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TO: |
Mayor
and Members of Council |
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FROM: |
Ted Northcott, Sr. Economic
Development Officer |
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PREPARED
BY: |
same as above |
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DATE
OF MEETING: |
November 17, 2003 |
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SUBJECT: |
SARS Recovery Program Update |
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RECOMMENDATION:
That the report entitled
“SARS Recovery Program Update” be received,
And that the $90,500 expended in 2003 be the maximum amount for the SARS Recovery Program,
And if the Province of Ontario does not approve the revised application by the Markham Hotel
Consortium (which is to be submitted by the York Region Hotel Marketing Group)
by June 30, 2004, that the $30,000 is to be returned to the Town by the Markham Hotel Consortium.
PURPOSE:
To provide an update on the Town’s SARS
recovery program with a focus on the activities of community organizations that
received Council approval for financial support to help with economic recovery.
EXECUTIVE
SUMMARY:
A
total budget of $100,000 had been approved by Council for SARS recovery
initiatives. Of this, $80,500 has been approved for disbursement this year to 5
organizations, with an additional $10,000 allocated to other activities (e.g.
International Air Rally event, and airplane towed banner announcing retail opening
on specific statutory holidays). In most cases, funding was contingent upon the
organization finding matching funds from private or public sources. The
initiatives supported by the Town have contributed to a revitalization of many
aspects of the local economy, particularly in the retail and restaurant
sectors. The hotels however, suffered significant financial losses and although
some of the business has come back, they are not at their usual levels.
DISCUSSION:
A
SARS Economic Recovery Task Force (“SERTF”) was established by Council in the
Spring of 2003 “for the purpose of recommending an action programme promoting
the economic recovery of Markham businesses negatively affected by the SARS
epidemic.” The Task Force is Chaired by Regional Councillor Bill O’Donnell and
includes Deputy Mayor Scarpitti, Councillor Usman and Councillor Chiu (until
his election as an MPP, T. Wong was also an active member of the SERTF). Town
staff from Economic Development, Finance, Clerks and Corporate Communications
have also been actively engaged in the SERTF.
The
SERTF (with Council approval) developed and implemented various activities to
help bolster the economic vitality of the Markham business community. These
activities included:
- creating and flying a banner “Shop and Celebrate Markham”
- hosting an airplane rally for 60 out of province pilots, their
crews, and 4 international journalists
- attendance and participation for Council and Town staff at
Provincial SARS meetings
- regular media releases to the community on the Town’s activities
- together with the Region, introduced legislation to allow for
store openings on key Spring/Summer/Fall statutory holidays
- Markham Council appreciation to staff and volunteers at the
Markham Stouffville Hospital
The SERTF received 5 applications from various
business groups within Markham for SARS recovery assistance: The Richmond Hill
& Markham Chinese Business Association; The Federation of Chinese Canadians
in Markham; The Markham Village BIA; The Unionville BIA; and a hotel consortium
comprising 10 hotels/motels. An
overview of the amounts approved and disbursed, activities undertaken and
results of each are described below.
1)
Richmond Hill & Markham
Chinese Business Association (RHMCBA)
a) amount approved by Council: $15,000
b) amount disbursed by the Town: $15,000
c) funding from other key sources: $25,000
York Region; $50,000 Province;
plus
funds from Town of Richmond Hill
d) SARS program: Business Recovery Campaign, May 8 – June 15,
2003
An extensive promotional campaign, initially centred
on 7 Chinese Malls, was implemented to encourage residents and visitors to shop
and dine in York Region. According to the 50+ page summary report prepared by
the RHMCBA, the Victoria Day and Fathers Day events (which included a “Lucky
Draw” at Markville Mall, for 2 years free usage of a BMW Mini Cooper) combined
with their extensive promotions generated business successes. For example, The
Times Square reported a sales increase of 20%-30% on Victoria Day and the
Pacific Mall regained its regular flow of people on Saturday and Sunday.
Plaques and certificates of appreciation have been sent by the RHMCBA to the
various levels of government and economic development departments (refer to
Attachment 1) for their financial and in-kind contributions.
2) Federation of Chinese
Canadians in Markham (FCCM)
a) amount approved by Council: $12,500
b) amount disbursed by the Town: $12,500
c) funding from other key sources: $4,000 York Region;
$15,000 Province; $10,000 Markham Village merchants; $5,000 various small
businesses
d) SARS program: Taste of Asia Street
Festival, Sunday, August 3, 2003
The Taste of Asia Street Festival was a day
long festival that took place on
Kennedy Road (closed from north of Steeles to Clayton Drive). Due to the
FCCM’s extensive promotional campaign, some 20,000 people from across Markham
and the GTA were in attendance. Over 60 booths were set up selling a wide
variety of goods including clothing and ethnic foods. The selection of music
and dancing at the temporary “band shell” was a highlight for many attendees.
Due to the success of this year’s festival and the cooperation and support that
the FCCM received from Markham and other partners, the FCCM is now planning on
making it a 2-day annual event, tentatively scheduled for July 3 & 4, 2004.
(refer to Attachment 2 for details).
3) Markham Village BIA
a) amount approved by Council: $10,500
b) amount disbursed by the Town: $10,500
(pending)
c) funding from other key sources: $1,086 York Region; $1,935 Ontario
Tourism; $2,000 Markville Ford;$2,635 booth rentals
d) SARS program: Markham
Caribbean Day, and Olden Days & Antique Cars
On Sunday, July 20, the BIA held its first
Markham Caribbean Day Festival on Markham Main Street. Five Caribbean tourism
boards were sponsors and also set up booths. At its peak, the BIA estimates
that there were between 3,500 and 5,000 people in attendance who came to hear
music, sample Caribbean foods and partake in shopping on Main Street. The
feedback received by the BIA has been positive and the BIA is considering
making this an annual event.
On Sunday, September 7, the BIA hosted its
annual Olden Days & Antique Cars Festival. More than 200 cars were on
display making this years festival the biggest yet. The BIA estimates attendees
for the day at around 7,500. Their major sponsor, Markville Ford, has committed
their support already for 2004. Many local bands were also featured throughout
the day.
In the BIA’s July 2 submission to the Town,
they indicated various other initiatives that they would like to undertake
including the creation of a Main Street directory, and an ad in the “Ontario Tripper” monthly newspaper.
However, the BIA has advised the Town that they were unable to undertake these
initiatives due to budget restraints and Caribbean Day costs overruns. If the
Festival Of Lights on November 28 is successful in raising funds, they may be
in a position to undertake these two initiatives.
4) Unionville BIA
a) amount approved by Council: $12,500
b) amount disbursed by the Town : $12,500 (pending)
c) funding from other
sources: $4,000 York Region; $28,500 Cultural
Tourism
Marketing Fund (Provincial)
d) SARS program: Summer
Shopping In Unionville Program
A copy of the Unionville BIA report is attached. The Chair of the Unionville BIA has expressed his appreciation to the Town for this recovery program and has stated his willingness to make a presentation to Committee/Council, if requested.
5) Markham Hotel “Consortium” (10 hotels) together with the
Markham Board of Trade
a)
amount approved by Council: $30,000
in 2003 (and a possible $27,500 in
2004)
b) amount
disbursed by the Town: $30,000
(being held by the Markham Board
of
Trade pending matching funds)
c)
funding from other sources: $50,000
York Region; rejected by the
Ontario
Tourism Marketing Partnership for
Destination
Marketing Partnership Fund.
d)
SARS program: Tourism Recovery (pending)
In May, Regional Council approved
an allocation of $250,000 in funding to implement a SARS Emergency Marketing
and Recovery Plan. From this funding, $100,000 was allocated to implement a
marketing program to the external audience to drive overnight traffic and to
assist in rebuilding the significant loss of overnight revenues from the York
Region Accommodation sector.
In their July 4 submission to the
Town’s SERTF, the 10 hotels proposed various marketing activities (from trade
show participation to various ad campaigns) to help their businesses recover
from the estimated millions of dollars of losses due to SARS. York Region in
July allocated $50,000 (now at around $40,000 as some activities have been undertaken) to the Markham Hotel Consortium
for their proposal to the province. The proposal was declined by the Province
due primarily to a lack of cash contributions from the hotels and a requirement
that they must include other partners e.g. restaurants, attractions, shopping
malls etc. Funds from the Region and Town are not enough to satisfy the
Province’s requirements. As a result, the hotels to-date have not been able to
implement their plan.
The Region of York has advised the
Town that they are working with the York Region Hotel Marketing Group (which
includes the Markham Hotel Consortium, and hotels and tourist businesses
outside of Markham) on a proposal to re-submit to the Province. The success of
this new application is not certain. The funds disbursed by the Town are
therefore untouched and sitting in a Markham Board of Trade bank account. The
only initiative that has been completed (at no cost) has been an enhancement of
the Town’s website to highlight awareness of hotel accommodations in Markham.
Research generated by the Town’s
Finance Department regarding the Province’s “Vacancy Rebate Program” (a
methodology to apply for realty tax reductions), and shared with all the
hotels, proved unsuccessful due to stringent criteria set by the Province which
no hotel could meet (i.e., a contiguous group of rooms had to be closed for 90
days to qualify for the rebate).
FINANCIAL CONSIDERATIONS:
To date, based on all of the activities
described above, actual disbursements are $67,500 (calculated: $10,000 other
activities;$15,000 RHMCBA;$12,500 FCCM;$30,000 Hotels) with $23,000 pending to
be disbursed. Council direction is required before the end of the current budget
year as to whether:
1. the $90,500 expended in 2003 is to be the maximum amount for the SARS Recovery Program,
2. if the Province of Ontario does not approve the revised application by the Markham Hotel Consortium (which is to be submitted by the York Region Hotel Marketing Group) by June 30, 2004, that the $30,000 is to be returned to the Town by the Markham Hotel Consortium
ENVIRONMENTAL
CONSIDERATIONS:
none
ACCESSIBILITY
CONSIDERATIONS:
none
ENGAGE 21ST
CONSIDERATIONS:
None.
BUSINESS UNITS CONSULTED
AND AFFECTED:
The Town’s Treasurer has reviewed this report,
and is supportive of its
contents.
ATTACHMENTS:
3. Unionville BIA’s report
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Stephen Chait, Director of Economic
Development |
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Mary-Frances Turner,
Commissioner, Strategy, Innovation & Partnerships |
