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Item 6I Approve Ordinance No. 1161, 2nd Reading, CP16-005, adopting the City of Southlake Economic Development Master Plan an element of the Southlake 2035 Comprehensive Plan. Item 6I 1 Background Southlake 2035 Economic Development PLAN Community Enhancement Development Corporation City Council members - This is item 4C on your consent agenda – First reading consideration of the 2035 Economic Development Plan for the City of Southlake. The council is familiar with the 2030 plan and all the elements. The next phase of comprehensive planning in Southlake, Southlake 2035, is now underway which will include an update of all the 2030 plan elements and the some new additional elements. The comprehensive plan elements are a reflection of the community's values and serves as the blueprint for Southlake's future. The plans establish a frame work for capital projects, resource allocations, programs and shape departmental work plans. The Planning and Zoning Commission play a major role in the development of the Southlake 2035 plan elements and will serve as the committee that will oversee the development of many of the plan elements. Also the City’s charter requires that the Planning and Zoning commission provide a recommendation to the City Council on the comprehensive plan elements. The development of the plan was overseen by the Community Enhancement and Development Corporation (CEDC). This is a newly created board is governed by a board of seven Southlake residents who have been appointed by the City Council. The two primary goals of this board are to work jointly with the City Council to ensure that funds raised through the 3/8 cent Type A sales tax that the voters approved are spent on the construction and operation of The Marq Southlake facility. Also a goal of this board well is pursuing the recommendations of the Economic Development and Tourism Master Plan. The economic goal of the City of Southlake is to sustain a strong and healthy economy. A healthy economy is the foundation of a livable city. In Southlake, it is critical that a dynamic and sustainable economic environment be fostered and maintained. Vibrant commercial and office sectors make it possible to maintain a stable tax rate, meet service level expectations and even offer targeted tax relief through tools such as the homestead exemption. The purpose of this plan is to provide a blue print to ensure that economic development occurs in a successful manner and is aligned with the goals of the city. The plan accomplishes through a series of recommendations that lays out efforts, programs and departmental work plan initiatives. STOP STOP STOP ---------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------ So why is the City updating the plan now? The last economic development and tourism plan was in 2011. Several studies conducted since 2011 adoption More information available today than 6 years ago (MXD Studies) The development of the plan was overseen by the Community Enhancement and Development Corporation (CEDC). This is a newly created board is governed by a board of seven Southlake residents who have been appointed by the City Council. The two primary goals of this board are to work jointly with the City Council to ensure that funds raised through the 3/8 cent Type A sales tax that the voters approved are spent on the construction and operation of The Marq Southlake facility. Also a goal of this board well is pursuing the recommendations of the Economic Development and Tourism Master Plan. In 1979, the Texas Legislature passed the Development Corporation Act of 1979 (Texas Revised Civil Statutes Article 5190.6). The Development Corporation Act of 1979 (the “Act”) allowed a municipality to create nonprofit development corporations that could promote the creation of new and expanded industry and manufacturing activity within the municipality and its vicinity. The development corporations operated separately from the municipalities, with boards of directors that would oversee their efforts. First, in 1989, the Texas Legislature amended the Act by adding Section 4A, which allowed the creation of a new type of development corporation. The legislation provided that a Section 4A development corporation could be funded by the imposition of a local sales and use tax dedicated to economic development. The tax could be levied only after its approval by the voters of the city at an election on the issue. 2 City of Southlake Strategy Map The City of Southlake provides municipal services that support the highest quality of life for our residents, businesses, and visitors. We do this by being an exemplary model of balancing efficiency, fiscal responsibility, transparency, and sustainability. C1 Achieve the highest standards of safety & security C2 Provide travel convenience within City & region C3 Provide attractive & unique spaces for enjoyment of personal interests C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment C5 Promote opportunities for partnerships & volunteer involvement Serve our Customers Manage the Business B1 Achieve best-in-class status in all City disciplines B2 Collaborate with select partners to implement service solutions B3 Enhance resident quality of life & business vitality through tourism B4 Provide high quality services through sustainable business practices B5 Enhance service delivery through continual process improvement B6 Optimize use of technology Provide Financial Stewardship Promote Learning and Growth F1 Adhere to financial management principles & budget F2 Invest to provide & maintain high quality public assets F3 Achieve fiscal wellness standards F4 Establish & maintain effective internal controls L1 Ensure our people understand the strategy & how they contribute to it L2 Enhance leadership capabilities to deliver results L3 Attract, develop & retain a skilled workforce L4 Recognize & reward high performers L5 Empower informed decision-making at all levels in the organization C6 Enhance the sense of community by providing excellent customer service and citizen engagement opportunities L6 Foster positive employee engagement Deliver on Our Focus Areas The City of Southlake works under a Strategic management System and the City staff works closely with the City Council to adopt a Strategic management System based on a balanced scorecard framework focusing on our customers, internal business, financial and learning and growth. Through this system the City can provide more effective services to the citizens. Ultimately the SMS determines how we should invest our time and resources. As such for the all the recommendations in this plan and all comprehensive plans will be aligned with the objectives of the plan as well the objectives outlined on this map. STOP Alignment and framework recap – Remind the committee that the 2035 plan elements are policy documents that provide the framework or blueprint for programs, expenditures, policy, and work plans. Will guide the work of the ED department and other departments for the next five years. All recommendations need to be aligned with the City of Southlake Strategic Map and you will see in the recommendation matrix – the alignment with the strategy map the VGO link and the department responsible for carry out the task. CB04, CBo1, CB05 3 Vision, Goal & Objectives Southlake 2035 Economic Development Plan Vision Statement Southlake will continue to enhance its status as a desirable, attractive, safe, healthy and fiscally-sound community with quality neighborhoods, while maintaining a high standard of living, learning, shopping, working, recreation, and open spaces. Southlake will continue to be a vibrant community that epitomizes both economic and environmental sustainability. Further strategic alignment 4 Enhancement of tax base Improved business climate Implementation of policies to meet objectives Recruitment of target industries Expansion and retention of existing businesses Assistance in the startup of new businesses Strategic communication and marketing ED Plan Strategies Objectives which the committee approved at its first meeting – capsulizing the plan (strategies) 5 TARGET INDUSTRIES MXD conducted research between April 2014 and July 2014, to gain a firm understanding of the existing retail, office, economic and real estate market conditions in the Southlake area and DFW Metroplex.   The purpose of this research was to understand what is the reasonable amount of retail (square footage) the City can support by types, given future market and demographic trends, future shopping habits and expectations, as well as competition. Furthermore, the study determined what types of retail are underserved in the City, what is the trade area served by various categories of retail, and what types of retail are supportable long term and should be attracted? To understand this, MXD performed a retail supply and demand analysis, among other analyses, to come to a conclusion and recommendations. Based on the MXD reports the City has redefined its target areas Niche Retail - Full-service and limited-service restaurants (unique, independent restaurants, farm-to-table, etc.) - Specialty grocery (organic/local, specialty foods, dine-in or take-away house made prepared foods, artisanal cafe, wine and cheese from around the globe) - House & home retail (furnishings and appliances, home design showrooms, smart home technology) - Health, beauty and wellness (salons, spas, fitness training/gyms, yoga studios) - Culinary Hub (farm-to-table, farmers market, specialty food retailers, commercial grade kitchens, culinary business incubator) Office Corporate headquaters and regional offices (large scale, build to suit); Multi tenant garden style (professional services, acountants, engineers, Medical and Health care - Health, beauty and wellness (specialized facilities for cosmetic procedures , healthy living, etc.) - Specialized pediatric and senior clinic / outpatient facilities -Specialized medical facilities for surgical procedures (implanted medical devices, bariatric, etc.) - Medical/wellness hub along SH 114 - Research & Development Center Finance, Insurance and Wealth management - Corporate headquarters and regional offices Information Technology and media Corporate headquarters and regional offices Professional services Telecommunications Biotechnology and Pharmetcituals Corporate headquarters and regional offices Research and development And as you will see in the next few slides there are number of recommendations tied back to the target industries STOP such as 1) alining the incentive policy to meet the objectives of the City to attract target industries, 2) continuous monitoring of target industry performance metrics to evaluate the health of the industry, 3) conducting a continous inventory to ensure saturation is understood, 4) CREATION OF the culinary action plan to attract niche restaurants, 5) collection of health data collection criteria to assist is attracting specialty physicians or other medical/wellness type industries. Also, there are recommendations related to the upcoming Land use plan revision which include possibly defining a medical corridor and defining more specific areas for multi-tenant garden office. 6 4 Areas of Focus Southlake 2035 Economic Development & Tourism Advisory Board Sec. 3 - Southlake Market Sec. 4 - Economic Incentives Sec. 5 - Business Retention and Expansion Sec. 6 - Citizen and Community Engagement There are 4 main sections or areas of focus of the plan. This includes: Section 3 - The Southlake Market section focuses on attracting and promoting the City’s target industries, and promoting key areas for development along the major corridors. Sec. 4 The Economic Incentives Section is focused on providing recommendations that facilitates investments and motivates businesses to locate in Southlake. Sec. 5 Business retention and expansion section makes recommendations regarding the retention and expansion of existing businesses. It is the intent of this section to help the City understand local business needs and respond - so that businesses stay, grow, and become more committed to the community. Sales tax = revenue – keeps City taxes low. Sec. 6 And lastly, Citizen and community engagement section will be focused on the efforts in the plan to reach out to Southlake’s local residents and promote the economic development efforts in the community. – including ROI on incentivized developmnent. 7 SUMMARY - SOUTHLAKE MARKET RECOMMENDATIONS Customer Relationship Management Tool Target Industries Small Area Planning Daytime Population GIS Based Multimedia Southlake’s market and economic position I will quickly go over the recommendations for each section - Page 31- Report CRM ED 1 – Create a strong network of relationships that will generate high quality leads Implementation of the customer relationship management tool - refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. Recommendations ED 2 – 7 are related to the City’s identified target industries ED 2 – Use data to quantify the strength of the City’s target industries Addresses Use of data to monitor and target industry performance measures, inventory, saturation points); ED 3 – Addresses the attraction of unique and independent restaurants (development of a culinary plan); ED-4 – addresses promotion of Southlake as a medical wellness hub – which specialties would do well given our demographics and income level. ED 5 – Identify a medical district on the SL land use plan (114 easy access); ED-6 Encourage development of office campuses (Corporate headquarters north of SH 114 – certain land areas should be prioritized for incentives. ED 7 – Evaluation Multi tenant garden office supply and demand – identify these areas more specifically – not on SH 114. ED 8 and 10 – Small area planning – Carillon specifically identified. Other critical areas. ED 9 _ Multimedia – Develop and provide GIS – based multimedia and map based web services that provided information on key sites – point out the number of applications. (Marketing and Promotions) ED 11 – Daytime population – study to define a healthy daytime population – maintain service level – market provide through daytime population not rooftops. ED 12 – Communicate SL advantageous market and economic position. Updating proposal templates to respond to respond to prospects more quickly; Create sales presentation templates to showcase for prospects and site selectors; marketing materials that promote the benefits of being in SL airport, world class business workforce, (Marketing and Propmotion) 8 SUMMARY – ECONOMIC INCENTIVE RECOMMENDATIONS Strategic Investment of Public Funds Public Investment Monitoring and Reporting Funding Economic Development Goals Page 39 ED 13 – Facilitate Strategic Investment of public funds to attract and retain high quality businesses – Clear economic development incentive guidelines aligned your EDT plan (target industries), policy should be quantifiable in nature (results based) so that ROI can be determined as wwll as quality of life benefits. ED 14 – Ensure ongoing monitoring and reporting of projects that receive incentives. ED 15 – Maintain dedicated funding to achieve economic development goals ED 16 - Set up a process so CEDC board can ensure that CEDC and Economic Development and Enhancement fund spending are in accordance with golas, policies and recommendations of the master plan. Establish an economic development investments fund to help retain and attract employers, as well as to retain and expand existing businesses, 150 K – 250 K moving forward. Fund balance 1.9 million. 9 SUMMARY – BRE Recommendations Commercial Centers Business Owners/Employers Alternative Mode of Transportation Business Community p. 46 ED 17 & 18 – Create opportunities for the City to learn about concerns and need of the business community (visitation program w performance metrics); Hosting of round tables. (18) marketing of new businesses – creation of a marketing plan ED 19 – Improve and strengthen existing commercial centers – monitor leasing activity, create a plan for assisting property owners and brokers with marketing large vacancies, help identify and implement solutions such as traffic/parking that discourage shopping and dining ED 20 & 21 – Ensure adequate networking opportunities for business owners exist - work with strategic partners to enhance networking programs for the entire business community, (21) conduct a business climate survey. ED 22 – Provide an alternative mode of transportation with key stops in the City. 10 SUMMARY – CITIZEN AND COMMUNITY ENGAGEMENT Recommendations Promote Awareness of ED Activities Communication – Exceed Industry Standards Page 50 ED 23 – Promote awareness of economic development activities – is can be trough an annual report, multimedia tools, social media ED24 – Host a website that is professional and exceeds industry standards – review the web page against International Development Council best practice standards – use web page analytics to analysis and customer inpu to upgrade the web site. ED 25 – Provide relevant and interesting business and economic news on a timely basis (blog, annual economic vitality report – new businesses, business expansion, occupancy rates by sectors – by development, jobs created, daytime population. 11 CEDC/PZ Recommendations June 28, 2016 - The CEDC approve (7-0) the proposed Southlake 2035 Economic Development Master Plan as presented. August 16, 2016 - The Planning and Zoning Commission held a public hearing on the proposed Economic Development Plan (Approved 4-0). September 6, 2016 – The City Council approved on consent (7-0). 12 Questions 13 Vision, Goal & Objectives Southlake 2035 Economic Development & Tourism Advisory Board Objective 6.6 Develop a clear and understandable incentive policy that accomplishes the business attraction and retention goals of the City and is based on factors such as job creation, investment, quality of business, return on investment and overall value to the community. Objective 6.7 Foster communications between the public and private sectors. 14