April 14 2021 Regular Meeting Minutes
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Page 1 MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY BOARD OF THE CITY OF CHANDLER, ARIZONA, WEDNESDAY, APRIL 14, 2021, HELD VIRTUALLY VIA WEBEX. Board Present: Ryan Nouis, Chairman Jonvieve Bryant, Vice-Chairman Micah Miranda, Secretary Cecilia Ashe, Boardmember Angela Creedon, Boardmember Steve Greenhalgh, Boardmember Bill Gusmano, Boardmember Terry Locke, Boardmember David Moss, Boardmember Ryan Smith, Boardmember Mike Spangenberg, Boardmember Larissa Spraker, Boardmember Julie Trujillo, Boardmember Nick Woodruff, Boardmember Terri Kimble, Ex-Officio Joshua Wright, Acting City Manager, Ex-Officio Board Absent: Karla Moran, Boardmember Others Present: Mayor Kevin Hartke Councilmember Terry Roe Cori Garcia, Mayor and Council Communications Manager Kimberly Janes, Tourism Program Manager Edyie McCall, Economic Development Manager Chelsey Faggiano, Economic Development Specialist Ryan Kaup, Economic Development Specialist Michael Winer, Economic Development Specialist Odette Moore, Economic Development Research Analyst Chase Farnsworth, Public Member of the Virtual Audience Brent Menzel, Public Member of the Virtual Audience Celeste Kerlsrud, Public Member of the Virtual Audience 1. Call to Order/Roll Call Mr. Nouis called the meeting to order at 8:33 a.m. 2. Approval of Minutes Mr. Smith made a motion to approve the minutes from Wednesday, August 12, 2020. The motion was seconded by Mr. Moss. Minutes approved unanimously. 3. Unscheduled Public Appearances None Page 2 4. Scheduled Public Appearances None 5. Briefing Items Chandler Economic Development staff provided an overview and update on the following initiatives: a. Business Hiring & Retention Program — Michael Winer, Economic Development Specialist, said City Council allocated $9.75 million in Arizona Coronavirus Aid Relief and Economic Security (AZCARES) funds to support businesses keeping workers on payroll during COVID-19. The program ran from August 2020 to February 2021 and was administered by the Arizona Community Foundation and City of Chandler. A total of $9,547,300 was disbursed to 838 businesses. The top industries among applicants were Healthcare, Accommodation and Food Services, and Retail. Approximately 70% of businesses funded have fewer than 10 employees. b. PPE Grant — Odette Moore, Economic Development Research Analyst, provided an update on the City’s partnership with the Chandler Industrial Development Authority to assist businesses with personal protective equipment (PPE) costs. The program is still running and qualifying Chandler businesses can apply for up to a $500 grant. To date, the program has supported 260 businesses with $120,000 disbursed. The Chandler Industrial Development Authority authorized $200,000 to fund the program. c. PPE Business Kit — Edyie McCall, Economic Development Manager, provided an update on the City’s partnership with the Chandler Chamber of Commerce to distribute PPE kits to businesses. The kit includes two boxes of face masks, one automatic hand sanitizer dispenser with stand, and one gallon of hand sanitizer. To date, the program has distributed a total of 1,481 kits to Chandler businesses. City Council allocated $500,000 in AZCARES funds for the program. d. “I Choose Chandler” Marketing Initiative — Kimberly Janes, Tourism Manager and Chelsey Faggiano, Economic Development Specialist, discussed the history of the marketing campaign and next steps to encourage residents and visitors to patronize Chandler businesses. The campaign was launched in May 2020, and utilized a mix of traditional and digital media to broadcast the “Choose Chandler” message. Phase 2 of the campaign focused on holiday shopping and creating memories in Chandler. Phase 3, which is now underway, promotes “staycations” while continuing to encourage people to shop local and create memories in Chandler. The campaign is planned to run through the rest of the fiscal year. e. City of Chandler Market Update — Ryan Kaup, Economic Development Specialist, provided an update on recent business activity. Projects highlighted included: Page 3 • Intel building two new fabrication facilities ($20B investment, 3,000 jobs); • NXP opening a new fab dedicated to 5G RF power amplifiers (100 jobs); • Rinchem expanding its facility in West Chandler (50,000 SF, 25 jobs); • VB Cosmetics relocating/expanding to a new facility (40,000 SF, 100 jobs); and • Viavi Solutions relocating its headquarters to Chandler and also establishing a new manufacturing operation (104,000 SF, 233 jobs). Mr. Kaup then gave an overview of commercial real estate trends in Chandler, including vacancy rates and construction activity for retail, office, and industrial space. f. Infill and Redevelopment — Mr. Winer and Micah Miranda, Economic Development Director, provided an update on the City’s Infill Incentive Plan. The program was launched in 2009 to support the redevelopment of aging retail centers by reimbursing certain project expenses. In 2019, the City’s Law Department advised pausing the program due to a Goldwater Institute lawsuit against the City of Peoria. That case was resolved in February 2021 when the Arizona Supreme Court filed its opinion, reinterpreting the State’s Gift Clause and further limiting how municipalities can incentivize private investment. As a result, the City will need to consider other approaches to support redevelopment, such as: place branding, placemaking and public infrastructure projects, evaluating City regulations, engaging in land acquisition and assembly, and advocating for changes to state legislation. 6. Action Items None 7. Advisory Boardmember Comments a) Ms. Ashe asked how the business support programs are being marketed by the City. Mr. Miranda replied that the programs have been marketed through use of digital social media campaigns, direct emails, outdoor advertising (digital billboards), City-wide communication channels, utility bill inserts, and a direct mailing campaign to qualifying businesses. b) Mr. Smith asked about lessons learned while executing the programs. Mr. Miranda said the biggest takeaway is to make the application process as easy as possible and to really market the programs so businesses know about them. c) Ms. Trujillo thanked Ms. McCall and Mr. Miranda for their assistance with the PPE programs. She also thanked the City for providing the University of Arizona with an opportunity to promote its Professional MBA Program through a video interview with Councilmember Ellis. 8. Next Meeting Mr. Nouis announced that the next meeting date has not been determined and that City staff will follow up to inform the board. 9. Adjournment Mr. Locke adjourned the meeting at 9:51 a.m. Page 4 Respectfully Submitted, ________________________________ Ryan Nouis, Chairperson ________________________________ Micah Miranda, Board Secretary