Loading...
HomeMy WebLinkAbout29. 17-615 DECEMBER 12, 2017 17-615 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE AGREEMENT WITH GREATER OSHKOSH ECONOMIC DEVELOPMENT CORPORATION FOR ECONOMIC DEVELOPMENT SERVICES ($98,000) INITIATED BY: DEPARTMENT OF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. TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: December 5, 2017 RE: Approve Agreement with Greater Oshkosh Economic Development Corporation for Economic Development Services ($98,000) 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 these planning efforts, a wide range of private and public organizations have developed and created the Greater Oshkosh Economic Development Corporation (Greater Oshkosh EDC), a public-private partnership, in 2014. The Greater Oshkosh EDC creation in 2014 was designed to serve as the optimal economic development 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 Greater Oshkosh EDC results speak for themselves. Successful completion of major projects like the Menominee Nation Arena, the Oshkosh Corporation Global Headquarters project and many other job creating activities means that Greater Oshkosh EDC has achieved the goals for the organization originally envisioned in 2012 and 2013. City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us Greater Oshkosh EDC has adopted By-laws, an updated Strategic Plan, a Marketing Plan, and a budget. Greater Oshkosh EDC has also created multiple committees to coordinate fundraising, marketing, board development, and the Revolving Loan Fund that they administer on the City's behalf. Greater Oshkosh EDC has also received the commitment and resources from private, not-for-profit, and additional public organizations in order to accomplish the goals the City had set out for economic development. FISCAL IMPACT The proposed City investment totals $172,632 and is a combination of City funds and Winnebago County Industrial Development Board (IDB) funds. The City funds budgeted in the 2018 Operations Budget for Greater Oshkosh EDC is $98,000. The proposed Greater Oshkosh EDC agreement will direct the County's $1.12/capita funding of $74,632 to Greater Oshkosh EDC. The additional $98,000 in City funding of will come from City funds. The City's 2018 budget includes this funding. Greater Oshkosh EDC indicates that they will be asking for an increase in city -funding in 2019 and 2020 which will be included in future budget enhancement requests. The Term for the Agreement would be for three years. The City's investment in 2019 and 2020 would be reflected in future budget years. RECOMMENDATION The City Council approves the Agreement with Greater Oshkosh Economic Development Corporation for Economic Development Services for $98,000. Submitted, 41�k iav iJ Allen Davis Community Development Director Approved: Mark A. Rohloff City Manager City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us GRMATMR � ECSJNOMiC DEVELOPMENT GOR POR A7iON v� December 4, 2017 Mayor Steve Cummings City of Oshkosh 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 RE: Revolving Loan Fund — Quarterly Summary — Q3 2017 Dear Mayor Cummings: The Greater Oshkosh Economic Development Corporation appreciates the opportunity to administer the Greater Oshkosh Revolving Loan Fund (RLF). The Greater Oshkosh EDC Board of Directors and Revolving Loan Fund Committee believe that this program provides, and will continue to provide, necessary growth capital for area small businesses. Greater Oshkosh EDC promised to offer quarterly updates to the council on RLF activity and this letter serves as that update. Two loans have been administered by the Greater Oshkosh EDC RLF program to date. Thus far, one loan was repaid in full in April 2017 and all loan payments are current and loan reporting is being monitored for the outstanding loan. There are currently two RLF prospects with which we are working. These prospects are currently working with lenders to finalize the gap, if any, that they will need assistance closing. The Greater Oshkosh Capital Catalyst Fund is nearing the end of its first round and has been an incredibly strong asset to businesses getting started in greater Oshkosh. As a reminder, this fund was developed by reallocating $125,000 from the Revolving Loan Fund and a 1:1 match from the WEDC Capital Catalyst Program, totaling a $250,000 fund for startups in Oshkosh. The fund has a minimum loan of $1o,000; maximum loan of $1oo,000; and grant eligibility of $1o,000 per entity. During Q3, we reviewed an application and it was denied due to funding acquired from other entities and questions regarding their ability to repay the loan. In the beginning of Q4, we approved a $9o,000 loan to an advanced manufacturing start up. We currently have $35,000 left in the fund for this round and have one potential applicant with which we are working. Please find attached a report we have provided with further detailed information on both funds. The Greater Oshkosh EDC RLF Committee and Board remains excited and optimistic about future prospects for helping businesses grow in our own backyard. Please contact us anytime at (920) 230-3322 if you have questions or to provide more information. Sincerely, Jason E. White, CEO Greater Oshkosh Economic Development Corporation cc: Thomas Pech, Deputy Mayor Debra Allison -Ashby, Council Member Steve Herman, Council Member Caroline Panske, Council Member Ben Stepanek, Council Member Lori Palmeri, Council Member Mark Rohloff, City Manager Allen Davis, Community Development Director GR EATEN?' ew ECONOMIC OSHK DEVELOPMENT CORPORATION �y REPORT: Greater Oshkosh Revolving Loan Fund & Capital Catalyst Fund November 2017 FUNDS DISTRIBUTED: Greater Oshkosh Revolving Loan Fund: Company Amount Loaned Amount As of Outstanding Offbeat Press $75,000 $52,896 11/30/2017 G Benefits $30,000 Fully Repaid Aril 201 TOTAL $Yo5,000 Advanced Manufacturing Greater Oshkosh Capital Catalyst Fund: Company Award Type of Award Industry RG Manufacturing $90,000 Loan Advanced Manufacturing ActiveEDU $10,000 Grant IT Bee Bella $30,000 Grant Loan Manufacturing/Agriculture Roberts Defense $10,000 Grant Advanced Manufacturing Upright Kids $10,000 Grant Advanced Manufacturing ICARUS Devices $10,000 Grant Aviation Aeros ace Fifth Ward Brewery $55,000 Loan Manufacturing/Agriculture TOTAL $215,000 *WEDCrequires $42,000 be distributed as grant awards Fund Remaining: $35,000 POTENTIAL LEADS: Revolving Loan Fund: Greater Oshkosh EDC is working with two businesses, along with their lenders, that are considering an application to the Revolving Loan Fund (RLF) to fill a potential lending gap. One of these applicants is a small thriving business that is part of our strong quality of life in Oshkosh and is expanding because of their success. We also thank the Oshkosh Common Council for restoring $422,000 to the Revolving Loan Fund after the funding was established for infrastructure to the Lakeshore property. A v G R E A T E ROSH, ECONOMIC DEVELOPMENT CORFORAT1ON Capital Catalyst Fund: Greater Oshkosh EDC currently has one potential applicant for the Capital Catalyst Fund. If successful, this prospect could be awarded the remainder of the funds available. Greater Oshkosh EDC staff are currently waiting to receive the application. The company is deciding on the level of funds needed. The final $35,000 of the Capital Catalyst Fund will need to be committed (not distributed) by February 1, 2o18. If the Oshkosh Common Council knows of any potential recipients of the funding left, we encourage you to make an introduction and see if we can assist. If not in this round of funding, in the next round. Greater Oshkosh EDC is in the beginning stages of preparing a new application for a second award from the Wisconsin Economic Development Corporation (WEDC). Greater Oshkosh EDC continues to believe it is essential for the Capital Catalyst fund to be replenished and ready to assist local businesses as much as possible. Conversations with WEDC have been positive in the potential for another award, though nothing is guaranteed. This fund has been a tremendous asset for supporting businesses launching in our community, and for demonstrating the strength of entrepreneurial support in Oshkosh. Greater Oshkosh EDC has appreciated the partnership of organizations such as the UW Oshkosh Small Business Development Center, the Alta Resources Center for Entrepreneurship and Innovation, the UW Oshkosh Business Success Center, Rise & Grind — A Community Space, gener8tor, gBeta, and the City of Oshkosh. AWARENESS Greater Oshkosh staff and RLF Committee continue to promote the Revolving Loan Fund and Capital Catalyst Fund to our businesses, lenders, accountants, and other entities who assist businesses on a day-to-day basis. While word-of-mouth referrals from partners and testimonials from successful borrowers represents the best form of marketing, Greater Oshkosh EDC also has developed a marketing piece that simplifies and illustrates the process for the applicant. Over the past year, Greater Oshkosh has experienced a greater level of dialogue with primary lenders who are working with business clients and reaching out to us to see if we can partner in some way. These conversations have been incredibly encouraging to us and we look forward to continued growth and impact with these tools in our community's economic development toolbox. Thank you to the Oshkosh Common Council members and staff for supporting Greater Oshkosh EDC efforts in the administration of these funds and for providing resources. Please encourage potential borrowers with whom you interact to contact our staff for assistance. [Type here] F H - � H Cr; oavoany10N 2380 State Highway 44, Suite B, Oshkosh, WI 54904 (920) 230-3321 • www,GreaterOshkosh.com December 6, 2017 Mr. Steven Cummings, Mayor; Members of the Common Council; and Mr. Mark Rohloff, City Manager City of Oshkosh 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 Dear Mayor Cummings, Members of the Common Council, and Mr. Rohloff: As you know, Greater Oshkosh Economic Development Corporation (Greater Oshkosh EDC) was created in 2014 to promote comprehensive and integrated economic development for the Oshkosh area. Specifically, the mission of Greater Oshkosh is to help grow and retain existing businesses located within greater Oshkosh and expand workforce development initiatives throughout the region. Within three short years, organizational leadership has help support new efforts to expand and diversify our workforce and economic base. Of primary importance is for Greater Oshkosh EDC to continue providing "one -stop -services" to economic development initiatives as well as to leverage the power of public-private partnerships. In executing these attributes, the Greater Oshkosh EDC Board of Directors, comprised of local business leaders from both private and public entities, expects Greater Oshkosh to build on the success of the previous three years for even greater expansion during 2018-2020. As Greater Oshkosh develops a working model for another three years of regional engagement and business success, the organization anticipates executing four strategic initiatives, each comprised of numerous programmatic objectives, as measured by the following metrics and intended outcomes: • Continue development of Business Retention and Expansion efforts within greater Oshkosh area; • Advance and enhance community -wide Workforce Development initiatives among business, education and government entities; with a focus on public-private partnerships that connect the needs of the greater business community with solutions for area workforce demands; • Take an active role in cultivating a culture of Entrepreneurship and Innovation — including providing support to high-growth, high-value early-stage companies within the region; • Lead northeast Wisconsin in Targeted Industry Development; with a primary focus on manufacturing, IT, aviation, and downtown revitalization. Greater Oshkosh EDC Board of Directors recently approved a strategic plan in August 2017, compiling recommendations from various studies, reports, and collaborative community initiatives. The plan outlines numerous strategies for success as well as key metrics. Specifically, by the end of 2020 Greater Oshkosh EDC will: • Complete, either directly or with partners, 150 company visits and calls annually. • Assist existing businesses to increase capital investment by $70 million. • Help expand and retain businesses in securing 1000 new/renewed jobs, matching the greater Oshkosh area's labor force and training capacity. • Greater Oshkosh EDC will track key metrics to garner an overall sense of how the greater Oshkosh area is doing relative to other Wisconsin metros, especially along the 1-41 corridor. The entire strategic plan, as well as a comprehensive roster of our governing board, committees and economic development partners, is available at the Greater Oshkosh EDC website — www.greateroshkosh.com. Only with strong partnerships and financial support from organizations such as yours can Greater Oshkosh 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. Thank you for your passion and support for economic development and commitment to the Oshkosh area. May the success of the previous three years provide confidence that Oshkosh and the surrounding region is cooperatively on a path of growth, sustainability and unparalleled achievement to enhance our community and the residents who proudly call northeast Wisconsin home. Regards, Thomas W. Castle Chairman, Greater Oshkosh 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 "Greater Oshkosh EDC'. In accordance with this agreement, Greater Oshkosh EDC agrees to provide economic development technical assistance to the City, to coordinate this assistance with designated City staff and Common 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 enhancing growth and investment through interagency cooperation and services provided by Greater Oshkosh EDC. AGREEMENT Greater Oshkosh EDC agrees to provide direct economic development technical assistance to the City in accordance with the adopted Greater Oshkosh EDC Strategic Plan. Greater Oshkosh EDC will act as the City's economic development advocate. Greater Oshkosh EDC, along with City staff members, will make available 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 Greater Oshkosh EDC will consist of the following: Existing Business Development 1. Conduct an on-going business retention and expansion (BRE) that will include a comprehensive interview with prominent industries within the City of Oshkosh and greater Oshkosh area. Greater Oshkosh 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. Assist existing businesses upon direct contact or referral from the Common Council and/or staff and report findings and resolution to the respective party. Greater Oshkosh 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. Greater Oshkosh EDC staff will also provide referrals to other organizations that can meet the needs of the business. 3. Greater Oshkosh 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 4. Greater Oshkosh EDC will help 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 Common 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. 5. Greater Oshkosh EDC will maintain and increase relationship -based outreach strategies to site location consultants and realtors. Marketing Activities 6. Greater Oshkosh EDC will develop targeted communications tools to reach stakeholders to garner on- going support for economic development efforts in the greater Oshkosh area. Additionally, Greater Oshkosh EDC will develop and implement a marketing plan that utilizes media and public relations relationships designed to increase the awareness of Greater Oshkosh EDC's comprehensive services and to reflect a positive image of doing business in the greater Oshkosh area. 7. Greater Oshkosh EDC will pursue opportunities to inform and educate area service providers (i.e. accountants, attorneys, lenders) about the client services provided by Greater Oshkosh EDC to encourage client referrals. 8. Greater Oshkosh EDC will lead redevelopment and distressed area revitalization efforts located in the City of Oshkosh, including but not limited to, the Sawdust District, Lakeshore and the Central City Investment Strategy (Imagine Oshkosh). Workforce Development 9. Greater Oshkosh 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. Greater Oshkosh 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. • Greater Oshkosh EDC will encourage and support business/education partnerships and apprenticeships. • Greater Oshkosh EDC will identify and participate in committees and boards that strive to address area workforce development needs. • As part of discussions with area businesses, Greater Oshkosh EDC will ask for information about future skill sets and other workforce needs. • Greater Oshkosh EDC will engage local and national union leadership to understand and address workforce needs. • Greater Oshkosh EDC will collaborate with state and other organizations to track workforce trends, including diversity. • Greater Oshkosh EDC will identify opportunities to support diverse, youth, disabled, and veteran initiatives. Business Finance 10. Through business retention and recruitment activities, Greater Oshkosh 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 Greater Oshkosh EDC staff to develop loan applications. 11. Greater Oshkosh EDC will administer the City -funded Revolving Loan Fund (RLF) in accordance with the approved program manual. Greater Oshkosh EDC will also seek creative ways to expand financing programs for all -sized businesses, including additional RLF's and risk capital. Support Activities 12. Greater Oshkosh EDC will complete a benchmark analysis of similar communities. 13. Greater Oshkosh EDC will establish a scorecard relevant to identified metrics. This will be focused on quantifiable and measurable outcomes as well as provide results -oriented data to investors, such as the City of Oshkosh. 14. Greater Oshkosh EDC will implement systems and tools to conduct an economic impact analysis for all investment -related decisions. 15. Greater Oshkosh 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 Greater Oshkosh EDC website. Additionally, Greater Oshkosh EDC will implement a system for providing this information to interested parties. Greater Oshkosh EDC will work with the City to develop marketing materials for targeted sites and targeted opportunities. fim This Agreement shall commence on January 1, 2018 and shall terminate on December 31, 2020. 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. COMPENSATION For the first year of this agreement, the City will contribute $98,000 to Greater Oshkosh in 2018. Additionally, the City will also contribute 1.12 per capita of the Per Capita Economic Development Allocation from Winnebago County to Greater Oshkosh EDC for each year that this Agreement is in effect to support economic development and projects as outlined in this Agreement. The City shall, subject to Common Council appropriation, consider budget enhancements to Greater Oshkosh EDC in 2019 and 2020 for support of its programs. All additional requests for funding need to be submitted in writing by July 1st of the preceding year. 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 Greater Oshkosh EDC. If an assignment is made, the City and Greater Oshkosh 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 Greater Oshkosh EDC shall be an independent contractor of the City. Neither Greater Oshkosh EDC nor any of its officers, employees, or agents shall be an employee of the City as a result of the obligations undertaken pursuant to this agreement. Greater Oshkosh 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. Additionally, Greater Oshkosh 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 Greater Oshkosh EDC under this agreement. CONFIDENTIALITY Greater Oshkosh EDC Board members and staff will receive information on a regular basis which has been designated by Greater Oshkosh EDC or a third party as confidential. Greater Oshkosh EDC has determined it is vitally important to maintain confidentiality of information. Greater Oshkosh EDC requires all Board members and staff to agree to protect the confidential information that they have access to during their time with Greater Oshkosh EDC, Greater Oshkosh EDC is committed to open dialogue with City staff and Common Council. However, there may be those occasions where confidentiality requirements restrict the sharing of such confidential information. LIABILITY INSURANCE Greater Oshkosh 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 City: City of Oshkosh City Attorney's Office 215 Church Avenue Post Office Box 1130 Oshkosh, WI, 54903-1130 Attn: City Attorney With a copy to: City of Oshkosh Community Development Director 215 Church Avenue Post Office Box 1130 Oshkosh, WI, 54903-1130 If to Greater Oshkosh EDC: Greater Oshkosh Economic Development Corporation 2380 Hwy 44, Suite B Oshkosh, WI 54904 Attn: Chairman of the Board ASSIGNMENT Greater Oshkosh 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. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day of .2017 GREATER OSHKOSH ECONOMIC DEVELOPMENT CORPORATION Thomas W. Castle Chairman of the Board CITY OF OSHKOSH: Mark A. Rohloff o CITY MANAGER Pamela R. Ubrig o CITY CLERK FUNDING APPROPRIATION: o Trena Larson, FINANCE DIRECTOR APPROVED AS TO FORM: 0 Lynn Lorenson, CITY ATTORNEY