investment attraction and the northern community investment readiness program

Ministry of Northern Development and MinesNorthern Development Division

Investment Attraction and the Northern Community Investment Readiness program

Ministry of Northern Development, Mines and ForestryNorthern Development Division

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Investment Attraction A Competitive Process

• Companies seeking to expand or relocate their businesses, carefully investigate multiple locations in an effort to get the most cost effective location that still meets their operational requirements.

• At times companies may have some key constraints such as proximity to raw resources / suppliers / markets / labour / etc.

• At other times depending on the industry / sector there may be few if any constraints that limit their flexibility to choose locations.

• It is important to realize that Northern Ontario communities are often competing globally for potential investments. This increases our competitors and our potential opportunities.


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Investment Readiness A Competitive Aspect You Can Control

• Some aspects of our competitive stance are within our control and others are not. (Natural Resources / Location) (Infrastructure.)

• One of the easiest and most effective aspects we can control is our readiness to deal with investors expectations / informational needs.

• The expectations of site selectors / investors regarding response time has changed dramatically in the past 10 years.


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How Ready Do You Need To Be???

The term “instant gratification” should come to mind when developing systems & processes to respond to investors inquiries.

A community ED department needs the knowledge & resources to respond quickly to potential investors and they

need to be able to access instantly current information that can be distributed at a keystroke.


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Investment Readiness

What Is Investment Readiness?

Knowledgeable professional points of initial contact for potential investors.Up to date comprehensive information on your community and region that can be

quickly accessed and distributed. (Six months old is not up to date.)A comprehensive investment attraction strategic plan that takes into account:

• All community regional assets. • Identification of target sectors / markets that would benefit from those assets.• Existing barriers to investment (and a plan to remove / reduce these.)• 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.


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What Are They Looking For / Comparing

Site selectors work for the investor and are paid to locate the BEST location for an investment utilizing a set of parameters set by the investor.

These parameters can differ depending on the investor but they look at issues such as:

• Available real estate & cost.• Housing Prices (Does executive level housing exist if required.)• Industrial & Commercial properties (Serviced / Zoning / Brownfields.)• Industrial parks.• Development Incentives.

• Access to utilities and cost (Electricity, Water, Waste Treatment / Gas.)• Comparative tax structures (Often compared to other Jurisdictions both domestic and international.)• Building / development costs and processes (Red tape effectiveness of local

councils.)• Labour force / costs / level of unionization/ skills.• Access to transportation / markets.• Other key employers / competition (Supporting & Complimentary Industries.)• Population statistics (Often used for labour calculations / Strength of internal market / Regional statistics

are important.)• Infrastructure: education facilities / communications / airports / railways /

etc.• Current investment opportunities ( What exists / Future large opportunities (Ring of Fire.)• Your current economic strategy / Economic Strategic Plan (Does it support

investment.)• Effectiveness of all levels of government.


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Steps To Investment Readiness

Training

Information Gathering

Planning

Competing

Steps To Investment Readiness


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Successful investment attraction requires careful planning, preparation, & coordination.

Every community is at a different stage of preparation and has differing strengths and challenges.

Key steps to facilitate successful investment attraction.

Preparation is Key

Assets

Training

Market Study

Needs Analysis

Plan

Compete


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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 cases (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.

Can include regional municipalities, FN, EDO’s, private sector reps, real estate, municipal councillors.

Training can be arranged to be flexible in delivery.

Training


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Asset Inventory

A community needs to conduct an inventory of the assets that are available for use by investors:

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.

Think graphically when you design your inventory (good map, photograph, drawings.)

Consider various formats for your land inventory (computerized database, web sites.)

Include public properties in your land inventory. Make sure your land use planning supports your assets as a

competitive advantage:• Flexible official plan and zoning by-laws, can help

accommodate a range of new industrial and commercial uses.

Training

Assets


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Market Studies

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.

Can lead to change in economic makeup of community when the change is dramatic.

• Impact study.Important that these studies generate contact /

prospect lists that can be pursued.Try and keep prospect list to 1 or 2 key

opportunities.

Assets

Market Study

Training


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Needs Analysis

With 1 or more sectors identified as potential investors, perhaps a study of those sectors specific needs is required.

Your market study based on your asset inventory provides direction.

Now you 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 while others may be perceived and can be dealt with quickly.

Training

Assets

Market Study

Needs Analysis


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Strategic Plan

With the information gathered from your market studies and needs / gaps analysis you can now put together a plan to attract your defined target investors.

1. What are the identified “gaps” how will you fill them?

2. What is your “value proposition”?3. How will you get your message out to the

investors?4. What strategic alliances are needed gov’t,

regional / business?5. What funding can be accessed?6. What community resources need to be mobilized?7. Next steps (Familiarization tours / Trade shows /

Cold calls / Development of key networks.)

Training

Assets

Market Study

Needs Analysis

Plan

Compete


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Compete

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. Develop familiarization tours for investors.Respond to inquiries from site locators

promptly. Use the Ontario Investment Services site.

Training

Assets

Market Study

Needs Analysis

Plan

Compete


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Northern Communities Investment Readiness Program

• Supports community and regional initiatives.• Simple streamlined application process.

Financial support under the NCIR is provided for:• Up to 75% of eligible project costs.• Up to $10 K per eligible applicant.• Based on the scope and nature 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.• Additional funding available for projects of regional significance.


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Eligibility

Eligible applicants include:

Municipalities

First Nations

Economic Development Corporations

Partnerships of the above


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Final Thoughts

1. Dealing with Consultants• RFP good method of determining costs in advance of

application• Disclosure: Awarding of any contracts is conditional on

application approval• Terms of reference: Supply consultants with your terms of

reference up front. Essentially at the end of the day what is it you are expecting to receive that would trigger payment

2. Take advantage of the resources that exist in your community or region to develop applications. Specifically your MNDM regional officer.

3. Community Profile Site1.http://www.sse.gov.on.ca/medt/investinontario/en/Pages/commu

nities.aspx

http://www.sse.gov.on.ca/medt/investinontario/en/Pages/communities.aspx

http://www.sse.gov.on.ca/medt/investinontario/en/Pages/communities.aspx


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Contact Information

Guy PelletierNorthern Development

Officer

WawaTel: [email protected]

Joel LafranceNorthern Development

Officer

ChapleauTel: [email protected]

Regional Economic Development BranchMinistry of Northern Development and Mines

Serge AlaryNorthern Development

Officer

HearstTel: [email protected]

investment attraction and the northern community investment readiness program

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