Item - 2016.EX16.15

The Executive Committee recommends that:

1.   City Council approve the City of Toronto's participation in Toronto Global for an initial three year period, ending March 31, 2019 subject to the negotiation  and execution of a three year funding agreement with Toronto Global and the Municipalities of Brampton, Mississauga and Caledon; the Regions of Durham, York and Halton, (the "Funding Agreement") in a form satisfactory to the City Manager, the City Solicitor and the Deputy City Manager and Chief Financial Officer and further subject to the following:

a.  the City's annual contribution amount for each year being $890,412 with adjustments in the first year for transition aspects described in the report (June 13, 2016) from the Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture, such adjustments and written undertaking to be agreed by the Board of Directors of Invest Toronto, the City Manager, the City Solicitor and the Deputy City Manager and Chief Financial Officer;
 

b.  the Province of Ontario and the Government of Canada committing to enter into funding agreements with Toronto Global in the amount of $2.5 million per year for at least three years;
 

c.  the Funding Agreement is to include a detailed business plan to the satisfaction of the General Manager, Economic Development and Culture with vision, mission, governance, organization structure, services, sales strategies, marketing and branding directions, specific performance metrics detailing the targeted deliverables and co-ordination protocols.

d. that the Funding Agreement and/or by-laws of Toronto Global, as appropriate and to the satisfaction of the City Manager and the City Solicitor, require: 

1.  public meetings of the Board of Directors and its committees;

2.  public annual reporting on key performance indicators and the expenditures of directors, officers and other senior staff related to business travel, conferences and training, hospitality and protocol; and

3.  a right of access to information in accordance with the principles outlined in section 1 of the Municipal Freedom of Information and Protection of Privacy Act.

2.  City Council direct that the business and affairs of Invest Toronto be wound up after an orderly transition to Toronto Global and request that the Board of Directors of Invest Toronto, following such consultation with City staff as necessary:

a.  report to the shareholder on the full details of the transition process; and

b.  submit for shareholder approval a proposal for the winding up of the business and affairs and distribution of the assets of the corporation.

3.  City Council direct Toronto Port Lands Company (TPLC) to continue to provide grants to Invest Toronto at the rate of $2.7 million per annum until Invest Toronto ceases operations and to pay any portion of this amount not required by Invest Toronto in 2016 to the City for the purposes of funding the City's first year obligation to Toronto Global. City Council further direct the Deputy City Manager and Chief Financial Officer to determine through the 2017 Budget process the appropriate source of funding for subsequent years.

4.  City Council authorize the General Manager, Economic Development and Culture to negotiate and execute the Funding Agreement with Toronto Global in accordance with the above recommendations.

Since the last update report considered by City Council at its September 30, 2015 meeting, significant progress has been made towards transitioning from the interim non-profit "Newco" to a new, permanent, GTA Regional Foreign Direct Investment (FDI) attraction agency to be named "Toronto Global".  This report provides a high level overview of activities to date and recommends the following:

That the City of Toronto become a funding party of Toronto Global, together with the Municipalities of Brampton, Mississauga and Caledon; the Regions of Durham, York and Halton; the Provincial and Federal Governments; and that the General Manager of Economic Development and Culture be authorized to negotiate and sign a Funding Agreement subject to approval by the, City Manager, City Solicitor and the Deputy City Manager and Chief Financial Officer consistent with terms set out in this Report.

That Invest Toronto be closed after an orderly transition to Toronto Global and Invest Toronto's Board be requested to report to the shareholder on the full detail of the transition process and to work with the General Manager of Economic Development and Culture to negotiate a financial resolution with Toronto Global of all the transition matters described in this Report.

Invest Toronto's Board of Directors be requested, following such consultation with City staff as necessary, to submit for shareholder approval a proposal for the winding up of the business and affairs, distribution of the assets and dissolution of  Invest Toronto.

That Toronto Port Lands Company (TPLC) be directed to continue to provide a grant to Invest Toronto at the current rate (annual amount of $2.7 million) until Invest Toronto stops operating as an FDI agency at which time TPLC pay any portion of the budgeted Grant not required by Invest Toronto in 2016 to the City for the purposes of funding the City's first year obligation to Toronto Global. Thereafter, the funding source for Toronto Global is to be determined through the 2017 budget process.
 

Efforts to establish Toronto Global have involved the Cities of Toronto, Mississauga, Brampton and Caledon; the Regions of Halton, York and Durham; the Province of Ontario and the Government of Canada. The Province provided $730,000 in seed funding for start-up costs and to help build consensus on Toronto Global's strategic priorities and operational model. The interim CEO has convened and chaired regular meetings of a working group comprised of Economic Development Officers (EDO) from the funding municipalities to advance these activities. The Province has committed $2.5 million per year for three years.  The Federal government is currently seriously considering a funding commitment of $2.5 million per year for three years.

Based on past experience and background research undertaken in the lead-up to Toronto Global, it is anticipated that the City will realize an increased number of Foreign Direct Investment leads arising from a more resourced and better co-ordinated regional Foreign Direct Investment attraction agency.