Regional Municipality of Halton: Economic Development Strategy Discussion Paper #5
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1 Regional Municipality of Halton: Economic Development Strategy Discussion Paper #5 Business Growth: Quality of Place and its Influence on Economic Development
2 PREFACE This series of Discussion Papers was produced for the Regional Municipality of Halton (Region) in order to solicit input from key stakeholders, the business community and residents on the strategic directions for economic development within the region over the next decade. This feedback will assist the Region in creating a common vision to further stimulate business growth and development in Halton through coordinated and enhanced economic development servicing and programs. Recognizing that economic development is primarily realized through the growth and intensification of the business community, each Discussion Paper will focus on what has been identified as a key driver of business growth and development within Halton. The Discussion Papers will present the issue, describe the current landscape and offer commentary on challenges, options and available courses of action to address each issue. A series of questions are then asked of the reader to solicit valuable input into the strategic planning process. Discussion Paper # 1 Business Growth: Economic Development and Employment Lands Discussion Paper # 2 Business Growth: Existing and Emerging Economic Sectors Discussion Paper # 3 Business Growth: Investment Attraction and Retention Discussion Paper # 4 Business Growth: Entrepreneurship and Innovation Discussion Paper # 5 Business Growth: Quality of Place and its Influence on Economic Development Discussion Paper feedback will be considered by Halton Region and incorporated into the collective vision and guiding principles of the Region s Economic Development Strategy. These Discussion Papers are designed to generate discussion around future directions in economic development at the Regional level. 2
3 Issue Quality of place is increasingly being recognized as an important factor in the economic performance of metropolitan regions. How can Halton help to improve its situation? North America s economy is changing. Traditional areas of the economy are being replaced with new activities that value proximity to intellectual capital rather than proximity to natural resources. Quality of place is increasingly being recognized as an important factor in the economic performance of metropolitan regions. The perception of a region as liveable, diverse and inclusive is a vital component of a region s ability to attract and retain talented individuals from a wide range of demographic groups. This discussion takes on greater relevance in the race to attract the best and brightest from around the world, in order to drive the development of more knowledge-based sectors of the economy. Aging workforces paired with declining birth rates and the decades-long trend of a shift away from a goods producing economy in Canada are adding an element of urgency to this discussion. There is a diverse range of components that contribute to quality of place. It can be influenced by natural heritage features (lakes, rivers, open spaces), cultural amenities (historic buildings, festivals, events, libraries, religious centres, entertainment), efficient transportation networks, diverse housing opportunities, accessible healthcare and education, and openness to newcomers. With reference to quality of place, there appear to be three broad issues that will frame the discussion in Halton Region. 1. First, much of what constitutes and defines quality of place of an area does not typically fall under the jurisdiction of upper-tier municipalities. Many cultural and recreational amenities will be developed and operated by local municipalities. Natural heritage assets will often be governed by external agencies and provincial and federal levels of government. With limited potential to control or develop actual assets that influence quality of place, what part does Halton Region have in assisting with the development of Halton as a unique and high-quality place to live, work, and play? 2. Quality of place assets are quite similar across large contiguous and connected areas. Most regions in Ontario have a self-professed high quality of place. To an external resident or business, the compelling differences between adjacent municipalities within large urban areas may not be easily identifiable. The key to correctly leveraging quality of place as a driver of economic development is effectively defining a unique quality of place that separates the area from areas closely connected to it. If quality of place is comparable across the Greater Toronto Hamilton Area (GTAH), why would a skilled individual choose to live in Halton? More importantly, what types of skilled individuals will be attracted to that unique quality of place once Halton defines it? 3
4 3. The issues in the more urbanized southern part of Halton may be different from those in the less urban and more rural northern part of the region. While the QEW corridor and North Oakville still have room for nonresidential development, south Halton is decidedly more mature. The 401 corridor is relatively undeveloped and areas further to the west and north are more constrained in terms of non-residential development by the Greenbelt. Current State in Halton Population growth continues to surge in Halton. There is something already appealing about Halton s quality of place. By all objective standards, Halton residents enjoy an enviable quality of life. The region s significant natural heritage features include the Niagara Escarpment and the Lake Ontario waterfront, which offer both residents and visitors alike with four-season recreational opportunities. Halton also offers a welcoming blend of charming downtown streetscapes, rural landscapes and a growing inventory of cultural heritage assets. From a talent attraction perspective, Halton possesses quality secondary school and post-secondary institutions such as Sheridan College, McMaster University s DeGroote School of Business and Charles Sturt University, as well as a growing business community which are essential building blocks for a complete community. Further, located at the centre of the Greater Golden Horseshoe area, Halton residents and businesses benefit from the region s proximity to downtown Toronto, Pearson International Airport and excellent highway and rail infrastructure which link Halton to the U.S. borders. Finally, Halton residents enjoy a safe community, with Halton being recognized as one of the safest regional municipalities in Canada and the safest place to live in the GTA for the past three years. Like much of the rest of the GTAH, the quality of place across the larger region has had a strong effect on the demographics of Halton. From 2001 to 2006, the Region s population grew by 17.1%, making it one of the fastest growing upper-tier municipalities in Ontario (behind only York (22.4%) and Peel (17.2%)). In part, much of this growth is due to the rapid expansion of Milton, which grew by 71% from 2001 to 2006 with the advent of lakebased servicing by the Region. Halton Region s approved Best Planning Estimates state Halton s 2006 population of 439,256 will grow to 503,600 by the end of 2011 (+14-15%). The following demographic characteristics will assist with assessing what the current state of Halton Region is with regards to quality of place: In 2006, Halton was a comparatively young region, with 52.6% of the population under the age of 40, and 26.7% under 20. In Ontario, those numbers were 51.5% and 25.0% respectively. While the region is home to a large number of young families, its proportion of residents aged is the lowest of the GTAH communities. In Halton, 17.8% of the population fall within this age group, which is less than all upper- or single-tier municipalities in the GTAH. 4
5 Between the last two census years, Halton exceeded many other areas of Ontario in population growth, population engaged in the knowledge economy and immigrant population. Halton residents are highly educated: Of the working age population in 2006 (25 to 64 years), 62.5% had obtained a college or university certificate, diploma, or degree, compared to 52.7% throughout all of Ontario. More specifically, 38.3% of Halton s residents aged 25 to 64 had a university-level certificate, diploma or degree, compared to 30.7% at the provincial level. People in knowledge economy occupations, including scientists and technologists, artists and entertainers, managers and analysts, accounted for 45.3% of Halton s labour force in From 2001 to 2006, the number of residents that held knowledge economy occupations grew by 18.9%, well above the growth across the GTA (9.9%) and Ontario (8.6%). The GTAH is also a magnet for new Canadians, and the proportion and growth of these newcomers can often hint at the quality of place of a region. In 2006, immigrants made up 24.8% of the total population of Halton Region, below the proportions in other GTAH communities (Toronto at 50.0%, Peel at 48.6%, and York at 42.9%) and Ontario as a whole (28.3%). From 2001 to 2006 though, the immigrant population in Halton Region increased by 29.6%, above Ontario (12.2%), and behind only York (34.1%) and Peel (32.1%) in the GTAH. If a high quality of place goes hand in hand with the attraction of a diverse range of talented people, it would follow that Halton has the quality of place amenities that are in demand. Halton has a number of identifiable assets such as natural heritage features, entertainment and cultural heritage venues, transportation connectivity, and housing diversity. As well, these assets seem to vary along a North-South divide through the region, adding to the diversity of quality of place across the region. Challenges to Business Growth Halton s economic development actions may have difficulty affecting location decisions of knowledge-based companies if they need young employees who want cultural and recreational options generally available only in downtown Toronto. New theories in economic development suggest that if a place is vibrant and diverse, it will attract a concentration of highly skilled individuals, who in turn have the ability to generate new employment and wealth through entrepreneurial ventures or the attraction of businesses that can utilize their talents. It is clear that Halton Region is 5
6 attracting new residents and a significant number of those individuals are highly educated and engaged in highlyskilled occupations. Even with small business support programs though, not all of these individuals will be creating their own jobs or starting businesses. Though an increasingly important requirement of site location is skilled labour in the knowledge economy, it is not the only requirement. Halton Region needs to undertake a successful campaign to support investment from businesses that are looking to tap into the intellectual capital available in the region. Unless these supports emerge, Halton runs the risk of becoming a bedroom community for areas that are better able to attract these knowledge-based businesses. While data from the Transportation Tomorrow Survey shows that 935,400 trips are made per weekday to Halton by outside residents 1, the 2006 Census identified a net daily labour export 2 of 42,120 people. The largest exports are accounted for in finance/insurance, professional/scientific/technical services, construction and transportation/warehousing 3. The first two sectors represent primary components of a community s knowledgebased workforce. With the proximity to other major centres and the ease of moving to the east and west from Halton, businesses throughout the Greater Golden Horseshoe are able to draw on Halton s labour force. Supporting new and knowledge-based investment in Halton includes ensuring that vacant facilities and buildings, infills, brownfield developments and greenfield lands have the necessary infrastructure to accommodate investment in a timely manner. Since quality of place and resident workforce are so similar across the western GTA and Hamilton, most businesses would have very little difficulty setting up in an adjacent municipality if those supports are not found in Halton, while still accessing Halton s labour pool. While it also assists with perceptions, Halton Region battles with quality of place issues as a result of location in the GTAH. Because it is so close to Toronto, the Region s quality of place is constantly contrasted with Toronto s. As well, it shares many of the assets that the rest of the GTAH can claim, thus blurring Halton s distinct identity. A perception exists that Halton is not capturing the number of young people that it could be and findings presented earlier suggest this is the case. These are individuals at or near the end of post-secondary education or in the early stages of their careers. Areas like Toronto, Peel and Hamilton have higher proportions of these individuals. Many have speculated that Halton is unable to compete for these individuals until later in life; that the youngest workers favour areas like Toronto and even Hamilton which offer a wider range of career options, industry networking, entertainment and housing options. In some cases, other areas of the GTAH may be able to claim a distinct quality of place than Halton Region, with better housing affordability, better connections to transit, or more cultural heritage and entertainment assets. For example, the Niagara Escarpment is not specific to Halton Region, nor is a performing arts centre. The challenge for Halton will be identifying the quality of place assets present across the region and in the local municipalities that truly separate it from other communities in the western GTAH. The next challenge will be assembling that into a compelling vision that actually differentiates the area from all others Transportation Tomorrow Survey: Regional Municipality of Halton, Summary by Wards (2006). datamanagementgroup, Department of Civil Engineering, University of Toronto. 2 Net labour import or export represents local labour force by industry vs. number of local jobs by industry 3 Statistics Canada, REDDI. (2006). Labour Flow Analysis. 6
7 In a regional context, some of the most prominent challenges to maintaining a high quality of place are continued support of knowledge-based businesses, mitigation of traffic congestion issues, provision of affordable housing that can appeal to a wide variety of demographic groups and perceptions of existing quality of place. Without addressing these challenges and where necessary, assisting the Halton local municipalities with these challenges, Halton risks not fully leveraging its quality of place to attract new workers and knowledge-based business investment. Opportunities and Actions for Economic Development There is an opportunity to identify and capitalize on this appeal to attract business investment. It will take broad support from Regional and local municipal administrations to institute beneficial initiatives. Though difficult to influence specifically at the Regional level, other jurisdictions are placing quality of place enhancements among their economic development actions. A primary tool that many Regions are using is the Community Improvement Plan (CIP); either developing their own CIP policies in Official Plans or participating in the CIPs of local municipalities. The Regional Reurbanization Community Improvement Plan (RRCIP) implemented by the Regional Municipality of Waterloo in 2008 allows Regional Council to authorize the purchase of key properties along Waterloo Region s Central Transit Corridor (CTC) and prepare them to a point where they become more attractive to prospective developers. The CTC represents the potential routing of Region-wide rapid transit and the properties around it represent priorities for redevelopment. By enacting the RRCIP, Regional Council can take a leadership role in the development of the CTC according to the community s vision, as well as encourage private investment in transitsupportive redevelopment projects that may not otherwise occur. The CTC and regional rapid transit are key quality of place projects in Waterloo. Also in Waterloo Region, the Brownfields Financial Incentive Program was developed in 2006 to complement the existing programs and supports available in the lower tier municipalities. The Regional program includes grants for a Phase II Environmental Site Assessment and exemptions from Regional development charges. The program has supported housing developments such as the Seagram Lofts in Waterloo and the Kaufman Lofts in Kitchener. Both projects are examples of the enhancement of the area s cultural heritage features and bringing residential development to the urban core. The Smarter Niagara program administered by the Niagara Economic Development Corporation and the Regional Municipality of Niagara was conceived as a way for Niagara Region to interact and support the CIPs and policies of the local municipalities. Undertaken in 2008, the Niagara Public Art Program provided matching grants (up to $5,000) for businesses wishing to place public art in any of Niagara Region s community improvement areas. 7
8 The Halifax Regional Municipality (HRM) implemented the Heritage Incentives Program in Administered by the Department of Planning and Development Services, it offers grants of up to $10,000 for exterior conservation work on privately-owned registered heritage properties. In addition, the program supports grants that can be obtained from the Province of Nova Scotia for work in heritage conservation. The Municipality of Prince Edward County s Build a New Life ( campaign is making the connection between quality of place and attracting knowledge-based businesses. A key component of the campaign is the use of video, sound and written testimonials from individuals who have started 1-10 employee businesses in the County. Not only is this a visually stunning website but it has a very compelling business-savvy approach. These are just a few examples of the types of programs being implemented at the regional/upper-tier level to enhance quality of place. Most often, the work is focused on interacting and complementing programs and priorities at different levels of government. If Halton is to implement a similar set of programs, it will take more than just the economic development department s initiative. Complementing the priorities of the local municipalities is also a must because in many instances they are taking the lead in quality of place initiatives. Discussion Questions 1. Do you feel the issue presented here is important to a Halton Region Economic Development Strategy? (rank from 1 to 10, with 10 being highest) Explain. 2. Do you feel the Current State is correctly described? (rank from 1 to 10, with 10 being highest) Explain. 3. Do you feel the Challenges to Business Growth are correctly described? (rank from 1 to 10, with 10 being highest) Explain. 4. What is the most significant problem/issue affecting the liveability of Halton Region and its Local Municipalities? 5. What are the quality of place assets that differentiate Halton Region from the rest of the GTAH? 6. How can Halton Region support Local Municipal efforts to develop quality of place assets? 7. Does the Region have a compelling brand promise it can offer to high technology start up ventures? 8
9 For more information, contact Halton Region Dial 311 or Toll free HALTON ( ) TTY
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