Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

City Services and Budgets Committee

FROM:

General Manager of Corporate Services

SUBJECT:

Vancouver Economic Development Commission - Contract Renewal

 

RECOMMENDATION

B. THAT Council extend the contract with the Vancouver Economic Development Commission to include participation in the plan to revitalize the business (plus applicable GST) sector in the Downtown Eastside, as detailed in the VEDC 1999 Business Plan at a cost of $50,000, source of funds to be the 1999 Operating Budget.

C. THAT Council instruct the Vancouver Economic Development Commission to report back with details on plans to utilize Asia Pacific Legacy Funds to undertake the International City Project.

GENERAL MANAGER COMMENTS

POLICY

Council has adopted a policy of contracting with the Vancouver Economic Development Commission for the provision of economic development services.

PURPOSE

The purpose of this report is to seek renewal of the City's contract with the Vancouver Economic Development Commission for the 1999 fiscal year and extension of the contract to include participation in the revitalization of the Downtown Eastside.

BACKGROUND

The Vancouver Economic Development Commission is an independent, non-profit organization created by Council in 1997 as a focus for economic development in the City. The Commission seeks to unite the private and public sectors in the active and progressive management of Vancouver's economic growth.

The Commission consists of eight volunteer members drawn from the Vancouver business community. Collectively, they bring an array of knowledge and contacts in such areas as urban planning, recreation, transportation, international finance, high technology, economic development, communications, international trade and urban development. The members of the commission are listed in the Commission' 1998 Report Card (attached).

Following a start-up period, Council approved the bylaws and mandate of the Commission as part of its contract for the 1998 fiscal year. The cost of the contract for 1998 was $200,000.

DISCUSSION

1. 1998 Year in Review

The Vancouver Economic Development Commission (VEDC) has submitted its 1998 Year End Review (Appendix 3, limited distribution) and 1998 Report Card (Appendix 1). Activities were concentrated in several areas specified in the contract with the Commission, including:

· business development events, including high level workshops with public and private sector interests, participation with trade missions and activities to promote small business development;
· marketing and promotion of Vancouver as a business location through development of promotional material and management of an inquiry and referral service;
· development of economic development partnerships within Vancouver and the region and
· provision of economic development policy advice.

Considering that 1998 represents the first year of activities for the Commission, considerable progress has been made and plans are in place to complete several tasks that were begun during the year.

The Commission's primary source of income in 1998 followed from the contact with the City. The following table summarizes the financial activities of the Commission projected to the end of December, 1998

Carried over from 1997

$42,300

Income

 

City of Vancouver

190,200

 

Internship Revenues

2,200

Total Funds Available

$ 234,700

 

Expenses

 

Staffing & Benefits

$ 92,200

 

General Office

67,400

 

Business Development

33,200

 

Communications

4,200

Total Expenses

$ 197,000

 

Balance Available for 1999

$ 37,700

In addition to these revenues, VEDC reports that contributions in-kind totalling $100,100 were received through the sponsorship program.

The funding available at the end of 1998 has been factored into the 1999 Business Plan and will be utilized primarily to complete the State of the City report that was begun in 1998..

2. Renewal of the VEDC Contract

The VEDC has submitted its business plan for 1999. The overall priorities for the Commission fall into several areas:

· marketing Vancouver as a business location
· business development initiatives
· development of government-business partnerships
· economic policy and research

Details of these activities are included in the 1999 Business Plan (Appendix 4, limited distribution). These activities will be undertaken as part of the base contract with the City, requiring a contribution to the Commission of $200,000. This contribution represents approximately 56% of the anticipated cost of the proposed programs in the base plan.

The Commission also proposes involvement in two special projects that will require additional funding from the City:

· participation in the economic redevelopment of the Downtown Eastside as part of Council's initiative to revitalize the area. The Commission has requested an additional contribution from the City of $50,000 to undertake this work (Recommendation B)
· initiation of the International City Project, which focuses on expanding Vancouver's relationships with other international cities on the Pacific Rim and seeking opportunities to enhance our role as an international banking and finance centre, as a major tourism and convention destination, as an internationally recognized research and educational centre and as a location of choice for high technology industries. The Commission plans to utilize Asia-Pacific Legacy Funds currently held by the City for the Commission (Recommendation C).

Staff have reviewed the Commission's 1999 Business Plan and note that it is consistent with the contractual relationship with the City. While it represents a significant undertaking, many of the initiatives included in the plan are continuation of work begun in 1998 and can be expected to continue beyond 1999. The momentum developed by the Commission during 1998 should be supported by the City. As a result, staff recommend that Council approve the business plan and renew the City's contract with the VEDC for 1999 at a cost of $200,000 plus applicable GST.

Staff are also supportive of the additional requests of the Commission. Participation of the Commission and its coalition of business and community partners in the redevelopment of the downtown eastside is likely to be more effective than if the City acts alone. It isrecommended that Council extend the contract with the Commission to include this activity at a cost of $50,000 plus applicable taxes. The International City Project proposed by the Commission focuses on Vancouver's role in the Pacific Rim and represents appropriate use of funds established in 1997 for Asia-Pacific initiatives. Staff recommend that the Commission further develop this proposal and report back for allocation of the legacy funds held by Council for this purpose.

Staff also note that one of the objectives of the 1999 Business Plan is the diversification of funding sources. As noted above, the Commission generated in-kind sponsorship totalling $96,000 during 1998 and has set a goal of $250,000 for 1999. This initiative ensures that economic development activities are achieved with the support of both the City and the business community itself. The proposed budget of the VEDC for 1999 is detailed in the Business Plan document and is summarized in Appendix 2.

CONCLUSION

The Vancouver Economic Development Commission has submitted its business plan for 1999 and has requested that Council renew its contract with the City for the provision of economic development activities. In addition, the Commission has proposed participation in the initiative to revitalize the Downtown Eastside and to undertake the International City Project. Staff are recommending that Council approve the requests of the Commission.

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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cs981210.htm

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