Report to: Committee of the Whole Date of Meeting: October 10, 2006

SUBJECT: Markham Space Race

PREPARED BY: Darren Ciastko, Sr. Business Development Officer x 2655

RECOMMENDATION:

That the report titled “Markham Space Race” be received for information,

And that a Markham Space Race account 032 224 0016, be set up to receive funds from corporate sponsors, and to finance expenditures for the Markham Space Race program.

And further that the Markham Space Race account 032 224 0016, be a continuous account and that any net revenue at year-end 2006 be carried over for use in the Markham Space Race program for use in subsequent years.

EXECUTIVE SUMMARY:

The Town of Markham Economic Development Department, Colliers International, GWL Realty Advisors, FIT by Design, and the Innovation Synergy Centre in Markham collectively created and launched the first annual Markham Space Race, an innovative contest open to up-and-coming technology and export oriented companies across Ontario. Participating companies are asked to demonstrate how their business plans position them for rapid growth, and the winner of the competition will win a fully-furnished, 1,000-square-foot “Class A” GWL office suite at 60 Columbia Way for one year ($50,000 value). The competition is open to existing small high tech businesses that have a minimum of three full-time employees and been in business for at least two years with a focus on supplying products with a view to export.

Second and third-place winners will be awarded the equivalent of $25,000 of in-kind business consulting and professional services from contest sponsors. These services are designed to help accelerate the growth of the winning small technology businesses. Winners of the competition will be announced and profiled at the Markham Space Race awards dinner event at Angus Glen on November 23, 2006, for which sponsorship funds are being solicited to fund the event.

FINANCIAL CONSIDERATIONS:

The Markham Space Race program is designed to be a self-financing program funded through corporate sponsorship and revenues collected from ticket sales of the awards dinner. As a result there are no financial implications to the Town.

1. Purpose 2. Background 3. Discussion 4. Financial

5. Others (Environmental, Accessibility, Engage 21st, Affected Units) 6. Attachment(s)

Council received a power point presentation regarding the Markham Space Race program in May of 2006. The purpose of this report is to update Council on the status of the Markham Space Race program and to receive approval to create a new budget account that will enable the Town to collect funds from participating sponsor corporations, and make expenditures for activities related to the Markham Space Race program, in particular the gala awards dinner.

BACKGROUND:

In May of 2006 Economic Development staff made a presentation to Economic Development Committee outlining the concept of a new competition designed to support and help small technology companies grow in Markham by offering free office space as an incentive. The competition was originally called CompTech 1000. The competition was inspired by Jim Brown of Colliers International and collectively founded by GWL, FIT by Design, The Town of Markham, and the Innovation Synergy Centre. On June 20, 2006 the competition newly titled the “Markham Space Race”, was officially launched at the York Technology Association luncheon by Mayor Don Cousens.

A new website, www.markhamspacerace.ca was created to promote the competition, profile the founding organizations and sponsors and to make available the contest rules and applications for submission. On September 30, 2006 the competition closed and submissions will be judged by a panel of 3 judges established by the Innovation Synergy Centre.

Currently the Markham Space Race team is preparing for the awards dinner and actively marketing the competition across the Greater Toronto Area. The competition supports the corporate goals and objectives of each of the sponsoring organizations and will give a growing business a chance to thrive.

OPTIONS/ DISCUSSION:

There are currently over 900 “High-Tech” companies in Markham of which approximately 80% have less than 5 employees. This demographic represents companies that have the greatest potential for growth and are in most need of assistance and direction. The Markham Space Race was designed as an innovative way for the founding sponsors to encourage companies across Markham and the GTA to prepare a growth plan they can implement to ensure future success. Companies whose submissions don’t win will still gain valuable experience by engaging in the exercise.

Marketing, Media and Promotion

An aggressive marketing and media campaign was launched to promote the Markham Space Race, but more importantly achieve and build recognition of Markham as Canada’s High-Tech Capital and enhance the Town’s reputation as a community that is supportive of innovation and competitiveness in business. The Town, Markham Board of Trade, Innovation Synergy Centre, York Technology Association, National Research Council, Colliers International and GWL Realty Advisors are engaged in a direct marketing initiative consisting of emails, direct mail and newsletter distribution to their respective databases and contacts. In addition to the direct marketing, Gail Bergman PR was hired to coordinate a media campaign intended to build awareness of the competition, encourage companies to participate, promote the sponsors, promote the awards dinner and follow the success of the winning companies. A summary of the media exposure achieved is attached.

Sponsorship

Two levels of sponsorship have been established to cover the costs associated with the operations of the Markham Space Race program, to fund the awards dinner and to provide in-kind consulting services for the second and third place winners. In-Kind sponsors have been finalized and the following organizations have agreed to customize their service contribution to meet the needs of the winners: Wilson Vukolich LLP
Barristers and Solicitors, The Insurers Financial Group, BDO Dunwoody LLP Chartered Accountants and Advisors, Burns Hubley LLP Chartered Accountants, PiVotal Integrated HR Solutions, Q1 Capital Partners and the National Research Council Industrial Research and Assistance program.

Cash/Gold sponsors are still being recruited to help cover costs associated with the Markham Space Race program, fund the gala awards dinner, video profiles of the 3 winning companies as well as the networking reception for sponsors and applicants. It is the intention to secure eight gold sponsors at a contribution level of $5,000 each. Currently Staples Business Depot, Creechurch International Underwriters and Sands Commercial Floor Coverings have each committed to Gold sponsorship.

Gala Awards Event

A Gala awards dinner is booked for November 23, 2006 at the Angus Glen Golf Club. The purpose of the gala is to announce the winners of the Markham Space Race competition and achieve recognition for the founding organizations and sponsors. In addition, a small panel consisting of members from the Town, ISCM and Urban Metrics will report phase one of the Town’s Economic Development Competitiveness Strategy. The details of the agenda are currently being worked out however the event will be MC’d by Arlene Bynon host of the CFRB 1010 radio show “The Arlene Bynon Show” and will feature a high profile Keynote speaker to talk about innovation and competitiveness in business.

FINANCIAL TEMPLATE:

ENVIRONMENTAL CONSIDERATIONS:

ACCESSIBILITY CONSIDERATIONS:

ENGAGE 21^ST CONSIDERATIONS:

The purpose of the Markham Space Race was designed to promote the Town’s Economic Development goal to establish, promote and support Markham as the best location for diverse high-tech and other leading businesses.

BUSINESS UNITS CONSULTED AND AFFECTED:

Staffs from the Legal Department, Corporate Communications and the Finance Department have been consulted to help frame the program.

RECOMMENDED

BY: ________________________ ________________________

Stephen Chait, Director Jim Baird, Commissioner

Economic Development Development Services

ATTACHMENTS: