Challenges in Attracting Sustainable Business to Hamilton
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McMaster Engineering and Public Policy Masters Inquiry School of Engineering Practice Challenges in Attracting Sustainable Business to Hamilton Peter Topalovic, B. Eng, M. Eng McMaster University September 17, 2008 Final Release Submitted To: Dr. Gail Krantzberg, Director – MEPP Brian McHattie, Councilor – City of Hamilton Engineering and Public Policy Inquiry Challenges in Attracting Sustainable Business to Hamilton TABLE OF CONTENTS Executive Summary.............................................................................. 4 Introduction ........................................................................................... 6 Section 1: A Framework for Attracting Sustainable Companies..... 7 Policy Recommendations ....................................................................................7 Sustainable Corporate Initiatives Committee............................................................................ 7 Company Evaluation................................................................................................................. 8 Working Groups ........................................................................................................................ 8 Background: Hamilton and the Triple Bottom Line...........................................9 Hamilton: Historical Context and Current Initiatives........................................................9 Vision 2020 ............................................................................................................................... 9 Economic Development .......................................................................................................... 10 Brownfield Development ......................................................................................................... 11 Challenges and Motivation for Change................................................................................... 12 Relevant Sustainability Policy Initiatives in the City ......................................................12 Corporate Energy Policy (PW070127).................................................................................... 12 Corporate Air Quality and Climate Change Strategic Plan (PED06336a).............................. 13 Transportation Master Plan and Rapid Transit ....................................................................... 13 Stormwater Master Plan..........................................................................................................14 Sustainability and the Triple Bottom Line......................................................................14 Triple Bottom Line (TBL)......................................................................................................... 15 Corporate Social Responsibility (CSR)................................................................................... 16 Deep Triple Bottom Line .........................................................................................................16 Natural Capitalism................................................................................................................... 17 Evaluating Companies Using TBL Concepts.......................................................................... 18 Section 2: Challenges in Attracting Sustainable Business to Hamilton............................................................................................... 19 Examination of the Challenges..........................................................................19 Central Question ...........................................................................................................19 Anticipated Findings......................................................................................................19 Anticipated Finding 1: Unforeseen Challenges ...............................................19 Lack of Long Term Planning in the 1970’s to late 1980’s ....................................................... 20 Tax Base Shift and Higher Taxes ........................................................................................... 20 Lack of Shovel Ready and Serviced Land.............................................................................. 21 Anticipated Finding 2: External Challenges.....................................................22 Unsightly Industrial Sector and Harbour front......................................................................... 22 Perceptions of a troubled downtown core............................................................................... 24 Perception of increased red tape, complicated zoning and licensing issues.......................... 25 Competition from neighboring municipalities .......................................................................... 26 Lack of economic development spending............................................................................... 28 Brain Drain of the city’s youth population................................................................................ 29 Anticipated Finding 3: Political and Community Challenges .........................31 Lack of Political Will ......................................................................................................31 Economics and Competing Issues.......................................................................................... 31 Lack of Empowerment ............................................................................................................ 32 Governments and Citizens...................................................................................................... 32 Maintaining the Status Quo...........................................................................................33 Lack of Understanding of Sustainable Development.............................................................. 33 Peter Topalovc Page | 2 Engineering and Public Policy Inquiry Challenges in Attracting Sustainable Business to Hamilton Bureaucratic System............................................................................................................... 34 Inappropriate Structure of Government .................................................................................. 35 A Business as Usual Strategy.......................................................................................35 A Lack of Understanding of the Business Case for Sustainable Development...................... 36 Failure to Engage the Community.................................................................................37 Integrating Vision 2020 into lifestyles...................................................................................... 37 The Sustainability Revolution.................................................................................................. 38 A City Divided.......................................................................................................................... 38 Section 3: Meeting the Challenge..................................................... 39 Leading by Example......................................................................................................39 Investing in Alternative Energy ............................................................................................... 40 Eco-efficiency and Green Buildings ........................................................................................ 41 Green Buying Power............................................................................................................... 42 Land Banking and Brownfield Redevelopment....................................................................... 43 Implementing Vision 2020....................................................................................................... 44 Economic Development and the Business Case ..........................................................45 Investability, Clusters and Stakeholder involvement .............................................................. 45 Public-Private Partnerships.....................................................................................................46 Smart Growth, Vision 2020 and Economic Vision .................................................................. 47 Marketing Hamilton’s Strengths .............................................................................................. 48 Integration, Quality of Life and New Urbanism..............................................................50 Poverty and the Downloaded Dilemma................................................................................... 50 Quality of Life and the Creative Class..................................................................................... 51 New Urbanites, the Right Fit and Change .............................................................................. 53 Integrating Strategies: A case study for holistic approaches to sustainability ........................ 54 Conclusion........................................................................................... 58 Key Questions Arising from the Analysis ......................................................................58 References........................................................................................... 60 Appendix A: Analytic Hierarchy Process ......................................... 66 Appendix B: Hierarchy of Measures and Sub Measures................. 67 Appendix C: The Company Evaluation Process .............................