HomeMy WebLinkAbout2021-10-18; Economic Development Subcommittee; ; lnnovate78 UpdateEconomic Development Subcommittee
Meeting Date:
To:
From:
Item #2:
Recommendation:
Oct. 18, 2021
City Council Economic Development Subcommittee
David Graham, Chief Innovation Officer
lnnovate78 Update
{city of
Carlsbad
Receive an informational report regarding the collaborative economic development initiative between
the cities of Carlsbad, Escondido, Oceanside, San Marcos, and Vista, known as lnnovate78.
Background
lnnovate78 began in 2012 when the mayors of the cities of Carlsbad, Escondido, Oceanside, San Marcos,
and Vista began to work together to promote the economic interests of the 78 Corridor. With so much
interconnectivity and dependency on one another for businesses, jobs, and opportunities, it was and
remains economically advantageous to present the 78 Corridor. as one unified region. The five cities
collectively funded a study and economic development 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 execution of this strategy.
Since 2014, the San Diego Regional Economic Development Corporation (EDC) has been the contractor
for Innovate 78. The five cities engaged EDC in a two-year contract, which was extended for an additional
two years in 2016 and one additional year in 2018. In keeping with sound fiscal policy, in 2019, the five
cities conducted another Request for Proposals (RFP) for services related to Innovate 78. EDC was again
selected as the contractor for a two-year term. The contract was extended one additional time, from
June of 2021 to October of 2021 to allow for a comprehensive review of the goals and objectives of
lnnovate78 considering the economic impact of the COVID-19 health emergency.
On October 31, 2021, the lnnovate78 contract with EDC will conclude. Over the past year, staff from the
five cities have discussed the future of Innovate 78, including options for contracting beyond the current
agreement with EDC. Ultimately staff is proposing a new approach to the initiative, which is discussed
below.
Discussion
Since the initial contract in 2014, the five cities have worked with EDC due to their knowledge and
expertise in economic development and specialization in regional communication. Additionally, no other
economic development organization was considered capable of executing the scope of services of the
contract. However, the five cities and EDC agreed that should a north county economic development
organization demonstrate the ability to execute the lnnovate78 initiative a sub-regional manager
focused on the geographic area of the five cities could be a preferable option to pursue.
Through lnnovate78, 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 been recognized by awards from the
California Association of Local Economic Development (CALED) and the International Economic
Development Council (IEDC). '
Oct. 18, 2021 Item #2 Page 1 of 2
Economic Development Subcommittee -Staff Report
Oct. 18, 2021
Item 2 -Page 2
Since the onset of the health emergency, staff have also worked to relay information, share business
relief programs, and support business recovery, resiliency, and revitalization. Much of this work was
done in collaboration with the San Diego North Economic Development Council (SDNEDC}, which took a
leadership role in coordinating with economic development staff during the health emergency.
As the current agreement with EDC entered into its final year, staff began evaluating the current
approach to lnnovate78 and met monthly to develop recommendations regarding the future of the
initiative. There is consensus between the staff of the five cities the work of SDNEDC prior to the
pandemic and the ongoing work today demonstrates that the organization has the capacity to support
and execute the lnnovate78 initiative. Staff also recommends that the marketing and communications
support for the initiative should be jointly managed by the five cities through a professional contractor.
Given the size, scope, and complexity of marketing the sub-region, these activities should be bifurcated
from the duties carried out by the organization managing Innovate 78. Based on this evaluation there is
consensus between the staff of the five cities that lnnovate78 should have two separate but related
components.
Staff recommends that the existing level of financial support from each city continue, but that it be split
between the two separate but related efforts. First, SDNEDC will create a new level of membership, the
lnnovate78 tier, which would be a $20,000 per city investment. The organization will deliver similar
economic development services to those currently being provided by the EDC. The advantage is that this
level of support is an investment in a north county organization, which has ancillary benefits of
strengthening the region's economic development capacity.
For the marketing and communications services previously executed by EDC, the five cities will work to
procure a communications and marketing firms that is suited to deliver the existing level of service and
grow the communications program to broaden the reach of Innovate 78.
Based upon several months of evaluation and discussion, the staff of the five cities are recommending to
their respective city leadership that the hybrid approach with SDNEDC as the lnnovate78 managing ·
organization and procuring the services of a marketing and communications firm that is managed by the
five cities to accomplish the initiative's goals will deliver in the vision of the initiative.
Next Steps
To move to the new hybrid lnnovate78 approach each city will need to increase their membership with
the SDNEDC to the lnnovate78 tier membership. Additionally, a new MOU will need to be drafted and
approved by each of the five cities.
The five cities are currently working on a draft MOU to implement the new hybrid approach to Innovate
78. The City of Oceanside has also taken the lead on soliciting interest from qualified marketing and
communications firms. All five cities intend to bring the MOU and entire package for the new hybrid
lnnovate78 to their respective leadership before the end of the year. City of Carlsbad staff are seeking
input from the Economic Development Subcommittee regarding this proposal.
Fiscal Impact
Budget for lnnovate78 in the amount of $40,000 has been allocated for the current fiscal year. No
additional costs are anticipated.
Oct. 18, 2021 Item #2 Page 2 of 2