HomeMy WebLinkAbout20. 14-544
DECEMBER 9, 2014 14-544 RESOLUTION
(CARRIED__7-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AGREEMENT WITH GO-EDC FOR ECONOMIC
DEVELOPMENT SERVICES
INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the
attached Agreement with Greater Oshkosh Economic Development Corporation (GO-
EDC) to provide economic development technical assistance to further the overall goals
of economic development in the greater Oshkosh area by facilitating job growth and
investment through interagency cooperation and services is hereby approved and the
proper City officials are hereby authorized to execute and deliver said Agreement in
substantially the same form as attached hereto, any changes in the execution copy
being deemed approved by their respective signatures, and said City officials are
authorized and directed to take those steps necessary to implement the terms and
conditions of the Agreement.
�
City of Oshkosh `
Community Development Department O HKO H
215 Church Avenue, Oshkosh,WI 54901 ON THE WATER
TO: Honorable Mayor and Members of the Common Council
FROM: Ailen Davis, Community Development Director
DATE: December 3, 2014
SUBJECT: Contract with the Greater Oshkosh Economic Development Corporation
(GO-EDC)
Background
The City's 2012 Strategic Plan identified the Economic Development goals of
determining the optimal economic development structure and centralizes economic
development. In 2012, the City's consultant, Prager &Associates, recommended a
public-private partnership that would serve the economic development needs for the
organizational structure and create a one-stop shop for economic development.
In 2013, David Ward led a planning effort that authored a basic framework for a
community-wide economic development mission including goals, objectives, and
performance measures. As a result of the planning effort, a wide range of private and
public organizations have developed and created the Greater Oshkosh Economic
Development Corporation (GO-EDC), a public -private partnership. GO-EDC has been
created to serve as the optimal structure, as a one-stop shop, and has incorporated the
community-wide economic development goals and objectives into their By-Laws and
Strategic Plan.
Analysis
The Prager Study recommended that a new public-private partnership be created to
serve the economic development goals for the community. The requirements for the
organization included:
• Balanced Board of Directors
• Widespread commitment from other organizations outside the control of any one
current organization.
• Centralized and unencumbered funding
• PerFormance measures
• Accountability
• Systematic communication and transparency.
• A robust Business Retention and Expansion program
• A bold business attraction strategy
GO-EDC has adopted By-laws, a Strategic Plan, a Staffing Plan, an Action Plan, and a
budget. GO-EDC has also created multiple committees to coordinate fundraising,
marketing, board development, and hiring. I believe GO-EDC has received the
commitment and resources from private, not-for-profit, and public organizations in order
to accomplish the structural goals the City had set out for economic development.
Fiscal Impact
The proposed City investment totals $166,000 and is a combination of City funds and
Winnebago County Industrial Development Board (IDB) funds. The City funds
budgeted in the 2015 Operation budget totals $166,000 for contractual services and
contract employment. Ms Brenda Hicks-Sorensen's contract with the City as Interim
Economic Development Manager will end on December 31, 2014.
The proposed GO-EDC contract will pass through the County's $1.00/capita funding of
$66,400 to GO-EDC. The additional $99,600 in funding of$1.50/capita will come from
City funds. The City's 2015 budget includes this funding.
The Term for the Contract would be for three years with 2 one-year option years. The
City's investment will be reflected in future budget years.
Recommendation
The City Council approves the GO-EDC contract.
Approved,
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Mark Rohloff, City Manager
Gr+�at�r C}��,k�sh
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Gorp�aratic�n
December 5,2014
Dr. Burk Tower, Mayor; Members of the City Council; and Mr. Mark Rohloff,City Manager
City of Oshkosh
215 Church Avenue
P.O. Box 1130
Oshkosh,WI 54903-1130
Dear Mayor Tower, Members of the City Council,and Mr. Rohloff:
Greater Oshkosh Economic Development Corporation (GO-EDC)was created in 2014 to promote comprehensive and
integrated economic development for the Oshkosh area. With strong and renewed energy,this focused leadership and
advocacy supports efforts to expand and diversify the regional economic base.
Of utmost importance to GO-EDC is to bring a "one-stop-shopping"mentality to economic development as well as to
leverage the power of public-private partnerships. Following these unique attributes,the GO-EDC Board of Directors,
comprised of private business and public entities,expects economic development in the Oshkosh area to be
straightforward and seamless.
GO-EDC approved a strategic plan in August 2014,compiling recommendations from various studies,reports,and
collaborative committee efforts. The plan outlines five strategies for success as well as key metrics. Specifically, by the
end of 2017 GO-EDC will—
• Complete,either directly or with partners, 150 company visits and calls annually.
• Assist existing businesses to increase capital investment by$75 million.
• Assist businesses in creating 1,000 new jobs, matching the greater Oshkosh area's labor force and training
capacity. Targeted wage rates will exceed the median hourly wage. (The median hourly wage was$16.45
according to the May 2013 Metropolitan and Nonmetropolitan Area Occupational Employment and Wage
Estimates.)
• Create a balanced industry mix targeting identified industry clusters and companies in the greater Oshkosh area.
• GO-EDC will track key measurements to garner an overall sense of how the greater Oshkosh area is doing.
The entire strategic plan,as well as a comprehensive roster of our governing board,committees and economic
development partners, is available at the GO-EDC website—www.go-edc.com.
Only with strong partnerships and financial support from organizations such as yours can GO-EDC achieve the objectives
stated above as well as those outlined in the strategic plan. As such,we respectfully request an investment from the City
of Oshkosh as outlined in the attached agreement. GO-EDC in turn agrees to provide direct economic development
technical assistance and services to the City of Oshkosh in accordance with the adopted GO-EDC Strategic Plan and
outlined in the attached agreement.
Thank you for your passion for economic development and commitment to the Oshkosh area. The time is now for
Oshkosh to build upon past successes,and we're proud and determined to develop our own success through the GO-EDC
philosophy.
Regards,
William F.Wyman
Chairman,GO-EDC Board of Directors
AGREEMENT
This agreement is between the City of Oshkosh, hereinafter the "City" and the Greater Oshkosh Economic
Development Corporation, hereinafter the"GO-EDC". In accordance with this agreement,GO-EDC agrees to
provide economic development technical assistance to the City,to coordinate this assistance with designated
City staff and City Council, and to implement the activities set forth herein.
PURPOSE
The purpose of the agreement is to further the overall goals of economic development in the greater Oshkosh
area by facilitating job growth and investment through interagency cooperation and services provided by GO-
EDC.
AGREEMENT
GO-EDC agrees to provide direct economic development technical assistance to the City in accordance with the
adopted GO-EDC Strategic Plan. GO-EDC will act as the City's economic development advocate. GO-EDC,
along with City staff members, will expend its best efforts to promote economic development including the
recruitment, retention and expansion of business within the City and greater Oshkosh area.
The economic development services to be provided by the GO-EDC will consist of the following:
Existin�Business Development
1. Conduct an on-going business retention and expansion (BRE) program utilizing a BRE Software System
that will include a comprehensive interview with prominent industries within the City of Oshkosh and
greater Oshkosh area. GO-EDC will contact the City relative to any significant concerns. The efforts will be
done in coordination with the Account Management strategies in place within the City of Oshkosh.
2. Assist existing businesses upon direct contact or referral from the City Council and/or staff and report
findings and resolution to the respective party. When meeting with local companies, GO-EDC will provide
information on existing local, state and federal economic development assistance programs that provide
funding to local businesses.These programs include low-interest loans,tax credit programs and
workforce development assistance. GO-EDC staff will also provide referrals to other organizations that
can meet the needs of the business.
3. GO-EDC will promote international business opportunities as appropriate.
4. GO-EDC will pursue a targeted industry approach to strengthen competitiveness of core industries in the
greater Oshkosh area. Activities include:
• Identify and evaluate market opportunities and requirements in the local and regional supply
chains for identified industry clusters.
• Collaborate with industry experts, including educational partners,to form or enhance targeted
industry roundtables, councils or other initiatives.
• Identify opportunities to collaborate on targeted industry efforts with appropriate partners
including, but not limited to,the Wisconsin Economic Development Corporation (WEDC),the New
North, and Northeast Wisconsin Regional Economic Partnership (NEWREP), and build upon
previous targeted industry studies.
Business Attraction
5. GO-EDC will collect and utilize data to develop a comprehensive targeted business recruitment program,
with full implementation in 2016.
6. GO-EDC will provide assistance through the development of customized proposals to businesses
interested in establishing a location within the City of Oshkosh upon direct contact or referral from the
City Council or City staff,or other reliable sources. This activity will be reported upon, in aggregate, as
part of this agreement's semi-annual reports.
7. GO-EDC will build the capacity of the organization and partners to respond to business attraction efforts.
8. GO-EDC will maintain and increase relationship-based outreach strategies to site location consultants and
realtors.
Marketin�Activities
9. GO-EDC will develop targeted communications tools to reach stakeholders to garner on-going support for
economic development efforts in the greater Oshkosh area. Activities,and frequency of such,will include:
Annually:
• Presentations to Civic Clubs
• Economic Development Partners Board Meetings and/or Appropriate Events
• City Council/Town Board/County Board Briefings
• Guest Column
• Investor Meetings
Quarterly:
• Scheduled Radio Show
• Newsletter
• Updates regarding Metrics
As Appropriate:
• Social Media
• Press Releases
10. GO-EDC will develop and implement a marketing plan that utilizes media and public relations relationships
designed to increase the awareness of GO-EDC's comprehensive services and to reflect a positive image of
doing business in the greater Oshkosh area.
11. GO-EDC will ensure that its website is both a reflection of the collaborative and high quality organization,
as well as be a client-centered resource containing quality information.
12. GO-EDC will secure earned media placements at least once per quarter in local new media outlets to
showcase the greater Oshkosh area's businesses or citizens,framed in a positive light.
13. GO-EDC will pursue opportunities to inform and educate area service providers(i.e.accountants,
attorneys, lenders)about the client services provided by GO-EDC to encourage client referrals.
Workforce Development
14. GO-EDC will engage local, regional, and statewide partners to ensure a technically educated,diverse and
skilled workforce to support the businesses in the greater Oshkosh area.
• GO-EDC will meet with education partners to learn about programs, service, and partnership
opportunities and ensure collaboration at all levels of education within the greater Oshkosh area.
• GO-EDC will encourage and support business/education partnerships and apprenticeships.
• GO-EDC will identify and participate in committees and boards fthat strive to address area
workforce development needs.
• As part of discussions with area businesses, GO-EDC will ask for information about future skill sets
and other workforce needs.
• GO-EDC will engage local and national union leadership to understand and address workforce
needs.
• GO-EDC will collaborate with state and other organizations to track workforce trends, including
diversity.
• GO-EDC will identify opportunities to support diverse,youth, disabled, and veteran initiatives.
Business Finance
15. Through business retention and recruitment activities, GO-EDC will provide existing and potential
businesses with information and assistance relative to available state,federal and local business
development financing programs. This activity includes providing business loans to businesses, as
appropriate, utilizing appropriate GO-EDC staff to develop loan applications.
16. GO-EDC will administer the City-funded Revolving Loan Fund (RLF) in accordance with the approved
program manual. GO-EDC will also seek creative ways to expand financing programs for all-sized
businesses, including additional RLF's and risk capital.
Capacitv Building
17. GO-EDC staff will meet with City of Oshkosh staff to understand economic development needs to ensure
appropriate community or location-specific tools are implemented, as well as to provide support for
economic development endeavors.
18. GO-EDC will support"place-based" economic development initiatives such as riverfront development and
redevelopment efforts.
19. GO-EDC staff will partner with the Wisconsin Economic Development Association to offer the"Economic
Development 101 for Local Officials" program to the City.
20. GO-EDC will provide written semi-annual reports to the City Manager and Director of Community
Development. This activity will include a summary of the activities conducted during the reporting
period.
Additional Support Activities
21. GO-EDC will complete a benchmark analysis of similar communities.
22. GO-EDC will establish a scorecard relevant to identified metrics. This will be focused on quantifiable and
measureable outcomes as well as provide results-oriented data to investors, such as the City of Oshkosh.
23. GO-EDC will implement systems and tools in order to conduct an economic impact analysis for all
investment-related decisions.
24. GO-EDC will track key measurements to garner an overall sense of how the greater Oshkosh area is doing.
Such measurements may include, but are not limited to:
� Commercial and industrial vacancy rates
• Number and square footage of buildings and sites available
• Number and square footage of buildings and sites sold as well as comparisons to other
communities within Wisconsin
� Change in number of businesses and diversity by type or industry
• Change in per capita household income
• Change of families below poverty level or on public assistance
• Total unemployment and unemployment rate
• Equalized property values and change in tax base
• New construction values
• Change in average housing value
• Gross County Product
• Industry employment by sector
• Retention of post-secondary graduates in the area
25. GO-EDC will maintain an inventory of available sites and buildings in the City of Oshkosh and greater
Oshkosh area and make that information available via the GO-EDC website. Additionally,GO-EDC will
implement a system for providing this information to interested parties. GO-EDC will work with the City
to develop marketing materials for targeted sites and targeted opportunities.
TERM
This Agreement shall commence on January 1, 2015 and shall terminate on December 31, 2017. The
Agreement shall then automatically renew for two additional one year periods unless terminated by
one of the parties by giving written notice to the other party no later than June 30th of the preceding
year for the following one year extension.
TERMINATION
This agreement may be terminated by either party upon thirty(30) days written notice in the event of default
by the other party of any material provision hereof which remains unremedied for thirty(30) days following
written notice of such default.
COMPENSATION
The City shall pay to GO-EDC$1.50 per capita based upon the last year's population estimate for each
year that this Agreement is in effect, as determined by the State of Wisconsin Department of
Administration Demographic Services Centerl. For 2015,the estimated cost shall be $99,618.00 based
upon the January 1, 2014 population estimate of 66,412.
In addition to the per capita payment directly from the City,the City will contribute the City's share up
to$1.00 per capita of the Per Capita Economic Development Allocation from Winnebago County to
GO-EDC for each year that this Agreement is in effect to support economic development and projects
as outlined in this Agreement.
FUTURE ASSIGNMENT OF RESPONSIBILITY FOR MANAGEMENT AND ADMINISTRATION OF
INDUSTRIAL, BUSINESS PARK AND REDEVELOPMENT SITES
At the City's discretion the City may assign marketing,sales, restrictive covenant enforcement, site
plan review for restrictive covenant compliance and other management and administrative tasks
related to the City's industrial parks, business parks and redevelopment sites to GO-EDC. If an
assignment is made,the City and Go-EDC shall mutually determine a starting date for such assignment,
goals and expectations, as well as additional compensation for such functions, if necessary.
INDEPENDENT CONTRACTOR
GO-EDC shall be an independent contractor of the City. Neither GO-EDC nor any of its officers, employees,or
agents shall be considered to be an employee of the City as a result of the obligations undertaken pursuant to
this agreement. GO-EDC's officers, employees and agents shall make no commitments or representation on
behalf of the City to third parties without prior approval of the City. In addition,GO-EDC hereby holds
harmless the City and its departments, officers, employees and agents from and against all claims,demands
and liability for damages to third persons of any type whatever arising out of the actions of GO-EDC under this
agreement.
CONFIDENTIALITY
GO-EDC Board members and staff will receive information on a regular basis which has been designated by
GO-EDC or a third party as confidential. GO-EDC has determined it is vitally important to maintain
confidentiality of information. GO-EDC requires all of its Board members and staff to agree to protect the
confidential information that they have access to or use during their time with GO-EDC.This requirement is
important to the credibility of the organization and to instilling confidence in GO-EDC for client companies and
investors. GO-EDC is committed to open dialogue with City staff and City Council. However,there may be
those occasions where confidentiality requirements restrict the sharing of such confidential information.
1 Source: http://www.doa.state.wi.us/Divisions/Inter�overnmental-Relations/Demo�raphic-Services-Center/Wisconsin-Poqulation-
Housin�-Estimates/
LIABILITY INSURANCE
GO-EDC agrees to abide by the attached City of Oshkosh Insurance Requirements for Professional Services.
NOTICES
All communications or notices required or permitted by this Agreement shall be in writing and shall be deemed
to have been given: (i) upon delivery to an officer or the person entitled to such notice, if hand delivered,or(ii)
two business days following deposit in the United States Mail, postage prepaid, or with a nationally recognized
overnight commercial carrier that will certify as to the date and time of delivery,air bill prepaid, or(iii) upon
transmission if by facsimile, any such communication or notice shall be addressed as follows, unless and until
any such party notifies the other in accordance with this section of any change of address:
If to the Citv: City of Oshkosh
City Attorney's Office
215 Church Avenue
Post Office Box 1130
Oshkosh,WI, 54903-1130
Attn: City Attorney
Facsimile No. 920-236-5106
With a copv to: City of Oshkosh
Community Development Director
215 Church Avenue
Post Office Box 1130
Oshkosh,WI, 54903-1130
If to GO-EDC: Greater Oshkosh Economic Development Corporation
320 E. Parkway Avenue
Oshkosh,WI 54901
Attn: Chairman of the Board
ASSIGNMENT
GO-EDC agrees that it will not assign this agreement or any portion thereof,or any of its responsibilities
hereunder,to any other party without first obtaining the written permission of the City.
[signature page to follow)
IN WITNESS WHEREOF,the parties hereto have executed this agreement on the day of
, 2014.
GREATER OSHKOSH ECONOMIC DEVELOPMENT CORPORATION
William F.Wyman
CHAIRMAN OF THE BOARD
CITY OF OSHKOSH
Mark A. Rohloff
CITY MANAGER
PAMELA R. UBRIG
CITY CLERK
APPROVED AS TO FUNDING AVAILABILITY:
TRENA LARSON, FINANCE DIRECTOR
APPROVED AS TO FORM:
LYNN LORENSON, CITY ATTORNEY