1. Background and Purpose
a. Background
It is widely recognized that commercial airports contribute to the economic development of the region in which they are located. This can be done through a number of means including:
· Increased access for businesses and tourists;
· Development of airport lands for aviation and non-aviation purposes; and
· Increased employment.
Most airports serve as catalysts for economic growth by enabling their regions to benefit from the globalization of business and tourism. The high speed of travel and the safe transportation of people and goods fosters major business and employment opportunities in nearly all economic sectors.
The Ottawa Macdonald-Cartier International Airport Authority (OMCIAA) is a significant economic generator for the national capital region and is also an important contributor to Ontario’s economy. The airport links Ottawa and its surrounding communities to major Canadian and American cities and serves as an international gateway to the world by providing scheduled service to key North American and European air transportation hubs. Ottawa’s international businesses and organizations importing and exporting out of Canada are all heavily reliant on the success and growth of airport services. The ability to attract foreign investment as well as major events and conferences to Ottawa is dependent on the airport’s multiple functions and services. Similarly, domestic and international travelers looking to visit Ottawa are reliant on the availability of air service.
Beyond acting as a gateway for business and leisure travel, the OMCIAA provides for the development of airport property for aviation and non-aviation purposes, including the leasing and development of its land for retail and employment purposes. Examples of recent non-aviation developments on airport lands have included hotels, restaurants and tradeshow space. The development of these lands increases the potential of employment, facilitates travel and encourages business. Currently, the opportunity exists to increase the concentration of aviation and non-aviation related business activities on these lands together with the development of an aerospace business park to service the airport function.
As a result of the significant size and scope of OMCIAA operations, it is also one of the largest contributors to local employment. In 2010, approximately 5,000 people were directly employed at the airport and another 5,400 were indirectly employed as a result of airport operations.
The diversity of aviation and business activity at the airport and on airport lands directly enhances the airport’s role as a key economic engine within Ottawa. Approximately 4.5 million passengers use the airport each year, and in a study by LeighFisher, the economic impact of the airport was determined to be $1.1 billion annually.
The City of Ottawa, like the OMCIAA and most economically dynamic municipalities around the world, recognizes that stimulating the local economy is important to ensuring long-term prosperity. In order to maintain Ottawa’s competitive economic position in Canada and North America, the City should continue to invest in economic development programs and initiatives. With rising economic strength in China and India, the centre of gravity for world economic growth is shifting and competition for business and talent is becoming intense. As part of Ottawa’s investment in economic development, the City of Ottawa’s Economic Development Branch (EDB) developed Partnerships for Prosperity, a five-year investment strategy for economic sustainability. The three mains goals of this strategy are to:
1. Leverage Ottawa’s existing strengths as a competitive global hub for innovative, knowledge-based talent, businesses and organizations to inspire and facilitate future economic development activities.
2. Promote Ottawa globally, as a top destination in which to study, work, live and to visit.
3. Make Ottawa a global role model for holistic planning for the community's economic, social, cultural and environmental benefit.
Given this and the relationship between airports and economic development, the EDB has committed to work with the OMCIAA to develop a framework to meet common economic development goals and to improve Ottawa’s economic health. Meetings between the EDB and the OMCIAA to discuss specific actions related to economic development revealed that over and above this, the OMCIAA and the City would also like to work more collaboratively together with other City departments whose role and focus affect shared economic development activities. These areas include Transit Services and the Planning and Growth Management departments. To address and enhance the symbiotic role that both the airport and the City play in Ottawa’s economic development, the City and the OMCIAA joined together to develop this document, which details a shared vision and objectives for working together to achieve economic prosperity.
b. Purpose
In an effort to define a common vision, the document also defines the roles and identities of both groups, recognizing that the role of both the City and the OMCIAA is essential to the economic health of Ottawa. The document details not only the role of the City’s EDB but also the roles of Transit Services and the Planning and Growth Management Department as they relate to the OMCIAA and City’s vision for economic development. In addition, it also explains importance of the vision in terms of the work of the National Capital Commission (NCC). Lastly, the document explains its own role relative to other City and OMCIAA planning documents as well as details how the success of the vision will be measured.
2. Roles and Identities
a. City of Ottawa
Services provided by the City of Ottawa either affect or support the OMCIAA in a number of ways including work conducted by the Planning and Growth Management Department, Transit Services, Emergency Services and Economic Development. For the purpose of this document, the roles of only those departments directly related to economic development will be discussed. Beyond the EDB, this includes Planning and Growth Management and Transit Services.
The role of the City of Ottawa’s Economic Development Branch is to facilitate economic development and sustainable economic growth for the city. The branch delivers a number of effective programs and services in an effort to leverage Ottawa’s knowledge-based talent and existing strengths to inspire and facilitate future economic development activities. The branch works in partnership with a number of large and important stakeholders, including the OMCIAA.
The responsibility of the Economic Development Branch in achieving the shared vision that forms this document is to work collaboratively with the OMCIAA and other related City departments. The branch will take a leadership role in ensuring that the City and OMCIAA work within the context of the shared vision and will act as the liaison between the OMCIAA and City on all issues that affect economic development.
The Planning and Growth Management Department is responsible for the preparation and update of the Official Plan, Transportation Master Plan (TMP), and Infrastructure Master Plan (IMP), as well as the processing and approval of development applications, including those submitted on and adjacent to OMCIAA lands. The TMP and IMP are key documents that set out required transportation (roads, transit facilities, etc.) and servicing infrastructure (water, sewer, stormwater management) that are needed to support development in various sections of the City. These Plans include timeline horizons for the implementation of required municipal works needed to support growth.
Transit Services is responsible for providing ease of mobility to the community by offering public transportation options that meet the needs and expectations of the largest number of persons possible. The department operates four main types of services: regular transit (including O-Train), commuter (express) transit, school transit, and para transit.
The role of Planning and Growth Management and Transit Services in the context of this document is to ensure the shared vision and resulting work of the shared vision is beneficial, achievable and in line with their policies and programs.
b. Ottawa Macdonald-Cartier International Airport Authority (OMCIAA)
The primary role of the OMCIAA is to operate as a full service commercial aviation airport to leisure and business travelers and to meet the facility requirements of passenger and cargo airlines. The airport also supports a general aviation function that serves flight schools, private aviation activity, fixed base operators and businesses requiring access to the airfield system.
In the context of this shared vision, the airport’s role is to be an economic development partner, a planner of airport employment lands, and a multi-modal transportation centre that fosters and facilitates economic activity. The airport will liaise with the City’s Economic Development Branch to collaborate on economic development opportunities, the formulation of employment sector concepts and the conduct of corresponding studies.
c. The National Capital Commission (NCC)
The vision of the NCC is to create national pride and unity through Canada’s Capital Region. Given that the OMCIAA has a very unique role as a public utility of significance to not only the greater Ottawa area community but also to all Canadians, the NCC supports the shared vision for economic development as it relates to tourism in the National Capital Region. In addition to its central role in supporting the economic development of the region, the airport also forms part of a fabric of relevant capital places and destinations; the sum of which create memorable cultural experiences for both residents and visitors, alike.
3. Shared Vision and Goals, Opportunities and Risks
a. Vision Statement
Both the OMCIAA and the City’s Economic Development Branch have separate vision statements. The Economic Development Branch’s vision forms part of its Economic Strategy, Partnerships for Prosperity, while the airport’s vision forms the core of its long term strategic business planning. They are as follows:
City of Ottawa, Economic Development Branch - “To be recognized as a competitive global hub for innovative, knowledge-based talent, businesses and organizations.”
OMCIAA Corporate Vision - “To be the Transportation Hub for the National Capital Region.”
Combined as one, these visions speak to the importance that transportation has on a city’s economic development. Since neither of the visions can be achieved alone or in isolation, this document provides a vision statement for a shared commitment between the City and OMCIAA to stimulate economic growth together. The shared vision is as follows:
“To optimize economic performance and growth within Ottawa through the establishment of a multi-modal transportation centre on airport lands, that together with improved access and designated employment lands, enhances and promotes Ottawa’s profile and ability to be a competitive global hub for innovative and knowledge-based talent, businesses and organizations.”
This vision and document will guide the shared objectives as well as explain its role relative to other City and OMCIAA planning documents.
b. Shared Objectives
In order to achieve the shared vision, the following objectives have been developed. These objectives will contribute to the economic growth of Ottawa and will be achieved by the OMCIAA and the City working in partnership:
· Stimulate and target economic growth, international business and foreign investment in key industries and commerce;
· Attract major events and conventions to Ottawa; and
· Strategically develop employment lands that will complement Ottawa’s existing employment land base and enhance economic development.
c. Opportunities
In working together to support, promote and enhance economic development, the following opportunities have the potential to be realized:
· Increase the presence of small, medium and large multinational companies in Ottawa;
· Proactively identify route expansion opportunities in the identified target geographic regions for the OMCIAA;
· Augment Ottawa’s exports;
· Advocate for transportation infrastructure investments that meet current and future needs of travellers;
· Build on relationships and partnerships such as the Ottawa-Beijing relationship model and facilitate the establishment of bilateral trade agreements with other targeted cities in focused geographic areas;
· Evaluate the City’s employment sector needs and develop a comprehensive employment strategy that will include determining requirements for additional lands in proximity to the airport;
· Develop an aerospace business park;
· Enhance the effectiveness of the city’s new and existing tourism assets and organizations such as the CE Centre, the Ottawa Convention Centre, Ottawa Tourism and the Ottawa-Gatineau Hotel Association;
· Improve access to Ottawa as a place of domestic and international business; and,
· Share data between both organizations to better understand economic climate.
d. Risks and Threats
If the City and the airport do not work together though a collaborative partnership to enhance economic development, the following risks and threats may become a reality for Ottawa:
· Loss of domestic and international travel connections and ability to stimulate tourism;
· Weakened ability to compete for global services and new routes;
· Increased competition from neighbouring airports (Montreal, Toronto, Syracuse);
· Restricted ability to stimulate economic growth and develop employment opportunities;
· Vulnerability to the occurrence of an economic downturn; and
· Inability to become a globally competitive city.
4. Framework for Working Together
To achieve the vision and objectives outlined in this document, the City of Ottawa and the OMCIAA should work in partnership on issues related to economic development. The City’s Economic Development Branch will act as the municipal liaison between City departments and the OMCIAA. This document is not binding but should act as a guide to ensure that both organizations are working towards the same end goals.
Although it is recognized that the City and the OMCIAA operate under different mandates and governance structures and that as a result, there may exists certain constraints in working together, both parties are committed to achieving the shared common vision.
5. Relationship to City and OMCIAA Plans and Strategies
To solidify this partnership and shared vision, to the extent possible, the City’s Official Plan, TMP, IMP, Development Charges By-law and other related plans will acknowledge the importance of the City and the OMCIAA’s shared vision. The same is important for the OMCIAA’s Strategic Plan, Airport Master Plan, Land Use Plan and Employment Sector Strategy.
As part of the next update cycle for these aforementioned City plans, modifications will be made to them to the extent possible to incorporate new or revised policies that reflect the shared vision of how the City and the OMCIAA can work together to stimulate economic growth.
6. Measuring Success
The success of the shared vision will be determined by improved coordination and collaboration between the City and OMCIAA on economic development initiatives. The following are examples of specific measures that may be used to measure success:
· Number of major events and conventions;
· Increase in the number of small, medium and large multi-national companies;
· Increase in the number of direct flights and destinations to and from Ottawa;
· Ottawa’s exports; and
· Increase in employment levels.