OUR ECONOMY

2007-2010
P R O G R E S S R E P O R T
 LO N D O N ’ S N E X T
E CO N O M Y
While London has traditionally seen steady and stable growth in

L O N D O N its economy, the last four years have been characterized by more

Forest
pronounced highs and lows than ever before. When London City
T H E

City
Council began developing its four year strategic plan, assessment
growth was climbing, unemployment was low and stable, and the
local economy was robust. By 2009, the City was experiencing one
of the highest unemployment rates in the country, with ongoing
job losses in manufacturing, slow population growth and a dramatic
drop-off in new building and construction.

Today, the City’s economy is bouncing back, due in part to

government investment in economic stimulus projects, along with
new investments by both large international and local companies
looking to establish and expand in London.

Council has developed a comprehensive program to support

London’s local economy, increase job creation and stabilize costs
to establish more predictable investment and business conditions.

This report provides an overview of what has been done and is

planned for the future to improve London’s economy.
 13%
manufacturing

Th e Ch an gi n g Eco n o my
15%
trades Southwestern Ontario has traditionally been an
economic engine for Ontario. Our rich agricultural
lands, strength in the manufacturing sector and
London’s employment profile:

15% close proximity to the American borders have

10 th
made this region an important part of the national
health care economic landscape.

More recently, the manufacturing sector in largest city in Canada

9%
education
Southwestern Ontario has faced significant
challenges with the rise of the Canadian dollar
and the restructuring of the automotive sector
Co u n ci l ’s St rateg y
In 2007 Council identified economic prosperity as a top strategic priority
in the U.S.
with an aim to “accelerate the growth of a strong and vibrant economy,
and foster private sector investment.” Since then Council has taken many
While London shared the struggles facing
steps towards this objective:
Southwestern Ontario, we also had numerous
successes. In recent years, London has attracted
1. Achieve a stable financial position
new foreign direct investments in advanced
manufacturing, food-processing, information- 2. Promote affordable taxes
technology and other knowledge based industries 3. Invest in infrastructure
along with the growth of many existing
London businesses. 4. Maintain competitive utility rates

5. Invest in public facilities

Cities are increasingly competing in a global
6. Establish a focused strategy for the downtown
marketplace for business, talent and investment.
For London to succeed in the ‘next economy’ we 7. Build on the industrial land successes
needed a new plan of action.

423
8. Strengthen regional cooperation

4 square km in the
heart of Southwestern Ontario
F O C U S
 Best
managed
city in Ontario
Macleans Magazine, 2009

1 . Achi eve a s t a b l e
fina n c ial po s itio n.
The financial position of the City of London is important to
taxpayers and to the economy. To taxpayers, a stable financial
position means cost containment and lower tax rates. For the
$42
Property tax increase for the
economy, it means the ability to improve capital financing, average London taxpayer in 2010
borrow money at attractive rates, and make strategic investments
to stimulate economic growth. 2. Pro mote af ford ab l e t axes.
In 2009, the City of London was ranked by Macleans Magazine as
City Council strives to keep residential property tax rates
being the best managed city in Ontario. This is largely due to the
affordable and stable for Londoners, and to remain competitive
City’s solid financial position.
with other municipalities. For the past few years, Council has
managed to keep tax rate increases steady and reasonable at less
London is one of the few communities in Canada that has a
than 3% per year, providing the city the opportunity to maintain
Aaa credit rating – and we’ve held it for 33 years straight! We’ve
support for existing programs and work towards reaching its
significantly reduced our debt load by $500 per household
strategic goals.
over five years, and our reserves have increased by $200 million.
The City of London is in a strong financial position, providing a
London’s residential tax rates are lower than the urban
solid foundation on which all other initiatives – social, cultural,
average – affordable housing prices and low tax rates
environmental and economic – can be built.
assist in attracting talent to our city.

6 7

F O C U S

3 . I nve s t in in f ras tr u c t u re.
Aging municipal infrastructure is a significant
concern in many municipalities. Our aging
infrastructure requires significant and sustained
financial investment to ensure that it keeps working
for London residents and businesses.
8 9
F O C U S
$1.5 billion
Investment over 10 years in
London’s infrastructure
Infrastructure investment not only builds and repairs
infrastructure but also stimulates the economy and creates
jobs. Over the past 10 years, the City of London has invested
$1.5 billion in our infrastructure through partnerships with the
provincial and federal governments. In 2010-2011 over $100
million is being invested in London’s roads, water and sewer
pipes, parks and recreation facilities through the Infrastructure
Stimulus Funding. This funding advanced the timing of much
needed lifecycle renewal projects and created debt capacity for
future investments in the development of London’s economy.
This stimulus funding also created an estimated 1,185 jobs.
The City of London was well positioned to take advantage of
these stimulus packages through sound fiscal practices such as
managing debt levels. By maximizing government funding for
these job creation projects, the City was able to free up additional
funding over the next two to five years for other projects.
London has also benefited from additional funding provided by
the federal government through the Gas Tax Fund over the past
five years. More than $54 million was invested in projects such
as adding new bike lanes, widening Wonderland and Western
Roads, repairing the Oxford Street bridge, and repairing King
Street, Horton Street, Highbury Avenue, Base Line Road and
Wellington Road.

4 . M aintain co mp eti t i ve
utilit y rates.
The City of London owns or operates its own water, waste
water and hydro utilities. This is a key revenue source
and strategic advantage for reliable service delivery and
competitive pricing. It’s also a great revenue source for
the City. London Hydro authorized a $20 million special
dividend to the municipality in 2009.
10
F O C U S
87cents
average cost per day for household water
usage, less than one bottle of water!
Londoners are getting a great price for their utilities.
Our residential sewer charges are the lowest among
comparable municipalities in Ontario. Our water and
hydro rates are also very competitive. Once again this
provides a benefit to taxpayers who enjoy lower utility
costs and lower costs of home ownership.
London is also a leader in environmental stewardship.
In 2004, the City entered into a partnership with the two
regional water boards to develop a strategic, long-term
plan to deliver high quality water while protecting the
natural environment and conserving energy. The program,
known as “HELP Clean Water”, was so innovative that it
attracted a $100 million cost sharing investment from the
federal and provincial governments for the construction of
new facilities. This program will benefit the 500,000 people
in Southwestern Ontario who use this water supply system.
11
 Public facilities such as the Western Fair and the London
Convention Centre provide entertainment, cultural and
economic activities for our city. Public facilities generate
business activity and high-density residential development –
evident in the number of restaurants, shops, apartments and
condos that have sprung up around Covent Garden Market
and the John Labatt Centre.

These facilities help to define London’s brand, and enhance the

quality of life for all Londoners.

They also attract visitors to the city – the JLC alone attracts
over 500,000 visits per year into our downtown core! These
facilities have all contributed to London’s reputation as the
entertainment and sports capital of Southwestern Ontario.
They also are a key reason why London is chosen to host
world renowned entertainers and notable events such as the
2010 BMO Canadian Figure Skating Championships, the 2010

John
Special Olympics Canada Summer Games and the 2011 Tim
Horton’s Brier
Labatt Centre
Venue of the Year 2009 $48 million John Labatt Centre
$40 million Dearness Home
$34 million London Convention Centre
5 . I nve s t in pu b lic f a c i l i t i e s. $34 million Police Facilities
$26 million NoRth London Community Centre
Council has directed almost $300 million over the past $25 million Central Library
15 years towards important public facilities. $20 million Stronach, Nichols and Kinsmen Arenas
$17 million Western Fair
$4 million Covent Garden Market

12 13

F O C U S
 The statistics prove that London’s downtown has experienced
significant revitalization. Assessment has increased
considerably, there is a growing residential population,
heritage buildings are being renovated and restored, and
street level vacancies have declined. Since 2008, over 1,500
new residential units have been created with the value of
the building permits totaling $297 million. The assessment
growth in the downtown has increased by 20% since 2002.

Our downtown strategy supports business longevity, evident

in retail stores such as Nash Jewellers or Kingsmill’s which has
been a downtown icon in London since 1865. It also supports
new development, such as the retail, office, business,
education and recreation services in the rebranded Citi Plaza.
The City has also initiated an incentives program to support,
in collaboration with Fanshawe College, the creation of a
new downtown campus that will be a centre for arts related
programming. This exciting development will again benefit
downtown businesses and organizations, while attracting
6 . E st ab lis h a fo c u s e d st rate gy more people into the vibrant core of our city.
for th e d ow ntow n .
Council set forth a clear strategy to invest in the
downtown by providing investment incentives,
creating a Main Street program, and strengthening

37,000
residential growth.

MONTHLY VISITORS TO
COVENT GARDEN MARKET
14

F O C U S
 476,192
passengers served at the London
International Aiport in 2009

7. Buil d o n t h e
indu s tr ial lan d s ucce sse s.
London City Council identified the city’s industrial
land strategy as a critical component of our economic
success. Availability of well-priced and serviced
industrial land with easy access to our International
airport and highways is an important factor when
companies decide where to locate and invest.

Since 2001, Council has invested in the acquisition and servicing

of 670 acres of industrial land. The Forest City, Innovation and
Skyway Business Parks have attracted major investment to the
city. The City’s inventory of industrial land has also allowed
it to enter into partnerships with the University of Western
Ontario and Fanshawe College to establish a new advanced
manufacturing and green industrial park with dedicated
research facilities. These new industrial investments are also
creating significant jobs for Londoners. For example, in January
2010, Brose North America announced a $7 million investment
for one of the most advanced automated assembly technology
units in the automotive industry. In 2009, over 250 new jobs
were created with the opening of Hanwha L&C Canada and The
Original Cakerie, totaling an investment of $111 million.
The airport has also experienced exciting growth. In 2009, the
London International Airport received $11 million to establish an
International Air Freight Transshipment Centre, expected to create
up to 150 new jobs and a new cargo hub in London. Our airport
is a key economic advantage, providing businesses with cost-
effective gateways to the U.S. marketplace, duty free tax relief and
low operating costs. In addition, with an annual economic impact
of $357 million, it also significantly contributes to our economy.

16 17

F O C U S
 150 MILLION
number of people living within
a days drive of London

8 . St rengthen regional
co op erat i on.
London’s economy cannot prosper without strong
regional and provincial economic strategies. Investments
that benefit Southwestern Ontario also benefit London.

The City has accelerated its involvement with key institutional

and private sector partners to attract investment and new ideas.
This strategy has already paid dividends. In the 2009 federal
budget, a $1 billion federal investment was announced for a
new Southern Ontario Development Agency – an investment
resulting from a proposal by the City of London and our partner
municipalities in the Southwest Economic Alliance (SWEA). Our
partnerships have also led to new transportation strategies
where London is positioned as the regional hub for multi-modal
transportation and a key part of the gateway to Canada’s North
American trade corridor.

19
 Londo n’s Nex t Eco no my
Today, our economy is showing exciting signs
of growth and expansion. City Council created
London Economic Development Corporation ten
years ago, and with their support, has implemented
many initiatives to stimulate economic growth.
With Canada’s economy showing signs of recovery,
Londoners can feel confident that we are headed
in the right direction.
How do we know that our economy is improving?
Londoners are finding jobs. Less than a year ago, London
hit a peak unemployment level of 11%, one of the highest
in Canada. Already in 2010 this number has stabilized at
8.8%, one of the lowest in Ontario. Additionally, of the
approximately 8,000 manufacturing jobs lost in London
as a result of the economic downturn, over 6,500 new
manufacturing jobs have been created.
Companies are choosing London. London beat out
Singapore, Germany, Belguim and the US to attract
Lanxess, a $10 billion German company, to build a new
research and development laboratory. Since 2005, the
London Economic Development Corporation (LEDC) has
attracted nearly 40 new companies to London resulting in
more than a $360 million investment and the creation of
over 1,300 new jobs.
20
F O C U S
People are coming to London. Our city is steadily growing at
around 2% per year. By 2030, London’s population is estimated
to be near a half-million people. London is also increasingly
becoming a sports, leisure tourism and business destination,
attracting an estimated 1.6 million overnight visitors per year
and contributing over $450 million of economic benefit to
the city.
London is a great place to live. Research shows that
creative, diverse cities with a great quality of life enjoy greater
economic prosperity. London is consistently recognized as
being a great place to live, work and do business. In 2010,
Money Sense magazine ranked London as being the 12th
best city in Canada to live, out of a total of 154 cities. London
was 4th in the small cities category recognizing best quality
of life in North America by fDi Magazine. London is also one
of Canada’s smartest cities, according to Macleans magazine’s
smartest cities survey for 2010.
21

I nvest i n g i n t h e Fu t u re o f
Londo n’s Eco n o my
Using the Economic Development Fund of over $50
million set aside by London City Council in 2009, the City
is investing in some of the hottest and fastest growing
industry sectors, including digital gaming and green
technologies. This funding is now being leveraged to
obtain federal and provincial funding to further expand
each of these initiatives.
Most of these projects are public/private partnerships,
building upon the extensive relationships between local
industry, educational institutions and government. These
investments, capitalizing on talent, technology and
infrastructure, will position London to attract new business
and support the growth and development of existing
businesses in the future.
22
F O C U S
Airport/401/402 Gateway – capitalizing on new regulations
designating the London International Airport as a Duty Free Zone,
along with the new Open Skies agreement with the European
Union, this plan includes a facilities expansion for cargo. This is
a partnership between the London International Airport, City of
London and the federal government. It also includes interchange
enhancements through the 401/402 corridor at Veteran’s
Memorial Parkway and Wonderland Road with support from
the provincial government, helping to make London a preferred
destination and building the logistics hub in our region.
Wastewater Validation Technology Centre – the City of London,
Trojan Technologies, and Western are creating a leading centre
in North America for industrial water treatment technology,
commercialization, validation and testing. Located in Greenway
Park, this facility will include research and design labs as well
as teaching space. Other major water companies are already
expressing interest working in collaboration with the new
technology centre.
The City of London will invest $3.8 million in this project, with
an additional $1 million provided by Trojan. The project will
initially create 50 to 60 new jobs. The City will be applying to
both the federal and provincial governments for funding for
additional phases.
Advanced Manufacturing and Green Technology Industrial
Park - In partnership with UWO and Fanshawe, this park will
integrate research and development facilities with educational
institutions, government agencies and the private sector to create
a community of advanced industries. The first tenant will be the
new WindEEE Dome, the only facility in the world investigating
all aspects of wind energy, engineering and the environment.
23
International Composite Research Centre – A World Leading
Centre for lightweight materials, this research centre will be a
partnership with Western, the Fraunhofer Institute in Germany and
German manufacturer Dieffenbacher, attracting companies from
around the world in defence, aviation, automotive, medical device,
consumer, leisure and building products.
The City of London will invest $10 million and Western $5 million
over the next three years to establish the centre, and will seek out
an additional $20 million from senior levels of government. The
centre is expected to create 20 new jobs initially, with up to
100 possible jobs in future phases.
The centre will position London as a world leading centre in this
industry, attracting companies and resarchers to develop their
technologies.
Fanshawe College Downtown Campus – This is an exciting
expansion for Fanshawe College, creating a downtown campus
for Applied and Performance Arts in partnership with community
arts, educational institutions and the private sector. Fanshawe will
also be able to further expand a growing roster of programs where
there is already high applicant and employer demand, including
digital media.
The City will invest $10 million in this initiative, along with other
downtown retrofit incentives. The downtown campus will create
up to 75 new jobs and attract up to 1,500 students to the
downtown core.
Digital Media Centre of Excellence – London has applied for and
been shortlisted for funding through the Canadian Centres of
Excellence for Commercialization and Research (CECR) to establish
a Digital Media Centre of Excellence. This initiative would provide a
platform for game developers across Canada to converge, integrate,
licence and commercialize technologies while enhancing London’s
position as a top digital media destination.
The City of London has committed $5 million over five years and if
the funding application is successful, will create up to 100 new jobs
in the short term.
City-Wide Medical Device Strategy – London is one of the key cities
in Ontario for the medical device industry, creating an opportunity
for continued growth and development in partnership with the
LEDC, WORLDiscoveries, The University of Western Ontario, Ivey,
TechAlliance, Lawson, Robarts, the Stiller Centre, the NRC, Fanshawe
College and the private sector. This initiative will build support and
opportunity for existing companies and provide a mechanism for
new technologies and research from London institutes. It will also
position London to attract new investment and employment in the
medical device industry.
Other Investments Underway
Innovation Industrial Park, Phases II, III and IV developments –
The City of London has been investing in its industrial land strategy
for over x years, successfully attracting new companies and
investments by having serviced industrial land ready for new
development. This strategy will continue with future phases of
Innovation Park along the Veteran’s Memorial Parkway.
Food Innovation Strategy – London is one of the best locations
in Ontario for supply and food-processing capabilities with
extensive opportunities for future growth. This strategy will foster
entrepreneurial growth in the agri-food industry.
The momentum for economic development in London is strong and
will help move our economy forward through these times of change.
City Council has set out an aggressive economic action plan, but we
can’t do this alone. As a community we need to act together towards
our collective goal of economic prosperity.
25
 Notes:

26 27

F O C U S
For more information, please contact:

Anne Marie DeCicco-Best

Mayor

Jeff Fielding, Peter White

Chief Administrative Officer
City Hall
300 Dufferin Avenue
London, ON N6A 4L9
T: 519-661-2500
President & CEO
London Economic
Development Corporation
380 Wellington Street, Suite 701
London, ON N6A 5B5
Tel: 519-661-4545

www.london.ca www.ledc.com