HomeMy WebLinkAboutEconomic Advisory Board - Minutes - 05/18/2022
ECONOMIC ADVISORY COMMISSION
TYPE OF MEETING – REGULAR
May 18, 2022 4:00 – 6:00 pm
Via Zoom
05/18/22 – MINUTES Page 1
1. CALL TO ORDER
4:07 pm
2. ROLL CALL
List of Board Members Present
o Renee Walkup
o Blake Naughton
o Denny Coleman
o Aric Light
o Mistene Nugent
o Jeff Havens
List of Board Members Absent – Excused or Unexcused, if no contact with Chair
has been made.
o Brauilo Rajoas
o John Parks
o Thierry Dossou
List of Staff Members Present
o Josh Birks, Staff Liaison and Director, Economic Sustainability
3. AGENDA REVIEW
No changes
4. CITIZEN PARTICIPATION
N/A
5. APPROVAL OF MINUTES
No changes-minutes approved
6. NEW BUSINESS
Economic Health Changes/Updates/Projects
Presentation from Josh Birks.
Josh went over the City’s history regarding economic health. Prior to 2004
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the City had conducted its work as it relates to economic health on a project
by project basis and it was usually assigned to the City Manager’s Staff. In
2004 an Economic Vitality and Sustainability Action Group (EVSAG) was
created and got together for 12-18 months to talk about what should be the
City’s approach to being engaged in the community and reconcile around
some of the objectives. Council adopted a plan that included investing in
targeted industry clusters, dedicating staffing to economy, better attention to
what is going on and having better infrastructure to begin to react.
One and a half years later the city brought in Mike Freeman as a consultant
and later hired him as the first economic advisor. He brought forward an
action plan to the City and City Council that created the focus that has been
the mantra of the office since 2005/2006. It focused on business retention
first, then expansion, then incubation, and then attraction. They wanted to
focus on growing our own and building economic success off that versus
trying to land a fortune five hundred company and hoping they stick around
after incentives are done.
In 2012 Josh took over as director. During that same time frame, they were
developing the first economic strategic plan and they also joined the
sustainability services area alongside social sustainability and environmental
services. They have done some adjustments to the strategic plan since then
but have plans to update it this year.
The team has grown from 1 FTE to 13 FTE this year due to shifting from
investing in consultants to investing in staff. They have also shifted to
investing more in main street/local businesses.
The department has 5 focus areas
Primary employer support
Mainstreet business support
Talent and workforce development
Innovation
Redevelopment
Q (Mistene) How do you see the small business support evolving as we get
further out of Covid?
A (Josh) People go into small businesses because of what they are
passionate about, not because they want to be a small business
owner. I think we will always have a need to support small business
owners by giving them assistance to operate efficiently. It will be less
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about dealing with changes that the pandemic has brought and
instead be how to operate well by managing books and inventory in an
everchanging environment. The Small Business Center does some of
that, but we are hoping to see them act as a group that can analyze or
diagnosis and then we can step in and help them fix whatever issue
they may have. It would be voluntary where the businesses will show
up if they want the services. Right now, we have two bilingual staff
members for businesses who speak Spanish or prefer to conduct
business in Spanish. Currently the Small Business Center does not
have resources for consultants that speak Spanish. We are also
working on providing some of the trainings in Spanish and adapt it for
immigrant culture as many of them come informal economies that
contrast the US’s more formal economy.
Q (Jeff) Is that the only entity designed for this version of business?
A (Josh) Right now in our community yes. We are modeling if off of
other examples we have seen in the country.
Q (Jeff) Is it limited to minorities?
A (Josh) No, it is open to all.
Q (Jeff) Are you looking for people that speak Spanish?
A (Josh) With having two people who speak Spanish, we are looking
for folks with slightly different background for example, a female
entrepreneur. Spanish would be a nice addition, but it is not a
requirement like the first two positions were. Currently the trainings are
all typically produced for white male entrepreneurs. We want to
provide other ways. The next evolution of the program is finding
volunteers and trainings.
Q (Jeff) How is it tiered to white people vs all people?
A (Josh) What it doesn’t appreciate is the informal nature that some
immigrants have experienced previously.
Comment (Renee) The Small Business Center traditionally serviced
hands-on type of businesses like plumbers or construction and less
nontraditional in that regard like tech or bankers. Not good or bad, just
reality.
Comment (Josh) One of the experiences I have had reaching out to
the Spanish speaking community is they communicate in different
ways. For example, the radio is a very common venue for Spanish
speaking cultures. It is changing the training and putting some of those
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cultural nuances into it. Right now, it is just the nuts and bolts of how
you do good marketing, we want to change that to if you were to reach
out to this specific market segment, here is how they prefer to be
interfaced with. There is a new chair to the Small Business Center, so
there are going to be more changes coming.
Comment (Mistene) As a former small business owner, I am thrilled
by what the City and Chamber are doing.
Presentation (Josh) Research shows that immigrants create new
companies at a higher rate. It is an untapped resource we are tapping into.
We have yet to promote this service, but since the soft launch, in three weeks
we have already engaged with 25 businesses. Prior to that, we interacted
with 30 businesses just through our bilingual business specialists. So, in
about 12 months we have engaged with 50 businesses and half of those are
brand new businesses.
Primary employers bring wealth into the community. Primary employer
support includes business retention and expansion visits; specific industry
sector support; diversity, equity, and inclusion; business assistance;
connections and relationships and; talent retention and expansion.
Q (Denny) What is the political response to immigration?
A (Josh) It is mixed. Generally, as a community there is not a
backlash, however you still see it with certain parts of the community.
This is not to diminish that historically there has been prejudices and
great push back in multigeneration groups.
Comment (Jeff) My wife hasn’t had an issue but knows people that
have. If you get the minority populations, take on it, you can get a
better sense of it.
Comment (Renee) There is sensitivity that comes to Indigenous
cultures here. It seems like that is who is left out.
Comment (Josh) I agree with Jeff that I think a lot of people in this
community of Latino decent still experience negativity. The political
issue of immigration does not seem to be an issue of note in the
community. The Indigenous population is one that this community is
becoming acutely aware of too, especially around their historic
treatment and the treatment they still experience. Prejudice is alive in
the community, but immigration is not a hot topic, and there is a
distinction. However, everyone could feel different.
Presentation (Josh) Small businesses are more impacted by capital projects
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we do in the City. Doing work on areas like Linden Street have a direct
impact on small businesses. Linden was the moment that created some
opportunity for our department, and we will be bringing on someone who will
be a contact for businesses impacted by capital projects as well as create a
fund for relief assistance. This will not be a revenue replacement or rent
contribution. It will do things like marketing assistance to streets or business
and will have funds set aside if we accidently cut power and a cooler goes
down, so we can reimburse for those kinds of costs.
Q (Mistene) When you say Linden Street was the start for that opportunity
are you talking about the level of engagement from those business owners
through that process?
A (Josh) Linden is a current example but there have been other
examples in the past. Walnut was also very organized. I think what we
have now is enough of a trend. That created the right opportunity to
move forward with this. Local businesses create community wealth
which ultimately creates resilience. If the primary employers are
bringing wealth from everywhere, it only stays in our community if we
have a strong main street economy.
Q (Jeff) Do you lose some of that with the DBA being dissolved?
A (Josh) We lose a megaphone in an organized group to interface
with. If you cut out the LLC and sole proprietors, there are over 4,000
businesses with multiple employees in town. It is difficult for us to
connect on a regular basis, so having those entities representing like
the Chamber creates a venue of engagement easier. We lost
something in that engagement with those businesses will be more
difficult, but the DDA also has a network with many of those
businesses. We had two megaphones and now we lost one.
Presentation (Josh) Larimer County handles employee assistance for
getting rehired after being laid off and unemployment. We have relied on
Front Range Community College and CSU for talent development. Our
primary role is to be catalyst by saying the problem is over here and then
collaborate with our partners like Front Range Community College, CSU,
Aims, and Poudre School District. This is also when we focus our support on
certain industry sectors, for example like manufacturing because nobody
thinks its “sexy”.
Comment (Jeff) Every industry says that but being “sexy” doesn’t
drive attention. Those perks don’t drive retention. It is getting past that
hurdle of being “sexy” doesn’t matter.
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Comment (Josh) The average high school student is not exposed to
what certain industries can provide. There was a group that started
doing tours with high school students and their parents, once the
students saw some of the perks of the job and the parents saw the
stableness of the industry, more kids started to peruse that type of
degree. Every industry runs into this issue, and it is more about
helping particular students see themselves in a particular industry. It is
not always about going to college to start a degree as other paths can
have a great career
Denny also shared an example of how a tech company got students
interested in the industry by having an employee drive up in front of
them in a brand new F150. It changed their idea of success and
appeal to a certain industry.
Comment (Jeff) It is not an incentive issue, it’s a marketing issue.
Comment (Josh) Part of the work we are doing is exposure and
marketing to the talent pool coming out of high school.
Presentation (Josh) We are funding some investment in contractor
economy. We are seeing more individuals coming into the contractor space.
A lot of them have the skills to do the job, but not the knowledge to the
businesses side of things. We are investing in an academy with our partners
in Planning Development and the Transportation Department, where they can
come get licensed and we can teach them basic skills. That is funded through
ARPA funds and Grants.
Q (Aric) What is the timeline for that?
A (Josh) The contractor academy is open right now. It is more of an
on-demand thing. The sector specific stuff, we have been doing for
years.
Q (Mistene) Is that in conjunction with the Chamber?
A (Josh) Yes, there is that partnership there.
Presentation (Josh) There is also work being done for recovery grants that
are geared at employers who are trying to retrain their workforce to meet the
new needs and we are budling out what the recovery grant process apps will
look like. We want to do a sweep and have one application vs 5 applications
with 5 different processes. We have the funding for that right now.
We are waiting for funding to have grants designed to reskill, upskill or get a
new skill of individuals in the economy. Lots of these programs have been
successful. There is an interest in the medical field doing something similar
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with a specific nursing aid certificate. A lot of these employees cannot take
the time off to get these types of trainings. They can’t afford the training and
can’t afford to not work. The idea is that we will pay you to get the training to
come out commanding a higher salary and to be able to do more of what that
industry in our community needs. We are asking for 3.25 million and it will be
targeted at certain industries.
Q (Jeff) Do the hospital systems here do nurse training?
A (Josh) They have to, or they don’t have nurses. Yvonne who current
works for the Chamber came from the Columbine Health System
stated they are struggling to find and keep staff. Some of it is that they
come in with one skill set and then they must leave to get another skill
set. Columbine and other hospitals are interested in taking their people
to help them move along in their training to keep their supply and
retainment.
Q (Aric) Is there an interest in job placement for graduates. A lot of times
graduates leave the community.
A (Josh) There is an opportunity in my personal opinion, but not sure
if we will ever move that a lot. When you come out of college, if you
haven’t already found a life partner or experienced the world, you are
going to want to go do that. Bigger communities like Denver have
more options, so we are always going to lose a little against the pull of
other places. We do retain around 20%of graduates and that is pretty
good.
Comment (Mistene) I think Poudre School District is key.
Comment (Josh) Someone showed me the earning potential of a
doctor vs an auto mechanic, with debt there is around 15 years that
you are in a better position to take the trade job.
Comment (Mistene) I don’t know what the numbers are post Covid,
but previously, Front Range Community College graduates were
starting with higher salaries than CSU graduates.
Comment (Josh) It is a national issue. There needs to be a better job
helping kids figure out what is best for them at the time.
Presentation (Josh) Innovation has historically been led by Innosphere
Ventures and CSU has been huge here. A lot of successful businesses trace
lineage back to CSU.
Q (Denny) Where do their research dollars come from?
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A (Josh) A lot come from federal dollars and sponsored research.
There are a lot of relationships with private industries like Woodward
or John Deer. Another thing people don’t realize is the CDC Lab on
Foothills Campus is the second largest CDC lab in the county and they
do a lot of work with insect transferred diseases. There are also a lot
of places in the state that support innovation.
Presentation (Josh) Redevelopment includes supporting neighborhood
enhancement, supporting affordable housing, specials districts, policy
consultation and development as well as remediating and prevenient blight.
We engage in a lot of planning and development policy. We have been an
advocate for a two-tier fee structure for development for a long time as well
as encouraging people to invest in the property that is at the core of our
community. We need to go back to the underutilized space, that is mostly
parking lots and reinvest.
Q (Mistene) What is the engagement with historical preservation here?
A (Josh) Right now it is on a project-by-project basis. It can be sticky,
so we leave it alone until we must engage. Old town and the DDA
have been more engaged in historical preservation as that area has
already aged into a historical preservation age.
Presentation (Josh) There has also been ongoing covid response which
includes active actions (Multicultural Business & Entrepreneur Center,
industry support grants, workforce grants, and ForFortCollins.com) and
Upcoming actions (RUN Workforce support, local online marketplace, and
ongoing grant programs). We think there is an opportunity to create a single
basket experience when shopping locally. Some local retailers are so
overwhelmed and had bad experiences getting online that they are leery of it.
The challenge is inventory because online, you must have a much bigger
inventory then they are used to buying and managing. The power of Amazon
is creating a limitless supply.
Q (Mistene) How do you deliver on that?
A (Josh) That is the other challenge. We have been talking with
NOCO NOSH and they are interested in possibly doing a fulfillment.
There was a beta version early in the pandemic but if you had five
items from five different retailers, you were paying five different
shipping fees. There is a lot to figure out, we are just testing the space
to see if there is an interest from the consumer.
Comment (Jeff) You could just drive and pick it up. It takes about 14
minutes to drive across town, so I don’t know if delivery is the issue.
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Comment (Renee) It is a change in habit. I quit Amazon five years
ago. People ask me where I get certain items and I just get them from
a different site, I typically don’t have to pay for shipping.
Presentation (Josh) Some upcoming work includes expanding sectors like
hospitality and finance, conducting a national business survey, a business
appreciation celebration, as well as minimum wage and economic health
strategic plan update. This will be the first business survey after the
pandemic and will be going back to an in-person business appreciation
celebration. This year it will be a slightly different format because we are
doing more of a happy hour at the Magic Rat.
Q (Jeff) Do you charge sponsorships for the business appreciation?
A (Josh) No, I have said from the beginning that it needs to be City
money since the City is saying thank you. To get someone to pay for
that when we are traying to say thank you doesn’t work. We do try to
buy products from the business community.
Q (Denny) Do you charge for any of your services?
A (Josh) Not right now.
Presentation (Josh) Just one more thing to note that a minimum wage
discussion is coming before Council in October. I told the organization that I
didn’t want our office to lead the policy discussion because it could be a
conflict with the relationships, we have with community businesses. We are
staying connected though.
Q (Jeff) If I found anyone who is interested in the Cultural Business Center
either work or volunteer, are you the person I put them in touch with?
A (Josh) Yes, send them to me and I can connect them with the
correct person. Having people show up saying we think we can do this
to help, would be wonderful.
Q (Jeff) I have a random idea to go talk to business and put together a 3-to-
4-minute video for opportunities to give to PSD, would I talk to you?
A (Josh) Yes, start with me and I can connect you.
Comment (Renee) You would have to get the PSD decision makers
on board.
Comment (Josh) There is a new super intendent
Comment (Renee) To get in the schools you have to do a background
check and there is a lot of paperwork.
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Comment (Denny) The City and County combined resources to keep 675
acres at Coyote Ridge as open space.
Comment (Josh) Yes both the City and County have dedicated
revenue that goes toward the preservation and acquisition of natural
areas. I imagine they are using that.
7. UNFINISHED BUSINESS
Downtown Business Association (DBA) Update
Josh provided an explanation on why the DBA dissolved.
The DBA was struggling with revenue and keeping pace with costs pre
pandemic as a vast majority of revenue came from events hosted in the
Downtown area. Around 20% came from member dues. They were looking at
how they would diversify where they would get revenue from. Then the
pandemic hit, and they were unable to conduct events. They had to put all
their staff on furlough and closed their doors temporarily. At that time the
Downtown Development Authority (DDA) took over a piece of what the DBA
did including downtown gift cards as well as Downtown marketing and
promotions. They were clear that they would not take on events. Last month
the DBA board decided that they could not find a path to come back due to
the changing nature of events and having no money to bankroll to start an
event. They decided to dissolve the association.
One service lost is the events they hosted which included at least one beer
festival, the St. Patrick’s Day Parade, and a handful of other events. Those
events are no longer being produced by an entity. Marketing be done through
the DDA and Visit Fort Collins. The DDA is still able to do capital
investments. They are coming to the end of their tax sourcing, so they are
working on specific plans on how to spend funds they have left. Once the tax
collection stops, they will most likely have to scale back, but will have annual
funds to continue.
Q (Jeff) Are there other entities associated with Downtown or other events
that could take on those events?
A (Josh) Several events, including Taste of Fort Collins and Tour de
Fat that have been produced by other entities that still occur
Downtown. The City has an events coordinator to help rally resources
when events happen Downtown. I am not sure if there is anyone
stepping in to host those events. I am not saying another entity
couldn’t do that, just nobody has yet.
Comment (Denny) Whoever came up with the idea of making an alleyway
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pedestrian friendly, it was a great idea. Not a lot of towns do that.
Q (Denny) I assume the flowers and Christmas lights are taking care of by
other entities?
A (Josh) The Flowers Downtown are maintained through the Parks
and Recreation Department at the City. The Christmas lights are a
partnership that did include the DBA, but now is just with the DDA, City
of Fort Collins, and the General Improvement District. The General
Improvement District is charged with maintaining sidewalks and
contributed to the Oak Street Plaza renovations. Their charter is
mainly for maintenance of sidewalks, so we are cautious how much
we use it for a purpose outside of that. The conversation is that with
the DDA changes and the DBA dissolving, that this entity could step
up and do more because State Statute allows GIDs to do more, but
our local charter limits it.
Q (Mistene) Just to clarify, the DDA tax financing goes out soon?
A (Josh) Yes, it expires in 2029 in a municipal sense. They are
starting to hone in on what they are going to use the remaining funds
for. They do have money for operations. They will undergo a
significant transformation but what that will look like, they are still
working through. They could find grants or other sources of revenue.
They are allowed to construct and maintain facilities. Right now, it is
not clear to them or anyone where that funding will come from to
continue to make those investments.
8. BOARD MEMBER AND STAFF REPORTS
None
9. OTHER BUSINESS
10. ADJOURN - 6:00 pm