Title
Fiscal Year 2020-2021 Bioscience Healthcare Strategic Initiative (Ordinance S-46977)
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 2021. Also, request authorization for the City Treasurer to accept funds from the City's BIO Convention partners to offset costs associated with the 2021 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 United States. 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 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. By the end of 2021, more than $3 billion will have been invested in new and expanded bioscience and healthcare facilities, and more than four and a half million square feet of space for discovery, development and care delivery creating more than 7,000 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 Biomedical Campus (PBC) and the 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 planned first phase development on the PBC north of Fillmore Street, the Wexford Science & Technology building. In the Wexford building, ASU will be 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 potential 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 Arizona Bioindustry Association (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 2020-2021.
Another key effort is the promotion of Phoenix's bioscience efforts nationally and internationally by attending the 2021 BIO International Convention in Boston. Due to COVID-19, the 2020 BIO Convention was held virtually with more than 7,200 attendees and 64 countries represented. As a sponsor of Start-Up Stadium, the City of Phoenix was able to 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. CEDD and the Flinn Foundation worked closely with the University of Arizona's College of Medicine - Phoenix, Dr. Frederic Zenhausern, to have a proposed session accepted and be part of the conference called, The Immersive Medicine of the Future. The session featured additional speakers and collaborators who work with Dr. Zenhausern from HonorHealth Research Institute, Microsoft Research and Duke University. Along with CEDD, representatives from the University of Arizona (UA), ASU, AZBio, Wexford Science & Technology, the Flinn Foundation and seven early-stage Phoenix-based biomedical companies joined the delegation. The delegation held more than 200 productive virtual meetings. Attendance at this unique virtual gathering provided valuable networking and partnership opportunities and synergy with the City's attending partners looking to promote their research and products to an international 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 2021 BIO Convention. Preliminary estimates for participation such as booth, sponsorships, advertising, equipment, and shipping costs are approximately $90,000. This includes the one-time purchase of a new booth structure, including design and creation of booth paneling and branding. Staff will also work with industry partners, such as the 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 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 a membership with AZBio and to participate in BIO International 2021 is available in the Genomic Facilities and Operations Fund, with the request not to exceed $105,000 total for both efforts. Funding received from City BIO Convention partners shall reimburse the Genomic Facilities and Operations Fund.
Concurrence/Previous Council Action
This item was recommended for approval by the Workforce and Economic Development Subcommittee at the Sept. 23, 2020, meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Jeff Barton and the Community and Economic Development Department.