Crea%ng  Christchurch's  Innova%on  Precinct  -­‐  EPIC  and  Beyond  

Tonight’s  Panel  

•  Colin  Andersen  -­‐  Chairman  of  the  Board  of  Directors  of  Epic  Christchurch  Ltd  

•  Tim  Trewinnard  -­‐  Sector  Leader  -­‐  Technology  at  Canterbury  Development  CorporaBon  (CDC)  

•  Apologies  from  Rob  Lawrence  -­‐  Technology  &  MarkeBng  Development  Consultant  at  Canterbury  Employers'  Chamber  of  Commerce    

Christchurch’s    Innovation  Precinct  

IITP  Canterbury    September  2012    

Colin  Anderson  

Tim  Trewinnard  

1.  The  space  enclosed  by  the  walls  or  other  boundaries  of  a  particular  place  or  building,  or  by  an  imaginary  line  drawn  around  it.  

2.  A  district  defined  for  the  purposes  of  government  or  representation  …  

3.  A  part  of  a  town  or  community  designated  for  a  special  purpose;  

      Oxford  English  Dictionary,  1989  

What  is  a  Precinct?  

The  History  of  Precincts  

* First  discussed  by  Alfred  Marshall  in  1890.    He  identified  four  benefits:  

*  Knowledge  spill  over  *  Access  to  a  common  pool  of  factors  of  production  *  Facilitation  of  specialisation  within  supply  chains  *  Ease  of  ‘comparison  shopping”  

Agriculture  and  Natural  Resources  

High  Value  /  Knowledge  Intensive  Manufacturing  

ICT  

Health  

IRL  

EXAMPLES:  TAIT  COMMUNICATIONS  SCOTT  TECHNOLOGY  MACE  ENGINEERING  

HAMILTON  JET  TALBOT  PLASTICS  

PVL  

UC  

AGRESEARCH  

PLANT  &  FOOD  

LVL  LINCOLN  

EXAMPLES:  SYNLAIT  

FONTERRA  WESTLAND  

UC  

FISI  

CPIT  

NIWA  

LANDCARE  

SIHIH  

HEALTH  PRECINCT  

OTAGO  

EXAMPLES:  JADE  

HEWLITT  PACKARD  ALLIED  TELESIS  

TRIMBLE  TELOGIS  AURECON  

DYNAMIC  CONTROLS  

EXAMPLES:  DHB  EBOS  ORION  EMENDO  

SCION  

Blue:  educaBon  Yellow:  CRIs  Red:  major  businesses  Green:  funders  /  incubators  

UC  

ESR  

EPIC  

First  principles  for  a  successful  innovation  hub1:  

1.  There  should  be  clear,  common  and  shared  purposes  and  strategic  intent.  

2.  Major  precinct  proponents  should  be  able  to  articulate  and  subscribe  to  core  operating  values.  

3.  Demonstrated  potential  for  added  value.    There  is  a  greater  benefit  for  a  participant  from  co-­‐location.  

4.  Transaction  and  co-­‐ordination  costs  should  be  lower  within  a  precinct  .    A  sustainable  precinct  must  combine  investments  in  both  innovation  stocks  and  innovation  flows.  

Combining  Precincts  and  Innovation  

1.  The  role  of  precincts  in  innovation  systems  –  a  discussion  paper,  T  Cutler,  2009  

Combining  Precincts  and  Innovation  

5.  Generic  program  or  policy  design.  

6.  Some  ‘natural’  market  organiser  or  ‘curator’.  

7.  Mechanisms  to  ensure  on-­‐going  motivation  through  champions  and  achievement.  

1.  The  role  of  precincts  in  innovation  systems  –  a  discussion  paper,  T  Cutler,  2009  

EPIC  Sanctuary  &  Sigma  Overview  

*  Christchurch  earthquakes  devastation  of  the  CBD  was  a  catalyst  for  action.  

*  Many  displaced  companies  with  a  compelling  need  to  find  premises.  

*  Strong  desire  to  do  something  positive  in  recovery  and  not  just  make  do!  

*  Unprecedented  opportunity  to  create  an  iconic  business  environment.  

*  The  EPIC  initiative  was  born:    

         “Enterprise  Precinct  and  Innovation  Campus”  

*  Led  by  Colin  Andersen  and  Wil  McLellan  

A  call  to  Action  

Vision  (Short  term)  

EPIC  Sanctuary  Build  Progress  

Timber  frames  going  up   Structure  50%  erected  (Jun  20)  

EPIC  Sanctuary  as  at  Sep  19th  2012  

Manchester  St  View   Tuam  St  View  

Nearly  there  –  tenant  fit-­‐outs  currently  underway  

*  CCC  land  deal  –  free  lease  over  5  years  *  Build  cost  total  $4.0M  *  NZTE  contributed  $900k  over  3  years  * MSI    contributed  $900k  over  3  years  *  BNZ  loan  of  $4.0M  *  Tenant  lease  agreement  signed  over  5  years  *  Loss  of  rents  insurance  for  12  months  *  Underwrite  for  tenant  rent,  cover  for  $300k  per  year  *  Underwrite  for  earthquake  insurance  excess  $250k  *  Building  buy  back  after  5  years  -­‐  $0.5M  

Note:   $500k  of  pro-­‐bono  professional  services  work  

EPIC  Sanctuary  Funding  

EPIC  Sanctuary  Sponsorship  

Company   Supplied  Goods/Services  

CCC   Landscaping  (front  &  back)  

Cisco   Wireless  Network  infrastructure  

Cisco   Video  conference  solution  

Orion   Transformer  cost  subsidy  

2  degrees   Bike  racks  and  parking  area  

Kitchen  Trends   Shared  Kitchen  fit-­‐out  

Noel  Leemings     Kitchen  appliances  

Bishop  Interiors   Meeting  room  tables  &  chairs  

Weta  Workshops   Artwork  within  campus  

Oasis  Hire  Plants   Internal  Plants  in  campus  

Overall  $250,000  of  direct  of  sponsorship  value  

EPIC  Sigma    Where  to  from  here?    

EPIC  Sigma  Vision  

Vision  (Long  term)  

* Commercial  business  hub  comprising  innovation,  ICT,    high-­‐tech  enterprise  based  businesses/tenants.  

*  Industry,  agency  &  education  hub  comprising  groups    co-­‐locating  in  innovation  campus.  

* Ancillary  facilities  and  uses  –  start-­‐up  &  extension  bizhub,      partner  centre,  conference  theatre  connected  globally…  

* A  unique  opportunity  to  work  smarter,  more  efficiently  and  lift  the  bar  on  a  global  scale.  

EPIC  Sigma  –  The  Essence  

* 70-­‐100  High  Growth  Potential  Companies  (2000+  staff)    

* Focus  Industries  for  NZ  –  Innovation  and  High  Tech  

* Business  efficiency  through  shared  services  

* Business  effectiveness  through  collaboration  

* Enable  growth  by  providing  safe,  affordable,  inspirational  facilities  to  attract/retain  talent  and  investment.  

* Reduced  flight  of  high-­‐tech  businesses  from  ChCh  

EPIC  Sigma  –  The  Opportunity  

* Engage  with  Govt  and  Educational  institutions  to  foster  ongoing  innovation  and  collaboration.  

* Modular  campus  design  to  spread  cost  and  enable  growth  

* Learn  from  world  leaders  in  this  space  e.g.  Google  

* Energise  the  heart  of  the  city  

* Establish  NZ  as  a  centre  for  world  class  innovation    

*  Increased  high-­‐tech  exports  for  ChCh  and  NZ  

EPIC  Sigma  –  The  Opportunity  

Phase  1  -­‐  Land  *  Land  option  -­‐  ability  to  access  land  for  EPIC  Sigma…  

Phase  2  –  Pre  commitment  *  Design/specification,  consents,  tenant  pre-­‐commitment,  

funding,  construction  contract…  

Phase  3  –  Construction  &  Delivery  …  

EPIC  Sigma  –  Project  Phases  

* Extensive  &  evolving  tenant  interest  (anchor  group)  * Engaged  with  CERA/CCDU/CDC/CCC/University/CPIT…  

* Active  discussions  with  Google  globally  

* Engaging  with  land  owners  

* Warren  &  Mahoney  compiling  concept  plans  

* Establishing  corporate,  governance,  advisory,  stakeholder  structures  and  approach.  

* Seed  funding  initial  work,  developing  longer  term  project  funding  and  investment  structure.  

* Currently  seeking  Independent  Chairman  

EPIC  Sigma  –  Current  Status  

Thank  You  –  Questions?  

How  can  the  IT  Industry  in  Christchurch  get  more  involved?  

We  aim  to  hold  follow-­‐up  events  

How  can  the  IT  Industry  in  Christchurch  get  more  involved?  

Info  and  ideas  can  be  posted  to  this  open  LinkedIn  Group