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HomeMy WebLinkAboutRDA O.C. ECON DEV CONS 01-17-94RDA NO. 5 1-17-94 'TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM' COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: PARTICIPATION IN ORANGE COUNTY ECONOMIC DEVELOPMENT CONSORTIUM --RECOMMENDATION It is recommended that the Tustin Redevelopment Agency authorize the Agency Executive Director to join the Orange County Economic Development Consortium, as recommended by the City of Tustin Economic Development Council. ~ISCAL IMPACT With a population between 50,000 and 100,000, the total cost to the Agency to join the Consortium is $600. There are adequate funds for membership in the budgets of the South Central Redevelopment Project Area and the Town Center Redevelopmen5 Project Area to cover these expenditures. D~ISCUSSION __ In 1992, a group of Orange County cities and businesses t~% changing dynamics of the Orange County economy and recognized _ its ability to attract and, more importantly, to retain its,ex!sting business and industrial base. These cities and businesses banded together to form the Orange County Economic Development Consortium. The Consortium has grown over the past two years and now includes over thirty corporate, city, educational, state and public utility members. Nine cities are currently members. The}, are: Anaheim Garden Grove Mission Viejo Brea Huntington Beach 'Orange The Consortium has four specific goals. These are: . Fuilerton Irvine Santa Aha Business Retention and Growth: Reduce -he number of jobs lost through company relocations and maximize expansion opportunities for those businesses which are currently located in Oranae County. _ Redevelopment Agency Report Orange County Economic Development Consortium January 17, 1994 Page 2 . attract new businesses Market Orange County to and create new jobs. 3. _ Pro-Business Public Polic : Work for public policy reform at the state and local level to enhance Orange County,s business climate. 4. ~: Improve the image of Orange County as a place locally, nationally _t~ do business as perceived an~ internationally. Chamber of Commerce and I The Consortium is operated under the auspices of the Orange County for busine ndust ]t~ the Voice ~e~ and investors in re · ' s ~s bot~ a clearinghouse · oz urange County i ..... ? _ n Orgnge County as well as retenti' ~ n ~=Pz~senting the County in business on and attraction activi contacted by businesses to find ties. Increasingly. it is being County by businesses interested out "what is available,, in Orange or interested in locating here. in continuing to do business here The Consortium cannot, a business ou~ .... ~ · nd should n~ ~- · . ~=~ s~rate .v~, o~ viewed . ~ddmtLonal tool for ~- ~.for the City of Tus~ ~a~_the Przmarv zurt~er and be ~-u~ ~y's use. It a ~.-_~at~er, it is could =~__ ,,~m~ vzslole to .... llows Tu~tin to ~~ mana'cer ...... ~° uwn. Just =~ - =~ u~males than -~ .... center, but the 'i~=7~?~= _marKeting to E~qA'A~ ==-~er's propert% cust~me~o ~ .... ~U~Vl~ual stores ~,, _ ~. customers t · ~- -o mn ~elr ~oors, s~ =~ .... ,,,-st ~dversise ~ ~_ . o the in Orange County, but the City of Tustin must still develop /ts own ~ ~u une Consortiu~ ~,,_ =u. orlng the business attraction and retention policies. '" ~uurac~s interest The direct benefit of the City s participation in the COnsortium is fourfold. ' · 1.The City will be represented and highlighted at trade Shows attended by the Consortium. 2. The Consortium will provide information about the City of Tustin to those who request information about locations in Orange County. 3. The Consortium will notify the City concerning "leads,, about businesses seeking locations in Orange County. Redevelopment Agency Report Orange County Economic Development Consortium January 17, 1994 Page 3 o When requested, the Consortium will assi_t= the City in contacts, we may receive. These benefits will become more apparent as the City moves closer towards the closure of Marine Corp Air Station, ?ustin. It also can be helpful in the expansion of Pacific Center East as the business environment improves during the next few ~fears. It is important to note that Tustin's economic base is tied to the economic base of the overall County. Thus, Tustin's involvement with the Consortium adds the weight of this City tc the others who recognize the need for the public and private sectors in the County to work together to strengthen and expand the regional economic base. At its meeting of January 5, 1994, Mr. Ken Moore, President of the Orange County Chamber of Commerce and Industry, addressed the City of Tustin's Economic Development Council. The Council discussed the benefits of the City affiliating with the Ccnsortium and by unanimous vote recommended the City join the Conscrtium. ~e fee for public agency participation is based on a sliding scale according to population of the cities. These fees are from a low of $300 for a city with less than 50,000 citizens to $1,500 for cities above 250,000 residents. As a city witk a population · between 50,000 and 100,000, Tustin's cost to join ~ould be $600. Because the primary areas which would benefit from business attraction and retention are the Redevelopment Prc=ect Areas, the tax increment from these areas can be used to pay this fee. Therefore, if the Council decides to join the Consortium, the Staff recommends the Council appropriate $300 from the budget accounts in each Project Area which provide for memberships and subscriptions. These accounts are 560-9000-8330 (South Central Project Area) and 590-9000-8330 (Town Center Project Area). Attached is a copy of the brochure on the Consortium as well as the most recent Consortium Newsletter. Christine Shingle~" Assistant City M~ager RZ: kbc~edc~cntyedc, cc cD) -- ~,._ z ~ '7. --- 0~ ~-- ,-. ~.. >-..22 >. Published Quarterly 4th Quarter .1993 THE CONSORTIUM REPORT-' i H. Fred Mickelson W elcome! This is the first iss'i~e of the Consortium newsletter, through which we'll keep members informed about our activities and upcoming events. The Orange County Economic · Development Consortium is still an evolving volunteer organiza- tion, working under the auspices of the Orange County Chamber of Commerce & Industry. Our mis- sion is to gain greater support for competitive, proactive bUSiness attraction, retention and growth in Orange County. Your cont. inuing input is appreciated, and in fact, is essen- tial The Consor'.ium cannot ade- quate/y serve Orange Ceunty without input from all secto~-s o./' the community,. And success for Orange County will only come through the valuable partnerships we've forged. We look forward to continuing growth and increasing recognition that Orange CounO, is a great place for business. H. Fred Mickelson, Chairman Draft Business Plan To Be i Released A draft business plan has been developed for the Consortium and will be circulated to members and key lead- ers over the next several weeks. The plan addresses the long-term strategy for retention, expansion and attraction issues in Orange Count3,. The planning process brought two important issues to the forefront: what activities car. the Consortium realistical- ly achieve ~'hile functioning as a vol~an- teer organization, and how will those activities be funded? Consortium members and others will be asked for their input, which will be integral to a successful plan that serves all of Orange County. Members of the Consortium have been working hard to promote busi- ness for Orange County. is an update on business retention and attraction activities accom- plished to date: i Business Retention 'The Consortium has talked to more than a dozen Orange County firms considering relocation, provid- ing information, business solutions, and basically getting the message across that someone cares and wants them to stay in Orange County. A.rtcent example was Lot'al AerOnutronic, Inc. When the Consortium learned the firm was con- sidering a move, members met with Loral executives. After months of rec$~iting by representatives from Texas, Arizona, Utah and Nevada, Loral announced its decision to stay in Orange County. According to a Loral spokesperson, the eagerness of Orange County officials to work with the company was a key factor in the firm's decision to stay. Loral will relocate from Newport Beach to a '1.2 million square-foot building in Rancho Santa Margarita, according to Consortium member Tim Joyce, Grubb & Ellis, who was instrumental in the transaction. I.oral is a manufacturer of defense related : products, and employs 1,300 people. ' The Consortium has also initiated : discussions with Taco Bell and others, which will be an ongoing effort (see : story on Project "Red Team"). i ~Orange County businesses are i contacted daily by cities and states trying to lure them away from : : California," said Ken Moore, president : of the Orange County Chamber of : Commerce & Industry. "Once we are · able to meet with them, they often : : conclude that the grass isn't necessari- : ly greener somewhere else." The Consortium also hosted a : morning conference for Orange County businesses this past June at : : the Anaheim Hilton & Towers. This : Business Resource Showcase featured : : speakers and problem-solving : resources and contacts, including a : comprehensive resource guide (copies : are available at a cost of :$60 for non- : members). : · 'Business i A raction In terms of attracting new busi- ness, the Consortium has responded to ten requests from firms expressing interest in Orange County. The Cor~ortium ha~ also participated in half a dozen trade shows to tell corn- ..... panies what Orange Counter has to offer, including the InterPhex Trade Show; Western Electronics Show & Convention; Medical Design & l~/~aqufacturing Equipment Show; Trends 2000 Business Expansion & Relocation Expo; the National Electronic Packaging & Production Conference and the International Biotechnology Exposition. : Great Strides : : ~The Consortium has made great strides thus far," said marketing chair- man and executive committee mem- ber Bob Bunyan, Mission Viejo : Company. "We have a marketing plan that is being implemented, a : draft business plan that is being circu- : lated, and have resr~onded to a number : of requests by businesses for assistance and/or information about Orange · County. Our focus for the rest of this year and into 1994 will be to raise the : capital necessary for us to launch and : sustain a truly effective, competitive : and successful program." : Bunyan also said that the : Consortium is developing a system for lead management that will maximize · · the benefit to prospective firms as well as Consortium members. 'We : initially had some problems with the procedures for disseminating leads to : members. We're learning as we go and, thanks to feedback from our members and others, we're making great progress. : · · · : · : : : : : :. , · Members of the Consortium exec- utive committee have identified sever- al priorities for the remainder of 1993. In addition to finalizing the business plan, fundraising continues : : as a top priority. The goal is to raise : $300,000, with a target of $150,000 : for Phase I. The amount raised to · : date is $70,000, with $;50,000 in : requests pending. Companies that have stepped for- : ward with substantial contributions · (beyond membership) include .: Disneyland,'.Ernst & Young, Orange : 'National Bank, Details, Inc., Mission : Viejo Company, Pacific Bell, The Gas Company, Southern California Edison, McGladrey & Pullen and Fluor Corporation. 'Organizations and cities spend millions of dollars a year on economic development," noted Mike Noonan of Pagific Bell, who chairs the member- ship committee. "We need the finan- cial commitment and participation from the entire county in order to be competitive, and to launch a truly ,,r~ccess ful econom- ic development. program in .~ .~¢0: Orange County." .. ~ Project : "Red Team" Project 'Red Team" is a new pro- gram being developed by the Consortium to quickly respond to companies considering leaving the county. The program is being developed by Retention Committee Chair Sue No..'een of Southern California Ed:.~n. 'Project 'F,.<I Team' will pull together vario'~ individuals from gov- ernment, eduazion and business to call on heads cJ firms who are consid- ering a move,' said Noreen. 'The make-up of th: team will var~. depending or. :he size and location of the company, ~.qd its problems." For instant, when Loral was con- sidering a relc<ation, the team consist- ed of Consorti =-n Chairman Fred Mickekson, Or-,-'~ge Count), Supervisor Tom Rile),, S:i:e Senator Marian Bergeson, and AQMD Chairman Hank Wedaa. · 'We have ~ new regional manager from the State Trade & Commerce Agency, Judy .'..a.-vis, who will be instrumental i: helping us put these teams togethe:.' said Noreen. The plan is :o hold workshops with cities an~ chambers throughout Orange Counr~- to explain the 'Red Team" concet>:, and how to utilize it . as a resource. '.We hope to pull together some z.: the fragmented efforts and de~,:iop a more cohesive and effective sx-..:em for responding to businexs retent)on issues throughout the count3,," N:reen added. :Collateral : Materials Being i Developed : : Collateral =.ateri'~ls that tell the : Orauge Count~- s:ory are being devel- : :~' oped by the Coz. sortium. OrJe will be : a simple, inexT_ec, sive but attractive : pocket brochu?, that will be mailed to : : prospective busS.qe~ses and distributed at trade shows. A second, more elabo- : rate piece will .:.-ovide in-depth infor- : marion to assis: in recruiting firms to Orange Countx. Kay Merchant with : the CiD' of Am--.eim is heading up : : this effort,. : : : TeamCalifornia, a coalition that : brings together organizations involved : in economic development around the . _ state, is developing a State Resource : Guide for problems facing California : : businesses. : Executive committee member Patti Nunn sits on the TeamCalifornia :: Advisory Council, and has long : pushed for stronger statewide recogni- : tion of Orange County. Thanks to her efforts, Orange County was recently : : designated as one of the nine : "Californias" by' the State Trade and Commerce Agency, making ours the only 'stand-alone' county in the State. Executive committee member Bob Bunyan also participates in TeamCalifornia by serving on the marketing subcommittee. ~-~'~-' "--, .o~-...i -~,."~ ~-a~: J ~.'z:*e~ ,~kX~,..~ : The Consortium will sponsor an : important meeting in December, ' Corporate Relocation's: Can Orange : : County Compete? The breakfast will : : be held from 7:30 to 9 a.m. on : · Thursday, December 2, at the Anaheim :: Marriott. Speakers will include John : : Goodman, Professor of the Entrepreneur .: : Program at USC and former head of the : : · Economic Development Caarporarion for : : the St'ate of Texax; .Sandy Smith, : : National Real Estate Manager, Toyota : : : Motor Sales; and Jim Renzas, Executive : : Vice President, Paragon Decision : Resources. Attendees will hear what : : the Consoruum is doing to retain busi- : ! ness and attract new jobs to the : i region. The cost is $15 for mem- ! ben, $20 for non-members. Watch : : for invitations in the mail. For reservations and/or informa- : : tion, contact the Consortium .: at (714) 634-2900, or call o : the toll free number at : (800) 628-8033. eeeee e-ee eeee~e, eeeeeeee eee.e - : Nick Nikkila, : Membership: Executive : South Coast Air Quality : Mike Noonan, Committee Management District, : Pacific Bell, : (909) 396-2660 : (7141 284-2134 H. Fred Mickelson, Chair, : Patti Nunn, '.' Education/Training: Southern California Edison, : Santa Aha Economic : Jane O'Grady, (7141 973-5624 : Development Dept., : O.C. Private Industry Council, Ken Moore, ! (7141 647-6971 : (7141 567-7370 Orange County Chamber of i Jane O'Gr~dy, : Public Relations: Commerce & Industry, : O.C. Private Industry Council, .: Michelle Sweet, (7141 634-2900 :: (7141 567-7370 :: (7141 854-3708 Barbara Brown, : John Sibley, : Marketing: County of Orange, : County of Orange, : Bob Bunyan, · (7141 834-5302 (7141 834-3110 : Ruben Smith, : Mission Viejo Company, Richard Bruckner, : : (7141837-6060, Ext. 2833 City of Anaheim, : Smith & Wolff, : Dala/Statislic$: 254-4300 : (7141 955-1433 : . : Ellie Jordan, : ! State of California, BOb Bunyan, : Mission Viejo Company, ' ............................. : : (7141680-7874 (7141 837-6060, Ext. 2833 iCommittee : Publications: Victoria Cleary, : i Ray Merchant, Orange Redevelopment :Chairs : : City of Anaheim, Agency, : Retention/Expansion: : (7141 254-4249 : (7141 771-2315 : Sue Noreen, : : Christine Diemer, : Southern California Edison, : ............................. Building Industry Association, ! (8181 302-2024 (7141 5530500 : :Members : Attraction: : Ron l~ominguez, : Jim Renzas, Dis~{eyland, City of Anaheim (714) 999-4024 Paragon Decision Resources : City of Brea Dr. Richard McDowell, : (714) 757-2900 : C. alifomia State University, i Trade Shows: : Chapman University, . Fullerton (714) 997-4576 i Mary Oldach, : State of C.~lifornia Employment : City of Fuller~on, : Development Department : (714) 738-6877 : Howard Ecker & Company Ernst & Young City of Fullerton City of Garden Grove Al Gobar Associates City of Huntington Beach Inland Litho City of lrvine Tim Joyce, Inc. Keyes & A~ociates Lee & Associates Lowe Enterprises City of Mission Viejo Mission Viejo Company Oakwood Corporate Apartments City of Orange Orange County Business Journal Orange County Private Industry Council Oreo Block Foundation Pacific Bell Pacific Commercecentre Rancho Santiago Community College District City of Santa Ana Santa Margarita Company South Orange County Bttsine~s Communities Southern California Edison Company Vision Capital Corporation Windrose Construction Company Yorba Linda Chamber of Commerce Orange County Chamber of Comrnetce& lndustr, e One City Boulevard W~t, Suite 401 Orange, CA 92668