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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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 2  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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 3  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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 4  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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 5  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. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 6   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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 7  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? NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 8   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. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 9   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. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 10   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 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 05/18/22 – MINUTES Page 11  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