Item 2.a.: UPDATED EDD+Consultant Presentation_Economic Development Entity — original pdf

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South Central Waterfront Briefing Austin Economic Development Corporation (AEDC) Task 3: Presentation on Organizational Development Plan Matthew Kwatinetz Q Partners April 2020 Agenda  Scope for Creating a new Economic Development Organization  Update: Austin Economic Development Corporation  Proposal: South Central Waterfront  Next Steps 2 Scope: Creating an EDO for Austin 3 Timeline and Scope Review: SOW  Task 1: Engagement Kick-off and Team Formation (Dec) Review of Materials Interviews  Task 2: Research and Benchmarking (Dec-Jan) Expanded precedent document review and broad research Benchmarks nationally and in Texas  Task 3: Initial Proposal to Staff, Stakeholders and Leadership (March) Initial Proposal (“Straw Person”) to kick-off discussion (this presentation) Refined Proposal based on Staff, Council Member and Project Team feedback  Task 4: Presentation and Recommendations (April/May)       4 Task 1: Kick-Off Meetings (40+ interviews) Most meetings were conducted Dec 9, 10, and 11 in Austin’s City Hall. Council member meetings were delayed due to LDC conversations and conducted via phone in January.     City of Austin Elected Officials and/or Policy Staff: CM Tovo, CM Alter, CM Pool, CM Kitchen, CM Flannigan, CM Casar, Mayor Pro Tem Garza, Mayor Adler City of Austin Department Staff: City Manager, Asst. CM; Economic Development Department; EDD Cultural Arts Division; Redevelopment Division; EDD Strategy & Int’l; EDD Music & Entertainment Division; Planning and Project Group EDD; COA Planning; Neighborhood Housing & Community Development (AHCD) and AHFC; Real Estate & Finance; Law Department Inter-Governmental: County Commissioner Travillion, Office of the Judge of Travis County, County Commissioner Shea, University of Texas, Capital Metro, CAMPO, Austin Community College, Austin Independent School District, State Senator Watson, Texas Council on Economic Development, City of San Antonio Stakeholders and Anchors: Capital City Innovation, Downtown Austin Alliance, Red River Cultural District, Austin Cultural Alliance, Greater Austin Chamber of Commerce, Urban Land Institute, Perkins+Will, Austin Community Foundation, Affordable Central Texas, Housing Authority of the City of Austin (”HACA”) with HACA, AAHC, NHCD, AHFC Note: David Colligan, Interim Assistant Director of EDD, was in all meetings 5 Task 2 & Task 3  Precedent document review and broad research (Dec – Feb)  Benchmarks Nationally & Peer Cities (Jan – Feb)  Texas Case Studies and Texas Law Review (Jan – Feb)  Initial “Straw Person” Briefings with COA and Council (Feb-Mar)  Follow-up Stakeholder Meetings (Feb – Mar)  EDD, CMO, Council and Mayoral Briefings (Mar – April)  Stakeholder Proposals (Now) 6 Austin Economic Development Corporation 7 Organizational Structure: Powers & Controls  Austin Economic Development Corporation  A new Local Government Corporationwith federal charitable status - 501(c)3 A board appointed by and controlled by City Council (see next slide) Can accept charitable donations Can manage private investment dollars Can own and operate real estate  Austin Industrial Development Corporation  An existing Development Corporationformed by Council in 2015 as a financing conduit Development Corporation authorized by Section 501 (TX LGC) Board is composed of the City Council, who must approve any financing The CFO of AEDC serves as the President of AIDC  City of Austin Economic Development Department Oversight and management of AEDC Director of EDD should serve as the initial Interim President of AEDC 8          Organizational Structure (3): Org Chart Purple roles can be initially outsourced. Orange roles not compensated by the organization itself. City of Austin Board of Directors President & CEO Admin Chief Financial Officer General Counsel Chief Operating Officer Chief of Staff (GovCo & PR) IIF Manager Budget Analyst Transactions Manager Asset Management Planner 9 Three Year Staffing Up Plan Below, yellow highlights the first year each position is paid in the organization. After the first year of full employment, 5% raises assumed. A “1” indicates 100%, Full-Time, exempt employment. A “0.5” indicates Half- Time, exempt employment. Additional Notes: In the first year, the CEO, CFO and COS all will be temporarily filled by current full time City of Austin employees who will retain their existing jobs and serve as interim heads of those roles with minimal responsibilities. The primary work will be done by the IIF Manager, Budget Analyst and Executive Assistant with the help of an interim COO that could be a transferred COA employee or consultant. 10 Proposed Projects Initial List  Major Projects South Central Waterfront Huston-Tillotson District Planning Cultural Trust International Investment Fund  Ongoing City-Wide Projects Transaction support on P3 negotiations Public Owned Sites Pipeline           Includes support of Affordable Housing and Homelessness pipeline Includes support of inclusive growth around TODs, as applicable Asset Management on public owned sites District (and emerging PID) support  Other Priority Projects as Directed by Council  COVID-19 Response and Recovery (potential) 11 South Central Waterfront Proposal 12 South Central Waterfront Manage P3 Negotiations, Regulating Plan and TIF/TIRZ Multiple South Central Waterfront plans have called for the creation of a dedicated entity to manage the implementation of the plan and serve as a steward for the project over the next 20 years. This is the perfect “anchor” project for the EDO. Similar to the Navy Yard in Philadelphia, the Beltline in Atlanta and the 42nd Street Project in NYC. 13 South Central Waterfront: March Tour Tour with COA Departments and EDO Consultant 14 South Central Waterfront Proposal: AEDC as LGC/Lead Agency Contemplated in Vision Framework  Lead Agency  Support SCWAB proposed district management tools  Coordinate strategic capital investments (including 2018 bonds)  Coordinate affordable housing plan with partner agencies  Push forward the adoption of the regulating plan for entire district  Financial tools & funding options Increased entitlements to landowners   Public Improvement Districts (PIDs): Negotiation with DAA  Transfer of Development Rights (TDRs)  Lead the adoption of TIF district and management  Negotiation of specific private-led P3 deals  Statesman  One Texas Center RFP  Trail Funding, Public realm funding and O&M Note: Proposed tasks are quoted from the South Central Waterfront Vision Framework Plan (2016) page 14. 15 Regulating Plan Expansion and Adoption Task 1 16 Establishment of TIF District Task 2 17 Statesman Site Negotiation Support Task 3 18 Trail & Texas School for the Deaf Task 4 19 One Texas Center RFP & Management Task 5 20 South Central Waterfront: Resources Needed Funding and Staffing  Funding  TIF Management  Potential PID contribution from DAA  Contract for start-up services from City of Austin  Developer fees (including bonus and transaction fees)  Bond fees for managing capital projects  Asset Management fees (One Texas Center and any public land)  Full Time Employee for SCW  Planning, negotiations and transaction expertise  District experience  EDO Support: Executive, CFO, Transactions, Analyst  COA Support: NHCD, Planning, Parks, EDD  Partners: SCWAB, DAA, TSD, Texas Facilities Commission, Trail Foundation, CapMetro…to start! 21 South Central Waterfront Immediate Next Steps  Review existing studies and emerging work (including EcoNW)  Following up on meetings with EcoNW, MAS  Negotiate relationship with COA, SCWAB, and DAA  Obtain contract for services for COA: Regulating plan, TIF  Verify Regulating plan and get approvals from COA Council  Establish TIF  Identify affordable housing strategy Identify affordable commercial strategy   Create 10 year capital plan  Include streetscape, sustainability and parks projects  Site Negotiations Planning 22 Next Steps 23 Next Steps: Scope Review of Materials Interviews  Task 1: Engagement Kick-off and Team Formation (Dec)  Task 2: Research and Benchmarking (Dec-Jan) Expanded precedent document review and broad research Benchmarks nationally and in Texas  Task 3: Initial Proposal to Staff, Stakeholders and Leadership (March) Initial Proposal (“Straw Person”) to kick-off discussion (this presentation) Refined Proposal based on Staff, Council Member and Project Team feedback  Task 4: Presentation and Recommendations (April/May)       24 AEDC can be started as quickly as Council Desires Call to Action: Request Council to Expedite AEDC for SCW Support  A vote of Council would establish the entity.  Funding would need to be allocated for staff.  An immediate call for donations could go out. Applications for government monies could begin immediately, including as pass-through for local businesses and non-profits through the CARE Act and Federal Reserve.  Experienced staffing would need to be allocated as noted in the budget and staffing slides herein.  A new EDO could immediately begin work on COVID response  A new EDO could immediately begin work on SCW Implementation. 25 Questions 26