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HomeMy WebLinkAboutAgenda Statement 1977/12/13 Item 28, 28aCITY OF CHULA VISTA COUNCIL AGENDA STATEMEiVT For meeting Report on South Bay Economic Development Corporation; and ITEM TITLE a)Resolution #89 34 :Appropriating Funds Therefor City Manager G!'-J SUBMITTED BY ~. ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES X NO ) 28, 28a Item No°~_~~ 1 .~~-~ o f _~ ~~7 12/13/77 At the Council meeting of November 1, 1977, the City Council directed that a resolution be brought back in two weeks appropriating $5,000 for support of South Bay Economic Development Corporation activities. This action was in response to a recommendation forwarded by the Mayor's Economic Advisory Committee to fund this organization. At that time, it was also requested that staff evaluate the current proposals surrounding San Diego's Economic Develop- ment Corporation and "Operation Bootstrap". In preparation of this report, staff has relied upon materials supplied by the County Office of Management and Budget, the Economic Research Bureau of the San Diego Chamber of Com- merce and records of discussion occurring during recent Mayor's Economic Advisory Committee sessions. In addition, there have been recent conversations with knowledgeable individuals in the San Diego region's economic development field. The general observation is that the economic development situation is in a state of flux, with several different proposals and organizations addressing the area in various capacities. As the City Council may be aware, since 1972 the County has had an advisory body entitled the Overall Economic Development Program General Committee. This organization was origi- nally established to qualify this region for federal economic development funding. Since that time, this body has broadened its area of endeavor and is now involved in long-range economic planning efforts and the seeking of various forms of financial support for pro- posed projects (primarily grants-in-aid). Recently, a Border States Economic Development Commission has been created, which involves the border areas of California, Arizona, New Mexico and Texas. This inter-state organization will primarily address border development problems and act as a strong lobby for federal funding under Title V of the Public Works & Economic Development Act of 1965. In essence, the agency is a federal/state co-venture designed to develop a long-range regional economic plan, with limited authority to implement resulting plans through specific action programs. Agreement Resolution X EXHIBITS - Ordinance Plat Notification List Other X ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT Appropriate $5,000 from the Community Promotions Account STAFF RECOMMENDATION N.A. unappropriated surplus of the General Fund to the No. 100-0130-5451 BOARD/COMMISSION RECOMMENDATION COUNCIL ACTION Conta_nued to November 29 1977. Continued to December 13, 1977 continued on Supplemental Page 2 1?R~VED Ap b~ the C , ,,mac-, ~ c~.-~J ~~_ __ ;; ~ornla .. ...~~' ~ ~ /1- ~atea~...... 12/13/77 Supplemental Page 2 Meeting of=~~~~~~~~ Item No. _~~,~~~ 28,28a On October 19, 1977, a proposal was forwarded to the full County Board of Supervisors from Supervisors Hamilton, Moore and Hedgecock, regarding the formation of an Economic Development District. This entity would involve San Diego and Imperial Counties, as well as Baja Norte, Mexico (see Attachment I). In addition to the aforementioned existing or proposed organiza- tions, there is also the present San Diego Economic Development Corporation and the newly formed South Bay Economic Development Corporation. While it is important to keep in mind the various actors in economic and industrial develop- ment planning and/or implementation, this report concentrates upon the character and objec- tives of the South Bay Economic Development Corporation and the current/proposed San Diego Economic Development Corporation. The latter organization is presently the center of a significant amount of discussion and activity. Several suggestions have been forwarded for either its absorption into another entity, or reformation into a new non-profit public corporation. To date, the San Diego Economic Development Corporation has been directed by a ten member board, which consists totally of representatives from the private sector. Though both the City of San Diego and the Unified Port District have ex-officio membership and contribute significant financial support, the San Diego EDC is an independent organization. Historically, the San Diego EDC has concentrated on enhancing the attractiveness of the San Diego region to business interests and endeavored to facilitate the location of new industries in the area. Several suggestions have been forwarded with regard to the San Diego EDC and a national marketing proposal entitled "Operation Bootstrap". The most recent thinking now is that the San Diego EDC be reformed and emphasize the objectives of "Operation Bootstrap". Anew Board of Directors would be designated, consisting of private sector representatives appointed in the following manner: 1. 5 representatives nominated by San Diego Chamber of Commerce 2. 5 representatives nominated by the current San Diego EDC 3. 2 representatives nominated by the Mayor of San Diego 4. 1 representative nominated by the County of San Diego 5. 1 representative nominated by the Unified Port District. This fourteen member Board of Directors would direct an organization with a total projected budget of some $495,000, with approximate sums derived from the following sources: 1. City of San Diego $250,000 2. Private Sector 135,000 3. County of San Diego 75,000 4. San Diego Port District 25,000 5. Other Incorporated Cities 10,000 Total $495,000 However, before any new organization could be formed, the existing corporation would have to be dissolved, and this would involve several legal requirements including a meeting of the General Membership, now scheduled during the month of December, 1977. The actual objectives of such a reformed San Diego EDC (EDC II) have not been clearly delineated, though it is reasonable to expect that there would be an aggressive nationwide "selling" of the San Diego region to desired industries. The South Bay Economic Development Corporation was formed in February of this year in response to a felt need for an organization devoted to the interests of National City, Chula Vista, Imperial Beach, San Ysidro and adjacent unincorporated areas. In the past, important business interests in the South Bay felt that the San Diego EDC concentrated its efforts and resources toward assisting with business locations in the Clairemont Mesa and Sorrento Valley areas of San Diego. It appeared as if little real work was being done to improve the economic health of the southern part of the County. Form No. F-229 . ~ 12/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance 100 0105 5441 I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ 1,000.00 Fund General Purpose Reward for information leading to the conviction of vandals Bidder N/A ~~,~~ Director of Finance The City of Chula Vista Date 12/8/77 By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista Date Fund Purpose Bidder By Dept./Activity Certificate No. 50 Supplemental Page 3 Meeting of=1=1=~~g~~~ 12/13/77 Item No. 1=~,~3~= 28,28a The South Bay Economic Development Corporation has a Board of Directors consisting of 17 members representing both the public and private sectors. The annual budget for the organization is projected to be approximately $50,000-$60,000 per year, with additional amounts being sought from various governmental and industry sources as specific projects are undertaken. In general, the organization's objective is to comprehensively approach the problems of the South Bay area and concentrate on evaluating the sub-region's economic strengths and weaknesses. The South Bay Economic Development Corporation would emphasize assistance to existing business interests and encourage them to remain and expand. In addition, the organization would assist any outside interests that are seeking to locate in the South Bay area. Pronouncements by both San Diego EDC spokesmen and representatives of the South Bay EDC indicate they will complement rather than compete with one another. Attached to this Agenda Statement are relevant sections of minutes from the Mayor's Economic Advisory Committee, which detail the pros and cons of funding the South Bay EDC. Essentially, this Committee examined the options of increasing financial contributions to the San Diego EDC and/or funding the South Bay EDC. The basic question revolved around whether the South Bay would have any significant influence over the operations of the San Diego EDC and receive attention which has not been experienced in the past. This issue has not been clearly resolved due to the unsure nature of proposals surrounding "Operation Bootstrap". The issue was again discussed at the Mayor's Economic Advisory Committee Workshop Session on November 9, 1977, and the recommendation was upheld. Two Committee members who had not been present at the original vote concurred, after some questioning, that the amount in question would be well spent. The overall feeling was that the South Bay EDC is a functioning organization which has a good basis of local support. It is governed by persons from both the public and private sectors and, as a result, can be influenced to achieve goals and objectives which would be to the overall benefit of the sub-region. A City Council decision with regard to funding of the SBEDC is quite important to the organization because the allocation of both City of San Diego and County funds has been made contingent upon funding by Chula Vista. San Diego has agreed to match contributions up to a maximum limit of $5,000. The County appears to have a $15,000 figure contingent upon our local action. If and when the San Diego EDC reformation occurs, staff would recommend that this whole area be re-evaluated and funding priorities established. ,/~ ~~ _ - ~~ `~ _~~yh} ,, ~,~' INTER-DEPARTMENTAL CORRESPONDENCE ~~cc October 12, 1977 TO: Board of Supervisors FRO^Z: Clifford Pl. Graves Office of -ianagement and Budget EVALUATION OF "BOOTSTRAP" PROJECT On October 4, 1977 (~16), your Board requested the Office of Management and Budget (OI~3B) to submit a written report on the proposed marr:eting plan for accelerated economic development in greater San Diego - called BOOTSTRAP. The BOOTSTRAP pro- posal was developed by consultants under the guidance of an !1 Industrial Develc~ment Advisory Committee (IDAC). The Chair.-~ man of the Board of Supervisors was the County's representative to that com_:.ittee. Your Board hay been requested to provide $75,000 of the $495,000 pro_ossed annual cost of this three-year program. The City of San Dogo, Unified Port District, other govern- irental agencies and the private sector would provide the balance. i•o d=_, the City of San Diego and the Port have acted to provide their share, contingent upon the raising of th- remaindne f~::-ds. BO•~TSTR~P's c^al is to bring the San Diego County unemployment rite (row 9 . 7 ~; d~:Gn to the projected statewide rate (8 0) in t'~~-=_o ti°ears. ^c Gocomplish this goal, employers must create pea. 11' 18,750 more jobs during that period than the 60,000 whloh are r_o;•; projected. According to the BOOTSTRAP report, 50~ :f this 18,750-job increment is assumod to come from em- ployers already here; the remainder would come from ne~,* businesses. P.F,COn~'IE~;D=~TIO`~:: That your Board 1. Deny the request by the Industrial Development Ad- visory Committee for $75,000 to fund BOOTSTRAP as proposed. Board of Supervisors -2- October 12, 1977 2. P,equest IDAC, in consultation with the proposed County Economic Development Task Force, to develop an action plan of the magnitude of BOOTSTRAP which fully addresses the correcting of San Diego's "correctabl_e weaknesses" and establishes a time--- table to coordinate a promotional and expediter campaign around the accomplishment of these changes. 3. request that EDC provide your Board with the five- year projection of its staffing and budget needs, anticipated funding sources and projected produ::ts based upon its current program level. Discussion: The BOOTSTRAP program is primarily a marketing effort for San Diego aired at raising the level of acaar.eness of key per- sonnel in selected target industries about San Diego as an industrial location. The $495,000 annual budget would enlarge upon as well as enable the continuance of the current Economic Development Corporation (EDC) staff and advertising efforts. About $100,000 }could be for "expediter" staff to work with firms considering a move to San Diego a7;d with local firms planning expansion, The IDAC recc.~~-nended that BOOTSTRAP be implemented by EDC, but that EDC change the composition of its Board of Directors to include representation by the Port and by local governments in the region. 'his recommendation was opposed by the EDC Board, a positior ratified by the EDC membership on October 4, 1977. As an alernative, EDC suggests that the IDAC-proposed Board be an advior°~r group to the present EDC Board for BOOT- STRAP impler::~^tat~.o::. ~ro'hile BOOTSTRAP committee members are being appointed, -a-~ have not been advised if this issue has been resolved, arc if so, how. ti•,e analyzed the :=,OOTSTRAP proposal for consistency ~-aith County Economic Deve lo_rent policy, for benefits to the County rela- tive to the requested contribution, and for technical quality. In conducting the analysis, tae noted that BOOTSTRAP is not a comprehensive economrc development program; it is designed to fill what its proponents believe to be a missing link in a comprehensive program: an aggressive marketing effort. LJe concluded that the BOOTSTRAP's objectives are generally consis- tent with County policy, but that the project is premature from the County's standpoint. Consistency ~~~ith County Policy BOOTSTRAP'S goal is consistent with one element of your Board's Economic Development Policy: promoting balanced growth of e}:ist- ing industry and the attraction of neca industry to San Diego_ Eoard of Supervisors -3- October 12, 1977 Its criteria for selecting target industries is generally consistent ~•;ith your Board's environmental objectives. However, the proposal diverges from your Board's policy in some respects. For example, BOOTSTRAP does not target its. job creation efforts on the chronically unemployed. Also, BOOTSTRAP does not relate its activities to manpower, community and economic development activities in the region. A refired proposal could incorporate these concerns without significantly affecting the basic program. However, its current scope is much narrower than the County's policy con- cerns. Cost versus Benefits Assuming a three-near commitment, the County would contribute $225,000 to the BOOTSTRAP program. This caould be by far its largest contribution to an external economic development effort. If BOOTSTRAP achieves its goal, the County contribution to the effort could yield a substantial return in increased revenues and reductions in social service costs. Several factors will affect both ~^~ success of the effort and the real return.to the County, ho~•1e°Jer. The BOOTSTRAP proposal identifies these factors, but only briefly addresses ho~v they might be dealt with. For example, the proposal notes certain "correctable weaknesses" in San Diego's p~:ckage including extensive regulations on busi- ness development and operations and a shortage of suitable industrial sitar; but then assumes they ;•rill be corrected. But until they are cti:rrected (which will take time), the payoff from tine BOOTSTR~_ ~:r.:-;otion will necessarily be limited. Also, economic de=.%alopment has its costs as well as its benefits. Land, ~•ater, ar_~ energy resources will be strained; and public service costs arc :mown to increase with growth. The County's regional gro~•;th ~::anagement program is wrestling with this issue. In the absence of a well-thought through growth management strategy, BOOTSTP..~P promotional efforts could result in higher public cost than the region may wish to accept. The County could use the same resources for more directed pro- motional effort for other economic development activities, or for non-economic development needs. If your Board elects to support BOOTSTRAP this year, funding must come from the County's reserves. Neither the 1977-78 Budget nor your Economic Develop- ment policy anticipated a project of this magnitude. Board oz Supervisors -~- October 12, 1977 In sunmary, BOOTSTRE'1P's high, but as the timing high and the return may potential re-turn may be premature, not be realized. to the County is the risks are Technical Questions In reviewing the technical aspects of the BOOTSTRAP proposal, ~~e relied or. the written material contained in the Executive Su_~~nary and in tre consultant's report. The technical review resulted in identification of several questions about conclu- sions reached in B00'l~STRAP based on small sample sizes, in- appropriate use of statistical results, and old data. However, these questions don't affect the substantive issues about BOOTSTR_~P, only the degree of its success. In general, however, we found the background data and the process for selecting tar- get ind 'ties ~t'~~asic marketing strategy to be adequate. / t ~' _ VG~~-~ CLIFFORD ~3: ~GP.AVES Assistant Chief Ad.~iinistrative Officer CwG : i•IS : wl FISCAL IP~iPAC`~': ~o~^e ADVISORY BOARS ST?~TENIENT: An OEDP General Committee resolution urging your serious consideration of BOOTSTRAP is attached. Attachments .~ ~~, ~ ~ ~~~ ~ -~ 1: ~~ ~4 ~~,~~ cii~~J~ r'ec~ic~.-~ ry Q~ ~ .' ~ ~~ r.7 ~ ~ ~'2..:..~ ~'o ~ a" 4 J ~.+~r ~i ~ fi't'' ~ ? 5-~ '~ ~'"~ L.. _._:. `:_.: ~ ~ 4 August 16, 1977 Board Of SuperVlSOrS • County of San Diego 1600 Pacific Highway San Diego, CA 92101 _ E i j C..a =. a '1i t 3'~ __~ F,ESOLUTION ENDORSING "BOOTSTP.AP" P~IARRETING PROGRAM CONCEPT ;•7e are enclosinc a copy of Resolution adopted by the General Com~-nittee of the OEDP at its regular meeting of August 9, 1977. It is the conviction of OEDP that a program such as this, oroperly and creati~-ely implemented, can have a significant ~os~i.tive impact o-~ the regional economy . -fence , by t_raT smitt4l of this governmental and civic leaders approval and impi_,;.entation of support and leaders:ti i p towards ~Y..---- f'~ PAIN CONRIQ~E, C___, rr:an EC:AT.eh Enclosures resolution, the OEDP urges all that have an impact on the this program, to provide their its ef~ective implementation_ --county adrnlnlStrc lion cent~:r o morn ~ i < ~60o pacific nigh~,~.a~,~ e san diego, cdliforni_~ ~2~0~ E~ ,• ~~ -r_~ san d~~~~ rw~~on ~: ---, `~ 7 ,a ' - Resolution - _?tc3 236-200'1 _ ` Be ?t resolved tha-~ the Overall Economic ~. Development Progr~.,-z Ge. `rzi Co„tmzttee endorses the concepts pro-- DOS°d 121 t ~`?~ ii3~i:etZPCT prC rim .'~`lr . . ~- I71duS'- ~ 3y' r•~--~~ p.e m`nt, also ~-,-~ ;w;z as "Bootstra that P was prepared by ' the E.cor_o-~yc ?search Bureau of the ` Sar_ Diego Chaffer of• Co_:ri=~rce for the City .of San Diego between April and August X977. The oosit.~-? _,i act of such a .prograri can be signi- S1.Ca~.~ ~O ^'.r~' h?~iOn~:],. F:COIIOmy the OED_ ~ and ~ D urges its ser~.ous c.~,ny; d_ration b- the a ~' PPropr late business ~r2d c~overr_rc`r_`=- -=gGnizatior_s. f ,~ • . s -.~-~ V azn Co ~~.===°-, Cna~.rirtan ~ . Acoated by OE~Jp Date ~;~ ;:.[s r ~ ~1c ~7 ------ - co~_tniy 2dmini;tration center o morn 1 ~ _ 3 •_ Economi c Advisory Co~~,m. • 9/28/77 Presentation by 'I Mr. Efrain Conrique, Mr. Don Perry, and Mr. Tom Moore were South Bay Economic= introduced to the Committee by Chairman Cox. They ti•~ere then asked Development Corp.: to present their case regarding their request far $5,000 of City funds for support of their organization. The major points covered included: 1. South Bay Economic Development Corporation (SBEDC) ~das seen as a complement to the operations of the San Diego EDC ("Bootstrap") and the efforts of the San Diego Chamber of Commerce. 2. The organization is primarily composed of businessmen ~•rho volunteer their services. 3. Recent efforts have been limited due to early organizational problems and restricted funding, yet several tasks have been accom- plished: a. A study of economic ties to Baja California. b. Assistance ~vith joint PJational City/Chula Vista proposal for Honda plant industrial site. c. In-progress research on current and potential South Bay industrial sites. d. Information collection and dissemination on business/ commercial matters (draft "Economic Data Bulletin" provided to the Committee). 4. SBEDC is seen as very much needed in order to stimulate business development in an area ~•~hich possesses a large number of unemployed persons and welfare recipients. SBEDC Conflicts Various members of the Committee asked questions regarding potential tivith Other SBEDC conflicts ~•~ith other organizations, e.g., Chambers of Commerce, Organizations Operation Bootstrap, San Diego EDC, Board of Realtors, Community Development Departments. Response was that it was the intent of the organization to fill voids or gaps in service and not to compete. P~1ember Creaser particularly questioned the value of supporting SBECD relative to Operation Bootstrap. It was felt that the latter organization would have better resources and exert more influence and that the City's investment might more wisely be placed there. In response to this, SBEDC representatives stated Operation Bootstrap was primarily oriented to~vards industrial development, particularly the attraction of outside manufacturing firms. SBEDC ~•~ould take a much more comprehensive, yet sub-regional approach to economic development. Arrival of ~~lember Doll arrived at the meeting at 9:30 p.m. Member Doll: -4- Economic Advisory Comm. 9/28/77 Motion to After sore additional discussion, Member Callahan made a motion, Recommend seconded by Member Doll, that the Committee recommend to the City Funding: City Council to fund SBEDC for one year at the level of 55,000. Under discussion, Member Crane indicated he was not convinced that the X5,000 ~•ras an appropriate amount, and that he desired not to place an additional burden on the tax rate. He also questioned as to ~•rhere the funds would actually be obtained. In response, Chairman Cox suggested that money could be dra~•rn from the Community Development Block Grant, General Revenue Sharing, or the unallocated reserve of the General Fund. Staff representative '~Jittenbe~ noted that under current Federal regulations, funds for this type of activity could no longer be charged to Block Grant funds. Vice Chairman Campbell stated he eras not convinced that SBECC did not conflict with San Diego's organization. ~~?ember Bell then commented that San Diego's EDC had stated on several occasions that the t~:ro organ- izations urere not seen as competing with one another. ~•?ember Creaser restated his position that the City could better spend their ~r,oney in gaining influence with San Diego's EDC. Motion Failed: The motion to recormend funding for SBEDC failed by the folloaring vote, to wit: AYES: Callahan, Doll, Cox NOES: Crane, Creaser, Campbell, Bell Absent:Arthur Member Crane suggested leaving the door open for future consideration. Staff representative lJittenberg indicated that the Committee's vote could be interpreted in several trays. The motion made to fund SBEDC had failed. This did not necessarily mean that the Committee voted to recommend to the City Council not to fund the organization. Therefore, a separate motion might be required to clarify the Com- mittee's desires. f•1otion After some additional discussion, f•lember Bell made a motion to make l~lithdraGVn: no recommendation to the City Council. The motion was seconded by Member Crane and subsequently ~•ri thdra~•rn. ~•lotion to Reconsider:After further consideration of the issues, Vice Chairman Campbell moved, Frith a second by Member Bell, to reconsider the funding issue. The motion carried unanimously. Motion to Table: It was subsequently moved by Vice Chairman Campbell, tivith a second by Member Callahan, to table the request to the meeting of October 26, 1977. The motion carried unanimously. Department Heads In response to comment from staff representative ~~~ittenberg, Chairman to Respond to Cox suggested that the heads of the Planning, Public 4~~orks and Comments on their Building & Nousing Departments be given the opportunity to respond to Operations: comments on their operations at the meeting of October 12, 1977. The Committee approved the suggestion. Adjournment: There being no further business, the meeting was adjourned at 10:25 p.m. r i . ~ Wi ttenberp -~ 5 . Economic Advisory Comm. • ~ 10/26/77 Developer Problems: Vice Chairman Campbell said he felt the General Plan was not being followed. At times, developers have met opposition to plans with the comment that a specific area is not ready for devel- opment and/or contiguous to developed areas. Eiowever, a zone exists so how is a developer to know ghat to do. h1r. Peterson stated he felt a development phasing element should be created and acted upon by the Planning Commission and City Council. This has been one of his long term objectives but several other pressing matters (mandated State elements) have taken precedence in the past. h1ayor Hyde commented that, in several instances, the Council has been at fault with regard to change requirements and/or zoning considerations. One example was a project in the Seavale Street area. Though the Council seeks to avoid such situations ~•rherever possible, it sometimes comes down to a choice of ~vhether a project will be allowed to go through or preventing the creation of an unsatisfactory situation. Mr. Peterson followed by saying that he at times felt he did not receive clear direction from the City Council and this factor made the Planning Department's ~~rork all the more difficult. Reduction of Member Bell questioned ~~rhat could be done to reduce processing times. Processing Times: The "P" modifier involves a lot of ~•rork and discretionary action and should therefore be used very sparingly. Pair. Peterson responded by saying that, due to very recent designation of a Design Review Committee for such areas, the Planning Commission/City Council vicious circle can be dispensed ~~rith. In conclusion, Mr. Peterson indicated he felt the environmental impact process was staggering and that efforts should be made to change the State lati~rs and requirements in this area. Pouch of the delay in the processing of development proposals can be laid to this fact. Arrival of Chairman: Chairman Cox entered at 9:~0 and the Chairmanship was passed to him. Chairman Cox introduced the representatives of the South Bay Economic Development Corporation and stated that a decision on their funding request •had been postponed to this meeting. Mr. Bert Stites, a member of SBEDC's Board, revie~,red the case of the organization and stated that City funding ~•ras very important as both the City of San Diego and the County had made their support contingent upon it. Chairman Cox revieti•red the questions that the Committee had previously had regarding conflicts Nrith the San Diego Economic Development Corporation and emphasized that the two organizations were not in conflict with one another. P~lotion to Fund It was moved by Member Crane and seconded by Chairman Cox to SBEDC: recommend that the City Council fund the South Bay EDC in the amount of $5,000. Discussion of In the ensuing discussion, h1ember Doll asked about the Economic P~1otion: Development District proposal- of Supervisor Hedgecock and others. It was indicated in the San Diego Union issue of 10/21/77 that -, b _ Economic Advisory Comm. ' 10/26/77 the District vrould include San Diego and Imperial Counties as well as Baja California. Mr. Conrique of SEEDC stated that the various proposals being for- . yarded at the present time were not conflicting but complementary and inter-related. He revievred the role of the County Overall Economic Development Program (planning and funding research), the recent designation of the border States Economic Development Com- mission (covering the border areas of California, Arizona, Nevr hler.ico and Texas), and "Operation Bootstrap". Essentially, there is a layering effect and each has a separate responsibility and emphasis. Generally, such things as OEDP will do long-range planning while organizations such as the SBEDC do the actual implementation and fine tuning. Member Doll questioned who was going to actually accomplish the various projects that the SBEDC had previously indicated they were or vrould be vrorF:ing on. In response, it was indicated that though the corporation had but three paid staff members, arrangements vrere being made for the use of university graduate students and cooperative ventures with other related organizations. Motion Carried: Member Bell indicated he felt a property and industrial site inventory was sorely needed, but he could not see much that vrould be accomplished after such a project. The question was called and the motion to fund was approved by the following vote, to wit: Ayes: Members Crane, Cox, Sieglitz Noes: Members Bell, Campbell Abstention: ~~lember Doll Chairman Cox indicated he vrould advise the Council of the Committee's endorsement of the funding proposal at the Council meeting of November 1, 1977. mayor Hyde announced that a presentation vrould be made at the next Mayor's Breakfast November 7, 1977 regarding an iriTDB proposal to acquire San Diego & Arizona Eastern Railvray property. (lotion to Adjourn: There being no further busines, the meeting eras adjourned at 10:40 p.m. to the next regularly scheduled meeting on November 9, 1977. The Committee will meet in lJorkshop Session. ~~~ Jrrl ~•~i ttenberg o~C O ..-~-- ~,~~,„. ~~ ~ • ~ ~ ~ ~~;f~ih('is;lu~l 19'6 ... l~rrli~~ratr~r(f n ('nttimu~tiit~j ~;r~~~il~r ~ U ~~.'~~ 10595 JAMACHA BOULEVARD, SPRING VALLEY, CALIFORNIA 92078 FR ~~`-d~ TELEPHONE: 462-2222, AREA CODE 714 December 9, 1977 Mayor Will T. Hyde and Members of the Chula Vista City Council Gentlemen: ~-'~~l.l?~'' ~`'~c i o, ' ~ ~~~~ + '~ ~ F~ L~ t~~ ~~~ ~ ~~~ ~~ 2197T,~, ,~,'.,,~~S OFFICE ,, ~ It has come to our attention that the South Bay Economic Development Corporation will be making a presentation to your Council Tuesday evening, December 13th. The Otay Municipal Water District, which encom- passes substantial portions of the land in the South Bay, is very interested in economic develop- ment within the City of Chula Vista and other areas of the South Bay. We firmly believe that the South Bay needs the type of vehicle offered by the South Bay Economic Devel- opment Corporation to promote the economic develop- ment of the entire area. We also feel that the City of Chula Vista, being the second largest city in the County and the hub of industry for the South Bay, would naturally assume the leadership role in this endeaver and wish to indicate our desire to be sup- portive of your City in this role. 4Ve respectfully urge your favorable consideration of the Corporation's request. Sincerel , P.a p W . Chapman Presi ent Copies to: City Council City Manager Cole City Clerk Fulasz P~' CONTENTS youth Bay Economic Development Corporation THE NEED . . . 1 THE PURPOSE . . 2 WHY ANOTHER ORGANIZATION . • 3 WHY A PUBLIC INSTITUTION . . . 4 THE ORGANIZATION AND ITS FUNCTIONS 5 FINANCIAL REQUIREMENTS , . . + 7 APPENDICES . . . . . . ~ 8 ANon-profit Corporation Promoting Economic Development THE NEED -- TO LOOK AT THE INGREDIENTS, PROBLEMS, STRENGTHS AND OPPORTUNITIES OF THE SOUTH BAY AREA ECONOMY FROM A BROAD AND ALL ENCOMPASSING POINT-~OF=VIEW; -- TO DEVELOP AND IMPLEMENT AGGRESSIVE PROGRAMS TO REVITALIZE THE SOUTH BAY AREA ECONOA'IY AND EXPAND EMPLOYMENT OPPORTUNITIES FOR ITS RESIDENTS; -- TO INCREASE PUBLIC UNDERSTANDING OF THE RELATIONSHIP AND EFFECT OF PLANNED ECONOMIC GROWTH ON THE QUALITY OF LIFE. THE NEED IS DEMONSTRATED BY: ~-- THE ALMOST TOTAL LACK OF AWARENESS BY POLICY MAKING BODIES AND BUSINESS ASSO- CIATIONS AS TO WHAT "ECONOMIC DEVELOPMENT" IS, AND THE METHODS, COORDINATION AND TECHNIQUES THAT CAN AND MUST BE APPLIED TO BEGIN TO INFLUENCE AND PLAN THE DIRECTION OF THE OVERALL SOUTH BAY AREA ECONOMY. South Bay Economic Development Corporation A Non-profit Corporation Promoting Economic Development -1- THE PURPOSE -- THE SOUTH BAY ECONOMIC DEVELOPMENT CORPORATION IS DESIGNED TO BE A CENTRAL FORUM TO DEVELOP AND ARTICULATE PROGRESSIVE VIEWPOINTS ON ECONOMIC ISSUES: AFFECTING THE SOUTH BAY AREA; -- TO PROMOTE AND ENCOURAGE ECONOMIC GROWTH AND PROSPERITY OF THE SOUTH BAY AREA AND THE DEVELOPMENT OF EXPANDED EMPLOYMENT OPPORTUNITIES FOR ITS RESIDENTS; -- TO ASSIST THOSE PERSONS AND AGENCIES WHO ARE ATTEMPTING TO DEVELOP BUSINESS IN THE SOUTH BAY OR OTHERWISE ARE WORKING TO STRENGTHEN THE ECONOMY AND IMPROVE THE LIVABILITY OF THE SOUTH BAY AREA; -- TO RESEARCH AND DISTRIBUTE INFORMATION ON THE NEEDS FOR~BUSINESS SERVICES AND ON BUSINESS OPPORTUNITIES IN THE SOUTH BAY AREA; -- TO STUDY SOCIO-ECONOMIC PROBLEMS AND OPPORTUNITIES IN THE SOUTH BAY AREA, CONDUCT WORKSHOPS AND SEMINARS ON ECONOMIC AND BUSINESS DEVELOPMENT ISSUES AND RECOMMEND SOLUTIONS AND PRIORITIES; -- TO STIMULATE ORGANIZATIONAL AND TECHNICAL ASSISTANCE PROGRAMS TO PREPARE AND PROMOTE GENERAL AREA PLANS THAT UTILIZE THE ECONOMIC OPPORTUNITIES AND AMELIO- RATE THE ECONOMIC PROBLEMS OF THE SOUTH BAY AREA South Bay Economic Development Corporation A Non-profit Corporation Promoting Econom/c Development -2- WHY ANOTHER ORGANIZATION? -- THE EXISTING ORGANIZATIONS ARE ALL ORIENTED TOWARD PROVIDING SERVICES WITHIN LIMITED BUSINESS OR GEOGRAPHICAL SECTORS OF THE SOUTH BAY OR FOCUS THEIR ATTENTION PRIMARILY OUTSIDE OF THE SOUTH BAY AREA; -- ABROAD BASED PUBLIC ORGANIZATION CAN HAVE ITS POSITIONS ON ECONOMIC DEVELOPMENT ISSUES ACCEPTED AS BEING THOSE OF THE OVERALL AREA AND, THUSLY, BE ABLE TO INFLUENCE THE PLANNING/DECISSION PROCESS ,OF OTHER POLICY MAKING BODIES IN THE REGION; -- THERE IS NOT A SINGLE ORGANIZATION WHOSE PRIMARY FUNCTION IS TO FOCUS ITS ATTENTION AND PROGRAMS ON THE SOUTH BAY AREA AND ITS OVERALL ECONOMIC POSTURE. south Bay Economic Development Corporation A IVon-profit Corporation Promoting Econom/c Development -3- WHY A PUBLIC INSTITUTION? --. ORGANIZATIONS THAT HAVE BEEN EFFECTIVE IN PROMOTING ECONOMIC IMPROVEMENT HAVE BEEN PUBLIC INSTITUTIONS; __ A PUBLIC INSTITUTIONS REPRESENTING AND SERVING THE INTERESTS OF THE GENERAL PUBLIC ON A BROAD SPECTRUM OF ACTIVITIES IS ABLE TO ACHIEVE A HIGHER LEVEL OF CREDIBILITY THAN ORGANIZATIONS WHICH APPEAR TO BE SELF-SERVING IN THEIR SUPPORT TO INDIVIDUAL ISSUES; __ A PUBLIC INSTITUTION CAN QUALIFY FOR GOVERNMENTAL GRANTS FOR ECONOMIC DEVE- LOPMENT STUDIES, PLANNING AND/OR DELIVERY OF SERVICES; __ A PUBLIC ORGANIZATION CAN OBTAIN TAX EXEMPT STATUS FROM THE STATE AND FEDERAL GOVERNMENTS. South Bay Economic Development Corporation ANon-profit Corporation Promoting Economic Development _4 THE ORGANIZATION AND ITS FUNCTIONS --- GOVERNED BY A BOARD OF DIRECTORS THAT IS BROADLY COMPOSED'AND CONSTITUTED FROM THE MAJOR ORGANIZATIONS(a) WHOSE ACTIVITIES INFLUENCE THE ECONOMIC POSTURE AND GROWTH OF THE SOUTH BAY AREA; -- ORGANIZED AS A TAX EXEMPTS NON-PROFITS CALIFORNIA CORPORATION; -- COMMITTED NOT TO BE A NARROW SELF-SERVING ORGANIZATION BUT RATHER, TO BE AN ENTITY TAKING STRONG LEADERSHIP TOWARD THE REVITALIZATION OF THE OVERALL SOUTH BAY AREA ECONOMY AND THE DEVELOPMENT OF EXPANDED EMPLOYMENT OPPORTUNITIES FOR ITS RESIDENTS. (a) See Appendix I South Bay Economic Development Corporation A Non-prolit Corporat/on Promoting Economic Development -5- AREAS OF INITIAL CONCERN SOME OF THE AREAS OF CONCERN TO THE SOUTH BAY ECONOMIC DEVELOPMENT CORPORATION AND WHICH WE WILL BE ADDRESSING ARE LISTED BELOW, THIS LIST OF ISSUES AND TOPICS OF CONS. CERN IS NOT EXHAUSTIVE NOR MEANT TO PREDICT THE TYPE OF EVENTUAL ENDORSEMENT BY THE CORPORATION. WE INVITE YOUR SUGGESTIONS OF ANY OTHER TOPICS THAT YOU CONSIDER WE SHOULD ADD TO OUR OVERALL AGENDA, --- AND YOUR COMMENTS AND RECOMMENDATIONS ON ANY PARTICULAR ISSUE OF SPECIFIC INTEREST TO YOU. POSITION/ACTION ITEMa"i REI'EIITIO:! AIID DEVII.OPAiEIIT OF E3CISTIIiG BUSINESS AIID IIiDUSTRY IN THE SOUTH BAY THE PROPOSED AI3AIiD0tif:''•lEIiT' OF THE S. D, & A,E. RAILWAY DEVELCPMEIIT OF TfIE BI?OWIi FIELD AREA IDiPROVE11EIiT OF THE "IIfAuE" OF THE SOUTH BAY AREA ATTRACTING I7E:V EUSIIJL'SS A;JD ItiDUSTRY TO THE SOUTH BAY DEVE~.OPIIIG MORE L'CONOMIC INTERC}iAi:GE BETNEEII BAJA CALIr"ORNIA/SOUTH BAY AREAS DL'Vf~.CPI'.EIIT OF TOURISM RETAIL TRADE DEVELOPMENT COIISTRUCTION OF F'REE:t1Y ROUTES 5tt~ 75, 125 AIiD ' 252 CHULA VISTA BAY FRONT REDEVELOPItEI7T CHULA VITA CENTER CITY REDEVF.,[',OFMENT TIIE PROIbSED STATE CORRECTIOIIAL FACILITY IN THE SOUTH BAY AREA RESEARCH/PLAIitIING PROJECTS; THE ECOIfOt4IC EFFECTS OF SEVER CAPACITY LIMITATIOIIS A SECOIID BORDER CRCSSIIIG B.~TI'EEII TIJUAI7A AI:D THE SOUTH BAY AREA AIi INVfa+TOI?Y OF INDUSTRIALLY ZCtif'sD AREAS AIID PROJECTED JOB CREATION DE1~lANDS SOUTH BAY/RAJA CALIFORI7IA II:TERDEPEIIDFJiCIES AI7D OPPORTUIIITIFS SOUTH EAY ECOIJOIfIC DEVtU,OPt'IF:I7T I'I.APi DEVI3,OPPIENT OF FOREIGN TRADE ZONES ECOI70MIC EFFECTS OF BORDER RII~1Tf,D II:1•fIGRATION AIiD CP.IME PP,OBLEMS \ A "GUIDE BOOK" 017 Pl:[t?fIT PP.OCEDURI'S~ JURISDICTIONS, OFFICES ETC, PREI'ARATI017 OF A "SOUTH BAY FACTS Pncx>;T" DUSIIfESS SERVICES: PROVIDE A DATA CI37TER FOR SUUTH BAY AREA ECONOMIC IPIFORI~tATION SOUth Bay SITE LOCATIOif I1iF01211.1TION SITE SELECTION ASSISTAIiCE Economic DIRECTORY SERVICES REFI:f?RAI, SERVICES BUSINESS SEI~fINARS ASSIST DL'VL'J.OI'ERS Alill I11Vi:,1'ORS IIi OBTAINING NECESSARY PERItiTS AND EXPEDI= Development TII;G GOVL'RI1MEIiTAL AD1•tINIS1'f?ATIVE ACTIOti ON MAJ01? PROJECTS Corporation • -6- BOARD OF DIRECTORS. THE BOARD OF DIRECTORS IS CONSTITUTED FROM COMMUNITY LEADERS THAT COMPOSE A BROAD CROSS SECTION OF THE MAJOR ORGANIZATIONS WHOSE ACTIVITIES INFLUENCE THE ECONOMIC POSTURE AND GROWTH OF THE SOUTH BAY AREA: one director nominated by the Mayor of National City, Calif.; one director nominated by the Mayor of Chula Vista, Calif.; one director nominated by the Mayor of Imperial Beach, Calif.; one director nominated by the San Diego County Supervisor whose district encompasses the ma3ority of the South Bay area; one director nominated by the City of San Diego Councilman whose district includes the community of San Yeidro; one director nominated by the National City Chamber of Commerce or its President; one director nominated by the Chula Vista Chamber of Commerce or its President; one director nominated by the Imperial Beach Chamber of Com- merce or its President; one director nominated by the San Ysidro Chamber of Commerce or its President; one director nominated by the Otay Mesa Property Owners Association or its President; and ... three (3) directors elected by the Business and Corporate members of this corporation; and, four (4) directors elected by the Individual members of this corporation. -Appendix I- TAX EXEMPT DESIGNATIONS A/F O! CAlI/Of NIA •~''~ RANCHISE TAX BOARD ^,~1 '-CfAM[N70, CA1110fN1A 951.7 Y 'elaphone (916) 355-0392 April 20, 1977 ~ ~,pJ~,YYYY In reply refer to ~Y 344: L: vc : g ~~,~~ ~Y South Bqy Ecoaomie Development Corporation 4045 Bonita Rd., kSte 204 Bonita, CA 92022 Purpose: Charitable Fora of Orgenizetlon: Corporation Aecountinv, Period I:ndinq: December 31 Organization Number: 7916630 8weed oa the inforsation eubaitted and provided your present operations continue unchnnaed or conform to those proposed in your spelieatioa, you ere exempt frog elate franchise or income tax under Section 75701d, Revenue and Taxation Code. Any change in operation, character or purpose of the orvanizetion suet be reported 1ev-diately to this office ro that we may determiee the effect on your exempt statue. Any change of name or •ddreee al ea must be reported. Tou •re requirrd.to filo Form 199 (Except Organization Annual Informstion Return) or Fore 17 :D (}:xempt Organization Aan~lnl Infor+r~tioo Steteecnt) on or before the 15th day of the 5th month l~-1/2 months) wfter the close of your accounting period. Soe annual inntructione with forme for requirements. You are not required to file etste franchise or income teat returns unlace you here income subject to the unrelated bueineee income tax under Section 237'1 of the Gode. In this Brent, you are required to file Fora 1(N (Exempt Orgnniu lion Bueineee Income Tax Return) by the 15th day of the 3rd month ( 2- 1/2 tnonthe) after the eloee of your annual accounting period. Contributions mode to you ^re deductible by donors ae provided by Seetione 1714 through 177.1(1.2 and 24357 through 24359 of the Code, ualees your purpose ie teet- !ng for Pub lie Safety. It the organir.etion ie incorporatinq, this approval will expire unlace incorporation Se completed with the Secretary of State within 30 deVs. Ezemptioo from federal intone or other tazee and other elate tezee requires separate applications. •'Thia exemption effective an of February 14, 1977• ~~ ~ ~. 'This exemption ~';';+r ~Jj~ ct. ex~:r..;~tion will Ji^ Oiroud detcnmination Supervisor Exempt Orgnnizatione (1 ee: Secretary of State (Corp.) ee: Registrar of Charitsble Trusts FTB 4'06 (11-75) ' is issued oo the condition that n Federal De applied for and n cony of the final letter ie furnished to this office. act Mr. Efrain Conrique - Appendix II - Gentlement AaMfs aflr ropy t0: -.O. Bo. ]360, Lo. AneNw, Glfl. 90057 D e P(4Tu~i Chili 3 C~ t~ii cad ~~Y~DG'~J tAtEO:n: rro/ Internal Revenue Service o.e.: ~ m..w. ,.L, m J. Jones AUG 09 1971 ~ L-391, Cale a4~it EOC.2:D Determination Section (21J) 688-4553 EK ~ South Bay Economic Development Corporation 4045 Bonita Road, Suite 204 Bonita, California 92002 AeceuMMa hrbd Ending: December J1 fwm 990 Rfquired: RX rn O No AM~nw Ruane Mkd Endf: December 31, 1981 Bused on the information supplied. and nssuminp, your operations will be as statod 1n your appllcatlon for recoP,nitlon of oxemption, we havo dotorm:nod you aro oxrmpt from Fodoral income tax under section 501(c-~3) of the Internal Revonue Code. Donors may doduct contributions to you as provided in section 170 of the Code. Bequosts, legacies. devises, trans tars, or gifts to you or for your use are deductible far Fodoral estate and gift tax purposes if they meet the applicable provisions of sections 2055. 2106, and 2522 of the Code. If your sources of support. or your purposes, character, or method of operation is changed, you should let us know ao we can consider the effect of the change on your status. Also, you should inform ua of all changes in your name or address. You need an employer identitication number even if you have no employees. if an employer identification number was not entered on pour opplication. a number will be assigned to you and you will be advised of it. Plosse use that number on all returns you file and in all correspondence with the Internal Revenue Service. Sincerely yours, District Director Form L-391 p-z]) _ South Bay Economic Development BOARD OF DIRECTORS G E N•E R A L M A N A G E R oration DEVELOPS AND DIRECTS AN OVERALL PROGRAM DESIGNED TO IMPROVE THE OVERALL ECONOMIC POSTURE OF THE SOUTH BAY ARIA AND CREATE EXPANDING EMPLOYMENT OPPORTUNITIES FOR ITS RESIDENTS. DEVELOPS AND IMPLEMENTS A PUBLIC AFFAIRS PROGRAM THAT INFORMS AND INTERPRETS CORPORATE AND PROGRAM PURPOSE TO THE COMMUNITY. BUSINESS SERVICE OUKirvg: Provide economic development and you-creation referrals and services to the business commu- nity and governmental agencies. ~ tx\Mrltf•~ - - - - - ' Directory services ' Referral services ' Inquiry responses Business seminars • Permit award assistance ruwox~o, BUSINESS DEVELOPMENT outcrnu: Develop and institute programs designed to foster expansion of businesses in the South Bay area and attract new business enterprises to locate in the South Bay. Gk~rnn, - - • Site selection information ' Site s©lection assistance • South Bay area promotion and advertising programs • Development projects' coor- dination and support iuwuiwo: ECONOMIC PLANNING ~ ~ ADMINISTRATIVE SUPPORT O\lF<rIV\\: O\l\Crrl\\: Perform research analyses and Provide clerical/adroinistrativA reports required for South Bay `: support for all functions of economic development planning ,the corporation projects and assignments - ~w - - - - - r - - - - .~ - - - Ix11Mrl~\: • "South Bay Area Industrial Site Inventory and Map" • "South Bay Facts" Packet • "South Bay Economic Develop- ment Plan" "South Bay/Baba California Economic Inter-dependencies" iuwomb: ixerrut, Develop and maintain "Econo- mic Information Data Center" for the South Bay area .~»e»,a, ~~, /~~ South Bay Economic Development Corporation P.O. Box-2506 • Chula Vista, California, 92012 425-71 1 1 November 25, 1977 Honorable Mayor and City Council CITY OF CHUI~A VISTA 276 Fourth Avenue Chula Vista, CA 92010 Ref.: November 29, 1977, Agenda Item We are enclosing some background information of this corporation to assist you in your deliberations as you consi- der our funding request. While this information deals in some detail with the or- ganizational characteristics and purposes for the existence of the corporation, our Chairman and at least another member of our Board of Directors will be available at your Council Meeting to answer any additional questions that you may have. We sincerely hope that you will be able to recognize that the South Bay Economic Development Corporation was formed spec- ifically, and provides the best available vehicle, to make a concerted attack on the conditions that have heretofore dras- tically limited the ect~nomic prosperity of the South Bay. Chula Vista is the second largest City in the County and the hub of business and residential activity for the South Bay. As such, the benefits obtained by an improved economic posture of the South Bay will directly affect Chula Vista's conditions and the input and leadership of Chula Vista on a South Bay economic development program is critical to its success. Together, and with an aggressive and effective program, we can make all of the communities in our,,area be ~eg"~places in which to invest and, thusly, provide th~-~'requir~'~expanded tax base and increase employment opportuni,,t'ies.~ South Bay resi- dents. our ~ t , .' ~ L% , lex ~ ~r ~" ~ l.) Corporate Vice-Chairman AS: mat Enclosures A Non-profit Corporation Promoting Economic Development Chartering Members of the Corporation* WHAT MORE JOBS MEAN TO THE SOUTH BAY AREA The economic expansion obtained from 100 new civilian jobs in the area will support: ~k~-~~~~. 94 HOUSEHOLDS s * + . '~:~ 245 PEOPLE ~_~ ~ ~~' ' SCHOOLING FOR ` ~ ~ta ~~ i. 80 CHILDREN - CREATION OF "~ 1: `~~ 2 RETAIL STORES >> -\ ~ $395,000 MORE ` - ~ RETAIL SALES \' PER YEAR $872,000 ADDITION- " ' ~~ AL PERSONAL INCOME PER YEAR $481,000 ADDITION- ~s AL BAN K \t~ ~~ DEPOSITS SAN YSIDRO CHAMBER OF COMMERCE Marvin W. Carpenter CORNELL'S STATIONERS George Cornell CITY OF CHULA VISTA Gregory R. Coz MEXICAN AMERICAN NATIONAL BANK Gabriel Flores ROHR INDUSTRIES, INC. Ron L. Gundy HAZARD PRODUCTS, INC. R. E. Hazard Jr. T.P. HEARNE CO., INC. Thomas P. Hearne DeFRANCE PRINTING COMPANY Paul K. Howell IMPERIAL BEACH CHAMBER OF COMMERCE Nora Hyer SAN DIEGO SAVINGS & LOAN ASSOCIATION Carolyn Johnson NORW I CH-KAISER-DENTT Gilbert Kaiser MLM DEVELOPMENT CO., INC. Macey L. McMillin, Jr. CONTRACT SYSTEMS ASSOCIATES Tom Moore SAN DIEGO GAS 8 ELECTRIC CO. OTis L. Pemberton MASCOT REALTY Donald W. Perry CHULA VISTA CHAMBER OF COMMERCE William Snedecor CAMPBELL INDUSTRIES Paul I. Stevens CITY OF IMPERIAL BEACH Leebert L. Stites OTAY MESA P.O.A. Alex Struthers EDWARD J. SUDIK O. Edward J. sudik *Bold face names indicate membership on the Board of Directors. South Bay Economic Development Corporation A Non-Profit Corporation Promoting Economic Development of the South Bay Area 516 Madison Ave., Suite G Chula Vista, California 92010 sb ed c THE CHALLENGE During the next several years, population in the South Bay area is expected to increase by more than 5,600 per year. This population increase will require the creation of more than 1,600 jobs every year, approximately half of which need to be in "basic"° employment. Yet, in the decade from 1966 to 1975, total employment in the South Bay area increased at a rate of LESS than 1,400 jobs per year, and "basic" employment actually DECREASED by about 2,000. According to a study by the U.S. Chamber of Commerce this means that the South Bay area's economy lost support for: 1,940 households 7,020 people 1,580 school children 1,360 employees in non-manufacturing jobs 20 retail establishments $20,720,000 personal income (per year ) $ 9,800,000 bank deposits $11,300,00 retail sales (per year) and the increased tax base, available for need- ed public services, that would come from the above economic activity. WHERE DO WE GO FROM HERE? What can you as a businessman do about this situation? Each business, of course, has capabilities of its own to address itself to the market place and create employment opportunities. But no sin- gle business (or governmental agency) has the full capacity to make sure we develop a more di- versified and solid long-range economic base than we now have. Fortunately, there is something we can do . together; and that is the key word: "together". In other communities across the nation, for- ward looking groups of businessmen and civic leaders have faced very similar challenges and have come up with plans that can be applied successfully, by working TOGETHER. °For our purposes, the "basic" sector of our local economy represents those industries which (exclusive of state and federal govemment and the military) derive most of their revenues from outside the South Bay area. Some examples of basic industries are: agriculture, manufacturing, and tourism. It is the "basic" sector that, through its multi- plier and trickle effects, provides the demand for the products and services of the "local serving" sector. The regional labor force consists of the aggregate of those in the "basic" sector, the "local serving" sector, and the "unemployed". In the South Bay area, we have borrowed some pages from their books, added a few of our own, and the result is the SOUTH BAY ECONOMIC DEVELOPMENT CORPORATION. The South Bay Economic Development Corpora- tion has been created to develop programs and provide services that will reverse the economic trend and create the required employment and bu- siness opportunities for the residents of this area. The South Bay's strategic location adjacent to a major Pacific Ocean hazbor and the Mexican border, and convenient to the large and expanding Southern California market, provide for unique opportunities for a wide range of business en- terprises. THE SOUTH BAY ECONOMIC DEVELOP- MENT CORPORATION IS A NON-PROFIT CORPORATION CREATED SPECIFICALLY TO TRANSLATE THESE BUSINESS "`OPPORTU- NITIES" AND "ASSETS" INTO JOB-CREATING BUSINESS CONCERNS. It provides professional research, planning, marketing, promotion, develop- ment, and other assistance to public and private organizations. In plain words, the South Bay Economic Deve- lopment Corporation is organized to work with the business community and with govemment to bring more basic business and more jobs-and thus more clients for you-to the South Bay. It also means a broader base over which to spread the tax requirements of local government and that means proportionately less taxes for you. The South Bay Economic Development Corpora- tion has a small but experienced professional staff oriented to economic development projects and problem solving. Its programs are measurable in absolute terms of success or failure. We in- tend to keep it that way. Our main job is to help -help business locate here, help businesses expand here rather than move, and help businesses with specific problems related to governmental regulations. The South Bay Economic Development Corpora- tion is not a civic organization, yet its Board of Directors is made up of civic and business leaders who have already devoted hundreds of hours and thousands of dollars toward improving the area economy. The corporation can do a job for you and your business that you can not do for yourself but which must be done to revitalize the South Bay area economy. To achieve its goals, the South Bay Economic Corporation needs your help to HELP YOURSELF. Uncle Sam and other governmental treasuries are not endless fountains of money .. certain- ly the handfull of businessmen who already have made major financial contributions to make this organization function cannot be expected to carry the full burden forever. And so you are being asked, as part of your business development efforts, to support the work of South Bay Economic Development Cor- poration financially, -and to personally join in the design and deliberations of its work program. The goal is to spread its support base widely so the burden falls as lightly as ossible on each business so that the program it ~evelops will be a product of the broadest cross- section of the South Bay area business community. But make no mistake, the job the South Bay Economic Development Corporation is performing is one you CAN NOT do yourself and one which you, as a prudent businessman, realize MUST BE DONE. This is your community -its economic future lies largely in your hands. YOUR SHARE IN THE FUTURE Your membership and contributions will gua- rantee the continuing function of the South Bay Economic Development Corporation and will be specifically used to secure matching funds from city, county, state and federal govem- ment sources. All funds and activities are to be directed towards the expansion, conservation and attraction of business and employment oppor- tunities within the South Bay area. GOALS 1977-78 1. Publish South Bay facts packet. 2. Prepare South Bay "Economic Plan". 3. Publish "Guide Book" for those wanting to start a business in the South Bay. 4. Perform study on South Bay/Baja California Interdependencies and opportunities. 5. Compile "Adjusted" inventory of lands zoned for industrial/commercial uses and projected needs for 5, 10, and 20 year periods. 6. Develop and maintain "Economic Information Data Center" for information on the South Bay, its economy, needs and opportunities. WHAT MORE JOBS MEAN TO THE SOUTH BAY AREA The economic expansion obtaineort. from 100 new civilian jobs in the area will supp -1~ 94 HOUSEHOLDS a ~~~;~~ 245 PEOPLE ~~ a SCHOOLING FOR ~~~~.~ 80 CHILDREN ~,l,~ ~ CREATION OF :, J~.~ 2 RETAIL STORES ~ ~~ $395,000 MORE '~ RETAIL SALES \~ ~-'~ PER YEAR $872,000 ADDITION- - AL PERSONAL ,r INCOME PER YEAR x$481,000 ADDITION- ~ ~ ~ AL BAN K ~~ DEPOSITS Chartering Members of the Corporation* SAN YSIDRO CHAMBER OF COMMERCE Marvin W. Carpenter CORNELL'S STATIONERS George Cornell CITY OF CHULA VISTA Gregory R. Cox MEXICAN AMERICAN NATIONAL BANK Gabriel Flores ROHR INDUSTRIES, INC. Ron L. Gundy HAZARD PRODUCTS, INC. R. E. Hazard Jr. T.P. HEARNE CO., INC. Thomas P. Hearne DeFRANCE PRINTING COMPANY Paul K. Howell IMPERIAL BEACH CHAMBER OF COMMERCE Nora Hyer SAN DIEGO SAVINGS & LOAN ASSOCIATION Carolyn Johnson NORW I CH-KAISER-DENTT Gilbert Kaiser MLM DEVELOPMENT CO., INC. Macey L. McMillin, Jr. CONT{2ACT SYSTEMS ASSOCIATES Tom Moore SAN DIEGO GAS & ELECTRIC CO. Otis L. Pemberton MASCOT REALTY Donald W. Perry CHULA VISTA CHAMBER OF COMMERCE William Snedecor CAMPBELL INDUSTRIES Paul I. Stevens CITY OF IMPERIAL BEACH Leebert L. stiles OTAY MESA P.O.A. Alex Struthers EDWARD J. SUDIK O. Edward J. sudik *Bold face names indicate membership on the Board of Directors. South Bay Economic Development Corporation t'" A Non-Profit Corporation Promoting Economic Development of the South Bay Area 516 Madison Ave., Suite G Chula Vista, California 92010 sb ed c THE CHALLENGE During the next several years, population in the South Bay area is expected to increase by more than 5,600 per year. This population increase will require the creation of more than 1,600 jobs every yeaz, approximately half of which need to be in "basic"° employment. Yet, in the decade from 1966 to 1975, total employment in the South Bay area increased at a rate of LESS than 1,400 jobs per year, and "basic" employment actually DECREASED by about 2,000. According to a study by the U.S. Chamber of Commerce this means that the South Bay area's economy lost support for: 1,940 households 7,020 people 1,580 school children 1,360 employees in non-manufacturing jobs 20 retail establishments $20,720,000 personal income (per year ) $ 9,800,000 bank deposits $11,300,00 retail sales (per year) and the increased tax base, available for need- ed public services, that would come from the above economic activity. WHERE DO WEGO FROM HERE? What can you as a businessman do about this situation? Each business, of course, has capabilities of its own to address itself to the market place and create employment opportunities. But no sin- gle business (or govemmental agency) has the full capacity to make sure we develop a more di- versified and solid long-range economic base than we now have. Fortunately, there is something we can do together; and that is the key word: "together". In other communities across the nation, for- ward looking groups of businessmen and civic leaders have faced very similar challenges and have come up with plans that can be applied successfully, by working TOGETHER. °For our purposes, the "basic" sector of our local economy represents those industries which (exclusive of state and federal government and the military) derive most of their revenues from outside the South Bay area. Some examples of basic industries are: agriculture, manufacturing, and tourism. It is the "basic" sector that, through its multi- plier and trickle effects, provides the demand for the products and services of the "local serving" sector. The regional labor force consists of the aggregate of those in the "basic" sector, the "local serving" sector, and the "unemployed". In the South Bay area, we have borrowed some pages from their books, added a few of our own, and the result is the SOUTH BAY ECONOMIC DEVELOPMENT CORPORATION. The South Bay Economic Development Corpora- tion has been created to develop programs and provide services that will reverse the economic trend and create the required employment and bu- siness opportunities for the residents of this area. The South Bay's strategic location adjacent to a major Pacific Ocean harbor and the Mexican border, and convenient to the large and expanding Southern California mazket, provide for unique opportunities for a wide range of business en- terprises. THE SOUTH BAY ECONOMIC DEVELOP- MENT CORPORATION IS ANON-PROFIT CORPORATION CREATED SPECIFICALLY TO TRANSLATE THESE BUSINESS "`OPPORTU- NITIES" AND "ASSETS" INTO JOB-CREATING BUSINESS CONCERNS. It provides professional research, planning, marketing, promotion, develop- ment, and other assistance to public and private organizations. In plain words, the South Bay Economic Deve- lopment Corporation is organized to work with the business community and with government to bring more basic business and more jobs-and thus more clients for you-to the South Bay. It also means a broader base over which to spread the tax requirements of local government and that means proportionately less taxes for you. The South Bay Economic Development Corpora- tion has a small but experienced professional staff oriented to economic development projects and problem solving. Its programs are measurable in absolute terms of success or failure. We in- tend to keep it that way. Our main job is to help -help business locate here, help businesses expand here rather than move, and help businesses with specific problems related to governmental regulations. The South Bay Economic Development Corpora- tion is not a civic organization, yet its Board of Directors is made up of civic and business leaders who have already devoted hundreds of hours and thousands of dollars toward improving the area economy. The corporation can do a job for you and your business that you can not do for yourself but which must be done to revitalize the South Bay area economy. To achieve its goals, the South Bay Economic Corporation needs your help to HELP YOURSELF. Uncle Sam and other governmental treasuries are not endless fountains of money certain- ly the handfull of businessmen who already have made major financial contributions to make this organization function cannot be expected to carry the full burden forever. And so you are being asked, as part of your business development .efforts, to support the work of South Bay ~conomic Development Cor- poration financially, -and to personally join in the design and deliberations of its work program. The goal is to spread its support base widely so the burden falls as lightly as possible on each business so that the program it develops will be a product of the broadest cross- section of the South Bay area business community. But make no mistake, the job the South Bay Economic Development Corporation is performing is one you CAN NOT do yourself and one which you, as a prudent businessman, realize MUST BE DONE. This is your community -its economic future lies largely in your hands. YOUR SHARE IN THE FUTURE Your membership and contributions will gua- rantee the continuing function of the South Bay Economic Development Corporation and will be specifically used to secure matching funds from city, county, state and federal govern- ment sources. All funds and activities are to be directed towards the expansion conservation and attraction of business and employment oppor- tunities within the South Bay area. GOALS 1977-78 1. Publish South Bay facts packet. 2. Prepare South Bay "Economic Plan". 3. Publish "Guide Book" for those wanting to start a business in the South Bay. 4. Perform study on South Bay/Baja California Interdependencies and opportunities. 5. Compile "Adjusted" inventory of lands zoned for industrial/commercial uses and projected needs for 5, 10, and 20 year periods. 6. Develop and maintain "Economic Information Data Center" for information on the South Bay, its economy, needs and opportunities.