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HomeMy WebLinkAboutResolution - 3337 - Adopts Econonomic Development Plan - 03_22_1990Resolution # 3337 March 22, 1990 Item #26 JCR:da RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Lubbock Economic Development Plan attached herewith is hereby adopted as the official Economic Development Plan of the City of Lubbock, a copy of which has been filed in the office of the City Secretary, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 22nd day of March , 1990. 6. C. McMrNN, MAYOR Hanette soya, city secretary APPROV TO CONTENT: Rod lis, Business Liaison Officer APPROVED AS TO FORM: ohn C. Ross, Jr., City Attorney e i� 3337 LUBBOCK__woo 0 50,00 0 0 0 �Ma� !!M TEXAS Economic Development City Council Economic Development Philosobh� "To the extent that Lubbock competes with other cities for economic development in a rapidly changing global econ- omy, we must maintain an economic development plan which makes us more knowledgeable, more responsive, more creative and more flexible than our coTRetifors. We cannot and will not accept less than success . Lubbock City Council February 8, 1990 Lubbock Economic Development Plan Lubbock Economic Development Vision "The vision of Lubbock's Economic Development Plan is to promote expanded, diversified job opportunities which will assure a healthy tax base and an excellent quality of life for all citizens". Lubbock City Council February 8,1990 PREFACE As Lubbock competes with other cities for economic development and business prosperity in the rapidly changing global economy of the 1990's, civic and business leaders must work to- gether to promote our success and answer the challenges which lie ahead during this decade. This Five -Year Economic Development Plan must be embraced and implemented with a spirit of cooperation, teamwork and community pride if the specific action items are to achieve the stated goals. All Lubbock citizens must recognize the potential of our community, we must work together to promote our positive assets and support the changes necessary to bring about growth and prosperity in our community. The City Council's vision of this Economic Development Plan is to promote expanded, diversified job opportunities which will result in a healthy tax base and an excellent quality of life for all citizens. The plan elements must be reviewed annually by the Council to identify successes as well as setbacks and to re-evaluate the philosophy, vision and goals of this plan. Ongoing progress on the action items must be monitored closely and citizen input should be used to revise the plan when needed. The City's Economic Development Plan should be reviewed frequently to deter- mine the extent to which the assigned actions have achieved the related goals and the extent to which our "vision" has been accomplished. All economic development actions and expendi- tures must be measured against the specific goals in this plan. Each action should lead toward accomplishment of our goals. The activities of all economic development service providers must be mutually supportive. The Council must ensure through adequate monitoring and evaluation that the work of all economic development service providers is coordinated in order to accomplish the plan goals. Local economic development activities are changing rapidly and have evolved into a complex and sophisticated system involving many entities -- some well -established and some new to the scene. Rapid changes in the national and global economic environment threaten the economic well-being of many communities and often make local opportunities for growth difficult to identify. Competition for these opportunities has become intense as creation of new jobs and investment has become the number one priority for almost every community in America. To succeed in this environment, Lubbock must posture itself to maintain a flexible economic development plan and associated implementation strategy which will allow us to be more resourceful and responsive than our competitors. Effective implementation of this Economic Development Plan depends on the involvement and commitment of local public and private sector leaders. It is critical that strong community leaders serve as key players in our economic development programs and specifically in the implementation of this plan. Community leaders have access to the resources we need and can involve and motivate others in our community who will help promote our success. In summary, economic development for our community is a top priority which must be viewed as a proactive process between government and the private sector. To fully use all of Lubbock's many resources and assets, a true public/private partnership must be established which will allow us to quickly recognize positive growth opportunities and to pull together the resources needed to effectively compete for these opportunities. When a city develops a true entrepre- neurial economy, then prosperity occurs in unexpected ways! Economic Development Plan TABLE OF CONTENTS Page Vision Statement----------------------------------- i Preface------------------------------------------ ii Overview----------------------------------------- 1 Legal Authority for Economic Development - - - - - - - - - - - - - - - 2 Lubbock Economic Development Planning Process - - - - - - - - - - 3 Economic Development Roles------------------------- 4-5 Organization Chart--------------------------------- 6 Definitions for Action Priorities------------------------ 7 City Council Economic Development Goals and Actions------------------------------------------ 8-22 - Business Retention and Expansion ................................. 8-11 - Small Business Development ...................................... 12-13 - Industrial Attraction and Recruitment .............................. 14-15 - Vocational/Technical Training ..................................... 16 - Infrastructure and Public Services .................................. 17-18 -Financing and Incentives .......................................... 19 - Quality of Life ................................................... 20 - Marketing and Promotion.........................................21-22 LUBBOCK ECONOMIC DEVELOPMENT PLAN An Overview The "Economic Development Plan" for Lubbock is similar to a "Business Plan" for a private business. It deals with terms and concepts, such as Economic Development, vision, and goals and actions (including timetables, responsibilities, and accountability). For the purpose of this plan, those terms are defined as follows: ECONOMIC DEVELOPMENT is a net increase of new jobs and/or investment within the Lubbock environs, while maintaining existing jobs and investment that other- wise appear destined to leave the City. Activities or enterprises which appear to simply shift jobs or investment from one sector of the local economy to another, will not typi- cally be viewed as economic development activities/initiatives insofar as this plan is con- cerned. VISION for economic development should inspire and set the tone for all future goals, strategies, actions and accountability for implementation. GOALS should express ideal ends to be achieved or to which we should aspire. They should guide specific actions/strategies. Total attainment of goals is meant to occur over a long time frame. ACTIONS are the critical, specific action -oriented elements of the plan. They should set timetables, responsibilities, funding and accountability for implementation. The organizations assigned responsibility for implementation should have flexibility to modify or expand these actions during the annual city budgeting process. The Economic Development Plan establishes specific action steps for economic development over a five-year period. It also includes a one-year, "work program" linked to the annual City Council budget and Capital Improvements Program. The one-year work program is updated annually. The overall plan should be analyzed each year with modifications or reaffirmations of the established philosophy, vision, goals and actions. The following pages describe in more detail the background leading up to the creation of this plan, its organization, and specific implementation plans. - 1 - LEGAL AUTHORITY Recent changes in State Law have dramatically altered the manner in which Texas municipali- ties may function in the area of economic development. This is especially true in the City of Lubbock. Basically, the changes stem from three laws: 1. HB 3192 -- This particular statute grants new and previously unauthorized pow- ers to the governing body in the area of economic development. The law specifi- cally makes the Governing Body (in our case -- the City Council) accountable and responsible for its programs of economic development. In essence, it makes the governing body the major force in local economic development. Greater flexibil- ity is granted to the governing body in determining how it carries out its programs. 2. HB 28 -- This statute, passed in the 1989 special session of the Legislature, com- plements and clarifies the Council's authority in the area of real estate acquisi- tion. 3. SB 971-- This statute is a companion to HB 3192. SB 971 authorizes the Council to create a non-profit corporation which can exercise some, but not all, of the powers vested in the Council by HB 3192. Such a corporation is nevertheless subject to complete control by the Council. The primary source of funds for the operation of the corporation is the sales and use tax. This tax may only be imple- mented by a vote of the people. As one reads these statutes, it is clear that the intention of the Legislature is to place the Coun- cil in complete control of its program or programs for economic development. The Council is required to be responsible and accountable for the expenditures of public monies for economic development. The Council is required to be responsible for its programs. While the Council has greater flexibility in administering its programs, certain duties are placed on the Council which may not be delegated to others. Only the Council may make grants of public money for economic development purposes and, in the absence of the corporation authorized by SB 971, only the Council may make loans of public money for economic development purposes. While that portion of the City of Lubbock Charter which requires the Council to appoint a 15- member Board of City Development is not inconsistent with State Law and remains an oper- able part of the Charter, the new statutes noted above have altered the operations of the Board somewhat. For example, the provision in Chapter Three of the Charter requiring the mill tax allocation to the BCD is now determined to be inconsistent with State Law and does not con- tinue to be effective. Only the Council may now determine how to fund programs, to what extent they will be funded, and whether or not they shall be funded. While the Council is still able to assign certain duties to the BCD, the Council cannot delegate any of the non -delegable duties placed upon the Council by the State Law. The Council may use the BCD in an advisory capacity and/or assign specific tasks of work identified in its program or programs for economic development within the City. In summary, State Law has dramatically changed the role of the Council in economic develop- ment and has also impacted the Charter provisions regarding the BCD. - 2 - 71 LUBBOCK ECONOMIC DEVELOPMENT PLANNING PROCESS The Economic Development Plan for Lubbock is a guide for an on -going "process." It recognizes that change will occur and, therefore, is designed to adapt quickly. The following describes the process followed in creating the plan, as well as the process for updating it in the future: ORGANIZING FOR PLANNING *Establish the Council's legal responsibility for economic development. *Obtain broad -based citizen input on issues. *Establish an economic development planning philosophy and adopt an economic development vision for the future. *Establish Economic Development Roles. *Establish an organization chart for implementation. IDENTIFY AND PRIORITIZE ECONOMIC DEVELOPMENT OPPORTUNITIES *Determine critical economic development issues. *Establish kev economic DEVELOP WORK PLANS *Adopt strategic actions/initiatives. *Agee on a 5-vear elan and one-year work ORGANIZE FOR IMPLEMENTATION *Establish/identify the organizations to implement the plan. *Adopt the economic development plan by resolution. *Assign economic development responsibilities by contract. *Fund the one-year work programs. *Monitor ongoing progress. *Evaluate successes and setbacks. *Annually re-evaluate philosophy, vision statement, goals and proposed five-vear actions. - 3 - ECONOMIC DEVELOPMENT ROLES In order for economic development actions to proceed in an orderly and efficient manner, it is essential that the roles of economic development participants be well defined. For the pur- poses of the Economic Development Plan, the following roles have been established by Coun- cil: CITY COUNCIL *Establish the philosophy, vision, and overall direction for economic development in Lubbock. *Create the overall economic development plan and program and function as the "Board of Directors" for the City corporate. *Set goals and approve annual work plan. *Approval and award of contracts with SERVICE PROVIDERS. *Provide budgeted funds for SERVICE PROVIDERS and require performance reports. * Establish reporting guidelines to measure effectiveness of economic development actions and develop methods of strict accountability for funds disbursed under the economic development plan. *Annually review the economic development program and modify the plan as needed. *Provide and administer capital project fund expenditures for economic development. *Maintain communications between economic development organizations to minimize overlap and duplication of services. *Set policy for city staff roles in economic development activities. *Set policy for economic development incentives (loans, grants, bonds, etc.). CITY STAFF *Provide administrative support to City Council, including drafting of overall program and annual plan in accordance with Council directive. *Prepare request for proposals for annual economic development work plan. *Assist in evaluation of proposals. *Contract monitoring and compliance. *Report to Council as needed/requested. * Maintain communications between economic development organizations to minimize overlap and duplication of services. - 4 - BOARD OF CITY DEVELOPMENT *Advisor to Council on economic development programs, when requested. *Assist Council in evaluating requests for funding, when requested. *Recommend direct economic development assistance. *Provide economic development services as assigned by Council. *Report to Council as needed/requested on performance and goals attainment. * Maintain communications between economic development organizations to minimize overlap and duplication of services. SERVICE PROVIDERS *Respond to request for proposals. *Provide services, as required by contract. *Report to Council as needed/requested on performance and goals attainment. * Maintain communications between economic development organizations to minimize overlap and duplication of services. * The City Council may ask and seek advice from any service provider, as needed. - 5 - 0 ECONOMIC DEVELOPMENT ORGANIZATION CHART The following chart shows, in graphic form, the roles to be assumed by the various Economic Development groups in the City: BCD ---------------- City Council ---------------- City Staff BCD I Non Profit I I Non Profit or Others or Others Tasks Assigned (i.e. Chamber (i.e. Chamber by Council of Commerce, of Commerce VCB VCB COMA COMA Black Chamber Black Chamber Others) Others Tasks by Tasks by Contract Contract Non Profitl IFed., State or Others] other Gov. (i.e Chamber (i.e. Tech, of Commerce SPAG,SBDC, VCB PIC, COMA Etc.) Black Chamber Tasks by Others Contract Tasks by Contract Roles for Service Providers Respond to request for proposals. Report to Council on performance. Provide services as assigned or by contact. City Gov. (Infrastructure & Public Serv.) Tasks Assigned by Council (Business Retention, Small Business Industrial Attraction, Training, Infrastructure, Incentives Quality of Life, Marketing, Etc.) DEFINITIONS FOR ACTION PRIORITIES In the section immediately following this page, specific goals and actions are set forth. In order that the reader might fully understand the significance the priorities assigned to each, the fol- lowing definitions are provided: Definition For Top PrioriWOngoing Activity - Actions that show greatest, immediate to one-year, potential for increasing jobs and expanding the tax base or improving quality of life factors. Some top priority action items should be ongoing from year to year. Definition For High Priority - Actions that show immediate to three-year potential for increasing jobs and expanding the tax base or improving quality of life factors. Definition For Moderate Priority - Actions that show three-year or longer potential for increasing jobs and expanding the tax base or improving quality of life factors. - 7 - City Council Economic Development Goals and Actions While Economic Development "visions" and "goals" provide the basic direction for the economic plan, the essential elements of a plan that bridges the gap between plans and results are "actions" assigned to economic development service providers. The following "actions" are linked to their associated goals and are prioritized. The top priority actions generally outline an "Annual Work Program" which assigns first -year actions to be carried out in the upcoming municipal fiscal year. All other actions are prioritized for subsequent action in the five-year plan period. Specific actions will be committed in the annual municipal budget, by formal agreement, or by contract with service providers. Actions: A. Conduct an annual personal survey of busi- nesses to determine problems, concerns or expansion opportunities: Link identified problem, concern or expansion opportunity with appropriate resource within 30 days. . Respond to every business within 60 days. B. Improve communications and cooperation between all economic development organi- zations. Establish monthly meetings be- tween heads of all city -funded economic development agencies, rotated between agencies. Discuss programs, projects and opportunities for our City. City Council to provide staff liaison between Council and economic development agencies. Staff economic development liaison to attend monthly meetings. City Council to be invited to monthly meetings. Priori Top Top C. In E. F. Coordinate closely with Centercorp and sup- port activities of their business plan for revi- talization of central Lubbock. Identify an "early action" project for central Lub- bock and structure a tax increment financing plan geared toward achieving these development is- sues. Examples of projects are: Sports Arena for downtown. Specialty retail clus- ter Convention Center Hotel Retain Reese Air Force Base and promote the expansion of its national security mis- sion. . Complete airport zoning for Reese Air Force Base. Promote and expand the Host Family Program for Reese personnel. . Conduct a minimum of two marketing/expansion trips each year to visit legislative and military officials. Develop and maintain a program of complete community support for all Reese activities. Promote and expand Lubbock's medical/ health care industry. Conduct a survey of all medical/health care pro- viders to determine needs and opportunities for industry growth. Develop complete report on findings and recom- mendations. Expand the City's manufacturing base. Maintain an active manufacturing task force. Communicate to Council and the public, manu- facturing expansion needs. Priori Top High Top Top Top High Top Top Top Top Top Top G. Maintain legislative support for Texas Tech University and its programs. Establish an on -going task force to actively sup- port and promote legislative needs and opportu- nities. H. Ensure that Lubbock remains a center for regional retail activities and grows as new goods and services are added. Develop specific marketing themes and materials (T.V., radio, newspaper and magazines to pro- mote and advertise our assets). Continue to promote the local wine industry. I. Review tax abatement policies and other in- centive programs to determine if they apply favorably to expansion of existing indus- tries. J. FS L. . Report to Council on findings. Keep businesses informed of growth incentive programs. Promote the development of agricultural industries. Maintain a business liaison office in City hall to assist in delivery of city -related services -on development issues. Continue other programs and informal efforts to strengthen relationships between the City of Lubbock and the business community. Maintain business luncheons. Maintain monthly development group and busi- ness association meetings. City departments to assist industry in finding so- lutions to growth -related problems. Expand the tax base in all parts of the city with special emphasis to areas where the tax base is now eroding. Priority Top Top Top Top Top Top Top Top Top Top Top Top Top Top High M. Create an innovative financing program to assist existing companies with expansion plans. Keep businesses informed of financ- ing opportunities. N. Develop new avenues of national and inter- national trade. . Evaluate Sister Cities program. O. Carry out aggressive recognition and appre- ciation program for existing businesses. Priority High High High High t1l:L1UU1J- A. Create innovative incentives to help existing companies expand. . Coordinate through Small Business Development Center. Identifying Funds - Continue program which acts as resource base to entrepreneurs. Establish risk capital plan to provide start-up and second stage financing for small companies. B. Continue and market SBDC counseling programs to benefit the long term growth of Lubbock. C. Conduct monthly education seminars through SBDC for small business development. D. Maintain and promote export assistance program for small business. E. Maintain and market Bid Procurement Program to assist small companies to bid on government contracts (with emphasis on minority owned enterprises). F. Investigate establishing a system for disad- vantaged business certification. G. Continue Small Business Recognition Pro- gram. H. Improve communications and cooperation between all economic development organi- zations. Monthly meetings between heads of all City fund- ed economic development agencies. Priority Top Top Top High Top Top Top Top Top Top Top Top - 12 - I. Establish business incubator. Review other cities with successful projects. Identify alternative sites. Continue working with BCD and provide support for creation of Business Incubator Center. J. BCD implement based on control data study. (Develop and operate a business incubator in Lubbock) Provide technical assistance and product review to businesses using resources avail- able at Texas Tech University. To include: Cost effective manufacturing methods, prototype evaluation, quality assurance methods and testing of new products. Develop a newsletter for small business regarding available resource information. * When feasible, the City Council desires to use the services of the Black Chamber of Entrepreneurs and COMA to provide small business resource programs to minority -owned enterprises. Priorily Top Top Top Top Top High High - 13 - Actions: A. Develop aggressive industrial attraction promotion program including advertising, direct mail and personal contact with tar- geted industries. Leverage all resources at Texas Tech University, Lubbock Christian University, South Plains Col- lege and Wayland Baptist College. B. Market and promote agricultural industry development. C. Market and expand Lubbock's medical industry. D. Market and expand Lubbock's wholesale distribution industry. E. Market and expand City's manufacturing base. F. Build and maintain business recruitment contact team -- bringing together utilities, transportation, education, etc. G. Package total incentive programs for tar- geted industries (tax abatement, utilities, land, buildings, financing, start-up training programs, etc.) Packaging - Total unit would involve site, money tax, labor, education, quality of life. Packaged for specific industries. Function to be centralized. H. Maintain business attraction actions which focus on: . Promotion Personal prospecting Handling prospects on site Servicing needs of prospects Priority Top High Top Top Top Top Top Top Top Top Top Top Top - 14 - . Maintaining adequate research I. Improve communications and cooperation between all economic development organi- zations. Monthly meetings between heads of all City funded economic development agencies. J. Develop an industrial research park. . Conduct feasibility study and market analysis. . Identify alternative sites. Identify infrastructure components (transporta- tion, utilities, rail, etc.) If feasible, provide capital funding and market incentives for development. K. Develop new avenues for national and in- ternational trade and foreign investment. Write targeted marketing plan. L. Establish Venture Capital Fund. (A source of money to purchase and develop com a- nies as part of the infrastructure needs M. Investigate creating an enterprise zone (Purpose is to create jobs in distressed areas of Lubbock to encourage redevelopment, business retention, expansion, or start-up companies in this area. N. Develop workable Freeport Law. Priori Top Top Top Moderate High High High Moderate High High High High High 15 - Actions: A. Annually assess and project vocational train- ing needs by job skills. Coordinate closely with the manufacturers task force. . Keep City Council and public informed. Provide assistance to local companies needing or seeking assistance to recruit, screen, train or re- train employees. B. Provide educational support for jobs. Call for an election to establish a technical train- ing program. . Determine training needs. Determine organization(s) to provide services. Develop vocational/technical training program for labor force. C. Improve communications and cooperation between all economic development organi- zations Establish monthly meetings between heads of all City -funded economic development agencies, rotated between agencies. Discuss programs, projects and opportunities for our City. D. Determine Texas Tech University's role and resources for technical training. E. Develop strong community education infra- structure. Priority Top Top Top Top Top Top Top Top Top Top M High High - 16 - Actions: A. City Council shall support the utility and infrastructure needs for Lubbock's future. B. Annually update surveys which compare cost of infrastructure and services to compe- tition cities. . Take follow-up actions to remain competitive. C. City staff shall perform basic services well, with customer oriented attitudes. D. City to take business -type approach to ex- penditures. . City to justify costs and provide accountability. E. Develop the East/West Freeway. F. Continue an aggressive highway develop- ment program to secure an extension of Interstate Highway 27 South to connect with Interstate Highway 10 and 20. G. Continue an aggressive highway develop- ment program to secure a four -lane highway between Lubbock and Dallas/ Ft. Worth as well as a four -lane highway connecting Lubbock with Austin and Houston. H. Enhance Lubbock International Airport Service/Development. Develop more hubbing operations. Attract more airlines to ensure adequate service to enhance business development. Priori Top Top Top Top Top Top Top High High High High High 17 - I. J. K. L. M. Maintain modem, convenient airport facilities that establishes Lubbock as a leader in aviation services. Market and develop the airport's industrial de- velopment opportunities. Develop East Lubbock and other underde- veloped areas. Identify and market development opportunities. Develop incentives to offset low market de- mand. Minimize dividing effects of I-27 and East/ West Freeway. Develop Broadway streetscape linkage. Develop a public art display at Broadway and I-27, symbolizing unity. Develop regional solid waste program. Conduct feasibility study and identify lead entity. Improve Mackenzie State Park. Gain local control of the park. Investigate re-establishing a first-class RV park (develop and market). Review and update the master plan. Investigate vehicular and pedestrian pathway continuity between Mackenzie and Canyon Lakes system. Develop an outer loop for Lubbock. Priority High Top Moderate High High Top Top High Moderate Moderate High High High High High Moderate Actions: A. Annually update survey which compares Lubbock's economic development incen- tives and financing options with competing cities. B. Provide clearinghouse for all economic development financial resources/incentives. C. Create venture capital/risk capital funds. . Implement BCD plans. D. Review tax abatement plan. . Identify plan components needing modification. . Report to City Council. Priority High High High High �Z Actions: A. Improve Lubbock's image by cleaning up environment. . Continue active code enforcement in all areas. Establish corridor and gateway beautification plan. Continue median and right-of-way cleaning. Encourage businesses and institutions to plant trees, flowers and flowering shrubs. Support work of "Keep Lubbock Beautiful" program. Maintain a recognition program for individuals or businesses for outstanding contributions toward development of a positive image for Lubbock. B. Enhance Lubbock's cultural awareness. Encourage wide -spread participation in the Arts Festival and wine classic. Support performing arts programs (ballet, sym- phony and theater arts). Investigate a Black Cultural Center. Encourage widespread participation in Fiestas Del Llano. Create an attractive brochure which emphasizes Lubbock's multi -ethnic population, and identifies cultural activities, facilities and offices. Priori Top Top High Top High Top High High High High High High High EWE ACUU1i5- A. Expand tourism and convention busi- ness in Lubbock. In C. Increase promotional activities. Review Convention Board structure and activities. . Aggressively pursue new convention oppor- tunities for Lubbock. Expand bus tour program. Review Convention Board funding. Maintain an aggressive legislative af- fairs program (State and National) to capitalize on funding opportunities for Lubbock. Data Base Research/Development. Maintain existing data base for economic indicators. Develop targeted industry data base. Maintain inventory of all available indus- trial sites and buildings by size, owners, terms, zoning, utility availability, develop- ment features, etc. Create and maintain complete data base on job growth, including payroll in all employment sectors. Prepare and provide monthly statistical reports and surveys necessary to imple- ment the economic development plan. Establish and maintain high quality infor- mation reports and packets on Lubbock community data. Priority Top Top High Top High High Top Top Top Top Top Top Top Top - 21 - D. Improve City's economic development marketing program. . Develop regional marketing strategies which target cities in our wholesale/retail trade areas. E. Improve local attitudes through internal promotions. Priori High High High 22 -