Strategic Economic Development Master Plan Strategic Economic Development

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 1) 2) 3) 4) 5) 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 1) 2) 3) 4) 5) 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 $1, 293, 000 Omaha Tulsa $1, 400, 000 Des Moines $2, 000 Topeka $2, 000 Kansas City $2, 900, 000 Oklahoma City $3, 500, 000 $0 $1, 000 $2, 000 $3, 000 $4, 000

Proportional funding - 2002 ED, Community Marketing and Workforce Development Wichita $850, 000 Tulsa $930, 000 Omaha $980, 000 Oklahoma City Kansas City Des Moines Wichita area funding if it were at the per capita level of. . . $1, 750, 000 $2, 200, 000 $2, 400, 000 Topeka $6, 400, 000 $0 $2, 000 $4, 000 $6, 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 1. Aviation 2. _______ 3. _______ 4. _______

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

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

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

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

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

C & I base expansion Site selection factors – “deal killers” 1. Availability of skilled labor (incl. R&D) 2. Labor costs 3. Tax exemptions 4. State and local incentives 5. Highway accessibility

C & I base expansion Site selection factors – “deal killers” 6. Corporate tax rate 7. Proximity to major markets 8. Occupancy or construction costs 9. Energy availability and costs 10. Environmental regulations

Steve’s close Big finish goe$ here!