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.