Title
Authorization to Fund Business Attraction and Economic Development Services Contract with Greater Phoenix Economic Council
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 2023 population estimate for Phoenix is 1,682,053. Based on this formula, the Fiscal Year 2024-25 contract amount is $823,701, which will be shared equally by the Aviation, Public Works, Water Services, and Community and Economic Development (CED) departments.
GPEC regularly collaborates with CED to generate prospects and attract new business investment from outside the region. As of February 2024, GPEC's efforts this fiscal year have helped locate 31 companies to the region, with the expectation of creating nearly 4,321 jobs and capital investments exceeding $28 billion. To date, eight of those companies have chosen to locate in Phoenix.
GPEC represents 23 municipalities in the region, including Maricopa County, and conducts a variety of services and activities on behalf of its members. In addition to the public sector members, more than 190 private investors contribute resources to support GPEC's efforts.
Procurement Information
In compliance with City of Phoenix 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 economic development services for the Greater Phoenix region.
Contract Term
On June 28, 2023, City Council authorized staff to enter into a contract with four one-year renewal options. If funding for Fiscal Year 2024-25 is approved in the amount of $823,701, the contract will be renewed, and three one-year renewal options will remain.
Financial Impact
The Fiscal Year 2024-25 contract amount is $823,701, which will be shared equally by the Aviation, Public Works, Water Services, and CED departments. Staff will return to City Council for additional funding authorizations prior to each renewal as the annual population projections are determined each year.
Concurrence/Previous Council
On June 28, 2023, City Council authorized staff to enter into the contract. Funding was authorized for the first year of the contract in an amount not to exceed $811,450.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan, and the Community and Economic Development, Aviation, Public Works and Water Services departments.