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: Thursday 7 July 2022

Time: 1.00 pm

Venue: Edinburgh Room, Municipal Chambers, The Octagon, Dunedin

The meeting will be live streamed on the Council’s YouTube Channel:https://youtu.be/2uAe5oEvBQg

Sandy Graham

Chief Executive Officer

Economic Development Committee

PUBLIC AGENDA

MEMBERSHIP

Chairperson	Cr Chris Staynes
Deputy Chairperson	Cr Rachel Elder	Cr Andrew Whiley
Members	Cr Sophie Barker	Cr David Benson-Pope
	Cr Christine Garey	Cr Doug Hall
	Mayor Aaron Hawkins	Cr Carmen Houlahan
	Cr Marie Laufiso	Cr Mike Lord
	Cr Jim O'Malley	Cr Jules Radich
	Cr Lee Vandervis	Cr Steve Walker

Senior Officer John Christie, Manager Enterprise Dunedin

Governance Support Officer Wendy Collard

Wendy Collard

Governance Support Officer

Telephone: 03 477 4000

Wendy.Collard@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

7 July 2022

Economic Development Committee

MINUTES

Minutes of an ordinary meeting of the Economic Development Committee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Tuesday 10 May 2022, commencing at 3:04pm.

PRESENT

Chairperson	Cr Chris Staynes
Deputy Chairperson	Cr Rachel Elder	Cr Andrew Whiley
Members	Cr Sophie Barker	Cr David Benson-Pope
	Cr Christine Garey	Mayor Aaron Hawkins
	Cr Carmen Houlahan	Cr Marie Laufiso
	Cr Mike Lord	Cr Jim O'Malley
	Cr Jules Radich	Cr Lee Vandervis
	Cr Steve Walker

IN ATTENDANCE

Robert West (General Manager Corporate and Quality), Fraser Liggett (Economic Development Manager), Louise van de Vlierd (Manager Visitor Centre) and Clare Sullivan (Manager Governance)

Governance Support Officer Lauren McDonald

1 Public Forum

1.1 Public Forum - Startup Dunedin Trust

Rachel Butler (General Manager) and Jamie Reidie (Trustee) spoke to the meeting on the details contained within the Startup Dunedin Trust (SUDT) Annual Report.

2 Apologies

Apologies were received from Crs Hall and Vandervis for absence and Cr Houlahan for lateness.

Moved (Cr Chris Staynes/Cr Steve Walker):

That the Committee:

Accepts the apologies from Cr Doug Hall and Cr Lee Vandervis for absence and Cr Houlahan for lateness

Motion carried

3 Confirmation of agenda

Moved (Cr Chris Staynes/Cr David Benson-Pope):

That the Committee:

Confirms the agenda without addition or alteration

Motion carried

4 Declarations of interest

Members were reminded of the need to stand aside from decision-making when a conflict arose between their role as an elected representative and any private or other external interest they might have.

Moved (Cr Chris Staynes/Cr Steve Walker):

That the Committee:

a) Notes the Elected Members' Interest Register

b) Confirms the proposed management plan for Elected Members' Interests.

Motion carried

5 Confirmation of Minutes

5.1 Economic Development Committee meeting - 5 April 2022

Moved (Cr Chris Staynes/Cr Rachel Elder):

That the Committee:

Confirms the minutes of the Economic Development Committee meeting held on 5 April 2022 as a correct record.

Motion carried

Part A Reports

6 Economic Development Committee Forward Work Programme
	A report from Corporate Policy provided the forward work programme for the 2021-2022 year.
	The General Manager Corporate and Quality (Robert West) and Economic Development Manager (Fraser Liggett) spoke to the report and responded to questions.
	Moved (Cr Steve Walker/Cr Mike Lord): That the Committee: Notes the Economic Development Committee forward work programme Motion carried

7 Startup Dunedin Trust Annual Report 2021
	A report from Enterprise Dunedin provided an update on the Startup Dunedin Trust (SUDT) activity for the year ending 31 December 2021.
	The Economic Development Programme Manager (Fraser Liggett) spoke to the report and responded to questions.
	Moved (Cr Chris Staynes/Cr Christine Garey): That the Committee: Notes the summary of the activity of the Startup Dunedin Trust (SUDT) for the year ending 31 December 2021. Motion carried

8 Economic Development Activity Report for the period to 1 July to 31 March 2022
	A report from Enterprise Dunedin provided an update on progress towards achieving levels of service for the Economic Development activity for the period 1 July 2021 to 31 March 2022.
	The General Manager Corporate and Quality (Robert West), Economic Development Programme Manager (Fraser Liggett) and Manager Visitor Centre (Louise van de Vlierd) spoke to the report and responded to questions. Cr Houlahan joined the meeting at 3:44 pm.
	Moved (Cr Christine Garey/Cr Rachel Elder): That the Committee: Notes the update report on the Economic Development activity for the period 1 July 2021 to 31 March 2022. Motion carried

9 Items for Consideration by the Chair
	There were no items for consideration by the Chair

The meeting concluded at 4:03 pm.

..............................................

C H A I R P E R S O N

Economic Development Committee

7 July 2022

Centre of Digital Excellence (CODE) Update Report

Department: Enterprise Dunedin

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Economic Development Committee (EDC) on milestones achieved in the development of the New Zealand Centre of Digital Excellence (CODE) in Dunedin.

2 At the request of the Ministry of Business Innovation and Employment (MBIE), Enterprise Dunedin has led the development, establishment, and early-stage implementation of CODE since 2018. Enterprise Dunedin’s substantive role with CODE is now concluding with accountabilities and management being novated to a new entity – CODE Limited.

3 This report summarises the role of Enterprise Dunedin in enabling the creation of a gaming ecosystem in Dunedin and the outcomes that have been achieved. The report also summarises Dunedin City Council’s (DCC) future role in CODE Limited through an appointed director and services which will be provided through Enterprise Dunedin.

RECOMMENDATIONS

That the Committee:

a) Notes the activities and milestones completed by Enterprise Dunedin and economic development stakeholders in developing CODE Limited

b) Notes the accountability for CODE has been novated from Dunedin City Council to the new legal CODE Limited.

BACKGROUND

4 In October 2019, Government confirmed $10m funding from the Provincial Growth Fund (PGF) to establish CODE in Dunedin.

5 The CODE business case set out activities intended to develop a $1b video games industry nationally and maximise economic and social outcomes in Dunedin over 10 years.

6 A business case was developed with the agreed following objectives:

a) lift scale (Dunedin video game studios are viable and internationally competitive) and improve the perception of the industry (illustrating the diversity and relevance of industry across the business, health and education sectors and in community and social development)

b) align talent to Industry needs (develop multiple pathways to enable a diverse and skilled workforce to be attracted to, developed and retained in Dunedin)

c) provide leadership and develop networks (establish a fit-for-purpose legal framework and structure to enable CODE to be led and managed successfully)

d) create a point of difference for Dunedin (as a hub for Serious Games where Games for Health are developed as part of the digital transformation around the Dunedin Hospital rebuild).

7 The business case and early implementation of CODE has been overseen by a Working Group, chaired by independent Director Murray Strong and the following representatives:

· Professor Richard Blaikie – Deputy Vice-Chancellor Research and Enterprise, University of Otago

· Jason Tibble – Deputy Chief Executive Learning and Teaching Services, Otago Polytechnic

· Associate Professor Katharina Ruckstuhl – Ngāi Tahu Representative

· Mike Collins – Executive Director People, Culture and Technology, Southern District Health Board/ Business South

· John Christie – Manager, Enterprise Dunedin.

DISCUSSION

8 Since 2018, Enterprise Dunedin has led CODE in collaboration with the CODE Working Group, MBIE, Kānoa and industry partners. A number of key milestones have been achieved during this period.

a) Development of a $10m business case to the PGF based on the 2017 Labour Party manifesto to establish CODE.

b) Development of Kaupapa CODE, embedding Kaupapa Māori values into CODE which includes a focus on Māori gaming companies, entrepreneurs, pathways, and talent.

c) Development of a comprehensive industry grants and capability programme to support prototypes, start-ups and larger gaming companies in Dunedin.

d) Based on world-class best practice in Sweden, development of a vocational model and tertiary curriculum with the Otago Polytechnic and the University of Otago to build employment pathways to the industry.

e) Development of pathways for Year 7 and 8 students through a series of Game Dev Clubs.

f) Development of institutional relationships with Edinburgh City Council, Edinburgh Biomedical Quarter and Bayes Institute, Future Games Sweden, JP Games Japan, and Capital Enterprise in London.

g) Development of CODE’s operating principles, constitution, shareholding structures, policies, Independent Chair and Directors appointments, legal entity, and novation agreements.

h) Reporting and compliance to Kānoa, the appointment of CODE staff, contracts for services, advisors and mentors, events and communications.

i) Progressing ‘Games for Health’ business case to test and validate the potential of a Games for Health ecosystem in Dunedin.

Impact

9 While CODE is still at an early stage of development, it remains on track to meet goals in the business case.

*10-Year Business Case Goal*	*Update YTD 30 June 2022*
The creation of 30-50 sustainable indie video game studios, each employing on average 3.5 people and generating on average $280,000 revenue per annum.	CODE funding has supported the creation of 21 new studios and 73 jobs.
The creation of 3-5 large video game studios, each employing on average 45 employees and generating on average $13.6m revenue per annum.	CODE has supported two studios (Runaway Play and Mad Carnival) through Scale Up grants.
Approximately 450 graduates with industry-relevant qualifications and skills in making video game products from the University of Otago and Otago Polytechnic.	The University of Otago has over 50 enrolments in ENGL251 (Game Writing) 20 enrolments in ENGL342 (Digital Narratives) and 26 enrolments in COSC360 (Computer Game Design) papers. The Otago Polytechnic has 47 learners enrolled in the Games Development Pathway in the Bachelor of Design and Bachelor of IT.
Access to national and global industry experts to support the creation of scalable video game studios and research innovation outputs, such as publications.	Approximately 50 national and global experts have been supported through the grants proposal process and provided mentoring support to CODE grant recipients. In addition, a CODE operations manager (with extensive networks and industry credibility) has been recruited to Dunedin from Australia.
Approximately 1,000 people (including school students and those not in education, employment, or training, newcomers, and career changers) are attracted to video game development education pathways and skills opportunities.	CODE has supported nearly 50 students through the development and implementation of pathways for Year 7 and 8 students through a series of Game Dev Clubs.
Nearly $2m worth of grants to support Dunedin video game (including games for health) start-ups and scale-up companies in Dunedin.	$1.39m grants have been provided through CODE Kick Start and Start Up funding to Dunedin gaming companies.
For each of these outcomes, the CODE governance board will aim to achieve at least 15% participation by Māori over the 10 years.	Te Rūnaka o Ōtākou and Kāti Huirapa Runaka ki Puketeraki ngā Rūnaka and CODE have worked towards the development of credible partnership and the appointment of a CODE Māori Partnership Manager to lead activities. To date 20% of Kick Start and Start Up funding has been to projects that feature Māori cultural content.

OPTIONS

10 There are no options.

NEXT STEPS

11 DCC will continue to be represented on CODE Limited through a Board Director. Enterprise Dunedin will also continue to support CODE through city marketing, sister city connections, and progressing the Games for Health Business Case. Further updates will be provided through the EDC.

Signatories

Author:	Fraser Liggett - Economic Development Programme Manager
Authoriser:	John Christie - Manager Enterprise Dunedin

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision promotes the economic well-being of communities in the present and for the future.

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	☐	☐	☒

Māori Impact Statement

CODE has sought to develop an authentic and credible partnership with Ngāi Tahu, Te Rūnanga o Ōtākou and Kāti Huirapa Rūnaka ki Puketeraki. To date this work has resulted in the development of Kaupapa CODE focused on supporting a Māori-centred ecosystem, Māori digital creatives, and Whānau.

Sustainability

The economic and social impacts are addressed within the report. As a low-weight export, the development of gaming products has a lower carbon footprint than other sectors.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

CODE received $10m funding from the Provincial Growth Fund.

Significance

This decision is considered low in terms of the Council’s Significance and Engagement Policy.

Engagement – external

The CODE Working Group has been involved in all aspects of the CODE workstreams and activities.

Engagement – internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There are no identified risks.