Muskoka Economic Strategy Phase 2: Strategic Action Plan

Appendix "I"

Final Report

Submitted By: _ MALONE GIVEN g.PARSONS LTD.

In Association With:

The Centre for Spatial Economics (C4 SE)

Funding Partnership:

Canada FedNoI:

September, 2009

Muskoka Economic Strategy Phase 2: Strategic Action Plan

FINAL REPORT

Submitted To: The District Municipality of Muskoka Planning & Economic Development Department 70 Pine Street Bracebridge, Ontario PIL IN3 [email protected]

Submitted By: In Association With: Malone Given Parsons Ltd. Centre for Spatial Economics 140 Renfrew Drive, Suite 20 I IS Martin Street, Suite 203 Markham, Ontario Milton, Ontario L3R6B3 L9T 2RI Tel: (905) 513-0170 Tel: (905) 878-8292 Fax: (905) 513-0177 Fax: (905) 878-8502 [email protected] [email protected]

September, 2009

07:1643

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1.0 INTRODUCTION ] ] .] Background ] ] .2 Objectives 2 ] .3 Study Process 3 ] .4 Strategic Action Plan Organization .4

2.0 PHASE 1: BACKGROUND REPORT SUMMARY 5 2.] Key Trends 5 2.2 Muskoka's Key Economic Sectors 7 2.3 Concluding Questions 9

3.0 ISSUES AND OPPORTUNITIES ] ] 3.] Sector-Wide Issues, Gaps and Opportunities ] ] 3.2 Sector-Specific Issues, Gaps and Opportunities ]4 3.2.] Natural Resources Sector 14 3.2.2 Manufacturing & Transportation Sector 15 3.2.3 Construction, Real Estate & Business Services Sector 17 3.2.4 Trade & Personal Services Sector 17 3.2.5 Public Sector ]8 3.2.6 Second Homes Sector 19 3.2.7 Information, Communications & Telecommunications (lCT) Sector .20 3.3 Tourism Sector 21 3.3.1 Muskoka Assessment Project Summary .21 3.3.2 Tourism Issues, Gaps and Opportunities .23 3.3.3 Resorts Issues, Gaps and Opportunities 25

4.0 A VISION AND STRATEGY FOR ECONOMIC DEVELOPMENT .29 4.1 Strategic Vision 29 4.2 Economic Strategy 30 4.3 Implementation 31

5.0 STRATEGIC ACTION PLAN 33 5.1 Role for the District of Muskoka .33 5.1.1 Sector-Wide Initiatives 36 5.1.2 Sector-Specific Initiatives .40 5.1.3 Tourism Initiatives 43 5.].4 Resorts Initiatives 44 5.2 Muskoka Official Plan Policy Directions .46 5.2.1 Sector-Wide Directions 46 5.2.2 Sector-Specific Directions 47 5.2.3 Tourism Directions 47 5.2.4 Resorts Directions 48

Malone Given Parsons Ltd. * Centre for Spatial Economics MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

6.0 CONCLUSIONS 49

APPENDICES

Appendix A - Sector and Stakeholder Consultation Session Notes

Malone Given Parsons Ltd. * Centre for Spatial Economics ii EXECUTIVE SUMMARY

EXECUTIVE The Muskoka Economic Strategy project was initiated to provide a new SUMMARY analysis and set of strategic directions to better foster economic and tourism growth in Muskoka. The previous economic development strategy was completed in 1983. Since then, the economic landscape across Canada has changed considerably. The manufacturing employment base has declined and employment in services, knowledge-based and creative industries has increased. This trend holds true for the District of Muskoka as well. Muskoka requires an innovative and responsive economic strategy that is relevant to the early part of the 21 st Century, builds on its assets, and does not compromise its environment and natural beauty.

This Phase 2: Strategic Action Plan Report defines a set of actions and directions for implementation by the District to promote sustainable economic development. It has been completed concurrently with and complements the District Growth Strategy.

The timing of completion of these studies, and action on their recommendations, should assist in positioning the community to maximize the potential benefits arising from its success in attracting the G8 Summit and the 20 I0 Ontario Winter Games to Muskoka.

This Summary describes a working definition of a Vision for the District, and an Economic Strategy to attain the Vision and respond to the issues and opportunities identified through the Strategy study process. It concludes with highlights of the Strategic Action Plan for Muskoka.

Vision The District's ongoing Official Plan Review process will address the challenge of defining an overall Vision for Muskoka, but it was thought helpful if some foundation ideas could be advanced through the Economic Strategy to initiate discussion. The Vision elements presented below reflect the consultants' interpretation of what seemed to be most important to stakeholders engaged through the consultation process.

Muskoka will become a place which: ~ Seeks sustainable economic development that complements its natural setting and its caring community values;

~ Establishes the maintenance of its scenic beauty, its environmental quality and its ability to provide a healthy and fulfilling community for its citizens and visitors as its highest priorities;

~ Is renowned for its success in creativity, innovation and new business growth;

~ Welcomes residents and visitors from all points on the globe and all walks of life;

Malone Given Parsons Ltd. • Centre for Spatial Economics MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

~ Has a vibrant and diverse economy offering rewarding education, employment and entrepreneurial opportunities to all who seek them; and ~ Offers accessible housing and accommodations to its workers, residents and visitors.

Economic Strategy In consideration of this Vision for Muskoka, and the opportunities to foster regional economic development identified in the study, the recommended economic strategy for Muskoka is to:

~ Fully engage with the tourism, seasonal and retirement sectors as Muskoka's core business; ~ Leverage Muskoka's assets, brand and market position to broaden the region's economic portfolio by building new activity, innovation and diversity in the "green", creative and other industries serving local and broader markets; ~ Build technology, institutional and labour force foundations adaptable to changing economic conditions and attractive to new businesses; and, ~ Reduce the hurdles that constrain labour availability and mobility;

~ All in a context of maintaining if not enhancing Muskoka's scenic beauty and environmental quality.

Highlights of the The Strategic Action plan recommends initiatives that serve all economic Strategic Action sectors in the District, and others that target specific sectors. It also Plan identifies policy directions to consider in updating the District Official Plan. Highlights of each are summarized below:

Sector Wide Initiatives • Expand the District Economic Development Function to enhance its ability to foster collaboration and drive research; • Consolidate services in support of small business into one "Muskoka Innovation and Growth Centre", augmented by a new "Innovation Enterprise Centre" to support business innovation and growth in the "green", Information, Communications and Technology (lCT) and other sectors; • Build "Investment" and "Succession" Networks linking capital sources with business owners.

ii Malone Given Parsons Ltd. * Centre for Spatial Economics EXECUTIVE SUMMARY

Sector-Specific Initiatives • Identify the participants in Muskoka's ICT, potential "green", professional services and culture clusters, identify gaps and flag them as business opportunities; • Continue to support the Muskoka Community Network's mapping atlas initiative, ensuring it incorporates data gathered through the Muskoka Assessment Project, and expanding it to include cultural heritage and planning elements; • Facilitate discussions with area municipalities to identify product areas and locations where distinct "centres of excellence" could be created; • Continue to support and expand opportunities at and near the Muskoka Airport; • Build upon the current post-secondary education presence with more programs and facilities; • Promote public understanding of the importance of tourism and cottaging, in part by developing a "Welcome to Muskoka" hospitality messaging and skills initiative prior to and continuing past the 08 summit; • Support efforts with the province to put in place and fund a Destination Marketing and Management Organization (DMMO) for the Muskoka area; • Recognize redevelopment of waterfront resort properties using the fractional ownership model as a reasonable means of enabling capital reinvestment in resort accommodations, with appropriate controls on density and maintenance of the commercial accommodations function. Augment the current understanding of fractional project and owner characteristics and behaviours with primary research; • Explore approaches to enabling small scale (e.g., 10 to 40 suites or cabins) eco-resort development in remote areas; • Encourage if not demand that large scale resort proposals incorporate staff housing.

The Action Plan identifies performance indicators as tools for measuring the progress ofthe economic strategy.

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iv Malone Given Parsons Ltd. * Centre for Spatial Economics 1.0 INTRODUCTION

1.0 INTRODUCTION The Muskoka Economic Strategy project was initiated to provide a new analysis and set of strategic directions to better foster sustainable economic and tourism growth in Muskoka. The previous economic development strategy was completed in 1983. Since then, the economic landscape across Canada has changed considerably. The manufacturing employment base has declined while employment in services, knowledge-based and creative industries has increased. This trend holds true for the District of Muskoka as well. Muskoka requires an innovative and responsive economIc strategy that is relevant to the early part of the 2151 Century, builds on its assets, and complements its natural setting and community values.

The timing of completion of these studies, and action on their recommendations, should position the community to maximize the potential benefits arising from its success in attracting the G8 Summit and the 2010 Ontario Winter Games to Muskoka.

1.1 Background The District of Muskoka requires an Economic Strategy that: • Documents and assesses the current economic health of Muskoka; • Identifies emerging trends, opportunities and challenges; • Provides a basis for new Official Plan policy that supports economic development; and • Identifies how Muskoka can foster and support sustainable economic development that complements the natural setting of Muskoka and community values. It is anticipated that the strategy will be used as a foundation for planning and economic development initiatives by the District of Muskoka, area municipalities and other stakeholders in the District's economic future.

This Phase 2 Report addresses the development of a strategic action plan for Muskoka. It was developed to: • Incorporate consultation with focus groups for key sectors for input on the trends, opportunities and challenges affecting them; • Identify potential future directions for each sector; • Identify future growth sectors;

Malone Given Parsons Ltd. * Centre for Spatial Economics 1 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

• Recommend ways in which the District of Muskoka can foster and support economic development; and, • Recommend policy direction for the Muskoka Official Plan to support each sector.

The Phase 2 report builds on research and analysis completed in Phase 1, which generated: • An overview of Muskoka's economy; • A summary of pertinent internal and external economic trends affecting Muskoka; • Identification of gaps in and opportunities for the District's economy; • An inventory of lands currently designated for employment; and, • Identification of major sectors of Muskoka's economy, and their respective current and anticipated future trends, opportunities and challenges; and, • Answers to the first three of the questions set out below, regarding the resort accommodations component of the tourism sector (the remaining two questions are answered in this report): i. What is the value of resorts to Muskoka's economy? (visitation, taxes, spin-off effects) ii. What are future ownership and other trends and their implications? iii. What is needed to make resorts more viable and to increase the potential for resort redevelopment and expansion? IV. Do emerging trends offer opportunities for existing and new tourist commercial development in Muskoka? v. How can the Muskoka Official Plan be improved to facilitate resort redevelopment and expansion?

Highlights from the Phase 1 Report are provided in Section 2.0 below.

1.2 Objectives The objectives of Phase 2 of the Economic Strategy study are to:

• Address key issues and opportunities identified through the Phase report and in consultation with sector stakeholders; • Provide strategic directions and actions with which the District of Muskoka can foster and support economic development of its key sectors; and, • Recommend policy directions for the District Official Plan to support each sector.

2 Malone Given Parsons Ltd. * Centre for Spatial Economics 1.0 INTRODUCTION

1.3 Study Process The development of the Phase 2: Strategic Action Plan has occurred through a five-step process: 1. Sector consultations through seven workshop sessions were facilitated th th by the consulting team and District staff on February 26 , February 27 and May 21 st, 2008, with invited representatives from the following economic sectors: a. Tourism; b. Natural Resources; c. Manufacturing & Transportation; d. Construction, Real Estate and Business Services; e. Trades & Personal Services; f. Public Services; and, g. Resorts.

2. Participants were asked to identify key sector issues and the necessary actions to address them, and key opportunities and the necessary actions to realize them. Workshops concluded with confirmation of the top priorities for each sector;

3. An additional consultation session was facilitated by District of Muskoka Planning and Economic Development staff with economic th development stakeholders on April 14 , 2008. Key priorities as identified in the sector consultations were reviewed with the stakeholders. Discussion focused on the most effective role for the District and the management of the tourism economy;

4. With the output from the above sessions, the consulting team: a. Identified opportunities and strategic directions considered to most effectively foster economic development in the District of Muskoka; b. Developed a recommended scope for the District level economic development function and a tourism management model; and, c. Outlined recommended policy directions for the District Official Plan.

These were put forward in a Preliminary Directions Report, reviewed with District of Muskoka Planning and Economic Development staff, refined and presented for review by the District Planning and Economic Development Committee, then reviewed with the public and stakeholders through a Public Open house and two consultation sessions in October 2008.

5. Feedback from these sessions, from area municipal and other stakeholders and from District staff was then considered and this

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Strategic Action Plan report prepared. A number of the Directions Report's recommendations have been revised or expanded, and new directions added to respond to the comments received. Performance Indicators have been identified as measures of progress towards higher business, job and assessment yields and other targeted results.

1.4 Strategic Action The remainder of the report is divided into six primary sections, organized Plan Organization as follows:

A summary of the Phase 1: Background Report is provided in Section 2.0.

Gaps, Issues and Opportunities for the Muskoka economy are described in Section 3.0. Opportunities that the District and stakeholders should consider to facilitate economic development across all sectors, for specific sectors, and for the tourism and resorts sectors are presented, based on the Phase 1 analysis and input from stakeholder consultations.

A working Vision for the District of Muskoka and a Recommended Economic Strategy for the District are developed in Section 4.0.

The Action Plan recommended to implement the strategy is defined in Section 5.0. It recommends key functions for a District level commitment to economic development, actions tailored to sector wide and sector specific functions and for resorts, and new policy directions for the District Official Plan.

Conclusions presented in Section 6.0 summarize the Phase 2 Strategic Action Plan's responses to the key questions posed from the Phase 1: Background Report (as reproduced in Section 2.3 below).

Appendix A describes the approach taken in seeking stakeholder input for Phase 2 of the Muskoka Economic Strategy project. It outlines the questions asked by the consulting team and responses generated by stakeholders.

4 Malone Given Parsons Ltd. * Centre for Spatial Economics 2.0 PHASE J: BACKGROUND REPORT SUMMARY

2.0 PHASE 1: This section provides a summary of key points from the economic trends BACKGROUND research and economic sectors analysis from the Phase J: Background REPORT Report. In addition, it provides the concluding questions posed at the SUMMARY completion of Phase I that were to be examined in the Phase 2: Strategic Action Plan.

2.1 Key Trends The Phase J: Background Report examined the economic context influencing growth in the District of Muskoka. The key points from the report were: • The outlook for economic growth throughout the industrialized world is positive over the long-term; • Since most of Canada's international trade activity is with the United States, Canada's economic potential is strongly linked to the U.S.; • Ontario's real annual growth rate was projected to average 2.8 percent from 2006 to 2008, 3.1 percent from 2008 to 2016, 2.7 percent from 2016 to 2026 and 2.2 percent from 2026 to 2031, (Note that such more recent events as the sub-prime mortgage crisis in the US and the global financial market crisis have precipitated a recession in 2009; but do not prompt re-consideration of the longer term, more positive growth expectations); and, • The Golden Horseshoe will continue to attract a disproportionate share of the country's investment, jobs, and people in the decades ahead.

Specifically for the District of Muskoka's economy: • Goods production is accounting for a declining share of total employment and services production is accounting for a growing share; • From a GOP point of view, the three most important sectors in the District are the manufacturing ($309 million), construction ($220 million), and real estate, rental and leasing ($199 million) industries. However, from an employment point of view, the three major sectors in the District are the accommodation and food services (3,520 jobs), retail trade (3,480 jobs) and manufacturing (3,110 jobs) industries; • Thirty five percent of all jobs exist for export purposes, 57% of these are in sectors fulfilling needs of the tourism, seasonal cottage and retirement markets; • Among persons aged 20 to 64 years of age, the proportion of Muskoka residents with a university certificate, diploma or degree (14%) is significantly lower than the provincial average (24%). Muskoka residents have correspondingly higher representation among those with

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a trades certificate or diploma (14% vs. 10%) or those with less than a high school graduation certificate. (24% vs. 20%). • The median income of persons 15 years of age and over with incomes in 2001 was $20,431 in Muskoka compared to the provincial average of $24,816, a gap of about 18 percent. • The average household income in 2001 was $52,422 compared to $66,893 for Ontario, a gap of about 21 percent.

In terms of Muskoka's population trends, highlights included: • Between 1976 and 2006 the population grew at an average annual rate of 1.4 percent, matching the pace achieved by the province; • In 2006, 39.6 percent of the population was 50 years of age or older compared to just 30.1 percent for Ontario; • The pace of growth in births and deaths over the 1987 and 2006 period revealed that the net natural change in population was slightly negative every year since 1997; and • In 2006, the District's seasonal population of approximately 79,300 people exceeded its permanent population of approximately 60,000 people.

Highlights from Muskoka's employment land inventory were that: • Bracebridge has 358 acres of net vacant employment land, the largest concentration in the District; • Huntsville has the second largest concentration of net vacant employment land in the District with 293 acres; and • Gravenhurst's Business Area contains 77 acres of net vacant employment land followed by the Airport Industrial Area with 16 acres.

Key observations for Muskoka's resorts inventory included: • Nights spent in paid, roofed lodging accounted for 24% of visitor nights (including cottagers') but 50% of expenditures ( for $84 million) in the District in 2004; • Waterfront resort properties contribute $443 million to the District assessment base; • Housekeeping cottage facilities make up 66% of the resort property base, but only 15% of assessed value; • The number of resort properties has been in decline since the 1950's 557 were recorded for 1957, 89 were recorded in 2007; • Of those 89, fifty eight (65 %) are on sites smaller than 5 ha;

6 Malone Given Parsons Ltd. * Centre for Spatial Economics 2.0 PHASE1:BACKGROUNDREPORTSUMkURY

• Investment in smaller traditional resort properties has also been in decline since the 1950's, but has been replaced by new investment in resort condominium, and more recently, fractional properties; • The development of more recent commercial/residential condominium projects (e.g., Red Leaves, Taboo, Gravenhurst Wharf, The Muskokan Resort Club, Touchstone, etc.) shows strong market interest in investing in Muskoka, where risks and returns are acceptable;

Key conclusions from the economic growth projections were that: • Employment is expected to decline in the primary and manufacturing sectors in Ontario over the next few decades. Therefore there is limited scope for employment expansion in these two sectors. The number of jobs in business services (a "Knowledge Economy" sector) was low, suggesting that when expertise was required by permanent residents or businesses, many obtained these services outside of Muskoka; • The economic analysis identified tourism, seasonal residential and retirement (TSR) related demands as a key driver for economic and population growth; • If TSR employment grows at the same rate as the population 45 and over in southern Ontario's metropolitan areas it will grow from just over 4,600 jobs in 2001 to almost 9,000 jobs by 2031; • Muskoka's permanent population was forecasted to grow from approximately 60,000 in 2006 to 82,500 by 2031, for an increase of 37.5 percent; and, • Muskoka's employment was forecasted to grow from 25,900 jobs in 2006 to 35,700 jobs at 2031, for an increase of37.7 percent.

2.2 Muskoka's Key Muskoka's key economic sectors are: Economic Sectors • Tourism; • Natural Resources; • Manufacturing and Transportation; • Construction, Real Estate and Business Services; • Trade and Personal Services; and • Public Services.

The Phase 1: Background Report's economic sector projections and key trends analysis conclusions were as follows.

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Tourism: • The Tourism Sector is a key contributor to Muskoka's economic base tourist expenditures were estimated at $215.3 million in 2004; • The Tourism Sector's employment is projected to increase from 4,530 jobs in 2001 to 7,530 jobs in 2031; • Muskoka has experienced significant decline in the amount of investment in new plant at smaller resorts over the last two decades. A combination of large-scale hotel resorts and fractional ownership products make up the majority of new and redeveloped inventory being introduced in today's market.

Natural Resources: • A declining stock of marketable timber means the forestry industry has limited prospects for growth; • The presence of the Canadian Shield means much of Muskoka's terrain is rocky with shallow and infertile soils. Agriculture is limited to small pockets ofarable land; • The aggregates extraction industry employs approximately 100 people. The product is used for local construction materials and dimension stone.

Manufacturing and Transportation: • The prospects for sustained operations and output growth are promising if manufacturers can continue to adjust their operations to meet competitive pressures; however, this sector's employment is expected to decline over the long-term.

Construction, Real Estate and Business Services: • The Construction, Real Estate and Business Services Sector is projected to experience strong employment growth to 2031. Specifically, the construction industry is expected to contribute over one-third ofthis increase in employment; • Employment growth in the business services industry is also expected over the long term. Many of the jobs in this industry are commonly referred to as "knowledge-based" jobs and many can work from their Muskoka residence.

Trade and Personal Services: • By 2031, retail trade jobs are projected to increase to 6,240 jobs. Prospects for additional retail growth are very good given projected growth in the District's seasonal and permanent populations.

8 Malone Given Parsons Ltd. * Centre for Spatial Economics 2.0 PHASEl:BACKGROUNDREPORTSUMMURY

Public Services: • The highest increase in employment in Public Services is expected to be in health care and social assistance (82% growth by 2031) driven largely by the aging population; • Employment opportunities were also favourable in educational services, specifically the post-secondary institutions; • Public administration employment is higher in Bracebridge, home to the District seat, and in Gravenhurst, home to the Fenbrook and Beavercreek Correctional Institutions.

2.3 Concluding The Phase 1 Background Report concluded with the following questions to Questions be answered in the Phase 2: Strategic Action Plan.

1. What opportunities and challenges confront specific sectors? What policies in the District Official plan can support such initiatives? What measures will provide the best indicators of health or growth? 2. What is the most effective role for the District level Economic Development Function? Should it be greater than it is today? How should it interact with local municipal, other agency and private sector functions and initiatives? 3. Is a new model for managing tourism development in Muskoka required? What might it look like? What would its mandate be and how would it be funded and delivered? 4. What are the implications of the declining number of waterfront resort properties? Of the apparent market shift to more fractional recreational units? What can or should planning policies and lor other initiatives do to improve the competitive context for this type of transient tourist accommodation? 5. What are the implications of Muskoka's aging population and migration patterns. Does this represent an opportunity for the health care and retirement/assisted living sectors, or a liability to the local public health system? 6. Are their particular assets that could be added or further leveraged to promote Muskoka's attractiveness and economic growth?

These questions are answered in the concluding section, following discussion of Muskoka's opportunities, recommended economic strategy and actions, and a recommended economic development organizational structure.

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10 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

3.0 ISSUES AND This section presents the issues, gaps and opportunities affecting regional OPPORTUNITIES economic development in Muskoka. The discussion is organized into three sub-sections, first addressing sector-wide matters, then those specific to individual sectors, then those specific to the tourism sector. They are based on the sector consultation input and the consulting team's experience in other communities. Each set of directions describes the key issues, gaps and opportunities influencing the sector's prospects.

Summary notes from the consultation sessions are provided in Appendix A.

3.1 Sector-Wide Issues, Key Issues Gaps and • While the District has identified Strategic Priorities, Muskoka does not Opportunities have an over-arching "Vision" guiding activity and decision-making. [Note that the District Planning and Economic Development Department will be addressing definition of such a Vision as one of its planning initiatives for 2009]; • There are a number of agencies pursuing economic development objectives in Muskoka, including the District and local municipalities, Chambers of Commerce, the Muskoka Small Business Centre and Muskoka Futures with no formalized mechanism for coordination; • Labour shortages affect many sectors; • There is insufficient housing available to low to medium income earners; • Muskoka is not perceived as welcoming to visitors with different cultural heritages; • There are a large number ofpower outages throughout Muskoka; • There is a perception that regulatory hurdles restrict economic development opportunities.

Key Gaps • There is a strong sense that "Muskoka could do more, better" in developing its economy; • There is no District level function charged with or resourced to identitY or coordinate economic development efforts on issues that extend across two or more area municipalities; • Employment locations and travel distances present barriers to some residents. There is no public transit or alternative transportation system

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in Muskoka to transport people from places of residence to places of work, particularly for lower income earners; • Notwithstanding the importance of environmental protection in Muskoka, the District has no significant profile as a place with a strong "green" industries sector (i.e., businesses focussed on products or processes that reduce human impact on the environment); • There is no common recognition of the role that cultural planning and knowledge of the Muskoka's "quality of place" could play in making the District a more compelling destination for tourists or labour force talent; • Internet and cell phone accessibility is not fully available across Muskoka; • There is no one-stop portal for businesses expanding into Muskoka that may require information or assistance; • There is a sense that more could be done to generate small business growth. The Muskoka Small Business Centre and Muskoka Futures, provide business assistance; however, new business development and success could be strengthened by mechanisms supporting succession planning and mentoring, particularly if they could engage the talent held by many of the District's cottagers and retirees.

Key Opportunities The key opportunities to encourage business investment in the District of Muskoka are to: • Develop a clear economic vision for Muskoka; • Build more collaboration and coordination amongst municipalities and other economic development agencies in Muskoka; • Integrate the data gathered in the Muskoka Assessment Project study in a cultural mapping system that incorporates new inventories of the District's cultural heritage, organizations and industries. Use that mapping as a foundation for preparing a community cultural plan to preserve, enhance and market the District's cultural resources; • Small business opportunities exist throughout most sectors of the economy. Experience shows that both start-up and more established operations can benefit from access to advice and loan or equity capital to support success and growth. There are well funded initiatives by the provincial and federal governments to provide access to such services and to support innovation and commercialization of new product concepts. There is an opportunity for Muskoka to support business

12 Malone Given Parsons Ltd. • Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

growth by offering enhanced advisory services and programs aligned with senior government funding initiatives; • Improve communication with and support for potential entrepreneurs in Muskoka on local business and employment opportunities; • Consider the potential of a business incubator to support new business start-ups; • Enhance succession planning and business counselling initiatives; • Develop events and recruitment initiatives that entice culturally diverse visitors and labour; • Develop distinct "centres of excellence" for tourism and other product areas where Muskoka assets and businesses enable a competitive advantage; • Facilitate stakeholder discussions on labour recruitment initiatives to fill the labour gap; • Improve Muskoka's attractiveness to labour by improving the supply of attainable homes for low to medium income households; • Facilitate the exploration and implementation of solutions to improve transportation connections to rural and retail core employment locations; • Explore development options in the vicinity of the Muskoka Airport; • Improve internet and cell phone accessibility for all residents and businesses in Muskoka and for cottagers and visitors as a tool to extend their length of stay; • Support and encourage, through policy, sustainable economic and environmental practices in Muskoka; • Advocate to senior levels of government on issues affecting Muskoka's businesses; • Explore methods to improve power reliability throughout Muskoka; • Communicate economic development success regularly; • Explore opportunities to market Muskoka through the use of new media technologies (i.e. YouTube, Facebook, blogs, etc.) to reach the ever increasing users ofthese "social media"; and, • Market Muskoka as a location where businesses are succeeding and growing.

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3.2 Sector-Specific This section addresses the following sectors: Issues, Gaps and Opportunities • Natural Resources; • Manufacturing & Transportation; • Construction, Real Estate & Business Services; • Trade & Personal Services; • Public; • Second Homes; and, • Information, Communications & Technology.

3.2.1 Natural Resources The Natural Resources Sector consists of three industries: Forestry, Sector Agriculture and Aggregates Extraction.

Forestry Industry Key Issues • The fluctuating value of the Canadian dollar has reduced the competitiveness of Canadian forest products industries; • The subprime mortgage fallout in the United States has significantly lowered the demand for lumber in the housing construction market; • It is difficult for loggers to obtain access to operations via unopened road alIowances; • Unsustainable logging is being practiced in Muskoka. Well managed forested lands are required for this industry to remain sustainable; • Rural residential development is creating conflicts with natural resource based businesses. Key Gap • The District of Muskoka does not yet have an education program respecting commercial forestry. Key Opportunities Key opportunities for the local forestry industry are to: • Support the development of a sustainable forestry industry in Muskoka; • Support the development of forest products manufacturing industries able to leverage the market base created by regional construction activity;

14 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

• Support other municipal resolutions for road improvement funding or a percentage of royalties to support crown land logging.

Agriculture Industry Key Issues • Agriculture is limited to small areas of viable land. • There have been few restrictions on rural residential development which can sterilize arable land or introduce conflicts with agricultural practises. Key Opportunities • Promote 10calIy produced agricultural goods (e.g., as through the Savour Muskoka initiative) to the cottage community and tourists. • Develop policies that limit rural residential development on or constraining activity on agricultural lands. Aggregates Extraction Industry Key Issue • Locally available aggregate supply is an important contributor to minimizing construction and maintenance costs in the District. Key Opportunity • Protect future aggregates extraction locations to ensure the industry is sustainable into the future; • Ensure that extraction practises protect environmental quality and aesthetics.

3.2.2 Manufacturing and Key Issues Transportation Sector • Intense economic pressures on the manufacturing industry are resulting in local manufacturers closing and laying off workers; • Delivery times to customers outside of Muskoka are long; • The Ministry of Training, Colleges and Universities' (MTCU) requirements for employer to apprentice ratios are perceived as too high to enable a sufficient stream of qualified workers;

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• The Ministry of Training, Colleges and Universities [at the time of consultations I] does not provide a local representative to service Muskoka businesses and facilitate the apprenticeship training program; • Level of awareness of load restrictions and poor road conditions can impede product delivery (especially in rural areas). Key Gaps • Lack of available skilled and entry-level labour. • Lack of local skills training facilities. • Lack of serviced land supply in Gravenhurst. Key Opportunities • Support workforce retraining initiatives; • Support new business start-ups with advisory and access to capital services; • Support re-deployment of skilled labour and manufacturing facilities by marketing Muskoka to manufacturing industries that can leverage Muskoka's location, assets and branding, in, for example:

o Developing "green" technologies products;

o Building recreation or cottage oriented products for tourists, the local cottage community and export markets. • Link Georgian College with employers to fill vacancies and train employees; • Leverage Muskoka's assets such as the Muskoka Airport, Post Secondary Institutions and CN Rail for business attraction initiatives; • Communicate growth expectations and the advantages of operating a business in Muskoka; • Fulfill sector business needs as identified in local Business Retention and Expansion (BR+E) projects; and, • Continue to develop the Muskoka Airport as a node for aviation related businesses and/or a special development district.

I Discussion with the Service Delivery Manager for the Ministry of Training, Colleges and Universities' Barrie Apprenticeship Office confirmed that as of July 2008, a representative now services Muskoka businesses and facilitates the apprenticeship training program.

16 Malone Given Parsons Ltd. • Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

3.2.3 Construction, Real Key Issues Estate & Business • The Construction industry has similar trades training issues as for the Services Sector Manufacturing and Transportation Sector; • Many trades people are involved in large construction projects (e.g. Red Leaves Resort) or high-end cottage developments. ThIS reduces the availability to complete smaller renovation projects; • There are indications that the breadth of business services available in Muskoka is not fully recognized; • It is expensive to construct buildings or develop properties in the District's Canadian Shield environment; • There are a large number of studies required to complete a development project, perceived by some as a barrier to development, by others as critical to preserving environmental and other values. Key Gap • Lack of available local skilled trades people and general labourers. Key Opportunities The key opportunities to develop this sector are to: • Provide services for cottage owners as they convert their cottages to permanent dwellings; • Provide wealth management, insurance, building design, landscaping (all knowledge or creative economy jobs) and maintenance services (entrepreneurial opportunities) to cottage or fractional owners and relocating retirees; • Support construction of attainable homes for low to moderate income households; • Promote working from Muskoka to business services professionals; and, • Facilitate business succession to support younger people taking over local businesses from owners nearing retirement.

3.2.4 Trade & Personal Key Issues Services Sector • Difficult to promote retailing as a career opportunity since it is perceived as being low paying; • Retail staff often require access to a vehicle to get to their place of work;

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• Downtown businesses owners have poor sidewalk accessibility (in the winter) and inconsistent store hours; • The customer service experience is inconsistent throughout Muskoka's retail and personal service businesses; • Poor aesthetic appeal of businesses along Highway 11, travelling up to and within Muskoka; • It is difficult for many businesses to survive the winter/non-tourism season. Key Gap • Difficult to find consistent and welcoming customer service labour. Key Opportunities • Facilitate the development of labour recruitment and customer service training initiatives for the retail industry; • Promote and program Muskoka's downtowns as specialty retail experiences and special "places"; • Develop events and festivals throughout the year; and, • Facilitate policy development and programs to support aesthetic improvements to Muskoka's Highway 11 properties.

3.2.5 Public Sector Key Issues • There is a perception of there being too many overlapping and uncoordinated government regulations and services; • Competition between Muskoka's municipalities for private and public sector economic development investment; • Many residents require a vehicle to access public services; • Health care services are being centralized to larger centres (e.g. Barrie); • Local elementary and high schools are experiencing declining enrolment. Key Gaps • The lack of available public and private child care facilities impedes labour force participation. • There is a lack of cultural diversity.

18 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

Key Opportunities • Build upon the presence of post-secondary institutions by leveraging key elements of Muskoka's economy and asset base (i.e. culinary, arts, hospitality, eco-adventure tourism, outdoor recreation, environmental research) to expand curriculum offerings and attract presences by other institutions; • Explore post-secondary institution opportunities such as a Centre of Excellence for Hospitality Management, School of Forestry Sustainable Resource Management and School of Aviation at the Muskoka Airport; • Provide the aging population base with more local public and private health care services; • Explore the potential of expanding the correctional institutions; • Develop walkable communities; • Use FedNor's youth internship program as a means of retaining Muskoka's youth; • Enable child care as a permitted use in downtown, retail and industrial employment areas; • Strengthen the District's economic development role; and, • Cooperate and collaborate on economic development initiatives with stakeholders (e.g. Muskoka Futures).

3.2.6 Second Homes Key Issues Sector • Increasing property and assessment values are introducing new pressures on cottage property. Outcomes include higher turnover and cottage rentals competing with commercial properties for tourist accommodations; • Protective cottage associations may hinder prospects for otherwise desirable redevelopment of waterfront resort properties; • Some degree of enmity continues between permanent residents and the cottage community; • There is a perception of Muskoka being a wealthy district, but household incomes are low.

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Key Gaps • Inconsistent access to cel1 phone and internet services hinders the District's ability to enable cottagers to extend their stays while getting work done with offices/contacts in the city; • There are no formalized mechanisms to engage cottagers and potential retirees in economic development initiatives in the District (e.g., business succession, mentoring). Key Opportunities • Attract more cottagers to community events; • Second home owners converting to full-time residence in the District bring wealth and expertise to the community, year-round demand for services, and a potential pool of new business partners or successors; • Cottagers and retirees are key clientele for improving the breadth of dining, shopping, culture and entertainment offerings; • Providing personal and business services for cottage owners; • Keeping cottagers working or staying in the area longer; • Tapping into cottagers' skill sets by supporting business mentoring initiatives.

3.2.7 Information, The ICT sector is made up of sub-elements of several of the above industry Communications & Telecommunications sectors. It is addressed separately here to give more prominence to its role (lCT) Sector enabling what have become basic services and modes of access to information for residents, cottagers, businesses, visitors and prospective visitors to Muskoka, and as a central driver of the interconnected knowledge, creative and experience elements of the total economy.

Key Gap • Internet and cell phone access is not available across the District. Key Opportunities • Support the Muskoka Community Network efforts to expand access to broadband services across the District; • Promote tele-working from Muskoka, for current and prospective new businesses and for extended stays by cottagers; • Promote adoption of broadband access and web-enabled networking by businesses and accommodations providers throughout Muskoka.

20 Malone Given Parsons Ltd. • Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

3.3 Tourism Directions As described in the Phase 1 Report, the Tourism Sector together with its seasonal and retirement related components represent 57% of Muskoka's economic base employment. It also has significant growth opportunities if managed to achieve the potentials enabled by the District's asset base. The Sector was historically built on the scenic beauty of Muskoka's land and waterscapes, its profile as a resort and cottage destination and its proximity to the Greater Toronto Area. New opportunities are expected to arise from better leveraging ofthese assets, and adding new layers ofattraction around arts and culture, spa and wellness, culinary, eco- and adventure tourism, and events.

This Tourism Directions section reviews the recommendations from the Muskoka Assessment Project, summarizes the output of the Economic Strategy's consultation sessions, and synthesizes a set of recommended strategic directions for the sector. Issues, opportunities and directions related specifically to the Resorts component are addressed in Section 3.3.3.

3.3.1 Muskoka The Muskoka Assessment Project (MAP) was completed in 2007. It used Assessment Project the Premier-ranked Tourist Destination Framework to provide an Summary assessment ofthe competitive position ofMuskoka's tourism industry. The assessment concluded that Muskoka is not fulfilling its potentials, with significant weaknesses in two of three assessment dimensions.

Three critical needs identified in the study report address:

Destination and Product Development "Tourism development plans don't exist within individual destinations (towns/townships) or on a district-wide basis and there are no processes in place to consider the tourism development issues thatface the destination. " (Muskoka Assessment Project, 2007, p.63)

Duplication of EffortlLack of Alignment "It has often been said there needs to be an alignment of effort on behalf of all these organizations [engaged in tourism] to reduce duplication of effort and competition for available marketing and funding dollars." (Muskoka Assessment Project, 2007, p.62) Non-Competitive Marketing "Muskoka may suffer a competitive disadvantage in that the region has not adopted a voluntary destination marketing fee (DMF) which would help fund marketing initiatives. Many competing destinations have implemented DMF's, which allow them to make major

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investments in marketing and leverage those funds to acquire additional partnership dollars. " (Muskoka Assessment Project, 2007, p.5) "None of the organizations involved in tourism marketing have sufficient funding to conduct research, identify target markets and to develop programs that effectively market the region or individual destinations therein. " (Muskoka Assessment Project, 2007, p.62) MAP developed recommendations to be implemented in the immediate-, mid- and long term, introduced by commentary calling for "pro-active industry involvement in future strategic planning'. These recommendations are outlined below: Immediate: • [Define and] Implement a Tourism Destination Development Plan; • Clarify the role of all organizations who have a stake in tourism marketing and destination development in Muskoka; • Introduce an annual visitor survey to track visitor experiences; • Share comments received from survey respondents regarding gaps and opportunities with each town or township economic development officer and chamber manager. Mid Term: • Grow tourism development and marketing budgets by introducing a voluntary Destination Development/Marketing Fee; • [Develop] hospitality training; • Better understand the second home owner/fractional unit dynamic; • [Promote the] importance of tourism. Long Term: • Identify strategies and tactics to extend length of stay, grow tourism expenditures (day and overnight) and seasonality of visitation, including:

o Market research and development of a strategic marketing plan;

o Creating new reasons to visit;

o Crating more packages with an overnight component;

o Improved hours of operation;

o Examination of the feasibility of creating a Muskoka School for the Arts; • Examine the feasibility of creating the Muskoka Hospitality Centre;

22 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

• Partner with Muskoka Community Network (MCN) to help Tourism Operators acquire broadband connectivity and help them with Information technology concepts and strategies such as e-commerce and marketing; • Officially sanction/identify agencies and websites providing tourism marketing support.

3.3.2 Tourism Sector The Economic Strategy's Phase 1 and 2 analysis and consultations also Issues, Gaps and elicited a range of issues, gaps and opportunities, as summarized below. Opportunities Many are common with the MAP study: Key Issues • Notwithstanding its iconic asset base, Muskoka is undetperforming relative to its potentials - the District ranked 17th in visits to upper tier destinations in 2004; • The industry remains largely reliant on summer season traffic, but many businesses important to strengthening shoulder seasons visitation are open only in summer; • Muskoka has a profile as a high cost destination; lower price point options are not well-promoted to potential markets; • Concern was expressed that Official Plan policies affecting Muskoka's Beds and Breakfasts, Inns and spas constrain growth opportunities; • Accommodations capacity is increasing at the same time as visits are in decline; • Muskoka is not perceived as welcoming to visitors with different cultural heritages; • The range of competitive destinations at attractive prices continues to expand, making it ever-more challenging for Muskoka to improve its success in the tourism marketplace. Key Gaps • There is no entity "managing the whole of the tourism machine,,2 in Muskoka; • Tourism marketing is carried by many entities with no coordination or coherent or consistent messaging or branding;

2 There is no agency, industry-led or otherwise, taking on responsibility for destination management integrated with market communications.

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• The dominant role of tourism and cottaging in the District economy is not fully appreciated or embraced; • The sector is particularly hard hit by labour shortages and a lack of housing options available to lower wage earners; • Service quality and hospitality are not competitive; • Muskoka is not creating compelling events; • The District is not penetrating business travel markets; • The same can be said of Muskoka's leveraging of its natural heritage to attract more "eco" or adventure-oriented tourism; • Downtown shopping districts are challenged to operate with consistent operating hours; • There is a lack of tourism, shopping and dining experiences in the shoulder and winter seasons; • There is a lack of fine dining establishments and nightlife; • The "messaging" in weather reports and forecasts is perceived as negative and prone to cause people to not travel or visit attractions. Key Opportunities The key opportunities for developing the Tourism Sector in Muskoka are to: • Develop a tourism management function/entity that can integrate tourism development and marketing strategy all in a manner consistent with the importance of the sector to the Muskoka economy. As part of that strategy; a discussion should take place with area municipalities and the industry to identify product types, travel segments and localities where "centres of excellence" could be created to enhance the District's product diversity and attractiveness; • Define and implement a sustainable and sufficient funding program for tourism management and marketing;

• Expand the tourism product base and improve penetration of under represented market segments, including business travel, arts & culture, (building on the current investment in a community atlas) culinary, spa & wellness and eco- & adventure tourism (leveraging on an area such as the Georgian Bay Littoral World Biosphere Reserve) , more diverse ethnic and cultural backgrounds and those seeking lower cost options;

24 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

• Renew the commitments to event programming, leveraging them to expand visitation in all seasons and build the traffic necessary to support longer operating hours and seasons and a more diverse offering; • Identify and implement solutions to labour shortages, and improved levels of customer service and hospitality; • Identify and implement solutions to the lack of housing attainable to lower wage earners and seasonal staff; • Promote visits to Muskoka's resorts and other destinations to the in Muskoka market; • Reduce the impact of negative weather forecasting by working with other tourist destinations to engage the media and improve their messagmg; • Promote public understanding of the importance of tourism and cottaging to the District economy; • Review policies affecting Muskoka's Beds and Breakfasts, Inns and spas for unintended constraints to growth; and, • Consider District Official Plan content and pol icies that would:

o Continue to highlight the economic importance of the District's asset base, tourism and cottaging;

o Promote the value of "Placemaking" for its centres;

o Protect public access to valued public resources;

o Expedite the approval of new tourism infrastructure; and,

o Require the provision ofmore attainable housing.

3.3.3 Resorts Sector The importance of the resorts accommodation sector to the Muskoka Issues, Gaps and experience was highlighted in the Request for Proposals for the Economic Opportunities Strategy. Work completed in Phase 1 of the Economic Strategy study establ ished that: • Recent large scale investment in commercial/residential condominium projects confirms that there is still strong market interest (pre-recession) in investing in Muskoka where risks and returns are acceptable. At the same time, evolving market and competitive circumstances have made re-investment in renewing and continuing to operate smaller resort properties difficult; • Redevelopment of these properties as fractional ownership projects, with units available to the travelling public when not in use by their owners, is seen as a viable means of enabling reinvestment and maintaining a stock of accommodations units accessible to more than one owner;

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• The Ministry of Tourism has identified eight resort properties in the region being converted to fractional projects. They are estimated to result in a net increase 208 new rooms (518 new rooms less 310 existing rooms) being available to their multiple owners and the travelling public. Consultation with the tourism and resorts sectors in both Phases 1 and 2 of the Economic Strategy Study identified the following key issues, gaps and opportunities: Key Issues • Changing market preferences, increasing operating costs and changing competitive circumstances threaten the viability of smaller waterfront resorts; • Reinvestment in capital improvements to sustain ongoing operation as a commercial resort is typically not accessible or available; • The next generation typically is not interested in or cannot make business sense of taking over family resort businesses; • Resorts Ontario uses ratings criteria that inappropriately down-rate Muskoka's resort offerings, for example for not having lit parking lots • There are no reasons to expect this overall picture to improve, leaving current owners with their capital trapped in high value but otherwise non-liquid assets. An attractive exit strategy is to make it sell as a residential property; • The overall sector is experiencing declining occupancy rates, even as supply is being reduced; • Provincial legislation and policies regarding municipal responsibility for private communal services impede the development or redevelopment of resorts on private services; • Current Official Plan policies preclude multi-unit development on private services or in Waterfront designations unless it is for commercial purposes (Le., offering accommodation to the travelling public). There is concern that resort re-development projects using fractional ownership models might skirt these restrictions by not actually making units available to the public; and/or are inappropriately taking advantage of the higher density permissions that accrue to commercial projects. Key Gaps • Smaller property resort product is nonetheless considered to be of continuing importance to Muskoka. Their wholesale conversion to e.g., private cottage properties would represent an unacceptable loss to the District product mix and economy;

26 Malone Given Parsons Ltd. * Centre for Spatial Economics 3.0 ISSUES AND OPPORTUNITIES

• There is often no financeable route to property redevelopment (e.g., for fractional ownership units) that doesn't pose unacceptable risk to the owner; • Planning approvals timelines can increase investment risk in redevelopment projects; • Current policies requiring Official Plan Amendments (OPA's) to enable new resort development may be overly restrictive; • There is speculation that spending in the community by fractional property owners or renters or timeshare exchange visitors during their stays in their units may be similar to spending by traditional tourist visitors to resorts. To the extent that this is true, equivalent spending and employment impact patterns may moderate arguments against the conversion of resort properties to fractional (residential) projects, or against the need for fractional projects to maintain a pool of units in a rental program. Research into the characteristics of fractional projects and owner/renter behaviours would fill these knowledge gaps. • All properties are challenged to find sufficient and trained labour.

Key Opportunities • Clarify and enforce distinctions between and expectations of commercial vs. residential (cottage) redevelopment of resort properties; • Recognize the redevelopment of some portion of the District's stock of resort properties using the fractional ownership model as a reasonable and viable means of maintaining a supply of accommodations units available to both their owners and the travelling public, and enabling capital transfer and reinvestment; • Consider the application of a site size threshold below which conversion would be permitted but only to a residential (cottage) unit density; • Consider whether there is need to or merit in defining guideline-based criteria to distinguish between waterfront resort properties that can be converted to private cottage properties, and those that must be maintained as tourist commercial properties making beds available to the transient public. This could be explored through the "Resort-Re investment Capital Summit" session recommended below; • Convene a "Resort Re-investment Capital Summit" between property owners, lenders, planners and lawyers to identify solutions to the barriers impeding re-investment in resort properties thereby retaining tourist commercial functions. Facilitate the implementation of the identified solutions;

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• Promote the emergence of new opportunities for property management businesses with resort redevelopment, noting that these business may not have to be "on-site" to sustain operations providing units available to the travelling public; • Market interest in eco-tourism may support development of small footprint and more remote resort properties. Such resorts would be a logical addition to Muskoka's experience product. They are typically small in scale, ranging from fewer than 10 to no more than 40 accommodations rooms or cabins to minimize intrusion into the landscape, and focus on activity in and interpretation of the natural environment; • Advocate to Resorts Ontario to modify their ratings systems to more fairly recognize development standards appropriate to the Muskoka setting; and, • Consider District Official Plan content and policies that would:

o Continue to highlight the economic importance of the District's resorts sector, and the need to sustain it as part of the accommodations and Muskoka experience mix;

o Clarify distinctions between and expectations of commercial vs. residential (cottage) redevelopment of resort properties;

o Consider the directions identified through the "Re-investment Summit";

o Explore a development permit system for existing resort properties to reduce approvals timelines for redevelopment projects;

o Identify tests and requirements to ensure that resort properties remain commercial over the long term and that re-development occurs at appropriate densities;

o Consider designating larger resort properties as "Employment Lands" subject to restrictions on conversion to other uses only upon a comprehensive review, to protect these properties from conversion pressures; and,

o Explore new approaches to facilitate remote small footprint eco resort development.

28 Malone Given Parsons Ltd. * Centre for Spatial Economics 4.0 VISIONAND STRATEGY

4.0 A VISION AND The objective of this study is "to define a strategy that promotes sustainable STRATEGY economic development that complements the natural setting and FOR community values of Muskoka". Given the issues, gaps and opportunities ECONOMIC identified in the previous section, the discussion now turns to defining that DEVELOPMENT strategy. It begins with a review ofthe meaning of sustainability, advances a working definition for a Vision for Muskoka, then articulates an economic strategy to achieve that Vision and respond to the identified gaps and opportunities. It concludes with discussion of how the strategy can be implemented through efforts at the District level.

The definition of "sustainable development" originates from the UN's 1987 Brundtland Commission as being "development that meets the needs of the present without compromising the ability of future generations to meet their own needs"). The expression has come to embrace several core elements: • Minimize consumption of non-renewable resources; • Maintain the ability of the eco-system to support life and its continued evolution; • Ensure that new activities will be self-sufficient, i.e., that they replace or generate at least as many resources as they consume; and, • "Needs" include the human need for fulfillment as well as for survival.

The concept is also attached to what has become termed a "Triple Bottom Line" approach to decision-making - one that considers environmental and social as well as economic outcomes.

These definitions help frame the context for the Economic Strategy. 4.1 Strategic Vision A basic issue raised in a number of consultation sessions is that while the District has defined "Strategic Priorities", the District and the Muskoka community are planning without a common "Vision" of what Muskoka wants to be, or what its supporting economic development priorities should be. The District's ongoing Official Plan Review process will address this challenge, but it was thought helpful if some foundation ideas could be advanced through the Economic Strategy to initiate discussion. The Vision elements presented below reflect the consultants' interpretation of what seemed to be most important to stakeholders engaged through the consultation process.

) United Nations. 1987."Report of the World Commission on Environment and Development." General Assembly Resolution 42/187, 11 December 1987.

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On this basis, the suggested strategic Vision for the District of Muskoka should include the following principles:

Muskoka will become a place which: ~ Seeks sustainable economic development that complements its natural setting and its caring community values; ~ Establishes the maintenance of its scenic beauty, its environmental quality and its ability to provide a healthy and fulfilling community for its citizens and visitors as its highest priorities; ~ Is renowned for its success in creativity, innovation and new business growth;

~ Welcomes residents and visitors from all points on the globe and all walks of life; ~ Has a vibrant and diverse economy offering rewarding education, employment and entrepreneurial opportunities to all who seek them; and ~ Offers accessible housing and accommodations to its workers, residents and visitors.

It is recommended that these draft elements be reviewed with all community stakeholders, modified as appropriate, and adopted by area municipalities and the District as the Vision for Muskoka.

4.2 Economic Strategy In consideration of this Vision for Muskoka, and with reference to the opportunities to foster regional economic development identified in Section 3.0, the recommended economic strategy for Muskoka is to:

~ Fully engage with the tourism, seasonal and retirement sectors as Muskoka's core business; :r Leverage Muskoka's assets, brand and market position to broaden the region's economic portfolio by building new activity, innovation and diversity in the "green", creative and other industries serving local and broader markets; :r Build technology, institutional and labour force foundations adaptable to changing economic conditions and attractive to new businesses; and, ~ Reduce the hurdles that constrain labour availability and mobility; :r All in a context of maintaining if not enhancing Muskoka's scenic beauty and environmental quality.

30 Malone Given Parsons Ltd. * Centre for Spatial Economics 4.0 VISION AND STRATEGY

This strategy stems from the following core considerations:

• The fact that the "TSR" sector driven by the tourism, recreational housing and related industries is the largest contributor to the District's economic base, is expected to have the highest growth rate into the future, and is fundamentally reliant upon the continued attractiveness and quality of the Muskoka environment; • The strong need to diversify the District economy, to build strength and wealth creation in other sectors with higher value-added and pay scales, and less seasonal employment. Insofar as "Muskoka" has brand cachet and a demand base that would support local growth in the high growth "green" industries sector (i.e., businesses focussed on products or processes that reduce human impact on the environment), there is logic in targeting these in particular for business growth. Creative industries here describe those where knowledge drives product and service innovation, in addition to those in the arts, design and cultural sectors; • The economy will continue to require new knowledge and skills from its workers. Local education and training facilities that contribute to these will make for a more resilient and attractive work force, and a better case for starting or growing a business in Muskoka. Technology, particularly digital and web-based tools and processes, is basic to new collaboration, innovation and growth; and, • Difficulties in finding and accommodating labour, and connecting workers to job sites are a particular concern in Muskoka.

These are addressed with recommended initiatives for economic development, and related policy directions for consideration in updating the District Official Plan in the remainder if this report.

4.3 1m plementation The discussion of gaps, issues and opportunities in Section 3 identified a number that could be addressed by action by the upper and lower tier municipalities and by other stakeholders in economic development. The focus in this Economic Strategy is on those initiatives that can reasonably be undertaken by the District level, either directly or through collaboration with other stakeholders. The primary tools at the District level lie in the policy directions it can mandate through its official plan, through investment in economic development, and through the day to day decisions it makes on such items as development applications, servicing and transportation strategies, communications and support for initiatives that may appear unrelated to economic development.

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The recommended strategy primarily addresses action in the first two areas. It will be important for District Council to consider issues of impact on economic development and sustainability as it makes decisions on these other matters.

32 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

5.0 STRATEGIC Given definition of a preliminary Vision and an Economic Strategy, and the ACTION PLAN gaps and opportunities identified in the previous sections, the discussion now turns to the actions recommended to implement the strategy. These address an appropriate role for the District level Economic Development function, sector-wide and specific economic development initiatives, and policy directions for the District Official Plan.

5.1 Role The Phase 1 consultations elicited considerable discussion on the topic of for the whether the District level should play a larger role in Economic District of Muskoka Development, both generally and in the tourism sector. The sense was that there is a need for a larger role, with differing views on what the scope of that role should be and how it could be implemented.

In response, the Phase 2 Preliminary Directions Report outlined several organizational structures for delivery of a larger role by the District. Discussion through the Phase 2 consultations revealed resistance to any significant leadership role at the District level, but support for involvement in facilitating collaboration across Muskoka, and for a research responsibility. A recurring comment was that it is premature to commit to any particular organizational structure before community buy-in to a Vision.

Based on comments provided through a series of sector meetings, public meetings and written submissions, it appears that there is general consensus on a District function centred on the view that economic development efforts in Muskoka would be more effective if the District were to take on a larger role focused on collaboration, communication and coordination. Responses to issues affecting all of Muskoka (e.g., labour supply, transportation, training, attainable housing, diversity) were seen as more effective if they would be coordinated to have a "whole of Muskoka" perspective. A research function providing insight into these and other cross-District issues was also seen as important.

With regard to a District role in tourism management, the province's release of the Sorbara Report on Tourism Competitiveness (Discovering Ontario: A Report on the Future of Tourism) is prompting new consideration of how to structure tourism destination management organizations (DMO's), and how to implement destination marketing fees (DMF's).

The Report recommends creation of regional Destination Marketing and Management Organizations (DMMO'S) with comprehensive responsibility

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for both the marketing and management functions. Formation of such a DMMO for an area including Muskoka would respond to the issues and gaps identified through this Economic Strategy study.

The District has indicated it will work with the Muskoka Tourism Marketing Association (MTMA) and the Province to explore how this might be implemented for Muskoka. The Strategic Action Plan therefore leaves consideration of roles and organizational structures for tourism management to be determined through those explorations.

In light of these outcomes, the next question becomes what is the most appropriate role for a District level Economic Development function. Based on the views and priorities expressed through the Phase I and 2 consultation sessions, the following roles are suggested as being the most appropriate: • Articulation of a Vision for the District, one that can be embraced by all area municipal and other stakeholders and community members; • Supporting collaboration, coordination and communication among area municipal and other agency stakeholders in economic development in Muskoka; • Facilitate the development of a consolidated "Muskoka Innovation and Growth Centre" incorporating a new "Muskoka Innovation Enterprise Centre" to better support small business growth, creativity and innovation; and, • Providing benchmarking and issue-oriented research.

This role is intended to complement, not duplicate, the existing economic development efforts by the lower tier municipalities and other economic development stakeholders. Core responsibilities for the economic development function would address: • Facilitating the identification of common high level goals and priorities for economic development with lower tier municipalities and other agencies and developing strategic partnerships to achieve these goals and priorities on the regional basis expected by funding agencies; • Collaboratively defining and facilitating initiatives that address issues affecting the whole of the District or extending across two or more area municipalities (e.g., a cultural asset mapping and cultural planning initiative, attainable staff housing, workforce development, labour recruitment, etc.); • Collaboratively defining and implementing research and analysis priorities in support of cross-municipal economic development

34 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

initiatives (e.g., industry sector cluster analyses) and the provision of research, data and analysis describing key aspects of the District economy and demography; • Facilitating a discussion with area municipalities and industry to identify product types and locations where "centres of excellence" could be created; • Definition of performance indicators with which to monitor progress towards economic development objectives and progress reporting, perhaps with annual "Report Cards"; • The creation of a web-based communications clearinghouse to monitor and distribute information on breaking trends or new initiatives in area municipalities; • Proactively advocating to Provincial Ministries on issues affecting economic development in Muskoka; • Raising the profile of Muskoka's business successes; • Developing competitive benchmark comparisons between the costs of operating a business in Muskoka versus other jurisdictions; • Explore and implement new media technologies for promoting the District; and • Coordinating and facilitating the other economic development initiatives addressed in the Economic Strategy.

Fulfilling this function will require added capacity in the Planning and Economic Development Department. Currently, the economic development function has no dedicated staff resources to deliver any services beyond publication of occasional District profile materials or to fulfill any new coordination or research responsibilities. The function's annual budget is in the order of $6,000.

If the District is committed to fulfilling the above functions, and given the current lack of resources available to dedicate to any expanded function and the need to interact with area municipal manager or director level peers, it is recommended that the District function be resourced by investing in a new Director level staff position, possibly supported by a shared junior planner/analyst position. The senior position would be responsible for the liaison and collaboration functions described above, for directing research activities, and being the point person for implementing development initiatives coming out of the Planning and Economic Development Department, or for prompting action by other District agencies. The junior position would be primarily responsible for completing and communicating research results.

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A number of directions and actions are recommended to implement the Economic Strategy. These are presented below, grouped by sector-wide initiatives first, then by recommendations specific to each sector. Performance indicators are identified as tools to be used for measuring the Strategic Action Plan's achievement of results. Data sources are identified in brackets.

5.1.1 Sector-Wide It is recommended that the District of Muskoka implement the following Initiatives actions in support ofthe Economic Strategy:

Vision • Develop a clear Vision for Muskoka; • Develop Vision-driven criteria, including sustainability and economic development elements, with which to evaluate recommendations to Council, and apply them in all staff recommendation reports to District Committees.

Collaboration and Coordination • Build more collaboration and coordination amongst municipalities and other economic and tourism development stakeholders and agencies in Muskoka through an expanded economic development function, as described above.

Performance Indicators • Number of economic development projects collaborated upon with other stakeholders; • Dollar value of District funds committed to economic development projects with other stakeholders vs. the total dollar value of leveraged funds on these projects; • New jobs and tax revenues attributable to business growth arising from collaborative projects.

Entrepreneurship, Innovation and Small Business Growth A District commitment to supporting small business growth would be implemented by the following actions: • Explore a partnership with Bracebridge and the Ontario Ministry of Economic Development and Trade (MEDT) in supporting the Muskoka Small Business Centre (MSBC). [Note that the Small Business Centre function is most commonly funded jointly by an upper tier municipality and MEDT]; • Consider the consolidation in one location, under one banner (e.g., "The Muskoka Innovation and Growth Centre" or MIGC) the offices of

36 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

the MSBC, the Muskoka Community Futures Development Corporation and the Muskoka Community Network in order to maximize efficiencies in space utilization and the ability to provide shared use of expanded meeting/workshop/training space for all; • Consider a mutual program review among these agencies to minimize service overlaps and maximize respective abilities to deliver resources unique to their respective mandates; • Complement the streamlined efforts of the above agencies with a new "Muskoka Innovation Enterprise Centre" ("MIEC", modelled on Markham's "Innovation Synergy Centre") to provide advice, mentorship and access to capital services to established businesses seeking to expand through new product development. Collaborate with the Industrial Innovation Ontario North (lION) centre in North Bay to partner with such federal and provincial agencies/programs as the National Research Council's Industry Research Assistance Program (IRAP) and the provincial Ministry of Research and Innovation's Ontario Innovation Agenda and Market Readiness Program or their successors to fund the new Centre and its services.

These programs are funded with tens to hundreds of millions of dollars annually and are fuelling innovation and business growth in other municipalities across Ontario, but as yet have no presence in Muskoka; • Recruit mentors with business or cottage connections to Muskoka to provide advisory and possible angel investment capital through the "MEIC"; establish links with mentors across the province through lION's role as a Regional Innovation Network participant; • Ensure that access to mentor expertise includes experience in the tourism, "green", ICT, culture and entertainment sectors; • With experience and a pool of clients, expand the Centre's role to include an "Investment Network" linking investment-ready firms with potential equity investors (again modelled on Markham's "Innovation Synergy Centre"); • Consider the addition of a "Succession Network" to the Centre's services, whereby business owners seeking buyers for their operations could be linked to younger entrepreneurs or active retirees seeking to invest in an operating concern; • Identify, with input from industry and other stakeholders, apparent product or service gaps in Muskoka's industry sectors and flag them as potential business opportunities for exploration by Centre cl ients.

Malone Given Parsons Ltd. • Centre for Spatial Economics 37 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Perfonnance Indicators • Number ofnew business start-ups by industry in Muskoka (MIGC); • Number of business start-ups by industry still operating in Muskoka in five years (MIGC); • Investment capital matched with businesses through the "MEIC" (MEIC); • Jobs and assessment created by growth in Centre clientele (MIGC).

lriformation and Communications Technology • Continue to support and encourage the proVISIOn of improved broadband communications coverage, and expertise in working with internet technologies, to all parts of Muskoka; • Support and encourage the provision of broadband services to visitors to all Muskoka accommodations and downtowns; • Promote tete-working from Muskoka to out-commuting residents and to seasonal residents who could enjoy longer cottage stays given access to the internet; • Continue to support the Muskoka Community Network's community mapping initiative, ensuring that data gathered through the Muskoka Assessment Project's (MAP) implementation of the Premier-ranked Tourist Destination Workbook is incorporated into the map data base; • As foundations are completed, make reference to Muskoka's broadband access and Infonnation and Communications Technology expertise in branding and marketing imagery and messaging, perhaps referring to Muskoka as the "Wired" or "Digital" District; • Research and report on the businesses and agencies that could be part of an ICT clusters in Muskoka; • Assess the gaps inherent in the cluster and flag them as potential new business opportunities; • Support the development of gap-filling businesses by providing access to specialized expertise through the "The Muskoka Innovation and Growth Centre"; and, • Promote networking and collaboration among cluster members with a view to identifying further gaps and creating business growth.

Perfonnance Indicators • Growth in the extent of service coverage across Muskoka (MCN); • Number of accommodations providers offering internet web access (MTMA);

38 Malone Given Parsons Ltd. • Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

• Number of downtown locations offering wireless access to the internet (BIA's); • Employment and business growth in the ICT sector (Census Year, Statistics Canada; Annual Business Registry, Statistics Canada).

Cen~esofEXcellence • Facilitate discussions with area municipalities to identify product areas and locations where distinct "centres of excellence" could be created. One immediate area of focus should target a Hospitality Centre. Perfonnance Indicators • Number of "centres of excellence" developed; • Number of jobs attributable to visits to or growth in "centres of excellence".

Labour • Facilitate stakeholder discussions on labour recruitment initiatives to fill the labour gap. Perfonnance Indicators • Number of workers recruited from outside of Muskoka.

Attainable Housing • Foster a regulatory and business climate supporting the construction of more attainably priced homes; Perfonnance Indicators • Annual number of new attainable housing unit approvals and completions.

Transportation • Facilitate the exploration and implementation of solutions to improve transportation connections to rural and retail core employment locations. Perfonnance Indicators • Number of solutions put in place to provide transportation connections to rural and retail core employment locations.

Other Strategic Directions • Advocate to senior levels of government on issues affecting Muskoka's businesses; • Communicate economic development successes on a regular basis; • Promote Muskoka as a location where businesses are expanding on the District web page;

Malone Given Parsons Ltd. * Centre for Spatial Economics 39 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

• Explore opportunities to brand and market Muskoka as an attractive destination and place of business/employment through the use of new social media (e.g., YouTube, Facebook, blogs, etc.).

Perfonnance Indicator • Financial or program commitments to Muskoka from senior levels of government.

5.1.2 Sector-5pecific Natural Resources Sector Initiatives • Limit residential development in rural areas in order to reduce conflicts with forestry, agricultural and aggregate resource uses. • Support other municipal resolutions for road improvement funding or the eannarking of a percentage of crown land logging royalties to support road improvements.

Perfonnance Indicators • Annual funding from senior governments for road improvements; • Employment and business growth in the Agriculture, Forestry and Aggregates Extraction Industries (Census Year, Statistics Canada; Annual Business Registry, Statistics Canada)

Manufacturing and Transportation Sector • Promote Muskoka's growth expectations and assets and the advantages of operating a business in the District; • Research and report on the businesses and institutions in Muskoka that could be part of a "green' industry cluster extending from the local resource base (e.g., forestry) to exportable products and services, particularly with reference to needs emerging in the so-called "BRIC" countries (the high growth markets in Brazil, Russia, India and China); • Assess the gaps inherent in the Muskoka cluster and flag them as potential new business opportunities; • Support the development of gap filling and other "green" businesses by providing access to specialized expertise through the "Muskoka Innovation and Growth Centre"; • Promote networking and collaboration among cluster members with a view to creating growth through new, sustainable "green" or recreational business opportunities leveraging Muskoka's resources and market base to develop new products and employment e.g., remote home/energy systems management tools, high efficiency windows and other building components, winter and wind-tolerant solar systems, etc.;

40 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

• Continue to develop the Muskoka Airport as a node for aviation related businesses and/or a special development district; • Enhance communication of half load restrictions and road conditions to the transportation and construction sectors, perhaps with a status map on the District web site.

Performance Indicators • Land area absorbed for commercial/industrial use; • Number of new businesses at the Muskoka Airport and throughout Muskoka (Annual, Statistics Canada Business Registry); • Employment at Airport businesses and in the Manufacturing and Transportation sectors (Census, Statistics Canada).

Construction, Real Estate & Business Services Sector • Promote the lifestyle of working from a Muskoka cottage to lengthen stays in Muskoka. Promote, for example with publication ofa directory or a web page listing, the breadth and depth of business and professional service providers in Muskoka to other Muskoka businesses; • Research and report on the professional, scientific and technical services industry businesses that could be part of "green" and and/or design and innovation clusters; • Assess the gaps inherent in the Muskoka cluster and flag them as potential new business opportunities; • Support the development of gap-filling businesses by providing access to specialized expertise through the "The Muskoka Innovation and Growth Centre"; and, • Promote networking and collaboration among cluster members with a view to identifying further gaps and creating business growth.

Performance Indicators • Employment and business growth in the Construction, Real Estate & Business Services Sector (Census Year, Statistics Canada; Annual Business Registry, Statistics Canada); • Growth in the number of people working from home in this sector (Census Year, Statistics Canada).

Trade & Personal Services Sector • Research and report on the information, cultural and arts and entertainment industry businesses and related agencies and institutions that could be part of a culture cluster;

Malone Given Parsons Ltd. * Centre for Spatial Economics 41 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

• Assess the gaps inherent in the Muskoka cluster and flag them as potential new business opportunities; • Support the development of gap-filling businesses by providing access to specialized expertise through the "The Muskoka Innovation and Growth Centre"; • Promote networking and collaboration among cluster members with a view to identifying further gaps and creating business growth; • Facilitate policy development and programs to support aesthetic improvements to Muskoka's Highway 11 properties.

Performance Indicators • Dollar value of funding from government vs. private sources to support improvements to Muskoka's Highway 11 properties; • Employment and business growth in the Trade & Personal Services sector (Census Year, Statistics Canada; Annual Business Registry, Statistics Canada).

Public Sector • Participate in discussions with stakeholders to build upon existing post secondary educational institutions expansions and attract new academic and research programs in Muskoka; • Develop walkable and bikable communities and ensure that the multiple benefits of active transportation infrastructure are considered in development of an active transportation strategy; • Use FedNor's youth internship program as a means of creating employment and retaining Muskoka's youth in the District; • Strengthen the District's investment in economic development, as discussed in Section 5.1; and • Cooperate and collaborate on economic development initiatives with District and external stakeholders.

Performance Indicators • Increase/decrease of funding commitments to the Nipissing University and Georgian College Muskoka Campuses, and to new facilities for other institutions. (Yearly, Nipissing University and Georgian College Finance Departments); • Increase/decrease in enrolment at the Muskoka Campuses (Yearly, Nipissing University and Georgian College Offices of the Registrar); • Number of new programs or course offerings at the Muskoka Campuses (Yearly, Nipissing University and Georgian College

42 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRA TEGIC ACTION PLAN

Offices of the Registrar);

• Number of negotiations with post-secondary educational institutions to attract new academic and research programs; • Annual number of new seniors housing unit application submissions, approvals and completions; • Annual number of new attainable housing unit application submissions, approvals and completions; • Annual dollar value of District and area municipal capital infrastructure investment in sidewalks, trails and public spaces; • Number of kilometres added in new active transportation infrastructure; • Number of placements using FedNor's youth internship program (Yearly, Muskoka Futures); • Annual investment by the District of Muskoka to support economic development programs vs. jobs and assessment growth; • Employment and business growth in the Public Sector (Census Year, Statistics Canada).

5.1.3 Tourism Initiatives The following initiatives are recommended specific to tourism: • Collaborate with the Muskoka Tourism Marketing Agency (MTMA), the North Muskoka Resort Group (NMRG), other Muskoka stakeholders, regional partners and the province to define and implement an effective tourism management entity with a sustainable funding program for tourism management and marketing through a new DMMO; • Charge the management entity with the task of defin ing and implementing a tourism development and marketing strategy, with consideration of the issues, gaps and opportunities identified above and in the MAP Report; • In the interim assist the MTMA in putting a consistent brand image and message in place for the lead-up to the G8 Summit in 20 I0 so that the Muskoka "story" is ready for the prime time platform that event will provide; • Ensure that the marketing story includes reference to the breadth and depth ofthe District's assets, including:

o The Muskoka Airport;

o The District's assets supporting eco-adventure tourism, including its waterways, waterfalls, trails networks, and the Georgian Bay Littoral Biosphere Reserve; and

Malone Given Parsons Ltd. * Centre for Spatial Economics 43 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

o The District's arts and cultural assets, culinary experiences, spa and wellness offerings and business travel infrastructure; • Pending definition and ramp-up of a new tourist DMMO, track gaps in the tourism product and support sectors, and input these as potential business opportunities to the Muskoka Innovation and Orowth Centre; • Promote public understanding of the importance of tourism and cottaging to the District economy, in part by collaborating with the MTMA, Chambers of Commerce, BIA's and other stakeholders to define and implement a "Welcome to Muskoka" hospitality messaging and skills initiative prior to and continuing past the build up to the 08 summit, and targeting both tourists and seasonal residents; • Support the current community mapping initiative by the Muskoka Community Network by providing a District web link or host service, base mapping and data layers, and technical advice. Ensure that the atlas incorporates tourism asset data (specifically including arts, recreation, entertainment and other cultural facilities) generated through MAP, and is leveraged and promoted as a resource supporting tourism to and within Muskoka; and • As the project matures, use it as the platform for cataloguing the geography and character of the District's arts, design and innovation industries, and cultural heritage networks, and a foundation for a cultural plan to preserve, enhance and market the District's cultural resources.

Performance Indicators • Number of available rooms in Muskoka's roofed accommodations stock; • Increase/decrease in person visits to Muskoka by Place of Residence (Yearly, Ministry of Tourism); • Increase/decrease in visitor spending and spending per capita in Muskoka by Place of Residence (Yearly, Ministry of Tourism); • Percentage change for activities on Trips among Overnight Visitors (Yearly, Ministry of Tourism); • Number of days each year in which events are held in Muskoka; • Employment and business growth in the Tourism Sector (Census Year, Statistics Canada; Annual Business Registry, Statistics Canada)

5.1.4 Resorts Initiatives For the Resorts sector: • Recognize the redevelopment of resort properties using the fractional ownership model as a reasonable and viable means of maintaining a

44 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTIONPLAN

stock of accommodations units available to both their owners and the travelling public, and enabling capital transfer and reinvestment; • Continue strong Official Plan policies to support appropriate resort property redevelopment, limiting higher density permissions to projects that maintain a significant commercial accommodations component supplied through units in a rental pool, but perhaps easing restrictions on conversion of smaller resort properties (see Official Plan policies below); • In light ofthe recent Sorbara Report, encourage the Province to convene a "Resort Re-investment Capital Summit" between property owners, lenders, planners and lawyers to identify solutions to the barriers impeding re-investment in resort properties and retaining tourist commercial functions. Facilitate the implementation of the identified solutions; and • Build on the data gathered through the District's Second Homes Study by undertaking primary survey research into the characteristics of fractional unit developments and the behaviours of their owners and renters. Important variables to explore would include:

o The extent to which units can be and are made available to the travelling public through a rental pool arrangement;

o The extent to which property and lor activity access management is on or off-site;

o Amenities and activities provided for on-site;

o Frequency of occupation by owners and renters through the seasons of the year;

o Unit owner's/renter's spending during their stays and any variation through the year (for comparison to expenditures by visitors using other forms of resort commercial accommodation); and

o Activities engaged in by users/ renters of fractional units (again for comparison to behaviours of other visitors to Muskoka).

Performance Indicators • Number of Tourist Resort Commercial Accommodation (TRCA) properties; • Dollar value of construction investment in TRCA properties; • Annual number of new fractional units; • Increase in assessment value for TRCA properties.

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In addition to the foregoing performance indicators, higher level indicators that can be used to measure the effectiveness of the recommended strategy include: • Percentage increase in household income relative to the Province of Ontario (Census Year, Statistics Canada); • Percentage change in the commercial and industrial assessment base versus residential assessment base (Yearly, Lower tier municipalities); • Percentage increase in population base relative to the Province of Ontario (Census Year, Statistics Canada); • Percentage increase in employment by place of work relative to the Province of Ontario (Census Year, Statistics Canada); • Percentage of the labour force with Post Secondary education relative to the Province of Ontario (Census Year, Statistics Canada);

5.2 Muskoka Official As the upper tier municipality, the District has the authority and obligation Plan Policy to craft an Official Plan to which area municipal Official Plans must Directions conform. This of course creates the responsibility and opportunity to define the context and policies that can implement the strategic vision, and, to the extent practical using the land use planning framework, enable the realization of its related initiatives and objectives.

Recommended Official Plan policy directions are organized under sector wide, sector-specific, tourism sector, and resorts sector headings.

5.2.1 Sector Wide The OP policy directions recommended in support of the identified Directions economic development initiatives are to: • Explore policy directions to further reduce the impact of human activity on Muskoka's natural environment, for example to encourage the adoption of such new standards for development as Energy Star or LEED (and other) criteria; • Continue to support the Muskoka Airport, explore development options in its vicinity and ensure a policy framework exists which allows for future development, as appropriate; • Continue to support and encourage infill and compact development, consistent with the Provincial Policy Statement (2005) and the District of Muskoka Phase 2 Growth Strategy; • Require local Official Plans to permit accessory/secondary dwellings in residential designations in urban centres as a means to increase the attainable housing stock; and

46 Malone Given Parsons Ltd. * Centre for Spatial Economics 5.0 STRATEGIC ACTION PLAN

• Encourage the accommodation of private retirement/assisted living homes in residential and downtown/near downtown areas. 5.2.2 Sector-Specific Natural Resources Sector Directions • Limit rural residential development in order to reduce conflicts with forestry, agricultural and aggregate resource uses. Manufacturing and Transportation Sector • Continue to accommodate a variety of industrial uses on employment lands in their Official Plans.

Construction, Real Estate & Business Services Sector • Require local Official Plans to permit secondary dwelling units in residential designations in urban areas; • Continue to encourage multi-residential developments in urban areas and establish targets for this type of development; • Support residential intensification throughout all Urban designations; and • Continue to encourage permissive home based business policies, where appropriate, to accommodate businesses in the Real Estate & Business Services industries.

Trade & Personal Services Sector • Continue policies for the Highway II Special Character Area and support efforts by the Town of Gravenhurst to implement a Special Character Area.

Public Sector • Continue to permit public (including health care and educational) uses in employment and commercial designations; and, • Encourage lower tier municipalities to accommodate appropriately scaled and located childcare facilities in residential designations in their Official Plans.

5.2.3 Tourism Directions It is recommended that the Official Plan continue to include policies to: • Highlight the economic importance of the District's asset base, tourism and cottaging; • Identify the vitality, attractiveness and quality of place in area municipal downtowns as key assets in tourism and in attracting creative talent; • Protect public access points to Muskoka's waterways and trail networks;

Malone Given Parsons ltd. * Centre for Spatial Economics 47 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

• Enable the approval of new tourism infrastructure; • Support the provision of more attainable housing. • Encourage accessory/ secondary units in urban centres as a means of adding to the attainable housing supply; and Encourage lower-tier municipalities to accommodate art studios as a home occupation in residential areas. 5.2.4 Resorts Directions The Muskoka Official Plan can be improved to facilitate appropriate resort redevelopment and expansion. Recommended directions include: • Consider refined directions identified through a "Re-investment Summit"; • Consider tests and requirements ensuring that resort properties remain commercial over the long term and cannot take inappropriate advantage of provisions enabling higher densities on commercial properties. New approaches to consider might include:

o Requiring specific conditions of approval to lock in and support commercial use of new units at commercial densities, including occupancy restrictions ensuring that a minimum proportion of units is available at all times to the travelling public, the mandated creation of a rental and site management function through a condominium corporate structure, and/or participation in a vacation exchange network, etc., as implemented through condominium agreements to be vetted by the municipality as an approval condition;

o Consider the application of a site size threshold below which the conversion of resort commercial to residential uses could be considered; and,

o Minimum site areas and water frontages to be dedicated to recreational amenities and common access. • Consider encouraging a development permit system for existing resort properties to implement the above directions and reduce approvals timelines for commercial redevelopment projects; • Consider designating larger resort properties as "Employment Lands" subject to restrictions on conversion to other uses only upon a comprehensive review, to protect these properties from residential (cottage) conversion pressures; • Explore approaches to enabling small scale (e.g., 10 to 40 suites or cabins) eco-resort development in remote areas; and • Encourage, if not demand, new larger scale resort proposals to incorporate staff housing.

48 Malone Given Parsons Ltd. * Centre for Spatial Economics 6.0 CONCLUSIONS

6.0 CONCLUSIONS The Phase 2: Strategic Action Plan report provides answers to the six questions posed at the completion of the Phase 1: Background Report as stated in Section 2.0:

1. What is the most effective role for the District level Economic Development Function? Should it be greater than it is today? How should it interact with local municipal, other agency and private sector functions and initiatives?

The recommended role for the District level Economic Development function is: • Articulation of a Vision for the District, one that can be embraced by all area municipal and other stakeholders and community members; • Supporting collaboration, coordination and communication among area municipal and other agency stakeholders in economic development in Muskoka; • Facilitate the development of a consolidated "Muskoka Innovation and Growth Centre" incorporating a new "Muskoka Innovation Enterprise Centre" to better support small business growth, creativity and innovation; • Providing benchmarking and issue-oriented research; and, • Taking a lead role, befitting an upper tier municipality, in crafting District level Official Plan policies to achieve key economic development and related objectives.

2. Is a new model for managing tourism development in Muskoka required? What might it look like? What would its mandate be and how would it be funded and delivered?

A more effective and strategic model for managing tourism development and marketing and a sustainable funding program in Muskoka is required. The structure, mandate and geographic scope of an implementing Destination Marketing and Management Organization (DMMO) is to be defined by the Province in collaboration with the Muskoka Tourism Marketing Agency, the North Muskoka Resort Group, other Muskoka stakeholders and regional partners.

Malone Given Parsons Ltd. * Centre for Spatial Economics 49 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

3. What are the implications of the declining number of waterfront resort properties? Of the apparent market shift to more fractional recreational units? What can or should planning policies and lor other initiatives do to improve the competitive context for this type oftransient tourist accommodation?

The number of waterfront resort properties is in decline because changing market preferences and increasing operating costs are making these properties non-economic. Reinvestment in capital improvements is not viable. This trend leaves current owners with capital trapped in high land values and a non-liquid asset.

There are several implications of the market shift to more fractional recreational units. Most importantly, market interest in this form of ownership suggests they could represent a means of maintaining a supply of available accommodation units to visitors to the District.

The Economic Strategy highlights the issues and opportunities around these questions, and recommends initiatives and policy directions that would consider easing restrictions on conversions of smaller properties to residential (cottage) use, and enabling redevelopment on others at commercial densities only if units continue to be made available to the travelling public. Additional research into the characteristics of fractional projects and the behaviors of owners and renters is recommended.

4. What are the implications of Muskoka's aging population and migration patterns. Does this represent an opportunity for the health care and retirement/assisted living sectors, or a liability to the local public health system?

The aging population and migration of new retirees to Muskoka represent an opportunity for the health care and retirement/assisted living sectors because of their need for health care services and the generally higher skills and pay scales associated with the provision of these services.

50 Malone Given Parsons Ltd. * Centre for Spatial Economics 6.0 CONCLUSIONS

5. Are there particular assets that could be added or further leveraged to promote Muskoka's attractiveness and economic growth?

There are a number of assets that can be further leveraged to promote Muskoka's attractiveness and economic growth. These include: • The Muskoka Airport; • Muskoka's natural heritage, waterways, waterfalls, trails networks, and the Georgian Bay Littoral Biosphere Reserve; • The District's arts and cultural assets, culinary experiences, spa and wellness offerings and business 'travel infrastructure; • The presence of Nipissing University and Georgian College and the more recent announcement of the new University of Waterloo campus in Huntsville; • Expanding broadband media networks; and, • Although with some supply constraints, a skilled and growing labour force.

The most significant new assets recommended In the Economic Strategy include: • An expanded District level economic development function; and, • A new Centre providing business advisory and access to capital services, and a conduit for senior government funds in support of product innovation and commercialization to support small business growth.

6. What opportunities and challenges confront specific sectors? What policies in the District Official Plan can support such initiatives? What measures will provide the best indicators of health or growth?

The Economic Strategy describes issues, gaps and opportunities on both a sector-wide and a sector specific basis. It identifies actions to respond to them, with supporting policy directions for the District Official Plan. Performance indicators for measuring progress are recommended on the same sector-wide and sector specific bases.

Malone Given Parsons Ltd. * Centre for Spatial Economics 51 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

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52 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

APPENDIX A:

Sector and Stakeholder Consultation Session Notes

Malone Given Parsons Ltd. * Centre for Spatial Economics MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

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Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Table of Contents

Consultation Process A-I

Consultation Notes Tourism Sector A-3 Resorts Sector A-6 Natural Resources Sector A-9 Manufacturing and Transportation Sector A-II Construction, Real Estate & Business Services Sector A-I3 Retail Trade & Personal Services Sector A-I5 Public Sector A-17 Area Economic Development Officers A-20

Stakeholder Follow-Up Sessions (prepared by District of Muskoka staft)

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A-ii Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Consultation Consultation sessions with key sector stakeholders were held on February th th Process 26 and 27 , 2008 at the District of Muskoka Administrative Centre. The five sector sessions over the two day period were with the: 1. Tourism Sector; 2. Natural Resources Sector; 3. Construction, Real Estate & Business Services Sector; 4. Trade & Personal Services Sector; and 5. Public Sector

Although questions varied slightly by sector, they generally focused on the following: • Identifying key issues in the sector; • Determining the necessary actions to address the issues; • Identifying key opportunities to develop the sector; • Determining the necessary actions to realize the opportunities; and • Identifying the most critical economic development priorities that will have the largest impact on development for the sector.

A consultation with the Resorts Sector was also facilitated on May 21 st, 2008 at the District of Muskoka Administrative Centre. Five questions that were asked by the consultant included: 1. What are the current trends influencing resorts? 2. What are the benefits of, and concerns about, alternate ownership arrangements? 3. Are there other perspectives on alternate ownership arrangements? 4. What is the biggest barrier to the ongoing viability of the resort sector? 5. How should municipal official plan policy respond to these matters?

A consultation with economic development stakeholders was facilitated by th District ofMuskoka Planning staffon April 14 , 2008. The key economic development priorities identified from the sector consultations were presented to the group. Two key questions were then asked to the stakeholders, as follows. 1. What is the most effective role for the District of Muskoka in economic development? 2. Is a new model needed for managing tourism in Muskoka? If so, who should manage it? And how?

In the fall of 2008, the Phase 2: Preliminary Directions Report was presented to economic development and business community stakeholders. A public Open House was also held in the fall. The presentations highlighted key opportunities for the District, the economic development and tourism role for the District and Official Plan Policy directions. Feedback and other ideas were shared by the participants.

Malone Given Parsons Ltd. * Centre for Spatial Economics A-1 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

The following pages provide a summary of the organizations represented at the stakeholder consultations and the comments received from the discussions.

A-2 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Muskoka Economic Strategy Phase 2: Strategic Action Plan Tourism Sector Consultation th February 27 , 2008 8:30am - 11 :30am

Consultation Notes: Attendees • Ministry of Tourism - Regional Services Branch • RelMax and Muskoka Lakes Association • Muskoka District Councillor Township of Muskoka Lakes • FedNor • MTMA, MLMK, MPG • Muskoka Heritage Place, Town of Huntsville, and MTMA • MTMA, Muskoka Highlands • Hidden Valley Highland Ski Area • MTMA, Muskoka Futures, MCN • Santa's Village • Hammond Transportation Ltd.

Media reporting ofweather can be extreme and misleading Climate change may affect activities and programs High number of power outrages Border crossing restrictions Strength of the Canadian dollar and Canadians now traveling elsewhere Need for collaboration and to consider what is good for tourism in Muskoka not just individual operations Chambers of Commerce are doing external tourism marketing - need a coordinated approach Events are fractured, they used to be coordinated by committees of volunteers Many events throughout the year, but they are not communicated among tourism businesses The multiple business development organizations are duplicating efforts Lack of tourism offerings The quality ofthe customer service is an immediate concern Insurance concerns regarding ice fishing Seasonality and lack ofrecreational activities between November - April Aesthetic appeal of the downtowns Perception of Muskoka being expensive Perception by the Province that Muskoka is ok and the lack of funding Muskoka Tourism Funding partners get a voice in the organization and the marketing attention Able to buyout if you don't see the benefit to your own business Lots of money goes to the visitor centres Small organizations and attractions need visitors Understanding that we are competing with Toronto, Ottawa, Niagara for tourism spending

Malone Given Parsons Ltd. * Centre for Spatial Economics A-3 MUSKOKAECONOMICSTRATEGY Phase 2: Strategic Action Plan

Actions: Tourism Sector needs to collaborate Staff are needed to do broader scale tourism promotion Destination Marketing Fee (DMF) critical for better marketing programs Look at models for tourism management District should provide more funding

Opportunities Make Muskoka a 12 month tourist destination Develop a program where employers pay for an employee's tuition as an incentive Capitalize on the fractional ownership trend because these owners are not just in Muskoka for the summertime and it brings new people into Muskoka Communicate MAP project results Develop more big events for Muskoka Regional collaboration - need a leader with a mandate and political will Amenities should be the driving force to bring tourists into Muskoka Those involved in tourism in Huntsville are aggressive on destination marketing - Could use this aggressiveness regionally Develop collaboration for external marketing Muskoka Airport is under-utilized Bringing events into the resorts Improve government relationship with the tourism industry Lots of visitors here who are not in the resorts, but may be staying in cottages Scheduling training programs for the tourism season Link labour and housing with the University A new pilot project is established that certifies high school students employed in the resorts and hospitality industry Educate the general public that tourism jobs can pay well Develop a Hospitality Institute "Green" Tourism Industry is untapped Develop an Eco-tourism Institute Provide educational programs for the arts Environmental marketing such as being known as an area where plastics bags have been removed Direct Gas Tax towards transit initiatives not roads Develop active transportation strategies Communicate the existence and location oftrails throughout the District Promote small footprint tourism Develop broadband access across the District - rural areas are not fully serviced and this affects tourism operations Understand that new cottagers at one time came here as a tourist, and use this fact Capitalize on the snowmobile traffic Provide consistent hours for tourism businesses

Actions: Develop an overarching and stable tourism entity representing all of Muskoka A-4 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Develop a destination tourism plan Develop sustainable tourism funding from different partners Get resorts to open during the winter Develop a destination marketing fee Bundle tourism products Investigate regional economic development models Develop Centres of Excellence in specific areas Be accountable with target markets and monitor goals Make amendments to zoning bylaws to accommodate more housing such as secondary apartments Educate high school students about the opportunities in tourism Increase the profile of tourism as a career opportunity at the Local Training & Adjustment Board Enhance recreational trails Develop new events such as ice fishing derby to attract more visitors Work on transportation issues Continue to work on promoting sports tourism

Key Priorities 1. Examine the models to establish a Destination Management Organization and develop a plan 2. Develop a model that ensures regional collaboration and coordination in tourism development and marketing to reduce the duplication ofeffort in economic development 3. Pursue options to market tourism based on the natural environment, including eco-tourism and "green" economy 4. Pursue year-round festivals and events

Malone Given Parsons Ltd. * Centre for Spatial Economics A-5 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Muskoka Economic Strategy Phase 2: Strategic Action Plan Resorts Sector Consultation May 21 st, 2008 1:00pm - 3:00pm

Consultation Notes: Attendees: Muskoka Lakes Association The Landscapes R.G. List Consulting Ltd. MTMA Scotia Bank Inn at Christie's Mill Pinckard Bailey Professional Corporation

What are the current trends influencing resorts? Change in family visitation patterns - In the past, fathers would often work during most ofthe summer while mothers and children would spend their summers in Muskoka. Presently, it is typical for both parents to work, making family vacations shorter. Mini-vacations are becoming more attractive (ie. girls weekends, couples spa vacations etc). Vacationers are much more influenced by the long-range forecast, and tend to cancel bookings if the weather is expected to be unfavourable. The strength ofthe Canadian dollar has resulted in less American tourists coming to Muskoka and in Canadians being able to travel. Demand for luxury accommodation is increasing substantially. Demand for motor boating opportunities at resorts is being replaced by a demand for kayaking and canoeing.

What are the benefits of, and concerns about, alternate ownership arrangements? It was acknowledged that "fractional ownership" is recognized as a form of ownership, not a type of land use. The term "fractional ownership" is used throughout this summary to refer to a variety oflegal arrangements of fractional ownership developments. However, in the Muskoka context, it is important that the land use be certain. Privately serviced multiple residential development is not permitted in any land use designation in Muskoka. In addition, multiple residential development is not permitted in the Waterfront designation. This form and density of development is only permitted for tourist commercial use. An effective way to ensure these types of developments remain commercial and do not convert to residential use is needed. The most notable benefits of fractional ownership developments are: o Provision of up-front capital opportunities for upgrades to existing resort properties that are unavailable from traditional lending institutions; o Provision of a constant turnover ofguests; o Extension ofvisitation year-round; o Spending by owners of fractional units varies from that of traditional resort visitors (ie. furniture, art, etc); o Improved occupancy rates, as guests return year after year; and o Opportunities exist for exchange programs (within Canada and internationally). Some ofthe concerns surrounding fractional ownership developments are: A-6 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSIONNOTES

o Often perceived as higher density residential development as opposed to commercial; o Perceived as offering fewer employment opportunities when compared to traditional resort developments; and o To create a fractional ownership development, all debt must be eliminated from a property. This works for smaller parcels ofland, but presents the need to divide large properties into smaller parcels.

Are there other perspectives on alternate ownership arrangements? Visitors are taking shorter vacations more frequently than in the past, and fractional ownership developments are more affordable than traditional cottages with less work. If Muskoka wants to be in the tourism business, resorts need to be able to access capital in order to upgrade their facilities in a timely manner in order to meet the changing demands of the market. Fractional ownership appears to offer that ability to access capital. Price point is very important for fractional ownership developments because lending institutions will not finance this type of purchase. Perceptions oftransient visitors versus owners of recreational properties vary. Some are ofthe view that those who own properties in Muskoka are more attached to the area, are more involved in the communities, and may generate more spending in the area. In contrast, others are ofthe opinion that transient visitors may be the ones who keep returning to Muskoka because they have an attachment to the area although they do not own a recreational property and could vacation anywhere, and that these individuals are more likely to contribute to the local economy. Concern was raised that fractional resorts are assessed as residential properties. It is Muskoka staffs understanding that these properties are assessed as commercial. (Muskoka staffwill follow up on this item) The question was raised about whether multiple owners of a fractional resort unit have individual voting rights. (Muskoka staff will follow up on this item) The question was also raised as to what constitutes the "vacationing and travelling public". Is it enough to have constant turnover of owners or does there need to be a rental program, whether it be a "pool" or something else? Although it was agreed that central management should be required, is it necessary that it be "on-site"? Ifthere is exclusive use or ownership, would it be commercial since there may not be a return on capital invested. However, if it is available for trade through an exchange program, does this constitute availability to the traveling public?

What is the biggest barrier to the ongoing viability of the resort sector? Global economy - must compete with attractions worldwide. If ownership options are provided for tourists, it would increase commitment to vacationing in Muskoka. The uniqueness of the Muskoka tourist experience faces much greater competition - need new products in the market to retain our status as a destination. Marketing budget for Muskoka Tourism needs to be increased in order to compete on a more global scale - the Destination Marketing Fund (DMF) approach is one option to consider. More market research is needed to better understand exactly what visitors want in a vacation and we need to act quickly to "re-tool" Muskoka's tourism facilities to meet that need. All price points need to be considered to ensure a stable and diverse tourism industry. Many tourism operators have noted that as weather information and forecast are so readily available to the general public, they have noticed an increase in the number of cancellations when the long-range weather forecast is not favourable. Malone Given Parsons Ltd. * Centre for Spatial Economics A- 7 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

The seasonality of certain aspects of Muskoka's tourism industry acts as a barrier to the expansion of it into the shoulder seasons. Many restaurants, shops and services are closed during the shoulder seasons and some during the summer, which leaves visitors to Muskoka in these times with fewer options. Since the real estate boom of 198911990's, the value of land has outstripped the business value of the resort properties. Land rather than businesses are being purchased and as a result, inventory is being lost. Due to this disparity between business value and land value, resort owners have turned to other ownership options to raise capital necessary to rejuvenate aging infrastructure.

How should municipal official plan policy respond to these matters? Muskoka's existing policies related to down-zoning oftourist commercial properties should remain in place. Tourist commercial properties are a finite resource and should be preserved and protected. The market requires that resorts be environmentally sustainable. Many resort operators have noted that their customers are increasingly expressing a concern for the environment, and are vacationing in Muskoka because of the natural landscape. This should be reflected in the Muskoka Official Plan. Resorts need to be able to access capital in order to upgrade to meet current market demands, and Muskoka policy should support this endeavour by allowing portions ofproperties to be severed, while remaining one with the 'parent parcel' for planning purposes, to allow the smaller portion to be re-financed. This would allow fractional ownership to apply to larger developments and properties. Market demand changes constantly, and a quicker development approval process would assist resorts in meeting these demands. Municipal polices respecting private communal services need to be re-examined in order to capitalize on the 'eco-tourism' trend in order to facilitate remote resort development. Muskoka policy should include tests and requirements to ensure that resort developments remain commercial over the long term. These could include such items as including wording to this effect in condominium agreements as well as including the requirement for any changes to the agreement to be approved by the municipality, as well as ensuring that zoning does not permit residential development. The Muskoka Official Plan currently requires an Official Plan Amendment be completed prior to the establishment of a new resort. This policy should be reviewed, as it may be too restrictive.

A-a Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Muskoka Economic Strategy Phase 2: Strategic Action Plan Natural Resources Sector Consultation t February 27 \ 2008 1:00pm -3:00pm

Consultation Notes: Attendees • Brooklands Farm • Muskoka Land Stewards

Not recognizing the importance of the environment in economic development initiatives Not recognizing the importance of the agricultural lands in Muskoka Growth in the rural area has a negative impact on forestry and agriculture The average age of the farmer is increasing Agriculture and forestry industries have separate issues Need to preserve the Muskoka landscape The marketing problem with the Forestry Stewardship Council's (F.S.C.) certified label Using employment is not a fair measurement of the forestry industry because logging is becoming less labour intensive A tree cutting by-law is needed to ensure sustainability (unsustainable forestry operations are coming to Muskoka because there is no a by-law) Agriculture product is difficult to export out of Muskoka Negative perception from the general public regarding loggers Maple outgrows poplar in this area and therefore the production of biofuel has a long way to go before it can be viable The demand for maple wood has changed as the economy changed. Agricultural policies at different levels of government creates confusion Difficult to find labour, and labour moves to the construction industry (season only 7-8 months) Red tape - entrance permits - opening up road allowances for loggers Logging penalties not big enough

Actions: Push to encourage farming in Muskoka Keep a percentage of land designated for agriculture and forestry use in Muskoka Loggers need access to good roads - they need to be maintained and built at a better standard Seek immigrant labour for help Need to focus on quality not quantity

Opportunities Growing consumer interest in buying local or quality products Loggers are selling hard maple wood globally (for furniture, floors and white paper) Educate the public on sustainable farming practices

Malone Given Parsons Ltd. * Centre for Spatial Economics A-9 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Develop identification of Muskoka products at farmers markets Push more wood products into the F.S.C. market and purchase in that market There are good growing conditions here in Muskoka Understand that food pricing is cheap in comparison to other parts of the world Fix roads for lumber trucks - Provincial funding collected as a result of Crown land forestry is needed to make these improvements Expensive to become F.S.C. certified but quality is more important than quantity Muskoka's wood is a high quality product Develop curriculum on understanding agricultural opportunities Discourage the change of agricultural lands to other land uses There are good pockets of farm land in Muskoka and they should be protected Look globally for economic opportunities not just to the U.S. market

Actions: Top down push to keep agricultural designations Link agriculture with the tourism sector (i.e. agri-tourism) Have a Tree Cutting Bylaw - this would make logging sustainable District should recognize F.S.C. certified product and use these products Advocate to the Province on logging issues Support other municipalities resolutions for road improvement funding and return some of the logging royalties from Crown land to the area for road improvement Develop niche agriculture Develop an agricultural land use map Enact Top-Soil Removal Bylaws Enact Pesticide Use Bylaws Conduct soil testing on agricultural lands - Stewardship Rangers could do this

Key Priorities 1. Enact by-laws to regulate top soil removal and tree cutting 2. Support farmers markets that sell local product 3. Support and use Forestry Stewardship Council (F.S.C.) certified products to recognize sustainable logging practices 4. Ensure maintenance of roads for the heavy equipment necessary for the forest industry

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Muskoka Economic Strategy Phase 2: Strategic Action Plan Manufacturing & Transportation Sector Consultation th February 27 , 2008 3:30pm - 5:30pm

Consultation Notes: Attendees • McLaren Press • Simcoe Block • FedNor

Long delivery times with the transportation of goods Muskoka's docks are deteriorating and use ofthem is being restricted, which affects service level and cost The manufacturing product being delivered is time sensitive and manufacturers need clear roads for deliveries, especially to remote locations, and these costs are increasing Road maintenance Trucks stuck on roads because ofbad conditions Load restrictions on roads prevent filling trucks to capacity Road restrictions aren't advertised all the time and can change No consistent supply of entry-level labour Difficult to expand without available labour Competing wages - employees leave for better paid jobs High school technical programs have declined Sponsoring apprenticeships - older skilled tradesmen may not have the certification and therefore can't sponsor Finding someone who will register you as an apprentice Lots ofpaper work for the employer in the apprenticeship program Journeyman has to sponsor an apprentice and document the training Limited IT service in Muskoka and service is critical for business communication Using satellite telecommunications instead ofbroadband or wireless because of limitations Manufacturing corporations received government subsidies to locate in Muskoka and have closed when times got tough and subsidies no longer applied MTO signage limitations on Highway II More government restrictions - keeping informed ofthem - too much red tape Municipal building inspectors are inconsistent when enforcing Building code regulations

Actions: Mapping halfload restrictions like Environment Canada's weather conditions on roads

Opportunities Capitalizing on new resort developments in Muskoka Businesses need locations to expand their operations Muskoka's employers need to work together to offer full-time work Nipissing University - determine employer needs Malone Given Parsons Ltd. * Centre for Spatial Economics A-11 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Lots of local, family operated businesses in Muskoka mentoring potential BizPal - tells you the type of permits/regulations you will need to consider on municipal websites

Actions: Market local building supplies Link Georgian College with employers to fill job vacancies Market your company as a reliable place to work for by using a profit sharing or other program Employees want the business to be successful Vested interest in the viability ofyour business

Key Priorities Pursue more support for apprenticeship program with Ministry of Training, Colleges, Universities and Ontario Shills Development Program Work with Georgian College to develop a skilled work force Preserve public access to lakes in order to deliver goods and services to waterfront residences Provide consistent, high levels of road maintenance, including improved communication of load restrictions in the spring

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Muskoka Economic Strategy Phase 2: Strategic Action Plan Construction, Real Estate & Business Services Sector Consultation February 26th, 2008 4:00pm - 6:00pm

Consultation Notes: Attendees • Dawson's Inc. • Muskoka Futures • Township of Muskoka Lakes

Difficulty in transferring skilled trades credentials between provinces and other countries Lack of ethnic diversity Loss of manufacturing Lack of affordable homes Too many sprawling homes in the rural areas Building on rock is expensive More regulation requirements on trades training now than before Untrained contractors and dissatisfied customers who had their homes renovated Cost to develop properties is expensive because ofthe environmental protection regulations Large number of studies needed to complete a development project Big construction projects are driving up the rates, makes it difficult to afford small renovation projects Large gap between a Grade 12 graduate and an employers skill set needs Lack of skilled trades people Apprenticeship Program No local area officer in Muskoka - an officer used to visit employers Apprentice: Skilled Tradesman ratio is difficult to meet

Actions: Provide affordable housing - i.e. townhouses, low rises Provide Internet access throughout the District

Opportunities People relocating from the GTA to their cottage in Muskoka Business mentoring opportunities Big projects (such as Red Leaves, big box retailers) that need service and trades Provincial highway expansion projects Lots of resources available to start a business Providing wealth management services for new retirees Open new insurance offices in Muskoka Develop the arts and culture industry - growing interest in decorating homes with art Large number of arts businesses in Huntsville Need local contractors who complete small construction projects

Malone Given Parsons Ltd. * Centre for Spatial Economics A-13 MUSKOKAECONOMICSTRATEGY Phase 2: Strategic Action Plan

Developing labourers into apprentices

Actions: Match business owners with potential new business owners (i.e. succession planning) Attract immigrants with business skills to Muskoka Engage new retirees to become part-time employees Attract ethnically diverse populations to Muskoka Develop support services for different ethnic groups Create social, economic and cultural environment where people want to live Educate the community about the benefits of "attainable housing" Develop pre-apprenticeship programs Reduce the carbon footprint - makes good economic sense

Top Priorities 1. Increase support for trades in Muskoka from Ontario Skills Development Program including better access to an officer 2. Develop succession plans that would encourage and support young people from within or outside Muskoka to take over business from those owners nearing retirement 3. Add affordable homes to the housing supply 4. Develop the arts and culture industry 5. Develop ethnic diversity 6. Encourage and support "shop local" initiatives

A-14 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Muskoka Economic Strategy Phase 2: Strategic Action Plan Retail Trade & Personal Services Sector Consultation February 26 th, 2008 10:00am - 12:00pm

Consultation Notes: Attendees • FedNor • Township of Muskoka Lakes • Kruger's Muskoka River B&B, Swiss Chalet/Harvey's • T.A. Bunker Surveying Ltd. • ScotiaBank

Key Strengths Post Secondary educational institutions CN Rail Muskoka Airport presence Attractive landscape

Key Weaknesses Traffic congestion on Highway 11 Skilled and semi-skilled labour availability Limited by pockets of development areas in Muskoka Poor sidewalk accessibility Public transit limitations throughout Muskoka Quality of customer service and consistency in service High cost of recreational activities "Traditional mindset" about new ideas - i.e. "Can't and won't happen" Lack of District wide collaboration on economic development projects or initiatives Government programs don't help with housing and programs make it easier not to work

Lack of tourism event management on a District wide basis People don't see the career opportunity in retail Seasonality and retail shops surviving slow season in the winter Wage levels are low and difficult to live on, but chains have pricing limits Low level of labour quality, high level of labour mobility and poor customer service Have to bring in immigrant workers to fill job vacancies Medical care - new retirees in the area puts a strain on medical care "Who is running the tourism machine?" (the need for coordination) Difficulty in recruiting specialized skilled people and finding employment for spouses Daycare, especially in off hours Attainable housing Resources are in place for start up businesses, but the challenge is to keep these businesses going

Malone Given Parsons Ltd. * Centre for Spatial Economics A-15 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Actions: Providing transportation to get people (especially youth) to jobs in rural and waterfront areas

Opportunities Events such as the Cranberry Festival Snowmobiling market Regionally collaborate on tourism promotion initiatives - coordination of chambers Using telecommunications to provide or supplement medical care Value-added retail- offer a different product than the big box retailer Busing opportunity - private transportation companies providing this service Using the Options for Homes program Target firms that could locate outside Toronto for business cost savings Provide diversity in the type of downtown businesses Offer more community festivals Extend the BIA areas Develop consistent hours among the downtown areas When promoting events, you need energy and collaboration

Actions: Recruit labour into Muskoka for service jobs collaboratively Attract immigrants who want to live in Muskoka Allow secondary apartments where the outside structure is not being changed to provide attainable housing Waive the municipal servicing costs and direct these homes to average income earners A non-traditional role would be for Chambers of Commerce to provide transportation for labour Provide financial assistance to improve facades

Key Priorities I. Determine how the "Tourism machine" is going to be managed 2. Labour force - support for housing, daycare and transportation 3. Leadership and collaboration on a regional basis for programs and projects 4. Improved customer service 5. Cater to the local markets

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Muskoka Economic Strategy Phase 2: Strategic Action Plan Public Sector Consultation February 26th, 2008 1:00pm - 3:00pm

Consultation Notes: Attendees • Simcoe-Muskoka District Health Unit • Simcoe Muskoka Catholic District School Board • Lakeland Holding Ltd. • District of Muskoka Community Services • Muskoka Watershed Council • Muskoka Heritage Foundation • Fenbrook Institution (CSC) • YWCA Muskoka • Simcoe Muskoka CDSB • Beavercreek Institution • Muskoka District Councillor - Township of Muskoka Lakes • Nipissing University • Algonquin Provincial Park • Muskoka Lakes Museum • Muskoka Community Network

Too much overlapping of regulations among different levels of government More profitable to make high end homes instead of affordable homes Difficult to make ends meet on the wages in Muskoka and people need a 'living' wage Lack of cultural diversity Seasonality of employment Availability and hours of daycare Youth out-migration Aging population Need for shared vision for Muskoka

Opportunities Develop walkable communities and environment - community design and transportation Rail transportation Use the IT solutions/ teleconferencing capabilities and keep cars off the road Broaden the tourism message to different cultures Online collaboration for the planning process and public consultation Encourage youth to stay here and raise a family Develop partnerships with school boards and employers to retain youth FedNor's youth internship program keeps the young in Muskoka Develop a Muskoka Portal and notice board on local employment opportunities Learn from physician recruitment program on its successes in recruiting

Malone Given Parsons Ltd. * Centre for Spatial Economics A-17 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Technology capabilities - more people can now work from Muskoka Seasonal residents are now becoming permanent residents Creating affordable housing for the average household Expand health care and educational services to include home care and adult & continuous learning Coordinate human resource initiatives in recruitment and retention of employees in Muskoka The University and College offer an opportunity to Muskoka Develop District-wide Regional Economic Development focus and not "local silos of economic development" Communicate broad-based regional benefits for economic development Correctional institutions are expanding - increased employment opportunities and population, since families follow inmates and settle in the area Balance the year-round population fluctuations Coordinate among employers to attract skilled people into the area Identify a contact for people who want to come back to Muskoka Self employment program - resources are in place for start-up businesses Identify a common Muskoka vision and market it BR+E projects completed - determine the opportunities to collaborate Remove economic development competition among Muskoka's municipalities Market what makes Muskoka unique Develop Muskoka-wide events (eg. attractions for the Family Day Holiday) Accessing funding because we are cooperating and collaborating as a larger entity

Actions: Share municipal strategic plans with each other and identify common priorities Request employers to partner with others and provide for year round employment Push towards compact communities - stress the social and economic benefit Educate the public and let them see the benefit of intensification Facilitate a public process to provide education about environmental sustainability Contact employers and reach out to the broad base to engage them on intensification and other planning issues Implement online planning consultation to encourage participation, especially from youth Collaborate on work place training and education Try to keep youth in the area after graduation through co-operative education Develop a community webpage for employers with job vacancies Start an employer job fair Develop a clear, articulated Muskoka vision and brand Build compact communities which are good for the aged population and allow people to age in place Create Centres of Excellence - so that each area is recognized for a special function or asset rather than duplicating and competing Consult with youth who may be leaving the area to find out why they are leaving and what would encourage them to stay

A-18 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Top Priorities 1. Identify a common vision for Muskoka 2. Build mechanisms for communication and collaboration 3. Ensure a 'living' wage and provide support systems, including alternate hours for childcare 4. Provide District-wide connectivity to the internet 5. Develop 'Centres of Excellence' concept 6. Diversify activities, attractions and services to help make Muskoka a 12-month destination for vacation as well as for somewhere to live and work year-round 7. Engage and provide support for young people, especially in the area of training 8. Address cultural diversity and recognize cultural diversity in tourism or employment markets 9. Promote effective and healthy community design

Malone Given Parsons Ltd. * Centre for Spatial Economics A-19 MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan

Muskoka Economic Strategy Phase 2: Strategic Action Plan Area Economic Development Officers April 14, 2008

Consultation Notes: Attendees: • Ministry of Tourism • Town of Bracebridge Chamber of Commerce • Town of Bracebridge • Town of Gravenhurst Chamber of Commerce • Town of Gravenhurst • Town of Huntsville • Township of Muskoka Lakes Chamber of Commerce • Township of Muskoka Lakes • MTMA • Muskoka Enterprise Centre • Muskoka Community Futures • FedNor

Overview of key priorities expressed throughout previous consultation sessions: Need for a common vision Communication and collaboration Living wage (wages, housing, childcare) "Centres of Excellence" Internet connectivity Year-round events/activities Cultural diversity Sustainability "Green" opportunities Succession planning Transit Tourism model- destination management/development/marketing Aging population Issues with the apprenticeship program Labour force availability Develop Muskoka's arts community

What is the most effective role for the District of Muskoka in economic development? All players (Area Municipalities, District, private sector) need to coordinate their efforts and work together towards a common goal Muskoka should have an economic development functions separate from planning that is a combination of coordination and leadership All stakeholders must make up a roundtable for economic development (private sector, Area Municipalities and Muskoka) Economic development function should be separated from the planning function

A-20 Malone Given Parsons Ltd. * Centre for Spatial Economics APPENDIXA SECTOR & STAKEHOLDER CONSULTATION SESSION NOTES

Focus should be broadened beyond just tourism sector - tourism is one component of economic development and all forms of economic development should be dealt with by the District Area municipalities should remain autonomous Need to collectively identify what employment sectors should be developed and create action plans to build on them Issues such as the living wage, location quotients and labour supply affect Muskoka's ability to attract and retain larger employers and should be dealt with by the District and Areas More specific research is needed into sector segments, and more focused consultation sessions should be hosted to ensure that the smaller niche markets are considered Economic development infrastructure needs across Muskoka should be researched District and Area housing and resort policies should support economic development

Is a new model needed for managing tourism in Muskoka? Ifso, who should manage it? And how? Tourism should be one component of a broader economic development program at the District Tourism development and marketing should be under one roof Economic development would benefit from the stability of permanent employment with a government organization, however it would still need industry advisory board/connection Challenging to make destination management sustainable - need steady source of income (DMF may be the answer) The need for the MTMA Visitor Centres needs to be reviewed with Area Municipalities, Chambers of Commerce, Private Sector, customers and users

Next Steps for Muskoka Economic Strategy: Muskoka should draft preliminary directions regarding economic development and present to Area Economic Development committees, BR+E committees, ChamberslBIAs, as well as the public and consumers for comment

Malone Given Parsons Ltd. * Centre for Spatial Economics A-21