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HomeMy Public PortalAbout2014 - Chamber of Commerce Annual Report - Final 3-2-15your nosiness ; our f cos. r Jefferson Citg 2014 ANNUAL ECONOMIC DEVELOPMENT REPORT JEFFERSON CITY/COLE COUNTY JEFFERSON CITY AREA CHAMBER OF COMMERCE MARCH 2, 2015 Agenda ACTIVITIES REPORT •Resources •Business Attraction •Regional Economic Development •Workforce Development •Business Retention and Expansion •Small Business •Community Development •Transportation •Industrial Site Management RETURN ON INVESTMENT (ROI) UPDATE 2015 ED ACTIVITIES ECONOMIC POLICY AND PLANNING 2014 Resource Report $1,000,000 $500,000 RE 2014 - ACTUAL CHAMBER OPERATING EXPENSE BY CATEGORY $926,658 ,' $720,032 $422'147 $51,040 $136,432 $555,405 i 10, 10 $2,2.29 $6,651 $10,274 $51,040 $2,229 $79,989 $0 $297,885 9 $0 $56,443 $6,651 $10,274 de oq cr Q �� 0 04 '04 5 (10�` $0 $371,253 BUDGET TOTALS ED SPENDING CHAMBER SPENDING 2014 - ED - Chamber % of COST by EMPLOYEE 100% 210 13% 7% 11% a 90% 27 % 80% 70% 72% � 6©./ 5i`� 8$I 50% 87% 93% 89l 0a o a 40% 73% 73rb 79/0 77/0 30% 20% z8% 4 10/ GYo 12/0 0% x- * e ��* ze 16z, 0<11 59% 41% ED - CHAMBER $1,000,000 $900,000 Chamber Events and Miscellaneous Income $800,000 $168,299 $700,000 Chamber Membership Investment Income (Dues) $600,000 $363,359 $500,000 $400,000 $300,000 21st Century ED Support $60,000 Cole County ED Contract $150,000 $200,000 City of Jefferson ED $100,000 Contract $185,000 $0 INCOME SPENDING 2014 Summary JC Area Chamber Operations Budget TOTAL ECONOMIC DEVELOPMENT SPENDING $555,405 CHAMBER $ SPENT IN ADDITION TO BASE LEVEL $160,405 Spending on Chamber Activities Actual Additional Spending on ED from Chamber Income Base Level ED Spending Chamber Events and Miscellaneous Income Chamber Membership Investment Income (Dues) 21st Century ED Support a Cole County ED Contract City of Jefferson ED Contract BUSINESS ATTRACTION 2007 - 2014 BUSINESS ATTRACTION PROJECTS F, 160 F8-91 140 120 3G 24 28 100 1❑ 1❑ �� 1Z 13 $0j 7 7F71 F71 22 14 11 PROJECTS ❑ ❑ F,-4] 60 3 1 2 [01 [21 [11 3 13 RFP 40 SITE VISIT 20 ,' ❑° 0 ❑❑ 0 0 0❑ 1 0 2 9 SITE VISIT 3 1 2 1 0 2 1 2007 1 2008 1 2009 1 2010 1 2011 1 2012 1 2013 1 2014 I I TOTAL ANNOUNCED 0 0 0 0 0 0 1 1 2 9 SITE VISIT 3 1 2 1 0 2 1 3 13 *� RFP 7 7 14 7 7 22 14 11 89 PROJECTS 10 10 17 12 13 36 24 28 150 ANNOUNCED Business Attraction Received project on July 7th, 2014 Japanese owned manufacturer 200 employees at start-up, and up to 1,200 at full build-out in 2020 10 to 15 Japanese management, rotating in and out on a regular basis (this number might be larger during the ramp-up phase) $14 to $15 for manufacturing labor, with a $24 to $25 weighted average for all employees 1 million SF manufacturing building initially; 500K SF warehouse building to follow; and a separate 500K SF manufacturing building for separate functions/products; 30’ maximum building heights Project Osaka – Site Visit Business Attraction Project Osaka (con’t) $70 to $100 million in capital investment initially 200 acres -Proposed site – Partnership Business Park Lot 2 Site visit – July 21st, 2014 Competition – IN, IL, KS & MO •11 communities in Missouri Jefferson City was eliminated due to : •Cost of improvements to site •Site was isolated-wanted more visibility •Kansas City area is still being considered (Lee’s Summit) Business Attraction Business Attraction Received project on April 22nd, 2014 Unique in they disclosed the name of the company upfront Yechiu Group (pronounced E-Cho)-headquartered in China Heavy media separation plant, a center to collect aluminum scrap and aluminum recycling 233 jobs initially - started out as 70 jobs $51.1 million investment initially – started at $5 million investment 75,600 SF existing building, 30 additional acres for smelting plant within 5 years Project Aluminum – Site Visit Business Attraction Project Aluminum (con’t) Submitted the Chamber spec building with land options •Option A is a 73 acre site that is owned by a private owner and is located directly across from the Chamber owned Spec Building •Option B is an 80 acre certified site owned by the Jefferson City Area Chamber of Commerce Site visit – July 30th, 2014 - Competition – AL, TN, KY & MO •7 communities in Missouri •Jefferson City was eliminated due to cost to finish out building and lack of land - Down to KY, MO, TN or AL •KY #1 Fulton #2 - Fulton was eliminated as of February 1, 2015 Business Attraction Business Attraction Missouri Partnership 2014 Project Wins 16 - Metro 5 - Outstate COMMERCIAL - INDUSTRIAL SITE PROJECTS 2007 - 2014 SPECULATIVE BUILDING PROJECTS 35 30 25 20 15 1 df 10❑ ❑ 101 5V/;—it 52] Fil 0 [31 0 It 0 2007 2008 2009 2010 1 2011. 2012 2013 2014 EXPANSION 0 1 1 1 2 3 1 1 ATTRACTION 2 1 2 4 3 12 6 4 0 -0 01 ATTRACTION EXPANSION TOTAL 10 34 Special Olympics Missouri Announcement Announced January 20th Training for Life Campus Home base for 16,500+ athletes & 1,142 coaches The Healthy Athletes Program: Centralized health screenings for athletes-Healthy Athlete Task Force Civic Progress Subcommittee Donation of 15.5 acres by Farmer Holding Company and Twehous Excavating City Council unanimously supported $300,000 in infrastructure Special Olympics Missouri SOMO SOMO First of its kind campus Largest U.S. training campus for individuals with intellectual disabilities Designed for children and adults, ages 3+ Multi-sport, multi-facility training complex 44,000 sq. ft. of training facility Modeled after U.S. Olympic Training Center in Colorado Springs, CO Special Olympics Missouri REGIONAL ECONOMIC DEVELOPMENT PARTNERSHIP Regional ED Partnership Attraction Events Attended as CORE 15 Attraction Projects Opened 60 Site Visits 35 New Investment (5 projects) $68.5 million Number of New Jobs (over 5 years) 156 Attraction and Marketing Metrics Regional ED Partnership Attraction Project Announcements Avacta Animal Health-Columbia Energy Americas LLC-Columbia Enginuity-Mexico Northwest Medical Isotopes-Columbia Special Olympics-Jefferson City Regional ED Partnership Expansion & Retention Metrics Projects Identified - 30 Expansion Projects Announced - 12 New Investment - $108,350,000 Number of New Jobs - 520 WORKFORCE DEVELOPMENT Workforce Development Certified Work Ready Communities Missouri is one of 7 leading states 8 counties certified – 44 counties “in progress” Cole County “in progress” 49% of goal met 94/117 businesses and 345/613 NCRC’s Testing at JCPS and DOC Workforce Development Information Technology Roundtable 22 businesses/education entities participating Held 3 meetings in 2014 Issues addressed •Support of the CPoD Program (Computer Professionals on Demand) •Market available IT internship positions to area students • Identify the employment needs of local IT companies BUSINESS RETENTION & EXPANSION PROJECTS 2007 - 2014 IDENTIFIED EXPANSION PROJECTS 0 o° ©°o r� r 228 201 127 15 429 160 51 �I 8❑ 6❑ ❑5 �1 12 � ❑5 INVESTMENT 1509 JOBS 54 EXPANSION PROJECTS 2007 2008 2009 2010 2011 2012 2013 2014 TOTALS -EXPANSION PROJECTS 8 6 5 1 12 6 5 11 54 JOBS 228 201 127 15 429 160 51 298 1509 INVESTMENT 1 $99,300,01 $54,100,0 1 $48,300,0 1 $2,000,00 1 $100,550, 1 $25,495,0 1 $61,193,0 1 $24,900,01 1$415,838, 2007 - 2014 ANNOUNCED EXPANSION PROJECTS INS 156 143 64 200 86 30 wo E 2 2 0 841 JOBS INVESTMENT ROLL 29 ANNOUNCED PROJECTS 2407 2008 2409 2410 2011 2012 2013 2014 TOTALS ANNOUNCED PROJECTS 6 4 2 0 5 3 3 6 29 ,JOBS 156 143 64 0 200 86 30 162 841 PAYROLL $4,845,386 $6,508,960 $2,551,314 $0 $5,094,600 $3,139,968 $1,024,080 $6,309,172 $29,473,48 INVESTMENT 1$52,300,001$29,300,001$31,500,001 $0 1$6,000,0001$26,280,001$8,193,0001$77,600,001 $231,173,0 Business Retention & Expansion Projects Announced Expansion Projects Investment $77,600,000 Jobs 162 Payroll $6,309,720 BUSINESS RETENTION & EXPANSION Business Retention & Expansion Company Site Visits Scheduled and Completed Company Site Visits – 125 Business Sectors •Manufacturing/Distribution – 27 •Financial Services – 9 •Information Technology – 13 •Health Care – 3 •Service/Retail/Other – 73 Business Retention & Expansion Enhanced Enterprise Zone Alpla •Alpla was approved for $124,711 in Enhanced Enterprise Zone Credits in 2012 Based on Alpla’s capital investments in 2014, the company will receive an estimated state tax credit benefit of $10,000 Missouri Works Program Huber & Associates •Huber & Associates was approved for a withholding reimbursement based on the wages of new hires Total withholding reimbursement is estimated to be $61,600 $20,000 $15,000 $10,000 $5,000 $0 F -i 1 0 ooa A66, Inc. 2014 - JC - CUSTOMIZEDTRAINING AWARDS $8,5aa 1 Alpla, Inc of Jefferson City $15,aaa VAIMMm Mm - Manufacturing ! $za,aaa Unilever ng Awards 2014 - JC - CUSTOMIZEDTRAINING AWARDS $318,22.1. $350,000 $300,000 $254,115 $223,000 $215,625 $237,000 $206,000 $250,000 -r - -M $200,000 f / M ----= $150,000 $100,000 $50,000 �/TrainingAwa rds ar $0 2008 2009 2010 2011 2012 2013 2014 Training Awards $318,221 $223,000 $254,115 $215,525 1 $206,000 $237,000 $61,500 Business Retention & Expansion DST Closure Effective as of December 31, 2014 Total Loss of Jobs – 70 Organized a job fair at Capitol Plaza Hotel DST employees Directly solicited all Chamber members to participate in the DST job fair Based on feedback from local company representatives, the vast majority of former DST employees have identified employment in the Central Mo area TAOS ST. MARTINS RUSSELLVILLE Rural Community Outreach ST. THOMAS CENTERTOWN WARDSVILLE LOHMAN Rural Community Outreach Lohman •Kim’s Mane St. Salon •Farmer’s Bank of Lohman •Higgin’s Lawn Service St. Thomas •B&K Quick Shop •Groner’s Service Station •Luebbering Custom Cabinets St. Martins •Bob’s Guns •Knapheide •Archery Shack Outreach to Rural Businesses Wardsville •Perfect Image •Schulte’s Lawn Care •Country Side Treasures Russellville •Russellville Locker & Feed •Pro Powder Coating •Community Point Bank Taos •Legends Bank •Break Time Store Centertown •Longfellow’s Garden Center •Tammy’s Restaurant •Fluegel’s Equipment, LLC SMALL BUSINESS PROGRAMS Small Business Programs Small Business Academy 2014 Graduates Rebecca Oesterly, Raditure Jeanne Burgess, Papa Murphy’s Pizza Monica Hoy, The Tan Club Christina Scrivner, Concrete Pumping, LLC Adam Veile, Communique Small Business Programs Tuesday Topic Sessions Happy Employees, Happy Workplace - 17 Affordable Health Care Act - 37 Social Media 101 - 19 New Approach to Strategic Planning - 17 Preventing IT Disaster in 2015 - 13 Building a Communications Plan – 18 Small Business Programs StartUp Jefferson City Encouraging Entrepreneurship (April – 26 attendees) Practice Pitch Event (August – 6 participants) Pitch It & Win It (October – 11 pitch contestants) •Secured $6,000 in prize money from Rural MO Inc. •Winners –One for All (Adult Day Care) - $2,000 –Drivers BBQ (Sauce distribution) - $2,000 –Kid Edison (Entrepreneur teaching aid) - $2,000 COMMUNITY DEVELOPMENT PROJECTS Conference Center RFP Assistance BAFO Assistance ROI Estimates Community Development Projects Community Development Projects St. Mary’s Reuse Project Successfully organized local TF TF convinced the legislature to include $6M for the project in capital budget Funds were vetoed by the Governor COMMUNITY DEVELOPMENT SUPPORT ASSOCIATION RELATIONS –Downtown Jefferson City –East Side Business Association –Old Munichburg Association –Southside Business Association –Westside Business Association –CVB Liaison Collaboration Council – New in 2014 Community Development Support Photo by Sasha Vasko moved to Ipernity - Creative Commons Attribution-NonCommercial License https://www.flickr.com/photos/42441750@N03 Created with Haiku Deck Downtown Revitalization Old Town HIDDEN SPACES-SECRET PLACES TRANSPORTATION INITIATIVES LAFAYETTE STREET INTERCHANGE Jefferson City, Missouri Transportation Enhancement Plan May 16, 2014 Transportation Enhancements: Jackson Street Bridge View of Jackson Street from west bound lanes of Highway 50 - Chestnut Street Bridge Elevation: view to the east - Retaining wall at Jackson Street Bridge Elevation: view to the south - Lafayette Street Bridge Elevation: view to the north - Jackson Street Bridge Elevation: view to the east - Jackson Street Bridge Proposed Enhancements - Pylons - Pylon Lights - Railings * - Railing Lights - Identity Signage - Retaining walls at rock cut* * assumes MoDOT cost share - Chestnut Street Bridge Proposed Enhancements - Pylons - Pylon Lights - Railings * - Railing Lights *assumes MoDOT cost share - Lafayette Street Bridge Proposed Enhancements - Railings Transportation Enhancements Base Bid (Approximate Cost: $1,332,834) COMMERCIAL - INDUSTRIAL SITE MANAGEMENT 2006 - 2014 21st CENTURY LAND IMPROVEMENTS - CASH INVESTMENTS 4 227 1 ac $4,500,000 $4,000,000 $3,500,000 1 / 1$2,297,6 $3,000,000 $2,500,000 $2,000,000 1$705,045] $672,140 $1,500,000 IS330,190 J$250,449 $81,731 $1,000,000 TOTAL $500,000 INVESTMENT M Speculative Partnership Partnership Partnership Partnership Other E❑ 2006-2014 Building Business Park Business Park Business Park Business Park Projects Total 21st Development Purchase Infrastructure Planning On -Going Century Cash Project Costs Expenditures Commercial – Industrial Site Management Total Construction Cost $1,243,700 Other project costs $20,000 Total Project Costs $1,263,700 Interest on Loan $415,800 Spec Building Maintenance and Utilities $25,545 Payments on Loan Principal $0 Balance on Loan ($1,000,000) $705,045 Vanderfeltz Land Purchase $2,100,000 Other acquisition Expenses Paid $15,000 Total Paid on 100 Acres to acquire $2,115,000 Interest on Loan to Date $182,644 Balance on Loan $0 $2,297,644 Lehman Project Costs $1,021,000 Verslues Project Costs $102,000 Engineering $91,000 Other Costs (utilities etc )$19,000 Total Project Costs $1,233,000 City and County Participation ($560,860) $672,140 Partnership Business Park Infrastructure Project Summary of 21st Century Expenditures on Economic Development Projects 2006-2014 Speculative Building Development TOTAL Partnership Business Park Purchase TOTAL TOTAL Summary of 21st Century Expenditures on Economic Development Projects 2006-2014 Planning $125,633 Corps of Engineers Permit $84,000 Gas Extension Expense $69,130 Certified Sites Project $51,428 $330,190 Property Taxes $196,222 Insurance $34,588 Maintenance Costs $19,639 $250,449 Land Options $21,731 179 Intersection - St Marys Grant Preparation $40,000 Union Pacific RR Spur Design Work $20,000 $81,731 $4,337,199 TOTAL 2006-2014 Total 21st Century Cash Expenditures Partnership Business Park Planning TOTAL Partnership Business Park On-Going Costs TOTAL Other ED Projects Commercial – Industrial Site Management RETURN ON INVESTMENT (ROI) ECONOMIC DEVELOPMENT PROGRAM $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2007-2016 - JC/CC - ANTICIPATED ECONOMIC RETURN EXISTING BUSINESS PROGRAM, COMMAND WEB AND MORRIS CONVERTING Ac of ')n7 A Q� ti10 X99 �y1 $314,35$399,671 llio TOTAL AER FOR JC/CC $252,830 $76.042 EB Expansions - JC/CC TOTAL $� $� $37,470 $37,470 $37,470 $37,470 $37,470 $58,603 $54,965 ' CW - JC/CC TOTALS $37 620 $40,870 $0 $0 $0 $0 $0 $0 $0 MORRIS - JC/CC TOTAL ti°may $Y� ROI YEAR 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 MORRIS - JC/CC TOTAL $0 $0 $0 $0 $0 $0 $0 $0 $37,620 $40,870 EB Expansions - JC/CC TOTAL $76,042 $252,830 $314,357 $314,357 $399,671 $475,491 $495,492 $603,887 $603,887 $603,887 CW - JC/CC TOTALS $0 $0 $0 $37,470 $37,470 $37,470 $37,470 $37,470 $58,603 $54,965 TOTAL AER FOR JC/CC $76,042 $252,830 $314,357 $351,827 $437,141 $512,961 $532,963 $641,357 $700,110 $699,721 CHAMBER CONTRACT ($250,000)($300,000)($300,000)($300,000)($300,000)($350,000)($335,000)($335,000)($335,000)($335,000) NET CHAMBER ROI - City and County ($173,958)($47,170)$14,357 $51,827 $137,141 $162,961 $197,963 $306,357 $365,110 $364,721 2007-2016 Net New Economic Return - JC/CC as of 2014 ANTICIPATED ECONOMIC RETURN FOR JC and CC $550,000 $450,000 $350,000 $250,000 $150,000 $50,000 ($50,000-1 {$150,000} S ($250,00u, , ($350,000) -- 2007-2015 - JC/CC - ANTICIPATED ECONOMIC RETURN (NET ROI) EXISTING BUSINESS PROGRAM, COMMAND WEB AND MORRIS CONVERTING As of 2014 TOTAL AE R FOR JC/CC NET CHAMBER ROI -JC & CC CHAMBER CONTRACT 2007-2016 - COUNTY SCHOOLS - ANTICIPATED ECONOMIC RETURN EXISTING BUSINESS PROGRAM, COMMAND WEB AND MORRIS CONVERTING As of 2014 $636,551 $636,551 $636,551 u $800,000 $522,294 $501,M $700,000 ��4*yc�� $331,361 $421,289 $331,361 $600,000 $266,506 TOTAL AER FOR SCHOOLS $500,000 $80,155 $400,000 EB Expansions -SCHOOLS TOTAL $.300,000 $0 $0 9 $0 $0 $57,827 $43,366 $43,616 $43,868 $44,123 CW - SCHOOLS TOTALS $200,000 $50,264 $52,009 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 MORRIS - SCHOOLS TOTAL $0 2015 ED Activities Surveyed Chamber Board at Retreat on February 24 60 Economic Development Activities were discussed. March/April - Meet with ED Partners (City, County and Chamber) to determine 2015 ED Priority Activities. 2015 ED Activities 2015 ED Activities 2015 ED Activities