HomeMy WebLinkAbout2012-05-08 - AGENDA REPORTS - SCVEDC RENEWAL OF SUPPORT (2)Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Ken Pulskamp
DATE: May 8, 2012
SUBJECT: RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY
ECONOMIC DEVELOPMENT CORPORATION (SCVEDC)
DEPARTMENT: 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, the City Council approved an agreement between the City of Santa
Clarita and the Santa Clarita Valley Economic Development Corporation (SCVEDC) in the
amount of $200,000 for initial start-up costs and creation of a local Economic Development
Corporation in FY 09/10. On May 1.0, 2011, the City Council approved the FY 10/11 investment
of $200,000 from the City to the EDC.
The EDC had requested that both the City of Santa Clarita and the County of Los Angeles
continue this level of funding for three years. The County committed to three years of financial
support of the EDC. This request, for $200,000 for FY 11/12, represents the third and final year
of that commitment from the City.
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. The overall financial goal of the
SCVEDC is to continue to raise private capital so as to decrease the amount of public capital and
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investment needed to support the organization, with public financial support decreasing as
private support increases.
Any future investment beyond FY 11/12 would be determined by the City Council and 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. .
During the first year, the SCVEDC hired an Executive Director; commissioned a target industry
analysis which confirmed our top target industries of aerospace, biomedical, manufacturing, and
film; installed City Manager, Ken Pulskamp, on the SCVEDC executive board of directors; and
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 process, and is currently
partnering with the City on the marketing of the program and outreach to local businesses to
encourage their participation.
According to the SCVEDC, since June 1, 2011, the SCVEDC has attracted or retained 10
businesses totaling 610 jobs for the Santa Clarita Valley. They have pitched relocation to over
350 companies and currently have 34 prospects that are actively evaluating the Santa Clarita
Valley. They created a 10 -page overview brochure, published a 50 -page Economic Development
magazine focused on the aerospace industry, held another economic outlook event earlier this
year and just partnered with the City to produce an event targeted to commercial real estate
brokers.
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. One of their self -identified goals for 2012 is
to attract or retain 31 businesses, creating or retaining 1,350 jobs for the Santa Clarita Valley.
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
FY 11/12 budget be paid to the SCVEDC per terms of the agreement as detailed above.
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