Title
Local First Arizona Incubator Kitchen Sponsorship (Ordinance S-48238)
Description
Request to authorize the City Manager, or his designee, to approve a sponsorship to expand Local First Arizona’s incubator kitchen concept to the Rio Salado College Thomas campus located at 3631 W. Thomas Rd., and to execute a Sponsorship Agreement, or other instrument deemed appropriate, with Local First Arizona (LFA), or its City-approved designee. Further request to authorize the City Controller to disburse all funds related to this item. Funding for this one-time sponsorship will not exceed $80,000. There is no impact to the General Fund. Funding is available through the City’s allocation of the American Rescue Plan Act (ARPA) funding received from the federal government and is under the City's Small Business Workforce Program category.
Report
Summary
LFA is a nonprofit organization committed to community and economic development throughout Arizona. LFA's work connects people, locally-owned businesses, and communities for meaningful actions that build a diverse, inclusive and prosperous Arizona economy. Through its incubator kitchens in Mesa and south Phoenix, LFA provides eligible food entrepreneurs looking to start or grow their businesses with access to fully equipped and licensed kitchen space at a low cost. LFA broadly defines food entrepreneurs as restaurateurs, food truck operators, bakeries and caterers. To be eligible to use the incubator kitchen, a food entrepreneur's place of business or home-based business must be located in a Qualified Census Tract.
For this opportunity, LFA is partnering with Rio Salado College, a Maricopa Community College, to amplify efforts to grow food businesses in west Phoenix with a new incubator kitchen facility. Rio Salado has an existing kitchen at 3631 W. Thomas Rd. that does not currently meet building code requirements. The City's sponsorship will fund a new walk-in cooler as part of the renovations that will annually provide approximately 125 entrepreneurs with the physical resources needed to grow their businesses.
The development of this new incubator kitchen facility will be leveraged to implement business development and technical assistance programs aimed at rebuilding the restaurant industry and strengthening the food economy in an under-resourced area of Phoenix. This location will also host LFA's Restaurant Startup Boot Camp, a seven-week course aimed at strengthening existing food businesses to ensure profitability, consistency, and growth. Participants will receive education and mentorship on a variety of topics related to developing a profitable business such as food costing, menu planning, marketing, human resources, and branding. The Restaurant Startup Boot Camp enables entrepreneurs to develop their products and grow their client bases in an affordable setting with both staff and peer-driven feedback and coaching. Rio Salado College will provide the existing building, classroom space, and community college credit for students who complete the Restaurant Startup Boot Camp course.
This sponsorship, which will include standard city terms and conditions, embodies the Community and Economic Development Department's mission to stimulate economic activity by offering a diverse range of value-added business and workforce solutions to build, revitalize, and sustain a quality community for Phoenix businesses and residents. Furthermore, this investment aligns with the work of the Phoenix Business and Workforce Development Board and its support of and focus on entrepreneurship training services and opportunities in Phoenix.
Contract Term
The Sponsorship Agreement with LFA will be for one year after initiation of services.
Financial Impact
The City's one-time sponsorship payment to LFA for the cost of a new walk-in cooler will not exceed $80,000. There is no impact to the General Fund. Funding is available through the City’s allocation of ARPA funds received from the federal government.
Location
3631 W. Thomas Rd.
District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.