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DESTINY SSM PROGRESS REPORT Prepared by Kevin MacDonald Under the Direction of Dr. Jong You October 13, 2004 Ministry of Training, Colleges, and Universities Adjustment Advisory Program

DESTINY SSM PROGRESS REPORT...Recreation Activities and 7113 – Promoters (Presenters) of Performing Arts, Sports, and Similar Events with 274 full time jobs for the former and 500

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Page 1: DESTINY SSM PROGRESS REPORT...Recreation Activities and 7113 – Promoters (Presenters) of Performing Arts, Sports, and Similar Events with 274 full time jobs for the former and 500

DESTINY SSM PROGRESS REPORT

Prepared by

Kevin MacDonald

Under the Direction of

Dr. Jong You

October 13, 2004

Ministry of Training, Colleges, and Universities Adjustment Advisory Program

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E X E C U T I V E S U M M A R Y This report has been separated into two parts.

♦ The first section is an overview of Destiny’s achievements to date. In this section we look at the progress of the various initiatives linked to Destiny in terms of funds committed and jobs created.

The information is presented under the six different Growth Engines: Traditional and New Industry Development, Tourism Development, Small Business Development, Knowledge-based Development, Health, Social and Public Sector Development, and Trade and Export Development.

♦ The second section of the report is a look at a number of community economic indicators. SECTION I: DESTINY PROGRESS The highlights of the progress of Destiny Sault Ste. Marie are:

♦ Over $90 million in committed spending

♦ More than 1050 jobs created

♦ Hundreds construction jobs

♦ Highest level of committed spending is under Growth Engine #1 – Traditional and New Industry Development with nearly $75 million committed

♦ Greatest job creation has occurred under Growth Engine #4 – Knowledge Based Development with more than 1000 full time and in excess of 120 construction jobs created

♦ Using NAICS (North American Industrial Classification System) classifications the greatest job growth has occurred in industry 5614 – Business Support Services with more than 1000 full-time positions created while the greatest investment to date has occurred in industry 2213 – Sewage Treatment Facilities at more than $45million

♦ There is also a significant level of spending committed to industries 4841 – Highway, Street and Bridge Construction ($15 million), 3212 – Veneer, Plywood and Engineered Wood Product Manufacturing ($8 million), and 6113 – Universities ($6 million)

Although there is much that has been accomplished since the inception of the Destiny project, there is much yet to be accomplished. There are some major initiatives that are not yet in the actualization phase that will have a major impact in terms of future economic growth and diversification in Sault Ste. Marie.

October 13, 2004 Destiny SSM Progress Report 2

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Looking at these future initiatives in terms of potential spending and job creation the projections are for:

♦ More than $200 million in investment

♦ The creation of an additional 600 jobs

♦ The creation of an additional 1000 construction jobs

♦ The highest level of spending will be under Growth Engine #1 – Traditional and New Industry Development at over $150 million and under Growth Engine #2 – Tourism Development with nearly $80 million in spending

♦ The greatest level of job creation will be under Growth Engine #2 – Tourism Development with more than 300 full time positions and in excess of 1000 construction jobs

♦ The greatest investment will occur in industry 2211 – Electric Power Generation and Distribution (more than $150 million)

♦ The greatest projected job growth will occur in industries 7139 – Other Amusement and Recreation Activities and 7113 – Promoters (Presenters) of Performing Arts, Sports, and Similar Events with 274 full time jobs for the former and 500 construction jobs for the latter.

Industry 7139 also has the second highest level of expected investment at more than $50 million. This is largely due to the Legacy Quest (formerly Gateway) development.

From these results it is apparent that economic growth is occurring in numerous fields in Sault Ste. Marie. To that end, we are achieving the Destiny SSM objective of diversifying the economic base of the community of Sault Ste. Marie. Additional information gathered as Destiny continues to progress will enable the creation of a more complete picture of Destiny in future periods. SECTION II: COMMUNITY ECONOMIC INDICATORS The second major section of the report is a look at selected economic indicators. Currently the impact of Destiny is felt in the form of job creation, increased construction activities and infrastructure development. However, the future impact of Destiny will also need to be measured and knowing the state of the economy of Sault Ste. Marie in the first year of the Destiny program will give a base from which we can measure this progress. (This information comprises pages 19 thru 31 of this document).

October 13, 2004 Destiny SSM Progress Report 3

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The economic indicators chosen for the purpose of this report indicate the following:

♦ Recent rebound in commercial truck traffic over the International Bridge 6.7% increase in traffic in first five months of 2004 over the same period in the

previous year

♦ Conventions in Sault Ste. Marie 23% increase in revenue per convention since 2000 13% increase in average attendance

♦ The labour market in Sault Ste. Marie The unemployment rate for June 2003 – May 2004 was 9.1%

This is the same level as in the 2002 calendar year

♦ The housing market in Sault Ste. Marie Average selling price has climbed to $95,508 from $91,155 in 2001 Number of houses sold has increased 21.5% from 2001–2003 Number of houses listed for sale has increased 7.4% from 2001–2003

♦ Building construction in Sault Ste. Marie 36.6% increase in residential construction from the June 2001–May 2002 period to

the June 2003–May 2004 period 76% increase in the commercial construction from June 2001–May 2002 period to

the June 2003–May 2004 period

♦ Bankruptcies in Sault Ste. Marie 44% increase in annual consumer bankruptcies from the annual average of 249

between 1999 and 2003 10% increase in annual commercial bankruptcies from the annual average of 22

bankruptcies between 1999 and 2003

♦ Ontario Works recipients and Employment Insurance Claimants A 1221 case reduction in the average monthly Ontario Works caseload from 2000

to 2004 Average number of regular EI claimants has increased to 2142 in the June 2003 –

May 2004 period an increase of 400 over previous period This increase in EI claimants can be due to many factors one of which may

well be as a result of the decreased Ontario Works claimants – as people move off Ontario Works they move into the labour force, if they subsequently lose their employment they would then become EI claimants but not OW claimants

♦ Municipal Tax Assessment Municipal tax billings have risen from $89,057,410 in 2002 to $94,576,480 in 2004,

a 6.2% increase

October 13, 2004 Destiny SSM Progress Report 4

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There is much that has occurred in the economy of Sault Ste. Marie over the past few years and since the inception of Destiny. The data gathered to date indicates that activity is occurring in numerous sectors of the economy of Sault Ste. Marie. The economic indicators contained within this report lay a foundation from which we can measure the future progress of the economy of the community in meeting the objectives of Destiny Sault Ste. Marie. Earlier this year, in response to a variety of stimuli, a realignment of Destiny towards a focus on several key sectors occurred. These key areas for future development are: Energy and Value-added manufacturing under the Traditional and New Industry Development Growth Engine; Waterfront Development and Searchmont Expansion under Tourism Development; Information Technology, Science Works and Education under Knowledge-based Development; and Health Sector Opportunities under Health, Social and Public Sector Development. As part of this refocusing of Destiny priorities important industries such as transportation, communications, and public sector development will be considered as value-added infrastructure. This value-added infrastructure is necessary in providing the base for further development in these priority areas, development that will occur as Destiny continues to achieve its objectives. See chart: Key Economic Diversification Priorities Supported by Destiny SSM.

October 13, 2004 Destiny SSM Progress Report 5

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T A B L E O F C O N T E N T S

E X E C U T I V E S U M M A R Y ........................................................................................... 2

T A B L E O F C O N T E N T S ............................................................................................. 7

F O R E W O R D ......................................................................................................................... 8

I N T R O D U C T I O N ............................................................................................................ 9

M E T H O D O L O G Y ............................................................................................................ 10

S E C T I O N I : D E S T I N Y S A U L T S T E . M A R I E P R O G R E S S 11 GROWTH ENGINE #1 – TRADITIONAL AND NEW INDUSTRY DEVELOPMENT .............................. 11 GROWTH ENGINE #2 – TOURISM DEVELOPMENT ....................................................................... 12 GROWTH ENGINE #3 – SMALL BUSINESS DEVELOPMENT .......................................................... 12 GROWTH ENGINE #4 – KNOWLEDGE-BASED DEVELOPMENT ..................................................... 13 GROWTH ENGINE #5 – HEALTH, SOCIAL AND PUBLIC SECTOR DEVELOPMENT ......................... 14 GROWTH ENGINE #6 – TRADE AND EXPORT DEVELOPMENT ..................................................... 14

O V E R A L L P R O G R E S S T O D A T E .................................................................. 15

W H E R E D O W E G O F R O M H E R E ? ............................................................. 17

S E C T I O N I I : C O M M U N I T Y E C O N O M I C I N D I C A T O R S .... 18

COMMERCIAL TRUCK TRAFFIC ON THE INTERNATIONAL BRIDGE .................................................... 19 REVENUE PER CONVENTION - ANNUAL ......................................................................................... 20 EMPLOYMENT STATISTICS ............................................................................................................ 22 AVERAGE HOUSE PRICE ............................................................................................................... 23 HOUSE LISTINGS AND SALES........................................................................................................ 24 BUILDING ACTIVITY VALUES (JUNE 1 – MAY 31) ......................................................................... 25 CONSUMER BANKRUPTCIES .......................................................................................................... 26 BUSINESS BANKRUPTCIES ............................................................................................................ 27 AVERAGE ONTARIO WORKS CASELOADS (JUNE-MAY PERIOD)....................................................... 28 REGULAR EMPLOYMENT INSURANCE CLAIMS ................................................................................. 29 MUNICIPAL TAX BILLINGS ............................................................................................................ 30

C O N C L U S I O N ................................................................................................................. 31

A C K N O W L E D G E M E N T S ......................................................................................... 33

A P P E N D I X A DESTINY RECOMMENDATIONS..................................................... A

A P P E N D I X B NAICS CLASSIFICATIONS .................................................................B

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F O R E W O R D To show a “snapshot” of the progress of Destiny Sault Ste. Marie (DSSM) since its inception we have examined the progress of the various initiatives under the different Destiny growth engines and looked at economic indicators reflecting the state of the economy of Sault Ste. Marie. In this report, there are two separate components: one is an overview of the progress of various initiatives undertaken under the Destiny banner; the other is a look at some important indicators of the economic well being of the community. These indicators are: commercial vehicle traffic on the International Bridge; convention statistics; employment statistics (including participation rate, employment rate, and unemployment rate); average house prices; house listings and sales; construction values by type; consumer and business bankruptcies; the Ontario Works caseload; and the number of regular employment insurance claimants. This report is comprised in large measure of results for the period from June 1, 2003 to May 31, 2004 (where results are available – if they were not available the relevant time period is specified). Some statistics are compared directly to the same period of previous years (i.e. June-May) and others are compared to prior calendar years. In either instance the comparison is valid since each period encompasses a total of 12 months. The main aim of this report is to determine the progress that DSSM has made in achieving its targets in regards to job creation, diversification and economic development. To this end we will show the current progress of various initiatives begun under the Destiny project. Additionally, we will show job growth under the six growth engines laid out in the DSSM strategy.

October 13, 2004 Destiny SSM Progress Report 8

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I N T R O D U C T I O N How far has the economic diversification of Sault Ste. Marie progressed since the inception of Destiny? What are the community accomplishments? Are initial targets being met? Is the Destiny program on track in terms of moving forward in achieving its goals re job creation and economic diversification? Has Destiny achieved its objectives of increasing the municipal tax base and local population? This report is an initial attempt at measuring the success of Destiny since its inception. Future reports will build upon this one and further refine the information that is contained in it. Additionally, as we continue to move forward we will be able to provide a better picture of the progress of the various initiatives linked with Destiny. The numerous initiatives linked to the Destiny strategy are at various stages of completion. To date we have succeeded in updating our records on many of these initiatives. At the same time there are a few initiatives for which information gathering is incomplete. This is due to the dynamic environment in which these initiatives are taking place. Regardless, the data collected to this point do give us a useful snapshot of Destiny’s progress to date. The data collection will continue and as it becomes available they will be incorporated into subsequent reports. This report is looking at the progress that Destiny has achieved to date. Ultimately our aim is to provide progress reports of the Destiny project in terms of its objectives of seeing funds committed and jobs created for various initiatives, expanding the municipal tax base and increasing the population of Sault Ste. Marie. It must be remembered that as with the economy itself Destiny Sault Ste Marie is part of a system in flux. Destiny is not a static process lurching from one milestone to another, rather it is constantly moving forward, evolving and adapting to the dynamics of the community in which it is rooted. This report and subsequent reports are attempts to take snapshots of this process and as with a snapshot of a moving target there is often blurring of the picture. This blurring does not mean that the picture will not turn out, or that it cannot be taken, it just means that it may not be as clear as we would have hoped at any particular point in time.

October 13, 2004 Destiny SSM Progress Report 9

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M E T H O D O L O G Y The first section of the report deals with the progress that Destiny Sault Ste. Marie has made in its first year of operation in terms of direct job creation and direct spending. The impact of Destiny Sault Ste Marie on the economy of Sault Ste. Marie will in actuality be larger than its initial impact due to the multiplier effect so that the Destiny initiatives will ripple through the economy creating spin-off jobs and investment. In obtaining the information necessary to compile this report we have been contacting those individuals listed as contacts for each of the various Destiny initiatives in order to meet with them and conduct interviews. In these interviews we ask for information on the projected job creation, spending for each of the projects and actual job creation. This information is presented by growth engine as well by NAICS (North American Industrial Classification System) to see what impact Destiny is beginning to have on the industrial diversification of Sault Ste. Marie. The second section of the report is a look at selected economic indicators that give a picture of the overall economic health of the community of Sault Ste. Marie. These indicators are:

♦ International Bridge Crossings by commercial trucks

♦ Convention statistics for Sault Ste. Marie

♦ Employment statistics including employment rate, participation rate, and unemployment rate

♦ Average house prices

♦ House listings and sales

♦ Annual construction values by type of construction

♦ Consumer and commercial bankruptcies

♦ Ontario Works caseload,

♦ Number of regular EI claimants, and

♦ Municipal Tax billings. In the section titled Community Economic Indicators May 2003 – June 2004, each of the sources for the information is clearly identified.

October 13, 2004 Destiny SSM Progress Report 10

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S E C T I O N I : D E S T I N Y S A U L T S T E . M A R I E P R O G R E S S There were thirty-one recommended initiatives included in the document titled Sault Ste Marie Economic Diversification Strategy: Version 2 published in March of 2003 that helped lay the foundation for Destiny. These recommendations fall under the six Destiny growth engines (Traditional and New Industry Development, Tourism Development, Small Business Development, Knowledge-based Development, Health, Social and Public Sector Development, and Trade and Export Development) and serve as the initial basis for measuring the progress of Destiny. To date these recommendations (see appendix A for a complete list) have met with varying degrees of success. Many have been acted upon leading to the creation of jobs and economic growth in Sault Ste. Marie. While others are still in the concept phase, awaiting final go-ahead prior to the commencement of construction or operations. In all cases the recommended initiatives have assisted in laying the groundwork for Destiny to move forward and in achieving its objectives. Since the publishing of the aforementioned document in March of 2003 much has been accomplished. Destiny is currently linked to 60 initiatives under the various growth engines. Since its inception the initiatives linked with Destiny have led to the creation of more than 1050 full time positions, hundreds of person years of construction and the promise of more to come in the future. In discussion with representatives of the various initiatives under the Destiny banner we have gleaned information related to several important considerations: funds committed or projected to be spent on the project or activity, jobs created, potential job creation, progress of the project (concept, underway, completed, or deferred). As we continue to gather more information we will continue to update the overall progress of each project and the Destiny initiative as a whole.

Growth Engine #1 – Traditional and New Industry Development This growth engine refers to goods producing and information technology activities involving value added manufacturing, energy (natural resources), and information technology. (The information technology activities initially listed under this growth engine have been relocated under Growth Engine #4 –Knowledge-based Development). In the March 2003 Destiny document there were seven initiatives recommended for immediate action under this growth engine. Each of these recommendations has proceeded with different levels of success. The Odena Rail Spur and Industrial Marketing Strategy are completed and in operation. The Industrial Land Development Program and Comprehensive Zoning By-Law recommendations are each underway and at varying stages of completion. The other three recommendations – Galvanizing Steel Facility, Air Cargo, and Aircraft Industrial Opportunity recommendations – have also been acted upon but are still in the concept phase of development.

October 13, 2004 Destiny SSM Progress Report 11

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From the twenty-two initiatives included in the Destiny document of March 2003 under this growth engine, Destiny has grown to be linked with twenty-four initiatives. The initiatives for which we have up to date information account for nearly $75 million in spending, the creation in excess of 80 construction jobs and 50 full time positions. Additional construction jobs yet to be tabulated include, among others, those involved in the construction of the East End Sewage Treatment Plant upgrade. In addition there are numerous initiatives in the early stages of development that, when implemented, will lead to the creation of more than 200 full time positions, 200 construction jobs and the investment of in excess of $150 million.

Growth Engine #2 – Tourism Development This growth engine includes those activities attracting people from outside Sault Ste. Marie to visit the city and area. Ten of the recommended initiatives contained in the March 2003 Destiny document fall under this growth engine. As with the recommendations under Traditional and New Industry these recommendations have met with varying degrees of success. Important initiatives under this growth engine are the Legacy Quest development (formerly Gateway) and the new arena. These two initiatives will account for in excess of $70 million in spending, 800 person years of construction and the equivalent of 300 full time jobs. There are currently twenty-four initiatives linked to Destiny under the Tourism Growth Engine, the same number as were contained in the original Destiny document. Total projected spending under this growth engine is approximately $80 million while total job creation slated to be in excess of 1000 person years of construction, 300 permanent full time jobs and numerous temporary and seasonal positions by 2007. Current spending commitments under this growth engine amount to $1.2 million and there have been 5 full time positions and nine construction jobs created.

Growth Engine #3 – Small Business Development This growth engine includes those activities that support the growth and sustainability of businesses with less than 25 employees and have potential for wealth generation. There were two recommended initiatives under Small Business Development in the March 2003 document. These recommendations were related to the BRIDGE Business Plan and to the creation of a Business Website/Portal. The website recommendation is moving forward and is slated to become operational later this year. Since the writing of the Destiny document in March 2003, BRIDGE has ceased operations, however the business competition program is still under review.

October 13, 2004 Destiny SSM Progress Report 12

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Currently, there are thirteen initiatives in our records under this growth engine. This compares to the twenty-one initiatives initially outlined in the March 2003 document. This decrease in initiatives is due primarily to a number of them appearing elsewhere within Destiny such as the New Comprehensive Zoning By-law that is included under Traditional and New Industry Development or the business incubator initiative that is now a sub-initiative of the new ICT centre being constructed at Algoma University. The growth of small and medium sized enterprises is important since they are major sources of employment leading to economic growth, lower unemployment and a more vibrant community. Spending under this growth engine has been approximately $30,000 and one job has been created under the Job Creation Partnership program of HRSDC. Many of the initiatives under this growth engine relate to the creation of an infrastructure that will facilitate the growth of small and medium sized enterprises in the community.

Growth Engine #4 – Knowledge-based Development This growth engine includes those activities that support the knowledge-based economy, building on education, research and/or training that will support innovation. Additionally, information technology, relating to such activities as the ICT Centre and others has been moved to this growth engine. Of the initial thirty-one recommended initiatives contained in the March 2003 Destiny document eight of them fell under Knowledge-based Development. Each of the initiatives tied to these recommendations has moved forward since the publication of that document. The Algoma University ICT Centre is under construction and the E-commerce Contact Centre (new Sutherland facility) is nearing occupancy. There are nineteen initiatives under this growth engine linked with Destiny, an increase from the seventeen contained within the March 2003 document. Overall spending on the various initiatives under this growth engine has exceeded $13million. These initiatives have resulted in the creation of in excess of 1000 full time positions and 120 construction jobs. The majority of the job creation under this growth engine is due to the opening of the Sutherland Group facilities in the community. Their current location, combined with the new facility that will soon open will employ in excess of 1000 people. Two projects, the construction of the Sutherland facility and the construction of the ICT Centre at Algoma University account for the reported construction jobs created under this growth engine.

October 13, 2004 Destiny SSM Progress Report 13

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Growth Engine #5 – Health, Social and Public Sector Development This growth engine includes those activities involving public sector employment, a comprehensive integrated health care system and a coordinated social services system in the community. Under the recommended initiatives in the March 2003 Destiny document one was listed under this growth engine: Public Sector Employment. There are many facets to public sector employment in the community. A major component to this is an ongoing initiative involving such initiatives as attempts to get the Ontario Lottery and Gaming Corporation to return jobs to Sault Ste. Marie and in lobbying the provincial government to either return the Young Offenders facility to the community or to build a new one. There are ten initiatives currently in our records under this growth engine, one less than the number of initiatives listed in the March 2003 document. However, such important initiatives as the new Health Call Centre and the exploration of health sector opportunities were not included in the previous document and other initiatives have been either moved to other growth engines or combined into single initiatives. The initiatives listed under this growth engine account for more than $2 million in spending and could lead to the creation of in excess of 100 full time jobs. The majority of the spending under this growth engine pertains to the upcoming construction of a Health Call Centre by the Group Health Centre in collaboration with the Sault Ste. Marie Innovation Centre. The construction of the call centre will lead to the creation of twenty full time jobs, numerous construction jobs and will position the Group Health Centre well for further expansion of their operations in the future. It is important to note that much of the projected job creation under this growth engine depends on the success of efforts to lobby the provincial government on two fronts: to return OLGC jobs to Sault Ste. Marie (potential job gain of 100-500) and to reopen the old, or build a new, youth offender facility in the community (7-8 full time jobs), efforts that will result in the return, or creation of well paying, stable employment in the community.

Growth Engine #6 – Trade and Export Development This growth engine includes those activities that involve trade and export to support business growth. Again, as with Growth Engine #5, there was only one recommendation for this growth engine listed in the March 2003 Destiny document. This recommendation pertained to implementation of the Export Development initiative. Currently, there are three separate initiatives under the Destiny banner, a decline from the eleven contained in the March 2003 document. This reduction in the number of initiatives is largely due to the combining of a number of them into a few more expansive initiatives. Projected spending under this growth engine is $140,000 while projected job creation is 3 permanent positions.

October 13, 2004 Destiny SSM Progress Report 14

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O V E R A L L P R O G R E S S T O D A T E In acting upon the thirty-one recommended initiatives contained in the March 2003 Destiny document there has been a tremendous amount of progress made (see Appendix A). Several of the recommended initiatives have been completed or are nearing completion leading to job creation and construction in the community. Examples include the ICT Centre at Algoma University that is currently under construction at a cost of $6.1million and the Odena Rail Spur that was completed late last year connecting the Odena property to the rail line opening the door to further expansion of the property. Of particular importance has been the role played by the Industrial Marketing Strategy that has either led to firms locating their operations in Sault Ste. Marie or considering doing so at some future point in time. Additionally, there are several other recommendations that have moved forward but have yet to realize their full potential. Included in this group is the new comprehensive zoning by-law, the new Memorial Gardens project, the Art Gallery’s Animation Centre and the Legacy Quest development (formerly Gateway) At present there are sixty initiatives for which we either have gathered or are attempting to gather information. This is a decrease from the one hundred-one initiatives contained in the document titled Sault Ste. Marie Economic Diversification Strategy: Version 2 from March 2003. This decrease in initiatives is due to a number of factors including: the refocusing of Destiny on several key priority areas, and the combining of a number of the original initiatives. Of the ninety-three initiatives in the Destiny database thirty-two have been deferred, four have been completed and the remaining fifty-seven are either underway or still in the conceptual phase. The deferral is due either to the initiative not being feasible, initially being very broad and being developed into more specific initiatives, or the initiative not being identified in Destiny’s key community priorities. The initiatives for which we have up to date information account for committed spending of nearly $90 million and have led to the creation of in excess of 1050 full time jobs, hundreds of person years in construction and a handful of part time or temporary positions. As mentioned earlier there are additional construction jobs in relation to such activities as the construction of the East End Sewage Treatment Plant; however the information on job creation is unavailable at this time. Future spending on the various initiatives for which updated information has been gathered is projected to exceed $200 million; creating a minimum of 600 full-time/part-time positions and more than 1000 person years of construction. It is evidenced by these numbers that Destiny has achieved much in its first year and that there is still much more to be achieved in coming years.

October 13, 2004 Destiny SSM Progress Report 15

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Gauging the success of Destiny in achieving its goal of diversifying the economy of Sault Ste. Marie may best be measured by the impact that the initiatives linked to Destiny have had in creating jobs in various industries. To that end we have linked each of the initiatives to the major industrial classifications of NAICS (North American Industrial Classification System). In looking at the various Destiny initiatives in terms of their NAICS classification it is found that 28 separate 4-digit industrial classifications are represented. The greatest job growth to date has occurred in industry 5614 – Business Support Services where 1000 full time positions have been created. Meanwhile the highest amount of spending or committed spending falls under industry 2213 – Sewage Treatment Facilities. In regards to future spending and job creation the highest level of expected job creation falls under industry 7139 – Other Amusement and Recreation which is also expected to account for a large portion of future spending. Significant job creation and especially investment is expected to occur is industry 2211 – Electric Power Generation and Distribution where expected investment is expected to exceed $150million. Whether you utilize job creation or investment as the measuring stick it is evident that both are occurring in numerous economic sectors in Sault Ste. Marie. In looking at these numbers it must be remembered that the picture is less than complete, it is still blurred by the dynamics of the process of Destiny. In spite of this it is possible to assert that Destiny is achieving many of its targets. With the Destiny program being spread among so many different initiatives it is imperative that the focus be on what has been achieved and the things that will be achieved. As mentioned in the introduction it is necessary to think of Destiny as a program that is in flux, ever changing, morphing and adapting to the environment in which it operates. As we continue to gather more information about the activities currently underway it will be possible to get a better picture of what progress Destiny has made. By all accounts it has been a successful first year for Destiny and all signs point to an even better second year as many of the initiatives come to fruition and begin to have an impact in the community.

October 13, 2004 Destiny SSM Progress Report 16

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W H E R E D O W E G O F R O M H E R E ? On April 14, 2004, Destiny SSM held an Economic Forum to obtain input from a selected panel of experts. There were several recommendations that followed from the economic forum. Of primary importance were the following recommendations:

♦ DSSM should identify priorities and reduce projects to a handful (5-6) of asset projects

♦ Separate infrastructure (core minimums) outside of DSSM and focus on value-added infrastructure

♦ Find Champions to promote, support, and implement initiatives

♦ Monitor and set benchmarks for projects

These recommendations were further supported by the research contained in the report to the Destiny Steering Committee titled Community Economic Development: Other Communities Efforts and Successes, produced by Dr. Jong You and Melanie Splinter. The major result of the Economic Forum was a realignment of Destiny towards a focus on several key sectors: Energy and Value Added manufacturing under the Traditional and New Industry Development growth engine; Information Technology, Science Works and Education under Knowledge-based Development; Waterfront Development and Searchmont Expansion under Tourism Development; and Health Sector Opportunities under Health, Social and Public Sector Development. (To view the structure of the refocused Destiny strategy, please see the map on page 6) These selected areas will become clusters for future development and will be supported by infrastructure initiatives. It must also be noted that as part of this refocusing of Destiny priorities such critically important industries as transportation, communications, and public sector development are considered value-added infrastructure. This value-added infrastructure will work in conjunction with core infrastructure such as the sewage treatment plant to support further development under the key priorities. The setting of these key priority areas allows Destiny to focus on more achievable goals, focusing efforts where change can best occur and ensuring that the Destiny process is not bogged down by an overwhelming array of initiatives. Concentrating on fewer, more attainable, higher impact projects or a group of projects holds myriad benefits for Destiny and the community of Sault Ste. Marie. Among these are an increased ability to measure the success of Destiny, and an ability to maintain a focus on the task at hand. Additionally, sharpening this focus will enable Destiny to more readily trumpet its successes without having to face the possibility of having to defend its shortcomings, which unfortunately, often outshine, out dramatize and overshadow accomplishments. As we head into the second year of the Destiny program the impact of this realignment of Destiny will be felt. Through monitoring the progress of the various Destiny initiatives we will be able to gauge the overall progress of Destiny as it accomplishes its goals over the next year.

October 13, 2004 Destiny SSM Progress Report 17

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S E C T I O N I I : C O M M U N I T Y E C O N O M I C I N D I C A T O R S One of the difficulties is obtaining current information for some of these indicators – income levels, job numbers etc.. Although the difficulty in obtaining up to date information is a stumbling block in this process it is not an insurmountable one, nor does it obviate the validity of the data, at least in terms of trend analysis. Rather these gaps in the data represent areas in which our vigilance must be improved and areas which demand our attention moving forward to ensure that we have a complete picture of the progress of Destiny Sault Ste. Marie and the various initiatives undertaken as part of the Destiny project. We began by looking at a number of economic indicators and the change in their levels over the first year of the Destiny project. As with any initiative it must be remembered that often it is not within the beginning stages that an impact is felt, but rather it is the longer term that will more accurately indicate progress. These indicators provide a baseline, or foundation, from which we can measure the future progress of Destiny and the economic diversification of the community of Sault Ste. Marie. Over the course of the next year we will be able to create a much more accurate picture of the Destiny progress and the economic diversification of the community of Sault Ste Marie. For example, there is a time lag in the availability of Statistics Canada data on sector specific employment in Sault Ste. Marie. We can extrapolate employment figures from the size of the labour force and the employment, unemployment and participation rates, but we are unable to discern the areas in which employment is growing or shrinking. Access to updated StatsCan data that indicates the growth or shedding of jobs by major NAICS area will give a more accurate picture of the economic diversification of Sault Ste. Marie. When the data for the 2003 calendar year become available in the future they will be incorporated into a future report. On the following pages are the economic indicators that have been chosen to represent the state of the economy of Sault Ste. Marie over the past few years. These indicators are: International Bridge Crossings by commercial trucks; average convention revenue; number of conventions and average attendance; employment statistics including employment rate, participation rate, and unemployment rate; average house prices; house listings and sales; annual construction values by type; consumer and commercial bankruptcies; Ontario Works caseload; and number of regular EI claimants.

October 13, 2004 Destiny SSM Progress Report 18

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Commercial Truck Traffic on the International Bridge

1 4 7 ,4 0 3

1 3 7 ,8 0 4

1 2 8 ,9 9 91 2 8 ,0 8 7

1 2 5 ,3 0 0

1 2 8 ,4 4 3

1 1 0 ,0 0 0

1 1 5 ,0 0 0

1 2 0 ,0 0 0

1 2 5 ,0 0 0

1 3 0 ,0 0 0

1 3 5 ,0 0 0

1 4 0 ,0 0 0

1 4 5 ,0 0 0

1 5 0 ,0 0 0

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 Ju n 0 3 -M a y 0 4

Source: International Bridge Authority Over the past few years the level of commercial truck traffic on the International Bridge has been in decline. Over the most recent period from June 2003 to May 2004 bridge crossings for commercial vehicles increased by 3,362 or 2.5%. The fact that commercial truck traffic did not decline as rapidly as passenger vehicle traffic indicates that the community is still a vital crossing point for commercial traffic both entering and leaving Canada. Additionally, the current level of commercial truck traffic – 322 vehicles per day – is still well below that seen in recent years and indicates potential for growth of export-based industries in the Sault Ste. Marie area. In looking at the two leftmost columns it can be inferred that the difference in traffic is due solely to differences in the January – May periods of 2003 and 2004 since the other seven months of each 12-month period are shared between the two periods. Thus the increased commercial vehicle traffic of 3,362 represents an increase in the first five months of this year over the first five months of 2003. This represents an increase of 6.7% in commercial vehicle traffic in the first five months of this year from 50,271 to 53,633.

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Revenue Per Convention - Annual

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$63,606 $78,858 $85,329 $148,442 $63,327 $91,676 $75,625 $109,752 $115,343 $112,788

1995 1996 1997 1998 1999 2000 2001 2002 2003 Jan-M ay 2004

Source: Tourism Sault Ste. Marie Average revenue per convention reached a peak of $148,442 in 1998. Notwithstanding the fall from that high water mark the average revenue per convention has been on an upward trend over the past decade. Since 2000 the average revenue per convention has increased from $91,676 to $112,788 an increase of $21,122 or 23%.

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Number of Conventions and Attendance

0

50

100

150

200

250

300

350

400

C onventions 71 53 63 41 67 66 53 58 51

D elegates per 154 .2 183 .2 172.4 338.3 144.7 209 .5 168 .1 250 .9 232.6

1995 1996 1997 1998 1999 2000 2001 2002 2003

Source: Tourism Sault Ste. Marie The number of conventions held in Sault Ste. Marie has held relatively constant over the past decade but has shown a modest decline over previous years. The peak in number of conventions was in 1995 while another peak was evidenced in 1990 and 1991. The number of conventions held in 2002 was equal to the nine-year average of 58 while the number in 2003 represents a 12% decline from the nine-year average. The number of conference attendees held constant for the last two years, but has shown a modest increase notwithstanding the peak of 338.3 attendees per conference seen in 1998. The number of attendees per convention in 2003 was 232.6 a 13% increase from the nine year average of 205.5.

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Employment Statistics

0%

10%

20%

30%

40%

50%

60%

70%

Unemployment 10.8% 6.8% 9.1% 8.9% 9.1%

Employment 52.5% 55.5% 55.7% 53.3% 54.0%

Participation 58.9% 59.6% 61.3% 58.6% 59.4%

2000 2001 2002 2003 Jun 03 - May 04

Source: HRSDC In the period from 2000 to May 2004 the employment market in Sault Ste. Marie has held relatively steady in terms of employment, unemployment and participation. Looking at the monthly numbers indicates some seasonal variation in the numbers but overall the employment picture in the community is steady. In 2000 the labour force was 40,600 growing to 41,000 in 2001. From 2001 to 2002 the labour force again expanded to a high of 41,800 before falling to 39,400 in 2003.

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Average House Price

$88,000

$89,000

$90,000

$91,000

$92,000

$93,000

$94,000

$95,000

$96,000

$97,000

Average Price $94,916 $94,529 $91,491 $91,155 $92,227 $93,881 $95,905.58

1998 1999 2000 2001 2002 2003 2004 - YTD

Source: Sault Ste Marie Real Estate Board The average selling price of houses in Sault Ste. Marie has rebounded from a low of $91,155 in 2001 to $$95,905 in the first five months of this year. This represents an increase of 5.2% in the average selling price of a home in this period. The average selling price of homes has been increasing yearly since the low of 2001 and is currently at its highest level since 1998. Although there are several other factors at play in the housing market – low interest rates, reduction in CMHC requirements for down payment – it is evident that the housing market in Sault Ste. Marie is strong. One factor that may have a large impact on the rebound in house prices is the ready availability of credit at low interest rates. With current economic conditions leading to favourable borrowing conditions there are many who are opting to purchase newly constructed homes or more expensive homes because they can afford the lower payment rates.

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House Listings and Sales

0

500

1000

1500

2000

2500

Units Sold 943 874 815 789 951 959

New Listings 2121 2094 1721 1754 1902 1884

1998 1999 2000 2001 2002 2003

Source: Sault Ste. Marie Real Estate Board As with the average selling price of homes there has been a rebound in the number of units sold. Last year saw 959 houses sold representing the highest level since 1998 and an increase of 170 units from 2001. This represents an increase in units sold of 21.5% from 2000 to 2003. Over the past few years the number of new listings of houses listed for sale has remained fairly constant with small variations from one year to the next.

October 13, 2004 Destiny SSM Progress Report 24

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Building Activity Values (June 1 – May 31)

$-

$5 ,000 ,000

$10 ,000 ,000

$15 ,000 ,000

$20 ,000 ,000

$25 ,000 ,000

$30 ,000 ,000

$35 ,000 ,000

$40 ,000 ,000

$45 ,000 ,000

R es iden tia l $19 ,219 ,399 $15 ,918 ,387 $19 ,331 ,423 $21 ,755 ,774

C om m erc ia l $7 ,453 ,993 $9 ,281 ,532 $14 ,879 ,713 $16 ,397 ,298

Indus tria l $6 ,208 ,600 $6 ,292 ,589 $2 ,578 ,893 $1 ,607 ,720

Institu tiona l $6 ,880 ,798 $18 ,175 ,319 $40 ,647 ,355 $9 ,593 ,241

2000-2001 2001-2002 2002-2003 2003-2004

Source: City of Sault Ste. Marie The value of building construction has fluctuated on an annual basis. However it is evidenced from the graph that the value of home construction and commercial construction has increased over that seen in 2000. In 2003-2004 residential construction was $21,755,744 an increase of $2,536,375 or 13.2% from the 2000-2001 period. In the last two June – May periods, from 2001-2002 to 2003-2004 the value of residential construction has increased by $5,837,387 or 36.6%. From 2001-2002 to 2003-2004 commercial construction increased by $7,115,766 an increase of 76.6%. The year over year decline in total construction from $77,437,384 in the 2002-2003 period to $49,354,033 can be attributed to the drop in institutional construction that had risen rapidly between 2001 and 2003. However, total construction value in the 2003-2004 period was 24.1% higher than the total of $39,762,790 in the 2000-2001 period.

October 13, 2004 Destiny SSM Progress Report 25

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Consumer Bankruptcies

1 0 0

1 5 0

2 0 0

2 5 0

3 0 0

3 5 0

4 0 0

1 8 9 1 9 2 2 8 7 2 8 3 3 3 3 3 5 8

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 J u n e 0 3 - M a y 0 4

Source: Industry Canada – Office of the Superintendent of Bankruptcy Consumer bankruptcies over the time period studied have shown a continued increase. The 358 consumer bankruptcies in the June 2003 – May 2004 period represent an increase of 169 from the 1999 calendar year, an increase of 89%. The 358 bankruptcies is also 44% above the average of 249 bankruptcies between 1999 and 2003.

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Business Bankruptcies

0

5

1 0

1 5

2 0

2 5

3 0

12 18 26 2 2 2 3 2 2

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 03 Ju n e 03 - M a y 0 4

Source: Industry Canada – Office of the Superintendent of Bankruptcy Business bankruptcies, having shown an increase from 12 in 1999 to 26 in 2001, have remained relatively constant during the time period studied. The average number of bankruptcies is 20.5. The number of business bankruptcies in the June 2003 – May 2004 period represents a 10% increase over the average for the 1999 – 2003 period and also represents a decline of 15% from the peak of 26 bankruptcies in 2001.

October 13, 2004 Destiny SSM Progress Report 27

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Average Ontario Works Caseloads (June-May period)

Ja n Fe b Ma r Apr Ma y June July Aug Se pt Oct Nov De c

a ve ra ge m onthly

ca se s

% cha nge

from 2000

2000 3808 3766 3784 3729 3818 3870 3622 3559 3243 3028 2971 2882 35072001 2865 2804 2821 2774 2809 2833 2682 2628 2547 2329 1997 2284 2614 -25%2002 2260 2250 2174 2224 2321 2361 2296 2231 2114 2052 1996 1990 2189 -38%2003 2039 2028 2036 2046 2135 2130 2095 2110 2048 2050 2024 1970 2059 -41%2004 2217 2275 2387 2243 2308 2286 -35%

3104

2377

2110 2155

0

500

1000

1500

2000

2500

3000

3500

2000-2001 2001-2002 2002-2003 2003-2004

Cas

eloa

d

Source: Ontario Works From 2000 to 2004 there has been a 35% decline in the average monthly Ontario Works Caseload in Sault Ste. Marie. There are numerous factors involved in this decline but it is reasonable to assert that this decline is due, at least in some part, to Ontario Works recipients finding employment in the community. Much of this decline has been attributed to the opening of the various call centres in the community.

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Regular Employment Insurance Claims

1000

1500

2000

2500

3000

2001-2002 1621 1724 1709 1539 1384 1647 2512 2257 2240 2253 2167 1895

2002-2003 1588 1665 1610 1324 1156 1293 1713 2133 2090 2161 2002 1894

2003-2004 1846 1937 2136 1968 1895 1987 2251 2496 2393 2525 2323 1947

Jun Jul Aug Sept O ct Nov Dec Jan Feb Mar Apr May

Source: Human Resource Skills Development Canada The number of regular EI claimants – EI claimants actively seeking work and excluding sick, maternity and parental leave – has increased slightly over the past couple of years. The average number of claimants in the June 2001 to May 2002 period was 1912 a month while in the same period from 2003 to 2004 the average was 2142 per month. This represents an increase of 230 claimants per month or 12%. For the June-May period of 2002-2003 the average number of EI claimants was 1719 per month. The increase in claimants from the 2002-2003 period to the more recent 2003-2004 period was 423 claimants per month, an increase of nearly 25%. Some of the increase in EI claimants can be attributed to a number of individuals previously on Ontario Works obtaining employment and subsequently collecting EI when that employment ended.

October 13, 2004 Destiny SSM Progress Report 29

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Municipal Tax Billings

2000 2001 2002 2003 2004*Tax Billing 91,715,150$ 89,871,545$ 88,548,145$ 91,710,378$ 94,076,329$ Supplementary Billing 1,171,719$ 703,046$ 509,265$ 719,495$ 500,151$ Total 92,886,869$ 90,574,591$ 89,057,410$ 92,429,873$ 94,576,480$

* additional supplementary taxes will be billed by the end of the year

2000 2001 2002 2003 *2004Tax Billing

SupplementaryBilling

Source: Tax Department City of Sault Ste. Marie Municipal tax billings have risen to $94,576,480 in 2004, up from a low of $89,057,410 in 2002, a 6.2% increase.

October 13, 2004 Destiny SSM Progress Report 30

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C O N C L U S I O N In the introduction several questions were asked in relation to the progress that Destiny has made to date. In answer to these questions it can be emphatically stated that Destiny has made great strides in achieving that which it set out to do. These are the accomplishments of Destiny to date:

♦ In excess of 600 permanent full-time jobs created

♦ Nearly $90 million in committed spending

♦ Hundreds of person years of construction created In addition there is more to come:

♦ In excess of $120 million in projected spending

♦ Future job creation in excess of 600 full-time/part-time jobs and 1000 person years of construction

Destiny Sault Ste. Marie is at its heart about diversifying the economy of Sault Ste. Marie. In this overview of the various initiatives related to Destiny it is evident that this diversification is occurring. These are the highlights of that diversification:

♦ For committed/completed projects The majority of committed spending has occurred in NAICS industry 2213 –

Sewage Treatment Facilities which falls under Growth Engine #1 – Traditional and New Industry Development

The majority of job creation has occurred in NAICS industry #56 – Business Support Services under Growth Engine #4 – Knowledge Based Development

♦ As for pending projects The majority of spending is slated to occur under Growth Engine #2 – Tourism

Development led by NAICS industry 7139 – Other Amusement and Recreation and industry 7113 – Promoters (Presenters) of Performing Arts, Sports, and Similar Events that will see the largest industry specific investment in the future

The majority of job creation will occur under Growth Engine #2 with in excess of 300 full time jobs and 1000 person years of construction slated to be created in industries 7139 and 7113

These highlights reflect the progress that Destiny has made in diversifying the economy of Sault Ste. Marie. There are three separate Growth Engines and four separate NAICS industry classifications highlighted here indicating the progress of Destiny towards the achievement of this goal.

October 13, 2004 Destiny SSM Progress Report 31

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A look at the selected economic indicators gives us a look at the overall economic situation in Sault Ste. Marie. There has been a recent rebound in commercial truck traffic on the International Bridge but there is room for growth in this area since current traffic levels are below those evidenced in the past. There has been a tremendous reduction in the number of Ontario Works recipients since the year 2000 with the current monthly average of recipients being 35% below the number found in 2000. The flipside of this is witnessed in recent increases in regular EI recipients that may indicate the transient nature of some of the jobs being created in the community. Overall the economic situation in the community appears to be strengthening although, due to a variety of mitigating factors, there is still some weakness in such indicators as personal bankruptcies and the convention sector. As Destiny moves forward and some of its initiatives come to fruition many of these mitigating factors will be addressed (i.e. lack of space for conventions, lack of high paying, stable employment) and their negative impact will be lessened. In essence the progress and success of Destiny is not shown in the indicators of the overall economy of Sault Ste. Marie because it takes time for the full impact of Destiny to be felt in the economy and there are many other influences on the economic health of this community. However, in future years, as the effects of Destiny begin to ripple through the economy of Sault Ste. Marie it will become possible to look back and measure the impact that Destiny has had on the overall economy. The economic indicators contained within this report provide a base from which we can measure the future impact of Destiny on the economy of Sault Ste. Marie. This base will enable the measurement of Destiny’s success in achieving its main objectives of diversifying the economy, creating new jobs, expanding the municipal tax base and increasing the population of Sault Ste. Marie. Although the data presented do not offer a complete picture of the overall progress of the Destiny project they do offer a glimpse of what Destiny is accomplishing, of what it can accomplish. As we move forward in this process the picture will become clearer and the impact of Destiny will be better understood with hindsight rather than foresight. This report provides us with an overview of what Destiny has accomplished since its inception and of where it is headed. This snapshot should serve as an indicator of the change that Destiny has accomplished, of what it can accomplish, and of what it needs to accomplish in the future.

October 13, 2004 Destiny SSM Progress Report 32

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A C K N O W L E D G E M E N T S

Bill Therriault.......................................................Destiny Sault Ste. Marie

Erika Luoma Szostak ...........................................Destiny Sault Ste. Marie

Susie Lauzon........................................................Destiny Sault. Ste Marie

Don McConnell....................................................City of Sault Ste. Marie

Bruce Strapp.........................................................Economic Development Corporation

John Febbraro.......................................................Economic Development Corporation

Norm Jaehrling.....................................................Economic Development Corporation

Ian McMillan .......................................................Tourism Sault Ste. Marie

Nevin Buconjic ....................................................Sault Ste. Marie Enterprise Centre

Brian Irwin...........................................................Community Development Corporation

Maurice Kukoraitis ..............................................City of Sault Ste. Marie

Joe Sniezek...........................................................City of Sault Ste. Marie

Kristine Thomas...................................................City of Sault Ste. Marie

Raymond Running ...............................................Human Resource Skills Development Canada

Tannis Wengel .....................................................Electronic Data Systems (EDS)

Kim Seabrook ......................................................Sutherland Group

Claudette Yanni ...................................................NCO Financial Group (formerly RMH)

Randy Ayotte .......................................................Ontario Works

Dr. Linda Savory-Gordon ....................................Algoma University College

Sault Ste. Marie Real Estate Board

International Bridge Authority

October 13, 2004 Destiny SSM Progress Report 33

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APPENDIX A

Destiny Recommendations (from March 2003 Document)

October 13, 2004 Destiny SSM Progress Report A

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October 13, 2004 Destiny SSM Progress Report A

S T A T U S O F M A R C H 2 0 0 3 D E S T I N Y S S M I N I T I A T I V E S

(as of October 13, 2004)

Growth Engine Initiative Existing Status

Industrial Marketing Strategy

Meeting objectives - Scheduled for completion December 04 -Under review for possible extension beyond 2004

Aircraft Industrial Opportunity

Not yet established

Industrial Land Development

Completed July 04; 142 acres of serviced, industrial land at Leigh’s Bay Road; Melamine plant to be built on part of the land; working on extended rail spur

Odena Rail Spur Construction completed – January 04

Galvanizing Steel Facility

Feasibility study completed and IMS and EDC still working on this

Air Cargo Study completed – not progressing at this time

Traditional and New Industry Development

New Zoning By-Law Nearing completion

Gateway Project Currently negotiating for private partners in the development

Searchmont Resort Expansion Studies

Study completed to determine long term and short term infrastructure needs; Need to implement immediate and near term solutions from the Water and Wastewater evaluation

Sault Ste. Marie Canal

Federal Government not proceeding – City will continue to push/advocate

New Arena Commitment made – completion set for 2006

Museum Ship Norgoma

Code compliance study underway – objective is to upgrade through HRDC initiative

Tourism SSM Marketing initiatives ongoing

Tourism Development

Animation Centre Feasibility study completed – Art Gallery Board must now determine next steps re location and proceeding

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October 13, 2004 Destiny SSM Progress Report A

Growth Engine Initiative Existing Status

Canadian Bushplane Heritage Centre

Upgraded Object Theater in place

Waterfront Boardwalk

NOHFC approved (March 04) Stage #1 application for major waterfront upgrade including boardwalk extension; waiting for other funders before proceeding with Stage #2 application

Tourism Development

Downtown Trolley Study indicates not viable at this time

Bridge Business Plan Competition

Completed

Small Business Development Business

Website/Portal Being developed, will be in place by beginning of 2005

AUC ICT Centre Funding approved, to be finished construction in late 2004

E Commerce Contact Centre

Building completed; Sutherland group moved in.

Innovation Centre – Construction

Agreement between GHC and IC will result in beginning the construction this year

Science Works Feasibility study completed May 04

ULERN Services have been expanded – presently relocated in Great Lakes Research Centre

Innovation Centre Operations

Funding secured for 2004, Comprehensive review to be undertaken this year re where it fits within economic community

ADNet Bandwidth Ongoing

Knowledge-Based Development

S College RR Training Institute

Announced, was to commence fall 2004; deferred to next academic year

Health, Social and Public Sector Development

Employment expansion and retention

Business cases have been submitted to government re. OLGC, YOA etc. Actively promoting two other promising Public Sector Initiatives

Trade and Export Development

Export Development Initiative

This former RAPIDS component has be amalgamated into EDC and initiative is ongoing

CQI Quality Initiative Ongoing and successful

Naturally Gifted Campaign Under review, not yet implemented

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APPENDIX B

NAICS Classifications (for Destiny SSM Initiatives)

October 13, 2004 Destiny SSM Progress Report B

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Initiatives by NAICS (North American Industrial Classification System) Designation

Initiative NAICS Description of NAICS ClassificationAboriginal Economic Development 5614 Business Support ServicesAircraft MRO 4881 Support Activities for Air TransportationAirport Improvements 4881 Support Activities for Air TransportationAnimation Centre 7121 Heritage InstitutionsAuto Parts Distribution Centre 4931 Warehousing and StorageBio-Oil Cogeneration Plant 2211 Electric Power Generation and DistributionBoardwalk Extension 7139 Other Amusement and RecreationBushplane Object Theatre 7121 Heritage InstitutionsBusiness Development Programs 5614 Business Support ServicesBusiness Opportunities Identification 5614 Business Support ServicesBusiness to Business Matching 5614 Business Support ServicesBusiness Web Portal 5415 Computer Systems Design and Related ServicesCDC Investment Fund 5614 Business Support ServicesCentre for Forestry Excellence 5417 Scientific Research and DevelopmentConstruct Buildings on Spec. 2362 Non-residential Building ConstructionCorrugated Recycling Plant 3222 Converted Paper Product ManufacturingDeep Sea Port 4883 Support Activities for Water TransportationDowntown Tourism Development 7139 Other Amusement and RecreationEast End Sewage Plant 2213 Sewage Treatment FacilitiesEnvironmental Policies 5614 Business Support ServicesFestivals, Cultural Activities 7139 Other Amusement and RecreationFirst Nations Tourism 7139 Other Amusement and RecreationGalvanizing Steel Facility 3328 Coating, Engraving, Heat Treating, and Allied ActivitiesGaming Masters Program 6113 UniversitiesGateway Development 7139 Other Amusement and RecreationHealth Call Centre 5614 Business Support ServicesHigh Speed Bandwidth 5181 Internet Service ProvidersICT Centre 6113 UniversitiesIndustrial Land Development 2372 Land SubdivisionIndustrial Marketing Strategy 5614 Business Support ServicesInnovation Centre Business Plan 5419 Other Professional, Scientific, and Design Services

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Invasive Species Centre 5417 Scientific Research and DevelopmentMaster Trail 7139 Other Amusement and RecreationMelamine Lamination Plant 3212 Veneer, Plywood and Engineered Wood Product ManufacturingMS Norgoma Refurbishment 7121 Heritage InstitutionsMultimodal Terminal 4889 Other Support Activities for TransportationMunicipal Solid Waste Energy 2211 Electric Power Generation and DistributionNew Arena 7113 Promoters (Presenters) of Performing Arts, Sports, and Similar EventsOdena Rail Spur 4821 Rail TransportationOLGC Recuperation 9129 Other Provincial ServicesOvercoming Barriers to Successful Community Development 5419 Other Professional, Scientific, and Design ServicesPig Iron Production Plant 3329 Other Fabricated Metal and Product ManufacturingPrince Township Wind Energy 2211 Electric Power Generation and DistributionPUC High Speed Internet 5181 Internet Service ProvidersRailroad Training Institute 6112 Community Colleges and CEGEPsRunway Park 7139 Other Amusement and RecreationSault Canal National Historic Site 7121 Heritage InstitutionsScience Works 5417 Scientific Research and DevelopmentSearchmont Expansion 7139 Other Amusement and RecreationSkatepark 7139 Other Amusement and RecreationSmart Park 5614 Business Support ServicesSmart Park Development 2372 Land SubdivisionSoftware Solutions 5415 Computer Systems Design and Related ServicesSSM HR Strategy 5419 Other Professional, Scientific, and Design ServicesThreaded Pipe Processing 3312 Steel Product Manufacturing from Purchased SteelTour Train Improvements 4879 Scenic and Sightseeing Transportation, OtherTourism Promotion 5614 Business Support ServicesTruck Route 2373 Highway, Street, and Bridge ConstructionWater Resource Centre of Excellence 5419 Other Professional, Scientific, and Design ServicesWildlife and Eco-Tourism 7139 Other Amusement and RecreationYoung Offenders Fac. 9121 Provincial Protective Services