Davidson, North Carolina Economic Study Group. Executive Summary Sept. 22 nd, 2009
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1 Davidson, North Carolina Economic Study Group Executive Summary Sept. 22 nd, 2009
2 What is Economic Development? Economic development represents the creation of wealth, primarily through the attraction of Investment. Why does it matter? Economic Development and its concomitant wealth creation provide the financial resources and tax base that make community development possible. You can t have one without the other. Robert W. Shively, CDcD, Author, Economic Development for Small Communities
3 Key Drivers: Economic Development for Davidson
4 Davidson So Who are we? Sampling of SWOT Analysis tool results executed by Economic Dev. Team. Strengths Weaknesses Insert photo Opportunities Threats
5 Vision Statement To develop an Economically Balanced Growth Model that supports and sustains Davidson as a vibrant and growing Small College Town. Core values influencing Davidson s growth: Diversity Green Spaces Sustainable environment Quality of Life Education and culture Density Life/Work/Retirement options Pedestrian traffic Community Events Mobility Insert Photo
6 Goals Dot Exercise Results (Insert date) Associated Short Term Recommendations Develop holistic approach: Develop Metrics Davidson Concord Road & Hwy 73 North of 115 Exit 30: Better integrate with Downtown events and advertising Fund Transportation between Districts Down Town: Marketing Campaign to support Branding Effort under development by the town. Arts District: Encourage Additional growth in this district. Encourage infill development to strengthen connection * (#) indicates the number of individuals who identified this criteria within the Top 3 (Verify)
7 Small Business Growth
8 Small Biz vs. Large Biz The SBA defines small business as an independent business having fewer than 100 employees. How important are small businesses to the U.S. economy? Employ just over half of all private sector employees. Have generated 64 percent of net new jobs over the past 15 years. Hire 40 percent of high tech workers (such as scientists, engineers & computer programmers). Are 52% home-based and 2 percent franchises. Davidson currently has 119,116 SF w/ 56.5% Vacant SBA Defines Stage 3 4 as having more than 100 employees. Challenges: Right now, Broker XYZ does not talk about Davidson. Opportunities exist: Beaty St, Davidson East & others. Banks are not loaning money Developers are gun shy Planning process can hold up the development Need a clearly defined fast track approval process Clearly defined improvement targets Approved Master Plans: 1.18MM SF Small Area Plans: 3.74MM SF (under scenario 1) Metrics for What Makes a Great Place are located in the book.
9 Small Entrepreneurs Building success one business at a time Goal: Encourage and foster growth of small business: Start ups Small Mature companies Obstacles: Access to inventory information Local Government Permit/ Approval Process Available Community Resources Funding How? Develop a resource package designed for Business including a list of available inventory and process to acquire. Explore alternative incentives, such as Public Private partnerships with independently owned retailers. Identify sectors or special interest groups ready to launch: Writers, Agro Business, Retirees. Share Success Stories Next Steps: 1. Find entrepreneurs ready to start up. 2. Assist with space, sources of funding & supporting speed to market 3. Market Davidson as the place for small business & entrepreneurs
10 Medium to Large Scale Business It s harder than it looks Questions to Address: Is Regionalism critical to our success? Is the Lake Norman EDC well equipped to do its job? Does Jerry Broadway have clear direction from Davidson regarding targets to pursue? Insert photos Do Politics get in the way? Are we nimble enough to strike while the iron is hot? What specific sectors do we want to market to? Carter Property on NC 115 north of town in S. Iredell Co.
11 Medium to Large Scale Business It s harder than it looks Goal: Create an environment that is ready for large scale development in the future. Opportunities: Town owned Betty Street Insert photos Property 18 acres Davidson East Duke Energy Site Readiness Program South Iredell County NC 115 Mayes Property at Davidson-Concord Rd (NC 73) and Sam Furr Rd Mayes Property NC 73
12 Suggested Next Steps Economic Development Study Group View Economic Development as impacting the Comprehensive Plan. Increase understanding of the collective study groups visions to identify gaps, misalignments and support for recommendations. Create an Economic Development Strategic Plan (perhaps as part of a LKN regional effort?) to guide the Comprehensive Plan. This should include measurements of success Determine who will fund and lead a sustained Economic Development Strategy for Davidson and the region.
13 Appendix Thank You! Insert Photo Questions?
14 SWOT Analysis Strengths Small town character and excellent quality of life Davidson College presence and cultural opportunities Close proximity to Charlotte, international airport Lowe s and Ingersoll Rand campuses nearby Level of education of residents and local professionals Educational resources at both primary and secondary levels. (Davidson College, local school systems) Stable residential neighborhoods economic growth opportunity Resources such as Kathleen Rose, NC Biotech Center, Lake Normal Regional ED Corp., LKN Chamber, LIST OTHERS Retirement Communities (The Pines) Available small office space and shell space (Cotton Mill, South Main, Exit 30) Opportunities Commuter rail (planned) MI Connection Amenities (natural areas, lake, greenways, etc) Close proximity to rural character
15 SWOT Analysis Opportunities, Cont. More local residents work from home, need local services to support business Destination/tourism development in Town Center Nearby employment centers (such as Lowe s and Ingersoll) Availability of land NC Research Campus (Biotech Center) Retirees Lake Norman, Lake Davidson Exit 30 Childress Klein development Light industrial and office commercial can preserve more open space than residential or retail uses Additional connectivity through new commercial development Regional sports events and tournaments
16 SWOT Analysis Weaknesses Parking limitations in downtown Strict ordinances (should we allow single use zoning, single story bldgs in areas?) Lengthy approval process High taxes and property values Lack of connection between Exit 30 and Downtown Limited shovel ready sites for economic development NC 73 and I 77 congestion and management No lake access No Conference Center, meeting rooms, auditorium space available.
17 SWOT Analysis Threats Need conference space Exit 31 development Other competitive areas along 77 and 485 (Ballentyne, for example) Surrounding communities, Huntersville, Cornelius, Mooresville For capital intensive businesses, Exit 30 is sometimes not attractive (possible reco need to educate brokers on the opportunities available in Davidson due to the mixed use layout and sustainability) Tax rates in Iredell County and South Carolina Available, move in properties in surrounding towns due to economic downturn Long Economic Downturn Pressure to compromise principles to stimulate economic development. Banks unwilling to lend funds for Spec Development
18 Davidson s Commercial Districts Short Term Recommendations Downtown Reco: Fund additional Retail advertising campaign to emphasize Shop Davidson Exit 30 Reco: Better integrate with Downtown with events and advertising Reco: Fund transportation between districts Arts District Reco: Fund growth in this district critical to attracting consumers into Davidson Everything else Davidson Concord Road & Hwy 73 North of 115
19 Downtown, Exit 30 Retail Marketing program for buy locally. Example red paw signs as you leave town did you buy it here? Do we advertise and market our plans better do we give more funds to Downtown Davidson, what else can we do. Discussion for Study Group What is already being done add this to strengths. Merchant Group in Downtown Davidson. Support on going initiatives.
20 Recommendations Economic Development Currently, Davidson is not viewed as a business friendly environment. Add reasons why: Put up Kathleen s results. Indifferent slide. (We like this slide start with this slide and make them take the test first. ) In order to change this, we will need to have 1 5 year plan and a 5 10 year plan. Within each of these plans, we will need to address the two major subgroups of business: Small entrepreneurs, and medium to large size business.
21 Another Small Business Success Idea Framingham, MA Model Dr. Bill Williams we have not been able to meet with him yet. He feels that a viable goal for Davidson would be to volunteer itself as a large scale laboratory where scientists can observe residents following healthy living principles and record the effects. He spoke at length about the idea of Davidson tapping into the bio tech/medical research initiatives He thinks groups like the Robert Woods Johnson Foundation and/or the National Institutes of Health would be all over such an opportunity. By healthy living, I mean active living (walking, biking to work and school), cultivating and consuming local foods, regular screening, etc. As a suggestion, our comp plan could emphasize public health in a significant manner. A town like Davidson is the right scale (population, size) for such a large scale study, and I think there would be a great deal of willingness by residents especially if there were some added benefits (free screening, grants for additional sidewalks/greenways, etc). Once this grant based pilot program was set up, Davidson could very well continue as a laboratory for a number of studies warranting the permanent establishment of research jobs and facilities. It would take some time (10+ years) for the jobs to permanently land here. But it might take that long for any jobs to permanently land on NC 73. The initial problem is staffing for the initiative. The Town would need at least one person in place on a permanent, full time basis to organize and manage if the Town government was in charge of the project :
22 Targeted Sectors Healthcare & Life Sciences Over 90 Medical Device Companies Home of the North Carolina Research Campus Defense & Security General Dynamics, Goodrich, BAE Systems, Curtis Wright, Over 900 Department of Defense suppliers Energy & Environment Largest concentration of nuclear engineering talent in the U.S. Growing energy efficiency / alternative energy sectors Finance & Insurance 2 nd largest banking center in the United States Over 60,000 employed in finance and insurance industry Motorsports Largest concentration of motorsports talent in the US Transferable skills to other industries (defense)
23 CRP Activities Targeted Sectors Market Summary Report Overview of markets and industries, key players, associations, companies, etc. Database Development Company lists to send regular drip marketing campaign Collateral Development Short (2 page) overviews to carry with CRP and ally teams Web Portal Dynamic website area that will provide value for both internal and external viewership Quarterly E Blasts Regular update to database to create awareness and visibility National / International Business Development Travel Visit industry cluster geographic centers, association meetings, etc. Hosting of Decision Makers Host cluster decision makers and/or consultants to view assets
24 Entrepreneurial Growth Building success one business at a time Philosophy build a series of small success stories. Find a 2 3 entrepreneurs that want to do a start up. Provide space, loans, research facilities if needed. Plan for their success & market to others that Davidson is the place to come for small entrepreneurs (partner with the college, with nascar, with UNCC do a competition for funding with all seniors or grad student. Town provide the space & a years funding. Defense, Health, Energy, Motorsports. Use space from Kathleen, etc. Do a public private partnership to develop flex shell space, minimally finished Do a public private partnership to develop shared lab space Is there a tax deduction that we can offer to a business to donate space they are not using now anyway maybe a 50% discount? Etc. The Town will need to fund a coordinator, or build a private public partnership to coordinate
25 Small Business Opportunities Supporting small Independently operated retail establishments. Continue to Recruit Explore alternative incentives, such as Public Private partnerships with independently owned retailers. Incubation center for writers (shine a light what we already have, and develop a center for this). (See Oregon info) Develop Mentor program for Incubators from our Retiree base. Give them a place to go and to donate space (SCORE program work with SBA) Support Agro business. What do they need from Davidson? Space? Research entrepreneurial opportunities through Christy Shi.
26 Medium to Large Scale Business Opportunities Next Steps Immediate Goal for development: What sectors do we want to market to. Jerry Broadway does not currently have a direction from Davidson in regards to what he should persue. Hire a consultant to put together a specific economic development plan. Target sectors of Defense, Health & research, Energy. Market ourselves to CRP. If it is a purely financial decisions medium to large business will go elsewhere, such as Lincoln county. We need to decide what sectors to market to, who will see the benefits of Davidson (such as highly educated population base) and then give Jerry direction.
27 Medium to Large Scale Business Opportunities Regionalism is critical it is what is working in marketing. That means funding the Lake Norman Regional EDC Traditionally, the towns have an economic development officer that would handle the development. We either need this or LNR EDC needs another staff person to coordinate the projects that are on the table right now. Currently, fund have been cut by all 3 towns to the EDC. (10 15%). Private sector funding is off 30%. Currently they are very underfunded. (What does the Board want to do what resources do we already have and what additional resources do we want to put against ED). Ideally, the towns would go back to funding formula. Conduct capital campaign to private sector.
28 Medium to Large Size Development Opportunities Example of project already on the list, coordinated with Lake Norman Regional EDC: Frank Jacovis site submit for Duke Energy Site Readiness Program. Will be submitted as if there is a project. Will do land planning, recommended parcilization. Will receive full report, pro & con and remedies for this. Afterwards, this site will be read for project implementation. Our cost is only $1000 Duke will support the rest. Then we can qualify for an additional $5000 for site readiness. Jerry will send more info. Recent Apple project (in Catawba) was a Duke Site Readiness project. Gets consultants in, gets excitement about the site.
29 Medium to Large Size Development Opportunities Right now, Broker XYZ does not talk about Davidson. Reasons no product available, not an easy sale. Companies want to see spec building, or previously occupied buildings. And an infrastructure around it. Goals for Davidson Banks are not loaning money right nows, and developers are gunshy so even if we were in a perfect environment in Davidson, we could not set a goal for the next 2 5 years. But, we can create an environment for this so that we are ready in a few years. However, there are places that when the private sector did not step up, the public sector has. The Town Board could invest in this process. Here are examples of towns that have successfully implemented this strategy. Newport News VA set aside funds for Economic development. Used funds to build shell buildings. They did 7 8 shells over a period of 10 years. They built one at a time, and each time, marketed & found company to occupy and purchase building. Preference to sell & then take funds & immediately build another. Already had site plans and building plans ready each time. Willing to spend funds on design & construction to have product available. Canon (copy machines) came in and then brought other suppliers with them. At least half of shell buildings were sold to Japanese companies. For Davidson, we could explore what needs Lowes companies might have for location in Davidson. We can explore international companies that may want to locate here. This will have to be done in conjunction with The Charlotte Chamber, Charlotte Regional Partnership & NC Dept of Commerce. They all market internationally anyway (INSERT TARGET SECTORS slide) Fund a study to see what other buildings are on the market & where our niche is Issue perception of private vs public sector. But maybe a public private partnership. Would need a study to determine current level of inventory, and at what level we would want to build. Market analysis. # levels RFP for Public Public Private Partnership Public project
30 Medium to Large Scale Business Opportunities Recommendation: Property on Beaty street Davidson owns the property. About acres. Half is developable (North Griffeth Street right across from Ingersoll Rand). What should be built there? Ideas: Conference Center Public Private Partnership to Build a Green Office Park/Research Lab. Recommendation: Planning process can hold up the development Need to have a more clearly defined fast track approval process. What will make them able to get a fast track (for example, what do we want to see in terms of green areas, who will hold their hand going through it). This is what we hear about staff and board. Set criteria for fast track projects (only fast track if econ dev & creates local jobs). This is big issue for Davidson but it is larger than this it also involves issues at the county level (they do have a fast track review process now).
31 Public Private Partnerships Who can we affiliate with? Davidson College who is graduating and has an idea (have a contest for a graduating senior), DC graduates/faculty/staff that might want to develop an idea UNC CH (Kathleen head of engineering) Kannapolis Research Park NC BioTech Center who is applying for grants, can we offer them space? Lowes, Ingersoll Rand Visit and replicate successful incubators (Kathleen visiting Sergio Bento) These can be University Driven, Segment Driven, or Internationally Driven. Insert Photos Example: south Korea developed an incubator in N. VA for Korean companies that wanted to locate there. Jerry could coordinate folks from China, so that we could develop incubator project here with China, Japan, etc. Help them with inexpensive space, etc. there for a few years then need to go out & establish themselves.
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