Agenda of Economic Development Committee

Notice of Meeting:

I hereby give notice that an ordinary meeting of the Economic Development Committee will be held on:

Date: Tuesday 23 May 2017

Time: 1.00 pm

Venue: Edinburgh Room, Municipal Chambers,

The Octagon, Dunedin

Sue Bidrose

Chief Executive Officer

Economic Development Committee

PUBLIC AGENDA

MEMBERSHIP

Chairperson	Cr Chris Staynes
Deputy Chairperson	Cr Christine Garey	Cr Andrew Whiley

Members	Cr David Benson-Pope	Mayor Dave Cull
	Cr Rachel Elder	Cr Doug Hall
	Cr Aaron Hawkins	Cr Marie Laufiso
	Cr Mike Lord	Cr Damian Newell
	Cr Jim O'Malley	Cr Conrad Stedman
	Cr Lee Vandervis	Cr Kate Wilson

Senior Officer John Christie, Director Enterprise Dunedin

Governance Support Officer Jenny Lapham

Jenny Lapham

Governance Support Officer

Telephone: 03 477 4000

Jenny.Lapham@dcc.govt.nz

www.dunedin.govt.nz

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

Economic Development Committee

23 May 2017

Part A Reports

Update on the Energy Plan 1.0

Department: Community and Planning

EXECUTIVE SUMMARY

1 This report updates the Committee on activity to deliver actions identified in the city’s Energy Plan 1.0 in 2016/17.

2 The greatest progress has been made on actions with strong partner focus, including the Baseline Energy Study, work to support the uptake of electric vehicles (EVs), and activity to deliver on the objectives of Cosy Homes.

RECOMMENDATIONS

That the Committee:

a) Notes the update on the Energy Plan 1.0.

BACKGROUND

3 The Energy Plan 1.0 (the Plan) is a citywide action plan under the Economic Development Strategy, and seeks to support outcomes across the Council’s strategic framework.

4 The Plan relies on partners to assist in the delivery of actions. The key partners are the members of the Grow Dunedin Partnership, which includes the Dunedin City Council (DCC) and the two local runaka, the Otago Chamber of Commerce (the Chamber) and the Otago Southland Employers Association, and the University of Otago and the Otago Polytechnic.

5 In developing the Plan, priority was given to actions which had partner support and would contribute to several widely supported goals identified in the Plan:

· Take advantage of economic opportunities in a changing energy context;

· Save costs and enhance quality of life resulting from energy efficiency; improvements

· Boost the city’s energy security and ability to adapt to change; and

· Reduce Dunedin’s climate change and environmental effects.

6 The Plan is a ‘living’ document and currently has several actions underway:

· Energy Leaders (which includes delivering the Dunedin Electric Vehicle and Baseline Energy actions);

· Cosy Homes;

· Night Sky City;

· Biomass;

· Food Resilience; and

· Energy Fast Track.

7 Funding to act as a catalyst to delivery was allocated through the 2016/17 Annual Plan, with $100,000 in each of 2016/17 and 2017/18 provided.

DISCUSSION

8 Activity to deliver on Plan actions began whilst the Plan was still in development. A finalised Plan has been published on the DCC website and printed.

DCC and partner delivery of actions to date

9 Delivery to date includes:

· Dunedin EV – A partnership was established between the DCC and the Chamber to support the uptake of electric vehicles (EVs) by coordinating, encouraging or directly undertaking the provision of EV charging infrastructure, and supporting Energy Leaders to incorporate EVs in their fleets.

· Night Sky City – A Dark Skies Advisory Panel was established and provided with staff support. The Panel has provided: recommendations to DCC staff for consideration as the LED street lighting asset renewal is progressed; feedback on a number of projects including to Otago Hockey Association and Otago Cricket Association; and, their recommendations to the DCC on its outdoor lighting.

· Baseline Energy – The second year study has now been completed by the University of Otago with DCC funding support. This complements the DCC’s work to achieve compliance with the requirements of the city’s Compact of Mayors participation.

· Energy Fast Track – The development of a local electric vehicle community ride share scheme bid to Energy Efficiency and Conservation Authority (EECA) was supported. This was unfortunately not successful in the first EECA EV funding round, but may be improved and resubmitted in subsequent rounds.

DCC as an Energy Plan partner

10 The DCC has undertaken some work of its own as a partner in the Energy Plan, such as the Compact of Mayors participation, which now needs to involve partners to ensure effective citywide delivery. As another example, the DCC’s Water and Waste group commissioned a mapping study of the potential heating resource available through the city’s wastewater network, which can feasibly be extracted using heat exchangers at various points in the city. This work will be shared with Energy Leaders, with the intention of encouraging a partner to undertake a pilot project.

Flexibility in delivering the Plan and DCC contributions to partner actions planned to June 2017

11 A range of partners have also identified independent actions for which relatively modest DCC financial support would catalyse Plan actions, without relying on significant DCC staff involvement. The resignation of an Energy Plan coordinator in November 2016 created an option to divert staff budget to direct financial support for partner initiated actions that has attracted strong interest and support from partners.

12 The following partner actions have, or may, attract DCC financial support:

· Inaugural Dunedin Energy Leaders event – The Chamber is managing an event on the DCC’s behalf which will see the signing of the ‘Energy Leaders Accord’ and will showcase Dunedin as a city rapidly converting its vehicle population to EVs.

· Cosy Homes – The Cosy Homes Trust is considering marketing opportunities to maximise the rate at which effective insulation is installed in Dunedin’s housing. For example, evidence suggests landlords are delaying installations until new mandatory requirements take effect in July 2019. However some landlords may be unaware that EECA subsidies for this purpose will terminate in June 2018. Greater investment in awareness is likely to benefit both landlords (by accessing subsidies) and tenants (whose properties will be insulated sooner than they otherwise would).

· Biomass – The Otago Mayoral Forum has resolved to support a Biomass Energy Association of New Zealand proposal under discussion with, to expand the EECA’s $1.5M Wood Energy South project (currently limited to Southland and administered by Venture Southland), to include Otago and South Canterbury. The Southland project has been successful and, following discussion, the DCC will support the Otago Chamber of Commerce to potentially become the administrator of Otago-wide funding.

· Energy Fast-Track – The Blueskin Resilient Communities Trust has proposed a national first ‘Smart Grid Marketplace’ trial involving the interconnection of distributed renewable generation, smart appliances, battery storage and electrified transport. The first phase will be a scoping study, necessary to attract or confirm the participation of a range of local and national business partners.

13 A range of other potential direct DCC or partnership investments are being evaluated.

OPTIONS

14 There are no options for this update report.

NEXT STEPS

15 Delivery on the Energy Plan 1.0 is well established and will continue until the end of June 2017. The Executive Leadership Team will in the meantime review whether direct responsibility for the Plan, which is an action under the Economic Development Strategy, would more appropriately sit within Enterprise Dunedin.

Signatories

Author:

Bill Frewen - Senior Policy Analyst

Authoriser:

Maria Ioannou - Corporate Policy Manager

Nicola Pinfold - Group Manager Community and Planning

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☒	☐	☐
Economic Development Strategy	☒	☐	☐
Environment Strategy	☒	☐	☐
Arts and Culture Strategy	☒	☐	☐
3 Waters Strategy	☒	☐	☐
Spatial Plan	☒	☐	☐
Integrated Transport Strategy	☒	☐	☐
Parks and Recreation Strategy	☒	☐	☐
Other strategic projects/policies/plans	☒	☐	☐

The Energy Plan 1.0 (the Plan) is a citywide action plan under the Economic Development Strategy, and seeks to support outcomes across the Council’s strategic framework.

Māori Impact Statement

The Plan has positive implications for tangata whenua. For example, the Night Sky City action supports Puaka Matariki, and the two local runaka have been invited to participate in the Energy Leaders Accord.

Sustainability

The Plan’s four goals have positive implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The Plan supports aspects of the LTP and Infrastructure Strategy for example, the Night Sky City action supports the conversion of street lights to LED.

Financial considerations

The Plan’s actions are currently budgeted. As discussed in paragraph 11, unspent staff funding is intended to be redirected to partner funding.

Significance

As an update report, the significance of this report is considered to be low.

Engagement – external

The Plan was subject to significant consultation in its development phase. The Plan continues to involve regular consultation, particularly amongst Grow Dunedin Partners. This includes the Otago Chamber of Commerce’s Energy Committee, established for the specific purpose of informing and guiding Plan actions.

Engagement - internal

Corporate Policy and Enterprise Dunedin continue to work collaboratively on the Plan, particularly as direct responsibility for the Plan transitions to Enterprise Dunedin.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no direct implications for Community Boards.

Economic Development Committee

23 May 2017

Dunedin to Host TRENZ 2018

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 This report provides an overview on the successful application to host TRENZ in May 2018.

2 This report also provides an overview of TRENZ (Tourism Rendezvous New Zealand) – the most significant international business-to-business travel and trade event on the New Zealand tourism industry calendar.

RECOMMENDATIONS

That the Committee:

a) Notes the successful application to host TRENZ in Dunedin in May 2018 and its importance for the city and greater region.

BACKGROUND

3 Tourism in New Zealand is a $30 billion industry, which contributes in excess of $690m to Dunedin’s economy annually (Dec 2016, MBIE Tourism Dashboard).

4 Hosting over 350 international travel buyers every year, TRENZ is the largest national business to business travel and trade exhibition event where sellers can connect, interact and do business with a focused target audience of key buyers and international media from 29 different countries. This show is a four day event of business to business appointments and networking opportunities to ensure visitor attractions and services are included on their future itineraries.

5 Attendees at TRENZ include international tourism and education buyers, international and New Zealand media, who meet with up to 400 of the country’s industry leaders, top visitor attractions and services. Key central government senior officials and distinguished guests including the Prime Minister, Minister for Tourism, Cabinet Ministers and MP’s; tourism and travel sector CEO's and industry influencers attend the VIP day along with local government representatives including Mayors and CEOs from regions around the country. All 30 Regional Tourism Organisations (RTOs) are represented at TRENZ.

6 On average, every TRENZ Buyer sends 4000 visitors to New Zealand annually; this equates to 1.5 million visitors per year.

7 TRENZ represents approximately 5000 room nights to the hosting city at an estimated value of over $2.4m in economic impact to the local economy during the off-peak season – May 2018.

8 Furthermore the economic impact study conducted for TRENZ 2015 in Rotorua indicated the city saw $7.6million in additional forward booking revenues from travel trade over and above business that had historically been placed with the destination.

9 This year Enterprise Dunedin attended TRENZ in Auckland exhibiting alongside key tourism attractions and activities from our local industry. This is the largest contingent Dunedin has sent and highlights the importance placed on this trade exhibition in attracting international visitors. Enterprise Dunedin industry partners at TRENZ 2017 included Larnach Castle, Cadbury World, Dunedin Railways, Monarch Wildlife Cruises, Royal Albatross Centre, Natures Wonders, Emerson’s and Speight’s Heritage Tours, Toitu and Dunedin Chinese Gardens.

DISCUSSION

10 TRENZ considered up to six destinations around NZ in developing a five year strategy for hosting the event. There was a strong desire to bring TRENZ back to the South Island in line with regional dispersal objectives of the Tourism 2025 strategy.

11 This will be the first time this event has been held outside of Auckland, Rotorua and Queenstown. It has not been to the South Island for five years.

12 Hosting TRENZ in 2018 allows Dunedin a window of opportunity to showcase the destination to global travel buyers before increased competition from South Island destinations with the reopening of the Christchurch Convention Centre in 2020.

13 With up to 1200 delegates over four days this will be one of the largest business events the city has hosted in the last decade and strengthens Dunedin’s messaging as a premier business events destination.

14 The TRENZ ‘Host City’ fee for this event is $150,000 plus estimated city activation costs of $50,000. Enterprise Dunedin will utilise funds from existing budgets allocated to international travel trade promotion and has sought joint venture investment and in kind contribution from key industry partners including:

· Tourism Industry Aotearoa (TIA)

· Tourism Waitaki

· Venture Southland

· Dunedin Airport

· Hotel Partners including Scenic Hotels Group and Distinction Hotels

· The Edgar Centre

· Dunedin Venues and Restaurant Associates

15 Enterprise Dunedin has worked with event owners Tourism Industry Aotearoa (TIA) to secure event sponsorship from accommodation (Scenic Hotel Group and Distinction Hotels) and other key services.

16 The Edgar Centre & MoreFM Arena will host the main exhibition with Dunedin Venues and Larnach Castle providing function venues across the exhibition week.

17 Various Regional Tourism Organisations, sponsors and exhibitors will host buyers and media staying in the city over various nights throughout the exhibition at local bars, restaurants and eateries which will boost the hospitality sector during this time.

18 The event provides opportunity for strategic alignment across multiple themes within the Council's city wide strategies, with a focus on:

a. Economic Development Strategy themes:

i. A compelling destination

ii. Linkages beyond our borders

19 This events also provides flow on tactical benefits primarily to the tourism, hospitality and education sectors.

BENEFITS

20 There are a number of benefits associated with hosting TRENZ 2018 in Dunedin. These include:

· An opportunity to strengthen connections with surrounding regions including Venture Southland and Tourism Waitaki who are Dunedin’s International Marketing Alliance (IMA) partners, and with Tourism Clutha Tourism Central Otago.

· An opportunity to showcase Dunedin on a global stage with the hosting of 350+ international tourism buyers and over 30 international hosted media.

· Dunedin showcasing its offering to key influencers such as ministers, local government, VIP’s, Tourism New Zealand and Air New Zealand.

· An opportunity to increase brand and destination awareness, product package and itinerary development and forward bookings supporting future tourism growth as travel managers, wholesalers, and agents experience our product offering first-hand.

· The event bringing an estimated $2.4m to the local economy; which provides wide reaching revenue opportunities in an off-peak period for various venues, accommodation providers, suppliers and the tourism and hospitality sectors.

· Enterprise Dunedin having opportunities to work with TIA to send targeted invitations to international education agents and buyers from Dunedin and New Zealand’s key offshore markets.

· Global media coverage of the city and its strong tourism and education offerings.

· Hosting up to 1200 delegates over four days, will be one of the largest business events the city has hosted in the last decade and strengthens Dunedin’s messaging as a premier business events destination.

NEXT STEPS

21 Enterprise Dunedin will continue to engage with key internal and external stakeholders to ensure that all aspects of funding and event delivery are in place.

Signatories

Author:

Bree Jones - Business Tourism Events Advisor

Suz Jenkins - Finance and Office Manager

Authoriser:

Ryan Craig - Destination Dunedin Manager

John Christie - Director Enterprise Dunedin

Attachments

	Title	Page
a	TRENZ 2018 Dunedin	27

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This activity relates to providing a public service and it is considered good-quality and
cost-effective by growing the Dunedin economy by continuing to promote the city as a compelling destination.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	☒
Economic Development Strategy	☒	☐	☐
Environment Strategy	☐	☐	☒
Arts and Culture Strategy	☐	☐	☒
3 Waters Strategy	☐	☐	☒
Spatial Plan	☐	☐	☒
Integrated Transport Strategy	☐	☐	☒
Parks and Recreation Strategy	☐	☐	☒
Other strategic projects/policies/plans	☐	☐	☒

The event provides opportunity for strategic alignment across multiple themes within the Economic Development Strategy themes of Compelling Destination and Linkages Beyond our Borders

Māori Impact Statement

Kai Tahu are one of the six partners in the Economic Development Strategy. Enterprise Dunedin will liase with local iwi around relevant opportunities for involvement in welcoming and hosting international TRENZ guests and VIP’s.

Sustainability

This event contributes to the long-term economic benefits of the city by increasing the visitor industry’s GDP.

A strong potential increase in visitor numbers may have impact on the city’s eco-tourism operators and environment.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

Enterprise Dunedin will utilise funds from existing budgets allocated to international travel trade promotion and has sought joint venture investment and in kind contribution from key industry partners as outlined in the report to cover the Host City Fee of $150,000 and City Activation costs (estimated) of $50,000.

Enterprise Dunedin will look to seek further investment now the announcement has been made from the wider industry sector including Dunedin Host.

Significance

This is considered low significance with direct short and long term benefits to Dunedin’s GDP.

Engagement – external

Enterprise Dunedin has engaged with key external stakeholders this event as outlined in the report.

Engagement - internal

Enterprise Dunedin has engaged with relevant DCC departments including Events and Community Development to deliver strong ‘city activation’.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There is no conflict of interest.

Community Boards

Enterprise Dunedin will engage with relevant Community Boards around potential opportunities.

	Title	Page
a	Elected Members' Register of Interest	7