. Plan preparation is essential to the orderly, cost-effective development of Edmonton's industrial areas and to maintain the supply of land for industrial development. The planning program requires resources, either departmental staff or consultant services. Planning activity will be increased in 2004 by contracting planning and engineering consultant services.

• Industrial developers and builders benefit from approval process improvements implemented by the City of Edmonton, but will be subject to delays when development activity surges.

Specialized attention will be paid to industrial development applications to overcome obstacles specific to that sector of the development industry.

• Council has already adopted changes to financing policies and mechanisms for major city funded infrastructure and approved capital budgets for projects needed to support development in industrial areas. The study of the financial policies and mechanisms applied to industrial development that was mandated by the strategy is now in progress. Early results indicate the need for a separate review of infrastructure standards in industrial areas. It will begin in 2004.

• The Industrial Land Strategy elevates the importance of infrastructure projects serving industrial areas. This raises the priority of some of those projects in the Capital Priorities Plan. Increased activity in providing drainage and transportation infrastructure and public transit to industrial areas is consistent with the development needs of those areas. Continued infrastructure funding will be needed to open up new industrial areas for development.

• Providing land to developers and builders is the most direct means for the City to ensure an adequate supply of industrial land. Approval of the capital budget for land acquisition and development allows strategic purchases based on evaluated needs. The City should ensure it is positioned to increase land supply in the short term in response to identified shortage.

• New e-City and EDE web sites will support ongoing enhancements to City programs to sell land and promote itself as superior location for industrial businesses. Information and services available through web sites are useful to business site locators and people wanting to set up or operate a business in Edmonton. The web sites support the marketing activity of the City, EDE, Alberta Economic Development and the many private sector industrial realtors and developers who are Edmonton's front line marketers and promoters.

• There are ample ways to establish new strategic relationships and to build on existing ones to create economic development opportunities involving industrial land development.

Developments in the Edmonton Research Park, improved goods movement, co-operation on

Report 2004PDP045 - Attachment 1 - Page 4 of 24

Report to City Council

web site linkages and content, land development partnerships and researching commercial uses for waste are activities in progress. More strategic partnerships will be formed using available resources as opportunities arise.

The Industrial Land Strategy monitoring program combines statistics on land supply and development with information on the industrial property real estate market. The monitoring program will provide information useful to the City and private sector developers and realtors. Estimates of demand for industrial land and the land supply needed to meet the strategy's three-year supply target will improve as the program matures.

Overall, implementation actions are consistent with the strategy as approved by Council and have progressed as anticipated. Some activities have not met expectations largely due to competing demands on resources. The management committee and responsible departments will resolve the identified deficiencies.

If implementation continues to proceed in accordance with the strategy, the actions taken can be sufficient to avert a shortage of industrial land for industrial business development. In the longer term, the strategy can be a powerful tool for economic development. Progress on strategy implementation is directly related to the ongoing commitment of Council and Administration, the resources dedicated to implementation and appropriate allocation of those resources.

Report 2004PDP045 - Attachment 1 - Page 5 of 24

Report to City Council

Introduction City Council approved Edmonton's Industrial Land Strategy on August 27, 2002, initiating the strategy implementation program. Council directed Administration to prepare an evaluation report on the progress of strategy implementation in February 2004.

This report includes information on management and implementation since the strategy was approved. Activities completed or in progress are reported here and factors that facilitate or impeded progress are identified.

The Industrial Land Strategy is a set of policies, programs and action programs in each of the strategy's nine "key elements" represented on the chart on below. The organization of this evaluation report is consistent with the nine action areas.

Key Elements in Edmonton's Industrial Land Strategy EH

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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

Report 2004PDP045 - Attachment 1 - Page 6 of 24

Report to City Council

Implementation Management As recommended by the Industrial Land Strategy Directors Co-ordinating Committee, a program manager, appointed by the City Manager, will oversee the implementation of the strategy and update the implementation program as required.

Implementation of the Industrial Land Strategy is a corporate priority. Requirements for leadership and implementation cut across City branches and departments and extend to partners outside the Administration. A management committee consisting of members of the Planning and Development Department is responsible for directing, co-ordinating and monitoring strategy implementation.

The four person management committee is led by the Managers of the Planning and Policy Services and Development Compliance Branches. A Senior Planner and a Senior Development Engineer assigned to implement the strategy are also committee members. The committee was formed in March 2003 and meets regularly to set priorities and develop work plans.

Committee members are involved in implementation activity associated with each of the nine elements or action area of the strategy. The Senior Planner and Senior Development Engineer's responsibilities include direct implementation actions, co-ordinating activities across departments and partner agencies, and monitoring. The role of the committee is recognized among City departments and increasingly by private sector organizations involved in industrial land development.

The implementation program has benefited from an ongoing informal advisory role played by the members of the interdepartmental steering committee that oversaw the preparation of the strategy. The steering committee members also continue to facilitate co-operative interdepartmental action and, in some cases, direct or advise implementation activities within their own departments. Reformation of the interdepartmental committee to facilitate strategy coordination and adaptation is a consideration.

The direction of the implementation program remains closely aligned with the strategy as approved by Council. The rate of progress is directly related to the time commitments of management committee members. Ongoing commitment of resources for management and coordination is necessary for successful implementation of the strategy.

The management structure for implementing Edmonton's Industrial Land Strategy is satisfactory. Implementation has been aided by the continued co-operation of members of the interdepartmental steering committee who oversaw preparation of the strategy.

Progress on implementing the strategy is directly related to the commitment of time for program management and coordination.

Report 2004PDP045 - Attachment 1 - Page 7 of 24

Report to City Council

Maintaining Land Supply The City of Edmonton will work to ensure that Edmonton's major industrial areas have a minimum three-year supply of serviced industrial land, based on current trends, through public and private sector land and infrastructure development activities.

The Industrial Land Strategy sets a target supply of "ready-to-go" serviced or immediately serviceable land to ensure that sufficient and suitable land is available to accommodate industrial business development. The target is market sensitive and will vary from year to year depending on development activity. The industrial land market is driven by economic growth which is expected to remain strong. The regional employment growth forecast is shown on the chart below.

Edmonton Region Employment 1993 to 2008 600 550

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Estimates of the amount of land needed to meet the target will improve as the monitoring program matures. Information available now yields a rough estimate of the requirements for all uses — industrial, commercial, government, etc. — in Edmonton's business and employment areas at 140 to 200 net hectares per year, of which 50% to 75% would be industrial uses.

Available data for year-end 2002, shows a citywide supply of about 760 hectares of vacant land zoned 1:13, IM or IH. For land development purposes, only a portion of the supply is available to prospective buyers and only a portion of that meets the needs of the market. Reports from industrial realtors and developer/builders indicate a developing shortage of available land, especially large parcels suitable for large single users and developer/builder industrial developments. Large format warehouse retail uses compete with industrial uses for properties of this type in business and employment areas.

Report 2004PDP045 - Attachment 1 - Page 8 of 24

Report to City Council

In their 2004 forecast report, the industrial commercial realty firm Avison Young stated the following about the Edmonton industrial land and property market: "The demand for serviced land has been a growing problem due to the growth of the market.

Large tracts of fully serviced industrial land originally thought to be viable for ten years of industrial development are now being developed significantly ahead of expectations. In the past six months, we have had over 425,000 square feet of newly constructed space committed to by tenants. Owner / users have also committed to a similar amount."

In their 4th Quarter 2003 Edmonton Market Report, CBRE — CB Richard Ellis states: "New construction is driving the land market in both South and west Edmonton. The selection of parcels in excess of 10 acres is becoming scarce while parcels in excess of] to 5 acres still remain reasonable. The average price of industrial land has increased over the last half of 2003 to $175,000 per acre and in excess of $300,000 per acre for well-located quasi retail land."

Market sensitive reports from organizations in the industrial land and property industry are persuasive in indicating that the supply of some types of serviced or immediately serviceable industrial land is under the strategy's three-year target. Rebuilding the supply of available properties, particularly for large single users and developer/builder developments, is an implementation priority for the strategy.

Report 2004PDP045 - Attachment 1 - Page 9 of 24

Report to City Council

Planning Industrial Areas The City of Edmonton will undertake and facilitate new industrial planning activities to encourage development and redevelopment of industrial areas in an orderly, cost-effective way, and ensure development opportunities are continually available.

The Industrial Land Strategy's industrial area planning program has achieved some successes, but progress on preparing plans for new industrial areas has not met expectations.

Among the achievements of the planning program was a 2003 amendment to the Northwest Industrial Outline Plan, leading to immediate development activity in the Sunwapta Industrial Area. The plan included land use, drainage system design and collector access in the Sunwapta area. An Arterial Road Assessment system has been set up for the Sunwapta area to finance road building. A cost shared agreement for access to Sunwapta from Stony Plain Road was also arranged. An extension of 111 Ave between 170 Street and 178 Street to improve access to the Armstrong Industrial Area is under review.

Other planning activity has been localized and driven by the requirements of specific development proposals requiring plan amendments, rezoning, subdivisions and localized drainage and transportation system solutions.

Of the major planning activities listed in the Industrial Land Strategy, only the Sunwapta and Pylypow Industrial Area plans were initiated. Completion of the Pylypow plan was scheduled for 2003, but has been delayed into 2004 by the need to resolve significant land use issues involving conservation of a natural area and placement of city infrastructure. The project includes the completion of functional plans for the Roper Road Extension and 34 Street north of Whitemud Drive.

No other major plans have been initiated. New plan preparation has been stalled by competing demands for staff time due to a high volume of planning applications resulting from surging development activity in 2003. High rates of development make the need to prepare new industrial areas plans more pressing.

Action by the City to initiate planning for new industrial areas is needed well in advance of the time when the land supply available for industrial development in existing planned areas has been exhausted. More resources to prepare industrial plans will be applied in 2004 by allocating staff time and contracting planning and engineering consultant services.

Current assessments indicate that the amount of undeveloped land in areas designated for business and employment uses is below the level needed to sustain 30 years of growth as

Report 2004PDP045 - Attachment 1 - Page 10 of 24

Report to City Council

required by Plan Edmonton. Administration has initiated an assessment of land supply and opportunities to designate new business and employment areas.

The planning program for industrial areas has had some success, but has not met expectations. Work on preparing plans for new industrial areas is behind schedule. Plan preparation is essential to the orderly, cost-effective development of Edmonton's industrial areas and to maintain the supply of land for industrial development. The planning program requires resources, either departmental staff or consultant services. Planning activity will be increased in 2004 by contracting planning and engineering consultant services.

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Report 2004PDP045 - Attachment 1 - Page 11 of 24

Report to City Council

Industrial Development Approvals Process The City of Edmonton's streamlines development approval processes and enhanced communication and customer service will facilitate the development of industrial land and buildings.

Industrial land developers have benefited from streamlined development approval processes, although much of the benefit was masked in 2003. Process improvement was matched against vigorous development activity that taxed the resources of planning and engineering consultants who prepare applications and City staff who review them. The rate of development is reflected in the following charts showing a ten-year high in the number of subdivided industrial lots endorsed and a surge in the amount of industrial land coming under servicing agreements.

Industrial Subdivided Lots Endorsed 1993 to 2003

50 45 40 35 30 25 20 15 10 5

0 Subdivided Lots Endorsed

0) 10 CO rCO 0) 0) Co 0) 0) 0) 0) 0)

Co Co

Co

0 0 0 0 0 0 0 0 NNNN

Year

Industrial Lot Servicing 1993 to 2003 120 H 100 80 0 Lot Servicing in Hectares a

60 40

S

20 Co CD C)

"4' 0) Co

LO

CS) 0)

CO 0) 0)

N0) 0)

CO CD 0)

Co Co Co

0 0 0

0 0

Co 0 0

Co 0 0

NNNN

Year

Report 2004PDP045 - Attachment 1 - Page 12 of 24

Report to City Council

Process improvements from business re-engineering, information technology applications and better public information resources are effective, lasting and ongoing. Capabilities for submission of development applications, payments and licenses via the internet will improve operating efficiency for both developers and City staff. Electronic circulation of applications within Administration is being expanded to reduce circulation times.

More and better information on procedures, regulations and design standards, as well as status information on individual applications is being made available on the e-City web site. Drainage guidelines have been revised and rewritten to improve clarity and facilitate communication.

Through the first year of strategy implementation, City staff have reviewed and tracked industrial development applications to identify obstacles and problems. Discussions with UDI and real estate industry representatives have been conducted to identify and consider issues specific to industrial development. The specialized experience gained will be used to facilitate the progress of future applications.

Industrial developers and builders benefit from approval process improvements implemented by the City of Edmonton, but will be subject to delays when development activity surges. Specialized attention will be paid to industrial development applications to overcome obstacles specific to that sector of the development industry.

Report 2004PDP045 - Attachment 1 - Page 13 of 24

Report to City Council

Financing Industrial Development The City of Edmonton will review its financial policies and mechanism and adapt them to the unique needs of the industrial development business where necessary to facilitate the development of industrial land, and will seek new sources and methods for financing major infrastructure.

The review of financial policies and mechanisms used for financing infrastructure serving industrial developments was initiated in 2003 and is in progress. The study is led by Asset Management and Public Works.

Sanitary and stormwater drainage infrastructure is often the costliest component of infrastructure for industrial developers and the financing mechanisms are the most complex. Drainage financing solutions may have parallel applications for transportation financing mechanism. Any significant change to financial policies and mechanism will require Council approval.

An interim result of the study is the recognition that issues around financing industrial development are closely tied to the standards for infrastructure that the City requires in industrial areas. A review of infrastructure standards in industrial areas will be initiated in 2004, using preliminary work done for both drainage and transportation systems. Representation from the development industry is an integral part of the financing study and initial work on reviewing standards. Industry representatives helped identify issues and considered solutions appropriate to development in industrial areas.

A major advance for development of industrial areas was the adoption of utility based financing for stormwater management. This has made required funds available for major drainage projects that support development in industrial areas. Another advance was the introduction of the Arterial Road Assessment to help pay for major road construction on an equitable basis.

The Industrial Land Strategy and the Infrastructure Strategy recognize the importance of infrastructure for economic development. Council approval of the two strategies raised the capital budget priority of major drainage and transportation projects serving industrial areas.

Higher capital budget priorities have advanced the schedules of a number of capital projects serving industrial areas.

Acting on direction to seek alternative approaches to financing infrastructure the City obtained financial contribution commitments from adjacent industrial landowners for work on the 184 Street and 156 Street rail grade separation connections.

Council has already adopted changes to financing policies and mechanisms for major City-funded infrastructure and has approved capital budgets for projects needed to support development in industrial areas. The study of the financial policies and

Report 2004PDP045 - Attachment 1 - Page 14 of 24

Report to City Council

mechanisms applied to industrial development that was mandated by the strategy is now in progress. Early results indicate the need for a separate review of infrastructure standards in industrial areas. It will begin in 2004.

Report 2004PDP045 - Attachment 1 - Page 15 of 24

Report to City Council

Building Infrastructure and Providing Services The City of Edmonton will build transportation, drainage and other infrastructure in Edmonton's industrial areas at the rate required to meet demand for industrial land and provide services that support business activity.

Responding to the need for infrastructure serving industrial area, Administration has pursued a program of planning, designing and building drainage and transportation infrastructure. Current projects are listed below.

Major Drainage Infrastructure Projects Supporting Industrial Development • • •

Mill Creek Roper Ponds will support development in the Southeast, principally Roper Industrial Area The Elmjay Wetlands will support development in Maple Ridge Industrial Area Design work on a sanitary sewer forcemain is preparation to extend sanitary services across the Transportation and Utility Corridor to Lewis Farms and Winterburn Industrial Areas.

Major Transportation Infrastructure Projects Supporting Industrial Development Roper Road (59 Street — 61 Street) construction of a 3 lane arterial roadway 111 Avenue (184 St — Anthony Henday Drive) in conjunction with developers Yellowhead — 184 Street Interchange / rail grade separation (ongoing) Yellowhead — 184 Street Interchange / 184 Street rail grade separation (2004)

• • • • • • • •

Whitemud — 34 Street interchange (2004-5) Design Gateway Boulevard Interchange/23 Avenue rail grade separation (2004-5) 137 Avenue Widening (127 Street — 170 Street) (2004 / 2006)

• •

184 Street (100 Avenue — 105 Avenue) improvements (2004) Arterial road connections to Southwest Anthony Henday Drive (2004-7)

Yellowhead — 156 Street Interchange / 156 Street rail grade separation (2005-7)

The Province is committed to the construction first stages of the Southwest leg of Anthony Henday Drive from Whitemud Drive to Calgary Trail by 2006, and the first stage of the Southeast leg of Anthony Henday Drive by 2007.

With the objective of reducing costs for industrial development, new drainage and roadway standards for industrial areas are being considered along with issues relating to transit service provision, including sidewalk connections, bus pads, and street-lighting. While new standards

Report 2004PDP045 - Attachment 1 - Page 16 of 24

Report to City Council

are under review, the requirements for individual applications continue to be treated on the merits and details of each circumstance.

One City service valued by many businesses is public transit and the availability of transit is an important consideration in locating their businesses. Industrial areas with adequate transit attract these businesses. ETS is undertaking gradual expansion of service to industrial areas.

In 2003, improved service along 50 Street was implemented. Small bus service into the South industrial area was started in the last two years (Route 321) as well as expansion of service in the Northwest Industrial area (Route 129, with new connections to West Edmonton Mall). A priority area for new industrial transit service is the Mistatim Industrial area. "Growth" buses required to serve industrial areas are identified in the approved 2004 — 2008 CPP. A report will be presented to Council in March 2004 identifying recommended corridors and modes for staged development of High Speed Transit in the Southeast, West, North, and Northwest sectors of the City. Implementation of these higher standard transit routes, in particular in the Southeast corridor, will result in provision of enhanced transit to and from industrial areas.

The Industrial Land Strategy elevates the importance of infrastructure projects serving industrial areas. This raises the priority of some of those projects in the Capital Priorities Plan. Increased activity in providing drainage and transportation infrastructure and public transit to industrial areas is consistent with the development needs of those areas.

Continued infrastructure funding will be needed to open up new industrial areas for development.

Report 2004PDP045 - Attachment 1 - Page 17 of 24

Report to City Council

City of Edmonton Strategic Land Development The City of Edmonton will play an active and strategic role as a land developer through strategic land acquisition, planning, land development, development partnerships and land sales, to ensure that land is available for industrial development.

The City's industrial land development program was revitalized by Council's approval of the Industrial Land Strategy and capital budget allocations for industrial land acquisition and development. Previous policy governing land sales focused on disposal of surplus lands and inventory reduction. Through the Industrial Land Strategy the industrial land development program is a powerful economic development tool.

From 1997 to 2003, the City sold 194 hectares of industrial land and serviced 40 hectares of industrial land. The City has a budget to service 52 hectares in 2004, subject to planning approvals.

City land holdings in White Industrial Area should be build-out in 2004, but holdings in Ellerslie Industrial Area (36.4 hectares) and Pylypow Industrial Area (60.7 hectares) can be developed, subject to planning approvals, beginning in 2004. Longer term development lands are located in Rampart Industrial Area (64.8 hectares) and Maple Ridge Industrial Area (50.6 hectares). Land requirement for City road maintenance facilities will reduce the land available in Maple Ridge.

In the 2004 capital budget, Administration recommended and Council approved a $4 million capital budget allocation to make strategic purchase of land in industrial areas and $6.6 million to prepare land for development. This will ensure the City has an ongoing capability to respond to supply shortages in the industrial land market through land development and sales. The City is prepared to use land acquisition as a strategic tool to remove obstacles to development and open up new industrial areas to both public and private sector developers.

The objective of the City's land development program is to maintain its inventory at a minimum of 40 hectares of serviced and immediately serviceable industrial properties. At that level, the City's inventory and development activity will leave ample room in the industrial land market for investment by private sector developers.

It is expected that the City's industrial development program in Ellerslie and Pylypow will provide sufficient City inventory in south Edmonton until 2006. Consequently, Administration is pursuing acquisition of raw industrial land parcels that could be developable by that time.

Providing land to developers and builders is the most direct means for the City to ensure an adequate supply of industrial land. Approval of the capital budget for land acquisition and development allows strategic purchases based on evaluated needs. The City should

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Report to City Council

ensure it is positioned to increase land supply in the short term in response to identified shortage.

Report 2004PDP045 - Attachment 1 - Page 19 of 24

Report to City Council

Enhance the Marketing of Industrial Land The City of Edmonton will implement enhanced active marketing pro grains and use the City's advanced information technology to make marketing and real estate information readily available to prospective users of industrial property.

Enhancements to marketing industrial land are most clearly identified in the development of web sites that are the new information source of choice for business site locators. The web sites include promotional material, property listings and other information useful to business site selector, property developers and business people.

The development of web sites is an enhancement that supports traditional marketing programs and practices of the City, EDE, and the many people and companies involved in the development and sales of industrial properties in Edmonton.

In 2003, Edmonton's e-City "www.edmonton.ca" web site was launched, including Industrial Land Strategy and Industrial Land Sales pages. A "For Business" topic page links to information about land development and setting up and operating a business in Edmonton.

In 2003, EDE launched a regional site selector web site directing users to business site selection information on Edmonton and neighbouring municipalities. In early 2004, EDE launched a new "www.edmonton.com" web site including new promotional material for Edmonton and the region. EDE has also produced a new generation of promotional material in a variety of formats — video, PowerPoint, report and brochure - for general use and to support the Greater Edmonton Champions program.

In 2003, the Edmonton Real Estate Board connected its web site to the "www.icx.ca" web site linking Edmonton's industrial and commercial property listing systems to this new national site aimed at a world-wide audience of realtors and business site selectors.

The above web sites are interlinked and the City web site has links to a number of development companies with active industrial park developments in Edmonton. The e-City and EDE web sites are also accessed by links to Alberta Economic Development's property locator web site "www.albertafirst.com," and promotional web site "www.alberta-canada.com."

New e-City and EDE web sites will support ongoing enhancements to City programs to sell land and promote itself as superior location for industrial businesses. Information and services available through web sites are useful to business site locators and people wanting to set up or operate a business in Edmonton. The web sites support the marketing activity

Report 2004PDP045 - Attachment 1 - Page 20 of 24

Report to City Council

of the City, EDE, Alberta Economic Development and the many private sector industrial realtors and developers who are Edmonton's front line marketers and promoters.

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Report 2004PDP045 - Attachment 1 - Page 21 of 24

Planning & Building

Permits & Licenses

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Strategic Economic Development Partnerships and Programs The City of Edmonton will participate in strategic partnerships and programs to capitalize on economic development opportunities that involve industrial land development.

Representatives from the City Administration have been active participants in committee work of the EDE initiated Greater Edmonton Competitiveness Strategy. Business development and promotional activity that attracts, retains or grows businesses contributes to the development of industrial areas and the growth of Edmonton's employment and tax bases.

A current project is a proposal to build a multi-tenant wet lab building in the Edmonton Research Park. The building will provide space for emerging biotechnology and nanotechnology companies. The project is viewed as an important step in accommodating the space and facility requirement of technology companies on route to commercialization of their products.

Administration is also participating with EDE on the preparation of a broader strategy to bring new development to vacant lands in the Edmonton Research Park. Alberta Research Council is a participating stakeholder.

The Edmonton Region Commodity Flow Study was completed in 2003. A summary project report is available on the e-City web site. The results have been presented to a number of organizations including Economic Edmonton Development and the Alberta Capital Region Alliance. They are being used to assess needs for and benefits of capital roadway projects in the Edmonton Region. The regional travel model, used in project assessment, is being upgraded in 2004 to incorporate a more explicit representation of goods movement.

The City is has been involved in industrial land development partnerships with private sector development companies. The City West industrial park was a partnership with WAM Development Group. New partnership arrangement ranging from land development to innovation approaches to joint funding of infrastructure will be pursued where appropriate.

The Edmonton Waste Management Centre is partnering with the University of Alberta on research that will lead to commercialization opportunities involving waste recycling.

There are amply ways to establish new strategic relationships and to build on existing ones to create economic development opportunities involving industrial land development.

Developments in the Edmonton Research Park, improved goods movement, co-operation on web site linkages and content, land development partnerships and researching commercial uses for waste are activities in progress. More strategic partnerships will be formed using available resources as opportunities arise.

Report 2004PDP045 - Attachment 1 - Page 22 of 24

Report to City Council

Monitoring Industrial Land Supply and Demand The City of Edmonton will develop and maintain a reliable information base on vacant industrial land, land absorption rates and market trends.

A monitoring program for the Industrial Land Strategy was initiated in 2003. Some statistics are available for previous years, but the baseline year for land use statistics that form the basis of land supply monitoring is 2002.

The monitoring program will track inventories of vacant land and development activity.

Development data will include subdivision, rezoning, servicing and building permit information by industrial area. Related statistics on economic growth and market trends will be incorporated.

Statistical data will be input to monitoring activity that incorporates information on activity in the industrial land market. The City will use its in-house expertise in real estate and input from private sector realtors who have expressed interest in working with the City to improve information on current and forecast industrial real estate activity.

The priority for the monitoring program will be to further develop the database to improve estimates of land demand and the amount of available serviced and immediately serviceable industrial land. This will improve estimates of the development activity needed to meet the Industrial Land Strategy's three-year land supply target in each major industrial area.

The following baseline data has been tabulated for each industrial neighbourhood in the City's three major industrial areas. The information here is summarized by major industrial area.

Vacant Lands and Lots — Year—end 2002 Industrial Area

AG Agriculture

AGI Industrial Reserve

Parcel

Parcel 40 37 38

IB Light Industrial

IM Medium Industry

IH Heavy Industry

Hectare 70.05 208.66 174.15

Parcel 16 22 20

Hectare 20.31 8.69 42.75

452.86 115 893.29 277 237.58 476 46 875.17 Totals Total Vacant Parcels: 972 Lots Total Land in Vacant Parcels: 2530.65 Hectares Note: This table does not included vacant parcels that can be created by subdivision of sparsely developed lots.

58

71.75

Northeast Northwest Southeast

3 33 10

Hectare 42.42 603.49 229.26

Hectare 216.84 210.21 466.24

Parcel 40 112 125

Hectare 5.50 120.65 111.43

Parcel 135 237 104

The Industrial Land Strategy monitoring program combines statistics on land supply and development with information on the industrial property real estate market. The monitoring program will provide information useful to the City and private sector developers and realtors. Estimates of demand for industrial land and the land supply needed to meet the Strategy's three-year supply target will improve as the program matures.

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Report to City Council

Conclusion The Industrial Land Strategy is an appropriate approach to ensuring that Edmonton has sufficient and suitable land available to accommodate new and growing industrial businesses. Strategy implementation is a long-term process that will be adapted to the changing needs of Edmonton's industrial land and property market. Implementation of the strategy will become more effective as experience is gained and methods are refined.

Overall, policies and actions initiated and completed in the first year of implementation are consistent with the strategy as approved by Council. Most activities have progressed as anticipated, but some have not met expectations. The management committee and responsible departments will resolve the identified deficiencies.

Elevation of the priorities of infrastructure projects serving industrial areas has advanced the timetable for a number of projects. Revitalization of the City's industrial land development and sales program will allow the City to take direct action to meet demand and open up new areas for development. The monitoring program is established and will provide increasingly valuable information as it matures.

More activity in the industrial area planning program is needed to prepare new plans and update outdated ones. This will require resources through re-allocation of staff and contract consultants.

Plans are needed well in advance of the time existing planned areas are built-out to allow lead time for budgeting and building necessary infrastructure.

City staff will work to ensure productivity gains from streamlined development processes are not lost to high volumes of applications. Applicants and their consultants should share this responsibility by ensuring their submissions meet acceptable standards.

Works in progress on rationalizing financing mechanisms and development standards need to deliver solutions that will help Edmonton remain competitive in the region's industrial land market. More specialized attention to obstacles specific to industrial developments will facilitate the industrial development process. A number of marketing activities and strategic partnerships are in place. There is ample room to expand City activities in these areas as time and resources become available.

If implementation continues to proceed in accordance with the strategy, the actions taken can be sufficient to avert a shortage of industrial land for industrial business development. In the longer term, the strategy can be a powerful tool for economic development. Progress on strategy implementation is directly related to the ongoing commitment of Council and Administration, the resources dedicated to implementation and appropriate allocation of those resources.

Report 2004PDP045 - Attachment 1 - Page 24 of 24