Economic and Community Economic and Community Council CommitteeCouncil Committee

Centro PartnershipCentro Partnership December 14, 2009December 14, 2009

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BackgroundBackgroundDowntown Assessment Downtown Assessment –– July 2007July 2007–– Facilitated by Michael Stevens, ED Capitol Facilitated by Michael Stevens, ED Capitol

Riverfront Business Improvement DistrictRiverfront Business Improvement DistrictIDA Advisory Panel IDA Advisory Panel –– May 2008May 2008–– Representatives from Phoenix, Washington D.C., Representatives from Phoenix, Washington D.C.,

Arlington, Fort Worth, and the CEO of the IDAArlington, Fort Worth, and the CEO of the IDA–– Requested to identify the best downtown Requested to identify the best downtown

management structure to oversee, coordinate and management structure to oversee, coordinate and facilitate economic development and facilitate economic development and redevelopment plans in the downtown.redevelopment plans in the downtown.

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BackgroundBackgroundIn January 2009, David Feehan, President of In January 2009, David Feehan, President of Civitas Consultants LLC, was contracted by the Civitas Consultants LLC, was contracted by the City to expand IDA Panel recommendations and City to expand IDA Panel recommendations and propose the structure and management of a new propose the structure and management of a new organization and assist with its implementation. organization and assist with its implementation. In June 2009, Dave Feehan provided a draft In June 2009, Dave Feehan provided a draft proposal:proposal: The Centro Partnership The Centro Partnership –– A New A New Beginning for Downtown San Antonio.Beginning for Downtown San Antonio.Since June, Dave Feehan and City staff have Since June, Dave Feehan and City staff have briefed various organizations and stakeholders.briefed various organizations and stakeholders.

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ProposalProposalCreate 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.

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What is the Centro PartnershipWhat is the Centro PartnershipA 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.

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Organization ChartOrganization Chart

Centro Partnership

501 (c) 6

Downtown Alliance501 (c) 6

Centro San Antonio501 (c) 4

Community Development Corporation

501 (c) 3

Residential, Business

Recruitment and Retention

Parking and Transportation Management

Programming Council

Coordinating Council

*The boxes highlighted in red are new organizations and/or program elements.

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Centro PartnershipCentro PartnershipStaff and manage the functions of all program elements. Staff and manage the functions of all program elements. Implement the vision for our center city.Implement the vision for our center city.Manage existing corporations and their respective Boards Manage existing corporations and their respective Boards which will continue to exist as subsidiaries of the Centro which will continue to exist as subsidiaries of the Centro Partnership.Partnership.The boards of each of these entities continue to exist The boards of each of these entities continue to exist because of legal requirements. However, the number of because of legal requirements. However, the number of board members on each board will be minimal and the board members on each board will be minimal and the boards will meet only as legally required and or boards will meet only as legally required and or necessary. necessary.

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Centro PartnershipCentro PartnershipThe board of directors of the Centro Partnership will reflect thThe board of directors of the Centro Partnership will reflect the twoe two--fold fold nature of its mission: management, marketing, and maintenance ofnature of its mission: management, marketing, and maintenance of downtown San Antoniodowntown San Antonio’’s public spaces; and downtown economic s public spaces; and downtown economic development..The board will be a The board will be a ““CEOCEO--levellevel”” board. Each entity should be board. Each entity should be represented by the highestrepresented by the highest--level leadership or by a key decisionlevel leadership or by a key decision--maker maker in the entity he or she represents. in the entity he or she represents. –– Board members from the private sector should be company owners, Board members from the private sector should be company owners, chief chief

executives, or highestexecutives, or highest--level local officials (for example, hotel general level local officials (for example, hotel general managers) whenever possible. managers) whenever possible.

–– The public sector should be represented by the Mayor of San AntoThe public sector should be represented by the Mayor of San Antonio, the nio, the City Manager, the Bexar County Judge and a representative selectCity Manager, the Bexar County Judge and a representative selected by ed by the San Antonio City Council.the San Antonio City Council.

A nominating committee composed of representatives from the CitA nominating committee composed of representatives from the City of y of San Antonio, Bexar County, and Downtown Alliance will nominate tSan Antonio, Bexar County, and Downtown Alliance will nominate the he 1515--25 member Board of Directors. 25 member Board of Directors.

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Centro PartnershipCentro PartnershipDowntown Coordinating Council Downtown Coordinating Council –– The Downtown Coordinating Council will not be The Downtown Coordinating Council will not be

incorporated and will have no budget; it will be staffed incorporated and will have no budget; it will be staffed by the Centro Partnership CEO and will take by the Centro Partnership CEO and will take appropriate action on major projects, programs and appropriate action on major projects, programs and initiatives.initiatives.

Downtown Program CommitteeDowntown Program Committee–– The Downtown Program Committee will serve as a The Downtown Program Committee will serve as a

coordination mechanism to ensure seamless coordination mechanism to ensure seamless cooperation between those organizations having cooperation between those organizations having substantial interests and responsibilities in downtown substantial interests and responsibilities in downtown San Antonio.San Antonio.

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Program ElementsProgram ElementsDowntown AllianceDowntown Alliance–– Advocacy and marketingAdvocacy and marketing

Centro San AntonioCentro San Antonio–– Operations and maintenanceOperations and maintenance

Community Development CorporationCommunity Development Corporation–– Real estate acquisitionReal estate acquisition

Residential, business recruitment and retentionParking and transportation management

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Downtown Alliance & Centro San Antonio Downtown Alliance & Centro San Antonio

Downtown Alliance will continue to serve as the Downtown Alliance will continue to serve as the membership, marketing, communication and membership, marketing, communication and advocacy entity of the Centro Partnership, and advocacy entity of the Centro Partnership, and Centro San Antonio will continue to contract with Centro San Antonio will continue to contract with the City of San Antonio to provide supplemental the City of San Antonio to provide supplemental services in the downtown public improvement services in the downtown public improvement district. district. Downtown AllianceDowntown Alliance’’s current programs, mainly in s current programs, mainly in communications, education and marketing, and communications, education and marketing, and Centro San AntonioCentro San Antonio’’s maintenance, landscaping s maintenance, landscaping and ambassador services will form the core of and ambassador services will form the core of programs offered by the Centro Partnership. programs offered by the Centro Partnership. –– There will be a number of new programs added over the There will be a number of new programs added over the

first three years, and some current programs may be first three years, and some current programs may be reduced or discontinued. reduced or discontinued.

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Community Development CorporationCommunity Development Corporation

Downtown Alliance created a 501 (c) 3 nonprofit Downtown Alliance created a 501 (c) 3 nonprofit community development corporation to assist with community development corporation to assist with innerinner--city projects, and that corporation still exists.city projects, and that corporation still exists.This proposal recommends keeping that corporation This proposal recommends keeping that corporation alive and intact, but repositioning it to serve as the alive and intact, but repositioning it to serve as the real estate arm for the new Centro Partnership. real estate arm for the new Centro Partnership. The CDC can be used for acquisition of sites, landThe CDC can be used for acquisition of sites, land-- banking for future development, and partnering with banking for future development, and partnering with for profit or nonprofit developers when deals would for profit or nonprofit developers when deals would otherwise not occur.otherwise not occur.The CDC will The CDC will notnot compete with private sector compete with private sector developers.developers.

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Residential, Business Recruitment and RetentionResidential, Business Recruitment and Retention

This proposal recommends a carefully crafted and This proposal recommends a carefully crafted and designed, focused and welldesigned, focused and well--funded program to create funded program to create a critical mass of outstanding residential and retail a critical mass of outstanding residential and retail offerings in the downtown area. offerings in the downtown area. Through this concerted and wellThrough this concerted and well--coordinated effort, coordinated effort, buildings will be brought up to standard, tenant buildings will be brought up to standard, tenant incentives will be defined and implemented, and a incentives will be defined and implemented, and a marketing campaign for the shopping/dining district marketing campaign for the shopping/dining district will be launched. will be launched. In addition, the Centro Partnership will partner with the In addition, the Centro Partnership will partner with the City, Chamber and others to develop a strong City, Chamber and others to develop a strong business attraction/retention program focused on business attraction/retention program focused on office tenants.office tenants.

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Residential, Business Recruitment and RetentionResidential, Business Recruitment and Retention

This program element and the proposed new economic This program element and the proposed new economic development corporation will be very different, and in the few development corporation will be very different, and in the few instances where they might overlap, collaboration and instances where they might overlap, collaboration and cooperation will be required.cooperation will be required.The regional economic corporation will be chiefly concerned The regional economic corporation will be chiefly concerned with recruiting major employers to the San Antonio region. with recruiting major employers to the San Antonio region. –– Where they locate within the region will be a secondary concern Where they locate within the region will be a secondary concern at most. at most.

The Centro Partnership will focus exclusively on the center cityThe Centro Partnership will focus exclusively on the center city, , and will seldom be involved in major employer recruitment. and will seldom be involved in major employer recruitment. Most of the PartnershipMost of the Partnership’’s time and resources will be spent on s time and resources will be spent on managing, marketing and maintaining downtown San Antonio. managing, marketing and maintaining downtown San Antonio. It will be involved in issues like residential development, parkIt will be involved in issues like residential development, parking ing and transportation, retail attraction and retention, social issuand transportation, retail attraction and retention, social issues es like homelessness, safety and security, and maintenance of like homelessness, safety and security, and maintenance of public spaces.public spaces.

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Parking and Transportation ManagementParking and Transportation Management

This proposal recommends that the Centro This proposal recommends that the Centro Partnership begin negotiations with COSA to Partnership begin negotiations with COSA to assume overall management and coordination of the assume overall management and coordination of the downtown parking system. downtown parking system. This program element could also coordinate various This program element could also coordinate various forms of transportation serving a specific area, such forms of transportation serving a specific area, such as car and van pools, circulator and shuttle buses, as car and van pools, circulator and shuttle buses, street trolleys, and of course, parking.street trolleys, and of course, parking.This has proven successful in other cities such as This has proven successful in other cities such as Memphis, Nashville and elsewhere. Memphis, Nashville and elsewhere.

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Parking and Transportation ManagementParking and Transportation Management

If the City and the new Board agree that the Centro If the City and the new Board agree that the Centro Partnership should manage the CityPartnership should manage the City’’s parking s parking system, a contract will be negotiated by City staff for system, a contract will be negotiated by City staff for review and approval by City Council and the Centro review and approval by City Council and the Centro Partnership BoardPartnership Board’’ssIf this transfer of parking management occurs:If this transfer of parking management occurs:–– City will still own all of the assets, City will still own all of the assets, –– City Council will annually approve the budget for the City Council will annually approve the budget for the

parking system,parking system,–– City Council will approve any overall rate increases, andCity Council will approve any overall rate increases, and–– City Council will have the right to opt out of the contract.City Council will have the right to opt out of the contract.

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BudgetBudgetThe Centro Partnership would derive the bulk of its income The Centro Partnership would derive the bulk of its income from the assessment district (PID), which could be from the assessment district (PID), which could be expanded in the future to incorporate expanded center city expanded in the future to incorporate expanded center city boundaries. boundaries. It would inherit and expand the membership program It would inherit and expand the membership program currently employed by the Downtown Alliance, and could currently employed by the Downtown Alliance, and could earn additional revenues through managing city contract earn additional revenues through managing city contract services and through revenueservices and through revenue--generating festivals and generating festivals and events. events. Additionally, the FY 2010 Budget includes a oneAdditionally, the FY 2010 Budget includes a one--time time $300K program expense. The $300k is a combination of $300K program expense. The $300k is a combination of $207,797 in cash and the remainder in in$207,797 in cash and the remainder in in--kind services. kind services. It is important that the Centro Partnership become self It is important that the Centro Partnership become self sufficient in FY 2011.sufficient in FY 2011.

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BudgetBudgetRevenues

FY2010 FY2011 FY2012Centro 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.

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BudgetBudgetIn FY 2009, the City of San Antonio transferred In FY 2009, the City of San Antonio transferred approximately $500,000 to the general fund to pay approximately $500,000 to the general fund to pay for the salaries and other indirect costs associated for the salaries and other indirect costs associated with the management of the parking system.with the management of the parking system.If the City chooses to transfer the management of If the City chooses to transfer the management of the parking system to the Centro Partnership, the the parking system to the Centro Partnership, the City would no longer need to transfer these funds City would no longer need to transfer these funds to the general fund, Centro Partnership would to the general fund, Centro Partnership would charge the Parking Enterprise Fund a yearly charge the Parking Enterprise Fund a yearly management fee.management fee.

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PartnersPartnersThe Centro Partnership concept has been presented to the The Centro Partnership concept has been presented to the numerous stakeholders to include our public partners, neighborhonumerous stakeholders to include our public partners, neighborhood od associations, developers, and other downtown organizations.associations, developers, and other downtown organizations.The City of San Antonio has received numerous letters of supportThe City of San Antonio has received numerous letters of support endorsing the Centro Partnership.endorsing the Centro Partnership.

The City of San Antonio, Bexar County, and Downtown Alliance havThe City of San Antonio, Bexar County, and Downtown Alliance have e formulated a work group that will assist with the required next formulated a work group that will assist with the required next steps steps for the Centro Partnership concepts.for the Centro Partnership concepts.

SARASARA Frost BankFrost Bank Hixon PropertiesHixon Properties

SAGESAGE Tourism CouncilTourism Council Greater Chamber of CommerceGreater Chamber of Commerce

AIAAIA Centro San AntonioCentro San Antonio HemisFair Park Area Redevelopment CorporationHemisFair Park Area Redevelopment Corporation

ReataReata Downtown AllianceDowntown Alliance Lou Fox, James Lifschutz, Michael WestheimerLou Fox, James Lifschutz, Michael Westheimer

Pearl BreweryPearl Brewery Teeple PartnersTeeple Partners

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Next StepsNext StepsStaff is requesting that ECDC endorse the creation of a public Staff is requesting that ECDC endorse the creation of a public private partnership that is focused on the development and private partnership that is focused on the development and redevelopment of our Center City.redevelopment of our Center City.Staff is also requesting that this concept be placed on a JanuarStaff is also requesting that this concept be placed on a January y 2010 City Council Agenda for City Council to take action on a 2010 City Council Agenda for City Council to take action on a resolution of support. resolution of support. Upon approval of a resolution of support, the Centro PartnershipUpon approval of a resolution of support, the Centro Partnership will be incorporated and the nominating committee will appoint will be incorporated and the nominating committee will appoint the board of directors following incorporation (February 2010).the board of directors following incorporation (February 2010).An interlocal agreement will be negotiated between the City, An interlocal agreement will be negotiated between the City, County and the Centro Partnership that clearly identifies the County and the Centro Partnership that clearly identifies the program elements and details the responsibilities of each program elements and details the responsibilities of each partnership entity (March 2010).partnership entity (March 2010).All contracts between the City of San Antonio and the Centro All contracts between the City of San Antonio and the Centro Partnership will require City Council Action and Approval. Partnership will require City Council Action and Approval.

Economic and Community Economic and Community Council CommitteeCouncil Committee

Centro PartnershipCentro Partnership December 14, 2009December 14, 2009