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HomeMy WebLinkAboutMinutes EDAB 081006Economic Development Advisory Board August 10, 2006 The Economic Development Advisory Board met on July 20, 2006. The meeting was called to order by the Chairman, Kenneth Kahn, at 8:30 A.M. in the Council Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida, and opened with the Pledge of Allegiance. I. Roll Call Members Present Kenneth Kahn Chair Lou Gaeta Vice Chair Casey Steinbacher Mark Murnan Steve Cohen 1 st Alternate Members Absent Elaine Beers Sandra Foland 2nd Alternate James Kissel Also Present: Dolores Key, Economic Development Director and Staff Liaison Kara Irwin, Growth Management Administrator Dan Clark, Growth Management II. Approval of Minutes The Board approved the minutes from the July 20, 2006 meeting. III. Staff Report Dolores Key announced to the Board that Kara Irwin had been appointed as permanent Growth Management Administrator. The Board congratulated Kara on her new position, and she spoke briefly to say thank you. IV. New Business Dolores Key announced that the City of Palm Beach Gardens will be hosting the Burns Road Recreation Center Grand Re- Opening on Friday, September 8th. The newly formed Palm Beach Gardens Historical Society and the Palm Beach Gardens Woman's Club will be assisting us in assembling and burying a new 20 -year time capsule outside the recreation center. Charlotte Presensky, Recreation Division Director, requested that the Board provide one item for the Time Capsule. The meeting was opened to suggestions and ideas from the members of the board. Kenneth Kahn suggested that one of the items that Dolores Key had developed should be used. The Board approved this addition. Economic Development Advisory Board Minutes 081006 Page 1 V. Continued Business There is a proposal for the Board to set aside funds to be used as financial incentives and tools for the Business Development Board to use in their recruitment process to attract businesses into the City. Dolores Key stated that the PowerPoint presentation shown to the Board at the previous meeting was the baseline of data and information and had been presented to Andrew Duffel[. The Mayor had asked that members from the Business Development Board be asked what they felt would be appropriate incentives for the City to offer. Since Mayor Joe Russo is on vacation, Dolores Key introduced Kelly Smallridge, President of the Business Development Board, and Andrew Duffell, Senior Vice - President of Development, to present to the committee their ideas as to what appropriate financial incentives would be. A discussion began between Kelly Smallridge, Andrew Duffell and the committee regarding the development of the Life Science Industry and industries pertaining to the Bio- Science cluster. Excitement has certainly begun since Scripps validated Palm Beach County as a viable location. About three months ago the governor announced that he would jumpstart the financial incentives for Life Science companies throughout the state. He asked the Legislature for a $250 Million fund to be replenished and set up for the establishment of the Life Science industry to come before the state on August 17th. There are two projects out of 7 or 8 that are interested in Palm Beach County. The companies are not interested in coming to the area for free. Dollars as well as providing security, building needs and other financial incentives are important. One company that should account for a sizeable amount of that $250 Million fund brings a $90 Million package, roughly 100,000 square feet build -to -suit, and about 189 jobs. Presently it looks as though they are interested in the South County area to be close to FAU's Schmidt Bio- Science College and teaching hospital located there. In addition to Scripps in the North end, plus Burnham in St. Lucie, this will give us a strong opportunity for Palm Beach Gardens to have a strong Research and Development foundation that is critical to be able to recruit the commercial pharmaceutical companies. The key to attracting these companies, as set out by C. B. Richard Ellis, is to have a strong Research and Development basis either from non - profit Research and Development companies or the universities in order to attract the commercial pharmaceutical companies. The Business Development Board needs strong public support, and it is their understanding that the state has issued a Request for Proposal that will allow other areas to attract these businesses away. The second project being pursued is Project Checkmate — it takes the IBM Scripps Pandemic Flu project to the next level. It will compute all genetic mutations of the Pandemic Flu using a super computer. Although the project is small, the center will attract scientists and worldwide recognition, even more than Scripps. Economic Development Advisory Board Minutes 081006 Page 2 The third project Andrew Duffell is presently working on is a commercial $3 Million package which will provide approximately 200 jobs. Companies like this are not interested in closing down current companies; they want to open an additional facility here. Since National Institutes of Health dollars cannot be used for lands, bricks & mortar, they need to have incentives and guarantees to make this possible. There is excitement and momentum, but the spin -offs coming off of Scripps require Venture Capital and funding. The wet lab will be in the north end of the county and with new things happening with FAU's Abacoa location, it will add to the recruiting, but the Life Science companies will require dollars plus other types of incentives such as guarantees and security. The Business Development Board is going to the meeting on August 171h to try and get some Matching funds for Palm Beach County to set up a cluster. Casey Steinbacher asked what other cities are doing. Kelly Smallridge answered that she and Andrew Duffell had toured a company they are trying to attract to several cities. The Mayor of Boca Raton has traveled with them to California to the parent company and shown interest. Boca was told they didn't have enough funds; however, they had the format set up from their Scripps package; Boca donated 10 acres in property and a building space for three /four years as an incentive to attract the business. That put Kelly Smallridge and Andrew Duffell in the ballgame with the state of Florida for matching funds. The formal resolution is now forthcoming from Boca. The immediate response team from Boca had the authority to tell the Business Development Board to proceed. Kelly Smallridge suggested to the Council that instead of working on Marketing, since they have $1.5 Million in incentive funds, that the City of Palm Beach Gardens focus on attracting smaller businesses. Different kinds of incentives should be developed in addition to dollars, such as working with utility companies, fire and police protection, etc. A menu of incentives and an immediate response team should be developed. A combination of the Mayor, City Manager and internal staff members for the City should be involved in this process to develop what they want to offer. They need to develop their mechanism or framework and have their point people readily available to negotiate with businesses that the Business Development Board is trying to attract. Kelly Smallridge suggested that the funds be flexible with regard to dollars, number of jobs, and square footage since these items will vary from business to business. The Business Development Board is focusing on quality and not quantity. The idea should be to show that the business is wanted in Palm Beach Gardens. The Business Development Board has a comprehensive plan that cities can adapt to. The marketing is not where they are short; they are short in incentives such as guarantees, leases, and providing space. A Quick Reaction force should be developed composed of persons who have the responsibility to take action and are able to work without setting up roadblocks, and who have authority to implement funds or incentives. Economic Development Advisory Board Minutes 081006 Page 3 The funds that Palm Beach Gardens presently has available, $1.5 Million, will fuel a small company; Kelly Smallridge suggested that the City needs to work with local developers to find space, to provide guarantees from City and County; and to find much needed seed capital and venture capital. Palm Beach Gardens should develop a menu showing what the City is ready to offer. Casey Steinbacher suggested that in addition to incentives that attitude needs to be worked on. Marketing dollars will only be important when it comes to items such as travel money to work with proposed incoming businesses. Kenneth Kahn remarked that the City needs to focus on capital and operating expenses. Dolores Key stated that in government accounting the economic development fund has to draw from line items such as impact fees, water reservation, etc. Advolorem funding would require a public referendum and we would need a grassroots basis to draw upon. Dolores Key has done an analysis on the state level. Dependent upon the budget, the City needs to augment what the Business Development Board does. At this point we have not finalized because we want to show proper due diligence and to make sure we are leveraging dollars. We need to have flexibility to allow companies to have intensity and density. There have to be checks and balances within the government parameters. Kelly Smallridge recommended focusing on smaller spin- off companies and working with developers, who will allocate space; the City can provide guarantees for real estate and working with utilities. Seed capital should be readily available for them to use. The Business Development Board has materials available for Palm Beach Garden's use that show what other cities have done and how they went about doing it; they will share those resources. The Council needs to have an education process so they can learn what their $1.5 Million budget will really provide. Casey Steinbacher said that we need more than a menu; we need to show how we are going to augment and show incentives such as police guarantees, and show a big impact on these small companies. Kara Irwin stated that two budget workshops have already been planned to cover the broad strokes, to plan the menu and show the importance of funds. We need Council buy -in from the Economic Development Advisory Board. To accomplish this, we should look at existing companies that are similar to the respective business to study the expenses they are incurring. This will enable Palm Beach Gardens to spot where they can be flexible. Kenneth Kahn stated that the utility companies should have representatives invited to help them buy into the vision and to set up a response person. The show of support from the Economic Development Advisory Board with The Business Development Board would be a better avenue to present information to Council. This would show direct and indirect expenses and how they would be developed. Kenneth Kahn suggested that the Economic Development Advisory Board schedule a special meeting when Kara Irwin has information ready to present to the Council. Opposition can naturally be expected by some of the residents; however, this can be overcome by explaining that although the incoming companies may be small, they will provide jobs and recognition. Kenneth Kahn and committee members thanked Kelly Smallridge and Andrew Duffell for attending and providing their information and suggestions. Economic Development Advisory Board Minutes 081006 Page 4 VI. Next Meeting Topic It was the consensus of the Board to have the next meeting on September 14, 2006 to discuss the budget and the economic development fund, strategy, menu, incentives other than monetary, such as Police protection, utilities and reduced water. Representatives from the utility companies such as Seacoast, FPL, and Northern Improvement District, should be invited to the next meeting so they can be informed of the City's economic development fund and be prepared to provide a person for the Quick Response Team who would make it easy to get deposits & fees reduced when companies are up for consideration. Two members of the public were present, but they did not have any comments. Economic Development Advisory Board Minutes 081006 Page 5 VII. Adjournment With no further business to discuss the meeting adjourned at 9:39 AM. Approval: Kenneth Kahn, Chairperson Lou Gaeta, Vice Chairperson Elaine Beers, Board Member Kiss'bl, Board Member Murnan, Board Member Casey Steinbacher, Board Member Steve Cohen, Alternate Board Member Sandra Foland, Alternate Board Member Attest: Ray Ellis Deputy City Note: These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the City Clerk. Economic Development Advisory Board Minutes 081006 Page 6