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HomeMy WebLinkAboutR18-Redevelopment Agency .~ ._~ -~ -- - REl"-. VELOPMENT AGENCY. R:;lUEST FOR {)MMISSION/COUNCIL A~.JION I From: Glenda Saul, Executive Director Subject: ENTERPRISE ZONE _to Redevelopment Agency Date: November 12, 1985 Synopsis of Previous Commission/Council action: 3-19-85 Approval of Application under AB40 3-20-85 Review by Ways and Means Committee 3-21-85 Review by Ways and Means Committee 3-25-85 Council/Commission approval of Enterprise Zone boundaries 4-15-85 Item continued, referred to Ways and Means 5-2-85 Item continued, referred to Ways and Means (C:ont-inllp,; on npyt p~gP___) See Attached Recommended motion: MAYOR AND COMMON COUNCIL APPROVE IN CONCEPT A CONTRACT WITH THE DATA GATHERING CENTER (CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO) FOR THE DEVELOPMENT OF A MARKETING STRATEGY FOR THE ENTERPRISE ZONE ~/~Lt ~J Signature Contact person: GLENDA SAUL Ward: Phone: 383.5081 1,2,3,5,6 Supporting data attached: YES FUNDING REOUIREMENTS: Amount: $ 46,805 Project: EZ No adverse Impact on City: Date: November 18, 1985 r~"ncil Notes: 0777K/ SL Agenda Item No. ~ / <6 - - ---- -- ~ . Glenda Saul, Executive Director CONTINUED FROM PAGE 1 - ENTERPRISE ZONE Synopsis of Previous Commission/Council action (continued): 5-6-85 5-10-85 7-22-85 8-19-85 8-26-85 9-23-85 10-7-85 10-14-85 10-21-85 Resolution 4759 Preapp1ication approved City Resolution 85-163 - Finding of need and authorizing submittal to State Executive Director authorized to negotiate EIR/EIS with URS Reso 4787 authorized execution of contract with URS Resolution 4792 authorized contract with Van Osde1, Dukes, Amis for Final Application Amendment to URS contract authorized City Resolutions 85-405 Allocating housing funds to Enterprise Zone 85-406 Allocating beautification and Employment Linkage funds to Enterprise Zone 85-407 Designating Deputy City Administrator as Zone Coordinator Commission Resolutions 4804 authorizing staff to develop data base agreement 4805 authorizing staff to develop incubator project City Resolutions 85-410 Allocating street improvements 85-411 Directing development of new code designation. Commission Resolutions 4806 Establishing Zone Management Office 4807 Directing development of Marketing Program 4808 Directing development of Export Program City Ordinance 3.18 "Enterprise Zone Incentives" Agency Resolution 4814 Operation Second Chance Technical Assistance Program --...-- . ". .. Glenda Saul, Executive Director ENTERPRISE ZONE 11-1-85 City Resolutions 85-481 Approving Enterprise Zone Application and Authorizing the Executive Director of the Redevelopment Agency to Submit the Application to the State of California 85-482 Formally Receiving Draft Environmental Impact Report/Environmental Impact Statement on Enterprise Zone, and Authorizing Planning Department to Submit Notice of Completion and Seek Comments City Ordinances MC-480 Establishing Incentives to be Granted Certain Businesses and Certain Residential Construction within the Enterprise Zone MC-48l Establishing Incentives to be Granted Certain Bsuinesses and Certain Residential Construction within the Enterprise Zone, and Declaring the Urgency Thereof 0777K/SL 11/18/85 -- -~ -- cn~" OF SAN BERNARDI:;'O - REQUF'~,T FOR COUNCIL AC~ON I STAFF REPORT On October 7, 1985, the Commission adopted Resolution 4804, authorizing staff to negotiate an agreement with the Data Gathering Center (California State University, San Bernardino) for the development of a needs assessment study for the Enterprise Zone. As a result of several meetings between Agency staff and the Data Gathering Center, a Draft Marketing Plan outlining objectives and methods was developed. Under the terms of the proposed contract, in Phase 1 of the program, the Center will determine the particular needs of the Enterprise Zone, identify industries which can meet those needs, target specific companies likely to move to the Zone, and develop a marketing strategy to attract those companies. The marketing strategy will also include a plan to sell the Enterprise Zone concept to Zone residents. Phase II of the program will entail the monitoring of the marketing strategy to determine its effectiveness and recommend any appropriate modifications. The Center estimates Phase I will cost approximately $46,800. Phase II will be charged on the basis of time and materials. Staff recommends the Commission approve the concept of this agreement and instruct staff to prepare the contract documents for Commission Approval. 0777K/OJ 11 /18/85 75-0264 -- .-- -~~- ,---.. .- bRAt r I/~~-F ...~ ....... INl'RIXJCTICN 'Ire fOllawing prqx:>sal includes the research design for I:oth a narketing plan for the City's Enterprise Zone and an evaluatien plan for detenninin:J the SU<XleSS (or lack thereof) of the Enterprise Zone in accarplishing its stipulated objectives. 'mE MARI<E:TIN; PIAN '!he stipulated objectives of the City's Enterprise Zone l\cx.x)rding to the City's Draft Jlpplication for state funding - inclWing the Environrrental InpactjPep::>rt and Statment - and en the basis of preliminary o::>nversations with rrenbers of the City's IEdeveloprent Departnent and other interested parties, the stipulated objectives of the Enterprise ZOne are: 1. to reduce 1.II'lE!1Ploynent in the zone 2. to increase the net grcMth of locally owned rosiness in the zone 3. to increase the net grcMth of rosiness in the zone 4. to create rew rousing in the zone 5. to renovatel:oth existing housing and carnercial establishnents in the zone 6. to prarote outside inves1::nents in the area encx::rrpassed by the zone 7. to reduce crirre in the zone 8. to produce a greater feeling of scx:ial cohesion, i.e., o:mrnmi.ty, in the zone 9. to increase per capita inccrre in the zone, and 10. to accarplish these objectives within the pararreters of the Envi.ronrrental Irrpact Rep::>rtjStatment so as not to adversely affect either the zone or other areas in the city. 'Ire Enterprise Zone Concept: Underpinning the Enterprise ZOne CC8'lOept is a relatively sinple hypothesis: an increase in appropriate rosiness and ccmrercial ventures will produce the desired effect in the zone, that is, an t B + t01~ 0 --'" -. .. - -2- (intended objectives). In order to en=age rosiness and other ccmnercial ventures in the zone, the City, in light of the Enterprise zone oonoept, has already o:mnitted itself to tax, loan, and other investIrent incentives. In this sense, such ecxmcrni.c incentives are part of the marketing plan for the Enterprise Zone. Or to canceptua1ize it differently, the assurrption is that a Marketing Plan (M.P.) (inclu:l.ing ecancrnic incentives) will prcnote b..1siness and other cc:rmercial ventures whidl will, in turn, produce the intended objectives, i.e., M.P........' B + '" CJ~ o. Marketing Cbjecti ves 'lbe objectives of the Marketing Plan are: 1. to prcm:Jte local b..1sinesses within the zone and to enoourage camu.m.ity S\JHlOrt for such b..1sinesses, and 2. to attract outside b..1siness, to the zone which will have a positive inpact on the zone. Marketing Pesearch Cbjectives In order to fonnulate a plan for successfully marketing the City's Enterprise Zone, marketing research is necessary to: 1. Identify existing and potential patterns of a:msurrer behavior, including needs and wants within the zone, and to obtain infonnation ooncerning Ix:M citizens of the zone could be en=ged to support local rosiness in the area 2. identify existing locally owned b..1siness to obtain infonnation oonoerning their "needs and wants" so as to strengthen locally o,.med b..1siness inside the zone 3. identify potential entrepreneurs inside the zone to obtain infonnation ooncerning Ix:M they might be encouraged to start a b..1siness in the zone 4. target b..1sinesses altside the zone, i.e., Greater San Bernardino, Inland Ehpire, and outside the area - to obtain infonnation for ~ -- , -3- ~ - marketing the zone to such organizations 5. identify key zone <:pinion-leaders in order to use their interpersonal =ntacts as natural candu.i ts for marketing the zone to residents of the area. Iesearch Design for Gathering Prinary Marketing Iesearch Data AltOOugh many of the alxlve research goals nay be aca::Ilplished using se=ndary data, i.e., data already available, sore of the marketing objectives require research that will yield "new" or prinary data. '!his section discusses the procedures by which the Data Gatrering Center proposes to obtain such prinary data. In order to acoc:.nplish research objective 1, identifying current an<:. potential CX>I'lS1.llter behavior within the zone, and obtaining infonnation fran zone residents which will enable a marketing plan to be devised which will encourage residents to support zone enterprises, sociaretric analysis (Sl'lOWball sarrpling) will be €llployed. N... number of zone residents, selected on the basis of their kn<:Mledge alout the zone and/or their influenoe in the zone, will be initially intervi~. 'lb:!se interviews will entail personal interviews, cx;np:)sed of toth open and closed-ended questions, designed to elicit the desired marketing infonnation. As part of this questionnaire, the zone leaders will be asked to ncrninate additional zone influentials/opinion leaders wtx:> in turn will be interviewed (using a version of the initial questionnaire). (If warranted, a third stage of interviews, of people ncrninated as influential or <:pinion leaders by preceding people will also be lD1dertaken.) nus procedure will allow the Data Gathering Center not only to obtain infonnation alout =nsurrer behavior within the zone, rot it will also identify key carrnunity leaders for marketing the Enterprise Zone =ncept (research objective 5). A quota sanpling, stratified on successful-\IDsuccessful J::m;inesses, type, ethnicity, and size will be used to obtain the relevant marketing infonnation -- -- --- -- -- i. .' ... -4- fran actual and potential entrepreneurs within the zone (research objective 2 and 3). 'Ihe entrepreneurs will be personally interviewed using questionnaires cxnposed of both open-en3ed and closed-en3ed itans. , Based on narketing expertise, a quota sampling of potential. l:usinesses for the zone or for Greater San Bernardino area will be drawn and teleph:Jne inter- views oonducted with the decision-makers of such organizations (research objective 4). ~stions will be designed to elicit narketing infonnation related to attractDl' such l:usinesses to the zone. 'lllE EVAllIATIOO PIAN As part of the initial study, renceforth referred to as Phase 1 of the prcposed project, relevant data will be obtained, using seamdazy data,when available, as baseline infonnation by which the Enterprise ZOne project may be evaluated. SUch data will include, wt not limited to, =irre statistics in the area, unerployment rates, per capita i.ncare, h:>using starts, number of locally CMned l:usinesses in the zone, etc. --.-- .~-- ---- -- .. ?^~e .:zr ,. The second part of the study entaIls an ongoIng monItorIng of the marketing plan for Its effectiveness In meeting Its specIfIed objectIves. After the fIrst year of ImplementatIon of the marketIng plan, an evaluatIon wIll be undertaken and each succeedIng year addItIonal evaluatIons wIll be performed. (The evaluatIon report wIll Include recommendatIons when approprIate). At the end of three years of ImplementatIon, a final evaluation of the EnterprIse Zone wIll be conducted and an evaluatIon report, Including recommendatIons, wIll be submItted to the EnterprIse Zone Manager. The fInal price of the project wIll be based on an approprIate tIme/cost factor agreed upon by the Data GatherIng Center and the Enterprise Zone Manager.