City Council Work Session Municipal Court and Council Chambers 14455 W. Van Buren St., Suite B101 Goodyear, AZ 85338 |
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CALL TO ORDER
Mayor Lord called the Work Session to order at 5:00 p.m.
ROLL CALL
- Present:
- Mayor Georgia Lord; Vice Mayor Bill Stipp; Councilmember Joe Pizzillo; Councilmember Sheri Lauritano; Councilmember Wally Campbell; Councilmember Brannon Hampton; Councilmember Laura Kaino
- Staff Present:
- City Manager Julie Arendall; City Attorney Roric Massey; City Clerk Darcie McCracken
| AGENDA ITEMS FOR DISCUSSION |
1.
FOREIGN TRADE ZONE POLICY
Harry Paxton, Economic Development Project Manager, presented an update to the Foreign Trade Zone (FTZ) Program and the proposal of a new policy.
Mr. Paxton provided an explanation of what an FTZ was, stating that it was created by the Foreign Trade Zones Act of 1934 to “expedite and encourage foreign commerce.” The program primarily serves the advanced manufacturing and logistics industries.
Mr. Paxton discussed previous actions relating to FTZs noting that Council approved participation in the Greater Maricopa Foreign Trade Zone (GMFTZ) in July 2009. He added that Council also approved two magnet sites at the PV303 and the Airport Gateway Industrial Site. He stated that the purpose for creating the program was to attract high quality companies to the City’s industrial areas and to encourage spec buildings.
Mr. Paxton shared some examples of current FTZ sites, such as the Airport Gateway Industrial Park which was an FTZ Magnet Site. He also stated that Goodyear had 22 industrial buildings under, and planned for, construction in 2021 that total over 7.7 million square feet.
Mr. Paxton went on to discuss the proposed new FTZ policy providing a comparison of the current magnet site FTZ policy to the proposed new magnet and user driven FTZ policy. He also described a few FTZ Pilot Fee scenarios that the City could anticipate.
Mr. Paxton stated that in the past, the current policy was important to help Goodyear become competitive. Today, a more targeted approach focusing on high paying manufacturing jobs and advanced manufacturing companies was more appropriate. The policy allows Goodyear to remain competitive for high wage advanced manufacturing jobs and it helps the City recapture some sales tax revenue.
Council asked if a company that was close to meeting the suggested numbers that the City wished to use the FTZ for, would the new policy prohibit the company from coming to Goodyear. Mr. Paxton explained that if such a scenario presented itself with a company getting close to the requirements, the proposal would be brought to Council for consideration.
Julie Arendall, City Manager, added that individual exceptions could not be made under this policy. The city could not pick and choose which companies would be allowed under the policy. If the policy was amended, it would have to be amended for everyone moving forward.
Roric Massey, City Attorney, stated that there was a uniformity provision in the policy, based on Federal regulations on FTZ administration, that a policy had to be uniformly applied to all companies once the policy adjustment was adopted.
Council expressed that they hoped there were no unintended consequences of this policy.
Council asked what happened to the PILOT fees that were collected. Mr. Paxton responded that two times a year, the company pays the City of Goodyear a flat amount, that is then sent out to the different taxing jurisdictions.
Council expressed they were in favor of the policy and setting a high bar as Goodyear was proving itself in the industrial and commercial market.
Council asked if any other cities have a similar program like the one the City of Goodyear was trying to establish. Mr. Paxton responded that some communities have developed an unconditional magnet site, but that the City of Goodyear’s policy was the most developed.
A discussion ensued on whether categories should be added to the policy. Council stated it was important to have a policy with standards and to set the bar high to make sure quality salaries are brought to the City.
Council expressed their concern with requiring 100 employees and having User Driven sites, adding that it was arbitrary and a possible hurdle in the future.
Ms. Arendall confirmed that Council consensus was to move forward with the policy as proposed. She added that the policy would be brought back to Council, and she proposed that a provision be added defining a review period for Council to review the policy.
Mr. Paxton provided an explanation of what an FTZ was, stating that it was created by the Foreign Trade Zones Act of 1934 to “expedite and encourage foreign commerce.” The program primarily serves the advanced manufacturing and logistics industries.
Mr. Paxton discussed previous actions relating to FTZs noting that Council approved participation in the Greater Maricopa Foreign Trade Zone (GMFTZ) in July 2009. He added that Council also approved two magnet sites at the PV303 and the Airport Gateway Industrial Site. He stated that the purpose for creating the program was to attract high quality companies to the City’s industrial areas and to encourage spec buildings.
Mr. Paxton shared some examples of current FTZ sites, such as the Airport Gateway Industrial Park which was an FTZ Magnet Site. He also stated that Goodyear had 22 industrial buildings under, and planned for, construction in 2021 that total over 7.7 million square feet.
Mr. Paxton went on to discuss the proposed new FTZ policy providing a comparison of the current magnet site FTZ policy to the proposed new magnet and user driven FTZ policy. He also described a few FTZ Pilot Fee scenarios that the City could anticipate.
Mr. Paxton stated that in the past, the current policy was important to help Goodyear become competitive. Today, a more targeted approach focusing on high paying manufacturing jobs and advanced manufacturing companies was more appropriate. The policy allows Goodyear to remain competitive for high wage advanced manufacturing jobs and it helps the City recapture some sales tax revenue.
Council asked if a company that was close to meeting the suggested numbers that the City wished to use the FTZ for, would the new policy prohibit the company from coming to Goodyear. Mr. Paxton explained that if such a scenario presented itself with a company getting close to the requirements, the proposal would be brought to Council for consideration.
Julie Arendall, City Manager, added that individual exceptions could not be made under this policy. The city could not pick and choose which companies would be allowed under the policy. If the policy was amended, it would have to be amended for everyone moving forward.
Roric Massey, City Attorney, stated that there was a uniformity provision in the policy, based on Federal regulations on FTZ administration, that a policy had to be uniformly applied to all companies once the policy adjustment was adopted.
Council expressed that they hoped there were no unintended consequences of this policy.
Council asked what happened to the PILOT fees that were collected. Mr. Paxton responded that two times a year, the company pays the City of Goodyear a flat amount, that is then sent out to the different taxing jurisdictions.
Council expressed they were in favor of the policy and setting a high bar as Goodyear was proving itself in the industrial and commercial market.
Council asked if any other cities have a similar program like the one the City of Goodyear was trying to establish. Mr. Paxton responded that some communities have developed an unconditional magnet site, but that the City of Goodyear’s policy was the most developed.
A discussion ensued on whether categories should be added to the policy. Council stated it was important to have a policy with standards and to set the bar high to make sure quality salaries are brought to the City.
Council expressed their concern with requiring 100 employees and having User Driven sites, adding that it was arbitrary and a possible hurdle in the future.
Ms. Arendall confirmed that Council consensus was to move forward with the policy as proposed. She added that the policy would be brought back to Council, and she proposed that a provision be added defining a review period for Council to review the policy.
2.
SOUTHWEST VALLEY CHAMBER OF COMMERCE
Julie Arendall, City Manager, presented an overview of the City’s relationship with the Southwest Valley Chamber of Commerce (Chamber) and a recommended path forward.
Ms. Arendall reviewed the history of the Chamber noting that the Chamber was created in 2000 after merging with the Tolleson All-Volunteer Business Association.
Ms. Arendall provided an overview of the Chamber adding that it was an independent entity whose bylaws designate their service areas to include businesses in Avondale, Goodyear, Litchfield Park, and Tolleson. She stated the City partnered with the Chamber to serve as an information and resource center.
Ms. Arendall went on to discuss the challenges the Chamber faced, such as the Global Pandemic, the departure of the CEO and the City of Avondale withdrawing their membership. She stated that the Chamber has hired a new CEO/President, Jeffrey Campos.
Ms. Arendall stated that staff’s recommendation was to provide Mr. Campos an opportunity to conduct an evaluation of the organization and to see what his path forward was over the next year. She added that it was also staff’s recommendation to renew the City’s partnership and membership with the organization.
Council stated that the City of Avondale was no longer a member and asked if the City of Tolleson was still a member. Ms. Arendall replied that while the City of Avondale has ended their membership, the charter and mission of the Chamber was to represent businesses in the City of Avondale and that the Chamber would continue to do that. She added that the City of Tolleson and City of Litchfield Park were also providing the new President an opportunity to chart a path forward.
Council asked what was the City’s value of being a member of the Chamber. Ms. Arendall replied that identifying the City’s expectations of the Chamber would be a valuable exercise she looked forward to having with the new President. She also stated that the essence of what the Chamber does was to connect businesses with other businesses.
Council agreed that it was important to give the new President an opportunity to chart the Chamber’s path forward.
Council asked if the other member cities made a contribution the size of the City’s. Ms. Arendall replied that the City of Avondale had a similar agreement, but was unaware if the other member cities had a similar agreement. The documents were not available to view because the Chamber is a private organization.
Councilmember Campbell stated that as a member of the Chamber herself, she was prepared to ask the City of Goodyear to withdraw its membership because there was no value for its members. She added that she was encouraged that the Chamber was getting a new CEO, who was a proven leader with other Chambers. She stated that she would like to give the Chamber another year and if not, the City could run their own chamber and be very successful.
Council added that in order to be successful, the City needed to work with the new CEO and determine the Chamber’s goals. Council added that they did not want to discontinue the membership until a concerted effort was made.
Ms. Arendall reviewed the history of the Chamber noting that the Chamber was created in 2000 after merging with the Tolleson All-Volunteer Business Association.
Ms. Arendall provided an overview of the Chamber adding that it was an independent entity whose bylaws designate their service areas to include businesses in Avondale, Goodyear, Litchfield Park, and Tolleson. She stated the City partnered with the Chamber to serve as an information and resource center.
Ms. Arendall went on to discuss the challenges the Chamber faced, such as the Global Pandemic, the departure of the CEO and the City of Avondale withdrawing their membership. She stated that the Chamber has hired a new CEO/President, Jeffrey Campos.
Ms. Arendall stated that staff’s recommendation was to provide Mr. Campos an opportunity to conduct an evaluation of the organization and to see what his path forward was over the next year. She added that it was also staff’s recommendation to renew the City’s partnership and membership with the organization.
Council stated that the City of Avondale was no longer a member and asked if the City of Tolleson was still a member. Ms. Arendall replied that while the City of Avondale has ended their membership, the charter and mission of the Chamber was to represent businesses in the City of Avondale and that the Chamber would continue to do that. She added that the City of Tolleson and City of Litchfield Park were also providing the new President an opportunity to chart a path forward.
Council asked what was the City’s value of being a member of the Chamber. Ms. Arendall replied that identifying the City’s expectations of the Chamber would be a valuable exercise she looked forward to having with the new President. She also stated that the essence of what the Chamber does was to connect businesses with other businesses.
Council agreed that it was important to give the new President an opportunity to chart the Chamber’s path forward.
Council asked if the other member cities made a contribution the size of the City’s. Ms. Arendall replied that the City of Avondale had a similar agreement, but was unaware if the other member cities had a similar agreement. The documents were not available to view because the Chamber is a private organization.
Councilmember Campbell stated that as a member of the Chamber herself, she was prepared to ask the City of Goodyear to withdraw its membership because there was no value for its members. She added that she was encouraged that the Chamber was getting a new CEO, who was a proven leader with other Chambers. She stated that she would like to give the Chamber another year and if not, the City could run their own chamber and be very successful.
Council added that in order to be successful, the City needed to work with the new CEO and determine the Chamber’s goals. Council added that they did not want to discontinue the membership until a concerted effort was made.
| ADJOURNMENT |
There being no further business to discuss, Mayor Lord adjourned the Work Session at 6:21 p.m.
| __________________________ Darcie McCracken, City Clerk |
__________________________ Georgia Lord, Mayor |
Date:___________________ |