TOWN COUNCIL REPORT. To:

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1 To: From: TOWN COUNCIL REPORT Honorable Mayor Jennie Fancher and Avon Town Council Susan Fairweather, Director of Economic Initiatives Virginia Egger, Town Manager Date: December 9, 2014 Agenda Topic: Review of the Economic Development Program The purpose of the Tuesday, December 9 th work session with Council is to review the background of the Town s current economic development strategy, specifics accomplished to date, and work planned for the next two years. A staff presentation will begin the work session followed by the important step of ensuring Council, with its new membership, is supportive of the direction and investments put in place since early We look forward to the session. A comprehensive report on the Town of Avon Economic Development Strategy is attached. Page1

2 Town of Avon Economic Development Strategy Report to the Town Council December 9, 2014 Page2

3 BACKGROUND February, 2013 The Town Council adopted Avon s first strategic plan. The Strategic Plan set forth Avon s economic development strategies and purposes. Staff reports were filed to update Council on the economic development strategy achievements, and the Strategic Plan was updated when east Avon properties were acquired by Hoffmann Commercial Real Estate, and prior to the adoption of the 2014 and 2015 respective budgets. The , 1 st Quarter Report for 2014 is provided as Exhibit A. The Strategic Plan, which governs the current economic development work, has been distributed previously to Council. May, 2013 A staff report is completed which includes research on municipal economic development organizations, with the following summary findings: Municipal Economic Development Programs 1. Typical Structure -One (1) Director/Manager on Town Staff: -Reports directly to Town Manager -Liaison & coordinator to Econ. Dev. Board(s) -Position is funded by General Fund -Either in Finance or Community Development Department 2. Range of Purposes -Advise Town Manager &/or Council -Research and Reporting - Demographic & Economic Data -Sounding board for business community -Grant Funding for events -Funding for business attraction/retention/ redevelopment -Regional Coordination efforts -Manage Work Plan -Marketing & Special Events 3. Funding -General Revenues -Lodging Tax (i.e. Breckenridge) -Business License Fees -Daily Lodging Fee -Special Districts Recipe for Success: -Devoted, supportive Town Council -Dedicated funding -Capitalization and alignment with Resort -Strong, consistent Brand -Quality Special Events -Consistent marketing (see Brand) -Aggressive Marketing Research also found that municipal economic development programs do not serve as or include Chamber of Commerce type services but rather interface with one or more regional and/or State economic development organizations and downtown chambers to achieve goals. A review of the State of Colorado Blueprint, Northwest Colorado Council of Governments, Eagle County Economic Development Plan, Vail Valley Partnership, Vail Valley Foundation and Town of Vail economic development goals and programs was conducted to align Avon s programming with these agencies, when appropriate. (See Exhibit B). As a result of this work, at Council s direction, during the last 18 months, staff has moved forward on initiatives to begin to build the foundational elements required for a strong, healthy and sustainable economic development program for the near term and long term future. Page3

4 ECONOMIC DEVELOPMENT: FOUNDATIONAL ELEMENTS The importance of having a strategic economic development plan brings focus to what elements are needed for a sustainable program. The strategy aligns resources with the needed steps for success. When assessing Avon s readiness for an economic development program, it was obvious that a foundation would need to first be constructed for the larger program of attracting and supporting special events, and to enable successful business development and retention. It is believed these investments are key to building a strong relationship between the Town and the Town s business community. The foundational accomplishments are as follows: The Avon Brand: The development of a Brand Platform, Logo and Tagline was a paramount first step for Avon. The Town brought together an ad hoc Economic Development Group for this successful work. Exhibit C provides the brand platform, which is today used to guide all economic development efforts. Director of Economic Initiatives and establishment of Office of Economic Development: Avon s first director began in February, The Rec Center s Special Events Supervisor was relocated to the Office, which is a part of the Community Development Department, but directly reporting to the Town Manager. Funding is from the General Fund. Data and Metrics for Guiding Economic Decisions and Outcomes: MuniRevs - Avon becomes the first community in Colorado to fully implement MuniRevs a powerful software system, which brought to the Finance Department an electronic billing and collection system for sales and lodging taxes. - Implementation of MuniRevs provides data and metrics on special event investments - Businesses are provided training and responsive communication over multi-month implementation period - Mandatory gross sales reporting on specified days isolates special event revenues for measurement of ROI (Exhibit D) DestiMetrics This omnipresent ski resort reporting software provides lodging data: actual historic data and forecasting data of lodging reservations, average daily occupancy and room rates. Comparative data across Colorado and national ski markets is provided (Exhibit E). Development of Business-like Practices and a High Performance Culture at Town Hall: Stipulated as a Tier 1 priority in the Strategic Plan, through training and development of a Town Staff Culture Statement, the business practices of the town staff is client-focused, solution-oriented and committed to best practices. (Exhibit F) Establishment of Formal Process for Community Grant Applications, Criteria for Funding and Grant Award Monitoring: To create a fair, transparent and open process for Town funding of community grants, a formal process was developed and implemented. In the first year, town staff solely served as the review and recommendation body, with the second year citizens joined the team. In year three, a larger ad hoc community grants committee will participate in the process, which results in a recommendation to Town Council.(Exhibit G) Page4 Avon Recreation Center: Business Plan: Seen as a foundational element, a review of the Recreation Center business revealed the absence of a business plan and strategy for providing an exceptional facility and programs for all Avon populations, with greater cost recovery. Concurrent with the development of the business plan, improvements have been made at the Rec Center with facility upgrades and new programming

5 - Renovations including locker/shower remodel, yoga studio and weight room - Continue remodel investments including bouldering wall, reception area remodel and pool slide update - Business development includes SWOT, rebranding/look (Exhibit H) - Identify opportunities for growth/profit - [Note during the last two years, significant staff time was devoted to preparing a report to Town Council on the expansion of the Recreation Center.] Investment in Infrastructure & Services: A successful economic development program for the Town of Avon requires support for sustaining, upgrading and maintaining Avon s capital assets. In addition, venues for special events, and important places for community activity/gathering are needed. Expected public services to be provided and funded in a sustainable manner. Over the past 18 months, significant investments and progress has been made in Avon to provide these important foundational elements - Main Street Mall & Possibility Plaza - Performing Arts Pavilion - New Town Hall/Skier Building - Eagle River Regional Trail - West Avon Preserve Hiking/Mountain Biking Trails - Avon Road Landscape, Lighting and Bike lane Improvements; Roundabout 4 AWSC monument - Improved signage and way finding - Holiday light improvements - Post Boulevard Landscape and Lighting Improvements Deferred Infrastructure Maintenance Improvements - Expanded Transit Service - Multi-modal Transportation & Parking Plan - Destination Jump, Splash, Learn Playground - Recreation Center Social Ice Rink / Summer Activity Center Page5

6 ECONOMIC VITALITY: SPECIAL EVENTS The Avon Economic Development Strategy understands the role of the municipality in supporting business activity through ensuring special events occur in Avon. The importance of Avon as a community is emphasized in the solicitation and selection of special events. Events must foremost be accessible to Avon residents and in keeping with the Avon brand. A diversity of special events is important so that an array of businesses benefit from Town supported festivals, concerts and the arts over the course of the year. When measured by sales tax, Avon s 4% general sales tax is the single largest revenue source of the Town, accounting for 44.3% of operating revenues. An additional 6% comes from lodging taxes. (Source: 2015 Budget) Avon s tourist economy is seasonal, with sales collections distributed as follows: Winter Months - 59% Summer Months - 24% Off-Season Months - 17% The special event investment plan focuses on building a stronger year-round economy by reducing economic seasonality and growing the summer economy. The building of a special events program is the number one priority of the Economic Development Office. Signature Special Events A signature event is one which is synonymous with Avon. Salute to the USA is an example. The economic development program seeks to build additional signature events in Avon over the next 5 10 years. Seed Funding for Signature Special Events: The business model for developing signature special events is based upon attracting qualified, passionate private sector producers. These generally small and medium sized business owners, are helped to establish special events either on the Pavilion or Main Street Mall through multi-year support funding to assist the right special events in gaining notoriety and thereby profitability through ticket sales and sponsorships. The goal is that signature events can be produced at profit levels that need no on-going financial support. - Funding for seed support is from General Fund revenues - Funding in 2014 was $180,000; with 2015 reserved at a $300,000 level - All signature events and funding are approved by Town Council Signature Events at the Pavilion: - Up to eight major multi-day events each year at the Pavilion, in addition to Salute to the USA - Five events already started: WinterWonderGrass Reds, Whites and Brews Flavors of Colorado Sustainable Film Festival (Labor Day plan for Pavilion in next three years) Man of the Cliff - Additional events will be solicited through a Request for Qualifications: Diversity preferred Shakespeare Festival Writers Conference Latin Music Festival Other per producer interest Page6 - It is critical to attract the right signature events and to also allow programming in the park for other important sports events and free, open usage (Exhibit I)

7 Signature Events on the Mall: - Request for Qualifications to produce a winter market and summer farmers market, arts market, Lake Street/Mall Food Truck event, Special Events for Families - TENTATIVE Bravo-Vail Summer Concert Venue Vendors: In addition to signature events on the mall, adopting new Town code for allowing vendors on the mall, and potentially in other areas in the core of Avon, is planned for review in the 1 st quarter on One-Time Special Event Opportunities The Town desires to have the alacrity to attract and support opportunities outside of the signature special events. These opportunities often times require funding. Examples include: 2015 Alpine World Ski Championships Après Avon: $250, day event of music, food and spontaneity. Mikaela Shiffrin Sponsorship Athlete Signing, Video, Mikaela Way Concerts Private Party usage of Pavilion, including but not limited to receptions, weddings, speaker engagements Page7

8 CREATIVE ARTS DISTRICT The Town of Avon actively sought selection into the State of Colorado s Creative Art District program in the summer of Under the auspices of the State of Colorado s Economic Development Office, the creative arts have been proven to add a cultural richness to Colorado communities that not only benefit the residents, but serve as a tourist attraction. While not selected for the State s two-year certification program, the Colorado Creative Arts Industries, which administers the Creative Arts District program, strongly encouraged Avon to move productively forward to implement the measure needed to gain the coveted Colorado certification. This work is prioritized for Avon s economic development team. Distinct Program Requirements: Establishment Of Creative Arts District Advisory Committee Development of strategic plan and budget; research best practices for successful CADs Community engagement Evaluate application for State of Colorado certification program in 2016 cycle In addition to and concurrently with the implementation of the requirements of the Creative Arts District, Town staff will attentively seek to partner with the Seasons Building and east Avon properties for the development of the arts and non-profits: Seek out public-private partnerships for vacant space development and use Support art projects on the mall, such as this year s Social Art Program Page8

9 MARKETING Avon, to date, has not staffed nor funded a marketing and promotional program. With special events and new venues underway or completed the importance of a marketing program is paramount. The attraction of citizens to advise the Town Council and Town Manager, similar to Vail s Local Marketing District, is a model which should be evaluated for a parallel initiative in Avon. Marketing work underway in Avon at this time includes: ResortApp A free app that includes fully loaded maps, ski area trails, GPS functionality and a comprehensive directory of events and businesses in Avon and the Vail Valley: - Town trade with Resort App in exchange for full integration of town amenities, events, trails, and other information - Avon business listings offered at discounted rate though the town - Recreation Center listings and promotions - Ability to push out specific messaging during events, including 2015AWSC - Creative District listings as future strategy Marketing strategies to elevate the town brand including : - Special event campaigns through event producers - Social media including Facebook and Twitter - CGI Video program In-house research on ski town use and restrictions of social media Update of Town of Avon website Vail Daily bi-monthly news and announcement display ad Development of a value for Performance Pavilion Naming, solicit private interests, corporations and private foundations for funding. Page9

10 COMMERCIAL/RESIDENTIAL BUSINESS DEVELOPMENT OPPORTUNITIES Strategic Plan Fiscal Years Stakeholder & Regional Partnerships Meet with owners and representatives of the Village (at Avon), Traer Creek Metropolitan District, Hoffmann Commercial Properties, East-West Partners/Starwood Capital Group and Beaver Creek Resort to develop good communication, timely understandings and the trust necessary for the future development of the Town of Avon. This outreach and communication is the responsibility of all elected and appointed officials and the employees of the Town of Avon. In addition, strong relationships are needed with regional governments. Most prominent are the interests shared with the Town of Vail, Eagle-Vail, Edwards and Eagle County in fostering smart growth and a sustainable economy. Strategies: Throughout the year, Liaison Appointees and Town Manager will meet with respective principals for developments in the Town of Avon to discuss current issues, development needs and opportunities Annual or bi-annual sessions will be held in joint meeting settings with government partners Throughout the year, fully participate and collaborate in regional transportation planning, service expansion, identification consistency and transit efficiencies, as well as I-70 Corridor Demand Management work and advocacy for an AGS station in Avon Ensure Avon representatives apply for regional boards, including trails, affordable housing and transit A peer group will be initiated of land use planners for tri-annual meetings The Town Manager takes a lead role in the work as defined above. Page10

11 Avon Economic Initiatives Strategic Partners VAIL VALLEY PARTNERSHIP Chamber of Commerce - Destination Marketing Organization Economic Development Leadership Council Economic Research Center Future Economic Growth/Diversification Growth & Expansion of Current Businesses EGE Regional Airport - New Business Recruiting - Tourism & Recreation - Health & Wellness Learning & Education Historic Economic Data & Tourism Information Small Business Resources EAGLE COUNTY THE EAGLE COUNTY ECONOMIC DEVELOPMENT PLAN Economic Council of Eagle County Vail Valley Partnership Eagle County Tourism & Recreation - Health & Wellness Learning & Education Demographic Information VAIL LEADERSHIP INSTITUTE / 8150 HIGH ALTITUDE ENTREPRENEURS Leadership Development Base Camp Co-working Facility Business Attraction / retention Collaboration facilitator for small business owners/entrepreneurs VAIL VALLEY FOUNDATION Arts Athletics Education Birds of Prey 2015 FIS Alpine World Ski Championships STATE OF COLORADO - COLORADO BLUEPRINT BOTTOM-UP APPROACH TO ADVANCING COLORADO The Colorado Advantage (natural beauty, health, outdoor recreation, talent, educated) Build Business Friendly Environment - Retain, Grow & Recruit Companies Increase Access to Capital - Educate and Train the Workforce of the Future Cultivate Innovation & Technology Create & Market a Stronger Brand Colorado is more than just epic natural beauty. It's entrepreneurial, creative and forward-thinking. Page11

12 2016 EXPECTED OUTCOMES Strong relationships among the Town, the business community, nonprofits and regional entities Improved cost recovery at Avon Recreation Center improved amenities and programming Certified and burgeoning Creative Arts District Sustainable events balanced with community needs/wants (not to over program) Increased sales tax and lodging revenues; stronger summer economy New business development throughout the core and the Village Notoriety for Avon elevation of the Avon brand Page12