HomeMy WebLinkAbout38. 13-575
DECEMBER 10, 2013 13-575 RESOLUTION
(CARRIED___7-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: ACCEPT WINNEBAGO COUNTY PER CAPITA FUNDING FOR
ECONOMIC DEVELOPMENT; AUTHORIZE PAYMENT OF FUNDS
TO CHAMCO TO SUPPORT ECONOMIC DEVELOPMENT
EFFORTS ON BEHALF OF THE CITY & APPROVE AGREEMENT
WITH CHAMCO FOR 2014 ECONOMIC DEVELOPMENT SERVICES
INITIATED BY: CITY ADMINISTRATION
WHEREAS, Winnebago County has established the Winnebago County Per Capita
Funding Program to provide annual allocations to local units of government for economic
development programs and projects; and
WHEREAS, funds under this program may be used for economic development
promotion/marketing efforts and/or financing local economic development projects;
and
WHEREAS, the City of Oshkosh has previously designated its funds under this
program to CHAMCO; and
WHEREAS, the City has previously allocated $37,500 annually to CHAMCO for
ongoing economic development support on behalf of the City of Oshkosh; and
WHEREAS, the City is currently working with the Greater Oshkosh Economic
Development Commission (GOEDC) in economic development to review, improve and
expand economic development services in the City; and
WHEREAS, it is appropriate at this time to designate funds to CHAMCO to continue
and increase their economic development efforts on behalf of the City and to accept the
portion of the county economic development allocation at this time for economic
development purposes; and
WHEREAS, CHAMCO has submitted a proposal for additional funding to support
special economic development projects and initiatives.
NOW, THEREFORE, BE IT RESOLVED by the Common Council for the City of
Oshkosh that the City of Oshkosh accepts the Winnebago County Per Capita Funds.
DECEMBER 10, 2013 13 -575 RESOLUTION
CONTD
BE IT FURTHER RESOLVED that the City of Oshkosh allocates $28,387.10 of the
County Per Capita Allocation to CHAMCO for 2014.
BE IT FURTHER RESOLVED that the Common Council also authorizes the
payment of $77,470 to CHAMCO for its ongoing support of economic development
activities on behalf of the City of Oshkosh for 2014.
BE IT FURTHER RESOLVED that the appropriate City staff are hereby authorized
and directed to enter into an appropriate agreement incorporating the terms of the attached
Request of CHAMCO for 2014 Economic Development Funding.
BE IT FURTHER RESOLVED that should a successor public- private agency be
created during calendar year 2014, CHAMCO shall refund to the City both the Per Capita
Allocation and the ongoing economic development support funds on a pro rata basis for
the remaining portion of calendar year 2014.
BE IT FURTHER RESOLVED that the appropriate city staff are hereby authorized
and directed to take any and all steps required to apply for, accept and receive the County
Per Capital Economic Development allocation and transfer $28,387.10 of the County Per
Capita Economic Development allocation as contemplated by this resolution, to make an
additional payment of $77,470 to CHAMCO for the ongoing support of economic
development activities on behalf of the City of Oshkosh and to enter into appropriate
agreements to ensure that the intent of this resolution is met.
OfHKOlH
ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Allen Davis
Community Development Director
DATE: December 5, 2013
RE: ACCEPT WINNEBAGO COUNTY PER CAPITA FUNDING FOR ECONOMIC
DEVELOPMENT; AUTHORIZE PAYMENT OF FUNDS TO CHAMCO TO
SUPPORT ECONOMIC DEVELOPMENT EFFORTS ON BEHALF OF THE
CITY & APPROVE AGREEMENT WITH CHAMCO FOR 2014 ECONOMIC
DEVELOPMENT SERVICES
BACKGROUND
Chamco has been providing services for development, marketing, sales and management of
Industrial Park land for many years. Those services must be renewed for 2014. Chamco's
compensation in 2013 was included a portion of the County's Per Capita allocation for
economic development of $28,400, an additional $37,500 from the City, and a commission on
land sales in the City's Industrial Parks.
In 2013, Chamco has also developed other economic development projects with the City and
other partners. Chamco is requesting additional compensation for these new, additional
economic development services they are offering the City.
ANALYSIS
The City has been working with Chamco on many economic development projects in 2013 —
the Aviation Business Park, additional marketing strategies for buildings and aviation park
Land, multiple grant applications for EDA and DoD, the City's newest financing strategies and
Revolving Loan Fund, and the UW- Oshkosh Business Accelerator. These efforts have just
started and there is a great amount of work to be done on all these projects in 2014.
In the meantime, City began working with our many economic development partners through
the newly created Greater Oshkosh Economic Development Commission ( GOEDC). While
the GOEDC organization continues to develop, the City's economic development needs
continue to grow. While Chamco has been in support of the findings of the Prager Study,
Chamco is prepared to provide select economic development services that are needed in the
meantime. Chamco's proposed scope of services for 2014 is attached. These services
include:
Continued marketing and sales of Industrial Park land.
Continued retention and expansion services in the Industrial Parks and industries
throughout the City.
• Continued administration and enforcement of Industrial Park restrictive covenants.
The City's contribution to Chamco for these services total $37,500. Other, new services
Chamco is proposing to provide in 2014 include:
• Aviation Business Park establishment including restrictive covenants, marketing, and
sales, Business Accelerator establishment.
• Increased Industrial Park marketing including the newly created virtual building
program.
• Assisting the City in establishing the Local Revolving Loan Fund program recently
funded by the City.
Chamco has also identified additional leveraged funds for these new services as follows:
City Funds requested Leveraged Funds
1.
Aviation Business
$10,000
Park Marketing
2.
Increased marketing
3.
RLF Establishment
4.
Aviation Business
Park /Accelerator estab.
TOTAL
$15,470
$210,000 DoD grant
$10,000
$20,000 Chamco
$7,500
$7,500 Chamco
$7,000
$7,000 Chamco
$39,970
$244,500
The funding is dependent on Winnebago County per capita funding. Without the County's
funding, the scope of services and fees must be modified. The funding from Winnebago
County should be available in early 2014. Should another economic development
organization assume some or all of these services, Chamco will reimburse the City the pro -
rata share of the fees included in this scope of services.
FISCAL IMPACT
The City has budgeted $150,000 for economic development contractual services in 2014.
Chamco's request of current and newly proposed economic development services total
$105,857.10 and leverages an additional $244,500. The City would retain $44,142.90 for
other economic development services that could include other marketing or other contract
services. The Economic Development Budget account for these services is #100. 0730-6466-
00000.
RECOMMENDATION
City Council approves Chamco's proposed scope of economic development services and
contribution for 2014.
Approved M p�
City Manager
7hr, Oshkosh indusltial Developmeni Corpornlion
Elizabeth A. Hartman
CEO & General Counsel
Direct: 920 - 232 -9427
ehartman@chameo.or
December 5, 2013
Mayor Burk Tower
Members of the Oshkosh Common Council
215 Church Avenue
Oshkosh, WI 54901
Dear Mayor Tower and Members of the Oshkosh Common Council:
This letter and attached outline sets forth the request of Chamco, Inc. for funding to
support its economic development efforts on behalf of the City of Oshkosh ( "City").
We request our "historical" funding, which the City has invested in Chamco since as
far back as we have records (1975). This amount includes $37,500 of general purpose
revenue support and $28,400 of the $66,300 allocation from the Winnebago County
per capita program. We also seek additional funding in the amount of $39,970 to
support special projects and initiatives. We are not seeking at this time funding fox
management and brokerage services we provide in connection with the area's five
industrial parks. These services are subject to contract, the renewal of which will be
considered at a future City Council meeting.
We request the same level of GPR funding we have received since 2001 ($37,500).
We also request a portion of the per capita funding. Historically we have received all
of the City's per capita allocation, but last year following the increase in the per capita
allocation by the County, the City chose to retain a portion of that funding, but
invested in Chamco an amount consistent with our past allocation prior to the County
increase ($28,400). We seek again this year the same per capita amount we received
last year and in prior years.
This historical funding is critical base funding of our operations and helps to fund
such activities as Chamco's continuing work with prospects and clients; participation
in business retention efforts; participation in collaborative efforts such as production
of the annual economic development report, Opportunity Oshkosh, GO EDC and
City zoning rewrite efforts; and work with the New North and WEDC on responses
to requests for proposals from site selectors.
43 East 7th Avenue Oshkosh, Wl 54901 • 920.232.9786
Page 2
Mayor Burk Tower and City Council Members
We also request additional City investment to support special initiatives that are underway or
planned for calendar year 2014, including services in connection with the
pending, but expected, Department of Defense grant for aviation business park planning; assistance
to the City with setting up the new revolving loan fund; enhancements to the Chamco website to
include interactive mapping features of the industrial parks and feature the virtual building program;
and work with the City outside the scope of the Department of Defense grant on setting up the new
aviation business park. The attached outline sets forth the amount of the request, what we will
deliver in exchange and other sources of supporting funds. The City's additional investment of
$39,970 in Chamco leverages $244,500 in private and grant funding.
This additional funding is important for a number of reasons. Chamco is the lead or supportive
organization on many important initiatives as described on the attached and others including the
business accelerator program and facility and Angels on the Water. Importantly, as the Prager Study
has advised, the goal for a public /private economic development partnership is to balance the
investment between the public and private sector. This will mean increased support from both
government as well as the business community, We are engaged in a private fundraising effort.
Chamco is a logical candidate for City investment because we are the only public /private
partnership independently providing economic development services and because of our historical
relationship with the City, including recent collaborative efforts on the purchase of the land for the
aviation business park, successful $2,000,000 Economic Development Administration grant to
support costs associated with the park, and pending Department of Defense grant to assist with
park and business accelerator planning efforts.
Chamco recognizes it is uncertain how the GO EDC initiative will impact the delivery of economic
development services and whether those efforts will require City funding. However, Chamco has,
and will continue to, provide critical economic development services, Accordingly, we believe the
City's historical and increased support of Chamco this year, coupled with the reserve the City is
retaining in the event funds are needed for GO EDC or another initiative, is a good approach to
ensure support for what we know is needed now and what may be needed in the future.
Chamco has worked with the City on many projects and initiatives, as well as development of the
industrial parks, for over 50 years. It has been a successful partnership. We will work closely with
City staff as we continue the important work outlined in this letter and the attached outline. We tivill
make periodic reports to the Chamco board on the progress on these efforts and would anticipate
similar reports to you by us or City staff. Chamco is committed to working with the City to
collectively build upon past successful efforts to create an even better future for Oshkosh!
Thank you for your consideration of this request.
Very truly yours,
Elizabeth A. Hartman
REQUEST OF CHAMCO, INC FOR 2014 ECONOMIC DEVELOPMENT FUNDING
Request:
• Historical support- $65,900 ($37,500 general purpose revenue + $28,400 of
Winnebago County per capita allocation)
• Additional funds to support special projects and initiatives -- $39,970
• Aviation business park planning (pending Department of Defense in-
kind staff match work) - $15,470
• Increased marketing including website enhancements and links -
$10,000
• Revolving loan fund set up - $7,500
• Aviation industrial park set up (outside of the scope of the DoD grant) -
$7,000
1. Aviation Business Park Planning (In kind match required by pending DoD
rant
a. What we are asking for from the City: $15,470
b. What We Will Do:
i. Work with the City to procure the consulting contract for
planning services funded through the subaward from the
ECWRPC to the City
ii. Prepare information to be provided to the ECWRPC in
compliance with grant performance reporting requirements
iii. Manage the performance of the consulting contract
iv. Coordinate, prepare and attend various meetings associated
with the planning efforts
v. Facilitate partnerships between regional airports and
communities
vi. Gather and prepare information required by consultant
c. Other support funding: Department of Defense grant (pending):
$210,000 to hire consultant with expertise in aviation park
development and marketing to help us find niche market which best
matches the strengths and needs of our region
90% DoD funds /10% City funds
1
2. Increased marketing including website enhancements and links
a. What we are asking for from the City: $10,000
b. What We Will Do
i. Work with city and consultant to develop marketing plan and
materials to market Build it Now (virtual building) project
ii. Work with city and consultant to update Chamco website to
include pages on industrial parks with interactive mapping
feature (with a focus on new aviation business park), better
linkage and search optimization
c. Other support funding: Chamco = $20,000 (which will support the
website work as well as Chamco's other marketing efforts)
66% Chamco funds /33% City
3. Assist with Setting Up City Revolving Loan Fund
a. What We Are Asking For from the City: $7,500.00
b. What We Will Do
i. Work with city staff to draft policies and procedures manual,
application materials, legal documentation to set up the fund and
legal document templates for loans
ii. Undertake initiative to seek private matching funds from local
lenders
iii. Set up underwriting committee
iv. Work with city to develop criteria for fund administrator and
draft contract for administration
c. Other support funding: Chamco = $7,500
50% Chamco funds /50% City funds
4. Setup New Aviation Industrial Park
a. What we Are Asking For from the City: $7,000
b. What We Will Do;
2
i. Form covenant development committee to assist City and
County with writing the covenants to govern the park to include
working closely with EAA
ii. Work with the City and county on terms of agreement to develop
and manage the park
iii. Work closely with Aerolnnovate to support efforts to cultivate
contacts and relationships in the aerospace community
iv. Work with the City and county on EDA grant implementation
and administration
v. Work with the City on site selection and review for UW Oshkosh
Business Accelerator facility
c. Other support funding: Chamco $7,000 [as well as $2,000,000 EDA
grant]
Chamco 50% /City 50%