TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to enter into an agreement with the Long Beach Economic Partnership, a non-profit organization of Long Beach, CA, to provide services and financial support for economic development activities in the City of Long Beach;
Authorize City Manager, or designee, to execute all documents necessary to receive and expend one-time donation funding from the Long Beach Economic Partnership in the amount of $18,500, for capital improvements to Admiral Kidd Park; and
Increase appropriations in the General Fund Group in the Parks, Recreation and Marine Department by $18,500, offset by donation revenue. (Citywide)
DISCUSSION
At its meeting on January 16, 2018, the City Council authorized an agreement with the Downtown Development Corporation (DDC) to provide services and financial support for economic development activities in the City of Long Beach (City). In July 2019, the DDC changed its name to the Long Beach Economic Partnership (LBEP) and elected a new Board of Directors. The LBEP is a registered non-profit public benefit corporation formed to: (a) help attract investment to Long Beach that creates jobs, expands existing businesses, recruits new businesses, and promotes development; (b) market and brand the City to workers, investors, and entrepreneurs; (c) invest in the improvement of commercial corridors throughout Long Beach to enhance the built environment and economic environment; and (d) respond to unforeseen economic opportunities as they present themselves.
A formal agreement between the LBEP and the City is requested to allow the LBEP to solicit donations, apply for grants, and reimburse the City for unbudgeted programs and services that advance economic development goals. Through its agreement with the City, the LBEP Board of Directors will review the activities of the LBEP, approve the distribution of funds, and maintain a strict ethic of independence to avoid conflict of interest when raising funds that advance economic opportunities for workers, investors, and entrepreneurs throughout Long Beach.
The LBEP is organized and operated exclusively for charitable and educational purposes within the meaning of section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provisions of any future United States Internal Revenue Law). No part of the income or assets of the LBEP benefit any of its directors, trustees, officers, members, or any private persons, except that LBEP may pay reasonable compensation for services rendered and to make payments and distributions in furtherance of its purpose. No substantial part of the activities of the LBEP may consist of lobbying or propaganda, or otherwise attempt to influence legislation, or any political campaign on behalf of any candidate for public office.
In October 2019, the LBEP Board of Directors approved one-time funding totaling $18,500 for capital improvements to Admiral Kidd Park. Improvements will include resurfacing of basketball courts, replacing existing high-pressure sodium lights with L.E.D. flood lights, and upgrading lighting to L.E.D. in one parking lot. These improvements are a part of a larger Santa Fe Corridor Improvement Project, led by the LBEP that prioritizes investments that enhance the built environment, quality of life, and business environment along Santa Fe Avenue.
This matter was reviewed by Deputy City Richard F. Anthony on November 25, 2019 and by Budget Management Officer Rhutu Amin Gharib on November 26, 2019.
TIMING CONSIDERATIONS
City Council action is requested on December 17, 2019, to allow the LBEP to begin acquiring financial and material resources for economic development projects on behalf of the City.
FISCAL IMPACT
The City will have no financial obligations to the LBEP. Under this agreement, the LBEP will be able to solicit donations, apply for grants, and reimburse the City for unbudgeted programs and services that advance economic development goals. The total amount of monetary and in-kind resources from the LBEP efforts that will benefit the City are unknown at this time. Of the total amount of financial support received on behalf of the City, LBEP will retain a portion of the contributions to offset its administrative costs. Administrative costs will be negotiated by the LBEP prior to the acceptance of donations on behalf of the City. LBEP administrative costs include, but are not limited to, fees for tax filing, annual audits, administrative staffing, and material support.
While future funding is unknown, LBEP has informed the City that it will provide funding up to $18,500 for Admiral Kidd Park capital improvements. Therefore, an appropriation increase totaling $18,500, offset by donation revenues, is requested in the General Fund Group in the Parks, Recreation and Marine Department. No match or in-kind services mandate is required. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
ACTING CITY MANAGER