Strategic Economic Development Master Plan

Strategic Economic Development Master Plan City of Wichita Sedgwick County Wichita Area Chamber of Commerce June 24, 2002

Strategic Economic Development Master Plan City of Wichita Sedgwick County Wichita Area Chamber of Commerce 200+ invited, over 100 participated

2002 economic environment Normal year: Fewer than 200 major business expansions/relocations, More than 15,000 ED organizations competing Not a normal year!

10-year statistics Employment growth rate: Location Rank Dallas 1 Denver 2 Kansas City 3 Omaha 4 Tulsa 5 Oklahoma City 6 Kansas 7 Des Moines 8 United States 9 Wichita 10

10-year statistics Personal income growth: Location Rank Denver 1 Dallas 2 Omaha 3 Kansas City 4 Kansas 5 United States 6 Tulsa 7 Des Moines 8 Oklahoma City 9 Wichita 10

5 major themes Coordination of ED agencies Development of a world class workforce Increasing the R & D capacity Improvement of infrastructure Expanding the commercial/industrial base

Best practices Phoenix, AZ Hampton Roads, VA Kansas City, MO/KS Springfield, MO Lincoln, NE Olathe, KS Topeka, KS San Diego, CA Omaha, NE Oklahoma City, OK Little Rock, AR Tulsa, OK Research Triangle, NC Charlotte, NC

Common characteristics Regional focus Private sector driven (funded) Long-term commitment

Regional focus: KC vs. Wichita KCADC Market Area

Regional focus: KC vs. Wichita Target distribution center (Topeka) Serologicals Corporation (Lawrence)

Regional focus: KC vs. Wichita Topeka Lawrence KCADC Market Area

Site selection factors Availability of skilled labor (incl. R&D) Labor costs Tax exemptions State and local incentives Highway accessibility

Funding comparison - 2002 ED, Community Marketing and Workforce Development Wichita $850,000 Omaha $1,293,000 Tulsa $1,400,000 Des Moines $2,000,000 Topeka $2,000,000 Kansas City $2,900,000 Oklahoma City $3,500,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000

Proportional funding - 2002 ED, Community Marketing and Workforce Development Wichita $850,000 Wichita area funding if it were Tulsa $930,000 at the per capita level of ... Omaha $980,000 Oklahoma City $1,750,000 Kansas City $2,200,000 Des Moines $2,400,000 Topeka $6,400,000 $0 $2,000,000 $4,000,000 $6,000,000

Conclusions Increase funding to competitive level Long-term commitment (5 years) Don’t create a new bureaucracy!

Coordination of agencies

Interim steering council Paul Allen – Allen, Gibbs & Houlik Pat Ayars – Key Construction Derek Bridges – Delta Dental Troy Carlson – Right Management Consultants David Glassner – Cessna Finance Corp. Mike Grier – Eby Construction Steve Martens – The Martens Companies Tim Witsman – Wichita Area Chamber

Interim steering council Sheryl Wohlford – Automation Plus Bob Knight – City of Wichita Chris Cherches – City of Wichita Gary Hay – Private consultant Bill Buchanan – Sedgwick County Tim Norton – Sedgwick County Tom Winters – Sedgwick County Mike Ledy – City of Winfield Camille Kluge – Wichita Technical College

Agencies: Current structure

Agencies: New structure

Agencies: New structure

Expansion of commercial/industrial base Wealth creation Wealth importation/retention

Wealth creation Manufacturing Research and development

Wealth importation and retention Business services (call centers) Distribution centers Destination retail/entertainment Tourism Healthcare Education (post-secondary)

Targeted Clusters Select 3-4 Aviation _____________

Targeted Clusters Aviation 35,000 jobs $52,565 average wage Return on investment Aviation 35,000 jobs $52,565 average wage

Targeted Clusters Healthcare 20,000 jobs $40,000 average wage Return on investment Healthcare (hospitals & clinics) 20,000 jobs $40,000 average wage

Targeted Clusters Call center 3,500 jobs $22,000 average wage Return on investment Call center 3,500 jobs $22,000 average wage

Targeted Clusters Annual average wage – Wichita MSA $32,979

Targeted Clusters Greatest return on investment Select 3-4 Greatest return on investment Number of jobs / wages Capital investment Greatest probability of success

C & I base expansion Site selection factors – “deal killers” Availability of skilled labor (incl. R&D) Labor costs Tax exemptions State and local incentives Highway accessibility

C & I base expansion Site selection factors – “deal killers” Corporate tax rate Proximity to major markets Occupancy or construction costs Energy availability and costs Environmental regulations

Steve’s close Big finish goe$ here!