Business Plan 2010

2010Business Plan

Edmonton Economic Development Corporation

edmonton.com

November 12, 2009

CONFIDENTIAL - FOR INTERNAL USE ONLY

edmonton.com

Leadership | Innovation | Recognition


1. EXECUTIVE SUMMARY ..................................................................................................... p. 1-2

2. INTRODUCTION .................................................................................................................. p. 3-42.1 Mission

2.2 Vision

2.3 Core Values

3. KEY DRIVERS ....................................................................................................................... p. 5-83.1 Mandate

3.2 Current Economic Climate

3.3 Link to “The Way Ahead”

3.4 2009 EEDC Long Term Strategic Plan

4. EEDC STRATEGIES AND 2010 PRIORITIES ........................................................................ p. 9-14Priority #1: Community EngagementPriority #2: Catalyst for ChangePriority #3: Foster InnovationPriority #4: Grow Key Assets and IndustriesPriority #5: Global AppealPriority #6: Global Recognition

5. CORPORATE OVERVIEW - Core Business Unit Priorities ............................................... p. 15-225.1 Shaw Conference Centre

5.2 Tourism

5.3 Economic Development

5.4 Edmonton Research Park

5.5 External Relations

5.6 CFO and Administration

5.7 Human Resources

6. FINANCIAL PLAN ............................................................................................................ p. 23-266.1 Operating Budget

6.2 Capital Budget

7. APPENDICES ..................................................................................................................... p.27-34

APPENDIX A - Indicators of Success

APPENDIX B - EEDC Statement of Operations

APPENDIX C - 2009 - 2013 Capital Program

TABLE OF CONTENTS

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Edmonton Economic Development Corporation (EEDC) is an independent corporation established by the City of Edmonton. It is responsible for managing the Shaw Conference Centre, managing the Edmonton Research Park and delivering coordinated and cost eff ective tourism and economic development initiatives for Edmonton. EEDC’s purpose is to create sustainable economic growth and development for Edmonton with the vision of having Edmonton recognized as one of the world’s top fi ve mid-sized cities by 2030. Th e 2010 Business Plan is designed to be an incremental step toward achieving this vision, through the creation of priorities and initiatives for EEDC to focus on, execute and measure over the next year.

In preparing its business plan for the 2010 fi scal year, EEDC has considered four major drivers. Th e fi rst of these is EEDC’s mandate to promote economic development. Th e second driver is the current economic climate. Th e third driver is Th e Way Ahead, the City of Edmonton’s strategic plan. Th e fourth driver is EEDC’s long term strategic plan that was developed earlier this year in the context of the economic conditions anticipated for the region. Signifi cant due diligence was undertaken to ensure that EEDC’s Business Plan and Strategic Plan would be complementary and work in tandem with the Province of Alberta’s Economic Development plan and sectors of focus.

EEDC’s strategic plan outlines a vision of Edmonton that is focused on increasing the standard of living for Edmontonians. Th e plan is centered on 2 strategic goals:

• Enhancing income growth – Th is is a leading driver for standard of living. Th e focus on income growth is required to ensure that residents participate and benefi t from growth in the region, through an increase in material well being. Income growth in Edmonton is tied to the growth of a knowledge economy.

• Improving the quality of life – EEDC considers quality of life to constitute anything that enhances the livability of Edmonton, and makes it a more desirable place to live and visit. Quality of life is one of the leading drivers for future success, as it infl uences Edmonton’s ability to attract and retain smart people and investment.

Th e availability of smart people dictates the strength of a knowledge economy, as they are the ones that generate new ideas and opportunities. Smart people are viewed to be innovative, creative, and seek out solutions to today’s and tomorrow’s problems. With future economic success now being tied to smart people, the goals of income growth and quality of life become interdependent. Smart people can choose to live anywhere they wish and quality of life is usually a key factor in their decision. Without the quality of life, income growth is more challenging to attain.

In pursuit of these goals EEDC continues to be guided by the 3 strategic focuses of leadership, innovation and recognition. Within the framework of these focuses and the context of our key drivers, 6 priorities have been identifi ed for 2010. Th ese priorities each align and build towards EEDC’s long term vision.

Leadership

1. Community Engagement – community input, support and assistance for EEDC’s priorities. 2. Catalyst for Change - initiating action and dedicating internal resources.

Innovation

3. Foster Innovation - stimulate innovation by creating an environment where it can thrive. 4. Grow Key Assets and Industries – building and supporting the foundation for knowledge based industries.

1 EXECUTIVE SUMMARY

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Recognition

5. Global Appeal – addressing quality of life and tourism development opportunities. 6. Global Presence – increasing visibility and recognition of Edmonton on a global stage.

Th e following diagram depicts EEDC’s strategic focuses and how they relate to the organization’s 2010 Business Plan priorities and initiatives. Th e goals of Income Growth and Quality of Life are long-term and can only be accomplished over the course of several years. Th e priorities identifi ed for 2010 are a single component of a multi-year strategy, designed to achieve the goals. Internally each priority is supported by 2 initiatives. Subsequent years will build upon the foundations achieved in 2010.

While EEDC’s business plan is designed to make Edmonton a world-class city, this goal will be achieved through the eff orts of many, including EEDC. Achieving this goal will require dedication and perseverance from the organization, the Board, the City, business & community leaders, and external stakeholders. Recognizing the need for external support and assistance is essential. Actively mobilizing the support required is critical for success.

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CommunityEngagement

- Business & Economic

Leader’s Forum

- Mobilize Tourism Industry

Catalyst forChange

- Vibrant Urban Core

- Expanded Convention Space

FosterInnovation

- Technology Commercial-

ization Strategy

- Research Park Development

Grow KeyAssets &

Industries

- Port Alberta

- Economic Diversi- fi cation - Life Sciences - F.I.R.E. - Advanced Technology

GlobalAppeal

- Tourism Develop- ment - Quality of Life

GlobalRecognition

- Digital Strategy

- Enhanced Global Presence

Top Five Mid-size City(Standard of Living)

Income Growth

Quality of Life

Leadership Innovation Recognition2010StrategicFocuses

Priorities

2010Initiatives

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2 INTRODUCTION

Edmonton Economic Development Corporation (EEDC) is a corporation established by the City of Edmonton (City) for the purposes of promoting economic development. In addition to its core economic development responsibilities, the City has also assigned to EEDC responsibility for tourism development, the management of the Shaw Conference Centre (SCC), and management of the Edmonton Research Park.

In 2009, EEDC developed a long-term strategic plan to guide the organization as it moves towards achieving its vision. Th e strategic plan provides a high level roadmap that outlines the organization’s eff orts over the next 15-20 years. Th e short-term priorities and initiatives contained within the annual business plan, were developed in context with the strategic plan and the 2009 Business Plan. Th e 2010 Business Plan also aligns with the strategic focuses of the organization: Leadership, Innovation and Recognition. Th is business plan demonstrates how EEDC will accomplish the goals and objectives that move the organization towards its vision.

2.1 Mission

“To promote the sustainable economic growth and development of Edmonton”.

For EEDC, sustainable economic growth is best equated to growth in the standard of living. Standard of living is a combination of quality of life and income growth. Subordinate to this, but still critical to EEDC’s role, is to ensure Edmonton is recognized globally.

2.2 Vision

“To ensure Edmonton is recognized as one of the world’s top fi ve mid-sized cities by 2030”.

EEDC defi nes a leading mid-sized city as a city with one of the highest standards of living, and a place where people choose to work, live and visit. Being recognized as one of the top fi ve cities will be measured through international ratings of relative quality of life and prosperity.

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2.3 Core Values

In 2009, EEDC embarked on a process to determine core values for the organization. Th e process for determining the organization’s core values included input from all employees. Th e core values process was refl ective of the importance management has placed on determining values which refl ect EEDC’s culture and priorities.

For EEDC, the core values had to represent not only what the staff held as important, but also frame how employees are expected to conduct themselves and behave within the organization. Th e core values chosen are representative of EEDC’s principles and morals. Th ey are designed to guide the organization and staff in all aspects of work.

Our Values are promises to ourselves and our stakeholders to promote the economic development of the Edmonton region through:

Leadership Excellence. We are leaders and positive role models in all we do.

Integrity. We do the “right thing” and honour our commitments. We ensure our work environment is safe and we demonstrate ethical behavior at all times.

Respect. We embrace open communication, fairness and diverse perspectives.

Spirit of Innovation. We are open to new ideas, take informed risks, and encourage creativity to achieve competitive advantages.

Pride and Passion. We recognize balance is important and we strive to make Edmonton and our organization a great place to live and work.

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In preparing the annual business plan for the corporation, the Board of Directors and management of EEDC considered a number of factors that have infl uenced the development of the plan. Th ese factors or key drivers are discussed below.

3.1 Mandate

In 1992, EEDC was established as an independent corporate entity by the City of Edmonton. With its formation, the City transferred into EEDC management responsibility for four distinct functional areas that had previously been the responsibility of separate organizations, either within or affi liated with the City of Edmonton. Th ese functional areas were:

- Promotion of economic development- Promotion of tourism development- Management and development of what is now known as the Shaw Conference Centre- Management and development of the Edmonton Research Park

In establishing EEDC, it was the intention of the City to create an organization that could exploit the natural synergies that existed between these diff erent functional areas. EEDC is also responsible, on behalf of the City, for TEC Edmonton. TEC Edmonton is the joint-venture entity created by the University of Alberta and EEDC for the purposes of commercializing Research and Development.

Th e vision, goals and objectives of EEDC were created within the framework of the organization’s mission. Additional due diligence was then conducted to ensure the organization aligned to the City’s strategic plan. Th e 2010 priorities and initiatives outlined in this business plan are specifi c to the EEDC organization.

3.2 Current Economic Climate

Th e economic climate from 2008 - 2009 is best described as turbulent. In the past 20-months, economic conditions worldwide have deteriorated signifi cantly. Th e price of oil dropped from a high of $150/barrel to approximately $35/barrel, and then began to rise. EEDC’s 2009, and 2010 Business Plan are based on an average annual oil price of $60 - $80 a barrel. Th e organization remains confi dent with this forecast for 2010.

Oil prices continue to have an impact on Edmonton’s economy. With declining volumes of conventional oil production, and an escalation of oilsands developments, the day-to-day fl uctuations in oil prices are less important than the expected long-term price of oil. Th e expected long-term price of oil infl uences future investment in the region, and therefore becomes a better barometer for gauging economic conditions for Edmonton. Long-term oil prices are expected to increase from their current levels, and this would be benefi cial for future economic conditions in the region.

Edmonton has not been immune to the recessionary forces that have aff ected the world. Edmonton’s unemployment rate exceeded 7% in August of 2009. Th is rate of unemployment is above the ideal natural rate of unemployment (~5%) for an industrialized economy. However, it remains well below the 10%+ unemployment rate currently experienced throughout parts of Ontario. EEDC believes that Edmonton’s economy is well positioned to endure the impacts of the current economic decline.

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3 KEY DRIVERS



Th e short-term ramifi cations of the recession are predominately aff ecting the ability of industry and government projects to continue. Th e provincial government is being signifi cantly impacted by declining revenues, a result of depressed natural gas prices. A rebound in natural gas prices, and subsequently provincial coff ers, is not anticipated for the next 18-month period. Natural gas royalties account for a signifi cant portion of provincial revenue. Th e anticipated reduction in provincial revenue may impact current and future infrastructure spending in the region. Th erefore, it follows that a sharp V shaped rebound is not anticipated for the region.

Th e longer-term outlook for the region remains positive. Investment and interest in the oilsands continues, and businesses in the region continue to maintain a positive perspective on the future. Th e current economic conditions have delayed any discussion of up-graders in the region in the near-term. However, the recession is resulting in declining construction prices, which is a positive sign for future investment in the region.

Current conditions have amplifi ed the need for businesses to become more productive and effi cient. EEDC is not immune. Pressure on the organization’s operating budget has resulted in a need for a greater internal focus on innovation and the ability to do more with less. EEDC continually strives for increased effi ciency and results-orientated action

Th e current economic conditions have been factored into EEDC’s 2009 Business Plan. Th erefore, no material change in direction is required for 2010. A gradual rebound in economic conditions is anticipated over the next 18 months. Edmonton and Alberta will likely precede the rest of the country out of the recessionary conditions currently experienced.

EEDC’s long-term outlook for Edmonton also remains unchanged. As the global economy improves, development in the oilsands will continue and Edmonton will again surpass the natural rate of employment.

3.3 Link to “The Way Ahead”

EEDC’s vision of 2030 aligns with and supports the City of Edmonton’s vision for the future. Th e City of Edmonton created “Th e Way Ahead”, a strategic plan for improving both the quality of life and services for citizens, now and in the future. Th e Way Ahead’s vision depicts a city of mixed cultures and recreational opportunities, as well as a powerful and diverse economy. From universities and colleges, to research parks and downtown offi ce towers, Edmonton will be a centre for not only life sciences and advanced technologies, including green technologies, but also an economic powerhouse, a logistics and transportation hub, and an entrepreneurial centre. Th e City’s plan is driven by the principles of:

• Integrated planning• Sustainability• Livability• Innovation

EEDC used Th e Way Ahead’s vision and principles as an input into the organization’s strategic planning process and annual business plan. Th e priorities outlined for 2010 were vetted to ensure that this fundamental alignment continues.

Th e focus on more smart people provides the region with the essential component for future economic success. In this regard, EEDC’s focus is viewed as complementary to the Provincial strategies. Th e Province of Alberta is focused more specifi cally on industries and their growth, while EEDC is focused on the foundational building blocks and sectors that will stimulate and feed future growth.

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3.4 2009 EEDC Long-Term Strategic Plan

EEDC’s desire for creating a leading mid-sized city can be achieved through increasing the standard of living in the region. An increased standard of living will be driven off the strength of the region’s knowledge economy and prerequisite to this, the availability of smart people. Knowledge economies are dependant on maintaining an abundance of smart people that are able to generate new ideas and opportunities. Smart people are viewed to be innovative, creative, and seek out solutions to today’s and tomorrow’s problems (the term smart people is not a specifi c reference to educational attainment). Smart people are needed in all industries ranging from hospitality to life sciences and technology. Considering smart people as an asset is a departure from the traditional view where natural resources and geographic location were the sources of competitive advantage.

Developing, attracting and retaining smart people is critical, as are the mechanisms to share knowledge and ideas within the community. Flowing from this change is an increase in the importance of “Quality of life” aspects within the greater economic development framework, as these are now paramount in attracting and retaining smart people.

To ensure a sustainable increase in the standard of living is achieved, EEDC is focused on 2 goals:

1. Enhancing income growth – Th is is a leading driver for standard of living. Th e focus on income growth is required to ensure that residents participate and benefi t from growth in the region, through an increase in material well being.

2. Improving the quality of life – EEDC considers quality of life to constitute anything that enhances the livability of Edmonton, and makes it a more desirable place to live and visit. Th is is one of the leading drivers for having more smart people and it also improves the city for existing residents.

Smart people are able to live almost anywhere they wish to. Technology and globalization now make it so that the ideas they generate, the opportunities they pursue and the innovation they create are not bound by geographic borders. As such, the choice of where they choose to live becomes more and more a factor of the quality of life they desire. In this way, quality of life and income growth are becoming mutually inter-dependant.

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To achieve a sustainable increase in the standard of living, EEDC will pursue the following long-term objectives for income growth and quality of life.

Income Growth

Sustained economic growth for Edmonton will be achieved through better utilization of human and capital resources, rather than by increasing the availability of resources. Growth achieved using the same resources more effi ciently will result in increased incomes, and thereby standards of living. Th e focus areas for income growth are:• Develop and nurture future industries – Development

of a knowledge-based economy, reducing dependency on unrefi ned oil and gas.

• Innovation – Develop into a regional hub of innovation, anchored by a world class research park.

• Entrepreneurship – Effi cient ability to move from ideas to markets.

• Advanced Education – A leading centre for education with increased levels of educational quality and attainment.

• Immigration – Increased infl ow of global talent, resulting in greater diversity.

• Productivity improvements – A leader in technology adoption, resulting in higher productivity rates than other regions.

• Optimized labour pool – Increase education levels and migration of workers into higher value positions.

Quality of Life

Quality of life for a city consists of social and qualitative issues such as safety, health, advanced education, culture, diversity and many others. Given the endless array of possibilities to become involved with, EEDC is focused on the areas where the organization can make a positive contribution. Th e focus areas for quality of life are:

• Downtown development – An active and vibrant urban core. • River valley development –Edmonton’s crown jewel is developed to achieve a balance between protecting the

natural beauty, and providing access and amenities, thereby creating a distinctive asset. • Global events and festivals – Increasing Edmonton’s global profi le by hosting world class events (Expo 2017).• Increased global presence – Be recognized as a leading mid-sized city through strengthened image, reputation

and accessibility.• Social improvements – Improved living standards and an increased quality of life for all residents.

Th e outcome from these strategic objectives will be more smart people and a more desirable place to live. Th e two inter-dependent components combine to result in improvements to the region’s standard of living.

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4 EEDC STRATEGIES AND 2010 PRIORITIES

EEDC aims to help Edmonton achieve the objectives defi ned for Income Growth and Quality of Life by continuing to focus eff orts on Leadership, Innovation and Recognition. Th e diagram below depicts a simplifi ed perspective on how EEDC will accomplish the goals and objectives the organization has identifi ed.

Leadership: As a starting point, EEDC must ensure strong engagement between the organization and all stakeholder communities. Creating these relationships ensures EEDC is focused on the right activities and priorities. Th ese partnerships of infl uence need to provide input, validation, feedback and assistance in execution of EEDC’s initiatives.

EEDC will also pursue Edmonton’s interests by becoming a catalyst for change. Th is can be accomplished by starting a process and inspiring others, or by initiating action and completing an initiative with EEDC’s internal resources.

Innovation: Innovation is critical for creating the knowledge economy of the future. New innovation can fl ourish and thrive when ideas are supported by the right environment. EEDC will utilize its assets and programs to create this environment.

Creating a knowledge economy requires developing industry sectors that have the potential to be globally competitive through innovation. To create long-term sustainable economic growth, EEDC needs to focus on our six targeted sectors of Financial Services, Life Sciences, Advanced Technologies, Advanced Education, Tourism and Energy.

Recognition: Ensuring Edmonton is a city of choice is critical to attracting and retaining smart people, tourists, knowledge and investment. Building the quality of life and assets that appeal to both residents and visitors will make us a globally attractive centre.

Creating the awareness and recognition required to inform the world of Edmonton’s strengths is a continuous process. Global recognition of Edmonton facilitates the attraction of tourists, investment, and immigration of more smart people to the region.

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Stakeholders

Industry

Community

NGO

Government

Partnershipsof infl uence

ChangeAgent

IdeaGeneration

StrengthenEconomy

City ofChoice

CreateAwareness

Leadership Innovation Recognition

Edmonton

Communicateto the World

Feedback

CommunityEngagement

Catalyst forChange

FosterInnovation

Grow KeyAssets /

Industries

GlobalAppeal

GlobalPresence



Each of the steps identifi ed are discrete, yet inter-dependent. Th e actions identifi ed through each of these steps demonstrate how EEDC will use Leadership, Innovation and Recognition to achieve success. Based on EEDC’s focus areas and the key drivers previously discussed, EEDC’s Business Plan has identifi ed six priorities for 2010.

Leadership 1. Community Engagement 2. Catalyst for Change

Innovation 3. Foster Innovation 4. Grow Key Assets and Industries

Recognition 5. Global Appeal 6. Global Presence

Th e next section outlines how EEDC intends to apply this framework and the six priorities to advance the strategy. Each priority has 2 supporting initiatives for 2010, which describe the actions the organization intends to execute.

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Leadership

EEDC is in a unique position to infl uence change. It can infl uence this change in any of three ways:

• Take the initiative and execute• Be a contributing member of a team• Be a vocal advocate, supporting the initiatives of other groups

Acting as an agent for change, the organization could have the ability to ignite positive change, and advocate for what is in the long-term interests of the region. However, leadership must be earned. Th is entails actively demonstrating commitment through actions, focus, and results. EEDC’s actions will earn this leadership role and enable it to garner a broad base of support for its initiatives, which will then generate the assistance required to pursue the goals and objectives of the organization.

Priority #1: Community EngagementSuccessfully achieving EEDC’s vision will require committed input and support from external organizations. Support for EEDC’s priorities and Edmonton’s long-term goals will require active feedback and participation from a broad base of Edmonton business people, residents, tourists and EEDC Board members. Creating successful partnerships will enable EEDC to infl uence initiatives that fall outside of its traditional mandate.

2010 Initiatives:• Business and Economic Leader’s Council EEDC will engage 100 to 150 business leaders and other stakeholders to support and endorse the

organization’s economic development plan, and encourage external parties to participate in its execution. EEDC will identify the Council’s top 5 concerns regarding economic growth in Edmonton.

• Mobilize Tourism Industry EEDC is uniquely positioned to receive feedback from visitors and partners that can be used to identify

opportunities to make Edmonton a destination of choice. EEDC will leverage its 600 tourism partners to ensure the industry is engaged, identify issues, and develop a plan.

Priority #2: Catalyst for ChangeEEDC needs to take an active role in creating change. Management philosophy indicates that a good leader must play a multitude of roles (supporting, directing, encouraging and facilitating) for success to occur. A leader does what is necessary to ensure success. EEDC can become a catalyst by initiating action and dedicating internal resources.

2010 Initiatives:• Vibrant Urban Core Th ere is a strong indication that 2010 could be a signifi cant year for downtown development. EEDC

can be an instrumental component in the design and makeup of the aggregate downtown plan, through its assets managed and its leadership role within the community. A vibrant urban core is an essential element for creating an environment conducive for a generation of smart people and the knowledge economy they will help to create. EEDC will champion and support signifi cant downtown projects.

• Expanded Convention Space Th e SCC is near capacity and future growth in economic impact is minimal. In the 1st quarter of

2010 EEDC will present a long term convention strategy for Edmonton. Th e strategy will include a recommendation on how to increase available convention space, in conjunction with all interested parties. For the balance of 2010, EEDC will focus on the business plan to pursue this recommendation.

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Innovation

Innovation is critical for long-term sustainable economic growth. For Edmonton to become recognized as one of the world’s leading mid-sized cities by 2030, it needs to build an advanced economy that is envied and emulated worldwide. Creating this type of knowledge-based economy requires an almost obsessive compulsion for innovation. Innovation can come in the form of technology applications, or simply new ideas applied within existing organizations. Th e global economy is shifting, and the economies who recognize this and are able to ‘do more with less’ will be the global winners.

Priority #3: Foster InnovationA knowledge economy is driven by innovation. Innovation in products, processes, and business models will be instrumental for future growth. Innovation and commercialization diversifi es the economy, and builds on Edmonton’s current strengths. Creating the environment where innovation fl ourishes and smart people can excel is essential. EEDC’s role is to stimulate innovation by creating the foundational building blocks for an environment where innovation can thrive, and also to facilitate the process for capitalizing on the innovation that occurs.

2010 Initiatives:• Technology Commercialization Strategy TEC Edmonton plays a vital role in the commercialization of new technologies within the broader

regional technology commercialization strategy. EEDC will become an active joint venture partner in TEC Edmonton, changing the operating model based on engagement in the provincial technology commercialization strategy by third quarter 2010.

• Research Park Development 2010 will see three out of the fi ve remaining lots fi lled at the Research Park. Th is is the fi rst step toward

expanding the Park to the south. EEDC will also complete the “Southland” expansion business case.

Priority #4: Grow Key Assets and IndustriesGrowth in the region’s key assets and industries is essential for economic development. EEDC continues to focus on the 6 key sectors, as noted on page 9, that are deemed to be existing strengths with the future potential to be globally competitive. A signifi cant portion of these sectors are knowledge based industries with key strengths in the region. Th e future of these knowledge industries will require persistent innovation and a plethora of smart people for their growth and success.

EEDC continues its eff orts to diversify the regional economy from its reliance on unrefi ned natural resources. Th is requires building the foundational supports for new knowledge based industries to thrive in the region. EEDC’s focus is to continue building the foundational supports required for the growth of industries like Financial Services, Life Sciences, Advanced Technologies, and Advanced Education.

2010 Initiatives:• Port Alberta EEDC will assume a management role for the Port Alberta initiative, determine if there is a viable

business model, and enact an appropriate action plan. If the business model is approved by stakeholders, the business case will be implemented and funding pursued.

• Economic Diversifi cation EEDC will execute on the Financial Services and Advanced Technology strategies and also develop the

strategy for Life Sciences.

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Recognition

Quality of life plays an instrumental role in achieving an increased standard of living. Recognition as a world-class city requires Edmonton to be world-class. Edmonton has the potential to shine on the world stage, if improvements can be made in some aspects of the city. EEDC will actively champion essential quality of life and tourism development opportunities as identifi ed by business leaders and tourism groups. EEDC will strive to continually improve the city and subsequently quality of life, making it a place where people choose to visit and live.

Priority #5: Global AppealMaking Edmonton a destination of global appeal is predominantly an issue of quality of life and visitor amenities. Both are important for enhancing our global image and attracting visitors. Th e community engagement initiatives outlined earlier will provide EEDC with a list of issues and priorities as determined by the business and economic leaders of the region, and also from feedback from visitors.

2010 Initiatives:• Tourism Development From the feedback provided by visitors and the tourism industry, EEDC will aid in the development of

new events and services, and initiate four cultural awareness training programs to ensure Edmonton is properly positioned in the future with reasons for visitors to come, or stay longer.

• Quality of Life It is contingent upon EEDC to utilize the information and feedback received from the Business and

Economic Leader’s Council and other community engagement activities. Th is input will be used to formulate initiatives to rectify or improve 2 of the quality of life issues identifi ed.

Priority #6: Global RecognitionPromoting Edmonton’s strengths on a global stage is essential for future growth. EEDC’s goal of more smart people places a signifi cant reliance upon immigration to complement the existing wealth of smart people already residing in the region. Attraction of people, investment, business, and tourists are all facilitated through an increased recognition of Edmonton on a global stage.

2010 Initiatives:• Marketing Strategy In 2010, specifi c interest will be placed on digital media. EEDC will better leverage the opportunities

social media and the internet provide. EEDC will be positioned to deliver information in the way our customers want to access it. However, it should be noted that this is only a single component of a broader multi-year communications and marketing strategy designed to increase Edmonton’s global presence.

• Enhanced Global Presence EEDC will actively promote and increase awareness about Edmonton’s unique strengths. Targeted

messaging based on needs, desires and attitudes will allow EEDC to tailor messaging to specifi c groups. Building on the “awareness campaign”, EEDC will leverage the solid investment by the City to build alignment between digital, travel and mainstream media.

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Shaw Conference Centre

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5 CORPORATE OVERVIEW

CORE BUSINESS UNIT PRIORITIES

Th e initiatives that support the corporate priorities, as outlined in the preceding section, are explained in further detail below. Th e following section provides an overview of the diff erent divisions and working groups within EEDC, and discusses all of the programs, including the priority initiatives, that will be undertaken by those units during 2010.

5.1 Shaw Conference Centre (SCC)

Th e SCC is a City owned asset managed by EEDC for the purpose of generating economic and social value. Th e SCC is one of the leading convention centres in Canada. In 2008, the SCC hosted 730 events and had in excess of 500,000 people pass through the building. Of these events, 47 were conventions that generated more than 145,000 room nights from out of town convention attendees. Convention attendees are the primary driver of economic impact for the SCC.

Th e social value the SCC contributes to the city, includes being a venue for local events, driving green initiatives and supporting local arts and culture. Th is role provides leadership in our community, and is also a diff erentiator in the market place. Th e SCC will continue to focus on activities that grow its value in the community. In 2010, the SCC will support the organization’s key priority areas by focusing on the following items:

Expanded Convention Space • Th e SCC’s economic impact has plateaued in recent years and the existing facility is encountering capacity

constraints. An external report has forecasted that over the next 20-years, the demand for convention space will signifi cantly exceed the capacity of the existing facility. In 2009 EEDC initiated a project to determine a long-term strategy for meeting future convention demand. Th is report will be presented to the Board and City Council in the 1st quarter of 2010.

• Pending the recommendation of the report, funding programs need to be pursued, and a formal development plan and business plan will be created.

In addition to the priority areas, the following are ongoing activities the Shaw Conference Centre will continue to pursue in 2010:

o Sell and host ongoing events, continue to maximize economic impact, social value, customer experience and building utilization, while continually driving effi ciencies.

o Attract events in key industry sectors, and then increase local awareness of events by highlighting the draw of knowledge and smart people.

o Co-sponsor bids with other Edmonton or Edmonton-Calgary corridor facilities.o Be a leader by continually developing new Green Initiatives, including Dine Alberta (a program to

encourage locally sourced inputs), composting, and upgrading to energy effi cient electrical and environmental equipment.

o Promote, initiate and host initiatives supporting the Arts & Culture community including culinary awards, hosting Arts & Culture, and continue with existing community events like “Everyone for Edmonton” and “Homeless Connect”.

o Work with other large convention/conference organizers in Edmonton to attract world class events.o Pursue effi ciencies to reduce energy usage and cost, specifi cally through salon level lighting controls and

HVAC renewal and exhibition hall lighting replacement.

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5.2 Tourism

Th e focus of Edmonton Tourism has traditionally been on the attraction of visitors, and the strengthening of local tourism partners. Tourism attraction activities are designed to establish Edmonton as a must see destination, drive tourism visitation and enhance the local economy. Attraction focuses on the 4 key areas of

• Meeting & Business Travel • Event Attraction• Leisure Travel and • Film Attraction

Th e tourism partnership focus is on supporting the industry with training, tools, facilitation and business generation. Th e tourism industry in Edmonton is recognized as a leader provincially and nationally for its co-operation and cohesion, and will continue to build on this strength. Going forward Edmonton will need to be equipped to serve a changing clientele and demand. An evolving focus of Tourism Development is to ensure that the local events and services align with changing demand expectations. Th is occurs through communication, training and advocacy. In 2010, Tourism will support the organization’s key priority areas by focusing on the following items:

Mobilize Tourism Industry • Demonstrate value for 600 industry partners by creating future opportunities for partner growth or

increasing revenues.• Leverage relationships to keep industry engaged with the issues, and mobilized toward cohesive action,

thus driving an imperative for action. EEDC will conduct one additional comprehensive partner survey.

• Develop the “meetings easy” service off ering to include a critical mass of local participants and drive adoption of the service as a way to stimulate visitor attraction. “Meetings easy” is a web-based system for rapidly providing conference and meeting planners with proposals from local venues and suppliers.

Tourism Development • Formalize role as the voice of the tourist: Collect, analyze, circulate visitor and partner opinions & survey

feedback to ensure we are focused appropriately.• Facilitate creation of new events and services based upon identifi ed opportunities. Ensure our service

portfolios develop and improve, giving tourists additional reasons to visit or stay longer.• Initiate 4 industry training sessions and support for new cultural training and awareness programs (eg.

serving Chinese visitors) that position Edmonton to capture evolving opportunities.• Leverage relationships, data and resources to support and pursue additional direct fl ights.• Update the visitor information centre (VIC) operating model to serve the evolving needs of visitors,

thereby keeping VICs relevant. • Assess the strategic placement of VIC locations to ensure maximum value, and develop opportunities

for creating incremental revenue. EEDC will double the revenue received from the sale of Edmonton attraction tickets.

In addition to the priority areas, the following are ongoing activities Tourism will continue to pursue in 2010: o Traditional visitor attraction (business, leisure, events and fi lm). o Address shifting global demand and strategic opportunities, like the 2010 Olympics. o Continue to present new avenues for global attraction. o Support Expo 2017 planning.

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5.3 Economic Development

Th e Economic Development group is primarily responsible for driving long-term sustainable income growth for Edmonton. Included within this mandate are activities related to diversity, innovation, labour, entrepreneurship, productivity, investment, retention and expansion. In this regard, relationships (regionally and abroad) are especially important tools for infl uencing and facilitating access to capital, markets and networks.

While the objective of income growth is a traditional platform for economic development, the explicit linkage to smart people and quality of life is a more contemporary line of thought, and one that has been embraced within the organization. Th e primary focus for economic development will be within the targeted sector areas previously identifi ed. Business attraction activities will progress selectively, and within targeted sectors. It is also anticipated that investment attraction will become a future priority for the organization. In 2010, Economic Development will support the organization’s key priority areas by focusing on the following items:

Business and Economic Leader’s Council • Communication of EEDC’s 2010 priority initiatives to 100 - 150 of the leaders in the region who

participate in the Business and Economic Leader’s Forum. Th ereby creating awareness and community engagement for EEDC’s plans.

• Explain how the initiatives contribute to EEDC’s strategic goals for the Edmonton region, and the rationale behind these goals.

• Solicit endorsement of EEDC’s strategy, and generate a commitment to support and participate in the initiatives.

Vibrant Urban Core • Champion the development of our downtown core.• Facilitate a big-picture blue-print for the urban core, including the supporting entities involved and

clearly depicting how various initiatives are related. • Identify downtown attributes and amenities that need to be incorporated to ensure growth. • Actively share the urban core blue-print with key stakeholders, and implicated projects (e.g. Arena;

Quarters; Capital Boulevard; River Valley; Infi ll; Amenities; etc.).

Port Alberta • Assume a management role for the Port Alberta initiative. Determine if there is a viable business model,

and enact an appropriate action plan. • In conjunction with Edmonton International Airport, develop business plans for air-freight cargo, and

the Port Alberta transportation/logistics strategy. Coordinate targeted air cargo attraction strategy driven off of the business case.

• Pursue and secure infrastructure funding.

17



Economic Diversifi cation • Concentrate on 3 sectors:

o Execute the strategies for the Financial Services and Advanced Technologies sector.o Create a long-term development strategy for the Life Sciences sector.o Support for the Energy and Advanced Education sectors will be provided as appropriate, with particular

importance given to areas where they may interrelate with other priority sectors. • Support the development, attraction and retention of smart people.• Create a high-level inventory and understanding of the organizations and business within the Edmonton

region. • Attract investment and development into the region.• Develop and maintain an inventory of potential investment opportunities in the Edmonton region, and

leverage this as a key tool for investment attraction.

In addition to the priority areas, the following are ongoing activities Economic Development will continue to pursue in 2010:

o Labour and productivity programs focused on industry and businesses. o Investment and business attraction activities will be conducted where appropriate.o Maintain relationships and circulate sector marketing packages to Alberta consulate offi ces abroad.

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5.4 Edmonton Research Park

Th e Edmonton Research Park (ERP) provides special-use lease space and entrepreneurial support services to Edmonton based ‘start-up’ technology companies. Covering 245 acres including the ARC and Southlands, the ERP is currently home to 55 technology focused businesses. Th is includes 37 start-up and early growth companies currently housed in 3 incubators or multi-tenant buildings owned by EEDC (Research Centre 1, Advanced Technology Centre and Biotechnology Business Development Centre). Th e focus of the ERP is on maximizing the potential success of businesses involved in technology commercialization – specifi cally in the areas of biotechnology (health and wellness), clean technology, nanotechnology, energy extraction, and process support services.

Th e business group also carries the responsibility for ensuring maximum eff ectiveness of TEC Edmonton, and a duty to assist in and/or eff ect increased collaboration amongst other technology commercialization support entities in the region. Th ese functions contribute to growing Edmonton’s knowledge based economy and innovation. Th e ERP is focused on activities to stimulate innovation and facilitate commercialization in Edmonton. In 2010, ERP will support the organization’s key priority areas by focusing on the following items:

Technology Commercialization Strategy • Refi nement of TEC Edmonton’s operating model, scope, and mandate to meet the changing

environment.• Secure the Province as a TEC Edmonton investor.• Secure representation in regional municipal technology commercialization strategy development, and

promote EEDC’s position within the evolving Provincial Technology Commercialization strategy and ensure alignment with Alberta Innovation.

• Actively communicate progress and concerns with EEDC’s stakeholders to ensure full engagement from a wider audience.

Research Park Development • Secure tenants, who operate within the focus areas, for the development of at least 3 of the 5 remaining

lots. Ensure all meet participation requirements, including incubator space and commitment to student programs.

• Advance the Research Park Expansion through the completion of the Southlands business case.• Obtain commitment from the Province to restrict the Southlands development for research purposes

In addition to the priority areas, the following are ongoing activities the Edmonton Research Park will continue to pursue in 2010:

o Eff ectively manage the Research Park and other existing assets for the purpose of stimulating innovation, including challenging and supporting tenants to progress through development stages.

o Maintain maximum occupancy levels within EEDC owned facilities; Research Centre 1, Advanced Technology Centre and Biotechnology Business Development Centre.

o Look for other institutions funding Advance Technology (ie. Helmhold Association, Germany).

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5.5 External Relations

External Relations is a supporting unit focused on fostering strong relationships between EEDC and our many stakeholders. Th is is achieved through the creation of mission-driven and market-focused strategies and tactics that build EEDC’s value, further its vision, and raise awareness of Edmonton. Th e group consists of Marketing, Communications and Strategic Relations. Th e External Relations function will focus on activities to support the other business units and build external profi le. In 2010, External Relations will support the organization’s key priority areas by focusing on the following items:

Quality of Life • Prioritize input from the Business and Economic Leader’s Council and sector lunches to determine

community concerns, and initiate action plans to address 2 quality of life issues identifi ed.• Undertake initiatives, based on community priorities and EEDC’s ability to eff ect change.

Marketing Strategy • Focus on the development of a digital media strategy that encompasses but is not restricted to social

media. Edmonton’s “Awareness Campaign” is one tool within the broader digital strategy. Th is digital media strategy will integrate into EEDC’s overall marketing strategy.

• Update and maintain EEDC web sites with a consistent look, feel, and message.

Enhanced Global Presence • Create an advisory committee of prominent industry personnel. Th e purpose of the committee will be

to endorse and provide advice on the long-term (multi-year) marketing and communications strategy designed to enhance the awareness of Edmonton globally.

• Create an encompassing media/marketing strategy that ensures alignment of mainstream, travel and digital media.

In addition to the priority areas, the following are ongoing activities that the External Relations group will continue to pursue in 2010:

o Harmonize external messaging to ensure maximum impact and consistent details.o Promote the sustainability of Arts & Culture by utilizing EEDC assets.o Timely and relevant Annual / Quarterly Reports.o Internal communications.

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5.6 CFO and Administration

Finance and Accounting (F&A) is responsible for maintaining the accounts of the company in a manner that supports, and is consistent with Generally Accepted Accounting Principles (GAAP). F&A is also responsible for ensuring appropriate internal controls and policies are defi ned and adhered to. Th e focus in 2010 is on creating more formal system automation and mechanizing points of internal control. Th is includes the delivery of new inventory and purchasing systems in 2010.

In addition to providing leadership in the execution of certain annual and periodic processes (the annual budgeting process for example), F&A sees itself as a support service to the other Divisions/Departments of the company and in 2010 will strive to refi ne processes and content to best meet the needs of these customers.

Information Technology is responsible for the oversight, planning and administration of all of EEDC’s hardware, software and communications requirements at its four separate and distinct sites (Corporate offi ce, SCC, Research Park and Gateway Park).

In addition to supporting business unit initiatives in 2010, the focus for IT is on network reliability with programs to standardize hardware and virtualize servers intended for next year.

Knowledge Management is responsible for EEDC’s internal strategic and corporate planning processes; economic analysis, research, and where benefi cial, assisting EEDC divisions in the execution of programs and initiatives.

5.7 Human Resources

From a Human Resources standpoint, eff orts will continue on ingraining EEDC’s values and ensuring strong employee engagement. Th e group will also continue to support to all divisions with performance management tools, employee development, total rewards initiatives, strategic recruitment and regular measurement of employee engagement. Special focus for 2010 will be on managerial skills training for all supervisory staff and the identifi cation and execution of competency improvements across the organization.

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Edmonton Research Park

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6 FINANCIAL PLAN

6.1 Operating Budget

Th e EEDC fi nancial plan for 2010 represents the dollars required to complete the initiatives identifi ed in this business plan. Th e proposed 2010 budget includes revenue of $22,314 thousand, expenses of $35,609 thousand and tax levy funding of $12,705. EEDC’s budget for revenue, expenses and capital is approved by the Board of Directors on an annual basis. While the Board approves the overall budget, the City allocates and approves the amount of tax levy funding that EEDC receives each year. Since approximately one-third of the expenses of the organization are funded by the tax levy; the City of Edmonton’s annual budget process is a critical component of the budget cycle. For 2010 the City of Edmonton’s operating guidelines are to limit the tax levy funding for all departments, boards and agencies to a 3% increase. Th is means the tax levy funding for EEDC will be $12,705 thousand or an increase of $369 thousand from 2009. Capping the increase to 3% for 2010 obviously creates challenges for the organization; however, EEDC recognizes the need to be fi scally responsible given the current economic downturn.

In order to arrive at a budget for 2010 which limits the tax levy to the 3% increase, EEDC looked at ways to increase revenue and/or cost saving initiatives while still accomplishing the initiatives and goals required for the organization to achieve our overall strategic vision. All opportunities to achieve cost savings or revenue increases have been reviewed with a view to minimize any and all risks to EEDC.

While both opportunities are included in the budget, it is diffi cult to increase revenue for EEDC as both the Shaw and the EEDC buildings at the Research Park are near or at capacity. Th erefore, more of the focus is on cost savings and effi ciencies in the short term. Many of these savings initiatives were previously identifi ed and underway in the organization; given the 1.2% reduction to the tax levy funding in 2009 for EEDC from $12,485 thousand to $12,336 thousand. Th e initiatives identifi ed in the budget process are aligned with the business plan. Details of the revenue and expense opportunities included in the budget are noted below.

2009 APPROVED BUDGET 2010 PROPOSED BUDGET

Econ Dev. Econ Dev. to Tourism Tourism 2010 ($’000’S) & ERP SCC Total & ERP SCC Total Change

REVENUE AND TRANSFERS 7,895 15,041 22,936 6,705 15,609 22,314 (622)

EXPENDITURES Personnel Costs 3,961 9,248 13,209 4,425 9,557 13,982 (773) Operating Costs 8,977 6,420 15,397 7,672 6,929 14,601 796 TEC Edmonton 1,000 - 1,000 1,000 - 1,000 - Interest Expense 253 121 374 247 103 350 24 Amortization & depreciation 986 - 986 1,082 - 1,082 (96) Overhead allocation 2,840 1,584 4,424 2,900 1,694 4,594 (170)

Utilization of reserves - 400 400 - - - 400

Total 18,017 17,773 35,790 17,326 18,283 35,609 181

TAX LEVY 9,604 2,732 12,336 10,031 2,674 12,705 369

NET DEFICIT (518) - (518) (590) - (590) (72)

2009 Econ Dev. Econ Dev. to Tourism Tourism 2010

& ERP SCC Total & ERP SCC Total Change

Personnel Costs 3,961 9,248 13,209 4,425 9,557 13,982 (773) Operating Costs 8,977 6,420 15,397 7,672 6,929 14,601 796 TEC Edmonton 1,000 - 1,000 1,000 - 1,000 - Interest Expense 253 121 374 247 103 350 24 Amortization & depreciation 986 - 986 1,082 - 1,082 (96) Overhead allocation 2,840 1,584 4,424 2,900 1,694 4,594 (170)


2009 APPROVED BUDGET 2010 PROPOSED BUDGET

Econ Dev. Econ Dev. to Tourism Tourism 2010


7,895 15,041 22,936 6,705 15,609 22,314 (622)



18,017 17,773 35,790 17,326 18,283 35,609 181

9,604 2,732 12,336 10,031 2,674 12,705 369

(518) - (518) (590) - (590) (72)

Econ Dev. Econ Dev. to Tourism Tourism 2010


7,895 15,041 22,936 6,705 15,609 22,314 (622)



18,017 17,773 35,790 17,326 18,283 35,609 181

9,604 2,732 12,336 10,031 2,674 12,705 369

(518) - (518) (590) - (590) (72)

EEDC OPERATING BUDGET 2010

Note: 2009 to 2010 change - (unfavourable)/favourable

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Revenue Opportunities

Strategies in this category include revenue maximization and greater use of networks and partners. Many of these opportunities were previously included in the 2009 budget and business plan and continue into 2010. Opportunities in this area and included in the budget are:

• Fill, as feasible, any remaining tenant vacancies in the Biotechnology Business Development Centre.

• Streamlining of the Biotech leasing program to get approvals for participation in the program in a quicker manner.

• Th rough the coordination of information and continued communication with partners such as the Destination Marketing Fund and the Edmonton Tourism Destination Region; Edmonton Tourism will look for cross funding opportunities in 2010.

• Business development opportunities for the Visitor Information Centers from a sales and physical location perspective.

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Cost Savings

Strategies in this category include operating cost savings, internal operational effi ciencies, service level changes and new internal business models. Many of these opportunities were previously included in the prior year budget and continue into 2010. Th e implementation of some of these initiatives has initial upfront costs but will have incremental savings in the long-term. Opportunities in this area and included in the budget are:

• A number of software packages currently under review will provide for integrated purchasing, inventory and cost controls throughout our food and beverage operations at the Shaw. Preliminary estimates indicate that production costs could be reduced overall by between one and two percentage points on more than $2,000 thousand of product costs. In addition, the elimination of some repetitive clerical tasks will allow for personnel to be reassigned to work of higher value.

• Th e ongoing removal of obsolete light fi xtures and HVAC equipment with up to date high effi ciency replacements at the Shaw. Renovations in Salons 1, 2 and 3 at the Shaw include these features plus state of the art lighting controls activated manually or by motion and/or audio detectors to minimize the time lights are left on in vacant salons. Th e HVAC mixing boxes in all three salons have been replaced with digitally controlled units that reduce power consumption and allow for more precise temperature controls.

• Th e main light fi xtures in Halls B & C at the Shaw will also be replaced later this year or very early in 2010. Th is will reduce the power requirement by a minimum of 50% and allow for improved lighting control.

• Given the economic downturn, hosting and travel costs will be minimized as appropriate.• Where feasible cross training of staff will be encouraged, especially where vacancies exist today, such as

in Economic Development. Consultants to be used where economically viable.• Continued reduction of hours at the Visitor Information Centers.• Centralization of all marketing, communication and event planning across the organization.

Communications synergies will be achieved by consolidating the areas of media relations, travel media relations, corporate communications-activity and the development of select social media. Marketing synergies will be achieved by consolidating marketing-related activity across the organization. Results will include more cohesion in deliverables, consistency in messaging and will allow leveraging between functions and divisions.

• Consolidate delivery of web-related functions. Th is effi ciency has begun and will continue. Results to-date shows continuity in style, navigation and overall guidelines. Processes continue to be developed for integration across the organization with a central web offi ce to ensure consistency.

• Greater use of social media at the Research Park for advertising, and linking tenants to technology information.

• Consolidation of corporate credit cards.• Information Technology purchasing power will continue to leverage City of Edmonton, where feasible

(i.e. Cell phone plan).• Research Park in-house information technology support. Leverage internal staff for tenant issues which

decrease costs and increase synergies.

Regardless of the budget timeline for 2010, EEDC will continue to review cost and revenue initiatives to improve the overall effi ciency and eff ectiveness of the organization. Complete details of the 2010 budget are contained in Appendix B.


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6.2 Capital Budget

Th e 2009 City of Edmonton capital budget process approved funding for capital programs for the period 2009-2011. Th e details of the capital requests by EEDC and the subsequent approvals for this period are noted in Appendix C.

Capital spending for EEDC is classifi ed into three categories:

1. Assets owned by EEDC fi nanced with internal capital funds – i.e. tenant and building improvements at the Research Park.

2. Assets owned or operated by EEDC with capital funds fi nanced by the City – i.e. the Biotechnology Business Development Centre (BBDC).

3. Assets owned by the City and fi nanced by the City – i.e. the Shaw Conference Centre (SCC) and Visitor Information Centre.

Th e capital requests for 2010 fall under all three of the categories noted above.

Th e SCC is over 25 years old and on-going capital maintenance is required to keep the asset operating eff ectively and allow it to be competitive with other Western Canadian convention centres. Th e City recognized the need for on-going capital maintenance funding last year and approved $1.6 million for each of the years 2009-2011 in the budget cycle. All of the maintenance projects for the SCC are scheduled around convention and event dates; therefore, there is some movement in the years the dollars will be spent but all funds approved are anticipated to be consumed over this three year period. Approximately $1,750 thousand is expected to be spent in 2010. Th e longer term requirements for the potential expansion of the SCC have not been included in the requests, noted in Appendix C, as the development plan is currently underway and alternative funding sources will be sought for a project of this size and magnitude.

Th e total capital funding for the BBDC of $14.0 million was approved several years ago and the work to complete the building will continue into 2010. Additionally, upgrades to the Research Centre One building are required in order to attract new tenants for vacated space. Th ese leasehold improvements in 2010 will either be self funded by EEDC or paid by the new tenants. Spending in 2010 is forecasted to be $1,500 thousand for the BBDC and $300 thousand at Research Centre One.

For the years beyond 2010, several capital requests have been noted as possible requirements, however, these items are currently unfunded and the timing of the expenditures is still under review. Th ese unfunded projects include the development of the lands south of the Research Park, parking lot paving and building maintenance upgrades at the Research Park and the possible location move of the Visitor Information Centre.

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EEDC Priority Items for 2010 Success Indicator

Leadership

1. Community Engagement Business Leadership Council 100-150 community leaders supporting strategy

Mobilize Tourism Industry 125 meeting’s easy supporters

2. Leader and catalyst for change Vibrant Urban Core Investment $ attracted

Expanded Convention Space Submit SCC development plan to City Council

Innovation

3. Foster Innovation Technology Commercialization Strategy Secure Province as TEC Edmonton investor

Research Park Development 3 of the 5 remaining lots committed by fourth quarter 2010

4. Grow Key Assets & Industries Port Alberta Port Alberta business case approved by stakeholders

Economic Diversifi cation Life Sciences Strategy developed Execute F.I.R.E. and Advance Technology Strategies

Recognition

5. Global Appeal Tourism Development 4 ADS courses

Quality of Life 2 business and economic leader’s council initiatives undertaken

6. Global Recognition Marketing Strategy Marketing and digital strategy completed and 450k hits to website

Increased Global Presence 10% increase in value of earned media

APPENDIX A - Indicators of Success

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APPENDIX B - EEDC Statement of Operations

Edmonton Economic Development CorporationBudget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars)

Annual

2010 2009 % 2010 Budget 2009 2008 Budget Forecast - ‘09 Forecast Budget Prior Year

Revenue City of Edmonton tax levy funding 12,705 12,336 103% 12,336 12,485 Convention Centre food, beverage 15,609 15,043 104% 14,641 15,283 and rental revenue Other external revenue 6,705 9,324 72% 7,895 15,042 Transfer from reserves - - 400 -

35,019 36,703 95% 35,272 42,810

Expenses Salaries and related costs - ERT 4,425 3,849 115% 3,961 3,726 Salaries and related costs - SCC 9,557 9,179 104% 9,248 8,729 Salaries and related costs - Corp OH 2,316 2,311 100% 2,312 1,814 Operating and program costs 15,272 17,575 87% 15,971 24,353 Cost of food and beverage sold 2,207 2,140 103% 2,137 2,232 Capital maintenance 400 300 133% 400 336 Amortization of property and equipment 1,082 986 110% 986 833 Utilization of reserves - - 400 - Interest on long-term debt 350 374 94% 375 342

35,609 36,714 97% 35,790 42,365

Net operating surplus (defi cit) for the period (590) (11) (518) 445

Cash Flow for the period Add back depreciation & amortization 1,082 986 986 833 Less fi nancing payments (492) (468) (468) (414)

Cash Flow for the period - 507 - 864

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Edmonton Economic Development CorporationDivisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars)

SHAW CONFERENCE CENTRE Annual


Revenue Convention Centre food, beverage 15,609 15,043 104% 14,641 15,283 and rental revenue Transfer from reserves - - 400 -

Direct Expenses Operating expenses 16,086 15,493 104% 15,268 15,396

Gross Margin (477) (450) 106% (227) (113)

Other Expenses Interest expense 103 121 85% 121 137

Utilization of reserves - - 400 - Property and equipment 400 300 133% 400 336

503 421 119% 921 474

Net operating surplus (defi cit) from operations (980) (871) 113% (1,148) (587)

Corporate overhead charge 1,694 1,612 105% 1,584 1,433

Net operating surplus (defi cit) (2,674) (2,483) 108% (2,732) (2,020) before COE funding

City of Edmonton tax levy funding 2,674 2,732 98% 2,732 2,709

Net operating surplus (defi cit) for the period - 249 - 689

29



Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars)

ECONOMIC DEVELOPMENT, TOURISM, Annual


Revenue External funding 6,705 9,324 72% 7,895 15,042

Direct Expenses Operating and program expenses 13,097 15,058 87% 13,938 21,615

Operating Margin (Loss) from programs (6,392) (5,734) 111% (6,043) (6,573)

Other Expenses Depreciation and amortization 1,082 986 110% 986 833 Interest expense 247 253 98% 253 205

Net operating surplus (defi cit) from programs (7,721) (6,973) 111% (7,282) (7,611)




Net operating surplus (defi cit) for the period (590) (260) (518) (244)

RESEARCH PARK

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Edmonton Economic Development Corporation Divisional Budget Statement of Operations For the period ending Dec. 31, 2010 (in thousands of dollars) ECONOMIC DEVELOPMENT Annual


RevenueExternal funding 450 809 56% 900 1,620



Other Expenses Depreciation and amortization - - - - Interest expense - - - -



Net operating surplus (defi cit) (4,177) (3,458) 121% (4,024) (3,644)before COE funding


Net operating surplus (defi cit) for the period - 566 - 380

31




TOURISM Annual


Revenue External funding 3,738 6,021 62% 4,562 11,295



Other Expenses Depreciation and amortization - - - - Interest expense - - - -

Net operating surplus (defi cit) (2,875) (2,665) 108% (2,717) (2,978) from programs




Net operating surplus (defi cit) for the period - 32 - (183)

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RESEARCH PARK Annual


RevenueExternal funding - Research Park 2,517 2,494 101% 2,434 2,127

External funding - Dell and TEC - - 0% - -

Direct ExpensesOperating and program expenses - Research Park 2,257 2,501 90% 2,107 2,011

External partnership costs - Dell and TEC 1,000 1,000 100% 1,000 1,131

Operating Margin (Loss) from programs (740) (1,007) 74% (673) (1,015)

Other Expenses Depreciation and amortization 1,082 986 110% 986 833 Interest expense 247 253 98% 253 205


Corporate overhead charge 360 347 104% 341 284


City of Edmonton tax levy funding - Research Park 839 735 114% 735 657 City of Edmonton tax levy funding - Dell and TEC 1,000 1,000 100% 1,000 1,240

Net operating surplus (defi cit) for the period (590) (858) (518) (440)

33



APPENDIX C - 2009 - 2013 Capital Program

Edmonton Economic Development Corporation 2009-2013 Capital Program (in thousands of dollars)

(Budget) (Forecast) 2010-2013 2009 2009 2010 2011 2012 2013 Total

05-99-3002 Biotechnology Business 1,237 900 1,500 337 1,837 Development Centre - New projects for wet lab

and misc upgrades

08-99-3003 Advanced Technology Centre - 1,200 1,200 - Parking Lot Paving

05-99-3004 Research Centre 1 500 500 300 300 600 - Building Upgrades

07-99-3005 Advanced Technology Centre 2,000 2,000 - Building Upgrades

08-99-3006 Research Park - Southlands* - 15,000 12,000 12,000 39,000 - Likely won’t commence until

2011 at the earliest

08-99-3007 Research Park - 4,000 4,000 - Joint Venture

08-99-3008 Gateway Park - Replacement 2,000 2,000 - Potential upgrade or move

06-99-0004 Shaw Major Building Upgrades 1,650 1,550 1,750 1,500 1,957 2,524 7,731

3,387 2,950 3,550 17,137 15,957 21,724 58,368

* - assume servicing costs of 100 acres would be included in COE budget

- approved by City of Edmonton

(Budget) (Forecast) 2010-2013 2009 2009 2010 2011 2012 2013 Total

05-99-3002 Biotechnology Business 1,237 900 1,500 337 1,837 Development Centre

08-99-3003 Advanced Technology Centre - 1,200 1,200

05-99-3004 Research Centre 1 500 500 300 300 600

07-99-3005 Advanced Technology Centre 2,000 2,000

08-99-3006 Research Park - Southlands* - 15,000 12,000 12,000 39,000

08-99-3007 Research Park - 4,000 4,000

08-99-3008 Gateway Park - Replacement 2,000 2,000

06-99-0004 Shaw Major Building Upgrades 1,650 1,550 1,750 1,500 1,957 2,524 7,731

3,387 2,950 3,550 17,137 15,957 21,724 58,368

34

Business Plan 2010

Documents

Transcript of Business Plan 2010