Northern Arizona Council of Governments Economic Development District Mid-Year Report

Transcription

1 Northern Arizona Council of Governments Economic Development District Mid-Year Report Performance Progress Report ED17SEA October 1, 2017 February A summary of the activities of the Economic Development Council under the leadership of the Regional Council and NACOG Regional Director Teri Drew

2 Executive Summary 1

3 Northern Arizona Council of Governments Economic Development District Mid-Year Report Performance Progress Report ED17SEA October 1, 2017 February Executive Summary The first half of Program Year has been encouraging for the NACOG Economic Development District, particularly for the coalimpacted communities of Navajo and Apache Counties. In preparation for the imminent closure of the Kayenta Coal Mine, Navajo County sought out a share of the U.S. Department of Commerce 2017 Assistance to Coal Communities Initiative, and received funding in the amount of $104,265 to support the preparation of an economic assessment and recovery strategy. Other awards granted in the NACOG region included $154,016 to the Navajo Nation, Window Rock, to support the preparation of a commercial plan to mitigate the adverse effects of the closure of the Navajo Generating Station (NGS) in Page; $128,805 to the Hopi Tribe Economic Development Corporation to support the development of a business incubator program in response to the pending closure of NGS; $137,000 to the Hopi Tribe to support the preparation of an economic diversification analytical study to assess economic opportunities in industry not dependent upon coal mining; and $99,999 to Arizona State University, in partnership with Northern Arizona University, to support the preparation of a plan to transition from energy production based upon coal to renewable energy in Page. Less than $1 million of the $30 Executive Summary 2 CEDS Vision The NACOG-EDD is an economically diverse regional collaborative that is proactive in its efforts to ensue economic resiliency and quality job opportunities for all to thrive and prosper. We strive to Preserve traditional heritage and enhance quality of life. Be good stewards of our natural resources. Be accountable for future generations and to each other. Expand quality education and business opportunities. CEDS Mission The NACOG-EDD is a collaborative regional approach that provides leadership in the creation of foundations necessary to foster business opportunities, assist entrepreneurs and encourage innovation throughout the region to ensure long-term success.

4 million funding pool was made available to the Seattle Region, and the NACOG District received more than half of the funding amount, totaling $624,085. The NACOG EDC is grateful for the opportunity to hear from several knowledgeable and renowned speakers from across the State of Arizona through presentations given, such as the following: Arizona Corporation Commissioners Andy Tobin and Boyd Dunn presentations on Broadband and Forestry Initiatives Arizona Office of Tourism (AOT) Executive Director Debbie Johnson State of the State Address (Fall Tourism Forum) Arizona Lodging and Tourism Association (AzLTA) Executive Vice President David Drennon Arizona Lodging and Tourism Trends (Fall Tourism Forum) Local First Arizona Northern Arizona Director Ruth Ellen Elinski Telling Your Local Story (Fall Tourism Forum) USDA Northern Arizona Community Programs Director Jeff Hays Projects Update At the regular August 3, 2017 meeting of the NACOG Economic Development Council (EDC), the EDC hosted representatives of the Arizona Corporation Commission to learn about broadband funding opportunities and forestry bio-industry initiatives in rural Arizona. Commissioner Andy Tobin shared news of a limited-time opportunity to expand broadband for rural Arizona school and library districts, the Arizona for Broadband Education Initiative. This initiative, spearheaded by Commissioner Tobin and Arizona Governor Doug Ducey, draws over $100 million from the expiring E-Rate (a federal program that provides discounts to schools and libraries for affordable telecommunications and internet access), utilizing matching funds from the Arizona Universal Service Fund (an excise tax that has been billed on cell phone service for approximately 30 years). Commissioner Tobin encouraged quick response from the NACOG District to take advantage of this funding opportunity to build and expand infrastructure throughout rural Arizona before the expiration of the funding opportunity in December At this time, discussions are moving toward regional, statewide and interstate efforts via Northern Arizona University (NAU), the National Regional Optical Network Organizations, intertribal councils, tribal colleges, tribal villages, nations and state university systems in California, Arizona and New Mexico. Forestry biomass industry has also been a topic of piqued interest, as Arizona Corporation Commissioner Boyd Dunn shared at the same meeting. In the interest of accomplishing forest thinning throughout the 5 National Forests in the NACOG District, heightened awareness of the impact of utilizing forest waste products in biomass energy exploration, as well as many other forest bi-product industries is being realized across the District. Along with improving forest health, protecting watersheds, water quality and infrastructure, the potential economic impact to the District from forest bi-product industries is promising. Executive Summary 3

5 August 3, 2017 Economic Development Council meeting with Arizona Corporation Commissioners Andy Tobin & Boyd Dunn At the February 2, 2018 EDC meeting discussions revolved around the Goals and Priorities of the EDD for 2018, and included projects that promote base sustainable jobs and community stability. Projects are categorized to build and improve Capital Availability, Physical Infrastructure, Sustainable Ecological Resources, Business Retention and Expansion, Attractions of Basic Sector Industry, Transportation, Tourism and Technical Assistance. Also discussed at this meeting was a draft update to the CEDS, as required by EDA, to include a section dedicated to disaster resiliency ; a description of how the District responds to natural disaster as well as economic challenges that affect the stability of the communities involved as well as the region. Upon approval of the EDC and Regional Council, the draft update was submitted to EDA and has received approval for addition to the CEDS. The EDC Tourism Committee continues to expand on the CEDS Goal to improve the quality of life and unique natural/cultural amenities as well as outdoor recreational opportunities that make Northern Arizona a great place to live and visit. To achieve this mission, the Tourism Committee has outlined the following Objectives and Goals, based on the CEDS Target Opportunities Tourism and Experience: Objective #1: Partner with the Arizona Office of Tourism and other state and regional tourism organizations to promote their marketing programs, training programs and events throughout the EDD. Goals: Attend and give information on Tourism events in the state and region Improve communications with EDC and Regional council and committees on Tourism initiatives Education seminars to support communities Objective #2: Serve as an informal resource for assistance to EDD communities regarding marketing/ promotions and encourage regional joint marketing opportunities. Executive Summary 4

6 Goals: Create a link on NACOG s website for assistance on Tourism issues in the region Act as a resource bureau Add Tourism s bios to NACOG website Offer Case studies - Best Practice Subcommittee - advocate for Tourism Attend events related to Tourism Objective #3: Continuing to strengthen sub-regional tourism efforts though the sharing of best practices, promotion and product development. Goals: Demonstrate product development for rural areas Provide Power Point Presentations on the Economic Impact of Tourism in the NACOG Region and other documents in support of tourism areas The 2017 Fall Tourism Forum, held October 11-13, 2017 in the White Mountains of Pinetop-Lakeside, Arizona, was a great success. Nearly 70 attendees gathered at the Pinetop Country Club and heard from statewide and local tourism professionals and networked with their fellow tourism business folks, city and county elected officials and leadership. Tourism is the 2 nd largest industry in the state of Arizona, and particularly in the Northern Arizona District, home to the Grand Canyon. Topics of discussion at the Forum focused primarily on marketing and tourism best practices. October 11-13, 2017 NACOG Fall Tourism Forum, Pinetop Country Club, Pinetop-Lakeside, Arizona (Friday Morning Session) Economic Update Of continued concern across the District is the economic impact of the pending closure of NGS, the Kayenta Coal Mine and other coal-related industries, particularly in Apache, Navajo and Coconino Economic Update 5

7 Counties. Apache and Navajo Counties continue to remain designated distressed areas due to the high unemployment rate and per capita income. The Arizona Public Service (APS)-owned Cholla Power Plant in Joseph City, Arizona is operating on reduced capacity, with uncertainty over its future. Cholla Power Plant, Joseph City, Arizona In 2016, APS shut down Unit 2 of the plant. The primary reason for the partial shut-down was economics, according to a January 7, 2017 article in The Holbrook Tribune News. Anne DeGraw, a communications consultant with media relations at APS, cited economics, EPA regulations and regional haze rules that can affect when coal burning plants are allowed to operate. Economically it is much cheaper and easier to burn natural gas. Although the option to convert the plant to a natural gas remains under research, DeGraw did not anticipate any changes in the operations of Units 1, 3 and 4. 1 The Coronado Generating Station, located near St. Johns, Arizona (owned by Salt River Project (SRP)) has received an operational permit extension from the Environmental Protection Agency (EPA) through the year APS officials are noncommittal on Cholla Power Plant s future by Chanae Nielson, The Tribune News 1/7/2017 Economic Update 6

8 Coronado Generating Station, St. Johns, Arizona The U.S. EPA Administrator Scott Pruitt stated that the Trump administration is eliminating one of the signature climate change policies set in place by the former administration the Clean Power Plan. That plan s focus was to cut carbon emissions from power plants as part of the U.S. role in the international Paris Agreement on Climate Change a rule that oversteps the EPA s powers. Pruitt also announced the EPA and Trump administration s approval of state plans dealing with haze and clean air a move that will help keep SRP s coal-fired Coronado Generating Station stay open. 2 2 EPA Chief: Obama climate change policy going away ; approves Arizona plan for haze, coal plant by Mike Sunnucks, Senior Reporter, Phoenix Business Journal, October 6, 2017 Economic Update 7

9 The Navajo Generating Station serves electric customers in Arizona, Nevada and California. The station also supplies energy to pump water through the Central Arizona Project. On October 5, 2017, the Bureau of Reclamation (BOR) and Bureau of Indian Affairs (BIA) issued a Navajo Generating Station Extension Lease Environmental Assessment which describes the potential environmental impacts resulting from federal actions that would approve a new lease for NGS and its related facilities. Without the lease extension, NGS would cease operations by the end of December 2017, requiring retirement of the plant to be complete by Under the extension lease, coal combustion at NGS would cease by December 22, Retirement of NGS would begin at that point and be completed by December 22, The lease provides five years for the SRP Agricultural Improvement and Power District to complete plant retirement and 30 years for long-term monitoring and remediation. The lease extension would also allow time for new owners to come forward to operate the plant beyond The assessment issued a Finding of No Significant Impact (FONSI) for the BOR and BIA approval of the NGS Extension Lease. The Navajo Nation task force and SRP on behalf of the other NGS owners 3 BOR Press Release, Dan DuBray/Reclamation; Nedra Darling/Indian Affairs October 5, 2017 Economic Update 8

10 negotiated the new lease and related agreements in good faith over a period of several months. The remaining actions necessary for final approval of a new lease for NGS have been completed, meaning the plant can continue operating through December Importantly [sic] to us, the new lease paves the way for SRP employees at the plant to remain on the job for up to an additional two years and allows us to fulfill our commitment to redeploying all regular NGS employees to other SRP facilities by 2019, said Mike Hummel, Deputy General Manager of SRP, the plant s operator. 4 While this is good news, plans to move forward with complete closure of NGS continue as alternative energy sources and workforce training solutions are being sought. Coconino County is well underway with utilizing the POWER grant funding received last year to build a training facility near Page, to repurpose the skills of the coal-industry workforce in the area. Navajo County has taken a pro-active stance in response to the pending closure of the Kayenta Mine and Cholla Power Plant by applying for and receiving the ACC grant funding to conduct an assessment and recovery strategy. The Navajo Nation and the Hopi Tribe have also applied for and received ACC funding for similar studies. ACC Grant recipient Arizona State University and Northern Arizona University will be working together in collaboration with the Navajo Nation on a plan to transition from energy production based upon coal to renewable energy in Page. The Navajo Nation is pleased to hear the EDA has funded ASU s proposal. The Nation is collaborating with ASU and NAU to look at renewable energy development possibilities. The Nation looks forward to developing this relationship with the much needed funding, the Native American Tribe said in a statement. 5 According to a Coconino County leadership report from August 2017; More than jobs disappear with the impending closure of both NGS and Peabody Coal Mine. Disruptions are already occurring as business owners delay plans for expansion, new businesses decide against relocating to the area, schools struggle to fill positions, families make tough decisions about selling their homes, youth delay plans for higher education, local shelters report an increase in domestic violence, and the future becomes unclear for all. SRP has reported that 100 jobs are being held vacant resulting in the loss of income and tax revenues. The closure is now a reality due to the Navajo Nation signing a lease agreement on July 1, 2017 that will result in operations being shut down in The complete closure of the Navajo Generating Station will result in mass layoffs and the loss of revenues to already distressed areas, posing a regional threat to Coconino County, the Navajo Nation, Navajo County, and the Hopi Tribe. The Governor s Office of Economic Opportunity has projected the economic impact of the Navajo Generating Station and 4 SRP Press Release, Scott Harelson, SPR November 29, Arizona tribes, ASU get Trump coal money by Mike Sunnucks, Senior Reporter, Phoenix Business Journal October 11, 2017 Economic Update 9

11 Kayenta Mine closure in relation to job loss to be as follows: 2018 will reflect a loss of 2,236 jobs, 2019 will reflect a loss of 2,774 jobs, and 2020 a loss of 3, 051 jobs. Effects are already being felt in Navajo County, as reflected by a decrease in tax receipts and a layoff of 40 Navajo County employees in Employment Factors Hospitality-related industries continue to be that top employment sector in Coconino County 7, particularly in Page, which boasts over 2,200 hotel rooms. However, tourism is seasonal in Page, and couple that with the significantly lower wage offering in the tourism industry as compared to the 500 high paying jobs at NGS being eliminated, prospects for adequate income for these technical professionals is drastically reduced, leaving them with the choice of relocating or adjusting to a much less stable financial situation. In addition to this, with NGS being fueled by coal from the Kayenta Mine, the loss of nearly 400 mining jobs duplicates the economic disparity of the area. Unemployment Statistics Each of the 4 NACOG counties experienced an increase in unemployment in December, 2017, as did the State of Arizona as a whole. Apache County reflected a labor force of 19,834, with 17,792 employed and 2,042 unemployed; and an unemployment rate of 10.3%. This is a full 1.1% higher than the November statistics for Apache County. Coconino County had an available labor force of 74,381, with 70,661 employed and 3,720 unemployed, equaling an unemployment rate of 5.0% - an increase over November of 0.6%. Navajo County s labor force was reported at 42,637, and total employment in December was 39,611, leaving a difference of 3,026 unemployed. The 7.1% unemployment rate for December was 0.8% higher than November. Yavapai County reported a December civilian labor force of 100,289, with total employment of 96,029 and 4,260 unemployed. The reported 4.2% unemployment rate for Yavapai County was 0.2% higher than November s reported rate. 8 Overall for the NACOG EDD, the unemployment rate is 5.5% in December, as opposed to the 4.9% rate of November an increase of 0.6%. The Northern Arizona region through the EDC is now marketing job opportunities in broader geographic areas to draw the workforce back to rural Arizona and boost regional economic resilience. 6 Coconino County Proposal for EDA Assistance, Northern Arizona Regional Resilience (NARR) Revitalization for Local Success 7 Office of Economic Opportunity Arizona Labor Statistics Occupational Employment Statistics 12/27/ Office of Economic Opportunity in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics 2017 Economic Update 10

12 Wanted Analytics Talent Sourcing Report The labor market in Northern Arizona suffers from a lack of skilled workers and affordable housing opportunities within the region. The goal of the EDC is to market Northern Arizona as a great place to live and work, both to entice business and industry to locate or re-locate to the area, and to attract a skilled labor pool to move to the region to take advantage of the attractions and amenities available across the District. One marketing tool that NACOG utilizes is the Talent Sourcing Report, or Wanted Analytics. Wanted Analytics recently became a Corporate Executive Board (CEB) company and is now a part of its TalentNeuron solution. CEB is a best practice insight and technology company that partners with its customers to develop innovative solutions that unlock their potential and help them grow. CEB TalentNeuron Talent Sourcing Report provides the most comprehensive source of global talent demand and supply data, predictive analytics, insights into real-time job market and location data, and competitive intelligence to help you make informed recruiting and talent planning decisions. It provides recruiting organizations with real-time business intelligence on jobs, employers, and talent with data on hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions. CEB TalentNeuron Talent Sourcing Report contains tools and insight that can help employers, job seekers, recruiters and more by unlocking hidden reserves of candidates for hardto-fill positions, reduce time-to-fill by streamlining the relationship with hiring managers, analyze realtime employment trends, and Increase the strategic value of your department with on-demand access to company-level research that HR executives can use to gather valuable competitive intelligence on what your competition is doing. NACOG purchases this real time data reporting system to monitor and provide EDC regular updates and data for employment, education, and workforce needs within the four counties of Apache, Coconino, Navajo, and Yavapai. Based on the Talent Sourcing Report of December 28, 2017, there are currently 189,000 potential candidates in the workforce throughout the NACOG Region. There are 760 Direct Employers competing for employees, offering 5,293 open job postings with an average posting duration of 35 days. There are approximately 30 candidates for every job opening, and 248 candidates for each Direct Employer. In demand skills and certifications are (in order of demand): Skills Freight+ GS+ Tractor-trailers Bilingual English Speaker Certifications Commercial Driver s License (CDL) Driver s License Scaled agile framework (SAFe) Top 10 Job Titles (in order of demand): Registered Nurse Truck Driver CDL Teller Class A CDL Truck Driver Driver Registered Nurse Intensive Care Physical Therapist Driver CDL Customer Service Representative Merchandiser Economic Update 11

13 Certified Registered Nurse (RNC) Secret Clearance Of the candidate supply, there are 90,650 women and 98,350 men. Top employers are in the healthcare field, followed by transportation services and retail. The following is an update of the Scope of Work accomplishments to date (additions to last quarter in blue): ADMINISTRATIVE: 1. Develop Scope of Work Based on the Focus Areas and Goals of the NACOG EDD CEDS, the annual Scope of Work for will identify measurable deliverables and outcomes for the benefit of the District, including workshops and training seminars related to primary focus areas within the CEDS. 2. NACOG-EWD will work collaboratively with our Transportation Planning Department to partner applicable EDA projects with Arizona Department of Transportation (ADOT) funds to better align projects and resources for greater regional impact. The NACOG Economic Workforce Division and the Transportation Planning Department will collaborate as related projects are approved for presentation for EDA and other federal funding in order to protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns. A plan for Regional planning coordination includes the establishment of a Technical Advisory Committee comprised of representatives of local jurisdictions and Tribal Nations for the purpose of carrying out regional planning activities. 3. Lead discussion on NACOG EDD assessment goals for The Regional Director has been innovative in leading discussion around EDD assessment goals. The EDD assessments have remained virtually the same for the past several years. With local and national economic fluctuation comes the potential for adjustment in funding resources, and creative ingenuity is an essential piece to addressing the challenges brought by change. 4. Develop and secure meaningful partnerships and resources to assist with Regional Economic Impact Projects. Economic Update 12

14 Efforts toward regional collaboration within the EDD areas affected by the downturn of the coal industry have been ongoing, and will continue as partnerships are forged between these communities and local, state and federal organizations. REAL AZ, a regional organization in Navajo and Apache Counties has initiated discussions with NACOG, energy partners, transportation, and community leaders to address the economic impact of the loss of jobs at the Kayenta Coal Mine. The Economic Collaboration of Northern Arizona (ECoNA) is partnering with USDA, Coconino County leadership and local community leaders in Page, Arizona, where NGS and Peabody Mine are slated for full closure in The NACOG EDC maintains its partnership with these, and other, organizations that are actively participating in seeking out solutions to the economic future of these communities. The Greater Prescott Regional Economic Partnership (GPREP) and the Verde Valley Regional Economic Organization (VVREO) are 2 economic development partnerships in Yavapai County that actively engage in business attraction and retention. FOCUS AREA #1: Grow the Region s Business Opportunities The CEDS business development and retention focus areas are intended to recruit businesses to the region, grow businesses to expand and strengthen the regional economy, and promote new businesses through entrepreneurship. GOAL: Partner with local businesses, agencies, and organizations to facilitate and support the development and retention of businesses that diversify the economic base and meet the EDD s needs. 5. Support coal-dependent communities in the District to identify and plan for EDA and other investments that assist with diversifying industry options for these areas. The Regional Director was made aware in late June 2017 of the new EDA Assistance to Coal Communities grant opportunity, offering $30 million to assist coal communities. This information was immediately dispatched to Apache, Coconino and Navajo Counties. These counties immediately began preparing their proposals, which were presented to the August 3, 2017 meeting of the EDC. The EDC unanimously approved for recommendation to Regional Council. Regional Council subsequently approved the applications as well; one application for technical assistance to perform an in-depth assessment of the local area and create a strategic plan for economic recovery for Navajo and Apache Counties, and a second application from Coconino County to support economic diversification planning in the Lake Powell region by addressing the need in Page for a City Center, and identifying re-employment opportunities for the employees of NGS and Peabody Coal Mine and others impacted by the NGS closure. The EDD appreciates the encouragement and assistance of the EDA Seattle Region during the short window of opportunity for the filing of these applications for review. Navajo County received preliminary approval and an invitation to submit their full application. Coconino County did Economic Update 13

15 not receive funding from this grant; however, their application is being re-directed to Economic Adjustment funding opportunities. 6. Create regional strategies to develop new base jobs and training for dislocated energy and coal workers in the District. There is a strong presence of workforce development activities across the NACOG District, which include federally funded training opportunities for dislocated energy and coal workers through the Workforce Innovation and Opportunities Act (WIOA). There are 3 active Local Workforce Development Areas (LWDA) in the District, and include the Coconino County Career Center, led by Director Carol Curtis (an EDC member), Navajo/Apache County Workforce Development Area, led by Director Paul Watson (also an EDC member), and the Yavapai County Local Workforce Development Area, led by NACOG Regional Director Teri Drew. These LWDA Directors report regularly on economic development activities as a result of workforce development activities through business attraction and retention and training opportunities available or being developed. Mr. Watson spearheaded an EDA Assistance to Coal Impacted Communities grant application on behalf of Navajo County to create a strategic plan for economic recovery post-coal industry closure. The study is expected to focus on: Determination of the type and magnitude of adverse impacts that changes in the local area s energy industries have had and will have on Navajo and Apache Counties Identification of industries compatible with the existing natural resources and/or developed infrastructure available in Navajo and Apache Counties and recommended strategies to effectively market the area to those industries Identification of gaps in infrastructure that will guide strategic planning and create a foundation for future funding investments and increase the area s viability to attract new industries that will provide high quality jobs Recommendation of Priority Actions and Next Steps to build a more resilient, diverse economy in Navajo and Apache Counties Navajo County will then partner with R.E.A.L. AZ Development Council and the Northeastern Arizona Local Workforce Development Board (LWDB) to develop a strategic plan for the multijurisdictional area that encompasses the unincorporated areas of Navajo and Apache Counties as well as the incorporated cities and towns within the region. The strategic plan will include action steps for economic recovery including: Implementation of a marketing plan aimed at attracting industries to the area that can feasibly replace the existing jobs and poverty, sales and other tax revenues that will be lost through the closures of NGS and Cholla Power Plant Development of a funding plan aimed at identifying and applying for the funding needed to build the infrastructure necessary for Navajo and Apache Counties to attract and sustain new industry Economic Update 14

16 Identification of career pathways for occupations in targeted industries that offer sustainable wage and career opportunities to guide the LWDB in developing provisions for additional education and skills attainment opportunities within those industries. In Coconino County, the Northern Arizona Regional Resilience (NARR) Revitalization for Local Success initiative will support economic diversification planning and re-employment opportunities by engaging the new strategic plan for the multi-jurisdictional area of the Lake Powell Region, establishing local entrepreneurial experts, connecting specialized apprentice programs, and identifying re-employment that targets the current skills of employees at NGS and Peabody Coal. The Scope of Work includes: Revitalize/Re-Energize: The initiative will build upon the strategic plans and studies already completed and focus on developing a City Center implementation plan for rural-revitalization in Page, Arizona. In partnership with the City of Page Strategic City Council Priorities, the plan will identify a primary location to accommodate a new permanent City Center, offering economic diversification to steer a course away from over-reliance on coal-related businesses. By targeting new business development, job creation and increased tourism opportunities, new economic arenas will emerge and thrive into a coal-free future while harnessing the strength, tenacity and cultural values of the region s residents. The intent of this plan will identify industries compatible with the existing natural resources and recommended strategies to effectively market the newly developed area to encourage those industries and new business into the area. Partnering with the Salt River Project, the initiative will support a Business Attraction video to effectively market the region to new industries. Re-Employment and Re-Tooling of the Local Workforce: The initiative will implement several avenues for re-employment of the local workforce. These opportunities will include specialized apprentice programs that incorporate the skills of the dislocated workforce and will partner with experts in business incubation to spur entrepreneurship and innovation in the Lake Powell region. A partnership with the Northern Arizona Center for Entrepreneurship and Technology will train local coaches/instructors to provide expertise and training for local entrepreneurs in business start-up. Additionally, specialized apprentice programs have been identified and will be established in targeted industries that offer sustainable wages and career opportunities for skilled employees of NGS and Peabody Coal, with particular focus on Veterans which are represented in large number in both the Navajo and the Hopi tribes. 7. Engage State Partners to identify other resources and opportunities that will assist with new base jobs and training for dislocated energy and coal workers in the District. Regional Director Teri Drew coordinated a meeting in early February 2018 between NACOG Local Workforce Development Area Directors, the Governor s Office of Economic Opportunity, the Department of Economic Security Employment Services, and the Workforce Arizona Council to identify resources and opportunities that assess base jobs. The group is coordinating efforts to develop Economic Update 15

17 a white paper to summarize the coal-community efforts to address layoff aversion due to the shutdown of the coal industry in the area. The effort of this meeting is to identify Workforce Innovation and Opportunities Act Rapid Response funding and/or Governor s discretionary dollars to implement strategies that reduce overall displacement of workers, families and homes while mitigating a lower economic impact to our Region. 8. Prioritize efforts to secure EDA POWER Grant funding that have the potential to implement Stage 2 Planning and Implementation strategies. In 2016, Coconino County applied for and received the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative. Their project, Northern Arizona Regional Resilience, included plans to build a training center located near Page, Arizona in an effort to provide alternative job training opportunities for displaced coal workers. In July 2017, Coconino County submitted a preapplication for the Assistance to Coal Communities Initiative, intending to supplement their POWER project with additional funding to increase business attraction and job creation, business expansion and the development of sustainable local business start-up expertise for entrepreneurs. The Coconino County application did not demonstrate the criteria of the ACC funding opportunity; however the potential for funding through Economic Adjustment is a feasible alternative to build on the POWER initiative in Coconino County. Coconino County secured 2 other grants to develop a strategic plan for the Lake Powell Region. While Navajo County did not participate in the POWER initiative, they did partner with R.E.A.L. AZ and Apache County to apply for ACC grant funding to engage the services of a consultant to perform an in-depth assessment of the local area and create a strategic plan for economic recovery. Navajo County received grant funding as a result of their application in the amount of $104, Support and encourage EDA projects that demonstrate job growth, technology centers and industrial park development. The NACOG EDD annually develops a list of Goals and Priorities, a collaborative effort to prioritize projects throughout the District that increases capital availability, physical infrastructure, sustainable ecological resources, business retention and expansion, attraction of basic sector industry, transportation, tourism, human resources and social environment, basic community services and amenities, and technical assistance. Several of these projects are being actively discussed and pursued by the assessed communities of the District, including Technology Incubators, Business Assistance Centers, and Feasibility Studies for business and industrial park development. Applications that were submitted from the NACOG EDC Communities included: City of Cottonwood Old Town Business Park Economic Update 16

18 Navajo County ACC Feasibility Study Coconino County ACC NARR Revitalization for Local Success, projecting 250 jobs created (not funded, but encouraged to reapply for other funding sources) FOCUS AREA #2: Explore and Expand Energy Resources The EDD is well positioned to take advantage of developing emerging energy businesses to meet the Southwest s energy demand. NACOG EDC member Councilwoman Lora Lee Nye, regularly reports the activities of an organization she chairs in Yavapai County, the Upper Verde River Watershed Protection Coalition (UVRWPC). As a result of forestry thinning efforts in the dense pinon pine population, UVRWPC has been researching marketable uses for the inexpensive yet abundant small diameter wood by-product. Uses for the material include compressed biofuel, construction wood fiber products, pet and farm animal bedding, even essential oils. Other uses include the building of silt dams to assist in the protection of the watershed. NACOG Regional Director Teri Drew participates on this committee. The EDC is supportive of and encourages continued research in this vital sector. GOAL: Actively support the expansion and retention of the renewable, sustainable, and efficient energy industry within Northern Arizona Apache, Coconino, Navajo and Yavapai Counties. 10. Support efforts to promote other alternative energy generation and encourage research and development for alternative uses of the region s coal supply. Home grown coal production has sustained energy production through NGS and Cholla Power Plant for many years, as well as provided bread and butter for the people of the Navajo Nation and the Hopi Tribe, not to mention the economic boon it is to the Northern Arizona counties and communities, as well as the State; being self-reliant by using our own coal and our own power plants in unison with our Native American communities to provide for our state s young economy. With the eminent closure of NGS and the coal mine due to plans to shift to natural gas, wind and solar energy sources, the abandonment of the use of coal as an energy source will be devastating to the Navajo Nation, as well as the Hopi Tribe. In letters sent to the Arizona representatives in the U.S. Congress in January 2017, the Navajo Nation reports that nearly 3,000 Navajo Nation jobs are in jeopardy if NGS closes, including 450 from NGS itself, and 325 from the Kayenta Mine. The Hopi Tribe also wrote that the Hopi unemployment rate is in excess of 60%, and that the revenues generated from operation of NGS and the Kayenta Mine account for over 85% of the Hopi Tribe s general fund budget. 9 Much discussion regarding alternative use for the region s abundant coal supply has been ongoing, with clean coal technology a Priority 1 goal across Northern Arizona. Also being discussed is the use of 9 From a letter dated June 16, 2017 from Arizona Corporation Commissioner Andy Tobin to the Honorable Ryan Zinke, Secretary of the Interior, Washington DC Economic Update 17

19 forestry biomass product, compressed and burned as an alternative to more expensive fuel sources. The Upper Verde River Watershed Protection Coalition has been spearheading studies of the uses of small-diameter forestry bi-product, including biofuel. This is being tested successfully at a Yavapai County cement manufacturing plant. The use of biomass as a renewable energy source by-product of forestry restoration initiatives is gaining attention on a statewide level as well. FOCUS AREA #3: Align Workforce and Economic Development Priorities The EDD has recognized the importance of strong ties between workforce education and economic development efforts. The EDD needs a labor force with the talents and skills required by firms in the targeted industry sectors. GOAL: Support efforts across the EDD dedicated to expanding workforce readiness and business training and continue regional cooperation and planning with Northern Arizona Local Workforce Innovation and Opportunities Act (WIOA) areas. 11. The EDD will continue to support collaboration with local workforce investment areas and higher education institution partners to identify and expand training options that meet the needs of diverse populations in distressed areas of the District. The NACOG EDC is fortunate to have representation from the 3 state-designated Local Workforce Development Areas, as well as Northern Arizona University. The District is well positioned to offer extensive job training and apprenticeship opportunities in Navajo/Apache, Coconino and Yavapai Counties. Specifically, a new training center is being opened in Coconino County near Page, Arizona to address the need for alternative career paths for displaced coal industry workers. Projects are being developed to market the Region to attract and encourage businesses to consider locating or relocating here, to enhance job availability for a displaced skilled workforce. A February 2018 meeting is scheduled between the Governor s Office of Economic Opportunity and the Local Workforce Areas of the NACOG District to discuss training and funding opportunities for our displaced coal workers. Northern Arizona University (NAU) has an extensive hospitality and tourism department at their Flagstaff location in Coconino County. In Yavapai County, NAU has a partner extension site located in Prescott Valley as well. FOCUS AREA #4: Promote Natural Resource Assets as an Economic Driver Protecting the natural resources is not only important to the residents and visitors to the region, but it also makes good business sense. Economic Update 18

20 GOAL: Develop a robust forest products industry by seeking out ways to utilize the abundant forest by-product (biomass) as a renewable energy source and as an inexpensive ingredient for wood-based products. 12. Support new markets and technologies that can be developed to utilize small-diameter forest waste. NACOG EDC member Councilwoman Lora Lee Nye, regularly reports the activities of an organization she chairs in Yavapai County, the Upper Verde River Watershed Protection Coalition (UVRWPC). As a result of forestry thinning efforts in the dense pinon pine population, UVRWPC has been researching marketable uses for the inexpensive yet abundant small diameter wood by-product. Uses for the material include compressed biofuel, construction wood fiber products, pet and farm animal bedding, even essential oils. Other uses include the building of silt dams to assist in the protection of the watershed. The EDC is supportive of and encourages continued research in this vital sector. FOCUS AREA #5: Develop Economic Foundations and Infrastructure Economic foundations and infrastructure are important to assist business development and expansion critical to creating resilience to local economies. GOAL: Partner in the development of the Region s economic foundations and physical infrastructure needed to support economic development. 13. Provide technical assistance to Apache and Navajo Counties to identify creative strategies for EDA match requirements that support EDA funding to these distressed areas. NACOG Regional Director Teri Drew, Executive Director Chris Fetzer, met last summer with leadership from REAL AZ, a local economic development organization based in Navajo and Apache Counties, as well as County elected officials, EDC Executive Committee members, city planners, a congressional agency official and utility and ADOT representatives to discuss short and long-term economic adjustment planning for Navajo and Apache County as it relates to the closure of the Cholla Power Plant in Navajo County. Discussions revolved around evaluating the use of the existing infrastructure at the plant, which included significant water and natural gas usage. Other discussion included potential job replacement in the agriculture sector, transportation and alternative energy, and marketing available sites for industry growth to create more jobs for the now available tenured job pool. As a result of this meeting, the EDA ACC application for Navajo County was submitted and approved for an in-depth assessment of the area to create a strategic plan for economic recovery. Ongoing discussions will continue with this consortium. Navajo County received a grant in the amount of $104,265. Economic Update 19

21 In Yavapai County, the City of Cottonwood is in the process of developing the Old Town District for business attraction and expansion, and to enhance tourism to the area which had previously been largely vacated due to the diversion of traffic away from the area with a new bypass from the interstate highway. New hotels and restaurants are being built, along with wine industry-related businesses. 14. Encourage public and private partnerships and investments for broadband and future communications infrastructure in the EDD. The NACOG EDC was honored with a special presentation on August 3, 2017 by Arizona Corporation Commissioner Andy Tobin regarding the Arizona for Broadband Education Initiative. Over $100 million is available through the expiring E-Rate; a federal program that provides discounts to schools and libraries for affordable telecommunications and internet access. This money will be available by utilizing matching funds from the Arizona Universal Service Fund (an excise tax that has been billed on cell phone service for approximately 30 years). Commissioner Tobin encouraged members of the EDC to reach out to their school districts to take advantage of this opportunity to put the infrastructure in place in order to be able to expand broadband availability for schools and libraries. Yavapai County has already signed up 67 schools to take advantage of this funding opportunity, which will bring the cost down to $2.84 per megabyte, making internet available to remote areas. The deadline for schools and libraries to identify projects is December Regional Director Teri Drew encouraged the EDC to partner with coalitions at the local level to see how this unusual opportunity can make an economic impact locally and across the Region. We are working now to have a more in-depth conversation with the Commissioner to better define how we will collaborate with school districts to expand broadband opportunities in the District. FOCUS AREA #6: Focus on fire relief opportunities and funding The EDD is prone to wildfires. The District will continue to support fire mitigation efforts and, as needed, identify and encourage fire relief assistance. GOAL: Partner with Forest initiatives that support healthy forest restoration. At the August 3, 2017 meeting of the NACOG EDC, Arizona Corporation Commissioner Boyd Dunn brought a presentation on the recent opening of a docket for the study of forestry and how to correct and prevent issues posed by wildfires. Resulting impacts to these wildfires include reservoir capacity loss, damage to infrastructure and water quality degradation. The purpose of this study is to look at the opportunity of using the biomass as a source of energy and as a means to be able to clear our forests, partnering with state and federal entities, in a matter of a 20- year cycle. Utilizing biomass as a renewable energy source may encourage forest product industry to locate nearby and other industry to consider the use of biofuel. Economic Update 20

22 The District experienced devastating wildfires this year, affecting residential and business districts. Regional Director Teri Drew made the communities affected by the Goodwin fire in Yavapai County aware that, should anyone find themselves displaced from their employment due to fire loss, funds for re-employment training and job placement were available through WIOA. The District has continuing forestry thinning initiatives in place through the Four Forest Restoration Initiative (4FRI) and White Mountain Stewardship in Navajo and Apache County, as well as throughout the 5 National Forests located within the NACOG region. The UVRWPC conducts forestry maintenance and watershed restoration activities in Yavapai County. The NACOG Economic Development Council is to be complimented for their commitment and dedication in implementing our Comprehensive Economic Development Strategy for The Council has a strong membership of well-qualified, diverse and committed members representing our Economic Development District. Economic Update 21