Investment Attraction and the Northern Community Investment Readiness program

1. Investment Attraction and the Northern Community Investment Readiness program

2. Investment Attraction A Competitive Process • Companies seeking to expand or relocate their businesses, carefully investigate multiple locations in an effort to get the most cost effective location that still meets their operational requirements. • At times companies may have some key constraints such as proximity to raw resources / suppliers / markets / labour / etc. • At other times depending on the industry / sector there may be few if any constraints that limit their flexibility to choose locations. • It is important to realize that Northern Ontario communities are often competing globally for potential investments. This increases our competitors and our potential opportunities.

3. Investment ReadinessA Competitive Aspect You Can Control • Some aspects of our competitive stance are within our control and others are not. (Natural Resources / Location) (Infrastructure.) • One of the easiest and most effective aspects we can control is our readiness to deal with investors expectations / informational needs. • The expectations of site selectors / investors regarding response time has changed dramatically in the past 10 years.

4. How Ready Do You Need To Be??? • The term “instant gratification” should come to mind when developing systems & processes to respond to investors inquiries. • A community ED department needs the knowledge & resources to respond quickly to potential investors and they need to be able to access instantly current information that can be distributed at a keystroke.

5. Investment ReadinessWhat Is Investment Readiness? • Knowledgeable professional points of initial contact for potential investors. • Up to date comprehensive information on your community and region that can be quickly accessed and distributed. (Six months old is not up to date.) • A comprehensive investment attraction strategic plan that takes into account: • All community regional assets. • Identification of target sectors / markets that would benefit from those assets. • Existing barriers to investment (and a plan to remove / reduce these.) • Gaps in investment structure and strategies to address these shortfalls. • A plan to leverage regional strengths for the benefit of multiple communities. • Government and private assistance in achieving attraction goals.

6. What Are They Looking For / Comparing • Site selectors work for the investor and are paid to locate the BEST location for an investment utilizing a set of parameters set by the investor. • These parameters can differ depending on the investor but they look at issues such as: • Available real estate & cost. • Housing Prices (Does executive level housing exist if required.) • Industrial & Commercial properties (Serviced / Zoning / Brownfields.) • Industrial parks. • Development Incentives. • Access to utilities and cost (Electricity, Water, Waste Treatment / Gas.) • Comparative tax structures (Often compared to other Jurisdictions both domestic and international.) • Building / development costs and processes (Red tape effectiveness of local councils.) • Labour force / costs / level of unionization/ skills. • Access to transportation / markets. • Other key employers / competition (Supporting & Complimentary Industries.) • Population statistics (Often used for labour calculations / Strength of internal market / Regional statistics are important.) • Infrastructure: education facilities / communications / airports / railways / etc. • Current investment opportunities ( What exists / Future large opportunities (Ring of Fire.) • Your current economic strategy / Economic Strategic Plan (Does it support investment.) • Effectiveness of all levels of government.

7. Steps To Investment Readiness Steps To Investment Readiness Training Information Gathering Planning Competing

8. Preparation is Key Training • Successful investment attraction requires careful planning, preparation, & coordination. • Every community is at a different stage of preparation and has differing strengths and challenges. • Key steps to facilitate successful investment attraction. Assets Market Study Needs Analysis Plan Compete

9. Training Training • Ensuring that anyone engaged in investment attraction activities has the proper skills and training should be the first step for any community. Examples for investment attraction: • Seeking new investment & choosing targets. • Dealing with “site selectors”. • Accessing funding / resources. • Working with consulates and trade associations. • Preparing informational packages and business cases (what do they want.) • Identifying / Working with stakeholders: unions / realtors / councils / government / business. • Knowing how to work the floor / booth at trade shows. • Training is often done on a regional basis to reduce cost, strengthen regional initiatives and facilitate networking and cooperation regionally. • Can include regional municipalities, FN, EDO’s, private sector reps, real estate, municipal councillors. • Training can be arranged to be flexible in delivery.

10. Asset Inventory Training • A community needs to conduct an inventory of the assets that are available for use by investors: Commercial real estate, natural resources, workforce, access to utilities, transportation infrastructure, idled structures, communications structure, healthcare / education facilities, distance to markets, existing businesses, etc. • An effective strategy is often to prepare a regional asset inventory which is often more competitive. • Think graphically when you design your inventory (good map, photograph, drawings.) • Consider various formats for your land inventory (computerized database, web sites.) • Include public properties in your land inventory. • Make sure your land use planning supports your assets as a competitive advantage: • Flexible official plan and zoning by-laws, can help accommodate a range of new industrial and commercial uses. Assets

11. Market Studies Training • With the assets available what industry / business sector is most likely to consider investments. (Individual / regional.) • This is especially critical for communities that are experiencing declines in long term key industries. • Can lead to change in economic makeup of community when the change is dramatic. • Impact study. • Important that these studies generate contact / prospect lists that can be pursued. • Try and keep prospect list to 1 or 2 key opportunities. Assets Market Study

12. Needs Analysis Training • With 1 or more sectors identified as potential investors, perhaps a study of those sectors specific needs is required. • Your market study based on your asset inventory provides direction. • Now you ask the companies themselves for input on your suitability and any gaps that may act as a final barrier to investment. • Some identified gaps are real and need solutions while others may be perceived and can be dealt with quickly. Assets Market Study Needs Analysis

13. Strategic Plan Training • With the information gathered from your market studies and needs / gaps analysis you can now put together a plan to attract your defined target investors. • What are the identified “gaps” how will you fill them? • What is your “value proposition”? • How will you get your message out to the investors? • What strategic alliances are needed gov’t, regional / business? • What funding can be accessed? • What community resources need to be mobilized? • Next steps (Familiarization tours / Trade shows / Cold calls / Development of key networks.) Assets Market Study Needs Analysis Plan Compete

14. Compete Training • Develop a marketing plan. • Prepare informational packages and business cases. • Consolidate marketing efforts locally and regionally. • Participate in trade shows and investment marketing activities. • Consider trade and investment marketing partnerships. • Market your community on the Web. • Reach out to potential leads. • Develop familiarization tours for investors. • Respond to inquiries from site locators promptly. • Use the Ontario Investment Services site. Assets Market Study Needs Analysis Plan Compete

15. Northern Communities Investment Readiness Program • Supports community and regional initiatives. • Simple streamlined application process. • Financial support under the NCIR is provided for: • Up to 75% of eligible project costs. • Up to $10 K per eligible applicant. • Based on the scope and nature of the project. • Applicants must contribute min. 10% equity. • Applicants may reapply for funding to support additional incremental • steps towards investment readiness. • Multi partner applications can combine funding. • Additional funding available for projects of regional significance.

16. Eligibility • Eligible applicants include: • Municipalities • First Nations • Economic Development Corporations • Partnerships of the above

17. Final Thoughts • Dealing with Consultants • RFP good method of determining costs in advance of application • Disclosure: Awarding of any contracts is conditional on application approval • Terms of reference: Supply consultants with your terms of reference up front. Essentially at the end of the day what is it you are expecting to receive that would trigger payment • Take advantage of the resources that exist in your community or region to develop applications. Specifically your MNDM regional officer. • Community Profile Site • http://www.sse.gov.on.ca/medt/investinontario/en/Pages/communities.aspx

18. Contact Information • Guy Pelletier • Northern Development Officer • Wawa • Tel: 705-856-4743 • guy.pelletier@ontario.ca Regional Economic Development Branch Ministry of Northern Development and Mines • Serge Alary • Northern Development Officer • Hearst • Tel: 705-372-2210 • serge.alary@ontario.ca • Joel Lafrance • Northern Development Officer • Chapleau • Tel: 705-864-1519 • joel.lafrance@ontario.ca