Attachment A - EDA Subcommittee Minutes June 10 2026_.pdf
City of Phoenix — Economic Development and the Arts Subcommittee (2026-09-09)
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City Council Chambers 200 W. Jefferson St. Phoenix, Arizona Subcommittee Members Present Subcommittee Members Absent Councilwoman Ann O’Brien, Chair Councilwoman Laura Pastor Councilman Kevin Robinson Councilwoman Debra Stark CALL TO ORDER Chairwoman O’Brien called the Economic Development and the Arts to order at 10:00 a.m. with four members present. CALL TO THE PUBLIC None. MINUTES OF MEETINGS 1. Minutes of the Economic Development and the Arts Subcommittee Meeting Councilwoman Pastor made a motion to approve the minutes of the May 14, 2026, Economic Development and the Arts Subcommittee meeting. Councilwoman Stark seconded the motion which passed unanimously, 4-0. CONSENT ACTION (ITEMS 2-3) Items 2-3 were for consent action. No presentations were planned, but staff were available to answer questions. 2. 19th Avenue and Montebello Avenue - Authorization to Issue Disposition and Redevelopment 3. Greater Phoenix Economic Council - Authorization to Add Funding Councilwoman Pastor made a motion to approve Items 2-3. Councilwoman Stark seconded the motion which passed unanimously, 4-0. ATTACHMENT A Phoenix City Council Economic Development and the Arts Subcommittee Summary Minutes June 10, 2026 INFORMATION AND DISCUSSION (ITEMS 4-7) 4. Report on Art in Private Development Research and Ordinance Framework Deputy City Manager Frank McCune introduced the item and Interim Arts and Culture Director Carrie Brown. Ms. Brown stated staff is excited to share additional information on Art in Private Development (AIPD) and noted the participation of their legal consultant. She detailed stakeholder feedback from real estate developers requesting predictable processes, clear thresholds, flexible compliance, and clarity on maintenance and ownership, while artists requested public visibility and multiple eligible project types. She explained AIPD options and legal considerations, including comparative programs, tiered approaches, and in-lieu payments. Ms. Brown outlined considerations for Phoenix such as a mandatory ordinance, applicability to commercial and mixed-use development, valuation thresholds in a tiered structure, and flexible compliance options. She proposed seeking Council guidance, gathering additional stakeholder input, conducting legal review, and further evaluating project types. Councilwoman Stark asked whether the in-lieu payment would require establishing a dedicated trust fund like the City of Scottsdale’s and if that would need to be added as part of drafting the ordinance. Ms. Brown replied yes. Councilwoman Stark shared the ordinance is worth pursuing along with further research. Councilwoman Pastor asked whether she would still be able to discuss community art preferences with commercial and mixed-use developers or if a new ordinance would limit that discussion. Ms. Brown responded staff would not want to create any roadblocks to those conversations and confirmed dialogue can still occur. She explained the current ordinance is voluntary and incentive-based, developers want barriers reduced to make incorporating art easier, and existing processes will continue to support those projects as discussions about a formal ordinance continue. Councilwoman Pastor asked how the process would work if the ordinance became mandatory, noting some developers may prefer to contribute a set amount to a trust fund rather than include artwork on their project. Ms. Brown replied staff heard from the initial group who requested different options and staff have to build the program based on the needs of the community. Councilwoman Pastor restated her concern of there being no community benefit if the ordinance were to be implemented. Ms. Brown added the use of in-lieu funds could be shaped through program design, noting some cities apply geographic limits so funds are spent in the neighborhood where the development occurs. She stated this is an option Phoenix could also consider. Chairwoman O’Brien asked for clarification on the thought process behind proposing a one percent on-site requirement and a half percent in-lieu option, noting San Diego uses a similar structure while Scottsdale uses one percent and one percent. Ms. Brown explained that the proposed half percent in-lieu option was based on trends in other programs and legal precedent from Oakland but emphasized it is fully negotiable. She added some programs use the lower percentage to incentivize in-lieu payments, while the one percent on-site requirement is for additional project management and overhead costs. Chairwoman O’Brien asked how we would incorporate areas that are not located in the downtown area. Ms. Brown stated geographic guidelines could strengthen the use of in-lieu funds, noting many programs require those fees to be spent in or near the neighborhood where the development occurs. She added Phoenix could consider a similar approach when designing its program. Councilwoman O’Brien thanked staff for the presentation and asked when can they provide additional updates. Ms. Brown replied that staff would like to spend additional time on outreach and research and can provide an update to Council in four or five months. Catrina Kahler, President and CEO of ArtLink, stated all private art investment in Phoenix has been voluntary and there is strong support for a clearer, structured Citywide approach, including a tiered model and a one percent requirement. She noted residential developers are also interested. 5. 2026 NCAA Women’s Final Four Post Update Phoenix Convention Center (PCC) Director Jerry Harper and Major Events Administrator Eric George presented an update on the Women’s Final Four. Mr. George reported the Women’s Final Four drew nearly 10 million championship viewers, making it the third most-watched on ESPN, with over five million viewers for each semifinal. He stated the broadcast reached 227 countries and territories, all games were sold out, and participants represented 41 states and seven countries. Mr. George noted community events saw record or maximum attendance, including 35,000 at Ford All-Fest and 25,610 at TurnTown. He added Valley Metro recorded 139,000 riders, TSA screened 256,000 passengers with a 5.5-minute average wait, and environmental efforts diverted 9.5 tons of material and avoided 38 metric tons of emissions. Mr. George shared extensive outreach engaged 13 neighborhood groups, and City social media generated over two million impressions and 75,000 interactions. Mr. George concluded by thanking the 10 working groups and partner organizations who contributed to the event’s success. Mr. Harper affirmed this was a well-attended event and PCC is looking forward to hosting the NBA All-Star game. Councilman Robinson thanked staff and asked what they would change or improve for the next event. Mr. George replied staff will continue to evaluate on the successes and build on those, using previous events as a model. Councilwoman Pastor suggested staff look at the area of the concert due to the amount of people in attendance and safety aspect. Mr. George stated the popularity of the concert exceeded expectations and once they reached capacity, staff sent out communication and had police support to monitor and manage. Chairwoman O’Brien stated the event was incredible and kudos to all for an amazing job and looks forward to the NBA All-Star game and thanked staff. 6. Phoenix Economic Overview and Update: Part 5 - Building a Stronger Regional Workforce Community and Economic Development (CED) Director Ryan Touhill provided an overview of Phoenix in the regional workforce system, workforce programs and factors influencing the workforce. He stated staff are in the center of the workforce development system. CED Deputy Director LaSetta Hogans reported Phoenix is experiencing rapid population increases and a tight labor market. She stated industry demand has shifted from traditional industrial trades to fields such as healthcare and software development, emphasizing this shift highlights the need to continually adjust training pathways. Ms. Hogans noted the Workforce Board connects resources across partners and helps build a strong talent pipeline. She further explained the board has adopted a Community of Practice to convene workforce providers, education partners, and employers to bring solutions forward and discuss real time employer needs. Ms. Hogans provided information on their two Arizona@Work comprehensive job centers located in Maryvale and in South Phoenix. She also shared services have expanded into libraries and that a significant number of residents have been served throughout Phoenix. She stated the Human Services Workforce Development Division provides training, assessment, counseling, and job search assistance to adults, while youth programs offer work experience and leadership development. She explained supporting Phoenix employers includes apprenticeship sponsorship, customized recruitment strategies, and workforce training tools aimed at helping employers upskill workers and retain talent. Matthew Rich, Director of Operations for Nautilus Systems, shared his North Phoenix manufacturing company has participated in Incumbent Worker Training in technical skills, Lean Six Sigma and quality, and leadership/coaching. He noted trainings improved manufacturing processes, reduced defects, and generated substantial cost savings through setup reduction and green-belt projects. Mr. Rich added leadership development strengthened his team and contributed to the company’s four percent turnover rate. He emphasized such training would have been difficult for a small business to afford without IWT funding and expressed appreciation for the program’s support. Ms. Hogan then explained how Phoenix is using innovation to strengthen workforce efforts, highlighting investments in the Summer Youth RISE paid work program, the ElevateEd partnership connecting employers with high schools, and support from the Parks Foundation and JP Morgan Chase. She noted the City’s role in a new Industry Skills Grant to upskill workers in advanced manufacturing over the next three years and reported the mobile career units held 45 events with nearly 100 employers, drawing over 2,000 job seekers and resulting in more than 600 job offers. She added the upcoming Workforce and Education Training Center will serve as a major talent-building hub and highlighted apprenticeship growth through partnerships with TSMC, the Semi Foundation, and the National Electrical Contractors Association, noting four completed cohorts, significant wage gains, 44 apprentices currently in progress, and new expansion into biomanufacturing with GPEC. Jarret Guy, Assistant Superintendent for Teaching and Learning from West-Mec stated the program supports students in western Maricopa County and announced the schools expansion to a sixth campus with 36 programs and pathways. He stated the goal of the organization is to create economic independence for students. Pearl Chang Esau, Founder and CEO of TechSmart Learning Fund, and member of Phoenix Workforce Board, stated the goal of TechSmart is to ensure Arizona students are prepared for the increase in technical roles. She shared the organizations four goals which are coordinating efforts, establishing scale and high-tech career pathways, creating data infrastructure, and partnering with other states. Whitney Marsh, Associate Vice President and Executive Director of ASU Helios Decision Center explained Helios and ASU partnered to build a longitudinal data visualization system to connect education and workforce data, developed with statewide partners and more than 60 school districts. She noted the tool projects high-growth jobs using Census, BLS, and LCAST data, identifies talent and credential gaps, and highlights needed interventions. Ms. Marsh added recent work with TechSmart focuses on semiconductor workforce demand, comparing current education program outputs to the projected 25,000 new jobs to guide future investment in workforce and education programs. Councilwoman Stark shared she has been enjoying the efforts of the department. Councilman Robinson stated expanding to the medical field would be a great opportunity for West-Mec. Councilwoman Pastor shared she has witnessed West-Mec’s impact locally in Phoenix. Chairwoman O’Brien thanked staff for the presentation and stated she is a huge supporter of West-Mec. She asked how the Council can help advocate for the program. Mr. Guy stated West-Mec is continuing to grow campuses and there are waitlists in the healthcare programs. He shared West-Mec staff is in a planning phase for a campus in South Peoria and advocating for career and technical education would be helpful. Chairwoman O’Brien thanked the ASU Helios Decision Center for helping leaders identify gaps, needed changes, and emerging career opportunities. She emphasized the importance of reaching students by fifth grade so they can learn about careers they may not otherwise encounter and understand how early decisions affect future opportunities. She highlighted life-changing outcomes from the TSMC apprenticeship program, noting participants who welcomed a child and purchased a first home, and pointed out the region’s strong wage growth, rising from an average of $36,000 in 2014 to about $89,000 in 2025. She expressed gratitude for making significant improvements in the lives of those in the greater Phoenix area. Mr.Touhill stated they will be taking a break in the summer but will revisit in the fall to strategize where economic development might be going and CED’s role for the future. 7.Current Smart City Innovations Office of Innovation Director Michael Hammet and Chief Information Officer Steen Hambric presented the current SmartCity innovations. Mr. Hammett provided an update on Phoenix’s first Citywide Smart Cities Plan, outlining five priority areas and highlighting technologies such as sensors, AI, GIS, digital twins, and drones. He noted Water Services’ leadership in smart water innovations, including SewerAI, which doubled inspections from about 300 to 600 miles per year and reduced inspection cycles from 15 to 19 years to five to seven years, along with SmartCover and Kando systems that prevent blockages and contamination. He also described the low-cost smart water pilot, which uses a remote water-monitoring device. It has detected three leaks across 14 units in six months, and plans to expand its use at the Phoenix Convention Center. Mr. Hammett added that new assistive listening technology has been installed in Council Chambers, with more accessibility upgrades underway across City facilities, and thanked Information Technology (IT) staff for their support. Mr. Hambric explained that smart operations are a key priority area and that the City is already using smart technologies to improve IT and departmental functions. He noted IT is leveraging data tools project management, and 27 AI tools have been approved to enhance employee productivity and resident services. He added that the City is improving online access through the Phoebe virtual agent, expanding digital twin capabilities, and advancing permitting modernization through Shape Phoenix, which launched its Phase 3 update in April 2026. Mr. Hambric highlighted Public Works’ use of optical sorters achieving 90 to 95 percent material purity and processing three to six tons per hour. He also noted the Street Transportation Department’s use of NoTraffic technology at 38 intersections, with plans to expand to 41 more, allowing real-time signal adjustments to reduce delays and improve traffic flow. Mr. Hammett announced intelligent policing such as the unmanned aerial systems program and electric bikes for police officers. Councilwoman Stark announced fundraising for Desert Horizon due to the success of electric bikes. Chairwoman O’Brien shared her excitement for innovative technology being used by first responders and other departments. Councilwoman Pastor shared her appreciation for staff’s efforts. CALL TO THE PUBLIC None. FUTURE AGENDA ITEMS None. ADJOURNMENT Chairwoman O’Brien adjourned the meeting at 11:45 a.m. Respectfully submitted, Taniya Williams Management Fellow