Economic Vitality Corp. (EVC) Local Economy. Countywide Economic Strategy
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1 Economic Vitality Corp. (EVC) Local Economy Countywide Economic Strategy 1 ABOUT US Economic Vitality Corporation Non-Profit 501(c)(3) Only countywide economic development organization Public / Private Partnership Est Year Anniversary Board of Directors: 37 business leaders & elected officials Sponsors: Approx. 100 Monthly newsletter reach: approx. 3, Agenda Item No. 4 City Council Meeting 11/17/2014 1
2 RESOURCES Resources to help start and grow local businesses Business Counseling, Connections & Capital BusinessAdvocacy International Trade Consulting Community Infrastructure Business Seminars with partners Private Investor Networks Economic & Industry Evaluations Business Loan Referral Program 3 4 2
3 Chairman - Eric Schwefler, CPA Partner, Caliber Accounting & Tax Vice-Chair Bruce Ray President & Publisher, The Tribune Past-Chairman - Michael Silacci External Affairs Director, AT&T At-Large - Kris Vardas Council Member, Pismo Beach Treasurer Steve Harding Regional President Rabobank, N.A. Board Counsel & Secretary Ziyad Naccasha, Esq. Carmel & Naccasha Dan Carpenter Council Member, San Luis Obispo Michael Cannon, President, Cannon Jolie Ditmore, Co-Founder, Medicorp Henry Dubroff Chairman, Pacific Coast Business Times Carl Dudley Exec. V.P., Mission Community Bank Dawn Legg, Project Manager, First Solar Kevin Meyer, Managing Partner, Gemba Academy LLC Representing every industry, education, each city, county BOARD OF DIRECTORS 37 Jolie Ditmore, CEO Medicorp Adam Hill County Supervisor, 3rd District Stacie Jacob Executive Director, Visit SLO County Dave Juhnke, Managing Partner Sinsheimer Juhnke McIvor & Stroh Bob Kelley Council Member, City of Atascadero John King Principal, Boutique Hotel Collection Christine Johnson Council Member, City of Morro Bay Tim Mahoney District Manager, So. Cal. Gas Company Noreen Martin President & CEO, Martin Resorts Kevin Meyer Past-Pres., Specialty Silicone Fabricators Brendan Morris CEO, Morris & Garritano Debbie Peterson Council Member, City of Grover Beach Jim Guthrie Council Member, City of Arroyo Grande Caren Ray County Supervisor, 4 th District Ty Safreno CEO & CTO, Trust Automation Darren Smith CEO, Compass Health Ed Steinbeck Council Member, City of Paso Robles Linda Hendy SLO County Chamber Executives Gil Stork Superintendent / President, Cuesta College Charley Senn Board Member Emeritus Tom Sullivan Board Member Emeritus Brian Tietje Cal Poly State University Tim Williams President, Digital West Kevin Harlan, COO 5 Huntington Broadcast Management Group EVALUATING DRIVERS OF ECONOMY Commissioned Industry Evaluations Work with industry leaders Evaluate Industry Challenges and Opportunities Focus on job creation and benefits to communities AIR SERVICE WINE INDUSTRY TOURISM 6 3
4 COUNTY IN TOURISM SPOTLIGHT 7 EMPLOYMENT / DEMOGRAPHICS Gross Product SLO County: $12B 2013; $13B in 2012; $11B in 2008; Economic drivers of County: tourism, agriculture, education, government Major Employers (2013) 66% -- private sector 19% -- government (compared to 15% in California) 11% -- self-employed (highest rate of sole proprietorships in state) Employment Breakdown (2013) Approx. 7,900 companies 56% 1 4 employees 20% % %
5 ECONOMIC CHALLENGES Lacks head-of-household jobs Companies challenged to attract employees from outside region Region lacks critical mass (number) of companies Lower Median Income than California average Highest gasoline prices in the State Highest airfares in the State Healthcare Providers receive 25% less than neighboring counties One of Least Affordable Housing Markets in the Nation (Jobs / Housing Imbalance = median home price versus median income) 9 ECONOMIC STRATEGY PROJECT Phase 1: Diagnosis of economy
6 ECONOMIC STRATEGY PROJECT Assessment: Industry Trends Example Occupations in Clusters Annual Earnings per Cluster Federal Earnings per Cluster Cluster Status 11 CLUSTER ASSESSMENT 12 6
7 Phase 1: Diagnosis of economy Project Video (click here) RNUvGtgHsAM 13 Economic Strategy Project ABOUT PROJECT First-ever project countywide economic strategy Public / Private Partnership paid by County, companies Assessment of, strategy for economy sustainable sectors Economic, Social, Environmental Focus Public Input from approximately 125 CEOs, and 440 public comments 14 7
8 ECONOMIC STRATEGY FOCUS: SIX CLUSTERS Building Design & Construction Green Energy Health Services Knowledge& Innovation Specialized Manufacturing Uniquely SLO County ECONOMIC STRATEGY Accomplishments Working with the business community and local government 1. Project endorsement by County Supervisors 2. Update of Economic Element of County General Plan 3. Economic Analysis Program Pilot Project 4. Business Assistance Team Pilot Project 5. Regional Economic Forums / California Economic Summit 6. CALED Award of Merit Two statewide awards 8
9 ECONOMIC STRATEGY Accomplishments CONTINUED Local Employers Job Fair Collaboration with Cal Poly and Cuesta in fourth year 805connect Online Tri-county resource for B2B commerce. 1,000 members. Broadband Consortium Pacific Coast Tri-County grant, evaluates broadband access Solar Farms Helped advocate world s largest solar projects. Over 1,000 jobs. County Process Improvement Committee Land Use and permitting policies. ECONOMIC STRATEGY Accomplishments CONTINUED Workforce Housing Survey Survey employers / employees, and published survey findings Infrastructure Committee County and industry collaboration on finding infrastructure solutions and financing Solarize SLO Residential group solar purchasing program. Last year created 107 installations and $3.7M economic impact Energy Efficiency Financing Promote energy financing resources 9
10 WHY THE EVC FOCUSES ON AIRPORT An economic engine of County $ M economic impacts annually Helps tourism a big part of our economy All industry clusters need more flights Airlines need businesses involved (majority source of airline revenue) Airport capital projects have big impacts HOW EVC HELPED AIRPORT Established SLOCATA (SLO County Air Transportation Alliance) 2008 Commissioned survey of traveling passengers needs Created outreach and education about air service Several meetings at airlines Helped add over 90% of seats lost since 2008 Helped obtain DOT Grant of $500K Countywide Economic Strategy infrastructure, jobs Convener of airline, airport and stakeholders 10
11 LOCAL AIRPORT STATS San Luis Obispo County RegionalAirport positive performance: Passenger traffic growing 14 consecutive months of increasing enplanements YTD 13.8% over last year 2014 monthly growth rates between 10% - 15% 2013 average growth rate was 5%, historical growth was approx. 3% AIRLINE INDUSTRY CHALLENGES The following airports recently announced reductions or elimination of all service: Redding, CA Chico Modesto Santa Barbara Bakersfield Monterey Santa Maria Klamath Falls, OR Yuma, AZ 11
12 OUR AIRPORT OPPORTUNITIES Attracting more flights (possibly Denver, Seattle, Sacramento) New terminal to better accommodate passengers, more flights, and larger airplanes More connections provides more competitive airfares and travel options Convert more passengers to use our airport instead of others Retain companies and jobs locally that need more flights More stable and diversified economy Hybrid air taxi service ECONOMIC OPPORTUNITIES ABOUT PROJECT First-ever project countywide economic strategy Public / Private Partnership paid by County, companies Assessment of, strategy for economy sustainable sectors Trans-Pacific Fiber Optic Cables Economic, Social, Environmental Focus Input from public business community and county government County has highest Developed for, and driven by, the business number of trans-pacific fiber opticcommunity cables in North in cooperation with local government America Tech companies remain high job creators locally 24 12
13 ECONOMIC OPPORTUNITIES -- Broadband ECONOMIC OPPORTUNITIES More broadband connectivity throughout County Market local business sectors to retain / attract talent Promoting local companies to diversify and attract jobs More policies friendly to job creation Access to Investors to grow companies 26 13
14 BUSINESS RESOURCES -- EVC PARTNERS 27 EVC COAST CAPITAL NETWORK 28 14
15 POSITIVE PUBLICITY FOR COUNTY
16 CALIFORNIA ECONOMIC SUMMIT 1. Smart Regulations 2. Smart Workforce 3. Smart Innovation 4. Smart Capital 5. Smart Infrastructure 31 Clusters Are Important to the Community TheyDriveaVitalCycle 32 16
17 WHAT OUR SPONSORS ARE SAYING 33 Thank you Michael Manchak President / CEO Economic Vitality Corporation San Luis Obispo mmanchak@sloevc.org
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