Discussion and possible action on any and all matters regarding a proposed contract with the Greater Yuma Economic Development Corporation for regional economic development efforts.  (Jenny Torres, Acting City Manager)

Organizational Structure: The Greater Yuma Economic Development Corporation (“GYEDC”) is a private non-profit corporation funded by public sector funders (Yuma County and City, Somerton, Wellton, and San Luis) and private sector funders who use the services. The city has entered into contracts that expire every year on June 30. Termination during the contract may be terminated without cause with 90 days’ notice.

Service: GYEDC provides services focused on attracting commerce and industry to the region and assisting in developing the region’s existing industry to its fullest potential. The proposed contract is in substantially the same form as prior years and sets out measurable goals listed below in the compliance section of this agenda item summary. However, the proposed fiscal year 2023-2024 contract removes the requirement of two (2) large manufacturing companies for the San Luis Business Incubator since the incubator has filled those vacancies. The proposed contract reduces the number of prospects from ten (10) to a realistic number of five (5). Finally, the proposed contract requires a report on compliance with the contract and the invoice for funding to be provided by April 9, 2024, in time for the CITY’s budget process. April is late enough that information on three (3) quarters of the fiscal year will be available.

Compliance: Specific, measurable goals in the expired contract are:

•  identify ten (10) qualified business prospects to locate in San Luis, 
•  identify ten (10) qualified business prospects to locate in the greater Yuma County area,
•  complete fifteen (15) survey calls as part of a structured Business Retention and Expansion program,
•  provide San Luis’s GYEDC Board representative (Council Member Matias Rosales) with every other month’s activity reports (provided on the scorecard), and
• secure at least two (2) manufacturing companies for the San Luis Business Incubator’s larger suites. (Last year’s contract was out-of-date. The city had already secured businesses for the San Luis Business Incubator’s larger suites without GYEDC assistance. However, during the 2022-2023 fiscal year, GYEDC did alert the Economic Development Department to prospects that needed at least 5,000 square feet, but none were available anywhere in San Luis.)

GYEDC provided a slide deck mid-year report and a scorecard (both attached). 

Amount: The city has entered into an agreement with GYEDC for economic development services in past years. The GYEDC submitted their request for $63,763.00 for the upcoming fiscal year 2023-2024, the same as the last amount the city paid in the 2022-2023 fiscal year. The GYEDC bills quarterly.  

Motion: The staff prepared a motion of approval. However, the staff is neutral on whether to approve or deny funding because the item is part of the City Council’s budget and not part of any operational department’s budget.