Recommendation to authorize City Manager, or designee, to execute documents necessary to establish an agreement with the Long Beach Downtown Development Corporation, a non-profit organization located in Long Beach, CA, to provide services and financial support for economic development activities in the City of Long Beach.  (Citywide)
Motion carries. Key. We have item 13. We had a we had a couple of requests, some just doing the items that are up first, item 13/1. Report from economic development. Recommendation to authorize the city manager to establish an agreement with the Long Beach Downtown Development Corporation to provide services and financial support for economic development activities in the city of Long Beach. Citywide. Mr. CHRISLER. Good evening, Mayor, and members of the City Council and I'm very happy to bring this item before you. This will allow the city to partner with the Downtown Development Corporation, which is a501 C3 nonprofit. The purpose of the EDC is to attract new business and investment, as well as to help the city in economic development efforts that may be unfunded. The DDC will also allow us to apply for grants that may only be eligible for 523 organizations. I am also would like to acknowledge Craig Cogen, who is the Executive Director of the deal. The DDC was originally formed as a as a an organization separate from but in partnership with the DOJ. And so Craig has stayed here tonight to answer any questions that you might have about the DDC and its history. So with that, I will answer any questions and happy to respond. Thank you. And let me let me just also just add that we're we want to thank after the deal for the work in kind of launching the development corporation. We there's been a lot of conversations around working with the DBA, the folks in the business, the nonprofit community, and also the Economic Development Commission. In looking at establishing as well the city wide look at economic development from a kind of not a public nonprofit, private, public nonprofit point of view. For those who may not be aware, economic development corporations exist across the country. Almost every major downtown has them. They are incredible economic engines. The closest thing that we have to Long Beach that works here oftentimes is the L.A. EDC, which are all pretty familiar with, which is the L.A. Economic Development Corporation. So that obviously is a economic development corporation that operates across the county. And so this would be this is really the beginning of the formation of of this type of effort locally. And I'll add and one of the things I'm really thankful was staff with Mr. Cogen with the commission is there's really a focus around economic inclusion and making sure that we ensure that that everyone is being included and that we're focused on all workers of all income levels. And I think that's really important to be a focus as well. And so I want to thank all the folks involved. There's a motion and a second count summary, Ranga. Thank you, Mary. And I totally agree with everything you've said. It's an opportunity as well for the philanthropic community to give them another alternative to donate money so that we can work on two major projects. So I'm very pleased to make this motion. Councilman Mongo This is something that I have looked forward to since the day I was elected. I so appreciate the DBA for stepping up and taking leadership on this. I appreciate Mr. Keisler for following through. It has been a long road of getting here. There are so many small business associations that don't have a place to live, and through the M.O. use with this organization, I really see an opportunity to take business development, our business corridor improvement and our investment in the region related to those improvements just to the next level. So thank you so much for your work on this. It is a long time coming and could not have been possible without a heavy lift from many, many committed people. Thank you. Thank you. Council Member Pearce. Thank you. I also would like to congratulate the economic development team and the DBA for your work. I actually was looking forward to hearing from Mr. Cogen on your vision, what you guys have done, and just give a little bit more context to what's in front of us today. Could you do that while doing public comment or don't do it right now? We could do it now. I think that would be sure. Mr. Cogen, you want to give us an update? Mr. Mayor, members of the city council, Craig Koji with the downtown Long Beach Alliance as well as with the Downtown Development Corporation. The DDC was created in 2011, 2012, about the same time that the redevelopment agency was dissolved. And this was created to really pick up the pieces of the downtown project area when it was scheduled to be terminated in June of 2017. Obviously the state had different ideas at the time and so the entire redevelopment agency was dissolved. Statewide, the development corporation was in a position to help business as well as community corridors to eliminate blight. This is the goal and the mission of Development Corporation. It is, as Councilmember Turanga mentioned, a charitable organization. It is citywide. It has no boundaries. So that's the beauty about this organization. And it doesn't have the legal boundaries that, say, the DOJ has with its assessment district. So we've been reaching out to different corridors throughout the city. We are going through a revisioning and reevaluation and repositioning process as we speak. It will no, it won't be called the Downtown Development Corporation. We named that in 2012 because of the as a placeholder and certainly it served its purpose. And now obviously it's expanding its mission and expanding its boundaries to be able to serve on a citywide basis. So we'll be working with different corridors, working with different organizations, as well as with the Economic Development Corporation or Economic Development Commission, as well as DARPA, to further its causes and its mission. Thank you. Thank you. So help Pierce. Thank you. I just thought the context and the history was a little bit helpful and wanted to ask one question on. Sorry. It might not be you might be staff. How do other businesses that are not in business corridors and residents find out about this organization? You guys think we're just going to vote real fast? I'm sorry. COUNCILMEMBER Yeah, absolutely. So. So that's one of the things that we're establishing with this agreement. One of the things that is important when you have a city government private entity, whether it's a private nonprofit or otherwise, is that, you know, we can't we need a partnership agreement to be able to promote each other. And so the beauty of this is that now that this this nonprofit vehicle will be available to help, you know, fundraise on behalf of these efforts to work with small businesses. And they have flexibility to do some things that the city might not be able to. But this agreement will also allow us to advertise what the DDC is doing and direct small businesses or associations or donors or grantors to the DDC to work out agreements. And so we'll be advertising and promoting the great work they're doing, just as they will be advertising and promoting the great work that the city is doing. Great. Thank you so much. And I just want to applaud the leadership. You guys have helped us. We're about to launch our Arts Park work. I know the loop has been something that you guys are revisioning right now. And so I think it's really exciting that the entire city is going to have the opportunity to participate in revitalizing. So congratulations. Thank you, Councilman Austin. Thank you very much. This is a very intriguing idea. I was recently with our board with the BC BIA, and I know they are looking at doing something very similar. I did have some questions regarding the the autonomy. Are they completely or is this organization completely autonomous from the Adobe? And I guess that would be from Steph, Yes. Councilmember Yes. So these are these are two separate entities. So in terms of their their TAC status, they're they're formed as, as different entities and they stand alone. There is separation. And there are a number of things that you'll see in the agreement that we establish that ensure that there's there's not a conflict of interest. There's also different activities that they can engage in. As Mr. Cogen was mentioning, there's certain aspects of the 501c6 the bid or the deal that has restrictions in terms of what it can engage in the members. It serves the boundaries that it's required to stay within. So yeah, these entities are different. And I think that, as Mr. Cogen said, now, that now that the DDC is looking at the citywide mission and how to engage with city wide economic development, there will be a revisioning and how, you know, that board is structured in that that charter changes is part of this next step. And so when we when I read that we are or this this this board or DDC will be have a avoid a conflict of interest when raising funds that advance economic opportunities for workers, investors and entrepreneurs throughout the city. What do you envision and what type how do you envision this this organization helping workers and investors and entrepreneurs and charitable means? Oh, absolutely. So so on one. One example of that would be going out to work with a foundation who may grant funds to a five or 23 or nonprofit agency. In the past, the city, you know, couldn't apply for those funds. So the DDC may apply for funds on on on our behalf that could help with anything ranging from, you know, entrepreneurial support programs to, you know, fundraising for a specific program, maybe loans or grants to two local small businesses. The other thing that that the DDC can do is when we have maybe a new business who's building a project in in the city in the past, you know, the question would be, hey, how can we help businesses on the corridor around us if they're not part of a business improvement district or, you know, there's there's not a place that now these companies can give funds and work in agreement with the DDC to then implement special events, maybe facade improvements or some other economic development projects in the neighborhood that surrounds them and that benefits that that that corporate anchor. So it gives them an option that, you know, we haven't had previously and ultimately will benefit the city both directly and indirectly. And because there is a partnership with the city. I just have to ask because I know we have another item coming up a little bit later regarding audits of the bids. Would this nonprofit be subject to audit? Councilmember So in in the agreement, it actually has a section that talks about part of the terms and conditions is that any, any activities related to the city that the DDC engages in, that they will maintain records subject to audit not only during the term of the agreement, but up to five years after the agreement expires. So, yes, those kind of controls are in place. We actually have this a similar set of controls in place with other nonprofits, whether it's the police foundation, the Long Beach. Partners for parks in Long Beach Care. So it's a similar arrangement where we have, you know, the ability, if with reasonable time to ask the DDC to to share all information and financial records related to activities that that involve the city. Wonderful. Thank you very much. Thank you very much, Richardson. Thanks, Mr. Mayor. Just wanted to acknowledge, Craig, we you know, we've had these conversations a long time. And I know that this has been a vision of yours for a long time to get the Economic Development Corporation, the Community Involvement Corporation, off the ground. And and I'm not concerned that it came out of downtown. Frankly, you were the most prepared business district to start this. And you were ahead. And you've done what you've done is help to bring other areas of town on board and to reap the benefits of what you've been able to do. I want to thank you for recently attending the Roundtable on Economic Inclusion for everyone in roundtable, and there were a lot of good conversations. And, you know, we're working on the Kiva stuff. So I know that you received a presentation from one of our from our facilitator to Nuer on that. I want to thank you for for expressing interest and coming on board as a as a trustee to get this program off the ground. John, so little question, are they going to be an official trustee or what is this action going to help prepare the EDC to to play that role? Or what's going to happen with Kiva? What's the relationship there? Yeah. Vice Mayor So the in terms of how our trustees function with Kiva program, there's a couple of roles that the DDC can play. The presentation we received the other day was for the Economic Development Committee of the DOJ, which you're referring to, and ultimately what organizations can do in the city in which I believe they'll be considering at their next board meeting is a recommendation to become a trustee. And what that means is that an organization or an association or even an individual in the city of Long Beach can vouch for individual borrowers. So they would meet with them. They would say, You know what, I met this individual. They are who they say they are. They're going to be using these funds to help their small business. And that helps to build credibility for residents of Long Beach to then become lenders for the Kiva microfinance program. So this is a perfect example of being able to partner with another organization that can both serve as a trustee and potentially even apply for grants or fundraise on behalf of these kinds of programs that help our micro-entrepreneurs. Great. Thanks. Any other public comment? I know that Mr. Guzman already spoke CNN. Then, please. Grace. You are quite. Supernatural. Since entrepreneurs are yeses. Okay, thank you very much. Now we're doing item number seven and then item number six. And then item number ten.