Bonnyville Regional Economic Development Plan

Bonnyville Regional Economic Development Plan December 2020 M.D.B Insight Inc.

Contents Executive Summary......................................................................................................................... 2 Introduction .................................................................................................................................... 5 Overview ............................................................................................................................................. 6 Project Background............................................................................................................................. 6 Economic Context ............................................................................................................................... 6 Methodology ...................................................................................................................................... 7

Where Are We Now? ...................................................................................................................... 8 Background Review & Common Trends ............................................................................................. 9 Baseline Economic Analysis and Investment Readiness Assessment............................................... 10

Where Do We Want to Go? ......................................................................................................... 17 Summary of Consultation Findings ................................................................................................... 18 SOARR Assessment ........................................................................................................................... 23 Articulating the Region’s Value Proposition ..................................................................................... 28

How do we get there? .................................................................................................................. 43 Action Plan ........................................................................................................................................ 45 Performance Measurement ............................................................................................................. 59

Technical Appendix ....................................................................................................................... 63 Cover Photos: MCpl HJL MacRae, Copyright: ©2017 DND-MDN Canada Public domain: wikipedia.org/Quoideneuf87

MDB Insight – Bonnyville Regional Economic Development Plan

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Executive Summary

MDB Insight – Bonnyville Regional Economic Development Plan

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Executive Summary Sunrise is a time for reflection. After a night’s rest, the rising sun signals a new beginning, a commitment to a day ahead of hard work, dedication, and accomplishment. The sun is also rising on the economic future of Bonnyville region. By embarking together on a new beginning, by approaching the challenge of economic development as a team, the Town of Bonnyville and the Municipal District (M.D.) of Bonnyville are sending positive signals to their citizens and businesses. The message is simple: join us in creating a bold future for our region, one filled with promise and prosperity.

The Bonnyville Regional Economic Development Plan is a road map for the short term and long term, with specific directions to reach the desired destination: a brighter future. After a detailed analysis of the local economy and its business drivers, and thorough consultations with community leaders, business owners, residents, and experts, a step-by-step outline has emerged that builds upon the strengths, aspirations, opportunities, risks, and results identified by the community.

Here are the quick wins that the Bonnyville region can achieve in a short period of time: 1. Immediately put the policies, protocols, and promotional tools in place to amplify your joint commitment to economic development services. Double-check your approval procedures to make sure the stage is set for business successes, not hurdles.

2. Through Business Retention and Expansion efforts, continue your work on understanding the opportunities, plans, and challenges of your major employers and high-growth businesses. Reach out, visit them, connect them to each other, and offer information and services of value to them.

3. Move now to develop publicly owned tourism assets, specifically the M.D.’s recreational properties, by creating exciting overnight tourism experiences that will be positioned for success when the pandemic is over.

4. Increase sales of local products, services, and experiences by promoting “Buy Bonnyville” campaigns aimed at monetizing new sources of revenue for small businesses and farmers.

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5. Work together with others to create a team of Bonnyville business champions, creating an atmosphere of ambition, support and trust that will inspire a network of momentum.

These are the broad strokes of immediate concern for Bonnyville’s economic future. They are foundational pieces which can be activated relatively swiftly and have a positive return on the time that is invested.

While spending two-thirds of the working day reaching for the quick wins, one-third of the day should be dedicated to preparing for goals on the horizon. There are elements to this journey that will test a community’s ability to tolerate a long-haul effort.

Traditional industries in the Bonnyville region – energy, agriculture, and retail trade – are in transition, affected by changes in global markets, technology, and other factors. A community as small as Bonnyville may have little influence over these transitions, but the effort needs to be spent on what can be swayed: 6. Enthusiastic local farmers, agri-businesses and food producers can be identified during Business Retention and Expansions efforts and connected to provincial and industry innovators related to proteins and agriculture technology.

7. “Buy Bonnyville” initiatives can move further afield, by matching farmers and food producers to grocery chains and chefs in urban markets, creating new flows of revenue into the community.

8. The battle for consumer spending is now online, so understanding retail assets in Bonnyville and identifying gaps in products and services are important next steps in revitalizing downtown Bonnyville. Inspiring businesses to reimagine what they are selling will be the challenge of all small, rural communities.

9. Oil and gas extraction has a future in Bonnyville, but the ability of the Town and the M.D. to influence this enormous economic driver is limited. Staying current on programs, alternative energy production, and transition initiatives for the workforce should continuously be top of mind.

10. The massive investment at CFB Cold Lake in the Future Fighter program will occur on a financial trajectory that is familiar to major, multinational corporate players. Remaining mindful of the local procurement opportunities that the airbase provides will be necessary, as well as helping local businesses understand how to take advantage of them.

Implementation of the Bonnyville Regional Economic Development Plan is the next step in an exciting journey for the community. Stay united, support your businesses, and invest in what makes your community proud.

Be bold, Bonnyville.

MDB Insight – Bonnyville Regional Economic Development Plan

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Introduction

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Overview This Strategy represents the Town and M.D.’s collective recognition that partnerships are essential for the region’s future economic success. Beyond the completion of this Plan, this acknowledgement should be celebrated as an important win. Municipal leaders should be confident that the three strategic objectives outlined in this Regional Plan offer a unified vision and realistic road map to an economically vibrant future.

The Municipal District and Town wanted an economic development plan that will strengthen the economic base of the region and contribute to sustainable prosperity for residents and businesses. The Plan will set the future direction for economic development in the region to increase opportunities for business growth, the establishment of new enterprises and industries, and increase employment opportunities.

This Plan offers a concrete path forward that addresses the need for economic diversification – to reduce local reliance on the volatile oil and gas sector, which underpin both the Town and M.D.’s economy. On that note, it is important to highlight that economic diversification does not mean abandoning the oil and gas sector but instead transforming it and other economic drivers to create a more sustainable, diverse, and thriving regional economy. This Plan also acknowledges that time and money are finite, and there is a limit on what the Town and M.D. can realistically achieve in five years. Therefore, the three strategic objectives and corresponding actions have been prioritized and tailored to be as realistic and action oriented as possible. The intention is that this Plan becomes a living, breathing document that is actively used by both municipal staff and external stakeholders to guide future economic development decision making.

Project Background The M.D. of Bonnyville secured funding for the Regional Economic Development Plan in late-2019 after the M.D. applied for and won a Community and Regional Economic Support (CARES) program grant from the provincial government. A Joint Regional Economic Development Committee was later created to help guide both Councils on developing the scope of work, selecting consultants, and monitoring progress throughout the development of the project.

Economic Context The oil and gas sector has been a fundamental driver of economic growth for the Town and M.D. of Bonnyville. For example, the region is home to over 11,600 active oil and gas wells and 184 mining, oil and gas businesses as classified by industry1. However, the multi-year downturn in oil and gas prices

1

Statistics Canada Business Counts, June 2020. See Baseline Economic Analysis within the Technical Report.

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have created extreme challenges for residents and business owners. The situation is one of the underlying reasons for the creation of this Regional Economic Development Plan. Other critical economic drivers include the military, agriculture, tourism, and retail and services. Across Canada, COVID-19 has negatively impacted the economic performance of many sectors and overcoming this challenge has distracted some communities from looking over the horizon to future opportunities.

Methodology In drafting the Regional Economic Development Plan, MDB Insight utilized a four-phase process, as seen in the figure below.

Figure 1: Project Methodology

Where are we now? – The research stage of the project focused on understanding the regional context, including economic drivers, important completed projects or projects under development, a baseline economic analysis focused on socio-demographic trends, and an investment readiness assessment.

Where do we want to go? – During this stage, a summary of the remaining consultation efforts was provided, including the business and resident survey, feedback from the three community workshops and advanced reconnaissance interviews. A SOARR analysis (Strengths, Opportunities, Aspirations, Risks, and Results) was then created, summarizing the key themes from the first stage of the consultation process.

How do we get there? The project’s final stage involved taking the findings from the consultations and SOARR analysis and drafting three strategic objectives. A selection of Future Directions Workshop was then conducted with the Regional Economic Development Committee to obtain feedback on the Plan. Additional deep-dive interviews were conducted with industry experts to refine further and align recommendations.

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Where Are We Now?

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A tactical review of the previous strategic plans, economic-related documents, and planning and other strategies was conducted. This section summarizes themes from the initial consultation efforts and highlights from the baseline economic analysis and investment readiness assessment.

Background Review & Common Trends A detailed review of all relevant municipal reports and policy documents was conducted for the Bonnyville Regional Economic Development Plan. The documents were compared to uncover areas of thematic overlap. The policies have been catalogued according to common themes to observe patterns – in essence, to find the “common threads” among them.

The following observations are useful. They highlight themes that are strongly represented in the current internal policy framework – where there is alignment with external policies in areas of importance. The analysis also points out where the municipal policy framework is lacking. If these gaps represent key objectives or priorities that are identified through the research and community engagement process, they heighten awareness for further examination to ensure effective alignment with future priorities.

Figure 2: Themes from Background Review

Business Attraction and Retention

Environmental Protection

Tourism Marketing and Promotion

Reducing Red Tape / Internal Efficiencies

Business Planning and Support

Oil and Gas

Capitalising on Underutilised Assets

Military Procurement

Partnership Development

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Workforce Development

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Baseline Economic Analysis and Investment Readiness Assessment Business Characteristics Assessment In this assessment, businesses in the Town and M.D. were profiled by total employee numbers, size of business establishments by employees, and relative concentration of industry clusters. Location Quotient (LQ) was used when profiling industry sectors, as it showcases how concentrated a particular local industry is relative to the national average. In essence, it can reveal what makes a particular region “unique” (see Figure 3). Figure 4 on the following page shows the concentration and percentage for the Town’s top 10 industry sectors based on 2-digit NAICS and their corresponding LQ. The size of the bubble represents the number of businesses within the industry as of June 2020.

Figure 3: LQ Classifications

LQ Score

LQ Classifications

What does it mean?

LQ greater than or equal to 1.25

Indicates that the community has a ‘high’ concentration of businesses in this industry compared to the province as a whole.

‘High’ LQ’s generally indicate a competitive strength for the region and potentially opportunities for expansion or diversification.

LQ lower than 1.25 and higher than 0.75

Indicates industry concentration in the community is ‘on par’ with the province as a whole.

LQ lower than 0.75

Indicates that the community has a ‘low’ concentration of businesses in this industry compared to the province as a whole.

MDB Insight – Bonnyville Regional Economic Development Plan

‘On par’ LQ’s generally indicate important local industries that are relatively stable. If investment is prioritized they could turn into important economic drivers.

‘Low’ LQ’s could indicate opportunity areas as the industry is performing sub-par. Greater resource allocation is normally needed to improve the competitiveness of the industry.

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Town of Bonnyville’s Economy Comparative Strengths – Mining and oil and gas extraction has the largest LQ of 3.48, indicating it is a comparative strength. It is also the 4th largest sector with 137 businesses or 8% of the total.

Construction (LQ of 1.30), and other services (except public administration) (LQ of 1.34) are also competitive strengths for the Town. Public administration (LQ of 1.41) is indicated as a strength despite having only four businesses.

On Par – Notable sectors on par with the province include retail trade, transportation, and warehousing and administrative and support, waste management and remediation services sectors.

Comparative Weaknesses The professional, scientific and technical services sector (LQ of 0.66), health care and social assistance (LQ of 0.64) and manufacturing sector (LQ of 0.66) are also comparatively weak (e.g. LQ below 0.75). These sectors could represent opportunity areas for improvement within the economic development plan.

Percentage of Total Businesses (%)

Figure 4: Town of Bonnyville Top 10 Industry Sectors Base on Size and LQ

Real estate and rental and leasing, 248 Professional, scientific and technical services, 167

60%

50%

40% Construction, 272

30%

Other services (except public administration), 174

20%

Transportation and warehousing, 132

10%

Retail trade, 123

Agriculture, forestry, fishing and hunting, 117

Mining and oil and gas extraction, 137

Health care and social assistance, 74 0% -0.50

0.00

0.50

1.00

1.50

2.00

2.50

Administrative and support, waste management and remediation services, 78

3.00

3.50

4.00

LQ as a factor of the Province

Source: Canadian Business Counts, June 2020

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M.D. of Bonnyville’s Economy On this page is the same analysis for the M.D.’s top 10 industry sectors based on 2-digit NAICS and their corresponding Location Quotients.

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Comparative Strengths – Agriculture, forestry, fishing, and hunting have the largest LQ of 4.75, indicating comparative strength. It is also the largest sector with 401 businesses or 43% of the total.

Like the Town, mining and oil and gas extraction is also an important sector, representing 47 businesses (5% of total) and is comparatively strong with an LQ of 2.22.

▪

On Par – Construction (LQ of 1.02), educational services (LQ of 0.97) and other services (except public administration) (LQ of 1.04) were sectors that were on par with the province.

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Comparative Weaknesses – Notable weak sectors (e.g. LQ of below 0.75) included the manufacturing (LQ of 0.35, 6 businesses), wholesale trade (LQ of 0.51, 11 businesses), professional, scientific and technical services (LQ of 0.35, 47 businesses) and health care and social assistance (LQ of 0.18, 11 businesses). These sectors may represent opportunities for improvement.

Figure 5: M.D. of Bonnyville Top 10 Industry Sectors Based on Size and LQ

Percentage of Total Businesses (%)

60%

50% Agriculture, forestry, fishing and hunting, 401 40%

30% Construction, 115

Real estate and rental and leasing, 66

20%

Professional, scientific and technical services, 47

10%

Other services (except public administration), 73 Mining and oil and gas extraction, 47 Transportation and warehousing, 57

Retail trade, 35 0% -1.00 0.00 Administrative and support, waste management and remediation services, 21

1.00

2.00

3.00

4.00

Accommodation and food services, 18

5.00

6.00

LQ as a factor of the Province

Source: Canadian Business Counts, June 2020

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Baseline Economic Analysis Key Highlights A statistical review and environmental scan of the region’s relevant socio-economic indicators – demographics, income, workforce, and business climate – was conducted to determine relevant trends/projections.

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Investment Readiness Analysis Bonnyville’s relatively new efforts to embark on regional economic development service delivery are eager, enthusiastic, and hopeful. To build upon this spirit, MDB Insight analyzed the region’s investment readiness from organizational and infrastructure points of view. The current regional economic development effort was scored using 65 criteria in seven operational areas.

Figure 6: Investment Readiness Operational Areas

The following are the top priorities for improving the region’s investment readiness.

Build rapport and collaboration – Economic Development staff must continue their outreach to colleagues in other departments. Communication with regional, provincial, and federal government agencies and professional associations is also needed to stay informed about new policies, programs, and issues/trends. There should also be an ongoing dialogue with the leadership of local First Nation and Métis communities to explore the potential for collaborative opportunities.

Through regional organizations such as Alberta HUB, economic development staff can also influence and join activities that are pursued collectively with neighbours.

Establish welcoming policy regimen – To help with this priority, Councils of the Town and M.D. can ensure that references to economic development underscores planning policies or is added to documents that currently fail to mention this important part of municipal business. In cooperation with Planning staff, municipal contacts who come in contact with local business owners and potential investors should be trained on topics related to municipal development plans, area structure plans and other policies and procedures that affect proposed development. Regular meetings with Planning staff will ensure Economic Development staff are aware of the status of

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development applications and have an opportunity to provide comment and, if beneficial, support communication with the applicant. These types of interactions can also be an opportunity to discuss ways of reducing red tape. In November 2020, the Province of Alberta released requirements for municipalities to report, by February 2021 and February 2022 how they have eased the development process. Not doing so will risk the municipalities’ ability to secure Municipal Stimulus Program funding.

Create inventory of available industrial and commercial properties – In some cases, municipal councils establish municipally-owned industrial parks. This is not the case in Bonnyville. In their absence, private parcels need to be promoted. Economic development staff can work with local property owners and their representatives to post available land and building information on a website.

Respond to inquiries same-day with relevant data – Incoming investors expect immediate attention.

Economic Development staff should be prepared to answer questions posed in a development inquiry within the same day. Having up-to-date statistics is part of this, but so is having responsive contacts who can provide answers to planning, land development, mapping, incentives, utilities, and workforce questions.

Gather intelligence on the existing business community – Taking advantage of opportunities means firstly having reliable information on hand. To that end, it is crucial that Economic Development staff coordinate an active Business Retention and Expansion (BR+E) Program, including regular business visits and tracked progress on issues raised by local employers.

Provide support with marketing and communications – Given the importance that investors place on websites to discover a new community, Bonnyville’s online presence needs to be optimized. This includes giving a strong presentation of what industries Bonnyville is interested in attracting, describing the steps the community takes to support existing businesses, the competitive strengths of the location, a searchable property inventory and mapping, etc.

The detailed evaluation of Bonnyville’s investment readiness can be found in the supplementary technical report. It clearly explains the next steps for service-delivery readiness. Professional associations, neighbouring municipalities, and offices at senior levels of government can also assist with preparing the Bonnyville region to respond to opportunity.

Priority initiatives have been incorporated into the Strategic Objectives and Action Plan.

Quick wins on investment readiness increase overall economic resilience

“The Town and M.D. of Bonnyville have a solid business base with economic potential to build on.

By focusing on ‘quick wins’ that will improve the investment readiness of the region, both the Town and M.D. can quickly increase overall economic resilience.”

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Where Do We Want to Go?

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Summary of Consultation Findings Business Survey Results As part of the Bonnyville Regional Economic Development Strategy, a Business Satisfaction Triage BR+E Survey was undertaken to understand local business health. Business retention and expansion (BR+E) activities are essential to ensuring business needs are monitored and addressed; however, engagement can be time-consuming and complex.

A Triage BR+E Survey was commissioned to engage the broader business community while also allowing for the identification of potential expansion or retention opportunities for follow-up on a business-bybusiness basis. A random telephone survey was conducted with 83 businesses out of an initial sample of 889 businesses.

This scientific approach ensures that the results have a high level of accuracy and statistically represents the business community in Bonnyville.

Insights ▪ ▪ ▪ ▪

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▪

Overall business satisfaction in the region is healthy at 89%, with 37% very satisfied and 52% somewhat satisfied.

13% indicate their level of satisfaction is more favourable than 12 months ago, compared to 40% indicating more negative; representing a net decrease of 27%.

Businesses were asked to rate their satisfaction on 14 different factors affecting their business performance. Only 2 of these factors had a satisfaction level of less than 60%.

The factors with the lowest levels of satisfaction were: availability of funding programs for business and property improvement, municipal property taxes, availability of unskilled labour, and development charges/off-site levies.

When considering which factors were statistically most likely to lead to improved business satisfaction, the top priorities were: municipal property taxes, internet service, availability of funding programs for business and property improvement, and cellular phone service.

Addressing these top-priority business factors through review, adaptation, or sustained attention is most likely to lead to higher business satisfaction.

Figure 7: Overall, how satisfied are you with M.D. / Town of Bonnyville as a place to own / operate a business?

52%

37%

As part of the survey, business owners were asked about their future expansion plans. Out of the 83 surveyed, 34 presented an opportunity for intervention – 12 businesses were considering expanding and 22 were considering relocating, downsizing, selling, closing, or had a lease expiring soon (Table 1). This

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information has been shared with Bonnyville staff and, in all cases, the follow-up has been made to understand the opportunities and challenges in more detail. Ongoing business retention and expansion surveys (yearly or bi-yearly) is also an effective way to monitor local business performance.

Table 1: Business Triage Results

Future Plans

# of businesses

Expansion

12

Downsize

7

Relocate

4

Sell

5

Close

4

Follow up Questions 3 within the next 6 months 9 business in more than 6 months from now 3 within the next 6 months 4 businesses in more than 6 months from now All in more than 6 months from now 1 within the next 6 months 4 business in more than 6 months from now 2 within the next 6 months 2 business in more than 6 months from now

Survey respondents saw the highest potential in the agricultural sector (e.g. farm-to-table, agri-food processing, greenhouse, vertical farming). As Figure 8 also shows, oil and gas extraction was still seen as being critical for the local economy as was an emphasis on manufacturing in that sector. The findings also show strong interest in continued tourism development with activities such as tournaments and spectator events and farm-to-table initiatives being important.

The findings also indicate that businesses see renewables, transportation and forestry as having less potential within the region. While those on the lower end of the scale should not be discounted for their potential, the rating does indicate a potential for community resistance to certain initiatives. Should those be pursued, implementation of a communication plan that outlines the rationale as to why certain sectors have been chosen is critical.

Bonnyville scored strong but slightly below the ongoing Provincial average for communities on the Community Business Health Index. It outperformed the provincial average on businesses’ ratings of local infrastructure and scored like the rest of the province on local business supports and workforce development. The Net Promoter Score is a representation of the level of positive word-of-mouth promotion of the community. Bonnyville’s Net Promoter Score was +3.6% indicating more positive proponents of the community than negative.

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Figure 8: Potential Industry Sectors

10 – Extremely Interested

1 – Not Interested Resident Survey Results As part of the consultation process, the local economic development officer also conducted a resident survey. This survey yielded 126 responses.

Insights ▪ ▪

▪ ▪

▪

Strengths – The top strengths within the region included lakes (37% of respondents), natural assets and parks (22%) and other outdoor recreation activities (15%).

Opportunities – Tourism was the number one identified opportunity (32% of respondents) followed by oil and gas extraction (22%) and encouraging new business development / a balanced economy (10%).

Desired future state – Residents were clear that they want a more diversified economy (23% of respondents) that is ‘thriving, growing and prosperous’ (22%).

Barriers to business development – When asked what factors were holding residents back from starting their own business, the number one response was ‘not enough start-up capital’ (23% of respondents) followed by the ‘small market/audience in the area’ (18%).

Desired actions – Residents were clear they want more actions related to tourism (14 responses) and more outdoor activities, entertainment, and events (5 responses).

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Themes from Stakeholder Consultations Beyond the surveys described above, extensive consultations involved stakeholders in the region, including three community/industry workshops, six advanced reconnaissance interviews, and an initial workshop with the Regional Economic Development Committee.

Insights ▪

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Need for economic diversification: As already highlighted, economic diversification is a core priority of this Plan and was echoed in stakeholder feedback. Participants stated they were getting tired of the cyclical ebb and flow of the oil and gas sector and were highly concerned over the industry’s long-term future. More diversification into sectors such as agriculture, tourism and renewables should have started several years ago, and need to be immediately addressed within this strategy.

Leveraging natural assets is vital for economic success: A clear theme that emerged was the need for the Town and M.D. of Bonnyville to collaborate better to leverage and promote the numerous natural features within the region. Assets such as the 80+ lakes, the Iron Horse Trail, and municipally owned campgrounds were seen as being critical.

Activities such as hunting and fishing were identified as having potential for expansion.

Building a thriving and robust tourism sector – Stakeholders highlighted the bold steps the M.D. has already taken in developing this industry with the Kinosoo Ridge Master Plan. Additional opportunities were identified, such as growing sports tourism, supporting cottage development, and working with indigenous partners to build cultural tourism activities. There was broad consensus that collaboration, both on product development and marketing, is critical to stimulating further growth in this sector.

Excellent opportunity to expand the agriculture sector – As one of the largest rural municipalities in Alberta, stakeholders saw potential in growing and diversifying the agricultural sector into areas such as hemp, food and beverage processing, slaughterhouse facilities and experimenting with other crop rotations. COVID-19 has highlighted a shift in consumer preferences towards a more locally sourced and ethical food supply chain. Activities to boost value-added production were seen in a favourable light. Additionally, linking the agriculture sector with farm-to-table initiatives within the tourism sector was identified as another viable step forward. Partnership with organizations such as Community Futures is vital in advancing these opportunities.

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▪

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Mobilizing the workforce – Improving job opportunities within the region was another opportunity that was raised by stakeholders. With a sharp decline in the oil and gas sector’s economic performance, the M.D. and Town need to devise a way to help the recently unemployed upskill and reskill to keep talent locally. There is potential to engage with local education institutions to establish training programs that are tailored to local needs and work with regional bodies such as Community Futures to increase the awareness of business skill training workshops. Mobilizing the workforce does not only mean keeping or transitioning talent locally but also refers to talent attraction activities. Feedback from a stakeholder interview with the operator of a major local oil and gas firm revealed the current challenges in attracting new talent to the Bonnyville and Cold Lake area. Geographic remoteness, poor physical infrastructure and a perception of limited recreational activities were among some reasons identified preventing talent from relocating locally. However, as COVID-19 increases the attractiveness and ease of remote learning and work placements, the Town and M.D. of Bonnyville could explore ways to improve its overall attractiveness to this new market segment.

Capitalizing on the proximity of CFB Cold Lake – Bonnyville’s proximity to CFB Cold Lake and National Defence Canada’s implementation of the Future Fighter program was identified by stakeholders as a huge opportunity not being fully realized. Local businesses require more support to bid on and win the smaller procurement contracts that are being released from the base.

Community Futures highlighted work underway and the potential for the M.D. and Town to assist in promoting some of these resources.

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SOARR Assessment A SOARR Assessment is a model for reflecting on strategic planning by studying identified Strengths, Opportunities, Aspirations, Risks, and Results (SOARR). It is a forward-looking model, taking elements of what would traditionally be affiliated with a Strengths Weaknesses, Opportunities and Threats (SWOT) analysis. It then uses insights gained through stakeholder consultations to inform what is desired for the future and how to know when our aspirations have been met (see Figure 9).

Figure 9: Data Points that Influence SOARR Assessment

Figure 10: Key Considerations for a SOARR Analysis

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Strengths Land Prices

Oil and Gas The oil and gas sector is the most important economic driver for the region. With over 11,000 active oil/gas wells and 184 businesses supporting the industry, the community’s economic well-being relies on the cyclical highs and lows of this sector. While still an incredible strength, the sector has substantially declined in recent years due to a drop in global oil prices and various economic shocks.

Multinational firms like Esso have a long-established history and relationship within the community, operating for 40+ years.

Affluent Community When compared to the province, the M.D. recorded median average household income of $171,014, above that of Alberta at $145,808. The Town is slightly below at $134,379. Furthermore, both the M.D. and Town are home to several wealthy businesspeople and investors who could help promote economic development activities.

Indigenous Communities Cold Lake First Nations, Kehewin Cree Nation, and two Métis Settlements (Elizabeth and Fishing Lake) generate significant economic activity in the region. There are excellent business development opportunities (e.g. unmanned systems training and cultural tourism) if partnership is better developed.

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The M.D. and Town have less expensive land prices compared to other areas, with a slight fall in prices recorded. Overall, this supports business and resident attraction initiatives.

Agriculture With over 706,085 acres of total farm area and gross farm receipts topping $102.4 million in 2016, up 48% from 2011, agriculture forms a key part of the regional economy. Notable crops include alfalfa, canola, barley, wheat and hay and is host to many livestock and poultry farms.

Agriculture diversity … more diverse here as anywhere in Alberta … bison, vegetable, etc. … kind of hidden and hard to find … for the newbies it’s difficult to find what is needed

Tourism

Al’s Carrots Bonnyville is a destination those to enjoy Hamels – meat cutting (alsoforwant to who take want over the small the natural environment.

For example, bird watching Abbatoir, if they are willing to sell). enthusiasts flock to Jessie Lake every Spring to spot the Vet – new nearly 200 construction bird species that use the lake as a stopping ground on their migration route. There are also 81 named lakes providing year-round recreational activities and seasonal accommodation.

The proposed Kinosoo Ridge Master Plan envisions the M.D. and Town as a four-season tourism destination, that includes further trail development, accommodations, and a number of adventure-based activities.

Increases in sports tourism, leveraging regional recreational assets, and growth in micro-breweries and other agri-tourism attractions are also promising within the area.

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Opportunities Note: A more detailed breakdown of opportunities is discussed in section 6 below.

Oil and Gas Although on a short and potentially long-term decline, the oil and gas sector still presents numerous opportunities for economic development. Areas such as levering oil and gas deposits, upskilling workforce and increasing focus on technology integration (e.g. use of drones) possess potential. The Orphan Well Fund also provides opportunities for local entrepreneurs and landowners.

Proteins & Ag Tech The M.D. of Bonnyville is a strong agricultural player within the region, with over 706,085 acres of total farm area. There may be value-added opportunities for alfalfa and strengthening the food processing side of operations.

Tourism & Quality of Place Retail and Services The Town of Bonnyville’s downtown acts as an important regional hub for businesses and services.

Historically, the downtown area has been largely reliant on the oil and gas sector to fuel business growth and sustain the economy. The recent economic downturn has left the area in need of revitalization. In 2009, the Town developed a Downtown Area Redevelopment Plan and opportunities exist today to focus on updating and implementing this plan.

Workforce Development Similar to the retail and services sector, workforce development is not a core economic driver but rather a supporting activity that is important for the whole economy. There are substantial opportunities for the Town and M.D. to collaborate on skills and training initiatives to help transition workers into emerging sectors (e.g. renewable energy). Partnerships with local education bodies and government agencies (e.g.

Community Futures) are essential in building workforce opportunities.

MDB Insight – Bonnyville Regional Economic Development Plan

With numerous lakes and campsites, the Town and M.D. of Bonnyville are well-positioned to build the tourism economy. Developments such as Kinosoo Ridge highlight the region’s commitment to strengthening this sector.

Tourism opportunities would increase further if environmental concerns over the quality of lakes are addressed.

Tourism

Renewable Energy Alberta has seen significant investments in solar, wind and geothermal power over the past several years.

Locally, there are opportunities for the M.D. and Town to capitalize on these investments and increase the size of the local sector.

Military Procurement The proximity to CFB Cold Lake (4 Wing) and nearby CFB Edmonton and Wainwright represent a variety of opportunities that could be further defined.

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Aspirations

▪ ▪ ▪ ▪

Population Growth – More people to keep jobs, workers, and families within the region and to attract more outside investment.

Entrepreneur Development – More support services to help businesses transition to other sectors and to encourage business start-ups.

Place-Building – Enhance amenities across the region to attract residents and businesses.

Collaboration – Improve relationships between partners, especially neighbouring municipalities, and local indigenous groups, to ensure joint progress on mutual interests.

▪

Lake Rehabilitation – More resources are needed to preserve and enhance these critical natural assets, which are essential to tourism development and quality of place.

▪

Marketing – Improve joint marketing efforts to brand the region as a preferred destination for visitors, new residents, and businesses.

▪

Tourism Development – A region where there are excellent natural tourism assets being used for four-season tourism activities (camping, hiking, four-wheeling, boating, skiing, snowmobiling, etc.). The Kinosoo Ridge Master Plan has been implemented and there is a small but thriving tourism sector locally.

▪

Become a destination – Leverage the ‘staycation’ mentality that has occurred during COVID-19. Using natural assets as a hub of visitor activity.

▪

Growth in cultural and agri-tourism activities.

▪

Diversification away from the oil and gas sectors – Although critical for the economy, residents want a more resilient economy with economic development activities not solely reliant on the booms and busts of the oil and gas sector.

▪

Develop retail – Stakeholders expressed desire for a broader array of retails options (e.g. box stores) to help create a thriving and bustling business and residential community.

▪

Revitalization of Business Neighbourhoods – Survey participants were clear they want to redesign some industrial and commercial parks and make the downtown more inviting for visitors and residents.

MDB Insight – Bonnyville Regional Economic Development Plan

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Risks External Internal ▪ ▪ ▪

▪

Ageing Infrastructure.

Poor attitude towards change. Too comfortable.

Unwillingness to compromise or seek mutually beneficial partnerships.

▪ ▪ ▪

Reliance on the oil and gas sector (e.g. royalties, number of businesses, national/global policy changes).

Environmental (e.g. health of lakes).

Availability of workforce.

Perception of geographic isolation.

Social / Community ▪ ▪ ▪

Ability to attract and retain health care practitioners.

Failure to consider existing built and cultural heritage in planning decisions.

Establishing a sense of community identity and future vision that is supported by all.

Results Collaboration ▪ ▪ ▪ ▪

Have clear mutually-aligned interests with businesses.

Town and M.D. consistently work together towards vision.

Engaged local indigenous groups and municipalities.

More consistent engagement with residents and business community to understand needs and vision.

Environmental Recovery and Tourism Development ▪ ▪ ▪

Business and workforce development; economic diversification ▪ ▪ ▪ ▪

Have established support networks for existing business community.

Availability of entrepreneurship resources.

Talent attraction and retention polices in place.

Achieved economic diversification by investing in other sectors.

Town and M.D. have a clear tourism plan and have a critical mass of product, infrastructure and events.

Revitalization of downtown and fostered pride of place.

Clear plan to restore health of lakes through collaboration with provincial and regional partners.

MDB Insight – Bonnyville Regional Economic Development Plan

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Articulating the Region’s Value Proposition While developing the strategy, potential economic development opportunities were identified and thoroughly researched and discussed. The following pages summarize preliminary findings from the background review, stakeholder interviews, independent research and SOARR analysis. These opportunities served as the basis for discussion during the future objectives workshop with the Regional Economic Development Committee. A list of criteria used to assess these assets has also been provided.

Criteria Used to Assess the Opportunities Economic Impact: Through a big-picture lens, this criterion indicates the scale at which the given opportunity would create jobs and investment in the region.

Ability to Influence: This criterion assesses whether the opportunity would be easy or difficult to influence by the municipalities.

Potential for Diversification: For the foreseeable future, oil and gas will be important to Bonnyville’s economy, but this criterion reflects feedback that the region’s economy needs diversification.

Scores should be interpreted as follows:

Figure 11: Criteria Assessment Legend

Score

Legend

Opportunity is weak when considered by this criterion

Opportunity meets this criterion to a degree, with some considerations and drawbacks

Opportunity is strongly aligned with this criterion

MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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MDB Insight – Bonnyville Regional Economic Development Plan

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Prioritizing Objectives A core objective of this project is to have a plan that is easily implementable while keeping in mind limits on capital, staffing resources and timing requirements. The figure below presents each of the economic drivers identified on the preceding pages and indicates their relative future economic impact and the M.D. and Town’s ability to influence them. The oil and gas and military sectors were identified as having continued economic importance in the region but are relatively difficult to influence locally. Conversely, the tourism and retail sectors were identified as being easier to influence but will have a relatively lower future economic impact. Sectors such as the proteins and ag tech and renewable energy were found to fit somewhere in the middle, having both important future economic impact yet allowing for more significant influence from the Town and M.D. of Bonnyville’s perspective.

Figure 12: Comparison of Economic Drivers and Supporting Sectors

In prioritizing actions for the final strategy, each of the three criteria (Economic Impact, Ability to Influence, and Potential for Diversification) were considered. As can be seen in Figure 13, only the most critical actions from each economic driver and supporting sector were chosen to be included in the final strategy.

Important takeaways from this analysis include the importance for the M.D. and Town to continue to prioritize the outdoors, improving municipally-owned campgrounds, and leveraging the abundance of outdoor natural assets (Moose Lake, Jessie Lake, and others) and the strong community support for agritourism and farm-to-table initiatives. On the oil and gas front, ongoing monitoring is needed, as it will continue to drive significant economic growth for the foreseeable future. However, limited actions have been provided at expanding oil and gas due to municipalities’ ability to influence. In agriculture, building

MDB Insight – Bonnyville Regional Economic Development Plan

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the capacity for value-add alfalfa processing, expanding technology use in farming, and accessing grocery stores in other buyers in urban markets were key actions. Similarly, a renewed focus on increasing renewable energy efforts, where a business case can be supported, to reduce the region’s carbon footprint was identified as essential to help local businesses reduce future expenses. Finally, increasing support to educate local businesses on the military procurement opportunities available, with critical training on how to ensure they are appropriately registered and meet all relevant requirements.

Supporting areas of the economy, such as retail and services, was deemed to benefit from broader diversification efforts. Relevant actions are focused on implementing the Town’s Downtown Revitalization Plan and concentrating on business retention and expansion activities. Finally, understanding the need to attract and retain local talent is crucial for the economic success of all sectors. This is achieved by working with secondary and post-secondary education institutions, along with broader workforce partners.

Figure 13: Strategy Implications of Key Economic Drivers

Economic Drivers

Economic Impact

Ability to Influence

Potential for Diversification

Strategy Implication

Tourism & Quality of Place

Medium

High

High

Prioritize outdoors, campgrounds

Oil and Gas

High

Low

Medium

Continue to support

Proteins & Ag Tech

Medium

Medium

High

Prioritize farm-to-table and alfalfa value-adds

Renewable Energy

Medium

Medium

Medium

Prioritize carbon footprint

Military Procurement

High

Low

Medium

Raise awareness, build capacity

Supporting Sectors Retail and Services

Low

Medium

Medium

Continue downtown revitalization, gap analysis

Workforce Development

High

Low

Medium

Prioritize workforce skill transfer

MDB Insight – Bonnyville Regional Economic Development Plan

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How do we get there?

MDB Insight – Bonnyville Regional Economic Development Plan

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How do we get there?

An Action and Implementation Plan addresses the challenge of “How Do We Get There?” Based on the background document review, economic analysis, investment readiness assessment, and consultations, three strategic objectives were developed, each with specific action themes (Figure 14):

❶

❷

❸

Secure capacity for investment readiness

Focus on economic diversification

Build a brand that excites, attracts, and delivers

Specific tools and protocols are required to operate economic development services effectively.

A diversified economy smooths out the highs and lows of economic turbulence.

Positive attitudes and forwardthinking perceptions are key to attracting investment.

Employment and business start-ups increase when there is a more diversified economy.

Strategies built on strong service delivery have higher potential to realize outcomes, impress the community, and build momentum.

Elements of hard infrastructure must be in place to attract and/or expand business investment.

MDB Insight – Bonnyville Regional Economic Development Plan

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Figure 14: Strategic Directions and Actions for Bonnyville Region Economic Development

Action Plan 1. Amplify commitment to delivering economic development services 2. Build confidence among businesses and partners 3. Develop infrastructure for shovel-ready investment 4. Diversify existing industry sectors 5. Support emerging industries 6. Celebrate the region’s advantages, innovations, and points of pride 7. Inspire businesses, community leaders and citizens to act as investment ambassadors

MDB Insight – Bonnyville Regional Economic Development Plan

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Action 1: Amplify commitment to delivering economic development services Step 1a: Ensure fundamental policies and tools are in place to activate economic development services ▪ Approve the Bonnyville Economic Development Strategy and monitor results annually ▪ Clarify authority, roles, and responsibilities of Economic Development Advisory Board members, management, and staff ▪ Address economic development in municipal development plans and other policies

Step 1b: Establish protocols for responding to investment inquiries ▪ ▪ ▪ ▪

Maintain datasets of reliable community statistics tailored to investor inquiries Update database of available industrial and commercial buildings, properties, and vacant lands Maintain a confidential tracking system for investor inquiries and follow-up Educate stakeholders about confidentiality expectations

Step 1c: Launch economic development marketing aimed at potential investors and local businesses ▪ Maintain an economic development website with detailed available land inventory, strategic advantages to investing in the region, descriptions of development processes and contacts, and other necessary information ▪ Ensure all marketing materials and website answer pertinent questions that would drive investment by your region’s ideal developer ▪ Activate public relations, advertising, and social media promotional tactics Rationale: Bonnyville’s relatively new efforts to embark on regional economic development service delivery are well-intentioned and hopeful. A regional advisory committee is in place, and staff have been hired and has proactively introduced himself to the community. A strategic plan is in development. Several foundational elements must be in place to amplify the area’s commitment to sustaining an economic development program. These basic building blocks ensure staff have the tools to respond quickly and accurately to investors who have high expectations for timely service.

Strategic Objective: Secure capacity for investment readiness Ability to Influence: High Economic Impact: High Diversification Potential: High Focus: Organizational Potential Partners: M.D., Town

MDB Insight – Bonnyville Regional Economic Development Plan

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Action 2: Build confidence among businesses and partners Step 2a: Continue to develop communication and rapport with all municipal departments ▪ ▪ ▪ ▪

Map out gatekeepers of information, resources and approval with the Town and the M.D. Schedule frequent formal and informal conversations with appropriate municipal staff Build rapport and trust among peers by offering help, support, and information Encourage a team approach to review new development opportunities and challenges

Step 2b: Strengthen relationships with gatekeepers of funding and policy change ▪ Communicate regularly with senior government agencies and professional associations to learn about new policies, programs, information, funding, issues/trends ▪ Leverage funding programs to support pilot projects (e.g., tourism development, agricultural diversification, downtown revitalization, oil and gas transition, investment attraction) ▪ Establish a political advocacy team in cooperation with like-minded municipalities to generate policy change and new sources of funding from senior levels of government

Step 2c: Implement a Business Retention & Expansion program involving outreach, business visits and follow-up ▪ Arrange visits with major employers and high-growth businesses at an average rate of 6-8 per month to understand their opportunities, development plans, and challenges ▪ Follow up with businesses to provide value, information on funding programs, or other resources ▪ Anticipate the needs of expanding businesses and encourage dialogue with any regulatory process ▪ Populate a confidential database with companies’ contact information, key principals, number of employees, corporate ownership and other critical information ▪ Act as a facilitator to direct challenged businesses to the appropriate potential source of a solution ▪ Fix bottlenecks and pinch points to improve customer service excellence

Step 2d: Align intentions and resources with others to achieve results of mutual benefit ▪ Cooperate with the City of Cold Lake to develop a better understanding of joint opportunities ▪ Strengthen dialogue with First Nation and Métis leadership ▪ Consider cooperative initiatives with local business associations and community groups, other neighbouring communities, regional alliances, and provincial associations Rationale: Effective economic development initiatives build upon the assets and strengths of the community and high levels of rapport among influencers and decision-makers. With the confidence of local businesses and other collaborative partners, it is less complicated to initiate growth-based programs and attract investment.

Strategic Objective: Secure capacity for investment readiness Economic Impact: High Potential Partners: Province of Alberta, Alberta HUB, M.D., Town, City of Cold Lake, First Nation and Métis communities, Chamber of Commerce, Community Futures, MLAs, MPs, major employers

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: High Diversification Potential: High Focus: Organizational

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Action 3: Develop infrastructure for shovel-ready investment Step 3a: Assess capacity of utilities to meet long-term development needs ▪ Identify the top five most marketable industrial/commercial properties in the region and quantify their water and sewer capacities, power sources and load capacities, natural gas links, road conditions and loads, and internet connectivity.

▪ Research potential development opportunities for the top five properties and quantify servicing gaps (e.g., single-phase power when three-phase is required, water needs for food processing vs water flows, etc.)

▪ Review asset management plans and work with utilities to address gaps in infrastructure needs

Step 3b: Ensure land use plans are flexible, allowing development to proceed with minimal approvals ▪ Review municipal development plans, area structure plans, and other policies, and add additional adaptability of uses and room for expanded interpretations to increase development opportunities ▪ Run test cases through the municipalities’ development procedures to document pinch points that may be eliminated with changes to administrative policies ▪ Compare approval times with other municipalities, and review satisfaction rates gleaned from developers and builders

Step 3c: Provide tools for Building, Planning, and Economic Development staff to expedite consultations ▪ Establish GIS mapping tools ▪ Provide contactless application processes and technology for intake and inspections ▪ Encourage new ideas that expedite development approval processes Rationale: A municipality’s complex infrastructure networks of roads, water pipes, sewer mains, power cables, gas lines and high-speed fibre all deteriorate due to age, changes in use, climate conditions, and other factors. Maintaining existing assets is a challenge, let alone installing new services. However, every day, site selectors consider a community, only to discover that the infrastructure is not available on the land that interests the developers. So, they turn away from that community and look elsewhere. Bonnyville’s economy will only expand if municipalities invest strategically in their assets to ensure a property is shovel-ready when companies come knocking.

Strategic Objective: Secure capacity for investment readiness Economic Impact: High Potential Partners: Province of Alberta, M.D., Town.

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: High Diversification Potential: High Focus: Organizational

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Action 4: Diversify existing industry sectors Proteins and Agriculture Technology Step 4a: Engage farmers, agri-businesses, greenhouse operators, and food processors ▪ Identify enthusiastic business owners willing to explore protein development, agriculture technology, and/or food production and distribution ▪ Coordinate ongoing Business Retention & Expansion initiatives with those businesses who demonstrate the capacity to grow

Step 4b: Connect entrepreneurs interested in protein development to programs and specialist agencies ▪ Explore diversification funding opportunities to pilot value-added processing of alfalfa and other products, such as curing, dehydration, pelletizing, packaging, and logistics.

▪ Look for valued-added opportunities in support sectors and by-products, such as pollination services and honey production ▪ Capitalize on Protein Industries Canada’s initiative to attract processing facilities for domestic and export buyers.

▪ Work with industry experts, researchers, and export agencies to define national, continental, and overseas markets.

▪ Leverage educational institutions and local businesses to establish a public-private greenhouse or vertical farm development, utilizing agricultural technologies.

Step 4c: Connect farmers, greenhouse operators, and food processors to buyers and promoters of local food in Alberta’s urban markets ▪ ▪ ▪ ▪ ▪

Investigate providing supports for small start-ups to retrofit buildings for vertical farming.

Support efforts to increase procurement of local foods (e.g., Alberta Food Marketplace).

Support local farmers to sell their products into the Edmonton market and beyond.

Explore agricultural technology applications to leverage existing greenhouse infrastructure Align with geothermal power supply recommendations to reduce electricity costs.

Rationale: Agriculture is fundamental to the rural lifestyle in the M.D. and Town of Bonnyville with 706,085 acres of total farm area. Farmers in the region produce crops such as alfalfa, canola, barley, wheat and hay and is host to multiple livestock and poultry farms. Gross farm receipts topped $102.4 million in 2016, up 48% from 2011. This figure represents 26% of Division No. 12's total gross farm receipts for 2016. Protein Industries Canada is working to double Canada's global market share in agri-food products by 2027. The plant-based protein market is estimated at $8B US and is expected to reach $14.8B US by 2023 (compound annual growth of 5.9%).

Strategic Objective: Focus on economic diversification Economic Impact: Medium Potential Partners: Province of Alberta, Alberta HUB, Alfalfa Seed Commission, Lakeland Agricultural Research Association, Community Futures, M.D., Town, Bonnyville Agricultural Society, First Nations and Métis communities

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Medium Diversification Potential: High Focus: Investment Attraction

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Action 4: Diversify existing industry sectors Retail and Services Step 4d: Implement the Downtown Area Redevelopment Plan ▪ Investigate allocating more financial resources and staff time to implement the existing plan ▪ Empower business owners and citizens to propose new ideas for downtown Bonnyville

Step 4e: Understand investment targets with a formal commercial trade market evaluation and commercial gap analysis ▪ Draft the scope of work and identify the retail project as a priority when drafting the new budget ▪ Promote the findings and align existing assets in the downtown to proposed new businesses ▪ Explore incentives and tactics to attract the type of retail and services that are needed in the Town

Step 4f: Inspire businesses to reimagine their stores, products, and services for the tourism market ▪ See “Tourism & Quality of Place” under Emerging Industries Rationale: The Town of Bonnyville’s downtown acts as an important regional hub for businesses and services. Historically, the downtown area has been largely reliant on the oil and gas sector to fuel business growth and sustain the economy. During the economic downturn it has been a challenge to keep the area vibrant. COVID-19 brought its own set of challenges, with lockdowns and online shopping severely affecting small business owners. Investment in downtown infrastructure is important to keep spending within the local community. The Town’s 2009 Downtown Area Redevelopment Plan is solid, requiring only slight updates and implementation. Marketing and promotion efforts are also important to ensure investors and business operators are aware that the downtown and other commercial areas in the town can be successful locations.

Strategic Objective: Focus on economic diversification Economic Impact: Low Potential Partners: M.D., Town, Chamber of Commerce

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Medium Diversification Potential: Medium Focus: Retention and Attraction

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Action 4: Diversify existing industry sectors Oil and Gas Step 4g: Leverage the talent and expertise of oil and gas workers and entrepreneurs to supply a workforce for a diversifying industry ▪ Prepare a framework of cross-industry collaboration where skills and assets may be transitioned to other sectors.

Step 4h: Capitalize upon investments outlined in the Province’s Natural Gas Vision and Strategy ▪ Encourage businesses to prepare for the future by reducing their carbon footprint and decreasing their operating costs.

▪ Investigate financial incentive schemes to reduce carbon footprint.

Rationale: Oil and gas extraction activities are vital to the economic success of the Town and M.D. due to its location on the Cold Lake Oil Sands Area, the second largest in Alberta. The M.D. and Town have 184 businesses and over 11,600 oil/gas wells driving economic activity in the sector. Alberta’s Natural Gas Vision and Strategy envisions Alberta as a global supplier of clean, responsibly sourced natural gas and related products (hydrogen, petrochemicals, and recycled plastics.) However, Bonnyville is not well positioned to capitalize on investments in hydrogen or petrochemicals at this stage due to its remote location and limited rural demand. Meanwhile, it is important the Bonnyville region is proactive in reducing the overall carbon footprint to minimize the compounding cost implications the price on carbon will have on local businesses.

Strategic Objective: Focus on economic diversification Economic Impact: High

Ability to Influence: Low Diversification Potential: Medium Potential Partners: Province of Alberta, Businesses, Chamber Focus: Retention of Commerce, M.D., Town

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Action 4: Diversify existing industry sectors Workforce Development Step 4i: Collaborate on workforce development ▪ Advocate regional workforce partners to build foundational elements for workforce development.

▪ Encourage the implementation of a workforce job seeker and employer survey to understand a current picture of skill and employment gaps in the Bonnyville region.

▪ Encourage workforce agencies to develop mobile, ‘pop up’ training workshops, and community facilities, blending online and in-person learning and align with identified skill gaps.

▪ Explore internship experience days and business mentorship programs involving secondary school students and businesses.

Step 4j: Collaborate with Indigenous communities and other regional partners ▪ Increase discussions with regional partners (farmers, Community Futures) ▪ Explore workforce development to transition skilled trades to other industries ▪ Promote more tourism training opportunities (via Destination Alberta).

Rationale: The Bonnyville region has a proportionately high concentration of labour force than the Province of Alberta in oil and gas extraction, truck transportation, repair and maintenance, and heavy construction. Net employment growth between 2016 and 2018 was strongest within the oil and gas extraction sector. During consultations for this strategy, Bonnyville stakeholders expressed concern about a potential sharp decline in the oil and gas sector’s economic performance, and consistently raised the issue of improving job opportunities within the Bonnyville region. There is a desire within the community to help the recently unemployed to upskill and reskill to keep talent local. With the assistance of senior levels of government and workforce-related agencies, training schemes may be tailored to local needs, and awareness of business skill training workshops can be increased.

Geographic remoteness and perceptions of limited recreational activities were among the reasons preventing new talent from putting down roots in the area. However, the pandemic has led to an increased interest in remote learning and work placements.

Strategic Objective: Focus on economic diversification Economic Impact: High Potential Partners: Alberta Ministry of Advanced Education, Ministry of Jobs, Economy and Innovation, Ministry of Labour and Immigration, Ministry of Community and Social Services, Lakeland Employment Services, Alberta Supports Centre, Post-secondary educational institutions, local boards of education

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Low Diversification Potential: Medium Focus: Organizational

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Action 5: Support emerging industries Tourism and Quality of Place Step 5a: Develop publicly owned tourism assets ▪ Upgrade amenities and expand experiences at Municipal District campgrounds and Kinosoo Ridge ▪ Diversify overnight accommodation options at Municipal District campgrounds Examples: safari tent glamping, cabins, boatels, winter camping, etc.

▪ Explore year-round overnight tourist accommodation options at Kinosoo Ridge ▪ Identify other land assets in the M.D. and Town for tourism development and encourage developers to invest ▪ Collaborate with Cold Lake First Nation and other First Nation and Métis communities to build authentic indigenous tourism experiences.

Example: Métis Crossing experience near Smoky Lake.

Step 5b: Encourage small businesses to monetize experiences ▪ Encourage outfitters and tour guides to operate bookable experiences on Municipal Campgrounds, Kinosoo Ridge, and trails.

Examples: snowshoe and other gear rentals, guided fishing trips, team-building retreats, how to camp for newcomers, etc.

▪ Encourage farmers to monetize agricultural experiences for visitors.

Examples: farm stays, harvest dinners, farm volunteers ▪ Encourage farmers, hunters, chefs, restaurants and retailers to cooperate on local food initiatives Examples: indigenous wellness, farm-to-table dinners and tastings, culinary classes, food canning and preserving, wild game slaughtering, herb/mushroom foraging, local food and drink festivals ▪ Hire a summer student to assist the Economic Development Officer with supports to tourism businesses.

Examples: ensure local operators have an online presence, update information on Google, TripAdvisor, and other trip-planning platforms, build a collection of high-quality video and photo assets to be used for future promotions

Step 5c: Build word-of-mouth advertising for tourism experiences ▪ Focus on incentivizing ‘staycations’, promoting cottage development, and increasing visitor numbers to regional campgrounds ▪ Learn from other communities regarding cottage development (Buffalo Lake) ▪ Increase pride of place investments that strengthen the community ▪ Encourage businesses that bring traffic to downtown Bonnyville Rationale: The Town and M.D. are uniquely positioned to capitalize on a spike in rural tourism.

COVID-19 has accelerated a shift towards ‘staycations’ and increases in rural tourism experiences, such as camping and farm experiences. Interest in Indigenous cultures has also been growing for several years in the national and global tourism markets. These experiences leverage regional partnerships and Bonnyville’s environment, agriculture, and cultural assets. Current plans to strengthen natural tourism assets (campgrounds) and develop a 4-season tourism product via Kinosoo Ridge showcases the region’s desire to create a sustainable tourism industry. The region has several

MDB Insight – Bonnyville Regional Economic Development Plan

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Action 5: Support emerging industries emerging culinary assets that could be further promoted (e.g., Open Farm Day). Investments in local assets such as lake rehabilitation or improvements to the Iron Horse Trail will also improve resident satisfaction levels. Bonnyville M.D.’s 9 regional campsites have seen an 11% increase in revenue and 11% increase of total nights stayed over the past year, with average occupancy up 3%. By capitalizing on growth in domestic recreational travel and preferences for rural experiences, such as outdoor activities and camping, Bonnyville M.D.’s campgrounds will benefit.

Strategic Objective: Focus on economic diversification Economic Impact: Medium Potential Partners: M.D., Town, Tourism Operators, Chamber of Commerce, First Nation and Métis communities, Community Futures

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: High Diversification Potential: High Focus: Retention and Attraction

Be bold, Bonnyville.

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Action 5: Support emerging industries Military Procurement Step 5d: Help build capacity and awareness among businesses of military procurement opportunities ▪ Collaborate with CFB Cold Lake, Community Futures, the City of Cold Lake and other organizations to develop a plan to encourage businesses to pursue procurement contracts ▪ Establish a coordinated approach to increase hosting and promotion of and attendance at training sessions on ‘winning the contract’ ▪ Work with the Province of Alberta to explore issues related to water quality in local lakes

Step 5e: Leverage the region’s assets to explore opportunities in drone testing ▪ Explore opportunities with leading organizations in the development of uncrewed aerial vehicles (UAVs) and remotely piloted aircraft systems (RPAS) to consider Bonnyville as a location Rationale: Four military bases operate in Alberta (with Edmonton, Wainwright and Cold Lake nearby) and collectively generate over $10 million in local procurement contracts annually. The M.D. and Town of Bonnyville are uniquely positioned next to CFB Cold Lake (4-Wing), the largest and busiest military fighter jet base in Canada. The immediate future of this facility is very bright: new infrastructure here and in Bagotville, Quebec, will be home to the next generation “Future Fighter” aircraft, a project that could mean $61 billion in economic impact, according to Boeing, one of the project’s bidders. The value of the Cold Lake hangar contract alone is approximately $272 million for a 34,500 square metre facility in Cold Lake, which will include operational headquarters for the squadrons that will fly the jets, as well as state-of-the-art security, IT and maintenance and training facilities. Even without this major injection of investment, local businesses are already losing out on hundreds of thousands of dollars in small-scale procurement contracts due to security clearance issues, registration, or lack of awareness of opportunities. Local manufacturers, contractors and service providers should pursue military contracts for goods and services.

Strategic Objective: Focus on economic diversification Economic Impact: High Potential Partners: CFB Cold Lake, Defence Procurement Canada, Canadian Association of Defence and Security Industries, Community Futures, M.D., Town, City of Cold Lake, Chamber of Commerce

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Low Diversification Potential: Medium Focus: Retention

Be bold, Bonnyville.

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Action 5: Support emerging industries Renewable Energy Alternatives Step 5f: Keep current on renewable energy alternatives ▪ Explore petrochemical and energy-related innovations offering potential new revenue streams ▪ Investigate growing small-scale business clusters that will expand the petrochemical or hydrogen supply chain

Step 5g: Explore alternative energy solutions with solid business cases ▪ Encourage businesses to investigate geo-exchange technologies and other renewable energy alternatives ▪ Target small scale investments and leverage networks with senior levels of government ▪ Develop a waste-from-energy program that becomes a best practice for other municipalities Rationale: The Alberta Electric System Operator forecasts 19% of Alberta’s electricity will be sourced from renewables by 2030. Deregulation of the electricity market has resulted in 9,000 megawatts (MW) of new capacity since 1988, and there is currently 16,390 MW of installed generating capacity in Alberta. There are currently has 8 wind/solar projects under construction in Alberta with total costs at $934 million, generating 582 MW, and there are 18 proposed wind/solar projects with estimates totaling $3.4 billion, generating 2137 MW. Biomass energy capture has also gained popularity under the previous provincial Bioenergy Producer Program. Opportunities exist to capitalize on Emissions Reduction Alberta’s new $150 million Shovel-Ready Challenge. The M.D. and Town of Bonnyville have the potential to further expand into the renewable energy sector, particularly solar, geo-exchange, and bio-mass energy. Opportunities exist to leverage knowledge transfer between the oil and gas industry into renewables with assistance from post-secondary education providers. The M.D. has released a waste-to-energy feasibility study RFP to explore opportunities.

Strategic Objective: Focus on economic diversification Economic Impact: Medium Potential Partners: Province of Alberta, M.D., Town

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Medium Diversification Potential: Medium Focus: Retention

Be bold, Bonnyville.

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Action 6: Celebrate the region’s advantages, innovations and points of pride Step 6a: Improve joint marketing efforts to brand the region as a preferred destination for visitors, new residents, investment ▪ Implement “Buy Bonnyville” initiatives to increases sales of locally made products ▪ Share stories about the region’s innovators and their accomplishments ▪ Promote specific tourism experiences and investment opportunities

Step 6b: Measure the results of marketing activities ▪ Review marketing and promotional outcomes annually ▪ After three years of activity, prepare an investment attraction marketing plan as part of a strategic planning review, using best practices established by other comparable municipalities.

Rationale: The Bonnyville region is a unique, vibrant community with a prosperous future ahead.

Many of the advantages of living, working, playing, and investing in the M.D. and the Town are generated by a strong rural heritage and work ethic, innovative entrepreneurs, and a welcoming culture. Celebrating these advantages builds confidence and pride in the local economy, which requires supportive marketing and communications. From boring (for some) statistical datasets to fun (for some) social media campaigns, every communication and marketing tool plays a role in building on the story of the community. The more compelling and inclusive the story, the more that people identify with the community and want to belong. By working together to promote the area’s assets and strengths, local government, businesses, and citizens can drive their destiny.

Strategic Objective: Build a brand that excites, attracts, and delivers Economic Impact: High Potential Partners: Economic Development Committee, Community Futures, Chamber of Commerce, Town, M.D. Staff

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: Medium Diversification Potential: High Focus: Organizational

Be bold, Bonnyville.

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Action 7: Inspire businesses, community leaders and citizens to act as investment ambassadors Step 7a: Develop a team of business champions ▪ Identify potential champions from Business Retention & Expansion efforts ▪ Invite major employers, new enterprises, young entrepreneurs, newcomers, and business successions to spread positive messages about the region to their suppliers and clients

Step 7b: Harness local networks, creativity, and success ▪ Organize an annual local event for businesses to learn about the regional economy, to network with others, and to build partnerships and collaboration ▪ Utilize the event to celebrate achievements, reward successful businesses, and acknowledge community contributions to the economy ▪ Harness creativity within the community to prioritize new opportunities Rationale: A team of business champions, sourced from within the M.D. and the Town of Bonnyville, would help local businesses better understand how to maximize potential opportunities with government procurement and industry buyers. This effort requires more frequent interaction with and understanding of local manufacturers and processors. New enterprises led by young entrepreneurs, newcomers, or new owners of business successions bring new vitality to the region.

Strategic Objective: Build a brand that excites, attracts, and delivers Economic Impact: Medium Potential Partners: Economic Development Committee, Community Futures, Chamber of Commerce, Town, M.D. Staff

MDB Insight – Bonnyville Regional Economic Development Plan

Ability to Influence: High Diversification Potential: Medium Focus: Organizational

Be bold, Bonnyville.

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Performance Measurement Monitoring It is recommended that the Town and M.D. of Bonnyville monitor progress on the Regional Economic Development Plan annually, preferably in advance of the budget review process. A key element of monitoring progress on implementation is the identification of performance metrics that offer an evidence-based assessment of the outcomes and impact of the strategic actions. Performance metrics provide a consistent framework to evaluate the following: ▪

Did we achieve what we set out to do?

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Did our efforts have the desired impact?

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Are we closer to achieving our strategic goals because of these efforts?

MDB Insight – Bonnyville Regional Economic Development Plan

Be bold, Bonnyville.

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Performance Metrics Increased citizen demands for government accountability drive the use of performance measures in local government. Greater interest on the part of local legislators in performance-related information to assist in program evaluation and resource allocation decisions is aimed at making governments more oriented toward results.

Performance metrics allow for an evaluation of tactics and strategies that support efficient and effective planning and resource allocation. They are a diagnostic tool that focuses on energy, attention, and effort. They also help to support the Municipality’s commitment to accountability and transparency. Like any tool, the spectrum of sophistication is broad, for a variety of reasons.

It is recommended that the Town and M.D. carefully construct a performance measurement system that includes detailed and appropriate metrics for each of the Regional Economic Development Plan Objectives. This could be structured to utilize existing measures, and the creation of other metrics to effectively measure new initiatives.

A “report card” shared during the annual Plan Review would be the principle means of reporting back to Council and the community on the Regional Economic Development Plan performance measures. A system that feeds directly into the Departmental Business Plans is suggested, to ensure there is a consistent measurement between the day-to-day actions and tactics, and the strategic planning framework.

Basic Metrics A basic performance metric could be a statement grounded in an internal, informal assessment of a project’s progress. As part of the monitoring report, the outcome could be measured as a percentage of progress towards an action being completed.

▪

Example: Update of New Economic Development Website: 80% complete

Another basic example is the use of colour codes: Green may indicate the project is complete or nearing completion. Yellow could mean there are obstacles or resource issues. Red could mean the project has stalled or was abandoned. See the figure below for an example of another municipality’s metrics.

MDB Insight – Bonnyville Regional Economic Development Plan

Be bold, Bonnyville.

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Figure 15: Example of Strategy Monitoring Report

Complex Metrics Municipalities can use more sophisticated tools for corporate performance measurement. These tools come in various forms and will require much more staff time to coordinate a reporting structure. The WCCD Global Cities Registry provides the highest standard of community performance monitoring, in the form of ISO certification.

MDB Insight – Bonnyville Regional Economic Development Plan

Be bold, Bonnyville.

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MDB Insight – Bonnyville Regional Economic Development Plan

Be bold, Bonnyville.

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Technical Appendix Due to size constraints, all engagement results, documents reviews, and economic data collected can be found in a separate technical appendix document.

MDB Insight – Bonnyville Regional Economic Development Plan

Be bold, Bonnyville.

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