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HomeMy WebLinkAboutEconomic Development ReportECONOMIC DEVELOPMENT PARTNERSHIP CHAMBER OF COMME This document presents an up to date report to the City of National City's Community Development Commission and its Board of Directors on economic development projects implemented by the National City Chamber of Commerce in partnership with the City of National City. Economic Development Programs Economic Development Partnership REPORT TO CITY COUNCIL, CITY OF NATIONAL CITY APRIL 19, 2011 AGREEMENT OVERVIEW On September 16, 2008, the Community Development Commission of the City National City (CDC) voted to approve the execution of an Agreement with the National City Chamber of Commerce (NCCC) to administer the City's Economic Development Programs for $50,000 and up to $70,000 to retire the debt on the Chamber's office building. On March 12, 2009, the CDC entered into an agreement with the National City Chamber of Commerce, a 501 (c) (6) non-profit organization, and the National City Chamber of Commerce Foundation, a 501 (c) (3) non-profit organization. The National City Chamber of Commerce agreed to provide economic development services for businesses located in the City of National City. Alfredo Ybarra, Community Development Manager for the City's Housing and Grants Division is the Project Coordinator for the CDC. Jacqueline L. Reynoso is the Project Director for the National City Chamber of Commerce. On January 28, 2010, the CDC issued an extension to the agreement between the CDC of the City of National City and the National City Chamber of Commerce until June 30, 2010. A second extension was granted on July 20, 2010 extending the agreement until June 30, 2011. At the sole discretion of the CDC Executive Director, this agreement may be extended for an additional 48 months. REPORT OVERVIEW This report reflects the Chamber's administrative activity from September 21, 2010 to April 1, 2011. City of National City budget cuts have resulted in program eliminations including the San Diego State Technical Assistance Program and the Economic Development Loan Program. These programs were previously administered by the NCCC. They have been suspended as of June 30, 2010. Since then, the Chamber has focused on administration of the Enterprise Zone program and Business Outreach Attraction and Retention (OAR). The NCCC has also maintained an active partnership with the City of National City on other economic development initiatives including special events, community marketing and promotion, development of the "National City Green Initiative", and policy advocacy. Per the Agreement with CDC, the next report will be submitted to City Council in September of 2011. San Diego Regional Enterprise Zone Program Program Summary The San Diego Regional Enterprise Zone (SDREZ) was established in 2006. It is a regional economic development program incorporating portions of the City of San Diego's Third, Fourth, Seventh and Eighth Council Districts, a significant portion of the City of Chula Vista and the majority of the City of National City. The major benefits of the Enterprise Zone Program are the tax savings on California business income tax: Page 1 Economic Development Programs • Sales or Use Tax Credit: A tax credit against the purchase of new manufacturing, assembly, data processing or communications equipment equivalent to the amount of sales or use tax, or up to $1.35 million annually. • Hiring Credit: A tax credit on up to 50 percent of the wages to qualified new employees over a five-year period (up to 50 percent in the first year, 40 percent in the second year, etc.). This credit could exceed $37,000 per eligible employee. • Accelerated Depreciation Deduction: The option to accelerate depreciation on business property. A business may treat 40 percent of the cost of qualified property as a business expense in the first year it is placed into service for a maximum deduction of $20,000 per year, whichever is smaller. • Net Interest Deduction for Lenders: Allows lenders a deduction on the net interest earned from loans made to Enterprise Zone businesses. Qualified loans include business loans, mortgages and loans from noncommercial sources. Program Update Enterprise Zones are currently slated for elimination under the Governor's Budget. The proposal specifically would eliminate these tax benefits, both for newly earned credits and deductions and for credits that have been earned in prior years, but have not yet been used. Since state Republicans blocked the proposal, supporters of the incentives have received a breather until this November, when it could go on the ballot. Administration: The Enterprise Zone program is a business recruitment and retention tool. The NCCC serves as a direct liaison to CDC/ Cty staff and SDREZ team partners including representatives from the City of Chula Vista, San Diego, and the San Diego Unified Port District. NCCC works collaboratively with City staff on business recruitment efforts including planning and implementation of City tours, review of City business incentives, presentations to prospective businesses, and follow up on business recruitment efforts. Chamber staff responds to all program inquiries via email, phone, written correspondence, site visits, one on one consultation, and workshops/ presentations. Outreach: Since the fall of 2009, the NCCC has provided program outreach to local businesses throughout National City, as well as to prospective businesses interested in relocating to National City. The NCCC actively markets the program to National City businesses through monthly mailers, Chamber Newsletter monthly membership outreach walks, Chamber breakfast meetings, Chamber website, and Membership Orientation workshops. Program outreach is not limited to Chamber members; it is also promoted to non-members at every Chamber and community event in National City such as Automobile Heritage Day, Salute to Navy, Taste of National City, and at various networking events throughout National City and the San Diego region. Policy Advocacy: The NCCC has been aggressive in fighting to preserve the enterprise zone program as a Business Attraction and Retention tool in National City. The following efforts have been undertaken to save the program from state elimination: January 1 3, 2011, 8:00 am - Presented Governor's Proposal to Economic Development Committee. Committee supported an Immediate Call to Action to protect Enterprise Zones. Direction to take urgent action issued by Chairman Frank Plant. January 13, 2011, 8:24 am - Issued a White Paper to local chambers on the impact of the Governor's Proposal on National City and requested a collective organizing effort to influence state legislators to preserve both the Enterprise Zone and Redevelopment funds. Page 2 Economic Development Programs February 10, 2011, 8am — Presentation given by "Communities to Save Enterprise Zones" to Economic Development Committee. Motion to support advocacy efforts to preserve EZ. February 10, 2011 — Letters issued to Senator Juan Vargas and Assemblymember Ben Hueso urging them to Support Enterprise Zones February 1 1, 201 1, 9am — Joint Conference Call led by SCEDC to discuss the Governor's Enterprise Zone Proposal with South Bay Chambers. February 18, 2011, 3:30pm — SCEDC Meeting with Assembly Member Ben Hueso February 18, 2011, 7:30 pm — AM 600 KOGO News Radio Interview with Chris Reed (17.30 minutes into segment below) http: //a 1 135.g.akamai.net/f/ 1 135/ 18227/ 1 h/cchannel.download.akamai.com/ 18227/podcast/SANDIEGO- CA/KOGO-AM/02-18-1 1 7pm.mp3?CPROG=PCAST&MARKET=SANDlEGO- CA& NG_FORMAT=&SITE_ID=670&STATION_1D=KOGO- AM&PCAST AUTHOR=am_600_KOGO&PCAST CAT=Tatk_Show&PCAST TITLE=Top_Story March 3, 2011, 2:15 p.m. to 2:45 p.m. — Press Conference at NASSCO organized by Californians for Jobs and Safe Communities. March 4, 2011, 11:30 am — SCEDC Meeting with Assembly member Marty Block March 4, 2011, 2:00 pm — SCEDC Meeting with Senator Christine Kehoe March 8, 2011 — Lobbying Trip to Sacramento. Met with Michael Cohen, Chief Deputy Director with the California Department of Finance; Senator Ellen Corbett (D-San Leandro); Senator Price (D-Los Angeles); Senator Ted Lieu (D- Torrance); Assemblymember Lora (D-Southgate); Assemblymember Toni Atkins (D-San Diego); Assemblymember Henry Perea (D-Fresno); Senator Negrete McLeod (D- Montclair); ;Senator Lou Correa (D-Santa Ana); Senator Joel Anderson (R-La Mesa); Senator Ron Calderon (D-Montebello); Assemblymember Tony Mendoza (D-Artesia); Assemblymember Nora Campos (D-San Jose); Assemblymember Manuel Perez (D-Imperial Valley) Output: Over 90% of National City business quality for the Enterprise Zone tax credits. If the current expansion application submitted to the California Department of Housing and Community Development is approved, it is expected that nearly 99% of National City's commercial and industrial areas will qualify for the state tax credits. Since October of 2010, the NCCC has conducted 4 workshops reaching 185 business contacts. Approximately 700 businesses have received information on the Enterprise Zone program on a monthly basis. Table 1 below shows a list of presentations conducted between October 1, 2010 and April 1, 2011. Page 3 Economic Development Programs Table 1: Enterprise Zone presentations conducted between October 1, 2010 and April 1, 2011 Title Presenter(s) Location Date Attendance Enterprise Zone Workshop Cal Tax Group NCCC Conference Room, 901 National City Blvd., National City, CA 91950 10/24/2010 15 Business Credit Workshop NCCC/ SCEDC/ Chamber Partners South County Regional Education Center, 800 National City Blvd., National City, CA 91950 1 2/7/2010 85 "The Smart Way to Grow Your Business" workshop San Diego Workforce Partnership & Comprehensive Training Systems Clarion South Bay, 700 National City Blvd., National City, CA 91950 1 /28/1 1 52 "Smart Business Tax Tips and IRS Fundamentals" IRS & NCCC Clarion South Bay, 700 National City Blvd., National City, CA 91950 2/18/11 33 TOTAL 185 From October to December 2010, 103 hiring credit voucher applications were approved in National City. During that period, 14 new positions were created by companies submitting hiring credit vouchers and 89 positions were retained. The average hourly rate reported for qualifying hiring tax credit vouchers was $12.40, up $3.07 from the last report. Based on the average hourly rate, the potential first year in Enterprise Zone tax credits for community investment by National City businesses is approximately $1.2 million. Table 2 below shows a summary of Hiring Credit Voucher Activity from 2008-2010. TABLE 2: Hiring Credit Voucher Activity (2008-2010) Year Number of Companies Submitting Vouchers Vouchers New Positions Retained Positions Approved Page 4 Economic Development Programs Business Outreach Attraction and Retention (OAR) Program Summary One of the key components of any business retention strategy is business outreach. The Chamber conducts business outreach to new employers in the City. On October 5, 2010 the City of National City and Chamber of Commerce announced an outreach program for new businesses to be kicked off in January, 2011. The program, called Business OAR, underscores National City's strong commitment to the business community and acknowledges the importance of business to the community's well-being. Administration: Effective January 2011, the NCCC sends out a welcome packet to all new businesses with a welcome letter from both City Council and the Chamber. Information provided includes Enterprise Zone tax credit incentives, contact information for City departments and other essential business contacts such as utility contacts, information on how to do business with the City and/or participate in City functions and events, 2011 Community and Business Directory, information on services provided by the National City Chamber of Commerce, and a map of the City. Moreover, we have established an ongoing partnership with City Hall to identify expansion possibilities, provide resource materials to the City's business community, conduct small business workshops, provide access to lender information, and promote a "business friendly" atmosphere. NCCC staff invites all newly registered businesses to attend a quarterly orientation meeting at the Chamber Conference room to learn more about business resources. Each new business receives a follow-up phone call and a personal invitation to attend a chamber breakfast meeting. Breakfast meetings are attended by City management, Mayor and Council. These gatherings present great business development and networking opportunities for new and existing businesses. Businesses Reached: In January 2011, NCCC reached 53 new businesses and in February, we reached 20 new businesses. We have gone beyond conducting outreach to just new employers. NCCC works with the City and other regional partners to reach out to prospective businesses thinking of locating to National City, and existing businesses that require business assistance. Below are NCCC activities carried out in partnership with the City of National City that benefit businesses. COMMUNICATION WITH CITY OF NATIONAL CITY • Standing Meetings with CDC Director Brad Raulston (Mondays at 12 noon) to discuss partnership goals and maintain status updates on City/ NCCC projects. • Email updates to City Management and City Council on relevant business issues, news, special events, etc. • One on one meetings with City Council, as needed, to provide briefings on NCCC programs and business issues. CHAMBER COMMITTEES WITH ACTIVE CITY REPRESENTATION • Economic Development Committee — The Economic Development Committee of the National City Chamber of Commerce focuses on promoting economic development in National City through the development and implementation of projects, programs, and policies that stimulate economic growth and prosperity, enhance Page 5 Economic Development Programs community development initiatives, leading to improved quality of life. This committee is the legislative and regulatory advocate for businesses at the local, state, and federal levels. The Committee reviews legislation, supports pro -business policies and actively represents Chamber members. Meets Second Thursdays (8am- 9am). Chair: Frank Plant, San Diego Cold Storage. • The following City representatives participate on the Economic Development Committee: + Mayor Ron Morrison ❖ Councilwoman Mona Rios ❖ Chris Zapata, City Manager ❖ Brad Raulston, Director, Development Services • Special Event Committees — The Special Event Committees of the National City Chamber of Commerce are tasked with organizing the Chamber's annual events including Automobile Heritage Day, Taste of National City, Golf Tournament, Salute to Navy, and the Annual Inauguration and Awards Dinner. ■ The following City representatives participate on the Special Events Committees: ▪ Mayor Ron Morrison and City Council (Serve barbecue at Automobile Heritage Day) + Leslie Deese (Annual Dinner, Taste of National City, Automobile Heritage Day, Salute to Navy) •3 Sgt. Graham Young (Automobile Heritage Day) + Councilmember Luis Natividad (Taste of National City, Annual Dinner, Monthly Breakfasts) ECONOMIC DEVELOPMENT • Hosted the 8th Street Smart Growth Revitalization Project Meeting on October 14, 2010 to connect businesses and residents to project staff • Participated on the Joint Task Force for Financial Health Forum, Naval Base San Diego, November 3, 2010 • Assisted with the Vallarta's Job Fair, January 10, 2011 • Participated in the SCEDC Business Outreach Walk, January 24-28, 2011 • Co -Sponsored and helped organize the 1"Annual Financial Education day at Southwestern College with the Mexican Consulate and the City of National City on March 5, 2011 • Worked with along with Councilmember Luis Natividad to promoted local hiring opportunities with Vallarta Grocery store (January —March 2011) and processed more than 1,500 employment applications • Offer free job postings and resume posting on Jobing.com • Developed a new Career Center link on the NCCC website • Developed the new NCCC Foundation Community Development Scholarship Program for Sweetwater High School students. Due May 2, 2011. Page 6 Economic Development Programs BUSINESS EDUCATION • Publish a Quarterly Newsletter, which includes a City News section highlighting City projects, programs, events, accomplishment, and business development opportunities. • Publish monthly E-Newsletters which include a listing of upcoming city events, trainings, and City news. • Hosted a "Website Development for Small Business Workshop" on October • Hosted an "Access to Capital Workshop" on September 30, 2010 • Hosted a "Smart Way to Grow Your Business" workshop on January 28, 2011 • Hosted a "Smart Tax Tips and IRS Fundamentals" workshop on February 18, 201 1 • Hosted the "Small Business Marketing via Social Media" workshop on March 24, 2011 COMMUNITY PROMOTION • Advertise all City events on the Chamber's website, Facebook page, twitter page, and monthly E-Newsletter • Forward all City press releases to media contacts • Send e-mail blasts as requested by City of National City management • NCCC website linked with City of National City website. • Ochoa Chorizo Grand Opening, October 16, 2011 • Home Town Buffet Grand Opening, December 18, 2010 • Briefed the San Diego Business Journal editorial staff with SCEDC and the Mayor on March 25, 2011 during a National City Bus Tour. • Publish the City's Quarterly Sales Tax Update in the NCCC Newsletter • Published 7,500 copies of the 2011 National City Community Guide and Business Directory BUSINESS RECRUITMENT • Met with AT Still University Dental Training School at 401 Mile of Cars Way, February 24, 2011 • Met with owners of Karma's Mexican Seafood with Mayor Morrison and City Manager Chris Zapata to pitch Marina Gateway site. • Working with the City of National City, the Mile of Cars Association, and Real Estate Professionals to fill the vacant car dealership on the Mile of Cars. • Respond to business inquiries for relocation assistance: prepare demographic information, assist with site searches, real estate listings, provide tours, and serve as liaison to City staff for permit processing and information. Page 7 Economic Development Programs BOARD PARTICIPATION TO REPRESENT CITY OF NATIONAL CITY • Community, Economic and Urban Development (CEUD) Advisory Council: Provide program development and leadership development guidance for curriculum enhancement for Southwestern College students interested in related career paths. Provide guidance to Leadership and Supervision Program. • Olivewood Gardens Board: Olivewood Gardens is an urban, organic garden located in National City, California. The goal is to educate students, teachers, families, and volunteers to be healthy and active citizens. Olivewood Gardens is a destination for children from the surrounding urban community to explore connections between plants and history, science, art, literature, math, and nutrition where learning is centered within the context of an organic garden. Organic produce is grown and harvested for nutrition classes, cooking demonstrations, and workshops. • San Diego Foundation Regional Vision Council: The Regional Vision Initiative is a multi -year, multi -phase endeavor to develop a 50- to 100-year strategic vision and subsequent action plan for the greater San Diego region that encompasses the shared values and priorities of all its residents. As a member of the prestigious Regional Vision Council, I will play a pivotal role in ensuring that all voices are heard. The Regional Vision Initiative will stimulate an unprecedented level of community participation that is geographically, economically and culturally diverse. • South County Economic Development Council: Serve on the Tourism Committee to promote National City's community assets. Regularly attend Board meetings and report on City of National City community development, economic development, and redevelopment activity. Attend SCEDC events and meet with elected officials to communicate National City's plans and goals. • Southwestern College Prop R Steering Committee: Provide district -wide direction and leadership for the implementation of the Educational and Facilities Master Plan and the implementation of Proposition R. Ensure stakeholder involvement from National City. • United States University Board: United States University (formerly InterAmerican College) endeavors to improve education and health care in Southern California by preparing bilingual professionals for schools and hospitals. US University's mission is to recruit working adult students, Latinos, educated immigrants, and others who have been denied access to higher education due to gender, ethnicity, race, economic status, and cultural barriers. US University strives to equalize social justice by providing university programs through non- traditional scheduling to working adults. The University is a private, market -driven institution of higher education located in National City, CA. US University is one of four Latino institutions in the United States and the second in Southern California. DISTRESSED BUSINESS ADVOCACY • Provided business advocacy on issues impacting businesses such as: ➢ Casa Del Taco lease renegotiation with property managers ➢ Barbecue Pit request for flood map modification/update to reduce business insurance costs ➢ Hanaoka rent forgiveness and contract negotiation ➢ Amortization Ordinance impact on west side businesses ➢ Shopping Cart Ordinance business impact ➢ Three pack beverage sale ordinance impacting National City grocers Page 8 Economic Development Programs Policy Advocacy NCCC has been proactive in reaching out to legislators and state officials on important issues such as the preservation of redevelopment agencies. • January 13, 2011, 8:00 am - Presented Governor's Proposal to Economic Development Committee. Committee supported an Immediate Call to Action to protect Redevelopment funding. Direction to take urgent action issued by Chairman Frank Plant. • January 13, 2011, 8:24 am - Issued a White Paper to local chambers on the impact of the Governor's Proposal on National City and requested a collective organizing effort to influence state legislators to preserve both the Enterprise Zone and Redevelopment funds. • January 28, 2011, 10am- Met with the office of Senator Juan Vargas at District Office location. Issued Impact Letter to District Office and requested legislative support to oppose the Governor's proposal. • January 31, 2011, 12 noon — Attended Press Conference on Governor's Redevelopment Proposal in City Heights. Attended by key civic and business leaders. Statements issued by Mayor Ron Morrison and Ruben Barrales, San Diego Regional Chamber President/CEO, among others. • February 10, 2011 — Letters issued to Senator Juan Vargas and Assemblymember Ben Hueso urging them to Preserve Redevelopment Agencies • February 24, 2011, 3:15 pm — Redevelopment Forum hosted by SCEDC at the South County Education Center • March 8, 2011 — Lobbying Trip to Sacramento. Met with Michael Cohen, Chief Deputy Director with the California Department of Finance; Senator Ellen Corbett (D-San Leandro); Senator Price (D-Los Angeles); Senator Ted Lieu (D- Torrance); Assemblymember Lara (D-Southgate); Assemblymember Toni Atkins (D-San Diego); Assemblymember Henry Perea (D-Fresno); Senator Negrete McLeod (D-Montclair); ;Senator Lou Correa (D-Santa Ana); Senator Joel Anderson (R-La Mesa); Senator Ron Calderon (D-Montebello); Assemblymember Tony Mendoza (D-Artesia); Assemblymember Nora Campos (D-San Jose); Assemblymember Manuel Perez (D-Imperial Valley) "National City Green Initiative" Project Overview Currently the Chamber has over 500 active members and is dedicated to becoming a leader in the green industry. NCCC has begun its efforts by taking incremental steps toward this goal. The popularity of sustainability through green business practices has been around for years and has recently become a new trend in the business environment. Renewable technologies such as solar and wind power are becoming increasingly prevalent in the world today. Right now, businesses large and small can take advantage of simple energy retrofits and water conservation techniques to lower their consumption and operating costs. In an effort to Page 9 Economic Development Programs bring available resources to National City's' front door, the Chamber of Commerce is introducing the Go Green National City initiative, hereafter referred to as the "Green Initiative." The Green Initiative is a collaborative effort among the National City Chamber of Commerce, the City of National City, regional and local partners, private companies, and the community to guide the city towards sustainable business practices and development. The Green Initiative includes Three Components 1. Policy Development 2. Program Development and Outreach 3. Business Promotion and Community Promotion Objectives: The objective of the National City Chamber of Commerce is to become a one -stop resource for information, education, program participation, and marketing tools relating to all 3 components of the green initiative. The short term goal is to increase business participation in energy efficient programs and facilitate their adoption of sustainable business practices and products. Short term results shall yields decreased operating costs. The long-term goal is to lay the foundation for the future attraction of businesses in the green industry and create a culture of sustainability throughout National City. The long-term results include the creation of healthier and more efficient communities with a significantly reduced carbon footprint. Work Progress: The Chamber has been working with the following companies and organizations to further develop and implement the Green Initiative including San Diego Gas & Electric, Sweetwater Authority, California Center for Sustainable Energy, Clean Tech San Diego, EDCO Recycling & Waste Collection Services, City of National City, City of Chula Vista, Cox Communications, AT&T, San Diego Port Tenants Association, Private companies such as Wal-Mart, Pasha, San Diego Cold Storage, and Salas O'Brien. To date we have completed the following: ✓ Benchmarked and documented best practices in creating Green Initiatives in other communities, either via a municipal entity such as an economic development organization or a Chamber of Commerce, and applied these best practices to develop the program in National City ✓ The Chamber has created a checklist program that helps businesses implement Green practices. ✓ Issued an RFP to Develop branding and marketing material for the Green Initiative ✓ Identified potential sources of funding for a green business initiative ✓ Identified NCCC members who would be the best candidates to go green ✓ Developed a marketing strategy that articulates a purpose, mission, target audience, promotional and incentive ideas, and methods of distributing the marketing material Next Steps: 1. Reach out to ail major companies in National City a. Present the Green Initiative b. Present "Requirements for a green company" c. Communicate marketing benefits of program participation Page 10 Economic Development Programs 2. Develop Website Tools a. Create a link, the "Green Initiative" on the Chamber of Commerce website b. Include a Green Resource Library with links and information to green programs, products, offers, partner programs, etc. c. Showcase participating businesses d. Include Testimonials e. Include City's progress on green type projects f. Include photos of participants and green events g. Upload participation forms h. Upload Collateral material 3. Business Recognition and Program Awareness a. Provide window decal with program logo to every company that completes "green verification" or "green business pledge" b. Host Annual "Green Business of the Year" Award ceremony c. Recognize businesses every quarter at City Council Meetings d. Issue Press Releases to local media contacts to recognize businesses 4. Education and Outreach a. Host a presentation regarding the Green Initiative and Green Business Practices b. Organize educational workshops quarterly/ bi-annually 5. Joint Marketing with Partners a. SDG&E - Energy Makeover, Direct Install, Energy Roadmap, Emerging Cities, presentations, event booths b. EDCO - Recycle Bins, food composting, presentations, event booth c. City of National City — Checklist verification partner, presentations, event booths, website presence d. City of Chula Vista — battery and toxic chemical dispensary e. Sweetwater Authority — rebate programs f. Link our website to partner websites CONCLUSION The National City Chamber of Commerce looks forward to a continued working relationship with the City of National City and the CDC. The Chamber's mission is to increase opportunities for businesses and to represent its members in matters related to business, government and community relations. The Chamber will continue to support and promote the City's economic development through educational workshops, public forums, technical assistance, promotional activities, special events, business advocacy, and an active Visitor's Information Center. Report Prepared by: Jacqueline Reynoso, President/ CEO reynoso@nationalcitychamber.org ber.ora (619) 477-9339 Page 1 1