Proposal for a Mc Kellar Township Economic Development

Proposal for a Mc. Kellar Township Economic Development Corporation (EDCorp) by the Mc. Kellar Township Business, Economic Development and Tourism (BEDT) Ad Hoc Committee

Examples of local not-for-profit corporations Longhorn Conservation Association

The EDCorp: definitions • non-profit corporation (no money to members, no shares) • registered with Ontario • money raised used for expenses and paying for projects • non-charitable OR charitable • can do fund-raising • focus on economic development and tourism

The EDCorp: advantages • Liability: members have limited legal • • responsibility (liability) LESS THAN councilors Fund Raising: can raise money (e. g. lotteries, management services) that the township can’t Permanence: once established, it can operated uninterrupted through future elections Members: no restrictions on number and type, can attract experienced business people Cost: less cost to the township than a standing committee

The EDCorp: its structure • EDC members will be volunteers (preferably with entrepreneurial experience) • 2 directors should be township councilors (to maintain continuity with council) • Directors are – unpaid – elected or appointed by the members of the corporation – appointed for a maximum 4 yr. term

The EDCorp: its structure company oversight company operations Mc. Kellar Township Mc. Kellar Council Mc. Kellar Staff assists whole ownership 2 councilors suggested on the board (one is the chair of the board) Mc. Kellar EDCorp Board of Directors volunteer directors (1 is the chair of operations)

The EDCorp: its role • apply for project funding • help local firms access funding programs for expansion or start up businesses • provide ‘business savvy” consulting services – – – one-on-one business consultations business registration assistance business plan development and reviews business workshops and seminars youth entrepreneurship programs referrals and links to professionals, funding agencies and financial organizations

Sample project for the Mc. Kellar EDCorp: the Minerva Park Heritage Pedestrian Bridge • raises funds that the township can’t (e. g. lotteries, community projects, donations) • works with the township to apply for provincial and federal grants • researches design, secures plans, architectural and engineering support, permits, contractors

The EDCorp: its relationship to the township MUNICIPAL ACT Allows for the Municipality to provide Economic Development Services 108 (1) Without limiting sections 9, 10 and 11 and despite section 106, a municipality may provide for the establishment of a counselling service to small businesses operating or proposing to operate in the municipality. 2006, c. 32, Sched. A, s. 50. The EDCorp will – provide small business counselling, economic development services – make decisions without council resolutions – request start-up funding (incorporation registration and nominal operational budget) – raise its own operation funds and grants – provide annual financial statements to the council

Next Steps • Township endorsement – The Council for the Township of Mc. Kellar passes a resolution endorsing the formation of the Mc. Kellar Economic Development Corporation for the purpose of providing Economic Development Services within the Township. • Regulatory requirements – Section 6 of the municipal act requires the adoption by the municipality of a Business Case study to establish such a corporation. However, there is no direction or requirement re: the scope or content of the Business Case. – Section 8 states that “Before establishing a corporation under section 3, a municipality shall consult with the public about the proposal to establish the corporation”

Next Steps • Publicity and recruitment – The Business Economic Development and Tourism Ad Hoc Committee announces its intention to create a Mc. Kellar Economic Development Corporation and solicits persons to submit their intent to serve on the Board of Directors. • Implementation: – the Business Economic Development and Tourism Ad Hoc Committee appoints a person in charge of the Incorporation Procedures.