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HomeMy WebLinkAboutCVEP Funding for FY 2010/11 - Consider 5 yrPALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE A FUNDING COMMITMENT OF $100,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2010/2011 FISCAL BUDGET AND INCLUDE A LINE ITEM IN THE REDEVELOPMENT AGENCY BUDGET FOR DISCUSSION FOR THE FOLLOWING FOUR (4) YEARS AT THE SAME AMOUNT SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: June 24, 2010 CONTENTS: Letter of Request from the Coachella -Valley Economic Partnership Recommendation By Minute Motion: 1. Approve a funding commitment of $100,000 to the Coachella Valley Economic Partnership's 2010-2011 fiscal budget; and 2. Consider a five-year funding plan in the same amount to be paid by the Redevelopment Agency Economic Development budget. Funds have been included in the proposed Financial Plan for 2010/2011 Economic Development Dues, Account No. 850-4430-422-3630. Executive Summary The Coachella Valley Economic Partnership (CVEP) is in the process of reorganizing and began with the Blueprint, an assessment for attracting business, along with goals and objectives for the organization. CVEP is asking all of the Coachella Valley Cities and the County to assist in funding the attraction of business over the next five years as they investigate a self -funding mechanism. Three cities (Indian Wells and Palm Springs at $100,000 each and Desert Hot Springs at $50,000) have already committed to the funding with other cities in consideration during budget discussions. Funds have been included in the proposed Financial Plan for 2010/2011 Redevelopment Agency Budget. Background The City Council met in a study session to review the CVEP Blueprint on January 28, 2010. A brief overview follows. Staff Report CVEP Contribution June 24, 2010 Page 2 of 4 In conjunction with the nine valley cities, educational institutions, and various business groups, a study was funded with the nationally prominent economic development consulting firm, Market Street Services, to develop a comprehensive economic development strategic plan for the region. A steering committee of community leaders was formed, and the result of months of hard work is the Coachella Valley Economic Blueprint. The first part of the process was to perform a competitive assessment of the Valley. This analysis determined the Coachella Valley's competitiveness as a place of business for entrepreneurship, existing, expanding, and relocating companies. It reviewed the strengths, weaknesses, opportunities, and threats to an area as they pertain to business development. Several challenges include many business sectors with low -wage jobs, lower educational attainment, unskilled workforce, and a comparatively older population. The opportunities include an entrepreneurial population that is adept at starting and growing businesses, a potential labor force of semi -retired and retired individuals who start businesses or give advice to entrepreneurs, quality of life, and expanding higher education. Next a target business analysis was conducted to determine the most promising business sectors for the Valley to pursue. The analysis used quantitative and qualitative research such as current trends and valley concentrations to determine the business clusters that would be most attracted to the Valley. These clusters include the following: • Healthcare & Life Science: Health care providers, biotechnology, scientific research and testing activities, manufacturing of medical products and devices, and medicine and pharmaceutical products. • Clean Technology and Energy: Solar energy, renewable energy systems coincide with the goals of several cities and the existing renewable energy sources like wind and geothermal provide the valley with a leg up over many communities. • Supply Chain Management and Logistics: Technology services that manage and optimize the process of logistics for the distribution of products. • Creative Arts and Design: Museums and collections, performing arts, visual and photography, film, radio, TV, design and publishing, and schools and services. In addition, market assessments of local efforts in the Coachella Valley and other communities were reviewed to determine best practice efforts when crafting a regional strategic plan. From these research components came the Economic Blueprint Strategy with the following four goals and recommendations: • Regionalism: Fostering a strong sense among the valley communities that they are part of a larger economic and demographic whole through the promotion of a greater understanding of regional challenges and opportunities, link valley communities through regional programs, and advocate for issues of importance to valley constituencies. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2010-2011.doc Staff Report CVEP Contribution June 24, 2010 Page 3 of 4 Economic Diversification: Focus on programs and policies to make the valley competitive for high -wage jobs and investments through internal and external marketing programs, development of the business clusters, provided data collection and analysis for regional stakeholders, provide resources for entrepreneurs and small business and ensure the retention and expansion of existing valley businesses. Workforce Excellence: Expanding the number one competitive concern, the quality and capacity of the valley workforce, through the optimization of primary, secondary and higher education programs. Quality of Place: A longtime key to the valley's success must be maintained and developed through increased public services for residents, enhancement of the valley's arts and recreation amenities, support of housing options and supporting sustainable development patterns. The Blueprint is a strategy for the entire Coachella Valley that is a regionally focused, market -based, detailed strategy with a five-year business plan that is outlined in the Implementation Plan. This step involves how the strategy will be put into practice and includes specific benchmarks and measures assigned in a five-year priority action plan. Several of the benchmarks for the first year include: • Reposition and repurpose the regional economic development organization and create action committees to oversee specific Blueprint strategies. • Hire a dynamic, accomplished and seasoned CEO. • Create new marketing materials to promote attraction outside the valley. • Launch an internal marketing effort within the valley to build awareness of CVEP and its mission. • Develop and launch a small-business incubator and create a "clean and green" marketing program. • Provide city governments with data, assemble analysis and dissemination services. Market Street has recommended a budget range based on the implementation plan and benchmark schedule. The projected budget for the first year is estimated at $1.1 million, not including the current support for ongoing grant funded education programs. At full capacity by the fifth year, the annual budget is projected at $2.1 million. The ultimate funding for the Blueprint implementation will need to be a combination of public and private funding including grant sources, foundations, utilities, and individuals. Market Street has calculated projected performance gains for the valley based on the implementation of the Blueprint. Based on those projections the valley stands to gain a total of 16,255 net new jobs both in the business clusters and in indirect fields from 2012-2016. As CVEP continues to develop as an organization it will investigate various funding sources such as valley -wide assessments or business improvement districts in order to take the burden off of the cities. CVEP is looking for a one-year commitment of $100,000 and a commitment for City Council to review the yearly progress for the next four years during budget discussions. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2010-2011.doc Staff Report CVEP Contribution June 24, 2010 Page 4 of 4 Palm Desert currently plays a regional role in its support of the Convention and Visitors Authority, and its participation as an education hub for the Coachella Valley with both adding to the economics and quality of life for valley 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. Therefore, staff recommends the motion. Fiscal Analvsis Funding for the contribution will come from the Redevelopment Agency, and does not impact the General Fund. By participating in assisting to bring higher paying jobs to both Palm Desert and the valley will increase the quality of life for Palm Desert residents and increase sales which brings revenue to the General Fund. Submitted By: i1 4 -Rut Ann More, Economic Development Mgr. JI/', A/v�z__ Paul S. Gibson, Director of Finance / y VERIFIED BY 0 Original on file with City Clerk's Office * By Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2010-2011 fiscal budget and consider future funding at the appropriate time during the City's budget process next year - funds have been included in the proposed Financial Plan for 2010-20i1 Economic Development Dues, Account Mo. 850-4430-422-3630. 4-1 (Kelly MO) Approval: Jo h . Wohlmuth, Executive Director Department Head: ent G:\rda\Ruth Ann Moore\word data\STAFF REPORMUEP contribution 2010-2011.doc COACHELLA VALLEY Y May 14, 2010` " " D John Wolmuth, City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 Dear Mr. Wolmuth: On behalf of the Coachella Valley Economic Partnership, I would like to thank you for your past investment and active involvement in your regional economic development organization. We would also like to thank you for the opportunity to brief your Council on the Coachella Valley Economic Blueprint. As you know, this was a result of the year long effort with all the cities, county and regional stakeholders participating and supporting financially. Now that the analysis and planning is complete, we set our sights on the tasks ahead; diversifying the economy and attracting new, high paying jobs to our Valley. Our goals are ambitious, but our resolve is steadfast. Together we can make this a reality. We must think and act differently in the months and years ahead if -we are to realize the successes that are within our reach. We know that these are tough economic times; we understand the choices that cities, small businesses and individuals must make, but now is the time. We have the strategies in place, the opportunities before us and the momentum to make this happen. Your investment, and I do mean investment, will pay dividends in the future of our Valley. We will raise the per capita income, create new jobs, create a demand for housing and retail, and as a result, tax revenues will increase, development fees that support infrastructure projects will come in and discretionary spending will create retail and commercial opportunities. These are all long term dividends on your investment. Aside from the short term dividends that your investment creates in the form of direct scholarships for our Valley youth, over $1.4 million in our valley last year and $129,500 in Palm Desert last year alone, we offer the opportunity for a long term dividend on your investment. We need your leadership and commitment. Without it, we cannot succeed. Specifically, we are asking that the City of Palm Desert commit to an annual investment of $100,000 in the FY 2010-2011 budget. Understanding that the City cannot commit to future budgets, we would also request that this same amount be included as a line item in budget discussions for the following four [4] for a total five year "pledge". Sincerely, Wesley Ahlgren Director 73-710 FRED WARING DRIVE, SUITE 106 - PALM DESERT, CALIFORNIA 92260 • PH: 760.340,1575 - FX: 760,340.9212 • WWW.CVEP.COM