020508 Economic Dev Strategy1
CITY OF VIRGINIA BEACH 2007
ECONOMIC DEVELOPMENT
STRATEGY UPDATE
Prepared by: BBPC Associates
February 5, 2008
Agenda
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Work Completed
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Major Issue Areas
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Demographic, Economic, & Market Profile
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Competitive Strengths and Disadvantages
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Economic Development Goals
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Focus Areas
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Highlighted Opportunities in Focus Areas
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Work Completed
3
Stakeholder Interviews
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Field Research
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Completion of Nine Technical
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Memoranda
(Addressing City
Identified Issue Areas)
Staff Review and Consultation
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Preparation of Economic
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Development Strategy
Update 2007
(Demographic,
Economic, and Market Profiles and
Action Agenda)
Virginia Beach Town Center
Work Completed (Contd.)
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Strategy Update: 2000 vs. 2007
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2007 update covered all 2000 Items, Plus:
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Real Estate Market Conditions
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Strengthening of Women and Minority Business Opportunities
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The City’s Coordination with the Hampton Roads Economic
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Development Alliance (HREDA)
Detailed Recommendations Regarding Financing and Funding
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Strategies to Achieve Economic Development
The Firm/Industry Targeting was an Area of Special Focus
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Recommend Monitoring, Reevaluation and Update of 2007 Version of
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Plan Every Two Years to Keep Pace with Changes in Global
Marketplace and City’s Priority Economic Development Goals.
Major Issue Areas
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SWOC Analysis (Compiled
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from Stakeholder Interviews)
Industry Cluster Analysis
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Regional Demographic and
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Economic Trends
Recent Trends -Business
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Growth & Expansion
Real Estate Market and Land
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Use Conditions
Evaluation of HREDA’sRole in
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City Business Recruitment
Major Issue Areas
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Evaluation of Public-Private Partnerships
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Identification of Target Industries and Firms
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Workforce
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Development
Opportunities for
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Women and Minorities
City Job Creation
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Standards
Virginia Beach Higher Education Center
Demographic, Economic, Market Profiles
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Demographic (Includes)Economic (Includes)
Labor Force
Population
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At-Place Employment
Income
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Minority/Women Firms
Diversity
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Home Sales
Active & Retired Military
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Market (Includes)
Business Growth
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Facility/Land Usage Trends
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Submarket Growth Trends
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Vacancies/Lease Rates
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Competitive Strengths and Disadvantages
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Strengths (Selected)
High Quality of Life
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Competitive Land Prices and Rents Relative to Larger
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Urban Centers
Emerging Centers with Urban Amenities
(e.g. dining,
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shopping, entertainment, parking)
Large Regional Labor Force with Desirable Skill Sets
(e.g.
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health care professionals, engineers, computer system professionals,
administrative and office support)
Image from Navy League Hiring Center Website
Competitive Strengths and Disadvantages
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Disadvantages (Selected)
Low Unemployment
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No Direct Port Access
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Limited Transportation/Access
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Options
Limited Land Availability
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Higher Rental Rates Relative to
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Other Areas within the Region
Little or No Existing Spec
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Space
Source: ODU 2007 Office Market Survey
Economic Development Goals
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Achieve Growth in Updated Target Industries.
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Efficiently Utilize Limited Commercial Space and
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Developable Land.
Facilitate Redevelopment of Underutilized Land.
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Enhance Application of Economic Development
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Financing Tools to Achieve Growth in Target
Industries.
Create Opportunities for Suppliers, Distributors and
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Workers with Office-Based Skills in the Area.
Economic Development Goals
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Diversify the City’s Workforce and Job Market.
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Enhance Ability to Secure Major “Deals”with Major
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Employers on National or International Level.
Build upon the City’s Quality of Life and Amenities to
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Recruit Firms Providing Higher-Quality Jobs.
Supply Necessary Infrastructure and Cultivate the
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Professional Agglomeration/Clustering of Firms to
Create Better Business and Employment Environment.
Broad International Presence of Virginia Beach.
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Focus Areas
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Firm/Industry Targeting
1.
Building a Workforce That Supports Desired Industries
2.
Increasing and Enhancing Opportunities for Women
3.
and Minority-owned Firms
Providing Financing/Funding Mechanisms to Recruit
4.
Industries
Providing/Facilitating Identification of Needed Land or
5.
Building Space
Establishing Relationships and Marketing Approaches
6.
Firm/Industry Targeting
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Industry CategoryRecommended Focus Areas
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Science and Architectural and Engineering Services
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Engineering Computer Hardware and Software Development
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Research, Management, Scientific, and Technical Consulting Services
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Management and Information technology development and computer simulation and
Technical Consultingmodeling associated with space (aeronautics) research and
technology
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Information ServicesBroadcasting (Except Internet), particularly cable and other
subscription programming
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Internet Publishing and Broadcasting
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Data Processing, Hosting and Related Services
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High Performance Computer and Electronic Product Manufacturing
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Manufacturing Electrical Equipment, Appliance, and Component Manufacturing
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Aerospace Product and Parts Manufacturing
Firm/Industry Targeting
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Industry CategoryRecommended Focus Areas
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Healthcare and Home health care services
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Medical Technology Community care facilities for the elderly
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Residential mental health and substance abuse facilities
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All other residential care facilities
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Offices of physical, occupational and speech therapists, and
audiologists
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Outpatient care centers, offices of chiropractors, offices of all other
health practitioners
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Management of Hospitality industry
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Companies and Professional associations/organizations representing building
Corporations construction, real estate, facilities management industries
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Insurance company headquarters and Shipping Headquarters
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Construction Building Construction, particularly commercial and multifamily
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Heavy and Civil Engineering Construction, particularly highway,
street and bridge construction
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Specialty Trade Contractors, particularly highly-skilled technicians
(electrical contractors, foundation, structure, and building exterior
contractors)
Workforce Development
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Augment Existing Employer Surveys to Identify the Specific
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Types of Needed Technology Training Programs
Provide Incentives for Workers to Enter High-Demand
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Occupations
(E.G. Reduced Fees or Scholarships, Jobs, Advanced Training
Opportunities , and Executive Mentorship)
Attract New Programs in
Exiting Military Personnel with Target Industry Skill Sets (06-07)
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Emerging Target Industries
(EVMS-ODU MOU Bringing New
Health Care Programs to Virginia
Beach Higher Education Center)
Market Skill Sets of Retiring
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Military to Company Recruits
to Enhance Job
Opportunities
59% of Total 06-07 Exiting Military
Strengthening of Minority & Women
Business Opportunities
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Potential Scope for Minority Business Development
Manager
Attend Conferences Targeting Minority
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Entrepreneurs, Networking Events, Tradeshows,
Continue MBC Expo
Survey Local Swam Businesses to Understand
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Business Needs and Areas of Potential Support
Partner with Educational Institutions
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Partner With Other Agencies/Organizations
(E.G.
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Virginia Minority Supplier Development Council, Greater
Hampton Roads Black Chamber Of Commerce, Hispanic
Chamber Of Commerce, Metropolitan Business League)
Continue to Work Toward Increasing City Awards
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and Expenditures to Minority and Woman Owned
Firms
Focus Efforts on Sizable Firms
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Financing and Funding
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Implement Non-bonding TIF Structures
(I.E. LynnhavenMall)
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Consider CDAsas Another Potential Tool
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Establishing Criteria for TIF Funding Giving Higher Priority to
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Projects Fulfilling Multiple Economic Development Goals
Expand Function and Uses of Special Service Districts (SSDs) to
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Achieve Other Revitalization Goals
(E.G. Marketing, Façade
Improvements)
Strengthen Marketing of IRB and Fast Track Construction Programs
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Incorporate Additional Elements Into EDIPProgram that Further
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Fulfill Economic Development Goals
(I.E. Criteria Focusing on Job Creation
within Target Industries and Above Industry Average Salary Thresholds)
Provide Targeted Incentives for Growth in Target Industries
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Land and Building Space
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Continue to Market More Urban Commercial Areas as Premium
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Locations for Office-based Tenants
Reposition Marketing of Corporate Landing to Highlight Locational
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Strengths
(close to government, housing; sizeable land area)
Extend Parkway Through Corporate
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Landing
Strengthen Targeted Incentives For Infill
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Development in Strategic Growth Areas
Develop Differentiated Strategies to
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Recruit Target Industries
Focus on Development of Spec Space in
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City’s Strategic Growth Areas and
Encourage Green Building Practices
(LEED)
Princess Anne Commons
Relationships and Marketing
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Continue to Engage in Regional Marketing
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Efforts Through Hampton Roads Economic
Development Alliance (HREDA)
Encourage HREDA to Expand on the City’s
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Competitive Advantages and Seek
Businesses Aligned With Target Industries
Strategically Partner with HREDA.
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Increase Virginia Beach Presence at All Marketing Missions in
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Target Industries
Engage in New Regional/National Campaign to Recruit the
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“Creative Class”“Next Generation”-Highlighting City’s High
Quality Amenities, Dining and Entertainment Options, Emerging
Urban Centers, and Plentiful Recreation Options