City of Vancouver to dissolve Vancouver Economic Commission

VEC CEO Eleena Marley (Vancouver Economic Commission)

The City of Vancouver has made a decision to close its business and economic investment attraction agency.

In a bulletin this morning, the municipal government states the Vancouver Economic Commission (VEC) will begin winding down and decommissioning its operations, effective immediately.

Instead, “the functions of the VEC” will be brought under the newly created Business and Economy office within the City Manager’s Office, which will have the “mandate to ensure the City’s strategy, policy, and programs consider implications for business, while also achieving financial efficiencies.”

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For decades, VEC has had a major role in advocating for Vancouver’s economic growth and interests, marketing its economic strengths to the global business community and foreign investors, and working with companies considering establishing a presence in the city. For example, it led Vancouver’s campaign against hundreds of other cities in the pursuit of landing on Amazon HQ2.

VEC has been involved in attracting well over $3 billion in high-impact investments for Vancouver, including in the tech sector and the film and television production industry.

Up until recently, although it technically serves the City of Vancouver, the VEC has historically also acted as the de facto investment attraction agency for the entire Metro Vancouver region.

However, about four years ago, Metro Vancouver Regional District created a new regional investment attraction agency called Invest Vancouver, which has created some duplication between VEC and the new regional agency.

As well, the recently launched Frontier Collective, a non-profit coalition of business leaders and companies, is also looking to expand its work in promoting the region’s tech industry on the world stage and growing investment and infrastructure. In partnership with the municipal and provincial governments, the Frontier Collective noticeably took the lead on Vancouver’s representation in this year’s South by Southwest (SXSW) Conference in Austin, Texas, whereas previous delegations and the organization of “Vancouver Day” at SXSW were led by the VEC.

“By further integrating business support functions into the day-to-day work of City Hall, it will ensure the City optimizes these supports in a coordinated way,” said City of Vancouver manager Paul Mochrie in a statement. “Particularly with Metro Vancouver’s creation of Invest Vancouver in 2019 to attract investment into our economy at a regional level, this new office will help the City focus on the local economy, supporting Vancouver businesses, and complementing Invest Vancouver’s business attraction and retention work.”

Prior to the pandemic, VEC had an annual budget of about $3 million and a team of roughly 20 staff. Its office was previously located in downtown Vancouver, until its recent relocation to an office building near Vancouver City Hall. VEC was founded in 1995.

The municipal government states there will be a phased decommissioning plan to minimize the impacts of the transition on the business community and program partners.

“This move reflects the immense importance of business support and economic development to City Council,” said Mayor Ken Sim. “We’re focused on being business friendly at City Hall, which means delivering services and support in the most seamless and efficient way possible for local businesses.”

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