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Home My WebLink AboutFY 2017-18 CVEP Funding Commitment i\A CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT • REQUEST: APPROVE A FUNDING COMMITMENT OF $50,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2017/2018 FISCAL BUDGET SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: July 13, 2017 CONTENTS: Letter of Request from the Coachella Valley Economic Partnership CVEP Benefit Summary far City of Palm Desert Recommendation By Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 0171 018.fiscal budget. Funds have been included in the approved Fiscal Year 2017-2018 General Fund Budget under the Economic Development Dues; Account No. 1104430-363000. Executive Summary Approval of the staff recommendation would provide to Coachella Valley Economic Partnership (CVEP) a one-year commitment of$50,000 from Palm Desert. Background The CVEP is a regional collaboration of cities and the county, companies and school districts working toward growing business and developing a skilled workforce for the Coachella Valley. With the creation of the Coachella Valley iHub in 2009, a business incubator and accelerator campus, CVEP has helped launch almost 56 companies and created more than 163 high-skilled, year-round jobs. To date, seven of the iHub businesses have either relocated to or are currently operating from locations in Palm Desert. In addition, $715,000 of capital has been assessed by Palm Desert businesses. Since 2010, The City of Palm Desert has invested $50,000 each year as its contribution toward the regional economic development efforts of CVEP. Palm Desert's 2016-2017 Return on Investment (ROI) is listed in detail in the attached report and includes: Staff Report CVEP Contribution 2017- 018 July 13, 2017 Page 2 of 2 • Seven client businesses based in Palm Desert • 55.hours of counseling for:Palm Desert businesses • 12 seminars/training sessions conducted in Palm.Desert • Five Palm Desert based business owners or managers featured as experts for presentations and training • 85 training session attendees • $715,000 of capital accessed by Palm Desert businesses Fiscal Analysis Palm Desert currently plays a collaborative role with other regional organizations such as the Convention and Visitors Bureau to promote tourism throughout the valley. This collaboration potentially increases the economics of the valley and quality of life for Palm Desert residents. Attracting business to the Coachella Valley, whether located in Palm Desert, another city, or the unincorporated area, will add wealth to the community allowing Palm Desert to increase its tax base, Funding is available:in the City's FY 201M018 General Fund Budget. Therefore, staff recommends the approval of the $50,000 funding commitment to CVEP, Sub . By: Department d: Muth An Moore, in Alvarez,Economic Development Manager Director of Economic Development Reviewed: t Moore,.Director of Finance Approval: auri Aylaiant City Manager {3:5Ewn El9yalc ur59rillFbill,Al WI14boiilSThFF REAQPT VFP ardayfilark 17-18 074347.O COACHELLA VALLEY ECCIFLDMIC PART NE FISH Hz Et9 June 27, 2017 Mayor Jan Harnik and Council Members 73510 Fred Waring Drive Palm Desert CA 92260 Re: Funding Request for FY 2017-2018 Dear Mayor Harnik and Council Members: As you know,CVEP and the City of Palm Desert have enjoyed a long and mutually beneficial relationship. The City of Pa'm Desert has continuouslyinvested in CVEP over a number of years and l thank you on behalf of CVEP for that support. The purpose of this letter is to ask the City of Palm Desert to remain on the CVEP Board of Directors with annual investment of $50,000 as the City has since the adoption of the Economic blueprint. As CVEP resurrects business attraction as a core mission, it is important to maintain or even grow the investment levels of our public partnerships. Continuing to serve on the CVEP Board of Directors will provide a forum through which wo can openly communicate about what we can do to best:serve your:Interests, L have provided a benefit summary for the tangible and intangible benefits that the City of Palm Desert residents and businesses received as a result of CVEP activities in FY 2016-2017 for your reference. I thank you for the opportunity to make this•request and look forward to a long and prosperous relationship,:I am always available to meet with the.leadership of Palm Desert, the city where my wife Karen and l have chosen to make our home,to enhance the efficacy of the partnership between CVEP and the City of Pal nDesert. Beat givikee_____ Jo= .W + ace CEO and Chief Innovation Officer 3PPFusi r*I1 uerzcA„ION - .51.1 1,465,c-ittIFO.PNIA13262•ra-7au-3+o,srsafx-lea 541 as?0;www.C10%r.C.a+F COACHELLA VALLEY ECONOMIC PART JEnSH1P City of Palm Desert ROI Report (FY 16.47) Business Services Center • 7 Client Businesses Based in City of Palm Desert • 55 Hours of Counseling • '125eminars/Training Sessions Conducted in Falm.Desert • 5 Palm Desert-Based Business Owners or Managers Featured as E cperts (42%) • 285 Training Session Attendees • $715,000.of Capital Accessed by Palm Desert Businesses (312 Million since 2012) iHub Business Incubator pusouprommi.Toiltiimpiriarroliawmon4 blew Companies 50 56 Graduates 9 . 19. Equity Investments .S7Million $20+ Million Employees 290 .163 ' DebtCaital $3 Million 33.2 Million [variable) Grants. 5 Million $3.4 Million _Technology .20 Patents 19 Patents CVEP Total Economic Impact for 2016* Direct $55.OM $2,3M _ $57.3M Indirect , $10.3M Slim Induced $11.OM $1,OM $12.OM Total $76.3M $4,0M $80•3M CVEP Funding Sources. Public Funding_ _ $481,500 (40,9%) Healthcare Sector $150,000 (12,7.% _Banking Sector $133,000 (11:3 ) Other Private Businesses ; $172,500 14.7% Se11 Generated 240.000 (20.4% 'Analysis by Elliot D.Pollack&Company,Corn miss nnd by Southern California Edison /FnEt5fT I' wyg c ANYCIP4 WAY PALM 5,11 MU 5.CALM AMA 4l2d2-fli:7e43d4JS73•Fin 7d0 ACM 637fi•WWW.CVERCOM