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06 Next Economy Prosperity Plan - City Council - City of Davis

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DATE: February 21, 2013<br />

TO: <strong>City</strong> <strong>Council</strong><br />

STAFF REPORT<br />

FROM: Ken Hiatt, Director <strong>of</strong> Community Development and Sustainability<br />

Katherine Hess, Community Development Administrator<br />

Sarah Worley, Economic Development Coordinator<br />

SUBJECT: Resolution <strong>of</strong> Support for <strong>Next</strong> <strong>Economy</strong> Capital Region <strong>Prosperity</strong> <strong>Plan</strong><br />

Recommendation<br />

Approve the Resolution (Attachment 1) demonstrating <strong>City</strong> <strong>of</strong> <strong>Davis</strong> Support for the <strong>Next</strong><br />

<strong>Economy</strong> Capital Region <strong>Prosperity</strong> <strong>Plan</strong> Executive Summary (Attachment 2).<br />

Fiscal Impact<br />

Approval <strong>of</strong> the Resolution will have no direct fiscal impact. <strong>City</strong> economic development goals<br />

and priority actions are already aligned with goals and objectives <strong>of</strong> the <strong>Next</strong> <strong>Economy</strong><br />

<strong>Prosperity</strong> <strong>Plan</strong>. Implementation <strong>of</strong> economic development priorities requires expenditure <strong>of</strong> city<br />

staff resources and may include project specific financial expenditures. These are accounted for<br />

in ongoing Department operations or will be approved through separate <strong>Council</strong> actions.<br />

<strong>Council</strong> Goal(s)<br />

Economic Development - Promote economic development consistent with our community<br />

values and niche as home <strong>of</strong> a world-class university.<br />

Guiding Principles:<br />

Cultivate a diversified economy, workforce and tax base.<br />

Develop <strong>Davis</strong> as a visitor destination.<br />

Consider potential optimal revenue generated by land use decisions.<br />

Capitalize on the resources <strong>of</strong> a university town, including human capital.<br />

Promote appropriate partnerships with the private sector and the university<br />

community.<br />

Improve the <strong>Davis</strong> business climate.<br />

ED 1. Actively partner with UC <strong>Davis</strong>, Yolo County and other regional partners on land use<br />

planning and economic development to define opportunities and remove constraints to<br />

future innovation business growth.<br />

Entitle the Downtown/University Mixed-Use Innovation District.<br />

ED 3. Support entrepreneurship and access to business support services to strengthen the<br />

entrepreneurial network and to provide opportunities for local business growth.<br />

Identify/develop/promote low cost incubator space to increase number <strong>of</strong> start-ups in<br />

<strong>Davis</strong>.<br />

Support the growth <strong>of</strong> <strong>Davis</strong> Roots, including providing them with a long-term lease.<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 1


Work with UC <strong>Davis</strong>, SARTA, SEED Central and other industry partners to develop<br />

an Ag Innovation Center.<br />

Pursue dispersed innovation center strategy, including centers at the east and west<br />

edges <strong>of</strong> the <strong>City</strong>.<br />

Maximize benefits <strong>of</strong> existing inventory and increase supply <strong>of</strong> flexible business<br />

space.<br />

Background<br />

<strong>Next</strong> <strong>Economy</strong> – Capital Region <strong>Prosperity</strong> <strong>Plan</strong><br />

The <strong>City</strong> and UC <strong>Davis</strong> are participating in a collaborative regional process to develop a <strong>Next</strong><br />

<strong>Economy</strong> - Capital Region <strong>Prosperity</strong> <strong>Plan</strong>. This plan is to provide a “road map” to strategically<br />

align regional resources and efforts to improve our regional economy. The <strong>Prosperity</strong> <strong>Plan</strong><br />

builds <strong>of</strong>f <strong>of</strong> the region’s competitive strengths, defines five overarching goals for regional<br />

execution and maps out a set <strong>of</strong> interlocking strategies and objectives to accelerate job and<br />

wealth creation.<br />

As stated in the Executive Summary (Attachment 2):<br />

“<strong>Next</strong> <strong>Economy</strong> poses a region-wide call to action: Mobilize private industry,<br />

government, academic and civic leadership to focus on a set <strong>of</strong> common strategies and<br />

actions to accelerate job creation and new investment in California’s Capital Region<br />

with the goals <strong>of</strong> supporting innovation and entrepreneurship, diversifying the regional<br />

economy, and improving the business climate for economic growth.”<br />

Development <strong>of</strong> the <strong>Prosperity</strong> <strong>Plan</strong> has involved Valley Vision, Sacramento Area Regional<br />

Technology Alliance (SARTA), Sacramento Area Commerce and Trade Organization (SACTO),<br />

Sacramento Metro Chamber, local and county governments, universities, businesses and nonpr<strong>of</strong>it<br />

organizations. First phases <strong>of</strong> the process included: collection <strong>of</strong> data on the regional<br />

economy and regional industry clusters; prioritization <strong>of</strong> objectives; and development <strong>of</strong> the<br />

Vision and Goals. Development <strong>of</strong> an Implementation <strong>Plan</strong> outlining strategic actions to be<br />

pursued is underway and expected to be completed this spring.<br />

The final <strong>Plan</strong> will be comprised <strong>of</strong> three distinct parts:<br />

1. The Executive Summary sets the strategic framework for the five major regional<br />

economic development goals that enables jurisdictions and organizations to participate in<br />

implementing particular actions that suit the specific needs <strong>of</strong> those they serve or their<br />

unique capabilities.<br />

2. The Strategic <strong>Plan</strong> provides the in-depth narrative context behind the goals, strategies<br />

and actions.<br />

3. The Implementation <strong>Plan</strong> will define very specific actions; the lead champions who will<br />

drive results; timetables and performance measures. It is intended to be a living<br />

document – updated and refined regularly based on changing conditions, market demand,<br />

new opportunities or unforeseen challenges.<br />

Preparation <strong>of</strong> a Regional Comprehensive Economic Development Strategy (CEDS) that meets<br />

the Federal Economic Development Administration’s guidelines, and satisfies eligibility<br />

requirements for federal funding grants is another objective <strong>of</strong> the effort.<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 2


The four regional organizations cited above are entering into formal agreements with one another<br />

outlining how they will work together to guide implementation <strong>of</strong> the <strong>Prosperity</strong> <strong>Plan</strong>. These<br />

agreements will specify the roles, accountability measures, performance obligations and<br />

implementation commitments that each <strong>of</strong> the organizations is responsible to achieve.<br />

Request for Resolutions <strong>of</strong> Support<br />

<strong>Next</strong> <strong>Economy</strong>’s leadership group is seeking unanimous support for the <strong>Prosperity</strong> <strong>Plan</strong> via<br />

resolutions or other forms <strong>of</strong> endorsement from all business, government leaders, education<br />

institutions, not-for-pr<strong>of</strong>it economic development organizations and private industry in the<br />

region.<br />

The <strong>City</strong> <strong>of</strong> <strong>Davis</strong>’s economic development goals and priority actions are already aligned with<br />

those outlined in the <strong>Prosperity</strong> <strong>Plan</strong>. Accomplishment <strong>of</strong> <strong>City</strong> and regional economic<br />

development priorities will be beneficial to local and regional efforts.<br />

The <strong>City</strong> <strong>Council</strong> previously reviewed the Executive Summary <strong>of</strong> the <strong>Next</strong> <strong>Economy</strong> Capital<br />

Region <strong>Prosperity</strong> <strong>Plan</strong> as an informational item as part <strong>of</strong> the October 9, 2012 Economic<br />

Development Update. The Business and Economic Development Commission reviewed the<br />

Executive Summary as an informational item at their December 10, 2012 meeting.<br />

Adopting a Resolution <strong>of</strong> Support for the <strong>Next</strong> <strong>Economy</strong> Capital Region <strong>Prosperity</strong> <strong>Plan</strong><br />

demonstrates the <strong>City</strong>’s concurrence with the plan and its willingness to engage in development<br />

and execution <strong>of</strong> an Implementation <strong>Plan</strong> and local actions necessary to achieve the goals. <strong>City</strong><br />

representatives have and will continue to participate in this effort, including the “Ag/Food<br />

Cluster”, and “Innovation” subcommittees.<br />

The following excerpts from the plan listing the “Core Business Clusters” to be focused on and<br />

new unified “Vision” and “Goals” for the Capital Region confirm their alignment with local<br />

priorities.<br />

Core Business Clusters<br />

Advanced Manufacturing<br />

Agriculture & Food<br />

Clean Energy Technology<br />

Education & Knowledge Creation<br />

Information & Communications Technology<br />

Life Sciences & Health Services<br />

Vision - Within five years, the Capitol Region will be widely regarded as a:<br />

1. Sought-after place for business growth, investment and entrepreneurship<br />

2. Desirable place for young pr<strong>of</strong>essionals to live, study, work and play<br />

3. Diverse economy renowned for its core business clusters and driven in large part by<br />

export activity<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 3


Goals<br />

1. Foster a strong innovation environment<br />

2. Amplify the Region’s global market transactions<br />

3. Diversify the economy through growth and support <strong>of</strong> core business clusters<br />

4. Grow and maintain a world-class talent base<br />

5. Improve the regional business climate for economic growth<br />

A copy <strong>of</strong> the <strong>Next</strong> <strong>Economy</strong> Capital Region <strong>Prosperity</strong> <strong>Plan</strong> Executive Summary is provided as<br />

Attachment 2. A set <strong>of</strong> frequently asked questions about the <strong>Prosperity</strong> <strong>Plan</strong> is provided as<br />

Attachment 3. Additional information about the <strong>Prosperity</strong> <strong>Plan</strong> and process is available at the<br />

<strong>Next</strong> <strong>Economy</strong> website http://www.nexteconomycapitalregion.org/<br />

Attachments<br />

1. Resolution <strong>of</strong> Support<br />

2. <strong>Next</strong> <strong>Economy</strong> Capital Region <strong>Prosperity</strong> <strong>Plan</strong> Executive Summary<br />

3. <strong>Next</strong> <strong>Economy</strong> FAQ<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 4


RESOLUTION NO. 13-XXX, SERIES 2013<br />

A RESOLUTON OF THE CITY OF DAVIS ENDORSING THE NEXT ECONOMY<br />

REGIONAL PROSPERITY PLAN AND AUTHORIZING THE CITY MANAGER TO<br />

ALIGN THE CITY ECONOMIC DEVELOPMENT EFFORTS IN SUPPORT OF ITS<br />

IMPLMENTATION<br />

WHEREAS, the Capital Region has experienced economic hardship and associated lagging<br />

recovery as a result <strong>of</strong> the “Great Recession”; and<br />

WHEREAS, our economy competes and succeeds as a region; and<br />

WHEREAS, our individual jurisdictions strive to work together to improve our region’s<br />

economy to compete within the state, nation and international economies; and<br />

WHEREAS, the <strong>Next</strong> <strong>Economy</strong> is a business-led, volunteer-driven regional effort to grow the<br />

$97 billion annual Capital Region economy; and<br />

WHEREAS, given the size and complexity <strong>of</strong> the challenges, economic development activities<br />

must be strategic and synchronized if they are to have lasting impact; and<br />

WHEREAS, realizing that no single organization can accomplish the broad range <strong>of</strong> strategies<br />

and actions encompassed within the <strong>Next</strong> <strong>Economy</strong>, business, government leaders, educations<br />

institutions, not-for-pr<strong>of</strong>it economic development organizations and private industry must come<br />

together to positively impact our regional economy; and<br />

WHEREAS, the <strong>Next</strong> <strong>Economy</strong> is deliberately designed to invite direct participation from the<br />

broadest array <strong>of</strong> organizations; and<br />

WHEREAS, the public sector, as a leader and integral partner with the private sector in any<br />

regional economic development success, must be fully engaged.<br />

NOW, THEREFORE, BE IT RESOLVED that the <strong>City</strong> <strong>Council</strong> <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Davis</strong> endorses<br />

the <strong>Next</strong> <strong>Economy</strong> Regional <strong>Prosperity</strong> <strong>Plan</strong> and authorizes the <strong>City</strong> Manager to actively engage<br />

in shaping and implementing the plan and to integrate it into <strong>City</strong> economic development<br />

activities.<br />

PASSED AND ADOPTED by the <strong>City</strong> <strong>Council</strong> <strong>of</strong> the <strong>City</strong> <strong>of</strong> <strong>Davis</strong> this 26 th day <strong>of</strong> February,<br />

2013, by the following vote:<br />

AYES:<br />

NOES:<br />

Joe Krovoza<br />

ATTEST: Mayor<br />

Zoe S. Mirabile, CMC<br />

<strong>City</strong> Clerk<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 5


CALL TO ACTION:<br />

Through this action-oriented <strong>Prosperity</strong> <strong>Plan</strong>, the Capital Region <strong>of</strong> California, covering El Dorado,<br />

Placer, Sacramento, Sutter, Yolo, and Yuba counties, joins together to pursue a competitive and<br />

strategic economic development agenda to bring about resiliency, vitality and a wide range <strong>of</strong> new<br />

opportunities for job creation, innovation and increased investment.<br />

<strong>Next</strong> <strong>Economy</strong> is a business-led, volunteer-driven regional endeavor that strives to move a $97 billion annual<br />

economy that has suffered economic hardship and a lagging recovery into one that is diversified, robust and sustainable.<br />

economic<br />

advantages are narrowing under dated models, business leadership from the Sacramento Metro Chamber, the Sacramento Area<br />

Commerce and Trade Organization (SACTO), the Sacramento Regional Technology Alliance (SARTA) and Valley Vision<br />

launched <strong>Next</strong> <strong>Economy</strong> as a collective response. This initiative uncovers competitive strengths and maps out a set <strong>of</strong><br />

interlocking strategies that can accelerate job and wealth creation and boost new investment across the Capital Region.<br />

Given the size and complexity <strong>of</strong> the challenge, economic development activities must be strategic and synchronized if they are to<br />

have lasting impact. It is clear that broad based job creation efforts are necessary to revive economic health on a regional scale and<br />

that a series <strong>of</strong> independent, localized steps will not bring about true economic growth and prosperity for all.<br />

More than a plan, <strong>Next</strong> <strong>Economy</strong> is a movement. It aims to align regional economic development activities and focus them for<br />

maximum impact. To do so, <strong>Next</strong> <strong>Economy</strong> poses a region-wide CALL-TO-ACTION: Mobilize private industry, government,<br />

academic and civic leadership to focus on a set <strong>of</strong> common strategies and actions to accelerate job creation and new investment in<br />

rting innovation and entrepreneurship, diversifying the regional economy, and<br />

improving the business climate for economic growth.<br />

Realizing that no single organization can accomplish the broad range <strong>of</strong> strategies and actions encompassed within the <strong>Prosperity</strong><br />

<strong>Plan</strong>, <strong>Next</strong> <strong>Economy</strong> challenges government leaders, educational institutions, not-for-pr<strong>of</strong>it economic development organizations<br />

and private industry to initiate bold new approaches to bring about economic recovery and to actively work together to make those<br />

approaches succeed. In this way, <strong>Next</strong> <strong>Economy</strong> is deliberately designed to invite direct participation from the broadest array <strong>of</strong><br />

organizations and people possible who are committed to widespread prosperity across the Region. This <strong>Prosperity</strong> <strong>Plan</strong> sets the<br />

common playbook for action, enabling organizations to<br />

in action in ways that fit the needs <strong>of</strong> those they serve.<br />

In the end, however, success lies in ensuring that <strong>Next</strong> <strong>Economy</strong><br />

work plans with strong accountability mechanisms and champions across all segments <strong>of</strong> the Capital Region's leadership. We<br />

encourage you to take part in this important movement to accelerate job creation and investment and together we will move the<br />

Capital Region to the <strong>Next</strong> <strong>Economy</strong>.<br />

Mark Otero | Susan Peters | Martha L<strong>of</strong>gren | Jim Williams | Brice Harris | Craig McNamara<br />

BioWare Sacramento County Brewer L<strong>of</strong>gren Williams + Paddon CA Community Colleges Sierra Orchards<br />

nexteconomycapitalregion. org nexteconomy EXECUTIVE SUMMARY Oct 2012<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 6<br />

1


Goals<br />

The Capital Region <strong>Prosperity</strong> <strong>Plan</strong> lays out five overarching<br />

goals:<br />

1. Foster a strong innovation environment<br />

2.<br />

3. Diversify the economy through growth and support <strong>of</strong><br />

core business clusters<br />

4. Grow and maintain a world-class talent base<br />

5. Improve the regional business climate for economic<br />

growth<br />

Strategic Economic Agenda<br />

nexteconomycapitalregion. org nexteconomy EXECUTIVE SUMMARY Oct 2012<br />

2<br />

A Unified Vision<br />

By uniting job creating activities against a common vision and<br />

activating joint implementation <strong>of</strong> that vision, the Capital<br />

Region becomes poised to engender a new reputation. Vision<br />

Within five years, the Capital Region will be widely regarded as<br />

a:<br />

1. Sought-after place for business growth, investment<br />

and entrepreneurship<br />

2. Desirable place for a quality workforce and young<br />

pr<strong>of</strong>essionals to live, study, work, play and contribute<br />

3. Diverse economy renowned for its core business<br />

clusters and driven in large part by export activity<br />

The Capital Region <strong>Prosperity</strong> <strong>Plan</strong> lays out five overarching goals and a set <strong>of</strong> associated long range objectives and action-oriented<br />

strategies designed to accelerate job creation and investment<br />

strategies will be activated through a set <strong>of</strong> high-priority tactics and performance measures to be developed in coordination with regional<br />

stakeholders and organizations. <strong>Plan</strong> implementation is scheduled to begin in first quarter <strong>of</strong> 2013.<br />

1. FOSTER A STRONG INNOVATION ENVIRONMENT<br />

Objective 1:<br />

BOLSTER UNIVERSITY TECHNOLOGY TRANSFER AND COMMERCIALIZATION<br />

Strategies:<br />

Embed regional research, university technology transfer and entrepreneurship programs within the Region<br />

Identify regional industry needs and align university research capacity for new discoveries and emerging technologies<br />

Develop strong relationships between regional research universities and small business, financing, and incubator and accelerator<br />

programs and services on a region-wide basis<br />

Encourage linkages between researchers making discoveries with entrepreneurs and companies able to commercialize and deploy<br />

Explore opportunities for developing university-industry research centers around regional research strengths and core business<br />

clusters<br />

Objective 2:<br />

EXPAND ACCESS TO CAPITAL FOR HIGH GROWTH COMPANIES AND SMALL AND MEDIUM ENTERPRISES<br />

Strategies:<br />

Establish a centralized access point for information about the sources <strong>of</strong> capital available across all stages <strong>of</strong><br />

a company lifecycle<br />

Build new forms <strong>of</strong> debt and equity capital available to high-growth companies and small and medium enterprises<br />

Facilitate effective connections between funders and companies<br />

Strengthen relationships with external funding sources interested in regional deal opportunities<br />

Leverage public sector investment power to increase the level <strong>of</strong> regional investment<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 7


Objective 3:<br />

BUILD A ROBUST NETWORK OF BUSINESS INCUBATOR AND ACCELERATOR SERVICES<br />

Strategies:<br />

Link existing and emerging incubator and accelerator programs into a regional network<br />

Expand the scope and capacity <strong>of</strong> incubator and accelerator services based on potential market demand<br />

Connect emerging companies in the Region to appropriate components <strong>of</strong> the incubator and accelerator network<br />

Market the existence and outcomes <strong>of</strong> the incubator and accelerator network internally and externally<br />

Build a targeted retention effort focused on viable companies that have received incubator and accelerator services<br />

Objective 1:<br />

GROW INTERNATIONAL TRADE AND EXPORT ACTIVITY<br />

Strategies:<br />

Build a comprehensive regional service provider network that <strong>of</strong>fers effective business assistance, financing, and targeted support<br />

services for international trade<br />

Market the availability and outcomes <strong>of</strong> the service provider network internally and externally<br />

Develop an ongoing series <strong>of</strong> foreign trade missions exclusively designed for local company export promotion<br />

Form strategic relationships with international business networks, existing foreign companies and foreign government agencies to<br />

identify and support international trade opportunities<br />

Ensure transportation infrastructure has the capacity to increase global goods movement and passenger travel<br />

Objective 2:<br />

INCREASE THE LEVEL OF FOREIGN DIRECT INVESTMENT<br />

Strategies:<br />

Enhance coordinated marketing efforts focused on foreign direct investment<br />

Create a diverse and effective group <strong>of</strong> lead generation resources for priority foreign direct investment targets<br />

Expand the amount and frequency <strong>of</strong> foreign trade trips targeting specific companies, industry trade shows, and business networks<br />

Develop a strategic network <strong>of</strong> service providers and regional leaders to assist with outreach efforts and foreign company prospects<br />

Market investment opportunities within the Region to potential foreign investors<br />

3. DIVERSIFY THE ECONOMY THROUGH GROWTH AND SUPPORT OF CORE BUSINESS CLUSTERS<br />

Objective 1:<br />

FORM FUNCTIONAL BUSINESS NETWORKS AND ESTABLISH SPECIFIC CLUSTER INITIATIVES<br />

Strategies:<br />

Recruit members from across the entire value chain to form cluster alliance groups<br />

Perform ongoing cluster needs assessments and facilitate effective solutions<br />

Develop annual cluster alliance group priorities and action plans that focus on increased<br />

jobs and investment, drive implementation <strong>of</strong> needed growth activities, and monitor<br />

progress against stated objectives<br />

Maintain cluster-specific resource guides listing relevant regional programs, services,<br />

and providers<br />

Objective 2:<br />

CREATE AND ALIGN TARGETED PROGRAMS AND SERVICES TO SUPPORT CLUSTERS<br />

Strategies:<br />

Develop marketing materials to build internal and external cluster visibility<br />

Align regional business attraction and retention programs with cluster opportunities<br />

Build targeted innovation and entrepreneurship resources for cluster activities<br />

Explore opportunities to create formal public-private partnerships to foster and grow cluster opportunities<br />

nexteconomycapitalregion. org nexteconomy EXECUTIVE SUMMARY Oct 2012<br />

3<br />

Capital Region<br />

Core Business Clusters<br />

Advanced Manufacturing<br />

Agriculture & Food<br />

Clean Energy Technology<br />

Education & Knowledge Creation<br />

Information & Communications<br />

Technology<br />

Life Sciences & Health Services<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 8


Facilitate new domestic business-to-business sales and foreign exports to increase economic base activities within core clusters<br />

Encourage the creation <strong>of</strong> local and regional incentives that support growth <strong>of</strong> primary jobs across core clusters and other industries<br />

Objective 3:<br />

BUILD STRONG ECONOMIC FOUNDATIONS FOR SUSTAINED CLUSTER GROWTH<br />

Strategies:<br />

Align workforce development efforts to address current and anticipated gaps in labor supply and demand within the clusters<br />

Advocate for public policy at the state and local levels that supports conditions necessary for cluster growth<br />

Build a robust regional network <strong>of</strong> suppliers and service providers for effective cluster operations<br />

Address specialized facilities and infrastructure needs that strengthen connectivity required for cluster growth<br />

4. GROW AND MAINTAIN A WORLD-CLASS TALENT BASE<br />

Objective 1:<br />

CREATE MECHANISMS TO ATTRACT NEW TALENT AND RETAIN EXISTING TALENT<br />

Strategies:<br />

Establish connections between active young pr<strong>of</strong>essionals groups throughout the Region and engage members as ambassadors in<br />

talent attraction and retention efforts<br />

Execute a talent attraction campaign targeting young pr<strong>of</strong>essionals, experienced entrepreneurs, and high demand occupations and<br />

skills<br />

Implement a talent retention strategy focusing on students and recent graduates <strong>of</strong> regional education and training programs<br />

Develop mechanisms to better connect new, existing and prospective students and residents to career opportunities and lifestyle<br />

assets in the Region<br />

Objective 2:<br />

ALIGN TRAINING AND EDUCATION PATHWAYS TO INCREASE ECONOMIC PROSPERITY FOR BUSINESSES AND WORKERS<br />

Strategies:<br />

Mobilize the community to advance and support continued investment in education and related infrastructure<br />

Develop critical career pathways that align with core business clusters across all education and training levels<br />

Address critical gaps in workforce supply and demand across core business clusters and other large industry sectors<br />

5. IMPROVE THE REGIONAL BUSINESS CLIMATE FOR ECONOMIC GROWTH<br />

Objective 1:<br />

REMOVE ECONOMIC AND REGULATORY BARRIERS TO STIMULATE GROWTH<br />

Strategies:<br />

Partner with the business community and other regions in the state to communicate with and influence state policymakers<br />

siness<br />

climate<br />

Build a proactive effort to educate and inform elected <strong>of</strong>ficials and local government leaders about key business issues and industry<br />

needs<br />

Leverage existing regional advocacy programs and, where possible, other state associat y-specific<br />

lobbying efforts to influence a reduction <strong>of</strong> regulatory barriers at the state and federal levels<br />

Foster an effective system to respond to company-specific local-level regulatory issues<br />

Encourage streamlined and predictable permitting policies and procedures across all local jurisdictions in the Region<br />

Pursue local implementation <strong>of</strong> state and federal regulatory requirements that are uniform, streamlined and cost effective<br />

Objective 2:<br />

nexteconomycapitalregion. org nexteconomy EXECUTIVE SUMMARY Oct 2012<br />

4<br />

02-26-13 <strong>City</strong> <strong>Council</strong> Meeting <strong>06</strong> - 9


Strategies:<br />

Mobilize a set <strong>of</strong> inter-locking campaigns, aligned with the <strong>Next</strong> <strong>Economy</strong> vision, that solidify the reputation as the<br />

economic, cultural and recreational capital <strong>of</strong> the State <strong>of</strong> California<br />

Establish a media partner network committed to publishing content that celebrates local and regional achievements internally and<br />

externally<br />

Establish a mechanism for collecting, assembling, coordinating and disseminating key messages and celebratory content<br />

Objective 3:<br />

INTENSIFY ECONOMIC DEVELOPMENT ACTIVITIES THAT DRIVE GROWTH AND INVESTMENT<br />

Strategies:<br />

Build a significant fund that can be used to directly invest in competitive new company locations or expansions that create high<br />

value jobs<br />

Establish a formal, region-wide system to retain local companies and good quality jobs<br />

Prioritize <strong>Next</strong> <strong>Economy</strong> strategies and identify strategic and coordinated funding sources for implementation <strong>of</strong> actions that <strong>of</strong>fer<br />

anticipated high job and wealth creation outcomes<br />

Pursue opportunities with state agencies and departments that result in increased investment, procurement, and/or private-sector<br />

job creation<br />

evelopment activities, the value they <strong>of</strong>fer and the job and wealth<br />

creation opportunities they can garner<br />

Objective 4:<br />

DEVELOP A NEXT ECONOMY GOVERNANCE STRUCTURE THAT ENSURES IMPLEMENTATION AND ACCOUNTABILITY<br />

Strategies:<br />

Align strategic objectives <strong>of</strong> Capital Region non-pr<strong>of</strong>it organizations with a goal <strong>of</strong> collaborating on <strong>Next</strong> <strong>Economy</strong> implementation<br />

strategies<br />

Obtain endorsement from all cities and counties in the Capital Region <strong>of</strong> <strong>Next</strong> <strong>Economy</strong> Goals and Unified Vision, and coordinate<br />

<strong>Next</strong> <strong>Economy</strong> implementation strategies and objectives with public agency partners<br />

Enact a formal Agreement among principal organizations specifying roles and performance obligations toward <strong>Next</strong> <strong>Economy</strong><br />

execution<br />

Track implementation progress, manage accountability, report regularly, celebrate successes and adjust strategies and actions as<br />

necessary for efficiency and maximum return on investment for economic development activities<br />

Examine merits associated with completion <strong>of</strong> a region-wide Comprehensive Economic Development Strategy (CEDS)<br />

-END-<br />

nexteconomycapitalregion. org nexteconomy EXECUTIVE SUMMARY Oct 2012<br />

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F R E Q U E N T L Y A S K E D Q U E S T I O N S<br />

1. What makes the <strong>Next</strong> <strong>Economy</strong> Action <strong>Plan</strong> different from the economic development<br />

work already being done in the region?<br />

What makes the <strong>Next</strong> <strong>Economy</strong> Action <strong>Plan</strong> different is that it goes beyond serving a single city<br />

or county to cover the entire six-county Capital Region. It is also comprehensive and integrated,<br />

with a focus not only upon the importance <strong>of</strong> business attraction, retention, regulations, and<br />

infrastructure, but also upon the full sweep <strong>of</strong> economic development activities like technology<br />

transfer from area universities to spur new high growth businesses, improved access to capital,<br />

increasing trade and export activity, and much more. These activities are channeled through a<br />

business cluster framework that takes advantage <strong>of</strong> the unique competitive advantages we<br />

possess here in the Capital Region. By design, <strong>Next</strong> <strong>Economy</strong> has been created to enable public<br />

and private organizations and agencies to team together to coordinate their economic<br />

development activities in a concentrated approach that amplifies all efforts and has the best<br />

chance <strong>of</strong> success. The partnering organizations in <strong>Next</strong> <strong>Economy</strong> know that we can get much<br />

more done together than by working separately.<br />

2. What will <strong>Next</strong> <strong>Economy</strong> actually produce at the end <strong>of</strong> this planning and research<br />

phase?<br />

The year-long research and planning phase will yield three products and one big deliverable.<br />

First, the Executive Summary otes <strong>of</strong> the action plan that lays out 68 specific<br />

strategies based on research and expert feedback to reach the 5 overarching goals <strong>of</strong> <strong>Next</strong><br />

<strong>Economy</strong>. They are: (1) foster a strong innovati<br />

market transactions; (3) diversify the economy through growth and support <strong>of</strong> core business<br />

clusters; (4) grow and maintain a world-class talent base; and (5) improve the regional business<br />

climate for growth. The second product is the longer Strategic <strong>Plan</strong> that carries the many<br />

details, strategies, the research data and the measures <strong>of</strong> performance to support <strong>Next</strong><br />

<strong>Economy</strong>. The third product is an Implementation <strong>Plan</strong> that includes the specific tactics to be<br />

undertaken, the lead champions, and the timeframe to complete specific actions. In addition,<br />

one big deliverable that <strong>Next</strong> <strong>Economy</strong> has produced so far is the wide level <strong>of</strong> regional<br />

awareness about our R and the stakeholder buy-in to work<br />

jointly across organizations and jurisdictions to create jobs, diversify our economic base, support<br />

growth and innovation, and make this a highly desirable place to draw and develop an educated<br />

workforce.<br />

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3. Developing a plan is <strong>of</strong>ten the easy part. How will <strong>Next</strong> <strong>Economy</strong> be implemented and<br />

held accountable for results?<br />

Right now the four organizations that sparked <strong>Next</strong> <strong>Economy</strong> (the Sacramento Metro Chamber,<br />

SACTO, SARTA, and Valley Vision) are working out the details <strong>of</strong> an oversight group that will<br />

meet next year to oversee the performance results <strong>of</strong> <strong>Next</strong> <strong>Economy</strong> carried out by the many<br />

organizations that have a role in driving economic growth and job creation. The oversight group<br />

will be weighted towards business and will be using jobs, dollars, diversifying our economic base<br />

and building a stronger foundation for long-term growth as the primary yardsticks for measuring<br />

results. As the months go by, progress will be publicized on the Web, through newsletters, and<br />

the media for both accountability and transparency.<br />

Teaming Agreement d that will spell out the specific roles<br />

and responsibilities that participating organizations will undertake to accelerate job creation and<br />

new investment. Used in the construction industry, teaming agreements clarify, coordinate, and<br />

leverage the work <strong>of</strong> multiple groups to get complex things done on time and on budget. The<br />

Metro Chamber, SACTO, SARTA and Valley Vision are expected to be the first parties to enter a<br />

<strong>Next</strong> <strong>Economy</strong> teaming agreement in the next few weeks.<br />

Finally, we know that several public agencies and nonpr<strong>of</strong>it groups are already shifting their<br />

focus, their staff attention, and their funding to align with the <strong>Next</strong> <strong>Economy</strong> strategies. This is<br />

an encouraging trend that we want to see gather steam. Likewise the volunteer boards from<br />

the Metro Chamber, SACTO, SARTA and Valley Vision are making multi-year commitments to<br />

<strong>Next</strong> <strong>Economy</strong> and fusing it into their organizations so that it is a part <strong>of</strong> their dayto-day<br />

activities.<br />

4. How will implementation be funded?<br />

Economic Development organizations, agencies and organizations are actively working now on<br />

economic development activities across the region. The promise <strong>of</strong> <strong>Next</strong> <strong>Economy</strong> is that it will<br />

encourage decision-makers in regional and local organizations to shift resources and staff to<br />

activities that align with and support the defined goals <strong>of</strong> <strong>Next</strong> <strong>Economy</strong>. This shift is already<br />

beginning in workforce development agencies, regional nonpr<strong>of</strong>it groups, and large businesses<br />

that fund economic development organizations and activities. But <strong>Next</strong> <strong>Economy</strong> also focuses<br />

on bold new efforts that will require new resources beyond what is budgeted today. To meet<br />

that challenge, <strong>Next</strong> <strong>Economy</strong> seeks investments from businesses, governments and agencies,<br />

and foundations based on the merits <strong>of</strong> <strong>Next</strong> <strong>Economy</strong> activities to date and the results it can<br />

deliver in terms <strong>of</strong> jobs, new investment, and regional prosperity.<br />

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5. Why the focus on business clusters?<br />

Job and investment growth can accrue to a region<br />

when economic development activities are focused<br />

strategically on growing an entire value chain rather<br />

than an industry. This means focusing on, investing<br />

in, and supporting the growth <strong>of</strong> businesses<br />

clustered all along a value chain; from accessing raw<br />

resources to production to distribution. <strong>Next</strong><br />

<strong>Economy</strong> research has identified six primary<br />

business clusters for which we have a competitive<br />

advantage in the Capital Region: advanced<br />

manufacturing; agriculture and food; clean energy<br />

and technology; education and knowledge creation;<br />

information and communications technology, and<br />

life sciences and health services.<br />

Over the past decade, a large number <strong>of</strong> regions in the U.S. have adopted this cluster-based<br />

concept within their economic development efforts to boost competitiveness and enhance<br />

economic vitality, with great success tate and federal policy has begun to<br />

embrace region-based economic development practices and activities that boost business<br />

cluster growth.<br />

6. How can people and organizations get more involved?<br />

Life Sciences & Health Services<br />

$8.64B annual output and 98,646 total employment<br />

Information & Communications Technology<br />

$9.69B annual output and 30,096 total employment<br />

Agriculture & Food Production<br />

$3.4B annual output and 37,442 total employment<br />

Advanced Manufacturing<br />

$1.74B annual output and 11,409 total employment<br />

Clean Energy Technology<br />

$846M annual output and 3,015 total employment<br />

Education & Knowledge Creation<br />

$1.11B annual output and 16,618 total employment<br />

There are two formal pathways for organizations, private and public, to help implement <strong>Next</strong><br />

<strong>Economy</strong>. First, for public bodies or agencies, we hope to obtain <strong>of</strong>ficial Resolutions <strong>of</strong> Support.<br />

We intend to create a template resolution backed up by the <strong>Next</strong> <strong>Economy</strong> Executive Summary<br />

to serve as<br />

many, this will be simply codifying activities that are already underway. For others, aspects <strong>of</strong><br />

the <strong>Next</strong> <strong>Economy</strong> plan might lay out a new set <strong>of</strong> actions to build-out their job creating<br />

activities.<br />

Private organizations, nonpr<strong>of</strong>its or associations can formulate a unique Teaming Agreement in<br />

league with all the other participating groups in <strong>Next</strong> <strong>Economy</strong>, including SACTO, SARTA, the<br />

Metro Chamber and Valley Vision. It would describe the actions, resources, partnerships and<br />

capacity that Regional Partners are able and willing to commit to support unifying efforts to<br />

accelerate job creation and new investment here. All <strong>of</strong> the Teaming Agreements will become<br />

an integral part <strong>of</strong> the Capital Region <strong>Prosperity</strong> <strong>Plan</strong>.<br />

Individuals are invited and encouraged to <strong>of</strong>fer expertise in specific <strong>Next</strong> <strong>Economy</strong> strategies<br />

and tactics, and to bring forward specialized ideas and connections to broaden and propel the<br />

<strong>Next</strong> <strong>Economy</strong> network.<br />

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7. Who do I contact, or where can I go if I have more questions?<br />

The <strong>Next</strong> <strong>Economy</strong> Project Manager is Christine Ault. Christine.ault@valleyvision.org<br />

Visit the <strong>Next</strong> <strong>Economy</strong> Website by clicking: www.nexteconomycapitalregion.org<br />

8. Who are the people and organizations behind <strong>Next</strong> <strong>Economy</strong>?<br />

<strong>Next</strong> <strong>Economy</strong> Project Team<br />

Meg Arnold CEO, SARTA<br />

Barbara Hayes CEO, SACTO<br />

Bill Mueller CEO & Managing Partner, Valley Vision<br />

Roger Niello President & CEO, Metro Chamber<br />

Ryan Sharp Director, Center for Strategic Economic Research<br />

Christine Ault <strong>Next</strong> <strong>Economy</strong> Project Manager, Valley Vision<br />

Leadership Group<br />

Brice Harris Chancellor, California Community Colleges<br />

Martha L<strong>of</strong>gren Partner, Brewer L<strong>of</strong>gren LLP<br />

Craig McNamara President and owner <strong>of</strong> Sierra Orchards<br />

Mark Otero Studio General Manager, BioWare Sacramento<br />

Susan Peters Sacramento County Board <strong>of</strong> Supervisors<br />

Jim Williams Partner, Williams + Paddon Architects + <strong>Plan</strong>ners<br />

Investors<br />

Bank <strong>of</strong> America<br />

<strong>City</strong> <strong>of</strong> Rancho Cordova<br />

<strong>City</strong> <strong>of</strong> Yuba <strong>City</strong><br />

Dignity Health<br />

Downtown Sacramento Partnership<br />

Eberhardt School <strong>of</strong> Business, UOP<br />

Fire Fighters Local 522<br />

Five Star Bank<br />

Golden Sierra Workforce Investment Board<br />

Kaiser Permanente<br />

Los Rios Community College District<br />

Morgan Family Foundation<br />

Nehemiah Corp<br />

North State Building Industry Association<br />

PG&E<br />

Sac Metro Fire<br />

Sacramento Air Quality Management District<br />

Sacramento County Airport System<br />

Sacramento Employment & Training Agency<br />

Sacramento State<br />

Safe Credit Union<br />

SMUD<br />

Sutter Health<br />

UC <strong>Davis</strong><br />

University <strong>of</strong> Pacific<br />

Wells Fargo<br />

Steering Committee<br />

Michael Ault Executive Director, Downtown Sacramento Partnership<br />

Lisa Bates CA Department <strong>of</strong> Housing & Community Development<br />

James Beckwith President & CEO, Five Star Bank<br />

Kipp Blewett Partner, Rubicon Partners<br />

Elisabeth Brinton Chief Customer Officer, SMUD<br />

Jason Buckingham Executive Director, Golden Sierra WIB<br />

Dave Butler CEO, LEED-Sacramento<br />

Jack Crawford General Partner, Velocity Venture<br />

Steve Currall Dean, Graduate School <strong>of</strong> Management, UC <strong>Davis</strong><br />

Russ <strong>Davis</strong> Board, North State Building Industry Association<br />

David DeLuz President and CEO, Greater Sacramento Urban League<br />

Charlie Downs Senior Principal, Anova Architects<br />

Greg Eldridge CH2MHill<br />

Pat Fong Kushida CEO, Asian Chamber<br />

John Frisch Regional Managing Director, Cornish and Carey<br />

Joe Gagliardi CEO, Folsom Chamber<br />

Lewis Gale Dean, Eberhardt School <strong>of</strong> Business, University <strong>of</strong> Pacific<br />

Laura Gill <strong>City</strong> Manager, <strong>City</strong> <strong>of</strong> Elk Grove<br />

Alex Gonzalez President, Sacramento State<br />

Larry Greene Air Pollution Control Officer / Executive Director,<br />

Sacramento Metro Air Quality Management District<br />

Theresa Hamilton CEO, Fremont Rideout Health Group<br />

Michael Jacobson Director, Corporate Social Responsibility, Intel<br />

Matt Kelly Executive Secretary, Sacramento-Sierra Building &<br />

Construction Trade Association<br />

Sandy Kirschenman Associate Vice Provost, Drexel University<br />

Kathy Kossick Executive Director, SETA / Sacramento Works<br />

Ann Madden Rice Chief Executive Officer, UC <strong>Davis</strong> Health Systems<br />

Mimi Nguyen Associate Director, Asian Resources<br />

Steve Nichols Area Manager, Sacramento, PG&E<br />

Micah Runner Economic Development Manager, <strong>City</strong> <strong>of</strong> Rancho Cordova<br />

David Sanders Managing Partner, World Bridge Partners<br />

Rebecca Sloan Director, External Affairs & Member Services, Sacramento<br />

Area <strong>Council</strong> <strong>of</strong> Governments<br />

Scott Syphax President & CEO, Nehemiah Corp<br />

Keri Thomas Regional Director, Sutter Health<br />

Stan Van Vleck Partner, Stern, Van Vleck & McCarron<br />

Tim Yamauchi Executive Vice President/CFO, PRIDE Industries<br />

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