The URL can be used to link to this page

Home My WebLink About2021-10-28; Economic Development Subcommittee - lnnovate78 Economic Collaboration Update (Districts - All); Rocha, LauraTo the mem~ers of the: CllY COUNCIL Date iO/zf!/21 CAL CC / CM --'L ACM ✓ DG:M (3) ✓ Oct. 28, 2021 To: From: Via: Council Memorandum Honorable Mayor Hall and Members of the City Council Laura Rocha, Deputy City Manager, Administrative Services David Graham, Chief Innovation Officer Geoff Patnoe, Assistant City Manager Q {city of Carlsbad Memo ID #2021198 Re: Economic Development Subcommittee -lnnovate78 Economic Collaboration Update (Districts -All) This memorandum provides information related to the Oct. 18, 2021, Economic Development Subcommittee hearing regarding Innovate 78, a collaborative economic development initiative involving the cities of Carlsbad, Escondido, Oceanside, San Marcos, and Vista. Background In 2012, the Mayors of Carlsbad, Escondido, Oceanside, San Marcos, and Vista began to work together to promote the economic interests of five cities along the 1-78 corridor. This became an economic development collaboration branded as Innovate 78. The five cities collectively funded the development of a study and strategy to collaboratively execute economic development programs and initiatives that would benefit all five cities. In 2014, the five cities formalized a memorandum of understanding (MOU) to jointly fund a contract for the execution of the strategy. Since 2014, the five cities have contracted with the San Diego Regional Economic Development Corporation (EDC) to manage the lnnovate78 program. Through extensions and a request for proposals the EDC has managed lnnovate78 on behalf of the cities for approximately seven years. As the most recent contract with the EDC was nearing its end in 2021, staff from the five cities began a comprehensive review of the goals, objectives, and opportunities associated with Innovate 78. The effect of the COVID-19 health emergency was also considered. In June of 2021, the contract with the EDC was extended a final time to Oct. 31, 2021, to allow for the completion of the comprehensive review and the development of a recommended approach for the initiative. Staff from the five cities have completed their review and have reached consensus on a recommended approach. Administrative Services Branch Innovation & Economic Development Department 1635 Faraday Ave I Carlsbad, CA 92008 I 760-602-4620 Council Memo -Economic Development Subcommittee-lnnovate78 Economic Collaboration Oct. 28, 2021 Page 2 Discussion Since the initial contract in 2014, the EDC has managed lnnovate78 on behalf of the five cities because of their expertise in economic development and specialization in regional communication. At the time the initial contract was approved, no other local economic development organization was considered capable of executing the scope of services that were needed. However, the five cities ~nd the EDC agreed that should a north county economic development organization demonstrate the ability to execute the lnnovate78 initiative in the future, a sub-regional manager focused on the geographic area of the five cities could be a preferable option to pursue. Through Innovate 78, economic development staff from the five cities have worked in close collaboration. Prior to the COVID-19 health emergency, staff worked to establish programs and services, support company expansion and attraction, develop a more robust workforce, and encourage startup and entrepreneurship activity. This collaborative work has received recognition and awards from the California Association of Local Economic Development {CALED) and the International Economic Development Council {IEDC). During the COVID-19 pandemic the strong ties between the lnnovate78 cities were valuable in economic response and recovery. Staff have worked to relay information, ·share business relief programs, and support business recovery, resiliency, and revitalization. Through these efforts, the San Diego North Economic Development Council (SDNEDC) has emerged as a key collaborator in the economic response to COVID-19. The mission of the SDNEDC is to build a stronger north county economy through regional collaboration and leadership. Founded in 1998, they bring together the public and private sector as community partners to sustain and strategically grow the economic base of north county. The organization's Board of Directors is comprised of private business, municipal agencies, non-profit organizations, and local government representatives. During the COVID-19 pandemic, the SDNEDC has taken a leadership role in coordinating a north county economic response to the COVID-19 pandemic and has been a key partner with the economic development staff from the five lnnovate78 cities. There is consensus amongst staff that the work of the SDNEDC prior to the COVID-19 pandemic, and their ongoing work, demonstrates that the organization has the capacity to support and execute north county economic development initiatives like lnnovate78. There are four general approaches to the future of lnnovate78 which are: • Terminate the lnnovate78 partnership • Engage the EDC to continue providing services • Procu re a new contractor to provide the services formerly provided by the EDC • Develop a hybrid approach based upon the history of the initiative and the economic development objectives of the five cities Council Memo -Economic Development Subcommittee-lnnovate78 Economic Collaboration Oct. 28, 2021 Page 3 Based on research and review of Innovate 78, staff from the five cities are recommending the option to develop a hybrid approach to continuing lnnovate78. The hybrid approach to lnnovate78 was presented to the City Council Economic Development Subcommittee on Oct. 18, 2021. It includes: • The SDNEDC creating an lnnovate78 tier of membership to provide services like those currently provided by the San Diego Regional EDC • Giving the five cities more status and influence in decision-making at the SDNEDC as they drive economic development in north county • Bifurcating the lnnovate78 management activities from the marketing and communication activities • Procuring a marketing and communications firm, managed by the five cities, to develop and execute the regional economic development promotion The hybrid approach recognizes that this economic development collaboration has grown and matured. It draws upon the sub-regional capacity of the SDNEDC. It also has the ancillary benefit of strengthening north county's economic development capacity by investing in a sub-regional organization. The approach responds to the staff consensus that the marketing and communications needs of the initiative have grown beyond the capacity of a single local economic development organization. Engaging with a professional firm that can tailor marketing and communications to the specific needs of the initiative, and has the capacity to execute, is seen as valuable. The current financial commitment from each city to lnnovate78 efforts is $38,000. The hybrid approach proposal is to split those resources with $20,000 per city going to the new lnnovate78 tier of membership at the SDNEDC. The remainder would be committed to fund the regional economic development promotional activities provided by a marketing and communications firm. Given the size, scope, and complexity of marketing the sub-region, the hybrid approach proposes to bifurcate these duties from those carried out by the organization managing lnnovate78. For the marketing and communications services previously executed by the EDC, the five cities will work to procure a communications and marketing firm that is suited to deliver the existing level of service and grow the communications program to broaden the reach of Innovate 78. The Economic Development Subcommittee expressed support for proposing the lnnovate78 hybrid-approach to the City Council. They requested that when the item is heard by the City Council, staff present information regarding how the subcommittee and the City Council will be updated regarding future lnnovate78 activities. Council Memo -Economic Development Subcommittee-lnnovate78 Economic Collaboration Oct. 28, 2021 Page 4 Next Steps The five cities will draft a MOU for the hybrid lnnovate78 option and present it to each city's respective leadership. The City of Oceanside has taken the lead on soliciting interest from qualified marketing and communications firms. When the staff from the five cities have agreed upon a proposed MOU, Carlsbad staff will schedule it for consideration at a future City Council Meeting, along with any additional information necessary for the consideration of the hybrid approach. It is anticipated that the MOU will be ready for consideration in December or January. cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Laura Rocha, Deputy City Manager, Administrative Services Kristina Ray, Communications & Engagement Director Ryan Green, Finance Director Matt Sanford, Economic Development Manager Joe Stewart, Management Analyst