Loading...
HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 08/13/2019 - COMPLETE AGENDACity of Fort Collins Page 1 Wade Troxell, Mayor Council Information Center (CIC) Kristin Stephens, District 4, Mayor Pro Tem City Hall West Susan Gutowsky, District 1 300 LaPorte Avenue Julie Pignataro, District 2 Fort Collins, Colorado Ken Summers, District 3 Ross Cunniff, District 5 Cablecast on FCTV Channel 14 Emily Gorgol, District 6 and Channel 881 on the Comcast cable system Carrie Daggett Darin Atteberry Delynn Coldiron City Attorney City Manager City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. City Council Work Session August 13, 2019 6:00 PM (amended 8/12/2019)  CALL TO ORDER. 1. President Joyce McConnell, Colorado State University. 2. Larimer County Proposed Regional Transportation and Facilities Tax for November 2019 Ballot. (staff: Chad Crager; 45 minute discussion) The purpose of this work session is a status update to Council on the proposed Larimer County regional transportation and County facility tax for the upcoming November 2019 ballot. 3. Results and recommendations from the Sports Complex Facility Feasibility Study completed by Hunden Strategic Partners. (staff: Wendy Williams, Bob Adams; 15 minute staff presentation; 30 minute discussion) The purpose of this item is to present the findings and recommendations of Hunden Strategic Partners, the consultant hired through a competitive RFP process to evaluate the economic impact and feasibility of a multi-use sports complex in Fort Collins. Rob Hunden, the consultant from Hunden Strategic Partners, will be giving part of the presentation along with the staff. City of Fort Collins Page 2 4. Economic Health Strategy Update. (staff: Jeff Mihelich, Josh Birks; 15 minute presentation; 45 minute discussion) The purpose of this item is to provide Council with an overview and update of the City's economic health strategy. In addition, the item will provide information about current activities led by the Economic Health Office that tie to Council's priorities:  Strategies that create community jobs  Small business plan Based on the information provided, Council will have an opportunity to discuss and refine the above priorities.  OTHER BUSINESS.  ADJOURNMENT. DATE: STAFF: August 13, 2019 Chad Crager, PDT Interim Deputy Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Larimer County Proposed Regional Transportation and Facilities Tax for November 2019 Ballot. EXECUTIVE SUMMARY The purpose of this work session is a status update to Council on the proposed Larimer County regional transportation and County facility tax for the upcoming November 2019 ballot. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED This is an opportunity for Council to provide feedback and ask questions directly of the Larimer County staff. 1. Is Council supportive, neutral, or opposed to the upcoming Larimer County regional tax initiative? BACKGROUND / DISCUSSION The City of Fort Collins has collaborated with Larimer County and other local agencies since early 2018 on a countywide project to develop regional transportation solutions. A list of projects was generated that would compete for funding as a result of the proposed Larimer County Regional Tax Initiative. There are 43 projects on the list from across the County and they were evaluated and prioritized based on five criteria:  Connectivity. Does the project complete a link between communities or between major corridors?  Multimodal. Would the project improve accommodation for multiple travel modes?  Congestion relief. Would the project address an existing congestion problem?  Safety mitigation. Would the project address a documented safety problem?  Project Reach. How wide-reaching is the project and how many people would be impacted by the project? COUNTY MODIFICATIONS City staff recognizes the need to work with regional partners to find solutions to transportation issues. While City staff had significant initial concerns about the structure of the proposed County Tax, in the last month the County has made changes to the proposed tax to address these concerns, including: (1) Flexibility of the project list. The project list now allows the County and the communities in advance and get reimbursement. Connectivity 25% Multimodal 15% Congestion Relief 25% Safety Mitigation 25% Project Reach 10% 100% Criteria Weighting August 13, 2019 Page 2 (2) Transit funding. The proposed County tax now includes 15% - 20% (approximately $150M - $200M over the life of tax) for regional transit funding. STAFF CONCERNS City staff has the remaining concerns: (1) Inequitable distribution of projects. It is projected that 52% of sales tax receipts from this proposal will be collected within the City of Fort Collins. Approximately 30% of the distribution would be within the city limits. Nearby projects have indirect benefit to Fort Collins, but do not make up the difference. (2) Flexibility to address changes in local and regional priorities. Although significant flexibility has been added to the process, new projects will need to be ranked against the original criteria only the highest ranked projects can be substituted. New types of innovative projects may not be eligible. (3) Most Fort Collins projects will receive funding beyond 2030. Due to the “cash only” nature of the proposed tax, project funding is determined by project ranking. Most Fort Collins projects won’t receive funding until 2030 or beyond. (4) Unknown transit distribution and eligibility. The County is working on the proposed transit distribution, but it has not been finalized. ATTACHMENTS 1. Regional Transportation Infrastructure Projects Map (PDF) ATTACHMENT 1 DATE: STAFF: August 13, 2019 Wendy Williams, Assistant City Manager Bob Adams, Recreation Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Results and recommendations from the Sports Complex Facility Feasibility Study completed by Hunden Strategic Partners. EXECUTIVE SUMMARY The purpose of this item is to present the findings and recommendations of Hunden Strategic Partners, the consultant hired through a competitive RFP process to evaluate the economic impact and feasibility of a multi-use sports complex in Fort Collins. Rob Hunden, the consultant from Hunden Strategic Partners, will be giving part of the presentation along with the staff. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What additional information, if any, does Council think would be helpful? 2. What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth 3. Does Council want to move forward with this project? 4. Should staff pursue opportunities for potential partnerships or donative relationships? BACKGROUND / DISCUSSION The 2017-2018 budget included funding for a Sports Complex Economic Impact and Feasibility study. The consultant was asked to answer the following questions: • What is the market opportunity for a new sports complex development in Fort Collins? • What is the existing supply of sports/recreation facility in Fort Collins and the surrounding area? What is the level of local demand for a new complex? • What are the existing state and regional supply of sports complexes that are capable of hosting large tournaments and events? Would a new facility in Fort Collins present opportunities to host larger tournaments? • How is the area hotel market performing? How does this impact the market opportunity for a new sports complex? • Based on the comprehensive market analysis, what are the conclusions and recommendations? • What are the possible scenarios and site options available for a new facility? Hunden Strategic Partners conducted a thorough study, providing staff with an executive summary of its findings and recommendations. (Attachment 1). A key element of the study process was to include a variety of City staff, along with community stakeholders, to ensure a diverse cross-section of interests were explored and represented in the report. Based on information provided from HSP, a few possible scenarios were presented for moving forward: 2 Packet Pg. 3 August 13, 2019 Page 2 • Option 1: Build a sports complex that is designed specifically to address the local needs of the community (in conjunction with the Parks and Recreation Policy Plan) • Option 2: Build a sports complex that is designed specifically to drive local sports tourism in Fort Collins (in conjunction with the Tourism Master Plan) • Option 3: Build a sports complex that focuses on both priorities – tourism and local need (in conjunction with both plans) • Option 4: Do not move forward with this project The summary findings of this report were presented to the Council Finance Committee and the Economic Advisory Commission. A Triple Bottom Line analysis was completed for the first two scenarios (Attachment 2). Financial staff reviewed and verified the budget numbers and highlighted additional considerations that would impact the overall project costs and ongoing maintenance, such as custodial costs and the costs associated with the City’s design and construction standards. ATTACHMENTS 1. Executive Summary from Hunden Strategic Partners (PDF) 2. Triple Bottom Line Scenarios (PDF) 3. Economic Advisory Commission Memo - July 24, 2019 (PDF) 4. Visit Fort Collins Letter of Support (PDF) 5. Powerpoint Presentation (PDF) 2 Packet Pg. 4 Fort Collins Sports Facility Market and Feasibility Analysis July 1 lysis 115 ysis 1155, sis s 55, 2019  ATTACHMENT 1 2 Executive Summary Executive Summary The Hunden Strategic Partners Team, including professionals at Perkins + Will, was engaged by the City of Fort Collins to conduct a comprehensive market, financial feasibility, and economic impact analysis for the development of a sports facility within the city limits. The key questions that HSP was tasked to answer were:  What is the market opportunity for a new indoor or outdoor sports complex development in Fort Collins?  What is the existing supply of sports and recreation facilities in Fort Collins and the surrounding area? Is there a gap in quality or size of facilities? What is the level of local demand for a new sports complex?  What is the existing state and greater regional supply of sports complexes capable of hosting impactful tournaments and events? Is there a gap in supply that a new Fort Collins facility could accommodate? What is the opportunity to host major state and regional tournaments?  How is the area hotel market performing? What does this mean for the market opportunity for a new sports complex?  Based on the comprehensive market analysis, what are the conclusions and recommendations? Should multiple scenarios be considered?  How is the recommended sports facility projected to perform? What is the expected economic, fiscal, and employment impact of such a development?  What are the site options for such a development? What are the pros and cons of the potential development sites? ATTACHMENT 1 3 Executive Summary Executive Summary Based on the comprehensive analysis of the market, the needs of tournaments and leagues, the projected development of competitive and recreation athletic facilities, and the overall market, HSP’s conclusions are targeted to meet Fort Collin’s mission to provide a state-of-the-art venue that can provide sports opportunities and economic impact for the local community and be a platform for regional and national events. The focus of the demand analysis was to narrow down the sports or facilities that would have the most potential for economic impact in the world of sports tournaments. In addition, HSP conducted an analysis of the supply of local and regional facilities for sports, as well as the demand for sports to determine if more facilities are needed to support local use and how the existing facilities may attract and accommodate potential tournaments. HSP met with key stakeholders, interviewed and surveyed existing and potential facility users, analyzed the competition, reviewed the regional tournament opportunity, analyzed the hotel market, investigated comparable situations and worked with the site option to fit an optimal development program. Many cities have used youth sports complexes as activity and demand generators to enhance their communities and overall development efforts. The activity of youth sports complexes (which are also used by adult tournaments) can generate intense usage, which provides hotel and restaurant activity, especially on weekends. The facility itself must be able to generate enough events on the calendar to keep it operating without significant financial support. Almost no sports complex can completely pay for itself, so the design and operating concept of any new facility should ensure that it can maximize revenues and minimize expenses by staying busy during the week with local rentals and on weekends with tournament activity. The goal is to integrate critical elements that will optimize a local athletic facility that also increases economic activity from beyond the local area ATTACHMENT 1 4 Drive Time Demographics Economic, Demographic, and Tourism Analysis The adjacent figure shows the drive-time demographics (one, two, and three hours) from Fort Collins. Due to Denver’s distance from surrounding metropolitan hubs, the majority of the tournament and event attendees will likely come from within this three-hour radius (population: 5.3 million) ATTACHMENT 1 5 Relevant Hotel Supply Hotel Market Analysis Fort Collins Hotel Supply Property Distance Rooms Chain Scale Open Autograph Collection The Elizabeth Hotel 0.1 164 Upper Upscale Dec-17 The Armstrong Hotel 0.2 45 Indep Jun-28 Best Western University Inn 0.8 70 Midscale Jun-61 El Palomino Motel 1.2 36 Indep Jun-43 Hilton Fort Collins 1.4 256 Upper Upscale May-85 Budget Host Fort Collins 1.5 30 Economy Jun-74 Best Western Kiva Inn 1.6 62 Midscale Feb-82 Americas Best Value Inn Fort Collins 1.7 40 Economy Aug-61 Marriott Fort Collins 3.3 229 Upper Upscale Jun-85 Days Inn Fort Collins 3.5 77 Economy Jun-81 Motel 9 3.5 35 Indep Jun-88 Super 8 Fort Collins 3.6 69 Economy Jun-85 La Quinta Inns & Suites Fort Collins 3.6 135 Midscale Jun-72 Baymont Inn & Suites Fort Collins 3.6 62 Midscale Jul-95 Quality Inn & Suites I 25 North Fort Collins 3.7 87 Midscale Dec-14 Clarion Inn Fort Collins 3.7 110 Upper Midscale Nov-65 Quality Inn & Suites University Fort Collins 3.7 66 Midscale Jun-97 Motel 6 Fort Collins 3.8 127 Economy Sep-78 Comfort Inn Fort Collins North 3.8 62 Upper Midscale Nov-00 Americas Best Value Inn & Suites Ft Collins E at I 25 4.1 120 Economy Jun-85 Candlewood Suites Fort Collins 4.1 83 Midscale Dec-14 Courtyard Fort Collins 4.5 112 Upscale Mar-96 Holiday Inn Express & Suites Fort Collins 4.6 89 Upper Midscale Oct-05 Comfort Suites Fort Collins 4.6 66 Upper Midscale Jul-98 Homewood Suites by Hilton Fort Collins 4.6 99 Upscale May-07 Hampton Inn Fort Collins 4.6 75 Upper Midscale Oct-96 Residence Inn Fort Collins 4.6 113 Upscale Jul-99 Home2 Suites by Hilton Fort Collins 4.9 108 Upper Midscale Apr-18 Hilton Garden Inn Fort Collins 5.2 120 Upscale Sep-07 Cambria hotel & suites Fort Collins 5.3 90 Upscale Sep-08 Fairfield Inn & Suites Fort Collins South 5.6 106 Upper Midscale Nov-18 AmericInn Lodge & Suites Fort Collins South 8.8 61 Midscale Nov-00 Total/Days Inn Average Wellington Fort Collins Area 3.8.72 8 3,93 097 Economy -- Jun-Jun-04 90 Source: Smith Travel Research The adjacent table details the supply of hotel options in the city. Approximately 3,100 rooms among 33 hotels are currently offered in Fort Collins. ATTACHMENT 1 6 Lodging Summary Hotel Market Analysis As detailed in the lodging summary table above, the existing hotel supply is fairly evenly distributed among chain scales, providing different price points and quality levels for potential visitors. ATTACHMENT 1 7 Map Hotel Market Analysis The adjacent figure shows the location of and chain scales of the competitive hotel set. Tournaments and groups for sports typically prefer lower-cost, branded hotels with built-in breakfast, such as Hampton Inn, Fairfield, Hyatt Place, etc. Due to cost and efficiency, they tend to avoid full-service hotels. The majority of the preferred branded, select service hotels are located 4.5 miles south of downtown Fort Collins. ATTACHMENT 1 8 Local Athletic Supply - Outdoor Local Sports Supply Analysis The adjacent table details the existing local athletic outdoor athletic supply in Fort Collins. Currently, Fort Collins Soccer Complex and Rolland Moore Park are the only venues large enough to accommodate tournaments and events. However, the Fort Collins Soccer Complex is limited by availability, lack of lights, and support infrastructure, while Rolland Moore suffers from a lack of support amenities required to accommodate events. As shown, the market offers collection of 2-plex diamonds, but those facilities not large enough to host tournaments that generate impact and visitation. Fort Collins area clubs are leaving the city and traveling to Loveland and Greeley for weekend tournaments throughout the summer months. Local Outdoor Athletic Complex Supply Venue Location Outdoor Multipurpose Multipurpose Turf Fields Outdoor Baseball/Softball Basketball Tennis Sand Volleyball Other City Par Fort Collins -- -- 2 -- -- -- Baseball field with bleachers and ad acent softball field Edora Par Fort Collins -- -- 2 -- 6 -- Fort Collins Soccer Complex Fort Collins 11 -- -- -- -- -- Field arrangement and uantity can vary Fossil Cree Par Fort Collins -- -- 2 2 5 -- Greenbriar Par Fort Collins -- -- 2 -- -- -- Martinez Par Fort Collins -- -- 2 3 4 -- Rolland Moore Par Fort Collins -- -- 4 5 8 2 Temporary multipurpose fields can be created in the outfield Spring Canyon Par Fort Collins -- -- 2 3 3 2 Spring Par Fort Collins -- 2 -- -- -- Troutman Par Fort Collins 4 -- -- 1 2 -- Twin Silo Par Fort Collins -- -- 2 -- 4 -- Warren Par Fort Collins 2 -- 1 1 4 1 Barnes Par Loveland -- -- 10 -- -- -- Batting cages Centennial Baseball Complex Loveland -- -- 6 -- 4 -- Loveland Sports Par Loveland 8 1 -- 2 -- 2 One turf championship field Diamond Valley Sports Complex Windsor -- -- 3 -- -- -- Source: Various Sources ATTACHMENT 1 9 Local Athletic Supply The adjacent map shows the location of relevant outdoor athletic complexes in the Fort Collins market. Local Sports Supply Analysis ATTACHMENT 1 10 Local Athletic Supply The adjacent table details the existing supply of indoor sports complexes in Fort Collins. Power to Play, the premier event-oriented indoor complex in the entire Denver market, is focused on attracting and producing basketball tournaments, but HSP understands that they are beginning to penetrate the volleyball tournament market. The two indoor synthetic turf facilities, Edge Sports Center and Arena Sports, both have uncertain futures, presenting potential opportunity for indoor turf in any new development. As shown, only one facility in Fort Collins area offers more than two basketball courts in one location, indicating a major supply gap. ele ant Local ndoor Athletic Complex Supply Venue Location ndoor Synthetic Turf Basketball Volleyball ndoor Tennis ool ce Other The Edge Sports Center Fort Collins 1 -- -- -- -- -- Batting cages Endora Pool Ice Center EPIC Fort Collins -- -- -- -- 1 2 10-lane 50m pool seating for 1 000 Mulberry Pool Fort Collins -- -- -- -- 1 -- 6-lane 25-yard NoCo Ice Center Fort Collins -- -- -- -- -- 1 Northside Aztlan Community Center Fort Collins -- 3 3 -- -- -- Weight room Fort Collins Senior Center Fort Collins -- 1 1 -- 1 -- 4-lane 25-yard Budweiser Events Center Loveland -- 1 1 -- -- 1 7 200-seat arena Arena Sports LLC Windsor 1 -- 3 -- -- -- Norco Volleyball Club Windsor -- -- 6 -- -- -- Power 2 Play Sports Events Center Windsor -- 6 6 -- -- -- Concession and lounge area between courts Uncertain future Source: Various Sources Local Sports Supply Analysis ATTACHMENT 1 11 Local Athletic Supply The adjacent map shows the location of relevant indoor athletic complexes in the Fort Collins market. Local Sports Supply Analysis ATTACHMENT 1 12 Competitive Regional Supply State and Regional Sports Analysis The adjacent figure details the competitive outdoor athletic complexes throughout the greater region. Aurora Sports Park and Dick’s Sporting Goods Park, which both offer ore than 24 fields, are considered the premier outdoor multipurpose complexes in Denver market and are the primary destinations for existing outdoor events. Fort Collins area residents traveling more than 50 miles for soccer events on weekends. Greeley is a major destination for Fort Collins area baseball clubs for tournaments and events throughout the summer months. ATTACHMENT 1 13 Competitive Regional Supply State and Regional Sports Analysis The adjacent figure shows the location of the competitive outdoor sports complexes in the greater region ATTACHMENT 1 14 Competitive Regional Supply State and Regional Sports Analysis The adjacent table details the competitive regional indoor supply. Other than Power to Play, only one facility in the regional market, Gold Crown Fieldhouse, offers more than 2 basketball courts in one location. There are also multiple club-operated indoor volleyball complexes in Denver market that are unavailable for outside use. Overall, HSP’s analysis suggests that the competitive supply of comprehensive indoor complexes capable of accommodating tournaments is lacking compared to outdoor complexes. ele ant ndoor e ional Athletic Supply Venue Location istance from Fort Collins mi ndoor Synthetic Turf Basketball Volleyball ndoor Tennis ool ce Veterans Meorial Aquatics Center Thornton, CO 52.0 -- -- -- -- 1 -- George J Meyers Pool Arvada, CO 53.7 -- -- -- -- 1 -- Sport Stable Superior, CO 58.4 124----1 Ice Centre at Promenade Westminster, CO 59.1 -- -- -- -- -- 3 Gold Crown Fieldhouse Lakewood, CO 68.0 -- 6 8 -- -- -- Carmody Recreation Center Lakewood, CO 74.2 -- -- -- -- 1 -- Colorado Momentum Volleyball Centennial, CO 80.3 -- -- 4 -- -- -- Colorado Volleyball Association Englewood, CO 82.3 -- -- 3 -- -- -- Play it Now Sports Colorado Springs, CO 130.0 1 -- 4 -- -- -- Source: Various Sources ATTACHMENT 1 15 Competitive Regional Supply State and Regional Sports Analysis Adjacent figure shows the location of the competitive indoor sports complexes in the greater region ATTACHMENT 1 16 Triple Crown Sports  Triple Crown Sports was established in 1982 and is based out of Fort Collins. The group will produce 119 events in 36 states in 2019. Approximately 70 percent of the events are baseball or fast-pitch softball, while the remainder are comprised of lacrosse, basketball, and volleyball.  Triple Crown produces the largest softball event in the country over the 4th of July. The event uses fields across 27 cities in Colorado. Triple Crown also produces the 2nd largest baseball event in the country in Omaha during College World Series.  Triple Crown produces the number one volleyball event in country, utilizing 65 courts in the Kansas City Convention Center. This features the highest level athletes of any event in Unites States.  The average event is 3.5 days. Some national events last a week, while other events are smaller regional two- day events. The typical overnight stay is three or four nights per visitor.  They are currently producing 12 baseball events and 6 fastpitch events in the state of Colorado. These are occurring in Aurora, Johnstown, Windsor, Loveland and Fort Collins. Events typically last 3 days and attract 150 teams per event.  While not their focus, Triple Crown produces one small basketball event at Regis University (15 teams) and they are planning first lacrosse event (30 to 40 teams). Lacrosse is considered to still be in its infancy in Colorado. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 17 Triple Crown Sports  Fort Collins offers everything organizers and families are looking for in a sports destination, including nature, recreation, attractions, restaurants, and infrastructure. The only thing it lacks are appropriate event facilities and lodging options.  Triple Crown is extremely excited that the city is considering this opportunity. The area features great athletes, coaches, and teams, and can be a premier sports event destination.  Citizens are leaving the community on Memorial Day, 4th of July, Labor Day, and Christmas for surrounding communities. Fort Collins has not reached its potential as a tourist destination.  The distance from the Denver International airports is not an issue. One hour is feasible, and could even be a selling point.  There would be incredible benefits to producing events in their hometown market. If the appropriate facility existed, they would absolutely relocate existing events throughout country as well as create new events in Fort Collins.  The primary facility needs for Triple Crown include:  8 senior baseball synthetic turf fields with 400’ permanent fences and lacrosse/soccer full-size cut-out wings, as well as portable fences, portable mounds, and lights.  8 youth softball synthetic turf fields with 300’ permanent fence and lacrosse/soccer small dimensions as well as portable fences, portable mounds, and lights.  8 lacrosse/soccer Kentucky Bluegrass Fields fields (not as critical as diamonds) Demand Analysis and Stakeholder Feedback ATTACHMENT 1 18 Triple Crown Sports The adjacent figure shows an example of cut-out wings for outfield overlays with multipurpose fields. These overlays, combined with synthetic turf and portable mounds, provide ultimate flexibility for all baseball, softball, and other turf-sport age groups. 400’ diamonds can accommodate regulation multipurpose fields, but only 300’ diamonds can only accommodate modified youth fields. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 19 Triple Crown Sports  This facility, with 16 synthetic turf diamonds and multipurpose fields overlays, would be the premier outdoor diamond complex in the state.  This type of complex would attract a national audience for up to 20 weeks per year, including 8 major national events produced by Triple Crown.  With 16 fields, the complex could host up to 75 teams, plus an additional 50 teams throughout the city. This venue would attract 125 teams over three days, on average. Some events would last five or six days.  Other major events would be driven by area local rights holders including local premier clubs, USSSA, AAU and other governing bodies.  Future phases of development recommended by Triple Crown include:  24 pickleball courts  A 500,000-square foot convention center for basketball and volleyball events  Convention center complexes are typically required to produce major national events that drive significant visitation and room nights to a community.  A dedicated indoor complex with six to eight basketball courts would certainly accommodate demand from area clubs, but the events would be locally and regionally- based. This type of facility would not be large enough to attract national events. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 20 Triple Crown Sports  Fort Collins does not currently offer the hotel supply to support recommended diamond development. With the current situation, they will lose tax dollars to surrounding communities if more hotels are not developed.  Triple Crown is very interested in this opportunity, not only as event producers, but as local citizens that want to showcase Fort Collins to the rest of the country.  Triple Crown would love to be intimately involved in this process moving forward. However, they would not want to manage the complex due to concerns about the perception of a third-party prioritizing their own interests over that of the community. They would certainly consult with the city for scheduling and deal negotiations.  It is important that the city understands that these venue are not designed to make money. The benefits are the economic impact to the community.  Potential long-term facility recommendation for Triple Crown include:  Two ice hockey sheets  One competitive swimming pool Demand Analysis and Stakeholder Feedback ATTACHMENT 1 21 Volleyball Stakeholders  There is a major need for for indoor court training and practice space for area volleyball programs. There is a waiting list for many clubs due to lack of court times.  NORCO built their own complex and a few clubs are training at Power to Play, but many clubs are utilizing any available gym space they can find. This includes senior centers, churches, elementary schools, which present limited availability and scheduling challenges.  Area clubs are constantly travelling to Colorado Springs and Denver for Sunday events.  Power to Play is primarily focused on basketball, specifically as it relates to hosting events. The area is a hotbed for volleyball, but there are no available facilities. Demand Analysis and Stakeholder Feedback  Volleyball season runs from October through June.  Six new regulation courts would be ideal. This facility would likely be occupied by at least two club teams from October through May.  Six courts in one location would meet needs of Fort Collins area volleyball clubs, but it would not meet the needs of all of Northern Colorado. The entire entire region is lacking training space.  Area clubs are utilizing CSU facilities when available, but there are challenges with scheduling. Younger age groups forced to train late at night due to lack of available gyms in the community. ATTACHMENT 1 22 USA Volleyball Rocky Mountain Region  There are currently 8,000 total members within the Rocky Mountain Region of USA Volleyball. Fort Collins is growing, with 12 to 14 total clubs in the market accounting for 25 percent of total membership.  One-day tournaments, the Power League, occur every Sunday from January through April. Two major multi-day events currently occur in the region (downtown Denver) each year over Martin Luther King and Presidents Day Weekend.  The Power League is organized by USA Volleyball. They occur on Sundays because that is the only day collegiate and high school gyms are available.  There are six or seven 2- and 4- court volleyball facilities in greater Denver market that are run by premier clubs or third parties. These are the primary indoor venues in addition to Power to Play.  Front Range Volleyball Club holds one annual event at Denver Convention Center that utilizes 101 courts.  Fort Collins area clubs are hosting Sunday Power Leagues at area schools, NORCO, and Power to Play. These one-day events are attracting teams from Cheyenne, Casper, and Gillette.  A new facility would absolutely be occupied by area clubs during the week. With 6 regulations courts, it would host 24-team Power Leagues on Sundays, with up to 25 percent potentially staying overnight.  There is also potential for area clubs to create and host their own events in a new facility. The demand is there. Tournament Opportunity Analysis ATTACHMENT 1 23 AAU Basketball Colorado  The state is in desperate need of a comprehensive indoor facility. AAU programs and events are typically relegated to high school gymnasiums due to lack of available court space in the market.  AAU events are currently occurring at Power to Play or Gold Crown in Denver. Power to Play has good reputation, but they are not attracting too any teams from Denver area due to accessibility challenges and limited by spectator space.  Triple Crown would likely drive a few events to any new facility in Fort Collins. This is a major advantage.  Denver is not a premier destination for major AAU basketball events that attract Division One coaches due to accessibility constraints. A Fort Collins complex likely wouldn’t be able to host national events, but could host smaller events.  Fort Collins would likely be destination for middle school age groups. High schoolers are playing more on a national circuit for events, and Denver is not a destination for high school events.  There are 30 to 40 AAU-sanctioned events currently occurring in market. There is enough club presence in Fort Collins area to drive middle school events, but high school will be difficult.  Middle school club basketball is now year-around. Many kids are just playing club ball now.  With 8 courts under one roof, there is opportunity for 15 to 20 weekend events each year. Events will likely attract Denver area clubs, but a portion may stay overnight. Tournament Opportunity Analysis ATTACHMENT 1 24 Other Opportunities Every community is looking for their “silver bullet” as it relates to hosting events and driving sports tourism. As detailed in the management analysis, owning and booking venues is hard work, especially due to the competition in the current environment. Esports, for instance, certainly presents opportunity, but with a few exceptional game and competitions, they are not driving significant traffic to a destination (sports tourism) and, as a local draw, present challenges since the real money is being made by the brands who push online viewing. Other trending non-traditional sports that may present opportunity at an indoor facility include:  Badminton, Fencing  Futsal, Team Handball, Weightlifting  Gymnastics – Need local gym operator who wants to be a promoter  Martial Arts (all disciplines) A few of these sports were identified as opportunities throughout the market analysis. While these sports are unlikely to drive multiple major annual events to a new complex in Fort Collins, a new venue would be able to accommodate a variety of other flat-floor sports. These were assumed in the projections in Chapter 10 and 11. Tournament Opportunity Analysis ATTACHMENT 1 25 Hotel Performance Hotel Market Analysis The adjacent table summarizes the performance of the competitive hotel set over the last five years. After three years of stagnant performance, new supply entered the market in 2018, resulting in increased hotel room night demand. While occupancy decreased, the market is expected to stabilize once the new hotel properties are absorbed. Average Daily Rate (ADR) is at a level ($108) that is relatively attractive for event planners and tournament organizers. ATTACHMENT 1 26 Heat Charts Hotel Market Analysis The adjacent table shows the occupancy by day of the week per month for the twelve months following September 2017. Days of the week with occupancy between 75 and 80 percent are shown in yellow, suggesting mild displacement and unaccommodated demand. Orange shows days with 80 to 90 percent occupancy, suggesting very likely displacement. Days in red are for times when occupancy was beyond 90 percent for the set, suggesting near-certain displacement. As shown, there is a significant opportunity to fill gaps the annual hotel calendar on the weekends in winter months. This coincides with the timing for indoor winter sports tournaments and other flat-floor events. Due to the high occupancy levels in the summer months (greater than 80 percent), new hotel development will likely be necessary in order to capture the entirety of the impact generated from an outdoor complex. ATTACHMENT 1 27 Heat Charts Hotel Market Analysis Consistent with the previous slide, the adjacent heat chart demonstrates attractive weekend rates for price-conscious tournament organizers, especially in the winter months. Rates at competitive hotels are the lowest on the weekends in the winter months. Once again, this is a positive indicator for an indoor sports opportunity in a new complex in Fort Collins. ATTACHMENT 1 28 Executive Summary Executive Summary Based on the results of the market analysis detailed throughout this report, HSP presents the following headlines.  HSP’s analysis indicates significant opportunity for a new sports complex in Fort Collins to both accommodate local demand and drive sports tourism to the city. The economic and demographic profile of the community, combined the destination appeal of Fort Collins, the presence of large premier area sports organizations, and passionate local stakeholders, suggests that the demand for both indoor and and outdoor sports exceeds the existing supply. While there are challenges facing the community, the level of opportunity HSP identified may result in a phased project that will establish Fort Collins as a regional and perhaps, national destination for sports tourism.  Locally, the lack of available, quality indoor athletic facilities presents major challenges for area clubs, both indoor and outdoor sports, to train and practice throughout the season and offseason. HSP’s analysis suggests that there is enough demand generated by Fort Collins area organizations to fill a new court/gymnasium facility in the evenings throughout the winter season and drive significant rental revenue to any new indoor complex. However, due to the structure of the sport of volleyball in the state, there are only two existing major multi-day volleyball tournaments in the entire Denver market. The development of a flexible indoor court complex would certainly result in the creation of new local and regional events and would also be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, indoor drones and Esports, but the primary benefit would be to Fort Collins area sports organizations.  In addition, there is a significant demand for indoor synthetic turf training space from baseball, softball, and soccer organizations in the winter months. However, the development a an indoor multipurpose space would likely serve the local population with the shortfall of gym space, but may only generate minimal net new economic impact in the community. If the goal of any new development in Fort Collins is to drive sports tourism, visitation, and hotel room nights, there may greater opportunity with a different type of development. ATTACHMENT 1 29 Executive Summary Executive Summary  The presence of Fort Collins-based Triple Crown Sports presents tremendous advantages for any future sports development in the market. The organization is very excited about the potential opportunity in Fort Collins not only as event producers, but as residents that understand everything the community has to offer. Fort Collins offers the amenities necessary to drive national sports tourism, other than an appropriate venue and adequate hotel supply to support that venue. If a quality 16-diamond field complex with the appropriate support amenities were developed in Fort Collins, Triple Crown would relocate existing national events to Fort Collins and create new events in the market. Triple Crown would produce up to 10 national events each year, the majority of which would be at least 3 days and would bring more than 100 teams to Fort Collins. There would likely be opportunity for an additional 10 events produced by other governing bodies. Triple Crown suggested that future phases should include multipurpose fields, pickleball, an indoor event center, and ice and water complexes.  While an outdoor diamond complex may present the greatest opportunity for hosting impactful events, the existin hotel market ill present challen es. The majority of the branded select-service properties in Fort Collins are performing at greater than 75 percent occupancy from June through September, the primary season for outdoor baseball, softball, and soccer events. If Fort Collins cannot capture the room night demand driven by an outdoor complex, then surrounding communities may reap the rewards of Fort Collins’ investment. New hotel development may be necessary to support a new outdoor sports complex development.  If not for Triple Crown’s presence in the community and interest in producing events, S s primary recommendation ould be to de elop an indoor court complex. This is not only due to the level of demand locally and the potential development of a competitive new outdoor complex in Windsor, but also the lack of competitive supply indoor regionally and the hotel seasonality. However, an organization with the size and resources of Triple Crown, as well as the proven ability to produce major impactful athletic events, should not be ignored. It will be up to Fort Collins’ leadership to determine the goals of any sports development project. ATTACHMENT 1 30 Executive Summary Executive Summary  Ice and aquatics complexes, generally, are extremely difficult to operate financially and do not generate the amount of economic impact that traditional sports complexes generate. While there is certainly need for another pool in the market for school and club swim teams, the limited impact potential combined with the proposed ice and aquatics development in Larimer County, indicate that ice and aquatics should not be a top priority for a new Fort Collins complex. In addition, there is opportunity to grow the sports of tennis locally with new facility development, specifically indoor. But the impact potential of tennis is limited due to the number of athletes that tournaments attract.  n a market ith such opportunity it ill likely be up to city leadership to determine the priority of any ne sports de elopment accommodatin local needs s hostin national e ents and dri in sports tourism There is opportunity for both in Fort Collins  The sports complex location will be important. Sports and event facilities benefit the most when located in close proximity to a community’s hospitality package. The amenities that make an attractive package include amenities such as hotels, restaurants, access to major transportation routes. Additional criteria that can impact the feasibility of a project include site ownership/control, cost of acquisition (if any), as well as sitework and construction costs. Only three sites identified by the project team are large enough to accommodate full build-out (indoor and outdoor) plus room for future expansion. These are detailed in the site analysis.  Sport tourism represents one of the fastest growing sectors in tourism. Destinations that foster the inner sport tourism entrepreneur will gain success by building programs of events and activities that deliver sustainable economic, social and promotional benefits. As Fort Collins looks to the future, the community must continually adapt to remain a sports tourism destination. When it comes to driving tourism, filling hotel rooms and generating economic impact in the community, the landscape of tourism, hospitality and destination appeal is competitive, and the more that can be done to connect with visitors, the better. As consumer desire or demand grows, Fort Collins needs to be strategic and encourage sport tourism innovation. ATTACHMENT 1 31 Executive Summary Executive Summary HSP’s recommendations for Fort Collins include one of two initial development scenarios: Develop a new, 8-court (regulation basketball; 16 volleyball) indoor sports facility that can accommodate mid-week demand driven by local groups and host basketball tournaments, volleyball, wrestling, and other flat-floor sports (and non-sports) events during the off-season for area hoteliers. (Scenarios 1-A and 1-B) or Develop a new 16-diamond synthetic turf outdoor sports facility (with multipurpose field overlays) that can host major regional and national baseball and softball tournaments, driven in part by demand generated by Triple Crown. (Scenario 2) Long-term, HSP recommends that any project consider the opportunity for future expansion that includes both indoor and outdoor components. This was considered in the site analysis. Establish a clear vision and management strategy for the facility, which allows for more freedom and entrepreneurial methods of attracting business. There are a variety of operational models that exist across the country in addressing this increased demand on recreational facilities usage for purposes of economic development (tourism). A close working relationship must exist between business development (tourism driven) efforts and facility operations. Amutualunderstandingandrespectofeachstakeholder’sgoals,objectives and priorities should be reviewed and discussed. Create a model to reinvest a portion of economic impact to the proposed facility. This may take the form of fees or assessments that are dedicated to the facility from revenue sources such as hotel tax and sales tax. The economic, fiscal and employment impact of these investments will be significant in terms of new supported jobs, spending, hotel room nights, and local taxes. ATTACHMENT 1 32 Additional Context Executive Summary Additional questions arose in response to HSP’s assumptions and recommendations. They are clarified below: t seems as thou h the hotels are currently busy durin the summer months ill an outdoor complex create a lot of economic de elopment A: As shown in our analysis, Fort Collins hotels are highly occupied during summer weekends. If a new outdoor complex is developed, it is very likely that much of the hotel and restaurant impact will be compressed outside of the borders of Fort Collins to other nodes of hotels, restaurants and shopping, such as Loveland. This results in a lower impact than would otherwise be captured, unless and until more hotels are developed in Fort Collins. For this reason, the outdoor complex scenario generates about the same impact as the indoor complex, despite a much higher volume of overall usage in the outdoor complex. For the indoor complex, hotels are generally available to absorb most hotel and other impact in the colder months. As a result, the net impact to Fort Collins is similar for the indoor and outdoor complexes, suggesting a higher return on investment for the indoor facility. ill location of the facility affect the o erall economic impact enerated Location of the facility also may have effect on the overall economic impact generated. For example, restaurants and retailers located in Centerra or Windsor could realize more of the impact for a facility located on the east or south side of Fort Collins, versus a location more north, central or west in the community. Also, if a facility or complex is built in a difficult to access area, it could hinder its attractiveness and therefore, impact. ATTACHMENT 1 33 Additional Context Executive Summary One need that is missin at the current time in Fort Collins is an indoor turf field s this somethin to explore no or in the future A: An indoor turf option would be appreciated and used by local organizations, but would fail to bring many impactful tournaments and events. A single turf field is a great amenity and would be highly utilized throughout much of the year, but it does not have the ability to hold impactful tournaments, unless it is divided up into multiple smaller fields for very young players. Tournaments require multiple fields. The cost to develop multiple indoor fields is very high. While there are many needs in Fort Collins, the two scenarios recommended by HSP will provide a much more immediate economic impact as well as relieve pressure on local teams/facilities. e ha e heard that the indsor Softball/Baseball Complex may be re i ed oes this chan e the need of the outdoor diamond complex A: For several years, there were plans for a major sports complex, Rocky Mountain Sports Park, to be developed in Windsor, CO. This facility was originally slated to have dozens of fields, restaurants and hotels and would have had a major impact on any future development in Fort Collins. However, the complex has reportedly been cancelled in totality as of early 2019. The private development model for major youth sports complexes has not occurred with success in any market without public sector financing or significant participation. HSP believes that unless Windsor invests heavily in the project, a large complex there is highly unlikely. Outside of Triple Cro n Sports are there other roups that ould use the diamond complex A: There are a number of potential user groups identified as a result of the study. The other users are discussed in the report. HSP believes that the outdoor complex would be well utilized for tournaments and during weekdays, regardless if Triple Crown is involved in producing events. ATTACHMENT 1 34 Recommendations – Scenario 1-A Executive Summary 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP The adjacent figure, prepared by Perkins + Will, shows a concept layout for the recommended Scenario 1-A project, which includes eight regulation basketball courts (convertible to 16 volleyball courts). This concept includes all support components recommended by HSP for this scenario. Please note that this drawing is strictly conceptual at this time. There are advantages and disadvantages to separating the courts into two distinct event areas, as will be described later in this document. ATTACHMENT 1 35 Cost – Recommended Scenario 1-A The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 1–A project shown on the previous slide. Perkins + Will projects the 90,000-square foot complex to cost $27.85 million including site development and non-construction costs. The site area required for the indoor complex would range from 15-20 acres depending on specific site features and the final layout. Buildin Space Area Total Cost Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development $2,844,173 Total ro ected Cost for Secondary ecommendation * Total Cost includes construction and soft costs at a 28% multiplier for design fees, contingency, equipment, other project expenses Executive Summary ATTACHMENT 1 36 Recommendations – Scenario 1-B Executive Summary 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP 11. Indoor Turf Field ndoor Synthetic Turf HSP’s analysis determined that the lack of available indoor turf space, combined with harsh weather conditions the throughout the winter months and lack of indoor training space, suggests an opportunity for a multipurpose field component in a new indoor facility. The primary turf opportunity lies with practices and training for local sports organizations during the offseason. A FIFA-regulation synthetic turf multipurpose field that features drop-down dividers (allowing the complex to offer four separate fields) would also have the ability to host certain indoor soccer, baseball/softball, lacrosse, and other flat-floor events throughout the offseason. Due to the significant additional cost required to develop a this type of facility, HSP conducted a second scenario that includes all base-scenario 1-A recommendations with an attached multipurpose field. This is shown in the adjacent figure. ATTACHMENT 1 37 Cost – Scenario 1-B The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 1-B project shown on the previous slide. Perkins + Will projects the 188,000-square foot complex to cost $53.34 million including site development and non-construction costs. The site area required for the indoor complex would range from 25-30 acres depending on specific site features and the final layout. Executive Summary Buildin Space Area Total Cost Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Turf Fieldhouse 97,900 $23,809,280 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development (additional costs for expanded project) $4,527,757 Total ro ected Cost for Secondary ecommendation ATTACHMENT 1 38 The outdoor Scenario 2 recommendation, prepared by Perkins + Will, represents a concept layout for a roughly 80 acre site including the following:  16 synthetic turf baseball diamonds arranged in (4) four-plex clusters.  8 synthetic fields would be full-sized (400’) for adult, high school and collegiate league use  8 synthetic turf fields would be youth sized (300’) for ages up to 13 years.  The fencing is arranged to allow for multipurpose fields to be striped in the outfield of each diamond. The complex includes parking for at least 450 vehicles, paving, site circulation, viewing and gathering plazas, and area for site maintenance, drainage and detention. Recommendation – Scenario 2 Executive Summary Site 4 baseball area re diamond uirement 4-plexes with circulation and practice areas 36.0 acres Parking for approximately 450 cars 4.0 acres Multiply developed area by roughly 2.00 for buffers, paving, detention, etc. 40.0 acres Total estimated Site area re uired for Baseball/M Fields Complex acres ATTACHMENT 1 39 Recommendation – Scenario 2 Cost The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 2 project shown on the previous slide. Perkins + Will projects the 80 acre complex to cost $27 million including site development and non-construction costs. ro ect cate ory Total Cost Baseball Fields Development $16,758,840 Fields, field lighting, lawn areas, restroom & concession buildings, dugouts, seating Parking and Driveways $2,468,000 Parking lots, driveways, specialty paving, sidewalks, signage General Site Development $1,465,070 Grass, landscaping, trees, fencing, furnishings, enclosures, etc. Site Lighting $135,000 Lighting for parking lots, driveways, pedestrian Development Costs (water taps, utility development fees, reports, submittals) $750,000 Non-construction costs (design & engineering fees, contingencies, equipment) $5,257,728 Total ro ected Cost for rimary ecommendation Executive Summary ATTACHMENT 1 40 Summary of Scenarios Executive Summary The adjacent tables compares the cost, performance, and projected impact of the three sports complex development scenarios. While Scenario 1-B (with an attached synthetic turf multipurpose field) will accommodated excess demand generated by local groups and teams for offseason practice and training, the incremental benefit to the community as a result of net new visitation and spending is minimal compared to scenario 1-A. Scenario 2 generates the greatest impact of the three facilities, but the impact is limited due to the existing hotel demand in the summer months in Fort Collins. Conversely, indoor complexes generate the majority of their impact and room nights throughout the winter months, allowing Fort Collins to capture the majority of the impact driven by the facility. Fort Collins Summary of Scenarios Scenario A ndoor Courts Scenario B Courts ith ndoor Multipurpose Scenario Outdoor iamonds Facility Size 90 000 SF 188 000 SF 80-90 acres Pro ected Cost 27.9 million 53.3 million 27.0 million of Annual Events Stabilized 90 101 39 Annual Event Attendance Stabilized 76 400 83 600 131 700 Net Operating Income Loss - ear 5 - 111 000 - 92 000 - 255 000 Total Annual Room Nights Generated ear 5 12 259 13 713 24 573 Net New Room Nights Captured in Fort Collins 11,646 13,028 13,269 Net New Spending 20 years 138 849 000 154 042 000 201 908 000 FTE Jobs Supported 117 133 151 New Taxes Collected 20 years 3 860 000 4 297 000 5 213 000 Source: Hunden Strategic Partners ATTACHMENT 1 Sports Complex (Options 1A/1B) 8 indoor courts for multi-sport, plus 1 indoor turf field for option B. Geared to supporting local use for year-round. Can also support possible regional tournaments and other events. Positive • Large indoor space could be used for shelter/gathering in the event of severe weather event to aid resiliency Negative • Only greenfield spaces have been identified for the site, so any development will disrupt natural environment Positive • Tournament use would promote some additional tourism and patronizing of local businesses, such as restaurants • Helps showcase Fort Collins as a destination • May alleviate some demand on existing recreation facilities Negative • None identified Positive • Provides additional opportunities to access physical activity • Indoor facility may promote more feeling of safety vs. outdoor recreation opportunities • Provides additional opportunity for all community members to access City services Negative • None identified Tradeoffs • Potentially neutral impact to transportation- could have reduced trip duration by adding a local facility, but the facility will also drive additional traffic. • There may be additional site dependent tradeoffs Mitigations • Building to LEED certification would mitigate energy use and climate action impacts Key Alignment: 2.1 Improve the community’s sense of place with a high value on natural areas, culture, recreation and park systems. ATTACHMENT 2 2.2 Packet Pg. 45 Attachment: Triple Bottom Line Scenarios (8186 : Sports Complex Facility Feasibility Study) X X X ATTACHMENT 2 2.2 Packet Pg. 46 Attachment: Triple Bottom Line Scenarios (8186 : Sports Complex Facility Feasibility Study) Sports Complex (Option 2) 16 lit outdoor synthetic fields for multi-sport. Geared to attract large tournaments and tourism focus. Can also support ongoing leagues, however we are not currently constrained on capacity. Positive • Synthetic fields require less water use than traditional fields, and does not require traditional combustion lawn equipment to maintain Negative • Only greenfield spaces have been identified for the site, so any development will disrupt natural environment • Synthetic turf requires replacement every 10-20 years and is not currently recyclable Positive • Ability to attract national tournaments would draw more visitors and tourism to the City, contributing to hotel, short-term rental, restaurant, and other sales tax growth • This facility would be the premier destination of it’s kind in Colorado, contributing to community brand and identity • May alleviate some demand on other community park facilities Negative • None identified Positive • Provides additional opportunities to access physical activity • Provides additional opportunity for all community members to access City services Negative • None identified Tradeoffs • Potentially neutral impact to transportation- could have reduced trip duration by adding a local facility, but the facility will also drive additional traffic. • There may be additional site dependent tradeoffs Mitigations • Using synthetic turf mitigates water impacts • Using energy efficient grade materials (such as LED lighting for fields) will minimize energy impacts Key Alignment: 2.1 Improve the community’s sense of place with a high value on natural areas, culture, recreation and park systems. 3.6 Enhance the economic vitality of our community. ATTACHMENT 2 2.2 Packet Pg. 47 Attachment: Triple Bottom Line Scenarios (8186 : Sports Complex Facility Feasibility Study) ATTACHMENT 2 2.2 Packet Pg. 48 Attachment: Triple Bottom Line Scenarios (8186 : Sports Complex Facility Feasibility Study) Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: July 24, 2019 TO: Mayor and Councilmembers CC: Darin Atteberry, City Manager; Jeff Mihelich, Deputy City Manager; Jacqueline Kozak-Thiel, Chief Sustainability Officer Josh Birks, Economic Health and Redevelopment Director FROM: Denichiro “Denny” Otsuga, Chair – Economic Advisory Commission; Connor Barry, Vice-Chair – Economic Advisory Commission; and Members, Economic Advisory Commission for 2019 RE: SPORTS COMPLEX FACILITY FEASIBILITY STUDY On July 17, the Economic Advisory Commission (EAC) heard a presentation on a potential multi-use sports complex that could drive sports tourism to the City. The purpose of this memorandum is to provide a summary of EAC’s discussion and comments based on this presentation. Summary of Discussion: • Several Commission members noted that the opportunity costs of building a sports complex must be fully considered, including: - Use of City of Fort Collins tax dollars especially if a sports complex does not “pay for itself”, that is, if it will be subsidized specifically for the sports tourism. - Commercial or other uses of the land since there is limited availability of undeveloped land. - The Commission has concerns on the facility’s capacity to generate sales tax revenue for the City, that is realistic, accounting for the historical leakage of benefits to surrounding communities. - Other potential investments in tourism (e.g. upcoming regional tourism plan). Does building this complex preclude other investments that might be a better fit for Fort Collins and/or provide greater increased tax revenue? • Encouraged staff to formulate innovative ways to leverage this proposal with other projects. For example, use of an outdoor complex that doubles as a community park; combined development with hotels and other commercial development to help pay for the capital costs of the complex; marketing plan and campaign for the city and the region to ensure maximum use of the facility. • The Commission noted the significant local demand for indoor facilities (as confirmed by the presenting staff) that differs from one targeted to regional tourism. ATTACHMENT 3 2.3 Packet Pg. 49 Attachment: Economic Advisory Commission Memo - July 24, 2019 (8186 : Sports Complex Facility Feasibility Study) ATTACHMENT 4 2.4 Packet Pg. 50 Attachment: Visit Fort Collins Letter of Support (8186 : Sports Complex Facility Feasibility Study) 1 Fort Collins Sports Facility: Impact and Feasibility Analysis Report Presenters: Wendy Williams, Bob Adams, Rob Hunden ATTACHMENT 5 2.5 Packet Pg. 51 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Background • The 2017-2018 budget included funding for a Sports Complex Economic Impact and Feasibility study. • Hunden Strategic Partners (HSP), including staff at Perkins + Will, was hired through a competitive RFP process in 2018. 2 ATTACHMENT 5 2.5 Packet Pg. 52 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Impact and Feasibility Study • Hunden Strategic Partners conducted a comprehensive analysis around the development of a multi-use facility within city limits. • Findings from the study outlined the following options for the proposed sports complex: • Option 1: Build a complex that is designed to address local, community needs • Option 2: Build a complex that is designed to drive local sports tourism and economic impact • Option 3: Build a complex that addresses both priorities in some way 3 ATTACHMENT 5 2.5 Packet Pg. 53 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Questions for Council • What additional information, if any, does Council think would be helpful? • What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth • Does Council want to move forward with this project? • Should staff pursue opportunities for potential partnerships or donative relationships? 4 ATTACHMENT 5 2.5 Packet Pg. 54 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Executive Summary The Hunden Strategic Partners Team, including professionals at Perkins + Will, was engaged by the City of Fort Collins to conduct a comprehensive market, financial feasibility, and economic impact analysis for the development of a sports facility within the city limits. The key questions that HSP was tasked to answer were:  What is the market opportunity for a new indoor or outdoor sports complex development in Fort Collins?  What is the existing supply of sports and recreation facilities in Fort Collins and the surrounding area? Is there a gap in quality or size of facilities? What is the level of local demand for a new sports complex?  What is the existing state and greater regional supply of sports complexes capable of hosting impactful tournaments and events? Is there a gap in supply that a new Fort Collins facility could accommodate? What is the opportunity to host major state and regional tournaments?  How is the area hotel market performing? What does this mean for the market opportunity for a new sports complex?  Based on the comprehensive market analysis, what are the conclusions and recommendations? Should multiple scenarios be considered?  How is the recommended sports facility projected to perform? What is the expected economic, fiscal, and employment impact of such a development?  What are the site options for such a development? What are the pros and cons of the potential development sites? Executive Summary 5 ATTACHMENT 5 2.5 Packet Pg. 55 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Drive Time Demographics Due to Denver’s distance from surrounding metropolitan hubs, the majority of the tournament and event attendees will likely come from within this three-hour radius (population: 5.3 million) Economic, Demographic, and Tourism Analysis 6 ATTACHMENT 5 2.5 Packet Pg. 56 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Relevant Hotel Supply Approximately 3,100 rooms among 33 hotels are currently offered in Fort Collins. 7 Fort Collins Hotel Supply Property Distance Rooms Chain Scale Open Autograph Collection The Elizabeth Hotel 0.1 164 Upper Upscale Dec-17 The Armstrong Hotel 0.2 45 Indep Jun-28 Best Western University Inn 0.8 70 Midscale Jun-61 El Palomino Motel 1.2 36 Indep Jun-43 Hilton Fort Collins 1.4 256 Upper Upscale May-85 Budget Host Fort Collins 1.5 30 Economy Jun-74 Best Western Kiva Inn 1.6 62 Midscale Feb-82 Americas Best Value Inn Fort Collins 1.7 40 Economy Aug-61 Marriott Fort Collins 3.3 229 Upper Upscale Jun-85 Days Inn Fort Collins 3.5 77 Economy Jun-81 Motel 9 3.5 35 Indep Jun-88 Super 8 Fort Collins 3.6 69 Economy Jun-85 La Quinta Inns & Suites Fort Collins 3.6 135 Midscale Jun-72 Baymont Inn & Suites Fort Collins 3.6 62 Midscale Jul-95 Quality Inn & Suites I 25 North Fort Collins 3.7 87 Midscale Dec-14 Clarion Inn Fort Collins 3.7 110 Upper Midscale Nov-65 Quality Inn & Suites University Fort Collins 3.7 66 Midscale Jun-97 Motel 6 Fort Collins 3.8 127 Economy Sep-78 Comfort Inn Fort Collins North 3.8 62 Upper Midscale Nov-00 Americas Best Value Inn & Suites Ft Collins E at I 25 4.1 120 Economy Jun-85 Candlewood Suites Fort Collins 4.1 83 Midscale Dec-14 Courtyard Fort Collins 4.5 112 Upscale Mar-96 Holiday Inn Express & Suites Fort Collins 4.6 89 Upper Midscale Oct-05 Comfort Suites Fort Collins 4.6 66 Upper Midscale Jul-98 Homewood Suites by Hilton Fort Collins 4.6 99 Upscale May-07 Hampton Inn Fort Collins 4.6 75 Upper Midscale Oct-96 Residence Inn Fort Collins 4.6 113 Upscale Jul-99 Home2 Suites by Hilton Fort Collins 4.9 108 Upper Midscale Apr-18 Hilton Garden Inn Fort Collins 5.2 120 Upscale Sep-07 Cambria hotel & suites Fort Collins 5.3 90 Upscale Sep-08 Fairfield Inn & Suites Fort Collins South 5.6 106 Upper Midscale Nov-18 AmericInn Lodge & Suites Fort Collins South 8.8 61 Midscale Nov-00 Days Inn Wellington Fort Collins Area 8.8 93 Economy Jun-04 Total/Average 3.72 3,097 -- Jun-90 Source: Smith Travel Research Hotel Market Analysis ATTACHMENT 5 2.5 Packet Pg. 57 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Lodging Summary The existing hotel supply has a fairly even distribution among chain scales, providing different price points and quality levels for potential visitors. Hotel Market Analysis 8 ATTACHMENT 5 2.5 Packet Pg. 58 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Map Tournaments and groups for sports typically prefer lower-cost, branded hotels with built-in breakfast, such as Hampton Inn, Fairfield, Hyatt Place, etc. Due to cost and efficiency, they tend to avoid full-service hotels. The majority of the preferred branded, select service hotels are located 4.5 miles south of downtown Fort Collins. Hotel Market Analysis 9 ATTACHMENT 5 2.5 Packet Pg. 59 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Local Athletic Supply - Outdoor Fort Collins area clubs are leaving the city and traveling to Loveland and Greeley for weekend tournaments throughout the summer months. 10 Local Outdoor Athletic Complex Supply Venue Location Outdoor Multipurpose Multipurpose Turf Fields Outdoor Baseball/Softball Basketball Tennis Sand Volleyball Other City Park Fort Collins -- -- 2 -- -- -- Baseball field with bleachers and adjacent softball field Edora Park Fort Collins -- -- 2 -- 6 -- Fort Collins Soccer Complex Fort Collins 11 -- -- -- -- -- Field arrangement and quantity can vary Fossil Creek Park Fort Collins -- -- 2 2 5 -- Greenbriar Park Fort Collins -- -- 2 -- -- -- Martinez Park Fort Collins -- -- 2 3 4 -- Rolland Moore Park Fort Collins -- -- 4 5 8 2 Temporary multipurpose fields can be created in the outfield Spring Canyon Park Fort Collins -- -- 2 3 3 2 Spring Park Fort Collins -- 2 -- -- -- Troutman Park Fort Collins 4 -- -- 1 2 -- Twin Silo Park Fort Collins -- -- 2 -- 4 -- Warren Park Fort Collins 2 -- 1 1 4 1 Barnes Park Loveland -- -- 10 -- -- -- Batting cages Centennial Baseball Complex Loveland -- -- 6 -- 4 -- Loveland Sports Park Loveland 8 1 -- 2 -- 2 One turf championship field Diamond Valley Sports Complex Windsor -- -- 3 -- -- -- Source: Various Sources Local Sports Supply Analysis ATTACHMENT 5 2.5 Packet Pg. 60 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Local Athletic Supply Local Sports Supply Analysis 11 ATTACHMENT 5 2.5 Packet Pg. 61 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Local Athletic Supply As shown, only one facility in Fort Collins area offers more than two basketball courts in one location, indicating a major supply gap. 12 Relevant Local Indoor Athletic Complex Supply Venue Location Indoor Synthetic Turf Basketball Volleyball Indoor Tennis Pool Ice Other The Edge Sports Center* Fort Collins 1 -- -- -- -- -- Batting cages Endora Pool Ice Center (EPIC) Fort Collins -- -- -- -- 1 2 10-lane, 50m pool, seating for 1,000 Mulberry Pool Fort Collins -- -- -- -- 1 -- 6-lane, 25-yard NoCo Ice Center Fort Collins----------1 Northside Aztlan Community Center Fort Collins -- 3 3 -- -- -- Weight room Fort Collins Senior Center Fort Collins -- 1 1 -- 1 -- 4-lane, 25-yard Budweiser Events Center Loveland -- 1 1 -- -- 1 7,200-seat arena Arena Sports LLC* Windsor 1 -- 3 -- -- -- Norco Volleyball Club Windsor -- -- 6 -- -- -- Power 2 Play Sports Events Center Windsor -- 6 6 -- -- -- Concession and lounge area between courts *Uncertain future Source: Various Sources Local Sports Supply Analysis ATTACHMENT 5 2.5 Packet Pg. 62 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Local Athletic Supply Local Sports Supply Analysis 13 ATTACHMENT 5 2.5 Packet Pg. 63 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Competitive Regional Supply Aurora Sports Park and Dick’s Sporting Goods Park, which both offer ore than 24 fields, are considered the premier outdoor multipurpose complexes in Denver market and are the primary destinations for existing outdoor events. State and Regional Sports Analysis 14 ATTACHMENT 5 2.5 Packet Pg. 64 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Competitive Regional Supply State and Regional Sports Analysis 15 ATTACHMENT 5 2.5 Packet Pg. 65 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Competitive Regional Supply Overall, HSP’s analysis suggests that the competitive supply of comprehensive indoor complexes capable of accommodating tournaments is lacking compared to outdoor complexes. 16 Relevant Indoor Regional Athletic Supply Venue Location Distance from Fort Collins (mi) Indoor Synthetic Turf Basketball Volleyball Indoor Tennis Pool Ice Veterans Meorial Aquatics Center Thornton, CO 52.0 -- -- -- -- 1 -- George J Meyers Pool Arvada, CO 53.7 -- -- -- -- 1 -- Sport Stable Superior, CO 58.4 1 2 4 -- -- 1 Ice Centre at Promenade Westminster, CO 59.1 -- -- -- -- -- 3 Gold Crown Fieldhouse Lakewood, CO 68.0 -- 6 8 -- -- -- Carmody Recreation Center Lakewood, CO 74.2 -- -- -- -- 1 -- Colorado Momentum Volleyball Centennial, CO 80.3 -- -- 4 -- -- -- Colorado Volleyball Association Englewood, CO 82.3 -- -- 3 -- -- -- Play it Now Sports Colorado Springs, CO 130.0 1 -- 4 -- -- -- Source: Various Sources State and Regional Sports Analysis ATTACHMENT 5 2.5 Packet Pg. 66 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Competitive Regional Supply State and Regional Sports Analysis 17 ATTACHMENT 5 2.5 Packet Pg. 67 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Triple Crown Sports  The group will produce 119 events in 36 states in 2019. Approximately 70 percent of the events are baseball or fast-pitch softball, while the remainder are comprised of lacrosse, basketball, and volleyball.  Triple Crown produces the largest softball event in the country over the 4th of July. The event uses fields across 27 cities in Colorado. Triple Crown also produces the 2nd largest baseball event in the country in Omaha during College World Series. 18  The average event is 3.5 days. Some national events last a week, while other events are smaller regional two- day events. The typical overnight stay is three or four nights per visitor.  They are currently producing 12 baseball events and 6 fastpitch events in the state of Colorado. These are occurring in Aurora, Johnstown, Windsor, Loveland and Fort Collins. Events typically last 3 days and attract 150 teams per event. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 2.5 Packet Pg. 68 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Triple Crown Sports The adjacent figure shows an example of cut-out wings for outfield overlays with multipurpose fields. Demand Analysis and Stakeholder Feedback 19 ATTACHMENT 5 2.5 Packet Pg. 69 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Triple Crown Sports  This facility, with 16 synthetic turf diamonds and multipurpose fields overlays, would be the premier outdoor diamond complex in the state.  With 16 fields, the complex could host up to 75 teams, plus an additional 50 teams throughout the city. This venue would attract 125 teams over three days, on average. Some events would last five or six days. 20  Future phases of development recommended by Triple Crown include:  24 pickleball courts  A 500,000-square foot convention center for basketball and volleyball events  A dedicated indoor complex with six to eight basketball courts would certainly accommodate demand from area clubs, but the events would be locally and regionally-based. This type of facility would not be large enough to attract national events. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 2.5 Packet Pg. 70 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Volleyball Stakeholders  NORCO built their own complex and a few clubs are training at Power to Play, but many clubs are utilizing any available gym space they can find. This includes senior centers, churches, elementary schools, which present limited availability and scheduling challenges.  Area clubs are constantly travelling to Colorado Springs and Denver for Sunday events. 21  Sixcourtsinonelocationwouldmeet needs of Fort Collins area volleyball clubs, but it would not meet the needs of all of Northern Colorado. The entire region is lacking training space.  There is a major need for indoor court training and practice space for area volleyball programs. There is a waiting list for many clubs due to lack of court times. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 2.5 Packet Pg. 71 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) USA Volleyball Rocky Mountain Region Tournament Opportunity Analysis 22  One-day tournaments, the Power League, occur every Sunday from January through April. Two major multi- day events currently occur in the region (downtown Denver) each year over Martin Luther King and Presidents Day Weekend.  There are six or seven 2- and 4- court volleyball facilities in greater Denver market that are run by premier clubs or third parties. These are the primary indoor venues in addition to Power to Play.  A new facility would absolutely be occupied by area clubs during the week. With 6 regulations courts, it would host 24-team Power Leagues on Sundays, with up to 25 percent potentially staying overnight.  There is also potential for area clubs to create and host their own events in a new facility. The demand is there. ATTACHMENT 5 2.5 Packet Pg. 72 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) AAU Basketball Colorado 23  The state is in desperate need of a comprehensive indoor facility. AAU programs and events are typically relegatedtohighschoolgymnasiums due to lack of available court space in the market.  AAU events are currently occurring at Power to Play or Gold Crown in Denver. Power to Play has good reputation, but they are not attracting too any teams from Denver area due to accessibility challenges and limited by spectator space.  There are 30 to 40 AAU-sanctioned events currently occurring in market. There is enough club presence in Fort Collins area to drive middle school events, but high school will be difficult.  With 8 courts under one roof, there is opportunity for 15 to 20 weekend events each year. Events will likely attract Denver area clubs, but a portion may stay overnight. Tournament Opportunity Analysis ATTACHMENT 5 2.5 Packet Pg. 73 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Other Opportunities 24 Other trending non-traditional sports that may present opportunity at an indoor facility include:  Badminton, Fencing  Futsal, Team Handball, Weightlifting  Gymnastics – Need local gym operator who wants to be a promoter  Martial Arts (all disciplines) A few of these sports were identified as opportunities throughout the market analysis. While these sports are unlikely to drive multiple major annual events to a new complex in Fort Collins, a new venue would be able to accommodate a variety of other flat-floor sports. These were assumed in the projections in Chapter 10 and 11. Tournament Opportunity Analysis ATTACHMENT 5 2.5 Packet Pg. 74 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Hotel Performance After three years of stagnant performance, new supply entered the market in 2018, resulting in increased hotel room night demand. Average Daily Rate (ADR) is at a level ($108) that is relatively attractive for event planners and tournament organizers. Hotel Market Analysis 25 ATTACHMENT 5 2.5 Packet Pg. 75 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Heat Charts As shown, there is a significant opportunity to fill gaps the annual hotel calendar on the weekends in winter months. This coincides with the timing for indoor winter sports tournaments and other flat-floor events. Due to the high occupancy levels in the summer months (greater than 80 percent), new hotel development will likely be necessary in order to capture the entirety of the impact generated from an outdoor complex. Hotel Market Analysis 26 ATTACHMENT 5 2.5 Packet Pg. 76 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Heat Charts Rates at competitive hotels are the lowest on the weekends in the winter months. Once again, this is a positive indicator for an indoor sports opportunity in a new complex in Fort Collins. Hotel Market Analysis 27 ATTACHMENT 5 2.5 Packet Pg. 77 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Executive Summary Based on the results of the market analysis detailed throughout this report, HSP presents the following headlines:  HSP’s analysis indicates significant opportunity for a new sports complex in Fort Collins to both accommodate local demand and drive sports tourism to the city.  The economic and demographic profile of the community, combined with the destination appeal of Fort Collins, the presence of large premier area sports organizations, and passionate local stakeholders, suggests that the demand for both indoor and outdoor sports exceeds the existing supply.  The development of a flexible indoor court complex would certainly result in the creation of new local and regional events and would also be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, indoor drones and Esports, but the primary benefit would be to Fort Collins area sports organizations.  There is a significant demand for indoor synthetic turf training space from baseball, softball, and soccer organizations in the winter months. If the goal of any new development in Fort Collins is to drive sports tourism, visitation, and hotel room nights, there may greater opportunity with a different type of development. Executive Summary 28 ATTACHMENT 5 2.5 Packet Pg. 78 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Executive Summary  The presence of Fort Collins-based Triple Crown Sports presents tremendous advantages for any future sports development in the market. Triple Crown would produce up to 10 national events each year, the majority of which would be at least 3 days and would bring more than 100 teams to Fort Collins. There would likely be opportunity for an additional 10 events produced by other governing bodies. Triple Crown suggested that future phases should include multipurpose fields, pickleball, an indoor event center, and ice and water complexes.  While an outdoor diamond complex may present the greatest opportunity for hosting impactful events, the existing hotel market will present challenges. If Fort Collins cannot capture the room night demand driven by an outdoor complex, then surrounding communities may reap the rewards of Fort Collins’ investment. New hotel development may be necessary to support a new outdoor sports complex development.  If not for Triple Crown’s presence in the community and interest in producing events, HSP’s primary recommendation would be to develop an indoor court complex. This is not only due to the level of demand locally and the potential development of a competitive new outdoor complex in Windsor, but also the lack of competitive supply indoor regionally and the hotel seasonality. Executive Summary 29 ATTACHMENT 5 2.5 Packet Pg. 79 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Executive Summary  Ice and aquatics complexes, generally, are extremely difficult to operate financially and do not generate the amount of economic impact that traditional sports complexes generate. While there is certainly need for another pool in the market for school and club swim teams, the limited impact potential combined with the proposed ice and aquatics development in Larimer County, indicate that ice and aquatics should not be a top priority for a new Fort Collins complex.  In a market with such opportunity, it will likely be up to city leadership to determine the priority of any new sports development: accommodating local needs vs. hosting national events and driving sports tourism. There is opportunity for both in Fort Collins.  The sports complex location will be important. Sports and event facilities benefit the most when located in close proximity to a community’s hospitality package. The amenities that make an attractive package include hotels, restaurants, access to major transportation routes. Executive Summary 30 ATTACHMENT 5 2.5 Packet Pg. 80 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Executive Summary HSP’s recommendations for Fort Collins include one of two initial development scenarios: • Develop a new, 8-court (regulation basketball; 16 volleyball) indoor sports facility that can accommodate mid-week demand driven by local groups and host basketball tournaments, volleyball, wrestling, and other flat-floor sports (and non-sports) events during the off-season for area hoteliers. (Scenarios 1-A and 1-B) OR • Develop a new 16-diamond synthetic turf outdoor sports facility (with multipurpose field overlays) that can host major regional and national baseball and softball tournaments, driven in part by demand generated by Triple Crown. (Scenario 2) Long-term, HSP recommends that any project consider the opportunity for future expansion that includes both indoor and outdoor components. This was considered in the site analysis. • Establish a clear vision and management strategy for the facility, which allows for more freedom and entrepreneurial methods of attracting business. • Create a model to reinvest a portion of economic impact to the proposed facility. Executive Summary 31 ATTACHMENT 5 2.5 Packet Pg. 81 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Recommendations – Scenario 1-A This concept includes all support components recommended by HSP for this scenario. Please note that this drawing is strictly conceptual at this time. Executive Summary 32 ATTACHMENT 5 2.5 Packet Pg. 82 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Cost – Recommended Scenario 1-A Perkins + Will projects the 90,000-square foot complex to cost $27.85 million including site development and non-construction costs. The site area required for the indoor complex would range from 15-20 acres depending on specific site features and the final layout. Executive Summary 33 Building Space Area Total Cost ($) * Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development $2,844,173 Total Projected Cost for Secondary Recommendation $27,850,817 *Total Cost includes construction and soft costs at a 28% multiplier for design fees, contingency, equipment, other project expenses ATTACHMENT 5 2.5 Packet Pg. 83 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Recommendations – Scenario 1-B Indoor Synthetic Turf: The primary turf opportunity lies with practices and training for local sports organizations during the offseason. A FIFA-regulation synthetic turf multipurpose field that features drop-down dividers (allowing the complex to offer four separate fields) would also have the ability to host certain indoor soccer, baseball/softball, lacrosse, and other flat-floor events throughout the offseason. Executive Summary 34 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP 11. Indoor Turf Field 11 3 4 5 1 7 8 3 2 10 9 6 ATTACHMENT 5 2.5 Packet Pg. 84 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Cost – Recommended Scenario 1-A Perkins + Will projects the 188,000-square foot complex to cost $53.34 million including site development and non-construction costs.Thesitearearequiredfortheindoor complex would range from 25-30 acres depending on specific site features and the final layout. Executive Summary 35 Building Space Area Total Cost ($) * Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Turf Fieldhouse 97,900 $23,809,280 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development (additional costs for expanded project) $4,527,757 Total Projected Cost for Secondary Recommendation 187,802 $53,343,681 ATTACHMENT 5 2.5 Packet Pg. 85 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Recommendation – Scenario 2 The outdoor Scenario 2 recommendation, prepared by Perkins + Will, represents a concept layout for a roughly 80 acre site including the following: • 16 synthetic turf baseball diamonds arranged in (4) four-plex clusters. • 8 synthetic fields would be full-sized (400’) for adult, high school and collegiate league use • 8 synthetic turf fields would be youth sized (300’) for ages up to 13 years. • The fencing is arranged to allow for multipurpose fields to be striped in the outfield of each diamond. The complex includes parking for at least 450 vehicles, paving, site circulation, viewing and gathering plazas, and area for site maintenance, drainage and detention. Executive Summary 36 Site area requirement: 4 baseball diamond 4-plexes with circulation and practice areas 36.0 acres Parking for approximately 450 cars 4.0 acres Multiply developed area by roughly 2.00 for buffers, paving, detention, etc. 40.0 acres Total estimated Site area required for Baseball/MP Fields Complex 80.0-90.0 acres ATTACHMENT 5 2.5 Packet Pg. 86 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Recommendation – Scenario 2 Cost Perkins + Will projects the 80 acre complex to cost $27 million including site development and non-construction costs. Executive Summary 37 Project category Total Cost ($) Baseball Fields Development $16,758,840 Fields, field lighting, lawn areas, restroom & concession buildings, dugouts, seating Parking and Driveways $2,468,000 Parking lots, driveways, specialty paving, sidewalks, signage General Site Development $1,465,070 Grass, landscaping, trees, fencing, furnishings, enclosures, etc. Site Lighting $135,000 Lighting for parking lots, driveways, pedestrian Development Costs (water taps, utility development fees, reports, submittals) $750,000 Non-construction costs (design & engineering fees, contingencies, equipment) $5,257,728 Total Projected Cost for Primary Recommendation $26,971,138 ATTACHMENT 5 2.5 Packet Pg. 87 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Summary of Scenarios • While Scenario 1-B will accommodate excess demand generated by local groups and teams for offseason practice and training, the incremental benefit to the community is minimal compared to scenario 1-A. • Scenario 2 generates the greatest impact of the three facilities, but the impact is limited due to the existing hotel demand in the summer months in Fort Collins. • Indoor complexes generate the majority of their impact and room nights throughout the winter months, allowing Fort Collins to capture the majority of the impact driven by the facility. Executive Summary 38 Fort Collins - Summary of Scenarios Scenario 1-A (Indoor Courts) Scenario 1-B (Courts with Indoor Multipurpose) Scenario 2 (Outdoor Diamonds) Facility Size 90,000 SF 188,000 SF 80-90 acres Projected Cost $27.9 million $53.3 million $27.0 million # of Annual Events (Stabilized) 90 101 39 Annual Event Attendance (Stabilized) 76,400 83,600 131,700 Net Operating Income (Loss) - Year 5 -$111,000 -$92,000 -$255,000 Total Annual Room Nights Generated (Year 5) 12,259 13,713 24,573 Net New Room Nights Captured in Fort Collins 11,646 13,028 13,269 Net New Spending (20 years) $138,849,000 $154,042,000 $201,908,000 FTE Jobs Supported 117 133 151 New Taxes Collected (20 years) $3,860,000 $4,297,000 $5,213,000 Source: Hunden Strategic Partners ATTACHMENT 5 2.5 Packet Pg. 88 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Questions for Council • What additional information, if any, does Council think would be helpful? • What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth • Does Council want to move forward with this project? • Should staff pursue opportunities for potential partnerships or donative relationships? 39 ATTACHMENT 5 2.5 Packet Pg. 89 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) 40 Fort Collins Sports Facility: Impact and Feasibility Analysis Report Presenters: Wendy Williams, Bob Adams, Rob Hunden ATTACHMENT 5 2.5 Packet Pg. 90 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Potential Locations 41 ATTACHMENT 5 2.5 Packet Pg. 91 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Potential Locations 42 Site Location Scenario Fit Mountain Vista Drive and Summitview Drive 1 and 2 Mountain Vista Drive and Giddings Road 1 and 2 East Vine Drive and West 1-25 Frontage Road 1 and 2 East Mulberry Street and Greenfield Court 1 and 2 (no future expansion) East I-25 Frontage Road and East Prospect Road 1 and 2 (no future expansion) East 1-25 Frontage Road, south of Mountain Vista Drive 1 and 2 (no future expansion) ATTACHMENT 5 2.5 Packet Pg. 92 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) Potential Locations 43 Site Location Scenario Fit East 1-25, south of East Vine Drive 1 East 1-25 Frontage Road at Mulberry and Cloverleaf Way 1 East 1-25 Frontage Road, north of East Vine Drive 1 ATTACHMENT 5 2.5 Packet Pg. 93 Attachment: Powerpoint Presentation (8186 : Sports Complex Facility Feasibility Study) DATE: STAFF: August 13, 2019 Josh Birks, Economic Health Director Jeff Mihelich, Deputy City Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Economic Health Strategy Update. EXECUTIVE SUMMARY The purpose of this item is to provide Council with an overview and update of the City's economic health strategy. In addition, the item will provide information about current activities led by the Economic Health Office that tie to Council's priorities: • Strategies that create community jobs • Small business plan Based on the information provided, Council will have an opportunity to discuss and refine the above priorities. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have feedback on the current Economic Health Strategy and focus on Economic Resilience? 2. Does Council have any additional clarification of the two priorities highlighted in tonight’s materials? a. Strategies that create community jobs (Talent) b. Small business plan (Support) BACKGROUND / DISCUSSION Introduction: The City implements a variety of programs and services focused on preserving and enhancing economic health and resiliency. Prior to and during the mid-2000s, the economy was not a specific focus. City efforts centered on constructing and maintaining high-quality community assets such as parks, trails, and open space. The economic downturn of 2001-2003 triggered by a bursting of the technology sector bubble created an impetus for the community and City Council to embrace a new direction on the economy. City Council collaborated with the Economic Vitality and Sustainability Action Group (EVSAG), which made recommendations on how to balance the community’s value of stewardship and quality of place against engagement in economic health efforts. City Council refined and adopted several of the EVSAG recommendations in 2005 as part of an Economic Action Plan. Shortly after adoption the first staff person was hired to focus on Economic Health. Since 2005 the Economic Health Office has continued to grow and evolve to a team of seven full time professional staff supported by two hourly administrative staff focused on three primary programmatic areas. History: Since 2005 the City has continued to evolve its thinking and approach to Economic Health (Attachment 1): • 2005 to 2012: Focus on individual economic health projects (e.g., support of Avago, now Broadcom, expansion; and support of Rocky Mountain Innovation Initiative, now Innosphere) that intended to increase the number of primary jobs within the community; 3 Packet Pg. 94 August 13, 2019 Page 2 • 2012: Updated the Economic Action Plan with the first Economic Health Strategic Plan (EHSP) that shifted the focus to a broader set of programs intended to aid in supporting a healthy and resilient economy; • 2015: Revised the EHSP to reflect membership in the Sustainability Services Area (SSA) further broadening the focus of the Economic Health Office. This updated included five thematic focus areas to support the community’s efforts to achieve Economic Health and Resilience: o Community Prosperity - Employment opportunities exist across the income and education/skill spectrums, o Grow Our Own - Our economic ecosystem fosters the development of new and creative industry, o Place Matters - A balanced built and natural environment, o The Climate Economy - Businesses adopt to climate change by staying in our community and leverage community carbon reduction goals to develop new products and services, and o Think Regionally - A region that partners to address economic issues which extend beyond municipal boundaries • 2017 to Present: The Economic Health Office (EHO) has organized itself into three working groups to deliver on the thematic focus areas from the 2015 EHSP: o Business Engagement - Focused on supporting a positive relationship between the business community and City (Program Manager, a Senior Specialist, and a Specialist), o Redevelopment - Encourage sustainable redevelopment through strategic partnership with the development community (Program Manager, a Senior Specialist, and hourly administrative support), and o Innovation Ecosystem - Generate new economic activity by supporting innovation and entrepreneurship (Climate Economy Advisor) • 2017 to Present: EHO in reaction to feedback from the community and the Baldrige process offered to lead the organizations systematic approach to improving business engagement convened the Business Engagement Action Plan core team and executive committee leading to a broad strategy: o Increase Awareness: internally and externally of business engagement efforts and available resources, o Remove Barriers: improve access for business to City services and resources, and o Improve Alignment: improve consistently within the City when working with local businesses. On-Going Evolution: EHO staff remains committed to continuous improvement of programs, services, and systems to support and encourage economic resilience in our community. To that end, the EHO began to re-evaluate its own efforts and metrics in mid-2018. The result is a refinement of the EHO mission and work towards the first ever broad economic health goal for the organization. • Vision: Promote a healthy sustainable economy reflecting community values (consistent with the original vision adopted as part of the 2005 Economic Action Plan), • Mission: Shape a resilient economic future (refinement to provide focus to EHO programs and services) • Goal: Increase economic resilience of the community (by TBD percent) by 2030 (first ever goal of its kind for the organization). The EHO feels a strong and clear goal is essential to determine whether the efforts of the organization to support a resilient economy are successful. The EHO continues to refine the definition of economic resilience and build an index (a collection of data points combined into a single measure) that accurately captures the community’s definition of economic resilience reflecting our collective values. More work on this will be shared with Council in the coming months. Economic Resilience: What is it? How to Measure? In attempting to develop a local definition of economic resilience, EHO staff uncovered several definitions from a wide variety of sources. A few of the most notable are summarized below: • “The investment in business, social, built and natural environments that creates increasing prosperity for all, 3 Packet Pg. 95 August 13, 2019 Page 3 now and into the future.” - International Economic Development Council’s Sustainability Advisory Committee • “Ability of an economy to support a defined level of economic production indefinitely” - Thwink.org • “The economic pillar of sustainability is where most businesses feel they are on firm ground. To be sustainable, a business must be profitable.” - Investopedia These definitions provide a variety of perspectives to consider economic resilience. EHO staff, working with regional partners, have defined two key economic outputs that strongly influence local economic resilience. These economic inputs include: • Strength - The ability of existing businesses and industry sectors to weather the natural cycles of an economy and remain productive and profitable; and • Diversity - The breadth of available employment opportunities and industry sectors within a given geographic area that support the continued evolution of the economy. When these two key outputs of the economy are nurtured and enhanced, EHO and its regional partners hypothesize that the economy becomes more resilient. However, the question remains: How the community can know its efforts are supporting a more resilient economy? Meaning the efforts enable the continued success of local businesses, support abundant employment opportunities for individuals, lead to income growth across socio- economic cohorts, and ultimately increase community wealth. EHO staff, in consultation with regional partners and through academic research, theorizes that there are three primary measures useful in evaluating resilience. Each of these primary measures combines several data points, and when combined into a single measure provide an index of the overall economic resilience of a local economy. These measures work at three different levels: (1) the individual or single property; (2) at the business or district level; and (3) the industry or community level. As stated from a business perspective, these three measures include (as a side note, these same measures can be stated from an industry perspective, e.g., “An Industry can…”): • A Business Can Start Here - Businesses find it easy to start their business within the local economy having access to a wide variety of support services. o Measured by: Business Start-up Volume, Business Survival Rate (past the five-year mark), Business Environment (as understood through survey data), etc. • A Business Can Thrive Here - Businesses find it easy to secure labor, access capital, and grow within the local economy. o Measured by: Business Affordability (combination or tax rates, utility rates, utility reliability, labor costs, etc.), City/Business Relationship Index, Talent Availability Index, etc. • A Business Can Renew Here - Property owners find it easy to reinvest in their property. o Measured by: Property reuse index, Redevelopment Ratio, Land Availability, etc. Economic Resilience: Current Efforts As stated above, the EHO has evolved into three working groups each of which is focused on a key programmatic area supporting the goals of the EHSP and increased economic resilience (Attachment 2). These programmatic areas are summarized below: Innovation Ecosystem: • Desired Outcome - New Economic Activity through innovation and entrepreneurship • Programmatic Areas: o Climate Economy - Supporting the transition of businesses in the face of climate change within our community and enabling the leverage of the coming economic shift into new products, services, and opportunities. o Infrastructure and Programs - Sponsorship of key partners, such as Innosphere, Larimer County Small Business Development Center, and Start-up week. o Triple Helix - Coordination and collaboration between the public sector, private sector, and 3 Packet Pg. 96 August 13, 2019 Page 4 academic and research institutions. Business Engagement: • Desired Outcome: A positive relationship between the City and the business community • Programmatic Areas: o Engagement - Support the organization in developing business engagement plans and continuing EHO’s engage directly with businesses. o Collaboration & Alignment - Alignment with regional partners to deliver a consistent approach to economic resilience across programmatic areas (e.g., efforts supporting Talent 2.0, etc.). o Access to Support - Continuing and developing services that directly address challenges and barriers experience by local businesses (e.g., development of a revolving loan fund, direct assistance of primary employers, access to data, etc.). Redevelopment: • Desired Outcome - Sustainable development through strategic partnerships • Programmatic Areas: o Urban Renewal - Implementation of this state-enabled tool to identify, remediate and prevent the spread of blight - enabling optimized economic productivity from the community’s limited land supply. o Public Finance - Management and refinement of City policy and implementation of a wide range of public finance tools (e.g., Metro Districts, General Improvement Districts, Business Improvement Districts, and special financing solutions for specific projects). o Internal Support and Engagement - Participate in interdisciplinary teams - ranging from planning efforts (e.g., City Plan and Subarea plans) to prioritization of capital funds and projects to ensure support of the optimized utilization of available land. Council Priorities: After the Council retreat in May 2019, several priorities have been refined and adopted by City Council (see Resolutions 2019-076) on July 2, 2019. EHO will lead the implementation of two of the priorities: (a) Strategies that create community jobs; and (b) Small Business Plan. The above overview of EHO efforts and history of the City’s approach to Economic Health provides useful context to further refine these two priorities. Strategies that create community jobs: What we heard from Council so far: • The City does not create jobs rather helps create an environment in which businesses can grow and create jobs • The quality of community amenities, infrastructure, and operating costs has an impact on the business community and therefore job creation • Concerns existing about the workforce development gaps and support of all members of the community having access to the resources necessary to advance their own career • A need to focus on and ensure alignment of local workforce to employer needs Area of focus: Talent Development The Fort Collins Area Chamber of Commerce, in partnership with the City and other partners, has developed a comprehensive analysis and plan to address talent development in the community. This report is called Talent 2.0 (Attachment 3). Talent 2.0 identified three areas of focus for workforce development areas: • Access - Support of employers to find, attract, and retain needed talent • Alignment - Align education and workforce resources more closely with the business community and local talent pool. • Barriers - Address structural issues that serve as barriers to a secure talent pipeline. 3 Packet Pg. 97 August 13, 2019 Page 5 EHO staff in partnership with the Chamber, Larimer County, and others has begun the implementation of many of the recommendations from Talent 2.0. Small Business Plan: What staff has heard from Council so far: • Recognition that past Council’s have prioritized outreach and support of Small Business • A need to understand the learnings from the Small Business Survey • A desire to enhance small business connection to support services • A component that includes both workforce and equity Area of focus: Support and Resource Access. EHO staff appreciates the on-going emphasis on small business support by Council. Businesses with between one and one hundred employees make up 98 percent of all firms in Fort Collins. These same businesses employ 47 percent of the workforce and provide 40 percent of the total community wages. Finally, businesses with between 51 and 100 employers had the largest increase in average compensation in recent years at 19%. Making small business a significant economic driver. In 2018, EHO conducted a small business survey that was focused on understanding the challenges small businesses face within Fort Collins and opportunities for the City to support addressing the challenges (Attachment 4). Businesses identified a host of challenges, including: • The cost of doing business • Competition in the market • Sales and use tax Businesses have a desire to: • Engage more with the City • Weigh in on policy decisions • Access to training and development opportunities ATTACHMENTS 1. Excerpt of 2012 Economic Health Strategic Plan - Evolution of Fort Collins Approach (PDF) 2. Economic Health Strategic Plan Overview Map (PDF) 3. Talent 2.0 Final Report Summary (PDF) 4. Small Business Survery Summary Report (PDF) 5. Innosphere Economic Impact Infographic - 2018 (PDF) 6. Innosphere Scaleup Program and Startup Program Overview (PDF) 7. Business Engagement Action Plan (PDF) 8. Larimer County Small Business Development Center - Performance Measures (PDF) 9. Powerpoint Presentation (PDF) 3 Packet Pg. 98 City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 3 INTRODUCTION INTRODUCTION Fort Collins enjoys an economic, social, and environmental vitality that is the envy of many communities its size. The high quality of place attributed to Fort Collins comes from the lively historic downtown and the city’s impressive parks, trails, and open space networks. These community assets make Fort Collins an attractive place for both a well educated workforce and diverse industries. Fort Collins includes a wide array of economic engines, such as Poudre Valley Health System, Hewlett Packard and Woodward-Governor, employing almost 13,000 workers representing a diverse economic base. Combine these economic engines with a major land grant university in Colorado State University and the result is a burgeoning culture of entrepreneurship. This innovation ecosystem has produced a number of home-grown companies, whose products now reach markets across the world, including, among others, New Belgium Brewery, Otterbox, and Envirofit. The City implements a variety of programs and services focused on preserving and enhancing economic health and resiliency. Prior to and during the mid-2000s, the economy was not a specific focus. City efforts centered on constructing and maintaining high-quality community assets such as parks, trails, and open space. The economic downturn of 2001-2003 triggered by a bursting of the technology sector bubble created the impetus for City Council to embrace a new direction on the economy. City Council created the Economic Vitality and Sustainability Action Group, which made recommendations on how to balance the community’s value of stewardship and quality of place against engagement in economic health efforts. City Council revised and adopted the recommendations and formed them into the 2005 Economic Action Plan. More recently, the City of Fort Collins embarked on the Plan Fort Collins initiative to update City Plan, the City’s comprehensive plan. The revisions of the comprehensive plan expanded greatly on the role and linkage of economic health in the community to the other six focus areas in the comprehensive plan. The revised version of City Plan evolved the thinking regarding economic health and articulated a new focus on health and resiliency. This Economic Health Strategic Plan is an extension of the evolution begun in the City Plan. It focuses on encouraging local business activity and efficient use of land to achieve the goal of a healthy resilient economy. (The Economic Health Evolution is highlighted on the following page.) In the past seven years, the Economic Health Office (EHO) has completed many of the items in the 2005 Action Plan, including a target industry study, a sales tax analysis tool, hiring an economic staff lead, improving the development review process, and creating an economic health communication plan. It has also adopted the principles and policies set forth in the City Plan. ATTACHMENT 1 3.1 Packet Pg. 99 Attachment: Excerpt of 2012 Economic Health Strategic Plan - Evolution of Fort Collins Approach (8176 : City of Fort Collins, CO TIP Strategies, Inc. Theory Into Practice 4 INTRODUCTION The Evolution of Economic Health 2005 ECONOMIC HEALTH VISION “A healthy economy reflecting the values of our unique community in a changing world.” ECONOMIC VALUES 1. The primary keys to our unique identity and economic health are:  The natural environment  Old Town / Downtown  Colorado State University  Culture and the arts 2. We value to Poudre R-1 Schools, Front Range Community College, and our other educational institutions and the quality education they provide. 3. Sustainability and economic health are strengthened through community partnerships and collaborations. 4. We value the next generation of citizens and their quality of life as much as our own. 5. We value businesses that contribute to the economic, environmental, social, and cultural health of our community. 6. Supporting innovation and growing businesses from within are important to economic health. 7. We value our existing businesses and the prospect of welcoming new businesses. 8. We value a City organization that is:  Proactive about our economy  Responsive to our business concerns 9. Municipal services contribute to making Fort Collins a great and visionary city and depend on a healthy economy that fuels a reliable revenue stream. KEY STRATEGIES  Diversify the economy  Be proactive  Form partnerships  Balanced approach 2010 ECONOMIC HEALTH VISION A healthy and resilient economy: 1. Diverse jobs that enable citizens and businesses to thrive 2. Reflects the values of our unique community in a changing world 3. An innovative, creative, and entrepreneurial atmosphere 4. Strong partnerships and collaboration with the private sector educational institutions, and other organizations. PRINCIPLES AND POLICIES 1. Pursue development of a vibrant and resilient economy that reflects the values of our unique community in a changing world.  Support job creation  Maximize retail sales tax revenue  Prioritize essential infrastructure/capital facilities  Target the use of incentives to achieve community goals 2. Support the growth of the innovation economy to set the stage for business development, job creation, and a thriving entrepreneurial environment.  Support targeted industry clusters  Support an innovative economy  Develop economic partnerships  Develop the assets to support entrepreneurship ***WORKING DRAFT*** Economic Health Office Strategic Plan 2019 ***WORKING DRAFT*** VISION: Promote a healthy sustainable economy reflecting community values. *Taken from the City of Fort Collins Strategic Plan, 2014 MISSION: Help shape a resilient economic future. EHO BHAG: By 2030 Fort Collins will be more resilient (by TBD amount). [Based on Community Level Indicators grouped into an Economic Resiliency Index] OUTCOME 3 Redevelopment: Targeted redevelopment delivers sustainable reinvestment in Fort Collins. Can Renew... Metric: Property Reuse Metric: Private Investment in Redevelopment Metric: Regional Investment in Infrastructure OUTCOME 1 Innovation Ecosystem: Collaboration, innovation and entreprenuership creates new economic activity in Fort Collins (Diversity). Can Start... Metric: Career Development Metric: Business Starts & Survivability Metric: Industry Development OUTCOME 2 Business Engagement: A positive relationship between businesses and the City supports a stronger Fort Collins economy. Can Sustain... Metric: Education Attainment & Alignment Metric: Support Resource Access Metric: Industry Connections STRATEGY 3.2: Optimizing land availability for community needs STRATEGY 1.1: Foster a robust business environment that is more resilient to shocks and stresses STRATEGY 1.2: Invest & develop effective infrastructure, programs, and • TALENT 2.0|WORKFORCE STRATEGY FORT COLLINS – LOVELAND MSA TOM STELLMAN CAROLINE2017 ALEXANDER FEBRUARY ATTACHMENT 3 3.3 Packet Pg. 102 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) INTRODUCTION 1 ATTACHMENT 3 3.3 Packet Pg. 103 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) We have over 20 years of experience in over 200 unique communities, across 38 states & 4 countries. ATTACHMENT 3 3.3 Packet Pg. 104 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) SERVICES STRATEGIC PLANNING WORKFORCE ASSESSMENT ECONOMIC ANALYSIS Image credit: DSC_0110 by Bri Weldon via Flickr (CC BY 2.0) ATTACHMENT 3 3.3 Packet Pg. 105 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) Auburn, WA – Economic Development Strategy Austin, TX – Workforce Master Plan Fort Campbell, KY – Regional Economic Diversification Strategy Fort Worth, TX – Economic Development Strategy Green Bay, WI – Economic Development Strategy Kern County, CA – Regional Economic Diversification Strategy Massachusetts Development Authority – Defense Industry Diversification Strategy Minneapolis-St. Paul, MN – Core City Districts Strategy Northern Iowa Corridor – Economic Development Strategy Northwest Florida – Economic Development Strategy Oregon Talent Council – Workforce Study & Investment Strategy Savannah River Site, SC – Consequences Analysis South Carolina I-77 Alliance, SC – Labor Study & Target Industry Alignment Washington Military Alliance - Defense Industry Diversification Strategy CURRENT & RECENT PROJECTS ATTACHMENT 3 3.3 Packet Pg. 106 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) #2 NATIONAL TRENDS 2 ATTACHMENT 3 3.3 Packet Pg. 107 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) Recessions Compared Sources: U.S. Bureau of Labor Statistics, Current Employment Statistics (total nonfarm employment, seasonally adjusted); NBER (recession dates); New York Times (format) 93 94 95 96 97 98 99 100 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 Number of months until all jobs "regained" RECESSIONARY EMPLOYMENT TRENDS Peak employment = 100 1980 1974-1976 1981-1983 1990-1993 2001-2005 2007-2014 (May 2014 = 100.1) 78 months ATTACHMENT 3 3.3 Packet Pg. 108 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) Net Job Gains/Losses by Metropolitan Statistical Area The Geography of Jobs Area ATTACHMENT 3 3.3 Packet Pg. 109 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) THE GEOGRAPHY OF RECOVERY Source: U.S. Bureau of Labor Statistics, Current Employment Statistics; TIP Strategies Cumulative Change in Employment Since the Beginning of the Great Recession ATTACHMENT 3 3.3 Packet Pg. 110 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) A JOBLESS RECOVERY? Source: Bureau of Economic Analysis, Bureau of Labor Statistics. COMPARISON OF REAL GDP TO EMPLOYMENT 2008 to 2015, cumulative change since 2008 ATTACHMENT 3 3.3 Packet Pg. 111 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) THE HOLLOWING OUT OF THE MIDDLE Sources: U.S. Bureau of Labor Statistics, Current Employment Statistics (total nonfarm employment, seasonally adjusted); NBER (recession dates); New York Times (format) OCCUPATIONAL GROWTH BY WAGE LEVEL 2007 to 2015, indexed to 2007 ATTACHMENT 3 3.3 Packet Pg. 112 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) EVIDENCE OF TALENT SHORTAGE Source: Manpower 2016 Talent Shortage Survey. 46.0% 0% 10% 20% 30% 40% 50% 60% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 US Global PERCENT EMPLOYERS REPORTING DIFFICULTY FILLING JOBS 2006 to 2016 ATTACHMENT 3 3.3 Packet Pg. 113 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) TOP 10 JOBS EMPLOYERS ARE HAVING DIFFICULTY FILLING Source: ManpowerGroup's 2016 Talent Shortage Survey GLOBAL 1. Skilled Trades 2. IT Personnel 3. Sales Representatives 4. Engineers 5. Technicians 6. Drivers 7. Accounting & Finance Staff 8. Management/Executive (Management/Corporate) 9. Production Operators/Machine Operators 10. Secretaries, PAs, Receptionists, Administrative Assistants, & Office Support Staff UNITED STATES 1. Skilled Trades 2. Drivers 3. Sales Representatives 4. Teachers 5. Restaurant & Hotel Staff 6. Accounting & Finance Staff 7. Nurses 8. Laborers 9. Engineers 10. Technicians ATTACHMENT 3 3.3 Packet Pg. 114 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) CHANGING DEMOGRAPHICS Sources: TIP Strategies, U.S. Census Bureau (NP2014_D1) “Working-age” defined as 18-66 (average planned retirement age based on April 2014 Gallup poll. 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2015 2020 2025 2030 2035 2040 2045 2050 COUNTER FORCES • Advancement of retirement age • Relaxed immigration restrictions • Technology reduces employment needs • Out-sourcing of labor to cheaper markets 2027 PROJECTED NET ANNUAL CHANGE IN THE US WORKING-AGE POPULATION ATTACHMENT 3 3.3 Packet Pg. 115 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) John A. Rogers, University of Illinois, F. Seitz Materials Research Laboratory Google MANUFACTURING HEALTH CARE ENTERTAINMENT TRANSPORTATION DISRUPTIVE TECHNOLOGY Joh JohnA nA n A .R Rooogggeeerrsss , U niversit i ityy of f Il Illliin ois i , F . S eit it z M ate t rialls i RResear ch h ATTACHMENT 3 3.3 Packet Pg. 116 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) By 2020, the US economy is expected to create 55 million job openings: 24 million of these will be entirely new positions. -Georgetown Center on Education and the Workforce ATTACHMENT 3 3.3 Packet Pg. 117 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) 47% of US employment is at-risk of automation over next 20 years. - “The Future of Employment,” Dr Michael Osborne and Dr Carl Frey, University of Oxford. ATTACHMENT 3 3.3 Packet Pg. 118 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) 1. Technical feasibility 2. Development & deployment cost 3. Cost/availability of labor 4. Benefits beyond labor substitution Predictors of Automation Source: McKinsey & Company. ATTACHMENT 3 3.3 Packet Pg. 119 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) KEY WORKFORCE CHALLENGES 3 ATTACHMENT 3 3.3 Packet Pg. 120 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) CHALLENGE #1: HIRING DIFFICULTY From 2010 to 2015, the regional economy added almost 20,000 jobs but only 11,000 workers. Combined with low unemployment and high underemployment, the hiring environment is already difficult. ATTACHMENT 3 3.3 Packet Pg. 121 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) 169 180 0 25 50 75 100 125 150 175 200 2010 2011 2012 2013 2014 2015 Thousands 147 167 0 25 50 75 100 125 150 175 200 2010 2011 2012 2013 2014 2015 Thousands GROWTH TRENDS: JOBS VS LABOR FORCE TOTAL EMPLOYMENT 2010 TO 2015 CIVILIAN LABOR FORCE 2005 TO 2015 +20K Sources: EMSI, Bureau of Labor Statistics. +11K ATTACHMENT 3 3.3 Packet Pg. 122 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) COMMUTING PATTERNS Source: U.S. Census Bureau, Local Employment Dynamics. 80,552 Live and work in Fort Collins - Loveland 43,594 Commute to jobs in Fort Collins - Loveland from outside Of the 124,146 workers that held jobs in Fort Collins - Loveland in 2014, 35 percent lived outside the geo type here. 51,235 Live in Fort Collins - Loveland and commute to jobs outside Of the 131,787 residents employed in 2014, 39 percent commuted to jobs outside the geo type here. ATTACHMENT 3 3.3 Packet Pg. 123 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) UNEMPLOYMENT Source: U.S. Bureau of Labor Statistics via Moody’s. COMPARATIVE UNEMPLOYMENT, AVERAGE ANNUAL RATES 2005 TO 2015 3.2 0.0 2.0 4.0 6.0 8.0 10.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 ANNUAL AVERAGE RATE MSA Colorado United States ATTACHMENT 3 3.3 Packet Pg. 124 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) LABOR FORCE PARTICIPATION RATE 66.5 67.6 67.4 62.9 60 65 70 MSA Laborshed Colorado United States Sources: U.S. Bureau of Labor Statistics via Moody’s. COMPARATIVE LABOR FORCE PARTICIPATION RATES 2014 Civilian Labor Force, % of Total ATTACHMENT 3 3.3 Packet Pg. 125 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) RECRUITMENT CHALLENGES • Difficulty attracting: • Talent from Denver and from coasts • C-Level executives • Young professionals • Reliable workers to fill jobs with high physical requirements – warehouse, waste collection, construction laborers • Workers that can pass the drug test – most often fail due to marijuana use • Low-wage services – food services, housekeeping ATTACHMENT 3 3.3 Packet Pg. 126 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) RETENTION CHALLENGES • Underemployment means that overqualified workers are always looking for a better job • Generational expectations • Young professional gap ATTACHMENT 3 3.3 Packet Pg. 127 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) EVIDENCE OF UNDEREMPLOYMENT Sources: EMSI, ACS 1-yr estimates EDUCATIONAL REQUIREMENTS OF JOBS VS ATTAINMENT OF LABOR FORCE Fort Collins – Loveland MSA United States 26% 44% 10% 20% 3% 18% 33% 45% 0% 25% 50% 75% 100% Less than High School High School or Equivalent Some College Bachelor or Higher Labor Force Jobs 28% 40% 12% 21% 9% 25% 31% 36% 0% 25% 50% 75% 100% Less than High School High School or Equivalent Some College Bachelor or Higher Labor Force Jobs ATTACHMENT 3 3.3 Packet Pg. 128 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) PIPELINE CHALLENGES • Awareness of resources • Employer engagement & input • Finding instructors – nursing, computer science • Student choices • Awareness of non 4-year opportunities • Choice of majors at CSU and UNC ATTACHMENT 3 3.3 Packet Pg. 129 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) MOST POPULAR MAJORS 0 200 400 600 800 1,000 1,200 Liberal Arts and Sciences/Liberal Studies (24.0101) Business/Commerce (52.0101) Nursing Assistant (51.3902) Kinesiology and Exercise Science (31.0505) Emergency Medical Technician (51.0904) Psychology (42.0101) Business Administration & Management (52.0201) Automotive Mechanics (47.0604) Registered Nursing/Registered Nurse (51.3801) Speech Communication and Rhetoric (9.0101) Human Development and Family Studies (19.0701) Multi-/Interdisciplinary Studies, Other (30.9999) Computer and Information Sciences (11.0101) English Language and Literature (23.0101) Welding Technology/Welder (48.0508) Biology/Biological Sciences (26.0101) Sociology (45.1101) History (54.0101) Fine/Studio Arts (50.0702) Liberal Arts and Humanities (24.0199) Economics (45.0601) Educational Administration (13.0499) Journalism (9.0401) Music (50.0901) Political Science and Government (45.1001) Associates or less Bachelors Graduate Degree Sources: National Center for Education Statistics, IPEDS Survey. TOP 25 LARGEST FIELDS OF STUDY, 3-YEAR AVERAGE ATTACHMENT 3 3.3 Packet Pg. 130 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) STRUCTURAL CHALLENGES • Housing affordability at all income levels • Purchase & rental • Quality childcare for affordable prices • Transportation/mobility: traffic makes Denver farther away ATTACHMENT 3 3.3 Packet Pg. 131 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) CHALLENGE #2: CONTINUED TIGHTENING Over next 5 years, employers will have at least 28,000 openings to fill. The labor force adds only about 2,000 to 3,000 workers each year. A continuation of this trend would leave an estimated shortfall of about 5,000 workers. ATTACHMENT 3 3.3 Packet Pg. 132 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) PROJECTED DEMAND 5,021 3,056 2,568 9,010 4,655 3,502 Low Middle High New Replacement EMPLOYMENT BY SKILL LEVEL, FORT COLLINS-LOVELAND MSA 2016 TO 2020 +28,000 OPENINGS (7,000 each year) Sources: EMSI. ATTACHMENT 3 3.3 Packet Pg. 133 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) 1,101 2,076 2,112 3,016 2,380 0 1,000 2,000 3,000 4,000 2011 2012 2013 2014 2015 CHANGE IN LABOR FORCE Sources: U.S. Bureau of Labor Statistics via Moody’s. CHANGE IN LABOR FORCE, FORT COLLINS-LOVELAND MSA Year-over-year change, # ATTACHMENT 3 3.3 Packet Pg. 134 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) POPULATION GROWTH Sources: Colorado State Demography Office. POPULATION PROJECTIONS OF RESIDENTS 16+, BY AGE YEAR-OVER-YEAR CHANGE, 2015-2020 2.8 3.3 3.0 2.9 3.0 2.2 2.0 2.2 2.4 2.4 0 1 2 3 4 5 2016 2017 2018 2019 2020 Thousands Working Age (16 - 64) Senior (65+) ATTACHMENT 3 3.3 Packet Pg. 135 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) CHALLENGE #3: AGING WORKFORCE In many key occupations, more than 25% of the workers are 55 or older. With the wave of likely retirements, employers will need to start succession planning now in order to prepare for the loss of those key individuals. ATTACHMENT 3 3.3 Packet Pg. 136 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) AGING WORKFORCE AGE DISTRIBUTION OF REGIONAL WORKERS FORT COLLINS-LOVELAND MSA Sources: EMSI. ATTACHMENT 3 3.3 Packet Pg. 137 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) TOP MIDDLE SKILL JOBS M IDDLE-SKILL (More than high school, less than four years) 49-9071 Maintenance & Repair Workers, General 27% W 7% 29-1141 Registered Nurses 27% W 5% 53-3032 Heavy & Tractor-Trailer Truck Drivers 28% W 7% 51-9111 Packaging & Filling Machine Workers 15% 2% 49-9041 Industrial Machinery Mechanics 24% W 3% 43-3031 Bookkeeping, Accounting, & Auditing Clerks 32% W 9% 29-2061 Licensed Practical/ Vocational Nurses 26% W 5% 51-4041 Machinists 27% W 5% 41-9022 Real Estate Sales Agents 39% W 13% W 49-1011 First-Line Supvsr., Mechanics, Install, & Repair 27% W 4% 11-9141 Property, Real Estate, & Community Assoc. Mgrs. 40% W 14% W 43-6013 Medical Secretaries 29% W 6% 47-4011 Construction & Building Inspectors 38% W 11% W 51-8031 Water/WW Treatment Plant Operators 30% W 6% 13-2021 Appraisers & Assessors of Real Estate 32% W 9% SOC CODE DESCRIPTION DEMOGRAPHICS % 55+ Years % 65+ Years Sources: EMSI. ATTACHMENT 3 3.3 Packet Pg. 138 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) TOP HIGH SKILL JOBS HIGH SKILL (Four-year degree or above) 25-1099 Postsecondary Teachers 30% W 11% W 11-1021 General and Operations Managers 23% W 4% 13-2011 Accountants and Auditors 25% W 6% 25-2021 Elementary School Teachers, Except Special Education 28% W 5% 25-2031 Secondary School Teachers, Except Special and Career/ Tec 28% W 5% 13-1111 Management Analysts 38% W 12% W 25-2022 Middle School Teachers, Except Special and Career/ Techni 28% W 5% 25-3099 Teachers and Instructors, All Other 25% W 8% 21-1014 Mental Health Counselors 25% W 6% 21-2021 Directors, Religious Activities and Education 39% W 13% W 29-1069 Physicians and Surgeons, All Other 31% W 9% 21-2099 Religious Workers, All Other 45% W 20% W SOC CODE DESCRIPTION DEMOGRAPHICS % 55+ Years % 65+ Years Sources: EMSI. ATTACHMENT 3 3.3 Packet Pg. 139 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) SUMMARY OF FINDINGS • The current labor market is already strained • Demand outstrips supply • Mismatch in education & skills • Difficult to recruit and retain from outside of the region • Structural issues (transportation, childcare & housing) exacerbate recruitment challenges • The situation is likely to worsen • Projected demand still more than supply • Aging workforce will create more openings ATTACHMENT 3 3.3 Packet Pg. 140 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) TALENT 2.0 3 ATTACHMENT 3 3.3 Packet Pg. 141 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) THE RESPONSE: TALENT 2.0 • Sets out a common set of goals and strategies • Align efforts and resources • Amplify reach and impact ATTACHMENT 3 3.3 Packet Pg. 142 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) FRAMEWORK Access Actively support employers in finding, attracting, and retaining the talent that they need Alignment Align education and workforce resources more closely with business community and the local talent pool Barriers Collectively address structural issues that serve as barriers to a secure talent pipeline ATTACHMENT 3 3.3 Packet Pg. 143 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) INCREASE ACCESS 1. YOUR PLACE: NORTHERN COLORADO. Design and launch a talent campaign to support the recruitment of prospective employees to the Fort Collins-Loveland MSA. 2. LOCAL TALENT. Help connect regional employers with residents and residents with better economic opportunities. 3. AWARENESS. Build greater awareness of the region’s job opportunities and strong employment base. 4. HR BEST PRACTICES. Coordinate with the Workforce Center, the Northern Colorado Human Resources Association, Mountain States Employers Council, and others to hold workshops on talent management topics for employers and HR professionals. 5. RETENTION. Partner with employers to coordinate solutions that address common barriers to talent retention. ATTACHMENT 3 3.3 Packet Pg. 144 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) THE UNDEREMPLOYMENT PROJECT • OUTREACH. Reach out to underemployed individuals through employers and directly • INVENTORY. Catalog resumes and skills of underemployed • COACH. Provide coaching to these individuals to find better jobs • RETRAIN. Connect them to retraining as needed to align skills to opportunities • RE-EMPLOY. Assist them in finding better opportunities ATTACHMENT 3 3.3 Packet Pg. 145 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) PLAN FOR SUCCESS(ION) • ASSESS. Invest in tools that can help companies assess their needs and craft a transition strategy • EDUCATE. Hold workshops on topics relevant to succession planning • KNOWLEDGE-SHARE. Create peer working groups that meet quarterly to provide a forum for peers to share information and best practices as well as to work through issues together • TRAINING. Create program to train workers to move up • EXPERTISE. Train or hire an expert that can provide technical assistance one-on-one to companies ATTACHMENT 3 3.3 Packet Pg. 146 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) IMPROVE ALIGNMENT 1. BUSINESS ENGAGEMENT. Streamline business engagement and input mechanisms. 2. EDUCATION & TRAINING CAPACITY. Support education and training institutions in strengthening the “home grown” talent pipeline. ATTACHMENT 3 3.3 Packet Pg. 147 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) SECTOR PARTNERSHIPS (SUPPORT FOR ESTABLISHED INITIATIVE) • SURVEY. Partner with existing sector organizations to conduct annual employer surveys to document needs in critical occupations • ADVISE. Coordinate with sector partnerships to create a more centralized business advisory function. • LAUNCH. Monitor the needs of other industries, and facilitate the launch of new partnerships as needed. ATTACHMENT 3 3.3 Packet Pg. 148 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) FRONT RANGE CAREER ACADEMY (EXPANSION OF CURRENT INITIATIVE) • EXPAND. Enhance FRCC’s current high school programs • Small learning environment, experiential learning, dual enrollment • COLLABORATION. Foster collaboration between school districts, community college, and key employers • ALIGNMENT. Enhances industry-education alignment and is an asset for talent & business attraction ATTACHMENT 3 3.3 Packet Pg. 149 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) REMOVE BARRIERS 1. ADVOCATE. Advocate around key structural issues. 2. EDUCATE. Organize a series of symposiums on each topic to educate relevant audiences, generate discussion about possible solutions, and identify a core group of champions that will lead taskforces. 3. ACHIEVE. Assemble taskforces of champions and “doers” to move solutions forward. ATTACHMENT 3 3.3 Packet Pg. 150 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) ADVOCACY • Continue to advocate for I-25 Corridor improvements • Advocate on behalf of FRCC to secure funding for the Allied Health School • Incorporate affordable housing as an issue on the local advocacy agenda ATTACHMENT 3 3.3 Packet Pg. 151 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) IMPLEMENTATION STRUCTURE Steering Committee Education & Training Partners Public Sector Partners Industry Partnerships & Associations Philanthropy ATTACHMENT 3 3.3 Packet Pg. 152 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) STEERING COMMITTEE ROLES • Maintain strategic coherence • Manage fundraising and outreach efforts • Provide additional project management and support ATTACHMENT 3 3.3 Packet Pg. 153 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) MEASURING PROGRESS & IMPACT • Growth parity: comparison of employment growth and labor force growth • Labor force participation • Unemployment rate • Underemployment: educational requirements of jobs and educational attainment of workers • Workforce efficiency: the percent of employed residents who live and work in the region • Wages: cost-of-living adjusted wages • Income equity: the ratio of the earnings of the 90th percentile to the 10th percentile ATTACHMENT 3 3.3 Packet Pg. 154 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) ATTACHMENT 3 3.3 Packet Pg. 155 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) QUESTIONS ? ATTACHMENT 3 3.3 Packet Pg. 156 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) THANK YOU ATTACHMENT 3 3.3 Packet Pg. 157 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) 2905 San Gabriel Street Suite 205 Austin, TX 78705 512.343.9113 www.tipstrategies.com Image Credit :Austin_Texas by Ed Schipul via Flickr (CC BY-SA 20) ATTACHMENT 3 3.3 Packet Pg. 158 Attachment: Talent 2.0 Final Report Summary (8176 : Economic Health Strategy Update) National Research Center, Inc. 2955 Valmont Road Suite 300 | Boulder CO 80301 www.n-r-c.com | nrc@n-r-c.com City of Fort Collins Small Business Survey: Summary of Results September 2018 ATTACHMENT 4 3.4 Packet Pg. 159 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Acknowledgements and Survey Methods The Economic Health Office from the City of Fort Collins contracted National Research Center Inc., (NRC) to collect the data found in this report. Businesses received three mailings, one week apart. The first mailing was a postcard invitation to the online survey, containing a link to the survey in English or in Spanish. The next mailing was a reminder letter and invitation, with a final postcard mailing. The postcards and letter were signed by the Economic Health Director. About 9% (184) of the 2,000 mailed invitations were returned because the business address was vacant, or the postal service was unable to deliver the survey as addressed. Of the remaining 1,816 businesses that received the invitations to participate, 194 completed the survey (all in English), providing an overall response rate of 11%. The margin of error (95% confidence interval) is plus or minus 7 percentage points around results for all respondents (194). From the data provided by NRC, the Economic Health Office provided interpretation, hypothesis, data uses, and next steps. ATTACHMENT 4 3.4 Packet Pg. 160 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Contents Introduction ...................................................................................................................................... 1 Key Findings ......................................................................................................................................6 Where do we go from here? .............................................................................................................10 Open Comments ............................................................................................................................. 11 ATTACHMENT 4 3.4 Packet Pg. 161 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) ATTACHMENT 4 3.4 Packet Pg. 162 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 1 Introduction This is the first statistically valid small business needs assessment survey conducted by the City of Fort Collins and led by the Economic Health Office (EHO). The purpose of the assessment is to identify gaps, challenges, and opportunities experienced in the Fort Collins small business climate. The Economic Health Office also conducts a National Business Survey, open to all business sizes, measuring their perception of City services. GOALS OF THIS SURVEY • Identify emerging issues, areas of strength, and needed improvement in the small business community. • Identify challenges and opportunities for specific industries and demographics within the small business community. • Determine if small businesses know about existing resources and where to go. Do specific populations and industries lack knowledge of existing support programs? • Better understanding of the small business community. To create this survey, multiple small businesses and partner organizations were invited to test the instrument and provide feedback before it was deployed to the 2,000 randomly selected businesses with 1-100 employees. Three think-alouds (sitting next to a survey respondent as they take the survey to obtain raw, unfiltered feedback) were also conducted to ensure we are asking the right types of questions based on our anticipated outcomes. WHY THIS SURVEY DATA IS IMPORTANT: • Business with 1-100 employees make up 98% of all firms in Fort Collins • Fort Collins small businesses employ 47% of the workforce and provide 40% of the total wages • Businesses in the 51-100 employee category had the largest increase in average compensation (2016-2017 comparison shows a 19% increase) *Source: Quarterly Census of Employment and Wages (QCEW) CHARACTERISTICS OF RESPONDENTS It is important to understand the characteristics of the respondents to better understand and interpret the survey results: • 76% reported as being the owner, CEO, or Founder • 52% reported having 1-5 employees • 42% have been in business more than 20 years, and 27% have been in business 11-20 years • 33% reported being woman-owned, and 39% reported being family-owned ATTACHMENT 4 3.4 Packet Pg. 163 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Top 5 Industry Categories Represented Total Responses Professional, scientific, and technical services (engineering, research) 23 Finance/insurance/real estate/legal 21 Medical/dental 21 Retail 18 Restaurant/bar 14 All industries 163 For this survey, those that identified as women, minority, and veteran-owned businesses are defined as disadvantaged. It is important to note that certain demographic and geographic categories have low response numbers and therefore the ability to draw statistical conclusions about those groups is reduced. Groups that fall into this category are: minority-owned businesses (11 responses), veteran-owned businesses (6), businesses “Around CSU (6), Harmony Corridor (4), and N. College (6)”, businesses that are less than a year old (2), Nonprofits (9), and businesses that had a revenue of $5,000,000 or more (9). As you read the responses around support programs and types of support businesses sought help for, we believe the profile of the businesses really tell a story. For example, you’ll read most businesses can access capital when needed and many businesses went right to a lawyer or accountant for help rather than free resources like the Small Business Development Center, Workforce Center, or Economic Health Office. Businesses that have been in operation in the 11-20 and more than 20-year mark have different needs and different avenues to access support and resources than younger businesses. WOMEN AND MINORITY-OWNED BUSINESSES ACCESS TO CAPITAL Data from the survey suggests that access to capital programs could be most beneficial to woman- owned businesses, in fact 67% or 43 respondents who expressed interest in an access to capital program reported as being woman-owned. Minority-owned businesses might also benefit, but the number of responses in this category was low and it was difficult to draw concrete conclusions. BUSINESS SUPPORT AND RESOURCES When these questions were dissected by demographic, there weren’t any large discrepancies in disadvantaged businesses compared to non-disadvantaged when it comes to where they pursued ATTACHMENT 4 3.4 Packet Pg. 164 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 3 support. The largest difference was in support for business growth 11% more, 49% from 38% than non-disadvantaged businesses. The survey did show differences where disadvantaged businesses went to pursue support as well as the types of support programs, they would find valuable: • Disadvantaged businesses visited a private consultant or business coach far more than non- disadvantaged, 60% compared to 34%, whereas non-disadvantaged businesses utilized a lawyer, accountant or financial advisor and business networking/trade associations more than disadvantaged businesses, 47% compared to 31%. • 71% or 41 respondents who expressed interest in training and professional development support programs if offered by the City were woman-owned. • Disadvantaged businesses visited the Small Business Development Center more - 17% compared to 2% - than non-disadvantaged, as well as their bank or financial institution - 29% compared to 17% - than non-disadvantaged and friends or family members - 29% compared to 19%. ATTACHMENT 4 3.4 Packet Pg. 165 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) INDUSTRY SEGMENTS In addition to identifying gaps and opportunities for specific demographics, there is also interest in identifying specific needs for our industry types. Industries who sought support in more categories than others included: • finance/insurance/real estate/legal • medical/dental • professional/scientific/technical. These three industry types also chose private consultants or business coaches as well as lawyer/accountant or financial advisor the most for support. Respondents could report an increase or decrease in both revenue and employee counts over the last 12 months. The largest industry categories that reported increased profits in the last 12 months included Technology at 60% and Finance/insurance/real estate/legal at 52%. Only four total respondents said they were expecting fewer employees, and not a big enough sample to break it down by industry type to pick up any red flags. In terms of interest in various programs, Buy Local was popular across the board in all industries, especially personal services, retail and restaurant, and construction. Buy local programming was also popular across all demographics. This is another topic that is often mentioned anecdotally and was written as a budget offer for future programming, however, it was not funded in the 2019-2020 budget cycle. OPEN MIC Survey respondents were asked two open-ended questions at the end of the survey: “How can the City of Fort Collins better engage with small businesses?”, and “Is there anything else you’d like the City to know about your business and your needs?” The most frequently mentioned topics in the comments section included business assistance and support with 19 comments and were one of the most frequently mentioned categories as well as City regulations around sales, use, and personal property tax and communication around major policy changes. These subject areas received 21 comments. WHAT THEY TOLD US: • There is an overwhelming need for business support. Technical assistance, marketing support, and networking opportunities specific to their business segment or industry were mentioned or requested. • Peer network opportunities are valuable to engage with other managers and CEOs in the community. • There is a desire for increased engagement with City leadership, Council, and Planning and Development, including direct networking opportunities, business visits, and more listening sessions. • Businesses expressed a large interest in opportunities to participate in discussions around policy, regulation, tax rate changes and for government to stay out of the way. ATTACHMENT 4 3.4 Packet Pg. 166 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 5 WHAT LEFT US SCRATCHING OUR HEADS? Smaller companies (1-5 employees) saw less value in access to capital programs than mid-to-large companies did. Anecdotally, we are often asked about access to capital options for startups and new businesses and know this is a challenge across the country. In turn, these businesses had more interest in a buy local program. Based on these responses, we can only hypothesize that the businesses that responded this way may be boot strapping or aren’t able to think about expansion yet. Buy Local appears to be a broader business issue across the community from these respondents whereas access to capital is more important to specific demographics. ATTACHMENT 4 3.4 Packet Pg. 167 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Key Findings The 2018 Fort Collins Small Business Survey, conducted by National Research Center, Inc., was developed to provide the City with information from and about small businesses located in Fort Collins, Colorado. Results offer insight about business owners’ and managers ’outlook on local business environment and their perspectives of the business support they receive or would like to receive. All private sector-type businesses (stores and restaurants, but also professional services like accountants, lawyers, doctors, etc.) within Fort Collins with 100 or fewer employees were eligible to participate in the survey, a random list of 2,000 were selected to receive an invitation to the survey. These businesses received three mailings, one week apart, starting July 3, 2018, with invitations to participate in the survey online. About 9% (184) of the 2,000 mailed invitations were returned because the business address was vacant, or the postal service was unable to deliver the invitation as addressed. Of the remaining 1,816 businesses that received the invitations to participate, 194 completed the survey, providing an overall response rate of 11%. The margin of error (95% confidence interval) is plus or minus 7 percentage points.  Local small businesses seek out support related to growing their business. Business owners indicated the types of business support, from any source, they had recently sought for their business. About 4 in 10 had looked for assistance with growing their business, while about a third had pursued marketing and/or public relations aid. Other types of assistance most commonly sought, indicated by about a quarter of respondents each, included recruiting talent, improving business efficiency/productivity and assistance with tax laws and tax payments. The sources most frequently sought after by small businesses for assistance included private consultants or businesses coaches and professional staff (lawyers, accountants or financial advisors), each mentioned by about 40% of respondents. Other sources used included the Internet, peer networking or mastermind groups, business networks and trade associations, friends or family members and mentors. Only seven percent had pursued assistance from the City of Fort Collins. ATTACHMENT 4 3.4 Packet Pg. 168 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 7  Business owners see benefit from most support programs, if offered by the City, including buy local campaigns and training assistance. Five types of support programs the City of Fort Collins could potentially provide were described, and respondents rated how beneficial each would be to their business. A “Buy Local” program was considered at least somewhat beneficial by about 7 in 10 small businesses surveyed. Financial assistance for special circumstances or disruptions and training and professional development grants were deemed at least somewhat beneficial by about two-thirds of those participating in the survey. Access to capital programs would be considered at least somewhat beneficial by about 6 in 10 small businesses, and about 4 in 10 would find façade improvement grants at least somewhat beneficial.  Most owners and managers expect business profitability to be the same or higher in the next 12 months. About 4 in 10 businesses said their profitability would be about the same in the next 12 months and nearly half expected their profitability would be higher. The outlook on profitability was somewhat brighter than the current; about 4 in 10 owners said current profits were higher than they had been 12 months ago and close to 5 in 10 said profits had remained the same. About 14% of small businesses reported their profitability was lower currently compared to 12 months ago, and only 7% thought their profitability would be lower in the upcoming 12 months. ATTACHMENT 4 3.4 Packet Pg. 169 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update)  Owners and managers do not expect a decrease in workforce in the next 12 months. Roughly two-thirds of businesses said they were employing about the same number of people currently as they had 12 months ago, and a similar proportion felt they would be employing about the same number of people in the next 12 months. Of those who had experienced change in workforce numbers, more were employing a greater number of people currently than they had 12 months ago (28%) compared to those who were employing fewer people (7%). Likewise, a much greater proportion of businesses expected an increase in employees in the upcoming 12 months (34%) than a decrease (2%). ATTACHMENT 4 3.4 Packet Pg. 170 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 9  The factors having the greatest positive impact on small businesses were recreation and wellness, access to data, education and access to peer networking. Small businesses participating in the survey identified whether a variety of types of factors, including market forces and quality of the community, had a positive or negative impact on their business. Of the positive factors listed above, peer networking and networking opportunities were referred to most often in the open comments section of the survey as something business owners and managers want to see more of.  The cost of doing businesses, competition in the market, and sales and use tax have the greatest negative impact on small businesses. The factors named above were those indicated by the greatest proportion of small businesses as having a negative impact with 76% stating the cost of doing business has a negative impact, with 58% stating competition in the market has a negative impact, and 48% stating sales and use tax; others included parking, City-specific regulations and housing affordability. Most small businesses that need it report being able to obtain adequate financing for inventory, expansion and other working capital needs. Among the 56% of businesses needing financing for inventory, about 9 in 10 reported being able to obtain it. Of the 63% of small businesses in need of financing for expansion, about three-quarters reported being able to find it. And among the 73% that needed financing for other working capital needs, about 8 in 10 reported being able to get it. ATTACHMENT 4 3.4 Packet Pg. 171 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Where do we go from here? As the first time for this survey, the results are valuable and will be used to help direct engagement strategies, support City staff work plans, and could be included in future budget offers. With that said, this survey only represents 194 businesses out of thousands in the Fort Collins community. The Economic Health Office will continue to ask questions of businesses and work with our partner organizations to best support small businesses. Additionally, we will seek to: Enhance the way we engage with businesses by: • Building business engagement plans for City departments to ensure involvement in policy changes are happening. • Incorporating businesses as a stakeholder into existing outreach and communication tools, understanding businesses may need a different approach and strategy than citizens. • Creating a communication strategy with our partner organizations to share training and development opportunities. This includes sharing share our own story and the resources of our partner organizations more – only 7% reported going to the City Economic Health Office or Small Business Development Center for support. An even smaller amount reported visiting the Larimer County Workforce Center. • Continuing business listening sessions across the community and business site visits from the Economic Health Office and City leadership. • Continue outreach and engagement strategies for disadvantaged business owners to get a better understanding of their needs as it is not fully represented in this survey. • Share the data – the Economic Health Office will present the findings to business associations and other external groups interested in discussing the results. • Conduct follow-up conversations and focus groups – some businesses provided their contact information for further discussion. • Collaborate and share with other internal City departments to continue to identify and improve services and guide workplans. • Identify ways to educate the differences in City sales tax and County property taxes in response to multiple comments in this area. • Share our findings with the Regional Small Business Administration Office and the Minority Business Office to spotlight the needs of Fort Collins to our state and federal offices. • Launch a Revolving Loan Fund, targeting disadvantaged businesses with access to capital options, including women-owned businesses. To learn more about the work of the Economic Health Office, visit fcgov.com/business or call 970-416-2294 ATTACHMENT 4 3.4 Packet Pg. 172 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 11 Small Business Survey – Open Comments Category Raw Comments Business Assistance and Support 1. Assist small business to make a profit. 2. Assistance with purchasing a permanent building, so that ever-increasing rent doesn't destroy local small businesses. 3. Better support to survive construction projects. Better outreach to new businesses to let us know what support and services are available. BETTER HIGH SPEED INTERNET. 4. Co-sponsor networking event 5. Create networking opportunities 6. Definition of what city considers 'small business' is too broad. The real small businesses do not seem served at same level as bigger companies. 7. Help with rising cost of labor costs and mitigating competition in specific areas. 8. Helping people with capital needs. 9. I believe where small business sometimes find an abyss is in the permitting and or growing process taking on a new building or changes where large business or chains really do have an advantage of more resources. I would like help to determine the size of the market for my products and services and 10. Maybe a group/task force/think tank of home-based business owners and entrepreneurs 11. More affordable ways to promote the businesses that are VERY small like mine. 12. Provide compensation when a business has to move due to toxic mold in their present location. Require the housing authority to investigate any requests for mold investigation. 13. Provide financial assistance for growth. We had to unexpectedly move, and it was very hard to find an affordable commercial space to rent and I was unable to obtain a business loan for tenant finish so had to pursue a loan from a private source. 14. Small business incubators supported by the city. See i.e. http://www.oregon4biz.com/Innovate-&- Create/R&D-Business/Incubators/ Potential tie to the university. Roll out gigabit Internet service ASAP! (Thanks, this is awesome!) 15. The city should not be a bank! Offering money to business that aren't holding their own will just make the city be listed in their bankruptcy creditors. Allow business that should grow and continue - grow. Those that are run poorly need to fade away and not be nursed along. 16. Connect us to larger businesses and employers for free/low cost training and TA (i.e. if the City hosts a workshop for managers, allow small businesses (especially non-profits) to attend. 17. Hard for service companies to borrow expansion capital - 18. I've been an entrepreneur in Ft. Collins for nearly 22 years. The cost of doing business is very high which affects what we can pay our employees. If there were tax incentives for hiring like there are for buying a washing machine, we'd be better off. 19. Would love to see a small business / startup shared office space or similar. ATTACHMENT 4 3.4 Packet Pg. 173 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Regulations 20. Cut back on regulations and notify business's when a similar business wants to locate within 2 miles, not just 500 feet. The city also needs to send its business to different vendors and not just a certain select few if the vendors are competitive. 21. If regulation changes will be discussed, I want to be involved in panel 22. Keep regulations to a minimum; send out renewal notices for home occupation licenses. 23. Limit the number of similar businesses 24. No incentives to business or redevelopment 25. Not sure. High/punitive Local Specific Use taxes seem to be a hot button for many colleagues. 26. Reduce regulations Streamline all government Reduce taxes Don’t compete with private business Make Ft Collins a business-friendly place! 27. Reduce the amount of bureaucracy. Stop trying to social engineer all outcomes. Be a support system for business, not a hindrance 28. Seriously need to have friendly property tax discussions, better pricing on utilities. Also, too much intervention with rules and regs with landscaping, irrigation and lighting when building facilities. We were forced to pay for many expensive upgrades that did not save money, time, energy or water. 29. Stay out of the picture. Let the consumer drive the market so well-run business grow and another fade away. Don't promote business grow that don't deserve it. 30. Stay out of the way. 31. Stop allowing big business growth without making them provide enough parking. 32. Tax relief, transient relief, fund the police better, get out of the way 33. Lower taxes and more affordable rent and housing for individuals and small business. 34. -*Lower personal property tax rates* - As these rates stand, I have less money to re-invest in equipment/technology for my business and when I do manage to get new equipment, I'm penalized for it by having to pay additional personal property tax. This inhibits my ability to stay competitive, pay for training, or take home more money that would be re-invested in the Ft Collins economy. -A huge part of long-term success for many small businesses is commercial real estate ownership. Ft Collins real estate and building permit and building regulations and property taxes are such that it is nearly-impossible to purchase or build space that would be appropriate for a successful customer- based business. -Put a baseline threshold on sales and use tax. For example, if you owe less than $50/quarter for sales and less than $50/quarter for use, no tax is due. Data gathering for these taxes takes a lot of time and my business typically owes minimal amounts of both taxes. -Stop burdening businesses with increased utility costs. Now that you're raising rates on prime hours for residential, decrease rates during the day for businesses. That way businesses may have a chance of paying employees more to help offset the residential rate hike. I have 3 female employees with small children. They work all day. Their kids generate dirty clothes that need to be washed, their kids need to eat, and they need to spend quality time with their kids. When do they do these things during the week except when they get home from work? And then they need to pay exorbitant rates for Air Conditioning and other utility use. I realize the rate increase is supposed to decrease utility use, but there is a limit on how much a family can reduce their electric and water use, and I suspect most families will end up paying more utility fees even after decreasing use. 35. Decrease or eliminate use tax and some of the repetitive taxes that are imposed on businesses. These are extremely limiting to growth. 36. I am very hopeful that with the new SCOTUS ruling allowing states to collect sales tax on online purchases, that the state will require collection of city and county taxes at the same time. This will help our local budgets and level the playing field for brick and mortar small businesses. This is not a new tax, just collecting taxes that were not paid by online shoppers. 37. Keep building department fees affordable and reduce the time it takes to get a building permit. 38. Keep taxes low 39. The Liquor Occupation Tax is having a negative impact on my business. 40. Why is the city council worried about national issues? The City council should be more focused on the city issues. Like reducing the overabundance of regulations that keep small businesses from growing in Fort Collins. ATTACHMENT 4 3.4 Packet Pg. 174 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Fort Collins Small Business Survey 2018 Page 13 Comm- unication 41. Better communication of available resources. 42. Continue to ask for their input. Make the effort to reach out. 43. Develop ways that city planners and city officials can interact directly and honestly with small business owners. Create a small business quarterly scorecard which measures attributes which attract, retain, and encourage startups of small businesses in ALL industries. 44. I am working to get more involved with community events but struggle to connect with these events, is there a way to have the city reach out to businesses to connect us with such things? 45. I liked that you had the listening events earlier this year with the Mayor and City Manager. The biggest single thing the City can do is quit trying to be Boulder. If you keep on current path you will continue to drive up housing prices and make it harder to attract employees that can afford to live here. 46. It seems that things are getting better with the presence of city managers and employees at the DBA meetings. Direct delivery and mailed announcements about meetings, etc. is really helpful. 47. More information sent by email about new regulations and rules. 48. Recognition that nonprofits are contributors to our city even if not fiscal contributors. Have awareness of impacts of decisions, like utilities usage in peak hour, can drastically impact a nonprofit or small business. 49. The city does a pretty good job at communication about projects and support for communication between businesses. Sometimes this is just communicating 'you are f#$*ed'. 50. Town Hall meetings with businesses, networking opportunities, leadership training, meet and greets with city council and staff, community liaison and invites to government and business work study groups 51. visit us, acknowledge, support 52. Let business know about small business opportunities, training and support 53. Sometimes the city can be very 'deaf' when it comes to business issues. A better dialogue is needed. I believe the city staff tries very hard, but most of them have never run a business or understand the challenges associated with doing so. Parking 54. 1. Picture parking problems 2. Get the festival's away from Old Town and put them in City Park We pay taxes for our buildings in Old Town and we deserve to make a living with our stores in Old Town... stop treading on our space in Old Town. You're chasing our customers away in Old Town with your festivals and parking problems. People won't come down here to shop cuz it's too crowded and there's no place to park. You've been doing this for the 18 years we've been in business and then you tell us that you do it for us, you don't do it for us you do it for yourself and now you're selling beer for- profit, are you kidding me. Take all that to City Park! 55. The market share I currently have. On street parking and visibility for entrance and egress is an issue for my specific location. I have spoken to engineering/traffic regarding this problem. 56. Keep working on parking. Keep working on public transportation 57. Parking and utility efficient upgrade incentives for landlords especially for old town buildings 58. Safe & convenient parking Low sales tax 59. Work to improve parking, access and transportation. 60. I am concerned about the city's parking space requirements being reduced on new developments and redevelopments. We have a big problem in our area where landlords do not have adequate parking for their employees and customers. Then they park in my lot or on the street directly in front of my store, so I can't see around them for exiting my lot. And they block the view and signage of my building. I know of several recent developments where parking is totally inadequate. It's a real hardship on the existing businesses in the area. Everyone has a car, even most college students. Just because you wish they would use public transportation doesn't mean they will. 61. Parking has become a severe problem as the limited parking I had was taken for additional bike lanes. My customers complain that this is the biggest setback in choosing my establishment. My ATTACHMENT 4 3.4 Packet Pg. 175 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) business is not the only one suffering from this as it's become a neighborhood problem. We support a bike friendly environment but don't want to be forgotten in the process. My employees can't park, my customers can't park. Customers end up parking in other business's spots creating animosity between business owners which is not in Fort Collin's nature, we should all support one another. It makes doing business much, much harder. Thank you for your attention -Campus North Laurel / Mason St Block Professional Development, Training, and Workforce 62. Encourage the hiring of people with disabilities and promotion of this untapped workforce. 63. Management Training offered through the City 64. The cost of living in Fort Collins is extremely challenging for many. Consider creating a registry of LOCAL employers offering quality part-time, second household income jobs and a clearinghouse of background checked potential employees looking for WORK. Also, there is an epidemic of young mothers and kids trapped in horrible domestic situations whom cannot escape due to lack of affordable housing and childcare. Consider starting a network of background checked single mothers who may be looking for co-housing arrangements, safe and free (reciprocating) childcare and employment. Localism and Buy Local 65. A push for local & a push for home grown businesses to succeed just like the big guys. Thank you! 66. In our case it would be to good hire us for services. At this point seems like most is going to one place. In other words, it would be nice to spread work and sales around. 67. Relax the signage and banner regulations. No neon? Really? No moving signs? Reinstate the sales tax retailer's fee for our bookkeeping efforts. Shop at my store. Not on Amazon. 68. Build some more streets so that not everything is purchased online. 69. I would hope the City uses local small businesses first and foremost before going outside the area. I would love opportunities to work with the city on design work. Partner Organizations and External Resources 70. I have not pursued finding capital for fear of not being able to pay back. I am not sure of resources. The SBDC has helped with marketing. I am struggling finding a referral source for my Physical Therapy Practice. 71. I think that working with the SFCBA has been wonderful and always feel that while I don't always get an answer that I'm hoping for, there is always someone at the City willing to at least listen. 72. I am grateful for SBDC, but unsure of other resourced Fort Collins has. General Engagement and Other 73. I think working better with small/medium sized business owners is a must... Also, helping to retain key employers is very important. 74. More Transparency. Employ city staff with experience 75. The City should be more considerate of businesses and business owners. Some of the City staff are arrogant and some rules do not make sense. The City is to serve the citizens and some of the staff and elected officials have forgotten who is serving who. Businesses and citizens support the City activities through taxes and fees and it is frustrating that some initiatives do not respect that relationship. 76. Appreciative of the hard work your staff and council do for businesses, people and the environment. We would love to be more engaged and don't know where to start. 77. Governments and the press tend to give more attention to businesses that have a facility and/or storefront. Home-based businesses are feeling ignored. 78. I am making a lot more money and am happier since I opened locations outside of Fort Collins. While in Fort Collins, it was common to be taken advantage of financially, and less-so in my other locations. Customers are more irritable in my FC location. I think the high cost of living is stressing ATTACHMENT 4 3.4 Fort Collins Small Business Survey 2018 Page 15 residents out and causes them to compromise on their values. The bike trails and close proximity to the mountains and DIA are working for Fort Collins, but something needs to be done so people can live in FC while only working 1 job. The quality of life is poor when you must work 2 or 3 jobs to scrape by, as many have to. 79. We've been in business 30 years and it's getting tougher and tougher to make any money. It's true if you don't grow you die. 80. Your questions on the impact on my business made no sense at all. i.e. Utilities did you mean cost of utilities, reliability of or availability of. If the cost is high it would have a negative effect, but the City cost is relatively low, so the effect is positive. So how do I answer this question. Very poor survey. The City has wasted it money with NCR. Childcare, Housing, and Social Services 81. Absence of affordable, accessible childcare is critical. 82. As we approach 100 employees it is getting harder and harder to find qualified people that can afford to live in Fort Collins. Even though we start almost everyone at $15/hr. or higher plus provide benefits, like health care, 401K and flex scheduling, most of our new hires are living in Wellington or Greeley where it is more affordable. At some point we will have to take a hard look at the economics of staying in Fort Collins VS. moving our company to a more affordable and business friendly environment. I love Fort Collins and want to stay but the more liberal and radical the City becomes the more we will have to consider what’s best financially for our companies’ future. 83. Our clients live within the County. Our caregivers find it difficult to find affordable housing within the same county they work. • Constructi on and Street Disruption 84. Consideration and some compensation for street closures and ongoing construction. It is extremely difficult for a small business to recover after consistent construction causing road closures and minimal parking for customers. Also, too many events are held directly in Old Town, the square and its side streets. Downtown businesses should sign a petition or vote on whether or not we want these events in Old Town as we are the people directly affected. Receiving an announcement that our street will be shut down for a whole weekend for some kind of festival and having no say is disrespectful to the business owners who pay huge rents to be downtown. Fort Collins has plenty of lovely and convenient locations for all of the many events that do not all have to be downtown. 85. We need to know what can be done to encourage customers to come to our store despite the five months of intersection construction we are suffering. Infrastructure and Built Environment 86. I would say that my most frustrating aspect of dealing with the City is the limitations related to signage and visibility. The trees are so critical to the hobby that my business depends upon but they are too low and cover most monuments in the Midtown area. How can customers find us if they can't see us? Environmen- tal and Climate 87. (My business) It is striving to be green Rent and Lease 88. Rent around old town is very high ATTACHMENT 4 3.4 Packet Pg. 177 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) Bioscience Medical Device Colorado’s Science & Technology Incubator | Venture Capital Fund | Office & Wet Lab Facilities innosphere ECONOMIC IMPACT REPORT 2018 national patents filed provisional patents filed patents issued full & part-time employees and FTE contractors 256 168 full-time 40 part-time 48 FTE contractors www.innosphere.org Innosphere works directly with Colorado’s research universities to advance technologies to commercialization. Supporting Startups & Scaleups with offices in Fort Collins, Boulder, Denver, and Castle Rock client companies served in these industries: 39 Innosphere Fund I Invested in 3 client companies: Aspero Medical Incident Response Technologies Catalyze Innosphere supported University Startups 12 in 2018 16 24 6 Graduating from Innosphere’s program is a significant business milestone such as raising capital, hiring talent, or accelerating top line revenue growth. Grants 3.9M Founder 788K VC 2.5M Strategics 6.4M Seed Stage 7.85M sources of capital $ 15M 23 companies raised total capital in 2018 All companies have raised STREAMLINING THE PATH TO SUCCESS FOR HIGH-TECH STARTUPS AND SCALEUPS INNOSPHERE is Colorado’s leading technology incubator accelerating the success of high-impact science and technology startups and scaleups. Innosphere’s program focuses on ensuring companies are investor-ready, connecting entrepreneurs with experienced advisors, making introductions to corporate partners, exit planning, and accelerating top line revenue growth. Once accepted into the program, companies receive ongoing support to ensure they’re getting the know-how to raise the right kind of capital and all the resources to grow. INNOSPHERE SUPPORTS HIGH-GROWTH COMPANIES IN THESE INDUSTRIES: BIOSCIENCE AND HEALTH INNOVATIONS x Medical Device x Digital Health  x Diagnostics ENERGY & ADVANCED MATERIALS x Sensors x Cyber x Transportation HARDWARE & ENTERPRISE SOFTWARE x Internet of Things x Software as a Service x AI and Big Data IS YOUR COMPANY THE RIGHT FIT FOR INNOSPHERE? While Innosphere supports companies at a variety of stages, experience shows we are best at serving Colorado-based businesses with highly motivated founder(s) and at least one team member working full-time on the enterprise. STARTUP PROGRAM CRITERIA: x Performed initial work to validate product meets specific market needs x Raised at least three to six months of working capital x Developed a working prototype SCALEUP PROGRAM CRITERIA: x Achieved a run rate of >$500k a year in sales x Secured Seed funding but may be looking for the next (Series A) raise x Seeking to sustain a growth rate in sales of 2-3x per year in the coming years THE APPLICATION PROCESS We’re excited your company is looking at Innosphere’s Startup or Scaleup program for support! Because we get to know companies’ individual goals and tailor a program around your specific needs, we know you’ll find that Innosphere’s services are unlike any other program. 1. Companies complete the online application on Innosphere’s website: Innosphere.org. 2. One-hour screening: Completed in person or by phone 3. Group meeting with several Innosphere staff to ensure your needs and our services are a match. 4. A successful screening process results in an offer to become a new Innosphere Client Company! Innosphere Main: 970.221.1301 Offices in Fort Collins, Boulder, Denver, and South Denver/Castle Rock Apply Online: www.innosphere.org Innosphere is a non-profit technology incubator and began serving startups in 1998 ATTACHMENT 6 3.6 Packet Pg. 179 Attachment: Innosphere Scaleup Program and Startup Program Overview (8176 : Economic Health Strategy Update) ACHIEVING OPERATIONAL EXCELLENCE Customer Discovery and Adoption Developing Your Sales and Marketing Strategies Cash Management Lean Manufacturing Strategies GROWTH STRATEGIES AND BUSINESS DEVELOPMENT x Growing Sales in Current Markets x Expanding to New Markets x Corporate Partner Connections x Developing Technology and Product Roadmaps TALENT ACQUISITION Mentors and Executive Advisors Advisory and Corporate Boards Key Hires Managing Culture and Your Leadership Skills CAPITAL AND FINANCE Investor Materials and Due Diligence Financial Modeling and Equity Modelling Planning Your Exit Strategy Preparing for Next Round of Funding THE TOOLS AND KNOWLEDGE FOR SCALING HIGH-TECH COMPANIES EXCLUSIVE PROGRAMS FOR CLIENT COMPANIES: STARTUP AND SCALEUP With more than 19 years of experience, Innosphere’s tested model has supported hundreds of companies in reaching their key milestones. Once accepted into the program, companies work with their Innosphere liaison to address and resolve specific issues. For a startup company, a common goal is to become investor-ready to secure the company’s first round of funding. For a scaleup company, a common goal is to accelerate growth in sales. While this goal can be simple, it often becomes more complex when considering hiring sales talent, investing in product development, and raising the capital needed to scale. We help you untangle these issues and focus on the key areas that will drive results for your business. Companies entering the incubation program work with experienced advisors, peer-groups, and their Innosphere liaison to develop a focus on these key areas of growth: MENTORS AND EXECUTIVE ADVISORS Finding experienced mentors to help scale your business is one of our highest priorities. We offer clients a host of networks and invaluable connections to others in your industry who have been there before. Innosphere’s program can connect you with several types of mentors and advisors, including: Executive Advisors from Industry Executives in Residence Corporate and Strategic Partners Directors experienced in all business functions Subject Matter Experts Expert Advisory Group (SAGE) CAPITAL IS CRITICAL TO THE SUCCESS OF CLIENT COMPANIES As a part of our Access to Capital program, we maintain an exclusive “Innosphere Investor Network” to match entrepreneurs with funding opportunities. The Investor Network is a group of active, accredited investors seeking highly-vetted, investment- ready opportunities in technology startup companies. More importantly, we guide companies through the critical steps of: Funding strategy refinement Pitching to investors Developing an exit strategy Introductions between your company and appropriate capital sources INNOSPHERE FUND: x Early-stage venture capital fund x Only available to Innosphere client companies that are qualified x Innosphere is a General Partner of the Fund ATTACHMENT 6 3.6 Packet Pg. 180 Attachment: Innosphere Scaleup Program and Startup Program Overview (8176 : Economic Health Strategy Update) Why is the City of Fort Collins focusing on Business Engagement? The City has identified two customer segments: residents and businesses. Businesses are a vital asset to our local community. Not only do businesses bring employment and innovation opportunities, they are a major contributor to our local non-profits and tax base. Business owners can also be a great resource and way to learn more about our residents, and the community at large. Small businesses (defined as companies with 1 – 100 employees) make up 98% of all businesses in Fort Collins and are vital to our local economy. Not a “One-Size-Fits-All” As with all residents, businesses seek to be a part of the conversation and feel respected. Local businesses are hungry for information and the opportunity to engage with the City. However, traditional engagement strategies that work for residents may not always work for businesses. For example, open houses may not reach key business stakeholders due to misalignment in timing, location, etc. City projects, such as a capital construction project, can have short-term impacts (lost/decreased revenue) to long-term implications (consumer spending habit changes). The mission of the inter-organizational Business Engagement Action Plan: • The City has a coordinated, City-wide Business Engagement Strategy • Improved business customer satisfaction • An enhanced relationship between the City and the business community. Three areas of opportunity have been identified: Increase Awareness Remove Barriers Improve Alignment FORT COLLINS IS MY BUSINESS ATTACHMENT 7 3.7 Packet Pg. 181 Attachment: Business Engagement Action Plan (8176 : Economic Health Strategy Update) BUSINESS ENGAGEMENT ACTION PLAN Auxiliary aids and services are available for persons with disabilities. V/TDD: 711 19-20933 For more information on the City of Fort Collins Economic Health Office, visit fcgov.com/business 2018 HIGHLIGHTS • Deployed the 1st Small Business Needs Assessment • Conducted the 2nd National Business Survey on City services • Created option in ACCESS Fort Collins for businesses • Began the development of the City of Fort Collins Construction Toolkit which includes a Business Resource Guide • Developed Walnut Street Case Study to highlight best practices of process improvements • Began updating Public Engagement Spectrum to include business engagement elements • Piloted Customer Relationship Management (CRM) tool with various City departments • Developed formal procedures for City Manager/Mayor and major employer visits • Coordinated internal process on future business surveys within various City departments • Coordinated internally with departments that regularly communicate with outside businesses so that communication is more consistent and streamlined • Restructured Development Review Team in Planning Department • Launched Construction Toolkit, Phase I (external) • Hosted four business listening sessions with City leaders (Harmony Corridor, West Elizabeth, Walnut Street, DBA) 2019 PRIORITIES • Piloting the development of Service Area Business Engagement Action Guides • Finalize development/integration of the Business Engagement Spectrum • Partner with Communications and Public Involvement Office to integrate businesses into upcoming public engagement training across organization • Highlight resource kits available to project managers • Pilot development of City-wide customer service training • Implement Construction Toolkit for capital projects and private development projects • Implement and refine use of Citywide CRM • Partner with CSU to pilot small business focus groups and programming • Launch Revolving Loan Fund to provide access to capital for small/disadvantaged businesses • Continue and refine coordination and communication within City services to provide businesses with information in a timely matter • Continue and refine development review improvement process Increase Awareness: increase awareness internally and externally of business engagement efforts and resources available Remove Barriers: improve access for businesses to City services and resources Improve Alignment: improve consistently within the City when working with local businesses Fort Collins Economic Advisory Board June, 2019 ATTACHMENT 8 3.8 Packet Pg. 183 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : High Quality Training High Quality Training Free Confidential Consulting Free Confidential Consulting Connection to Resources Connection to Resources www.LarimerSBDC.org Who We Are & What We Do Helping local businesses start, grow and prosper through street-smart business education and assistance. ATTACHMENT 8 3.8 Packet Pg. 184 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Colorado SBDC Timeline + SBA Formed + SBA Formed + SBA Partially funds SBDC and SCORE Networks + SBA Partially funds SBDC and SCORE Networks + Colorado SBDC Formed + FRCC hosts Larimer SBDC Center + Colorado SBDC Formed + FRCC hosts Larimer SBDC Center 1953 1970s 1987 www.LarimerSBDC.org ATTACHMENT 8 3.8 Packet Pg. 185 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : www.LarimerSBDC.org ATTACHMENT 8 3.8 Packet Pg. 186 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : 2019 Focused Services High Growth Potential Industry Specific •ScaleUp Smart Program •Strategic Direction/Digital Mrkt •Manufacturing Optimization •Financial Analysis •Retail •Restaurant/Food Products •Health & Wellness •Creatives •Non-Profits •Start-up Support •Business Planning •Finance\Accounting •Marketing\Sales General ATTACHMENT 8 3.8 Packet Pg. 187 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Consultant Skillsets and Experiences: Breweries Manufacturing B 2 B Market Research Business Valuation Marketing, Digital, Social Media Creative Micro Lenders e-Commerce Non-Profit Finance and Accounting Publishing Food products and Restaurants Quickbooks Franchising Retail Health & Wellness Sales Human Resources Service Intellectual Property Transportation ATTACHMENT 8 3.8 Packet Pg. 188 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : ATTACHMENT 8 3.8 Packet Pg. 189 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Training Classes Business Planning • Strategic and Business Planning to Meet Your Goals (3 weeks) • Creating a Simple Yet Effective Business Plan Marketing & Sales • Sorting through Social Media • Strategies for E-Commerce Success • Marketing and Branding Basics • Are You Charging Enough? • No Guts, No Gain Finance & Accounting • Lending Panels\Loan Preparation • Financials & Bookkeeping • TAXES: Get Informed & Organized • 3 Ways Financial Information Can Make Your Business Thrive • QuickBooks (Online and Desktop) • Defining Rates, Expenses and Income • Three Financial Reports to Help Manage Your Business Starting a Business • Essential Steps to Starting Your Business • Make It Official Other • 1099 workers • Buying or Selling a Business ATTACHMENT 8 3.8 Packet Pg. 190 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : ATTACHMENT 8 3.8 Packet Pg. 191 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : ATTACHMENT 8 3.8 Packet Pg. 192 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Attorney/Legal Graphic Design Bookkeepers Insurance Business Brokers Micro-lenders CPA/Accountant Social Media Digital/Website/SEO Video Production Resources: Professional Advisor Lists ATTACHMENT 8 3.8 Packet Pg. 193 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : www.LarimerSBDC.org 2015 to 2018 Business Education: 2015 2018 Client Count 606 948 FREE Consulting Hours 2549 4515 No. of Consultants 10 36 Classes/Training 69 101 Class Attendees 736 1282 ATTACHMENT 8 3.8 Packet Pg. 194 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : 2019 Focused Services High Growth Potential General •ScaleUp Smart Program •Strategic Direction/Digital Mrkt •Manufacturing Optimization •Financial Analysis •Retail •Restaurant/Food Products •Health & Wellness •Creatives •Non-Profits •Start-up Support •Business Planning •Finance\Accounting •Marketing\Sales Industry Specific ATTACHMENT 8 3.8 Packet Pg. 195 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Offering each month in 2019! www.LarimerSBDC.org Small Business After Hours Retail Creative Businesses Health & Wellness Restaurants & Food Products ATTACHMENT 8 3.8 Packet Pg. 196 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : 2019 Focused Services Industry Specific General •ScaleUp Smart Program •Strategic Direction/Digital Mrkt •Manufacturing Optimization •Financial Analysis •Retail •Restaurant/Food Products •Health & Wellness •Creatives •Non-Profits •Start-up Support •Business Planning •Finance\Accounting •Marketing\Sales High Growth Potential ATTACHMENT 8 3.8 Packet Pg. 197 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : ATTACHMENT 8 3.8 Packet Pg. 198 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Our Results - 2016-2018 Increased Sales Capital Infusion Businesses Started 137 1555 Jobs Retained 827 Jobs Created $31.7 M www.LarimerSBDC.org ATTACHMENT 8 3.8 Packet Pg. 199 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 2013 2014 2015 2016 2017 2018 % of Statewide Totals Minimum Acceptable Standard New Business Starts Jobs Created Jobs Retained Capital Formation Client Sales Growth Larimer SBDC - Economic Impact, % of State Total ATTACHMENT 8 3.8 Packet Pg. 200 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : 28% 60% 4% 3% 2% 3% 2017 Client Distribution Fort Collins Loveland Estes Park Wellington Berthoud Other ATTACHMENT 8 3.8 Packet Pg. 201 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • 65 local businesses/non-profits, $3M+ total checks provided. • Larimer grants were 50% of state total. • Program ended Feb 2019. www.LarimerSBDC.org “Recover Colorado”, disaster recovery grant: ATTACHMENT 8 3.8 Packet Pg. 202 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Larimer SBDC/LBDC Success Stories www.LarimerSBDC.org ATTACHMENT 8 3.8 Packet Pg. 203 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Owner: Anne Lance • Teaching Tree, a nonprofit with facilities in Fort Collins and Loveland, has provided quality child care since 1970, with much of this care supporting low- moderate income families. • Received business planning, financial, cost projections and organizational charts assistance from SBDC Teaching Tree Early Childhood Learning Center www.LarimerSBDC.org ATTACHMENT 8 3.8 Packet Pg. 204 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • Business recruitment • Personal finance/wealth planning • Give specific legal or tax advice • Much consulting for tech/IT companies. • Large businesses/corporations • Directly provide loans or incentives What We Don’t Do: ATTACHMENT 8 3.8 Packet Pg. 205 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : Larimer SBDC 2018 Funding Sources Federal SBA Grant 26% Front Range Community College 23% City of FC Budget Funding 12% Training Class Fees 10% Loveland City and Chamber 11% First National Bank 3% Other/Industry Sponsorships 9% Larimer County 6% $325K ATTACHMENT 8 3.8 Packet Pg. 206 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • Glenn Plagens - Promoted to Director of Business Resources and Rural Prosperity. • Joey Jenkins – Promoted to State SBDC Director. Statewide SBDC Changes: ATTACHMENT 8 3.8 Packet Pg. 207 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : ATTACHMENT 8 3.8 Packet Pg. 208 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : OEDIT Org. Chart OEDIT Director Betsy Markey Global Biz Development Michelle Hadwiger Tourism Cathy Ritter Biz Funding / Incentives Jeff Kraft Biz Support and Rural Prosperity Glenn Plagens Colorado Creative Industries Margaret Hunt TV & Film Donald Zuckerman Outdoor Recreation Nathan Fey SBDC State Director Joey Jenkins Minority Biz Office (MBO) Rosy McDonough Employee Stock RuralInitiative Prosperity Ownership ATTACHMENT 8 3.8 Packet Pg. 209 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • Terri - Promoted to Assistant Director. • Becky Douthit – Hired June 2018. Admin/Marketing, doing great. • Mike - Now reporting to Jean Runyon, FRCC Larimer Campus VP. Lar. SBDC Center Changes: ATTACHMENT 8 3.8 Packet Pg. 210 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • Oct 3rd NoCo Womens Conference. • Add SBDC Program Coordinator? • Latino coverage in Fort Collins. • Beef up Wellington, Berthoud, and Estes Park outreach and support. • Pursue additional center funding. • Push ScaleUp Smart program. 2019 Initiatives: ATTACHMENT 8 3.8 Packet Pg. 211 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : • www.larimersbdc.org • 970-498-9295 • Mike Oconnell • 970-215-2300 Thanks for this opportunity! ATTACHMENT 8 3.8 Packet Pg. 212 Attachment: Larimer County Small Business Development Center - Performance Measures (8176 : August 13, 2019 Economic Health Strategy Update Jeff Mihelich & Josh Birks, City of Fort Collins ATTACHMENT 9 3.9 Packet Pg. 213 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Direction Sought: 1. Does Council have feedback on the current Economic Health Strategy and focus on Economic Resilience? 2. Does Council have any additional clarification of the two priorities highlighted in tonight’s materials?  Strategies that create community jobs (Talent)  Small business plan (Support) 2 ATTACHMENT 9 3.9 Packet Pg. 214 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Agenda 3 Agenda: 1. Overview of Economic Health Strategy 2. Current Trend Highlights 3. Council Priorities 4. Next Steps ATTACHMENT 9 3.9 Packet Pg. 215 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Alignment 4 ATTACHMENT 9 3.9 Packet Pg. 216 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Vision, Mission, & Goal • Promote a healthy sustainable economy reflecting community values Economic Health Vision • Shape a resilient economic future. Economic Health Mission • Increase the economic resilience of the community (by XX percent) by 2030 Economic Health Goal 5 ATTACHMENT 9 3.9 Packet Pg. 217 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Northern Colorado Trends Jobs • Diverse economic base • Job growth is driving population growth Diversity • Low and increasing racial and ethnic diversity Population • Fastest growing region in the state • Weld will have larger population than Larimer by 2024 Income • Slowing income growth Source: Colorado Department of Local Affairs 6 ATTACHMENT 9 3.9 Packet Pg. 218 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Fort Collins Trends Employment • Job growth is strong, but underemployment is a concern Housing • Jobs are growing faster than housing, 1.25 jobs per housing unit • Average house prices increasing rapidly Labor Market • Tight labor market • Job growth outpacing workforce growth Source: City Plan Forces & Trends Report, 2018 7 ATTACHMENT 9 3.9 Packet Pg. 219 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Fort Collins Trends Development • Demand is greatest for commercial/mixed-use land Local Economy • Driven by education and healthcare Wages • Growing on average, concentrated in top 20% of earners Source: City Plan Forces & Trends Report, 2018 8 ATTACHMENT 9 3.9 Packet Pg. 220 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) What is Economic Resilience? 9 • “The investment in business, social, built, and natural environments that creates increasing prosperity for all, now and into the future.” - IEDC’s Sustainability Advisory Committee • “Ability of an economy to support a defined level of economic production indefinitely” – Thwink.org • “The economic pillar of sustainability is where most businesses feel they are on firm ground. To be sustainable, a business must be profitable” - investopedia ATTACHMENT 9 3.9 Packet Pg. 221 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Outputs Outcome Strength Diversity Industry Talent Engage- ment Data Economic Resilience Inputs 10 What is Economic Resilience? ATTACHMENT 9 3.9 Packet Pg. 222 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Measuring Resilience 11 Site Reuse Redevelopment Community Development Can Renew… ATTACHMENT 9 3.9 Packet Pg. 223 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) EHO Focus Areas 12 Innovation Ecosystem • Generate new economic activity by supporting innovation and entrepreneurship Business Engagement • Support a positive relationship between the business community and City Redevelopment • Encourage sustainable redevelopment through strategic partnership with the development community Resilience: Start, Sustain, Revive ATTACHMENT 9 3.9 Packet Pg. 224 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Innovation Ecosystem New Economic Activity Climate Economy Innovative Approaches Encourage Investment Enable Transition Infrastructure & Programs Innosphere SBDC Triple Helix Industry Cluster 3.0 Talent 2.0 13 ATTACHMENT 9 3.9 Packet Pg. 225 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Business Engagement Positive Relationship Engagement Direct Connectio ns Appreciati on Surveys Collaboration & Alignment Regional Alignment Talent 2.0 Airport Access to Support Revolving Loan Fund Direct Assistance Data 14 ATTACHMENT 9 3.9 Packet Pg. 226 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Redevelopment Sustainable Redevelopment Urban Renewal Plan Areas Projects Public Improvem- ents Public Finance Metro Districts GID/BID Special Financing Internal Support Planning Infrastruct- ure Special Projects 15 ATTACHMENT 9 3.9 Packet Pg. 227 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Council Priorities: What We Heard 16 Strategies that create community jobs: TALENT DEVELOPMENT • City doesn’t create jobs – creates environment • Impact of Community – Amenities, Infrastructure, Cost • Workforce Development Gaps • Alignment of local workforce to employer needs ATTACHMENT 9 3.9 Packet Pg. 228 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Talent 2.0 Overview Access Support employers in finding, attracting, and retaining needed talent Alignment Align education and workforce resources more closely with business community and local talent pool Barriers Address structural issues that serve as barriers to a secure talent pipeline 17 ATTACHMENT 9 3.9 Packet Pg. 229 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Talent 2.0 - Implementation Increase Access Your Place: Northern Colorado Connect Local Talent Increase Awareness of Opportunities Improve Alignment Business Engagement Education & Training Capacity Remove Barriers Advocate Educate Achieve 18 ATTACHMENT 9 3.9 Packet Pg. 230 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Council Priorities: What We Heard 19 Small Business Plan Support & Resource Access • Past Priority – Build on current efforts • Evaluate results of Small Business Survey • Enhance connection to support services • Workforce and equity component ATTACHMENT 9 3.9 Packet Pg. 231 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Small Biz Survey - Why data is important 20 Business with 1-100 employees make up 98% of all firms in Fort Collins Fort Collins small businesses employ 47% of the workforce and provide 40% of the total wages 2 Businesses in the 51-100 employee category had the largest increase in average compensation at 19% 1 3 ATTACHMENT 9 3.9 Packet Pg. 232 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) The Story Small businesses have a desire to: 21  Engage more with the City  Weigh in on policy decisions  Access training and development opportunities ATTACHMENT 9 3.9 Packet Pg. 233 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Where do we go from here? 22  Business engagement guides for departments  Convene survey participants and focus groups  Council district profiles and engagement plans  Storytelling  Incorporate businesses into outreach tools  Communication plan with our partners  Road shows and feedback Desire to engage Communication Access training & dev  Work with partner organizations to develop/communicate programming  Launch Revolving Loan Fund  Customer Service Training ATTACHMENT 9 3.9 Packet Pg. 234 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Role of Economic Health Office 23 ATTACHMENT 9 3.9 Packet Pg. 235 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Council Priorities: Next Steps 24 Continue Small Business Support action plan from the Survey Continue to support Talent 2.0 implementation 2 Consider program refinements 1 3 ATTACHMENT 9 3.9 Packet Pg. 236 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Direction Sought: 1. Does Council have feedback on the current Economic Health Strategy and focus on Economic Resilience? 2. Does Council have any additional clarification of the two priorities highlighted in tonight’s materials?  Strategies that create community jobs (Talent)  Small business plan (Support) 25 ATTACHMENT 9 3.9 Packet Pg. 237 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) Questions 26 Thank you! ATTACHMENT 9 3.9 Packet Pg. 238 Attachment: Powerpoint Presentation (8176 : Economic Health Strategy Update) ATTACHMENT 7 3.7 Packet Pg. 182 Attachment: Business Engagement Action Plan (8176 : Economic Health Strategy Update) total capital to date Leading Seed Investment Rounds Financial Technology Artificial Intelligence Cleantech, Energy & Advanced Materials Hardware & Enterprise Software Supporting Startup and Scaleup Companies in 2018: Innosphere client companies exited client companies went from pre-revenue to revenue companies in the Scaleup Program companies graduated 20 companies were in revenue and generated 24.6M This total is up $ 173% from the prior year $ 31.9M 3 6 10 12 ATTACHMENT 5 3.5 Packet Pg. 178 Attachment: Innosphere Economic Impact Infographic - 2018 (8176 : Economic Health Strategy Update) Packet Pg. 176 Attachment: Small Business Survery Summary Report (8176 : Economic Health Strategy Update) polices supporting innovation and entrepreneurship STRATEGY 1.3: Support collaboration between research institutions, industry, and government (Triple Helix) PROGRAMS Climate Economy Action Plan EPIC Program ClimateWise PROGRAMS City as a Platform Smart Cities Industry Clusters SBDC Innosphere PROGRAMS Networking Events Industry Cluster 3.0 Talent 2.0 PROGRAMS Directing capital investment and infrastructure improvements Manage Urban Renewal Authority Manage Metro District process PROGRAMS Directing capital investment and infrastructure improvements Development review Redevelopment analysis STRATEGY 2.1: Foster healthy engagement between the City and businesses STRATEGY 2.2: Improve regional collaboration and alignment STRATEGY 2.3: Increase access to business support tools PROGRAMS BEAP Surveys Business Listening Sessions Business Appreciation Breakfast PROGRAMS Regional Engagement and strategic partnerships Talent 2.0 Airport PROGRAMS Resource Referral Direct Business Support Revolving Loan Fund Business Projects & Compliance STRATEGY 3.3: Collaborate internally to support strategic land planning and infrastructure investment STRATEGY 3.1: Maximize utilization of targeted infill and redevelopment areas 3.2 Packet Pg. 101 Attachment: Economic Health Strategic Plan Overview Map (8176 : Economic Health Strategy Update) 3. Support local, unique, and creative businesses.  Support programs emphasizing local business  Define and support the Uniquely Fort Collins Cluster  Support local and creative entrepreneurship  Support the brewing industry 4. Encourage the redevelopment of strategic areas within the community.  Prioritize targeted redevelopment areas  Encourage infill development and redevelopment  Develop fee schedules for development and redevelopment 5. Participate in regional economic development efforts.  Support the Fort Collins/Loveland Airport  Prioritize regional infrastructure 2012 ECONOMIC HEALTH VISION Fort Collins: Crafting a dynamic culture of innovation and stewardship to cultivate quality of place and economic health. The vision should be the unifying theme across the principle projects, collaboration, research, and City policies geared toward promoting economic health in Fort Collins. GUIDING PRINCIPLES A Healthy, 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. GOALS 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 3.1 Packet Pg. 100 Attachment: Excerpt of 2012 Economic Health Strategic Plan - Evolution of Fort Collins Approach (8176 :