August 24, 2021 Crown and Central Agencies Committee 121
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STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES Hansard Verbatim Report No. 8 — August 24, 2021 Published under the authority of The Hon. Randy Weekes Speaker Legislative Assembly of Saskatchewan Twenty-Ninth Legislature Hansard on the Internet Hansard and other documents of the Legislative Assembly are available within hours after each sitting. https://www.legassembly.sk.ca/Calendar STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES Mr. Terry Dennis, Chair Canora-Pelly Ms. Erika Ritchie, Deputy Chair Saskatoon Nutana Mr. Steven Bonk Moosomin Mr. Daryl Harrison Cannington Mr. Terry Jenson Martensville-Warman Mr. Greg Lawrence Moose Jaw Wakamow Mr. Dana Skoropad Arm River STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES 119 August 24, 2021 [The committee met at 08:02.] Primarily focused in Saskatoon, there are currently 35 agri-tech companies at the parks with a total of nearly 450 employees. This The Chair: — Welcome, members, to the committee. My name sector has also realized steady growth over the past few years, is Terry Dennis. I’m the Chair. With us today we have Ms. with significant tenants being added in the past year. The Global Jennifer Bowes, Mr. Derek Meyers, Mr. Daryl Harrison, Mr. Institute for Food Security started occupying 33,000 square feet Terry Jenson, Mr. Tim McLeod, and Mr. Dana Skoropad. of lab, greenhouse, and office space in the Saskatoon park in late 2020. Good morning, everyone. We have another busy day ahead of us. Committee members, before you you have a copy of today’s The third-largest sector is natural resources with 28 companies meeting notice with our agenda. This morning we’ll be operating within the parks, employing approximately 1,200 considering the annual reports for Saskatchewan opportunities people. Being strategically located adjacent to Saskatchewan’s commission and the annual reports and the Provincial Auditor’s two universities, Innovation Place is also part of a much larger chapter for SaskPower. This afternoon we’ll be considering the scientific community that includes university colleges and annual reports and the Provincial Auditor chapters for SaskTel faculty members, research institutes, and other and CIC [Crown Investments Corporation of Saskatchewan]. technology-related institutions. These dynamic, collaborative communities are designed to help move ideas out of the Saskatchewan Opportunities Corporation laboratory and into the marketplace. They are also great places for local graduates to begin and grow their careers. The Chair: — We’ll now consider the 2018-19 and 2019-20 and 2020-21 annual reports for SOCO [Saskatchewan Opportunities Within the clusters of the parks, the primary target for tenants is Corporation]. Minister Morgan, please introduce your officials Saskatchewan-based private technology companies. These and make your opening comments, please. companies have the greatest opportunity for employment growth and will display the strongest ongoing loyalty to Innovation Place Hon. Mr. Morgan: — Thank you, Mr. Chair, and committee and the province. members. It’s my pleasure to be here this morning for the committee’s consideration of matters pertaining to the On March 31st, 2021, there were 144 tenants leasing space in the Saskatchewan Opportunities Corporation, or SOCO. Joining me parks. Eighty-eight per cent of these tenants are private sector here today are the following officials: Brent Sukenik, acting businesses and research organizations, all involved in the president and chief executive officer; Jackie Presnell, acting technology fields. Collectively, these companies employ vice-president of business development; and Charles Reid, senior approximately 3,700 people, of which 95 per cent have ministerial assistant in my office. completed some form of post-secondary education. The purpose of the corporation is to support and facilitate the Although having the right tenants at the parks provides the advancement and success of Saskatchewan’s technology and key foundation for collaboration, a key component of Innovation growth sectors through the development and operation of Place’s business model is to actively promote the interaction of research parks. As you are aware, SOCO operates the research tenants. Extensive programming activities at Innovation Place and technology parks in Regina and Saskatoon on land leased supports an ecosystem that fosters innovation and collaboration from the universities. Both of these facilities operate under the for tenants by facilitating forums to network, learn, and create registered trade name of Innovation Place. business opportunities. Although the number of events hosted this past year was down due to the pandemic, in normal years The core strategic basis for research and technology parks is that there are generally in excess of 170 events hosted. the physical clustering of technology organizations in a campus environment provides the opportunity for greater success through The specialized nature of buildings and infrastructure at the benefits of inter-company collaboration and networking, Innovation Place is a key component providing the appropriate sector-specific programming and education, and through technical environment required by tenants. In addition to economies of scale. Implicit in this strategy is that the larger and high-quality office buildings, tenants have access to research, more engaged the localized cluster is, the greater the benefits are. greenhouse space, growth rooms, and a variety of laboratory buildings. The buildings provide tenants with specialized The primary clusters of focus at Innovation Place include capabilities needed for sophisticated science and technology agri-tech, information communication technology, health and activities. life sciences, natural resources, and industry services and support. Of particular note is that the three largest sectors at Mechanical systems provide the air, water, and steam in qualities Innovation Place are in direct alignment with several of the and quantities that far exceed what is normally available actions and goals reflected in the Saskatchewan Growth Plan, commercially. Certain process utilities, such as high-pressure providing a significant opportunity to be leveraged. steam and chilled water, are distributed on a park-wide basis. This specialized infrastructure facilitated the addition of the Information communications technology is the largest sector in Global Institute for Food Security as a tenant during this past year both of the parks with 52 individual companies and an estimated and will be instrumental in the establishment of the Global 1,350 employees. This sector has seen the highest level of growth Agri-Food Advancement Partnership incubator at Innovation over the past few years, increasing by nine companies since Place this year. March of 2019. Another key component in SOCO’s business model is the 120 Crown and Central Agencies Committee August 24, 2021 business environment provided to tenants driven by the view that Mr. Sukenik: — Yes. As you will recall from our last meeting, each tenant has unique needs. Through regular communication that the Conexus Cultivator started in our park and has since and a collaborative approach, SOCO builds unique relationships moved to be located at their own facility. And they have been with each of their tenants. These unique business relationships quite successful. They have, just in recent documentations are built around several different factors, including but not published on their website — and this was information as of limited to how leases are structured, how products are priced, the January 1st, 2021 — they’ve worked with 52 companies. risk tolerance accepted, and general support provided. At any They’ve raised $13.4 million in private capital. They’ve created given time, approximately 30 per cent of Innovation Place 172 jobs and had $17.8 million in public funding obtained. So tenants are benefiting from flexible and supportive business they’ve been quite successful in their operation. arrangements. Ms. Bowes: — Sorry, I just missed the last . With respect to the annual reports under consideration today, SOCO generated a net income of $0.6 million in fiscal 2020-21, Mr. Sukenik: — They’ve been quite successful. down from the $3 million reported for 2019-20. The decrease in net income is due to an increase in vacancy at the parks. Overall Ms. Bowes: — Excellent, thank you. And I know I’d asked a bit vacancy at March 31st, 2021 was 14.96, up from the 11.5 per cent about this back in the spring as well, but I’m wondering if you reported at the end of the prior year. Also contributing to the can provide some information on the ComIT program and give decrease in net income is lower parking revenue as many tenant us an update on that. employees worked from home during the year. Despite the increase in vacancies, SOCO continues to be successful in Mr. Sukenik: — Okay, I’m going to pass that over to my attracting new technology opportunities to the parks. Over the colleague Jackie. past three years, 36 new technology businesses were started within the parks. Hon. Mr. Morgan: — Mr. Chair, for this question we’re joined by Jackie Presnell, who I introduced at the beginning, but this is Following a successful pivot to online programming due to the her first time appearing in committee, so I’m expecting robust pandemic, Innovation Place offered 66 business development questioning from you. and networking events during the past fiscal year, attracting 4,600 attendees. Since 1993 there have been a total of