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HomeMy WebLinkAbout2013-04-09 - AGENDA REPORTS - SCVEDC RENEWAL OF SUPPORT (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT CITY OF SANTA CLARIT, AGENDA REPORT City Manager Approval: Item to be presented by: April 9, 2013 Agenda Item: 3 RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION (SCVEDC) Community Development RECOMMENDED ACTION 1. City Council authorize expenditure for up to $200,000 annually from the Economic Development budget (Account number 11301-5171.005) for the renewal of support for the Santa Clarita Valley Economic Development Corporation (SCVEDC) for three consecutive years (FY 12/13,13/14, and 14/15). 2. Authorize the City Manager or his designee to negotiate and execute a three-year 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 (City) 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. On May 20, 2011, the City Council approved the FY10/11 investment of $200,000, and on May 8, 2012, approved the FYI 1/12 investment of $200,000. In 2012, the SCVEDC set a goal to attract six new businesses and bring 350 new jobs to Santa Clarita. The organization's actual performance in 2012 indicates that with their partners including the City, they have attracted over 22 businesses to the Santa Clarita Valley and retained over 2,500 jobs. At the City Council meeting on January 22, 2013, a presentation was given by Jonas Peterson, CEO of the SCVEDC, and Don Fleming and Calvin Hedman, the co-chairman of the SCVEDC Board of Directors, outlining the ambitious work plan the SCVEDC has in store for 2013. The SCVEDC has been working with the City and the County to market the SCV Enterprise Zone. The SCVEDC is on track to provide retention/expansion assistance to 25 businesses this year. It has currently organized a database of over 9,500 business leaders, and produced 45 new in-house publications, studies, and reports. The SCVEDC has achieved over $150,000 in media value with local and regional entities. The overall financial goal of the SCVEDC is to continue to raise private capital so as to decrease the amount of public capital investment needed to support the organization. By working through the SCVEDC, business and community leaders are supporting regional economic development. Each member of the SCVEDC Board is also an investor, sharing his or her time, financial support and leadership ability. Due to board member support, the SCVEDC was able to match every dollar received from the City with $4 from other sources. In an effort to increase funding from private sector investors, the SCVEDC is committed to growing the Board of Directors from its current 35 members. This year, 2013, the SCVEDC has instituted a "Drive for 50" campaign to achieve a full board of 50 members by the year's end. The County of Los Angeles funds the SCVEDC at an annual expenditure of $200,000, matching the support of the City. In addition to the annual $200,000 support, the County has also provided the SCVEDC with $40,000 in 2011 for Enterprise Zone marketing, $200,000 for SCVEDC'sjob grant program in 2012, and $90,000 for a specialized marketing campaign for the Santa Clarita Valley in 2013. The expectation is that the SCVEDC's efforts complement the City's efforts and do 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. Additionally, the expectation is that the City will obtain a return on this investment that is greater than the $200,000 annual commitment through the matching commitments and leveraging of public and private dollars. Any future investment, beyond this agreement, would be determined by the City Council and would be contingent upon the measurable successes of the SCVEDC, future City priorities, and the amount of public and private capital raised to support the organization. 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 the FY12/13 budget in account 11301-5171.005, and will be included in the proposed FY 13/14 and 14/15 budgets, be paid to the SCVEDC per terms of the agreement above.