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Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016

COMMITTEE AGENDA TOPICS

I. Midtown/Pearle Street Park Redevelopment Project Action: Staff and representatives from Pappas Properties/Terwilliger Pappas will provide an update

on the status of project. This was previously brought to this committee on April 14, 2016.

II. Workforce Development Pilot Action: After discussion at the ED & Global Competitiveness meeting on September 8th and

subsequent discussions with Committee Members that were not present on September 8th, staff is recommending approval of the workforce development pilot program design that was presented at that meeting. If approved by the Committee, this will be brought forth to the October 10th City Council Meeting.

III. FY2018 ED & Global Competitiveness Strategic Focus Area Plan

Action: Staff will continue their dialogue with the Committee and receive feedback on developing the FY2018 ED & Global Competitiveness Strategic Focus Area Plan.

IV. Equitable Economic Development Fellowship Program Update

Action: Staff will provide an update on the Equitable Economic Development Fellowship Program that includes the participation of City of Charlotte staff from the NBS Economic Development Division and the City Manager’s Office.

V. Future Meeting Topics

COMMITTEE INFORMATION

Council Members Present: James Mitchell, Vi Lyles, Julie Eiselt, LaWana Mayfield & Ed Driggs Others: Mayor Jennifer Roberts, Patsy Kinsey & Ron Kimble Guest Speakers:

1. Peter Pappas, Pappas Properties/Terwilliger Pappas 2. Jim Garges, Mecklenburg County Parks & Recreation

ATTACHMENTS

1. Charlotte Regional Realtor Association Property Redevelopment & Public Infrastructure Improvements Presentation

2. Workforce Development Training Pilot Presentation 3. Workforce Development Pilot Proposal Handout


4. Economic Development & Global Competitiveness Crosswalk of Focus Area by Strategic Priority Handout

5. Equitable Economic Development Fellowship Memo

DISCUSSION HIGHLIGHTS

Mitchell: Chairman Mitchell welcomed everyone to the meeting and asked for introductions. I’m going to turn it over

now to our staff resource, Randy Harrington, to introduce our agenda items.

Midtown/Pearle Street Park Redevelopment Project Harrington: Thank you Mr. Chair and Committee. We have four items for your consideration today. The first one is

Midtown/Pearle Street Park Redevelopment Project. This is an item that you heard back in April and we’d like to come back and give you a general update on the current status and what we anticipate for some next steps going forward and staff will give you that presentation. We also have Mr. Pappas and his team if there are any questions that can be referred to them. We also have the Workforce Development Pilot, which you heard the last time. I think since that meeting, we’ve had an opportunity to follow-up with a couple of Council Members who weren’t able to attend the last Committee meeting so we will continue that piece with the requested action for recommendation by the Committee. The other thing I will mention on the Midtown/Pearle Street, there is no action requested from Council, just some information. The last two items, the Focus Area Plan, just a continuation from that conversation from last time. Then, we’ll have an update on the Equitable Economic Development Fellowship program through the NLC.

Mitchell: One our colleagues has a very special day on Saturday, September 24th and we just want to wish her

much success and happiness. We have a cake for her to celebrate in advance, so join me as we applaud Ms. LaWana Mayfield.

Mayfield: I hope you all of you all are planning to help me eat this cake because I got a dress I need to fit in. Mitchell: Before we get started, Mayor, I know you have a short schedule. Any opening comments or do you just

want to see the presentation? Mayor: I’m just here to hear. Mumford: As Mr. Harrington said, this is going to be a higher level update. We haven’t been in front of you since

mid-April. A lot of work has gone into the community, development team, Park and Recreation, and other partners to move along some of the issues that were raised back in April. This is not meant to solve anything from a Council perspective today. There will be a series of presentations coming up in October for the Council. We want to make sure that we just re-acquaint everybody with the project. Again, it was April 18th that the Committee heard this and at that time, Mr. Pappas gave a presentation on what he saw as the project components. Since that time through the summer, as I mentioned, a lot of people have been actively engaged and are even here today, community members involved in several issues around the park design, the road design, the issue of parking, and we want to give an update on that today. What you see is the development as was proposed back in April on the bottom left side of the drawing. At the top is the most recent layout of the park space. That shows the ballfields, the walkways, pathways, the road alignment, and the position relative to the development itself. To give, again, a backdrop to the funding and as a reminder, there are lots of different components, and maybe step back and see this is an


incredibly complicated project due to a lot of land swaps, due to the partners involved, due to the timing, the market conditions that have continued to change out there, so a lot of people are putting a lot of effort into bringing this thing home. You will remember the components; you have the Charlotte Regional Realtors Association. Their office building will be rebuilt and they are funding that. The new mixed-use development, Pappas and Terwilliger Pappas will fund that. The park improvements are funded by the County through proceeds from some of the land swaps and sales, and then the infrastructure, the roadwork, the infrastructure around the park is funded through the Tax Increment Grant facility. Both the City and County are involved in that.

As a framework for our Tax Increment Grants, what we’ve shown on the right side of the picture is the

Premium Outlets, First Ward Park, and Metropolitan, all done with within our Tax Increment Grant structure, and the grants are, to remind the Committee, reimbursement only. The developer pays for the infrastructure improvements and then, over time, grants are made based on the increment of tax that’s received to both City and County. This tool allows us to invest in infrastructure, public asset purchase, and gap financing. This particular Tax Increment Grant is around the infrastructure component. Grant terms are either 45% or 90% and up to ten years. This one were giving the details is 45% and ten years and there is an overall capacity. We don’t talk a lot about this. We’re still within the capacity that the City Council set ten years ago and that is to keep the aggregate of all those projects, the commitments to pay those out, under 3% of the annual property tax revenue we have. We’re still within that with this project.

I want to talk now about the Tax Increment Grant components. Other items not specifically related to the

Tax Increment Grant document, the parking. There’s a Greenwood Cliff abandonment that’s been on your Council meetings since the public hearing. Then the rezoning, I want to talk a little about some rezoning requirements associated with the project.

This is a high-level, two high-level graphics that show the outline of various parts of this property that will

change hands to accommodate the overall project, and what you’ll see in the red is the Regional Realtor Association property currently on the left, and on the right how that ends up enlarging to accommodate the project. You’ll see a difference in the green border of the existing Pearle Street Park and what it will look like in the future bringing into that some Housing Authority property and City property and then moving up to the top, you’ll see the Housing Authority ends up in control of the property that’s now mixed between the Housing Authority and County. Two points to this. HUD or the Federal Housing and Urban Development needs to approve the Housing Authority’s swap. That’s because years ago, that land was acquired under certain requirements and the road realignment really needs that to happen, so HUD, we don’t have approval yet. The sense from the County is that approval will come. It’s just a matter of time to allow that swap. Then, there will be a number of ledger transactions between the City and County for park land and Right-of-Way, a lot of little parcels. We’ll get into those details at a later meeting, but just so you know, this is generally how it all shakes out. This allows for Pearle Park Way to go all the way up through the site around the Housing Authority, connect to Baxter, connects to McDowell. That’s the real emphasis of the infrastructure for the City. For the County, it allows for a different park configuration and allows for cleaning out some of the remnant parcels that exist with these swaps.

Mitchell: To make sure, because this is a lot of information for the Committee, Mayor, Patsy, are we all okay?

Okay, go right ahead. Mumford: I know I’m moving through it quickly. We’ll get more detail than you’ll ever want at some point. I do want to talk a bit about the Tax Increment Grant itself. As I had mentioned, it is for a 45% tax grant

after the project has been paid for. The maximum grant amount at this point we’re seeing is to be around


$4.4 million and there is an interest cost to carry that money. We’ll bring back the details of how long and why that number is there and we have done that before with some other deals. It’s a ten-year term or it ends at which point we’ve met the maximum amount reimbursement. It could come sooner, but it will go no longer than 10 years.

Lyles: If you could explain, not necessarily right away, but I’ve never quite understood why we do the interest

costs, limit the amount of percentage of the taxes and the project term, so it seems to me that I don’t know how that balances out, or if there was a formula or rationale for it.

Mumford: Okay, we’ll bring all of that back. Lyles: At some point, that would be helpful for me to explain, because there’s three kinds of terms they pay, we

pay them, we give them increment grant, they pay it back, it’s over a certain period, so how do those numbers work, or why do they work that way.

Mumford: Okay. Driggs: I just want to clarify, is the 6% interest cost to carry the amount that we pay the developer for the funds that

they’ve invested pending the reimbursement from the tax increments? Mumford: Yes sir that’s correct. Driggs: Okay. Mumford: Generally, Ms. Lyles, what happens is, we have the ability to put infrastructure in at today’s costs which is

much lower than ten years from that what would be in our CMP Program, and it’s paid for up front and we’re reimbursing the value of the big project that brings revenue to us. That’s the construct. We’ll get into all those details in upcoming conversations.

We do want a leverage ratio. What we don’t want to do is just have public money go in and we don’t get

much for it. You can see based on the projected over $204 million investment, given what the public would put in, it’s a very high leverage ratio. Then, this just shows over the term of 55% of the revenue that directly accrues to the County and the City and what that value is and then over 20 years, so ten years of a full run at 100% coming back to the City and County; you can see the amount there. It’s a big project, strong benefit financially to the City and County.

I mentioned other components, parking, that came up quite a bit with the community and there’s good

reason for that. There’s a public use today. People are used to parking out there and I have not been involved in all of those detailed discussions, but I do know there have been a lot, and today as we see the parking demand, if you take a look at the youth soccer and youth baseball, its 165 spaces. Interestingly enough, there’s a peak demand when all activities occur at the same time. That doesn’t happen a lot, but it does happen and we need to plan for that. The parking supply to support the 165 is on-street parking of 133.

Eiselt: Back to that point, at peak demand, it looks like the two fields can’t be used at the same time anyway.

They overlap, so right now is peak demand two different fields, two different sets of activities going on, whereas under the new plan, it’ll be one would anyway, or how does that match up with the numbers?

Mumford: This is where I’m going to call in for some support.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Garges: (Jim Garges, Director of Mecklenburg County Park and Recreation Department). The two uses don’t

overlap so soccer is the big driver on Saturdays and baseball not so much. What we try use is that peak demand at soccer time at 140.

Eiselt: Okay, thank you. Mayfield: My question regarding the parking is this is going to be created and maintained as free public parking or

are we looking at some point for there to be fees on this parking within their facility and then there is on-street parking or is there going to ever be a time where red bags are going to be dropped over them. I have a challenge with the fact that we have public parking, but based on events, that free parking then gets a red bag put over it where you can’t park there or a fee is associated with it. Have we gone that far in the conversations yet?

Mumford: The street parking, there’s no indication of putting red bags or meters, so that would be free public access

parking. With the Realtors, you all received a letter from Pappas Properties and Mr. Pappas that showed that the Realtors are open to allowing 50 spaces to be used during certain hours on the weekend. What they do require, Pappas Properties work those details, is some insurance indemnification as well as some ability to have security for the parking, which I think the users of the parking would want. How that amount of money gets addressed probably doesn’t equate to $10 an hour in parking. I don’t know the answer to that except that this is generally free access parking, all the time for on street, limited hours for the Regional Realtor Association parking deck as described in the letter that you all saw.

Mayfield: According to the letter, that means these 165 spaces, we’re just going to focus on those. For those 165

spaces, there could be a time where there is a fee associated for parking there? Mumford: I wouldn’t call it a fee. I’m just saying that the Realtors need to make sure that there’s security in their deck

to protect the users of the deck and they’ve got to figure how does the security get paid for. I don’t know how that will work and there needs to be some addressing of insurance risk associated with people using their property, so that’s not been worked out yet.

Mayfield: The last comment that I’m going to add to that piece is when you bring back more additional information, it

would be helpful for me to get a little more clarity around that because I would have a concern if we’re using dollars from the community for something that then is going to be a private interest because if we’re creating it for community and failing to come out and utilize it, it would be more helpful for me when I go back and speak to constituents to explain if we’re using tax dollars to help fund this, that this is going to be open and accessible to the community opposed to there being a $10, $15, whatever it possibly would be.

Mumford: We’ll articulate that with Joan and bring it back. Mayfield: Thank you sir. Harrington: Ms. Mayfield, the public money would be for the road infrastructure, not for the debt. Mayfield: Right. You know the Committee doesn’t differentiate on that. Driggs: I’m not sure I’ve seen all the information that’s out there but have we been responsive to the concerns that

were raised? Have we reached a point where the people who are responsible for youth soccer are comfortable with the proposal? Or is this something that we’ve kind of put out for them to think about?

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Mumford: I would be taking a risk answering that question directly. Mr. Chairman, there are representatives that can

respond. Mitchell: Committee, would you all like to hear from a representative? Lyles: I think we get through some of this and then come back because I know we got a letter. Driggs: I don’t think we need to get into a hearing forum, I was just wondering whether we have had conversations

such that everybody was happy or whether we’re not necessarily yet at that point. Garges: I can help answer that if you want. I’d say we’ve had lots of conversations about it. We’ve taken it to the

Park and Recreation Commission. Is everybody happy? Probably not, but we’re continuing to have conversations with them. All the meetings that we’ve had, we’ve had the Pappas Property team; we’ve been there, representatives, some of the individuals that are here today have been there. I think parking continues to be an issue, but yes, we’ve had several meetings and we’ll continue to do so.

Driggs: Alright, but I just want to get a status. Mitchell: Thanks Jim. Lyles: We didn’t talk about the potential 96 spaces. What would those 96 spaces be allocated toward? Mumford: Toward use for the youth soccer, youth baseball for the fields, so parking to support the park. Lyles: So if you add that up, it’s 200 and something spaces? Mumford: 279. Lyles: 279 and peak parking demands 165 and if you take out the 50, it still exceeds the amount of the peak

demand. If I can just understand, your configuration would be helpful. Mumford: And I just want to stress, that’s potential. All the parties involved are talking to Housing Authority and also

we have to just acknowledge that parking numbers there don’t necessarily equate to how far away is the parking to the fields. I think there are some issues off the bat. We will bring back as much of that detail as we can possibly bring when we come forward next time.

Mitchell: Thank you sir. Mumford: Greenwood Cliff abandonment, the idea is that, you’ll see it in the next slide on the timing, on your

November 14th agenda; we will be asking Council to consider approval of the Tax Increment Grant, and at the same time, will be when the approval to abandon Greenwood Cliff would occur.

The last item is rezoning. There are some remnant parcels that end up between road Right-of-Way and

existing properties that need to be rezoned because they are zoned as park land essentially. There’s also an indication from Pappas Properties that due to some market conditions and some changes in the dynamics of the components of the project, there will be a rezoning associated with the project itself. That will come forward in October when we have more details. I at least wanted to let you know that that is where the development team is headed.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 With that, here’s the schedule that we anticipate. October 4th, the County Commissioners will vote on the

Tax Increment Grant as well as the park plan, all the land exchanges involved, and they need to authorize the rezoning of those remnants parcels. They’re not voting to rezone, they’re voting to authorize the rezoning. On October 10th, at the Dinner Briefing of the City Council, we will come back and make a presentation with more detail. A lot will occur between now and the 10th, with the County Commission action and continue to work with the community and the developer, so we will be able to answer the questions that you raised today and bring forward a more definitive, detailed presentation. There are two committee meetings that should we need to come back to the Committee twice, we can come back on the 13th and the 27th of October to discuss this item, work through any details, and the idea here is that on November 14th, that it be ready to go should the Committee make a recommendation for a vote on a Tax Increment Grant and the Greenwood Cliff abandonment. The road won’t be abandoned immediately; it will be the ability to abandon the road should the project continue. Then, the rezoning I mentioned would be some point either February or March, depending on when it gets through the system.

Mitchell: Staff, thanks for the presentation. Committee, any other questions, feedback you can give to staff now. Driggs: Is the TIG financing done pro rata to the County and City property tax rates? Mumford: Yes sir. Just as a final comment, I really would like to thank the community, our partners at the County,

Housing Authority, Pappas Properties and the Regional Realtors Association. Everybody’s been hanging in there, having a lot conversations, some not as pleasant as others just because of the nature of the work. I think it’s positioned us to have a product that will be mutually beneficial to our community. There’s still work to be done, but I do thank everybody for hanging in there.

Mitchell: Thank you Pat, great presentation. Thank you Randy, thanks everyone. Thank you Mayor. Randy, you

ready to introduce the next item? Workforce Development Pilot Harrington: Our Workforce Development Pilot Program, again you heard this presentation at the last session. Want to

just give you a very brief recollection of some of what we covered and then request an action from the Committee to move this forward for full Council consideration.

Mitchell: I’m just going to make an opening comment. She wasn’t here last time, I think she was in D.C. about to

become a grandma, but I want to give a lot of kudos to Mayor Pro Tem. This is an initiative she’s been working on for years and thankful to Ann for working with us and Pat, so we’re glad we’re here, and Kevin the reason why you were hired, not to put pressure on you, is to implement this program. I turn it over to you Kevin.

Dick: Thank you Mr. Chair and good afternoon everyone. Again, Kevin Dick, Neighborhood & Business

Services. I wanted to follow up the strong and encouraging discussion we had on September 8th. Mitchell: Kevin, we don’t have the hard copy. Dick: I apologize for that. I wanted to follow up the strong and robust discussion we had on September 8th and

bring forth a few clarifying points and points of emphasis after my discussions with Councilmember Driggs and Mayor Pro Tem Lyles. Definitely thank you all for your time for those follow-up discussions. Rather than go through the entire presentation again, what I’d like to do is emphasize a few slides particularly


slide three. On slide three, I wanted to emphasize the business services aspects of this program, not just the human services and I think we talked about that on September 8th, but we really didn’t talk about how this program can help meet labor market shortages in the areas of training and the industries that are suggested here. I actually retrieved some very good labor market data related to residential and commercial construction and highway construction and broadband and fiber optic cabling. I’m going to just read a few direct quotes from my research. “The construction workforce is facing aging issues in skill shortages, both of which have a detrimental effect on the progress of residential and industrial construction”. That was very apparent there. “In comparison to an expected 1.3 percent increase in total employment for 2020, the construction industry employment is slated to increase by 2.9 percent”. So whereas just general industry employment is 1.3, just construction industry is 2.9. What we have is a situation where there are many people slated to retire by the year 2020 that have skill sets related to construction-related trades and not the workforce fulfillment. This program can help with that pipeline.

Also I’d like to bring some clarifying information on slide five, which is the list of public, not-for-profit, and

corporate partners. I did want to add Messer Construction. We have Stephanie Kegley here today. They have also expressed interest in being a partner and by being a partner that could mean presence on the business advisory councils to help inform curriculum for the programs, but also a possible employer for the program graduates. We’re extremely happy to have their participation but obviously the participation of all of the other companies.

Mitchell: I have to do a shout out so I can keep my job. Diana Williams is here to represent Barton Malow. Thank

you Diana. Lyles: How’s he doing Diana? Williams: Because of me, he’s awesome. Mitchell: I’m glad you said because of you. Driggs: Would you come up and sit at the table? Lyles: We want the real deal. Dick: On slide six, we talked about the training program outline and one area of emphasis I’d like to mention is

the life and soft skills training. One of the things that we would be asking the providers to do is make sure there is a component related to some level of civic responsibility. In this case, some level of job coaching/mentoring to future trainees in the program. I discussed this specifically with Councilman Driggs. We thought it was important that there be some level of quid pro quo, if you will, in terms of a person being engaged in the program and so we thought this would be a good way to have that component and we know at least one of our providers, we just haven’t had a chance to contact both, but one provider has enthusiastically agreed to include this so we’ll make sure they’re in both of our contractual documents.

Mayfield: Before we go too far, I’m looking at the possible public, not-for-profit, and corporate partners. We just

have listed City departments and their contractors, but I was hoping to see specifically one of our largest employers and that’s Charlotte/Douglas International Airport.

Dick: It was definitely contemplated to have them included amongst the departments, but if you’d like for the

October 10th item, we’ll be more specific about the departments.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Mayfield: It would be nice to see that they are at the table for this just as we have Housing Authority, CP, and other

groups. Generally where other groups are listed out, it would be nice to know that they are specifically listed out and just included under City departments and their contractors. That’s a little vague and we definitely have opportunities with the growth that is currently happening and is continuing to happen, we need to make sure that Charlotte/Douglas International Airport is at the forefront of this conversation.

Dick: We’ll make sure. Mayfield: Thank you. Dick: I would like to add that we have been starting discussions with a number of the departments about how

we’d like to integrate this program into their work schedules and plans for projects, so please stay tuned on that.

Moving onto slide eight, I just wanted to, again, reiterate the expected program outcomes. We have high

expectations for the program and for the providers and so we think that the outcomes in these areas as they relate to not just training completion, but also placement and retention, so just that this is a program about sustainability, not just putting people in the job but really helping them get into career trajectories and learn other marketable skills that can be transferred to other industries.

Driggs: We talked about this a little bit but the program outcomes do not include, unless I’m missing something,

raising funds for continuation of this. I mean, this is a pilot, right? So, assume we’re trying to jumpstart something being funded by others. Do you have a goal in terms of your outcomes for the kind of support that you’ll be able to establish? I mean, if we make this initial investment, I think it’s towards putting in place something that could continue.

Dick: Sure. I intended to address that in program costs. Driggs: Okay, sorry I’m getting ahead of myself. Dick: No problem. As Councilman Driggs alluded to the fact that the initial funding has been identified, it would

pretty much take us the next 18 months. Beyond that, the program has not been funded. What we’d like to do is obviously see success during the course of the administration of the program. At that point, solicit other possible funders, both public and private, and we’re hoping that just as we do Tax Increment Grants, Business Investment Grants, and so forth and they are based upon public/private partnerships, that would be our intent there. The $250,000, which is composed of CDBG funds, is actually a component of a larger overall program budget because our providers are bringing resources to these as well. This program really enables them to extend some existing programs designs. Part of the sustainability would be for the providers to continue on the tracks that they have. But, if we are able to obtain success, we believe that other public funders and perhaps foundation donors could be attracted and we certainly want the private sector community to buy in based upon the talent they’re able to achieve from the program. In terms of a specific dollar amount, Councilman Driggs, we haven’t identified that. I’d say sort of iteratively that if $250,000 can successfully fund 40 and this works well, a target could be an additional $250,000 that we would raise from amongst those donors. But, again, if it’s successful and whether we’re able to raise it from those donors or not, we may want a conversation with Council in the future.

Driggs: The reason I mentioned this in the outcome section is because it seems to me that to remain to our

commitment of $250,000, that we have an idea in mind as to what we’ve created and what we go forward with. I realize that might be tough to nail down, but if we had some sort of a benchmark continuing activity


that we thought would come from it. The other question I had was, you’ve got 40 people, about $6,000 each in City funding, what’s the total budget per participant, including funding sources?

Dick: I will have that at the October 10th meeting. I need to get the exact dollar amounts the other partners are

putting in. I just don’t have that in front of me. Driggs: Alright, thank you. Kinsey: The $250,000 in CDBG funds, is another program being displaced because of this? Where are we getting

those funds? Mumford: CDBG had for decades something called an Economic Development Revolving Loan Fund, and that fund

had an awful lot of restrictions associated with permanent employment with those funds, so if the funds went to a company, it wasn’t to up fit their building and stop, it had to be tied to that, a certain number of permanent positions. We’ve struggled mightily to actually get those funds to work, so we talked to HUD and said, could we re-appropriate those? The basis of the money was CDBG years ago and so what we’re doing is we have something now that’s still tied to workforce but it’s not so constrained, and so we’re using the funds from that Economic Development Revolving Loan Fund for this as well as for some housing programs. We’re just putting money to use that we couldn’t for a long time.

Kinsey: Could we get some more CDBG funds? Mumford: This is not appropriated each year from HUD. This was just long-term money that’s been sitting there.

We’ve had some program income, so it’s a one-time move. That’s why this is a one-time opportunity for a pilot program.

Kinsey: Thank you. Lyles: I think that it raises a great question about our outcomes and one of the things I wonder about is when

would we, actually if you go back to how the program is laid out and we talk about the training for three-six months placement. It’s very hard, I think, to go to people and say, let’s just say we find a foundation we want to submit application for a grant, when we come back and talk about this; I wonder if we could have a target that agrees when our outcomes are sufficient enough in reporting on the status. Do we have increments like, training was completed, this number stayed in, so that we can begin to build a track record for applications to various organizations that are dealing with economic opportunity now. Maybe when we talk about expected program outcomes, we have at least 80% of the program’s complete, program training, and that would be six months. There are milestones and timelines because I think it would be really hard to take the pilot out as is and say “hey, we’ve got a pilot and we’ve enrolled and now let’s go and ask for money”. I’d like to kind of say that I really think that if we can actually get to the place where we’re seeing the employment in the private sector that we start talking about the success of our training and talk about tracking that and then beginning to build a program that we could actually go and apply for grants or build support within the community for additional participation. I’d like to say like out of our expected, let’s do some milestones with some dates and track that in a way that we do it in a way that we can come back and talk about it. I don’t want to have a big bone nor do I want to have a complete absence of a big bone at the end.

Dick: Did you mean that we would track as we go and also report back to you all as we go? Is that something

you’re requesting?

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Lyles: As long as it’s tracked and available, I don’t know that we have to always know this, but I think what we

have to know is it when you think that it’s ready to be described in a way that we can begin to talk about the future of it. This is 18 months, so I’ll assume that at least in 12 months; by 12 months, we kind of have an idea of where we are. I wasn’t really thinking you guys come back, using your judgment, if you think it’s not working, I’d like to know that earlier as well. This is a partnership; we’ve got a lot of people working with us and the pilot idea was to try something and fix it so that we wouldn’t be at the end saying, and all of us have heard these jobs programs where “I hired this guy, it didn’t work, I’m never doing it again” or “it didn’t deliver”. Part of it was getting people to a place that they incrementally got supported improvement and I think the same thing for us, we incrementally know where we stand.

Eiselt: I’d like to see the actual leverage ratio of our dollars vis-a-vis our community partners and our providers. I

think that’s always a good opportunity to also show the community how we’re using our dollars to leverage that with their involvement and I think it helps when we look at those opportunity costs.

Dick: Okay, we’ll be sure to include those. Driggs: I think just further to what we’ve been saying, if you had in place when you come to us a kind of

performance monitoring framework for progress on the thing so that we would be aware if you’re falling short in the course of the 18 months. If it’s working as planned, great, but if not, I think we need to have the opportunity not to spend the rest of the $250,000 on something that obviously isn’t working. That would entail you saying to us, these are benchmark dates, this is where we expect to be. The whole performance outcomes thing given that this is a one-time investment and we’re not talking about renewing the funding, you kind of get to the end of 18 months and say “well that didn’t work so well”.

Dick: I understand fully what you mean. The only caution I would state is that there are going to be some

program participants that take longer to be trained than others. So, you could get to say six months, which would be 33% of the way through the program and maybe their placement numbers aren’t as high as we’d like, but within three months, they get that. I just think that it’s important to have, especially if you want to have the framework in place, but also see the results, it’s important that we have the ability to check in if the tide turns, if that makes sense.

Lyles: It does make sense because we’re talking about multiple barriers to employment and we’re talking about

people. And the whole idea of a pilot was to allow for correction if it’s not working, so let’s just say we chose as a group you chose perhaps, that the timeframe for training would be three to six months. If we go through and test it and we realize three is never going to be on the table, in my opinion, adjustments and corrections. I think the point that we’re trying to make is let’s not do it so at the end we’re unaware of where you are seeing it because you’ll have a sense of this. It’s an exact science that 50% or 80% in the middle. I think that we’re looking more is you guys do some performance benchmarking so that you can have a sense of how often you’re having to correct with your partners and people, how is it working, can you fix it? That would be the question that if we need correction, can we fix it.

Dick: Sure. Lyles: I completely get it and I think the point is, let’s not go all the way to the end without having that judgment

call made and I think you guys know that. Mayfield: I have a couple of questions. One, the last time we met, I mentioned a couple of organizations that were

not listed in our partners. Did you have a chance to reach out to them? I know we’re still working on it but I want to make sure at the frontend, we’re looking at, I think at the time I mentioned not only Charlotte


Bridge Home to specifically work with our Veterans, but also the Exodus Foundation to make sure we’re doing outreach, and to tie into Mayor Pro Tem, I think it would be helpful for me to know and I think for my colleagues to know, what is our monitoring process because in the real world, you have jobs that say they give you 90-days training. That really does not happen. You may receive one week of training and then you’re pretty much on your own to try to figure it out. I think knowing what the monitoring process on our end is going to actually look like would be really helpful because what I don’t believe any of us want is it to be a one shot and done and then to say “well it wasn’t successful but we didn’t give it every opportunity”. But I also want to consider real conversation regarding that initial pilot timeframe because it takes three to five years for something to really come up off the ground to be successful. If we’re looking at the initial 18 months as the preliminary to decide whether or not we’re going to consider it a success, and at the same time, what are our parameters that identify success? So what does success look like whether we’re looking at the numbers, if we’re looking at the impact, or we’re looking at someone that makes it past six months, are we looking at those who had the opportunity to grow, which you have a lot of this in here to what the outcomes that are going to come up, but I wanted to make sure that we hit those partners are diversified and that we have a real conversation that it might be more than the 18 months, and if so, be prepared on the front end of how we move forward. Does that mean along with the partners helping to bring $250,000 CDBG funds? How much was identified, do you remember Mr. Mumford, the total amount that has been sitting there that we haven’t been able to use? Because I think this is a small percentage, this $250,000.

Mumford: We had close to $2 million and the others have gone over a course of years both projected for housing

development. Mayfield: What I think also would be helpful for all of us, and I know because of course I’m going to ask the question

when it comes to Housing and Neighborhood Development regarding how we’re going to allocate CDBG funds. It would be helpful to know where does this leave us in our balance and knowing that there’s a possibility that additional requests on a Federal level may happen which could be very realistic; it’s just being as transparent as possible on the front end. Expected program outcomes.

Dick: You had a made reference to what success looked liked, so I just wanted to bring that slide back up. In

terms of the complete partner list, we’ll make sure that when we bring it back October 10th, all of the partners have been contacted.

In terms of what’s next, that really hasn’t changed. Obviously, a few more details to fine tune, but we will

have those ready by the October 10th Council Meeting and we do still intend to start the program by mid-October. Any other questions?

Mitchell: Committee, great discussion. Staff, thank you. Dick: I do want to give another round of kudos and thanks to my colleague Veronica Mosley and also Holly

Eskridge for having this progress to the point that it’s gotten as well as the partners. Mitchell: Holly, thank you. Veronica, thank you. Randy? Harrington: Thank you, Mr. Chair. If I could also recognize Ann Wall as well for her leadership. Driggs: Go Ann. Mitchell: Action Ann.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Harrington: Mr. Chair, the Committee needs a recommendation and if the Committee is so inclined, that’s the only

action required. Lyles: I am so inclined. Mitchell: Mayor Pro Tem, would you like to make the motion? Lyles: I would love to make the motion. Mayfield: Second. Lyles: And please call Mr. Leeper and tell him. Mitchell: It has been moved by Mayor Pro Tem that the Lyles Workforce Development Program, second by

Councilmember Mayfield. All those in favor, let it be known by saying aye. All: Aye. Mitchell: Any opposed? Thank you. Lyles: I say seriously though, I truly believe that we have to create economic diversity. We have to figure out how

to keep people who have barriers employed and this is really important. I’m looking forward to a real effort in this area and Kevin, thank you. You brought a new energy and new expertise. Ann helped keep us straight and Holly’s been with us, Veronica, thank you. I think that the opportunity to work is better than anything that you can do for anyone. If you can work, you can get your house; you can buy your house or rent your own apartment. Working is good for both the head and the heart and the soul.

Mitchell: Let the church say amen! Mayfield: Kevin, now that we’ve moved past and we’re moving forward with this and this isn’t something that’s

necessarily going to fall in your wheelhouse, but it might as you’re out having conversations. Unfortunately, there’s a number of conversations happening on social media today because of a development that we’re having in uptown Charlotte in the Epicenter in a business that’s in there and we have received more than one complaint over the years regarding minorities and access and entrance to certain facilities, so this particular one is a restaurant/night club/candy bar, but as we’re looking at these partners, I also want to make sure that we’re truly doing our due diligence because if you already have a history or record or a problem with discrimination where you have individuals that actually videotape where African-Americans were told that it is a private club and you have to have a membership and white patrons were told to just come right in and you also had a case of an African-American male that happened to be out with their white friends and the friends were told with that individual that was with them that none of them could enter. As we’re having these conversations, we need to make sure that we’re doing our due diligence, that we’re using any tax dollars as we work in the market and the market leads conversations, we need to make sure that those partners are partners that recognize and celebrate the diversity of our city because creating development and business for individuals to come in and then purchase and make money after we’ve made any investment or contribution to it, that opens the door and creates discrimination, it’s going to be a real problem. We’re going to have to figure out on our end what, if anything, we can do but as we’re starting something new, I would like to just encourage that we definitely do our due diligence with these partners that we’re going to be reaching out to and what is their current


relationship with the very diverse community that we have because Charlotte is minority-majority when you think about the Latino, the Asian-Pacific Islander, the African-American and our refugee community and the growth that we’ve had here. We need to make sure that the voices are at the table and that people are respected if tax dollars are going to be helping you grow your business.

Harrington: Councilmember Mayfield, thank you for sharing that. One of the things that I would offer to the Committee,

I’d be happy to refer or bring it to the Community Relations Committee to look into this, and I just want to acknowledge that.

Mayfield: I appreciate that. We’ve done that a couple of times, but that has not changed the climate. At the end of

the day, the reality is it is only when I affect your dollars that you pay attention. So, even though I would encourage people to know where you’re spending your dollars and spending your dollars with those businesses that support you, on our end I want to make sure we’re doing our due diligence to make sure to invest our ability that we do not let anyone slip through the cracks that is going to then move forward in the direction that is not at the core of what we’re attempting to do as a city.

Mitchell: Thank you. Committee and staff, we have a long day ahead of us. Committee, can we put item three on

our meeting in October and then go through items four and five? Is that acceptable? I don’t want to keep you all here until 4:30; we’re going to need a break before 5.

Driggs: Fine with me. Mitchell: Mayor Pro Tem? Lyles: Yes. Mitchell: Let’s go to item number four, the relationship we have with NLC and then we’ll finish with item number five. Harrington: Thank you, Mr. Chair and I’ll go ahead and turn it over to Mr. Dick to give an overview with Holly Eskridge. Equitable Economic Development Fellowship Program

Dick: Does everyone have a copy of this one-page document? Lyles: Yes.

Dick: What this essentially is, and I’m going to turn it over to Holly to provide any detail. I definitely want to thank

Ann for being a team member and guidance to us as we worked with National League of Cities and Urban Land Institute and PolicyLink. This is basically a one-page overview of the program that we’re participating in with the National League of Cities, Urban Land Institute and PolicyLink known as the Equitable Economic Development Fellowship. We also are going to be entertaining a representative or more from those agencies here in three weeks. They will be meeting various groups of the community including you all, but I’ll let Holly explain the rest.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Eskridge: We are fortunate enough to be one of six cities selected for the first ever Equitable Economic Development

Fellowship. You can see the other five cities listed below. When we looked at our project, we wanted to make sure we focused on this economic mobility issue that we’re all working on as a community and wanted to make sure that everything that we did went right back into that. When the partners, National League of Cities at the minimum will be here. Hopefully we’ll have somebody from ULI and PolicyLink too, but we know National League of Cities will be here for sure. We’re really looking at programmatic and policy recommendations. They’re coming into Charlotte to understand what’s happening here in our community in the four areas that are listed in those bullets: small business and entrepreneurship; capacity building; workforce development, which we’ve had a lot of discussion on today; business investment incentives; and, business corridor revitalization. I know those are really high level but right now, at this point in time, they really want to come in and understand what we’re doing here in Charlotte. Then from there, we can kind of start hammering out a little more detail about what the work plan in each of those areas will look like. They will be here October 10-11. As part of that effort to reach out in the community, we want them to have face-to-face meetings with the Committee, so we’re working with Mindy and Robin right now to get those scheduled. It’ll be the afternoon of the 10th and then at the Dinner Briefing that night, they will also meet with the entire Mayor and Council, full Council, just sort of a quick update on what this initiative is and what we’re doing in Charlotte and what NLC hopes to accomplish on those two days that we all hope to accomplish when they’re here. We will have a full agenda for you all so you can see all the partners that are involved and what meetings will happen. We’re just finalizing that this week, but it’s looking really robust. I think there’s a really great, tremendous interest in the entire community as a whole in this initiative, so we’re very excited about it.

Mitchell: Holly, first of all thank you. I want to poll the Committee, is it better to have one-on-one 30 minute

meetings or are you flexible that maybe some of the Committee Members can do two at one time on October 10th and 11th? Is there some flexibility?

Eskridge: Excellent questions. We actually identified two timeslots. Mitchell: Okay. Eskridge: I’ve got a couple of people scheduled now. The timeslots are 3:30 to 4:00pm and then there’s a 4:15 to

4:45pm. We did it as close up to your Dinner Briefing. We didn’t know what you had going on in your lives outside of the City as Councilmembers elected officials that day. We do have those slots.

Eiselt: Holly, as part of that process, the meeting with staff to engage discussions around those four bullet points, can we also specifically include the NorthEnd and the Smart District in that conversation?

Eskridge: Sure, absolutely. In fact what we can do, there’s a part of the day where we’re trying to build in some

corridor tour kind of element, so we’ll make sure that that gets done so they can physically see the area as well.

Eiselt: Great, thank you. Driggs: Holly, is this being coordinated with our Economic Opportunity Taskforce? We were actually, I think,

funding that. Similar objectives, right? So will they be part of these conversations? Eskridge: Partners that are on that taskforce will be, but that’s a great point. This is why we’re bringing it to you

guys. It’s fantastic feedback. We will look at including the Opportunity Taskforce, the Chairs. Driggs: It’s good for these guys to know about it.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Eskridge: Yes absolutely. Dick: One of the things we did, our first element of participation in this was a presentation that we made out in

Portland with the other five cities. We actually included a lot of the information that the Opportunity Taskforce had collected in our presentation. The other meetings they’ll be having while they’re here are with our workforce development partners, so Goodwill, Urban League, Community College, Charlotte Works, many others, and business development partners, many of whom are represented on the taskforce. But, like Holly said, at least have the chairs there and as many other members as possible. We have a very packed two days or day and a half where they get to meet as many members of the community as possible and see key projects.

Mayfield: There’s the neighborhood corridor and revitalization component to this, Are you already working with

Neighborhood and Business Services in light the fact that we just had the announcement at our Housing and Neighborhood Development Committee meeting last week, the revitalization program where we have pilot of Camp Greene as well as Lincoln Heights where we’re going in and doing targeted neighborhood revitalization of 20-60 homes in areas where you’ve seen the impact of gentrification and trying to grow a balance. I think what I’m hearing from my colleague is that we need to make sure that we’re connecting all our dots opposed to have these several conversations going on simultaneously and the funds not leveraging as strongly as they could. I wanted to make sure that you all were aware that Neighborhood and Business Services is doing some pilot work. We just signed off on it I think this past Saturday is when we went out into the communities and made the initial announcements but there’s a survey component, there’s a lot of things that tie right into what I just read that this grant will be focusing on.

Dick: We’ll make sure everything’s in here. Mitchell: Thank you. Committee, just as a recap, if it’s better for our schedule for two of us to meet during a certain

period of time, please, because personally, I’d like to get all of our interviews done before the Dinner Briefing. I would hate to go in the Dinner Briefing with some of the Committees have not engaged with them, so let’s try to get all our briefing stuff before.

Dick: We have two slots, one slot for two and the other slot for three. That’s the way it will work. Eskridge: Robin and Mindy are on it. They’re working on it right now. Mitchell: Thank you. Randy? Harrington: I think that concludes our meeting. I have to talk about future meeting topics. Mitchell: Okay. Harrington: Next Committee meeting is October 13th. The tentative Pearle Park, we did outline two different options

there in October but it’s possible that piece would come back on the 13th. Then, we’ll plan to bring back the Focus Area Plan and have some more conversation around that piece. We may have another topic, we can bring back.

Mitchell: Staff, Committee, thank you. Driggs: Move to adjourn.

Economic Development & Global Competitiveness Committee Meeting Summary for September 19, 2016 Eiselt: Second. Mitchell: All those in favor stand up. Mayfield: Alright, now I need to cut this cake and you all need to take some. Meeting adjourned at 4:12 p.m.

City Council Economic Development & Global Competitiveness Committee

Monday, September 19, 2016 at 3:00pm

Room 280 Committee Members: James Mitchell, Chair Vi Lyles, Vice Chair Ed Driggs Julie Eiselt LaWana Mayfield

Staff Resource: Randy Harrington, Management & Financial Services

AGENDA

Distribution: Mayor/City Council Ron Kimble, Interim City Manager City Executive Team

I. Midtown/Pearle Street Park Redevelopment Project – 40 minutes

Staff: Pat Mumford, Neighborhood & Business Services; Todd DeLong, Neighborhood & Business Services Guests: Pappas Properties/Terwilliger Pappas Action: Staff and representatives from Pappas Properties/Terwilliger Pappas will provide an update on the status of project. This was previously brought to this committee on April 14, 2016.

II. Workforce Development Pilot – 15 minutes Staff: Kevin Dick & Veronica Mosley, Neighborhood & Business Services Action: After discussion at the ED & Global Competitiveness meeting on September 8th and subsequent discussions with Committee members that were not present on September 8th, staff is recommending approval of the workforce development pilot program design that was presented at that meeting. If approved by the Committee, this will be brought forth to the October 10th City Council Meeting. Revised Attachments Reflective of Meetings and Discussions Since September 8 th Meeting

III. FY2018 ED & Global Competitiveness Strategic Focus Area Plan – 20 minutes Staff: Randy Harrington, Management & Financial Services & Patrick Mumford, Neighborhood & Business Services Action: Staff will continue their dialogue with the Committee and receive feedback on developing the FY2018 ED & Global Competitiveness Strategic Focus Area Plan. Attachments

IV. Equitable Economic Development Fellowship Program Update – 10 minutes Staff: Kevin Dick and Holly Eskridge Action: Staff will provide an update on the Equitable Economic Development Fellowship Program that includes the participation of City of Charlotte staff from the NBS Economic Development Division and the City Manager’s Office.

V. Future Meeting Topics – 5 minutes Staff: Randy Harrington, Management & Financial Services

Topics Meeting Date Lead Department Amateur Sports Development Future discussions (TBD) Neighborhood & Business Services Applied Innovation Corridor Strategy & Planning

Discussions (TBD) Neighborhood & Business Services

Business Advisory Committee Outreach Efforts

On-going as needed Neighborhood & Business Services

Business Investment Grant Revisions On-going as needed Neighborhood & Business Services Charlotte Business INClusion Update On-going as needed Management & Financial Services Eastland Mall Redevelopment On-going as needed Neighborhood & Business Services High Growth Entrepreneur Strategy On-going as needed Neighborhood & Business Services Memorial Stadium Discussions (TBD) City Manager’s Office Pearle Park Discussions (TBD) Neighborhood & Business Services Workforce Development (previously referred to as apprenticeship and pre-apprenticeship)

On-going as needed Neighborhood & Business Services

VI. NEXT DATE: Thursday, October 13, 2016 at 12:00pm, Room CH-14

9/20/2016

1

Charlotte Regional Realtor Association Property Redevelopment & Public

Infrastructure Improvements

Economic Development &

Global Competitiveness Committee

September 19, 2016

*Preliminary illustration from Park & Rec

Background

• April 18, 2016: ED&GC Committee

– Presented overview of development

and public improvements

• Summer 2016:

– County, City, Charlotte Housing

Authority (CHA), Charlotte Regional

Realtor Association (CRRA), Pappas

Properties collaboration:

• Park plan revisions

• Parking accommodations

• Pedestrian & bicycle connectivity

2

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2

Development Funding

• New CRRA office building – funded by CRRA

• New mixed-use development – funded by Pappas Properties

& Terwilliger Pappas

• Park improvements – funded by County via proceeds of sale

of remnants to Pappas Properties & Terwilliger Pappas

• New public infrastructure – financed and constructed by

Pappas Properties & Terwilliger Pappas, to be reimbursed

via Tax Increment Grant (TIG) on new development

3

• Grants are made on a reimbursement

basis only

• Applicable Financing Categories:

– Infrastructure investment

– Public asset purchase

– Gap financing

• Grant Terms:

– 45% or 90% of incremental new property

taxes up to 10 years depending on project

need and priority

• Capacity:

– Aggregate of all projects is limited to 3.0%

of the annual property tax levy of any

given year.

4

TIG Policy Framework

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3

Project Components

• Tax Increment Grant

– Land exchanges

– Approximately $4.4 million of public infrastructure

improvements

• Other:

– Parking

– Greenwood Cliff abandonment

– Rezoning

5

Land Exchanges

Before After

• Housing and Urban Development approval required for CHA

• Ledger transactions with County for park land and right-of-way

6

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4

Tax Increment Grant

• Maximum grant amount: $4.4 million

– 6.0% interest cost of carry

• 45% of City & County incremental property taxes

• 10 year term (or full reimbursement, whichever comes first)

• Proposed tentative private investment of $204.5 million

– Leverage Ratio - 1:44

• Over the term, City and County will receive 55% of the new

property tax revenue: $8.6 million

– City: $3.2 million

– County: $5.4 million

• Net incremental property tax received by City: $12.6 million

over 20 years

7

Other Project Components

• Parking:

– Peak parking demand: 165 spaces

• Youth Soccer: 140 spaces

• Youth Baseball: 25 spaces

• Peak demand occurs a total of 40 hours per year

– Total parking supply: 279 spaces

• On street: 133 spaces

• CRRA: 50 spaces

• CHA potential: 96 spaces

• Greenwood Cliff abandonment

• Rezoning

8

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5

Anticipated Next Steps

• October 4, 2016: Board of County Commissioners will

consider:

– Park plan

– Land exchanges

– Remnant parcels rezoning authorization

– Tax Increment Grant

• October 10, 2016: City Council Dinner Briefing

• October 13/27, 2016: ED&GC Committee meeting(s)

• November 14, 2016: City Council decision on TIG &

Greenwood Cliff abandonment

• TBD: Rezoning

9

Neighborhood & Business Services – Economic Development Division Workforce Development Pilot Proposal Staff Resource (s): Kevin Dick & Veronica Mosley The City of Charlotte, Goodwill Industries of the Southern Piedmont and the Urban League of Central Carolinas have partnered to propose a pilot program to address labor market shortages and to increase employment among individuals with multiple barriers and underemployment of residents with multiple employment barriers. The construction workforce, as well as the workforce in industries related to cabling is facing aging issues and skill shortages, both of which have a detrimental effect on the progress of residential and industrial construction.

• In comparison to an expected 1.3 percent increase in total employment for 2020, construction industry employment is slated to increase by 2.9 percent;

• Additionally, the construction labor requirement is continually rising, but the labor requirement for general labor in other sectors is sliding downward;

• By 2020, the construction sector is expected to contribute to 4.5 percent of the total employment, up from 3.9 percent in 2012;

• An April 2016 Wall Street Journal article ranked “other construction” and “other installation, repair and maintenance” as 9 and 10 as the occupations that will face the greatest labor shortages in the U.S. in the next 10 – 15 years

Additionally, the unemployment rate in Mecklenburg County through June 2016 was 4.5%1. However, the unemployment rate among many individuals with multiple barriers to employment may be as high as 20%.2 Barriers may include limited educational, social, soft skills and previous involvement with the criminal justice system. The program developed by the partnership seeks to address the unemployment needs of residents by offering a variety of training classes that will include commercial and residential construction, highway-related construction, and internet technology. The goal of the program is to enroll a minimum of 40 participants for up to an 18-month period. The program objectives are for participants to complete training, be placed into training-related career paths and to provide opportunities for more positive outcomes, such as job retention, promotion(s), pre-apprenticeships, and apprenticeships. Program participants will be identified through recruitment efforts with community partners, as well as Goodwill and Urban League pools of customers. Participants will have linkages to supportive services throughout enrollment in the program. Supportive services will be coordinated utilizing a case management approach by the training providers and partner agencies. Supportive services may include transportation assistance, uniform allowances and/or vouchers to purchase tools required for classroom training. The budget for this pilot initiative is $250,000 in CDBG funds. The average cost per participant is estimated to be $6,250. Such a cost is within the range of programs solicited by the United States of Labor for serving those with criminal backgrounds or others with multiple barriers.3 Neighborhood & Business Services staff will coordinate the development of business advisory councils with Goodwill and the Urban League for the training industries identified. Business advisory councils will consist of agency representatives who advise on curriculum and client pre-screening during the course of the program and

1 Bureau of Labor Statistics 8-16

2 Quality of Life Explorer

3 https://www.dol.gov/grants/SGA-DFA-PY-12-06.pdf

who represent companies that will be potential employers of graduates. Other potential community partners include:

Charlotte Works – NC Works Career Centers- they will refer applicants to training programs and assist with job placement;

Charlotte Housing Authority – they will refer applicants to training from pool of residents that may be eligible;

Central Piedmont Community College – they will offer basic skills training through Way2Work and Pathways program;

The Center for Community Transitions – they will assist participants with criminal records towards healthy and productive lives.

Potential corporate partners may include Barton Malow, R.J. Leeper Construction, Sugar Creek Construction, PowerWorks Electric, Rogers Builders, City departments and their contractors, as well as Business Investment Program grant recipients and their contractors. Many of these entities have indicated an interest in being employers and may have representatives that serve on business advisory councils.

11/30/2016

1

Workforce Development Training Pilot

Economic Development &

Global Competitiveness Committee

September 19, 2016

Presentation Overview

• Purpose of the Workforce Development Training Pilot

• Partner Training Agencies

• Targeted Participants

• Training Outline

• Expected Program Outcomes

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2

Workforce Development Training Pilot Purpose

• To serve the needs of businesses in high growth areas by supplying a talented labor force;

• To help offset labor marker shortages in the construction and internet technology industries;

• To operationalize an initiative that has been stipulated in the Economic Development and Global Competitiveness (EDGC) Focus Area Plan;

• To address Charlotte’s economic mobility gap by increasing employment among people with multiple barriers to employment, which may often be as high as 20% in Charlotte. (Quality of Life Indicator Report)

Training Providers

• Goodwill Industries of the Southern Piedmont will provide commercial & residential construction related training.

• The Urban League of Central Carolinas will provide highway related construction and internet technology training.

11/30/2016

3

Possible Public, Not-For-Profit and Corporate Partners

• Charlotte Works-NC Works Career Centers

• Charlotte Housing Authority

• Central Piedmont Community College

• The Center for Community Transitions

• R.J. Leeper Construction

• Barton Malow Construction

• Rogers Builders

• PowerWorks Electric

• Sugar Creek Construction

• City Departments and their contractors

• Business Investment Grant recipients and their contractors

Training Program Outline

• Enroll 40 participants

• Up to 18 months of training, placement and retention activities

• Training 3 – 6 months

• Placement 0 – 6 months

• Retention – 6 months

• Life and soft skills training

• Intensive case management

• Job placement & retention assistance

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Curricula and Program Design

• Industry specific occupational skills training programs (curriculum developed and monitored by business advisory councils and other industry experts).

• Intensive case management

• Time management

• Stress management

• Conflict resolution

• Computer and employability skill classes will be offered.

Expected Program Outcomes

• 80% of program participants will complete program training.

• 70% of program participants will obtain employment within six (6) months of training completion.

• 75% employment retention rate of those employed after six (6) months.

• 75% of participants will complete computer skills competency.

• Increase the number of participants with bank accounts by 50%.

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Program Cost

• The approved FY17 Budget includes $250,000 in CDBG funds to implement this pilot workforce development initiative.

• Significant levels of leverage being brought to the program by providers and community partners

• Opportunity Cost – either 2 housing rehabilitation projects or additional support provided to the Out of School Time program (an additional 209 elementary school students could be served)

Why Is This Initiative Strategic and Meaningful for Charlotte Businesses and Residents?

Directly connects to 4 of 6 Mayor-Council Strategic Objectives

• Ensures residents and visitors are safe

• Builds and preserves vibrant neighborhoods

• Provides economic opportunity to increase mobility

• Helps connect people and places by foot, car, bike and transit

• Also – increases the tax base and increases employment among those with multiple barriers

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6

What’s Next?

Proposed Next Steps Include:

• Goal would be for October 10 Council Meeting

• Fine tune details among providers and staff

• Start Program by Mid-October

“Charlotte will strengthen its position as a city of

prominence in the global marketplace by building upon its

competitive advantages.”

To achieve its vision, the City must leverage partnerships to seize new opportunities in a global

marketplace. The City’s economic development strategy will focus on:

Developing a global logistics center at Charlotte Douglas International Airport,

Enhancing relationships with our universities and education system to support and commercialize

research and technology,

Targeting industry growth in high-potential sectors, capitalizing on Charlotte’s unique profile,

Developing neighborhoods and business districts to create places attractive for people to live and

businesses to invest,

Encouraging business expansion by streamlining the regulatory environment, and

Preparing youth and young adults for employment success.

Focus Area Initiative Strategic Priority Description

Facilitate the growth of small businesses

and high growth entrepreneurs in our

community.

3C. Support and grow small, entrepreneurial businesses, especially

businesses owned by women and minorities through City contracts,

Business Investment Grants, and access to information and

resources.

Promote the holistic development of

targeted business districts and

neighborhoods.

3C. Support and grow small, entrepreneurial businesses, especially

businesses owned by women and minorities through City contracts,

Business Investment Grants, and access to information and

resources.

2B. At the Eastland Mall site, create a new community through

private and appropriate public investment that integrates into and

enhances the surrounding areas.

Work with universities and the education

system, local industry leaders, and other

economic development partners to drive

global competitiveness, job creation, and

job retention in the energy, finance,

information technology, logistics, and

advanced manufacturing sectors.

3A. Create more opportunities for people with employment

challenges by leveraging City workforce contracts and Business

Investment Grants.

4C. Work with the private sector, nonprofits, and colleges and

universities to develop the “Innovation Corridor” using creative

“smart city” technologies.

Introduce youth and young adults to

employment opportunities with potential

for long-term growth and development.

3D. Ensure that young people have work opportunities through the

Mayor’s Youth Employment Program as one part of a public-private

system of youth employment and mentoring.

3B. Facilitate with our partners the availability of internships and

apprenticeships, as well as the awareness of employment

opportunities, job fairs, job training, and job assistance.

Grow Charlotte’s tourism industry through

amateur sports development and

programming.

4F. Support growth of tourism and professional/amateur sports

Economic Development & Global Competitiveness

Cross-Walk of Focus Area by Strategic Priority

DATE: September 19, 2016

TO: Economic Development and Global Competitiveness (EDGC) Committee

FROM: Kevin Dick, Economic Development Director

RE: Equitable Economic Development Fellowship

The City of Charlotte has been selected to participate in the National League of Cities (NLC), PolicyLink

and the Urban Land Institute’s (ULI) first-ever Equitable Economic Development Fellowship. The

Equitable Economic Development Fellowship is a two-year, $1 million effort to help equity,

transparency, sustainability and community engagement become driving forces in local economic

development efforts. Boston, Houston, Memphis, Milwaukee and Minneapolis were also selected to

participate in the inaugural year of the fellowship.

The City of Charlotte’s project will focus on our community priority of ensuring economic mobility for all

residents through programmatic, tactical and proposed policy initiatives that would help improve

workforce development, small business development and neighborhood corridor revitalization. On

October 10 and 11, a project team that includes representatives from NLC, ULI and/or PolicyLink will be

visiting Charlotte and meeting with elected officials, city staff and community partners to engage in

discussions around:

small business and entrepreneur capacity-building;

workforce development;

business investment incentives;

business corridor revitalization.

Meetings with EDGC members are being scheduled for the afternoon of October 10 and the project

team will provide a brief presentation about the Equitable Economic Development Fellowship to the

Mayor and City Council at the Dinner Briefing that evening. The agenda with meeting descriptions and

participants will be provided prior to October 10.

committee information attachmentscharlottenc.gov/citycouncil/focus-areas... · economic development...

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