Proponents of the equine industry are hoping $134,000 could get economic development on the right trail.
On Dec. 16, council held a special meeting to review a report prepared by the Erin Equine Task Force.
It was a packed room as residents and those involved in the equine industry came to hear the results of a project in the works for nearly two years.
The presentation included both a power point presentation plus a 46-page draft report for councillors to review.
Speaking to the project were co-chair Mary Venneman and Dr. Kim Hall, involved in the equine survey development/research specialist.
Early on in the presentation, it was made clear that this was not just about developing the established equine industry, but using it as opportunity enhance the economy of all of the Town of Erin.
Work involved 90 interviews, 30 of which were equine businesses, 30 involved equine businesses involving riders and 30 individuals who are riders.
Each interview averaged 1.5 hours.
Venneman estimated those interviews generated over 1,000 recommendations.
She said increasing the town revenues generated annually through property taxation, would reduce the individual tax burden on residential property owners.
Figures used by the task force indicated that residential taxes make up 89% of the tax base while the remaining 11% was comprised of the remaining tax categories such as industrial, commercial, farmland and managed forests.
“We considered it an important goal to try to redistribute the tax burden.”
Venneman explained there are only a few ways to increase municipal tax revenue:
– increase the mil rate;
– assessment value increases; or
– increase property values through capital improvements.
Since the goal was to provide more equitable distribution of the tax share, Venneman said the increased value of commercial and farm-business assessments would assist that goal.
The group’s goal is to expand existing businesses and encourage new businesses to establish routes in Erin.
Venneman said the group then explored the key drivers to make that happen to promote capital improvements.
She said for commercial enterprises it is a matter of demand outpacing what is currently available.
“Businesses are then encouraged to expand to accommodate the additional demand, or new businesses would be motivated to move here.”
For industries, one of the primary motivators include cost – the cost to build and servicing.
In terms of economic development, Venneman said marketing of the town could result in increased sales and create a favourable business climate.
Hall spoke of what those in the equine industry said to interviewers.
Four themes came through – marketing, infrastructure, manufacturing and sustainability.
Halls said the equine business and industry in Erin is very heterogeneous.
Two main camps include equine operations such as breeding, training and conditioning, eventing, riding instruction, recreations and facilities, versues equine support services which could include clinics, workshops, care, fedding, tack, carriages, clothing, and facility construction.
Hall said there is a real mix of business involved in the industry.
The estimate is that there are 250 equine-related business and services in Erin – with a 60/40 split between equine operations and support services.
With the average annual gross revenue for the businesses being $72,000, group members estimated the value within the community at $18 million.
Hall said these businesses account for 750 jobs, of which 384 are full-time jobs, and another 235 are part-time.
“What is really interesting about Erin is its incredible, uniquely placed position relative to the equine interests in this area.”
She said Erin was located centrally to a number of communities where there are a high number of horses.
Hall said Erin is also very proximate to the GTA as well.
“We are uniquely positioned to be a gateway to horse country.”
Recommendations included:
– adopt equine as the initial economic development engine
– focus on marketing Erin as the GTA’s equine playground
– expand trail infrastructure to attract riders an leverage nearby event facilities
– attract equine manufacturing for maximum tax revenue growth
– use equine to establish economic development framework.
Further the report recommended financial investment of roughly $135,000 and at the same time providing access to town staff expertise and resources.
The financial portion of the investment would cover the costs for an economic development coordination ($62,400), marketing and communications ($27,000) and trail development and signage ($45,000).
Group members hoped that 50% of the funding would come from provincial rural economic development program.
In terms of measuring success Venneman said the group is hoping for a 6.6 year investment payback which could potential increase equine property values by 10%, a 200% increase in equine property value from new building, and $500,000 in economic development investment over five years.
