Title
Authorization to Enter into Contract with the Greater Phoenix Economic Council (Ordinance S-48666)
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 (FY) 2022-23 for business attraction and development services. Further request to authorize the City Controller to disburse all funds related to this item. The contract will not exceed $798,306.
Report
Summary
Greater Phoenix Economic Council's (GPEC) 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 2021 population estimate for Phoenix is 1,630,195. Based on this formula, the FY 2022-2023 contract amount is $798,306, 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 April 2022, GPEC has helped locate 38 companies to the region, expecting to create more than 8,628 jobs and make capital investments totaling more than $2.9 billion. 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 contract will begin on or about July 1, 2022 to June 30, 2023.
Financial Impact
The FY 2022-2023 contract amount is $798,306, which will be shared equally by the Aviation, Public Works, Water Services, and CED departments.
Concurrence/Previous Council Action
This item was recommended for approval by the Economic Development and Equity Subcommittee at the April 27, 2022 meeting by a vote of 4-0.
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.