Ed&t 2014 workshop

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  • Office consists of Director and Assistant
    Because of minimal staff and resources, we have to stay extremely flexible and able to reprioritize projects at the drop of a hat
    And then pick back up where we left off on the first project
    Hard to juggle those balls effectively at times.
    Eco Dev Office must abide by strict confidentiality guidelines.
    Loose Lips Sink Ships
  • To make things better by increasing the local tax base.
  • Relives tax burden off rooftops and residential sector
    Diversifies tax base by having primary businesses to tax
    Increases community wealth and diversity
    Helps pay for streets, libraries, parks, police and fire
    Helps finance quality public schools
  • Strengths, Weaknesses and Threats
    Capitalize on strengths
    Identify and Acknowledge weaknesses and threats
    Address them.
  • Guarantee for the future- give the educated population a reason to be here.
  • A City Must Determine…
    What do you want to look like when you grow up?
    SWAT- Realistic and Honest
  • QoL also commonly referred to as Quality of Place
  • In 1987, economic developers were focused on chasing smokestacks -- wouldn’t consider retail
    Yesterday’s BIG 3 -- GM, Ford, and Chrysler
    Today’s BIG 3 -- HEB, Home Depot, Wal-Mart
  • Towns do not HAVE to offer incentives, but choosing not to is choosing not to seriously participate in Economic Development
    Incentivize and accelerate development
    Sometimes do not pay off
    Sometimes given to companies that would have come anyway
    Are being bid up every day by desperate cities
  • Creative Class:40 million Americans – over a third of our national workforce – who create for a living. This “creative class” is found in a variety of fields, from engineering to theater, biotech to education, architecture to small business. Their choices have already had a huge economic impact. In the future, they will determine how the workplace is organized, what companies will prosper or go bankrupt, and even which cities will thrive or wither.
  • Primary jobs are those that produce something that is consumed outside of the community where the job exists. The revenue it generates is new money to that locale and, therefore adds wealth rather than just spreading the money around. These kinds of jobs are desirable to the economic sustainability of a community because it allows them to generate new money.
  • Primary Jobs are about the flow of money within a community.
  • If PRIMARY jobs are the target, Why a shift to retail?
    Shortage of mfg and primary jobs
    Enhanced quality of life
    Leakage, keep $’s at home, “Shop Kyle”
    Sales tax could be greater than property tax
    Fill service needs of the community
    *Creates Property and Sales Tax dollars that will grow the City tax base not only decreasing the burden of property owners, but generating resources/tools to attract those Primary Employers
  • Company needs, location, mobility, access, etc. determined by demand for their product and access to their customers
    - Supply needs to be where the Demand is.
  • Left- Desired -equal distribution and support of the local economy/demands
    Right- Reflects Current structure
  • Taken from the ED Strategic Plan
  • Team Consists of:
    Other City Departments
    City Committees
    City Council
    Engaged Citizens
    The Business Community
    The School District
    Chamber of Commerce
    Utility providers
    And other community and regional partners and resource agencies
  • ED utilizes marketing strategies targeted at key industries through market specific tradeshows, trade magazines, industry news, etc
    By recruiting and growing local business to lessen the tax burden on existing businesses and home owners.
  • Planning Director has offered to make presentation to ED&T regarding the local development process and planning department in more detail.
  • Training Required: Public Information Act, Ethics
    Misc. committee workshops and annual planning retreat
  • City Leaders: City Boards, Committees and Council
    Must keep a finger on the pulse and remember decisions and policy created today impacts the economic development and growth for the future in one way or another.
  • (Detailed demographic reports available at KyleED.com, and Informational folders provided to interested businesses/prospects)
    2010 Census:
    Pop: 28, 016
    (2000: 5,000)
    Household size: 3.64
    Median Age: 28
    Ave. Household Income: $65,100
    Some College (no degree): 47%
    Bachelor Degree or Higher: 19%
  • Additional Documents/Resources:
    Commonly Used Terms/Concepts
    Key Tools for Successful ED
    Types of Possible Incentives
    Memo: Limited Overview- Economic Development
    City Council Economic Development Vision
    City of Kyle Incentive Policy
    *Kyle Leadership Academy –Every Department and Every Committee of the City Impact ED
  • Ed&t 2014 workshop

    1. 1. City of Kyle Economic Development & Tourism Committee 2014 ED Workshop January 9, 2014
    2. 2. ECONOMIC DEVELOPMENT WHAT IS IT? Why Bother? •Vision •How does economic development work? •What do economic development organizations do and the role of ED staff? •What is the role of the ED&T Committee and City Council?
    3. 3. Vision  "Kyle will be the premier employment center for the southern tier of the Austin metropolitan area and will serve as a destination for the best in shopping, recreation, and living in Hays County." -City of Kyle ED Strategic Plan 2008  Kyle will become a full service community that will continue to grow quality healthcare, higher education and retail industries for the benefit of its residents. -Kyle City Council 2011
    4. 4. What is Economic Development? It is the creation of new tax dollars to grow and diversify the local economy whereby lessening the burden on local tax payers. Is all about OPPORTUNITY To improve the community…..
    5. 5. Economic Development is…  a PROCESS that if successful leads to employment opportunity and wealth creation and improves the Quality of Life of the town,  It’s about economic growth through existing business retention and business recruitment.  Focused on job creation & building community wealth
    6. 6. Economic Development is…  Recognizing our SWAT Capitalizing on Assets And working on Challenges  ED is key to a communities success.
    7. 7. Decrease “ Brain Drain”  Opportunity to create a positive business climate and good jobs  Helps define “what we want to be when we grow up.”  Guarantee for the future
    8. 8. Economic Development vs. Community Development Economic Development A process which improves the economic and cultural well-being of the people Is focused on job creation and building community wealth Community Development A process which builds a desirable and sustainable community Improves the look and feel of a community - - parks and green-space, redevelopment and beautification, and other QOL amenities
    9. 9. The thing about community & economic development………….  There are no right or wrong answers  There are no magic formulas or silver bullets  Every town is unique  Every town must chart its own course  Today’s action -- or inaction -- dictates city future
    10. 10. First things first….  Priorities and vision for community future  What do you want to be  Realistic assessment of assets & liabilities  F O C U S: put chips where you can win  Don’t chase after the latest and greatest economic development fad
    11. 11. Quality of Life -- What is it?  Good schools and low crime  Clean environment & appealing look  Community identity, diversity & PRIDE  Well managed public sector; good value for the tax dollar  Increasing property values
    12. 12. QoL continued…  Connectivity between the city, schools and business  A healthy balance of primary jobs, retail opportunities, and service sector and an active life/work balance  A place where people want to live, raise kids, start a business, invest, and retire
    13. 13. Role of Local Economic Development  Do things that people assume just happen  CARE about business: Creation, Attraction, Retention and Expansion.  Tear down fences and build fences  Maximize economic opportunity for citizens  Promote community to the outside world  Build balanced economy…increase tax base
    14. 14. Business Recruitment  More incentives required to get new companies  Everything has to be ready for companies: real estate, infrastructure, workforce  23 million people in TX today -- est. to be 50 million by year 2040.  Kyle will be the largest City in Hays County within the next 5-8 years. How can we not recruit?  Prospects are usually unreasonable -- Quick turnaround / pages and pages of data / little feedback and strict CONFIDENTIALITY
    15. 15.  “You’ve got to go out on a limb sometimes because that’s where the fruit is.” - Will Rogers
    16. 16. Financial Incentives  A fact of life if you want to recruit high paying jobs and large capital investment  Nothing just happens by accident  Competition for quality jobs is INTENSE  Incentive wars are most competitive in metro areas with multiple communities  In Texas, local governments must put up majority of incentives
    17. 17.  Examples of Types of Incentives: free land  infrastructure  grants and financing for buildings and equipment  working capital loans  relocation expenses  tax rebates  fee waivers   Due diligence: economic impact analysis  cost/benefit analysis  letter of intent  development agreement   the public does matter
    18. 18. Raising the Financial Incentive Bar Google 2007 North Carolina $212 M 210 jobs $1 million per job Sematech Campus 2006 Albany, N.Y. $300 M 450 jobs $667,000 per job ThyssenKrupp 2007 Alabama $822 M 2,700 jobs $305,000 per job Boeing 2009 South Carolina $570 M 3,800 $150,000 per job Kia Motors 2006 Georgia $400 M 2,900 jobs $137,000 per job
    19. 19. Local Case Studies  RSI  Cabela’s  Image Microsystems
    20. 20. OK, Let’s recruit….but what?  Primary jobs  Retail businesses  Tourists & retirees  Creative class, or home based consultants  Big companies, small companies  Real estate developers & investors
    21. 21. What are Primary Employers?  …are companies whose products or services are ultimately used in statewide, national or international markets.  And perhaps more importantly, primary employers create primary jobs
    22. 22. What are Primary Jobs?  Primary jobs are jobs created by manufacturing, professional services, distribution/warehouse, service industry, etc. that produce or sell their services on a regional, state, national or international basis.  Non-Primary jobs (or tertiary jobs) are jobs created in the local area and are the result of the economic development (wealth created by primary jobs) ….e.g., local grocery store, service station or restaurant
    23. 23. Primary Jobs are… Primary jobs are the foundation of local economic development Retail expansion is the product of economic development, not the cause of it Local governments “ profit” from economic growth and development
    24. 24. Employment Multipliers All Jobs Are Not Created Equally – A fast food job creates 1/10 additional job A high-paying manufacturing job creates 2+ spin-off jobs A job at an advanced technology company creates 7 additional jobs One wealthy retiree creates 3 additional jobs
    25. 25. Business Decision Lifecycle
    26. 26. Target Markets Short-Term Targets (represent economic opportunities to which Kyle can begin marketing immediately.) Destination Retail and Leisure  Healthcare Services  Professional Services  Electronics and Technology 
    27. 27. Long-Term Targets (require sustained efforts over a significant period of time) Corporate Business Services and Headquarters  Biomedical and Life Sciences  Logistics and Distribution 
    28. 28. Re ta il l al ia nt enti Resid e sid Re Retail Balanced & Equitable Tax Structure Industrial Industrial
    29. 29. Kyle will build this position as an employment center by:  Supporting the development of a commuter rail station surrounded by dense mixed-use development;  Establishing high standards for new development along I-35 to maximize the impact of new business opportunities;  Unifying the urbanized area;  Bridging the gaps between Kyle’s pool of talent and the lack of local employment opportunities;
    30. 30.  Diversifying the tax base to serve a growing population;  Providing a new outlet for regional economic growth by positioning Kyle as the employment center for Austin region’s southern tier; and  Aggressively promoting a new image of Kyle —internally and externally—as the leader in economic development for the metropolitan region’s southern tier.
    31. 31. What do Economic Development Organizations Do?  The role of an Economic Development Organization is to organize and implement a plan of action to improve the economic wellbeing and quality of life of residents of a given geographic area/region.  Economic Development Organizations are part of a team of players committed to creating and maintaining good jobs and a high quality of life
    32. 32.  Most Important Role of City Staff?  Facilitate processes and accommodate to the extent that local code and ordinances allow.  City of Kyle adds value for businesses in Kyle through the ED Department?  The ED Office visits with prospects, existing businesses, groups and individuals on a regular basis to facilitate/educate on the City of Kyle, local trends and demands, basic processes and referrals to additional resources.
    33. 33. Development Process Zoning Final Plat/ Construction Plan for public in fr a s t r u c t u r e Record the Plat Site D e v e lo p m e n t Permit Building Permit Certificate of Occupancy
    34. 34. Economic Development & Tourism Committee Role  The ED&T Committee is the voice of the community in regards to ED related issues.  Requires Commitment, Confidentiality, Positivity, Support and Vision  Makes recommendations to City Council and plays integral role in the review process of applications for business incentives, policy and plans impacting the future of Economic Development in the City of Kyle.
    35. 35. The Very Best City Leaders Know …  Connections between economic development and other city policies  Their regulatory environment  Their local economic development stakeholders and partners  The needs of your business community
    36. 36. What does Kyle look like? What are the fundamentals of Kyle? (household size, age, income and education)  2012 Population Estimate: 30875  Household Size: 3.23  Median Age: 29  Average Household Income: $65,100  Educational Attainment: (persons 25+yrs)  High School Grad: 89%  Some College (no degree): 31%  Bachelor Degree or Higher: 25%
    37. 37. Some observation’s relevant to Kyle’s current situation ....  A Third Party Perspective- Carlton Schwab, TEDC Your economic development effort is strong for what it is, but woefully behind communities that have the economic development sales tax Buda $1.2 million Bastrop $1.3 million Lockhart $600,000 Pflugerville $2.0 million Kyle $215,000
    38. 38. “As such, you are at a competitive disadvantage for most primary employer opportunities, which makes it extraordinarily difficult to address the housing/jobs mismatch.” -Carlton Schwab, President Texas Economic Development Council
    39. 39. How everyone can help everyday…  Local identity/Community pride  Shop KYLE when possible  Get involved & stay informed  Be Open  Be Open to Change  Change is going to happen with your whether we like it or not. Change is inevitable. -Let’s help direct it.
    40. 40.  “There are at least ninety nine ways to get beat, but only one way to win: get there first” Willie Shoemaker  “Even if you’re on the right track, you’ll get run over if you just sit there.” Will Rogers
    41. 41. Questions, Comments, Observations…

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