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Home My WebLink AboutDRAFT cc memo 05-02-13 re Econ Dev Priorities for 2013 2014 Funding 04 26 13 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Economic Development Council (EDC) Brit Fontenot, Director of Economic Development SUBJECT: Economic Development Priorities & Funding Requests as submitted in the Economic Development FY14 Budget Request MEETING DATE: May 13, 2013 AGENDA ITEM TYPE: Action (as part of the FY14 Budget Presentations) RECOMMENDATION: Consider the recommendations from the Economic Development Council and the Director of Economic Development on priorities for the City of Bozeman for funded economic development initiatives as proposed in the FY14 budget request (ATTACHMENT 1). BACKGROUND: Each item addressed below has the opportunity, on its own, to increase the impact of the City’s economic development program and further the Commissions priorities of job creation and industry diversification. However, the EDC recognizes that funding for all recommended increases in programming and activities may not be practical. The Commission is urged to consider the following prioritization for those areas which the EDC believe will have the opportunity for the most direct positive impacts to the local economy and on local businesses and the highest potential return on the investment of the City’s limited economic development resources. Overarching Strategies: As clarified in Goal #1 of the City of Bozeman’s 2009 Economic Development Plan (EDP): Support the expansion and retention of existing businesses and economic [sectors] that will continue to strengthen and diversify the economy and create higher paying jobs in Bozeman; and Compete effectively when corporate owners, executives, and site selectors have targeted Bozeman as a potential location for their business base or expansion site. Measures of Success: Percent increase & actual job growth measured annually; Salary data on newly created and total overall jobs; and Percent increase & actual employee data for all businesses and targeted industry sectors. Priorities are presented in their respective rank order: Economic Development Specialist – 1.0 FTE Rationale: Actively supports Goal # 5 of the City of Bozeman Economic Development Plan: Create a more collaborative and effective working partnership between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and economic growth; While the City has made tremendous strides in improving its reputation toward becoming “business friendly”, the efforts need to be continual and broadened to meet the scope and demand that is required to continue to remove barriers and improve efficiencies. The primary catalyst for making this happen is dedicated resources to build effective business relationships and to maintain consistency and continuity when executing the economic development plan and initiatives; and Timeliness requires resources. We have seen significant improvement in time to market with new projects introduced to the City; and anecdotal comments are favorable regarding interactions with the City Manager’s Economic Development Team (EDT). The EDC believes that adding additional capacity by 1.0 FTE will render positive results beyond the cost of investment. Approximate Annual Expenditure: $70,000 Sector Development (ATTACHMENT 2) Rationale: Support and enhance economic growth of industry sectors that are experiencing or generating local and expansion opportunities, i.e. photonics/optics and the outdoor industry, and leverage the synergistic relationships for collaborative benefit; Supports Goal # 1 of the City’s Economic Development Plan, and specifically addresses the need to support and promote entrepreneurial efforts linked to emerging markets, high technology, and research and development; and Supports enhanced relationships with MSU and the collective impact of shared mission and initiatives. Approximate Annual Expenditure: $15,000 Create EDC Marketing Collaborative Rationale: Realize a ‘collective impact’ through leveraged marketing initiatives of local and regionally sponsored campaigns that share the same target markets of businesses seeking to come to Bozeman and the surrounding region; Develop a collaborative marketing strategy and branding effort, sharing resources for leveraged media buys, creative development cost efficiencies, and greater overall exposure and impact; and Allocate resources to address the marketing content gaps that currently exist, primarily a shared media library for images, videos, creative content, that can be shared among collaborative partners including the City, Yellowstone Country, TBID, Chamber, CVB, Downtown Bozeman Partnership, etc. along with the development of a plan for joint marketing, communications, and brand strategy. Approximate Annual Expenditure: $25,000 Establish an Economic Development Incentive Fund April 15, 2013 City Commission Policy Meeting, RE: Economic Development Incentives (video link) Rationale: Generates a level of commitment to economic development by dedicating resources specifically for economic development purposes; While the EDC recognizes the importance of establishing an economic development incentive program, general consensus is that there are numerous federal, state, and local programs already in existence that can provide incentive opportunities for businesses. The EDC recommends that a good starting point for Bozeman would be to allocate a finite amount to be set aside on an annual basis to develop a fund that can build into a more fully defined and robust incentive program with specific parameters and performance indicators; and In support of Goal # 4 of the City of Bozeman Economic Development Plan – to leverage local, state, and federal economic development resources to enhance economic growth in Bozeman – the EDC recommends that education about the existing programs would be most beneficial at this time, and that through funding the additional FTE position as noted in Priority I. above, this would help Bozeman expand those educational opportunities to help businesses take full advantage of the incentives that already exist. Approximate Annual Expenditure: $25,000 Allocate Resources for North Park Project Rationale: Supports Goal # 2 of the City’s economic development plan – to maintain and upgrade infrastructure to support the current and future needs of business; and Allocation of resources will help fill the gap or provide choice for manufacturing or industrial businesses that identify specific location needs conducive to the North Park model. Additionally, if completed, the North Park project complements the MSU Innovation Campus efforts by providing additional alternatives for companies that may not meet the criteria for the Innovation Campus, but should be enticed to locate or expand in Bozeman; and Completion of the North Park preliminary engineering report (PER) accomplishes the work necessary to position the City-owned portion of the North Park property for sale or development. Approximate Expenditure: $20,000 Provide Continued Funding Support to Gallatin College (ATTACHMENT 3) Rationale: Supports Goal # 3 of the City of Bozeman Economic Development Plan – to support education and workforce development initiatives to provide Bozeman with the qualified workers to meet the needs of business; and Allocation of resources will help encourage Gallatin College to develop and maintain continuing education and certification programs for high-demand jobs. Approximate Expenditure: $125,000 UNRESOLVED ISSUES: Unresolved issues include the Commissions desire to increase economic development resources, programs and activities. If the Commission is desirous of increasing economic development resources, programs and activities: To what level and what are the desired sources of funding to support proposed increases? ALTERNA TIVES: As directed by the Commission. FISCAL EFFECTS: The fiscal effects of increased funding to support increased economic development resources, programs and activities on the City’s budget are undetermined at this time. Should the Commission allocate additional financial resources to fund proposed increases to economic development resources, programs and activities, this increase will likely have effects on either the General Fund or local tax rates. Report compiled on: April 29, 2013 Attachments: FY 14 Budget Proposal; NRMEDD sector development proposal (photonics/optics and the outdoor industry); and FY 14 Gallatin College funding request.