City Council February 21, 2012 Ced San Angelo City Council
San Angelo Comprehensive Economic Development Strategic PlanCity Council MeetingFebruary 21, 2012 Advance San Angelo Market Assessment | 1
Agenda1. Project Overview2. Market Assessment3. Target Industry Analysis4. Goal Areas and Priority Recommendations5. Next Steps – IMPLEMENTATION
Project Process Overview Project Set Up1 Form steering committee, develop project website, collect stakeholder and Stakeholder input through interviews, focus groups, and business survey Engagement Economic and Collect and analyze baseline economic, demographic, and workforce2 SWOT Analysis data, map assets, identify strengths, weaknesses, opportunities, and threats Identify target industry sectors to match between assets and site Target Industry3 selection requirements, conduct reverse site selection, identify needed Analysis workforce skills Action/Marketing Develop actionable strategies, create implementation matrix, provide4 Strategy and performance metrics Implementation
Market Assessment Identification of Benchmarks – Criteria • City must have a population between 80,000 and 200,000 • City must be the primary economic and population center of the region • City must be at least 75 miles away from a major metropolitan area • There must be a military base within the region • There must be a small public university in the city AT A GLANCE San Abilene, TX Amarillo, TX Wichita Lawton, OK Pueblo, CO Texas USA Angelo, TX Falls, TX Population (2010) 93,200 117,063 190,695 104,553 96,867 106,595 25,145,561 308,745,538 Population Growth (’90-’10) 10.3% 9.3% 20.9% 8.3% 4.6% 8.0% 48.0% 24.1% Unemployment Rate, August 2011* 6.8% 7.4% 5.9% 8.2% 5.4% 11.4% 8.5% 9.1% Labor Force Growth (’90-’10) 15.52% 20.3% 24.93% 6.9% 11.45% 25.76% 41.2% 22.29% Median Household Income (2010) $38,792 $38,623 $42, 652 $40,050 $39,973 $35,195 $49,651 $52,048 % Bachelor’s Degree + (2010) 23.2% 23.0% 20.8% 23.1% 21.2% 17.2% 25.6% 28.1% % in 25-44 Age Group (2010) 24.8% 26.4% 26.9% 26.1% 30.2% 24.2% 28.1% 26.6% •Not Seasonally Adjusted Source: U.S. Census Bureau, Bureau of Labor Statistics, Decision Data Resources
Market Assessment Market Assessment Market Assessment Answers the Following Questions: • Who is San Angelo? • What Drives the San Angelo Economy? • How Competitive is San Angelo’s Business Climate? • How Well Does San Angelo Support Small Business Development? • What Makes San Angelo Unique?
Market Assessment SWOT Analysis Strengths Weaknesses • Regional service center for a large • Limited professional job opportunities geographical area • Relatively low wages and income levels • Strong industry cluster concentrations in • Loss of young people to other urban areas aerospace/defense, natural resources, and • Historical lack of focus on target industries communication services • Relatively slow growth in population and • Stable economy thanks to large employers economic base in government, healthcare, and education • Limited air travel options • Strong agricultural heritage • No nearby access to Interstate Highway • Proximity to thriving Permian Basin oil and system gas industry • Community gateways and some primary • Unique natural assets (Concho River, Lake transportation corridors have uninviting Nasworthy) streetscapes • Wide range of cultural/historical assets • Limited amount of available office or • Overall high quality of life manufacturing/ warehouse space • Strong partnerships between SAISD and • Limited availability of specialized retail stores Howard College and ASU • Limited amount of land with direct rail access • Generosity of community and businesses
Market Assessment SWOT Analysis Opportunities Threats • Improved marketing/branding of San Angelo • Continued loss of young, educated people • Further capitalize on ASU’s connections to • Too much historical focus on being a “low- the Texas Tech University system cost” community • Strengthen relationships between ASU and • Relatively slow population growth within San community Angelo, and to a greater extent within the • New Business Resource Center (BRC) surrounding region • Foreign-trade zone designation • Reliance on government, healthcare, and • Build upon regional service center function education employment makes San Angelo • Better define roles of economic vulnerable to funding cuts from state and development partners, including improved federal government process for working with prospects • Limited emphasis on “soft skills” necessary for • Leverage public investments related to employment (punctuality, loyalty, courtesy) Concho River and Lake Nasworthy to yield • Plant closures are a real threat, particularly for greater private investments large employers that do not rely on local • Continued downtown revitalization suppliers or customers • Continued focus on expanding air travel options
Target Industry Analysis AE Target Industry Selection Process SAN ANGELO, TX TARGET INDUSTRIES Cluster Concentration Industry Regional Assets Vision Trends Alignment Target Industry Sector and Niche Recommendations 1) Which industries are 2) Do the clusters reflect 3) Are there local or 4) Do these clusters meet strong and are national growth trends? regional assets that the goals of the concentrated locally or give industries a community? regionally? competitive edge?
Target Industry Analysis Cluster Concentration –Tom Green County, TX
Target Industry Analysis Target Industry Recommendations PROPOSED SAN ANGELO, TX TARGET INDUSTRIES AND NICHES Regional Information Advanced Agri- Technology & Energy Goods & Manufacturing Business Customer Services & Logistics Support Renewable Crop and Fabricated Regional Technical Energy Livestock Metals and Medical Center Support Component Production Machinery Manufacturing Renewable Medical Energy Agricultural Arts and Customer Equipment and Generation Services Entertainment Service Supplies and Distribution Festivals, Spor Data Storage “Ports-to- Animal Science ting Plains” Oil and Gas Research and Events, and and Processing Logistics and Products and Development Outdoor Distribution Services Recreation Specialty Cyber Security Retail
Target Industry Analysis Energy Description Consists of firms engaged in the production and distribution of renewable energy and oil and gas, manufacturers that produce equipment or machinery for the renewable energy industry or oil and gas industry, and businesses that process oil and gas for use in other applications. Market Opportunities • Oil and Gas Products and Services and Gas Products and Services • Renewable Energy Component Manufacturing • Renewable Energy Generation and Distribution
Target Industry Analysis Energy Clean-Tech Venture Capital Investments in U.S.-Based Companies U.S. Wind ResourcesRenewable Energy Venture Renewable Energy Percentage of Investments ($ Millions) Total U.S. Venture Investments $7,000 50% $6,120 45% $6,000 $5,055 40% $5,000 35% $3,761 30% $4,000 $3,553 25% $3,000 $2,658 20% 23.2% $2,000 15% $1,158 10% $1,000 $807 $760 12.6% 5% $0 4.3% 0% 2003 2004 2005 2006 2007 2008 2009 2010 Source: PWC Money Tree Global Clean-Energy Market Size, 2000-2010 GLOBAL MARKET SIZE, IN $ US BILLIONS Source: Clean Edge, Inc., 2011
Recommendations San Angelo Comprehensive Economic Development Strategic Plan Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions. Goal 2: Continue to invest in downtown San Angelo and the Concho River. Goal 3: Fully capitalize on the unique opportunities provided by Angelo State University and Goodfellow Air Force Base. Goal 4: Tap into San Angelo’s innovative culture and leverage small business resources to support entrepreneurship and minority business development. Goal 5: Clarify and formalize the roles of San Angelo’s economic development partners to ensure that economic development is streamlined, transparent, and well-understood by all stakeholders. Goal 6: Improve San Angelo’s image and ensure that marketing efforts highlight regional assets and focus on target industries. Goal 7: Ensure that workforce development and education programs are connected to the marketplace and support the retention of young professionals. Goal 8: Engage in specific strategies to grow existing and emerging target industry sectors.
Recommendations Top 15 Priority Recommendations • Strategy 1.1: Continue to invest in regional transportation infrastructure, partnering with the Ports-to-Plains Alliance and TXDOT. • Strategy 1.2: Expand opportunities for international trade in San Angelo, both for local businesses seeking to import/export, as well as for foreign enterprises seeking to enter the U.S. market. • Strategy 1.4: Continue to aggressively pursue additional air travel connections. • Strategy 2.1: Continue to support investment in San Angelo’s most unique natural resource, the Concho River, to capitalize on its economic development potential. • Strategy 2.2: Identify specific opportunities for additional businesses and employers to locate in downtown San Angelo. • Strategy 3.1: Involve Angelo State University (ASU) more closely as a key regional economic development partner. • Strategy 3.2: Leverage ASU’s unique strengths for economic development purposes and provide support to ASU programs and research that are related to San Angelo’s target industries.
Recommendations Top 15 Priority Recommendations • Strategy 3.3: Continue the strong collaborative relationship between Goodfellow Air Force Base (GAFB), the City of San Angelo, Tom Green County, and the San Angelo Chamber of Commerce. • Strategy 3.4: Proactively retain military retirees from Goodfellow Air Force Base (GAFB), many of whom have advanced technology skills. • Strategy 4.3: Support and promote San Angelo’s vibrant network of small businesses and entrepreneurs to create a culture of creativity. • Strategy 5.1: Collectively agree upon operating guidelines which describe roles and responsibilities and advance the goal of strong teamwork toward the economic development of San Angelo. • Strategy 5.2: Implement a formalized Business Retention and Expansion Program (BREP) with regular outreach to existing San Angelo businesses. • Strategy 6.1: Promote the “Advance San Angelo” campaign as a unifying initiative for San Angelo’s regional economic development partners. • Strategy 6.4: Build on Lake Nasworthy’s success as a recreational asset to fully capitalize on its economic development potential. • Strategy 7.2: Retain and attract more young people to San Angelo.
Recommendations Top 5 Priority Recommendations • Strategy 1.4: Continue to aggressively pursue additional air travel connections. • Action Item 1.4.1 Continue to involve regional leaders in the air service and marketing campaign efforts to re-capture Houston as a daily flight destination to and from San Angelo. • Action Item 1.4.2 Maintain a high level of priority amongst regional business and government leaders so that additional destinations can be pursued after daily flights to Houston are successfully re-gained. Goal 1: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions.
Recommendations Top 5 Priority Recommendations • Strategy 2.1: Continue to support investment in San Angelo’s most unique natural resource, the Concho River, to capitalize on its economic development potential. • Action Item 2.1.1 Publicize, promote, and celebrate investments associated with the Concho River. • Action Item 2.1.2 Leverage public investments to yield a much greater amount of private investment, utilizing a public-private approach to develop land adjacent to the Concho River in and near downtown. • Action Item 2.1.3 Promote mixed-use development along the Concho River. • Action Item 2.1.4 Travel to other Texas cities with riverfront districts in or near their downtowns. –Visit the San Antonio River and Trinity Uptown in Fort Worth. Goal 2: Continue to invest in downtown San Angelo and the Concho River.
Recommendations Top 5 Priority Recommendations • Strategy 2.2: Identify specific opportunities for additional businesses and employers to locate in downtown San Angelo. • Action Item 2.2.1 Attract and grow more small businesses to downtown, focusing on daytime retail, bed and breakfasts, restaurants, and artist studios. –Market downtown as top location for start-ups, relocations, and expansions of local businesses. –Highlight and promote recent growth in new downtown business establishments. –Leverage under-utilized government-owned properties to attract private investment. • Action Item 2.2.2 Attract a full-service hotel into downtown to boost San Angelo’s ability to draw a greater number of visitors from festivals and larger conferences/conventions. –Consider offering incentives and using a public/private partnership, to develop the hotel. • Action Item 2.2.3 Retain and attract the region’s large public sector employers into downtown San Angelo. –Identify opportunities for large public sector employers to relocate existing facilities into downtown. –Support the retention and expansion of Shannon Health’s existing downtown campus. Goal 2: Continue to invest in downtown San Angelo and the Concho River.
Recommendations Top 5 Priority Recommendations • Strategy 3.2: Leverage ASU’s unique strengths for economic development purposes and provide support to ASU programs and research that are related to San Angelo’s target industries. • Action Item 3.2.1 Building on ASU’s existing strengths in computer science education, partner with Goodfellow Air Force Base to establish a significant academic and research presence in the field of cyber security. •Action Item 3.2.2 Consider funding an endowed chair at ASU or funding individual ASU professors. – Fund research in cyber security or computer science as a first priority. – Fund animal science research as a second priority. • Action Item 3.2.3 Market ASU’s three Programs of Distinction (agriculture, educator preparation, nursing) to the region’s employers and to prospects. • Action Item 3.2.4 Leverage ASU’s association with the Texas Tech University System to identify opportunities to attract education or research functions from Texas Tech University’s Lubbock campus to ASU. Goal 3: Fully capitalize on the unique opportunities provided by Angelo State University and Goodfellow Air Force Base.
Recommendations Top 5 Priority Recommendations • Strategy 4.3: Support and promote San Angelo’s vibrant network of small businesses and entrepreneurs to create a culture of creativity. • Action Item 4.2.1 Hold an annual “Inventors and Investors Symposium” that brings together small business owners, entrepreneurs, inventors, and investors from throughout the Concho Valley region. • Action Item 4.2.2 Building on the success of the Concho Valley Angel Network, promote the growth of start-up companies through closer linkages between locally-based investors, entrepreneurs, and small business owners. • Action Item 4.2.3 Prioritize efforts to support San Angelo’s growing arts and creative class community. –Consider establishing a quarterly Arts Town Hall, which would provide a forum for local artists to engage with public organizations to address any existing barriers to their success. –Work with local artists to protect and expand San Angelo’s emerging arts districts through “art- friendly” zoning and development regulations. –Consider creating an incentive program that provides assistance for the development or expansion of artist studios or artist housing in or near downtown San Angelo. Goal 4: Tap into San Angelo’s innovative culture and leverage small business resources to support entrepreneurship and minority business development.
Recommendations Sector-Specific Strategies: Energy • Develop marketing materials that highlight San Angelo’s location in the top wind energy and oil and gas producing region in the U.S. • Host a regional or state wind energy conference (TREIA or others) and actively participate in major energy conferences (AWEA, Solar Power International, Renewable Energy World Conference). • Identify and market properties that are within the Concho Valley region (but outside of the San Angelo urban area) for large-scale wind farms and solar farms. • More closely link San Angelo’s metal-working industry with renewable energy production equipment. Goal 8: Engage in specific strategies to grow existing and emerging target industry sectors.
Recommendations Sample Performance Metrics Business Climate Entrepreneurship and Small Business Development • Businesses served through the Business Retention and Expansion program (BREP) • Number of small businesses started • Patent creation • Ratings of overall business climate through BREP program • Venture capital and angel capital flow • Growth in small business exports Workforce and Education • Average wage growth Minority Business Development • Local employers’ ratings of workforce • Number of certified minority businesses • Changes in ACT/SAT scores and high school graduation rates • Number of minority businesses started • Minority business revenue growth • Utilization of workforce development programs • Ratings of workforce development programs Sites & Infrastructure • Percentage of workers with an Associate’s Degree or higher, and Bachelor’s Degree • Absorption of commercial and industrial space or higher • Commercial and industrial vacancy rates • Amount of new commercial and industrial space constructed Marketing and Business Development • Available commercial and industrial properties • Number of qualified prospects • Available developable acreage with direct highway access, rail access, and existing utility service • Conversion rates of prospects to new businesses • Available developable acreage with direct highway access and • New jobs generated existing utility service, but without rail access • Average salaries of new jobs • Tax revenues generated Strategy Implementation Plan Outcomes • Successful completion of initiatives (Annual Scorecard) • Return on Investment • Availability and utilization of local and state incentive programs • Performance of businesses receiving incentives
10 Questions to Evaluate this Plan1. Is the plan developed in a collaborative manner?2. Does it reflect and address the current problems and issues facing the community?3. Does it leverage existing strengths, assets and resources?4. Is the plan realistic and market-based?5. Is it focused?6. Is it results-oriented?7. Does the plan enforce accountability?8. Does it help differentiate the community from competitors?9. Does the plan incorporate best practices?10. Is the plan implementable?