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Housing Summit Mike Kazmierski, President and CEO July 8, 2015
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“Primary” or “Base” Jobs!
EDAWN’s Mission “Primary” or “Base” Jobs! The Attraction, Retention / Expansion or Start-Up Creation of New Primary Jobs Majority Of Customers Outside The Region External Customers Add Wealth To Region Tax Dollars & Wages Of Employees Investments Of Building / Equipment Generates Additional Jobs + Multiplier Effect Quality Jobs ($20.00 Per Hr + Benefits) 90% + Of Jobs Filled By Existing Residents -When I say, Quality Jobs I really mean, "Primary" Jobs. -With the limited resources we have, EDAWN Focuses on Primary jobs as they really do fuel our economy. -A primary employer is one where the majority of their customers live outside the region. This inflow of wealth generates economic activity for the entire community. -Primary jobs also add additional secondary jobs like retail and suppliers. - It's important to note that we do not generally bring people into the community but rather quality jobs and that 93% of the jobs announced are filled by people already in the community. 2
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Three Legs Of Economic Development
Retention / Expansion Attraction The three legs of economic development Entrepreneurial / Startup Growth 3
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Prospect Visits Per Month
2011 Ave 4.2
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Jobs Announced – Ahead Of Goal
FY 2015 Goal-2,400 FY 2015 Goal
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2014 Assisted Projects Industry Company Jobs From HQ Manufacturing
Advanced Refining 12 NV Distribution Anixter 8 Ashima Devices 100 CA Yes Beaverfit USA 25 UK Cenntro Automotive 300 NJ Service Clear Capital 400 Cuco, LLC 15 CustomInk 261 Eaton's B-Line Business 49 Flirtey 4 AUS Fulcrum Sierra Biofuels 30 Gensano 2 These next three slides detail the companies we worked with in 2014. I have included them because we are often asked to show how we get to our final number.
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2014 Assisted Projects Industry Company Jobs From HQ Service
Ghost Systems 150 NV Yes Manufacturing Harris Welding Supply 50 CA Distribution Independent Salon Services 10 James Hardie Building Products 9 Orest Express 30 IL Petco Real Spirit Rubber Enterprises 21 Stitch N Print 40 GA Tecno Displays Tesla (Year One) 700
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2014 Assisted Projects Industry Company Jobs From HQ Totals = 34
Service Whisper Jet 18 CA Distribution Chewy 120 FL White Rabbit 25 Yes zulily 1,000 NV Manufacturing Clean Tech 30 Manufacturer Hose Master OH Hubert Mechman Alternators 15 TN Nutrient Foods 300 NJ Turn 14 20 PA Weaver Popcorn 60 IN Totals = 34 27 New / 7 Expansions 4,119 13 4,179 is an unbelievable number for a community of our size. Even without the first year number of 700 for Tesla we are still close to 3,500 new primary jobs a new record
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The Largest Deal In The U.S. In 2014 - Changes Our Brand Overnight!
Tesla: Wow! The Largest Deal In The U.S. In Changes Our Brand Overnight! More Than Jobs: Puts Us on The Radar For: Manufacturing, Business, Entrepreneurs, Creative Class, Research & Development, Investors . .
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Pending Announcements
Industry Job Count HQ Confidence Relocation State Manufacturing 100 Very Likely TAIWAN Distribution 80 FL CA 50 UT OH Service X NV Very likely MN 300 NY Data Center TX Total 1,060 1 Very Likely Means They Have Indicated They Have Selected Us Or Are In The Process Of Acquiring Real Estate
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Hot Prospects! Total 6,090 Industry Job Count HQ Confidence
Relocation State Manufacturing 1,000 Top Two IL 2,800 Finalist PA / VA Data Center 80 TX 500 NJ 700 SC 100 New CA 150 Service 200 IN 40 WI Distribution 20 GA Total 6,090
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Types Of Companies Relocated FY2014
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Corporate Headquarters!
Jobs Are Quality Jobs: Higher Average Wage Help To Positively Brand Our Region: Meetings, Clients, & Identify Reno- Sparks As Their Home HQs Bring Corporate Philanthropy And Engagement: They Get Involved To Make Community Even Better HQs Bring More Economic Impact Growth Likely To Occur Here & May Encourage Others Like Their Suppliers To Operate Or Relocate Here You may also have noticed on the past few slides - many companies are bringing their corporate headquarters to the region. 13 in 2014! More than double our record from last year and an indicator that our brand as a business community is changing. This is especially exciting for all of these reasons…….
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Retention Results / Initiatives
Company Visits – 184 Growing 84 Future Growth 68 Flat 29 Declining 3 Seven Assisted Expansions = 1,340 New Jobs Business To Business Connections Made = 36 Two Industry Sector Councils 53 Companies In Existing Industry Awards Issues Addressed = 25 83% Growing Some metrics from this past year show that Nancy 911, and her team Cynthia and Valerie visited with nearly 200 primary companies. Of those they visited, most are growing Additionally, helping these companies with issues they have or business to business connections is an important part of the program. 14
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Entrepreneurial Development Success!
3 Alternative Tech Startup Cities Three Western locales previously considered vacation destinations are now alternatives to Silicon Valley…..…. Startup Cities in America # 8 Of The 14 Best …the next wave of cities building an ecosystem to turn innovators into entrepreneurs Popular Mechanics. We have has incredible success in the past few years and we are starting to get national recognition for that progress. Entreprener.com Tech Startup Cities Google – E-City Popular Mechanics - #* Startup Cities in America Next City Vanguard An International Economic Developers Council award to name just a few! Next City Vanguard Conference – Can you imagine getting national recognition as a “next city” just a few years ago? In Fact, I was told that a member of the media was recently at a conference and more than one person told them that they heard Reno was the next Austin! 15
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Explosive Growth Is Coming!
Rapid Growth 2.2% Compare the projected growth over the next five years to our “rapid growth” in the 90’s and early 2000’s. We have never experienced this magnitude of growth in our history. In fact only once have we exceed 5% in a year and we are now looking at 5 years or more of this growth And Tesla is only a 1/3 of it! Historic Growth 1.2% / Year 16
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The EPIC Report (Economic Planning Indicators Committee)
Unprecedented Growth Is Projected For The Region: Tesla/Switch & Nearly 100 Other Announcements What Are The Impacts Of This Growth On: Housing, Transportation, Workforce, Public Service Etc.? Multiple Planning Organizations Were Providing Varying Projections On Job & Population Growth Oct ‘14 EPIC Formed To Initiate The Coordination Of (Public / Non-profit / Private) Agencies To Develop A Single Consensus Report EPIC Technical Committee Met Weekly With RCG Economics To Gather Data & Provide Feedback
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EPIC Members Organizations Organizations City of Reno City of Sparks
City of Fernley Washoe County Storey County University of Nevada, Reno Truckee Meadows Community College Washoe County School District Reno Tahoe Airport Authority NV Energy Truckee Meadows Water Authority Organizations Truckee Meadows Regional Planning Agency Center of Regional Studies, UNR Regional Transportation Commission of Washoe County NV Department of Employment, Training & Rehabilitation State Demographer Governor’s Office of Economic Development Economic Development Authority of Western Nevada Northern Nevada Development Authority Western Nevada Development District
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Assumptions Detailed Assumptions Provided In The Report
In Developing The Ranges For Job Growth Conservative Numbers Were Used Job Growth, In Addition To Tesla, Was Included Based On EDAWN’s Estimates Transportation Projects Projected To Be Completed In The Next 5 Years Were Considered Study Area Based On 5 County Area Around Tahoe Reno Industrial Center
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Scope of Work Address The Community Growth Impacts On:
Fiscal (Public Revenues) Socio-Economic / Housing / Schools / Traffic Address 3 Scenarios High – Med - Low Address A 5-Year Period Provide Data On 5 Counties & 18 EPIC Zones Collate Data From State & Local Agencies Addressing Planning & Projections An Updated Report Is Projected in Months
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Study Area Consists Of 5 Counties
Study Area Map – Study Period: Source: Nevada Economic Planning Indicator Committee (EPIC).
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Study Area also divided into 18 “EPIC Zones”
Study Area Zone Index Map: 2015 Source: Nevada Economic Planning Indicator Committee (EPIC).
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18 EPIC Zones Study Area Zone Index IDs (Based on Census Tract Boundaries) ID EPIC Zone Washoe County 1 Sparks 2 Sparks Industrial 3 Sparks Suburban 4 Downtown Reno 5 North Reno 6 West Reno 7 Southwest Reno 8 Southeast Reno 9 North Washoe 10 South Washoe Storey County 11 Storey Carson City County 12 Carson City 13 Carson City - Rural Douglas County 14 Douglas 15 Douglas – Rural Lyon County 16 Fernley Area 17 Central Lyon 18 South Lyon Source: Nevada Economic Planning Indicator Committee (EPIC).
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EPIC Job Forecast Scenarios (Five Years: 2015-2019) Rounded
Scenario Job Growth Population A 56,600 46,200 B1 52,400 42,400 B2 52,400 64,700 C 47,400 37,800 EDAWN Projected Most Likely Scenario
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Scenario B2 5-Yr growth: 52K jobs, 64K persons & over 25K households
Change for B1 slide: Jobs change should be 15.0% Pop/HH for B1 should be 7.1% Source: Nevada Economic Planning Indicator Committee (EPIC).
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Scenario B job growth concentrated in 5 Zones
Total Projected Employment Growth Map-Scenario B, by EPIC Zone: Source: Nevada Economic Planning Indicator Committee (EPIC).
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Scenario B1/B2 employment growth concentrated in 5 Zones
Projected Employment Growth Conclusions: 5 zones contain two-thirds of the growth Zone 2: Sparks Industrial – 4,428 jobs Zone 4: Downtown Reno – 5,313 jobs Zone 5: North Reno – 4,932 jobs Zone 8: Southeast Reno – 10,318 jobs Zone 11: Storey County – 10,502 jobs Other notable gains Zone 7: Southwest Reno – 2,873 jobs Zone 10: South Washoe – 2,444 jobs Zone 12: Carson City – 2,723 jobs Zone 15: Douglas-Rural – 2,052 jobs All zones gain jobs over study period Source: Nevada Economic Planning Indicator Committee (EPIC).
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Scenario B2 population growth centered around Reno-Sparks MSA
Total Projected Population Growth Map-Scenario B2, by EPIC Zone: Source: Nevada Economic Planning Indicator Committee (EPIC).
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Scenario B2 population growth concentrated in 5 Zones
Projected Population Growth Conclusions: 5 zones encompass over half of the population growth Zone 3: Sparks Suburban – 5,824 persons Zone 5: North Reno – 8,837 persons Zone 8: Southeast Reno – 6,281 persons Zone 9: North Washoe – 11,498 persons Zone 10: South Washoe – 7,126 persons Rest of population growth spread out Zone 1: Sparks – 3,648 persons Zone 6: West Reno – 3,443 persons Zone 7: Southwest Reno – 4,863 persons Zone 12: Carson City – 3,607 persons No zones to lose population under Scenario B2 Source: Nevada Economic Planning Indicator Committee (EPIC).
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10% Growth Average per year
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10% growth in 2014
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Washoe County Residential Potential Map 2015
11,000 Lots Ready NOW! 50,000 Available Soon Washoe County Residential Potential Map 2015 Major Roads EPIC Zones Active Tentative Map (TM) Boundaries Planned Unit Development (PUD) Vacant – Residential Potential Incorporated Areas
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Questions?
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