Title
RESOLUTION AND COLLABORATIVE AGREEMENT WITH WICHITA STATE UNIVERSITY REGARDING SOUTH CENTRAL KANSAS ECONOMIC GROWTH STRATEGY.
Presented by: Chris Chronis, Chief Financial Officer.
RECOMMENDED ACTION: Approve the resolution and authorize the Chairman to sign the agreement.
Body
Private and public leadership groups across South Central Kansas have agreed it is time to work together to shape a next generation action strategy to grow the regional economy. Wichita State University, Wichita Metro Chamber of Commerce, Wichita Downtown Development Corporation and if approved, the City of Wichita and Sedgwick County, will join forces to work with regional companies and institutions to develop a regional, cluster-based strategy for economic growth. For purposes of the growth strategy the region will consist of 10 counties: Sedgwick, Butler, Cowley, Harper, Harvey, Kingman, Marion, McPherson, Reno, and Sumner. These counties comprise the full coverage areas of the Regional Economic Area Partnership (REAP) and the Greater Wichita Economic Development Coalition (GWEDC).
On Tuesday, September 23, council members from the City of Wichita and Sedgwick County commissioners were briefed on the regional strategy as part of a joint meeting. That presentation is attached.
The collaborative effort will be advised by consultants who have been working with Wichita State University on its Innovation Campus: Paul Masson, managing director of StarNet LLC, and James Gollub (James Gollub Associates), a StarNet affiliate.
The consulting team has worked with markets and economic cluster development in cities throughout the United States and the world, including Austin, Albuquerque, San Antonio and Calgary.
The development of the growth strategy follows a four-step process:
-- Mobilize - identify regional leaders and "stewards," who will guide the economic strategy
-- Analyze - complete a diagnostic baseline of how the region's economy is performing, assess existing and emerging 'economic engines' that drive the economy-known as industry clusters, and appraise advantages (or disadvantages) in economic inputs needed to form, expand or attract industry. These include skills, innovation, capital, logistics, resources and quality of life.
-- Catalyze action within each regional cluster. This is done by "convening the marketplace," or bringing together cluster companies, their producers, suppliers and key economic input institutions. Together each cluster identifies shared challenges, aggregate demand for priority actions, and complete realistic action business plans. Each cluster strategy comprises actions to form, expand and attract growth to the region in that cluster based on agreements and stakeholder commitments.
-- Realize results. This step builds on challenges shared across clusters to form what is called "flagship initiatives" that influence all industries. Then leaders, stewards and representatives from the regional clusters shape a lean partnership that will maintain progress on implementing actions, build the crosscutting flagships and track outcomes.
The overall effort focuses on clusters as economic engines because they export or "trade," bringing new revenue into a region. While clusters account for about 25 percent of a community's jobs, their multiplier effects generate the remaining jobs. Potential clusters are typically groups of related firms that design, engineer and produce regionally, but "trade" outside the region, including aviation, energy, logistics, agriculture production, as well as "seed" or emerging clusters that leverage local competencies in new ways.
According to Jim Gollub, the result is a strategy consisting of multiple, practical action steps that are directly linked to one cluster or a group of economic clusters. Because it's market-driven, the clusters themselves identify what needs to be addressed and also play a role in implementation along with partner institutions-whether schools, universities, banks, transport, infrastructure or governance.
The StarNet team is working with the regional sponsors to launch the project during the coming month.
The agreement commits Sedgwick County to being an active collaborator in the development of the economic development strategy, and to providing not more than $42,986 of funding to support the project. The project workplan and timeline is described in detail in Attachment A of the agreement.
Alternatives:
The BOCC could decline to approve the agreement. In that case, the County would be unable to participate in the development of the regional growth strategy.
Financial Considerations:
The agreement provides that the County will provide WSU not more than $42,986 to be used to pay the consulting team upon receipt invoice by WSU. The amount of county cost could be reduced to $39,155 if additional collaborators agree to participate in the funding of the project. Sufficient budget authority is provided in the Economic Development program of the General Fund to support the expenditure.
Legal Considerations:
The authority for this action is K.S.A. 19-101a, et seq., and amendments. A simple majority vote is required.
Policy Considerations:
Outside Attendees:
Multimedia Presentation: