RFP No: 1617‐02‐NAEDP‐NIC (Nelson Innovation Centre Feasibility Study) 1

Request for Proposal “Nelson Innovation Centre Feasibility Study”  

RFP No: 1617‐02‐NAEDP‐NIC Issue Date: August 2, 2016 

  Closing Date for Submission: Proposals will be accepted until August 19th 5:00 p.m. Couriered or emailed submissions are acceptable.   The submissions should be marked ‘RFP No: 1617‐02‐NAEDP‐NIC (Nelson Innovation Centre Feasibility Study)’, and sent to the Advertised Contact:    Organization Advertised Contact:   Name: Lisa Cannady Address: 201‐514 Vernon St. Nelson, BC V1L 4E7 Tel:  250 352‐1933    e‐mail:  lcannady@futures.bc.ca  Any questions regarding the scope of work or other technical specifications should be directed to:   Organization Project Director:  Name: Rose Hoeher Address: Box 119 Rossland, BC V0G 1Y0 Tel:  250 354‐7894     e‐mail:  coaching@kast.com 

Nelson'Innova+on'Centre'

Feasibility'Study'and'Business'Case''Summary'

October'7,'2016'

Project'Objec+ve'

•  In'September'2016,'ATW'was'engaged'by'the'Nelson'and'Area'Economic'Development'Partnership'to'conduct'a'feasibility'study'and'develop'a'business'case'for'the'Nelson'Innova+on'Centre'(NIC)'concept.'

''•  The'NIC'concept'is'an'innova+on'hub'with'the'purpose'of:'

–  Strengthening'the'community’s'posi+on'as'a'regional'leader'of'digital'innova+on'

–  Improving'Nelson’s'ability'to'create'technology'and'support'knowledge'workers'through'educa+on'and'training'

–  Driving'success'for'technology'businesses'including'startRups;'and'–  Retaining'and'aUrac+ng'job'crea+ng'technology'companies.'''

•  NIC'entails'three'project'elements:''–  A'business'incuba+on/innova+on'for'ICT'and'technology'businesses'–  A'maker'space'where'people'and'enterprises'interested'in'film,'technology,'

science'and'digital'art'can'collaborate'using'shared'tools'and'equipment;'–  Residen+al'space'for'tech'and'knowledge'workers'

'

Project'Methodology'

•  Primary'Research'A'total'of'16'oneRonRone'confiden+al'interviews'with'poten+al'stakeholders'took'place'September'2'–'26,'2016'to'understand'the'target'market.'''–  Most'of'the'30'minute'to'one'hour'stakeholder'interviews'were'

conducted'in'person.''''

•  Secondary'Research'We'conducted'a'comprehensive'market,'industry'and'socioReconomic'review'of'Nelson'and'surrounding'area.''We'also'reviewed'selected'incubators'inside'and'outside'BC.''Sources'included'Sta+s+cs'Canada'custom'data,'industry'and'academic,'government'and'private'company'material'and'discussions'with'subject'maUer'experts.'Selected'documents'associated'with'NIC'were'also'reviewed.'''

•  The'combined'results'were'used'to'inform'the'feasibility'study'and'business'case.'''

What'we'heard'from'Stakeholders'

“Nelson(wants(to(be(an(“Intelligent”(community.((The(innova9on(centre(could(

be(the(missing(piece.”(' ' ' ' ' ' ' ' ' ' ' ' 'Interview'#13(

NIC….(“….galvanizes(the(community(on(their(collec9ve(future.(The(vision:((

there(is(work(for(them(and(there(is(work(for(them(year(round.”(

(

“There(is(poten9al(to(enhance(and(develop(an(innova9on(hub(for(technology(

minded(individuals(and(businesses”(

( ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' 'Interview'#2(

“The(ques9on(of(cri9cal(mass(comes(down(to(what(value(proposi9on(you(are(

looking(to(deliver(to(clients(in(the(area(that(could(use(the(service.”(((' ' ' ' ' ' ' ' ' ' ' ' 'Interview'#16'

'

“Think(big(–(20,(40,(60((years(out….from(youth(to(the(elderly(and(all(

genera9ons”(' ' ' ' ' ' ' ' ' ' ' ' 'Interview'#8'

Nelson’s'Assets'

Entrepreneurial'Culture'

Educated'and'Crea7ve'Workforce'

Business'and'Industry'Base'

Start>up'Leader'

Nelson'has'a'highly'entrepreneurial'culture'as'evidenced'by'Nelson'Tech'Club,'Tech'MeetRups'Club,''rise'in'number'of'coRwork'spaces,'and'local'mentoring'support'to'small'business/entrepreneurs.''Nelson'has'over'1500'business'counts'with'20'employees'or'less.'Over'1,100'businesses'have'no'employees*'''

•  'More'than'one'third'of'people'over'15'years'of'age'in'Nelson'have'university'degrees.'''

•  20%'of'the'degree'holders'in'Nelson'have'backgrounds'in'engineering'and'technology.''A'further'6%'of''degree'holders'visual'arts'backgrounds.'

Forestry'and'Mining'are'key'industry'clusters'surrounding'Nelson.''Secondary'markets'(light'manufacturing,'technology,'engineering)'support'these'industries.''Nelson'is'a'service'city.''The'second'largest'sector'acer'real'estate'is'professional'services.'''''

Nelson'has'created'331'new'businesses'since'2011.''Startups'per'popula+on'of'10,000''increased'to'73'in'2015,'is'approaching'the'BC'average'of'81.'

*businesses'without'employee'payroll'include'business'owners,'entrepreneurs,'contractors'and'family'members.'

Nelson'has'a'strong'emerging'innova+on'ecosystem'

Broad'Community'Support'

Physical'Infrastructure'

Resources'and'Programs'

Government'support'

There'is'broad'community'support'for'NIC.'Up'to'30'entrepreneurs,'companies'and'organiza+ons'have'interest'in'partnering'with'or'suppor+ng'NIC.'''

Broadband'helps'offset'challenges'of'being'a'remote'rural'community.'''Physical'space'op+ons'for'NIC''in'or'near'downtown'Nelson'are'currently'available'for'lease'or'purchase.'MIDAS'labs'–'maker'space'

Community'Futures,'KAST,'and'NRCRIRAP'programs'support'business'growth'and'commercializa+on'of'ideas.''Selkirk'College'Applied'Research'and'Innova+on'program'and'Department'of'Digital'Arts'provide'educa+on,'research,'equipment,'tools'and'students.'

Innova+on'is'a'strategic'priority'on'the'federal,'provincial'and'municipal'governments.''The'City'of'Nelson'aspires'to'become'an'“intelligent”'community.''NIC'could'be'a'key'contributor.''''

•  NIC'could'benefit'from'a'private'sector'champion.'''•  There'is'opportunity'for'sector'focus'with'deep'value'added'programs'to'help'

technology'companies'grow.'''

Unmet'Needs'•  Entrepreneurs,'companies'and'program'providers'desire'a'physical'space'

where'there'is'opportunity'for'networking,'socializing,'programs'and'shared'ideas.''Needs'include:''–  Enhancing'technology'workers’'produc+vity'through'collabora+on,'

shared'ideas,'and'innova+on'“The(industry(operates(in(silos.((They(need(a("bug"(to(meet”((

–  Assis+ng'company'growth'through'mentoring,'advisory,'incuba+on'and'accelera+on'services'

“We(need(a(pipeline(to(draw(talent”((

–  Technology'and'digital'arts'companies'desire'a'physical'space'with'specialized'programs'to'commercialize'ideas'and'become'viable'en++es'

–  Addressing'technology'talent'shortage:''access,'retain'and'sustain'growth.'Housing'is'a'longRterm'aspira+on.'

“Companies(are(growing(and(have(no(place(to(source(workers,(aLract(

workers(and(put(them(to(work.”((

Market'Opportunity'

Nelson’s'unique'combina7on'of'assets'and'cri7cal'mass'could'support'an'Innova7on'Centre.'''NIC'could'impact'up'to'1200'entrepreneurs'and'businesses*'in'Nelson,'including'up'to'300'in'the'technology**'and'digital'arts,'and'over'200'in'the'maker'and'and'ar7s7c'sectors.'•  NIC'could'contribute'to'economic'growth'through'diversifica+on'and'support'

of'small'businesses'and'entrepreneurs.'''•  There'are'opportuni+es'to'boost'Nelson’s'technology'and'digital'arts'by'

fostering'innova+on'through'deeper'targeted'programs'and'a'physical'space.'•  A'rigorous'program'targeted'at'20'to'30'technology'companies'could'help'

grow'to'up'to'10%'of'the'technology'businesses'in'Nelson.'•  Future'opportuni+es'include'scalingRup'NIC'to'serve'a'broader'Nelson'Area'

Market'of'6400'entrepreneurs'and'small'businesses,'including'400'technology'entrepreneurs.''

'*based'on'Business'Loca+on'Counts'as'of'June'2016,'Source:'Sta+s+cs'Canada'custom'data'''**Technology'companies'include'those'classified'as'socware'and'informa+on'and'communica+ons'technologies;'wireless'technologies;'bioRtech,'life'sciences'and'health'innova+on;'clean/green'technologies;'and'gaming'and'digital'anima+on'

Recommenda+ons'

“Plan(it(and(test(it(out(on(a(small(scale.((Prototype(un9l(you(are(clear.”((

'•  Establish'an'innova7on'centre'targeted'at'entrepreneurs,'with'core'

programs'focused'on'technology*'companies.''''

–  Start'with'a'threeRyear'proofRofRconcept'pilot'project'focused'on'the'technology'sector'with'flexibility'to'scale'up.'''

–  Building'could'be'rented,'with'threeRyear'anchor'tenant'commitments'and'coRwork'space'fees'comprising'75'percent'of'the'revenue'stream'during'the'pilot'phase.'''

–  Other'revenue'streams'could'include'corporate'sponsorships,'and'program'fees.'

*Technology'companies'include'those'classified'as'socware'and'informa+on'and'communica+ons'technologies;'wireless'technologies;'bioRtech,'life'sciences'and'health'innova+on;'clean/green'technologies;'and'gaming'and'digital'anima+on.'

Recommenda+ons'•  Pursue'advancement'of'maker'space'by:'

–  BeUer'understanding'maker'needs'that'could'not'be'met'by'exis+ng'programs'and'equipment'at'Midas'and'Selkirk'College.''

–  Exploring'strategic'alliances'with'exis+ng'maker'spaces'and'equipment'at'Midas'in'Trail'and'Selkirk'College'Campus'in'Nelson'and'private'enterprise.''

–  The'Maker'Space'could'be'physically'separated'from,'but'linked'to'NIC.'

•  The'film'sector'could'explore'strategic'alliances'with'Nelson'Civic'Theatre'and'Selkirk'College.''The'filmmaker'space'could'be'physically'separated'from,'but'linked'with'NIC.'''

•  Physical'residences'could'be'added'in'the'long'term,'as'the'technology'worker'community'grows.''

•  The'configura+on'of'NIC'(programs'and'space)'will'con+nue'be'shaped'by'clients,'partners,'anchor'tenants'and'community'needs.'

Next'Steps'•  Clarify'lead'organiza+on/partners'to'establish'NIC''

–  Confirm'vision,'mission'statement'and'objec+ves'

•  Establish'an'advisory'board/board'of'directors'–  May'include'local'entrepreneurs,'graduates'from'exis+ng'programs,'

technology'businesses,'and'public'sector'and'program'partners'with'a'long'term'commitment'to'developing'NIC'

•  Iden+fy'anchor'tenants'

•  Iden+fy'poten+al'clients'from'technology'sector'and'understand'their'unmet'needs.'–  Growth'aspira+ons,'commercializa+on'of'ideas,'space'and'program'

requirements.'''

•  Hire'a'project'director'to'oversee'the'establishment'of'NIC.'•  Confirm'program'partners'

•  Iden+fy'specific'space'and'determine'configura+on'

•  Develop'business'plan'and'fiveRyear'financial'feasibility'assessment.''''''

'

'

'

Appendix:''What'Could'Nelson'Innova+on'Centre'Look'Like?'

RFP No: 1617‐02‐NAEDP‐NIC (Nelson Innovation Centre Feasibility Study) 1

Request for Proposal “Nelson Innovation Centre Feasibility Study”  

RFP No: 1617‐02‐NAEDP‐NIC Issue Date: August 2, 2016 

  Closing Date for Submission: Proposals will be accepted until August 19th 5:00 p.m. Couriered or emailed submissions are acceptable.   The submissions should be marked ‘RFP No: 1617‐02‐NAEDP‐NIC (Nelson Innovation Centre Feasibility Study)’, and sent to the Advertised Contact:    Organization Advertised Contact:   Name: Lisa Cannady Address: 201‐514 Vernon St. Nelson, BC V1L 4E7 Tel:  250 352‐1933    e‐mail:  lcannady@futures.bc.ca  Any questions regarding the scope of work or other technical specifications should be directed to:   Organization Project Director:  Name: Rose Hoeher Address: Box 119 Rossland, BC V0G 1Y0 Tel:  250 354‐7894     e‐mail:  coaching@kast.com 

ValueRAdded'Programs'Community'and''Entrepreneurs'

Selected'Technology''Companies'

Example'of'programs'include:'•  Informal'and'formal'workshops'and'

classes'available'to'all'entrepreneurs'–'community,'makers,'ar+sts,'digital'workers,'youth'

•  Access'to'business'services'

•  OnRsite'business'coaching'and'face'to'face'mentoring'by'seasoned'local'entrepreneurs'and'industry'execu+ves''

•  Advice'to'tech'companies'on'industry'strategy'and'access'to'funding,'finance,'and'capital'markets'

•  Accelerator'services,'intellectual'property'and'R&D'assistance'

•  Governance'and'organiza+onal'strategies''

•  Other'specific'value'added'services'to'help'technology'companies'move'to'the'next'development'level''

Success'Factors'

•  Entrepreneur'led'

•  LongRterm'vision'and'community'support'

•  Programs'should'be'sectorRfocused'•  Deep'understanding'of'target'market'

•  Programming'adds'value'and'sector'engagement'

•  Outcomes'tracked'and'measured'where'possible'•  Financially'sustainable'

•  Well'thought'out'governance'structure'

•  Set'milestones'for'evalua+on'with'flexibility'for'adjus+ng'

'

' Source:'Startup'Canada,'Brad'Feld,(StartOUp(Communi9es,'and''Best'Prac+ces'document'provided'by'CF'

Heritage'Building'

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Example'of'CoRWork'Spaces'

Anchor'Tenant'Private'Offices'Gathering'Space'

'for'Entrepreneur''Community'Events'

Amazing'Coffee''and'Snack'Bar'

CoRWork'Space'

Private'Mee+ng''Rooms'

Shared'Equipment''Space'

Crew'Collec+ve,'Royal'Bank'of'Canada'Building,'James'Street,'Montreal'

Mining'Cluster'

Technology'

Forestry'Cluster'

Nelson’s'Innova+on'Ecosystem'Today'

MIDAS'

Selkirk'College'

Selkirk'College'Digital'Arts'

Business'Support'Programs'

Entrepreneurs'Technology'Workers'

Digital'Arts'and'Film'Makers'Crea+ve'Community'

Makers''

Kamloops'Incubator'

Okanagan'Accelerator'

UBC'Okanagan'

Nelson'

CoRWork'Space'

Nelson'Tech'Club'Tech'MeetRup'Club'

Broadband'

Community'support'for'an''Innova+on'Centre'

Housing'

Mining'Cluster'

Technology''Cluster'

Forestry'Cluster'

Nelson’s'Innova+on'Ecosystem'Tomorrow*'

MIDAS'

Selkirk'College'Castlegar''

Selkirk'College'

Maker'Space'

Maker'Space'

Film'

Intelligent'Community''

Tech'Des7na7on'

UBC'Crea+ve'Wri+ng''

Revelstoke'Kamloops'Incubator'

Okanagan'Accelerator'

UBC'Okanagan'

SFU'

Other'Incubators'

Other'Incubators'

Other'Incubators'

Vancouver'High'Tech'Community'

Broadband'

Crea+ve'Community'and'makers'

Anchor'Tenants'

Nelson'Innova+on'Centre'

'*'No+onal'and'not'to'scale'

Technology'

Incubator'Accelerator'