Extract From Economic Development Task Force Meeting EDTF#02-17 held April 12, 2017
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1 Extract From Economic Development Task Force Meeting EDTF#02-17 held April 12, 2017 Agenda Item 10.1 Scheduled Business 7. Funding for The Richmond Hill Centre for High-Tech Business Development (Staff Report SRCAO.17.10) 8. Expanding CAO s Delegated Authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development (Staff Report SRCAO.17.13) Moved by: Mayor Barrow That the Economic Development Task Force recommends to Council: a) That report staff report SRCAO regarding Funding for The Richmond Hill Centre for High-Tech Business Development, and staff report SRCAO regarding Expanding CAO s Delegated Authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development, be received. Clause (a) of the Motion Carried Unanimously Moved by: Mayor Barrow b) That criteria c(ii) outlined in staff report SRCAO17.03 to provide funding to The Richmond Hill Centre for Hi-Tech Business Development be revised so that: i) The allocation of $25,000 from the existing Strategic Initiatives, Office of the CAO 2017 and 2018 Operating Budgets be made available to The Richmond Hill Centre for Hi-Tech Business Development in one payment per year after the Operating Budget has been approved in 2017 and 2018; ii) The Richmond Hill Centre for Hi-Tech Business Development provide the Town with a report on or before December 1, 2017 and 2018, detailing how the funds were spent. Clause (b) of the Motion Carried 77
2 Extract From Economic Development Task Force Meeting EDTF#02-17 held April 12, 2017 Moved by: Mayor Barrow c) That the Chief Administrative Officer be authorized to make arrangements with The Richmond Hill Center for Hi-Tech Business Development to occupy available space within 225 East Beaver Creek for nominal consideration or below fair market value and to enter into and execute any necessary agreement or other document relating to such arrangement. The complete motion to read as follows: Clause (c) of the Motion Carried Unanimously Moved by: Mayor Barrow Recommendation 1 That the Economic Development Task Force recommends to Council: a) That report staff report SRCAO regarding Funding for The Richmond Hill Centre for High-Tech Business Development, and staff report SRCAO regarding Expanding CAO s Delegated Authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development, be received. b) That criteria c(ii) outlined in staff report SRCAO17.03 to provide funding to The Richmond Hill Centre for Hi-Tech Business Development be revised so that: i) The allocation of $25,000 from the existing Strategic Initiatives, Office of the CAO 2017 and 2018 Operating Budgets be made available to The Richmond Hill Centre for Hi-Tech Business Development in one payment per year after the Operating Budget has been approved in 2017 and 2018; ii) The Richmond Hill Centre for Hi-Tech Business Development provide the Town with a report on or before December 1, 2017 and 2018, detailing how the funds were spent. c) That the Chief Administrative Officer be authorized to make arrangements with The Richmond Hill Center for Hi-Tech Business Development to occupy available space within 225 East Beaver Creek for nominal consideration or below fair market value and to enter into and execute any necessary agreement or other document relating to such arrangement. 78
3 Staff Report for Economic Development Task Force Report Number: SRCAO Department: Division: Subject: Office of the Chief Administrative Officer Office of Strategic Initiatives Funding for The Richmond Hill Centre for Hi- Tech Business Development Purpose: The purpose of this report is to request Council s approval to modify the criteria for providing funding to The Richmond Hill Centre for Hi-Tech Business Development. Recommendations: a. That report SRCAO be received by Council; b. That criteria c(ii) outlined in SRCAO17.03 to provide funding to The Richmond Hill Centre for Hi-Tech Business Development be revised so that: (i) The allocation of $25,000 from the existing Strategic Initiatives, Office of the CAO 2017 and 2018 Operating Budgets be made available to The Richmond Hill Centre for Hi-Tech Business Development in one payment per year after the Operating Budget has been approved in 2017 and 2018 (ii) The Richmond Hill Centre for Hi-Tech Business Development provide the Town with a report on or before December 1, 2017 and 2018, detailing how the funds were spent. Contact Person: Brenda Osler, Coordinator Economic Development Programs, extension 5483 Submitted by: "Signed version on file in the Office of the Clerk" Gwen Manderson Director Strategic Initiatives 79
4 Town of Richmond Hill Economic Development Task Force Report Number: SRCAO Page 2 Approved by: "Signed version on file in the Office of the Clerk" Neil Garbe Chief Administrative Officer Background: Funding Criteria for The Richmond Hill Centre for Hi-Tech Business Development At the February 15, 2017 Economic Development Task Force meeting, staff report SRCAO was considered. This report provided an update to the Israel business mission and also requested financial support for The Richmond Hill Centre for Hi-Tech Business Development. At that meeting The Economic Development Task Force recommended to Council the following: a) That staff report SRCAO regarding the 2016 Business Mission to Israel and Proposed Richmond Hill Centre for Hi-Tech Business Development be received; b) That $25,000 from the existing Strategic Initiatives, Office of the CAO 2017 and 2018 Operating Budgets be used to support The Richmond Hill Centre for Hi-Tech Business Development; c) That prior to Town funding being made available to The Richmond Hill Centre for Hi-Tech Business Development, the following conditions are satisfied: i) the Centre is incorporated; ii) the Centre provides evidence that the start-up costs identified in staff report SRCAO have been incurred; d) That staff report to Council in 2019 on the benefits received from funding The Richmond Hill Centre for Hi-Tech Business Development; e) That the Chief Administrative Officer and staff look into vacant Town owned or Regional vacant space for use by The Richmond Hill Centre for Hi-Tech Business Development for a period of up to one year. The February 15, 2017 Economic Development Task Force recommendations were considered by Committee of the Whole on March 21, 2017 and approved by Council on March 27, Since the Economic Development Task Force considered SRCAO.17.03, staff have been advised of new information that impacts the Town s funding arrangements with the 80
5 Town of Richmond Hill Economic Development Task Force Report Number: SRCAO Page 3 Centre. The Centre has now been incorporated (meeting criteria c) i) however staff have learned that not-for-profit organizations such as the Centre have special responsibilities regarding recordkeeping. Included in these responsibilities is a stipulation that these organizations will not spend money that has not yet been deposited into a bank account to cover expenditures. Given this requirement, criteria c (ii) will need to be modified so that the Centre can receive funding from the Town. As the Town s $25,000 contribution is required by the Centre to become operational, it is recommended that the Town provide each year s funding to the Centre in one payment after the operating budget is approved that year. Should Council approve the recommendation, 2017 funding would be provided to the Centre as soon as possible. Funding for 2018 would be provided to the Centre immediately following the approval of the 2018 Operating Budget. In addition, it is recommended that the Centre submit a report (and supporting documentation) on or before December 1, 2017 and 2018 detailing how the funds have been spent. Financial/Staffing/Other Implications: The costs identified in report SRCAO for funding The Richmond Hill Centre for Hi- Tech Business Development are $25,000 per year in 2017 and Funding is currently available in the Strategic Initiatives Division 2017 Operating Budget for the International Investment Program and will be reallocated for this purpose. Should the Strategic Initiatives Division operating budget be impacted during 2018 budget deliberations, staff would need to reassess whether funding is still available for this purpose. This report recommends providing the funding in one payment each year and earlier in 2017 and Relationship to the Strategic Plan: One of the goals of the Town s Strategic Plan is to have better choice in Richmond Hill for working and doing business. Supporting the creation of The Richmond Hill Centre for Hi-Tech Business Development supports this goal by furthering the Town s international economic alliances thus bringing more opportunities for business attraction or expansion to Richmond Hill. Expansion of existing businesses or the addition of new businesses to Richmond Hill creates additional employment opportunities for Richmond Hill residents. Conclusion: Supporting the creation of The Richmond Hill Centre for Hi-Tech Business Development will assist with attracting foreign companies to Richmond Hill, potentially creating new employment opportunities. Continued investment and business attraction are key to maintaining competitive advantage and prosperity currently enjoyed by the Town. Modifying the criteria for providing the funding allows the Centre to become operational while meeting their obligations as a not-for-profit organization. 81
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7 Staff Report for Economic Development Task Force Report Number: SRCAO Department: Division: Subject: Office of the Chief Administrative Officer Office of Strategic Initiatives Expanding CAO s delegated authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development Purpose: The purpose of this report is to request Council s approval to modify the CAO s delegated authority to permit the CAO to enter into an agreement to lease Town owned space to The Richmond Hill Center for Hi-Tech Business Development at no cost. Recommendations: a. That report SRCAO be received by Council; b. That the Chief Administrative Officer be authorized to make arrangements with The Richmond Hill Center for Hi-Tech Business Development to occupy available space within 225 East Beaver Creek for nominal consideration or below fair market value and to enter into and execute and necessary agreement or other document relating to such arrangement Contact Person: Brenda Osler, Coordinator Economic Development Programs, extension 5483 Submitted by: "Original signed by Acting Director D. Olding on file in the Office of the Clerk" Gwen Manderson Director Strategic Initiatives 83
8 Town of Richmond Hill Economic Development Task Force Expanding the CAO s delegated authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development Page 2 Approved by: "Signed version on file in the Office of the Clerk" Neil Garbe Chief Administrative Officer Background: Delegated Authority Regarding Leasing Town-Owned Space At the February 15, 2017 meeting, The Economic Development Task Force recommended that Council request that the Chief Administrative Officer and staff look into vacant Town owned or Regional space for use by The Richmond Hill Center for Hi- Tech Business Development for a period of up to one year. Although not included in the Task Force s recommendation the discussion included providing the space at no cost to the Center. Staff investigated a number of options. A small amount of space (approximately 360 square feet in two rooms) is available for one year at 225 East Beaver Creek Road. This transitional space is part of the much larger space that will be used for staff offices as part of the accommodation plan. If the Center needs to expand into additional space during the year, staff will determine whether any space is available at the time. Currently, the CAO has delegated authority to authorize the letting of space for fair market value and the entry into and execution of any agreement or other documentation to implement the letting of space. Given the intent that the space be provided at no cost, the CAO s delegated authority regarding letting of space will need to be expanded. Staff are recommending that the CAO s delegated authority be expanded to authorize the letting of space to The Richmond Hill Center for Hi-Tech Business Development at no cost and the entry into and execution of any agreement or other documentation to implement the letting of space. Financial/Staffing/Other Implications: The space at 225 East Beaver Creek Road for The Richmond Hill Center for Hi-Tech Business Development would be provided at no cost to the Center and for up to a one year term only. There will be costs to create an entrance to the space that is separate from the larger space that will house Town staff, as well as minor costs to make the space usable such as painting and replacing ceiling tiles. These costs are estimated to be $10,000 and will be accommodated in the Environment and Infrastructure Services Asset Management 2017 Minor Capital Operating Budget. 84
9 Town of Richmond Hill Economic Development Task Force Expanding the CAO s delegated authority to be able to enter into a lease agreement with The Richmond Hill Center for Hi-Tech Business Development Page 3 Relationship to the Strategic Plan: One of the goals of the Town s Strategic Plan is to have better choice in Richmond Hill for working and doing business. Supporting the creation of the Richmond Hill Center for Hi-Tech Business Development supports this goal by furthering the Town s international economic alliances thus bringing more opportunities for business attraction or expansion to Richmond Hill. Expansion of existing businesses or the addition of new businesses to Richmond Hill creates additional employment opportunities for Richmond Hill residents. Conclusion: Supporting the creation of the Richmond Hill Center for Hi-Tech Business Development will assist with attracting foreign companies to Richmond Hill, potentially creating new employment opportunities. Continued investment and business attraction are key to maintaining competitive advantage and prosperity currently enjoyed by the Town. Providing the Center with space at no cost for up to one year will help the Center to be operational sooner and will allow the Center to allocate their funding to providing services to the companies involved with the Center. 85
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