An opportunity exists to enhance our local economic development program while increasing efficiencies so that resources dedicated to business retention and recruitment can be maximized. This proposal calls for economic development services to be under the umbrella of the Independence Chamber of Commerce, of which economic development is one of the 6 core missions for the organization.

On June 21, 2022, the City Council approved Resolution 6817. This resolution directed the City Manager to consult with both the EDC and the Chamber of Commerce to solicit proposals for economic development services. The City Manager was also directed to present a recommendation for City Council consideration at the August 8th Study Session. The City Council heard an update at the August 8, 2022 Study Session and extended the date for further recommendations to September 26, 2022. 

At the October 12, 2022 meeting of the Chamber of Commerce Board of Directors, two concepts were considered. The first concept, modeled from the Fort Dodge (Iowa) Growth Alliance, envisioned a unified operation consisting of the Chamber of Commerce, the Economic Development Council, the Ennovation Center, and the City of Independence Tourism Division. After reviewing the proposed organizational chart and bylaws, the Chamber of Commerce Board of Directors voted to reject this proposal.

The second concept envisioned a contract for services between the City of Independence and the Chamber of Commerce for economic development services. This concept closely mirrors the original proposal put forward at the June 21, 2022 City Council meeting in Resolution 6817, prior to that resolution being amended. After review and discussion, the Chamber of Commerce Board of Directors voted to accept this proposal with direction to have the Chamber of Commerce President finalize the contract for services with the City Manager.

On October 26th, 2022, the Independence Council for Economic Development Board of Directors voted not to submit a proposal for City Council consideration.

The City of Independence currently contracts with the Independence Council for Economic Development to assist the City in expanding and diversifying the economic base of Independence through the attraction and retention of business and industry. The City pays $170,000 annually for these services, along with an additional $10,000 pass-through payment to the Kansas City Area Development Council. As part of the City's ongoing goal of building financial stability, the Adopted Budget for Fiscal Year 2022-23 recommended allocating $140,000 for these services and contracting with the Independence Chamber of Commerce for business retention and recruitment services. This model will result in lower expenditures for the City for economic development services, reduce the duplication of operating expenses and staffing which already exist within the Chamber, and result in a more efficient and effective economic development program that supports the City's goal of growing the local economy.

Key provisions of the contract for services include:

• The Chamber shall continue to maintain and operate a division of the Chamber and a membership group known as the Independence Economic Development Partnership (the "IEDP") and it will operate as a public/private partnership. The function and purpose of the IEDP shall be promoting the economic welfare and growth of the City, including, but not limited to fostering and encouraging all facets of quality economic development - industrial, commercial, residential - which will have a significant impact on the economic growth of the City.
  
  
• The Chamber Board shall appoint or otherwise provide a means for the selection or election of members of the IEDP to the IEDP Advisory Committee. The officers of the IEDP Advisory Committee shall be selected in the manner determined by the Chamber Board of Directors. The IEDP Advisory Committee shall serve in an advisory capacity to the Chamber Board of Directors. A minimum of two members of the of the IEDP Advisory Committee will serve on the Chamber Board of Directors and will hold the titles of Chair and Vice-Chair within the IEDP. The IEDP Advisory Committee shall consist of one City Councilmember appointed by the Council, the City Manager, and such other members as the Chamber Board of Directors determines.
  • The Chamber will be responsible for implementing and performing the following functions:
  • Development of an updated strategic plan for economic development which will be used as a framework for future work plans.
  • Retain and expand existing employers in the City of Independence by providing research services, access to economic development tools, site location assistance, and other relevant expertise.
  • Develop and execute a comprehensive marketing program to promote economic activity in the City of Independence.
  • Identifying locations and targeted industry opportunities for future retail, commercial, industrial, and residential growth and work to make them attractive for development to increase the number of quality jobs, median income, and utility customers in the City of Independence.
  • Proactively act as a staff member of the City’s internal Economic Development Team by responding to and initiating, as needed, special projects, analysis, and negotiations advice on economic development opportunities to recruit or retain businesses that strengthens the economic base of the city.
  • Provide quarterly reports on job retention, job creation, and capital investment to the City Manager and City Council.  
  • Formulate and manage a business retention program to assess market risks and trends and develop tactics for business retention.
  • Actively recruiting new businesses to Independence. Actively and strategically promoting the community.
  • Serving as the primary economic development resource, facilitator, and champion for the City. 
   

• The effectiveness of the economic development program will be measured through the collection of data in the following areas:
  
  1. Total number of new business licenses issued annually.
  2. Total number of annual business license renewals
  3. Total commercial permit valuation
  4. Total capital investment
  5. Total number of new jobs added and jobs retained.

• Compensation for services will be set at a base amount of $140,000.00 annually and will not decrease during the term of the agreement.  The City at its discretion may increase the annual compensation which is budgeted for services based on the annually submitted work plan.
  
  
• The term of the contract shall be for two years with three one-year renewal options thereafter.