HomeMy WebLinkAbout2015-04-14 - AGENDA REPORTS - SCVEDC FUNDING CONTINUED (2)Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENTCALENDAR
CI -AZ AIA
CITY MANAGER APPROVAL:
DATE: April 14, 2015
SUBJECT: RENEWAL OF SUPPORT FOR SANTA CLARITA VALLEY
ECONOMIC DEVELOPMENT CORPORATION (SCVEDC) TO
CONTINUE FUNDING FOR THREE YEARS
DEPARTMENT: Community Development
PRESENTER: Jason Crawford
RECOMMENDED ACTION
City Council:
1. Authorize expenditures for the renewal of support for the Santa Clarita Valley Economic
Development Corporation (SCVEDC) from the Economic Development budget (Account
Number 11301-5171.005), for three consecutive fiscal years (FY 2015/2016, FY 2016/201 7�
and FY 2017/2018), in the amount of $200,000 annually.
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 FY 2010/2011 investment of
$200,000, and on May 8, 2012, approved the FY 2011/2012 investment of $200,000. On
April 9, 2013� the City Council approved the investment of $200,000 for the next three
consecutive years (FY 2012/2013, FY 2013/2014, and FY 2014/2015).
In the five years since the SCVEDC was formed, the SCVEDC has helped over 275 companies,
attracting over 10,000 jobs to the Santa Clarita Valley. At the City Council meeting on
January 27, 2015, a presentation was given by Holly Schroeder, the SCVEDC President & CEO,
and Don Fleming, the co-chairman of the SCVEDC, outlining the SCVEDC's accomplishments
in 2014 and their goals for 2015.
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In 2014, the SCVEDC provided assistance to over 100 companies and, through business
attraction and expansion efforts, attracted or retained 69 businesses and 1,000 jobs in the Santa
Clarita Valley (SCV). Major attraction efforts included the relocation of Sunkist's corporate
headquarters to the SCV, which represents 50,000 square feet of positive absorption in off -ice
space, further reducing SCV's vacancy rate and adding an estimated 200jobs. The SCVEDC
also assisted Samsung, who selected Santa Clarita as the location for a new research and
development lab. Additionally, California Resources Corporation is establishing a 20,000
square -foot production and technology center in the Valencia Corporate Park with the assistance
of the SCVEDC, adding 38jobs.
Furthermore, in 2014 the SCVEDC worked with the City and Los Angeles County (County) in
a final effort to market the SCV Enterprise Zone and ensure that companies eligible for the
Enterprise Zone credit received as many benefits as possible. The SCVEDC held Multiple
workshops to get the word out before the conclusion of the program on December 3 1, 2014�
and assisted an additional 16 companies with voucher credits for I 77jobs.
The SCVEDC has identified the IbIlowing among their goals for 2015 business attraction and
retention and expansion efforts:
• Make contact with at least 300 target companies in the Los Angeles & Ventura County
regions, focusing on areas within 50 miles of the SCV;
• Contact target companies with leases expiring in the upcoming 30 months in the Los
Angeles & Vent , ura County regions, focusing on areas within 50 miles of the SCV;
• Provide client follow-up with community information and location comparisons;
• Provide assistance and help facilitate relocation transactions;
• Conduct Business Expansion & Retention (BEAR) assistance/survey visits with the
largest regional employers;
• Conduct business visits with the Santa Clarita Valley Chamber of Commerce (Chamber)
and Valley Industry Association (VIA), surveying at least 50 companies-, and
• Identify retention leads by contacting SCV businesses with upcoming lease expirations.
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. This is an effective public/private partnership.
The expectation continues to be 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, County,
Chamber, VIA, and College.of the Canyons, as well as the commercial real estate professionals
involved in economic development efforts in the SCV. Additionally, the expectation is that the
City will obtain a return on its investment that is greater than the annual commitments through
the matching commitments and leveraging of public and private dollars.
ALTERNATIVE ACTION
Other actions as determined by City Council.
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FISCAL IMPACT
Upon City Council approval of the recommended action, $200,000 will be included in the budget
(Account Number 11301-5171.005) for three consecutive fiscal years (FY 2015/2016� FY
2016/2017, and FY 2017/2018). The total amount will be paid upon successful annual updates
to City Council, pursuant to the terms of the agreement.
ATTACHMENTS
SCVEDC 1 2015-2020 Draft Agreement
SCVEDC Request for Contract Extension
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Agreement between the City of Santa Clarita and the
Santa Clarita Valley Economic Development Corporation
Contract No.
1. Purpose. Pursuant to the direction of the Santa Clarita City Council on April 14, 2015, the
City of Santa Clarita ("City"), a municipal corporation, will provide the Santa Clarita Valley
Economic Development Corporation ("SCVEDC"), a 501(c)(3) corporation, an investment in the
amount up to $200,000 annually for three consecutive fiscal years (FY 2015/2016, FY 2016/2017�
and FY 2017/2018).
11. Restrictions. This renewal of financial investment in the SCVEDC will be provided as
follows:
0 $200,000 upon full execution of this document for FY 2015/2016
0 The Economic Development Corporation will provide the City Council with an 2
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annual update on accomplishments during a regularly -scheduled City Council W
Meeting. The annual update should take place,during the first quarter of every
calendar year during the term of this agreement. LU
0 $200,000 upon successful annual update to City Council each year (FY 2016/2017,
FY 2017/2018)
0 The City reserves the right to terminate the agreement if the annual performance
update is deemed unsatisfactory by City Council.
111. Appointment. The SCVEDC agrees and the City hereby accepts a position as a Director on
the SCVEDC Board of Directors and a member of the SCVEDC Executive Committee. The
position may be filled by the City Manager, or in the City Manager's absence, the designee of the
City Manager.
IV. Term. This support is a pledge of a three-year commitment of investment in the following
amounts: $200,000 annually for three consecutive fiscal years (FY 2015/2016, FY 2016/2017,
and FY 2017/2018).
V. Indemnification. SCVEDC agrees to indemnify and hold City harmless from and against any
claim, action, damages, costs (including, without limitation, attorney's fees), injuries, or liability,
arising out of the performance of this Agreement by SCVEDC. Should City be named in any suit,
or should any claim be brought against it by suit or otherwise, arising out of performance by
SCVEDC ofservices rendered pursuant to this Agreement, SCVEDC will defend City (at City
request and with counsel satisfactory to City) and will indemnify City for any judgment rendered
against it or any sums paid out in settlement or costs incurred in defense otherwise.
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IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year
first hereinabove written.
FOR SANTA CLARITA VALLEY ECONOMIC DEVELOPMENT CORPORATION:
By:
Print Name & Title
Date:
FOR CITY OF SANTA CLARITA:
KENNETH W. STRIPLIN, CITY MANAGER
By:
City Manager
Date:
ATTEST:
By:
City Clerk
Date:
APPROVED AS TO FORM:
JOE MONTES, CITY ATTORNEY
By:
City Attorney
Date:
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SANTA CLARITA VALLEY
F(-.ONOMIC DEVELOPMENT ('.ORPORATI()N
March 13, 2015
Mr. Ken Striplin
City Manager, City of Santa Clarita
23920 Valencia Blvd.
Santa Clarita, CA 91355
Dear Ken,
in the five years since the Santa Clarita Valley Economic Development Corporation was formed, SCVEDC
has helped over 275 companies, attracting over 10,000jobs to the Santa Clarita Valley. in the short time
SCVEDC has existed, it has become a vital community resource, actively working to chart a course for the
future prosperity of the Santa Clarita Valley.
SCVEDC focuses on four priorities:
1) Business Attraction, particularly to attract our target business clusters of Aerospace & Defense,
Medical Devices, Advanced Manufacturing, Information Technology, and Digital Media &
Entertainment. We also seek Corporate HQ and the profession services firm needed to service
our business community.
2) Business Retention, to identify local opportunities for expansion and to identify at -risk
companies.
3) Community Marketing, to help business leaders inside the Valley and beyond understand why
the Santa Clarita Valley is Still GoldenO.
4) Economic Information, to provide our leaders with the information they need to make decisions
for future success of their businesses and for our Valley.
As a partnership between the City of Santa Clarita, the County of Los Angeles, local business leaders, and
the College of the Canyons, SCVEDC is positioned to serve as the single point of contact to help
businesses access incentives and resources that help them be globally competitive. This structure is
uniquely designed to make us the most effective organization we can be.
We respectfully request that the City of Santa Clarita renew its support for SCVEDC by authorizing
$200,000 annually for the next three years. These funds are matched by an equal amount from the
County of Los Angeles and are currently exceeded by private sector contributions. If desired, we will
continue to provide an annual report on accomplishments to the City Council.
Thank you for your consideration.
Sincerely,
Don Fleming Calvin Hedman
SCVEDC Co -Chair SCVEDC Co -Chair
26455 Rockwell Canyon Road I University Center, Suite 263 1 Santa Clarita, CA 91355
Phone (661) 2BB-4400 I Fax (661) 288-4414 1 www.scvedc.org Packet
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