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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/27/2012 - UPDATE ON THE ECONOMIC HEALTH STRATEGIC PLANNING PDATE: March 27, 2012 STAFF: Bruce Hendee Josh Birks Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION Update on the Economic Health Strategic Planning Process. EXECUTIVE SUMMARY The City of Fort Collins’ Economic Action Plan was first developed in 2005 and has been updated annually as part of the Budgeting for Outcomes process. Now, more than five years later, it is time to re-evaluate the Economic Action Plan and develop a revised Economic Health Strategic Plan. City Council approved $150,000 in one-time funding from the Keep Fort Collins Great funding allocation for this project in 2011. TIP Strategies from Austin, TX was selected to lead this process. TIP staff was present at the May 10, 2011 Work Session to present their overall scope of services and have an initial conversation with the City Council about the project. TIP staff returned on July 12, 2011 to present the Draft Economic Assessment and sought input on a draft strengths, weaknesses, opportunities, and threats (SWOT) analysis and potential list of benchmark communities. On December 13, 2011, TIP staff presented an overview of the Draft Economic Health Strategic Plan and sought feedback on the initial draft from City Council. The final plan is intended to refine the mission of the Economic Health Office and provide an action plan for the next five years. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does City Council have any overall comments or concerns with the Plan, as revised? 2. Does City Council feel the revised Vision statement and guiding principles resonate with community values? 3. Do the four key objectives, which provide broad direction to the City and community, encompass the activities necessary to preserve our Economic Health? 4. Does City Council agree with TIP and staff’s recommendation regarding the implementation strategy options? 5. Is the Plan ready to be brought to City Council for consideration? March 27, 2012 Page 2 BACKGROUND / DISCUSSION The City of Fort Collins’ Economic Action Plan was first developed in 2005 and updated annually as part of the Budgeting for Outcomes process. Now, more than five years later, it is time to reevaluate the Economic Action Plan and develop a revised Economic Health Strategic Plan. The City sought proposals from experienced teams to craft a five-year Economic Health Strategic Plan. TIP Strategies from Austin, TX was selected to lead this process. TIP staff was present at the May 10, 2011 Work Session to present their overall scope of services and have an initial conversation with the City Council about the project. TIP staff returned on July 12, 2011 to present the Draft Economic Assessment and sought input on a draft strengths, weaknesses, opportunities, and threats (SWOT) analysis and potential list of benchmark communities. On December 13, 2011, TIP staff presented an overview of the Draft Economic Health Strategic Plan (the Plan) and sought feedback on the initial draft from City Council. The plan is intended to refine the mission of the Economic Health Office and provide an action plan for the next five years. Plan Overview The draft Plan is founded the guiding principal of “A Healthy, Resilient Economy.” The Plan proposes that such an economy contains three essential ingredients: • Create more and better economic opportunity for our community; • Diversify the tax base to help insulate Fort Collins from economic fluctuations; and • Preserve Fort Collins’ unique quality of place and culture. The draft Plan refines the Economic Health Vision for Fort Collins into a unifying thread / theme that can span across the principle projects, collaboration, research, and city policies related to promoting a vibrant, resilient economy in Fort Collins. The draft vision follows: “Pioneering a healthy economy through quality of place, innovation and stewardship.” The draft Plan proposes a variety of action steps organized around four key objectives. These objectives include: 1. A stronger support network for existing employers, new businesses, and small business. 2. An innovation ecosystem that supports companies at all stages of growth. 3. A talent management system that anticipates employer’s needs. 4. High quality assets and infrastructure that reflect the values of the community. Changes Since December Based on feedback from City Council, stakeholders, and public comment, the Plan changed in the following substantial ways since the December 13, 2011 draft. • The “underemployment” issue was renamed “skills mismatch” to reflect comments from the City Council and the Workforce Investment Board regarding manufacturer’s inability to find certain skilled workers. March 27, 2012 Page 3 • An “About the Plan” section was added to the introduction to explain the planning process. • The plan objectives were restructured placing all the organizational recommendations in a separate implementation section. Objective 1 now emphasizes supporting existing businesses, much of this language was in the previous draft just embedded in the organizational language. • Language was added to the introduction to recognize the previous economic health planning efforts. • The “Challenges” section of the introduction was restructured to be a section on “Strengths, Weaknesses, Opportunities, and Threats.” The section includes the SWOT graphic from the assessment appendix. A summary of the Strengths and Opportunities (CSU, Innovation Infrastructure, Educated Workforce) was added and the “Challenges” section was renamed “Weaknesses/Threats” but the text did not change materially (other than previously noted). • Direct references to contracts with specific community partners were removed and the implementation section revised to present a menu of options, including the TIP and staff recommendation to work collaboratively with community partners. Implementation Strategy/Matrix As indicated above, the revised draft Plan now includes a section on Implementation. The Plan is ambitious and builds upon the success of the 2005 Economic Action Plan and the Plan Fort Collins comprehensive plan. Though ambitious, the objectives and strategies laid out in this plan are realistic and manageable. However, the plan will require a strengthening of the City’s capacity for economic initiatives. Therefore, the plan presents three implementation strategies, including: • Partially implement the plan with existing resources; • Expand the Economic Health Office to build capacity to implement the plan internally; or • Leverage relationships with community partners to extend the reach of City resources. TIP and staff recommend pursuing the third option. In addition, the draft Plan includes an Implementation Matrix that can be used to prioritize individual tasks, assign staff/partners, and update the status. The Economic Health Office will use this matrix to make regular updates to City Council. Performance Measures The draft Plan also provides a list of performance measures organized into three categories: Community, Strategic, and Operational. Below is a quick listing of the performance measures by category: March 27, 2012 Page 4 Community Strategic Operational Creating Economic Opportunity • Job Growth • Wage Growth • Underemployment Diversify the Tax Base • Growth of commercial tax base • Growth of retail sales • Private industry’s share of jobs Innovate and Entrepreneurship • Tech Commercialization • New Business Formation • Capital Access • Wealth Creation Retention and Expansion • Companies Assisted and Retained • Jobs Assisted/Created • Average wages of jobs assisted/created • Dollars invested • Companies lost Talent Management • Community Survey Results • Job Placement Quality of Place • Investment in Redevelopment Areas • Amount of development in redevelopment areas • Leverage of City’s investment Community Partners • Leverage of City’s investment • Jobs Created • Average wages of jobs assisted/created Industry Clusters Industry Clusters • Leverage of City’s Investment • Growth in Industry Cluster Jobs • Establishments • Patents • Capital Investment Business Assistance • Private Investment to Public Assistance • Jobs Assisted/Created • Average wages of jobs assisted/created • Tax base implications March 27, 2012 Page 5 ATTACHMENTS 1. Draft Economic Health Strategic Plan – March 2012 2. City Council Work Session Summary, May 10, 2011 3. City Council Work Session Summary, July 12, 2011 4. City Council Work Session Summary, December 13, 2011 5. Economic Advisory Commission – relevant meeting minutes, various dates 6. PowerPoint presentation 106 East 6th Street, Suite 550 | Austin, Texas 78701 | 512.343.9113 | www.tipstrategies.com ECONOMIC HEALTH STRATEGIC PLAN March 2012 ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 1 SUMMARY TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................ 1 ACKNOWLEDGEMENTS ............................................................................................................. 3 INTRODUCTION ........................................................................................................................... 4 ABOUT THE PLAN ........................................................................................................................ 4 STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS ............................................................... 5 THE RESPONSE ........................................................................................................................ 10 FRAMEWORK ............................................................................................................................ 12 GUIDING PRINCIPLES FOR ECONOMIC HEALTH ............................................................................ 12 VISION ..................................................................................................................................... 13 OBJECTIVES ............................................................................................................................. 14 OBJECTIVE 1 ............................................................................................................................. 15 STRATEGIES ............................................................................................................................. 16 OBJECTIVE 2 ............................................................................................................................. 18 STRATEGIES ............................................................................................................................. 20 OBJECTIVE 3 ............................................................................................................................. 25 STRATEGIES: ............................................................................................................................ 27 OBJECTIVE 4 ............................................................................................................................. 33 STRATEGIES: ............................................................................................................................ 35 IMPLEMENTATION .................................................................................................................... 41 ORGANIZATIONAL STRUCTURE ................................................................................................... 41 ABOUT US TIP STRATEGIES, INC. is a privately held Austin-based economic development consulting firm committed to providing quality solutions for public and private-sector clients. Established in 1995, the firm's primary focus is economic development strategic planning. Jon Roberts, Managing Director Caroline Alexander, Project Manager Kathleen Baireuther, Consultant ATLAS ADVERTISING has helped 60+ communities in 35+ states lead and support economic growth and development in their communities. They have helped organizations face the national and prospect marketplace in ways they have never done before, increasing inquiry levels, prospect activity, and stakeholder engagement. Ben Wright, CEO Peter Brown, Creative Director Keeley Sullivan, Senior Account Manager ISAAC BARCHAS, executive director of the Austin Technology Incubator, is a national expert in commercialization/technology transfer and a global expert in business incubation and entrepreneurial support. During his tenure with the University of Texas, he has served as the director of the Austin Technology Incubator and as associate director of the IC2 Institute. In addition, Isaac has acted as advisor on incubation and commercialization strategy to teams from multiple nations. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 2 SUMMARY IMPLEMENTATION MATRIX............................................................................................................................................................................................................. 45 PERFORMANCE MEASURES .......................................................................................................................................................................................................... 58 APPENDIX A: ASSESSMENT ....................................................................................................................................................................................................... 61 ABOUT THE DATA ......................................................................................................................................................................................................................... 61 SUMMARY OF DATA FINDINGS ....................................................................................................................................................................................................... 62 SWOT ........................................................................................................................................................................................................................................ 64 APPENDIX B: SUMMARY OF PUBLIC INPUT ........................................................................................................................................................................... 109 INTERVIEWEES AND FOCUS GROUP PARTICIPANTS ...................................................................................................................................................................... 109 PUBLIC INPUT SUMMARY ............................................................................................................................................................................................................ 109 OPPORTUNITY WORKSHOP PARTICIPANTS .................................................................................................................................................................................. 111 AUSTIN VISIT ATTENDEES & OUTCOMES ..................................................................................................................................................................................... 112 DRAFT PLAN – FEEDBACK AND REVISIONS .................................................................................................................................................................................. 112 APPENDIX C: BENCHMARK RESEARCH ................................................................................................................................................................................. 113 APPENDIX D: INNOVATION ECOSYSTEM ASSESSMENT (ISAAC BARCHAS) .................................................................................................................... 126 INNOVATION ECOSYSTEM ........................................................................................................................................................................................................... 126 ROCKY MOUNTAIN INNOSPHERE (RMI) ....................................................................................................................................................................................... 130 ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 3 SUMMARY ACKNOWLEDGEMENTS TIP Strategies, Atlas Advertising, and Isaac Barchas would like to thank the many individuals who participated in the development of this plan. We are particularly grateful to the business and public sector representatives who generously gave their time and input. Their knowledge and creativity contributed greatly to our understanding of Fort Collins’ development opportunities and our recommendations. We would also like to thank the leadership, staff, and the Economic Advisory Commission of the City of Fort Collins for their critical guidance, support, and feedback. Mayor and City Council Karen Weitkunat, Mayor Kelly Ohlson, Mayor Pro Tem, District 5 Ben Manvel, Councilmember, District 1 Lisa Poppaw, Councilmember, District 2 Aislinn Kottwitz, Councilmember, District 3 Wade Troxell, Councilmember, District 4 Gerry Horak, Councilmember, District 6 The Economic Advisory Commission Stu MacMillan Bill Timpson Christophe Febvre Rick Price Channing Arndt Michael Kulischeck Blue Hovatter Jim Clark Sam Solt City Manager Darin Atteberry, City Manager Bruce Hendee, Chief Sustainability Officer Economic Health Josh Birks, Economic Advisor Claire Thomas, Marketing and Publicity Specialist Megan Bolin, Planner Urban Renewal Authority Christina Vincent, Redevelopment Program Administrator ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 4 INTRODUCTION INTRODUCTION Fort Collins enjoys an economic, social, and environmental vibrancy that is the envy of many communities its size. Economic engines that include Colorado State University, Poudre Valley Health System, Hewlett Packard, and Woodward employ almost 13,000 workers and represent a diverse array of industry sectors. A burgeoning culture of entrepreneurship has produced a number of home-grown companies whose products now reach markets across the world. These include New Belgium Brewery, Otterbox, and Envirofit. Furthermore, the city’s location, at the foothills of the Rocky Mountains along the Poudre River, provides residents and visitors with access to a wide-array of natural amenities. The lively historic downtown and the city’s impressive network of parks, trails, and open space are yet other community assets that contribute to Fort Collins’ growing reputation. The City implements a broad array of programs and services focused on preserving and enhancing this vibrancy. Until the mid-2000s, however, the economy was not a specific focus. In 2005, the City Council embraced a new direction in response to the economic downturn of 2000 to 2003, triggered by the bursting of the technology bubble, and a grass roots movement known as the Economic Vitality and Sustainability Action Group. The foundation of this new direction was the adoption of an Economic Vision and Values statement. This Vision and Values statement sought to balance the community’s values of stewardship and quality of place with a more active role in economic health. The City Council then approved an Economic Action Plan. The Action Plan built upon the Economic Vision and Values statement. In the past seven years, the Economic Health Office (EHO) has completed many of the items in the Action Plan, including a target industry study, a sales tax analysis tool, hired an economic staff lead, improved the development review process, and developed an economic health communication plan. About the Plan In May 2011, the City, with the assistance of the TIP Strategies team, began work on the 2012 Economic Health Strategic Plan (EHSP). Through a series of interviews and focus groups that included 60 people, 2 stakeholder workshops, and a public open house, TIP and City staff 2005 ECONOMIC VISION “A healthy economy reflecting the values of our unique community in a changing world.” 2005 ECONOMIC VALUES  The primary keys to our unique identity and economic health are:  The natural environment  Old Town / Downtown  Colorado State University  Culture and the arts  We value to Poudre R-1 Schools, Front Range Community College, and our other educational institutions and the quality education they provide.  Sustainability and economic health are strengthened through community partnerships and collaborations.  We value the next generation of citizens and their quality of life as much as our own.  We value businesses that contribute to the economic, environmental, social, and cultural health of our community.  Supporting innovation and growing businesses from within are important to economic health.  We value our existing businesses and the prospect of welcoming new businesses.  We value a City organization that is:  Proactive about our economy  Responsive to our business concerns  Municipal services contribute to making Fort Collins a great and visionary city and depend on a healthy economy that fuels a reliable revenue stream. DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 5 INTRODUCTION gathered the input to inform this plan’s understanding of Fort Collins, its culture, and its values. From the first meeting, it was clear that this was not an ordinary plan. The plan would need to reflect the unique community character of Fort Collins. Innovation and entrepreneurship, along with an emphasis on the local economy, would form the foundation of the plan. Furthermore, the existing focus of the Economic Health Office was reinforced as business retention, expansion, and incubation. The City’s role in business attraction would be limited to the pro-active recruitment of companies that fill specific gaps in the target industry clusters. (See Appendix B for a summary of public input). At the same time, the consulting team was tasked with providing a data-driven analysis to understand the economy, the regional workforce, and the city’s economic drivers. To create the plan, the team drew upon these sources of input, along with experience and knowledge of how other communities have tackled the issues that Fort Collins faces. The end result is the plan set forth on the following pages. The plan presents a city-wide - and community-driven - response to economic health. The City cannot, however, implement this plan alone. It will require the support of stakeholders and a collaborative approach. This outcome creates a stronger EHSP because it recognizes the ability of the City to leverage community organizations and stakeholders invested in economic health. These include Colorado State University, the Small Business Development Center, Larimer County Workforce Center, Northern Colorado Economic Development Corporation, Rocky Mountain Innosphere, UniverCity Connections, the Chamber, and many others. The final section of this plan addresses implementation and outlines a series of tasks and community partners that might assist in implementation. Finally, the plan also recognizes that numerous private sector stakeholders share an interest in the health and resiliency of the local economy. In many cases, these same stakeholders have a vested interest in the economic health of Fort Collins. A collaborative approach allows for the City to engage with these stakeholders and ensure that the community’s values and character are conveyed in the Fort Collins story that is shared with an external audience. This engagement permits the City to influence economic outcomes and development patterns to a greater degree. Strengths, Weaknesses, Opportunities, Threats TIP conducted an economic development Strength, Opportunities, Weakness, and Threats (SWOT) analysis of the economic health assets and opportunities in the City. The analysis is based on a review of economic, demographic, and workforce characteristics, interviews with local and regional business and community leaders, and TIP’s experience working with communities and regions across the country. The analysis provides context for this plan, specifically the framework and objectives. A graphical summary is presented on the next page. More in-depth descriptions of the most important topics follow. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 6 INTRODUCTION WEAKNESSES STRENGTHS THREATS OPPORTUNITIES growing clean energy & bioscience clusters state/regional economy ability to attract executives I-25 Corridor federal export initiative may open new opportunities for local producers R&D at federal labs & CSU open labor networks growing global demand for US products and services favorable exchange rate for US$benefits exporters collaborate more closely with CSU natural assets / outdoor playground top 5 states to do business (CNBC) fiscal sustainability educated workforce proximity to Denver regional ED collaboration with Denver, Boulder, climateSprings Colorado change unstable commodity markets immigration restrictions political instability and regional growth DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 7 INTRODUCTION Strengths/Opportunities Colorado State University (CSU). Colorado State University’s role in Fort Collins reaches far beyond being a higher education provider. CSU enrolls over 30,000 students, bringing almost 7,000 new students to Fort Collins every year. This fact makes CSU the city’s primary magnet for attracting talented young people. It is also Fort Collins’ largest employer, with 6, 100 workers. Additionally, CSU serves as a primary economic engine for the City, both in terms of tax revenue and innovation. A 2009 study of the economic impact of CSU states that: “CSU employees generate 11% of household income in Fort Collins, which is over $250 million annually. The combination of CSU employees and students accounts for almost 16% of the total tax revenue for the City of Fort Collins. An additional 600 jobs are supported in Fort Collins alone by an estimated $168 million in annual student spending on housing, food, entertainment, and more. The total CSU effect on local Fort Collins tax revenue is almost $13 million.” The University spends over $300 million annually on research, which fuels the innovation economy in Fort Collins. This has translated into 20 new start-up companies in the past 5 years, many of which reside in Fort Collins, and 136 innovations licensed to Colorado companies. The health of Fort Collins is tied closely to the strength of CSU. Nurturing this relationship and seeking ways to strengthen the Town-Gown partnership will be a key to the City’s economic health and stability. Innovation Infrastructure. Fort Collins is fortunate to have prolific sources of intellectual property and research to fuel its innovation economy. As mentioned above, CSU spends over $300 million annually on research. Aside from the inventions and start-up companies that these research dollars generate, the University has a number of centers focused on applied and translational research in partnership with outside entities. For example, the Judson M. Harper Research Complex, which includes the Research Innovation Center (RIC), and the Engines and Energy Conversion Lab (EECL), partners with federal and private entities to advance research related to their areas of specialization – infectious disease and engines, respectively. In addition, Fort Collins is home to the 30-acre Natural Resources Research Center (NRRC), which is a partnership between CSU, the US General Services Administration, and six federal agencies, including the US Geological Survey (USGS), the US Department of Agriculture (USDA), and the US Department of the Interior. Many of Fort Collins’ large technology companies such as HP, Intel, and Avago also conduct research in Fort Collins. For example, HP has a state-of-the-art research facility to investigate sustainable data center technologies, and Intel has a design center that focuses on software development as well as microprocessor development. This research SAMPLE OF FORT COLLINS RESEARCH EXPERTISE Global Health: Regional Biocontainment Laboratory Rocky Mountain Regional Center of Excellence Vector-Borne Infectious Disease Research Natural Resource Management: USGS Fort Collins Science Center USDA National Wildlife Research Center Engines: Engines & Energy Conversion Laboratory Hardware & Software: HP Intel Design Center ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 8 INTRODUCTION infrastructure is the foundation for Fort Collins’ innovation economy. These sources of innovation are accompanied by a growing ecosystem of entrepreneurs and support organizations that can help take these ideas from concept to product. As this ecosystem grows and develops, Fort Collins can gain international prominence for innovative companies. Educated Workforce. The City of Fort Collins has one of the most educated adult populations in the nation. 49% of the population 25 and older has a bachelor’s degree or higher. At the national level, only 28% of the population has a bachelor’s degree or higher. Only 6% of Fort Collins’ adult population has no high school diploma. Since high educational attainment is a positive indicator of workforce quality, Fort Collins certainly excels in this area. Furthermore, educational attainment has a wide range of societal benefits. A better educated population is associated with higher incomes, lower levels of unemployment and poverty, lower smoking rates, better personal health, and lower incarceration rates. It is also correlated with higher levels of civic participation. Weaknesses/Threats Economic Cycles. Though the local economy out-performed the national economy throughout most of the 1990s, more recently it has closely tracked the national economy. In addition, the 2000 and 2008 recessions put the economy and its health at the forefront of the City’s mind, demonstrating that Fort Collins is not insulated from powerful economic shocks. When the Internet bubble burst, Fort Collins’ unemployment rate doubled, reaching almost 6%. More recently, during the Great Recession, unemployment peaked at 8.5%. In comparison to the national economy, which reached a peak unemployment rate of 9.7%, Fort Collins fared well. Nevertheless, the effects of the economic downturn were deeply felt by many in the community, particularly by the 7,000 unemployed residents. Skills Mismatch. Over 40% of the population age 25 or older has an advanced degree. However, close to two-thirds of the jobs require only on-the-job training or prior experience. This poses a threat to the city’s employers who may have trouble finding talent locally to fill open positions. The regional manufacturers, in particular, have voiced concerns about finding workers to fill production occupations (such as machinists). In addition, the skills mismatch creates both opportunities and challenges for the City. Many residents are willing to accept jobs for which they are over qualified in order to live in Fort Collins. The result is an untapped well of skill capacity that, if utilized, allows the community to prosper economically without having to grow in terms of population. Other residents, however, choose to look outside of Fort Collins for work. This creates a situation where highly educated residents must commute to other communities for UNEMPLOYMENT RATES COMPARED Source: US Bureau of Labor Statistics, LAUS. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 9 INTRODUCTION work and local employers must recruit outside the city to find workers. This can cause additional stress to regional transportation networks and have social impacts in areas such as the community’s quality of life, family stability, and general well-being. In any case, bringing the skills of residents and the talent requirements of employers into balance can greatly benefit the city. It enhances local employers’ abilities to fill open positions with local talent. It also creates an opportunity to move under-employed people into better jobs and to move unemployed people into the jobs those under-employed occupied. Expanding labor force participation by adding high quality jobs will also have a positive impact on the earnings of many households in the city, which, in turn, has a positive effect on the economy. Fiscal Sustainability. With a significant dependence on sales tax revenues, the city is overly vulnerable to business cycles and retail competition from surrounding communities. During the most recent recession, sales tax collections dropped from $77 million in 2007 to $71 million in 2009. By 2010, tax receipts had recovered to $74 million, but three years of low sales tax collections forced the City to make dramatic budget cuts. These cuts, however, were on top of previous cuts in planned and existing expenses that had been made over the course of the past 5 years. By 2010, the City had significant unfunded current and future needs in areas such as street maintenance, public safety, and parks and recreation. In 2010, there was a successful campaign to raise the sales tax rate by .85%, which went into effect on January 1, 2011. This alleviated the current situation, but the City’s fiscal situation remains vulnerable to further economic stresses. Diversifying the City’s tax base away from sales tax is one method to secure Fort Collins’ fiscal future. This can result in larger and more stable tax revenues for the City without having to increase taxes. Expanding the industrial and commercial tax base grows the City’s property tax receipts. This would also likely create more jobs in Fort Collins, keeping employees and their spending in the community. In addition, projects such as a conference center and hotel could expand both the commercial tax base and generate more hotel occupancy taxes. While development will continue to occur organically in the community, the City’s participation in encouraging the diversification of its tax base should be careful and deliberate to ensure that development is in line with its vision, culture, and values. Economic Diversification. The Fort Collins economy is relatively diverse, with 12 industry sectors that employ over 5,000 residents. Of these 12 sectors, half pay less than the Metropolitan Statistical Area’s (MSA) average wages, and all but one sector pays less than the national average for those sectors. In addition, five of the top employers are in the government sector. In fact, the government sector is the MSA’s largest, accounting for 15% of all jobs. While the public sector provides high quality jobs for residents, it does not directly add to the tax base of the city, especially since its property is tax-exempt. MAJOR SOURCES OF TAX REVENUE Source: City of Fort Collins, 2011-2012 Biennial Budget; Larimer County Assessor's Office. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 10 INTRODUCTION The city’s manufacturing sector, which accounted for 11% of the MSA’s jobs in 2001, contracted dramatically over the course of the decade and currently accounts for only 6% of the jobs. Between 2001 and 2010, the sector lost almost 7,000 jobs. At the same time, Fort Collins’ GDP for the sector rose from $1.1 billion to $1.7 billion, or 56%. This rise in productivity has led to a transformation of the sector, leaving a significant portion of the workforce either unemployed or uncertain of their future. This transformation has also created opportunities for innovative models and technological solutions to address the new needs of the sector. These considerations highlight the importance of diversifying the regional economy. To raise wages, expand the tax base, redeploy its production workers, and capture a part of the new manufacturing sector, the City must be vigilant and creative on economic issues. The Response The Economic Health Strategic Plan (EHSP) is a response to these strengths, weaknesses, opportunities, and threats. The foundation of this response is the reinforcing and, in some cases, formalizing the City’s relationships with local economic development community partners. This leverages the City’s resources devoted to economic health and increases the City’s overall capacity for economic health programs. Doing so could have a significant impact on the overall vitality of the city. Support Network. Strengthening the support network for businesses in Fort Collins is the first objective of the plan. This recognizes that existing employers and small businesses are the backbone of Fort Collins. Many of the programs to support these businesses are already in place. Greater collaboration among economic development partners and an expansion of the offerings will provide tangible benefits to Fort Collins businesses. Innovation Ecosystem. The 2012 EHSP proposes a variety of strategies to strengthen the city and region’s innovation ecosystem. The goals are to create a more entrepreneurial culture, to enhance the city’s ability to retain successful companies, and JOB BASE BY INDUSTRY SECTOR IN THE FORT COLLINS Source: EMSI Complete Employment - 2011.2 MANUFACTURING SECTOR IN THE FORT COLLINS MSA Source: U.S. Bureau of Economic Analysis. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 11 INTRODUCTION to support a pool of talented workers of all ages. With numerous engines of innovation in the city, these programmatic recommendations hold great potential for growing and expanding the tax and employment base of Fort Collins. Talent Management. The proposed talent management program will ensure a strong pipeline of human resources to support existing and future employers. Putting in place mechanisms for engaging employers will help synchronize workforce development programs and educational institutions with employers’ needs. At the same time, specific outreach and education initiatives aimed at targeted groups will provide talent and employers with more opportunities to connect. While many of these initiatives already exist, better coordination, along with targeted new programs, will create a more responsive and dynamic system. Community Culture / Quality of Place. Finally, strategic and catalytic projects have an important role to play. Retaining and selectively attracting businesses can energize the innovation economy. The City can put in place the structure and process for moving these projects forward. A collaborative approach that combines the strengths of the public sector, private enterprise, academia, and non-profits is essential. This partnership will be the key to the successful implementation not only of the proposed catalyst projects but of the City’s economic health initiatives in general. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 12 FRAMEWORK Framework The City of Fort Collins must have a clear vision for its economic health program to be effective and successful. Such clarity provides guidance for programming as well as investment decisions. It also provides a framework for measuring progress towards goals and program outcomes. This creates a feedback loop that gives City officials and staff the opportunity to evaluate initiatives and understand what is working and what is not. For these reasons, we preface the Plan with guiding principles, a vision, and objectives that serve as the foundation for the city’s economic health program. Guiding Principles for Economic Health The City of Fort Collins deliberately named its program “economic health” rather than the standard “economic development.” This is an important distinction. It implies that the goal of the City’s program is to ensure a balanced and sustainable economy. The economic health program seeks to create a vibrant, resilient economy. To create such an economy, the programs of the EHO should promote more and better economic opportunity for residents, diversify the tax base of Fort Collins, and preserve Fort Collins’ unique quality of place and culture. The City can leverage its resources and strengthen its programs by strengthening relationships with other public sector entities, academia, companies, and non-profits. Collaboration among these groups is integral to the success of any economic health program. It is a quadruple helix (public sector, private sector, academia, and non- profits). A successful partnership can optimize the use of resources, enhance opportunities for successful programs, and maximize the return on the City’s investment. SUMMARY OF ECONOMIC HEALTH FRAMEWORK Guiding Principles A Vibrant, Resilient Economy The collaboration of government, academia, companies, and non-profits is the foundation of this approach. 1. Create more and better economic opportunity for residents. 2. Diversify the tax base to help insulate Fort Collins from economic shocks. 3. Preserve Fort Collins’ unique quality of place and culture. Vision Pioneering a healthy economy through quality of place, innovation and stewardship. The vision should be the unifying thread / theme across the principle projects, collaboration, research, and City policies geared toward promoting economic health in Fort Collins. Objectives 1. Facilitate a stronger support network for existing employers, new businesses, and small business. 2. Enhance the innovation ecosystem and economy that supports companies at all stages and aligns with City goals. 3. Create a system for talent development, retention and recruitment that responds to and anticipates employers’ needs. 4. Develop community assets and infrastructure necessary to support the region’s employers and talent. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 13 FRAMEWORK Vision A vision for economic health brings continuity and cohesion to the various initiatives aimed at promoting economic health across the city. It brings economic development stakeholders together to operate under a single umbrella. It becomes the unifying theme across projects, collaboration, research, and policies geared toward promoting economic health in Fort Collins. The vision proposed in this plan is as follows: Fort Collins will pioneer a healthy economy through quality of place, innovation and stewardship. For the past six years, the City has focused efforts to promote economic health on supporting existing businesses and growing our own new businesses. The proposed vision respects this heritage and emphasizes the opportunity to leverage many current innovation initiatives related to the stewardship of resources. These initiatives include Fort Collins Zero Energy District (Fort ZED), the City’s waste diversion goals, the Mason Corridor bus rapid transit project, research conducted at CSU’s Engine and Energy Conversion Lab (EECL), and the numerous projects of the targeted industry clusters. These initiatives are developing new commercial products and services that represent economic opportunity for the City. Furthermore, these initiatives and the proposed vision reflect the culture of entrepreneurship in Fort Collins while connecting it to our long standing community value of environmental stewardship. Innovation and entrepreneurship are foundational values in the Fort Collins economic model. Leveraging our quality of place, innovative spirit, and sense of stewardship requires coordination and collaboration with the community. Success requires the participation of the City of Fort Collins as a large buyer and a distributor of public goods, the flexibility of its utilities who manage many of the resources, the expertise of CSU researchers, and the openness of residents and the private sector to test new technologies. The concept of an “ecosystem” to support the “pioneer role” will be a powerful economic engine for the local economy and a means of enhancing investment in the region. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 14 FRAMEWORK Objectives To achieve the City’s mission of creating a vibrant and resilient economy and to realize the vision of becoming a smart, sustainable system, the City must establish objectives to provide concrete direction. The four objectives identified as the pillars of this plan are: 1. Facilitate a stronger support network for existing employers, new businesses, and small business. 2. Enhance the innovation ecosystem and economy that supports companies at all stages and aligns with City goals. 3. Create a system for talent development, retention and recruitment that responds to and anticipates employers’ needs. 4. Develop community assets and infrastructure necessary to support the region’s employers and talent. The vision and objectives laid out in this plan are meant to build upon what was established in the City’s 2005 Economic Action Plan. The 2005 plan built a strong foundation for the economic health program. The 2012 Economic Health Strategic Plan (EHSP) aims to strengthen the foundation, scale up the economic health program, and increase its effectiveness. As in the 2005 plan, the concept of the innovation economy still plays a central role in the 2012 EHSP. With the research and development capabilities present in Fort Collins today, the City cannot afford to ignore this engine of economic prosperity. A stronger innovation system for commercializing technologies, bringing products to market, supporting entrepreneurship, and developing the resources and capital necessary to cultivate businesses are the essence of the 2012 EHSP. SUMMARY OF 2005 ECONOMIC ACTION PLAN Economic Vision: A healthy economy reflecting the values of our unique community in a changing world. Key Strategies:  Diversify the economy  Be proactive  Form partnerships  Balanced approach Primary Achievements:  Established a more robust economic health program within the city  Forged stronger partnerships with NCEDC and Chamber  Launched industry cluster initiative  Enhanced the City’s business incubation resources to include physical space  Developed Foothills Mall Redevelopment Plan  Updated the buildable lands inventory ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 15 STRATEGIES AND ACTIONS OBJECTIVE 1 Facilitate a stronger support network for existing employers, new businesses, and small business. Fort Collins’ existing employers, new businesses, and small businesses form the backbone of the local economy. Between 2004 and 2008, Fort Collins’ new businesses were responsible for almost 15,000 jobs, about 13% of the 2008 private sector job base. Even while businesses were closing and existing businesses were beginning to shed jobs, new businesses were generating new jobs. In the Fort Collins MSA, businesses with less than 20 employees account for about 25% of all private sector jobs, and very large businesses with more than 500 employees account for just over 40% of jobs. Existing employers (employers at least 3 years old) account for about 80% of the MSA’s private sector employment. New businesses account for about 7% of private sector employment. This data shows that business retention and expansion and economic gardening are not just viable economic development strategies, but are essential for fostering a healthy economy. This fact was recognized and emphasized in the 2005 Economic Action Plan. Consistent with the 2005 Economic Action Plan, the Economic Health Office (EHO) conducted a business retention and expansion survey in partnership with Northern Colorado Economic Development Corporation (NCEDC) and the Chamber, reaching over 100 companies in Larimer County over the course of 2010. In addition, the EHO assisted local companies looking to expand by helping them navigate the development process of the city and securing funding for eligible projects using various public finance tools. The EHO continues to be an important partner for local businesses, facilitating expansion wherever possible. The 2012 EHSP proposes to enhance and formalize aspects of the City’s business retention and expansion program and economic gardening program. PRIORITY PROJECTS 1. Major Employer Visitation Program 2. Industry Councils 3. Information Clearinghouse for Competitive Intelligence JOB CREATION BY BUSINESS TYPE Source: US Census Bureau, Statistics of US Businesses. PRIVATE EMPLOYMENT BY BUSINESS SIZE Source: US Census Bureau, Statistics of US Businesses. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 16 STRATEGIES AND ACTIONS BUSINESS RETENTION AND EXPANSION As mentioned previously, the City has focused its economic health programs on a grow-your-own strategy. While innovation and business creation are an important part of this kind of strategy, a robust business retention and expansion program is more likely to pay higher dividends per dollar invested. Existing businesses form the backbone of a thriving economy. They typically represent the best opportunity for increasing the employment and tax base of a community and the greatest economic threat if they close or relocate. The proposed strategies regarding the BRE program will strengthen the City’s ties with its most important employers while expanding the reach of the program. It will collect more information and provide resources to synthesize, summarize, and distribute that information. It will also provide a mechanism for responding to employers’ immediate needs. Strategies 1. Enhance Fort Collins’ business retention and expansion program. 1.1. Visitation. Continue to expand the visitation program to the city’s largest employers.  Establish and maintain relationships with at least the top 20 largest employers in Fort Collins, to keep a direct line open to the business community.  City officials should visit these employers annually to understand their economic health, ascertain any needs, and identify ways the City can help.  For those employers with headquarters located outside of Fort Collins, establish relationships with the headquarters by meeting face to face with executive(s) from the headquarters, either in their home office or on a trip to Fort Collins. 1.2. Business Retention / Expansion. Continue to expand the reach of the employer survey, and coordinate with NCEDC on the survey to produce county- wide results.  Database - Establish and maintain a database of existing businesses in Fort Collins using Sales and Use Tax licenses. Revise the application form to include information useful for the BRE program, such as number of employees, email address of contact, and applicable North American Industry Classification System (NAICS) code.  Customer Relationship Management - Use this database to populate a web-based system that can be shared between the City, NCEDC, and the Chamber. Examples of such systems include Synchronist OpMgr, Executive Pulse, ACT!, and SalesForce.com.  Business Attitude - Include questions on the survey for employers regarding their attitude toward the business climate, talent availability, and workforce quality in Fort Collins. Also, ask employers what their primary challenge to doing business in Fort Collins is.  Business Visitation - Conduct regular visits to at least 40 businesses each year; schedule in-person interviews to ask detailed questions about business needs. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 17 STRATEGIES AND ACTIONS  Annual Report - Compile the results of the survey and key findings from the visits into an annual report on the state of Fort Collins’ businesses and the overall business climate.  Rapid Response Team - Create formal response mechanisms, such as a rapid response team, to address the needs of any employer facing closure or relocation outside of Fort Collins. The team should be composed of representatives from the various economic development stakeholders that have the ability and authority to directly address the needs of the employer. 1.3. Industry Forums. In collaboration with community partners, establish industry councils for broad industry groups such as manufacturing, healthcare, and technology.  Hold regular meetings to provide forums for communication.  Identify cross-cutting issues that affect the sector.  Craft solutions, monitor the issues, and track progress towards addressing the issues. 1.4. Business Recognition. Establish a business appreciation program that recognizes existing businesses in our community.  Participate in the Colorado Companies to Watch program.  Develop an annual event to recognize existing businesses in the community.  Develop an on-going program to recognize companies based on their anniversary (e.g. 5, 10, 20, 30, and 50 years). 2. Create stronger connections between components of Fort Collins’ small business support system. 2.1. Institute a more coordinated small business support network by fostering more interaction between small business service providers including the Chamber, SBDC, the Poudre River Public Library Business and Non-Profit Center, Be Local Northern Colorado, Arts Incubator of the Rockies (Beet Street), and others.  Hold periodic meetings of these stakeholders to plan or share calendars of events, discuss ideas and issues, and identify ways to better serve the small business community of Fort Collins.  Identify barriers to starting a business in Fort Collins, and work with the appropriate entities to alleviate those barriers.  Coordinate a communications and outreach effort to inform the small business community of the resources available to them. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 18 STRATEGIES AND ACTIONS 2.2. Fill gaps in services to ensure that small businesses have access to the services and resources that they need.  Develop a shared information clearinghouse to provide sophisticated, high quality industry and market information to small businesses and entrepreneurs.  Strengthen the capacity of the SBDC to provide the small business community with one-on-one counseling.  Establish a more comprehensive technical assistance and training program that offers workshops and training series for basic and advanced education for small business owners. 2.3. Continue to encourage Fort Collins residents to support local business.  Focus the Shop Fort Collins First initiative on encouraging residents to make retail purchases in Fort Collins first before going elsewhere.  Continue to raise awareness of the benefits of shopping local with an on-going communications and marketing campaign.  Strengthen the City’s commitment to local business through its procurement practices and programs to help local businesses secure City contracts. SAMPLE COMPETITIVE INTELLIGENCE DATABASES Company Information / Business Intelligence D&B Million Dollar Database (www.dnbmdd.com/mddi/) Hoovers (www.hoovers.com) Demographic / Market Information Demographics Now (www.demographicsnow.com) ESRI (www.esri.com) Nielsons Claritas (www.claritas.com) New Sources and Web-based Research Tools Ebsco Business Source Premier (www.ebscohost.com) Factiva – Dow Jones (www.factiva.com) IBISWorld (www.ibisworld.com) Lexis/Nexis (www.lexisnexis.com) Morningstar (www.morningstar.com) ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 19 STRATEGIES AND ACTIONS OBJECTIVE 2 Enhance the innovation ecosystem and economy that supports companies at all stages and aligns with City goals. With Colorado State University, federal research labs, and a long list of innovative companies, Fort Collins has numerous sources of innovation, intellectual property, and inventions within its city limits. As a result, the city has one of the highest rates of innovation in the US, producing 10 patents per 10,000 residents. This fact, coupled with the recognition that entrepreneurship can be a powerful engine of economic prosperity, has led the City to identify innovation, in both the 2005 Economic Action Plan and the 2010 City Plan, as a cornerstone of the Fort Collins economy. While having these sources of intellectual capital are essential to an innovation economy, they are not sufficient. The City must also have a culture and support system that encourages this intellectual capital to be commercialized, and for that commercialization (ideally) to take place in the city. In addition, it must provide an environment that fosters business formation and expansion. Fortunately, Fort Collins has many of these essential elements. There are, however, significant gaps in its “innovation ecosystem.” The first is access to capital. In all of Colorado, 89 venture capital deals were funded in 2010, the large majority of which went to the industrial/energy sector. Of these, less than PRIORITY PROJECTS 1. Reinforce the strength of Fort Collins’ quadruple helix partnership 2. Expand RMI’s scope of services 3. Northern Colorado Angel Network 4. Raise awareness of Fort Collins as innovation hotbed TOP 20 CITIES FOR INNOVATION, 2010 Metropolitan Area Patents per 10,000 residents San Jose-Sunnyvale-Santa Clara, CA 54.84 Corvallis, OR 29.21 Rochester, MN 26.45 Burlington-South Burlington, VT 26.41 Bremerton-Silverdale, WA 24.21 Boulder, CO 20.33 Santa Cruz-Watsonville, CA 19.59 Ann Arbor, MI 16.27 Boise City-Nampa, ID 15.38 San Francisco-Oakland-Fremont, CA 14.51 Austin-Round Rock-San Marcos, TX 14.27 Poughkeepsie-Newburgh-Middletown, NY 12.31 Ithaca, NY 12.11 Rochester, NY 12.07 Seattle-Tacoma-Bellevue, WA 11.78 Raleigh-Cary, NC 11.12 Trenton-Ewing, NJ 10.89 Fort Collins-Loveland, CO 10.08 Durham-Chapel Hill, NC 9.83 San Diego-Carlsbad-San Marcos, CA 9.67 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 20 STRATEGIES AND ACTIONS The Quadruple Helix refers to the interaction of four pillars in innovation ecosystems: 1. knowledge institutions 2. enterprises 3. government, and 4. civil society. - CLiQ http://www.cliqproject.eu 10 went to Fort Collins companies. Fort Collins is not on the radar screens of most venture capital firms, even the ones in Colorado. To foster the level of economic activity around the innovation occurring in Fort Collins, companies must have better access to the capital needed to launch and grow their businesses. The second gap lies in the culture of entrepreneurship in the city. The City and the university should encourage innovators to spin-out companies around their discoveries and support entrepreneurs once the companies have been formed. While Fort Collins does have an entrepreneurial spirit, its reach could be greater, especially among CSU faculty and students. The last significant gap is in Fort Collins’ ability to retain businesses once they have matured past the start-up phase. Fort Collins has three incubator facilities to support start-up companies – the Rocky Mountain Innosphere (RMI), the Research Innovation Center (RIC), and the Engines and Energy Conversion Lab (EECL). It does not, however, have many sites to accommodate those companies ready to graduate from these incubation facilities. Many of the communities surrounding Fort Collins do – these communities include Loveland, Longmont, and Greeley – and some of those are willing to incentivize moves. This situation leaves the City at risk for subsidizing start-up businesses and then losing them (once a return on the City’s investment would be realized). Furthermore, as important as retaining companies is, retaining the entrepreneurial talent itself is more important. Strategies 1. Expand the Rocky Mountain Innosphere’s role as the nexus for innovation in both Fort Collins and the Front Range. 1.1. Foster continuous collaboration between academia, the private sector, the public sector, and non- profits to promote a more entrepreneurial culture and train entrepreneurial leadership and talent.  Engage the leadership of organizations, enterprises, and institutions that can move forward ideas and projects to catalyze innovation in Fort Collins and the greater region.  Encourage innovation and collaboration through showcase events, speaker series, and networking opportunities.  Continue to strengthen and expand RMI’s business incubation program. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 21 STRATEGIES AND ACTIONS  Promote entrepreneurial education at Poudre School District, Front Range Community College, and CSU by facilitating the creation of programs that focus on entrepreneurial training, technology commercialization, and business formation.  Actively engage CSU students in entrepreneurial activities through student internships, capstone projects, colloquia and conferences, and business plan contests that provide opportunities for interaction with local entrepreneurs and innovative companies.  Interact with other innovative regions world-wide to stay informed of cutting-edge models for innovation. 1.2. Provide support for industry cluster groups.  Differentiate between existing clusters and growth clusters: - Emerging cluster – networking events, evaluation to determine sufficient activity to warrant formal cluster organization. - Growth cluster – focus on R&D projects and collaboration, commercialization and business formation, industry partners, supply chain analysis, and strategic recruitment of key businesses and talent to enhance support system for clusters. - Existing clusters – professional associations or councils, no need to be 501(c)(3).  Incubate nascent groups through coordination of activities, outreach, and information.  Provide administrative support for cluster groups that need less than full- time support.  Serve as a resource for cluster managers on best practices and strategies for cluster development.  In partnership with the City, coordinate a challenge grants program to fund industry cluster projects. A NEW RMI The 2012 EHSP envisions an RMI that moves far beyond business incubation and support. It becomes the centerpiece of Fort Collins’ innovation economy. Its role would expand to coordinating industry cluster groups, strengthening the innovation ecosystem, and fostering a more entrepreneurial culture in the community. To fulfill the vision, RMI will need additional resources, both financial and human. Three service areas will be needed to fulfill the mission. These are: Communications & Outreach. Engaging the community to encourage a more entrepreneurial culture is essential. This entails public relations to promote innovation-oriented success in the community, communications with key audiences, and engagement with potential investors. Working with volunteers and mentors is an additional component of this task. Industry Clusters. This area will provide administrative support for the industry clusters; provide information to cluster managers, counsel small businesses in cluster areas, and provide overall management of the cluster initiative. Business Assistance and Support. This area will continue to provide technical assistance to entrepreneurs and also help businesses secure capital. It will work closely with CSU Ventures as well as interested students and faculty, with the goal of commercializing technologies and growing businesses. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 22 STRATEGIES AND ACTIONS  For select industries, contract or hire industry experts to provide technical know-how to support commercialization, business formation, and business growth.  Periodically review industry clusters programs and economic data to identify emerging clusters that need incubation support and to determine if existing clusters have reached critical mass and no longer need incubation support. 1.3. Continue to provide incubation services to start-ups with a renewed focus on successful funding and exit.  Continue to provide networking and educational opportunities for entrepreneurs through events such as Innovation After-Hours, and Social and Advisory Group for Entrepreneurs (SAGE).  Raise the profile of RMI clients through a stringent application process and initial screening.  Build a strong network of seasoned entrepreneurs, business service providers, financing experts, and technical experts that are willing to volunteer time to work with the most promising ventures.  Create a relationship map that provides entrepreneurs with access to Fort Collin’s network of business services, technical know-how, capital sources, and other resources.  Leverage existing training and technical assistance providers to educate entrepreneurs in the basics of business (see Objective One, Strategy 3- 3.2). 1.4. Strengthen ties to innovation-driven communities.  Consider outside members to serve on local boards.  Actively develop entrepreneurial linkages with other incubators, institutes, and businesses. CREATING AN ENTREPRENEURIAL CULTURE 1. Involve entrepreneurs in leadership and strategy development, as well as policy development. 2. Engage students through leadership training, entrepreneurship education, and incorporating elements of entrepreneurship in general curriculum. 3. Celebrate successes to reinforce cultural change, build momentum for entrepreneurship, and encourage innovation. - Deb Markley, RUPRI. CASE STUDY: CENTRAL TEXAS ANGEL NETWORK The Central Texas Angel Network (CTAN) was founded in 2006 under the leadership of local entrepreneur Jamie Rhodes with support from the Greater Austin Chamber of Commerce. CTAN provides funding from $200,000 to $2 million through its network of SEC accredited investors. Each of its investors pay a membership fee to encourage only serious investors to join. The executive director of CTAN carefully screens deals to ensure that high quality, investment-ready deals are presented to the network. In addition, CTAN has created a larger network of other angel investment networks in the state of Texas that it can syndicate its deals to and vice versa. For more information, visit: www.centraltexasangelnetwork.com ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 23 STRATEGIES AND ACTIONS  Organize visitations and exchanges to peer communities to share best practices and lessons learned. 2. Retain, develop, and recruit entrepreneurs and cutting-edge companies that align with Fort Collins’ culture and values. 2.1. Foster a nurturing entrepreneurial culture that anchors talent and companies in Fort Collins.  Support RMI in its activities to promote an entrepreneurial culture (See Objective 2, Strategy 1-1.1).  Incorporate entrepreneurs in the Economic Advisory Commission and in the Economic Health Stakeholder Group.  Use local media outlets to celebrate entrepreneurial ventures and stories.  Showcase local innovations and innovators in community centers including Old Town, the Fort Collins Museum of Discovery, and Foothills Mall. 2.2. Build a robust capital network as part of NoCo Capital by formalizing access to the capital already present in Fort Collins and building better relationships with the venture community outside of Fort Collins.  Establish a pre-seed fund through monetary and in-kind donations.  Formalize an angel network in Northern Colorado, and form a syndication network with other regional angel networks to bolster deal flow.  Actively market qualified Fort Collins-based start-ups to non-local investors to get Fort Collins on their radar. Particularly, focus on Denver and Boulder investors.  Encourage and support local entrepreneurs in tapping into federal funding sources by applying for Small Business Innovation Research (SBIR) grants, Small Business Technology Transfer program (STTR), and other programs available to entrepreneurs.  Expand the revolving loan fund seeded by the Section 108 HUD grant by seeking funding from organizations such as the US Economic Development Agency (EDA). Consider contracting with a Community Development Financial Institution to manage the fund. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS Community Development Financial Institutions (CDFIs) provide access to credit to underserved communities. Many CDFIs focus on small business lending and venture capital investing in low-income and minority businesses as well as start-ups. CDFIs create funds through grants, donations, and low-cost loans from a variety of sources. The two largest sources are the US Treasury’s CDFI Fund and commercial banks who lend to CDFIs to receive Community Reinvestment Act (CRA) credit. The EDA also provides funding to CDFIs. Starbucks recently announced its Jobs for USA program, which it will donate to CDFIs to be loaned out. Venture-oriented CDFIs such as New Mexico Community Capital and Pacific Community Ventures invest in businesses with high growth potential that will provide market rates of returns and will improving the quality of life in underserved areas. Such models could be excellent mechanisms for tapping into community capital and expanding entrepreneurs’ access to credit. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 24 STRATEGIES AND ACTIONS 2.3. Work with NCEDC and/or other community partners to recruit those companies vital to the success of Fort Collins’ industry cluster initiatives.  Collaborate with the industry cluster groups to identify important components of their industries missing in Fort Collins.  Target specific companies to recruit that fill supply chain gaps and niches that reinforce the target industry clusters including Clean Energy, Water Innovation, Bioscience, Technology, and Uniquely Fort Collins.  Be responsive to other prospects that mesh well with the culture and values of Fort Collins. 2.4. Raise awareness of Fort Collins as a hotbed of innovation to attract or engage both investors and entrepreneurial talent.  Leverage CSU alumni network to communicate with alumni who are entrepreneurs, looking to invest in Fort Collins, or looking to return to Fort Collins.  Collaborate more closely with Metro Denver to raise awareness of the activities occurring in Fort Collins.  Partner with entrepreneurship support organizations in the Greater Denver region to market opportunities in Fort Collins to a broader Colorado technology- executive talent pool.  Market what Fort Collins and CSU are doing regarding technology start-ups to the specialists and executives already in Fort Collins, especially those at large firms. 2.5. Expand Fort Collins’ capacity to support technology commercialization and product development.  Work with local manufacturers and companies to create an asset map of the resources and services available in the region to support product development and early-stage manufacturing.  Identify areas of the product lifecycle that Fort Collins does not currently (but should) support with local services.  Develop projects and strategies to address the above gaps. 2.6. Ensure that companies have the appropriate space to grow in Fort Collins’ city limits (see Objective Four, Strategy 2) and that the appropriate talent (See Objective 3, Strategy 3). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 25 STRATEGIES AND ACTIONS OBJECTIVE 3 Create a system for talent development, retention and recruitment that responds to and anticipates employers’ needs. Fort Collins is fortunate to have a strong labor pool and a formidable talent magnet in Colorado State University (CSU). The population is young and well-educated, and is naturally attracted to Fort Collins. With almost 30,000 students and 1,500 faculty, CSU creates a constant churn of young adults and university-related talent. Anecdotally, we heard that people so want to live in Fort Collins that they are willing to move without a job and accept employment for positions for which they are over-qualified. At first glance, it would seem as though under-employment is the only concern regarding talent. Upon further inspection, however, major employers voiced a number of additional concerns. Issues such as skill shortages, misconceptions about manufacturing jobs, minority recruitment, and work-readiness of high school students are issues worth addressing before they become significant obstacles for businesses operating in Fort Collins. Fort Collins’ employers, like many employers nationwide, face skill shortages in technical occupations such as engineers and machinists, as well as less technical occupations such as production and team assemblers. These skill shortages affect most manufacturers, whether they are semiconductor manufacturers or animal feed producers, and are worrisome in the shadow of an aging workforce. When baby boomers retire, the skills shortage will be compounded, and programs to train workers to fill these kinds of positions will have difficulty attracting students. The root of students’ lack of interest in manufacturing jobs is often a misconception of what manufacturing jobs entail. This is a national challenge, but it can be addressed locally. PRIORITY PROJECTS 1. Workforce Development Program 2. Involvement of Colleges of Business & Engineering 3. Conference Strategy “The image of Manufacturing as dumb, dirty, dangerous and disappearing is far from accurate. Today, Manufacturing is smart, safe, sustainable, and surging.” - The Council on Competitiveness, Make: An American Manufacturing Movement ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 26 STRATEGIES AND ACTIONS While recruiting talent to Fort Collins is generally not a challenge, it is, however, very difficult to attract minorities and even more difficult to retain them. This matters to those companies who have stringent diversity requirements to meet. In addition, some employers also commented that the work readiness of high school students is not sufficient. These issues do not currently have a material impact on employers’ abilities to do business at this time, but these are important trends to understand and monitor. These types of issues can be detected and addressed early-on by developing a mechanism for greater interaction between employers, education, workforce, and economic development. In addition to challenges voiced by area employers, the available jobs do not necessarily meet the skill level of the residents. Fort Collins boasts a young, highly-educated workforce that is largely under-employed. Forty-one percent of the population in the MSA has earned a bachelor degree or higher, yet only 25% of the jobs require that level of education. In fact, 65% of the jobs in the MSA require only on-the-job training or previous experience. Many households are in the position where one person finds gainful employment and the other is unable to do the same. The latter person therefore, chooses a job for which they are over- qualified or is required to look beyond city limits and commute for employment. While this is a trade-off that many are willing to make for the sake of living in Fort Collins, the result is an untapped well of skill capacity that, if utilized, allows the community to prosper economically without having to grow in terms of population. One contributing factor to the underemployment challenge is that the Fort Collins’ labor market does not always offer open access. According to focus groups and interviews, young professionals in Fort Collins noted that the community “feels small once you’re in”, but they also commented on the challenges of “breaking in” professionally. Many young professionals who found jobs quickly in the community were able to do so by virtue of personal and family networks, and many of the positions were either created for them or were not advertised to the public at-large. The risk of a tight-knit social network as a driver for employment is that newcomers could be discouraged by their inability to break into existing professional networks. Creating a platform for newcomers, recent graduates, under-employed workers, and relocated professionals to become engaged with the community is an important element of talent management. It gives younger people – and people moving to the area in general – an opportunity to establish a social network in the community and improve their career opportunities. In addition, such a platform can provide Fort Collins’ employers with better access to local talent and may reduce the need to recruit talent from outside the community. Ultimately, the success of an innovation economy lies in the strength of its talent pipeline. A coordinated effort to fill out the talent pipeline will greatly enhance the region’s innovation ecosystem and entrepreneurial culture. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 27 STRATEGIES AND ACTIONS Strategies: 1. Create and staff a workforce development program. 1.1. Work more closely with Larimer County Workforce Center and Workforce Investment Board (WIB).  Encourage the WIB to act as the conduit between employers and area educational institutions to identify and bridge skills gaps in the existing workforce.  Incorporate Fort Collins’ target industries into the Workforce Center’s set of target industries to bring about closer coordination of training programs and emerging industries.  Promote the Workforce Center’s services to businesses and talent across Fort Collins.  Incorporate workforce development into economic health programming across the city to promote cross-pollination and collaboration. 1.2. Collect, analyze, and report workforce data to enhance the community’s understanding of its labor force, market, and industry issues.  Use the existing BRE survey to collect current and localized information on Fort Collins’ labor force and labor shed.  On a quarterly basis, publish a Fort Collins and Larimer County workforce report that provides an overview of pertinent labor market information and highlights important accomplishments, programs, and issues in workforce development.  Provide updated labor market information on a quarterly basis at the county and city level that is accessible to the public. 1.3. Engage employers through meaningful participation and support in programs and initiatives aimed at resolving their specific workforce issues and improving workforce training, including K-12 education. CASE STUDY: NORTHERN KENTUCKY INDUSTRIAL PARK INDUSTRY PARTNERSHIP A group of about 50 manufacturers in Northern Kentucky have come together to tackle the perception problem manufacturers face. Though manufacturers have independently undertaken initiatives to influence students’ perceptions, they believe a collective approach could be more effective. The group applied for a $65,000 grant from the Kentucky Office of Employment and Training to help implement a plan to address the shortage of qualified workers in manufacturing occupations. The first step of the plan is to survey all the existing manufacturers in the region to determine what the job needs are and the core competencies necessary to fill those positions. The next step will be to determine the various reasons young people are not considering jobs in manufacturing and to dispel misconceptions. The ultimate goal of the program is to develop a talent pipeline that begins in the high schools, goes through the colleges, and continues into the companies. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 28 STRATEGIES AND ACTIONS  Create a sub-committee of the WIB comprised of employers, education institutions, workforce development, and the City to discuss on-going programs and initiatives as well as cross-cutting issues.  Design programs to address the primary issues raised by the sub- committee.  Coordinate with industry councils to understand and incorporate their workforce-related issues (see Objective One, Strategy 1-1.3). 1.4. Educate local youth on the wide range of career opportunities available to them locally, with a focus on changing the perception of manufacturing and heavy industry jobs.  Hold annual career days at local high schools that expose students to different professions through speakers, videos, factory tours, and shadowing opportunities.  Organize factory tours that showcase the advanced technologies used in manufacturing processes and the skills needed to work in that environment.  Create an apprenticeship or internship program that would provide hands-on learning experiences for high school students.  Coordinate with Front Range Community College (FRCC) to promote opportunities available to high school students to obtain certifications and enhance their work readiness upon graduation. 2. Promote opportunities for leadership training, professional development, and networking. 2.1. Facilitate greater levels of civic engagement.  Continue City Works, Leadership Fort Collins, and Envision: Young Professionals as a means of training future leaders, educating them about opportunities to participate in the community, and engaging CASE STUDY: COLUMBUS, OHIO TALENT INITIATIVES The Columbus Region has a median age of 34.7 and is home to approximately 30 colleges and universities with a total enrollment of more than 120,000 students and 20,000+ annual graduates. In 2006, the Columbus Chamber, in partnership with public and private organizations, launched a three-pronged initiative to engage and retain this significant local talent base. Columbusinternships.com The Columbus Chamber created a website where college students can obtain meaningful internships with local employers. Young Professional Connectivity Each week the Columbus Chamber collects events and activities from Young Professionals' Organizations, corporations, philanthropic organizations, and community councils to populate an email newsletter. In addition to the newsletter, the Chamber staffs a young professionals manager position and its website lists approximately 60 different Columbus organizations for young professionals. Liveworkplaycolumbus.com Working with the human resource and recruitment community, the Columbus area Chamber has developed a comprehensive website to assist Columbus region employers in "selling" the region to prospective employees. For more information, visit www.columbus.org/business- resources/workforce-development/ ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 29 STRATEGIES AND ACTIONS them. Coordinate the programs to better define their distinct purposes and/or audiences to create a more robust leadership development initiative.  Encourage emerging leaders to apply for seats on city boards and commissions by hosting workshops on what the various boards and commissions do and providing information on which seats are available.  Work with local organizations, businesses, and institutions of higher education to develop a volunteer clearinghouse to connect emerging leaders with other opportunities to get involved with the community.  Create an annual awards program to honor individuals making a difference in the community. 2.2. Provide professional development opportunities.  In partnership with the WIB, establish an internship and apprenticeship program that would match interested high school and college students with local employers.  Market CSU and FRCC continuing education programs to young professionals through relevant organizations.  Establish a mentorship program in partnership with a community partner. 2.3. Enhance access to and awareness of local employment opportunities.  Launch an on-line, Fort Collins-centric job and gig board to increase connectivity between employers and talent. Link to the board from other Fort Collins websites including the City, Chamber, Convention & Visitors Bureau, RMI, CSU Alumni INDEED.COM: OPTIONS FOR JOB & GIG BOARD Fort Collins can promote local employment opportunities by integrating job posting and job search tools from Indeed.com into existing websites. This is a low-hassle way for the Chamber, City, CVB, and other organizations to engage talent by creating a portal for employers to post jobs and job-seekers to access those listings. In addition to adding valuable content across multiple platforms, each organization can also generate revenue by becoming an access point for job postings. Instant Job SiteTM. The Indeed.com Instant Job Site is a way to add a full job search experience to a website, with job listings powered by Indeed.com. Employers pay a fee to post jobs, and searching for jobs is free to users. JobrollTM. The Jobroll can be added to a site to provide continuously updated job links. The pay-per-click job links can be targeted to the interests and locations of the audience. Job Search Boxes and Text Links. Indeed.com job search boxes can be embedded in the website. THE CSU ALUMNI NETWORK: BY THE NUMBERS Approximately 30,000 students are currently enrolled at CSU, including resident and non-resident instruction students. The university has approximately 1,500 faculty. CSU received more than $300 million in sponsored research in 2010, ranking the university in the top 3 percent of institutions without a medical school for research expenditures. In addition to the significant assets flowing into the community on an annual basis, CSU has 184,586 living alumni with 27 geographic alumni groups (4 in Colorado and 23 out of state) representing 17 states and 16 common interest groups. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 30 STRATEGIES AND ACTIONS Network, and CSU Career Center. Indeed.com provides a low-cost option for accomplishing this.  Encourage employers to post job and internship opportunities on the Fort Collins job and gig board.  Create opportunities for newcomers and job-seekers to network with local entrepreneurs and industry leaders in Fort Collins area businesses.  Provide educational opportunities and training workshops to support the 1099 workforce (independent contractors), which has emerged as a rapidly growing sector resulting from the economic downturn. Such opportunities and training should be targeted both to workers and the employers contracting with these workers. 3. Strengthen the innovation and entrepreneurial talent pipeline. 3.1. Engage the CSU Alumni Network as a key source of talent.  Partner with the CSU Alumni Association to communicate to alumni about the innovation and related events happening in Fort Collins.  Make the Fort Collins job and gig board available to CSU Alumni (See Objective 3, Strategy 2-2.3).  Host alumni reception(s) at RMI with regional alumni groups to showcase what Fort Collins is doing.  Sponsor a CSU Alumni entrepreneurs network to build a strong connection between RMI and CSU Alumni entrepreneurs, even if they are not currently located in Fort Collins.  Reach out to successful entrepreneurs and executives who are CSU Alumni, and invite them to join RMI’s initiatives. CASE STUDY: ENTREPRENEURIAL ENGAGEMENT AT THE UNIVERSITY OF TEXAS The University of Texas at Austin (UT) has embraced innovation as a core component of its culture. Even its branding message reflects this: “What Starts Here Changes the World”. To capitalize on this spirit of innovation and promote economic progress, UT has strengthened its programs to engage student and faculty entrepreneurs and has served as a resources for entrepreneurs in the state. A number of cross- disciplinary programs and events exist to achieve this: Texas Venture Labs: a campus-wide initiative to accelerate start-ups from UT and the local community as well as create an experience that transforms graduate students into future entrepreneurs and business leaders. 3 Day Start Up: an entrepreneurship education program designed for university students with an emphasis on learning by doing. The idea is simple: start tech companies over the course of three days. Idea to Product Competition: early stage technology commercialization plan competitions aimed at educating and developing the next generation of technology entrepreneurs. Entrepreneurs in Residence: seasoned entrepreneurs who serve as mentors for students interested in starting businesses. The Office of Technology Commercialization also employs individuals who are charged with turning the University’s research into start-ups. Austin Technology Incubator: a program to provide a “teaching laboratory” in applied entrepreneurship for UT-Austin students and to promote economic development in Central Texas through entrepreneurial wealth and job creation. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 31 STRATEGIES AND ACTIONS 3.2. Increase the involvement of CSU, in particular the Colleges of Business and Engineering, as sources of entrepreneurial talent.  Strengthen the existing entrepreneurship program in the College of Business, and extend its reach across campus.  Introduce intensive business formation courses and events such as Venture Labs and 3-Day Start-Up to generate interest in and momentum for student-led entrepreneurial ventures.  Create a student internship program at RMI to prepare students for employment in start-up and young companies.  Continue to explore ways of engaging faculty in technology commercialization and business formation through the revision of tenure policies to factor in such activities, by educating faculty about commercialization, and by fostering a more entrepreneurial culture at CSU in general.  Coordinate continuing education programs in partnership with RMI and the SBDC to provide a full range of education opportunities to entrepreneurs. 3.3. Leverage the knowledge base of seasoned entrepreneurs in Fort Collins.  Continue to recruit volunteer advisors to participate in RMI.  Create networking opportunities for new entrepreneurs to interact with seasoned entrepreneurs.  Host a speaker series that features seasoned entrepreneurs talking about lessons learned and topics of interest. 4. Use tourism and visitation as a talent and business outreach strategy to support industry cluster development. 4.1. Update the Convention and Visitors Bureau (CVB) website to also serve as portal for talent and businesses interested in relocating to Fort Collins.  For individuals looking to relocate to Fort Collins, include links to relocation information on the Chamber website and to job searching tools.  For entrepreneurs, include links to RMI and www.FortCollinsInnovation.com. CASE STUDY: SILICON VALLEY COMES TO THE UK The Silicon Valley Comes to the UK program is an invitation-only series of events that brings together leading investors, iconic serial entrepreneurs, ambitious students, and successful angels from the UK with leading Silicon Valley serial entrepreneurs and investors to discuss, debate, create, and fund today's most disruptive internet and green technologies that will change our world in the years to come. The objective is to inspire students and alumni to consider starting or joining an entrepreneurial business at some point after graduation and to foster relationships between the leading entrepreneurs, angels, and investors from Silicon Valley and Europe. At the 2011 forum, the movers and shakers from Silicon Valley shared their views about the new and innovative business models they see as the most disruptive across the Gaming and the Consumer Internet sectors. For more information, visit www.svc2uk.com/ ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 32 STRATEGIES AND ACTIONS  For businesses, include links to Economic Health Office and NCEDC. 4.2. Coordinate a conference strategy that would bring key talent and businesses to Fort Collins.  Partner with industry cluster managers, the CVB and CSU Conference Services, to identify conferences and events, as well as groups of professionals and businesses that would help strengthen Fort Collins’ industry clusters.  Recruit conferences to Fort Collins, or plan conferences or symposia that would appeal to targeted groups of professionals and businesses, and use these conferences as opportunities to showcase Fort Collins to these targeted audiences. 4.3. Support the development of a blue-ribbon hotel and conference center in or adjacent to downtown (see Objective 4, Strategy 1). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 33 STRATEGIES AND ACTIONS OBJECTIVE 4 Develop community assets and infrastructure necessary to support the region’s employers and talent. The City of Fort Collins ranks at the top of many lists, including: “Most Economically Vibrant College Towns;” “Best Bicycle Cities;” “'Smarter Cities' for Energy;” and “Best Places to Live.” The city enjoys a scenic setting in the foothills of the Rocky Mountains, as well as a moderate climate that attracts avid athletes, families, entrepreneurs, students, and retirees. The community also boasts amenities such as award-winning schools, a large research university, and a thriving arts and music scene. These community assets and amenities are invaluable in creating the quality of place that supports a vibrant economy. The City of Fort Collins is committed to maintaining and improving it community assets and amenities in recognition of their importance to economic health. The City’s investment in the Mason Corridor Bus Rapid Transit (BRT) system and the LEED Platinum Fort Collins Museum of Discovery are two examples of this commitment. In addition, recent capital improvement initiatives have enabled the City to build Gateway Park, Edora Skate Park, the new City office building at 215 N. Mason, the Downtown Transit Center, and the Civic Center Parking Structure. Funds were also used for numerous street improvements, to improve Edora Pool and Ice Center, and to construct a new Horticulture Center. The City has also identified areas for infill and redevelopment PRIORITY PROJECTS 1. Hotel Conference Center 2. Business Park Feasibility 3. Revitalization of Foothills Mall SELECT FORT COLLINS HONORS & AWARDS One of America's 20 Most Economically Vibrant College Towns: TheAtlanticCities.com - September 2011 Ranked 5th Best Places for Business and Careers: Forbes - June 2011 One of the Top 10 Cities Adopting Smart Grid Technology: U.S. News and World Report - May 2011 Top Colorado City for Job Growth, Fort Collins-Loveland: 2011 Best Cities for Job Growth, newgeography.com - May 2011 Named 5th Most Educated City in the Country: Portfolio.com - December 2010 One the Top 25 Best Places to Retire: CNNMoney.com - September 2010 One of the Top 10 Best College Towns: Small-Sized Cities Category, USA Today - September 2010 One of the Top Six 'Smarter Cities' for Energy: NRDC - August 2010 6th Best Place to Live in the Nation: Money Magazine - July 2010 Ranked 4th Best Places for Business and Careers: Forbes - April 2010 ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 34 STRATEGIES AND ACTIONS and continues to enhance the physical and natural environment of Fort Collins. This continuous investment in community assets and amenities has paid high dividends. While amenities attract talented workers, private employers locate and expand where they can find the best talent. However, expanding in and relocating to Fort Collins can be difficult, both because of the scarcity of larger commercial and industrial space and because of the perceived nature of the development approval process. This poses a threat to the tax base and ultimately to fiscal sustainability. Investment in a “grow-your-own” strategy for economic development will only be rewarded if local employers possess both the capacity and desire to grow within the city limits. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 35 STRATEGIES AND ACTIONS Strategies: 1. Create a new model for a conference center in Fort Collins’ historic core. 1.1. Identify uses for the space that will foster innovation, collaboration, networking, and socializing.  Work with CSU and the CVB to identify programming priorities and basic requirements for the conference center.  Collaborate with existing public-private entities to brainstorm unique uses for the space that would highlight the character of the community.  Identify additional uses that could offer additional revenue streams to support the space (i.e., weddings, family reunions, corporate retreats, etc.) 2. Ensure that companies in Fort Collins have options for expansion and relocation within the city limits. 2.1. Conduct a needs assessment to determine types of space that will most likely be in demand.  Collaborate with CSU, RMI, and the regional development community to understand what types of commercial and industrial space is available, what is currently in demand, and what the most promising companies are likely to need.  Work with the industry cluster managers to identify typical space requirements needed to support industry clusters.  Survey clients of RMI, the CSU-based Engines and Energy Conversion Lab (EECL), and the CSU-based Research Innovation Center (RIC) to understand what their future needs will likely be. CONFERENCE CENTER STRATEGY The conference center should be envisioned as a departure from traditional conference and convention centers. It should reflect the spirit of entrepreneurship, innovation, and collaboration in the community and should function as a major center of activity. This would free-up academic space at the college and strengthen physical linkages between the campus area and nearby business district. Such a facility would support the connectivity between CSU and the Community. In addition to the direct benefits typically associated with a convention center, such as increased tax revenues and employment, a conference center can also have significant indirect advantages. It can help establish a community identity, spur redevelopment, and provide an amenity to local citizens. Fort Collins should create a structure that reflects the goals of the community and the range of uses the stakeholders envision for the space. Replicating existing structures adds only marginal value; envisioning and executing on a new model for meeting spaces and community engagement will set the city apart. Conference center planners have begun embracing new concepts of “meeting architecture.” The result has been facilities that feature uniquely designed settings, technical sophistication, and specialized services geared toward gatherings of all types. In addition to hosting conferences, for example, the space could bring the city’s education providers together in one space. CSU could host executive education programs and academic conferences with private sector partners. RMI could provide some of its services to entrepreneurs in the same venue. The goal should be to go beyond hosting conferences, and to instead create a physical space where businesses, entrepreneurs, students, and visitors can convene in Fort Collins’ historic core. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 36 STRATEGIES AND ACTIONS  Aggregate and present this information to the City Council, community leadership, and local land owners and developers to inform them of the likely short-term and long-term needs of Fort Collins’ businesses. 2.2. Work with the broker community to create and maintain an inventory of available space in Fort Collins that meets the above criteria.  Partner with Harmony Technology Park to market their available space to companies looking to expand or relocate in Fort Collins.  Assist the brokers in identifying promising tenants within Fort Collins industry clusters.  Share information with prospects and business assistance clients on what sites are available. 2.3. If available space is not adequate to meet long-term goals for business growth and economic diversification, evaluate feasibility of establishing a new technology park or parks in City’s Growth Management Area (GMA).  Potential sites for parks include an Innovation Park that would connect the EECL and RMI and a Prospect Technology Park on the 100 acres of university-owned land with I-25 frontage.  Preserve potential sites as future employment centers through zoning and land-use policies and possibly land banking. 3. Focus on the community by encouraging the development of vibrant business districts, commercial nodes, and commercial corridors through infill and redevelopment projects. 3.1. Support on-going initiatives in targeted infill and redevelopment areas such as the Downtown Development District, Mason Corridor, North College Corridor, Midtown Corridor, and Harmony Road Corridor.  Continue outreach to the developer and broker communities to communicate the City’s vision for those areas and how the City can participate. CASE STUDY: SANDYWOOD FARMS, TIVERTON, RI The residential area incorporates aspects of New Urbanism and traditional neighborhoods, such as walkability and front-porch culture. The home designs incorporate many sustainable materials as well as energy efficient and energy saving features. A wind turbine provides 85 percent of the homes’ power. The development also features an agricultural preserve that remains a working farm, a land trust that preserves open space, and a community garden to allow the community to collectively grow their own produce. A community hall and other community space feature theater performances, potlucks, cooking classes, and other group events. For more information, visit http://sandywoodsfarm.org/home.html Outside of Tiverton, Rhode Island is a 170-acre community designed to link art, agriculture, community, and conservation. The development provides 50 affordable rental units and 22 single-family homesites. Half of the rental units are reserved for working artists, and the other half are leased via a traditional needs-based selection process. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 37 STRATEGIES AND ACTIONS  Continue to assess the City’s regulatory framework to ensure it is supportive of desired development.  Continue to participate in public-private partnerships that facilitate significant infrastructure improvements and quality redevelopment projects.  Encourage the expansion or relocation of business in targeted development areas to stimulate and leverage commercial activity.  Create a Business Improvement District (BID) for Midtown and the Mason Corridor Commercial District.  Use overlay districts as potential tools to encourage the implementation of targeted area visions. 3.2. Focus on strategic projects that inspire private sector response and act as catalysts for strengthening the local community. These areas of opportunity might be: 1. Lincoln Triangle Area as a model of sustainability. 2. Fort Zed Boundary as an innovative energy project. 3. UniverCity Connections to enhance and improve the connection between the city, the river and CSU. 4. Mason Corridor with the Bus Rapid Transit system coming online in 2014. 5. River District to enhance the city’s connection between the river, Old Town, and North College. 6. Mountain Vista Area as an additional employment center. 7. Midtown Redevelopment. 8. The Interstate 25 Gateways. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 38 STRATEGIES AND ACTIONS  Ensure that land use policies encourage high density uses and foster high-quality development.  Hold workshops with land owners and developers in each opportunity area to craft a common vision for the area.  Translate the vision into a viable blueprint that establishes a plan for achieving the vision.  Strategically identify anchors for each opportunity area that can bring in the type of traffic and uses needed to catalyze development in the rest of the opportunity area. 3.3. Position Fort Collins as the regional retail destination.  Continue the refinement of a retail strategy.  Prioritize redevelopment opportunities for retail in targeted investment zones.  Continue to provide assistance to developers navigating the development process and financial support using creative financing mechanisms. 4. Continue to improve the business climate as a means of retaining companies and fostering their expansion. 4.1. Ensure that the development and business assistance process is predictable and transparent.  Develop a clear incentives policy that outlines the use of the City’s economic health tool box.  Work with representatives of the local business and development community to gather input on the development review process, and work closely with the City Council to continue to help make the development approval process as predictable and transparent as possible.  Continue to benchmark the local permitting process against similar processes in neighboring communities.  Continue to shepherd companies through the development process as needed.  Publicize the existing outline of the development process to brokers, developers, and the community-at-large, and enhance the outline where necessary.  Reduce the barriers to development and redevelopment, especially in infill areas. 4.2. Advocate for economic health interests in government policies and programs that impact the ECONOMIC HEALTH TOOLBOX Special Financing Districts Tax Increment Financing General Improvement District Special Improvement District Metropolitan Improvement District Business Improvement District Public Improvement Fee Low-Interest Capital Private Activity Bond Section 108 Loan Guarantee Tax Rebates Use Tax Rebate Personal Property Tax Rebate For Low to Moderate Income Areas / Individuals New Market Tax Credit Affordable Housing Fund HOME Investment Partnership Grant Community Development Block Grants Section 108 Loan Guarantee Source: City of Fort Collins. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 39 STRATEGIES AND ACTIONS business climate.  Communicate with elected officials, and provide updates on the Strategic Plan’s implementation.  Seek opportunities to integrate economic health objectives into City policies and programs.  Create a culture of empowerment that adapts rapidly and cost efficiently in response to the changes in the business environment. 5. Valuing the experience and education of the youngest citizens, and continue to explore options for improving the delivery of high quality early childhood education to support working families. 5.1. Work with the Fort Collins small business support network to tailor programs for childcare providers.  Partner with the appropriate agencies, and prepare information in the form of a planning guide to educate interested parties on how to start a child care facility, applicable regulatory requirements, funding opportunities, and links to other child care resources.  Introduce training programs and technical support services specifically for childcare providers and family child care homes.  Incentivize inclusion of childcare facilities in affordable housing, transit- oriented developments, and employment centers. 5.2. Make funding available to support childcare-oriented businesses.  Consider childcare businesses as allowable applicant for Section 108 Loan Program.  Allow funds in TIF districts to be used for the development of childcare facilities.  Pursue state and federal funding sources such as the Community Development Block Grant (CDBG) to provide capital and leverage private investment to support the expansion and development of childcare facilities. 6. Continue to foster arts and culture as an economic driver. 6.1. Increase and improve opportunities for learning and expanding creative industries in Fort Collins.  Encourage partnerships between educational, cultural, and business institutions that create opportunities. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 40 STRATEGIES AND ACTIONS  Expand opportunities for arts education programming and participation for youth and adults.  Support the Arts Incubator of the Rockies as a means of strengthening creative enterprises. 6.2. Promote visibility of the Arts and Culture.  Showcase the creative industries of Fort Collins through events such as Bohemian Nights and New West Fest.  Provide opportunities for local artists to display their works in public spaces across the City.  Seek opportunities for Fort Collins artists to reach national and even international audiences.  Continue and support active arts and entertainment such as Streetmosphere and Beet Street. 6.3. Leverage the Arts Incubator of the Rockies (AIR) to enhance the creative sector and foster a more creative business climate.  Encourage AIR to develop a “Big Thinking” facility that provides free form space for collaborative interdisciplinary teams to meet and brainstorm.  Assist AIR in developing a curriculum designed to encourage non-creative industry to leverage the benefits of the creative thought process. 6.4. Expand the role of Art in Public Places.  Encourage the use of art as a way-finding tool.  Develop a mechanism for making the program available as a service to private development. THE ARTS INCUBATOR OF THE ROCKIES (AIR) AIR will provide education, resources, and support to increase the economic viability of the region’s artist and arts organization. It will also offer administrative services, professional resources, and gallery and performance spaces to students and professionals to assist them in launching and sustaining their careers in creative industries. AIR plans to serve communities throughout the Intermountain West through new technologies and distance learning opportunities. AIR will be housed in the Carnegie Library Building in Downtown Fort Collins. It is a partnership between Beet Street, the City of Fort Collins Cultural Services Department, and the Leadership, Entrepreneurship, Advocacy, and Performance Institute for the Arts (LEAP) at CSU. For more information, http://airartsincubator.org/ ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 41 IMPLEMENTATION IMPLEMENTATION The 2012 Economic Health Strategic Plan (EHSP) is an ambitious plan that builds upon both the 2005 Economic Action Plan and the Plan Fort Collins comprehensive plan. Though ambitious, the objectives and strategies laid out in this plan are realistic and manageable. In keeping with the broader goals of the community, they also have the ability to be transformative. For this to occur, the City must embrace an organizational structure that will strengthen its capacity for economic initiatives, track its progress towards implementation, and monitor the outputs and outcomes of its strategies. Organizational Structure The Economic Health Office (EHO), charged with managing economic health activities, includes only the economic advisor, communications manager, and the redevelopment program administrator. This is a lean staffing structure. In comparison, Fort Collins’ peer communities have a staff of 6 to 10 employees devoted to these programs. That said, the EHO has done a good job under the constraints, but has little extra capacity to take on new initiatives. In order to implement the 2012 EHSP, the City should consider choosing an option for implementing the plan. The three options are:  Partially implement the plan with existing resources.  Expand the EHO to build the capacity to implement the plan internally.  Enhance relationships with community service providers to leverage the city’s resources for plan implementation. TIP and staff recommend pursuing the third option. Fort Collins is fortunate to have multiple service providers that can take the lead on many of the initiatives with the City, playing a more “behind the scenes” role. There are approximately 15 full-time employees working in organizations related to economic development, including NCEDC, the Chamber, RMI, the WIB, the CVB, the Poudre River Public Library, and the SBDC. By forging stronger, formal partnerships with these organizations, the City of Fort Collins can leverage its resources and free City staff to focus on more strategic initiatives. This move would also have the added benefit of strengthening the overall economic development structure in Fort Collins by unifying the efforts under a single vision and set of objectives. This, in turn, will expand the capacity of the City to move its economic health program beyond the basics of business retention, expansion, creation, and attraction. The City of Fort Collins can better leverage its resources by formalizing partnerships with Memoranda of Understanding and in some cases contracting with existing organizations to provide economic health services. Many of the existing service providers have additional funding sources to supplement City funding. They also already have or are in a position to build the general expertise needed to create more robust basic programs. Under this new model, the City will need to clearly define its role and the role of its service providers in administering the economic health program. Our recommendations for the role of the City are on the following pages. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 42 IMPLEMENTATION The Role of the City of Fort Collins in Economic Health 1. Manager: through policy, partnerships, and leadership, ensure the implementation of the EHSP and the provision of basic economic health programs.  Create a concrete scope of work, procure services, and structure a contract with service providers for business creation, attraction, retention, and expansion services.  Monitor contracts and evaluate performance of service providers.  Create an EHSP implementation team composed of City staff from relevant departments and representatives from service providers who will be charged with responsibility for implementing specific strategies. Call the team together at regular intervals to report on progress, identify obstacles to implementation, and jointly craft solutions.  Monitor the implementation of the EHSP through a set of discrete metrics (see Implementation Matrix). 2. Convener: Create an Economic Health Stakeholder Group (EHSG). This group would provide a platform for collaboration between parties directly involved with shaping the economic future of the city. Membership would include: a. private sector representation from the technology sector, healthcare, retail, tourism, and from small businesses b. foundations and non-profits c. CSU and FRCC PROPOSED ORGANIZATIONAL STRUCTURE OF THE ECONOMIC HEALTH OFFICE The new Economic Health Office will be one of three legs of the Sustainability Services Area, along with Environmental Health and Social Sustainability. It will have three divisions: Development Assistance, Business Assistance, and Communications. These divisions will be assisted by the EHSP Implementation Team, Catalyst Project Teams, and contracted service providers to manage the day-to-day activities associated with the on-going economic health programs. The Economic Health Stakeholder Group will provide input to the EHO to guide the choice and prioritization of catalyst projects. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 43 IMPLEMENTATION  Hold quarterly meetings to discuss collaboration opportunities, catalyst projects and initiatives needed to realize the economic health vision of Fort Collins. The group should identify action items and assign responsibility to group members to ensure realization of priority projects. The City should provide administrative support.  Identify and prioritize catalyst projects (See Objective 1, Strategy 1-1.3).  Create an online forum for continuous dialogue among the EHSG members. 3. Champion: advocate for policies and programs at the City that promote the economic health of Fort Collins.  Communicate to city staff and elected officials the importance of the economic health program, through workshops and newsletters.  Seek economic opportunities related to City policies and programs, particularly as they relate to sustainability.  Monitor the development process to ensure that it supports business expansion, retention, and formation. 4. Catalyst: support projects through the economic development toolbox.  With the Economic Health Stakeholder Group, devise and maintain a list of priority catalyst projects with clearly defined vision and goals for the project as it relates to the City’s over-all vision.  Identify the appropriate partners for the project and form a project team charged with moving the project forward.  Maintain a “major projects” list that tracks progress and reports activities.  Cultivate connections with the developer and broker community, and establish close working relationships. 5. Strategic Partner: assist developers and businesses to navigate the City’s development and economic assistance processes (See Objective 4, Strategy 4-4.1).  Educate developers and businesses about services and programs available to them.  Serve as a resource for developers of projects in targeted development areas and for businesses expanding or growing in Fort Collins. 6. Communicator: communicate to residents and elected officials about the importance of economic health programs.  Continue to use the Economic E-Newsletter to feature stories on various economic health initiatives within the City.  Create a module for Leadership Fort Collins to discuss the basics of economic development, how economic development is “done” in Fort Collins, and why it is important.  Use the Coloradoan and local television news programs as communications partners for reaching residents and educating them about economic development. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 44 IMPLEMENTATION 7. Reporter: report progress, performance, successes.  Track performance metrics and outcome measures to understand the success of the City’s economic health initiatives and the health of the City’s economy, in general.  Create a standard report card to be updated annually that would make key data and findings available to the general public (and that can be integrated into the existing Community Scorecard).  Publicize successes from economic health initiatives, as well as entrepreneurial ventures, to businesses and residents of Fort Collins. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 45 IMPLEMENTATION Implementation Matrix Quarter Year Lead Staff Objective No. Strategy / Action Status 1: Business Support 1.0.0 Enhance Fort Collins’ business retention and expansion program. 1: Business Support 1.1.0 Continue to expand the visitation program for the city’s largest employers. 1: Business Support 1.1.1 Establish and maintain relationships with at least the top 20 largest employers in Fort Collins to keep a direct line open to the business community. 1: Business Support 1.1.2 Visit these employers annually to understand their health, ascertain any needs, and identify ways the City can help. 1: Business Support 1.1.3 For those employers with headquarters located outside of Fort Collins, establish relationships with the headquarters by meeting face to face with executive(s) from the headquarters either in their home office or on a VIP trip to Fort Collins. 1: Business Support 1.2.0 Continue to expand the reach of the BRE survey and coordinate with NCEDC on the BRE survey to produce county-wide results. 1: Business Support 1.2.1 Establish and maintain a database of existing businesses in Fort Collins using Sales and Use Tax licenses. Revise the application form to include information useful for the BRE program, such as number of employees, email address of contact, and applicable NAICS code. 1: Business Support 1.2.2 Use this database to populate a web-based CRM system that can be shared between the City, NCEDC, and the Chamber. 1: Business Support 1.2.3 Include questions on the survey for employers regarding their attitude toward the business climate, talent availability, and workforce quality in Fort Collins. Also, ask employers what their primary challenge to doing business in Fort Collins is. 1: Business Support 1.2.4 Conduct regular visits to at least 40 businesses each year; schedule in- person interviews to ask detailed questions about business needs. 1: Business Support 1.2.5 Compile the results of the survey and key findings from the visits into an annual report on the state of Fort Collins’ businesses and the overall business climate. 1: Business Support 1.2.6 Create formal response mechanisms, such as a rapid response team, to address the needs of any employer facing closure or relocation outside of Fort Collins. The team should be composed of representatives from the various economic development stakeholders that have the ability and authority to directly address the needs of the employer. 1: Business Support 1.3.0 Establish industry councils for broad industry groups such as manufacturing, healthcare, and technology. 1: Business Support 1.3.1 Hold regular meetings to provide forums for communication. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 46 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 1: Business Support 1.3.2 Identify cross-cutting issues that affect the sector. 1: Business Support 1.3.3 Craft solutions, monitor the issues, and track progress towards addressing the issues. 1: Business Support 2.0.0 Create stronger connections between components of Fort Collins’ small business support system. 1: Business Support 2.1.0 Institute a more coordinated small business support network by fostering more interaction between small business service providers including the Chamber, SBDC, the Poudre River Public Library Business and Non-Profit Center, Be Local Northern Colorado, Beet Street, and others. 1: Business Support 2.1.1 Hold periodic meetings of these stakeholders to plan or share calendars of events, discuss ideas and issues, and identify ways to better serve the small business community of Fort Collins. 1: Business Support 2.1.2 Identify barriers to starting a business in Fort Collins and work with the appropriate entities to alleviate those barriers. 1: Business Support 2.1.3 Coordinate a communications and outreach effort to inform the small business community of the resources available to them. 1: Business Support 2.2.0 Fill gaps in services to ensure that small businesses have access to the services and resources that they need. 1: Business Support 2.2.1 Develop a shared information clearinghouse to provide sophisticated, high quality industry and market information to small businesses and entrepreneurs. 1: Business Support 2.2.2 Strengthen the capacity of the SBDC to provide the small business community with one-on-one counseling. 1: Business Support 2.2.3 Establish a more comprehensive technical assistance and training program that offers workshops and training series for basic and advanced education for small business owners. 1: Business Support 2.3.0 Continue to encourage Fort Collins residents to support local business. 1: Business Support 2.3.1 Merge the Shop Fort Collins First initiative and Be Local Northern Colorado initiative to avoid duplication of efforts . 1: Business Support 2.3.2 Continue to raise awareness of the benefits of shopping local with an on- going communications and marketing campaign. 1: Business Support 2.3.3 Continue such programs as the Be Local Coupon Book, the 20/20 Challenge, and Uniquely Fort Collins cluster initiatives . 1: Business Support 2.3.4 Strengthen the City’s commitment to local business through its procurement practices and programs to help local businesses secure City contracts. 2: Innovation 1.0.0 Expand RMI’s role as the nexus for innovation in both Fort Collins and the Front Range. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 47 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 2: Innovation 1.1.0 Create an interface for continuous collaboration between academia, the private sector, the public sector and non-profits to promote a more entrepreneurial culture and train entrepreneurial leadership and talent. 2: Innovation 1.1.1 Engage the leadership of organizations, enterprises and institutions that can move forward ideas and projects to catalyze innovation in Fort Collins and the greater region. 2: Innovation 1.1.2 Encourage innovation and collaboration through showcase events, speaker series, and networking opportunities. 2: Innovation 1.1.3 Continue to strengthen and expand RMI’s business incubation program. 2: Innovation 1.1.4 Promote entrepreneurial education at Poudre School District, Front Range Community College, and CSU by facilitating the creation of programs that focus on entrepreneurial training, technology commercialization, and business formation. 2: Innovation 1.1.5 Actively engage CSU students in entrepreneurial activities through student internships, capstone projects, colloquia and conferences, and business plan contests that provide opportunities for interaction with local entrepreneurs and innovative companies. 2: Innovation 1.1.6 Interact with other innovative regions world-wide to stay informed of cutting- edge models for innovation. 2: Innovation 1.2.0 Provide support for industry cluster groups. 2: Innovation 1.2.1 Differentiate between types of clusters: emerging, growth, existing 2: Innovation 1.2.2 Incubate nascent groups through coordination of activities, outreach, and information. 2: Innovation 1.2.3 Provide administrative support for cluster groups that need less than full-time support. 2: Innovation 1.2.4 Serve as a resource for cluster managers on best practices and strategies for cluster development. 2: Innovation 1.2.5 In partnership with the City, coordinate a challenge grants program to fund industry cluster projects. 2: Innovation 1.2.6 For select industries, contract or hire industry experts to provide technical know-how to support commercialization, business formation, and business growth. 2: Innovation 1.2.7 Periodically review industry clusters programs and economic data to identify emerging clusters that need incubation support and to determine if existing clusters have reached critical mass and no longer need incubation support. 2: Innovation 1.3.0 Continue to provide incubation services to start-ups with a renewed focus on successful funding and exit. 2: Innovation 1.3.1 Continue to provide networking and educational opportunities for entrepreneurs through events such as Innovation After-Hours, and SAGE. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 48 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 2: Innovation 1.3.2 Raise the profile of RMI clients through a stringent application process and initial screening. 2: Innovation 1.3.3 Build a strong network of seasoned entrepreneurs, business service providers, financing experts, and technical experts that are willing to volunteer time to work with the most promising ventures. 2: Innovation 1.3.4 Create a relationship map that provides entrepreneurs with access to Fort Collins network of business services, technical know-how, capital sources, and other resources. 2: Innovation 1.3.5 Leverage existing training and technical assistance providers to educate entrepreneurs in the basics of busines 2: Innovation 1.4.0 Strengthen ties to innovation-driven communities. 2: Innovation 1.4.1 Consider outside members to serve on local boards. 2: Innovation 1.4.2 Actively develop entrepreneurial linkages with other incubators, institutes, and businesses. 2: Innovation 1.4.3 Organize visitations and exchanges to peer communities to share best practices and lessons learned. 2: Innovation 2.0.0 Attract, develop, and retain entrepreneurs and cutting-edge companies. 2: Innovation 2.1.0 Foster a nurturing entrepreneurial culture that anchors talent and companies in Fort Collins. 2: Innovation 2.1.1 Support RMI in its activities to promote an entrepreneurial culture (See Objective 2, Strategy 1-1.1). 2: Innovation 2.1.2 Incorporate entrepreneurs in the Economic Advisory Commission and in Economic Health Stakeholder Group. 2: Innovation 2.1.3 Use local media outlets to celebrate entrepreneurial ventures and stories. 2: Innovation 2.1.4 Showcase local innovations and innovators in community centers including Old Town, the Fort Collins Museum of Discovery, and Foothills Mall. 2: Innovation 2.2.0 Build a robust capital network as part of NoCo Capital by formalizing access to the capital already present in Fort Collins and building better relationships with the venture community outside of Fort Collins. 2: Innovation 2.2.1 Establish a pre-seed fund through monetary and in-kind donations. 2: Innovation 2.2.2 Formalize an angel network in Northern Colorado and form a syndication network with other regional angel networks to bolster deal flow. 2: Innovation 2.2.3 Actively market qualified Fort Collins-based start-ups to non-local investors to get Fort Collins on their radar. Particularly, focus on Denver and Boulder investors. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 49 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 2: Innovation 2.2.4 Encourage and support local entrepreneurs in tapping into federal funding sources by applying for Small Business Innovation Research (SBIR) grants, Small Business Technology Transfer program (STTR) and other programs available to entrepreneurs. 2: Innovation 2.2.5 Expand the revolving loan fund seeded by the Section 108 HUD grant by seeking funding from organizations such as the US Economic Development Agency (EDA). Consider contracting with a Community Development Financial Institution to manage fund. 2: Innovation 2.3.0 Work with NCEDC to recruit those companies vital to the success of Fort Collins industry cluster initiatives. 2: Innovation 2.3.1 Collaborate with the industry cluster groups to identify important components of their industries missing in Fort Collins. 2: Innovation 2.3.2 Actively recruit companies to fill those specific niches. 2: Innovation 2.3.3 Be responsive to other prospects that mesh well with the culture and values of Fort Collins. 2: Innovation 2.4.0 Raise awareness of Fort Collins as a hotbed of innovation to attract or engage both investors and entrepreneurial talent. 2: Innovation 2.4.1 Leverage CSU alumni network to communicate with alumni who are entrepreneurs, looking to invest in Fort Collins, or looking to return to Fort Collins. 2: Innovation 2.4.2 Collaborate more closely with Metro Denver to raise awareness of the activities occurring in Fort Collins. 2: Innovation 2.4.3 Partner with entrepreneurship support organizations in the Greater Denver region to market opportunities in Fort Collins to a broader Colorado technology-executive talent pool. 2: Innovation 2.4.4 Market what Fort Collins and CSU are doing regarding technology start-ups to the specialists and executives already in Fort Collins, especially those at large firms. 2: Innovation 2.5.0 Expand Fort Collins’ capacity to support technology commercialization and product development. 2: Innovation 2.5.1 Work with local manufacturers and companies to create an asset map of the resources and services available in the region to support product development and early-stage manufacturing. 2: Innovation 2.5.2 Identify areas of the product lifecycle that Fort Collins does not currently (but should) support with local services. 2: Innovation 2.5.3 Develop projects and strategies to address the above gaps. 3: Talent Management 1.0.0 Create and staff a workforce development program. 3: Talent Management 1.1.0 Work more closely with Larimer County Workforce Center and Workforce Investment Board (WIB). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 50 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 3: Talent Management 1.1.1 Incorporate Fort Collins’ target industries into the Workforce Center’s set of target industries to bring about closer coordination of training programs and emerging industries. 3: Talent Management 1.1.2 Promote the Workforce Center’s services to businesses and talent across Fort Collins. 3: Talent Management 1.1.3 Incorporate workforce development into economic health programming across the city to promote cross-pollination and collaboration. 3: Talent Management 1.2.0 Collect, analyze, and report workforce data to enhance the community’s understanding of its labor force, market, and industry issues. 3: Talent Management 1.2.1 Use the existing BRE survey to collect current and localized information on Fort Collins’ labor force and labor shed. 3: Talent Management 1.2.2 On a quarterly basis, publish a Fort Collins and Larimer County workforce report that provides an overview of pertinent labor market information and highlights important accomplishments, programs, and issues in workforce development. 3: Talent Management 1.2.3 Provide updated labor market information on a quarterly basis at the county and city level that is accessible to the public. 3: Talent Management 1.3.0 Engage employers through meaningful participation and support in programs and initiatives aimed at resolving their specific workforce issues and improving workforce training, including K-12 education. 3: Talent Management 1.3.1 Create a sub-committee of the WIB comprised of employers, education institutions, workforce development, and the City. 3: Talent Management 1.3.2 Coordinate with industry councils to understand and incorporate their workforce-related issues (see Objective One, Strategy 1-1.3). 3: Talent Management 1.3.3 Design programs to address the primary issues raised by the committee. 3: Talent Management 1.3.4 Meet on a quarterly basis to discuss on-going programs and initiatives as well as cross-cutting issues. 3: Talent Management 1.4.0 Educate local youth on the wide range of career opportunities available to them locally, with a focus on changing the perception of manufacturing and heavy industry jobs. 3: Talent Management 1.4.1 Hold annual career days at local high schools that expose students to different professions through speakers, videos, factory tours, and shadowing opportunities. 3: Talent Management 1.4.2 Organize factory tours that showcase the advanced technologies used in manufacturing processes and the skills needed to work in that environment. 3: Talent Management 1.4.3 Create an apprenticeship or internship program that would provide hands-on learning experiences for high school students. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 51 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 3: Talent Management 1.4.4 Coordinate with FRCC to promote opportunities available to high school students to obtain certifications and enhance their work readiness upon graduation. 3: Talent Management 2.0.0 Promote opportunities for leadership training, professional development, and networking. 3: Talent Management 2.1.0 Facilitate greater levels of civic engagement. 3: Talent Management 2.1.1 Continue City Works, Leadership Fort Collins, and Envision: Young Professionals as a means of training future leaders, educating them about opportunities to participate in the community, and engaging them. Coordinate the programs to better define their distinct purposes and/or audiences to create a more robust leadership development initiative. 3: Talent Management 2.1.2 Encourage emerging leaders to apply for seats on city boards and commissions by hosting workshops on what the various boards and commissions do and providing information on which seats are available. 3: Talent Management 2.1.3 Work with local organizations, businesses, and institutions of higher education to develop a volunteer clearinghouse to connect emerging leaders with other opportunities to get involved with the community. 3: Talent Management 2.1.4 Create an annual awards program to honor individuals making a difference in the community. 3: Talent Management 2.2.0 Provide professional development opportunities. 3: Talent Management 2.2.1 In partnership with the WIB, establish an internship and apprenticeship program that would match interested high school and college students with local employers. 3: Talent Management 2.2.2 Market CSU and FRCC continuing education programs to young professionals through relevant organizations. 3: Talent Management 2.2.3 Establish a mentorship program within the Chamber of Commerce. 3: Talent Management 2.3.0 Enhance access to and awareness of local employment opportunities. 3: Talent Management 2.3.1 Launch an on-line, Fort Collins-centric job and gig board to increase connectivity between employers and talent. Link to the board from other Fort Collins websites including the City, Chamber, Convention & Visitors Bureau, RMI, and CSU Alumni Network, and CSU Career Center. Indeed.com provides a low-cost option for accomplishing this. 3: Talent Management 2.3.2 Encourage employers to post job and internship opportunities on the Fort Collins job and gig board. 3: Talent Management 2.3.3 Create opportunities for newcomers and job-seekers to network with local entrepreneurs and industry leaders in Fort Collins area businesses. 3: Talent Management 2.3.4 Provide educational opportunities and training workshops to support the 1099 workforce. This should be targeted both to workers and the employers contracting with these workers. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 52 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 3: Talent Management 3.0.0 Strengthen the innovation and entrepreneurial talent pipeline. 3: Talent Management 3.1.0 Engage the CSU Alumni Network as a key source of talent. 3: Talent Management 3.1.1 Partner with the CSU Alumni Association to communicate to alumni about the innovation and related events happening in Fort Collins. 3: Talent Management 3.1.2 Make Fort Collins job and gig board available to CSU Alumni (See Objective 3, Strategy 2-2.3). 3: Talent Management 3.1.3 Host alumni reception(s) at RMI with regional alumni groups to showcase what Fort Collins is doing. 3: Talent Management 3.1.4 Sponsor a CSU Alumni entrepreneurs network to build a strong connection between RMI and CSU Alumni entrepreneurs, even if they are not currently located in Fort Collins. 3: Talent Management 3.1.5 Reach out to successful entrepreneurs and executives who are CSU Alumni and invite them to join RMI’s initiatives. 3: Talent Management 3.2.0 Increase the involvement of CSU, in particular the Colleges of Business and Engineering, as sources of entrepreneurial talent. 3: Talent Management 3.2.1 Strengthen the existing entrepreneurship program in the College of Business and extend its reach across campus. 3: Talent Management 3.2.2 Introduce intensive business formation courses and events such as Venture Labs and 3-Day Start-Up to generate interest in and momentum for student- led entrepreneurial ventures. 3: Talent Management 3.2.3 Create a student internship program at RMI to prepare students for employment in start-up and young companies. 3: Talent Management 3.2.4 Continue to explore ways of engaging faculty in technology commercialization and business formation through the revision of tenure policies to factor in such activities, by educating faculty about commercialization, and by fostering a more entrepreneurial culture at CSU in general. 3: Talent Management 3.2.5 Coordinate continuing education programs in partnership with RMI and the SBDC to provide a full range of education opportunities to entrepreneurs. 3: Talent Management 3.3.0 Leverage the knowledge base of seasoned entrepreneurs in Fort Collins. 3: Talent Management 3.3.1 Continue to recruit volunteer advisors to participate in RMI. 3: Talent Management 3.3.2 Create networking opportunities for new entrepreneurs to interact with seasoned entrepreneurs. 3: Talent Management 3.3.3 Host a speaker series that features seasoned entrepreneurs talking about lessons learned and topics of interest. 3: Talent Management 4.0.0 Use tourism and visitation as a talent and business outreach strategy to support industry cluster development. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 53 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 3: Talent Management 4.1.0 Update CVB Website to also serve as portal for talent and businesses interested in relocating to Fort Collins. 3: Talent Management 4.1.1 For individuals looking to relocate to Fort Collins, include links to relocation information on the Chamber website and to job searching tools. 3: Talent Management 4.1.2 For entrepreneurs, include links to RMI and www.FortCollinsInnovation.com. 3: Talent Management 4.1.3 For businesses, include links to Economic Health Office and NCEDC. 3: Talent Management 4.2.0 Coordinate a conference strategy that would bring key talent and businesses to Fort Collins. 3: Talent Management 4.2.1 Partner with industry cluster managers, the CVB and CSU Conference Services to identify conferences and events as well as groups of professionals and businesses that would help strengthen Fort Collins’ industry clusters. 3: Talent Management 4.2.2 Recruit conferences to Fort Collins or plan conferences or symposia that would appeal to targeted groups of professionals and businesses, and use these conferences as opportunities to showcase Fort Collins to these targeted audiences. 4: Assets & Infrastructure 1.0.0 Create a new model for a conference center in Fort Collins’ historic core. 4: Assets & Infrastructure 1.1.0 Identify uses for the space that will foster innovation, collaboration, networking, and socializing. 4: Assets & Infrastructure 1.1.1 Work with CSU and the CVB to identify programming priorities and basic requirements for the conference center. 4: Assets & Infrastructure 1.1.2 Collaborate with existing public-private entities to brainstorm unique uses for the space that would highlight the character of the community. 4: Assets & Infrastructure 1.1.3 Identify additional uses that could offer additional revenue streams to support the space (i.e., weddings, family reunions, corporate retreats, etc.) 4: Assets & Infrastructure 2.0.0 Ensure that companies in Fort Collins have options for expansion and relocation within the city limits. 4: Assets & Infrastructure 2.1.0 Conduct a needs assessment to determine types of space that will most likely be in demand. 4: Assets & Infrastructure 2.1.1 Collaborate with CSU, RMI, and the regional development community to understand what types of commercial and industrial space is available, what is currently in demand, and what the most promising companies are likely to need. 4: Assets & Infrastructure 2.1.2 Work with the industry cluster managers to identify typical space requirements needed to support industry clusters. 4: Assets & Infrastructure 2.1.3 Survey clients of RMI, the EECL, and the RIC to understand what their future needs will likely be. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 54 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 4: Assets & Infrastructure 2.1.4 Aggregate and present this information to the local development community to inform them of the likely short-term and long-term needs of Fort Collins’ businesses. 4: Assets & Infrastructure 2.2.0 Work with the broker community to create and maintain an inventory of available space in Fort Collins that meet the above criteria. 4: Assets & Infrastructure 2.2.1 Partner with Harmony Technology Park to market their available space to companies looking to expand or relocate in Fort Collins. 4: Assets & Infrastructure 2.2.2 Assist the brokers in identifying promising tenants within Fort Collins industry clusters. 4: Assets & Infrastructure 2.2.3 Share information with prospects and business assistance clients on what sites are available. 4: Assets & Infrastructure 2.3.0 If available space is not adequate to meet long-term goals for business growth and economic diversification, evaluate feasibility of establishing a new technology park or parks in the city limits. 4: Assets & Infrastructure 2.3.1 Potential sites for parks include an Innovation Park that would connect the EECL and RMI and a Prospect Technology Park on the 100 acres of university-owned land with I-25 frontage. 4: Assets & Infrastructure 2.3.2 Preserve potential sites as future employment centers through zoning and land-use policies and possibly land banking. 4: Assets & Infrastructure 3.0.0 Continue to encourage the development of vibrant business districts, commercial nodes, and commercial corridors through infill and redevelopment projects. 4: Assets & Infrastructure 3.1.0 Support on-going initiatives in the Downtown Development District, Mason Corridor, North College Corridor, Midtown Corridor, and Harmony Road Corridor. 4: Assets & Infrastructure 3.1.1 Continue outreach to the developer and broker communities to communicate the City’s vision for those areas and how the City can participate. 4: Assets & Infrastructure 3.1.2 Continue to assess the City’s regulatory framework to ensure it is supportive of desired development. 4: Assets & Infrastructure 3.1.3 Encourage the expansion or relocation of business in targeted development areas to stimulate and leverage commercial activity. 4: Assets & Infrastructure 3.1.4 Create a Business Improvement District (BID) for Midtown and the Mason Corridor Commercial District. 4: Assets & Infrastructure 3.2.0 Focus on strategic projects that inspire private sector response and act as catalysts. 4: Assets & Infrastructure 3.2.1 Ensure that land use policies protect the areas from “lower uses” and foster high-quality development. 4: Assets & Infrastructure 3.2.2 Hold workshops with land owners and developers in each opportunity area to craft a common vision for the area. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 55 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 4: Assets & Infrastructure 3.2.3 Translate the vision into a viable blueprint that establishes a plan for achieving the vision. 4: Assets & Infrastructure 3.2.4 Strategically identify anchors for each opportunity area that can bring in the type of traffic and uses needed to catalyze development in the rest of the opportunity area. 4: Assets & Infrastructure 3.3.0 Position Fort Collins as the regional retail destination. 4: Assets & Infrastructure 3.3.1 Continue the refinement of a retail strategy with outside assistance. 4: Assets & Infrastructure 3.3.2 Prioritize redevelopment opportunities for retail in targeted investments zones. 4: Assets & Infrastructure 3.3.3 Continue to provide assistance to developers navigating the development process and financial support using creative financing mechanisms. 4: Assets & Infrastructure 4.0.0 Continue to improve the business climate as a means of retaining companies and fostering their expansion. 4: Assets & Infrastructure 4.1.0 Ensure that the development and business assistance process is predictable and transparent. 4: Assets & Infrastructure 4.1.1 Develop a clear incentives policy that outlines the use of the City’s economic development tool box. 4: Assets & Infrastructure 4.1.2 Work with representatives of the local business and development community to gather input on the development review process. 4: Assets & Infrastructure 4.1.3 Continue to benchmark the local permitting process against similar processes in neighboring communities. 4: Assets & Infrastructure 4.1.4 Continue to shepherd companies through the development process as needed. 4: Assets & Infrastructure 4.1.5 Work closely with the City Council to continue to help make the development approval process as predictable and transparent as possible. 4: Assets & Infrastructure 4.1.6 Publicize the existing outline of the development process to brokers, developers, and the community-at-large and enhance the outline where necessary. 4: Assets & Infrastructure 4.1.7 Reduce the barriers to development and redevelopment, especially in infill areas. 4: Assets & Infrastructure 4.2.0 Advocate for economic health interests in government policies and programs that impact the business climate. 4: Assets & Infrastructure 4.2.1 Communicate with elected officials and provide updates on the Strategic Plan’s implementation 4: Assets & Infrastructure 4.2.2 Seek opportunities to integrate economic health objectives into City policies and programs. 4: Assets & Infrastructure 4.2.3 Create a culture of empowerment that adapts rapidly and cost efficiently in response to the changes in the business environment. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 56 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 4: Assets & Infrastructure 5.0.0 Valuing the experience and education of the youngest citizens, continue to explore options for improving the delivery of high quality early childhood education to support working families. 4: Assets & Infrastructure 5.1.0 Work with the Fort Collins small business support network to tailor programs for childcare providers. 4: Assets & Infrastructure 5.1.1 Partner with the appropriate agencies and prepare information in the form of a planning guide to educate interested parties on how to start a child care facility, applicable regulatory requirements, funding opportunities, and links to other child care resources. 4: Assets & Infrastructure 5.1.2 Introduce training programs and technical support services specifically for childcare providers and family child care homes. 4: Assets & Infrastructure 5.1.3 Incentivize inclusion of childcare facilities in affordable housing, transit- oriented developments, and employment centers. 4: Assets & Infrastructure 5.2.0 Make funding available to support childcare-oriented businesses. 4: Assets & Infrastructure 5.2.1 Consider childcare businesses as allowable applicant for Section 108 Loan Program. 4: Assets & Infrastructure 5.2.2 Allow funds in TIF districts to be used to provide loans for the development of childcare facilities. 4: Assets & Infrastructure 5.2.3 Pursue other federal funding sources such as CDBG and HUD grants that could be used to provide capital to support the expansion and development of childcare facilities. 4: Assets & Infrastructure 5.2.4 Use overlay districts as potential tools to encourage the implementation of the opportunity area visions. 4: Assets & Infrastructure 5.2.5 Identify state and federal programs that could be leveraged to induce greater private investment 4: Assets & Infrastructure 6.0.0 Continue to foster arts and culture as an economic driver. 4: Assets & Infrastructure 6.1.0 Increase and improve opportunities for learning and expanding creative industries in Fort Collins. 4: Assets & Infrastructure 6.1.1 Encourage partnerships between educational, cultural, and business institutions that create opportunities. 4: Assets & Infrastructure 6.1.2 Expand opportunities for arts education programming and participation for youth and adults. 4: Assets & Infrastructure 6.1.3 Support the Arts Incubator of the Rockies as a means of strengthening creative enterprises. 4: Assets & Infrastructure 6.1.0 Promote visibility of the Arts and Culture. 4: Assets & Infrastructure 6.1.1 Showcase the creative industries of Fort Collins through events such as Bohemian Nights and New West Fest. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 57 IMPLEMENTATION Quarter Year Lead Staff Objective No. Strategy / Action Status 4: Assets & Infrastructure 6.1.2 Provide opportunities for local artists to display their works in public spaces across the City. 4: Assets & Infrastructure 6.1.3 Seek opportunities for Fort Collins artists to reach national and even international audiences. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 58 IMPLEMENTATION Performance Measures As part of the implementation plan, TIP worked with City staff to identify performance measures. These measures are divided into community level metrics, strategy measures, and business plan measures. The performance measures are listed below. 1. Community: Evaluating the economic health of the city Objective / Theme Metric Creating more and better economic opportunity Job Growth # of Jobs in the Fort Collins MSA, percent change year over year Wage Growth Average annual salary Underemployment Educational attainment versus job training requirements Diversify the tax base Growth of commercial tax base Assessed Value by Type Growth of retail sales Taxable Sales Private industry's share of jobs Jobs by Industry ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 59 IMPLEMENTATION 2. Strategic: Evaluating the strategies used to affect economic health Objective / Theme Metric Innovation & Entrepreneurship Technology commercialization Technologies Licensed New business formation # of New Establishments Capital access # and $ value of VC deals Wealth creation $ created by successful exits Business Retention and Expansion Companies assisted & retained # of companies assisted Jobs created Employment of companies assisted Average wages of jobs created Average hourly wage Dollars invested Investment by companies assisted Companies lost # of companies who re-located somewhere else, particularly those who were involved with innovation programs Talent Management Community Survey Results (Questions Civic Engagement, Career Advancement Opportunities, Considering Starting a Business) Job Placement through Job Board or Internship Program Community Assets & Quality of Place Investment in redevelopment areas $ investment Residential units in redevelopment areas # of Units Commercial and industrial development in redevelopment areas Square Feet of Development by Property Type Leverage of city's investment $ of private investment per $ of city investment ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 60 IMPLEMENTATION 3. Business Plan: Evaluating the Outcomes of Our BFO Offers Objective / Theme Metric Contracts with Service Providers Leverage of City's Investment $ of other funding per $ of city funding Jobs Created # of Jobs Created by Companies Assisted by Service Providers Average Wages of those Jobs Average Annual Salary Challenge Grants for Industry Clusters Leverage of City's Investment $ of other funding per $ of city funding Growth in Industry Clusters Jobs # of Jobs in Industry Cluster Establishments # of Establishments in Industry Cluster Patents # of Patents Issued by Companies in Industry Cluster Venture Capital Investment $ Invested in Industry Cluster Companies Business Assistance Using Economic Development Toolbox Private Investment in Deals Assisted by the City $ of Private Investment in Companies Assisted by EHO Jobs Created # of Jobs Created by Companies Assisted by EHO Average Wages of those Jobs Average Annual Salary Tax Base Implications Economic Impact (Jobs & Earnings) Development Assistance Private Investment in Deals Assisted by the City $ of Private Investment in Projects Assisted by EHO Square Feet of Development Square Feet of New Development by Type (Retail, Commercial, Industria) Housing Units # of Housing Units by Type (multifamily, single family, market rate, affordable) Tax Base Implications Estimate Assessed Value Communications (Outcomes) Awareness Outcomes from Community Survey ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 61 APPENDICES APPENDIX A: ASSESSMENT To provide a common framework for our recommendations, TIP began by compiling demographic and economic data on Fort Collins and the Front Range. This analysis focused on Fort Collins and Larimer County in the context of the state of Colorado and the nation where appropriate. The purpose is to understand the city’s relative economic position and highlight its competitive advantages and disadvantages. About the data We based our findings on the following elements:  A review of relevant studies, plans, and other material provided by the City of Fort Collins;  A review of economic and demographic data from primary and secondary sources, including the US Census Bureau, the Internal Revenue Service, the US Bureau of Labor Statistics, and Economic Modeling Specialists Inc. (EMSI).  The data and analysis is organized within five categories: demographics, migration and mobility, income and housing, economy, and workforce. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 62 APPENDICES Summary of Data Findings DEMOGRAPHICS  Larimer County’s population is becoming increasingly urbanized. Fort Collins and the other incorporated areas of Larimer County have been growing at a rapid pace over the last 10 years. Population in unincorporated areas has been flat. On the other hand, Fort Collins is growing more slowly than Loveland, Windsor, and Wellington and this trend is expected to continue.  The aging of the population is a demographic challenging facing the nation. While the Fort Collins MSA is expected to follow this trend, the impact will be far less dramatic compared to the rest of the nation. MIGRATION & MOBILITY  Domestic migration accounts for most of the growth in Fort Collins. The largest number of residents that move to the Fort Collins MSA are from Boulder County, and Weld County receives the largest number of outbound migrants from the MSA. Though the in-migration of residents to the Fort Collins MSA slowed from 2003 to 2005, it has since recovered and remained stable over the last 4 years.  Since 1998, immigration (international) varied between 400 and 600. From 1990 to 1998, on the other hand, the number of foreign nationals migrating to the Fort Collins MSA ranged between 1,200 and 1,600.  The daily commuter flow reveals that the City of Fort Collins is a net importer of labor. Inbound commuters come from Windsor, Loveland, Wellington, and Laporte while outbound commuters go to Denver, Boulder, Westminster, and Longmont. Education Services, Healthcare, and Professional Services are the three sectors that draw commuters into Fort Collins. Construction, Wholesale Trade, and Transportation are the three sectors that draw the most commuters out of Fort Collins. INCOME & HOUSING  Income and housing in Fort Collins follows the trends expected for a college town. The median household income is lower than the state as well as Larimer County but is comparable to the national average. In addition, the average household size is smaller.  Of note is that the housing market is tight. Fort Collins has a vacancy rate of only 6% and the median home value is almost $250,000, which is more than 30% higher than the national average. As a result, Fort Collins and Larimer County are less affordable than both the state and the nation. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 63 APPENDICES ECONOMY  Fort Collins’ unemployment is currently higher than the county as a whole, but significantly lower than the state and national unemployment rates. Since 2008, the city’s unemployment rolls have doubled and remain elevated.  The primary source of revenue for the city is sales and use tax. The receipts from sales and use tax outweigh property tax receipts 4 to 1. However, the sales and use tax base per-resident has been relatively stable over the past 10 years. Meanwhile, the property tax base, on a per-resident basis, has increased 60% over the past 10 years.  The government sector, which includes public education, is the largest employment sector in the Fort Collins MSA. The retail trade and healthcare sectors are the next largest sectors. Since 2003, the healthcare, professional services, and finance sectors have been the most rapidly growing.  In terms of relative concentration of employment versus the nation, Fort Collins’ strongest sectors are in manufacturing – breweries, engine equipment, and analytical laboratory instruments. WORKFORCE  Although the Fort Collins MSA’s workforce is highly educated, the available jobs do not necessarily meet the skill level of the residents. Forty-one percent of the population in the MSA has earned a bachelor degree or higher. However, 65% of the jobs in the MSA require only on-the-job training or previous experience; only 25% of the jobs require a 4-year degree or higher.  The largest occupation groups are sales, office and administrative support, and management. Business and financial operations, healthcare, and management are the fastest growing occupational groups. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 64 APPENDICES WEAKNESSES STRENGTHS THREATS OPPORTUNITIES growing clean energy & bioscience clusters state/regional economy ability to attract executives I-25 Corridor federal export initiative may open new opportunities for local producers R&D at federal labs & CSU open labor networks growing global demand for US products and services favorable exchange rate for US$benefits exporters collaborate more closely with CSU natural assets / outdoor playground top 5 states to do business (CNBC) fiscal sustainability educated workforce proximity to Denver regional ED collaboration with Denver, Boulder, climateSprings Colorado change unstable commodity markets immigration restrictions political instability and regional growth DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 65 APPENDICES Larimer County's population A decade of change 118,652 City of Fort Collins 143,986 64,023 Other incorporated areas 89,784 68,819 Unincorporated areas 65,860 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 2000 2005 2010 DEMOGRAPHICS FIGURE1: LARIMER COUNTY’S POPULATION OUTLOOK A Decade Of Change The population of Fort Collins pushed close to 144,000 residents in the 2010 Census. The Fort Collins MSA added about 48,000 new residents over the decade. Half of these were added in the City of Fort Collins with the remainder mostly in other incorporated areas of the county. The unincorporated areas of the county held relatively steady in population during the decade. Source: Colorado Division of Local Government, Colorado State Data Center. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 66 APPENDICES Larimer County's population outlook No changes expected in recent growth pattern 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 1970 1980 1990 2000 2010 2020 2030 2040 History Forecast DEMOGRAPHICS FIGURE 2: LARIMER COUNTY’S POPULATION OUTLOOK No changes Expected in recent growth pattern The Colorado State Data Center's most recent population forecast shows the Fort Collins MSA on track to reach 500,000 in 30 years. As of the 2010 Census, the MSA population was approaching 300,000, growing almost 19% since the 2000 census. The Colorado State Data Center's forecast represents a net increase of about 200,000 residents over the next 3 decades, a 66% increase. Source: Moody's Analytics; U.S. Census Bureau (1970-1999); Colorado Division of Local Government, Colorado State Data Center (2000-2040). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 67 APPENDICES DEMOGRAPHICS FIGURE 3: COMPARATIVE POPULATION DISTRIBUTION BY AGE The demographic characteristics of college towns always deviate from the national average and Fort Collins is no different in this respect. About 34% of the city's residents are in their 20s or early 30s. Across the US, this age cohort is only 20% of the population. The bulge of 20-34 year-olds in Fort Collins means that other age cohorts are less represented in relative terms, including seniors, children, and older adults of working age. Source: U.S. Census Bureau (American Community Survey, 2009). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 68 APPENDICES DEMOGRAPHICS FIGURE 4: LARIMER COUNTY POPULATION DISTRIBUTION BY AGE Nationwide, the age composition of the country is changing rapidly as the first baby boomers are just now beginning to retire. Over the next two decades the ranks of seniors will grow enormously. This pattern is expected to occur in the Fort Collins MSA as well, but the overall trend is minor compared to the rest of the country. The ranks of seniors will increase, but these changes in demographic composition will not be noticed as much here as in the rest of the country. Source: US Census Bureau; Moody's Analytics. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 69 APPENDICES DEMOGRAPHICS FIGURE 5: CURRENT ENROLLMENT STATUS OF THE POPULATION Nationwide, about 26% of the population is enrolled in an educational program at some level -- anything from pre-school to graduate school. Colorado looks a lot like the national average, but in Fort Collins the presence of Colorado State skews the enrollment rate for the city's population as well as the MSA. Nearly 4 of every 10 residents in the City of Fort Collins is enrolled in an educational program of some kind. Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 70 APPENDICES Demographic comparison Ancestry, homeownership, military service, language, & citizenship Family origins Germany ██████████████ ████████████████████ ███████████████████████████ ██████████████████████████ Latin America ██████████████ ██████████████████ █████████ ████████ Africa ███████████ ████ █ █ Ireland ██████████ ███████████ ██████████████ ██████████████ England ████████ ██████████ ████████████ ███████████ Asia ████ ███ ██ ███ Scandinavia ███ █████ █████████ ████████ Home Owner Renter Military service Civilian veteran Currently in uniform Primary language English Spanish Other Citizenship US-born Naturalized citizen Not yet a citizen 87% 90% 95% 94% 5% 3% 2% 2% 7% 6% 3% 4% 12% 12% 7% 6% 8% 5% 3% 5% 1% 1% <1% <1% 80% 83% 90% 89% 34% 33% 34% 47% 9% 11% 10% 8% 3% 6% 10% 9% 66% 67% 66% 53% 9% 12% 14% 12% 5% 3% 2% 4% 2% 12% 13% 16% 16% USA Colorado Larimer County Fort Collins 17% 23% 31% 29% 16% 20% 10% 10% 13% 5% 1% DEMOGRAPHICS FIGURE 6: DEMOGRAPHIC COMPARISON Ancestry, homeownership, military service, language, & citizenship A large base of rental housing is needed to accommodate student populations. In the City of Fort Collins, about 47% of occupied housing units are rentals. This trend, however, doesn't translate to the rest of the MSA. Larimer County itself has an overall homeownership rate that looks more like the state and DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 71 APPENDICES MIGRATION & MOBILITY FIGURE 7: LARIMER COUNTY MIGRATION PATTERNS Gross numbers of inbound and outbound movers since 1989 The IRS provides county-level tabulations of exemptions for annual tax return filings. When the home address of a tax return filer crosses a county line from one year to the next, the aggregated IRS files capture this as an inbound or an outbound move for a given county. These records show that inbound moves into the Fort Collins MSA grew from about 13,000 in 1989 to 18,000 in 2001. Inbound migration peaked during the tech boom, and then aligned more closely with outbound migration. Recent IRS data show that net migration into the county is still positive, but the margin hasn't regained its 1990s-era levels. Source: US Internal Revenue Service, county-to-county migration flows; Moodys Analytics. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 72 APPENDICES +0 +1,000 +2,000 +3,000 +4,000 +5,000 +6,000 +7,000 +8,000 +9,000 +10,000 1990 1995 2000 2005 2010 domestic migration immigration natural increase (births minus deaths) detail in next exhibit MIGRATION & MOBILITY FIGURE 8: COMPONENTS OF GROWTH IN FORT COLLINS MSA Natural increase and immigration have proven stable, steady contributors to the MSA's population growth, but the more volatile component of net domestic in-migration tends to be the biggest driver of population growth in most years. The Census Bureau's annual estimates of net domestic in- migration align closely with the trends seen in IRS records. A dip in net migration occurred after the tech boom of the 1990s, and the MSA has only recent begun to resume more typical growth patterns. Source: U.S. Bureau of the Census; Moody's Analytics. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 73 APPENDICES MIGRATION & MOBILITY FIGURE 9: MOBILITY RATES IN THE CITY OF FORT COLLINS BY AGE, 2006-2009 AVERAGES % of Fort Collins population that moved during an average year in each age cohort TIP analyzed city-level data from the American Community Survey for the four years from 2006-2009. This analysis documents mobility patterns by age, but it yields few surprises. In-migration into the city is heaviest among 18-19 year-olds transitioning from high school to college. Mobility is very high among those in their 20s. The analysis also shows that as adults in the City of Fort Collins grow older, their annual mobility rates generally decline. Young families with children are likely to scramble to new nests before their kids start kindergarten, but the mobility rate among school-age children then drops by half. Source: U.S. Census Bureau (American Community Surveys, 2006, 2007, 2008, & 2009). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 74 APPENDICES inbound (net moving into Larimer County) outbound (net leaving Larimer County) +1000 +1000 +800 +800 +600 +600 +400 +400 +200 +200 0 0 -200 -200 -400 -400 -600 -600 -800 -800 -1000 -1000 -1200 -1200 -1400 -1400 -1600 -1600 -1800 -1800 Boulder Jefferson Los Angeles El Paso Arapahoe Denver Weld County County County County County County County San Diego County Colorado Colorado California Colorado California Colorado Colorado Colorado 1989 2008 1989 2008 1989 2008 1989 2008 1989 2008 1989 2008 1989 2008 1989 2008 MIGRATION & MOBILITY FIGURE 10: COUNTIES WITH HISTORICALLY HIGH MIGRATION PATTERNS WITH LARIMER COUNTY Annual net migration into (out of) Larimer County from the selected counties Looking back once more at IRS tabulations, we are able to answer some basic "where" questions about mobility. Larimer County nets most of its new residents from Boulder County and picks up a relatively steady trickle of in-migrants from urban Southern California counties. Larimer loses more residents on a net basis to Weld County than anywhere else. Denver County is a distant second, but it too has recently been peeling away as many as 200-300 Larimer DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 75 APPENDICES MIGRATION & MOBILITY FIGURE 11: NET DAILY COMMUTER FLOW TO AND FROM CITY OF FORT COLLINS Four inbound commuters to city for every three who commute out Net inbound commuting into the City of Fort Collins narrowed during the recession that followed the tech boom (about 2003), but inbound commuting growth has since resumed. The city nets about 10,000 inbound commuters. What these means in real terms is that the city's job base exceeds the number of employed residents by about 10,000. Source: US Internal Revenue Service, county-to-county migration flows; Moodys Analytics. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 76 APPENDICES inbound (net commuting into Fort Collins) outbound (net commuting out of Fort Collins) +1,200 +1,200 +1,000 +1,000 +800 +800 +600 +600 +400 +400 +200 +200 0 0 -200 -200 -400 -400 -600 -600 -800 -800 -1,000 -1,000 -1,200 -1,200 -1,400 -1,400 -1,600 -1,600 -1,800 -1,800 -2,000 -2,000 City of City of City of City of City of City of City of Denver Boulder Westminster Longmont Laporte Wellington City of Colorado Loveland Windsor Colorado Colorado Colorado Colorado Colorado Colorado Colorado 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 MIGRATION & MOBILITY FIGURE 12: NET DAILY COMMUTER FLOW BETWEEN CITY OF FORT COLLINS AND OTHER CITIES Net outbound flows from Fort Collins to cities further south; most net inbound traffic is local Commuters who reside in the City of Fort Collins but work elsewhere are most likely headed to work in Denver, Boulder, or other cities to the south. Fort Collins pulls in its inbound commuters mostly from surrounding cities within the MSA. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 77 APPENDICES inbound (net commuting into the City of Fort Collins) outbound (net commuting out of the City of Fort Collins) +8000 +8000 +8000 +8000 +7500 +7500 +7500 +7500 +7000 +7000 +7000 +7000 +6500 +6500 +6500 +6500 +6000 +6000 +6000 +6000 +5500 +5500 +5500 +5500 +5000 +5000 +5000 +5000 +4500 +4500 +4500 +4500 +4000 +4000 +4000 +4000 +3500 +3500 +3500 +3500 +3000 +3000 +3000 +3000 +2500 +2500 +2500 +2500 +2000 +2000 +2000 +2000 +1500 +1500 +1500 +1500 +1000 +1000 +1000 +1000 +500 +500 +500 +500 0 0 0 0 -500 -500 -500 -500 -1000 -1000 -1000 -1000 -1500 -1500 -1500 -1500 -2000 -2000 -2000 -2000 by age cohort by annual earnings Under 30 30 to 54 55 or older <$15,000 $15k to $40k >$40,000 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 2002 2009 MIGRATION & MOBILITY FIGURE 13: FORT COLLINS COMMUTING PATTERNS BY SOCIODEMOGRAPHIC CHARACTERISTICS Variation by age, but less variation by earnings Commuting patterns by earnings show surprisingly little variation in pattern over the past several years. Commuting patterns by age, however, show one key trend: the recession following the tech boom appears to have impacted younger workers more than others. Those under the age of 30 were more likely to commute out of the city for work in the first half of the decade. This trend has since reversed; since 2006, the city has pulled in more workers under the age of 30 than it has lost. Still, this net DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 78 APPENDICES MIGRATION & MOBILITY FIGURE 14: NET DAILY COMMUTER FLOW TO/FROM CITY OF FORT COLLINS BY ECONOMIC SECTOR City residents who work in construction, wholesale trade, transportation/warehousing, and information/media sectors are more likely to leave the city limits for work than those who work in other sectors of the economy. The city's education, healthcare, and professional services sectors draw considerable inbound traffic, as does the government sector. The city's manufacturing sector once attracted heavy inbound commuting, but as recently as 2009, this inbound flow had reversed. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 79 APPENDICES INCOME & HOUSING FIGURE 15:HOUSEHOLD SNAPSHOTS Top 3 household segments in Fort Collins #1 COLLEGE TOWNS #2 UP AND COMING FAMILIES #3 METROPOLITANS Demographic With a median age of 24.4 years, College Towns is the third youngest of all the Tapestry segments. Most residents are aged between 18 and 34 years and live in single-person or shared households. One-fourth of households are occupied by married-couple families. The race profile of this market is somewhat similar to the US profile. Approximately three-fourths of the residents are white. Up and Coming Families represents Tapestry Segmentation’s second highest household growth market. Residents of these neighborhoods are young, affluent families with younger children. Most of the residents are white; however, diversity is increasing as the segment grows. Residents of Metropolitans communities prefer to live in older city neighborhoods. Approximately half of these households are singles who live alone or with others; 40 percent are married-couple families. One in four of the residents is aged 20–34 years. Diversity is low; most of the population is white. Socioeconomic College Town residents are focused on education. Many residents are enrolled in the university and others stay in the community to teach or do research. Because many students only work part-time, the median household income is low. Most of the employed residents work in the service industry, holding on- and off-campus jobs in educational services, health care, and food preparation. In addition, the median net worth is very low. Residents of Up and Coming Families are earning above-average incomes. The median household income is $76,135, higher than the national median. The median net worth is $175,142. Residents of this segment are highly educated. Labor force participation is high and unemployment is low. The labor force participation rate is well above average. Half of the residents who are employed work in professional or managerial positions and they are highly educated. The median household income is $60,191; the median net worth is $102,460. Residential Students in off-campus housing live in low-income apartment rentals. Most of the owner-occupied dwellings are single family. The median home value is $137,707. One-third of the housing is single-family structures. Most residents live in new single-family housing; more than half the housing units were built in the last 10 years. Home ownership is at 83 percent. The median home value is $175,637. Residents of Metropolitans neighborhoods live in an DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 80 APPENDICES #1 COLLEGE TOWNS #2 UP AND COMING FAMILIES #3 METROPOLITANS Preferences Convenience dictates food choices; they usually buy ready- made, easy-to-prepare, or frozen meals, frozen pasta, pizza crusts, and peanut butter and jelly at the closest grocery store. With their busy lifestyles, they frequently eat out or order in from fast-food restaurants, particularly McDonald’s, Wendy’s, and pizza outlets during the week; however, many cook at home over the weekend. They buy books online and in stores. They have student loans and bank online or by ATM. These computer-savvy students own laptop computers or expensive desktop personal computers and the peripherals to match. Connecting to the Internet is essential; they go online to research assignments, look for jobs, check e-mail, and download music. Keeping in touch is also important; they buy and use cell phones and accessories. New to living on their own, many College Towns residents purchase bedding, bath, and cooking products. They own few appliances but, at a minimum, have a microwave oven, a toaster, and an upright vacuum cleaner. Their lifestyle is very casual. They rank high for participating in nearly every outdoor sport and athletic activity. College Towns residents attend country music and rock concerts and college basketball and football games, play pool, and go to movies and bars. They also participate in public activities including fund-raising and volunteer work. They usually listen to alternative music on their MP3 players, tune in to public radio, and watch MTV and Comedy Central on cable TV. They shop at discount stores but prefer to buy branded clothes from Old Navy, Gap, and Target. Family and home dictate the products these residents buy. Many are beginning or expanding their families, so baby equipment, children’s clothing, and toys are essential purchases. Because many are first-time homeowners, basic household furniture and lawn fertilizer, weed control, and insecticide products are important. Car loans and mortgage payments are major household budget items. They are most likely to own or lease an SUV or a minivan. They eat out at family restaurants, especially on the weekends, and buy fast food at the drive-through or for takeout. They play softball, take the kids to the zoo, and visit theme parks (generally Sea World or Disney World) where they make good use of their digital camera or camcorder. They rent comedy, family, and action/adventure DVDs. Cable station favorites include Country Music Channel, ESPN news, The Learning Channel, and the Disney Channel. They listen to country, soft rock, and contemporary hit radio. Metropolitans residents are no different from other owners of older homes who incur costs for maintenance and remodeling. They will contract for lawn maintenance and professional housecleaning services. Many will own or lease a station wagon. Planning for the future, residents own shares in investment funds, contribute to IRA savings accounts, and hold large life insurance policies. DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 81 APPENDICES INCOME & HOUSING FIGURE 16: HOUSEHOLD COMPARISON Household size, income, and housing stock In Fort Collins, the average household size is below the national average. Housing demand (reflected in occupancy rates) is relatively high, which may put some pressure on prices and affordability. Six of every 10 housing units in the city has been constructed since 1980. Barely 1 in 10 housing units in the city predates the 1960s. Note: The affordability ratio is the median home value divided by the median household income. The "ratio" equates the home price to raw earning potential (expressed in years of gross income needed to pay for the home) The lower the number, the more affordable the housing. Median household income for the 9- county region is an average of the counties weighted by the number of households. Median home prices in each county are weighted by the number of occupied housing units to estimate the 9-county median. Source: U.S. Census Bureau (American Community Survey, 2009). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 82 APPENDICES INCOME & HOUSING FIGURE 17: DISTRIBUTION OF HOUSEHOLD INCOME Share of total households by income level Income distribution in the City of Fort Collins closely parallels the national average. The main difference is that Fort Collins has a bulge of households in the $15,000-$25,000 range. This bulge is likely to be attributable to a high rate of part-time employment associated with the college-age population. Source: U.S. Census Bureau (American Community Survey, 2009). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 83 APPENDICES INCOME & HOUSING FIGURE 18: HOUSING AFFORDABILITY RATIOS The easy rule-of-thumb for measuring housing affordability is the ratio of median home price to median household income. This ratio is essentially the number of years a typical household would need to pay for a median-priced housing unit if, in theory, 100% of income were applied to the principal until it was paid off. The lower the ratio, the more affordable the housing. Fort Collins' affordability index (4.9) exceeds the national average by a wider margin than either the state or the county. A large student population keeps the city's median income relatively low so this drives up the affordability ratio, at least on paper. It's important to note that most students in this city are renters, so real affordability for permanent residents may actually be better than the data seem to suggest. Note: Bubble sizes reflect relative affordability: Fort Collins (4.9), Larimer County (4.5), Colorado (4.3), US average (3.7). Source: U.S. Census Bureau. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 84 APPENDICES INCOME & HOUSING FIGURE 19: CONSUMER SPENDING IN FORT COLLINS RELATIVE TO THE US Extremes reflect age demographics of a college town US average = 100 for each spending category ESRI developed metrics based on Census Bureau data to estimate consumer spending rates for various types of household consumption. In the City of Fort Collins, the patterns are straightforward. The presence of CSU drives up household spending rates for education and computer equipment. The city's young student population tends to be healthy and not yet thinking about retirement, a professional wardrobe, or furnishing a new home, so consumer spending is relatively low in these categories. Source: ESRI; US Bureau of Labor Statistics, Consumer Expenditure Surveys. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 85 APPENDICES ECONOMY FIGURE 20: AVERAGE ANNUAL UNEMPLOYMENT RATE, 1990-2011 (%) Latest 2011 unemployment rate relative to the historical 2-decade range Unemployment rates nationwide rose to record highs during the recent recession and have since inched along toward gradual improvement. In the city of Fort Collins, the overall historical range of unemployment as well as the current rate tend to be slightly higher than Larimer County overall. Some of this is inevitable due to the transient dynamics of a college-age population. Whatever the nuances may be between the city and the county, the city is nevertheless in slightly better shape than either the US or the Colorado state average. Note: Because seasonal adjustment is not available for all jurisdictions, none of the rates shown (including comparables) are seasonally adjusted. Source: U.S. Bureau of Labor Statistics, CPS (US rate) and LAUS (state & county rates). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 86 APPENDICES ECONOMY FIGURE 21: UNEMPLOYMENT RATES COMPARED City's business cycle has converged more with the US since the tech bust 12-month moving average of the seasonally unadjusted jobless rates To put the city's unemployment rate in context, we look back over the past 20 years. The city's unemployment rate hit record lows during the 1990s and never quite regained that edge during the next decade. Source: U.S. Bureau of Labor Statistics, LAUS (state & county rates). ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 87 APPENDICES ECONOMY FIGURE 22: THE UNEMPLOYMENT ROLLS Unemployment trends of Fort Collins residents over the past three years Monthly unemployment numbers are not seasonally adjusted, so they can only be compared to the same month in the previous year. The recent recession has been one of the most severe in recent memory. This is true in the US as well as in the City of Fort Collins. From mid-2008 to mid-2009, the city's unemployment rolls doubled. Since then, total unemployment has floated seasonally between 6,500 and 8,000. On a rolling 12-month basis, one is able to tease out incremental improvements in the monthly data, but this positive trend is weak and is still hard to see in the raw monthly numbers. Note: LAUS survey data reflect local household employment, i.e., the job status of employed residents. This is not the same as the local job base. Source: U.S. Bureau of Labor Statistics, LAUS program. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 88 APPENDICES ECONOMY FIGURE 23: ALLOCATION OF THE LOCAL PROPERTY TAX IN RECENT YEARS Millage rates of overlapping governments; total rate applicable to most properties within the city Millage rates expressed in one- thousandths. The total mill levy of 86.488 in 2010 equals about 86 cents per $100 valuation. The city's mill levy of 9.797 has remained steady for more than a decade, even as the tax rates applied by other governmental units have fluctuated. Source: City of Fort Collins, 2011-2012 Biennial Budget; Larimer County Assessor's Office. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 89 APPENDICES ECONOMY FIGURE 24: MUNICIPAL PROPERTY TAX BASE Growing much faster than population on a per-resident basis Despite a steady mill levy, the city's rising property values have raised the size of the tax base in total as well as on a per-resident basis. The growth of the tax base on a per-resident basis is particularly important. Over the decade, the property tax base, as measured on a per- resident basis, grew twice as fast as the city's population. Source: Colorado Division of Local Government, Colorado State Data Center (population); City of Fort Collins, 2011-2012 Biennial Budget; Larimer County Assessor's Office (property data). 2000 █████████████████████ 2001 ██████████████████████████ 2002 ███████████████████████████ 2003 ███████████████████████████████ 2004 ████████████████████████████████ 2005 ███████████████████████████████████ 2006 ████████████████████████████████████ 2007 ███████████████████████████████████████ 2008 ████████████████████████████████████████ 2009 █████████████████████████████████████████ 2010 ██████████████████████████████████████████ 2000 █████████████████████████ 2001 ████████████████████████████ 2002 █████████████████████████████ 2003 ██████████████████████████████████ 2004 ██████████████████████████████████ 2005 ████████████████████████████████████ 2006 █████████████████████████████████████ 2007 ███████████████████████████████████████ 2008 ███████████████████████████████████████ 2009 ████████████████████████████████████████ 2010 ████████████████████████████████████████ $7.47 $8.97 $9.32 $12.57 $13.60 $62,928 $72,152 $73,345 $85,387 $86,200 $92,297 $13.91 City's estimated taxable property value Total in US$ billions City's estimated taxable property value On a per-resident basis $14.35 $14.52 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 90 APPENDICES ECONOMY FIGURE 25: THE MAJOR SOURCES OF THE CITY’S REVENUE Combined sales and use taxes far outweigh property taxes as a revenue source) Total annual levies and collections since 1999 (US$ millions) The revenue gains the city enjoyed from rising property values were only a small part of the overall revenue stream. The city actually draws much more of its revenues from sales and use taxes. Source: City of Fort Collins, 2011-2012 Biennial Budget; Larimer County Assessor's Office. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 91 APPENDICES ECONOMY FIGURE 26: ALLOCATION OF THE LOCAL SALES AND USE TAX IN RECENT YEARS While the city's mill levy rate has held steady, the city's sales and use rate rose by 0.85% beginning January 1, 2011. The increase was approved by voters in a November 2010 election. The 0.85% incremental increase will sunset at the end of 2020 unless it is reauthorized by voters. Source: City of Fort Collins, 2011-2012 Biennial Budget. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 92 APPENDICES ECONOMY FIGURE 27: MUNICIPAL SALES AND USE TAX BASE Not keeping up with population on a per resident basis While the bulk of the city's revenues come from the sales & use tax, this tax base has grown much more slowly than the property tax base over the past decade. While taxable sales increased in total terms between 2000 and 2010, this base barely grew when measured on a per-resident basis. For every 100 residents in 2000, the city added an additional 20 newcomers over the course of the decade, which puts an obvious strain on service delivery. For every $100 of taxable sales per resident in 2000, the city had $101 by 2010. Source: Colorado Division of Local Government, Colorado State Data Center (population); City of Fort Collins, 2011-2012 Biennial Budget (sales & use tax data). 2000 ███████████████████████████████████ 2001 ███████████████████████████████████████ 2002 ███████████████████████████████████████ 2003 ███████████████████████████████████████ 2004 ████████████████████████████████████████ 2005 █████████████████████████████████████████ 2006 ████████████████████████████████████████████ 2007 ████████████████████████████████████████████ 2008 ████████████████████████████████████████████ 2009 ██████████████████████████████████████████ 2010 ███████████████████████████████████████████ 2000 ███████████████████████████████████████████ 2001 █████████████████████████████████████████████ 2002 ████████████████████████████████████████████ 2003 ███████████████████████████████████████████ 2004 ████████████████████████████████████████████ 2005 ████████████████████████████████████████████ 2006 ██████████████████████████████████████████████ 2007 ██████████████████████████████████████████████ 2008 █████████████████████████████████████████████ 2009 ██████████████████████████████████████████ 2010 ███████████████████████████████████████████ City's estimated sales & use tax base On a per-resident basis City's estimated sales & use tax base Total in US$ billions $1.80 $1.98 $1.97 $1.97 $2.02 $2.07 $2.21 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 93 APPENDICES ECONOMY FIGURE 28: MUNICIPAL DEBT BURDEN – SIGNIFICANT IMPROVEMENTS ON A PER RESIDENT BASIS For a fast-growing city, Fort Collins enjoys a surprisingly lighter debt burden today than it did a decade ago. The city's debt peaked at $213 million in 2004. In 2010, the city's overall debt was lower than in 2000. On a per-resident basis, the debt burden fell even faster from $1584 per resident in 2000 to just $1243 per resident in 2010. Source: Colorado Division of Local Government, Colorado State Data Center (population); City of Fort Collins, 2011-2012 Biennial Budget (outstanding debt). 2000 █████████████████████████████████████ 2001 █████████████████████████████████████ 2002 █████████████████████████████████████ 2003 ██████████████████████████████████ 2004 ██████████████████████████████████████████ 2005 ███████████████████████████████████████ 2006 ████████████████████████████████████ 2007 █████████████████████████████████ 2008 ████████████████████████████████ 2009 ██████████████████████████████████ 2010 ███████████████████████████████████ 2000 █████████████████████████████████████████████ 2001 ██████████████████████████████████████████ 2002 █████████████████████████████████████████ 2003 ██████████████████████████████████████ 2004 ██████████████████████████████████████████████ 2005 ██████████████████████████████████████████ 2006 ██████████████████████████████████████ 2007 ██████████████████████████████████ 2008 █████████████████████████████████ 2009 ██████████████████████████████████ 2010 ███████████████████████████████████ City's outstanding debt On a per-resident basis City's outstanding debt Total in US$ millions $188 $187 $185 $172 $213 $198 $183 $167 $164 $172 $179 $1,584 $1,505 $1,456 $1,338 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 94 APPENDICES ECONOMY FIGURE 29: VENTURE CAPITAL INVESTMENTS IN COLORADO Quarterly VC investment volumes for the state of Colorado by industry, 1995Q1 to 2011Q1 Source: ThomsonReuters; PricewaterhouseCoopers Moneytree. Bubbles sizes reflect the relative dollar value of investments by industry and by quarter The tech boom of the late 1990s brought a wave of venture capital investment into Colorado, especially in telecom, media, network hardware, and software. A decade later, investments in telecom, media, and network hardware are few and far between, but software has continued to pull in a steady stream of capital from one quarter to the next, through both recessions and booms. In recent years, Colorado's energy and biotech activities have caught the attention of investors. Venture capital now flows into these sectors as well. Industrial/Energy Biotech Software Financial Services IT Services Electronics/Instrumentation Retailing/Distribution Medical Devices & Equipment Computers & Peripherals Netw orking & Equipment Media & Enertainment Semiconductors Consumer Products & Services Business Products & Services Telecommunication Healthcare Services 1995 Q1… …2011 Q1 ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 95 APPENDICES ECONOMY FIGURE 30: START-UP & EARLY STAGE VC INVESTMENTS IN COLORADO Start-ups and early stage firms a share (%) of total VC investment volume and total VC deals As the tech boom of the late 1990s unraveled, venture capital investors funneled less capital into risky start-ups and early stage companies, preferring instead to focus on more mature investments with better risk/return profiles. By 2006, Colorado's venture capital investments began to shift once again toward start-ups and early-stage companies. Even during the recent recession, capital has continued to flow into young companies at a higher rate than in the first half of the 2000s. Over the past year, at least half of the VC deals completed in Colorado have involved start-up or early- stage companies. Source: ThomsonReuters; PricewaterhouseCoopers Moneytree. 0% 10% 20% 30% 40% 50% 60% 1995 Q4 1996 Q4 1997 Q4 1998 Q4 1999 Q4 2000 Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 Share of total $ volume Share of total completed deals ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 96 APPENDICES ECONOMY FIGURE 31: THE JOB BASE IN THE FORT COLLINS MSA Two years of setback but stronger growth in the decade ahead Job losses in the current recession have pushed the MSA's employment base in 2010 back down to the levels last seen in mid-2006. EMSI's most recent forecast for the MSA shows employment growth re-igniting in 2012 and then resuming a strong upward trajectory once again Source: EMSI Complete Employment - 2011.2. . ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 97 APPENDICES ECONOMY FIGURE 32: JOB BASE BY INDUSTRY SECTOR IN THE FORT COLLINS MSA, 2010 In most urban economies, three sectors typically lead the job market in overall terms—retail trade, healthcare, and government. Because the government sector as measured by EMSI encompasses all public education, including CSU, it leads the MSA's economy as the largest employer. It is the next tier of sectors (after these first three) that often tells us much about a local economy. In some MSAs, it is manufacturing or transportation/ warehousing that ranks high. In boom years, it is sometimes construction. In Fort Collins today, the driver here is professional services. Source: EMSI Complete Employment - 2011.2. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 98 APPENDICES ECONOMY FIGURE 33: JOB GROWTH BY INDUSTRY SECTOR IN THE FORT COLLINS MSA This chart compares the MSA's four years of job growth (2003 through 2006) with the subsequent four years when growth was slower or falling (2007 through 2010). On a sector-by-sector basis, it was professional services that drove the economy forward before the recession hit. Since 2007, this sector has held relatively flat. Healthcare has proven highly resilient through the downturn, and a few smaller sectors, including finance/insurance. The brunt of job losses have been absorbed in the manufacturing and construction sectors. Retail trade has also taken a hit. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 99 APPENDICES Source: EMSI Complete Employment - 2011.2. ECONOMY FIGURE 34: FORT COLLINS MSA INDUSTRY STRENGTHS RELATIVE TO THE US Location quotient (LQ) analysis  US average for each industry = 1.00  Regional strength > 1.25  Regional weakness <0.75 The property and leasing sector has a high location quotient but this may be due to the presence of CSU which has the potential to generate above-average rental unit turnover. More interesting among the LQs is the high rank of the professional services sector. Source: EMSI Complete Employment - 2011.2. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 100 APPENDICES ECONOMY FIGURE 35: INDUSTRY SECTOR STRENGTHS RELATIVE TO THE US Location quotients for the Fort Collins MSA at the 5-digit NAICS level. Based on industries that employed at least 400 workers in the MSA (Larimer County) in 2010. Note: NAICS code 334119 (Other Computer Peripheral Equipment Manufacturing) did not employ 400 in 2010, but because its losses since 2001 have been so severe, it was added back into\ the analysis for reference purposes. Source: EMSI Complete Employment - 2011.2. Locaton quotitent descriptions: extremely high (> 3.00) above average (>1.25) average (between 0.75 and 1.25) below average (<0.75) Net Chg Since 2001 Broad sector 3-digit code & description LQ Jobs Avg. Earnings No. of Estabs. Net Job Gain (Loss) Manufacturing 312120 Breweries 32.65 921 $71,574 5 +265 Manufacturing 333618 Other Engine Equipment Manufacturing 27.68 1,208 $61,184 2 +307 Manufacturing 334516 Analytical Laboratory Instrument Manufacturing 20.88 721 $66,132 5 +175 Manufacturing 334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 15.26 702 $137,805 10 -1,924 Manufacturing 334111 Electronic Computer Manufacturing 9.52 938 n/a n/a -409 Manufacturing 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing 9.10 494 $82,852 5 -497 Construction 238122 Nonresidential structural steel and precast concrete contractors 7.65 554 $53,801 8 +201 Administrative services 561422 Telemarketing Bureaus and Other Contact Centers 4.42 1,919 $19,755 17 +1,811 Information & media 511120 Periodical Publishers 4.01 712 $45,177 21 -17 Professional & technical services 541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) 3.50 1,752 $121,444 32 +1,488 Professional & technical services 541620 Environmental Consulting Services 2.76 406 $44,241 50 +141 Healthcare & social assistance 622310 Specialty (except Psychiatric and Substance Abuse) Hospitals 2.64 580 $80,892 1 +580 Property sales & leasing 531190 Lessors of Other Real Estate Property 2.63 575 $41,696 18 +168 Finance & insurance 523910 Miscellaneous Intermediation 2.51 1,007 $24,464 16 +746 Healthcare & social assistance 621399 Offices of All Other Miscellaneous Health Practitioners 2.49 851 $22,151 58 +417 Manufacturing 334413 Semiconductor and Related Device Manufacturing 2.42 481 $91,981 5 +188 Professional & technical services 541940 Veterinary Services 2.38 830 $25,925 75 +156 Property sales & leasing 531130 Lessors of Miniw arehouses and Self-Storage Units 2.34 870 $28,001 23 +446 Construction 238312 Nonresidential drywall contractors 2.18 464 $38,175 9 -70 Retail trade 451110 Sporting Goods Stores 2.09 635 $17,687 62 +56 Government (incl. public ed.) 920000 State government 2.01 11,613 $38,864 21 +438 Professional & technical services 541330 Engineering Services 1.86 2,017 $61,728 202 +28 Arts, entertainment, & recreation 713990 All Other Amusement and Recreation Industries 1.85 481 $13,836 35 +15 Construction 238321 Residential painting contractors 1.81 522 $20,714 68 -70 Retail trade 453310 Used Merchandise Stores 1.81 499 $14,936 26 +114 Construction 238991 All other residential trade contractors 1.80 579 $16,943 45 -1 Retail trade 452910 Warehouse Clubs and Supercenters 1.76 2,206 $22,523 7 +1,639 Retail trade 454390 Other Direct Selling Establishments 1.76 2,042 $5,616 23 +195 Construction 238222 Nonresidential plumbing and HVAC contractors 1.76 1,008 $53,251 36 +70 Professional & technical services 541990 All Other Professional, Scientific, and Technical Services 1.74 2,055 $32,411 90 -422 Administrative services 561990 All Other Support Services 1.69 511 $45,357 39 -245 Property sales & leasing 531311 Residential Property Managers 1.67 1,037 $17,811 69 +440 Property sales & leasing 531120 Lessors of Nonresidential Buildings (except Miniw arehouses) 1.65 1,192 $30,894 32 +431 Arts, entertainment, & recreation 711510 Independent Artists, Writers, and Performers 1.63 1,928 $13,029 47 +347 Oil, gas, & mining 211111 Crude Petroleum and Natural Gas Extraction 1.63 1,370 $60,141 10 +840 Arts, entertainment, & recreation 713940 Fitness and Recreational Sports Centers 1.59 1,158 $9,420 44 +444 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 101 APPENDICES WORKFORCE FIGURE 36: TWO SCENARIOS OF JOB PERFORMANCE: NATIONAL TRENDS VS. LOCAL TRENDS Employment growth history (2002-2010) and forecast (2011-2021) Dark shading represents the local median; yellow bar represents the national range between the 10th and 90th percentiles. Job growth in the MSA over the past decade outperformed the national average in most years. The MSA's recovery is a little slow, but EMSI forecasts job performance here to pull ahead of the US average in 2012, then regress back toward national trends. Source: EMSI Complete Employment - 2011.2. -5% -4% -3% -2% -1% +0% +1% +2% +3% +4% +5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 MSA US forecast ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 102 APPENDICES WORKFORCE FIGURE 37: MEDIAN HOURLY WAGE RATE BY OCCUPATIONAL GROUP MSA median wage presented in the context of the national wage range Circle represents the county median; line represents the national range between the 10th and 90th percentiles Skilled workers in the Fort Collins MSA draw higher salaries than other occupational groups. Engineers, computer scientists, healthcare professionals, attorneys, educators, scientists, and managers command the MSA's highest median wages. At the other end of the spectrum, support workers in food services and property maintenance earn median wages that skirt just above the minimum wage. Engineering professionals are by far the MSA’s best paid occupational group. Source: EMSI Complete Employment - 2011.2. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 103 APPENDICES WORKFORCE FIGURE 38: FORT COLLINS MSA'S 2010 JOB BASE BY OCCUPATIONAL GROUP More than one-quarter of the MSA's workers are employed in occupations that involve sales or office administration. This is not an unusual occupational pattern in an urban county. Even though the MSA has a high LQ for professional services, it's notable that the occupational groups that contribute to this sector -- computer specialists, engineers, scientists -- each provide only about 4,000 to 5,000 jobs in the MSA. These are relatively small numbers compared to, say, food service workers who number 13,000. Source: EMSI Complete Employment - 2011.2. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 104 APPENDICES WORKFORCE FIGURE 39: FORT COLLINS MSA'S OCCUPATIONAL GROUP CONCENTRATIONS Industries by row; occupations in columns Location quotient (LQ) analysis US average for each industry = 1.00 Regional strength > 1.25 Regional weakness <0.75 Even though the MSA supports fewer than 4,000 science-related jobs and 5,000 engineering-related jobs, these occupational groups are large enough to generate relatively high location quotients. Source: EMSI Complete Employment - 2011.2. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 105 APPENDICES WORKFORCE FIGURE 40: FORT COLLINS MSA'S OCCUPATIONAL JOB TRENDS, 2007 THROUGH 2010 A wide gap in the types of jobs gained and lost The MSA's job performance over the past four years has differed sharply across occupational groups. Blue-collar jobs in construction, production, and transportation have suffered relatively heavy losses. Other occupations have held up well during tough times. Jobs in business, healthcare, management, education, and computers have turned in gains over at least three of the past four years (if not all four). Source: EMSI Complete Employment - 2011.2. 3-year Net Change +1,771 +1,484 +1,019 +885 +757 +604 +588 +548 +505 +391 +317 +309 +265 +115 +82 +76 +2 -67 -274 -277 -686 -1,176 -2,877 Source: EMSI Complete Employment - 2011.2 -3,000 -2,500 -2,000 -1,500 -1,000 -500 +0 +500 +1,000 +1,500 +2,000 Construction & extraction Production Transportation & material moving DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 106 APPENDICES WORKFORCE FIGURE 41: EDUCATIONAL ATTAINMENT INDICATES STRONG LOCAL SKILLS AVAILABILITY Highest level of education achieved by the population age 25 or older Educational attainment levels in the Fort Collins MSA are well beyond the state and national averages. Some 41% of the MSA's adult residence have a 4-year degree or higher. In the City of Fort Collins itself the attainment rate is 49%. Source: U.S. Census Bureau (American Community Survey, 2009). no high school diploma high school diploma or GED some college but less than a 4-year degree bachelor's degree or higher USA Colorado Fort Collins City of MSA Fort Collins 15% 28% 29% 28% 11% 23% 31% 36% 7% 20% 32% 41% 6% 15% 30% 49% compare to next exhibit ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 107 APPENDICES On-the-job training or previous experience Vocational or 2-year degree 4-year degree or higher 2001 2011 2021 25% 65% 9% 27% 62% 11% 28% 12% 60% WORKFORCE FIGURE 42: …YET THE JOB BASE IN THE MSA IMPLIES WEAK DEMAND FOR SKILLS… The threshold skill level required of the MSA's existing job base While the MSA's educational attainment rates are outstanding, the job base is a bit perplexing. According to the American Community Survey, 41% of the MSA's adults age 25 or older hold a 4-year degree or more. Yet an occupational analysis of all the current jobs in the entire MSA in 2011 shows that only 27% require a 4-year degree. Part of this discrepancy can be explained by the mismatched data sources themselves. Educational attainment includes residents of the MSA age 25 or older, regardless of place of employment. The graph above represents the MSA's total job base (including part- time work and work held by those under the age of 25 or those living outside the MSA). This helps explain part of the data discrepancy, but certainly not all. Source: EMSI Complete Employment - 2011.2. On-the-job training or previous experience Vocational or 2-year degree 4-year degree or higher 2001 2011 2021 25% 65% 9% 27% 62% 11% 28% 12% 60% ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 108 APPENDICES WORKFORCE FIGURE 43: …EVEN THOUGH SOME EMPLOYERS STRUGGLE TO FIND THE SKILLS THEY NEED- 147 H1B applications were filed in the City of Fort Collins in FY 2010 Source: US Department of Labor, Office of Foreign Labor Certification. Yet even if Fort Collins suffers from underemployment of existing residents, a few employers still struggle to find the skills they need. In FY 2010, employers seeking to fill vacancies within the City of Fort Collins filed 147 applications for H1B visas for their employees. About 4 of every 5 applications were approved. Most were in fields relating to computers, science, or education. CSU filed the most applications (which includes things like post-doc work) but many of these H1B applications came from high tech companies looking to fill local jobs. Colorado State University Advanced Energy Industries Certified Avago Technologies US Denied certification Advanced Micro Devices; Centers for Disease Control & Prevention DHHS; Withdrawn before certification Larsen & Toubro; Palladius Certified but later withdrawn USDA Agricultural Research Service; Wipro Cherokee Services Group; LSI Corp; New Century Software; Pacesetter International Apolent Corp; Fujitsu America; HP Enterprise Services; Intellectual Business Resolutions; International Technology Solutions; JSMN International; Object Technology Solutions; One Tribe Creative; Otterbox FCDC; Pelco; Poudre School District; Rocky Mountain Bird Observatory; SRM Technologies Acnovate Corp; AT&T; Ayres Associates; Beckman Coulter; Broadcom Corp; Cambridge Healthcare; Columbus Technologies & Services; Cyber Sphere; DGN Technologies; ESC Engineering; Front Range Community Computer & mathematical science ████████████████████████████ College; Hew lett Packard Company; Mindlance; New Belgium Brewing Life, physical, & social science ████████████████ Company; Nexlink Systems; Punatar; Software Specialists; Sogeti USA Architecture & engineering ████████████ ESAB Group; Tollmar; Turning Point Center for Youth & Family Development; Education, training, & library █████ Vedi Technologies; V-Soft Consulting Group; Zeninfotech Management ███ Business & financial operations ███ Arts, design, & media ██ Healthcare (technical) █ Community & social services █ Sales 5 3 2 1 4 38 7 6 H1B applications by occupational group 56 32 25 10 7 6 5 3 2 1 H1B applications by approval status H1B applications by employer 81% 10% 7% DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 109 APPENDICES APPENDIX B: SUMMARY OF PUBLIC INPUT Interviewees and Focus Group Participants Ajay Menon, CSU, College of Business Dr. Joe Giles, MicroRx Kelly Peters, NCEDC Ali Shore, Poudre School District Dr. Morgan DeFort, Engines & Energy Conversion Laboratory Kevin Cory, Vestas Andrew Dorsey, Front Range Community College Dr. Terry Opgenorth, NeoTREX Laurie Hansen, Intel Ann Hutchinson, Fort Collins Area Chamber Emily Wilmsen, Public Relations Lynn Vosler, Front Range Community College Anne Lance, Teaching Tree Early Childhood Education Gordan Thibedeau, United Way Mark Kollar, St. Renatus Audrey Russell, Spirae Guy Babbitt, CETIC Mark Wdowik, CSURF, CSU Management Corp. Beth Flowers, Beet Street Hill Grimmet, Be Local Matt Robenault, DDA Brian Fabrizio, New York Life Jamie Grim, Fort Collins Area Chamber Nathan Klein Brian Janonis, Utilities Jeff Throckmorton, CWIC Peter Byrne, Crashboxx Telematics Carla Starck, Small Business Development Center Jill Shoemaker, St. Renatus Phyllis Abt, Front Range Community College Casey Brunson, CSU Jim Clark, Convention & Visitor Bureau Rick Hausman, Benchmark Realty Clint Skutchan, Fort Collins Board of Realtors Jim Palmer Rulon Stacy, PVHS Constance O’Brian, KIRA Joe Bixler, Ranchway Feeds Ryan Shaffer Cristin Keohan, Advanced Regenerative Therapies John Long, ZeroHero Events Ryan Speir, RMI Curt Richardson, Otterbox Judy Dorsey, CCEC Steve Dush, CDNS Dan Garvin, Colorado Iron & Metal Julie Brewen, Fort Collins Housing Authority Steve Wooley, Avago Darrin Osborn, Fort Collins Marriott Justin Discoe, Sprig Toys Stu McMillen David May, Fort Collins Area Chamber of Commerce Kate Hagdorn, The Neenan Company Tim Reeser, Cenergy Don Boxley, DH2i Company Kathy Dotson, Larimer County Workforce Center Todd Headley, CSURF, Tech Transfer Dr. Joe Giles, CSU, Research Innovation Center Kelly DiMartino & Kim Newcomer, CPIO Torsten Eckstein, Eckstein Diagnostics, Inc. Public Input Summary  The partnership between Colorado State University and the City of Fort Collins is particularly strong and CSU’s commitment to the economic health of Fort Collins is a huge asset to the community. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 110 APPENDICES  The city is providing much needed and much appreciated support for entrepreneurs and for redevelopment through RMI and the economic development toolbox, but many individuals and businesses are not aware of the services available. Most businesses, of all sizes, felt well-supported and encouraged by the city’s Economic Health Department and other city staff. Some large employers, businesses, and developers, however, do not perceive Fort Collins to be business-friendly in comparison to other communities where they have locations. Some feel over-burdened by city regulations, which often add significantly to development and expansion costs (they do not disagree with the intent of the regulations but note that unintended side effects of regulations are not evaluated regularly). Other business feel the length of time the city council takes to review and make decisions on development issues adds to the unpredictability of the development review process and adds to their development costs.  Talent, both young and entrepreneurial, is naturally attracted to Fort Collins. Employers generally do not have problems finding the talent they need, with the exception of certain engineering and technical occupations (which face nation-wide shortages). Entrepreneurs find the local capital network to be closed and unstructured while job-seeking talent find the local labor network closed and inaccessible.  The Fort Collins’ innovation ecosystem produces great ideas and many start-ups. Retaining those start-ups appears to be a challenge. Reasons include access to capital, executive-level talent, and suitable sites and buildings.  Fort Collins has a strong network of public sector and non-profit organizations whose mission and activities contribute to the economic health of the community. Yet there is little coordination of these activities as they pertain to economic health.  The City of Fort Collins is an active participant in partnerships with CSU, other public sector entities, and the private sector that support innovative projects that promote sustainability and better resource management.  The City of Fort Collins does not actively recruit or attract companies to the community. However, many brokers, developers, and land-owners are actively marketing Fort Collins to recruit tenants to Fort Collins.  Fort Collins is a strong regional center. Though its strength as a retail hub has eroded recently, it is still a major entertainment center, attracting residents of Loveland, Greeley, Windsor, and Cheyenne – particularly young professionals. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 111 APPENDICES Opportunity Workshop Participants Christina Vincent, City of Fort Collins Megan Bolin, City of Fort Collins David May, Fort Collins Chamber of Commerce Rocky Scott, Woodward Guy Babbit, Czero Ryan Speir, RMI Joni Friedman, Larimer County Workforce Center Steve Wooley, Avago Josh Birks, City of Fort Collins Todd Headley, CSURF Kathy Dotson, Larimer County Workforce Center In September, we held a workshop with stakeholders to discuss the primary opportunities for Fort Collins. The opportunities that came out of this workshop are listed below:  Innovation Ecosystem & Economy - Advanced manufacturing facility for prototyping and early stage production - Relationship map to connect entrepreneurs with Fort Collins capital and technical know-how - CSURF – College of Business Innovation Lab - Partnership with ACE project - Conference strategy tied with economic health goals  Talent Management - Workforce development / education “guru” for strategic engagement of business community - High school internship program - Mechanism to engage 1099ers - Worker readiness - Leveraging CSU Alumni network  Community Assets & Infrastructure - Deeper understanding of data, metrics, benchmarks, & best practices - Prospect tech park - Downtown conference center & entrepreneurial village as a system of “third places” - Interaction with river ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 112 APPENDICES Austin Visit Attendees & Outcomes Bruce Hendee, City of Fort Collins Mike Freeman, CSURF Bryan Willson, CSU, Engines & Energy Conversion Lab Tim Reeser, CSU Ventures, Cenergy Darin Atteberry, City of Fort Collins Todd Headley, CSU Ventures, Technology Transfer Dawn DeTienne, CSU, College of Business Wade Troxell, CSU and City of Fort Collins Josh Birks, City of Fort Collins A delegation from Fort Collins travelled to Austin in October 2011 to meet with peers and peer organizations in Austin to explore themes of entrepreneurship, innovation, business retention and expansion, technology commercialization and transfer, and industry cluster development. At the end of the trip, the group held a debriefing and brainstorm to distill and refine the “big ideas” for Fort Collins’ Economic Health Strategic Plan (EHSP). The following ideas were what came out of this exercise:  RMI as an innovation hub, acting as the connective tissue in the innovation ecosystem  Formalizing the City of Fort Collins’ relationships with service providers to enhance the coordination of a city-wide economic health initiative  Research consortia as a means to growing emerging industry clusters  Mechanisms for building a more robust capital network to support entrepreneurs  A hotel / conference center in partnership with CSU  Increasing CSU’s (in particular the College of Business) roll in business formation Draft Plan – Feedback and Revisions A draft plan was presented to the City in December 2011. The plan has been presented to and reviewed by the following groups:  City Staff – December 2011 – January 2012  City Council – December 2011  Economic Advisory Commission – December 2011  Stakeholder Workshop – December 2011  Public Open House – February 2012 (35 attendees) As a result of this input, the plan was restructured. Certain recommendations were added and some were moved to different objectives. The core of the plan still remains the ideas generated from the Austin Visit and the Opportunity Workshop. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 113 APPENDICES APPENDIX C: BENCHMARK RESEARCH As part of the planning process, TIP Strategies identified peer communities to benchmark economic development programs. The peers chosen were:  Charlottesville, Virginia;  Gainesville, Florida;  Corvallis, Oregon; and  Ann Arbor, Michigan. These peers were chosen because of they share common attributes with Fort Collins. Below is a summary of these characteristics: Fort Collins, CO Ann Arbor, MI Charlottesville, VA Corvallis, OR Gainesville, FL Population1 299,630 344,791 201,559 202,251 264,275 University (Ranking2) Colorado State University (#128) University of Michigan (#28) University of Virginia (#25) Oregon State University (#138) University of Florida (#58) Distance of Major Airport 70 mi to DIA 27 mi to DTW 78 mi to RIC 90 mi to PDX 80 mi to JAX Scenic Appeal / Outdoor Recreation      Culture Values Sustainability, Arts, Quality of Life      Actively Support Entrepreneurship / Innovation      Family Friendly / Not a Retiree Destination      Federal Labs or Research Centers      Boutique Industries Microbreweries Vineyards, Microbreweries Vineyards 1 2010 US Census, Total Population County for MSA. Corvallis includes Albany-Lebanon Micropolitan Area. 2 2011 US News and World Report Rankings For each peer, TIP conducted an interview with the primary economic developer of the community. On the following pages, a profile of each peer is presented along with a summary of each economic development organization’s best practices, according to the interviewee. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 114 APPENDICES Charlottesville, Virginia Web Site: http://www.charlottesville.org/Index.aspx?page=26 What is the primary focus of the city's economic development program (e.g. BRE, attraction, economic gardening, cluster development, etc)? The small office is broadly focused, but has paid special attention to workforce, small business/entrepreneurship assistance and technology for about the past decade. The city has done some work on sustainability, facilitating a series of workshops for local businesses, including a recent one on how to reduce energy usage and costs. How many people are on staff in the city's economic development department (or equivalent)? The office has four staff, including a director, assistant director, economic development specialist and office administrator. The office also coordinates and administers the functions of the Charlottesville Industrial Development Authority, which issues revenue bonds and assists with front end capital for projects. What is the budget? The budget for the office is approximately $597,000 in general funds. What are the primary economic development programs / initiatives the department funds? The budget covers staff salaries and smaller programs. However, the city has a separate strategic initiatives fund for road projects or other business development infrastructure projects that need gap funding. The amount in the fund varies, but it currently has about $1.5 million and gets replenished through the CIP process. Is there also a chamber and/or economic development corporation that is active in economic development? There are several other economic development organizations in the area including the Charlottesville Regional Chamber of Commerce and the Thomas Jefferson Partnership for Economic Development (regional umbrella group for Charlottesville and 8 surrounding counties that among other things hosts the region’s small business development center). What is the program or initiative that has had the greatest success over the past 5 years? A few years ago, the city launched a successful shop local program called “Shop Charlottesville.” Another successful partnership is the city-wide, technology zones that enable tech-based companies to receive reduction in their business professional occupancy license tax. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 115 APPENDICES How does the city partner with the University in terms of economic development, including innovation and entrepreneurship? The University of Virginia had a change in leadership about two years ago and has reorganized and created an office of commercialization and innovation partnerships. The university is reportedly trying harder to engage the external community and has also recently established a new office of economic development. The city now holds informal meetings with the university’s chief economic development person on a regular basis. There is an incubator located downtown that received financial support from the city and is housed in a city building. Does the city have any programs to promote entrepreneurship and innovation? If so, what makes their program(s) successful and what poses the greatest challenges? The incubator is one of their main programs to promote entrepreneurship and innovation in Charlottesville. The main challenge has been that it was started with minimal resources and it doesn’t have a permanent staff (it has a volunteer executive director), which makes it difficult to engage in marketing and other activities. Does the city have any programs specifically aimed at engaging the student body of the University? There is a group at the University of Virginia called the “E society” made up of undergraduates interested in entrepreneurial activities. The city often partners with this group for different events, often with the local technology council, which is called the Charlottesville Business Innovation Council. The University of Virginia’s Darden School of Business operates a Center for Entrepreneurial Leadership. The Charlottesville Business Innovation Council (CBIC) organizes day-long technology tours for local middle and high school students called “Tech Tours.” The tours were launched to expose local students to the challenging and diverse career possibilities offered by the region’s technology community. Best Practices The city launched a Job Fair three years ago with great success. The job fairs, which are reportedly the largest in Central Virginia, are held twice a year. The most recent job fair attracted 70 employers and more than 1,300 job seekers. In advance of the actual job fair the city and its partners organize workshops on interview techniques, resume writing, dressing for success, etc. The most recent job fair was sponsored by the City of Charlottesville in partnership with the County of Albemarle, the Adult Learning Center, the Department of Rehabilitative Services, the International Rescue Committee, National College, Piedmont Virginia Community College, OAR, Piedmont Workforce Network, the Virginia Employment Commission and the Virginia Workforce Center. Job opportunities for local university graduates are scarce and only a small percentage of graduates actually land a job in the Charlottesville area despite the fact that people want to stay in the region because of its high quality of life. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 116 APPENDICES Other examples of best practices:  The T100 Alumni Mentoring Program offers University of Virginia alumni the opportunity to guide start-up companies that have research origins at the University. T100 members provide hands-on mentoring and financial contributions to support companies as they evolve from concept to commercial enterprise. Mentors participate in a monthly conference call to help their team advance the commercial promise of the technology. University of Virginia.-related start-up companies and University alumni are invited to join the T100 Alumni Mentoring Program. The program is run by the University of Virginia, Office of Economic Development. For more information, visit: http://www.virginia.edu/vpr/industry/T100.html  OpenSpace, located just off the Downtown Mall at 455 Second Street SE, opened its doors to local professionals and entrepreneurs for their work and meeting needs in October of 2009. As the City's most recently constructed Class A office space, the facility offers over 6,000 square feet of space designed to accommodate the changing world of work. OpenSpace features collaboration studios, a traditional conference room, expansive worktables, kitchen and lounge areas to serve the needs of professionals who need a place to work without the responsibility of a lease. For more information, see www.getopenspace.com Other web site resources of interest: Charlottesville Business Innovation Council - www.cvillebic.org CBIC is the preeminent private-sector advocate and catalyst for entrepreneurship and technology-based economic development in the Charlottesville, Virginia region Thomas Jefferson Partnership for Economic Development - www.tjped.com The Thomas Jefferson Partnership for Economic Development is a 501(c)6 non-profit, public / private partnership formed in 1995 to help create new jobs and investment in the Greater Charlottesville Region. The partnership has recently integrated staff and resources with the Piedmont Workforce Network and Central Virginia Small Business Development Center to expand its services for existing businesses, entrepreneurs, job seekers and employers. The University of Virginia Office of Economic Development-http://www.virginia.edu/vpr/industry/ The UVA Office of Economic Development serves faculty, students, alumni, corporate and community partners by fostering connections to the programs, services, and networks that support innovation and economic growth, both within and outside the University. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 117 APPENDICES Gainesville, Florida Web site: http://www.gainesvillechamber.com/Economic-Development.aspx What is the primary focus of the city's economic development program (e.g. BRE, attraction, economic gardening, cluster development, etc)? The Chamber’s economic development’s arm is called the Council for Economic Outreach (CEO). According to the web site, “CEO’s charge is to assist existing businesses through expansion, to help grow new companies in our community and to attract new opportunities to Alachua County.” According to David Ramsey, Senior Director of Economic Development, the CEO focuses on: (1) growing new business/entrepreneurism, (2) business retention and expansion and (3) recruitment and marketing. A special emphasis is placed on new business development and entrepreneurism. How many people are on staff in the city's economic development department (or equivalent)? The Council for Economic Outreach has a staff of 3-4 people. They share a CEO with the Chamber of Commerce. Two of the staff are devoted to economic development, one staff is devoted to Innovation Gainesville (an ED plan funded by the Chamber/CEO that focuses on how to grow new companies) and there is one communications person. The City of Gainesville had a director of economic development. However, that position has been absorbed into the city’s planning department. The County just brought on an economic development coordinator in charge of economic development for the county. What is the budget? The CEO is 100% privately funded organization. The CEO and the chamber of commerce are separately funded. Neither organization is under contract with any other public entities. Both the chamber and the CEO have a very close relationship with the University of Florida. Gainesville has one high tech incubator, two life science incubators, a general incubator and a private incubator—all located downtown. What are the primary economic development programs/initiatives the department funds? The primary economic development initiative in Gainesville is known as Innovation Gainesville. See www.innovationgainesville.com for more details. Is there also a chamber and/or economic development corporation that is active in economic development? As described above, the CEO is the lead economic development organization in Gainesville. The CEO is an arm of the chamber of commerce. The city’s economic development function is primarily planning, while the county recently added an economic development coordinator position. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 118 APPENDICES What is the program or initiative that has had the greatest success over the past 5 years? According to David, the iG Initiative is hands down Gainesville’s most successful initiative over the past five year years. The strategic plan, which was developed with the assistance of “New Economy Strategies” was released about two years ago. The plan promotes “connectivity” and entrepreneurship by developing an “innovative infrastructure” that supports entrepreneurism. According to David, the initiative “fundamentally changed” the way they do economic development and brought together what was previously a very polarized community. How does the city partner with the University in terms of economic development, including innovation and entrepreneurship? The CEO serves as a conduit/liaison between business community and the University of Florida. The Economic Development University Community Committee—brings UF/ED/civic leaders together as an advisory committee. Innovation HUB is a University of Florida program, a 50,000 square foot building home to life science and high tech companies, VC and angel investors and the university’s tech transfer office. The project serves as the anchor for the entire redevelopment project of downtown Gainesville. Does the city have any programs to promote entrepreneurship and innovation? If so, what makes their program(s) successful and what poses the greatest challenges? The city owns Gainesville Technology Enterprise Center (Gtech), one of the high tech incubators. However the CEO manages the program. Does the city have any programs specifically aimed at engaging the student body of the University? The CEO works closely with the college of engineering placement office. Best Practice According to the web site, “Innovation Gainesville (iG) began as a community initiative to harness innovation to create jobs in health and green technologies and thereby to raise the standard of living in our community. IG has transformed into a cultural mindset with hundreds of individuals and organizations working to grow an environment that fosters innovation and success.” The tagline of iG is “We make cool things happen.” The initiative is being touted as “a way of life” and includes a strong marketing/branding/public relations component, including extensive use of videos and a blog. In addition, iG has produced two-sided business cards describing all the positive attributes of Gainesville and the group’s “elevator speech.” Innovation Advocates (iG volunteers) are encouraged to distribute these business cards far and wide. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 119 APPENDICES iG has also created a “knowledge road map” that reportedly includes “more than 30 unique tactics and strategies to expand economic opportunities.” The plan includes detailed metrics and specifies short, medium and long-term goals. Organizationally, iG has created four teams of volunteers: Communications, Talent, Partners and Innovation Advocates. Volunteers are asked to take an iG Pledge and are given a list of specific things they can do to fulfill that pledge such as wearing an iG t-shirt to mentoring a student to hiring an at-risk high school student to or become an iG Advocate and hand out business cards, memorize the elevator speech. Some interesting facts from the iG web site:  The University of Florida was ranked #1 Public University for transferring research discoveries to the marketplace.  Gainesville has more incubators per capita than any other U.S. city.  UF TechConnect clients have garnered over $500 million in private investment and created over 500 high tech jobs in the past seven years. For more information on UF TechConnection, visit http://www.research.ufl.edu/otl/techconnect.html ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 120 APPENDICES Corvallis, Oregon Web site: http://thebec.com What is the primary focus of the city's economic development program (e.g. BRE, attraction, economic gardening, cluster development, etc)? The Business Enterprise Center (BEC) is a 501 (c) non-profit business accelerator that works with early-stage companies in a supportive entrepreneurial environment. The goal of the BEC is to strengthen the local economy by nurturing successful firms so that they become financially viable and independent, with the potential to create jobs, commercialize new technologies and strengthen the local economy. The BEC has worked with more than 160 companies since its beginning in 1988. How many people are on staff in the city's economic development department (or equivalent)? Currently, the city does not have an economic development staff. For the past few decades, the city has traditionally run its economic development program through a contract with the chamber of commerce or another entity. In July 2011, the city transferred the economic development function from the chamber of commerce (which is now focusing more on traditional chamber roles) to the BEC. However, the new mayor decided in 2010 to form a nine-member economic development commission, which was charged with studying the issue of how to best structure an economic development department. The commission is in the process of presenting their ideas to the city council and will reportedly recommend that the city create an economic development position within the city (with county support). The BEC currently has 3 part-time staff, including a program manager, a planner/researcher and someone who assists Bill (who is retired). Bill is an independent contractor in charge of the Sustainability Enterprise Zone and also acts as a single point of contact for marketing land for industrial development. What is the budget? The BEC is funded through a mix of fees (paid by businesses for services) and grant funding (including state economic development funds). The BEC has been around for about 23 years and the city has funded them for about eight of those years at varying levels (from $6,000 to $30,000. During the same period, the county has funded the BEC for about four-five years for as much as $40,000/year. To do a good job with an accelerator, Bill recommends to plan on at least $150,000 to support it, ideally $200,000. The rock bottom minimum is $55,000/year with a pool of about 30 companies at any one time. The BEC recently relocated from a 9,000 square foot facility at the airport to a 3,000 square foot facility downtown. They are currently coaching seven companies. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 121 APPENDICES What are the primary economic development programs/initiatives the department funds? The primary focus in Corvallis is entrepreneurism and “home-grown” new business development. Is there also a chamber and/or economic development corporation that is active in economic development? At one time, the former city manager counted as many as 14 different organizations in charge of economic development in Corvallis. In an effort to coordinate efforts, the city formed a group called the Economic Vitality Partnership. An initiative/study called “Prosperity that Fits,” which was later produced by another group called the Economic Development Partnership. The city paid for the “Prosperity that Fits” study and the Economic Development Partnership eventually merged with local chamber. In addition to the BEC and Chamber of Commerce, active groups include the Small Business Development Center and the Willamette Innovators Network, which holds an annual conference each November which draws in more than 1,000 participants. What is the program or initiative that has had the greatest success over the past 5 years? The Willamette Angel Conference (WAC) is a business plan competition that started three years ago. The conference rotates between University of Oregon/Eugene and Oregon State University and is hosted by Chamber of Commerce. Last year’s prize was $200,000. The university’s support the WAC by providing the facility and supporting services and offering a sponsorship (around $5,000). The WAC is Corvallis’ most successful and visible program/best practice. It is supported by two additional programs: the Willamette Innovators Network (WIN) and the Will it Fly (WIF), which meets the first Thursday of every month and charges entrepreneurs $50 to help evaluate their ideas and flesh out their business plan. How does the city partner with the University in terms of economic development, including innovation and entrepreneurship? The city of Corvallis’ most important asset university in is Oregon State University with its $270 million research budget. Rogue Wave Software is an example of a company successfully incubated at university which went from a company of two persons to IPO. Oregon State University recently negotiated a MOU with the city. Rick Spinrad, is the Vice Provost for Research, and is one of the city’s Economic Development Commission members. Does the city have any programs to promote entrepreneurship and innovation? If so, what makes their program(s) successful and what poses the greatest challenges? The BEC is the program in the area promoting entrepreurship and innovation. The biggest challenge is stabilized funding and access to capital for start-up companies. The area’s entrepreneurs have amazing technology/ideas, but there is not a large enough “deal flow” in the region like in Silicon Valley. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 122 APPENDICES Does the city have any programs specifically aimed at engaging the student body/alumni/faculty of the University? The city has a good workforce training program and Oregon has a strong community college system. Best Practice The best practice for Corvallis is the Willamette Angel Conference described above. Other web sites of interest:  http://www.corvallischamber.com/  http://www.willametteconference.com/ ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 123 APPENDICES Ann Arbor, MI Web site: http://www.annarborusa.org/ What is the primary focus of the city's economic development program (e.g. BRE, attraction, economic gardening, cluster development, etc)? By far, the majority of activity in the Ann Arbor area (which is led by an organization called “SPARK”) is focused on helping local entrepreneurs and existing companies expand and grow. They only try to recruit businesses where there is an existing niche or cluster. The city does not have an economic development function per se. Along with the county and surrounding townships, the city outsources its economic development function to SPARK, which was established in 2005. How many people are on staff in the city's economic development department (or equivalent)? SPARK has a staff of about 18 or 19 people. What is the budget? SPARK is a nonprofit organization and has a budget of around $4 million. About 1/3 of the money comes from local taxes/governmental units, another 1/3 come from grants and the remaining 1/3 comes from private donation (of which about half are educational institutions and corporations). What are the primary economic development programs/initiatives the department funds? SPARK runs a number of programs and works with businesses that are at the very early stages of product development to Fortune 500 companies. In addition to running several business incubators, sponsoring weekly events and a boot camp for start-ups, SPARK is under contract with the State of Michigan to run a $25 million Pre-C capital program that makes small loans/co-investments for early stage companies. Is there also a chamber and/or economic development corporation that is active in economic development? SPARK is the city and region’s lead economic development organization. There is a chamber, but it focuses primarily on member services. SPARK was established in 2005 by a group of community leaders, including the current governor of Michigan. The driving force behind SPARK was the desire to create an organization focused on entrepreneurism and technology-led economic development. SPARK replaced the Washanaw Development Council, the county/city economic development group which focused on traditional business retention/expansion. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 124 APPENDICES What is the program or initiative that has had the greatest success over the past 5 years? Did not want to identify a single program or best practice. How does the city partner with the University in terms of economic development, including innovation and entrepreneurship? SPARK has an “extremely tight and close relationship” with the University of Michigan and other local higher educational institutions. SPARK staff is in constant communication with their colleagues at the university and meet monthly with their office of tech transfer. The vice president of research at University of Michigan is the chairman of the Board of SPARK. The presidents of both universities are on their board. The director of the office of tech transfer is on their executive committee. SPARK’s executive committee also has an attorney who is a venture capitalist specialist, the president of a local bank that specializes in tech start-up funding and several successful entrepreneurs. In addition, staff members from Spark serve on the advisory boards of various entities at the University of Michigan. It is essential to create a culture that supports that concept of entrepreneurism and risk taking. The collaboration between SPARK and the university is informal, but ingrained in how they do business. This close relationship didn’t happen overnight. Does the city have any programs to promote entrepreneurship and innovation? If so, what makes their program(s) successful and what poses the greatest challenges? As described above, SPARK is involved in a number of initiatives, including incubators, boot camps, business plan competitions, etc. A local volunteer group called the New Enterprise Forum (all help entrepreneurs with their investor presentations) Does the city have any programs specifically aimed at engaging the student body/alumni/faculty of the University? SPARK is one of the few ED organizations that employ a full-time person focused on talent. Her job is to connect people to highly skilled positions. She works with community college/university to talk about the skills that technology companies are looking for and make sure graduates have the training/skills they need to get those jobs. She also works with the student body to make connections so that students know where the opportunities are when they graduate. There is some level of brain drain in Ann Arbor, but not as much as in past. A large percentage of start-ups are created up by non-Michigan residents. The idea of entrepreneurship is an entire university function, not just part of the business school (also part of engineering, medical, even law school). University tells incoming freshman that they should plan on creating their own business. Engineering school had a program called “1,000 pitches.” ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 125 APPENDICES Best Practice SPARK has a Business Accelerator that offers entrepreneurial services and training, consulting, physical space and funding/incentives. SPARK also sponsors a two-day “Entrepreneur Boot Camp, which can be considered a best practice. The camp targets early stage technology driven companies that have at least one full-time person in the company and a team of two people to attend camp. A typical team will have already completed a first draft of a business plan and is in the process of validating a market opportunity and refining their plan based on market feedback. Boot Camp participants have access to Cantillon eCourse, an on- line, self-paced learning experience for technology entrepreneurs. Boot Camp participants present their company to a panel of venture investors. Prior to the actual Boto Camp, participant receive reading and presentation materials and have the opportunity to attend pre-Boot Camp sessions (i.e., Spring Training for Start-Ups). Boot Camp outcomes include:  Concise positioning statement (Elevator pitch)  Executive summary draft  Initial investor presentation  Road map to the next company milestone In addition, the Boot Camp includes an "after care" program designed to further the chances of entrepreneurial success among participating start-ups. At the conclusion of Boot Camp, eligible graduating companies may receive up to $5,000 in business consulting through Ann Arbor SPARK as well as other start-up support. For more information about the Boot Camp, go to http://www.annarborusa.org/media/files/SPARKBootCamp.pdf ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 126 APPENDICES APPENDIX D: INNOVATION ECOSYSTEM ASSESSMENT (ISAAC BARCHAS) Innovation Ecosystem Fort Collins has a robust innovation ecosystem, centered on the University and supported by impressive investments made by the University and the City to encourage the innovation economy. From this advantageous starting point, additional highly-targeted initiatives focused on attracting early-stage investment capital could produce effective payoffs. Colorado State University (CSU) is a significant innovation engine. The University’s $300 million research effort generates inventions at a rate that is slightly less efficient, but comparable to, peer institutions [Chart: Research dollars/invention disclosure: CSU, CUS, UT-Austin, UT-SD). Organizational investments such as the Research Innovation Center (RIC), the Engines and Energy Conversion Laboratory (EECL), and Colorado State University Research Foundation (CSURF) seem to be paying dividends as a commercialization support system. Additionally, the “inward” marketing effort generated by the “super-clusters” (MicroRX, NeoTREX, and Cenergy) seems to have been effective in communicating the value of commercialization to faculty and initiating a culture change towards commercialization, with invention disclosures increasing by approximately fifty percent over the past four years. [Chart: Invention disclosures 2007 vs. 2011 YTD] Although the University is an important source of innovation, there may be opportunities to leverage the University’s support systems more broadly in the community. University-owned intellectual property is currently the focus of most commercialization efforts. This is “normal” at universities, since all of the Association of University Technology Managers (AUTM) metrics emphasize this, but the implicit risk is that it may UNIVERSITY RESEARCH DOLLARS PER INVENTION DISCLOSURE (2009) Source: Research dollar data extrapolated from the National Science Foundation Survey of Research and Development Expenditures at Universities and Colleges, available at WebCASPAR at https://webcaspar.nsf.gov/index.jsp?subHeader=WebCASPARHome. Colorado State University data from CSU technology transfer office available at http://www.csurf.org/tto/per_stats.htm. University of Colorado System data from FY 2009-2010 CU Technology Transfer Performance Metrics and SWOT Analysis PPT available at https://www.cu.edu/techtransfer/downloads/FY09-10_metrics.pdf. University of Texas at Austin data from the THECB Technology Development and Transfer Report FY 2009 and FY 2010 available at http://www.thecb.state.tx.us/reports/PDF/2137.PDF. University of California San Diego data from the UC Technology Transfer Annual Report 2009, available at http://invent.ucsd.edu/info/documents/IASRptFY09.pdf. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 127 APPENDICES leave many entrepreneurs/potential entrepreneurs unsupported. The business school at CSU presents another important opportunity to connect innovation at CSU to with innovation in Fort Collins more generally. According to CSURF interviews, the business school is not significantly engaged in either teaching entrepreneurship or in supporting business building, e.g. through business plan competitions or providing student talent to incubators. The entrepreneurship education program, for example, was described as a “lesser program in the business school.” Although it is a smaller city, Fort Collins seems to have ample talent to exploit the opportunities presented by the innovation economy. Talent is not perceived to be a limiting factor by commercialization executives. This aligns with the community’s highly- educated population. Fort Collins has almost as many advanced degree holders as Boulder (26,000 vs. 33,000), and a higher percentage of Fort Collins’ population hold advanced degrees than in either Austin or San Diego. [Chart: Advanced degree holders as percentage of total population] To the extent that a new venture needs talent that it cannot find in Fort Collins, the rest of the state, especially Boulder, should act as a “bench.” For example, the Boulder Innovation Center (BIC) has a database of potential start-up executives that could serve as a resource for ventures based in Fort Collins. According to interviews, the challenge associated with accessing talent outside of Fort Collins will be attracting sufficient early stage capital. In the short-term, Fort Collins could partner with peer entrepreneurship support organizations such as BIC to market local opportunities to a broader Colorado tech/executive talent pool. The city should also promote existing technology start-ups to the technologists and CSU INVENTION DISCLOSURES (#) Source: Colorado State University Technology Transfer Office, available at http://www.csurf.org/tto/per_stats.htm. ADVANCED DEGREE HOLDERS AS A % OF TOTAL POPULATION Source: Population data from US Census bureau (2010). Advanced degree percentages from American Community Survey (2005-2009 estimates). All data sets available at http://factfinder.census.gov/home/saff/main.html?_lang=en. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 128 APPENDICES executives who are already in Fort Collins at large firms (e.g., Hewlett-Packard) but who may not have visibility into the early-stage ecosystem. While talent does not seem to be a limiting factor in Fort Collins’ innovation potential, local growth capital does seem to be a brake on its potential. As a state, Colorado is relatively well-positioned in terms of early stage funding. Colorado is in the top 10 states receiving venture capital investment. [Chart: Top 10 states for VC investment 2010] The state also has a relatively robust indigenous venture capital community. For example, ten Colorado-based VCs made a total of 22 investments last quarter alone, 12 of which were inside the state. In short, Colorado is one of the few states with a relatively large pool of potential in-state funders: in 2010, in-state VCs invested $53 million in Colorado deals. The amount of venture capital invested in Colorado puts it in an attractive position to commercialize in-state research compared to many other states, although it lags the leaders. [Chart: Venture capital investment per dollar of research spent, CA/MA/TX/CO] While the state is well-positioned, Fort Collins does not have a critical mass of early stage investment capital, which may compromise the health of its innovation economy. In interviews, economic development professionals and commercialization executives almost unanimously cited a lack of seed and growth funding as the primary “gap” in the city’s start-up ecosystem. VENTURE CAPITAL INVESTMENT PER RESEARCH DOLLAR (2009) Source: Venture capital investment data from PricewaterhouseCoopers Money Tree Report, historical data available at https://www.pwcmoneytree.com/MTPublic/ns/index.jsp. Research dollar data extrapolated from the National Science Foundation Survey of Research and Development Expenditures at Universities and Colleges, available at WebCASPAR at https://webcaspar.nsf.gov/index.jsp?subHeader=WebCASPARHome. Note that venture capital data fiscal year does not coincide with the university fiscal year precisely. TOP 10 STATES FOR VENTURE CAPITAL INVESTMENT (2010) Rank State VC $ 1 California $11,603,000,000 2 Massachusetts $2,472,000,000 3 New York $1,401,000,000 4 Texas $981,000,000 5 Illinois $732,000,000 6 Washington $634,000,000 7 Pennsylvania $559,000,000 8 North Carolina $529,000,000 9 Colorado $483,000,000 10 New Jersey $469,000,000 Source: National Venture Capital Association, Colorado 2011 ppt, available at http://www.nvca.org/index.php?option=com_docman&task=doc_download&gid=736&Itemid=93. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 129 APPENDICES Other interviews suggest, anecdotally, that this trend might worsen in the future: it was suggested that venture capital firms outside of Fort Collins who have historically invested in Fort Collins start-ups (Boulder Ventures, Vista Ventures, Sequel Ventures) are now all on their last fund, and are having difficulty raising their next fund. The only “native” venture fund is CSU Management Corporation’s “Fund 1.” At $3 million, the fund is relatively small and seems to emphasize Series A rather than seed stage investments. Given the research base at CSU, Fort Collins attracts significantly less venture investment than it should. In comparison, San Diego “earns” $1 of venture capital investment for every $0.98 of research spending at UCSD, while Fort Collins “earns” $1 of VC investment for every $9.57 of research spending at CSU. [Chart: University research dollars per dollar of VC investment by city, San Diego/Austin/Boulder/Fort Collins] Other seed funding sources, such as SBIR and/or STTR grants, may be underutilized resources. The angel investment community was more active prior to 2008, and according to interviews, has not yet recovered and re-organized since the recession. One angel investment group, NoCo Angels, is listed with ACEF, but it is not clear how active the angel community is locally or how coordinated local angels are with the University and City commercialization teams. It appears that the pool of accredited investors in the community has not been deployed effectively against early-stage technology opportunities. Strategies for how the existing innovation ecosystem should collaborate to organize known investors and market investment opportunities are discussed in more detail in the following section. UNIVERSITY RESEARCH DOLLARS PER VENTURE CAPITAL INVESTMENT BY CITY (2009) Source: Research dollar data extrapolated from the National Science Foundation Survey of Research and Development Expenditures at Universities and Colleges, available at WebCASPAR at https://webcaspar.nsf.gov/index.jsp?subHeader=WebCASPARHome. Boulder VC investment data from http://www.bouldereconomiccouncil.org/wp-content/files_mf/economicindicatorsmar2011.pdf.Ft. Collins investment data extrapolated from http://www.inviragen.com/news.php and http://www.solixbiofuels.com/content/news. Austin VC investment data available at http://www.bizjournals.com/austin/stories/2010/02/01/story3.html. San Diego VC investment data available at http://www.connect.org/programs/connect- track/docs/Q409_CONNECT%20InnovationReport.pdf. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 130 APPENDICES TOTAL INCUBATION SQUARE FOOTAGE PER UNIVERSITY RESEARCH DOLLAR (2009) Source: Incubation total square footage information available in Figure 19 source notes. Research dollar data extrapolated from the National Science Foundation Survey of Research and Development Expenditures at Universities and Colleges, available at WebCASPAR at https://webcaspar.nsf.gov/index.jsp?subHeader=WebCASPARHome. Rocky Mountain Innosphere (RMI) The Fort Collins community has made impressive and substantial investments in incubation support infrastructure, the availability of which is now a real asset for Fort Collins. In particular, the Rocky Mountain Innosphere (RMI) is a significant asset that could successfully position itself as the “connective tissue” linking Fort Collins’ early stage community to CSU (internally) and to Colorado more broadly (externally). Both functions would be strong ways of creating “virtual scale” for Fort Collins in a way that would bolster the economic health of the region. Presently, the Fort Collins community--including the RMI staff-- seem to conceive of RMI as a building and a set of educational resources. In other words, RMI’s value proposition is currently stated in terms of activities rather than outcomes. Fort Collins should embrace a bolder, more focused vision of the incubator as a physical manifestation of sets of capabilities that allow it to deliver very specific value to member companies (i.e. getting them funded). Interviews suggest that there is now sufficient incubator space to support the growth of Fort Collins’ early-stage community. Early stage incubation space “is the last thing in the world I worry about.” “We have enough wet lab space for start-ups via RIC, RMI, and University labs on a contract basis.” “Now we need to fill it up.” Empirical comparisons to aspirational peer cities, such as Austin, also indicate that Fort Collins has sufficient incubation space. Fort Collins’ incubation capacity per capita is five-fold that of Austin. [Chart: Incubation space per capita (current Figure 1)] Furthermore, Fort Collins has roughly 3 times the incubation space per university research dollar compared to Austin. [Chart: Total incubation square footage per university research dollar (current Figure 2)] INCUBATION SPACE PER CAPITA (2010) Source: Capita information from U.S. Census Bureau (2010). See Figure 19 source notes for Incubation Space data sources. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 131 APPENDICES Fort Collins may not, however, be leveraging its incubation assets efficiently to enable the growth of high-potential start-ups. One way to measure this “efficiency” is to look at the amount of venture capital invested per square foot of incubation space in a city. By this measure, Fort Collins is about 1/13th as efficient as Austin. [Chart: VC investment dollars per total incubation space (current Figure 3)] This metric is not exactly on point, as it measures VC into an MSA rather than VC into companies in the MSA’s incubators, but it is almost certainly directionally correct. This suggests that Fort Collins could benefit from sharpening the value proposition of its incubation assets, specifically RMI. Based on interviews and focus groups, the current perception of the RMI value proposition is largely based on: cost-effective office infrastructure in nice space with good location; proximity to other entrepreneurs; educational programing, such as Kauffman Fast Track; and advisory programs, such as SAGE mentoring. These are real sources of value, although at least one interviewee described RMI’s value proposition as too “generic” to have real impact. In particular, it is not clear how the current RMI value proposition directly helps member companies overcome the key barrier to technology start- up success that emerged from the interviews and focus groups: the relative scarcity of risk capital in Fort Collins relative to its technology opportunities. This indicates that RMI’s value proposition may need to evolve to more directly address this issue. A possible new RMI value proposition to member companies could be: “We will get you funded.” This institutional transition will involve a mindset shift, from “serving the community” to “building winners.” It may also mean relatively less focus on broad entrepreneurship education and support. In operational terms, the shift will require that the RMI leadership: (1) identify the most highly prospective deals; (2) disproportionately invest RMI resources in those deals to “polish” them and prepare them to receive investment; and (3) aggressively market those deals to capital. To identify the most highly prospective deals, RMI should partner more directly with Colorado State University, especially CSURE’s CSU-Ventures program and the EECL. CSU is a primary source of commercial innovation in Fort Collins and has invested in the CSU-Ventures infrastructure to accelerate successful commercialization. There currently seems to be little coordination between RMI and CSU-Ventures and/or EECL. RMI’s value proposition to CSU-Ventures and EECL could/should be: “We VC INVESTMENT DOLLAR PER TOTAL INCUBATION SPACE BY CITY (2009) Source: Incubation source information available in Figure 19. Ft. Collins investment data extrapolated from http://www.inviragen.com/news.php and http://www.solixbiofuels.com/content/news. Austin VC investment data available at http://www.bizjournals.com/austin/stories/2010/02/01/story3.html. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 132 APPENDICES will aggressively prepare your companies and market them to capital outside of Fort Collins.” In addition to creating more connective tissue between CSU’s commercialization assets and RMI, the incubator could attract other strong candidates by marketing its capabilities to the Fort Collins technology community, e.g. Hewlett- Packard employees, so that RMI becomes a preferred point of contact for the most capable entrepreneurs/pre-entrepreneurs. The Innosphere’s capabilities should also be marketed in other start-up dense geographies, where the RMI/Fort Collins offering may be attractive, in order to attract high-potential companies. A significant investment in RMI resources, particularly in the form of human capital, will be required to “polish” deals and prepare them to receive investment. RMI should enhance mentorship, “interim executive” capabilities, and extend the SAGE program. The Innosphere should also broaden and deepen its areas of expertise by developing a formal advisor/mentor network that draws from across Colorado. RMI should also consider partnering with a mentoring organization such as MIT’s Venture Mentoring Service to help establish this network and define the engagement and activities of its members. Because executive leadership is critical for early-stage success, RMI should also identify individuals with the management talent and desire to act as “interim” executives in the top RMI deals (many of these people may be members of the advisor/mentor network.) The incubator could also consider partnering with existing “retired executive” groups if they exist in Colorado, and/or with a technology start-up focused executive search firm, to identify prospective individuals to serve in these roles. The Innosphere’s value proposition to mentors, advisors, and executives could be: “RMI is a source of high quality deals through which you can give back to the community while also exploring potential options for future engagement.” CSU’s capabilities could also be leveraged for the benefit of RMI companies. RMI could develop formal partnerships with the business school and other relevant programs (e.g., engineering, communications, advertising) for students to provide services to RMI companies. RMI could offer students the unique opportunity to work with real start-ups, earn class credit, and/or receive compensation. Students could also be engaged with the Innosphere through class projects, internships (at RMI and within RMI companies). RMI could also partner with the alumni office to identify CSU alumni with skills and capabilities relevant to RMI companies, and invite those alumni to participate. RMI member companies would also benefit from access to the CSU libraries and other facilities. RMI should over-invest in preparing teams to pitch for funding. The staff should work with teams to ensure high quality, iterated documents. Pitches should be rehearsed with a “funding committee,” a small group of local angel investors and locally successful entrepreneurs who can listen to practice pitches and provide targeted coaching. RMI should also identify “friendly” investors in Colorado who would be willing to provide similar feedback via high-quality video conference. When teams are prepared to pitch, RMI should aggressively market those deals to capital. Pre-venture capital in the form of SBIR funding (and other sources of non-dilutive funding) was highlighted as a critical funding gap in many interviews. SBIR funding could be operationalized and potentially funded as a partnership between the City, CSU, and RMI. The goal of the incubator should be to lower the transactions cost of pursuing angel funding for member companies. In this spirit, the Innosphere should take steps to revitalize and/or build a replacement for the NoCo Angels, drawing on best practices from the Angel Capital Association. RMI could also Partner with CSU to form a “CSU Angel Network” of CSU alumni interested in funding deals connected to CSU (typically, either based on CSU technology or founded by CSU students or alumni). Several other universities, including Texas A&M and Baylor, have established such “alumni investor” networks. RMI could also work closely with CSU Management Corporation as a prospective source of funding and expertise. ATTACHMENT 1 DRAFT – City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 133 APPENDICES Anecdotes and comparative statistics suggest that Fort Collins appears to be “off the radar” for many early stage investors. Targeted marketing to early stage investors outside of the community in order to raise awareness of the opportunities that Fort Collins may present, could include peer-to-peer interactions between Fort Collins angels/executives and Boulder and Denver-based investors. Fort Collins could also partner with other communities in Colorado to host venture expos, tours, and/or other programs designed to attract out of state investors to Colorado. The Innosphere should market RMI deals to investors outside of Fort Collins by developing personal relationships with partners in investment firms in Denver and Boulder, explaining what RMI is doing, and sharing notable successes. It will be important to understand the firms’ investment philosophies, sector foci, and funding parameters. The staff should build a detailed picture of what kind of deal each partner/firm wants to see before attempting to establish a relationship; treat these investors as “customers” that RMI is serving with “products” that are RMI companies. The Innosphere should also engage in “retail level” marketing of RMI’s very best deals to the investors to whom the deal should be most attractive. It is important to ask investors to help provide feedback on deals that are “early” for the investor, but which might be ready in 6-12 months. Innosphere staff should accompany (well- rehearsed) teams to pitches, and ensure that they act on any investor feedback. The staff should also develop a small network of institutions aligned with RMI’s mission who have strong investor networks of their own, and leverage those relationships for selective deals. Examples of “aligned institutions” include: NREL, ATI, Surge Accelerator. RMI should also engage in light touch “wholesale” marketing to communicate RMI’s new value proposition to the investor community. An aggressive, on-going public relations campaign will be an important component of engaging investors outside of the community. Fort Collins and RMI should ensure that “home-grown” successes receive more aggressive national coverage in media consumed by the investor community. A public relations campaign will benefit the entrepreneurs whose stories are celebrated and the start-up community more broadly. The “Fort Collins brand” will continue to be associated with innovation successes and RMI in particular will gain visibility as a high-impact incubator. ATTACHMENT 1 Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: May 13, 2011 TO: Mayor and City Council members THROUGH: Darin Atteberry, City Manager FROM: Mike Freeman, Chief Financial Officer Josh Birks, Economic Advisor RE: May 10, 2011 Work Session Summary – Economic Health Strategic Plan Update This memorandum provides a summary of the discussion relating to the Economic Health Strategic Plan Update, which occurred at the City Council Work Session on May 10, 2011. Attendance: Mayor Weitkunat; Council Members – Ohlson, Poppaw, Horak, Troxell, Manvel; Staff – Darin Atteberry, Mike Freeman, Josh Birks, and consultants John Roberts, TIP Strategies and Isaac Barchas, Austin Technology Incubator Presentation Overview  Staff presented an overview of the Economic Health Strategic Plan Update project, funded with $150,000 from the Keep Fort Collins Great tax revenues  A brief overview of the history leading to this project and review of the previous Economic Action Plan was provided by staff  The consultant team introduced their project team and reviewed the outline scope of work, including the proposed public engagement process Council Comments  Please expand the stakeholder list to include key members of the broader community: early childhood education representatives, workforce representatives, arts and culture representatives, environmental representatives, small business representatives, governmental employment representatives (e.g. State and Federal agencies and institutions)  The definition of economic health needs to be clear throughout the project with clear metrics. The definition should consider the inclusion of poverty rates, unemployment rates, homelessness rates, per capita income, and an industry diversity index. The clear definition should be used to form a baseline for use moving forward.  An outcome of the process should be clear metrics with targets. These can be used by City Council to help determine policy relative to various economic health activities.  Please consider the use of a working group that meets more frequently than monthly to assist the process moving forward. ATTACHMENT 2 ATTACHMENT 3 Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: December 19, 2011 TO: Mayor, and City Councilmembers THROUGH: Darin Atteberry, City Manager FROM: Mike Freeman, Chief Financial Officer; and Josh Birks, Economic Advisor RE: DECEMBER 13, 2011 - WORK SESSION SUMMARY: ECONOMIC HEALTH STRATEGIC PLAN UPDATE (AGENDA ITEM 4) This memorandum provides a summary of City Councilmember feedback related to the Economic Health Strategic Plan Update item presented at Work Session on December 13, 2011. City staff and consultants from TIP Strategies presented an initial draft of the Economic Health Strategic Plan. Councilmember Feedback:  The plan is disappointing, misses the mark, emphasizes a growth approach, and does not reflect the values of our community.  A recent New York Times article regarding the recent Plan Fort Collins update called out our community’s ability to reinvent ourselves for the future; this plan picks up that theme well and should be commended.  Working for coordination and collaboration amongst community partners is a good approach; however, there will not be a single Economic Health vision that emerges.  Formal partnerships (i.e. providing funding) with potential community partners are appropriate as long as the partner entity agrees to remain a-political.  The plan should take credit for all the great assets of the community, e.g. Park, Trail, Open Space, and Natural Areas.  The City can and should be a leader on Economic Health and play the roles of convener, catalyst, educator, reporter, and partner.  Cities of the future will be more sustainable. The plan needs to recognize this fact and better integrate that into the mission, objectives, and strategies.  The emphasis on small business should be elevated in the plan.  Keep it consistent with community values.  New model conference center is a dynamite idea.  The vision statement needs to reflect the existing vision statement better.  The plan is not ready for adoption. ATTACHMENT 4 Unanswered Questions:  An emphasis on talent is good; however, what is the appropriate role of the City in this arena?  How does the Rocky Mountain Innosphere fit into the plan? Next Steps:  The Economic Health Office will bring back a second draft of the Strategic Plan in February to a City Council work session, including: o An implementation matrix that provides roles, responsibility, and funding requirements by action item; and o Performance metrics tied to each of the key objectives.  Prior to this additional works session, EHO staff will perform the following outreach: o A public open house to gain input from citizens and other interested parties not included in the original stakeholder list; o Additional input from the Economic Advisory Commission; and o Input from all potential community partners (e.g. Small Business Development Center, Workforce Center, etc.) ATTACHMENT 5 1 Economic Health Strategic Plan Version 2.3 Presented to: City Council Work Session, March 27, 2012 Presented by: Josh Birks, Economic Health Director 2 Outline • This Presentation – Context/Overview – Plan Framework & Objectives – Implementation Strategy Options – Performance Measures Overview • Consultant Presentation at Work Session – Changes since December – Implementation Strategy Recommendation 3 Context/Overview • Strengths/Opportunities – Colorado State University – Innovation Infrastructure – Educated Workforce (Underemployment) • Weaknesses/Threats – Economic Cycles – Skills Mismatch (Underemployment) – Fiscal Sustainability – Economic Diversity 4 Framework: Guiding Principles A Healthy, Resilient Economy – Preserve Fort Collins’ unique quality of place and culture – Create more and better economic opportunity for residents – Diversify the tax base to help insulate Fort Collins from economic shocks 5 Framework: Vision Pioneering a healthy economy through quality of place, innovation and stewardship. The vision should be the unifying thread / theme across the principle projects, collaboration, research, and city policies geared toward promoting economic health in Fort Collins. 6 Framework: Objectives 1. Facilitate a stronger support network for existing employers, new businesses and small business. 2. Enhance the innovation ecosystem that supports companies at all stages and aligns with City goals. 3. Develop an integrated education system that anticipates and reacts to current and future employers’ needs. 4. Continue to invest in high quality assets and infrastructure that reflects the values of the community. 7 Objective # 1 – Support Existing Business • Enhance Fort Collins’ Business Retention and Expansion (BRE) program – Expand visitation program (VIP trips) – Expand reach of BRE survey – Establish Industry Councils (Manuf., Health, Tech.) • Create stronger connections between components of small business support system – Support Small Business Development Center for enhanced Fort Collins service – Understand/Fill service gaps – Refocus Shop Fort Collins First 8 Objective # 2 – Innovation Ecosystem • Rocky Mountain Innosphere as nexus for innovation – Enhance the triple-helix approach – integrate non-profits – Enhance support of target industries (Emerging, Growth, Existing) – Focus incubation services on capital access – Strengthen ties to other innovation ecosystems • Retain, develop, and attract entrepreneurs/cutting-edge companies – Foster entrepreneurial culture – Build a robust capital network – Proactively seek companies that add to clusters – Raise awareness of Fort Collins’ innovation ecosystem – Ensure adequate space for start-up companies to grow 9 Objective # 3 – Integrated Education System • Through the Workforce Investment Board convene employers and education institutions to identify and fill skills gaps in the existing workforce • Promote opportunities for leadership training, development, and networking • Strengthen the innovation and entrepreneurial talent pipeline. • Use tourism, visitation, and alumni network as a talent/business outreach strategy 10 Objective # 4 – Assets & Infrastructure • Downtown Convention Center (New Model) • Ensure adequate space for company expansions – Innovation Park (Incubation Grads) • Mason Corridor • Targeted Infill & Redevelopment • Early Childhood Education • Arts and culture 11 Implementation Options • City builds capacity in-house. • City decides not to support some recommendations. • City leverages relationships with partners to implement at a community-wide level. – STRONG STAFF RECOMMENDATION 12 STAFF RECOMMENDATION 13 Performance Measures Community Partners  Leverage of City’s investment  Jobs Created  Average wages of jobs assisted/created Industry Clusters Industry Clusters  Leverage of City’s Investment  Growth in Industry Cluster Jobs  Establishments  Patents  Capital Investment Business Assistance  Leverage  Jobs Assisted/Created  Average wages of jobs assisted/created  Tax base implications Development Assistance  Leverage  Square Feet of Development  Housing Units  Tax Base Implications Communications  Awareness Outcomes from Community Survey  Media Hits Innovate & Entrepreneurship  Tech Commercialization  New Business Formation  Capital Access  Wealth Creation Retention & Expansion  Companies Assisted & Retained  Jobs Assisted/Created  Average wages of jobs assisted/created  Dollars invested  Companies lost Talent Management  Community Survey Results  Job Placement Quality of Place  Investment in Redevelopment Areas  Amount of development in redevelopment areas  Leverage of City’s investment Creating Economic Opportunity  Job Growth  Wage Growth  Underemployment Diversify the Tax Base  Growth of commercial tax base  Growth of retail sales  Private industry’s share of jobs Community Strategic Operational 3% ATTACHMENT 1 Architecture & engineering Installation, maintenance, & repair Science Farming, fishing, & forestry Food preparation & serving Legal Military Property maintenance Protective service Community & social services Arts, design, & media Computer & mathematical science Healthcare (support) Education, training, & library Office & administrative support Personal care & service Sales Management Healthcare (technical) Business & financial operations 2007 2008 2009 2010 ATTACHMENT 1 Retail trade 453220 Gift, Novelty, and Souvenir Stores 1.55 487 $15,003 67 -184 Construction 238911 Residential site preparation contractors 1.53 420 $25,965 43 -81 Information & media 518210 Data Processing, Hosting, and Related Services 1.52 526 $40,529 17 +334 Finance & insurance 522292 Real Estate Credit 1.41 403 $61,713 17 +252 Property sales & leasing 531390 Other Activities Related to Real Estate 1.38 1,792 $11,884 10 +686 Professional & technical services 541690 Other Scientific and Technical Consulting Services 1.35 471 $39,855 54 +277 Personal & other services 811490 Other Personal and Household Goods Repair and Maintenance 1.32 418 $20,464 14 +27 Manufacturing 334119 Other Computer Peripheral Equipment Manufacturing* 1.32 55 n/a n/a -3,292 Restaurants, bars, & hotels 722410 Drinking Places (Alcoholic Beverages) 1.30 585 $15,319 44 -170 Restaurants, bars, & hotels 722110 Full-Service Restaurants 1.29 6,423 $15,442 243 +579 Property sales & leasing 531210 Offices of Real Estate Agents and Brokers 1.29 2,942 $11,746 187 +888 Transportation & warehousing 493110 General Warehousing and Storage 1.28 855 $35,211 8 -117 Professional & technical services 541219 Other Accounting Services 1.27 761 $16,874 72 +174 Restaurants, bars, & hotels 721110 Hotels (except Casino Hotels) and Motels 1.26 2,029 $20,756 88 +293 Restaurants, bars, & hotels 722213 Snack and Nonalcoholic Beverage Bars 1.26 672 $11,928 67 +68 Administrative services 561730 Landscaping Services 1.25 1,477 $21,203 148 +352 Professional & technical services 541511 Custom Computer Programming Services 1.25 1,132 $69,565 158 +357 Construction 236220 Commercial and Institutional Building Construction 1.25 833 $60,252 71 -137 Professional & technical services 541512 Computer Systems Design Services 1.24 1,137 $59,985 199 +346 Healthcare & social assistance 623312 Homes for the Elderly 1.24 518 $18,622 22 +157 Personal & other services 812112 Beauty Salons 1.23 867 $24,486 89 +233 Retail trade 443112 Radio, Television, and Other Electronics Stores 1.22 452 $26,357 33 +49 Construction 238221 Residential plumbing and HVAC contractors 1.17 619 $36,957 126 -470 Healthcare & social assistance 621340 Offices of Physical, Occupational and Speech Therapists, and Audiologists 1.16 475 $27,706 45 +218 Finance & insurance 523930 Investment Advice 1.14 1,289 $17,190 38 +689 Retail trade 444110 Home Centers 1.12 778 $27,132 10 +175 Healthcare & social assistance 621210 Offices of Dentists 1.11 1,073 $42,506 173 +252 Finance & insurance 523920 Portfolio Management 1.11 1,053 $26,232 14 +595 Restaurants, bars, & hotels 722211 Limited-Service Restaurants 1.08 4,150 $12,175 238 +755 Property sales & leasing 531110 Lessors of Residential Buildings and Dw ellings 1.06 1,460 $20,950 57 +108 Finance & insurance 523120 Securities Brokerage 1.06 531 $69,599 54 +186 Construction 236118 Residential Remodelers 1.05 608 $52,797 104 +147 Personal & other services 811111 General Automotive Repair 1.05 514 $36,012 83 +36 Construction 238912 Nonresidential site preparation contractors 1.04 459 $31,109 19 -71 Personal & other services 812990 All Other Personal Services 1.03 499 $28,472 16 +42 Healthcare & social assistance 621111 Offices of Physicians (except Mental Health Specialists) 1.02 2,795 $70,454 161 +633 Finance & insurance 524210 Insurance Agencies and Brokerages 1.01 1,252 $30,444 160 +266 Professional & technical services 541611 Administrative Management and General Management Consulting Services 1.00 850 $35,232 101 +431 Retail trade 441110 New Car Dealers 0.98 959 $46,539 12 -110 Construction 236115 New Single-Family Housing Construction (except Operative Builders) 0.97 573 $57,065 129 -910 Finance & insurance 522110 Commercial Banking 0.96 1,388 $45,516 91 +231 Healthcare & social assistance 624120 Services for the Elderly and Persons w ith Disabilities 0.96 781 $17,957 17 +457 Administrative services 561720 Janitorial Services 0.94 1,867 $9,982 87 +249 NAICS Classification Level in 2010 Locaton quotitent descriptions: extremely high (> 3.00) above average (>1.25) average (between 0.75 and 1.25) below average (<0.75) Net Chg Since 2001 Broad sector 3-digit code & description LQ Jobs Avg. Earnings No. of Estabs. Net Job Gain (Loss) Manufacturing 312120 Breweries 32.65 921 $71,574 5 +265 Manufacturing 333618 Other Engine Equipment Manufacturing 27.68 1,208 $61,184 2 +307 Manufacturing 334516 Analytical Laboratory Instrument Manufacturing 20.88 721 $66,132 5 +175 Manufacturing 334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 15.26 702 $137,805 10 -1,924 Manufacturing 334111 Electronic Computer Manufacturing 9.52 938 n/a n/a -409 Manufacturing 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing 9.10 494 $82,852 5 -497 Construction 238122 Nonresidential structural steel and precast concrete contractors 7.65 554 $53,801 8 +201 Administrative services 561422 Telemarketing Bureaus and Other Contact Centers 4.42 1,919 $19,755 17 +1,811 Information & media 511120 Periodical Publishers 4.01 712 $45,177 21 -17 Professional & technical services 541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) 3.50 1,752 $121,444 32 +1,488 Professional & technical services 541620 Environmental Consulting Services 2.76 406 $44,241 50 +141 Healthcare & social assistance 622310 Specialty (except Psychiatric and Substance Abuse) Hospitals 2.64 580 $80,892 1 +580 Property sales & leasing 531190 Lessors of Other Real Estate Property 2.63 575 $41,696 18 +168 Finance & insurance 523910 Miscellaneous Intermediation 2.51 1,007 $24,464 16 +746 Healthcare & social assistance 621399 Offices of All Other Miscellaneous Health Practitioners 2.49 851 $22,151 58 +417 Manufacturing 334413 Semiconductor and Related Device Manufacturing 2.42 481 $91,981 5 +188 Professional & technical services 541940 Veterinary Services 2.38 830 $25,925 75 +156 Property sales & leasing 531130 Lessors of Miniw arehouses and Self-Storage Units 2.34 870 $28,001 23 +446 Construction 238312 Nonresidential drywall contractors 2.18 464 $38,175 9 -70 Retail trade 451110 Sporting Goods Stores 2.09 635 $17,687 62 +56 Government (incl. public ed.) 920000 State government 2.01 11,613 $38,864 21 +438 Professional & technical services 541330 Engineering Services 1.86 2,017 $61,728 202 +28 Arts, entertainment, & recreation 713990 All Other Amusement and Recreation Industries 1.85 481 $13,836 35 +15 Construction 238321 Residential painting contractors 1.81 522 $20,714 68 -70 Retail trade 453310 Used Merchandise Stores 1.81 499 $14,936 26 +114 Construction 238991 All other residential trade contractors 1.80 579 $16,943 45 -1 Retail trade 452910 Warehouse Clubs and Supercenters 1.76 2,206 $22,523 7 +1,639 Retail trade 454390 Other Direct Selling Establishments 1.76 2,042 $5,616 23 +195 Construction 238222 Nonresidential plumbing and HVAC contractors 1.76 1,008 $53,251 36 +70 Professional & technical services 541990 All Other Professional, Scientific, and Technical Services 1.74 2,055 $32,411 90 -422 Administrative services 561990 All Other Support Services 1.69 511 $45,357 39 -245 Property sales & leasing 531311 Residential Property Managers 1.67 1,037 $17,811 69 +440 Property sales & leasing 531120 Lessors of Nonresidential Buildings (except Miniw arehouses) 1.65 1,192 $30,894 32 +431 Arts, entertainment, & recreation 711510 Independent Artists, Writers, and Performers 1.63 1,928 $13,029 47 +347 Oil, gas, & mining 211111 Crude Petroleum and Natural Gas Extraction 1.63 1,370 $60,141 10 +840 Arts, entertainment, & recreation 713940 Fitness and Recreational Sports Centers 1.59 1,158 $9,420 44 +444 Retail trade 453220 Gift, Novelty, and Souvenir Stores 1.55 487 $15,003 67 -184 Construction 238911 Residential site preparation contractors 1.53 420 $25,965 43 -81 Information & media 518210 Data Processing, Hosting, and Related Services 1.52 526 $40,529 17 +334 Finance & insurance 522292 Real Estate Credit 1.41 403 $61,713 17 +252 Property sales & leasing 531390 Other Activities Related to Real Estate 1.38 1,792 $11,884 10 +686 Professional & technical services 541690 Other Scientific and Technical Consulting Services 1.35 471 $39,855 54 +277 Personal & other services 811490 Other Personal and Household Goods Repair and Maintenance 1.32 418 $20,464 14 +27 Manufacturing 334119 Other Computer Peripheral Equipment Manufacturing* 1.32 55 n/a n/a -3,292 Restaurants, bars, & hotels 722410 Drinking Places (Alcoholic Beverages) 1.30 585 $15,319 44 -170 Restaurants, bars, & hotels 722110 Full-Service Restaurants 1.29 6,423 $15,442 243 +579 Property sales & leasing 531210 Offices of Real Estate Agents and Brokers 1.29 2,942 $11,746 187 +888 Transportation & warehousing 493110 General Warehousing and Storage 1.28 855 $35,211 8 -117 Professional & technical services 541219 Other Accounting Services 1.27 761 $16,874 72 +174 Restaurants, bars, & hotels 721110 Hotels (except Casino Hotels) and Motels 1.26 2,029 $20,756 88 +293 Restaurants, bars, & hotels 722213 Snack and Nonalcoholic Beverage Bars 1.26 672 $11,928 67 +68 Administrative services 561730 Landscaping Services 1.25 1,477 $21,203 148 +352 Professional & technical services 541511 Custom Computer Programming Services 1.25 1,132 $69,565 158 +357 Construction 236220 Commercial and Institutional Building Construction 1.25 833 $60,252 71 -137 Professional & technical services 541512 Computer Systems Design Services 1.24 1,137 $59,985 199 +346 Healthcare & social assistance 623312 Homes for the Elderly 1.24 518 $18,622 22 +157 Personal & other services 812112 Beauty Salons 1.23 867 $24,486 89 +233 Retail trade 443112 Radio, Television, and Other Electronics Stores 1.22 452 $26,357 33 +49 Construction 238221 Residential plumbing and HVAC contractors 1.17 619 $36,957 126 -470 Healthcare & social assistance 621340 Offices of Physical, Occupational and Speech Therapists, and Audiologists 1.16 475 $27,706 45 +218 Finance & insurance 523930 Investment Advice 1.14 1,289 $17,190 38 +689 Retail trade 444110 Home Centers 1.12 778 $27,132 10 +175 Healthcare & social assistance 621210 Offices of Dentists 1.11 1,073 $42,506 173 +252 Finance & insurance 523920 Portfolio Management 1.11 1,053 $26,232 14 +595 Restaurants, bars, & hotels 722211 Limited-Service Restaurants 1.08 4,150 $12,175 238 +755 Property sales & leasing 531110 Lessors of Residential Buildings and Dw ellings 1.06 1,460 $20,950 57 +108 Finance & insurance 523120 Securities Brokerage 1.06 531 $69,599 54 +186 Construction 236118 Residential Remodelers 1.05 608 $52,797 104 +147 Personal & other services 811111 General Automotive Repair 1.05 514 $36,012 83 +36 Construction 238912 Nonresidential site preparation contractors 1.04 459 $31,109 19 -71 Personal & other services 812990 All Other Personal Services 1.03 499 $28,472 16 +42 Healthcare & social assistance 621111 Offices of Physicians (except Mental Health Specialists) 1.02 2,795 $70,454 161 +633 Finance & insurance 524210 Insurance Agencies and Brokerages 1.01 1,252 $30,444 160 +266 Professional & technical services 541611 Administrative Management and General Management Consulting Services 1.00 850 $35,232 101 +431 Retail trade 441110 New Car Dealers 0.98 959 $46,539 12 -110 Construction 236115 New Single-Family Housing Construction (except Operative Builders) 0.97 573 $57,065 129 -910 Finance & insurance 522110 Commercial Banking 0.96 1,388 $45,516 91 +231 Healthcare & social assistance 624120 Services for the Elderly and Persons w ith Disabilities 0.96 781 $17,957 17 +457 Administrative services 561720 Janitorial Services 0.94 1,867 $9,982 87 +249 NAICS Classification Level in 2010 ATTACHMENT 1 $1,620 $1,495 $1,243 $1,355 $1,215 $1,171 $1,204 19.6% -20.3% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% Cumulative annual growth rates of the city's population, 2001-2010 Cumulative annual growth rates of the city's outstanding debt on a per- resident basis, 2001-2010 ATTACHMENT 1 $2.25 $2.24 $2.13 $2.19 $15,151 $15,925 $15,475 $15,323 $15,403 $15,656 $15,228 $16,338 $16,355 $15,963 $14,897 19.6% 1.1% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Cumulative annual growth rates of the city's population, 2001-2010 Cumulative annual growth rates of the city's sales & use tax base on a per- resident basis, 2001-2010 ATTACHMENT 1 $10.97 $11.33 $12.23 $93,078 $98,949 $99,306 $100,429 $100,845 0% 10% 20% 30% 40% 50% 60% Cumulative annual growth rates of the city's population, 2001- 2010 Cumulative annual growth rates of the city's sales & use tax base on a per- resident basis, 2001-2010 ATTACHMENT 1 These residents pursue an active, urbane lifestyle. They travel frequently for business and pleasure. They listen to jazz, classical, public, and alternative music radio. They go to rock concerts, watch foreign films on DVD, read women’s fashion magazines, and play a musical instrument. They also practice yoga and go kayaking, hiking/backpacking, and water and snow skiing. Active members of their communities, Metropolitans residents join civic clubs, volunteer for environmental causes, address public meetings, and work for a political party or candidate. They also belong to business clubs and contribute to PBS. They prefer to own and use a laptop computer, preferably an Apple. They go online daily to download music and buy books, airline tickets, CDs, and clothes. They also order merchandise by mail or over the phone. Note: ESRI defines the US population into 65 market or "tapestry" segments. According to ESRI, these are the three segments that most closely fit Fort Collins residents (text verbatim from ESRI). Source: ESRI. ATTACHMENT 1 eclectic mix of single-family homes and multiunit buildings. Sixty percent of the housing units were built before 1960. The home ownership rate is 60 percent, and the median home value is $192,372. ATTACHMENT 1 margin is slim compared to other age groups. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009. ATTACHMENT 1 residents a year on a net basis.exceeds the number of jobs in the city by more than 2,000. Source : US Internal Revenue Service, county-to-county migration flows; Moodys Analytics. ATTACHMENT 1 US averages. Note: "Family origins" is calculated from Census tabulations across multiple categories, including ancestry, race, & ethnicity; "Military service" is calculated on the population age 18 or older. Source: U.S. Census Bureau (American Community Survey, 2005-2009 average). ATTACHMENT 1 disparities progressive utilities limited state incentives influence on how key sites marketed healthcare system & PVHS strong K-12 economic health toolbox economic diversification skills mismatch Fort ZED state / region national / international local sluggish growth in US economy, high unemployment lack of available high quality office space US is a low-risk, high-transparency investment destination commercial growth going to surrounding communities aging commercial corridors in the shadow of Boulder access to capital innovation infrastructure CSU retention of incubator graduates Old Town federal deficit & downward pressure on ED and R&D funding higher education funding investment in alternative energy environmental stewardship support for independent business & arts align tourism & ED support for emerging clusters Front Range CC SWOT TIP conducted an economic development SWOT analysis (strengths, weaknesses, opportunities, and threats) for the City of Fort Collins, based on a review of economic, demographic, and workforce characteristics, interviews with local and regional business and community leaders, and our experience working with communities and regions across the country. The graphic illustrates the results of the analysis conducted as part of the assessment. The size of the bubble is intended to convey the consulting team’s view of the relative importance of the topic, and in some cases, the likelihood of impact in the region. Items closer to the center of the graph tend to be more local in nature. Those at the outer corners are influenced by state, national, or global trends, placing them to some degree outside of local or regional control. ATTACHMENT 1 Source: US Patent Office, US Census, TIP Strategies calculations. ATTACHMENT 1 disparities progressive utilities limited state incentives influence on how key sites marketed healthcare system & PVHS strong K-12 economic health toolbox economic diversification skills mismatch Fort ZED state / region national / international local sluggish growth in US economy, high unemployment lack of available high quality office space US is a low-risk, high-transparency investment destination commercial growth going to surrounding communities aging commercial corridors in the shadow of Boulder access to capital innovation infrastructure CSU retention of incubator graduates Old Town federal deficit & downward pressure on ED and R&D funding higher education funding investment in alternative energy environmental stewardship support for independent business & arts align tourism & ED support for emerging clusters Front Range CC GRAPHIC: SWOT ANALYSIS The graphic summarizes the results of the analysis. The size of the bubble is intended to convey the consulting team’s view of the relative importance of the topic, and in some cases, the likelihood of impact in the region. Items closer to the center of the graph tend to be more local in nature. Those at the outer corners are influenced by state, national, or global trends, placing them to some degree outside of local or regional control. We have placed CSU, the largest bubble, at the center of the diagram. This reflects the large role that CSU plays in Fort Collins’ economic health. It also reflects the interconnectedness between the City and the University that extends far beyond economic health. The numerous bubbles in the orange quadrant reflect Fort Collins’ numerous other economic drivers. ATTACHMENT 1 ATTACHMENT 1 Development Assistance • Private Investment to Public Assistance • Square Feet of Development • Housing Units • Tax Base Implications Communications • Awareness Outcomes from Community Survey • Media Hits