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HomeMy WebLinkAboutResolution - 1870 - Agreement - City Venture - Small Business & Job Creation Assessment - 11/08/1984f DGV:da Resolution #'1870 % November 8,, 1904 Agenda;;Xtem .#31'- RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an agreement for an assessment and associated documents designed for small business and job creation within the City of Lubbock to be performed by City Venture Corporation of Minnesota, which agreement is attached herewith 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 8th _ day of November , 1984. ATTEST: e Boyd, City Secretary APPROVED AS TO CONTENT: C&1/L4e Rickey Chil ers, Assistant to the City Manager APPROVED AS TO FORM: uona.ia u. vanaiver, Attorney a y DGV:da Resolution #'1870 % November 8,, 1904 Agenda;;Xtem .#31'- RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an agreement for an assessment and associated documents designed for small business and job creation within the City of Lubbock to be performed by City Venture Corporation of Minnesota, which agreement is attached herewith 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 8th _ day of November , 1984. ATTEST: e Boyd, City Secretary APPROVED AS TO CONTENT: C&1/L4e Rickey Chil ers, Assistant to the City Manager APPROVED AS TO FORM: uona.ia u. vanaiver, Attorney a y CITY VENTURE corporation January 29, 1985 Mr. J. Robert Massengale Assistant City Manager Cith Hall, City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Dear Mr. Massengale: Mite Suite 300 400 Marquette Avenue Minneapolis. Minnesota 55401 (612) 375-8050 Enclosed is a fully executed copy of the agreement by and between the City of Lubbock, Texas and Cit.y'Venture Corporation. We apologize for the delay in sending this to you. Sincerely, F. . �ranklin Di ctor F' nce and Administration FCF/wc Encl. a STANDARD FORM ENGAGEMENT AGREEMENT THIS AGREEMENT is made and entered into as of this 8th day of November , 19 84 by and between the City of Lubbock, Texas, a municipal corporation (herein the "City"), and City Venture Corporation, a Minnesota corporation (herein "CVC"). WITNESSETH: WHEREAS, the City has expressed a strong interest in economic revitalization and job creation through small business; and WHEREAS, the City, jointly with City Venture, has prepared a proposal for an assessment/design for small business and job creation, and the City has reviewed this proposal; and WHEREAS, the City desires to engage CVC to provide certain services leading to the development of this assessment/design in order to promote and stimulate the revitalization of the City, upon and subject to the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the mutual covenants, promises, conditions and terms to be kept and performed, it is agreed between the parties as follows: Section 1, Engagement. The City does hereby engage CVC to provide the services more fully described herein in connection with the preparation and development of the assessment/design for the City. FRED:Section 2. This agreement consists of this document and Exh bit 'A' attached hereto and incorporated herein. FREQ:Section 3. Scope of Services. CVC does hereby agree to undertake to provi a the services and assume the responsibilities defined in Exhibit "A" annexed hereto in substantially the manner, form and terms contemplated herein. All services required hereunder will be performed by or under the supervision of CVC. No change may be made to the scope of services without the prior written consent of the parties. IT IS UNDERSTOOD BY THE PARTIES HERETO, THAT TO THE EXTENT THAT THE PROVISION OF SERVICES DEPENDS UPON THE PERFORMANCE OR COOPERATION OF THE THIRD PARTIES, CVC CANNOT GUARANTEE THE MANNER, FORM OR TIME OF COMPLETION. Section 4. Term of.Engag�ment. CVC will begin its efforts on December , 198 , and shall continue said efforts until July 31, 1985, or completion, whichever is earlier, and which term shall be hereinafter referred to as the "Assessment/Design Phase." Section 5. Compensation. In consideration of its efforts hereunder during the Assessment/Design Phase, CVC shall receive the sum of Seventy -Five Thousand Dollars,($75,000) which sum shall be paid as follows: (a) 10% at contract signing (b) 40% at completion of Phase 1 (c) 40, at completion of Phase 2 (d) 10% at completion of remaining work Section 6. Covenants of the City. In order to facilitate CVC's efforts hereunder, and in addition to those specific covenants more particularly set forth in Exhibit A "Scope of Services", the City hereby covenants and agrees to: (a) Undertake to furnish CVC, without charge, all available information, data, reports, studies, surveys, records and maps reasonably required by CVC as a pre -condition to or in order to document the preparation of the assessment/design or any implementation in connection herewith; (b) Assist CVC in developing a fair and equitable process ensuring timely involvement of neighborhood residents, other community-based interest groups, and business persons likely to be directly affected by the strategy and its ultimate implementation; (c) Review and accept the assessment/design in a timely manner and provide CVC with a reasonable opportunity to modify and portions thereof to which the City takes respon- sibility and timely objection in writing; (d) Provide reasonable office space and access to a telephone; (e) Designate a person to act as a liaison to CVC for purposes of developing and overseeing the strategy develop- ment. Section 7. Progress Reports. CVC may submit programmatic progress reports with respect to its efforts and activities hereunder as may be reasonable and agreed to by CVC and the liaison. These reports shall be submitted to the designee of the City and shall outline in reasonable detail the nature and extent of its activities and projected plans. When requested by either party, conferences shall be held to resolve any questions or disputes which may arise. Section 8. Termination for Cause. If through any legal cause either party fails to fulfill in a timely and proper manner, any material obligation hereunder, or if either party violates a material covenant, agreement or stipulation contained - 2 - herein, the non -breaching party shall have the right to terminate this Agreement by giving written notice thereof to the other party at least thirty (30) days prior to the date of termination. Each party shall have said thirty (30) days in which to remedy the alleged material breach, but if the circumstances which are the subject of the allegation have not been reasonably remedied at the end of said thirty (30) day period (or longer period if mutually agreed), then the party giving such notice may terminate this Agreement. Section 9. Interest of Member of City. No officer, member or employee of the City, and no member of its governing body and no other public official of the governing body of the locality or localities in which the undertaking is situated or being carried out shall exercise any functions or responsibilities in the review or approval of the undertaking or carrying out of this Agreement which affect his personal interest or the interest of any corporation, partnership or other entity in which he is directly or indirectly interested; nor shall any such officer, member or employee of the City, or any member of its governing body, or public official of the governing body of the locality or localities in which the undertaking is situated or being carried out, have any interest, direct or indirect, in this Agreement or the proceeds hereof. Section 10. Political Activities. No funds hereunder shall be used or any partisan p6litical politicalactivity or to further the election or defeat of any candidate for public office; nor shall they be used to provide services or the employment or assignment of personnel in a manner supporting or resulting in the identifi- cation of programs/projects conducted or operated pursuant to this Agreement with: (a) Any partisan or non-partisan political activity or any other political activity associated with a candidate, or contending faction or group, in a public election or party office; (b) Any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election; or (c) any voter registration activity. Section 11. Limitation of Liability. CVC shall be liable and hold the City harmless for any direct loss or damages for any personal injury, including death, or damage to tangible personal property caused by the negligence or wrongful act of CVC in the performance of work or provision of services covered by this Agreement. Each party shall waive and grant special, incidental or consequential damages against the other for any claims arising from the delivery of services hereunder, but such waiver shall - 3 - not be construed to affect any special, incidental or consequen- tial damages awarded to third parties due from either of the parties. Section 12. CVC shall carry at least the following minimum amounts of insurance with the CITY covered on an Owner's Protec- tive Liability.Endorsement on the policy. It shall be maintained in full force and effect during the life of this Agreement and shall protect the CITY and its employees, its agents or its representatives for damages to property arising in any form from the negligence or wrongful acts or omissions of CVC's agents, employees or representatives in the performance of any work covered by this Agreement: (a) Public liability insurance for injuries, including those resulting in death in any amount not less than Five Hundred Thousand Dollars ($500,000.00) for any one person, -and in an amount not less than One Million ($1,000,000.00) for any one accident or occurrence. (b) Property damage insurance in an amount not less than One Hundred Thousand Dollars ($100,000.00) for damages in any one accident or occurrence. Section 13. 'Audit and Inspection. CVC shall permit authorized representatives or the City to inspect such portions of CVC's books and financial records as may be directly relevant to a determination as to whether CVC has properly performed its obligations in compliance herewith; provided that such inspection is undertaken after reasonable notice during normal business hours and in a manner which does not unreasonably interfere with CVC's normal conduct of business. City Venture's books and financial records are processed and maintained at the City Venture office in Minneapolis, Minnesota. These records will be made available for inspection by authorized representatives of the City in Minneapolis and the City will bear the costs incurred in performing such inspection. Section 14. Unavoidable Delays. In the event that circum- stances beyond the reasonable control of either party prevent completion of its obligation hereunder, it shall not be penalized for such unavoidable delay and a reasonable timetable for completion of said obligations shall be reestablished by mutual agreement of the parties at no additional cost to the other party. Section 15. Disclosure of Information. All material developed, acquired, assembled or prepared by CVC under this agreement shall not be made available to any person, firm or other entity by CYC without prior written consent from the City. All requests for information or copies of such materials, data or reports shall be forwarded to the City's liason with CVC for - 4 - response to the requesting third party. Following completion of this project, CVC may be allowed to use said materials, data and reports for other purposes with written consent of the City. Section 16. Equal Employment Opportunity. In connection with the carrying out of any undertaking as set forth in the Agreement, CVC shall not discriminate against any employee or applicant for employment because of race, color, religion, handicap, sex or national origin. CVC will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to race, color, religion, handicap, sex or national origin. Section 17. Notices. All notices, approvals and other communications required by the terms of this Agreement shall be deemed sufficiently given if in writing and addressed as follows: (a) If to the City: J. Robert Massengale, Assistant City Manager .-Box 2000 City Hall, City of Lubbock Lubbock, Texas 79457 or such other person who may from time to time be designated by the City in writing: (b) If to CVC: H. A. Theiste, President City Venture Corporation 400 Marquette Avenue, Suite 300 Minneapolis, MN 55401 or such other person who may from time to time be designated by CVC in writing; and either delivered in person to the other relevant party at the last known proper address or sent by registered mail or telex, in which event the notice shall be deemed to have been served three (3) business days thereafter. Section 18. Entire Agreement. The parties agree that the entire understanding between them is contained in this document and Exhibit A, as mentioned previously, and that any conversa- tions, representations or other understandings which are not reflected by the language contained therein shall not vary, alter or change the terms and conditions_ of this Agreement. - 5 - IN WITNESS WHEREOF, the parties hereto have affixed their signatures at Lubbock, Texas, the day and year first above written. CITY VENTURE CORPORATION: P' OFFICER ATTEST: AA - 6 - CITY OF/L.UJ3BOCK: ATTEST: _J0 Rane to Boyd, City Sec etary APPROVED AS TO CONTENT: Rikey Ch lders, Assistant to the City Manger APPROVED AS TO FORM: 1 Do ald G. Vandiver, Assistant City Attorney PROPOSAL TO CITY OF LUBBOCK, TEXAS FROM CITY VENTURE CORPORATION November, 1984 EXHIBIT A INTRODUCTION City Venture Corporation is pleased to submit this proposal to the City of Lubbock to: Evaluate existing economic development programs in the City. Develop a strategy to encourage the establishment of new businesses and expansion of existing businesses. Develop a strategy to attract businesses to the City from outside of the West Texas area. Lubbock is a young city anxious to maintain its quality of life while it broadens its economic base and seeks new directions for growth. Incorporated only 75 years ago as a small town developed around agriculture and oil, Lubbock has diversified into manufac- turing, wholesaling and retailing, and government services. Lubbock is now the commercial, transportation, cultural and service center for 23 Texas and 3 New Mexico counties. It is the home of Texas Tech, the only undergraduate and graduate institu- tion in Texas to have fully accredited schools of law, medicine, nursing and allied health on the parent campus. Tech's agricul- tural, textile and engineering research programs offer signifi- cant potential for economic spin-off to the Lubbock economy. The Economic Development Committee of Lubbock: 2005, a group of civic and business leaders, has been advocating the development of a long-term strategic plan to capitalize on such assets as Texas Tech. The Mayor and City Council join with Lubbock: 2005 in wanting to position Lubbock for sustained growth through the rest of the century. City Venture will be available to assist the Lubbock: 2005 Economic Development Committee as a resource for setting goals for the next 20 years. Following submission of the Lubbock: 2005 report, City Venture will assist in implemen- tation of the goals of the Committee. Based on the foregoing considerations, City Venture has submitted this proposal. City Venture Corporation is a for-profit company created in 1978 by a consortium of notable American corporations to address the revitalization and growth needs of our cities. Corporations like Control Data, Reynolds Metals, First Bank System, and Dayton Hudson felt that their combined know-how could be applied to the problems of job creation, economic development and work force preparation. In addition to aggressive programs to attract new business from outside the community, City Venture is organized to help cities prepare and implement economic development strategies that largely hinge on new business start-ups and the growth of existing businesses. The rationale for this approach is docu- mented by research findings indicating that: Approximately 90% of the jobs created in the typical local economy come from existing firms and new enter- prises. Unlike large corporations, smaller businesses and new entrepreneurs generally tend to remain where they live. Small businesses (i.e., firms with 20 or fewer emplo- yees) generated almost two-thirds of the new jobs in the American economy during the 19701s. New jobs tend to come from newer companies. In the past decade, the Fortune 500 companies (in the aggre- gate) have not added a single job to the U.S. economy. Manufacturing's share of total employment in the U.S. fell from 23% in 1967 to 19% in 1980. Currently, 75% of the American work force is employed in the service sector. Growth in the service sector is expected to come from information processing, telecommunications, food and food services, and the convention/hotel/enter- tainment trades. Lubbock's economy reflects these national trends in several important respects. Manufacturing has steadily decreased as a percentage of total employment. Employment in services, finance, insurance and real estate and government has steadily increased. This shift has a bearing on how the City gears its economic development programs and allocates resources to capitalize on its assets. City Venture is proposing to work with the City, the business community and leading institutions to develop a program that will emphasize (1) how Lubbock can capitalize on its economic develop- ment strengths, and (2) what types of measures it can take to support new growth. SCOPE OF SERVICES The proposed Scope of Services is divided into the three general areas of interest identified by the City. I. EVALUATE CURRENT ECONOMIC DEVELOPMENT PROGRAMS IN THE CIT PURPOSE: Understanding strengths, weaknesses and trends in the local economy and the types of programs available to assist business attraction, retention and growth. Task 1.0 Evaluate basic trends in the Lubbock economy to determine areas of growth by sector and firm size. - 2 - Task 2.0 Survey a sample of local businesses in key economic sectors to understand more about locational decisions, business plans, markets served, preception of the local business climate and business needs. Task 3.0 Inventory and identify gaps in existing federal, state and local programs that provide management and technical assistance to businesses in any of the following areas: - procurement and contracting assistance - market analysis and planning - financial analysis and planning - loan packaging - accounting and tax counseling - import/export assessment - technology assesment - business plan preparation or review - site location - manpower training - entrepreneur identification - other Task 4.0 Inventory and identify gaps in existing debt and equity financing programs available in Lubbock (e.g., SBIC, SBA 5039 venture capital, revolving loan funds, etc.). Task 5.0 Review the manpower training services available for recruitment, hiring, customized training and OJT. Task 6.0 Evaluate the current program, policies and resources used to attract businesses in the Lubbock area. Task 7.0 Assess how the faculty, research capabi- lities, facilities and resources of Texas Tech could be integrated into an overall economic development program. PRODUCT An assessment of the Lubbock economy, business climate and resource availability to support the growth, attraction, retention and start-up of businesses. II. DEVELOP A STRATEGY TO ENCOURAGE THE ESTABLISHMENT OF PURPOSE,: To develop a system of services and incen- tives that will foster the growth of new and existing businesses. - 3 - Task 1.0 Based on the findings above, develop a business retention strategy to integrate the resources and services needed by companies to expand. These resources and services would include, but not be limited to: manpower training and development - affordable development sites, buildings and infrastructure - financing for working capital, plant and equipment - supportive public services - access to specialized services like export assistance, technology transfer, etc. Task 2.0 Develop a strategy to assist entrepreneur development and support that would include management assistance, start-up financing and building space for the most promising companies. Task 3.0 Recommend organizational arrangements and a budget to carry out the retention and entrepreneurial development programs. PRODUCT: A set of policies and recommendations that tie together the incentives and services needed to sustain the growth of new and existing local businesses. III. RECOMMEND STRATEGIES TO ATTRACT BUSINESSES TO THE CITY FROM OUTSIDE OF THE WEST TEXAS AREA PURPOSE: To enhance Lubbock's business attraction program by improving how its present programs operate. Task 1.0 Based on the analysis of the business attraction program in section 1, make recommendations in the following areas: - the overall marketing plan being followed - the promotional materials being used - the prospecting process - the size and allocation of the budget - staffing and organization - 4 - Task 2.0 Based on the section 1 analysis and survey, identify the most promising industry targets to pursue. Task 3.0 Organize the recommendations made in this study to an overall strategy. PRODUCT: A strategy to stimulate business growth from inside and outside of the City of Lubbock. IV. MANAGEMENT The proposed scope of work will be undertaken by senior City Venture staff people under the direction of Jeffrey B. Samet, General Manager, Marketing. City Venture has worked in over 20 cities around the United States developing and helping carry out business growth strategies. The Company will draw on stockholders and outside resources as appropriate to complete its assignment in Lubbock. In Lubbock, it is important for City Venture to have access to City and business leaders. The City Council will review and approve all submissions, provide policy and study issues, and through the Mayor, help schedule interviews and meetings. The Scope of Services should be looked upon as the initial step to establishing a full economic development program for the City. Subsequent steps could involve such activities as the structuring of business finance programs, the development of a business incubator, and the creation a specialized management assistance program. City Venture will make recommendations on implementation to the City Council and will assist the City of Lubbock with implementation if such assistance is requested by the City of Lub- bock. V. TIME TABLE The scope of work will be completed within seven months of contract signing. Work completion is expected as follows: Phase 1 Evaluation of current economic development programs in the City - completion at the end of 3 1/2 months. Phase 2 Develop a strategy to encourage the esta- blishment of new businesses and expansion of existing businesses - completion at the end of 5 months. - 5 - Phase 3 Recommend strategies to attract businesses to the City from outside of the -West Texas area - total completion at the end of 7 months. VI. FEES AND PAYMENTS The fee to complete this scope of work is $759000. Payment is requested as follows: 10% at contract signing 40% at completion of Phase 1 40% at completion of Phase 2 10% at completion of remaining work - 6 -