BUSINESS FEASIBILITY ASSESSMENT KEMPTVILLE COLLEGE REPORT SYNOPSIS Municipality of North Grenville March 30, 2016

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BUSINESS FEASIBILITY ASSESSMENT KEMPTVILLE COLLEGE REPORT SYNOPSIS Municipality of North Grenville March 30, 2016 BUSINESS FEASIBILITY ASSESSMENT KEMPTVILLE COLLEGE REPORT SYNOPSIS Municipality of North Grenville March 30, 2016 TABLE OF CONTENTS Introduction ............................................................. 3 Section 1: Project Description ........................................ 4 Section 2: Market Assessment ........................................ 7 Section 3: Technical Assessment .................................... 16 Section 4: Organization Assessment ................................ 23 Section 5: Financial Assessment ..................................... 28 Section 6: Conclusion ................................................. 29 Documents Reviewed .................................................. 29 2 INTRODUCTION Established in 1917 by the Ontario Government, Kemptville College is one of the most prominent institutions in the community, contributing greatly to the economy of North Grenville and Eastern Ontario. The College’s historic role in applied agriculture education and training defined the agricultural economy of the region. The University of Guelph announced in March 2014, that it would no longer support the continuation of educational programming at its Kemptville Campus beyond the spring of 2016. In response, the Municipality of North Grenville commissioned this feasibility study to determine whether the renewal of the 847 acre Kemptville College and its 52 buildings can provide a sustainable path forward for regional economic development, while keeping the campus lands intact and maintaining its position as a driving force in the region’s agricultural economy. North Grenville’s vision for the renewal of Kemptville College is as a non-profit, multi-tenant education and community hub focused on low carbon innovation and climate change adaptation/mitigation within the areas of agricultural, forestry and water resource management. Kemptville College was originally created to address dramatically declining food production and food security issues in Eastern Ontario through applied education in state-of-the-art agricultural innovation. Almost a century later, the opportunity exists to renew the College’s mandate in applied agricultural education by using new techniques, technologies, and state-of-the-art knowledge to address today’s threats to the agricultural industry and food security brought on by climate change. The objective of this feasibility study, required under Section 203 of the Municipal Act, 2001 and Ontario Regulation 599/06, is to assess the viability of creating a municipal not-for-profit corporation responsible for the operation, maintenance, and eventual ownership of the lands associated with Kemptville College, as well as assess the viability of a renewed Kemptville College focused on addressing the climate change challenge. This Report Synopsis provides a summary of the findings of the feasibility study. 3 SECTION 1: PROJECT DESCRIPTION A non-profit multi-tenant education and community hub will be created through the adaptive reuse of the Kemptville College campus. The hub will focus on three pillars: education and training, health and wellness, and economic development. Each pillar provides a critical support in achieving the hub’s objective of addressing climate change adaptation/mitigation in agriculture, forestry and water resource management. The venture will be a strategic and focused initiative to address Ontario’s greenhouse gas targets as they relate to the hub’s objectives. Using a community hub model, the venture will bring together relevant stakeholders and educators from public, private, and non-profit organizations to provide a comprehensive, holistic approach to addressing agricultural climate change adaptation and mitigation. The future demand for an agricultural hub focused on low-carbon innovation is projected to be high. Recent national and international developments at the Paris Climate Change Conference and in the Government of Ontario’s policy priorities indicate that the political and business climate is favourable for a venture dedicated to low-carbon innovation. The agriculture and agri-food sector contributes a significant proportion of Ontario’s greenhouse gas emissions. Production inefficiencies, food insecurity, and the high costs of traditional food production necessitate the integration of viable and sustainable alternatives for both traditional and non- traditional agriculture. The hub will explicitly focus on applied education and the implementation of low-carbon innovations. The primary tenant of the hub will be a college that provides applied training on climate change adaptation/mitigation and the reduction of greenhouse gases in the agricultural, forestry and water resource management sectors. Other tenants will include educational institutions, relevant businesses, government organizations, trade associations and charitable organizations. The hub business model is intended to create synergies that will reduce costs and create opportunities for the tenants on campus. The hub will also create value chains by including stakeholders from all stages of the process that bring agricultural products to market. Based on expressions of interest for campus space, tenancy is expected to produce a greater proportion of the venture’s revenue than College tuition. Tenancy will therefore be the primary revenue stream, which will be supplemented by tuition received by the College. The ratio of revenue received from tenancy compared to tuition can be adjusted if the college changes in size over time. Key business drivers of the hub include: attracting first- paying tenants, creating an effective network, improved agricultural innovation, and impacting the environmental features related to forestry and water resource management. Initial costs include upgrading campus facilities, potentially purchasing the campus from the Agricultural Research Institute of Ontario, as well as ongoing costs for staffing, educational programming, and operations and maintenance. If approved, the Municipality of North Grenville will create a business plan for the venture. Education and Training Kemptville College’s updated post-secondary low-carbon applied education and training programs are intended to promote the knowledge transfer of innovative, environmentally sustainable practices focused on agriculture, 4 forestry and water resource management to the region and beyond. A modular education model will be used, where a range of courses with different durations (days, months, weeks) and delivery methods that can be taken individually or combined to form a certificate program. Applied extension education, trades training (welding, heavy equipment), and vocational courses in horticulture could also be offered. Preferably, the Ministry of Training, Colleges and Universities will support a renewed Kemptville College in order for the intended educational programs to be provided by a recognized Ontario college. Alternatively, a private career college will be formed. The core of the education and training pillar will be on climate change adaptation/mitigation. The hub will represent the entire continuum of education, from junior kindergarten to adult education. The hub model creates a setting for just-in-time education on climate change, with opportunities for interactive learning and pre-class assignments with other hub tenants. Primary and secondary schools will be sought as potential tenants to promote an understanding of climate change and the internalization of low-carbon practices from a young age. Continuing education tenants will also enable the climate change hub to reach adults that have been out of the educational system. Vocational horticulture training will ensure that the hub is making climate change the core of the entire spectrum of education. Health and Wellness In addition to a geographic impact, climate change has a very real impact on human health and wellness. Increasing particulate matter from decreasing air quality can increase the risk of heart attack or stroke, rising temperatures make a fertile breeding ground for water-borne diseases, longer and fiercer pollen seasons are expected to worsen respiratory symptoms, and extreme weather and natural disasters can harm mental health and stress levels. As a result, low-carbon innovations that mitigate climate change can enhance personal health and wellness and ensure the future health of communities and the region. An environmental health and wellness approach is intended to foster a sustainable relationship with nature and improves individual wellness by encouraging the maintenance of personal surroundings. Under this pillar, a cold-climate solar greenhouse could provide vocational training for individuals with developmental disabilities and post-traumatic stress disorders to improve the health and wellness of the community. The program can improve the mental health of these individuals by reducing stress levels through horticulture and improving confidence through job training. The program could also be positive for the community by lessening the impact of climate change and associated health risks. Economic Development The hub will contribute to the community’s development by transforming the region into a leader in low-carbon innovation in agriculture. Economic growth opportunities relating to climate change innovation are projected to evolve from a changing political climate and priorities at the provincial, federal, and international levels. New opportunities for the region’s businesses and an increase in economic activity
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