Title
Three-Year Membership with Canada Arizona Business Council (Ordinance S-50428)
Description
Request to authorize the City Manager, or his designee, to pay membership dues to the Canada Arizona Business Council (CABC) for December 2023 through December 2026 in the amount of $25,000 annually, for a total amount not to exceed $75,000. Further request to authorize 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 and again in December 2020. With nearly 100 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.
Arizona exports goods totaling $1.3 billion annually to Canada, with agricultural products, aircrafts and aircraft parts representing the largest volume of exported goods. 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. There are more than 500 Canadian companies in Arizona - the majority of which are in Phoenix. Among these companies are Circle K, Stantec, BMO, Epcor Water Arizona, GardaWorld, Colliers International, Jeld-Wen Windows and Doors, and Coreslab Structures.
Recent efforts to increase foreign direct investment in Phoenix have included CABC coordination of a visit by Arizona legislators to Toronto, Ottawa and Montreal to explore opportunities for investment in infrastructure projects by Canadian pension funds. Currently, Canadian pensions funds have approximately $4 trillion under management. 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.
Over the past three years, CABC has focused significant effort in restoring air service between Canada and Phoenix post-pandemic, and increasing it where possible. Its contributions have supported the restoration and development of 13 service points in Canada, including Calgary, Toronto, Vancouver, Edmonton, and Montreal. Carriers serving the Phoenix metro area include Lynx, Westjet, Flair, Swoop and Air Canada.
Other CABC initiatives focus on workforce development, the return of seasonal visitors, North American supply chain, medical tourism, the future of water resources and mining.
If approved, the City's three-year membership will be valid through December 2026.
Financial Impact
Membership dues are $25,000 annually, for a total amount not to exceed $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 City Council approved the 2020-2023 CABC membership on Dec. 16, 2020 (Ordinance S-47191).
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.