1. Strategic Economic Development Master Plan

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

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

4. 2002 economic environment
Normal year: Fewer than 200 major business expansions/relocations,
More than 15,000 ED organizations competing
Not a normal year!

5. 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

6. 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

7. 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

8. 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

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

10. Regional focus: KC vs. Wichita
KCADC Market Area

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

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

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

14. Funding comparison
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

15. 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

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

17. Coordination of agencies

18. 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

19. 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

20. Agencies: Current structure

21. Agencies: New structure

22. Agencies: New structure

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

24. Wealth creation
Manufacturing
Research and development

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

26. Targeted Clusters
Select 3-4
Aviation
_____________

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

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

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

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

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

32. 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

33. 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

34. Steve’s close
Big finish goe$ here!