Title
Greater Phoenix Economic Council - Authorization to Add Funding
Description
This report requests the Economic Development and Housing Subcommittee recommend City Council approval to add additional funding to Contract 158892 with the Greater Phoenix Economic Council (GPEC) for business attraction and development services.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
Report
Summary
GPEC's mission is to attract and grow quality businesses in the region and advocate for Greater Phoenix's economic competitiveness. Its efforts include marketing the region, including coordinating regional prospect proposals and real estate tours, domestic and international sales missions, and other strategic activities resulting in business investment in Greater Phoenix.
The City has been a member of GPEC since the organization's inception in 1989. Since 2020, the fee for each GPEC member in Maricopa County is calculated using a rate of $0.4897 per resident, based on the most current population estimates from the Arizona Office of Economic Opportunity. The 2024 population estimate for Phoenix is 1,697,696. Based on this formula, the Fiscal Year (FY) 2025-26 contract amount is $831,362, which will be shared equally by the Aviation, Community and Economic Development (CED), Public Works, and Water Services departments.
GPEC regularly collaborates with CED to generate prospects and attract new business investment from outside the region. As of February 2025, GPEC's efforts this fiscal year have helped locate 29 companies to the region, with the expectation of creating nearly 2,732 jobs and capital investments exceeding $1 billion. To date, nine of those companies have chosen to locate in Phoenix. Over the past five years, Phoenix's return on investment from its partnership with GPEC has been $149 of direct revenue for every $1 invested.
GPEC represents 22 municipalities in the region, as well as Maricopa and Pinal Counties, 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 220 private investors contribute resources to support GPEC's efforts.
Procurement Information
In accordance with Administrative Regulation 3.10, an exception to the procurement process was approved to select this vendor as a Sole Source given its unique role in performing business attraction and development services for the Greater Phoenix region.
Contract Term
On June 28, 2023, City Council authorized a one-year contract with four one-year renewal options. If funding for FY 2025-26 is approved in the amount of $831,362, the second contract option will be exercised, and two one-year renewal options will remain.
Financial Impact
The FY 2025-26 contract amount is $831,362, which will be shared equally by the Aviation, CED, Public Works, and Water Services departments.
Concurrence/Previous Council Action
On June 28, 2023, City Council authorized this contract and funding for first year of the contract in an amount not to exceed $811,450 through Ordinance S-49920. On May 29, 2024, City Council authorized the FY 2024-25 budget in an amount not to exceed $823,701 for the first one-year renewal option through Ordinance S-50895.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua, Ginger Spencer and John Chan, and the Aviation, Public Works, Water Services, and Community and Economic Development departments.