Schipske Outlines Two
Steps City Can Take To Move Economic Development – Apply With LAEDC for Federal
Designation as Manufacturing Community and Assist Local Businesses and
Developers in Applying for CALPERS Pension Investment
February 7,
2014 – With an unemployment rate still hovering in the double digit range,
Councilwoman Gerrie Schipske says it is time Long Beach became more aggressive
in tracking down opportunities for economic development.
“I sit on the LA Jobs Defense
Council which is a part of the Los Angeles County Economic Development
Corporation because I wanted to find out what Long Beach can do to attract
business and jobs,” says Schipske. “LAEDC is aggressively seeking opportunities
and just announced that it will apply to become one of 12 communities federally
designated as a manufacturing community. Long Beach needs to a part of the
application.”
The
designation is funded through the Investing in Manufacturing Communities
Partnership (IMCP), a new government-wide initiative that will help communities
cultivate an environment for businesses to create well-paying manufacturing
jobs in regions across the country and thereby accelerate the resurgence of
manufacturing. The IMCP is designed to reward communities that demonstrate best
practices in attracting and expanding manufacturing by bringing together key
local stakeholders and using long-term planning that integrates targeted
investments across a community's industrial ecosystem to create broad-based
prosperity. The IMCP is a critical component of the Department of
Commerce’s “Open for Business Agenda,” which prioritizes trade and investment.
Up to
12 communities will be designated and the designation gives them elevated
consideration for $1.3 billion in federal dollars and assistance from 10 cabinet
departments/agencies. These communities would also potentially receive
additional catalytic federal investments to support their economic development
strategies. Proposals for designation as a Manufacturing Community must be
submitted on behalf of the region by a consortium – which in this case is
the Los Angeles County Economic Development Corporation.
“I am
agendizing an item for Council requesting the City Manager to work with LAEDC
in submitting the information necessary for Long Beach to be considered in this
federal stimulus program,” explains Schipske. “The application must be
submitted by March 14.”
Schipske
also notes that the CALPERS system which manages $3.05 billion of assets contributed
by Long Beach for its employees’ pensions, invests these funds in businesses
and developments. “Long Beach is the largest city contributor in CALPERS and
some of these funds need to come back to the City through investments,” says
Schipske.
CALPERS
accepts proposals for investments in the following categories: Private Equity, Real Estate,
Forestland, Infrastructure, Commodities, Global Fixed Income, Global Equities
or Hedge Funds. (see https://www.calpers.ca.gov/eip-docs/about/pubs/financial-performance.pdf)
In
2001, CALPERS approved a $1 billion dollar investment in 445 communities that
were classified as traditionally underserved. Schipske notes that with the
City’s “high rates of unemployment and poverty” should qualify Long Beach for
CALPERS investment.
“I am
also agendizing an item requesting the City Manager to schedule a presentation
at Council from CALPERS on how Long Beach businesses and developers can apply
to be considered for CALPERS investment. Both of these proposals can assist
greatly in the economic development of Long Beach.” #30
