SA Centro Partnership presentation


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SA Centro Partnership presentation

  1. 1. Economic and Community Council Committee Centro Partnership December 14, 2009
  2. 2. Background Downtown Assessment – July 2007 – Facilitated by Michael Stevens, ED Capitol Riverfront Business Improvement District IDA Advisory Panel – May 2008 – Representatives from Phoenix, Washington D.C., Arlington, Fort Worth, and the CEO of the IDA – Requested to identify the best downtown management structure to oversee, coordinate and facilitate economic development and redevelopment plans in the downtown. 2
  3. 3. Background In January 2009, David Feehan, President of Civitas Consultants LLC, was contracted by the City to expand IDA Panel recommendations and propose the structure and management of a new organization and assist with its implementation. In June 2009, Dave Feehan provided a draft proposal: The Centro Partnership – A New Beginning for Downtown San Antonio. Since June, Dave Feehan and City staff have briefed various organizations and stakeholders. 3
  4. 4. Proposal Create a public private partnership to oversee and facilitate development and revitalization in the center city guided by a unified vision. – Through interviews with nearly two dozen downtown and community leaders, Feehan found no apparent shared vision for downtown San Antonio. A vision process should occur as soon as possible. The new, shared vision should then be incorporated into the goals, objectives, and programs of the new organization called the Centro Partnership. 4
  5. 5. What is the Centro Partnership A public-private partnership created by the City of San Antonio, Bexar County, and the Downtown Alliance to oversee and facilitate development and revitalization in the center city. An umbrella organization incorporated as a 501 c 6 guided by a shared vision, committed to a focused mission, and managing an expanded array of new tools. A consolidation of organizations and functions designed to maximize effectiveness and efficiency. 5
  6. 6. Organization Chart Centro Coordinating Programming Partnership Council Council 501 (c) 6 Residential, Downtown Centro San Community Parking and Business Alliance Antonio Development Transportation Recruitment and 501 (c) 6 501 (c) 4 Corporation Management Retention 501 (c) 3 *The boxes highlighted in red are new organizations and/or program elements. 6
  7. 7. Centro Partnership Staff and manage the functions of all program elements. Implement the vision for our center city. Manage existing corporations and their respective Boards which will continue to exist as subsidiaries of the Centro Partnership. The boards of each of these entities continue to exist because of legal requirements. However, the number of board members on each board will be minimal and the boards will meet only as legally required and or necessary. 7
  8. 8. Centro Partnership The board of directors of the Centro Partnership will reflect the two-fold nature of its mission: management, marketing, and maintenance of downtown San Antonio’s public spaces; and downtown economic development. The board will be a “CEO-level” board. Each entity should be represented by the highest-level leadership or by a key decision-maker in the entity he or she represents. – Board members from the private sector should be company owners, chief executives, or highest-level local officials (for example, hotel general managers) whenever possible. – The public sector should be represented by the Mayor of San Antonio, the City Manager, the Bexar County Judge and a representative selected by the San Antonio City Council. A nominating committee composed of representatives from the City of San Antonio, Bexar County, and Downtown Alliance will nominate the 15-25 member Board of Directors. 8
  9. 9. Centro Partnership Downtown Coordinating Council – The Downtown Coordinating Council will not be incorporated and will have no budget; it will be staffed by the Centro Partnership CEO and will take appropriate action on major projects, programs and initiatives. Downtown Program Committee – The Downtown Program Committee will serve as a coordination mechanism to ensure seamless cooperation between those organizations having substantial interests and responsibilities in downtown San Antonio. 9
  10. 10. Program Elements Downtown Alliance – Advocacy and marketing Centro San Antonio – Operations and maintenance Community Development Corporation – Real estate acquisition Residential, business recruitment and retention Parking and transportation management 10
  11. 11. Downtown Alliance & Centro San Antonio Downtown Alliance will continue to serve as the membership, marketing, communication and advocacy entity of the Centro Partnership, and Centro San Antonio will continue to contract with the City of San Antonio to provide supplemental services in the downtown public improvement district. Downtown Alliance’s current programs, mainly in communications, education and marketing, and Centro San Antonio’s maintenance, landscaping and ambassador services will form the core of programs offered by the Centro Partnership. – There will be a number of new programs added over the first three years, and some current programs may be reduced or discontinued. 11
  12. 12. Community Development Corporation Downtown Alliance created a 501 (c) 3 nonprofit community development corporation to assist with inner-city projects, and that corporation still exists. This proposal recommends keeping that corporation alive and intact, but repositioning it to serve as the real estate arm for the new Centro Partnership. The CDC can be used for acquisition of sites, land- banking for future development, and partnering with for profit or nonprofit developers when deals would otherwise not occur. The CDC will not compete with private sector developers. 12
  13. 13. Residential, Business Recruitment and Retention This proposal recommends a carefully crafted and designed, focused and well-funded program to create a critical mass of outstanding residential and retail offerings in the downtown area. Through this concerted and well-coordinated effort, buildings will be brought up to standard, tenant incentives will be defined and implemented, and a marketing campaign for the shopping/dining district will be launched. In addition, the Centro Partnership will partner with the City, Chamber and others to develop a strong business attraction/retention program focused on office tenants. 13
  14. 14. Residential, Business Recruitment and Retention This program element and the proposed new economic development corporation will be very different, and in the few instances where they might overlap, collaboration and cooperation will be required. The regional economic corporation will be chiefly concerned with recruiting major employers to the San Antonio region. – Where they locate within the region will be a secondary concern at most. The Centro Partnership will focus exclusively on the center city, and will seldom be involved in major employer recruitment. Most of the Partnership’s time and resources will be spent on managing, marketing and maintaining downtown San Antonio. It will be involved in issues like residential development, parking and transportation, retail attraction and retention, social issues like homelessness, safety and security, and maintenance of public spaces. 14
  15. 15. Parking and Transportation Management This proposal recommends that the Centro Partnership begin negotiations with COSA to assume overall management and coordination of the downtown parking system. This program element could also coordinate various forms of transportation serving a specific area, such as car and van pools, circulator and shuttle buses, street trolleys, and of course, parking. This has proven successful in other cities such as Memphis, Nashville and elsewhere. 15
  16. 16. Parking and Transportation Management If the City and the new Board agree that the Centro Partnership should manage the City’s parking system, a contract will be negotiated by City staff for review and approval by City Council and the Centro Partnership Board’s If this transfer of parking management occurs: – City will still own all of the assets, – City Council will annually approve the budget for the parking system, – City Council will approve any overall rate increases, and – City Council will have the right to opt out of the contract. 16
  17. 17. Budget The Centro Partnership would derive the bulk of its income from the assessment district (PID), which could be expanded in the future to incorporate expanded center city boundaries. It would inherit and expand the membership program currently employed by the Downtown Alliance, and could earn additional revenues through managing city contract services and through revenue-generating festivals and events. Additionally, the FY 2010 Budget includes a one-time $300K program expense. The $300k is a combination of $207,797 in cash and the remainder in in-kind services. It is important that the Centro Partnership become self sufficient in FY 2011. 17
  18. 18. Budget Revenues FY2010 FY2011 FY2012 Centro SA (PID) $2,554,583 $2,453,041 $2,352,046 COSA Grant $207,797 - - *Parking Management - $500,000 $500,000 **Management Contracts $31,000 $255,000 $255,000 Earned Income $85,000 $107,000 $129,000 Membership $180,000 $210,000 $250,000 Sponsorships $31,000 $40,000 $50,000 Total Revenue $3,089,380 $3,565,041 $3,536,046 *Assumes CPSA management of downtown parking beginning FY2011. **Assumes potential management duties regarding HemisFair Park Area Redevelopment Corporation, Midtown TIRZ, River North TIRZ. 18
  19. 19. Budget In FY 2009, the City of San Antonio transferred approximately $500,000 to the general fund to pay for the salaries and other indirect costs associated with the management of the parking system. If the City chooses to transfer the management of the parking system to the Centro Partnership, the City would no longer need to transfer these funds to the general fund, Centro Partnership would charge the Parking Enterprise Fund a yearly management fee. 19
  20. 20. Partners The Centro Partnership concept has been presented to the numerous stakeholders to include our public partners, neighborhood associations, developers, and other downtown organizations. The City of San Antonio has received numerous letters of support endorsing the Centro Partnership. SARA Frost Bank Hixon Properties SAGE Tourism Council Greater Chamber of Commerce AIA Centro San Antonio HemisFair Park Area Redevelopment Corporation Reata Downtown Alliance Lou Fox, James Lifschutz, Michael Westheimer Pearl Brewery Teeple Partners The City of San Antonio, Bexar County, and Downtown Alliance have formulated a work group that will assist with the required next steps for the Centro Partnership concepts. 20
  21. 21. Next Steps Staff is requesting that ECDC endorse the creation of a public private partnership that is focused on the development and redevelopment of our Center City. Staff is also requesting that this concept be placed on a January 2010 City Council Agenda for City Council to take action on a resolution of support. Upon approval of a resolution of support, the Centro Partnership will be incorporated and the nominating committee will appoint the board of directors following incorporation (February 2010). An interlocal agreement will be negotiated between the City, County and the Centro Partnership that clearly identifies the program elements and details the responsibilities of each partnership entity (March 2010). All contracts between the City of San Antonio and the Centro Partnership will require City Council Action and Approval. 21
  22. 22. Economic and Community Council Committee Centro Partnership December 14, 2009