Title
Fiscal Year 2019-20 Bioscience Healthcare Strategic Initiative (Ordinance S-46111)
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 2020. Also, request authorization for the City Treasurer to accept funds from the City's BIO Convention partners to help offset costs associated with the 2020 Convention expenses, and for the City Controller to disburse funds associated with this request. There is no impact to the General Fund. Funding to participate with AZBio and BIO International is available in the Genomics Facilities and Operations Fund, with the request not to exceed $90,000 total for the membership and convention efforts.
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 those 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 industry in Phoenix. Over the next two years, more than $3 billion will be invested in new and expanded bioscience and healthcare facilities, and more than four million square feet of space will be added 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 that 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. 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 Wexford Science & Technology building include bioscience companies and a co-working accelerator lab that would generate new companies and jobs in Phoenix.
An additional investment is the request 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 is in the unique position to provide 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 2019-20.
Another key effort is the promotion of Phoenix's bioscience efforts nationally and internationally by attending the 2020 BIO International Convention in San Diego. At the 2019 BIO Convention, over 17,000 attendees from 49 states and 65 countries attended. 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. Along with CEDD, representatives from the University of Arizona (UA), AZBio, Wexford Science & Technology, the Flinn Foundation and four early-stage Phoenix-based biomedical companies joined the delegation. The delegation held more than 200 meetings and fielded hundreds of inquiries about Phoenix’s dynamic bio industry. Attendance at this unique gathering provides valuable networking and partnership opportunities and provides 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 2020 BIO Convention. Preliminary estimates for participation such as booth, sponsorships, advertising, equipment, and shipping costs are approximately $75,000. If approved, staff will work with industry partners, such as the University of Arizona, Arizona State University, and the Translational Genomics Research Institute (TGen) to co-locate at the convention. This shared effort may allow the City to reduce its costs 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 such as the Greater Phoenix Economic Council 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 participate in BIO International 2020 is available in the Genomic Facilities and Operations Fund, with the request not to exceed $90,000 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 at the Workforce and Economic Development Subcommittee meeting on Sept. 25, 2019, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Karen Peters and the Community and Economic Development Department.