Title
Fiscal Year 2022-23 Bioscience Healthcare Strategic Initiative (Ordinance S-49155)
Description
Request to authorize the City Manager, or his designee, to implement the Bioscience Healthcare Strategic Initiative, including authorization of an Arizona Bioindustry Association (AZBio) membership and participation at the BIO International Convention in 2023. Also, request authorization for the City Treasurer to accept funds from the City's BIO Convention partners to offset costs associated with the 2023 Convention expenses, and for the City Controller to disburse funds associated with this request. There is no impact to the General Fund. Funding is available in the Genomics Facilities and Operations Fund, with the request not to exceed $105,000.
Report
Summary
Phoenix has grown to be a hub of bioscience activity in the Southwestern U.S. CBRE, a national commercial real estate firm, ranked Phoenix fifth in the nation as an Emerging Life Science Market in their 2020 annual U.S. Life Science Report and first for Life Science Job Growth in Emerging Life Science Markets in their 2021 report. Much of this success is due to Phoenix’s world-class medical centers, innovative research institutions, pro-business environment, a growing educated population, dedicated universities and community colleges, and the spirit of entrepreneurship. In order to build upon these strengths, staff is continuing to implement a strategic plan introduced in 2018 designed to grow, strengthen and sustain a healthy bioscience industry. Since the launch of this effort, there has been an acceleration of investment and growth in the bioscience industry in Phoenix with more than $3.75 billion invested in new and expanded bioscience and healthcare facilities by the end of 2022. The results are more than 5.7 million square feet of primary facility space for discovery, development and care delivery creating more than 9,000 jobs for Phoenix residents.
Staff has focused its economic development efforts in the areas of research, development, precision medicine, healthcare delivery, health-tech and education. Focusing on these areas strengthens and solidifies Phoenix as a leader in the nation’s bioscience healthcare industry. The Community and Economic Development Department (CEDD) will continue to ensure there is a world-class real estate inventory that meets the unique needs of bioscience companies. This commitment includes support of the downtown Phoenix Bioscience Core (PBC) and Discovery Oasis (the former Arizona Biomedical Corridor), in North Phoenix, in addition to other submarkets within the City. Specifically, CEDD has been working closely with Arizona State University (ASU) and its development partner, Wexford Science & Technology, to bring prospective tenants to the first phase development on the PBC north of Fillmore Street, the 850 PBC building. In the 850 PBC building, ASU is a major tenant in the building along with the expansion of the Center for Entrepreneurial Innovation with its new LabForce program to train individuals with the skills needed to work in a lab setting. Other tenants within the new building include bioscience companies and a co-working accelerator lab that will generate new companies and jobs in Phoenix.
In order to maintain the City's position in the bioindustry, CEDD is requesting to continue the City's annual membership with the AZBio, the only statewide organization exclusively focused on building Arizona’s bioindustry. AZBio is committed to building a top-tier life science industry in Arizona and is a critical partner for Phoenix. As specialists, AZBio provides industry insight, programs specifically designed for life science organizations, visibility into investment opportunities, and a voice for the industry in the media, across the community, and with elected leaders and government agencies at the local, state, and federal levels. The AZBio annual membership cost is $15,000 for Fiscal Year 2022-23.
Another key effort is the promotion of Phoenix's bioscience efforts nationally and internationally by attending the 2023 BIO International Convention to be held in Boston. The 2022 BIO Convention was held in person for the first time since the beginning of COVID, with more than 14,000 attendees and 64 countries represented. As a sponsor of Start- Up Stadium, the City of Phoenix was able to kick off the event this year and nominate three Phoenix-based companies that were selected as finalists. These three early-stage companies were able to engage with key members of the investment community, venture philanthropy groups, and BIO attendees. This year’s Phoenix delegation included 52 attendees, representing 31 Phoenix companies and organizations. The delegation held more than 300 productive meetings along with continuous engagement with BIO conference attendees in the Phoenix Pavilion. More than 200 people attended Mayor Gallego’s Rapid Fire, Fireside Chat featuring 12 Phoenix life science leaders sharing their innovations with the audience. Attendance at the event provided valuable networking and partnership opportunities and synergy with the City's attending partners looking to promote their research and products to a global audience. The knowledge and contacts generated by attending this convention will be used in communicating the City's competitive advantage, existing ecosystem and resources in Phoenix to attract and grow companies in this industry to thrive and generate quality jobs for the community.
Planning is currently underway, subject to City Council authorization of funding, for the 2023 BIO Convention. Preliminary estimates for participation such as sponsorships, advertising, equipment, and shipping costs total approximately $90,000. Staff will also work with industry partners, such as the University of Arizona (UA), ASU, and the Translational Genomics Research Institute (TGen) to co-locate at the convention. This shared effort may allow the City to reduce its costs and boost visibility while assisting its partners in promoting Phoenix.
These continued efforts enable CEDD staff to showcase Phoenix's citywide assets and ensure success of future projects. CEDD and its partners continue to generate qualified prospects to create a pipeline of businesses considering expansions and/or relocations to Phoenix through a multi-faceted marketing approach targeted at this industry. Phoenix's involvement and partnership with AZBio and the BIO International Convention elevates the City's visibility as a hub for bioscience, building a critical mass of bioscience and healthcare-related companies and attracting and developing top talent vital to sustain the long-term growth of this thriving industry.
Financial Impact
There is no impact to the General Fund. Funding for the AZBio membership and to participate in BIO International 2023 will not exceed $105,000 total for both efforts. Funding is available in the Genomic Facilities and Operations Fund. Funding received from the City's BIO International Convention partners shall reimburse the Genomic Facilities and Operations Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Economic Development and Equity Subcommittee at the Nov. 1, 2022 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.