Title
Fiscal Year 2026-27 Bioscience Healthcare Strategic Initiative
Description
This report requests the Economic Development and the Arts Subcommittee (Subcommittee) recommend City Council approval to implement the Fiscal Year (FY) 2026-27 Bioscience Healthcare Strategic Initiative, including participation at the BIO International Convention in 2027 and authorization of an Arizona Bioindustry Association (AZBio) membership for FY 2027-28. Further request the Subcommittee recommend approval to accept funds from the City's Bio International Convention partners to offset costs associated with the 2027 convention expenses, and for the City Controller to disburse funds associated with the request. Funding for the AZBio membership and convention efforts will not exceed $130,000. There is no impact to the General Fund. Funding is available in the Genomics Facilities and Operations Fund.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
Phoenix is one of the nation’s fastest growing hubs for bioscience activity and is now ranked in the Top 20 of U.S. Life Science Markets. CBRE’s annual life science reports ranked Phoenix First in Life Science Job Growth and First in Life Science Graduate Growth Rate among emerging U.S. Life Science Markets. Arizona is now ranked as the second fastest in life science job growth and ranked eighth in the nation for the economic impact of clinical trials. An estimated eighty percent of the state’s clinical trials take place in Phoenix. Much of this success is attributed to Phoenix’s world-class medical centers, institutes of research excellence, research universities, quality community colleges, a growing educated population, a pro-business environment, and the spirit of entrepreneurship and collaboration. 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. By 2026, more than $7 billion has been invested in new and expanded bioscience and healthcare facilities, and more than eight and a half million square feet of primary facility space for discovery, development and care delivery creating more than 15,000 quality jobs for Phoenix residents.
Staff has focused its economic development efforts in the areas of research, development, precision medicine, bio-manufacturing, 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 facilitate the development of a world-class real estate inventory to meet the unique needs of life science companies. This commitment includes support of Phoenix’s four bioscience hubs: Mayo Clinic’s Discovery Oasis, the Phoenix Medical Quarter/Midtown, the Phoenix Bioscience Core (PBC) and the Cotton Center, in addition to other submarkets within the City. As an example of our efforts, CEDD has been working closely with Wexford Science & Technology, to bring prospective tenants to the 850 PBC building and its Connect Labs by Wexford. The National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) is the latest example of a major tenant to lease space in 850 PBC. NIDDK recently moved to its new 35,000 square-foot lab on the seventh floor and Vitalant Biotherapies moved to its 9,000 square-foot lab.
To continue to advance 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 FY 2027-28.
Another key effort is the promotion of Phoenix's bioscience efforts nationally and internationally by attending and exhibiting at the 2027 BIO International trade show to be held in Philadelphia. The 2026 BIO International was held in San Diego, with over 20,000 attendees and 68 countries represented. As a sponsor of Start-Up Stadium, the City was able to kick off the event this year and nominate three Phoenix-based companies that were selected as finalists. These 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 60 attendees. The delegation held more than 400 productive meetings along with continuous engagement with BIO conference attendees in the Phoenix Pavilion. More than 200 people attended the Phoenix Gene-ius Chats Reception featuring Phoenix life science leaders sharing their innovations with the audience. This year the Phoenix pavilion hosted a Memorandum of Understanding (MOU) signing with AZBio and the Taiwan Bio Association. 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 trade show 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 2027 BIO International trade show. Preliminary estimates for participation such as sponsorships, pre- and post-targeted advertising, lead generation/retrieval, equipment, pavilion set-up and shipping costs total approximately $115,000. Staff will continue to work with industry partners and the State to co-locate at the trade show. 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 trade show elevates the City's visibility as a hub for bioscience, building a critical mass of life science 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 2027 will not exceed $130,000 total for both efforts. Funding is available in the Genomic Facilities and Operations Fund. Funding received from the City's BIO International Convention partners will reimburse the Genomic Facilities and Operations Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer and the Community and Economic Development Department.