Economic Development Master Plan Phase I

Economic Development Master Plan
Phase One Report
Presentation to City Council
26 July 2012

Master Plan Process Overview
• Phase One: Base Analysis and Existing
Conditions
– Economic and demographic trends
– Sector overviews
Retail and commercial Hospitality and entertainment
Office and Industrial Government and education
Health and wellness Construction and development
Technology

City of College Station Economic Development Master Plan
Phase One Presentation to City Council 26 July 2012

• Phase Two: Evaluation of Opportunities and
Constraints
– Business survey
– Economic development organization, policies,
incentives
– Entertainment districts and redevelopment


• Phase Three: Goals and Strategies
– Staff-authored, consultants advising
– Goals definition
– Implementation strategy


Research Process to Date
• Data
– Census, American Community Survey
– Texas Workforce Commission
– Bureau of Labor Statistics
– Others
• Interviews
– Business owners and bankers
– Economic development, social, and tourism
organizations
– Commercial real estate professionals


Findings: Opportunities and Advantages
• TAMU graduate stream
• Good basic infrastructure and public services
• CISD’s good reputation
• Relatively low cost for good suburban lifestyle
• Good quality of life for families and older
residents
• Active pursuit of knowledge-based industries


Findings: Challenges and Barriers
• Limited commercial air service
• Large stock of older multifamily
• Larger metros’ appeal to new grads and young
adults
• Energy industry consolidation in Houston
• Budget risks for publicly-sponsored ventures
• No real cost of living advantage over suburbs
of large metros

Findings: Challenges and Barriers
• Relatively small size of “adult market” to
offset impact of student population
• Must travel for destination-quality retail and
culture
• Possible trade-offs for high development
standards


Job Growth
Employment as of February Change
(thousands) 2000 - 2008 - 2000 -
Industry 2000 2008 2012 2008 2012 2012
Mining, Logging, and Construction 4,500 7,000 6,500 2,500 (500) 2,000
Manufacturing 5,800 5,500 5,200 (300) (300) (600)
Wholesale Trade 1,400 1,800 1,800 400 - 400
Retail Trade 9,200 10,000 10,300 800 300 1,100
Transportation, Warehousing, and
800 1,400 1,400 600 - 600
Utilities
Information 1,600 1,100 1,200 (500) 100 (400)
Financial Activities 3,300 3,300 3,700 - 400 400
Professional and Business Services 4,900 5,600 6,300 700 700 1,400
Educational and Health Services 7,900 10,000 10,000 2,100 - 2,100
Leisure and Hospitality 7,600 9,900 10,300 2,300 400 2,700
Other Services 2,600 2,900 3,100 300 200 500
Federal Government 1,100 1,000 900 (100) (100) (200)
State Government 23,400 25,400 26,200 2,000 800 2,800
Local Government 8,600 9,900 10,400 1,300 500 1,800
Total Non-Farm Payroll Employment 82,700 94,800 97,300 12,100 2,500 14,600
Source: Texas Workforce Commission


Economy Key Points
• Fastest-growing 9.0%
Unemployment Rate
industries: 8.0%

Restaurants / bars, 7.0%

health care 6.0%

• Large dependence 5.0%

on government / 4.0%

public sector 3.0%
Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

• Unemployment College Station College Station - Bryan MSA Texas

lower than Texas
overall

Population Growth
Census Estimates Change
2000 2010 2000 - 2010
Age Distribution Number Share Number Share Number % Change
Age 0 to 4 3,032 4.5% 4,526 4.8% 1,494 49.3%
Age 5 to 17 6,757 10.0% 9,326 9.9% 2,569 38.0%
Age 18 to 24 34,765 51.2% 44,398 47.3% 9,633 27.7%
Age 25 to 34 8,857 13.0% 13,922 14.8% 5,065 57.2%
Age 35 to 44 5,616 8.3% 7,134 7.6% 1,518 27.0%
Age 45 to 49 2,295 3.4% 2,895 3.1% 600 26.1%
Age 50 to 54 1,776 2.6% 2,901 3.1% 1,125 63.3%
Age 55 to 64 2,331 3.4% 4,380 4.7% 2,049 87.9%
Age 65 and over 2,461 3.6% 4,375 4.7% 1,914 77.8%
Total 67,890 100.0% 93,857 100.0% 25,967 38.2%
Estimated Median Age 21.90 22.30


Demographics Key Points
Census Estimates Change
2000 2010 2000 - 2010
Educational Attainment Number Share Number Share Number % Change
Less than 9th grade 485 2.1% 558 1.5% 73 15.1%

Some High School, no diploma 953 4.1% 930 2.5% -2.4%
(23)
High School Graduate (or GED) 2,845 12.2% 5,618 15.1% 2,773 97.5%

Some College, no degree 4,323 18.6% 6,101 16.4% 1,778 41.1%

Associate Degree 1,156 5.0% 2,455 6.6% 1,299 112.4%

Bachelor's Degree 6,647 28.5% 10,156 27.3% 3,509 52.8%
Graduate or professional
6,892 29.6% 11,384 30.6% 4,492 65.2%
degree
Total 23,301 100.0% 37,203 100.0% 13,902 59.7%


Demographics Key Points
• Concentration of affluent older households
– 38% of CS hh headed by age 25+ had income
$75,000+; 25% for MSA overall
• CS is where knowledge employees reside
– 82.8% of MSA residents with life / physical / social
science occupations live in College Station
• Lower pay in most occupation categories than
TX average


Retail / Commercial
Sales ($
Total Sales (constant dollars)
millions)
$2,000
• Spending recovery
$1,500

$1,000
• Spending / capita low
$500 • Internet threat?
$-
2003 2004 2005 2006 2007 2008 2009 2010 2011
Gross Taxable
• Regional competition
$17,000
Gross Retail Sales per Capita 2011 • Potential for “adult”
$16,000
$15,000
$14,000
retail
$13,000

• Relatively high lease
$12,000
$11,000
$10,000
$9,000
$8,000
rates

Office and Industrial
• Office uses
– Space demand stagnant or declining
– Long term – incremental growth for local
professional services
• Industrial uses
– Employment growth stopped since recession
– Facilities focused in Bryan
– Logistics potential
– Contractors / trades – tied to development activity

Health Care and Wellness
• Significant part of local economy
– 20%+ of job base in greater Brazos Valley region
– 30% job growth projected 2008 – 2018
• College Station residents – high rate of
insurance coverage, attracts health care uses
• New facilities and entities – HSC, Scott and
White, MED campus


Technology
• Economic development focus though still small
part of economy
– Biosciences most visible
– Digital / software developers more under the radar
• Staffing recruitment challenges
– Competition with major metros
– Research vs. commercialization experience
• Energy companies – opportunity or unlikely?

Hospitality and Entertainment
$70,000,000
$60,000,000
$50,000,000
Hotel Revenues
• Recession impact
$40,000,000
$30,000,000
$20,000,000 • Meetings market
$10,000,000
$-
– Facilities limited
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Gross Taxable – Major metro competition
$6,000,000
$5,000,000
Mixed Beverage Sales • Leisure tourism – all
$4,000,000
$3,000,000 TAMU, sports
$2,000,000
$1,000,000
$-
• Potential for non-student
entertainment
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011

College Station Bryan Brazos County


Government and Higher Education
Employer # Employees
Texas A&M University System 1,000 + •Large Number of Government and
Bryan Independent School
District 1,000 +
Higher Education Employers in Area.
St. Joseph Regional Hospital 1,000 +
Sanderson Farms 1,000 +
College Station School District 1,000 + •Nearly 20% employed in “Education,
Reynolds & Reynolds 1,000 + training, and library” occupations.
City of Bryan 500 - 999
City of College Station 501 - 999
Brazos County
Walmart
502 - 999
503 - 999
•State government is the largest
HEB Grocery 504 - 999 industry by employment in the
Scott & White Clinic 505 - 999
College Station Medical Center 506 - 999 College Station – Bryan MSA per the
Texas A&M Health Science
Center 507 - 999
Texas Workforce Commission.
Penncro Associates 508 - 999


Construction and Development
• Sizable employment sector in the MSA.
• Permitting in the MSA ranges from $200M to
$500M valuation annually.
• Significant land exists in and near City
• Annual gross sales of goods related to
construction in City range from $60M to
$110M in the period from 2002 to 2011.
• High location quotient.

Economic Development Master Plan
Questions and Discussion


Economic Development Master Plan Phase I

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