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HomeMy WebLinkAbout7369RESOLUTION NO. 7369 A RESOLUTION AUTHORIZING THE SUBMITTAL OF A SECOND APPLICATION TO THE ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) FOR PLANNING ASSISTANCE UNDER THE AUTHORITY OF SECTION 302(a) OF THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965, AS AMENDED, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the City of Pueblo has requested assistance from the Economic Development Administration (EDA) to support the City's ongoing economic development planning process for Downtown; and WHEREAS, the Denver Regional Office has invited the City to submit an application to the EDA for $75,000 in planning assistance under the authority of Section 302(a) of the Public Works and Economic Development Act of 1965, as amended; and BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1. An application to the EDA for planning assistance under the authority of Section 302(a) of the Public Works and Economic Development Act of 1965, as amended, by the City in substantially the same form and content as that on file in the office of the City Clerk is hereby approved. The President of City Council is hereby authorized to execute the application on behalf of the City. SECTION 2. The Applicant match, including local share and in —kind contributions, is firmly committed and will be paid from the budget of the Department of Planning and Development, Account No. 001 - 0100 - 111 - 000 - 010 -0101. INTRODUCED: MAY 9. 1994 BY: CHARLES JONES ATTEST: CITY CL K APPROVED BY: PRESIDENT OF THE COUNCIL ECONOMIC DEVELOPMENT ADMINISTRATION 302(a) PLANNING GRANT PROGRAM CITY OF PUEBLO, COLORADO GRANT PROPOSAL PURPOSE The City of Pueblo is requesting continuing financial assistance from the U. S. Department of Commerce, Economic Development Administration, through the 302(a) Planning Program. The purpose of the continuing assistance is to support the City's ongoing economic development planning process and specifically to continue the Strategic Economic and Physical Development Planning effort for Pueblo, funded in 1992 through the EDA's 302(a) Planning Program. The additional funding will continue this work by preparing economic development guidelines for developing private and public sector capacity within specific areas in Downtown Pueblo to implement the plan. HISTORY The City's overall Economic Development Program is based on the 11 1985 Final Report of the Economic Dislocation Adjustment Strategy," prepared for the City of Pueblo, Colorado, and the U. S. Department of Commerce, Economic Development Administra— tion. This rep -ort was initiated in May, 1984, following a series of plant closures and severe economic dislocation. Four critical areas addressed within the adjustment strategy included: 1. Downtown Development; 2. Expansion and Retention of Existing Firms; 3. Training Options; and 4. Airport Industrial Park Infrastructure Needs. Through the strategies developed within the 1984 plan, the community successfully addressed No. 2, Expansion and Retention of Existing Firms; No. 3, Training Options; and No. 4, Airport Industrial Park Infrastructure Needs. The City is now broadening its focus from the creation of primary jobs at the Airport Industrial Park to retail and service sector jobs in the Downtown. The City would like to attain the same success in Downtown that it has achieved at the Airport Industrial Park. EDA 302(a) GRANT PROPOSAL PAGE TI,O Although Pueblo has shown significant economic development in some areas, other areas remain stagnant. The City of Pueblo's "1992 Data Book" exhibits modest economic gains in sales tax revenjue in some areas; however, not in the downtown area. Pueblo is in its fourteenth year of severe economic distress. In - comparison to other similar metropolitan areas in the State of Colorado, none come close to experiencing the economic hardships in terms of unemployment (7 %), low wages (median household income -- $24,997), and number of persons receiving public assistance income (12.5% of the population) that are present in Pueblo. In an effort to lower the community's unemployment rate and increase income levels, the City is creating additional economic opportunities through a diversification of its economic base. Much of what has been done in Pueblo to alleviate or eliminate economic problems has been part of a long term, multifaceted, continuous planning effort with a large base of support from both public officials and the private sector. Because the process is encompassing, it involves an overall approach to economic development, rather than a "one project will solve all" approach. Despite signs of physical redevelopment in downtown, economic benefits cannot yet be seen in our city's statistics. We are laying a foundation for long —term economic development rather than aiming for a short —term upswing in the graph. As Pueblo begins to diversify and reposition, we need to build up the public and private capacity for economic activity. Last year the City of Pueblo received assistance from the EDA 302(a) planning program to prepare the "Strategic Economic and Physical Development Plan for Downtown Pueblo, Colorado." The plan, to be completed in December, 1993, has targeted tourism development in the Downtown as a means of expanding its economic base. There are several reasons for emphasizing tourism in Downtown: 1. A high profile of Downtown and its easy access from I -25, a major tourist /visitor corridor. 2. Low cost of infrastructure development. 3. Existing historical and cultural attractions. 4. The underutilization of existing facilities. EDA 302(a) GRANT PROPOSAL PAGE THREE The plan has concentrated on three elements: 1. Identification of Market and Economic Opportunities. 2. Resulting Physical Development Opportunities. 3. Implementation Strategies. FINDINGS In Phase I of Pueblo's economic development 302(a) plan, we performed an economic analysis for the over downtown area. Based on this analysis, a draft framework of Pueblo's economic and physical development strategies was drafted. Through a series of large and small meetings with local businesses and special interest groups, the framework will be finalized and strategies for implementation defined. As this plan came together, we found that opportunities in Downtown Pueblo were more numerous than expected. Early numbers show that tourism development will create approximately 1,940 full —time new jobs. There is an interest shown, but public and private sector capacity needs to be developed to cultivate this interest in Pueblo by developers and investors. At a strategic implementation session held with developers and other interested parties, it became apparent that now is the time to address Pueblo's downtown economic development issues at a greater level of detail and to begin building the capacity to implement the strategies identified in this report. REQUEST FOR ASSISTANCE ---------------- - - - - -- Pueblo has a strong industrial heritage. As we reposition ourselves to diversify in tourism and service sectors, we find that even though we have detailed strategies, we don't have the public or private sector capacity to realize those strategies. Using the information provided in the first phase of this plan, we will develop Economic _Development for Downtown — ---- - - - -- Pu ---------------- - - - - -- in the second phase. These guidelines will be used to build public and private sector capacity to increase opportuni— ties for small businesses, to broaden our employment base, and increase salaries for existing jobs. We are defining "capacity" as those foundations on which successful economic development efforts and downtowns are built. Capacity must be evident in entrepreneurial resources, leadership resources, organizational EDA 302(a) GRANT PROPOSAL PAGE FOUR resources, financial resources, and physical resources. The guidelines will cover the southern area of downtown - -the same area that was targeted in Phase I - -and address its specific needs. For example, one area with opportunities for small business infill may require a specialized lending program and a cooperative advertising program. The funds will not be used to finance or to provide technical assistance associated with any individual project. The downtown redevelopment and economic study now under way will provide a general guide to merge the growing industry of tourism with Pueblo's many underutilized private and public funding mechanisms. Phase II of this study will take an innovative approach to implementing the general economic development guidelines. lase see this as more than an economic development study or report; we would like to take the information developed through Phases I and II, package this information as economic development guidelines, and compile them into a plan for interested developers, financiers, and public and private investors. The plan will be a compendium of opportunities, plans, potential job market, education, and public and private investments both completed and proposed. This will be another of our continuing efforts to be actively involved in finding new ways to implement economic development strategies in Pueblo. The Planning and Development Department has served and will continue to serve as the common thread between many large and small public and private development planning efforts. The department has coordinated many of the downtown economic development efforts and has served as a line of communication in providing information about those efforts to others. PROPOSAL The planning grant will be used to finance a four —part process resulting in the compilation and packaging of a set of economic development guidelines for downtown. The result will be the identification of public and private sector roles in developing the capacity for economic development. The four parts are: 1. Program Planning 2. Economic Development Guidelines Investment 3. Economic Development Guidelines Investment 4. Economic Development Guidelines Development in Pueblo for Private Sector for Public for Attracting EDA 302(a) GRANT PROPOSAL PART 1: PROGRAM PLANNING PAGE FIVE In Program Planning, the City will retain the program specialist hired in Phase I of this process. Retaining the program specialist will help further develop an in —house capability which is important in establishing an ongoing economic development program. During Part One, a time schedule and progress sheet will be developed. A format will be created for the Economic Development Guidelines. The overall economic development framework will provide the ground work for determining where different subareas may require different guidelines for economic development. PART 2: ECONOMIC DEVELOPMENT GUIDELINES FOR PRIVATE SECTOR - - - - -- -------------------------------------------------- INVESTMENT The second part of the process is the development of the Economic Development Guidelines for private sector capacity. These guidelines will define private sector capacity and will explain how job and development capacity can be increased by strengthening five economic bases: (1) entrepreneurial skills and business opportunities; (2) human resources in both labor and leadership; (3) organizational resources such as those found in a Business Improvement District; (4) financial assistance in the form of small business loans or a revolving loan program; and (5) physical resources including adequate infrastructure, building stock, and environment. For example, in Phase I, we found that most visitors to Pueblo are friends and family of residents. The guidelines will identify this market and begin to broaden Pueblo's tourism market to create a more balanced view. The intent of part two is to have information at hand that will eliminate repetitive research on behalf of developers and investors. By having relevant economic development guidelines at hand, we hope to bring private development into Pueblo in a more timely manner. Tasks for part two will involve the collection of development guidelines from other communities that have resulted in successful economic development. An inventory of existing private sector development capacity will be conducted in each of the five previously mentioned categories to determine what the needs are. The needs will then be used in a plan for economic development guidelines. kle anticipate using proformas by downtown sector; and outlining the costs and benefits of existing and proposed special districts, such as the Urban Renewal District, the tax increment financing district, and the EDA 302(a) GRANT PROPOSAL PAGE SIX historical district. The guidelines will outline existing and proposed regulations that could have an effect on development such as outdoor dining, zoning, and access. Developers, business owners, bankers, and economic development specialists will be interviewed to test the opportunities and recommendations made in this area. PART 3: ECONOMIC_ DEVELOPMENT GUIDELINES FOR THE PUBLIC_ SECTOR The guidelines in part three will recommend strategies for building public sector capacity for economic development. More jobs and more business opportunities is the goal of Pueblo's economic development guidelines. Guidelines used by the public sector may include recommending taxing options, business improvement districts, business loan programs, or changes in zoning to include development incentives. Included in the guidelines for the public sector will be a listing of the tourism infrastructure needs that were analyzed in Phase I. Tasks for Part 3 will include meetings with members of the Pueblo Urban Renewal Authority, meetings to establish a tax increment financing district, and meetings with small business loan experts. Tourism infrastructure needs will be broadened based on the findings of the Phase I study and will be listed in order of priority and will include specific action plans. Meetings with professionals will determine the path to follow for implementing guidelines under Amendment One. We may require professional advice for the implementation of economic development guidelines for the public sector and how they can be realized under Amendment One (tax limitation law). Each guideline should be strategic in its ability to be accepted by the public and realistically financed and implemented. PART 4: EC O N OMIC_ DEV G UIDELINES FOR ATTRACTING — — ------------------------ DEVELOPMENT TO PUEBLO Part four will use the economic development guidelines from parts two and three to develop an Overall Economic Development Guidelines Plan and a supplemental information package. The planning work done will be the basis for a program that packages and dispenses the economic guidelines for the purpose of attracting development to downtown Pueblo. The information dispersed will contain the economic nuts and bolts of downtown Pueblo. The information is intended to save the developer time and money on researching the area, while bringing more timely investments into Pueblo. EDA 302(a) GRANT PROPOSAL PAGE SEVEN Tasks will include developing a plan to package the develop— ment guidelines and opportunities into an informational packet. To initiate final implementation, professional services may be used to provide contacts and set up meetings with prospective developers to provide input into the process. Our goal is to achieve a critical mass of activity in this part of downtown Pueblo that can continue on its own momentum.