Appendix 1

DRAFT
MEMORANDUM OF AGREEMENT
to establish INVEST BC

A partnership to promote economic development and growth in British Columbia by attracting and retaining international corporate investment

made this ______day of ___________________, 2001

AMONG

The signatories to this agreement as listed below which include:

The Government of Canada represented by departments and/or agencies of the Crown

The Province of British Columbia represented by ministries of the Crown, its corporations and agencies

Municipalities of British Columbia represented by individual communities and/or regional governments

Economic Development Agencies of British Columbia represented by the community economic development agencies, corporations and associations within the Province of British Columbia

The business community of British Columbia represented by corporations, individuals and industry associations

WHEREAS
IT IS AGREED THAT:
· British Columbia must attract and retain international corporate investment by:

o Promoting awareness and enhancing access to British Columbia as a good place to invest among investment decision makers and influencers in North America and around the world
o Competing effectively with other jurisdictions in Canada and the United States by using the latest techniques and technologies
o Designing strategies and maintaining a portfolio of programs and campaigns to reach international investors
o Utilizing as many of the resources and skills available throughout the province from institutions, agencies and corporations in a coordinated and collaborative manner
o Participating selectively in national and international initiatives to attract foreign direct investment to Canada

AND THAT:

· The parties to this agreement

o Have a mutual interest in the growth and economic prosperity of British Columbia

o Have resources which can be used more effectively in a coordinated and collaborative approach to investment attraction

o See benefit in pooling resources involved in economic development of the province

o Identify a need for a public/private partnership to undertake activities to attract and retain international corporate investment

THIS AGREEMENT THEREFORE

Sets out in general terms the guidelines by which the parties will create a partnership in the form of an independent corporation to be called Invest BC and through which the parties agree that:

· With respect to the purpose of the corporation

o Invest BC is a federal, provincial, municipal and industry partnership created to promote economic development throughout British Columbia by attracting and retaining international corporate investment in all regions of the province.
o The aims and goals of the organization are described in the Terms of Reference for the corporation (Appendix I)

· With respect to the form of the corporation

o Invest BC is to be established as a not-for-profit corporation under the Societies Act of British Columbia

o Partners in the corporation will include those who are the founding signatories to this agreement, those who subsequently sign and those who meet all the conditions for membership as outlined in the constitution of the corporation. (see governance of the corporation below)

o Partnership entitles members to benefits which accrue to the corporation including participation in marketing activities and governance of the organization

o The term for the initial commitment by partners/members to the corporation is to be for the first three budget years of the organization

· With respect to governance of the corporation

o The affairs of the organization will be directed by a Management Board of not more than 12 persons

o The Board will be headed by a Chair and Vice-Chair selected by board members from the private sector and municipal member organizations

(It is proposed that, the federal and provincial governments have not more than two members each on the Board and that the first Board be selected by a committee headed by the Province from a list of nominees submitted by signatories to this agreement)

o The Board will be responsible for creating a constitution for the corporation which is to include

· Conditions for membership
· Governance of the corporation
· Operations and participation in the Board of Management
· Approval of the business plan

o Day to day operations of the corporation will be carried out by a Managing Director contracted by the Management Board and such supporting staff as deemed necessary by the Board

· Support and professional staff can be engaged by the corporation through contractual arrangements with independent contractors or through assignment of staff from partner organizations

o A schedule of partnership fees will be developed by the Management Board for membership in the corporation. (Appendix II)

· With respect to the activities of the corporation

o The Board will conduct the activities of the corporation in accordance with a three year business plan to be developed as a first order of business and is to include

· Business activities of the corporation (Appendix III)
· Budget (Appendix IV)
· Deliverables
· Performance targets / assessments

o An outline of the content and schedule of an annual progress review for submission to members parent organizations

(Note: Appendices I through IV have been prepared as examples and/or models for the purposes of this draft agreement, The ultimate setting of these items would be the responsibility of the Management Board)

FURTHERMORE

It is recognized that participation in this Agreement and the activities under this Agreement does not relieve government organizations from the conduct of duties and responsibilities with regard to investment attraction, recruitment or promotion as may be set out in legislation.

Terms Of Reference

The overall goal of Invest BC is to promote economic development and growth in British Columbia by attracting and retaining international corporate investment in the province.

To achieve this Invest BC will undertake activities and put into place systems and processes to raise awareness of British Columbia as a good place to invest, market the Province externally and furnish relevant information to the North American and worldwide investor community.

The corporation will collaborate and complement the activities of Canada and British Columbia and other organizations engaged in investment promotion in the communities and regions of British Columbia

The activities of the Corporation are to be directed by the Management Board and are to:

· Raise awareness and the profile of British Columbia among investor community as a good place to invest

o Develop an investment attraction strategy and message
o Develop an awareness program
o Create and maintain a comprehensive BC Investment website
o Enhance and maintain community investment databases and profiles
o Develop a brand signature for British Columbia

· Attract international investment

o Identify target sectors and companies
o Create and implement programs to develop relationships with target prospects
o Develop relationships with key site selectors and business investment decision influencers

· Promote and enhance community partnerships

o Conduct regional analysis
o Sponsor regional investment forums
o Establish governance procedures for communities to maintain community databases

· Encourage investment

o Collaborate with provincial and federal investment agencies in dealing with prospective or strategic investors and conducting detailed investment analysis

· Conduct special activities for member organizations on a fee for service basis:

o Development of directories
o Creation of special promotional material
o Project management for regional or sector oriented projects

Sample Portfolio of Activities

· Marketing

o Develop and implement an international investment marketing campaign including

· Advertising campaigns
· Event participation / CRM / etc.

· Branding

o Establish an Invest BC brand through:

· Use of logo
· Development of themes (ex. "power, people, place)

· IDRC

o Invest BC presence at the Dallas and Salt Lake City Congresses
o Ongoing involvement with PNW committee

· IDRC Follow up

o Develop direct contact campaign with contacts made at World Congresses
o Conduct and coordinate with relevant organizations investment familiarization tours for potential investors

· Direct Market Campaign

o Target on high technology sector in Southern California
(See BC Hydro business plan)

· Community Databases

o Maintain and upgrade existing community profiles
o Merge Hydro provincial data with GVEP data
o Establish governance mechanisms for communities to maintain their portions of the database

· Investment Website

o Build on existing invest-BC website to develop a more interactive site
o Establish content partners to enhance information available to investors (ex. Real estate industry)

· Promotional Material

o Collaborate with private sector firms to produce brochure ware (example Costalogic)

· Regional Investment Forums

o Conduct region forums to develop strategic investment attraction initiatives within the economic development regions of the province

(c) 1998 City of Vancouver