Terrace Bay Economic Update – September 2012 1 of 8

This document provides a snapshot of the Terrace Bay economy over the past 6-9 months. Looking for more information on Terrace Bay? Visit www.terracebay.ca or www.facebook.com/yourterracebay $250 MILLION INVESTMENT BY ADITYA BIRLA GROUP IN AV TERRACE BAY INC. The sales process of the pulp mill to the Aditya Birla Group was completed in July 2012 and concluded with the creation of AV Terrace Bay Inc. Aditya Birla has been in existence since 1857. The company owns and operates several lines of business around the world, their revenue at the end of last year was approximately $25 billion US and they employ an estimated 133,000 employees in total. Workers began receiving their offers of employment in late July and were called back to work in early August. The short-term plan for the operation is to start-up regular pulp production process as soon as possible with estimates of October 2012. In the long-term, the operation will be converted over the next two-three years to a dissolving pulp operation through a $250 million investment. Aditya Birla currently operates four dissolving pulp facilities – two in New Brunswick, one in India, and one in Sweden. The Aditya Birla Group currently employs 6,000 workers in Canada. TERRACE BAY RECOGNIZED AS “BEST OF THE LAKE” BY LAKE SUPERIOR MAGAZINE Terrace Bay was recently recognized with numerous awards in the prestigious Lake Superior Magazine "Best of the Lake" contest for 2012. Lake Superior Magazine has been holding the contest for the past 33 years and voting surveys are featured online as well as in the magazine. Some of the areas Terrace Bay was recognized include:

Best Views (Overlooks) – the Terrace Bay Lighthouse, the Tourist Info Centre lookout and the Aguasabon Falls

Best Gift Shop - Hummingbird Haus Best Beaches - Terrace Bay Beach Best Places to Paddle - Slates Islands Provincial Park Best Places to Hike - Casque Isles Trail Best Views (Lodging) - Imperial Motel Best Places to Eat - Drifters Restaurant

ECONOMIC UPDATE Produced by Terrace Bay Municipal Staff

1 Selkirk Ave., PO Box 40, Terrace Bay, ON, P0T 2W0 Phone: (807) 825-3315, Email: info@terracebay.ca

September

2012

www.terracebay.ca/news

Terrace Bay Economic Update – September 2012 2 of 8

GRAND CELEBRATION OF AV TERRACE BAY INC. The hard work of many people was recognized on Friday, August 24 in Terrace Bay with a Grand Celebration of the $250 million investment by the Aditya Birla Group and creation of AV Terrace Bay Inc. Government officials from throughout the region were on hand and over 300 people were in the crowd to watch the event. Terrace Bay Chief Administrative Carmelo Notarbartolo was the Master of Ceremonies for the event which included speeches by the Honourable Michael Gravelle, Minister of Natural Resources and Terrace Bay Mayor Michael King which paid tribute to the resilience of the Community during the tough times, the incredible efforts of many in putting together the mill purchase, and the positive outlook for the future. Aditya Birla Group representative Vijay Kaul spoke about the great relationship formed with the Ontario government and the Municipality during the process and how excited he was about the team they had in place in Terrace Bay and the company’s bright future. A ten-minute video from the CEO of the Birla Group, Kumar Mangalam Birla, was played and the crowd was hanging on every word as he outlined his company’s long-term plans for the mill. At times, some in attendance seemed to be fighting back tears in tribute to the tough times the Community had faced and how happy they were about everything the Celebration meant. The celebration also included a special presentation by Minister Michael Gravelle of a Diamond Jubilee Medal to local Horst Prager in recognition of all his efforts volunteering within the Community. Upon the conclusion of speeches, visitors were treated to a special lunch encompassing the many tastes of Terrace Bay and India proudly supported by TBayTel. 2012 LIGHTHOUSE STREET FESTIVAL IN TERRACE BAY On August 24th, Terrace Bay held its annual Lighthouse Street Festival in the middle of its recently revitalized downtown. The festival progressed into activities for all ages including bingo, horse shoes, carnival games, giant inflatable castles, the Science North Cool Caravan and a show and shine. Some of the biggest hits were the clowns with their face painting skills and the fan friendly juggler with his array of talents. A beer garden was run by the volunteer fire department and the businesses had sales and food specials to mark the occasion. The festival also included vendors from throughout the region and a DJ playing music throughout the night. Chief Administrative Officer Carmelo Notarbartolo said "It was a very fun day for our residents and visitors from through the region. It took a substantial amount of work from our staff, volunteers and businesses, but was well worth it when we look at the impact on our economy." The Lighthouse Street Festival had 1,310 visitors with 275 being from outside of Terrace Bay & Schreiber. Local businesses remarked that it had a major impact on their sales and some said it was easily their best day of the year.

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TERRACE BAY DOWNTOWN REVITALIZATION PROJECT MEETS EXPECTATIONS The $3 million Downtown Revitalization Project was completed in July 2011 and the Municipality continues to receive excellent news in regards to business growth and increased visitors to the Simcoe Plaza area. Business owners have remarked that they have seen a noticeable increase in tourists and regularly hear positive comments on the new look to the downtown. The Township recently partnered with the Superior Seniors to cater to a visiting bus tour of the 55+ Club from Thunder Bay that came to see the downtown. The lighthouse received 13,000 visitors in its first year of being open; a number which is expected to increase this year with a full tourist season. New business growth has included Terrace Bay Solar, the Great Outdoors, the Cave, Kendra’s dog grooming, expansion at Northern Computers, remodelling/new ownership at the Terrace Bay Bakery, sale of the Print Shop and improvements to Drifters Restaurant and Imperial Motel. With the good news at AV Terrace Bay Inc., the business sector in the Community is expected to continue to grow.

MCCAUSLAND HOSPITAL AND WILKES TERRACE Wilkes Terrace continues to run at occupancy of 100% with a substantial waiting list. Residents have come not only from Terrace Bay, Schreiber and Rossport, but from neighbouring regional communities as well. The facility, staff and programs have quickly developed into a desirable long term care location for area residents and their families. As expected, shortly after opening, the occupancy level in the chronic wing of the hospital fell dramatically and the number of alternate level of care (ALC) bed days decreased dramatically. Over the past year, however, the chronic wing has returned to 100% occupancy, indicating pent up demand for the quality service offering of The McCausland Hospital.

55+ Club Bus Tour Stops in the Downtown Terrace Bay Lighthouse

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CULTURAL CENTRE PROJECT – TWO YEARS LATER The Terrace Bay Cultural Centre has been open for over a year and the response from the public is overwhelmingly positive. In the first year of operation at the new site, the Public Library has had 1,152 active users and 19,576 total visitors. Users checked out 13,252 materials and 276 E-Books. The Public Library has run 84 programs with 1,368 program participants and their website has had over 15,000 hits during this time. The Seniors Activity Centre is a busy place with regular meetings and functions. The Michael King Hall is a hit with numerous events being held throughout the year.

SUPPORTIVE HOUSING PROJECT SUBMITTED FOR FUNDING REVIEW Terrace Bay Council identified a need for supportive housing in its 2011-2014 strategic plan and directed staff to work towards this goal. A steering committee was formed in June 2011 and research was completed to further investigate the issue. The Municipality carried out a review of potential property that may be a fit while conducting an expression of interest for a private sector partner. Two public forums were held for feedback from the public in cooperation with the hiring of FORM Architecture. These activities led to a partnership with a private sector partner and a submission towards the funding program administered by Thunder Bay District Social Services and Administration Board. The proposal received a favourable grade and is awaiting final word which should come in Fall 2012.

TERRACE BAY BEGINS INTERNET PROMOTION PROJECT In April, Terrace Bay began an innovative web based promotion project utilizing the immensely popular www.tbnewswatch.com website. Municipal staff are regularly updating a banner ad on TBNewswatch to attract tourists and investment and redirect them to www.enjoyterracebay.ca. TbNewswatch.com receives 1.2 million visitors a year. The project will be completed at the end of September. This project was made possible by a Superior North CFDC Local Initiatives Contribution. The Local Initiatives Contribution program is funded by FedNor.

CELEBRATE ONTARIO FUNDING FOR LIGHTHOUSE STREET FESTIVAL In March 2012, the Honourable Michael Chan, Minister of Tourism, Culture and Sport announced that Terrace Bay was successful in its funding application for $39,000 from the Celebrate Ontario program administered by the Provincial government. The Township used the funds to purchase new tables, chairs and safety fencing from Terrace Bay Home Hardware for the Lighthouse Street Festival which will improve all events and decrease annual costs. The Lighthouse Street Festival is planned for Friday August 24, 2012 with expanded activities. More information – www.terracebay.ca/festival

PIONEER CONSTRUCTION COMPLETES HIGHWAY RESURFACING IN TERRACE BAY Pioneer Construction worked quickly to re-pave more than 16 kilometres of Highway 17 from Terrace Bay to Schreiber. The work created about 40 jobs in the area and was designed to improve the pavement condition and reduce maintenance requirements as part of the Growth Plan for Northern Ontario by the McGuinty government. The total project budget was $4.2 million. Residents were impressed with the lack of delays and great look of the new highway pavement.

Supportive Housing Public Forum

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NEW BUSINESS GROWTH!!! THESE ARE JUST SOME OF THE GREAT NEWS STORIES COMING OUT OF OUR BUSINESS COMMUNITY IN THE PAST YEAR

Pam Williams and Dean Nelson recently opened "The Cave" in the Red Dog Inn and completed an

extensive renovation with a new trendy look.

The Terrace Bay Bakery has remodeled the inside of their restaurant and Renee Deschatelets has taken over the business from her father with new services.

Drifters Restaurant has been renovating the front

of their motel business and adding an outdoor patio for its patrons to enjoy

Northern Computers owner Brian Doig has hired Paul

McGrath through an apprenticeship program and other staff in expanding his business

Wah’s Chinese Restaurant has been sold to

new owner Cao Ming and his family

The Print Shop has been sold to new owner Deanna

Cooper and they are also offering children's toys now.

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2012 GREEN TRADESHOW A SUCCESS It was another successful year for the Green Tradeshow which attracted approximately 750 visitors from throughout the region. The Tradeshow was at full capacity with 80 exhibitor tables and showcased four energy efficient vehicles to the public. The Tradeshow featured the 2012 Chevy Volt electric car and other exhibitor booths encompassing a range of green ideas including solar panels, education and awareness, outdoor experiences, green products and services, and ways to live a healthier life. Another new feature was the kids craft area that utilized recyclable materials to build tin can robots, plastic bottle bird feeders and more. The marketing activities for the 2012 Green Tradeshow were made possible by a Superior North CFDC Local Initiatives Contribution. The Local Initiatives Contribution program is funded by FedNor. The Green Tradeshow also accepted food donations in lieu of an admission fee and almost filled the back of a 2012 Sierra Extended Cab on display from Spadoni Motors Ltd.

LAKE SUPERIOR DAY IN TERRACE BAY There was a great turnout for this year's Lake Superior Day. Visitors helped with a volunteer beach cleanup and the Township treated visitors to free boat rides, tandem kayaking, guided hikes, and kid’s games. Jimmy’s Chip Stand provided delicious food specials. Over 200 people attended the event which was a huge success. The event was held in partnership with Parks Canada and the Lake Superior National Marine Conservation Area.

2012 DRAGFEST ATTRACTS THE VISITORS The 2012 Dragfest was another huge success with visitors coming from throughout Canada and the United States. The event attracted 240 cars and over 8,500 visitors to the three day drag racing festival which also featured a show & shine, vendors, and great food. This was the 14th consecutive year for the event which is operated by an incredibly dedicated group of volunteer organizers.

2012 Hazardous Waste Day

Treasure Quest Scavenger Hunt

Seniors Night Activities

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AREA BUSINESSES INVESTING IN SOLAR POWER Two businesses in Terrace Bay have recently utilized the Ontario Government Feed in Tariff program to install solar power systems on their buildings. Terrace Bay Solar has installed a 40 kw/h system on top of their building in the middle of Simcoe Plaza and they also offer solar panel installation. The Norwood Motel also recently installed a 10 kw/h solar system on the East side of their establishment. Terrace Bay has above average potential for solar power.

SUPERIOR NORTH CFDC HOLDS ITS ANNUAL GENERAL MEETING IN TERRACE BAY Anne-Marie Bourgeault, General Manager along with Board Chair Michael Beno, welcomed guests and members to the event. Michael presented a message from the Board, followed by a report from the General Manager outlining accomplishments in 2011. The staff of Superior North CFDC also briefly presented information on the inclusion of Superior North CFDC in a province wide publication for the Ontario Association of Community Futures Development Corporations; information on the Superior Self Employment Benefits program; an update on the North Shore Network meetings; communications and participation at the Thunder Bay Franco- Festival. Tiffany Carlin, Community Economic Development Officer from FedNor brought along greetings from Aime Dimatteo, Director General of FedNor, which is the principal funder of Superior North CFDC. A review of the financial statements, election of officers and a question and answer session were also on the agenda. Terrace Bay is very proud of the business advisory services provided by Superior North CFDC in the region.

The Golf Course Held Another

Successful Aguasabon Masters Golf Tournament with 40 Teams Entered

MNR Staff held a great ‘Bass Blast’ event with education/prizes designed

to teach fishing basics to youth

Terrace Bay emergency services and their partners held a training

exercise on distracted driving

Terrace Bay is Extremely Proud of Support Received from its Government Partners:

Norwood Motel