Title
Greater Phoenix Economic Council Annual Contract
Description
This report requests the Economic Development and Equity Subcommittee recommend City Council approval to enter into an agreement with the Greater Phoenix Economic Council. The cost for Fiscal Year 2022-23 will not exceed $798,306.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Greater Phoenix Economic Council's (GPEC) mission is to attract and grow quality businesses and advocate for Greater Phoenix's competitiveness. GPEC's efforts include marketing the region, coordination of regional prospect proposals and real estate tours, domestic and international sales missions, and other strategic activities resulting in business investment in the region.
The City of Phoenix has been a member of GPEC since the organization's inception in 1989. The annual fee for each GPEC member in Maricopa County is calculated using the per capita rate of $0.4897, which is the same as last year, and is based on the most current population estimates from the Arizona Office of Economic Opportunity. The 2021 population estimate for Phoenix is 1,630,195. Based on this formula, the Fiscal Year (FY) 2022-23 agreement amount is $798,306, which will be shared equally by the Aviation, Public Works, Water Services, and Community and Economic Development departments.
Staff recommends City Council approval to enter into a one-year contract with GPEC for FY 2022-23 for business attraction and development services. GPEC specifically collaborates with the Community and Economic Development Department every year to generate prospects and attract new business investment from outside the region. To date for FY 2021-22, GPEC has helped locate 38 companies to the region, expecting to create more than 8,628 jobs and make capital investments totaling nearly $2.90 million. So far, 12 of those companies have chosen to locate in Phoenix.
GPEC represents 23 municipalities in the region including Maricopa County and conducts a variety of diverse and value-added services and activities on behalf of its members. In addition to the public sector members, more than 170 private investors contribute resources to support GPEC's efforts.
Contract Term
The term of this one-year contract is July 1, 2022 to June 30, 2023.
Financial Impact
Based on the formula, the FY 2022-23 contract amount is $798,306, which will be shared equally by the Aviation, Public Works, Water Services and Community and Economic Development departments.
Department
Responsible Department
This item is submitted by Deputy City Managers Ginger Spencer, Mario Paniagua and Karen Peters, and the Aviation, Public Works, Water Services and Community and Economic Development departments.