COUNTY ADMINISTRATION OFFICE - R ESPINOSA

Approve (1) appropriation from non-departmental fund totaling $50,000, for (2) MOU with the Chamber of Commerce Foundation in the amount of $35,750.00, (3) delegation of authority to execute contract with Cal-Coastal SBDC for $5,000.00, and (4) various organizational memberships fees totaling $9,250.00 all promoting local economy to add to the existing Economic Development Division of $100,000 for Economic Development Corporation MOU for FY 21/22. 
SBC FILE NUMBER: 865

Background:

Supporting economic development in the County of San Benito assist all business to thrive. Economic Development is the creation of wealth from which the community benefits, growing the economy and enhancing the prosperity and quality of life for all residents. 

 Economic development helps the community by:

• Increasing Tax Base, the additional revenue provided by economic development supports, maintains and improves local infrastructure, such as roads, parks, libraries, and emergency medical services.
• Economic Diversification, a diversified economic base, helps expand the local economy and reduces vulnerability to a single business sector.
• Increased Quality of Life, more local tax dollars, and jobs raise the economic tide for the entire community, including the overall standard of living of the residents.

During the budget process for FY 21-22, the board of supervisors funded $100,000 for economic development. On September 24, 2019, the Board of Supervisors executed a 5-year MOU with Economic Development Corporation (EDC) in the amount of $100,000 for a term of five years. 

Designation of total of $50,000 from non-department expenses for MOU with the Chamber of Commerce Foundation for $35,750.00 promoting tourism and economic development, and agreement with Cal-Coastal SBDC for $5,000.00 to provide business workshops to help the local business recover and a total of $9,250.00 for membership dues. 

During the FY 20/21 budget hearings, the Board of Supervisors allocated funding for Economic Development in the amount of $100,000 within the Economic Development Division. The remaining $50,000 will be appropriated from the non-departmental expense division to support economic development. 

Over the past years, the County of San Benito has supported Economic development through organizational memberships and partnerships with our local business support organizations. 

In fiscal year 19/20, the Economic Development funds were allocated to the following organizations:

In fiscal year 20/21 the Economic Development funds were allocated to the following organizations:

There is a small modification from prior year which includes an MOU with the San Benito County Chamber of Commerce Foundation (for Economic Development/ Tourism) for a proposed three-year term. Staff has reviewed the various options for funding and recommend the following the same allocations as the prior years allocation:

Monterey County Business Council membership is an annual investment of $2000. This organization focuses on the following key issues: workforce development, economic development, and advocacy.  

Monterey Bay Economic Partnership (MBEP) is a regional nonprofit membership organization consisting of public, private, and civic entities located throughout the counties of Monterey, San Benito, and Santa Cruz. The annual investment of $5000 is a membership fee.

California Association for Local Economic Development is the statewide professional economic development organization dedicated to advancing its members' ability to achieve excellence in delivering economic development services to their communities and business clients. CALED's membership consists of public and private organizations and individuals involved in economic development: the business of creating and retaining jobs. The membership of $750 includes the County and four (4) associates.

CalOZ's work supports the Opportunity Zone landscape and has a network of leaders and influencers across California, Washington, DC, and the country. Members access a platform to convene, align and mobilize support for competitive Opportunity Zones in California. The annual membership cost is $1000 annually.

The San Benito County Chambers of Commerce works with businesses, community leaders, and local government in San Benito County. Membership investment for the chamber of commerce is $245 annually per department. County Administration and Integrated Waste are current members. 

Cal Coastal SBCD provides support for Small businesses. They currently offer free On-Demand Webinars for small businesses at: https://calcoastalsbdc.com/webinars Cal Coastal can tailor workshops that meet the need for San Benito County small businesses the agreement would include conducting four workshops. 

San Benito County Chamber of Commerce Foundation MOU for Economic Development/ Tourism will support tourism and economic development in san Benito County. They will coordinate a variety of community events to include but not be limited to the Discovery Classic Bike Ride, Food and Wine Experience events, Farmer's Market Booth, Savor San Benito County, local festivals/rallies, and local tours. The proposed MOU is a three-year term subject to appropriations of funding to be appropriated during the annual budget cycle and approved by the Board of Supervisors.

San Benito County Economic Development Corporation promotes economic development through business attraction, retention and supporting opportunities to enhance economic development. On September 24, 2019 the Board of Supervisors executed a 5-year MOU with Economic Development Corporation (EDC) in the amount of $100,000 for a term of five years.

Conclusion:

 Consider continuing to pay membership dues to the various organizations as listed in the table above. To continue the partnership with Cal-Coastal SBDC to provide training for small businesses and provide funding to the San Benito County Chamber of Commerce Foundation for Economic Development and tourism through a three-year memorandum of understanding.