HomeMy WebLinkAbout2014-03-11; City Council; 21529; Approve Business Retention, Attraction Cooperation Memorandum of UnderstandingCITY OF CARLSBAD - AGENDA BILL 12
AB# 21,529 AUTHORIZATION TO APPROVE THE BUSINESS
RETENTION AND BUSINESS ATTRACTION
COOPERATION MEMORANDUM OF UNDERSTANDING
DEPT. DIRECTOR (^_^
MTG. 3/11/14
AUTHORIZATION TO APPROVE THE BUSINESS
RETENTION AND BUSINESS ATTRACTION
COOPERATION MEMORANDUM OF UNDERSTANDING
CITY ATTORNEY ^
DEPT. CED
AUTHORIZATION TO APPROVE THE BUSINESS
RETENTION AND BUSINESS ATTRACTION
COOPERATION MEMORANDUM OF UNDERSTANDING CITY MANAGER / i^/s.
RECOMMENDED ACTION:
That the City Council ADOPT City Council Resolution No. 2014-042 APPROVING the Business Retention
and Business Attraction Cooperation Memorandum of Understanding and directing the City Manager to
execute the Memorandum of Understanding.
ITEM EXPLANATION:
As part of the.North County Branding Program, the cities of Carlsbad, Escondido, Oceanside, San Marcos
and Vista (Five Cities) have negotiated and desire to enter into the Business Retention and Business
Attraction Cooperation Memorandum of Understanding. This Memorandum of Understanding (MOU)
creates guidelines for the conduct for the Five Cities in the new North County Economic Development
Collaborative, which aim to promote and support local economic development.
Since October 2013, economic development staff from each of the Five Cities have worked together to
draft the MOU shown in Exhibit 2. The memorandum has received approval from the City Attorneys and
City Managers from all Five Cities along with additional input from elected officials.
In the MOU, the Five Cities agree that collaborating on economic development activities will increase
their ability to retain and attract businesses to the region, and intraregional competition may be
counterproductive to regional economic development. The principles and protocols listed in the MOU
encourage the Five Cities to think and act regionally by committing to sharing with each other as much
information as possible.
The MOU has a term of five years although Cities maintain the right to withdraw at any time. The MOU
also in no way prevents a City or its authorized agent from engaging in typical real estate business
practices regarding commercial real estate that a City owns, manages or otherwise controls. While this
memorandum does not represent a financial arrangement among the Five Cities, Cities do acknowledge
the implementation of an effective economic development strategy will take the ongoing involvement
and investment of each of the Five Cities.
Staff recommends approval of the attached resolution, in which the City agrees to adhere to the
guidelines for the conduct outlined in the Business Retention and Business Attraction Cooperation
Memorandum of Understanding for a term of five years.
DEPARTMENT CONTACT Christina Vincent, 760-602-2712, christina.vincent@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
FISCAL IMPACT:
There is no fiscal impact associated with the staff recommendation.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonably foreseeable indirect physical change in the environment, and therefore does not
require environmental review.
EXHIBITS:
1. City Council Resolution No. 2014-042
2. Memorandum of Understanding.
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EXHIBIT 1
1 RESOLUTION NO. 2014-042
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2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE FIVE CITIES ECONOMIC
DEVELOPMENT COLLABORATIVE BUSINESS RETENTION AND
4 BUSINESS ATTRACTION COOPERATION MEMORANDUM OF
UNDERSTANDING, DIRECTING THE CITY MANAGER TO EXECUTE
5 THE MEMORANDUM OF UNDERSTANDING.
WHEREAS, the City Council has established strategic goals of strengthening
regional partnerships and business retention and expansion to further economic development;
and
WHEREAS, the cities of Carlsbad, Escondido, Oceanside, San Marcos and Vista
11 (collectively "Five Cities") have undertaken the North County Branding Program to develop
^2 branding, images, and messages that are unique to North County and highlight the region's
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assets and industries as the best place to do business; and
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WHEREAS, the Five Cities recognize that collaborating on economic development
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activities will showcase the regions positive attributes and acknowledge that intraregional
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I y competition may be counterproductive to regional economic development; and
18 WHEREAS, the Five Cities within the region desire to maintain this ijnderstanding
for the term of five years; and
WHEREAS, the Five Cities acknowledge an economic development strategy for
the region is necessary and will be created and updated by the North County Cities each fiscal
year; and
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24 WHEREAS, the delegated staff of the Five Cities have developed a Business
25 Retention and Business Attraction Cooperation Memorandum of Understanding, outlining
principles and protocols of each member city with regards to economic development efforts
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within the region.
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1 NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Carlsbad,
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California, as follows that:
1. The above recitations are true and correct.
2. The City Manager is hereby authorized to sign the Memorandum of
Understanding on behalf of the City of Carlsbad.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 11*^ day of March, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood and Blackburn.
None.
ABSENT: None.
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MATT HALL, Mayor
ATTEST:
SHELLEY COLLINS,Assistant City Clerk
(SEAL)
EXHIBIT 2
The Five Cities
(*Brand to be Inserted here when finalized)
Economic Development Collaborative
Business Retention and Business Attraction Cooperation
Memorandum of Understanding
Thinking regionally along the SR78 corridor
With the global econonnlc environment as ambiguous and uncertain as ever,
proactive regionalism is a powerful economic development tool in business retention
and attraction. Acting as a region first and individual communities second is one of
the best incentives that can be offered to businesses to keep them within the
corridor. Cooperation among the Five Cities—working together—will convey to
businesses that the SR78 corridor is the best place to do business in San Diego
County.
1. Introduction
The Cities of Carlsbad, Oceanside, Vista, San Marcos, and Escondido (Five Cities)
along SR78 corridor in North San Diego County, California, wish to enter a new era
of regional collaboration to promote and support local economic development.
These Cities recognize that collaborating on economic development activities will
showcase the SR78 corridor's positive attributes and offer significant benefits to the
Five Cities and their residents. Furthermore, the Cities also acknowledge that
intraregional competition may be counterproductive to regional economic
development. While individual Cities want to encourage businesses to locate within
their boundaries, they prefer not to do so at the expense of their neighbors.
2. Principles and Protocols
• Each City should attempt to conform its economic development efforts to the
following principles and protocols:
• The regional economy will be stronger if Cities work together. Collaborative
efforts should focus on retaining and expanding existing businesses, attracting of
new businesses, and the showcasing the region's business-conducive
environment. These efforts should emphasize attracting new business along the
SR78 corridor to enhance the regional economy, rather than encouraging
companies to move from one community to another.
• By thinking and acting regionally. Cities will (1) eliminate duplicative efforts, (2)
achieve greater economies of scale, (3) better leverage resources, and (4) create
a business environment which is more attractive for private investment.
• Cities shall be committed to locating prospects along the SR78 corridor. In the
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event that a City cannot meet the needs of a particular prospect, that City should
communicate with the other Cities in an effort to meet the company's needs
elsewhere along the corridor.
Transactions are to be driven by the business's needs. If a company chooses to
relocate from one community to another, every effort will be made to contact the
affected City to inform them ofthe potential move. When one City cannot
accommodate business relocation or a prospect, that City will share information,
as allowed by the client, with other Cities in the region to maximize the prospect
for regional business development.
All Cities will avoid soliciting another partner City's businesses, schools or
prospects. For the purposes of this item, the term "solicit" shall not be construed
to prevent a City or its authorized agent from engaging in typical real estate
business practices regarding commercial real estate that a City owns, manages
or othenA/ise controls. A City or its authorized agent may list available commercial
space in normal real estate brokerage marketing devices and may discuss or
negotiate with any business or commercial operation that inquires into the
availability of said City owner, managed or controlled commercial real estate.
Cities should be committed to sharing with each other as much information as
is necessary and prudent on any activity undertaken by or in the name of this
regional cooperation. The guiding principle shall be that "more information is
better than less."
• "Selling against" another City in the region or direct solicitation of intrastate
relocations is strongly discouraged.
3. Confidentiality of Prospects
Cities within the region shall honor the confidentiality of individual
businesses/prospects to the extent permitted by law. Whenever possible, specific
Information on particular transactions should be shared. In those instances where
businesses/prospects are dealing with individual cities, information will only be
shared with the affected City's economic development representatives.
In instances where a prospect wishes to remain completely confidential with an
individual city, the remaining Cities shall honor that confidentiality and should not
attempt to intervene in the relationship. The prospect will remain confidential until the
prospect chooses to announce.
4. Financial Commitment; Nature of MOU
This MOU encompasses guidelines for the conduct of the Five Cities, not
obligatory standards to be followed. As such, it is not a contract and the failure to
implement a guideline or to follow a guideline will not represent a contractual
breach nor create any liability to a City or a third party based on this MOU.
This MOU does not represent a financial arrangement among the Five Cities.
5. Term of the MOU
For a period of five years, each City will endeavor to reasonably pursue the
guidelines contained in this MOU, unless a City notifies the other Cities of its •
intention to withdraw from the MOU, which notification shall take effect
immediately.
6. Regional Economic Development Strategy
It is acknowledged that to fully implement an effective economic development effort
for the region, an economic development strategy is necessary. That strategy will
take the ongoing involvement and investment of each of the Five Cities. Although
this document does not address the specifics of that Economic Development
Strategy, all parties agree to work together to create, support, and maintain the
strategy. The Economic Development Strategy will be created by and updated by
the Cities each fiscal year so as to continue our mutual economic development
efforts in an uninterrupted manner.
7. Conclusion
Therefore, it is recommended that the Five Cities promote this agreement with
existing and prospective local businesses. Pervasive knowledge of this agreement
amongst the business community within and outside the region is an essential step
towards achieving the objectives of this economic development collaborative.
Date: jj/-^f ^
We hereby agree
CiTy of Cartsbad City of Escondido
City of Oceanside City of Vista
City of San Marcos
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Business Retention and Business
Attraction Cooperation
Memorandum of Understanding
Christina Vincent
Economic Development Manager
March 11, 2014
Why MOU for Cooperation?
•Carlsbad, Oceanside, San Marcos, Vista,
Escondido
•A business relocating to North County benefits
the region as a whole
–Jobs, housing, shopping, activities, etc.
•Competition is counter-productive
•Strength in promoting regional partnership
and alignment
Benefits
•Strength in five cities
•A unified voice for the region
•Cooperation creates certainty for businesses
•Proactive and not reactive
•Business-friendly
•Efficient and effective
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Examples
•Metro Denver Code of Ethics, Colorado
•One Bay area, California
•EDGE program, Ohio
•Research Triangle Regional Partnership, North
and South Carolina
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Next steps
•MOU is first step of many
•Branding of North County
•Strategic action plan
•Professional Services Agreement for partner
to implement
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Questions?
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