Edmonton's economic agency could see reduced role, downsizing

The economic arm within theCity of Edmonton could be downsizedifshareholders agree with recommendations outlined ina new report made public Tuesday.

The report, prepared by Ernst & Young, recommends the city change the Edmonton Economic Development Corporation's mandate to focus only on operating two convention centres the EXPO Centre at the Edmonton Exhibition Landssite and the Edmonton Convention Centre downtown and attracting tourism.

Right now, the EEDC manages these two areas andfour groups under its Innovate Edmonton branch: StartUp Edmonton, Edmonton Made, InnovateYEG and the Advanced Technology Centre.

Councillor Sarah Hamilton said for as long as she can remember, the business community has been questioning how effectively the EEDC helps the local economy.

"They were not doing that work in terms of helping local businesses, for instance, connect with resources," she said.

Hamilton expects the recommendations will helpcouncil to make noticeable changes.

"City council hasn't been super clear on what our direction should be in this space," she said. "What we'll hear time and again is that we actually need to be really firm and decisive, and it's time to be firm and decisive on the issue of the EEDC."

She noted that the EEDC used to foster trade and attract foreign direct investment until Edmonton Global a regional body of 14 municipalities was created in 2017 and picked up most of this work.

• Mayor touts Edmonton Global as highlight of 2017
• Edmonton destined to be health innovation hub, says medical task force

City council asked for thereport in September, to help clarify the roles ofEdmonton Global and EEDC in attracting investment and trade.

An audit on the EEDC was released in November, calling forsimilar clarity.

The consultants also recommend the city create a separate innovation authority with its own board of governors that would oversee TEC Edmonton, Start-Up Edmonton, Edmonton Screen Industries Office and Health City.

The report also calls for the city to put moreresources into retaining businesses, currently done within the city's urban form branch.

The recommendations are up for public discussion at a meeting Wednesday.

Council can vote todevelop an innovation authority but the shareholder group namely representatives from the City of Edmonton must vote separately on whether to alter the EEDC's mandate. That's expected at a meeting in January.

• Audit calls on Edmonton's economic agency to clarify what it does
• Edmonton councillors call for accountability of city's economic agency

In a statement posted on Twitter Tuesday, CEO of EEDC, Derek Hudson, said his management group will need time to review the recommendations before responding.

"I have been very clear over the last several months that I am open to looking at all the potential options," he said in the statement.

He welcomed the Ernst & Young report and said the information will help focus the discussion.

• New CEO bent on revamped mandate for Edmonton Economic Development Corporation

"At the end of the day, EEDC has always been about maximizing value for Edmontonians and that does not change."

Common themes

In arriving at their findings, Ernst & Young consulted dozens of people, including Downtown Business Association executive director Ian O'Donnell and Chamber of Commerce boss, Janet Riopel, along with several councillors.

It identified common themes among the respondents.

• Roles and responsibilities are not clear between the EEDC and Edmonton Global
• Lack of trust and confidence
• Overlap and duplication of effort
• Lack of accountability and limited key performance measures relative to EEDC for FDI, Trade and innovation activities
• Confusion and frustration across the board

If implemented, the changes would relateto governance, accountability and oversight and hopefully not impact jobs, said Mayor Don Iveson.

"There is a significant restructuring proposal and while that will create some uncertainty for folks working in some of the different organizations, I want to reassure them, regardless of what happens, the work they do is really important to the city's prosperity."

Hudson also noted EEDC employs 1,400 full time, part time and program employees.

The group has boosted the city's GDP BY $850 million over the last four years, he said.

$20M budget

The report and ensuing discussions will inevitably lead council to reevaluate the agency's $20 million annual budget, said Hamilton.

"It's a good time to talk about what the new budget for the entity would look like," she said.

Hudson noted that a quarter of the EEDC'sfunding comes from the City of Edmonton, with the balance derived fromrevenues and expenses at "two world-class venues," partnerships between EEDC and the University of Alberta, and funding fromthe provincial and federal governments.

Council will likely not have an opportunity to reevaluate the EEDC budget during the final budget discussions ofthe city's operating and capital budgets this week.

@natashariebe