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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/08/2011 - ECONOMIC HEALTH UPDATE DATE: March 8, 2011 STAFF: Mike Freeman, Josh Birks WORK SESSION ITEM Christina Vincent FORT COLLINS CITY COUNCIL Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php SUBJECT FOR DISCUSSION Economic Health Update. EXECUTIVE SUMMARY The overall economic health goal is to "promote a healthy, sustainable economy reflecting the values of our unique community in a changing world." The City has strong partnerships with diverse organizations, strategic marketing and promotion of the area to new and expanding businesses,and the City continues to focus on retaining and growing quality primary jobs while also focusing on retaining and building the retail sector. The greatest task slated for 2011 will be the update to the Economic Action Plan. It has been several years since the last update was completed and the economic climate has changed in that timeframe. The current economic strategies continue to serve the City well, but it is time to critically evaluate the current strategy and map out the City's next steps. The City has faced challenges such as broad economic slowdown,decrease in sales tax collections,decrease in use tax collections,and financing difficulties for developers. Through the voter approved Keep Fort Collins Great Ballot measure, there are now funds available for the update of the Economic Action Plan. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED The presentation will provide City Councilwith an economic health update for 2011. The discussion will focus on highlighting strategies for achieving economic health in 2011 and beyond. This presentation is the first of two planned for 2011. Staff will address suggestions and questions from City Council. BACKGROUND / DISCUSSION In 2004, City Council appointed a group of community representatives to develop a set of recommendations intended to address the economic vitality and sustainability of Fort Collins. Members of the "Economic Vitality and Sustainability Action Group" (EVSAG) met for two years and created an economic strategy map for the City to follow in order to achieve economic success and longevity. March 8, 2011 Page 2 A major outcome of EVSAG was the Economic Action Plan. The Action Plan consists of four key strategies for economic health: • Diversify the economy • Build partnerships • Support business expansion and attraction • Be proactive on economic issues. City Council is updated periodically on implementation of the Economic Action Plan. This presentation will focus on priorities for 2011. ATTACHMENTS 1. Power point presentation ATTACHMENT 1 City Council 2011 Economic Update One March 8 , 2011 ary o+ 1 �—��ins BUSINESS INNOVATION MODEL Pre-Incubation Incubation F" Retention . Attraction Clean Energy Cluster Larimer Bioscience Cluster J Water Innovation Cluster aty of 2 FO► 1� Whits 1 Economic Action Plan Update `n c Ins 3 Economic Action Plan Update • Economic Action Plan has served the City well • Need to update the plan for the coming 4 to 6 years • Funded with Keep Fort Collins Great ( 213 funds ) — $ 150 , 000 budget Fort Collins 4 l' 2 Scope of Plan Update • Review Existing Economic Action Plan • Evaluate Cluster Development Strategy • Review Business Incubation Strategy • Review Business Communications Plan • Review Business Retention & Expansion Program • Identify Best Practices • Benchmark Fort Collins • Multi -year Action Plan / Budget/ Key Milestones Fort Collins 5 r— Schedule/ Process • Consultant Selection : April 22 , 2011 • Project Commencement : May 2 , 2011 • City Council Work Session : May 2011 • Plan Development : May — July 2011 • Stakeholder Input : July/August 2011 • City Council Work Session : October 2011 • Plan Approval : November/ December 2011 Fort Collins 6 3 ECONOMIC ACTION PLAN STRATEGIES Four key strategies - - Business retention, expansion, incubation and attraction — Be proactive on economic issues — Build partnerships — Diversify the economy ory o+ 7 _��s BUSINESS RETENTION , EXPANSION , INCUBATION & ATTRACTION • Mayor and City Manager business retention visits • Formal Business Retention & Expansion program • Project management on expansion projects • Commercial brokers meetings and property owners support • Continue multi -faceted incubation programs — Engines and Energy Conversion Lab — Rocky Mountain Innosphere — CSU ' s Research Innovation Center Fort Collins 8 4 URA PROJECTS • Annual report for first five years of URA • Benchmarking regional URAs • Project Management for approved projects • Ribbon Cutting events ( North College Marketplace and Kaufman & Robinson ) • Project Management for potential new plan areas ( Midtown , Prospect South ) • Developer Luncheon ,,�,rt�ollins 9 Midtown Existing Conditions Survey • Action item from redevelopment study • Legal determination of " blight" • Study and field work currently underway • Evaluation of blight in concentrated areas • Public open house & outreach - April • Work Session on draft report — late April • City Council to accept report — mid May • Final Council decision — late July Fort Collins 10 5 Foothills Redevelopment • Continued dialogue with General Growth Properties • Working towards a redevelopment agreement • Likely a phased program over several years • More to come over the next six months Gty of ollins o BUSINESS COMMUNICATIONS Economic E - Newsletter — 100 + businesses and local organizations featured in 2010 — Nearly 900 subscribers Updated industry cluster profiles — Available electronically , fcgov. com/business FortZED . com FortCollinslnnovation . com Shop Fort Collins First—liaison and support targeted campaigns Fort Collins 12 6 BE PROACTIVE ON ECONOMIC ISSUES Infrastructure investments — Fort Collins-Loveland Airport — NECCO Stormwater improvements — 1 -25/Hwy 392 Partnership ICSC : International Council of Shopping Centers Conference Evaluation of Manufacturing Use Tax of `A Cottins 13 BUILD PARTNERSHIPS • Colorado State University 0 — Research Foundation cioiz — Ventures — Superclusters University • DDA collaboration NORTHERN • Larimer Small Business C O L O R A D O Development CenterL L • NCEDC site selection inquiries Ecoxonuc usvtLOPnlsrrr • Larimer County Workforce CORPORATION 14 �1 7 DIVERSIFY THE ECONOMY Cny of 15 1W COLORADO CLEAN ENERGY CLUSTER 2010 — 2015 Strategic Plan clean Retain and expand existing companies C energy cluster — 1650 new primary jobs ~ Attract/ Incubate 6 -8 new businesses per year — Emphasis on HQ companies Project of regional significance - _ •- — 1 year: CO State Land Board , Project of global significance — 5 years - FortZED 16 8 Supply Chain Demonstrations Global Expansion/ Competitiveness Cluster Resiliency ! i ! ! • , , � RESfq �9 �a F + ENERGY fi c RENEWABLE GONSERVAIIQN o CENERGY & EFFICIENCY m z � m z � a ENERGY STORAGE & SMART o LOAD MGMT. GRID a. 2 � �v QJ ECONOMIC DEVELOPMENT i FORT awg i � Y ZED FortZED Progress to Date ,_.Q • Renewable and Distributed Systems Integration Project ($11M) — Aggregating 24 distributed assets across 5 sites to demonstrate 20% peak load reduction on two distribution feeders • Renewable Energy Communities Grant ($3M) — Energy efficiency and renewable energy on public buildings • Smart-Grid Investment Grant ($34M) — Metering , controls, and system upgrades for residential and commercial accounts city-wide • Green Restaurant Initiative (volunteer base) — Voluntary energy efficiency and communications campaign targeting restaurants and consumers • Community Energy Challenge (volunteer base) — Outreach initiative in FortZED to educate, engage and empower residents to get involved �Ort of CdllnS 19 ICN Work Plan A } inrernaTiona � K • Over the next five years , establish aeaniecH this strong international network of neTWOrK cleantech clusters • Colorado Clean Energy Cluster and Copenhagen Cleantech Cluster have signed a partnership agreement regarding : - build up of the network ` C � [olotodo ean - running and heading of ICN oft. energy 4/ _ - creation of a shared knowledge platform - project management of 20 Fort,��ll�ns 10 Colorado Clean Energy Supply Chain Initiative Improving the competiveness of Colorado clean energy companies • Establish an understanding of supply chain performance and needs • Provide an effective on -the-ground channel to support businesses First action -focused initiative to expand and strengthen the statewide clean energy supply chain • An identified priority by economic development organizations • A repeated request by Clean Energy companies • Fits with CCEC task oriented approach • Partnering state-wide Mclean ' C' energy Ouster ndombin 2011 Strategy • Strategic meetings held with key stakeholders • Collaborative agreement with CBSA to provide local programs and services to Northern Colorado • March - Announce joint NoCoBio director role with RMI and CSU - RIC • Create NoCoBio Investor group Fort Collins 22 f- 11 nocobio nonhem colorado biok 2011 Strategy - Continued • RMI appointed to committee with Faegre & Benson/ Fitzsimons Life Science for review/approval of CBSA Biobootcamp program and content • RMI hosts CBSA in May for Innovation After Hours • RMI accepts management of Colorado BioSage advisor group • Creation of RMI/Kauffman BioFastTrac content, coaches and coalition CRY of 23 Cxlll�ns Wo�� COLORA DO 6 WRTER INNOVFMON CLUSTER Leverages the abilities of members to produce long -term solutions to global water issues . Goals 1 . Establish our region as a global leader in water innovation 2 . Increase regional water- related technology commercialization 3 . Contribute to the economic vitality of our community . CRY of 24 ' CoWns '�s 12 na CO LORA DO Projects WATER INNOVATION W)SfER • Watershed Academy — Summary : Create an internationally unique training and research infrastructure to spur innovation in instrumentation , monitoring , and info . technologies • Ag to Urban Water Rights Transfer — Summary : Proof of concept , agriculture to urban water rights transfer through use of deficit irrigation , crop rotation , and selective fallowing ; collaboration with Lake Canal CRY of coffins 25 Engine Cluster Vision Statement : The Colorado Engines Technology Cluster leverages the abilities of our members to establish Colorado as a globally recognized leader in engine related technology, and to develop and commercialize innovative engine technologies that are more efficient and reduce harmful emissions, contributing to the economic vitality of our community. * boy e • Ctty of 26 ns 13 Engine Cluster Outcomes • Economic Development . ( Revenue , Investments , Grants , SBIR ' s ) • Create Primary Jobs , Businesses , Diversity • Attract , Develop & Retain Qualified Workforce • Grow Open Innovation • Engine Related Initiatives/ Demonstration Projects S ""`fCofts 27 UNIQUELY FORT COLLINS • Be Local Northern Colorado — Indoor Winter Farmer' s Market — Business web search engine — 20/20 pledge — Pocket guides • Shop Fort Collins First • • — Spring into Action <<iN — Home for the Holidays of 28 14 12.0% Unemployment Trend 10.0% 9. 8.9% 8.0% .1% 6.0% 4.0% 2.0% United States Colorado Fort Collins iiii 2005 2006 2007 2008 2009 2010 2 ee 85,000 Fort Collins Total Employment Trend 80,000 76,689 7 75,000 6,586 70,000 65,000 Source: Bureau of labor Statistics 60,000 2003 2004 2005 2006 200711 � 111111 200111 �78 2011 �09 2010 30 15 III Bioscience Employment 2, 141 2,017 2,037 25073 2007 2008 2009 2010 Source: Colorado Slate Uniwrsity C,.,N�+o ffins 31 �.tJ��`IJ Bioscience Composition Am X n.ee rtp.a I mid noa�aa�r.dRa.� w TGdA*W Sw*w a ra.�� sue. Rrek�.� Fort Collins 32 wrNaH 'ti_r� 16 Clean Energy Employment 21979 31133 33078 2,481 2007 2008 2009 2010 Source: Colorado State University SCR t .._ 33 ns Clean Energy Composition NNhYwyNYnll164uiy II RA.l�Or41. SrDEREit arrIV&ASi ubm C i9rt4vtk atyor �rt�ns 34 17 Hardware/Software Employment 6,726 6 ,353 61183 5,946 2 1 , 992 ,200 1 ,681 47265 49361 41526 2007 2008 2009 2010 Source: Colorado State University City of = 35 ��$ Hardware/Software Composition t � ce Prri�rr� Sdr�Elfa a% aTxm no.rra A WS OW Srra PM cMMMMr a 6eavre Wift %W& rffMIL Fort Collins 36 18 Water Innovation Employment 11365 11374 11406 1 ,222 IN 2007 2008 2009 2010 Source: Colorado State University 'Cain„ 37 lM111J Uniquely Fort Collins Employment 19083 15091 1 ,020 15046 2007 2008 2009 2010 Source: Colorado State University cfty of 38 19