Title
Greater Phoenix Economic Council Annual Contract (Ordinance S-47605)
Description
Request to authorize the City Manager, or his designee, to enter into a one-year contract with the Greater Phoenix Economic Council for Fiscal Year 2021-22 for business attraction and development services. Further request to authorize the City Controller to disburse all funds related to this item. The total fee will not exceed $800,200.
Report
Summary
The Greater Phoenix Economic Council’s (GPEC’s) mission is to attract and grow quality businesses and advocate for Greater Phoenix's competitiveness. Its 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 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 2020 population estimate for Phoenix is 1,634,061. Based on this formula, the Fiscal Year (FY) 2021-22 contract amount is $800,200, which will be shared equally by the Aviation, Public Works, Water Services, and Community and Economic Development (CED) departments.
GPEC specifically collaborates with CED every year to generate prospects and attract new business investment from outside the region. As of March, for FY 2020-21, GPEC has helped locate 27 companies to the region, expecting to create more than 5,300 jobs and make capital investments totaling more than $558 million. So far, 14 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, 2021 to June 30, 2022.
Financial Impact
Based on the formula, the FY 2021-22 contract amount is $800,200, which will be shared equally by the Aviation, Public Works, Water Services, and CED departments.
Concurrence/Previous Council Action
The Workforce and Economic Development Subcommittee recommended approval of this item on April 28, 2021, by a vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua, Karen Peters, and Ginger Spencer and the Aviation, Public Works, Water Services and Community and Economic Development departments.