HomeMy WebLinkAbout020508 Economic Dev Strategy1 CITY OF VIRGINIA BEACH 2007 ECONOMIC DEVELOPMENT STRATEGY UPDATE Prepared by: BBPC Associates February 5, 2008 Agenda 2 Work Completed ? Major Issue Areas ? Demographic, Economic, & Market Profile ? Competitive Strengths and Disadvantages ? Economic Development Goals ? Focus Areas ? Highlighted Opportunities in Focus Areas ? Work Completed 3 Stakeholder Interviews ? Field Research ? Completion of Nine Technical ? Memoranda (Addressing City Identified Issue Areas) Staff Review and Consultation ? Preparation of Economic ? Development Strategy Update 2007 (Demographic, Economic, and Market Profiles and Action Agenda) Virginia Beach Town Center Work Completed (Contd.) 4 Strategy Update: 2000 vs. 2007 ? 2007 update covered all 2000 Items, Plus: ? Real Estate Market Conditions ? Strengthening of Women and Minority Business Opportunities ? The City’s Coordination with the Hampton Roads Economic ? Development Alliance (HREDA) Detailed Recommendations Regarding Financing and Funding ? Strategies to Achieve Economic Development The Firm/Industry Targeting was an Area of Special Focus ? Recommend Monitoring, Reevaluation and Update of 2007 Version of ? Plan Every Two Years to Keep Pace with Changes in Global Marketplace and City’s Priority Economic Development Goals. Major Issue Areas 5 SWOC Analysis (Compiled ? from Stakeholder Interviews) Industry Cluster Analysis ? Regional Demographic and ? Economic Trends Recent Trends -Business ? Growth & Expansion Real Estate Market and Land ? Use Conditions Evaluation of HREDA’sRole in ? City Business Recruitment Major Issue Areas 6 Evaluation of Public-Private Partnerships ? Identification of Target Industries and Firms ? Workforce ? Development Opportunities for ? Women and Minorities City Job Creation ? Standards Virginia Beach Higher Education Center Demographic, Economic, Market Profiles 7 Demographic (Includes)Economic (Includes) Labor Force Population ? ? At-Place Employment Income ? ? Minority/Women Firms Diversity ? ? Home Sales Active & Retired Military ? ? Market (Includes) Business Growth ? Facility/Land Usage Trends ? Submarket Growth Trends ? Vacancies/Lease Rates ? Competitive Strengths and Disadvantages 8 Strengths (Selected) High Quality of Life ? Competitive Land Prices and Rents Relative to Larger ? Urban Centers Emerging Centers with Urban Amenities (e.g. dining, ? shopping, entertainment, parking) Large Regional Labor Force with Desirable Skill Sets (e.g. ? health care professionals, engineers, computer system professionals, administrative and office support) Image from Navy League Hiring Center Website Competitive Strengths and Disadvantages 9 Disadvantages (Selected) Low Unemployment ? No Direct Port Access ? Limited Transportation/Access ? Options Limited Land Availability ? Higher Rental Rates Relative to ? Other Areas within the Region Little or No Existing Spec ? Space Source: ODU 2007 Office Market Survey Economic Development Goals 10 Achieve Growth in Updated Target Industries. ? Efficiently Utilize Limited Commercial Space and ? Developable Land. Facilitate Redevelopment of Underutilized Land. ? Enhance Application of Economic Development ? Financing Tools to Achieve Growth in Target Industries. Create Opportunities for Suppliers, Distributors and ? Workers with Office-Based Skills in the Area. Economic Development Goals 11 Diversify the City’s Workforce and Job Market. ? Enhance Ability to Secure Major “Deals”with Major ? Employers on National or International Level. Build upon the City’s Quality of Life and Amenities to ? Recruit Firms Providing Higher-Quality Jobs. Supply Necessary Infrastructure and Cultivate the ? Professional Agglomeration/Clustering of Firms to Create Better Business and Employment Environment. Broad International Presence of Virginia Beach. ? Focus Areas 12 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 13 Industry CategoryRecommended Focus Areas ? Science and Architectural and Engineering Services ? Engineering Computer Hardware and Software Development ? Research, Management, Scientific, and Technical Consulting Services ? Management and Information technology development and computer simulation and Technical Consultingmodeling associated with space (aeronautics) research and technology ? Information ServicesBroadcasting (Except Internet), particularly cable and other subscription programming ? Internet Publishing and Broadcasting ? Data Processing, Hosting and Related Services ? High Performance Computer and Electronic Product Manufacturing ? Manufacturing Electrical Equipment, Appliance, and Component Manufacturing ? Aerospace Product and Parts Manufacturing Firm/Industry Targeting 14 Industry CategoryRecommended Focus Areas ? Healthcare and Home health care services ? Medical Technology Community care facilities for the elderly ? Residential mental health and substance abuse facilities ? All other residential care facilities ? Offices of physical, occupational and speech therapists, and audiologists ? Outpatient care centers, offices of chiropractors, offices of all other health practitioners ? Management of Hospitality industry ? Companies and Professional associations/organizations representing building Corporations construction, real estate, facilities management industries ? Insurance company headquarters and Shipping Headquarters ? Construction Building Construction, particularly commercial and multifamily ? Heavy and Civil Engineering Construction, particularly highway, street and bridge construction ? Specialty Trade Contractors, particularly highly-skilled technicians (electrical contractors, foundation, structure, and building exterior contractors) Workforce Development 15 Augment Existing Employer Surveys to Identify the Specific ? Types of Needed Technology Training Programs Provide Incentives for Workers to Enter High-Demand ? 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) ? Emerging Target Industries (EVMS-ODU MOU Bringing New Health Care Programs to Virginia Beach Higher Education Center) Market Skill Sets of Retiring ? Military to Company Recruits to Enhance Job Opportunities 59% of Total 06-07 Exiting Military Strengthening of Minority & Women Business Opportunities 16 Potential Scope for Minority Business Development Manager Attend Conferences Targeting Minority ? Entrepreneurs, Networking Events, Tradeshows, Continue MBC Expo Survey Local Swam Businesses to Understand ? Business Needs and Areas of Potential Support Partner with Educational Institutions ? Partner With Other Agencies/Organizations (E.G. ? 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 ? and Expenditures to Minority and Woman Owned Firms Focus Efforts on Sizable Firms ? Financing and Funding 17 Implement Non-bonding TIF Structures (I.E. LynnhavenMall) ? Consider CDAsas Another Potential Tool ? Establishing Criteria for TIF Funding Giving Higher Priority to ? Projects Fulfilling Multiple Economic Development Goals Expand Function and Uses of Special Service Districts (SSDs) to ? Achieve Other Revitalization Goals (E.G. Marketing, Façade Improvements) Strengthen Marketing of IRB and Fast Track Construction Programs ? Incorporate Additional Elements Into EDIPProgram that Further ? 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 ? Land and Building Space 18 Continue to Market More Urban Commercial Areas as Premium ? Locations for Office-based Tenants Reposition Marketing of Corporate Landing to Highlight Locational ? Strengths (close to government, housing; sizeable land area) Extend Parkway Through Corporate ? Landing Strengthen Targeted Incentives For Infill ? Development in Strategic Growth Areas Develop Differentiated Strategies to ? Recruit Target Industries Focus on Development of Spec Space in ? City’s Strategic Growth Areas and Encourage Green Building Practices (LEED) Princess Anne Commons Relationships and Marketing 19 Continue to Engage in Regional Marketing ? Efforts Through Hampton Roads Economic Development Alliance (HREDA) Encourage HREDA to Expand on the City’s ? Competitive Advantages and Seek Businesses Aligned With Target Industries Strategically Partner with HREDA. ? Increase Virginia Beach Presence at All Marketing Missions in ? Target Industries Engage in New Regional/National Campaign to Recruit the ? “Creative Class”“Next Generation”-Highlighting City’s High Quality Amenities, Dining and Entertainment Options, Emerging Urban Centers, and Plentiful Recreation Options