2018 Economic Development Advisory Board Minutes

Regular Meetings

January 17, 2018

April 18, 2018

August 1, 2018

October 17, 2018

Chandler • Arizona

These minutes are fully searchable within this year by using the “Find Feature”.

MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY BOARD OF THE CITY OF CHANDLER, ARIZONA, Wednesday, January 17, 2018, held at Chandler City Hall, 175 S. Arizona Ave., Chandler, Arizona.

Board Present:

Board Absent:

Others Present:

1. Call to Order/Roll Call

Ed Hines, Chairman Lloyd Harrell, Vice-Chairman Micah Miranda, Secretary (Economic Development Director) Jonvieve Bryant, Boardmember David Carroll, Boardmember Scott Friedman, Boardmember Steve Greenhalgh, Boardmember Terri Kimble, Ex-Officio Terry Locke, Boardmember David Moss, Boardmember Ryan Nouis, Boardmember Andrew Weingartner, Boardmember

Todd Czaplewski, Boardmember Todd Hardy, Boardmember Larissa Spraker, Boardmember John Paul Villarreal, Boardmember

Kevin Hartke, Councilmember Terry Roe, Councilmember Sam Huang, Councilmember Nachie Marquez, Assistant City Manager Matthew Earl Jones, Arizona Commerce Authority - Director of

Office of Film & Digital Media Robyn LaFleur, Dignity Health - Director of Strategy &

Business Development Ryan Peters, Intergovernmental Affairs Coordinator James Smith, Economic Development Innovation Manager Kim Moyers, Downtown Redevelopment Manager Kimberly Janes, Tourism Development Coordinator Michael Winer, Economic Development Specialist Ryan Kaup, Economic Development Specialist Odetta Moore, Economic Development Research Assistant Alexa Martin, City of Chandler Intern

2.

Mr. Hines called the meeting to order at 8:37 a.m.

Approval of Minutes

a) Mr. Harrell made a motion to approve the minutes from the October 18, 2017 meeting, motion seconded by Mr. Locke. Minutes approved unanimously.

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3. Unscheduled Public Appearances

None

4. Scheduled Public Appearances

None

5. Briefing Items

a) Mr. Hines introduced Dominic Papa with the Arizona Institute for Digital Progress (AZIDP).

Mr. Papa stated that AZIDP is a non-profit that was created two years ago to encourage Smart City initiatives in Arizona. Since that time, AZIDP has collaborated with local companies, cities, regional organizations, and state agencies.

Mr. Papa stated that digital disruption is accelerating and impacting cities more and more. Additionally, cities that are not preparing for these changes will be missing opportunities to take advantage of these technologies and foster economic development.

Mr. Papa stated that one of the advantages of the Phoenix region is that there are multiple large cities adjacent to each other, which allows Smart City initiatives to grow quickly if the municipalities work together. To this end, AZIDP has been working with the Greater Phoenix Economic Council (GPEC) to launch a program called the "Smart and Connected Region." The Smart and Connected Region aims to accelerate Smart City initiatives through communication and collaboration among the region's cities.

Mr. Miranda asked about the type of Smart City challenges that cities are trying to solve. Mr. Papa stated there are a myriad of different problems. One example in the City of Phoenix was the struggle to reroute their dump trucks efficiently and they have implemented new technologies that save expenditures through better logistics. A second example is that cities are facing challenges with leaks in their water pipes and there are new technologies that monitor this problem. A third example is high energy costs within government buildings and there are new technologies that are able to save money by adjusting heat and cooling usage throughout the day.

Mr. Papa stated that the sandbox model is a Smart City strategy that AZIDP is encouraging for cities. A sandbox district is a defined area of the city where regulations are loosened to allow industry to experiment with new Smart City initiatives. The goal is to encourage technology companies to locate within cities that have implemented sandbox districts.

Mr. Papa stated that it is important for each city to develop their Smart City initiatives based on the strengths of their local area. Each city should have a different focus and the existence of a strong technology base in Chandler bodes well for the opportunities in this community.

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Mr. Smith asked ifthere were any regional initiatives helping to close the digital divide. Mr. Papa stated that curriculum is going digital and many lower income students do not have internet at home to access resources for their homework. AZIDP has started an initiative called "Tech Goes Home" that is partnering with internet service providers to sell lower-cost internet to low income households and to also provide $50 laptops to these families.

Ms. Kimble stated that fiber infrastructure at new commercial buildings is important to companies when they build out shell spaces. Mr. Papa stated the modernization of infrastructure is a big issue facing cities today and there are some unique public-private partnerships being developed to help fund this infrastructure.

Mr. Miranda stated that the City's Economic Development Division is devoting more resources to Smart City initiatives and Mr. Smith will be spending more time in this area. He stated that the City of Chandler sees a lot of potential in the Smart City movement and is proactively working to be at the forefront of these new technologies. Mr. Harrell stated that he is encouraged to see that the City of Chandler is having the Economic Development Division lead these Smart City initiatives, which is forward thinking and proactive.

Councilmember Hartke stated that he serves on the Maricopa Association of Government's Economic Development Committee and there was a Councilmember from another city that was not aware of the loT acronym. Councilmember Hartke stated that this is a common term within Chandler and he is excited that the City of Chandler is investing in Smart City initiatives.

Mr. Hines thanked Mr. Papa.

b) Mr. Hines introduced Matthew Earl Jones with the Arizona Office of Film & Digital Media.

Mr. Jones stated that the Arizona Office of Film & Digital Media is the oldest film office in the country. However, in 2010 the tax credit that provided funding for the film office was eliminated and the film office was closed for six years.

Mr. Jones stated that he was glad to report that the Arizona Commerce Authority recently designated film and digital media as a target industry for Arizona. Since the film office was reinitiated, there have been nearly 70 movies filmed in Arizona.

Mr. Jones stated that the film office is proactively reaching out to cities and towns across Arizona to discuss film and digital media opportunities that exist for these communities.

Mr. Jones stated that the film office has a statewide database on their website where real estate sites can be registered for film makers to search. These sites can be uploaded for free and the film office will be actively promoting this database.

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Mr. Miranda asked about the top inquiries that film makers have searched for in the database. Mr. Jones stated that this information has not been compiled yet, but film makers considering Arizona are typically searching for western towns, historic areas, and expansive landscapes. However, the goal of this database is to also highlight other areas of the state that many people are not familiar with.

Mr. Jones stated that it is important for Arizona to know the strengths of our film market and use targeted efforts to attract these type of films. For example, he stated that Arizona's strength is for movies that spend $10 million or less. Furthermore, he stated that smaller-budget movies spend a higher proportion of their budget on local crew, hotels, restaurants, and rental cars.

Mr. Jones stated that another service that the film office provides is the ability to use state roads and state parks for free. Additionally, the film office has started working to develop a single point-of-contact in different parts of Arizona who are local experts that can assist film makers with finding the right location to film.

Mr. Hines thanked Mr. Jones.

c) Mr. Hines introduced Micah Miranda.

Mr. Miranda stated that the City went through the process of developing a new Tourism Strategic Plan last summer. One of the deliverables suggested from this strategic plan was an update of the Tourism marketing materials.

Following this suggestion, Mr. Miranda stated that the City engaged with Sandoval Design, a Chandler-based company. Sandoval has been tasked with developing a cohesive marketing brand. The focus of this new marketing brand is to reinforce the City's brand position as the Innovation and Technology Hub of the Southwest.

Mr. Miranda stated that hoteliers continue to point to Chandler's employment growth as the reason for more hotel development. While Chandler is not a typical tourist destination, the City's Tourism office has been working to increase Chandler's brand for leisure travel. Examples of this include those who stay in Chandler to take advantage of the many tourist destinations throughout Arizona. Secondly, the Tourism Office has been working to attract more meetings and events.

Mr. Miranda stated that the goal of these new marketing efforts is to unify the City's Tourism messaging and project it outward. One spinoff effect that the City is hoping to gain from this marketing is with regards to business attraction. If the City can put a seed in the ear of travelers visiting Chandler that the City is an Innovation and Technology Hub, then there is the possibility that some of these travelers may consider relocating their business to Chandler.

Mr. Miranda stated that the goal is to finish marketing materials this summer and staff will plan to present them to the board at a future meeting.

Mr. Harrell stated that the board had a discussion a year and a half ago regarding the strong occupancy numbers at Chandler hotels during the week, but the drop

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off that occurs on the weekends. Furthermore, the challenge was that the City does not have the facilities to attract events on the weekend. Mr. Harrell stated that he believes there may be an opportunity for the hotels to join a public-private partnership to help pay for some of these meeting and event venues. Mr. Miranda stated that weekend occupancy was identified in the Tourism Strategic Plan and this is an area that the City continues to explore. Meanwhile, the initial goal is to focus on low-hanging fruit such as the tennis center, races using our existing street infrastructure, and STEM events in different venues throughout the city.

Mr. Hines thanked Mr. Miranda.

6. Action Items

a) None

7. Advisoi:y Boardmember Comments

Mr. Hines stated that Aerozone's second facility received its final inspection yesterday and the building should be coming online in the next 30 to 45 days. Mr. Hines stated that the City of Chandler was very helpful throughout the development process.

Ms. Moore stated that Science Saturday is taking place on February 17th from 10:00 a.m. until 3:00 p.m in Downtown Chandler. There will be a new component this year with six awards of $500 each that will be provided to school science fair projects.

8. Next Meeting

Mr. Hines announced the next meeting was scheduled for April 18, 2018.

9. Adjournment

Mr. Hines adjourned the meeting at 9:53 a.m.

C Submitted,

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MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY BOARD OF THE CITY OF CHANDLER, ARIZONA, Wednesday, April 18, 2018, held at Chandler City Hall, 175 S. Arizona Ave., Chandler, Arizona.

Board Present: Ed Hines, Chairman Lloyd Harrell, Vice-Chairman Micah Miranda, Secretary (Economic Development Director) Jonvieve Bryant, Boardmember

Board Absent:

Others Present:

I. Call to Order/Roll Call

David Carroll, Boardmember Todd Czaplewski, Boardmember Steve Greenhalgh, Boardmember Terri Kimble, Ex-Officio Terry Locke, Boardmember David Moss, Boardmember Ryan Nouis, Boardmember Larissa Spraker, Boardmember John Paul Villarreal, Boardmember

Scott Friedman, Boardmember Andrew Weingartner, Boardmember

Terry Roe, Councilmember Marsha Reed, City Manager Nachie Marquez, Assistant City Manager Joshua H. Wright, Assistant City Manager Ryan Peters, Intergovernmental Affairs Coordinator Timothy Papandreou, Strategic Partnerships - Waymo Kathryn Belous, Pipeline AZ Katherine Pappas, Pipeline AZ James Smith, Economic Development Innovation Manager Kimberly Janes, Tourism Development Coordinator Ryan Kaup, Economic Development Specialist Odetta Moore, Economic Development Research Assistant

Mr. Hines called the meeting to order at 8:35 a.m.

2. Approval of Minutes

a) Mr. Harrell made a motion to approve the minutes from the January 17, 2018 meeting, motion seconded by Mr. Carroll. Minutes approved unanimously.

3. Unscheduled Public Appearances

None

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4. Scheduled Public Appearances

None

5. Briefing Items

a) Mr. Hines introduced Katherine Pappas with the Partnership for Economic Innovation (PEI) to speak about Pipeline AZ.

Ms. Pappas stated that Pipeline AZ - a workforce development tool that connects people with jobs - recently went live. The goal of Pipeline AZ is to connect people with jobs. She stated that Metro Phoenix is the first region in the United States to develop this type of technology solution.

Ms. Pappas stated that the region is not alone when it comes to challenges surrounding workforce availability for employers. Factors causing these challenges include employee skillset requirements that are changing rapidly, the aging population exiting the workforce in high numbers, and new types of jobs being posted every day.

Ms. Pappas stated that every industry is facing this problem in one way or another, but it is exacerbated by the fragmented talent acquisition resources available to employers. This includes a long list of different websites that post jobs and job seekers who are searching for opportunities in multiple areas.

Ms. Pappas stated that Pipeline AZ is much more than a job board. One of these differentiators is automated matching that connects job seekers. Additionally, the tool connects employees with fast-growing industries that they may not be a part of now, but for which they have skillsets that may apply to these industries.

Ms. Pappas stated that Pipeline AZ's initial launch will take place throughout Spring 2018, with a full media campaign taking place during Summer 2018, and reaching a critical mass in Winter 2018.

Ms. Pappas stated that PEI is working with over 300 stakeholder groups to help design Pipeline AZ. These stakeholder groups will be utilized extensively during the next 90 days of the soft launch.

Ms. Kimble asked about the data that is gathered and who it is shared with. Ms. Pappas stated that the data is owned by PEI and can be shared with the community. However, they have not decided exactly how and what will be shared yet.

Ms. Kimble asked if Pipeline AZ is a spinoff of the Phoenix Forward initiative by the Greater Phoenix Chamber of Commerce. Ms. Pappas stated that this is a separate initiative.

Mr. Harrel asked how PEI is funded. Ms. Pappas stated that the Maricopa County Industrial Development Authority funded PEI with $5.8 million.

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Ms. Spraker stated that she thinks this could be a valuable tool and asked if there was any plan for Arizona companies to be able to connect with potential employees that currently live outside Arizona. Ms. Pappas stated that they have started thinking about how this tool could expand throughout the country, but there are no plans to do this as of yet.

Ms. Spraker asked about the best way for employers to provide feedback to Pipeline AZ and ultimately take advantage of it. Ms. Pappas stated that companies can reach out directly to provide their feedback and companies can also register for their email newsletter.

Mr. Miranda stated that the number of jobs posted on the website has grown significantly within the last few months. He also stated that the website is providing localized data that is typically hard for regions and cities to gather. Lastly, he stated that this will be an important tool to help retain students that are educated here and prevent them from leaving the state due to a perceived lack of local job opportunities.

Mr. Hines thanked Ms. Pappas.

b) Mr. Hines introduced Timothy Papandreou with Waymo.

Mr. Papandreou stated that Waymo chose Metro Phoenix, and more specifically Chandler, for three major reasons: diverse demographics (including population growth, young families, a tech-savvy workforce, and snowbirds), topography and geography, and supportive governance at state and local level.

Mr. Papandreou stated that this support includes the City's Economic Development Division. Waymo was able to find a facility in Chandler near the Loop 202 and 56th Street with the City's help and they have now been in Chandler for nearly two years. Waymo has learned a lot from their experience in Chandler, including the "Early Rider" program that has allowed the public to begin riding in their vehicles.

Ms. Spraker stated that she works for a hospital organization and they spend a lot time researching the volume of cases that will exist in the future. Many of their Emergency Room doctors are predicting less trauma cases due to autonomous vehicles, which will limit the number of serious accidents. Mr. Papandreou stated that they have received this question before - including from organ banks that have asked W aymo where they will receive their organs when autonomous vehicles become widespread - Waymo has no estimates regarding these effects because they do not know how quickly autonomous vehicles will be adopted.

Mr. Villareal asked about the vehicle's ability to know when it is running out of gas and when it decides to drive back to the depot. Mr. Papandreou stated that the vehicles are constantly running diagnostic tests to determine when they are running low on gas.

Councilmember Roe asked if there was monitoring that existed within the vehicles. Mr. Papandreou stated that passengers can press a button at any time to talk to a Waymo representative if they have a concern or health issue.

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Councilmember Roe asked if local governments could partner with Waymo to see where the vehicles are located within their City for public safety reasons. Mr. Papandreou stated that this is something that could be explored.

Ms. Spraker asked if the vehicles are currently driving on the freeway and whether they drive in the I IOV lane. Mr. Papandreou stated that the Waymo vehicles do drive on the freeway and only drive in the HOV lane when there are two test drivers within the vehicle.

Mr. Hines stated that he rarely sees human-driven vehicles drive at the speed limit on the freeways and asked if Waymo has developed a "flow-of-traffic" feature that would allow the vehicles to drive five miles per hour above the speed limit to more closely match the speed of other vehicles. Mr. Papandreou stated that Waymo has worked closely with law enforcement agencies and they have been clear that the vehicles should follow the posted speed limits.

Mr. Czaplewski asked if Waymo will be able to take the experience they have learned in Chandler and apply it to other cities so that they can introduce the service faster in these communities. Mr. Papandreou stated that every mile driven is applied to the entire network of W aymo vehicles and is integrated into the aiti ficial intelligence of the vehicles.

Ms. Kimble stated that Waymo has been valuable in mapping Chandler and adding new business addresses to Google Maps that were not there before. Mr. Papandreou stated that Waymo has indeed been able to add much more detail to Google Maps in the cities where it is testing autonomous vehicles.

Mr. Villarreal asked if Chandler would be able to positively market the partnership with Waymo when the public service goes live. Mr. Papandreou stated that he believes that Chandler will receive international attention when the service is open to the public and he believes that people will likely travel from across the world to experience the service.

Mr. Harrell asked if Waymo received any pushback with their testing after the Uber accident in Tempe. Mr. Papandreou stated there has been some pushback, but many of Waymo's partners immediately came to their defense and expressed their trust in the service. Additionally, Mr. Papandreou stated that the accident showed that not all autonomous vehicles are the same.

Mr. Hines thanked Mr. Papandreou.

c) Mr. Hines stated that due to time constraints, James Smith's presentation would be rescheduled until a future board meeting.

Mr. Smith stated that he would like to briefly add that the City is proactively supporting and marketing the autonomous vehicle industry in Chandler. Additionally, the City Council will consider a new zoning ordinance at the April 26th meeting that would lower parking standards for developments that incorporate ride sharing and autonomous vehicle loading zones.

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Mr. Papandreou stated that Waymo has had the opportunity to provide feedback on this proposed ordinance and has enjoyed the ability to collaboratively work with the City on this.

Mr. Hines thanked Mr. Smith.

6. Action Items

7.

a) Mr. Hines nominated Mr. Moss to be Chairman. This was seconded by Mr. Harrell and approved unanimously. Mr. Harrell nominated Mr. Locke to be Vice Chairman. This was seconded by Mr. Hines and approved unanimously.

Advisory Boardmember Comments

None

8. Next Meeting

Mr. Hines announced the next meeting was scheduled for August 1, 2018.

9. Adjournment

Mr. Hines adjourned the meeting at 9:51 a.m.

Micah Miranda, Board Secretary

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MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY BOARD OF THE CITY OF CHANDLER, ARIZONA, Wednesday, August 1, 2018, held at Chandler City Hall, 175 S. Ari~ona Ave., Chandler, Arizona.

Board Present:

Board Absent:

Others Present:

1. Call to Order/Roll Call

David Moss, Chairman Terry Locke, Vice-Chairman Micah Miranda, Secretary (Economic Development Director) Cecilia Ashe, Boardmember Jonvieve Bryant, Boardmember Steve Greenhalgh, Boardmember Bill Gusmano, Boardmember Terri Kimble, Ex-Officio Ryan Nouis, Boardmember Mike Spangenberg, Boardmember Julie Trujillo, Boardmember Nick Woodruff, Boardmember

Todd Czaplewski, Boardmember Larissa Spraker, Boardmember John Paul Villarreal, Boardmember Andrew Weingartner, Boardmember

Kevin Hartke, Councilmember Terry Roe, Councilmember Sam Huang, Councilmember Jeremy McClymonds, Councilmember Marsha Reed, City Manager Joshua H. Wright, Assistant City Manager James Smith, Economic Development Innovation Manager Kim Moyers, Downtown Redevelopment Manager Kimberly Janes, Tourism Program Manager Michael Winer, Economic Development Specialist Ryan Kaup, Economic Development Specialist

Mr. Moss called the meeting to order at 8:36 a.m.

2. Approval of Minutes

a) Mr. Locke made a motion to approve the minutes from the April 18, 2018 meeting, motion seconded by Mr. Nouis. Minutes approved unanimously.

3. Unscheduled Public Appearances

None

4. Scheduled Public Appearances

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'/

None

5. Briefing Items

a) Mr. Moss introduced Ms. Janes to discuss Chandler's Tourism rebranding effort.

Ms. Janes stated that the City completed a new tourism strategic plan one year ago. The strategic plan took a look at what has been done in the past and interviewed approximately 70 stakeholders. Following this research, a five-year plan was developed for the City's tourism efforts.

Ms. Janes stated that the four target markets for tourism attraction in Chandler include business travel, meetings and events, leisure travel, and Sonoran (Mexico) travel.

Ms. Janes stated that the City recently requested quotes from local companies to design a new marketing rebrand. After receiving responses to the scope of work, a local Chandler company - Sandoval - was chosen. After discussing this process, Ms. Janes displayed the new logo that Sandoval designed.

Mr. Miranda stated that one of the items that is exciting about this new re branding effort is that it integrates Chandler's focus on technology and innovation into the tourism efforts.

Mr. Spangenberg stated that he liked the logo and thought that it was more modem-looking.

Mr. Greenhalgh stated that the "Disconnect" brand may be misunderstood and the first impression of the message was confusing to him. Ms. Janes stated that she appreciated this feedback and that Sandoval was planning to use very explicit imagery behind the logo to communicate Chandler's reputation with technology and innovation.

Ms. Bryant stated that the different shades of color within the word "Disconnect" helped better express the dual message of the word.

Ms. Kimble asked if the City did a press release regarding the Expedia award that Chandler was ranked as the 30th best vacation destination out of 4,600 cities in North America. Ms. Janes stated that a formal press release was not sent out, but there were social media posts that shared this news.

Councilmember Roe stated that he thought the first example showing the business meeting was a good representation of the message that the branding effort was trying to communicate.

Mr. Gusmano asked if there were any specific factors that Expedia used to determine their ranking. Ms. Janes stated that this was determined by the number of reviews and how positive those reviews were.

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Mr. Gusmano asked about the target audience for this new Tourism logo. Ms. Janes stated that it runs the gamut, but primarily the business travel decision maker. Leisure travel was also a target audience.

Councilmember Huang stated that images displayed behind the logo looked nice, but the word "Disconnect" had a negative connotation to him.

Ms. Kimble stated that she was speaking with an individual from out of town who commented that Chandler has some highly ranked hotels with a strong focus on sustainability and that the sustainability theme may be a good message to incorporate into future branding efforts.

Ms. Ashe stated that it will be important to accentuate the fun images behind the logo, because the word "Disconnect" could be concerning to some individuals.

Mr. Moss thanked Ms. Janes.

b) Mr. Moss introduced Mr. Miranda to discuss the economic and fiscal impacts of employment land uses versus residential land uses.

Mr. Miranda stated that one of the most common items that the Economic Development Division reiterates to internal and external partners is that employment corridors need to be protected from residential encroachment. Mr. Miranda stated that the presentation includes data showing why this is important.

Mr. Miranda stated that nearly 88 percent of Chandler's land area is developed. This includes approximately 18.4 72 existing acres of residential development with 1,393 additional acres of residential development expected at build out. Additionally, there are approximately 3,877 existing acres of employment development with 2,557 additional acres of employment development expected at buildout.

Mr. Miranda displayed a map showing where the undeveloped and uncommitted land is located. Mr. Miranda stated that the majority of this land was located towards the southeast portion of Chandler.

Mr. Miranda reviewed the data from a study that looked at typical development scenarios for 100 acres. These four development scenarios were office, manufacturing, single-family, and multi-family.

The office scenario could yield 1.52 million square feet of space and support up to 6,951 jobs. The manufacturing scenario could yield 1.39 million square feet of space and support up to 3,589 jobs. The single-family scenario could yield 300 homes and support up to 221 jobs. The multi-family scenario could yield 600 units and support up to 191 jobs.

One-time construction sales tax revenues would be $2.09 million for office, $1.91 million for manufacturing, $1.12 million for single-family, and $0.93 million for multi-family.

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•

The ongoing annual commercial sales and property taxes to the City would be $2.56 million for office, $1.42 million for manufacturing, $0.23 million for single-family, and $0.29 million for multi-family.

Ms. Kimble asked if there were long-term projections for ongoing sales taxes because the one-time impact fees and development fees will diminish as the City reaches buildout. Mr. Miranda stated the ongoing revenue statistic answered this question and it is also important to look at the long-term jobs that each development scenario creates.

Mr. Moss stated that this data really shows how important it 1s to protect employment corridors.

Mr. Smith stated that this analysis looked at 100 acres and there are very few remaining 100 acre parcels, or even contiguous parcels that add up to 100 acres. For this reason, this makes it even more critical to save these parcels for employment uses so that Chandler has the opportunity to attract larger commercial projects.

Mr. Moss thanked Mr. Miranda.

6. Action Items

7.

8.

a) None

Advisory Boardmember Comments

Mr. Greenhalgh stated that he believes it is important to continue looking at opportunities to develop more recreational sports fields to support local families and attract more tourism dollars.

Next Meeting

Mr. Moss announced the next meeting was scheduled for October 17, 2018.

9. Adjournment

Mr. Moss adjourned the meeting at 9:21 a.m.

Respectfully Submitted,

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MINUTES OF THE ECONOMIC DEVELOPMENT ADVISORY BOARD OF THE CITY OF CHANDLER, ARIZONA, Wednesday, October 17, 2018, held at Chandler City Hall, 175 S. Arizona Ave., Chandler, Arizona.

Board Present: David Moss, Chairman Terry Locke, Vice-Chairman Micah Miranda, Secretary (Economic Development Director) Cecilia Ashe, Boardmember

Board Absent:

Others Present:

1. Call to Order/Roll Call

Steve Greenhalgh, Boardmember Bill Gusmano, Boardmember Terri Kimble, Ex-Officio Mike Spangenberg, Boardmember Larissa Spraker, Boardmember Julie Trujillo, Boardmember Andrew Weingartner, Boardmember Nick Woodruff, Boardmember

Todd Czaplewski, Boardmember John Paul Villarreal, Boardmember Jonvieve Bryant, Boardmember Ryan Nouis, Boardmember

Sam Huang, Councilmember Jeremy McClymonds, Councilmember Terry Roe, Councilmember Joshua H. Wright, Assistant City Manager Travis Okamoto, Caliber Companies Scott Seeley, Caliber Companies Thiru Thangarathinam, MST Solutions Ryan Peters, Intergovernmental Affairs Kimberly Janes, Tourism Program Manager Chelsey Faggiano, Economic Development Specialist Ryan Kaup, Economic Development Specialist Michael Winer, Economic Development Specialist Odette More, Economic Development Research Assistant

Mr. Moss called the meeting to order at 8:36 a.m.

2. Approval of Minutes a) Mr. Kaup stated that the meeting notes were amended on page 2 within the 4 paragraph. b) Mr. Miranda clarified stating that instead of an RFP process, the City requested price

solicitations. c) Mr. Locke made a motion to approve the minutes from the August 1, 2018 meeting,

motion was seconded by Mr. Weingartner. Minutes approved unanimously.

3. Unscheduled Public Appearances None

4. Scheduled Public Appearances None

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5. Briefing Items a) Mr. Miranda introduced Ms. Faggiano to the group as the newest member of the

Chandler Economic Development team. He stated that the board will soon be interacting with her more frequently as she will assume Mr. Kaup's EDAB duties effective October 18, 2018.

b) Mr. Moss introduced Chandler Company Spotlight feature: Mr. Thangarathinam of MST Solutions.

Mr. Thangarathinam began his presentation with an overview of MST Solution's company roadmap and future plans for continued expansion within Chandler.

He stated that he started the company in 2012 after a IO-year career with Intel Corporation. MST has grown to two locations, the Chandler location which acts as the company's US headquarters, and a second location which is located in the southern part of India.

Mr. Thangarathinam stated that the majority of the company's growth over the last two to three years was a result of the US operations. The company's facility is located off of Chandler Blvd. and Dobson Rd. in a 20,000 square-foot building, and houses a total of 70 people.

He continued with discussing that MST Solutions acts as a legacy system for their clients to integrate various technology systems. He mentioned that a few of the company's regional clients include: American Express, Banner Health, Microchip, Rogers Corporation, Republic Services along with other healthcare, higher education and public sector partnerships.

Mr. Thangaratinam stated that the company's main focus is the following three C's: customers, colleagues and the community. He mentioned that he takes pride in better serving his customers, providing a great work environment and path for continued growth for all of his colleagues and that the company has implemented programs that allow employees two full days of paid time off to participate in desired community work. He continued with stating that when you put all of the three e's together, that makes up MST Solutions core purpose; to grow responsibly and make a big positive impact on the region while maintaining the company's culture. Mr. Thangaratinam, continued by highlighting recent achievements and awards MST has won based on their company culture in just six short years of being in business.

Mr. Thangaratinam transitioned to highlighting where MST is headed in the next four to five years. He stated that there were two growth paths the company has set forth: 1) An organic growth path that will result in the company becoming a $50-60 Million company by 2023. 2) A partnered acquisition growth path that is actively being pursued that will allow MST to become a $100 Million company within the next 4 years and a top consulting firm in the nation with 350+ employees. Mr. Thangaratinam said he plans to model his acquisition growth strategy after other successful companies with a presence in Chandler such as Microchip and Rogers Corporation.

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Mr Thangaratinam opened up the discussion for questions.

Ms. Kimble stated that she is a huge supporter of Mr. Thangaratinam, commending him for starting his homegrown business in Downtown Chandler noting that within six years the company has expanded three times. She also said you can feel the positive culture that has been created when you walk through the company's door.

Ms. Trujillo asked what type of positions and degrees for which MST is currently hiring. Mr. Thangaratinam stated they are on a two-track hiring process. Track 1: Looking to attract experienced professionals with backgrounds in business analysis, project management and technology. Track 2: Looking to attract recent college graduates who will be able to grow with the company. He went on to state that they are currently looking to implement a training program that will allow students to hit the ground running with MST as soon as they graduate. This program has not yet been implemented; however are seeking degrees in Computer Science, Information and Technology.

Mr. Locke asked Mr. Thangaratinam to expand on the company's culture and what he did to make the company's culture a success. Mr. Thangaratinam stated that the culture he created was one that you can feel once you walk through the door and to which all employees, including himself, contribute. He credited author Patrick M. Lencioni and the book The Ideal Team Player for MST Solution's culture as it was framed around the three essential virtues and values mentioned in the book.

Ms. Kimble and Councilmember Roe thanked Mr. Thangaratinam for MST Solution's investment in the Chandler community and stated that they look forward to working with him in the future as the company continues to grow.

Mr. Okamoto asked if MST Solutions has identified the companies they may be interested in acquiring and if they already have an acquisition financial structure set up to do so. Mr. Thangaratinam said they are in the midst of finalizing their ideal structure and plan on working with community partners to execute.

Ms. Trujillo asked what are some challenges and great things about being located in Chandler. Mr. Thangaratinam stated he feels as if the hiring of top talent may be the biggest challenge as his company is looking for specific technology talent, and seem to be competing with other regions such as Silicon Valley. He mentioned that they are considering hiring individuals from regions such as Silicon Valley and building a team around remote employees until they can relocate to the Chandler area.

The group thanked Mr. Thangaratinam for his time.

c) Mr. Moss introduced Mr. Winer for a discussion of Opportunity Zones.

Mr. Winer began with an overview of the Opportunity Zone Program. He discussed how and where Chandler's Opportunity Zones were established and ways the city plans to promote the areas for investment.

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Mr. Winer stated that the Opportunity Zone Program was established by the Tax Cuts and Jobs Act in 201 7 ~ offering federal tax benefits to encourage investment in lower income areas.

He continued by saying Arizona as a state had 669 qualifying census tracts but were only able to nominate 25% to the Treasury Department. The submission approval process included Governor Doug Ducey, the Arizona Commerce Authority as well as urban and rural areas.

Mr. Winer said that on March 21, 2018 Arizona's nominations were submitted to the Treasury Department and on April 9, 2018, 160 census tracts were approved making Arizona one of the first states to get their Opportunity Zones approved.

Mr. Winer stated that on March 8, 2018 the Chandler City Council approved two contiguous census tracts which were nominated based on their potential for redevelopment and long term economic growth. The boundaries for Chandler's Opportunity Zones are Chandler Blvd. to Pecos Rd. (from North to South), Alma School Rd. to McQueen Rd. (from West to East).

Mr. Winer shared an example of what might motivate an Opportunity Zone investor to hold their investment long term.

He concluded by stating the City's next steps are to promote the Opportunity Zones by reaching out to investment groups, property owners, and brokers to continue to educate and spread awareness of this program.

d) Mr. Moss introduced to Mr. Okamoto of Caliber Companies.

Mr. Okamoto started by introducing himself and his colleague, Mr. Seeley.

Mr. Okamoto continued with an overview of Caliber, stating it is a real estate private equity firm founded about 10 years ago by two young entrepreneurs. The company is currently located in Scottsdale with 70 headquarter employees and 400 Million in assets under management.

Mr. Okamoto stated that Caliber has a very unique business structure with a variety of divisions. He briefed the board on the variety of businesses formed around the parent company. He continued with a discussion on how clients invest in different projects through four investment funds built by specific strategy or asset class: 1) Caliber Diversified Opportunity Fund, 2) Caliber Residential Advantages Fund, 3) Caliber Fixed Income Fund, 4) Caliber Tax Advantage Opportunity Zone Fund.

Mr. Okamoto continued the discussion of Caliber's business model stating that they currently have assets in six or seven states; however 70-75% of assets within the border of Arizona. He stated that Caliber is a key player in the low market real estate with about $10-40 Million in purchasing power.

Mr. Okamoto provided the Board with examples in support of Opportunity Zone investment that he is currently seeing at Caliber as well as the benefits to the

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investor. He outlined six key factors to follow in order for aninvestment to be successful.

Mr. Okamoto concluded this discussion by showcasing a variety of projects Caliber has completed recently that are now located in eligible Opportunity Zones.

Mr. Okamoto opened up the discussion for questions.

Ms. Kimble stated she saw Opportunity Zones as a tremendous opportunity and asked Mr. Okamoto what Caliber's sweet spots are for continued success. Mr. Okamoto stated that Caliber has invested heavily in the Hospitality industry with additional investment in mixed-use development, raw land and multi­family/single family residential.

Mr. Seeley added that Cailber's direction today is being driven by Opportunity Zones and investments in ground-up projects as well as equity of businesses. The Caliber team has been meeting with regional partners such as GPEC to be top of mind for companies looking to locate in our region who may need upfront investments to fund business acquisitions.

Ms. Kimble asked a question on the Opportunity Zone Guidelines and whether or not the SEC of Alma School Rd. and Pecos Rd. as well as the SWC of Arizona Ave. and Pecos Rd. were considered as part of the Opportunity Zone.

Mr. Miranda responded stating that the areas in question were not included within the City of Chandler's Opportunity Zone census tracts. Mr. Okamoto added that although those areas may not be included in the specified Opportunity Zone, those areas will still receive a positive impact from being located near the designated Opportunity Zones.

Ms. Kimble asked Mr. Miranda to provide more information on the Infill Incentive Plan and how it will complement the designated Opportunity Zones. Mr. Miranda, stated that when the city was evaluating where they would like to deploy opportunity zones, they took into consideration programs that were already being utilized such as the Infill Incentive Plan which allows the city to work developers, business owners to demolish and/or enhance aging retail, brining the development up to modem standards. Mr. Miranda continued mentioning the variety of other programs that support those redevelopment efforts throughout the community.

Ms. Kimble inquired if an educational campaign to exisiting businesses that fall within the designed Opportunity Zones could be implemented. Mr. Miranda stated he that he thought that idea was great and will have the Economic Development team look into what can be done.

Mr. Miranda thanked Mr. Okamoto for his presentation and Mr. Winer for his continued work toward bringing awareness to Chandler's Opportunity Zones. He stated that the City's Economic Development team is actively reaching out to groups that are pulling funds together and providing financing options. He touted the City-funded Incubator, Chandler Innovations, as well as various programs

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such as the PHX East Valley Angel Investor Initiative as ways the city is taking initiative.

6. Action Items None

7. Advisory Boardmember Comments

Ms. Spraker provided a brief update on Dignity Health's development in Chandler. She mentioned that a Parking Garage is under construction and is slated to be done in March of 2019, with the new 96 bed tower to follow. She touted Dignity Health's level of care over the last IO years. In addition, she briefed the Board on the recently announced partnership with Creighton University which is scheduled to open at St. Joseph in 2023. She concluded by providing brief updates on the Ironwood Cancer and Research Center and Dignity Health's micro hospitals/freestanding ED facilities.

Mr. Moss thanked Ms. Spraker for the update and noted that we are looking forward to having her present at an upcoming EDAB meeting.

Mr. Locke provided a brief update on Chandler Unified School District noting that Knox Gifted Academy was recognized as a US Blue Ribbon School of Excellence. He also provided the Board with a brief background of the school and what this honor means to the community. He continued by noting that Basha High School is looking to expand their cyber security program and he plans to provide a more in depth update at the next meeting.

Ms. Ashe stated she found Opportunity Zones to be of interest and would be open to a brainstorming conversation to ensure the education component is a success. Mr. Seeley added that regional organizations such as the Arizona Commerce Authority are also implementing discussion groups to ensure Opportunity Zones in Arizona are a success.

8. Next Meeting Mr. Moss announced the next meeting was scheduled for January 16, 2019.

9. Adjournment Mr. Moss adjourned the meeting at l 0:23 a.m.

Respectfully Submitted,

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