No Looking Back – There Is No Place In Canada Like Niagara

A View by Port Colborne, Ontario Mayor Vance Badawey

There has been a great deal of healthy discussion with respect to Economic Development within the Region of Niagara. My intent is to not get caught up in looking back at what was, rather, to move forward to what will be.

To achieve economic recovery we must all contribute, and be focused on, a Regional economic strategy, steering the economy in a direction which builds on our strengths.

“There exists a myriad of valuable resources throughout Niagara.
It’s time to bring them all together and move forward.”

To accomplish this, it is critical that all 12 municipalities, the Region, education institutions, organizations and the private sector work together and contribute to a strategy with NIAGARA in mind versus a parochial mindset. We have a great deal to offer collectively versus individually. There exists a myriad of valuable resources throughout Niagara. It’s time to bring them all together and move forward.
It has already begun.
The region’s five Economic Development Offices, along with NEDCO, regional organizations and the private sector have been working diligently on many initiatives.

Ø Niagara Industrial Association – Niagara Industrial Buyer Seller Forum
Ø Niagara Development Corridor
Ø Ports Niagara
Ø Industrial Lands Analysis
Ø Region of Niagara Public Domain Incentive Program
Ø New online information tools added to municipal websites
Ø Targeting wind energy investment
Ø Development of Niagara’s bio-economy industry Development Opportunities Report
Ø Partnering in the Ontario Technology Corridor
Ø NEDCO developed “micro-sites” for the 7 municipalities that do not have economic development staff
Ø The Region has reduced industrial taxes and held the industrial development charge from increasing in recent years
Ø The Region is working with the province to accelerate the reduction of the Industrial Business Education Tax
Ø Development of the Niagara Region Culture Plan
Ø Partnership with the Niagara Sport Commission – Sports Tourism
Ø Attendance at World conferences in 2010 – Niagara standing together to collectively ensure our message gets out:
– Bio International Convention, Chicago
– World Congress on Industrial Biotechnology & Bioprocessing, Washington
– Continental 1 – Trade Corridors of the Future, Buffalo
– Windpower 2010 Conference & Exhibition, Dallas
– World Energy Congress, Montreal
– Canadian Wind Energy Alliance Annual Conference, Montreal
– Canadian Solar Industries Association Annual Conference, Toronto

All municipalities are currently investing in Community Improvement Plans (CIP’s) to address aged areas of Niagara’s communities. No different than your own home or businesses, the intent is to bring these local destinations up to current standards, including the existing infrastructure.

It is an opportunity by (municipal) government to contribute to economic recovery and growth by pro-actively participating in enhancing a level of confidence to existing and future investors to these particular areas of our communities, as well as simply cleaning up otherwise depressed looking areas of our communities.

A “do nothing” alternative is simply not an option for all communities that are striving to offer more for our business sector.

Since 2003 we have worked together to offer “Smarter Niagara” incentive programs that encouraged development of certain types in certain locations throughout the region. Under provincial legislation, financial incentives can only be accessed by our business community through the establishment of a “Community Improvement Plan.” If a business is within a “Community Improvement Plan” area they are entitled to financial incentives, as well as taking advantage of area specific improvements.

These CIP’s are also focusing on Brownfield re-development, bringing back into productivity old, stagnant industrial areas of our region that currently have infrastructure capacities.
These projects have been jointly funded by the Region, province, feds and our communities.

Under the province’s Growth Plan, the Region of Niagara has been designated as a Gateway Economic Zone & Centre – the only such designation in the province of Ontario.

We are now working together toward implementing strategies around these designations.

Our communities, the Region and province have recognized that there is a need to steer the economy in a direction which favours our strengths in terms of Niagara’s location as a gateway for trade.

Based on Niagara’s Growth Management Strategy, Niagara is expected to have a population of 545,000 and employment of 248,000 by 2031 (Current Population is 427,000). Based on this planned growth we have been working together to ensure that our financial, economic, and infrastructure plans are updated to support this level of growth, such as those areas we have targeted for improvements.

The Gateway Economic Zone & Centre Strategy is a major component of this planning effort. Bringing the strategy to life – “plans into action” has been our focus in 2010 and will continue through 2011.

A number of themes where action has been taken or is in process include:
Ø Transportation and Transit Improvements
Ø Brownfield and Downtowns Revitalization – Community Improvement Plans
Ø Commercial and Industrial land development
Ø Attraction of new investment in key sectors
Ø The key role of Agriculture and Culture in our economy
Ø Strengthening our key tourism sector
Ø The benefit of targeted incentive programs

The introduction of GO service in Niagara has been important for improving access for visitors. Once visitors from all over the province and beyond arrive, we need to make it easy for them to get around this diverse Region – getting to attractions/destinations that are spread across Niagara, hence the need for Inter-Municipal Transit.

“The point is, we are no longer a destination of individual communities – we are a destination of 427,000 (Niagara).”

Simply put, we are expanding our market exposure and must be prepared to offer a quality destination for people to live, visit, work and play. The point is, we are no longer a destination of individual communities – we are a destination of 427,000 (Niagara).

Regional transit authorities are working together to make improvements to regional transit networks. We have begun to implement improvements which will enhance the current system(s), such as the triangle inter-municipal service (St. Catharines, Niagara Falls, Welland) that enhances the movement of people to the feeder areas such as to Port Colborne and Fort Erie.

This will add to the ability for those residing in Niagara to travel throughout the region, accessing work, healthcare and education destinations.
Additional, significant investments have been made across our region with respect to infrastructure needed to make our employment lands more attractive to investors.

In order for economic diversification to be effective, the supply of employment lands needs to be guaranteed for the future.

Therefore, we are working together to protect serviced and attractive employment lands for future growth and solidify linkages between the educational sector and the private sector that will ensure that labour requirements are met and an entrepreneurial and innovative environment continues to grow.

These types of investments have translated into opportunities for investors through:
Ø Wind Energy Manufacturing Park (Cluster)
Ø Hwy 140 – Canal Corridor Industrial Corridor
Ø Bio-Fuel opportunities
Ø Bio-Food opportunities
Ø Food Processing
Ø Steel and Metal Manufacturing and Fabricating
Ø Solar Farm development

In tandem with the Growth Management Strategy, the Region of Niagara, shoulder to shoulder with partner municipalities, are moving forward to establish a Centre of Excellence for integrated multi-modal assets (road, rail, marine and air) and a major area through which cross border traffic and goods movement continues to grow.

This Centre of Excellence aligns well with existing road and rail initiatives in the United States such as the New York State Rail Plan and the Continental 1 Road Corridor (Toronto to Miami).

Smart spending on infrastructure, based on targeting, will be a key in providing effective connections with Global markets. Transportation dollars should be spent efficiently and effectively, according to investment priority with an overall goal to strengthen exportation, especially with the region’s close proximity to North American markets.

We have worked together to highlight to upper levels of government, concrete examples of local work being undertaken in support of Niagara’s Gateway Economic Zone & Center such as:
Ø South Niagara East-West Arterial Corridor – 1st Link of the Mid Peninsula Trade Corridor
Ø Transportation related studies including assessment of Regional transit needs
Ø Ports Niagara study completed
Ø Planned infrastructure projects
Ø Investigation of the application of policy planning tools such as the Community Improvement Plan (CIP) to the Gateway Economic Zone and Centre
Ø Ongoing efforts highlighting the broader Provincial and Federal economic benefits to a successful Gateway Economic Zone and Centre in Niagara

If any one of Niagara’s communities is successful, Niagara is successful, Ontario is successful and Canada is successful – this continues to be a theme of our Niagara Week discussions at both Queen’s Park and in Ottawa.

I would like to emphasize the importance of incentives. Similar to the financial incentives that the Region and our communities use to promote smart growth (e.g. Tax Increment Financing for Brownfield redevelopment or façade restoration), we are working together, looking at how to encourage investment in initiatives like green technologies, value-added manufacturing, port infrastructure, and more.

These target incentives would form the key tools that would be applied within a broader Niagara Gateway Community Improvement Plan – the legislative framework for the application of any approved incentives. We are targeting completion of this project for Spring 2011.

An additional incentive that is critical for Niagara’s economic future is the establishment of a “Foreign Trade Zone.”

These are specially designated areas with tax incentives for business operations. Normally linked to international airports, major sea ports, inland ports and border frontiers, these designated sites enable companies to land, handle and re-export goods without paying duty or custom taxes.

Globalization is making Foreign Trade Zones more important than ever. Importing and exporting businesses are the most obvious businesses to use Foreign Trade Zones.

Multinational corporations tend to participate in the program most frequently but small-and medium-sized manufacturers have found the program to be beneficial for their trade-related activities.

These types of Zones are well established in the U.S. through Federal and State policy and regulation. There is currently no similar structure in place on the Canadian side.

We believe that Niagara’s Gateway initiatives can be a key contributor to the development of such a framework in Canada. Also given the programs already in place across the river, we must work together to achieve as much consistency as possible within a bi-national region.

 

We are confident that this direction is consistent with existing federal gateway initiatives. In addition, last year’s federal budget outlined a direction to make Canada a Tariff Free Zone.
We believe that Niagara is well positioned, through the Gateway Economic Zone & Centre designations to be a national leader in contributing to this objective, strengthening the bi-national region overall.

Last year we invited stakeholders from various sectors on both sides of the Border to a workshop. The purpose was to expand our partnership by engaging them in a sharing of ideas – looking at what is working well and what is in need of attention.

More than 75 people attended the workshop and we have had further discussions with senior provincial staff. The meeting highlighted opportunities to coordinate efforts, particularly where already established tools and incentives are in place on the US side.

The Province has expressed an interest in working with us to cooperatively bring forward the case. We are working closely with the appropriate Ministers and Deputy Ministers to advance this work.

Our economic efforts overall will undoubtedly require participation from senior government (both in terms of regulatory/policy change and infrastructure investments), and must be relevant to Niagara’s private sector.
The Gateway Economic Zone & Centre designation is unique to Niagara, recognizing our mix of location and essential (yet underutilized) assets already in place.

Our economic future will, in many ways, depend on how we grasp this opportunity now by setting the right climate for investment and growth.
We cannot be content and rely on what we had – how has that been working out for us? We must work to create new economy that starts with building/updating on our strengths.

In September 2010, the Brookings Institution released a report entitled The Next Economy: Economic Recovery and Transformation in the Great Lakes Region.

This report leans heavily toward everything we have been working toward as mentioned earlier, including the fact that we must work together to right-size communities, particularly for older industrial cities within the Great Lakes region which have seen significant job and population loss.

It states that focus should be given to our strengths, establishing strategies that address long term land use and economic development goals.

Promoting a focus on expanding these economic opportunities is clearly outlined as a strategic opportunity with the Niagara Economic Zone & Centre and growth strategies.

As you can see Niagara is moving aggressively forward with tangible strategies. Now we must come together with structure.

Chairman Gary Burroughs has begun a process that will solidify a structure for economic development between the Region, all member municipalities, education institutions, organizations and the private sector.
Promoting an all inclusive process that includes all of NIAGARA is critical to our success at executing these strategies. I personally have confidence in the Chairman’s leadership to move this forward swiftly.

WE MUST THINK ABOUT THE ECONOMIC FUTURE OF ALL OF NIAGARA, not just a few, in turn confirming our effort to speak and work as a one NIAGARA voice toward a successful economic recovery.

We have a great deal to offer. There is no place in Canada like Niagara, however, it is not widely known. The opportunity is now for Niagara to package a message and move forward with a marketing strategy, aggressively getting the word out that there is no place in Canada that offers as much diverse investment opportunities as those that exist in Niagara.
The time is now!!!

Vance Badawey is the mayor of Port Colborne, Ontario and a life-long resident of the greater Niagara region. We welcome his commentary just as we do those of other political leaders who care to share their views with Niagara At Large readers.

(Visit Niagara At Large at www.niagaraatlarge.com for more news and commentary on matters of interest and concern to residents in our greater Niagara region and beyond.)