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HomeMy WebLinkAbout185-16 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 185-16 File Number: 2016-0405 FAYETTEVILLE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT CONSULTING SERVICES: A RESOLUTION TO APPROVE A TWO (2) YEAR CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE AMOUNT OF $360,000.00, AND TO APPROVE A BUDGET ADJUSTMENT. WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $45,000.00 per quarter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached two (2) year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $360,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on 10/4/2016 Approved: J Page 1 w-r�-RC rrr�r,��}��n,e Gi • G``[ Y u� � rtj.[1 �I Y i :FAYETTEVILLE: Attest: f •rrrr FjI� ; i0` ,fit Sondra E. Smith, City Clerk Treasurer Printed on 1015116 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 wa"4 (479) 575-8323 Text File File Number: 2016-0405 Agenda Date: 10/4/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 8 FAYETTEVILLE CHAMBER OF COMMERCE ECONOMIC DEVELOPMENT CONSULTING SERVICES: A RESOLUTION TO APPROVE A TWO (2) YEAR CONTRACT WITH THE FAYETTEVILLE CHAMBER OF COMMERCE TO PROVIDE ECONOMIC DEVELOPMENT CONSULTING SERVICES IN THE AREAS OF BUSINESS RECRUITMENT, RETENTION, AND EXPANSION IN THE AMOUNT OF $360,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Fayetteville Chamber of Commerce was competitively selected by a City selection committee to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $45,000.00 per quarter. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached two (2) year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services to the City of Fayetteville in the areas of business recruitment, retention, and expansion in the amount of $360,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. City of Fayetteville, Arkansas Page 1 Printed on 101512016 Jeremy Pate Submitted By City of Fayetteville Staff Review Form 2016-0405 Legistar File ID 10/4/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/12/2016 Development Services / Development Services Department Submitted Date Division / Department Action Recommendation: A resolution to approve a contract with the Fayetteville Chamber of Commerce for Economic Development Services - Business Recruitment, Retention and Expansion, and approving a budget adjustment Budget Impact: 1010.050.0500-5315.00 General Fund Account Number Fund Contract Services Project Number Project Title Budgeted Item? No Current Budget $ Funds Obligated $ - Current Balance Does item have a cost? Yes Item Cost $ 360,000.00 Budget Adjustment Attached? Yes Budget Adjustment $ 360,000.00 Remaining Budget V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: CITY OF 81 TFay • e ARKANSAS MEETING OF OCTOBER 04, 2016 TO: Mayor Lioneld Jordan Fayetteville City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Jeremy Pate, Development Services Director DATE: September 12, 2016 SUBJECT: RFP 16-05 Economic Development Contract for Services — Business Recruitment, Retention and Expansion RECOMMENDATION: Staff recommends the selection of and a two-year contract with the Fayetteville Chamber of Commerce to provide economic development consulting services related to Business Recruitment, Retention and Expansion. BACKGROUND: In May of this year, the Council Unanimously adopted Fayetteville First, the City's newly updated Economic Development Strategic Plan. This plan engaged over 1600 citizens and businesses to structure the City's economic future. Fayetteville First gives policy direction for the City to achieve its stated goals, along with an implementation plan as a roadmap. The Implementation Plan is a fluid, dynamic document placing more tangible timeframes and action items to be accomplished over the next five years. Establishing the economic delivery service model was identified as one of our first steps, and staff is following the adopted strategy of a three -pronged approach: 1) Contract Business Recruitment, Retention and Expansion Services, 2) Contract Entrepreneurship and Innovation Services and 3) Create an internal Economic Development program to provide a city contact and to lead efforts in coordinating all efforts related to recruiting, retaining and supporting business, industry, and startup efforts in the City. The City issued RFP 16-05 on July 06 and received proposals on July 29. After interviewing the selected candidate, the selection committee (including Council Member Adella Gray) recommended entering into negotiations with the Fayetteville Chamber of Commerce to provide the requested services. DISCUSSION: A critical component of Fayetteville's economic development future was confirmed with the Fayetteville First Strategic Plan, that we must have a robust retention and expansion program focused on legacy industry, regional headquarters and startups; that in the retail sector, gaps exists in Fayetteville that need to be inventoried, analyzed and for which a focused strategy developed; that workforce training and education remains a high priority and need for the City and Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 region; and that future development opportunities should create an environment that attracts the new millennial workforce and business owner, given the diversity of the workforce today. Given these tasks, the Chamber of Commerce brings a wealth of experience and relationships in the City and region, having performed the City's economic development services since 2009 and having conducted business in Fayetteville for over 127 years. This new contract continues some of those same functions, while focusing efforts identified in Fayetteville First. The City continues to have a need for a point of contact with AEDC; maintaining a database of property, data and building availability for targeted business sectors; a proven method of using survey instruments and interviews to gauge the needs and hurdles for legacy industries, businesses that are headquartered here, and startup/entrepreneurial companies that have growth, location or other challenges; and a coordinated central point for workforce and training needs for all business sectors. In addition, we have asked the Chamber to focus efforts more into identifying gaps that need attention, supporting programs and initiatives that improve the outstanding lifestyle quality, and fostering development opportunities consistent with the City's adopted goals and policies. BUDGET/STAFF IMPACT: The proposed contract is for a two-year period, with an option to renew (with City Council approval) for three additional two-year periods. The terms of the contract are included, and the amount of the contract is $180,000 per year. Staff proposes a budget adjustment to cover the contract term of two years from the use of Fund Balance. Attachments: Proposed Contract and Attachments Budget Adjustment CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE WHEREAS, the City of Fayetteville, Arkansas wishes to contract for Economic Development Consulting Services, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce wishes to provide certain Economic Development Consulting Services to the City of Fayetteville, Arkansas, and; WHEREAS, the Fayetteville, Arkansas Chamber of Commerce has been selected to perform Economic Development Consulting Services for the City of Fayetteville utilizing the competitive Request for Proposal selection process (via RFP 16-05, Economic Development Consulting Services — Business Retention and Expansion), and; WHEREAS, the City Council of Fayetteville, Arkansas has approved a contract for Economic Development Consulting Services with the Fayetteville, Arkansas Chamber of Commerce, NOW THEREFORE: In consideration of the mutual promises contained in this Agreement and other good and valuable consideration, 1. Agreement is made this _' day of , 2016 by and between the City of Fayetteville, Arkansas located at 113 W. Mountain, Fayetteville, Arkansas 72701 and the Fayetteville, Arkansas Chamber of Commerce located at 21 West Mountain Street, Suite 300, Fayetteville, Arkansas 72701. Term: This Agreement shall be for a two year period, for a term ending September 30, 2018. This contract may be canceled by either party with thirty days written notice. 2. Renewals: This agreement may only be renewed by approval of the City Council and with mutual agreement of the Chamber of Commerce. The City may exercise an option to renew the contract for three (3) additional two (2) year terms with approval of both parties. 3. Attachments: The Contract documents which comprise the contract between the City of Fayetteville and the Fayetteville Chamber of Commerce consist of this Contract and the following documents attached hereto, and made a part hereof: Economic Development Consulting Services Contract Page 1 of 4 a.) Exhibit A - Schedule Detail for Deliverables and Performance Measures * The City of Fayetteville shall coordinate with the Fayetteville Chamber of Commerce for modifications to this schedule. Any modifications to Exhibit A shall not reduce the quality or quantity of the services to be provided pursuant to this contract, as determined by the Mayor or his/her designee. Any modifications shall be agreed upon by both the City and Fayetteville Chamber of Commerce; however, any changes affecting price shall have prior approval by the Fayetteville City Council. In the event Exhibit A is revised and price is not modified, such revised document shall be provided to the City Council at the next regularly scheduled update. 4. Services to be Provided: During the terms of this Agreement, the Fayetteville Chamber of Commerce shall: • Serve as the first point of contact as the City's contractor for Business Retention and Expansion services for economic development as defined in the Fayetteville First Economic Development Strategic Plan and maintain good relations with the Arkansas Economic Development Commission and other economic development partners locally, nationally and internationally; • Maintain clear and open communication with the City on all economic development services and activities provided under the scope of this contract; and clearly articulate when communicating on behalf of the Chamber of Commerce versus City - contracted initiatives to create clear accountability; • Provide all deliverables and performance measures outlined in the attached Exhibit A 5. Fees and Expenses: The City of Fayetteville agrees the consulting fee shall be paid upon invoice as follows: Consultation Services shall be invoiced for each quarter in the amount of $45,000 per quarter. Total fees for consultation services shall not exceed $360,000, from the date of contract. The Fayetteville Chamber of Commerce shall track, log and report hours and expenses directly related to this Agreement along with invoice for payment for each month. Invoices shall be itemized. 6. Notices: Any notice required to be given under this Agreement to either party to the other shall be sufficient if addressed and mailed, certified mail, postage paid, delivery, fax (receipt confirmed), or overnight courier. 7. Applicable Law: This Agreement shall be governed by and construed in accord with the laws of the State of Arkansas. 8. Entire Agreement: This Agreement sets forth the entire agreement and understanding between the parties on the subject matter of this Agreement. Neither party shall be bound by any conditions, definitions, representations or warranties with Economic Development Consulting Services Contract Page 2 of 4 respect to the subject matter of this Agreement other than those as expressly provided herein. 9. Amendments and Waivers: Changes, modifications, or amendments in cost or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in cost or fees. No modification of this Agreement shall be binding unless made in writing and executed by both parties. No waiver by either party or any breach or obligation of the other party under this Agreement shall constitute a waiver of any other prior or subsequent breach or obligation. 10. Performance Measures: The Fayetteville Chamber of Commerce shall provide the deliverables as outlined in the attached Exhibit A, which serves to implement the adopted Fayetteville First Economic Development Strategic Plan. Performance measures are included for each item and will be used to evaluate the work performed throughout the entire term of the contract. 11. Contract Administration: The Mayor or his/her Designated Representative shall be the Contract Administrator for this contract. The Fayetteville Chamber of Commerce President and CEO or his/her Designated Representative shall be the primary contact for all matters pertaining to this contract. While it is understood that many facts pertaining to projects must be held in the strictest confidence, the Fayetteville Chamber of Commerce President and CEO will insure that the Mayor is kept abreast of details and progress made pertaining to Economic Development prospects considering development in Fayetteville to the greatest extent possible. 12. Freedom of Information Act: City contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, the Fayetteville Chamber of Commerce will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.), exempting those records that, "if disclosed would give advantage to competitors or bidders," as described in Section (b)(9)(A) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. Economic Development Consulting Services Contract Page 3 of 4 IN WITNESS WHEREOF, the parties have executed this Agreement. Fayetteville Chamber of Commerce By: J. Steueji Clark, President and CEO Witness: The City Ifa,� Attest: Arkansas Sondra E. Smith, City Clerk/Treasurer Economic Development Consulting Services Contract Page 4 of 4 Date: 1 T Date: Date: t Date: /7-7 �D gty ��•'��•` ,1TYp,$' .E'Ay 17EI�ILLE*�' NSA` `•,'a . Exhibit "A" Contract for Economic Development Services - Business Retention and Expansion Schedule of Deliverables and Performance Measures As outlined herein, the Chamber of Commerce shall provide the following services, more generally referred to as Business Retention and Expansion or BR&E services: One. Create a robust retention and expansion program for the business community, with a more focused strategy for the target sectors of legacy industry, regional headquarters and startup/entrepreneurial businesses; Two. Determine property availability, data and building needs for targeted business sectors; Three. Develop a focused retail development strategy based on a thorough inventory and analysis of the city's existing retail base and gaps; Four. Coordinate with NWA Council and others to ensure workforce and training needs can be met, with a thorough understanding of existing and future industry and targeted sector needs; coordinate with area educational providers and business sectors to ensure appropriate skilled trade programs and training are available; Five. Support programs and initiatives that improve the outstanding lifestyle quality in Fayetteville. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Six. ` Collaborate with the City for communication with the public Seven. Report Outcomes One: Create a robust business retention and expansion BR&L program 1. At a minimum the following deliverables shall be included for each of the action items identified in the BR&E program: a. Goals for the number of businesses to be visited each year within the identified business sectors, coordinating closely with the Northwest Arkansas Council so as to not duplicate regional economic development services and business visits related to employer retention and expansion, workforce development and education efforts. The city expects at least 100 businesses to be visited through the contract period, based on employment numbers, sales impact, relationship to target sectors, or other criteria. b. The development of a survey or questionnaire to be used during interviews with existing businesses with results tabulated in a regularly updated and shared reporting document c. The development of a process for addressing any business needs or challenges that were identified during the visit and survey; d. Use of a shared spreadsheet for timely tracking of visits, employer input, business challenges or needs, and other data identified as needed for tracking purposes; e. A summary report of the accomplishments of the program that year, including the information above, as well as the number of new expansion projects, jobs created or saved, average wages (when disclosed) and investment related to the program(s); f. Demonstrate efforts to acquire and track the following: i. An increased number of businesses established in the city over time; ii. An increase in annual sales from businesses located in the city over time; iii. An increase in the percentage of residents employed over time; iv. A decrease in the unemployment rate of residents over time; and v. Various business sector employee wages, and how they increase or decrease as jobs are gained/lost. 2. Legacy Industry: Develop and maintain an up-to-date directory of legacy industries (including but not limited to manufacturers) within the City. Develop a BR&E program with questions and data designed to meet this business sector's needs, exploring questions related to facility retention and expansion, new equipment investment, workforce attraction and training, and physical infrastructure needs such as rail, broadband, transportation or utilities. Regional Headquarters: Develop and maintain an up-to-date directory of businesses headquartered in Fayetteville, whether they maintain a home office or a regional headquarters within the City. Develop a questionnaire to explore the corporate services sector, including healthcare, to develop good working relationships with local management teams and to identify and establish relationships with parent headquarters outside of Fayetteville when deemed valuable. 4. Start-up/Entrepreneurial Businesses: Develop a BR&E program for interviewing and gathering data for the start-up/entrepreneurial business sector. Customize questions to understand how the City can best support the creation and sustaining of start-up companies created in Fayetteville, coordinating closely with other City -initiated entrepreneurial efforts. Support the advertising of appropriate seminars or training for Fayetteville or NWA in coordination with other City -initiated entrepreneurial efforts. Two: Assess and meet property, building and data needs of targeted business sectors Fayetteville First identifies five targeted business sectors: Corporate Services, Entrepreneurs and Innovators, Legacy Manufactures, Retail and Specialized Technologies. Each of these target sectors will have varying needs, and some will have similarities. 1. Determine available properties. Create a comprehensive inventory of all sites and buildings that are available for potential development and ensure that the AEDC sites and buildings database are kept updated accordingly. 2. Assess site and building needs of targeted business sectors. Assess the potential site, building, and data needs of each of the targeted sectors, determine the need to identify additional sites and encourage the development of appropriate property in the future. Consideration must be given to match a company's requirements to the types of service available, which shall be assessed using measurable criteria through the BR&E surveys. Three: Develop a focused retail development strategy Conduct a thorough inventory and analysis of Fayetteville's existing retail base and gaps. Working with the Northwest Arkansas Council and/or others, identify and inventory the existing retail base and gaps in the city. Examine local and regional demographic and retail trends. Demonstrate a clear understanding of the demographics of the city and region (to include Fort Smith as well as Northwest Arkansas), evaluating typical factors considered by the retail sector in its location decisions, which often include population, population growth, educational attainment and income. A retail infographic deliverable, coordinated with the City's Communications and Marketing team, shall reflect the results of this analysis and be used to market Fayetteville and the region to potential retailers and retail developers, with the goal of filling identified gaps. Identify potential commercial properties. Identify potential commercial properties, large to small, to be mapped and marketed to potential retailers and retail developers, where appropriate as identified through the retail analysis. Potential redevelopment sites that may be appropriate for retail shall also be identified and catalogued, particularly in targeted redevelopment areas identified by the City. 4. Identify potential retail targets. Based on the outcome of the retail base and gap analysis, as well as the commercial property inventory, identify potential specialty retailers to focus marketing efforts. 5. Attend the designated International Council of Shopping Centers (ICSC) national and/or Regional conventions and participate with the City of Fayetteville representatives and regional economic development efforts at the National and Regional ICSC Show. Coordinate with the Mayor's designated staff to determine who should attend the ICSC convention or an applicable regional event, arrange for interviews, and coordinate with the City's Marketing and Communications team to provide marketing or information materials. Four: Ensure Workforce and Trainlne needs can be met 1. Understand existing industry and targeted business sector needs. Review and participate in workforce analysis studies conducting for the region to gain an understanding of the workforce availability related to the occupations required of the targeted business sectors, potentially partnering with the NWA Council on this initiative. 2. Research and conduct a survey of regional higher educational institutions. Develop an understanding of enrollment, degrees offered and graduates of regional institutions of higher education that may serve Fayetteville. 3. Convene regional educational leadership. Coordinate with the Northwest Arkansas Council to participate in discussions with local institutions of higher education, public school career and technical education program leaders, as well as local industry and targeted sectors, and determine whether the workforce and training needs of the identified target markets can be met. Work with these institutions to expand skilled trade programs and training, and determine possible new program development in the future to meet the needs of the targeted business sectors and existing business and industry. Once established, create and measure performance standards to fill gaps in the workforce and training needed. Five: Support initiatives andprograms that continue to improve the outstanding lifestyle quality in Fa.yettev lle 1. Explore redevelopment opportunities. During the stakeholder engagement process, many mentioned that they would like to see redevelopment along 71B (College Avenue and South School Avenue). In line with the CityPlan 2030 goals to prioritize infill over sprawl, to accommodate growth, and to bring more people to live, shop and play along Fayetteville's original Main Street, redevelopment of 71B is important for the city and should include improvement in walkability, new retail, residential and business development. Initiate a process to create immediate, short- and long-term priorities to explore and encourage redevelopment opportunities along 71B, as well as other areas of the city that should be identified as priorities for redevelopment. 2. Attract and retain the workforce of today and tomorrow. With the presence of the U of A and the lifestyle quality the city offers, Fayetteville should be a prime location for the millennial population, as well as the future Generation Z, and attracting and retaining that population must be a focus related to talent. Maintaining and enhancing an authentic culture for its residents and student population to remain in the city requires coordination in many of the identified focus areas. Walkable neighborhoods with commercial areas, including urban mixed -use developments, diversity, transportation alternatives and amenities like arts, culture and restaurant choices appear in numerous studies identifying where millennials want to be. Care for the environment and the desire to live in communities that practice sustainable development are also prevalent. The Chamber of Commerce will collaborate with and support the City and other City -led entrepreneurial efforts in the creation of a millennial advisory panel that can recommend policies, education and development practices that provide the best quality of life amenities and environment for this diverse population. 3. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Work with the development community and City to explore initiatives meeting these stated goals. Six: Collaborate with the City for Communication with the Public The City's Economic Development web site will be used to communicate the implementation of the Fayetteville First plan, using the City's branding and marketing. All communication and engagement with the business community via surveys and questionnaires will be done from a link within the City's Economic Development web site pages and will be promoted on the City's social media channels via coordination with the City's Communications and Marketing Team. All performance measures and reports will be updated on a regular basis via the City's web site. The Chamber of Commerce will work with the City's Communications and Marketing Team to ensure that the deliverables from this contract remain up to date on the City's Economic Development web site. Responses to requests for information and updates shall be timely and within reason. 2. Communications from the Chamber of Commerce related to economic development initiatives within the scope of this contract, major decisions and/or development matters, and public -facing activities should be coordinated with the Mayor's office or his assigned staff. This includes statements at City Council meetings, Agenda Sessions, public presentations, press conferences, etc. Seven: Reports and Presentations 1. Reporting results and milestones will be done as deliverables are met in the implementation of the Fayetteville First Economic Development Strategic Plan and will be formatted to fit within the City's Economic Development branding on the city web site. The City's internal Economic Development team will meet regularly with the Chamber of Commerce (at a minimum on a monthly basis) to discuss the status of deliverables. The Mayor and/or City Council may request periodic updates and public engagement for citizens to be kept informed of the city's economic development goals. 2. The Chamber of Commerce shall provide written reports and prepare a brief presentation to the Mayor and City Council on at least a bi-annual basis. Reports and presentations should outline the tasks accomplished, outcomes achieved and include statistics for each performance measure outlined herein. 3. A schedule for completion of outlined performance measures and a monthly status report shall be submitted for each month of the contract, delivered during regular monthly meetings with the City's internal team. •:Y^ "a. t. } � s `n7a r sl '�'c .h„ CREATE AN EFFECTIVE ECONOMIC DELIVERY SYSTEM ECONOMIC DELIVERY SYSTEM 1 58 There are various ways as to how a city can organize its delivery system for its economic development efforts What is most important is that there is a clear direction on which entities are responsible for the various functions and that there is accountability for those functions. In the case of Fayetteville, regionalism is also a critical factor related to the activities of the Northwest Arkansas Council, Economic development does not result from the efforts or actions of any single person, organization or institution, but rather through collective energies of multiple entities working together in partnerships toward consistent and mutually acknowledged objectives. In the benchmark locations reviewed as part of this process, which included Asheville, North Carolina; Boulder, Colorado; Chapel Hill, North Carolina; Fort Collins, Colorado; and Lawrence, Kansas; most of the city economic development departments, except one, Chapel Hill, have at least one dedicated staff member providing economic development services with the majority having two or three, and one, Asheville, having nine staff, many of which are focused specifically on economic development issues. CURRENT STRUCTURE Economic development services in the City of Fayetteville are currently managed at the city level. The Development Services Department, which is the city's planning arm, manages the contract for economic development services. The Fayetteville Chamber of Commerce was contracted for business recruitment and retention services beginning in 2009 at a cost of $165,000 per year. The Office of Sustainability was created in 2007 to partner with city divisions to promote and incorporate ecological practices into city projects and planning." The Fayetteville Visitor's Bureau promotes tourism in Fayetteville. The Fayetteville Advertising and Promotion Commission was created in 1977 with the passage of the Hotel/Motel/Restaurant Tax in the city, which it administers today The Northwest Arkansas Council is a private, non-profit organization that undertakes regional issues important to the growth of the regional economy. The Council is the regional economic development organization lead. Those economic development leads appropriate for Fayetteville are directed to the Chamber for follow-up and response. As previously referenced, the City of Fayetteville contracts with the Chamber for business recruitment and retention services. The Council also provides funding assistance to the Chamber to support existing industry. GENERAL OBSERVATIONS OF CURRENT ECONOMIC DEVELOPMENT DELIVERY SYSTEM Accountability is more important than ever in the economic development arena in order for organizations to create the environment of trust and respect that is critical to fulfilling their leadership role. Specific, realistic, and quantifiable metrics, such as increases in jobs, investment, and average wages, should be put in place related to Fayetteville's economic development efforts to measure success of business recruitment and expansion activities. These metrics will focus on results, rather than process, and provide a true barometer of performance. • Entrepreneurship and innovation present a significant opportunity for Fayetteville. There is not currently an organized economic development effort focused on this area, and this must be addressed by working with all of the parties currently involved in this area in Fayetteville. • Arts and culture is another area that needs focus in Fayetteville. There is a need for at least one economic development position at the city that coordinates for all services. There may also eventually need to be a position at the city that focuses on entrepreneurship/innovation, ECONOMIC DELIVERY SYSTEM 1 59 ECONOMIC DEVELOPMENT DELIVERY SYSTEM RECOMMENDATION Three functions of an economic development program are recommended moving forward: 1. Business Recruitment Services 2. Business Retention & Expansion (BRE) Services 3_ Entrepreneurial/Startup Support Services " Business recruitment and BRE services are two of the most critical components of economic development today and entrepreneurial/startup support services is a growing area of focus of an economic development program, and a significant opportunity for Fayetteville as previously noted. Responsibilities for each of these functions would need to be clearly defined. The city must ensure that each of these functions are properly addressed and that performance metrics are put in place to measure effectiveness of delivery of each role. Based on this, there should be two delivery system options: 1. The city can issue an RFP(s) to contract out these three services to one or more entities. 2. If the city does not get adequate or strength of responses in one or more of these areas, create a comprehensive economic development program at the City of Fayetteville to address these services. Regardless of the delivery system option put in place, there should be at least one new position created at the city that may be called the Director of Economic Vitality that coordinates all services, giving specific attention to entrepreneurship/innovation, and there may eventually need to be another new position at the city that focuses specifically on entrepreneurship/ innovation that may be called the Director of Innovation. Specific performance metrics will be developed related to each of the three services and delivered separately from this document. City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number DEVELOPMENT SERVICES (620) /Org2 2016 Requestor: Jeremy Pate BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: $360,000 is requested in the Economic Development Services account. These funds will be used for a 2 -year contract, billed quarterly at a rate of $15,000, with the Fayetteville Chamber of Commerce. The funds are being requested from the Use of Fund Balance. RESOLUTION/ORDINANCE COUNCIL DATE: LEGISTAR FILE ID#: 10/4/2016 2016-0405 13 athaara, re.UU 9/12/2016 4:05 PM Budget Director TYPE: DESCRIPTION: GLDATE: POSTED: Date TOTAL 360,000 360,000 v.20160722 Increase / (Decrease) Pro1ect.Sub# Account Number Expense Revenue Project Sub AT Account Name 1010.050.0500-5315.00 360,000 - EX Contract Services -: 1010.001.0001-4999.99 - 360,000 RE Use Fund Balance - Current C:\Users\Ismith\AppData\Roaming\L5\Temp\0ec822d6-4144-4ff9-9e0a-f936116420a1 1 of 1 esA 1s5Io FAYETTEVILLE CHAMBER OF COMMERCE City of Fayetteville Staff Review Form 2017-0764 Legistar File ID N/A City Council Meeting Date-Agenda Item Only N/A for Non-Agenda Item Devin Howland 12/18/2017 ECONOMIC DEVELOPMENT(050) Submitted By Submitted Date Division/Department Action Recommendation: MAYOR JORDAN'S SIGNATURE IS NEED ON THE CONTRACT UPDATE FOR THE FAYETTEVILLE CHAMBER OF COMMERCE. Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? No Current Budget $ - Funds Obligated $ - Current Balance $ - Does item have a cost? No Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget $ - V20140710 Previous Ordinance or Resolution# 185-16 Original Contract Number: Approval Date:' ia-A H 7 Comments: CITY OF 0101 -1 _FAYETTEVILLE STAFF. MEMO ARKANSAS TO: Lioneld Jordan, Mayor THRU: Don Marr, Chief of Staff FROM: Devin Howland, Director of Economic Vitality DATE: December 18, 2017 SUBJECT: Fayetteville Chamber of Commerce Contract Update RECOMMENDATION: Mayor Jordan's signature is needed on the amendment to the contract for economic development consulting services between the City of Fayetteville and the Fayetteville Chamber of Commerce. DISCUSSION: The Department of Economic Vitality met with the Fayetteville Chamber of Commerce to discuss several revisions to the contract which would assist in fostering increased collaboration between the City and the Fayetteville Chamber of Commerce. The amendment revises the performance measures of the contract to align with the Department of Economic Vitality's performance measures set forth in the 2018 budget. The amendment also adds weekly conference calls between the City and the Fayetteville Chamber of Commerce, as well as an additional quarterly collaboration meeting between the City and all other economic development consulting partners. Attachments: Amendment No. 1 TO THE CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE. Exhibit A: Revised Schedule of Deliverables and Performance Measures Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville,AR 72701 AMENDMENT NO. 1 TO THE CONTRACT FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND THE FAYETTEVILLE CHAMBER OF COMMERCE WHEREAS,on October 4, 2016, the City of Fayetteville, Arkansas ("City") and the Fayetteville Chamber of Commerce ("Chamber") entered into a contract for Economic Development Consulting Services (the "Contract")to be provided through September 30, 2018, and; WHEREAS, the parties desire to amend this agreement as set forth below. NOW, THEREFORE, BE IT KNOWN TO ALL: That the City and the Chamber,on this o// S1: day of OtelAsivr,2017,hereby agree: A. That the Schedule of Deliverables and Performance Measures referenced in Section 3(a) and the third bulleted paragraph of Section 4 of the original Contract shall be replaced by the Revised Schedule of Deliverables and Performance Measures attached to this Amendment as "Exhibit A" and incorporated herein. B. The parties agree and understand that this Amendment is supplemental to their Contract for Economic Development Consulting Services dated October 4, 2016, and that it does not alter, amend or abridge any of the rights, obligations, or duties of the parties not expressly addressed herein. IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by their authorized representative effective the date set forth herein above. FAYETTEVIL - HAM:ER OF COMMERCE ilb /1 / By: 1 Date: I ,2/ 45 / _ J. S 1 en Cla k, President and CEO / e Witness: Date: /3/1 l( , / 1 CITY OF" YETTEVILLE,ARKANSAS 2/- By�./i/i .. _ �.� Date: - ,�O/7 Lioneld Jord. ayor ATTEST: ALII-4/A-16t. &. 111/4,4& Date: 72-'21 -42-07 Sondra E. Smith, City Clerk-Treasurer ittiot. • • EI Fr: WERE ;> • . RKANS.•0J��� 2 Exhibit "A" Contract for Economic Development Services- ' Business Retention and Expansion REVISED Schedule of Deliverables and Performance Measures As outlined herein,the Chamber of Commerce shall provide the following services, more generally referred to as Business Retention and Expansion or BR&E services: One. Create a robust retention and expansion program for the business community,with a more focused strategy for the target sectors of legacy industry, regional headquarters and startup/entrepreneurial businesses; Two. Determine property availability, data and building needs for targeted business sectors; Three. Develop a focused retail development strategy based on a thorough inventory and analysis of the city's existing retail base and gaps; Four. Coordinate with NWA Council and others to ensure workforce and training needs can be met,with a thorough understanding of existing and future industry and targeted sector needs; coordinate with area educational providers and business sectors to ensure appropriate skilled trade programs and training are available; Five. Support programs and initiatives that improve the outstanding lifestyle quality in Fayetteville. Promote, foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Six. Collaborate with the City for communication with the public Seven. Report Outcomes • One:Create a robust business retention and expansion(BR&E)program 1. At a minimum the following deliverables shall be included for each of the action items identified in the BR&E program: a. Goals for the number of businesses to be visited each year within the identified business sectors, coordinating closely with the Northwest Arkansas Council so as to not duplicate regional economic development services and business visits related to employer retention and expansion, workforce development and education efforts.The city expects at least 100 businesses to be visited annually through the contract period, based on employment numbers, sales impact, relationship to target sectors, or other criteria. Annually, • 1 b. The development of a survey or questionnaire to be used during interviews with existing businesses with results tabulated in a regularly updated and shared reporting document c. The development of a process for addressing any business needs or challenges that were identified during the visit and survey; d. Use of a shared spreadsheet for timely tracking of visits, employer input, business challenges or needs, and other data identified as needed for tracking purposes; e. A summary report of the accomplishments of the program that year, including the information above, as well as the number of new expansion projects,jobs created or saved, average wages (when disclosed) and investment related to the program(s); f. Demonstrate efforts to acquire and track the following: i. An increased number of net new businesses established in the city over time; ii. An increase in annual sales from businesses located in the city over time; iii. An increase in the percentage of residents employed over time; iv. An increase in the number of net new jobs over time; v. A decrease in the unemployment rate of residents over time; vi. Various business sector employee wages, and how they increase or decrease as jobs are gained/lost. vii. An increase in the number of inquiries from prospective companies over time; and viii. An increase in net new retail and accommodation establishments over time. 2. Legacy Industry: Develop and maintain an up-to-date directory of legacy industries (including but not limited to manufacturers)within the City. Develop a BR&E program with questions and data designed to meet this business sector's needs, exploring questions related to facility retention and expansion, new equipment investment, workforce attraction and training, and physical infrastructure needs such as rail, broadband,transportation or utilities. • 3. Regional Headquarters: Develop and maintain an up-to-date directory of businesses headquartered in Fayetteville,whether they maintain a home office or a regional headquarters within the City. Develop a questionnaire to explore the corporate services sector, including healthcare,to develop good working relationships with local management teams and to identify and establish relationships with parent headquarters outside of Fayetteville when deemed valuable. 4. Start-up/Entrepreneurial Businesses: Work in partnership with the City's Entrepreneurship and Innovation contractor to develop a BR&E program for interviewing and gathering data for the start-up/entrepreneurial business sector. Customize questions to understand how the City can best support the creation and 2 sustaining of start-up companies created in Fayetteville, coordinating closely with other City-initiated entrepreneurial efforts. Support the advertising of appropriate seminars or training for Fayetteville or NWA in coordination with other City-initiated entrepreneurial efforts. Two:Assess and meet property,building and data needs of targeted business sectors Fayetteville First identifies five targeted business sectors:Corporate Services, Entrepreneurs and Innovators, Legacy Manufactures, Retail and Specialized Technologies. Each of these target sectors will have varying needs,and some will have similarities. 1. Determine available properties. Create a comprehensive inventory of all sites and buildings that are available for potential development and ensure that the AEDC sites and buildings database are kept updated accordingly. 2. Assess site and building needs of targeted business sectors. Assess the potential site, building, and data needs of each of the targeted sectors, determine the need to identify additional sites and encourage the development of appropriate property in the future. Consideration must be given to match a company's requirements to the types of service available, which shall be assessed using measurable criteria through the BR&E surveys. Three: Develop a focused retail development strategy. 1. Conduct a thorough inventory and analysis of Fayetteville's existing retail base and gaps. Working with the Northwest Arkansas Council and/or others, identify and inventory the existing retail base and gaps in the city. 2. Examine local and regional demographic and retail trends. Demonstrate a clear understanding of the demographics of the city and region (to include Fort Smith as well as Northwest Arkansas), evaluating typical factors considered by the retail sector in its location decisions, which often include population, population growth, educational attainment and income. A retail infographic deliverable, coordinated with the City's Communications and Marketing team, shall reflect the results of this analysis and be used to market Fayetteville and the region to potential retailers and retail developers, with the goal of filling identified gaps. 3. Identify potential commercial properties. Identify potential commercial properties, large to small,to be mapped and marketed to potential retailers and retail developers, where appropriate as identified through the retail analysis. Potential redevelopment sites that may be appropriate for retail shall also be identified and catalogued, particularly in targeted redevelopment areas identified by the City. • 3 4. Identify potential retail targets. Based on the outcome of the retail base and gap analysis, as well as the commercial property inventory, identify potential specialty retailers to focus marketing efforts. 5. Attend the designated International Council of Shopping Centers (ICSC)national and/or Regional conventions and participate with the City of Fayetteville representatives and regional economic development efforts at the National and Regional ICSC Show. Coordinate with the Mayor's designated staff to determine who should attend the ICSC convention or an applicable regional event, arrange for interviews, and coordinate with the City's Marketing and Communications team to provide marketing or information materials. Four: Ensure Workforce and Training needs can be met 1. Understand existing industry and targeted business sector needs. Review and participate in workforce analysis studies conducting for the region to gain an understanding of the workforce availability related to the occupations required of the targeted business sectors, potentially partnering with the NWA Council on this initiative. 2. Research and conduct a survey of regional higher educational institutions. Develop an understanding of enrollment, degrees offered and graduates of regional institutions of higher education that may serve Fayetteville. 3. Convene regional educational leadership. Coordinate with the Northwest Arkansas Council to participate in discussions with local institutions of higher education, public school career and technical education program leaders, as well as local industry and targeted sectors, and determine whether the workforce and training needs of the identified target markets can be met. Work with these institutions to expand skilled trade programs and training, and determine possible new program development in the future to meet the needs of the targeted business sectors and existing business and industry. Once established, create and measure performance standards to fill gaps in the workforce and training needed. Five:Support initiatives and programs that continue to improve the outstanding lifestyle. civalityin Fayetteville 1. Explore redevelopment opportunities. During the stakeholder engagement process, many mentioned that they would like to see redevelopment along 71B (College Avenue and South School Avenue). In line with the CityPlan 2030 goals to prioritize infill over sprawl,to accommodate growth, and to bring more people to live, shop and play along Fayetteville's original Main Street, redevelopment of 71B is important for the city and should include improvement in walkability, new retail, residential and business development. Initiate a process to create immediate, short- and long-term priorities to 4 explore and encourage redevelopment opportunities along 71B, as well as other areas of the city that should be identified as priorities for redevelopment. 2. Attract and retain the workforce of today and tomorrow. With the presence of the U of A and the lifestyle quality the city offers, Fayetteville should be a prime location for the millennial population, as well as the future Generation Z, and attracting and retaining that population must be a focus related to talent. Maintaining and enhancing an authentic culture for its residents and student population to remain in the city requires coordination in many of the identified focus areas. Walkable neighborhoods with commercial areas, including urban mixed-use developments, diversity,transportation alternatives and amenities like arts, culture and restaurant choices appear in numerous studies identifying where millennials want to be. Care for the environment and the desire to live in communities that practice sustainable development are also prevalent. The Chamber of Commerce will collaborate with and support the City and other City-led entrepreneurial efforts in the creation of a millennial advisory panel that can recommend policies, education and development practices that provide the best quality of life amenities and environment for this diverse.population. 3. Promote,foster, and seek development opportunities that help create an environment and amenities that attract the new millennial worker and/or business owners. Work with the development community and City to explore initiatives meeting these stated goals. Six: Collaborate with the City for Communication with the Public 1. The City's Economic Development web site will be used to communicate the implementation of the Fayetteville First plan, using the City's branding and marketing. All communication and engagement with the business community via surveys and questionnaires will be done from a link within the City's Economic Development web site pages and will be promoted on the City's social media channels via coordination with the City's Communications and Marketing Team. All performance measures and reports will be updated on a regular basis via the City's web site. The Chamber of Commerce will work with the City's Communications and Marketing Team to ensure that the deliverables from this contract remain up to date on the City's Economic Development web site. Responses to requests for information and updates shall be timely and within reason. 2. Communications from the Chamber of Commerce related to economic development initiatives within the scope of this contract, major decisions and/or development matters, and public-facing activities should be coordinated with the Mayor's office or his assigned staff. This includes statements at City Council meetings, Agenda Sessions, public presentations, press conferences, etc. 5 Seven: Reports and Presentations 1. Reporting results and milestones will be done as deliverables are met in the implementation of the Fayetteville First Economic Development Strategic Plan and will be formatted to fit within the City's Economic Development branding on the city web site. The City's internal Economic Development team will meet regularly with the Chamber of Commerce(at a minimum on a monthly basis)to discuss the status of deliverables. The Mayor and/or City Council may request periodic updates and public engagement for citizens to be kept informed of the city's economic development goals. The Fayetteville Chamber of Commerce will be expected to attend quarterly "collaboration meetings"with the City of Fayetteville and Entrepreneurship and Innovation contractor.The Fayetteville Chamber of Commerce will attend weekly conference calls with the Director of Economic Vitality. 2. The Chamber of Commerce shall provide written reports and prepare a brief presentation to the Mayor and City Council on at least a bi-annual basis. Reports and presentations should outline the tasks accomplished, outcomes achieved and include statistics for each performance measure outlined herein. 3. A schedule for completion of outlined performance measures and a monthly status report shall be submitted for each month of the contract, delivered during regular monthly meetings with the City's internal team. • 6