SPECIAL NOTICE REGARDING PUBLIC MEETINGS

Due to the risks to public health caused by the possible spread of the COVID-19 virus at public gatherings, the Maricopa Association of Governments has determined that public meetings will be indefinitely held through technological means. Meetings will be open to the public through technological means. In reliance on, and compliance with, the March 13, 2020, Opinion issued by Attorney General , the Maricopa Association of Governments provides this special advance notice of the technological means through which public meetings may be accessed. While this special notice is in effect, public comment at meetings will only be accepted through written submissions, which may or may not be read aloud during meetings.

To attend the meeting noticed below by technological means, members of the public may:

1. To watch a live video stream of the meeting, click here to go to MAG’s YouTube channel. 2. Members of the public may submit written comments relating to this meeting to azmag.gov/comment. Comments may be sent at any time leading up to the meeting, but must be received at least one hour prior to the posted start time for the meeting.

If any member of the public has difficulty connecting to the meeting, please contact MAG at (602) 254-6300 for support.

January 26, 2021

TO: Members of the MAG Economic Development Committee

FROM: Councilmember David Luna, City of Mesa, Chair

SUBJECT: MEETING NOTIFICATION AND TRANSMITTAL OF TENTATIVE AGENDA Tuesday, February 2, 2021 – 11:30 a.m. Virtual Meeting

The MAG Economic Development Committee meeting has been scheduled at the time noted above. The meeting will be held as a virtual meeting only, with no in-person attendance options available at this time. Instructions on how to participate will be provided via email to members of the committee. Members of the public will be able to view and listen to the meeting via a live video stream. You can watch the meeting online by clicking here to go to MAG’s YouTube channel. Public comments can be provided in written format through the MAG website at azmag.gov/comment. If you have questions, please contact the MAG office at (602) 254-6300.

In 1996, the Regional Council approved a simple majority quorum for all MAG advisory committees. If the Economic Development Committee does not meet the quorum requirement, members who have joined the meeting will be notified that a legal meeting cannot occur and the meeting will end. Your participation in the meeting is strongly encouraged.

Pursuant to Title II of the Americans with Disabilities Act (ADA), MAG does not discriminate on the basis of disability in admissions to or participation in its public meetings. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the MAG office. Requests should be made as early as possible to allow time to arrange the accommodation.

If you have any questions regarding the meeting, please contact MAG at (602) 254-6300.

Economic Development Committee – Tentative Agenda 1 February 2, 2021

MAG Economic Development Committee TENTATIVE AGENDA February 2, 2021

1. Call to Order

2. Call to the Audience

An opportunity will be provided to members of the public to provide input through written comment to the Economic Development Committee on items that are not on the agenda that are within the jurisdiction of MAG, or on items on the agenda for discussion but not for action. Members of the public are asked to submit written comments related to this meeting through the MAG website at azmag.gov/comment, and indicate for which meeting the comment is intended. Comments may be sent at any time leading up to the meeting, but must be received at least one hour prior to the posted start time for the meeting. Comments received prior to the deadline will be read aloud during the meeting. Comments must not exceed three minutes in length. A total of 15 minutes will be provided for the Call to the Audience agenda item, unless the Economic Development Committee requests an exception to this limit. Please note that comments received for agenda items posted for action will be read at the time the item is heard.

Action Requested: Information.

3. Approval of the December 1, 2020, Economic Development Committee Meeting Minutes

Action Requested: Approval.

Economic Development Committee – Tentative Agenda 2 February 2, 2021

4. Mesa CARES Small Business Technical Assistance

The City of Mesa is teaming up with several local nonprofits and business- support organizations to help small businesses impacted by the COVID-19 pandemic. The Mesa CARES Small Business Technical Assistance Program is a business assistance program made possible by the federal Coronavirus Relief Fund under the CARES Act. The program is intended to help Mesa- based businesses recover from the coronavirus pandemic, evaluate and react to necessary changes in the business environment, implement new policies, procedures and processes, stimulate new business, and strategize and plan for the future of their companies. As part of this program, Mesa partnered with Co+Hoots, a globally recognized co-working, incubator and accelerator, using the HUUB platform. Jaye O’Donnell, Assistant Economic Development Director for the City of Mesa, and Jenny Poon, Founder of Co+Hoots, will provide a report on the Mesa CARES Small Business Technical Assistance Program.

Action Requested: Information and discussion.

5. Hispanic Chamber of Commerce

The Arizona Hispanic Chamber of Commerce is the premier advocate for the state's Hispanic-owned businesses and more than 2 million Hispanic consumers. The Hispanic Chamber is dedicated to promoting the economic health and prosperity of the state. President & CEO Monica Villalobos will provide the committee with a report on the impacts of the pandemic on small businesses and how the Hispanic Chamber is providing assistance through various efforts. She will also discuss the Community Collaboration, a collective effort of Arizona minority chambers with other community partners, as well as a diversity and inclusion webinar series.

Action Requested: Information and discussion.

Economic Development Committee – Tentative Agenda 3 February 2, 2021

6. Arizona Thrives Initiative

Arizona Thrives was launched in 2018 and brings together diverse interests to identify and solve problems and support advancement of clean air, clean energy and a strong economy. This initiative has three phases: 1) build a framework, 2) create a path forward and 3) take action aligned with a set of principles and priority solutions. The focus of Arizona Thrives has been on addressing how we power the economy, how we move and how we live and work; as well as natural solutions. Patrick Graham, Interim Director for Arizona Thrives and recently retired Director of The Nature Conservancy, will provide a report on the Arizona Thrives initiative.

Action Requested: Information, discussion and possible action to recommend support for the Arizona Thrives Initiative.

7. Update on Proposition 400 Extension

An update will be provided on Prop 400 extension efforts, including the regional transportation plan process timeline and enabling legislation for the regional transportation sales tax. Nathan Pryor, MAG Policy and Government Relations Director, will provide this update.

Action Requested: Information and discussion.

8. Expansion of Arizona and New Mexico Border Zone Travel

Tourism is Arizona’s lifeblood. Every year, thousands of frequent, low‐risk, short‐term visitors travel from Mexico into Arizona to conduct business, visit family and friends, enjoy local attractions and shop at local stores— spending billions of dollars. Since 2013, MAG has pursued administrative and legislative solutions to increase economic opportunities and the number of Mexican tourists to our region and state. The federal spending bills recently passed by Congress included language encouraging the U.S. Customs and Border Protection to develop a pilot program so that Mexican visitors holding an official U.S. B1/B2 Visa, also known as “Border Crossing Card,” will no longer be limited to visiting 75 miles north from the border

Economic Development Committee – Tentative Agenda 4 February 2, 2021

and can visit all of Arizona and New Mexico. Nathan Pryor, MAG Policy and Government Relations Director, will provide an update on this initiative.

Action Requested: Information and discussion.

9. Request for Future Agenda Items

Topics or issues of interest that the Management Committee would like to have considered for discussion at a future meeting will be requested.

Action Requested: Information.

10. Comments from the Committee

An opportunity will be provided for the EDC members to present a brief summary of current events. The EDC is not allowed to propose, discuss, deliberate or take action at the meeting on any matter in the summary, unless the specific matter is properly noticed for legal action.

Action Requested: Information.

Adjournment

Economic Development Committee – Tentative Agenda 5 February 2, 2021

MINUTES OF THE MARICOPA ASSOCIATION OF GOVERNMENTS ECONOMIC DEVELOPMENT COMMITTEE December 1, 2020 Web Conference Meeting via Zoom

MEMBERS ATTENDING

#Mesa: Councilmember David Luna, *Gila River Indian Community: Chair Governor Stephen Roe Lewis #El Mirage: Mayor Alexis A. #Gilbert: Councilmember Scott Hermosillo, Vice Chair September *Achen-Gardner Construction: Daniel #Glendale: Vice Mayor Ray Malnar Spitza #Goodyear: Councilmember *Apache Junction: Councilmember Brannon Hampton Robin Barker *Greater Phoenix Chamber of *Arizona Christian University: Commerce: Todd Sanders James Griffiths #Greater Phoenix Economic Council: #Arizona Commerce Authority: Steven Betts Marisa Walker *Greater Phoenix Leadership, Inc.: #ADOT: Mark Sanders Neil Giuliano *: Angela #Maricopa: Vice Mayor Nancy Smith Creedon #Maricopa Board of Supervisors: #Arizona Trucking Association: Supervisor Jack Sellers Tony Bradley #MCCCD: Darcy Renfro *Avondale: Councilmember #NZ Legacy, LLC: Bob M. Worsley Mike Pineda *Peoria: Councilmember Jon Edwards #Career Technical Education District: #Phoenix: Vice Mayor Betty Guardado Superintendent Gregory Donovan #Queen Creek: Mayor Gail Barney #Carefree: Vice Mayor John Crane *Scottsdale: Councilmember #Chandler: Councilmember Terry Virginia Korte Roe *Tempe: Vice Mayor Randy Keating #East Valley Partnership: Paul # Tolleson: Mayor Anna Tovar Cardon #WESTMARC: Sintra Hoffman #El Dorado Holdings, Inc.: Jim Kenny #Youngtown: Mayor Michael LeVault

* Those members not present. # Attended by webinar/telephone conference.

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1. Call to Order

A quorum of the Economic Development Committee (EDC) was present. The EDC meeting was called to order by Chair Luna at 11:34 a.m.

2. Call to the Audience

An opportunity was provided to members of the public to provide input through written comment to the Economic Development Committee on items that are not on the agenda that are within the jurisdiction of MAG, or on items on the agenda for discussion but not for action. Members of the public were asked to submit written comments related to this meeting through the MAG website at azmag.gov/comment and indicate for which meeting the comment is intended. Comments may be sent at any time leading up to the meeting but must be received at least one hour prior to the posted start time for the meeting.

Chair Luna asked MAG staff if any public comment had been received.

A written comment was received by Walt Gray, a community activist from West Phoenix, on Agenda Item 4 which was read into the record by staff. Mr. Gray that stated that the Office of Economic Opportunity in the Arizona Commerce Authority also was responsible for the Returning Stronger earlier this year that provided opportunities for COVID-impacted persons to enroll free in online career and job training programs through Coursera, an internationally recognized education platform, and various educational institutions. The program, which ends Dec. 31, is supposed to be going through a review to determine if the program, which was funded by the educational institutions, should be continued with state support. It is very important that the program be continued and modified to provide opportunities in technical and paraprofessional jobs for the Inner-City working poor and poor. Government and Education Institutions at all levels--under both GOP and Dem administrations--have made the gross error on concentrating education on students and ignoring their parents. Their parents, assigned to historic planned poverty by corporate executives and fostered on government at all levels, deserve the opportunity to truly earn their way rather than having various business, government and nonprofit structures that prevent them from advancing. This may mean some modifications, such as socially distanced, in-person instruction for those not literate in technology. The cost is low compared to the very high transportation costs; unbalanced economic development, and generally unbalanced development used to achieve socioeconomic segregation

A second written comment was received by Walt Gray, a community activist from West Page 2 of 15

Phoenix, on Agenda Item 5 which was read into the record by staff. Mr. Gray stated that the computer model used to project land use, employment centers and traffic patterns basically has not been changed for 40 years, resulting in traffic using suburb- to-Downtown corridors that have to be constantly modified to accommodate more and more traffic. The result is continued traffic delays, high transportation costs, and lost family time. The computer model must be changed to provide a more diverse pattern of traffic and this must be matched with greater attention to using federal, state and local subsidies designated for new and expanding employers to locate a proportional number of jobs in the Inner City. Additionally, low-cost job training programs through online and community college education should be matched with the new prospective job opportunities. This not only will reduce commute times, but increase economic growth, reduce public assistance expenditures; improve family cohesion; reduce Inner City social ills; improve funding for schools, and a whole bunch of other good stuff.

A third written comment was received by Walt Gray, a community activist from West Phoenix, on Agenda Item 6 which was read into the record by staff. Mr. Gray stated that MAG has been slow to address housing largely because suburban mayors have long protected the land uses in their cities and towns with the idea of maintaining a middle class or higher standard of living. Thus, MAG does not have a Housing Policy Committee nor a Housing Technical Work Group. It's good to see the EDC address this issue, which is at a crisis level. However, it deserves the attention of a separate Policy Committee that can really delve into the issue and coordinate with other MAG Policy Committees, especially the EDC, the Continuum of Care (Homelessness) and the Human Services Initiatives Committee. This will mean expanding the MAG staff modestly, but much can be done because MAG has an outstanding social planning leadership staff in place. This staff now is underutilized as program administrators. It's time to consider Housing on a regional basis because we have seen how laissez faire planning has resulted in gross development imbalances. Addressing Housing as a regional issue also will tie in with addressing Homelessness on a regional basis as initiated with bipartisan support by the Phoenix City Council.

A fourth written comment was received by Walt Gray, a community activist from West Phoenix, on Agenda Item 7. Mr. Grey stated that the Webinar in March 2021 will be very important because it will be the first time these two trade organizations have met in nearly two years. In that time, the NAFTA trade agreement has been revised. At the same time, Gov. , a Republican, still leads Arizona state government and the State Legislature keeps its GOP majority after the November elections. Thus, existing policy, strengthened by GOP leadership in the NAFTA revision, likely will continue when there still seems to be plenty of room for dialogue and new ideas. Page 3 of 15

NAFTA clearly was not good for the working poor and poor in Mexico and the southwest U.S. NAFTA did not provide adequate economic opportunities among the working poor and poor on both sides of the Border, contributing to continued migration north; unbalanced economic development and wealth in both nations, and lost opportunities for greater mutual economic, political and social growth. The March 2021 Webinar should be open to the public so Arizona and Sonora residents have an opportunity to learn firsthand where the revised trade agreement is going.

3. Approval of the October 6, 2020, Economic Development Committee Meeting Minutes

Chair Luna asked members of the Committee if they had any changes or additions regarding the October 6, 2020 meeting minutes. There were none.

Chair Luna requested a motion to approve the October 6, 2020 meeting minutes. Steven Betts made a motion to approve the October 6, 2020 meeting minutes and Mayor Hermosillo seconded the motion.

Mayor Gail Barney, Steven Betts, Tony Bradley, Paul Cardon, Vice Mayor John Crane, Superintendent Gregory Donovan, Vice Mayor Betty Guardado, Councilmember Brannon Hampton, Mayor Alexis A. Hermosillo, Sintra Hoffman, Jim Kenny, Mayor Michael LeVault, Councilmember David Luna, Vice Mayor Ray Malnar, Darcy Renfro, Councilmember Terry Roe, Mark Sanders, Supervisor Jack Sellers, Councilmember Scott September, Vice Mayor Nancy Smith, Mayor Anna Tovar, Marisa Walker, and Bob Worsley voted in favor of the motion, and the motion carried unanimously.

4. Report from the Arizona Commerce Authority, Office of Economic Opportunity

Chair Luna introduced Kolu Wilson, Workforce Administrator for the Arizona Commerce Authority’s (ACA) Office of Economic Opportunity to discuss the mission of the workforce team and their strategic initiatives, including their critical partnership with Amazon Web Services, Inc. (AWS).

Ms. Wilson began the presentation by providing an overview of the Office of Economic Opportunity Workforce Team at ACA headed by Ms. Wilson herself. The team focuses their efforts on workforce policies, projects, strategic partnerships and investments. They also provide support to ACA’s Workforce Arizona Council, which provides strategic leadership and direction to ACA’s workforce system known as Arizona@Work. Arizona@Work consists of 12 local workforce areas, including the City of Phoenix, Maricopa County, and the 19 Tribal Nations. In addition, Ms. Wilson’s team works closely with the Business Attraction and Expansion teams at ACA to connect businesses

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to talent and development programs. They also collaborate with educators, job seekers, industry partners, and community leaders to facilitate meaningful talent and employer connections. Further, they create targeted training solutions for current and new employees to accelerate learning of specialized and necessary skills. Ms. Wilson explained that the team is very focused on building a stronger alignment with their college and university partnerships going into the new year, with a goal of increasing quality credential attainment and in-demand occupations in the state.

Ms. Wilson then explained the six State Workforce Development Programs under the Workforce Innovation and Opportunity Act, which fall under four titles. The first title is Workforce Development Activities that consists of adult, dislocated worker, and youth programs. The second is the Adult Education and Literacy Act Program. The third is the Wagner-Peyset Employment Services Program and the fourth is the vocational rehabilitation program. Within the workforce training programs, the team is looking specifically at demographics, including race, ethnicity, sex, and age to ensure they are targeting a diverse group of individuals across the state. They also work to ensure they are increasing the number of participants served by workforce development programs and the number of participants receiving and exiting career and training services, along with a number of other performance indicators.

Ms. Wilson then shared ACA’s annual report, which is a high-level summary of the impact of the workforce system in Arizona. Ms. Wilson emphasized the diversity of the workforce that ACA served in the past year. Overall, ACA served 80,563 total participants and 62,159 participants completed the Career and Training Services. They were able to identify 124,971 barriers to employment and 78 percent of businesses were satisfied with the services they received. Ms. Wilson noted that the current report was completed prior to COVID-19, so the impacts of COVID-19 would be displayed in the next program year annual report. In response to COVID-19, Ms. Wilson announced that ACA launched a Return Stronger program to target dislocated workers who were laid-off because of COVID-19. The virtual launch received over 92 million impressions and over 139,000 site visits. Since the virtual launch, 2,273 individuals have enrolled in Coursera and 436 individuals have received course certifications.

Ms. Wilson reemphasized that ACA’s workforce and talent strategy is very reliant on their college and university partners. In Arizona, there are 122 total universities and colleges that enroll over 490,000 students, and 222 high schools offer career and technical education programs. In addition to partnerships with educational facilities such as the Pima Community College District, ACA also works with a number of other leaders across diverse industries that are in high demand, such as Semiconductor

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Manufacturers and Suppliers. Ms. Wilson also discussed the Arizona Advanced Technology Network, which identifies the current and future needs of manufacturing companies across Phoenix and Tucson. The network is currently made up of five community colleges, but the hope is to expand the program statewide to all community colleges who are interested in joining.

Ms. Wilson then explained the Amazon Web Services: Cloud Computing Careers initiative that ACA recently launched in partnership with Amazon. The goal of the initiative is to train 5,000 individuals in cloud computing certificates by 2022. In Arizona, cloud computing is in the top ten of highest paying certifications, and there are over 95,100 unique job postings in the state requiring cloud computing skills. The Maricopa Community College District has been a huge partner in this initiative and already has four schools that are set up to offer training on cloud computing. Ms. Wilson noted that they are currently focusing on getting other community colleges and K-12 schools signed up, as well as identifying instructors that can become certified to teach the curriculum. There will also be outreach directed towards dislocated workers across the state.

To wrap up the presentation, Ms. Wilson shared information on ACA’s Arizona Career Readiness Program, which is focused on enhancing the labor pool by equipping and certifying job seekers with foundational academic, professional, and technical skills. The program was launched with support from the Governor’s Office as an online e-learning platform. Ms. Wilson welcomed questions from the Committee.

Chair Luna asked for questions or comments from the Committee.

Vice Mayor Guardado asked if there was a strategic vision for where the Cloud Computing Careers initiative will focus outreach to train and certify 5,000 students. Ms. Wilson explained that they are currently working with their college and university partners, as well as K-12 schools to create an outreach plan to students. They will also work to specifically target those who have lost jobs in the information technology sector, as well as leverage the job centers within the 12 local workforce areas to promote this opportunity.

Vice Mayor Guardado followed up with another question on how to ensure students from working class neighborhoods, such as Maryvale, will have access to and receive benefits from this program. Ms. Wilson explained that equity is at top of mind when it comes to this program, and ACA will work to leverage their partnerships that exist within those communities such as Maryvale. Ms. Wilson said they will also utilize their

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partnership with the Department of Education to develop their outreach strategy. Lastly, she mentioned working with Arizona State University Opportunities for Youth, an initiative concerned with engaging out-of-school youth with alternative learning opportunities and pathways.

Sintra Hoffman asked how ACA will work to provide information to parents on barriers to higher education and the importance of filling out the Free Application for Federal Student Aid (FAFSA). Ms. Wilson explained that they plan to bring someone on the team to specifically focus on youth development strategies. Ms. Wilson explained that they plan on developing strategies to mitigate the high unemployment rate between individuals aged 16-24. In addition, the Amazon Web Services program offers a dual enrollment opportunity and other credential opportunities.

Darcy Renfro noted that there has been a decrease in enrollment in Maricopa County community colleges since the start of COVID-19. She also noted that students who are enrolled part-time make up 78 percent of the student population enrolled in the Maricopa County Community College District. However, these students are missing out on resources as there are not programs set up to help students who are only part-time. Ms. Wilson noted that an area of opportunity could be in increasing work-based training capacities, so students can work and receive a post-secondary education simultaneously while receiving support from their employer.

Bob Worsley explained that he is working on an initiative to get a ballot measure before voters in 2022 to allow Deferred Action for Childhood Arrivals (DACA) students to receive in-state tuition at Arizona colleges and universities. As of right now, DACA students are unable to receive in-state tuition, which means many cannot afford to get a post-secondary education. He noted that DACA students not enrolling in college could be the reason why there has been a significant decrease in enrollment as Ms. Renfro noted.

With no other questions or comments, Chair Luna thanked Ms. Wilson for her presentation.

5. Update on the Development of a New Regional Transportation Plan

Chair Luna introduced Audra Koester Thomas, MAG’s Transportation Planning Program Manager, to provide an update on the planning work underway, including technical work associated with the development of the new Regional Transportation Plan (RTP) and activities associated with the Management Committee Work Group.

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Ms. Thomas began the presentation by providing history and context of transportation investments in the region. In 1985, the MAG region was one of the first regions in the country to establish a dedicated half-cent sales tax for transportation investments; that initiative had a horizon of 20 years and focused on needed freeway investment. She noted that without the transportation investments enabled by the half-cent sales tax, metropolitan Phoenix would not serve as the economic engine of the state. This transportation investment transformed the region into what it is and established the economic prosperity that the region enjoys today. Ms. Thomas noted that the establishment of the first half-cent sales tax in 1985 was intended to be followed by a second half-cent sales tax to be used for public transit investments. Ultimately, that initiative failed and was one of the reasons why the 2004 sales tax extension, known as Proposition 400, became a multimodal investment program, including light rail. Ms. Thomas noted that MAG facilitated an economic impact analysis earlier this year to evaluate how regional transportation projects to-date have contributed to economic development. Focusing on the freeway system alone, MAG calculated over $100 billion in time travel savings, equating to approximately 105 hours saved from traffic and a 25 percent reduction in average time travel annually. The analysis also found that a vast majority of jobs in Maricopa County are within two miles of a freeway or light rail corridor, and there is a tremendous amount of property value appreciation alongside transportation investments.

Ms. Thomas next discussed existing prop 400-era programs, including the Freeway Life Cycle Program, the Transit Life Cycle Program and the Arterial Life Cycle Program. Although over 95 percent of funding goes towards one of these three programs, there are other programs of notable importance as well, including Active Transportation, Safety and others. Ms. Thomas also noted that the Proposition 400 program is comprised of funding from sources other than half-cent sales tax. When the Regional Transportation Plan (RTP) was developed in 2003, all revenues available to the region were included. While the half-cent sales tax makes up a large proportion of funding, the program also relies on federal funds and local contributions to deliver its multimodal program. In fact, over 70 percent of funding to enable transit operations in the region comes directly from cities and towns. Ms. Thomas explained that it is important to acknowledge the composition of funding because of the large impact that the Great Recession had on the region and the program itself. Just looking at the half-cent sales tax alone, it is projected that there will be 40 percent less in revenue over the 20-year life span than originally planned. This means that some transportation projects will not be implemented as intended by the end of the 20-year program, in 2025.

In addition to the half-cent sales tax, the Highway User Revenue Fund (HURF), also Page 8 of 15

known as the state gas tax, is an important but diminishing revenue source. When adjusted for inflation, the amount of funding received from HURF in 2000 was greater than the amount received in 2019. Over that same 20-year span, there has been a 40 percent increase in the population of Arizona, which means roads are being used more but less is being contributed to their operation, maintenance let along their expansion. The HURF revenue source is also an important for towns, counties, and most notably, the Arizona Department of Transportation.

Ms. Thomas next explained that if there is no resolve to the insolvency of HURF, either by an increase in or modernization of the tax, it is expected there will be a cumulative revenue shortfall of more than $7 billion by 2049 to address expected maintenance needs for the freeway network in Maricopa County alone. An additional shortfall of about $7 billion has been estimated for maintenance and expansion needs of the local arterial and street roadway network. She indicated that these tremendous shortfalls mean difficult conversations ahead for regional policymakers. Across the country there are diminishing federal and state resources, putting more pressure on local and regional revenue sources to deliver needed transportation projects.

Ms. Thomas then shared the peer region analysis, which details how other regions across the nation have diversified their revenue portfolio to solve this ever-growing issue. While several regions were analyzed, the majority of analysis was focused on metropolitan regions west of the Mississippi River that are fast growing and have similar economies to the Phoenix metropolitan region, as well as Metropolitan Planning Organizations (MPOs) that include Valley Metro peer transit authorities. The key takeaway from the peer region analysis was that while MAG was one of the first regions to establish a half-cent sales tax to deliver transportation investments, other regions have copied and now surpassed MAG in amount of regional transportation investment. In terms of a per capita revenue source for transportation, MAG ranks one of the lowest among peers. For example, the North Central Texas Council of Governments (NCTCOG) has two half-cent sales taxes in addition to a full cent sales tax that is dedicated to transit. Likewise, the Southern California Association of Governments (SCAG) has four, half-cent sales taxes, which equate to a full two cents of sales tax for transportation. Alternatively, Metropolitan Council serving the Twin Cities in Minnesota has a 1.6 percent property tax to fund transit.

The comparison become more dramatic when looking only at dedicated transit funding. The MAG region has a single half-cent sales tax, of which only one third is dedicated to transit, equating to 0.17 cents. In the Austin, Texas region they have an established one cent sales tax for transit, but in November 2020 passed an 8.75 percent

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property tax, which will fund a $7 billion light rail program for the region. Austin had a second transportation initiative, a bond for bicycle and pedestrian improvements that also was successful on the same November 2020 ballot. Ms. Thomas reemphasized that the analysis revealed that peer regions are outpacing MAG in transportation investment with more robust regional funding sources and comparatively more significant state-generated revenues. She noted that in summary, as federal and state revenues decrease in value and erode in size, pressure will continue to increase on regional sources to deliver growing transportation needs.

Ms. Thomas next discussed where MAG is currently at in the RTP development process. MAG has established a vision to establish a sustainable, resilient, multimodal transportation investment program that connects people with opportunities to prosper and thrive. This vision will be accomplished through six goals: safety, mobility, prosperity, responsiveness, livability and preservation. Ms. Thomas also shared the RTP Performance-Based Evaluation Process, which is required by federal law and state statute. There are several steps in the process, including development of a needs catalog, which includes system needs, regionally studied investments, deferred Proposition 400 projects, and submissions from member agencies in the 2020 RTP call for projects. The first step in the process is a regional project screening to identify regionally significant projects. The second step includes a project-level evaluation, followed by a project/program review and validation in step three and a scenario planning and tradeoff analysis in step four. By summer 2021, a draft project and program portfolio will be developed. Ms. Thomas noted that the MAG region is in a non-attainment area for air quality, so everything must go through a model process to ensure the planned transportation investments meet air quality conformity targets, a process that will occur in the fall of 2021. Enabling legislation will begin in January 2022 and if all is successful, the transportation sales tax extension placed on the ballot for November 2022. Ms. Thomas also provided more detail on what is included in the full needs catalog. In addition to freeway and arterial roadways projects, MAG member agencies also submit requests for operations and maintenance needs such as pavement preservation, and programmatic investments such as safety and intelligent transportation systems.

Ms. Thomas focused the remainder of the presentation on public and stakeholder engagement, as voter support is necessary to continue transportation investment in the region. In August, the MOMENTUM webpage was launched to give the public the opportunity to provide early input into the planning process. Ms. Thomas asked the EDC members for their help and support in sharing this opportunity with their constituencies and networks to ensure that as many people as possible are able to provide their input on future transportation investments that will impact the region for Page 10 of 15

decades to come. Ms. Thomas welcomed questions from the Committee.

Chair Luna asked for questions or comments from the Committee.

Paul Cardon asked how increased telecommuting due to COVID-19 has had an impact on the transportation analysis. Ms. Thomas responded that MAG is continuing to monitor traffic on a weekly basis, and that in the past few weeks, traffic levels have rebounded to 90 percent of what they were before COVID-19. MAG has implanted a new transportation model, which will track the changes in movement of people and goods as well as how the percentage of people working from home will impact these factors. COVID-19 has emphasized the importance of being flexible in transportation planning as new transportation innovations require continuous adaptation.

Supervisor Jack Sellers made a few comments regarding the presentation. He noted that as one of the fastest growing regions in the United States, it is vital for the MAG region to have an aggressive transportation plan in place to sustain its way of life and continue to be an attractive region for businesses. He also reemphasized Ms. Thomas’s point about having a transportation plan that has the flexibility to adjust with ever- changing technology. Mr. Sellers said that as the anticipated future chairman of the Board of Supervisors, the extension of Proposition 400 will be a priority for him.

Vice Mayor Guardado recognized the need for more public transportation in the West Valley, such as extension of the light rail. She also asked if there are current plans to increase transit-dedicated sales taxes in cities that have not introduced such a tax yet. Ms. Thomas explained that there are a lot of critical decisions that will be made in the future scenario planning phase of the project using the trade-off analysis and other tools. She acknowledged that nearly 70 percent of transit operation funding comes directly from the budgets of cities in the region. There is only a small proportion of regional funding that helps to enable regional bus service, which equates to six bus routes and a handful of partial routes throughout the region. There is currently no regional funding for operations of light rail. This funding composition puts the pressure on local agencies to deliver transit. Ms. Thomas explained that they have been looking at what a future regional transit system will look like as well as the role of regional funding in developing the transit system. Questions such as whether there should be a required local match for regional transit operations support for bus service, or what are alternate mechanisms to deliver regional transit, are at top of mind in the planning process.

Vice Mayor Guardado followed up with another question. She asked if there were any

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considerations to implement a property or dedicated income-based tax that would be more progressive in nature given that sale taxes are felt more by working families. Ms. Thomas explained that they have had conversations about alternative taxing mechanisms. Feedback received from policy makers and city managers revealed that there was not an interest at this time in implementing an income or property tax, and that the sales tax is popular in part because the tremendous tourism economy means visitors to the Valley help contribute to the transportation investments they use.

Sintra Hoffman asked if the contributions coming from local cities are in the form of a local dedicated sales tax in those individual cities. Ms. Thomas explained that over a half-dozen cities in the MAG region do have a dedicated local sales tax that either in full or in part contribute to transit delivery, but not all cities have an established sales tax for transit. When asked whether the reason transit has been a controversial regional investment conversation in the Valley is because it is more of a local focus and therefore locally funded, Ms. Thomas noted that MAG sees both light rail investments and grid bus service as part of a regional system, and in her opinion, one of the reasons transit has been somewhat controversial is due to the region’s historic car- centric development pattern. She concluded noting that users of transit average several miles between origin and destination, demonstrating people are now traveling between not just within cities.

With no further questions or comments, Chair Luna thanked for his presentation.

6. Emerging Trends in Housing

Chair Luna introduced Anubhav Bagley, MAG’s Regional Analytics Director, to present a report on an analysis of current datasets on real estate transactions and housing affordability across the MAG region.

Mr. Bagley began the presentation by showing the unemployment rate in metropolitan Phoenix. As of October, the unemployment rate has increased to 7.5 percent, which equates to 191,737 individuals. This does not include the number of people that are underemployed or have left the work force. MAG has also been collecting data in partnership with the Arizona Department of Economic Security on unemployment claims. Mr. Bagley noted that unemployment claims are an indicator of what the future holds. Currently, unemployment claims are on the rise in the Phoenix region, at 574,808 claims just during the period of March 14, 2020 through November 19, 2020. Data related to unemployment rates also revealed that low wage workers have been adversely impacted. Low wage jobs are down by nearly 20 percent, while high wage

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jobs and middle wage jobs have seen a positive increase in the last few months.

Mr. Bagley next discussed the housing market and housing affordability in the region. Despite an initial drop in monthly housing sales at the beginning of the COVID-19 pandemic, monthly housing sales have risen and are actually higher now than they were during the same time last year. However, the rise in housing sales does mean there is a lower housing inventory. As of October, housing inventory is 26 percent less than it was during the same time last year. As a result, there has been an increase in the median sales price of homes by 16.7 percent across the entire Phoenix region. The current median home sale price for the Phoenix region is higher than the United States, but lower than the West sub region. Mr. Bagley noted that the Phoenix region is attractive to many out of state buyers looking for a home. About 17 to 18 percent of homes sold on a monthly basis go to out of state buyers, and the median price of homes bought by out of state buyers is 16 percent higher than in-state buyers. Mr. Bagley noted that of the top ten markets that are investing in the Phoenix region, six of them are located on the West Coast. This may be contributing to the increase in out of state buyers in the region.

Mr. Bagley showed how housing prices have changed in the region in the past ten years. In 2011, about 70 percent of the housing market was priced under $200,000. Today, only about 13 percent of homes are under $200,000. Ninety percent of the housing market used to be homes priced under $300,000. Today, less than 50 percent of homes are under $300,000. Similar trends have emerged in the rental market in the past 10 years. Between 2010 and 2011, about 25 percent of apartment units were under $500 and nearly 90 percent of the market was under $1,000. Today, there is virtually no units available under $500, and the number of units available under $1,000 has dropped to less than 30 percent. Interestingly, while there has been an increase in rental units in suburban areas, inner city neighborhoods have seen a decrease in asking rent. Mr. Bagley also shared data which shows that 478,000 households spend more than 30 percent of their income on housing, and 212,000 households spend more than 50 percent of their income on housing. Even more concerning is that 90 to 95 percent of these households have an income below $60,000 and 50 percent are single-worker households.

Mr. Bagley wrapped up the presentation by discussing evictions in the Phoenix region. Prior to the Arizona Eviction Moratorium, which began at the end of March, there were about 6,000 evictions per month in the region. After the Arizona Eviction Moratorium was put into place, evictions initially dropped significantly and are now beginning to tick back up. The Federal Eviction Moratorium is set to expire on December 31, 2020,

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which causes concern for what will happen to the number of evictions. Data also shows that 77 percent of evictions are in lower-income areas making less than $60,000. A recent study done by the University of Arizona and other partners estimated that there are between 121,372 and 274,000 households at risk of eviction in Arizona, which could result in $1.1 to $2.5 billion in public costs due to eviction-related homelessness. Survey results taken a few weeks ago reveal that 36 percent of respondents in the Phoenix region are not confident in their ability to pay next month’s rent, and of the tenants who are currently behind on rent payments, over 70 percent of respondents in the Phoenix region reported a likelihood of eviction in the next two months. Mr. Bagley welcomed questions from the Committee.

Chair Luna asked for questions or comments from the Committee.

With no questions or comments, Chair Luna thanked Mr. Bagley for the update.

7. Update on the Ari-Son Megaregion Council

Chair Luna introduced Elsa Beljean, Regional Economic Development Planner at MAG, to provide a brief update on the Ari-Son Megaregion Council.

Ms. Beljean explained that the League of Cities and Towns Conference was cancelled due to the pandemic, and so the Ari-Son Megaregion Council did not meet this year. To continue the conversation about economic development strategies between borders, MAG has partnered with the State of Sonora to host a webinar in March 2021. Ms. Beljean said that more information will be shared on the webinar in the coming months and encouraged the Committee to attend.

Chair Luna asked for questions or comments from the Committee.

With no questions or comments, Chair Luna thanked Ms. Beljean for her update.

8. Request for Future Agenda Items

Chair Luna asked if there were any requests for future agenda items.

Chair Luna requested to have a presentation from the Mesa Cares Small Business Technical Assistance Program at the next EDC meeting.

9. Comments from the Committee

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Chair Luna asked if there were any other questions or comments from the Committee.

There were none.

Adjourn

There being no further business, the Economic Development Committee meeting was adjourned at 1:04 p.m. The next meeting of the Economic Development Committee will be on February 2, 2021.

Chair

Secretary

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