GOVERNANCE AND PRIORITIES COMMITTEE AGENDA

Monday, March 15, 2021 at 12:05 p.m.

Chair: Mayor R. Alty, Councillor N. Konge, Councillor S. Morgan, Councillor J. Morse, Councillor C. Mufandaedza, Councillor S. Payne, Councillor R. Silverio, Councillor S. Smith, and Councillor R. Williams.

On the advice of the Chief Public Health Officer concerning gatherings, the City of Yellowknife’s meetings will be accessible to the public via webcast. Any person wishing to speak to an item on the agenda is asked to email [email protected].

Item Description

1. Opening Statement: The City of Yellowknife acknowledges that we are located in Chief Drygeese territory. From time immemorial, it has been the traditional land of the Yellowknives Dene First Nation, and more recently, the homeland of the North Slave Métis. We respect the histories, languages, and cultures of First Nations, Metis, Inuit, and all First Peoples of Canada, whose presence continues to enrich our vibrant community.

2. Approval of the agenda.

3. Disclosure of pecuniary interest and the general nature thereof.

ANNEX A 4. A memorandum regarding whether to award the 2021 Paving Program construction contracts to ACE Enterprises Ltd. (Contract A) and NWT Construction Ltd. (Contract B).

ANNEX B 5. A memorandum regarding whether to adopt for information the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy. GOVERNANCE AND PRIORITIES COMMITTEE AGENDA March 15, 2021

Item No. Description

ANNEX C 6. A memorandum regarding whether to adopt the proposed Implementation Plan for recommendations in the City of Yellowknife Economic Development Strategy, 2020‐ 2024.

ANNEX D (For Information Only) 7. A memorandum regarding the Minutes of the Mayor Task Force on Economic Development meeting of March 4, 2021.

IN CAMERA

ANNEX E 8. A memorandum regarding whether to appoint members to serve on the 2021 City of Yellowknife Board of Revision.

9. Business arising from In Camera Session.

DM# Page 2

MEMORANDUM TO COMMITTEE

COMMITTEE: Governance and Priorities

DATE: March 15, 2021

DEPARTMENT: Public Works and Engineering

ISSUE: Whether to award the 2021 Paving Program construction contracts to ACE Enterprises Ltd. (Contract A) and NWT Construction Ltd. (Contract B).

RECOMMENDATION: That Council authorize the Mayor and City Administrator to enter into the following construction contracts for the 2021 Paving Program: 1) ACE Enterprises Ltd. for the 2021 Paving Program Contract A for the amount of $1,100,056.30 plus GST. 2) NWT Construction Ltd. for the 2021 Paving Program Contract B including all provisional work (School Draw Avenue) for the amount of $1,005,657.78 plus GST.

BACKGROUND: The 2021 Paving Program includes rehabilitation of five (5) streets, or approximately 1.3 kilometers of road. This includes upgrades for 54th Avenue which needs to have asphalt re‐established following the 2020 water and sewer construction. Improvements to Forrest Park will upgrade the street from a gravel surface to a paved surface complete with a concrete sidewalk. Upgrades to Con Road include installation of concrete curb and gutter and an asphalt multi‐use trail. School Draw Avenue and Moyle Drive will be rehabilitated to address failed road base structures. The work has been split into two contracts as follows:

2021 Paving Contract A  Con Road (Rycon Drive to Con Place)

2021 Paving Contract B  Forrest Park  School Draw Avenue (44th Street to 46th Street) ‐ PROVISIONAL  54th Avenue (49th Street to School Draw Avenue)  Moyle Drive (20‐meter Section)

Administration undertook Requests for Tenders for each contract. The closing dates for Contract A and Contract B were February 26, 2021 and March 3, 2021 respectively.

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COUNCIL POLICY / RESOLUTION OR GOAL: Council Goal #2 Delivering efficient and accountable government.

APPLICABLE LEGISLATION, BY‐LAWS, STUDIES, PLANS: Cities, Towns and Villages Act.

CONSIDERATIONS: Tendering All bids were received online via the City’s Bid Opportunities website. The new procurement tool requires that all mandatory documents be submitted including a 10% bid bond or certified cheque, a Consent of Surety, liability insurance and a Letter of Good Standing from the Workers’ Safety and Compensation Commission (WSCC).

There were two (2) tenders submitted for both Contracts A and B. Submitted pricing for each contract was as follows:

Table 1: Contract A – Tender Summary Total Costs Company (Excluding GST) ACE Enterprises Ltd. $1,100,056.30 NWT Construction Ltd. $1,163,600.91 Consultant Estimate $1,739,105.00

Table 2: Contract B – Tender Summary Total Costs Company (Excluding GST) NWT Construction Ltd. $1,005,657.78 ACE Enterprises Ltd. $1,095,920.25 Consultant Estimate $1,678,585.00

Stantec, the City’s Engineering Consultant for the 2021 Paving Program, reviewed the bids and recommends awarding Contract A to Ace Enterprises Ltd. and Contract B to NWT Construction Ltd.

Budget The Public Works & Engineering Department has reviewed the consultant’s bid analyses and the tenders, and recommends proceeding with award of the contracts, including the provisional work, to each of the recommended bidders.

Table 3 summarizes the submitted bids compared to the 2021 budget.

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Table 3: Budget Summary Item Cost 2021 Paving Contract A (ACE Enterprises Ltd.) $1,100,056.30 2021 Paving Contract B (NWT Construction Ltd.) $1,005,657.78 2021 Paving Eng. Services (Stantec) $270,949.06 2022 Paving Eng. Services (To Be Awarded) $465,000.00 Preliminary Work and Detailed Design (Estimate) Total Contract Amounts $2,841,663.14 2020 Paving Budget $2,500,000.00 2020 W&S Budget (54 Avenue Paving) $615,340.00 Total Budget Amounts $3,115,340.00

Project Balance $273,676.86

As shown in Table 3, there will be sufficient budget to complete the 2021 paving contracts as well as the preliminary engineering for the 2022 Paving Program. The remaining budget will be used for yard reconstruction and completion of the 2020 paving contracts for engineering and construction.

Public Works and Engineering has changed the timing of the Engineering contracts in order to receive class A estimates in time for the City’s budget process. Therefore, the preliminary and detailed design work for the 2022 paving program will be completed in 2021.

Asset Management and Public Safety The rehabilitation of roadways improves driving conditions thus creating a safer environment for the public. Some of the roads in question are suffering from structural problems that are advanced enough that the resulting potholing, rutting and cracking poses a safety concern for drivers.

ALTERNATIVES TO RECOMMENDATION: 1) The Council decline award of the 2021 Paving Program Contract A to Ace Enterprises Ltd. 2) The Council decline award of the 2021 Paving Program Contract B to NWT Construction Ltd.

RATIONALE: The annual paving program exists to rehabilitate city streets that are in poor physical condition, surface streets that have not yet been paved and re‐establish asphalt and concrete surfaces that were removed due to water and sewer construction. The surface works to be completed by the 2021 Paving Program Contracts A and B will enhance City infrastructure by providing safe and clean transportation routes connecting residents efficiently with the rest of their community.

ATTACHMENTS: N/A

Prepared: March 4, 2021 DMM/wn

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MEMORANDUM TO COMMITTEE

COMMITTEE: Governance and Priorities

DATE: March 15, 2021

DEPARTMENT: Economic Development & Strategy

ISSUE: Whether to adopt for information the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy.

RECOMMENDATION: That Council: 1. Adopt for information the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy and Technical Report; and 2. Direct Administration to draft a response to the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy and draft an implementation plan based on the Strategy and report back to Council.

BACKGROUND: In July 2019, Yellowknife City Council passed Motion #0178‐19 to participate in the First Nation‐ Municipal Community Economic Development Initiative (CEDI) from July 15, 2019 until March 31, 2021. The resolution for CEDI participation was, in part, for the City of Yellowknife (the City) and the Yellowknives Dene First Nation (YKDFN) to enter into a community‐to‐community relationship.

As part of the CEDI partnership and further to the MOU, the City and YKDFN agreed to engage MDB Insights and Dillon Consulting to develop a Joint Economic Development Strategy to identify key areas of collaboration to mutually strengthen the economic prosperity of the communities of Yellowknife, Ndilo and Dettah.

On March 5, 2021, the Yellowknives Dene First Nation Council approved the following resolutions:

Motion 2021‐03‐09‐004 To accept/adopt for information of the Joint Yellowknives Dene First Nation (YKDFN) and City of Yellowknife Economic Development Strategy as of March 9, 2021; and

GOVERNANCE AND PRIORITIES COMMITTEE Page 1 March 15, 2021 DM#642309 Motion 2021‐03‐09‐005 To direct Economic Development Officer and Portfolio Holder to provide a written response and implementation plan based on the joint strategy for further council to approve later

The City and YKDFN have formed a Joint Economic Development Strategy (JEDS) committee that will continue to meet for the purposes of developing an implementation plan together.

COUNCIL POLICY / RESOLUTION OR GOAL: 2019 – 2022 City of Yellowknife Strategic Plan Value – Reconciliation: The City is committed to reconciliation with Indigenous peoples

Council Goal #3: Ensuring a high quality of life for all, including future generations

Council Motion #0178‐19 That Council adopt the following resolution to participate in the First Nation‐Municipal Community Economic Development Initiative (CEDI):

RESOLUTION FOR CEDI PARTICIPATION July 15, 2019

WHEREAS the City of Yellowknife intends to improve intergovernmental relations with the Yellowknives Dene First Nation (YKDFN) and enter into a community‐to‐community relationship with Yellowknives Dene First Nation (YKDFN);

WHEREAS the City of Yellowknife commits the participation of the community in the First Nation – Municipal Community Economic Development Initiative (CEDI) from this date of July 15, 2019 until March 31, 2021;

WHEREAS the City of Yellowknife Council will keep the community informed about the CEDI;

WHEREAS the City of Yellowknife Council has appointed Mayor Rebecca Alty as their community champion;

WHEREAS the City of Yellowknife has appointed Sheila Bassi‐Kellett as the administrative community champion and Kerry Penney as the alternate; and

WHEREAS the City of Yellowknife commits to the following resources in collaboration with the Yellowknives Dene First Nation (YKDFN)CEDI champions:

A. Organizing and participating in five‐six 1‐1.5‐day joint workshops; ensuring there is representation of the elected officials, senior

GOVERNANCE AND PRIORITIES COMMITTEE Page 2 March 15, 2021 DM#642309 administration and economic development staff from each community at each workshop. B. Ensuring that joint CEDI champions meet monthly (by phone or in person) throughout the CEDI process, Stronger Together Approach, to organize the joint workshops and carry‐forward any necessary strategic or work planning. C. Responsible for ongoing community engagement and keeping the community informed about CEDI (may include agenda items at meetings, reports in local media, community announcements, etc.) D. Coordinate a contingency plan for the CEDI champions should a designated person leave their position prior to March 2021. E. Agree to maintain communication with CEDI staff and to assist with coordinating the logistics of community visits and workshops, as appropriate. F. Providing any in‐kind or financial resources required to hold the meetings (such as mileage to and from venue, in‐kind meeting space, and catering expenses above and beyond what can be reimbursed through the CEDI program). G. Actively participate in the planning for and management of the financial resources component of CEDI, including peer mentorship, study tour and capacity building grants.

BE IT HEREBY RESOLVED THAT the City of Yellowknife supports the participation in First Nation – Municipal Community Economic Development Initiative (CEDI) from the date of this Council Resolution until March 31, 2021.

Council Motion #0190‐19 That Council direct the Mayor and City Administrator to enter into a Memorandum of Understanding with the Yellowknives Dene First Nation (YKDFN).

APPLICABLE LEGISLATION, BY‐LAWS, STUDIES, PLANS: 1. City of Yellowknife Economic Development Strategy 2020‐2024; 2. City of Yellowknife Memorandum of Understanding with the Yellowknives Dene First Nation (YKDFN); 3. Truth and Reconciliation Commission of Canada: Calls to Action; and 4. United Nations Declaration on the Rights of Indigenous Peoples.

CONSIDERATIONS: Economic Development The goals of YKDFN and the City in commencing a Joint Economic Development Strategy were aimed at creating a stronger united voice that would maximize the prosperity of both communities by increasing opportunities for local business development and business attraction. While the communities have a strong relationship, both felt that a focused plan on how to work together to maximize future economic development was needed.

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Indigenous Relations The City and YKDFN have been working proactively together with a formal agreement that reflects the current relationship. The Memorandum of Understanding signed in 2019 reflects a strong partnership and the proposed Joint Economic Development Strategy identifies key areas for growth and partnership to work towards shared economic growth for the three communities of Yellowknife, Ndilo and Dettah.

Pandemic Context The COVID‐19 pandemic has, and will likely continue to impact Yellowknife, Ndilo and Dettah’s economy for some time and this includes the local business and economic climates. As a result, Administration will consider the implications of COVID‐19 on the proposed actions in the Strategy and adjust timelines and focus as necessary in the response to the Strategy and Implementation Plan.

ALTERNATIVES TO RECOMMENDATION: 1. That Council not adopt for information the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy and Technical Report; and, 2. That Council not direct Administration to draft a response to the Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy and draft an implementation plan based on the Strategy and report back to Council.

RATIONALE: The City and the YKDFN each have distinct governance authorities and responsibilities towards their residents and members, however the interests of all persons living in the communities are best served by working together in the spirit of reconciliation and cooperation.

Over the course of two years, YKDFN and the City, with the guidance of the CEDI team, have been applying the ‘Stronger Together Approach’ to achieve the goal of building the capacity of elected officials and staff to identify, prioritize, plan for and implement joint community economic development initiatives while developing a resilient, sustainable relationship. The YKDFN and City decided to develop the Joint Economic Development Strategy (‘Strategy’) to guide shared economic development interests and provide a framework for partnership to move forward.

ATTACHMENTS: 1. Yellowknives Dene First Nation City of Yellowknife Joint Economic Development Strategy (DM#641030); and 2. Yellowknives Dene First Nation City of Yellowknife Joint Economic Development Strategy Technical Report (DM#641028).

Prepared: March 4, 2021; JF Revised: March 8, 2021; KLT.

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Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy

2020

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page i

Contents

1. The Strategy at a Glance ...... 2

2. Introduction ...... 4

3. Summary of Major Themes from Engagement ...... 10

4. Economic Base Analysis Key Highlights ...... 18

5. SOARR Assessment ...... 20

6. Prioritizing Economic Development Initiatives ...... 29

7. Critical Path ...... 34

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page ii

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 1

1. The Strategy at a Glance Developing an inclusive economic development strategy that balances the priorities of reconciliation, sustainability and prosperity was a complex, yet exciting, undertaking. The world is currently in a state of unprecedented change, amidst the current COVID-19 pandemic when the Northwest Territories (NWT) was already facing added economic pressures like the slowdown within the mineral and mining sector. However, there is still ample opportunity for continued prosperity and growth for Yellowknives Dene First Nation and the City of Yellowknife. This strategy aims to make the most of economic development efforts and ensure City and First Nation priorities are aligned, and benefits are felt by all members of the community. But more importantly, it seeks to celebrate the intangible benefits of partnership, of creating a foundation of friendship, trust and respect that will last long into the future. Figure 1 shows the three strategic directions and prioritized assessment criteria. For more detailed actions refer to Section 6. Figure 1: Summary of Opportunity Areas

Local Business and Workforce Development Entrepreneurship Support - Reduce skills gaps by supporting Tourism - Create a thriving ecosystem where the transition of Aurora College to a polytechnic university. - Work collaboratively to assist residents are supported in creating the COVID-hampered tourism new businesses. - Reassess how certification economy to recover and plan - Provide tailored assistance to new programs are promoted and run. for the future. entrepreneurs to help them navigate - Build work-integrated learning - Embrace opportunities to the bureaucratic and regulatory opportunities. celebrate First Nation culture. environment. - Engage regional stakeholders - Redefine the tourism - Establish a 'one stop shop' for all and promote effective strategies. experience by leveraging business needs and market - Increasing awareness of and technology. opportunities across the three participation in the Dechita communities in region. Naowo training division.

Economic Impact Alignment with existing strategies Social/Cultural Impact

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©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 3

2. Introduction Project Background In December 2019, the Yellowknives Dene First Nation and the City of Yellowknife signed a Memorandum of Understanding1 (MOU), which solidified the government-to-government relationship between the neighbouring communities. The memorandum acknowledges that Yellowknife is on Chief Drygeese Territory, the unceded lands of the Yellowknives Dene, the people who have been caretakers of this land since time immemorial. It outlines each government's commitment to reconciliation and a mutually beneficial relationship. The MOU identified shared infrastructure and economic development as a mutual interest. In the past, the two communities have collaborated on projects on an ad hoc basis, with no formal relationship or strategy in place. This Joint Economic Development Strategy is intended to guide shared economic development interests and provide a framework for the partnership to move forward. It is also designed to support the people and businesses of Yellowknife, Dettah and Ndilo in their efforts to enhance future economic growth and prosperity. Before this joint process, the Yellowknives Dene First Nation and the City each developed their own Economic Development Strategies. The City of Yellowknife Economic Development Strategy was approved in April 2020, and the Yellowknives Dene First Nation Economic Development Strategy is in its final stages of completion. These strategies were scanned for existing shared priorities and validated throughout stakeholder consultation for this project. The following diagram (Figure 2) shows the identified economic development priorities of each community. Shared priorities are identified in the middle will form the basis of this strategy's directions.

1 City of Yellowknife and Yellowknives Dene First Nation, Memorandum of Understanding, December 2019.

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 4

Figure 2: Shared Economic Development Priorities

Yellowknives Dene First Nation and City of Yellowknife have expressed that they want to enhance economic prosperity to the region by developing a Joint Economic Development Strategy. The following is an excerpt from their application to the Canadian Northern Economic Development Agency, which funded the creation of this Strategy.

Through jointly developing a 5-year strategy, we anticipate there will be many potential benefits such as a stronger, united voice for engaging with industry and other levels of government; an increased ability to attract development funding from other levels of government; economies of scale savings through the sharing of capacity, knowledge and/or service delivery, to name a few. Furthermore, through the identification of mutual needs along with current and future opportunities, we anticipate that there will be an increase in opportunities for local business development and employment through job creation. For these reasons, the City of Yellowknife and the Yellowknives Dene First Nation recognize and understand that in today’s competitive economy, we will be stronger together.

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Yellowknives Dene First Nation The two core communities that make up the Yellowknives Dene First Nation are Dettah and Ndilo. They are located near Yellowknife on Great Slave Lake. Ndilo was established in the 1950s on Latham Island, 3.5 km from the city centre. Dettah, a traditional village and historic fishing camp, is located east of Ndilo on Yellowknife Bay and is accessed via a 27 km all-weather road or a 6.5 km ice road on Great Slave Lake during the winter. The First Nation has a membership base of roughly 1,500 people. Yellowknives Dene First Nation has a relatively young population, with 21% of all Dettah and Ndilo residents aged 30-49.2 The Yellowknives Dene are one of the peoples of the T' satsaot' ine , known for the pots, knives and tools they crafted from copper. The economy in Dettah and Ndilo was a traditional hunter, gather and barter system until only a few generations ago. Today, Yellowknives Dene First Nation benefits from the economic activity generated by their proximity to natural resources in the North Slave Region. The Det’on Cho Management LP, Yellowknives Dene First Nation's business development arm, either owns or is engaged in partnerships with 15 companies that serve local resource industries, including Diavik and DeBeers' Snap Lake mines. While the development corporation is a highly successful with annual gross revenues of $50 million per year, the economy of Dettah and Ndilo lag behind Yellowknife. Evidence of this includes a lack of housing for members and a lack of retail presence. Through stakeholder consultation, Yellowknives Dene First Nation members expressed that there is a widespread misunderstanding of their identity, culture, language and history. Many in the Yellowknife region mistake Yellowknives Dene peoples as descendants of Tłı̨chǫ peoples and the confusion around the Yellowknives Dene's identity persists. Yellowknives Dene First Nation has consistently identified a desire for their language and culture to be more accurately reflected by city residents and visitors. The Yellowknives Dene First Nation's Vision and Mission Statement as written in its Draft 2020 Economic Development Plan is:

Vision Statement The Yellowknives Dene are a self-governing First Nation with a sustainable economy demonstrating traditional values, investing in strategic initiatives that generate wealth for all generations.

Mission Statement The Yellowknives Dene First Nation Council, Administration and Det’on Cho Management LP work in harmony towards generating the wealth and capacity of our First Nation to sustain the prosperity, employability and well-being of our members and institutions.

2 MDB Insight, sourced from the Economic Base Analysis located within the Technical Report, Appendix D. The data is from Manifold Data Mining 2018, and the Statistics Canada; 2016 Census, 2011 NHS; and 2006 Census.

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City of Yellowknife Yellowknife is the capital of the NWT, and it is located on the traditional territory of the Yellowknives Dene First Nation. It had an estimated population of 20,490 in 2018.3 It is located on the northern shore of Great Slave Lake. Yellowknife is a central regional hub with modern amenities. Its population comprises just under half (47%) of all people who live in the NWT. Before COVID-19, Yellowknife enjoyed a reasonably healthy economy: the mining industry, though in present decline, historically brought significant activity to the city, and the international tourism industry brought in considerable external revenue. Its current economic development strategy, finalized in April 2020, describes its economic health as such: "as of December 2019, Yellowknife posted a three-month rolling seasonally adjusted unemployment rate of 3.9% – markedly lower than the national rate of 5.6% and the rate of 13.8% for the remainder of the NWT." The city is home to a high proportion of well-educated families who earn some of Canada's highest average household incomes (the average family income in 2018 was $178,182). Household expenditures are nearly 50% higher than the national household average. Yellowknife's population grew by 6.5% over the period 2011 to 2018, higher than the NWT average of 5.3% but lower than the national average of 11.3%. Yellowknife has a relatively young population compared to Canada (median age of 35.8, compared to 41.4). As an important regional hub, it is a city with modern amenities and a young, educated workforce. Many of its workers are employed in public administration, mining and tourism, vital economic sectors for employment and business activity. Housing prices are an issue for the region, with a median value of a dwelling being $520,421 in 2018, a 44.7% increase between 2011 and 2018. The City of Yellowknife is dedicated to reconciliation with Indigenous peoples. On April 27, 2020, Council adopted the City of Yellowknife Economic Development Strategy 2020-2024. The purpose and objectives of this strategy are listed below.

Purpose To strengthen the economic base of the city and contribute to sustainable prosperity for residents and businesses. Objectives Ensure that Yellowknife offers a positive customer service environment; Support small and emerging business; Promote Yellowknife as a bold and innovative city; Market Yellowknife to investors and residents; Understand the needs of business to help them prosper; and Regularly report on actions and achievements.

3 MDB Insight, sourced from the Economic Base Analysis located within the Technical Report, Appendix D. All data is from Manifold Data Mining 2018, and the Statistics Canada; 2016 Census, 2011 NHS; and 2006 Census.

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City of Yellowknife and Yellowknives Dene First Nation Shared Vision Statement In April of 2019, the City and First Nation were chosen to participate in an accelerated 2-year model of the First Nations – Municipal Community Economic Development Initiative (CEDI)’s Stronger Together Approach. CEDI is a national program that is co-delivered by Cando and Federation of Canadian Municipalities and aims to improve the economic prosperity of participating First Nations and adjacent municipalities through joint community economic development and planning initiatives. As part of this ongoing partnership, CEDI Champions that consisted of senior staff and elected leadership from the City of Yellowknife and the Yellowknives Dene First Nation were appointed to the CEDI Working Group which held monthly meetings and bi-annual workshops with the main objective being: ongoing relationship building and developing a joint community economic development initiative. As part of this process, the CEDI Working Group provided significant input into the development of this Joint Economic Development Strategy. The group also selected a shared vision statement and a partnership tagline (see below) based on the common themes, the draft vision statements and list of values that emerged from two workshop sessions.

Shared Vision Statement Three communities working in harmony towards a sustainable, healthy and prosperous future with mutual respect in the spirit of reconciliation, honouring connection to land and creator, stronger together. Shared Partnership Tagline With the beat of the drum, three communities, one heart!

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©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 9

3. Summary of Major Themes from Engagement The figure below outlines all of the stakeholder engagement activities conducted for the initial phase of the project. Results from these analyses, combined with the consultation efforts, inform the Strengths, Opportunities, Aspirations, Risks and Results (SOARR) Assessment (see the following section), which sets the stage for action planning. Figure 3: Overview of Initial Engagement Activities

Impact of COVID-19 As with all communities across Canada, the Yellowknife region has been significantly impacted by the global pandemic. Insights gained across the engagement process indicated that businesses are struggling to survive amidst stay-at-home orders and border closures. From a tourism perspective, Yellowknife felt the impacts of the pandemic earlier than other parts of Canada, due to its reliance on Chinese and East Asian visitors who were among the first locations to be impacted by COVID-19. Residents noted that pre-existing social issues (e.g., homelessness and poverty) seem to have been exacerbated by the pandemic with mental health issues on the rise. Businesses were largely supportive of the Government of the Northwest Territories (GNWT) and local governments’ handling of the pandemic. They felt the community has become stronger and closer together as a result. Results from the businesses survey4 show 68% of businesses ‘had to change how they delivered their products and services’, 41% had to 'shorten their hours of operation' and 35% ‘temporarily close their businesses’. Surveyed businesses also reported that after the pandemic, they were most likely to incorporate ‘flexible working hours’ (60%), ‘restructuring/reorganizing’ (50%) or ‘remote working’ (43%). These responses demonstrate that COVID-19, while disruptive, is a precursor for positive change in revamping how businesses approach their daily activities.

4 See Technical Report, Appendix G for more information.

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Underlying Challenges in the NWT Economy A recent report by Impact Economics5 analyses underlying challenges present within the NWT economy. The report indicates growing acceptance throughout the NWT that the economy is in some degree of trouble but there is lingering hope in the form of mine expansions and other smaller mining projects. The document notes that when a "realistic [consideration of] scenarios 5, 10 and 15 years into the future [is conducted], even the best case represents an economic decline from where the territory is today." The report goes on to note that government spending has been a foundation of economic growth for the territory, and therefore if the region experiences population decline, it will result in a lower territorial tax base and reduced federal transfers – further exacerbating the challenge. With the report predicting a decline of 3,200 people over the next decade, this reliance on government spending is worrying. The report argues that the NWT has become "complacent knowing full well the challenges present in the economy [yet] it has only focused on short term solutions and taken time to act." To achieve meaningful change, the NWT and key localities (e.g., Yellowknives Dene First Nation and City of Yellowknife) must change their vision for the region and actively work together to diversify the economy. The report concludes by outlining numerous diversification opportunities such as power generation through renewables, developing small business and entrepreneurship, workforce development, and fishing and agriculture expansion. However, it stresses the region must act soon if it truly wishes to enact positive change.

The relationship between the City and First Nation is strengthening Participants during the virtual industry and community workshops felt that September 2017’s UN Declaration on the Rights of Indigenous Peoples (UNDRIP) was a solid step forward in developing positive relations and a respect for Indigenous history and culture. PlaceSpeak Survey Results indicated a broad awareness of the MOU amongst residents. Over half of the respondents (52%) reported they are aware of the MOU. This joint economic development strategy is seen by many to help more formalize this relationship so both communities can prosper together while also highlighting the co-dependence the communities have on economic development activities.

Importance of prioritizing relationship and trust-building ahead of economic development or political agendas Stressed repeatedly throughout the stakeholder phone interviews and in-person sessions was the need to focus on relationship building between the City and First Nation instead of strictly focusing only on business. Yellowknives Dene First Nation members explained how trust, relationships and respect were fundamental components of their culture and value system. For this joint partnership to succeed, time needs to be spent on laying a solid foundation. As highlighted above, stakeholders and residents were positive towards this joint strategy and the work that has been done during previous years to bring members of all three communities closer together.

5 Impact Economics, Investigation of the Underlying Challenges in the NWT Economy, June 2019

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Overall business satisfaction is high Results from the business survey indicated that overall business satisfaction in Yellowknife is strong at 86%, with 35% very satisfied and 51% somewhat satisfied (see Figure 4). Figure 4: Overall Business Satisfaction Levels (n=100 respondents)

Similarly, local operators' attitudes have been improving with 19%, indicating their level of satisfaction is more positive than 12 months ago, compared to 58%, indicating it had stayed the same or not changed. 23% indicated that their attitudes were more negative than the previous year (see Figure 5). Figure 5: How has your attitude towards operating within the region changed over the Past 12 Months? (n=100 respondents)

Stakeholders are most concerned with the availability of adequate housing, public transit services & skilled labour and unskilled labour When businesses were asked to rate their satisfaction on 20 different factors affecting their business performance, only two of these factors had a satisfaction level of less than 50%. When considering what factors are statistically most likely to lead to improved business satisfaction, the top priorities are internet service, the availability of post-secondary programming that aligns with business needs, availability of skilled labour and availability of adequate housing. It was agreed that addressing these priorities through review, adaption, or sustained action is most likely to lead to higher business satisfaction.

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Figure 6: Business Survey – Derived Importance for Business Factors

Level of Importance Performance Priority Variable (out of 10) (out of 100%) Rank Internet service 7.5 44% 1

Availability of post-secondary programming that aligns with 6.3 44% 2 business needs Availability of skilled labour 7.2 54% 3 Availability of adequate housing 7.5 60% 4

Availability of funding programs for business and property 7.5 63% 5 improvement Provincial roads and highways 7.2 64% 6 Availability of property for purchase or lease 6.4 64% 7 Development/building permit process 5.2 59% 8 Local roads and streets 6.8 70% 9 Cellular phone service 6.4 70% 10 Availability of unskilled labour 6.1 72% 11 Availability of appropriate work-related training 6.1 72% 12 Municipal property taxes 5.2 70% 13 Development charges and off-site levies 5.3 78% 14 Availability of health and medical services 6.8 86% 15 Water availability 8.3 94% 16

Tourism and local business development has the highest potential for improving the local economy and easiest for joint collaboration When respondents rated the various economic development activities based on how difficult they expected it to be for the City of Yellowknife and Yellowknives Dene First Nation to work together, tourism and local business development were the most often rated as a 1 or 2 (easiest). Land development and mining were the priorities that were most often rated as a 4 or 5 (most difficult) (see Figure 7).

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Figure 7: On a scale of 1 to 5, with 1 being the easiest and 5 being the most difficult, how easy would it be for the City and First Nation to work together on each of the shared economic priorities? (n=68)

Tourism 34% 18% 23% 13% 11%

Local Business Development 17% 18% 42% 13% 10%

Agricultural Development 10% 28% 32% 18% 12%

Mining 7% 15% 43% 20% 16%

Land Development 3% 20% 30% 27% 20%

0% 20% 40% 60% 80% 100%

Respondents also felt that tourism possesses the highest potential for improving the local economy as a joint initiative. Agricultural development and local business development were also seen as important opportunities. However, responses were divided for land development and mining, with substantial representation of responses in all parts of the spectrum from positive to negative. Figure 8: Which joint economic priorities have the highest potential for improving the local economy for Yellowknives Dene First Nation members and City of Yellowknife residents, in your opinion? Rank the priorities from 1 to 5, with 1 being the highest potential and 5 being the lowest potential. (n=68)

Tourism 39% 23% 15% 10% 13%

Agricultural Development 30% 20% 20% 15% 16%

Local Business Development 26% 24% 16% 15% 19%

Land Development 19% 22% 27% 17% 14%

Mining 14% 24% 29% 19% 14%

0% 20% 40% 60% 80% 100%

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Need for economic diversification away from the mining and mineral sector and prioritizing achievable action items While mining was noted to be a core pillar of the local economy, there was broad consensus that there is a need for economic diversification, particularly towards the tourism sector. This trend is noted in the statistics above. Stakeholders were also clear that both the City of Yellowknife and Yellowknives Dene First Nation have their economic development strategies that are relevant and should be incorporated. This joint strategy is an opportunity to focus on areas of overlap and areas where there is most likely progress being obtained. That is why opportunity areas such as land development, mining and housing were discounted, as stakeholders felt the probability of short-term success was limited. While these areas are important, making meaningful action towards addressing them is highly dependant on the finalization of the Akaitcho Land Claim Agreement, which could still be several years away.

I think local business and tourism opportunities are the strongest way to build an ENDURING shared economic development. I recognize that mining, land development and other resource are likely most profitable. But they don’t include community members at all levels, and they don't have the same opportunity for many community members to develop lasting and proud ownership over partner businesses. I also think land and resource development will nearly always be much more contentious in nature and have opposition, and possible unintended long-term negative consequences in terms of relationship building, trust, and environmentally. – PlaceSpeak Survey Respondent

Greater training and development needed for the local workforce Skills and development training to support the local workforce was another important theme throughout the consultation process. Stakeholders outlined a desire to collaborate with the local college and its plans of developing a polytechnic university, alongside the government to establish more streamlined training courses to help local youth finish high school and enter into post-secondary training. Skilled trades courses that service the local mining sector or construction industry was highlighted by industry as in need of more local talent. Ongoing support and training for Yellowknives Dene First Nation members entering the workforce is also needed to help them adapt to their new role and ensure they feel comfortable in the organization. Findings from the business survey also supported these insights. The derived importance rankings, as displayed in Figure 9, show which local factors have the largest influence on businesses' level of

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confidence in their ability to adapt to/be resilient when facing disasters and pandemics. As shown in the table below, businesses were least satisfied with 'webinars, workshops or training opportunities put on by the local government' and need more 'timely information regarding available, local funding programs from the local government.' After the pandemic, 46% of businesses plan on implementing 'reskilling or upskilling employees on new ways of working.' Overall, this indicates that training and support to help develop local talent and supporting the entrepreneur community navigate the regulatory environment, is critical. Figure 9: Business Survey – Derived Importance for Resilience (n=100 respondents)

Level of Importance Performance Priority Variable (Out of 10) (Out of 100%) Rank I have benefitted from webinars, workshops or training opportunities put on by the local government for post- 5.8 32% 1 COVID recovery I have benefitted from timely information regarding available, local funding programs from the local 7.4 54% 2 government The local government has been flexible with their taxation 6.4 53% 3 to help businesses recover The local government has been flexible with their 7.7 65% 4 regulations and policies to help businesses recover I have all the information I need regarding the COVID 19 business recovery programs from federal/provincial 7.7 80% 5 governments. I feel confident in my ability to access to enough capital 6.2 83% 6 I feel confident in my ability to use technology to adapt to 7.0 90% 7 the post-COVID business practices/environment I feel confident in my ability to re-orient my business 6.5 91% 8 model I am confident we will have access to sufficient numbers 6.2 91% 9 of staff I am confident in the policies/ processes I need to put into 8.3 96% 10 place to ensure physical distancing I am confident in our ability to train our staff for the new 6.7 96% 11 business model I am confident in our ability to clean or sanitize 6.2 96% 12 appropriately

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4. Economic Base Analysis Key Highlights An economic base analysis was also conducted to understand the socio-economic, labour force and industry composition in the city and First Nation communities. The image below presents highlights from this analysis.

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5. SOARR Assessment A Strengths, Opportunities, Aspirations, Risks and Results (SOARR) Assessment is a model for reflecting on strategic planning. It is a forward-looking model, taking elements of what would traditionally be affiliated with a Strengths Weaknesses, Opportunities and Threats (SWOT) analysis. It then uses insights gained through stakeholder consultations to inform what is desired for the future and how to determine when our aspirations have been met (see Figure 10). Figure 10: Data Points that Influence SOARR Assessment

In-community/ Stakeholder Virtual Economic Forecasts Interviews Workshops and Market Trends Analysis

Document Review SOARR Economic Base Analysis Analysis

The concepts underpinning the SOARR model are outlined in the figure below. The SOARR Assessment is used in conjunction with the rest of the content of this Background Report. In essence, it represents a summary of all the important learnings uncovered to date so that some preliminary directions can be explored for the Joint Economic Development Strategy. Figure 11: Key Considerations for a SOARR Analysis

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• Establish more annual events • Increase collaboration with industry operators Natural Beauty – The region has plenty of natural resources for outdoor • Improve the online and offline marketing presence recreation opportunities and tourism promotion. • Create a new brand identity Great Slave Lake – Great Slave Lake is both a tourism destination with fishing • Develop and improve key environmental and cultural and boating opportunities and holds the potential for commercial fishing assets expansion.

Natural Resources (Mining) – Mining is a core strength of the region but has experienced a downturn over the past 10 years and has been hit hard with COVID-19. However, there are still opportunities for exploration and development over the long term.

Government Employment – The region is a hub for government jobs. These are generally stable and well-paying.

Tourism Sector – Before the impact of COVID-19 on the domestic and international visitor market, Yellowknife was a hub for tourism and had been experiencing considerable growth. In 2018-19 both the Northwest Territories and the Yukon recorded record visitor numbers, with the GNWT generating $210 million in visitor spending. Within Yellowknife, statistics on the arrival of visitors to Yellowknife Airport showed that over six years, visitor numbers increased by 81% (52,392 people), totalling 117,030 in the 2018-19 fiscal year.

Sense of Community – Throughout the engagement, people from across the region highlighted the robust sense of community as a strength.

Cultural History and Diversity – Yellowknives Dene First Nation has a rich history and culture and can bring to the table new perspectives that should be utilized within this partnership.

Demographics – Yellowknives Dene First Nation has a young population looking for work. Better leveraging and developing talent locally, partially within Yellowknives Dene First Nation, is essential to ensuring the region has the labour force to support economic development activities.

Aurora College – The presence of Aurora College is significant for workforce development opportunities for the region. Further, its planned transition into a polytechnic university can transform workforce development activities within Alberta the region. • A county with multiple tourism products and events • A refreshing, healthy and active community that is known for its parks and lakes • A region full of geological and cultural treasures • Become a destination in the minds of people living in ©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 21 Southern Alberta

Settlement of Land Claim – Resolving the Akaitcho land claim proceedings is significant. It will allow Yellowknives Dene First Nation to utilize and develop lands and work in partnership with the City on joint economic development initiatives. However, the exact finalization date is in constant flux and difficult to plan around.

Government-to-Government Relationship Building – Major strides have been made in the relationship between Yellowknives Dene First Nation and City of Yellowknife. Continuing this relationship will create more opportunities to work together for mutual benefit.

Affordable and Suitable Housing – The creation of affordable housing options for city residents and First Nation members was repeatedly highlighted as an important issue and is supported by background research. The City and First Nation could jointly apply for the National Housing Co-investment Fund to develop affordable housing. ▪ About 20% of households in Yellowknife experience unaffordable, inadequate, or not suitable housing. ▪ The pace of construction for purpose-built rental units is not keeping pace with the demand. ▪ Yellowknife tenants pay one of the highest average rents in Canada. ▪ Yellowknives Dene First Nation members sometimes experience barriers to accessing suitable housing in Dettah and Ndilo and are forced to move into Yellowknife, which can affect disconnection from their community. A better understanding of suitable housing options for members may be required. ▪ The Yellowknife Community Plan and Background report identified housing opportunities, including: i) Incentivizing lot-splitting, ii) Encouraging mixed-use development, iii) Allowing more density in downtown and surrounding neighbourhoods and; iv) Relaxing parking restrictions. ▪ The City and First Nation could explore co-developing land (i.e. installing infrastructure to make those lands investment-ready). However, marketing that land to developers could be unattractive for private developers in the short-term due to legal uncertainty, complex ownership, zoning complexity and a challenging downtown real estate market.

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Continued tourism development – was repeated consistently with notable opportunities, including: ▪ Opportunity to developing tourism centred around mining (e.g., exploring the twinkle underground and sparkle in the sky). Some work has been explored this sector by Rio Tinto, but more support could be provided.

▪ Establish greater collaboration between the City and First Nation to promote indigenous cultural tourism. Cultural tourism must be authentic and should tell Yellowknives Dene First Nation member's own stories. Actions could include updating displays at Yellowknife Airport to better reflect Yellowknives Dene First Nation culture. ▪ Greater management of unregulated hotel accommodation (e.g., Airbnb) to ensure sustainable tourism is achieved over the long term. There has been talk of a hotel levy or municipal accommodation tax that would create revenue dedicated towards destination marketing activities. ▪ Development of tourism operators' service skills and knowledge (e.g., increased training on local history and Yellowknives Dene First Nation culture). ▪ Development of a visitor information centre in Dettah or Ndilo, a small arts and crafts retail outlet in Yellowknife, and multi-lingual wayfinding signage. ▪ Positioning Yellowknife as a business conference destination, particularly around the mining sector. ▪ Improved data collection on tourism numbers, Yellowknives Dene First Nation community demographics, labour force participation and business strengths. ▪ Creating tourism brand recognition for the Yellowknife region that has cohesion across all spheres of tourism branding, resident attraction branding and investment attraction.

Enhance Local Training Opportunities –There is a significant talent shortage in many sectors that could be filled by local talent if better training opportunities are provided. These must also be tailored to Yellowknives Dene First Nation community needs. ▪ Currently, the attainment of post-secondary education and specialized skills amongst Yellowknives Dene First Nation members is low. This low rate is a barrier to accessing higher-wage employment in local industries. ▪ Improve local employment attraction and retention to increase Yellowknives Dene First Nation labour force participation. ▪ Respect traditional and cultural values in learning, skill development and employment programs. ▪ Jointly advocate for a polytechnic university and ensure Indigenous student inclusion is at the forefront of programming.

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Marina Development – The development of a marina on Great Slave Lake could be an opportunity for Yellowknives Dene First Nation to generate revenue.

Supporting Small and Emerging Businesses – Increasing entrepreneurship opportunities and joint initiatives is important for long term sustainability. Potential initiatives could include: ▪ Jointly managed small business incubator ▪ Development of business skills and capacity among First Nation members and city residents

Reducing Social Issues and Poverty – An opportunity for the region is reducing social issues (e.g., drug and alcohol abuse and homelessness). More support structures were highlighted as being important as well as understanding the roots of the issue. Poverty and homelessness were the biggest social issue identified by city residents in the 2017 citizen survey. Yellowknife's 10 Year Plan to End Homelessness 2017 seeks to address

this by focusing on leadership, coordination, reconciliation and healing.

Downtown Revitalization - downtown has a perception of being unsafe and not visually appealing to visitors. Conducting a downtown revitalization project that collaborates with Yellowknives Dene First Nation members could be explored. Supporting a sense of inclusion in downtown Yellowknife among Yellowknives Dene First Nation members could be facilitated by tactical urbanism activities. For example,

an interactive installation could support the visibility of Yellowknives Dene First Nation culture in downtown.6

Agriculture/Food Security – Food security was highlighted as a challenge for all northern communities. There is an opportunity to look at vertical farming/greenhouse development that leverages local educational institutions to create a reliable, affordable food supply in northern communities. The Yellowknife Food and Agriculture Strategy identifies the following opportunities:

▪ Development of business skills and capacity among First Nation members and Yellowknife residents. ▪ Growing connections to land, histories, culture and people, enhance access to urban agriculture basics. ▪ Commercial agriculture and commercial fisheries could be major economic drivers through export activities. ▪ Increasing participation in the farmers' market by both city and First Nation residents could be a joint initiative.

6 See City of Lethbridge ‘Oki’ sign

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Polytechnic University – The GNWT has released a discussion paper proposing transforming Aurora College into a polytechnic university with specialization areas within skilled trades and technology; mineral resource and environmental management; business and leadership; and health, education and community services. This development presents many opportunities for Yellowknives Dene First Nation and City of Yellowknife to influence workforce development priorities.

First Nations Language Hub – There is an opportunity to expand on existing first nation language programing to develop a language education and conservation hub. This has the potential to attract language students domestically and internationally and help preserve and celebrate Yellowknives Dene First Nation culture.

Airport Development – Directed through the GNWT, so opportunities include advocating for border services at the Yellowknife airport; leveraging the airport as a hub for transportation for mines in other northern communities (e.g., Nunavut), increasing domestic flight routes and frequency to Yellowknife for tourism purposes, and promoting development in support of aviation, logistics and commercial opportunities. Opportunities are also evident in airport branding, including increasing First Nation presence at the airport and advocating for the airport to waive advertising fees, installing City of Yellowknife, Yellowknives Dene First Nation and NWT flags at the arrival gate, and signalling to visitors that they are arriving at Chief Drygeese Territory.

Reduce Shipping Costs – Shipping impacts high food prices as there is limited demand on the return leg of the journey (Yellowknife south). One opportunity is to create a centralized system to identify all shipments in the region so transportation companies can more easily acquire loads and reduce costs.

Deconstruction Instead of Demolition – Changing legislation to limit demolition of houses with focus placed instead of deconstruction and salvation of raw materials. These raw materials could then be used in other construction or art projects instead of simply being waste.

Renewable Energy – Continue implementing the City of Yellowknife's Energy Action Plan by increasing renewable energy usage and working towards a carbon-neutral, zero-waste city with reduced greenhouse gas emissions.

Indigenous Procurement Policies – The Det'on Cho Management LP has occasionally lost out on government contracts to either external or non-indigenous proponents. Advocating for better Indigenous procurement policies may ensure that economic benefit from projects in the region is contained as locally as possible.

Shared Economic Development Resources – The City and First Nation could work together to share either a staff person or other types of resources to deliver joint economic development activities. A possibility would be a shared grant writer to leverage funding programs available to only one of the two communities.

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Continued relationship building - To form a resilient, sustainable partnership. Business attraction and investment - Are critical to the future. Shared authority – Governance structures and frameworks are aligned to make more effective joint decisions. Improved social wellbeing – Benefits all residents and helps attract businesses. Economic Recovery – the region must survive the downturn in the mining and tourism sectors while growing other industries (e.g., agriculture).

Vibrancy in Downtown Yellowknife, Dettah and Ndilo – with new retail spaces in each community, and arts and culture. Destination businesses in Dettah and Ndilo for city residents and tourists to visit.

Training and Development Support – with a large portion of Yellowknives Dene First Nation youth finishing high school and entering meaningful employment.

Reduced Poverty, Social Issues and more Affordable Housing – Greater support provided to those with wellness issues across the city and First Nation, and suitable and affordable housing accessible to all.

Widespread Recognition of Yellowknives Dene First Nation Culture in Yellowknife – City residents and tourists recognize Yellowknives Dene First Nation as the first peoples of the area and have a basic understanding of their culture.

Leading Tourism Growth – Yellowknife, Dettah and Ndilo are collectively known as a tourism destination that offers products and experiences that leverage the area's natural assets, unique culture and mining history.

Vision Statements – "Yellowknife is a welcoming, inclusive and prosperous community with a strong sense of pride in our unique history, culture and natural beauty." & "The Yellowknives Dene are a self-governing First Nation with a sustainable economy demonstrating traditional values, investing in strategic initiatives that generate wealth for all generations".

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Failure to Maintain Partnership – Slow COVID-19 Recovery – Without a strong governance forcing many people to leave model for this partnership, joint Yellowknife and the region due to initiatives may fall flat. a lack of job opportunities. The

economy enters a decline.

Unsustainable Tourism Industry – A Vulnerable Local Economy – Tourism rebounds too slowly and Without action to create is not a sustainable contributor to increased regional self-sufficiency, the economy. the local economy will be vulnerable to external shocks as the COVID-19 pandemic has highlighted.

Not transitioning to the knowledge-based economy– Failure to invest in talent could harm the region's ability to expand and diversify.

Education and Training – Supply of Affordable Housing – Resources have led to a Residents of Yellowknife and substantial increase in local Yellowknives Dene First Nation employment and a robust talent members have access to suitable pool. housing.

A Mutually Beneficial Working Sustainable Tourism and a Partnership – The City and First Growing Mining Sector – Both of Nation have many joint initiatives these mainstay sectors create to point to where they have jobs and opportunities for the successfully partnered and seen region. success.

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6. Prioritizing Economic Development Initiatives Following all engagement and research phases of the Strategy, ten opportunity areas for economic development were identified. Those can be found in the middle column in Figure 12, with a more detailed assessment of each opportunity from an earlier stage of the process is available in the accompanying Technical Report. That list of ten was exhaustive and included all opportunities that were identified between each organization’s economic development strategy and a few others that were discussed during consultation. The ten opportunities and five assessment criteria were used to prioritize and narrow the opportunities through a full-day workshop. That workshop was hosted by the consulting team along with CEDI representatives. Figure 12 provides an overview of the assessment criteria used, economic development initiatives analyzed, then prioritized criteria and final opportunities that were identified by participants. Figure 12: Key Criteria and Opportunity Selection Process

*Note: The seventh assessment criteria was added during the workshop. Despite this, due to the unknown and lengthy timeline of the agreement, Yellowknives Dene First Nation and City representatives felt that relying on the land claim settlement before starting work on actions would to be too risky.

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Notable Themes from the Session

▪ To build healthy communities through constructive dialogue. ▪ Importance of acceptance, respect and trust. ▪ Recognizing Yellowknives Dene First Nation culture, language and heritage and their connection to the land. ▪ Importance of building friendship first before focusing on business opportunities. ▪ Notion of mutual benefit and being stronger together. Putting aside differences to focus on creating a better future.

Prioritizing of Key Criteria During the workshop, the consulting team presented the list of 10 joint economic development opportunities. After some group discussion, each individual ranked the criteria using their mobile phones through Mentimeter, an interactive presentation software.7 This allowed the participants to see in real time which assessment criteria the group believed to be most important. Figure 13: What are the (3) most important assessment criteria?

Economic Impact 1st

2nd Alignment with Existing Strategies

3rd Social/Cultural Impact

4th Ease of Collaboration

5th Alignment with UN Sustainability Goals

6th Potential for Regional Self-Sufficiency

7th Impacted by the Akaitcho Land Claim Agreement (N=20)

7 Mentimeter 2020

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Insights and Takeaways ▪ Inclusion of a seventh criteria: Akaitcho Land Claim Agreement – The most significant discussion point was the importance of recognizing the impact the Akaitcho Land Claim agreement will have on the Yellowknives Dene First Nation and the City of Yellowknife's ability to implement tactics. Participants felt that this joint strategy should not rely on the agreement being finalised as there is no certainty as to when this will happen. It is better of to focus time, effort and money into more action-oriented opportunities that can occur within the short term and is within stakeholders' sphere of control. ▪ Note, while this criteria ranked last on the Mentimeter results, this was because some participants had voted early before the criteria had been added. After consultation it was decided not to complete the voting again as voters may be biased after seeing the live results. Rather, additional weighting to this criteria was incorporated into the strategy. ▪ Recognizing social/cultural impact is as important, if not more important, than economic impact – participants were adamant that economic impact – while important – should not be the only priority. The ultimate goal of this joint strategy is to establish a long-lasting partnership that brings both cultures together and continues to process of reconciliation. Each communities' individual economic strategies can highlight more dollar orientated opportunities. ▪ Building on what has come before instead of reinventing the wheel – The need to leverage pre- existing strategies from the City of Yellowknife and Yellowknives Dene First Nation and looking for the areas of thematic overlap as opportunity areas as heavily discussed. There is no use replicating work as there is a finite limit on internal resources. ▪ Managing the GNWT and Prioritizing actions that are within local control – Lots of commentary was made around how the GNWT seldom shares control and is very difficult to deal with. While joint lobbying efforts are advised, this strategy should focus on opportunity and action items that can be easily controlled by local stakeholders.

Prioritizing the 10 Opportunities and Reflection on Action Items As part of the last workshop session, participants were asked to identify which economic development opportunities should be prioritized based on the three previously selected assessment criteria: (1) Economic Impact, (2) Alignment with Existing Strategies, (3) Social/Cultural Impact. As before, members discussed the pros and cons of each opportunity within small groups for 20 minutes before accessing Mentimeter and ranking the opportunities in real time (see Figure 14). The top three rankings were moved ahead for the development of action plans.

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Figure 14: Which economic development opportunities will have the most positive impact on the key criteria?

Workforce Development 2nd Local Business and Entrepreneur Support Tourism 4th Land Development Housing 6th Mining and Mineral Development Fisheries 8th Food and Agriculture Airport Development 10th Food (N=18) Insights and Takeaways ▪ Diversification needed from the mining sector – There was broad consensus that the volatility of the mining sector means that effort should be placed in exploring new economic areas (e.g. tourism). ▪ Land development – Again, while important, any joint initiatives associated with it should only occur upon finalization of the Akaitcho Land Claim Agreement. These initiatives may be prioritized in a future Joint Economic Development Strategy. ▪ Need to educate locally and increase mentorship/work experience programs – Stakeholders all agreed that increasing talent retention through businesses and post-secondary collaborations is critical to overcoming the skilled talent shortage. Furthermore, it was recognized the significant flow-on effects improving education has on all of the identified economic opportunity areas. ▪ Need to share wins and local good news stories – More work should be done celebrating all that has been accomplished under this partnership and via other partners within the region. This will help with Business Expansion & Retention efforts (BR&E). ▪ Need to help businesses navigate the complex regulatory environment – It was acknowledged that there are number of supports within the NWT but that many entrepreneurs and small business owners get overwhelmed and unsure where to begin. This is especially relevant to Yellowknives Dene First Nation representatives who are less likely to use online sources. ▪ Integrating tourism experiences – Yellowknives Dene First Nation offers so much potential in terms of cultural tourism which is not being leveraged and has the potential to redefine the tourism landscape. ▪ Underlining the importance of celebrating culture and educating on friendship – Stakeholders felt that extending First Nation/City collaboration more broadly to the community is important if this strategy and partnership is going to be successful over the long-term.

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7. Critical Path Expand the MOU to Reflect a Shared Employee – Business Development/Economic Diversification Service

The actions contained in this Joint Economic Development Strategy are deserving of dedicated resources. In an ideal situation, the First Nation and the City would be able to allocate funding to a shared Business Development Officer. This person could work out of each of the communities when needed. That said, it is recognized that funding, capacity and collective agreements may complicate this process. Therefore, it is recommended that: The City and First Nation expand their MOU to include a shared service dedicated to economic and business development efforts. ▪ The Business Development/Economic Diversification service would officially include an employee (or employees) who can be administered through either the administration of the City of Yellowknife, Yellowknives Dene First Nation or contracted through an affiliated organization. Yellowknives Dene First Nation has indicated interest in taking on this responsibility and the two partners should explore this arrangement. Regardless of where staff operate from, it is anticipated that costs and decision making authority are share equally. ▪ This service should be developed on the basis of a three-year pilot project. With seed funding provided by the two partners, funding for this pilot project to cover salary expenses and other budget considerations may be supplied by CanNor’s IDEANorth program.

Economic Development management from the First Nation and the City would have two options in overseeing this individual: 1. Develop a workplan for this service based on the strategic objectives contained in this strategy and retain the team that is required to carry out the strategy’s recommendations; or 2. Recruit a lead individual and within their first 60 days, they would develop a workplan with priorities, timelines and budget allocation.

This service would report to a joint economic development committee comprised of staff and elected leadership from both the City of Yellowknife and Yellowknives Dene First Nation. The size and budget of this service is intentionally not identified within this strategy. The project started with 10 strategic directions and through engagement, workshops and professional opinion they have been reduced to three Strategic Directions containing a total of 12 actions. Further prioritizing of the 12 needs to be determined as identified above and should be based on the financial commitment that the communities are willing to invest.

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Three Strategic Directions Following engagement, three Strategic Directions were isolated based on stakeholder feedback. They were chosen based on their potential impact, actionability and achievability. Based on the initiatives in the previous section, see Figure 12. Why? This strategic objective relates to economic diversification by creating the conditions and partnerships necessary to foster innovation and entrepreneurship in new sectors and providing help to navigate the complex regulatory environment and a multitude of support services.

Strategic Direction 1: Local Business and Entrepreneurship Support

Why? This strategic objective relates to economic diversification by creating the conditions and partnerships necessary to foster innovation and entrepreneurship in new sectors and providing help to navigate the complex regulatory environment and multitude of support services.

Strategic Direction 2: Workforce Development

Why? This objective captures the need for workforce development that will ensure individuals have a broader choice in the direction of their career and future businesses have the talent needed to succeed. It incorporates the importance of meaningful employment opportunities and of connecting youth in practical work placements from an early age to gain experience. It discusses proposed changes to Aurora College as it potentially transforms into a polytechnic university.

Strategic Direction 3: Tourism

Why? This strategic objective addresses the aspirations of increased tourism and its role in reducing the reliance on the volatile mining sector. The City of Yellowknife and Yellowknives Dene First Nation have a distinct opportunity to redefine how they position themselves as the COVID-19 restrictions lift.

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Interpreting the Action Plan The following pages include actions for the three strategic directions. For each action, there is an explanation provided about what should be done, why it is important and how it should be implemented. Risks and mitigation have been provided along with the three prioritized assessment criteria and cost and time considerations. Ratings should be interpreted, as shown in the following figure. Figure 15: Action Plan Metrics

Metric Legend

Action Cost $ $$ $$$ Low Cost Moderate Cost High Cost

Time to Implement

Short Term Long Term Medium Term

Economic Impact

Alignment with Existing Strategies

Low Medium High Social/Cultural Impact

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Potential Funding Sources Many of the initiatives included in this Strategy may require funding assistance from partners other than the City of Yellowknife and the Yellowknives Dene First Nation. The following is a list of some of the potential funding sources that were identified through the CEDI, through which the City and First Nation developed this Strategy.

Program Organization Description and Link Who Can Apply

Government of Northwest Territories Encourages economic initiatives in communities for planning, development of First Nations Community Economic — Department of Industry, Tourism infrastructure, development of business information and community events

Development (SEED) and Investment that promote economic development. Municipalities Improves the economic development capacity of Aboriginal communities in Community Readiness and Canadian Northern Economic the three territories. First Nations Opportunity Program (CROP) Development Agency (All Territories)

Entrepreneurship and Business Canadian Northern Economic Provides financial support to entrepreneurs to expand their business in the First Nations Development program (EBD) Development Agency (All territories) three territories.

Strategic Investments in Strengthens the driving sectors of the economy in the territories, economic Canadian Northern Economic Northern Economic diversification, and encourage the participation of Northerners in the Development Agency (All territories) Development (SINED) economy.

The Invest Canada - Community Initiatives (ICCI) program provides financial Canadian communities and Invest Canada - Community Government of Canada - Canadian support to communities for their foreign direct investment (FDI) initiatives non-profit, locally-based Initiatives Trade Commissioner Service and activities. organizations

The Smart Cities Challenge is a competition open to all municipalities, local or regional governments and Indigenous communities (First Nations, Inuit and Métis) across Canada. Municipalities, local or

regional governments and This Challenge will inspire communities across the country to define their Smart Cities Challenge Infrastructure Canada Indigenous communities future with the help of their residents through the use of a smart cities (First Nations, Inuit and approach. Winning communities will be awarded with prize money to help Métis) across Canada. implement their smart cities proposals. Applicants have until April 24, 2018 to complete and submit their applications on the Impact Canada Challenge Platform.

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 37

Figure 16: Overview of Strategic Directions and Actions

Critical Path: Expand the MOU to Reflect Joint Business Development Officer

Strategic Direction 1: Strategic Direction 3: Strategic Direction 2: Local Business and Tourism Entrepreneurship Workforce Development Support COVID-19 Recovery Entrepreneurship Polytechnic and Support Hub University Joint Visitor Data Collection Increasing Information Centre and Management Participation of Skilled Trades Programs Friendship Festival

Work Integrated Learning Opportunities Culture Training & Certification

Regional Collaboration Creating the Tourism Experience of Tomorrow

Product Development and Branding

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 38

Strategic Direction 1: Local Business and Entrepreneurship Support This strategic direction relates to economic diversification by creating the conditions and partnerships necessary to foster innovation and entrepreneurship in new sectors, and support new business grow within Yellowknife, Dettah and Ndilo. Throughout consultations, it was identified that helping businesses navigate the complex regulatory environment and bridging the gaps between pre-existing support services was needed. Further, a strong through-line of this strategy was the resilience of the region’s business base. Many businesses have been struggling throughout the COVID-19 pandemic and are looking for innovative new ways to rebound. Harnessing some of that resilience, ensuring there are opportunities for start-ups, and increasing morale of business owners are all fundamentals that are pointed to in this series of actions. Context – Yellowknives Dene First Nation Planned Incubation Hub Internal discussions with Yellowknives Dene First Nation indicated that they are working on creating an incubation hub to help support entrepreneurship development. The project is still in the planning stage and is promising. It aims to provide customised support for First Nation residents, helping connect them to the numerous other services already offered by regional stakeholders (e.g. Yellowknife Chamber of Commerce, InvestNWT, NWT BDIC, GNWT Industry Tourism and Investment etc.).

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 39

▪ Action #1.1 – Entrepreneurship Hub

What ▪ Why ▪ How

First Nation, City The City and First Nation should work to bring their proposed 1. Current state analysis – Work with Yellowknives Dene First Nation and local incubation hub to life but in a joint setting. This initiative should and City Economic Development Officers to understand current business be focused on helping local businesses navigate licencing situation and vision. community work programs (e.g., food licencing), accessing funding and 2. Partnership – Reach out to regional partners to determine level of to establish a mentorship. support and cross promotion of services. 'one stop shop' 3. Site selection and funding – Identify funding streams and ideal site This initiative aligns strongly with stakeholder consultation entrepreneurship location. themes of the need of a 'one stop shop' to help navigate the hub. 4. Promote, promote, promote! – Success depends on community complex regulatory environment, suite of services already involvement and streamlined services. offered by regional organizations and a customized approach.

▪ Risks ▪ Mitigation

1. Finding funding and partnership support. 1. Detailed planning and stakeholder consultation will help to gain support and identify funding sources. 2. Different needs – Entrepreneurs' needs may differ between the communities and it could be difficult to offer joint services. 2. Hiring the right business representatives for the job is essential in offering high quality service. 3. Potentially waiting until the finalization of the Akaitcho Land Claim agreement could free up land and development space.

▪ Alignment with Existing ▪ Social/Cultural ▪ Cost ▪ Implementation ▪ Economic Impact Strategies Impact

$$$ High cost Medium term High High High

©MDB Insight – Yellowknives Dene First Nation and City of Yellowknife Joint Economic Development Strategy Page 40

▪ Action #1.2 – Data Collection and Management

What ▪ Why ▪ How

Investigate ▪ An essential aspect of making more informed decisions is establishing a 1. Review existing data sources – Conduct a creating Regional centralized and shared platform for business intelligence. Data can come from the review of internal and external data sources Labour Market Business Satisfaction Survey completed for this Strategy or business directories and identify overlap, gaps and old data. and Business complete with NAIC codes to better understand sector activity. Having a base level of 2. Data Collection – To fill gaps, including alumni Information intelligence on the business community, including knowledge of full-time vs part time tracking, job postings and relevant data which webpage. businesses, will assist all efforts to support and grow the local business base. communicates skills proficiencies or deficits. ▪ During the engagement process for this strategy, stakeholders anecdotally Ensure business listings are up to data. reflected that many entrepreneurs held full-time jobs as their main source of income. 3. Integration – Search for a qualified contractor In the Business Satisfaction Survey, 27.5% of 91 respondents reported that their to set up the webpage and link data sources. business was not their primary source of income. Tracking intelligence like this will assist the City and First Nation, and their shared business development officer, with 4. Application – Used the data in strategic supporting businesses in the region. planning.

▪ Risks ▪ Mitigation

1. Data sharing – Regional partners may be unwilling to share captured data sources. 1. Coordinated lobbying and clear explanation of need. If unavailable consider inhouse. 2. Outdated data. 2. Prioritize automatic upload of data. 3. Difficulty gaining enthusiasm around the action as data is generally not 'attractive'. 3. Clearly explain strategic benefits of the program.

▪ Cost ▪ Implementation ▪ Economic Impact ▪ Alignment with Existing ▪ Social/Cultural Strategies Impact $

Low cost Short term Medium High Medium

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Strategic Direction 2: Workforce Development This Strategic Direction imagines Dettah, Ndilo and Yellowknife as places where talent thrives and strong employment pathways exist for recent graduates. Likewise, employers are actively engaged in the talent attraction efforts and the need to import talent is minimized as much as possible. It also envisions an ambitious future for post-secondary education in the region, and details steps regarding the proposed transformation of Aurora College into a polytechnic university. Context – Aurora College Transformation Plans to transform Aurora College into a polytechnic university became official in 2018, after a foundational review of the college.8 The rationale behind this change was to focus on practical skills and trades-based degrees, as opposed to the inclusion of theory-based degrees at other universities. A new governance model aims to transform Aurora College towards a 'bicameral governance' model. This change would see increased regional representation within the college’s board of directors, including requirements for NWT residents and Indigenous members. This signals increased opportunities for collaboration between the college, Ministry of Education, Indigenous leaders, and other stakeholders. 9 In January 2019, the City also published a University Feasibility Study and Benefits report.10 The objective of the report was to determine whether a university model (or polytechnic university) would be feasible and provide benefits to the community and Territory. Overall, the report concluded that a polytechnic university is aligned with NWT’s labour market needs and can help to drive the City of Yellowknife's overall growth objectives through new educational pathways and research to drive economic diversification. The report reaffirms the need for collaborative partnerships, improvements to housing affordability/availability and boosting education outcomes to ensure the success of the Polytechnic University.

8 GNWT, Aurora College Foundational Review, 2018 9 GNWT, DISCUSSION PAPER - Aurora College and Polytechnic University Governance, August 2020 10 Strategy Corp, University Feasibility and Benefits Study: Final Report to the City of Yellowknife, January 2019.

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Context – Labour Market Shortage The NWY has a high forecasted demand for trade workers. The GNWT estimates that over the next 15 years, there will be 28,500 to 36,700 job openings in the NWT, and there will be 2,312 trades related job openings.11 This skilled labour gap makes it difficult for local businesses to hire and retain talent and is only expected to worsen in coming years due to an aging workforce and people leaving the region. One of the main challenges behind this talent gap is poor completion rates in apprenticeship and certification by Indigenous apprentices and female apprentices in non-traditional trades. In the NWT, “56% of apprentices are Indigenous, and 7.5% of apprentices are female. Only 40% of those who complete the apprenticeship program are Indigenous”.12 Factors contributing to low completion rates include: ▪ Limited availability and experience of journeypersons to train and mentor apprenticeships. There are also limited incentives and resources available to support mentors and mentor training. ▪ There is a need to review how NWT’s Apprenticeship, Trades and Occupational Certification Board (ATOCB) implements the program and provides support structures. Currently, each region, with the exception of Yellowknife, has Career Development Officers responsible for the daily administration of the apprenticeship program. The nearest administrators working directly with employers, apprentices and tradespersons are in Hay River, Fort Resolution and Fort Smith.

Potential of Building a Sustainable Knowledge Economy It is important to acknowledge the economic potential of the Knowledge Economy (KE). The KE is defined as, “a greater reliance on intellectual capabilities than on physical inputs or resources.” The KE sector encompasses a variety of organizations, aspects of different sectors, and initiatives that produces and uses knowledge as an economic driver, from research, to training, and indigenous collaboration.13 In March 2019, a discussion paper was presented to the NWT Legislative Assembly titled ‘Developing a Sustainable Knowledge Economy in the Northwest Territories’. Prepared by Hotıì ts’eeda, the paper outlines the large economic potential of the NWT KE. The report also recognizes the potential that research and post-secondary education and training institutions have in developing economic opportunities for local communities.

11 GNWT, Skills for Success, 2015–2025 12 NWT Apprenticeship, Trades and Occupational Certification Strategy, 2017 – 2022 13 Powell and Snellman (2004)

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The current state of the NWT KE sector is described as being fragmented and without a clear strategic direction. However, the document references the huge potential of the NWT polytechnic university as being a “anchor institution” that could act as a catalyst for growth within the sector. Potential opportunities identified included utilizing the polytechnic as a catalyst for partnership, professional development and knowledge sharing; working with National and Provincial partners to secure targeted investment in learning areas; and, ensuring that local stakeholders, such as the City of Yellowknife and the Yellowknives Dene First Nations, are actively consulted during the development of the polytechnic university. The key takeaway for this strategy is that at a Territorial and National level, the NWT KE is being prioritized, and there are opportunities for the City of Yellowknife and the Yellowknives Dene First Nation to have their voices heard in the development of this emerging sector.

Schools North Apprenticeship Program One program attempting to combat this skills gap is the Schools North Apprenticeship Program (SNAP). SNAP is a work experience program for NWT high school students. It provides students who are interested in skilled trades with a way to gain valuable work experience while also attending High School. This program assists students in gaining valuable work skills and exploring career alternatives, earn money while learning a trade, gain high school credits and have the support of employer and teachers to learn their chosen trade while completing their high school education. A more detailed review of this programs structure is needed to understand opportunities in improving apprenticeship participation rates, particularly for women and Yellowknives Dene First Nation members.

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Action #2.1 – Polytechnic University

What Why How

Lobby for equal The GNWT’s working paper’s proposed inclusion of NWT 1. Advocacy – Advocate the GNWT to ensure that members of the representation residents, including five local Indigenous representatives, within polytechnic board include representation from the City and First of the City and the board is extremely promising at allowing local Nation. First Nation on representatives to shape the future college and influence study 2. Monitoring & Lobbying – On an ongoing basis. Provide governance areas that represent needs. These representatives will have a say comments and input to program development. board as in curriculum needs. identified in discussion paper.

Risks Mitigation

1. Governance changes may impact the autonomy of the university. 1. Monitor consultation efforts closely. 2. Poor demand forecasting – Proposed study areas may not reflect future 2. Utilize insights from entrepreneurship data gathering efforts to better gage workforce needs as they are based on a territorial labour market study labour force needs. done in April 2016. 3. Be resilient and push for change despite resistance. 3. Risk adverse – Internal decision makers are risk adverse and progress will be stalled.

Cost Implementation Economic Impact Alignment with Existing Strategies Social/Cultural Impact $

Low cost Long term High High High

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Action #2.2 – Increasing Participation of Skilled Trades Programs

What Why How

Lobby the The region is facing a skilled trades shortage and must act to ensure 1. Establishing a Career Development Officer – Within the City Apprenticeship that there is higher completion and participation rates in the ATOC of Yellowknife or Yellowknives Dene First Nation to better Trades and Exam. Improving how the ATOCB advertises, supports and administers service local needs. Occupation the exam is critical in improving talent supply to the region. 2. Lobbying and Monitoring – ATOCB to obtain statistics on Certification enrolments and completions and monitor to see if conversion Boar to improve rate is improving. operating model. 3. Consultation – The current ATOC Strategy Certification strategy 2017-22 is expiring soon, so there is opportunity for the City and First Nation to participate in the consultation during the next strategy formation.

Risks Mitigation

1. Push back from the ATOCB. 1. Expiry of strategic plan in 2022 offers opportunity to get involved in consultation efforts for the future plan. 2. Limited ability for First Nation and the City to influence change. 2. Stronger together: voices will be heard by collaborating.

Cost Implementation Economic Impact Alignment with Existing Strategies Social/Cultural Impact

$$ Short term High High Medium cost Medium

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Action #2.3 – Work Integrated Learning Opportunities

What Why How

Support and Work Integrated learning is an essential step in ensuring student 1. Document all programming. enhance work- participation in internships and apprenticeships, helping them stay 2. Streamline processes – For employers and students to integrated learning motivated and providing them with an insight into possible participate in work integrated learning opportunities in an opportunities such employment pathways. effort to maximize participation and improve participant as co-ops and experiences (e.g. financial incentives etc.). internships to strengthen 3. Collaborate – With secondary schools to integrate practical graduate and local shop classes that include job camps, job shadowing, guest employer relations. speakers and pre-apprenticeship programs, and programs to showcase alternative learning pathways and career exploration opportunities. 4. Funding – Investigate applying for funding under the Strategic Workforce Initiatives (SWI) to initiate one of these projects to help develop a reactive labour force.

Risks Mitigation

1. Requires significant collaboration, planning and funding. 1. Perseverance: the outcome is worth the effort. 2. Consensus – Not all stakeholders will be on board. 2. Planning and communication will win most stakeholders over.

Cost Implementation Economic Impact Alignment with Existing Strategies Social/Cultural Impact

$

Low cost Short term High Medium High

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Action #2.4 – Regional Collaboration

What Why How

Collaborate with Many stakeholders within the region are attempting to address the 1. Investigate – Commission an organizational review to assess regional partners skills gap. Collaborating helps to assess viable initiatives and identify the work that is being done and opportunities for increased and businesses to overlap. Stakeholders include: collaboration and reduced duplication of efforts. develop student ▪ The Mine Training Society (MTS) 2. Monitor Success Rates – Ensure monitoring is done to see engagement what is working and what is not. strategies. ▪ Skills Canada NWT ▪ Aurora College ▪ Trades, Apprenticeship and Industrial Training and NWT & Nunavut Construction Association ▪ The Yellowknife Makerspace ▪ Habitat for Humanity NWT ▪ Dechita Naowo & Native Woman’s Association ▪ Dechinta University – Centre for Research and Learning

Risks Mitigation

1. Not enough internal manpower to manage working groups. 1. Prioritize staff resources such that high impact initiatives are effective. 2. Difficulty in obtaining consensus. 2. Start small with one or two partners and then expand.

Cost Implementation Economic Impact Alignment with Existing Strategies Social/Cultural Impact $

Low cost Short term Medium Medium High

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Strategic Direction 3: Tourism This Strategic Direction includes actions that will assist the region’s tourism economy in recovering from the COVID-19 pandemic. It also aims to prepare the sector to act as an essential economic pillar of the future economy, reducing the reliance on the volatile mining and mineral sector.

Context – Pre-COVID-19 The background research and industry consultations highlighted the importance of the tourism sector pre-COVID-19. The sector was thriving with the GNWT generating $210 million in visitor spending in the 2018-19 fiscal year, and the Yellowknife Airport recording an 81% (52,392 people) visitor number increase over 6 years, totaling 117,030 in the 2018- 19 fiscal year.14 15 It was also noted that the Indigenous tourism sector is an important segment, with the Canadian market increasing by 23.2% between 2014 and 2017, going from $1.4 billion to $1.7 billion. When compared to the 14.5% increase in overall tourism activity in Canada this growth shows the considerable potential of Indigenous tourism.16

14 The Government of the Northwest Territories, Northwest Territories Visitor Spending, 2019 15 The Government of the Northwest Territories Tourism Research, Yellowknife Airport Non-Resident Visitor Origin by Country, 2019 16 Conference Board of Canada & Indigenous Tourism Association of Canada, Canada’s Indigenous Tourism Sector – Insights and Economic Impacts, May 2019

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Context – COVID-19 Impact COVID-19 devastated the tourism economy globally. Because of a strong reliance on Chinese and other East Asian visitation the impact of COVID locally was felt as early as December 2019. Data published by NWT Tourism estimated that as of the end of March 2020, the territory lost around $18 million in direct visitor spending. Furthermore, the industry body estimates that an additional $170 million will be lost by the end of December 2020. Financial support for local operators has been significant at a national, territorial and local level and must be continued.

Context – Visitor Centre A temporary Yellowknife Visitor Centre is currently run out of the lower level of City Hall. The previous Northern Frontier Visitors Centre, located near the Prince of Wales Northern Heritage Centre, shut in May 2017. In April 2020, the building was demolished. The City of Yellowknife’s 2018 Visitor Services Strategy suggests city-central visitor centre in association with the Yellowknife Chamber of Commerce would be a good option because it would be downtown, cost-efficient, and build on other synergies in the downtown area. Similarly, the 2019 City of Yellowknife Downtown Retail Revitalization Strategy recommends relocating a future information centre downtown to generate more foot traffic for surrounding businesses and attractions.

Context – Tourism is Changing Tourism is changing, influenced drastically by the COVID-19 pandemic and rapid advances in technology. To ensure the community is ahead of the curve, investment into interactive technology-fused tourism experiences is required.

Context – Tourism & Culture This strategic direction also acknowledges the importance of culture in the development and ongoing success of this Joint Economic Development Strategy. Some actions were designed to meet this criterion (e.g. Action #3.3 Friendship Festival). This action plan also indicates a relative social/cultural impact for every opportunity as one of three prioritized assessment criteria. Overall, it is important to acknowledge that while it is difficult to prioritize social and cultural development over direct economic development opportunities, it does not mean it is impossible. Joint social and cultural development is a backbone of the three Strategic Directions.

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Action #3.1 – COVID-19 Recovery and Support

What Why How

Continue promoting Operators must understand what and how to access resources 1. Monitor – Regularly monitor federal/territorial/local funding updates. COVID-19 financial they. Significant work is already underway and should continue to 2. Update – Reflect updates on relevant stakeholder webpages. support programs. be promoted (e.g. CanNor’s Northern Business Relief Fund (NBRF) & the additional allocated funding under the Support for Entrepreneurs and Economic Development Policy (SEED) program).

Conduct Business Continual monitoring of tourism business health is essential to 1. Survey – Considering conducting a bi-monthly business outreach retention and retaining businesses in the local economy. Understanding which survey to assess local tourism needs. Expansion (BR&E) businesses are planning to expand or leave the region helps in 2. In-person visits – Face-to-face is more effective. efforts. outreach and communication efforts.

Continue Partnership Solid progress has already been made in terms of broad 1. Monitor – Existing collaboration and COVID-19 response initiatives and collaboration. collaboration to recover from the pandemic. This work should adjust as required. continue for the foreseeable future.

Risks Mitigation

1. Overlap between different business services. 1. If overlap is identified, consider terminating that support. 2. Difficulty coordinating efforts. 2. Open dialogue is essential.

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $

Low cost Short term High High Medium

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Action #3.2 – Joint Visitor Centre Development

What Why How

First Nation and City to As no official plans/tenders have been proposed for the new 1. Governance model – Establish a Tourism Advisory Committee with investigate visitor centre there is opportunity for Yellowknives Dene First members appointed by City and First Nation Councils and collaboration on the Nation to participate in the creation, branding and facilitation of representative of a cross section of tourism-related businesses. proposed downtown this visitor centre. The centre can serve as a symbol of the regions 2. Establish funding partnerships – The City could lead the funding of visitor centre. united partnership and commitment towards reconciliation, Visitor Centre operations, but exploring opportunities for funding cultural tourism development and partnership. partnerships should be established in the short term. Funding for Funding for this visitor centre would likely be led by the City of setting up the physical space could be obtained through CanNor’s Yellowknife, as it is already an ongoing effort at the City. IDEANorth Stream 3. However, there may be opportunities for funding partnerships 3. Ongoing operations – Staffing the visitor centre and providing an with the Chamber of Commerce, CanNor and Yellowknives Dene engaging visitor experience will be an ongoing consideration. First Nation. Preference should be given to hiring Yellowknives Dene First Nation members to staff the space.

Risks Mitigation

1. GNWT not willing to collaborate on the joint project. 1. Ensure open dialogue and clearly explain value proposition. 2. Unsafe downtown – The 2017 City of Yellowknife Citizen Survey identified 2. Progress: This initiative is the first step to making the downtown safer. downtown as perceived as being ‘unsafe’.

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $$$

High cost Short term High High High

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Action #3.3 – Friendship Festival

What Why How

Jointly host a First This joint economic development strategy marks the culmination 1. Identify potential dates – Host event post COVID-19 when significant Nation-City festival to of years of reconciliation progress between Yellowknives Dene progress has been made on actions within this strategy. celebrate progress First Nation and City of Yellowknife. The aim of this festival is to: 2. Formalise an events committee – The committee should be responsible made of the Joint ▪ Educate locals on the work that has been made and the long for gathering funds, identifying location and all other organizational Economic road ahead. matters. Development Strategy and other initiatives. ▪ Renew local optimism regarding the partnership and 3. Community/Media engagement – Community buy-in and promotion is reconfirm that the partnership is founded on a pillar of essential. social/cultural appreciation. 4. Event continuation – Consider running annually/bi-annually to continue ▪ Attractive positive media attention to the region. celebrating reconciliation efforts.

Risks Mitigation

1. Obtaining joint buy-in could be difficult but is doable. 1. Clear communication of the vision is important. 2. COVID-19 – Length of pandemic is difficult to predict. 2. Be adaptable: Events management is typically an exercise in flexibility. 3. Detailed planning, budgeting and use of partners resources.

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $$

Moderate cost Short term Medium High High

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Action #3.4 – Culture Training & Certification

What Why How

Work with tourism ▪ During stakeholder consultation, a common discussion was 1. Engage First Nation members to inform content – Use Tourism partners to develop an that front-line workers (e.g. taxi drivers, restaurant staff, Advisory Committee to oversee development of content. Indigenous Culture tourism operators etc.) are the first point of contact with 2. Develop curriculum – Informational print content (brochures or Training and visitors and shape their impression. Many are not aware of postcards) and online training modules. Certification. Yellowknives Dene First Nation history, language and culture and unintentionally spread misinformation on the history of 3. Engage local operators – Informational print material could be the region. distributed to local operators. Online training modules on Yellowknives Dene First Nation history that culminates in a certificate should be ▪ Developing a cohesive tourism brand and experience advertised to operators. An incentive such as a prize for completion between the First Nation and the City will require outreach could be used to encourage buy-in. to those workers to ensure that visitors are receiving consistent messaging.

Risks Mitigation

1. Obtaining tourism buy in and support may be difficult. 1. Clear explanation of importance of a unified tourism brand. 2. Incentivize certification completion with prizes: free ad space, local gift cards for operator staff, etc.

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $

Low cost Short term Medium High High

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Action #3.5 – Creating the Tourism Experience of Tomorrow

What Why How

Work to create an augmented Augmented reality is a new technology disrupting the tourism sector 1. Research augmented reality tourism case studies and reality visitor experience. that compliments existing offerings. Possible opportunities include: determine product need. 1. Checkpoints – Allow visitors to navigate around Yellowknife, Ndilo 2. Community collaborating – Be creative in getting the local and Dettah to locate ‘checkpoints’ – places of notable significance – community involved in pinpoint the type of attraction you where they can interact with the product via their smartphones. want. This could be an excellent way to educate on Yellowknives Dene 3. Implementation – Hire a talented Augmented Reality and First Nation culture and language, promote the region and more. Tourism contractor to set up the experience. 2. Interactive education – Incorporation of technology at high density areas (e.g. airport and visitor information area) increases usability and education potential.

Risks Mitigation

1. Upfront costs may be steep. 1. Conduct in-depth research of cost implementation based on other case studies. 2. Requires broad collaboration to ensure content is high quality and accurate. 2. Use Tourism Advisory Committee to fuel collaboration.

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $$

Moderate cost Medium term High High High

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Action #3.6 – Product Development and Branding

What Why How

Rebranding of Yellowknife ▪ Stakeholders indicated that Yellowknife Airport currently 1. Identify main decision makers (e.g. GNWT, Airport, City). Airport Welcome Display. misrepresents Yellowknives Dene First Nation culture (e.g., images 2. Utilize local resources and talent – In designing art displays, of a polar bear). The aim is to incorporate interactive technology First Nation elders to document history and language. elements to make the visitor experience memorable.

Explore creating a departure ▪ Consultation identified potential to engage with visitors at 1. Collaborate – Among regional tourism organizations, local airport display. departure airports to increase brand reputation and create a operators and airport officials to identify potential. positive visitor experience. 2. Utilize local resources – In design display.

Support creating a mining ▪ Pre-COVID-19, Rio Tinto planned to lunch a mining tourism 1. Analyze – Existing mining tourism products. tourism experience. operation at its Diavik Mine which was promising to diversify the 2. Connect third party tourism operators with mines – Use industry. connections to establish open communication channels.

Explore new branding ▪ Potential to explore branding around, “Exploring the twinkle in the 1. Brainstorm – Existing mining tourism products. initiatives. sky and sparkle underground” – a reference to the Aurora Borealis 2. Promote – Via existing channels/organizations. the presence of diamond mining.

Risks Mitigation

1. Limited time and human resources to dedicate to the initiative. 1. Leverage partner resources

Cost Implementation Economic Impact Alignment with Existing Social/Cultural Impact Strategies $$

Moderate cost Medium term High High High

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YKDFN and City of Yellowknife Joint Economic Development Strategy MDB Document Title

MDB Month & Year

Contents

Appendix A: Yellowknives Dene First Nation Action Plan Comments ...... 2 Appendix B: Strategic Sectors of Interest ...... 6 Appendix C: Long List of Economic Opportunity Areas ...... 23 Appendix D: Economic Base Analysis ...... 38 Appendix E: Background Document Review ...... 62 Appendix F: PlaceSpeak Survey Results ...... 82 Appendix G: Business Satisfaction Survey Results ...... 91 Appendix H: Stakeholder Interview Key Themes ...... 106 Appendix I: Targeted Workshop Key Themes ...... 109

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 1

Appendix A: Yellowknives Dene First Nation Action Plan Comments In addition to the broad strategic directions and priority actions identified, there were several smaller action items identified by Yellowknives Dene First Nation stakeholders during the strategic planning process. While valuable, these actions were deemed non-priority and so were not included within the main strategic report as the suggestions were generally smaller in scope, either extremely time or location specific, and generally were geared towards one stakeholder group. In other words, these actions and suggestions did not qualify as being joint leavers towards economic development that both the City of Yellowknife and the Yellowknives Dene First Nation have direct control over. The following table lists all of these additional, non-priority action items, as they are still invaluable for local economic development officers to consider when conducting business planning activities.

Relating Action Actions and Suggestions Item

Action 1.1 – ▪ Conduct tradeshows to attract people to events. Entrepreneurship ▪ Leverage to better market Yellowknives Dene First Nation to outside Hub investors. ▪ The hub should include programs related to hunting and trapping. ▪ The hub must focus on sustainability and knowledge sharing. ▪ The hub’s location must be easily accessible for people with transport limitations. ▪ Leverage external resources, do not reinvent the wheel. ▪ A subbranch or office could be established in Ndilo. ▪ The hub should offer workshops for youths. ▪ Membership fees should be waived for local income or disadvantaged groups.

Action 1.2 – Data ▪ Consider implications of data ownership and privacy. Collection and ▪ The information must be protected and not shared. Management ▪ YKDFN data collection should include the member spouse and location of where they live to better understand household income and demographics. ▪ It is essential to collect data on YKDFN employment as this is currently a data gap. ▪ Develop a data bank on students who have graduated and their current employment level. Use this information to create more tailored education programs.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 2

Relating Action Actions and Suggestions Item

Action 2.1 – ▪ There must be cultural components included in the creation of the Polytechnic polytechnic university, specifically indigenous language. University ▪ Consider incorporating Indigenous cultural elements in the building structure (e.g. tepee styled structure). ▪ Lobby for better post-secondary programs to encourage more people to take educational courses (e.g. social work program, hospitality courses etc.). ▪ It is essential that Yellowknives Dene First Nation should have representation in the creation of university and course content. ▪ Investigate incentives to reduce education staff turnover as this disrupts student learning. ▪ Investigate if the Polytechnic University could be built in Chief Drygeese Territory (e.g. junction of Dettah and City limits, behind legislative assembly etc.).

Action 2.2 – ▪ Programs should include Yellowknives Dene First Nation traditional skills such Increasing as: woodworking trade, bush skills, canoe making, totem poles, drums etc. Participation of ▪ Focus must be on encouraging individuals to participate on their own and Skilled Trades then start businesses upon graduation. Programs ▪ Investigate entrepreneurship support post-graduation from the program. ▪ Lobby government to assist in attracting more First Nation participants. Participation in the process must be made easier. ▪ Greater access to trades for First Nation members would decrease social issues, poverty and homelessness. ▪ Investigate ways for Yellowknives Dene First Nation to administer programs for training. ▪ Yellowknives Dene First Nation must be included and involved in training creating and instruction. ▪ Work on partnership development.

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Relating Action Actions and Suggestions Item

Action 2.3 – ▪ Must focus on high school opportunities as this sets student up to succeed Work Integrated later in life. Learning ▪ Investigate developing an employment program on the land, focused on Opportunities learning about the traditional economy. ▪ Need greater access to on-the-job training. ▪ Need to include succession planning when developing these opportunities. ▪ Develop more short upskilling courses.

Action 2.4 – ▪ Organizations must work together to collaborate, share information and best Regional practices. Collaboration ▪ Focus on getting more Yellowknives Dene First Nation representation in these regional collaboration efforts.

Action #3.1 – ▪ While the entrepreneurship hub is being developed, there needs to be a COVID-19 centralized place for businesses to obtain information on starting a business. Recovery and ▪ Continue offering current financial support programs. Support

Action #3.2 – ▪ Include a space for Yellowknives Dene First Nation history within the centre. Joint Visitor ▪ Focus on Yellowknives Dene First Nation cultural incorporation and Centre branding (e.g. Yellowknives Dene First Nation flag should hang outside of Development the building.) ▪ Investigate using the centre as a cultural centre. ▪ Utilize the space as a centre for education and learning. ▪ Include a place to talk about the legacy and impact of the Giant Mine on the Yellowknives Dene First Nation’s people and broader economy. ▪ Focus on employing both Yellowknives Dene First Nation and Yellowknife residents.

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Relating Action Actions and Suggestions Item

Action #3.3 – ▪ The celebration needs to be specific and clear what is be celebrated – the Friendship working group should define that. Festival ▪ This should be an annual festival where First Nation members and Yellowknife residents work together to build friendship and trust. ▪ Investigate funding sources and sponsorship to ensure the event is successful long term. ▪ The event should include Indigenous vendors, arts and crafts, and food. ▪ Investigate publishing a joint report or magazine publishing joint activities and successes between the City of Yellowknife and Yellowknives Dene First Nation.

Action #3.4 – ▪ Focus on creating a licencing program for tourism businesses operating on Culture Training Yellowknives Dene First Nation land or selling products or services related to and Certification indigenous culture.

Action #3.5 – ▪ Focus on creating a Dene resource centre. Creating the ▪ Investigate creating a cultural immersion app that teaches visitors about Tourism Yellowknives Dene First Nation history and culture. Experience of Tomorrow

Action #3.6 – ▪ Need to add more indigenous structures within the city as a tourism Product attraction. Development ▪ Focus on more co-brand development initiatives. and Branding ▪ Remove the polar bear from the Airport. ▪ Develop a sign and monument at the Tlicho border that says, “Welcome to Chief Drygeese Territory”. ▪ Prioritize airport redesign.

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Appendix B: Strategic Sectors of Interest

Export Development and Import Substitution – Initial Sector Research

In order to create a robust economic development strategy which builds on the unique assets and resources of both the Yellowknives Dene First Nation communities and the City of Yellowknife, initial sector research was conducted. The purpose of this sector research was to better understand the major and supporting economic drivers within the region, and how these sectors changed (e.g. in light of COVID-19), and some initial opportunities and best practice research on how best to recover from the global pandemic.

These key sectors for economic growth were initially identified throughout the background analysis and stakeholder engagement process and are pictured in Figure 1. They are categorized as Core Economic Drivers – those key sectors that pour external or new money into the economy – and Supporting Economic Drivers – those smaller and ancillary sectors of the economy that are still a vital component of economic growth. It is important to note that this research was conducted at the height of the COVID-19 pandemic. Overall, this research helped to form the long list of 10 economic development opportunities presented in the final report. The final three strategic directions were then decided during a full day workshop (Selection of Future Directions Workshop 3), with senior members of Yellowknives Dene First Nation and City of Yellowknife leadership teams. Figure 1: Economic Drivers for the City of Yellowknife and Yellowknives Dene First Nation

Supporting Economic Driver Core Economic Driver Agriculture, Fur and Mining Fisheries Sector

Core Economic Driver Core Economic Driver Tourism Local Government Services Economy

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Tourism

Pre COVID-19 – A Thriving Industry Before the COVID-19 pandemic, tourism within the Northwest Territories (NWT) was experiencing rapid growth. It was considered by the Government of the Northwest Territories (GNWT) to be a key driver of economic diversification. The sector was a bright hope for the region, offering new opportunities for small businesses and workforce growth that was not reliant on the important, yet cyclical mineral sector. In 2018-19 both the Northwest Territories and the Yukon recorded record visitor numbers, with the GNWT generating $210 million in visitor spending in the 2018-19 fiscal year, three years earlier than their 2021 target of $207 million.1 Within Yellowknife, statistics on the arrival of visitors to Yellowknife Airport showed that over six years, visitor numbers increased by 81% (52,392 people), totalling 117,030 in the 2018-19 fiscal year.2 An influx of East Asian travellers caused this record-setting growth (e.g. China, Hong Kong and Japan), with nearly two and a half times more Chinese visitors recorded in the 2018-19 fiscal year than the second-largest market, Japan. Figure 2: International Visitor Origin by Top Countries, Yellowknife Airport

25,000

20,000

15,000

10,000

Internatioanl Internatioanl Numbers Visitor 5,000

- 2014-15 2015-16 2016-17 2017-18 2018-19 Fiscal Year

US Japan China Korea Australia

Source: Adapted from Government of Northwest Territories Tourism Research, 2019

1 The Government of the Northwest Territories, Northwest Territories Visitor Spending, 2019 2 The Government of the Northwest Territories Tourism Research, Yellowknife Airport Non-Resident Visitor Origin by Country, 2019

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From a recreational perspective, the primary purpose of visits to the region was for Aurora Borealis viewing. The number of tourists increased by 153% over the past five years to 41,500, generating $67.70 million in visitor spending. General touring was another popular reason to travel with 17,900 visitors in 2017-18 or $17.80 million in spending (see Fig. 5). Business Travel is another lucrative sector of the visitor economy for the region generating the majority ($79.4 million) of revenue. Overall, the immense value that the tourism sector offers the City of Yellowknife and the communities of the Yellowknives Dene First Nation and that investigating the potential to grow these core sectors should be a focus of this joint economic development strategy. Figure 3: Northwest Territories Visitor Spending (millions), 2019

$10.9 $7.4 $11.6

$15.6 $79.4

$17.8

$67.7

Business Travel Aurora Viewing General Touring Outdoor Adventure Fishing Visiting Friends and Relatives Hunting

Source: Adapted from Government of Northwest Territories Tourism Research, 2019

Indigenous Tourism Growth Regarding indigenous tourism, specific visitor numbers or spend within the Yellowknives Dene First Nation communities were not available. Better data gathering for all tourism activities outside of Yellowknife, particularly those within the Yellowknives Dene First Nation communities, is an opportunity for improvement. However, recent research from the Conference Board of Canada and the Indigenous Tourism Association of Canada (ITAC) found that pre-COVID-19, the national indigenous tourism sector, was outpacing Canadian tourism activity overall.3 Key findings from the research indicated that the direct economic benefits (e.g. the money initially spent for salaries, supplies, raw materials and other operating expenses) creates additional activity in the local economy. Gross Domestic Product (GDP) attributed to the indigenous tourism sector in Canada increased by 23.2% between 2014 and 2017, going from $1.4 billion to $1.7 billion. Compared to the 14.5% increase in overall tourism activity in Canada, this growth shows the considerable potential of the Indigenous tourism sector (Figure 4).

3 Conference Board of Canada & Indigenous Tourism Association of Canada, Canada’s Indigenous Tourism Sector – Insights and Economic Impacts, May 2019

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Figure 4: Reported Indigenous Tourism Progress on Key ITAC’s 2024 Goals

2014 Measures Estimates 2017 Estimates 2024 Goals Direct employment - peak employment (000s)* 33.1 39 49.4 Direct GDP ($ billions)** 1.4 1.7 2.2 Export-ready businesses (number) 80 133 200 *The 2015 report excluded Indigenous tourism businesses in the Northwest Territories. **The 2015 report reported standardized employment estimates as full-time-equivalent jobs and not as full-year jobs. The 2015 report produced GDP estimates in 2014 $ terms. The 2019 report estimates these figures using inflation-adjusted 2017 $ terms Source: Adapted from the Conference Board of Canada & Indigenous Tourism Association of Canada.

Key Tourism Challenges Sustainable Tourism Growth Pre COVID-19, a key challenge facing the City of Yellowknife and Yellowknives Dene First Nation was limited accommodation space.4 For example, during prime aurora viewing periods such as late September and December to January, the City of Yellowknife saw high occupancy rates. While positive for local businesses, stakeholders interviewed raised concerns regarding the sustainability of this growth and the need for better management of visitor arrivals. The core objective of the sector must be sustainable tourism, where residents are supportive of visitors. Fostering Indigenous Entrepreneurship Entrepreneurship remains an exciting avenue for economic and workforce growth amongst indigenous communities and is rising across Canada. However, according to new research published by the Conference Board of Canada,5 indigenous people accounted for only 2.5% of self-employed Canadians. The report acknowledged that entrepreneurship within indigenous communities, such as the Yellowknives Dene First Nation communities, is an excellent means for allowing individuals to fill a community need, share their culture and knowledge, and increase their financial independence. However, the research also highlights the many obstacles indigenous people face, particularly in remote northern communities. These challenges include insufficient capital, poor business valuations, small customer base, limited to nonexistent infrastructure, and lack of skills and training resources. Some progress is being made to support local entrepreneurs; however, more can be done. For example, in October 2019, two indigenous entrepreneurs from the NWT started a nine-month program through EntrepreNorth, to help them gain core skills needed to start up on-the-land tourism ventures and expand their businesses.6 The Federal Aboriginal Entrepreneurship Program (AEP) also supports Indigenous enterprises by providing access to business opportunities and access to capital streams.7

4 Government of Northwest Territories Tourism Research, Yellowknife Airbnb Information, 2019 5 Government of Northwest Territories Tourism Research, Yellowknife Airbnb Information, 2019 6 CBC, 9 Indigenous entrepreneurs selected for support by EntrepreNorth, 2019 7 Government of Canada, Aboriginal Entrepreneurship Program: Access to Business Opportunities, 2020

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Impact of COVID-19 The implications of COVID-19 for the tourism sector at a global, national, territorial and local level have been unprecedented. During the initial stages of the virus, the temporary closure of borders and enacting of social distancing measures ground a previously booming sector to a halt. For example, data published by NWT Tourism estimates that as of the end of March 2020, the territory lost around $18 million in direct visitor spending. Furthermore, the industry body estimates that an additional $170 million will be lost by the end of December 2020.8 As of November 2020, visitors are allowed to enter the NWT provided they fill out a 14-day mandatory self-isolation form in one of the designated communities. Compared to other Canadian destinations, Yellowknife and Dettah and Ndilo were among the first regions to be significantly impacted by the virus due to the strong reliance on East Asian, particularly Chinese visitors, where the pandemic was first identified. Key Funding Initiatives In the months after COVID-19 first and lockdown measures were enacted (March to June 2020), the GNWT and federal governments introduced various programs aimed at supporting operators during the economic downturn. For example, as of September 2020, over $400 million was provided by the Government of Canada in different stages through the Indigenous Tourism Association of Canada (ITAC), to support indigenous businesses. $16 million in funding was directly focused on supporting indigenous tourism operators9. From an entrepreneur and tourism perspective, the GNWT has also allocated additional funding under the Support for Entrepreneurs and Economic Development Policy (SEED) to help local entrepreneurs and small businesses survive during the pandemic.10 The City of Yellowknife and Yellowknives Dene First Nation are also continuing to work with the GNWT and Federal Government to access appropriate support services and promote local business needs. It is important to note that as the situation and relevant support services are constantly changing, the information above indicate essential programs by the relevant government organizations and is not an exhaustive list.

Opportunities for Recovery The road to recovery for the NWT, City of Yellowknife and Yellowknives Dene First Nation’s tourism sector remains uncertain and may take time to rebound fully. The following section of this report lists opportunities for recovery based on recommendations by the federal and territorial governments, industry experts and international best practices.

8 Government of the Northwest Territories, NWT ‘flying through the abyss’ as it tries to save tour operators, 2020 9 Government of Canada, Government of Canada announces additional support for Indigenous businesses and the Indigenous tourism industry, 2020 10 Government of Canada, Aboriginal Entrepreneurship Program: Access to Business Opportunities, 2020

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Leverage Domestic Tourism As domestic border restrictions begin to lift, there is potential for the Northwest Territories to focus on promoting domestic tourism. This concept of a “staycation” has been gaining traction globally, with many international governments urging residents to explore their own countries backyards and communities for the foreseeable future. Yellowknife, along with other northern communities, is competitively positioned due to its relatively low traffic and COVID-free status, which can serve as a persuasive advertisement in attracting domestic visitors. The GNWT is already considering this action, as seen by the June 4th ,2020 announcement that they plan to allow residents of Nunavut to travel between the territories without having to self-isolate for the mandatory 14-days.11 Embracing Collaboration To successfully recover from the implications of COVID-19, the City of Yellowknife and Yellowknives Dene First Nation must work collaboratively with other tourism partners to create a realistic tourism recovery strategy. As part of this strategy, ensuring there are limited barriers for consumers to purchase travel should be prioritized. As should ensuring public health conditions of entry are clear and easily accessible. At the operator level, it is also crucial that businesses begin to form partnerships and work together, whether this is for marketing activities, product improvement, or cost-sharing. By collaborating, these businesses will create an even more robust tourism offering for when visitors return. Case Studies These case studies reflect some initial COVID-19 recovery ideas and were researched early in the project. These may now be outdated due to resurgences in COVID-19 in many countries globally. International Case Study: Iceland to Open for International Tourists Iceland lifted international travel restrictions on June 15th ,2020.12 The country is giving passengers from select countries arriving in Iceland to choose between being tested for COVID-19 or self-quarantine for two weeks. The first COVID test is at the border on arrival and the second by the primary healthcare service 5-6 days later. In between the 2 tests, arrivals must go into quarantine.

► Relevance for the City of Yellowknife and Yellowknives Dene First Nation Iceland is relatively similar to the NWT in terms of geographic remoteness and the limited number of COVID-19 cases. Overall, the City of Yellowknife and Yellowknives Dene First Nation could lobby the GNWT to implement such a trial system.

11 Government of Canada, Aboriginal Entrepreneurship Program: Access to Business Opportunities, 2020 12 Iceland Tourist Board, Lifting of Travel Restrictions to Iceland – Guidelines to Tourism Companies, 2019

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International Case Study: Japan, Sicily and Cyprus to pay visitors to visit Note: This case study was written before the second wave in many locations. Before implementing, further research is suggested to investigate effectiveness of strategies. Several destinations have experimented with unique ways to attract visitors. For example, Japan looked to boost domestic tourism by subsidizing a portion of travel expenses once the coronavirus outbreak is brought under control. Similarly, in May, 2020 Sicily said it was willing to pay part of a travellers’ post- coronavirus trip, half of their airline ticket and one out of every three hotel nights.13 All entry to museums and archaeological sites will also be free. On the other hand, Cyprus has pledged to cover all costs for travellers who tests positive for the coronavirus while on vacation.

► Relevance for the City of Yellowknife and Yellowknives Dene First Nation While some of the above measures may seem bold, the underlying concept of spending money to entice visitors back to the City of Yellowknife and Yellowknives Dene First Nation is an important observation. As destinations begin to open up, Yellowknife will be hard-pressed to compete with all the other domestic and international destinations desperately seeking visitors. To stand out from the crowd, a financial incentive similar to those explained above could hold considerable merit.

International Case Study: Visit Harghita to offer an online guide of the region To protect visitors and promote potential bookings, Harghita County in central Romania has created an online guide showcasing their destination. Tourists can now virtually visit museums, explore local salt mines in 3D and listen to audio guides about the main tourist attractions in the official mobile application. Overall, the region's strategy is to “Plan now and visit later!”.14

► Relevance for the City of Yellowknife and Yellowknives Dene First Nation There is an opportunity for the partners to collaborate to create a captivating virtual visitor experience. This tool would allow visitors to virtually explore the stunning Aurora Borealis, learn about the unique Yellowknives Dene First Nation culture, and find out more information about the best way to book a trip. The advantage of creating a tool like this is that it has long term value for the region even when the implications of COVID-19 begin to fade.

13 Washington Post, These destinations will basically pay you to come visit during the pandemic, 2020 14 Visit Harghita, Visit Harghita from home, 2020

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Mining Sector

Pre COVID-19 – An Industry in Decline Mining has long been a core economic driver for the NWT economy, with the City of Yellowknife and Yellowknives Dene First Nation heavily relying on the industry for employment and tax revenue. Before COVID-19, the industry was in a state of decline, with the Conference Board of Canada predicting a bleak economic outlook over the coming five years. The Territories' diamond mines had passed peak production, and there was a shortage of replacement projects15. At the time of the report, two of the three diamond mines (Diavik and Gahcho Kué) were slated to close within the next decade. Ekati had planned to continue to operate into the late 2030s if the proposed open-pit was approved. The report also predicted a shift in mineral extraction from gold mining to metals (e.g. zinc and cobalt), intending to make electric batteries for cars. The predicted decline in the mining sector was expected to harm Gross Domestic Product (GDP) growth over the following five years, with estimated growth rates of only 2% for the first two years and several years of negative growth (see Figure 5). As mining is a core sector for jobs within the region, the predicted slowdowns were expected to drastically harm the local economy and put additional strain on government finances. Support sectors, such as construction, were predicted to be hit hard with declines of up to 40% by 2040. For the Yellowknives Dene First Nation, mining is equally crucial, with many jobs relying on the sector. Det’on Cho Management LP is a major employer with between 600-800 employees (80%, of whom are northern) working in 15 companies across the region. The Corporation, which generated more than $56.5 million in revenue in 2019, is heavily reliant on the local mining sector to fuel growth for most of its 15 companies. As of the publication of their 2019 annual report, the corporation was relatively positive about the region's economic outlook. Figure 5: Real GDP Growth Forecast – NWT

2.5% 2.1% 1.3% 1.1% -3.0% -3.1%

2019 2020 2021 2022 2023 2024

Source: Adapted from the Conference Board of Canada, 2019.

15 Conference Board of Canada, Territorial Outlook Economic Forecast: Summer 2019, 2019

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Post COVID-19 – An Industry in Distress Update: As of the 9th of October, the proposed $166 million sale of the Ekati mine by Dominion Diamond has been canceled due to an impasse in negotiations. No other bids have been disclosed at this time. In the aftermath of COVID-19, one of the most concerning issues for the Yellowknife region will be the potential closure of the Dominion Diamond Mine. The company, which owns the Ekati mine and has a 40% stake in Diavik, faces financial ruin due to a collapse in its cash reserves. The company currently has over $1.2 billion US in debt and is actively trying to prevent closure by refinancing its debt to keep the mines running16. COVID-19 has had a severe impact on the global diamond industry, with closures along Dominion’s supply chain leaving it with $180 million US in unsold diamond inventory (see Figure 6). The implications of the pandemic, combined with a decade of falling diamond prices (nearly by a third), a glut on the market and the rise of synthetic diamonds, means the industry overall is at risk. Figure 6: COVID-19 Impact on the Global Diamond Supply Chain

Source: Adapted from CBC News, 2020

16 CBC News, The downfall of Dominion Diamond, 2020

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As a key employer, many residents are concerned about the implications for jobs if the mines close. Furthermore, Det'on Cho Management LP is Dominion's largest northern creditor, owed about $5 million. Although a considerable amount, Det'on Cho Management LP, is more concerned about the long-term implications if mines in the region close, with most businesses and local employment relying on the sector. Key Challenges and Opportunities for Growth Gold and, more recently, diamond mining have been core pillars of the NWT economy over the past two decades. However, in the face of scheduled mine closures over the next ten years, mining exploration being below historic highs, and the Mackenzie Valley Pipeline Project not advancing to production, it is evident sector diversification is required. It is important to note that work is currently underway to explore conservation efforts, as is highlighted in the Northwest Territories Economic Opportunities Strategy and the local Yellowknife region.17 The following lists key issues and potential opportunities for diversification within the mineral sector over the coming years. Promoting Exploration Many challenges that mineral companies face originate from conflicts at the exploration stage, according to research conducted for the GNWT by Andrew Bauer.18 Clauses for exclusive exploration rights already exist within the NWT (e.g. acquisition and prospecting permits), but more work can be done. Potential reforms could include better pre-screening of companies, greater consultation at the exploration phase and allowing for community input on claims that raise concern. Furthermore, investigating regulatory reform regarding the incentives provided for exploration could be conducted. For example, many claims can be delayed for years and poor transportation infrastructure limits companies’ ability to conduct exploration. Greater financial incentives could potentially be investigated depending on the economic climate.

Relevance for the City of Yellowknife and Yellowknives Dene First Nation By lobbying and working more closely with the GNWT, both the City and First Nation could significantly benefit from changes in regulation that result in more business activity in the sector.

Land Rights Another barrier preventing sector growth is regulatory uncertainty regarding land claims, which discourages exploration. The finalization of the Akaitcho land claim proceedings, which were started in the early 2000s, will help to attract potential investors within the mineral sector and support Yellowknives Dene First Nation’s economic diversification.19

Relevance for the City of Yellowknife and Yellowknives Dene First Nation Finalizing land claims will help Yellowknives Dene First Nation develop other areas of their economy. For example, the development of affordable housing and the investigation of a joint marina.

17 Government of the Northwest Territories, Economic Opportunities Strategy, 2019 18 Andrew Bauer, NWT Mineral Review and Benchmarking 19 CBC News, Akaitcho process expected to be finalized in a year, says negotiator, 2019

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Clean Energy Diversification With the declining outlook for the mining sector, there is a growing potential to explore diversification into the clean energy sector. David Connelly, a community relations person with Terra X minerals and a board member at Avalon Rare Metals, believes that as more mining companies join carbon disclosure programs, there will be increased pressure to source clean energy.20 To continue to attract investments within the mining sector over the existing long-term, companies must start to bring clean power to the north. Industry support by the City of Yellowknife and Yellowknives Dene First Nation is essential to making progress in this area. In early 2020, there was also support from an NWT MP for the Green New Deal. An NDP initiative, the Green New Deal legislation in Canada seeks to achieve net-zero greenhouse gas emissions and create new, high-wage jobs for all Canadians. It calls for a 10-year national mobilization that will build resiliency against climate-related disasters and meeting 100% of the power demand in Canada through clean, renewable and zero-emission energy sources.21

Relevance for the City of Yellowknife and Yellowknives Dene First Nation Potential to lobby the GNWT on clean energy diversification via support for green initiatives.

Agriculture, Fur and Fisheries Sector

Sector Overview Agriculture Agriculture forms a small but essential part of the regional economy. The local food production sector has grown dramatically in the last decade, and the agriculture sector in total generates about $8-10 million in income per annum. As with many communities, Yellowknife is highly reliant on imported foods from other parts of Canada and the world. Food security concerns have been further highlighted by poor local infrastructure to support agricultural and harvesting activities, a global economy that is prioritizing agricultural control out of the hands of local farms, rising income inequality, food prices and the growing threat of climate change . All of these factors have further accelerated food prices increases, with research by NWT Bureau of Statistics22 in 2017 finding that the average household in Yellowknife spends $11,690 per year on food, which is $3,163 more than the average Canadian household (Figure). Agriculture in the NWT encompasses a range of food and activities, including growing fruits and vegetables, composting, farming, gathering wild herbs and plants for food and medicinal purposes, raising livestock and harvesting honey. From an economic perspective, this reliance on agricultural imports is largely negative for the local economy, as the money spent on food products leaves the community, in addition to the long-range carbon impacts of extended supply chains. This reliance is why there has been a push from the GNWT,

20 My Yellowknife Now, Mining industry in dire straits, asks for city support, 2019 21 House of Commons Canada, Notices of Motions – Public Bills (Commons), 2019 22 NWT Bureau of Statistics, Household Expenditures, 2017

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City of Yellowknife and Yellowknives Dene First Nation to develop strategies for the agriculture sector. These strategies reflect the significant economic potential locally owned and operated food and agricultural businesses, including fisheries, can have when money is kept within the local economy. The multiplier effects continue to circulate, adding value to other businesses, which, in turn, increases the resiliency of the regional economy. The recent pandemic has further heightened the fragility of global food supply chains and the growing need and desire by residents to increase local food resiliency. Overall, the territory has 32 community gardens and 25 community greenhouses, according to the Department of Industry, Tourism and Investment's website.23 Figure 7: Average Household Expenditure, by Component Summary Statistics: 2017 Canada, Northwest Territories and Yellowknife

Average Household Expenditure Canada ($) Yellowknife ($) Total expenditure 86,070 132,772 Total current consumption 63,723 93,354 Food 8,527 11,690 Shelter 18,637 30,146 Household operation 4,827 6,963 Household furnishings and equipment 2,314 3,441 Clothing and accessories 3,430 4,831 Transportation 12,707 18,966 Health care 2,579 2,384 Personal care 1,300 1,788 Recreation 3,986 6,910 Education 1,777 1,194 Reading materials and other printed matter 158 246 Tobacco products and alcoholic beverages 1,497 2,040 Games of chance (net) 200 186 Miscellaneous expenditures 1,785 2,566

Source: Adapted from the NWT Bureau of Statistics, 2017. Commercial Fishing Production from the commercial freshwater fish industry has been steadily declining since its peak in 2001/2002. However, the industry has experienced an increase in sales of 61 percent over the previous year and was valued at $817,000. The NWT supplies approximately one percent of Canada’s freshwater fish. Whitefish is commercially harvested from Great Slave Lake and makes up 81 percent of the lake’s total harvest. Whitefish volumes are increasing over recent lows. Fur Trapping Fur trapping also is an important income source for local indigenous peoples and has seen a spike in demand in source markets such as Russia and China. For example, muskrats are in surprisingly high demand, and on average, the price per pelt has doubled since 2009. There are opportunities for Yellowknives Dene First Nation to continue to expand its fur-trapping business.

23 NWT Industry, Tourism and Investment, Agriculture Sector Profile

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Review of Key Territorial and Local Agricultural Strategies As part of this economic review, analysis of key agricultural sector strategies was conducted to understand current strategic thinking in the sector and which additional opportunities should be pursued. NWT Agricultural Strategy 2017 – 2022 The need to develop an inaugural agricultural sector strategy was identified as a key priority for the region within the 2013 NWT Economic Opportunities Strategy (EOS).24 In 2017, the NWT Agricultural Strategy 2017 – 2022 strategy was then published and painted a vision of “increasing the diversity, amount and value of foods and goods produced through the development of a safe, self-reliant, environmentally sound agriculture sector, for the betterment of all communities and residents in the Northwest Territories.” It included six pillars of action that focused on developing and supporting the needs of a commercial sector engaged in food production, processing and secondary industry development support (Figure 8). Figure 8: Vision for the Food NWT Production Industry

Source: Adapted from the GNWT Agricultural Strategy, 2017. The strategy references the importance of respecting the indigenous values and community and how land management is strongly linked to indigenous land claim proceedings. It urges municipalities across the region to collaborate with local indigenous groups (e.g. Yellowknives Dene First Nation) to co-create agricultural opportunities over the long term. The report also highlighted the need to enhance local training resources to ensure talent has the knowledge to capitalize upon agricultural opportunities. Furthermore, an increased partnership between the GNWT and local bodies (e.g. the City of Yellowknife and YDKFN) is stressed as critical to ensuring action occurs in the region. Overall, the key takeaway is that partnership and better training will help fuel sector growth, leveraging the $1.21 million, which has been allocated annually under the Canadian Agricultural Partnership to support the growth of agriculture in the NWT. Funding is also accessible via the Northern Food Development Program (fish and

24 Northwest Territories Economic Opportunities Strategy, Connecting Businesses and Communities to Economic Opportunities, 2013

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agriculture program funding); and the Support for Entrepreneurs and Economic Development (SEED), a suite of programs and supports for general business development including the agriculture sector. The City of Yellowknife Food and Agricultural Strategy 2019 (GROW) Initiated in 2018, the Strategy aimed to establish a policy and planning framework to increase food and agricultural activities within the city for the next 10 years. The document builds on the vision outlined within the Yellowknife Food Charter25, created by the local farmers market, of creating a “just and sustainable food system in Yellowknife rooted in a healthy community, where everyone has access to adequate and affordable nutritious food; more food is grown and harvested locally; and food production policies and infrastructure are in place to support an economically viable, diverse and ecologically sustainable local food system.” Five key goals are included in the report, as illustrated in Figure 9. Figure 9: Key Goals outlined in GROW

Source: Adapted from the City of Yellowknife Food and Agricultural Strategy, 2018 The document provides excellent recommendations to kick start agricultural development within the city. Notable recommendations include supporting urban agricultural development through changes in land-use policies, continued support of greenhouse development, pushing learning and development opportunities for residents, and investigating the potential of a food incubator or kick starter program within the city. To truly achieve the mission of a ‘fair and sustainable food system,’ partnership developments on some of these initiatives must occur once the Akaitcho Dene First Nations Land claim proceedings are completed. Additionally, there are opportunities for developing educational courses within the city in partnership with the local college.

25 Yellowknife Farmers Market, Yellowknife Food Charter, 2015-16

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Strategy for Revitalizing the Great Slave Lake Commercial Fishery (2017) Within the commercial fishing sector, there has been some progress made at the territorial level but limited progress locally. In 2017, the NWT Department of Industry, Tourism and Investment created a new fishing strategy that aims to triple fish output by 2021.26 It describes steps, actions, and investments, to be implemented over five years to restore the NWT’s once-powerful Great Slave Lake commercial fishery. The strategy recommends replacing the fish processing plant in Hay River within the next three years. It also suggests setting up packaging stations in Yellowknife and Fort Resolution and encouraging fishing through the winter. Overall, this strategy has the potential to have positive economic downstream effects for the City of Yellowknife and the communities of the Yellowknives Dene First Nation (e.g. increased employment, possible creation of auxiliary service businesses).

Sector Support Services Agriculture Within the NWT, there are several support services in place to help developing businesses within the agriculture sector. Note, this is not an exhaustive list as other funding sources continually come online. Before applying for funding, it is suggested further research is conduced. Possible sources include:

Support Services/ Description Organizations

Northern Farm The institute is an experiential farm school that provides immersive training aimed to empower people Training Institute, through local food. The organization offers sector training for youth, indigenous populations and Hay River business leaders to develop in the sector, including: ▪ Northern Diversity in Agriculture Program ▪ Internship Training ▪ Introduction Courses ▪ Youth Gardens ▪ Farm Campus

Northern Food The goal of the program is to increase local food production and availability of northern food products Development for northern consumers. The program offers support across all food production sectors, including Program agriculture, fisheries, wildlife harvesting and non-timber forest products.

Aurora College, The local Yellowknife College offers an Environment and Natural Resources Technology Diploma to gain Yellowknife managerial skills in environment, land, water, fisheries, forest and fire management, and wildlife.

26 GNWT, Strategy for Revitalizing the Great Slave Lake Commercial Fishery, 2017

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 20

Support Services/ Description Organizations

Nutrition North Nutrition North Canada (NNC) is a Government of Canada program that helps make nutritious food and Program some essential items more affordable and accessible. NNC helps eligible northern communities in 3 ways: ▪ The NNC subsidy - subsidizes a list of nutritious eligible foods, as well as certain non-food items such as diapers and soap, hand-sanitizers ▪ Harvesters Support Grant – Supports local indigenous partners to increase their access to traditional foods by reducing the high costs associated with traditional hunting and harvesting. Provides $40 million over 5 years and $8 million per year ongoing, to Indigenous governments and organizations representing eligible Nutrition North Canada communities ▪ Nutrition education initiatives – Supports culturally appropriate retail and community-based nutrition education activities in all eligible isolated northern communities.

Support for Provides funding to promote and support the NWT private business sector. Funding is available under 6 Entrepreneurs areas, including Entrepreneur Support, Sector Support, Community Economic Development, Micro and Economic Business, Business Intelligence and Networking, Strategic Investments, Support for Film and Development Prospecting Support. Funds have been reallocated in the wake of COVID-19 to support local businesses Program (SEED) better.

Ecology North Ecology North is a charitable, non-profit organization based in Yellowknife that provides environmental decision-making on an individual, community and regional level. One of the core focuses of the program is on local food production. They provide a range of research, education support programs and manage projects helping promote the sustainable food sector for the NWT.

Canadian CanNor works with Northerners and Indigenous peoples, communities, businesses, organizations, Northern other federal departments and other orders of government to help build diversified and dynamic Economic economies that foster long-term sustainability and economic prosperity across the territories – Development Nunavut, Northwest Territories and Yukon. There are several funding programs available such as the Agency (CanNor) the Northern Business Relief Fund (NBRF) and Inclusive Diversification and Economic Advancement in the North (IDEANorth).

Key Challenges and Opportunities for Growth Impact of COVID-19 The recent pandemic has highlighted the fragility of global food supply chains, particularly in remote northern communities such as the City of Yellowknife and Yellowknives Dene First Nation. Jackie Milne, president of the Northern Farm Training Institute (NFTI) in Hay River, said if any of Canada's major import markets decide to stockpile their agricultural goods during the pandemic, the North could see immediate effects27. According to local farmers, the pandemic has also ramped up local eagerness to grow more locally and become more self-reliant.

27 CBC, NWT. farmers say now is the time to teach people how to grow their own food, 2020

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 21

Increasing Online and Offline Education The pandemic has highlighted the benefits of online learning both in and outside of the workplace. With students and workers prevented from gathering together in groups, most education institutions have taken to developing or enhancing online learning models to disseminate information. From an agriculture perspective, this opens the door for the City and First Nation to consider hosting online zoom education workshops and creating short, digestible online learning courses for residents to learn more about getting started in the sector. These courses could include everything from how to build soil to the ideal times to plant and harvest crops throughout the season (e.g. MakerSpace hosted an open house about how to plant a potato garden). Once COVID-19 restrictions are lifted, this online course activity could complement formal training sessions in person for both Yellowknife and Yellowknives Dene First Nation communities. Greater education collaboration with the Northern Farm Training Institute (NFTI) and Aurora College to create streamlined agriculture courses for both Yellowknife residents and First Nation members is an important step forward. Fisheries Expansion Creating a strong and sustainable economy over the long term requires diversification into sectors such as agriculture, fur and fisheries, and the creation of an industry that has export potential. Fisheries offer this for the local region. As highlighted earlier, commercial fishing in the Northwest Territories centres on Great Slave Lake, with Yellowknife and Hay River serving as hubs. There is potential to expand upon this sector through this strategy, particularly by leveraging partnerships with Yellowknives Dene First Nation upon completion of the current land claim proceedings. The current NWT fishing Revitalization Strategy’s plan targets 40 percent of the Great Slave Lake production in the NWT market. According to the report, the Hay River plant is close to full capacity, and so there could be potential for Yellowknife to establish its plant to boost regional processing capacity. Similarly, establishing more packaging stations in Yellowknife would complement the existing processing facility in Hay River. Attracting public investment is critical for the success of the fisheries industry expansion, and the City of Yellowknife should work in conjunction with Yellowknives Dene First Nation and the GNWT to ensure there are low barriers to entry for business owners. Leveraging Collaborative Partnerships A gap identified within the literature review is an economic collaboration with local indigenous groups (e.g. Yellowknives Dene First Nation) to create partnerships for industry development. The near completion of the land claim agreement offers opportunities for development and the ability to provide greater support to local entrepreneurs to expand hunting and trapping businesses for the fur trade.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 22

Appendix C: Long List of Economic Opportunity Areas During the initial stages of the project a list of 10 economic opportunity areas were identified. These sectors formed the basis of the prioritization workshop conducted with the Yellowknife Dene First Nation and City of Yellowknife Staff and is reflected in the final strategy document.

The Criteria Used to Assess the 10 Opportunities

Alignment with Existing Strategies: Areas of collaboration were assessed against existing reports and plans, and each community's current economic development strategy. This was to ensure that each organization would have existing capacity in that area so that any partnerships or collaborations would be supported through existing staff and resources.

Ease of Collaboration: This criteria assessed whether the collaboration area would be easy or difficult to execute. In some cases, this meant that the collaboration area would have easy and short-term wins or whether the collaboration area requires limited resources to execute.

Economic Impact: Through a big-picture lens, this criteria asked whether the given collaboration area would provide jobs and investment to the region, and at what scale. Mining, for example, holds a score of 10 for economic impact, as it reflects a significant economic impact on the Yellowknife area.

Social/Cultural Impact: It is of utmost importance that this strategy reflects the importance of social and cultural relevance for First Nation members. The Yellowknives Dene First Nation Economic Development Strategy emphasizes the need for cultural relevance in economic development initiatives, and this was also reflected throughout consultation for this strategy. Cementing the cultural identity of the Yellowknives Dene First Nation as the first peoples of the Yellowknife area is a high priority for members.

Potential for Regional Self-Sufficiency: This criteria emerged as a result of COVID-19's impacts on the local economy. The pandemic served to enhance the need for more economic self-sufficiency. Sectors such as food and agriculture were obvious areas of weakness, but it permeated into other industries as well. Thus, it is a consideration when carrying forward joint economic development initiatives.

Alignment with UN Sustainability Goals: Through this project, sustainable development showed itself in a number of ways. For instance, the City-First Nation partnership is built on a commitment to reconciliation, being a sustainable community with high regard for the natural environment. With that in mind, the long list of economic development opportunities were considered against appropriate UN Sustainable Development Goals.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 23

The United Nations Sustainable Development Goals are 17 goals of the 2030 Agenda for Sustainable Development. The Agenda is "a plan of action for people, planet and prosperity." The Agenda and its 17 goals were built on the success of the United Nations' Millennium Development Goals, which were similar calls to action to address the same challenges. The current 17 Sustainable Development Goals (SDGs) dig deeper, addressing the root causes of inequality, and balance the three dimensions of sustainable development: social, environmental, economic (note the parallel to people, planet, prosperity). Yellowknives Dene First Nation and City of Yellowknife are in a position to use this Joint Economic Development Strategy and its underlying partnership to contribute to these global goals. Figure 10: United Nations Sustainability Goals

For each criteria, there is an explanation provided in the middle column that assesses the opportunity against it. In the third column, a score is provided. Scores should be interpreted as follows: Figure 11: Criteria Assessment Legend

Score Legend

There are barriers to pursuing this opportunity

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

Opportunity is strongly aligned with this criteria

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 24

1. Land Development

Alignment with Existing Increasing availability of lands for residential, Strategies commercial and industrial use was identified in each community's economic development strategy.

Ease of Collaboration Much of the land that will be ceded to the Yellowknives Dene First Nation is within current city boundaries, so the City and First Nation could develop servicing and infrastructure agreements. These may be complicated, but they are an obvious opportunity for collaboration between the two governments.

Economic Impact Co-development of land could have significant implications for the First Nation and City's ability to attract investment, create jobs and generate revenue in the medium and long-term.

Social/Cultural Impact Co-developing land will give Yellowknives Dene First Nation the ability to utilize its land assets and generate revenue from them, which will likely have positive social impacts.

Potential for Regional Self- Increased land development will allow for City and Sufficiency First Nation to take further control over development within their boundaries.

UN Sustainability Goals Alignment

Ideal Situation by 2025 Yellowknives Dene First Nation and City of Yellowknife will have an inventory of investment-ready land available for industrial, commercial and residential development.

Potential Initiatives: Shared or coordinated infrastructure services Shared investment in land development

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 25

2. Local Business and Entrepreneur Support

Alignment with Each community identified supporting local businesses as a high Existing priority. This includes cutting red tape. Some entrepreneurs identified dissatisfaction with the development/building permit Strategies process (a satisfaction score of 59.1% in the business survey). Yellowknives Dene First Nation members identified that navigating business licencing and health and safety permits, especially for food businesses, could be a challenge that excludes Yellowknives Dene First Nation members from entrepreneurship.

Ease of Collaborating on business development and entrepreneur support Collaboration services is an area that would be relatively simple for the City and First Nation to execute jointly. However, service delivery for Yellowknives Dene First Nation members should be tailored to the language and cultural needs. This could be a collaboration between the Akaitcho Business Development Corporation and the City of Yellowknife. Public survey results showed that respondents felt this would be an easy area of collaboration (see Technical Report).

Economic Impact In the short-term, supporting local businesses has an incremental economic impact. In the long-term, it can mean significant job creation as locally owned and operated businesses expand in the region.

Social/Cultural Increasing access to entrepreneurship can have empowering Impact impacts on a community. It also fosters a culture of local pride and ownership in the local economy.

Potential for Very high. Increasing local entrepreneurship will bring more of the Regional Self- regional economy into the Yellowknives Dene First Nation and City's sphere of direct influence. Sufficiency

UN Sustainability Goals Alignment

Ideal Situation by Yellowknives Dene First Nation communities and the Yellowknife share a culture of 2025 entrepreneurialism and small businesses are opening and expanding. People choose entrepreneurship as a viable career path.

Potential Jointly run accelerator or incubator centre. Jointly delivered business development Initiatives: services, with cultural and language resources for First Nation entrepreneurs.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 26

3. Tourism

Alignment with Tourism was identified in both community's economic development Existing strategy as a high priority. Strategies

Ease of Delivering cultural tourism experiences is an excellent opportunity to Collaboration collaborate on short-term wins. Examples include culturally appropriate joint branding and marketing, jointly delivered tourist information services that give visibility to Yellowknives Dene First Nation culture and history. Public survey respondents felt this would be the easiest area of collaboration out of those identified between both economic development strategies (See Appendix D).

Economic Tourism can be a significant economic driver, but it is placed at a mid- Impact level score here due to the uncertainty of COVID-19 travel restrictions in the near and medium-term.

Social/Cultural Tourism delivery is an excellent way to provide visibility and education Impact on Yellowknives Dene First Nation culture, which has been historically misunderstood in the region. Increased visibility and respect for Yellowknives Dene history and culture will likely positively impact race relations and cultural wellness in the region.

Potential for Tourism relies on outside visitors, which can be severely impacted by Regional Self- external economic forces that neither the First Nation nor City have direct influence over (e.g. pandemic). However, pre-COVID-19, it was a Sufficiency core pillar of the local economy and could recover once borders reopen.

UN Sustainability Goals Alignment

Ideal Situation The region has a thriving tourism industry that attracts domestic and international by 2025 travellers. Tourism messaging places Yellowknives Dene First Nation people, culture and language as central to the region currently and historically.

Potential Joint tourism branding initiative and Bilingual wayfinding signage Initiatives: Tourism ambassador program that educates tourism operators and cab drivers about Yellowknives Dene First Nation culture in the region, so visitors are properly educated about the history of the region Airport branding/welcome display that is culturally and geographically appropriate Creation and operation of a marina on Great Slave Lake

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 27

4. Housing

Alignment with While not an identified priority in the First Nation or City Existing Strategies economic development strategies, addressing housing shortages and high costs of living was a persistent theme throughout the engagement.

Ease of Collaboration The First Nation and the City may have some opportunities to address housing shortages after the Akaitcho Land Claim settlement jointly; however, housing needs for Yellowknives Dene First Nation members and Yellowknife residents may be quite different and require tailored solutions.

Economic Impact Housing development – perhaps as a joint project led by Det'on Cho Management LP – could lead to local job creation in the short term. It was identified as the highest priority business satisfaction factor in the Business Satisfaction Survey (see Technical Report), which signals that it would greatly improve regional business satisfaction.

Social/Cultural Impact Sufficient housing is a major determinant of social wellness. First Nation members often have to live outside of Dettah and Ndilo and move into the city due to housing shortages, impacting wellness. Housing for city residents is often too expensive and pushes low-income residents to the margins.

Potential for Regional There may be an opportunity for Det'on Cho Management Self-Sufficiency LP to develop housing on lands that Yellowknives Dene First Nation will own after the land claim is settled. This could generate revenue for Yellowknives Dene First Nation and increase access to sufficient housing for residents, and build local skill capacity in trades.

UN Sustainability Goals Alignment

Ideal Situation by 2025 Suitable, affordable housing for all Yellowknives Dene First Nation members and City of Yellowknife residents.

Potential Initiatives: Co-development of Akaitcho agreement lands for housing development Creation of a joint non-profit housing corporation

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 28

5. Mining and Mineral Development

Alignment with Existing Each community's economic development strategy Strategies identifies mining supply chain opportunities.

Ease of Collaboration Joint lobbying efforts to upper levels of government for infrastructure development for exploration will be more effective than an uncoordinated effort.

Economic Impact The mining industry provides the region with an unmatched level of job creation and supply chain opportunities.

Social/Cultural Impact While the mining industry provides jobs and entrepreneurship opportunities to the Det'on Cho Management LP, it does not necessarily provide direct holistic social or cultural benefits.

Potential for Regional The mining industry largely relies on external market forces. Self-Sufficiency Local exploration efforts could be spearheaded to improve local self-sufficiency, but total self-sufficiency is unlikely.

UN Sustainability Goals Alignment

Ideal Situation by 2025 Mining and exploration is active and producing new opportunities for the region. Yellowknives Dene First Nation and the Yellowknife are reaping the benefits from all exploration and remediation activities.

Potential Initiatives: Joint lobbying for exploration and infrastructure. Business support for supply chain businesses.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 29

6. Food and Agriculture

Alignment with Both the City and First Nation identify food and agriculture as Existing Strategies high economic development priorities. Yellowknives Dene First Nation prioritizes country food and value-added opportunities that leverage cultural traditions. The City identifies increased support for commercial and urban agriculture.

Ease of Collaboration First Nation-owned lands, following the Akaitcho land claim settlement, could be utilized for agricultural purposes, which the City of Yellowknife and Yellowknives Dene First Nation could spearhead together. The Yellowknife farmers' market is another easy opportunity for joint collaboration, among others. Joint investment in fisheries is another opportunity.

Economic Impact While direct job creation would not be immediate nor massive scale at first, increasing entrepreneurialism in food, agriculture and value-added agriculture would have long-term benefits and incrementally create jobs in the region.

Social/Cultural Food is intrinsically tied to culture and wellness. Increasing Impact local food production, especially traditional food for Yellowknives Dene First Nation members, would create a culturally relevant economic driver in the region for the Yellowknives Dene. It would also address food security issues in the regional overall, which have been identified as a key challenge in the NWT.

Potential for Regional COVID-19 has highlighted the need to increase food security in Self-Sufficiency the region. Increasing the capacity to produce, process and sell local food could stem some regional food shortages, among other benefits.

UN Sustainability Goals Alignment

Ideal Situation by The entire region has secure access to nutritious, affordable, culturally relevant 2025 food. The local food system is a contributor to the local economy, and it can withstand supply chain challenges like those seen during the COVID-19 pandemic.

Potential Initiatives: Joint greenhouse development and other joint urban agriculture initiatives. Joint development of lands intended for commercial agriculture.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 30

7. Fisheries

Alignment with Existing Both strategies identify fishing – commercial and tourism – Strategies as an economic opportunity. In the City’s strategy it is grouped under Food and Agriculture. In the Yellowknives Dene First Nation’s Strategy, it is under Traditional Economy. In 2017 the GNWT also released a strategy to Revitalizing the Great Slave Lake Commercial Fishery Industry with opportunities for joint collaboration.

Ease of Collaboration The First Nation and City of Yellowknife could jointly support the growth of commercial fisheries through entrepreneurship support for fishing, processing and investment attraction activities.

Economic Impact As an export market, commercial fishing could have a significant economic impact. However, it is unlikely to compete with the mining or tourism sector in terms of jobs created.

Social/Cultural Impact As a traditional economic activity, the growth of a commercial and tourism fishing industry would have cultural relevance for Yellowknives Dene First Nation members.

Potential for Regional This activity leverages local resources and contains Self-Sufficiency opportunities for supply chain entrepreneurship. However, it is unlikely it could fully support the local region without aside support.

UN Sustainability Goals Alignment

Ideal Situation by 2025 Commercially caught fish is an large export of the Yellowknife region. The industry provides significant jobs and revenue to the area.

Potential Initiatives: Jointly attract commercial fishing investment. This could also be an initiative led by Det'on Cho Management LP.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 31

8. Airport Development

Alignment with Existing Only the City of Yellowknife identified airport development Strategies as a high priority including the need to upgrade YZF airport's infrastructure and establish it as an international airport and warehousing hub. Both the City and First Nation identified cold-weather testing as an economic opportunity.

Ease of Collaboration The First Nation and City could jointly advocate for international airport status, with border services toward the goal of attracting cold-weather testing and foreign investment. In the long term, Yellowknives Dene First Nation and City could jointly undertake investment attraction activities that market industrial land in Yellowknives Dene First Nation and the city. Clarity is needed on the jurisdiction of airport lands.

Economic Impact The airport and, by extension, the cold-weather testing it may attract, and other industrial activity could bring significant investment to the region. However, as the City of Yellowknife's economic development strategy describes, steps are required to make the region investment-ready. Any major economic impact would be a long-term goal.

Social/Cultural Impact Investment attraction activities tied to the airport would likely have limited social or cultural impact in the short- term.

Potential for Regional This type of economic activity relies on external investment Self-Sufficiency and travel from elsewhere to be successful. Thus, it does not encourage economic self-sufficiency.

UN Sustainability Goals Alignment

Ideal Situation by 2025 The Yellowknife Airport has full border services and is a destination for international business and tourism travel.

Potential Initiatives: Jointly advocating for border services and international airport status at YZF.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 32

9. Film

Alignment with Existing Film was identified as an 'other opportunity' in the City of Strategies Yellowknife's economic development strategy and is identified briefly as a small business opportunity in the Yellowknives Dene First Nation's economic development strategy for independent filmmakers.

Ease of Collaboration The GNWT leads investment attraction, so there may be opportunities to be more involved in that process in a unified way. The City and First Nation could collaborate on connecting local businesses with opportunities that arise from film activity in the region.

Economic Impact When film activity does come to the region, it can have significant economic benefits for local business owners and local temporary jobs. It is given a midlevel score due to its current state, which has been stalled by border closures due to COVID-19.

Social/Cultural Impact Some film activity does have significant cultural and social impacts. As a creative field, its presence could empower local youth to pursue careers in film and further awareness of the region and its culture.

Potential for Regional The film industry, at present, relies largely on international Self-Sufficiency or domestic air travel. Since COVID-19, many film productions were postponed in the region. The best bet to encourage this type of economic activity would be building capacity locally through education.

UN Sustainability Goals Alignment

Ideal Situation by 2025 The Yellowknife region is widely recognized as a northern film hub. Local businesses enjoy the economic benefits that the industry brings to the region.

Potential Initiatives: Create an inventory of businesses to assist the GNWT film office with local procurement when productions to come to the region. Work with the GNWT to determine if there is a role for the City of Yellowknife and Yellowknives Dene First Nation to contribute to investment attraction activities.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 33

10. Workforce Development

Alignment with Each community's economic development strategy identifies Existing Strategies some elements of workforce development or enhancement as a priority, though not directly. The City of Yellowknife has prioritized advocating for a polytechnic university, which is the most direct pathway to workforce development opportunities.

Ease of Collaboration Workforce development initiatives for Yellowknives Dene First Nation members may need to be tailored to specific cultural needs that may not apply for Yellowknife residents. That said, the Polytechnic would be a major opportunity to partner to advocate for tailored program delivery 28.

Economic Impact Workforce development initiatives can have a major economic impact when they assist with filling workforce shortages in active sectors. An appropriately skilled local workforce will keep money circulating in the local economy.

Social/Cultural Impact Increasing access to training for Yellowknife residents and Yellowknives Dene First Nation members would have cultural and social benefits by increasing participation and creating economic empowerment.

Potential for Regional Workforce development initiatives will increase capacity Self-Sufficiency among the local population, which will have local benefits.

UN Sustainability Goals Alignment

Ideal Situation by 2025 All First Nation members and Yellowknife residents that want employment have access to appropriate training and opportunities. Business and industry operating in the region has access to a skilled local talent pool.

Potential Initiatives: Jointly advocating for a polytechnic university, with consideration given to appropriate programming for industry and employment opportunities in the region, and culturally appropriate programming for First Nation members.

28 See Yukon College, Centre for Northern Innovation in Mining - https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/mineralsmetals/files/pdf/rmd-rrm/Yukon%20College- %20Centre%20for%20Northern%20Innovation%20in%20Mining.pdf

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 34

Consulting Team/CEDI Future Directions Workshop

A workshop was hosted on September 10, 2020, from 9:00 a.m. to 4:30 p.m, with 32 people taking part (including participants and facilitators). Due to the threat of COVID-19 and restrictions on travel within the NWT, the workshop followed a blended in-person and virtual model (via Zoom). Stakeholders ranged from high-level leadership positions within the City and First Nation, including the Mayor of Yellowknife and Chief and Council of the Yellowknives Dene First Nation. The main objectives of the workshop included: ▪ To engage in ongoing partnership development and growth between Yellowknives Dene First Nation and City of Yellowknife's elected representatives and staff. ▪ To build partnership capacity to do joint community economic development planning. ▪ To review the progress of the partnership. ▪ To identify a shortlist of joint economic opportunities. The full findings of this workshop including prioritized assessment criteria and opportunity areas can be found in the final joint strategy. Figure 12 and Figure 13 outline some of the discussions from the session regarding the Memorandum of Understanding (MOU) and brainstorming session. Figure 12: Example Shared Vision Statement Workshop Flipchart Notes

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 35

Figure 13: Workshop Highlights

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 36

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 37

Appendix D: Economic Base Analysis Summary

The economic base analysis identified key contextual findings of the demographic and economic characteristics of the City of Yellowknife and the Yellowknife Dene First Nation communities of Ndilo and Dettah. The detailed findings, along with tables representing the data, are included below. Some key themes from this detailed analysis which were pertinent to the current study are listed: ▪ Yellowknife is a central regional hub – The overall population growth in Yellowknife comprises of just under half (47%) of the whole of the NWT. The population grew by 6.5% from 2011 to 2018, higher than the NWT average of 5.3% but lower than the national average of 11.3%. Yellowknife has a younger population when compared to Canada (median age of 35.8 compared to 41.4). ▪ Housing prices are high – The median value of dwelling in Yellowknife in 2018 ($520 421) was 1.4 x more expensive than the rest of the NWT and 1.3 x more expensive than across Canada. Housing prices have increased by 44.7% from 2011 to 2018. The median monthly shelter costs in Yellowknife in 2016 ($1,683) was $774 more than Canada. ▪ A high proportion of educated individuals in Yellowknife – In Yellowknife, the proportion of individuals with a university certificate, diploma, or degree at bachelor level or above was 5 percentage points higher than Canada. ▪ High levels of household income – Compared to the Canada and Territory, the total income in Yellowknife is 38% higher than that of the NWT and 139% higher than Canada. Household income also increased by 44% over the 2010 to 2018 period, higher than both the NWT and Canada. ▪ The unemployment rate has remained low – Unemployment has decreased from 2011 to 2018 by 2 percentage points. Compared to Canada, Yellowknife has a lower proportion of self-employed workers (7% compared to 12%) but slightly higher than the NWT (7%). ▪ Public Administration, Mining and Tourism are vital economic sectors for employment and business activity – Comparing Yellowknife to the NWT we were able to determine the industries with a relative advantage based on the density of employment in that sector. The 2-digit North American Industry Classification System or NAICS – which classifies business establishments by type of economic activity – were used to identify sectors with a higher proportion of employment in Yellowknife, compared to the territory. These sectors included: public administration; mining, quarrying, and oil and gas extraction; tourism (including retail trade and accommodation); and professional, scientific and technical services. ▪ In terms of occupations, Yellowknife experienced the largest growth between 2011-2018 in public administration (282 people) and administrative and support, waste management and remediation services (150 people). Mining, quarrying, and oil and gas extraction and transportation and warehousing saw the largest decrease in net employment (-134 and -196 people, respectively).

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 38

Economic Base Analysis – Detailed Analysis

This economic base analysis presents an overview of the socio-economic, labour force and industry composition for the City of Yellowknife and the Yellowknives Dene First Nation. The results are derived from the following sources: ▪ Statistics Canada, Census Profile, 2011 ▪ Statistics Canada, Census Profile, 2016 ▪ Manifold Data Mining, 2018 ▪ Statistics Canada, Canadian Business Counts, December 2019 For these purposes, the City of Yellowknife, as a census subdivision, is examined, as its geographical catchment area includes Dettah and Ndilo. The City of Yellowknife Census subdivision is presented in comparison to broader geographies, including the Northwest Territories and Canada. The communities of Dettah and Ndilo are presented separately in a later section of the report. Figure 14 Map of Yellowknife, City, Census subdivision

Source: Statistics Canada, 2020 Demographic portrait Since 2006, Yellowknife’s population had increased from 18,700 to 20,490 in 2018. This increase represents a growth rate of 6.5%, which is slightly higher than the Northwest Territories, at 5.3%, yet substantially lower than Canada at 11.3%.

MDB Insight – YKDFN and the City of Yellowknife Joint Economic Development Strategy – Technical Report Page 39

Figure 15: Total population change in Yellowknife, 2006-2018

Year Yellowknife Northwest Territories Canada 2006 Census 18,700 41,464 31,612,897 2011 NHS 19,234 41,462 33,476,688 2016 Census 19,569 41,786 35,151,728 2018 Manifold Estimates 20,490 43,663 37,268,300 Pop. Growth rate 2011-2018 6.5% 5.3% 11.3% Source: Manifold Data Mining 2018 | Statistics Canada; 2016 Census, | 2011 NHS; 2006 Census | Figure 16 shows the distribution of Yellowknife’s population by age against the key comparators in 2018. When broken down by age characteristics, the majority (34%) of Yellowknife’s population is aged between 25 and 44 years, representing a strong core working population. Interestingly, this rate is 8% higher than Canada and 3% higher than the Northwest Territories, supporting the assumption of a large core working base. Yellowknife also has substantially fewer retirees (5% of the population) aged 65 or older than the rest of Canada at 17% and the Northwest Territories at 8%.

Figure 16: Age characteristics, percentage of the overall population – detailed categories, 2018

40% 34% 35% 31% 30% 26% 25% 20%21% 20% 17% 15% 15% 13% 14%14% 15% 15% 12% 12% 13%13% 10% 7% 5% 5% 2% 0% 1% 0% 0 to 14 15 to 24 25 to 44 45 to 54 55 to 64 65 to 84 85+

Yellowknife Northwest Territories Canada

Source: Manifold Data Mining 2018 Meanwhile, Figure 17 shows that Yellowknife’s median age in 2018 of 35.8 years is slightly older than the median age of the Northwest Territories at 34.6 years, yet significantly younger than the rest of Canada at 41.4 years. This data supports the insights gained from Figure 16 that Yellowknife is characterized as having a large, younger working-age population.

Figure 17: Median age of the population, 2011-2018

Year Yellowknife Northwest Territories Canada Median age population 2011 32.6 32.3 40.6 Median age population 2018 35.8 34.6 41.4 Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS

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Yellowknife’s population is predicted to grow by 3% over a ten-year timeline, increasing from 20,490 people in 2018 to 21,038 people by 2028. The growth rate is similar to that of the Northwest Territories at 2%, yet substantially behind Canada’s (11%). Compared to the historical growth rates, as seen in Figure 15, these results indicate that Yellowknife’s population growth is slowing. Overall, Yellowknife must continue to monitor forecasted population growth to ensure the planning of essential municipal services and workforce development strategies can be conducted effectively. Figure 18: Projected population growth 2018-2028

Characteristics Yellowknife Northwest Territories Canada 2018 20,490 43,663 37,268,300 2023 20,795 44,168 39,220,500 2028 21,038 44,678 41,301,500 10-year Pop. Change 548 1,015 4,033,200 10-year Pop. Change % 3% 2% 11% Source: Manifold Data Mining 2018

Dwelling Characteristics Most of the housing in the Yellowknife are single detached (45%), followed by apartment buildings that have fewer than five storeys (24%) and row housing (12%). The share of people living in single-detached houses is lower in Yellowknife than the Northwest Territories and Canada. Figure 19: Occupied dwellings by type, percentage of the overall population, 2018

Type of dwellings Yellowknife Northwest Territories Canada Single-detached house 45% 57% 54% Apartment, building that has five or more storeys 5% 3% 10% Semi-detached house 2% 7% 5% Apartment, detached duplex 4% 2% 6% Row house 12% 11% 6% Apartment, building that has fewer than five storeys 24% 16% 18% Other single-attached house 0% 0% 0% Source: Manifold Data Mining 2018 In Yellowknife, most dwellings are occupied by owners at 57.02%, whereas the share of people renting dwellings represents 42.98% of the city’s residents. In addition, the share of owners in Yellowknife is marginally higher than the Northwest Territories, yet substantially lower than the rest of Canada. Figure 20: Occupied dwellings by type, percentage of the overall population, 2018

Homeownership Yellowknife Northwest Territories Canada Owned 57.02% 54.09% 67.86% Rented 42.98% 45.85% 31.73% Source: Manifold Data Mining 2018

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When analyzing the value of housing, it is noted that Yellowknife has a low housing stock, which has significantly driven the median price of houses up. For example, the median value of dwellings in Yellowknife has risen by 45% over 7 years, from $359,696 in 2011 to $520,421 in 2018. This figure is substantially higher than the Northwest Territories, which only saw an increase of 29% over the same period. The median cost for renting in Yellowknife also saw a rise of 14% across the 2011 to 2016 period, up from $1,473 to $1,683. The Northwest Territories saw an increase of only 8% over the same period. Overall, Yellowknife must continue to monitor its low housing stock29 and the relationship with house prices moving forward. Figure 21: Median dwelling and shelter costs of dwellings

Characteristics Yellowknife Northwest Territories Canada Median value of dwellings ($) - 2011 $359,696 $280,566 $280,552 Median value of dwellings ($) - 2018 $520,421 $362,674 $393,476 Median monthly shelter costs for rented dwellings ($) -2011 $1,473 $1,202 $784 Median monthly shelter costs for rented dwellings ($) -2016 $1,683 $1,298 $910 Source: Manifold Data Mining 2018 | Statistics Canada; 2016 Census, 2011 NHS Income Individual Income Figure 22 shows the changes in median total individual income over the 2010 to 2018 time period. Compared to the key comparators, Yellowknife has a significantly higher median total income of $72,464 in 2018. This figure is nearly double that of the rest of Canada at $37,148 and is 25% higher than the Northwest Territories at $57,815. Income growth has largely been consistent with the key comparators, growing at a rate of 23% over 8 years 2010 to 2018. Figure 22: Median total individual income 2010-2018

Characteristics Yellowknife Northwest Territories Canada Median total income in 2010 among recipients ($) $58,832 $44,186 $29,878 Median total income in 2018 among recipients ($) $72,464 $57,815 $37,148 % change 23% 31% 24% Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS In terms of the individual income distribution, Figure 23 shows that Yellowknife has a large proportion of high-income earners when compared to the key comparators. For example, 29% of individual incomes in Yellowknife are $100,000 or higher, compared to 24% in the Northwest Territories and only 8% in the rest of Canada. Conversely, 17% of Yellowknife’s population earns under $29,999 less than the other comparators. These figures suggest significant income disparity within the census subdivision.

29 The vacancy rate for 2018 is 5.2% according to the Canadian Mortgage and Housing Corporation

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Figure 23: Individual income distribution, percentage of the overall population, 2018

8% $100,000 and over 24% 29% 3% $90,000 to $99,999 5% 6% 4% $80,000 to $89,999 5% 6% 5% $70,000 to $79,999 5% 7% 6% $60,000 to $69,999 6% 6% 8% Canada $50,000 to $59,999 6% 7% Northwest Territories 10% $40,000 to $49,999 7% Yellowknife 7% 12% $30,000 to $39,999 7% 7% 14% $20,000 to $29,999 10% 8% 17% $10,000 to $19,999 12% 8% 13% Under $10,000 (including loss) 13% 9% 0% 5% 10% 15% 20% 25% 30% 35%

Source: Manifold Data Mining 2018 Household Income In 2018 Yellowknife recorded a high median household income of approximately $178,182. This figure was 38% higher ($48,600) than the Northwest Territories median and 139% higher ($103,538) than the Canadian household median. Yellowknife has also experienced the largest percentage growth out of the key comparators, growing by 44% across 8 years 2010 to 2018 or double the Canadian rate. Figure 24: Median total household income 2010-2018

Characteristics Yellowknife Northwest Territories Canada Median total income of households in 2010 ($) $123,464 $99,127 $61,072 Median total income of households in 2018 ($) $178,182 $129,558 $74,644 % change 44% 31% 22% Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS In terms of the household income distribution, the figure below shows that Yellowknife has a substantially larger share of households with income over $100,000 compared to the other areas. The city also has a smaller proportion of people with income under $40,000.

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Figure 25: Household income distribution, percentage of the overall population, 2018

$100;000 and over $90;000 to $99;999 $80;000 to $89;999 $70;000 to $79;999 $60;000 to $69;999 $50;000 to $59;999 $45;000 to $49;999 $40;000 to $44;999 $35;000 to $39;999 $30;000 to $34;999 $25;000 to $29;999 $20;000 to $24;999 $15;000 to $19;999 $10;000 to $14;999 $5;000 to $9;999 Under $5;000

0% 10% 20% 30% 40% 50% 60% 70% 80%

Canada Northwest Territories Yellowknife

Source: Manifold Data Mining 2018 Education Education attainment can be looked at as an important descriptor of labour force capacity. The figure below summarizes skilled labour proportions for comparator areas, which is composed of those people that have completed an apprenticeship, trade certificate, or college or university degree, diploma, or certificate. As can be seen in Figure 26, Yellowknife has a higher proportion of its population with a post-secondary degree or apprenticeship education at 69% in 2018 than both the Northwest Territories (60%) and Canada (65%). This rate could indicate a concentration of higher-paying jobs within the region, which attracts a high skilled workforce. Figure 26: Proportion of population (ages 25 to 64) with post-secondary degree or apprenticeship education (skilled labour), 2011 and 2018

Year Yellowknife Northwest Territories Canada Skilled Labour 201130 68% 59% 64% Skilled Labour 2018 69% 60% 65% Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS

30 Skilled Labour refers to individuals with a post-secondary degree or apprenticeship

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Figure 27 shows that Yellowknife has a larger share of people with a university certificate, diploma, or degree at a bachelor level or above at 34.4% than both key comparators. Yellowknife also has a smaller proportion of people with no certificate, diploma, or degree at 9.5% than the Northwest Territories (20%) and Canada (11%). On all other factors, Yellowknife recorded numbers consistent with the key comparators. Figure 27: Highest level of education attainment (ages 25 to 64), % of the population, 2018

Canada 11% 24% 11% 22% 3% 29%

Northwest Territories 20% 19% 11% 22% 3% 25%

Yellowknife 9.5% 21.5% 8.9% 22.0% 3.6% 34.4%

No certificate, diploma or degree Secondary (high) school diploma or equivalency certificate Apprenticeship or trades certificate or diploma College, CEGEP or other non-university certificate or diploma University certificate or diploma below bachelor level University certificate, diploma or degree at bachelor level or above

Source: Manifold Data Mining 2018 People’s major fields of study in Yellowknife are business, management and public administration (12%); followed by architecture, engineering and related technologies (12%); and health and related fields (8%). These are also the main three fields of study in the Northwest Territories and Canada. Furthermore, 38% of those aged 15 years and over did not possess a postsecondary certificate, diploma, or degree; below both key comparators. Figure 28: Major field of study (ages 15 and over), percentage of the population, 2018

Major field of study Yellowknife Northwest Territories Canada No postsecondary certificate, diploma or degree 38% 48% 44% Education 5% 5% 4% Visual and performing arts and communications technologies 2% 1% 2% Humanities 3% 2% 3% Social and behavioural sciences and law 7% 5% 6% Business, management and public administration 12% 11% 12% Physical and life sciences and technologies 3% 2% 2% Mathematics, computer and information sciences 2% 2% 2% Architecture, engineering and related technologies 12% 11% 12% Agriculture, natural resources and conservation 2% 2% 1% Health and related fields 8% 7% 8% Personal, protective and transportation services 5% 5% 4% Other fields of study 0% 0% 0% Source: Manifold Data Mining 2018

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Mobility The movement of people within a community or to the community from somewhere else constitutes mobility. Statistics Canada tracks this by asking if a household has moved within the past year and asking if a household has moved within the past five years. As of 2018, most people in Yellowknife, the Northwest Territories and Canada stayed where they were five years earlier or moved somewhere in the same geography. By 2018, Yellowknife had the largest share of migrants (internal and external) with 24%. The relatively large share of internal migrants may suggest a relatively transient community. Figure 29: Mobility characteristics 5 years ago, 2018

100% 4% 2% 4% 90% 13% 20% 18% 80% External migrants 21% 70% 24% 60% 28% Internal migrants 50% 40% Non-migrants (i.e. moved within 62% 30% 56% same community) 20% 47% Non-movers 10% 0% Yellowknife Northwest Canada Territories

Source: Manifold Data Mining 2018 Labour Force According to the standard definition employed by Statistics Canada, the employed are persons having a job or business, whereas the unemployed are without work, are available for work, and are actively seeking work. Together the unemployed and the employed constitute the labour force31. Between 2011 and 2018, Yellowknife’s labour force grew by 5%, from 12,760 to 13,377. This rate is equal to the growth experienced by the Northwest Territories yet is significantly below that of Canada at 13%.

Figure 30: Labour force size, 2011-2018 Labour Force Size Yellowknife Northwest Territories Canada In the labour force 2011 12,760 23,930 17,990,080 In the labour force 2018 13,377 25,103 20,347,800 Net (+/-) 617 1,173 2,357,720 % growth 5% 5% 13% Labour force participation rate 2018 82% 73% 66% Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS

31 Statistics Canada. Retrieved on January 7, 2019 from < https://www150.statcan.gc.ca/n1/pub/81-004-x/def/4153361- eng.htm>

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Unemployment rates have decreased in all areas between 2011 and 2018. Notably, Yellowknife saw an unemployment decline of 2%. The participation rate is pivotal because out of the total people qualified to enter the labour market (aged 15 and over), it says what proportion is either employed or actively looking for employment. Participation rates have decreased in all the areas analyzed. However, Yellowknife had the highest participation rate fall among these geographies (2%). Note that people looking for work can also include those receiving employment insurance. Figure 31: Labour force status, percentage of the population, 2011-2018

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yellowknife Northwest Territories Canada Participation rate 2018 82% 73% 66% Participation rate 2011 85% 75% 66% Unemployment rate 2018 4% 7% 6% Unemployment rate 2011 6% 11% 0

Participation rate 2018 Participation rate 2011 Unemployment rate 2018 Unemployment rate 2011

Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS Looking at the class of worker, over 92% of the labour force in Yellowknife work as employees in light with the other comparators. Yellowknife also registered the second-highest share of self-employed people with 7% behind Canada at 12%. Yellowknife and the Northwest Territories’ low percentage of self-employed persons versus the national percentage suggests a limited entrepreneurship culture in Yellowknife.

Figure 32: Class of worker ratio, 2018

Class of worker Yellowknife Northwest Territories Canada Employees 92% 91% 86% Self-employed 7% 6% 12% Source: Manifold Data Mining 2018

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Labour Force by Industry Of the figure below, Yellowknife has large proportions of its labour force concentrated in public administration (25%), health care and social assistance (9%) and mining, quarrying, and oil and gas extraction (6%). Yellowknife also has an important percentage of its labour force working in retail trade (9%).

Utilities, manufacturing, and management of companies and enterprises were the sectors that employed fewer people in Yellowknife and the Northwest Territories, with shares below the one percentage point in these geographies.

Figure 33: Employed labour force by industry, percentage of labour force, 2018

NAICS Yellowknife Northwest Territories Canada Industry - not applicable 1% 3% 2% 11 Agriculture, forestry, fishing and hunting 0% 1% 2% 21 Mining, quarrying, and oil and gas extraction 6% 6% 2% 22 Utilities 1% 2% 1% 23 Construction 5% 7% 7% 31-33 Manufacturing 1% 1% 8% 41 Wholesale trade 2% 1% 4% 44-45 Retail trade 9% 9% 11% 48-49 Transportation and warehousing 7% 6% 5% 51 Information and cultural industries 3% 2% 2% 52 Finance and insurance 2% 2% 4% 53 Real estate and rental and leasing 2% 2% 2% 54 Professional, scientific and technical services 5% 4% 7% 55 Management of companies and enterprises 0% 0% 0% 56 Administrative and support, waste management and 4% 3% 4% remediation services 61 Educational services 6% 7% 7% 62 Health care and social assistance 9% 9% 11% 71 Arts, entertainment and recreation 2% 2% 2% 72 Accommodation and food services 6% 5% 7% 81 Other services (except public administration) 4% 4% 4% 91 Public administration 25% 24% 6%

Source: Manifold Data Mining 2018 Yellowknife saw a net increase of 617 people in the labour force over the 2011 to 2018 period. Sectors that experienced the largest net increases include: ▪ Public administration – net increase of 282 people (8% change) ▪ Health care and social assistance – net increase of 126 people (11% change) ▪ Administrative and support, waste management and remediation services – net increase of 150 people (30% change)

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▪ Retail trade – net increase of 113 people (9% change) Conversely, sectors that saw the largest net decrease in the labour force include: ▪ Transportation and warehousing – net decrease of 196 people (20% change) ▪ Mining, quarrying, and oil and gas extraction – net decrease of 134 people (16% change) ▪ Construction – net decrease of 118 people (17% change) Figure 34: Changes in the employed labour force by Industry, 2011-2018

Industry (NAICS) 2011 2018 Net (+/-) Total 12760 13377 617 Industry - NAICS2012 - not applicable 225 160 -65 11 Agriculture, forestry, fishing and hunting 10 50 40 21 Mining, quarrying, and oil and gas extraction 965 831 -134 22 Utilities 65 100 35 23 Construction 795 677 -118 31-33 Manufacturing 115 163 48 41 Wholesale trade 225 210 -15 44-45 Retail trade 1080 1,193 113 48-49 Transportation and warehousing 1155 959 -196 51 Information and cultural industries 415 430 15 52 Finance and insurance 270 306 36 53 Real estate and rental and leasing 180 244 64 54 Professional, scientific and technical services 670 713 43 55 Management of companies and enterprises 30 11 -19 56 Administrative and support, waste management and remediation services 355 505 150 61 Educational services 785 779 -6 62 Health care and social assistance 1035 1,161 126 71 Arts, entertainment and recreation 135 212 77 72 Accommodation and food services 730 780 50 81 Other services (except public administration) 425 522 97 91 Public administration 3090 3,372 282 Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS Despite the insight gleaned from the above, further analytical tools allow for assessing industry competitiveness relative to the overall territory. These can prove insightful for understanding what industries make sense to promote further growth or monitoring for potential declines. A location quotient analysis explains which industries employ a competitively higher proportion of people than the Territory. A score of 1.25 or greater represents a relative strength; a score between 0.75 and 1.25 represents a sector that is on par with the territory (1.0 represents perfect parity). A score below 0.75 represents a sector of comparative weakness. Also pertinent are the trends over time and their direction, which indicates that potential opportunities or threats need to be addressed. Based on the above considerations, the following observations emerge from the data in the figure below: ▪ Competitive sectors include finance and insurance; professional, scientific and technical services; real estate and rental and leasing information; and cultural industries. ▪ Moderate or high competing sectors include mining, quarrying, and oil and gas extraction; public administration, transportation and warehousing; educational services and wholesale trade. Comparatively weak sectors include construction; utilities; and agriculture, forestry, fishing and hunting.

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▪ Over the 2011 to 2018 period, notable sectors that experienced growth in concentration include: administrative and support, waste management and remediation services; utilities; retail trade; finance and insurance; and health care and social assistance. Figure 35: Employment location quotient (LQ) analysis – concentration of employed labour force by industry 2011 to 2018

Industry (NAICS) LQ 2011 Strength LQ 2018 Strength Change Trend 11 Agriculture, forestry, fishing and hunting 0.13 Low 0.37 Low 0.25 Growing 21 Mining, quarrying, and oil and gas 1.25 Moderate 1.09 Moderate -0.16 Declining extraction 22 Utilities 0.44 Low 0.47 Low 0.03 Growing 23 Construction 0.78 Moderate 0.71 Low -0.07 Declining 31-33 Manufacturing 1.17 Moderate 1.07 Moderate -0.09 Declining 41 Wholesale trade 1.17 Moderate 1.09 Moderate -0.09 Declining 44-45 Retail trade 0.95 Moderate 0.99 Moderate 0.04 Growing 48-49 Transportation and warehousing 1.22 Moderate 1.20 Moderate -0.01 Declining 51 Information and cultural industries 1.54 High 1.44 High -0.10 Declining 52 Finance and insurance 1.45 High 1.46 High 0.01 Growing 53 Real estate and rental and leasing 0.79 Moderate 1.03 Moderate 0.24 Growing 54 Professional, scientific and technical 1.39 High 1.30 High -0.08 Declining services 55 Management of companies and 0.87 Moderate 1.88 High 1.01 Growing enterprises 56 Administrative and support, waste 1.05 Moderate 1.13 Moderate 0.09 Growing management and remediation services 61 Educational services 0.84 Moderate 0.81 Moderate -0.04 Declining 62 Health care and social assistance 0.94 Moderate 0.99 Moderate 0.05 Growing 71 Arts, entertainment and recreation 0.72 Low 0.83 Moderate 0.10 Growing 72 Accommodation and food services 1.19 Moderate 1.08 Moderate -0.11 Declining 81 Other services (except public 0.94 Moderate 1.03 Moderate 0.09 Growing administration) 91 Public administration 0.99 Moderate 1.06 Moderate 0.07 Growing Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS. Adapted by MDB Insight Figure 36 presents the results of another analytical tool called a shift-share analysis. The shift-share articulates the factors which drive changes in employment through three primary considerations: ▪ Reference Area Growth Effect: The impact that changes in the overall broader economy at the territorial level have had on local employment in each sector, leading to an increase or decrease in local employment. ▪ Industrial Mix Effect: The impact that changes among different industries of the economy have had on local employment in a given sector, leading to an increase or decrease in local employment. ▪ Differential Shift: The impact that local factors have had on increases or decreases in local employment (i.e., changes that cannot be explained by those in the reference area growth effect or industrial mix effect). The data below indicates the following: ▪ Overall, changes in the labour force were driven by growth in the reference area growth effect (631 jobs) (i.e. growth of the Northwest Territory’s economy), and by changes in the local factors under

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the differential shift (120 jobs). Small declines were driven mostly by industry changes. In total, the gains and declines resulted in a net gain of 688 new jobs for Yellowknife. ▪ Increases were most evident in public administration; retail trade; health care and social assistance; administrative and support; and waste management and remediation services. ▪ Declines are most evident in transportation and warehousing; mining and oil and gas extraction and construction. Figure 36: Northwest Territories/Yellowknife – Shift Share Analysis

Area Growth Industrial Mix Differential North American Industry Classification System Total Effect Effect Shift Agriculture, forestry, fishing and hunting 1 6 33 40 Mining and oil and gas extraction 49 -57 -125 -134 Utilities 3 26 6 35 Construction 40 -87 -71 -118 Manufacturing 6 56 -14 48 Wholesale trade 11 -9 -17 -15 Retail trade 54 8 50 113 Transportation and warehousing 58 -243 -11 -196 Information and cultural industries 21 23 -29 15 Finance and insurance 14 20 2 36 Real estate and rental and leasing 9 -1 56 64 Professional, scientific and technical services 34 56 -47 43 Management of companies and enterprises 2 -26 6 -19 Administrative and support, waste management 18 94 38 150 and remediation services Educational services 40 -9 -37 -6 Health care and social assistance 52 19 55 126 Arts, entertainment and recreation 7 44 26 77 Accommodation and food services 37 92 -79 50 Other services (except public administration) 21 32 44 97 Public administration 156 -107 234 282 Total 631 -64 120 688 Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS. Adapted by MDB Insight *Calculation does not include “not applicable industries* A more detailed analysis of the employed labour force shows the industries at the NACIS 4-digit level. In Yellowknife, provincial and territorial public administration is the industry with the largest local labour force employed at 17%. This is followed by elementary and secondary schools (5%), non-metallic mineral mining and quarrying (5%), and full-service restaurants and limited-service eating places (4%). Figure 37: Top 20 Industries (4 Digit NAICS) by Employed Labour Force, 2018

NAICS (4-Digit) Yellowknife Northwest Territories Canada 9120 Provincial and territorial public administration (9121 to 9129) 17% 14% 2% 6111 Elementary and secondary schools 5% 6% 5% 2123 Non-metallic mineral mining and quarrying 5% 4% 0% 7225 Full-service restaurants and limited-service eating places 4% 3% 6% 9112-9119 Other federal government public administration 4% 3% 2% 4811 Scheduled air transportation 3% 2% 0% 6220 Hospitals(6221 to 6223) 3% 3% 4%

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NAICS (4-Digit) Yellowknife Northwest Territories Canada 9111 Defence services 3% 2% 1% 4451 Grocery stores 2% 4% 2% 9130 Local, municipal and regional public administration (9131 to 9139) 2% 3% 2% 2382 Building equipment contractors 1% 2% 2% 5416 Management, scientific and technical consulting services 1% 1% 1% 6244 Child day-care services 1% 1% 1% 5616 Investigation and security services 1% 1% 1% 7211 Traveller accommodation 1% 2% 1% 5413 Architectural, engineering and related services 1% 1% 1% 5617 Services to buildings and dwellings 1% 1% 2% 5171 Wired telecommunications carriers 1% 1% 1% 6241 Individual and family services 1% 1% 1% 4411 Automobile dealers 1% 1% 1% Source: Manifold Data Mining 2018

Labour Force by Occupation Figure 38 shows the number of people working in each occupation, as defined by the National Occupational Classification (NOC) for 2018. Occupations in sales and service and business, finance and administration have the highest percentage of the labour force employed in Yellowknife at 18%, followed by occupations in education, law and social, community and government services at 16%. Figure 38: Employed labour force by occupational category, percentage of labour force, 2018

National Occupational Classification (NOC) (1-Digit) Yellowknife Northwest Territories Canada Occupation - not applicable 1% 3% 2% 0 Management occupations 13% 12% 11% 1 Business, finance and administration occupations 18% 16% 15% 2 Natural and applied sciences and related occupations 9% 7% 7% 3 Health occupations 6% 5% 7% 4 Occupations in education, law and social, community and 16% 17% 11% government services 5 Occupations in art, culture, recreation and sport 3% 2% 3% 6 Sales and service occupations 18% 18% 23% 7 Trades, transport and equipment operators and related 12% 16% 14% occupations 8 Natural resources, agriculture and related production occupations 3% 3% 2% 9 Occupations in manufacturing and utilities 1% 2% 4%

Source: Manifold Data Mining 2018 Occupations that experienced major growth in Yellowknife include occupations in education, law and social, community and government services (+300 jobs), sales and service occupations (+220 jobs), and health occupations (+111 jobs). However, occupations with the slowest growth include business, finance and administration occupations, and natural and applied sciences and related occupations.

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Figure 39: Employed labour force by occupational category (number of people), 2011-2018

Yellowknife Yellowknife Occupations (NOC) Net (+/-) 2011 2018 Total 12,760 13,377 617 Occupation - not applicable 225 160 -65 0 Management occupations 1,745 1,738 -7 1 Business, finance and administration occupations 2,480 2,384 -96 2 Natural and applied sciences and related occupations 1,240 1,167 -73 3 Health occupations 650 761 111 4 Occupations in education, law and social, community and 1,855 2,155 300 government services 5 Occupations in art, culture, recreation and sport 350 404 54 6 Sales and service occupations 2,195 2,415 220 7 Trades, transport and equipment operators and related occupations 1,615 1,659 44 8 Natural resources, agriculture and related production occupations 280 346 66 9 Occupations in manufacturing and utilities 125 187 62 Source: Manifold Data Mining 2018 | Statistics Canada; 2011 NHS. Adapted by MDB Insight Commuting Patterns The study on commuting patterns measures the import and export characteristics of a region’s workforce. A high percentage of the outside labour force working in the community depicts the attraction of the region for nearby communities. In contrast, if the majority of the workers in the community leave for their work (export of labour force), then it may hint towards a lack of proportional opportunities in the community. Based on the table below, Yellowknife is a net importer of workers, importing 150 people in 2016, indicating the attraction of the region for employment opportunities. However, due to Yellowknife’s remote geographic location and other factors, most of the working population lives and works in Yellowknife (9,995 workers). The top industries for those living and working in Yellowknife include public administration (3,105 workers), retail trade (1,045 workers) and educational services (620 workers). Of those who do leave, most work in educational services (45 workers), health care and social assistance (30 workers), or public administration (30 workers). Conversely, the top sectors that commute to Yellowknife include mining, quarrying, and oil and gas extraction (155 workers), public administration (130 workers), and construction (40 workers).

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Figure 40: Net import/export of workers Yellowknife, NWT 2016

Commuting Living and Leaving Net NAICS to working in Yellowknife Import/Export Yellowknife Yellowknife 11 Agriculture, forestry, fishing and hunting 0 15 10 -10 21 Mining, quarrying, and oil and gas extraction 155 385 0 155 22 Utilities 0 55 0 0 23 Construction 40 300 10 30 31-33 Manufacturing 0 100 10 -10 41 Wholesale trade 0 135 10 -10 44-45 Retail trade 0 1,045 30 -30 48-49 Transportation and warehousing 20 725 10 10 51 Information and cultural industries 0 315 10 -10 52 Finance and insurance 0 265 0 0 53 Real estate and rental and leasing 0 135 10 -10 54 Professional, scientific and technical services 10 520 10 0 55 Management of companies and enterprises 0 0 0 0 56 Administrative and support, waste management 10 285 0 10 and remediation services 61 Educational services 10 620 45 -35 62 Health care and social assistance 15 980 30 -15 71 Arts, entertainment and recreation 0 105 20 -20 72 Accommodation and food services 10 520 0 10 81 Other services (except public administration) 10 385 20 -10 91 Public administration 130 3,105 30 100 Total 410 9,995 255 155 Source: Statistics Canada; 2016 Census When it comes to the labour force living in Yellowknife, about 255 people leave Yellowknife to work. Most of the people commute to Behchokò, Edmonton or Fort Smith. Figure 41: Commuting destination of people commuting from Yellowknife, 2016

Commuting Destination Total Behchokò 55 Edmonton 20 Fort Smith 20 Source: Statistics Canada; 2016 Census The analysis from the 2016 Census suggests that about 410 people commute to Yellowknife from other geographies to work, mostly from Hay River or Dettah. Figure 42: Place of residence of the people commuting to Yellowknife, 2016

Commuting Origin Total Region 6, Unorganized 32 100 Hay River 40 Dettah 30 Source: Statistics Canada; 2016 Census

32 See Statistics Canada website for further information:

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Business Counts Statistics Canada’s Canadian Business Counts provides a record of business establishments by industry sector and size. This data is collected from the Canadian Revenue Agency (CRA). The Canadian Business Counts data records business counts as either “Without Employees” or “With Employees.” The establishments in the “Without Employees” category include the self-employed (i.e., those who do not maintain an employee payroll, but may have a workforce consisting of contracted workers, family members or business owners). It should be noted that the Canadian Business Counts data use the Canada Revenue Agency as a primary resource in establishment counts; therefore, businesses without a business number or indicating annual sales less than $30,000 are not included. Focusing primarily at the “Sub-Total, classified” numbers and industry breakdowns, the analysis found that: ▪ As of December 2019, approximately 2,069 businesses were registered in Yellowknife. These include businesses classified by industry (1,934 businesses) and those unclassified (135 businesses). ▪ Of the 1,934 businesses classified by industry, the greatest number of businesses are found in real estate and rental and leasing (313 businesses), professional, scientific and technical services (231 businesses) and construction (180 businesses). ▪ 57% (1,103 businesses) of those classified by industry have no employees. ▪ Of the 831 businesses with employees, 59% employ between 1 to 9 people and only 3.5% employ more than 100.33

33 Note: This section includes all registered companies with a Goods and Services Tax number, as registered through the Canada Revenue Agency. Results should not be compared directly to existing business directories as the criteria for registering are different for both. The Canadian Business Counts data are used primarily so that comparisons can be made to the Territorial Distribution of businesses across the same categories.

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Figure 43: Business counts Yellowknife by industry and business size (number of employees)

Industry (NAICS) Total Ind. Subtotal 1-4 5-9 10-19 20-49 50-99 100-199 200-499 500 + Total 2,069 1,198 871 341 189 151 118 43 19 8 2 Unclassified 135 95 40 37 1 2 0 0 0 0 0 Sub-total, classified 1,934 1,103 831 304 188 149 118 43 19 8 2 11 - Agriculture, forestry, fishing and hunting 5 3 2 1 0 0 1 0 0 0 0 21 - Mining and oil and gas extraction 20 8 12 1 2 0 4 1 0 2 2 22 - Utilities 2 1 1 0 0 0 0 1 0 0 0 23 - Construction 180 90 90 36 22 8 17 4 3 0 0 31-33 - Manufacturing 19 8 11 2 6 2 1 0 0 0 0 41 - Wholesale trade 40 9 31 10 6 9 4 2 0 0 0 44-45 - Retail trade 133 44 89 30 25 18 9 5 1 1 0 48-49 - Transportation and warehousing 112 67 45 12 10 7 9 3 4 0 0 51 - Information and cultural industries 32 15 17 4 5 3 4 1 0 0 0 52 - Finance and insurance 82 63 19 7 4 5 2 1 0 0 0 53 - Real estate and rental and leasing 313 283 30 14 10 4 1 1 0 0 0 54 - Professional, scientific and technical services 231 138 93 52 17 17 4 3 0 0 0 55 - Management of companies and enterprises 38 30 8 3 1 0 2 1 1 0 0 56 - Administrative and support, waste management and remediation services 99 47 52 20 15 12 3 1 1 0 0 61 - Educational services 36 16 20 8 4 3 2 1 0 2 0 62 - Health care and social assistance 159 112 47 15 5 15 10 1 1 0 0 71 - Arts, entertainment and recreation 46 29 17 6 4 4 2 1 0 0 0 72 - Accommodation and food services 107 32 75 18 22 12 15 5 3 0 0 81 - Other services (except public administration) 173 97 76 31 21 19 3 1 1 0 0 91 - Public administration 107 11 96 34 9 11 25 10 4 3 0 Source: Statistics Canada, Canadian Business Counts, December 2019

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The table below presents the distribution of businesses with employees in Yellowknife. The four largest sectors with employees include public administration (96 businesses or 11% of total); professional, scientific and technical services (93 businesses or 11% of total); construction (90 businesses or 10% of total); and retail trade (89 businesses or 10% of total). Figure 44: Businesses by industry in Yellowknife, percentage of total businesses with employees, 2019

Number of business with % of total business with Industry (NAICS) employees employees 91 - Public administration 96 12% 54 - Professional, scientific and technical services 93 11% 23 - Construction 90 11% 44-45 - Retail trade 89 11% 81 - Other services (except public administration) 76 9% 72 - Accommodation and food services 75 9% 56 - Administrative and support, waste management and 6% 52 remediation services 62 - Health care and social assistance 47 6% 48-49 - Transportation and warehousing 45 5% 41 - Wholesale trade 31 4% 53 - Real estate and rental and leasing 30 4% 61 - Educational services 20 2% 52 - Finance and insurance 19 2% 51 - Information and cultural industries 17 2% 71 - Arts, entertainment and recreation 17 2% 21 - Mining and oil and gas extraction 12 1% 31-33 - Manufacturing 11 1% 55 - Management of companies and enterprises 8 1% 11 - Agriculture, forestry, fishing and hunting 2 0.2% 22 - Utilities 1 0.1% Source: Statistics Canada, Canadian Business Counts, December 2019 Again, using the location quotient analysis, where 1.25 or greater represents strength, 0.75 to 1.25 represents proximity to the Territory distribution, and below 0.75 represents low competitiveness, the sectors with the higher concentration of businesses than the Territory include wholesale trade and information and cultural industries.

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Figure 45: Business count location quotients (LQ) businesses with employees by industry, 2018

Industry (NAICS) LQ 2019 Strength 11 - Agriculture, forestry, fishing and hunting 0.31 Low 21 - Mining and oil and gas extraction 0.98 Moderate 22 - Utilities 0.31 Low 23 - Construction 0.88 Moderate 31-33 - Manufacturing 1.15 Moderate 41 - Wholesale trade 1.53 High 44-45 - Retail trade 0.88 Moderate 48-49 - Transportation and warehousing 0.86 Moderate 51 - Information and cultural industries 1.28 High 52 - Finance and insurance 0.89 Moderate 53 - Real estate and rental and leasing 0.73 Low 54 - Professional, scientific and technical services 1.22 Moderate 55 - Management of companies and enterprises 0.83 Moderate 56 - Administrative and support, waste management and remediation services 1.15 Moderate 61 - Educational services 0.87 Moderate 62 - Health care and social assistance 0.82 Moderate 71 - Arts, entertainment and recreation 1.14 Moderate 72 - Accommodation and food services 1.14 Moderate 81 - Other services (except public administration) 1.03 Moderate 91 - Public administration 1.05 Moderate Source: Statistics Canada, Canadian Business Counts, December 2019

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Economic Baseline Analysis – Yellowknives Dene First Nation

The purpose of this section of the report is to provide an economic and demographic breakdown of the Yellowknives Dene First Nation. All data was sourced from the Northwest Territories Bureau of Statistics. Notes on Data The data available for Ndilo and Dettah is collected through the territory government and is, therefore, a separate census system than Statistics Canada’s census of population. Typically, Statistics Canada suppresses data for geographies with population sizes under a threshold of 100 people, and detailed breakdowns are often suppressed for populations in the 100s. Thus, it is pertinent to examine the most localized data available for this Joint Economic Development Strategy, despite some limitations. Demographics Figure 46 shows a breakdown of the demographics for Dettah and Ndilo. Age distributions show that Dettah and Ndilo have slightly similar age distributions to Akaitcho, with variances between 1% to 3%. The highest proportion (21%) of Dettah and Ndilo’s population is aged between 30 to 49 years old. Furthermore, 8.2% of the population is aged 65 years or older. Figure 46: Demographics

Total (Dettah & Ndilǫ) Akaitcho (#) (%) (#) (%)

Total Population 553 100.0 357 100.0

0 - 4 38 6.9 18 5.1 5 - 9 44 8.0 30 8.3 10 - 14 50 9.0 42 11.8 15 - 19 50 9.1 33 9.1 20 - 24 48 8.6 31 8.7 25 - 29 40 7.2 27 7.7 30 - 49 116 21.0 67 18.6 50 - 59 84 15.2 51 14.2 60 - 64 38 6.9 27 7.5 65+ 45 8.2 32 8.9

Male 294 53.2 196 54.9 Female 259 46.8 161 45.1 Source: NWT Bureau of Statistics - May 8, 2020

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Dettah Labour Force Information Located 27 km up the Ingraham Trail from Yellowknife, Dettah has a population of 178 people aged 15 years and older. Of those, 105 people are in the labour force, with 81 people (45.5%) employed and 24 (22.7%) unemployed. Out of the remaining 73 people not in the labour force, 27 indicated that they want employment.34 Figure 47: Dettah labour force information

Population 15 & Over 178

Not in the Labour Labour Force Force (NLF) 105 (58.8%) 73

NLF but wants a Employed Unemployed Job 81 (45.5%) 24 (22.7%) 27

Source: NWT Bureau of Statistics - May 8, 2020

34 The NWT Bureau of Statistics defines Not in the Labour Force as: Persons who were neither employed, nor unemployed during the reference period. This includes persons who, during the reference period, were either unable to work or unavailable for work. It also includes person who were without work and who had neither looked for work in the past four weeks, nor had a job to start within four weeks of the reference period.

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Ndilo Labour Force Information The Dene village of Ndilǫ located on the tip of Latham Island (the southern point of Yellowknife's Old Town), has a population of 243 people. Currently, 149 people or 61% of the population is defined as being in the labour force. Of those, nearly half (48.4% or 118 people) are employed and 31 (20.9%) unemployed. Those not in the labour force represents 98 people with 17, indicating they are seeking employment opportunities. Figure 48: Ndilǫ labour force information

Population 15 & Over 243

Not in the Labour Labour Force Force (NLF) 149 (61.3%) 98

NLF but wants a Employed Unemployed Job 118 (48.4%) 31 (20.9%) 17

Source: NWT Bureau of Statistics - May 8, 2020

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Appendix E: Background Document Review Background Document Review A detailed review of all relevant municipal reports and policy documents relating to economic development has been conducted. The table below provides a list of all of the relevant documents for each organization. Yellowknives Dene First Nation City of Yellowknife

▪ Community Readiness Initiative 2015 ▪ Citizen Survey 2017 ▪ Economic Development Strategy ▪ Community Plan and Community Plan ▪ Economic Readiness Strategy 2016 Background Report ▪ Labour Force Development Strategy 2016 ▪ Council Strategic Plan 2019-2022 ▪ Strategic Plan 2014-2019 ▪ Council’s Approved Vision for the Downtown ▪ Tourism Strategy 2017-2020 ▪ Creating Vibrancy in Downtown Yellowknife: 50/50 Site and Beyond ▪ Downtown Retail Revitalization Strategy 2019 ▪ Economic Development Strategy 2014-2019 ▪ Economic Development Strategy 2020-2024 ▪ Energy Action Plan 2015-2025 ▪ Strategic Waste Management Plan 2018 ▪ 10 Year Plan to End Homelessness 2017 ▪ Tourism Strategy 2015-2019 ▪ GROW: Yellowknife Food and Agriculture Strategy ▪ Visitor Services Strategy 2018 ▪ Yellowknife Airport Five-Year Business Plan 2018-2019 to 2022-2023 ▪ Yellowknife Business Incentive Strategy and Business Incubation Strategy Framework Joint City-First Nation Initiatives

▪ Strategic Planning Workshop Outcomes and Objectives 2019

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Yellowknives Dene First Nation Document Review Community Readiness Initiative 2015 Purpose: The purpose of the Community Readiness Initiative was to develop, in consultation with the Yellowknives Dene First Nation communities, a Community Readiness Plan to address the socio- economic impact of current and proposed major resource development projects in the region primarily related to diamond mining and the reclamation of Giant Mine. The initiative consists of eight strategic goals:

1) Improve education and skills development; 2) Strengthen self-governance and administration; 3) Facilitate economic development; 4) Improve health and wellness; 5) Foster environmental integrity; 6) Improve community infrastructure; 7) Strengthen traditional culture; and 8) Increase public safety.

Key Takeaways and Economic Considerations:

• The Labour force size in Ndilo and Dettah in 2009 was 444 persons. • Attainment of post-secondary education and specialized skills amongst Yellowknives Dene First Nation members is low. This is a barrier to accessing higher-wage employment in resource- related industries. • A land claim settlement would provide more certainty for Yellowknives Dene First Nation and allow them to have better financial partnerships with mining companies, particularly those located on claimed land. • Seven implementation activities were identified under Goal #3 (Facilitate economic development): 1) Recruit a community economic and land development specialist; 2) Develop a Yellowknives Dene First Nation Economic Development Strategy; 3) Develop a strategic entrepreneurship development plan for the Yellowknives Dene First Nation communities to build business capacity; 4) Determine a strategy on how Det’on Cho Management LP can improve return on investment on existing and future business ventures; 5) Improve engagement with Denendeh Development Corporation and the 7 corporations held within the Denendeh Investments Limited Partnership to foster synergies; 6) Facilitate improvements to employee attraction and retention strategies to increase Yellowknives Dene First Nation labour force participation; and 7) Reach agreement amongst Yellowknives Dene First Nation’s elected and administrative leaders on what socio-economic indicators are important to benchmark and track and then integrate these into Impact Benefit Agreements (IBAs) and community planning.

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Economic Readiness Strategy 2016 Purpose: The Economic Readiness Strategy is an economic strategy that sets economic goals for two different timeframes: (1) Pre-Land Title Settlement (2016-2020) and (2) Post-Land Title Settlement (Est. 2020 and beyond.

The goals for Pre-Land Title Settlement are:

1) Clarify, differentiate and strengthen economic and business development roles and responsibilities; 2) Improve business development and management capacity amongst Development Corporation (DCC) Board and Yellowknives Dene First Nation members; 3) Improve economic and revenue policy development, capacity, collaboration and cooperation; 4) Improve infrastructure to support business development and community growth; 5) Expand and diversify Yellowknives Dene First Nation and DCC income streams; and 6) Establish a Yellowknives Dene First Nation Land and Community Legacy Trust.

The goals for Post-Land Title Settlement are:

1) Clarify economic development jurisdiction and strategic partnerships; 2) Increase economic development through land and resource development opportunities; 3) Improve Yellowknives Dene First Nation’s community business development; and 4) Expand and diversify Yellowknives Dene First NationS’s income streams.

Key Takeaways and Economic Considerations:

• The strategy identifies businesses offering authentic tourism experiences as an economic opportunity. • Small business development could be an opportunity with businesses based in Ndilo and Dettah, taking advantage of their proximity to the City of Yellowknife. • There may be administrative employment opportunities after land claim is settled due to expanded administrative roles concerning self-government. This could include employment- related to economic development, infrastructure in Ndilo and Dettah, land use planning regulation, health and wellness, policy development, communications/IT support and education. • The majority of current revenue comes from transfers from the federal and territorial governments. Some revenue is received from Impact Benefit Agreements and Yellowknives Dene First Nation’s rental properties. • Once self-government is in place, new revenue could be generated from taxation, user fees and leasing rates. Other revenue may be generated through mining projects in royalties, sales taxes, income taxes, land leases/rents and user fees. • Increasing the Det’on Cho Management LP profits is also a priority.

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Labour Force Development Strategy 2016 Purpose: The purpose of this strategy is to identify unique and creative initiatives and actions to address current and future labour force challenges.

Key Takeaways and Economic Considerations:

• The strategy identifies the following strengths: o Population dynamics including a relatively young population and rising education levels; o Access to employment opportunities; o Employment agreements and policies that include preferential hiring practices; and o Access to education programs and financing. • The strategy identifies the following challenges and threats: o Education and training levels that are below the Territorial average; o Social challenges and workplace issues; o Long-term employment prospects; o Retention and advancement concerns; and o Lack of employment program coordination and labour market information. • There are six goals in the strategy: o Establish a Centre of Excellence for Learning, Skill Development and Employment; o Create and encourage participation in education, training and employment preparation programs and services; o Provide opportunities for Yellowknives Dene First Nation members to access and maintain employment at all levels; o Provide opportunities for Yellowknives Dene First Nation members to advance into technical, skilled, professional and management positions; o Prepare Yellowknives Dene First Nation members for current and anticipated employment opportunities in preparation for self-governance; and o Respect traditional and cultural values in learning, skill development and employment programs • The overall cost of the strategy is estimated at $10.75 million over five years. • In 2014, Ndilo and Dettah, with a high school diploma or higher was 51.5% and 41.7%, respectively. This compares to an NWT average of 73.6%. • Labour force participation rate in Ndilo and Dettah in 2014 was 56% and 69.7%, respectively. This compares to 73.4% in NWT.

Strategic Plan 2014-2019 Purpose: The overall vision for the strategic plan is:

A Healthy and Sovereign Dene First Nation with Excellent Governance

The strategic plan has three themes:

1) Investing in the youth

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2) Securing resources for Yellowknives Dene First Nation’s economic future 3) Improving governance and communications

Key Takeaways and Economic Considerations:

• Yellowknives Dene First Nation wants recognition of Weledeh lands, resources and treaty rights • Aims for better Impact Benefit Agreement (IBA) deals and more benefits for the Weledeh people • Intervention in Canada-GNWT Lands and Resources Devolution Agreement to protect the rights of members • Need investment in most vulnerable people such as Elders, children, those living in poverty and those suffering from mental health and addictions issues • Significant emphasis on workforce skills training such as skilled trades, apprentices, leadership skills, management skills and early childhood development education.

Tourism Strategy 2017-2020 Purpose: This is a strategic document that lays out how the development of tourism should be accomplished in Yellowknives Dene First Nation communities. The strategy aims to develop a Yellowknives Dene First Nation tourism industry that offers a differentiated product at a reasonable price and, over time, building the brand and quality of tourism offerings so that profit margins can be increased.

Key Takeaways and Economic Considerations:

• The target markets are cultural explorers and authentic experiences. Targeting people that are seeking out authentic cultural experiences. • Yellowknives Dene First Nation must control the demand for its services to offer quality and authentic experiences to guests. It can’t be all things to all people. • Tourism operators need time to acquire service skills and knowledge. By offering services to fewer guests at first, they can build their expertise and ramp-up to offer quality experiences to more tourists over time. • Quality control is integral to a good long-term tourism strategy. • The strategy recommends starting a Yellowknives Dene First Nation tourism association that would charge an admission fee to visitors and use this fee to develop the tourism industry further. • There was a plan for a $25 million luxury aurora viewing lodge near Dettah, but this project has since been put on hold with no definitive timeline for resuming construction. • Few tourists book cultural experiences in advance of their arrival to Yellowknife. The strategy recommends marketing services to tourists once they arrive in Yellowknife. • The strategy calls for a visitor information centre in Dettah or Ndilo, a small arts and crafts retail outlet in Yellowknife and multi-lingual signs at the entrance to each community.

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City of Yellowknife Document Review

Citizen Survey 2017 Purpose: The purpose of this document is to provide a picture of how residents feel about various aspects of the city. The research objectives of the survey were:

1) Identification of important community issues; 2) Assess perceptions of the quality of life in Yellowknife; 3) Assess perceptions of downtown Yellowknife; 4) Measure the importance of and satisfaction with municipal services; 5) Assess perceptions of the City’s performance overall and in key areas; 6) Determine the perceived value for taxes; 7) Measure contact with the City and satisfaction with the City’s customer service; and 8) Gauge interest in participating in various forms of public consultation.

Although the survey is not specifically related to economic development. It relates to economic development, such as perceptions about the quality of life, perceptions of downtown, perceived value for taxes and community issues that are important to residents.

Key Takeaways and Economic Considerations:

• Overall, most citizens (90%+) rate the quality of life in Yellowknife as ‘very good’ or ‘good.’ • Residents identify poverty/homelessness and the high cost of living as reasons why the quality of life is viewed as getting worse over time • Overall, citizens have a negative view of downtown Yellowknife. The majority of residents disagree with statements that downtown is ‘vibrant and exciting, clean and safe.’ • Poverty/homelessness is the biggest social issue identified by residents. The economy, municipal government services and transportation are also issues but much less important than poverty/homelessness • General satisfaction with City-provided services is high • Residents don’t believe the City is encouraging a diverse supply of housing

Community Plan and Background Report Purpose: The Community Plan is the long-term plan (15-25 years) for land use planning and development in the City of Yellowknife. The purpose of the Plan is to guide development in the community through a vision, objectives and policies. The vision for the plan is the same as the vision for Council’s strategic plan. The plan is informed by a background report that takes into consideration:

• Historical land use development and projected land use development needs, challenges and opportunities (residential, commercial, industrial, institutional etc.); • Economic, environmental and social goals found in other City strategies and Council strategic plans;

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• Demographic trends and projections; • Economic trends and projections; • Physical geography; and • Other relevant data related to land use.

Key Takeaways and Economic Considerations:

• Population growth is projected to be modest. Increase of approximately 2000 residents by 2035 to about 23,000 residents. • Most land development will be focused on infill within the City’s existing built-up areas. Very little greenfield development on previously undeveloped land will occur. • The plan emphasises improving housing choice through different policies such as incentivizing lot-splitting, encouraging mixed-use development, allowing more density in downtown and surrounding neighbourhoods and relaxing parking restrictions. • There are policies aimed at improving retail commercial opportunities in the downtown through more flexible zoning, increasing the population living downtown and improving active transportation infrastructure. • The background report indicates that there has been a shift in employment to public administration and the service sector with relatively fewer jobs in manufacturing and extractive industries. Projections suggest that this shift will continue with proportionally more jobs in tourism, services and public administration versus resource related jobs, particularly in mining. • Two large former mines (Con and Giant) within City boundaries limit future development. opportunity due to contamination on both mine sites. These sites are in the process of being remediated. There is some economic activity related to remediation, but long-term there is uncertainty about what uses would be permitted on these sites. • Housing affordability and adequacy is a major challenge for many of the city’s residents. There is a considerable need for more affordable housing options related to both market and non- market housing.

Council’s Approved Vision for the Downtown Purpose: This document details the vision that Council has approved for downtown Yellowknife. The overall vision is:

Downtown Yellowknife is a lively, welcoming, bright and inclusive Northern city centre that serves its residents and welcomes the world. Downtown builds on our unique culture and history, providing an attractive combination of retail, housing, entertainment, government services, workplaces and public spaces.

The vision has four key aspirations:

1) Downtown is vibrant – Diverse shops, restaurants, retail stores and entertainment options make downtown vibrant.

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2) Downtown is sustainable – It is a supportive, consistent, safe and welcoming environment that maximizes the social, economic and cultural well-being of all people. 3) Downtown is accessible – Through active transportation options and public transit, all of Yellowknife is easily linked to downtown. 4) Downtown is the heart of our capital – Downtown reflects the heart of the NWT. Downtown is the common bond that ties residents together.

Key Takeaways and Economic Considerations:

There are 5 main goals that contribute to Council’s vision for downtown revitalization:

1) Coordinate and leverage substantial public sector investment of major planned projects to catalyze private development. This could include providing development incentives, creating a Business Improvement District, allowing higher density residential development and developing a comprehensive parking strategy to meet the needs of downtown workers, businesses and residents. 2) Enhance the ground floor environment so that is more attractive for pedestrians and commercial retailers. This could include more art, more street furniture, more programmed space and more aesthetically pleasing street fronts. 3) Provide more housing downtown. Adjust zoning to allow more flexibility for housing development. Consider incentivizing downtown residential development. 4) Improve connectivity through promotion and improvement of active transportation and public transit. 5) Create a downtown for all. Actions can include more public art and beautification, increasing safety and attractiveness by addressing social issues such as homelessness and substance use, supporting cleaner streets and sidewalks through incentives and more waste receptacles and consideration of updating the noise by-law to include a “good neighbour” clause.

Council Strategic Plan 2019-2022 Purpose: The purpose of the Strategic Plan is to set goals and objectives for the Council over 4 years. The document states that the City’s vision is:

Yellowknife is a welcoming, inclusive, and prosperous community with a strong sense of pride in our unique history, culture, and natural beauty.

The strategy has four goals:

1) Growing and diversifying our economy; 2) Delivering efficient and accountable government; 3) Ensuring a high quality of life for all, including future generations; and 4) Driving strategic land development and growth opportunities.

Although all of the goals are related to the economy, goal #1 and goal #4 are the goals most closely tied to economic development.

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Key Takeaways and Economic Considerations:

• The main economic objectives for growing and diversifying the economy are: (1) Fostering a robust and diversified tourism sector; (2) Maximize benefits from an expanded post-secondary institution; and (3) Refresh and implement a Yellowknife economic development strategy. • The main objectives for strategic land development and growth opportunities are: (1) Diversify development options; and (2) Promote development across the city with a specific emphasis on downtown redevelopment. • Objectives in the strategy related to climate change adaptation and mitigation, improving public transit, addressing homelessness and developing a master plan for arts and culture also support economic development.

Creating Vibrancy in Downtown Yellowknife: 50/50 Site and Beyond Purpose: The purpose of this report is to provide high-level strategic guidance on four topics:

1) Positioning the 50/50 lot for future success; 2) Formation of a City Development Corporation; 3) A Downtown Revitalization Strategy; and 4) Economic development as a tool for downtown redevelopment.

Key Takeaways and Economic Considerations:

• The report had two main conclusions with respect to the 50/50 lot: 1) For the 50/50 lot to reach its full potential would likely take several years and would also need to be patient and wait for the optimal end-user of that property; and 2) A redevelopment of the 50/50 lot on its own would not solve all of the downtown issues, and a broader look at downtown revitalization is required. • There are several challenges that make it unattractive for a private developer to develop the 50/50 lot in the short-term including legal uncertainty, complex ownership, zoning complexity and a challenging downtown real estate market. • The report recommends that the City work to clarify the legal issues, allow more flexible zoning including upzoning and consider development incentives such as reduced development charges or reduction in property taxes. • The report recommends animating the site with pop-up art, music, or temporary markets in the interim to make the space more active and attractive. • The report advises that the City investigate the potential of setting up a municipal land corporation but only if it makes sense financially and if it aligns with City strategy • The report also recommends pursuing downtown revitalization outside of the 50/50 lot. This includes: o Incentivizing residential development; o Improving pedestrian/cycle connectivity;

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o Improving design guidelines for buildings to make them more attractive and pedestrian friendly; o Supporting creation of a Business Improvement District; o Discouraging surface parking lots downtown; o Investing in the public realm; o Adding density; o Aesthetic improvements; o Leveraging the arts for neighbourhood revitalization; and o Restricting land supply elsewhere that would compete with downtown development • The report touches on broader economic development such as focusing on economic development where the City has a competitive advantage such as aurora tourism, testing of cold weather technologies, arctic research and sustainable mining.

Downtown Retail Revitalization Strategy 2019 Purpose: The purpose of this strategy is to support the City in working towards increasing the vibrancy of the downtown and successfully re-establishing it as the heart of the city. The strategy identified three challenges that need to be overcome in order for downtown retail to improve:

1) Lack of significant new market demand; 2) Retail space placement; and 3) Social problems.

Key Takeaways and Economic Considerations:

• There is more supply of retail space than demand. However, existing supply of retail space is often not suitable or attractive to prospective tenants. • There are few contiguous street-level retail spaces and this makes it difficult for retailers to get exposure for pedestrian traffic. • Improving the streetscape to make it more pedestrian friendly could improve the retail environment for street-front retailing. • Over-supply of retail space in indoor malls detracts from street vibrancy because customers are inside. • Social problems in the downtown such as homelessness need to be addressed in order for there to be growth in people visiting downtown retailers. • Retailers downtown need to differentiate themselves from retailers in suburban locations such as Old Airport Road. • High proportion of workers (2,700-plus daytime workers) and tourists (115,000 annually) downtown is an opportunity for retailers. • Lack of an agency or organization dedicated to downtown revitalization is a challenge (business improvement district or downtown business association). • Built form of street-level buildings is not conducive to street level retail. There are many blank walls.

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Economic Development Strategy 2014-2019 Purpose: This document maps out the City’s previous 5 year economic development strategy (2014- 2019). The document is a high-level economic strategy that identifies six common themes for the economic development mandate for the City:

1) Ensuring that Yellowknife offers a positive customer service environment; 2) Providing supports to small and emerging business; 3) Establishing Yellowknife’s position as a bold and innovative city; 4) Marketing Yellowknife to prospective investors and residents; 5) Understanding business needs and the opportunities they are seeking as they grow and develop; and 6) Reporting against a clear set of performance measurement indicators.

Key Takeaways and Economic Considerations:

• There is an emphasis on planning and policies to facilitate and promote business development such as incentives, clear regulations and easily accessible information • Recognition that mining and resource extractions are cyclical industries and greater economic diversification could balance out cycles. Focus on tourism, alternative and renewable energy, enhanced retail sector, and arts and culture. • Need to attract more residents and workers to live in Yellowknife permanently. Improved downtown retail options, educational and cultural activities could attract more residents. • A downtown post-secondary campus could be a hub of educational, social and cultural activity in downtown Yellowknife and be a catalyst for other development.

Economic Development Strategy 2020-2024 Purpose: This document maps out the City’s next 5 year economic development strategy (2020-2024). The document is a high-level economic strategy that identifies five goals with multiple strategies for each goal:

Goal Strategies

Yellowknife is a strong leader and • Implement an effective governance structure for advocates for economic development economic development • Advocate for developments and initiatives that strengthen the Yellowknife economy Yellowknife features a positive climate • Implement a business retention and expansion program for business • Improve the regulatory environment impacting the development of Yellowknife businesses • Increase access to lands for development

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Goal Strategies

Yellowknife is recognized as a great • Develop marketing and communications strategy place to live, visit and invest • Recruit tourists, investors, workers and prospective residents The rate of business establishment • Work to establish an incubator/accelerator and development is accelerating • Support business development initiatives • Support the development of local suppliers Our key economic sectors are growing • Mineral industry and becoming further integrated • Tourism sector • Polytechnic/University • Downtown revitalization • Cold weather testing • Agriculture and food

Key Takeaways and Economic Considerations:

• Stakeholder engagement and a business survey showed that most people are pessimistic about economic growth over the next 5 years. There is a lot of concern about the winding down of diamond mines and a lack of economic diversification to replace the economic activity generated by mining. • The strategy notes that several of the implementation activities related to the objectives from the previous economic development strategy were never followed through on. • Strategy calls for more incentives and policies to support growth of businesses such as zoning flexibility, streamlining bylaws and policies, and tax incentives. • Settling Akaitcho land claim would be a positive step for regulatory certainty although this is out of the City of Yellowknife’s control. City can still play a supportive role and advocate for settling of land claim. • Getting GNWT controlled land within municipal boundaries transferred to City is a priority • Downtown revitalization is a priority through parking reform, beautification, improved wayfinding and supporting development downtown. • A business accelerator/incubator could facilitate early-stage development of new businesses • Passing hotel levy bylaw should be a priority for the City • Supporting development of a Polytechnic in the downtown area is a key part of revitalizing the downtown. • Monitoring the implementation of the strategy will be very important. There should be better tracking of priorities and timelines for implementing tasks within the strategy.

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City of Yellowknife Energy Action Plan 2015-2025 Purpose: The purpose of the Energy Action Plan is to:

1) Endorse the proposed energy roadmap that will support both the community and the municipality in reaching energy targets; 2) Provide the necessary information for City Council to approve energy initiatives that are financially justifiable and environmentally responsible; 3) List and review the current energy-efficient capital projects and initiatives implemented by the City; 4) Fulfill the reporting requirements of Milestones 2 and 3 of the Partners for Climate Protection Program at both the corporate and community level; and 5) Highlight and celebrate the City’s ongoing work towards a carbon-neutral, zero-waste city with reduced greenhouse gas (GHG) emissions.

Although the Energy Action Plan is not directly tied to economic development, some aspects are linked to it, such as reducing energy costs and using energy sources produced locally and can support the local economy as opposed to importing fossil fuels produced elsewhere.

Key Takeaways and Economic Considerations:

• Goal to increase the share of renewable energy from 18% to 30% by 2025 for the community • Increase the share of renewable energy corporately from 50% to 70% by 2025 • The high cost of energy is a challenge for residents and businesses. Efforts to reduce energy consumption may lower the cost of doing business and give residents more disposable income and more revenue for business owners to reinvest in their businesses • The transition from heating fuel to wood pellet stoves could support preliminary plans in the NWT to develop a wood pellet industry • Greater organics collection contributes to better soil quality for gardeners and small-scale agriculture producers. Compost from organics can be used to build soil quality

GROW: Yellowknife Food and Agriculture Strategy Purpose: This strategy is a long-range plan for increasing community and commercial opportunities in Yellowknife’s urban food and agriculture system. The five main intentions driving the strategy are:

1) Growing the local food economy; 2) Growing connections to land, histories, culture and people; 3) Growing the level of food security; 4) Growing the amount of food that is grown, raised, hunted, fished and foraged; and 5) Growing links to regional and territorial food and agricultural initiatives, programs and funding.

There are five goals in the strategy:

1) Support the sustainable growth of urban agriculture and related activities;

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2) Enhance access to urban agriculture basics; 3) Support community learning opportunities around food and agriculture; 4) Encourage the growth of the Yellowknife food and agriculture economy; and 5) Build internal capacity for successful implementation.

Key Takeaways and Economic Considerations:

• The strategy focuses mainly on small livestock, commercial greenhouses, enclosed growing systems, fishing and foraging. • The average household in Yellowknife spends $10,456 per year on food. This is $1800 more than the average Canadian household. If some of that spending is redirected to local food, it could support existing and new local food producers. • Food and agriculture tourism could contribute to economic development. Consider developing an agri-tourism strategy in order to attract and sustain tourism investment in food and agriculture sectors. • Recommendation to feature more local food in marketing and branding content. • Suggestion that the economic development strategy place greater emphasis on food and agriculture. • Increasing frequency of the farmers market could help producers sell more product. Reduction of fees and charges for vendors could also attract more vendors. • Amending the bylaw to allow more types of agricultural uses in different parts of the city is recommended. For example, some types of market gardens on residential land should be considered as a permitted use.

Strategic Waste Management Plan 2018 Purpose: The Strategic Waste Management Plan builds on the waste reduction goals of the Corporate and Community Energy Plan summarized above. The main purpose of the plan is to reduce waste through education, improvements in waste diversion/recycling, increasing access to organics collection and various incentives and regulatory mechanisms.

Key Takeaways and Economic Considerations:

• Increasing access to organics collection and improving composting operations could lead to better quality compost that could be used for vegetable growing and other small scale agricultural activities. • Plan for a feasibility study on a Waste-to-Energy plant in 2022 may lead to economic opportunity if it is deemed feasible. If built, there may be some employment related to construction and operations of the plant.

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10 Year Plan to End Homelessness 2017 Purpose: This is a 10 year plan to end homelessness in the City of Yellowknife. The plan has four directions with three goals for each direction:

1) Leadership a. Strike a Yellowknife Homelessness Commission at the highest decision-making levels to champion the Plan; b. Increase affordable housing options for Yellowknifers; and c. Engage Yellowknifers in the movement to end homelessness. 2) Coordination a. Introduce an Interagency Council to coordinate homelessness services; b. Improve information and knowledge about homelessness; and c. Support the creation of homelessness strategies across NWT communities. 3) Reconciliation a. Advance the Calls to Action of the Truth and Reconciliation Commission; b. Embed an Indigenous lens to ending homelessness; and c. Support the enhancement of Indigenous wellness and cultural supports in Yellowknife. 4) Healing a. Enhance access to mental health and addiction supports; b. Ensure adequate emergency response capacity is in place to ensure zero exposure to deaths; and c. Develop and implement Northern Indigenous Housing First programs with wrap-around services.

Key Takeaways and Economic Considerations:

• About 20% of households in Yellowknife are in core need meaning housing is unaffordable, not adequate, or not suitable. • The pace of construction for purpose built rental units is not keeping pace with demand. • Yellowknife tenants pay one of the highest average rents in Canada. • The number of people experiencing chronic homelessness is 225. Episodic homelessness is estimated at 300. At high risk or transitional homelessness is estimated at 975. • In many cases it is cheaper to house and support people than it is to manage their homelessness through emergency responses involving police, shelters, hospitals and jails. • The Plan calls for a minimum of 180 affordable housing spaces (about 90 two-bedroom units) in addition to 200 rent support spaces. • There is a need for both market affordable housing (incentivized by zoning flexibility and developer incentives like fast-tracking applications) as well as non-market affordable housing built by government agencies, housing corporations and non-profit organizations.

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Tourism Strategy 2015-2019 Purpose: This is the City’s 5 year tourism strategy. The strategy identifies 3 goals with several associated actions:

• Enhance Yellowknife’s tourism management and partnership model; • Increase destination awareness; and • Improve community tourism infrastructure and services.

Key Takeaways and Economic Considerations:

• Each tourism goal has several associated actions for the 5 year duration of the strategy. Broadly, the actions involve: o Continued cooperation with the GNWT and Indigenous organizations to promote tourism including the ability to levy a tourist accommodation tax to support marketing and festivals; o Support growth of conference tourism and improve branding and marketing; and o Improve signage, wayfinding resources and continuing revitalization of downtown • The report highlights the fact that aurora tourism has experienced significant growth and that support for this type of tourism should be increased • Other opportunities include more festivals and events, encouraging more Aboriginal cultural tourism, incorporating local artisans into tourism, developing fishing potential of Great Slave Lake, promoting Old Town character and history and cleaning up and beautifying downtown.

Visitor Service Strategy 2018 Purpose: The Yellowknife Visitor Services Strategy is a plan of action to support and implement a new and effective visitor services model that will provide guidance towards a long-term and adaptable solution with the ability to influence visitor behaviour and positively contribute to the vibrant tourism industry in Yellowknife, the Great Slave Region and Northwest Territories.

The strategy does not provide a specific recommendation for a visitor’s centre but suggests that there are five different options that might work each with their own strengths and weaknesses:

1) Iconic Gateway Visitor Centre; 2) City Central Visitor Centre; 3) Public Building Visitor Centre; 4) Construction of New Visitor Centre; and 5) Decentralization (no bricks and mortar central visitors centre).

Key Takeaways and Economic Considerations:

• The strategy suggests that a city central visitor centre using existing space potentially in association with the Yellowknife Chamber of Commerce would be a good option because it would be downtown, cost-efficient and build on other synergies in the downtown area.

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• A high visibility and accessible visitor’s centre would improve the experience for visitors and complement other efforts to revitalize the downtown. • Getting the governance model right for the visitor’s centre is very important. It should be accountable to a Tourism Advisory Committee with members appoint by City Council and representative of a cross section of tourism-related businesses.

Yellowknife Airport Five-Year Business Plan 2018-2019 to 2022-2023 Purpose: The purpose of this plan is to provide a strategic plan over a five year timeframe for the Yellowknife Airport. There are six strategic goals associated with the plan:

1) Operate a safe and secure Airport that serves the North; 2) Proactively engage with aviation partners, airport stakeholders and Northerners; 3) Operate in a financially responsible manner, enhance operational efficiencies and deliver exceptional services and facilities; 4) Maintain a modern, healthy, transparent and accountable work environments; 5) Enhance air service and expand connectivity with the North in support of communities, tourism and economic development; and 6) Identify and promote Airport development in support of aviation, logistics and commercial opportunities.

Key Takeaways and Economic Considerations:

• The airport recently moved from a government funded model to a self-sustaining model whereby the airport collects its own fees and reinvests it back into maintenance and operation of the airport (Revolving Fund structure). • The new Revolving Fund structure is projected to fund all airport operations and generate a surplus that will be re-invested into capital improvements. • More than 1000 people are employed on the YZF airport campus and it supports 2000 indirect jobs. • The airport produces over $170 million in GDP and activity at YZF contributes over $45 million in various taxes. • The City of Yellowknife does not control the airport but receives transfers from the GNWT in lieu of municipal taxes as well as taxes directly from YZF tenants. • Over 575,000 passengers passed through YZF in 2016 up 7% from 2015. This number was 645,000 in 2018. • Direct flights to major Canadian cities of Edmonton, Calgary and Vancouver and serves as a hub for both passenger and cargo related aviation in the NWT. • The airport is actively trying to attract one-stop flights from Asia to Yellowknife to expand tourism opportunities. • Cold weather testing for new aircraft and other aviation related equipment is another growing economic opportunity for the airport.

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Yellowknife Business Incentive Strategy and Business Incubation Strategy Framework 2015 Purpose: This document provides a strategy framework for business incentives and business incubation. With respect to business incentives, the recommendations are:

• Identify business incentive activities that will enhance the overall health and sustainability of Yellowknife’s business community; and • Identify development incentives, as applicable, that will contribute to the achievement of specific development objectives and/or will help address specific development constraints, as they relate to 50th Street and Downtown Revitalization.

The recommendation for the business incubator is:

• Identify the next steps that the City can take regarding a small business incubator for Yellowknife based on input from small start-up and home-based businesses

Key Takeaways and Economic Considerations:

• Current City of Yellowknife Residential Development Incentive Programs: 1) Property tax abatement for residential construction or adaptive re-use of existing buildings, including ground floor commercial improvement or development in the downtown. This is 100% tax abatement for 5 years with potential for additional 5 year abatement based on revitalization merits of the project. 2) Property tax abatement for secondary area of city outside downtown with a declining tax abatement over 5 years (Year 1 – 100%, Year 2 – 80%, Year 3 – 60%, Year 4 – 40 %, Year 5 – 20%). • There are also various development incentives using tax abatement for industrial relocation to the Engle Business District, a brownfield redevelopment incentive and a Leadership in Energy and Environmental Design (LEED) incentive. These are all declining property tax abatements over 5 years. • There are other tax abatement incentives for heritage preservation, integrated parking structures, downtown multi-storey or below ground parking structures. • The City also offers rental rate reductions for groups interested in using City property to generate business. • Five strategies were given for business incentives for the overall Yellowknife business community: 1) Continue to have a business-friendly, customer-service culture at City Hall; 2) Enhance awareness of development requirements and market conditions; 3) Support information sharing and business networking opportunities; 4) Investigate the business licensing requirements for mobile, direct-selling and home- based businesses; and 5) Undertake marketing and communications initiatives that support and celebrate local and home-based businesses.

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• There are two incentive strategies for downtown specific businesses: 1) Implement initiatives that complement downtown revitalization goals; and 2) Enhance the City’s downtown-focused development incentive programs. • 8 steps were identified to facilitate the establishment of a physical business incubator; 1) Identify the ideal mix of incubator facilities and services for Yellowknife; 2) Research the availability and cost of suitable incubator space; 3) Prepare high level financial projections for the incubator; 4) Create a basic business plan for the organization; 5) Identify and pursue capital/start-up funding sources; 6) Establish the governance structure and board of directors for the organization; 7) Hire a business incubator manager; and 8) Develop and launch a website, programs and initial networking events.

Joint City-First Nation Initiatives

Yellowknives Dene First Nation and City of Yellowknife Joint Workshops Outcomes and Objectives 2019 Purpose: There were two workshops with the Yellowknives Dene First Nation and the City of Yellowknife. The first workshop was a validation and needs assessment. There were three objectives of this workshop: 1) To conduct a joint community needs assessment; 2) To initiate the process of relationship-building between the First Nation and municipal staff and elected officials and assess the level of commitment/ engagement and need for participation in the Community Economic Development Initiative (CEDI) program 3) To help facilitate the process of council resolutions committing to the CEDI program by clarifying CEDI for elected officials.

The second workshop had four objectives: 1) To continue the process of relationship-building between the First Nation and municipal staff and elected officials 2) Identify lessons learned from past experiences with economic development strategies 3) To review the what, why and how of the Joint Economic Development Strategy and finalize the Terms of Reference (TOR) for the Request for Proposal (RFP) process 4) Develop a shared vision for the partnership.

Key Takeaways and Economic Considerations:

• Workshop #1 o Focused mostly on learning from each other and relationship building. There were several exercises to help Yellowknives Dene First Nation and City of Yellowknife to learn about each other’s history and community context

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o Yellowknives Dene First Nation and the City of Yellowknife shared their planning documents, strategic priorities, existing economic development strategy and other important factors that guide their respective communities. • Workshop #2 o Both parties wanted Specific, Measurable, Achievable, Relevant and Time Bound (SMART) goals in the economic development strategy o Wanted risks identified with a clear plan on how to mitigate risks o Wanted outside the box thinking and creativity o Concerning cultural tourism, it needs to be authentic and wanted to tell their own stories, so others don’t sell the culture

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Appendix F: PlaceSpeak Survey Results PlaceSpeak Survey Results As a part of the Yellowknife and Yellowknives Dene First Nation Joint Economic Development Strategy, an online open-response survey was carried out using PlaceSpeak35 – a community engagement platform. This survey was open from June-August 2020 and received a total of 68 complete responses. The survey asked the community questions about their opinions of the joint economic development efforts of the City of Yellowknife and the Yellowknives Dene First Nation. The majority of respondents to the survey were residents of Yellowknife (38 respondents). There was also a good representation from Dettah (14 respondents) and Ndilo (11 respondents). Figure 49: I am a resident of…

Response Count Dettah 14 Going to school in Victoria, BC. 1 Ndilo 11 Yellowknife 38 Total 64

*Note that although there were 68 total responses, some individuals left questions blank, which led to a total of less than 68. Approximately half of the respondents (30 total) identified as a band member of the Yellowknives Dene First Nation. Figure 50: Do you identify as a registered band member of the Yellowknives Dene First Nation?

Response Count No 34 Yes 30 Total 64

35 https://www.placespeak.com/en/

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Over half of the respondents (52%) reported that they had been aware of the Memorandum of Understanding between the City and First Nation, which identified shared interests, including economic development, prior to the survey. Figure 51: Before this survey, were you aware of the Memorandum of Understanding between the City of Yellowknife and Yellowknives Dene First Nation, which identified shared interests, including economic development? (n=64)

48% 52%

No Yes

The respondents rated the various economic development activities based on how difficult they expected it for the City and the First Nation to work together. Tourism and local business development were the most often rated as a 1 (easiest) or 2. Land development and mining were the priorities that were most often rated as a 5 (most difficult) or 4.

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Figure 52: On a scale of 1 to 5, with 1 being the easiest and 5 being the most difficult, how easy would it be for the City of Yellowknife and the Yellowknives Dene First Nation to work together on each shared economic priorities? (n=64)

Tourism 34% 18% 23% 13% 11%

Local Business Development 17% 18% 42% 13% 10%

Agricultural Development 10% 28% 32% 18% 12%

Mining 7% 15% 43% 20% 16%

Land Development 3% 20% 30% 27% 20%

0% 20% 40% 60% 80% 100%

Respondents also included some other options for the City and the First Nation to work together on shared economic priorities. The responses are outlined in the figure below. Renewable energy, housing and educations are some key themes, among others.

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Figure 53: What other opportunities exist for the City of Yellowknife and the Yellowknives Dene First Nation to work together on shared economic priorities?

Response Church The city needs to work with YKDFN and have lots of meetings. Education - technical university Housing Indigenous education in all schools Outdoor activities archery, farming, hunting, tree planting, camps, carpentry, skidooing, fishing, logging? How to build tipis and igloos, trampoline parks, skate park. People are bored. There is nothing to do in Yellowknife, that's why I left when I turned 19. People from the City need to know more about our way of living, and our Traditional Values and Traditional Knowledge and our history of our land before this were Yellowknife. Recycling or energy ideas Renewable energy Renewable Energy Resources, get Yellowknife, Dettah and Ndilo 100% clean energy, localize internet services Renewable energy, and focusing specifically on developing YKDFN businesses in addition to the more general focus on local businesses The houseboats must be removed - pollution in the water To get youth and adults educated for jobs

Respondents also rated the factors expected to have the highest potential for improving the local economy for Yellowknives Dene First Nation members and the City of Yellowknife residents. Tourism was the most highly rated option. Agricultural development and local business development also received more positive responses (either 1 or 2) than they made neutral or negative responses. The responses were segmented for land development and mining, with substantial representation of responses in all parts of the spectrum from positive to negative.

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Figure 54: Which joint economic priorities have the highest potential for improving the local economy for Yellowknives Dene First Nation members and the City of Yellowknife residents, in your opinion? Rank the priorities from 1 to 5, with 1 being the highest potential and 5 being the lowest potential. (n=64)

Tourism 39% 23% 15% 10% 13%

Agricultural Development 30% 20% 20% 15% 16%

Local Business Development 26% 24% 16% 15% 19%

Land Development 19% 22% 27% 17% 14%

Mining 14% 24% 29% 19% 14%

0% 20% 40% 60% 80% 100%

Some respondents provided other economic opportunities that they felt the Yellowknives Dene First Nation and the City of Yellowknife should be collaborating on more closely. Infrastructure, education, renewable energy and traditional activities were some of the common themes observed in the Figure below.

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Figure 55: Are there other economic opportunities that you feel the Yellowknives Dene First Nation and the City of Yellowknife should be collaborating on more closely, in addition to the ones listed in [the previous question]? If so, please explain.

Response Fishing and guiding (1); Arts and Crafts (3); Wood business (3). Include young ones and teenagers. Arts/cultural Build a 100% autonomous system. Why do we rely so heavily on shipped goods? Where are the farms, the solar plants, the wind plants? Build a compost farm. Build the best damn recycling plant the world has ever seen. Build a gymnasium that is free so the youth can hang out and exercise and meet each other playing dodgeball/volleyball for free. Free education. Education - technical university Indigenous education in all schools Infrastructure and housing Invest in youth and adult education based on "on the job" training through local jobs in all communities for a start to build a sense of prosperity for each YKDFN member. Manufacturing of renewable resources. Green initiatives. Renewable energy Renewable Energy Resources, get Yellowknife, Dettah and Ndilo 100% clean energy, localize internet services Renewable energy, and focusing specifically on developing YKDFN businesses in addition to the more general focus on local businesses Tourism - The City and YKDFN can work together for YKDFN to have their own business - Aurora viewing in Dettah and Ndilo location. Also to promote way of life all season. Run a ferry from Ndilo to Dettah to promote our way of life and make money for our people. Lands Jolliffe Island get rid of houseboats and houses currently there. Make cabins for tourists to learn and experience our way of life. Hand games demonstrations, cut, clean and cook fish on the fire. More activities like trapping demonstrations, hand games, singing, aurora viewing, dog sledding and ice fishing. Water guardians YKDFN needs more control over its land and the City can help to educate the City residents with understanding the difficulty with squatting, houseboats and so on.

Respondents to the survey listed the various ways they participate in the economy, with the option to select multiple responses if they participated in multiple ways. Half of the respondents mentioned working in full-time jobs or being retired. Further, 12% noted being business owners/entrepreneurs and 10% reported participating through everyday work. Only 1% of the respondents identified that they do not participate in the economy.

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Figure 56: Do you participate in the economy? If so, how? (Select all that apply) (n=64)

Full-time job/retired 50%

Business owner or entrepreneur 12%

Contract or casual work 10%

Providing services (supplies, resources, and 9% traditional skills)

Prefer not to say 4%

Selling traditional crafts and resources 4%

Part-time job 4%

No 1%

0% 10% 20% 30% 40% 50% 60%

Some individuals added in additional factors which they felt would help them participate more fully in the economy and their responses are listed below. Workshops, business/community supports and promotion of local culture/services were some of the common themes identified. Figure 57: What would help you participate more fully in the economy?

Response A business license and a permit to build. A lot of YKDFN members are on income support program because of health reasons and cannot work a regular job or part-time jobs, so to help these people, can offer gift certificates for any services (traditional skills or even cleaning jobs, etc.) would help a lot. Better food halls I can volunteer to feed or elders and homeless. Give them jobs and teach them culinary so they can eat. Give them skills to help them stand on their own. I can help by teaching my grandchildren the traditional Dene way of life through our history, our language. Respect our land. More local businesses with needed services. Workshops/Training YKDFN needs more support from the City of YK on jobs.

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The survey respondents also provided additional comments in a final open-ended question. The table below shows the comments that were provided. These responses were left in their own words, to avoid blurring their message. Figure 58: Is there anything else you would like to share?

Response A lot of YKDFN need assistance with just basic living day to day activities and basic healthy foods, healthy lifestyle living. Most population (YKDFN Members) have alcohol and/or drug-related problems, and that's an added challenge to all YKDFN members. Also selling traditional arts and crafts should be located in Ndilo Tourist shop in Ndilo and some only in Yellowknife a few days. Concerned about young people. Encourage young ones to own businesses. Funded daycare facilities to allow for people to go to school. I am all for development - but not at the expense Of those already living in Yellowknife or the businesses already established and paying the high taxes they pay - or those with residential properties that would also be affected by agriculture uses or even tourism. The city needs to keep in mind the development ideas and plans they promised to local residents and the planning Vision they used to sell people the various properties in and around the city. No surprises and no changes that would affect the property values or rights of those who live in this city and pay the taxes to keep it running. I am pleased to see this partnership, and hope it to be fruitful for all. I can't get a business license where I live because the property hasn't gone through probate yet. Are probate laws municipal? Because that's red tape. I didn't answer the question on how easy would it be for the city to work with YKDFN on the different categories because I don't know what the hurdles are. I personally think that downtown should be updated with regards to the center square mall. You should buy the building from out of town owners and make it into a college facility and or actually make it into a real mall. Should include a food court and seating area, variety of business that's beneficial to city. It is horrible currently and presents issues with moral. Variety of homeless people who drink openly downtown by City Square Mall and panhandling and then upset or curse if you say no. It is also bad as this Capital City of the North and happens when we had tourists. Anyways I believe Yellowknife has potential to become a even greater City if we can eliminate empty buildings, have more programs for local owners, control our downtown from panhandling and create more affordable and efficient services that people want. Anyways, those are some ideas and concerns I have as a Yellowknife residence. I think local business and tourism opportunities are the strongest way to build an ENDURING shared economic development. I recognize that mining, land development and other resource are likely most profitable. But they don't include community members at all levels and they don't have the same opportunity for many community members to develop lasting and proud ownership over partner businesses. I also think land and resource development will nearly always be much more contentious in nature and have opposition, and possible unintended long-term negative consequences in terms of relationship building, trust and environmentally.

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Response I think that this survey was worded difficulty. English + internet access is not readily available to some YKDFN Elders/citizens and also to certain Yellowknife citizens. Please consider other options for getting input from the community and prioritize hearing from our community! If the City is prepared to honour treaties that are in place then land issues should not be overwhelming. The Dene will either choose to negotiate or they won’t. Treaties/land claims must be honoured.

Neither party should be required to take the financial lead. This needs to be a partnership with each party bringing it’s available resources to the table.

Discussions need to be, as much as possible, transparent so the members of each community know the tone and level of cooperation in discussions. Securing land tenure for both YKDFN and City of Yellowknife has the largest potential benefit in the near term to unlock economic potential. Security of tenure, access and ownership issues around land are one of the largest barriers to business expansion and developing alternative and diversified businesses in and around Yellowknife. Support healthy access to food. Healthy access to ecosystems. Territorial acknowledgement, such as "You are now entering YKDFN Territory". Is there going to be any lost revenue accumulated through the City given to YKDFN in compensation to lost land entitlement from developments? Rename buildings, locations, parks with local cultural aspects, not just using leadership names (that is a colonial aspect). Give areas more cultural meaning. The City needs to be open minded in how it can take actions that benefit the economic development of the YKDFN and its members Think about something other than what goes in your pocket and work on our community. Our kids. You know, the future. Money is irrelevant, teach our youth how to live happy lives and the money will flow naturally. They want to make money. They don't have the skills though because they can't afford the 40 debt I put on myself so I can learn basic cooking and game design/media arts. Traditional/cultural. Polar bear at YK airport - not in this area. We need a church. We need a thing for the young kids to focus their lives. We sit against a Great Lake. YKDFN and Yellowknife working together to design, build, operate and maintain a marina would meet a lot of the objectives of this MOU. Boat and float plane slips and service, big boats to kayaks, encouraging people to get out on the water. Food, fuel, tourism, fisheries. Build it at the cross country ski lands, so in the winter it can stay open and service skiers, snowmobiles, dog teams, fisheries and tourism. Ensure YKDFN have a big role in the design, and also shadow in the Giant Mine lessons learned in the architecture so that story is remembered. A jointly designed, built, operated and maintained marina would meet most of the objectives of this MOU. Working jointly like this is the way NWT moves forward. Work with YKDFN on All Plans. YKDFN and City has lessons on collaboration and which ideas have more success and ease. Perhaps bring and show those successes. Mahsi. YKDFN and the City needs to understand our hardship when it comes to dealing with lands, water rights, the Giant mine, NWT Government and land claims.

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Appendix G: Business Satisfaction Survey Results Business Satisfaction Survey Results

A Triage BR+E Survey was commissioned to engage the broader business community, while also allowing for the identification of potential expansion or retention opportunities in the City of Yellowknife, Dettah and Ndilo, for follow-up on a business-by-business basis. 36 The survey results were compiled into a presentation which is included in this section. Methodology ▪ A random sample telephone survey was conducted with 100 businesses out of an initial sample of 1052 businesses. The rigorous survey approach resulted in a response rate of 19.7%, which is extremely high in the market research industry, where response rates average in the 1%-2% range. ▪ This scientific approach ensures that the results have a high level of accuracy and statistically represents the business community in Yellowknife. The key findings of this exercise are summarized below, with the full Business Satisfaction Survey report provided separately. ▪ Overall, business satisfaction in Yellowknife is strong at 86%, with 35% very satisfied and 51% somewhat satisfied. ▪ 41.7% indicate their level of satisfaction is more positive than 12 months ago, compared to 9.2%, indicating more negative, representing a net improvement of 32.5%. ▪ Businesses were asked to rate their satisfaction on 20 different factors affecting their business performance. Only 2 of these factors had a satisfaction level of less than 50% satisfaction. ▪ The factors with the lowest levels of satisfaction were: Availability of adequate housing, Availability of public transit service, Availability of skilled labour, Availability of unskilled labour. ▪ When considering what factors are statistically most likely to lead to improved business satisfaction, the top priorities are Availability of adequate housing, Availability of public transit service, Availability of skilled labour, Availability of property for purchase or lease. Addressing these top- priority business factors through review, adaptation, or sustained attention is most likely to lead to higher business satisfaction.

36 Triage BR+E is a telephone-based survey of businesses in a community, developed by MDB Insight, which provides pertinent information to help local governments expand and retain the local business base.

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Appendix H: Stakeholder Interview Key Themes Stakeholder Interview Key Themes

As part of the stakeholder engagement component of this work, MDB Insight engaged with 20 stakeholders from the City of Yellowknife and YKDFN via 30-minute phone interviews. Below is a summary of the key themes that emerged from these consultations. COVID-19 – A Significant and Ongoing Challenge Like most of the world, the Yellowknife region has and continues to be significantly challenged by the recent outbreak of COVID-19. There was a strong consensus amongst stakeholders that the pandemic has drastically impacted the economy, with high levels of business uncertainty and job losses resulting from businesses downsizing or closing. Small, family-owned businesses were identified as being at high risk, as are core industries for the Yellowknife region such as mining and tourism. However, due to the geographic remoteness of Yellowknife and strict border control, the window of business closure within Yellowknife was substantially smaller than other regions in Canada. In addition to the significant economic pressure associated with COVID-19, stakeholders noted that the pandemic has further exposed food security across the region. With already fragile supply lines going into northern communities, many stakeholders felt that COVID-19 has enhanced disruptions. Local farmers are also struggling due to the lack of migrant workers able to access the region. Furthermore, all stakeholders commented on how COVID-19 seems to have either increased or made more apparent the numerous social issues (e.g. drug/alcohol addiction and homelessness) present in the region. With many residents unable to leave their homes and many losing their jobs, these issues have become harder to ignore. Many interviewees also highlighted the perception of downtown Yellowknife as an 'unsafe' place. However, on a positive note, many people felt that COVID-19 has brought residents closer together and enhanced the level of community spirit with many neighbours helping each other during this time of uncertainty. Mining – The Importance and Fragility of the Mining Sector When speaking to stakeholders about key strengths and challenges facing the region, the mining sector was repeatedly mentioned. There was broad agreement that if someone does not work for the government, they most likely work for a mining company or a company that relies on the sector. Many stakeholders felt that mining has been the core or 'saving grace' for regional economic growth and employment history but that this growth has been steadily decreasing in recent years. COVID-19 has further highlighted the fragility of this sector with stakeholders concerned about the potential for mine closures leading to massive worker layoffs. For example, the pandemic has pushed Dominion Diamond, one of the region's largest employers, to the brink of a financial crash. Interviewees were concerned that if Dominion or another major mine closes, the resulting layoffs will lead to numerous residents leaving the region to search for other employment prospects. Furthermore, a downturn will place additional financial pressure on the economic arm of YKDFN, the Det'on Cho Management LP, which is a key player in the northern mining sector. On a more positive note, many interviewees felt there was still potential left in the mining sector. Increasing exploration of other minerals (e.g. gold and platinum) could lead to growth in the region. Additionally, stakeholders felt that improvements in environmental regulations over the past several

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years have been positive and could be better leveraged to market the area. Finally, positioning Yellowknife as a strategic hub for other northern-based mining activities by leveraging the airport was an opportunity. Tourism – An Uncertain Future In addition to the mining sector, tourism was repeatedly mentioned by stakeholders as being an important economic sector for the Yellowknife region. Pre-COVID, there was broad consensus that the industry was rapidly growing, with visitors drawn to the area primarily for aurora borealis viewing. During this time of growth, there had been an influx of unlicensed operators, particularly accommodation offerings (e.g. Airbnb) that the City and YKDFN were trying to manage better. It was recognized by stakeholders the absolute need for sustainable tourism to be prioritized to ensure residents do not feel overcrowded or swamped by visitors. Regarding recovering from COVID-19, stakeholders were unsure about prospects. The pandemic has stagnated near all tourism activities, with many local operators closing. Furthermore, interviewees were concerned that visitors would be discouraged from coming to the region if flight prices increase and routes close, combined with the broad unwillingness to travel internationally from key visitor markets (e.g. China) due to health risks. Overall, stakeholders did identify the potential to better collaborate between the City of Yellowknife and YKDFN on cultural tourism opportunities. However, it was stressed that any tourism collaboration must be done correctly to ensure the local indigenous culture is not appropriated. Managing Rising Cost of Living Another ongoing issue that stakeholders raised and is typical for remote northern communities is the high cost of living, which shows no sign of slowing down. Stakeholders mentioned that the high cost of living is often rated as the number one or number two issue voters would like political candidates to change. Respondents raised that those who do not have high paying government jobs typically work two to three jobs to make ends meet. Despite efforts by the City of Yellowknife and YKDFN to realize operational efficiencies, fees and taxes continue to increase each year at well above the inflation rate. The current COVID-19 pandemic has further highlighted the fragility of the northern economy, with the cost of food rising as supply chains are disrupted. Furthermore, the price of power was a key concern with residents frustrated that they pay the highest electricity costs in the country. Many stakeholders highlighted the need for more infrastructure investments such as roads and the airport to keep the cost of living low.

Fostering Greater Collaboration between YKDFN and the City of Yellowknife A core component of this economic development strategy is establishing a shared economic vision for YKDFN and the City of Yellowknife. As part of the interview process, stakeholders were asked to share ideas on potential collaboration and partnerships. A critical issue that emerged was resolving the ongoing Akaitcho Land Claim and self-government proceedings, which have been under negotiation since 2000. It was expressed that reconciliation is not an easy one and that building trust between both parties must be a core focus. By finalizing the ongoing land claim proceedings, stakeholders felt YKDFN would have a platform to address better some other issues (e.g. lack of affordable housing) and begin working with the City on economic development initiatives (e.g. a jointly run marina).

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Increasing cross-cultural training, greater recognition of YKDFN history, language and culture within the city (e.g. updating the visitor centre, road signage and public areas) and during important events (e.g. celebrating local indigenous artists) and representation within political bodies (e.g. Council) should be focused on. Overall, stakeholders seemed positive that this economic development strategy was a sign of the YKDFN and City relationship improving and was excited about the chance to realize the full economic and cultural potential of the region. Increase Workforce and Training Opportunities The final theme that emerged from the stakeholder sessions was the need for more workforce training and development opportunities, particularly for youth in the YKDFN. YKDFN respondents felt that Yellowknife is economically well-positioned because it has a large, young worker population but is not realized as there are poor high school graduation rates. Of those that do graduate, many lack strong english and mathematics skills, which prevent them from gaining meaningful employment. Stakeholders from the City of Yellowknife also shared their desire to hire more YKDFN employees, particularly in the construction sector, but that a lack of basic education qualifications were barriers. The continuation and expansion of successful programs such as the Dechita Naowo training program were mentioned as being of importance. This program provides YKDFN members training in job readiness/employment placements, environmental monitoring/land stewardship, personal growth and leadership. While more training and support resources are required for these communities, it is important to note they must be correctly positioned and operated to ensure long term engagement. Notable Opportunities Select stakeholder interviews identified the following economic opportunities to the region that should be taken into account in the creation of this strategy: ▪ Airport development, making Yellowknife a hub for far north travel ▪ Commercial fisheries and opportunities for an export market ▪ The film industry, leveraging local businesses to support visiting film production activity ▪ Commercial agriculture and the need to support commercial farmers with soil procurement for raised beds and access to land

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Appendix I: Targeted Workshop Key Themes During the week of July 6, 2020, members from MDB Insight (Kai Liepins, Natasha Gaudio Harrison and Paul Blais), Dillon Consulting (Dustin Martin), the City of Yellowknife (Janine Farmer) and YKDFN (Johanne Black and Lena Black) completed four virtual industry and community workshops. Each session lasted two hours and a detailed write-up of key themes gleaned from the sessions. The relationship between the City of Yellowknife and YKDFN has improved in recent years An overarching theme from the consultation sessions was how relations between the City of Yellowknife and the YKDFN have improved over time. The participants felt that the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) in September 2007 was a good step toward developing more positive relations. This joint economic development strategy is seen by many as to help more formalize this relationship so both communities can better prosper together and that it highlights the co-dependence the communities have on economic development activities. The overall success of the region depends on long term partnerships with high levels of open communication and faith in the other party to honour their word. It was underlined that this process is not an easy one and the more face to face interactions between City and YKDFN staff, the easier it will become to develop this relationship. Vision for the future When asked about what economic development means to them and their vision for the future, stakeholders stressed that it means providing meaningful employment for everyone with equal access to education and training. Greater co-ownership and partnership in economic development opportunities were seen as critical, as was helping to diversify the economy away from the cyclical non- renewables sector into areas such as tourism and agriculture. YKDFN participants also felt that they wanted to gain self-determination and have more impact on deciding the future of their communities in the region at large. Overcoming the challenge of COVID-19 ▪ The implications from the current COVID-19 pandemic was another common theme throughout the discussions. Stakeholders recounted how challenging the past few months have been from an economic lens – the closure of businesses and a significant reduction in the tourism and mining sectors – and from a social lens regarding the challenges faced with forced isolation. Social issues such as alcoholism and domestic violence were noted to have increased in some households. However, the respondents felt that overall, the community banded together strongly with neighbours looking out for each other. The local business community was also commended on being resilient in the face of this pandemic and that the region was fortunate only to have had limited business closure when compared to other parts of Canada. ▪ Looking forward, the economic impacts of the pandemic were extremely worrying for respondents. The closure of the borders is severely limiting the tourism industry with no sign of improving in the short term. Similarly, the reductions in the mining sector have broad ripple effects across the economy as mines lay-off staff or close operations. Stakeholders are hopeful that the economy will begin to recover but acknowledge that this will likely take several years.

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Tourism will be an essential sector moving forward but needs to be managed correctly Tourism was seen by stakeholders to be a bright light for further economic diversification over the long term. Members recounted how visitor numbers have spiked in recent years and the positive implications this has had on the local economy, with numerous new businesses and hotels opening up. However, sustainable tourism was stressed as being critical to the survival of the industry. For example, stricter regulations on authentic arts and crafts from the local region to prevent knock-off products being sold in local markets was deemed important. Additionally, creating an indigenous tourism operator training program or certification would help ensure that YKDFN history is retold accurately and by a facilitator with the appropriate local knowledge. This training could be passed to front line tourism staff (e.g. taxi drivers) who are the face of the tourism industry for new visitors and operators should be required to renew their certificate or be tested on their knowledge each year to retain their licence. YKDFN stakeholders also felt that the local airport misrepresented YKDFN culture as it portrayed images wildlife not native to the region (e.g. polar bears). Edmonton airport was highlighted as a good example of what could be done to update the airport to ensure the authentic local culture is presented to incoming passengers. Similarly, the creation of a new visitor information centre that is shared by YKDFN and City staff in the downtown core would be a valuable asset. This space could help share YKDFN history as well as key accomplishments from the City. Incorporating indigenous language throughout the city, or even partnerships with the local college to create a language training course could attract visitors to the region. As the economy recovers from COVD-19 and the borders begin to open, stakeholders wanted to see a big marketing push highlighting the benefits of a ‘staycation’ for domestic travellers. Canadians must know that we are open to businesses and that they will be welcome here, as they will be an important visitor market while the international market slowly returns. It is important that Yellowknife, Ndilo and Dettah position themselves differently from other Canadian destinations, highlighting the cultural aspects and beautiful environment in the region. Renewed interest in growing food, agriculture as an opportunity for both food security and a business opportunity. Another economic diversification area of interest was growing the agriculture, fishing and hunting sector. Both YKDFN and the City spoke about how dependent the region is on imports from the south, and how this has raised the cost of living. COVID-19 was seen to have highlighted how fragile global food supply chains can be, and so these stakeholders would like to see more food produced locally. The local farmers’ market was regarded as a huge success with opportunities for future expansion and greater incorporation of YKDFN produce and products. Similarly, when the current land claim proceedings are finalized, an idea put forward was the development of a fishery on the Great Salve Lake. There was an identified need to build local knowledge and capacity on agricultural practices and initiatives as a jointly owned greenhouse would be a positive step forward. Regarding business development, YKDFN stakeholders wanted to see more businesses within Ndilo and Dettah. Specifically, establishing a café or food truck at the end of the ice road would bring locals and visitors during the winter months and may help YKDFN youth gain employment. A review of local regulations to ensure that they are streamlined and uncomplicated would help locals start-up businesses.

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The mineral sector is important but should not be fully relied upon Overall, the mineral sector was still a critical source of jobs and economic development for the region, but it was felt that the ‘best’ days of the sector are now gone. When planning for the future, it is important that both the City and YKDFN be realistic about the likelihood of future growth and the potential economic implications if there are more mine closures. Diversification into other sectors such as tourism and agriculture is needed to ensure regional self-sufficiency. One mining company is investigating establishing a tourism experience were visitors can explore a new mine shaft and learn about the mining sector. Greater investigation into this product offering and others like it should be conducted as it serves to leverage an already established sector strength into a new economic opportunity. Land Development Initiatives (e.g. affordable housing) The current Akaitcho Process regarding YKDFN land claims is expected to soon finalize, with stakeholders excited about the economic development prospects this could bring. Specifically, the development of more affordable housing is highly needed and could occur on YKDFN lands once the claim is procced. Additionally, land could be allocated for docks and boat access as part of the potential joint marina economic development project by both parties. YKDFN stakeholders also discussed Jolliffe Island and how it may eventually be handed back to YKDFN and the potential for development in the long term. Greater training and development for the local workforce As highlighted above, for YKDFN youth, there are very limited job opportunities and education pathways that will support them in reaching meaningful employment. YKDFN and local industry outlined a desire to collaborate with the local college and government to establish more streamed training courses to help YKDFN youths finish high school and enter into some sort of post-secondary training. Skilled trades courses that service the local mining sector or construction industry was highlighted by industry as in need of more local talent. Ongoing support and training for YKDFN members entering the workforce is needed to help them adapt to their new role and ensure they feel comfortable in the organization.

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MEMORANDUM TO COMMITTEE

COMMITTEE: Governance and Priorities

DATE: March 15, 2021

DEPARTMENT: Economic Development and Strategy

ISSUE: Whether to adopt the proposed Implementation Plan for recommendations in the City of Yellowknife Economic Development Strategy, 2020‐2024.

RECOMMENDATION: That Council adopt the proposed Implementation Plan for the recommendations arising from the City of Yellowknife Economic Development Strategy, 2020‐2024.

BACKGROUND: During deliberation of the 2019 Budget, Council approved the capital expenditure of $50,000 for the purpose of retaining professional services to update the City of Yellowknife’s Economic Development Strategy that was completed in 2013. The City of Yellowknife issued a Request for Proposals (RFP) for this work and FWCO Management Consultants Ltd./GGI Platform developed the Economic Development Strategy (the ‘Strategy’). To assist with development of the Strategy, Council established the Mayor's Task Force on Economic Development in May 2019. The Task Force provided feedback and direction throughout development of the Strategy.

The Strategy was finalized in April 2020 and subsequently adopted for information by Council during the City Council Meeting on April 14, 2020. As part of the Economic Development Strategy, Administration was tasked with developing and bringing forward an Implementation Plan (the ‘Plan’).

The Strategy consists of five economic development goals with 2‐3 recommended strategies for each goal. The goals are:

1. Yellowknife is a strong leader and advocate for economic development; 2. Yellowknife features a positive climate for business; 3. Yellowknife is recognized as a great place to live, visit and invest; 4. The rate of business establishment and development is accelerating; and 5. Our key economic sectors are growing and becoming further integrated.

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The purpose of the Economic Development Strategy 2020‐2024 is to strengthen the economic base of the City and contribute to sustainable prosperity for residents and businesses. The Strategy includes a suggested implementation plan and identifies priority actions as well as outlines a method to determine success. Administration has proposed the Plan that reflects projects currently underway, anticipated funding for 2021, and strategic economic goals for 2021 and beyond. Members of the MTFED reviewed the attached Plan and expressed general approval on March 4, 2021.

COUNCIL POLICY / RESOLUTION OR GOAL: Council Goal #1 – Growing and diversifying our economy

Council Motion #0064‐20: That Council adopt the City of Yellowknife Economic Development Strategy, 2020‐2024 for information.

APPLICABLE LEGISLATION, BY‐LAWS, STUDIES, PLANS: 1. City of Yellowknife Economic Development Strategy, 2020‐2024; 2. Business Licence By‐law No. 3451, as amended; 3. Tourism Strategy 2015‐2019; 4. Visitor Services Strategy; 5. Retail Revitalization Strategy; 6. University Feasibility and Benefits Strategy; 7. Zoning By‐law No. 4404, as amended; and 8. GROW (Yellowknife Food and Agriculture Strategy).

CONSIDERATIONS: To meet the overall goal of a prosperous and thriving economy, especially faced with the economic impacts of COVID‐19, a swift implementation of the City’s Economic Development Strategy is essential. The Plan defines several initiatives, associated cost estimates, a prioritization of tasks, and a schedule for implementation.

Pandemic Context The COVID‐19 pandemic has, and will likely continue to impact Yellowknife’s economy for some time and this includes the local economy, businesses and residents. As a result, Administration will consider the implications of COVID‐19 on implementation of the proposed actions in the Plan and adjust timelines and focus as necessary.

Schedule The Economic Development Strategy spans from 2020 to 2024. The schedule is based on an estimated financial and resource commitment. The schedule can be revised should Council choose to increase or decrease annual budgets and Administration’s priority goals for the implementation of the Strategy.

Budget The Strategy has financial commitments based on recommended strategies, advertising and start‐up costs for suggested programs. Administration will propose a budget allocation annually to address the tasks of each respective year in the Strategy. The annual amount will vary from year to year depending

GOVERNANCE AND PRIORITIES COMMITTEE Page 2 March 15, 2021 DM# 642302 on the tasks to be completed in each year. The recommendations will be brought forward during the annual budget process for Council’s review and approval throughout the implementation of the Strategy.

Prioritization of Tasks The recommended prioritization of tasks within the Strategy is shown in the Plan. While all tasks are essential, some are required be completed prior to others or some are in greater need in the present context.

Along with the recommendations, the Plan includes detailed actions that provide a starting point for each of the recommended actions.

ALTERNATIVES TO RECOMMENDATION: 1. That Council not adopt the Implementation Plan at this time. 2. That Council direct Administration to make changes to the Implementation Plan as presented.

RATIONALE: Adopting the Implementation Plan will establish a plan to proceed with recommendations detailed in the report to work toward the goal of creating an environment that is conducive to attracting and retaining investment that will create employment, diversify the City’s tax base and generate wealth throughout the City. Once the Implementation Plan is officially adopted, Administration will continue to bring forward funding proposals and updates identified within the Strategy on an annual basis for support by City Council.

ATTACHMENTS: 1. Economic Development Strategy 2020‐2024 Implementation Plan (DM#627111); and 2. City of Yellowknife Economic Development Strategy, 2020‐2024 (DM#603435).

Prepared: March 4, 2021; JF Revised: March 8, 2021; KLT.

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Priority Action Specific Action Status Timeline Lead Cost

Oversight of the Economic Development Strategy

1. Develop a renewed Terms of Reference for  Terms of Reference – revise based on the current Economic Terms of Reference – will be March 2021 Economic Development Accommodated the Mayor’s Task Force on Economic Development Strategy and required roles and responsibilities related to reviewed/amended as part of overall and Strategy within existing budget Development (MTFED). (HIGH PRIORITY) the Strategy and submit to Council for approval. This will include Committee discussion at Governance and renewed focus on meeting three times per year to advise on Priorities Committee meeting. implementation of the Economic Development Strategy and support when needed.

2. Prepare an implementation plan which  Implementation Plan ‐ Present to the MTFED for approval and submit to Currently underway. March/April 2021 Economic Development Accommodated outlines the activities that will be Council for adoption. This plan outlines specific budget, steps, and Strategy within existing budget undertaken in 2020. (HIGH PRIORITY) responsibilities and partner organizations for 2020/2021 activities in the implementation plan.

3. Obtain, from the City Council, endorsement  2020‐24 Economic Development Strategy Adopted by Council on April 27, 2020 – Completed ‐ April Economic Development Accommodated of the 2020‐24 Economic Development Motion #0064‐20. 2020 and Strategy within existing budget Strategy, renewed Terms of Reference for the Mayor’s Task Force, and the implementation plan for 2020. (HIGH PRIORITY)

Key Initiatives for 2020‐21 (One Time Initiatives)

4. Implement a governance and operating  Destination Marketing Organization (DMO) ‐ Develop and finalize the DMO – Work regarding imposition of levy in Commence in Q4 Economic Development Accommodated structure for the DMO and visitor services DMO structure and funding. 2020 was delayed due to economic impact of 2021 and Strategy / Corporate within existing budget centre. (HIGH PRIORITY) Covid‐19. Services  Visitor Centre o Determine suitable venues and budget for a new Visitor Visitor Centre Work to commence $125,000 – City of Information Centre that is centrally located in the downtown Relocation of visitor centre to downtown immediately once Economic Development Yellowknife core that is accessible and welcoming for visitors. The new Visitor location initiated; Funding request submitted funding confirmed; $347,000 – ITI

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Information Centre will have: updated service standards, training to CANNOR; increased O&M funding request Relocation to be and Strategy /Community $471,984 requested ‐ for staff, manuals and procedures, advertising strategy, approved by Industry, Tourism and completed by Q4 2021 Services CANNOR standardized data collection, Mission Statement and local Investment (ITI). business and resident linkages as well as catering to visitor’s outside the NWT. o Develop model for operation of the Yellowknife Visitor Centre. Governance structure to be finalized as part of project to relocate the visitor centre.

5. Establish a Task Force to undertake a review  A Task Force will be formed with City, GNWT and stakeholder Zoning By‐law currently undergoing complete Q2 2021 Economic Development $35,000 (for of the regulatory environment affecting representatives to review and recommend revisions to municipal re‐write based on updated Community Plan. and Strategy advertising, economic development and investment in regulations, bylaws and processes and lobby for changes to the territorial Business License By‐law currently undergoing promotion and the City of Yellowknife. (MEDIUM PRIORITY) regulatory, licensing, and permitting regimes. review and will consult with business research for business  The Task Force will be provided with a Terms of Reference and statement stakeholders for input. Building By‐law is also Q4 2021/Q1 2022 navigator function) of purpose. to be updated in 2021.  Task force to examine how a regulatory report card, like that of the CFIB, could assist with this Task Force’s function. Task Force – to be considered for action late  A ‘pathfinding’ function (i.e. ‘navigator’) within Economic Development 2021 or early 2022 and Strategy will also be explored and deliberated on to work with businesses to navigate municipal and territorial regulations and processes they may encounter and find challenging when starting a business.

6. Work with the GNWT to facilitate the  Connect with the GNWT and determine next steps for transferring the Currently underway – regular meetings are Ongoing Planning and Accommodated transfer of untenured Commissioner’s Land. administrative control of untenured Commissioner’s Land. held between City administration and GNWT. Development within existing budget (MEDIUM PRIORITY)  Develop a letter to the GNWT requesting renewed efforts in transferring this land which will significantly increase access to lands within the City limits for residential, commercial and industrial development.

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7. Development a Mineral Resource Strategy.  Develop a Request for Proposal and engage a consultant to produce a To be considered for action as part of work Q3/Q4 2021 Economic Development $25,000 (for a (MEDIUM PRIORITY) Mineral Resource Strategy report to examine the mining industry related to Memorandum of Understanding and Strategy consultant and economic impact and opportunities to develop the industry and mitigate with Mineral Resources sector. engagement activities the negative impacts of mine closures. related to the Explore potential funding opportunities. strategy)

8. Commission an Arts & Culture Master Plan  Arts & Culture Master Plan ‐ Develop a Request for Proposal and engage Arts & Culture Master Plan – approved in 2021 Community Services $75,000 (Budget and update the existing Tourism Strategy. a Consultant for development of an Arts and Culture Master Plan Budget 2021 (December 2020) 2021) (MEDIUM PRIORITY)  Tourism o Identify and develop additional tourism products to increase off‐ Ongoing – continued partnership with NWT Ongoing, 2021 Economic Development peak and shoulder season visitation. This can include exploring Tourism; expanded patio program funding (to and Strategy opportunities to feature Indigenous culture and expanded facilitate increased physical distancing tourism experiences. requirements); partnership with YK Chamber o Tourism Strategy to be update. of Commerce on local programming.

9. Develop an integrated tourist, investment, Attraction Strategies Investment materials to be considered as a Initial work to Economic Development $40,000 (for worker and resident attraction strategy. part of work pursuant to MOU with Mineral commence in 2021 – and Strategy consultant) (MEDIUM PRIORITY)  Develop a Request for Proposal and engage a Consultant for preparing an Resources sector. completion subject to environmental scan of common branding and positioning and identify funding availability partners and common interests to leverage campaigns, promotional World Council on City Data (WCCD) to be activities and share tools for marketing the North – both as a place to considered for investment materials. visit and locate a business. Research and apply for potential funding opportunities.

Partnership/Membership Ongoing Economic Development Accommodated  Continue to represent the City on the Reseau en Immigration and Strategy within existing Francophone Territoires du Nord‐Ouest (RIFTNO) and Yellowknife budget. Immigration Partnership (YIP) committees to ensure open

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communication and strategies to successfully attract and retain Ongoing City of Yellowknife representation immigrants and newcomers to the area. on: RIFTNO, YIP, UPAC, Giant Mine WG/AB  Continue to support and advocate for the development of an effective and Visitor Centre Project Working Group. Polytechnic University and a main campus in Yellowknife. The City of Yellowknife currently is a member  Continue to represent City of Yellowknife interest on the Giant Mine of a Visitor Centre Project Working Group of Socio‐Economic Working Group and Advisory Board to maximize worker all visitor centres across NWT and GNWT ITI and resident benefits related to the Giant Mine Remediation work. to discuss common branding/positioning and identify partnership opportunities to attract tourists to NWT as a whole and pool resources and create comparability of data collection, etc.

10. Work with partners in reviewing the  Review effective business accelerator/incubator models across Canada Initial research will commence in Q1 2022 – 2022/2023 Economic Development $40,000 (for research, feasibility of establishing a business and explore a model (or combination of models) that can be successfully completion estimated to be 2023. and Strategy possibly via a accelerator and/or incubator in Yellowknife. implemented to grow business in Yellowknife. consultant or (MEDIUM PRIORITY)  Develop the feasibility of proposed design, capital and operation cost Funding opportunities to be explored. engagement activities projections and a business case outline that can be leveraged by and start‐up incentive potential stakeholders and used to garner interest from the GNWT or funding for an Federal government to secure funding for the accelerator/incubator accelerator/incubator) development and operation.  Partners will also be identified for this facility and what role the City of Yellowknife will play in its operation.

11. Implement the wayfinding strategy and  The Wayfinding Strategy Implementation plan is currently in 2020 – Kiosks installed, cultural brochure Q2 2021 Economic Development Accommodated signage improvements as outlined in the development and will be presented to Council and will identify priorities, being finalized in partnership with YKDFN and Strategy / Planning within existing budget City of Yellowknife Wayfinding Strategy, activities, timeline and budget. (expected Q1 2021). and September 2019. (MEDIUM PRIORITY) Development/Community 2021 – To be presented to Council in April Services 2021 for review and approval.

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12. Stage a forum to explore development of a  Brainstorm a suitable forum model that can bring together investors, To be considered for future action. To be considered in Economic Development $5,000 (engagement regional angel investor network or local business community and government partners – either through an 2022/2023 in close and Strategy activities) investment fund that could increase access engagement session or webinar to gather input. consideration with to capital for local businesses. (LOW Item 10. PRIORITY) Implemented on an Ongoing Basis

13. Implement a business retention and  Review and monitor economic conditions on an on‐going basis including 2020 – City of Yellowknife submitted data to On‐going Economic Development $10,000, bi‐annually expansion (BRE) program. (MEDIUM industries at risk or in growth. This will be fulfilled by a Quarterly market the World Council on City Data and will and Strategy (for survey activities, PRIORITY) research report on Key Performance Indicators (KPIs) relevant to the continue and expand this process by seeking data purchases, etc.) business sector. gaps in data and identify sources.  Conduct a series of biennial surveys of business license holders to track changes in the business climate, identify organizations that may be at risk Business license holder survey is being of closing or relocating operations and determine issues that are planned for Q3 2021. This information will Q3/Q4 2021 impacting on future location and investment decisions. An analysis of then be included in the first quarterly report these results will be used to develop strategies to mitigate key issues. for Q4 2021.  Use the survey results to develop an annual ‘business walk’ initiative.  Engage with at‐risk businesses, using the Business Navigator function to help retain businesses in the City.

14. Implement the investment, worker and  Create new website materials on Yellowknife.ca to support marketing New website materials will include: On‐going, annually Economic Development $75,000 (for resident attraction strategies. (HIGH Yellowknife as a great place to visit, invest, work and live. This includes a and Strategy marketing materials, PRIORITY) pdf and print document of an updated community profile for people to ‐ the quarterly business reports; Website materials are conferences, data live and work here, a business profile for people to invest and a tourism ‐ investment materials (including planned for Q4 2021. purchases, advertising profile for people to visit Yellowknife. These profiles can be used as mineral) and conference recruitment documents at conferences or in advertising. Investment and ‐ updated community profile statistics; sponsorships) employment data will be updated annually. and, ‐ tourism data pamphlet.

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ECONOMIC DEVELOPMENT STRATEGY 2020‐2024 ‐ IMPLEMENTATION PLAN

Priority Action Specific Action Status Timeline Lead Cost

 Create a conference schedule of economically important events for each Conference schedule is placed on hold for the Conference schedule year to participate in and identify who should be attending. This can moment due to COVID‐19 disruptions in is intended to be include the Geoscience Forum, trade shows, etc. conference schedules. updated biennially.  Create a marketing campaign/strategy with a target list of prospects when publishing the profile materials and information when updated. Business navigator  Expand on the Wayfinding Brand Ambassador program and identify timeline: see Item 5. champions and ambassadors of Yellowknife who can assist with disseminating positive messages for recruitment and retention.  Identify opportunities for co‐marketing by connecting with GNWT and community partners to strengthen messaging.  The Business Navigator will follow‐up with prospects and leads on a monthly basis to ensure marketing needs are met and determine effectiveness of marketing, assess any navigation needs of businesses, or facilitate general, unbiased connections between local suppliers/buyers for products and services through Chamber of Commerce or association Evergreen document currently underway. links. Evergreen document  Create an evergreen document to track major projects (both planned and expected in Q2 2021 present) that will be taking place in and around Yellowknife either by the and updated City, GNWT or Federal government and any major private developments biannually. that may be occurring. This will identify opportunities for Yellowknife to capitalize on major project work and the associated benefits, including targeting the attraction and retention of people to the North and provide continuous, rather than competing, work for local contractors and workers.

15. Review any proposed new bylaws, policies  Review new by‐laws, policies or plans with an economic lens to Staff is currently reviewing the business On‐going, Q4 2021/ Economic Development Accommodated or plans by applying an economic lens to determine any un‐intended barriers to economic growth and provide the license process and Business License By‐law Q1 2022. and Strategy within existing budget assess how the changes are likely to impact opportunity cost of these plans for an informed economic background to and reviewing reasonable service standards. on the local business climate. (MEDIUM changes being made on this level. PRIORITY)  Use this lens during the Business License By‐law re‐write.

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ECONOMIC DEVELOPMENT STRATEGY 2020‐2024 ‐ IMPLEMENTATION PLAN

Priority Action Specific Action Status Timeline Lead Cost

 Staff will review service standards and timelines with respect to business Staff expects this review to take place services (also identified as an item in the City Council’s Goals and following the Zoning By‐law review and for Objectives 2019‐22). possible inclusion as expanded 2022  Staff will review possible development opportunities for the downtown attraction/investment materials. area and beyond with respect to various business development incentives (like the Patio Incentive Program) and the Development Incentive By‐law to promote growth.

16. Assist key champions, as requested and  Using the Business Navigator function, work with champions in Memorandum of Understanding (MOU) with On‐going Economic Development Accommodated where possible, in their efforts to implement Yellowknife to help align strategies and initiatives and provide support Mineral Resource Sector approved on and Strategy within existing budget development strategies and key initiatives. including advocacy and resources to facilitate action. February 2020. (HIGH PRIORITY)  Identify opportunities to build on, or establish new, relationships through MOUs, for example, or agreements. Partnership with YK Chamber of Commerce  Identify major opportunities for partnership from the Joint Economic on local programming – Trailblazers, Development Strategy with YKDFN. #ShopYK, Shop Local, Be a Tourist in Your  Focus on implementing further the Agriculture Strategy to work with Own Town, Entrepreneur Month, etc. local agriculture and fishing groups to promote stewardship, training and the development of local markets and commercial producers. Joint Economic Development Strategy (for  Staff will identify opportunities to support, where possible, development adoption by both City and YKDFN Councils in of social enterprises and local supplier development programs and Q2 2021) identifies major opportunities for policies. partnership and a joint imp0lmentation plan will identify areas of priority and partnership.

Agriculture Strategy – Implementation Plan to GPC in March/April 2021.

17. Report back annually to the City Council,  Develop a performance measurement matrix based on four indicators A year‐end report will be presented in On‐going, annually Economic Development Accommodated Mayor’s Task Force and public on the (inputs, activities, outputs and outcomes) and prepare a year‐end report December 2021 to report on progress and and Strategy within existing budget progress made. (HIGH PRIORITY) back to Council, the MTFED and the public to demonstrate success and success of the implementation items in 2021. progress being made in the Economic Development Strategy 2020‐2024.

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ECONOMIC DEVELOPMENT STRATEGY 2020‐2024 ‐ IMPLEMENTATION PLAN

Priority Action Specific Action Status Timeline Lead Cost

This will highlight major wins and areas for improvement or focus for the future implementation of the Strategy.  The report will include a data analysis of key performance indicators (including the labour force, business data and related statistics), website analytics, municipal data (including budget and staff) and business information (gained through a business survey and business walks).

DM#627111

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City of Yellowknife

Economic Development Strategy, 2020-2024

City of Yellowknife City Hall PREPARED FOR 4807-52nd Street Yellowknife, NT X1A 2N4

FWCO Management Consultants Ltd./ GGI Platform 210-314 W Cordova St BY Vancouver, BC V6B 1E8 Telephone: (778) 379-5590 ext. 1 [email protected]

DATE April 3, 2020

City of Yellowknife –Economic Development Strategy

Table of Contents

1. Introduction ...... 1 1.1. Background ...... 1 1.2. Project Objectives ...... 1 1.3. Work Completed to Date ...... 1 1.4. Structure of the Document ...... 4

2. Situational Analysis ...... 5 2.1. Overview of Current Economic Conditions ...... 5 2.2. Economic Outlook...... 8 2.3. Implications for Economic Development Strategy ...... 11

3. The Economic Development Strategy ...... 13 3.1. Vision, Mission, Goals and Objectives for the City of Yellowknife ...... 13 3.2. Key Principles Underlying the Economic Development Strategy ...... 14 3.3. Objectives, Goals and Strategies ...... 15

4. Priority Actions and Performance Measurement ...... 30 4.1. Priority Actions – Plans for Implementation ...... 30 4.2. Performance Measurement ...... 37

Appendix I: List of Documents Reviewed ...... 39

Appendix II: List of Key Informants Interviewed...... 43

Appendix III: Economic Profile of Yellowknife and NWT ...... 44 III.1. Overview of Yellowknife ...... 44 III.2. The Northwest Territories: Economic Structure ...... 50

Appendix IV: Overview of Selected Sectors and Opportunities ...... 53 IV.1. Mineral Industry ...... 53 IV.2. Tourism ...... 57 IV.3. Post-secondary Education ...... 61 IV.4. Revitalization of Downtown Yellowknife ...... 63 IV.5. The Airport and Cold Climate Testing ...... 66 IV.6. Agriculture and Fishing ...... 68 IV.7. Value-added Manufacturing ...... 70 IV.8. Other Opportunities...... 70

City of Yellowknife –Economic Development Strategy

Appendix V: Summary of the Research Results ...... 74 V.1. Economic Outlook ...... 74 V.2. Advantages and Disadvantages of Being Located in Yellowknife ...... 77 V.3. Inter-relationship Between Economic Sectors ...... 78 V.4. Opportunities for Development ...... 80 V.5. Constraints to Development ...... 83 V.6. Recommended Priorities ...... 86

Appendix VI: Overview of the 2014-2019 Economic Development Strategy ...... 91

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1. Introduction

1.1. Background

Situated on the northern shore of Great Slave Lake, Yellowknife is the capital of the Northwest Territories (NWT). The city is located in the traditional territory of the Yellowknives Dene First Nation. It is a dynamic, inclusive community that combines modern amenities with a small-town feel and serves as the NWT’s primary hub for economic activity.

With a population of 20,607 (2017), Yellowknife is the largest community in the NWT and makes up 46% of the territorial population. In recent years, it has benefited from a healthy economy: as of December 2019, Yellowknife posted a three-month rolling seasonally adjusted unemployment rate of 3.9% – markedly lower than the national rate of 5.6% and the rate of 13.8% for the remainder of the NWT. The city is home to a high proportion of well-educated families who earn some of Canada’s highest average household incomes (the average family income in 2015 was $160,394). Household expenditures are nearly 50% higher than the national household average.

1.2. Project Objectives

This project involves the development of a five-year Economic Development Strategy (2020 to 2024) for the City of Yellowknife. The purpose of the strategy is to strengthen the economic base of the City and contribute to sustainable prosperity for residents and businesses. The decision to prepare an economic development strategy reflected two key considerations: the need to update the City’s previous economic development strategy, which covered the period of 2014 to 2019; and increasing concerns about the medium- and longer-term economic outlook for Yellowknife.

The Strategy will detail:

• Goals for economic development; • Specific strategies through which those goals will be realized; • Performance measurements for assessing the progress made; • An implementation plan which prioritizes the actions that will be taken in the short-term and long-term to implement the strategy. The strategy will define, for each action, the anticipated cost, the funding source and the lead or ‘champion.’

Implementation of the strategy will help to create an environment that is conducive to attracting and retaining investment that will create employment, diversify the City’s tax base and generate wealth throughout the City.

1.3. Work Completed to Date

In preparing the economic development strategy, we are working closely with the Mayor's Task Force on Economic Development which was established to provide input into the development of the City of Yellowknife’s 2020-2024 Economic Development Strategy (the “Strategy”) and ongoing advice in the implementation of the Strategy. We met with the Task Force four times:

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• Once to discuss their expectations for the strategy and review the methodology through which it would be developed; • A second time to discuss key opportunities and issues on which the strategy should focus as well as priority actions that the City should take to pursue these opportunities and address these issues; and • A third time to review the draft strategy, including the goals for economic development and specific strategies through which those goals will be realized. Based on the results, we then refined the goals and strategies and then developed a performance measurement strategy for assessing the progress made as well as an implementation plan which prioritizes the actions to be taken in the short-term and long-term. • A final time to review the implementation plan

In preparing the draft strategy, we have conducted:

• A review of research reports, plans, strategies, profiles, reports and other documents relevant to the City of Yellowknife and more generally the NWT. A list of some of the documents reviewed is provided in Appendix I.

• 35 interviews with a cross-section of 38 key informants who can comment on existing economic conditions, opportunities for development, major challenges, and potential actions that could be taken to promote further development. The key informants included 8 government representatives from the City of Yellowknife, the Government of the Northwest Territories (GNWT) and the Federal Government; 5 representatives from economic development organizations and chambers; 4 representatives of Indigenous organizations; and 21 representatives from industry. A breakdown of the number of key informants by sector is provided in the following table.

Key Informants Interviewed by Sector

Key Informants Summary of Key Informants Interviewed by Sector # % Number of Key Informants Interviewed 38 100% Number by Sector (key informants may be involved in multiple sectors) Mineral and mining industry 13 34% Government 8 21% Construction 6 16% Tourism 5 13% Economic development agency 5 13% Indigenous development corporation/business 4 11% Consulting 3 8% Education 3 8% Aviation, transportation, and logistics 3 8% Real estate 2 5% Film and television industry 2 5% Retail 2 5% Agriculture and fisheries 1 3%

The key informants who were interviewed are listed in Appendix II. The results have been incorporated into the main report and a review of key economic sectors and opportunities is provided in Appendix IV. A high-level summary of key findings is provided in Appendix V.

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• A survey of 195 businesses licensed in the City of Yellowknife. Most surveys were completed online, although a few were completed by telephone. After adjusting for duplicates (the same contact email for multiple licenses), invalid emails (e.g. bounce-backs) and emails that were never opened, we estimate that 736 business operators received email invitations and reminders, of whom 26% completed the survey. Taken together, these businesses employ almost 4,500 people. Some other major employers participated in the key informant interviews but not the survey. Of the businesses surveyed, 165 are small employers (defined as those employing 20 or fewer employees in the NWT), 20 are medium-sized (those who employ 20 to 80 employees), and 10 are large employers (employ more than 80 employees in the NWT). The results of the survey with businesses are summarized in Appendix V.

Number of Businesses Surveyed by Size of Firm (Number of Employees in the NWT)

Firm Size Businesses % Employees % Small (20 or less employees) 165 85% 791 18% Med (20-80 employees) 20 10% 846 19% Large (80+ employees) 10 5% 2,805 63% Total 195 100% 4,442 100%

The small firms employ an average of 5 employees, medium-size firms an average of 42 employees, and large firms an average of 281 employees in the NWT. Amongst those employers who were able to provide a breakdown:

▪ 92% of the employees working with the small firms (20 or fewer employees) reside in Yellowknife, 93% physically work in Yellowknife, and 13% are Indigenous. ▪ 58% of the employees working with the medium-sized firms reside in Yellowknife, 55% physically work in Yellowknife, and 9% are Indigenous. ▪ 51% of the employees working with larger firms (over 80 employees) reside in Yellowknife, 24% physically work in Yellowknife, and 13% are Indigenous.

The businesses are well-established, with one-half of those responding having been in operation for 15 or more years.

How long has your organization been operating in the NWT? (N=195)

Less than two years 10%

2 to 5 years 16%

5 to 9 years 15%

10 to 14 years 8%

15 to 20 years 9%

Over 20 years 41%

Other 1%

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The 195 businesses were drawn from a wide range of sectors (businesses could identify involvement in more than one sector). These sectors that were most commonly identified included consulting (21%); the mining, quarrying, and oil and gas extraction sector (14%); construction (14%); retail (13%); healthcare services (10%); arts, entertainment and recreation (10%) and tourism (9%).

In what sector or sectors is your organization primarily involved? (N=195)

Consulting 21% Construction 14% Mining, quarrying, and oil and gas extraction 14% Retail trade 13% Health & Care Services 10% Arts, entertainment and recreation 10% Tourism Services 9% Engineers, electricians and other professionals 7% Transportation and warehousing 6% Food Services and Drinking Places 6% Real estate and rental and leasing 5% Property Management & Services 5% Finance and insurance 5% Other 4% Industry, trade or professional association or membership group 4% Personal Care Services (Spa & Salon) 4% Social services 3% Educational services 3% Day Care 3% Hotels (Bed & Breakfast) 3% Telecommunications 3% Manufacturing 3% Government/public administration 2% Janitorial Services 1% Primary sectors (agriculture, forestry, fishing and hunting) 1%

1.4. Structure of the Document

Chapter 2 provides an overview of current economic conditions, discusses the economic outlook for Yellowknife, and then highlights the need for action to promote economic development. Chapter 3 first outlines the vision, mission and goals that have been established by City Council, defines a series of key principles on which the strategy is based, and then presents the economic development strategy including the goals and strategic actions. Chapter 4 outlines the implementation plan and a performance measurement strategy for assessing the progress made.

The appendices provide a listing of the documents that were reviewed (Appendix I) and the key informants who were interviewed (Appendix II). The appendices also contain a profile of the City of Yellowknife (Appendix III), an overview of the leading economic sectors (Appendix IV), and a more detailed summary of research results including findings from the survey of businesses (Appendix V) than is contained in the main body of the report. Appendix VI presents the goals and strategies that were recommended in the 2014-2019 Economic Development Strategy.

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2. Situational Analysis

This chapter first provides an overview of current economic conditions and outlook for Yellowknife and then highlights the need for action to promote economic development.

2.1. Overview of Current Economic Conditions

• The resource sector, particularly the mineral sector, has been the primary driver of the Yellowknife economy.

The economic growth of the NWT in the 20th century was largely based on the development of non-renewable natural resources including minerals, oil, and gas. There continues to be significant mineral potential associated with diamonds, gold, rare earth metals, lead, zinc, uranium, tungsten, rare earths, cobalt, bismuth, silver, nickel, copper, iron, sand, gravel and stone. The territory has an established mining infrastructure and geoscience data resources, although it has no smelters, refineries or pelletizers.

Diamond mining is the largest single economic contributor, accounting for 33% of GDP in 2018. With its three producing diamond mines, the NWT is the world’s third-largest producer of diamonds (by value). The value of diamond production in the NWT has averaged about $1.8 billion annually over the past 16 years and totalled $2.1 billion in each of 2017 and 2018 (which represents about 4.5% of Canada’s total mineral production). The graph below shows the value of non-metals mineral production (mostly diamond production) in the NWT over the last twenty years. Value of Non Metals Mineral Production (mostly diamonds) in the NWT 1987-2018 ($ million)

2,500

2,000

1,500

1,000

500

0

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1987 Source: Natural Resources Canada, Annual Statistics of Mineral Production.

Overall, mining, quarrying, and oil and gas extraction accounted for about 35% of territorial GDP in 2018, which is down from 46% in 2007 (primarily because of a decline in oil & gas extraction; the value of oil and natural gas production in the NWT has declined from over $500 million annually in the early 2000s to about $20 million in 2018).

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Three diamond mines operate in the NWT. The Gahcho Kué mine is located about 170 miles northeast of Yellowknife while the Ekati and Diavik mines are each located about 200 miles north of Yellowknife. Apart from diamond production, the mineral industry also generates significant economic activity related to:

▪ Exploration. Exploration expenditures totalled $919 million over the past 10 years including $78 million in 2019. The leading commodities in terms of exploration expenditures included diamonds ($501 million in expenditures over the past ten years), precious metals ($210 million) and base metals ($115 million). Junior companies accounted for $545 million of the $919 million (59%) in exploration expenditures over the 10 years.

▪ Remediation. The Giant Mine operated in Yellowknife just outside of the city centre from 1948 to 2004, generating over seven million ounces of gold. The Government of Canada became responsible for the mine site’s environmental liabilities when then-owner Royal Oak Mines went bankrupt in 1999. The $1 billion Giant Mine Remediation Project is funded through the Federal Contaminated Sites Action Plan.

▪ Purchase of products and services. Yellowknife serves as a major distribution hub for the mining sector. According to the Conference Board of Canada, the GDP associated with mining services totalled about $91 million in 2018. The City of Yellowknife also serves as a major supply, transportation and logistics hub for the mines in the NWT.

▪ Construction. Construction is the third largest sector in the NWT after mining and public administration. Along with commercial, residential and infrastructure development, the mining industry has been a major driver for the construction industry. The size of the construction industry has declined over the past three to four years when development of the Gahcho Kué mine was completed.

▪ Accommodation and food services. Business travel is also a major component of the tourism industry.

Yellowknife also serves as an important bedroom community for workers in the mining industry. According to the GNWT’s 2018 Socio-Economic Agreement Report, the NWT’s operating mines generated 1,592 jobs for northern residents in 2017, of whom 819 are Indigenous. Since 1996, when the first Socio-Economic Agreement was signed with Ekati Diamond Mine, the operating diamond mines have generated 27,000 person-years of local employment. Cumulative diamond mine employment including construction, operations, and closure from 1996 to 2017 was estimated at 56,642 person-years of employment, with 49% of employees being northern residents and 24% northern Indigenous. Significant additional employment is generated in the north and more specifically through the purchase of goods and services by the mines and expenditures in the community by mine employees.

• Public administration is also a major contributor to the local economy.

According to the NWT Bureau of Statistics, the public administration sector accounted for about 14% of GDP in the NWT in 2018, 25% of direct employment in the NWT and 26% of employment in Yellowknife. People in the NWT are more than four times as likely to work in public

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administration than those in other parts of Canada, where public administration accounts for only about 6.0% of employment. Including government-funded positions associated with other economic sectors (e.g. healthcare and education), nearly half (46%) of those employed in the NWT work (9,300 of the 21,400 people employed) for a public sector employer.

The GNWT is the leading single employer. According to the GNWT Public Service Annual Report 2018/2019, the GNWT employed 5,289 people as of March 2019, of whom 2,782 (53%) were located in Yellowknife and Dettah. This employment is funded largely through transfers from the Government of Canada. The budget for the GNWT totalled $1.9 billion for 2019-20, of which 68% came from the Government of Canada Territorial Formula Financing (TFF) grant, 12% from transfer payments from the Government of Canada (e.g. related to the Canada Health Transfer, the Canada Social Transfer, and Equalization), 13% from tax revenues (e.g. income, payroll, property, etc.), 2% from non-renewable resource revenues and 4% from general revenues. Under the funding arrangement between Canada and the GNWT, the budget is affected in part by the population of the GNWT; resource revenues are shared with the Government of Canada and Indigenous governments and have not been a major source of revenues for the territorial government. As such, the public administration sector serves as somewhat of a steadying force for the economy, to the extent that any economic downturn does not result in a decline in population.

• As the largest population centre in the NWT, Yellowknife’s economy is inextricably linked with that of the territory as a whole.

As such, the economy of Yellowknife is strongly affected by decisions made by other levels of government, particularly the GNWT. The previous economic development strategy, which covered the years 2014 through 2019, emphasized that the City should “consider its economic development responsibilities beyond the municipal boundaries and become a strong voice in the territorial economy.” In turn, as the major population centre, the seat of government, the major supply hub, and the primary centre for key services including healthcare, the economic health of Yellowknife can directly impact on the quality of life in other communities in the NWT. Yellowknife benefits from a strong NWT economy; the NWT benefits from a healthy Yellowknife.

• The economy in Yellowknife and NWT has been strong relative to other regions in Canada.

Yellowknife has had significantly lower unemployment rates and significantly higher labour market participation rates, household incomes (the average family income in 2015 was $160,394), and household expenditures (nearly 50% higher than the national average). A further discussion of economic conditions in Yellowknife and the NWT is provided in Appendix III.

• Partly because the economy has been strong, the City of Yellowknife (and to a lesser extent the GNWT) has not been very aggressive in terms of promoting economic development or diversification.

A wide variety of plans, studies and strategies have been developed by both levels of government. While notable progress has been made in some areas (e.g. tourism marketing), many of the proposed actions have not been implemented or are still in an early stage of implementation. For example, few of the 38 recommendations which were outlined in the City of Yellowknife’s 2014- 19 Economic Development Strategy were fully acted upon in that, to the extent that they would still be considered a high priority, most of the recommendations would still be valid today as the

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underlying issues still exist (a list of the recommended strategies is provided in Appendix VI). However, the City of Yellowknife has recognized the importance of placing greater emphasis on economic development; after a recent hiring and a change in title, the City now employs three FTEs in the Economic Development and Strategy division: a Director of Economic Development and Strategy, a Manager of Economic Development and Strategy and an Economic Development Officer.

2.2. Economic Outlook

• Upcoming closures of the diamond mines will have a significant negative impact on the economy in Yellowknife.

The three diamond mines have reached peak production and, according to estimates provided by Conference Board of Canada, production will begin declining in 2021. According to the Conference Board’s 2019 Territorial Outlook Economic Forecast, Diavik’s operating life is scheduled to end in 2025, Gahcho Kué’s in 2028, and Ekati well into the 2030s (contingent on developing the Jay pipe). The Conference Board projects that GDP associated with non-metal mining (i.e. diamond mining) in the NWT will decline from $1.8 billion in 2018 to $1.0 billion in 2025, which will also impact on other economic sectors including government. There is considerable uncertainty regarding timing of the economic shocks.

• Largely as a result of the anticipated closures, most of the businesses surveyed and key informants interviewed express significant concern about the economic outlook for Yellowknife.

Almost two-thirds (65%) of the businesses surveyed view the economic outlook for Yellowknife to be negative over the next five years. Only 22% of the businesses view the economic outlook for Yellowknife to be positive over next 5 years, including only 3% who view it as very positive. Some of those who view the next five years as positive noted they anticipate the medium term (i.e. 5 to 10 years out) outlook to be negative, expecting that the impact of the mine closures will not be felt in the next five years. The survey results understate the level of pessimism to the extent that the medium and larger employers tend to hold a more negative view regarding the economic outlook than do small employers. Those involved in healthcare tended to have the most favourable outlook regarding the future economy (although 56% still view the outlook as negative), while those involved in mining, tourism, consulting, retail, and construction tended to view the outlook more negatively.

Amongst those who view the economic outlook as negative, 93% of businesses attributed that to the closure of the diamond mines and anticipated downturn in the mining sector. Some of the other factors that were identified related to issues that impact on the competitiveness of the region (e.g. high costs of living and business operating costs, regulatory issues, on-going delays in resolving land claims) and a lack of government action, support and funding to address ongoing issues.

The businesses who view the economic outlook as positive over the next 5 years expressed some confidence that government recognizes the issue and will take action to promote development, that diamond mines will continue to be active beyond the five-year period and new mines may be developed, and that remediation activities (particularly related to the Giant Mine) will be an important economic driver over the next five years.

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Amongst the 36 key informants who were asked about the economic outlook, 24 viewed the economic outlook of Yellowknife as negative over the next five years while only 3 viewed it as positive. The remaining key informants did not express an opinion. Those who expressed a negative outlook attributed this to upcoming closures of the diamond mines, the impact that the closure will have on the broader economy, and a sense that the competitive position of Yellowknife and more generally the NWT has been eroding (e.g. other regions, including Yukon and Nunavut, have become attractive targets for exploration and investment). Those who viewed the outlook as more positive anticipated new development in some sectors (from tourism to education) and expect that the impact of closure would be offset by the extension of at least one mine and the impact of remediation activities.

• The health of the mineral sector is viewed as having a significant impact on the economic health of most existing and emerging economic sectors.

The businesses were first asked as to whether the economic health of their organization is significantly linked to the health of other particular economic sectors and then specifically about whether a downturn in the mineral and mining industry would have an impact on their organization. With respect to the first question, a majority of the survey participants (72%) agreed that the economic health of their organization is strongly linked to the health of other economic sectors. The sectors that were most commonly identified were the mining sector (identified by 57% of these businesses) and government (46%).

Most of the businesses (84%) expect that a downturn in the mineral sector will have at least somewhat of an impact on their organization. The survey results understate the potential impact of the downturn in the mineral and mining industry to the extent that the medium and larger employers tend to view the potential impact as much more significant. On a scale 1 to 5, where 1 is no impact at all, 3 is somewhat of an impact and 5 is a major impact, the average rating was 4.7 and 4.5 respectively amongst medium-sized and larger businesses. Although less significant, smaller firms also reported more than somewhat of an impact, providing an average rating of 3.4. When asked how they would respond to a downturn in the mineral sector, the most commonly identified strategies or approaches would be to lobby government to support and promote the mineral sector, help develop other sectors including tourism, support local businesses, address land claims and land-related issues, and streamline regulations. In term of how the business itself would react, the most commonly identified strategy was to lay off employees and/or relocate some or all of their operations outside of Yellowknife.

Overall, the aggregate employment of the 180 employers who provided estimates is expected to decrease by about 10%, most of which relates to positions outside of the City of Yellowknife although the affected workers may reside in Yellowknife. When asked about the factors that will most directly impact on the number of people employed in Yellowknife by their business over the next few years, the most common responses related to the state of the mining industry (22%), market conditions (14%), availability of skilled workers (13%), the economic outlook at that time (12%) and the extent to which government is actively involved in promoting development.

• The Yellowknife economy has some significant strengths on which we can build.

The strategy can build on key strengths associated with City of Yellowknife such as the unique culture and heritage of the Indigenous peoples of Yellowknife and the surrounding areas; the

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history of the city itself; the position of Yellowknife as the seat of government, a major hub for products and services, and strategic gateway to the north; its quality of life as a community- oriented, family-friendly city; and the young, well-educated population.

There continues to be significant mineral potential associated with diamonds, gold, rare earth metals, lead, zinc, uranium, tungsten, rare earths, cobalt, bismuth, silver, nickel, copper, iron, sand, gravel and stone. Several potential new mines are at various stages of in the development process such as Prairie Creek zinc mine development, TerraX Yellowknife City Gold, and Avalon Advanced Materials Inc.’s Nechalacho REE project.

The tourism industry has been experiencing consistent growth. Over the last five years, visitor numbers have increased by 42% in total, including a 58% increase in total leisure visitation. The latest statistics indicate that over 120,000 visitors travelled to the NWT in 2018-2019, spending just over $210 million. In particular, the leisure segment has grown sharply with visitors attracted by the opportunities for Aurora viewing, the scenic beauty of the region, and ample outdoor adventure and recreational opportunities for all seasons.

Yellowknife features a strong base of business operations and entrepreneurs. When asked to identify some of the advantages associated with being located in Yellowknife, businesses most identified existing networks; being able to serve customers in Yellowknife, other parts of the NWT and western Nunavut; and holding competitive advantages associated with being close to the market and having developed expertise specifically relevant to local conditions.

Opportunities for further development have also been identified across a range of other sectors and opportunities. When asked to rate the relative priority that should be placed on particular sectors and opportunities, businesses and key informants rated the mineral and tourism sectors highest but also identified important opportunities in other areas such as post-secondary education; establishing Yellowknife as a research centre for northern or arctic research as well as a centre for cold-weather testing; revitalization of the downtown area; further developing Yellowknife as a supply, transportation and logistics hub; and agriculture and fisheries.

• However, realizing this potential will require addressing a range of factors that serve to constrain development.

When asked about factors that constrain economic development in Yellowknife, businesses and key informants most commonly identified regulations, high operating and living costs, access to land for development, infrastructure (renewable energy, transportation and communications), and access to skilled workers. Some of these factors are largely beyond the control of the City, while others can be more directly influenced or addressed.

In a follow-up question, when asked what the City and others should prioritize when promoting economic development, businesses and key informants identified a wide range of areas including promoting further development of the mineral industry, tourism, and businesses in general; addressing issues related to regulations and land claims; working to revitalize the downtown area; marketing Yellowknife to potential investors, businesses, visitors, and workers; advocating for infrastructure development (particularly access to renewable energy and all-season roads); and increasing access to land for development.

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2.3. Implications for Economic Development Strategy

• Working with its key partners, the City of Yellowknife needs to take an aggressive approach to promoting economic development.

The full impact of the mine closures is unlikely to be felt within the next five years, which provides the City and others with a window of time in which to promote development. However, some key informants and businesses worry that there is still not a sense of urgency and the available window will not be used effectively.

In absence of strong action, there is real concern that the local economy will experience a sharp and lasting economic downturn, similar to what might have happened in the 1990s had the diamond mining industry not soon emerged with the closure of the gold mine. Both key informants and businesses expressed concern that, with the closure of the mines, there will be an associated decline in employment for Yellowknife residents, construction, sales of products and services and business travel. Some have suggested that the mine closures could also precipitate a decline in the local population and housing prices (similar to what happened in the 1990s), less access to education and training, a reduced tax base for the City, and an erosion in the donor base.

• As a municipal government, the City of Yellowknife has access to an important but limited range of levers it can employ to encourage investment and development.

Some of the actions that a city such as Yellowknife can take include:

▪ Provide leadership, direction and program support. Local governments work closely with their communities to develop strategic visions and develop strategies and action plans to bring life to these visions. There are many examples of cities taking active roles in areas such as economic development, entrepreneurship and small business development, the development of social enterprises, workforce development, public health, public safety, education and environmental sustainability. Cities champion particular goals and initiatives, provide regulatory or developmental frameworks as well as resources, and bring key partners and groups together to take action.

▪ Develop close partnerships with other key players such as other levels of government, neighbouring communities, project champions, key economic players, business improvement areas, and other stakeholders. There are limits to the resources that the City of Yellowknife itself can dedicate to economic development. This places a premium on establishing clear economic development priorities to best use their available resources and leveraging partnerships and resources contributed by or accessible to other parties. The key is finding areas of common interest and leveraging resources to coordinate and enhance the impact of development efforts.

▪ Advocate on behalf of key sectors and potential developments. Cities often play a key role in advocating for economic development opportunities with other levels of government, community residents, and other stakeholders.

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▪ Work to improve the regulatory frameworks. This can include, for example, streamlining regulations, filling gaps and addressing anomalies or overlaps in existing bylaws, improving coordination with other levels of government, and reducing the times required to process permits and applications.

▪ Promote awareness of the potential development opportunities, amongst business, entrepreneurs and residents within the community and potential investors located outside of the community.

▪ Implement investment attraction initiatives as well as talent and tourist attraction initiatives. Investment attraction commonly involves working with partner organizations, defining target groups and sectors, developing or updating websites and promotional materials, implementing campaigns to generate prospects and leads, responding to inquiries, working prospects through the funnel and tracking the results.

▪ Provide incentives for development. Property taxes are commonly used as an instrument to incentivize certain types of businesses and developments within the municipal boundaries. Strategies such as density bonuses, business improvement zones and easing of development requirements (e.g. regarding parking spaces) are also commonly used to help attract development activity.

▪ Support development through strategic investments in infrastructure (e.g. waste management, water supply management, drainage, roads and sidewalks, recreational amenities).

• There is no one single development that will offset the impact of the mine closures. Rather, an integrated approach will be needed which promotes development across a range of sectors and opportunities.

While there are several mines in various stages of the development process, the associated level of employment is significantly lower than that of the existing mines. While various other sectors offer important opportunities for development, each of these sectors is small relative to the size of the mineral industry.

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3. The Economic Development Strategy

This chapter presents the economic development strategy for the City of Yellowknife. This chapter first provides an overview of the overall vision, mission, goals and objectives established by the City of Yellowknife towards which the economic development activities are expected to contribute. It then outlines:

• A series of guiding principles for the strategy; • Specific goals for economic development; and • Specific strategies through which those goals will be realized.

3.1. Vision, Mission, Goals and Objectives for the City of Yellowknife

The City of Yellowknife adopted a community vision statement, mission, and a series of goals and objectives at its regular City Council meeting on May 27, 2019.1 The vision for the City of Yellowknife is:

Yellowknife is a welcoming, inclusive, and prosperous community with a strong sense of pride in our unique history, culture, and natural beauty.

The mission established for the City Council is that:

Council will provide leadership, vision, and direction in responding to the needs and aspirations of the community by working cooperatively with staff and residents to provide municipal infrastructure, programs, and services that are environmentally, socially, and fiscally responsible.

Council also established the series of goals and objectives outlined in the following table.

Council’s Goals and Objectives 2019-22

Goals Objectives 1. Foster a robust and diversified tourism sector Growing and diversifying 2. Maximize benefits from an expanded post-secondary institution our economy 3. Refresh and implement a Yellowknife economic development strategy 4. Enhance long-term financial and asset management planning 5. Integrate a culture of continuous improvement into corporate Delivering efficient and culture accountable government 6. Confirm clear service level standards for key City programs and services 7. Prioritize adaption to, and mitigation of, climate change Ensuring a high quality of life 8. Redefine public transit for all, including 9. Work with partners to address pressing social issues future generations 10. Develop a City of Yellowknife Arts and Culture Master Plan

1 City of Yellowknife, Council's Goals and Objectives 2019 - 2022

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Goals Objectives Driving strategic land 11. Diversify development options development and growth 12. Promote development across the City opportunities

The vision, goals and objectives established by Council provide some guidance with respect to economic development but are written in such a way so as not to limit the range of goals and strategies that can be considered. This strategy itself fits into objective #3 of the first goal: Growing and Diversifying Our Economy. However, as outlined in the following sections, implementation of the economic development strategy will also contribute to most of the other goals and objectives.

3.2. Key Principles Underlying the Economic Development Strategy

Implicit in the proposed economic development strategy are several key principles which are important to formally recognize. These include:

• The City of Yellowknife will act with a sense of urgency in promoting economic development. The City recognizes the widespread concern documented in this strategy regarding the future economic outlook for Yellowknife. Although the full impact of declining diamond mine production will not be felt within the next five-year period, concerted action will be needed during this time period to enable Yellowknife to achieve its vision of remaining a prosperous community going forward. The risks associated with not acting aggressively are significant.

• Recognizing that many of the levers for promoting economic development lie beyond its direct control, the City will place a high priority on working with key partners. These partners include Indigenous governments, leaders and development corporations, the GNWT, the federal government, industry, associations and others. Strong leadership from the City is required to develop effective partnerships and relationships, contribute loudly to the voices promoting investment and further development, and promote the interests of Yellowknife. The City will actively support the implementation of agreed-upon development strategies that have been developed for key sectors.

There are many opportunities for the City of Yellowknife to work actively with other parties on areas of common interest. For example, the interests of Yellowknife align closely with many of the 22 priorities that have been established by the GNWT (e.g. settling and implementing treaty, land, resources, and self-government agreements; creating a Polytechnic University; increasing access to affordable homes; making strategic infrastructure investments such as the Slave Province Geological Corridor and the Taltson Hydro Project that connect communities, expanding the economy or reducing the cost of living; reducing the cost of power and increasing the use of alternative and renewable energy; increasing resource exploration and development as well as supporting growth in non- extractive sectors; ensuring that government procurement and contracting maximizes benefits to residents and businesses; adopting a benefit-retention approach to economic development; and increasing food security through locally produced, harvested, and affordable food). There are also opportunities to build on existing relationships and MOUs in order to further coordinate and jointly pursue economic development activities with Indigenous governments and development corporations, including Yellowknives Dene First

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Nations (YKDFN) which shares boundaries with the City, as well as others which share common interests.

• The economic strategy needs to be focused, with a clear set of priorities regarding the actions to be implemented. The strategy should not be a shopping list of potential actions that could be taken. Rather, it is important that we prioritize the key actions most needed to promote development of available opportunities and address the constraints which have been identified.

• The economic development strategy will be actively supported by the City Council, the senior management of the City of Yellowknife and the Mayor’s Task Force.

• The strategy will be dynamic with the results monitored on an ongoing basis.

3.3. Objectives, Goals and Strategies

Short-term Versus Longer-term Objectives

The short-term focus on the strategy is on mitigating the impact of the anticipated mine closures. The economic strength of Yellowknife will be significantly impacted by upcoming closures of diamond mines. The strategy recognizes the historical and ongoing importance of the resource sectors, particularly the mineral industry, to the prosperity of Yellowknife. It is recognized that attracting further investment related to the resource sector will be an important contributor to offsetting some of the anticipated job losses.

The longer-term vision is to create a more diversified and integrated economy in Yellowknife. The options of Yellowknife promoting the mineral sector and promoting economic diversification are sometimes positioned as an either/or. They are not mutually exclusive. The City needs to pursue and support both options. The strategy recognizes the potential to significantly grow the tourism and cultural sectors, establish Yellowknife as centre for post-secondary education and research, further develop the city as a supply hub for a wide range of products and services, and build a stronger downtown core.

The strategy also recognizes the importance of an integrated approach, where the further development of one sector contributes to the development of others. For example, establishing a strong post-secondary institution can help to revitalize the downtown area which, in turn, can leverage further expenditures by tourists. Developments in the mineral sector can support and be supported by post-secondary education programs and contribute to further development of the construction industry, the position of Yellowknife as a supply hub, and business tourism.

Economic Development Goals

Five goals have been established for economic development. The first four are horizontal in nature in that the strategies associated with these goals are designed to promote development across a range of economic sectors and opportunities. The fifth goal is vertical in nature in that it incorporates a series of strategies relevant to specific sectors. These goals are as follows:

1. Yellowknife is a strong leader and advocate for economic development

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2. Yellowknife features a positive climate for business 3. Yellowknife is recognized as a great place to live, visit, and invest 4. The rate of business establishment and development is accelerating 5. Our key economic sectors are growing and further integrating

Economic Development Strategies

The goals and strategies are summarized in the table on the following page and detailed in paragraphs below.

1. Yellowknife is a strong leader and advocate for economic development.

Towards that end, Yellowknife should:

• Implement an effective governance structure for refining and implementing the strategy on an ongoing basis and tracking and reporting on the results. Key actions will include:

▪ City Council reviews, endorses and supports the economic development strategy.

▪ The Mayor’s Task Force remains actively involved, meeting approximately three times per year to provide advice on economic development strategy implementation, advise and contribute to strategy updates and the development of annual plans, and serve as a body that helps to coordinate and solicit support for implementation from key elements across the participating organizations. The terms of reference will be updated to reflect the renewed role of the task force.

▪ The Manager of Economic Development and Strategy prepares an annual implementation plan which is presented to the City Council and the Mayor’s Task Force. Municipal funding is made available, as warranted, to support implementation of key elements of the strategy.

▪ The performance measurement strategy is implemented on an annual basis, with the results reported back to City Council, the Task Force, and the general public.

• Work with key partners in strongly advocating for major developments and, where possible, supporting implementation of associated development strategies. The City of Yellowknife will benefit significantly from the development of major infrastructure projects such as all-season roads across the region; the further development of hydropower and construction of power transmission lines that will provide for lower energy costs and increase access to renewable energy; the development of the Slave Geological Province Corridor which will provide road access, hydro transmission lines and communications infrastructure into areas of significant mineral potential; and upgrades to the Yellowknife Airport. The City will also benefit from settling and implementing treaty, land, resources, and self-government agreements.

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Overview of the Draft Goals and Strategy – City of Yellowknife Economic Development Strategy 2020-24

Goal Strategies Implement an effective governance structure Advocate for developments and initiatives #1. Yellowknife is for economic development that strengthen the Yellowknife economy a strong leader ▪ and advocate for ▪ Council endorses & supports the Economic Development Strategy The City works with key partners in supporting ▪ The Mayor’s Task Force remains active in guiding & supporting implementation implementation of major initiatives, strategies economic ▪ The Manager of Economic Development and Strategy prepares annual and developments development implementation plans for economic development ▪ The City actively supports the interests of ▪ Results are reported back to the Council, Task Force and public Yellowknife in various forums Implement a business retention Improve the regulatory environment impacting the Increase access to and expansion program (BRE) development of Yellowknife businesses lands for development ▪ Work with GNWT, the federal government and industry to ▪ Conduct biennial business climate ▪ Lobby the GNWT to #2. Yellowknife streamline processes, reduce overlap, better delegate surveys transfer control of lands features a authority, and make greater use of online tools and forms ▪ Implement BRE activities in for residential, positive climate ▪ Apply an economic lens to any proposed bylaws, policies or response to issues identified commercial and for business plans ▪ Develop and implement a retention industrial development to ▪ Establish clear service standards and timelines/report on strategy to mitigate the impact of the City results upcoming mine closures ▪ Advocate for the ▪ Establish a shared pathfinding function with the GNWT settlement of land claims ▪ Strategically apply business incentives and policies Develop marketing and Recruit tourists, investors, workers #3. Yellowknife is communications strategy and prospective residents recognized as a ▪ Develop an integrated, optimized website and marketing collateral great place to ▪ Incorporate elements of common branding and ▪ Attend major events and host inbound visits live, visit, and positioning into the strategy ▪ Implement direct marketing, social media and earned media campaigns ▪ Define key targets, branding and positioning strategy ▪ Recruit champions and ambassadors invest ▪ Pursue opportunities to leverage campaigns, ▪ Follow up with prospects and leads promotional activities and tools ▪ Undertake co-marketing ▪ Work with government and industry to enhance immigration programs Work to establish an Support business Support the development of #4. The rate of incubator/accelerator development initiatives local suppliers business ▪ Examine feasibility of establishing an incubator, ▪ Encourage development of a regional ▪ Work to strengthen northern establishment accelerator, makerspace or innovation centre angel investor network and/or local preference policies and development ▪ Work with the GNWT, federal government and investment fund. ▪ Facilitate connections between is accelerating other partners to establish incubator/ ▪ Support the development of social purchasers and local suppliers accelerator enterprises

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Overview of the Draft Goals and Strategy (continued)

Goal Strategies Mineral Industry Tourism Sector Polytechnic/University

▪ Pass bylaws required to implement hotel ▪ Recognize the importance of the industry to levy and regulate short-term rentals the economy of the GNWT and Yellowknife ▪ Implement a governance structure for the ▪ Feature the mineral industry as a key sector DMO and visitor services centre ▪ Continue to champion in investment attraction activities ▪ Attract investment and promote development of a ▪ Work to capture for Yellowknife more of development of additional tourism university/polytechnic in the benefits associated with the mineral products, attractions and capacity Yellowknife industry in the NWT and Nunavut ▪ Prepare an Arts & Culture Master Plan and ▪ Advocate for improvements in the ▪ Support the development of a #5. Our key update the Tourism Strategy campus in the downtown area investment climate for mineral exploration economic sectors ▪ Implement wayfinding strategy and signage and development in the NWT are growing and improvements becoming further integrated Downtown Revitalization Cold Weather Testing Agriculture and Food

▪ Work with partners to help address the ▪ Amend or create new bylaws to social issues facilitate urban agriculture, as part ▪ Work to attract key tenants to the region ▪ Support efforts of the working group to of the broader review of existing and increasing number of residents living in further develop Yellowknife as a cold- regulatory regimes the area weather testing destination ▪ Work with local agriculture and ▪ Support initiatives that draw more ▪ Support further development of the fishing groups to promote residents into the area Yellowknife airport stewardship, training, and the ▪ Encourage establishment of a local Business development of local markets and Improvement Area commercial producers

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• Actively support the interests of the City of Yellowknife by participating in key committees, boards, and other key forums. In addition to the Mayor’s Task Force, the City currently participates in a series of committees and boards such as the University Post-Secondary Advisory Committee, the Community Energy Planning Committee, the Community Advisory Board on Homelessness, and the Heritage Committee. It was also suggested that the City should be active in supporting development projects (e.g. through filing letters of support) being reviewed by the Mackenzie Valley Land and Water Board and the Mackenzie Valley Environmental Impact Review Board

2. Yellowknife features a positive climate for business.

Towards that end, Yellowknife should:

• Implement a business retention and expansion (BRE) program. An effective BRE program may have reduced the likelihood that some businesses would have moved out of Yellowknife. In recent years, several regional/corporate head offices have left Yellowknife (e.g. offices associated with the diamond mines and Northwestel). Under a BRE program, the priority is to identify businesses at risk of leaving and work with them to address key issues and better enable them to stay in the community. Given upcoming mine closures, it will be very important for the City to work with industry groups and the GNWT in identifying potentially at-risk businesses and skilled workers and work to develop strategies to mitigate the situation. An important component of the BRE will be a biennial business climate survey which will capture feedback from a cross-section of businesses by sector and size of operation. In implementing the strategy, the City will be mindful of the GNWT ‘s territorial-wide BRE program already in place.

• Work with the GNWT and the business community, including developers, to review and revise, as needed, the municipal and territorial regulatory, licensing and permitting regimes. Many of those surveyed and interviewed identified issues associated with regulatory, licensing and permitting at both the municipal and territorial levels, citing numerous examples where issues delayed investments, increased costs, and resulted in businesses, investments or developments not going ahead.

Some particular areas of concern which have been identified as constraining investment include building permit processes, business licensing, fire regulations and liquor laws as well as regulations and processes affecting resource development (e.g. mineral exploration and mine development) and tourism operator licenses. Several years ago, implementation of BizPal by the GNWT failed due to the large number of permits involved. This suggests an urgency to streamline processes.

Task Force members have also noted the importance of working to improve the usefulness of immigration programs for local employers, particularly strengthening the NWT Nominee Program with respect to the requirement for work permits prior to approval.

• Establish clear service standards and timelines with respect to permit applications and development processes, track performance against those standards, and report on

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the results. The need to establish clear standards has also been identified in Council’s Goals and Objectives 2019-22.

• Establish a pathfinding function within the City of Yellowknife that will assist existing and proposed new businesses in navigating the complex regulatory environment including regulations at the municipal, territorial and national levels that impact on proposed development and investments. Some municipalities have effectively addressed regulatory and licensing issues through establishing a business hub within the municipal office, a welcoming and collaborative first point of contact for business start-ups, relocations, expansions, investors, property owners, leasing agents, and others. The pathfinding function, which could be delivered in association with the GNWT, can provide a roadmap and guidance not only at the municipal level but at the territorial level as well. The GNWT has recently established a pathfinding function targeted primarily at the mineral industry.

• Conduct a review of any proposed new bylaws, policies or plans by applying an economic lens to assess how the changes are likely to impact on the local business climate. New bylaws, policies and plans often have unexpected or unintended consequences which serve to constrain economic development. By involving the economic development group in a review of planned changes, many of these unintended consequences can be addressed prior to implementation.

• Make greater and more strategic use of business incentives and policies to promote the development or redevelopment of properties, particularly those in the downtown area. Examples of available incentives including tax reductions or subsidies, density bonuses, permissive zoning for parking, access to support for workforce training, networking, and infrastructure development. The City of Yellowknife has made some use of various incentives including a Downtown Patio Incentive (which provides up to $10,000 per establishment to downtown businesses for their approved sidewalk patio's first-year construction and installation), a Public Washroom Incentive (which provided signage and annual funding of $500 for opening washrooms for public use during business hours), and the Development Incentive Bylaw which provides development and redevelopment incentives to promote the smart growth development and revitalization of Yellowknife’s built-up areas through residential intensification, industrial relocation, brownfield redevelopment, LEED developments, heritage preservation, and integrated parking structures.

• Work to increase access to land for residential, commercial and industrial development. There are 13,660 hectares located within the municipal boundaries.2 After adjusting for lands covered by water, properties already developed, lands not available to the City for development due to existing land rights (e.g. the Akaitcho Interim Land Withdrawal; the airport; federal government, GNWT, and privately owned lands; contaminated former mine sites; and parklands), there are only 118 hectares of either private or City-tenured vacant land within the City. Many of the municipal ‘vacant’ lands have restrictions upon their use or are already valued by the public for recreational use.

2 Draft Community Plan By-law No. 5007. By-law No. 5007 received Second Reading at Special Council Meeting on December 19, 2019.

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In order to increase access to developable land, the City will need to work with the GNWT to facilitate the transfer of untenured Commissioner’s Land (totalling 4,295 hectares) which is currently under the administrative control of the territorial government. Settlement of the Akaitcho Dene First Nations’ (ADFN) land claim will also help to increase access to land that can be used for development. The ADFN is hoping for an agreement-in-principle by June 2020.

3. Yellowknife is recognized as a great place to visit, invest, work and live.

The focus is on developing and implementing a coordinated and integrated marketing program targeted at attracting tourists, businesses, investment, skilled and unskilled workers and residents to the City of Yellowknife.

• Develop a marketing and communications strategy targeted at tourists, investors, workers and prospective residents. Rather than developing distinct tourist, investment, and worker attraction strategies, it makes more sense for Yellowknife to develop an integrated strategy that includes separate components but incorporates some elements of common branding and positioning (perhaps building off the Extraordinary Yellowknife brand) and takes advantage of opportunities to leverage campaigns, coordinate promotional activities and share tools. The strategy should define the targets including key economic sectors (e.g. the mineral industry and tourism), the branding and positioning strategy, and the planned marketing tools and collateral.

• Develop an integrated, optimized website and supporting marketing collateral that promotes Yellowknife as a great place to visit, invest, work and live (and eventually to study as the polytechnic develops). The website layout will change somewhat depending on the focus (visit, invest, work, or live). The investment section, for example, should include detailed statistical and narrative profiles of Yellowknife, a profile of business, investment and development opportunities, and an investor’s toolkit. Local businesses can be encouraged to list their businesses when they are looking to sell or attract investment. The work section can include information on employers, job postings, and employment resources.

• Implement the strategy. Subject to the recommendations of the marketing strategy, it is anticipated that key elements of the strategy will include:

▪ Participating in events. Examples of potential events where Yellowknife should have a presence include sector-specific events such as Roundup and the Geoscience Forum, trade shows, and job fairs. ▪ Direct marketing campaigns targeted at lists of prospects which can be generated through referrals, online research, and events. Investment targets can include businesses, developers, consultants and site selection professionals. ▪ Social media and earned media strategies. ▪ Media and social media advertising. ▪ Following up with prospects and leads, which are tracked using a CRM database. ▪ Hosting in-bound visits to Yellowknife. ▪ Recruiting champions and ambassadors who will help to promote Yellowknife. ▪ Undertaking co-marketing activities in association with the GNWT, industry, associations and others.

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4. The rate of business establishment and development is accelerating

Various resources and programs exist in the NWT to assist in the establishment and growth of small- and medium-sized businesses. The Akaitcho Business Development Corporation serves as the local Community Futures office, providing loans to businesses in Yellowknife, N'dilo, and Dettah. The BDIC operates the Canada Business NWT (a business service centre) and provides loans and contributions. The SEED programs offered by the GNWT provide funding in six categories, including funding for entrepreneurs, micro-businesses, and strategic investments.

The businesses surveyed and key informants who were interviewed identified the need to augment these resources. Towards that end, the City of Yellowknife should:

• Examine the feasibility of establishing a business accelerator and/or incubator in Yellowknife. Similar facilities have proven effective in communities across Canada in facilitating early-stage development (incubation) of new businesses and accelerating the growth of existing businesses. The incubator component would offer space in a co- working environment, access to some shared services, mentoring support (e.g. assistance in developing a business plan, strategic plan, or documents for raising financing) and access to other resources and networks. The facility could be used by small businesses or single entrepreneurs as well as by other small operations who may benefit from shared space and access to other resources (e.g. junior exploration companies).

Incubators are sometimes combined with makerspaces, which provide access to tools and technology that can be used to develop product prototypes or personal projects and share tools and expertise. Equipment may vary from 3D printers, laser cutters, and CNC machines to sewing and woodworking machines. A makerspace known as YuKonstruct was established in Whitehorse in 2014. In 2018, funding was provided by CanNor ($1.5 million) and the Government of Yukon ($1.9 million) to create an innovation hub in Whitehorse which merged the YuKonstruct Makerspace with an incubator to provide a shared workspace and collaborative environment for Yukon's entrepreneurs and innovators.

A business accelerator operates as a more structured program with a finite timeline (often about two months for seed programs and up to six months for second-stage programs that focus on more mature start-ups), during which participating companies commonly work directly with a group of mentors who assist them in planning and building their business. Many of the programs include a seed capital component; participating companies develop a pitch deck which is presented to potential investors who may provide some early-stage equity capital. The mentors commonly include a broad section of mentors including those with start-up and relevant sector experience as well as angel investors and venture capitalists.

• Encourage the development of a regional angel investor network and/or local investment fund. Limited access to equity capital has been identified as a constraint associated for small and medium-sized businesses in the region. The City could work with the business community, the GNWT and the federal government to encourage the development of a local angel investor network and/or a community investment fund. Various models are available. For example, federal government funding has been used to

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incentivize the further development of angel investor networks in southern Ontario and help to improve their operations and results. Similarly, government funding has been used to mobilize the formation of rural investment capital funds in various provinces in Canada.

• Supporting the development of social enterprises. Social enterprises are businesses that pursue a social mission through an entrepreneurial approach. They have proven very successful in addressing various social issues, such as those affecting the downtown area, through creating employment and delivering needed services. They may operate under a variety of legal structures including as a non-profit, cooperative, incorporated business, proprietorship, partnership or a specialized legal structure such as a Community Contribution Company or a Benefit Company. Over the past few years, the federal government and numerous municipal governments across Canada have introduced social procurement frameworks, policies and programs designed to support social entrepreneurship by developing social enterprise policies, providing grants and contributions, offering business development support services, promoting the use of community benefit agreements, and incorporating social clauses and associated requirements into procurement and development permits.

• Support local supplier development programs and policies as a means to increase the market share held by Yellowknife businesses related to the purchase of goods and services by the City of Yellowknife, the GNWT, the Government of Canada (e.g. related to the remediation of Giant Mine) and major businesses, including mines in the NWT and western Nunavut. Potential actions include:

▪ Facilitating greater interaction between purchasers and local suppliers (e.g. through trade shows including reverse trade shows). ▪ Developing an online registry of products and services. ▪ Conducting a retail leakage and/or an import substitution study. ▪ Working to strengthen northern supplier preference policies. The Business Incentive Policy (BIP) aims to give preference on territorial government procurement (i.e. the over $260 million that the GNWT spends annually on products and services to businesses that are owned and operated within the NWT). The City has a Local Procurement Policy that sets a target of 85% of the City’s purchasing to be made locally.

5. Our key economic sectors are growing and integrating

Appendix IV provides an overview of the key sectors and opportunities for development which were identified in preparing the economic development strategy. This section outlines specific strategies for promoting their further development.

Mineral Industry

Diamond mining is the largest single contributor to the NWT economy, accounting for 33% of GDP in 2018. The mineral industry also generates significant economic activity related to exploration, remediation, purchase of products and services, construction, and employee spending. As such, closing of the diamond mines will have a significant impact on the local economy.

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Fortunately, the NWT contains a vast array of mineral deposits and mineral occurrences and several potential new mines are at various stages of development. However, past research combined with the results of the key informant interviews and business survey have highlighted a variety of constraints to development facing the sector. To help address these issues and promote further development of the mineral industry, the City of Yellowknife should work with the mineral industry and other key stakeholders to:

• Develop a mineral strategy for the City of Yellowknife, that will identify actions the City could undertake to promote further mining industry development and mitigate the negative economic and socio-economic impacts of upcoming mine closures.

• Recognize the importance of the sector to the economy of the GNWT and Yellowknife. The City of Yellowknife can play an important role in supporting the sector through endorsing the economic development strategy, issuing a letter of support for the mineral industry as requested by Chamber of Mines, and communicating with various stakeholders.

• Feature the mineral industry as a key sector in its investment attraction activities.

• Capture for Yellowknife more of the benefits associated with the mineral industry in the NWT. Opportunities have been identified to increase the participation of Yellowknife suppliers in remediation activities, strengthen the position of Yellowknife as a supplier of products and services throughout the NWT and western Nunavut, and increase the percentage of mineworkers who reside in Yellowknife.

• Advocate for improvements in the investment climate for mineral exploration and development in the NWT. The industry has highlighted the need for government, particularly the GNWT as well as the Government of Canada, to streamline regulatory processes, further incentivize exploration and development activities, and develop needed renewable energy, transportation, and communication infrastructure.

Tourism

Although small relative to the mineral industry, the tourism sector has shown consistent growth in recent years. The latest statistics, released in November 2019, report that over 120,000 visitors travelled to the NWT in 2018-20193, spending just over $210 million. Leisure visitation spending (especially Aurora viewing) has overtaken business travel as the primary source of revenue. The sector remains highly seasonal, which is reflected in the wide variation in average monthly hotel occupancy rates.

To promote further development of the tourism sector, the City of Yellowknife should work with the tourism partners and other key stakeholders to:

• Develop and pass bylaws required to implement the hotel levy and regulate short- term rentals. In 2018, the GNWT passed Bill 18 allowing for the collection of a short-

3 Tourism Visitation and Expenditures (2018-2019), https://www.iti.gov.nt.ca/en/tourism-research.

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term accommodation levy of up to 4% on tourist accommodations in order to fund a Destination Marketing Organization (DMO). The City of Yellowknife is in the process of working with the industry to develop a bylaw to collect the accommodation levy. In addition, the City is also working on a bylaw that will clarify the regulation of short-term rental properties and their responsibilities with respect to collecting the levy.

• Implement a governance structure for the DMO and visitor services centre that will be effective in attracting, serving and maximizing the economic benefits of tourists. The Northern Frontier Visitor Center, which operated as a non-profit, closed in October 2017 and the City subsequently established a temporary visitor centre operating from City Hall. At this time, there is uncertainty as to how the DMO will be structured (e.g. will be function be contracted out or managed in-house), where the new visitor centre will be located, and how the visitor centre will be funded. The previous centre received funding from the GNWT and also generated revenues from the sale of various products (e.g. arts and crafts).

• Encourage the development of additional tourism products as a means to increase visitation during the shoulder and off-peak seasons as well as increased activity levels and expenditures during the peak periods. Potential opportunities include:

▪ Development of tourism products featuring Indigenous culture. The Yellowknives Dene First Nation is currently conducting a feasibility study related to development of an Indigenous cultural centre that “creates a story for Yellowknife” and speaks to the history of the city as the home of a unique Indigenous culture. The NWT Tourism 2020 Strategy incorporates a focus on Aboriginal culture and on adopting the recommendations of the NWT’s Aboriginal Tourism Champions Advisory Council (ATCAC).

▪ Development of additional accommodation capacity. Suggestions have included development of additional hotel capacity and expansion of camping and RV facilities.

▪ Expanding access to tourism products based on Aurora viewing as well as winter outdoor adventure activities such as dogsledding, snowmobiling, snowshoeing, ice fishing, ice road tours, and cross-country skiing. Other outdoor adventure activities include wildlife viewing, hiking, cycling, kite skiing, boating, canoeing, kayaking, paddle boarding, fishing and hunting.

▪ The development of geotourism products, with a particular focus on the mining industry. A mine tour has been developed at the Diavik mine. There is also interest in developing a mining museum which could be situated on the Giant Mine site. Similar attractions (e.g. MacBride Copperbelt Mining Museum in Whitehorse) have been successful in attracting visitors during the summer months. The Giant Mine presents an opportunity to focus on the history of gold and diamond mining in the region, the reclamation process, and advances in mining practices over time.

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▪ Use destination events including conferences, cultural events, sports tourism, culinary tourism and healthcare services (particularly for residents from other regions of the north) to attract additional visitors to the region.

▪ Promoting the City to RV travellers and creating a supportive environment for RV rentals, stations and facilities to serve this tourist group.

• Develop a City of Yellowknife Arts & Culture Master Plan to guide long-term decision-making and investments in arts and culture and update the City’s Tourism Strategy (which was last prepared in 2014). In updating the tourism strategy, the City will be mindful of tourism opportunities stemming from the GNWT’s five-year tourism strategy.

• Implement the wayfinding strategy and associated improvements to signage, as outlined in the City of Yellowknife Wayfinding Strategy, September 2019.

• Feature the tourism industry as a key sector in its investment attraction activities.

• Explore the potential to introduce border services at the Yellowknife airport which would allow for direct international flights.

Post-secondary Institution/Polytechnic

A destination polytechnic university has been proposed for the NWT that is capable of drawing students from elsewhere in Canada and internationally, not just an institution designed to serve the local population. Establishment of a university in Yellowknife would:

▪ Be a direct economic driver, attracting international students and students from other parts of Canada. ▪ Enable the development of courses and research targeted specifically at subjects relevant to the local environment (e.g. contributing to the establishment of Yellowknife as a centre for northern or arctic research as well as a Mining Technical Centre of Excellence). ▪ Increase access to skilled workers, both by helping to retain local youth who may attend university in the south and not return as well as attracting students from outside the region who will stay.

There are numerous examples of northern universities in Scandinavia including the University of Tromso, Barents Institute, Finnmark University College, Sami University College, Umea University and Harstad University College. The Yukon Legislature has just passed a bill to make Yukon College a university.

Council established the University/Post-Secondary Advisory Committee (UPAC) in May 2018. The purpose of UPAC is to provide advice and guidance to the City in its efforts to establish a university/post-secondary institution in Yellowknife. To promote the development of a university, the City of Yellowknife should:

• Continue to champion the development of a university/polytechnic in Yellowknife, working closely with key partners including the GNWT, UPAC, the Academic Advisory Council, other universities and research organizations and Indigenous governments.

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• Support the development of the campus in the downtown area. In its Community Plan, the City has identified the downtown area as the preferred location for the university. A downtown location would be an important economic driver for revitalizing the downtown core.

Downtown Revitalization

For the purposes of downtown revitalization, downtown has been defined as the area within 47th Street to 54th Street and 49th Avenue to 52nd Avenue. Homelessness, poverty, safety, security, cleanliness, addictions and mental health issues in the downtown area have been identified as long-standing concerns of both residents and businesses. Solving these broad social issues in a meaningful way will require cooperation between various levels of government and concerted efforts. Aside from the significant human cost, these issues have a strong negative impact on economic development, discouraging use of the core area by residents and business investment and increasing retail vacancy rates which in turn further discourages foot traffic.

Downtown revitalization has been firmly established as a key priority for the City Council. The City of Yellowknife has established a Vision for Downtown Revitalization and commissioned the Retail Revitalization Strategy for Downtown Yellowknife (September 2019). Every community engagement exercise held in the past few years has shown that Yellowknife residents are extremely concerned about homelessness and poverty in the downtown core. To promote revitalization of the downtown area, the City of Yellowknife should:

• Continue to work with other levels of government, non-profits, social enterprises, the private sector, community policing initiatives and others to help address the social issues, building on its current activities in areas such as the Homelessness Employment Program, the Street Outreach Program and the Arctic Indigenous Wellness Camp.

• Work to attract key tenants to the region and increase the number of people residing in the area. Currently, there are about 2,700 daytime workers and 1,500 residents located in the area. Towards that end, the City can promote establishment of high-density residential developments, a university, a business incubator and accelerator, a visitors’ centre and popups in the neighbourhood as well as development of the 50/50 vacant parcel of land which is zoned for higher mixed-use density.

• Work to draw more residents into the area by promoting the development of events, concerts, food markets, patios and other places, improving public transit (providing more ready access to the downtown area), working to change resident perceptions of the area, and improving the attractiveness of the area (incentivizing leasehold improvements, streetscaping, improved lighting, cleaning, and improved wayfinding).

• Encourage establishment of a local business improvement area (BIA), which would also help to coordinate and implement revitalization activities. The Revitalization Strategy noted that the City of Yellowknife devotes some municipal staff time and that several private sector organizations organize some downtown activities and events. However, there is no single entity that is officially tasked with guiding or assisting with business or property development or with marketing downtown Yellowknife.

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Cold Weather Testing

Yellowknife is well-positioned to conduct cold-weather testing of technology. Various companies including Bell Helicopters, Porsche Sikorsky, Airbus/Bombardier, and General Motors have tested equipment in Yellowknife. A working group consisting of representatives from the GNWT, Yellowknife Airport, the City of Yellowknife, and NWT Tourism has come together to market the area as a cold-weather testing destination. Other communities in Canada, the US and Europe have been very successful in developing markets for cold-weather testing.

The City of Yellowknife should promote further development of cold weather testing work by:

• Supporting the efforts of the working group to further develop Yellowknife as a cold- weather testing destination. Key actions include featuring the cold weather testing capabilities in its marketing activities and on the City’s website, advocating for further investments in equipment and infrastructure, and continuing its efforts to establish a university and expand visitor capacity in Yellowknife.

• Support further development of the Yellowknife airport. The airport is developing a 20- year Master Plan (2020-2040) which will outline various strategic initiatives that it may pursue. Potential developments include upgrades to the infrastructure (including extending the runways as well as water and sewer), establishing YZF as an international airport (i.e. with border services), and enhancing the ability of the airport to serve as supply depot/logistics hub for communities and mines in the north.

Agriculture and Food

The high cost of food and a desire to rely on sustainable local food resources while maintaining regional traditions and culture has led to revived interest in the agriculture sector and a greater push on expanding the fishing industry. Historically, the NWT had developed a relatively thriving agricultural industry. There were experimental farms, dairy farms, an abattoir, and large market gardens in most communities. However, this changed with increased accessibility with roads, planes, and cheap fuel. Now, rising food prices and the recognition of the need to reduce dependence on a cyclical resource economy are leading to a new renewed interest in sustainable local agriculture.4

In 2019, the City published GROW, an abbreviated name for the Yellowknife Food and Agriculture Strategy.5 Building on the vision and principles in the Yellowknife Food Charter, it is a long-range plan for increasing community and commercial opportunities in Yellowknife’s urban food and agriculture system. In 2017, the GNWT published a Strategy for Revitalizing the Great Slave Lake Commercial Fishery. The strategy outlines 25 recommended actions grouped under four overarching strategic goals: increasing lake production; increasing processing in the NWT; growing the NWT market; and accessing export markets.

Actions that the City of Yellowknife can take to promote further development include:

4 V2.0-GROW-Opportunities-Analysis-Updated-April-26-2019. 5 Yellowknife Food and Agriculture Strategy (GROW), V3.0 Spring 2019.

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• Amending or creating new bylaws to facilitate urban agriculture, as part of the broader review of existing regulatory regimes.

• Working with local agriculture and fishing groups to promote stewardship, training, and the development of local markets and commercial producers.

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4. Priority Actions and Performance Measurement

This chapter outlines the priorities for action under the Economic Development Strategy and defines the measures that can be used to assess the progress made.

4.1. Priority Actions – Plans for Implementation

This section outlines the specific steps that will be taken by the City of Yellowknife in implementing the strategy. More specifically, it outlines actions that will be undertaken to establish the structure overseeing implementation, the key initiatives planned for 2020, activities that will be undertaken on an ongoing basis, and potential activities which have been proposed for subsequent years.

Oversight of the Economic Development Strategy

Implementation of the strategy will be overseen by the Mayor’s Task Force and City Council. Towards that end, in 2020, the City will:

1. Develop a renewed Terms of Reference for the Mayor’s Task Force.

The terms of reference will define the roles and responsibilities, membership, and meeting schedule for the Task Force.

2. Prepare an implementation plan which outlines the activities that will be undertaken in 2020.

The annual implementation plan will be developed by the Manager of Economic Development and Strategy and presented for comment to the Mayor’s Task Force and to the City Council. The same format will be used for future plans. The plan will outline specific steps, allocate responsibilities and identify partner organizations. It will also detail the annual budget.

3. Obtain, from the City Council, endorsement of the 2020-24 Economic Development Strategy, the renewed Terms of Reference for the Mayor’s Task Force, and the implementation plan for 2020.

Key Initiatives for 2020-21 (One Time or Limited Time Initiatives)

Key initiatives to be undertaken by the City of Yellowknife in 2020 include:

4. Implement a governance and operating structure for the DMO and visitor services centre.

The focus is on developing a structure that will be cost-effective in attracting, serving and maximizing the economic benefits of tourists. At this point, there is uncertainty regarding the amount of funding that will be available for destination marketing, how the DMO will be structured (e.g. will be function be contracted out or managed in-house), where the new visitor centre will be located, and how the visitor centre will be funded. The DMO will then

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take responsibility for implementing tourist attraction strategies. Planning for the structure will build on the results of the Visitor Centre Strategy prepared in 2018/19.

5. Establish a Task Force to undertake a review of the regulatory environment affecting economic development and investment in the City of Yellowknife.

The review will bring together representatives of the City, the GNWT, sector representatives, developers and others to review and recommend revisions, as needed, to the municipal and territorial regulatory, licensing and permitting regimes. The research has identified issues associated with building permit processes, business licensing, fire regulations, liquor laws, regulations and processes affecting resource development (e.g. mineral exploration and mine development), urban agriculture and tourism operations as well as the need to pass bylaws required to implement the hotel levy and regulate short-term rentals. The objectives of the review will be to finds ways to:

▪ Streamline the processes; ▪ Reduce overlap, redundancies and complexity; ▪ Delegate greater authority to the frontline to accelerate the process; ▪ Achieve greater consistency in the application of regulations; ▪ Make greater use of online tools and forms, including BizPal; ▪ Allow for greater flexibility, where warranted, in order to better facilitate development and redevelopment.

The review will also examine how a City and GNWT pathfinding function could best be structured to assist existing and proposed new businesses in navigating the complex regulatory environment. It will also recommend clear service standards and timelines for the City with respect to permit applications and development processes.

6. Work with the GNWT to facilitate the transfer of untenured Commissioner’s Land.

Over 4,000 hectares of land are currently under the administrative control of the territorial government. Transfer of this land will significantly increase access to lands within the City limits for residential, commercial and industrial development.

7. Prepare a mineral development strategy.

Developed in association with the industry and others, the strategy will outline actions the City can take to improve the investment climate, attract investment and promote further development, capture for Yellowknife more of the benefits and business activity associated with the mineral industry in the NWT, promote related developments in areas such as tourism and education, and work to mitigate the negative impacts of upcoming mine closures.

8. Commission an Arts & Culture Master Plan and update the existing Tourism Strategy.

The development of a City of Yellowknife Arts & Culture Master Plan to guide long-term decision-making and investments in arts and culture has already been identified as an objective of the City Council in its 2019-22 Goals and Objectives. There is also a need to update the City’s Tourism Strategy (which was last prepared in 2014).

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9. Develop an integrated tourist, investor, worker and resident attraction strategy.

The strategy will include separate components but incorporate some elements of common branding and positioning (perhaps building off the Extraordinary Yellowknife brand) and take advantage of opportunities to leverage campaigns, coordinate promotional activities and share tools. The strategy will define the targets including key economic sectors (e.g. the mineral industry and tourism), the branding and positioning strategy, and the planned marketing tools and collateral. Implementation of the tourist strategy will be led by the DMO while the City will take a leading role, in association with its partners, in implementing investor, worker and resident attraction.

10. Work with partners in reviewing the feasibility of establishing a business accelerator and/or incubator in Yellowknife.

Similar facilities have proven effective in communities across Canada in facilitating early- stage development (incubation) of new businesses and accelerating the growth of existing businesses. The purpose of the review is to determine the design of a facility which would be most appropriate for the City of Yellowknife, develop capital and operation cost projections, develop the business case which can be used to secure funding for its development and operation, and outline the steps that will be taken by the various partners to develop the facility including the role that should be played by the City.

11. Implement the wayfinding strategy and signage improvements as outlined in the City of Yellowknife Wayfinding Strategy, September 2019.

12. Stage a forum to explore development of a regional angel investor network or investment fund that could increase access to capital for local businesses.

Access to equity capital has been identified as a constraint for small and medium-sized businesses in the region. The Forum would bring together investors, the local business community, the GNWT and the federal government to discuss options to further develop the local angel investor network or community investment fund.

Activities Implemented on an Ongoing Basis

13. Implement a business retention and expansion (BRE) program.

Key elements will include:

▪ Monitoring economic conditions on an on-going, including developments related to upcoming mine closures, to identify and areas of risk. ▪ Conduct a first of a series of biennial surveys of business license holders to track changes in the business climate, identify organizations that may be at risk of closing down or relocating operations to another community, and determine the issues that are impacting on future location and investment decisions. The results will be analyzed by region, sector and size of operation and used to develop strategies to mitigate key issues.

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▪ Augment the results of the survey with an annual “business walks” initiative. Business walks are an inexpensive tool for collecting information on business climate, the opportunities for development and key issues. It involves recruiting a team of walkers who simply walk from business to business informally engaging in discussions with the business mangers or operators. ▪ Work with at-risk businesses in identifying actions that can be taken to mitigate the impact and work with key stakeholders to retain businesses and key employees in the community.

14. Implement the investment, worker and resident attraction strategies.

Some of the key components will include:

▪ Maintaining an integrated, optimized website and supporting marketing collateral that promotes Yellowknife as a great place to visit, invest, work and live (and eventually to study as well as the polytechnic develops). Investment, economic and employment data will be updated on a scheduled basis. ▪ Participating in events. Examples of potential events where Yellowknife should have a presence include sector-specific events such as Roundup and the Geoscience Forum, trade shows, and job fairs. ▪ Direct marketing campaigns targeted at lists of prospects which can be generated through referrals, on-line research, and events. ▪ Recruiting champions and ambassadors who will help to promote Yellowknife. ▪ Undertaking co-marketing activities in association with the GNWT, the federal government, industry, associations and others. ▪ Hosting inbound visits of potential investors and others to Yellowknife. ▪ Follow up with prospects and leads, providing information and referrals as needed. ▪ Making strategic use of business incentives and policies to promote investment. ▪ Provide a pathfinding service, possibly in association with the GNWT, to assist businesses and investors in navigating the regulatory environment. ▪ Facilitate connections between local suppliers and prospective buyers of products and services. ▪ Follow up on major projects planned for the NWT and western Nunavut to identify and act on potential opportunities for Yellowknife to capture more of the associated benefits.

15. Review any proposed new bylaws, policies or plans by applying an economic lens to assess how the changes are likely to impact on the local business climate.

New bylaws, policies and plans can have unexpected or unintended consequences which serve to negatively impact on local businesses, serve as a barrier to investment and constrain economic development. By involving the City’s economic development group in a review of

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any planned changes, these unintended consequences can be addressed prior to implementation.

16. Assist key champions, as requested and where possible, in their efforts to implement development strategies and key initiatives.

The City of Yellowknife will normally not lead these strategies or initiatives. However, it can work with the champions to help to align these strategies and initiatives with the interests of the City and provide support ranging from advocacy and resources that facilitates action. There are also opportunities to build on existing relationships and MOUs in order to further coordinate and jointly pursue economic development activities with Indigenous governments and development corporations, industry associations, various multi- stakeholder committees that have been established, and the GNWT (the interests of Yellowknife align closely with many of the 22 priorities that have been established by the GNWT). In this role, can contribute its voice and other resources, as warranted, in support of:

▪ Improvements in the investment climate in the NWT; ▪ Major investments in infrastructure including renewable energy, transportation, and communication; ▪ Major developments such as the development of a university/polytechnic in Yellowknife, further development of Yellowknife as a cold-weather testing destination, and further development of the Yellowknife airport; ▪ Establishment of a local Business Improvement Area for the downtown area; ▪ Improvements to northern preference policies; ▪ Agriculture and fishing programs that promote stewardship, training, and the development of local markets and commercial producers; ▪ Improvements in immigration programs, particularly the NWT Nominee Program; and ▪ Implementation of other agreed-upon development strategies that have been prepared for specific economic sectors. ▪ Development of a business incubator/accelerator

17. Report back annually to the City Council, Mayor’s Task Force and public on the progress made.

The performance measurement strategy is outlined in the next section.

A summary of the key action outlined above is provided in the table on the following pages.

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Overview of Priority Actions

Partners/ Estimated Priority Actions Champion Timing Priority Stakeholders Total Costs Oversight of the Economic Development Strategy Develop a renewed Terms of Reference for the Mayor’s Mayor & Task 1 Task Force -- 2020 High Task Force. Force Prepare an implementation plan which outlines the 2020/ 2 Economic Dev. Task Force -- High activities that will be undertaken in 2020. Annual Obtain, from the City Council, endorsement of the 2020-24 Economic Development Strategy, renewed Terms of 3 Economic Dev. City Council -- 2020 High Reference for the Mayor’s Task Force, and the implementation plan for 2020. Key Initiatives for 2020-21 (One Time Initiatives) Implement a governance and operating structure for the GNWT, 4 City -- 2020 High DMO and visitor services centre NWT Tourism Establish a Task Force to undertake a review of the City, GNWT, Sector 5 regulatory environment affecting economic development City Reps, Developers, $35,000 2020 Medium and investment in the City of Yellowknife Chamber and Others Work with the GNWT to facilitate the transfer of 6 City GNWT -- 2020 Medium untenured Commissioner’s Land GNWT ITI. Chamber of 7 Development a Mineral Resource Strategy City $25,000 2020-21 Medium Mines, Commission an Arts & Culture Master Plan and update the NWT Tourism, DMO, 8 City $60,000 2021-22 Medium existing Tourism Strategy YKFN, GNWT Develop an integrated tourist, investment, worker and NWT Tourism, CanNor, 9 City $40,000 2021 Medium resident attraction strategy GNWT, CDETNO

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Partners/ Estimated Priority Actions Champion Timing Priority Stakeholders Total Costs Work with partners in reviewing the feasibility of GNWT, CanNor GNWT, 10 establishing a business accelerator and/or incubator in Economic Dev. $40,000 2021 Medium Chamber, College Yellowknife. Implement the wayfinding strategy and signage 11 improvements as outlined in the City of Yellowknife City -- -- 2021 Medium Wayfinding Strategy, September 2019 Stage a forum to explore development of a regional angel Investors, Community 12 investor network or investment fund that could increase Economic Dev. Futures, BDC, CanNor $5,000 2021 Low access to capital for local businesses and GNWT Implemented on an Ongoing Basis GNWT, CanNor, Implement a business retention and expansion (BRE) 13 Economic Dev. Chamber, associations $10,000 On-going Medium program. and others GNWT, industry Implement the investment, worker and resident attraction 14 Economic Dev. champions and $75,000 On-going High strategies ambassadors Review any proposed new bylaws, policies or plans by 15 applying an economic lens to assess how the changes are Economic Dev. City, GNWT -- On-going Medium likely to impact on the local business climate Assist key champions, as requested and where possible, in 16 their efforts to implement development strategies and key Economic Dev. GNWT and industry -- On-going High initiatives Report back annually to the City Council, Mayor’s Task 17 Economic Dev. Task Force & Council -- On-going High Force and public on the progress made.

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4.2. Performance Measurement

We recommend that the City of Yellowknife report annually on the progress made in implementing its economic development strategy. We are proposing four types of indicators, including indicators related to inputs, activities, outputs and outcomes.

• Inputs incorporate the key resources that went into implementation of the economic development strategy in the current year;

• Activities are the key activities which were implemented during the course of the year, including a description of the extent to which the planned activities were implemented;

• Outputs are the products or immediate results that are generated by the activities; and

• Outcome indicators report on the intended results associated with the overall strategy and some of the specific activities. However, it should be noted that the economic development activities are typically only one of many factors that may influence the outcomes.

The following graphic illustrates the types of indicators which can be included within each category.

Inputs Activities Outputs Outcomes

• Investment attraction • Reports and strategies • Employment rates • Financial • Advocacy • Website analytics • Capital Investment • Staff/VolunteersMoney • Review of regulations • Prospects • Property Taxes Pathfinding Earned Media Businesses Start ups • • • ‐

The recommended performance measures and data sources are outlined in the table below.

Type Indicators Data Sources • Staff time • Employment records • Expenditures on Economic Development • Municipal budget and expenditure data Inputs • Funding accessed from other sources • Municipal financial data e.g. GNWT, CanNor, etc.) • Volunteer time • Reports by economic development staff • Reported by economic development staff • Progress made against planned activities Activities (e.g. % of completion) • Other activities undertaken • Reported by economic development staff • Meetings/involvement in • Reported by economic development staff committees/data on events attended • Changes to proposed and existing • Municipal data Outputs bylaws, policies and plans • Reported by economic development staff • Reports, studies and strategies produced • Reported by economic development staff • Achievement of service standards • Municipal data • Impressions/views/bounce rate • Website/social media analytics

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Type Indicators Data Sources • Numbers of inquiries, leads and prospects/visits hosted/investment • CRM data attracted • Visitor Centre and the Destination Market • Visitor numbers Organization • Invest attraction and employment • CRM data and follow-up surveys creation • Labour market participation rates • Labour Force Survey • Unemployment rates • Labour Force Survey • Employment by sector and occupation • NWT Bureau of Statistics • Household incomes • Statistics Canada • Number and value of building permits • Building permit data Outcomes • Number of operating businesses • Business license data • Biennial survey of businesses • Perceptions regarding business climate • Business walks • Commercial and industry vacancy rates • Real estate data • Commercial and industrial property • Municipal financial data taxes • Growth in tourism (visitors, sources, • NWT Bureau of Statistics expenditures, hotel occupancy) • NWT Bureau of Statistics and Statistics • GDP by sector Canada

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Appendix I: List of Documents Reviewed

City of Yellowknife

▪ Citizen Budget Results, Yellowknife, Northwest Territories, August 2, 2019, September 2019. ▪ City of Yellowknife Annual Report 2017. ▪ City of Yellowknife, Background Report (Draft) Community Plan Update 2019, Dillon Consulting, October 2019. ▪ City of Yellowknife Business Improvement District Committee, BIABC Conference Report - Vancouver, BC, Kevin Hodgins, April 10 – 13, 2015. ▪ City of Yellowknife 2017 Citizen Survey. ▪ City of Yellowknife, Community Plan Draft for Public Review October 2019. ▪ City of Yellowknife Community Profile Updated March 2019. ▪ City of Yellowknife, Consolidation of Development Incentive Program By‐Law No. 4534 (including Amendments) ▪ City of Yellowknife, Corporate and Community Energy Action Plan, 2015-2025, April 2019. ▪ City of Yellowknife, Council’s Goals and Objectives, 2019-2022. ▪ City of Yellowknife, Destination Marketing Strategy, Tait Communications and Consulting, April 26, 2016. ▪ City of Yellowknife, 2014-2019 Economic Development Strategy, Background Report, December 2013. ▪ City of Yellowknife, 2014-2019 Economic Development Strategy, December 2013. ▪ City of Yellowknife Financial Report 2018, for the year ended December 31, 2018. ▪ City of Yellowknife Investment Brochure 2015. ▪ City of Yellowknife, Municipal Services Committee Agenda, Monday, August 28, 2017 at 12:05 p.m. ▪ City of Yellowknife, Presentation 7To Standing Committee On Social Development Re: Aurora College Foundational Review, October 25th, 2018. ▪ City of Yellowknife, Smart Growth Development Plan, Final Recommendations Report, July 2010. ▪ City of Yellowknife Strategic Plan 2019-2022, 2019. ▪ City of Yellowknife 2015-2019 Tourism Strategy, June 2014. ▪ City of Yellowknife 2015-2019 Tourism Strategy, Background Report, June 2014. ▪ City of Yellowknife, Vision for Downtown Revitalization, October 2017. ▪ City of Yellowknife: Yellowknife Visitor Services Strategy, July 17, 2018, Prepared By: Deborah Kulchiski Consulting and Authentic Experiences Consulting. ▪ City of Yellowknife Wayfinding Strategy, September 2019. ▪ Creating Vibrancy in Downtown Yellowknife: 50/50 Site and Beyond (2018). ▪ Everyone is Home: Yellowknife’s 10 Year Plan to End Homelessness, Turner Strategies, July 2017. ▪ Exploring a Yellowknife Business Improvement District, Presentation (2013/2014). ▪ Grow V 2.0 Yellowknife Food and Agriculture Opportunities Analysis Winter, 2019, April 2019. ▪ Grow V 3.0 Yellowknife Food and Agriculture Opportunities Analysis Spring, 2019, April 2019. ▪ Organizing for Destination Marketing, Destination Yellowknife, Outcrop Communications Ltd. August 9, 2017. (And Guidance Notes Yellowknife Accommodation Levy & Destination

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Marketing Organization Decision: Points& Choices). ▪ Retail Revitalization Strategy Downtown Yellowknife City of Yellowknife Prepared for: City of Yellowknife, Tate Economic Research Inc. September 13, 2019. ▪ Summary Action Report: Yellowknife Business Incentive Strategy and Business Incubation Strategy Framework, September 2, 2015. ▪ University Feasibility and Benefits Study Final Report to the City of Yellowknife January 2019, Strategy Corp. ▪ Yellowknife Dene First Nation, 2016-2017 Annual Report. ▪ Yellowknife’s Downtown: Realistic Ways to Move Forward, Robert Warburton, Co-Founder, CloudWorks, May 2016. ▪ CMHC Housing Market Outlook 2019 ▪ Conference Board of Canada, Territorial Outlook Economic Forecast, 2019. ▪ Det’on Cho Marketing Report 2018/19. ▪ Mayor’s Task Force On Economic Development – Agenda Oct 31,2019. ▪ Mayor’s Task Force On Economic Development – Agenda August 22,2019. ▪ Growing Our knowledge Economy: Why I Support a Yellowknife University, 2019. ▪ City of Yellowknife, Could There Be a University in Yellowknife? ▪ Canadian Destination Marketing Organizations – Focus, Governance, Activities And Funding ▪ Accommodation Taxes Across Canada And Internationally

Northwest Territories

▪ Tourism Programs and Services, 2018-2020. ▪ GNWT Northwest Territories Visitation, November 2018. ▪ Northwest Territories Tourism Marketing Plan 2018-2019. ▪ GNWT Economic opportunities Performance and Measures Report 2016-2017. ▪ Socio-Economic Agreement Report, 2018. ▪ Investigation of the Underlying Challenges in the NWT Economy, 2019. ▪ GNWT Public Service Annual Report 2018/19. ▪ Almost a dozen NWT employers offer certified living wage: Alternatives North, 2019. ▪ Northwest Territories Business Development and Investment Corporation 2019-20 corporate plan ▪ Commercial Renewable Resource Use Policy, 2005. ▪ Community Futures Program 2016-2017 and 2017-2018 Annual Reports ▪ Grants and Contributions Results Report 2017-2018. ▪ Human Resources Services: A Shared Responsibility, GNWT, 2019. ▪ NWT Labour Market Outlook 2018-2027. ▪ GNWT Restaurant and Food Service Receipts, 2012-2017. ▪ Yellowknife Airport Non-Resident Visitor Origin by Country, 2012-2017. ▪ Yellowknife Hotel Occupancy 2018. ▪ Strategy for Revitalizing the Great Slave Lake Commercial Fishery, March 2017

Mining, Oil and Gas

▪ Diamond Policy Framework, JCK 2019, New Ideas, GNWT ▪ Diamond Policy Framework, October 2018, GNWT ▪ Northwest Territories Oil and Gas Annual Report 2018, GNWT ITI, May 2019. ▪ Updates to NWT Petroleum Legislation What We Heard Report, GNWT, July 2018 ▪ Northwest Territories Energy Action Plan; A Three-Year Action Plan and a Long-Term

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Vision, GNWT, December 2013. ▪ Northwest Territories Oil and Gas Annual Report 2018, GNWT ITI, May 2019. ▪ NWT Petroleum Resources: A Path to Northern Benefits and Energy Security, GNWT, March 2018. ▪ Nechalacho Rare Earth Project Small Scaling Mining and Demonstration Project, 2019. ▪ Mineral Potential In The Proposed Ingraham Trail-Thor Lake Infrastructure corridor, 2019. ▪ The First Entrepreneurs Natural Resource Development and First Nations, 2018. ▪ 2017 Socio-Economic Monitoring Report for the Mary River Project, 2018. ▪ Ekati Diamond Mine Socio-Economic Agreement Report, 2018. ▪ Building forever, Gahcho KuÉ Mine Socio-economic report, 2018. ▪ Diavik Diamond Mine, sustainable development report, 2018. ▪ Billions in funding announced for abandoned mine reclamation work, 2019. ▪ Facts and Figures of the Canadian Mining Industry, Mining Association of Canada, 2018. ▪ NRCan Exploration & Deposit Appraisal Statistics for Northern Canada, 2018. ▪ NWT Mineral Development Strategy Progress report 2016-2019. ▪ GMRP Labour Resource Study 2017 ▪ GMRP Socio-Economic Strategy 2016-2021.

Other NWT

▪ Economic Opportunities Strategy October 2013, GNWT ITI, NWT Chamber of Commerce, NWTAC, CanNor, NABA, 2013. ▪ What We Heard and Recommendations, Report Of The NWT Economic Opportunities Strategy Advisory Panel; May 2013; Northwest Territories Economic Opportunity Strategy, October 2013. ▪ Economic Opportunities Strategy Implementation Plan, GNWT, October 2014. ▪ Economic Opportunities Strategy Connecting Businesses and Communities to Economic Opportunities, 2016 To 2018 Progress and Performance Measures Report, GNWT, March 2019. ▪ Economic Opportunities Strategy Connecting Businesses and Communities to Economic Opportunities, 2016 To 2017 Progress and Performance Measures Report, GNWT, November 2017. ▪ GNWT Investment Booklet English (June/July 2017). ▪ Northwest Territories Manufacturing Strategy 2019-2024, GNWT, May 2019. ▪ Northwest Territories Manufacturing Strategy, What We Heard Report January 2018, GNWT. ▪ NWT Chamber of Commerce Annual Report, 2018. ▪ Annual Report 2017-2018, NWT Health and Social Services System, GNWT, 2018. ▪ Government of the Northwest Territories Anti-Poverty Action Plan February 2014, Building on the Strengths of Northerners 2014/15 – 2015/16, February 2014. ▪ Programs and Services in Support of the Traditional Economy in the Northwest Territories, GNWT, April 2012. ▪ Public Service Annual Report, 2017/2018, GNWT, March 2019. ▪ Public Accounts 2017-2018, Section 1 Consolidated Financial Statements, GNWT, October 2018. ▪ Take a Kid Trapping and Harvesting Report 2013-2014, Industry, Tourism and Investment, Municipal and Community Affairs, Environment and Natural Resources, November 2014. ▪ Take One Northwest Territories Film Strategy and Action Plan, 2015.

City of Yellowknife –Economic Development Strategy Page 42

▪ Tourism Holders by Region 2019.

NWT Bureau of Statistics

▪ NWT Bureau of Statistics, www.statsnwt.ca, Released: September 30, 2019, Northwest Territories Population, July 2019. ▪ Hot Jobs Northwest Territories, 2018, NWT Bureau of Statistics, 2018, September 2018. ▪ Various data tables from the NWT Bureau of Statistics website. ▪ Various Excel Files from the NWT Bureau of Statistics website.

Federal/Multi-level

▪ The Canadian Minerals and Metals Plan, Paper: M4-175/2019E 978-0-660-29370-7, February 2019. ▪ Towards a Pan Territorial Growth Strategy, Engagement Paper, Canadian Northern Development Agency, January 2019. ▪ Pan Territorial Growth Strategy, Canadian Northern Development Agency, August 2019. ▪ Northern Housing Report, Canada Mortgage and Housing Corporation, 2018.

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Appendix II: List of Key Informants Interviewed

• Francois Afane, CDETNO • Rebecca Alty, City of Yellowknife • Darrell Beaulieu, Denendeh Investments Incorporated • Matt Belliveau, Northwest Territories & Nunavut Construction Association • Cathie Bolstad, CEO, NWT Tourism • Mike Borden, Giant Mine Reclamation Project • Mark Brajer, Tlicho Investment Corporation • Joe Campbell, Terrax Minerals Inc • Liang Chen, Tourism Services • Josée Clermont, College-Nordique • Alex Clinton, (DDMI) Diavik Diamond Mines • Reneé Comeau, Executive Director, NWT Chamber Commerce • David Connelly, Member Board of Directors and Chair CSR Committee, Avalon Rare Metals • Deneen Everett, Executive Director, Yellowknife Chamber of Commerce • Janine Farmer, Economic Development Manager, City of Yellowknife • Nicole Garbutt, AADNC/AANDC & Giant Mine Reclamation Project • Paul Gruner, President and CEO, Det'on Cho Corporation • Sarah Hodgins, Business & Marketing Officer, Yellowknife Airport • Tom Hoefer, Executive Director, NWT and Nunavut Chamber of Mines • Peter Houweling, Aviation, transportation, and logistics (waste removal services) • Kelly Kaylo, Consultant • Cheryl Keats, Canadian Northern Economic Development Agency • Altaf Lakhani, Former Manager, Canadian Northern Economic Development Agency • Claudine Lee, Dominion Diamond Mines • Camilla MacEachern, GNWT (ITI) • Nalini Naidoo, Director, Planning & Development, City of Yellowknife • Kenny Ruptash, NWT Chamber of Mines • Kerry Penney, City of Yellowknife • Natalie Plato, AADNC/AANDC & Giant Mine Reclamation Project • Monique Robitaille, Agriculture and Fisheries • Ed Romanowski, Touchstone Holdings/Nunastar Properties • Jason Snaggs, CEO, Yellowknives Dene First Nation • Grant Stewart, (DDMI) Diavik Diamond Mines • Pamela Strand, ADM, Minerals Petroleum Resources, Industry, Tourism and Investment • Kyle Thomas, President, Yellowknife Chamber of Commerce • Andrei Torianski, Crown-Indigenous Relations and Northern Affairs Canada • Gary Vivian, Aurora Geosciences • Rob Warburton, Cloudworks, Hospitality • Dr. Tom Weegar, ADM, Post-Secondary Education Renewal, GNWT (ECE) • Sharolynn Woodward, City of Yellowknife

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Appendix III: Economic Profile of Yellowknife and NWT

This appendix provides an economic overview of Yellowknife and the NWT in terms of demographic characteristics, employment, economic structure, and leading sectors.

III.1. Overview of Yellowknife

Population

With an estimated population of 20,607 in July 2018, the City of Yellowknife (“City”) is a dynamic, inclusive community which is home to around 47% of the NWT’s population. It is the territory’s largest community and its hub of financial economic activity.

As of July 2019, there were an estimated 44,541 people were living in the Northwest Territories, a decrease from 44,936 in 2018. Thirteen communities in the NWT experienced population declines between 2001 and 2018. Natural increases and net international migration were offset by the nearly 600 people who moved to other provinces and territories.67

Both Yellowknife and the NWT have a young population in that median and average ages are five to six years below the Canadian average.

2016 Census Data Yellowknife NWT Canada Population 19,569 41,786 35,151,728 Population percentage change, 2011 to 2016 1.7% 0.8% 5% Population density per square kilometer 185.50 0.04 3.9 Land area (square kilometres) 106 1,143,794 8,965,589 Age groups 0-19 25.9% 27.7% 22.4% 20-44 41.4% 38.2% 32.4% 45-64 26.9% 26.4% 28.3% 65+ 5.7% 7.7% 16.9% Average age 34.6 34.9 41.0 Median age 34.5 34 41.2 Source: Statistics Canada (Data is from the Statistics Canada website for the City of Yellowknife and the Northwest Territories)

Twenty-three percent of Yellowknife’s population identifies as Indigenous, compared to 51% for the NWT as a whole and 4.9% for Canada. The 2016 census estimated that 550 people in Yellowknife and

6 Estimated on July 1, 2019 Statistics Canada; https://www.statsnwt.ca/population/population- estimates/PopEst_July2019.pdf 7 Note: there is a small discrepancy in population data between Statistics Canada and NWT Bureau of Statistics. The NWT website shows the territorial population as having been over 41,000 since 2003 and over 44,000 since 2015. It lists the 2016 population as 44,649, a discrepancy of 2,863 compared to Statistics Canada.

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4,635 in the NWT speak Indigenous languages as a mother tongue (820 people in Yellowknife and 6,535 people in the NWT can speak an Indigenous language). The most common Indigenous languages spoken in the NWT are northern Athabaskan languages such as Tlicho, Dene, Slavey-Hare languages, and Inuit languages (Inuinnaqtun (Inuvialuktun) and Inuktitut).

In 2019, the NWT Bureau of Statistics developed population projections for Yellowknife going out to 2035. According to their projections, the population of Yellowknife is forecast to grow from 20,607 in 2019 to 22,314 (an increase of 2,207 residents) in 2035, which represents an 0.5% per year. Most of the population increase is associated with people migrating in from other communities in the NWT. The projected rate of population growth for Yellowknife is well above the rate forecasted for the NWT overall (0.1%) but well below the national average (1.2%). Given a projected decline in the number of people per household from 2.7 to 2.6 over the forecast period, the draft Community Plan recently prepared for Yellowknife estimated that a total of 848 new housing would be needed to accommodate this growth.

Home Ownership

Despite higher incomes in Yellowknife and NWT compared to national averages, homeownership rates in Yellowknife and the NWT are much lower than the national average. Housing affordability is a high priority concern, both for citizens and for business investment decision-makers.

Private households by tenure Yellowknife NWT Canada Owner 56.2% 53.7% 67.8% Renter 43.7% 46.1% 31.8% Band Housing 0.0% 0.1% 0.4% Source: Statistics Canada 2016 Census Education

Yellowknife is home to a well-educated workforce: the proportion of the population with various types of university degrees (except earned doctorates) is higher than the national and territorial average.

Highest certificate, diploma or degree Yellowknife NWT Canada No certificate, diploma or degree 9.4% 20.5% 11.5% Secondary (high) school diploma or equivalency certificate 21.5% 19.4% 23.7% Apprenticeship or trades certificate or diploma 9.3% 11.1% 10.8% College, CEGEP or other non-university certificate or diploma 22.0% 21.7% 22.4% University certificate or diploma below bachelor level 3.5% 2.8% 3.1% Bachelor degree 23.2% 16.9% 19.0% University certificate or diploma above bachelor level 1.6% 1.2% 1.9% Degree in medicine, dentistry, veterinary medicine or optometry 0.8% 0.5% 0.8% Masters Degree 8.2% 5.6% 5.9% Earned Doctorate 0.5% 0.3% 0.9% Source: Statistics Canada Census 2016 (as percentage of population aged 25 to 64 years in private households)

Income

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The city is home to a high proportion of well-educated families earning some of Canada’s highest household incomes. The average family income in 2017 for Yellowknife was $161,796 (based on 5,490 families), higher than for all families in the NWT at $134,057 (based on 11,420 families).

As indicated in the table below, the personal and employment incomes of Yellowknife residents are significantly higher than those of Canadians overall.

2017 Yellowknife NWT Canada Average Personal Income ($)* $74,181 $62,049 $49,003 Total number of tax filers with personal income* 15,100 31,150 27,465,380 Average Employment Income ($)* $72,851 $62,068 $47,302 Total number of tax filers with employment income* 13,280 26,030 19,887,730 Median Family Income ($ all types of families)** N/A $78,610 $58,230 Count of Families** N/A 18,760 16,376,990 Source: *Statistics Canada. Table 11-10-0007-01 Tax filers and dependents with income by source of income; **https://www150.statcan.gc.ca/n1/pub/71-607-x/71-607-x2019007-eng.htm

The higher incomes in NWT and Yellowknife partly reflect the high cost of living in the north. Expenditures on food, shelter, transportation, water, sewage, fuel, and electricity are much higher than the Canadian average. The 2018 Living Cost Difference for Yellowknife was 122 (using Edmonton = 100. Household expenditures are nearly 50% higher than the national household average.

While median and average incomes are high, there is a growing percentage of residents who are categorized as lower-income:

• According to the NWT Bureau of Statistics, 11.9% in Yellowknife residents were categorized as lower-income in 2017 (up from 10.8% in 2004) as compared to 19.1% in the NWT overall (up from 17% in 2004). The percentage of low-income families in 2017 was 9.1% for Yellowknife and 16.8% for the NWT (these percentages have remained more or less constant since 2004). By comparison, in Canada the percentage of the population below the country’s Official Poverty Line hovered around 10% in 2016 and 2017.

• In 2018, the monthly number of income assistance beneficiaries averaged 717 in Yellowknife and 3,190 in the NWT. This was far higher than the corresponding figures for 2009: 440 in Yellowknife (39% increase) and 2,402 in the NWT (33% increase). The population grew by 4.5% over the same period in Yellowknife and by 3.2% in the NWT.

Employment

Unemployment in Yellowknife has been very low. As of December 2019, Yellowknife posted a three- month rolling seasonally adjusted unemployment rate of 3.9% – markedly lower than the national rate of 5.6% and the rate of 13.8% for the remainder of the NWT (i.e. the area outside of Yellowknife). The employed labour force in the NWT in 2018 was estimated at 21,400.

A notable feature of the labour force in both Yellowknife and the NWT is that it is heavily dominated by the public sector, at over four times the national rate. Almost all other industries are underrepresented in Yellowknife in comparison to the national average, with the exception of

City of Yellowknife –Economic Development Strategy Page 47 transportation and warehousing; mining, quarrying, and oil and gas extraction; and information and cultural industries.

Total Labour Force Population (aged 15 years and over) by Industry in 2016 North American Industry Classification System (NAICS) Yellowknife NWT Canada 91 Public administration 26.1% 25.1% 6.0% 44-45 Retail trade 9.3% 9.4% 11.3% 62 Health care and social assistance 8.9% 9.1% 11.5% 48-49 Transportation and warehousing 7.2% 6.1% 4.7% 21 Mining, quarrying, and oil and gas extraction 6.6% 6.0% 1.5% 61 Educational services 6.0% 7.5% 7.2% 72 Accommodation and food services 5.7% 5.1% 6.9% 54 Professional, scientific and technical services 5.7% 3.9% 7.2% 23 Construction 4.9% 7.3% 7.3% 81 Other services (except public administration) 3.9% 3.6% 4.4% 56 Administrative and support, waste management and remediation services 3.5% 3.0% 4.3% 51 Information and cultural industries 2.9% 1.9% 2.3% 52 Finance and insurance 2.2% 1.4% 4.2% 53 Real estate and rental and leasing 1.5% 1.7% 1.8% 41 Wholesale trade 1.4% 1.2% 3.6% 71 Arts, entertainment and recreation 1.2% 1.5% 2.0% Industry not applicable 1.2% 2.9% 2.2% 31-33 Manufacturing 1.0% 1.0% 8.6% 22 Utilities 0.5% 1.3% 0.7% 11 Agriculture, forestry, fishing and hunting 0.2% 0.8% 2.4% 55 Management of companies and enterprises 0.0% 0.1% 0.2% Source: Statistics Canada Census 2016

Retail trade, and health care and social assistance are the next largest industries in terms of employment. Relative to number of people employed per sector as reported in the 2011 Census, the sectors which have experienced the greatest growth include occupations in government, health and arts and culture while the most significant reductions were reported in business, finance and administration as well as natural and applied sciences and related occupations

The table below outlines the number of people employed in Yellowknife by occupational code in 2016 as well as the median income for those positions. As indicated, the median income was $87,141 in 2015, ranging from a low of $29,533 for cashiers to $141,017 for judges and lawyers. The table also shows the number of job openings expected to arise between 2018 and 2027 taking into consideration both increases in the number of people employed in particular occupations (i.e. expansion demand) and the need to replace some workers who leave the occupation or region (e.g. considering out-migration, retirement, and death).

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Number of People Employed in Yellowknife by Occupational Code in 2016

Occupation & NOC Code Job Base Yr. Median Openings Employment Employment (2018- (2016) Income in 2027) 2015 Total Yellowknife 9,855 11,980 $87,481 Skill Level O: Management occupations Legislation and Senior Management (001) 220 260 $116,353 Administrative services managers (011) 205 220 $114,278 Retail and wholesale trade managers (062) 195 205 $67,124 Managers in public administration (041) 145 145 $132,258 Managers in financial and business services (012) 115 115 $112,178 Skill Level A: Occupations usually requiring university education Policy and program researchers, consultants and officers (416) 440 460 $108,831 School teachers and educational counsellors (403) 320 315 $110,896 Professional occupations in nursing (301) 225 225 $117,798 Auditors, accountants and investment professionals (111) 210 220 $107,642 Human resources and business service professionals (112) 200 215 $94,185 Social and community service professionals (415) 135 145 $103,342 Judges, lawyers and Quebec notaries (411) 120 135 $141,017 Computer and information systems professionals (217) 110 145 $102,906 Architects, urban planners and land surveyors (215) 105 110 $92,129 Skill Level B: Occupations usually requiring college education or apprenticeship training Administrative and regulatory occupations (122) 420 440 $89,040 Paraprofessionals in legal, social, community and education services (421) 320 315 $60,593 Finance, Insurance and related business administrative occupations (131) 185 190 $87,639 Transportation officers and controllers (227) 165 175 $56,275 Chefs and cooks (632) 145 130 $49,386 Machinery and transportation equipment mechanics (731) 110 170 $99,118 Skill Level C: Occupations usually requiring secondary school and/or occupation-specific training Retail salespersons (642) 305 330 $49,703 General office workers (141) 235 265 $66,130 Home care providers and educational support occupations (441) 220 230 $56,965 Motor vehicle and transit drivers (751) 195 295 $62,401 Financial, insurance and related administrative support workers (143) 175 185 $76,322 Assisting occupations in support of health services (341) 160 165 $74,582 Occupations in travel and accommodation (652) 130 150 $58,226 Skill Level D: On-the-job training is usually provided for occupations Cleaners (673) 280 305 $55,467 Food counter attendants, kitchen helpers and related support occupations (671) 155 170 $42,576 Other sales support and related occupations (662) 140 150 $32,695 Cashiers (661) 125 150 $29,533

As indicated in the chart below, while data is not available specifically for Yellowknife, Statistics Canada data indicates that across the NWT average weekly earnings tend to be much higher for employees in good producing industries and public administration than, for example, retail trade and accommodation and food services.

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Business License Data

As indicated, over 1,450 business licenses have been issued in Yellowknife. We categorized the licenses by economic category. As indicated in the table below, professional, scientific and technical services account for almost one-quarter of the licenses.

Yellowknife Business Licenses by NAICS # % Agriculture, forestry, fishing and hunting 2 0.1% Mining, quarrying, and oil and gas extraction 14 1.0% Construction 146 10% Contractors 100 6.9% General Labour (e.g. Handyman, Painter etc.) 46 3.2% Manufacturing 8 0.6% Retail trade 124 8.6% Building Material and Garden Equipment and Supplies Dealers 42 2.9% Supermarket/General Stores 39 2.7% Apparel & Accessories 23 1.6% Automotive Equipment Rental and Leasing 20 1.4% Transportation and warehousing 106 7.3% Transportation (Air & Road, Taxi, Shuttle) 29 2.0% Rental & Storage Services 37 2.5% Delivery, Trucking, Freight Services 40 2.8% Finance and insurance 28 1.9% Financial Services 28 1.9% Real estate and rental and leasing 12 0.8% Professional, scientific and technical services 349 24.0% Consultants 128 8.8% Speciality & Business Services 76 5.2% Engineers, electricians and other professionals 145 10% Management of companies and enterprises 99 6.8%

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Yellowknife Business Licenses by NAICS # % Property Management & Services 87 6.0% Security Services 12 0.8% Educational services 17 1.2% Health care and social assistance 127 8.7% Day Care 35 2.4% Health & Care Services 35 2.4% Other professionals and services 57 3.9% Arts, entertainment and recreation 111 7.6% Arts, Crafts, and Media services 55 3.8% Sports, Recreation & Fitness 34 2.3% Other 22 1.5% Accommodation, Food Services and Tourism 157 10.9% Food Services and Drinking Places 91 6.3% Tourism Services 39 2.7% Hotels (Bed & Breakfast) 27 1.9% Other Services (except public administration) 153 10.5% Telecommunications 48 3.3% Janitorial Services 48 3.3% Repair and Maintenance 22 1.5% Personal Care Services (Spa & Salon) 21 1.4% Charitable Services 8 0.6% Other Services 6 0.4% Grand Total 1,453 100% Source: Coding of licensing data downloaded from the city website, October 20, 2019

III.2. The Northwest Territories: Economic Structure

Relationship of Yellowknife and the NWT

As the largest population centre in the Northwest Territories, Yellowknife’s economy is inextricably linked to that of the territory as a whole.

• The city is affected by decisions of the territorial government (the Government of the Northwest Territories, or GNWT) more than any other community, but lacks direct influence over the GNWT’s employment and spending decisions;

• Though the impacts and benefits of natural resource projects spill over into Yellowknife, the city does not hold jurisdiction over the resources being exploited or those being considered for future development; and

• The socioeconomic composition of the city is shifting due to migration from smaller communities in the NWT.

The previous economic development strategy, which covered the years 2014 through 2019, emphasized that the City should “consider its economic development responsibilities beyond the municipal boundaries and become a strong voice in the territorial economy.”

Employment By Sector

The NWT Bureau of Statistics estimates that, in 2018, public sector employees accounted for 46% of the employed labour force (9,300 of the 21,400 people employed) and private sector employers

City of Yellowknife –Economic Development Strategy Page 51 accounted for 48% with the balance being self-employed. The GNWT is the leading single employer. According to the GNWT Public Service Annual Report 2018/2019, the GNWT employed 5,289 people as of March 2019, of whom 2,782 (53%) were located in Yellowknife and Detah.

2018 GDP By Sector

GDP in the NWT totalled $4.7 billion in 2018. Diamond mining (33%) was the largest contributor in 2018 followed by public administration sector (14%). Overall, mining, quarrying, and oil and gas extraction accounted for about 35% of territorial GDP in 2018 ($1.7 billion), which is down from 46% in 2007 primarily because of a decline in oil & gas extraction.

Contribution to GDP (%) by Industry Sector 2007 2018 Goods Producing Sectors Agriculture, forestry, fishing and hunting 0.2% 0.2% Mining, quarrying, and oil and gas extraction Oil and gas extraction 8.7% 0.7% Diamond mining 32.1% 32.7% Support activities for mining, oil and gas 4.2% 1.7% Utilities 1.4% 1.4% Construction 9.8% 8.2% Manufacturing 0.3% 0.6% Sub-total Goods Producing Sectors 56.7% 45.5% Serving Producing Sectors Trade Wholesale trade 1.8% 2.3% Retail trade 2.6% 3.4% Transportation and warehousing 4.2% 5.6% Information and cultural industries 1.4% 1.7% Finance, Insurance, Real Estate and Leasing Finance and insurance 2.0% 2.6% Real estate and rental and leasing 6.4% 7.7% Professional, scientific and technical services 1.7% 2.0% Management of companies and enterprises 0.5% 0.6% Administrative and support, waste management and remediation services 1.1% 1.2% Educational services 3.7% 4.2% Health care and social assistance 4.7% 6.0% Arts, entertainment and recreation 0.2% 0.1% Accommodation and food services 1.6% 1.9% Other services (except public administration) 0.9% 1.1% Public administration 10.5% 13.9% Sub-total Goods Producing 43.4% 54.4% Total 100.0% 100.0% Source: Statistics Canada Data Table: 36-10-0402-01, prepared by: NWT Bureau of Statistics: Millions of Chained (2012) Dollars in Basic Prices

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A forecast by the Conference Board Canada8 projects that the NWT’s real GDP is expected to fall 2.9% in 2021 and then grow by an average of only 1.1% a year for the next 25 years. The combined economies of Nunavut, the Northwest Territories and Yukon’s real economic growth is forecast to average 5.3% in 2019 and 4.4% in 2020. However, between 2021 and 2025, their combined economies are forecast to grow by an average of only 1.5% a year, in part because of the maturing of the mining industry and fewer new mine developments.

8 Territorial Outlook Economic Forecast (Summer 2019), Conference Board of Canada.

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Appendix IV: Overview of Selected Sectors and Opportunities

IV.1. Mineral Industry

Overview of the Sector

The economic growth of the NWT in the 20th century has been largely based on the rapid commercial exploitation of non-renewable natural resources including minerals, oil, and gas. The continues to be mineral potential associated with diamonds, gold, rare earth metals, lead, zinc, uranium, tungsten, rare earths, cobalt, bismuth, silver, nickel, copper, iron, sand, gravel and stone. The territory has an established mining infrastructure and geoscience data resources although no smelters, refineries or pelletizers.

Diamond mining is now the largest single economic contributor, accounting for 33% of GDP in 2018. With its three producing diamond mines, the NWT is the world’s third-largest producer of diamonds (by value). The value of diamond production in the NWT has averaged about $1.8 billion annually over the past 16 years and totalled $2.1 billion in each of the 2017 and 2018 (which represents about 4.5% of Canada’s total mineral production). The graph below shows the value of non-metals mineral production (mostly diamond production) in the NWT over the last twenty years. Value of Non Metals Mineral Production (mostly diamonds) in the NWT 1987-2018 ($ million)

2,500

2,000

1,500

1,000

500

0

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1987 Source: Natural Resources Canada, Annual Statistics of Mineral Production.

Overall, mining, quarrying, and oil and gas extraction accounted for about 35% of territorial GDP in 2018, which is down from 46% in 2007 (primarily because of a decline in oil & gas extraction; oil and natural gas production in the NWT has declined from over $500 million annually in the early 2000s to about $20 million in 2018).

Three diamond mines are operating in the NWT:

▪ The Gahcho Kué mine operation is a joint venture between De Beers Canada Inc. (51%) and Mountain Province Diamonds Inc. (49%). The total capital cost of this mine is $1 billion and De Beers acts as the operator of the mine. About 530 De Beers and contractor workers are

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required to operate the mine during the approximately 12-year life of the mine. The mine began the ramp-up of production in early August 2016 and was officially opened on September 20, 2016. The mine commenced commercial production in March 2017. Mountain Province estimates that total production (100%) during the first five years (2017-2021) is expected to average 5.4 million carats a year9 but average annual production over the mine’s twelve-year life span is estimated at roughly 4.5 million carats by De Beers. Mountain Province is a Canadian company listed on the TSX and NASDAQ with a $200 million market capitalization. The Company’s primary asset is its 49% interest in the Gahcho Kué Diamond Mine and it is also the sole owner of the Kennady North exploration project adjacent to the Gahcho Kué mine. 10

▪ Ekati Mine: In 2017, a U.S. Montana based privately held company, Washington Companies, purchased Dominion Diamond Mines, which gave it a majority stake in the Ekati mine and a minority stake in the Diavik mine in partnership with Rio Tinto plc. A year before selling its stake to Washington companies, Dominion moved its Board and Senior Leadership team from Yellowknife to Calgary in a cost-cutting operation. The move was said to “impact” 100 employees. The Ekati mine began production in October 1998, following extensive exploration and development work dating back to 1981. The mine is set to close in 2034 but Washington Companies Dominion Diamonds subsidiary claims that exploration activities may extend the life of Ekati to 2042.

▪ Diavik Mine: Renowned for high-quality diamonds, Diavik began producing diamonds in January 2003. It is operated by Diavik Diamond Mines (2012) Inc., a subsidiary of Rio Tinto. Under the joint arrangement with Washington Companies, Rio Tinto operates the mine and Washington (Dominion Diamond) pays 40 percent of the mine’s operating and capital costs while receiving 40 percent of the mine’s diamond output. The current mine plan is expected to take the mine’s production to 2025.

The mineral industry also generates significant economic activity related to:

▪ Exploration. Exploration expenditures totalled $919 million over the past 10 years including $78 million in 2019. The leading commodities in terms of exploration expenditures included diamonds ($501 million in expenditures over the past ten years), precious metals ($210 million) and base metals ($115 million). Junior companies accounted for $545 million of the $919 million (59%) in exploration expenditures over the 10 years. In 2018-2019, the GNWT invested nearly $1 million in grassroots mineral exploration through the Mining Incentive Program in 17 exploration projects comprising nine prospectors and eight companies (including TerraX, Strateg X, Pine Point Mining, North Arrow Minerals, Margaret Lake Diamonds and Evrim Resources).

▪ Remediation. The Government of Canada is providing significant funding for mine remediation in the north, including funding for remediating the Giant Mine site. According to the Giant Mine Oversight Board $356 million was spent between 2006 and 2017 in contracts for Giant Mine Remediation Work. It is anticipated that the Giant Mine Remediation Project (GMRP) will be a source of employment and business opportunities for Yellowknife and surrounding communities over the following years. Several studies have been done by

9 http://www.mountainprovince.com/vision 10 http://canada.debeersgroup.com/operations/mining/gahcho-kue-mine

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consulting firms such as Stratos and others to estimate the employment the GMRP will create. This remediation work supports local employment (peaking at perhaps 200 jobs), creates additional opportunities for local suppliers, and could serve as the basis for developing Yellowknife as a centre of expertise in northern-based mining remediation.

▪ Purchase of products and services. Yellowknife serves as a major distribution hub for the mining sector. According to the Conference Board of Canada, the GDP associated with mining services has totalled about $91 million in 2018. The City of Yellowknife also serves as a major supply, transportation and logistics hub for the mines in the NWT.

▪ Construction. Construction is the third largest sector in the NWT after mining and public administration. Along with commercial, residential and infrastructure development, the mining industry has been a major driver for the construction industry. The size of the construction has declined over the past three to four years, once development of the Gahcho Kué mine was completed.

▪ Accommodation and food services. Business travel typically accounts for about 40% of expenditures in the tourism industry. The mineral sector is a significant component of the business travel market.

▪ Donations and sponsorships. ITI estimates that in 2016, the NWT’s three operating mines spent more than $10 million in donations, sponsorships, and other financial contributions. Since 1996, NWT communities have benefited from an estimated $100 million in donations, sponsorships, and contributions.11

Yellowknife also serves as an important bedroom community for workers in the mining industry. According to the GNWT’s 2018 Socio-Economic Agreement Report, the NWT’s operating mines generated 1,592 jobs for northern residents in 2017 of whom 819 are Indigenous. Since 1996, when the first Socio-Economic Agreement was signed with Ekati Diamond Mine, the operating diamond mines have generated 27,000 person-years of local employment. Cumulative diamond mine employment including construction, operations, and closure from 1996 to 2017 was estimated at 56,642 person-years of employment, of whom 49% are northern residents and 24% are northern Indigenous. The 2014 NWT Survey of Mining Employees observed 46% of respondents were NWT residents and 54% resided in other regions (in the previous 2009 survey, 57% of workers lived in the NWT). Significant additional employment is generated in the north and more specifically through the purchase of goods and services by the mines and expenditures in the community by mine employees.

The GNWT implements the NWT Geological Survey Strategic Plan, including carrying out Slave Province geoscience studies, to increase the availability of geoscience knowledge and promote exploration for and discovery of NWT mineral resources as well as defining how permafrost conditions may impact future infrastructure development.

The Mineral Resources Act was passed by the NWT legislature in 2019, marking the GNWT’s first- ever standalone Act governing mining in the territory. Although the City can advocate for mine development and play a role in building public support for mineral development and positioning

11 https://www.iti.gov.nt.ca/en/newsroom/good-mining-contributing-our-communities

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Yellowknife to better capture the benefits, the City has very little overall influence over the factors that will determine if mines are developed.

Management, exploration and production of the NWT petroleum resources are governed by two acts: the Petroleum Resources Act (PRA) and Oil and Gas Operations Act (OGOA). These two acts were mirrored from federal legislation as part of devolution in 2014. Amendments have been proposed to enhance transparency and public accountability throughout the PRA and the OGOA. The GNWT’s Petroleum Legislation, What We Heard Report, 2018 summarized the results of a public engagement campaign which determined that participants were strongly in favour of all of the amendments proposed under the ‘Transparency and Public Accountability’ theme. There was strong support for greater transparency surrounding proposed provisions on environmental liabilities, including de- commissioning sites and for ensuring that publicly-available information is both easily accessible and in plain language. Under the ‘Significant Discovery’ theme, a strong majority of participants favoured changing the current system. There was support from most groups for term limits and the geographic size on Significant Discovery Licenses as well as renewal conditions for their extension.

Outlook

The three diamond mines have reached peak production and, according to the Conference Board of Canada, production will begin declining in 2021. According to the Conference Board’s 2019 Territorial Outlook Economic Forecast, Diavik’ s operating life is scheduled to end in 2025, Gahcho Kué’s in 2028, and Ekati well into the 2030s (contingent on developing the Jay pipe). The Conference Board projects that NWT GDP associated with non-metal mining (i.e. diamond mining) will decline from $1.8 billion in 2018 to $1.0 billion in 2025, which will also impact other economic sectors including government. There is considerable uncertainty regarding timing of the economic shocks.

The Northwest Territories (NWT) constitutes 13.5% of Canada’s total landmass and contains a vast array of mineral deposits and mineral occurrences. A 2016 GNWT report examined 75 deposits that host significant mineralization, distributed throughout the NWT, including gold, silver, base metals, strategic minerals (i.e. lithium, tungsten, rare earth elements and uranium) and diamonds.

Potential new mines are at various stages of development including the $280 million Prairie Creek zinc mine development; $40 million TerraX Yellowknife City Gold exploration, and Avalon Advanced Materials Inc.’s Nechalacho REE project. While important, the number of jobs associated with these developments (e.g. perhaps 250 to 450 jobs at the Yellowknife City Gold exploration and 25 jobs at the Nechalacho project) is considerably lower than employment at the current mines. TerraX announced in December 2019 that it has raised $5 million towards its Yellowknife City gold exploration project.

Mine development is strongly influenced by international supply and demand conditions. Some local factors that can influence investment decisions include access to energy (particularly renewable energy), transportation (including road and air access), and communication infrastructure as well as settlement of land claims. Most planning and regulation for this sector is done at the territorial level in partnership with various federal government departments. Transformative (medium to long term) projects such as bringing 60 MW of hydroelectricity from Taltson to industry, connecting the North and South Slave grids to each other and to the North American grid, or building new transmission lines are unlikely to occur without federal funding for the necessary infrastructure including construction of all-season roads (for building new transmission lines). Potential Actions

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To promote further development of the mineral industry, the City of Yellowknife could work with the mineral industry and other key stakeholders to:

▪ Raise awareness of the importance of the sector to the economy of the GNWT and the Yellowknife. The City of Yellowknife can play an important role in raising awareness of the sector’s importance through endorsing the economic development strategy, issuing a letter of support for the mineral industry as requested by Chamber of Mines, and through its communications with various stakeholders.

▪ Feature the mineral industry as a key sector in its investment attraction activities.

▪ Capture for Yellowknife more of the benefits associated with the mineral industry in the NWT. Opportunities have been identified to increase the participation of Yellowknife suppliers in remediation activities, strengthen the position of Yellowknife as a supplier of products and services throughout the NWT and western Nunavut, and increase the percentage of mineworkers who reside in Yellowknife (rather than commuting to communities in the south).

▪ Advocate for improvements in the investment climate for mineral exploration and development in the NWT. The industry has highlighted the need for government, particularly the GNWT as well as the Government of Canada, to streamline regulatory processes (e.g. permitting, environmental reviews), further incent exploration and development activities (e.g. further invest in geoscience activities and strengthen the Mining Incentive Program), develop needed renewable energy, transportation, and communication infrastructure, and finally settle land claims.

IV.2. Tourism

Overview of the Sector

The latest statistics, released in November 2019, report that 120,130 visitors travelled to the NWT in 2018-201912 spending just over $210 million, a 3% increase over $203 million spent in 2017/2018. The major segment segments are as follows:

▪ Leisure visitation accounted for 73% of visitors and 62% of spending in 2018-2019. Over six years from 2013 to 2019, the main purpose of leisure visitation to the NWT was viewing Aurora Borealis. In 2018-2019, Aurora Viewing eclipsed business travel as the primary motivation for visiting the NWT with 41,500 visitors naming it as the primary motivation for travel to the NWT. This reflects a 153% growth rate over the preceding five years.

Hunting and fishing as the primary purpose of tourism have remained a small and stable market while outdoor adventure has seen rapid growth (243%) and general touring has seen good growth (20%). The Visiting Friends and Family segment of leisure visitation has seen a 9% decline over five years, both in visitor numbers and spending,

12 Tourism Visitation and Expenditures (2018-2019), https://www.iti.gov.nt.ca/en/tourism-research.

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▪ Business travel accounted for 27% of visitors and 38% of visitor spending in 2018-19.

Over the last five years, visitor numbers have increased by 42% in total, including a 58% increase in total leisure visitation. Data from the Yellowknife airport showing Non-Resident Visitor Origin by Country indicates that, after Canada (81,044), the largest number of visitors come from China (19,446), Japan (7,913) US (4,142), and Korea (2,049).

Source: http://www.iti.gov.nt.ca/en/tourism-research

Data from ITI Tourism Research indicates that the number of visitors from European countries such as Germany, France, UK and Italy has seen a decline whereas visitors from Canada have grown.

Tourism is highly seasonal, which is reflected in the wide variation in hotel occupancy rates as illustrated below.

Yellowknife Hotel Occupancy Rates October 2018 to September 2019 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Source: http://www.iti.gov.nt.ca/en/tourism-research, Data refers to 6 hotels (58% of rooms in Yellowknife)

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Overall, occupancy rates declined somewhat in 2019, possibly as a result of the 2019 expansion completion by the Explorer Hotel.

Yellowknife Hotel Occupancy January to September 2018 and 2019

100%

80%

60% 2018 40% 2019 20%

0% Jan Feb Mar Apr May Jun Jul Aug Sep

Tourism helps to support a wide range of businesses (food and beverage, small scale bed and breakfasts, arts and crafts, tour operators, etc.) and provides employment for a labour force with varying skillsets (skilled, semi-skilled).

Outlook/Recent Developments

In 2018, the GNWT passed Bill 18 allowing for the collection of a short term accommodation levy of up to 4% on all short term accommodations in order to fund a DMO. The City of Yellowknife is in the process of developing a bylaw to collect the accommodation levy. The City has developed the “Extraordinary Yellowknife” brand, which was launched in March 2018 including a full brand refresh and website design.

In addition, the City is also working with the industry on a bylaw that will clarify the regulation of short-term rentals properties (there were 236 properties, i.e., 236 Airbnb and HomeAway listings for Yellowknife in October 2019, as compared to 193 listings in October 2018) and their responsibilities with respect to collecting the levy. Occupancy rates for short-term rentals peaked at around 80% in March and September 2019 and dipped to lows of 56% in April. The average occupancy for 2019 was 62%. The average daily rate for an entire place ranges from $190 to $256.

The Northern Frontier Visitor Center, which operated as a non-profit, closed in October 2017 and the City subsequently established a temporary visitor centre operating from City Hall. At this time, there is uncertainty how the DMO will be structured (e.g. will be function be contracted out or managed in- house), where the new visitor centre will be located, and how the visitor centre will be funded. The previous centre received funding from the GNWT and also generated revenues from the sale of various products (e.g. arts and crafts).

Northwest Territories Tourism (NWTT) is the DMO contracted by the GNWT to market the NWT tourism industry through its refreshed Spectacular Northwest Territories brand (spectacularnwt.com). NWTT received nearly $2 million from CanNor and the GNWT for a two-year project to undertake tourism marketing activities in targeted markets, conduct market research and launch web-based tools to attract visitors. CanNor and others also contributed over $400,000 to promote tourism and attract investment from key francophone markets and provide the

City of Yellowknife –Economic Development Strategy Page 60 francophone community in NWT with entrepreneurial capacity-building tools and training. NWTT plans are aligned with the GNWT “Tourism 2020, Opening our Spectacular Home to the World” which aims to increase the visitor spend to $235 million by 2020. Opportunities identified in this strategy include the Chinese market and the GNWT’s goal of attracting 2,000 more residents to the NWT by 2019 by increasing the “Visiting Friends and Relatives” market.

Multiple strategies have been developed for the tourism sector including GNWT’s Tourism 2020; the NWTT Marketing Plan 2018-19; the Yellowknife Visitor Services Strategy 2018; the City of Yellowknife 2015-2019 Tourism Strategy.

Various opportunities have been identified to develop additional tourism products to increase visitation during the shoulder and off-peak seasons as well as increased activity levels and expenditures during the peak periods including:

• Further developing the market for Aurora viewing. Access to land has been identified as a constraint. Under a GNWT pilot, 10 parks were opened for Aurora viewing to operators at a winter rate. However, some members of the industry expressed concerns regarding the impact of the pilots in terms on the viability of the sector and the quality of offerings.

• Development of tourism products featuring Indigenous culture. The Yellowknives Dene First Nation is currently conducting a feasibility study related to development of an Indigenous cultural centre that “creates a story for Yellowknife” and speaks to the history of the city as the home of a unique Indigenous culture. The NWT Tourism 2020 Strategy incorporates a focus on Aboriginal culture and adopting the recommendations of the NWT’s Aboriginal Tourism Champions Advisory Council (ATCAC).

• Development of additional accommodation capacity. Suggestions have included development of additional hotel capacity and expansion of camping and RV facilities.

• Expanding access to tourism products based on Aurora viewing as well as winter outdoor adventure activities such as dogsledding, snowmobiling, snowshoeing, ice fishing, ice road tours, and cross-country skiing. Other outdoor adventure activities wildlife viewing, hiking, cycling, boating, fishing and hunting.

• The development of geotourism products, with a particular focus on the mining industry. A mine tour has been developed at the Diavik mine. There is also interest in developing a mining museum which could be situated on the Giant mine site. Similar attractions (e.g. MacBride Copperbelt Mining Museum in Whitehorse) have been successful in attracting visitors during the summer months. The Giant Mine presents an opportunity to focus on the history of gold and diamond mining in the region, the reclamation process, and changes in mining practices over time.

• Use destination events including conferences, cultural events, sports tourism, culinary tourism and healthcare services (particularly for residents from other regions of the north) to attract additional visitors to the region.

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Potential Actions

To promote further development of the mineral industry, the City of Yellowknife could work with the tourism partners and other key stakeholders to:

▪ Develop and pass bylaws required to implement the hotel levy and regulate short-term rentals. In January 2020, the City held public hearings to address the concerns of organizations such as the Yellowknife Hotel Association and NWTT. City administration will summarize the public hearing and present options for council to consider. It will send three bylaws: zoning, business license and fees and charges bylaw, for second reading all at the same time.

▪ Implement a governance structure for the Destination Marketing Organization (DMO) and visitor services centre that will be effective in attracting, serving and maximizing the economic benefits of tourists. At this time, there is uncertainty how the DMO will be structured (e.g. will the function be contracted out or managed in-house), where the new visitor centre will be located, and how the visitor centre will be funded. The previous centre received funding from the GNWT and also generated revenues from the sale of various products (e.g. arts and crafts).

▪ Encourage the development of additional tourism products as a means to increase visitation during the shoulder and off-peak seasons as well as increased activity levels and expenditures during the peak periods.

▪ Develop a City of Yellowknife Arts & Culture Master Plan to guide long-term decisions making and investments in arts and culture and update the City’s Tourism Strategy (which was last prepared in 2014).

▪ Implement the wayfinding strategy and associated improvements to signage.

▪ Feature the tourism industry as a key sector in the investment and talent attraction activities. The high costs of living combined with limited availability of good affordable rental housing, makes it difficult for tourism businesses to recruit and retain employees. The living wage for Yellowknife is in the range of $24 to $25 per hour.

▪ Explore the potential to introduce border services at the Yellowknife airport which would allow for direct international flights.

IV.3. Post-secondary Education

Overview

In 2018, the then Minister of Education (Caroline Cochrane) and current Premier said she envisaged creating a "destination polytechnic university" in the NWT capable of drawing students from elsewhere in Canada, not just an institution designed to serve the local population. Subsequently the City advocated for a clear post-secondary vision, citing the features of Yellowknife as an optimal headquarters location considering the size of the City's population, its amenities, housing, part-time employment opportunities, recreational opportunities, and interest from Canadian and international students to study in a major diverse Northern city centre.

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January 2019 saw the publication of A University Feasibility and Benefits Study Final Report to the City of Yellowknife. This Study concludes that the most feasible path to transforming NWT’s post- secondary system lies in establishing a polytechnic university which offers programming that is specialized and aligned with labour market needs for both applied and academic learning. The Feasibility Study outlined a roadmap through which the institute would evolve from a college to a polytechnic university.

The study suggests that a federated model would help to accelerate a lean start-up approach for a polytechnic university. This is one in which individual members have the authority to offer degree- eligible credits that speak to a specialized educational need (e.g. Indigenous traditional knowledge, Francophone education, job skills development) and can leverage shared resources (libraries, IT, administration, recruitment). Regardless of the model that is chosen, stakeholders were adamant that a “made in the NWT” solution is needed.

Establishment of a university in Yellowknife would:

▪ Be a direct economic driver, attracting international students and students from other parts of Canada.

▪ Enable the development of courses and research targeted specifically at subjects relevant to the local environment. Of particular interest to local industry would be the development of courses and research focused on the mineral industry, contributing to the establishment of Yellowknife as a Mining Technical Centre of Excellence, with a particular emphasis on northern mineral exploration, development and remediation.

▪ Increase access to skilled workers, both by helping to retain local youth who may attend university in the south and not return as well as attracting students from outside the region who will stay;

▪ Support the development of Yellowknife as a Centre for Northern or Arctic Research in diverse fields of inquiry. This could build on the Wilfrid Laurier University (WLU) 2010 research partnership (extended to 2030) with the GNWT to conduct environmental research and monitoring as well as enhance the NWT’s ability to manage its natural resources for future generations. Aligned with this partnership, WLU has led two major Canada Foundation for Innovation (CFI) initiatives valued at more than $15 million (including the Canadian Aquatic Laboratory for Interdisciplinary Boreal Ecosystem Research and the Changing Arctic Network. These CFI projects have significantly supported the development of infrastructure platforms throughout the NWT.

There are numerous examples of northern universities in Scandinavia including the University of Tromso, Barents Institute, Finnmark University College, Sami University College, Umea University and Harstad University College. The Yukon legislature has just passed a bill to make Yukon College a university. Mirny, Russia is an Arctic diamond mining town of 40,000 with characteristics similar to Yellowknife. It is home to Mirny Polytechnic Institute of the Ammosov North-Eastern Federal University, which offers a wide range of courses including specialized programs for the minerals industry (the School of Mining and Petroleum Engineering offers specializations in exploration, mining or mineral processing drawing on its laboratory facilities and field practices in working mines under conditions of permafrost).

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In June 2018, the GNWT released the Aurora College Foundational Review which provided a roadmap for the transition of Aurora College into a polytechnic institution capable of granting both college diplomas and university degrees. A key recommendation of the review was that the polytechnic institution be headquartered in Yellowknife, rather than at Aurora College’s main campus in Fort Smith. Community satellite campuses would be maintained in Inuvik (Aurora) and Fort Smith (Thebacha). In October 2018, the GNWT responded to the Review, accepting or partially accepting all recommendations.

In November 2019, the NWT named eight Canadian institutions to an “academic advisory council" from which it will receive advice during the process of transforming Aurora College into a polytechnic university. Strategic planning is now due to take place throughout the fall and winter, with work to “design and carry out the transformation" beginning in March 2020.

Potential Actions

There is a broad consensus that a university in Yellowknife offers economic and social benefits (training skilled labour, economic opportunities) and will help establish Yellowknife in the knowledge economy space (cold weather testing, climate change research, mining technology, greenhouse technology, tourism programs, etc. depending on need and programs offered).

Council established the University/Post-Secondary Advisory Committee (UPAC) in May 2018. The purpose of UPAC is to provide advice and guidance to the City in its efforts to establish a university/post-secondary institution in Yellowknife. To promote development of a university, the City of Yellowknife could:

▪ Champion the development of a university in Yellowknife, working closely with key partners including the GNWT, UPAC, the Academic Advisory Council, other universities and research organizations and Indigenous governments.

▪ Support the development of the campus in the downtown area. In its Community Plan, the City has identified the downtown area as the preferred location for the university. A downtown location would be an important economic driver for revitalizing the downtown core.

IV.4. Revitalization of Downtown Yellowknife

Overview

The retail and wholesale trade is the fourth largest sector in the NWT economy, accounting for about $300 million in GDP annually. Retail expenditures in Yellowknife were estimated at about $265 million in 2018, including $115 million in food and beverage retail and $149 million in other retail products and services.

For the purposes of downtown revitalization, downtown has been defined as the area within 47th Street to 54th Street, 49th Avenue to 52nd Avenue. Homelessness, poverty, safety, security, cleanliness, addictions and mental health issues in the downtown area have been identified as long- standing concerns of both residents and businesses. The 2017 Citizen Survey Followup conducted with Ipsos Reid noted:

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▪ 93% of residents rated the overall quality of life in Yellowknife as good. However, when asked if the quality of life has improved or worsened, 29% of residents stated that it had worsened and only 10% felt it had improved. ▪ 51% of residents felt that the downtown is not well maintained; 59% felt downtown Yellowknife is not safe; 64% felt downtown Yellowknife is not clean and 73% of residents felt that the downtown is not vibrant. ▪ 69% of residents cited social issues as the first or second most important local issue facing the City of Yellowknife, a marked increase from 36% in 2014. 23% of residents cited the economy as the most important local issue, an increase from 19% in 2014.

“Everyone is Home: Yellowknife’s 10 Year Plan to End Homelessness” was endorsed by Yellowknife’s City Council on June 26, 2017. The document emphasizes how Yellowknife is currently at a crossroads as a community: “Whether thinking about the economic future, urban revitalization, commitment to authentic Reconciliation, or approach to governance, the city has to grapple with emerging complex social challenges if it is to become the prosperous and thriving community.”

Solving these broad social issues in a meaningful way requires cooperation between various levels of government and concerted efforts. Aside from the significant human cost, these issues have a strong negative impact on economic development, discouraging use of the core area by residents and business investment and increasing retail vacancy rates which in turn further discourages foot traffic.

Downtown Yellowknife consists of a mix of commercial retail, office and institutional land. Apart from the Centre Square Mall, where the vacancy rates are very high, the vacancy rate for retail space in the downtown area is low (the overall rate was estimated at 10% in the 2019 Downtown Yellowknife Retail Revitalization Strategy). The study indicated that there has been a continuing migration of businesses and retail spending to large format retail locations on Old Airport Road. Some of the existing buildings in the downtown area are outdated for current market needs.

According to the Community Plan, vacancy rates for office space are also nearing 10% (7% to 8% excluding the Bellanca Building which currently sits idle and may be considered for redevelopment). The plan also noted other vacant lots and degraded structures which require redevelopment. In spring 2019, seven properties ranging in size from 1,500 to 7,500 square feet were available for lease in the Downtown.

Downtown revitalization has been firmly established as a key priority for the City Council. The City of Yellowknife has established a Vision For Downtown Revitalization and commissioned the Retail Revitalization Strategy for Downtown Yellowknife (September 2019). Every community engagement exercise held in the past few years has shown that Yellowknife residents are extremely concerned about homelessness and poverty in the downtown core.

Potential Actions

For most communities, deterioration of the downtown area tends to be more of a demand issue (e.g. not enough people come into the area to purchase goods and services) than a supply issue. If demand for products and services increases, so will the supply. A variety of strategies could be used by the City to generate increased demand such as:

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• Working with other levels of government, non-profits, social enterprises, the private sector, community policing initiatives and others to help address the social issues, building on its current activities in areas such as Homelessness Employment Program, the Street Outreach Program, and the Arctic Indigenous Wellness Camp.

• Attracting key tenants to the region that will increase the volume of foot traffic in the region (e.g. by establishing a university, a business incubator and accelerator, a visitors centre and popups in the neighbourhood). Currently, there are about 2,700 daytime workers located in the area.

• Increasing the number of people living in the area (increasing the number of local housing units through promoting high-density residential developments). Currently, there are about 1,500 residents living in the area.

• Most of Yellowknife’s residential areas are located outside of the Downtown. The City has implemented a residential intensification project to increase the residential development in the Downtown by lowering taxes paid by residents or developers.

• Promoting the development of events, concerts, food markets, patios and other placemaking which will attract people to the area.

• Improving public transit (providing more ready access to the downtown area),

• Promoting the area and working to change resident perceptions regarding the downtown area.

• Improving the attractiveness of the area (incentivizing leasehold improvements, streetscaping, improved lighting, cleaning, and improved wayfinding).

Development of the 50/50 vacant parcel of land earmarked for higher mixed-use density has been identified as a high priority. On the supply side, a variety of strategies can be used to increase occupancy rates including development incentives, zoning, and working with owners to promote vacant properties in the region.

Establishment of a local business improvement area would also help to coordinate and implement revitalization activities. The Revitalization Strategy noted that the City of Yellowknife devotes some municipal staff time and several private sector organizations organize some downtown activities and events. However, no single entity is officially tasked with guiding or assisting with business or property development or with marketing downtown Yellowknife.

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IV.5. The Airport and Cold Climate Testing

Overview

Yellowknife is well-positioned to conduct cold-weather testing of technology. In addition to ready airport access and its climate, it has been speculated that one of Yellowknife’s assets as a cold climate testing centre is centred around the privacy offered by the City. Various companies including Bell Helicopters, Porsche Sikorsky, Airbus/Bombardier, and General Motors have tested equipment in Yellowknife. In 2018 it was announced that an unnamed Korean company would conduct cold climate testing at the airport in 2019. Most recently, in January 2020, Airbus sent a testing team to Yellowknife in connection with a project for the A220-300, built by a Québec-based partnership between Airbus and Bombardier under the Airbus name. It was reported that the A220 flew to the Northwest Territories to work on "expanding the cold temperature operations envelope of the aircraft down to -40C."

In 2017, Wilfrid Laurier University (WLU) opened a research office in Yellowknife for cold regions research.13 The office, which is located in the W.H. Bromley Building in downtown Yellowknife, is home to year-round staff, primarily research associates and postdoctoral fellows. It also provides a workspace to visiting faculty, students and staff. It is a base for Laurier's research activities in the North and for liaising with partners, including various levels of government and Indigenous communities. WLU’s 2010 research partnership with the GNWT has been extended to 2030. Laurier’s research priorities in the North include research on climate change, water, permafrost, forest ecology, northern food security and infrastructure development. Although no university classes are held at the office, it will periodically host special events in Yellowknife where the public can learn about WLU research and partnerships. The office will also serve as a base for organizing community outreach activities elsewhere in the NWT.

A working group including representatives from the GNWT government, Yellowknife Airport, the City of Yellowknife, and NWT Tourism has come together to market the area as a cold-weather testing destination. The Yellowknife airport is currently preparing a brochure on its cold-weather testing capabilities for Destination Canada to market globally as part of its efforts to raise the profile of Canada’s aerospace sector. Some of the tenant companies currently involved in the cold weather testing initiative at the Yellowknife airport include Diamond Air, Buffalo Airways, Det’on Cho Logistics, and Great Slave Helicopters.

Other communities in Canada, the US and Europe have been successful in developing markets for cold-weather testing. For example, the University of Alaska at Fairbanks has a cold climate housing research centre and private companies offer cold-weather testing for aviation companies. Thompson, Manitoba, is a leader within Canada. Thompson has developed a year-round facility for engine testing and certification with funding from industry, the Government of Manitoba and the Government of Canada, and is actively marketing its resources (http://mbaerospace.ca/aerospace-in- manitoba/capabilities/cold-weather-testing/). With an average 240 days a year of sub-zero temperatures, up to six months of snow cover, and an average annual 103 days with a daily low temperature of -20C/-4F or below, Thompson provides a testing season far longer than most other

13 https://www.wlu.ca/academics/research/northern-research/yellowknife-office.html

City of Yellowknife –Economic Development Strategy Page 67 test centres. Major manufacturers from North America, Germany, Japan and Southeast Asia have been carrying out real-world winter and cold weather testing in Thompson since the mid-1980s. Some of its assets for cold-weather testing include General Electric’s large engine Research and Development Test Centre in Winnipeg and the Global Aerospace Centre for Icing and Environmental Research (GLACIER) which is a joint venture between Rolls-Royce and Pratt & Whitney that provides year- round engine testing and certification and specializes in engine icing. The facility also provides a variety of performance, endurance and specialty testing on a year-round basis outside of the icing season.

Potential Actions

The City of Yellowknife should work with the working group in marketing the area as a cold-weather testing destination. Some of the key elements of the economic development strategy can contribute to the further development of the market for cold-weather testing. In particular, the City can:

• Feature cold-weather testing in its marketing activities and on its website. A first steps would be to post a profile of the existing assets (e.g. companies currently offering services, average annual number of cold weather days in Yellowknife, average number of snow days, meteorological and climate profiles for the City, etc.) • Advocate for further investments in developing the sector. Further research is needed to determine what investments in equipment and infrastructure would most benefit the cold climate testing capabilities. • Continue its efforts to establish a university in Yellowknife, which would augment the cold climate testing capabilities of the region. • Work to further expand the visitor capacity in the region. In 2018 it was reported anecdotally in the media that manufacturer Mitsubishi and aerospace company Embraer had cancelled a cold climate testing project due to “a lack of available accommodation” with “54 rooms being needed for a month”. However, some industry representatives have disputed that. Since then, the Hotel Explorer has completed a 72 room expansion in 2019 and the Slave Lake Inn will open in 2020.

The development of Yellowknife as a centre for cold-weather testing would also benefit from further development of the airport. Some of the suggestions are to:

1. Upgrade the infrastructure (including extending the runways as well as water and sewer). A constraint to expanding the airport is the limited availability of surrounding land and the need for setbacks from other infrastructure. 2. Establish YZF as an international airport (i.e. with border services); and 3. Enhance the ability of the airport to serve as supply depot/logistics hub for communities and mines in the north. The airport is a critical link to many communities; four NWT communities rely exclusively on air and marine services, while ten are accessible by road only through winter roads.

With the coming into force of the Yellowknife Airport (YZF) Revolving Fund on July 1, 2017, the airport changed from a funded GNWT line item to a self-sustaining entity. Under this new structure, the airport will retain and reinvest the funds that are generated, enabling it to operate like a business and support growth opportunities. The airport is developing a 20-year Masterplan (2020-2040) which will outline various strategic initiatives that it may pursue.

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IV.6. Agriculture and Fishing

Agriculture

The high cost of food and a desire to rely on sustainable local food resources while maintaining regional traditions and culture has led to a revived interest in the agriculture sector and a greater push on expanding the fishing industry. The average household in Yellowknife spends $11,690 per year on food, over $3,000 more than the Canadian average. The vast majority of food in Yellowknife comes from outside of the region. A 2013 study by the Aurora Research Institute, estimated that residents consume between 130 and 190 kg of fresh fruits and vegetables annually, well below the national average of 213 kg.14 Most of the produce consumed in the NWT is shipped in from Canadian, American and Mexican farms. This could indicate a latent demand for affordable, high-quality fresh produce. In 2012, the NWT was estimated to have the second-highest level of food insecurity in Canada after Nunavut with 29% of children living in food-insecure households.

Historically NWT had developed a relatively thriving agricultural industry out of necessity. There were experimental farms, dairy farms, an abattoir, and large market gardens in most communities. This changed with increased accessibility with roads, planes, and cheap fuel. Now, rising food prices and recognition of the need to reduce dependence on a cyclical resource economy are leading to a new renewed interest in sustainable local agriculture.15 Some of the made in Yellowknife foods include birch syrup; fresh and smoked fish; dried wild berries; artisanal breads using local ingredients; ready meals using local ingredients; wildflower arrangements; and beer. Aurora College has been active in promoting research and training on agriculture in the NWT as reported in the 2016 NWT CanGrow Northern Greenhouse Technology Report.

In 2019, the City published GROW, an abbreviated name for the Yellowknife Food and Agriculture Strategy.16 Building on the vision and principles in the Yellowknife Food Charter, it is a long-range plan for increasing community and commercial opportunities in Yellowknife’s urban food and agriculture system. It aims to leverage connections to the land and culture while increasing food security by increasing the amount of food that is grown, raised, hunted, fished, and foraged locally. It focuses on objectives and actions that are within the municipal boundaries of Yellowknife and the jurisdiction and mandate of the City. The goals of a sustainable food system include respecting traditional practices and improving overall health outcomes.

The City has historically not planned or regulated for urban agricultural land uses such as urban livestock and commercial greenhouses. The Strategy outlined a variety of actions to build a sustainable urban agriculture system (for commercial and private use) including:

• Amending or creating new bylaws including Zoning Bylaw (#4404) to permit urban agriculture in appropriate areas; Tax Administration Bylaw (#4207) to reduce taxes/fees for commercial agriculture businesses; Land Administration Bylaw (#4596) to encourage food and agriculture business through land disposal and concessions for land tenure decisions; Business License Bylaw (#3451) and Development Incentive Bylaw (#4534) to incentivize food and agriculture businesses; develop guidelines to permit small livestock and apiculture;

14 Aurora Research Institute, AgNorth Modular Farm Concept Market Study and Technical Design 2013. 15 V2.0-GROW-Opportunities-Analysis-Updated-April-26-2019. 16 Yellowknife Food and Agriculture Strategy (GROW), V3.0 Spring 2019.

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and include food and agriculture considerations in new developments (e.g. community gardens or kitchens, etc.)

• Improving access to basic infrastructure like soil and water, address historical soil contamination with arsenic, and expand growth of edibles on city land. Mining activity has left large amounts of arsenic trioxide in lake sediments and soils across the region, including areas within City boundaries.

• Involve initiatives: involve the community in stewardship, learning, training, social events, farmer’s markets, etc.

• Helping to create networks, value chains, local branding and tourist marketing campaigns but also allowing farm gate sales from private property.

• Advocating funding from GNWT/ITI for large initiatives and develop partnerships with local, regional, and territorial organizations such as Business Development Investment Corporation, Yellowknife Chamber of Commerce and Le Conseil de Dévelopement économique des Territoires du Nord-Ouest (CDÉTNO). Apart from urban agriculture, key informants noted the potential larger-scale operations (e.g. greenhouses using waste heat from mines).

There are at least three different streams to urban agriculture which may require three different approaches. These include commercial growers, community gardens and private (in backyards) gardens. All three streams need to grow in parallel. The importance of backyard gardening was emphasized as the prices at Farmer’s Markets are currently not considered accessible to everyone. As noted, a 2013 study by the Aurora Research Institute suggested latent demand for affordable, high-quality fresh produce.

Fishing

The current quota for the Great Slave Lake fishery is 1.68 million kilograms. After the establishment of the Freshwater Fish Marketing Corporation (FFMC), annual production climbed in the 1970s to about 1.5 million kilograms. However, by 2009/10, production reached a low point of 258,000 kilograms as a result of a number of factors including the US/Canadian exchange rate, the closure of the lake receiving stations; changes in federal government policy regarding subsidies; ageing fleets and owners; competition; and low prices to fishers. The commercial fishery currently generates over $1 million annually to the territorial economy.

In March 2017, the GNWT published a Strategy for Revitalizing the Great Slave Lake Commercial Fishery. The strategy outlines 25 recommended actions grouped under four overarching strategic goals: increasing lake production; increasing processing in the NWT; growing the NWT market; and accessing export markets. Since its release, work is proceeding on the development of a fish processing plant in Hay River, working closely with the NWT Fishermen’s Federation. The Government of Canada and the GNWT contributed $8.9 million in funding for the plant, which is supposed to be operational by the fall of 2020. A federal panel has recently recommended transformation of the FFMC (which has exclusive rights to sell fish in the NWT) over a period of three years. The FFMC had faced complaints that it was not acting in the best interests of fishers.

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IV.7. Value-added Manufacturing

The vast natural resource wealth of the NWT has not translated to the establishment of a vibrant local manufacturing sector. Although the sector’s contribution to the GDP almost doubled from $17 million in 2007 to $32 million in 2018, it still only contributed 0.6% to GDP in 2018 and employed 1% of the territorial labour force. The number of people employed in the NWT manufacturing sector (direct and indirect) in 2015 was approximately 140.17 The NWT manufacturing sector largely consists of small-scale “cottage,” artisanal and micro manufacturers (i.e. individuals producing and selling out of their homes). The most prominent types of this manufacturing are the processing of locally harvested animal, plant and biomass products and the creation of arts and fine crafts. Products from the manufacturing sector also include custom furniture, metal fabrication for the mining industry, and boats.

To date, the NWT has not established a strong base in diamond polishing and related manufacturing activities. The GNWT published the Diamond Policy Framework in fall 2018. The objective of the policy is to support a sustainable diamond manufacturing industry in the NWT as well as other diamond related value‐added activities. In August 2019, DeBeers Group, through its Sightholder Almod Diamonds Ltd. opened the first diamond cutting and polishing operation in Yellowknife since 2009 when Tiffany and Co.'s Laurelton Diamonds and Arslanian Cutting Works both closed polishing plants laying off more than 90 workers. Dominion Diamonds sorts and values its rough diamonds at its own facilities, selling them directly to manufacturers for cutting and polishing through their sales offices in Antwerp and Mumbai.18

The manufacture of synthetic diamonds both represents a potential competitor for the NWT and a potential opportunity. De Beers has launched its own Lightbox synthetic diamonds line. Recent studies have estimated that the market for lab-grown diamonds increased from about 1% of the $14 billion rough diamond market in 2016 to perhaps 3% today.

The GNWT has prepared a Manufacturing Strategy (2019-24) which focused on four strategic objectives: establishing a strong manufacturing association and sector; improving access to business information, services and capital; renewing the Northern Manufactured Products Policy; and growing the manufacturing sector. One of the proposed actions includes the development of a makerspace in Yellowknife (as well as Inuvik, Hay River and Fort Smith). Beginning in 2019-20, the GNWT will support the activities of the NWT Manufacturing Association (NWTMA). ITI also committed to establishing a ‘pathfinder’ point of contact for the NWT manufacturing sector that works with NWT manufacturers within the GNWT procurement system to identify opportunities. This pathfinder will also work with the NWTMA to ensure their concerns are considered in future procurement policy discussions.

IV.8. Other Opportunities

Some of the other opportunities have been highlighted in the research include:

17 Northwest Territories Manufacturing Strategy What We Heard Report, Summary of Notes and Findings, January 2018, Department of Tourism, Industry and Investment, NWT. 18 https://www.cbc.ca/news/canada/north/diamond-cutting-polishing-factory-opens-yellowknife- 1.5245502

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Accessing Renewable Energy

Both key informants and businesses highlighted the need to hasten development of the Taltson Grid Expansion and Great Slave Lake intertie connecting the Taltson and Snare Systems, which increase access to much needed renewable energy and reduce energy costs. The lack of a commercially cost- effective energy generation and distribution infrastructure in the NWT is a key constraint on the territory’s social and economic development across most industrial sectors. It is especially a constraint on energy-intensive industries such as mining and manufacturing.

The NTPC has already been working towards this goal for several years. The NTPC’s19 20 Year Strategic Plan outlines its ten-year agreement with the GNWT to access funding from the Investing in Canada Infrastructure Program (ICIP) for the expansion of the Taltson Hydroelectric Facility (estimated cost over $1 billion) and a Great Slave Lake transmission intertie20. Approved projects receive 75% funding from the federal government and 25% from the GNWT. The Taltson River system has the potential to support 200 Megawatts (MW) of renewable hydroelectricity generation capacity. The first phase of the project (5-10 years) is to expand the existing 18 MW hydro plant to 60 MW plant utilizing existing water storage with no new flooding.

The transformative energy infrastructure projects (Taltson Expansion and transmission inter-tie construction) are contingent on federal funding and on additional federal funding for the Slave Geological Province Corridor (the transportation corridor is needed for the construction of the transmission line). In 2019, the federal government announced funding support ($1.2 million in 2019) for initial technical studies related to the Taltson Expansion and the Great Slave intertie. As an initial step, the GNWT and federal government announced in 2018 (through ICIP) they would spend $24.6 million upgrading and repairing turbines and generators at the Snare Forks hydroelectric facility which has faced severe problems, forcing a higher use of diesel generation. In January 2020 update, the GNWT’s Department of Infrastructure announced it would first assess all the options to make sure the existing plan for the Great Slave inter-tie is the best option.21 A consultant has been approached though costs were not available.

In 2018-19, NTPC met with potential mining customers to discuss their anticipated power needs and responded to an RFP from one of those companies. NT Hydro submitted a proposal in a competitive bidding process to Fortune Minerals Ltd. to supply power generation at its NICO mine site as part of the objective to increase its industrial customer base.

In its Vision for the NWT Power System Plan (December 2013), NT Energy had proposed as a 6-20 year recommendation:

• The interconnection of the existing Snare and Taltson transmission grids to create a single synchronous grid (the “NWT Grid”). An NWT Grid would be created by interconnecting the

19 The key players in the development of NWT’s energy infrastructure are NT Hydro (and its subsidiary the NT Power Corporation or NTPC), which is wholly owned by the GNWT. 20 A proposed high voltage direct current (HVDC) cable crossing a shallow 100-kilometre stretch of Great Slave Lake. https://www.nwtgeoscience.ca/forum/session/crossing-great-slave-lake-examining-potential- submarine-cables-and-hvdc-technology 21 https://cabinradio.ca/28628/news/environment/nwt-will-study-alternatives-to-taltson-submarine- cable/

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existing Snare Grid (located in the North Slave Region) and the Taltson Grid (located in the South Slave Region) and extending the proposed NWT Grid Northeast of Yellowknife to a North Slave Transformer Station located within the North Slave Geological Province. • Interconnections with either the Saskatchewan or Alberta grids. • Extension of the Taltson grid to Fort Simpson; and • Intermittent power options (i.e. solar or wind) in several diesel reliant communities for offsetting diesel fuel consumption.

Energy security is also a key issue for the NWT with its heavy reliance on trucked-in diesel and LNG. In the NWT, electricity is generated by petroleum (53%), natural gas (13%), and hydro for the remainder.22. In years with normal precipitation, hydro can generate 95% to 99% of the electricity on the Snare Grid, which includes Yellowknife. During drier years, most notably 2014/15 and 2015/16, hydro provided an average 68% of the electricity on the Snare Grid. Diesel-fired generation provided the other 32%.

The City’s Corporate and Community Energy Action Plan 2015-2025 sets the city’s long term “aspirational target” as 100% renewable energy by 2050. Electricity represents 20% of the city’s energy use, yet 33% of the energy cost. The communities on the Snare hydroelectric grid (Behchoko, Dettah, N’dilo, and Yellowknife) have been facing significant upward pressures on the price of electricity in the last few years. These pressures can be attributed to inflation, recent rate equalization between communities, and the increased use of diesel to compensate for the lower water levels experienced in recent years. Decreasing energy costs would decrease the operating costs to business and increase the disposable income of residents. In 2016, annual electricity consumption per capita in NWT was 8 MWh, ranking second-last in per capita electricity consumption at 46% less than the national average. NWT has the second-highest electricity rates in the country at 30.9 cents per kilowatt-hour.

Construction

Driven by the mineral industry as well as commercial, residential and infrastructure development, the construction industry is third largest sector in the NWT after mining and public administration. The GDP associated with the sector totals about $400 million annually. The outlook for the industry is dependent, in part, on the timing of infrastructure investments, remediation activities at Giant Mine, the potential mine development including Nechalacho, NICO, Pine Point, Prairie Creek, and TerraX (the Yellowknife City Gold Project).

Film

NWT is becoming more popular as a filming location, as evidenced by productions such as Ice Road Truckers and Arctic Air. The NWT Film Rebate Program provides incentives to productions filming on location in the NWT. Experienced television and film professionals are available for visiting production companies. Last year, CanNor and GNWT announced $250,000 in funding (two-year project) to enable the NWT Film Commission (NWT Film) to attract film productions to the NWT. In 2014, the GNWT published the NWT Film Strategy and Action Plan which focused on five key strategic objectives: strengthen government/industry roles and partnerships; enhance funding and

22 Market Snapshot: Overcoming the challenges of powering Canada’s off-grid communities, Release date: 2018-10-03, https://www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/snpsht/2018/10-01-1cndffgrdcmmnts-eng.html

City of Yellowknife –Economic Development Strategy Page 73 financial support; create training opportunities; assist in building infrastructure, below-the-line crews and support services; and develop efficient and effective marketing and communications.

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Appendix V: Summary of the Research Results

The chapter summarizes the results of the survey with businesses and, where the questions are the similar, interviews with key informants. Selected findings from the roundtable session with the Mayor’s Task Force members are also include.

V.1. Economic Outlook

• Largely as a result of the anticipated mine closures, most of the businesses surveyed and key informants interviewed are very concerned about the economic outlook for Yellowknife.

Almost two-thirds (65%) of the 176 businesses who expressed an opinion view the economic outlook for Yellowknife to be negative over the next five years. Only 22% of the businesses view the economic outlook for Yellowknife to be positive over next 5 years, including only 3% who view it as very positive. Some of those who view the next five years as positive noted they anticipate the medium term (e.g. 5 to 10 years out) outlook to be negative, expecting that the impact of the mine closures will not be felt in the next five years.

For the next five years, do you think the overall economic outlook for Yellowknife is positive or negative? (N=176)

Very negative 18%

Somewhat negative 47%

Neither positive nor negative 14%

Somewhat positive 18%

Very positive 3%

(Note that 19 of the 195 surveyed business were not sure/don’t know or did not provide an answer)

The survey results understate the level of pessimism to the extent that the medium and larger employers tend to hold a more negative view regarding the economic outlook than do small employers. For example, of the medium-sized and larger employers, 75% perceive the outlook to be negative (only 7% perceive it to be positive) as compared to 63% of the small employers who perceive the outlook to be negative (24% perceive it to be positive).

The perceived outlook also varies by sector. Those involved in healthcare tended to have the most favourable outlook regarding the future economy (although 56% still view the outlook as negative). A majority of those involved in other sectors, particularly mining, tourism, consulting, retail, and construction view the outlook to be negative.

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The 114 surveyed businesses who view the economic outlook as negative over the next 5 years were asked to identify why that is. As indicated below, 93% of these businesses attributed the negative outlook to the anticipated downturn in the mining sector.

Key Factors of a Negative Economic Outlook in the Next 5 Years

Question: Of those who view the economic outlook for Yellowknife as negative, why is that?

(of those who view the economic outlook for Yellowknife as negative) Why is that? # % Number of Business Viewing the Outlook As Negative 114 100% Downturn of the mining sector (e.g. life cycle of northern mines ending; mines are closing and 106 93% lack of emphasis on promoting the mining industry; nothing can offset it) High cost of living (e.g. expensive housing; rising taxes; high prices) 14 12% Lack of government support and funding (e.g. lack of government support in the mining and exploration sectors will produce another economic downturn; lack of focus on growth potential 11 10% of other sectors such as tourism; lack of government support causing unemployment) Decreasing population and demand 6 5% Regulation and land claim issues 4 4% High business operating costs 4 4% Lack of diversification of economy 4 4% Other (e.g. government interference in major resource development projects; downtown core 5 4% issues; climate change)

Some of the other factors that were identified related to issues that impact on the competitiveness of the region (e.g. high costs of living and business operating costs, regulatory issues, delays in resolving land claims) and a lack of government support and funding to address on-going issues.

Similarly, the 38 surveyed businesses who view the economic outlook as positive over the next 5 years were asked to identify why that is. As indicated below, the most common reasons were: confidence that the government recognizes the issue and will take action to promote development, diamond mines will continue to be active beyond the five year period and new mines may be developed, and remediation activities (particularly related to the Giant Mine) will be an important economic driver over the next five years. Others expect that the economy will benefit from the further development of other sectors (e.g. tourism) and revitalization of the downtown area.

Key Factors of a Positive Economic Outlook in the Next 5 Years

Question: Of those who view the economic outlook for Yellowknife as positive, why is that?

(Of those who view the economic outlook for Yellowknife as Positive) Why is that? # % Number of Business Viewing the Outlook As Positive 38 100% Government support (e.g. Government is increasing spending; Government is providing support 13 34% to increase employment; Investment in marketing and attraction) Diamond mining operations still active/may improve and new mines may be developed 11 29% Mine remediation and opportunities 10 26% Growing tourism sector 5 13% Downtown core issues will be addressed 3 8% Growth opportunities and demand growing 3 8% Diversification of economy 2 5%

Amongst the 36 key informants who were asked about the economic outlook, 24 viewed the economic outlook of Yellowknife to be negative over the next five years while only 3 viewed it as

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positive. The remaining key informants did not provide an opinion. Those who expressed a negative outlook attributed this to upcoming closures of the diamond mines, the impact that the closure will have on the broader economy, and a sense that the competitive position of Yellowknife and more generally the NWT has been eroding (e.g. other regions, including Yukon and Nunavut, have become attractive targets for exploration and investment). Those who viewed the outlook as more positive anticipated new development in some sectors (from tourism to education), and expect that the impact of closure would be offset by the extension of at least one mine and the impact of remediation activities.

• Most medium and larger businesses anticipated that the number of people that they employ will either remain unchanged or decrease over the next three to five years.

The employers were asked to indicate how many people they currently employ and estimate how many they will employ in three to five years. Most small employers anticipate that the number of people they employ will either remain unchanged (49%) or increase (34%). However, the medium and larger employers were much less optimistic with 11 of the 25 employers providing an estimate expecting the number will decrease, 7 anticipating no change and 7 anticipating an increase.

Employment Forecast Over the Next 3 to 5 Years

Question: How many people do you anticipate your organization will employ (in total) in the NWT in three to five years?

Small Firm Med Firm Large Firm Total Employment (20 or less employees) (20-80 employees) (80+ employees) Forecast # % # % # % # % Unchanged 76 49% 5 31% 2 22% 83 46% Increase 52 34% 5 31% 2 22% 59 33% Decrease 27 17% 6 38% 5 56% 38 21% Total 155 100% 16 100% 9 100% 180 100%

Overall, the aggregate employment of the 180 employers who provided estimates is expected to decrease by about 10% over the next three years, most of which relates to positions outside of the City of Yellowknife although the workers may reside in Yellowknife. When asked about the factors that will most directly impact on the number of people employed in Yellowknife specifically by their business over the next few years, the most common response related to the state of the mining industry (22%), market conditions (14%), availability of skilled workers (13%), the economic outlook at that time (12%) and the extent to which government is actively involved in promoting development.

Key Factors Impacting Future Employment

Question: What factors do you anticipate will have the greatest impact on future employment?

What factors do you anticipate will have the greatest impact on future employment? # % Number of Businesses Responding 195 100% State of mining industry (e.g. closing and contracting of the diamond mines which will decrease workload and therefore a need to decrease staff; there may be new potential 43 22% developments; uncertainty regarding when the diamond mines will close)

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What factors do you anticipate will have the greatest impact on future employment? # % Number of Businesses Responding 195 100% Size of the market for their business (e.g. demand for services; slow-growing demand; 28 14% business is not expected to grow as the population here not growing) Availability of skilled workers to fill positions (e.g. lack of skill development; low employee 26 13% retention; unable to attract staff; need to compete with government for employees) Expectations regarding future conditions 23 12% Level of government support and funding to promote economic development (e.g. how active government will be in promoting the mining industry, supporting development of 16 8% other sectors, funding infrastructure development, and attracting investment to Yellowknife and more broadly the NWT) High costs of living (e.g. high taxes; transportation costs; energy costs; expensive housing) 16 8% Access to businesses support services and capital for growth (e.g. difficult to attract 16 8% investment) High business operating costs (e.g. high cost of supplies; high labour costs) 13 7% Growth in the tourism sector (e.g. there are opportunities in the tourism sector that may 8 4% increase employment; lack of promotion in tourism) Regulations and land claim issues (e.g. on-going regulatory issues; unsettled land claims) 5 3% Other (e.g. client relationships; health; social issues such as street people) 9 5%

V.2. Advantages and Disadvantages of Being Located in Yellowknife

• The businesses identified a variety of advantages associated with being located in Yellowknife including being part of existing networks, being able to serve customers in Yellowknife, other parts of the NWT and western Nunavut, and holding competitive advantages associated with being located close to the market and having developed expertise specifically relevant to local conditions.

The advantages most commonly identified by the businesses are outlined in the table below.

Key Advantages of Being Located in Yellowknife

Question: What do you see as the advantages of being located here in Yellowknife?

What do you see as the advantages of being located here in Yellowknife? # % Number Responded 195 100% Form part of an existing network (e.g. strong customer relationships; widely 66 34% recognized business; have direct and easy access to clients) Yellowknife serve as central hub (e.g. ready access to local and regional markets; Yellowknife serve as a regional hub for products and services; established 53 27% transportation and logistics capabilities) Good economy and resource potential (e.g. economy has been strong; high disposable incomes; the potential for long-term growth in the NWT is strong assuming access to 24 12% land and resources) Located close to customers with limited direct competition 19 10% Have developed local expertise (e.g. local expertise and strong understanding of local 18 9% markets, conditions and political and economic environment) Tourism opportunities (e.g. expanding tourism market) 12 6% High quality of life (supportive community, community-oriented, family-friendly city, 7 4% sunshine, recreational opportunities). Other (e.g. beautiful location; safe; distinct cultural history; long operating history) 7 4%

• The businesses also identified a variety of disadvantages associated with being located in Yellowknife including the high costs of living and operating a business, a lack of affordable housing, difficulties in attracting skilled workers, and high transportation and shipping

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costs.

The disadvantages most commonly identified by the businesses are outlined in the table below.

Key Disadvantages of Being Located in Yellowknife

Question: What do you see as the disadvantages of being located here in Yellowknife?

What are any major disadvantages associated with being located in Yellowknife? # % Number Responded 195 100% High cost of living (e.g. particularly costs associated with housing, energy and food) 60 31% High business operating costs (e.g. high labour costs; property taxes and rents) 54 28% Access to affordable housing (e.g. high rent and occupancy costs; limited access to 35 18% housing, particularly affordable housing) Access to skilled workers (e.g. need to compete with government to hire them; labour 26 13% shortages; not enough training and education; reliance on fly in-fly out labour) High transportation and shipping costs (e.g. costs of importing and exporting) 23 12% Small market (e.g. limited demand; limited access to local suppliers) 19 10% Low population 17 9% High travel costs (e.g. cost of flights/shortage of local accommodations) 13 7% Economic development has been a low priority (e.g. limited focus on economic 13 7% development; lack of clear economic strategies; failure to implement past strategies) Social issues 8 4% Difficulties in retaining employees/high turnover rates 3 2% Regulatory issues 3 2% Other (e.g. cold weather; lack of flexibility; lack of a university; disconnected from 17 9% community life; failure to recognize the importance of and support key sectors) (*Note that the above numbers and percentages are not mutually exclusive)

V.3. Inter-relationship Between Economic Sectors

• The health of the mineral sector is viewed as having a significant impact on the economic health of most other existing and emerging economic sectors.

The businesses were first asked as to whether the economic health of their organization is significantly linked to the health of other particular economic sectors and then specifically about whether a downturn in the mineral and mining industry would have an impact on their organization. With respect to the first questions, a majority of the survey participants (72%) agreed that the economic health of their organization is significantly linked to the health of other economic sectors.

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Would you say that the economic health of your organization is significantly linked to the health of other particular economic sectors? (N=195)

Yes 72%

No 10%

Don't Know 17%

The sectors that were most commonly identified were the mining sector and government.

Other Sectors Identified As Impacting the Economic Health of Businesses

Question: Which sector or sectors have the greatest impact on your organization?

Sectors that have the greatest impact # % Number of Businesses Responding 139 100% Mining sector 80 58% Government 65 47% The economy in general 22 16% Construction 17 12% Tourism sector 15 11% Labour market 5 4% Real estate rentals and leasing 3 2% Education 7 5% Private business and manufacturing 5 4% Banking 1 1% (*Note that the above numbers and percentages are not mutually exclusive)

Most of the businesses (84%) expect that a downturn in the mineral and mining industry will have at least somewhat of an impact on their organization. On a scale 1 to 5, where 1 is no impact at all, 3 is somewhat of an impact and 5 is a major impact, the average rating was 3.6.

How much of an impact do you think that a downturn in the mineral and mining industry would have on your organization? (N=195)

1 - No impact at all 7%

2 9%

3 - Somewhat of an Impact 38%

4 13%

5 - A Major Impact 33%

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The survey results understate the potential impact of the downturn in the mineral and mining industry to the extent that the medium and larger employers tend to view the potential impact as much more significant. On a scale 1 to 5, where 1 is no impact at all, 3 is somewhat of an impact and 5 is a major impact, the average rating was 4.7 and 4.5 respectively amongst medium-sized and larger businesses. Although less significant, smaller firms also reported more than somewhat of an impact, providing an average rating of 3.4.

The average ratings also varied by sector. Not surprisingly, businesses associated with the mineral sector provided the highest average rating (4.8) regarding the impact of a downturn in the mineral and mining industry. Businesses in the construction sector (4.2) and tourism sector (4.1) also reported significant impacts. Somewhat lower ratings were provided by those in the retail trade (3.7) and consulting (3.6). Those who felt that they would be least impacted were businesses involved in healthcare (3.3) and arts, entertainment and recreation (3.1).

When asked how they would respond to a downturn in the mineral and mining sector, the businesses most commonly indicated that they would look to government for support. The most commonly identified strategies or approaches would be to lobby government to support and promote the mineral industry, help develop other sectors including tourism, support local businesses, address land claims and land-related issues, and streamline regulations. In term of how the business itself would react, the most commonly identified strategy was to lay off employees and/or relocate some of their operations outside of Yellowknife.

Strategies in Response to a Downturn in the Mineral and Mining Sector

Question: What strategies or approaches would you use to respond to a downturn in the mineral and mining sector?

What strategies or approaches would you use to respond to a downturn in the mineral # % and mining sector? Number of Businesses Responding 89 100% Lobby government to support and promote the mineral industry (e.g. support exploration and 32 36% mining development; build relationships with key players including Indigenous governments) Relocation and layoffs (e.g. downsize by reducing services, inventory, and staff; serve the 22 25% market remotely; relocate some of the operations outside of Yellowknife) Encourage government to diversify the economy/directly support our industry (e.g. support for 20 22% sectors such as agriculture and food, energy, etc.) Encourage government to support local companies 18 20% Encourage government to address land claims and other issues affecting access to land (e.g. 13 15% there needs to be a drive to settle land claims and streamline the permitting processes) Encourage government to support and promote the tourism industry 11 12% Encourage government to streamline regulations (e.g. difficult for industries to get permits and 8 9% navigate the regulatory processes) Address the high cost of operating (e.g. tax incentives) 6 7% Other (e.g. promote education and training) 6 7%

V.4. Opportunities for Development

• When asked to rate the relative priority that should be placed on promoting development of various economic sectors, the businesses identified a range of economic sectors of which new mine development, exploration and efforts to extend the life of existing mines, remediation, tourism, post-secondary education, and downtown revitalization of

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Yellowknife were, on average, rated highest.

The businesses were asked to rate the sectors on a scale of 1 to 5, where 1 is not a priority, 3 is somewhat of a priority, and 5 is a major priority. The results are summarized in the chart below.

On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on promoting: (Average Ratings, N=195)

New mine development, exploration and efforts to extend the life 4.0 of existing mines The tourism sector (i.e. building Yellowknife as a tourism 4.0 destination) Mining remediation 3.9

Revitalization of Downtown Yellowknife 3.9 Expanding access to post-secondary education/establishing a 3.8 university in Yellowknife Yellowknife as a knowledge centre for cold climate and climate 3.7 change research (e.g. cold weather testing) The arts and culture sector including Indigenous culture 3.6

Value-added manufacturing 3.2

Agriculture and Fisheries 3.2

The film sector 3.1

The relative priority placed on different opportunities varies somewhat depending on the size of the business surveyed. The medium-size and larger employers tended to place a higher priority on mine development, exploration and finding ways to extend mine life while the small and medium-size employers tended to place a higher priority on developing the tourism sector as well as the arts and culture sector.

Identified Priorities By Size of Firm

Question: On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on promoting the following?

Small Firm Med Firm Large Firm Economic sectors and opportunities (N=195) Average Rating New mine development, exploration and efforts to extend the life of 3.9 4.8 4.7 existing mines Mining remediation 3.9 4.4 4.1 The tourism sector (i.e. building Yellowknife as a tourism destination) 4.1 4.0 3.4 Expanding access to post-secondary education/establishing a 3.9 3.4 4.2 university in Yellowknife Revitalization of Downtown Yellowknife 3.9 3.3 4.0 The arts and culture sector including Indigenous culture 3.6 3.4 3.0 Yellowknife as a knowledge center for cold climate and climate change 3.8 3.1 4.2 research (e.g. cold weather testing) Agriculture and Fisheries 3.2 2.9 2.9 Value-added manufacturing 3.2 3.0 2.7

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Small Firm Med Firm Large Firm Economic sectors and opportunities (N=195) Average Rating The film sector 3.1 2.7 2.8

Not surprisingly, there is correlation between the relative priority that should be placed on various sectors and the sector associated with the business surveyed. Businesses in the mining and construction sector were those most likely to rate new mine development, exploration and efforts to extend the life of existing mines as the higher priority. Businesses in the tourism, arts, entertainment, and recreation were those most likely to rate tourism as the highest priority.

Priorities that the Government and Others Should Place on Promoting by Industry

Question: On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on promoting the following?

Arts, Health Economic sectors and Mining Construction Retail Consulting entertainment, Tourism Care opportunities (N=195) recreation Average Rating New mine development, exploration and efforts to extend the life of 4.9 4.7 3.9 4.0 3.8 3.0 3.4 existing mines Mining remediation 4.2 4.0 4.1 4.0 4.1 3.9 4.1 The tourism sector (i.e. building 3.4 3.5 4.4 4.1 4.2 4.6 4.5 Yellowknife as a tourism destination) Expanding access to post-secondary education/establishing a university 3.5 3.5 4.1 3.8 4.4 4.6 4.2 in Yellowknife Revitalization of Downtown 3.2 3.4 4.3 3.7 4.4 4.4 3.8 Yellowknife The arts and culture sector including 2.7 2.8 4.1 3.6 4.1 4.5 4.1 Indigenous culture Yellowknife as a knowledge center for cold climate and climate change 3.0 3.4 4.0 3.8 4.2 4.2 4.1 research (e.g. cold weather testing) Agriculture and Fisheries 2.7 2.9 3.4 3.0 3.5 3.4 3.4 Value-added manufacturing 2.7 3.3 3.4 3.2 3.3 3.8 3.3 The film sector 2.4 2.5 3.2 3.0 3.4 3.9 3.6

• When asked to identify what sectors represent the greatest potential for growth, key informants including those participating in the roundtable with the Mayor’s Task Force most commonly identified the mineral and the tourism sectors.

As indicated below, 72% of the key informants identified minerals and mining while 64% identified tourism.

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Sectors Representing the Greatest Potential for Growth

Question: What (other) sectors or areas of the economy offer significant potential for growth (e.g. minerals and mining, renewable energy, tourism, arts and culture, film, value-added manufacturing, urban agriculture, cold climate and climate change research, etc.)?

What sectors or areas of the economy offer significant # % potential for growth Number of Businesses Responding 36 100% Minerals and Mining Sector 26 72% Tourism Sector 23 64% Education 7 19% Construction 7 19% Climate change research/cold weather testing 5 14% Diversify the economy 4 11% Arts and crafts 4 11% Renewable energy 4 11% Aboriginal Business and Cultural centers 4 11% Fisheries 3 8% Manufacturing 3 8% Accommodation 3 8% Film 2 6% Agriculture 2 6% Real estate rentals and leasing 1 3% Healthcare 1 3%

Similarly, during the roundtable session with the Task Force, participants were asked to identify up to three opportunities or issues which they feel represent the highest priority. Of the 14 members who responded, 9 identified tourism, 8 identified the mineral industry, 4 identified the development of a polytechnic or university in Yellowknife, 4 identified development of a museum or exhibit that would showcase responsible mining, 3 identified further development of cold- weather testing, 3 identified downtown revitalization, and 2 identified further leveraging Yellowknife as a service centre for the NWT (particularly as a centre for healthcare). Other suggestions included value-added manufacturing (e.g. synthetic diamonds), leveraging community airport as an economic lever, focusing on reducing energy costs and the cost of living, further development of the knowledge economy, and focusing on self-sustainability through expansion of existing industries.

V.5. Constraints to Development

• A wide variety of factors were commonly identified by businesses as constraining economic development in Yellowknife.

The businesses were asked to rate a series of factors on a scale 1 to 5 (where 1 is not at all, 3 is somewhat, and 5 is to a great extent) that may constrain the economic development in Yellowknife. The highest rate factors included the cost of living (4.2), cost of business operations (4.1), access to affordable housing (4.1), access to skilled workers (3.9), and development and permitting issues (3.8), regulatory issues (3.7), and the energy infrastructure (3.7).

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On a scale of 1 to 5, where is 1 is not at all, 3 is somewhat, and 5 is to a great extent, to what extent do you believe the following factors are constraining economic development in Yellowknife? (N=195)

Cost of living (e.g. housing, food, energy) 4.2 Cost of business operations 4.1 Access to affordable housing 4.1 Access to skilled workers 3.9 Development processes and permitting issues 3.8 Other regulatory issues 3.7 Energy infrastructure 3.7 Access to markets 3.4 Land claims 3.3 Access to land within the city limits 3.3 Access to capital 3.2 Transportation 3.2 Access to business support 3.1 Communication infrastructure 3.1

The relative importance of the factors varies by sector. For example, businesses associated with the mining sectors most commonly identified development processes, permitting issues, other regulatory issues, costs, land claims and access to skilled workers as key constraints. Somewhat similarly, the construction sector most commonly identified costs, development processes, permitting issues and other regulatory issues, access to affordable housing, and access to skilled workers as major constraints. Businesses from the tourism sector identified cost of living and business operations, development processes and permitting issues, access to affordable housing, and access to skilled workers as the major constraints.

Average Rating on Constraints to Economic Development by Industry

Question: On a scale of 1 to 5, where is 1 is not at all, 3 is somewhat, and 5 is to a great extent, to what extent do you believe the following factors are constraining economic development in Yellowknife?

Arts, Health Mining Construction Retail Consulting entertainment, Tourism Constraint Factors Care recreation Average Rating Cost of living (e.g. housing, 3.73 4.21 4.32 3.72 4.41 4.50 4.00 food, energy) Cost of business operations 4.00 3.96 4.68 3.79 4.00 4.44 3.82 Access to affordable housing 3.56 3.79 4.32 3.74 4.35 4.19 3.82 Access to skilled workers 3.76 3.75 4.04 3.63 4.24 3.67 3.76 Development processes and 4.30 3.93 4.17 3.44 3.94 3.80 3.94 permitting issues Other regulatory issues 4.08 3.88 4.00 3.39 3.88 3.71 3.69 Energy infrastructure 3.52 3.57 3.83 3.72 3.50 3.67 3.18 Access to markets 3.24 3.15 3.46 3.46 3.44 3.33 2.88

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Arts, Health Mining Construction Retail Consulting entertainment, Tourism Constraint Factors Care recreation Average Rating Land claims 3.76 3.89 3.04 3.11 3.19 2.79 2.94 Access to land within the city 2.60 3.44 3.32 2.95 3.50 3.44 3.18 limits Access to capital 3.36 2.56 3.40 2.97 3.56 3.33 3.12 Transportation 2.92 3.04 3.32 3.22 2.75 3.38 2.65 Communication infrastructure 2.64 2.79 3.36 3.18 3.13 3.19 2.59 Access to business support 3.08 2.89 3.36 2.58 3.38 3.25 2.53

The relative importance of the factors varied somewhat by size of employer. As shown below, larger firms were most likely to rate access to skilled workers, regulatory issues and energy as key constraints while medium-sized firms were more likely to identify development processes and permitting issues as well as access to business support than were other sized businesses.

Average Rating on Constraints to Economic Development by Firm Size

Question: On a scale of 1 to 5, where is 1 is not at all, 3 is somewhat, and 5 is to a great extent, to what extent do you believe the following factors are constraining economic development in Yellowknife?

Small Firm Med Firm Large Firm Constraint Factors Average Rating Cost of living (e.g. housing, food, energy) 4.18 4.35 4.00 Cost of business operations 4.11 4.60 3.90 Access to affordable housing 4.07 4.20 3.80 Access to skilled workers 3.86 3.95 4.30 Development processes and permitting issues 3.74 4.40 4.00 Other regulatory issues 3.64 4.20 4.20 Energy infrastructure 3.64 3.80 3.90 Access to markets 3.40 3.55 3.30 Land claims 3.29 3.60 3.50 Access to land within the city limits 3.29 3.15 3.20 Access to capital 3.17 3.35 3.00 Transportation 3.14 3.30 3.10 Communication infrastructure 3.13 2.95 3.20 Access to business support 3.02 3.40 2.90

• When asked about factors that constrain economic development in Yellowknife, the key informants most commonly identified regulations, high costs, transportation, and access to land.

Factors that Constrain the Economic Development in Yellowknife

Question: What (other) factors serve as the major constraints to economic growth (e.g., regulations; location; access to business support, capital, skilled workers, and markets; communications, transportation and energy infrastructure; access to resources, land and other key inputs, etc.)?

What (other) factors serve as the major constraints to economic growth? # % Number of Businesses Responding 36 100% Regulations (e.g. regulatory processes discourage investment; overlapping regulatory regimes are very difficult to navigate; a wide variety of topic were identified ranging from mineral 12 33% exploration to development permits, water permits, access to land, fire regulations, parting requirement, etc.) High-cost structure (e.g. high cost of power, wage costs, cost of utilities, high taxes) 10 28%

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What (other) factors serve as the major constraints to economic growth? # % Number of Businesses Responding 36 100% Transportation (e.g. air transportation, need for all season roads) 8 22% Access to skilled labour/need to expand access to post-secondary education and other 7 19% training) Access to land (e.g. Space constraints for campus and businesses; lack of available land for 5 14% development, need to settle land claims) Access to investment, capital, and other resources 4 11% Access to markets 4 11% Energy infrastructure (e.g. need to expand access to renewable resources and reduce costs) 3 8% Lack of support services for business development 2 6% Other 6 16%

V.6. Recommended Priorities

• When asked about areas on which government and others should focus when promoting economic development, the businesses most commonly identified as high priorities the development of renewable energy, providing assistance to Yellowknife in capturing more of the benefits associated with resource development, working to address social issues (e.g. homelessness), implementing investment attraction initiatives and incentive programs, addressing regulatory issues, and expanding access to support for business startup and businesses development.

On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, other areas that were on average rates as more than somewhat of a priority were increasing access to capital, increase access to land within the city limits, and working to attracting workers from other parts of Canada.

On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on the following types of initiatives? (N=195)

Renewable energy 4.2

Working to increase the percent of workers (e.g. mine employees) 4.0 who reside in Yellowknife

Initiatives to address social issues (e.g. homelessness) 3.9

Implementing investment attraction initiatives/business 3.9 incentives

Addressing regulatory issues 3.8

Expanding access to support for business startup and small 3.8 businesses development

Increasing access to capital 3.5

Access to land within the city limits 3.5

Attracting workers from other parts of Canada 3.4

Attracting workers from outside of Canada 2.8

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The ratings were relatively consistent across the various sectors. Addressing regulatory issues tended to be rated as a higher priority by businesses in the mining, construction, retail and tourism sectors but were identified as at least somewhat of a priority across all the sectors. Addressing social issues tended to be rated as a higher priority by businesses in the healthcare, culture and recreation, retail and tourism sectors.

Average Rating on Economic Development Initiatives by Industry

Question: On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on the following types of initiatives?

Arts, Constru Health Mining Retail Consulting entertainment, Tourism Key challenges (N=195) ction Care recreation Average Rating Renewable energy 3.8 4.0 4.5 4.1 4.6 4.4 4.1 Addressing regulatory issues 4.1 4.0 3.9 3.5 3.6 3.1 3.9 Initiatives to address social issues 3.2 3.0 4.3 3.8 4.4 4.4 4.2 (e.g. homelessness) Implementing investment attraction initiatives/business 3.8 3.9 4.0 3.7 3.9 4.1 3.8 incentives Working to increase the percentage of workers (e.g. mine 4.0 4.1 4.5 4.1 4.2 3.9 4.0 employees) who reside in Yellowknife Attracting workers from other 3.4 3.4 3.8 3.4 3.8 3.7 3.8 parts of Canada Attracting workers from outside of 2.3 2.4 3.4 2.7 3.1 3.4 3.1 Canada Access to land within the city 3.0 3.8 3.6 3.5 3.8 3.7 4.1 limits Expanding access to support for business startup and small 3.3 3.8 4.1 3.5 4.3 4.0 3.9 businesses development Increasing access to capital 3.7 3.3 3.6 3.3 3.8 3.9 3.5

Similarly, the ratings were relatively consistent across small, medium and larger employers. The most significant difference is that the priority placed on addressing regulatory issues tended to be increasing with the size of the employer.

Average Rating on Economic Development Initiatives by Firm Size

Question: On a scale of 1 to 5, where 1 is no priority at all, 3 is some priority, and 5 is a major priority, how much of a priority do you think government and others should place on the following types of initiatives?

Key Challenges (N=195) Small Firm Med Firm Large Firm Renewable energy 4.2 4.3 4.3 Addressing regulatory issues 3.8 4.3 4.5 Initiatives to address social issues (e.g. homelessness) 3.9 3.8 3.5 Implementing investment attraction initiatives/business 3.9 3.6 4.1 incentives Working to increase the percentage of workers (e.g. mine 3.9 4.2 3.9 employees) who reside in Yellowknife Attracting workers from other parts of Canada 3.4 3.4 3.8 Attracting workers from outside of Canada 2.7 2.9 3.1 Access to land within the city limits 3.5 3.3 3.7

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Key Challenges (N=195) Small Firm Med Firm Large Firm Expanding access to support for business startup and small 3.8 3.5 3.8 businesses development Increasing access to capital 3.5 3.6 3.6

• When asked about the most important actions for government and others to take to promote development, given the priorities that they had previously identified, the responses provided by businesses most commonly related to actions that promote further development of the mineral industry and businesses in general, address issues related to regulations and land claims, and work to revitalize the downtown area.

The following table summarizes responses provided by both the businesses and key informants. Both groups most commonly identified actions that promote further development of the mineral industry as the most important actions.

Responses of Businesses and Key Informants Regarding Key Actions

Question: Given the priorities that you’ve identified, what do you see as the most important actions for government and others to take to promote development?

Key Most important actions for government and others to take to promote Businesses Informants development # % # % Number of Respondents 111 100% 36 100% Promote the mineral industry (e.g. streamline regulations; promote the industry and work to attract investment in mining exploration and new mine 26 23% 13 36% development; formally recognize the importance of the mineral industry to Yellowknife) Promote business development (e.g. listen to and support existing businesses; promote business development in areas where Yellowknife has a strategic advantage; support the development of resources, advisory services, 24 22% 8 22% and market development assistance that accelerate the development of local businesses; implement the strategies that have been developed) Address regulatory and land claims issues (e.g. reduce regulatory overlap; improve, simplify, and shorten the regulatory process; need to settle land 22 20% 4 11% claims more efficiently) Revitalize the downtown area (e.g. build the critical mass, address social issues such as homelessness and addiction, improve the attractiveness of the 19 17% 6 17% downtown areas, etc.) Market Yellowknife to potential investors, businesses, tourists, and talent (e.g. create strategies to attract investment and people to move to the 10 9% 8 22% north/work to make Yellowknife a more attractive target for investment, do a better job of packaging and promoting Yellowknife; increase access to data) Promote development of energy infrastructure (e.g. that will reduce energy 7 6% 3 9% costs while increasing to clean and reliable energy) Support tourism (encourage the development of additional tourism products, 7 6% 10 28% build the shoulder seasons, increases in accommodation capacity) Increase access to affordable housing 5 5% 2 6% Work to reduce the cost of living (e.g. work to reduce taxes as well as energy, 5 5% 8 22% food and housing costs) Improve transportation infrastructure (all-season roads, airport) 3 3% 2 5% Promote development of a post-secondary institution/polytechnic 3 3% 4 11% Other (e.g. increase access to land, labour and capital) 8 7% 1 3%

• When asked about the most important actions for government and others to take to promote development, roundtable participants provided a range of responses of which

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improving the regulatory environment, opening up lands for development, investment attraction, promoting the mineral and tourism sectors, working to reduce the costs of living and increase access to skilled labour, and encouraging investment in infrastructure were identified most frequently.

The recommended priorities are summarized in the table below.

Priorities Recommended by Roundtable Participants

Question: What are the priority actions that the City should take to pursue these opportunities and address these issues?

Recommended Priorities Number Number of Participants Responding 18 Streamline the regulatory environment (e.g. streamline processes with accountable timelines, coordinate regulations across levels of government, develop a road map, remove permitting and 7 regulation redundancies, push decision making to front line, make greater use of online resources such as online business license sign-up and BizPaL) Open up additional lands for development (lobby hard to gain control of the land within its boundaries, aggressively implement the community plan, use the land they have in inventory to 7 stimulate investment, improve infrastructure, development waterfront, open up the hills) Implement investment attraction initiative (develop the needed data, site location information, tool kits, investment documents and marketing collateral: aggressively market the community; establish 5 a visible presence at key events) Strongly advocate for the mineral industry (letter of support, message that Yellowknife supports the mineral sector, work to better leverage the mineral sector to support the development of other sectors, support projects that have a social-economic benefit during the MVLWB and MVEIRB 5 processes, lobby for city representative(s) to both MVLWB and MVEIRB; be seen at and participate in Geoscience Forum and Roundpp, support the offering of mineral-related programs at the new polytechnic, encourage infrastructure development) Support further development of the tourism industry (through working to attract investment and further developing infrastructure, introducing bylaws regarding short-term rental, actively 5 supporting a mining and transportation museum similar to Whitehorse and partnering with other cities who have significant geotourism business, get the DMO off the ground) Address labour shortages (e.g. support development of the resident workforce, increase access to education and training, encourage development of a university, work to attract needed skilled 5 workers to the community) Work to reduce the costs of living (e.g. food, energy, housing costs) 5 Encourage the development of infrastructure (municipal water and sewage, all-season roads, 5 renewable energy, and hydropower transmission from the south) Offer a pathfinding service to assess businesses in navigating the complex regulatory environment (ease regulatory confusion with city and GNWT; pursue a single-window approach with shared 4 staff) Work to increase capacity and reduce the cost of energy (advocate for alternative energy, promote hydropower transmission from the south, work with Arctic Energy to reintroduce solar panel 4 grants, work with the public utility board to allow annual net metering credit rollovers) Be a leader in promoting economic development (be a leader, start the process by developing and sharing a plan, advocate for change, create awareness of opportunities, advocate on behalf of key 4 sectors and potential developments) Promote Yellowknife as a place to investment, work, and visit (create a champion to promote the 3 city, develop a plan to attract tourists, capital and skilled workers) Support the development of a business incubator (shared and affordable space for new and developing businesses; include the exploration industry within any plans to supporting a business 3 incubator in Yellowknife) Offer development incentives to stimulate investment 2 Ensure the City applies an economic lens to new policies, programs, strategies, developments, land 2 swaps, and every other level of decision making

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Recommended Priorities Number Number of Participants Responding 18 Increase access to data (e.g. collect and analyze statistics on sector contributions to the economy, 2 use these to advocate for sectors, do a retail leakage study) Support establishment of a university (e.g. through advocacy, location incentives, land assembly 2 and taxation options, and working to attract national and international students) Assist the GNWT and key economic sectors in implementing already developed strategies 2 Work to further diversify the economy/reduce dependence on one sector 2

Other suggestions included positioning Yellowknife as a community that is open for business, working to improve the downtown core (working with landlords to promote the properties, improve occupancy rates, and reduce occupancy costs), finding ways to better support northern residents coming to Yellowknife for healthcare (e.g. facilitate access to short term housing, transportation, shopping, and food), increase awareness of business opportunities in the city, work with Indigenous government, the GNWT, industry and others to speak with a unified voice, where possible align development activities with the GNWT’s 22 priorities, and ensure that City Council is on board and formally endorses the economic development strategy.

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Appendix VI: Overview of the 2014-2019 Economic Development Strategy

The following table outlines the four goals and the 38 actions that were identified from the City’s 2014-2019 Economic Development Strategy.

Yellowknife Yellowknife is Yellowknife is Yellowknife is has a Diverse a dynamic, a talented and # Actions from the 2014-2019 Economic Development Strategy a city open for Priority Business growing educated business Community community community To support business and employment growth, implement an annual business visitation program consisting of one-on-one interviews with business owners to gain information 1 ✓ ✓ ✓ Annually regarding growth plans, succession plans and requirements from the City to assist in meeting growth plans. Work with the Northern Frontier Visitors Association to promote tourism and customer 2 ✓ Annually service training for front line tourism workers. To enhance the vibrancy of the Downtown and promote art and culture initiatives in Yellowknife, collaborate with property owners to promote vacant property as an arts 3 ✓ Ongoing and culture venue to temporarily transform properties into arts and culture programming space. To enhance the City’s Downtown revitalization programs, participate (where requested) 4 on committees and action groups dealing with Downtown homelessness and social ✓ Ongoing issues. Work with/support Aurora College, GNWT and colleges in southern regions of Canada 5 and overseas to develop exchange programs, encouraging youth to experience and form ✓ ✓ Ongoing a bond with Canada’s North.

Open discussions with Aurora College on the opportunities to expand their program 6 delivery in areas such as engineering and mining; arts, culture and entertainment; and ✓ ✓ Ongoing environmental and green industries to meet Yellowknife’s business diversification goals.

To increase business growth and development, promote land sales to prospective 7 developers in partnership with Planning and Development and market these initiatives ✓ Ongoing through CED Department publications and advertising.

Participate in the review of the Business License By-law by engaging with business 8 ✓ ✓ 2014 during the By-law review to help address issues impacting business development.

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Yellowknife Yellowknife is Yellowknife is Yellowknife is has a Diverse a dynamic, a talented and # Actions from the 2014-2019 Economic Development Strategy a city open for Priority Business growing educated business Community community community

Meet with the Business Development Investment Corporation, Chamber of Commerce (Yellowknife and NWT) and CDÉTNO every quarter to extend and enhance support 9 ✓ ✓ 2014 services to businesses in Yellowknife (one-on-one business training in market research, customer service, business planning, etc.). Research municipal business incubation programs to determine if one such program would provide value to businesses in Yellowknife and assist the City in developing new 10 ✓ ✓ 2014 businesses and diversifying the economy. Provide a recommendation to Council and Administration regarding the provision of incubation services based on this research. Update the ‘business’ and ‘visitor’ sections of the City of Yellowknife’s website to improve access to information for existing businesses, business start-ups and potential 11 investors. Information provided might include information on development incentives, ✓ 2014 prioritized business opportunities and tools for small business as well as information for visitors and people moving to Yellowknife. Research business incentives and how these incentives could be implemented in 12 conjunction with the City’s Development Incentive Program By-law to increase adoption ✓ 2014 of the incentives program and meet business development targets. Ensure the community profile is updated every two years and that it reflects the current 13 marketing and branding efforts of the City to maximize Yellowknife’s business attraction ✓ 2014 potential Undertake a tourism strategy that addresses the relationship between the City of Yellowknife, NWT Tourism and the Northern Frontier Visitors Association and positions 14 the city to attract ✓ 2014 tourists and sustain tourism investment (e.g. cultural tourism, sports tourism, lake- based tourism). Work with partners and existing convention feasibility studies in order to identify and address infrastructure gaps and target conventions that represent a good ‘match’ for 15 ✓ 2014 Yellowknife including northern mining and resource extraction, climate change and Circumpolar conferences.

Work with the Yellowknife Chamber of Commerce to develop and promote ‘shop local’ 16 initiatives through programs such as local currency projects, coordinated, seasonal sales ✓ 2014 across all merchants in Yellowknife and retail coupons included with tour packages.

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Yellowknife Yellowknife is Yellowknife is Yellowknife is has a Diverse a dynamic, a talented and # Actions from the 2014-2019 Economic Development Strategy a city open for Priority Business growing educated business Community community community Extend the ‘Our Yellowknife’ campaign to include local businesses and business 17 ✓ 2014 operators to raise local awareness of the businesses in Yellowknife. Expand and coordinate activities with GNWT to leverage the City’s ‘Our Yellowknife’ and 18 the GNWT’s ‘Come Make your Mark’ programs to become a national storytelling and ✓ 2014 marketing exercise to assist in the attraction of new residents to Yellowknife. Annually meet with mining companies to gain an understanding of the needs of mining 19 ✓ 2014 sector workers to increase the number of workers living in Yellowknife. Launch a residency advertising campaign targeted at mining sector workers (in-flight 20 ✓ 2014 magazines and corporate communications). Communicate with the GNWT and relevant federal departments to clarify recruitment 21 plans and new job openings in Yellowknife, especially through devolution, to increase ✓ ✓ 2014 Yellowknife’s population. Include questions related to retirement plans in the next Citizen Survey to understand 22 ✓ 2014 the intentions and needs of those in and approaching retirement. Promote services and programs for the City’s retired population through the City’s 23 communications tactics to increase awareness of programs and services and increase ✓ 2014 the number of retirees choosing to remain in Yellowknife. To support the Council approved 50th Street revitalization goals and spur business 24 development in the Downtown area, partner with the Planning and Development ✓ 2014 Department to engage in the 50th Street Revitalization project. Participate in the Community Energy Plan renewal process for the purpose of aligning Economic Development Goals and Community Energy Goals, identifying funding 25 ✓ 2014-15 opportunities and targeting renewable energy companies in investment attraction efforts. Participate in the review of the Zoning By-law pertaining to home-based business to 26 ✓ ✓ ✓ 2015 help promote business diversification opportunities for small businesses start-ups.

Undertake a comprehensive mining sector supply chain analysis to identify short and long term business development and attraction opportunities for Yellowknife. Create a 27 ✓ 2015 promotional brochure to market Yellowknife’s business opportunities in the mining sector.

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Yellowknife Yellowknife is Yellowknife is Yellowknife is has a Diverse a dynamic, a talented and # Actions from the 2014-2019 Economic Development Strategy a city open for Priority Business growing educated business Community community community Together with CDÉTNO and others, launch an ambassador program for Yellowknife- 28 based executives to promote Yellowknife while on business travel to increase the ✓ 2015 awareness of the business opportunities in Yellowknife. Support CDÉTNO and other partner agencies in their overseas trade missions and 29 investment attraction efforts through the provision of promotional materials and ✓ 2015 information about investing in Yellowknife. Continue working with NWTT to promote Yellowknife in key domestic and international 30 ✓ ✓ 2015 markets to increase visitation from these key markets. Conduct a retail leakage study that informs the gaps in the current retail environment and identifies the range of investment opportunities for Yellowknife. Create a 31 ✓ 2015 promotional brochure to market Yellowknife’s business opportunities in the retail sector. To increase residency and the potential for new business start-ups, launch a ‘move 32 home’ program targeting those that left Yellowknife for education and employment in ✓ ✓ 2015 southern Canada. With the GNWT and the NWT/NU Chamber of Mines, expand marketing efforts to 33 include programs that provide online living and family support services to fly-in/fly-out ✓ 2015 workers with the goal of increasing the number of workers living in Yellowknife. To meet Downtown revitalization goals and objectives, work with the GNWT and Aurora 34 ✓ 2015 College to discuss opportunities for an expanded presence in downtown Yellowknife. Research best practices in sister city programs for economic development to determine 35 ✓ ✓ 2016 if a sister city program would be valuable to Yellowknife. In conjunction with CDÉTNO and the Tourism Strategy, create a way-finding initiative 36 with internal City Departments, the Yellowknife Chamber of Commerce and other ✓ 2016 partners to direct visitors to shopping and dining experiences in Yellowknife. In line with Council Goals and Objectives, support other City Departments with the 37 completion of a master plan for heritage, arts and culture to identify business ✓ ✓ 2016 opportunities in the sector and improve Yellowknife’s ability to attract new residents. Open discussions with other post-secondary institutions to consider opening a campus 38 in Yellowknife to provide increased post-secondary training programs for youth and ✓ 2016 prepare them for future work opportunities.

MEMORANDUM TO COMMITTEE (For Information Only)

COMMITTEE: Governance and Priorities

DATE: March 15, 2021

DEPARTMENT: Economic Development & Strategy

ISSUE: Minutes of the Mayor’s Task Force on Economic Development meeting of March 4, 2021.

BACKGROUND: Attached for the information of the Committee are the minutes of the Mayor’s Task Force on Economic Development meeting of March 4, 2021.

ATTACHMENTS: Mayor’s Task Force on Economic Development MTFED Committee Minutes, March 4, 2021 (DM# 642704).

Prepared: March 10, 2021 /BP

GOVERNANCE AND PRIORITIES COMMITTEE Page 1 March 15, 2021 DM# 586808 v4

Mayor’s Task Force on Economic Development March 4, 2021 at 12:00 p.m. Via Video/Teleconference MINUTES

Minutes of a meeting held on Thursday, March 4, 2021 at 12:00 p.m. The following Committee members called into the meeting: Present: Mayor R. Alty, ex‐officio, Chair, F. Afane, D. Alexander, M. Brajer, D. Connelly, D. L. Demarcke, P. Gruner, P. Houweling, K. Ruptash, K. Thomas, and R. Warburton.

The following additional individuals were in attendance: K. Johnson, and J. Snaggs.

The following members of Administration were in attendance: K. Thistle, J. Farmer, and B. Poeschek.

Call to Order 1. Chair R. Alty called the meeting to order at 12:05 p.m.

Opening Statement 2. Chair R. Alty read the Opening Statement.

Approval of Agenda 3. Committee approved the Agenda as presented. MAYOR’S TASK FORCE ON ECONOMIC DEVELOPMENT MINUTES March 4, 2021

Disclosure of Pecuniary Interest 4. There were no disclosures of pecuniary interest.

Discussion of Implementation Plan for 2020‐2024 City of Yellowknife Economic Development Strategy 5. Chair R. Alty provided background on the economic impacts of COVID‐19 for the Visitor’s Centre, as well as a high‐level review of the Implementation Plan for the 2020‐2024 City of Yellowknife Economic Development Strategy (the “Implementation Plan”).

6. Discussion amongst Committee took place with a focus on providing feedback for consideration regarding the proposed Priority Actions and Priority Levels within the Implementation Plan. Committee expressed general approval of the Implementation Plan as presented.

7. Administration provided background in response to specific inquiries from Committee concerning the location of the Visitor’s Centre; transferring untenured Commissioner’s Land; establishing a business accelerator/incubator; completing the Zoning By‐law review; developing investment, worker and resident Attraction Strategies; and implementing the Agriculture Strategy.

8. P. Gruner left the meeting at 12:26 p.m.

9. Chair R. Alty clarified the timeline for submission of the Implementation Plan to Council for approval, and next steps.

Action Item: Administration will distribute the links to the Agenda and the webcast for the Governance and Priorities Committee (“GPC”) meeting where the Implementation Plan will be presented, and will invite Committee members who wish to speak at the GPC meeting to contact the Office of the City Clerk.

Next Meeting 10. The next meeting will be scheduled in approximately six months’ time, likely in early September, 2021 at 12:00 p.m. via video/teleconference.

Action Item: Administration will circulate a calendar invitation for the next Mayor’s Task Force on Economic Development meeting once direction is received from the Chair.

Adjournment 11. The meeting was adjourned at 12:35 p.m.

Prepared: March 8, 2021 /BP

DM#642704 Page 2

MEMORANDUM TO COMMITTEE

COMMITTEE: Governance and Priorities

DATE: March 15, 2021

DEPARTMENT: Administration

ISSUE: Whether to appoint members to serve on the 2021 City of Yellowknife Board of Revision.

RECOMMENDATION: That Council appoint members to the 2021 City of Yellowknife Board of Revision, and that an honorarium of $250 per day be paid to all community board members.

BACKGROUND: In accordance with the Property Assessment and Taxation Act, provisions are made for assessment complaints and appeals to be heard. Under Section 30(2) of the Act, City Council is authorized and responsible for the appointment of the members of the municipal Board of Revision.

The 2021 Board of Revision is scheduled to hear complaints on April 8, 2021.

The City of Yellowknife (City) has advertised for members to sit on the Board of Revision in the Capital Update and the City’s website and social media sites.

COUNCIL POLICY / RESOLUTION OR GOAL: Council Goal #2 Delivering efficient and accountable government.

Council Goal #3 Ensuring a high quality of life for all, including future generations.

Motion #0285‐04 That the City amend its Appointments to Municipal Boards and Committees Policy by adding the following under the Policy heading: 5. Appointments to administrative tribunals (i.e. the Development Appeal Board and Board of Revision) should be based on merit, experience and expertise, rather than representation of a specific interest or organization.

GOVERNANCE AND PRIORITIES COMMITTEE Page 1 March 15, 2021 DM#642550‐v1 Advertisements for vacant positions should note the nature of the service and the appointment qualifications.

APPLICABLE LEGISLATION, BY‐LAWS, STUDIES, PLANS: Property Assessment and Taxation Act.

CONSIDERATIONS: Legislation Pursuant to Section 30 of the Property Assessment and Taxation Act, the minimum number of members that Council may appoint to the Board of Revision is three (3). Section 31 states that a member of the Municipal Board of Revision holds office for not more than one year and that a person may be reappointed in subsequent years.

Consistency Historically, Council has appointed one (1) member of Council and four (4) members of the public to the Board. A person appointed to a Municipal Board of Revision holds office for not more than one year.

In assigning Council Member portfolios, Councillor Konge was named as the City’s representative on the Board of Revision.

Procedural Considerations City Council establishes the honoraria which would be provided for the performance of the duties of the Board chairperson and the community members of the Board of Revision. The Honorarium for 2020 was $250 per day for community members. The Chairperson is selected by the Members of the Board of Revision.

ALTERNATIVES TO RECOMMENDATION: No viable alternative has been identified.

RATIONALE: A delay in appointing members to the Board of Revision will delay the hearing dates. The certified assessment roll (Second Revision) cannot be finalized until the Board of Revision has heard all appeals and rendered its decisions. If there is a substantial delay in finalizing the Second Revision, tax bills will be delayed, which will have a significant impact on cash flow and debt servicing cost.

ATTACHMENTS: Expressions of interest from the candidates. Prepared: March 8, 2021; SJ/

GOVERNANCE AND PRIORITIES COMMITTEE Page 2 March 15, 2021 DM#642550‐v1