Discussion and possible action on any and all matters regarding the Economic Development Commission's proposal to establish an Ad Hoc Committee on Historic, Cultural, and Heritage-Based Economic Development. (Armando Esparza, Director of Economic Development & Government Affairs)

On January 29, 2025, the San Luis Economic Development Commission (SLEDC) discussed the creation of an Ad Hoc Committee focused on Historic, Cultural, and Heritage-Based Economic Development. The Economic Development Department, along with Chairman Jesus Carillo and Vice Chair Salma Marrufo, developed a proposal for an Ad Hoc committee within the SLEDC emphasizing the economic potential of leveraging San Luis’ historic and cultural assets to drive job creation, increase property values, boost tourism, and revitalize the community. According to Article VI, Section B of the San Luis Economic Development Commission Bylaws, ad hoc committees may be recommended and approved by the San Luis City Council. The Chairman of the SLEDC will appoint members to this committee, which can include both commissioners and community members.

BACKGROUND
The Arizona State Historic Preservation Office (SHPO), a division of Arizona State Parks, plays a pivotal role in safeguarding the state’s historic and archaeological properties. SHPO collaborates with communities to protect heritage resources, facilitates the Certified Local Governments (CLG) program, and provides incentives such as historic tax credits. This aligns with San Luis' 2040 General Plan, which underscores the significance of historic preservation in enhancing community identity, supporting economic development, and leveraging cultural heritage as an asset.

SAN LUIS 2040 GENERAL PLAN ALIGNMENT

• Community Identity & Preservation: Reinforce community identity through historic preservation efforts and develop standards to preserve the historical integrity of buildings, particularly in the downtown area. 
• Historic Preservation Goals: Pursue CLG status through SHPO, conduct cultural resource surveys, and establish the Economic Development Commission as the board for the CLG program. This will open opportunities for federal Historic Preservation grants to support revitalization initiatives.

OBJECTIVES OF THE AD HOC COMMITTEE

• Identify Properties for Historic Designation: Develop an inventory of historically and culturally significant properties and pursue CLG status.
• Identify Grant Opportunities: Compile grant programs for historic preservation and adaptive reuse, including state and federal funding opportunities.
• Promote Adaptive Reuse for Business Development: Develop strategies for repurposing historic properties into boutique hotels, cultural centers, and retail spaces.
• Increase Tourism through Heritage Assets: Develop marketing strategies to promote San Luis' historic and cultural heritage.
• Assess Revenue Generation & Economic Impact: Evaluate the potential revenue from heritage tourism and adaptive reuse investments.

COMMITTEE STRUCTURE

• Members will be appointed by the SLEDC Chairman and led by the SLEDC Vice Chair. 
• Proposed members include SLEDC commissioners, community members, city staff, property owners, and local business representatives.
• The committee will operate for no more than 24 months and report findings and recommendations to the City Council within this timeframe.

EXPECTED OUTCOMES & BENEFITS

• Job creation through adaptive reuse projects and tourism growth.
• Increased grant funding for property revitalization.
• Expansion of the commercial tax base.
• Growth in heritage tourism, attracting visitors, and increasing local business revenues.
• Strengthened community identity and cultural preservation efforts.

The SLEDC seeks council approval to establish the Historic, Cultural, and Heritage Economic Development Ad Hoc Committee.