HomeMy WebLinkAbout2011-05-10 - AGENDA REPORTS - SCV ECONOMIC DEV CORP (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by:
May 10, 2011
Ken Pulskamp
RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY
ECONOMIC DEVELOPMENT CORPORATION (SCVEDC)
City Manager's Office
RECOMMENDED ACTION
1. City Council authorize expenditure of up to $200,000 from the Economic Development budget
(Account Number 11301-5171.005) for the renewal of support for the Santa Clarita Valley
Economic Development Corporation (SCVEDC).
2. Authorize the City Manager or his designee to negotiate and execute a renewal agreement with
the SCVEDC, subject to City Attorney approval.
BACKGROUND
On November 10, 2009, staff recommended that the City Council approve an agreement between
the City of Santa Clarita and the Santa Clarita Valley Economic Development Corporation
(SCVEDC) in the amount of $100,000 for initial start-up costs and creation of a local Economic
Development Corporation. The City Council approved the agreement and directed staff to
increase the initial financial contribution amount to $200,000 for first year start-up costs.
During the past year, the SCVEDC has hired an Executive Director; commissioned a target
industry analysis which confirmed our top target industries of aerospace, biomedical,
manufacturing, and film; installed the City Manager, Ken Pulskamp, on the SCVEDC executive
board of directors, and has held an economic outlook conference on April 28, 2011. In addition.
the SCVEDC participated with the City and the County in the successful application for a new
and expanded Santa Clarita Valley Enterprise Zone for the region. The SCVEDC raised funds
from private businesses to pay for the consultant who oversaw the Enterprise Zone application
PROV D
process. This new zone however remains in conditional designation status until the Governor's
final designation approval for the zone is granted at a date to be determined.
Moving forward, the expectations for the SCVEDC are to focus on business attraction with
tangible results during the current calendar year that show major businesses relocating to the
Santa Clarita Valley as a result of SCVEDC efforts. A major business relocation would be
defined as employers with 100 or more employees.
The FYI 0/11 investment from the City would be $200,000. The expectation is that the City will
get a return on this investment that is greater than the $200,000 through leveraging of public and
private dollars. Any future investment beyond FYI 0/11 would be contingent upon all terms and
conditions of the initial investment being met, future City priorities, the measurable successes of
the SCVEDC, and the amount. of public and private capital raised to support the organization.
The overall financial goal of the SCVEDC should be to continue to raise private capital so as to
decrease the amount of public capital and investment needed to support the organization.
The City of Santa Clarita currently spends approximately $1.6 million per fiscal year on
economic development activities, though in FY 09/10 that amount was increased significantly as
part of the 21 -Point Business Plan for Progress. The expectation is that the SCVEDC's efforts
would complement the City's efforts and not compete with the existing economic development
efforts and investment of the City, the County, the Chamber of Commerce, the Valley Industry
Association, the College of the Canyons as well as the commercial real estate professionals
involved in economic development efforts in the Santa Clarita Valley.
ALTERNATIVE ACTIONS
Other actions as determined by City Council
FISCAL IMPACT
Upon City Council approval of the recommended action, $200,000 that has been allocated in
FYI 0/11 budget be paid to the SCVEDC per terms of the agreement as detailed above.