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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/09/2007 - REQUEST FOR FUNDING FROM THE NORTHERN COLORADO ECO DATE: October 9, 2007 WORK SESSION ITEM STAFF: Darin Atteberry FORT COLLINS CITY COUNCIL Mike Freeman SUBJECT FOR DISCUSSION Request for Funding from the Northern Colorado Economic Corporation (NCEDC). GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED This will be a discussion regarding City funding for the NCEDC for 2008 and 2009. BACKGROUND Representatives from the NCEDC will present a request for funding to the City Council for 2008 and 2009. The City provided$50,000 to the NCEDC in 2005 and has not provided a contribution since that time. The NCEDC plays a key role in assisting City staff in implementing the Economic Action Plan, including the following: 1. Leading efforts to retain and assist in expanding existing businesses. 2. Providing the lead on inquiries regarding doing business in Fort Collins from national and regional site selectors. 3. Providing direct funding for the Fort Collins Technology Incubator. 4. Providing direct funding for the Clean Energy Cluster. 5. Providing direct funding for the regional economist at CSU. 6. Supporting the Biotechnology cluster. 7. Supporting the Software cluster. 8. Supporting the Chip Design cluster. 9. Coordinating State of Colorado Office of Economic Development incentives. 10. Providing resources for prospective companies. 11. Attending national trade shows and other regional marketing endeavors. The staff recommends that the Council provide funding for the NCEDC in 2008 and 2009. The services that the NCEDC provides directly support City economic goals and objectives and significantly augment City staff s ability to successfully provide services to existing and potential businesses. Providing funding for the NCEDC is consistent with the City's partnering approach to economic health where the City invests in others and outside organizations where it can to accomplish goals and objectives. Northern Colorado Economic Development Corporation Presentation to the Fort Collins City Council October 9 , 2007 1 Our objective for this meeting ■ NCEDC Structure Who we are What we do i How NCEDC aligns with City ' s clusters and economic values 2 Our objective for this meeting ■ Update --- what NCEDC is currently doing on behalf of Fort Collins ■ NCEDC funding request 3 The NCEDC ■ NCEDC is a 501 C ( 6 ) , Not-for- profit Corporation . Over 93 % of the NCEDC funding comes from the private sector The NCEDC Mission is : "To sustain and enhance the economic vitality of Northern Colorado while maintaining our environment and quality of life " 4 NCEDC Partnerships ■ City of Fort Collins ■ CSU Office of Economic Development ■ CSU Research Foundation ( CSURF ) ■ Fort Collins Area Chamber of Commerce ■ Fort Collins Convention & Visitors Bureau ■ Downtown Development Authority ■ Fort Collins Technology Incubator 5 NCEDC Partnerships Continued ■ Northern Colorado Bioscience Initiative - Northern Colorado Clean Energy Cluster Small Business Development Center - Larimer County Workforce Front Range Community College State Office of Economic Development 6 Regional Economist Partnership with CSU ■ Completing in - depth analysis of: ■ Health care industry ■ Economic Cluster Analysis ■ Economic analysis of proposed RTA ■ Primary Employment Trends Deliverables Quarterly economic forecasts of region ■ 2008 Regional Economic Summit/ Forecast ■ Economic and Fiscal Impact Model Our Approach NCEDC ' s targeted industry clusters align with Fort Collins Economic Vision Clean Energy Bioscience Computer chip and semiconductor design Analytical instruments & measuring devices 8 Industry Clusters City of Fort Collins Agricultural Technology Computer and Electronics ■ Information Technology ■ Bioscience ■ Clean Energy ■ Uniquely Fort Collins 9 NCEDC has already had notable successes in many of these clusters Computer Chip Design Clean Energy AMD Spirae ■ Intel AVA Solar Biosciences Helped form bioscience Software cluster, created brochure Technigraphic Systems Analytical Instruments and Measuring Devices In -Situ , Inc 10 NCEDC Outcomes Co-founder of Clean Energy Cluster Fort Collins Technology Incubator - - Invests in and is the financial oversight for Brought economist Richard Florida to Fort Collins Following day Florida met with City of Fort Collins Human Rights Office 11 Our Approach Highly tailored to specific communities Recognize each community has unique assets and needs Strengthening Business Relationships — Growing our own 12 Business Retention & Expansion ■ Primary Employers Survey (over 55 companies surveyed ) Gathering business intelligence : - Sharing results with community leaders - Resolving business issues Help create business friendly climate Survey Results Roll - Out - October 31 , 2007 13 Business Retention & Expansion Continued ■ Part of the team to assist with expansions Examples : Intel , DirecTech , AMD 14 Business Retention & Expansion Continued ■ Retaining companies Example : TechniGraphics ■ 100 jobs retained 15 Incentive Negotiations TechniGraphicS INV AVA Solar ■ NCEDC brokered job trag dollars from state ($2 , 000 per employee x 500 jobs = $ 1 million ) Spirae ■ NCEDC secured $ 125K from State ' s Economic Development Commission + $ 100K grant from State ' s Office of Energy Management of Conservation and Energy 16 Business Development ■ Coordination of Targeted Industry Outreach Clean Energy ■ Bioscience ■ Software/ IT/Chip Design ■ Marketing Northern Colorado to : ■ National/ International Markets ■ Site Selection Community V ■ Corporate Executives f ■ Media Outlets — national press 17 Deliberately bringing appropriate companies to Fort Collins - Ongoing business visitations Examples : ■ In -Situ ■ Pelco ■ RDD ■ ELIC ( English Language Institute/China ) 18 Business Development ■ Clearing - house of Regional Economic / Demographic Info . ■ Direct client contact ■ Website ■ Print material ■ Customized information -- ■ Incentive Negotiation ■ Local ,� 5 ■ State ■ Federal ■ Training dollars from state 19 Workforce Development ■ Education & Workforce Committee Convene community , educational & training leaders Primary employers participation Identify workforce skill gaps ■ Example : Nurses , pharmacy technicians , ' ; ' Systems Engineers & Machinists 6 ►� 20 Example of private industry solving their own workforce skill gap issue : NCEDC brokered $ 1 million given by Woodward as an investment to CSU for systems engineers 21 What NCEDC is currently doing on behalf of Fort Collins ? 22 Regional economist : created an Economic and Fiscal Impact Model used on projects such as AVA Solar — saving Fort Collins time and money of approximately $22, 000 23 Fort Collins Results ■ Over the past three years . . . 17 New primary employers announced . 10 in Fort Collins : 59 % of total 2 , 650 new jobs announced . 1 , 950 in Fort Collins : 74 % of total 786 , 814 SF of new space . 558 , 890 in Fort Collins : 71 % of total Avg . Salaries for Fort Collins Jobs . $ 59 , 076 24 2007 Fort Collins Results Total jobs created - 700 Median annual salary - $ 60 , 100 2007 Median salary in Fort Collins - $53 , 918 Total square feet occupied - 168 , 390 _ Private investment - more than $ 15 million * * Full facility and equipment investment from AVA is currently unavailable 25 Fort Collins Results ■ Regional Marketing Plan Industry specific business cases ( example : clean energy ) Highlights unique assets of Fort Collins Involved and supportive of UniverCity initiative Supports existing companies in supply chains and users of existing companies goods and services 26 Regional Results In past 2 . 5 years , NCEDC influenced . Direct jobs : 2 , 650 ■ $ 156 . 5 million in payroll and salaries ■ $ 59 , 076 average compensation per employee Secondary jobs : 5 , 031 ■ $ 193 . 5 million in payroll and salaries ■ $ 38 , 471 average compensation per employee 27 Regional Results In past 2 . 5 years , NCEDC influenced : Total jobs : 7 , 681 ■ $ 350 . 1 million in new payroll and salaries ■ $45 , 591 average compensation per employee ■ + $9 , 000 above average compensation Personal Expenditures total : $ 249 . 6 million 28 Funding Request In 2005 , Fort Collins supported NCEDC and initiatives at $ 50K ■ NCEDC requests funding on par and comparable with 2005 amount Questions ? 29