Final Report Prescott-Russell Community Development Corporation Prescott and Russell Economic Development Plan February 22, 2011

This report is made possible thanks to the following partners:

Contents 1 Introduction & Executive Summary ...... 3 2 SWOT Assessment ...... 7 2.1 Strengths ...... 7 2.2 Weaknesses ...... 8 2.3 Opportunities ...... 9 2.4 Threats ...... 10 3 Value Proposition and Strategic Focus ...... 12 3.1 Areas of Convergence: Agriculture at the centre ...... 14 3.2 Strategic Economic Targeting ...... 17 3.2.1 Strategic Economic Targeting Sweet Spot ...... 21 3.3 Creative Placemaking ...... 25 3.3.1 Creative Placemaking Sweet Spot ...... 28 3.4 The „Pyramid of Support‟ ...... 33 4 Geography and Economic Opportunity ...... 39 4.1 Prescott-Russell and the Megaregion ...... 40 4.2 Linking to the Megaregion ...... 41 4.3 Mapping Prescott-Russell‟s Economic Opportunities ...... 43 5 New Directions in Tourism Structure ...... 50 5.1 Best Practices: Tourism Marketing and Development Organizations...... 54 5.1.1 Ottawa Valley Tourist Association ...... 54 5.1.2 Taste the County, Prince Edward County ...... 55 5.1.3 Québec City Tourism ...... 55 5.1.4 Australian Regional Tourism Network ...... 56 5.2 Recommended Structure for Prescott-Russell ...... 56 5.2.1 Board of Directors ...... 57 5.2.2 Pillars of Growth ...... 58 5.2.3 Committees ...... 58 6 Strategic Recommendations and Action Plan ...... 60

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1. Introduction & Executive Summary The Canadian economy has recently experienced a rapid and widespread series of fundamental changes that has prompted a significant restructuring of local economic trends and activities. While measures of GDP and unemployment and investment are assessed at the national level, the realities behind these measures are played out in individual communities across the country, where companies survive or fail, entrepreneurs succeed or fall short, and workers confront job loss or opportunity. In a time of economic uncertainty, it is vitally important that local economic planning take centre stage, and that the resources of communities – both private and public – are brought together in an effort to ride the winds of change, and navigate communities towards the most promising and rewarding opportunities in the emerging economy of the 21st Century.

Recently, the United Counties of Prescott and Russell have chosen to follow this path. In the face of economic uncertainty and change, the community has chosen to proactively and concretely examine their most promising economic opportunities, and to develop a tangible, practical plan for growing the local economy. Prepared over the course of 2010, this present document represents the culmination of a wide-reaching and exhaustive process of research, consultation, visioning and strategic planning, all with the goal of building the strongest, most dynamic and best-positioned local economy for the communities of Prescott-Russell.

Traditional approaches to economic development planning centred in the identification of key economic target sectors for a community, a discrete list of three or four industry types that a community would seek to recruit and grow within its boundaries. But in an era of globalization, rapid technology change, environmental concern, and knowledge industries the old approaches have ceased to be effective. This strategy takes as its starting point the notion that as the economy changes, so too must economic development. For Prescott-Russell, this means that, going forward, economic development must be grounded in a singular and distinct approach to economic growth, one that builds upon the unique nature and assets of the community to articulate an economic vision that learns from the success of others in the global village, but focuses like a laser beam on opportunities, strategies and values found only in the economy of Prescott-Russell itself. In this sense, the purpose of the economic development strategy is to create a “value proposition” for investment and economic opportunity in Prescott-Russell, one that stakes a claim to certain economic activities, and seeks to position the community as the single most appropriate place to undertake these activities.

To make this case, the strategy focuses on the concept of “convergence”. In technological terms, convergence is the idea that technologies with distinct functionalities evolve into technologies that overlap. Biology and information technologies merge into the field of bioinformatics, for example. In an economic development context, the idea of convergence suggests that traditional economic sectors (such as agriculture or manufacturing) are starting to overlap in areas that are producing new economic opportunities and “clusters” of economic activities. By concentrating on the areas of overlap between traditional economic strengths and supporting the development of these new clusters of activity communities can diversify their

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economies away from struggling sectors to new areas of economic opportunity, where local strengths create opportunities which other communities are not positioned to pursue.

To follow this approach, the project team behind this strategy (which included experts from both within Prescott-Russell and without) conducted an extensive research process, with the results compiled in a comprehensive background research report that accompanies this main document. The background research report includes:

 A highly detailed Economic Base Analysis, examining economic and demographic trends and statistics for Prescott-Russell to identify historic trends and characteristics, and to project future trends and realities for the region‟s economy

 A broad summary of a wide-ranging series of Public Consultations and Surveys, including one-on-one interviews with key community and business leaders, an online survey of local residents, a series of facilitated public workshops, and insights from an international peer review team of leading economic development experts from across Canada, the United States and Europe

 A wide-ranging Industry Sector Analysis exploring labour force issues and industry concentrations within the community, and ranking them against similar measures across the province of Ontario

 A detailed overview of key Economic Target Sectors in the region, including agriculture, manufacturing, transportation, tourism and cultural industries, including high level analysis of national and international trends and emerging opportunities, combined with detailed discussions of how those high-level trends could be utilized to create opportunity within Prescott-Russell

 A detailed SWOT Assessment exploring the community‟s strengths, weaknesses, opportunities and threats from an economic development perspective

 An expert exploration of the concept of the creative class theories of Dr. Richard Florida and others, and the growing movement to pursue the development of creative rural economies, with a particular exploration of how this could be achieved in Prescott- Russell

All of this background research leads into the tangible and action-oriented content of this main report. While the background report stresses information and analysis, this strategy document turns its attention to action and implementation.

This report begins with a SWOT Assessment exploring the community‟s strengths, weaknesses, opportunities and threats from an economic development perspective. It then explores the practical aspects of convergence in the local economy: which sectors of the economy are beginning to converge, and what does that tell the community about the next generation of economic opportunities. The strategy identifies two key areas of interest, one focused on strategic economic convergence, and the second on opportunities for creative placemaking.

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The report‟s chapters on strategic economic convergence describe the coming together of three key economic sectors (agriculture, manufacturing and the broad transportation, logistics and warehousing sector), areas of traditional strength in the local economy where areas of overlap are creating a highly compelling value proposition for Prescott-Russell which may be used to attract new investment, anchor the growth of existing businesses, and position new entrepreneurs for significant success. The analysis of this convergence area points to specific opportunities in fields such as:

 biomaterials, biofuels and bioproducts

 green industries and alternative energy production

 food processing

 logistics and distribution

Included in the analysis of these opportunities is work to identify economic development opportunities up and down the supply chain of companies active in these areas.

The second area of convergence explored in this report is the area of creative placemaking, where strengths in agriculture and significant environmental assets are linked with recreation, culture and tourism opportunities to define a newly emerging aspect of economic potential in Prescott-Russell. This area of convergence explores the potential of significant new tourism developments, but also looks to continuously improving local quality of life and quality of place to better retain existing residents, workers and talent while simultaneously attracting new creative and knowledge workers to the region. Specific opportunities and activities explored in this portion of the strategy include:

 agritourism

 ecotourism

 culinary tourism

 festivals and events

 educational opportunities

To facilitate much of this work, the report also provides a detailed model for a new regional tourism structure for Prescott-Russell, to be focused primarily on destination development and the growth of the tourism industry.

This material leads directly to the identification of two over-arching goals for economic development in Prescott-Russell. The first of these goals is to facilitate new economic opportunities and collaborations based on convergence, creativity and talent. To achieve this goal, the strategy lays out eights specific objectives, each supported by a number of specific actions:

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1. Investigate the feasibility of new regional organizations and committees to lead the implementation of various aspects of this strategy (supported by four actions)

2. Focus external investment attraction efforts on the activities in the convergence between agriculture, manufacturing, and transportation and logistics (supported by six actions)

3. Establish Prescott-Russell as a “green” region and centre for research and development of bio-applications in manufacturing, transportation and energy (supported by six actions)

4. Develop an incubation program focused on activities in the convergence areas between agriculture, manufacturing and transportation (supported by five actions)

5. Develop and enhance the Business Retention and Expansion (BR&E) activities in Prescott-Russell with technology-based approaches (supported by three actions)

6. Identify education and training opportunities in an effort to increase educational attainment and technical skill within the local labour force (supported by three actions)

7. Undertake activities focused on building the creative rural economy in Prescott-Russell with the priorities of promoting connectivity and collaboration, and attracting and retaining creative workers (supported by four actions)

8. Develop a creative and cultural industries incubation program supporting small businesses and events in the tourism, cultural, hospitality and arts sector (supported by six actions)

The second goal articulated in the economic development strategy is to create an unparalleled quality of place and remarkable visitor experiences. To achieve this goal, the strategy lays out four specific objectives, each supported by a number of specific actions:

1. Reorganize the tourism development structure and activities to better recognize the sector‟s influence on other sectors of the local economy as well as quality of place (supported by four actions)

2. Build the capacity of Prescott-Russell to attract and retain multi-day tourist visits (supported by six actions)

3. Brand Prescott-Russell within the context of its agricultural strengths, natural heritage assets and rural economy as a means of differentiating the region from its competitors (supported by four actions)

4. Enhance the built environment and physical infrastructure in Prescott-Russell in order to appeal to a wider range of visitors and residents (supported by five actions)

By pursuing these twelve objectives (enacted through 56 separate action initiatives) Prescott- Russell will create a strong foundation for economic development in the emerging economy of 2st Century Canada.

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2. SWOT Assessment Drawing on the results of the various research and consultation efforts, a SWOT Assessment (Strengths, Weaknesses, Opportunities and Threats) was undertaken to examine existing strengths and weaknesses in Prescott-Russell‟s economy, as well as potential opportunities for development or threats that may hinder future development. The analysis will assist with identifying Prescott-Russell's ability to support the attraction, retention and expansion of business and industrial investment, its capacity to deliver on economic development activities and programming and the overall direction of the strategy and the sustainability of the counties over the longer term.

The key findings of the SWOT Assessment are summarized below.

2.1 Strengths It is essential that an economic development plan build off and capitalize on the unique elements and strengths of a region in a way that will lead to economic growth and critical mass of business and investment activity in the future.

Proximity to Canada's Major Metropolitan Areas: The UCPR are located in close proximity to two of Canada's major metropolitan cities, Ottawa-Gatineau and Montreal. This proximity means that the UCPR have easy access to a network of almost 5 million people, and a wealth of business services which is beneficial in enabling further economic growth.

Availability of Commercial Buildings and Land: Prescott-Russell has a significant amount of commercial buildings and land available. This presents a major strength for the area, especially given diminishing land opportunities in several adjacent urban areas such as Ottawa. However, this strength may be somewhat undermined when considering the amount of existing employment lands that are currently serviced.

Quality of Life: The quality of life in Prescott-Russell is considered very strong, especially by current residents. The excellent schools, availability of recreation, strong health care, and natural beauty of the area are just a few of the contributors to that high quality of life. Local residents also considered the quality and range of housing options in the Counties an asset in attracting newcomers.

Agriculture: The Counties are home to a wide range of agricultural activities, as well as industries that support the agricultural sector. The concentration of employment in the sector is well above the concentration of agricultural employment at the provincial level, and Prescott- Russell exhibits agricultural strengths in a range of sub-sectors such as dairy farming, beef cattle, equine, soybeans, and grains. The Larose Forest is also a major asset to the area, covering approximately 11,000 hectares (26,000 acres) making it the largest forested block in this part of the province. It is home to a remarkable diversity of flora and fauna and is of interest to both locals and visitors.

Language: The proportion of Prescott-Russell that has French as a mother tongue well exceeds the proportion of population that identifies as such at the provincial level. As well, the proportion of residents that speak both English and French exceeds the proportion at the

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provincial level. This has implications on the types of businesses that can be attracted, and the types of markets, both international and domestic, that can be targeted. Indeed these advantages are largely unmatched in other areas of Ontario.

2.2 Weaknesses While the previous section outlined the strengths on which to base economic growth, this does not necessarily ensure that a community is ready or able to capitalize on these opportunities. The following sets out some of the weaknesses or competitive disadvantages that may be constraining Prescott-Russell.

Availability of Appropriately Skilled Labour/Skills Training & Upgrading Opportunities: Prescott-Russell does not have a strong supply of some types of skilled labour and trades, such as machinists, electricians, plumbers etc. Moreover, access to training and upgrading of skills is largely unavailable in Prescott-Russell, and those seeking training must travel outside of the Counties making it more expensive and inconvenient.

Municipal Regulations: Regulations (both municipal and provincial) throughout Prescott- Russell were perceived as discouraging to new/existing businesses and inconsistent. There is a perceived need to develop greater coordination of regulations across Prescott-Russell as well as a more streamlined approach to the development process.

Business Connectivity: Availability of telecommunications represents somewhat of a weakness in Prescott-Russell. While business located directly within the municipalities experience good telecommunications service it seems that those in many of the more rural areas do not have as reliable access to high-speed internet. This can be a major barrier to business growth in rural areas and negatively affects the region as a whole.

Physical Infrastructure: Currently there is little public transit service operating within Prescott- Russell. In a largely auto-dependant area, residents must find alternative modes of travel which are often comparatively more costly, i.e. taxi cab rides. A lack of water/sewer infrastructure in strategic areas makes much of the available employment lands in rural areas slightly less preferable. Employment lands not having access to municipal servicing, despite services being in close proximity, are a major infrastructure challenge for future development, especially in the Township of Russell. Further, the lack of three phase power was identified as a shortcoming in Prescott-Russell.

Lack of Coordinated/Cohesive Approach: The United Counties are comprised of a number of communities, potentially making it difficult to undertake long-term planning and development within a regional context, given the diverse set of needs across Prescott-Russell. Stakeholder interviews determined that local attitude in seeing the 'big picture' is lacking. This lack of identity has also caused some confusion amongst visitors to the region.

Low General Educational Attainment: Although Prescott-Russell exceeds the provincial averages in terms of population with trades certifications and college or non-university certificates/diplomas, it also exceeds the provincial average of those who have not finished high school. In addition, Prescott-Russell lags well behind the province for working age residents with

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a university certificate, diploma, or degree. Given an increasing trend towards more knowledge- intensive industries, increased emphasis is being placed on the need for higher education in all types of industry. It will be imperative that the educational levels and training opportunities be addressed at a regional level in pursuing the knowledge-based economy, but also new opportunities in the more “traditional” economy.

2.3 Opportunities External factors can also play a significant role in determining the possibilities for an economic development plan. This can include structural changes in the broader economy, shifts in demographics and technological changes, etc. The following summarises some of the major factors that were identified as influencing the outcome of the economic development plan.

Tourism: Lack of accommodations was identified as a weakness in Prescott-Russell, but also represents a significant opportunity. There are a wider range of tourism activities taking place year round in the Counties which require accommodations; opportunity exists to leverage visitation to the area and to continually expand upon existing assets, such as the new Calypso Waterpark and existing bicycle/walking paths. Spin-off/complementary business could contribute to the growing tourism industry. Given the existing and emerging tourism industry, the accommodations gap represents a major opportunity for new investment.

Agribusiness: Prescott-Russell is home to a wide range of farming activity. The majority are in dairy, cattle and milk production as well as hay farming and beef cattle ranching and farming (including feedlots). This wide range may signify market opportunities to expand and promote future growth in this sector, in the areas of overlap with other sectors, such as transportation, manufacturing, tourism, recreation, and culture. Agritourism represents one of the more prominent opportunities.

Greater Emphasis on Enhancing Quality of Place: Prescott-Russell has an opportunity to focus on quality of place, by ensuring that the region continues to offer and promote high quality cultural, heritage, recreational, and leisure facilities, supported by a range of events, festivals and outdoor pursuits. This focus on quality of place and experience will ensure that the community continues to attract the young families and professionals that will be needed in the knowledge based economy, but also visitors from around the globe.

Manufacturing: The manufacturing sector in Prescott-Russell shows strong concentrations in subsectors that are well positioned to integrate advanced manufacturing innovations in their processes. Further, there is opportunity for the manufacturing sector to be linked to other sectors such as agriculture, to produce new value-added products, and undertake new processes that are more competitive on the global scale.

Creative Rural Economy: There are many resources and assets existing in Prescott-Russell which may hold significant value in pursuing the creative economy. Growth in creative employment in the Counties between 2001 and 2006 has suggested that there may be opportunity to develop higher-order services, tourism and economic activity, while growth in emerging cultural industries and concentrations in professional services industries offer a base

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on which to build. As discussed above, a strengthening of the educational and training options in the Counties presents a significant opportunity to build the creative industries.

Bio-Products Sector and Green Energy: The focus of bio-products activity in Prescott-Russell should be on the transportation sector, encouraging producers to provide raw materials suitable for use in the development of bio-products or bio-fuels, or supporting the production of intermediate materials such as polyols or resins. As an agricultural and manufacturing centre, Prescott-Russell is in a good position to offer potential feedstocks to alternative energy projects, as well as manufactured products fabricated from those feedstocks.

2.4 Threats The obvious measure of success for any economic development plan will be how well a jurisdiction capitalizes on its opportunities in order to drive economic prosperity. Equally important however, is how they address or manage the internal and external threats that may keep it from achieving their vision of a progressive and healthy community. The following discussion lays out the key threats facing the UCPR in effectively implementing an economic development plan.

Resistance to Change: A common frustration in the community is business or property owners‟ perceived resistance to change for the benefit of the whole community. Business owners may not be seeing “the big picture” for the Counties or a strong coordinated vision being led by the counties, and this mindset could threaten further development and investment opportunity.

Competition for Tourism and Retail Dollars: Situated approximately half-way between Ottawa and Montreal, Prescott-Russell is subject to strong competition for tourists. Developing an understanding of how Prescott-Russell can appeal to a larger share of this tourist market will be essential for economic growth. Not leveraging present opportunities and strengths as drivers, such as the Calypso Waterpark, could be detrimental to the future success of the County's tourism industry. Action must be taken to continue to progress the tourism assets/opportunities. Further, proximity to Montreal and Ottawa is creating a perceived high level of retail leakage.

Changing Tourism Market Conditions: External market conditions such as a volatile exchange rate, changing traveller needs, and world events (such as extreme weather, epidemics, etc.) can significantly affect the success of the tourism industry in Prescott-Russell. In the recovering Canadian economy, within the context of a growing number of similar destinations available to visit, it will be important that future tourism marketing stress the value in tourists spending their vacation time in Prescott-Russell as opposed to somewhere else.

Changing Dynamics and Demographics in Agriculture: The agriculture sector is heavily influenced by changes in commodity markets. This, coupled with volatile exchange rates, has meant that farms have had to become more productive and lean while trying to diversify their business (such as adding farm tours, etc.). In addition, consolidation of smaller farms into larger farms is continuing to grow based on increasing farm size, and decreasing numbers of farm operators as noted in the census of agriculture. The demographics of farming are also changing, with the average age of farm operators increasing. Children/teens of farming families

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are increasingly deciding to pursue other career avenues rather than run the family farm, so succession planning remains a challenge for the industry.

Provincial Decline in Manufacturing: Canada‟s manufacturing sector has experienced significant restructuring over the previous decade and a good portion of the lost job may never be recovered in Canada. While still a significant component of the provincial economy, manufacturing employment will likely no longer reach the levels it used to occupy in Canada or Ontario. In the future, manufacturers will need to be innovative and integrate advanced technology-based processes in their operations.

Commuter Patterns: The geographic location of Prescott-Russell is a significant contributor to its outflow of labour, which amounts to almost 43% of the overall working population. Ottawa is the primary external destination for workers in each of Prescott-Russell‟s census subdivisions except East Hawkesbury. The creation of new jobs in Prescott-Russell will allow these people to work at home, therefore increasing their contribution to the Counties' economy. However, the continued loss of workers represents a threat over the short-term.

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3. Value Proposition and Strategic Focus From the economic base analysis and sector targeting discussion included in the background report, it is clear that agriculture continues to play a significant role in the local economy. The location quotient for employment in farms, using the actual number of jobs in Prescott-Russell, is 4.25 meaning the area has a significantly higher proportion of farm workers as a percentage of all workers than is found at the provincial level1. While agriculture may not be the largest generator of jobs, the very high LQ indicates its role as an export industry building the local economy by selling the agricultural goods to other places, and highlights the need for agriculture to play a major role in the economic development strategic plan.

Other industries such as manufacturing (representing an LQ of 0.96, but approximately 3,375 jobs in 2006) and transportation and warehousing (LQ 1.15 and 780 jobs) are also important generators of jobs and wealth for the community in addition to recreation and tourism. However, in Ontario there are several other communities with strengths in similar industries, such as agriculture. There are also several communities with strength in manufacturing; indeed, some are actually stronger in manufacturing than Prescott-Russell. So what makes Prescott-Russell unique? The answer lies in asking how many other communities have strengths in both agriculture and manufacturing, or at the convergent areas between these target sectors.

The very notion of pursuing investment in “target sectors” of the economy is based upon the economic development concept of “cluster development,” the idea that industry groups together in nodes of concentration. These nodes arise where resources are thickest – where concentrations of talent, of infrastructure and amenities, of financial capital, etc. are present and available to participants within the cluster. As an example, as farming gained strength, farming related resources developed this thickness, which in turn led to more agricultural activities.

Economic development practitioners have long embraced the concept of cluster development as a key component of their strategic activities. Introduced by Harvard University‟s Michael Porter in 1990, cluster theory describes the interactions of concentrations of interconnected businesses, suppliers and associated institutions within particular sectors of business and industry. Clusters may be defined in four ways:

 Geographically (i.e. interactions within a specific region)

 Horizontally (i.e. interactions between businesses to share resources)

 Vertically (i.e. interactions based on supply chain management)

 Sectorally (i.e. interactions between businesses in a given business field)

Initially, the term “cluster” was applied only to large and significantly resourced industry concentrations, particularly the world leaders in given fields (such as Silicon Valley for ICT or

1 For a definition of Location Quotients, please see the Background Research and Appendices Report

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Zurich for pharmaceuticals). More recently, economic development practitioners have taken to employing the phrase in a less grand sense and more as a “short hand” for explaining the potential to grow local economies by building on areas of concentration and interconnectedness within their own communities. In most cases, the clusters identified are geographic and sectoral in nature.

Most communities will have several business sectors where this “thickness” is particularly evident in a concentration of business activities and opportunities. These are often referred to as areas of local competitive advantage and form the basis of strategic targeting exercises in economic development activity. However, the challenge lies in a community‟s ability to differentiate itself from other communities with a similarly identified business sector.

The solution to this challenge lies in understanding the interactions between a community‟s sector based clusters. Many communities have a strong agricultural sector. Many have a strong manufacturing sector. However, far fewer have strength in both. From this perspective, each time an additional cluster is identified, the community‟s value proposition to a certain segment of potential investors in strengthened.

This approach to the value proposition allows communities to identify those specific areas of strength that are complimentary to each other, and thus identify the point or points at which the community has a regional, national or global competitive advantage. Millier Dickinson Blais commonly identifies these areas as “Sweet Spots”; or areas where a particular community may be able to out-compete other communities based on the unique composition and strengths of their economy. These advantages may then form a key part of the larger value proposition and messaging that may be used to lure or attract external investment to the community, or to anchor increased internal investment. Further, they allow for a community to target its service delivery at areas where the greatest benefit may be gained.

At a practical level, this approach suggests that Prescott-Russell‟s area of greatest competitive advantage (or Sweet Spot) lies in activities that incorporate more than one element of activity from different cluster strengths. For example, unique competitive advantages begin to emerge at the point of overlap between agriculture and manufacturing. Few communities are able to lay claim to this area of convergence. Therefore, Prescott-Russell should be able to significantly out-compete many other communities for investments that rely on or are linked to both of these sectors.

Following this concept of convergence, it is possible to begin to map out a model of how mulitiple sectors relate to and support other target sectors. These relationships and areas of convergence generate optimal value propositions for Prescott-Russell on the basis of a particular configuration of cluster activity in the community.

Convergence sector development will also be based on one of Prescott-Russell‟s strategic assets: proximity to two of Canada‟s largest urban areas. Prescott-Russell is located less than an hour from both Montreal and Ottawa, which together have more than 5 million people. This includes people who will be drawn to the kind of rural lifestyle Prescott-Russell provides. Potentially, people who will seek out locally grown produce and hand crafted goods and the

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opportunity to experience local agricultural, cultural and recreational opportunities. Also, by way of that proximity to Ottawa and Montreal, local innovations in more technical and industrial fields have access well beyond the borders of Prescott-Russell through the global connections in those cities, such as large multinational corporations and headquarter operations.

The following sections outline Prescott-Russell‟s potential strategic focus. The next section comments on the significance of agriculture in the regional economy, and the potential for agricultural activities to underpin many of the areas of opportunity in this strategy. Following that are two sections that outline the sweet spots for Prescott-Russell, or the areas where the unique strengths and opportunities in a number of sectors converge to produce a competitive edge for the United Counties. Concluding the chapter is a discussion about the supporting businesses and organizations that could encourage the development of the target sectors and sweet spots for Prescott-Russell. Collectively, this chapter outlines many of Prescott-Russell‟s best opportunities for economic development in the traditional and knowledge-based economies.

3.1 Areas of Convergence: Agriculture at the centre Agriculture has a prominent role in the economy of Prescott-Russell. Employment concentration in the sector in the United Counties greatly exceeds the concentration of agricultural employment across the province, and the sector accounts for almost 10% of the jobs in the United Counties. The prominence of the sector suggests that any economic development initiatives undertaken in the United Counties must pay some regard to the importance of the industry, especially considering that it faces a number of issues shared by other more traditional economic sectors, such as cost competitiveness, slowing productivity, and environmental pressures. Though agriculture has a prominent role in the economy, and the potential to intersect with a number of other economic sectors, the creative rural economy concept has a part to play in this convergence as well.

One area of convergence is driven by creativity and innovation in traditional sectors of the economy that intersect with agriculture, including manufacturing and transportation, warehousing and logistics. In this sweet spot, referred to as the “Strategic Economic Targeting” sweet spot in this report, innovative people and firms contribute to new products and processes within resource-based and traditional activities included in the agriculture, manufacturing, and transportation sectors.

Creativity also drives the convergence of agriculture, tourism, and recreation and culture, referred to as the “Creative Placemaking” sweet spot in this report. In this sweet spot, unique and distinct attractions at the convergence of the sectors add to the quality of place that attracts residents and tourists to an area, while highly creative and innovative people and firms are finding niche areas of opportunity at the convergence and creating place-building amenities.

In each of the cluster convergence or sweet spot discussions presented here agriculture is a key element. It is possible to merge or overlap the convergence diagrams to move towards a clearer picture of the economic value proposition for Prescott-Russell.

The model presented in the figure on the next page suggests that each circle represents an area of local strength. Where two circles overlap, the community has an area of competitive

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advantage at a regional or national level. Whenever an additional sector is added, the local strength in that discrete area of activity is enhanced and an industrial sweet spot is created.

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Figure 1: Prescott-Russell‟s Converging industries - Agriculture at the centre

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Each of the area‟s “sweet spots” is related to agriculture, suggesting its prominence in the local economy. However, there is another link across these industries in this model: talented people. What is apparent from the creative occupational categories studied in this report‟s background analysis is the ability of creative workers to cut across industry sector lines in a way that can impact both traditional and emerging industries, and the degree to which these occupations translate to a well paid and highly skilled workforce. This is particularly true if one considers that the skills needed for creative occupations are more heavily weighted towards analytical2 and social intelligence3 skills, both of which play a significant role in a knowledge-driven economy.

In this model, traditional sectors such as manufacturing or transportation and warehousing will no longer rely on a labour force of routine physical occupations, while the agricultural industry will no longer be solely filled with routine resource occupations. All industries, as they strive to innovate and compete on the basis of knowledge, will have increasing proportions of their workforce in creative occupations like management, business and finance, natural and applied sciences, arts, culture, recreation and sport, education and health. These occupations cross industry sector lines and will play a role in developing both areas of convergence for Prescott- Russell.

Literature on the creative economy suggests these workers put value on quality of life; they will trade higher wages for better amenities. In this case the greater opportunities for interaction with the community; strong cultural and recreational amenities; picturesque landscapes and natural beauty; and a unique rich history and culture are all quality of place aspects sought by these creative workers. In this way, the second convergence cluster centred on agriculture, tourism, and culture and recreation works towards creating the quality of place features desired by creative and professional workers. Therefore, developing this convergence clusters has the added benefit of strengthening the entire value proposition through the development of quality of place amenities.

3.2 Strategic Economic Targeting The first of these “sweet spots” in Prescott-Russell is rooted in the more traditional economy, or more traditional sectors of economic output, employment generation, and export development. In many ways, this sweet spot is anchored in the existing strengths of Prescott-Russell. The area has a well-established base of agriculture, primarily focused on dairy farming and milk production, but also hay farming and a number of other cash crop operations. In terms of manufacturing, Prescott-Russell exhibits concentrations of activity in metal, plastics, and wood products manufacturing, with growth potential in a number of other sectors like food products and chemicals. The strength of this manufacturing profile is its diversity, as well as the potential for many of those industry sectors to adopt more advanced manufacturing technologies. Further, current employment in both freight trucking and support activities for transportation paired with the potential opportunities revolving around the geographic location of the Counties

2 Examples of occupations that require the highest level of analytical thinking skills include surgeons, biomedical engineers, dentists, accountants, plumber, art directors etc. 3 Examples of occupations that require the highest level of social intelligence skills include psychiatrists, chief executives, marketing managers, lawyers, sports coach, film directors etc.

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and access to large urban markets makes transportation and logistics a target for the expansion of investment.

Figure 2: Relating agriculture with manufacturing and transportation – Strategic Economic Targeting Sweet Spot

Agriculture: As noted previously, agriculture has a high LQ of 4.25 based on the number of jobs in Prescott- Russell. Based on the 2006 census of agriculture, much of that farming is concentrated in:  dairy cattle and milk production  hay faming  beef cattle ranching and farming  soybean farming  other grain farming4  horse/equine production  livestock combination farming

4 Farms primarily engaged in growing grains such as barley, buckwheat, canary seed, millet, oats, or rye, as well as combination grain/oilseed farms

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 corn farming  chicken egg production

Both dairy farming and milk production and hay farming exhibited a higher proportion of total farms in Prescott-Russell than those two farm types at the provincial level. In the case of Dairy farming, that activity accounted for 29% of farms in Prescott-Russell, while dairy farms accounted for only 9% of farms across Ontario.

Manufacturing: Manufacturing had an average employment-based LQ of 0.96 in 2006, exhibiting a contraction of 6.6% between 2001 and 2006. Despite the loss of the PGW plant in Hawkesbury in 2009, much of the manufacturing employment in the area has remained stable relative to the provincial manufacturing sector. For example, the provincial sector contracted by 9% over the same 2001 to 2006 time period. This is not to undermine the importance or significance of the loss of PGW, but for the most part both number of jobs and number of businesses remained stable.

In 2006, much of the employment in the sector was concentrated in:  iron and steel mills and ferro-alloy manufacturing  glass and glass products manufacturing5  other textile product mills  clothing manufacturing  household and institutional furniture and kitchen cabinet manufacturing  plastic product manufacturing

The 2009 business patterns data and number of business establishments reflect these concentrations as well. Relative to the province, concentration of employment is found in most of the above sectors, but also food processing (dairy, animal foods, fruits and vegetables), building components (veneer, plywood and engineered wood products), and several other sectors where advanced processes are emerging: petroleum and coal products; boiler, tank, and shipping containers; semiconductors and electrical components; industrial machinery; and motor vehicle body/trailer manufacturing. Meat product manufacturing, based on employment growth relative to the province was also noted as a growth subsector.

Transportation, Warehousing, and Logistics: Transportation, warehousing and logistics exhibited an average employment LQ of 0.82 in 2006, growing by 7.6% between 2001 and 2006. The labour force concentration, that is, people who live in Prescott-Russell and work in transportation, warehousing, and logistics, either inside or outside of the Counties, was slightly higher with an LQ of 1.16; this highlights the opportunities for expansion of the local industry, independent of the transportation and market access opportunities noted previously. Of note to goods movement, some of the largest sectors by employment in 2006 were general and specialized freight trucking. By employment

5 Which has since declined with the closure of PGW

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concentration, relative to the province, high concentrations were found in specialized freight trucking, support for road and water transport, and bus transportation subsectors.

Further, the industry sector profile noted that modest growth between 2006 and 2009 has occurred in subsectors like other long distance specialized freight (except used goods) trucking, non-scheduled chartered air transportation, and general freight trucking.

Areas of Convergence: Understanding the details of the strengths in the identified industry sectors allows some immediate conclusions to be drawn about how the sectors overlap in the region.

 The area has considerable employment in food manufacturing including bakeries and tortilla, dairy, meat and animal food product manufacturing. There are also activities related to fruit and vegetable preserving and specialty food manufacturing. These industries are able to draw on raw materials produced in the area.  Other activities relating to agriculture and manufacturing include the manufacturing of basic chemicals and pesticides, fertilizers and other agricultural chemicals as well as the manufacturing of agricultural machinery and equipment.  Manufacturing activities are also related to the transportation and warehousing sector through the manufacture of tire cords, boiler tanks and shipping containers, motor vehicle parts, bodies and trailers as well as paints and adhesives.  The transportation sector has activities related to agriculture through specialized freight services including the transport of milk, livestock and other agricultural products.

The sweet spot of interest contains companies engaged in activities that related to all three industry clusters, such as the manufacturing of agricultural transport equipment and the integrated activities of processing and transporting agricultural products. As shown by literature review on the creative economy, companies that fall into the sweet spot will often be engaged in activities that provide innovative products and services as solutions to problems within the component sectors. An example of such a company might be a design firm engaged in the manufacture of specialized transportation or storage equipment for an agricultural product, such as cellulosic biomass.

The dominant theme in this area of convergence is knowledge-based industries and activities, including to some extent, construction and design. Though not specifically noted as a target industry, the strong construction sector in Prescott-Russell will also aid in the development of this convergence area. Innovative construction, based on sustainability and performance, will underpin much of the efficiency and productivity gains that the convergence sector will produce. Looking back at the creative industries profile for Prescott-Russell, the local concentrations of firms in engineering, design, and computer systems offer encouraging support for the growth of this sector. This area of convergence, as well as a high-level understanding of the opportunities presented, will be profiled in the next section.

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3.2.1 Strategic Economic Targeting Sweet Spot The strategic economic targeting sweet spot will generally include the manufacturing of agricultural and related equipment, as well as the integrated activities of processing and transporting agricultural products. But the convergence sector consists of more than its three component sectors. Underlying the convergence area is expertise in construction and engineering – developing innovative solutions to complex business and industrial problems. Increasingly, work within the convergence sector is focused on sustainability, or improving environmental performance in some of the more energy-intensive sectors of the economy. Primarily within that lens of sustainability, creativity, innovation, and knowledge, the convergence sector is less about the products that are made, than about how they are made.

The project team believes that the following opportunities fall into the area where the agriculture, manufacturing, and transportation, warehousing, and logistics sectors overlap:

 Biofuels and bioproducts

 Alternative and “green” energy

 Food processing and transportation

Given geographic positioning and market access, existing agricultural profile, and regional economic development priorities at a higher level, these three areas of focus within the convergent sector may offer the best potential for Prescott-Russell.

3.2.1.1 Biofuels and Bioproducts The biofuels and bioproducts subsector covers a number of elements within the strategic economic targeting sweet spot. Most biofuels and bioproducts currently link to agriculture through the use of either agricultural crops or residues (co-products) as a feedstock. Natural fibres like straw have long been used in composite materials, but the use of biobased resins and epoxies for the development of biocomposite materials is also rising. Bio-based resins, such as those produced from corn, soy, or milk proteins, are increasingly being used in the production of plastics, and in an automotive context, have performed comparatively or better than their oil- based counterparts. As well, the use of corn and soy as a feedstock for the development of ethanol and biodiesel is well documented. Overall, the biofuels and bioproducts sector is an excellent fit within the convergence of agriculture, manufacturing, and transportation, warehousing, and logistics.

The cornerstone of the biofuels and bioproducts sector is innovation. The need to exchange the oil and other non-renewables for renewable and more sustainable feedstocks has driven a range of scientific experimentation to identify new biological components and processes to make the switch. Many of these first generation biofuels and bioproducts, like the soybean- based polyol noted above, are based primarily on food crops. However, fierce debate has emerged about the appropriateness of diverting valuable food resources to non-food uses. This has driven scientific research and development into the use of non-food crops like wheat and corn stover or switchgrass as a biological basis for both biofuels and bioproducts. Greenfield Ethanol, Canada‟s largest Ethanol Company, currently operates a centre of excellence in

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Technology, and Research and Development focused on the integration of cellulosic materials into ethanol production in Chatham-Kent, Ontario.

This market is driven primarily by the need to replace oil as a feedstock for both fuel and materials like plastic, synthetic fabrics, and composites. In many cases, the new bio-based materials offer numerous other advantages as well, such as a high strength-to-weight ratio in biocomposites and bio-plastics, or lower carbon emissions from the burning of ethanol. Based on these advantages, the substitution of traditional materials with new biomaterials represents a major market opportunity – the global composites industry is presently a $19 Billion (USD) industry, but is forecasted to grow through 2014, primarily as advanced materials enter the aerospace, transportation, and alternative energy sectors more extensively. The global bioplastics industry is forecasted to grow to a $50 Billion (USD) industry by 2015, as material substitution becomes more economical in the face of rising energy costs. As well, the market for biofuels continues to grow with both U.S. and Canadian policies that favour the integration of biofuels into the transportation market.

For rural areas with both manufacturing concentrations and biomass availability, biofuels and bioproducts offer an interesting opportunity to capitalize on both strengths. When adding a target market, primarily the development of transportation equipment and infrastructure, the area can establish an even more discrete area of activity, the quickly expanding bioautomotive market.

Prescott-Russell has several assets that should be noted towards the development of this convergence sector. Campus d‟Alfred, the campus of the Ontario Agricultural College (OAC) in Alfred and Plantagenet is focused on research into dairy and forestry, both of which have potential as bioproduct and biofuels feedstocks. Further, the campus has connections to other campuses of the OAC and other institutions that are engaged in bioproducts and biofuels research. The Ridgetown Campus of the OAC is focused on plant genetics research, and has a farm-scale demonstration bio-refinery to produce biodiesel. Further, as a component of the University of Guelph, the OAC is connected to more detailed areas of plant research and bioproduct development through the Bioproduct Discovery and Development Centre (BDDC) at the University of Guelph. The initiatives here are also connected to the larger Ontario BioAuto Council, which provides commercialization funding for bioproduct innovation in all sectors. As well as providing these connections, the institution provides valuable infrastructure for technology transfer, and could potentially offer training opportunities within the field. As an added benefit, relevant to local and international connections, the campus is bilingual, but primarily French.

Prescott-Russell also has regional support in the sector. The Ontario East Economic Development Commission has designated bioenergy as a target sector. As part of that designation, Ontario East can connect entrepreneurs and businesses to government, research, and commercialization services. Proximity to Ottawa and their economic development organization Ottawa Centre for Research and Innovation (OCRI) also supports the development of the sector, particularly with the Ottawa Cleantech Initiative which is focused not only on the city, but also on the surrounding counties including Prescott-Russell. This initiative connects

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suppliers, companies, communities, post-secondary institutions, and funding bodies in the broad cleantech sector to support commercialization of both bioproducts and biofuels. Access to both regional organizations (OCRI and the OEEDC) allow for a wider reach and regional collaboration for the development of the local cluster.

The existing agricultural profile suggests Prescott-Russell would be well-positioned as a feedstock provider for a number of different bioproducts. Strengths in soy, grains, and corn suggest that the area has sufficient skill to grow many of the crops coveted by both bioproducts and biofuels industries. As well, availability of dairy production suggests that as research capacity at the OAC grows, the area could have potential to develop as a centre for excellence in the uses of dairy proteins, particularly Casein, in bioproduct development. Being a major agricultural area there are also opportunities to use agricultural residue like corn and wheat stover as potential feedstocks, as they should be available in large volumes.

The focus of bioproducts activity in Prescott-Russell should be on the transportation sector, encouraging producers to provide raw materials suitable for use in the development of bioproducts or biofuels, supporting the production of intermediate materials like resins or epoxies, or potentially supporting the licensing of bioproduct or biofuel development technologies by local companies. The area‟s industrial specialties allow for a focus on either feedstock provision or manufacturing within the sector. Some components require similar equipment, facilities, and human resources as traditional manufacturing industries. Development of more specialized skills may be needed though, especially to cultivate small business opportunities in niche areas of the sector, such as biocomposites. Regional collaboration should be promoted in that regard, connecting Prescott-Russell with business and training opportunities external to the region.

3.2.1.2 Alternative and “Green” Energy Elements of the alternative or green energy sector fit well within the convergence sector between manufacturing, agriculture, and transportation, warehousing, and logistics. The area seems well poised for development of the sector as similar to the bioproducts and biofuels sector; strengths in agriculture translate to a potential niche within alternative and green energy. For example, manure from cattle operations can be processed through an anaerobic digester to produce methane gas, which in turn can be used to produce electricity and heat. Other agricultural materials, such as corn stover, can also be a feedstock for gasification.

Prescott-Russell was in fact one of the first communities in Ontario where a local farmer built an anaerobic digester and generator capable of selling electricity back to the power grid. George Heinzle and his wife Linda of Terryland Farms in St. Eugene originally started generating power for Ontario‟s grid in 2007, with a 1,000 cubic metre anaerobic digester that was capable of producing 180 kW. They have since doubled that capacity, as well as added an oil pressing system that extracts value-added oil from crushed soybeans for use as a diesel additive, and pelletized soybean meal for cattle feed. For their initial efforts, the Heinzles were awarded the Premier‟s award for Agri-Food Innovation Excellence in 2007, but have since been recognized with other accolades such as the 2010 Producer of the Year award at the Canadian International Farm Show. While this example illustrates the convergence of agriculture with transportation and energy production, these early-adopters in Ontario also illustrate some of the

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difficulties that have been encountered to implement on-farm projects, such as lengthy approval processes and complicated issues with connections to the grid and energy sales.

Aimed at resolving some of those problems, the Green Energy Act is providing the primary incentive for the development of green and alternative energy projects in Ontario. The strength of the Act is the Feed-In Tariff (FIT) programs that guarantee a set rate for electricity to be purchased at. This encourages both large-scale and small-scale community projects by minimizing the risk to independent electricity producers. In addition to the FIT programs, the legislation requires that for every project in Ontario, a significant portion of the activities like construction, manufacturing, and labour must be undertaken in Ontario. Inherently though, the alternative energy sector works on a more regional supply chain anyways, sourcing products close to the project to maintain a low carbon footprint.

As an agricultural and manufacturing centre, Prescott-Russell is in a good position to offer potential feedstocks to alternative energy projects, as well as manufactured products, generally considered sectors that would engage directly in green energy projects. Among other things, strengths in electrical component manufacturing, and transportation equipment manufacturing present opportunities within the convergence sector. Prescott-Russell is also strong in a particularly valuable green energy enabling sector: transportation, warehousing and logistics. An efficient and dependable transportation, warehousing, and logistics sector can provide timely access to feedstocks, as well as support the transport of green or alternative energy products that require specialized transport. For example, Prescott-Russell‟s positioning close to Montreal, provides companies with quick access to bulk materials shipped through the Port of Montreal, as well as an opportunity to ship large items by water. Finally, Prescott-Russell‟s agricultural residues offer significant opportunities. It is estimated that the manure from seven cows could produce enough methane gas to power a single household. The 2006 Census of Agriculture counted 55,000 cows in Prescott-Russell, which could potentially power over 7,800 homes. In addition, the numerous cash crop operations produce residues that can be used for biogas operations, where they may otherwise be left on the fields. Geographic positioning between two centres of technological innovation also provides an opportunity to develop the sector. Regional businesses and independent energy producers have access to the technological know-how in both major centres, but also access to major markets that are looking to source an agricultural feedstock for alternative energy production. The former point will be critical towards expanding local knowledge and resources.

3.2.1.3 Food Processing and Transportation As noted previously, activities at the convergence of agriculture, manufacturing, and transportation also provide opportunities for integrated businesses concerned with the processing and transport of agricultural products. A prime example of a business activity at this point of convergence is the manufacturing of specialized transportation equipment to handle agricultural products, such as refrigerated trailers or liquid tanker trailers. A more general example may be a company that has vertically integrated their operations across food processing, and transportation and warehousing. This opportunity – integrated manufacturing and warehousing or storage – actually assists in addressing some concerns that may come from the attraction of distribution companies. Typically, transportation, warehousing, and

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logistics firms have relatively low employment densities owing to their large facilities and low employment numbers. Many jobs within the sector are often considered lower-skill or lower wage jobs as well. However, by attracting integrated facilities that combine both manufacturing and warehousing operations, employment densities rise, and a greater diversity of job opportunities are provided, such as in skilled industrial trades.

Based on employment and industry specializations in the area, the greatest opportunities appear to surround meat and dairy production, and bakeries. Indeed, Prescott-Russell has already had success in each of these areas, being home to St. Albert Cheese Co-operative, Aunt Lizzie‟s/Aunt Ettie‟s Cookies, and the number of meat packing and distribution businesses in the Counties – Russell Slaughterhouse, Savage Abattoir, L‟Orignal Packing, and Abattoir Brisson Slaughterhouse. Through consultations, it was estimated that in Prescott-Russell alone, there would be over 280 head of cattle (30 months and less) available for slaughter each week therefore 14,560 annually.

Again, the presence of the OAC campus enhances the opportunities associated with food processing in Prescott-Russell, primarily around dairy and milk production and maple syrup, though the College has connections to a national and global pipeline of research in a number of agricultural areas and food industries. Being part of the University of Guelph further enhances those connections to cutting edge food processing technologies.

The opportunity for Prescott-Russell lies in the manufacture of equipment to service the sector, but also in developing integrated transportation, warehousing and food processing facilities based in the agricultural strengths of the area. Both target areas present opportunities to apply innovative construction and manufacturing processes, as well as sustainable industrial practices.

3.3 Creative Placemaking If the first economic development sweet spot in Prescott-Russell is focused on traditional industries, the other is rooted in an understanding of where growth in emerging and non- traditional industrial sectors is underpinning new economic opportunities for the counties. This is especially relevant given the increasing discussion surrounding the creative economy, and the importance of recreation, culture, and arts in attracting new residents and visitors.

The economic base analysis in the background report noted growth in businesses related to arts, culture and recreation. At the same time, local economic development staff and community consultation efforts have reinforced the importance of the local tourism sector to the development of Prescott-Russell. In fact, many stakeholders feel that the tourism sector holds some of the most significant economic opportunity for the Counties, especially given recent investments within the sector, such as the Calypso Waterpark. Agricultural strengths noted in the previous area of convergence also offer opportunities to develop in these new areas of the economy.

The key thematic element of this convergence area, or sweet spot, is “creative placemaking”. Generally speaking, this involves building and marketing a physical and economic environment that offers a well-defined and unmatched quality of life that can appeal to a wide range of

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residents and visitors. All of the component industries noted above have an integral part to play in that development. Each one can add a key element to the defining identity of an area and can shape the types of experiences that both residents and visitors have in that area. This takes on greater importance within the context of the attraction of new skilled workers to the community. Research suggests that most skilled workers, and for that matter an increasingly large portion of tourists, are seeking out places with the highest-quality mix of amenities: places that have a vibrant landscape of cultural and artistic attractions in addition to the more traditional elements of quality of life like health care, schools, and unique natural heritage.

Figure 3: Relating Agriculture with Culture, Recreation and Tourism – Creative Placemaking Sweet Spot

Agriculture: The previous section dealt with agriculture as a traditional industrial driver for economic development. In much the same way, agriculture can also underlie tourism and recreation uses in an economy as well. The strengths in dairy and crops turn into differentiation of product or experience, or the driver for some areas of the creative rural economy – craft brewers, wineries, or cheese-making for example. Overall, the strengths in agriculture add certain legitimacy to the rural experience, for visitors and residents alike.

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Tourism Though a number of industries are tourism-related (i.e. they have an influence on tourism), the core tourism industries are often characterized under NAICS industry code 72 (Accommodation and Food Services). Retail, some types of transportation, and many personal services could potentially be added to the tourism “cluster”, but the industries within the accommodations and food services sector are primary enablers for tourism development.

In 2006, the accommodation and food service sector exhibited an average employment LQ relative to the province, with a decline of 8.8% employment between 2001 and 2006. The largest decline in the sector was in traveller accommodation, which includes hotels, motor hotels, resorts, motels, casino hotels, and bed and breakfasts. Employment in that subsector declined 26% between the two census years. The December 2009 business patterns data seems to confirm the perception of an under-developed accommodation sector in Prescott- Russell, noting just five business establishments in traveller accommodations. RV parks and recreation camps exhibited a high concentration of employment relative to the province in 2006.

Food services employment noted a similar decline over the same time period, with full service restaurants, limited service restaurants, and special food services employment declining 13.4%, 10.2%, and 15.8% respectively. Only the drinking places subsector increased in employment between the census years, gaining 28.6% employment and reaching an employment LQ of 1.59. Business patterns data noted 104 food services establishments in Prescott-Russell in December 2009. The accommodation sector, though only a modest increase, gained establishments from December 2006 to December 2009.

Recreation and Culture: As noted previously, there are a number of business sectors that are related to the tourism industry. One of these is the recreation and culture sector, which includes the attractions of an area; the museums, theme parks, and events that define an area. Though they are a major segment of the tourism industry, they must be broken down differently as they are equally important to both visitors and residents of an area.

The recreation and culture sector, commonly defined as NAICS sector 71 (Arts, Entertainment, and Recreation) exhibited an employment LQ of 0.64 in 2006, after declining by 4.55% from 2001 to 2006. However, since that time the sector has grown by 12.5%, primarily based on increases in golf courses and fitness/recreation centres. The opening of the area‟s most prominent recent attraction, Calypso Park, is too recent to register in these statistics.

It should be noted, however, that defining this sector is difficult. Many of the sector assets in Prescott-Russell are less easily identifiable through traditional research methods. Cycling, fishing, hiking, boating, birding, and all other outdoor activities, for example, do not fall under the NAICS system. Though the area has a number of advantages, most will remain hidden employing statistical analysis alone, highlighting the need for extensive public consultation and non-traditional research methods in this field.

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Areas of Convergence: Returning to the previous figure and discussion on the creative rural economy allows some understanding how these three sectors overlap in the region:

 Agriculture, culture and recreation exhibit several areas of overlap in farm-based recreational activities, from horse-back riding to you-pick berry farms. In the case of Prescott-Russell, agricultural areas are also areas containing important forest reserves and wetlands, creating the opportunity for interpretative tours and programming related to agriculture‟s role in environmental sustainability. Unused farm buildings can also be converted to artist guest houses. Value added farm goods become artisanal and handcrafted goods such as beeswax candles and sheep‟s wool sweaters.

 Agriculture and tourism also have areas of overlap through farmers‟ markets and farm- gate sales but also through other activities such as working or volunteering on organic farms (http://www.wwoof.ca/) and culinary tourism, as visitors tour wineries, fromageries and boulangeries.

 The area has several locations and activities where tourism overlaps with recreation and culture including the Prescott-Russell recreational trail, the Alfred Bog, the Larose Forest, Higginson Tower, Hawkesbury Mills and MacDonell House.

The sweet spot contains companies and organizations engaged in activities that related to all three industry clusters. On closer inspection of the target industries, though, recreation and tourism appear to be inherently linked. Recreation and culture contain the types of amenities that, when paired with accommodation and food services, combine to anchor a tourism industry in an area. An example of a business at the convergence of all three sectors could include a full- service resort focused on serving locally-produced foods. But the convergence sector could also include festivals and events, perhaps sponsored by accommodation or tourism operators in the area. For example, the Foire Gourmande, which attracted 6,000 visitors in its first year, and the Festival de la Curd sponsored by the St. Albert Cheese Co-operative represent events that take advantage of the opportunity to showcase local food based on local industry strength to attract visitors to the area, while offering accommodation on site as well.

This convergence cluster has the added benefit of strengthening the entire economic value proposition for Prescott-Russell through the development of quality of place as it relates to both the attraction of knowledge-based workers who value a high quality of life, and tourists seeking a unique experience. A number of opportunities associated with this sweet spot will be profiled in the next section.

3.3.1 Creative Placemaking Sweet Spot In the United Counties of Prescott-Russell there appears to be a strong overlap in the regional strengths within the tourism, agriculture, and recreation sectors. This area is home to a varied agricultural sector which plays a role in both the tourism and the recreation industry. The sweet spot between these industries represents a niche market opportunity in which Prescott-Russell may have a unique opportunity to capitalize on as a future economic driver.

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Bringing together these three industries is not a new concept, but one that is increasingly becoming a way of differentiating rural communities. Many communities have agriculture. Many have recreational opportunities. Some even have tourism. But what differentiates Prescott- Russell is the unique convergent area resulting from the combination of these strengths in a single location. Current research has shown that the agritourism and recreation sector is growing and from a tourism industry viewpoint, agritourism and recreation can be a way to:

 Diversify the mix of tourism products and services available to visitors

 Increase tourism flows into attractive rural regions

 Increase season length during traditionally off-peak markets

 Bring more non-local currency to local business

 Offer increased opportunities to be active (recreation-based).

At a practical level, this approach suggests that Prescott-Russell's area of greatest competitive advantage lies in activities that incorporate elements of activity from each of the three supporting sectors. A connection can be seen between these three sectors when looking at culinary tourism, festivals, tours and events, and educational opportunities.

3.3.1.1 Culinary Tourism Culinary tourism is defined by the International Culinary Tourism Association (ICTA) as the pursuit of unique and memorable culinary experiences of all kinds, often while traveling, though one can also be a culinary tourist at home. The agricultural component can contribute both the venue and unique, locally grown products such as cheeses, wines, or milk. A shift in eating trends has placed healthy eating high in the minds of travellers and residents. Knowing how and where foods are grown/prepared presents an interesting opportunity for the agriculture and tourism sectors.

This trend has recently become very popular in Jamaica, for example, where a local Farmers' Cooperative has been developed and local farmers have adopted strict organic farming practices in order to be suppliers for the island's top hotels, including Sandals and SuperClubs. Continuous training courses are offered by the Ministry of Agriculture and its Rural Agricultural Development Authority, which assist local farmers in building relationships, working with local hotels, and understanding the do's and don'ts of top quality farming. In Prescott-Russell, there are a number of well-known agricultural and culinary products. Working with regional hotels, restaurants, and supermarkets (including those in Ottawa and Montreal) to build relationships will provide further opportunity for local farmers to market their products.

An educational component is also an element of this approach, as tourists and residents are able to understand the processes that take place when a product goes from farm gate to plate. The tourism component could be represented by people travelling to visit and experience the farm. Many farms today are introducing a bed and breakfast concept to their offerings, allowing tourists to be a part of a truly authentic farm experience. Culinary tourists could partake in

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activities such as concerts or cooking demonstrations before sitting down to enjoy the culinary talents specific to the local agricultural market. The development of a culinary cookbook, tailored specifically to the products and culinary talents of Prescott-Russell, could assist in strengthening the local culinary tourism product. All recipes could (where possible) list ingredients that may be purchased locally.

While the opportunities are endless, the agricultural component could also be less pronounced in the convergence sector. For example, tourists visiting the new nearby Calypso Waterpark might decide to visit a restaurant after their adventure-filled day and could choose to drink wine, or eat a certain dish that was produced by a local farm. Producers in the region should ensure that they are building partnerships with the local restaurants and tourist attractions and that the structure exists to move products from farm to plate.

3.3.1.2 Festivals, Tours and Events Another example that could demonstrate the area of convergence is the development of specific local festivals and events. Prescott-Russell is home to a number of very popular events/festivals, such as the Great Ramble cycling/walking tour, the Festival of Flavours, the Foire Gourmande, and in 2011 the International Ploughing Match & Rural Expo. These types of events include the recreation sector in that they encourage people to get out and get active. These events will attract people from well outside the region, as well as local residents. Agricultural connections can be enhanced by local farms setting up booths to showcase their product, or offering an agricultural experience, such as a demonstration on how to milk a dairy cow or how to crush grapes for winemaking. Contests (such as a grape stomping challenge) would create a fun atmosphere for tourists, locals and local producers. In British Columbia, the Okanagan-Similkameen region is well known for its 'Tours of Abundance', which include:

 "A Rich Heritage" (stops of historical interest)  "A Fruitful Harvest" (fruit and orchards)  "An Overflowing Bounty" (winery and vineyards)  "A Land of Plenty" (farms and ranches)  "Delicious Enterprises" (tasty agri-food products)  "Abounding Activity" (skiing, golfing, cycling, river tours)

Building on the experience of British Columbia, a farmer‟s market tour, in partnership with local artists and culinary talents, could be organized in Prescott-Russell as a forum for showcasing new wineries and locally produced cheese and meat products that may not receive the attention they deserve. Tourists are looking for opportunities that offer a rich experience, such as purchasing or sampling products that are locally produced. These goods will become a sought- after product that tourists equate with the region. This could be combined as part of a tourist route, where locals as well as tourists could visit specific sites that offer products or activities exclusive to the region, such as demonstrations of how the beer, wine, or cheese is made, while the end of the tour could include a stop at a local market to taste the products. A recreation component could be included in creating a route that is walkable, one that can be completed by cyclists, or one that could be completed by motorized vehicle.

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 Figure 4: Multiplier Effect for Agritourism & Recreation

 Source: Slideshare.com. (2009). The Italian model for agritourism.  Continuing to develop this industry will mean that collectively Prescott-Russell will need to prioritize the agritourism and recreation market and work towards generating increased collaboration and interest throughout the region. Conferences and workshops could be organized periodically to address the issues that the region faces in developing agritourism, business management, partnership development, leadership development, management strategies, and emerging legislation interpretations. The development and delivery of quality assurance programs for approved agritourism and recreation products and services could help to ensure that brand recognition takes place and that the products become known and attributable to Prescott-Russell.

3.3.1.3 Ecotourism and Educational Opportunities Ecotourism is also considered a growing tourism sector. It is defined by responsible travel to unique or interesting natural environments while striving to leave a small ecological footprint

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from that visit. The primary aim of ecotourism is to educate the traveller, but in some instances it can provide funds for ecological conservation and potentially even empower local communities.

A well-managed forest, such as the Larose Forest, can have a number of impacts on a community and can create increased educational opportunities for youth, farmers, locals and tourists. As noted in the United Counties of Prescott-Russell Protection and Development Plan6, the Larose Forest is currently underutilized in terms of its educational and research potential. Developing programming that would attract eco-friendly tourists while positively impacting the surrounding community could enhance the success of the Larose Forest. The peer review process suggested that a Larose Forest corporate retreat facility would increase the use of the forest as well as address the need for accommodation with the Counties. Conferences and events could be held at this facility that would help to off-set other expenses for maintaining the recreational activities which take place year-round within the forest. This opportunity is enhanced by the proximity to two of Canada‟s major metropolitan areas; each of which have corporate headquarter operations that could take advantage of such a facility.

The sweet spot could be further enhanced by the development of a university or college-based agritourism/recreation course. Working towards a partnership with institutions in Montreal and Quebec City such as the University of Quebec, McGill University, and Algonquin College could help connect Prescott-Russell with the rural creative economy and should include a shared understanding of the skills necessary for development in the creative age. An example of an educational institution already offering tourism and recreation programming exists in the Niagara region, where Brock University offers a Tourism Planning and Development Degree, a Recreation and Leisure Degree program, and a research institute that studies cool climate viticulture, oenology, wine business and wine culture through the internationally recognized Cool Climate Oenology and Viticulture Institute (CCOVI). A connection to a local university or college could offer an opportunity to develop an agritourism-based course that is related to agritourism planning, management and development issues. As there are so many farms already located within Prescott-Russell, the area would be well suited to host a program requiring the use and understanding of the natural environment. This could contribute positively to the overall quality of life of the area as courses could be offered locally and would allow locals to remain in the community while furthering their education. Hospitality training focused on customer service and tourism planning will further contribute to the overall visitor experience and number of return visitors to Prescott-Russell.

Further to this, the Martin Prosperity Institute, a leader in studying the creative economy, suggests that linkages could be made between tourism and educational institutions through programs which include:

 Professional, scientific, and business services  Financial services  Accommodation, tourism, and entertainment  Processed food

6 United Counties of Prescott and Russell. (2008). Protection and development plan of Larose Forest.

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 Life sciences, medical devices, analytical instruments  Education and knowledge creation  Information and communication technology.  The emergence of new educational opportunities will be a key to realizing some of the economic opportunities that lie ahead in Prescott-Russell. The advancement of culinary tourism, events and festivals, and increased educational opportunities will contribute greatly to the overall quality of life in the area. The continuation of educational opportunities will further aid in creating a strong sense of place for current and future residents and will assist in ensuring that local students stay in the region as long as possible.

3.4 The „Pyramid of Support‟ The development of a genuine cluster-growth strategy, however, is not merely an exercise in identifying areas of strength. In a previous section of this report, cluster development was premised on the idea that industry groups together in nodes of concentration. More recently, cluster development has become a more nuanced approach that attempts to articulate core messages about how the configuration of the cluster strengths may be deployed to meet the needs of business in a way that drives economic growth and increased employment. It is about identifying specific and tangible reasons why an existing local business, a new entrepreneur or an external investor would choose to invest or reinvest funds within the community.

This shift is discussed at length in a range of specialist literature, including Per Lundequist and Dominic Power‟s 2002 paper Putting Porter into Practice? Practices of Regional Cluster Building: Evidence from Sweden. They suggest that economic developers “use the term „cluster‟ as something of a buzz word that represents a shift away from narrowly focused firm-based strategies to more holistic regional economic development approaches...”

They also argue that this activity, while not clustering in the traditional sense, has proven highly effective in a range of jurisdictions. This revised cluster theory represents a significant shift in economic development thinking, as it suggests that a range of local actors – not just businesses – can play an important role in driving economic growth. As the US Department of Commerce has argued, “Cluster theory also describes how factors external to the firm impact competitiveness and innovation. It is not just the characteristics of firms that create a truly competitive cluster; there are regional factors external to the firm that matter as well.”

The process of mobilizing these external factors is only partially understood. However, in 2004 Maryann Feldman and Johanna Francis argued that there are three basic stages of cluster formation. They describe these in Homegrown Solutions: Fostering Cluster Formation as:

 The movement from latent entrepreneurship to active entrepreneurship

 The initial formation of the cluster

 The development of a fully functioning entrepreneurial environment within an innovative and adaptable industrial cluster

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By linking the early stages of cluster development directly to this latter factor, the “entrepreneurial environment”, the cluster can be considered rooted in a specific operational environment or business climate of a given community - which in the context of entrepreneur and small business development means an area rich with opportunity, commercial and industrial interconnectedness, support structures, and human and financial capital.

Agriculture has been identified as the anchor between two areas of cluster convergence: agriculture, manufacturing, and transportation and warehousing; and agriculture, tourism and culture, and recreation. This section has suggested that the interconnectedness needs to be embedded in a broader network of community and institutional support. Millier Dickinson Blais uses a pyramid model to visualize this broader network of support systems required for a fully functioning, innovative and adaptable convergence cluster to thrive.

The top of the pyramid is represented by companies operating in the areas of convergence, visualized as the “Sweet Spot” on the previous diagrams. The next layer is composed of first tier suppliers – those companies that supply the immediate inputs to the companies in the targeted area. In populating this layer of the pyramid, the question to ask is, “what are the inputs required by the target firms and what, if any, of those goods are supplied locally?” The subsequent layer is composed of services required of businesses including financial and professional services. However, recall the focus is not on services required of all businesses but by those businesses operating in the convergence areas. Finally, the bottom layer of the pyramid is composed of a broader set of institutional support.

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Figure 5: Pyramid of support

To further understand the lower tiers in the pyramid, Millier Dickinson Blais employs a value chain assessment using a methodology developed by Dr. Edward Feser, the head of the Department for Urban and Regional Planning at the University of Illinois at Urbana-Champaign (UIUC). In the course of his work on regional economic analysis and supply chains, Dr. Feser has done detailed analysis on national level US statistical data related to input/output of sales, in order to develop a measurement of the relative strength of inter-industry linkages. Feser‟s work shows the connection between „Core‟ and „Linked‟ Industries. “Core” industries are the specific economic sector being studied. “Linked” industries are either suppliers to the core industry (backwards linked) or purchasers from the core industry (forwards linked).

The average propagation length (APL) is used to note the strength of the industry connection, both forwards (linked industries that „purchase‟ from the core industry), and backwards (linked industries that „supply‟ the core industry). Generally speaking, the average propagation length is the average number of steps or time it takes a stimulus in one industry to propagate and affect another industry.7 The lower the APL value, the tighter the linkage between a specific industry and the core industry. The relationship is noted by the figure below.

7 Dietzenbacher, E. and Romero, I. Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths. International Regional Sciences Review, 2007

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Figure 6 : Conceptual Diagram of Industry Linkages

Backward Forward linked BW Core Industry FW linked industry APL APL industry

For Prescott-Russell, this analysis offers a unique way of exploring the broad set of supporting firms, institutions, and agencies that can assist with the growth of businesses in the convergent clusters. This mapping can be compared to the existing complement of agencies in Prescott- Russell, in order to drive investment attraction, key messaging, and service delivery enhancements.

Data in a Canadian context was obtained at a June 2009 workshop with Dr. Feser, supported by the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA). This data was used as a basis for the industry linkage analysis in this project. The methodology that was employed for this analysis was as follows:

1. The industry clusters were first defined by four digit NAICS codes for the purposes of data analysis and sector characterization. These select NAICS codes were then used as the NAICS definition of each of the target sectors.

2. Dr. Feser‟s analysis relies on 180 generalized industry groupings containing one or more four-digit NAICS code. The NAICS codes within the target sectors were then attributed to their respective „industries‟ in order to undertake the linkage analysis. These became the „core‟ industries; of which there were multiple for each target sector.

3. A list was then produced of the top 20 backwards linked industries (suppliers) for each of the core industries. In order to undertake further analysis, each of the backwards linked industries was related back to the four-digit NAICS code(s) that defined it.

Despite the analysis being based on statistical evidence of industry relationships, there are several notes that must be made regarding the limitations of the analysis. Ideally, each of the convergence zones would correspond with a major NAICS industry sector or four-digit NAICS industry group.

 Industries included in the target sector NAICS definition may include industries with a very weak connection to the core activities of the target sectors.

 The analysis provides the strength of the industry linkage, but little information about how the industries are linked, or through what products. An explicit indication of what products or services link different industries could be useful when looking at industries with weak relationships.

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Through the analysis outlined above, the pyramid of support can be developed for both of the convergence sectors identified in Prescott-Russell. The contents of each of the pyramids are represented in the figures below.

Figure 7: Support for Prescott-Russell‟s Strategic Economic Convergence

Economic Development Convergence – Companies at the Most Visible convergence of Agriculture, Manufacturing, and Transportation, Industry warehousing and logistics  2211 - Electric power generation, transmission, and distribution  2213 – Water, sewage, and other systems  3141 – Textile furnishings mills First Tier  3149 – Other textile product mills Suppliers  3241 – Petroleum and coal products manufacturing  3262 - Rubber product manufacturing  3322 - Cutlery and hand tool manufacturing  3379 – Other furniture-related product manufacturing8  4831-32 – Water transportation and support  4841-42 – Truck transportation and support Service Sector  8113 – Commercial and industrial machinery and equipment (except Support automotive and electronic) repair and maintenance  8123 - Dry-cleaning and laundry services Institutional and Community  6112-13 – Junior colleges, colleges, universities and professional Support schools (education,  8139 – Business, professional, labour and other membership government, organizations NGO)

Figure 8: Support for Prescott-Russell‟s Creative Placemaking Convergence

Most Visible Quality of Place Convergence – Companies at the convergence of Industry Agriculture, Tourism, and Recreation and culture  2211 – Electric power generation, transmission, and distribution  2213 – Water, sewage, and other systems First Tier  3149 – Other textile product mills Suppliers  3152 – Cut and sew clothing manufacturing  3254 – Pharmaceutical and medicine manufacturing  3332 – Industrial machinery manufacturing Service Sector  4851-59 – Transit and ground passenger transportation Support  5221 – Depository credit intermediation

8 Establishments primarily concerned with manufacturing of mattresses, blinds, shades, and related fixtures

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 5311-13 – Real estate services  5321 – Automotive equipment rental and leasing  5418 – Advertising and related services  5615 – Travel arrangement and reservation services  8114 – Personal and household goods repair and maintenance  8123 – Dry-cleaning and laundry services Institutional and Community  6112-13 – Junior colleges, colleges, universities and professional Support schools (education,  7111 – Performing arts companies government, NGO)

Theoretically, the charts above identify the pyramid of support for each of Prescott-Russell‟s target areas. Each “layer” of the pyramid has been “populated” or “filled in” by the target sector supplier relationships developed in the value chain analysis and other research. The types of industry sectors and support organizations presented in the preceding tables are therefore potential targets for local business expansion or external investment attraction activities in Prescott-Russell.

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4. Geography and Economic Opportunity The geography of economic development (i.e. the locational, spatial, or connective factors that present or deter economic opportunities) has been the subject of considerable debate over the last several decades. Increasing globalization, as authors like Thomas Freidman have argued, is contributing to a „flattening‟ of the world. Technology is levelling the competitive playing field, and opportunities to innovate are less influenced by physical place. Above all else, they argue that technological advancements have eroded the importance of geographic place.

However, contrasting theories have emerged as well; one of which being the world as a „spiky” place. Originally published in 2005, and continued in the 2008 work Who’s Your City? Richard Florida notes that despite the “flattening” effects of technology and globalization, there is still a geographic clustering of the globalized economy. Increasing concentrations of higher level activities such as innovation, design, and finance are creating „spikes‟ of economic creativity in a relatively small number of locations. But taking this notion a step further, Florida suggests that it is agglomerations of these „spiky‟ areas that will compete most successfully on the global scale. These agglomerations or “Megaregions” connect the „spikes‟ of innovation and economic activity, as well as the „valleys‟ between them into new region-states that often span political boundaries, and form the new organizing economic units through which areas will compete.

Central to Florida‟s argument and the arguments of other economists, authors, and urban thinkers is that „place‟, location, and proximity still matter, in contrast to the idea of a „flat‟ world. For example, Harvard Business School professor Pankaj Ghemawat argued in 2007 that despite the advancements that technology and globalization promise of a globally connected world, the majority of communications, web traffic, investment, and migration are still domestic. Though globalization is an economic reality and international trade flows will make up an increasing amount of global economic opportunity, domestic trade, geographic proximity, and quality of life still play significant parts in determining economic prosperity.

The most recent work by Richard Florida, The Great Reset explains the new realities in which cities and Megaregions will compete for people and business investment, especially in the dramatically restructured global economy that has resulted from the latest economic downturn. Florida suggests that after each historical economic downturn, there has been an economic “reset” that changed the way people lived and worked, and shaped the geographic and economic distribution of cities and regions. The “new normal” that has emerged as a result of the most recent economic downturn will reflect:

 New attitudes towards consumption and ownership, especially for big-ticket items like houses and cars  The transition of millions of service jobs into middle-class careers that utilize the creative and innovative talents of those workers  New and different types of infrastructure for moving goods, people, and ideas at a faster pace

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 A very different and much denser economic landscape organized into “Megaregions” that drive the development of new industries, jobs, and quality of life

One of the key elements of success within these Megaregions under the “new normal”, Florida suggests, is the ability to move people and goods – “the tangible bits of the real world” – at a similar rate with the flow of electronic information through the virtual world, again giving importance to proximity, location, and geography. Overall, this suggests that areas more efficiently connected to the major city-centres that will have the highest concentrations of jobs, innovation, and commercial activity, will be positioned well for economic prosperity as the new economy progresses. This includes physical connections like infrastructure, but also economic connections such as trade between the centres.

4.1 Prescott-Russell and the Megaregion Prescott-Russell is part of the Tor-Mon-Tawa Megaregion, which is home to approximately 22 million people and $530 billion in economic assets. It is also one of the world‟s 40 leading Megaregions, which collectively produce two-thirds of the globe‟s economic output, and nine of every 10 innovations. As the economic unit moves from cities and regions based on political boundaries to larger economic regions and „Megaregions” that span those boundaries, it becomes important that places just outside of major urban centres like Prescott-Russell, understand their position within these larger economic engines.

From that perspective, several opportunities emerge for Prescott-Russell, largely based on proximity and location. Firstly, as the background economic analysis suggested, the area is uniquely well-positioned to serve both the Ottawa and Montreal markets. Situated approximately halfway between those two markets, Prescott-Russell offers easy access to either city, opening a number of opportunities for warehousing, manufacturing, and transportation operations, especially those focused on the Ottawa and Montreal markets and their emerging and existing areas of economic activity.

Further, Prescott-Russell‟s strengths in agriculture offer it a unique positioning within the Megaregion. In order to be successful, Megaregions need to act as integrated economic units, which are relatively self-sustaining. Recent concerns about the price of oil, its effect on the prices of agricultural commodities, and the sustainability of the existing global food chain have placed a renewed emphasis on local foods. As such, it will be increasingly important for each of these Megaregions to source local alternatives to feed their populations. Again, positioned between two major urban centres, Prescott-Russell has an opportunity to serve both that regional population, but also support agri-food business development opportunities geared towards that population.

Additionally, the area offers a unique quality of life alternative to the urban lifestyle in either the Ottawa or Montreal markets. While the theories noted above suggest that overall migration will be biased towards urban areas, there will still be a subset of the population that prefers to live outside of those major urban centres. Indeed, the „spiky‟ areas will draw a number of new residents, while other areas will likely still draw a certain subset of entrepreneur and small business owner looking to take advantage of a more „flat‟ world. In other words, the flattening

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technologies will still permit a number of innovations to happen in areas outside of the concentrated city-centre areas. As such, Prescott-Russell offers a different quality of life opportunity which should be cultivated to attract talented innovators. The quality of the opportunity increases when proximity and the fact that the Counties are within the commuter- shed of Ottawa-Gatineau is considered. In addition, the Counties are close, but just outside the commuter-shed of Montreal.

As a final note, though, it is important for Prescott-Russell to understand its natural market orientation and where the opportunities to interact with the Megaregion lie. While Prescott- Russell may not necessary be as well positioned as other areas to the south to interact with both the Greater Toronto Area and Montreal, it is extremely well positioned to interact with the Ottawa-Montreal Corridor, or an estimated market of over 5 million people in those two metropolitan areas alone. Areas like Cornwall to the south have carved out a place as a distribution hub along the important Windsor-Quebec corridor and, as such, play a vital role in distribution throughout the Megaregion. In addition, those areas directly situated along the existing rail and road transportation corridors, especially Highway 401, are well poised to capture many of the significant opportunities as trade passes through the area, such as in distribution, logistics, manufacturing, and warehousing.

This is not to say that the only opportunities will be along that corridor. As mentioned above, the Ottawa-Montreal corridor offers a market of over 5 million people, and those metropolitan areas exhibit economic strengths in areas like aerospace, telecommunications/IT, green industry and clean technology, life sciences, and agri-food to name a few. As such, the strategic location between both centres offers Prescott-Russell opportunities to interact with those two markets. For example, the emerging agri-food industries in both centres can provide opportunities for Prescott-Russell‟s farmers, especially those in dairy and crop farming. Emerging clean technology and green industry opportunities like biomaterials and bioenergy enhance those food opportunities. Further, Prescott-Russell‟s proximity to major transportation infrastructure in Montreal such as Mirabel and Trudeau Airports, the Canadian National and Canadian Pacific rail intermodal facilities, and the Port of Montreal, and in Ottawa such as MacDonald-Cartier International Airport, provides the area with a link well beyond the borders of the Megaregion.

4.2 Linking to the Megaregion Connections that facilitate the quick movement of goods and people throughout the Megaregion represent a primary means of ensuring that prosperity is distributed outside of city-centres. The timing and nature of improvements to one existing connection between Ottawa and Prescott- Russell, the 22 km section of Highway 174/17 between Trim Road and County Road 8, has been subject to considerable debate over the past several decades. Different levels of government have expressed an interest in addressing the challenges along this section of highway at different times, most notably safety and traffic congestion. However, for every major funding commitment, there has been an obstacle which has prevented the plan from proceeding any further.

The need for improvements to County Road 17 was first recognized in a widening study completed by the Ministry of Transportation in June 1992. The study concluded that, among

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other improvements, the section of the highway between Trim Road and County Road 8 be widened to four lanes with a median barrier. In 1997, Highway 174/17 was downloaded to the former Regional Municipality of Ottawa-Carleton and the United Counties of Prescott and Russell. This transferred the cost and coordination of the widening and improvement project to the lower-tier governments, and in part stalled the project from moving further. Residential development in Cumberland, Clarence-Rockland, and other areas to the East are considered to have intensified the problems with safety and congestion since that time.

In 2007, the Province of Ontario announced a contribution of $40M towards an Environmental Assessment (EA) and resulting construction costs for the Highway 174/County Road 17 corridor between Trim Road and County Road 8. The Federal government matched this contribution under the Build Canada program for a total project of $80 M, citing the need to improve safety along the highway, reduce congestion, and combat air pollution. The original Provincial contribution called for the City of Ottawa and the United Counties of Prescott and Russell to contribute $15M and $9M to the project respectively.

In March 2008, the City of Ottawa received a letter from the Ministry of Transportation offering a $5M grant to assist with the EA. The City declined the $5M grant primarily because the highway expansion was not needed to address growth planning for the City over their 20-year planning horizon. Further, the City noted that an expansion of the highway was contrary to many of the policies and priorities in their Official Plan and Transportation Master Plan, namely mitigation of urban sprawl, and a greater emphasis on public transit throughout Ottawa‟s commuter-shed. The City also suggested that widening the Highway could be a detriment to highway conditions downstream (namely at the Highway 174/417 split), and would only produce benefits for Prescott-Russell. In closing, the City agreed to authorize the study on their section of the highway only if all costs were borne by Prescott-Russell and/or the Province.

The City suggested that if safety was the primary motivator for undertaking the study and expansion, an In-Service Road Safety Review (ISRSR) would be a more appropriate solution. Completed in 2009, the ISRSR recommended a number of improvements to the Highway 174 section of the corridor, such as lighting, signage, pavement markings, improved turn geometries, and roadside safety improvements. The improvements were to be funded within existing or planned capital budgets, with contributions from other levels of government where possible. The ISRSR also found that widening of that section of highway could not be justified based solely on safety factors. Instead, a traffic capacity study would be required to study the delay benefit and/or compromise corridor wide, before a widening could be justified.

In May 2010, the Province of Ontario announced a grant of $4M to begin the environmental assessment phase of the Highway 174/17 improvement project. The two-year, Prescott-Russell led project will focus exclusively on the 8.4 km section of Highway 17 to the east of Canaan Road. Staff from Prescott-Russell have been directed by Council to reopen the lines of communication with the City of Ottawa, in an effort to extend the scope of the EA to the entire 22 km stretch of road. The intention is to undertake the EA in a manner that examines the entire highway corridor, rather than one section in isolation, and determines the costs and measures

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that will need to be taken to mitigate existing congestion issues across the corridor and further downstream, as well as improve safety.

The benefits to Prescott-Russell and more specifically Clarence-Rockland are clear. The study will begin to address additional safety concerns not covered in the previous ISRSR, and make recommendations that will improve safety along the entire 22 km corridor, benefitting the estimated 6,000 commuters who use the road everyday to reach Ottawa. Further, the higher capacity corridor will ensure a more consistent flow of trade between the United Counties of Prescott and Russell and the City of Ottawa, and could act as a driver for additional residential and commercial development in Clarence-Rockland. In turn, this could bring new residents to Clarence-Rockland and Prescott-Russell, possibly generating new business ventures as highly skilled individuals move into the area. It could also improve the movement of goods between the two centres.

The commencement of the project appears to depend on establishing clear benefits for Ottawa. These benefits seem less evident than those that Prescott-Russell could accrue from an expansion to the corridor. The EA study would recommend improvements to the corridor east of the heavily travelled section within the City of Ottawa, including the Highway 174/417 split. Therefore, it has the potential to mitigate some of the negative issues like congestion, which currently affect the corridor. With a change in leadership in both Ottawa and Prescott-Russell, there may be an opportunity to start the discussion with a relatively clean slate. The United Counties should consider that a simple highway widening may not resolve the problems that currently exist, and must be open to alternative solutions if they present more mutual benefits. As noted in the previous section, connections with major city-centres will become increasingly important for areas in the periphery of the Megaregion, so it is imperative that Prescott-Russell works with Ottawa to ensure this connection stays viable.

4.3 Mapping Prescott-Russell‟s Economic Opportunities The opportunities outlined in previous chapters as well as the background economic analysis report will come from across Prescott-Russell. However, some areas exhibit higher concentrations of establishments and therefore may be better positioned to drive economic opportunity and progress. For example, while the whole of Prescott-Russell exhibits strength in manufacturing, the Town of Hawkesbury contains a higher concentration (by location quotient) of establishments engaged in the sector than the other municipalities in the Counties. Thus, Hawkesbury represents perhaps the most likely place to target the growth of manufacturing.

Considering the concept of economic convergence, an assessment of more local strength can also suggest, geographically, where convergence may be likely to happen due to concentration of businesses in the component sectors. For example, if adjacent municipalities exhibit high concentrations of establishments in agriculture and manufacturing, perhaps either municipality presents a suitable location for establishments within the convergence between the two industries, such as food processing or biomaterials development.

The following series of maps identify the relative concentration of establishments engaged in different sectors of note for Prescott-Russell in each of the municipalities across the United

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Counties. To assess the concentration of establishments in each municipality, location quotient9 data from the OMAFRA REDDI tool calculated with Canadian Business Patterns Data from 2007 was used. It should be noted that strengths in adjacent municipalities may suggest economic development potential in areas that utilize both of those strengths. However, that does not mean that it is the only area in Prescott-Russell where businesses in that convergence area will develop. Nevertheless, an examination of the relative concentration of establishments across the counties can inform a number of areas of the strategy, such as geographically targeting service delivery or informing marketing strategies with more local industrial strengths.

The following map identifies the relative concentration of business establishments engaged in the agriculture, forestry, fishing, and hunting sector across Prescott-Russell in 2007. Both The Nation and East Hawkesbury exhibited very high concentrations of establishments in the sector in 2007. All other municipalities, with the exception of Hawkesbury, exhibited high concentrations in the sector suggesting good potential across the counties.

Figure 9: Location Quotient, Business Establishments in Agriculture, Forestry, Fishing, and Hunting, 2007

Source: Statistics Canada, REDDI, Canadian Business Patterns, 2007

9 See the background research and appendices report.

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For the manufacturing sector, only the Town of Hawkesbury exhibited a high concentration of establishments. East Hawkesbury and The Nation exhibited average concentrations of establishments in 2007, while all other municipalities exhibited low concentrations of establishments engaged in manufacturing. When considering some of the opportunities where manufacturing can act as a driver for development, Hawkesbury may be best positioned to accommodate those opportunities given the current business characteristics of the Town. Though background research noted a slight decline in business establishments in the sector from 2006 to 2009, the sector remains stable and an area of opportunity across the Counties.

Figure 10: Location Quotient, Business Establishments in Manufacturing, 2007

Source: Statistics Canada, REDDI, Canadian Business Patterns, 2007

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In the transportation and warehousing sector, none of the municipalities exhibited a high concentration. All municipalities except Casselman and Russell had average concentrations of establishments in 2007. That being said, the transportation and warehousing sector was identified as a growing sector in the background research report, given that the number of establishments increased across the counties to 2009, and employment has stayed relatively stable. The concentrations of establishments in Casselman and Russell are likely a result of the advantageous position of the municipalities along the Highway 417 corridor. Given an average concentration of establishments and transportation links, there may be excess capacity for growth in these municipalities, but also perhaps The Nation.

Figure 11: Location Quotient, Business Establishments in Transportation and Warehousing, 2007

Source: Statistics Canada, REDDI, Canadian Business Patterns, 2007

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In arts, entertainment, and recreation, Alfred and Plantagenet, Casselman, Hawkesbury, and The Nation exhibited average concentrations of establishments in the sector in 2007, while all other municipalities had low concentrations. In part, these concentrations match some of the more recent trends and developments in the sector, such as Calypso locating in The Nation, but also the existing recreational assets like the Larose Forest, the Marina in Hawkesbury, or the Alfred Bog in Alfred and Plantagenet. Though, as was noted previously, these are not the only areas of opportunity in the sector. Examples like the development of the Canadian International Hockey Academy in Clarence-Rockland prove that there is potential in the sector outside of the slightly more concentrated areas.

Figure 12: Location Quotient, Business Establishments in Arts, Entertainment, and Recreation, 2007

Source: Statistics Canada, REDDI, Canadian Business Patterns, 2007

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In accommodation and food services, Alfred and Plantagenet and Casselman exhibited average concentrations of establishments in 2007. All other municipalities across Prescott-Russell had low concentrations of establishments in the sector, which echoes much of what the project team observed and heard through the process. The most significant conclusion that can be made from this relates to the potential for further development. With current concentrations of establishments in the sector low there is certainly potential for future development across much of Prescott-Russell.

Figure 13: Location Quotient, Business Establishments in Accommodations and Food Services, 2007

Source: Statistics Canada, REDDI, Canadian Business Patterns, 2007

Overall, the maps identify several sub-regional business development opportunities given levels of concentration among the different municipalities. Though they are based on business concentration alone, potential opportunities might include:

 Manufacturing intersecting with agriculture, such as food processing or biomaterials in the Town of Hawkesbury  Businesses at the intersection of agriculture, recreation, tourism, and accommodations in the municipalities with average to high concentrations in those sectors, such as The Nation and Alfred and Plantagenet

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 Developments in recreation in close proximity to the Ottawa River and the Highway 417 corridor, regardless of existing business concentration  Transportation, manufacturing, and agriculture intersecting at the eastern edge of Prescott-Russell in Hawkesbury, East Hawkesbury, and Champlain

Again, these maps do not necessarily note exclusively where opportunities will emerge across Prescott-Russell. The business concentration maps instead provide a visual cue about where the opportunities may be more likely to occur. Given the size and diversity of Prescott-Russell, it is logical that different areas may be better suited to facilitating economic opportunities in the niche areas where opportunity exists at the regional level.

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5. New Directions in Tourism Structure The United Counties of Prescott-Russell are experiencing a growing demand for tourism throughout the region. Not only are tourists taking note of the exciting opportunities the area has to offer, but the local population is also showing strong support for the industry. Tourism has been embraced and the region is now faced with the challenge of establishing a structure that facilitates the collaboration of all industry stakeholders.

The industry is somewhat fragmented as it is divided between multiple communities, companies and associations. Additionally, the region has had to transition to become a part of the newly established Regional Tourism Organization (referred to as Ottawa Tourism) or RTO #10. In order to ensure that the United Counties do not lose the traction they have gained on the tourism front in recent years, the various stakeholders will need to get behind a common goal and allow for the co-ordination of their efforts in achieving that goal and maintaining positive momentum.

Figure 14: Tourism Stakeholders in UCPR

Communities Township of Alfred and Plantagenet Village of Casselman Township of Champlain City of Clarence-Rockland Town of Hawkesbury Township of East Hawkesbury The Nation Municipality Russell Township Industry Players Prescott-Russell Community Development Corporation Prescott-Russell Tourism Association (PRTA) Prescott-Russell Economic Development and Tourism Various information Centres: Hawkesbury, Casselman, Limoges, and Vankleek Ottawa Tourism Regional Tourism Organization Accommodation establishments Food and Beverage establishments

This report recognizes that there is already a tourism association in the Counties. This report suggests replacing the organization with another that more clearly defines the 'who does what' in Prescott- Russell's growing tourism industry. This new tourism organization would also inform the Regional Tourism Organization about what is going on in Prescott-Russell. Overall, redefining the existing structure will help to ensure that projects will not be duplicated, organizations will not be competing for funding, and the industry will be able to accomplish a greater number of tasks.

There is no “one size fits all approach” to tourism development. What works in one area may not work in another, and while there is no single formula for successful destination tourism, there

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are planning and design principles appropriate to the destination scale that must be considered. These include10:

 Integration into a region-wide strategy

 Creation or attraction of a distinctive image

 Implementation of public-private partnerships

 Accumulation of a critical mass of attractions, services, facilities, amenities and transport linkages - all within carrying capacity limits.

What makes a destination marketing organization (DMO) work well can be applied to establishing a successful tourism association in Prescott-Russell. While many DMO's are built on a collaborative network, some can become too focused on only the largest community and the hotel industry. This can be very productive and functional, but can also be problematic and highly political11. A successful tourism association should be built on these recommendations12:

1. Employ a strategy of collaboration with strategic stakeholders

2. Institutionalize the collaboration with strategic stakeholders by ensuring they are represented on the board of directors

3. Ensure regular, frequent, and clear communication with members using personal relationships

4. Receive, interpret, and disseminate market information to stakeholders.

In the traditional tourism industry, it was felt that the sustainable approach to destination planning and management would ideally require that marketing and product development are undertaken by individual organizations and then shared in an integrated manner. However, this approach has not always worked, and it appears as though it is not the preferred method for the United Counties of Prescott-Russell. This is because "destination marketing" and "product development" are often conducted by very different organizations located within and outside the tourism destination, at different times, and by different stakeholders with different agendas, values, and ideas.

The main problem in this case is that a gap exists between destination marketing activities and tourism planning. This gap must be bridged in order to achieve an integrated and sustainable tourism destination. This gap is further exacerbated by the fact that tourism organizations can be public, semi-public or private organizations and may be funded by a mix of public and private

10 United Nations. (1999). Guidelines on integrated planning for sustainable tourism development. 11 Jamal, T & Robinson. M.(eds). (2009). The SAGE handbook of tourism studies. SAGE Publications: London. 12 Ibid

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revenues. As a result, the driving objectives can be quite different, and it can be a challenge to ensure sustainable and integrated destination development and management13.

This situation is seen to some extent in Prescott-Russell. For example, the annual visitors guide is produced by the Counties‟ Economic Development and Tourism office. Because this document is developed with public funds, many tourism businesses feel that they should automatically be included, without paying a fee. Advertisements in the annual brochure cost money, and if a private organization were to take on this project it could serve as a fund-raiser rather than contributing to a deficit as it currently does for the Counties.

It is recommended that the United Counties of Prescott-Russell implement Destination Management Planning (DMP) principles, which are increasingly becoming the preferred approach to the above-noted challenges. In this context, Destination Management Planning (DMP) represents an effective mechanism for improved cooperation and collaboration with local industry, and for strengthening partnerships with regional economic development agencies/boards and education and training providers. It is a management system that provides tourism organizations with the tools to produce sustainable and competitive tourism in a destination and is a step forward from traditional marketing roles. DMP provides a more holistic and integrated approach to understanding the unique tourism potential of each destination and the best methods for maximizing that potential.

The potential benefits for destinations, communities, business operators and tourism agencies that can be achieved through an effective and consistent approach to DMP include:

 Improved destination competitiveness

o Increased destination appeal resulting in increased visitation and yield

o Advantage over other destinations

o Ongoing investment in tourism

 Increased visitor satisfaction

o Delivering on the brand promise

o Increased repeat visitation

o Enhanced destination reputation

 Economic, social and environmental sustainability

o Increase in tourism's contribution to destination's economy

o Community support for tourism development

13 Jamal, T. & Dredge, D. (n.d). Sustainable destination management and the marketing-planning gap: collaborative networks and new organizational forms.

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o Controlling tourism's environmental impacts

o Long-term industry viability

 Effective partnerships

o Strong partnerships between community, industry, government, development agencies, etc.

o Avoiding duplication of resources

o Bringing a focus to developing the full visitor experience from arrival through to departure

o Increasing the profile of tourism in regional destinations

o Minimising conflicts between tourism and other sectors

 Continuous improvement

o This framework encourages continuous improvement (not just "set and forget")

o Early awareness of emerging trends

o Development of innovation and new technology

o Constant refreshing of destination brand

Destination Management Planning involves the integration of several practices, such as destination development planning, destination marketing, and destination management. This process should be undertaken by the newly established (or re-organized) tourism association. In devoting time towards these three areas the United Counties of Prescott-Russell will create a stronger, more efficient tourism industry. It is where these three areas intersect that a competitive tourism destination is realized, as shown in the figure below.

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Figure 15: Framework for Destination Management Planning

Source: Australia Ministry of Tourism. (2007). A national framework for best practice destination management planning.

Tourism organizations employ a number of organizational structures and strategies. In order to build a framework for the United Counties of Prescott-Russell, a review of 'Best Practices' was undertaken.

5.1 Best Practices: Tourism Marketing and Development Organizations

5.1.1 Ottawa Valley Tourist Association

The Ottawa Valley Tourist Association is a non-profit organization designed to stimulate and promote tourism in Renfrew County. It represents over 60 communities and operates through a Board of Directors (11 members in total) made up of industry stakeholders such as tourism organizations, councillors, Mayors, etc.

The association has a marketing committee of 12 persons made up of representatives from the board of directors as well as other members. The objectives of the marketing committee are to:

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o Increase the level of awareness of the Ottawa Valley, branded as "Ontario's Adventure Playground" and "Whitewater Capital of Canada", as a four-season tourist destination to appropriately targeted markets.

o Increase access to visitor information year-round

o Increase the number of visits to the Ottawa Valley in the most cost-effective manner possible

o Increase the average length of stay by visitors through improved access to travel information and hospitality

5.1.2 Taste the County, Prince Edward County Taste the County is a non-profit organization that was established in 1999 to build marketing and quality enhancement for Prince Edward County (PEC). The organization has three people on staff and is governed by a volunteer board of directors, which includes a chairperson, treasurer, secretary and nine directors who represent the local tourism industry. Its mandate is to stimulate agricultural and tourism economic growth through sustainable event marketing and project management in Prince Edward County.

Their mission is to successfully promote PEC as a unique destination to stimulate growth. The services provided include:

 Marketing of partner products and services, using targeted media to attract a targeted audience  Management and marketing for events held within the County  Project management of approved projects that further the mandate of Taste the County  Advocacy for initiatives and products that will benefit the County as part of a broader region  Consulting services related to event and project management, fundraising and marketing on a community or regional basis.

5.1.3 Québec City Tourism

Québec City Tourism has over 1,050 members in Québec City and the surrounding areas of Portneuf, Jacques-Cartier, Île d'Orléans, and Côte-de-Beaupré. It guides and leads tourism industry growth and contributes to industry prosperity through its marketing and development efforts, hospitality services for tourists, and information to the industry.

Quebec City Tourism is both a regional tourism association and a department of the City of Québec. The administrative structure includes a board made up of 11 directors who represent the various activity sectors within the tourism industry and the regional county municipalities, as well as management and four divisions (Development, Strategy and Planning; Communications

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and Advertising; Promotions, Sales and Services; and Administration, Hospitality and Member Services). Each division has its own unique mission and mandate.

5.1.4 Australian Regional Tourism Network

The Australian Regional Tourism Network (ARTN) is governed by a board of directors elected by members at each annual general meeting of the Association. This Board consists of a chairperson, deputy chair, treasurer, secretary, and nine directors. Typically every state and territory is represented, as is each sector of the industry including regional tourism organizations, local government, state tourism organizations, private operators and industry associations. Directors meet semi-annually via teleconference and bi-annually at the ARTN Strategic Planning Retreat and the Australian Regional Tourism Convention. All current financial members of the ARTN are eligible for election. The day-to-day operations of the ARTN are managed by secretariat staff based at Southern Cross University‟s Lismore campus.

The Australian Regional Tourism Network is an incorporated association run by members, for members, and is:

 A voice for regional tourism‟s challenges and achievements,  A hub for knowledge sharing and collaboration,  A conduit between researchers and industry, and  An advocate for sustainable regional tourism development.

The ARTN example demonstrates effective organizational structure and dedication to Destination Management Planning. Its membership structure is based on 5 tiers, the fifth being a 'subscribers' fee which is recommended for chambers of commerce, individuals, students and visitors. This tier membership structure gives the members greater flexibility in choosing the services they require at the price that best suits their needs. A detailed ARTN Memberships Structure is provided in the background analysis and appendices document.

5.2 Recommended Structure for Prescott-Russell A potential organizational chart for the new Regional Tourism Network of Prescott-Russell is displayed below. This structure is for demonstration purposes only and could be altered based on goals and objectives established at a later date. What is important to note is that a successful tourism network will require human capacity. The Prescott Russell Tourism Association has recently received funding to hire one staff person. While this is a significant accomplishment, it is likely that as the organization progresses there will be a need for more support staff in order to achieve the network‟s goals.

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Figure 16: Regional Tourism Network Draft Structure

5.2.1 Board of Directors A volunteer Board of Directors would oversee the operations of the Tourism Network. This group of individuals would use their professional expertise and local experience to inform the Executive Director. A staff-person would work with the Executive Director to carry out Board- driven initiatives. A Board meeting once per month is recommended in order to give the Director, as well as the staff person, direction for upcoming initiatives.

The Board of Directors for the United Counties of Prescott-Russell Regional Tourism Network should be made up of representatives from throughout the regional tourism economy, including economic development/tourism officers, visitor information centre managers, accommodation industry managers, food and beverage industry managers, etc. This will ensure a true regional tourism network perspective is maintained. This would include representatives from all levels of government across Prescott-Russell as well.

Additionally, the Board should include 5 elected industry partners from within the membership that will represent specific industry with voting rights. The following industries are suggested and can be updated depending on the network‟s tourism priorities:

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 Accommodation  Food and Beverage  Chambers of Commerce (representing regional business)  Events  Recreation businesses  Agriculture and agritourism  Natural resources (i.e. Larose Forest) and ecotourism  Education

5.2.2 Pillars of Growth The three main pillars of this organization would be Destination Development Planning, Destination Management, and Destination Marketing. This network could be an entirely new organization, but it is likely that the current Prescott-Russell Tourism Association (PRTA) would adopt and grow into this new tourism framework over time.

The RTN would facilitate tourism growth and development throughout the region. It would exist to be a:

 Voice for regional and tourism challenges and achievements  Knowledge hub for sharing and collaboration amongst industry and its partners  Conduit between research and industry  Advocate for sustainable regional tourism development  Advocate to the Regional Tourism Organization (RTO).

5.2.3 Committees The Regional Tourism Network would be based on three pillars as mentioned above:

 Leadership  Product Development.  Advocacy

Each committee would be responsible for specific tasks outlined in an Annual Operations Plan decided upon by the Board of Directors. Below are potential mandates and areas of focus for each committee.

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Destination Development Planning Committee

Mandate: To develop annual objectives to grow and sustain tourism development and planning.

 Develop a region-wide tourism strategy  Devise a regional tour or circuit strategy  Organize a quarterly networking luncheon/information session to keep abreast of current regional issues that may impact tourism.

Destination Management Committee

Mandate: To establish and carry out annual objectives for attracting tourism operators, investment and tourists

 Advocate to the Municipal/Provincial Government for tourism infrastructure improvements (e.g. highways, sidewalks, air service, emergency services, etc)  Monitor tourism industry trends, challenges, issues and report to Board of Directors monthly and periodically to the RTO.  Monitor regional trends to minimize negative tourism impacts, e.g. environmental degradation.

Destination Marketing Committee

Mandate: To develop and represent networks for lobbying, policy-making and governance

 Develop the Regional Visitors Guide  Increase the web presence for the region through the use of social media, e.g. Facebook page, YouTube channel  Visit tourism businesses to convey membership benefits  Improve tourism signage in collaboration with the United Counties

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6. Strategic Recommendations and Action Plan Any sound economic development strategy must build on the unique assets and resources of a community to form a framework for achieving economic and community prosperity. This framework must contain aspirational goals and objectives, as well as a set of associated actions for achieving these desired outcomes. But a successful strategy implicates more than just the organizations that develop it; it provides a blueprint for the kinds of actions that existing and potential partners can take to assist with achieving the new vision for prosperity. For that reason, the strategy must be generated from a detailed assessment of the local economy and assets, as well as through the consensus of the community it is intended to guide.

Communities are facing new challenges in economic and strategic planning, challenges that are fundamentally altering the tactics that communities are using as well as the goals and objectives that communities are aspiring to. Several broad trends will undoubtedly affect any community‟s strategic plans, regardless of their unique economic situations. These include:

 The rise of knowledge industries and the need for new skill sets within the labour force, and the integration of information technologies into all aspects of the economy

 The globalization of the economy and the need for more regional partnerships and collaborations

 The growing recognition that economic development comes from within (BR&E, gardening, etc) and not without

 The question of sustainability and the environment as an economic development concern

 The convergence of key economic sectors as a driver of local competitive advantage

In part, the recommendations and action plans central to this strategy must be based on a collective vision for Prescott-Russell. Through consultations, the project team observed a number of independent visions regarding what the community should be known for, but the common threads uniting these visions were natural beauty, agriculture, collaboration, culture, rural character, and quality of life. It is these principles, but also the strengths and opportunities in the region that guide the development of the strategic goals, objectives, and actions for Prescott-Russell.

By definition, strategic goals represent the overall vision and desired outcomes of the economic development process. In short, the strategic goals will articulate the kind of community that Prescott-Russell intends to be. Detailed research and consultation has identified two strategic goals to guide the long-term development of Prescott-Russell:

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1. Facilitate new economic opportunities and collaborations based on convergence, creativity, and talent (New economy, creativity and talent development)

2. Create an unparalleled quality of place and remarkable visitor experiences (Quality of place and destination development)

The following section provides an overview of the strategic goals, objectives, and actions. The associated actions are prioritized on a scale from 1 to 5, where actions designated as „1‟ are the lowest priority (long-term) and actions designated as „5‟ are the highest priority (short-term). Further, a scale has been developed to suggest the level of resources required to implement the specific actions, where actions designated as:

 „A‟ require minimal resources

 „B‟ require only staff time

 „C‟ require financial resources less than $20,000

 „D‟ require financial resources more than $20,000 but less than $50,000

 „E‟ require financial resources over $50,000

It should be noted that in some cases, both staff time and financial resources may be needed from a number of organizations to fully implement the action. In an effort to coordinate activity among the various players in Prescott-Russell, potential lead and partner organizations are recommended for each action. Finally, performance measures are proposed for several of the actions in order to assist with evaluating success.

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Goal One

Facilitate New Economic Opportunities and Collaborations Based on Convergence, Creativity, and Talent

In technological terms, convergence is the idea that technologies with distinct functionalities evolve into technologies that overlap. In an economic development context, the idea of convergence suggests that the traditional economic sectors are starting to overlap in areas that are producing new economic opportunities and “clusters” of economic activities. By concentrating on the areas of overlap between traditional economic strengths, and supporting the development of these new clusters of activity, communities are beginning to diversify their economies away from potentially struggling sectors to new areas of economic opportunity, where local strengths may create opportunities that other communities may not be able to compete with. Due to Prescott-Russell‟s strengths in a number of economic sectors like manufacturing, agriculture, tourism, recreation, culture, and transportation and warehousing, there are two unique areas of convergence where Prescott-Russell is poised to compete.

As well, in the knowledge-based or creative economy, a community‟s most valuable assets are often considered the creative people and businesses that call that area home. It is the support for both those talented people and high-value innovative and agile companies that can create a number of new economic opportunities for a community. For that reason, many communities are now shifting their focus away larger multinational firms to entrepreneurs and small to medium sized enterprises; shaping economic development services to grow investment from the local business community, and attract the most innovative entrepreneurs and small businesses.

Further, the type of collaborations and partnerships that are undertaken can also be considered assets for a community in uncovering new economic opportunities. Partnerships that enhance the local talent base, introduce new and innovative business processes, and provide resources in support of entrepreneurs and small businesses have impacts on the level of economic opportunity available in a community. In an area with limited post-secondary and training opportunities, the need for partnerships and collaboration is further highlighted as a means of improving accessibility to those training opportunities.

Objective 1.1 Investigate the feasibility of new regional organizations/committees to lead implementation of various areas of the strategy

All communities differ in their geographic, political, or economic strengths and weaknesses, and thus have a different set of challenges in improving community well-being. Achieving this goal requires the various organizations with an inherent understanding of those challenges to work together to produce the right balance of skills and experiences that can move the strategy forwards. This

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is especially true given the diverse number of areas where economic opportunity may present itself in the knowledge-based economy, such as new niche areas of traditional sectors.

For that reason, tasks from the economic development strategic plan may be delegated to organizations or committees that have a better understanding of where the opportunities may be present, rather than the economic development organization being solely responsible for implementation. Actions can instead be implemented by the organization best positioned to move the action forwards. In some cases, this may be an existing organization or agency, such as a department from a higher level of government or a not-for- profit corporation. In other cases, this may be a new organization that is better able to leverage the existing skills and resources of several smaller organizations, such as a regional chamber of commerce that consolidates the smaller local chambers of commerce.

The latter approach has the advantage of increasing the coordination of organizations across the area towards a common goal. Where various organizations may be focused on the same goal, but looking to achieve it by different means, a larger over-arching organization may be useful to reduce overlap or contradictory activity. The economic development organization may be able to offer some assistance, given the challenges associated with creating new organizations that consolidate or overlook activities of more fractured local organizations. Assistance might include an inventory or mapping of the organizations in an area, the facilitation of public meeting or focus groups, as well as the detailed research into the feasibility of such organizations. Regardless of whether the organization that is delegated the responsibility is existing or new, it is the ultimate responsibility of the leading economic development organization to monitor the implementation of the strategy and delegate responsibilities.

Objective 1.1 Investigate the feasibility of new regional organizations/committees to lead implementation of various areas of the strategy Potential Performance Required Actions Lead Priority Resources Partners Measures 1.1.1 Undertake an inventory of regional organizations (public, private, NGO, not-for-profit), government offices/representatives, and PREDT PRCDC 5 E businesses with an influence on Prescott-Russell‟s core areas of economic opportunity 1.1.2 Undertake an environmental review of lead economic development and related organizations in order to determine best practices on PREDT PRCDC 4 B organizational structure, administrative duties, and funding opportunities 1.1.3 Facilitate a public meeting to assess the potential for collaboration among these organizations on a project-specific or ongoing basis PREDT PRCDC 3 A under the new economic development strategic plan

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1.1.4 Building on the results of the analysis, complete detailed feasibility reports on the development of new economic development and related organizations such as: a. A regional chamber of commerce b. A regional agrifood network c. Regional organizations focused on each convergence area PREDT PRCDC 2 C d. A regional advanced manufacturing network e. A river/waterfront development corporation f. A regional tourism network g. A Prescott-Russell Business Ambassador investment attraction program

Objective 1.2 Focus external investment attraction efforts on the activities in the convergence between agriculture, manufacturing, and transportation and logistics

Agriculture is a vital component to the economy of Prescott-Russell. This report has identified that the concentration of jobs in agriculture in Prescott-Russell is considerably higher than the provincial average and that agriculture and food ranked highly in importance in survey responses. Yet the industry is in decline.

The survival of agriculture is highly dependent on the industry‟s ability to be competitive. It is vital that support is given to creative entrepreneurs and diversification efforts in agriculture. Where the sector is subject to volatile production, demand, and price, producers must innovate to remain profitable and maintain their role in the community. At the same time, there are opportunities to innovate by connecting with other areas of the economy. Manufacturing exhibits similar challenges and opportunities.

Transportation equipment manufacturing remains a mainstay of the Ontario economy and as this industry pursues bio-alternatives to production inputs, the role of agriculture as input feedstock for composite materials will increase. In addition, Ontario is home to North America‟s third largest food processing cluster, and the creative food economy is growing – rapidly.

Ontario‟s transportation sector has shown steady growth over the last decade and is closely tied to the manufacturing sector. Prescott-Russell is ideally located between Montreal and Ottawa, which is an asset for the development of both industries. Due to strengths in the three component sectors, and despite the challenges that each faces, Prescott-Russell is well positioned to support activity at the convergence of agriculture, manufacturing, and transportation and warehousing.

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Objective 1.2 Focus external investment attraction efforts on the activities in the convergence between agriculture, manufacturing, and transportation and logistics Potential Performance Required Actions Lead Priority Resources Partners Measures 1.2.1 Connect local agriculture and transportation equipment PRCDC, producers with external companies and industry research OMAFRA, to facilitate opportunities for production of appropriate UCFO, OFA, feedstocks for biomanufacturing applications PREDT Réseau 3 B Acres Agroalimentaire devoted to de L‟Est feedstocks ontarien, UCPR for bio- 1.2.2 Research and establish an inventory of land, resources, PREDT in applications OMAFRA, and information for grape growing in Prescott-Russell association Grape Growers with Number of of Ontario, Association 1- PREDT new UCFO, OFA, des B companies in Réseau Viticulteurs 4- AVEO the Agroalimentaire de l‟Est convergence de L‟Est ontarien area ontarien, UCPR (AVEO) 1.2.3 Building on work that has previously been done, complete OMAFRA, Level of new a market study for processed soya, identifying value-added OAC, University investment in opportunities for local producers of Guelph, the UCFO, OFA, convergence PREDT 4 D Réseau area Agroalimentaire de L‟Est Businesses ontarien, UCPR undertaking 1.2.4 Target value-added food processing operations that can Local food value-added 1 - PREDT build on the existing agricultural (dairy, livestock, crops) PREDT, processing soy pilot

and processing (baking, slaughter, fermentation) strengths delegated companies, projects 4 - new D to access new niche food areas (especially in the Ottawa to new food Ontario food and Montreal markets), such as: organization Agricultural organization a. Foods for export to foreign markets College (OAC),

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b. Foods to address dietary-restrictions UCFO, OFA, c. Foods to serve a growing ethnically diverse Canadian Réseau population Agroalimentaire d. Certified organics de L‟Est ontarien, UCPR 1.2.5 Work with agricultural organizations to offer assistance to OMAFRA, local producers with the challenges threatening the OAC, UCFO, sustainability of the industry like succession planning, OFA, Réseau rising costs, productivity gains, and increased government Agroalimentaire regulations de L‟Est PREDT ontarien, 3 D UCPR, Prescott- Russell Enterprise Centre 1.2.6 Target investment attraction efforts at: a. transportation and warehousing firms serving the Ottawa, PRCDC, HIIA, Montreal, and Eastern Canada markets MEDT, FedDev PREDT 4 D b. transportation and warehousing firms specializing in Ontario, transportation of agricultural goods, produce, and finished OMAFRA food products (i.e. refrigerated carriers/warehouses)

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Objective 1.3 Establish Prescott-Russell as a green region and centre of research and development for bio-applications in manufacturing, transportation, and energy

Prescott-Russell is home to Ontario Agricultural College‟s Campus D‟Alfred, an established research facility that is part of the University of Guelph. The University of Guelph is already a leader in Ontario and Canada with respect to research in bio-applications and is a member of Ontario‟s bio-auto initiative. In addition, Prescott-Russell‟s agricultural strength is in dairy production, an industry of significant interest in an era when research facilities in other countries are making breakthroughs in the extraction of milk protein to produce resins. More importantly, milk protein may be a viable option in bio-applications, as the protein can be extracted without removing the milk itself from the human food chain. This addresses some of the fundamental arguments against biomaterial development with food crops.

Prescott-Russell is also home to other manufacturing facilities and companies that are innovative leaders in their field, such as IKO and DART Aerospace. The aerospace industry, much more than the automotive industry, strives for product improvement and efficiencies in components and parts. The implementation of bio-alternatives in this industry has been slower than in the automotive industry due to the significantly higher demands placed on the input goods. Roofing products are also shifting to green alternatives in order to capture a growing environmental market.

Climate change has become one of the most heated topics in international debates. As nations the world over seek ways to reduce their carbon emissions, it is communities and individuals that are leading the way in this goal. However, many green energy solutions are also offering economic benefits at the farm-scale that should not be ignored, especially considering the challenges within which agricultural producers operate. With a large capacity of available biomass materials, particularly provided by agricultural activities, Prescott-Russell has the potential to either become a green power producer, or a likely site for pilot projects based on new biogas energy generation processes. At the very least, an emphasis on development in this area can assist local farmers in accessing new opportunities to diversify their business activities.

Objective 1.3 Establish Prescott-Russell as a “green” region and centre of research and development for bio-applications in manufacturing, transportation, and energy Performance Required Actions Lead Potential Partners Priority Resources Measures 1.3.1 Promote the research and achievements of Campus OAC, University of D‟Alfred and the University of Guelph in organic milk Guelph, UCFO, OFA, Number of PREDT 3 C and maple syrup Réseau structural a. Initiate discussions with Campus D‟Alfred and the Agroalimentaire de biomaterials

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University of Guelph, about collaborations with potential L‟Est ontarien research partners like the University of Waikato (NZ), to establish projects a milk protein research facility in Prescott-Russell. 1.3.2 Strengthen the existing business and physical Number of infrastructure in Prescott-Russell to support an farm-level industrial cluster of green manufacturing bioenergy OCE, NRC, Local a. Prepare an inventory of all industry and manufacturing 3 projects Industry, Ontario East, operations in Prescott-Russell with potential to act as HIIA, EMC, EOMN, research and development partners in green technology PREDT 4 – Grid E Hawkesbury Hydro, development. Local examples include IKO and DART capacity HydroOne, Embrun Aerospace. analysis Hydro, Ottawa Hydro b. Work with Hydro organizations to determine where grid capacities present the best opportunities for independent power producers 1.3.3 Become a testing ground and Centre of Excellence for HydroOne, Local more efficient anaerobic digesters and generators, PREDT hydro producers, 3 D increasing the capacity to generate power by attracting OMAFRA research projects to the region 1.3.4 Hold a forum on independent power generation, Hawkesbury sponsored by HydroOne, to inform residents and Hydro, PREDT, PRCDC, farmers about feed in tariffs, power generation, and HydroOne, 2 B other “green” energy projects Local Municipalities, a. Provide incentives for additional farmers to implement Embrun bio-gas options on their farms Hydro 1.3.5 Investigate the feasibility of a community-level bio-gas UCPR electricity generation project, and other community-level Public HydroOne, OMAFRA 2 D green energy projects Works 1.3.6 Attract funding from provincial and federal sources for OPA, OMAFRA, the bio-gas electrical initiative PREDT FedDev Ontario, 2 C PRCDC

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Objective 1.4 Develop an incubation program focused on activities in the convergence areas between agriculture, manufacturing, and transportation

The majority of business establishments in Prescott-Russell are in the indeterminate category – businesses without employees. Supporting and nurturing these entrepreneurs is an important role played by economic development agencies as it is estimated that up to 10% of job creation in a community can come from entrepreneurial activities. Agriculture, as an industry, has the second highest number of business establishments in Prescott-Russell with 649 establishments, 444 of which are indeterminate.

It has already been stated that supporting entrepreneurs and diversification efforts in this industry is vital to its survival as an employer. Manufacturing and transportation and logistics also show high numbers of indeterminate businesses and entrepreneurial activities. These businesses, however, can be challenged by lack of human and financial resources to grow and prosper. Incubation programs have become popular mechanisms across the country for growing small business by offering specialized in-house business support, marketing, and possibly financing support.

Objective 1.4 Develop an incubation program focused on activities in the convergence areas between agriculture, manufacturing, and transportation Performance Required Actions Lead Potential Partners Priority Resources Measures 1.4.1 Convene an industry forum of businesses within the Chambers of Number of agriculture, manufacturing, and transportation sectors to Commerce, Business “toolkit” users present the vision for Prescott-Russell, and develop an Network International understanding of their needs to implement that vision PREDT (BNI) East, UCPR, 4 A Capital Réseau distributed or Agroalimentaire de awarded to l‟Est ontarien firms in the 1.4.2 Based on the results of the consultations, develop a PREDT, PRCDC, convergence specialized “toolkit” of resources for small businesses and Chambers of area start-ups in the target sectors Prescott- Commerce, Business a. Establish a clearly identified “champion” organization, Russell Network International Number of such as the Prescott-Russell Enterprise Centre, as the 3 C first point of contact for assistance Enterprise (BNI) East, UCPR, new business b. Develop specialized resources to be distributed through Centre Réseau courses that champion consisting of print and electronic Agroalimentaire de delivered resources, workshops, training sessions, and networking l‟Est ontarien locally

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opportunities focused on the convergence area c. Leverage partnerships with other business organizations Number of (i.e. Chamber of Commerce) to distribute information to university- their membership assisted 1.4.3 Develop small business programs with local financial PREDT, Prescott- business agencies and venture capitalists building on the strong Russell Enterprise projects tradition of co-ops and social capital in Prescott-Russell Centre, Chambers of undertaken Commerce, Business PRCDC Network International 3 C (BNI) East, UCPR, Réseau Agroalimentaire de l‟Est ontarien 1.4.4 Initiate conversations with post-secondary institutions in PRCDC, Prescott- the region, and Ottawa and Montreal to further develop Russell Enterprise small-business courses that can be delivered locally in Centre, Chambers of both languages, focused on business start-up and Commerce, Business operation in the convergence area between agriculture, PREDT Network International 3 B manufacturing, and transportation (BNI) East, UCPR, Réseau Agroalimentaire de l‟Est ontarien 1.4.5 Investigate business assistance services offered through PRCDC, Prescott- regional English and French school boards and post- Russell Enterprise secondary institutions, and coordinate local business Centre, Chambers of participation in these programs. Examples at the post- Commerce, Business secondary level include: Network International PREDT 3 A a. the Management Consulting Project in the Telfer School (BNI) East, UCPR, of Management‟s MBA program (University of Ottawa) Réseau b. the Small Business Consulting Bureau at the John Agroalimentaire de Molson School of Business (Concordia University) l‟Est ontarien, local school boards

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Objective 1.5 Develop and enhance the Business Retention and Expansion activities in Prescott-Russell

The report has delved into agriculture, manufacturing, and transportation and logistics as target industries for Prescott-Russell. Additionally, the report has noted the potential for development within tourism, recreation, and culture. Further, it is suggested that the real competitive advantages for the United Counties lie in the areas where activities in these industry sectors begin to converge, especially as each sector converges with agriculture.

It is these firms that should be targeted to understand the challenges and opportunities they face in order to develop further programming to ensure their growth and prosperity. Targeting these existing businesses is crucial for economic development as, by some accounts, 75% of employment growth will be generated by existing businesses. The convergence areas provide Prescott- Russell with a way to focus the BR+E activities, given that there are more than 5,000 business establishments present in the area. There are already excellent practices to follow with respect to BR+E in Ontario.

However, BR+E programs are not new to Prescott-Russell. The OMAFRA BR+E program has been undertaken in the region previously. But in a time where inward investment is accounting for a larger and larger portion of new job creation, a focused and enhanced BR+E initiative is needed. In recent years, software and technology-based tools for BR+E have emerged with the goal of solidifying existing investment, identifying new investment and market opportunities, and gathering intelligence that can assist both existing and potential businesses. The best BR+E programs are supported by these sophisticated software tools, developed based on years of “best practice” research, and capable of aggregating results in order to uncover key trends and patterns within local business experience. The “Synchronist Business Information System” software tool developed by the US-based firm Blane Canada Ltd. is particularly effective, and has been successfully implemented in Ontario communities including Hamilton and Burlington. Prescott-Russell should investigate these new technology-based tools and revive the business retention and expansion efforts in the region, targeting the new areas noted in this report.

Further, weaknesses were identified with regards to regional cohesiveness and coordinated approaches to development across the Counties. This presents potential difficulties for businesses or investors that may be dealing with multiple jurisdictions across the counties to undertake a project. Having a dedicated team of individuals representing all of the municipalities across an area, bound by a defined scope and strategic direction, focused on resolving these issues and finding innovative solutions to facilitate new investments, provides a structural and perceptual bonus for an area. First, these individuals tap into the experience of a wider range of people to solve problems, and have access to officials from adjacent areas to resolve inter-jurisdictional issues. Second, this “team” of individuals represents a commitment from the area to resolve issues as they arise and an attempt to coordinate efforts across political boundaries. This counters perceptions of a lack of coordination or cohesiveness.

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Objective 1.5 Develop and enhance the Business Retention and Expansion activities in Prescott-Russell with technology-based approaches Potential Performance Required Actions Lead Priority Resources Partners Measures 1.5.1 Investigate the use of sophisticated BR+E tools to undertake a more PRCDC, focused and comprehensive BR+E program (i.e. Synchronist Chambers of Software) PREDT Commerce, 4 C a. Develop a general set of business visitation protocols and programs that can be used by any and all municipal economic development OMAFRA, offices and personnel across Prescott-Russell MEDT, UCPR 1.5.2 Target Prescott-Russell‟s sweet spots or areas of convergence, as well as firms within the pyramid of support for each convergence PRCDC, area, in BR+E activities Number of Chambers of a. Undertake detailed inventories of companies within the convergence company PREDT Commerce, 4 C areas and firms within the pyramid of support BR+E OMAFRA, b. Develop a convergence and support sector business retention and visitations MEDT, UCPR expansion strategy focused on achieving a standard of 20 business visits per year in each convergence sector Number of 1.5.3 Develop a regional Quick Response Team composed of key issues Municipal and Counties-level economic development, planning, resolved by zoning, and public works staff to respond to issues as they are the Quick PRCDC, uncovered through the BR+E process, with an emphasis on Response UCPR, Local providing assistance to businesses and investors anywhere across Team Municipalities, Prescott-Russell PREDT Chambers of 4 B a. Create an on-going monthly roundtable composed of the quick Commerce, response team and additional Counties and Municipal staff to update OMAFRA, on progress, and discuss issues and opportunities MEDT, UCPR b. Select a key set of business and community leaders from the Counties and other levels of government (OMAFRA, MEDT, etc.) to attend the monthly roundtable discussions on a quarterly basis

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Objective 1.6 Identify education and training opportunities in an effort to increase the education and skill levels of the local population

There has recently been considerable attention paid to the knowledge or creative economy as the future for employment and income growth. Many industries, including manufacturing, logistics, and agriculture are becoming increasingly less routine and more technical as new technologies are implemented to make processes and businesses more efficient. Further, population-related industries, such as accommodation and tourism, are requiring new skills to serve an ever changing market.

Advanced manufacturing, including the implementation and incorporation of new tools and technologies, is understood to be the path for the survival of manufacturing in the developed world. Logistics operations are increasingly centralized and employing a more technically skilled labour force. While Prescott-Russell performs well in the percentage of the population holding apprenticeship and trades certificates, it has been noted that the education levels are markedly lower than the provincial average. Stakeholder interviews with entrepreneurs in the area raised the issue of the challenge of finding skilled workers in Prescott-Russell, so there is a need to identify the current educational gaps existing in Prescott-Russell with a view to establishing linkages to institutions and organizations that can assist with increasing the educational attainment level within the region. Ultimately, the objective is to strengthen the current area of competitive weakness that seems to be affecting many sectors of the local economy, namely a gap between skills demanded and skills available, and a lack of opportunity to resolve that issue locally.

Objective 1.6 Identify education and training opportunities in an effort to increase the education and skill levels of the local population Performance Required Actions Lead Potential Partners Priority Resources Measures 1.6.1 Undertake a study to identify the current gaps in skills Eastern Ontario Participants and occupations in Prescott-Russell which will be key to Training Board enrolled in development of the convergence areas and the (EOTB), Chambers training component sectors PREDT 4 D of Commerce, programs OMAFRA, MEDT, UCPR New 1.6.2 Collaborate with local business and local educational specialized organizations and institutions to develop and source EOTB, Local training specialized training programs that respond to those businesses, local programs existing training gaps and future skills needs PREDT 4 D school boards, OAC, delivered a. Focus first on component sectors (i.e. manufacturing, tourism), then focus programs on convergence sector OTEC locally b. Undertake a marketing campaign to promote skill

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development and opportunities within the convergence New skill areas providers in 1.6.3 Highlight and market opportunities for additional training EOTB, Chambers of the area providers to offer programs in Prescott-Russell within Commerce, PREDT 4 B educational and skill “gap” areas OMAFRA, MEDT, UCPR

Objective 1.7 Undertake activities focused on building the creative rural economy in Prescott-Russell with the priorities of promoting connectivity and collaboration, and attracting and retaining creative workers

Eastern Ontario is actively pursuing the development of a rural creative economy. The Ontario East Economic Development Commission (OEEDC) has defined creative economies as a target sector and committed to working with the province and its partner communities on developing a creative rural economy in Eastern Ontario. The goal is to undertake higher-level strategic actions to build a framework on which the creative rural economy can be built. At the basic level, the development of this framework requires actions in four broad categories:

 Coordination of stakeholders

 Enhanced networking and building an environment of creativity

 Nurturing creative enterprises and people

 Marketing and place branding

With current strengths in some technical creative industries (business consulting, computer systems, engineering and design) and emerging strengths in cultural creative industries (design, photography, and advertising), Prescott-Russell has a good business base on which to grow the rural creative economy. Additionally, the existing cultural events calendar and the unique rural environments and natural heritage features of the region combine to create a quality of place that is difficult for competitors to match.

But the Region faces a number of barriers – business networking and connectivity, digital connectivity, more extensive post- secondary programming, and sector-specific business development support. Notwithstanding this, Prescott-Russell has the advantage of being part of the OEEDC, and organization taking specific action on developing a regional creative economy based on the specific strengths of each of its areas.

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Objective 1.7 Undertake activities focused on building the creative rural economy in Prescott-Russell with the priorities of promoting connectivity and collaboration, and attracting and retaining creative workers Potential Performance Required Actions Lead Priority Resources Partners Measures 1.7.1 Engage in activities focused on supporting and growing Prescott- Russell‟s creative economy a. Engage the Ontario East Economic Development Commission in Creative and creative communities target sector work. cultural b. Use OMAFRA‟s analytical tools to undertake a detailed summit PRCDC, assessment of the creative economy and the creative class in attendees OEEDC, Prescott-Russell UCPR, c. Position the United Counties within an area that complements the Operational PREDT MEDT, 4 D development of Eastern Ontario‟s regional creative economy, dollars FedDev, rather than competes with it. devoted to Ministry of d. Engage higher levels of government within this regional structure to social Culture promote projects that will assist the area, i.e. expansion of rural media/virtual broadband initiatives e. Apply for the Creative Communities Prosperity Fund (CCPF) during the 2011 program Number of staff-led 1.7.2 Under the guidance of, and in partnership with OEEDC, undertake Prescott- discussions a survey of creative industry workers in Prescott-Russell at two- Russell or posts year intervals to understand their motivations for locating in the Enterprise region Centre, Number of PREDT 3 B a. Review and revise regional marketing materials to be compatible PRCDC, online with the findings of these surveys OEEDC, participants – UCPR, followers, FedDev friends, 1.7.3 Facilitate a semi-regular creative and cultural industries UCPR, Local connections, (agritourism, arts, culture, recreation, hospitality, and tourism PREDT municipalities, 3 B etc. sectors) summit to encourage networking between local local

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businesses and across value chains, with an ultimate goal of business, Number of promoting project-or problem-based collaboration Trillium business a. Apply for external sources of funding to assist with this initiative Foundation, connections (i.e. CCPF) OAC, facilitated Heritage Canada Foundation, Chambers of Commerce, MEDT, FedDev 1.7.4 Investigate the use of new Social Media and Web 2.0 tools on Prescott-Russell‟s website to engage in online communities and discussions in support of business and creative economy UCPR, development, and to facilitate connections between businesses and PRCDC, PREDT 4 C post-secondary and research resources via discussion forums FedDev a. Create a dedicated web portal employing Social Media and Web Ontario 2.0 tools to build collaboration and connectivity throughout Prescott-Russell‟s creative community

Objective 1.8 Develop a creative and cultural industries incubation program supporting small tourism, cultural, hospitality, and arts sector businesses and events

Prescott-Russell currently has a range of service delivery agents that can assist with small business and entrepreneurial development, including the Prescott-Russell Community Development Corporation, Prescott-Russell Economic Development and Tourism, and the Prescott-Russell Business Centre. Though the services play a major role in the development of SMEs and entrepreneurs in Prescott-Russell, there is an opportunity to further enhance these programs to be more specific to the needs of more creative and cultural industries.

Some creative or cultural industry entrepreneurs, like independent artists, performers, chefs, and other cultural workers may not recognize themselves as business people and can struggle to make their efforts financially sustaining and viable especially in early stages of start-up and operation. However, these workers and industries are vital to the development of Prescott-Russell as a unique destination and excellent place to live. The idea behind the incubation of cultural industries is to help these individuals develop as

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small business operators and improve opportunities for cultural entrepreneurs to manage, develop, and grow their creative enterprises. This has the dual effect of strengthening the local economy while simultaneously strengthening the local quality of place.

In some communities, what is often called a “Cultural Enterprise” initiative takes the form of an annual training conference and workshop, coordinated by the local Small Business Enterprise Centre (SBEC) and economic development agencies. Due to the importance of creative and cultural industries, which includes businesses with an influence on tourism, recreation, and hospitality, Prescott-Russell should look to make the incubation of these small businesses an ongoing program. This includes the development of programs, workshops, resources, training sessions, and support tools, but also the development of more sustainable resources offered through post-secondary institutions for local delivery.

Objective 1.8 Develop a creative and cultural industries incubation program supporting small tourism, cultural, hospitality, and arts sector businesses and events Performance Required Actions Lead Potential Partners Timing Resources Measures 1.8.1 Undertake a detailed inventory and cultural mapping Number of exercise to determine all businesses, events, and “toolkit” users organizations within the sector Chambers of PREDT 4 D a. Undertake a cultural policy strategic planning session to Commerce, UCPR Number of determine the vision for Prescott-Russell‟s tourism, business cultural, hospitality, and arts sectors courses 1.8.2 Convene an industry forum of players within the tourism, Chambers of delivered cultural, hospitality, and business sectors to present the Commerce, locally vision for Prescott-Russell, and develop an Business Network

understanding of their needs to implement that vision PREDT International (BNI) 4 B Number of East, Prescott- university- Russell Enterprise assisted Centre business 1.8.3 Based on results of the forum, and refined on an projects ongoing basis through business retention and Prescott- REDT, PRCDC, undertaken expansion activities, develop a specialized “toolkit” of Russell chambers of 4 C resources for small creative and tourism businesses, Enterprise commerce Number of consisting of print and electronic resources, workshops, Centre incubator training sessions, and networking opportunities

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1.8.4 Initiate conversations with post-secondary institutions clients and French and English school boards in the region, and in Ottawa and Montreal to further develop small- PREDT PRCDC, MTCU 3 A business courses that can be delivered locally in both languages 1.8.5 Investigate opportunities for local delivery of educational programming and skills training virtually or through satellite campuses, focused on quality management techniques, customer service, and business development for small business operators a. Target post-secondary institutions in Eastern Ontario, including the University of Ottawa, Carleton University, PREDT EOTB, MTCU 4 B La Cite Collegiale, Algonquin College, St. Lawrence College b. Target institutions with connections to Eastern Ontario and Prescott-Russell, including the University of Guelph c. Target leaders in tourism training like OTEC, focused on developing customer service training 1.8.6 Investigate the feasibility of a small business „incubator‟ PRCDC, Ontario focused on developing the cultural creative community, Craft Brewers delivered virtually. (OCB), Grape a. Over the longer term, should a physical facility be Growers of Ontario, warranted, give consideration to shared infrastructure PREDT Hawkesbury 3 D for the development of local wine and brewing Industrial Investment industries, such as a scale-up or pilot facility, and local Association, creative food products. Prescott-Russell Enterprise Centre

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Goal Two

Create an Unparalleled Quality of Place and Remarkable Visitor Experiences

Even as technology and communications seem to make proximity and location less relevant, “place” remains a defining factor in the success of a local economy. Economic development research indicates that place has a significant impact on economic prospects. From a business perspective, high quality of place amenities have been shown to be vital for the attraction of skilled and talented people, and can suggest areas that may be preferable to start or move a business venture. Skilled workers will seek out the places that match their values and needs, and new economic development trends are illustrating that businesses will follow them.

Quality of place is a broad term encompassing a number of factors. Often interchangeably used with the term “quality of life”, the term generally refers to the collection of assets and infrastructure that influence a person‟s wellbeing. This could include anything from natural and cultural heritage, to public transit, nightlife and restaurants, arts and cultural venues and festivals, hospitals, schools, and social services. The challenge is to ensure that this set of amenities and infrastructure is at a high quality that can appeal to a range of demographic groups.

As a unique rural area, complete with natural heritage advantages like the Larose Forest and Ottawa River that define the area, and a strong cultural history, Prescott-Russell‟s quality of place is routinely noted as an advantage for potential residents and visitors. The challenge is enhancing that natural quality of place advantage, given budgetary constraints and limited influence over many of the contributors to quality of place, such as private businesses. Communities like Prescott-Russell must create a receptive environment where the private sector can invest in quality of place, and work to attract external investment while cultivating internal investment. In doing so, the community improves its value proposition for new skilled residents and innovative businesses looking for those workers.

At the same time, the global tourism market is changing, also increasingly emphasizing quality of place. New destinations are opening up, and increasingly, many of the experiences that Canada can offer are being matched or bettered by lower cost or more exotic destinations. Canada, like other traditional tourist destinations, is losing market share of global tourists as a result. In addition, domestic competition for tourists remains strong, as many destinations in Canada and Ontario offer very similar tourism “products”. Further, domestic tourism and global tourism have been affected by the volatility in the economy, changing the behaviour of tourists

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and affecting location choices, trip frequency, and travel spending. Many tourists are looking to maximize the benefits of their vacation spending, and want to ensure that limited resources and time are exchanged for a truly unique trip.

This has highlighted the need for a new orientation in destination development and marketing – one that focuses on creating infrastructure that capitalizes better on existing assets to provide truly unique and fundamentally different experiences. Like the rest of Ontario, Prescott-Russell is faced with the challenge of reinventing itself to meet a new and dynamic tourist market. While the area has many of the ingredients that might suggest strength in tourism, challenges related to weaknesses in product packaging, accommodation, and regional connectivity remain. However, as an area with natural and cultural heritage, strong agricultural roots, and new large investments, the region appears poised for significant growth in a number of new tourism sectors with proper destination development.

Objective 2.1 Reorganize the tourism development structure and activities to better recognize the sector‟s influence on other sectors of the local economy and quality of place

The tourism marketing and destination development landscape is changing in Ontario. Where destination marketing and development once fell to individual municipalities, the new Regional Tourism Organizations (RTOs) group those functions into a more regional structure to achieve a more coordinated and less parochial approach to tourism marketing. As such, less of the marketing responsibility will fall on Prescott-Russell Economic Development and Tourism and other community partners, freeing more resources for destination development activities.

Despite the existing structure in place, Prescott-Russell lacks a specific tourism advisory organization to interact with the RTO on destination marketing activities. Public consultations suggested that the most preferable structure for such an organization would be a joint committee of public and private representation. This committee would then be able to support the interests of Prescott-Russell when engaging with the RTO.

This also allows for a shift in focus of the local tourism marketing and destination development activities. With much of the marketing being done by the RTO, this leaves the Prescott-Russell CDC, PREDT and other industry and community partners are free to focus on the development of new and engaging local attractions. A primary focus should be on convening the local industries with an influence on destination development on a regular basis to ensure that problems and opportunities are addressed as they are identified. Based on the agricultural strengths of Prescott-Russell, local agricultural operators should be encouraged to attend in order to promote and encourage further development of agritourism attractions and accommodations.

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Objective 2.1 Reorganize the tourism development structure and activities to better recognize the sector‟s influence on other sectors of the local economy and quality of place Potential Performance Required Actions Lead Priority Resources Partners Measures 2.1.1 Replace the existing Prescott-Russell Tourism Association with the Prescott-Russell Regional Tourism Network (PRRTN) as Local business, outlined in section 2.8.2 by: Chambers of a. Creating a volunteer public/private Board of Directors PREDT Commerce, 5 C b. Establishing the Tourism Network‟s Pillars of Growth PRCDC, UCPR, c. Defining the scope of the Tourism Network‟s subcommittees OTEC d. Defining membership in the Tourism Network‟s subcommittees

2.1.2 In partnership with the new Prescott-Russell Regional Tourism Number of Network, undertake a tourism strategic planning process focused forum on destination development that considers the opportunities attendees outlined throughout the economic development strategy, Local Business, especially: Number of Chambers of a. Growth in French language tourists PREDT, new tourism Commerce, 5 D b. Positive momentum in hospitality, restaurants, and drinking PRRTN products PRCDC, UCPR, places OTEC, RTO c. The current shortage of accommodations Number of d. Untapped capacity for water-based activities and businesses that online serve the market participants e. Growth of agritourism and culinary tourism/events 2.1.3 Through the new Prescott-Russell Regional Tourism Network, PREDT, Local develop an aggressive marketing strategy to engage the RTO business, and ensure that up-to-date information about Prescott-Russell‟s Chambers of PRRTN 5 E tourism offerings is disseminated on a regular basis Commerce, a. Utilize Web 2.0 and Social Media tools to connect with the local UCPR, PRCDC, tourism community, and stay informed of local developments OTEC 2.1.4 Through the new Prescott-Russell Regional Tourism Network, PRRTN PREDT, RTO, Medium C

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convene a semi-annual forum on destination development, Chambers of bringing together representation from Prescott-Russell tourism Commerce, attractions to identify and resolve issues, and encourage UCPR, PRCDC, networking; OTEC, OFA, a. Through agricultural organizations, encourage membership from Réseau local farmers to promote agritourism opportunities Agroalimentaire b. Coordinate an inventory the events taking place throughout the de L‟Est region and establish partnerships to minimize ontarien duplication/competition of similar events or events on similar days

Objective 2.2 Build the capacity of the United Counties to attract and retain multi-day tourists

One of the major strategic disadvantages in the local economy, especially within the context of the tourism sector, is the lack of opportunity for multi-day tourist stays. Despite the number of tourist amenities in Prescott-Russell, tourism visitation is perceived to be well below capacity for multi-day tourist stays. Many residents and business people feel that even with the multi-day tourism generated by a number of events and festivals, much of the tourism in the Region is same-day trips, with tourists instead staying in either Ottawa or Montreal.

A number of potential obstacles to multi-day visits were identified, from lack of accommodations to lack of integration or packaging of the community‟s diverse assets. In light of new investments in the Region (Calypso Water Park) and the number of latent assets that could potentially be further leveraged for tourism or recreation uses (Larose Forest, Ottawa River), the accommodation issues may be a higher priority for action. Until accommodation develops to meet the increased demands generated by tourism drivers, opportunities are being missed to attract new revenue to the Region.

Though “branded” hotels may not be feasible in the short term, there are opportunities surrounding similar types of accommodation that offer similar experiences and levels of service, but are outside of internationally-recognized corporations. Prescott-Russell needs to support the case for this type of development (as well as alternative accommodation like campgrounds) by having a detailed understanding of the needs of the sector, and critical customer segment and volume numbers to back the business case.

In addition, Prescott-Russell should be developing more complete experiences that coordinate the diverse assets in thematic groupings. These experiences should be true to the defining qualities of Prescott-Russell, but leveraged into a more formal branding:

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agriculture, rural economy, and natural heritage. By creating packages or tourism routes, the Counties begin to generate a more compelling case for tourists to stay more than one day.

Objective 2.2 Build the capacity of the United Counties to attract and retain multi-day tourists Potential Performance Required Actions Lead Priority Resources Partners Measures 2.2.1 Work with industry to understand the needs of the accommodation sector, and create investment profiles directed towards several key types of accommodation RTO, PREDT, investment, including: MEDT, UCPR, PRRTN 4 C a. Bed and Breakfasts Chambers of Number of b. Hotels/Motels Commerce accommodations c. Campsites/RV Parks (rooms, sites, d. Farmstays etc.) 2.2.2 Undertake annual customer segmentation surveys at the Tourism Information Centres to determine motivations for RTO, PRCDC, Number of new travelling to Prescott-Russell, length of stay, accommodation MEDT, UCPR, tourism PRRTN 4 B types, and experiences in order to have information about the Chambers of packages tourist market “On Demand” for potential investors in the Commerce tourism, recreation, or cultural sectors Number of multi- 2.2.3 Undertake an inventory of all creative and cultural assets in day theme the region – a cultural mapping initiative – in order to better RTO, PREDT, package understand the potential packaging or synergies that could PRCDC, UCPR, participants occur between existing assets (Festivals, events, businesses, PRRTN Chambers of 4 D facilities, etc.) Commerce, Number of multi- a. Investigate external funds like the Creative Communities MEDT day tourism Prosperity Fund to support the initiative route 2.2.4 Facilitate discussions between operators in accommodation, RTO, PREDT, participants hospitality, and recreation to encourage discounts and special PRCDC, MEDT, PRRTN 4 A offers that encourage tourists to visit multiple attractions (i.e. UCPR, Chambers Stay and Play packages) of Commerce 2.2.5 Develop thematic tourism routes through the county based on RTO, PREDT, PRRTN 4 D existing strengths, such as the Ottawa River, local foods PRCDC, MEDT,

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(culinary tourism), natural heritage features (eco-tourism), UCPR, Chambers mode of travel (cycle, motorcycle, walking/hiking), or local of Commerce history 2.2.6 Develop tourism packages focused on different customer RTO, PREDT, segments based on available amenities – example themes PRCDC, MEDT, could include families (Calypso, Ottawa River), active (cycling, PRRTN 4 B UCPR, Chambers canoeing), retirees (local culture), „Stay-cationers‟, or of Commerce sportsmen (hunting, fishing)

Objective 2.3 Brand Prescott-Russell within the context of its agricultural strengths, natural heritage assets, and rural economy as a means of differentiating the region and its products and services from its competitors

Communities are now competing to be the best location for skilled workers and their families. A number of communities market high quality of life, good access to healthcare and schools, clean natural environments, and excellent recreational amenities as differentiating factors in an effort to attract new residents. However, these qualities are true of many communities, so that begs the question of whether sufficient differentiation is created at all.

In these competitive markets, communities should be focusing on branding the community as something fundamentally different from the competitors, not just “better” or “cleaner”. However, it is easier said than done.

Effective place branding requires a strategic approach to public relations as well as the realization that the formation and management of an image or brand for an area is an ongoing, interactive and community-wide process. Place branding is much more than the development of a logo, tagline or slogan. It requires brand identity with community-traction and buy-in, a strong steward that will ensure the place brand is communicated consistently on a long-term basis, and a commitment from stakeholders community- wide to stay engaged in the process and promote and deliver on the core messages of the brand.

Underlying marketing and branding principles is the network of individuals and organizations that can contribute to marketing and branding of a community, such as provincial, regional and local governments, chambers of commerce, regional marketing or tourism organizations, community development corporations, economic development agencies and departments, property developers, and universities and colleges as well as individual business and the local residents of the community. Given the number of potential

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influencers on a community‟s image, the critical element of marketing and branding success is the degree to which these numerous players coordinate and align their activities with the over-arching vision for the community.

In this regard, Prescott-Russell‟s rural and comparatively smaller communities are an advantage in themselves. Some skilled workers will value this type of environment over adjacent urban areas, while some skilled entrepreneurs will prefer Prescott-Russell‟s opportunities to run a different type of business. Prescott-Russell‟s final brand should, above all else, articulate these advantages. However, in keeping with the idea that many other communities are marketing the same advantages, Prescott-Russell should seek to build these advantages into a branding that is completely different from other rural areas, one that makes Prescott-Russell remarkable among its competitors. Perhaps one of the best opportunities to build on in a branding context is the Ottawa River, which has the potential to appeal to a wide variety of customer segments and a high level of existing name recognition.

Objective 2.3 Brand Prescott-Russell within the context of its agricultural strengths, natural heritage assets, and rural economy as a means of differentiating the region and its products and services from its competitors Performance Required Actions Lead Potential Partners Priority Resources Measures 2.3.1 Undertake a detailed analysis of the place branding of similar rural communities in Canada and around the OEEDC, PRRTN, world, with a goal of understanding the current PREDT 4 C UCPR, PRCDC competitive landscape, and the necessary directions to take in differentiating Prescott-Russell 2.3.2 Coordinate a brand development summit composed of Number of all the relevant stakeholders, such as tourism, arts, Prescott-Russell new “creative culture, local businesses, and public institutions, and Enterprise Centre, class” ensure that input is sought on the development of PRCDC, OEEDC, residents Prescott-Russell‟s place brand and the growth of pride PREDT PRRTN, Chambers of 4 C in the Region Commerce, Réseau Number of a. Reconvene the stakeholders on a regular basis to agroalimentaire de food expo ensure that experiences and products remain l‟Est ontarien participants consistent with the decided branding 2.3.3 In partnership with local agricultural organizations, OMAFRA, PRRTN, develop a unique “Made in Prescott-Russell” logo to be Réseau PREDT 4 C used on all locally produced organic foods, compatible agroalimentaire de with the Region‟s marketing efforts and materials, to l‟Est ontarien, UCPR,

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build awareness of the region MEDT, PRCDC, FedDev, local agricultural organizations 2.3.4 Host an annual food expo that brings together the assets currently represented in a number of different PREDT OMAFRA 3 C festivals and events 2.3.5 Building on creative economy work done through this strategy, undertake a campaign outlining the OEEDC, PRRTN, “Prescott-Russell Advantage” building the case for Réseau Prescott-Russell as an excellent place to live, visit, or agroalimentaire de do business, targeting (among others): l‟Est ontarien, UCPR, PREDT 3 D a. Internal and external “creative class” workforce (youth, MEDT, PRCDC, new graduates, knowledge-workers) FedDev, local b. French-speaking tourists agricultural c. Skilled trades-people organizations d. Tourists from Ottawa and Montreal

Objective 2.4 Enhance the built environment or physical infrastructure in Prescott-Russell in order to appeal to a wider range of visitors and potential or existing residents.

The built environment and physical infrastructure of a community plays a major role in quality of place, and thus the attraction of talent. Communities can do a number of things to enhance their built environments. Regulations need to be more accommodating of home-based small enterprises and alternative living and working arrangements (live-work units). Strategic plans need to be in place to give investors both an indication of the vision for an area, but also the confidence that the community is encouraging of development. For example, strategic plans along the waterfront or shoreline areas or regarding significant assets like the Alfred Bog or the Larose Forest may act as a driver for development, while also ensuring the longer-term sustainability of the asset.

The public sector often needs to take the first step in development, or become an active partner in development, to realize unique or progressive developments in the build environment. The Municipal Act does not allow communities to provide incentives, but it does allow communities to engage in partnerships with the private sector to undertake specific projects. So, communities must have well-

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established protocols to undertake these partnerships, and a „wish list” of projects to focus on through these partnerships if the opportunity arrives.

Strategic infrastructure like business incubators may also play a major role in developing businesses and amenities that contribute to the attraction of visitors and residents, as well as their inherent role in supporting business start-ups with shared infrastructure. Overall, enhancements in the built environment will have positive effects on quality of place, and tourism destination development.

Often partnerships between adjacent municipalities are needed to advance a specific project that will benefit the connectivity of the local area. Whether it is the expansion of an existing road, the introduction of transit-supportive infrastructure or other improvements to regional connective infrastructure, collaboration between adjacent municipalities is critical.

Objective 2.4 Enhance the built environment or physical infrastructure in Prescott-Russell in order to appeal to a wider range of visitors and potential or existing residents. Potential Performance Required Actions Lead Priority Resources Partners Measures 2.4.1 Develop strategic plans and visions around specific and significant assets aimed at overcoming barriers and determining appropriate/preferred developments, with UCPR, special reference to the following areas: Local Amount of PREDT, a. Improving access to Prescott-Russell‟s waterfront and Municipalities 4 D new FedDev, shoreline areas like the areas along the Ottawa River (Planning) investment in PRRTN b. Improving access to, while ensuring the protection of, strategic the Larose Forest area areas

2.4.2 Undertake feasibility studies regarding infrastructure PRRTN, Number of and special project opportunities noted through the UCPR, strategic economic consultations and regional analysis, such as: PRCDC, partnership a. Regional public transit Chambers of projects PREDT 4 E b. Larose Forest Conference and Corporate Retreat Commerce, undertaken Centre MEDT, c. Larose Forest Interpretation Centre FedDev, d. Shoreline infrastructure (marinas, parks, etc.) OMAFRA,

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e. Rural high-speed internet OEEDC f. Servicing opportunities for unserviced employment lands 2.4.3 Investigate the feasibility of innovative partnerships, Local including but not limited to public-private partnerships municipalities, (P3) to develop strategic infrastructure or special local projects in Prescott-Russell, such as a performing arts business, centre, an interpretive centre, a conference centre, PREDT PRCDC, 4 D corporate retreat, incubator, shared-kitchen, Chambers of accommodations, or other opportunities noted Commerce, previously MEDT, FedDev 2.4.4 Undertake a project to encourage the creation of Local policies and regulations that are supportive of creative Municipalities, economy development – live/work developments, PREDT, home-based businesses – while maintaining the rural Prescott- character and cultural heritage of the region and its UCPR Russell 4 D communities (Planning) Enterprise Centre, Chambers of Commerce, PRCDC 2.4.5 Create an up to date vacant commercial and industrial land and building inventory, consolidating information from the municipalities across the Counties a. Update the inventory on a quarterly basis and post the resulting maps/charts on UCPR Website, with a longer- UCPR Local 3 D term goal of integrating information into Prescott- (Planning) Municipalities Russell a la carte b. Produce a biannual report summarizing the inventory to be used as a marketing material for development opportunities across the Counties 2.4.6 Plan to proceed with the Environmental Assessment City of UCPR 4 E focused on the entire 22 km corridor. Ottawa,

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a. In consultation with the local and regional business Local community and higher levels of government, determine Municipalities potential benefits of the project for the City of Ottawa b. Discuss these benefits with the City of Ottawa, in an effort to obtain their assistance with an EA on the entire 22 km corridor c. Meet with higher levels of government to determine if there are funds available to assist the City of Ottawa and the United Counties of Prescott and Russell with the EA, any related studies, and any recommended improvements to the highway corridor

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