Title
Three-Year Membership with Canada Arizona Business Council (Ordinance S-47191)
Description
Request to authorize the City Manager, or his designee, to pay membership dues to the Canada Arizona Business Council (CABC) for December 2020 through December 2023 in the amount of $25,000 annually, for a total amount not to exceed $75,000. Further request authorization for the City Controller to disburse funds related to this item. Funding is available in the Community and Economic Development Department's budget.
Report
Summary
The City entered into its first one-year membership with the CABC in 2014. A three-year CABC membership, at $25,000 annually, was approved by the City Council in January 2018. With 175+ members, representing the private sector; economic development organizations; municipalities and trade organizations from Arizona and Canada, the CABC focuses on attracting Canadian foreign direct investment to Phoenix's residential and commercial real estate market. In addition, the CABC provides support to any Canadian mergers and acquisitions business, and continued expansion of existing Canadian businesses in the local Phoenix economy.
The work of the CABC has proven to be vital to the economic relationship between Arizona and Canada and has been instrumental in fostering Canadian investment in the Phoenix market. An example of their impactful work includes CABC's facilitation of the adoption by both the Province of Alberta and State of Arizona of a reciprocal judgments agreement, removing impediments to financing for Canadian businesses in Arizona. The CABC is currently assisting in the negotiation of a similar agreement between Ontario and Arizona. In addition, the CABC facilitated introduction of Canadian capital markets interested in investing in Phoenix companies through the Toronto Stock Exchange (TSE), which deals heavily in mining and energy. Total market capitalization of companies listed on TSE exceeds $3 trillion (Canadian).
Canadian visitors account for approximately $2.4 billion in the local economy. The CABC has worked with the airline industry to increase flight service between Canada and Phoenix, and as a result of their efforts, 209 direct flights per week between Canada and Phoenix were available prior to the COVID-19 pandemic. The CABC is currently working to assure the return of these flights to Phoenix as airlines resume service.
Renewal of the CABC membership will continue to provide the City access to critical Canadian foreign direct investment intelligence, data, trends and opportunities to strengthen economic development relationships with potential Canadian investors and businesses. This will further enhance Phoenix's competitive position within the Canadian market.
If approved, the City's thee-year membership will be valid through the following years:
- December 2020-2021
- December 2021-2022
- December 2022-2023
Financial Impact
Membership dues are $25,000 annually, not to exceed a total of $75,000 over the course of three years. Funds are available in the Community and Economic Development Department's budget.
Concurrence/Previous Council Action
The previous three-year CABC membership was approved by the City Council on Jan. 24, 2018, through ordinance S-44209.
Department
Responsible Department
This item is submitted by Deputy City Manager Jeff Barton and the Community and Economic Development Department.