EDAWN Luncheon & Economic Update

Size: px

Start display at page:

Download "EDAWN Luncheon & Economic Update"

Damon Wilkinson
6 years ago
Views:

1 WELCOME EDAWN Luncheon & Economic Update January 14, 2016

2 Leigh Goddard McDonald Carano Wilson LLP EDAWN Board Chair

3 2015 New Major Investors Platinum: Presidential Gold:

4 2015 New Gold Investors AugustineIdeas Bank of America Charter Business Digiprint FLF Films Forever Young ITS Logistics Lewis Roca Rothgerber Network Services Solutions Parsons Behle & Latimer Plumas Bank Sala Family Dentistry U.S. Bank

5 EDAWN Non-Profit Board Mercedes De La Garza, Mercedes De La Garza Architect Studio Tom Fitzgerald, Energy Circuit, Inc. Suzy Klass, NAI Alliance Tony Manfredi, KNPB Abbi Whitaker, The Abbi Agency

6 Regional Public / Private Partners City of Reno UNR State Offices City of Sparks TMCC Nevada JobConnect City of Fernley DRI Nevadaworks Washoe County The Chamber NNDA Storey County WNDD NV Energy Washoe County School District NCET Reno-Tahoe Airport Authority GOED RTC Renegades DETR RSCVA Many Others!

7 Mike Kazmierski President & CEO EDAWN s Economic Update January 14,

8 Thanks! Steve Anderson RBC Wealth Management EDAWN Immediate Past Chair

9 EDAWN Coin! This Coin Is Presented In Recognition Of Exceptional Leadership, Engagement, And / Or Cooperation In Support Of Reno-Sparks Regional Economic Development Efforts!

10 Announcement! Christine Putman, Director of Operations

11 New Marketing Video

12 2015 Was A Great Year! Tesla Starts Battery Production Switch Data Center And Super Loop 33 Companies Assisted 3,000 new Jobs UNR Success And Growth Air Service Improvements Positive National Media Tremendous Growth Of Our Entrepreneurs Increase In Regional Fiber Connectivity Renewed Emphasis On Downtown Revitalization

13 Updated Economic Development Stool Workforce Development Attraction Retention / Expansion Community Development Entrepreneurial / Startup Growth 13

14 14 So How Is EDAWN Doing At Quality Job Attraction?

15 Unemployment Rate Improving- But! 14 Significant Reduction Since % to 5.6% Unemployed From 30,731 To Now Just 12, Full Employment 4.5% 15

16 Prospect Visits Per Month Ave Ave Ave Ave Ave

17 2015 EDAWN New Companies Assisted Industry Company Jobs From HQ Service Blackridge Technology 30 CA X Manufacturing Immy, Inc. 30 CA Manufacturing Seeco Switch 10 NC Data Center Switch 400 NV Service Koch Business Solutions 50 KS Manufacturing Planetary Pinball 10 CA X Service Grand Rounds 200 CA Manufacturing Cascade Designs 100 WA Manufacturing Industrial Lighting 60 FL Distribution Meri Meri 10 CA Distribution Etailer Inc. 15 WI Service Franzen-Hill 50 CA

18 2015 EDAWN New Companies Assisted Industry Company Jobs From HQ Distribution So. Prosthetic Supply 10 GA Manufacturing Indy Hangar 20 IN Manufacturing Angie s Artisan Treats 160 MN Manufacturing Aqua Metals 70 CA Service Teleperformance 500 UT Manufacturing BI Nutraceuticals 120 CA Manufacturing Deceuninck 80 OH Distribution Quality Bicycle Products 50 MN Manufacturing AZZ Galvanizing 60 TX Data Center ebay 52 CA Total 2,087 2

19 2015 Assisted Expansion Projects Industry Company Jobs Location Manufacturing Now Foods 47 Sparks Distribution Undisclosed 52 TRI Manufacturing Fulcrum Sierra Biofuels 32 TRI Aviation Dassault Falcon 3 Reno Aviation Tactical Air Support Inc. 10 Reno TOTAL 144

20 Pending Announcements Industry Job Count HQ Confidence Relocation State Service 300 Very Likely NY Manufacturing 100 Very Likely TAIWAN Distribution 500 Very Likely NJ Data Center 50 Very Likely TX Manufacturing 50 X Very Likely CA Distribution 150 Very Likely IN Distribution 5 Very Likely CA Total 1,155 1

21 Hot Prospects! Industry Job Count HQ Confidence Relocation State Service 500 Finalist CA Manufacturing 150 Finalist DE Manufacturing 300 Finalist CA Service 200 Finalist CA Manufacturing 2,800 Finalist PA / VA Manufacturing 1,000 Finalist IL Manufacturing 200 Finalist IN Service 100 X Finalist CA Data Center 80 Finalist TX Service 100 Finalist WI E-Commerce 800 Finalist NJ Manufacturing 292 Finalist OH Manufacturing 1,000 Finalist TN Total 7,522 1

22 EDAWN Assisted New Jobs (5 Year Numbers Based On Company Estimate) 4,000 3,600 3,200 2,800 2,400 2,000 1,600 1, Annual 2,231 (Not Including Tesla) 2008/11 Average 840 Pending * Estimate Based On One Year Numbers 22

23 The Largest Deal In The U.S. In Changes Our Brand Overnight! Tesla: Wow! More Than Jobs: Puts Us on The Radar For: Manufacturing, Business, Entrepreneurs, Creative Class, Research & Development, Investors..

24 Tesla Update! Jens Peter Clausen New VP For The Giga Factory Jens And Family Live In Reno SVP With LEGO Tesla Is About 2 Months Ahead Of Schedule Shipped Out Power Packs And Power Walls Tesla Has Over 200 People Working At Facility Now On Track To Hire 6,500 Tesla/Panasonic By 2020 Plan To Produce The First Cell Battery Early M of the 10M sq. ft. Building Operational in 2016

25 Switch, The Developer Of SUPERNAP Data Centers Is Expanding To Northern Nevada Is Building A 6.4 Million Sq-ft Data Center; Will Bring $3 B Of Investment and 400+ Jobs Switch's Development Of A Fiber Optic Network Loop Will Connect Reno, Las Vegas, Los Angeles And San Francisco SUPERLOOP Will Dramatically Increase The Speed Information Can Travel Among The Cities

26 Types Of Companies Relocated 2015 Service 23% Data Centers 9% Distribution 18% Manufacturing 50%

27 Updated Economic Development Stool Workforce Development Attraction Retention / Expansion Community Development Entrepreneurial / Startup Growth 27

28 Components to BR&E Program Connect Primary Companies With Resources Grow Jobs/Revenue/Visibility Fix Problems/Eliminate Roadblocks Retain/Recognize Support Industry Clusters Drive Business To Business Connections 28

29 Retention Results / Initiatives Company Visits =195 Growing Future Growth 85% Growing Flat Declining Five Assisted Expansions = 144 Jobs 60 Business To Business Connections Made 2 Industry Sector Councils 50 Co s Existing Industry Awards 14 Critical Issues Addressed 29

30 Major Concerns Availability Of Workforce, Workforce, Workforce! Concerns About Increase In Regulations And More Aggressive Enforcement Increasing Licensing And Permitting Fees Public Transportation Concerns, (TRIC) Background Checks At Peak Hiring Times Process Of Setting Up New Business In Nevada Workforce Development Silos Career Readiness For Employment 30

31 Workforce Consortium Partners Career College of Northern Nevada Community Services Agency Dream It Do It Education Alliance of Washoe County GOED JOIN, Inc NVIE TMCC Nevada Builders Alliance Sierra Nevada Job Corps Nevadaworks Nevada Dept. of Education Multiple Veterans Agencies Western Governor s University No. Nevada Literacy Council National Skills Institute UNR WCSD & CTE DETR WNC 31

32 Updated Economic Development Stool Workforce Development Attraction Retention / Expansion Community Development Entrepreneurial / Startup Growth 32

33 Entrepreneurial Ecosystem To Support Entrepreneurs Along Every Stage Of Their Journey Core Values Be Entrepreneurs 1st Raise The Bar Be Of Service Make An Impact Stewards Of Culture CHAMPION Recognized as the leading organization in your field SCALE-UP Seeking the maximum success of your core mission STARTUP Seeking a scalable business model The Entrepreneurs Journey LEARN CREATE Executing an idea (alone or with others) Seeking knowledge and other like-minded people INSPIRE Having a realization or awakening

34 Entrepreneurial Growth & Jobs Major Growth In The Last Quarter 40 New Entrepreneurial Jobs 19 Newly Created Startups 15 New Hires 46 Total Employees 7 New Hires 14 Total Employees $5M Funding Raised 2015 & $1.25M this month 6 New Hires 42 Total Employees Closing Series A Funding 34

35 Entrepreneurial Development Success! + Summit Venture Mentoring Service & Reno Angels Partner In To Help Create Deal Flow! Reno - Top 10 Emerging Ski Town Featured in Why I Love My City 35

37 Biggest Little Startup Community Reno The Place For Entrepreneurs With A Life! 37

38 Explosive Growth Is Coming! 260, , , , , , , , , , ,000 Tesla Job Growth EDAWN Job Growth Historic Employment Rapid Growth 2.2% 4.5% Growth Historic Growth 1.2% / Year 38

39 EPIC Job Forecast Scenarios (Five Years: ) Rounded Scenario Job Growth Population A 56,600 46,200 B1 52,400 42,400 B2 52,400 64,700 C 47,400 37,800 EDAWN Projected Most Likely Scenario

40 EPIC Versus Actual 52,400 Jobs In 5 Years

41 EPIC Versus Actual Population In 5 Years 42,400 or 64,700

42 Are We Ready For This EPIC Growth? 42

43 Concerns Challenges Or Crises 1. Water Concern 2. Housing Concern 3. Flood Control Concern 4. Brand or Image Concern 5. Government Staffing Concern 6. College Of Engineering Concern 7. Downtown Revitalization Concern Manageable Concerns? 8. Transportation Infrastructure Concern

44 Challenges To The New Reno / Sparks 1. Affordable Housing 2. Funding For Workforce Training 3. School Infrastructure Funding 4. Workforce / Talent Attraction The New Reno / Sparks

45 Challenge # 1 Affordable Housing Median Home Price Vs Affordability Median Home Price Home Prices Doubled in The Past 4 Years Declining Opportunity Housing Opportunity Index* *National Association of Home Builders

46 Median Family Income = $75,564 Qualifies For $313,000 to $369,000 Home Our Median Home Price Bank Qualified $369,000 HUD Qualified $313,000 Based on 20% down, 4% mortgage rate, housing costs estimated For Washoe County by the UNR Center for Regional Studies, housing costs 28% of income HUD, 33% for Banks

47 Rental Units May Be As Bad? Median Income For Rental Housing $36,317 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 3/2 Rental Average Rent 1/1 Rental HUD Housing 28% = $847 Johnson Perkins Griffin, LLC Apartment Survey 3 rd Qr Data Reno/Sparks Metro

48 Challenge # 2 Workforce Training The Primary State Agencies To Train Existing Workforce Are The Community Colleges We Have Significant Workforce Training Needs 50,000 New Jobs Projected In Next Few Years Many New Jobs In Advanced Manufacturing The Need Is Directly Linked To Incoming Jobs Not Included In Recent Education Funding

49 Value Of Community Colleges 74% Of Our Kids Not Getting Bachelor Degrees Of 100 Kids Only 26% Graduate From College 80% Of Advanced Manufacturing Jobs = 1-2 Years Of Technical Training And Pay $70,000 + Brookings Defines STEM Jobs As Technical Knowledge Not Requiring A Bachelor's Degree 74% College Grads (In 6 Yrs) 26% College But Not Graduating - 19% HS Grads Not Going To College 28% Not HS Grads 27%

50 Community College Link To Job Growth? (Just Operating Funds Capital Funding Has Gone From $12M In 2008 To $1 M a Year) $90 $85 $80 $75 $70 $65 $60 $55 $50 $ M Actual Operating Funds If Funding Was Increased with Job 3% Northern Nevada State Funding FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Huge Gap!

Challenge # 3 School Funding WCSD Is Years Behind In Infrastructure $273 M In New School Needs Now Maintenance And Renovations Alone = $25M / Yr Only $35 M

51 Challenge # 3 School Funding WCSD Is Years Behind In Infrastructure $273 M In New School Needs Now Maintenance And Renovations Alone = $25M / Yr Only $35 M Year Available To Bond In Through 2024 Clark County 42% Higher Property Tax.5534 Vs.3885 / $100 Assessed They Also Have: Real Estate Transfer & Lodging Washoe

52 The Recession Combined With The New Tax Cap Did Not Help! Actual Revenue Projected 4% Revenue w/no Tax Pre Tax Cap Revenue Growth Lost Over $600M % Property Tax Cap Law Limits Recovery

53 WCSD Capital Funding Crisis! 1, Maintenance & Renovations New Schools $273M Now 1E, 2M; 1.5HS New Schools $318M By E, 1M, 2 HS 7% Interest / Inflation The Gap $ M Current Bonding $35M / Yr

54 Our Schools Without Action! More Temporary Portable Classrooms Currently 228 and Many Over 30 Years Old Double Sessions!

55 Challenge # 4 Workforce Availability Facilitate The Execution Of A Community Workforce Attraction And Development Plan Connect: Companies To Community Resources & Talent Attract: Talent From Outside The Region - Determine/Project Workforce Demand - Develop Targeted Marketing Materials - Manage Attraction Campaign Train: Workforce To Meet Future Job Demand - K-20 Retain: Existing Workforce

56 Workforce / Talent Attraction Talent And Job Seekers / Entrepreneurs Continue To Enhance Community Image Promotion Of Community Assets Media Toolkits New Reno Get Their Attention Actively Recruit Kinds Of Jobs Available Sectors Of Growth Companies Hiring Attraction Campaign Community Rolodex Trailing Partners Integration Identify Job Opportunities Welcome & Connect

57 So What Can You Do To Help? 57

58 How Can You Help? 1. Promote The Region Send Video To 10 People! 2. Believe, Celebrate And Prepare For Growth Work To Address Concerns And Challenges 3. Adequately Fund School Infrastructure 4. Attract And Welcome Talent To The Region 5. Support Downtown Revitalization New Brand! 6. Engage And Support UNR It s Our University 7. Encourage, And Build Affordable Housing 58

59 Regional Public / Private Partners City of Reno UNR State Offices City of Sparks TMCC Nevada JobConnect City of Fernley DRI Nevadaworks Washoe County The Chamber NNDA Storey County WNDD NV Energy Washoe County School District NCET Reno-Tahoe Airport Authority GOED RTC Renegades DETR RSCVA Many Others! Special Thanks To Our Elected Officials Who Have Supported Our Economic Development Efforts! 59

60 Thanks To The EDAWN Board, Our Investors And The EDAWN Staff 60

City of Sparks Update Mike Kazmierski, President and CEO

City of Sparks Update Mike Kazmierski, President and CEO October 23, 2017 What Does EDAWN Do? An Effective Economic Development Program - Attracts - Retains / Expands -Grows Quality Jobs! 2 Updated Economic