2016 Tempe, Arizona State of the City Address
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Tempe Mayor Mark Mitchell gives the annual address for the City of Tempe, Arizona. This speech focuses on how the people and businesses of Tempe are using technology to change the world for the better.
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2016 Tempe, Arizona State of the City Address
- 5. ASU Biodesign Institute 14 acres 800,000 square feet Opens June 2018
- 6. ASU BIODESIGN INSTITUTE BY THE NUMBERS 18 startup companies 72 patents 640 inventions 1,600 jobs $115.3 million economic impact $1.4 billion gross state product impact
- 11. The Grand 58.5 acres at Priest and Washington 3.2 million square feet Office, residential, hotel, retail and restaurant First tenant: SAP America
- 26. Saving lives with ZMapp, the first successful treatment against Ebola.
- 31. 330 acres in central Tempe 7 million square feet Office, retail, hotel and residential space
- 33. $1.4 billion Economic Impact Generates 16,100 Jobs R&D Tenants: 51
- 36. Thank you for helping Tempe change the world.
Editor's Notes
- You know, before this current age of technology we are living in, we lived in a wonderful utopia that I call…, “the 80s.”
- Me, I had my old truck and I was riding high playing on the McClintock High football and baseball teams.
- And an app, well that was something that you filled out to get a job…; the web was something that my mom often dusted out of the corner of my room…; And a gig was a show that a few of my friends played on a Saturday night…; Life was easy living. There was no phone in your pocket…, no internet at your fingertips…, and the best kind of advice we were given, was to “Be kind and rewind.”
- But I also have to say, when you look at the hustle and bustle of today—When a twitter outage can trigger a national crisis—well, it may have been a little bit boring. When I think about how far we have come since the 80s, well, it’s astounding. We’ve mapped the human genome, we reached the surface of Mars, and we’re now accessible everywhere we go with the use of cell phones.
- I really started thinking about the tech transformation that we’ve undergone as a society when I was at the groundbreaking back in October for Arizona State University’s new Biodesign Building C. President Crow was telling the audience about the amazing work that happens at the Biodesign Institute and it really got me thinking about how ASU’s focus on the “new frontier of science,” has helped transform not only the university…, not only our community…, but our world!
- The Biodesign Institute is the largest single investment in research infrastructure in Arizona history. That investment represents a new type of research enterprise, one with 14 different research centers studying topics ranging from the human genome to carbon-free biofuel to infectious diseases. Here to tell us about the impact of the BioDesign Institute is Dianne Price from ASU. (Watch the video: https://www.youtube.com/watch?v=FJUOp3XWHnM)
- Thanks, Dianne. All of us know someone affected by cancer. It’s great to hear we’re making what could be some real progress there. And all those patents and inventions that Dianne mentioned? They translate into employment, and in the future, they’ll add over 3,000 jobs to our local economy each year! When you consider these numbers, you can’t help but get excited about a new Biodesign building. And Building C is going to double the Institute’s size.
- And you know what’s totally awesome? Building C will house the world’s first compact X-RAY laser! It’s like something out of a James Bond movie. I’m telling you, I haven’t had a science class in over 20 years and EVEN I’M geeking out. Usually, these lasers cost billions of dollars to build and can literally be MILES long. There are only a few of them in the world, making it very difficult for scientists to even get access to one. The compact X-RAY laser being designed for Building C will fit on a tabletop and will be accessible to scientists who are trying to cure some of our most devastating diseases. It will be able to see things that a conventional X-RAY cannot. Can you imagine the impact this could have on the world of medicine? And how this could revolutionize early detection of cancers?
- This morning, I could’ve talked to you how Tempe has announced the addition of more than 18,000 jobs since I took office in 2012 and seen $2.3 billion dollars in capital investment. And I would have said that our central location near Sky Harbor airport and our educated workforce, make us a great place to work. Or I could’ve shared how the city is investing $49 million dollars over the next 5 years in our parks, making Tempe a great place to live. I could’ve even touched on the fact that our coveted downtown and Tempe Town Lake, which is the second most visited tourism attraction in the state by the way, makes this a great place to play. This is all true, but you’ve heard me talk about all these things before. After thinking about the impact of the Biodesign Institute, I decided that this morning, I wanted to focus on how Tempe is helping to improve our world-- through education, incubation and innovation. And how in Tempe, we can say it and mean it— We are busy changing the world!
- The truth is-- Tempe is a magnet for technology. Nearly 15,000 people work in technology in Tempe and that number is growing every day. This year alone, nearly 2000 jobs have been created by tech companies in Tempe, including companies such as SAP America, ZipRecruiter, and Willis Towers Watson. SAP America was the first to sign on to the Grand at Papago Park Center, taking 40,000 square feet of workspace that’s going to house 275 employees. It’s an enhanced data management company that works with 300,000 clients around the world.
- SAP is just the first company to sign on, but when The Grand is done, it’s going to have 3.2 million square feet of mixed-use office, multifamily, hotel, retail and restaurant space. That’s plenty of space to attract any number of diverse companies to our borders. You’ve all probably seen the commercials for ZipRecruiter on TV, right? ZipRecruiter is using tech to innovate the job search and they recently chose to come to Tempe for its first expansion out of California. When at full capacity, they will be employing upwards of 300 employees at their Hayden Ferry Lakeside location. They’ve had over a million companies use their service! And as for Willis Towers Watson, a global brokerage firm, they are bringing more than 400 jobs to their new technology service center just to the north of the Grand at Papago Park Center. This center will eventually have up to 800 employees! We’re so happy to welcome them and their employees to Tempe.
- One thing I’ve noticed lately is that the era of winning jobs and investment by being the low cost provider is coming to an end in economic development. It’s not about being the community that offers the lowest cost of doing business. Companies want to attract the best workers in their field and they want to offer their employees a great quality of life. They want to be in cities that make smart and strategic investments and have an educational community committed to innovation and partnering with the business community.
- Our investment in infrastructure, transportation, public safety and education has helped to attract some of the highest quality developments in the state. Our forefathers didn’t build Tempe for a race to the bottom. And it’s worked. On average in Tempe, tech jobs pay nearly $80,000 annually. They are a necessary component of a high-wage, high-value environment that creates the economic returns necessary to maintain the high quality of life and amenities that our residents deserve.
- A big reason companies from out of state look at Tempe is our educated workforce. We are lucky enough to surround ASU, which for the second year running has been ranked as the #1 University for Innovation by the U.S. News and World Report. Just last month, ADP, a business solutions and human resource specialist, announced that they were expanding to downtown Tempe and bringing 1,500 jobs for a major business operations center. When asked by the Phoenix Business Journal why they chose Tempe, the answer was simple. ADP said they liked our proximity to ASU and said the primary reason they chose Tempe was our talent pool. And their second selling point? It was our community’s diversity. This move from a company with 55,000 employees and $11.7 billion dollars in annual revenue speaks volumes that Tempe is on the right track.
- Tempe is also home to the Maricopa Community College District, one of the largest community college districts in the nation, the Southwest College of Naturopathic Medicine, and the University of Advancing Technology. Having these options is so important for youth these days, because in the near future, in fact, by 2020, 68% of all jobs in Arizona will require a postsecondary education. I recently got a chance to visit UAT. You may not know this, but UAT recently awarded me an honorary doctorate degree. Yep, that’s right, I’m Dr. Mayor Mitchell. And I never get sick of my staff or my daughters calling me that. At UAT, the faculty and students openly describe themselves as a collection of tech geeks. But UAT turns these tech geeks into the technology executives and master programmers of tomorrow. They learn how to use the most advanced technologies imaginable and how to transform them into the next generation product. But don’t take my word for it, here’s David Bolman, Provost of UAT, to tell you about how his students are busy changing the world. Watch the vide: https://www.youtube.com/watch?v=bg9nf8LanYY
- UAT actually offers a government recognized Cyber Security Degree for ethical hackers and it was the first in the state do to so. They have a Warfare Range that they call their Cybersecurity Cave. Right here in Tempe, UAT teaches their students to stop online hackers from wreaking havoc on local governments and businesses. UAT has helped prepare more graduates with a NSA credentialed education than any other university in the southwest.
- UAT is also home to the largest game design studio in Arizona and offers a Virtual Reality or VR bachelor’s degree! When I heard this… I thought, I have to check this out. I have to say, I don’t know how they do it, but experiencing virtual reality was pretty amazing. I got to try a game that a student designed in just two days! And I don’t want to brag, but I was a natural. Don’t believe me? Check out the video! Watch video of Mayor Mitchell playing a VR game: https://youtu.be/-imRAI97vV8 See? I’m a natural! I bet you didn’t know I was so agile. And UAT is preparing students to take this technology to the next level! You may have met Ryan McDonald and Kenneth Vorseth in the lobby this morning. Ryan and Kenneth are students at UAT who have been working for the last few months to build their own version of a virtual reality head mounted display otherwise known as HMD. They focused on creating a quality HMD for an affordable price. And if you tried out their headset this morning, well, you know they are succeeding. With the ingenuity of these UAT students, the possibilities could be endless.
- Mayors from across the State of Arizona have taken a real interest in K-12 education and ensuring that it is properly funded. I belong to the Mayors Education Roundtable, a WestEd initiative. It started with just 10 mayors and provided us with an opportunity to get together in a room and share how we work with our school districts. We even let Tucson join!
- We’ve been making some progress, but one initiative that the group is working on comes out of Tucson. A few years ago, Mayor Rothschild started Steps to Success, an initiative where he personally knocks on the doors of young people who have dropped out of school. It’s been so successful that we are implementing it in the Tempe Union High School District this January.
- We may not agree on much, but this is one area where Tempe and Tucson can work together. Go Devils!
- And while Arizona’s reputation is for not putting enough money into K-12 education, Tempe has worked hard to build a strong K-12 system, both through our districts and our charitable organizations, like the Tempe Diablos, Commitment to Schools and the Tempe Impact Education Foundation. The Tempe Elementary and Kyrene School Districts offer outstanding learning opportunities for our kids and they help prepare students to succeed in high school. In fact, Tempe Union has five high schools that have earned the A+ School of Excellence Award from the Arizona Educational Foundation over the last five years. It’s no wonder that we have such a talented workforce in Tempe. We have worked for years building the foundation for a strong educational system.
- When you have great schools and great universities, you open the door to individuals who want to grow their ideas in your city. The Council wanted to foster an environment where incubation is encouraged. We started to look at our city facilities to figure how a space could be repurposed to grow small business. What we really wanted was to see how we could help businesses start, grow and thrive in Tempe. In last year’s State of the City, I announced our new Business Resource Innovation Center also known as the BRiC. We transformed a room in the Tempe Public Library into a resource to those writing a business plan, or just looking for some mentoring or networking opportunities.
- The BRiC just completed its third month and the results are encouraging. The grand opening saw more than 60 businesses and community partners. Since then, more than 270 business owners, students, and entrepreneurs have utilized the center for workshops, mentoring, and co-working. We even have a success story already. A local health tech company that won the 2016 Governor’s Start-up Company Innovator of the Year Award uses BRiC for co-working and will use it until their office space in Tempe is ready. Life365 is recognized for their cloud-based platform, RAIN, which helps health professionals and family members monitor a patient’s medical devices remotely. This is literally a life-saving endeavor, and Life365 and their 5 employees are getting it done using our facility. As we move into the new year, it’s going to be even busier at BRiC with more than 50 workshops, meeting reservations, and business mentoring sessions already scheduled. Clearly, our local entrepreneurs are loving and using this service.
- At the same time we were opening the BRiC, we were also looking at how we could best transform the former Tempe Performing Arts Center on 6th Street. This building has a creative past. It was once the home to Childsplay and the Stray Cat Theater, but it needed some new life. And with a creative building, we wanted a creative venture. And what we got was an artistic and innovative project. A fashion incubator! Only a handful of cities in the US have art and fashion facilities to support new designers and economic development. So of course, we were excited when we learned that Angela Johnson and Sherri Barry chose to create a fashion incubator and apparel manufacturing facility right in our downtown. Currently the fashion incubator is just getting started. Folks have been moving into their offices, and will soon begin to offer clients services. And their opening is next Saturday on December 10th. I’d be the first to admit, I’m no fashionista. I mean, I may still have a few OP board shorts and IZOD polos in my closet… But one thing I do know is that independent fashion brands are becoming more and more common. We have websites like Etsy and Pinterest that show us every day how creative individuals can be. The problem is that for the most part fashion manufacturing is outsourced overseas. This makes it very hard for new designers and other creative folks to produce their own products. The fashion incubator, because it’s also a manufacturing facility, will solve that issue. Now, I know what you’re thinking, what does a fashion incubator have to do with tech? Well, you’d be surprised. Here to tell us a little bit about the incubator and about how fashion and technology are helping to change the world is Angela Johnson, the Founder of LabelHorde. WATCH VIDEO: https://www.youtube.com/watch?v=KkGZ-4jo2PU
- Wow, Angela, that is amazing, especially in a world where the Zika virus is a major issue, it sounds like Pesky Apparel has an innovative solution that could make all the difference. LabelHorde is also going to be using new technology to help merge fashion with wearable tech and they’re working to provide 3D digital fabric printing. Design and production right at your fingertips!
- And with incubation, comes innovation. With ASU within our borders, Tempe always has a great partner in innovation. We already talked a bit about the Biodesign Institute and what it means to Tempe and the world, and Building C will increase the research of the Institute by 500%. This can only add to their number of world changing innovations to date. Remember the Ebola outbreak of 2014? It was the Biodesign Institute that helped create a drug treatment that was used to fight the disease. The treatment, called ZMapp, may have saved the lives of 5 individuals who became infected. And of all things, the ASU professor involved used specially modified tobacco plants to produce the antibodies needed to fight the disease!
- Another spinoff of the Biodesign Institute is HealthTell, which developed an immuno-signature technology to measure a person’s immune system. Two researchers wanted to change the world of medicine by focusing on detecting diseases before they cause symptoms. They decided to look at the millions of antibodies that we all have in our bodies and try to get a snapshot of the immune system.
- It’s a complicated process but basically, they can use a single drop of blood to create an antibody portrait. That’s it behind me. While this may look like a piece of modern art to some, HealthTell can use this immuno-signature to detect cancer and other diseases earlier. This technology will change the way doctors practice medicine in the future.
- But the Biodesign Institute isn’t the only innovative project ASU is partnering with Tempe on. The ASU Athletic Facilities District is becoming a model for innovative planning and sustainable and smart development. Catellus, ASU’s master developer has been working on the preliminary master plan of the district which includes new and renovated NCAA athletic facilities, including Sun Devil Stadium. ASU is going to transform the stadium into a year-round community hub.
- When I was growing up, Sun Devil Stadium was it. It was the place. It was known for concerts, great NFL and college football and even hosted the Pope. In fact, I have pretty fond memories of my mom taking me to the Rolling Stones Concert there when I was in junior high. That wasn’t awkward AT ALL… And now, as a dad, I’m looking forward to being able to have that same experience with my girls. I’m sure that they’ll be just as mortified as I was, but hey that’s one of the pleasures of being a parent. I can’t wait to see the Biebs in person.
- But seriously, as for the land surrounding the stadium, its transformation will be the most significant project within Tempe since Tempe Town Lake was created nearly 20 years ago. At build out, the 330 acres will house more than seven million square feet of office, multifamily residential, hospitality and retail space. ASU and Catellus also plan for an interconnected space, with sidewalks, bicycle paths and green spaces. As we speak, Catellus is getting ready to move forward on the newest phase of the project. Look for announcements regarding the area’s first office, multifamily and retail activities in early 2017. And I’m sure you all heard the news that the district could include the new arena for the Arizona Coyotes and ASU. We are just at the early stages of discussions with ASU, Catellus, and the Coyotes, and it’s still a preliminary concept. Of course, we’re going to have a lot of conversations moving forward as a Council and as a community before any action is taken. But of course, it’s always nice to be in demand.
- And with all of this innovation coming out of ASU, the City of Tempe is working on a little innovation of our own. Recently, the Council agreed to move forward on the development of our first biomedical and technology campus on the 18 acres of city land west of the Tempe Center for the Arts. We are currently in the process of branding the site and working with the developer to finalize an agreement. But the proposed project includes five, mid-rise office buildings totaling approximately 1 million square feet! The Innovation Hub, as we’re calling it, is going to focus on tech and life science jobs. We’ve already proven we have a strong bio tech base, with over 150 bio and life science companies who employ close to 6500 people in our community. Building this campus will benefit the region! Especially if we can help to meet the demand for research facilities and specialized lab space. At the beginning of this speech we talked about the Biodesign Institute and the impact they are having on the world. Just imagine the opportunities and partnerships that a new biomedical and technology campus can bring. And this will only add to the mix of cutting-edge businesses that benefit our community and set Tempe apart. Businesses like-- Dufl: Located in the downtown, Dufl is a personal valet that will ensure that you’ll never have to carry a suitcase again. They send you a suitcase to fill up, come and pick it up and then actually unpack, clean and dry clean your clothes before sending it on to its final destination. Talk about no hassle!
- And Iridium: Located in the ASU Research Park, Iridium is the world’s only global mobile satellite communications company. They use low orbiting cross-linked satellites and have the world’s largest commercial constellation network. The defense department and other agencies often use their constellation to communicate across land, sea, and air. They make it possible to communicate to every corner of the earth.
- I did want to touch on our social innovation as well, because while economic or tech innovation is big right now, it’s the cultural aspects of a community that attract residents to it. And we’re big on social innovation, like looking at ways that we can help our businesses ensure that they are providing equal pay for all of their employees OR creating a local opioid epidemic plan to address the rise in overdoses due to addiction to prescription pain relievers and heroin. We also enacted an anti-discrimination ordinance so that all of our residents and visitors can feel safe and protected in Tempe. And close to my heart, is our initiative to become Dementia Friendly. Establishing Tempe as one of the Nation’s first Dementia Friendly Cities with Dementia Friendly America is personal to me. My mom was first diagnosed with mild cognitive impairment 8 years ago. Since then, my family has been through a lot of ups and downs. I’d done some research about some cities in Minnesota that were going through the process of becoming dementia friendly, and I thought, wow, this could have a real effect on Tempe.
- A big part of becoming dementia friendly is informing the public and preparing for the future growth of dementia in all of our communities. Arizona will see a 71% increase in residents with dementia over the next 10 years. That is the biggest projected increase of any state in the country. With our dementia friendly initiative, I’m hoping that we can prove we are not powerless against this devastating disease. If we can change the life of even one person affected by the disease or their care-partner, then it will be well worth it.
- Being the Mayor of this community is one of the great honors of my life. I’ve been fortunate, that the policies put in place by this Council and previous ones have created the strong economic environment we find ourselves in today. There’s no doubt about it, the state of our city is strong. It’s strong because of the relationships that we’ve fostered with our local partners, partners like LabelHorde, UAT and ASU. Let’s hear from them one more time about how they feel about being in Tempe. Watch video: https://youtu.be/bMsr69tEVT0 I’d like to thank Dianne Price, Dave Bohman and Angela Johnson for being willing to share their Tempe experience with you. Through education, incubation and innovation, their endeavors are clearly changing our world for the better. I’d like end this morning with a long list of thank yous. First, I’d like to thank my fellow Council colleagues Vice Mayor Arredondo-Savage, and Councilmembers Kuby and Keating for being here today. It’s a pleasure to work with you every day to help make this a better community. I’d also like to thank all our city staff. We would not be the remarkable, strong city that we are without your hard work. Please know that your work is appreciated. And a special thank you to our former Tempe elected officials here. It was the vision of formal Councils that got Tempe to this place. You made investments in the Town Lake, the downtown, the lightrail, the transit system, our neighborhood parks. You helped create this community. And of course, my dad. I’d also like to thank my regional colleagues that are here: Maricopa County Supervisor, Denny Barney; Gilbert Mayor, Jenn Daniels; Mesa Mayor, John Giles, and Queen Creek Councilmember, Dawn Oliphant. I would like to thank the Chamber of Commerce and their new CEO, Anne Gill. She and her team do a lot to make sure this breakfast is successful and the seats are filled. And speaking of filled seats, I also want to thank the hard working people from the Doubletree who set up the room, prepared our food, and are serving us today. Thank you for helping make this a great event. And finally, I would like to thank all of you! You are all part of the innovation happening in Tempe, so please continue to change the world for the better. I hope to see you at my STATE of the NEIGHBORHOODS on April 22, 2017. Have a great morning!