Build [it] Here ANNUAL REPORT 2012
See the annual report video at
www.edmonton.com/2012report
Build [it] Here The spirit of Edmonton. It is something that unites us. Whether you are in the private sector or the public service, whether you are 25 years old or 65, and whether it is 30 above or 30 below outside, we all came to Edmonton in search of an opportunity to grow. And every Edmontonian chooses to stay here. Because we are building something here. Whatever your
is.
Your career. Your business. Your family. Your skills. Your life … your opportunity. We are issuing an invitation to the world, and say, “Come build
here.”
Cover photo (courtesy of City of Edmonton): Teamwork and attention to detail feature prominently in Edmonton’s north light-rail transit extension, currently under construction and scheduled to start running in 2014.
Contents 1
About Us 2
6 ii
ANNUAL REPORT 2012
2012 Economic Highlights 3
2012 Achievement Highlights
Summary of Financial Results 8 Board Members EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
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About Us
Edmonton Economic Development Corporation (EEDC) is a wholly owned not-for-profit entity of the City of Edmonton, governed by an independent board of directors and managed by an entrepreneurial team that understands that our customers are Edmonton’s current/ future business leaders and investors. EEDC is responsible for providing leadership to the economic growth strategy for Edmonton and the Capital Region through the following functions: • Supporting industry growth and diversification • Stimulating entrepreneurism and innovation • Marketing the city’s image in target markets • Managing the Shaw Conference Centre
Maintaining responsibility for these functions, EEDC works in partnership with the economic development system’s key stakeholders like the City of Edmonton, Edmonton International Airport, post-secondary institutions, the Government of Alberta, regional economic development agencies, Port Alberta, Productivity Alberta, Northlands and the Edmonton Chamber of Commerce to generate prosperity for industry and heighten Edmontonians’ standard of living. To realize our vision of Edmonton as Canada’s economic and industrial powerhouse, we will inspire a culture of entrepreneurship, innovation and competitiveness that forever differentiates our city. Our objective is to ensure Edmonton and the Capital Region outperform every major economic jurisdiction in North America consistently over the next 20 years.
• Boosting tourism, events and attraction • Enriching the Edmonton Research Park
Note to Readers This annual report for 2012 has been produced in two parts. This printed report complements a video that provides an overview of 2012 by Board Chair Peter Silverstone, and CEO and President Brad Ferguson. The video, in addition to this report and the full audited financial statements, can be accessed at www.edmonton.com/2012report.
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
ANNUAL REPORT 2012
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[2012] Economic Highlights 2012
2011
Labour Force1
727,500
709,400
3%
Employed2
693,200
671,000
3%
Unemployment Rate3
4.7%
5.4%
-0.7%
Inflation Rate4
1.1%
2.5%
-1.4%
Housing Starts5
12,837
9,332
38%
Value of Building Permits6
$3,419,353,800
$2,820,744,900
21%
Downtown AA Office Space ($ psf)7
$27.70
$25.00
11%
1
Labour Force - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual
2
Employed - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual
3
Unemployment Rate - Statistics Canada Labour Force Survey estimates, by census metropolitan area based on 2006 census boundaries, annual
4
Inflation Rate - Statistics Canada Consumer Price Index, annual percentage change
5
Housing Starts - Canada Mortgage and Housing Corporation
6
Value of Building Permits - City of Edmonton Monthly Building Permits Summary, Dec. 2012
7
Downtown AA Office Space - Avison Young Edmonton Office Market Report, Q4 2012 and Q4 2011
2
% CHANGE
ANNUAL REPORT 2012
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
[2012] Achievement Highlights Industry Development • Participated in June Consider Canada attraction mission (an association of 11 large municipal economic development agencies and the Government of Canada).
• Facilitated networking and relationship-building by bringing together and exposing potential partners to diverse initiatives, including:
• Developed a labour attraction program working with industry partners, targeting the US Pacific Northwest.
• Matching mentors and University of Alberta students in the field of nanotechnology.
• Continued to participate in the Federation of Canadian Municipalities’ economic development and democracy project in Ukraine through hosting of visitors, delivering professional development and sharing knowledge.
• Partnering with Government of Alberta to host 260 US State House of Representatives and State Senate members for their annual Council for State Government West meeting in Edmonton.
• Exposed senior and junior high school students to Edmonton-area industry and career opportunities, as well as a post-secondary education alternative, through a pilot field trip program, including construction, transportation, logistics and auto service sectors. • Continued partnership with Productivity Alberta to deliver supply chain workshops to help companies increase innovation and productivity.
• Leading visit by United Kingdom’s new Alberta-based Consul General and a UK science and innovation team. • Hosting inbound Chinese investment delegations. • Exhibiting at and taking part in industry trade shows inside and outside Canada. • Sponsoring targeted industry events and symposia. • Participating in outbound marketing and investment missions. • EEDC’s Kent McMullin was recognized as Economic Developers Alberta’s economic developer of the year and elected president.
Tourism • Hosted 32 familiarization tours for 207 travel trade representatives, promoting Edmonton as a destination. • Hosted eight tourism industry mixers attracting almost 700 people.
• Promoted Edmonton as a regional market destination through award-winning summer and winter campaigns, which targeted Alberta, northern British Columbia, Saskatchewan and Yukon and Northwest Territories.
• Promoted Edmonton as a leisure destination at 12 events and targeted marketplaces.
• Promoted Edmonton as a meeting and convention destination by taking part in 24 marketing events/ opportunities and trade shows throughout North America.
• Celebrated hospitality industry frontline workers with the 12th annual You’re Welcome Edmonton program, attracting over 1,500 nominations in 18 categories from 81 organizations.
• Led September mission to China focused on attracting Chinese visitors, increasing business ties and planning for 2013 World Ice and Snow Tourism Congress.
• Hosted Rendez-vous Canada, the Canadian Tourism Commission’s premier annual Canadian marketplace conference that attracted over 1,400 tourism professionals from around the world. EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
ANNUAL REPORT 2012
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[2012] Achievement Highlights Shaw Conference Centre • Hosted semi-annual Homeless Connect attended by over 3,000 guests with access to services ranging from dental care to optometry to employment assistance — supported by more than 400 community volunteers. • Undertook major refurbishments and renovations to reopen lower level meeting rooms for business in under 10 weeks, after flooding from severe summer storms damaged more than half the building. • Sous Chef Serge Belair won the Canadian Culinary Federation’s Chef of the Year challenge. • Partnered with Edmonton Public Schools on the third year of pARTnership Gallery, a year-round student art gallery located in Shaw Conference Centre. • Awarded the 2012 ROOPH Award (short for Recognizing Outstanding Organizations and People in Housing) by Homeward Trust for space, services and labour incurred in support of its homelessness reduction initiative.
• Named “Venue of the Year” by Meeting Professionals International Edmonton. • Launched an annual eco-report to the community, showing the building’s reduction in water and energy, and landfill diversion rates. • Brought around 100,000 delegates into downtown Edmonton through hosting 32 conventions, creating economic benefit for the area’s retailers, attractions, transportation services and more. • Created almost $51 million in economic impact in Alberta, with $39 million of that focused in Greater Edmonton. • Hosted more than half-a-million guests at over 700 events.
Event Attraction • Produced 34 event attraction bids or referrals, confirming 24 events worth 22,239 room nights and $6.5 million direct expenditure. • Co-led Edmonton’s bid to be a host city for 2015 FIFA Women’s World Cup, the world’s largest single sports event for women — resulting in Edmonton’s selection as one of six Canadian host cities.
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ANNUAL REPORT 2012
• Partnered with industry to confirm Edmonton as the starting point for the inaugural 2013 Tour of Alberta: Canada’s Pro-Cycling Festival. Sanctioned by the Union Cycliste Internationale, it is the international cycling circuit’s newest professional event.
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
[2012] Achievement Highlights Film Production • Launched the $10 million Edmonton Filmed Entertainment Fund with Los Angeles-based partner Kilburn Media to stimulate film activity in Edmonton through equity investment.
• Hosted seven visiting production companies scouting Edmonton as a potential filming location.
• Launched and awarded, in conjunction with Edmonton Arts Council, the inaugural $10,000 Edmonton Film Prize to Niobe Thompson’s The Perfect Runner shared with film maker Trevor Anderson’s The Man Who Got Away.
Quality of Life • Continued to increase community understanding of the importance of downtown and the growing momentum of downtown’s renaissance through the Downtown Vibrancy Task Force and related initiatives.
• EEDC’s John Ennis was selected for the 2013-14 Business Alliance for Local Living Economies’ Local Economy Fellowship program, one of 16 such local economy leaders in North America.
• Contributed to the City of Edmonton’s new WinterCity Strategy formulation.
• Developed and delivered instruction on quality of life and community pride as part of City Hall School program curriculum.
• Worked with local opinion leaders and City of Edmonton on advancing local independent business community’s interests and goals.
Marketing & Communications • Attracted over 684,000 unique visitors to www.edmonton.com, up almost 30 per cent from the previous year.
• Generated coverage of Edmonton in regional, national and international media worth $87.9 million in earned media value.
• Increased social media accounts following on average by 9 per cent.
• Organized 45 travel media visits for 117 participants, highlighting Edmonton’s offerings for their readers and viewers.
• Launched a hosting program as a service to support local organizations in their senior-level recruitment, provide a meaningful Edmonton experience and increase the likelihood of candidates’ relocation to the Edmonton area.
• Promoted the city’s festival calendar through the Live All Year program at Edmonton International Airport, exposing airport users and visitors to the arts and culture scene.
• Since arriving in August, CEO and President Brad Ferguson conducted 15 speaking engagements. EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
ANNUAL REPORT 2012
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]
Summary of Financial Results EEDC realized strong financial performance for 2012, ending the year with a $252,078 surplus on a modified cash income basis compared to the annual budgeted net zero cash requirement. Based on accounting policies used to prepare the audited financial statements, EEDC reported a net operating deficit of $400,172 compared to a budgeted deficit of $616,350. Revenues for the year were lower than budget but higher than the prior year. The Shaw Conference Centre’s revenues were lower due to business volume.
The City of Edmonton, EEDC’s sole shareholder, provided 36 per cent of revenue in 2012. Operating and program expenses were lower than budget and prior year. The Shaw Conference Centre incurred lower labour costs, and there were lower general operating costs in other divisions. For more detailed information, please review the audited financial statements at www.edmonton.com/2012report.
divisional Results for the year ended December 31, 2012
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Shaw Conference Centre
TOURISM DEVELOPMENT
Economic Development
Edmonton Research Park
2012 Total
City of Edmonton
$
2,990,000
$
4,083,000
$
4,381,000
$
882,000
$
12,336,000
External revenues
13,904,850
5,156,847
666,529
2,226,944
21,955,170
16,894,850
9,239,847
5,047,529
3,108,944
Operating and program expenses
16,850,523
9,379,796
4,934,068
2,033,000
34,291,170 33,197,387
Net amortization
-
-
-
1,194,446
1,194,446
Interest
64,788
-
-
234,721
299,509
16,915,311
9,379,796
4,934,068
3,462,167
34,691,342
Net surplus (deficit) for 2012
$ (20,461)
$ (139,949)
$ 113,461
$ (353,223)
$ (400,172)
Net surplus (deficit) for 2011
$ 87,144
$ 167,217
$ 113,803
$ (659,086)
$ (290,922)
ANNUAL REPORT 2012
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
Summary Financial Results for the year ended December 31, 2012 SUMMARY STATEMENT OF OPERATIONS
2012 Budget (UNaudited)
2012 ACTUAL
City of Edmonton
$
External revenues
22,359,486
21,955,170
20,980,799
34,695,486
34,291,170
33,066,799
33,854,678
33,197,387
31,876,490
1,093,783
1,190,309
Operating and program expenses Operating surplus before amortization and interest
12,336,000
840,808
Net amortization Interest
$
2011 (RESTATED)
12,336,000
$
12,086,000
1,158,546
1,194,446
1,158,546
298,612
299,509
322,685
1,493,955
1,481,231
(400,172)
$
1,457,158 Net deficit for the year
$
(616,350)
$
STATEMENT OF FINANCIAL POSITION
2012
(290,922)
2011 (RESTATED)
Assets Current assets
$
Long-term assets
16,129,484
12,255,768
10,058,910
$
12,619,188
Total Assets
$
28,385,252
$
22,678,098
9,321,052
$
10,024,843
Liabilities Current liabilities
$
Long-term liabilities
15,231,978
8,420,861
Total Liabilities
$
24,553,030
$
18,445,704
$
100
$
100
Share Capital and Net Assets Share Capital Net Assets Accumulated operations
3,832,122
4,232,294
-
-
$
3,832,222
$
4,232,394
$
28,385,252
$
22,678,098
Accumulated remeasurement gains or losses
Total Liabilities, Share Capital and Net Assets
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
ANNUAL REPORT 2012
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[
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Board Members Board of Directors Richard Brommeland
Mayor Stephen Mandel BSBA, MA
Quantiam Technologies Inc.
City of Edmonton
Robb Campre
Roger Palmer
Maskwa Consulting
LEAD Consulting
Phyllis Clark
Tracey Scarlett
University of Alberta
Alberta Women Entrepreneurs
Doug Cox
Peter Silverstone MB.BS, MD, FRCPC
Touchstone Holdings Ltd.
PHS Holdings
Paul Ingram CA
Barry Travers FCA
Rotating Right
KPMG LLP
JoAnn Kirkland
Richard A. Wong
Government of Alberta
Travel Alberta
Chris LaBossiere
Henry Yip P. Eng.
Yardstick Software Inc.
Nirix Technology
EEDC Advisors Simon Farbrother
Bob Turner BA, LLB, B.Comm., QC
City of Edmonton
Fraser Milner Casgrain
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ANNUAL REPORT 2012
EDMONTON ECONOMIC DEVELOPMENT CORPOR ATION
EEDC works with many companies and organizations, and supports many dynamic partnerships. Here are some of our key partners in 2012.
Edmonton Capital Region Tourism Partnership
Kilburn Media
Edmonton Economic Development Corporation World Trade Centre Edmonton 3rd Floor, 9990 Jasper Avenue Edmonton, Alberta, Canada T5J 1P7 780.424.9191 or 1.800.661.6965 info@edmonton.com www.edmonton.com