HomeMy WebLinkAboutFY 2016-17 CVEP Funding CommitmentCITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
STAFF REPORT
REQUEST: APPROVE A FUNDING COMMITMENT OF $50,000 TO THE
COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2016/2017
FISCAL BUDGET
SUBMITTED BY: Ruth Ann Moore, Economic Development Manager
DATE: June 30, 2016
CONTENTS: Letter of Request from the Coachella Valley Economic Partnership
CVEP Benefit Summary for City of Palm Desert
Recommendation
By Minute Motion, approve a funding commitment of $50,000 to the Coachella
Valley Economic Partnership's 2016/2017 fiscal budget.
Funds have been included in the proposed General Fund Budget for 2016/2017
under the Economic Development Dues; Account No. 1104430-4363000.
Executive Summary
The Coachella Valley Economic Partnership (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 44
companies and created more than 125 high -skilled, year-round jobs. To date, five of the iHub
businesses have either relocated to or are currently operating from locations in Palm Desert.
CVEP's College and Career Readiness program provides scholarships, career consulting and
paid internships by local businesses. Over the past 7 years, more than 2,152 scholarships
totaling $10.1 million have been awarded to Coachella Valley students.
Currently, CVEP is looking for a one-year commitment of $50,000 from Palm Desert.
Background
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 2015-2016 Return on
Investment (ROI) is listed in detail in the attached report and includes:
• $85,000 in scholarships to Palm Desert based students
• Assisted Palm Desert based businesses in securing over $7.3 million in loans and equity
investments
Staff Report
CVEP Contribution 2016-2017
June 30, 2016
Page 2 of 2
• Assisted in the startup of three (3) Palm Desert based businesses
• Over 600 Palm Desert residents attended CVEP hosted training sessions
• CVEP provided 285 direct consulting hours to Palm Desert businesses
CVEP staff values the ROI for Palm Desert at $7,431,904 during the fiscal year (FY) 2015/2016.
Fiscal Analvsis
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 2016/2017 General Fund Budget. Therefore, staff
recommends the approval of the $50,000 funding commitment to CVEP.
Sub i d By:
h n Moore
Economic Devel pment Manager
Reviewed:
(Aft� JaLCA- 67
ne core, Director of Finance
Approval:
4' kt
J i McCarthy, Interim City nager
Department Head:
Min Alvarez,
Director of Economic Development
Rudy4Acsta, Assistant City Manager
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June 17, 2016
To: Mayor Robert A. Spiegel and the City Council of the City of Palm Desert
From: Joe J. Wallace, CEO and Chief Innovation Officer, CVEP
Re: Funding Request for FY 2016-2017
Dear Mayor Spiegel and Council Members:
Let me first formally congratulate you on a Job well done during the last several years in guiding the City
of Palm Desert through the post RDA challenges. Believe me, having gone through a similar experience
with CVEP, I understand and appreciate the work associated with navigating through a challenging
situation.
CVEP and the City of Palm Desert have enjoyed a long and mutually beneficial relationship. The CViHub
brought me to this beautiful region and I am now honored to have been chosen to lead CVEP into the
future. I am thankful every day for that opportunity.
The City of Palm Desert has continuously invested in CVEP over a number of years and I 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 we can openly
communicate about what we can do to best serve your interests. I 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 2015-2016 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 I have chosen to make our home, to enhance the efficacy of the partnership between CVEP and
the City of Palm Desert.
Best regards,
Joe J. Wallace
CEO and Chief Innovation Officer
3 u EAST "AHQL TL CAN'YUN WAY • PALM SPRINGS, CALIFORNIA 9226) •PH 760 3401575 , F% 750 548 0370 W W W CVEPCOFA
Benefit Summary for City of Palm Desert
From
CVEP Activities during FY 2015-2016
During FY 2015-2016 Measurable Benefits:
• $85,000 in scholarships to Palm Desert based students
• Assisted Palm Desert based businesses in securing $7,310,009 in loans and equity
investments.
• Assisted In the startup of 3 Palm Desert based business in Business Development Group (value
$9,000)
• 611 Palm Desert residents attended CVEP hosting training sessions (value $12,220)
• Provided 285 direct consulting hours to Palm Desert businesses (cost was $15,675)
Total Measurable Financial Benefit to City of Palm Desert in FY 2015-2016
$7,431,904
Intangible Benefits from CVEP Operations
• Business Attraction Efforts
o American Airlines SkyVision Ads: Summer 2016
o Business 360 Interview: Fox Business News
o Attendance at various specialized trade meetings
o Newsletter
o Economic Summit
• Support of General Commerce
• Investment Opportunities available for Accredited Investors
o PS Talent royalty agreements returned 37% in one year
o EV Enterprises short term notes returned from 10% to 160% (various transactions)
o Solaris went public via a reverse merger
o Indy Power Systems ROI based on most recent private trades: 404% (company private
with investment options available to accredited investors