An Economic Development Program for Investment Readiness and Site Selection
Communities across North America need strategic plans, especially with global forces ever changing the world we live in. The strategic plans for economic development have to be dynamic and they should embody the necessary questions which are troubling all of North America. This is particularly difficult for a small community in
The GO North Investor program through the Ministry of Northern Mines and Development has found a better way in which several states south of the border should take note. Their program is named the Northern Communities Investment Readiness. The initiative promotes and supports a strong investment attraction climate in
The program is managed by Michael Dunlop of the Ministry office in
– GO North (attracting new investment)
– Grow Bonds (investing in business growth)
– NOHFC (targeted job creation support)
– Northern Development Councils (public policy input)
The overall goal is: attract new “anchor” investments to northern communities
Ø Promote the strategic advantages of Northern
Ø Focus on large-scale investments (100+ jobs) that promote innovation and growth
• Value-added resource-related industries, innovative technologies, large-scale tourism facilities, research-intensive investments
Mike says that there are areas of the economic development process communities can control and some that they cannot. One of the easiest and most effective aspects we can control is our readiness to deal with investors needs. The expectations of site selectors / investors regarding response time has changed dramatically in the past 10 years. Therefore, communities should respond quicker and more efficiently and the Ministry can assist. If you ask the question of what is investment readiness, then the response at the Ministry is the following: • Knowledgeable professional points of contact for potential investors
- Up to date comprehensive information on your community and region that is able to be quickly accessed and distributed.
- A comprehensive strategic plan that takes into account:– All community regional assets– Identification of target sectors / markets that would benefit from those assets– Gaps in investment structure and strategies to address these shortfalls– A plan to leverage regional strengths for the benefit of multiple communities– Government and private assistance in achieving attraction goals.
The Ministry asks if you think you (the Northern Ontario community) measure up you should ask yourself the following questions: Do you have the information that is required at your fingertips? 1.) Is it up to date? (2.) Can it be distributed widely / quickly /and in segments? (3.) Do you have an up to date OITS electronic profile?4.) Is your EDO’s municipal staff properly trained to deal with investment potential inquiries?5.) How investment friendly / ready is your community / region? Financial support for the program is up to 75% of a project’s costs. The amount for an individual applicant can be up to $5,000 (but that is not per community or area). The amount is based on the nature and scope of the project. Applicants must contribute min. 10% equity. Applicants may reapply for funding to support additional incremental steps towards investment readiness. Multi partner applications can combine funding. There can easily be made available additional funding available for projects of regional significance. This is of important note because communities within a hundreds miles of each other can apply for programming of a regional nature that can now afford a strong consultant to advise and assist the community to be investment ready. The eligible applicants can include municipalities, economic development corporations, First Nations and partnerships. In the Investment Readiness program the eligible project activities may include : workshops and training; strategy development; Asset inventories / SWOT analysis / Gap Analysis / Infrastructure requirement studies site selection information development; investment priorities identification; community profile development for the Ontario Investment Service website; target and market identification, in-bound familiarization tours or site visits of potential investors. The important point is that communities which may have three eligible recipients (municipality, First Nation and the economic development organization) can apply jointly with other communities in their region (they may also have three entities) for $5,000/recipient. If neighboring communities apply for up to $30,000, and the federal organization matches with $5,000 or $10,000, and the communities combine to contribute $4,000, there are enough funds to conduct a comprehensive strategic plan for this author and probably several more consulting firms. Ineligible project costs include: capital or rolling stock purchases, annual operating expenses, long term leases, advertising or promotional materials, outbound travel and accommodations, permanent staffing, refundable GST payments, costs incurred prior to the application date. In other words, the Ministry wants this money specifically used for strategic initiatives where the community or area develops long term strategies not short term projects or pays for salaries. Another key is the Investment Readiness test which is simple and easy to complete but it does test the community’s ability to be serious about economic development.
Applicants must complete an application form and the Investment Readiness Test.
Application forms, applicant guide and Investment Readiness Test may be downloaded from: www.mndm.gov.on.ca/GONorth. Then the completed applications and supporting documentation are forwarded to the MNDM GO North Program Office in Thunder Bay be postmarked no later than Dec 31, 2007.
According to Dunlop, “preparation is the key and he believes in a linear approach to strategic planning. Successful investment attraction requires careful planning, preparation, & coordination. Every community is at a different stage of preparation and has differing strengths and challenges. There are key steps to facilitate successful investment attraction.[1] • The first step is training: Ensuring that anyone engaged in investment attraction activities has the proper skills and training should be the first step for any community. Examples for investment attraction:– Seeking new investment & choosing targets– Dealing with site selectors– Accessing funding / resources– Working with consulates and trade associations– Preparing informational packages and business case (what do they want)– Identifying / Working with stakeholders: unions /realtors / councils/ government / business / – Knowing how to work the floor / booth at trade shows Training is often done on a regional basis to reduce cost, strengthen regional initiatives and facilitate networking and cooperation regionally. It can include regional municipalities, First Nations, Economic Development Organization’s, private sector reps, real estate, municipal councillors. The training can be arranged to be flexible in delivery. http://bestpracticesgroup.com/training_programs.htm. The next step is asset inventory. A community needs to conduct an inventory of the assets that are available for use by investors: This includes an analysis of commercial real estate, natural resources, workforce, access to utilities, transportation infrastructure, idled structures, communications structure, healthcare / education facilities, distance to markets, existing businesses, etc. An effective strategy is often to prepare a regional asset inventory which is often more competitive.
Dunlop maintains that you must think graphically when you design your inventory (good map, photograph, drawings) http://www.2ontario.com/. The communities should consider various formats for your land inventory (computerized database , web sites) and include public properties in your land inventory. They should also make sure your land use planning supports your assets as a competitive advantage. A flexible official plan and zoning by-laws, can help accommodate a range of new industrial and commercial uses.
The third step is the market study. With the assets available what industry / business sector is most likely to consider investments. (Individual / regional). This is especially critical for communities that are experiencing declines in long term key industries.With creativity this can lead to change in economic makeup of community when the change is dramatic. One community in Northern Ontario that has reinvented itself is Elliott
The next step is a needs analysis. With one or more sectors identified as potential investors, perhaps a study of those sectors specific needs is required. The market study based on the community’s asset inventory provides direction. Now the community should ask the companies themselves for input on your suitability and any gaps that may act as a final barrier to investment. Some identified gaps are real and need solutions others may be perceived and can be dealt with quickly. With the information gathered from your market studies and needs analysis you can now put together a plan to attract your defined target investors.
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- What are the identified “gaps” how will the community will fill them?
- What is the community’s “value proposition”?
- How will you get your message out to the investors?
- What strategic alliances are needed government, regional / business?
- What funding can be accessed?
Now the community or region is ready to compete and if all Northern Ontario communities follow this formula they will. Why are not American states and planning organizations following the same formula?
- Develop a marketing plan.
- Prepare informational packages and business cases
- Consolidate marketing efforts locally and regionally
- Participate in trade shows and investment marketing activities.
- Consider trade and investment marketing partnerships.
- Market your community on the Web.
- Reach out to potential leads
- Respond to inquires from site locators promptly
- Use the Ontario Investment Services site
It appears that Mike Dunlop and his manager Dale Ashbee are far ahead of their American counterparts. In this author’s travels to small towns in early 2007 he spoke to several who wanted strategic plans but said their boards could not afford them. Too bad they don’t have Mike and Dale.
[1] Michael Dunlop: Investment Readiness Seminar, Feb. 19, 2007,