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HomeMy WebLinkAboutStaff Report 365-07City of Palo Alto City Manager’s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER 7 DEPARTMENT:PLAN~ING AND COMMUNrlTY COMMUNqTY ENVIRONMENT SEPTEMBER 24, 2007 APPROVAL OF ECONOMIC CMR: 365:07 ALLIANCE BET~VEEN CITY OF ENSCHEDE (NETHERLANDS) AND THE CITY OF PALO ALTO RECOS~MENDATION Staff recommends that the City Council authorize the Mayor to sign the Economic Alliance (Attachment 1) between the City of Enschede, Netherlands and the City of Palo Alto. BACKGROUN~ Enschede, Netherlands and Palo Alto have shared more than 25 years of cultural friendship as sister cities. In 2005, a number of local and regional government leaders visited Palo Alto and discussions regarding ways to enhance this relationship and take advantage of opportunities for business development in both countries occurred. Enschede and Palo Alto have both been recognized as centers of excellence in knowledge-based technology, biotechnology and nanotechnology. Enschede, known abroad as a gateway to the European marketplace is a leader in innovation and entrepreneurship. Both cities are home to the world class institutions Twente University in Enschede and Stanford University in Palo Alto. In addition, both are home to internationally competitive financial and professional services and a broad range of strateNc industry clusters. In an effort to expand the sister city relationship that Palo Alto enjoys with Enschede and to focus on opportunities for collaboration in the economic and business sectors, local government and business leaders have determined that the formation of an Economic Alliance would facilitate future economic cooperation. DISCUSSION The existing sister city relationship is an officially approved, long-term relationship between Palo Alto and Enschede. Currently, the relationship is mostly active on two levels: local government and a wide variety of citizen volunteers. Expansion of this partnership has the potential to make positive contributions on yet another level: business and educational liaisons CMR 207:06 Page 1 of 3 that could enhance prospects for businesses in both cities. Through this type of exchange, Palo Alto companies looking for global opportunities could have identified contacts and assistance in expanding into the European marketplace. Enschede has been home to many innovative start-up companies, but has been challenged in identifying successful strategies for moving these promising companies into the second, more expansive stage of development. This is an area in which Silicon Valley companies excel. This would be a perfect learning ground for Enschede businesses looking to expand. During the recent visit of Enschede representatives to the bay area, city staff made introductions to venture capitalists, Stanford Research Park and specific high tech businesses to provide a foundation for further collaboration. The following entities from Enschede have ageed to actively support an economic allilance: The City government of Enschede The Development Agency, East Netherlands The Chamber of Commerce, East Netherlands Kennispark Twente (Knowledge Park Twente) MESA+ Technology Circle Twente Twente University In Palo Alto, the Chamber of Commerce has expressed interest as well as representatives from Stanford University and the Stanford Research Park. Following execution of the agreement, City staff will outreach to these entities in a more formal manner. The CEO of the Palo Alto Chamber of Commerce participated in and was supportive in early conversations regarding participation in the Economic Alliance. The key elements of the agreement are: Collaboration (both partners have the intention of identifying a point of contact for each City) City policy and strategy cooperation (exchanges, best practices and learning opportunities will be identified and shared) Establishment of joint ventures (both Palo Alto and Enschede agree to foster expansion opportunities for start-up, mid range and longer term business enterprises) Beneficial student/faculty/entrepreneur exchanges (specific focus will be on the research and entrepreneurship institutes of both universities) The agreement will be in effect between Enschede and Palo Alto for a period of five years from September 24, 2007. After September 24, 2012, the ageement will automatically renew on each anniversary date unless notice of non-renewal is provided by either party 30 days prior to the renewal date. Both cities agree to review progess on a bi-annual basis. RESOURCE IMPACTS No resource impacts are anticipated at this time. CMR 207:06 Page 2 of 3 ENVIRONMENTAL REVIEW This action by the City Council is not considered a project under the California Environmental Quality Act. PREPARED BY: SIJSAN BARitES ARPAN Economic Development and Redevelopment Manager DEPARTMENT HEAD REVIEW:JsTEVE/E3,ISLIE Directo~ of Plannin= o and Community Environment CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager ATTACtt~IENTS Attachment 1: Economic Alliance City of Enschede/City of Palo Alto ClVIR 207:06 Page 3 of 3 one joint business event will be co-sponsored to promote business gowth, trade and investment. Partner Organizations To effectively accomplish the above goals, it is critical that other partners in addition to the local government participate in this mission. The following are potential partner organizations: Enschede Chamber of Commerce East Netherlands Centre for Telematics & Information Development Agency East Netherlands Kennispark Twente MESA+ Technology Circle Twente Twente University Pato Alto Palo Alto Chamber of Commerce Stanford University Joint Venture Silicon Valley Stanford Research Park Duration qf the Alliance The Alliance will be in effect between Enschede and Palo Alto for a period of five years from September 24, 2007. After September 24, 2012, this Alliance will automatically renew on each anniversary date unless notice of non-renewal is provided by either party 30 days prior to the renewal date. Both cities agee to review progress on a bi-annual basis. This Alliance expresses the mutual intention of Enschede and Palo Alto to foster economic development and collaboration. Nothing contained in this document shall be construed as forming a contract, business entity, partnership or fiduciary relationship or any other legal obligation between Enschede and Pa!o Alto. This Alliance is acknowledged and ageed to on behalf of the City of Enschede, the Netherlands on this 24th day of September, 2007 in the City of Palo Alto, by , P.E.J. den Oudsten, Mayor of Enschede. (Signature) This Alliance is acknowledged and a~eed to on behalf of the City of Palo Alto, California, on this 24th day of September, 2007 in the City of Palo Alto, by . Yoriko Kishimoto, Mayor of Palo Alto, (Si~ature)California.