Table of Contents
1.0 Introduction...... 1 2.0 Key Findings from the Research...... 1 2.1 Challenges...... 2 2.2 Opportunities...... 2
3.0 Boomtown to Sustainable Town: Recommended Strategies and Actions...... 4 3.1 Attraction Strategies...... 4 Strategy 1: Create a Sustainable Economic Development Office for Town of Smithers in Conjunction with Electoral Area “A” of the Regional District of Bulkley Nechako...... 4 Strategy 2: Build a Resource-Based Industry Supply and Services Cluster in Smithers, Focussing Initially on Mining Supply and Services...... 7 Strategy 3: Support the on-going work of the Smithers Exploration Group (SEG) and School of Exploration and Mining (SEM), to offer courses geared to the exploration and mining industry...... 10 Strategy 4: Support The Development Of New Products From Forest-Based Biomass, Including Bio-Energy...... 10 Strategy 5: Support The Existing Agriculture Industry ...... 11 Strategy 6: Encourage the Development and Marketing of Smithers’ Tourism Products...... 12 Strategy 7: Enhance the Quality and Availability of Local Market Information...... 14 Strategy 8: Keep Current and Actively Research Additional Resource-Based Industry Development Strategies...... 15 Community Economic 3.2 Accommodating Strategies...... 16 Development Study Strategy 9: Building on Existing Town Quality...... 16 Strategy 10: Plan For Future Residential Development Taking Cues from Existing Development Patterns...... 18 From Boomtown to Sustainable Town Strategy 11: Expand And Prepare Smithers’ Industrial Land Base For Economic Growth...... 19 Strategy 12: Encourage More Efficient Regulatory Process for FINAL REPORT New Investment...... 20 Prepared for 3.3 Summary of Strategies for Economic Development...... 21 Economic 4.0 In Closing...... 22 Development Committee
Appendices Town of Smithers Appendix A: The Facts About Smithers Appendix B: Contact Information March 2008 Appendix C: Bylaws From ODCEDS
ToC 1.0 Introduction The final report of the Boomtown to Sustainable Town Economic Development Study is a response to the Economic Development Committee’s request to provide specific direction, through strategies and action steps that will support sustainable economic growth in Smithers. The report advocates diversity as a means of ensuring sustainability. Diversity refers to geographically diverse business markets as well as diversified growth across different economic sectors. Promoting diversity is key to weathering the booms and busts that typically occur in resource-based industries and minimizing the impact of these swings on the quality of life of Smithers’ residents.
The recommended strategies are described in terms of their ability to attract new business investment and accommodate the related growth. Attraction Strategies prioritize growth in the resource-based industries, especially mining, as well as in tourism arts and culture and call for the creation of a new Sustainable Economic Development Office.
Accommodating Strategies encourage the Committee to build on a strong asset: the town and recommend continued enhancement of the qualities that appeal strongly to people who live in and visit Smithers: its alpine charm; compact, human-scale downtown; exquisite natural setting close to outdoor amenities and a vibrant arts and culture community. The strategies also propose proactive development of Town-owned residential land, expansion and preparation of land for industrial development, and a shift towards a more efficient regulatory process for new business.
The recommended strategies and actions have evolved from research spanning the corporate world and the local community. The research includes qualitative insights from key informants’ corporate understanding and residents’ deep local knowledge — documented in Briefing Reports 1 and 2 — as well as statistical facts Community Economic that are presented in The Facts About Smithers in Appendix A of this report. Development Study A summary of the key findings that shaped the recommended strategies is presented in the next section, followed by a description of the recommended From Boomtown to strategies. The consultants are pleased to have been part of this study and hope that it will lead to a stronger diversified local economy for theTown of Smithers. Sustainable Town
2.0 Key Findings From The Research FINAL REPORT
Statistics sometimes reveal facts about a community that are contrary to Prepared for commonly-held perceptions. In the case of Smithers, this proved to be the case with respect to anticipated population growth. Anecdotal comments indicated Economic a desire and urgent need to prepare for a considerable influx of people (e.g., Development 500). However, the statistics indicate that the population of Smithers has been Committee declining, though minimally, over the past ten year. The population is projected to Town of Smithers grow, but only modestly, in the future - in the range of 0.1% to 0.3% between now and 2031. This recognition emphasizes the importance of stimulating the Town’s economic growth. March 2008
Page Like any community, the Town of Smithers faces both challenges and opportunities, but is also advantageously positioned to capitalize on these opportunities and meet the challenges. The town enjoys a relatively diversified local economy (given its size and location), an expanding and yet still affordable housing market, and a tourism sector with potential for growth. Its downtown alpine charm, which appeals to residents and visitors alike, sets it apart from other northern communities. Finally, strong leadership from the Town and interest in pursuing economic development, in particular related to the resource- based mining sector, are crucial ingredients to the successful implementation of strategies for economic growth.
2.1 Challenges Land Base Constraints. The Town’s physical boundaries — Bulkley River, mountains, and railway — constrain possible expansion. However, this can be considered a benefit and a means of encouraging compact and environmentally friendly growth, with denser residential development close to the core resulting in a walkable community. Given the Provincial government’s increasing expectation that communities reduce their greenhouse gas emissions, maintaining the compactness of the Town is one way to do this.
Struggling BC Forestry Sector. BC’s forest industry experienced the loss of almost 10,000 jobs in the past year. Weakening markets in the US, a strong Canadian dollar, Mountain Pine Beetle infestation and higher production costs have created a near perfect storm in the industry. Smithers has been impacted by the loss of 25 jobs and, elsewhere in the region, Houston lost 70 positions and Prince George 220.
Regional Competition. To meet economic growth goals, especially in the mining support sector, Smithers will have to deal with strong competition from other communities. In particular, communities in close proximity exert some influence Community Economic on Smithers’ economic growth by competing directly for new jobs, retail floor Development Study space and residents. For example, Prince George is proactively enticing businesses to locate there and making efforts to establish an inter-modal transportation From Boomtown to facility. Spending leakage, to communities such as Terrace, is impacting potential retail growth. Sustainable Town
2.2 Opportunities FINAL REPORT Resource-Rich Location. Key among Smithers’ advantages is its location in a Prepared for resource-rich part of the Province that is experiencing considerable investment Economic in mining exploration and development. Development Committee The BC Government described 2007 as a strong year for mining in Northwest BC, Town of Smithers noting that it experienced “robust mine performance, great strides toward new mines and a frenetic pace of exploration”. Approximately $385 million was spent March 2008 on construction and development activities towards eventual production and one
Page mine in the region, The Ruby Creek mine, announced that it will go to production. Late in 2007, the Galore Creek Mine announced that it was putting construction on hold because of escalating costs, but has since then announced a re-assessment of activities that would allow it to return to future production. The Government reports that 2008 could be a pivotal year for positive growth in the mining sector in northwest BC.
Research suggests that direct jobs in the mining industry may be on the decline, but technological advances that use more machines, services, technology and specialist labour will require greater support in the mining supply and service sector. One academic expert predicts worldwide demand for mining supply and services will increase by a factor of ten over the next 30 years1.
Smithers has an established base of successful mining support and service businesses, and given the above, is in a healthy position to expand this sector.
Nature-Based Tourism. In addition to “in the ground” resources, Smithers has the advantage of being centrally located within a world-class sport fishing region. Fresh water sport fishing, which generated $233 million in BC in 2001, is a significant part of the region’s tourism industry. It supports well-paying guiding jobs and contributes to the local economy through the purchase of transportation, accommodation, food, and guiding services, as well a non-fishing activities such as visiting attractions and shopping. Other nature-based activities including hunting, heli-skiing and hiking are an important part of the Smithers area tourism industry. Global trends indicate increasing expenditures in commercial adventure tourism. Combined with an exquisite natural setting and a world-class fishing resource, this points to potential to further develop the nature-based tourism sector in the Smithers area.
Transportation Links. Businesses in Smithers benefit from Community Economic strong transportation linkages. Key among these is an Development Study expansion to the Smithers airport runway enabling large jets to operate, giving access to the rest of the province and major centres like Vancouver. Rail linkages open up From Boomtown to access to Asia via the port at Prince Rupert, central Canada Sustainable Town and mid-US markets, and highways connect to mining sites and other cities and towns including north to Alaska and south and east to BC and Alberta. FINAL REPORT
In light of the challenges, opportunities and Smithers’ Prepared for strengths we proposed the following strategies to take Economic Smithers from Boomtown to Sustainable Town. Development Committee
Town of Smithers
March 2008 1 Robinson, David. Ontario’s Mining Cluster Strategy: Background Information. February 7, 2003. Available on-line at http://inord.laurentian.ca/2_03/MNDM_Cluster%20Strategy.htm.
Page 3.0 Boomtown to Sustainable Town: Recommended Strategies and Actions Local governments are typically not engines of economic development, but they can affect change and have a significant impact on the local economy by enabling and/or facilitating strategies that work to attract new growth and accommodate it as it occurs.
3.1 Attraction Strategies Strategies one to eight — attraction strategies — will attract new growth in resource-based industries, with an initial focus on the mining supply and services sector. Attraction strategies aim to draw attention to Smithers as an investment destination. They look to identify and promote specific opportunities within the community that encourage outside investment and help to support community objectives. They involve strategic approaches to potential investors/partners and make the case for Smithers as a viable and attractive business location. Attraction strategies improve the town’s profile and include the preparation and dissemination of key data about the town to outside interests.
To implement the attraction strategies, we are proposing the creation of a new economic development organization. Strategy One describes the proposed governance model and staff composition for a new Sustainable Economic Development Office. Strategies Two to Eight are direct implementation strategies to be carried out by the newly created office.
Strategy 1: Create a Sustainable Economic Development Office for ownT of Smithers in Conjunction with Electoral Area “A” of the Regional District of Bulkley Nechako Currently, the Smithers’ Economic Development Committee plays an advisory role for the Town council but has no dedicated, full-time staff person with a mandate to undertake economic development. Further, a separate committee oversees aspects of tourism development in the town and the Chamber of Commerce using funds from the Town manages the visitor information centre. Community Economic The Town benefits from the presence of the CFDC (Community Future Development Study Development Corporation) Nadina office, which has the mandate to provide programs and services to the people of the Bulkley Valley and Lakes District and actively seek opportunities to develop and sustain cooperative community From Boomtown to economic ventures and initiatives. It is an independent, non-profit organization, Sustainable Town directed by a volunteer board, that undertakes a broad range of community- oriented programs including Community Economic Development, Social Enterprise, Small Business Assistance, Employment Services and Aboriginal Services. Its main FINAL REPORT office is located in Houston, where the General Manager works. The Smithers Prepared for office employs six staff, whose functions focus primarily on employment services. Economic Other communities in northern BC (for example, Prince George) as well Development as elsewhere have seen significant improvements in the coordination and Committee implementation of economic development activities through the development of a single, stand-alone organization. An organization that is “arms length” from Town of Smithers the local government is often perceived by businesses as being more efficient. Furthermore, a single body tends to be able to improve performance, more easily March 2008 build partnerships with the private sector and other agencies, and leverage funding that may be difficult to achieve as a municipal corporation.
Page We feel that the Town of Smithers would benefit greatly from a dedicated economic development organization with a strong mandate to expand existing, and recruit new, businesses in the resource-based industries as well as support development in the tourism, recreation, arts and culture sector. Centralizing planning and funding so that all economic development initiatives come under one roof could lead to greater efficiencies in areas such as community marketing.
It is therefore recommended that Smithers establish a new Sustainable Economic Development Office (SEDO).
We recommend that the Town establish this new organization in conjunction with Electoral Area A of the Bulkley-Nechako Regional District, reflecting the fact that the economic impact of the activities would benefit a broader geographic area than simply the Town. Based on an analysis of similar economic development organizations, we recommend that an annual base funding amount of approximately $250,000 be allocated for this office. We recommend that the Town undertake an analysis of its existing expenditures on economic development and tourism promotion and development, and its current organizational structure, with a view to consolidating all of these related economic development activities within the new Sustainable Economic Development Office.
Governance We recommend that the governance of SEDO be arms length from Town council and Regional District board. SEDO could take a number of forms from a non-profit society to a non-profit corporation. We have identified a model, based on Oliver & District Community Economic Development Society (ODCEDS) that we think would work well in Smithers. Based on this model, we recommend a board of eight directors oversee SEDO. The Town and the Regional District of Bulkley Valley would each appoint two directors every two years. No person who holds elected office for the Town or Regional District would be permitted to sit as a director. For further information see case study below, Appendix B (contact information for Mr. Les Lawther, Economic Development Officer, ODCEDS) and Appendix C (ODCEDS Bylaws). Community Economic Town of Oliver Case Study Development Study The Town of Oliver has a population of approximately 4,700 people and an economy that is heavily focused on agriculture, in particular the wine industry. From Boomtown to In conjunction with the surrounding rural district, Electoral Area C of the Sustainable Town Regional District Okanagan Similkameen, the Town of Oliver established the Oliver & District Community Economic Development Society (ODCEDS). The Society is jointly funded by the two founding jurisdictions. Originally the Society FINAL REPORT included a community membership base but has since evolved to a tighter Prepared for structure where the Town and Rural District each appoint four community members to the Board of Directors. Directors are appointed for a two-year Economic term with half rotating out annually. An Economic Development Officer and an Development Administrative Assistant administer the activities of the society. Typical annual Committee expenses for the ODCEDS are approximately $343,000. Revenues include roughly $200,000 from the Town of Oliver, Town of Oliver - Airport and Electoral Area C Town of Smithers as a base budget with the balance coming from other sources.
March 2008
Page Operations and Staffing The SEDO should be efficient and strategic in its mandate. It should be lean in its operations but well-resourced with a strong leader supported by skilled research and administrative staff.
The success of the SEDO will rely on the person selected to lead it and implement its activities. It is recommended that the Town fund a senior, full-time Economic Development Officer whose role will be to strategically seek out and attract business investment to Smithers, which will strengthen the economic diversity of the local economy. The person hired in the position will require the skills to initiate and nurture appropriate contacts with potential investors, negotiate partnership opportunities and implement marketing initiatives.
The individual chosen to drive business development for the Town should be a senior level, experienced, corporate-oriented individual. Familiarity with the resource-based industries will be paramount, but equally important will be the capacity to feel at home, and be seen to be comfortable, in the corporate environment — with business executives who want to deal with individuals with direct decision-making capacity. Knowledge of economic development, strong networking, communication and sales skills, and knowledge of local government processes will be important as well. Experience with and knowledge of real estate negotiations will strengthen the Town’s ability to effectively provide for and accommodate expanded industry and the residential and retail development that will accompany it.
A second, more junior but skilled staff person should also be hired to provide administrative assistance and research capacity. This support person will be required to keep up to date on a range of statistical indicator data and prepare this information in ways that can support targeted business approaches and marketing initiatives.
Tourism is a targeted area for economic expansion and fall naturally within the mandate of the SEDO. We therefore recommend that the Town’s current Tourism Coordinator be located under the umbrella of the SEDO. This would immediately Community Economic inject the SEDO with tourism expertise and the office’s research capacity would be Development Study available to support the Tourism Coordinator’s work.
Strategy 1 Action Steps — Town From Boomtown to 1. Approach Regional District of Bulkley Valley, EA A about coordinating Sustainable Town on this initiative; 2. Obtain council/RD board support to establish a new sustainable FINAL REPORT economic development organization; 3. Confirm preferred model of governance for new organization; Prepared for 4. Undertake review of existing: Economic Development - Financial expenditures on economic development including tourism; Committee and
- Staffing and organizational structure related to economic Town of Smithers development activities;
4. Identify and assign funds for organization; March 2008 5. Establish organization and put board in place;
Page 6. Put the time and resources into a careful and appropriate hire of the Economic Development Officer who will lead the SEDO; and 7. Make related organizational changes, for example relocating tourism function from Town to SEDO. Strategy 2: Build a Resource-Based Industry Supply and Services Cluster in Smithers, Focussing Initially on Mining Supply and Services. Significant funds are being invested in resource-based activities near Smithers, in particular in mining, metal production and, though somewhat further afield, oil and gas exploration and processing.
In light of a struggling forestry industry, mining is an important alternative resource-based industry. In particular, Smithers is well positioned to build its capacity in supplying and servicing the mining sector, which is experiencing healthy growth in northern BC. Smithers’ location near resource extraction activity, its multi-facetted transportation infrastructure, and leadership by the Town to support this kind of development make this a practical and realistic sector for economic expansion. In addition, Smithers is home to established supply and service businesses that support the mining sector, including Rescan Environmental Services, Acme Analytical Laboratories, Hy-Tech Drilling and CJL Enterprises, all of which serve mining companies in the local region, as well as across northern BC and the world.
Smithers has the potential to build a supply and services cluster for the mining industry. An industry cluster is defined as a: geographic concentration of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions (e.g., universities, standards agencies, trade associations) in a particular field that compete but also cooperate2.
Sudbury, Ontario Case Study
Sudbury, Ontario is one example of mining supply and services cluster that illustrates the potential for this kind of economic growth. In Sudbury, 300 Community Economic mining supply and services companies employ approximately 11,000 people and Development Study employment in the supply and service sector is reported to be surpassing direct employment in the mining industry. As an example of the scale of activity in the Sudbury cluster, INCO spent over $400 million on local supplies and services in From Boomtown to 2006. 3 Sustainable Town
Success of the cluster is attributed to the creation of an industry association of local mining suppliers — Sudbury Area Mining Supply Services Association FINAL REPORT (SAMSSA) — and the global focus of the organization. From its initiation, Prepared for SAMSSA’s now Executive Director made contacts with numerous embassies focusing on their trade commissioners and government agencies who might have Economic been interested in partnerships or distributorships. This strategy let the world Development know that Sudbury was open for business and worked to find geographically Committee diverse markets that would reduce dependence on local markets. 4 Town of Smithers
2 Porter, M. (2000) as cited by Robinson, D. February 7, 2003 in Comments on Ontario's Mining Cluster Strategy: Background Information. February 7, 2003. Available on-line at http://inord.laurentian.ca/2_03/ March 2008 MNDM_Cluster%20Strategy.htm 3 Sudol, Stan.. SAMSSA and Goliath: Province yet to recognize importance of cluster in Northern Life: Sudbury’s Information Leader, August 15, 2007. Available at: http://www.northernlife.ca/News/Columns/ Archive/Sudol/08-16-07-samsaa.asp?NLStory=08-16-07-samsaa. Page 4 Ibid. Strategy 2 Action Steps will contribute to developing resource-based industry supply and services cluster, with a first priority focus on mining. Note the emphasis on looking for markets in other parts of the country and the world. This geographic diversity is a preventative measure that anticipates possible downturns in some geographic areas while not in others.
Action steps proposed for the resource-based sector represent a model of working to support business growth that can be applied to other sectors. The model is composed of the following:
• Knowledge. Know your area thoroughly. Undertake thorough and credible research about the sector you are expanding from a range of sources. • Contacts. Identify key contacts, and take time to build relationships. Document relationships and contacts and keep them active. • Approach. Make targeted, strategic approaches to potential investors using thoroughly researched, credible information about the potential investors and potential initiatives, backed up with appropriate promotional materials • Governments. Work with governments (Town, Regional District and Province) to facilitate an easy entrée by desirable new investors. Strategy 2 Action Steps — Town 1. Mandate SEDO to build a Resource-Based Industry Supply and Services Cluster that initially targets mining. Strategy 2 Action Steps — SEDO 1. Identify, analyze and understand the target-market companies working in the region in resource-based industries. 2. Make contact with: Community Economic Development Study - Parent companies that support-businesses would serve, targeting in particular the individual(s) responsible for purchasing From Boomtown to supplies and services. Get to know the Sustainable Town purchasers and learn what their companies purchase and from where, and what they would be willing to purchase locally (see FINAL REPORT Appendix B for contact information); Prepared for - Companies already providing supplies and services to the industries Economic and learn about possibilities for accessing markets in other parts of Development the country and the world; Committee
- Businesses operating elsewhere that could benefit by relocating to Town of Smithers Smithers; and
- Head office executives of parent, as well as potential new March 2008 businesses.
Page 3. Meet with existing services and supply businesses in Smithers to:
- Get buy-in on the development of an industry “cluster”;
- Gain insights into what kind of businesses would generate productive competition and strengthen the cluster; and
- Build the network of related businesses.
4. Keep current, through research and networks, on mining operations throughout the country and the world, and continually seek out opportunities to provide services elsewhere. A recent poll ranked BC ninth in Canada behind Ontario, Alberta, Manitoba and other regions as having the best policy environment in the world for mining investment. This suggests that BC has room to grow in attracting investment to that sector, but also that there are ample other opportunities for the provision of mining services and supplies. 5. Continually seek out opportunities to have businesses serve more than one sector and educate businesses about the possibilities. Facilitate connections that would support new business development. 6. Make strategic and targeted approaches to potential business investors, supported by professional-quality sector specific materials aimed at highlighting Smithers’ strategic location, labour force characteristics, transportation linkages and land/floor space availability, as well as local area amenities. In short, information that will convince an investor that Smithers knows what it is doing and is prepared to accommodate new business; 7. Supplement targeted approaches with appropriate marketing and promotional initiatives as well as attending industry trade shows, promoting services in specialized sector publications, tracking and maintaining key contacts (see Appendix B for list of contacts identified to date). 8. Work with the Town to ensure that the necessary supports are in place to make it easy for businesses to locate in Smithers. This will include Community Economic strategies more fully described later in the report, for example: Development Study
- Adequate supply of industrial land to accommodate new business; From Boomtown to - Efficient permitting approval processes; Sustainable Town - Easy access to information about how to set up business in Smithers;
- Easy access and introductions to leaders of the Town when potential FINAL REPORT businesses visit. Prepared for 9. Coordinate with tourism staff, to ensure that branding and marketing Economic materials can be used for and/or easily adapted to promote business Development investment. Committee
Town of Smithers
March 2008
Page Strategy 3: Support the on-going work of the Smithers Exploration Group (SEG) and School of Exploration and Mining (SEM), to offer courses geared to the exploration and mining industry. The SEM is funded by grants from industry and various levels of government and is actively seeking a long-term stream of funding. The school is well supported by the mining sector and has active committees of industry representatives and educators. SEM is recognized for its efforts to integrate First Nations students into the mining sector and is continually refining its offerings in response to industry needs. An expanded SEM that offers increasingly more sophisticated courses to the industry would be a strong attractor of mining support businesses to Smithers by providing a skilled pool of labour. The school contributes direct economic benefits to the community as well; for examples, local businesses supply their two 40- person summer bush camps. Development of a new Northwest Community College campus that will house SEM is underway.
Strategy 3 Action Steps — Town 1. Mandate SEDO to play a supporting and advocating role for the work of the SEG and SEM, enabling the school to expand its course offerings and secure long term funding. Strategy 3 Action Steps — SEDO 1. Become a member of the SEG; and 2. Support SEG and SEM through networking activities.
Strategy #4: Support The Development Of New Products From Forest- Based Biomass, Including Bio-Energy Given a forestry industry that is facing challenges, SEDO should seek funding to prepare an audit of the biomass capacity and identify potential new products that can be generated from forest-based biomass. In particular, SEDO should investigate the recent call for proposals from BC Hydro for bioenergy producers. This call is a direct result of the BC Government’s Bioenergy Strategy, released in January 2008. The Community Economic RFP is the first of a two-phase Bioenergy Call for Development Study Power referenced in the strategy, focusing on existing biomass inventory in the forest industry. This strategy is congruent with the development of From Boomtown to a mining-industry service and supply cluster, given Sustainable Town that the mining industry requires energy to support construction and operations phases. It also supports a sustainability approach that seeks renewable sources FINAL REPORT of energy. Prepared for
It will be important to be aware of the issue of competition for wood fibre supply. Economic Existing companies such as NewPro have identified lack of adequate wood fibre Development supply as a potential challenge for their current fibre board operations. Committee
Strategy 4 Action Steps — Town Town of Smithers 1. Mandate SEDO to develop an action committee made up of community and industry representatives to support expanded use of forestry biomass, in particular bioenergy. March 2008
Page 10 Strategy 4 Action Steps — SEDO 1. Review the government’s Bioenergy Strategy (www.energyplan.gov. bc.ca/bioenergy); 2. Research BCHydro’s call for power (www.bchydro.com/info/ipp/ ipp51371.html); 3. Identify potential providers, build relationships and support them in efforts to deliver power product; and 4. Keep abreast — through research and networking — of potential new applications of forest biomass. Strategy 5: Support The Existing Agriculture Industry Agriculture is a diversifying element of the Smithers and area local economy and there are opportunities to strengthen this sector. In addition to its economic value, agriculture protects the area’s open spaces and wildlife, preserves a cultural way of life for local families and can provide an alternative income source for seasonal workers such as loggers. The recent opening of an abattoir is a success for the Town and region that stands to benefit several hundred livestock farmers in the region.
It is a challenge to make farm operations in the region financially viable. Small producers struggle to make a profit because chain stores offer very low prices for their products. Similarly, dairy farmers face deterrents such as international tariffs and Milk Board regulations that are disincentives to growth of this type of farming. Yet the region has abundant land in the Agriculture Land Reserve, and this land is relatively inexpensive compared to other locations in the Province. For example, agricultural land in Oliver is valued at roughly $150,000/acre on average. Compare this to agricultural land in the Bulkley Valley Community Economic Region that sells for less than $4,000/acre for an 80-acre parcel or as little as $1,200 - $1,500/acre for larger parcels in the order of 160 – 300 acres. Development Study
Attractive prices mean that agricultural land is being bought, but often for lifestyle reasons, including the privacy it offers, rather than for intensive farming. From Boomtown to Owners lease the land to farmers for grazing purposes and to retain a property’s Sustainable Town status as farmland. In general, these lands are not used intensively for agricultural production. FINAL REPORT
There is an opportunity to promote more intensive use of agricultural land for Prepared for forage, grazing and small-scale crop production. Smithers’ success in growing cool weather crops would be enhanced with an improved distribution system. Economic In addition, global warming may in fact present an opportunity to expand crop Development production. A rough estimate of the projected climate impacts in the Smithers Committee area indicates that during the 2020s spring time median temperature is likely Town of Smithers to increase by 1.0 degree Celcius and summer median temperature is likely to increase by 1.2 degrees Celcius (Pacific Climate Impacts Consortium Regional Analysis Tool available at: http://pacificclimate.org/tools/select). March 2008
Page 11 Strategy 5 Action Steps — Town 1. Mandate the SEDO to maintain the economic vitality of an agriculture industry in the region, in particular through support to small-scale agricultural production. Strategy 5 Action Steps — SEDO 1. Support small-scale crop production by finding new distribution and sales mechanisms, including possible expanded regional farmers market. Strategy 6: Encourage the Development and Marketing of Smithers’ Tourism Products Tourism has growth potential in Smithers given the area’s natural and historical/ cultural attributes as well as its transportation connections to the rest of the province. However, there is strong competition for the visitor dollar: robust growth in winter and four-season resort development in other areas of the province and aggressive marketing for back-country adventure travel elsewhere challenges the comparative attractiveness of tourism opportunities in Smithers.
A parallel study, funded by Tourism BC thorough its Community Tourism Foundations program, is being undertaken in Smithers. Specific strategies to develop tourism as an economic generator will be proposed in that study. We will nevertheless offer some observations and suggestions for going forward.
Smithers has a strong nature-based back-country tourism industry, including the world-class sport fishing industry and opportunities for adventure tourism. There is room to promote these offerings more aggressively. Smithers would benefit from an increased number of new and/or improved front-country tourism destination products, facilities and amenities. An expanded Hudson Bay Mountain Community Economic ski hill facility would attract visitors to the hill and the Town itself. Strategy 9 recommends continued development of the downtown, a parallel strategy to Development Study enrich the Town’s visitor attraction potential.
Arts and culture tourism would diversify From Boomtown to and enrich the tourism offering in Sustainable Town Smithers. Analysis of the viability of developing an arts and cultural FINAL REPORT performance centre should be undertaken to quantify more precisely how it would Prepared for enhance economic development, in particular tourism growth. Such a facility Economic Development would meet an expressed need of the arts Committee community and enhance the cultural dimension of Smithers’ quality of life. It also has potential as a new tourism product, building on a vibrant music community Town of Smithers with the potential to establish widely known festivals and/or recognized seasonal music school/retreats. This requires further analysis. March 2008
Page 12 In addition to nature-based and arts and culture tourism, sports tourism is a potential growth area, in particular events, competitions and games related to winters sports such as hockey, curling, skiing and snowmobiling. Smithers is Hockeyville! is a great starting place.
Enhancing the profile and marketing the Smithers’ brand will be important to tourism development, but will also support the business development in other sectors including resource-based industries. As a small community in BC’s northern region, Smithers faces some obstacles to maintaining its profile and effectively marketing itself as a place to visit or invest in. Through the development of a specific local brand and by being strategic about marketing itself, the community can close this disadvantage gap and enhance its ability to develop its economy.
It should be noted here that effective branding and marketing involve more than simply the development of a logo and tag line. Effective place marketing programs not only identify existing advantages, and create a community story with which both the community and outsiders can identify. They also work to align a community’s many features and services to enhance that story and further promote the community by emphasizing its advantages as well as setting incentives to attract investor/tourist interest and effectively and efficiently delivering products and services.
In the case of Smithers, an effective marketing program would look to emphasize the community’s quality of life, community engagement, and attractive natural and built environment. Many organizations contribute to a community’s marketing activities, including provincial, regional and local governments, First Nations, Chamber of Commerce, utility companies, regional organizations, property developers, hospitals, educational institutions, and the tourism sector. The degree to which these organizations coordinate their activities around a common vision is a critical determinant of marketing success. Community Economic Development Study Strategy 6 Action Steps - Town 1. Relocate the Tourism Coordinator to function under mandate of SEDO; From Boomtown to Strategy 6 Action Steps - SEDO Sustainable Town 1. Work with Tourism BC to develop an action plan and support the implementation of new tourism strategies; 2. Continue to promote nature-based back-country tourism products; FINAL REPORT 3. Develop and promote new front-country tourism products; Prepared for
4. Develop a coordinated strategy for arts based on an analysis of the Economic economic impact of an arts and culture performing centre; and Development 5. Investigate the viability of a strengthened sports tourism sector and Committee use the findings to develop an action plan; Town of Smithers 6. Engage a professional marketing firm to undertake a comprehensive branding and marketing exercise for the community; March 2008 7. Review town policies and local partnerships with a view to enhancing the town brand (i.e. if marketing message emphasizes responsiveness Page 13 by the town, regulations and corporate culture should reflect this message); and 8. Develop materials that are target to specific audiences, including potential business investors and tourists. Strategy 7: Enhance the Quality and Availability of Local Market Information Often companies find new locations for their facilities or expansions of their operations by undergoing a site selection process. During this process businesses look at a number of factors — demographics, proximity to customers and suppliers, transportation linkages etc. — to determine locations for expansion or new ventures. In doing so, businesses often use independent third parties called location professionals. These location professionals select sites based on detailed, current data about the local labour force, business climate and available properties, provided by the community. Good data collection and maintenance therefore provides a competitive advantage to communities that are able to chart economic, industrial, and workforce trends.
Keeping basic market data — e.g. population, demographics, income profile — current and improving access to this information (most of which will come from Statistics Canada) is a very simple way to positively introduce potential investors to the community.
Beyond this, given that Smithers is a small community without a significant local commercial real estate industry, more detailed market data including land base information, retail floor space estimates, property values, and/or growth projections is much harder to find. As a means of further facilitating the distribution of accurate community information, the Town should endeavour — using the research capacity of SEDO — to compile and continually update detailed market information that can be distributed to interested investors.
This should include the development of a consistently updated inventory identifying the land or building space available for business use. This would include vacant or redevelopable industrial or commercial sites and vacant retail, Community Economic office or industrial space, as well as other pertinent sales information.This Development Study inventory could be developed in association with local realtors and land brokers. This information will help facilitate new businesses entering the market as well as facilitate the town in aiding expanding and relocating businesses currently in From Boomtown to Smithers. Sustainable Town
A first stage due diligence study analyzes the relative strengths and weaknesses of the key areas within the community. Such a document is useful to potential FINAL REPORT investors. Developed by an independent real estate professional, a document of Prepared for this type would expedite a location professional’s assessment of Smithers as a potential place to invest. Economic Development Strategy 7 Action Steps — SEDO Committee 1. Compile and continually update local community information fact sheets; and Town of Smithers 2. Develop and continually update, with the Town, land base inventory that includes information on vacant/redevelopable industrial or March 2008 commercial land parcels, as well as vacant retail, office and industrial space. Page 14 Strategy 8: Keep Current and Actively Research Additional Resource-Based Industry Development Strategies To retain a competitive economic advantage, it is important to keep current, be aware of and explore potential initiatives that could further diversify Smithers economy. In particular, the SEDO should look into the feasibility of an inter-model facility in Smithers and advance the possibility of Smithers serving as a fly-in fly- out base for the oil sands.
An inter-modal facility in Smithers would not only help expand the export business of local manufacturers by opening up access to mid-US markets, it could become a vital and viable economic initiative of its own. However, Prince George has been identified as a possible inter-modal facility site and efforts appear to be underway to establish such a facility there. It is important to investigate the level of progress made to date in Prince George and asses the realistic possibility of establishing a second such facility in Smithers. A heightened level of activity at the port in Prince Rupert could make a second such site in Smithers viable.
The idea of Smithers serving as an amenity destination, or fly-in fly-out home base for the oil sands operations in Alberta has been raised by the committee. To be successful will require a dedicated effort in research, relationship building and negotiating arrangements, in addition to ensuring the necessary infrastructure is in place to maximize the ease and convenience of travel between the locations. The issue has been researched by Raymond Chipeniuk for the Real Estate Foundation of BC on best practices for fly-in fly-out amenity destination to serve the oil sands operations in Alberta.
Strategy 8 Action Steps - SEDO 1. Investigate feasibility of locating an inter-modal rail-truck facility in Smithers; Community Economic - Review the report Northern B.C. Container Terminal Opportunity Development Study Study by Intervistas Consulting, available at http://www.nditrust. ca/docs/Northern_BC_Intermodal.pdf. From Boomtown to - Contact Larry Yurkiw, CN Rail in Edmonton. Mr. Yurkiw was unable Sustainable Town to attend the focus groups in October, but indicted his willingness to speak, one-on-one to individuals from the community about CN’s infrastructure. FINAL REPORT
2. Investigate feasibility of Smithers serving as a fly-in Prepared for fly-out base for workers in the oil sands in Alberta and Saskatchewan. Economic Development - Review the Real Estate Foundation of BC Committee report when published and contact Ray Chipeniuk to discuss findings (http://www. Town of Smithers realestatefoundation.com/).
- Contact Jacob Irving, Executive Director of March 2008 the Athabasca Regional Issues Working Group
Page 15 (RWIG) in Fort McMurray. The RIWG works to identify and resolve issues related to oil sands development in the region around Fort McMurray. They work closely with industry representatives, oil sands developers, local and provincial governments, aboriginal peoples, and numerous other regional organizations and would be a good source of information about companies that emphasize fly-in fly-out commuting that may be interested in developing a relationship with Smithers.
- Attend trade shows related to the oil sands developments in Alberta to learn more about the possibility of and requirements for establishing a fly-in fly-out base in Smithers and, when the timing is appropriate (i.e., infrastructure to support a fly-in fly-out operation is in place), promote the town as an appealing base. The successful 2007 Fort McMurray trade fair had 18,000 attendees in three days. Communities promoting their amenities and appealing quality of life for oils sands workers exhibit at the trade show. Unfortunately, delays in construction of the Fort McMurray exhibition site have caused the 2008 trade show to be cancelled. Investigate the suitability of attending other trade shows. Consider:
* Oil Sands Trade Show & Conference to be held September 23 & 24, 2008 in Edmonton at Northlands. Over 8,100 delegates and 710 exhibiting companies attended the 2007 event. Information at http://www.petroleumshow.com/oilsands/
* 20th Global Petroleum Show to be held June 10 – 12, 2008 at Stampede Park, Calgary. Information at http://www. petroleumshow.com/globalpetroleum/page.cfm/ID=1/ trackLogID=345351_37982C7AC5.
3.2 Accommodating Strategies Strategies 9 to 12 — accommodating strategies — enhance the Town’s ability to support the new growth. They aim to improve the local climate for economic Community Economic growth generally, and within targeted business sectors specifically. Accommodating Development Study strategies decrease uncertainty, facilitate investment both by outside firms looking to enter the Smithers market and local firms looking to expand, or stay in the local area. From Boomtown to Sustainable Town Accommodating Strategies that the Town can implement directly include actions related to OCP policies and approach to development, land use designations, urban design guidelines, and internal policies, regulations and practices related to FINAL REPORT the business sector and development. Prepared for
Strategy 9: Building on Existing Town Quality Economic The Town is blessed with natural beauty and climatic conditions that are the envy Development of many of its BC counterparts. Located on the east side of the BC Coast mountain Committee range and in the Bulkley Valley, Smithers has a moderate climate with all-season recreation opportunities. The Town’s boundaries and built environment is clearly Town of Smithers demarcated by the Bulkley River, rich farm lands of the Bulkley Valley, emerald Lake Katlin, and the Coast mountain range, in particular Hudson Bay Mountain. March 2008
Page 16 These physical boundaries have shaped Smither’s identify and resulted in a liveable, compact community. The town is 1,629 ha in area and features approximately 48 kms of paved roads, 10 kms of unpaved roads and 72 ha of public park and open space. Few other towns in BC can claim these features, particularly in the context of the focus on smart growth, sustainability, and minimizing carbon footprint. Smithers has the physical and institutional fabric to become a leader in these initiatives and in doing so, become an attractive candidate for new capital investment and in-migration based on lifestyle decisions. As an attractor, both the natural surroundings and the physical form combine to make Smithers an attractive community to settle in or to establish a new business.
The Town must continue to pay special attention to developing a strong Main Street and immediate adjacent streets. The future attraction of the town to investors and new residents will depend on a number of factors, not the least of which is the quality and character of the town. A vital and vibrant downtown that evokes character, a comfortable public realm, and public gathering places and linkages to the rest of the community will be an attractor to new families as a liveable place to live and work. It will help attract skilled and professional workers and complement the concept of encouraging a mining business cluster and an expanded training cluster for mining.
While the current Community Plan and zoning by-law supports a strong central area, Smithers should design for denser development close to the core and encourage infill and retrofitting of historic buildings. To encourage and promote downtown development the Town should consider the following action steps.
Strategy 9 Action Steps — Town 1. As part of the Community Plan review process, establish a Downtown Advisory Committee that includes the Chamber of Commerce and downtown business community representatives; Community Economic Development Study 2. Retain a facilitator to engage in a design charette process focusing on the downtown area to show the kinds of mixed-use development that could take place. Included in this process would be a review of the From Boomtown to design guidelines now in place; Sustainable Town 3. Consider provincial revitalization tax exemption legislation to remove tax disincentives for building upgrades to encourage downtown FINAL REPORT development; 4. Review the Parks and Recreation Master Plan, focusing on green Prepared for space and trail corridors linkages connecting Main Street to Heritage Economic Park. Consider developing a plan for a pedestrian trestle over the Development railyards from downtown. A gondola from downtown to the Hudson Committee Bay Mountain has been deliberated for many years. While financially difficult to justify, it is a concept that should not be discounted over Town of Smithers the long-term; and
5. The Town has chosen not to incorporate Development Cost Charges March 2008 (DCCs) as part of its budgeting and longer-term infrastructure
Page 17 replacement planning. Many communities have relied on DCCs to make substantial public investments that have significantly enhanced the liveability of their communities. As of 2009, BC communities will be required to establish a Tangible Capital Asset Plan (TCAP) where municipalities have to account for and depreciate all tangible assets including infrastructure, buildings, furniture and fixtures. In the context of this new legislation, it would be a worthwhile exercise to examine DCCs in Smithers. This process should include the development of a five to 10 year financial plan including major infrastructure construction and redevelopment needs and the potential impact on assessments and tax rates. Strategy 10: Plan For Future Residential Development Taking Cues from Existing Development Patterns Smithers’s natural physical boundaries have limited sprawl and created compact residential neighbourhoods. All serviced residential neighbourhoods are within 1,200 m of Main Street and Highway 16 and are within walking distance to its downtown core, civic and recreational facilities. These features are the envy of many sprawling communities and make it easy for Smithers to further embrace “smart growth” and green development practices. These are features that the community can “boast” about in marketing itself as a liveable, green community, and are something that the Town should promote proudly.
With virtually static population growth over the past ten years, demand for new housing has been small, although since 2006 vacant residential lots including the town's Willowdale subdivision have experienced a significant spike in sales. The housing stock consists of proportionally fewer detached dwelling units than the provincial average and housing costs, although perceived by the community as being high, are considerably lower than the provincial average (Appendix A). The Town must plan for longer term residential development as a shortage in the supply of serviced land will lead to higher land and housing costs. Smithers is in the enviable position of having both sanitary sewer and water supply systems with have additional capacity to accommodate expansion. Many communities struggle with servicing issues and the costs needed for upgrading their systems. The Town Community Economic should take pride in how it has planned and operated its servicing infrastructure. Development Study
Strategy 10 Action Steps — Town From Boomtown to 1. Undertake an inventory of the residential land supply and Sustainable Town development opportunities (number of units and potential mix of units) under existing zoning and within the current municipal boundaries of the Town. Do this as part of the OCP process; FINAL REPORT
2. Encourage secondary suites within residential districts, as a means of Prepared for providing affordable housing; Economic 3. Undertake a planning exercise to identify specifically what kind Development of residential development is desired on the City and Crown- Committee owned land near Willowvale. This is currently in the OCP for single family residential. It is recommended that it be zoned for more Town of Smithers comprehensive development;
4. Coordinate, with the support of SEDO, a call for proposals from March 2008 developers to develop Town and Crown-owned land, based on outcome
Page 18 of planning exercise in Step 3. The Economic Development Officer’s knowledge of real estate and skills in negotiations will be an important asset in coordinating this activity; 5. As part of the OCP review, identify locations for affordable seniors’ housing. Use the City-owned land for future seniors housing, or trade for land in a location that is more appropriate for a community-based seniors housing project. Smithers is in the same position as many communities in that it will be facing a growing demand for seniors housing. Smithers has an advantage in addressing this growing demand because of the amount of publicly-owned, serviced land within its boundaries; and 6. Designate the area near Lake Kathlyn for future green residential development. The Lake Kathlyn lands are a strong candidate for future expansion because of the proximity to services and amenities. Given the emphasis toward “green” neighbourhoods, assess the viability of using the area as a “demonstration” green neighbourhood, which could tie into the Town’s economic as well as social and environmental development. Strategy 11: Expand And Prepare Smithers’ Industrial Land Base For Economic Growth Smithers’ industrial lands are located primarily on the south end of town, with service-oriented industrial activities along Highway 16 and Frontage Road. A look at the zoning map immediately suggests a disproportionately large part of the land base allocated for industrial use, compared to residential and commercially designated land. Nevertheless, anecdotal comments from business owners in Smithers indicate that there is a shortage of industrial land available. Furthermore, successful implementation of a Resource-Based Industry Service and Supply Cluster will generate continued absorption of industrial land, and the restrictive municipal boundaries offer little additional space to accommodate expansion of industrial activity. Community Economic Development Study We recommend that the Town analyze use and development patterns to determine if replotting of existing lands could open up under utilized lands and maximize their efficient use. Going forward, it is imperative that the town identify options From Boomtown to for maintaining a marketable supply of industrial land. A marketable supply refers Sustainable Town to an inventory of vacant, designated land for industrial uses in parcels of varying sizes, held by a variety of owners, in varying locations, and with appropriate FINAL REPORT transportation linkages (adequate road, rail connections or locations adjacent to the airport) to allow for a diversity of land users to find workable parcels to carry Prepared for out their business as efficiently as possible. Economic In addition, we recommend that the Town identify new land for industrial Development growth and take steps to prepare it for easy uptake by new business investors, in Committee particular in the mining service support and supply sector. The newly extended Town of Smithers runway at the Smithers Airport will play an important role in facilitating economic expansion and the surrounding lands are an ideal location for new industrial development. The lands around the airport are located within the Agricultural March 2008 Land Reserve and would require removal from the reserve. Much of the land
Page 19 around the airport is owned by the Town, located within the municipal boundaries and serviced by the Town’s sewage system. This makes the area relatively easy to develop, although the water system would likely have to be extended to the airport lands, which are currently serviced by a separate well system. Along with immediate proximity to the airport, this area is ideal for service and supply- related businesses to locate.
Current OCP land use designations permit a limited amount of office space on industrial sites. The goal of this policy is to encourage office development in the downtown core. However, in the interest of encouraging growth in the resource- based servicing sector, a sector whose use of industrial and office floor space is blurring, the Town might consider redefinition of its industrial land designations to allow for a larger amount of office-type space within industrial areas. Numerous activities related to precision manufacturing, technical services, surveying activities etc. require significantly larger portions of their business to occur in office-like settings than had been the case with industrial users in the past.
Strategy 11 Action Steps — Town 1. As part of the OCP review process, undertake an inventory of:
- Existing industrial land;
- Types of current industrial land users and nature of the business;
- Intensity of industrial land use and the degree to which it is being utilized; and
- Opportunities for future industry development, given the existing industrial land supply and zoning designations.
2. Evaluate how the existing industrial lands may be re-plotted to ensure lands are used to their full capacity and industrial growth potential is maximized; 3. Undertake as a priority a detailed assessment of the costs to zone, service and develop airport lands for industrial land use and business Community Economic development; and Development Study 4. Redefine industrial land use designations to permit more office space within industrial areas. From Boomtown to Strategy 12: Encourage More Efficient Regulatory Process for New Sustainable Town Investment Consultation with local stakeholders indicates some perceived challenges by the business community related to the timely acquisition of permits and approvals FINAL REPORT of local area investment. From a business perspective, uncertainty around Prepared for approvals represents a significant risk factor in choosing where to locate.This makes the streamlining of approval processes one of the simplest ways in which a Economic municipality can facilitate new development within the community. Development Committee Other nearby communities, for example Prince George, publicize development permit processing times of as little as two weeks, and building permit issuances in Town of Smithers as little at 48 hours. This represents a significant advantage on one hand, but can also hinder a community’s ability to shape new development. March 2008
Page 20 Going forward, Smithers should aim to strike a balance by actively looking for opportunities to streamline its development approval process and foster an “open for business” attitude within the community, while preserving its ability to use new development to enhance the community’s quality of life and meet community goals.
Strategy 12 Action Steps — Town 1. Determine a permitting protocol that minimizes time and complexity of the approval process for new projects in Smithers that still respects the need for local input and the achievement of the community’s development goals. As part of this protocol, determine which types of projects (based on project type, location, etc.) will qualify for this expedited process; 2. Publicize this protocol as part of the broader business attraction and marketing program; 3. Set the Open for Business tone of working from the top. The CAO’s and senior management’s positions and practices towards new business possibilities will reflect in working practices of all the staff; and 4. Review precedents in other municipalities and take what works for the Smithers context, e.g. Langford (see http://www.regulatoryreform. gov.bc.ca/bp.htm, under Municipal Best Practices and Langford: Corporate Culture, Accomplishments and Development Regulation), Prince George and Kamloops. 3.3 Summary of Strategies for Economic Development Attraction Strategies Create a Sustainable Economic Development Office for Town of Smithers #1 in Conjunction with Electoral Area “A” of the Regional District of Bulkley Nechako ..
Build a Resource-Based Industry Supply and Services Cluster in Smithers, #2 Focussing Initially on Mining Supply and Services. Community Economic Support the on-going work of the Smithers Exploration Group (SEG) and School #3 of Exploration and Mining (SEM), to offer courses geared to the exploration Development Study and mining industry.
Support The Development Of New Products From Forest-Based Biomass, #4 From Boomtown to Including Bio-Energy. Sustainable Town #5 Support The Existing Agriculture Industry.
#6 Encourage the Development and Marketing of Smithers’ Tourism Products. FINAL REPORT #7 Enhance the Quality and Availability of Local Market Information. Prepared for Keep Current and Actively Research Additional Resource-Based Industry #8 Development Strategies. Economic Accommodating Strategies Development Committee #9 Building on Existing Town Quality. Plan For Future Residential Development Taking Cues from Existing Town of Smithers #10 Development Patterns. #11 Expand And Prepare The Town’s Industrial Land Base For Economic Growth. March 2008 #12 Encourage More Efficient Regulatory Process for New Investment.
Page 21 4.0 In Closing The above strategies are presented to the Town of Smithers with the knowledge that there is no silver bullet for sustainable economic development. It is a process and it is in constant change. We have proposed strategies that support diversification across industry sectors and within the mining supply and services sector. There exists an opportunity now to capitalize on robust activity in the BC mining industry to build a supply and services cluster that not only serves mines in the surrounding region, but also would serve the industry around the country and the world - injecting geographic diversity within the sector.
In addition to strategies that reflect corporate, community and best practice case study research , we recommend that the Town commit to a deliberate economic growth initiative, and invest public funds to create a dedicated economic development function — a Sustainable Economic Development Office. Thoughtful creation of this organization, and strategic hiring of a senior Economic Development Officer to lead it, is the best opportunity to build a sustainable and vibrant Town of Smithers.
Community Economic Development Study
From Boomtown to Sustainable Town
FINAL REPORT
Prepared for
Economic Development Committee
Town of Smithers
March 2008
Page 22 APPENDIX A: FACTS ABOUT SMITHERS
Community Economic Development Study
From Boomtown to Sustainable Town
FINAL REPORT
Prepared for
Economic Development Committee
Town of Smithers
March 2008 The Facts About Smithers
Population and Demographic Change The Town of Smithers is a community of 5,217 residents situated approximately 371 kilometres west of Prince George, and approximately 350 kilometres east of Prince Rupert. Smithers was founded to service the development and expansion of the forestry, mining and transportation industries in northern BC during the early 1900’s. Varying economic conditions in the forestry and public service sectors, coupled with an aging population have driven modest, though consistent, population declines in Smithers over the past decade. Overall, the Town of Smithers saw its population decline by 0.7% on an average annual basis. The Smithers region, as represented by the boundaries of School District 54 (Bulkley), declined a slightly slower average rate of 0.4% annually.
Smithers and Area Population Change 1996-2006 Avg. Annual School Avg. Annual Year Smithers Change District 54 Change 1996 5,624 17,212 2001 5,414 -0.7% 17,155 -0.4% 2006 5,217 16,457
Source: Statistics Canada and BC STATS
Demographically, population decline in Smithers has tended to occur in the younger age groups (44 and younger), primarily the 25-44 year old age group. In contrast, declines in these younger age categories were mitigated somewhat by gains in the older (45 and above) age categories. For illustrative purposes the chart below details the change in population at each age group between 2001 and 2006.
Smithers Population Change By Age Group 2001-2006
2001 2006 Age % Change Population Population
< 19 1,760 1,580 -10.2%
20 – 24 340 315 -7.4%
25 – 44 1,665 1,397 -16.1%
45 – 64 1,123 1,340 19.3%
> 65 525 585 11.4%
Source: Statistics Canada (2006)
The rather stark prevailing trend in these figures indicates that the community is rapidly aging. Between 1996 and 2006, the median age of the Town of Smithers has increased by 4.5 years from 31.6 to 36.1. This is significantly faster than the rate of increase for the province as a whole. During the same period, BC saw its average age increase by 3.5 years.
Appendix A - 1 Over the next 25 years, BC Stats projections suggest that population change in Smithers will shift from decline to modest growth. Forecasts indicate future population growth of the Smithers Region (again as represented by School District 54) will average between 0.3% and 0.1% annually to 2031.
Smithers and Area Population Projections 2006-2031 Year School District 54 % Change 2006 16,457 - - - 2011 16,609 0.2% 2016 16,820 0.3% 2021 16,958 0.2% 2026 17,043 0.1% 2031 17,117 0.1% Source: BC Stats (2006)
Historically, the Town of Smithers has represented between 29 and 32% of the total population within the Bulkley Valley School District. Therefore, assuming that this proportion is maintained, the growth projections prepared by BC Stats indicate the potential for perhaps an additional 190 to 210 additional town residents by 2031. This would see the population of the Town of Smithers increase to approximately 5400 residents by 2031.
Economic Base in Smithers Historically, economic development in Smithers has been, to varying degrees, dependent on the primary industries such as agriculture, forestry and mining. However along with these traditional industries, data collected by Statistics Canada indicate that the community’s economic base (as evidenced by local employment figures) is made up primarily by activities in the secondary and tertiary sectors of the economy. While the town exhibits a higher than average proportion of total employment in the Forestry & Logging and Mining, Oil& Gas sectors, the majority share of labour force participation is in the services sectors (retail, business services, and the government, followed by wholesale and retail sectors as well as the government and health & education sectors) all of which exhibit higher proportions of employment than the provincial average.
Percentage of Total Labour Force by Industry Sector (2001) Smithers BC
Forestry & Logging 3.30% 1.20% Mining, Oil & Gas 2.90% 0.70% Construction 4.50% 5.90% Manufacturing 8.90% 9.60% Transportation, Warehousing & Utilities 6.60% 6.30% Wholesale Trade 1.30% 4.10% Retail Trade 14.30% 11.60%
Appendix A - 2 Percentage of Total Labour Force by Industry Sector (2001) Smithers BC Finance, Insurance, Real Estate & Leasing 4.50% 6.10% Business Services 26.50% 32.10% Health and Education 18.30% 16.80% Government 8.90% 5.60%
Total 100.00% 100.00%
Source: Statistics Canada (2001)
Analysis undertake by BC Stats has shown a significant dependence on the forestry sector in the Smithers region. While this is true for the broader Bulkley-Nechako regional district, where more than a quarter of the jobs in are directly related to the forest industry, the Town of Smithers exhibits a significantly lower proportion of just over 10%. Overall, the region around Smithers exhibits more than three times the proportion of labour force in logging/forestry activities than the Town (10.4% vs. 3.3%) and more than double the number of workers engaged in wood product manufacturing (16% vs. 7.1% for the Town of Smithers). What this means is that while the Town of Smithers is economically dependent on resource industries such as forestry, they do not make up an overwhelming proportion of jobs in the community. In fact, the town shows a relatively high level of economic diversity than might be expected in a northern community of its size. This diversity is evident in a list of some of the town’s largest employers which represent a wide range of sectors including the government and retail sectors. These include the Northern Health Authority (400 employees), Pacific Inland Resources Canada (191) and Safeway (115). The Boston Pizza restaurant, the provincial Ministry of Water Land and Air Protection, and the Northern Engineered Wood Products Ltd. (Newpro) plant all employ 55 – 60 people each. It should be noted that since 2001, provincial government restructuring has caused a decrease in government activities within the Town of Smithers. While the exact impact of this restructuring is not yet known, it is likely that the proportion of total employment within the Government, and Health & Education sectors has likely decreased between 2001 and 2007. Further, anecdotal evidence suggests that rising commodities prices globally and changing government policies related to resource extraction has increased the amount of mineral exploration and extraction activity in Northern BC generally, and Smithers specifically. This suggests the share of employment within this sector is likely higher than previously recorded.
Housing and Real Estate The real estate market in northern BC is currently very active. Over the past year the BC Northern Real Estate Board reports average housing price increases of just over 16% for the year. Communities such as Prince George, Fort St. John and Prince Rupert have reported year- on-year increases of 32%, 22%, and 23% respectively. In Smithers, growth in housing prices has steadily increased after a dramatic decrease in prices in 2001. At that time, the town saw average prices fall approximately 25% due to a provincial restructuring initiative and related sudden decline in local employment. Since that time, prices have steadily appreciated, though at a more modest rate than that seen in some other
Appendix A - 3 northern BC communities. As of April 2007, the average price of a single-detached home was approximately $177,600, compared to $160,866 a year earlier, a 10.4% increase.
Average House Prices – Select Northern BC Communities
Average Price Percentage Increase (As of April 2007) (Year on Year)
Kitimat-Terrace $144,349 15.3%
Prince Rupert $152,336 23.4% Smithers $177,597 10.4% Fort Nelson $219,569 2.2% Williams Lake $191,505 16.1% Prince George $232,951 32.2% Fort St. John $294,907 21.5%
Source: BC Northern Real Estate Board (April 2007) In terms of volume, there has been a 23% increase in the number of all properties sold in the first nine months of 2007 compared to 2006. Roughly the same number of single detached homes sold this year to date compared to last year. Housing Affordability Housing affordability refers to the cost of housing in a given area in relation to the ability of that area’s residents to manage the cost of local housing. Affordability is most often assessed through the use of an affordability index, which in this case provides an indication of the relative costs of home ownership by measuring the proportion of the median household income required to service the cost of the average-priced single-family home on a lot less than an acre in size. By this measure, the Town of Smithers falls at the low end of a spectrum of seven northern BC communities with an affordability index of 3.2 due to its relatively higher median family incomes and modest cost of housing. While this index value is higher than that assessed for Prince Rupert and Kitimat-Terrace (3.1 and 2.4 respectively), it is lower than that assessed for Fort Nelson (3.3), Williams Lake (3.8), Prince George (4.4), and Fort St. John (48). It is also significantly lower than the average affordability index score for BC, which was assessed to be 8.3.
Appendix A - 4 Source: Statistics Canada (2001) and BC Northern Real Estate Board (April 2007)
Given the high cost of housing in BC, Smithers represents a relative deal in terms of housing affordability in the province. While not a driver of new economic growth on its own, the relative affordability of housing in Smithers has some potential as an asset in terms attracting new residents and in facilitating economic development opportunities. Housing Type and Tenure Most homes in Smithers are single detached homes. There are relatively few high-density housing units. Most dwellings are owned (68%) and about 70% of the housing stock is more than 20 years old.
Privately Occupied Homes (2006 Census) Smithers BC Single detached 66.3% 49.0%
Semi, row homes 8.4% 10.0%
Apartments 17.3% 38.0%
Other 8.4% 2.8%
Transportation The Town of Smithers enjoys significant transportation connectivity for a town its size. Located in close proximity to an international port, and connected to larger centres provincially and nationally by a local airport, significant passenger and freight rail infrastructure, and the provincial highway system, Smithers is well positioned to move people and goods in and out of the community. Its location approximately 350 kilometres from Prince Rupert provides a direct connection to economies in the Asia-Pacific region. With container traffic to all west coast ports forecast to rise 300% by 2020 (BC MOT website), the provincial and federal governments have invested heavily in expansion of the Port of Prince Rupert. An expanded port has the potential to increase market share for BC ports and shift traffic away from southern ports which are currently at or near capacity. Smithers is well connected to points elsewhere in BC, other markets across Canada and the US, via an efficient rail network. Locally, the town is home to CN Rail freight and passenger main and branch lines as well as a switching yard.
Appendix A - 5 Over the next several years a federal government program will work to eliminate level crossing in Smithers, improving the efficiency of rail traffic through the community. As well, in order to fully realize the design capacity of Prince Rupert’s new container terminal, sidings along this rail corridor are being lengthened to accommodate trains up to 12,000 feet long, further improving the movement of rail traffic within the region. This port expansion in Prince Rupert, coupled with the expected development of an inland intermodal rail-to-truck facility in Prince George, places Smithers (which is located approximately half-way between Prince Rupert and Prince George) in a strategic position, allowing for local businesses access to international markets in Asia as well as major North American cities. Smithers, unlike many other smaller communities, is home to a regional airport with regularly scheduled service by major and regional carriers including, Air Canada Jazz, Central Mountain Air, Hawk Air, and Northern Thunderbird Air. This provides convenient daily connection to Vancouver and its international airport. Recently, funding was announced to extend the runway at the Smithers airport from 5,000 ft to 7,500 ft, to accommodate a wider variety of planes, and conceivably expand service to other areas. This work is to be completed by Fall 2008, creating potential for improved connection between Smithers and international airports in BC or Alberta.
Land Base The land area of Smithers is 15.69 km2 (1569 ha) or 3,877 acres. The Town is divided into zones that differ according to the types and intensity of development that may occur. The Smithers zoning map identifies the zones designated by the Town. There are five categories of zones. Zoning Map Observations:
Zoning Map Observations Agricultural Zones • Some agriculture along the river towards the east • Some agriculture very close to downtown Residential Zones • Most residential land is zoned low density – either single family or low density residential • Small pockets of medium density residential and duplex residential Industrial Zones • Medium and light industrial located to the south and east • Heavy industry located to the south and west Public Amenity Zones • Parkland to the east along the river Commercial Zones • Tourist commercial along main highway
Retail Retail floor space in Smithers is located primarily in two areas: the downtown core area flanking Main Street, and along the Yellowhead Highway. The downtown core features an active array of smaller, independent retailers and benefits from Smithers Mall as a major
Appendix A - 6 traffic generator. Retail along Highway 16 tends to focus more on larger-format retail options as well as tourist-focused commercial development. Currently no data is available on local retail inventory and retail spending in Smithers. However despite the town’s active retail sector, it is certain that Smithers experiences some outflow of retail spending to larger retail centres such as Terrace, Prince George and Prince Rupert, representing lost economic potential. Going forward, expansion of the retail floor space inventory within the town will have the effect of repatriating some of this lost spending over time, creating local economic development opportunities, and strengthening the retail sector in the town overall.
Tourism Located in the attractive Bulkley Valley between the Hudson Bay Mountain to the west and the Babine Mountain range to the east, Smithers offers outstanding outdoor recreational pursuits for visitors throughout the year. This includes fishing and hunting, downhill and cross-country skiing, golfing, snowmobiling, canoeing and kayaking. Coupled with a range of urban features such as cultural pursuits and indoor recreation opportunities, Smithers provides a full range of tourism attractions. In 2007 more than 72,000 visitors passed through the Smithers Regional Airport. This represents an annual increase of 21.5% over 2006 volumes, which themselves were 3.5% over 2005 volumes. However, mining industry activity likely contributed to this activity. Overall, Smithers has a number of significant tourism assets, yet total visitor volume is still small. This is due to some degree by the scale of tourism infrastructure in the town (number of hotel rooms, attractions, event space, ski runs, etc.) relative to other areas of the province. However, local assets and community feedback indicate that this is a potential area for growth within the region that can be built upon to a positive end.
External Factors Mining Activity The BC Government reports that 2007 was a strong year for mining in Northwest BC, with “robust mine performance, great strides toward new mines and a frenetic pace of exploration”. Approximately $385 million was spent on construction and development activities towards eventual production. The Ruby Creek mine will go to production. While the Galore Creek construction has been halted, the company is reviewing alternative development strategies with a view to getting it going again. The withdrawal of government funding for an expanded power grid further into northwest BC because of the Galore Creek stoppage is a loss for the region as it could attract further mining development as well as serve remote communities that currently rely on diesel generation. Five mine projects made their way through the Environmental Assessment (EA) process including the Davidson molybdenum mine located adjacent to Smithers. Four more mine projects are expected to begin the EA process in 2008. Exploration spending in 2007 was up 30% compared to 2006 and supported the start-up of several new diamond drilling contractors. There are a great many potential opportunities in the mining sector in northwest BC and the BC Ministry of Energy Mines and Petroleum Resources reports that 2008 could be a pivotal year for positive growth in the sector. The Galore Creek closure illustrates the volatility and risk associated with this sector, but the potential for strong growth is a compelling reason for the Town of Smithers to support the development of a hub of businesses that provide services to the mining sector. It will be important to ensure that those businesses can provide services to mines in other locations including mines around the world, and to other resource-based
Appendix A - 7 industries, thus building in diversity and the cushioning required to roll with any sudden changes in the local mining context. Regional Competition It is important to note that as Smithers looks to encourage sustainable economic development, so too are many other communities in northern BC as well as elsewhere. Prince George has undertaken a number of initiatives aimed at attracting investment including the creation of an arms-length economic development corporation (Initiatives Prince George), a new downtown investment marketing and branding scheme, and opened an office in downtown Vancouver as a means of attracting investment. The City of Kamloops has recently rebranded and relaunched its tourism marketing program and has won an award from the Economic Development Association of Canada for its efforts. All of this is to say that in trying to attract and grow economically Smithers is not only looking to get investors, firms, and visitors excited about the Town of Smithers, but they are also looking to get these individuals and groups to be more excited about Smithers than they are about other communities in northern BC and elsewhere in the country. This will call for a clear message on behalf of the town that goes beyond the “great place to live, work, and play” that so many communities utilize as part of their economic development strategies. Based on the research above, messages that highlight Smithers’ specific attributes have the most chance of being successful. These include its strategic location amongst numerous resource development activities, its linkages to the rest of the province and (via Vancouver) the rest of the world, as well as both its attractive built and natural environment.
Appendix A - 8 APPENDIX B: CONTACT Information
Community Economic Development Study
From Boomtown to Sustainable Town
FINAL REPORT
Prepared for
Economic Development Committee
Town of Smithers
March 2008 Appendix B: Contact Information
LAST NAME FIRST NAME COMPANY PHONE NUMBER EMAIL
Chipiniuk Ray University of Northern British Columbia 250.847.5758 [email protected]
Cox Jamie Ski Smithers [email protected]
Curry Robin Northgate 250.77.7756 [email protected]
Davidson Gillian Rescan Environmental 604.689.9460
Davidson Jim Town of Smithers 250.847.1600 [email protected]
Frank Al NovaGold 250.720.7288 (cell) [email protected]
Goyman John Western Keltic Mines Inc. 250.877.7898 [email protected]
Graff Bruce Graff Engineering 250.847.4933 Executive Director of the Athabasca Irving Jacob 780.790.1999 Regional Issues Working Group (RWIG) Jenne Kara NWCC, School of Exploration and Mining 250.847.4461 [email protected]
Jennings Steven Rescan Environmental 250.638.1851
Association for Mineral Exploration BC Jepsen Dan 604.689.5271 [email protected] (AME BC)
Kennedy Heather Suncorp 780.743.6861 [email protected]
Cattleman's Association & Northwest Kerr Harold 250.846.5412 Premium Meats Oliver & District Community Economic Les Lawther 250.498.828 [email protected] Development Society
L'Orsay Judy NWCC, School of Exploration and Mining 250.847.9580 604.669.8959 Lebel Pierre Imperial Metals [email protected] Ext. 656 Mallory Jim NovaGold 604.669.6227 [email protected]
Appendix B - 1 Appendix B: Contact Information
LAST NAME FIRST NAME COMPANY PHONE NUMBER EMAIL
Moore Tracy NWCC, School of Exploration and Mining 250.847.4461 [email protected]
Newpro (Northern Engineering Wood Norton Richard 250.847.4394 [email protected] Products Inc.)
Peck Dennis Regional Municipality of Wood Buffalo 780.743.7884 [email protected]
Shumsky Barbara Syncrude 780.790.6270 [email protected]
Smith Barry Skeena Stikine Forest District 250.847.6300 [email protected]
Smith Kevin Suncorp 780.713.3179 [email protected] Blue Pearl/Thompson Creek Minerals Stewart Marilyn 250.877.6121 [email protected] Company Thompson Gary Low Profile Exploration 250.845.2253
Blue Pearl/Thompson Creek Minerals Tredger Peter 604.669.1668 [email protected] Company
Tremblay Harvey Hy-Tech Drilling Ltd. 250.847.9301 [email protected]
Van Tighem Gordon City of Yellowknife 867.920.5693 CJL Entreprises and Smithers Exploration Warren Chris 250.877.0032 [email protected] Group Ministry of EMPR and Smithers Exploration Wojdak Paul 250.847.7391 [email protected] Group Yurkiw Larry CN Rail 780.421.6233
Appendix B - 2 APPENDIX C: BYLAWS FROM ODCEDS
Community Economic Development Study
From Boomtown to Sustainable Town
FINAL REPORT
Prepared for
Economic Development Committee
Town of Smithers
March 2008