Economic Review 2011

Economic Review 2011

Message from Halton Regional Chair Gary Carr Halton Region at a Glance Date of Incorporation: 1974 Land Area: 967.0 square kilometres Lake Ontario Shoreline Frontage: 25 kilometres Greenbelt Area: 42,330 square hectares Employment Land Supply (Vacant and Occupied)*: 5,610 net hectares (3,248 net hectares developed, 2,362 net hectares vacant) Population**: 493,045 (2011 estimate), 624,094 (2021 projection), 752,537 (2031 projection) Labour Force***: 302,321 (2011 estimate) Businesses****: 38,253 (2011), 37,164 (2010), 36,587 (2009 Employment**: 250,932 (2011 estimate), 327,683 (2021 projection), 390,000 (2031 projection) Average Family Income***: $122,700 (2011 estimate) Average Retail Sales per Household***: $31,900 (2011 estimate) Annual Budget (2011): Halton Region s 2011 gross operating budget was $719 million, of which $595.6 million was related to Regional Services ($430.6 million tax budget and $165 million rate budget) and $123.4 million was related to Police Services. The 2011 gross capital budget totalled $214.4 million. On behalf of Halton Regional Council, I am pleased to present Halton Region s 2011 Economic Review, a comprehensive overview of business investment in Halton Region. The Halton economy showed signs of growth throughout 2011. Halton s unemployment rate was 6.1 per cent, below the Toronto Census Metropolitan Area (CMA) unemployment rate of 8.3 percent and the Ontario rate of 7.6 per cent. The number of Halton residents receiving employment insurance benefits in 2011 dropped 25 per cent from 2010, returning to pre-2008 levels. Commercial and residential development activity was on the rise throughout the region. Overall, building permit construction values gained 4.4 per cent in 2011 from the previous year. Several large new projects in Oakville strengthened commercial development activity in 2011 including the new Siemens Canada headquarters, three new office buildings at the Joshua Creek Corporate Centre, and two new office buildings in Oakville s Great Lakes Business Park. There was also significant industrial construction activity, including renovations at Chudleigh s and Princess Auto Distribution (Milton), Ecosynthetix and UPS (Burlington), and Min-Chem and Ford of Canada (Oakville). Announced in 2011 was Target's 1.3 million sq. ft. distribution centre in Milton and the 360,000 sq. ft. first phase of the Premium Outlet retail centre in Halton Hills. Notable in 2011 was the launch of Halton s new Regional Innovation Centre, HalTech, which will support the growth and success of innovative business in the region. Additionally, on December 14, 2011, Regional Council approved a new 10 year Halton Region Economic Development Strategic Implementation Plan that will guide Halton Region Economic Development, in partnership with our local municipal partners in Burlington, Halton Hills, Milton and Oakville. The Strategic Implementation Plan builds on our vision for economic development, specifically, that by 2021, Halton will be a preferred location for innovative businesses and entrepreneurs who need highly skilled talent, quality infrastructure and a positive business environment in order to contribute to sustainable regional economic prosperity. The Plan positions us well to meet Halton Region s growth plan distribution of 140,000 new jobs established in Halton over the next 20 years, 55 per cent of which are to be created in the next 10 years. Halton Regional Council promotes healthy, sustainable development that benefits all Halton residents and business owners, while minimizing the tax impact on property taxpayers. Last fall, Halton Regional Council approved the Region's 2012 Budget and Business Plan, delivering a zero per cent tax rate increase for Regional programs and services. This is the third consecutive year the Region has not increased taxes for its services, while maintaining service levels in a growing community. I am very proud that 98 per cent of Halton residents say they are satisfied with services provided to them by the Region. I invite you to read on and learn more about Halton Region s economy and why Halton is such a great place to live, work, raise a family, and retire. If you have any questions or comments, feel free to contact us by dialing 311, or by emailing me at gary.carr@halton.ca. Gary Carr Regional Chair * Watson & Associates, Investment Readiness and Competitiveness Study, January 2012 ** Halton Region, Best Planning Estimates, 2011 *** Financial Post Markets, Canadian Demographics, 2011 **** Statistics Canada, Canadian Business Patterns, 2009 2011

New Investment Highlights Halton Region: A location of choice for business The Halton economy showed signs of growth throughout 2011. Development activity across parts of Halton picked up during 2011, following the recovery from the 2009 economic downturn that began in 2010. Overall, Halton s total value of new construction and expansions rose 4% between 2010 and 2011, to just over $1.4 billion. The most significant increase occurred in commercial building activity. Bolstering commercial development activity in 2011 were several large new office projects in Oakville. Significant industrial construction activity mainly consisted of additions and renovations within existing facilities. Overall, there was a 4% increase over 2010 in building permits issued across Halton Region. Residential permits accounted for 61% of all building permits issued and 15% were Industrial, Commercial or Institutional (ICI) permits. City of Burlington Province Invests Millions in Eco-Company The Ministry of Research and Innovation has announced that it is investing $3 million in Burlington's EcoSynthetix Inc. EcoSynthetix is a bio-based polymer company providing environmentally friendly alternatives to petroleum based products in the paper industry. Currently, the industry standard for chemicallycoated marketing and packaging materials is petrochemical-based polymers. EcoSynthetix is changing the game with its EcoSphere biolatex binder, a starch-based feedstock which is carbon neutral and sustainable polymer. The provincial government is investing in EcoSynthetix through the Innovation Demonstration Fund (IDF). The funds will go to the creation of a Global Innovation and Technology Centre in Burlington which will house a biolatex pilot plant. This is where the eco-friendly chemical will be developed and commercialized. "The IDF was a major component in the decision to consolidate our headquarters and research and development offices from Michigan to Burlington. Government funding has been a major catalyst to making significant growth," said EcoSynthetix CEO, John van Leeuwen. The company has already grown from just five employees to 20, and has seen more than 650 per cent revenue growth. "We expect to hire about 20 more employees as a direct result of the pilot plant," said EcoSynthetix CFO Robert Haire. (Source: Ministry of Economic Development and Innovation, April, 2011) Joseph Brant Memorial Hospital Expanding The Ontario government announced approval of a $312 million investment for the expansion of Burlington s Joseph Brant Memorial Hospital. Construction is expected to start in the fall of 2012 for a new 500-car parking structure. Construction for a new six-storey tower that will house many new medical services is expected to start in 2014 or 2015. The hospital presently has 268 beds and that will rise to 350 after the expansion. The new hospital will also see 10 new operating rooms, a new intensive care unit, 76 new in-patient beds and an enlarged and improved cancer unit. The hospital first unveiled its $312-million plan in October, 2009. City Council has pledged $60 million and Burlington Mayor Rick Goldring said the City already had about $5 million in a reserve fund. Another $60 million will be raised by the hospital foundation through donors and a community fundraising campaign. (Source: Hamilton Spectator, August 11, 2011) Clean Energy Investment Creating Jobs in Burlington Anaergia Inc. is making Burlington home to its global headquarters and creating over 200 jobs. The Ministry of Economic Development and Innovation announced that it is assisting Anaergia Inc. establish its new global centre, manufacturing and assembly facilities. The company will lead water and energy research to develop and produce technologies that convert organic waste and wastewater into clean energy. The provincial government is providing over $16 million towards the more than $70 million project. Anaergia Inc. uses cutting-edge technology to produce biogas and natural gas energy from wastewater and organic waste. The Anaergia group of companies, that includes the UTS Biogas companies, has offices in Europe and the United States and its technologies have been used in about 1,600 plants worldwide. (Source: Ministry of Economic Development and Innovation, May 16, 2011) Town of Halton Hills Premium Outlet Mall Coming to Halton Hills Calloway REIT in partnership with Simon Properties has received building permit approval to begin construction of its 400,000 sq.ft. Premium Outlet Centre. The retail mall will be completed in 2013 and is expected to attract over 2.5 million visitors a year. Total investment in this development will be approximately $200 million and will create over 500 full and part-time jobs, in addition to site construction jobs. The outlet mall will be located at the intersection of Highway 401 and Trafalgar Road in Halton Hills. Applications Submitted for Industrial Building in Gateway Business Park First Gulf Corporation has submitted a site plan application to construct a 295,000 sq.ft. speculative industrial building on a 20-acre site in the 401-407 Gateway Business Park in Halton Hills. First Gulf has been successful in the community constructing over a half a million square feet of mixed use industrial buildings. Town of Milton Target Distribution Centre Coming to Milton Target announced it will open a massive distribution centre in Milton. A 79-acre site on Boston Church Road, just north of Highway 401, west of Esquesing Line, will house the 1.3 million square-foot facility - the biggest in Milton. Milton Mayor Gord Krantz estimates the distribution centre will employ 300 to 400 people, and the Town's portion of the property taxes on the building will be upward of $400,000 a year. Target confirmed that the distribution centre will be operational prior to the opening of Target's first Canadian stores in early 2013. In May, it was announced 105 Targets will open in Canada in 2013. 4 5

New Investment Highlights Green Technology Business Centre Proposed Del Ridge Homes and GreenLife Energy have joined forces to bring Canada's most progressive office building in the field of sustainable technology to Milton. GreenLife Business Centre, located on 450 Bronte Street will demand approximately 22% of the normal amount of operational energy at about 137,500 kwh of energy per year. It will also produce approximately 328,000 kwh/year from a dynamic fully oriented 250,000 watt PV array. Through the use of their own well developed and evolving building system called EnerBuild 7000e, Del Ridge employ the latest technologies in conservation and energy monitoring. GreenLife Energy, a wholly owned sub company of Del Ridge, operates remote solar arrays as well as their own remote wind facilities producing any shortfalls on sites which require the seal of "net zero". This project, geared to professionals in the field of green technology, goes far beyond the target making it the only "net-positive" facility of its kind in Canada. Through allocation, the surplus energy of approximately 195,500 kwh/year will be assigned to residential projects which are harder to achieve the "net zero" status on their own site. (Source: Town of Milton Economic Development) Town of Oakville Siemens Canada Selects Oakville as Home of New Corporate Head Office Siemens Canada announced in August plans for a new corporate head office - a Gold LEED 110,000 square foot, five-storey facility with enough space for 800 employees. The new facility will be built by First Gulf Development Corporation and is located on the North Service Rd. just west of Ford Drive fronting the Queen Elizabeth Way. It is expected to be completed by late 2012. This Oakville location was chosen by Siemens on a number of defining factors, including a common centralized location, customer proximity, market requirements and commuter traffic exposure alongside the busy QEW. The company will also maintain a number of facilities in the surrounding area including, Mississauga, Burlington and Stoney Creek. "This building is an exciting step forward for Siemens and its employees in the region," says Roland Aurich, President and CEO, Siemens Canada. "The building will not only be a showcase for responsible building practices and Siemens technologies, and will also bring together hundreds of employees under one roof, allowing for increased internal collaboration. There is also enormous potential for increased synergies with our customers and opportunity for sustainable growth in this new home. We look forward to becoming part of the Oakville community." (Source: Siemens Canada, August, 2011) Province Invests in Goodrich In December, the Province of Ontario announced it will be investing $3.3 million in local aircraft landing gear manufacturer Goodrich over the next five years. The investment, announced at Goodrich s Oakville headquarters, will assist the company s research and development department. The provincial partnership will also create 31 new jobs at Goodrich and protect another 37 existing jobs there. Partnering with business and supporting the aerospace sector are key components of the Province s plan to create and support new and existing jobs and strengthen the local economy. The Province s investment will support a more than $90 million investment Goodrich is making over the next five years into research and development. The company will be striving to develop and manufacture more advanced and reliable landing gear systems; reduce environmental impacts with lighter, fuel-saving landing gear systems made with advanced materials; and secure new supply contracts for three aircraft. (Source: InsideHalton, December 15, 2011) Development of Great Lakes Business Park Phase II Underway Approvals have been granted for the development of Phase II of the Great Lakes Business Park. Phase II will include two single-storey office buildings totalling over 91,000 square feet at 3450 and 3470 Superior Court. Great Lakes Business Park is located off of Burloak Drive, just south of the QEW in west Oakville. The development is part of Pauls Properties Corporation s Great Lakes Business Park project. Phase I was comprised of three buildings ranging from 35,000 square feet to 65,000 square feet, totalling 140,000 square feet of prestige office space. Canadian Tire Financial Services and Javelin Technologies have recently relocated their head offices to the Great Lakes Business Park. Phase I in total will house approximately 600-650 employees, and the Park may ultimately see up to 4,000 people employed in a broad array of businesses within its borders. New Oakville Hospital Groundbreaking In September, Halton Healthcare Services held a groundbreaking for the New Oakville Hospital, located at Third Line and Dundas Street. The new hospital will replace the Oakville-Trafalgar Memorial Hospital (OTMH), which has been in existence for over 60 years. The new state-of-theart hospital will be over three times the size of OTMH, and offer a full range of acute healthcare services. Construction of the New Oakville Hospital is expected to be completed in 2015. The hospital project is a significant economic opportunity for suppliers and contractors in Halton Region and the Greater Toronto Area. At the peak of construction, Hospital Infrastructure Partners (HIP) estimates more than 1,100 workers on site daily. HIP is the successful bidder who will design, build, finance and maintain the new hospital. The value of the contract with HIP is approximately $2 billion. Once completed, the New Oakville Hospital will be one of the largest community hospitals in Ontario Halton Region Halton Approves Financing for Front-End Employment Land Servicing In July 2011, Halton Regional Council approved financing to provide water and wastewater infrastructure to priority employment lands including Milton Business Park II, Oakville Winston Business Park West and the Halton Hills 401 Corridor, based on the principles outlined in the Council approved 2009 Financial Strategy to Provide Water and Wastewater Services to Employment Land in Halton report. The Region will front-end finance the water and wastewater infrastructure construction cost required to service priority employment lands through the issuance of debt. The cost of the annual debt charges will be fully recovered from development charges and will not impact existing taxpayers. Facilitating the provision of a serviced employment land supply is a policy of Halton Region, which is included in the Official Plan (ROPA 38) regarding Economic Development. In the Economic Development Strategy prepared for Halton Region with the assistance of consulting firms Watson & Associates and Millier Dickinson Blais, the report has emphasized the importance of serviced employment lands and the significant opportunity that Halton has to leverage its serviced employment land base to attract new non-residential investment and to support substantial economic growth over the next decade. Halton Region s infrastructure financing investments will allow the Region and its Local Municipalities to maintain a viable supply of investment ready employment lands throughout the next decade and more particularly to address an expected return to pre-recessionary demand levels. Importantly, these infrastructure investments will enable Halton to compete for non-residential investments from across the spectrum from higher density office opportunities to large scale distribution centres and landmark retail opportunities, all of which will contribute considerably to the Region s financial well being and Halton s economic future. 6 7

Market Overview Market Overview 8 9

Economic Activity Economic Activity Halton Economic Indicators Indicator 2009 2010 2011 2010/2011 % or pp change Total Population 1 471,375 482,206 493,045 2.2% Population Density (per sq km) 2 487 499 510 2.2% Labour Force 3 296,282 291,200 302,321 3.8% Unemployment Rate 4 6.5% 5.5% 6.1% 0.6pp Participation Rate 4 73.4% 76.1% 73.6% 2.5pp Employment Rate 4 68.7% 71.9% 69.2% 2.7pp Employment Insurance Beneficiaries 5 6,385 5,562 4,199 24.5% Number of Businesses 6 36,587 37,164 38,253 2.9% Employment 1 237,120 244,026 250,932 2.8% Business Bankruptcies 7 96 58 62 6.9% Total Construction Value 8 $1,144,766,635 $1,387,502,513 $1,449,190,052 4.4% Industrial $53,826,750 $86,210,220 $43,627,285 49.4% Commercial $141,352,206 $134,380,619 $232,625,967 73.1% Institutional $225,339,300 $354,040,429 $163,289,746 53.9% Residential $684,212,021 $756,846,325 $960,023,203 26.8% Industrial Vacancy Rate 9 6.1% 8.0% 5.6% 2.4pp Office Vacancy Rate 10 10.5% 11.4% 13.6% 2.2pp Average Household Income 3 $125,900 $122,400 $122,700 0.2% Occupied Dwelling Units 1 169,692 173,962 178,232 2.5% Housing Sales 11 4,467 4,636 5,330 15.0% Average Housing Price 11 $458,620 $517,857 $543,414 4.9% Average Days on the Market 11 57 40 31 22.5% Sources: 1 Halton Region Best Planning Estimates, June 2011 (forecasted) 2 Based on Halton s land area of 967 square kilometres 3 Financial Post Markets, Canadian Demographics 4 Statistics Canada, Labour Force Survey Estimates (custom tabulation, 3 month moving average, unadjusted) 5 Statistics Canada, Employment Insurance Statistics (Table 276-0006, average number of beneficiaries receiving regular benefits) 6 Statistics Canada, Canadian Business Patterns. As of June 7 Office of the Superintendent of Bankruptcy Canada 8 Local Municipal building departments and Halton Economic Development 9 CBRE. Based on rates in Burlington, Milton and Oakville 10 CBRE. Based on rates in Burlington and Oakville 11 Toronto Real Estate Board, Market Watch Unemployment Rate Trends in Halton, 2007-2011 Source: Statistics Canada, Labour Force Survey, Custom Tabulation, January 2012. Business Bankruptcy Trends in Halton, 2007-2011 The Halton economy showed signs of growth throughout 2011, albeit at a slower pace than the post-recessionary recovery witnessed in 2010. Overall, the rate of unemployment in Halton climbed 60 basis points from 2010 to reach 6.1% in 2011 and there were fewer residents participating in the labour force as participation rates dropped 2.5 percentage points to 73.6%. The number of Halton residents receiving regular employment insurance benefits in 2011 dropped 25% from 2010, returning to pre-recessionary 2008 levels. Commercial and residential development activity was on the rise throughout the region, while industrial and institutional construction decreased. Overall, building permit construction values gained 4.4% in 2011 from the previous year. Source: Office of the Superintendent of Bankruptcy Canada. 10 11

Economic Activity Economic Activity Employment Insurance Beneficiaries in Halton, 1999-2011* Greater Toronto Area Industrial Market Overview*, Q4 2011 Municipality Total Inventory Total Vacancy Rate Absorption (YTD) Avg. Net Rent Avg. Sale Price sq ft % sq ft $ / sq ft $ / sq ft Ajax 6,658,660 2.9 166,535 5.05 - Oshawa 9,068,505 1.7 170,917 5.50 8.52 Pickering 9,662,249 6.9 312,963 3.39 - Whitby 8,028,740 9.4 395,684 4.93 119.44 Toronto 26,112,171 0.1 184,000 8.75 64.73 Markham 31,887,576 4.3 267,456 5.76 88.90 Newmarket 5,314,721 1.9-20,033 5.04 45.48 Richmond Hill 14,126,315 4.0 232,019 5.96 - Vaughan 71,277,766 5.1 1,965,206 4.88 62.92 Caledon 11,637,898 5.1-18,815 4.55 - Brampton 82,865,333 6.2 985,955 5.03 58.97 Mississauga 158,333,196 5.0 3,323,183 4.80 68.05 Oakville 26,922,076 3.9 396,118 4.74 93.43 Burlington 18,827,397 5.0 790,200 4.32 101.91 Milton 12,274,521 7.4 364,476 4.96 68.44 * Includes only select municipalities in the Greater Toronto Area (figures for Halton Hills not available). Source: Colliers International, Greater Toronto Industrial Quarterly Update, Q4 2011 * Refers to average number of beneficiaries receiving regular benefits during the quarter. Source: Statistics Canada, Employment Insurance Statistics (Table 276-0006). The Greater Toronto Area (GTA) industrial market was relatively active throughout 2011, with the majority of markets seeing declines in their total industrial vacancy rate. Between Q4 2010 and Q4 2011, industrial vacancy rates dropped 4.2pp in Burlington, 3.0pp in Milton and 0.7pp in Oakville. This compares to an average decline in GTA industrial vacancy rates of 1.8pp. Meanwhile, total industrial inventories remained unchanged in most GTA markets, with the exception of Vaughan ( 563,000 sq.ft.), Oakville ( 215,000 sq.ft.), Richmond Hill ( 120,000 sq.ft.) and Mississauga ( 94,199 sq.ft.). The average net rent of industrial space across the GTA responded to decreased availability with an overall 5.5% jump in net industrial rents. In Halton, however, industrial rents dropped in Oakville ( 13.3%) and Milton ( 3.3%) and rose marginally in Burlington ( 1.6%). In total, 1,550,794 sq.ft. of industrial space was absorbed in Halton during 2011. In the office market, the southern Halton municipalities of Burlington ( 31,297 sq.ft.) and Oakville ( 7,094 sq.ft.) saw overall declines in office inventories from the last quarter of 2010 to 2011. Office vacancy rates rose 1.4pp in Burlington and dropped 1.6pp in Oakville, compared to an overall rate increase of 0.5pp in the wider GTA. The average net rent of office space gained 0.3% between 2010 and 2011 in Burlington and lost 1.8% in Oakville. Overall, 55,960 sq.ft. of office space was absorbed in the southern Halton office market in 2011. Greater Toronto Area Office Market Overview*, Q4 2011 Municipality Total Inventory Total Vacancy Rate Absorption (YTD) Avg. Net Rent Under Construction sq ft % sq ft $ / sq ft sq ft Pickering-Oshawa 1,747,559 9.3 120,598 14.05 - Markham (Town Centre) 3,484,034 11.2 88,538 13.01 - Scarborough (Town 3,931,335 13.1 143,662 13.15 - Centre) Vaughan 2,798,036 5.5 27,437 18.01 63,515 Richmond Hill 737,227 1.2-13,231 13.00 - Toronto (Downtown) 70,433,612 8.0 2,106,328 23.56 1,002,500 Toronto (Midtown) 18,118,725 7.3 819,215 16.49 - Brampton 2,506,139 8.9-47,913 14.77 - Airport Corporate 5,758,172 15.4 502,976 14.25 - Centre Mississauga (City 3,761,298 12.3-45,949 16.03 - Centre) Mississauga 7,110,539 15.4-57,611 15.41 416,012 (Meadowvale) Burlington 4,277,713 11.9-24,900 15.16 - Oakville 3,412,223 13.5 80,860 17.04 29,776 * Includes only select municipalities in the Greater Toronto Area (figures for Halton Hills and Milton not available). Source: Colliers International, Greater Toronto Office Quarterly Update, Q4 2011 12 13

Development Activity Development Activity Development activity across Halton picked up during 2011, following the recovery from the 2009 economic downturn that began in 2010. Burlington and Halton Hills witnessed a 25% and 37% rise in construction values, respectively, whereas Oakville grew by 6% and Milton saw an overall decline of 19% in construction values. Overall, Halton s total value of new construction and expansions rose 4% between 2010 and 2011, to just over $1.4 billion. The most significant increase occurred in commercial building activity (73% increase in construction value), followed by residential construction (27% increase in construction value). Industrial development activity dropped 49%, while institutional construction values fell 54%. Bolstering commercial development activity in 2011 were several large new projects in Oakville, including the new Siemens Canada headquarters ($16.2 million construction value), three new office buildings at the Construction Value ($ thousand) of New Developments, 2010-2011* Joshua Creek Corporate Centre ($14.5 million construction value, combined), and two new office buildings in Oakville s Great Lakes Business Park ($9.4 million, combined). Significant industrial construction activity mainly consisted of additions and renovations within existing facilities, including Chudleigh s and Princess Auto Distribution (Milton), Ecosynthetix and UPS (Burlington), and Min-Chem and Ford (Oakville). JM Tek in Oakville also began construction on a new industrial facility in 2011, valued at $2 million. Overall, there were 6,614 building permits issued across Halton Region in 2011, which represents a 4% increase over 2010 and 3% higher than levels reached in 2009. Residential permits accounted for 61% of all building permits issued and 15% were Industrial, Commercial or Institutional (ICI) permits. Type of Construction Burlington Oakville Milton Halton Hills Halton 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 Residential 196,499.8 250,587.4 292,704.1 344,930.7 232,195.1 298,153.7 35,447.3 66,351.5 756,846.3 960,023.2 Industrial 14,954.9 17,500.6 7,364.3 17,717.1 46,993.0 5,765.0 16,898.1 2,644.5 86,210.2 43,627.3 Commercial 56,585.4 84,582.8 45,912.6 128,754.9 24,651.3 12,482.0 7,231.4 6,806.2 134,380.6 232,626.0 Institutional 56,494.5 71,316.6 153,045.4 37,979.6 139,305.0 37,268.0 5,195.5 16,725.5 354,040.4 163,289.7 Other 35,389.1 27,369.6 3,512.0 3,603.2 11,623.4 14,697.6 5,500.4 3,953.5 56,024.9 49,623.9 Total Value 359,923.7 451,357.1 502,538.5 532,985.5 454,767.7 368,366.3 70,272.6 96,481.2 1,387,502.5 1,449,190.1 * Figures may not add due to rounding Source: Local Municipal building departments and Halton Economic Development Top Industrial and Commercial Developments, 2011* Area (sq Construction Name of Development Location Building Type ft) Value ($) Siemens Canada Oakville New Multi-Storey Office 114,800 $16,201,000 Bank of Montreal Burlington Office Renovation 5,000 $11,000,000 Joshua Creek Corporate Centre Oakville New Office Building 61,075 $7,376,000 Great Lakes Business Park Ph. II Oakville New Office Building 48,340 $4,941,000 Great Lakes Business Park Ph. II Oakville New Office Building 43,250 $4,421,000 Joshua Creek Corporate Centre Oakville New Office Building 31,365 $3,787,650 Joshua Creek Corporate Centre Oakville New Office Building 27,835 $3,361,300 ABS Machining Inc. Burlington New Industrial Facility 32,210 $2,812,000 Chudleigh's Milton Food Processing Warehouse Addition 18,890 $2,500,000 Ecosynthetix Adhesives Inc. Burlington Industrial Renovation 3,125 $2,403,000 Min-Chem Canada Inc. Oakville Industrial Addition 34,315 $2,000,000 JM Tek Ltd. Oakville New Industrial Building 18,515 $2,000,000 Princess Auto Ltd. Milton Industrial Warehouse Alteration 62,415 $1,700,000 Equity Corporation Oakville New Industrial Facility 47,950 $1,600,000 Ford Motor Company Canada Oakville Industrial Renovation 1,075 $1,470,000 CIBC Oakville Office Renovation 15,820 $1,420,000 UPS Supply Chain Solutions Burlington Industrial Renovation 660 $1,200,000 Access Storage Burlington Storage Facility 14,505 $1,145,000 * Listing of all non-residential, non-institutional and non-retail developments in excess of $1 million in construction value. Source: Local Municipal building departments. Gross Floor Area (square feet) of Non-Residential Developments, 2010 vs 2011* Industrial Commercial Institutional Total ICI Number of Building Permits Issued in Halton by Type of Development and Municipality, 2009-2011 Residential* Non-Residential** Miscellaneous*** Total 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 Burlington 378 593 386 371 387 413 575 597 581 1,324 1,577 1,380 Halton Hills 350 241 269 60 73 53 170 120 122 580 434 444 Milton 1,944 1,493 1,961 149 154 129 472 563 456 2,565 2,210 2,546 Oakville 869 1,203 1,415 353 281 369 708 629 460 1,930 2,113 2,244 HALTON REGION 3,541 3,530 4,031 933 895 964 1,925 1,909 1,619 6,399 6,334 6,614 2010 2011 2010 2011 2010 2011 2010 2011 Burlington 314,430 520,186 1,209,167 1,810,449 540,021 422,872 2,063,618 2,753,507 Halton Hills 357,355 126,925 152,157 83,206 44,782 93,240 554,294 303,371 Milton 762,084 178,809 293,541 246,130 587,784 256,072 1,643,409 681,011 Oakville 181,519 295,426 893,642 1,446,331 569,802 295,954 1,644,963 2,037,711 HALTON REGION 1,615,388 1,121,346 2,548,507 3,586,116 1,742,389 1,068,138 5,906,284 5,775,600 * Excludes site servicing, heating and plumbing. Both new construction, additions and internal alterations are included. Source: Local Municipal building departments and Halton Economic Development. * includes apartment registrations, renovations and additions ** includes industrial, commercial, institutional (ICI) *** excluding signs Source: Local Municipal building departments 14 15

Development Trends Development Trends Halton Region has experienced strong overall growth throughout the past 22 year period. Since 1989, the construction value of residential and non-residential development in Halton has grown 66%. While a significant proportion of the development activity has occurred in Oakville and Burlington throughout the 22 year period, the Town of Milton has seen the fastest growth in the Region during the last decade, with construction activity expanding 446% between 2000 and 2011. Milton s share of Halton s total development activity also rose dramatically over the past decade, accounting for 7% of Halton s total construction values in 2000 to 24% of total values in 2011. In terms of non-residential development activity, construction in the retail and commercial sector has seen the fastest growth in Halton with consistently high levels of growth since 1997. Industrial development, which is typically more sensitive to economic cycles, has fluctuated throughout the past 22 year period, reaching peaks in 1989-90, 2002-03 and 2007-08. During the recent 2009 downturn, industrial development in Halton dropped to its lowest levels since 1995 and commercial construction values had their steepest fall since the 2001 economic slowdown. As of 2011, industrial construction values were approximately 35% lower than its 22 year average, commercial values were 5% higher and institutional values were 56% higher than historical averages. Development Activity ($ thousand) in Halton by Type, 1989-2011 Total Construction Value ($ thousand) Trends across Halton, 1989-2011* * Includes industrial, commercial (office and retail), and institutional building types. Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2012 Halton Industrial, Commercial and Institutional (ICI) Construction Values ($ thousand), 1989-2011 * Including both residential and non-residential (industrial, commercial and institutional) building construction. Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2012. Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2012 16 17

Development Trends Competitive Position Growth in Industrial Construction Value ($ thousand) Across Halton, 1989-2011 Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2012 Growth in Commercial Construction Value ($ thousand) Across Halton, 1989-2011 Construction values were generally higher across the Greater Golden Horseshoe Area (GGH) in 2011 than the post-recessionary 2010 period, indicating a continuing trend of recovery across the region. Peel Region, including the City of Mississauga, posted the highest gains in construction values, followed by solid growth in Durham Region. In comparison, Halton and York Regions and the City of Toronto municipalities, posted more moderate increases, in the 3-5% range. Overall, Halton Region accounted for 9% of total development activity in the Greater Toronto Area (GTA) in 2011, down slightly from 10% in 2010. In terms of development costs, Halton Region s Development Charges (DC) for industrial development in 2011 were among the highest in the GGH. Nonresidential DCs were also high in York Region municipalities, including Richmond Hill and Vaughan, and the Kitchener Waterloo area. Meanwhile, Durham Region and the City of Toronto reported among the lowest industrial rates. For commercial development, York Region was again at the top of the list with the highest DCs in 2011, followed by Durham Region. Areas to the west of the GTA and the City of Toronto offered among the lowest commercial DCs. York and Halton Region s were similarly high in residential DCs in 2011. Halton Region released a Development Charges background study in November 2011, proposing lower non-residential DCs for office and industrial development. An opposite picture emerged in a comparison of property tax rates across the GGH. 2011 tax rates for industrial, commercial and residential properties were the lowest in York, Peel and Halton Regions. Areas to the west of the GTA, including the Cities of Hamilton, Brantford and Guelph, as well as Durham Region reported among the highest property taxes in 2011. Following the 39% jump in Halton s non-residential assessment in 2009 resulting mainly from Municipal Property Assessment Corporation (MPAC) reassessment (for the municipal tax year starting in 2009, all Ontario properties were reassessed by the MPAC based on market value at January 1, 2008), growth moderated in 2010 with a 2.4% rise in non-residential assessment values (data is not yet available for 2011). The share of non-residential assessment in Halton Region, however, remained virtually unchanged between 2009 and 2010 at approximately 16%. Within Halton, Milton and Burlington had the highest share of non-residential assessment in 2010 at 18.1% each, followed by Oakville with 14.4% and Halton Hills with 10.7%. The next MPAC assessment update will take place in 2012 for taxation years 2013-2016. Source: Statistics Canada, Building Permits Survey (Publication 64-001-XWF), February 2012 Comparison of Building Permit Activity in Select Municipalities in Greater Golden Horseshoe, 2010 versus 2011 Location 2010 2011 Percentage Change Residential ICI Total Residential ICI Total Residential ICI Total Halton Region $756,846,325 $574,631,268 $1,387,502,513 $960,023,203 $439,542,998 $1,449,190,052 26.8% -23.5% 4.4% Burlington $196,499,796 $128,034,725 $359,923,651 $250,587,363 $173,400,076 $451,357,069 27.5% 35.4% 25.4% Halton Hills $35,447,300 $29,324,940 $70,272,645 $66,351,494 $26,176,240 $96,481,207 87.2% -10.7% 37.3% Milton $232,195,118 $210,949,280 $454,767,749 $298,153,652 $55,515,000 $368,366,250 28.4% -73.7% -19.0% Oakville $292,704,111 $206,322,323 $502,538,468 $344,930,694 $184,451,682 $532,985,526 17.8% -10.6% 6.1% Peel Region $1,345,900,000 $710,900,000 $2,056,700,000 $1,862,400,000 $781,200,000 $2,643,600,000 38.4% 9.9% 28.5% Mississauga $190,604,000 $256,194,000 $451,806,000 $383,746,000 $405,845,000 $806,127,000 101.3% 58.4% 78.4% York Region $1,880,300,000 $1,019,900,000 $2,900,200,000 $2,082,600,000 $907,800,000 $2,990,400,000 10.8% -11.0% 3.1% Durham Region $828,900,000 $499,700,000 $1,328,600,000 $1,021,900,000 $462,600,000 $1,484,500,000 23.3% -7.4% 11.7% City of Toronto $3,494,000,000 $3,099,900,000 $6,593,900,000 $3,241,500,000 $3,667,800,000 $6,909,300,000-7.2% 18.3% 4.8% City of Hamilton $590,896,451 $491,618,823 $1,096,299,091 $432,286,604 $285,671,573 $731,019,287-26.8% -41.9% -33.3% Waterloo Region $758,924,000 $670,124,000 $1,429,048,000 $700,877,000 $575,164,000 $1,276,041,000-7.6% -14.2% -10.7% City of Brantford $50,463,000 $116,852,000 $167,315,000 $42,842,000 $47,952,000 $90,794,000-15.1% -59.0% -45.7% Note: Total many not add to 100% since the miscellaneous category has been omitted. Source: Statistics Canada's Building Permits Survey, Municipal building departments and Halton Region Economic Development division. 18 19

Competitive Position Competitive Position Comparison of Total Development Charges (Upper- and Lower-Tier) Across the Greater Golden Horseshoe, 2011* Region Municipality Residential (single Non-Residential Non-Residential detached per unit) (commercial per sq ft) (industrial per sq ft) City of Toronto $14,569 $10.61 $0.58 Peel Mississauga $35,265 $14.95 $11.28 Brampton $43,129 $13.21 $10.68 Caledon $37,967 $13.30 $10.77 Durham Oshawa $29,109 $21.41 $4.75 Whitby $32,893 $18.50 $4.75 Pickering $31,918 $22.41 $8.66 Ajax $33,874 $21.90 $8.15 York Vaughan $46,242 $29.09 $16.40 Markham $52,892 $28.11 $15.35 Richmond Hill $45,433 $30.99 $20.61 Newmarket $47,339 $28.90 $16.21 Aurora $48,798 $29.56 $16.87 Halton Burlington $36,371 $20.86 $16.29 Oakville $47,249 $19.52 $19.52 Milton $45,143 $22.22 $19.92 Halton Hills $42,418 $18.93 $15.35 Outside GTA Hamilton $27,752 $19.18 $7.02 Brantford $14,661 $5.00 $5.00 Guelph $25,615 $11.72 $5.79 Cambridge $25,311 $11.90 $11.90 Waterloo $27,730 $15.04 $15.04 Kitchener $23,149 $14.27 $14.27 Barrie $28,377 $16.53 $10.70 Comparison of Total Property Tax Rates (Municipal and Education) Across the Greater Golden Horseshoe, 2011* Region Municipality Residential Commercial Industrial (Retail and Office) (Residual) Industrial (Large) City of Toronto 0.79% 3.24% 3.39% 3.39% Peel Mississauga 0.96% 2.28% 2.65% 2.65% Brampton 1.18% 2.49% 2.90% 2.90% Caledon 0.96% 2.20% 2.57% 2.57% Durham Oshawa 1.66% 3.29% 4.98% 4.98% Whitby 1.38% 2.89% 4.35% 4.35% Pickering 1.36% 2.85% 4.29% 4.29% Ajax 1.36% 2.86% 4.31% 4.31% York Vaughan 0.95% 2.03% 2.33% 2.33% Markham 0.93% 2.01% 2.31% 2.31% Richmond Hill 0.96% 2.03% 2.34% 2.34% Newmarket 1.10% 2.20% 2.53% 2.53% Aurora 1.05% 2.14% 2.47% 2.47% Halton Burlington 1.00% 2.19% 3.47% 3.47% Oakville 0.96% 2.14% 3.38% 3.38% Milton 0.85% 1.98% 3.13% 3.13% Halton Hills 0.98% 2.17% 3.42% 3.42% Outside GTA Hamilton 1.48% 3.92% 5.56% 6.27% Brantford 1.44% 3.96% 5.10% 5.10% Guelph 1.28% 3.47% 4.68% 4.68% Cambridge 1.32% 3.78% 4.05% 4.05% Waterloo 1.27% 3.70% 3.96% 3.96% Kitchener 1.29% 3.72% 3.99% 3.99% Barrie 1.32% 2.85% 3.10% 3.10% * Multi-residential and commercial (residual) have been excluded. Source: BMA Management Consulting Inc., Municipal Study 2011 * Multiple dwelling and apartments have been excluded Source: BMA Management Consulting Inc., Municipal Study 2011 20 21

Competitive Position Comparison of Building Permit Fees Across the Greater Golden Horseshoe, 2011 Region Municipality Residential (per m2) Retail (per m2 finished) Industrial (per m2 finished) City of Toronto $45.77 +$15.08 $16.87 $13.82 < 7,500m 2, $12.21 > 7,500m 2 Peel Mississauga $11.05 $10.75 $7.80 < 2,000m2 Brampton $10.50 $14.50 $9.50 Caledon $10.20 $10.30 $5.35 > 465m 2 Durham Oshawa $10.60 $12.25 $10.27 Whitby $8.50 $10.01 $8.18 Pickering $10.00 $8.25 $6.20 Ajax $9.00 $11.00 $6.60 York Vaughan $9.75 $9.25 $7.65 Markham $11.80 $11.08 $9.06 Richmond Hill $9.50 $10.00 $8.10 Newmarket $14.50 $8.88 $8.66 Aurora $11.00 $5.50 $5.50 Halton Burlington up to 300m 2 $9.80, then $12.63 $13.98 up to 4,650m 2 $7.66, then $5.24 Oakville $13.49 $18.76 $11.28 >15,000m 2 Milton $9.83 $9.00 $6.00 Halton Hills $14.50 $13.55 $8.62 Outside GTA Hamilton $12.84 $14.07 $9.86 < 4,650m 2 Brantford $9.91 $9.37 $7.00 Guelph $11.62 $12.91 $8.07 Cambridge $13.45 $15.06 $9.36 Waterloo $8.61 $10.22 $5.92 Kitchener $12.70 $14.63 $8.61 Barrie $10.75 $13.00 $8.25 Source: BMA Management Consulting Inc., Municipal Study 2011 Comparison of Taxable Property Assessment Across the Greater Golden Horseshoe, 2010 (Total $ Current Value Assessment at start of year) Halton Region Other GTA Municipalities Other GGH Municipalities Municipality by Year Non-Residential Assessment (total less residential) Competitive Position Residential Assessment Total Assessment Non-Residential % of Total Assessment Halton Region Total 2006* $8,611,693,399 $49,834,663,471 $58,446,356,870 14.73% Halton Region Total 2007* $8,911,820,257 $51,727,205,790 $60,639,026,047 14.70% Burlington 2008 $3,525,152,284 $17,395,411,638 $20,920,563,922 16.85% Halton Hills 2008 $636,149,260 $5,945,132,385 $6,581,281,645 9.67% Milton 2008 $1,354,638,648 $6,666,834,591 $8,021,473,239 16.89% Oakville 2008 $3,597,423,423 $23,099,035,908 $26,696,459,331 13.48% Halton Region Total 2008* $9,113,363,615 $53,096,794,607 $62,210,158,222 14.65% Burlington 2009* $4,806,992,640 $21,958,267,215 $26,765,259,855 17.96% Halton Hills 2009 $893,387,450 $7,493,501,499 $8,386,888,949 10.65% Milton 2009 $2,033,056,519 $8,849,144,289 $10,882,200,808 18.68% Oakville 2009 $4,954,738,547 $29,248,784,800 $34,203,523,347 14.49% Halton Region Total 2009* $12,688,175,156 $67,549,697,803 $80,237,872,959 15.81% Halton increase 08-09 $3,574,811,541 $14,452,903,196 $18,027,714,737 Halton % increase 08-09 39.23% 27.22% 28.98% Burlington 2010* $4,914,508,985 $22,283,555,893 $27,198,064,878 18.07% Halton Hills 2010 $895,903,450 $7,493,501,499 $8,389,404,949 10.68% Milton 2010 $2,130,742,219 $9,616,182,166 $11,746,924,385 18.14% Oakville 2010 $5,055,657,257 $30,094,903,150 $35,150,560,407 14.38% Halton Region Total 2010* 1 $12,996,811,911 $69,488,142,708 $82,484,954,619 15.76% Halton increase 09-10 1 $308,636,755 $1,938,444,905 $2,247,081,660 Halton % increase 09-10 1 2.43% 2.87% 2.80% City of Toronto 2010 1 $73,907,329,124 $294,740,597,201 $368,647,926,325 20.05% Mississauga 2010 1 $27,243,538,418 $77,124,002,838 $104,367,541,256 26.10% Brampton 2010 1 $10,945,598,798 $43,416,203,057 $54,361,801,855 20.13% Caledon 2010 1 $1,482,326,981 $9,361,374,514 $10,843,701,495 13.67% Peel Region Total 2010* 1 $35,015,159,649 $119,547,795,421 $154,562,955,070 22.65% Oshawa 2010 1 $3,261,069,528 $11,315,661,118 $14,576,730,646 22.37% Whitby 2010 1 $1,905,261,291 $11,747,575,038 $13,652,836,329 13.96% Pickering 2010 1 $1,868,372,742 $9,352,335,993 $11,220,708,735 16.65% Ajax 2010 1 $1,373,559,060 $9,820,090,060 $11,193,649,120 12.27% Durham Region Total 2010* 1 $8,612,061,403 $57,480,141,368 $66,092,202,771 13.03% Vaughan 2010 1 $13,413,141,730 $40,446,652,860 $53,859,794,590 24.90% Markham 2010 1 $7,676,086,510 $34,833,623,106 $42,509,709,616 18.06% Newmarket 2010 1 $1,843,945,680 $8,695,432,530 $10,539,378,210 17.50% Aurora 2010 1 $1,120,712,270 $7,045,014,690 $8,165,726,960 13.72% York Region Total 2010* 1 $30,539,613,845 $137,811,436,213 $168,351,050,058 18.14% Hamilton Total 2010 1 $6,545,603,496 $43,265,029,060 $49,810,632,556 13.14% Brantford 2010 1 $1,500,547,755 $6,420,320,885 $7,920,868,640 18.94% Guelph 2010 1 $2,037,991,499 $10,181,571,854 $12,219,563,353 16.68% Kitchener 2010 1 $2,604,800,075 $15,440,541,226 $18,045,341,301 14.43% Assessment Property Class: For consistency, only Full Current Value Assessment totals before adjustments figures are used. (Weighted and discounted figures, payments in lieu, adjustments and special levies are not included.) The total for Residential used is property classes: Residential, Multi-residential, Farmland and Managed Forests, consistent with FIR Schedule 26. The Total for Non-Residential used is property classes: Commercial (incl., office, parking and shopping centres) Industrial, Pipelines and Other. Current Value Assessment: The term used by the Municipal Property Assessment Corporation (MPAC) for Taxable Assessment and includes both reassessment of existing property to reflect new market valuations and the addition of new buildings and changes in land use. 1 : 2008 was a MPAC re assessment year for the entire province. The resultant increase in the Non-Residential % of Total Assessment is an observed result across many municipalities in Ontario in 2009. * Totals are as reported in the FIR for Halton Region and may not add from each municipality due to rounding errors. Halton and Peel Region totals include all municipalities listed. Durham and York totals include certain rural municipalities not listed. Burlington unweighted 2010 FIR total assessment was not available and figures shown are the Halton Region total less the other 3 Halton local municipalities Source of Assessment Figures: Ontario Government Ministry of Municipal Affairs, Financial Information Returns. (FIR). 22 23

Investment Readiness and Competitiveness Investment Readiness and Competitiveness Halton Region retained Watson & Associates Economists Ltd. and Millier Dickinson Blais Inc. in the winter of 2011 to prepare an Investment Readiness and Competitiveness Study to assess Halton s competitive position in the industrial and office market, identify target sectors, and examine Halton employment areas and costs of development. Study findings informed both the 2011 Halton Economic Development Strategic Plan process, as well as Halton s 2012 Development Charges (DC) Background Study work. As part of the study, a detailed pro forma analysis and assessment of the cost competitiveness of prototypical industrial and office development in Halton relative to other municipalities in the surrounding GTA and GGH market area was undertaken. Comparisons were made under the current Regional DC rates and under the proposed 2012 DC rates in both the region-wide and areaspecific (Greenfield and Built Boundary) DC structure options. The cost competitiveness assessment included prototypical employment office buildings of 75,000 and 150,000 sq. ft in size and industrial buildings of 75,000, 150,000, 300,000 and 750,000 sq. ft. in size. Results show that, for a typical 300,000 sq.ft. industrial facility in Halton, under the Region s 2011 non-residential DC rates, total average Halton non-residential DCs would comprise 16% of overall development costs. This nonresidential DC cost share is relatively high compared to most municipalities in the GTA and GGH area. Halton Region s proposed 2012 non-residential, non-retail DC rates which are generally lower than the comparable 2011 DC rates decrease the proportion of DCs as a share of overall development costs and help bring the Halton municipalities more in line with other GTA and GGH municipalities. Proportion of Total Development Cost by Component (300,000 sq.ft. Industrial Building) In terms of total annualized development costs (comprised of construction costs, land costs, DCs, developer profit and property taxes over a 25 year period), Burlington, Halton Hills and Milton are cost competitive for industrial development, with costs less than that of larger west GTA municipalities such as Mississauga and Brampton and the north GTA communities of Vaughan, Richmond Hill and Markham. Burlington, Halton Hills and Milton, however, are less cost competitive than Caledon, Newmarket and Aurora, the Durham Region municipalities and some of the Outer Ring GGH municipalities including Cambridge, Kitchener, Brantford and Barrie. Oakville is among the more expensive municipalities for industrial development within the GTA and GGH, along with Markham and Richmond Hill. Meanwhile, all four Halton municipalities were well below the survey average for total annualized cost of office development. Oakville and Burlington, in particular, are two of the strongest communities in the GTA and GGH in terms of financial feasibility for office development. Halton s competitiveness in terms of annualized cost of office development is largely attributable to competitive land prices and moderate office tax rates. Overall, the total cost of industrial development in the GTA and GGH municipalities has increased an average of 20% between 2007 and 2011. Increases were highest in Markham ( 40%), Richmond Hill ( 35%) and Waterloo ( 29%) and lowest in Halton Hills and Burlington ( 13%, each), Caledon and Brantford ( 14%, each). Developer Profit 5% Land 21% Total Cost of Development in Halton vs. Greater Golden Horseshoe, 2011 (300,000 sq. ft. Industrial Building) Source: Watson & Associates Economists Ltd., Investment Readiness and Competitiveness Study, 2012. Development Charges 16% Construction Costs 58% Source: Watson & Associates Economists Ltd., Investment Readiness and Competitiveness Study, 2012. 24 25

Investment Readiness and Competitiveness Industry Activity Total Development Cost per Square Foot, 2007 vs 2011 (75,000 sq. ft. Industrial Building) According to Statistics Canada, Halton was a location of choice for 38,253 enterprises in 2011, up 3% from 37,164 in 2010 and 5% from 36,587 in 2009. Large enterprises had the highest growth rate climbing 15% between 2010 and 2011. And, while the increase in large employers was decidedly low in absolute terms, it does represent a significant contribution to employment in Halton. Overall, nine out of ten Halton businesses in 2011 had fewer than 10 employees. Halton also has a diversified industrial composition, with 85% of businesses operating in the servicebased industries and 15% in goods-producing sectors. Professional services, the finance and real estate industry and the wholesale / retail sectors have the highest concentrations of business in Halton. Distribution of Businesses in Halton, 2011 Burlington 13,069 34% Oakville 15,836 41% Milton 5,284 14% Halton Hills 4,064 11% Total Number of Businesses in Halton: 38,253 Source: Statistics Canada, Canadian Business Patterns, June 2011 Halton Business Growth, by Size Category*, 1999-2011 Source: Watson & Associates Economists Ltd., Investment Readiness and Competitiveness Study, 2012 * Size categories are defined as: Micro-business (under 5 employees); Small business (5 to 99 employees); Medium-sized business (100 to 499 employees); and, Large business (over 500 employees). Note: Enterprises include only those companies that had a minimum of $30,000 in annual revenues, or are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years. Source: Statistics Canada, Canadian Business Patterns, December 2009 to 2010 and June 2011 26 27

Industry Activity Industry Activity Distribution of Businesses in Halton by Size Category, 2011 Distribution of Businesses by Sector in Halton, 2009 to 2011 Over 500 employees, 30, 0% 50 to 99 employees, 472, 1% 20 to 49 employees, 1,218, 3% 50 to 99 employees, 472, 1% 10 to 19 employees, 1,819, 5% No employees 22,156, 58% 5 to 9 employees, 3,013, 8% 1 to 4 employees, 9,213, 24% Source: Statistics Canada, Canadian Business Patterns, June 2011 Source: Watson & Associates Economists Ltd., Investment Readiness and Competitiveness Study, 2012. Halton's Top Private Sector Employers, 2011 (by Number of Employees) Name of Company Number of Employees* Municipality Ford Motor Company of Canada 3,192 Oakville Fearmans Pork Inc. 1,100 Burlington Cogeco Cable Systems Inc. 1,050 Burlington Goodrich Landing Gear Services 868 Oakville, Burington Karmax Heavy Stamping 800 Milton Dufferin Construction Company 770 Oakville Evertz Microsystems Ltd. 750 Burlington Manheim Auto Auctions Company 750 Milton TDL Group 730 Oakville AMEC America Ltd. 700 Oakville Gordon Food Service 585 Milton Mold Masters Ltd. 533 Halton Hills Sobey's Retail Support Centre 515 Milton * Refers to number of full-time equivalents. Source: Halton Region Economic Development Division Published: March 2012 28 29

Housing Activity Housing Activity The Greater Toronto Area (GTA) witnessed its secondbest year on record in the home resale market in 2011. Total sales amounted to 89,347 units (up 4% from 2010) and the average selling prices rose 8% to $465,412. According to the Toronto Real Estate Board, it was low borrowing costs that contributed to the active housing market and, if not for a shortage of listings, 2011 may have been a record-setting year across the GTA. The resale housing market in Halton Region also performed well during 2011. The Toronto Real Estate Board reported 5,330 housing sales during 2011, representing a 15% increase over last year. The increased sales activity translated into substantial competition among home buyers which exerted strong upward pressure on selling prices. In 2011, Halton s average housing price was approximately $543,000, up 5% from the previous year. Resale homes were also on the market for a shorter amount of time during 2011, averaging 31 days. Halton s new housing market cooled slightly in 2011. The Canada Mortgage and Housing Corporation reported 3,374 new single or multiple dwelling units begin construction in Halton in 2011, down 13% from the previous year. Overall, there were 2,898 dwelling units completed during the year, representing a 16% decline from 2010. By December 2011, there were nearly 3,500 dwelling units under construction, with a three month average absorption of 309 units. This compares to just over 3,000 units under construction the previous year and average three month absorption of 230 units. Housing Prices in Select Ontario Markets, Q4 2010 vs. Q4 2011 Market Detached Bungalow* Standard Condominium** Q4 2010 Q4 2011 % Change Q4 2010 Q4 2011 % Change Barrie $268,000 $267,000-0.4% $262,000 $245,000-6.5% North Bay $245,000 $240,000-2.0% $170,000 $167,000-1.8% London $237,800 $241,800 1.7% $141,900 $150,400 6.0% Hamilton (Mountain) $225,264 $227,750 1.1% n/a n/a n/a North Toronto $625,000 $680,000 8.8% $395,000 $412,000 4.3% Scarborough (Central) $365,000 $387,000 6.0% $240,000 $250,000 4.2% Newmarket $354,000 $395,000 11.6% $265,000 $265,000 0.0% Markham $500,000 $545,000 9.0% $300,000 $310,000 3.3% Mississauga (Meadowvale) $355,000 $430,000 21.1% $218,000 $225,000 3.2% Richmond Hill $595,000 $633,000 6.4% $300,000 $310,500 3.5% Burlington $330,000 $355,000 7.6% $242,500 $266,900 10.1% Oakville $378,000 $389,000 2.9% $278,250 $279,000 0.3% Housing Starts in Halton Region, 2009-2011 Municipality 2009 2010 2011 2010/2011 % Change Burlington 695 1,091 586 46.3% Halton Hills 171 122 104 14.8% Milton 1,746 1,616 1,867 15.5% Oakville 472 1,035 817 21.1% Halton Total 3,084 3,864 3,374 12.7% Note: Data is collected through the Starts and Completions Survey, which involves site visits of new self-contained single and multiple dwelling units. Housing starts are defined as the beginning of construction of a building, usually when the concrete foundation or footings have been poured. Source: Canada Mortgage and Housing Corporation, Housing Market Information, January 2012 Housing Completions in Halton Region, 2009-2011 Municipality 2009 2010 2011 2010/2011 % Change Burlington 806 1,093 869 20.5% Halton Hills 100 130 167 28.5% Milton 2,077 1,627 1,293 20.5% Oakville 822 583 569 2.4% Halton Total 3,805 3,433 2,898 15.6% * Refers to a three-bedroom single storey home with 1 1/2 bathrooms and a garage (house area 1,200 sq ft) ** Refers to a two-bedroom apartment in a high-rise building with an inside floor area of 900 sq ft Source: Royal LePage, Survey of Canadian House Prices, 2010 and 2011 Halton Housing Overview, December 2011 Under 3 mos. Average Municipality Total Supply Construction Absorption Burlington 1,178 669 145 Halton Hills 76 68 11 Milton 1,621 1,493 99 Oakville 1,660 1,252 54 Halton Total 4,535 3,482 309 Note: Data is collected through the Starts and Completions Survey and Market Absorption Survey, which involves site visits of new self-contained single and multiple dwelling units. Absorption occurs after a unit has been completed and either sold or rented. Source: Canada Mortgage and Housing Corporation, Housing Market Information, January 2012 Note: Data is collected through the Starts and Completions Survey, which involves site visits of new self-contained single and multiple dwelling units. Housing starts are defined as the beginning of construction of a building, usually when the concrete foundation or footings have been poured. Source: Canada Mortgage and Housing Corporation, Housing Market Information, January 2012 30 31

PLANNING FOR ECONOMIC GROWTH & PROSPERITY One of the fundamental principles of the new Economic Development Strategy is that the Halton Employment Forecast of new jobs to be created in Halton between 2012 and 2021 represents an important target for Halton Region and its Economic Development Division. Attaining this target will help the Region deliver balanced and fiscally prudent growth in conformity with the required phasing of growth as established in ROPA 38 and ROPA 39 and in conformity with the Growth Plan for the Greater Golden Horseshoe. For additional information or to obtain copies of the background research materials, Strategic Directions Report or the Strategic Implementation Plan, visit www.halton.ca/ecdevstrategy. Halton Region Economic Development Strategy, 2012-2021 On December 14, 2011 Regional Council approved a new 10 year Halton Region Economic Development Strategic Implementation Plan that will guide Halton Region Economic Development, in partnership with its local municipal partners in Burlington, Halton Hills, Milton and Oakville. The Strategic Implementation Plan builds on the vision for economic development approved by Halton Regional Council in Fall 2011 that: By 2021, Halton will be a preferred location for innovative businesses and entrepreneurs who need highly skilled talent, quality infrastructure and a positive business environment in order to contribute to sustainable regional economic prosperity. The Strategic Plan establishes direction for Halton Region s Economic Development services and programs and informs decision making for economic development within the Region. One of the key Citizens Priorities identified by Halton residents is to attract and retain jobs. To help achieve this goal, the Economic Development Strategic Implementation Plan sets out 23 directions with specific actions, targets and performance measures. In drafting the plan, Halton Region s Economic Development division worked with consulting firm Millier Dickinson Blais Inc. and Watson and Associates Economists Ltd. The consulting teams undertook background research on the Current State of the Halton Economy and Halton s Investment Readiness and Competitiveness, as well as creating Discussion Papers respecting the five key economic development pillars in Halton. Facilitated discussions were also held with staff from Halton Region and the Halton Local Municipalities of Burlington, Halton Hills, Milton and Oakville, and formal consultations were held involving elected officials and representatives from Halton s business community in north and south Halton. The result of these consultations and subsequent analysis was a Strategic Directions Report. The report provides a vision and a series of directions for Halton Region to focus on and supports Halton Region s 2011-2014 Action Plan. It provides directions in five key pillars supporting economic growth in the region, namely: Employment Lands ensure sufficient supply of employment lands in Halton to meet Halton s growth forecast and fiscal objectives and monitor land absorption Existing and Emerging Economic Sectors undertake information gathering, liaison and support local sector-based strategies Investment Attraction and Retention establish an investment attraction plan for office and exportoriented development, a Regional investment response team, an online data resource centre and ensure industrial tax rates and non-residential development charges are competitive Entrepreneurship and Innovation Establish a north Halton Small Business Centre, empower young entrepreneurs and develop entrepreneurship programs for Newcomers Quality of Place support priority areas, e.g., physician recruitment, tourism and agriculture As a 10 year plan, the Economic Development Strategic Implementation Plan is comprised of two five-year phases 2012-2016 and 2017-2021. This phasing supports Regional Official Plan Amendment (ROPA) No. 38 and ROPA No. 39 - "Regional Development Phasing to 2031" and "Best Planning Estimates of Population, Occupied Dwelling Units and Employment, 2011-2031" approved by Council on July 13, 2011. Among other matters, ROPA No. 39 provides the Employment Forecast of new jobs to be created in Halton in each Local Municipality under the Growth Plan by five year increments. Halton Employment Forecast, based on Approved ROPA 39, Regional Phasing, 2012-2021 Municipality Employment Forecast 2012-2016 (new jobs) Employment Forecast 2017-2021 (new jobs) Total Employment 2012-2021 (new jobs) Burlington 3,055 4,136 7,191 Halton Hills 787 2,192 2,979 Milton 18,102 18,552 36,654 Oakville 15,516 14,311 29,827 HALTON REGION 37,460 39,191 76,651 Avg. Annual New Jobs in Halton 7,492 7,838 7,651 Employment Lands Ensure sufficient supply of employment lands with water and wastewater servicing. Provide information on Regional services for site selection inquiries. Coordinate provision of information on employment land servicing from Regional divisions for Local Municipalities. Monitor industry sector composition and employment land absorption within employment areas. Existing & Emerging Sectors Undertake information gathering to support local sectorbased strategies and understand location determinants for new investors. Support agricultural liaison activities of the Region s Planning Services division. Support local sector-based strategies with a focus on higher-density employment uses. Investment Attraction & Retention Create an investment attraction action plan that supports local strategies and office and export-oriented investment. Develop investment attraction programming for investment influencers. Evaluate involvement in the GTMA. Establish Regional Investment Response team. Develop a Regional online Data Centre. Investigate non-residential development charge differentiation. Ensure Regional industrial tax competitiveness Entrepreneurship & Innovation Market services of Small Business Centre and HalTech, the regional innovation centre. Establish a north Halton Small Business Centre. Establish small business programming for new Canadians. Support funding initiates for young entrepreneurs. Explore establishing a business incubator/accelerator centre for high-growth and export-oriented sectors. Quality of Place Promote quality of life in Halton through provision of economic development information on Halton website. Promote live/work objectives through use of Halton website, quarterly and annual reporting and appropriate social media tools. Support Regional involvement in physician recruitment, tourism and agriculture. Collaborate with RTO-3 and DMOs in tourism marketing activities. 32 33

Strategic Partnerships to Support Business Physician Recruitment Halton Region s Physician Recruitment program has attracted and retained an impressive number of physicians. Since 2003, the program has helped bring 160 new family doctors to Halton. In addition, family physicians have also been recruited to cover long term vacancies, such as maternity leaves, and several other new family physicians have established part time practices in the region. Halton s Physician Recruitment program continues to assist local hospitals with their specialist recruitment, specifically Emergency Room physicians and Hospitalists; as well as other medical specialists. The following table provides information on the number of full-time permanent family physicians recruited by each municipality since the program began in 2003. Year Burlington Halton Hills Milton Oakville Yearly Total 2003 7 6 2 4 19 2004 6 4 0 6 16 2005 7 1 2 2 12 2006 6 2 2 3 13 2007 6 2 5 3 16 2008 6 3 4 3 16 2009 16 2 5 2 25 2010 7 0 3 10 20 2011 7 1 3 12 23 Total 68 21 26 45 160 Halton s Physician Recruitment program continues to support the Halton McMaster Family Health Centre family medicine teaching unit. The Halton McMaster site officially opened in May 2010 and currently has six first year family medicine residents who started in July 2011. In July 2012, six new family medicine residents will join the program. Training takes place throughout Halton and continues to expand. The Physician Recruitment program continues to provide on-going support, along with the Town of Halton Hills, to the Ministry of Health and Long Term Care (MOHLTC) funded Nurse Practitioner program at the Acton Medical Clinic. In 2011, Halton s Physician Recruitment program participated in Docs on Ice, a charitable hockey tournament which brings together over 800 physicians from all across Ontario to play hockey and raise funds for a community charity. The tournament was held in Oakville in April and successfully raised over $150,000 for the Halton and Hamilton Alzheimer s Society. As a result of the funds raised, the Halton and Hamilton Alzheimer s Society Oakville office was able to locate to a new location, pay for renovations and lease costs for three years, and build the Docs on Ice Dementia Resource Centre. Physician Appreciation Week During May 2 to 6, Physician Appreciation Week, Halton Region and hospitals recognized physicians for their tremendous contribution to the community. May 1 was also the first ever Doctors Day in Ontario. Now in its ninth year, Physician Appreciation Week was originally established in 2003 by the Halton Physician Recruitment program. To pay tribute to the dedication and support of Halton s physicians, local hospitals hosted morning coffee events during the week with the Mayors of their respective community. With support from corporate sponsors, Halton Region hosted a successful networking event on May 5. For more information on the physician recruitment program, visit www.haltondoctors.ca. Tourism Halton Collaborates With Its Partners to Promote Tourism Through the Halton Region Economic Development Division, Halton Tourism collaborated with several partners to support and promote Halton-wide tourism initiatives. Halton Region is a key partner to the tourism campaign underway by the Regional Tourism Organization #3 and the Western Corridor War of 1812 Alliance Committee. Work is currently underway to map significant 1812 routes in Halton, and identify opportunities to promote local 1812 commemorative events, in collaboration with heritage organizations such as the Halton Heritage Network, Halton Regional Museum, Royal Botanical Gardens and the Joseph Brant Museum. Halton Region is taking on a marketing/communications role to broaden the impact of the War of 1812 Bicentennial tourist attraction program, which will ensure that residents across the region are aware of these various tourism activities. Halton Tourism also collaborated with Conservation Halton on two successful online contests. Conservation Halton generously provided prize packages and support through promotion and endorsement. Region Launches Tourism Social Media Campaign Halton offers countless opportunities for entertainment, recreation, education, relaxation and fun. And just in time for summer vacation, Halton Region launched a tourism marketing campaign that features a number of new ways to spread the word about all there is to see and do in Halton. Social media platforms Facebook and Twitter were key components in the campaign. Halton s tourism market is growing, said Halton Regional Chair Gary Carr. Tourism can make a strong contribution to community building and quality of life in Halton, so it makes good sense to use all of the tools at our disposal, including social media, to promote Halton s tourism assets. Whether you are planning a staycation, looking for ways to keep out-of-town guests entertained, or just want to help promote our wonderful community, I invite you to discover Halton on Facebook and Twitter. Economic Development plans to use the new tools to promote upcoming events, tourism assets such as the Halton Regional Museum, interesting facts and useful travel tips and allow visitors to share their own Halton travel tips, stories, photos and videos. The campaign follows on the work started by the Halton Tourism Advisory Committee (2008-2011) which was instrumental in launching a number of tourism initiatives including the tourism portal called Discovering Halton on the Region s website at www. halton.ca/tourism. As part of an overall integrated marketing plan to complement its social media campaign, Economic Development Division also launched a new glossy Halton Tourism postcard to promote tourism assets in Halton. Find Halton Tourism on Facebook at www.facebook.com/haltontourism and join the conversation on Twitter @HaltonTourism. 34 35

Strategic Partnerships to Support Business Small Business and Royal Botanical Gardens Receives Federal and Provincial Funding The governments of Canada and Ontario announced that they will work together to further develop and improve the Royal Botanical Gardens (RBG), the country s largest botanical garden and significant nature sanctuary in the Hamilton and Halton Region. Government funding will assist with the rehabilitation of RBG s Rock Garden which will improve its structural integrity, water and sewage systems, visitor accessibility, and architectural landscape. The Royal Botanical Gardens is home to some incredible specimens of nature and holds an important place in our province s history, said the Honourable Ted McMeekin, Minister of Agriculture and Food and Rural Affairs. The restoration and rehabilitation of this cultural attraction will create job opportunities and make RBG s Rock Garden accessible for all visitors to enjoy. The federal initiative is supported by the Building Canada Fund while provincial funding will come from the Building Together Fund. This initiative has been identified as a priority for funding consideration under the federal Building Canada Fund. Provincially, the initiative supports Building Together, Ontario s long-term infrastructure plan. The Royal Botanical Gardens initiative has total eligible costs estimated at $14 million. (Source: Infrastructure Canada, December 19, 2011) The Greater Toronto Marketing Alliance Extends Foreign Company Contact to Attract New Business Halton Region and our Local Municipalities have continued to work closely with the Greater Toronto Marketing Alliance (GTMA) in 2011. The primary international markets for GTMA activities are the United States, Europe (Germany, France, U.K.), South America (Brazil) and Asia (India, Taiwan, South Korea and China). The GTMA s key economic sectors for international marketing in 2011 included Information Communications Technology ICT (Digital Media and Gaming), Advanced Manufacturing, Financial and Business Services, Agri-Food and Energy and Environmental Manufacturers and Services. In 2011, GTMA staff generated 330 prospective new business leads from company meetings in the United States, Germany, and Brazil and joint provincial and federal government initiatives. From this work, Halton Region and Local Municipal economic development staff met with or provided site selection information to 11 companies evaluating locations for new operations in the Greater Toronto Area. The Target Retail Distribution Centre and Credit Risk Management contact centre received information from this collaboration and have since located in Milton. The GTMA was founded in 1997 by GTA municipalities for the purpose of enhancing the international marketing of the Greater Toronto Area (GTA) as a location of choice for foreign direct investment. The GTMA is a not-forprofit corporation and was established and is funded as a public-private partnership. Regional Chair Gary Carr and John Davidson, Halton Region's Director of Economic Development, are Board members of the GTMA and Halton Region with other Regions and municipalities provides core funding for the GTMA. The GTMA works collaboratively with the 29 GTA Regional and Local Municipalities, the governments of Ontario and Canada, educational and not-for-profit organizations and a broad cross section of private sector corporations. Drawing on the expertise and resources of its partner organizations, the GTMA actively promotes the GTA internationally and provides companies with professional assistance in evaluating, planning and implementing an expansion or move to the GTA. Local Chambers of Commerce Halton Economic Development continued to work closely with the four local Chambers of Commerce in 2011 through the support of publications, award galas, participation at various events, seminars, and networking sessions. Halton s Economic Development Division once again co-hosted a joint Chamber Business After Five event in August. The Business After Five is a networking event in cooperation with the local Chambers of Commerce. It was another successful event, showcasing over 40 businesses and attended by over 300 people from the local business community. Innovation Stand Out in a Crowd: Bridges to Better Business Event Presents Marketing Strategies for Success In February, Halton Region s Small Business Centre hosted Bridges to Better Business Stand Out in a Crowd: Marketing Strategies for Success. This unique educational and networking event brought together small businesses from across Halton Region with inspiring speakers who shared their knowledge and experience. The session provided an opportunity to learn, exchange best practices and make valuable business connections. This year s keynote speaker was Ron Buist, the former Marketing Director for Tim Hortons and creator of the popular ROLL UP THE RIM TO WIN contest. Other presenters included Paula Hope from the Referral Institute-Peel-Halton who led a roundtable discussion on the elements of referral success and tips and tools needed for creating referrals for life. Successful local business owners Anne Day, Company of Women; Bill Coleman, Cameron s Brewing Co. and life coach Sue London shared advice during a panel discussion. The event was a success, with over 50 attending from the local business and entrepreneur community. Halton Works with Young Entrepreneurs to Help Start Their Own Business For the 11th consecutive year, the Halton Region Small Business Centre worked with 16 young entrepreneurs to help them start and grow their own businesses this summer. These students were selected to participate in the provincially funded Summer Company program. Through Summer Company, students received cash awards of up to $1,500 from the Ministry of Economic Development and Innovation to help pay for start-up costs. They also received up to an additional $1,500 at the end of the summer as an award for completing the program. This year s participants were selected from over 90 applicants from the Halton area. Their businesses included everything from photography, music and publishing services to dog walking, cleaning and yard services, cupcakes and more. 36 37

Halton Celebrates Entrepreneurship Week From November 14 to 20, Canadians celebrated Global Entrepreneurship Week. In Halton, the Halton Region Small Business Centre partnered with HalTech, Halton s Regional Innovation Centre, to host an engaging series of seminars and events focused on all things entrepreneurial. The seminars, held at the Sheridan College Institute of Technology and Advanced Learning in Oakville included topics such as communication, marketing and branding, perfecting a business pitch, mastering social media and Angel investing. Supporting the growth and success of innovative businesses in Halton is one of our key priorities, said Halton Regional Chair Gary Carr. We are fortunate to be able to partner with HalTech and RBC Royal Bank to offer such high calibre Entrepreneurship Week events. These events will provide a terrific learning experience and plenty of networking opportunities for people already in business, as well as those just now considering entrepreneurship as a career. The week's successful events were capped off with HalTech Connect, a networking event for start-ups to connect with peers and the business community. Halton Regional Innovation Centre Launch HalTech - Halton's Regional Innovation Centre officially launched on March 11, 2011 with an announcement at Sheridan College Institute of Technology and Advanced Learning in Oakville. Minister of Research and Innovation, Hon. Glen Murray, and Oakville MPP, Kevin Flynn made the official announcement of the new organization. With the launch, HalTech officially became part of the Ontario Network of Excellence (ONE), a provincially funded network of fourteen regional innovation centres and sector-focused not-for-profit organizations. The new Regional Innovation Centre in Halton will support the growth and success of innovative business in the Region - providing business coaching, entrepreneurial education, access to capital and strengthening connections for Halton companies. HalTech will soon become an important and active participant in Halton's business community. Economic Development Team Members John Davidson Director John.Davidson@halton.ca Ext. 7828 Sandra Nuhn Manager, Small Business Sandra.Nuhn@halton.ca Ext. 7228 Christine Carrington Economic Development Research Analyst Christine.Carrington@halton.ca Ext. 7132 Janet Marquez Tourism Development Coordinator Janet.Marquez@halton.ca Ext. 7740 Stephanie Mazhari Economic Development Coordinator Stephanie.Mazhari@halton.ca Ext. 7229 Angela Sugden Praysner Physician Recruitment Coordinator Angela.Sugden-Praysner@halton.ca Ext. 7929 Catharine Frith Business Consultant Catharine.Frith@halton.ca Ext. 7732 Robert Manning Business Consultant Robert.Manning@halton.ca Ext. 7522 Cameron Tulloch Business Consultant Cameron.Tulloch@halton.ca Ext. 7550 Margaret Gaskell Program Assistant Margaret.Gaskell@halton.ca Ext. 7826 Thank you to our sponsors, RBC, and the Ministry of Economic Development and Innovation. Partners Member of the Greater Toronto Marketing Alliance Tourism Burlington Burlington Chamber of Commerce Halton Hills Chamber of Commerce Milton Chamber of Commerce Oakville Chamber of Commerce Burlington Public Library Halton Hills Public Library Oakville Public Library Milton Public Library Sheridan Institute of Technology and Advanced Learning Join the conversation: www.haltonsmallbusiness.ca www.twitter.com/haltonecdev haltonsbec.wordpress.com www.facebook.com/haltonsbec Nancy Malloy Administrative Assistant Nancy.Malloy@halton.ca Ext. 7514 38

For more information, contact Halton Region Dial 311 or 905-825-6000 Toll free 1-866-4HALTON (1-866-442-5866) TTY 905-827-9833 www.halton.ca LPS-12027