Appendix 1

Vancouver Economic Development Commission

2002 Business Plan

Table of Contents

Executive Summary

2002 Business Plan

Budget and Financial Plan

Year 2001 in Review

Executive Summary

The role of the Vancouver Economic Development Commission (the "VEDC") is to promote Vancouver's economic growth and to encourage a healthy business environment for the City through coordinated action by the private and public sectors.

VEDC's mandate is:

¨ to promote economic development for Vancouver;
¨ to serve as a link between City Hall and the business community; and
¨ to be a vehicle for leadership in the definition and realization of Vancouver's economic potential.

The economic development strategy is underpinned by five guiding principles:

Innovation
Diversity
Entrepreneurship
Associations
Sustainability

To achieve its mandate, VEDC has identified three principal goals with related strategies for 2002:

4. To provide leadership with respect to economic development in Vancouver.

Develop a vision and long-term strategy for economic development in Vancouver
Foster a positive business climate through partnership initiatives
Develop an economic development brand for Vancouver, to which a VEDC brand would be linked
Monitor and report on key factors that will affect the economic development climate in Vancouver
Provide strategic advice to Council on issues that affect economic development in Vancouver

5. To promote Vancouver as a vibrant and diversified destination for business and investment.

Retain and expand existing businesses
Attract new business
Target key sectors or clusters for business development
Position Vancouver as a place to do business
Increase international profile of Vancouver as a place to do business

6. To assess and report on performance indicators for Vancouver and VEDC.

Provide quarterly reports on key economic indicators for Vancouver
Implement a monitoring system for tracking business development and movement
Research and monitor peer city policies and activities
Report quarterly and annually on VEDC's performance

In addition, VEDC will elevate its profile within the business community, raise awareness of Vancouver as a prime business location and highlight the city's strategy for economic development. It will also provide secretariat support to the Commissioners and members of Council. Each of these goals will be supported by a comprehensive communications plan.

Implementation of the business plan is intended to enhance the property tax base.

2002 Business Plan

Overview

Working with the business community and all levels of government, VEDC promotes economic development of the city by encouraging a healthy business climate while ensuring the preservation of the cultural and environmental values that Vancouver's citizens value.

Our mandate is to promote economic development for Vancouver, to serve as a link between City Hall and the business community; and to be a vehicle for leadership in the definition and realization of Vancouver's economic potential.

Principles

The economic development strategy is underpinned by five guiding principles:

Innovation
Diversity
Entrepreneurship
Associations
Sustainability

Innovation
Technical innovation and research support the growth of many of Vancouver's key sectors and enterprises.

Diversity
Vancouver's diverse ethnic culture creates a unique labour force which offers many different languages, skills, experiences and options for doing business. Equally, an economy well-diversified among key industry sectors has allowed the city to perform better than many other economies.

Entrepreneurship
Small business makes up over 90% of Vancouver's business. Entrepreneurs drive economic development in the city.

Associations
Associations and partnerships, both formal and informal, allow a pooling of resources harmonize efforts and ensure a coordinated, unified approach to economic development.

Sustainability
The balancing of economic, social and environmental interests is critical to community support of a long term economic development strategy.

Goals

VEDC has identified three principal goals with related strategies for 2002:

1. To provide leadership with respect to economic development in Vancouver.

Develop a vision and long-term strategy for economic development in Vancouver
Foster a positive business climate through partnership initiatives
Develop an economic development brand for Vancouver, to which a VEDC brand would be linked
Monitor and report on key factors that will affect the economic development climate in Vancouver
Provide strategic advice to Council on issues that affect economic development in Vancouver

2. To promote Vancouver as a vibrant and diversified destination for business and investment.

Retain and expand existing businesses
Attract new business
Target key sectors or clusters for business development
Position Vancouver as a place to do business
Increase international profile of Vancouver as a place to do business

3. To assess and report on performance indicators for Vancouver and VEDC.

Provide quarterly reports on key economic indicators for Vancouver
Implement a monitoring system for tracking business development and movement
Research and monitor peer city policies and activities
Report quarterly and annually on VEDC's performance

VEDC will also elevate its profile within the business community, raise awareness of Vancouver as a prime business location and highlight the city's strategy for economic development. It will also provide secretariat support to the Commissioners and members of Council. These goals will be supported by a comprehensive communications plan.

In 1999, City Council mandated VEDC to lead the Downtown Eastside Revitalization Strategy. Since that time, the VEDC has continued work on Downtown Eastside initiatives, and in cooperation with the Four Corners Support Fund Society, has established Partners for Economic and Community Help (PEACH) as the main vehicle for program delivery. An executive director was retained by the boards of VEDC and Four Corners to manage PEACH. During 2001, VEDC largely served as a gatekeeper for funding, with PEACH playing the active management role. We anticipate that PEACH will soon become a separate legal entity and that VEDC will continue to play an advisory role as a member of PEACH's board. During the transition period VEDC would continue to provide support on a fee for service basis

Goal #1 - To provide leadership with respect to economic development in Vancouver.

Objective	Specific Measurable Activity	Outcome
Develop a vision and long-term strategy for economic development in Vancouver	Series of focus groups for business and community input to vision, and one major general forum for discussion One Council workshop to refine economic development vision	Long-term economic development strategy and vision statement with strong business and community support
Foster a positive business climate through partnership initiatives	Continuing partnership with Vancouver Board of Trade on expanding city competitiveness analysis	Current, comprehensive analysis of Vancouver's competitive advantages
	Partnership with BC Business Council and BC Chamber of Commerce	Increases understanding of Vancouver advantage Increases buy-in from business community
	VEDC participation on advisory boards or task forces for at least six initiatives, such as 2010 Olympic bid and convention centre expansion VEDC participation in at least two BIA initiatives	Tangible support provided to initiatives important for business growth
	Co-host six sector-specific business luncheons with Mayor for business leaders to present concerns in a constructive, non-confrontational manner	Fosters confidence in business community that Council is interested in encouraging business
Develop an economic development brand for Vancouver and VEDC	Work with branding specialist to develop a brand for VEDC, linking VEDC brand to city economic development opportunities	More effective brand/image for VEDC and Vancouver Positions VEDC as key authority with respect to economic development issues
Monitor and report on key factors that will affect the economic development climate in Vancouver	Through media and partners, monitor developments that can affect economic development in the city Active involvement in economic development issues that affect Vancouver, opportunities to improve economic development climate	Improves ability to identify and address significant issues that may affect economic development in the city
Provide strategic advice to Council on issues that affect economic development	Two Council workshops focusing on key economic development issues/initiatives Discussion papers on four key economic development issues	A pro-active approach to identifying business concerns, providing Council with perspective on issues and seeking Council feedback Improves Council's awareness of economic development issues
	Regular contact through Council liaisons, quarterly activity reports, one-on-one meetings with Councillors	Improves two-way communication between VEDC and Council

Goal #2 - To promote Vancouver as a vibrant and diversified destination for business and investment.

Objective	Specific Measurable Activity	Outcome
Retain and expand existing businesses	Identify current range of businesses and contact information for head or senior branch offices of each business	Current inventory of business profiles and contacts
	Invite resource sector participation on VEDC promotional initiatives	Acknowledges substantial contribution by resource sectors to Vancouver economy
	Monitor business decisions/issues through the media and local networks	Improves familiarity and understanding of business community's needs
	Systematic contact with decision makers representing business in Vancouver, assessing their level of satisfaction and future needs Serve as an advocate for the business community	Contact 200 businesses Increases VEDC contribution to business expansion/relocation decisions Increases ability to monitor business concerns and satisfaction regarding economic development climate Fosters confidence in business community that Council is interested in encouraging business
	Six sector-specific meetings between business leaders and Mayor/Council to discuss business concerns	Fosters confidence in business community that Council is interested in retaining business
	Four quarterly updates to ongoing city competitiveness analysis	Increases awareness of city competitiveness analysis, fosters solid understanding of Vancouver advantage
	Two testimonials from each growth sector identified in city competitiveness analysis for use in promotional materials	Provides support for Vancouver advantage by local business Strengthens relationships with key sectors
	Showcase 20 business success stories to international marketplace as free publicity for small business by including in promotional materials for foreign trade/investment offices Establish online small business resource centre, including support for e-business, growth strategies	Increases support for small business growth
Attract new businesses	Maintain current comparative information relative to other GVRD municipalities Maintain current comparative information relative to Seattle, Portland, San Jose, Calgary and Toronto	Increases ability to Identify and promote Vancouver advantage Provides key resource to prospective investors
	Provide timely and accurate information on Vancouver statistics through staff and website	Solid information on Vancouver advantage
	Pro-active contact with key businesses that may consider locating in Vancouver	Increases national and international awareness of Vancouver advantage Contact 50 new companies
	Increase distribution of city competitiveness analysis Work with Industry Partnerships Canada to increase communication, at no cost, with public and private sector decision-makers around the world	Positions Vancouver locally, nationally and internationally as a place to invest
	Increase relationships with key site selectors
	Attend (with BC partners) key trade/investment conferences, IDRC	Increases direct contact with relocation prospects
	Assess feasibility of volunteer "Vancouver business ambassadors" in North America, Europe and Asia	Establishes a network of volunteer ambassadors as an additional avenue of exposure to international markets
	Design and complete exit surveys for businesses contacted, site selectors and other inquiries	Improves understanding of decision-making process, key reasons for location/relocation decisions that can translate into policy advice to Council or other actions
	Participate in province-led partnership to promote BC and Vancouver advantages	VEDC presence in coordinated and harmonized promotion and marketing of BC investment opportunities
Target key sectors or clusters for business development	Partnerships with key sector associations, venture capital organizations and/or business representatives to promote centres of excellence for doing business	Builds critical mass in key sector areas (advanced technology, finance, insurance and real estate, film and television, tourism and education)
	Partnerships with the University of British Columbia, Simon Fraser University and BCIT to build on research initiatives	Increases awareness of research and innovations and explore opportunities to lever business development from these
	Partner with three key private sector champions/organizations on sector-specific promotion initiatives Conduct focus groups, engaging business leaders in vision for economic development	Increases private sector support for economic development
Position Vancouver as a place to do business	Partnership with Gateway Council	Increases awareness of Vancouver's strategic gateway opportunities for both inbound and outbound traffic
	Develop a program focused on bringing head offices to Vancouver	Contact 40 head offices outside of Vancouver
Increase international profile of Vancouver as a place to do business	Provide promotional materials on Vancouver business to 20 foreign federal and provincial trade and investment offices Facilitate trade delegation meetings and missions Attend key international trade/investment conferences and missions Receive international trade delegations and missions on behalf of city of Vancouver	Increases exposure to international markets Fosters international trade contact Establishes foundation for international trade relationships

Goal #3 - To assess and report on performance indicators for Vancouver and VEDC.

Objective	Specific Measurable Activity	Outcome
Provide quarterly reports on key economic indicators for Vancouver	Quarterly report to Council and the public	Close monitoring of changes in economic climate of Vancouver
	Work with City staff to explore more innovative indicators as measures	New or more precise measures for tracking economic development
Implement a monitoring system for tracking business development and movement	Establish tracking system to monitor the movement of business and investment in Vancouver	Improves understanding of business and investment profile Improves understanding of issues that affect decision making
Research and monitor peer city policies and activities	Maintain current analysis of Vancouver relative to GVRD and other peer cities	Solid information to attract new business and encourage existing business to stay and expand operations Improves understanding of advantages and shortfalls Improves ability to provide detailed comparative information
Report quarterly and annually on VEDC's performance*	Establish quarterly benchmarks from business plan Activity-based and financial quarterly and annual reports to Council Quarterly economic development news and information, news releases as appropriate	Quarterly assessment of progress
	Review and define VEDC governance practices	Improved governance model

*Benchmarks to include such measures as:

Number of business retentions and expansions
Number of requests received in the year
Number of hits to the website
Number of businesses attracted to the city
Number of media articles on economic development opportunities in Vancouver
Number of increased jobs in key sectors
Quality of staff
Influence in the community
External understanding of VEDC role

Secretariat and Communications Support

Staff will provide Secretariat duties to support the Commissioners and members of Council and ensure that all of these activities are supported by an effective communications plan as follows:

Provide secretariat duties in support of the Commissioners and members of Council

Activity	Deliverable
Ensure broad and representative board membership	Board that is broadly representative of the business community
Coordinate Board activities	Monthly meetings to provide activity updates, solicit guidance on future direction, and a discussion forum
Coordinate Executive Committee meetings	Monthly meetings to review financial statements and prepare agenda items
Coordinate Advisory Board activities	Broad representation on board to expand linkages with business, academics and public sector, a minimum of two meetings of the advisory board
Coordinate communication with Council	Regular email and verbal contact, a minimum of two workshops addressing strategic economic development issues, quarterly reports, quarterly financial reporting, annual report
Coordinate contact with Corporate Services	Regular verbal and email contact, formal quarterly meetings
Coordinate public reporting	Quarterly public reports, news releases
Provide administrative support	Managed office and staffing, balanced budget, project-specific fundraising activities

2002 Communications Plan Summary to support VEDC

The Communications Plan is the framework for a comprehensive communications program for VEDC, ensuring that the following objectives are met:

1. Key audiences are identified and tracked.
2. Key audiences are aware of VEDC, its mandate and its activities.
3. VEDC is identified as the primary information source for business in Vancouver by businesses and media.
4. Current information about Vancouver is distributed on a regular, timely basis.
5. Full branding strategy is implemented by the end of 2002, resulting in strong brand recognition for VEDC.

Activity	Deliverable
Establish a brand for VEDC and the city.	New image for VEDC, Vancouver identity as favourable destination for investment
Facilitate development of a well-defined and well-communicated economic vision and strategy	City vision that has broad buy-in and good public awareness
Establishment of small business online resource centre	User-friendly, web-hosted, small business resource centre
Establish detailed tracking of information requests - annual follow-up with contacts to determine quality of service	Annual survey results from information requests and detailed analysis of information requests
Produce 3 quarterly reports and 1 annual report for print and web distribution	Quarterly and annual reports
Develop regular email newsletter (monthly) to announce new businesses, important business information, website updates	Monthly electronic newsletter with quarterly indicator data
Restructure website for maximum efficiency, pages optimized for printing as well as viewing.	Enhanced website with improved access and navigation
Define sponsorship opportunities	New corporate sponsors
Launch media awareness campaign in three stages - local, provincial, national/international	Improved media awareness of VEDC, and economic development potential of the city
Produce Vancouver Business Facts in partnership with Business in Vancouver and other sponsors	Enhanced awareness of economic development potential of the city and information tool for prospective investors
Produce additional support materials as required	News releases and other collateral materials

Budget and Financial Plan

In order to support all of the identified goals and activities identified for 2002, VEDC will require a complement of five staff including an executive director, two business development officers, a director of communications and information/administration officer and a financial resource of $550,000. Limited revenues will be generated through corporate sponsorships and project-specific fundraising. The proposed budget for core activities is as follows:

Revenues*

Service Contract CoV 550,000
Corporate Sponsorships 20,000
Total revenue 570,000

Core annual operating costs
Audit 4,000
Bank charges/interest 200
Communications & Promotion 35,000
Dues and subscriptions 2,000
Hospitality and entertainment 6,300
Legal services 3,000
Insurance 1,000
Maintenance/Parking 3,000
Meetings and conferences 5,000
Office supplies 6,000
Office equipment 10,000
Printing and publications 15,000
Rent-gross 50,000
Research/Data Purchase 5,000
Salaries /benefits 392,000
Travel 12,500
Total core costs 550,000

Other costs
Loan Repayment 20,000

Total 2002 Costs 570,000

Notes:

1. VEDC will secure addition project- funding as required. To this end VEDC has received a one-time grant from the TELUS Community Innovation Fund of $25,000 to develop a web-hosted small business resource.
2. A contingency reserve is contemplated subject to year-end results.
3. Corporate sponsorships will be secured through web-site and publication sponsorship opportunities.

VEDC's core funding is provided pursuant to the terms of an annual operating contract with the city. In addition, VEDC has historically supplemented this core funding through a variety of other funding sources including:

Corporate Sponsorship

VEDC secures sponsorship support both in the form of cash payments and through the provision of in-kind goods and services.

1. Volunteers and Donated Services

VEDC has received substantial support from volunteers and from other donated services. Volunteers and student interns provide reception services, translations, project specific skills, as well as support for ongoing VEDC activities. VEDC's volunteer Board of Commissioners donates many hours of time to support VEDC activities.

Loan Repayment

Due to an operating shortfall in 2000, the city has provided repayable financial assistance to address financial commitments. VEDC will repay this advance over a four year term, with interest, through funds raised outside of the operating contract. Annual payments to the city will be $20,100, based upon a lending rate of 5.75% annually. VEDC began payments in July of 2001 and will have completed six months payments of the four year commitment at year end.

Appendix 1: 2002 Regular Deliverables Schedule

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Economic indicators

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Quarterly report

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Annual report

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Business luncheon presentation

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Sector profiles

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News release -monthly to announce new businesses, VEDC activity

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Vancouver Facts(updated with 2001 census data)

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Feature profiles (website)

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Website updates

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Small business resources(website update, info sheet update)

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Demographics(updated with 2001 census data)

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Appendix 2: Year 2001 in Review

The year 2001 was one of transition as two interim executive directors were appointed in succession until a new executive director joined VEDC in June. Despite this transition VEDC carried out numerous activities to fulfill its 2001 Business Plan. The following summarizes VEDC activities and highlights its achievements during 2001.

Core Activities

1. To provide economic information on Vancouver.

Responded to over 500 information requests on subjects ranging from demographics to site selection assistance to business immigrant requirements.

To better track inquiries, established a database and implemented contact management software. An email distribution list numbering over 400 qualified contacts (e.g. individuals who have asked to be added to the email list) receives regular email notification on Commission activities and news.

Achieved 24 hour turnaround time for responses for all but the most complex inquiries.

Realigned priorities for translation of materials consistent with requests.

Examined fee for service proposal and determined its unsuitability due to a lack of cost-effectiveness.

Data on the website was indexed and is now updated as new information is published, usually on a quarterly or more frequent basis.

Repositioned website for improved visibility by search engines.

VEDC did not complete individual fact sheets on specific business sectors but rather chose to build partnerships with a number of key associations representing those sector. To date VEDC has not produced a 2002 Economic Outlook as both the provincial and federal governments have issued forecasts.

2. Promote Vancouver locally, nationally and internationally.

Monitored local and other media sources for reporting on Vancouver as a business location.

Met with several trade delegations from various Chinese provinces and one from Inner Mongolia.

Placed advertisements in targeted site selection magazines.

Attended a number of key events addressing aspects of economic development for Vancouver and a number of events that brought companies operating outside of Vancouver to Vancouver.

Interviewed several communications specialists regarding VEDC branding, establishing an action plan for a comprehensive branding in the new year. Branding was delayed until next year subject to approval from Council for an ongoing mandate.

3. Provide advice on economic issues of substance to the City

Working closely with city staff including project leader, Roger Fast, and Commissioners completed an extensive review of economic development business models, comparing economic development models of 25 cities and regions in North America, identifying and analyzing various local and regional models, public/private partnerships, and their applicability to Vancouver.

Conducted over 50 interviews with key people and associations affected by or affecting economic development in Vancouver, seeking input to the recommended business model for economic development.

Worked with representatives of the provincial Ministry of Competition, Science and Enterprise, the former Chair of the Greater Vancouver Economic Partnership, BC Hydro, City staff, and the GVRD to establish a province-led partnership for economic development at the provincial level.

Conducted an analysis of Vancouver's competitiveness advantage relative to five other North American peer cities, identifying Vancouver's business strengths.

Completed a strategy for retaining, expanding and attracting business to the City which is contained in the 2002 business plan under Goal #2.

4. Forge strategic relationships with public and private entities in order to enhance economic development in Vancouver.

Secured Founding Partner status with the Spirit of Vancouver initiative with in-kind contribution commitments (representing a value of $30,000 over three years).

Extensive contact and communications with local organizations interested in economic development in Vancouver. Some of the organizations with which we have established stronger relationships and, in some instances, joint initiatives, include:

Vancouver Board of Trade

Tourism Vancouver
University of British Columbia and Simon Fraser University
Greater Vancouver Gateway Council
BC Technology Industry Association
BC Biotech Alliance
Vancouver/Whistler 2010 Bid Corporation
BC Hydro
Ministry of Competition, Science and Enterprise
Industry Canada
Western Economic Diversification
Department of Foreign Affairs
Vancouver business improvement associations

Provided written support for local initiatives such as:
Spirit of Vancouver

Vancouver/Whistler 2010 Olympic Bid
Multivan Broadcasting Corporation ethnic programming license
Vancouver Hospital and Health Sciences Centre re-zoning application

Given competing interests with other year-end events, a year end wrap-up event has been deferred to a 2002 launch event.

5. Identify and communicate key economic indicators to gauge progress.

Identified key economic indicators.

Produced first quarterly economic indicator report in third quarter report to Council.

Conducted benchmark analysis for Vancouver against five competitor cities

6. Provide secretariat duties in support of VEDC and members of Council.

Completed reorganization of VEDC including staff structure to best support VEDC, reporting procedures and policy development and consolidation of filing systems.

Enhanced awareness of VEDC.

Restructured committees to reflect VEDC priorities for 2001.

Implemented a plan to relocate VEDC office in more functional space in a more strategic location. This will be finalized early in 2002.

Special Projects

1. Downtown Eastside Initiatives (funded by the City of Vancouver)

Downtown Eastside initiatives are managed by Steve Lindmayer operating out of the VEDC office and John Barr, Executive Director of PEACH.

VEDC commissioned Phase II of the DTES Economic Capacity Study, following Phase I's completion in 2000. Phase II will identify economic and community opportunities in the DTES. The report and recommendations are expected to be complete in March 2002.

The inaugural Rive Gauche Festival Street Market in Pigeon Park was held every second Saturday over the summer months and was a success with local residents. Several months of planning and organization went into this community cultural project, which will be planned as an annual event.

The DERA Call `N Post, for which the City of Vancouver, through VEDC, provided startup funds and lease subsidy assistance, opened in September and provides mailbox, voice mail, printing and photocopying services to local area residents.

VEDC worked to bring the Common Concerns Association Clothes Encounters Laundromat to development. The laundromat is in the final stages of electrical wiring and is expected to open in early January. The City of Vancouver provided startup funds, lease subsidy assistance, and extensive project management support through VEDC.

2. Investment Promotion Initiative

An initiative focused on promoting Vancouver as a key location for high technology investors, site selectors, real estate professionals and companies from the U.S. and overseas was initiated in January. Under the leadership of John Lorenz, on secondment from Industry Canada, a new component of the VEDC website was launched to promote interest in the high technology sector in Vancouver. New promotional materials were developed and VEDC participated in an IDRC conference in Seattle with InvestBC.

In addition, John and representatives from the real estate and high technology sectors met with the Mayor, Council and city staff providing a high technology perspective on Vancouver's future and presenting a new initiative to position Vancouver as a prime location for high technology investment.

2001 Financial Results

VEDC management implemented a monthly reporting system for financial statements that clearly highlights variance on a line item basis and restructured financial affairs achieving significant savings during fiscal 2001. A modest cash surplus is forecast for the year end reducing the projected deficit. It is intended to apply half of the cash surplus for loan repayment and retain the balance for contingency purposes. Further consideration of the 2001 financial statements will be made after year end results are finalized in 2002.

VEDC raised external funds of $10,770 through web sponsorship and began repayment of its loan repayment obligations in July as scheduled. VEDC also raised $43,000 as special project funding for the Investment Promotion Initiative.

(c) 1998 City of Vancouver