Economic Development Partnership Program

Grants 1999 Second Round - All Wards

The Economic Development and Parks Committee recommends the adoption of the following report (September 16, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Purpose:

This report seeks approval for the second round of the Economic Development Partnership Program grant allocations totalling $36,700.00; authorization for partial release of funds, as well as a time extension for first round recipients whose allocations are being held. The report discusses the principles and evaluation criteria applied to select grant recipients, summarizes the grants requests and makes recommendations concerning the allocations.

Funding Sources, Financial Implications and Impact Statement:

The allocations recommended in this report fall within Council's approved 1999 Municipal Grants budget of $42,693,100.00. The total 1999 budget for the Economic Development Partnership Program is $337,000.00. At its meeting of July 6, 7 and 8, 1999, Council adopted a staff report recommending grant allocations stemming from this program in the amount of $275,272.50. Council further directed staff to provide funding from this program to the Taste of the Danforth event. Subsequently, Greek Town on the Danforth BIA received $25,000.00 towards this event's tourism marketing component. The funds available for the Fall round were thus reduced to $36,727.50.

Recommendations:

It is recommended that:

(1)Economic Development Partnership Program grants totalling $36,700.00, be allocated to four projects, as set out in Appendix 1;

(2)the disbursement of the Economic Development Partnership Program allocations be conditional on satisfying the 1999 Economic Development Partnership Program goals and criteria set out in Appendix 2 and on project specific conditions set out in Appendix 4;

(3)first round applicants, namely the Apparel Industry Development Corporation and the Toronto Bio-Technology Business Incubator, be given an extension to November 1, 1999, to meet the criterion required to fully release their funding allocation, as detailed in Appendix 5; if these initiatives are unable to meet this criterion, the funds may be reallocated, subject to a future report for Council approval; and

(4)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The goal of the Economic Development Partnership Program (EDP) is to facilitate the start-up or expansion of projects that will provide substantial long term economic benefits to the City. The program provides for two categories of support: one time only projects; and developmental projects that are eligible for support for a maximum of five years with the maximum support in the fourth and fifth year set at 50 percent and 25 percent respectively of the level of support provided in the third year.

Priority is given to projects with a strong potential of becoming self sustaining within the five year time frame of the program and which involved substantive partnerships with the private sector or other levels of government. Applicants are required to submit a business plan and detailed budget demonstrating the economic benefit and long term viability or benefits of their initiative.

In accordance to Council's direction, staff are currently reviewing this program. The objective of the review is to determine how the program can best support the City's emerging economic development strategy and to ensure that it is delivered in the most effective and equitable manner. A report on the outcome of this review is scheduled for later in the Fall of 1999, so that any changes to the year 2000 program can be communicated to client groups prior to the year's end. The 1999 EDP Program guideline is attached to this report as Appendix 2.

Applications

A total of four applications were received for the second round, requesting $66,000.00, for a number of purposes, in the Tourism, Design and Information Technology Sectors. As the program is oversubscribed, staff have reviewed each proposal in detail and made recommendations based on compliance with the program objectives and the available funding. A summary of the applications is shown in Appendix 3. Details on each individual application, allocation criteria and conditions are provided in Appendix 4.

From the first round of applications approved by Council in July, there are three initiatives for which funds are being held subject to additional funding being leveraged from other sources, to ensure the project's feasibility. These projects are: Apparel Industry Development Corporation ($20,000.00), Toronto Bio-Technology Business Incubator ($50,000.00) and Women in Film and Television Mentor-Internship Program ($8,000.00). While the latter has fulfilled the conditions of the funds release by securing funding from private sources, the other two initiatives have requested a time extension as to date, they were unable to secure additional funding. The Toronto Bio-Tech Incubator has also requested a partial release of funds to audit potential facilities. Details of these requests and revised allocation conditions for these projects are provided in Appendix 5.

Evaluation Criteria and Principles

To ensure that all applications were dealt with fairly, each application was reviewed in detail to ensure that the purpose of the project is in keeping with the objectives of this program. This was particularly important because the requests for grants exceeded by $29,272.50 the amount available for the second round of this Program. Therefore, the evaluation process was guided by the same applicable principles used in the previous round of applications, namely:

(a)former recipients would not be eligible to receive an amount higher than the previous year, which would permit supporting new projects and gear the Economic Development Partnership Program towards supporting the economic development priorities of the amalgamated City;

(b)former recipients were required to demonstrate that previous allocations were used as intended by the Economic Development Partnership Program, otherwise their allocation was reduced according to the particulars of the project for which a grant is being sought; and

(c)on-going projects, such as, the Toronto Theatre Alliance, which under the existing criteria would be subject to a 50 percent reduction, will continue to be funded at the 1998 level, to be consistent with the criteria adopted by Council in the first round of applications.

Appendix 1 contains the funding history of each organization along with the proposed allocations.

Conclusions:

Staff are recommending that a total of $36,700.00 be allocated to four initiatives, as per the terms and conditions detailed in Appendix 4; that $14,000.00 be released to the Toronto Bio-Technology Business Incubator to undertake a facility audit; and that a time extension until November 1, 1999, be granted to both the Bio-Tech Incubator and the Apparel Ontario projects to allow them extra time to leverage additional funds from other sources as per the terms and conditions outlined in Appendix 5.

Given the oversubscription of this program for the second round, staff are also recommending that, should either of these organizations be unable to fully execute their projects by November 1, 1999, funds be reallocated, subject to Council approval, to more closely meet the requests by second round applicants.

Contact Names:

Ms. Alicia I. Bulwik, 392-3830; Ms. Brenda Librecz, 397-4700.

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 Appendix 1

Economic Development Partnership

Program 1999 - Second Round

Funding History and Recommended Allocations

  Summary Total

Approved Budget 1999$337,000.00

Recommended first round$275,272.50

Received by Taste of the Danforth25,000.00

Recommended second round36,700.00

 Remaining funds27.50

Total$337,000.00$337,000.00

Sept/99

 Insert Table/Map No. 1

Appendix 3 - Summary of Submissions

Appendix 4:

Applications and Allocation Recommendations - Second Round -

(1)Green Tourism Association - Millennium Fun Pack and Guide Book

The Green Tourism Association is a non-profit organization committed to establishing a sustainable urban green tourism industry in Toronto. Their efforts focus on marketing urban green tourism to tourists and residents, developing and supporting green tourism businesses and greening the tourism industry. Last year, this Association was the recipient of a $10,000.00 grant from the EDP program to develop The Green Map of Toronto with a distribution of 60,000. This Association is now requesting $20,000.00 to develop The Millennium Fun Pack and Green Tourism Guide Book as key cooperative marketing and development tools for 2000. The budget for this project is $113,780.00.

The Fun Pack would include the Green Tourism Map, a green Tourism Guidebook with green facts, tips, information, fun green products, and discounts and incentives designed to inspire a tourist (or a local resident) to go (or stay) greener. This product is intended to promote local businesses within the green tourism sector. While conceptual development of the Fun Pack is complete, prototype development will involve co-operation of supporting green businesses, suppliers, services and designers. This Association expects to achieve financial sustainability for this project through revenue generated by sales.

Given the limited funding available and that the City has already supported another green tourism project last year, staff are recommending a $5,000.00 grant to cover for the promotion of this project outside Toronto. Once the product is tested and measurable results are reported, additional funding may be considered next year should the proposal meet the criteria of the year 2000 grant program.

Recommendation: To allocate $5,000.00 for the promotion of the Millennium Fun Pack and Guide Book outside Toronto. The Green Tourism Association to receive support from the City's Tourism Development Officer to advance their goals in future endeavours. The City's support is to be acknowledged in all promotional materials and launching events. The recipient is to report back on long term economic benefits measurable results of this product prior to applying for additional funding.

(2)Smart Toronto - E-Commerce Forum

Smart Toronto is the Greater Toronto Area's leading business association for the information technology sector. It is a collaborative, not-for-profit member-based association whose mandate is to build Toronto as a centre for digitally enabled creation and distribution. Smart Toronto works to achieve the common goals of its members in helping Toronto and area be prosperous in the Information Age.

Smart Toronto is requesting $10,000.00 to support the Smart Toronto's E-Commerce Forum, to be held in downtown Toronto, in February 2000. This one-time request would support a stand-alone event designed to kick-start a formal discussion on e-commerce in Toronto. Because Toronto has one of the lowest adoption rates of e-commerce activities of any major North American city, this event would be a good vehicle to raise awareness on the advantages of e-commerce as a means to increase economic benefits. Given the City of Toronto's strengths in finance, retail, and industry, the potential economic benefits of robust e-commerce activities are even greater.

The Forum will see 50 of the top thinkers and practitioners of E-Commerce, gather for a full day to define and analyse issues affecting the development of E-Commerce in Toronto, to develop a preliminary action plan and to identify those partners (both public and private sector) critical to developing and expanding Toronto's e-commerce expertise. The Budget for this project is $40,000.00.

Given the limited funds left over from this program for the second round of applications, staff are recommending a reduced level of support for this project with the understanding that if additional funds become available prior to this year's end, this organization will be given further consideration for additional funding to more closely meet its request.

Recommendation: To allocate $5,700.00 towards speaker fees and audio visual equipment set up. The City's support is to be acknowledged in all promotional materials as well as throughout the event.

(3)The Design Exchange - SEE Design Leaders Project

The Design Exchange (DX) is a non-profit educational organization committed to promoting a greater awareness of design and its indispensable role in fostering economic growth, innovation, cultural vitality and sustainability. It is Toronto's leading design research, exhibition and promotion centre. DX is requesting $20,000.00 to develop a five year pilot project to stimulate a more extensive use of design as a strategic business tool, by small to medium size companies in the Toronto marketplace. The project budget is $80,000.00, $30,000.00 of which would be contributed in kind by DX.

This project, called SEE Design Leaders, is based on the assumption that Toronto companies have a hidden resource (design) that could help to establish and sustain competitive advantage well into the next century. By applying design to product development, corporate identity, environments and experiences, local companies from key industry sectors can more sharply define and defend their positioning against both Canadian and foreign competitors. They can also improve their chance of success in launching new products and services in foreign markets.

The project would involve ten Toronto companies from a range of industries to reflect design opportunities in a variety of sectors. For each company, DX will conduct a design audit, develop design-led recommendations, act as project advisor and liaison with design companies and conduct a follow-up review to evaluate the impact of the design initiative on specific business goals. Each company would pay $3,000.00 for this service.

Given the limited amount of funding available for this round, staff are recommending a reduced allocation to start off this project. This initiative should be given further consideration should additional funds become available prior to the year's end.

Recommendation: To allocate $10,000.00 as seed money for the launching, advertising and promotion of this project. DX staff to take the lead role in soliciting firms and developing the project. The City's support is to be acknowledged in all promotional materials as well as in the company calls.

(4)Toronto Theatre Alliance - TATOUAYS Brochures and Promotional Video

The Toronto Theatre Alliance (TA) is a non-profit organization representing Toronto's 200 professional theatre and dance companies. TA acts as an umbrella service organization, with established ties in the tourism industry sector, providing marketing support and industry wide advocacy on behalf of its members. The Alliance also administers Toronto's Theatre Awards - the Dora Mayor Moore Awards; assists small theatre companies in developing multi-cultural theatre and theatre for people with disabilities; and runs TATOUAYS, Toronto's "half-price tickets" booth, 85 percent of whose customers are tourists. The TA has an operating budget of $476,906.00 for 1999.

TA is seeking $16,000.00 for two initiatives: $6,000.00 for the production of promotional brochures targeted at the convention trade and $10,000.00 for the development of a promotional video. In anticipation of the forthcoming opening of the TATOUAYS permanent home on the new Dundas Square, TA is attempting to make its services more accessible to a wider tourist audience. As a pilot project in 1999/2000, new brochures will be created for distribution to targeted conventions, their participants and planners. The budget for the brochures is $24,000.00.

In response to requests by Canadian embassies abroad, travel agency associations, tour operators and television channels such as CAN (Travel Guide), TA is proposing to produce a 10-minute video featuring theatre venues of architectural interest such as the Elgin Winter Garden Theatres, the Princess of Wales Theatre and Roy Thompson Hall. The video would also illustrate nightlife in the downtown core with shots of the theatre and concert hall marquees and audiences on Yonge, Front and King Streets. Discussions are being held with the Ontario Ministry of Citizenship, Culture and Recreation to support the production of this video. It is estimated that the production of this video would cost $80,000.00.

Recommendation: To maintain the same level of support as 1998, by allocating $16,000.00, of which $6,000.00 are for the production of T.O. TIX brochures and $10,000.00 for the production of a promotional video. In keeping with the criteria of this program, an effort should be made to showcase theatre and entertainment venues across the city in both the brochures and the promotional video. The City's support is to be acknowledged in all promotional material.

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Appendix 5:

Revised Allocation Recommendations - First Round

(1)Apparel Industry Development Corporation

A $20,000.00 grant was approved to support the implementation of the Apparel Industry Development Corporation, subject to sufficient funds being leveraged to launch this project by September 4, 1999. This initiative, put forward by the Apparel Manufacturers Association of Ontario (Apparel Ontario), on behalf of a number of organizations in the apparel sector, would address the strategic need for technical skill development and support in the apparel sector with the provision of technology-based services. This project was anticipated to be launched this Fall.

Apparel Ontario has filed a request for a time extension to allow them to secure funding from other sources to ensure feasibility of the project. Given that Council approval is required to reallocate funds, staff recommend that funds be held until November 1, 1999, to allow for their reallocation within this fiscal year, should Apparel Ontario fail to secure the project.

Recommendation: To continue holding $20,000.00 subject to sufficient funds being leveraged to launch this initiative by November 1, 1999. Should Apparel Ontario fail to secure this project by this date, these funds may be re-allocated to another project, subject to Council approval.

(2)Toronto Bio-Technology Business Incubator

The Toronto Bio-Tech Business Incubator Advisory Board was granted $50,000.00 for the creation of a biotechnology business incubator at the currently empty Princess Margaret Hospital site on Sherbourne Street, Toronto. This allocation, however, was subject to the applicant leveraging sufficient funds to launch this initiative by September 4, 1999.

Since approval of this grant, the Bio-Tech Business Incubator Advisory Board has been exploring other potential sites for the development of the incubator. Mr. Borys Chabursky, the Toronto Biotechnology Incubator CEO, is now requesting that the City release $14,000.00 to undertake a technical audit of the buildings being considered for the development of the incubator and is asking that the remaining $36,000.00 be held until a facility is secured.

Recommendation: To release $14,000.00 to undertake technical audits of potential buildings for the development of the bio-tech incubator and to continue holding $36,000.00 until November 1, 1999, subject to the facility being secured and sufficient funds being available for the redevelopment of the facility to suit the requirements of a bio-technology incubator. Should a facility not be secured and funds not be leveraged to make this initiative feasible by that date, the held funds be reallocated subject to Council approval.

(3)Krinos Foods Taste of the Danforth-Festival

The Krinos Foods Taste of the Danforth is organized by the Greek Town on the Danforth BIA and is in its sixth year. Greek Town is an incorporated non-profit organization whose mandate is to promote business on the Danforth and to beautify the area. This event has been growing over the years, to the point that it is becoming a tourist attraction. From an attendance of 5,000 in 1994, it is estimated that 800,000 people attended this year's event.

At its meeting of July 6, 7 and 8, 1999, Council directed that the Economic Development Partnership Program be accessed to provide assistance to this event. Subsequently, staff met with Ms. Sue Graham-Nutter, the Festival's Executive Director, to discuss financial needs to promote this event outside Toronto. The Festival's budget is $508,000.00, $100,000.00 of which represent the tourism component.

In keeping with the objectives of the EDP Program, it was determined that Greek Town on the Danforth BIA be provided $25,000.00 to cover for the 25 percent tourism market development budget allocation to promote the Taste of the Danforth event.

(A copy of Appendix 2 referred to in the foregoing report was forwarded to each Members of Council with the October 4, 1999 agenda of the Economic Development and Parks Committee and a copy thereof is also on file in the office of the City Clerk.)

The Economic Development and Parks Committee also submits the following communication (September 30, 1999) from Ms. Anna Gibson, Acting Director, Green Tourism Association:

Thank you for allocating the Green Tourism Association $5,000.00 for the Millennium Fun Pack project, an important part of our overall program of attracting eco-tourists to Toronto. Your generous support from last year and this year's funds are greatly appreciated. They have had the desired effect and resulted in requests for the Green Map of Toronto not only from Ontario, but also other parts of Canada, the United States and as far away as Australia.

We have reviewed the Economic Development Report and understand the difficulty of allocation when there are so few funds. However, we would like to be considered for reallocation of funds, should any become available from this round. Current funds have been earmarked for promotion outside of Toronto and any additional funds would be helpful in ensuring we have an attractive and professional product. Funds available for printing would ensure an increase in the number of inbound tourists that can be reached, promoting the green tourism options available in Toronto and encouraging participation in our local economy.

We look forward to bringing the Committee up-to-date on the success of our projects at the November meeting.