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1990R15- ECONOMIC DEVELOPMENT PLAN " , , RESOLUTION NO. 9o--/C-/ ~ A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, ADOPTING THE SCHERTZ ECONOMIC DEVELOPMENT PLAN WHEREAS, the City Council of the City of Schertz, Texas, is committed to managed economic development; and WHEREAS, the City Council is principles, policies and procedures for embodied in this plan; NOW THEREFORE, in accord with the economic development BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: THAT the City Council by this resolution adopts this plan as official. Implementation of this plan will be at the direction of the City Manager and the Chairman of the Economic Development Task Force. Staff support will be provided as available or as needed. This plan will be reviewed by August 1, 1991, and every year thereafter. ~ ~ ,/ Mayor, City of Sc PASSED, APPROVED AND ADOPTED this the /~ day of , 1990. ATTEST: " ECONOMIC DEVELOPMENT TASK FORCE OPERATING PLAN CITY OF SCHERTZ Prepared September, 1990 Table of Contents Resolution Adopting plan Section I Purpose Economic Development Defined Goal Definition Changes, Additions, and Deletions Annual Review/Revision Organization of the EDTF Role of Economic Development Task Force (EDTF) Task Description Development of Proposal/Tasks Meeting, Minutes, Reports, and Other Documentation Interrelationship with Other Agencies Relationship to Comprehensive Plan Incentives for Economic Development Objectives and On-Going Tasks Appendix 1. Assets & Liabilities Appendix 2. Task Format Section II Implementation Residential Growth Existing Business Development New Business Development City Project Data Gathering Incentives for Economic Development Funding for Economic Development Page No. 1 1 2 2 2 3 3 4 4 6 6 8 8 9 11 13 14 15 16 17 19 20 22 24 Economic Development Task Force Operating plan for the City of Schertz Section I 1. Purpose. The Economic Development Task Force (EDTF) was created by the City of Schertz as a means to promote economic development. The EDTF operating plan is to provide structure and guidance to the EDTF in meeting economic development goals. It provides a description of general goals, specific tasks, priorities, and procedures to accompl ish the overall goal of economic development. Section I will establish general goals, policies, and procedures. Section II describes specific tasks. 2. Economic Development Defined. a. How one defines economic development depends on a number of factors that are often mutually exclusive. In addition, there are costs associated with economic development that are often overlooked, but are, in effect, the "price of admission." As a general statement, a municipality must first make a conscious decision that economic development is needed, in some form, clearly recognizing the potential costs. In addition, the perspective must also be that economic development is but a means to a greater end. b. The term economic development is the result of economic activity. Economic activity is the real target. Economic activity means the movement of capital into the City and the economic multiplier that results from that movement of capital. If thinking is centered in terms of the multiplier, the focus should become the "biggest bang for the buck." This does not equate to the idea of return of investment, rather, the net effect that occurs from economic activity. c. Economic activity and the resulting development that occurs must also be focused on the nature of the community lifestyle or "quality of life." The City needs a firm hand on economic development activities to insure the "quality of life" is improved. Commercial interests and the best interests of the community are not always the same. City governmental leaders must have a clear understanding of the effects of economic activity, and make a careful assessment as to whether the net effects are desirable. uncontrollable growth is almost as bad as no growth at all. -1- d. Finally, City government must consider the alternatives of not managing economic development. Lack of growth and uncontrolled growth are the two sides of inaction. For better or worse, change will occur whether change comes from external sources, as in the continuing development of the region and surrounding cities, or internally, as a result of population growth, changing attitudes of citizens, or any other event, natural or otherwise. The point here is that change must be understood, anticipated, and managed to the extent possible. Management of change is essential to insure orderly and productive growth, and the continued improvement of community "quality of life." 3. Goal Definition. a. Goal definition is the key element for any organized activity in that it provides the focus for that activity. In the case of economic development, the goal is: "To increase and stabilize the economic base of City revenues, and provide the flexibility needed to manage growth in concert with the longer term goals of the City." In the simplest terms, economic development increases City revenues without raising taxes. b. The goal is intentionally broad. The design allows for a wide range of more specific objectives, depending on the perceived needs of the City. It is, in effect, a movable target, and can be shifted based on the will, commitment, and resources available. The specific objectives or tasks described in Section II reflect current needs and desires. It is important to note that economic development is a process and not a static event. As the program evolves, changes are inevitable. 4. Changes, Additions, and Deletions to this Plan. a. Since this plan reflects current needs and desires in the short term (1-5 yrs.), changes are expected. Approval for changes, additions, or deletions (for Sec. I) rest solely with the City Council. Changes in Section II are at the discretion of the Chairman, EDTF. b. This level of authority is necessary so that changes in the objectives or the process itself can be integrated with other plans and the overall development of the City. Effective economic development will impact all areas of the community. 5. Annual Review/Revision. The EDTF is required to review all aspects of this plan by August 1 each year. The completed review and resulting revisions (for Sec. I and II) should be a part of the EDTF's budget submission each fiscal year. -2- 6. Organization of the EDTF. Organizations are developed as a means to achieve goals. Good organizations provide a means for breaking down goals into specific tasks. The organization should facilitate moving from general to specific. The key to good organization is simplicity, clear lines of communication and coordination, and the ability to accomplish multiple tasks toward a single goal. It is recognized as some tasks are completed and new tasks assigned, the organized structure may need revision. The organizational structure of the EDTF is a prerogative of the Chairman, within the charter and by-laws of the EDTF. 7. Role of Economic Development Task Force (EDTF) a. As the Task Force evolves, so too will the role of the Task Force. At this stage of development the Task Force is "finding itself", making judgments about direction and methods, learning the terminology and tools at it's disposal. Nonetheless, a series of roles are present and evolving. (1) Policy Maker. The policy function is targeted specifically to economic development, mainly the development of strategies for the various aspects of economic development. Included in this area is a data gathering role. (2) Advisor. The advisory role lS al so directly related to economic development in the sense of advising City Council on the impact of policies generated by internal (to the City) and external entities. (3) Facilitator/Coordinator. Situations or problems develop that are often beyond the scope or expertise of Task Force members. Using personal or professional contacts, individual members may be able to influence outcomes, and provide assistance using those contacts. (4) Action Agency. The EDTF should not be viewed as a passive body. The generic "task" of creating the environment for economic activity requires involvement in a wide range of activities. Economic development can be characterized as a "game" with few rules, highly competitive, with potentially high stakes. Success requires innovation, creativity, persistence, and some measure of risk. A simple definition of the "action" role of the EDTF is "whatever it takes" to promote, develop, and manage economic activity. The only limitations are those defined by legal, moral, and ethical principles, and within the context of improving the "quality of life" for the citizens of Schertz. b. These roles are broadly defined by design. As a new entity, the Task Force must "carve out" its own niche among the many competing activities on the public agenda. -3- 8. Task Descriptions. a. Two kinds of tasks are specified in Section II. The first is an ongoing requirement with no established completion date. The second is a specific action with a definable target and completion date. Ongoing requirements are self-explanatory, and include a named point of contact. In defining the second kind of task, great care must be taken to insure the following: (1) The task can be accomplished. earmarked. Data, if needed, is available preparatory steps have been taken. Any funds needed are - in other words, the (2) The task lS small enough to complete in ninety days or less. (3) The task can be completed by one individual (or small group) . (4) The task must provide a clear indication of the desired outcome. b. The task format (Sec. I, App. the level of detail needed above. somewhat structured, it is not intended 2) is designed to provide While this approach is to be limiting. (1) Structuring tasks will save presentation of a task in written form requires carefully considered. The Task Force also has a of what is to be accomplished, by whom, and why. time. The the task to be clearer picture (2) Task Force policy some level of documentation. tracking progress and allow for knowledge in one or more areas. initiatives and activities require Written task lists allow for the development of a body of c. Tasks will be assigned by the Chairman, EDTF. Development of tasks using the format at Appendix 2 will also be at the discretion of the Chairman. 9. Development of Proposals or Tasks. a. Ideas for economic development come from a wide variety of sources. Each idea requires a review of feasibilities, costs, potential benefits, and a judgment of whether the idea is compatible with overall City plans and goal s. The process of taking ideas and developing them into proposals or tasks is outlined below. The process is divided into two elements since the procedures differ. (1) Externall y Generated Ideas. Externally generated ideas come from two basic sources. The first is from contacts outside the City. Specifically, individuals or representatives of individuals wishing to locate, relocate, establish or expand a -4- commercial enterprise in Schertz. The second is from other governmental agencies looking for a means to improve the local infrastructure, coordinating State or local plans in the area, or development agencies. (a) Proposals from Commercial Interests. All proposals by private commercial interests related to economic development must be provided to the Chairman of the EDTF and the City Manager. These individuals or their representatives will jointly make an initial review to determine the proposal is valid, has merit, and is worthy of action. (In the event the review is negative, the City Manager will call the party involved and advise of the decision.) They will then appoint a single point of contact to work the proposal. The single point of contact will coordinate with all relevant departments and agencies, brief and receive input or comments from the other members of the EDTF, maintain a written summary of actions taken to be included in EDTF files, and provide regular update (no less than monthly) of the status of the project. In the event the project is not successful, it is equally important to know why. Selection of the single point of contact is a critical function. This individual will "carry the ball" for the city of Schertz and must be motivated to that end. (b) Proposals from Government Agencies. Generally, initial contact by government agencies will be through the City Manager or City Staff. The Chairman of the EDTF needs to be aware of these developments to avoid confusion or potential overlap of activities. The City Manager will appoint a single point of contact t~ monitor governmental proposals. The point of contact will insure appropriate coordination with affected departments and agencies. (2) Internally Generated Proposals or Tasks. Ideas for economic development proposals or tasks may also be generated by the EDTF. Proposals internally generated must be reviewed by all members of EDTF for comment. If the proposal has merit, the Chairman will present the proposal to either the City Manager or Council for general evaluation. This initial step is to determine whether to proceed. For example, Council may need to approve funds for further study, or give the go ahead for an in- depth proposal which may require a bond issue or a major budget activity. If the idea is for addition of a task on the task list, the Chairman may do so at his discretion after review and comment by the EDTF. b. Close coordination is an essential element to successfully working a proposal. It is a desirable policy for all proposals, regardless of source, to be reviewed for comment by all members of the EDTF. -5- 10. Meetings, Minutes, Reports, and Other Documentation. a. Meetings and Minutes. The EDTF will meet as prescribed by the bylaws and at the call of the Chairman should circumstances warrant. Minutes will be maintained for each meeting. Copies of minutes will be provided to City Council (through the City Manager), the Planning and Zoning Committee, and the City Planning Director. These minutes are considered public unless meetings are in closed session to protect the public interest. b. Reports. The Chairman will provide status reports on a monthly basis to City Council (through the City Manager) on all open tasks in Section II. Specific reports will be provided Council as necessary. c. other Documentation. The EDTF will maintain documentation on the topics below as a minimum. In addition, a central repository shall be designated by the City Manager which allows ready access to EDTF members. (1) Minutes of meetings (2) Fund disbursements and receipts (3) Demographic data (current and projected) (4) Survey results and analysis (5) Copies of publicly released data of any type (6) History of contacts (commercial) (a) Who was point of contact (b) Nature of proposal (c) Results (7) Status reports on current projects (Including reasons for delays) (8) Other 11. Interrelationship with Other Agencies. Economic Development does not occur in a vacuum. It is likely to affect all areas and activities within the City, as well as the surrounding area. As such, close coordination with a wide range of agencies, inside and outside the City, is needed to insure actions taken by the EDTF remain integrated, or at the very least do not conflict with other activities. In the event conflicts arise that interfere with the function or goals of the EDTF, the City Manager and Council must be advised. Development of close relationships with other agencies is a valuable asset to the City in the sense that members of the EDTF are also goodwill ambassadors for the City. Open and positive relationship can do nothing but help the City of Schertz. In -6- addition, they tend to widen the range of possible contacts for economic development activity. a. City Council. As elected representatives of the citizens of Schertz, the City Council is ultimately responsible for all activities related to the City. It is vital the Council be well informed about the activities of the EDTF. In turn, the EDTF should expect City Council to provide timely guidance and policy direction on issues related to economic development. b. City Manager and staff. As the professional operating agents for the City, the City Manager and Staff also have a need to be informed so as to preclude confusion and potential conflict with ongoing activities. City Staff is also in a position to provide a wide range of valuable information from a legal, practical, and economic standpoint. The City Manager and staff will provide administrative and technical support. c. Planning and Zoning Commission. The activities of the Planning and Zoning Commission and the EDTF must be complimentary. The Planning and Zoning Commission is needed to provide information about zoning and annexation policies, as well as the Comprehensive City Plan. Working closely, the two agencies provide the environment conducive to economic development within the framework of the overall development of the City. d. Local Media (1) Positi ve relations with all forms of is essential. Local publicity is an important economic development in that perceptions are interpretation of events by the media. local media element in molded by (2) The spokespersons for the EDTF are the Chairman and the City Manager. Representatives may be appointed on an issue by issue basis. News releases must be approved by the Chairman and/or the City Manager. e. Local Business. One of the strongest tools for economic development is the positive endorsement of the "business environment" in the community by local businessmen. Their perceptions are often and easily conveyed to businessmen outside the community. EDTF activities must include the development of a positive business environment. f. Local, state and Federal Agencies. Local, State, and Federal agencies present a wide range of opportunities for fostering economic development. Some agencies are organized specifically for economic development purposes (Texas Department of Commerce, San Antonio Department of Employment and Economic Development, etc.). The best interests of the City of Schertz will be served by joining (and contributing) to these agencies. To the extent possible, staff (and where appropriate EDTF -7- members) should interact with these organizations. meetings, conferences, shows, workshops, seminars, events is encouraged. Attendance at and similar g. Citizens of Schertz. The ultimate beneficiary of successful economic development is the citizen. However, economic development activities must be in tune with the perceived or actual needs of this community. Community values and their maintenance or enhancement are the determinative criteria for any activities. Justification for any project must include a careful review to insure community values are considered. h. Others (reserved) 12. Relationship of Economic Development to Comprehensive Plan. a. Economic development that unfavorably alters the fabric of the community is economic development at its worst. The Comprehensive Plan, also known by many other names, is supposed to be the document that describes community development. Community development includes anticipation and development of basic services and infrastructure, zoning and efficient land use, building codes, and all manner of considerations that ref lect community values and desires for the kind of city its citizens can call home. b. Economic development must "fit" and contribute to the pattern of desired community development. The term managed economic development means economic development that accomplishes these ends. 13. Incentives for Economic Development. a. One aspect of economic development is competi tion. Virtually every community in Texas is engaged in some form of economic development, competing for new businesses and expansions outside their jurisdiction. Incentives will be offered, mostly financial incentives. while the merits of offering incentives may be contentious, that they exist is a reality. b. A key function of the EDTF is the incentives, financial or otherwise, as part development policy. Items such as tax waivers, loans, etc., should be considered package. development of of our economic abatement, fee as part of a -8- (1) When financial incentives are considered, a careful assessment of costs and benefits must be made to insure an acceptable balance exists between the two. (2) Financial and other incentives are not to be offered "carte blanche." Each package of incentives will be tailored to meet the needs of the prospect in concert with the benefits to be derived by the City. To this end, EDTF will consider the following factors in determining the value of benefits. For example: (a) Jobs for Schertz citizens (b) Sales tax revenue over time (c) Ad valorem revenue over time (d) Economical and desirable use of space (e) Prestige value (f) Ability to draw other businesses (g) Long-term prospects and stability (including financial stability) of the company 14. Objectives and On-Going Tasks. a. The establishment of objectives for economic development is intended to set the tone and focus for economic development activity and provide direction for the EDTF. As economic development evolves, the direction may change. As tasks are completed, new tasks are added, or outside events take place, objectives may change as well. As such, this is the most critical of the sub-sections and requires annual review and revision by Council. b. Reviewing past and present pol icy reveal s a series of circumstances that tend to inhibit the desirable pace of economic growth. Desirable pace lS affected by the following factors: economic activity commensurate with surrounding areas; staying ahead of demands for increased public services as a result of population growth or other demographical considerations, e. g. annexation; planning for development in such a way as to allow management of growth or change; an overall definable vision of current and future community needs and desires; and finally, a general commitment to managing growth or change with a view reflecting community needs. The speed at which changes occur (whether managed or not) is a direct function of the commitment to manage change. Level of effort is also a factor in terms of resources available. c. An initial general analysis of current hindrances to economic development reveals a list of shortcomings which may appear formidable, but are in fact workable. (See Appendix 1) -9- d. In assessing economic development, past and present, some positives are also noted that can and should be the foundation for future action. (See Appendix 1) e. After careful consideration of community advantage and disadvantage, the following objectives are provided to the EDTF to serve as the focus of Task Force activity. No priorities are established. (1) Increase single family home construction in selected areas of the City of Schertz by 100 new residences per year. (Selected areas of Schertz are derived from the City Plan) . (2) Establish methods of assisting existing local businesses to maintain and increase their level of activity. (3) Establish a detailed strategy to attract new business to Schertz. (a) Marketing (b) Prospecting Techniques (4) Develop proposals for City driven enterprises. f. In addition to the objectives noted above, a series of ongoing tasks are required to support the objectives and general activities of the task force. (1) Data gathering (a) Community Profile (b) Existing Business Profile (c) Catalog of properties for development (includes leased property) (2) Funding of Task Force Activities (3) Incentives for Economic Development -10- Appendix 1 Section 1 Assets and Liabilities Assets. (1) Location of City between two major interstate highways and potential railheads is a major plus. (2) Prior development of industrial parks have set the stage for potentially explosive growth. (3) Careful annexation patterns. (Unfortunately this is also a negative in that an annexation policy for the next five years is not clear.) (4) Viable base of infrastructure (water, sewer, etc.) that is readily expandable, or capacity already exists. (5) Well established base of primary public services. (Police, fire, etc.) (6) Active community involvement in community affairs. (An intangible that effects community spirit.) (7) Average or better school system. available in Schertz.) (Should housing be (8) Proximity of a wide range of leisure and sports activities. (Riverwalk, Spurs, major malls, etc.) (9) Adequate property already zoned for commercial development. (This function needs a careful review.) (10) Tax abatement incentives (Actively under development.) and re-investment Zones. (11) Established activities forum for economic development Liabilities. (1) Lack of a plan or roadmap that establishes priorities and focus. (2) Lack of a current comprehensive City plan that defines the overall vision of where the community is going and how the City will get there. (This is beyond the purview of the EDTF, but an essential element needed for success.) -11- I' . ( 3) provide a Insufficient single family (or other) housing to "market" for additional retail establishments. (4) The City owns virtually no property. This inhibits active promotion of economic development in that initiatives are often stymied by property owners. Ownership, and in turn development, of properties owned by the City could serve as a catalyst or magnet for additional development of surrounding properties. (5) Soft economic base. establishments to provide revenues, and "other revenues", to provide a valorem taxes. Insufficient retail in the form of sales taxes cushion against raising ad (6) Insufficient infrastructure, specifically arterials between I-10 and IH-35, as well as east/west routes. (7) Insufficient professional infrastructure (doctors, dentists, lawyers, CPA's, etc.) driven by a "market" that is too small. Professional infrastructure is a stabilizing function within a community and a draw for families. (8) Lack infrastructure, and Schertz" initiative economic activity. of sufficient residential units which produces the retail, professional also inhibit a "buy "mul tipl ier" needed for (9) General economic downturn pressure on the ad valorem tax rate. can be overcome and avoided.) in the region that has put (This is a condition that (10) Lack of infrastructure Specifically, near I-10. in newly annexed areas. (11) funding. have been Overreliance on Federal and State largesse (This forces alterations in whatever priorities in place, including budgetary activities.) for may (12) Lack of commitment (on the part of prior councils) to economic development, or even to manage change, which puts Schertz behind the "power curve". Commitment in this case is not limited to money. -12- , . . . Appendix 2 Section 1 TASK FORMAT A. Objective supported by task. How task supports objective. B. Specific task description. C. Desired completion date: (May be ongoing) D. Desired Outcome: E. Uses of data collected (if any) F. Task assigned to: G. Funding requirements: (if any) H. Preparatory Steps: (if any) I. Related Tasks (if any) J. Agencies Involved: (Internal, External, Citizens) K. Reporting Requirements: (level of confidentiality) L. Recommendations as a result of task completion (if any) -13-