Economic Development Strategic Plan
Transcription
Economic Development Strategic Plan
MARCH 2012 Economic Development Strategic Plan Prepared for the City of Waxahachie, Texas th 106 East 6 Street, Suite 550 | Austin, Texas 78701 | 512.343.9113 | www.tipstrategies.com Waxahachie, TX ACKNOWLEDGEMENTS TIP Strategies would like to thank the many individuals who participated in the development of this plan. We are particularly grateful to the business representatives who generously gave their time and input. Their knowledge and expertise contributed greatly to our understanding of Waxahachie and our recommendations. We would also like to thank the Waxahachie City Council as well Project Steering Committee for their critical guidance, support, and feedback. Waxahachie City Council TIP Project Team N. B. "Buck" Jordan, Mayor John Wray, Mayor Pro Tem Chuck Beatty Mark Singleton Kevin Strength Jon Roberts, Managing Director Alex Cooke, Project Director Project Steering Committee George M. (Mike) Ramsey, Chair Waxahachie Chamber of Commerce Tres Blankenbeckler Owner, Carlisle Chevrolet Cadillac Dr. Kermit Bridges President, SAGU Marvin E. (Mark) Singleton President/CEO, Citizens National Bank of Texas Steven F. Chapman Attorney Thomas J. Collins Superintendent of Waxahachie ISD Kevin Strength President, Pediatric Health Care Bobby Dyess Attorney Jay Fox President, Baylor Medical Center at Waxahachie Debra Wakeland, President/CEO Waxahachie Chamber of Commerce Jeff Frazier Chairman/CEO, Vintage Bank Paul Hernandez Area Manager, Oncor Electric Delivery Paul K. Stevens City Manager Bob Lynn CEO, M2Marketing Dr. Kenneth Martin President, Navarro College Waxahachie Michael Scott Assistant City Manager Leslie and John Majors Owners, Re/Max Realty Group Dr. Mackey Morgan Dentist Doug Barnes Director of Economic Development Dan E. Morton Senior VP, First State Bank Waxahachie Jim Pitts Attorney and State Representative District 10 Clyde Melick Director of Planning Ali Sharaf President/CEO, Victron Energy, Inc. Judge Carol Bush (Advisory Member) Ellis County Judge TIP Strategies, Inc. Theory Into Practice i Waxahachie, TX TABLE OF CONTENTS ACKNOWLEDGEMENTS ........................................................................................................................................................................................................................................................ I TABLE OF CONTENTS .......................................................................................................................................................................................................................................................... II INTRODUCTION ..................................................................................................................................................................................................................................................................... 3 1. HEALTHCARE & HIGHER EDUCATION..................................................................................................................................................................................................................... 8 2. LAND DEVELOPMENT .............................................................................................................................................................................................................................................. 17 3. ECONOMIC DEVELOPMENT CAPACITY & TOOLS ................................................................................................................................................................................................ 21 4. MARKETING & IMAGE .............................................................................................................................................................................................................................................. 27 5. DOWNTOWN REVITALIZATION ............................................................................................................................................................................................................................... 32 IMPLEMENTATION .............................................................................................................................................................................................................................................................. 37 PERFORMANCE MEASURES ............................................................................................................................................................................................................................................. 51 APPENDIX A: ECONOMIC ASSESSMENT ......................................................................................................................................................................................................................... 52 APPENDIX B: TARGET INDUSTRIES ................................................................................................................................................................................................................................. 81 APPENDIX C: CONSIDERATIONS FOR FUTURE BUSINESS AND INDUSTRIAL PARKS ............................................................................................................................................. 96 TIP Strategies, Inc. Theory Into Practice ii Waxahachie, TX INTRODUCTION On behalf of the Waxahachie Chamber of Commerce (WCC) Economic Development Committee, the City of Waxahachie engaged TIP Strategies to assist in developing an economic development strategic plan for the city. The following recommendations are the result of a nine-month process incorporating input and ideas from key stakeholders and organizations throughout the city. The plan is designed with the overall goal of positioning Waxahachie for long-term growth and prosperity. The Challenge TIP Strategies, Inc. 2003-2006 2007-2010 Transportation & warehousing Healthcare & social assistance Oil, gas, & mining Retail trade Finance & insurance Government (incl. public ed.) Property sales & leasing Restaurants, bars, & hotels Personal & other services Professional & technical services Administrative services Construction Agriculture, forestry, & fishing Wholesale trade Educational services (excl. public ed.) Arts, entertainment, & recreation Information & media 1,000 800 600 400 200 0 (200) (400) (600) Manufacturing (800) This does not mean Waxahachie must turn away from manufacturing employment and investment. Because of its location and transportation access, Waxahachie will still be attractive to manufacturers looking to expand or relocate facilities. However, Waxahachie lacks the shovel ready sites and buildings necessary to compete with other cities in the region for significant industrial prospects. Moreover, the city currently lacks the tools and resources Waxahachie defined as the sum of zip codes 75165, 75167, & 75168 (1,000) The loss of local manufacturing jobs has been absorbed by employment growth in other sectors, including transportation & warehousing, healthcare, and retail. Indeed, the expansion of Waxahachie’s retail sector has helped to generate additional tax revenue to the city. Retail jobs, however, tend to pay lower wages and don’t require higher educational attainment levels. Commuting data indicate many of those working in Waxahachie’s retail establishments arrive each day from other cities in the region. Conversely, a large number of the city’s higher skilled, higher earning professionals are leaving each day for jobs in Dallas and other parts of the Metroplex. Job growth by industry sector in Waxahachie, 2003-2010 INTRODUCTION The members of the Economic Development Committee requested from TIP a plan that offers an honest assessment of Waxahachie’s economic strengths and challenges. Many on the committee recognized a major challenge facing Waxahachie is the erosion of the city’s traditional manufacturing employment base. Indeed, about 800 net manufacturing jobs were lost in Waxahachie from 2003 to 2010. (See adjacent figure.) Moreover, these losses occurred both during the recession and prior to the economy’s near collapse, indicating a structural shift taking place in the city’s economy. SOURCE: EM SI Co mplete Emplo yment - 2nd Quarter 2011preliminary Theory Into Practice 3 Waxahachie, TX to manage a comprehensive economic development program, including marketing and recruitment, business retention and expansion, and downtown revitalization. The Response Overcoming these challenges will require a coordinated and dedicated response by the City of Waxahachie and its economic development partners. Fortunately, Waxahachie has a number of assets working in its favor. It has the potential for one of the most dynamic economies in the region. The community has, in fact, succeeded in growing its economy and population in recent years without a strategic plan to guide its efforts. However, Waxahachie now stands at a critical juncture. It is poised for new types of investment and a greater presence in the region. This plan offers a five-year roadmap to transforming Waxahachie’s economic base and securing its long-term future. Vision and Goals Waxahachie is an emerging destination for high-skill jobs and new investment in the Metroplex. This vision will be achieved by: Improving the city’s image on IH-35 Promoting economic diversification Becoming a destination for higher education and healthcare services Serving as an alternative to northern Metroplex cities for higher-level investment and jobs Preserving and enhancing the community’s authentic quality of place TIP Strategies, Inc. Theory Into Practice TIP Strategies, Inc. (TIP) is a privately held Austin-based business and economic development consulting firm committed to providing quality solutions for both public and private-sector clients. Established in 1995, the firm’s areas of practice include economic development consulting, strategic planning, site selection, economic impact analysis, regional economic development, target industry analysis, cluster analysis, technology audit, transit-oriented development, workforce analysis, feasibility studies, market analysis, and redevelopment analysis and planning. INTRODUCTION Economic development goals, strategies, and actions must be driven by a clear vision. While conceptually this makes sense, the more practical value of the vision is in directing resources for the express purpose of economic development. As a result, successful vision statements are bold but provide a clear direction and can be supported by goals and strategies. We believe that the following economic development vision for Waxahachie achieves those objectives and reflects the city’s real economic development potential. About TIP Strategies 106 E. 6th Street, Suite 550 Austin, Texas, 78701 512.343.9113 (voice) 512.343.9190 (fax) www.tipstrategies.com 4 Waxahachie, TX The economic development vision must be supported by focused goals that reinforce the concepts emphasized in the vision. The goals provide the structure for evaluating opportunities and prioritizing the investment of Waxahachie’s economic development resources. We believe that the following five goals will accomplish that: 1. Higher education and healthcare 2. Land development 3. Marketing and image 4. Downtown revitalization 5. Economic development capacity & tools INTRODUCTION TIP Strategies, Inc. Theory Into Practice 5 Waxahachie, TX SWOT TIP conducted an economic development SWOT analysis (strengths, weaknesses, opportunities, and threats) for Waxahachie, based on a review of economic, demographic, and workforce characteristics, interviews with local business and community leaders, as well as our experience working with communities across the country. The adjacent table captures the major findings from this analysis. The strategies in the economic development plan seek to build upon Waxahachie’s strengths, capitalize upon its opportunities, and address its weaknesses and threats. The more detailed Economic Assessment is contained in Appendix A. STRENGTHS Strong population growth Proximity to I-35 & DFW Transportation links (highway, rail, air) Regional retail center Water supply and infrastructure Charm of historic homes, districts, and architecture Growth of Navarro College & SAGU Quality of WISD Baylor Medical Center Affordable undeveloped land Convergence of education & healthcare Industrial/commercial land assembly I-35 and gateway beautification Expanded economic development efforts Downtown revitalization Regional marketing New destination retail WEAKNESSES South Dallas Identity Image portrayed from IH-35 Wage and income levels Lack of regional cooperation Limited incentive options/funding Leakage of high-wage professional service jobs Lack of existing industrial & commercial buildings TIP Strategies, Inc. INTRODUCTION OPPORTUNITIES THREATS Continued decline of manufacturing base Shifting center of gravity away from city’s center Spread of substandard housing stock New undesirable development along I-35 Decline of the downtown Theory Into Practice 6 Waxahachie, TX Framework The planning process involved extensive economic analysis, in-depth interviews and focus groups, and regular interaction with the project steering committee and the City of Waxahachie leadership and staff. The Strategic Plan that follows amplifies each goal and proposes strategies and actions to achieve these goals. An Implementation Matrix assigns responsibility and sets out a time frame for implementing the strategies. We also list Performance Metrics that should be tracked to record Waxahachie’s progress towards its economic goals. INTRODUCTION The appendices of this document contain a wealth of information to support the strategic recommendations of this plan. Appendix A is an Economic Assessment focused on understanding the county’s demographics, workforce, and economy in both a regional and national context. Appendix B contains profiles on a selected number of recommended target sectors for Waxahachie. Appendix C provides information on general site location requirements for different types of industrial and commercial development. The plan itself needs to be seen not as a static document, but as one that invites revisions and amendments as conditions change. In addition, economic development targets and initiatives in the DFW Metroplex may prompt further changes in Waxahachie’s recruitment strategy. For these reasons, TIP encourages the city and its economic development partners to take a dynamic approach to implementation – one that revisits this plan on an annual basis at a minimum. TIP Strategies, Inc. Theory Into Practice 7 Waxahachie, TX 1. HEALTHCARE & HIGHER EDUCATION Pursue higher education and healthcare as long-term target sectors. Sustaining a healthy and educated population is essential to any community’s economic vitality. Without high quality schools and medical care, communities are at a competitive disadvantage for retaining or attracting residents and businesses. Indeed, healthcare and education are now the fastest-growing occupations in the U.S. Sometimes referred to as “proximity services,” these sectors cannot be off-shored and often involve personal interactions requiring creativity and high skill levels. Demographics are also driving the rise of these sectors. Aging Baby Boomers are requiring more healthcare services. For example, healthcare related jobs account for seven of the top 20 fastest growing occupations and 14 out of the 20 fastest growing jobs in the U.S. STRATEGIC PLAN Active support for local healthcare and education sectors has not primarily been viewed as a core function for economic developers. These sectors were valued for supporting a healthy, dependable, and skilled local workforce, which is critical to attracting new employers. However, as more jobs in manufacturing and services are sent offshore or eliminated, there is a growing acceptance that the health and education sectors serve as vitals sources of output and employment growth. In recognition of the strong connection between education and healthcare to economic prosperity in the Metroplex, the Dallas Regional Chamber (DRC) has worked to support the development of both sectors. The DRC considers healthcare to be one of the region’s innovative clusters and has launched several initiatives to promote the Metroplex as a global healthcare center. In a March 2011 study commissioned by the Chamber, the UNT Center for Economic Development and Research estimates the total value added by the health care industry in the DFW region to be $52 billion annually, representing 15 percent of the region’s economic activity. In addition, to support the regional workforce, the DRC created a five-year strategic plan dedicated to improving public education in the region, with an initial focus on DISD. While these are examples of large regional initiatives, there are also numerous local efforts to bolster economic development by supporting healthcare and education in the Metroplex. The education and healthcare sectors are critical pieces of Waxahachie’s social and economic fabric. The presence of Baylor Medical Center, WISD, Navarro College, and Southwestern Assemblies of God University (SAGU) are fundamental to the city’s quality of life. Moreover, these sectors are increasingly becoming economic engines for Waxahachie, as well. For example, between 2003 and 2010, Waxahachie’s healthcare industry added 555 jobs, making it the city’s 4th largest employment sector. With an aging population and healthcare expenditures on the rise, this sector will expand in the coming years. Likewise, projected strong growth in student enrollment at SAGU, Navarro College, and WISD will require additional educators and physical infrastructure to sustain the high quality educational programs. TIP Strategies, Inc. Theory Into Practice 8 Waxahachie, TX Healthcare The presence of a hospital is a critical community and economic development asset. It is essential to the quality of life of a community and its residents. These medical centers are now recognized as economic assets. Waxahachie has served as the healthcare center for Ellis County for nearly a century, with Baylor Health Care System as the chief provider for almost 30 years. Driven by the strong population growth in the area, Baylor is expanding its presence in Waxahachie by constructing a new state-of-the-art hospital at the northwest corner of the I-35 and Hwy. 287 intersection. Such a facility has the potential to serve as an anchor for new medical, commercial, retail, and high-tech development surrounding that important juncture. The City of Waxahachie and its economic development partners should work closely with Baylor to ensure the successful development of Healthcare as an Anchor the hospital, optimize the direct and indirect economic growth associated with it, and assist in identifying alternative Although healthcare and education facilities uses for the existing hospital. 1.1. Ensure the long-term success of Baylor Medical Center (BMC). 1.1.1. 1.1.3. The City of Waxahachie should continue providing financial, planning, and technical assistance to BMC in support of the relocation. Continue working closely with BMC to ensure that the city remains responsive to the proposed facility’s infrastructure needs, including roads, water, sewer, and utilities. Work with BMC to launch a capital campaign to help finance the new hospital. Heighten awareness for fundraising throughout the community. Encourage local charity and community organizations to contribute and raise money for the campaign. Work with Baylor and the developer of the adjacent office building in marketing the site to healthcare service providers in the region. Examples of developments that have used healthcare and/or education facilities as anchors include: Tradition (Gulfport, MS): www.traditionms.com Assist in the recruitment of new healthcare service providers to the planned office building. Mueller (Austin, TX): www.muelleraustin.com Target the development of complementary businesses and activities on and near the site, including high-quality retail, hospitality, and residential development. Avery Centre (Round Rock, TX): www.waterstonedevelopment.com/retp Acex.php TIP Strategies, Inc. Theory Into Practice STRATEGIC PLAN 1.1.2. Assist the relocation of BMC to its new site along IH-35. are most often not on a community’s tax roll, more developers are using these types of facilities to anchor their mixed use developments. Users of these facilities generate demand for other services – housing, retail, dining, and hospitality – and employees of the facilities often earn higher than the average income. This built-in demand, in turn, increases the attractiveness of the development to tenants, allowing the developers to charge premium rents and even expedite the development timeline. 9 Waxahachie, TX 1.1.4. Assist in identifying adaptive reuse alternatives for the existing hospital building. Consider hiring a hospital re-use consultant to assess the feasibility of an adaptive re-use project. Create a list of potential strategic uses for the space and invite developers to propose a plan for the site in an open process. Reuse options should consider other efforts to attract additional higher education programs to Waxahachie. Other alternatives may include residential or commercial uses. Brighton Learning & Resource Campus, Brighton, CO The Brighton Learning & Resource Campus is an award-winning project that was an adaptive reuse of 75,000 SF main hospital building and 25,000 SF separate medical office building to house multiple health and educational resources for the community. http://www.guidancebrokers.com/content/mo del-adaptive-re-use-project-brighton-co Support BMC’s competitive position by marketing the hospital internally and externally. Local allies should engage in a public relations campaign championing BMC’s quality of care and overall positive influence in Waxahachie and Ellis County. 1.2. Establish a new medical overlay zoning district to encourage new healthcare sector development and employment in the area surrounding the new BMC site and other targeted areas of the city. 1.2.1. The medical overlay district should be applied to the area surrounding the new BMC site to promote and accommodate new high quality healthcare investment and employment in the area. 1.2.2. The district should include language allowing for the development of healthcare related medical offices; nursing homes; medical/dental clinics; labs; emergency services; medical vocational/business schools; and medical device manufacturing. 1.2.3. The district should also permit complementary uses such as hotels, financial institutions, day care, destination retail, and other non-medical professional services. EXAMPLES: Medical Districts Griffin, Georgia, has established a Medical Overlay District (MOD) to support the investment of the various institutional uses. The MOD will place restrictions on those uses deemed incompatible with the future land uses anticipated in the area. The area is also intended to have a more urban, pedestrian-friendly character in the future, and therefore replacement standards that support this vision are included in the overlay district. Finally, mapped limitations on heights TIP Strategies, Inc. Theory Into Practice 10 STRATEGIC PLAN 1.1.5. BMC, the City, and other local allies should evaluate the site and determine the feasibility of various re-use scenarios. This can be accomplished by commissioning an independent study or creating a city-led task force in conjunction with BMC. Waxahachie, TX will help reduce the impact of large-scale uses on the surrounding neighborhoods. Consideration has also been given to the addition of an Enterprise Zone within the MOD to facilitate the recruitment of prospects. http://www.cityofgriffin.com/LinkClick.aspx?fileticket=kjt18curNdc%3D&tabid=37 Punta Gorda, Florida established a Medical Overlay District (MO) in its 2025 comprehensive plan. The district was established to provide for the logical expansion of the medical office needs necessary to accommodate the growing community and region in an effort to accommodate highly-specialized, unique uses and development types related to the medical field. The intent of this MO district is to be as generous as possible in permitted uses while at the same time maintaining a clean, attractive community that provides an extension of the community primarily for medical practices. http://www.chnep.org/info/HH/compplans/Punta%20Gorda.pdf 1.3.1. Community leaders should be willing to meet with physician candidates BMC is recruiting to help sell the benefits of working and living in Waxahachie. 1.3.2. Promote the development of housing products in Waxahachie that are desired by healthcare providers and staff, including: Executive housing to positively influence doctors and other highly paid staff to live in Waxahachie. Adequate multifamily housing options for entry-level and non-technical staff. Medical districts are special-use zoning districts that traditionally promote, maintain, and develop medical healthcare facilities and medical education and research. The first districts date back to the early 1940s in large urban areas. In recent years, the medical district concept has transformed into a strategy leveraging the local healthcare employee base as a foundation for economic development and redevelopment projects. In some urban areas, medical districts are used to link medical facilities with older neighborhoods to spur economic revitalization. In addition to the urban districts, self-contained “healthcare villages” are being developed—usually on suburban green-field locations. In recent years, medical villages have been established in places such as Plano, TX; Clarkston, MI; Jackson, NJ; and Skokie, IL. STRATEGIC PLAN 1.3. Assist BMC in attracting/retaining talent. Medical Districts 1.4. Work with WISD and post-secondary institutions to expand medical education programs. 1.4.1. Encourage and support WISD in the development of allied health programs in secondary schools to assist in supplying labor force for BMC and other potential healthcare providers. Coordinate meetings between BMC and WISD to help the district better understand the hospital’s semi-skilled labor needs that the school district could assist in supplying. Assist in identifying potential funding sources for initiating allied-health programs at WISD. TIP Strategies, Inc. Theory Into Practice 11 Waxahachie, TX 1.4.2. Explore the possibility of WISD and BMC establishing a formal internship/apprenticeship program to aid in the transfer of vocational students to entry-level positions at the new hospital. Support the establishment of an upper division nursing education program or other healthcare-related satellite training facility operated by a four-year higher education institution in Waxahachie. Meet with area higher education institutions to communicate the goal and opportunity for providing upper division healthcare training in Waxahachie that complements nursing education already provided by Navarro College. If the city receives positive feedback, consider options (e.g., property acquisition and donation, infrastructure development and provision, as well as other incentives) to assist in the establishment of a facility in Waxahachie. The city should encourage the development in a location that may eventually serve as a full-fledged higher education center. 1.5. Target medical device companies for recruitment. STRATEGIC PLAN 1.5.1. See Strategy 4.2. TIP Strategies, Inc. Theory Into Practice 12 Waxahachie, TX Higher Education Home to Navarro College and Southwestern Assemblies of God University, Waxahachie has a compelling economic development interest in expanding higher education programs available in the community. These institutions provide vital education and training opportunities to residents and workers of Ellis County. They also serve as a conduit for attracting creative talent to the community, in the form of both students and faculty. Waxahachie’s growing population enjoys an above-average share of people enrolled in post-secondary education – 8 percent in Waxahachie compared to 6 percent in the DFW Metroplex. However, only 21 percent of the city's residents hold a college degree or higher. For the broader Metroplex, the ratio is 30 percent. These contrasting figures relate to the lack of a public four-year institution in Waxahachie. They may also be the consequence of fewer employment opportunities in Waxahachie requiring a bachelor’s degree. “Higher education is a key actor in the revitalization of urban communities, in the development of responses to declining economics in rural areas, and to the competitive strategies of regions, states, and nations.” Waxahachie’s economy has historically been reliant on agriculture and manufacturing. For much of the 20th Century, these sectors offered workers with no college education a shot at a middle class lifestyle. However, as US employment in both sectors has declined in recent decades, the pressure on workers to pursue postsecondary education and training has increased. This is particularly true for those seeking careers in high technology, professional services, and healthcare. For Waxahachie to successfully transition its economy, it must provide its residents with new post-secondary educational opportunities, including bachelor’s and advanced degree programs. 1.6. Establish a Waxahachie Higher Education Task Force to evaluate and plan for future higher education needs and investments in the community. The purpose of the task force is to coordinate long-term efforts at expanding the higher education capacity in Waxahachie, including the attraction of upperdivision degree programs. The task force would also seek to identify new opportunities for greater collaboration between education, businesses, government, and economic development. 1.6.1. The task force should be composed of representatives of the city, local educational institutions (WISD and post-secondary), businesses (small, medium, and large), economic development, workforce development, and other important local institutions. Identify a well-known and respected business or education leader to chair the task force. The chair should take the lead in recruiting and assembling the members (10-15) of the task force. Once the task force is assembled, create an agenda for meetings, the scope of work to be undertaken, specific tasks, and expected deliverables. The task force may consider forming subcommittees to study and report on specific issues. TIP Strategies, Inc. Theory Into Practice 13 STRATEGIC PLAN Eugene P. Trani and Robert D. Holsworth, The Indispensable University: Higher Education, Economic Development, and the Knowledge Economy (Lanham, Maryland: Rowman & Littlefield Publishers, 2010), 2. Waxahachie, TX 1.7. Formalize efforts to attract public four-year degree opportunities to Waxahachie. Form a subcommittee within the Higher Education Task Force focused on expanding four-year degree programs in the city. Case Study – City of Roseville Higher Education Task Force 1.7.2. Assemble an information and data packet on the community that substantiates the need and the business case for locating upper division programs in Waxahachie. This should be made available as both a hard copy and in electronic format. 1.7.3. Evaluate financial incentive options to support the expansion of higher education. 1.7.4. Develop a marketing and outreach strategy, including the development of a website. 1.7.5. Continue meeting with representatives of 4-year colleges and universities in the state to make the case for locating in Waxahachie. The City of Roseville, California established a Higher Education Task Force to develop a strategy designed to attract higher education facilities and related investment to the community. The task force was formed and a work plan adopted by the city council in June 2011. The Task Force included representatives from regional higher education providers, K-12 education, local elected officials and public members. 1.8. Explore the long-term development of a higher education center in Waxahachie. 1.8.1. The Higher Education Task Force should begin evaluating the feasibility of establishing a higher education center in Waxahachie to house new four-year degree programs. STRATEGIC PLAN 1.7.1. The Task Force met five times from July 2011 to January 2012 to develop the recommendations included in a final report (linked below). Open a dialogue with potential partners and stakeholders to discuss the concept of a higher education learning facility. Discuss with Navarro College officials how a center in Waxahachie can complement the programs offered and envisioned at the Midlothian Higher Education Center. Investigate the possibility of redeveloping the existing Baylor Medical Center as a higher education center. Meet with officials at other higher education centers in Texas to understand the opportunities, challenges, and processes associated with developing a center. Some candidates include the Collin Higher Education Center, the Round Rock Higher Education Center, the East Williamson County Higher Education Center, and the Lampasas County Higher Education Center. Meet with the Texas Higher Education Coordinating Board to communicate the goal of expanding of higher education assets in Waxahachie and obtain guidance and feedback. TIP Strategies, Inc. Theory Into Practice http://www.roseville.ca.us/civica/filebank/blo bdload.asp?BlobID=21967 14 Waxahachie, TX 1.9. Support and strengthen the missions of Navarro College and SAGU. 1.9.1. The City should incorporate information regarding specific academic and training programs at Navarro College and SAGU in its economic development marketing materials. Training and academic programs that support economic development goals and priority sectors should be highlighted. Navarro College and SAGU should provide updated Waxahachie-related information, data, and events on its Waxahachie Campus web pages. When appropriate, Navarro College and SAGU should consider inviting community representatives to participate in student and faculty recruitment events. Continue to encourage joint participation by city and college leadership on relevant boards, commissions, and panels. STRATEGIC PLAN 1.9.2. The city, Navarro College, and SAGU should engage in cooperative marketing efforts, highlighting Waxahachie’s education, economic development, and community assets. 1.10. Support capital and education program expansion at Navarro College and SAGU. 1.10.1. Continue working with the Navarro College administration to identify opportunities to increase program and degree offerings at the Waxahachie Campus linked to strategic industries such as advanced manufacturing, business, healthcare, and information technology. 1.10.2. Maintain open lines of communication with Navarro College regarding the city’s financial support for capital projects at the Waxahachie Campus. 1.10.3. Encourage local businesses and nonprofits to financially support Navarro College and SAGU’s scholarship, capital, and program needs. 1.11. Support K-12 excellence at WISD. 1.11.1. Highlight the many educational successes of WISD in promotional media. Notably, promote Waxahachie Global High School and its STEM curriculum. 1.11.2. Encourage greater dialogue between the local business community and WISD. Form a subcommittee of the Higher Education Task Force dedicated to forging closer ties between the local business community and educational institutions. 1.11.3. Foster closer alignment between local economic development activities and WISD programs. TIP Strategies, Inc. Theory Into Practice 15 Waxahachie, TX Expand internship/apprenticeship programs to aid in the transfer of career and technical education students to entry-level positions among existing industrial employers and/or targeted industries. Enhance and expand partnerships between WISD and area higher education institutions in developing career and technical education programs in targeted industries. STRATEGIC PLAN TIP Strategies, Inc. Theory Into Practice 16 Waxahachie, TX 2. LAND DEVELOPMENT Encourage the development of sites and buildings needed to accommodate new investment and employment opportunities. STRATEGIC PLAN In the current economic development environment, communities that feature shovel-ready sites and buildings have a significant competitive advantage in attracting and retaining businesses. This advantage is compounded when a city or economic development organization can offer property as an incentive. Nearby examples of such deals include Sysco Corp in Ennis and Triumph Aerostructures-Vought Aircraft Industries in Red Oak. In 2010, Sysco purchased 257 acres of from the City of Ennis to construct a one-million square foot super regional distribution center. In 2011, Triumph-Vought purchased 100 acres from the City of Red Oak to establish an aerospace production facility. In both cases, the companies purchased the land in city-controlled industrial parks under attractive terms. The availability of shovel-ready sites and buildings for business expansion and recruitment continues to be a major economic development challenge for Waxahachie. The city has an abundance of greenfield land that is suitable for industrial, flex/tech, and logistics development. However, very few sites are infrastructure-ready and none are controlled by the City of Waxahachie. With dozens of public and private industrial parks located throughout the DFW Metroplex, Waxahachie finds itself at a competitive disadvantage for attracting large employers. To overcome this challenge, the City of Waxahachie should explore its options for assembling land appropriate for industrial and business park development. This goal does not argue for Waxahachie to invest in a mega-site. The prospect of filling a 1,500-acre park in the post-Great Recession environment is improbable. Moreover, Waxahachie has other economic development priorities that will compete for limited public resources, including investments to spur growth in the healthcare and higher education sectors. Still, there will be manufacturing prospects that Waxahachie is well positioned to compete for. Its location, transportation access, utility infrastructure, and growing population are real strengths. However, to attract a large employer in today’s highly competitive market, Waxahachie will have to add real estate to its economic development toolbox. TIP Strategies, Inc. Theory Into Practice 17 Waxahachie, TX 2.1. Identify and market available sites and buildings for new private development. 2.1.1. 2.1.2. The inventory ideally should catalog properties suitable for industrial, logistics & distribution, and commercial development in the city, including location, size (acreage and net acreage), ownership, zoning, environmental, planning, shovel-readiness, and infrastructure requirements. (See Appendix B: Considerations for Future Business and Industrial Parks) Work with commercial real estate brokers and developers to collect information for the inventory. List the available sites on a new city economic development website and cross list them on other regional economic development websites and broker sites. A searchable database of available industrial and commercial properties should eventually be incorporated into the website. Add advanced property search and GIS mapping tools in future versions. The Greater San Marcos Partnership website features an advanced search function for available sites and buildings. http://www.greatersanmarcostx.com/sites-buildings.aspx Market available sites among site selection consultants and commercial real estate brokers in the Metroplex. Distribute a quarterly email newsletter to DFW commercial real estate brokers and site selection consultants highlighting economic development successes in Waxahachie and profiling specific development opportunities. Local property owners and real estate brokers should contribute information and content for the newsletter. The city and chamber should periodically host luncheons that showcase specific assets, such as available land and buildings or new projects. Local and regional developers, site consultants, and industrial and commercial brokers should be invited to attend. 2.2. Evaluate the feasibility of establishing a Waxahachie industrial and business park. (See Appendix B: Considerations for Future Business and Industrial Parks) 2.2.1. Engage the real estate development community to determine the market feasibility of new industrial/commercial site developments and if public sector involvement is needed. 2.2.2. Develop a system for evaluating and scoring the various options, including such parameters as: Availability and cost of land; Environmental and other constraints TIP Strategies, Inc. Theory Into Practice 18 STRATEGIC PLAN 2.1.3. Create an inventory of available privately-held sites. Waxahachie, TX Access to highways and rail; Flat land, good drainage; Access to utilities (water/waste water, electricity, gas); and Access to telecommunications infrastructure, including broadband internet. 2.2.3. Work with an experienced developer and/or engineering firm to evaluate a chosen site and develop a master plan. 2.2.4. Determine the ownership structure for a park, exploring options to include: Public-sector development, ownership, and management. Public/private partnership (public ownership, private development and management). Private ownership supported by public sector development incentives. 2.2.5. Develop a business plan for the park, including operations, maintenance, targeted industries/tenants, and pricing structure for lots. 2.2.6. If the city determines the development of a publicly-owned industrial park is not feasible, alternative strategies should be considered to encourage new employment sites. Purchase a single site or building. Such a purchase could be part of an incentive deal the city negotiates with an investment prospect. For example, the city would agree to buy an existing site and sell or lease it back to a company at below-market terms. Another is to acquire private land or buildings and set it aside for future targeted development when market conditions warrant. This practice, commonly referred to as land banking, is a viable option for communities seeking to preserve undeveloped land for a specific future purpose. STRATEGIC PLAN 2.3. Strengthen development standards in targeted residential, retail, and commercial zoning districts to ensure a better, more diverse building and housing stock. One of the threats cited in the SWOT analysis is the spread of substandard housing stock in Waxahachie. This concern is also holds true for some existing forms of retail and commercial development activity. In is in the city’s best long-term economic interest to feature a diverse stock of housing and building options for residents and businesses. There exists a large amount of undeveloped land in the city, some of which is located in high-profile prime development locations. To ensure these areas are eventually developed to a use and quality that maximizes their potential, the city should look at strengthening development standards where needed. The benefits of promoting higher quality development will be to bolster the city’s economic base, maintain and protect property values, and enhance the physical image and identity of Waxahachie. TIP Strategies, Inc. Theory Into Practice 19 Waxahachie, TX 2.3.1. 2.3.2. City leadership and planning staff should review existing residential, commercial, and retail development standards for certain zoning districts within the city to identify where and to what extent standards should be strengthened. Ensure the zoning and design standards along the IH-35 corridor promote higher quality development and restrict substandard retail and industrial uses. (See Strategy 4.2.) 2.4. Identify and implement plans for long range water, wastewater, telecommunications, electrical, and road improvements needed to serve new and existing business growth. 2.4.1. 2.4.2. Evaluate infrastructure availability and quality in future industrial/tech sites. (See Appendix B: Considerations for Future Business and Industrial Parks) 2.5. Pursue new development opportunities associated with the Mid-Way Regional Airport. 2.5.1. Work with Midlothian on joint marketing initiatives associated with the airport. 2.5.2. Work in conjunction with adjacent property owners & realty brokers to develop and maintain a vacant/available land data base for industrial and commercial development used for shared marketing efforts. 2.5.3. 2.5.4. Consider establishing a separate Airport Development Zone or Airport Enterprise Zone to provide incentives to attract incremental aviation-centric and non-aviation traditional businesses to the airport and adjacent area. Example: North Fort Worth Airport Development Zone Example: The City of Port Arthur Jefferson County Airport Enterprise Zone Ensure the utilities, infrastructure and building sites both on the airport and adjacent to it are ready for business attraction and development by a prospective company. Readiness is critical to ensure a company’s rapid location of their business to the area, as well as demonstrate the Mid-Way Airport and adjacent areas overall competitive edge. TIP Strategies, Inc. Theory Into Practice Commercial Air Charter Services Flight Scheduling & Dispatching Aircraft Engines & Parts Brokerage Testing Laboratories Aircraft Insurance Agencies And Brokerages Warehousing STRATEGIC PLAN Prioritize infrastructure projects based on which development areas and sites are most suitable for expanding businesses and prospective businesses. Sample Businesses and Industries Linked with Airport Development Aircraft Engines & Parts Wholesalers General Warehousing & Storage Aviation Light Mixed Use & Manufacturing Fluid, Hydraulic, Pneumatic Aircraft SubAssemblies Manufacturing Prototype Aircraft Engines & Engine Parts Development And Production Aircraft Communication Equipment, Antennas, GPS Equipment Manufacturing Aircraft Engine Overhaul/Remanufacturing Aircraft Engine Parts Manufacturing Aircraft Assemblies, Subassemblies, Parts, Component Manufacturing 20 Waxahachie, TX 3. ECONOMIC DEVELOPMENT CAPACITY & TOOLS Expand the capacity and tools of the community to conduct economic development. For any economic development plan to be successful, it must have the support of the citizens and stakeholders it is designed to serve. Since the ultimate goal of economic development is to stimulate private investment, the support of the private sector is particularly important to a plan’s success. The goals, strategies, and actions must also correspond to the available local resources and capacity for conducting economic development. With these considerations in mind, the vision articulated in this plan calls for Waxahachie to become a destination for high-skill jobs and new investment in the Metroplex. Achieving that vision will require additional investments in the economic development capacity of the community, including public resources. Waxahachie can approach the need for greater capacity and engagement with the local business community in different ways. One option is for the City of Waxahachie to dedicate additional internal resources toward the implementation of this plan. A one-person city staff responsible for executing an ambitious plan is not realistic. Along with additional staff, a multi-organizational economic development team should be formed to lead the implementation of the plan and advise the City of Waxahachie on economic development matters. Another option is to establish a completely new organization that would independently coordinate and execute economic development activities for the community, including business recruitment, retention, and marketing. While this is the preferred approach of many communities, it may not be feasible in Waxahachie (in the near term). However, as Waxahachie continues to grow, the city’s financial situation improves, and the plan’s implementation results in demonstrable successes, the concept of establishing a new economic development organization should be considered. TIP Strategies, Inc. Theory Into Practice Economic development organizations are expected to perform some, or all, of the functions listed below. marketing and recruitment (targeted industries) business advocacy business expansion and retention financial incentives real estate disposition and improvements land and buildings bonding authority infrastructure improvements workforce and professional training business start-up support STRATEGIC PLAN Several recommendations in the plan reach beyond traditional economic development, including the pursuit of higher education and healthcare as primary targets. Their implementation will require the support of partners from both the public and private sectors. It is, therefore, critical for local partnerships and joint ventures to support its implementation. The need for cooperation and partnerships may extend to other communities within the South Dallas area, as well as economic development efforts led by regional organizations such as the Greater Dallas Chamber. Economic Development Functions 21 Waxahachie, TX 3.1. Create task forces to manage the implementation of the plan. The purpose of these task forces is to coordinate the short- and medium-term efforts the plan’s implementation. Task forces should be formed around the goals of the plan: medical, education, land development, economic development capacity, marketing and image, and downtown revitalization. Each task force will have a designated leader who guides and directs the groups’ goals, strategies, and ultimate action steps. The task force leaders are expected to coordinate their actions with the Executive Steering Committee and the Full Economic Development Committee. The task forces will have no binding authority, but will have an advisory and organizing function. Each will be tasked with prioritizing the plan’s initiatives for implementation and identifying the necessary resources. They should also regularly evaluate the implementation schedule and make adjustments as conditions warrant. The teams should strive to demonstrate specific successes toward implementation, especially on higher profile priority projects. Recruit volunteers representing diverse interests in Waxahachie to serve as task force members. 3.1.2. Establish a regular meeting schedule. 3.1.3. Utilize an online project management (Basecamp) to facilitate coordination and communication of task force activities. 3.1.4. Periodically update the Waxahachie City Council on the progress of implementation. STRATEGIC PLAN 3.1.1. 3.2. Establish a city economic development fund. 3.2.1. The City of Waxahachie should create a fund that can be utilized to support marketing and business retention efforts, recruitment incentives, and specific development initiatives. The annual allocation to the fund should be at least $200,000. 3.3. Consider the use of other incentive tools. To incentivize new private investment and employment in the community, the City of Waxahachie has utilized tax abatements, Texas Enterprise Zone, Freeport Exemption, and the existing Tax Increment Reinvestment Zone (TIRZ). In addition to these incentives, Waxahachie should consider using other economic development tools, including: Chapter 380 Agreement: This chapter of the Texas Local Government Code authorizes Texas municipalities, both home-rule and general law municipalities to provide assistance for economic development. Texas cities may provide monies, loans, city personnel, and city services for promotion and encouragement of economic development. Public infrastructure cost participation: To encourage certain commercial, industrial, or residential developments, the city may consider contributing a portion or the entire amount of the required city infrastructure. The city is currently working with BMC on infrastructure assistance for the new hospital. TIP Strategies, Inc. Theory Into Practice 22 Waxahachie, TX Development fee rebates: Waxahachie may consider rebating a portion or the entire amount of all city fees charged in the regulation of land development. Revolving Loan Fund (RLF): A Revolving Loan Fund (RLF) provides operating capital for small developing companies. Waxahachie should consider establishing a RLF to support businesses in targeted sectors or in specific geographic areas of the city, such as the downtown square. To assist in capitalizing an RLF, Waxahachie could apply for a grant from the Economic Development Administration (EDA) through the agency’s Revolving Loan Fund Program. 3.4. Hire additional economic development staff. 3.4.1. The city manager and economic development director should take the lead in interviewing and hiring candidates to fill the economic development specialist position. The minimum qualifications for the economic development specialist should include: Some of the major responsibilities the economic development specialist should perform include (but are not limited to): Helping to design and maintain an economic development website for Waxahachie Building and maintaining databases of existing businesses and preferred business sites Researching and compiling site location, demographic, and economic information regarding Waxahachie for investment prospects and site location consultants. Redesigning and updating a community profile Preparing prospect packets Researching prospects and target employers Graduation from a four-year university with a degree in urban planning, business or public administration, economics, marketing, finance, or a related field, and Representing Waxahachie at various economic development events throughout the Metroplex Two to three (2-3) years related experience. Conducting existing business visitations Completion of the Basic Economic Development Course (BEDC) or similar accreditation. Administering a local employer survey Coordinating local business roundtables and forums TIP Strategies, Inc. Theory Into Practice STRATEGIC PLAN Currently, the City of Waxahachie employs one full-time economic development professional to manage the city’s economic development efforts. This level of staffing resources is insufficient to enact the programs and initiatives contained in this plan. Therefore, TIP recommends the director be supported by an economic development specialist. Economic Development Specialist Duties 23 Waxahachie, TX 3.5. Build community support for a new economic development alliance in 3-5 years. For many cities in Texas, community economic development efforts are led by dedicated organizations. Typically, these are in the form of Section 4A or 4B development corporations, which are funded by local sales tax revenue. Indeed, Waxahachie has adopted a 4B sales tax to fund community development projects. Other cities without economic development sales tax corporations rely on regional chambers (with assigned economic development staff) or other foundations to lead economic development efforts. An organizational framework common in other states is an alliance that relies on both public and private financial support. Often, Example – Kenosha Area Business Alliance these are business membership organizations supported by annual dues and periodic (KABA) capital campaigns. They employ professional staff focused on recruitment, business retention & expansion, and land assembly/development. In most cases, a separate chamber KABA is the lead business organization that drives of commerce is responsible for local business advocacy, networking, event planning, and economic development throughout Kenosha County, resident attraction. Wisconsin. In addition to financing numerous The feedback TIP has received suggests the establishment of such an alliance in Waxahachie is not financially and politically feasible in the short-term. Nevertheless, TIP recommends the community moves toward building support for a new dedicated economic development organization over the next three to five years. 3.6. Establish a robust business retention and expansion program. Business retention and expansion (BRE) should be the heart of any economic development program. A solid BRE program will help Waxahachie protect and even grow its existing base of employers. Focusing on existing employers makes sense – they are already invested in the community. In the context of the private sector, a business retention program is like the adage that says you must attend to your existing customers first. If you don’t, you jeopardize your base. This is especially true in light of current economic conditions, with fewer recruitment prospects and more existing businesses in distress. projects for expanding or relocating businesses, KABA has also worked with the City of Kenosha, the Village of Pleasant Prairie, Kenosha County, and Wispark LLC to establish the Business Park of Kenosha and Lakeview Corporate Park as the premiere business locations in Southeast Wisconsin. STRATEGIC PLAN The primary advantage of a dedicated economic development alliance is mutual participation of the private and public sectors in economic development. Economic development programs are most effective when they have the support and active participation of the existing business community. An alliance also provides some separation between business recruitment/retention and local issues. With over 300 members, KABA represents a diverse group of companies and individuals interested in the economic development of Kenosha County. Members range in size from Fortune 100 companies to small business owners, sole proprietors, and individuals. Each member makes an annual investment in KABA based on the size of the business measured by the number of employees in the region. www.kaba.org At its simplest, a BRE program helps the economic development organization arrive at a clear understanding of the businesses already in the community and helps keep tabs on changes and challenges area businesses face. The primary functions of a BRE program are threefold: TIP Strategies, Inc. Theory Into Practice 24 Waxahachie, TX 1. to ensure that at-risk businesses receive support, especially when that risk is the result of labor issues or other factors the community can influence in some way; 2. to expand and support growing businesses; and 3. to advocate for local businesses generally, by identifying their issues and needs. The economic development director at the City of Waxahachie is involved in BRE activities. However, with no support staff, the director’s ability to conduct a robust program is limited. The Waxahachie Chamber of Commerce is also engaged in local business outreach and survey efforts, mainly focused on membership input and tourism attraction. If a new economic development specialist position is established, TIP recommends the city, in collaboration with the chamber, engage in a comprehensive BRE program. Build and maintain inventory of existing businesses. The city should develop and maintain a database of existing businesses and available properties in Waxahachie. Public business records, such as tax records, utility hookups, and ownership transfers, are good sources for information to populate the database. The membership directories of the chamber and Waxahachie Downtown Merchants Association should also be utilized. 3.6.2. Utilize a CRM system to manage contacts. Install and utilize a customer relationship management (CRM) software system for maintaining the business inventory and managing the city’s relationships with local businesses. STRATEGIC PLAN 3.6.1. Evaluate systems utilized by other economic development organizations in the region. Three widely-used CRM programs are Sage Act!, Salesforce.com, and Insightly. TIP recommends utilizing a web-based program if other organizations such as the chamber and Waxahachie Downtown Merchants Association will formally participate in the BRE program. 3.6.3. Administer a regularly scheduled employer survey. Conduct an annual employer survey as a means for keeping in touch with local business and documenting specific needs or expansion plans. The survey should be conducted as both a paper and online survey. 3.6.4. Conduct business visitations. To supplement findings from the employer survey, city economic development staff should visit at least 40 businesses per year. The purpose of the visits should be to gauge the ability and needs of local businesses to operate successfully and possibly expand in Waxahachie. A set procedure should be established for these visits to ensure that consistent information is gathered. 3.6.5. Host business roundtables. Provide opportunities for local businesses to meet regularly with the city’s economic development and planning staff. The purpose of these meetings is similar to that of the employer survey, but the face-to-face approach often stimulates discussion that a survey cannot. This could be accomplished by holding quarterly forums or in conjunction with an existing event offered by the Waxahachie Chamber of Commerce. 3.6.6. Provide networking opportunities for small businesses. In addition to the forums discussed above, networking opportunities can be a valuable part of a BRE program. Hosting a monthly luncheon or “after hours” event has been a mainstay of chambers and economic development organizations. The Waxahachie Chamber of Commerce already host regular events for local businesses. The city should continue supporting this organization and TIP Strategies, Inc. Theory Into Practice 25 Waxahachie, TX encourage local small businesses to attend and participate. Supporting existing events – rather than introducing competing events – should be the focus of this task. 3.6.7. Promote Existing Small Business Programs and Services. Work with the Navarro College SBDC and other relevant organizations in the Metroplex to ensure that existing small business and entrepreneur services are promoted to local businesses. 3.6.8. Review Existing Regulations. City staff should conduct a review of development regulations, ordinances, and approval processes to ensure that government is being responsive to the small business community. Small business owners should be part of this review. 3.6.9. Have an intervention strategy. Develop a “rapid response” strategy for dealing with potential layoffs or plant closures. Under the Federal Worker Adjustment and Retraining Notification Act (WARN) of 1989, companies with 100 or more employees must notify local governments and state workforce organizations about facility closings or mass layoffs at least 60 days in advance of the event. However, at this point, it is frequently too late to do anything. Identify “at-risk” companies early-on and develop an aggressive intervention strategy. As part of this effort, the community should identify the tools available to help avert such actions or ameliorate their impact. Examples of these tools include: Partnering with the Texas Workforce Commission and the Waxahachie Workforce Center’s rapid response teams to provide assistance to workers facing dislocation. Cultivating relationships with site selectors, developers, and real estate brokers to ensure prompt reuse of a closed facility by a new tenant. STRATEGIC PLAN 3.6.10. Report on progress. Provide ongoing evaluation and reporting by preparing an annual report to the community on progress-on-goal. TIP Strategies, Inc. Theory Into Practice 26 Waxahachie, TX 4. MARKETING & IMAGE Raise the profile and enhance the image of Waxahachie. Residents of Waxahachie are very proud of their community. This truth became obvious to the TIP team throughout our numerous discussions with leaders, business owners, and citizens. And their sense of pride is wholly justified. Waxahachie enjoys many positive attributes, most visibly its historic charm and unique architecture. Moreover, the city’s people are warm, outgoing, and genuinely interested in making their community a better place for all residents. STRATEGIC PLAN However, in addition to pride, many citizens expressed a sense of frustration that so few outsiders are aware of all the good things Waxahachie has to offer. To those who have never visited Waxahachie, the image of the city is largely defined by what is visible along IH-35. Very little on the interstate speaks to the distinctive character of the city, which remains hidden a few miles to the east. Another image challenge Waxahachie must overcome is the stigma associated with being located in the South Dallas corridor. Unfortunately, from an economic development perspective, communities south of the Trinity River struggle with the unfair perception of not being as desirable as communities to the north. The city’s economic development stakeholders recognize that Waxahachie’s image challenge cannot be simply overcome by advertising on billboards on IH-35 or by adopting a glossy branding campaign. These issues must be addressed by enhancing the quality of development and infrastructure along the interstate and linking it to the downtown core. Toward this end, the city is working with Texas Department of Transportation (TxDOT) on beautifying the IH-35/287 interchange and has engaged an engineering firm – Halff & Associates – for design work. Baylor Medical Center’s planned relocation to IH-35/287 also will help to redefine Waxahachie’s appearance from the highway by projecting an image of high quality development. In addition to highway beautification, new development guidelines should be enacted by the city that promotes higher quality development IH-35. Waxahachie must also become more proactive in marketing itself to investment prospects. This includes designing a new economic development website and engaging with the companies and site selectors in targeted sectors. TIP Strategies, Inc. Theory Into Practice 27 Waxahachie, TX 4.1. Continue efforts to beautify IH-35 gateways to the city. 4.1.1. Complete the IH-35/287 interchange landscape and facade beautification project. Work with Halff & Associates to select a design. Coordinate with TxDOT on funding and construction. Fort Worth’s 35W Coalition 4.1.2. Work with TxDOT and state officials to seek funding for reconfiguring the IH35/287 cloverleaf interchange to improve access and connectivity. 4.1.3. Initiate a long-term fundraising campaign to support beautification initiatives at other key interstate gateways. 4.2. Ensure the zoning and design standards along the IH-35 corridor promote higher quality development and restrict substandard retail and industrial uses. Enhancing Waxahachie’s image along I-35 cannot be achieved only through Landscape and Façade beautification. It will also require long-term efforts seeking to improve the type and quality of developments along the corridor. 4.2.1. Encourage developers to assemble parcels along IH-35 rather than develop small scale retail and industrial on smaller lots. Modifying lot standards along I-35 should address this issue. TxDOT standards prevent numerous curb cuts along the frontage road. The city could also modify its lot standards for areas along IH-35—increasing the size of the lots to prevent small lot development along the interstate. 4.2.2. Review zoning along IH-35 to encourage intense retail, commercial, residential, and medical development. New industrial developments along the corridor should be allowed only on specified industrial tracts. 4.2.3. Evaluate and strengthen standards and guidelines on issues such as site layout, lighting, and landscaping. TIP Strategies, Inc. Theory Into Practice STRATEGIC PLAN Future designs should be consistent with the design chosen for the IH-35/287 project. In response to rapid growth in the I-35W corridor in Fort Worth, a group of concerned citizens, business and land owners, developers and local and state officials formed the “35W Coalition.” This private, non-profit group is dedicated to finding solutions to transportation and traffic problems, and encouraging quality development along the I-35W corridor extending north from the core of Fort Worth into southern Denton County. The coalition’s targeted area is comprised of 107 square miles of land along I35W, including business, industrial, retail and residential developments. The coalition’s development goals include establishing design criteria to create cognitive entry points into the corridor; establishing a character for the corridor and allowing for maintenance of those design standards; protecting the investments of current and future landowners, investors and users; and maintaining high standards of quality for environmental protection and aesthetic quality. 28 Waxahachie, TX 4.3. Formalize a business recruitment program. The primary purpose of traditional economic development marketing is to generate interest from companies with expansion or relocation plans. Due to resource and personnel constraints, Waxahachie’s existing marketing outreach is very limited. However, as resources permit, the City of Waxahachie should enhance its business recruitment efforts and include the target industries listed in the adjacent text box. The attraction of companies is the activity most commonly associated with economic development organizations. Indeed, target industry recruitment is a cornerstone of most programs. While essential, industry recruitment is a staff and resource-intensive activity. Large metropolitan areas are able to afford it, but it is problematic for smaller communities. 4.3.1. Begin building awareness among decision-makers in target sectors in the Metroplex. Regional publications. Implement a public relations campaign targeted at regional publications. TIP recommends identifying key regional publications such as the Dallas Business Journal and sending press releases on recent business successes. The initial press release should promote the importance of economic development planning and how local leadership worked together to determine the best opportunities for Waxahachie. To support Waxahachie’s economic development recruitment efforts, TIP identified target industry sectors. They represent a combination of traditional (manufacturing and logistics) and non-traditional (healthcare and higher education) sectors. The recommended sectors capitalize on existing and emerging assets in Waxahachie and the larger DFW Metroplex. See Appendix B for additional information on the recommended targets. Healthcare (Goal 1) Higher education (Goal 1) Professional & technical services Medical devices & supplies Business, financial, & data services Logistics & distribution Food processing Visitation. Call on owners and managers of DFW companies to present the benefits of Waxahachie as a location for future expansion or for consolidation of facilities and operations. Newsletter. Develop and distribute a quarterly e-newsletter to regional businesses, public officials, site selectors, real estate developers, investment prospects, and other key stakeholders. In addition to communicating achievements and successes in Waxahachie, each issue TIP Strategies, Inc. Theory Into Practice STRATEGIC PLAN Due to resource and personnel constraints, Waxahachie’s existing marketing outreach is very limited. To formalize a more ambitious campaign, the department would require additional resources, both in terms staff and funds. TIP recommends city economic development staff concentrates on building greater awareness of Waxahachie as a destination for new investment among employers and site selectors in the DFW Metroplex, especially in the recommended target sectors (see text box). Waxahachie should be top of mind to companies seeking expansion within the region. The greatest emphasis should be placed on attracting high quality employers that will raise Waxahachie’s standard of living and expand its tax base. Recommended Target Sectors 29 Waxahachie, TX should highlight a different opportunity in the city. Services such as Constant Contact – an email marketing and contact management program for small businesses – make this a low-cost option for reaching target audiences. Email addresses can be gathered with a link on the city’s website and via contacts with individuals and organizations during the course of outreach activities. 4.3.2. Develop a database of developers, brokers, and site consultants in the DFW Metroplex. Continue to maintain and update information typically of interest to commercial and industrial site selectors on a redesigned city economic development website. Call on site consultants in the region. Offer assistance to market developers’ and land owners’ properties and buildings to prospective tenants. Periodically host events that showcase specific assets, such as available land and buildings or new projects. Local and regional developers, site consultants, and industrial and commercial brokers should be invited to attend. Actively participate in joint marketing efforts of Dallas Regional Chamber and other regional economic development organizations. 4.3.4. This may include attending call trips, trade shows, and conferences. Establish a prospect management system. Formalize the process by which prospects can indicate interest, receive information packets, visit Waxahachie, and apply for financial assistance. Post a digital form on the city economic development website allowing prospects to request an information packet, set up a visit and tour, and indicate interest in locating in the community. Redesign the city’s information packet that is provided to prospects. 4.4. Create a new city economic development website. The current city economic development department website lacks many of the functions and informational assets considered standard for basic site selection requirements, including an updated database of available industrial and commercial sites. In addition, the community profile and site location information is not organized or portrayed in an effective manner. The International Economic Development Council (IEDC) has prepared a TIP Strategies, Inc. Theory Into Practice 30 STRATEGIC PLAN 4.3.3. Begin building awareness among corporate site selectors. Waxahachie, TX comprehensive set of data standards for communities to use when presenting themselves to site selectors or prospective businesses. The data standards matrix and related information is available on IEDC’s website. (http://www.iedconline.org/?p=Data_Standards) 4.5. Influence the image of Waxahachie portrayed on the Web and through social media. 4.5.1. Assume ownership of Waxahachie’s entry on Wikipedia. Regularly update the information and data with references. 4.5.2. Local organizations such as the Waxahachie Chamber of Commerce should continue using Facebook and Twitter to update and inform businesses and residents of new announcements, upcoming events, and salient issues. A successful marketing strategy should also include reaching out to individuals and former residents with existing ties to Waxahachie. First, the target audience already has a familiarity with the community, requiring less education about the community. Second, individuals with strong ties to Waxahachie, especially young professionals with families, may already desire to return if given an opportunity. Third, these individuals would presumably be easier to reach through existing social networks and, therefore, less expensive to target. 4.6.1. Establish a marketing campaign urging former residents to “Come Home to Waxahachie.” Work with alumni organizations and career placement offices at WISD, Navarro College, and SAGU to assist in the development of a database of former students to whom marketing materials should be sent. Develop an electronic newsletter to inform former residents of opportunities and current events in Waxahachie (e.g., job postings, business expansions, investment opportunities, planning initiatives). Information on local events and opportunities can also be communicated via web-based social networking sites such as Facebook and Twitter. Enlist the support of the Waxahachie Daily Light in providing information about the newsletter and posting a link directly to its website. In many cases, viewing of the “hometown newspaper” is the sole source for information about Waxahachie for former residents. TIP Strategies, Inc. Theory Into Practice 31 STRATEGIC PLAN 4.6. Reach out to former residents and recent graduates. Waxahachie, TX 5. DOWNTOWN REVITALIZATION Revitalize Waxahachie’s historic downtown. STRATEGIC PLAN A vibrant downtown is a key component to economic vitality. Downtown revitalization influences every economic development issue facing the city of Waxahachie, from talent attraction and retention to quality of place to economic diversification. The commitment of Waxahachie to its historic downtown is evident. The community has been resilient in preserving the heritage and architecture of its downtown commercial buildings, gingerbread homes, and county courthouse. It has intervened to save the Texas Theater and renovate the MKT Train Depot using Tax Increment Reinvestment Zone (TIRZ) funds. In recognition of these and other efforts, Waxahachie was one of only three Texas cities in 2010 to be given a First Lady's Texas Treasures Award, which honors “communities that have shown a high level of creativity and ingenuity in recognizing and preserving their authentic Texas sense of place.” Unfortunately, despite years of investment by the City of Waxahachie; Ellis County; the TIRZ Board; Waxahachie Partnership, Inc.; the Waxahachie Downtown Merchants Association (WDMA); and the Waxahachie Chamber of Commerce (WCC), the downtown square continues to struggle as a commercial destination. As the retail, commercial, and residential center of gravity of Waxahachie moves northward, downtown Waxahachie is being left behind. The economic viability of downtown is hindered by perceived traffic congestion and road bottlenecks along the Hwy 77 corridor. Many commented to the consulting team that, despite the relatively short distance from the intersection of the Hwy 77/287 area to downtown, there is a perception that driving to the square is inconvenient, especially when most retail needs can be found in the strip centers to the north. The city’s ability to improve north-south access is weakened by TxDOT’s jurisdiction over Hwy 77. The aesthetics and quality of development along other portals into downtown, notably Main Street, would also benefit from enhancement. In April 2011, a team of downtown revitalization and historic preservation professionals conducted a site visit to Waxahachie and compiled their findings in a Main Street Program reassessment report published by the Texas Historical Commission. This study contains valuable recommendations local downtown stakeholder organizations should adopt as part of ongoing efforts to revitalize downtown Waxahachie. In addition to these recommendations, TIP suggests other strategies that may bolster the economic competiveness of downtown and its businesses. However, beyond all the programs and incentives focused on the central business district, the long term vitality of downtown will largely depend on the city’s success in attracting new higher intensity employment centers through the strategies outlined in the other four goals and linking them to the downtown. TIP Strategies, Inc. Theory Into Practice 32 Waxahachie, TX 5.1. Establish small business support resources and services in the downtown square. 5.2. Explore the use of new financial tools to support downtown business growth. 5.2.1. Consider establishing a Revolving Loan Fund (RLF) focused on supporting businesses in the central business district. See Strategy 3.3. 5.2.2. Create a municipal management district or a business improvement district that overlays the downtown core. Such a district would have the authority to raise funds that can be used for marketing activities, landscape maintenance, infrastructure improvements, and generally to supplement services provided in the area. 5.2.3. Consider reducing, abating, or deferring fees to encourage new businesses to locate downtown. 5.2.4. Pursue any available state and federal grant funds available for facilitating downtown revitalization efforts. 5.3. Work with Ellis County to redevelop its vacant offices on West Franklin. 5.3.1. Hold a developer forum to solicit ideas from the real estate development community for possible reuse of the offices. 5.3.2. Continue marketing the offices on the city’s website. TIP Strategies, Inc. Theory Into Practice 33 STRATEGIC PLAN A considerable challenge to sustaining a vibrant business sector in any community is the lack of experience and practical business knowledge most entrepreneurs possess when starting a business. It’s not the lack of a good idea that often causes a business to fail, but the lack of a good business plan. Local business owners and experts remarked to the consulting team that this has been a challenge in Waxahachie, particularly in the downtown square. Moreover, many failed entrepreneurs were not aware of the local mentoring and support resources available to them. It was suggested that if Navarro SBDC and WCC had a regular “A healthy and vibrant downtown boosts the presence in the downtown, more small business owners would seek assistance to help their economic health and quality of life in a enterprises succeed. community. Specifically, it creates jobs, incubates 5.1.1. Leadership at Navarro College, the SBDC, and the chamber should maintain a small businesses, reduces sprawl, protects presence in the downtown square. property values, and increases the community’s options for goods and services. A healthy 5.1.2. Invite outside business experts to give training and mentoring workshops in the downtown is a symbol of community pride and downtown square. history.” Downtown stakeholders may consider funding regular small business training workshops. - The Pew Partnership for Civic Change Waxahachie, TX 5.3.3. The city and TIRZ Board should maintain open lines of communication with the county about purchasing the offices. 5.4. Regularly track growth and development in the downtown. 5.4.1. Conduct an annual survey to establish the baseline conditions of the downtown market. The key metrics to be tracked are: Housing units (total, rentable, occupied, average price per square foot) Office space (total square feet, useable square feet, occupied square feet, average price per square foot) Building ownership (local vs. distant, absentee) Retail space (total square feet, useable square feet, occupied square feet, average price per square foot) Arts & cultural establishments (number of establishments, visitors) With the information obtained in the survey, produce a report card summarizing the data and achievements towards revitalization efforts. Include any projects either fully or partially funded with public funds. 5.4.3. Publicize reports to local and regional realtors, brokers, and developers. Post the report card on the WDMA website with links from the City of Waxahachie’s site and the WCC’s site. 5.5. Encourage the attraction of additional professional services businesses to downtown. In addition to retail, dining, and entertainment establishments, local stakeholders should target additional professional services businesses for downtown locations. 5.5.1. As part of the city’s target sector strategy, encourage small professional services firms to locate in downtown office locations. Professional services such as IT consulting, software development, engineering, architecture, law, and marketing often prefer downtown or urban locations. 5.5.2. The city should analyze the telecommunications infrastructure in the downtown core to ensure it meets the broadband and wireless communications needs of professional services businesses, especially IT services and software companies. TIP Strategies, Inc. Theory Into Practice 34 STRATEGIC PLAN 5.4.2. Waxahachie, TX 5.6. Promote the development of second-story residential options in the downtown square to serve as a catalyst for commercial development. A market-based revitalization strategy should include a focus on leveraging residential development to build greater interest in commercial development. Urban planners and strategists have known for years that “rooftops” (resident populations) become engines that drive a diversified economy, including retail and neighborhood support. Urban dwellers tend to spend more and be more entrepreneurial, involved in community leadership, and committed to a sense of community. For these reasons, further residential development downtown should be a priority. 5.6.1. Review and amend the city comprehensive plan and zoning guidelines to allow for greater densities for downtown residential development. 5.6.2. Consider using public incentives to assist property owners in remodeling older buildings for residential use while also conforming to historic reservation standards. 5.7. Pursue a long-term strategy of securing a downtown anchor tenant(s). Encourage the development of a flagship mixed-use project that includes niche retail, entertainment options, fine dining, and residential units. This project should be designed with the goal of promoting downtown as an after-hours destination. 5.7.2. Promote destination retail among the mix of uses in the flagship anchor project. In order to generate developer interest, such a project may need to be structured as a public/private partnership and include a significant retail anchor. If possible, the project should entail the creative reuse of an existing building rather than new construction. Ideally, the anchor should be a major, exciting draw that cannot necessarily be found in a shopping mall. It could be an entertainment venue, a “special-occasion” restaurant, or a niche retail store. 5.8. Support road improvements, mobility, and circulation throughout Waxahachie, especially to key thoroughfares connecting the downtown to IH-35 and Hwy 287. 5.8.1. Continue working to improve mobility issues along Highway 77, West Main, and other key city thoroughfares. TIP Strategies, Inc. Consideration should be given to establishing a city Mobility Task Force to monitor improvements and educate the general public regarding mobility improvements in Theory Into Practice In 2008, the Kenosha (Wisconsin) Area Business Alliance (KABA) engaged TIP Strategies to assist in the development of an economic development plan: Kenosha First. A challenge facing the City of Kenosha was the shifting of the county’s commercial and residential center of gravity away from the downtown Kenosha, located on the shores of Lake Michigan. STRATEGIC PLAN 5.7.1. Downtown Anchors In response, TIP recommended that KABA encourage existing Kenosha County companies and retailers to establish downtown anchors. In response to the plan, KABA assisted one of its major employers, Jockey International, Inc., in considering a downtown location. In May 2011, Jockey opened the doors to the new 6,000 square foot Jockey Factory Store in downtown Kenosha. KABA also announced its move to the same historic building. In addition, the space will be used to showcase Lemon Street Gallery and to hold Gateway Technical College classes. 35 Waxahachie, TX Waxahachie. 5.8.2. Consider developing Corridor Management (CM) plans for IH-35 and Hwy 77. Corridor management includes measures or practices to preserve or protect right-ofway in combination with managing how development occurs along an existing transportation corridor. (See text box.) 5.8.3. Meet regularly with area businesses in the area to better understand how mobility issues might be affecting their operations. 5.8.4. Continue communicating with various agencies serving Waxahachie’s transportation needs (i.e., North Central Texas Council of Governments, Ellis County, and Texas Department of Transportation, etc.). Many residents and business representatives stated their interest in preserving and expanding the city’s parks, recreational facilities, and natural amenities. Not only is this a strong value held within the community, it also makes economic development sense. Communities across the country clearly recognize the importance of recreation, parks, and preserved natural resources in their ability to make themselves more attractive to talented workers and new businesses. Waxahachie’s commitment to recreational facilities is demonstrated by the investment in the Waxahachie Sports Complex. 5.9.1. Maintain and enhance city parks and recreational facilities. 5.9.2. Continue city-wide beautification efforts. 5.9.3. Explore the long-term feasibility of a Waxahachie Creek “river walk” development concept in the downtown area. corridor safety, operations, and progression; land use types and intensity; development patterns, quality, and design standards; landscaping and corridor aesthetics; revitalization and economic development; and location and placement of utilities. STRATEGIC PLAN 5.9. Enhance amenities and public space. A Corridor Management plan is a long-range planning document that addresses all aspects of transportation, land use, and development along a designated corridor. It is a detailed planning study on roadway design, access, land use, and traffic operations. When prepared by partnerships of local agencies with TxDOT districts, they are strategic documents that can be used to guide city policy and private development decisions such that they are suitable to the ultimate design and function of the TxDOT corridor. CM plans can be used to address: For more information, see Guidelines on Corridor Management and Preservation in Texas published by the Texas Transportation Institute (http://tti.tamu.edu/documents/0-5606-P1.pdf). TIP Strategies, Inc. Theory Into Practice 36 Waxahachie, TX IMPLEMENTATION The following matrix combines all the goals, strategies, and actions in a single table. It also includes potential partners and allies as well as a recommended time horizon for implementation. The purpose of the implementation matrix is to provide a graphic representation when the actions should realistically be implemented and the most appropriate organizations to carry them out. ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing IMPLEMENTATION GOAL 1: HEALTHCARE & HIGHER EDUCATION Pursue higher education and healthcare as long-term target sectors. 1.1. Ensure the long-term success of Baylor Medical Center (BMC). 1.1.1. Assist the relocation of BMC to its new site along IH-35. City 1.1.2. Launch a capital campaign to help finance the new hospital. BMC, WCC, City 1.1.3. Work with the developer of the adjacent office building in BMC, City marketing the site to healthcare service providers in the region. 1.1.4. Assist in identifying adaptive reuse alternatives for the existing City, BMC hospital building. 1.1.5. Support BMC’s competitive position by marketing the hospital BMC, City, WCC internally and externally. 1.2. Establish a new medical overlay zoning district to encourage new healthcare sector development and employment in the area surrounding the new BMC site and other targeted areas of the city. 1.2.1.-1.2.3 Establish a new medical overlay zoning district TIP Strategies, Inc. City Theory Into Practice 37 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing 1.3. Assist BMC in attracting/retaining talent. City, WCC, BMC, NCW, SAGU, WISD City IMPLEMENTATION 1.3.1. Community leaders should be willing to meet with physician candidates BMC is recruiting to help sell the benefits of working and living in Waxahachie. 1.3.2. Promote the development of housing products in Waxahachie that are desired by healthcare providers and staff. 1.4. Work with WISD and post-secondary institutions to expand medical education programs. 1.4.1. Encourage and support WISD in the development of allied health programs in secondary schools to assist in supplying labor force for BMC and other potential healthcare providers. 1.4.2. Support the establishment of an upper division nursing education program or other healthcare-related satellite training facility operated by a four-year higher education institution in Waxahachie. WISD, BMC NCW, BMC, City 1.5. Target medical device companies for recruitment. 1.5.1. See Strategy 4.2. 1.6. Establish a Waxahachie Higher Education Task Force to evaluate and plan for future higher education needs and investments in the community. 1.6.1. The task force should be composed of representatives of the city, local educational institutions (WISD and post-secondary), businesses (small, medium, and large), economic development, workforce development, and other important local institutions. TIP Strategies, Inc. City, WCC, WISD, NCW, SAGU, WSNCT Theory Into Practice 38 Waxahachie, TX RESPONSIBLE PARTIES ACTIONS TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing 1.7. Formalize efforts to attract public four-year degree opportunities to Waxahachie. WHETF WHETF WHETF WHETF WHETF IMPLEMENTATION 1.7.1. Form a subcommittee within the Higher Education Task Force focused on expanding four-year degree programs in the city. 1.7.2. Assemble an information and data packet (hard copy and in electronic format ) on the community that substantiates the need and the business case for locating upper division programs in Waxahachie. 1.7.3. Evaluate financial incentive options to support the expansion of higher education. 1.7.4. Develop a marketing and outreach strategy, including the development of a website. 1.7.5. Continue meeting with representatives of 4-year colleges and universities in the state to make the case for locating in Waxahachie. 1.8. Explore the long-term development of a higher education center in Waxahachie. 1.8.1. Begin evaluating the feasibility of establishing a higher education center in Waxahachie to house new four-year degree programs. WHETF 1.9. Support and strengthen the missions of Navarro College and SAGU. 1.9.1. Engage in cooperative marketing efforts, highlighting Waxahachie’s education, economic development, and community assets. 1.9.2. Continue to encourage joint participation by city and college leadership on relevant boards, commissions, and panels. TIP Strategies, Inc. City, NCW, SAGU, WCC City, NCW, SAGU, WCC Theory Into Practice 39 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 1.10. Support capital and education program expansion at Navarro College and SAGU. City, NCW, WHETF City, NCW City, WCC, NCW, SAGU, WHETF WISD, City, WCC IMPLEMENTATION 1.10.1. Continue working with the Navarro College administration to identify opportunities to increase program and degree offerings at the Waxahachie Campus linked to strategic industries such as advanced manufacturing, business, healthcare, and information technology. 1.10.2. Maintain open lines of communication with Navarro College regarding the city’s financial support for capital projects at the Waxahachie Campus. 1.10.3. Encourage local businesses and nonprofits to financially support Navarro College and SAGU’s scholarship, capital, and program needs. 1.11. Ongoing Support K-12 excellence at WISD. 1.11.1. Highlight the many educational successes of WISD in promotional media. 1.11.2. Encourage greater dialogue between the local business community and WISD. 1.11.3. Foster closer alignment between local economic development activities and WISD programs. TIP Strategies, Inc. City, WCC, WISD, WHETF City, WCC, WISD, WHETF Theory Into Practice 40 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing GOAL 2: LAND DEVELOPMENT Encourage the development of sites and buildings needed to accommodate new investment and employment opportunities. 2.1. Identify and market available sites and buildings for new private development. 2.1.1. Create an inventory of available privately-held sites. 2.2. City City Evaluate the feasibility of establishing a Waxahachie industrial and business park. 2.2.1. Engage the real estate development community to determine the market feasibility of new industrial/commercial site developments and if public sector involvement is needed. 2.2.2. Develop a system for evaluating and scoring the various options. 2.2.3. Work with an experienced developer and/or engineering firm to evaluate a chosen site and develop a master plan. 2.2.4. IMPLEMENTATION 2.1.2. List the available sites on a new city economic development website and cross list them on other regional economic development websites and broker sites. 2.1.3. Market available sites among site selection consultants and commercial real estate brokers in the Metroplex. City Determine the ownership structure for a park. 2.2.5. Develop a business plan for the park, including operations, maintenance, targeted industries/tenants, and pricing structure for lots. 2.2.6. If the city determines the development of a publicly-owned industrial park is not feasible, alternative strategies should be considered to encourage new employment sites. TIP Strategies, Inc. City City City City City City Theory Into Practice 41 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 2.3. Ongoing Strengthen development standards in targeted residential, retail, and commercial zoning districts to ensure a better, more diverse building and housing stock. 2.5. IMPLEMENTATION 2.3.1. Review existing residential, commercial, and retail development standards for certain zoning districts within the city to identify where and City to what extent standards should be strengthened. 2.3.2. Ensure the zoning and design standards along the IH-35 corridor promote higher quality development and restrict substandard City retail and industrial uses. 2.4. Identify and implement plans for long range water, wastewater, telecommunications, electrical, and road improvements needed to serve new and existing business growth. 2.4.1. Evaluate infrastructure availability and quality in future City industrial/tech sites. 2.4.2. Prioritize infrastructure projects based on which development areas and sites are most suitable for expanding businesses and City prospective businesses. Pursue new development opportunities associated with the Mid-Way Regional Airport. 2.5.1. Work with Midlothian on joint marketing initiatives associated with the airport. 2.5.2. Work in conjunction with adjacent property owners & realty brokers to develop and maintain a vacant/available land data base for industrial and commercial development used for shared marketing efforts. 2.5.3. Consider establishing a separate Airport Development Zone or Airport Enterprise Zone to provide incentives to attract incremental aviation-centric and non-aviation traditional businesses to the airport and adjacent area. TIP Strategies, Inc. City City City Theory Into Practice 42 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 2.5.4. Ensure the utilities, infrastructure and building sites both on the airport and adjacent to it are ready for business attraction and city development by a prospective company. Ongoing IMPLEMENTATION TIP Strategies, Inc. Theory Into Practice 43 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PITFs – Plan Implementation Task Forces (proposed) Ongoing GOAL 3: ECONOMIC DEVELOPMENT CAPACITY & TOOLS Expand the capacity and tools of the community to conduct economic development. Create task forces to manage the implementation of the plan. 3.1.1. Create task forces to manage the implementation of the plan. City, WCC 3.1.2. Establish a regular meeting schedule. PITFs PITFs 3.1.3. Utilize an online project management (Basecamp) to facilitate coordination and communication of task force activities. 3.1.4. Periodically update the Waxahachie City Council on the progress of implementation. 3.2. PITFs IMPLEMENTATION 3.1. Establish a city economic development fund. 3.2.1. The City of Waxahachie should create a fund that can be utilized to support marketing and business retention efforts, recruitment incentives, and specific development initiatives. 3.3. Consider the use of other incentive tools. 3.3 Consider other incentive tools. 3.4. Hire additional economic development staff. 3.4.1. The city manager and economic development director should take the lead in interviewing and hiring candidates to fill the economic development specialist position. TIP Strategies, Inc. City City City Theory Into Practice 44 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PITFs – Plan Implementation Task Forces (proposed) 3.5. Ongoing Build community support for a new economic development alliance. 3.5. Build community support for a new economic development alliance. City, WCC, PIT Establish a robust business retention and expansion program. 3.6.1. Build and maintain inventory of existing businesses. City, WCC, WDMA 3.6.2. Utilize a CRM system to manage contacts. City, WCC, WDMA 3.6.3. Administer a regularly scheduled employer survey. City, WCC, WDMA 3.6.4. Conduct business visitations. City, WCC, WDMA 3.6.5. Host business roundtables. City, WCC 3.6.6. Provide networking opportunities for small businesses. City, WCC 3.6.7. Promote Existing Small Business Programs and Services. City, WCC, WDMA 3.6.8. Review Existing Regulations. City 3.6.9. Have an intervention strategy. City, WCC 3.6.10. Report on progress. City, WCC TIP Strategies, Inc. IMPLEMENTATION 3.6. Theory Into Practice 45 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing GOAL 4: MARKETING & IMAGE Raise the profile and enhance the image of Waxahachie. 4.1. Continue efforts to beautify IH-35 gateways to the city. 4.2. City City, WCC City Ensure the zoning and design standards along the IH-35 corridor promote higher quality development and restrict substandard retail and industrial uses. 4.2.1. Encourage developers to assemble parcels along IH-35 rather than develop small scale retail and industrial on smaller lots. 4.2.2. Review zoning along IH-35 to encourage intense retail, commercial, residential, and medical development. 4.2.3. Evaluate and strengthen standards and guidelines on issues such as site layout, lighting, and landscaping. 4.3. City, WCC IMPLEMENTATION 4.1.1. Complete the IH-35/287 interchange landscape and facade beautification project. 4.1.2. Work with TxDOT and state officials to seek funding for reconfiguring the IH35/287 interchange to improve access and connectivity. 4.1.3. Initiate a long-term fundraising campaign to support beautification initiatives at other key interstate gateways. 4.1.4. Ensure the zoning along the IH-35 corridor promotes higher quality development and restricts small-scale retail and industrial uses. City City City Formalize a business recruitment program. 4.3.1. Begin building awareness among decision-makers in target sectors in the Metroplex. City 4.3.2. City Begin building awareness among corporate site selectors. TIP Strategies, Inc. Theory Into Practice 46 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 4.3.3. Actively participate in joint marketing efforts of Dallas Regional City Chamber and other regional economic development organizations. 4.3.4. Establish a prospect management system. 4.4. Create a new city economic development website. 4.4. Create a new city economic development website. 4.5. Influence the image of Waxahachie portrayed on the Web and through social media. 4.6. City City WCC IMPLEMENTATION 4.5.1. Assume ownership of Waxahachie’s entry on Wikipedia. Regularly update the information and data with references. 4.5.2. Local organizations such as the Waxahachie Chamber of Commerce should continue using Facebook and Twitter to update and inform businesses and residents of new announcements, upcoming events, and salient issues. Ongoing WCC, WDMA, others Reach out to former residents and recent graduates. 4.6.1. Establish a marketing campaign urging former residents to “Come Home to Waxahachie.” TIP Strategies, Inc. WCC, WISD, NCW, SAGU Theory Into Practice 47 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; SBDC – Small Business Development Center; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) Ongoing GOAL 5: DOWNTOWN REVITALIZATION Revitalize Waxahachie’s historic downtown. 5.1. Establish small business support resources and services in the downtown square. 5.2. NCW, SBDC, WCC Explore the use of new financial tools to support downtown business growth. 5.2.1. Consider establishing a Revolving Loan Fund (RLF) focused on supporting businesses in the central business district. 5.2.2. Investigate creating a municipal management district or a business improvement district that overlays the downtown core. 5.2.3. Consider reducing, abating, or deferring fees to encourage new businesses to locate downtown. 5.2.4. Pursue any available state and federal grant funds available for facilitating downtown revitalization efforts. 5.3. NCW, SBDC, WCC IMPLEMENTATION 5.1.1. Explore maintaining at least a part-time presence in the downtown square. 5.1.2. Invite outside business experts to give training and mentoring workshops in the downtown square. City City City City Work with Ellis County to redevelop its vacant offices on West Franklin. 5.3.1. Hold a developer forum to solicit ideas from the real estate development community for possible reuse of the offices. City, Ellis County 5.3.2. City City, TIRZ board, Ellis County Continue marketing the offices on the city’s website. 5.3.3. Maintain open lines of communication with the county about purchasing the offices. TIP Strategies, Inc. Theory Into Practice 48 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; SBDC – Small Business Development Center; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 5.4. Regularly track growth and development in the downtown. City, WCC, WDMA City, WCC, WDMA Encourage the attraction of additional professional services businesses to downtown. 5.5.1. Encourage small professional services firms to locate in downtown office locations. 5.5.2. Analyze the telecommunications infrastructure in the downtown core to ensure it meets the broadband and wireless communications needs of professional services businesses, especially IT services and software companies. 5.6. City, WCC, WDMA IMPLEMENTATION 5.4.1. Conduct an annual survey to establish the baseline conditions of the downtown market. 5.4.2. With the information obtained in the survey, produce a report card summarizing the data and achievements towards revitalization efforts. Include any projects either fully or partially funded with public funds. 5.4.3. Publicize reports to local and regional realtors, brokers, and developers. Post the report card on the WDMA website with links from the City of Waxahachie’s site and the WCC’s site. 5.5. Ongoing City City Promote the development of second-story residential options in the downtown square to serve as a catalyst for commercial development.. 5.6.1. Review and amend the city comprehensive plan and zoning guidelines to allow for greater densities for downtown residential development. TIP Strategies, Inc. City Theory Into Practice 49 Waxahachie, TX ACTIONS RESPONSIBLE PARTIES TIMEFRAME 0 to 6 6 to 12 1 to 2 3 to 5 6 to 10 months months years years years City –City of Waxahachie; WCC – Waxahachie Chamber of Commerce; BMC – Baylor Medical Center; WDMA – Waxahachie Downtown Merchants Assn.; CVB – Convention & Visitors Bureau; NCW – Navarro College Waxahachie; SAGU – Southwestern Assemblies of God University, WISD – Waxahachie Independent School District; WSNCT – Workforce Solutions North Central Texas; SBDC – Small Business Development Center; WHETF – Waxahachie Higher Education Task Force (proposed); PIT – Plan Implementation Team (proposed) 5.7. Pursue a long-term strategy of securing a downtown anchor tenant(s). City, WCC, WDMA City, WCC, WDMA IMPLEMENTATION 5.7.1. Encourage the development of a flagship mixed-use project that includes niche retail, entertainment options, fine dining, and residential units. 5.7.2. Promote destination retail among the mix of uses in the flagship anchor project. 5.8. Ongoing Support road improvements to key thoroughfares connecting the downtown to IH-35 and Hwy 287. 5.8.1. Continue working to improve mobility issues along Highway 77, West Main, and other key city thoroughfares. 5.8.2. Consider developing Corridor Management (CM) plans for IH35 and Hwy 77. 5.8.3. Meet regularly with area businesses in the area to better understand how mobility issues might be affecting their operations. 5.8.4. Continue communicating with various agencies serving the Waxahachie’s transportation needs. City City City City 5.9. Enhance amenities and public space. 5.9.1. Maintain and enhance city parks and recreational facilities. City 5.9.2. Continue city-wide beautification efforts. City 5.9.3. Explore the long-term feasibility of a Waxahachie Creek “river walk” development concept in the downtown area. TIP Strategies, Inc. City Theory Into Practice 50 Waxahachie, TX PERFORMANCE MEASURES An important piece of any strategic plan is developing the metrics by which the success of the plan’s implementation will be measured and tracked. While it is difficult to directly connect the success of any economic development plan to local-level macro-economic statistics (e.g., median household income), tracking some economic indicators provides a general understanding of the relative economic vitality of Waxahachie. TIP recommends the City of Waxahachie and its economic development partners use the following indicators to measure program effectiveness and economic growth in the community. SUGGESTED METRIC DATA SOURCE Assessed value of developed land County tax assessor Number of private establishments Number of new businesses formed/attracted in target sectors Total Employment Jobs and investment resulting from new business formation and attraction in target sectors Annual payroll Median earnings for workers Population over 25 with a Bachelor's degree or higher Population over 25 with an Associate's degree TIP Strategies, Inc. Theory Into Practice Business interviews, surveys, media, and business license records U.S. Census Bureau Data Source: Zip Code Business Patterns http://www.census.gov/econ/cbp/index.html Business interviews, surveys, media, and internal records U.S. Census Bureau Data Source: Zip Code Business Patterns http://www.census.gov/econ/cbp/index.html Business interviews, surveys, media, and internal records U.S. Census Bureau Data Source: Zip Code Business Patterns http://www.census.gov/econ/cbp/index.html U.S. Census - American FactFinder http://factfinder2.census.gov U.S. Census - American FactFinder http://factfinder2.census.gov U.S. Census - American FactFinder http://factfinder2.census.gov PERFORMANCE MEASURES Amount of new business investment 51 Waxahachie, TX APPENDIX A: ECONOMIC ASSESSMENT To provide a common framework for our recommendations, TIP began by compiling demographic and economic data on Waxahachie. The purpose is to understand Waxahachie’s relative economic position and highlight its competitive advantages and disadvantages. About the data We based our findings on the following elements: A review of relevant studies, plans, and other material provided by the City of Waxahachie and others; A review of economic and demographic data from primary and secondary sources, including the US Census Bureau, the US Bureau of Labor Statistics, and Economic Modeling Specialists Inc. (EMSI). The data and analysis is organized within five categories: demographics, migration and mobility, income and housing, economy, and workforce. TIP Strategies, Inc. ECONOMIC ASSESSMENT Theory Into Practice 52 Waxahachie, TX Demographics Waxahachie added about 11,000 new residents since 1990, an increase of almost 65 percent over the 20 year period. While the compound annual growth rate from 1990 to 2000 was 1.9 percent, growth accelerated between 2000 and 2010 to a compound annual rate of 3.2 percent. Figure 1. City of Waxahachie population ECONOMIC ASSESSMENT When populations grow this rapidly, it is sometimes difficult to accurately estimate annual changes that occur between 10-year census periods. Between 2000 and 2010, for example, the Census Bureau may have slightly overestimated growth. This creates the appearance that growth stalled between 2009 and 2010, when in fact this may not have been the case. Source: Texas State Data Center; US Census Bureau TIP Strategies, Inc. Theory Into Practice 53 Waxahachie, TX Demographics While the population in Waxahachie grew 65 percent, the total population of Ellis County grew 75 percent between 1990 and 2010. As a result, Waxahachie’s share of the county’s population declined slightly from 21 percent in 1990 to 20 percent in 2010. Figure 2. Ellis County's population outlook Multiple growth scenarios ECONOMIC ASSESSMENT The Texas State Data Center (SDC) prepares multiple scenarios of population growth. In the early 2000s, the Texas SDC released three scenarios for Ellis County based on the overall pace of migration. During the course of the decade, the county's population tracked closest to the high-growth scenario. If Ellis County were to continue tracking the Texas SDC's high-growth scenario, the county's population could reach 250,000 in the next 15 years, and perhaps 375,000 by 2040. Source: U.S. Census Bureau; Moody's Analytics; Texas State Data Center (0.0 no-migration scenario, 0.5 half migration scenario, and 1.0 full migration scenario) TIP Strategies, Inc. Theory Into Practice 54 Waxahachie, TX Demographics Figure 3 shows the population age distribution for the city, county, MSA, state, and nation. Overall, Waxahachie is home to a relatively young population, with 55 percent of the city’s population below the age of 35. This ratio is similar to that of the state and region. Figure 3. Comparative population distribution by age ECONOMIC ASSESSMENT About 57 percent of Waxahachie's population is of working age (20-64). In comparison, the percentage of the population who are working age is 61 percent for the DFW Metroplex and 59 for the state and nation, respectively. This slight deficit can be explained by a couple of factors. The Southwestern Assemblies of God University (SAGU) is located in Waxahachie and maintains an enrollment of just over 2,000 students, many of which live on campus. These students are part of the youth and young adult cohorts. In addition, the seniors cohort (65+) is slightly larger than the region and state, which reflects a growing retiree population in Waxahachie. Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) TIP Strategies, Inc. Theory Into Practice 55 Waxahachie, TX Demographics The age composition of Ellis County is expected to hold relatively steady over the next 20 years. Figure 4. Ellis County population distribution by age ECONOMIC ASSESSMENT The county's outlook is remarkably different from much of the rest of the country where the senior population is increasing rapidly and other age groups are narrowing as a share of the total population. For example, seniors are expected to account for about 14 percent of the population in Ellis County in 2030. In comparison, about 20 percent of the total US population in 2030 will be seniors. The only age group projected to experience a percentage decrease in the county is the experienced working age population age 35-64. However, young adults and youth as a share of the county’s population are projected to remain constant. Such trends will influence the future structure of the county’s labor force, housing stock, educational facilities, demand for public services, etc. Source: US Census Bureau; Moody's Analytics TIP Strategies, Inc. Theory Into Practice 56 Waxahachie, TX Demographics About 29 percent of Waxahachie's residents are enrolled in some form of educational program ranging from preschool to graduate school. This is a higher ratio than the national, state, or DFW averages. Much of the differential results from above-average enrollment in post-secondary education. The presence of Navarro College and SAGU both contribute to this share. Figure 5. Current enrollment status of the population ECONOMIC ASSESSMENT Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) TIP Strategies, Inc. Theory Into Practice 57 Waxahachie, TX Demographics TIP Strategies, Inc. Figure 6. Demographic comparison Homeownership USA Home Owner Renter 67% 33% Dallas-Fort Worth MSA 63% 37% Ellis County 76% 24% City of Waxahachie 61% 39% ECONOMIC ASSESSMENT The rate of homeownership in Waxahachie is significantly lower than in Ellis County as a whole. Whereas 61 percent of residents in the city own a home, over three-quarters of residents in the county are homeowners. Waxahachie’s rate is more closely aligned to the Metroplex average (63 percent). Homeownership rates for the MSA and the city both trail the US average (67 percent). Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) Theory Into Practice 58 Waxahachie, TX Migration & Mobility Figure 7. Ellis County migration patterns Annual changes in county-of-residence showing inbound versus outbound movers ECONOMIC ASSESSMENT The US Internal Revenue Service tracks changes in the number and location of income tax exemptions. This administrative data (a biproduct of filing an annual tax return) can be used to count the gross number of people moving into and out of a county over time. Over the past 20 years in Ellis County, the number of inbound movers has increased faster than the number of outbound movers. In recent years, Ellis County has attracted about 10 new residents for every seven who leave the county. Note: Figures above show total cross-county movement for the 9-county region, including county-to-county movements that are both internal to the region and external. Source: US Internal Revenue Service, county-to-county migration flows; Moody's Analytics TIP Strategies, Inc. Theory Into Practice 59 Waxahachie, TX Migration & Mobility Census data reinforce the pattern shown in the IRS data. Domestic in-migration became the key contributor to Ellis County's population growth in the mid-1990s and this pattern continues today. Even though in-migration peaked in 2006 and subsequently declined, it still continues to be the leading contributor to the county's overall population growth. Figure 8. Components of growth in Ellis County ECONOMIC ASSESSMENT Natural increase (the net of county birth certificates and death certificates) has increased slowly but steadily over the past decade. Both natural increase and foreign in-migration tend to show less volatility over time than does domestic in-migration, which depends much more on business growth cycles and regional economic conditions. Source: U.S. Bureau of the Census; Moody's Analytics TIP Strategies, Inc. Theory Into Practice 60 Waxahachie, TX Migration & Mobility Annual net migration into (out of) Ellis County from the selected counties TX TX +2400 +2200 +2000 +1800 +1600 +1400 +1200 +1000 +800 +600 +400 +200 0 -200 1989 TX 2008 TX 1989 TX 2008 TX 1989 TX 2008 Henderson County 1989 Denton County 2008 Johnson County 1989 Collin County 2008 Navarro County 1989 Tarrant County 2008 Dallas County 2008 inbound (net moving into Ellis County) outbound (net leaving Ellis County) +2400 +2200 +2000 +1800 +1600 +1400 +1200 +1000 +800 +600 +400 +200 0 -200 ECONOMIC ASSESSMENT Migration patterns are also relatively strong with other counties in the region, although the numbers of inbound and outbound moves tend to cancel each other out. Navarro, Collin, Johnson, Denton, and Henderson are among the counties where inbound and outbound movement tends to maintain a degree of parity from year to year. Figure 9. Counties with historically high migration patterns with Ellis County 1989 According to IRS filings, Ellis County draws the vast majority of its new residents from Dallas County. Inmigration from Tarrant County is also positive, but the scale is much less than Dallas County. Source: US Internal Revenue Service, county-to-county migration flows; Moody's Analytics TIP Strategies, Inc. Theory Into Practice 61 Waxahachie, TX Migration & Mobility Many exurban cities like Waxahachie located on the edge of a major metropolitan area tend to become bedroom communities over time, as residents commute into the urban or suburban areas to work. Waxahachie does not yet fit this pattern. Figure 10. Net daily inbound and outbound commuter traffic for Waxahachie The city's net balance of inbound traffic has begun to narrow ECONOMIC ASSESSMENT More people commute into Waxahachie for a job than there are residents who commute out to somewhere else. The advantage of inbound over outbound commuters, however, is small and has narrowed during the recent recession. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009 TIP Strategies, Inc. Theory Into Practice 62 Waxahachie, TX Migration & Mobility Net outbound from Waxahachie mostly to Dallas; most inbound from Ennis inbound (net commuting into the City of Waxahachie) outbound (net commuting out of the City of Waxahachie) 2009 2002 Ennis 2009 Red Oak 2002 2009 Corsicana 2002 2009 Midlothian 2002 2009 2002 Fort Worth 2009 2002 DeSoto 2009 2002 Houston* 2009 2002 Irving 2009 Dallas +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 -900 -1000 -1100 -1200 -1300 -1400 -1500 -1600 -1700 +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 -900 -1000 -1100 -1200 -1300 -1400 -1500 -1600 -1700 ECONOMIC ASSESSMENT The net balance of Waxahachie's inbound commuters does not appear to be coming from the Metroplex. Instead, it is the surrounding counties that provide most of the city's additional labor needs. Waxahachie nets more workers from Ennis and Red Oak than anywhere else in the area. Figure 11. Major commuting patterns between Waxahachie and other cities 2002 Figure 11 displays net inbound and outbound commuting figures between Waxahachie and other cities between 2002 and 2009. Not surprisingly, most residents who commute out of Waxahachie head to work in Dallas, Fort Worth, and Irving. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009 *may include local residents who take cyclical assignments from Houston-based energy companies, including overseas or offshore projects. This is not necessarily a daily commute. TIP Strategies, Inc. Theory Into Practice 63 Waxahachie, TX Migration & Mobility Variances by age and income inbound (net commuting into the City of Waxahachie) outbound (net commuting out of the City of Waxahachie) +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 by annual earnings +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 2009 >$40,000 2002 2009 $15k to $40k 2009 2002 <$15,000 2009 2002 55 or older 2009 2002 2009 30 to 54 2002 by age cohort Under 29 +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 -500 -600 -700 -800 ECONOMIC ASSESSMENT The chart to the rights shows commuting patterns by annual earnings. In most years between 2002 and 2009, Waxahachie experienced a net outflow of higher wage earners. This trend became quite pronounced during the recent recession. Figure 12. Waxahachie's commuting patterns by socio-demographic characteristics 2002 Commuting patterns by age have changed only moderately over the past several years. The chart to the left shows that across all age cohorts Waxahachie enjoys a net inflow of workers. The only variance occurred in 2009 when there was a minimal net outflow of older workers. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009 TIP Strategies, Inc. Theory Into Practice 64 Waxahachie, TX Migration & Mobility inbound (net commuting into City of Waxahachie) outbound (net commuting out from City of Waxahachie) +1700 +1600 +1500 +1400 +1300 +1200 +1100 +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 Prof. Services 2009 Construction 2009 2002 Finance & insurance 2009 2002 Oil & gas 2009 2002 2009 2002 Agriculture 2009 2002 Healthcare 2009 2002 Education services 2009 2002 Hotels, bars, & restnts. 2009 2002 Transport & warehousing 2009 2002 2002 Retail trade 2009 Mfg. +1700 +1600 +1500 +1400 +1300 +1200 +1100 +1000 +900 +800 +700 +600 +500 +400 +300 +200 +100 0 -100 -200 -300 -400 ECONOMIC ASSESSMENT On the other hand, Waxahachie residents who work in finance, construction, and professional services are more likely to commute out of the city to get to a job elsewhere. Figure 13. Net daily commuter flow to/from Waxahachie by economic sector 2002 Net inbound commuting to Waxahachie is concentrated in manufacturing, retail trade, and transportation. In other words, many of the city's jobs in these three sectors are not filled by the city's residents. A surplus of these jobs is being filled by people from outside of Waxahachie's city limits. Source: U.S. Bureau of the Census, Local Employment Dynamics (LED) database, 2002-2009 TIP Strategies, Inc. Theory Into Practice 65 Waxahachie, TX Income & Housing Waxahachie's median income ($46,314) lags the county ($58,809) even though home prices are slightly more expensive. Reflecting the peak years of domestic in-migration to Ellis County, nearly one-quarter of the home in Ellis County and the city of Waxahachie have been built since 2000. Figure 14. Household comparison Household size, income, and housing stock Household profile Persons per HH Median HH income Median home value Affordability ratio* 24% 25% 19% 12% 20% Housing stock Occupied Vacant 88% 12% Age of housing stock Built since 2000 1980-1999 1960-1979 WWII-1959 Built pre-WWII 11% 29% 28% 17% 14% Dallas-Fort Worth MSA Ellis County City of Waxahachie 2.60 $51,425 $185,400 3.6 2.84 $55,459 $143,900 2.6 3.03 $58,809 $134,100 2.3 2.76 $46,314 $127,000 2.7 ████████████████ █████████████████ █████████████ ████████ ██████████████ 20% 25% 19% 13% 24% ██████████████ █████████████████ ████████████ ████████ ████████████████ 90% 10% ███████ ███████████████████ ███████████████████ ████████████ ██████████ 19% 38% 27% 12% 4% 19% 22% 21% 16% 22% █████████████ ███████████████ ██████████████ ███████████ ███████████████ 93% 7% █████████████ ██████████████████████████ ██████████████████ ████████ ██ 24% 41% 19% 9% 7% 27% 25% 22% 13% 13% ███████████████████ ECONOMIC ASSESSMENT HH income distrib. <$25,000 $25,000-$50,000 $50,000-$75,000 $75,000-$100,000 >$100,000 USA █████████████████ ███████████████ █████████ ████████ 92% 8% █████████████████ ████████████████████████████ █████████████ ██████ ████ 23% 29% 18% 18% 11% ████████████████ ████████████████████ ████████████ ████████████ ████████ *Note: The affordability ratio is the median home value divided by the median household income. The "ratio" equates the home prices to raw earning potential (expressed in years of gross income needed to pay for the home). The lower the number, the more affordable the housing. Median household income for the 9-county region is an average of the counties weighted by the number of households. Median home prices in each county are weighted by the number of occupied housing units to estimate the 9-county median. Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) TIP Strategies, Inc. Theory Into Practice 66 Waxahachie, TX Income & Housing Waxahachie's income tends to follow a slightly lower distribution curve than the US overall. The city does, however, show a marginal "spike" of middle income households where earnings tend to be between $50,000 and $75,000. Figure 15. Distribution of household income Share of total households by income level US average City of Waxahachie 25% 20% 15% ECONOMIC ASSESSMENT 10% 5% 0% Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) TIP Strategies, Inc. Theory Into Practice 67 Waxahachie, TX Income & Housing Waxahachie's affordability index (2.7) is slightly above the averages for the county, the MSA, and the state. While home prices are not out of line with the DFW average, incomes do tend to be lower, so this pushes the affordability index up. Still, when compared to the US average, Waxahachie's housing is quite affordable. TIP Strategies, Inc. Figure 16. Housing affordability ratios Waxahachie's housing is more affordable than the rest of the nation Median home value $300,000 $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 USA Dallas-Fort Worth Metroplex Ratios > 3.6 are less affordable than the US average City of Waxahachie Texas ECONOMIC ASSESSMENT The easy rule-of-thumb for measuring housing affordability is the ratio of median home price to median household income. This ratio is essentially the number of years a typical household would need to pay for a median-priced housing unit if, in theory, 100 percent of income were applied to the principal until it was paid off. Therefore, the lower the ratio, the more affordable the housing. Ellis County Ratios < 3.6 are more affordable than the US average $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Median household income Note: Bubble sizes reflect relative affordability: Waxahachie (2.7), Ellis County (2.3), Dallas-Fort Worth MSA (2.6), Texas average (2.5), US average (3.6) Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) Theory Into Practice 68 Waxahachie, TX Economy Unemployment rates nationwide rose to record highs during the Great Recession. Figure 17. Average annual unemployment rate, 1990-2011 (%) The current jobless rate in Texas is less than the national average. This is also true for the Metroplex as well as Ellis County and the City of Waxahachie. ▬ ● Latest 2011 unemployment rate relative to the historical 20-year range = unemployment rate range since January 1990 = latest unemployment rate 11% 10% 9% ECONOMIC ASSESSMENT 8% 7% 6% 5% 4% 3% 2% 1% 0% US Texas Dallas-Fort Worth MSA Ellis County City of Waxahachie Note: Because seasonal adjustment is not available for all jurisdictions, none of the rates shown (including comparables) are seasonally adjusted. Source: U.S. Bureau of Labor Statistics, CPS (US rate) and LAUS (state & county rates) TIP Strategies, Inc. Theory Into Practice 69 Waxahachie, TX Economy Until as recently as 2007, Waxahachie had consistently run a higher rate of unemployment than the Metroplex average. Since 2007, the city's jobless rate has dovetailed remarkably close to the DFW average. Figure 18. Unemployment rates compared City has converged with the regional employment cycle 12-month moving average of the seasonally unadjusted jobless rates DFW MSA Waxahachie 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 ECONOMIC ASSESSMENT 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Source: U.S. Bureau of Labor Statistics, LAUS (state & county rates) TIP Strategies, Inc. Theory Into Practice 70 Waxahachie, TX Economy The unemployment rolls in Waxahachie increased sharply in 2009. At year-end 2008, fewer than 800 of the city's residents were claiming unemployment, but six months later, this number peaked near 1,200 -- about a 50 percent increase in the overall level. Unemployment trends of Waxahachie residents over the past three years Monthly unemployment numbers are not seasonally adjusted, so they can only be compared to the same month in the previous year Year Month 2011 Apr Mar Feb Jan 2010 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan 2009 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan 2008 Dec Nov Oct Sep Aug Jul Jun May Number Unemployed 1,026 1,035 1,077 1,137 1,158 1,131 1,145 1,099 1,121 1,119 1,173 1,052 1,114 1,118 1,085 1,124 1,044 1,102 1,096 1,106 1,132 1,165 1,110 939 839 903 893 890 776 714 670 668 699 687 690 614 ◄ worse Rolling 12-month Net Change -88 -83 █ ███████████ ██ ████ ██████ ███████████ ███████████████████████████ █████████████████████ ███████████████████ ███████████████████████ ██████████████████████████ ██████████████████████████████████████ ██████████████████████████████████████████ ███████████████████████████████████████████ ███████████████████████████████████████████ ███████████████████████████████████████████████ ██████████████████████████████████████████ ████████████████████████████████ ████████████████████████████████ ████████████████████████████████ █████████████████████████████████ ███████████████████████████ ███████████████████████ ██████████████████ ███████████████ ████████████ ████████████ ███████████ ███████████ ████████████ -8 +13 +114 +29 +49 -7 -11 -46 +63 +113 +275 +215 +192 +234 +268 +388 +426 +438 +433 +478 +420 +325 +322 +328 +330 +275 +230 +183 +159 +120 +128 +114 +113 +123 better ► ████████ ████████ ECONOMIC ASSESSMENT As of April 2011, just over 1,000 of the city's residents still claim unemployment -- an improvement from the peak level, but still a long way from recovery. Figure 19. The unemployment rolls █ ████ Note: LAUS survey data reflect local household employment, i.e., the job status of employed residents. This is not the same as the local job base. Source: U.S. Bureau of Labor Statistics, LAUS program TIP Strategies, Inc. Theory Into Practice 71 Waxahachie, TX Economy Waxahachie's job base peaked in 2008 at just over 22,000 and has not yet regained that level. However, the recessionary dip was very mild. Figure 20. The job base in the City of Waxahachie* Job growth stalled in 2009 and 2010 but didn't fall significantly ECONOMIC ASSESSMENT *Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 72 Waxahachie, TX Economy Waxahachie's job base currently totals just under 22,000, with the largest share of workers (15 percent) working in manufacturing. Figure 21. Job base by industry sector in Waxahachie, 2010 Waxahachie defined as the sum of zip codes 75165, 75167, & 75168 Retail, healthcare, and government (which includes the county courthouse and local public schools) are the next largest sectors. ECONOMIC ASSESSMENT Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 73 Waxahachie, TX Economy This chart compares the region's job growth in the most recent 4-year period (2007 through 2010) with the previous four years (2003 through 2006). Figure 22. Job growth by industry sector in Waxahachie since 2003 Waxahachie defined as the sum of zip codes 75165, 75167, & 75168 Manufacturing was the only sector to lose jobs in both periods, shrinking by about 800 jobs. ECONOMIC ASSESSMENT Many of the other sectors actually gained jobs during both periods. Transportation/warehousing and healthcare were the sectors adding the most jobs during this period. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 74 Waxahachie, TX Demographics Oil, gas, & mining Manufacturing Transportation & warehousing Agriculture, forestry, & fishing ▲ above 3.0 2.75 2.50 ABOVE A few industries, including professional services, arts & recreation, and information and media, are sparsely represented in the city, according to LQ analysis. Retail trade Restaurants, bars, & hotels Personal & other services Construction Property sales & leasing Finance & insurance Administrative services Government (incl. public ed.) Information & media Arts & recreation 3.00 ECONOMIC ASSESSMENT Oil & gas, manufacturing, transportation, and agriculture are the sectors in the region with above average concentration ratios (i.e., greater than 1.25). Professional services US average for each industry = 1.00 regional strength > 1.25 regional weakness < 0.75 Healthcare & social assistance Location quotient analysis Educational services (excl. public ed.) Figure 23. Waxahachie industry sector strengths relative to the US Wholesale trade Location quotients show a local area's strengths and weaknesses in various industries relative to national employment patterns. For example, an LQ of 2.00 means that for every person in the nation employed in that sector, two people are employed locally. 2.25 2.00 1.75 1.50 AVERAGE 1.25 1.00 0.75 BELOW 0.50 0.25 0.00 *Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 75 Waxahachie, TX Workforce Figure 24. Educational attainment Highest level of education achieved by the population age 25 or older no high school diploma high school diploma or GED some college but less than a 4-year degree bachelor's degree or higher USA Texas 15% 25% 28% 29% 28% DallasFort Worth MSA 18% 21% 19% City of Waxahachie 18% 30% 21% 19% 24% 26% 28% Ellis County ECONOMIC ASSESSMENT This figure shows educational attainment levels for residents age 25 or older. Of primary concern for Waxahachie is the comparative share of adult residents holding at least a bachelor’s degree (21 percent). For the Dallas-Fort Worth MSA overall, 30 percent have earned at least a fouryear degree. In fact, college attainment levels in the Metroplex exceed the national average and this skilled labor pool is one of the draws for employers locating in the region. 31% 31% 29% 31% 28% Source: U.S. Census Bureau (American Community Survey, 2005-2009 average) TIP Strategies, Inc. Theory Into Practice 76 Waxahachie, TX Workforce This figure shows the number of jobs per occupational group in the city for 2010. Rather than the industries people are employed in (e.g., manufacturing), occupations are the types of positions people are performing (e.g., production). Figure 25. 2010 job base by occupational group in Waxahachie* ECONOMIC ASSESSMENT In Waxahachie, sales occupations are the most prevalent type of job. These occupations are tied closely to the city’s strong retail sector. Office and administrative support are the second most common type of occupation. The number three ranking occupational group in the city during 2010 was Management, which can be misleading. This group includes selfemployed farmers and ranchers, while a separate "farming" category includes mostly agricultural support workers. The management category also includes self-employed realtors and construction managers. Over 2,100 jobs were tied to production (manufacturing) in 2010. TIP Strategies, Inc. *Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary Theory Into Practice 77 Waxahachie, TX Workforce Figure 26. Occupational job trends in Waxahachie*, 2007 through 2010 A wide gap in the types of jobs gained and lost… 2007 2008 2009 Overall Net Change 2010 Management Food preparation & serving Business & financial operations Sales Healthcare (technical) Protective service Healthcare (support) Personal care & service Property maintenance Legal Education, training, & library Installation, maintenance, & repair Life, physical, & social science Computer & mathematical science Arts, design, & media Military Farming, fishing, & forestry Community & social services Architecture & engineering Construction & extraction Transportation & material moving Office & administrative support Production +300 +200 +100 +0 -100 -200 -300 ECONOMIC ASSESSMENT +279 +153 +141 +99 +95 +64 +48 +39 +38 +35 +33 +22 +22 +20 +18 +14 +12 +8 -9 -23 -34 -50 -327 -400 Job performance in Waxahachie between 2007 and 2010 has differed across occupational groups. Blue-collar jobs in production, transportation, and construction have been among those suffering losses. However, other occupations have grown steadily during this same period. Jobs in management, business services, sales, food services, and healthcare experienced decent growth during the period. *Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 78 Waxahachie, TX Workforce Healthcare (technical) Education, training, & library Legal Architecture & engineering Life, physical, & social science Computer & mathematical science Management Construction & extraction Protective service Installation, maintenance, & repair Community & social services Production Business & financial operations Transportation & material moving Office & administrative support Military Sales Arts, design, & media Personal care & service Property maintenance $85 $80 $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Healthcare (support) Circle represents the county median; line represents the national range between the 10th and 90th percentiles Farming, fishing, & forestry However, across all occupational groups, Waxahachie is at the low end of the DFW region’s wage range. County median wage presented in the context of the national wage range ECONOMIC ASSESSMENT At the other end of the spectrum, support workers in agriculture, food service, property maintenance, and healthcare support earn median wages that skirt just above the minimum wage. Figure 27. Median hourly wage rate by occupational group Food preparation & serving Skilled workers in Waxahachie draw higher salaries than other occupational groups. Healthcare professionals, educators, legal professionals, and engineers command the city's highest median wages. *Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 79 Waxahachie, TX Workforce Figure 28. Occupational group concentrations in Waxahachie Production Transportation & material moving Management* Food preparation & serving Installation, maintenance, & repair Sales Legal Education, training, & library Construction & extraction Protective service Healthcare (support) Office & administrative support Arts, design, & media Healthcare (technical) Personal care & service Business & financial operations Architecture & engineering Computers & mathematics Life & physical sciences ECONOMIC ASSESSMENT Military Highly trained occupational groups such as computer technicians, engineers, and scientists are only sparsely represented within the local workforce. Property maintenance US average for each industry = 1.00 Regional strength > 1.25 Regional weakness < 0.75 Community & social services Location quotient analysis Farming, fishing, & forestry Production and transportation workers maintain the highest location quotients of any occupational groups. For a city of Waxahachie's size, these types of jobs are disproportionately located here. 3.00 2.75 2.50 ABOVE 2.25 2.00 1.75 1.50 AVERAGE 1.25 1.00 0.75 BELOW 0.50 0.25 0.00 *Note: Managers includes self-employed real estate agents and farmers & ranchers as well as construction managers and general managers. **Note: Waxahachie is defined here as the sum of zip codes 75165, 75167, and 75168. Source: EMSI Complete Employment - 2nd Quarter 2011 preliminary TIP Strategies, Inc. Theory Into Practice 80 Waxahachie, TX APPENDIX B: TARGET INDUSTRIES TARGET SECTORS The selection of target sectors is traditionally bound to an assessment of only a few determinant factors, such as access to an available workforce, industrial sites, and incentives. Our target industry recommendations are not based solely on these factors, but also on conversations with local business leaders to better understand potential opportunities and challenges that might not be readily identifiable through secondary data sources alone. The TIP team also brings to bear its understanding of broader macroeconomic and social trends, such as consumption patterns/consumer spending, emerging markets/international trade, and demographic shifts/aging workforce to better understand long-term recruitment and development prospects. TIP also strongly takes into consideration how the potential targets might fit within the overall strategic framework of the economic development plan, as well as how each might affect Waxahachie’s attractiveness to existing and future residents. Finally, TIP assessed the local development potential of possible industry targets within the context of the greater DFW Metroplex. In sum, TIP identified target sectors for the county, using a three-pronged approach: quantitative, qualitative, and strategic. TIP examined both traditional and nontraditional target opportunities for Waxahachie. Traditional targets represent the types of industries that have historically been marketed to by economic development organizations. These might typically include traditional manufacturing sectors as well as other related industrial and/or transportation activities. Traditional targets often represent the first tier of economic opportunity. While a number of such economic activities take place in Waxahachie, nationally the number of traditional industrial investment prospects is limited. This is not to suggest there will be no manufacturing, transportation, and distribution opportunities for the county. Indeed, several high-quality traditional employers have located in Ellis County in recent years. However, much of the regional employment growth in recent years has occurred in non-industrial sectors, especially in professional services and healthcare. As a result, the TIP team considered a number of other non-traditional targets to assist in diversifying the city’s economy in higher growth sectors. TIP Strategies, Inc. Theory Into Practice 81 Waxahachie, TX Industry Higher Education DFW job growth 2010-20 +7,321 Selected Standard Occupational Codes (SOC) Education administrators, postsecondary | 11-9003 | Postsecondary teachers | 25-1099 | Public higher education is not considered a traditional industry sector. EMSI classifies public education within local government. Therefore, to better define the sector, we have used the US Department of Labor's Standard Occupational Codes (SOC) for postsecondary administrators and teachers. Navarro College and Southwestern Assemblies of God University are the two post-secondary institutions in Waxahachie. Trends to watch Education, along with healthcare, fared relatively well during the Great Recession Job Growth and subsequent recovery. In times of high unemployment, many people unable to find work often choose to obtain additional education in order to improve their DFW Texas career prospects once the economy recovers. Indeed, enrollment at Navarro U.S. College Waxahachie has been increasing in recent years. TARGET SECTORS Description Outlook (2010-2020) 28% 26% 13% Sector Overview The higher education center concept is growing in popularity nationally and in Texas. A higher education center may be a multi-institutional entity or a single university/college enterprise. Centers are often located on community college campuses. They may include agreements in which a host institution brings to the area or to its campus programs offered by another institution. Centers also may include colocation of two- and four-year institutions or multiple four-year institutions sharing a site. In recent years, highe education centers have been establihed in McKinney, Round Rock, and Midlothian. DFW Jobs DFW Annual Openings DFW Location Quotient 26,438 1,530 0.72 DFW Median Wage/Hr US Median Wage/Hr $39.36 $37.41 Staffing Patterns Gender Male Female Pct. of jobs 39% 61% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 82 Waxahachie, TX Industry Local prospects Challenges Higher Education ■■■■□ Site considerations [1] Competition from other communities vying for four-year campuses. [2] Declining state funding for higher education institutions in Texas. [3] Allocating local public funding sources to support new higher education facilities in Waxahachie. TIP Strategies, Inc. Theory Into Practice TARGET SECTORS Opportunities [1] The area's growing population make it attractive to four-year institutions to locate upper division degree programs. [2] Partnering with Baylor to attract new upper division education and training programs in healthcare. [3] Expanding the number of local residents with post-secondary education degrees and experience makes the city more attractive to other industries that employ higher skilled workers. Access to skilled labor Access to markets/customers Availability of land/modern facilities Regional R&D activities Regional teaching hospitals R&D/investment tax incentives Top Regional Employers University Of Texas Arlington University Of Texas University Of Texas At Dallas Southern Methodist University Southw estern Baptist Sem inary 83 Waxahachie, TX Industry Healthcare DFW job growth 2010-20 +93,340 Selected NAICS codes Ambulatory Health Care Services | 621 | Hospitals | 622 | Nursing & Residential Care Facilities | 623 | While the US economy is expected to remain sluggish over the next several years, one sector -- healthcare -- will continue to plod forward at a rapid clip. Over the next decade, the hospital-related activities will add nearly 600,000 jobs over the next decade (and these jobs form just a fraction of the much broader healthcare industries which also includes physician offices, senior care centers, and health insurance). Much of this growth will occur naturally through demand forces as American baby boomers begin to cross the threshold into their senior years. Trends to watch Activities associated with hospitals provided nearly 296,000 DFW jobs at yearJob Growth Outlook (2010-2020) end 2010. Moreover, this figure is projected to grow by one-third through 2010. 33% Another plus: hospital-related activities require a wide range of skillsets, offering DFW 21% job opportunities that meet the diverse capacities of most local workforces. In the Texas U.S. 20% region, over three-quarters of workers in this cluster tends are women. This ratio helps to counterbalance the more male-leaning workforce structures of the other Sector Overview targets. DFW Jobs 295,912 DFW Establishments 12,982 Waxahachie should find opportunities to build upon the relocation of Baylor DFW Location Quotient 0.84 Medical Center to IH-35. A new state-of-the-art hospital located on a high profile location in a growing metropolitan area should translate into greater healthcare DFW Avg Earnings/Worker $63,327 spending and employment opportunities. US Avg Earnings/Worker $57,429 TARGET SECTORS Description Staffing Patterns Gender Male Female Occupation Registered nurses Nursing aides Home health aides Physicians & surgeons Lic. practical & voc. nurses Pct. of jobs 23% 77% Pct. of jobs 12% 8% 6% 5% 4% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 84 Waxahachie, TX Industry Local prospects Challenges Healthcare ■■■■□ Site considerations [1] Identifying adaptive reuse alternatives for the existing hospital building. [2] Competition from other hospitals in the region. [3] Attracting complementary businesses and activities on and near the site, including high-quality retail, hospitality, and residential development. TARGET SECTORS Opportunities [1] An aging local and regional population translates to inevitable growth in the healthcare sector. [2] Hospital-related activities are relatively well insulated from economic cycles. During the recent recession, healthcare and education were among the few sectors of the economy to continue growing. [3] Healthcare provides jobs across a wide range of skill levels. [4] New healthcare employment is likely to increase demand for healthcare education and training programs. Access to skilled labor Access to markets/customers Availability of land/modern facilities Regional R&D activities Regional teaching hospitals R&D/investment tax incentives Top Regional Employers Psych Link Surgical & Outpatient Svc Baylor Sam m ons Cancer Ctr Parkland Health & Hospital Sys Medical City Children's Hospital Regional Multipliers Jobs Multiplier Earnings Multiplier Sales Multiplier 2.46 1.87 2.35 Industry networking Health Insurance Association of Am erica Am er Assn of Hom es & Serv for the Aging Am erican Healthcare Association Advanced Medical Technology Assn Nat'l Assn for Hom e Care & Hospice Advanced Medical Technology Assn Am erican Hospital Association TIP Strategies, Inc. Theory Into Practice 85 Waxahachie, TX Industry Medical Devices & Supplies DFW job growth 2010-20 +1,451 NAICS codes to emphasize E le c t ro m e dic a l a nd E le c t ro t he ra pe ut ic A ppa ra t us M a nuf a c t uring 3 3 4 5 10 A na lyt ic a l La b Ins t rum e nt M a nuf a c t uring 3 3 4 5 16 Irra dia t io n A ppa ra t us M a nuf a c t uring 3 3 4 5 17 M e dic a l E quipm e nt & S upplie s 3391 M e dic a l, D e nt a l, a nd H o s pit a l E quipm e nt a nd S upplie s M e rc ha nt Who le s a le rs 423450 D rugs a nd D ruggis t s ' S undrie s M e rc ha nt Who le s a le rs Description The primary components of this sector include medical devices, (companies that develop, manufacture, and market medical apparatus, equipment, instruments, devices, and supplies) and research. Trends to watch Employment in the sector is forecast to grow by 7.9 percent over the next five Job Growth Outlook (2010-2020) years. Between 2015 and 2020, employment in the sector is expected to grow by DFW 20% six percent. The graying of the population and growth in worldwide per capita Texas 13% incomes and per capita healthcare expenditures are forecast to provide a U.S. 10% platform for stable and steady growth for medical devices in the foreseeable future. Sector Overview 4 2 4 2 10 DFW Jobs DFW Establishments DFW Location Quotient DFW Avg Earnings/Worker US Avg Earnings/Worker TARGET SECTORS The US medical device industry accounts for nearly half the world’s medical device market, and leading US manufacturers often generate roughly half of their total sales abroad. In recent years, export growth has benefited from the development of increasingly sophisticated medical devices and an increasing emphasis by foreign governments to improve the quality of their healthcare systems. 7,422 265 0.76 $76,391 $91,401 DFW Staffing Patterns During the last couple decades, Texas has emerged as a major force in medical Gender devices, in large part due to state initiatives to grow the sector, university-led Male research and the strength of the Texas Medical Center. Between 2005 and 2010, Female Occupation the medical device sector attracted over $530 million in venture capital Dental laboratory techs investment. Team assemblers Ophthalmic laboratory First-line supervisors Industrial engineers Pct. of jobs 54% 46% Pct. of jobs 8% 7% 4% 3% 2% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 86 Waxahachie, TX Industry Local prospects Challenges Medical Devices & Supplies ■■■■□ Site considerations [1] A site consideration in this sector is proximity to medical school and teaching hospital as well as healthcare and research centers. TARGET SECTORS Opportunities [1] Presence of major healthcare providers locally and within the Metroplex [2] Central location along the rapidly growing I-35 megaregion with a population of approximately 11 million [3] Availability of regional labor pool [4] Access to transportation [5] Greenfield sites Access to skilled labor R&D/investment tax incentives Availability of land/modern facilities Regional R&D activities Water & wastewater capacity Top Regional Employers Flex Medical Abbott Laboratories Chem search Corp Nch Corp Med Assets Inc Regional Multipliers Jobs Multiplier Earnings Multiplier Sales Multiplier 2.80 2.15 2.09 Industry networking Advanced Medical Technology Association Medical Device Manufacturers Association Assn. of Electical & Med Im aging Equip Mfg Orthopedic Surgical Mfgs Association Health Industry Distributors Association TIP Strategies, Inc. Theory Into Practice 87 Waxahachie, TX Industry Business & Data Services DFW job growth 2010-20 +42,349 Description This target sector includes shared service centers, corporate and technical services, data storage and processing, as well as more basic business support services, such as contract telephone call center operations. This sector also includes firms that provide data management and support services to companies, hospitals, governments, and individuals. Business Process Outsourcing (BPO) & Shared Services | 5611 | 5612 | 5613 | 5614 | Data Centers & Data Managem ent | 5182 | Shared service centers have proven to be effective models to reduce costs and Job Growth Outlook (2010-2020) increase productivity for organizations managing large-scale operations. 24% Organizations in both the private and public sector have embraced this model to DFW Texas 22% improve their efficiency. The functions most commonly consolidated in shared U.S. 20% service centers are finance, human resources, information technology, and supply chain / procurement. Sales / marketing support, real estate / facilities, and Sector Overview legal are becoming more common. DFW Jobs 184,418 DFW Establishments 5,675 The emergence of broadband internet service has drastically increased demand DFW Location Quotient 1.52 for data centers. Due to the cost of purchasing, maintaining, and operating large computer servers to store and process data, corporations and individuals alike DFW Avg Earnings/Worker $49,778 have moved en masse toward storing information “in the cloud.” As a result, data US Avg Earnings/Worker $40,373 centers will be the focus of site selection for the foreseeable future as annual DFW Staffing Patterns demand for services will continue to increase at double digit rates. Data center operators are now looking to smaller communities for geographic diversification Gender Pct. of jobs as well as security and risk mitigation. Male 50% Female 50% Occupation Pct. of jobs Customer service reps 7% Laborers and movers 7% Office clerks 4% Bill and account collectors 3% Managers, all others 3% TARGET SECTORS Trends to watch NAICS codes Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 88 Waxahachie, TX Industry Local prospects Challenges Business & Data Services ■■□□□ Site considerations Opportunities [1] Certain types of data services will be a major job generator in the decade ahead. [2] Waxahachie's location relative to DFW, competitive utility rates and water infrastructure, and abundant greenfield sites may present opportunties to attract companies in this cluster. Skilled labor force Affordable, reliable electricity Buildings with large floor plates Buildings with under-floor utilities Regional R&D activities Disaster-related insurance costs Competitive tax environment TARGET SECTORS [1] Corporate search criteria may include stringent requirements for utility costs and reliability, location security, and building construction. [2] The increasingly interconnected nature of the global economy has increased the competitive playing field for sites to host data service operations. Companies that once limited their site selection to US soil, now often consider sites in Costa Rica, India, and the Philippines, to name a few. Even law firms now use foreign BPOs for some of their legal services. Top Regional Employers Affiliated Com puter Svc Inc Dell Services Flexjet Cornerstone Staffing C N Staffing Regional Multipliers Jobs Multiplier Earnings Multiplier Sales Multiplier 3.43 2.24 2.37 Industry networking Am erican Council for Trade in Services Data Interchange Standards Association Inform ation Technology Industry Council International Trade Data Users National Association of Personnel Services Telecom m unications Industry Association US Coalition of Services Industries TIP Strategies, Inc. Theory Into Practice 89 Waxahachie, TX Industry Professional services DFW job growth 2010-20 +66,412 NAICS codes Professional services firms are expected to add 2.4 million jobs over the next decade. This alone tells us something about where the US economy is headed. Professional services firms hire educated workers and pay well. For every 20 jobs that the US adds over the next decade, at least 1 will be in a firm providing professional services, like accounting, law, engineering, or computer services. Trends to watch Professional services firms can be large multinational operations (like PricewaterhouseCoopers, for example) but more often they are small and medium-sized (SME) operations that provide administrative or technical services to the broader local economy. In a region like the Metroplex, this might legal or computer services or a wide range of other activities. TARGET SECTORS Description Business Services, including Law , Accounting, & Advertising | 5411 | 5412 | 5418 | Construction Services, including Engineering, Architecture, & Design | 5413 | 5414 | Com puter Services | 5415 | Research & Technical Consulting Services | 5416 | 5417 | 5419 | Job Growth Outlook (2010-2020) DFW Texas U.S. 22% 20% 19% Sector Overview Professional services firms spring up on their own to service local industries and the local population. Many legal activities need to be located in or near the CBD to be close to courts and other government buildings. For all other types of professional services, there is less need to stay centrally located since employees and customers may be more likely to be located in middle-class or affluent suburbs. Attracting these professional services activities can often become a quality of life issue. DFW Jobs DFW Establishments DFW Location Quotient 309,236 22,668 1.13 DFW Avg Earnings/Worker US Avg Earnings/Worker $78,299 $75,585 DFW Staffing Patterns Gender Male Female Occupation Management analysts Photographers Accountants and auditors Lawyers Managers, all others Pct. of jobs 57% 43% Pct. of jobs 7% 6% 6% 5% 3% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 90 Waxahachie, TX Industry Local prospects Challenges Professional services ■■□□□ Site considerations [1] A lack of modern, Class A office space may deter potential small and medium-sized enterprises (SMEs) from locating in Waxahachie. [2] Waxahachie may be too far away from the central areas of Dallas or Fort Worth to be a viable option for many firms. Access to skilled labor Airport accessibility & flight options Access to markets/customers Class A office options Competitive tax environment TARGET SECTORS Opportunities [1] Professional services firms will be among the big job creators of Top Regional Employers the coming decade. These firms tend to hire educated workers and Lockheed Martin Corp often pay their employees at rates above the overall median. Hp Enterprise Svc Alcon Surgical Inc [2] Waxahachie may be in a position to attract small professional Ernst & Young service firm owners who do not need to be located in central Dallas Alcon Laboratories Inc for their business and who prefer a more relaxed environment to live and work. Regional Multipliers [3] The community should target former residents of Waxahachie Jobs Multiplier 2.43 who own professional service firms or who have professional Earnings Multiplier 1.82 careers. Sales Multiplier 2.33 Industry networking Am er Inst of Certified Public Accountants Am erican Bar Association Am erican Consulting Engineers Assn International Advertising Association Am erican Institute of Architects National Society of Professional Engineers TIP Strategies, Inc. Theory Into Practice 91 Waxahachie, TX Industry Logistics & distribution DFW job growth 2010-20 +26,068 NAICS codes to emphasize Wholesale Trade | 42 | Support Activities for Rail & Road Transportation | 4882 | 4884 | Freight Transportation & Arrangem ent | 4841 | 4885 | Other Transportation Support Acivities | 4889 | Warehousing & Storage | 493 | Truck Transportation | 484 | Logistics and supply chain establishments provide materials-handling services and manage the flow of goods as they move from supplier to manufacturer to retailer and final consumer. These companies use information technology to manage inventory control and costs. For some firms, especially chain retailers, this is done in-house. For others, third-party logistics, or 3PL, provide many of these services, including assembling and repackaging materials, consolidating orders and shipments, physically delivering goods to customers, processing returned items, and handling e-commerce fulfillment operations. 3PLs typically serve a number of clients from a single facility. Trends to watch The days of manually moving bulk cargo manually are gone. Cranes and Job Growth Outlook (2010-2020) hydraulic equipment move heavy cargo today, and the truckers and delivery 10% persons who transport it from one location to the next are increasingly as likely to DFW Texas 11% be women as they are men. For every 4 persons employed in this industry, 1 is U.S. 9% now a woman and there is no reason to believe this shift toward more gender balance in the industry will not continue. Sector Overview For an industry that pays reasonably well, the skill requirements for employment are still basic. Truckers and delivery persons who make up the bulk of the workforce can participate with less training and technical preparation than those who choose a manufacturing path. The logistics/distribution sector employs a large labor force nationwide. More than 7.3 million work in this industry. Over the coming decade, projections indicate that this job base will expand by more than 8%, adding nearly 600,000 jobs. In the US, a good deal of the action will be centered on the Gulf Coast due to the expansion of the Panama Canal, which will expand trade oportunties between the region and the Pacific Rim. It's also important to note that the scale of distribution centers is growing. IKEA, for example, manages its distribution in the western half of the US from a 1.7 million square foot facility it built in Kern County, California, a few years ago. DFW Jobs DFW Establishments DFW Location Quotient 271,014 16,574 1.32 DFW Avg Earnings/Worker US Avg Earnings/Worker $75,612 $67,119 TARGET SECTORS Description DFW Staffing Patterns Gender Male Female Occupation Truck drivers Sales reps, non-tech & Laborers and movers Sales reps, tech & scie First-line supervisors Pct. of jobs 71% 29% Pct. of jobs 14% 12% 8% 4% 4% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 92 Waxahachie, TX Industry Local prospects Challenges Logistics & distribution ■■■■□ Site considerations [1] The recent recession left a glut of distribution space in the US. As of mid-2010, the national brokerage Grubb & Ellis estimated the industrial vacancy rate above 10% for the fifth consecutive quarter. [2] The industry's exemplary efficiency standards means that large capital investments may sometimes yield relatively few jobs. [3] Intense competition in the southern Metroplex for Logisitcs & Distribution companies. Proximity to population centers Quality of transport infrastructure Large tracts of industrial-zoned land Intermodal highway & rail options Availability of semi-skilled labor Affordable labor rates Competitive tax environment TARGET SECTORS Opportunities [1] Labor force availability is a plus. Top Regional Employers [2] Intermodal transportation provides the infrastructure for the Quexco Inc logistics/distribution industry to function, and Waxahachie has Stevens Transport Republic National Distributing ground options (highway & rail) well covered. Ben E Keith Foods [3] Ample supplies of industrial-zoned land with good transportation Atco Rubber Products Inc connections are necessary. Many logistics facilities today exceed 1 million square feet, with sites generating high volumes of ingress Regional Multipliers and egress. Jobs Multiplier 2.92 [4] A steady, uninterrupted supply of affordable electricity is needed Earnings Multiplier 1.99 to support large climate-controlled facilities with IT networks Sales Multiplier 2.16 operating 24/7. [5] Food and beverage processing (also a target) shares strong Industry networking overlaps with the logistics/distribution sector. Some beverage firms, Am erican Short Line & Regional RR Assn Am erican Trucking Association for example, manage their own distribution activities through Association of Am erican Railroads franchises. Meanwhile, a number of third-party logistics providers Industrial Truck Association specialize in food, grocery, and restaurant distribution. Interm odal Association of North Am erica International Assn of Plastics Distributors Int'l Assn of Refrigerated Warehouses Int'l Warehouse Logistics Assn Material Handling Industry of Am erica TIP Strategies, Inc. Theory Into Practice 93 Waxahachie, TX Industry Food Processing DFW job growth 2010-20 +1,452 NAICS codes to emphasize Food Manufacturing | 311 | Beverage Manufacturing | 3121 | Food and beverage manufacturers process essentially two things: plants and animals, or in more industry-specific terms, crops and livestock. There are big names in the industry like Unilever, Kraft, and ADM. The industry is served by firms specializing in food distribution (more on this in the logistics profile). Less known are the specialty foods that process, manufacture, distribute, market, and/or sell niche market foodstuffs for consumption. Their products include candy and confections, canned and frozen foods, dairy products, edible oils, fish and seafood, grains, meat products, sauces and condiments, snack foods, and sugar and other sweeteners. Trends to watch It is no secret that manufacturing has been shedding jobs in fits and starts for decades. Only a few niches, including certain high-tech products and food and beverage manufacturing, manage to eke out job growth. This trend will continue in the decade ahead as food processing firms in the US increase their payrolls by as much as 50,000 jobs. In an industry that employs 1.7 million, this is not much of a gain (only about 3% over 10 years), but any gain at all is better than persistent manufacturing job losses. DFW Texas U.S. Like other manufacturing industries, food processing employs more men than women by about a 2-to-1 ratio. The gender balance is not expected to change significantly over the next decade, nor is the skill composition in the industry. In fact, the persistence of the skill composition (see graph) may be the reason that food processing manages to eke out consistent job gains. The nature of the work requires either labor intensive human activity (e.g., meatpacking) or was fully automated long ago (e.g., bottling). DFW Avg Earnings/Worker US Avg Earnings/Worker The real changes at work involve consumer tastes. The homogenous marketplace of monolithic labels of the 1950s has yielded shelf space to specialty brands and ethnic foods. Add to this an increased consumption of prepackaged foods and an obsession with our pets, including their diets. TARGET SECTORS Description Job Growth Outlook (2010-2020) 6% 7% 1% Sector Overview DFW Jobs DFW Establishments DFW Location Quotient 23,251 464 0.64 $57,806 $52,309 DFW Staffing Patterns Gender Male Female Occupation Packaging mach operators Food batchmakers Meat packers Bakers Laborers and movers Pct. of jobs 62% 38% Pct. of jobs 9% 8% 5% 5% 4% Sourse: EMSI TIP Strategies, Inc. Theory Into Practice 94 Waxahachie, TX Industry Local prospects Food Processing ■■■□□ Site considerations Challenges [1] Volatile global food prices could impact production of certain types of foods. TIP Strategies, Inc. Theory Into Practice TARGET SECTORS Opportunities [1] Food and beverage processing leverages existing, regional agricultural strengths for more value-added products and processes. [2] Foods and beverages are considered nondurable manufactured goods. In the past, this made them less suitable for export, but the greater use of refrigerated storage has made exporting possible. The growth of the highly segmented specialty food market could increase the opportunities for export-oriented food production. [3] Livestock processing carries environmental externalities. This means that some producers may prefer to locate production away from major population centers, though still within easy one-day trucking. [4] Pet food is a growing segment of the US market and is often overlooked as a subtarget within the food processing sector. Access to skilled labor Access to markets/customers Regional R&D activities Quality of transport infrastructure Competitive utility prices Water & wastewater capacity Top Regional Employers Frito-lay North Am erica Inc Dr Pepper Snapple Group Inc Don Miguel Mexican Foods Inc Coca-cola Bottling Co Dean Foods Co Regional Multipliers Jobs Multiplier Earnings Multiplier Sales Multiplier 7.79 4.83 2.10 Industry networking Am erican Frozen Food Institute Food Products Association Grocery Manufacturers of Am erica Institute of Food Technologies Nat'l Assn for Specialty Food Trade Pet Food Institute Snack Food Association 95 Waxahachie, TX APPENDIX C: CONSIDERATIONS FOR FUTURE BUSINESS AND INDUSTRIAL PARKS Effective planning for a future business and industrial park can take on many dimensions and can move in many directions. A key element of the planning process is for the developer to establish a vision of how the park should look when fully built out. It is also important to incorporate a financial and investment plan to evaluate and estimate the capital required to develop the business and industrial park over time, and the potential return on investment that will accrue to the developers. The most important phase in developing a new business and industrial park is the “concept” phase – it is also the least expensive phase. Creating ideas, exchanging strategies, evaluating market conditions, and establishing targets for a new business and industrial park tenants is a “pencil on paper” exercise and can be changed fairly easily. Once a developer begins installing infrastructure, changes become very expensive and time consuming. Large business and industrial parks are typically planned in phases. This strategy minimizes initial infrastructure investment and optimizes use of the balance of the property. Mixed-use business and industrial parks become somewhat more problematic. A mixture of high-end office buildings, warehouse and distribution facilities, and manufacturing plants creates the opportunity for diversified implementation, but also spreads the amount of capital required to prepare and implement development for the park. Additionally, mixed-use parks, by their very nature, create mixed traffic control requirements (i.e., pedestrian, automotive, and truck traffic are all present within the park at the same time). Truck entrances and automotive entrances should be separated to the extent possible, and pedestrian traffic should be planned carefully. Traffic control lights should be used at intersections where automotive, truck, and pedestrian traffic are mixed. Infrastructure for a new business and industrial park should be planned carefully to provide for the broad range of demands that may be placed on the infrastructure systems by different types of tenants. The chart on the following page presents generic requirements of selected infrastructure and other requirements by type of business or industry. It should be noted that these requirements are estimated averages, and are not intended to be absolute for any specific type of business or industry. The requirements could vary by as much as 100 percent, or more, within the same business classifications based on individual project requirements. TIP Strategies, Inc. Theory Into Practice 96 SITE CONSIDERATIONS Large business and industrial parks, i.e. those over 500 acres, require highly flexible planning in the beginning. The first investor in a new park has significant impact on the initial planning phase and can change development strategies quickly. Developers are always anxious to get the first tenant in place, primarily because nothing breeds success like success. The fact is, however, many developers compromise initial plans in order to accommodate the first tenant. Hence, flexible planning is a key to future success. Waxahachie, TX Selected Site and Building Requirements TIP Strategies, Inc. Theory Into Practice 97 Waxahachie, TX In addition to the generic requirements, the following infrastructure needs should also be incorporated into considerations for a new business and industrial park: Land Use – Multi-use parks should be subdivided on paper to identify probable uses for office, commercial, warehouse/distribution, manufacturing and any other anticipated types of tenants. If zoning is required for the park, each of the sub-zones should be appropriately identified, and at least preliminary zoning actions should be taken. Zoning should be structured so it could be changed or implemented within a 60-day window. It is typical to preserve highway frontage or highly visible areas within the park area for office/commercial use, and to preserve areas with less visibility for manufacturing and warehouse/distribution uses. Transportation Access – The primary route to the park should be an improved, limited access highway, preferably at least two lanes wide with center turn lanes and acceleration/deceleration lanes at the park entrances. Close proximity to a four-lane, limited access highway or interstate is more desirable. If the park is targeting heavy to medium manufacturing, rail access is highly desirable. Planning for rail spurs as well as receiving and departure infrastructure is critically important for rail served sites. Employee traffic and truck traffic should be separated to the extent possible with each having its own entrance and exit points for the business and industrial park. Water – Water capacity to the park should be planned to service the highest potential end users. Water supply should take into consideration potable water requirements, process water requirements and fire protection requirements. Many parks provide all of these through the same system while others provide each independently, varying based on local conditions and resources. Most business and industrial parks provide an elevated or above-ground water storage facility to provide emergency water and sustained water flows for specific timeframes. Water service should be planned very carefully since it alone can become a major limiting or eliminating factor for many types of projects. Sewer – Sewer requirements for a multi-use park can vary significantly. If the park will house heavy industrial and manufacturing facilities, it is probable that the process waste stream will have characteristics not acceptable to most sanitary sewer treatment plants. This condition may dictate the presence or use of an industrial wastewater pre-treatment plant at the industrial park. To the extent there may be multiple industrial complexes generating process waste, it may be feasible to provide a multi-user industrial wastewater pre-treatment facility. The volumes of discharge and the characteristics of the discharge will be driving and determining factors for this strategy. Permitting for industrial waste discharge may also be a limiting or determining factor. This condition reinforces the need to have detailed planning and flexibility in development and implementation of a new business and industrial park. Electrical – Planning for electrical requirements may become extensive for multi-use parks. Most heavy industrial plants, and many other types of operations, will require independent dual electric feeds for their facilities. The heavy industrial plants will request the highest voltage service possible to be brought to the park, typically to a substation located on the property. High demand, end-users of electrical service will not only seek redundancy, but may also request hardened facilities, back-up transformers, and automatic switching systems for conversion from one generating source to another. Planning and evaluation related to local conditions and the ability/cost of providing these services is best done very early in the concept development stage. Capital investment and cost/benefit ratio for utility companies typically becomes the limiting or enabling factor for these services. TIP Strategies, Inc. Theory Into Practice 98 SITE CONSIDERATIONS Waxahachie, TX Natural Gas – Availability of natural gas for a multi-use business and industrial park is a given. The quantities and pressures available for delivery to the park should be fully explored and defined, as well as any infrastructure that may be required to bring service to the park. Telecommunications – Fiber availability is a given at all locations today. The quality of the connectivity and the bandwidth available may vary; however, most companies today are seeking the highest level service with state-of-the-art systems. The specific needs of each project will dictated the type of service required. From a planning perspective, the developer should identify the highest quality service providers to bring service to the park. Many companies prefer to find at least two telecommunications service providers available at new locations. SITE CONSIDERATIONS TIP Strategies, Inc. Theory Into Practice 99