New IT initiative EXCITES Grand Falls-Windsor

Excitement is brewing in Grand Falls-Windsor as the town gears up to establish a 24,000 sq.ft. state-of-the-art information technology office building which will house information technology (IT) firms expanding into the area. The Exploits Centre for Information Technology Excellence (EXCITE) will receive a half million-dollar contribution from the Atlantic Canada Opportunities Agency (ACOA) and a further $630,000 from the Government of Newfoundland and Labrador. The Town of Grand Falls-Windsor will contribute $681,000. The total cost of the facility is $1.8 million.

The funding was announced today by George Baker, Gander-Grand Falls MP and Minister of Veterans Affairs and Secretary of State for ACOA, and Premier Brian Tobin.

"Working with the Exploits Valley Economic Development Corporation (EVEDC), the Town of Grand Falls-Windsor has been successfully enticing international IT firms to the area," said Minister Baker. "This new facility will provide the area with an added advantage in its marketing and recruitment efforts with a goal of building a cluster of information technology companies in the region."

The new facility will provide IT firms with the technical requirements and space necessary to set up operations in Central Newfoundland. EXCITE will be managed/operated as a not-for-profit corporation - the EXCITE Corporation - consisting of representatives from the town council and the EVEDC. The town will be responsible for the maintenance and operations, and the EVEDC will be responsible for marketing. The centre will be able to accommodate three firms in the first year of operation.

"The nature of the IT industry is that it can be done from any location," said Premier Tobin. "We have already shown that in this province. Our IT sector now generates in excess of $600 million with approximately 200 IT businesses operating throughout the province. IT companies here export their goods and services to more than 40 countries worldwide."

"Information technology is one of several emerging new industries that have been identified as key areas of growth potential, including in rural Newfoundland and Labrador," said Beaton Tulk, Minister of Development and Rural Renewal. "IT has also been identified by the local regional economic development board as a priority for economic development in this region, and was repeatedly highlighted as an area of opportunity during our public consultations on jobs and growth."

"The Town of Grand Falls-Windsor and the Exploits Valley Economic Development Corporation have been focused on developing the region�s information technology base," said Anna Thistle, MHA - Grand Falls-Buchans. "This new facility will help the area become a centre for information technology jobs allowing young people to find employment right here in the province."

Recent changes in the Municipalities Act have allowed the Town of Grand Falls-Windsor to take a major economic development role in this venture including a contribution of $681,000 towards construction costs and the provision of building and maintenance services once the facility is completed.

"We expect this initiative to result in 80 jobs with nearly $3 million in payroll by the end of 2001," said Mayor Walwin Blackmore. "The town and EVEDC have both been busy participating in trade missions and meeting with potential tenants. With a new facility, a list of 1,200 interested and qualified candidates ready to work, and College of the North Atlantic ready to provide workplace training for new companies, the town is in an excellent position to become a focal point of IT in the province."

Media contact:

Doug Burgess
ACOA
(709) 772-2935

Josephine Cheeseman
Development and Rural Renewal
(709) 729-4570

Carmel Parsons
Treasury Board
(709) 729-6830

Walwin Blackmore
Mayor, Town of Grand Falls-Windsor
(709) 489-0412

BACKGROUNDER
EXCITE

- The Town of Grand Falls-Windsor emphasized Information Technology in its 1998 Economic Development Task Force Report, "Gateway to the New Millennium".

- The Exploits Valley Economic Development Board (EDEVC) prioritized IT in its 1997 Strategic Plan.

- Both reports acknowledge the strong education sector in Grand Falls-Windsor that can partner with IT companies and both acknowledge the ability of the IT sector to attract and retain young people.

- The town and the EVEDC have facilitated several partnerships in support of the local IT sector. The College of the North Atlantic and Operation ONLINE are partners with the EVEDC in an incubator facility for IT companies at the College of the North Atlantic�s Grand Falls-Windsor Campus. HRDC is also a partner through its training programs.

- In September 1998 the EVEDC attended Softworld �98 in St. John�s and made contact with DP Solutions Incorporated of North Carolina. Working with EVEDC IT staff, the College of the North Atlantic, Operation ONLINE, and HRDC, DPSI opened a software development office in Grand Falls-Windsor on March 8, 1999. DPSI now has over 50 workers and will be the anchor tenant of the EXCITE Centre.

- In July 1999, the town and EVEDC undertook a fact-finding mission of IT facilities in other Atlantic communities to determine what these centres do to support IT. Grand Falls-Windsor had the three common ingredients found: excellent communication technology infrastructure; excellent partnerships between all three levels of government; and excellent access to highly-trained workers through local colleges� IT programs.

- The town and EVEDC realized all they needed was a facility - the EXCITE Centre - with the technical capabilities needed by IT companies.

- The EXCITE centre will be a 24,000 square foot, state-of-the-art high tech building with scalable office space. The total cost of construction is $1.8 million - $630,000 from the province; $500,000 from ACOA; and $681,000 from the town.

- EXCITE will be managed/operated as a not-for-profit corporation - the EXCITE Corporation - consisting of representatives from the town council and the EVEDC. The town will be responsible for the maintenance and operations, and the EVEDC will be responsible for marketing.

- The EXCITE centre is the first of its kind in Newfoundland - there are 20 or more such facilities in Nova Scotia.

2000 08 03                                  11:55 p.m.