Employment Lands ‘Securing our Prosperity” Council Workshop

1. Employment Lands ‘Securing our Prosperity” Council Workshop

2. Burlington’s Strategic Plan • Nurture an innovative business community • Create employment for people of all ages • Number of people working in knowledge-based jobs • Develop a financial strategy aligned with the Strategic Plan • Increase the number of people both living and working in Burlington

3. Agenda • The Catalyst – Why Are We Doing This? • Our Approach – Business Case Framework • Trends and Market Profile • Opportunities/Challenges • Being a Game Changer • Introduction to Area Strategies • Next Steps

4. Why are we doing this…. • Declining Revenues • Increasing Costs • Slow Population Growth • Utilize current capital investments (all government levels)

5. The Catalyst • Low assessment growth may result in the need for more aggressive tax increases over the mid to long term • Costs of maintaining residential development exceeds the tax revenues collected • 25% of tax revenues collected come from non residential sources • 18% commercial (retail/office) and 7% industrial • There is a shortage of shovel-ready employment land • We need to do things differently……

6. Our Approach - Business Case Framework

7. Trends Population Growth Age Trend • Burlington’s total population has been increasing, to approximately 174,000 in 2011, and is projected to grow to 186,000 by 2031. • Burlington’s population growth rate remains lower than the rest of Halton Region and is projected to flatten out through to 2031. • Burlington’s population growth is primarily taking place amongst the seniors population Burlington’s population growth has been moderate with the senior population growing at a faster rate than the working age group.

8. Real Estate Office Vacancy & Absorption Industrial Vacancy & Absorption • The City’s 5 year office vacancy rates for the existing built inventory is 10.8% and has historically exceeded the GTA average (6.9%) • Given current market conditions, this trend is estimated to continue • The City`s 5 year industrial vacancy rates for the existing built inventory is 9.6% and has historically exceeded the GTA average (6.2%) • Given current market conditions, this trend is estimated to continue

9. Assessment Growth Non-residential assessment growth has almost flat-lined

10. New Construction New Industrial, Office & Retail Construction by Floor Area in sq. ft. Low to moderate growth in the office and industrial sectors

11. Opportunities/Challenges • Assessment is growing at a rate less than inflation • The amount of taxes collected from non-residential sources account for 25% • Note: costs of maintaining residential development exceeds the tax revenues collected • The city is migrating towards residential build-out which will impact tax revenues • We have a shortage of shovel ready vacant employment land • Moderate to low construction growth in the office sector • Infrastructure investment is required to support intensification • . Strategies need to be put in place to moderate tax and service levels

12. Options to Consider • Expand to our Rural Areas • Increase Taxes • Implement targeted Service Adjustments • Intensification • Partnerships

13. Become a Game Changer • Develop Targeted Area Strategies • Comprehensive Financial (i.e. triple bottom-line) Analysis • Partner with Market Players to Attract New Business Development • Develop and Implement Aggressive Marketing & Sales Plans • Engage Other Government Bodies to Target & Fund required Infrastructure Improvements

14. Current Approach • Allow the market to drive development and opportunity • Focus on marketing the city holistically without identifying specific area strategies • Stronger focus on business retention versus attraction • Use our best planning estimates as our roadmap to growth

15. BEDC’s Strategy

16. Employment Land Vision • Ensure employment lands are critical to the economic and social viability of the city • 100% Shovel and Market Ready • Positioned as a place where businesses want to stay and expand, and new businesses want to locate • Developed more intensively - greater land use efficiency • Move up the economic value chain – better quality of jobs • Reflect principles of sustainability

17. BEDC’s Economic Growth Objectives • Financial: • Grow the city’s non residential tax levy revenues by 2% per year • A 60% increase in job growth from current targets by 2031 • Social: • Growth in high quality jobs from 41% to 60% within 20 years • 50% of all new jobs are occupied by Burlington residents • An accelerated employment density target from 41 jobs/hectare to approximately 59 jobs/hectare • Environmental: • Healthy community • Preservation of the rural area • Reduction in the city’s carbon footprint

18. In 20 Years we will have… • Intensified employment areas • Maximizing existing infrastructure that supports & encourages sustainable growth • Considered the “Go To” place to grow and/or expand your business • Sustainable growth in the city’s non residential tax levy • Moderate tax increases • 29,000 new jobs in Burlington Vibrant and Healthy Economy and Community where People Live & Work

19. 5 Strategic Employment Districts

20. QEW Central Corridor - North Service Road MarketBronte Meadows403 West Corridor – King Road/Aldershot Market

21. Our Plan Moving Forward… • Engage the market to validate these strategies • Re-align our resources to ensure we have the structure and tools in place to “make it happen” • Work with market players to co-develop our sales and marketing plans • Realign our performance measurement reporting to the new objectives • Regular growth plan updates to BEDC’s Board • Continued collaboration and dialogue with market players and potential new businesses

22. To Summarize… • 1. Why are we doing this? • Create a healthy, vibrant and sustainable community • A place where our citizens can live and work • Effectively manage future tax increases through strategic decisions • Burlington is considered the “Go To” city to grow and/or expand your business • Control our future as best we can • Strengthen our relationship with our business community • 2. Can we do this? • YES • 3. How do we do this? • Understand the challenges and opportunities • Refocus our efforts on outcomes and growth • Work with our market players to delivery the strategies • Ensure our services support our growth objectives • Stronger relationship amongst government, industry and educational institutions

23. Our Recommendation… • BEDC requests that Council direct staff to consider this approach and objectives as part of the criteria for developing an employment lands policy as it completes Phase II of the Employment Lands review.