Coates believes local youngsters should see Shotton's progress as a pointer for their own future.
"We are working really hard in the Academy and we really want it to work for young aspiring footballers in the area," he told The Sentinel.
"We are getting there. We have excellent coaches and we are getting good feedback from parents with youngsters in the Academy.
"I've always been convinced this is a good football area, right back from when I played myself. I am sure the talent is out there, we just have to make sure we don't let it go elsewhere.
"It is also important financially to develop our own players because we are spending an awful lot coaching and bringing on these young players."