Presentation to Arizona Commercial Real Estate Women’s Luncheon, January 2015 Scottsdale Economic Development: Downtown Activity.

Presentation to Arizona Commercial Real Estate Presentation to Arizona Commercial Real Estate Women’s Luncheon, January 2015Women’s Luncheon, January 2015

Scottsdale Economic Scottsdale Economic Development: Development: Downtown ActivityDowntown Activity

OverviewOverview

• Scottsdale Team Focus• Draft Strategic Plan • Downtown Overview• Upcoming Activities

Scottsdale Economic Development Definition Scottsdale Economic Development Definition

“Through its economic development investments and programs, the City of Scottsdale retains, grows and attracts targeted sources of wealth generation to enhance the community’s tax base and quality of life, preserve the natural environment and foster prosperity for all citizens.”

- Job Creation- Job Attraction- Job Retention Enhancing the Tax Base Ultimately, to Improve Quality of Life

Quiz TimeQuiz Time

• Most PROBABLY knew that:– Scottsdale is home to 125+ area golf courses,

resorts, 9,300 hotel rooms and 600 restaurants– Over 300 sunny days per year

• But do they have ANY IDEA that:– 21% of Arizona corporate HQ are in Scottsdale– Scottsdale is a NET IMPORTER of jobs– Top employment in healthcare and social

assistance

Did you know: AZ Venture Capital InvestmentDid you know: AZ Venture Capital Investment

Source: CB Insights Q4 2012 to Q3 2014Arizona: $706.95 million

Scottsdale Team FocusScottsdale Team Focus• Business Attraction– Outside of Arizona, leads generated through brokers,

site selectors, state and regional partners• Business Retention & Expansion – Meet with existing Scottsdale companies

• Redevelopment – Collaborate to redevelop existing sites and identified

corridors of interest• Entrepreneurship + Innovation/ Small Business – Support existing programs and develop new strategies

to assist the local business community

Mid-Year MetricsMid-Year Metrics

• New jobs created/retained in Year 1: 411 (1,475 over 5 years)

• Average wage of jobs: > $61,000• Business retention visits: 51• Capital investment: $15 M• Direct revenue: $3.5 M

Recently Launched ServicesRecently Launched Services

• Recruitment support, executive information

• Welcome support for newly located labor• Extensive marketing and resource

materials• Online property listings• Small business programming

Economic Development Strategic Plan (Draft)

Strategic GoalsStrategic Goals• Scottsdale City Council’s Organizational Strategic

Plan, formally approved in December 2013, provides the foundational underlayment for the economic development strategic framework

• Goals of the Council’s strategic plan:– Value Scottsdale's Unique Lifestyle and Character– Support Economic Vitality– Enhance Neighborhoods– Preserve Meaningful Open Space– Seek Sustainability– Advance Transportation

Draft Economic Development Strategic PlanDraft Economic Development Strategic Plan

1. Retain and grow existing economic drivers and employers2. Support efforts that will enable Scottsdale’s present and

future employers to cultivate, retain and attract the talent that they need

3. Focus efforts and investment in strengthening key employment and business centers

4. Elevate Scottsdale’s engagement in the national and international economic development arena

5. Build a Scottsdale business location brand on par with Scottsdale’s tourism brand

6. Grow and attract quality firms and jobs – domestic and global in targeted sectors

FY 2014/15 Primary ActivitiesFY 2014/15 Primary Activities• Seek Council adoption, and launch

Implementation of Economic Development Strategic Plan

• Business retention program growth, with new service programs launched to help with labor needs and community orientation

• Increase participation in local, regional and state outreach activities with economic development partners

• Development of custom targeted marketing materials for each focused business sector

• Leveraging of economic development with tourism assets and programs to raise business brand awareness

Top Business Decision FactorsTop Business Decision Factors

Site Selection1. Labor costs2. Highway accessibility3. Availability of skilled labor4. Availability of advanced ICT

services5. Occupancy/construction costs6. Energy availability and rates7. Corporate tax rates8. Available buildings9. Tax exemptions10. Low union profile/right to work

Quality of Life1. Low crime rate2. Healthcare facilities3. Housing availability4. Housing costs5. Rating of public schools6. College and university

presence7. Climate8. Recreational opportunities9. Cultural opportunities

Source: Site Selection Magazine, 2012 Annual Corporate Survey

Target Sector Value PropositionsTarget Sector Value Propositions• Bio Life Sciences

– Strong industry cluster provided collaborative efforts between health care provides and innovated research

– Highly skilled and educated workforce in Scottsdale (Average Salary $52,259)• Advanced Business Service

– Very impressive visitor location/appeal for clients and business transactions– Competitive operating cost advantages and affordability of housing

• Information, Communications & Technology– Scottsdale has an enviable record of creating remarkable successful companies that have

rapidly prospered and remained in the city even after outside acquisition.– City boasts a very strong pool of talent. The EMSI database shows 56,000 computer related

occupations in the Phoenix-Mesa-Scottsdale MSA, 18 percent higher than the national average.

• Emerging Enterprise & Entrepreneurship– Cluster of entrepreneurial support organizations and programs– Accessibility to local talent and resources to expand business operations

• Higher Education– Strong network of post secondary institutions in Arizona – Opportunity for employment growth within the education sector

• Hospitality/Visitor Trade and Commerce – Internationally recognized tourism destination – World renowned shopping, entertainment, and amenities provide visitors a unique

experience

Downtown Scottsdale: Evolving Business Hub

A History of Downtown ScottsdaleA History of Downtown Scottsdale

Downtown Scottsdale TODAYDowntown Scottsdale TODAY

• Tourism mecca• Tech hub• Active nightlife• Shifting demographics

$2B in investment has occurred in the last decade.

Downtown In DemandDowntown In Demand

• Citywide office vacancy rate 15% - downtown office vacancy rate 10.7%

• Office space at a premium; contiguous space of 15,000 square feet or greater not attainable in downtown 85251

• Companies want to be located in urban cores providing endless possibilities for their employees

• Shift from where CEO wants to be and more where employees will find happiness and opportunity

Changing Face of DowntownChanging Face of Downtown• Attainable housing in Downtown Scottsdale versus other competitive

markets is very attractive for tech expansions• Downtown Scottsdale provides versatility for the current workforce• While the City has a median age of 46, in Downtown Scottsdale it is 31• The labor force in downtown ZIP code 85251 is 40,715 with an average

earnings of $48,781• 12 month residential list price appreciation in ZIP code 85251 was 24.6

percent

Industry GrowthIndustry GrowthQuarterly and Annual Reports online @ ChooseScottsdale.com

CB Insights, November 2014, Next Silicon Valley

Top Deal Growth MarketTop Deal Growth Market

Luxury Apartment ExplosionLuxury Apartment Explosion

• 2,750 total multi family units approved/ under construction– Optima Sonoran Village– Broadstone Waterfront – Stetson East / West – Portales Place– Envy – Aerium – Enclave at Borgata

Nearby GrowthNearby Growth• New multi-family open/under construction: – SkySong Apartments– Mark Taylor – Las Aguas– The Clayton

• SkySong Phase III • Announcement of SkySong Phase IV• Theranos • Yodle

How Did We Get Here?How Did We Get Here?• Targeted infrastructure improvements• Streamlined the development process with

parking flexibility• Focus on enhancing City services such as

code compliance• New public parking facilities • Canal bank improvements• Arts and culture investment• Streetscape improvements and beautification• Enhanced bus and trolley service

Infill Incentives DistrictInfill Incentives District• Redevelopment Area

designation lifted• Scottsdale opted to

create an Infill Incentive District which uses an overlay to offer greater HEIGHT and DENSITIES in exchange for investment in public art and other improvements

• Adopted in 2010

Additional Creative ApproachesAdditional Creative Approaches

• Connecting new employers with traditional downtown merchants

• Proactively addressing nightlife concerns to enhance safety and manage traffic Public/private partnerships (Museum of the West)

• Mixed Use Public Parking Structures

• Redevelopment property RFP

• Downtown parking solutions analysis

Projects on the HorizonProjects on the Horizon

• Museum of the West• Fashion Square expansion• Waterfront mixed-use project• DeskHub, collaboration among firms• Phoenix Startup Week

Team InformationTeam InformationDanielle Casey, CEcD, [email protected]

Christian GreenEconomic Development ManagerStrategic [email protected]

Rob MillarEconomic Development ManagerBusiness [email protected]

Mark ParatoreEconomic Development SpecialistSmall Business/Workforce/[email protected]

Robert (Bob) TunisEconomic Development Manager Business Retention & [email protected]

More information:More information:ChooseScottsdale.comChooseScottsdale.com

@ScottsdaleEcDev

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