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03/09/2022 - Meeting Materials REGULAR MEETING OF THE BUSINESS ADVISORY BOARD Wednesday, March 9, 2022 8:30 a.m. - 10:00 a.m. To access and participate in the meeting please visit: https://saltlakecity.webex.com/saltlakecitv/I.php?MTI D=md247e3da25d7O27d2l l 7dba5O4l fb946 Meeting Password:wvArpZ23uM3 I, Darin Piccoli, Chair of the Business Advisory Board (BAB), hereby determine that conducting the Business Advisory Board meeting at an anchor location presents a substantial risk to the health and safety of those who may be present. Agenda 1. Roll Call 2. Briefings by the Staff A. Report from the Department Deputy Director 5 minutes Ms Riffo Jenson will provide an update on the NBA All Star Game, introduce Katie Matheson in Economic Development and Andie Feldman in Business Development and request a Board member to fill Sue Rice's vacancy on the EDLF Loan Committee. B. Report from Director of Homeless Policy&Outreach 10 minutes Mr. Johnston will provide an update on the legislative session as it pertains to funding and requests regarding homeless mitigation. 3. Approval of the minutes A. Review and Approval of February gch , 2022, BAB Minutes BAB members will review the February 9th, 2022, meeting minutes and consider for approval. 4. Business A. Planning Department Zoning Initiatives 25 minutes Mr Norris, Planning Dept Director, will discuss initiatives and projects from Planning that impact the business community including the tech zoning in 2021. B. Public Utilities FOG Program 15 minutes Public Utilities Department will present on the Fats, Oils and Grease(FOG)program and how this may impact small business. C. Small Business Gap Analysis 15 minutes Board Members Sue Rice and Karen Gunn as part of the Small Business Subcommittee Working Group will present their findings on the small business gap analysis. 5. City Council Announcements A. No Updates 6. BAB Member Announcements A. Goldman Sachs 10,000 Small business Program 5 minutes Ms. Gunn will provide information and updates on this program 7. Adjournment People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance in order to attend this Business Advisory Board. Accommodations may include alternate formats, interpreters, and other auxiliary aids. This is an accessible facility. For questions, requests, or additional information,please contact the Department of Economic Development at 801-535-7200. MINUTES OF THE SALT LAKE CITY BUSINESS ADVISORY BOARD Wednesday,February 9',2022 8:30 a.m. -10:00 a.m. To access and participate in the meeting please visit: https:Hsaltlakecity.webex.com/saltlakecity j.php?MTID=m0ead373b89bcca2l245d263873f6c lbb Meeting Password: kgJ2euyZE55 1,Darin Piccoli,Vice-Chair of the Business Advisory Board(BAB),hereby determine that conducting the Business Advisory Board meeting at an anchor location presents a substantial risk to the health and safety of those who may be present. 1. Roll Call The following members of the Business Advisory Board were present: Darin Piccoli, Chair Scott Lyttle Jeff Carleton Alfonso Brito Andy Robertson The following members of the Business Advisory Board were absent: Abudujannah Soud Sue Rice Karen Gunn Also Present: Veronica Cavanagh,Department of Economic Development; Lorena Riffo Jenson,Department of Economic Development;Will Wright,Department of Economic Development; Cathie Rigby, Department of Economic Development; Peter Makowski,Department of Economic Development; Lindsey Day,Department of Economic Development; Roberta Reichgelt,Department of Economic Development; Allison Rowland, Salt Lake City Council Office; Kristina Olivas,Downtown Alliance; Jonathan Beam,US Ignite;Domenick Lasorsa,US Ignite; Tom Millar, Transportation Division; Edward Bennett, Suazo Business Center; Andrew Johnston,Community Outreach. 2. Briefings by the Staff Report from Director • Ms.Reichgelt stated that Kristen Lavelett will be leaving Local First, as the organization has determined to close its nonprofit permanently. She explained that DED staff is working on locating another local organization to work with to keep the local business message alive. Ms. Reichgelt suggested that the BAB and the Business Development team can work together in filling that gap until a new organization can be determined. • Ms.Reichgelt stated that the City has partnered with the Utah Transit Authority(UTA)to provide free transit for the month of February 2022. Report from Director of Homeless Policy& Outreach Mr. Johnston provided a report on the discussions during the Legislative Session concerning as housing, mental health issues, and poverty. 3. Approval of the minutes A. Review and Approval of January 12',2022 BAB Minutes Mr. Carleton made a motion to approve the minutes from January 12t1i,2022 meeting.Mr. Brito seconded the motion.Upon roll call,the motion passed unanimously. 1. Business A. Electric Vehicle Charging Station Incentives Mr. Wright discussed how the City is prioritizing electric vehicle adoption and EV charging infrastructure which is part of the Mayor's plan for 2022. The Business Development team has been looking at possible ways to incentivize local businesses to adopt charging infrastructure such as: - Rocky Mountain Power(on hold) They will cover 70%of costs of equipment for Level 2 charging station - Utah Department of Environmental Quality offers 50%grant rebate of up to $70,000 Some impediments that local businesses could run into are the cost of infrastructure. Currently the City does not have guiding policy on how these can be added to properties and if businesses are leasing space they would need property owner approval. Mr. Robertson said he was not aware of the programs and suggested more outreach needed to be done. Deputy Director Riffo-Jenson responded that DED staff will add the information to its monthly newsletter. Mr. Carleton said he currently has a level 1 charging station at his business and used the Rocky Mountain incentive that was provided before it went on hold. Rocky Mountain covered the installation costs but he still had out of pocket costs such as labor and has ongoing electrical costs. There is no revenue stream for the business from those who use it.Mr.Wright asked Mr. Carleton if his charging station can be found on the network. Mr. Carleton said yes. Chairperson Piccoli asked Mr.Wright if these incentives would be focusing on certain levels and what are the costs for the electrical upgrades regarding amps. Mr. Wright said all incentives are for level 2 and 3 and to get to level 3 there are significant costs. Mr. Wright stated that all of this is very preliminary and DED would come back at a future meeting to discuss further, assuming the incentives and the overall cost would make sense for business owners. B. 900 South Park Study Results/Parking in SLC Mr. Millar,the transportation planner for the with Salt Lake City's Transportation Division,provided a presentation regarding a parking study completed in 2021 which concerned supply and demand of parking in business districts such as Central 9',and the 9't'and 9'i'as well as along 900 South. Mr. Millar provided an overview of the study and stated that the draft has been presented to the community councils in the areas. He added that in addition to the community councils their team is also reaching out to the Business Advisory Board and the Transportation Advisory Board. The report should be finalized in the upcoming weeks.Mr.Millar asked the BAB if they had any feedback. Ms. Reichgelt added that she is hearing on a day-to-day basis that parking issues are looming larger as the city is growing. There are different ways to address parking and the City will need to weigh all the options, such as City policy,over cost,budgeting, and revenue. Ms. Rowland commented that these questions have been raised over the years and the technical solution is there,but the City must balance its budget every year and that takes general fund revenue. Essentially if there is going to be a shift in parking management,the City will need to determine how to fund what is currently getting funded by it. How to shift revenue without cutting other programs could be an issue. Ms. Reichgelt asked Mr.Millar if there are any cities that we could follow by example. Mr. Millar said he will send her a list. Mr. Robertson asked what if the City instead of businesses add charging stations and put them at locations away from areas that are choked from too many cars. He added that this could be part on delivering on the Mayor's plan for sustainability and help with having more parking for local businesses. Mr.Millar responded that the real question is do we want better cars or fewer cars. C. US Ignite and SLC Smart Cities Update Mr. Beam and Mr. Lasorsa are program managers at US Ignite and work on projects related to specific engagements particular in the Smart City space. They provided an overview on the US Ignite organization and a project that they are working on called Innovate SLC. Part of the Innovate SLC program includes small business training which Mr. Lasorsa asked the BAB for feedback on how to engage small businesses in Salt Lake City to be apart of that. If any BAB members wanted more information or have questions t please email Domenick.Lasordagus-i mg 'te.org or Jonathan.Beamkus-i nig te.org. Mr. Lasorsa also discussed US Ignites partnership with Venture Capital in doing an accelerator program in Salt Lake City. It is currently ongoing and they have invited start-up companies in the Salt Lake City area to apply that are interested in smart cities.For more information go to https://www.us- iggite.org/innovateslc-for-salt-lake-city-startups/ 2. City Council Announcement Announcement will be sent by email. 3. BAB Member Announcements No Announcements. 4. Adiournment There being no further business,the meeting was adjourned. Darin Piccoli, Chairperson This document and the recording constitute the official minutes of the Economic Development Business Advisory Board meeting held February 9',2022. i faL -, ERIN MENDENHALL BEN KOLENDAR MAYOR ' DIRECTOR �i�illl I I1��` DEPARTMENT of ECONOMIC DEVELOPMENT BUSINESS ADVISORY BOARD STAFF MEMO DATE: 3/9/2022 ITEM #: 1 PREPARED BY: Roberta Reichgelt RE: Planning Department Discussion REQUESTED ACTION: NA EXECUTIVE SUMMARY/ANALYSIS: The Board will hear a presentation by Planning Director, Nick Norris, regarding projects from Planning that impact the business community. One example that went through Council last year was the tech zoning. The discussion will center around how Planning approaches projects like the tech zoning and commercial zoning on 91h W and what the process is. ATTACHMENTS: Wi ERIN MENDENHALL :n ^� , i,�` BEN KOLENDAR MAYOR DIRECTOR 1 DEPARTMENT of ECONOMIC DEVELOPMENT BUSINESS ADVISORY BOARD STAFF MEMO DATE: 3/9/2022 ITEM#: 2 PREPARED BY: Roberta Reichgelt RE: Public Utilities FOG Program(Fats, Oils and Grease) REQUESTED ACTION: NA EXECUTIVE SUMMARY/ANALYSIS: The Board will hear a presentation by Chad Stratton from Public Utilities regarding the Fats, Oils and Grease (FOG) program and how the BAB can assist to inform small business about these requirements. ATTACHMENTS: Wi ERIN MENDENHALL :n ^� , i,�` BEN KOLENDAR MAYOR DIRECTOR 1 DEPARTMENT of ECONOMIC DEVELOPMENT BUSINESS ADVISORY BOARD STAFF MEMO DATE: 3/9/2022 ITEM#: 3 PREPARED BY: Sue Rice and Karen Gunn RE: Small Business Gap Analysis—Department of Economic Development REQUESTED ACTION: NA EXECUTIVE SUMMARY/ANALYSIS: The Board will hear a presentation by Board Members Sue Rice and Karen Gunn regarding their analysis on the effectiveness of Salt Lake City's small business ecosystem. ATTACHMENTS: Gap Analysis Attached Salt Lake City Business Advisory Board Small Business Subcommittee Gap Analysis March 2022 I. Purpose: "Small businesses are key to economic strength."—Strategic Economic Development Plan SLC 2017-2020 The SLC Economic Development Business Advisory Board Small Business Development Subcommittee(SBDS)assessed the current effectiveness of Salt Lake City's small business ecosystem in a two-phase process. The process included: a. Conducting a small business environmental scan to determine ecosystem gaps which impact Salt Lake City small businesses with up to one hundred employees b. Using scan results to identify the top three(3) "pain points"for the SLC small business ecosystem and prepared a gap analysis chart for presentation and review by Salt Lake City Business Advisory Board (BAB)and Salt Lake City Economic Development Department (SLC ED). II. Process and Actions: The Small Business Development Subcommittee performed the following environmental scan to support its gap analysis: a. Reviewed the following SLC ED business reports: 1.) Department of Economic Development Small Business Survey(2017) 2.) Department of Economic Development Small Business Survey(2019) 3.) Strategic Economic Development Plan Salt Lake City(2017-2020) 4.) Salt Lake City Economic Development Impact Report(2020-2021) 5.) Salt Lake City Entrepreneurship Prospectus(2021) 6.) Salt Lake City Economic Development Department website The review provided initial baseline data for comparison to outcomes identified in small business environmental scan and gap analysis. The majority of business survey respondents came from businesses with less than one hundred (100)employees. The typical industries represented in the reports above include professional/business services, residential real estate, retail trade, leisure/hospitality,educational/health services, manufacturing, construction/engineering/architecture, transportation/utilities/energy/natural resources,commercial real estate, outdoor products,and aerospace/defense. b. Compared baseline impact data from above-listed reports for current small business environment issues. c. Incorporated findings into gap analysis chart for review and recommendation by Salt Lake City Business Advisory Board (BAB)and Salt Lake City Department of Economic Development(SLC ED). ENVIRONMENTAL SCAN DIAGRAM/DETAIL EXPLANATION The following represents a sample of a small business environmental scan and variables which may impact long-term viability of Salt Lake City's small business ecosystem: Environment mm. t,.7 business ion Exchange infrastrucutre r7small business ecosystem rr."ark.t 1:7 stakeholders/resources Priorities Analysis Description Area Description Legal/Regulatory Environment Regulations that impact ability to create, grow, and sustain a small business in Salt Lake City Communication/Information Exchange Process(es)which impact smooth exchange of information between small business owners and respective areas of Salt Lake City Mayor's office to ensure businesses operate effectively and efficiently Stakeholder/Resources Analysis Stakeholders and resources which impact viability of small business development, i.e., customers and clients,financial institutions, educational resources and partners,technical assistance centers, etc. Small Business Infrastructure(external) Technology, geographic location(s), etc.which impact cost of doing business in Salt Lake City Shifts in Market Priorities Resources applied to vision and growth for Salt Lake City, e.g., balancing corporate recruitment and large company/project needs with small business development; targeted industry development, etc. GAP ANALYSIS for SALT LAKE CITY SMALL BUSINESS Salt Lake City consistently ranks among the top five cities in the United States for starting and growing a business as well as for corporate recruitment and relocation. The SLC Economic Development Department and its Small Business Development team do an impressive job supporting these rankings by providing and identifying small business needs and resources. The team should be commended for its commitment to interacting directly with small businesses, creating helpful tools such as its Doing Business in Salt Lake City guide, and growing the department's network with additional partners such as Downtown Alliance, Local First of Utah, and Utah's Own. Furthermore,the team should be recognized for addressing specific challenges resulting from the COVID-19 pandemic and leading the effort for distribution of loan and grant fund through its Emergency Loan Fund and introduction of the Hope Corps Program. Finally, Salt Lake Economic Development has renewed its Site Visit Program, bringing Salt Lake City employees to small business locations for real time visits with owners and employees. While there has been considerable progress to develop a robust small business ecosystem for Salt Lake City, entrepreneurs and small business owners still face challenges to creation, growth, and sustainability. Exclusive of the specific challenges resulting from the Covid-19 Pandemic,the Salt Lake Small Business Development Subcommittee(SBDS)found there were three(3)major gaps or pain points for doing business, captured in the gap analysis below: regulatory environment/communication and information flow*,stakeholder and resource impact on small business viability;shift in market priorities This gap analysis resulted from 2017-2021 Economic Development documents review and a scan of the small business"environment" in the city limits of Salt Lake City. Demographic profile for the analysis focused on businesses with 100 or fewer employees as that demographic represented the majority of business activity in Salt Lake City. See Table A—Gap Analysis Table III. Conclusion: Reports show that SLC Economic Development will focus on their small business efforts to: 1) continue support for small businesses struggling with COVID adjustments and recovery 2) update the Department of Economic Development's policy agenda and strategic plan to ensure that initiatives are geographically and socially equitable in perpetuity 3) clarify the purpose of the Economic Development Loan Fund and allocate funds to a Small Business Revolving Loan Fund 4) drive forward Tech Lake City and BioHive initiatives,and pursue additional partnership opportunities to further grow and expand the life sciences industry 5) pursue next steps with Sorenson Impact Center on a social impact bond 6) work with healthcare innovation companies in SLC to create apprenticeships for our residents The Salt Lake Small Business Development Subcommittee (SBDS)suggests that the Salt Lake Business Advisory Board and Salt Lake Economic Development department review the gap analysis to verify findings and then determine which pain point(s)might be integrated into the city's strategic economic development plan. The SBDS will work in partnership with both groups to identify realistic implementation and evaluation goals. TABLE A- GAP ANALYSIS TABLE Identified ecosystem "Pain Point" Current Standing Deficiency Action Item variable(s) Description #I:Impact of Legal and Navigating SL City 2017-2019 survey results Potential to submit building Streamline permit process to minimize need Regulatory Environment and regulatory environment show average 21.6%of small plans to nine(9)different for multiple calls to multiple depts.re:status communicate/information coupled with businesses rank city departments for review of permit exchange for efficiency and communication and regulations/licensing/permitting and approval. effectiveness information exchange as an issue. Provide real time communication access to Difficulty in getting timely or appropriate city employee for small Business owners also helpful feedback from businesses to discuss permit application identified ineffective business and/or"path-forward"solutions information and/or permitting/licensing depts. communication exchange as Continue SLC ED Best Practices with part of regulatory environment Most respondents were not focused marketing support and promotion for barrier familiar with the SLC ED or existing small businesses their programs/assistance they could rovide. #2:Stakeholders and Finding skilled labor at the A 3-year average (2017— Current economic Develop post-secondary training partnerships resources which impact right price 2019)shows 20.9%of small conditions may impact with educational partners for pipeline for job viability of small business businesses rank finding skilled ability for skilled workforce placement,career coaching,and talent development,i.e.,customers employees at an economic in high impact industries, development and clients,financial Determining most barrier to growth e.g., institutions,educational effective growth strategy IT/Healthcare/Manufacturin Advocate state funded training programs and resources and partners, and matching capital Shortage of skilled labor, data g.S focused recruitment from educational technical assistance centers, resources for that strategy showed that 16.5%of small partners. etc. business owners were Service sector concerned about growth employment,e.g., Expand partnership with local business opportunities and finding restaurant and hospitality community for high school and college capital investment for those also experience shortages internship opportunities because of economic conditions Develop focused education/training programs for underserved communities Lack of skilled educational/training Continue refinement of EDLF as an option for partnerships capital investment Limited internship Help create incentives for owners in service Opportunities sector areas who face rising labor costs #3: Shifts in Market Priorities Growing A Customer 2017-2019 survey results Recruitment focuses on Identify supply chain opportunities for small Base average show 17.8%of small larger companies businesses associated with city's recruitment businesses ranks finding efforts growing its customer base is Targeted industry growth i.e.,incentives for large businesses to an economic barrier and company recruitment contractually support and team with smaller in high wage/high demand companies industries such as IT/Healthcare,may Identify business/business opportunities for overshadow ability for complementary small business owners and small business owners to offer incentives grow a customer base e.g.,small business network in a specific industry at local,national,and international Small business owners level need to be more aligned with city's overall strategic Establish a certain percentage of recruitment vision. efforts in life science to be smaller businesses as part of the Life Science corridor Note: *Table combines regulatory environment and communication into one gap area to reflect response of demographic profile