HomeMy WebLinkAbout10/20/1999 - STAFF REPORTS (5) DATE: October 20, 1999
TO: City CouncH
FROM: Director of Economic Development
APPROVE AND ADOPT THE 1999 RECOMMENDATIONS FOR POLICIES AND
PROGRAMS UNDER THE BUSINESS RETENTION AND EXPANSION PROGRAM.
RECOMMENDATION:
That City Council approve and adopt the 1999 Recommendations for Policies and Programs as
part of the Economic Development Department's strategic work plan,under the Business
Retention and Expansion Program(BREP).
BACKGROUND:
The 1999 Business Retention and Expansion Program(BREP)Report was presented to City
Council at the September 29 Study Session by Kay Hazen,BREP Chairwoman, and George
Wyatt,Director of the Department of Economic Development. The power point presentation
highlighted key survey results and five recommendations for policies and programs to enhance the
business climate in Palm Springs. At the conclusion of the BREP presentation,the Council asked
for more time to review the recommendations. Staff was asked to bring the matter back to the
City Council at its next regular meeting.
The recommendations consist of programs that are both local and regional. The budget to
implement the recommendations includes both city and non-city funding sources. The costs to
implement the 1999 Recommendations are significantly different from prior years. The department
has incorporated its local marketing strategy into one of the recommendations and is requesting a
sustained budget commitment for at least three years.
The 1996 BREP Recommendations adopted by the City Council cost$26,417 to fully implement
them. As a result of funding limitations, the 1996 Recommendations were reviewed and changed,
and in some cases, were discontinued. Essentially, only staff time was allocated to carry out the
tasks of the recommendations. However, other ways were found to fund some of the programs.
Fiscal year 1999/99, staff applied for and received grant funding from the Riverside County
Economic Development Agency(EDA), under its Business Visitation Program. The Department
utilized $24,000 to pay for all costs associated with the 1999 BREP Study. Additionally,the
BREP Committee secured business sponsorships to pay for the quarterly Business Council
luncheon meetings held during the past two years.
The City Council is being asked to adopt the 1999 Recommendations for Policies and Programs
and agree,in principal,to provide the necessary funding for the local marketing program for at
least the next three years. In general, funding for the recommendations will come from three
sources: 1)City, 2) Grants and 3)Private contributions. Although the County recently approved
the City's second Business Visitation grant application for$40,000, to implement BREP,this
source of gram funds may not be available in future years. Private contributions are also
unpredictable.
The following section describes each recommendation,the objective and tasks to implement the
recommendation and budget impact.
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Recommendation 917 Business Retention and Expansion Outreach Program -Provide public and
private resource assistance and information.
The tasks associated with this recommendation are to: 1)continue the outreach effort to
communicate and assist businesses with issues and/or concerns; 2)send a welcome letter from
the entire City Council to new and renewal businesses; 3)notify business owners about relevant
workshops and seminars; 4)act as an ombudsman and positive link between the business
community and City Hall; and 5)continue to develop resource contacts that benefit local
businesses;and place,for distribution purposes, a brochure rack continuing business resource
information on the business license counter.
There is no additional budget needed for implementing this recommendation. The tasks are
incorporated in stairs daily work activity and do not require additional program money.
Recommendation#2: Commercial/Industrial Development-Work with real estate brokers,
developers, property owners and businesses to increase available commerciaLlindustrial building
space.
There is currently a shortage of commercial/industrial space with more than 10,000 square feet
available for businesses to expand or relocate into in Palm Springs. The department would also
like to continue providing information about available properties and development opportunities
in Palm Springs.
The tasks are to: 1)monitor, track and assist the businesses that reported they had plans to
relocate and/or expand, and wanted follow-up contact from the Department; 2)continue to work
with the real estate community and property owners to update the commercial/industrial inventory
listings in a printed format and incorporate a web-site link allowing brokers to update their
listings, keeping information current; and 3)to conduct a feasibility study to analyze and identify
the opportunity for the development of additional spec industrial/commercial buildings.
There is no additional budget needed for implementing this recommendation. Staffs follow-up
and compiling listing data is part of the department's annual budget. The cost to update two
editions of the printed inventory listings and developing the web-site link will be paid for under
the Riverside County Business Visitation Grant. The cost for a feasibility study will be paid for
through the department's program budget.
Recommendation#3: Workforce Development-Collect data and identify the basic elements of
the region's workforce,i.e., current and future trade skills needs, growth trends,wages and
employment by sector.
The tasks are to: 1)continue employers response(red)teams in conjunction with the Workforce
Development Center partners; 2)work with the Coachella Valley Economic Partnership and other
valley cities to implement a labor skill needs assessment with employers across the valley;
and 3)engage a qualified consultant to perform a regional labor market analysis.
The budget impact for implementing this recommendation will be the cost of participating in the
regional labor market analysis. The red team meetings and associated activities are part of the
department's annual budget. The valley wide labor skills assessment will be paid for through the
Riverside County Business Visitation Grant.
Recommendation#47 Economic Development/Local Marketing- Establish an intensive, focused
three-year funded marketing effort to attract new clean industry and support existing
industrial/commercial businesses.
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The tasks are to: 1) implement local and regional marketing programs that position Palm Springs
as a progressive business friendly city and as a"good business address"; 2)implement a proactive
campaign that builds on the theme: Come for Pleasure, Stay for Business; 3)place a two-page
editorial in Palm Springs Life, October 1999 issue(already done),including reprints for attraction
activities, develop and print a brochure and participate in the Riverside County EDA Kiosk
system; 4) participate in regional economic development programs with the Coachella Valley
Economic Partnership(CVEP),Inland Empire Economic Partnership(IEEP), and the County of
Riverside Economic Development Agency(FDA); and 5)conduct a thorough review of the
City's business policies and practices and identify areas for improvement.
The budget impact for implementing this recommendation will be the cost of the local marketing
program, in the range of$65,000 per year.
Recommendation#5: Expanded Business Retention and Expansion Survey-to expand the BREP
survey process to other business sectors---professionals(accounting, engineering,banking,
medical)and larger employers(supermarkets, hotels, retailers).
The tasks are to: 1)develop a new survey instrument that can be used for all industry sectors; 2)
target 250 businesses and conduct face-to face interviews; and 3)develop a report based on the
survey results with short-and long-term recommendations. Staff will work with other resource
groups,including the Chamber of Commerce and Downtown Development Center to develop the
survey,conduct the interviews and analyze the survey findings to complete a comprehensive
report.
There is no additional budget needed to implement this recommendation. This recommendation
will be paid for through the Riverside County Business Visitation Grant.
Conclusion
The 1999 Recommendations reinforce the commitment of the Department of Economic
Development to support local businesses. The recommendations address current concerns and
issues expressed by the businesses interviewed. The recommendations are designed to support
the department's economic development activities that bring new businesses to town, retain
existing businesses and create new jobs. The recommendations incorporate the department's daily
work activity and include specific short-and long-term programs.
These recommendations represent the foundation for continuing to grow a healthy, diverse
economy for the City of Palm Springs. The retention and expansion of existing businesses
represents our core economic development efforts. We ask that the Council adopt the 1999
Recommendations and collectively commit the resources necessary to make these
recommendations a reality. No additional resources are being requested at this time by this
action. A request for dit' nal Ending will come at a later date.
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APPROVED: '
CITY AGER
ATTACBMENTS: Proposed Resolution
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RESOLUTION NO. 19669
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS,CALIFORNIA,APPROVING THE 1999
BUSINESS RETENTION AND EXPANSION
PROGRAM(BREP)RECOMMENDATIONS FOR
POLICIES AND PROGRAMS FOR THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
WIIEREAS,the City Council reviewed and adopted eleven recommendations from the 1996
BREP Report;and
WHEREAS,the City Council took an active role in implementing the 1996 program
recommendations; and
WHEREAS, on October 6, 1999 the City Council reviewed the 1999 BREP Report, including the
five recommendations included in the report;and
WHEREAS, the City Council expressed its interest in formally adopting the five
recommendations included in the 1999 BREP Report.
NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Palm Springs as
follows:
Section 1. That the five recommendations included in the 1999 Recommendations for
Policies and Programs under the Business Retention and Expansion
Program are hereby approved as follows: 1)Provide public and private
resource assistance and information; 2)Work with real estate brokers,
developers, property owners and businesses to increase available
commercial/industrial building space;3)Collect data and identify the basic
elements of the region's workforce, i.e., current and future trade skills
needs,growth trends, wages and employment by sector,4)Establish an
intensive, focused three-year funded marketing effort to attract new clean
industry and support existing industrial/commercial businesses; and 5)
Expand the BREP survey process to other business sectors-professionals
and larger employers.
Section 2. That Recommendations 1, 2, and 5 can be implemented within funds
available in the Economic Development Department 1999-2000 fiscal year
budget.
Section 3. . That Recommendations 3 and 4 will be implemented upon additional funds
being appropriated by the City Council for this purpose.
ADOPTED this 20th day of October 1999
AYES: Members Barnes, Hodges, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT: Member Oden
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED&APPROVED
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