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City of Arvada City Council Agenda MARCH 25, 2019 WORKSHOPS

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City of Arvada City Council Agenda MARCH 25, 2019 WORKSHOPS City of Arvada City Council Agenda MARCH 25, 2019 WORKSHOPS Councilmembers: Staff Members Usually Present: Info: 720­898­7550 Marc Williams, Mayor Mark Deven, City Manager John Marriott, Mayor Pro­Tem Lorie Gillis, Deputy City Manager Bob Fifer, At large Chris Daly, City Attorney Nancy Ford, District 1 Burt Knight, Director of Public Works David Jones, District 4 Jim Sullivan, Director of Utilities Mark McGoff, District 2 Ryan Stachelski, Dir. of Community & Economic Development Dot Miller, At large Bryan Archer, Director of Finance Rob Smetana, Manager of City Planning & Development Kristen Rush, City Clerk CITY COUNCIL CHAMBERS 6:00 PM 1. CALL TO ORDER/ROLL CALL OF COUNCILMEMBERS 2. WORKSHOPS A. AEDA Update and Funding Request B. Joint Workshop with City Council and Planning Commission ­ Land Development Code (LDC) Update C. The City of Arvada City Council City Strategic Plan 2014 to 2019 (5th Update) D. Staff Updates 3. ADJOURNMENT REPORT TO CITY COUNCIL AGENDA ITEM 2.A. WORKSHOP TO: THE HONORABLE CITY COUNCIL DATE: March 25, 2019 SUBJECT: AEDA Update and Funding Request Report in Brief The Arvada Economic Development Association (AEDA) Board of Directors has a formal agreement with the City of Arvada to provide economic development services. AEDA’s President, Ken Olsen, and AEDA Executive Director, Daniel Ryley, will provide an update to City Council on AEDA program outcomes and impact of AEDA’s funding since 2009, including specific attention to results achieved since the last funding allocation in 2016. Mr. Olsen and Mr. Ryley will showcase that AEDA’s results are consistent with City Council’s FOCUS performance measures and Strategic Results. In conclusion, Mr. Olsen will present a formal AEDA funding request for City Council’s consideration in an amount of $500,000 for continued AEDA program funding towards the continued successful implementation of AEDA's Strategic Plan. Background AEDA is a non-profit organization with a mission to provide business and commercial development services to new and existing businesses, so they can grow and expand to create jobs, increase revenues and make capital investments which enhance the community. As part of AEDA's agreement with the City of Arvada, the City provides AEDA an operations budget with an expectation to achieve specific economic development goals for the community. In addition, the City historically and periodically provided separate supplemental funds to AEDA so that the organization could create financial assistance programs designed to attract or expand companies. These programs were intended to encourage additional jobs, increase revenue through sales tax and/or capital investment, and support the growth and sustainability of existing businesses, ultimately helping to support a sustainable tax base for the City of Arvada. In 2016, AEDA Board President Dave Doherty presented an overview of AEDA’s past achievements which outlined how previous supplemental funds have been used. Past funds were originally distributed and deployed in two phases. In the first phase, beginning in 1992, $600,000 was originally allocated to AEDA, which it used sparingly until 2009. In 2010, AEDA received its second phase of funding, an allocation $1,500,000. In both 2015 and 2016, City Council allocated an additional $500,000 towards AEDA’s programs. A total of $2,500,000 in funding has been received by AEDA from the City of Arvada since 2010. Strategic Alignment The recommendation is in alignment with current City Council Strategic Results around Economic Development, including jobs and capital investment. Benefits of this approval include: SUBJECT: AEDA Update and Funding Request PAGE: 2 ITEM: 2.A. Continuation of AEDA's proven track record and successful implementation of its Strategic Plan Continued advancement of City Council Strategic Results pertaining to new jobs and capital investment Support of an Arvada business environment conducive to growth and retention of existing businesses, attraction of new businesses and investment, private sector investment into infrastructure and healthy sales tax generation A measurable return on investment in regards to economic impact and leveraged public to private sector spending Additionally, funding of AEDA and its programs demonstrates specific strategic alignment with the following Council Strategic Results: By 2019, create $350 million in private sector capital investments (buildings, furniture, fixtures, and equipment) By 2019, 1,000 new jobs from businesses will be created and located in urban centers and corridors By 2019, 800 new non-retail jobs from businesses will be created within the following targeted industries: medical, manufacturing, research and development, bio-medical, energy, enabling technology, and professional services Next Steps The Council should note that the AEDA Board's request is not currently included in the $2,375,000 recommended allocation for one time funds from the General Fund that will be considered during the Public Hearing scheduled for April 1. This recommendation reflects the Leadership Team's concerns regarding current economic trends, including relatively flat sales tax collections, increasing unemployment and projected slowing of building activity. The recommendation also reflects the additional expenditures approved for the 2019-2020 budget, including additional compensation and vehicles for Public Safety, Technology Security upgrades and continued redirection of funds for Street Maintenance. Prepared by: Daniel Ryley, Director of Economic Development Reviewed by: Carolina Rodriguez, Legal Administrative Specialist 3/5/2019 Sherie Farstveet, Law Office Administrator 3/5/2019 Approved by: Ryan Stachelski, Director of Community and Economic Development 2/27/2019 Aaron Jacks, Assistant City Attorney 3/5/2019 Rachel Morris, Deputy City Attorney 3/6/2019 Chris Daly, City Attorney 3/6/2019 Lorie Gillis, Deputy City Manager 3/6/2019 Mark Deven, City Manager 3/12/2019 Enclosure, exhibits & attachments required to support the report AEDA Funding Workshop Arvada City Council March 25th, 2019 Arvada Economic Development Association (AEDA) Who we are: • 16 Board Members (Business & Community Volunteers) • 9 Retention Committee Members • 3 Staff Members • 67 Strategic Partners AEDA is a separate and independent entity from the City of Arvada that works in close partnership to support a pro-business environment. AEDA Strategic Partners • Regional & State Economic Development Agencies • Chambers of Commerce • Small Business Lenders • Small Business Development Resources • Industry Partners and Associations • Workforce Development Agencies • Higher Education • Business Services & Resources • Nonprofits • Utilities • Real Estate Community AEDA & City of Arvada Historic Partnership From 1992 to 2010, AEDA managed two financial assistance programs: • Revolving Loan Fund: 10 Loans Funded • Financial Assistance Grant: 41 Grants Funded Total funds distributed 1992 - 2010: $1,050,000 Measuring Success 2009 - 2019 City of Arvada’s Investment the Last 10 years Since 2009 City Council has allocated $2,500,000 to AEDA. During that time AEDA has provided: • $383,500 in loans • $46,500 in training grants to 14 manufacturers • Over $1.1 million in grants to 136 small businesses and commercial property owners • $525,000 in microloans via a $200,000 contribution • $715,500 through 21 Opportunity Fund grants • Over $75,000 into other various programs, including job creation, site engineering studies and workforce development Measuring Success 2009 - 2019 City of Arvada’s Investment the Last 10 years During that same period, the return to the City of Arvada has been: • Revolving Loan: All AEDA loans have been fully repaid. 40 new and retained jobs • AMI Program: 57 new and retained jobs, $2.7 million in capital investment and $500,000 in cost savings • Small Business Grants: $7 million in new private sector capital investment • Microloan: 15 new and retained jobs, capital deployed to 14 disadvantaged Arvada business owners (did not qualify for traditional commercial financing) • Opportunity Fund: Shopping Centers supported yielded a net increase of $32 million in new sales tax. $3.8 million annually in new tax revenue, $34 million in total new capital investment, added 689 jobs • Other Programs: Supported the Arvada Works industry collaboratives, helped catalyze industrial development at Parkway Center, and conducted targeted Focus Groups to understand community’s perceptions on growth and development Inflow/Outflow 2016 – 2019 (as of February 2019) Measuring Success 2016 - 2019 In 2016, AEDA was allocated $500,000 from City Council. Investment into driving more strategic, innovative and impactful programming. • Refinement of grant programs • Development of Impact Driven Strategic Plan • Focus on communication and public relations AEDA provided $397,000 in funding to 54 different projects. The projects yielded $260 million in new capital investment, created or retained over 130 jobs, and generated over $2.5 million in new tax. Total funds used were the 2016 City Council allocation plus AEDA funds committed in 2015. Facilitating Partnerships: Highlights 2016 - 2019 Wanco • Retained 250 jobs, 150 new primary jobs, $9 million capital investment • Supported phase one completion of Clear Creek Regional Park Prescient • 200 new primary jobs, $8 million capital investment • Retained company in Colorado AMI Program • 14 Arvada manufacturers served • $2.5 million increased/retained sales, $450,000 cost savings, 57 new/retained employees
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