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Informal Meeting Minutes Monday, October 23, 2017 Board Members 10:00 AM Denny Barney, Chairman, District 1 Steve Chucri, Vice Chairman, District 2 BOARD OF SUPERVISORS Bill Gates, District 3 Maricopa County, Arizona Clint Hickman, District 4 (and the Boards of Directors of the Flood Control District, Steve Gallardo, District 5 Library District, Stadium District, Improvement Districts, and/or Board of Deposit) County Manager Joy Rich "The mission of Maricopa County is to Clerk of the Board provide regional leadership and fiscally Fran McCarroll responsible, necessary public services to its residents so they can enjoy living in healthy and safe communities.” Meeting Location Supervisors' Conference Room 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS The Board of Supervisors of Maricopa County, Phoenix, Arizona, convened in Informal Session at 10:00 AM on Monday, October 23, 2017, in the Supervisors' Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2; Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Amy Goodloe, Minutes Coordinator; Joy Rich, County Manager; and Andrea Cummings, Legal Counsel. PRESENTATION Budget Office 1. ECONOMIC DEVELOPMENT PRESENTATIONS Presentation regarding the Economic Development Contracts (C-49-18-012-P-00) Chris Camacho, Greater Phoenix Economic Council Mike Mooney, Visit Phoenix Todd Sanders, Greater Phoenix Chamber of Commerce Greater Phoenix Economic Council Presentation Chris Camacho, representative for Greater Phoenix Economic Council (GPEC), thanked the Board and noted he would be presenting information regarding successes of the past year and for the year to come as outlined in the contract. He briefly explained GPEC history, regional success, five-year trend on revenue return and the following regional results summary: Informal Meeting Minutes Monday, October 23, 2017 Page 2 of 8 Regional Results Summary GPEC’S mission is to attract and grow quality businesses and advocate for Greater Phoenix’s competitiveness. GPEC is supported by Maricopa County in 22 cities and towns with more than 160 private sector investors. The economic climate is better than it was a few years ago. Mr. Camacho outlined a number of strategies GPEC has worked on that include the following: Assist more than 700 businesses as they relocated and expanded Help bring more than $13.5 billion in capital investment since 1989 The past 27 years they have brought over 125,000 jobs to the region Supervisor Chucri asked what the growth for private sector investors was in the last 5 years. Mr. Camacho responded that it used to be a 50/50 split on funding on any public and private contributions; now it has moved to 65% private funding. Mr. Camacho stated when he started there were 14 but now there are 22 cities and more private funds. The cities were held at a flat rate through the recession. Five-Year Trend on Revenue Return Maricopa County contract has a 31:1 return which means $31 of direct revenue for every $1 invested Informal Meeting Minutes Monday, October 23, 2017 Page 3 of 8 Fiscal Year 2017 Performance GPEC had its highest performing year with creating 8,130 jobs. GPEC used a conservative count and only counted phase one of investment. The average high-wage salary started at $61,835. The most recent change was 10 headquarters being relocated within the market. Mr. Camacho went into further detail about the list of companies that relocated in 2017. Supervisor Gallardo asked about the requirements to be considered a high-wage job. Mr. Camacho responded anything over $45,000 is considered a high-wage job. Supervisor Hickman asked if the companies listed on the GPEC FY2017 locate chart were the companies’ headquarters jobs. Mr. Camacho responded the businesses listed are new business units. Supervisor Barney asked about the three companies listed by non-disclosed names. Mr. Camacho responded the business will be disclosed when the company goes public. Mr. Camacho briefly explained the following FY 2017 metrics. FY2017 Media Activity Mr. Camacho briefly gave examples of media activity about the Greater Phoenix region which have been listed in: The New York Times Fortune Worth Regional Marketing & Promotion Release of two ecosystem reports on Cybersecurity and Finance & Insurance Hosted media tours all over the United States GPEC Business Insider is sent bi-monthly to a targeted list of brokers and national site selectors to share relevant industry news on the region GPEC has led 21 sales missions in Taiwan, Canada and select USA regions Industry Prospecting FY 2017 Business Prospects: 267 new business prospects were generated Released Foreign Direct Investment Report The GPEC Business Development Team works closely with site selectors through direct outreach, Executive Tours and marketing initiatives GPEC released its fourth market intelligence report around The Future of the Aerospace and Defense Industry in Greater Phoenix Supervisor Chucri asked what the second leading state is. Mr. Camacho responded that New York is the other outpost where the markets and companies are looking to locate. He stated the companies will do a comparison of cost and labor. Regional Economic Development Cooperation FY2018 Action Plan was created with significant input from the GPEC Next Leadership Council and the Cities’ Economic Development Directors GPEC continues to work closely with Governor Doug Ducey, the Arizona Commerce Authority, Maricopa County and local economic development organizations in order to enhance competitiveness and cooperation The GPEC Ambassador Program continues to engage over 2,000 individuals across a wide range of employers and held 19 ambassador events GPEC met with communities to continue to enhance modernization of economic development frameworks in an effort to improve competitive of the Greater Phoenix region Informal Meeting Minutes Monday, October 23, 2017 Page 4 of 8 Fiscal Year 2018 GPEC will be working on the following action items: Develop and utilize unique analytical tools and methodologies to drive both marketing approaches and identification of business development outreach targets Advance competitiveness priorities through regional collaboration Partner with GPEC’s member communities to evaluate community planning necessary for future projects Target key audiences through strategic media placement and digital platforms to enhance GPEC Implement strategies to heighten recognition of the Greater Phoenix region in targeted industries and markets identified by the Metro Phoenix Global Investment Plan FY 2018 Metrics Mr. Camacho reviewed the following FY 2018 Metrics noting the FY 2018 Stretch are the numbers GPEC perceives they will hit: Supervisor Hickman asked why Texas companies are now looking at Arizona. Mr. Camacho responded that Texas companies are looking at Arizona due to lower cost of living and a tighter labor market in Texas. He noted that Arizona is competing with Dallas and other large cities. Chairman Barney thanked Chris Camacho for his hard work. Visit Phoenix Presentation Mike Mooney, representative for Greater Phoenix Convention and Visitors Bureau (Visit Phoenix), stated they are the only entity that is serving and marketing all of Maricopa County and the benefit is that it creates a one-stop location for group-meeting planners. Maricopa County is the longest standing partnership with GPCVB. He noted the FY17-18 operating budget is $16.6 million with the following core functional areas: Convention/Group Meeting Sales and Services Marketing Tourism/Travel Industry Sales Communications/PR Membership Mr. Mooney provided the following data about one event. Informal Meeting Minutes Monday, October 23, 2017 Page 5 of 8 2017 NCAA Final Four Hotel Impact Occupancy increased 6.44% ADR increased 47.32% RevPar increased 56.4% The increase was compared over the same 4-day period in 2016. Mr. Mooney provided a table indicating the FY16-17 performance for contract goals. He provided the number of leads and room-nights booked within each district. The West Valley had the most impact. He stated that visitors peaked for attractions such as the Grand Canyon and Sedona. Many visitors took an extended stay and decided to see more attractions in Arizona. The State saw over 4 days in 2016, a revenue gain of $18.3 million dollars. The State hotel tax stayed at 5.5% and added over $1 million dollars in revenue. FY16-17 Performance to Contract Goal He mentioned the last three out of four years have been record production sales. He explained that hotels will have a high occupancy, but when more hotels are being built the occupancy drops. This is a cycle that hotels continue to have. He stated that the year 2019 will be a light year for Arizona due to events scheduled in other cities. He explained the area that fell short was visitor services. He based his numbers on the two events earlier in the year. The visitor services were able to reach 73.85% of their goal. Informal Meeting Minutes Monday, October 23, 2017 Page 6 of 8 Notable Media Placements Supervisor Hickman asked about the impact of the NASCAR Race. Mr. Mooney responded that due to the first race being so long they didn’t see any change in the assumption but there was a surge. He mentioned that many people who attend NASCAR’s race are local residents. Supervisor Gallardo stated Nevada has started looking at sports teams and asked what impact this will have on Arizona regarding hosting a Super Bowl or other events. Mr. Mooney stated Nevada may get chosen for the Super Bowl but it shouldn’t affect Arizona at this time. The Board thanked Mr. Mooney for his presentation. Greater Phoenix Chamber of Commerce Presentation Todd Sanders, of Greater Phoenix Chamber of Commerce, stated that 80% of new jobs come from existing companies. Performance Metrics Mr. Sanders explained the performance metrics. The companies are continuously reaching out to them, and they are able to provide feedback and answer questions. Informal Meeting Minutes Monday, October 23, 2017 Page 7 of 8 Mr. Sanders provided information in the following categories: Industry Leadership Council Outcomes Health Care Successfully advocated for an additional $350 thousand in funding for state loan repayment program that maximized a federal match of $1 million Hosted a benchmarking trip to Buffalo Niagara Medical Campus to explore the best practices Launched Wellness A to Z for the State and Greater Phoenix region to be recognized as a destination for health and wellness Bioscience Successfully advocated for additional investment with the Angel Investment Tax Credit Offered more recommendations to the Arizona Board of Regents to enhance tech transfer metrics resulting in positive outcomes for Arizona Hosted bioscience organizations to align efforts toward common goals for the region Workforce Collaborative Priorities Cyber security Financial services Health Care Compliance and Risk Management Construction A new cyber security website, AZCyberTalent.com, was launched to assist companies having trouble finding talent. Arizona has a workforce debate where financial companies will hire someone, train the individual but then they are unable to complete the job. Arizona has a 30% failure rate which is higher than other states. Supervisor Gallardo asked what may be causing the high rate. Mr. Sanders responded that it may be due to individuals not having the proper skill sets or they are unprepared. FY 2017 Goals Meet or Exceed Maricopa County Metrics Develop Deeper Business Relationships with Existing Businesses in Maricopa County to Enhance Retention and Expansion Continue enhancement for workforce development strategies FY 2018 Focus Focus on continuing the improvement of Data Aggregation and Analysis Develop deeper business relationships with existing businesses in Maricopa County to enhance retention and expansion Supervisor Gates noted Mr. Sanders shared concrete information and asked if he could share a success story. Mr. Sanders said he recently had a hearing at the State Senate regarding high- paying jobs that remain vacant. He stated the next day Mike Brewer of Brewer Enterprises Inc., stated he had received 19 phone calls from individuals requesting applicant information. He stated in the future he will focus more on a data-driven approach. Chairman Barney noted that data- driven information is a part of the decision process for the Board. The Board thanked him for his presentation. Informal Meeting Minutes Monday, October 23, 2017 Page 8 of 8 2. EXECUTIVE SESSION Vote to convene in Executive Session to consider items on the Executive Agenda dated October 23, 2017, for Board of Supervisors and relevant Special Districts pursuant to statutory authority listed for each item. Motion to approve by Supervisor Chucri, seconded by Supervisor Hickman Ayes: Barney, Chucri, Gates, Hickman, Gallardo MEETING ADJOURNED After discussion of the items listed on the Executive Session agenda and there being no further business to come before the Board, the meeting was adjourned. _______________________________ Denny Barney, Chairman of the Board ATTEST: ____________________________ Fran McCarroll, Clerk of the Board