San Jacinto Economic Development Program January 3, 2008
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1 San Jacinto Economic Development Program January 3, 2008
2 SAN JACINTO ECONOMIC DEVELOPMENT PROGRAM I. Introduction II. Economic Development Program III. Budget IV. Flowchart V. Schedule
3 A. Background I. INTRODUCTION San Jacinto History 2006 Progressive New General Plan 1995 Former Economic Development Strategy
4 I. INTRODUCTION B. The Value of an Economic Development Program Economic development is purely and simply the creation of wealth in which community benefits are derived.
5 I. INTRODUCTION B. The Value of an Economic Development Program Over 8,000 organizations in U.S., not including chambers of commerce Over 200 California cities have programs 71 percent of the 33 California counties have an economic development program
6 I. INTRODUCTION B. The Value of an Economic Development Program GOVERNMENT ROLE Economic development is a concerted effort on the part of the responsible governing body in a city or county to influence the direction of private sector investment toward opportunities that lead to community wealth. There is no alternative to private sector investment as the engine for economic growth, but initiatives can be supported to encourage investments where the community feels they are needed the most.
7 I. INTRODUCTION B. The Value of an Economic Development Program BASIC TIER COMPANIES FOUNDATION FOR SUCCESS Higher Wages Community Investment Purchasing Power Multiplier
8 I. INTRODUCTION C. The emergence of retail in California Economic Development Programs POINT OF SALE Money goes to city where sale consummated, not to the city whose resident generated the sale
9 I. INTRODUCTION C. The emergence of retail in California Economic Development Programs 2006 Hemet sales tax leakage 300+ million $172 per resident Hemet $47 per resident San Jacinto
10 I. INTRODUCTION C. The emergence of retail in California Economic Development Programs 120,000 square foot industrial building will generate $9,000 in property tax 120,000 square foot Costco can generate 1 to 2 million in sales tax
11 I. INTRODUCTION C. The emergence of retail in California Economic Development Programs Quality of life Employment
12 I. INTRODUCTION C. The emergence of retail in California Economic Development Programs Circulates local dollars and does not inject growing levels of new money into a community Secondary tier only succeeds when other sources generate income
13 I. INTRODUCTION Basic Tier Jobs vs. Sales Tax California cities have a bifurcated agenda. Oregon has no sales tax. Nevada distributes sales tax on a per capita basis. Focus on basic tier. San Jacinto s program will be balanced between job & sales tax generators. I WANT YOU
14 I. INTRODUCTION D. Community Vision & Goals for Economic & Retail Development Vision Desirable & high paying jobs Business enterprises that have a future Symbiotic relations between public & private sectors A wealth of community amenities
15 I. INTRODUCTION E. Community Assessment (SWOT) Internal Strengths Small Community Identity/Lifestyle Access to Open Space Isolation from Urban Problems Affordable Housing Strong Residential Image Abundant New Housing Growing Retail Base Workforce Advantages Growing Latent Resident Labor Force Competitive Labor Costs Availability of Semi-Skilled and Unskilled Workers Stable Employer Base Cost of Land and Built Space Gateway Development, West Hemet Land Use, Small Industrial Parks Developments, Transportation Corridor Opportunities Neutrals Political Support for Non- Retail Development Economic Development Delivery System Visibility to Potential Market Organizational Follow Through Leadership/Direction Personal and Property Security Mt San Jacinto College Weaknesses Site Availability Lack of Speculative Buildings Lack of Developable Land Quality of Existing Buildings Availability of Move Up Space for Local Expansion Infrastructure Local Entertainment Opportunities Workforce Disadvantages Availability of Skilled Mfg/Technical and Managerial Workers Highway 215 Entrance to the Valley
16 I. INTRODUCTION E. Community Assessment (SWOT) Availability of sites and buildings short term The greatest economic development opportunity for the San Jacinto Valley
17 I. INTRODUCTION E. Community Assessment Retail SWOT Residential Growth & Rising Demographics Growing Market & Trade Area Workforce Strengths Site Availability Weaknesses Lack of High End Demographics Development Fees Regional Geography Limitations Opportunities Gateway Area, Nexus of Two Transportation corridors Regional Commerce Hub Large Hispanic Market Threats Retail Center emerging South, West & North of the Gateway
18 II. ECONOMIC DEVELOPMENT PROGRAM A. Common and Best Practices Business attraction and recruitment Business retention and expansion Business creation or entrepreneurialism
19 II. ECONOMIC DEVELOPMENT PROGRAM 3 Business Types Elephants, Mice & Gazelles Elephants Fortune 500 and many Business Week 1,000 have lost more than 4.0 million jobs since 1980 Mice are the micro enterprises the sole proprietorships, partnerships, and other small businesses that provide a paycheck for nearly half of all Americans Gazelles the rapidly growing small businesses in the $5-to $10-million range. About 75% of new jobs are generated by Gazelles 4% of the companies
20 II. ECONOMIC DEVELOPMENT PROGRAM Ownership Types Swashbucklers are entrepreneurs who like to grow a business, not just run it. They like to create new jobs and new wealth Pilgrims are people looking for a better life, entrepreneurs who simply want to make a job for themselves
21 II. ECONOMIC DEVELOPMENT PROGRAM
22 II. ECONOMIC DEVELOPMENT PROGRAM Job Growth: 20% Attraction & Recruitment 80% Retention & Expansion (IEDC, International Economic Development Council)
23 II. ECONOMIC DEVELOPMENT PROGRAM Goals are end objectives Strategies are overall work plans Tactics are the means to carry strategies out
24 II. ECONOMIC DEVELOPMENT PROGRAM Goal 1. Facilitate 100 new desirable jobs in non-retail sectors that have a future and provide income levels at or above $35,000 Strategy: Aggressive business attraction and recruitment program, targeting gazelle s, and a sound local business expansion program
25 II. ECONOMIC DEVELOPMENT PROGRAM Marketing Tactics Target Branding for San Jacinto Valley Strategic Newsletters & Blasts Tradeshows and Marketing Events
26 II. ECONOMIC DEVELOPMENT PROGRAM Recruitment Tactics Invitation mailers to selected CEO s & decision makers Follow up calls and call tracking Sales Missions / Retreats Company Attraction Tactical Consortium CATCH
27 II. ECONOMIC DEVELOPMENT PROGRAM Business Expansion Tactics Expansion Visitation Program Economic Gardening Programs ESRI Business Analyst, Cal State San Bernardino & Chico University programs
28 II. ECONOMIC DEVELOPMENT PROGRAM Goal 2. Retain desirable jobs with local nonretail businesses that have a future and provide income levels at or above $35,000 as of 2007 Strategy: A productive business retention program supporting major and strategic employers
29 II. ECONOMIC DEVELOPMENT PROGRAM Business Retention Tactics Retention Visitation Program Monthly Business Spotlight Mayor s Executive Roundtable Business Surveys Business License Survey every 3 years
30 II. ECONOMIC DEVELOPMENT PROGRAM Goal 3. Enhance economic development infrastructure and resources Strategy: Determine key economic development infrastructure projects and execute a plan that will facilitate their expediency and success
31 II. ECONOMIC DEVELOPMENT PROGRAM High Priority Projects Levee Highway 79 and Mid County Parkway Economic Data Bases/Tool Chest Home Demography Program Spec Property and Building Inventory GIS Technology Web Site Master Gateway EIR
32 II. ECONOMIC DEVELOPMENT PROGRAM Goal 4. Develop collaborative relationships with other economic development partners Strategy: A structured plan of ongoing contact, dialogue, & joint initiatives with economic development partners
33 II. ECONOMIC DEVELOPMENT PROGRAM Partnership & Collaboration Tactics New Business Welcome Program Collaborations programs with other ED Partners: HSJ EDC Team Riverside Chamber of Commerce GSMART ICSC NAIOP REAP SBDC Mt. San Jacinto College
34 II. ECONOMIC DEVELOPMENT PROGRAM B. Strategies and Tactics for San Jacinto Goal 5. Raise per capita sales tax revenues and business investment in the community annually Strategy: Business attraction and expansion strategies for business investment & an equally aggressive retail attraction program for sales tax
35 II. ECONOMIC DEVELOPMENT PROGRAM D. Implementation Plan and Deliverables
36 II. ECONOMIC DEVELOPMENT PROGRAM E. Monitoring, Evaluation and Upgrading
37 III. BUDGET
38 IV. FLOWCHART
39 V SCHEDULE
40 San Jacinto Economic Development Program January 3, 2008
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