Title
Edmonton Global (Edmonton Metropolitan Region Economic Development Company)
Proposed Motion
That Council authorize Administration to give written notice to Edmonton Global of Parkland County’s request to terminate as an Edmonton Global (Edmonton Metropolitan Region Economic Development Company) shareholder in accordance with Article 42 of the Articles of Association.
Body
Administration Recommendation
Administration supports the recommendation.
Purpose
To discuss Parkland County’s membership with the Edmonton Global (Edmonton Metropolitan Region Economic Development Company).
Summary
In April 2017, Parkland County signed a three-year membership commitment to the Edmonton Metropolitan Region Economic Development entity, subject to 2/3 of the Capital Region municipalities participating in the membership contributions.
The role of this entity was established to promote the Edmonton Region on the global stage and promote our region’s competitiveness, growth and innovation. Initially the entity was to work with regional partners to develop regional branding, collect information for a regional database and formulate a regional strategy for business and talent attraction.
Membership costs over the last three years were:
2017 - up to $40,000
2018 - up to $50,000
2019 - $75,000
Parkland County is an entrepreneurial County, who wishes to ensure we are nimble, effective and consistent with those that wish to do business in the County. We envisioned a different Edmonton Global, one who was providing services and products we were not already and one that did not inhibit our ability to stay entrepreneurial. It appears that the current structure and work Global is taking on is not aligned to provide intrinsic value to Parkland County. Competition even internal competition is good, and Parkland County is not afraid of competing against those in the region. We will win some, and loose some.
As well the governance structure is too far removed from Parkland County and has some fundamental flaws. We have evaluated how we go to market, where our strengths are and where we need to focus and we do not believe Edmonton Global will add anything to this value stream moving forward, and in fact may be impinging on our ability to remain competitive, stay nimble and entrepreneurial. For many other shareholders that may not have the level of sophistication or the structure of Parkland County there may be value. In light of all costs born at the county it is not a cost we could justify moving forward. The Edmonton Global we envisioned is not the Edmonton Global we have in place.
According to article 42, Withdrawal of Shareholder, a shareholder may withdraw from the Company by providing written notice to the Company at least two years in advance of termination and to such termination will only be effective at the end of the Shareholders then current three year commitment to the Company. The Shareholder shall continue to make an annual contribution to the Company during each year of the Notice Period that is fixed at the rate of the current year’s Annual Contribution Fee to which the Shareholder is bound.
Strategic Plan/Policy/Legal/Staff Implications:
1. Responsible Leadership - we maintain the public's trust through transparent and fair decision-making, superior service delivery, and effective communication.
2. Strategic Economic Diversification - we support the continuation and evolution of traditional economic activities, while pursuing new opportunities for diversified and sustainable growth.
Financial Impact:
Membership costs over the last three years were:
2017 - up to $40,000
2018 - up to $50,000
2019 - $75,000
Other: n/a