Island Coastal Economic Trust

1
Island Coastal Economic Trust

• Small Business
• Economic Development
• Sector Overview

2
Sector History

• 40 years
• Growth and Development
• Baby boomers enter and actively involved
• Jobs created often not enough
• Infrastructure built
• Tax bases established

3
Current Condition

• 363,000 Businesses in BC (2004)
• 98 Small Business
• Primary provider private sector jobs
• Provider of half of all jobs in province
• Vital source of innovation
• 95 High Tech businesses are small businesses

4
Current Condition

• Economy is Hot
• Unemployment 30 year low
• Employment growing sharply
• Wages rising
• In-migration is happening
• 96 VI businesses plan to expand

5
Sector Constraints

• Ability to maintain what we have grown
• Aging population Hot economy Labour shortages
• BCs older demographic harder hit

6
Sector Constraints

• 70 of businesses to transition in 10 years
• Similar number of workers plan to reduce or
  eliminate commitment to labour force
• Fewer new entrants to labour force
• Recent years 225,000 new entrants annually
• 40,000 new entrants by 2010
• Not enough young people to maintain size or
  contributory capacity

7

• If youre breathing, Canadas West wants you.
• Avery Shenfield CIBC World Markets

8
Sector Constraints

• Upward hourly wages
• Union 0.6
• Non Union 6.6
• 15 24 years 5.8
• 25 54 years 3.1
• 55 plus 6.7
• Pressure on businesses with low margins
• Helps in-migration
• (July 06 over July 05)

9
Sector Constraints

• Loss of talent or brain drain
• Baby boomers retiring
• Minimal succession planning
• Work environments pulling in new entrants
• Ways we think our habits.
• Paradigm shift
• 96 of businesses plan to expand
• Normal market adjustments will not rectify
  situation

10
For Opportunities

• Visualize
• A much smaller workforce
• Think
• Retain and Maintain
• Recognize
• Value of baby boomer work ethics
• Understand
• Motivations of Generations X and Y

11
For Opportunities

• Plan
• Update Community Plans
• New demographic realities
• Reduction in business tax base
• Succession Planning
• Government services amalgamation
• Be Cautious
• Labour requirements
• Encourage and Embrace
• Strategic Growth

12
Investment Considerations

• Attraction of labour pool
• Financial Incentives
• Marketing Initiatives
• 2010
• Technology
• Knowledge and Education
• Business succession planning
• Fast tracking accreditation

13
Investment Considerations

• Infrastructure
• Housing initiatives and incentives
• Sports facilities
• Rapid transit
• Island Corridor
• Fast ferry
• Power Upgrades

14
Island Coastal Economic Trust

• Project Management

15
ICE-T Mandate

• Invest, manage and lever ICE-T funds
• Support investment in Industrial Sectors
• Publicly Report
• Paper, process and accountability

16
Project Management

• Pre ICE-T Adjudication
• Proponent communications
• Paper preparation for ICE-T adjudication
• Errors, inconsistencies, concerns
• Due diligence
• Funding legitimacy
• Regulatory compliances

17
Project Management

• After ICE-T Adjudication
• Ongoing project monitoring
• File maintenance
• Communication with ICE-T and proponent
• Prepare reports

18
Project
CONSULTATION
19
Community Futures as Project Managers

• Advantage
• Economic Development Agencies
• 20 year history
• 34 offices in BC
• 8 in Island Coastal Region
• Local knowledge, experience and capacity
• Face to face client service delivery
• Existing partnerships and memberships
• EDABC, VIEDA, VIEA, Chambers

20
CF as Project Managers

• Partner with all levels of government
• Potential leverage with ICE-T funds
• Piggyback on existing programs
• Efficient operational costs
• Knowledge of government reporting,
  accountabilities, audit and evaluation
• Track record in commercial lending

21
Recent Experience and Success

• Multi Year Project
• 1145 Applications Processed
• 475 Project Assessments Prepared for Adjudication
• 145 Projects Approved
• 50M Project Funding Approved
• 145 Environmental Reviews Completed
• 140 Communities Benefited
• 36 Re-payable Projects
• 95M Funds Leveraged
• 145M Total Investment
• No one went to Jail

22
The Art of the Deal

• All Projects Must
• Meet determined and intended goals
• Be accountable
• Be carried out within approved timeframes
• Funding Options
• Non Repayable
• Repayable

23
A Non-Repayable Deal

• Scenario 1
• ICE-T to be Levered
• High degree of trust and comfort
• Monitoring and reporting schedule in place
• potential to be fast and relatively easy
• minimal operating resources
• -/ depletes ICE-T assets

24
A Non-Repayable Deal

• Scenario 2
• ICE-T wishes to Lever its
• Desire/need to work with others
• Capacity, time and ability to work deal
• ICE-T owns responsibility, paperwork, monitoring
  and reporting
• Non-repayable attracts partnerships/leveraging
• - uses considerable human resources
• -/ depletes ICE-T assets

25
A Non-Repayable Deal

• Scenario 3
• ICE-T to Complete Deal
• ICE-T owns responsibility, paperwork, monitoring
  and reporting
• Potential quick and positive results
• - may use considerable human resources
• -/ depletes ICE-T assets

26
A Repayable Deal

• Repayable Contributions
• Added responsibility to generate revenue
• ICE-T owns responsibility, paperwork, monitoring
  and reporting
• Repayment terms realistic and meet ICE-T
  timeframe
• ICE-T has mechanism and ability to receive
  payments
• ICE-T needs to attach security

27
Repayable Deal

• - Best laid plans
• - Difficult to lever dollars
• - More labour intensive
• - Repayment schedules may be lengthy
• - ICE-T reputation
• - ICE-T assets retained

28

• Island Coastal Economic Trust is a Tremendous
  Asset to Region
• Community Futures is poised
• to help where it can
• Thank you