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ith the Site Selection Competitiveness Awards having been created to honor state economic development teams, our Top Groups designation has been reserved for those metro, town and county teams that are so often at the nexus of any deal. Why? Because they literally know the lay of the land better than anybody else.
Below, in alphabetical order, are the Top 10 Groups for 2002 and the 10 Honorable Mentions. Their home states correspond closely to our Governor’s Cup rankings (see our March 2003 issue), with 12 of the 20 groups hailing from that competition’s Top 10 states.
This group includes three agencies from Virginia, and two each from Illinois, Texas and California. The group was chosen based on four objective categories: new jobs, new jobs per 10,000 residents, new investment amount and new investment amount per 10,000 residents. The top groups were ranked according to their scoring in those categories, then evaluated according to more subjective criteria, including innovative programs, leadership and customer service. Only those agencies that submitted a nomination form were considered for this award.
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Cream of the
Cumulative Crop
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While some of these top agencies were able to ride one big deal to the top of the mountain, they know that to appear on this list again takes a special kind of consistently excellent performance. Broomfield, Colo., makes its fifth straight appearance in the Top 10. Other repeating top groups over the past several years include the Pittsburgh Regional Alliance, the Corpus Christi Economic Development Group and the Prince William County Dept. of Economic Development.
One emerging characteristic of the honorees is their willingness to recognize the power of regionalism. Another characteristic is trust.
Site Selection editorial advisory board member Roger Beck, retired manager of real estate and facility management for Dow Corning and a board member of the Industrial Asset Management Council (IAMC), has worked with economic developers all over the world.
I think confidentiality and expediency are the two major things,
he says of CRE expectations of local ED folks,
and economic development people are more attuned to that than they were five years ago or 10 years ago.
Beck has seen first-hand results of how a regional approach lifts all boats. His base of operations was in Midland, Mich., the
high-tech
part of the tri-city area that includes Bay City and the historically blue-collar community of Saginaw, home to a General Motors plant.
The three economic development organizations were a bit non-cooperative with one another,
he says.
I was on the board of all three of them at one time or another. What I tried to get them to realize is that a regional approach is better. Now they work as a region, and still represent their cities. You get a higher critical mass. Parochialism won’t get it anymore.
Jack Brophy, former director of corporate real estate for USG Corp. and IAMC chairman, says coordination between local and state is key, to keep a prospect from becoming bogged down in turf wars.
When I used to put up a lot of units, what I found was it was easier from the corporate side to have a strong state level that brought the local people in,
he says.
Sometimes you need legislation at the state level. It seems to work better.
The other reason for the top-down approach, says Brophy, is to save the corporate side from having to procure and then sort among different standards and quality of information from town to town.
Beck says the local and state ED agencies really need each other. He’s found that candor can be attractive in its own right too, allowing a prospect to cut to the chase in determining the actual business conditions and amicability present in a community.
Working with people who are creative and congenial, you can overcome nearly anything,
says Beck.
It’s true on our side of the coin too, as site selection people. We have to realize these people are helping us. Sometimes we get this snobbish attitude … but you don’t beat people at their own game. You’re going to get what you deserve.
What distinguishes the Top Groups is a relative absence of difficulty and a bounty of good will, flexibility and trust throughout the agency’s ranks. They do what they love, and the projects follow.
Top 10 Groups
Development Corp.
When you’re the corporate campus capital of the state, economic growth happens. Here’s what has transpired during the five years Broomfield has made the Top Groups list: more than $2 billion invested, with average monthly growth of 202,860 sq. ft. (18,846 sq. m.) and 259 jobs.
In 2002, the investments in this town of only 48,000 residents came from companies as diverse as Redlands, Calif.-based GIS firm ESRI ($10.5 million, 48 jobs) and Ball Corp. corporate headquarters ($4.8 million expansion, 40 jobs).
The community’s biggest project of the year came from an existing corporate resident, McData, which is gradually migrating to new digs in the Great Western Park business park. The first phase of the projected $60-million investment, a 168,000-sq.-ft. (15,607-sq.-m.) engineering division headquarters, was completed in July 2002.
Broomfield EDC President and CEO Donald Dunshee says the region’s quality of life is only getting better, with all homes and businesses being wired for high-speed Internet capability, affordable housing construction under way and a soon-to-be-completed toll parkway that will enable 20-minute commutes to the Denver International Airport.
While these don’t translate into investments,
says Dunshee,
they certainly indicate that Broomfield is looking beyond the jobs, taxes and investment barometers to look ahead to future growth.
Economic Development Corp.
Aviation has Corpus Christi flying high. Because of the growing prominence of the city’s U.S. Army Depot as the nation’s leading helicopter repair facility, new corporate locations came from Boeing Corp., Sikorsky (a division of United Technologies) and GE Engines.
Because of the growth of this sector, we are developing a new business park adjacent to Naval Station Corpus Christi focused on aviation companies,
reports Ron Kitchens, president and CEO of the Corpus Christi Regional Economic Development Corp.
In the November 2002 elections, voters approved a 1/8-cent sales tax for economic development incentives that is projected to provide more than $50 million over the next 15 years. A new $70-million convention center and minor league baseball stadium are also generating their own economic heat.
Just as impressive are the area’s investments in human capital. Because of the area’s tremendous job growth, a new human relocation program is marketing the area to people living elsewhere as well as to military and trailing spouses.
For the City of Magnolias, 2002 smelled more like a rose, as this town of only 35,000 residents in the southeast quadrant of the state attracted the two biggest corporate investments in its history: the $100-million Cardinal Float Glass plant and the $65-million Big Lots distribution center. Trailing just behind those projects was the $35-million plant from Custom Molded Plastics.
We have created, in the last two years, over $300 million in new investment,
says Tommy Kramer, economic development director for the City of Durant. But there’s no time for resting on laurels.
We have three certified industrial parks, with in excess of 600 acres [243 hectares] available, and rail availability in two of the three,
he says. Then there are the $25 million worth of infrastructure improvements like a major highway expansion and new water and wastewater facilities, all in preparation for the second wave of expansion.
Chamber of Commerce
It sounds like just one project, but the $700-million General Motors expansion, like any automotive assembly project, brings an awful lot of further investment in its wake.
The Shreveport Chamber has proven its mettle at handling that second wave of suppliers and service providers, as 17 of them move into the area. David C. Berzina, the Chamber’s senior vice president for economic development, singles out two in particular, which the city successfully kept out of East Texas.
Under direct and heavy competition from an incentive standpoint, Shreveport and the state of Louisiana captured the 460 jobs, 350,000 sq. ft. [32,515 sq. m.] and $23-million investment associated with the two projects,
he says.
The same competitive zeal convinced Toledo, Ohio-based Libbey Glass to not only maintain its 800,000-sq.-ft. (74,320-sq.-m.), 1,000-job facility in Shreveport, but locate a $15-million, 160-job expansion project there.
Economic Development Commission
Major projects in this mid-Maryland community of 132,000 included a 420-job expansion by Citicorp, a major investment by Mountainside Teleport that will create 100 new jobs and a $124-million investment by Mack Trucks that will retain 1,100 jobs.
Timothy R. Troxell, executive director of the Hagerstown-Washington County Economic Development Commission, credits the state’s Maryland Advantage Program for its work with existing companies. The county’s designation as a foreign trade zone and his commission’s new business development specialist have both been positive factors in the area’s success.
Situated at the junction of Interstates 77 and 81, some 90 miles (145 km.) southwest of Roanoke, Wytheville and its surrounding county have beefed up their corporate roster and their internal economic development resources.
The community’s two major investments in 2002 were the new $65-million bottling facility for PBG (more than 200 new jobs) and the $39-million expansion by Klockner Pentaplast, which created 128 new jobs.
The county’s 1,210-acre (490-hectare) Progress Park has seen the addition of new sites, as well as a new access road and rail corridor.
Development Corp.
At the midpoint between Toronto and Detroit, London saw its share of automotive-related investment in 2002, including a $27-million, 67,815-sq.-ft. (6,300-sq.-m.) project by silicone seal manufacturer Starlim Sterner that will create 100 new jobs.
But other sectors have helped the city of 331,000 fare well in a down economy, with investments by Sysco Serco Food Service, spice company McCormick Canada, Medical Technology Inc. and research firm Stream International (a division of Solectron), which established a 900-person CRM project.
Two new efforts should only improve the London bridge between people and corporate investment: the founding of the London Region Manufacturing Advisory Council and the March 2003 launch of
Good Move London,
an employee recruitment program.
Development and Redevelopment
There’s no denying that the decision by IDEC Pharmaceuticals to locate their clinical and manufacturing operations has been the big deal in Southern California corporate real estate (see Southern California spotlight, p. 348). IDEC is currently building the first phase of its planned 1.37-million-sq.-ft. (127,273-sq.-m.), 1,500-employee project, which has a projected budget of around $1,000 per sq. ft. ($10,764 per sq. m.). Jane McVey, director of the Oceanside Economic Development and Redevelopment Dept., says the company’s rationale is easy to see.
Look at where the R&D research hubs are,
she says.
They’re clustered right next to a university.
In this case, the school is the University of California-San Diego, which has helped the entire region become the model for biotech industry development.
But Oceanside is no one-trick pony, as its Ocean Ranch Corporate Centre and Prescott Industrial Park welcome locations from the likes of golf apparel company Ashworth and Robert Mann Packaging. McVey thinks her agency’s dependability and accessibility bring it to the forefront, as its staff fosters a successful blend of laid-back lifestyle and go-getter attitude.
Wherever we can facilitate getting to the goal,
she says,
we do.
McVey also cites the always growing talent base.
Being coastal draws quality employees, and for coastal properties, we have relatively affordable housing,
she says.
We are a place where creative people want to be.
Dept. of Economic Development
Investments of $21 million from Comcast Communications and $9 million from General Dynamics helped make the year a good one in Prince William County, but what made it great was the $426-million investment by Eli Lilly and Co. in a 600,000-sq.-ft. (55,740-sq.-m.), 705-employee insulin plant at the community’s rapidly filling Innovation Park.
Work force quality and the teamwork of various agencies and property owners impressed the company. Today that teamwork continues, says Martin Briley, executive director of the Prince William Co. Dept. of Economic Development, as the department casts a broad net in preparation for a resurgent economy.
This community enjoys a diversity of existing industries – a major semiconductor presence, major pharmaceutical presence, federal contracting and subcontracting, high-tech, defense, and traditional industries,
he says.
We’re finding companies representing all of those areas, with the exception of semiconductors, continue to be interested.
Among the ancillary services strengthening an already surging portfolio is the agency’s new Web site, complete with a detailed site and building database.
Economic Development
In the Research Triangle Park area, expansions by companies with
-gen-
somewhere in their names are gen-erating plenty of economic momentum. Such is the strength of the region’s biotech and pharmaceutical core.
In 2002, Biogen announced a $213-million expansion, and new locations cam from Apothogen ($120 million) and Ingenix Pharmaceutical Services ($7 million). Which all goes to show that there’s something enduring and endearing about RTP. Created in 1959, it can still rightfully make its claim to the phrase
often imitated, never duplicated.
Actually, the competition is coming on very strong,
says Ken Atkins, executive director of Wake Co. Economic Development.
We are a recognized leader, but we have to work twice as hard to keep that lead.
Among the innovative programs the agency is pursuing is an e-mail campaign in the Netherlands and Sweden – designed to precede two scheduled trips to those countries this year – introducing biopharmaceutical firms to the area’s strengths. Atkins says the periphery of the tri-city metro is also seeing some increased activity in office and headquarters activity, customer service centers and
surprisingly, some manufacturing.
They are drawn to our well-educated work force, and this is a very good time to find workers here,
he adds, noting that the March unemployment rate of 4.9 percent is quite a bit higher than the 1.2 percent during 1999-2000, when the area was literally importing workers.
The group continues to focus on attracting life sciences, information technology and software development firms, to RTP and elsewhere. Crucial to that goal is the sense of community partnership modeled by Raleigh, Durham and Chapel Hill and their respective universities of North Carolina State, Duke and the University of North Carolina.
Chamber of Commerce
Bowling Green has a lot more going for it than its famous Corvette plant. Hill’s Pet Nutrition ($30 million investment), Mercury Plastics ($10 million) and Owl’s Head Alloys ($15 million) are part of this many-faceted economy. But the automotive industry – as evidenced by recent locations from Kiriu USA and Waltex – continues to be this metro’s heartbeat.
What they’re looking for is the proximity to not only the automotive industry right here, but access to the automotive industry in the north and the south,
says Margaret Peake Grissom, executive director of the Bowling Green Area Chamber of Commerce. She also gives credit to the strong presence of Western Kentucky University and the Kentucky Community and Technical College System for both nurturing talent and providing training resources.
Economic Development Division
Fifty miles (81 km.) east of Los Angeles is just far enough to be affordable. Business benefits from affordable electricity, thanks to Riverside Public Utilities economic development rates. And employees benefit from Riverside’s status as one of the most affordable places in California to own a house.
Part of the Inland Empire, Riverside welcomed locations and expansions by Trademark Plastics ($7.5 million) and Magnussen Furniture (12.5 million) in 2002. The biggest project was a $75-million, 120-job location by printer Quebecor World.
In addition, the agency, city and University of California-Riverside are jointly developing a 56-acre (23-hectare) University Research Park, catering to technology companies. Park tenants receive the double benefit of being in both a redevelopment area and a state enterprise zone, entitling them to multiple financial incentives.
Economic Development
An assortment of traditional manufacturing investments have created the momentum in this small city of 50,000. Laminated tubing manufacturer Essel Propack is growing by $21 million and 81 jobs, and was pleased with having its project operational one month ahead of schedule. Goodyear Tire & Rubber is adding 50 new jobs and investing $16.8 million in an expansion and Nestle USA is adding 50 new jobs with its own $5.5-million expansion.
Ronald B. Bunch, director of the Danville Office of Economic Development, credits the agency’s Quick Start build-to-suit program and an assortment of technology enhancement and economic stimulus grants for helping Danville to its sterling year.
This Northwest Chicago suburb saw its biggest location of 2002 come from Matsushita Electric Corp. of America’s Panasonic division, creating 200 new jobs and occupying 150,000 sq. ft. (13,935 sq. m.) A diversity of corporate tenants has enabled this community to thrive in a tough economy.
Chris J. Manheim, vice president of economic development for the Elgin Area Chamber of Commerce, says that several initiatives are increasing the city’s profile: the
It’s Happening Here!
campaign to target Chicago area corporate decision-makers; a work force development committee that includes high schools, Elgin Community College and healthcare providers; and 60 visits a year to area businesses from the Chamber’s business retention/expansion committee.
Impressive numbers all around from the Miami-Dade County area are diluted only by having to be spread among its growing population of 2.3 million people. Accomplishments in 2002 included the retention of Ryder System’s world headquarters, which preserved 800 jobs and spurred the decision to build a new $40-million headquarters. That project is the feather in the cap for the Council’s newly launched Local Business Priority Program.
Miami-Dade Co. led the state in employment growth for eight of the last nine months of 2002. And it gained recognition for its attraction of foreign firms. But the true measure is in the companies you keep.
In Miami-Dade County, we have learned that the majority of new jobs are created by existing business and that even though we located 17 new foreign projects in 2002, our best prospects are in our backyard,
says Frank R. Nero, president and CEO of the Miami-Dade Beacon Council.
New trade initiatives with Mexico and better utilization of a border crossing by a truck-friendly high-speed freight corridor are two of the major factors contributing to Odessa’s continuing development.
Family Dollar is locating a 1-million-sq.-ft. (92,900-sq.-m.), $92-million distribution center that will employ 500 people. Neil McDonald, director of economic development for the Odessa Development Corp., credits the agency’s ability to work with small firms too, seven of which created or retained more than 125 jobs during 2002 using the agency’s assistance.
When your service area comprises 10 counties and their assorted institutions and townships,
alliance
really says it all. And in the case of the Pittsburgh Regional Alliance, it’s more than just part of the name.
Using new programs like the Community College of Allegheny County’s Industry and Education Exchange program (INDEX), which involves 67 partners in work force development assistance, PRA has helped to attract locations from Askesis Design Group and Convergent Lending, and major expansions from GlaxoSmithKline ($39 million, 560 jobs retained, 260 jobs created) and Mitsubishi Electric ($16 million, 215 jobs retained, 100 jobs created).
Ronnie Bryant, president and COO for PRA, points to the establishment of the National Center for Defense Robotics as a significant milestone for the region.
Equally important is the International Forums program. As a result, 113 meetings with international companies and individuals have taken place, as well as expansions by British firms AMTECH Power Software and Mechline Developments Ltd.
Homegrown Dana Corp. was the leading investor in Toledo in 2002, with a $55-million, 275-employee expansion. Joining the growth trend were Toledo Molding & Die, Lear Corp. and Freudenberg-NOK/Corteco.
Several efforts are under way by the Regional Growth Partnership to foster internally-driven growth in the area, including establishment of a $20-million venture capital fund and the creation of an airport-based incubator for international companies.
In addition, the Medical College of Ohio Technology Park has invested in a $1.8-million expansion.
Economic Development
The big deal in Medford was the $50-million investment by direct marketer Bear Creek Corp., which will retain 3,000 jobs and create 1,500 more over the next five years. But other developments have come to pass, including MasterBrands Cabinets’ $10-million expansion in Grants Pass that doubles the payroll to 600.
Key to the Bear Creek expansion was the establishment of the state’s 48th Enterprise Zone in Medford. The county hopes to gain even more visibility through the newly enhanced real estate capabilities of its Web site.
Economic Development
Sweetheart Cup brought a sweetheart of a deal to this southernmost of the six Chicago metro counties: a $35-million, 100-job distribution center. But that’s not the only big project to emanate from this surging area.
When we’re talking about the Chicago MSA today, we’re really talking about Will County,
says Brian McKiernan, senior managing director and Midwest area manager for Cushman and Wakefield.
McKiernan says Will County posted the only increase in industrial development in 2002 in the Chicago MSA and will likely be the only bright spot in the region through 2004.
At the giant CenterPoint Intermodal Center in Elwood, Potlatch Corp. is establishing a 450,000-sq.-ft (41,805-sq.-m.) distribution facility for paper products. And Southern Wine & Spirits is building its own distribution center, employing 115 and investing $25 million.
Cushman and Wakefield senior director Brendan Kelly projects some 10 million sq. ft. (929,000 sq. m.) of new construction in the county in 2003, and predicts that the manufacturing sector will begin to occupy more of that space.
John E. Greuling, president and CEO of the Will County Center for Economic Development, knows that big numbers aren’t everything – you have to have the platform to support them.
Growth is dependent on the ability of communities to provide infrastructure and maintain a friendly business climate,
he says.
