edmonton.com
Business Plan 2010 Edmonton Economic Development Corporation
November 12, 2009
CONFIDENTIAL - FOR INTERNAL USE ONLY
TABLE OF CONTENTS Leadership | Innovation | Recognition 1. EXECUTIVE SUMMARY ..................................................................................................... p. 1-2 2. INTRODUCTION .................................................................................................................. p. 3-4 2.1 Mission
2.2 2.3
Vision Core Values
3. KEY DRIVERS....................................................................................................................... p. 5-8 3.1 Mandate 3.2
Current Economic Climate
3.3
Link to “The Way Ahead”
3.4
2009 EEDC Long Term Strategic Plan
4. EEDC STRATEGIES AND 2010 PRIORITIES ........................................................................ p. 9-14 Priority #1: Community Engagement Priority #2: Catalyst for Change Priority #3: Foster Innovation Priority #4: Grow Key Assets and Industries Priority #5: Global Appeal Priority #6: Global Recognition 5. CORPORATE OVERVIEW - Core Business Unit Priorities ............................................... p. 15-22 5.1 Shaw Conference Centre 5.2
Tourism
5.3
Economic Development
5.4
Edmonton Research Park
5.5
External Relations
5.6
CFO and Administration
5.7
Human Resources
6. FINANCIAL PLAN ............................................................................................................ p. 23-26 6.1 Operating Budget 6.2
Capital Budget
7. APPENDICES ..................................................................................................................... p.27-34 APPENDIX A - Indicators of Success APPENDIX B - EEDC Statement of Operations APPENDIX C - 2009 - 2013 Capital Program
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
1 EXECUTIVE SUMMARY Leadership | Innovation | Recognition Edmonton Economic Development Corporation (EEDC) is an independent corporation established by the City of Edmonton. It is responsible for managing the Shaw Conference Centre, managing the Edmonton Research Park and delivering coordinated and cost effective tourism and economic development initiatives for Edmonton. EEDC’s purpose is to create sustainable economic growth and development for Edmonton with the vision of having Edmonton recognized as one of the world’s top five mid-sized cities by 2030. The 2010 Business Plan is designed to be an incremental step toward achieving this vision, through the creation of priorities and initiatives for EEDC to focus on, execute and measure over the next year. In preparing its business plan for the 2010 fiscal year, EEDC has considered four major drivers. The first of these is EEDC’s mandate to promote economic development. The second driver is the current economic climate. The third driver is The Way Ahead, the City of Edmonton’s strategic plan. The fourth driver is EEDC’s long term strategic plan that was developed earlier this year in the context of the economic conditions anticipated for the region. Significant due diligence was undertaken to ensure that EEDC’s Business Plan and Strategic Plan would be complementary and work in tandem with the Province of Alberta’s Economic Development plan and sectors of focus. EEDC’s strategic plan outlines a vision of Edmonton that is focused on increasing the standard of living for Edmontonians. The plan is centered on 2 strategic goals: • Enhancing income growth – This is a leading driver for standard of living. The focus on income growth is required to ensure that residents participate and benefit from growth in the region, through an increase in material well being. Income growth in Edmonton is tied to the growth of a knowledge economy. • Improving the quality of life – EEDC considers quality of life to constitute anything that enhances the livability of Edmonton, and makes it a more desirable place to live and visit. Quality of life is one of the leading drivers for future success, as it influences Edmonton’s ability to attract and retain smart people and investment. The availability of smart people dictates the strength of a knowledge economy, as they are the ones that generate new ideas and opportunities. Smart people are viewed to be innovative, creative, and seek out solutions to today’s and tomorrow’s problems. With future economic success now being tied to smart people, the goals of income growth and quality of life become interdependent. Smart people can choose to live anywhere they wish and quality of life is usually a key factor in their decision. Without the quality of life, income growth is more challenging to attain. In pursuit of these goals EEDC continues to be guided by the 3 strategic focuses of leadership, innovation and recognition. Within the framework of these focuses and the context of our key drivers, 6 priorities have been identified for 2010. These priorities each align and build towards EEDC’s long term vision.
Leadership 1. Community Engagement – community input, support and assistance for EEDC’s priorities. 2. Catalyst for Change - initiating action and dedicating internal resources.
Innovation 3. Foster Innovation - stimulate innovation by creating an environment where it can thrive. 4. Grow Key Assets and Industries – building and supporting the foundation for knowledge based industries.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
1
Leadership | Innovation | Recognition Recognition 5. Global Appeal – addressing quality of life and tourism development opportunities. 6. Global Presence – increasing visibility and recognition of Edmonton on a global stage. The following diagram depicts EEDC’s strategic focuses and how they relate to the organization’s 2010 Business Plan priorities and initiatives. The goals of Income Growth and Quality of Life are long-term and can only be accomplished over the course of several years. The priorities identified for 2010 are a single component of a multiyear strategy, designed to achieve the goals. Internally each priority is supported by 2 initiatives. Subsequent years will build upon the foundations achieved in 2010.
Top Five Mid-size City (Standard of Living)
Income Growth Quality of Life Leadership
Innovation
Community Engagement
Catalyst for Change
Foster Innovation
Grow Key Assets & Industries
- Business & Economic Leader’s Forum
- Vibrant Urban Core
- Technology Commercialization Strategy
- Port Alberta
- Mobilize Tourism Industry
- Expanded Convention Space
- Research Park Development
- Economic Diversification - Life Sciences - F.I.R.E. - Advanced Technology
Recognition Global Appeal
Global Recognition
- Tourism Development
- Digital Strategy - Enhanced Global Presence
- Quality of Life
2010 Strategic Focuses Priorities
2010 Initiatives
While EEDC’s business plan is designed to make Edmonton a world-class city, this goal will be achieved through the efforts of many, including EEDC. Achieving this goal will require dedication and perseverance from the organization, the Board, the City, business & community leaders, and external stakeholders. Recognizing the need for external support and assistance is essential. Actively mobilizing the support required is critical for success.
2
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
2 INTRODUCTION Leadership | Innovation | Recognition Edmonton Economic Development Corporation (EEDC) is a corporation established by the City of Edmonton (City) for the purposes of promoting economic development. In addition to its core economic development responsibilities, the City has also assigned to EEDC responsibility for tourism development, the management of the Shaw Conference Centre (SCC), and management of the Edmonton Research Park. In 2009, EEDC developed a long-term strategic plan to guide the organization as it moves towards achieving its vision. The strategic plan provides a high level roadmap that outlines the organization’s efforts over the next 1520 years. The short-term priorities and initiatives contained within the annual business plan, were developed in context with the strategic plan and the 2009 Business Plan. The 2010 Business Plan also aligns with the strategic focuses of the organization: Leadership, Innovation and Recognition. This business plan demonstrates how EEDC will accomplish the goals and objectives that move the organization towards its vision.
2.1 Mission “To promote the sustainable economic growth and development of Edmonton”. For EEDC, sustainable economic growth is best equated to growth in the standard of living. Standard of living is a combination of quality of life and income growth. Subordinate to this, but still critical to EEDC’s role, is to ensure Edmonton is recognized globally.
2.2 Vision “To ensure Edmonton is recognized as one of the world’s top five mid-sized cities by 2030”. EEDC defines a leading mid-sized city as a city with one of the highest standards of living, and a place where people choose to work, live and visit. Being recognized as one of the top five cities will be measured through international ratings of relative quality of life and prosperity.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
3
Leadership | Innovation | Recognition 2.3 Core Values In 2009, EEDC embarked on a process to determine core values for the organization. The process for determining the organization’s core values included input from all employees. The core values process was reflective of the importance management has placed on determining values which reflect EEDC’s culture and priorities. For EEDC, the core values had to represent not only what the staff held as important, but also frame how employees are expected to conduct themselves and behave within the organization. The core values chosen are representative of EEDC’s principles and morals. They are designed to guide the organization and staff in all aspects of work. Our Values are promises to ourselves and our stakeholders to promote the economic development of the Edmonton region through: Leadership Excellence. We are leaders and positive role models in all we do. Integrity. We do the “right thing” and honour our commitments. We ensure our work environment is safe and we demonstrate ethical behavior at all times. Respect. We embrace open communication, fairness and diverse perspectives. Spirit of Innovation. We are open to new ideas, take informed risks, and encourage creativity to achieve competitive advantages. Pride and Passion. We recognize balance is important and we strive to make Edmonton and our organization a great place to live and work.
4
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
3 KEY DRIVERS Leadership | Innovation | Recognition In preparing the annual business plan for the corporation, the Board of Directors and management of EEDC considered a number of factors that have influenced the development of the plan. These factors or key drivers are discussed below.
3.1 Mandate In 1992, EEDC was established as an independent corporate entity by the City of Edmonton. With its formation, the City transferred into EEDC management responsibility for four distinct functional areas that had previously been the responsibility of separate organizations, either within or affiliated with the City of Edmonton. These functional areas were: -
Promotion of economic development Promotion of tourism development Management and development of what is now known as the Shaw Conference Centre Management and development of the Edmonton Research Park
In establishing EEDC, it was the intention of the City to create an organization that could exploit the natural synergies that existed between these different functional areas. EEDC is also responsible, on behalf of the City, for TEC Edmonton. TEC Edmonton is the joint-venture entity created by the University of Alberta and EEDC for the purposes of commercializing Research and Development. The vision, goals and objectives of EEDC were created within the framework of the organization’s mission. Additional due diligence was then conducted to ensure the organization aligned to the City’s strategic plan. The 2010 priorities and initiatives outlined in this business plan are specific to the EEDC organization.
3.2 Current Economic Climate The economic climate from 2008 - 2009 is best described as turbulent. In the past 20-months, economic conditions worldwide have deteriorated significantly. The price of oil dropped from a high of $150/barrel to approximately $35/barrel, and then began to rise. EEDC’s 2009, and 2010 Business Plan are based on an average annual oil price of $60 - $80 a barrel. The organization remains confident with this forecast for 2010. Oil prices continue to have an impact on Edmonton’s economy. With declining volumes of conventional oil production, and an escalation of oilsands developments, the day-to-day fluctuations in oil prices are less important than the expected long-term price of oil. The expected long-term price of oil influences future investment in the region, and therefore becomes a better barometer for gauging economic conditions for Edmonton. Long-term oil prices are expected to increase from their current levels, and this would be beneficial for future economic conditions in the region. Edmonton has not been immune to the recessionary forces that have affected the world. Edmonton’s unemployment rate exceeded 7% in August of 2009. This rate of unemployment is above the ideal natural rate of unemployment (~5%) for an industrialized economy. However, it remains well below the 10%+ unemployment rate currently experienced throughout parts of Ontario. EEDC believes that Edmonton’s economy is well positioned to endure the impacts of the current economic decline.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
5
Leadership | Innovation | Recognition The short-term ramifications of the recession are predominately affecting the ability of industry and government projects to continue. The provincial government is being significantly impacted by declining revenues, a result of depressed natural gas prices. A rebound in natural gas prices, and subsequently provincial coffers, is not anticipated for the next 18-month period. Natural gas royalties account for a significant portion of provincial revenue. The anticipated reduction in provincial revenue may impact current and future infrastructure spending in the region. Therefore, it follows that a sharp V shaped rebound is not anticipated for the region. The longer-term outlook for the region remains positive. Investment and interest in the oilsands continues, and businesses in the region continue to maintain a positive perspective on the future. The current economic conditions have delayed any discussion of up-graders in the region in the near-term. However, the recession is resulting in declining construction prices, which is a positive sign for future investment in the region. Current conditions have amplified the need for businesses to become more productive and efficient. EEDC is not immune. Pressure on the organization’s operating budget has resulted in a need for a greater internal focus on innovation and the ability to do more with less. EEDC continually strives for increased efficiency and resultsorientated action The current economic conditions have been factored into EEDC’s 2009 Business Plan. Therefore, no material change in direction is required for 2010. A gradual rebound in economic conditions is anticipated over the next 18 months. Edmonton and Alberta will likely precede the rest of the country out of the recessionary conditions currently experienced. EEDC’s long-term outlook for Edmonton also remains unchanged. As the global economy improves, development in the oilsands will continue and Edmonton will again surpass the natural rate of employment.
3.3 Link to “The Way Ahead” EEDC’s vision of 2030 aligns with and supports the City of Edmonton’s vision for the future. The City of Edmonton created “The Way Ahead”, a strategic plan for improving both the quality of life and services for citizens, now and in the future. The Way Ahead’s vision depicts a city of mixed cultures and recreational opportunities, as well as a powerful and diverse economy. From universities and colleges, to research parks and downtown office towers, Edmonton will be a centre for not only life sciences and advanced technologies, including green technologies, but also an economic powerhouse, a logistics and transportation hub, and an entrepreneurial centre. The City’s plan is driven by the principles of: • • • •
Integrated planning Sustainability Livability Innovation
EEDC used The Way Ahead’s vision and principles as an input into the organization’s strategic planning process and annual business plan. The priorities outlined for 2010 were vetted to ensure that this fundamental alignment continues. The focus on more smart people provides the region with the essential component for future economic success. In this regard, EEDC’s focus is viewed as complementary to the Provincial strategies. The Province of Alberta is focused more specifically on industries and their growth, while EEDC is focused on the foundational building blocks and sectors that will stimulate and feed future growth.
6
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition 3.4 2009 EEDC Long-Term Strategic Plan EEDC’s desire for creating a leading mid-sized city can be achieved through increasing the standard of living in the region. An increased standard of living will be driven off the strength of the region’s knowledge economy and prerequisite to this, the availability of smart people. Knowledge economies are dependant on maintaining an abundance of smart people that are able to generate new ideas and opportunities. Smart people are viewed to be innovative, creative, and seek out solutions to today’s and tomorrow’s problems (the term smart people is not a specific reference to educational attainment). Smart people are needed in all industries ranging from hospitality to life sciences and technology. Considering smart people as an asset is a departure from the traditional view where natural resources and geographic location were the sources of competitive advantage. Developing, attracting and retaining smart people is critical, as are the mechanisms to share knowledge and ideas within the community. Flowing from this change is an increase in the importance of “Quality of life” aspects within the greater economic development framework, as these are now paramount in attracting and retaining smart people. To ensure a sustainable increase in the standard of living is achieved, EEDC is focused on 2 goals: 1. 2.
Enhancing income growth – This is a leading driver for standard of living. The focus on income growth is required to ensure that residents participate and benefit from growth in the region, through an increase in material well being. Improving the quality of life – EEDC considers quality of life to constitute anything that enhances the livability of Edmonton, and makes it a more desirable place to live and visit. This is one of the leading drivers for having more smart people and it also improves the city for existing residents.
Smart people are able to live almost anywhere they wish to. Technology and globalization now make it so that the ideas they generate, the opportunities they pursue and the innovation they create are not bound by geographic borders. As such, the choice of where they choose to live becomes more and more a factor of the quality of life they desire. In this way, quality of life and income growth are becoming mutually inter-dependant.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
7
Leadership | Innovation | Recognition To achieve a sustainable increase in the standard of living, EEDC will pursue the following long-term objectives for income growth and quality of life. Income Growth Sustained economic growth for Edmonton will be achieved through better utilization of human and capital resources, rather than by increasing the availability of resources. Growth achieved using the same resources more efficiently will result in increased incomes, and thereby standards of living. The focus areas for income growth are: • Develop and nurture future industries – Development of a knowledge-based economy, reducing dependency on unrefined oil and gas. • Innovation – Develop into a regional hub of innovation, anchored by a world class research park. • Entrepreneurship – Efficient ability to move from ideas to markets. • Advanced Education – A leading centre for education with increased levels of educational quality and attainment. • Immigration – Increased inflow of global talent, resulting in greater diversity. • Productivity improvements – A leader in technology adoption, resulting in higher productivity rates than other regions. • Optimized labour pool – Increase education levels and migration of workers into higher value positions. Quality of Life Quality of life for a city consists of social and qualitative issues such as safety, health, advanced education, culture, diversity and many others. Given the endless array of possibilities to become involved with, EEDC is focused on the areas where the organization can make a positive contribution. The focus areas for quality of life are: • Downtown development – An active and vibrant urban core. • River valley development –Edmonton’s crown jewel is developed to achieve a balance between protecting the natural beauty, and providing access and amenities, thereby creating a distinctive asset. • Global events and festivals – Increasing Edmonton’s global profile by hosting world class events (Expo 2017). • Increased global presence – Be recognized as a leading mid-sized city through strengthened image, reputation and accessibility. • Social improvements – Improved living standards and an increased quality of life for all residents. The outcome from these strategic objectives will be more smart people and a more desirable place to live. The two interdependent components combine to result in improvements to the region’s standard of living.
8
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
4 EEDC STRATEGIES AND 2010 PRIORITIES Leadership | Innovation | Recognition EEDC aims to help Edmonton achieve the objectives defined for Income Growth and Quality of Life by continuing to focus efforts on Leadership, Innovation and Recognition. The diagram below depicts a simplified perspective on how EEDC will accomplish the goals and objectives the organization has identified. Edmonton
Stakeholders Industry
Community Engagement
Catalyst for Change
Foster Innovation
Grow Key Assets / Industries
Global Appeal
Global Presence
Community NGO
Leadership
Innovation
Recognition
Government
Communicate to the World Partnerships of influence
Change Agent
Idea Generation
Strengthen Economy
City of Choice
Create Awareness
Feedback
Leadership: As a starting point, EEDC must ensure strong engagement between the organization and all stakeholder communities. Creating these relationships ensures EEDC is focused on the right activities and priorities. These partnerships of influence need to provide input, validation, feedback and assistance in execution of EEDC’s initiatives. EEDC will also pursue Edmonton’s interests by becoming a catalyst for change. This can be accomplished by starting a process and inspiring others, or by initiating action and completing an initiative with EEDC’s internal resources. Innovation: Innovation is critical for creating the knowledge economy of the future. New innovation can flourish and thrive when ideas are supported by the right environment. EEDC will utilize its assets and programs to create this environment. Creating a knowledge economy requires developing industry sectors that have the potential to be globally competitive through innovation. To create long-term sustainable economic growth, EEDC needs to focus on our six targeted sectors of Financial Services, Life Sciences, Advanced Technologies, Advanced Education, Tourism and Energy. Recognition: Ensuring Edmonton is a city of choice is critical to attracting and retaining smart people, tourists, knowledge and investment. Building the quality of life and assets that appeal to both residents and visitors will make us a globally attractive centre. Creating the awareness and recognition required to inform the world of Edmonton’s strengths is a continuous process. Global recognition of Edmonton facilitates the attraction of tourists, investment, and immigration of more smart people to the region.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
9
Leadership | Innovation | Recognition Each of the steps identified are discrete, yet inter-dependent. The actions identified through each of these steps demonstrate how EEDC will use Leadership, Innovation and Recognition to achieve success. Based on EEDC’s focus areas and the key drivers previously discussed, EEDC’s Business Plan has identified six priorities for 2010. Leadership 1. Community Engagement 2. Catalyst for Change Innovation 3. Foster Innovation 4. Grow Key Assets and Industries Recognition 5. Global Appeal 6. Global Presence The next section outlines how EEDC intends to apply this framework and the six priorities to advance the strategy. Each priority has 2 supporting initiatives for 2010, which describe the actions the organization intends to execute.
10
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition Leadership EEDC is in a unique position to influence change. It can influence this change in any of three ways: • Take the initiative and execute • Be a contributing member of a team • Be a vocal advocate, supporting the initiatives of other groups Acting as an agent for change, the organization could have the ability to ignite positive change, and advocate for what is in the long-term interests of the region. However, leadership must be earned. This entails actively demonstrating commitment through actions, focus, and results. EEDC’s actions will earn this leadership role and enable it to garner a broad base of support for its initiatives, which will then generate the assistance required to pursue the goals and objectives of the organization. Priority #1: Community Engagement Successfully achieving EEDC’s vision will require committed input and support from external organizations. Support for EEDC’s priorities and Edmonton’s long-term goals will require active feedback and participation from a broad base of Edmonton business people, residents, tourists and EEDC Board members. Creating successful partnerships will enable EEDC to influence initiatives that fall outside of its traditional mandate. 2010 Initiatives: • Business and Economic Leader’s Council EEDC will engage 100 to 150 business leaders and other stakeholders to support and endorse the organization’s economic development plan, and encourage external parties to participate in its execution. EEDC will identify the Council’s top 5 concerns regarding economic growth in Edmonton. • Mobilize Tourism Industry EEDC is uniquely positioned to receive feedback from visitors and partners that can be used to identify opportunities to make Edmonton a destination of choice. EEDC will leverage its 600 tourism partners to ensure the industry is engaged, identify issues, and develop a plan. Priority #2: Catalyst for Change EEDC needs to take an active role in creating change. Management philosophy indicates that a good leader must play a multitude of roles (supporting, directing, encouraging and facilitating) for success to occur. A leader does what is necessary to ensure success. EEDC can become a catalyst by initiating action and dedicating internal resources. 2010 Initiatives: • Vibrant Urban Core There is a strong indication that 2010 could be a significant year for downtown development. EEDC can be an instrumental component in the design and makeup of the aggregate downtown plan, through its assets managed and its leadership role within the community. A vibrant urban core is an essential element for creating an environment conducive for a generation of smart people and the knowledge economy they will help to create. EEDC will champion and support significant downtown projects. • Expanded Convention Space The SCC is near capacity and future growth in economic impact is minimal. In the 1st quarter of 2010 EEDC will present a long term convention strategy for Edmonton. The strategy will include a recommendation on how to increase available convention space, in conjunction with all interested parties. For the balance of 2010, EEDC will focus on the business plan to pursue this recommendation.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
11
Leadership | Innovation | Recognition Innovation Innovation is critical for long-term sustainable economic growth. For Edmonton to become recognized as one of the world’s leading mid-sized cities by 2030, it needs to build an advanced economy that is envied and emulated worldwide. Creating this type of knowledge-based economy requires an almost obsessive compulsion for innovation. Innovation can come in the form of technology applications, or simply new ideas applied within existing organizations. The global economy is shifting, and the economies who recognize this and are able to ‘do more with less’ will be the global winners. Priority #3: Foster Innovation A knowledge economy is driven by innovation. Innovation in products, processes, and business models will be instrumental for future growth. Innovation and commercialization diversifies the economy, and builds on Edmonton’s current strengths. Creating the environment where innovation flourishes and smart people can excel is essential. EEDC’s role is to stimulate innovation by creating the foundational building blocks for an environment where innovation can thrive, and also to facilitate the process for capitalizing on the innovation that occurs. 2010 Initiatives: • Technology Commercialization Strategy TEC Edmonton plays a vital role in the commercialization of new technologies within the broader regional technology commercialization strategy. EEDC will become an active joint venture partner in TEC Edmonton, changing the operating model based on engagement in the provincial technology commercialization strategy by third quarter 2010. • Research Park Development 2010 will see three out of the five remaining lots filled at the Research Park. This is the first step toward expanding the Park to the south. EEDC will also complete the “Southland” expansion business case. Priority #4: Grow Key Assets and Industries Growth in the region’s key assets and industries is essential for economic development. EEDC continues to focus on the 6 key sectors, as noted on page 9, that are deemed to be existing strengths with the future potential to be globally competitive. A significant portion of these sectors are knowledge based industries with key strengths in the region. The future of these knowledge industries will require persistent innovation and a plethora of smart people for their growth and success. EEDC continues its efforts to diversify the regional economy from its reliance on unrefined natural resources. This requires building the foundational supports for new knowledge based industries to thrive in the region. EEDC’s focus is to continue building the foundational supports required for the growth of industries like Financial Services, Life Sciences, Advanced Technologies, and Advanced Education. 2010 Initiatives: • Port Alberta EEDC will assume a management role for the Port Alberta initiative, determine if there is a viable business model, and enact an appropriate action plan. If the business model is approved by stakeholders, the business case will be implemented and funding pursued. • Economic Diversification EEDC will execute on the Financial Services and Advanced Technology strategies and also develop the strategy for Life Sciences.
12
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition Recognition Quality of life plays an instrumental role in achieving an increased standard of living. Recognition as a worldclass city requires Edmonton to be world-class. Edmonton has the potential to shine on the world stage, if improvements can be made in some aspects of the city. EEDC will actively champion essential quality of life and tourism development opportunities as identified by business leaders and tourism groups. EEDC will strive to continually improve the city and subsequently quality of life, making it a place where people choose to visit and live. Priority #5: Global Appeal Making Edmonton a destination of global appeal is predominantly an issue of quality of life and visitor amenities. Both are important for enhancing our global image and attracting visitors. The community engagement initiatives outlined earlier will provide EEDC with a list of issues and priorities as determined by the business and economic leaders of the region, and also from feedback from visitors. 2010 Initiatives: • Tourism Development From the feedback provided by visitors and the tourism industry, EEDC will aid in the development of new events and services, and initiate four cultural awareness training programs to ensure Edmonton is properly positioned in the future with reasons for visitors to come, or stay longer. • Quality of Life It is contingent upon EEDC to utilize the information and feedback received from the Business and Economic Leader’s Council and other community engagement activities. This input will be used to formulate initiatives to rectify or improve 2 of the quality of life issues identified. Priority #6: Global Recognition Promoting Edmonton’s strengths on a global stage is essential for future growth. EEDC’s goal of more smart people places a significant reliance upon immigration to complement the existing wealth of smart people already residing in the region. Attraction of people, investment, business, and tourists are all facilitated through an increased recognition of Edmonton on a global stage. 2010 Initiatives: • Marketing Strategy In 2010, specific interest will be placed on digital media. EEDC will better leverage the opportunities social media and the internet provide. EEDC will be positioned to deliver information in the way our customers want to access it. However, it should be noted that this is only a single component of a broader multi-year communications and marketing strategy designed to increase Edmonton’s global presence. • Enhanced Global Presence EEDC will actively promote and increase awareness about Edmonton’s unique strengths. Targeted messaging based on needs, desires and attitudes will allow EEDC to tailor messaging to specific groups. Building on the “awareness campaign”, EEDC will leverage the solid investment by the City to build alignment between digital, travel and mainstream media.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
13
Shaw Conference Centre
14
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
5 CORPORATE OVERVIEW Leadership | Innovation | Recognition CORE BUSINESS UNIT PRIORITIES The initiatives that support the corporate priorities, as outlined in the preceding section, are explained in further detail below. The following section provides an overview of the different divisions and working groups within EEDC, and discusses all of the programs, including the priority initiatives, that will be undertaken by those units during 2010.
5.1 Shaw Conference Centre (SCC) The SCC is a City owned asset managed by EEDC for the purpose of generating economic and social value. The SCC is one of the leading convention centres in Canada. In 2008, the SCC hosted 730 events and had in excess of 500,000 people pass through the building. Of these events, 47 were conventions that generated more than 145,000 room nights from out of town convention attendees. Convention attendees are the primary driver of economic impact for the SCC. The social value the SCC contributes to the city, includes being a venue for local events, driving green initiatives and supporting local arts and culture. This role provides leadership in our community, and is also a differentiator in the market place. The SCC will continue to focus on activities that grow its value in the community. In 2010, the SCC will support the organization’s key priority areas by focusing on the following items: Expanded Convention Space • The SCC’s economic impact has plateaued in recent years and the existing facility is encountering capacity constraints. An external report has forecasted that over the next 20-years, the demand for convention space will significantly exceed the capacity of the existing facility. In 2009 EEDC initiated a project to determine a long-term strategy for meeting future convention demand. This report will be presented to the Board and City Council in the 1st quarter of 2010. • Pending the recommendation of the report, funding programs need to be pursued, and a formal development plan and business plan will be created. In addition to the priority areas, the following are ongoing activities the Shaw Conference Centre will continue to pursue in 2010: o Sell and host ongoing events, continue to maximize economic impact, social value, customer experience and building utilization, while continually driving efficiencies. o Attract events in key industry sectors, and then increase local awareness of events by highlighting the draw of knowledge and smart people. o Co-sponsor bids with other Edmonton or Edmonton-Calgary corridor facilities. o Be a leader by continually developing new Green Initiatives, including Dine Alberta (a program to encourage locally sourced inputs), composting, and upgrading to energy efficient electrical and environmental equipment. o Promote, initiate and host initiatives supporting the Arts & Culture community including culinary awards, hosting Arts & Culture, and continue with existing community events like “Everyone for Edmonton” and “Homeless Connect”. o Work with other large convention/conference organizers in Edmonton to attract world class events. o Pursue efficiencies to reduce energy usage and cost, specifically through salon level lighting controls and HVAC renewal and exhibition hall lighting replacement.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
15
Leadership | Innovation | Recognition 5.2 Tourism The focus of Edmonton Tourism has traditionally been on the attraction of visitors, and the strengthening of local tourism partners. Tourism attraction activities are designed to establish Edmonton as a must see destination, drive tourism visitation and enhance the local economy. Attraction focuses on the 4 key areas of • • • •
Meeting & Business Travel Event Attraction Leisure Travel and Film Attraction
The tourism partnership focus is on supporting the industry with training, tools, facilitation and business generation. The tourism industry in Edmonton is recognized as a leader provincially and nationally for its cooperation and cohesion, and will continue to build on this strength. Going forward Edmonton will need to be equipped to serve a changing clientele and demand. An evolving focus of Tourism Development is to ensure that the local events and services align with changing demand expectations. This occurs through communication, training and advocacy. In 2010, Tourism will support the organization’s key priority areas by focusing on the following items: Mobilize Tourism Industry • Demonstrate value for 600 industry partners by creating future opportunities for partner growth or increasing revenues. • Leverage relationships to keep industry engaged with the issues, and mobilized toward cohesive action, thus driving an imperative for action. EEDC will conduct one additional comprehensive partner survey. • Develop the “meetings easy” service offering to include a critical mass of local participants and drive adoption of the service as a way to stimulate visitor attraction. “Meetings easy” is a web-based system for rapidly providing conference and meeting planners with proposals from local venues and suppliers. Tourism Development • Formalize role as the voice of the tourist: Collect, analyze, circulate visitor and partner opinions & survey feedback to ensure we are focused appropriately. • Facilitate creation of new events and services based upon identified opportunities. Ensure our service portfolios develop and improve, giving tourists additional reasons to visit or stay longer. • Initiate 4 industry training sessions and support for new cultural training and awareness programs (eg. serving Chinese visitors) that position Edmonton to capture evolving opportunities. • Leverage relationships, data and resources to support and pursue additional direct flights. • Update the visitor information centre (VIC) operating model to serve the evolving needs of visitors, thereby keeping VICs relevant. • Assess the strategic placement of VIC locations to ensure maximum value, and develop opportunities for creating incremental revenue. EEDC will double the revenue received from the sale of Edmonton attraction tickets. In addition to the priority areas, the following are ongoing activities Tourism will continue to pursue in 2010: o Traditional visitor attraction (business, leisure, events and film). o Address shifting global demand and strategic opportunities, like the 2010 Olympics. o Continue to present new avenues for global attraction. o Support Expo 2017 planning.
16
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition 5.3 Economic Development The Economic Development group is primarily responsible for driving long-term sustainable income growth for Edmonton. Included within this mandate are activities related to diversity, innovation, labour, entrepreneurship, productivity, investment, retention and expansion. In this regard, relationships (regionally and abroad) are especially important tools for influencing and facilitating access to capital, markets and networks. While the objective of income growth is a traditional platform for economic development, the explicit linkage to smart people and quality of life is a more contemporary line of thought, and one that has been embraced within the organization. The primary focus for economic development will be within the targeted sector areas previously identified. Business attraction activities will progress selectively, and within targeted sectors. It is also anticipated that investment attraction will become a future priority for the organization. In 2010, Economic Development will support the organization’s key priority areas by focusing on the following items: Business and Economic Leader’s Council • Communication of EEDC’s 2010 priority initiatives to 100 - 150 of the leaders in the region who participate in the Business and Economic Leader’s Forum. Thereby creating awareness and community engagement for EEDC’s plans. • Explain how the initiatives contribute to EEDC’s strategic goals for the Edmonton region, and the rationale behind these goals. • Solicit endorsement of EEDC’s strategy, and generate a commitment to support and participate in the initiatives. Vibrant Urban Core • Champion the development of our downtown core. • Facilitate a big-picture blue-print for the urban core, including the supporting entities involved and clearly depicting how various initiatives are related. • Identify downtown attributes and amenities that need to be incorporated to ensure growth. • Actively share the urban core blue-print with key stakeholders, and implicated projects (e.g. Arena; Quarters; Capital Boulevard; River Valley; Infill; Amenities; etc.). Port Alberta • Assume a management role for the Port Alberta initiative. Determine if there is a viable business model, and enact an appropriate action plan. • In conjunction with Edmonton International Airport, develop business plans for air-freight cargo, and the Port Alberta transportation/logistics strategy. Coordinate targeted air cargo attraction strategy driven off of the business case. • Pursue and secure infrastructure funding.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
17
Leadership | Innovation | Recognition Economic Diversification • Concentrate on 3 sectors: o Execute the strategies for the Financial Services and Advanced Technologies sector. o Create a long-term development strategy for the Life Sciences sector. o Support for the Energy and Advanced Education sectors will be provided as appropriate, with particular importance given to areas where they may interrelate with other priority sectors. • Support the development, attraction and retention of smart people. • Create a high-level inventory and understanding of the organizations and business within the Edmonton region. • Attract investment and development into the region. • Develop and maintain an inventory of potential investment opportunities in the Edmonton region, and leverage this as a key tool for investment attraction. In addition to the priority areas, the following are ongoing activities Economic Development will continue to pursue in 2010: o Labour and productivity programs focused on industry and businesses. o Investment and business attraction activities will be conducted where appropriate. o Maintain relationships and circulate sector marketing packages to Alberta consulate offices abroad.
18
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition 5.4 Edmonton Research Park The Edmonton Research Park (ERP) provides special-use lease space and entrepreneurial support services to Edmonton based ‘start-up’ technology companies. Covering 245 acres including the ARC and Southlands, the ERP is currently home to 55 technology focused businesses. This includes 37 start-up and early growth companies currently housed in 3 incubators or multi-tenant buildings owned by EEDC (Research Centre 1, Advanced Technology Centre and Biotechnology Business Development Centre). The focus of the ERP is on maximizing the potential success of businesses involved in technology commercialization – specifically in the areas of biotechnology (health and wellness), clean technology, nanotechnology, energy extraction, and process support services. The business group also carries the responsibility for ensuring maximum effectiveness of TEC Edmonton, and a duty to assist in and/or effect increased collaboration amongst other technology commercialization support entities in the region. These functions contribute to growing Edmonton’s knowledge based economy and innovation. The ERP is focused on activities to stimulate innovation and facilitate commercialization in Edmonton. In 2010, ERP will support the organization’s key priority areas by focusing on the following items: Technology Commercialization Strategy • Refinement of TEC Edmonton’s operating model, scope, and mandate to meet the changing environment. • Secure the Province as a TEC Edmonton investor. • Secure representation in regional municipal technology commercialization strategy development, and promote EEDC’s position within the evolving Provincial Technology Commercialization strategy and ensure alignment with Alberta Innovation. • Actively communicate progress and concerns with EEDC’s stakeholders to ensure full engagement from a wider audience. Research Park Development • Secure tenants, who operate within the focus areas, for the development of at least 3 of the 5 remaining lots. Ensure all meet participation requirements, including incubator space and commitment to student programs. • Advance the Research Park Expansion through the completion of the Southlands business case. • Obtain commitment from the Province to restrict the Southlands development for research purposes In addition to the priority areas, the following are ongoing activities the Edmonton Research Park will continue to pursue in 2010: o Effectively manage the Research Park and other existing assets for the purpose of stimulating innovation, including challenging and supporting tenants to progress through development stages. o Maintain maximum occupancy levels within EEDC owned facilities; Research Centre 1, Advanced Technology Centre and Biotechnology Business Development Centre. o Look for other institutions funding Advance Technology (ie. Helmhold Association, Germany).
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
19
Leadership | Innovation | Recognition 5.5 External Relations External Relations is a supporting unit focused on fostering strong relationships between EEDC and our many stakeholders. This is achieved through the creation of mission-driven and market-focused strategies and tactics that build EEDC’s value, further its vision, and raise awareness of Edmonton. The group consists of Marketing, Communications and Strategic Relations. The External Relations function will focus on activities to support the other business units and build external profile. In 2010, External Relations will support the organization’s key priority areas by focusing on the following items: Quality of Life • Prioritize input from the Business and Economic Leader’s Council and sector lunches to determine community concerns, and initiate action plans to address 2 quality of life issues identified. • Undertake initiatives, based on community priorities and EEDC’s ability to effect change. Marketing Strategy • Focus on the development of a digital media strategy that encompasses but is not restricted to social media. Edmonton’s “Awareness Campaign” is one tool within the broader digital strategy. This digital media strategy will integrate into EEDC’s overall marketing strategy. • Update and maintain EEDC web sites with a consistent look, feel, and message. Enhanced Global Presence • Create an advisory committee of prominent industry personnel. The purpose of the committee will be to endorse and provide advice on the long-term (multi-year) marketing and communications strategy designed to enhance the awareness of Edmonton globally. • Create an encompassing media/marketing strategy that ensures alignment of mainstream, travel and digital media. In addition to the priority areas, the following are ongoing activities that the External Relations group will continue to pursue in 2010: o Harmonize external messaging to ensure maximum impact and consistent details. o Promote the sustainability of Arts & Culture by utilizing EEDC assets. o Timely and relevant Annual / Quarterly Reports. o Internal communications.
edmonton .c o m CONFIDENTIAL - FOR INTERNAL USE ONLY 20
Leadership | Innovation | Recognition 5.6 CFO and Administration Finance and Accounting (F&A) is responsible for maintaining the accounts of the company in a manner that supports, and is consistent with Generally Accepted Accounting Principles (GAAP). F&A is also responsible for ensuring appropriate internal controls and policies are defined and adhered to. The focus in 2010 is on creating more formal system automation and mechanizing points of internal control. This includes the delivery of new inventory and purchasing systems in 2010. In addition to providing leadership in the execution of certain annual and periodic processes (the annual budgeting process for example), F&A sees itself as a support service to the other Divisions/Departments of the company and in 2010 will strive to refine processes and content to best meet the needs of these customers. Information Technology is responsible for the oversight, planning and administration of all of EEDC’s hardware, software and communications requirements at its four separate and distinct sites (Corporate office, SCC, Research Park and Gateway Park). In addition to supporting business unit initiatives in 2010, the focus for IT is on network reliability with programs to standardize hardware and virtualize servers intended for next year. Knowledge Management is responsible for EEDC’s internal strategic and corporate planning processes; economic analysis, research, and where beneficial, assisting EEDC divisions in the execution of programs and initiatives.
5.7 Human Resources From a Human Resources standpoint, efforts will continue on ingraining EEDC’s values and ensuring strong employee engagement. The group will also continue to support to all divisions with performance management tools, employee development, total rewards initiatives, strategic recruitment and regular measurement of employee engagement. Special focus for 2010 will be on managerial skills training for all supervisory staff and the identification and execution of competency improvements across the organization.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
21
Edmonton Research Park
22
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
6 FINANCIAL PLAN Leadership | Innovation | Recognition 6.1 Operating Budget The EEDC financial plan for 2010 represents the dollars required to complete the initiatives identified in this business plan. The proposed 2010 budget includes revenue of $22,314 thousand, expenses of $35,609 thousand and tax levy funding of $12,705. EEDC’s budget for revenue, expenses and capital is approved by the Board of Directors on an annual basis. While the Board approves the overall budget, the City allocates and approves the amount of tax levy funding that EEDC receives each year. Since approximately one-third of the expenses of the organization are funded by the tax levy; the City of Edmonton’s annual budget process is a critical component of the budget cycle. For 2010 the City of Edmonton’s operating guidelines are to limit the tax levy funding for all departments, boards and agencies to a 3% increase. This means the tax levy funding for EEDC will be $12,705 thousand or an increase of $369 thousand from 2009. Capping the increase to 3% for 2010 obviously creates challenges for the organization; however, EEDC recognizes the need to be fiscally responsible given the current economic downturn. In order to arrive at a budget for 2010 which limits the tax levy to the 3% increase, EEDC looked at ways to increase revenue and/or cost saving initiatives while still accomplishing the initiatives and goals required for the organization to achieve our overall strategic vision. All opportunities to achieve cost savings or revenue increases have been reviewed with a view to minimize any and all risks to EEDC. While both opportunities are included in the budget, it is difficult to increase revenue for EEDC as both the Shaw and the EEDC buildings at the Research Park are near or at capacity. Therefore, more of the focus is on cost savings and efficiencies in the short term. Many of these savings initiatives were previously identified and underway in the organization; given the 1.2% reduction to the tax levy funding in 2009 for EEDC from $12,485 thousand to $12,336 thousand. The initiatives identified in the budget process are aligned with the business plan. Details of the revenue and expense opportunities included in the budget are noted below. EEDC OPERATING BUDGET 2010 2009 APPROVED BUDGET
SCC
Total
2009 to 2010 Change
6,705
15,609
22,314
(622)
13,209 15,397 1,000 374 986 4,424
4,425 7,672 1,000 247 1,082 2,900
9,557 6,929 103 1,694
13,982 14,601 1,000 350 1,082 4,594
(773) 796 24 (96) (170)
400
400
-
-
-
400
18,017
17,773
35,790
17,326
18,283
35,609
181
9,604
2,732
12,336
10,031
2,674
12,705
369
Econ Dev. Tourism & ERP
SCC
Total
7,895
15,041
22,936
3,961 8,977 1,000 253 986 2,840
9,248 6,420 121 1,584
-
Total TAX LEVY
($’000’S)
REVENUE AND TRANSFERS
2010 PROPOSED BUDGET Econ Dev. Tourism & ERP
EXPENDITURES Personnel Costs Operating Costs TEC Edmonton Interest Expense Amortization & depreciation Overhead allocation Utilization of reserves
NET DEFICIT
(518)
-
(518)
(590)
-
(590)
(72)
Note: 2009 to 2010 change - (unfavourable)/favourable
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY 23
Leadership | Innovation | Recognition Revenue Opportunities Strategies in this category include revenue maximization and greater use of networks and partners. Many of these opportunities were previously included in the 2009 budget and business plan and continue into 2010. Opportunities in this area and included in the budget are: • Fill, as feasible, any remaining tenant vacancies in the Biotechnology Business Development Centre. • Streamlining of the Biotech leasing program to get approvals for participation in the program in a quicker manner. • Through the coordination of information and continued communication with partners such as the Destination Marketing Fund and the Edmonton Tourism Destination Region; Edmonton Tourism will look for cross funding opportunities in 2010. • Business development opportunities for the Visitor Information Centers from a sales and physical location perspective.
edmonton .c o m CONFIDENTIAL - FOR INTERNAL USE ONLY 24
Leadership | Innovation | Recognition Cost Savings Strategies in this category include operating cost savings, internal operational efficiencies, service level changes and new internal business models. Many of these opportunities were previously included in the prior year budget and continue into 2010. The implementation of some of these initiatives has initial upfront costs but will have incremental savings in the long-term. Opportunities in this area and included in the budget are: • A number of software packages currently under review will provide for integrated purchasing, inventory and cost controls throughout our food and beverage operations at the Shaw. Preliminary estimates indicate that production costs could be reduced overall by between one and two percentage points on more than $2,000 thousand of product costs. In addition, the elimination of some repetitive clerical tasks will allow for personnel to be reassigned to work of higher value. • The ongoing removal of obsolete light fixtures and HVAC equipment with up to date high efficiency replacements at the Shaw. Renovations in Salons 1, 2 and 3 at the Shaw include these features plus state of the art lighting controls activated manually or by motion and/or audio detectors to minimize the time lights are left on in vacant salons. The HVAC mixing boxes in all three salons have been replaced with digitally controlled units that reduce power consumption and allow for more precise temperature controls. • The main light fixtures in Halls B & C at the Shaw will also be replaced later this year or very early in 2010. This will reduce the power requirement by a minimum of 50% and allow for improved lighting control. • Given the economic downturn, hosting and travel costs will be minimized as appropriate. • Where feasible cross training of staff will be encouraged, especially where vacancies exist today, such as in Economic Development. Consultants to be used where economically viable. • Continued reduction of hours at the Visitor Information Centers. • Centralization of all marketing, communication and event planning across the organization. Communications synergies will be achieved by consolidating the areas of media relations, travel media relations, corporate communications-activity and the development of select social media. Marketing synergies will be achieved by consolidating marketing-related activity across the organization. Results will include more cohesion in deliverables, consistency in messaging and will allow leveraging between functions and divisions. • Consolidate delivery of web-related functions. This efficiency has begun and will continue. Results todate shows continuity in style, navigation and overall guidelines. Processes continue to be developed for integration across the organization with a central web office to ensure consistency. • Greater use of social media at the Research Park for advertising, and linking tenants to technology information. • Consolidation of corporate credit cards. • Information Technology purchasing power will continue to leverage City of Edmonton, where feasible (i.e. Cell phone plan). • Research Park in-house information technology support. Leverage internal staff for tenant issues which decrease costs and increase synergies. Regardless of the budget timeline for 2010, EEDC will continue to review cost and revenue initiatives to improve the overall efficiency and effectiveness of the organization. Complete details of the 2010 budget are contained in Appendix B.
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
25
Leadership | Innovation | Recognition 6.2 Capital Budget The 2009 City of Edmonton capital budget process approved funding for capital programs for the period 20092011. The details of the capital requests by EEDC and the subsequent approvals for this period are noted in Appendix C. Capital spending for EEDC is classified into three categories: 1. 2. 3.
Assets owned by EEDC financed with internal capital funds – i.e. tenant and building improvements at the Research Park. Assets owned or operated by EEDC with capital funds financed by the City – i.e. the Biotechnology Business Development Centre (BBDC). Assets owned by the City and financed by the City – i.e. the Shaw Conference Centre (SCC) and Visitor Information Centre.
The capital requests for 2010 fall under all three of the categories noted above. The SCC is over 25 years old and on-going capital maintenance is required to keep the asset operating effectively and allow it to be competitive with other Western Canadian convention centres. The City recognized the need for on-going capital maintenance funding last year and approved $1.6 million for each of the years 2009-2011 in the budget cycle. All of the maintenance projects for the SCC are scheduled around convention and event dates; therefore, there is some movement in the years the dollars will be spent but all funds approved are anticipated to be consumed over this three year period. Approximately $1,750 thousand is expected to be spent in 2010. The longer term requirements for the potential expansion of the SCC have not been included in the requests, noted in Appendix C, as the development plan is currently underway and alternative funding sources will be sought for a project of this size and magnitude. The total capital funding for the BBDC of $14.0 million was approved several years ago and the work to complete the building will continue into 2010. Additionally, upgrades to the Research Centre One building are required in order to attract new tenants for vacated space. These leasehold improvements in 2010 will either be self funded by EEDC or paid by the new tenants. Spending in 2010 is forecasted to be $1,500 thousand for the BBDC and $300 thousand at Research Centre One. For the years beyond 2010, several capital requests have been noted as possible requirements, however, these items are currently unfunded and the timing of the expenditures is still under review. These unfunded projects include the development of the lands south of the Research Park, parking lot paving and building maintenance upgrades at the Research Park and the possible location move of the Visitor Information Centre.
26
e d m o n t on.com CONFIDENTIAL - FOR INTERNAL USE ONLY
APPENDIX A -
Indicators of Success Leadership | Innovation | Recognition
EEDC Priority Items for 2010
Success Indicator
Leadership 1. Community Engagement Business Leadership Council Mobilize Tourism Industry 2. Leader and catalyst for change Vibrant Urban Core Expanded Convention Space
100-150 community leaders supporting strategy 125 meeting’s easy supporters Investment $ attracted Submit SCC development plan to City Council
Innovation 3. Foster Innovation Technology Commercialization Strategy Research Park Development 4. Grow Key Assets & Industries Port Alberta Economic Diversification
Secure Province as TEC Edmonton investor 3 of the 5 remaining lots committed by fourth quarter 2010 Port Alberta business case approved by stakeholders Life Sciences Strategy developed Execute F.I.R.E. and Advance Technology Strategies
Recognition 5. Global Appeal Tourism Development Quality of Life 6. Global Recognition Marketing Strategy Increased Global Presence
4 ADS courses 2 business and economic leader’s council initiatives undertaken Marketing and digital strategy completed and 450k hits to website 10% increase in value of earned media
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
27
APPENDIX B -
EEDC Statement of Operations
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) Annual 2010 Budget
2009 Forecast
% 2010 Budget - ‘09 Forecast
2009 Budget
2008 Prior Year
12,705 15,609
12,336 15,043
103% 104%
12,336 14,641
12,485 15,283
6,705 -
9,324 -
72%
7,895 400
15,042 -
35,019
36,703
95%
35,272
42,810
4,425 9,557 2,316 15,272 2,207 400 1,082 350
3,849 9,179 2,311 17,575 2,140 300 986 374
115% 104% 100% 87% 103% 133% 110% 94%
3,961 9,248 2,312 15,971 2,137 400 986 400 375
3,726 8,729 1,814 24,353 2,232 336 833 342
35,609
36,714
97%
35,790
42,365
Revenue City of Edmonton tax levy funding Convention Centre food, beverage and rental revenue Other external revenue Transfer from reserves
Expenses Salaries and related costs - ERT Salaries and related costs - SCC Salaries and related costs - Corp OH Operating and program costs Cost of food and beverage sold Capital maintenance Amortization of property and equipment Utilization of reserves Interest on long-term debt
Net operating surplus (deficit) for the period
(590)
(11)
(518)
445
1,082 (492)
986 (468)
986 (468)
833 (414)
Cash Flow for the period Add back depreciation & amortization Less financing payments
Cash Flow for the period
-
507
-
864
e d m o n t on.com 28
CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) SHAW CONFERENCE CENTRE
Annual 2010 Budget
2009 % 2010 Budget Forecast - ‘09 Forecast
2009 Budget
2008 Prior Year
14,641
15,283
400
-
15,268
15,396
Revenue Convention Centre food, beverage and rental revenue Transfer from reserves
15,609
15,043
-
-
16,086
15,493
104%
Direct Expenses Operating expenses
Gross Margin
104%
(477)
(450)
106%
(227)
(113)
103 400
121 300
85% 133%
121 400 400
137 336
503
421
119%
921
474
(980)
(871)
113%
(1,148)
Other Expenses Interest expense Utilization of reserves Property and equipment
Net operating surplus (deficit) from operations Corporate overhead charge
(587)
1,694
1,612
105%
1,584
1,433
Net operating surplus (deficit) before COE funding
(2,674)
(2,483)
108%
(2,732)
(2,020)
City of Edmonton tax levy funding
2,674
2,732
98%
2,732
2,709
-
249
-
689
Net operating surplus (deficit) for the period
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
29
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars)
ECONOMIC DEVELOPMENT, TOURISM, RESEARCH PARK
Annual 2010 Budget
2009 % 2010 Budget Forecast - ‘09 Forecast
2009 Budget
2008 Prior Year
Revenue External funding
6,705
9,324
72%
7,895
15,042
13,097
15,058
87%
13,938
21,615
(6,392)
(5,734)
111%
(6,043)
(6,573)
Direct Expenses Operating and program expenses
Operating Margin (Loss) from programs Other Expenses Depreciation and amortization Interest expense
Net operating surplus (deficit) from programs
1,082 247
986 253
110% 98%
986 253
833 205
(7,721)
(6,973)
111%
(7,282)
(7,611)
2,900
2,891
100%
2,840
2,409
Net operating surplus (deficit) before COE funding
(10,621)
(9,864)
108%
(10,122)
(10,020)
City of Edmonton tax levy funding
10,031
9,604
104%
9,604
9,776
Corporate overhead charge
Net operating surplus (deficit) for the period
(590)
(260)
(518)
(244)
e d m o n t on.com 30
CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) ECONOMIC DEVELOPMENT
Annual 2010 Budget
2009 % 2010 Budget Forecast - ‘09 Forecast
2009 Budget
2008 Prior Year
Revenue External funding
450
809
56%
900
1,620
3,226
2,871
112%
3,553
4,200
(2,776)
(2,063)
135%
(2,653)
(2,580)
Direct Expenses Operating and program expenses
Operating Margin (Loss) from programs Other Expenses Depreciation and amortization Interest expense
Net operating surplus (deficit) from programs
-
-
-
-
(2,776)
(2,063)
135%
(2,653)
(2,580)
1,401
1,396
100%
1,371
1,064
Net operating surplus (deficit) before COE funding
(4,177)
(3,458)
121%
(4,024)
(3,644)
City of Edmonton tax levy funding
4,177
4,024
104%
4,024
4,024
-
566
-
380
Corporate overhead charge
Net operating surplus (deficit) for the period
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
31
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) TOURISM
Annual 2010 Budget
2009 % 2010 Budget Forecast - ‘09 Forecast
2009 Budget
2008 Prior Year
Revenue External funding
3,738
6,021
62%
4,562
11,295
6,613
8,686
76%
7,279
14,273
(2,875)
(2,665)
108%
(2,717)
(2,978)
Direct Expenses Operating and program expenses
Operating Margin (Loss) from programs Other Expenses Depreciation and amortization Interest expense
Net operating surplus (deficit) from programs
-
-
-
-
(2,875)
(2,665)
108%
(2,717)
(2,978)
1,140
1,148
99%
1,128
1,060
Net operating surplus (deficit) before COE funding
(4,015)
(3,813)
105%
(3,845)
(4,038)
City of Edmonton tax levy funding
4,015
3,845
104%
3,845
3,855
-
32
Corporate overhead charge
Net operating surplus (deficit) for the period
-
(183)
e d m o n t on.com 32
CONFIDENTIAL - FOR INTERNAL USE ONLY
Leadership | Innovation | Recognition Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) RESEARCH PARK
Annual 2010 Budget
2009 % 2010 Budget Forecast - ‘09 Forecast
2009 Budget
2008 Prior Year
Revenue External funding - Research Park External funding - Dell and TEC
2,517 -
2,494 -
101% 0%
2,434 -
2,127 -
2,257 1,000
2,501 1,000
90% 100%
2,107 1,000
2,011 1,131
(1,007)
74%
(673)
110% 98%
986 253
Direct Expenses Operating and program expenses - Research Park External partnership costs - Dell and TEC
Operating Margin (Loss) from programs
(740)
(1,015)
Other Expenses Depreciation and amortization Interest expense
Net operating surplus (deficit) from programs Corporate overhead charge
Net operating surplus (deficit) before COE funding City of Edmonton tax levy funding - Research Park City of Edmonton tax levy funding - Dell and TEC Net operating surplus (deficit) for the period
1,082 247 (2,069) 360
986 253 (2,246) 347
92% 104%
(1,912) 341
833 205 (2,053) 284
(2,429)
(2,593)
94%
(2,253)
(2,337)
839 1,000
735 1,000
114% 100%
735 1,000
657 1,240
(590)
(858)
(518)
(440)
edmonton .c o m
CONFIDENTIAL - FOR INTERNAL USE ONLY
33
APPENDIX C -
2009 - 2013 Capital Program
Leadership | Innovation | Recognition Edmonton Economic Development Corporation 2009-2013 Capital Program (in thousands of dollars) (Budget) (Forecast) 2009 2009 2010 05-99-3002
Biotechnology Business Development Centre
1,237
900
1,500
2011
2012
2010-2013 2013 Total
337
1,837
- New projects for wet lab and misc upgrades
08-99-3003
Advanced Technology Centre - Parking Lot Paving
05-99-3004
Research Centre 1 - Building Upgrades
07-99-3005
Advanced Technology Centre
500
500
300
1,200 300
1,200 600
2,000
2,000
12,000 12,000
39,000
4,000
4,000
- Building Upgrades
08-99-3006
Research Park - Southlands*
-
15,000
- Likely won’t commence until 2011 at the earliest
08-99-3007
Research Park
-
- Joint Venture
08-99-3008
Gateway Park - Replacement - Potential upgrade or move
06-99-0004
Shaw Major Building Upgrades
2,000
2,000
1,650
1,550
1,750
1,500
1,957
2,524
7,731
3,387
2,950
3,550
17,137
15,957
21,724
58,368
* - assume servicing costs of 100 acres would be included in COE budget - approved by City of Edmonton
e d m o n t on.com 34
CONFIDENTIAL - FOR INTERNAL USE ONLY