PRESENTER: Presenter
Jonathan Packer, CEO, Greater New Braunfels Chamber of Commerce
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SUBJECT: Title
Discuss and consider a three-year professional services agreement between the New Braunfels Economic Development Corporation and the Greater New Braunfels Chamber of Commerce for an economic development program; and declaring an effective date.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Economic development is the intentional practice of improving a community’s economic well-being and quality of life. It includes a broad range of activities to attract, create, and retain jobs, and to foster a resilient, tax base and an inclusive economy. The practice of economic development comprises a collaborative effort involving industry, government, and myriad community stakeholders. Economic developers collaborate with entrepreneurs, existing businesses, workers, neighborhood groups and new businesses wanting to locate or expand in the city of New Braunfels. The work undertaken by economic development groups helps provide the resources needed to fund city services, enhance quality of life amenities, and provide for resiliency in the case of economic downturns. The primary public funding mechanism for economic development activities is the New Braunfels Economic Development Corporation. The NBEDC receives a portion (25%) of the City’s sales tax, which is used to fund economic development activities and to financially support or completely undertake quality of life improvement projects for New Braunfels.
The Chamber of Commerce maintains a professional services agreement with the New Braunfels Economic Development Corporation (NBEDC) to undertake specific economic development programs consistent with the 2023 Economic Development Strategic Plan (EDSP). The Chamber provides dedicated economic development staff and professional services to support and implement the strategies and actions as outlined in the EDSP. The NBEDC and Chamber have agreed to enter into the services agreement to further the goals and objectives of the EDSP. The agreement’s appendix outlines specific objectives and measurements consistent with the plan that broadly measure progress in the following six goals:
1. Attract quality jobs in target industries
2. Create competitive office and industrial spaces
3. Support the success of startups
4. Align and optimize the workforce
5. Improve mobility and transportation options
6. Execute proactive land use and development strategies
ISSUE:
Funding the Professional Services Agreement with the Chamber of Commerce. Since this item was considered at the September 12th meeting, the Agreement now reads in section 4.03 that either party can cancel or terminate with 90 days written notice.
FISCAL IMPACT:
$1,800,000 over the three-year contract period and paid in monthly installments. $550,000 in 2023; $600,000 in 2024; and $650,000 in 2025. The contract has a two-year automatic renewal unless either party provides 90 days written notice to terminate. The Chamber is also simultaneously undertaking private sector fundraising efforts to complement the public funding through the EDC. This will significantly bolster and enhance the community’s overall economic development efforts with expanded staff, marketing, and other resources to complete the goals as outlined in the 2023 EDSP.
Recommendation
RECOMMENDATION:
The NBEDC voted to approve the PSA 6-0 at its meeting on August 18, 2022.
Staff recommends approval of the PSA with the Chamber of Commerce.