City supports recommendations for improving economic development strategies

Today the Economic and Community Development Committee of the City Council heard recommendations of the Mayor's Corporate Retention and Recruitment private-sector subcommittee for improving economic development in San Antonio.

The presentation concluded with widespread support from the business community, Mayor, County Judge and City staff for the recommendations presented. The findings will be shared with the full City Council addressing the needs of the City of San Antonio's economic development system. The recommendation consists of three main components:

• Create a Long-Range Vision and Strategic Plan
• Establish a process and structure for Economic Development in San Antonio
• Improve Resource Utilization

"This is an exciting opportunity to really engage the community in a conversation about what we want San Antonio to be in 10 or 20 years," said Mayor Julián Castro. "We need a strategic plan that not only focuses on attracting new business, but one that places greater attention on retaining the many good corporate citizens we already have in the region."

The City began looking at opportunities to improve corporate retention and recruitment in summer 2008. As a result, several issues were identified which included an assessment of the strengths and weaknesses of the City's overall retention and recruitment processes.

"City staff is in support of the subcommittee's work as it establishes a contractual relationship and formalizes our economic development partnership between the public and private sector," said City Manager Sheryl Sculley. "We are confident this will lead to more effective and efficient collaboration."

The corporate retention and recruitment subcommittee has worked over the past year to acquire information and interview stakeholders in the economic development community. The committee also evaluated national economic industry trends and best practices from other cities.

"It has been an honor to serve as co-chair of this committee with David Zachry. We appreciate the support and cooperation we have received from all of the economic development experts, both in San Antonio and in other parts of the country," said Wayne Peacock, Vice-President of USAA. "We are pleased to see the willingness to embrace these recommendations as we work together to improve our community."

The recommendations will help the City and its partners refocus economic development efforts for attracting and retaining new businesses.

"The Economic Development Foundation is in support of the recommendation and provides a great way to focus resources and build unity across the region in order to create a more expanded approach to recruiting business in San Antonio," added Kenny Wilson, Economic Development Foundation chair.

Attached is a fact sheet which provides specific details on the subcommittee's recommendations.

Fact Sheet
Corporate Retention and Recruitment Subcommittee Recommendation
Submitted by A.J. Rodriguez, Deputy City Manager
November 17, 2009

The Corporate Retention and Recruitment Subcommittee's recommendation has three main components: 1) Create a Long-Range Vision and Strategic Plan, 2) Establish a process and structure for Economic Development in San Antonio, and 3) Improve Resource Utilization.

1. Create a Plan:

• Coordinate Economic and Community Development: Economic and community development are a mutually beneficial partnership.
• Create a systematic approach: Development of a regional vision and strategic plan led by Mayor Castro and Judge Wolff with EDF leading economic development and City/County leading community development.

2. Establish Process and Structure for Economic Development:

• Manage Economic Development Regionally: Adopt MSA as our region of Influence/work with surrounding counties.
• Optimize the Economic Development Delivery System: Assign and promote functions and roles to community organizations.
• Economic development led by EDF with strategy aligned to regional vision and plan: 1) Broaden Charter to include retention and expansion, marketing and analytics, and coordination of economic development activities. 2) Expanded Governance with an Advisory Council led by Mayor and County Judge, 3) Establish funding for EDF from City/County ($500K from each) and 4) Accountability which aligns strategy/goals with the regional plan and routine reporting of performance results.
• Improve Communication and Collaboration: EDF Leads and coordinates all economic development activities in the region and partnering with Government Entities, Chambers, Industry and Trade Groups and Community

3. Improve Resource Utilization:

• Prioritize Investments to Drive Strategy: Create a disciplined strategy for incentives and revalidate incentive strategy annually
• Streamline Public Sector Activities: Phase out non-core economic development activities within City and County; share best practices and continue to promote a pro-business environment
• Optimize Investments in External Entities: Set criteria for funding and develop self-sufficiency plans as appropriate

Conclusion: New EDF Charter will lead an Economic Development strategy aligned with a long range regional vision and strategic plan: 1) Next 90 Days - Modify EDF Charter and By-Laws and execute contracts. 2) Next 12 Months - Create regional vision and strategic plan; Establish economic development strategy, build team and programs.