Sierra Vista Outlook - Sierra Vista Business

Transcription

COCHISE COLLEGE
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Table of Contents
1
REVIEW OF THE NATIONAL, STATE,
AND LOCAL ECONOMY
by Dr. Robert Carreira, Director,
Center for Economic Research
3
SYNERGY OF PROGRESS
by Charles P. Potucek,
Sierra Vista City Manager
5
CITY OF SIERRA VISTA
7
ECONOMIC DEVELOPMENT
13
EDUCATION
17
HEALTHCARE
18
POPULATION & DEMOGRAPHICS
20
EMPLOYMENT
24
COMMERCE
28
REAL ESTATE & CONSTRUCTION
32
BANKING & FINANCIAL SERVICES
33
MEXICO
36
FORT HUACHUCA
37
AGRICULTURE
39
TOURISM
42
RENEWABLE ENERGY
43
COMMUNITY RESOURCES
44
ABOUT THE CER
C OV E R P H OTO S
SIERRA VISTA HERALD/BISBEE DAILY REVIEW
C O C H I S E C O L L E G E P R I N T S E RV I C E S
KEITH RINGEY, COORDINATOR
Sierra
DESIGN & PUBLISHING
www.sierrapub.com
SIERRA VISTA ECONOMIC OUTLOOK • 2015
Review of the National, State, and Local Economy
Photo: City of Sierra Vista
National
During the recessionary years of 2008 and 2009, the national economy lost 8.7
million jobs. From January 2010 through January 2015, 11.2 million jobs were added. In
2014, 3.1 million jobs were created (up from 2.4 million in 2013). The national
unemployment rate in 2014 was 6.2 percent (down from 7.4 percent in 2013). The
seasonally adjusted monthly unemployment rate in January 2015 was 5.7 percent, down
from 6.6 percent in January 2014.
The nation’s Gross Domestic Product (the broadest measure of economic activity
adding
up the value of all goods and services produced in the economy) was up 2.4
Dr. Robert Carreira
percent in 2014—the fifth consecutive year of growth since the end of the recession in
Director
Center for Economic
2009. GDP growth in 2014 was at its highest level since 2010.
Research
Building permits for new single-family homes nationwide were up 1.5 percent in 2014
Cochise College
(following increases of 23.9 and 19.7 percent in 2012 and 2013, respectively). Permits in
2014 were up for the third consecutive year following declines in five of six years. Despite
recent increases, the number of new home permits in 2014 was down 63 percent from the 2005 peak.
According to the National Association of Realtors, existing single-family home sales by realtors
nationwide were down 3.1 percent in 2014 (following a 9 percent jump in 2012 and an 8.6 percent increase
in 2013). In 2014, the median home price nationwide was $208,500 (up 5.8 percent from 2013 and the highest
level since 2007).
Arizona
Arizona gained 63,300 jobs in 2014 for job growth of 2.5 percent. Job creation was led by growth in the
private sector, which added 60,100 jobs (2.8 percent). Government grew by 3,200 jobs (0.8 percent). In 2014,
the statewide unemployment rate was 7 percent (down from 8 percent in 2013). The seasonally adjusted
monthly rate in December 2014 was 6.7 percent (down from 7.6 percent in December the year prior).
Arizona’s GDP grew 1.1 percent in 2013, following much stronger growth of 2.6 percent in 2011 and 3
percent in 2012. In 2013, Arizona’s GDP growth was 36th in the nation. Inflation-adjusted retail sales
statewide were up 7.3 percent in 2013 and 3 percent in the first 11 months of 2014. Arizona’s restaurant and
bar sales were up 2.2 percent in 2013 and 6.4 percent from January through November 2014. The state’s
accommodation sales (hotel, motel, RV park, and other temporary lodging stays of less than 30 days) were
up 0.4 percent in 2013 and 9.6 percent in the first 11 months of 2014.
Building permits for new single-family homes statewide were down 5.2 percent in 2014 (on the heels of
a 57.1 percent jump in 2012 and an 11.2 percent increase in 2013, following six consecutive years of decline).
The number of new home permits in 2014 remained 78.6 percent below the 2005 peak.
Home sales by realtors in Arizona were down 10.9 percent in 2014 (the third consecutive year of falling
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sales with declines of 10.6 and 5.4 percent in 2012 and 2013, respectively). Sales in 2014 were 27 percent below
their 2005 peak. The median home price statewide was $194,000 in the fourth quarter of 2014 (up 5 percent
from the fourth quarter of 2013).
Cochise County
Cochise County lost 600 jobs in 2014 for annual job growth of -1.7 percent. The government sector shed
325 jobs (-2.7 percent) while the private sector lost 275 jobs (-1.2 percent). Cochise County’s annual
unemployment rate in 2014 was 8.3 percent (down from 8.8 percent in 2013). The seasonally adjusted
monthly rate in December 2014 was 8 percent (down from 8.9 percent in December 2013).
Cochise County’s GDP grew by 0.1 and 2.9 percent, respectively, in 2008 and 2009—the years the state
and national economies went into the Great Recession. In 2010, the county saw GDP growth of 2.4 percent.
Cochise County’s economy slipped into recession in 2011, with a drop in GDP of 0.7 percent. The
countywide recession continued through 2012 and 2013 with GDP declines of 3.9 and 1.3 percent,
respectively.
Retail sales countywide were up 1.5 percent in 2013, but were down 2.3 percent in the first 11 months of
2014. Cochise County’s restaurant and bar sales were down 0.5 percent in 2013, but were up 1.4 percent from
January through November 2014. Countywide accommodation sales were down 12.2 percent in 2013 and 0.5
percent in the first 11 months of 2014.
New residential construction in Cochise County was up 29 percent in 2014—the first year of growth
following eight consecutive years of decline. There were 209 new home permits issued countywide in 2014
(up from a record low of 162 in 2013 [with records back to 1990]). Despite the jump in 2014, the number of
new home permits for the year was down more than 80 percent from the housing boom peak back in 2005.
There were 1,409 homes sold by realtors in Cochise County in 2014 (down 1.3 percent from 1,428 in
2013—the highest level since 2007). Sales were up in four of six years from 2009 through 2014, following
three consecutive years of double-digit declines. Home sales volume in 2014 was down by nearly a third from
the 2005 peak.
The median home price in Cochise County in 2014 was $118,000 (down 2.3 percent from 2013). The
median price in 2014 was down nearly 40 percent from the 2007 peak and was well below levels seen a decade
prior in 2004, prior to the housing market boom. In 2014, foreclosures accounted for 25.5 percent of home
sales in Cochise County (down from 29.3 percent in 2013).
Sierra Vista
Sierra Vista saw an estimated loss of 230 jobs in 2014 for job growth of -1.3 percent. Sierra Vista’s annual
unemployment rate in 2014 was 7.5 percent (down from 8 percent in 2013). In December 2014, the city’s
seasonally adjusted monthly unemployment rate was 7.2 percent, down from 8.3 percent in
December 2013.
Sierra Vista’s retail sales were up 3.5 percent in 2013, but down 2.1 percent
in the first 11 months of 2014. The city’s restaurant and bar sales were down
5.3 percent in 2013 and 0.1 percent from January through November 2014.
Citywide
Citywide accommodation sales were down 28.3 percent in 2013, but up
accommodation sales
16.5 percent in the first 11 months of 2014.
were down 28.3 percent
In the Sierra Vista area there were 922 homes sold in 2014 (down 0.6
percent from 2013). The median home price in the Sierra Vista area in
in 2013, but up 12.5
2014 was $133,500 (down 8.3 percent from 2013). In 2014, foreclosures
percent in the first 11
accounted for 25.9 percent of home sales in the Sierra Vista area (down
months of 2014.
from 27.8 percent in 2013).
Synergy of Progress
Since Sierra Vista City Council adopted its ‘Plan for Prosperity’ economic framework
nearly two years ago, there has been notable progress toward economic improvements
surrounding our key focus areas: eds, meds, feds. With the opening of Canyon Vista
Medical Center, planned re-use of the old hospital by Cochise College, addition of several
new restaurants, and continued investment by existing businesses into expansions and
improvements, the Sierra Vista community is taking steps to move forward even during
this challenging economic recovery period.
In April 2015, the new state-of-the-art Canyon Vista Medical Center will open to the
community and region. Replacing the former Sierra Vista Regional Health Center, this
new facility will feature a Level 3 Trauma Center, expanded cardiology capabilities, two
Charles P. Potucek
helipads, an in-patient acute behavioral health unit, advanced radiology services, and a
City Manager
variety of other improvements. Corporate parent RegionalCare Hospital Partners has
City of Sierra Vista
committed over $100 million to improving healthcare infrastructure for Sierra Vista and
Fort Huachuca. The expanded capacity will meet current and future growth both in the
community and on the installation. The hospital has added or is actively recruiting specialists in orthopedics,
sports medicine, surgery, cardiology, oncology, pediatrics, and adult behavioral health. All efforts are being
made to integrate them with the Fort Huachuca medical community, as well, since the facility serves as the
fort’s hospital. Adjacent to the new hospital is the first of two planned medical office buildings to help house
the many specialty physicians to support Canyon Vista Medical Center. With the expansion of medical
services through the partnership with RegionalCare, the city is well positioned to attract businesses, families,
retirees, cross-border patients, and others who will contribute to the local economy.
Through the generous donation by Legacy Foundation of Southeast Arizona (formerly Sierra Vista
Regional Health Center Foundation) the 93,000-square-foot former hospital will be transformed into an
education center for Cochise College’s healthcare students, training future nurses, medical and certified
nursing assistants, respiratory therapists, EMTs, and paramedics. The facility may also eventually house some
of the college’s community-outreach programs and the large kitchen is being considered for use in the
college’s culinary arts program. This exciting re-use positions the community beautifully for future business
growth connected to higher education. In addition, its central location helps give promise to eventually
achieving the number one priority identified by residents in the 2012 ‘Dream Your City’ visioning process:
establishing a walkable city center. The city council has already selected vacant state land adjacent Veterans
Memorial Park for that center, which is just a block from the future addition to the Cochise College campus.
Often overlooked as an economic development piece, the city launched a community branding effort in
early 2015 with the help of North Star Destination Strategies—the industry leader in community branding
and known throughout the United States for its ability to generate positive community growth. The brand,
which will be developed from hundreds of data points collected by North Star, reflecting both internal and
external perceptions, will aid in economic development by communicating Sierra Vista’s strengths to
potential businesses, visitors, and residents. And knowing how critical the brand is to our forward
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momentum, the city is accelerating the brand development process, compressing a usual 12-month process
into just eight. Once completed, the brand will be incorporated into marketing materials and citywide
communications—and we’ll be encouraging Sierra Vista businesses, the Chamber of Commerce, and other
organizations to incorporate the brand identity into their own marketing.
Supporting Fort Huachuca is still very much a priority of the city and community. Since 2014, the city
has partnered with Cochise County and the community-based Fort Huachuca 50 to fund a lobbyist to help
develop and implement a strategy to elevate the level of awareness of the fort and its assets to key decision
makers in Congress and the Pentagon. In early 2015, the Sierra Vista mayor led a small delegation of
representatives from this partnership to Washington, D.C., to meet with members and key staff of the 114th
Congress. With U.S. Senator John McCain assuming chairmanship of the Senate Armed Services Committee,
and our own U.S. Congresswoman Martha McSally and fellow U.S. Congressmen from Arizona, Trent Franks
and Ruben Gallego, serving on the House Armed Services Committee, the community is well positioned for
a receptive ear at the federal level. The city took the lead in responding to the Army’s 2014 ‘Supplemental
Programmatic Environmental Assessment’ of potential cuts on the installation due to sequestration, pulling
together key community groups and ensuring everyone is speaking with one voice. That collaboration has
developed into a group of community leaders who stand at the ready to add their voices to additional planned
efforts to elevate the reputation of Fort Huachuca in coming months and years.
Community partnerships and collaboration are a central theme of much of the progress of the past year,
and the City of Sierra Vista has been pleased to be in a leadership role in moving our community forward.
But it is only together, with one voice and a shared vision that we will see the fruits of our collective labor
result in a thriving Sierra Vista economy.
it is only
together, with one
voice and a shared
vision that we will see the
fruits of our collective
labor result in a thriving
Sierra Vista
economy.
Sierra Vista, the largest city in Cochise County, is at an elevation of 4,623 feet located along State Routes
90 and 92 approximately 75 miles southeast of Tucson, 190 miles southeast of Phoenix, 30 miles south of
Interstate 10, and 35 miles north of the Mexican border. The founding of the city arose from the
establishment of Fort Huachuca. Early ranchers, homesteaders, and business entrepreneurs settled and built
around the army encampment in the late 1800s and Sierra Vista was eventually incorporated in 1956. In 1971,
Fort Huachuca was annexed into the city. In addition to Fort Huachuca, the Sierra Vista area is home to
several other government agencies including U.S. Forest Service, U.S. Bureau of Land Management, and U.S.
Customs and Border Protection. Nearby cities include tourist destinations Tombstone and Bisbee.
Sierra Vista is the retail hub of Cochise County, serving a commercial market of more than 110,000
people. Large retail chains include Wal-Mart, Target, Kmart, Sears, Hobby Lobby, Dillard’s, Marshall’s, Ross,
Home Depot, Lowe’s, Staples, PetSmart, and Best Buy, serving customers from across Cochise County,
neighboring Santa Cruz County, and across the U.S. border with Mexico. The city is home to The Mall at Sierra
Vista—a one-story enclosed regional shopping mall. In recent years, the city’s restaurant industry has
expanded considerably and now includes such large chains as Applebee’s, Buffalo Wild Wings, Chili’s, IHOP,
Olive Garden, Outback Steakhouse, Panda Express, and Texas Roadhouse. A boom in commercial construction
from 2005 through 2011 added several new hotels, restaurants, large retailers including a new Wal-Mart
Supercenter, office complexes, and other businesses. In 2014, construction began on the new Canyon Vista
Medical Center, scheduled to open in April 2015 replacing the city’s former Sierra Vista Regional Health
Center. Since 2011, the area’s economy has been challenged by cuts in federal spending associated with Fort
Huachuca and the winding down of wars in Afghanistan and Iraq. Economic developers have focused efforts
toward diversification of the economy to lessen reliance on the defense industry, to include commercial
application of defense-related specialties such as unmanned aerial systems and cyber-security.
COST OF LIVING
SIERRA VISTADOUGLAS
MSA*
TUCSON
PHOENIX
BULLHEAD
FLAGSTAFF
CITY
LAKE
HAVASU
PRESCOTTPRESCOTT
VALLEY
YUMA
2010
97.8
96.4
100.6
114.8
N/A
111.7
103.6
101.1
2011
99.6
95.0
96.5
113.3
N/A
108.9
103.7
103.5
2012
102.5
95.5
96.8
111.6
91.9
104.3
98.6
105.2
2013
98.0
95.6
96.0
113.3
93.4
103.1
98.1
104.2
2014
97.3
97.0
96.2
117.9
93.8
100.4
97.9
101.3
N/A = data not available. *The Sierra Vista-Douglas MSA is a statistical area designation for all of Cochise County. Source:
Council for Community and Economic Research (C2ER), Cost of Living Index.
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COST OF LIVING INDEX
The Cost of Living Index, published by the Council for Community and Economic
Research, compares costs of approximately 300 participating areas in all 50 states.
The average for all participating places nationwide equals 100 and each participant’s
index is read as a percentage of the average for all places.
SIERRA VISTA/DOUGLAS MSA AREA COST OF LIVING
COMPOSITE
INDEX
GROCERY
ITEMS
HOUSING
97.8
96.5
99.4
2010
UTILITIES
TRANS
PORTATION
HEALTH
CARE
MISC.
GOODS &
SERVICES
97.4
104.0
95.9
95.5
2011
99.6
95.6
99.6
92.0
108.8
98.0
100.9
2012
102.5
97.8
102.8
103.4
106.6
99.5
102.7
2013
98.0
91.3
95.4
99.2
101.1
97.4
101.4
2014
97.3
94.7
93.6
102.8
102.6
96.5
98.1
Note: The Sierra Vista-Douglas MSA is a statistical area designation for all of Cochise County. Source: Council
for Community and Economic Research (C2ER), Cost of Living Index.
SIERRA VISTA TRANSACTION PRIVILEGE
(SALES) TAX RATES
COUNTY
CITY OF
AND STATE SIERRA VISTA
CATEGORY
TOTAL
Privilege Tax
6.10%
1.75%
7.85%
Use Tax – Utilities
6.10%
2.00%
8.10%
Use Tax
5.60%
1.75%
7.35%
Restaurant & Bar
6.10%
2.60%
8.70%
Transient Lodging/Hotel/Motel
6.05%
5.50%
11.55%
Utilities/Telecommunications
6.10%
2.00%
8.10%
0.03355
$0.02
$0.05355
Rental of Real Property
——
1.00%
1.00%
Construction Contracting
6.10%
2.45%
8.55%
Jet Fuel (per gal.)
Note: Rates as of February 1, 2015. Source: Arizona Department of Revenue
and Cochise College Center for Economic Research.
SIERRA VISTA PROPERTY TAX RATES
PER $100 ASSESSED VALUE (2014)
DISTRICT
PRIMARY SECONDARY TOTAL
0.1136
Class 2:
Class 3:
Class 4:
Class 5:
Class 6:
Class 7:
Class 8:
Class 9:
0.1136
Buena Elementary School District
2.8673
——
2.8673
Buena High School District
1.7774
——
1.7774
Cochise County Gen. Government*
2.6276
——
2.6276
——
0.1451
0.1451
Library*
Flood Control*
Cochise College*
Fire District Assistance Tax*
——
0.2597
0.2597
2.0329
——
2.0329
——
0.1000
0.1000
School District Assistance Tax**
0.5089
——
0.5089
TOTAL
9.9277
0.5048
10.4325
Note: Rates are established the third Monday in August. *Rate applies to all
property in Cochise County. **Rate applies to all property in Arizona.
Source: Cochise County Treasurer and Cochise College Center for
Economic Research.
PROPERTY TAX ASSESSMENT RATIOS
Class 1:
——
Mines, mining claim property, and standing timber; local
telecommunications, utilities, pipelines, and oil and gas producing; and
commercial and industrial real property not included in other classes
(18.5 percent of cash value in 2015, scheduled to decline to 18 percent in
2016)
Agricultural real property, golf courses, and vacant land (16 percent of
cash value, scheduled to decline to 15 percent in 2016)
Owner-occupied residential property (10 percent of cash value)
Leased or rented residential property (10 percent of cash value)
Railroads, private car companies, and airline flight property (21 percent
of cash value)
Noncommercial historic property, foreign trade zones, military reuse,
environmental technology, and environmental remediation property (5
percent of cash value)
Improvements to commercial historic property (1 percent of cash value
for up to 10 years)
Improvements to historic residential rental property (1 percent of cash
value for up to 10 years)
Possessor interests (1 percent of cash value for up to 10 years)
Economic Development
Photo: RegionalCare Hospital Partners
Local Organizations
CITY OF SIERRA VISTA ECONOMIC DEVELOPMENT
In 2013, the City of Sierra Vista established an Economic Development Department and began
implementation of its new economic development framework approved by the city council, referred to as
Plan for Prosperity. With city council direction, the department has been tasked with taking a leadership role
in helping coordinate efforts of economic development community partners to improve overall services for
current and future businesses. The department serves as the city’s point of contact for current and
prospective businesses considering expansion or relocation to Sierra Vista. As of early 2015, the department
was in the process of developing a formal business retention and expansion program to help existing
businesses find ways to grow. In 2015, the city funded a community branding initiative, retaining services of
a nationally-recognized firm. The new brand will be central to updating marketing and outreach materials
designed to highlight advantages of doing business in Sierra Vista. The department serves as the city’s contact
with the Arizona Commerce Authority in evaluating potential leads, and develops strategies designed to
target businesses that fit primarily within the foundational industries identified in the Plan for Prosperity: eds,
meds and feds (education, medical, and federal government). The department also carries out the city’s
leadership role in the community partnership between Sierra Vista, Cochise County, and Fort Huachuca 50
to actively advocate for expanded missions at Fort Huachuca. For more information, visit
www.SierraVistaAZ.gov.
SIERRA VISTA ECONOMIC DEVELOPMENT FOUNDATION
The Sierra Vista Economic Development Foundation (SVEDF) has been incorporated as a nonprofit
501(c)(3) corporation since 1985. Its mission and purpose is to increase the economic strength of Sierra Vista
and to diversify the region's economy through the provision of resources to existing businesses and
recruitment of top-performing industries to the greater Sierra Vista area. SVEDF promotes community
development through media exposure, to include serving as a spokesperson on economic operations and
strategies at conferences throughout the region, and providing commentary on a variety of economic topics
to various media sources; local business development, including a business enrichment program to help
entrepreneurs deal with obstacles to success; provision of co-space for business startups with onsite
counseling and financial assistance; recruitment of new companies to the Sierra Vista area, to include
assistance in site selection, site certification, deal negotiation, and customized demographic reports; business
support and resource referral, including personal counseling sessions on organizational issues, revenue
reductions, and expansion plans; and the establishment and maintenance of partnerships with other
agencies, the City of Sierra Vista, Cochise County, and the State of Arizona. For more information, visit
www.svedf.org.
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SIERRA VISTA INDUSTRIAL DEVELOPMENT AUTHORITY
Sierra Vista IDA is empowered to issue industrial revenue bonds to provide funds for financing or
refinancing of the costs of acquisition, construction, improvement, rehabilitation, or equipping for qualified
projects. Its interests include promotion of economic and industrial development, inducement of
manufacturing, and development of low-income housing. In 1985, IDA formed the Sierra Vista Economic
Development Foundation to promote industrial and commercial growth, and IDA became the principal
nonprofit organization that provides financial assistance and leadership to stimulate development of
qualified projects. In 2004, IDA established the Sierra Housing Resource Partner, Inc., a 501(c)(3) set up to
develop low-income housing. In 2014, SHRP developed Crossing Point Villas, a 60 unit Low Income Housing
Tax Credit community; and Crossing Point Homes, a 20 unit first-time home-buyer subdivision. Crossing
Point Homes offers moderately priced two-story, three- and four-bedroom homes with down payment
assistance for those who qualify. For more information, email frank@fwpc.net.
SIERRA VISTA AREA CHAMBER OF COMMERCE
With a membership of more than 600, the Sierra Vista Area Chamber is the largest business organization
in Cochise County. Its mission is to promote business and provide leadership for the improvement of the
community. The chamber’s goal is to support the local business community and to partner with other area
agencies to help create a strong local economy, in particular the long term viability of Fort Huachuca. To this
end, the chamber offers a wide variety of resources and marketing tools to help local businesses grow. Its main
focus is on business retention and providing opportunities for area business owners and managers to network
and promote their goods and services. The nonprofit organization, which is a self-funded 501(c)(6), is also
active in the legislative arena. It acts as a voice on behalf of the business community and works to keep its
members informed on local, state, and national issues. For more information, visit sierravistachamber.org.
SIERRA VISTA METROPOLITAN PLANNING ORGANIZATION
SVMPO, established in 2013, is the designated transportation planning organization for Sierra Vista and
the surrounding urbanized area of Cochise County. SVMPO plans and coordinates surface transportation
activities and improvements to maintain a comprehensive, cooperative, and continuing mulit-agency
transportation planning program for the Sierra Vista region. For more information, visit www.svmpo.org.
COCHISE COLLEGE CENTER FOR ECONOMIC RESEARCH
The CER provides economic information, analysis, and forecasting to help leaders in the public, private,
and nonprofit sectors make informed decisions. For more information, see the ‘About the Center for
Economic Research’ section of this publication or visit www.Cochise.edu/CER.
COCHISE COLLEGE SMALL BUSINESS DEVELOPMENT CENTER
SBDC is staffed with business counselors, analysts, and technology specialists who provide one-on-one
confidential assistance for small businesses at every stage of development. SBDC provides counseling and
assistance in planning, marketing, accounting, start-up, licensing, strategic planning, government
procurement, technology, and sources of capital, with special initiatives in veterans’ assistance, clean
technology, and government contracting. SBDC partners with U.S. Small Business Administration and
Association of Small Business Development Centers to provide local access to nationwide resources. For more
information, visit www.Cochise.edu/SBDC.
SOUTHEASTERN ARIZONA GOVERNMENTS ORGANIZATION
SEAGO is a council of governments serving local and tribal governments in the four-county region
(Cochise, Graham, Greenlee, and Santa Cruz counties) and is a designated Economic Development District
(EDD) by U.S. Economic Development Administration. SEAGO’s EDD program assists distressed areas,
planning regions, cities, and counties in economic development planning, policymaking, and
implementation. As an EDD, SEAGO has responsibility for developing the Regional Comprehensive
Economic Development Strategy (CEDS), a guide to economic development initiatives throughout the
region. The CEDS process, which includes input from member entities, enables SEAGO members to apply
for federal grant funding. For more information, visit www.SEAGO.org.
SOUTHEASTERN ARIZONA WORKFORCE CONNECTION & ARIZONA DEPARTMENT OF
ECONOMIC SECURITY
Southeastern Arizona Workforce Connection (SAWC), a 501(c)(3) nonprofit corporation, in partnership
with Arizona Department of Economic Security, offers free services to businesses and job seekers. Cochise
County One Stops, with locations in Sierra Vista and Douglas, are staffed by SAWC and DES representatives
providing no-cost business services to assist employers with advertising, hiring, employee development,
business closure, and job announcements. In addition, One Stops provide job seekers with free preemployment preparation, training programs, job-search resources, and access to computers, printers, copiers,
phone, fax, and internet. Veteran representatives are on staff and veterans receive priority service. For more
information on SAWC, visit www.SEAZworkforce.org. For more information on DES, visit www.AZDES.gov.
Recent Activities
VISTA 2030 GENERAL PLAN
In 2014, Sierra Vista voters ratified the city’s updated general plan, Vista 2030. The plan is a collection of
goals and strategies that serve as the primary tool and blueprint for guiding the growth and development of
the city over the next 10 years. It integrates ideas and desires of residents, businesses, and elected officials into
a strategy for managing the city’s future, encompassing infrastructure, transportation, economic
development, and quality of life. Comments provided by residents during the ‘Dream Your City’ visioning
process, held in 2013, were incorporated into all 17 elements of the general plan.
PLAN FOR PROSPERITY
Commissioned by Sierra Vista City Council and published in 2013, the city’s Plan for Prosperity is an
analysis of the community’s strengths, weaknesses, opportunities, and threats supporting an economic
development framework built on eight strategic objectives designed to grow and diversify Sierra Vista’s
economy. Inclusive of both short- and long-term objectives, the plan emphasizes city-wide collaboration,
elevation of existing assets, and building a firm foundation for future industries and jobs. Implementation
for the plan is underway, relying on the city assuming a leadership role for coordinated economic
development, which focuses on area anchor institutions: eds, meds and feds (education, medical, and federal
government) for future growth. Central to the plan is a partnership between the city, Sierra Vista Economic
Development Foundation, and the private-sector Fort Huachuca 50 organization.
OUR FUTURE VISTAS – CITY COUNCIL STRATEGIC LEADERSHIP PLAN
Since 2007, Sierra Vista City Council has developed biannual strategic leadership plans. Entitled Our
Future Vistas, the document provides a vision for the future, supported by focus areas, goals, and objectives—
all built around supporting the voter-approved general plan. The strategic plan guides budget investments
and staff time allocated to programs, issues, and projects identified as priority items. The 2014-2016 plan is
built on a larger 20-year plan and identifies nine areas of strategic focus, including natural resource
management and environmental stewardship, regional partnerships, a strong relationship with Fort
Huachuca, well-planned development, and economic diversity. The city council is scheduled to approve an
updated two-year plan in mid-2015. For more information, visit www.SierraVistaAZ.gov.
ENVIRONMENTAL STEWARDSHIP
To help protect such resources as Fort Huachuca and the San Pedro River, the city has developed several
water conservation programs and actions. In 2013, the city was notified by U.S. Environmental Protection
Agency that it was the first community in the nation to adopt the agency's WaterSense program for future
residential development. WaterSense is a partnership program by EPA that seeks to protect the future of the
nation's water supply by offering ways to use less water with water-efficient products, new homes, and
services. Water conservation codes for all new development now require developers to use a variety of watersaving devices in new construction, to include waterless urinals in commercial buildings and recirculating
pumps or on-demand devices for hot water in new residential construction. City codes also require new
commercial developments to build on-site detention basins; eliminate turf in new commercial landscapes in
favor of low-water-use plants; and limit turf in front yards of new homes to 200 square-feet.
The city also partners with The Cochise Water Project by providing funding to expand rebates for
replacing high flow toilets, turf replacement, and other programs. The city received several grants for public
facilities in 2015 to install a number of water harvesting tanks and replace grass in front of city hall with
9
10
artificial turf. In addition, the city is a joint funding partner with Fort Huachuca and Cochise County to
support the ‘Water Wise’ program hosted by University of Arizona Cooperative Extension. Water Wise
provides education and programs related to water conservation to residents and businesses.
The city’s wastewater treatment facility also incorporates technology that results in recharge of nearly
seven million gallons of water to the aquifer each year making it the largest water mitigation activity in the
sub-watershed, according to city officials. For more information, visit www.SierraVistaAZ.gov.
WEST END DEVELOPMENT
Sierra Vista’s West End (west of Seventh Street to Buffalo Soldier Trail, and north of Golf Links Road to
State Highway 90) has been the focus of redevelopment efforts by the city in recent years due to its potential
to advance small business ownership and entrepreneurship. The area is the oldest community in the city and
includes most of the original area that made up Sierra Vista when it was first incorporated in 1956. City staff
has worked with residents, business owners, Fort Huachuca officials, West End commissioners, and other
community leaders to develop strategies to revitalize the area and promote private investment and
redevelopment. The city offers several incentives to encourage redevelopment in the West End, to include an
expedited review process and flexibility regarding issues such as parking requirements, setbacks, and height
limitations. The city also gives consideration to fee waivers for development in the West End. Commercial
projects that replace existing structures automatically qualify for a development fee waiver.
QUALITY OF LIFE
Part of the city’s economic development efforts in recent years has been enhancement of quality of life
factors to help attract new businesses and residents to the area. This includes parks, well designed and
maintained streets, affordable neighborhoods, cultural and recreational opportunities, dining and shopping
opportunities, successful commercial districts, open space, a system of bicycle and walking/multi-use paths
throughout the city, and other amenities. Centennial Pavilion, located at the city’s main Veterans Park,
provides a venue for performances ranging from intimate events to full-scale concerts. The Ethel H. Berger
Center includes an active-adult lounge, activity rooms, dance studio, horseshoe pits, kitchen and dining
room, and stage, and also serves as home to the Henry F. Hauser Museum. Oscar Yrun Community Center
includes activity rooms, auditorium, arts and crafts studio, shuffleboard, and tennis courts, and provides the
location of the Sierra Vista Visitor's Center. Sierra Vista Aquatic Center (‘The Cove’) offers beach entry, wave
pool, children's lagoon with slide, diving pool, sunning decks, lap and competition lanes, two 150-foot tube
water slides, party area, snack bar, warm water pool, and a walking path. The city’s Teen Center offers itself
as a safe and fun place for youth to gather after school and on weekends for supervised activities and
recreation. Preliminary plans are underway to eventually build a town center with a variety of retail, dining,
and entertainment establishments. As of early 2015, the city was also planning for construction of additional
multiuse paths to expand alternative transportation, as well as expansion and upgrading of transportation
infrastructure.
ARIZONA-SONORA BORDER MAYORS COALITION
In 2013, Arizona-Sonora Border Mayors Coalition was established, which includes all seven incorporated
cities and towns in Cochise County, along with several border cities and towns in northern Sonora. The
coalition’s goal is to increase economic opportunities in the region by promoting cross-border tourism,
border safety, border infrastructure, and employment.
Major Assets
SIERRA VISTA MUNICIPAL AIRPORT
Sierra Vista Municipal Airport is a civilian/military joint-use airport serving Southeastern Arizona and
Northern Mexico and sharing runways with Fort Huachuca’s Libby Army Airfield. The military owns and
operates land and facilities on the south side of the airport including the control tower, while the city owns 75
acres on the north side including hangars and tie-down sites, which it leases out. Hangar access is available 24hours a day, seven days a week, through electrically operated security gates. Self-fueling services are also
available. The airport has three runways: Runway 08-26 is 12,001 feet long by 150 feet wide and is constructed
of reinforced concrete; Runway 12-30 is 5,365 feet long by 100 feet wide, constructed of asphaltic concrete; and
Runway 03-21 is 4,300 feet long by 75 feet wide, also constructed of asphaltic concrete. Currently, there is no
commercial air service to Sierra Vista Municipal Airport. For more information, visit www.SierraVistaAZ.gov.
FOREIGN TRADE ZONE
Cochise County has industrial property designated as a foreign-trade zone (FTZ-139). Companies
located in the FTZ can use special procedures that allow delayed or reduced duty payments on foreign
merchandise. Other benefits include:
•
no duties or quota charges on re-exports;
•
deferred customs duties and federal excise tax on imports;
•
in cases where manufacturing results in a finished product that has a lower duty rate than the rates on
foreign inputs (inverted tariff), the finished products may be entered at the duty rate that applies to its
condition as it leaves the zone (subject to public interest considerations);
•
access to streamlined customs procedures such as weekly entry or direct delivery; and
•
exemption from state/local inventory taxes for foreign and domestic goods held for export.
Merchandise in a zone may be assembled, exhibited, cleaned, manipulated, manufactured, mixed,
processed, relabeled, repackaged, repaired, salvaged, sampled, stored, tested, displayed, and destroyed. Retail
trade is prohibited in the zone. Before a firm may use the FTZ, it must obtain approval from U.S. Customs
and Border Protection (CBP) for ‘activation’ of the space to be used, must meet CBP requirements for
security and inventory control, and is responsible for all fees associated with activating and running the site.
For more information, contact Sierra Vista Economic Development Foundation at hollism@svedf.org.
Incentives
For more information on these and other incentives, visit www.AzCommerce.com.
ADDITIONAL DEPRECIATION
Accelerates depreciation schedules for prospective acquisitions of commercial personal property
ANGEL INVESTMENT
State income tax credit for capital investments in small businesses certified by Arizona Commerce
Authority
COMMERCIAL/INDUSTRIAL SOLAR
State income tax credit for installation of solar energy devices in business facilities
COMPUTER DATA CENTER PROGRAM
Transaction privilege tax and use tax exemptions at state, county, and local levels on qualifying purchases
of computer data center equipment
FOREIGN TRADE ZONE
Up to 80 percent reduction in state real and personal property taxes for businesses located in a zone or
subzone
HEALTHY FOREST
Incentives for certified businesses primarily engaged in harvesting, processing, or transporting qualifying
forest products
JOB TRAINING
Reimbursable grants up to 75 percent of eligible training expenses for employers creating new jobs
LEASE EXCISE
Redevelopment tool to initiate development by reducing a project's operating costs by replacing real
property tax with an excise tax
PRIVATE ACTIVITY BONDS
Securities issued by or on behalf of a local government to provide debt financing for projects used for a
trade or business
11
12
QUALIFIED ENERGY CONSERVATION BONDS
Tax credit bonds originally authorized by Tax Extenders and Alternative Minimum Tax Relief Act of 2008
QUALIFIED FACILITY
Refundable state income tax credit for eligible companies making capital investment to establish or
expand qualified facilities
QUALITY JOBS
Up to $9,000 state income or premium tax credits spread over three-year period for each net new quality
job
RENEWABLE ENERGY TAX INCENTIVE
Up to 10 percent refundable state income tax credit and 75 percent reduction on real and personal
property taxes for companies engaged in the solar, wind, geothermal, and other renewable energy industries
RESEARCH & DEVELOPMENT
State income tax credit for increased research and development activities
SALES TAX EXEMPTIONS FOR MACHINERY AND EQUIPMENT
Sales tax exemption for various machinery or equipment
SMALL BUSINESS INNOVATION RESEARCH GRANT
Competitive grant for small businesses to explore technological potential and commercialization
SMALL BUSINESS TECHNOLOGY TRANSFER GRANT
Funding opportunities to meet national scientific and technological challenges
WORK OPPORTUNITY
Federal tax credit for hiring individuals from groups consistently faced with significant barriers to
employment
Education
Primary and Secondary Education
SIERRA VISTA UNIFIED SCHOOL DISTRICT
SVUSD consists of one high school, one middle school, and six elementary schools. For more
information, visit www.SVUSD68.org.
FORT HUACHUCA ACCOMMODATION SCHOOLS
FHAS consists of one middle and two elementary schools located on Fort Huachuca. FHAS are Arizona
public schools under the jurisdiction of Arizona Department of Education. As such, enrollment is not limited
to military personnel or those associated with the fort. For more information, visit
www.FtHuachuca.K12.Az.US.
CHARTER SCHOOLS
In addition to SVUSD and FHAS, Sierra Vista also has four charter schools: Center for Academic Success
#1 and Center for Academic Success #5 (www.cas-schools.com), The Berean Academy (berean-academy.com),
and PPEP-TEC Colin L. Powell Learning Center (www.ppeptechs.org). Imagine Charter School at Sierra Vista
and Presidio de las Sierras School closed at the end of the 2014 school year.
DISTRIBUTION OF PER PUPIL SPENDING
Total
SIERRA VISTA UNIFIED
SCHOOL DISTRICT
PEER
ARIZONA
UNITED
STATES
$6,772
$7,187
$7,496
$10,658
Classroom Dollars
$3,645
$3,779
$4,031
$6,520
Non-classroom Dollars
$3,127
$3,408
$3,465
$4,138
Administration
$822
$764
$746
$1,138
Plant Operations
$833
$921
$924
$1,015
Food Service
$317
$364
$396
$412
Transportation
$345
$394
$369
$452
Student Support
$466
$561
$582
$593
Instruction Support
$344
$404
$448
$528
Note: Data for the Sierra Vista Unified School District, peer districts, and Arizona are from 2013; national
figures are from 2011. Source: Arizona Office of the Auditor General.
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14
SCHOOL ENROLLMENT
2012
2013
2014
Sierra Vista Unified School District
5,562
5,515
5,467
Bella Vista Elementary School (K-6)
376
408
383
1,968
1,924
1,907
Carmichael Elementary School (pre-K-6)
Buena High School (9-12)
409
372
360
Huachuca Mountain Elementary School (K-6)
569
589
583
Joyce Clark Middle School (formerly SV Middle School) (7-8)
751
759
767
Pueblo Del Sol Elementary School (K-6)
633
621
643
Town & Country Elementary School (K-6)
400
391
372
Village Meadows Elementary School (K-6)
Fort Huachuca Accommodation District
Colonel Johnston Elementary School (pre-K-2)
456
451
452
1,015
1,038
1,056
377
382
417
Colonel Smith Middle School (6-8)
317
316
308
General Myer Elementary School (3-5)
321
340
331
1,547
1,413
1,228
464
420
374
Charter Schools
The Berean Schools Academy (K-12)
Center for Academic Success #5 (K-5)
298
313
305
Center for Academic Success #1 (9-12)
128
135
98
Imagine Charter School at Sierra Vista (K-8)
505
356
289
PPEP-TEC Colin L. Powell Learning Center (9-12)
62
80
75
Presidio de las Sierras School (K-8)
90
109
87
Note: Figures reflect enrollment as of October 1 of each school year. Source: Arizona Department of Education
ARIZONA A-F LETTER GRADE
ACCOUNTABILITY SYSTEM (2014)
LETTER GRADE ACCOUNTABILITY SYSTEM
Sierra Vista Unified School District
B
Buena High School (9-12)
B
Joyce Clark Middle School (6-8)
B
Bella Vista Elementary (K-5)
B
Carmichael Elementary (K-5)
B
Huachuca Mountain Elementary (K-5)
A
Pueblo del Sol Elementary (K-5)
A
Town & Country Elementary (K-5)
B
Village Meadows Elementary (K-5)
B
Fort Huachuca Accommodation District
B
Colonel Smith Middle School (6-8)
B
General Myer Elementary School (3-5)
B
Colonel Johnston Elementary School (pre-K-2)
A
Charter Schools
The Berean Academy (K-12)
B
Center for Academic Success #1 (9-12)
A-ALT
PPEP-TEC Colin L. Powell Learning Center (9-12)
B-ALT
Imagine Charter School at Sierra Vista (K-8)
B
Center for Academic Success #5 (K-5)
A
Presidio de las Sierras School (K-8)
B
Source: Arizona Department of Education.
Arizona A-F Letter Grade Accountability System assigns
a grade with respect to the school’s performance on
Arizona's Instrument to Measure Standards (AIMS) and
how much students grow academically each year. Other
factors include dropout rate, graduation rate, and English
language learner reclassification rate (as applicable). For
alternative schools, accommodation schools, extremely
small schools, and K-2 schools, unique characteristics
are taken into account. Ratings follow the traditional
academic letter grade system of A=excellent, B=above
average, C=average, D=needs improvement, and
F=failing. For alternative schools, the grade is further
designated with – ALT.
STUDENT AND TEACHER MEASURES (2013)
SIERRA VISTA UNIFIED
SCHOOL DISTRICT
PEER
ARIZONA
94%
94%
94%
Attendance Rate
Graduation Rate (2012)
89%
82%
77%
Poverty Rate (2012)
18%
15%
25%
Students per Teacher
Average Teacher Salary
19.5
16.5
18.3
$45,159
$40,197
$45,264
Average Years Teacher Experience
12.0
11.1
10.9
Percentage of Teachers in First 3 Years
11%
15%
19%
Source: Arizona Office of the Auditor General.
Postsecondary Education
COCHISE COLLEGE
Cochise College is a two-year community college with campuses in Sierra Vista and Douglas and
learning centers in Benson, Willcox, and at Fort Huachuca. The college also offers classes online and in
neighboring Santa Cruz County. Cochise College offers two-year degree and certificate programs in a variety
of fields, non-credit personal enrichment classes, GED, English Language Acquisition, workforce training,
and numerous other learning opportunities through its Center for Lifelong Learning, Adult Education
Center, and Small Business Development Center. The college’s Center for Economic Research tracks trends
in the local economy and publishes local economic research. The college’s athletic programs draw students
nationally and internationally.
In 2015, the Legacy Foundation of Southeast Arizona and Cochise College reached an agreement that
will result in donation of the 93,000-square-foot, former Sierra Vista Regional Health Center facility to the
college upon relocation of medical services to the new Canyon Vista Medical Center in April 2015. Cochise
College plans to use the facility as a healthcare education center for its healthcare students, including future
nurses, medical and certified nursing assistants, respiratory therapists, EMTs, and paramedics, as well as to
offer community-based outreach services.
Cochise College is accredited by the Higher Learning Commission of the North Central Association. For
more information, visit www.Cochise.edu.
SIERRA VISTA
EDUCATIONAL ATTAINMENT
EDUCATIONAL ATTAINMENT
40%
2000
35%
20112013
30%
25%
20%
15%
12.5%
7.5%
Bachelor's Degree
Graduate or
Professional Degree
Associate Degree
20.2%
18.2%
12.8%
10.9%
Note: Population 25 years and older. Source: U.S. Census Bureau (20112013 American Community Survey 3-Year Estimates) and Cochise
College Center for Economic Research.
0%
27.3% Some College
32.1% NO DEGREE
United States
High School grad
or equivalent
9th to 12th grade
Arizona
20.4%
22.8%
Cochise County
NO DIPLOMA
Sierra Vista
5%
5.3%
BACHELOR’S DEGREE
OR HIGHER
2.8%
32.7% 23.6% 27.2% 29.1%
HIGH SCHOOL GRADUATE
OR HIGHER
Less than 9th grade
93.3% 86.4% 85.8% 86.3%
3.9%
10%
3.2%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Note: Population 25 years and older. Source: U.S. Census Bureau
(Census 2000 and 2011-2013 American Community Survey 3-Year
Estimates) and Cochise College Center for Economic Research.
15
16
UNIVERSITY OF ARIZONA (UA) SIERRA VISTA
UA Sierra Vista offers upper-division courses for students to complete undergraduate degree programs in
cooperation with Cochise College and other Arizona community colleges. Undergraduate degree programs are
offered in anthropology, commerce, computer science, early childhood education, elementary education,
English, government and public service, history, informatics, intelligence studies, Latin American studies, mathematics, network administration, and psychology. Undergraduate degree programs in human services, supervision, and family studies and human development, as well as graduate degree programs in educational technology and secondary education, are offered online. UA Sierra Vista is a commuter campus with schedules designed
to accommodate working adults and returning students. For more information, visit www.UAS.Arizona.edu.
WAYLAND BAPTIST UNIVERSITY
Wayland Baptist University has campus locations in Sierra Vista and on Fort Huachuca, catering to
working adults to include military, border patrol, and other government employees. Undergraduate degree
programs are offered in management, business administration, computer information systems, teacher
education, justice administration, human services, Christian ministry, and occupational education. Graduate
degree programs are offered in management, business administration, Christian ministry, and public
administration. For more information, visit www.WBU.edu.
EMBRY-RIDDLE AERONAUTICAL UNIVERSITY
Embry-Riddle Aeronautical University on Fort Huachuca offers undergraduate degree programs in
aviation business administration, aviation maintenance, professional aeronautics, and technical management
as well as graduate degree programs in aeronautical science and business administration in aviation. For
more information, visit www.ERAU.edu.
COCHISE COLLEGE TWO-YEAR DEGREE PROGRAMS
Administration of Justice
Agriculture
Automotive Technology
Avionics Technology
Biology
Building Construction Technology
Business Administration
Business Management
Chemistry
Communications
Computer Information Systems
Computer Programming
Computer Science
Culinary Arts
Cybersecurity
Early Childhood Care And Education
Education
Elementary Education
Economics
Electronics Technology
Engineering
English
Equine Science and Management
Exercise Science, Health and Physical Education, Recreation and Wellness
Fine ArtsFire Science Technology
General Requirements
General Studies
Humanities
Intelligence Operations Studies
Journalism and Media Arts
Logistics Supply Chain Management
Mathematics
Media Production Arts
Music
Network Technology
Paramedicine
Philosophy
Physics
Professional Administrative Assistant
Professional Pilot Technology
Psychology
Registered Nurse
Respiratory Therapy
Social Sciences
Social Work
Theatre Arts
Unmanned Aerial Vehicle Flight Operator
Unmanned Aircraft Systems and Operations
Unmanned Aircraft Systems Technician
Welding Technology
Healthcare
Photo: Sierra Vista Herald/Bisbee Daily Review
Overview
In addition to Canyon Vista Medical Center, described in detail below, Sierra Vista is home to Raymond W. Bliss
Army Health Center on Fort Huachuca (RWBACH.Huachuca.AMEDD.Army.mil), Veterans Administration Sierra
Vista Community Based Outpatient Clinic (www.Tucson.VA.gov), and numerous private-practice physicians and
healthcare providers. Cochise County Health and Social Services (www.Cochise.Az.gov), with a location in Sierra
Vista, offers preventative services and resources.
Canyon Vista Medical Center
In 2013, Sierra Vista Regional Health Center became part of the RegionalCare Hospital Partners network. As part of
the merger, RegionalCare broke ground on a new 175,000-square-foot, 100-bed hospital in Sierra Vista, scheduled to
open in April 2015 as Canyon Vista Medical Center, replacing the former SVRHC. Canyon Vista’s 100 beds is an increase
from the former SVRHC’s 88, with all the rooms private. The new hospital will also include the addition of 15 inpatient
psychiatric beds—a service not offered by the previous SVRHC. RegionalCare has committed $18 million to recruit 25
physicians over seven years and expects to hire an additional 100 employees once the new facility is opened. Services will
continue to include cardiac catheterization lab, cardiopulmonary services, cardiac rehabilitation, Carter Imaging Center,
case management, critical care, diagnostic imaging, emergency room, hospice, laboratory, maternity, medical surgical
services, nutrition and
HOSPITAL MILEAGE CHART
food services, orthopeCopper
Northern
Canyon
dics, sports medicine,
Queen
Holy
Cochise Northwest Cochise
Vista
St.
St.
Tucson Tucson University University
Benson Community Cross Community Medical Regional Medical Joseph’s Mary’s Medical Heart Medical Physician
outpatient surgery cenHospital Hospital Hospital Hospital Center Hospital Center* Hospital Hospital Center Hospital Center Hospitals
0
52
75
37
67
72
35
45
49
49
58
48
43
ter, medical telemetry, Benson Hospital
52
0
91
86
118
22
27
95
100
99
108
99
94
pediatrics, pharmacy, Copper Queen Community Hospital
Holy Cross Hospital
75
91
0
110
84
111
64
72
67
73
75
70
65
pulmonary rehabilita- Northern Cochise Community Hospital 37
86
110
0
103
72
71
80
85
84
93
84
79
tion, rehabilitation, sur- Northwest Medical Center
67
118
84
103
0
137
94
21
16
18
11
15
25
72
22
111
72
137
0
47
115
120
119
128
118
114
gical services, wound Cochise Regional Hospital
35
27
64
71
94
47
0
72
77
77
86
76
71
care, and a family health Canyon Vista Medical Center*
St Joseph’s Hospital
45
95
72
80
21
115
72
0
10
3
11
6
8
clinic located in Tomb- St. Mary’s Hospital
49
100
67
85
16
120
77
10
0
9
8
5
10
49
99
73
84
18
119
77
3
9
0
8
4
8
stone providing treat- Tucson Medical Center
58
108
75
93
11
128
86
11
8
8
0
5
10
ment of acute and Tucson Heart Hospital
University Medical Center
48
99
70
84
15
118
76
6
5
4
5
0
5
chronic diseases, well University Physician Hospitals
43
94
65
79
25
114
71
8
10
8
10
5
0
woman exams, well *Formerly Sierra Vista Regional Health Center. Source: Cochise College Center for Economic Research.
child checks, vaccinations, school and CDL physicals, EKGs, spirometry, free blood pressure checks, and treatment of
non-emergent trauma. Helicopter services and ground transportation will continue, along with Trauma Telemedicine,
which provides a real-time connection to trauma doctors at the University Medical Center in Tucson. The new facility is
expected to expand emphasis on outpatient services. For more information, visit CanyonVistaMedicalCenter.com.
17
18
Population & Demographics
The population of Sierra Vista as of July 2014 was 44,286. As the economic hub of Cochise County, the
city’s daytime population is higher than indicated by population estimates. Sierra Vista’s retail market serves
an estimated population of more than 110,000. The city’s population includes Fort Huachuca as a result of
annexation of the fort in 1971. As of the 2011-2013 American Community Survey, 27.6 percent of Sierra
Vista’s population ages 18 and older are civilian veterans of the military, more than three times the national
level. This is largely due to the number of Department of the Army civilian positions at Fort Huachuca, as
well as defense contracting personnel, many of whom are former members of the military. Also, the large
number of retirees in the area has increased the number of civilian veterans, since many retirees once served
in the armed forces though perhaps not in connection with Fort Huachuca.
POPULATION
SIERRA VISTA
1990
2000
2010
2011
2012
2013
2014
COCHISE COUNTY
ARIZONA
POPULATION
GROWTH
POPULATION
GROWTH
POPULATION
GROWTH
32,983
37,775
43,888
45,098
45,794
45,303
44,286
——
14.5%
16.2%
2.8%
1.5%
-1.1%
-2.2%
97,624
117,755
131,346
130,537
130,752
130,906
129,628
——
20.6%
11.5%
-0.6%
0.2%
0.1%
-1.0%
3,665,228
5,130,632
6,392,017
6,438,178
6,498,569
6,581,054
6,667,241
——
40.0%
24.6%
0.7%
0.9%
1.3%
1.3%
Note: Growth rates shown for 2000 and 2010 reflect preceding 10-year period; rates for 2011 forward are
annual. Source: U.S. Census Bureau, Arizona Office of Employment and Population Statistics, and Cochise
POPULATION PROJECTIONS
YEAR
SIERRA VISTA
HISPANIC/LATINO POPULATION
COCHISE COUNTY
2020 . . . . . . . . . . . . .49,399 . . . . . . . . .142,398
2030 . . . . . . . . . . . . .54,303 . . . . . . . . .157,693
2040 . . . . . . . . . . . . .59,333 . . . . . . . . .173,377
2050 . . . . . . . . . . . . .65,261 . . . . . . . . .192,301
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
19.4%
32.4%
Sierra Vista Cochise County
Source: Arizona Office of Employment and Population Statistics.
SIERRA VISTA AGE GROUP DISTRIBUTION
2000
7.7%
7.1%
6.9%
8.2%
9.0%
15.4%
13.8%
11.0%
4.7%
4.2%
7.1%
4.1%
0.9%
Under 5
5 to 9
10 to 14
15 to 19
20 to 24
25 to 34
35 to 44
45 to 54
55 to 59
60 to 64
65 to 74
75 to 84
85 and over
2010
7.5%
6.4%
5.6%
7.3%
8.7%
16.9%
11.9%
11.3%
4.9%
4.8%
8.0%
4.9%
1.7%
16.3%
Arizona
United States
Note: The U.S. Census Bureau considers Hispanic an ethnicity, not a
race; thus, there is no separate racial classification for Hispanic.
According to the Census Bureau, people identifying themselves as
Hispanic may be of any race. Source: U.S. Census Bureau (Census 2010)
SIERRA VISTA RACIAL COMPOSITION
White
74.5%
Black/African
American
9.0%
Other
10.7%
Source: U.S. Census Bureau (Census 2000 and Census 2010) and Cochise
Native Hawaiian/
Pacific Islander 0.6%
INCOME
29.6%
American Indian/
Alaska Native 1.1%
Asian 4.1%
Note: Discrepancies are due to rounding. The U.S. Census Bureau
considers Hispanic an ethnicity, not a race; thus, there is no separate
racial classification for Hispanic. According to the Census Bureau, people
identifying themselves as Hispanic may be of any race. Source: U.S.
Census Bureau (Census 2010) and Cochise College Center for Economic
Research.
$70,000
$60,000
$50,000
POVERTY LEVEL
$40,000
$30,000
20%
MEDIAN HOUSEHOLD
INCOME
Sierra Vista
MEDIAN FAMILY
INCOME
Cochise County
Arizona
$27,884
$24,961
$27,450
$23,043
$57,317
$63,784
$69,186
$53,203
$48,546
$52,176
$0
$58,040
$10,000
$44,103
$20,000
PER CAPITA
INCOME
15%
10%
United States
Note: All figures expressed in 2013 dollars. Source: U.S. Census Bureau,
2011-2013 American Community Survey 3-Year Estimates and Cochise
5%
0%
14.1%
18.9%
18.7%
15.9%
SIERRA VISTA
COCHISE COUNTY
ARIZONA
UNITED STATES
Source: U.S. Census Bureau (2011-2013 American Community Survey
3-Year Estimates) and Cochise College Center for Economic Research.
19
20
Employment
Employment Outlook
The largest threat to labor market improvement in Cochise County comes from defense budget cuts
impacting Fort Huachuca, which are the natural upshot of winding down wars in Iraq and Afghanistan.
While the rest of the state and nation suffered through severe effects of the Great Recession in 2008 and 2009,
Cochise County was buffered from the worst of it due to increased defense spending on the fort and its
missions, along with indirect and induced impacts of that spending. Those increases were principally tied to
the wars. Defense cuts are likely to continue to hinder labor market improvement in Sierra Vista and Cochise
County.
On the upside, threats emerging from the Middle East drawing a U.S. military response in late 2014 and
into 2015 may cause national policymakers to reconsider levels of military spending reductions, which could
impact military intelligence, unmanned aerial systems, and cyber-security missions at Fort Huachuca.
Depending on the nature and duration of U.S. involvement in the region, the fort may see drawdown efforts
level off, or may even see an uptick in activity given the relevancy of the fort’s missions to counterterrorism
and related efforts.
Aside from recent U.S. military action in the Middle East and the potential that creates for increased
defense spending, the majority of defense related cuts impacting Fort Huachuca have likely already occurred.
From 2009 through 2014, Fort Huachuca lost 2,350 fulltime equivalent jobs (permanently assigned active
duty military, civil servants, non-appropriated fund workers, and average daily number of students assigned
for training; this number does not include defense contractors). The bulk of those reductions came from the
relocation of units from the fort and a drop in the number of intelligence students trained. The fort’s average
UNEMPLOYMENT RATE (%)
SIERRA VISTA
2010
5.3
2011
7.8
2012
7.7
2013
8.0
2014
7.5
2014 (Dec)
7.2
COCHISE
COUNTY
8.8
8.8
8.3
8.8
8.3
8.0
ARIZONA
10.4
9.4
8.3
8.0
7.0
6.7
SIERRA VISTA LABOR MARKET DATA
UNITED
STATES
9.6
8.9
8.1
7.4
6.2
5.6
Source: U.S. Bureau of Labor Statistics, Arizona Office of Employment
and Population Statistics, and Cochise College Center for Economic
Research.
2010
CIVILIAN
LABOR
FORCE
JOB
EMPLOY- UNEMPLOY- JOB GROWTH
MENT
MENT
GAINS RATE
19,562
18,519
1,043
-185
-1.0
2011
21,143
19,501
1,642
982
5.3
2012
20,548
18,974
1,574
-527
-2.7
2013
19,450
17,885
1,565
-1,089
-5.7
2014
19,077
17,655
1,422
-230
-1.3
Source: Arizona Office of Employment and Population Statistics and
Cochise College Center for Economic Research.
daily student load declined 35 percent from more than 3,200 in 2010 to approximately 2,100 in 2014. As of
2014, the average daily student load was below the level it was in 2000 and 2001, before the 9/11 terrorist
attacks and subsequent buildup. Fort Huachuca adjusted to the war-related increases in students by hiring
contractors to provide training. As student numbers have dropped, contracting jobs have been eliminated.
The eight largest defense contractors in Cochise County lost nearly 465 jobs from 2012 to 2013 alone. When
factoring in defense contractors, the total number of Fort Huachuca-related jobs lost from 2009 through 2014
is likely in the range of 3,000 to 4,500, making significant further cuts unlikely, including reductions related
to the proposed Army 2020 Force Structure Realignment.
One factor that will help the local labor market is the new, 100-bed hospital in Sierra Vista (Canyon Vista
Medical Center) scheduled to open in April 2015. During construction, the new hospital gave a boost to
employment in the local construction industry, as well as struggling area hospitality industries as specialized
work crews were brought in for the project. Once open, it is estimated the new hospital will employ 100
additional workers. In the longer run, the new hospital will serve as an economic development asset to lure
new businesses and retirees to the area, which will assist in labor market improvement.
SIERRA VISTA OCCUPATIONS
SIERRA VISTA CLASSES OF WORKERS
Sales and Office
23.1%
Private Wage
and Salary
Management,
Business, Science,
and Arts
Service
Government
63.3%
31.2%
40.8%
23.7%
6.2%
Production, Transportation,
and Material Moving
5.3%
6.2%
Unpaid Family Workers 0.2%
Natural Resources,
Construction, and Maintenance
Source: U.S. Census Bureau (2011-2013 American Community Survey 3Year Estimates) and Cochise College Center for Economic Research.
Source: U.S. Census Bureau (2011-2013 American Community Survey 3Year Estimates) and Cochise College Center for Economic Research.
INDUSTRIES IN SIERRA VISTA
(BY SHARE OF WORKFORCE)
Public Admin
20.8%
Other
22.5%
Education Services,
Health Care, &
Social Assistance
18.3%
14.3%
10.0%
Retail Trade
Self Employed
Prof, Scientific,
Mgmt, Admin, &
Waste Mgmt
14.1%
Arts, Entertainment,
Recreation, Accommodation, & Food Svc
Note: Includes only industries accounting for at least 5 percent of the
workforce; industries accounting for less than 5 percent are grouped in
the category “other.” Source: U.S. Census Bureau (2011-2013 American
Community Survey 3-Year Estimates) and Cochise College Center for
Economic Research.
21
22
SIERRA VISTA’S TOP EMPLOYERS (2014)
FULLTIME EQUIVALENT
EMPLOYER
EMPLOYEES*
U.S. Army Fort Huachuca
7,874
Sierra Vista Unified School District #68
690
General Dynamics Information Technology
610
Sierra Vista Regional Health Center
466
Northrop Grumman Corporation
450
386
ManTech International
385
Cochise College
323
Wal-Mart Stores, Inc.
264
Raytheon Intelligence, Information and Services
235
TASC, Inc.
172
Lawley Automotive Group
162
Cochise County
157
Life Care Center of Sierra Vista
115
AIRES LLC
95
Sulphur Springs Valley Electric Cooperative Inc.
95
Cochise Private Industry Council
88
Lowe's of Sierra Vista
88
KE&G Construction, Inc.
68
United States Post Office
65
*A fulltime equivalent (FTE) employee equals one fulltime employee or
two part-time employees. For employers with multiple site locations, the
number of FTE employees reflects only those employees reporting to
work in Sierra Vista. Note: This list includes only those employers who
responded to the CER’s annual top employer survey. Source: Cochise
SIERRA VISTA AREA BUSINESS ESTABLISHMENTS BY EMPLOYMENT-SIZE CLASS (2012)
Number of establishments by employment-size class
TOTAL
1-4
5-9
10-19
20-49
Accommodation & Food Services
INDUSTRY
106
27
14
23
29
50-99 100-249 250-499 500-999
12
1
0
0
Admin., Support, Waste, & Remediation
67
39
14
6
6
1
0
0
1
Arts, Entertainment & Recreation
12
6
3
0
2
1
0
0
0
Construction
86
43
18
15
7
3
0
0
0
Educational Services
20
5
6
3
6
0
0
0
0
Finance & Insurance
62
41
12
6
2
1
0
0
0
Health Care & Social Assistance
168
61
50
33
16
5
2
0
1
Information
17
5
5
4
2
1
0
0
0
Management of Companies & Enterprises
6
3
1
1
1
0
0
0
0
Manufacturing
15
10
2
2
1
0
0
0
0
Mining, Quarrying & Oil & Gas Extraction
1
1
0
0
0
0
0
0
0
Other Services (except Public Administration) 102
58
27
14
3
0
0
0
0
Professional, Scientific & Technical Services
67
18
10
10
8
5
2
0
120
Real Estate & Rental & Leasing
67
44
17
5
1
0
0
0
0
Retail Trade
179
65
53
34
15
6
5
1
0
Transportation & Warehousing
25
15
3
4
2
1
0
0
0
Utilities
6
2
0
0
2
2
0
0
0
Wholesale Trade
TOTAL
14
9
2
2
1
0
0
0
0
1,073
501
245
162
106
41
13
3
2
Note: Includes ZIP codes 85635, 85636, and 85650. Source: U.S. Census Bureau and the Cochise College Center for Economic Research.
SIERRA VISTA AREA EMPLOYERS, EMPLOYEES, AND PAYROLL
Employer Business Establishments
Number of Employees*
Annual Payroll ($1,000)
2008
2009
2010
2011
2012
1,127
15,925
493,543
1,089
15,068
492,851
1,091
15,655
528,772
1,107
15,706
508,471
1,073
15,418
494,531
*Paid employees for pay period including March 12. Note: Includes ZIP codes 85635, 85636, and 85650. Does
not include government sector. Source: U.S. Census Bureau and the Cochise College Center for Economic
Research.
MEDIAN ANNUAL WAGES (2013)
MEDIAN HOURLY WAGES (2013)
$30.00
$60,000
$25.00
$50,000
$20.00
$40,000
$15.00
$30,000
$10.00
$20,000
$ 5.00
$10,000
$20.02
$16.58
$16.43
$16.87
$41,658
Sierra Vista
$34,494
$34,167
Cochise County
Arizona
$35,090
$ 0.00
$ 0.00
Cochise County
Arizona
United States
Source: U.S. figures are reported by the U.S. Bureau of Labor Statistics.
State and county figures are reported by Arizona Office of Employment
and Population Statistics. City figures are estimated by the Cochise
College Center for Economic Research using a census ratio model.
Sierra Vista
NON-FARM PAYROLL EMPLOYMENT (COCHISE COUNTY)
2014
2013
CHANGE
Total Non-farm
34,150
34,750
-600
-1.7
Total Private
% CHANGE
22,375
22,650
-275
-1.2
Goods Producing
1,675
1,725
-50
-2.9
Construction*
1,150
1,175
-25
-2.1
Manufacturing
525
550
-25
-4.5
Service-Providing
32,475
33,025
-550
-1.7
20,700
20,925
-225
-1.1
Trade, Transportation, and Utilities 5,900
5,950
-50
-0.8
375
-25
-6.7
Private Service-Providing
Information
Financial Activities
350
1,025
975
50
5.1
Professional and Business Services 4,000
4,225
-225
-5.3
Educational and Health Services
4,775
4,725
50
1.1
Leisure and Hospitality
3,750
3,750
0
0.0
Other Services
900
925
-25
-2.7
11,775
12,100
-325
-2.7
Federal Government
5,250
5,525
-275
-5.0
State and Loca Government
6,525
6,575
-50
-0.8
Government
United States
Source: U.S. figures are reported by the U.S. Department of Labor. State
and county figures are reported by the Arizona Office of Employment
and Population Statistics. City figures are estimated by the Cochise
College Center for Economic Research using a census ratio model.
*Includes mining. Note: Numbers are rounded to the nearest 25. Discrepancies are due to rounding. Source:
Arizona Office of Employment and Population Statistics and Cochise College Center for Economic Research.
23
24
Commerce
Sales Outlook
The largest threat to Cochise County’s economy comes from defense budget cuts impacting Fort
Huachuca, which are the natural upshot of winding down wars in Iraq and Afghanistan. While the rest of the
state and nation suffered through severe effects of the Great Recession, Cochise County was buffered from
the worst of it due to increased defense spending on the fort and its missions, along with indirect and induced
impacts of that spending. Those increases were principally tied to the wars. Defense cuts, and the uncertainty
they create, are likely to continue to hinder economic improvement in Sierra Vista and Cochise County. As
federal sequestration and associated federal employee furloughs took effect in late 2013, continuing through
2014, Sierra Vista’s retail sales, which had been on a path of recovery following five years of decline, reversed
direction with sales falling in nine of the first 11 months of 2014. As of early 2015, there was no sign of
recovery of the city’s retail market.
AVERAGE ANNUAL DAILY TRAFFIC COUNT
PROJECTED
ROUTE
LOCATION
2010
2011
2012
2013
2030
SR90
Ft Huachuca (N Gate) to Ft Huachuca (E Gate) 19,000 17,821 17,239 16,340
23,000
SR90
Fort Huachuca (East Gate) to 7th St
20,500 17,474 15,509 15,133
25,000
SR90
7th Street to Coronado Dr/San Xavier Rd
19,500 18,450 15,457 15,319
24,500
SR90
Coronado/San Xavier to Charleston/MLK Pkwy 17,000 14,873 14,461 13,747
26,000
SR90
Charleston Rd/MLK Pkwy to SR 92/Fry Blvd
17,000 14,873 14,461 13,747
26,000
SR90
SR 92/Fry to Giulio Cesare/Avenida Del Sol
19,000 18,012 17,933 17,378
27,000
SR90
Giulio Cesare/Avenida Del Sol to Moson Rd
9,800
9,186
8,681
8,273
13,000
SR90
Moson Rd to SR 80
4,100
3,737
3,639
3,285
5,600
SR92
SR 90/Fry Blvd to East Foothills Dr
30,000 29,546 24,282 25,866
48,000
SR92
East Foothills Dr to Snyder Rd
31,500 31,866 25,447 25,330
46,000
SR92
Snyder Blvd to Avenida Cochise
27,000 25,841 24,609 25,161
34,000
SR92
Avenida Cochise to Buffalo Soldier Trail
22,000 21,357 20,327 20,805
37,000
SR92
Buffalo Soldier to Glenn Ave/Kachina Trail
22,500 22,134 19,994 20,478
36,000
SR92
Glenn/Kachina to Ramsey Canyon/Ramsey Rd 19,000 18,946 17,877 17,688
28,000
SR92
Ramsey Canyon/Rd to Hereford Rd - Nicksville 10,500 10,602 10,532 10,525
14,500
Note: Figures represent the average number of vehicles traveling each day in both directions. Source: Arizona Department of
Transportation.
One factor that has helped the local economy is construction of a new, 100-bed hospital in Sierra Vista
scheduled to open as Canyon Vista Medical Center in April 2015. During construction, the new hospital gave
a boost to employment in the local construction industry, as well as struggling area hospitality industries
(accommodation and restaurant and bar) as specialized work crews were brought in for the project. Once
open, it is estimated the new hospital will employ 100 additional workers. In the longer run, the new hospital
will serve as an economic development asset to lure new businesses and retirees to the area, which will help
in the economic recovery. In the short run, however, the area can expect to see a decline in hospitality sales
as construction winds down in 2015, erasing the growth trend in those industries seen in 2014. Completion
of the hospital will also directly impact the local construction industry and ripple throughout the economy
dampening sales across industries.
Further impacting the area’s accommodation industry is the Department of the Army's Privatized Army
Lodging (PAL) initiative, which will result in a net increase of 116 rooms on Fort Huachuca providing
competition to off-post facilities in an already struggling market. In addition to travelers on official business
at the fort, on-post accommodation facilities are now open to members of the general public with no
affiliation with Department of Defense. In 2014, the new 243-room Candlewood Suites hotel opened on post
as part of the PAL initiative. The fort will also see remodeling of its previous Army-operated lodging facilities
COCHISE COUNTY GROSS DOMESTIC
PRODUCT (GDP)
YEAR
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
REAL GDP*
3,262
3,254
3,355
3,484
3,723
3,814
3,943
3,946
4,060
4,158
4,127
3,967
3,916
GROWTH (%)
——
-0.2
3.1
3.8
6.9
2.4
3.4
0.1
2.9
2.4
-0.7
-3.9
-1.3
*Millions of chained 2009 dollars. Source: U.S. Bureau of Economic Analysis.
SIERRA VISTA SALES TAX REVENUE
INDUSTRY
Construction
Accommodation
Wholesale Trade
Services
Real Estate, Rental & Leasing
Restaurant & Bar
Finance & Insurance
Other
Retail Trade
Arts & Entertainment
Transporting & Warehousing
Manufacturing
Communications & Utilities
TOTAL
2014
$1,290,134
$820,287
$279,680
$568,007
$1,162,696
$1,750,709
$14,714
$113,925
$9,161,861
$8,332
$6,349
$230,556
$1,498,588
$16,908,833
2013
$980,450
$698,530
$176,836
$528,096
$1,140,285
$1,739,936
$11,078
$111,319
$9,160,440
$7,754
$8,017
$232,444
$1,558,825
$16,354,005
GROWTH ($)
$309,684
$121,757
$102,844
$39,911
$22,411
$10,773
$3,636
$2,606
$1,421
$578
-$1,668
-$1,888
-$60,237
$554,828
Source: Arizona Department of Revenue and Cochise College Center for Economic Research.
GROWTH (%)
31.6
17.4
58.2
7.6
2.0
0.6
32.8
2.3
0.0
7.5
-20.8
-0.8
-3.9
3.4
25
26
to be branded as Holiday Inn Express with a total of 160 rooms. Once Holiday Inn Express is open, there will
be 403 rooms available on post for use by those on official business, as well as members of the general public,
compared to 287 before the PAL initiative, which were limited to those affiliated with the military. Other
policy changes regarding use of off-post lodging facilities by military personnel temporarily assigned to the
fort for training will continue to reduce demand for off-post lodging.
On the upside, threats emerging from the Middle East drawing a U.S. military response in late 2014 and
into 2015 may cause national policymakers to reconsider levels of military spending reductions, which could
impact military intelligence, unmanned aerial systems, and cyber-security missions at Fort Huachuca.
RETAIL SALES
CHANGE (%)
INFLATION
ADJUSTED
GROWTH (%)
SIERRA
VISTA
CHANGE (%)
INFLATION
ADJUSTED
GROWTH (%)
-4.5
-4.2
$504,423,943
-1.7
-1.4
YEAR
COCHISE
COUNTY
2009
$739,994,716
2010
$724,134,017
-2.1
-3.8
$507,068,457
0.5
-1.1
2011
$738,394,565
2.0
-1.2
$495,431,943
-2.3
-5.5
2012
$786,600,901
6.5
4.5
$500,704,057
1.1
-1.0
2013
$810,061,630
3.0
1.5
$525,392,914
4.9
3.5
2014*
$717,401,409
-0.6
-2.3
$466,559,991
-0.4
-2.1
*Jan-Nov only; comparisons to same period one year prior. Note: Inflation-adjusted growth is calculated using
the inflation rates as determined by the Consumer Price Index (CPI-U). Data shown are estimates.
RESTAURANT & BAR SALES
INFLATION
ADJUSTED
GROWTH (%)
CHANGE (%)
2009
$128,393,451
-0.1
0.3
$67,166,692
1.7
2.1
2010
$130,507,965
1.6
0.0
$70,375,231
4.8
3.1
YEAR
SIERRA
VISTA
INFLATION
ADJUSTED
GROWTH (%)
COCHISE
COUNTY
CHANGE (%)
2011
$134,364,426
3.0
-0.2
$74,541,692
5.9
2.8
2012
$131,290,836
-2.3
-4.4
$68,999,308
-7.4
-9.5
2013
$132,527,859
0.9
-0.5
$66,362,692
-3.8
-5.3
2014*
$125,313,409
3.1
1.4
$61,755,944
1.6
-0.1
ACCOMMODATION SALES
YEAR
COCHISE
COUNTY
CHANGE (%)
INFLATION
ADJUSTED
GROWTH (%)
CHANGE (%)
INFLATION
ADJUSTED
GROWTH (%)
2009
$41,243,050
-9.3
-9.0
$22,499,564
-2.4
-2.0
2010
$45,357,394
10.0
2011
$40,863,664
-9.9
8.3
$25,337,345
12.6
11.0
-13.1
$23,581,436
-6.9
-10.1
SIERRA
VISTA
2012
$34,680,677
-15.1
-17.2
$17,425,818
-26.1
-28.2
2013
$30,956,346
-10.7
-12.2
$12,746,873
-26.9
-28.3
2014*
$29,077,894
-0.5
-0.6
$14,099,699
18.2
16.5
Depending on the nature and duration of U.S. involvement in the region, the fort may see drawdown efforts
level off, or may even see an uptick in activity given the relevancy of the fort’s missions to counterterrorism
and related efforts.
Also on the positive side, as state and national economies continue to recover the area is likely to see a
resumption of the influx of retirees as seen in past years due to improving housing markets nationwide that
allow for greater mobility; increasing wealth (e.g., home equity, 401k, etc.) encouraging retirement; lower
home prices in the area attracting those looking to maximize the value of fixed incomes; and the opening of
the new hospital, making the area more attractive to those needing access to quality health care.
RETAIL OUT-SHOPPING
BY SIERRA VISTA RESIDENTS (2011)
SIERRA VISTA BUSINESS LICENSES
New Licenses
Cancelled/Non-renewed Licenses
Year-end Total Licenses
2010
2011
2012
2013
2014
375
408
402
364
370
297
151
130
60
180
3,272 3,529 3,801 4,105 4,295
Source: City of Sierra Vista
SIERRA VISTA AREA BUSINESS ESTABLISHMENTS
INDUSTRY
2008
Accommodation & food services
Admin, support, waste mgmt, remediation services
Arts, Entertainment, & Recreation
Construction
2009
2010
2011
2012
104
98
106
111
106
70
68
67
70
67
12
10
12
10
12
112
99
89
93
86
Educational Services
18
17
14
18
20
Finance & Insurance
69
65
63
62
62
173
175
176
175
168
0
0
1
2
0
18
18
17
18
17
4
4
4
4
6
19
18
18
19
15
1
1
1
1
1
Health Care and Social Assistance
Industries not classified
Information
Management of Companies & Enterprises
Manufacturing
Mining, quarrying, and oil and gas extraction
Other services (except public administration)
101
98
109
105
102
Professional, Scientific, and Technical Services
116
114
124
130
120
Real Estate & Rental & Leasing
Retail Trade
Transportation & Warehousing
Utilities
Wholesale Trade
TOTAL
74
67
63
63
67
179
180
173
176
179
24
27
26
25
25
8
6
5
5
6
23
24
23
20
14
1,127 1,089 1,091 1,107 1,073
Note: Data for zip codes 85635, 85636, and 85650; includes only business establishments with employees.
Source: U.S. Census Bureau and Cochise College Center for Economic Research.
CATEGORY OF SALES
Computer hardware/software
Furniture
Music (CDs, tapes, etc.)
Hobby supplies
Video (DVDs, VHS tapes, etc.)
Books
Jewelry
Electronics
Home Furnishings
Sporting goods
Children’s clothing
Appliances
Women’s clothing
Men’s clothing
Auto parts and accessories
Building materials
Beer, wine, and liquor
Hardware
Garden supplies
Health and personal care items
Gasoline
Groceries
OUT-SHOPPING %
48.2
46.7
45.6
45.1
44.3
44.0
44.0
43.1
42.4
37.9
37.1
36.6
36.3
36.1
35.7
32.0
31.1
31.0
28.0
25.1
23.4
22.5
Note: Out-shopping refers to shopping done by residents of the
city at businesses located outside the city. Source: Cochise College
Center for Economic Research (Retail out-shopping survey).
27
28
Real Estate & Construction
Construction on Fort Huachuca
Although Fort Huachuca is part of Sierra Vista city limits through annexation, construction on the
fort, which is federally owned land, is not subject to the city’s building permit process. For that reason, new
construction on the fort is not included in the city or county’s building permit numbers. From 2010 to
2014, residential communities on the fort were constructed by local builders Castle & Cooke Arizona and
R. L. Workman Homes. The overall number of housing units on post dropped from approximately 1,200
in 2010 to 1,139 in 2014 as a result of demolition of older units and construction of fewer units to replace
them. In 2013 and 2014, the new 243-room Candlewood Suites hotel was constructed on the fort; the new
facility opened in late 2014. Under the Department of the Army’s Privatized Army Lodging, the fort will
also see remodeling of its previous lodging facilities to be branded as Holiday Inn Express with a total of
160 rooms. Once both facilities are complete, there will be 403 rooms available on post, compared to 287
before the PAL initiative.
NEW HOME PERMITS
(SINGLE FAMILY RESIDENTIAL)
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
COCHISE COUNTY
1,019
1,129
1,265
1,032
483
423
372
347
319
278
162
209
SIERRA VISTA
595
689
577
427
178
199
197
169
186
169
61
110
Source: U.S. Census Bureau and Cochise College Center for Economic
Research.
SIERRA VISTA AREA
DISTRIBUTION OF HOME PRICES (2014)
MINIMUM
PRICE
MAXIMUM
PRICE
MIDPOINT NUMBER PERCENT OF
PRICE
OF HOMES TOTAL HOMES
$12,500
$56,727
$34,614
73
10.0%
$56,727
$100,955
$78,841
116
15.8%
$100,955
$145,182
$123,068
152
20.7%
$145,182
$189,409
$167,295
163
22.2%
$189,409
$233,636
$211,523
105
14.3%
$233,636
$277,864
$255,750
62
8.5%
$277,864
$322,091
$299,977
34
4.6%
$322,091
$366,318
$344,205
17
2.3%
$366,318
$410,545
$388,432
5
0.7%
$410,545
$454,773
$432,659
3
0.4%
$454,773
$499,000
$476,886
3
0.4%
Note: Includes only those homes listed on Southeast Arizona Multiple
Listing Service and/or Tucson Area Multiple Listing Service. Includes
site-built homes, townhouses, and condominiums. The Sierra Vista Area
includes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone,
Whetstone, and surrounding unincorporated areas. Source: Southeast
Arizona Multiple Listing Service, Tucson Area Multiple Listing Service,
VA Financing
In considering housing affordability in Sierra Vista, it is important to take into account the large
number of active duty military personnel and veterans residing in the area. As of the 2011-2013 American
Community Survey, 27.6 percent of Sierra Vista’s population ages 18 and older are civilian veterans of the
military, more than three times the national level. As of September 2014, approximately 2,300 active duty
military personnel were assigned to the fort, with an additional 350 deployed from the fort to other
locations worldwide. This is important to housing market analysis since most active duty military personnel
and veterans finance their homes using Veterans Administration (VA) guaranteed loans. VA loans continue
to offer zero-down financing, even as loan paperwork and credit requirements have increased significantly
in recent years and debt-to-income ratios have become more restrictive. The large number of VA eligible
buyers creates an affordability bonus since a major obstacle for many buyers, especially first-time buyers, is
the down payment.
COCHISE COUNTY HOME SALES (SITE-BUILT)
YEAR
VOLUME
CHANGE
IN
VOLUME (%)
2004
1,591
——
MEDIAN
PRICE
MEDIAN
PRICE
CHANGE (%)
AVERAGE
SALE/ASKING
PRICE (%)
AVERAGE
PRICE
SQ FT
AVERAGE
PRICE SQ FT
CHANGE (%)
AVERAGE
DAYS ON
MARKET
FORECLOSURES
(% OF SALES)
$150,000
——
97.8
$92.74
——
111
1.5
2005
1,807
13.6
$186,000
24.0
98.4
$113.52
22.4
107
0.9
2006
1,446
-20.0
$205,250
10.3
97.6
$127.11
12.0
114
1.8
2007
1,289
-10.9
$206,579
0.6
96.4
$122.44
-3.7
134
3.8
2008
1,044
-19.0
$195,000
-5.6
95.7
$115.42
-5.7
150
11.4
2009
1,049
0.4
$189,000
-3.1
95.5
$110.00
-4.7
148
14.0
2010
1,078
2.8
$173,250
-8.3
94.6
$98.40
-10.5
144
24.7
2011
1,048
-2.8
$156,000
-10.0
94.6
$88.82
-9.7
157
30.0
2012
1,084
3.4
$146,500
-6.1
93.9
$84.51
-4.9
162
26.4
2013
1,181
8.9
$139,900
-4.5
94.6
$82.13
-2.8
156
27.6
2014
1,144
-3.1
$132,000
-5.6
95.2
$79.85
-2.8
154
24.8
Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includes townhouses and
condominiums. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise College Center for Economic Research.
SIERRA VISTA AREA HOME SALES (SITE-BUILT)
YEAR
VOLUME
CHANGE
IN
VOLUME (%)
MEDIAN
PRICE
MEDIAN
PRICE
CHANGE (%)
AVERAGE
SALE/ASKING
PRICE (%)
AVERAGE
PRICE
SQ FT
AVERAGE
PRICE SQ FT
CHANGE (%)
AVERAGE
DAYS ON
MARKET
FORECLOSURES
(% OF SALES)
2004
1,263
——
$162,500
——
98.4
$97.25
——
103
0.7
2005
1,495
18.4
$199,900
23.0
99.1
$118.67
22.0
101
0.5
2006
1,120
-25.1
$216,713
8.4
98.1
$132.77
11.9
110
1.1
2007
978
-12.6
$217,479
0.4
96.9
$128.48
-3.2
135
2.3
2008
796
-18.6
$209,500
-3.7
96.1
$122.31
-4.8
146
7.0
2009
815
2.4
$197,000
-6.0
96.2
$114.82
-6.1
141
11.5
2010
785
-3.7
$194,463
-1.3
95.8
$106.67
-7.1
136
20.8
2011
752
-4.2
$179,995
-7.4
95.5
$97.04
-9.0
158
25.5
2012
733
-2.5
$168,761
-6.2
95.5
$92.47
-4.7
166
22.5
2013
781
6.5
$162,000
-4.0
96.0
$89.96
-2.7
147
25.2
2014
779
-0.3
$147,617
-8.9
96.6
$84.97
-5.5
151
24.6
Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includes townhouses and
condominiums. The Sierra Vista Area includes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone, Whetstone, and surrounding unincorporated areas.
Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise College Center for Economic Research.
29
30
Affordable Housing Developments
A focus of the city in recent years has been affordable housing. In the city’s West End, the Crossing Point
community, developed in partnership with the Sierra Vista Industrial Development Authority, is a 57-unit
affordable housing development. The Crossing Point community offers moderately priced two-story, threeand four-bedroom homes with down payment assistance for those who qualify. Another affordable housing
development, also in the city’s West End, is Casa del Sol Apartments, an 88-unit, multifamily affordable senior
rental housing development completed in late 2012.
Outlook
The large volume of foreclosed homes offered at lower prices will continue to dampen demand for new
home construction in Sierra Vista and countywide through 2015 and into 2016. Isolated signs, however,
suggest the problem may be moderating indicating accelerated improvement perhaps by late 2015. As
foreclosures gradually clear from the market, that will place upward pressure on home prices and downward
pressure on sales volume of existing homes.
COCHISE COUNTY HOME SALES (MANUFACTURED HOMES)
YEAR
VOLUME
CHANGE
IN
VOLUME (%)
2004
234
——
MEDIAN
PRICE
MEDIAN
PRICE
CHANGE (%)
AVERAGE
SALE/ASKING
PRICE (%)
AVERAGE
PRICE
SQ FT
AVERAGE
PRICE SQ FT
CHANGE (%)
AVERAGE
DAYS ON
MARKET
FORECLOSURES
(% OF SALES)
$76,000
——
93.7
$53.28
——
132
11.4
2005
290
23.6
$91,000
19.7
96.5
$65.41
22.8
131
6.2
2006
229
-21.0
$101,050
11.0
95.1
$73.25
12.0
129
1.4
2007
211
-7.7
$110,000
8.9
94.1
$73.52
0.4
147
5.5
2008
140
-33.9
$105,850
-3.8
93.5
$68.79
-6.4
158
11.8
2009
113
-19.1
$97,000
-8.4
93.0
$63.36
-7.9
164
22.2
2010
169
49.6
$71,000
-26.8
90.6
$55.67
-12.1
147
36.7
2011
156
-7.7
$58,250
-18.0
92.2
$46.14
-17.1
156
47.4
2012
202
29.5
$53,000
-9.0
90.4
$41.49
-10.1
169
43.6
2013
247
22.3
$59,500
12.3
92.6
$40.60
-2.1
151
37.2
2014
265
7.3
$56,000
-5.9
92.1
$41.07
1.2
137
29.4
Note: Includes only those homes listed on Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service.
Includes mobile homes. Source: Southeast Arizona Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise College Center for Economic Research.
SIERRA VISTA AREA HOME SALES (MANUFACTURED HOMES)
VOLUME
CHANGE
IN
VOLUME (%)
2004
200
——
$80,360
——
94.9
$56.30
——
123
13.6
2005
258
29.3
$97,000
20.7
96.8
$66.86
18.8
120
5.3
YEAR
MEDIAN
PRICE
MEDIAN
PRICE
CHANGE (%)
AVERAGE
SALE/ASKING
PRICE (%)
AVERAGE
PRICE
SQ FT
AVERAGE
PRICE SQ FT
CHANGE (%)
AVERAGE
DAYS ON
MARKET
FORECLOSURES
(% OF SALES)
2006
197
-23.6
$110,000
13.4
95.5
$75.36
12.7
117
1.7
2007
177
-10.5
$115,500
5.0
94.5
$75.19
-0.2
140
5.2
2008
118
-33.1
$115,000
-0.4
94.3
$69.56
-7.5
156
11.2
2009
102
-13.6
$103,900
-9.7
94.3
$65.81
-5.4
165
22.0
2010
109
6.9
$69,000
-33.6
92.2
$56.90
-13.5
142
37.6
2011
101
-7.3
$60,000
-15.0
93.8
$46.52
-18.2
176
48.5
2012
128
26.7
$55,000
-8.3
91.6
$40.66
-12.6
185
47.7
2013
147
14.8
$59,300
7.8
93.2
$39.50
-2.9
166
41.5
2014
143
-2.7
$55,000
-7.3
92.9
$38.43
-2.7
130
32.9
Note: Includes only those homes listed on Southeast Arizona Multiple Listing Service and/or Tucson Area Multiple Listing Service. Includes mobile homes. The Sierra
Vista Area includes Sierra Vista, Hereford/Palominas, Huachuca City, Tombstone, Whetstone, and surrounding unincorporated areas. Source: Southeast Arizona
Multiple Listing Service, Tucson Area Multiple Listing Service, and Cochise College Center for Economic Research.
As a result of the foreclosure problem, homes in Sierra Vista and countywide have been exceptionally
affordable. Sierra Vista’s Housing Affordability Index has remained well above 200, indicating a family with
the median income has more than twice the income necessary to qualify for a conventional loan covering 80
percent of a median-priced, single-family home. As foreclosures clear, there will be more demand for new
homes as prices of existing homes rise. That could lead to a sustained turnaround in new home construction
going into 2016.
In the longer term, Castle & Cooke Arizona plans to develop 2,000 acres in the city. The planned Tribute
community will consist of a mixture of single-family lots ranging from 3,150 to more than 20,000 square feet;
multifamily units including apartments, townhouses, and condominiums; and commercial and institutional
development. The specific plan also provides for a linear park, community and recreational opportunities,
and open space. It incorporates neo-traditional neighborhood design, including houses oriented to the street
and sidewalk, pedestrian-friendly design, neighborhood parks, and mixed use development. The
development is not likely to proceed until housing market conditions at the national, state, and local levels
see sustained improvement.
HOUSING AFFORDABILITY INDEX
The HAI gauges whether a family with the area’s median income would qualify for a mortgage on a median-priced home. In
interpreting the HAI, a value of 100 indicates a family with the median income has exactly enough income to qualify for a
mortgage on a median-priced home, assuming a 30-year conventional fixed-rate mortgage, 20 percent down payment, and a
qualifying income ratio of 25 percent (i.e., the monthly principal and interest payment cannot exceed 25 percent of the family’s
monthly income). An HAI above 100 indicates that a family earning the median income has more than enough income to qualify
for a mortgage on a median-priced home.
SIERRA VISTA HOUSING STATISTICS
SIERRA VISTA HOUSING AFFORDABILITY INDEX (HAI)
YEAR
MONTHLY
PRINCIPAL AND
AMOUNT
EFFECTIVE
INTEREST
FINANCED INTEREST RATE PAYMENT
MEDIAN FAMILY MEDIAN
INCOME
HOME PRICE
HAI
2009
$65,220
$195,722
$156,578
5.18%
$858
158.4
2010
$64,929
$191,600
$153,280
4.93%
$816
165.8
2011
$67,260
$180,000
$144,000
4.84%
$759
184.6
2012
$64,431
$168,761
$135,009
4.04%
$648
207.1
2013
$69,186
$158,550
$126,840
3.99
$605
238.2
2014p
$69,186
$145,000
$116,000
4.56
$592
243.5
p = preliminary. Note: Based on the median home price for residential homes (site built, manufactured homes,
mobile homes, townhouses, and condominiums) in Sierra Vista sold on Southeast Arizona Multiple Listing
Service and/or Tucson Area Multiple Listing Service. Presumes a 30-year conventional fixed-rate mortgage, a
20 percent down payment, and a 25 percent qualifying income ratio (principal and interest only).
Source: Cochise College Center for Economic Research.
3,000
Number of Units
2,500
2,000
1,500
1,000
500
54
205
Less
than
$200
$200
to
$299
616
1343
2460
$300 $500 $750
to
to
to
$499 $749 $999
Gross Monthly Rent*
2160
Source: U.S. Census Bureau (2011-2013 American Community Survey
5-Year Estimates).
COMMERCIAL BUILDING PERMITS, NEW
BUILDINGS (CITY OF SIERRA VISTA)
SIERRA VISTA RENTAL UNITS
0
Total Housing Units
20,579
Occupied Housing Units (%)
85.2
Owner-occupied (%)
53.8
Renter-occupied (%)
46.2
Homeowner Vacancy Rate (%)
2.6
Rental Vacancy Rate (%)
14.2
Median Monthly Owner Cost (2013 dollars)
1,333
Homeowners Paying 30% or More of Income for Housing (%) 21.4
Median Monthly Gross Rent (2013 dollars)
921
Renters Paying 30% or More of Income for Housing (%)
46.7
951
$1,000 $1,500
to
or
$1,499 more
*Gross rent includes contract rent plus utilities. Note: Includes occupied
rental units only; figures expressed in 2013 dollars. Source: U.S. Census
Bureau (2011-2013 American Community Survey 3-Year Estimates) and
YEAR
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
PERMITS
13
14
40
24
12
15
12
9
3
6
9
VALUATION
$7,305,606
$18,468,233
$61,258,338
$43,160,924
$21,424,347
$43,747,931
$21,276,752
$26,379,585
$12,876,107
$2,555,100
$55,263,806
Note: Valuation does not include value of land. Source: City of Sierra
Vista and Cochise College Center for Economic Research.
31
32
Banking & Financial Services
Sierra Vista is served by five banks: Wells Fargo (www.WellsFargo.com), Bank of America
(www.BankOfAmerica.com), J.P. Morgan Chase (www.Chase.com), National Bank of Arizona
(www.NbArizona.com), and Compass Bank (www.BBVACompass.com). Additionally, Armed Forces Bank
(www.AfBank.com) is located on Fort Huachuca. The area is also served by American Southwest Credit
Union (www.ASCU.org) and several financial services firms.
SIERRA VISTA BANK DEPOSITS,
MARKET SHARE (2014)
J.P. Morgan
Chase Bank
18.5%
BANK DEPOSITS
YEAR
National Bank
of Arizona
16.4%
Bank of America
23.2%
Wells Fargo
34.5%
SIERRA VISTA
AMOUNT CHANGE
($000)
(%)
COCHISE COUNTY
AMOUNT CHANGE
($000)
(%)
2010
551,575
4.4
1,014,793
1.5
2011
569,146
3.2
1,034,039
1.9
2012
614,967
8.1
1,082,302
4.7
2013
668,778
8.8
1,118,042
3.3
2014
754,642
12.8
1,148,049
2.7
Note: Data reflect total deposits as of June 30 each year. Source: Federal
Deposit Insurance Corporation and the Cochise College Center for
Economic Research.
Compass
Bank
7.4%
Note: Data reflect total deposits in the 12 months ended June 30. Source:
Federal Deposit Insurance Corporation and the Cochise College Center
for Economic Research.
BANKRUPTCY FILINGS
(PER 1,000 RESIDENTS)
YEAR
COCHISE COUNTY
ARIZONA
UNITED STATES
2010
2.70
6.69
5.15
2011
2.48
5.68
4.53
2012
1.79
4.39
3.89
2013
1.81
3.55
3.39
2014
1.70
2.98
2.94
Note: Includes all chapters. Source: U.S. Bankruptcy Court, U.S. Census
Bureau, Arizona Office of Employment and Population Statistics, and
Mexico
Naco, Sonora
The town of Naco, Sonora, Mexico shares a border with Naco, Arizona, an unincorporated area of
Cochise County approximately 35 miles southeast of Sierra Vista. The population of Naco, Sonora as of 2010
was approximately 6,400 (according to Mexico’s Instituto Nacional de Estadística y Geografía). Population of
Naco, Arizona as of Census 2010 was 1,046. A 2008 study by University of Arizona indicated 80.1 percent of
Mexican residents entering the United States through Naco did so for the purpose of shopping—second
highest of all land ports in Arizona behind Douglas. The Naco Port of Entry is open 24 hours a day, 7 days a
week to vehicle and pedestrian traffic. Naco is the fourth largest commercial port in Arizona measured by
total value of trade (imports and exports).
REPRESENTATIVE EXCHANGE
RATES: MEXICAN PESO
TO U.S. DOLLAR
2013
2014
January . . . . . . . . . . . . . . . . . . . .12.7094
February . . . . . . . . . . . . . . . . . . .12.7795
March . . . . . . . . . . . . . . . . . . . . .12.3546
April . . . . . . . . . . . . . . . . . . . . . . .12.1550
May . . . . . . . . . . . . . . . . . . . . . . .12.8035
June . . . . . . . . . . . . . . . . . . . . . .13.0235
July . . . . . . . . . . . . . . . . . . . . . . .12.8464
August . . . . . . . . . . . . . . . . . . . . .13.3415
September . . . . . . . . . . . . . . . . . .13.1747
October . . . . . . . . . . . . . . . . . . . .13.0067
November . . . . . . . . . . . . . . . . . .13.0925
December . . . . . . . . . . . . . . . . . .13.0652
January . . . . . . . . . . . . . . . . . . . .13.3769
February . . . . . . . . . . . . . . . . . . .13.2379
March . . . . . . . . . . . . . . . . . . . . .13.0549
April . . . . . . . . . . . . . . . . . . . . . . .13.1356
May . . . . . . . . . . . . . . . . . . . . . . .12.8609
June . . . . . . . . . . . . . . . . . . . . . .12.9712
July . . . . . . . . . . . . . . . . . . . . . . .13.2269
August . . . . . . . . . . . . . . . . . . . . .13.0763
September . . . . . . . . . . . . . . . . . .13.4330
October . . . . . . . . . . . . . . . . . . . .13.4773
November . . . . . . . . . . . . . . . . . .13.7219
December . . . . . . . . . . . . . . . . . .14.7348
Note: As of the last business day of each month. Rates
vary daily. Source: International Monetary Fund.
33
34
US-MEXICO BORDER CROSSINGS (NACO PORT)
TRUCKS
1,661
2,512
3,376
3,728
3,947
2009
2010
2011
2012
2013
LOADED
EMPTY
TRUCK
TRUCK
CONTAINERS CONTAINERS
1,066
619
1,423
1,266
1,530
2,406
1,622
2,542
1,882
2,397
BUSES
28
37
21
21
17
BUS
PASSENGERS
730
950
254
547
554
PERSONAL
VEHICLES
278,960
262,809
236,330
270,416
284,677
PERSONAL
VEHICLE
PASSENGERS
660,822
511,573
465,186
493,205
509,178
PEDESTRIANS
81,815
78,748
79,115
72,896
81,146
Note: Includes only those crossing from Mexico into the United States. Source: U.S. Department of Transportation.
INTERNATIONAL TRADE WITH MEXICO (NACO PORT)
YEAR
TOTAL ($)
2009
9,324,342
CHANGE (%) EXPORTS ($) CHANGE (%) IMPORTS ($) CHANGE (%)
-43.7
6,310,328
-53.5
3,014,014
0.8
2010
18,432,532
97.7
15,589,155
147.0
2,843,377
-5.7
2011
39,380,151
113.6
35,079,914
125.0
4,300,237
51.2
2012
55,503,983
40.9
47,216,425
34.6
8,287,558
92.7
2013
73,298,574
32.1
58,180,118
23.2
15,118,456
82.4
Source: U.S. Department of Transportation.
Agua Prieta, Sonora
The city of Douglas, Arizona shares a border with Agua Prieta, Sonora, Mexico, approximately 50 miles
southeast of Sierra Vista. As of 2010, Agua Prieta’s population was just under 80,000 (according to Mexico’s
Instituto Nacional de Estadística y Geografía). A 2008 University of Arizona study indicated 81.6 percent of
Mexican residents entering the United States through Douglas did so for the purpose of shopping—the
highest of all land ports in Arizona.
Douglas is the second largest commercial port in Arizona measured by total value of imports and
exports. The Douglas Port of Entry is open 24 hours a day, 7 days a week to vehicle and pedestrian traffic. In
2013, U.S. Customs and Border Protection implemented the Secure Electronic Network for Travelers Rapid
Inspection (SENTRI) program to allow expedited entry into United States through the Douglas Port for preapproved, low-risk travelers. The new SENTRI lane reduces wait times through streamlined customs and
immigration processing (for more information, visit www.CBP.gov).
There are more than 20 maquiladoras (twin factories with facilities on both sides of the border) in Agua
Prieta and Douglas, with Agua Prieta serving as the manufacturing center and Douglas the warehouse
distribution center. Major industrial employers in Agua Prieta include Levolor Kirsh, Commercial Vehicle
Group, Takata, Velcro USA, Standex International, and Alstyle Apparel & Activewear (which built a 700,000
square-foot manufacturing facility in 2011 that will employ 3,000 workers at full capacity).
US-MEXICO BORDER CROSSINGS (DOUGLAS PORT)
2009
2010
2011
2012
2013
TRUCKS
25,162
25,504
29,883
31,636
32,497
LOADED
EMPTY
TRUCK
TRUCK
CONTAINERS CONTAINERS
15,860
8,718
15,004
9,337
17,377
10,484
17,419
11,836
17,231
12,963
BUSES
1,979
2,182
1,987
2,065
2,076
BUS
PASSENGERS
13,572
13,785
14,577
19,670
14,544
PERSONAL
VEHICLES
1,514,446
1,431,813
1,393,181
1,405,122
1,470,933
PERSONAL
VEHICLE
PASSENGERS
3,893,330
2,892,520
2,615,027
2,610,492
2,703,712
Note: Includes only those crossing from Mexico into the United States. Source: U.S. Department of Transportation.
PEDESTRIANS
1,314,745
1,096,084
1,030,357
1,198,838
1,804,110
INTERNATIONAL TRADE WITH MEXICO (DOUGLAS PORT)
TOTAL ($)
CHANGE (%)
2009
613,864,270
2010
846,359,513
YEAR
EXPORTS ($)
CHANGE (%)
IMPORTS ($) CHANGE (%)
-13.6
251,096,720
-19.0
362,767,550
-9.4
37.9
333,651,867
32.9
512,707,646
41.3
2011
1,185,576,639
40.1
565,295,027
69.4
620,281,612
21.0
2012
1,293,028,750
9.1
742,614,965
31.4
550,413,785
-11.3
2013
1,426,764,162
10.3
868,944,656
17.0
557,819,506
1.3
Source: U.S. Department of Transportation and Cochise College Center for Economic Research.
Economic Impact of Mexican Visitors
A 2008 study by University of Arizona found Mexican visitors to Cochise County accounted for 5.3
percent of countywide taxable sales. Visitors spent an annual $186.4 million in Cochise County, with 55
percent of that in retail stores, 24.1 percent in grocery stores, and 7.3 percent in restaurants. Accounting for
indirect and induced impacts, Mexican visitors were responsible for $211.8 million in sales, 1,763 jobs, and
$36.5 million in income countywide. Statewide direct expenditures by Mexican visitors crossing through
Douglas totaled $466.4 million ($253 per party) according to the study. Those entering through Naco spent
$98.4 million ($277 per party) while in Arizona. Although statewide direct expenditures totaled $564.8
million for both ports, only $186.4 million (about one-third) was spent within Cochise County, with more
than two-thirds of that spent in Douglas.
Mexican
visitors were
responsible for $211.8
million in sales, 1,763
jobs, and $36.5 million
in income
countywide.
35
36
Fort Huachuca
Photo: Fort Huachuca Public Affairs
Fort Huachuca, Cochise County’s largest employer, is an active U.S. Army installation located in Sierra
Vista. The fort provides critical resources, infrastructure, and services to more than 50 unique tenant units
and missions with national-level requirements, including three of the fastest-growing missions in
Department of Defense: military intelligence, cyber-security, and unmanned aircraft systems training and
operations. The main and auxiliary installation properties cover more than 100,000 acres and the fort
manages 964 square miles of restricted air space and 2,500 square miles of electronic ranges outside
installation boundaries. The fort maintains, operates, or oversees more than 8.2 million square feet of
operational facilities, 1,136 family housing units, three remote airstrips, and three accommodation schools.
Libby Army Airfield with its 12,001 foot concrete runway is the one of the Army’s busiest continental U.S.
airfields.
As of September 2014, approximately 2,300 active duty military personnel were assigned to Fort
Huachuca, with an additional 350 deployed from the fort to other locations worldwide. There are also
approximately 2,600 military trainees (students) temporarily assigned to the fort for training on any given
day with more than 8,000 trained on site each year. Fort Huachuca also directly employs approximately 3,500
civilian workers and contracts with numerous area firms including General Dynamics, Northrup Grumman,
ManTech International, Raytheon, TASC, Booz Allen Hamilton, and others employing several thousand
workers. The resident population of Fort Huachuca (those residing on post) was 3,786 as of January 2015,
which includes 1,072 military personnel and 2,714 family members residing in on-post family housing, along
with 1,900 unmarried or unaccompanied military personnel residing in troop billets, including students
assigned temporarily for training. Many military personnel and their families also reside in surrounding
communities.
In 2008, the Maguire Company released its Economic Impact of Arizona’s Principal Military Operations
report. The report estimated the direct, indirect, and induced impact of Fort Huachuca on Cochise County
at $2.4 billion annually, nearly 42 percent of which was attributable to indirect and induced economic activity
in the county’s retail trade and services industries. The employment impact was estimated at 26,921 jobs
countywide, which includes the fort’s direct employees, as well as those employed due to government
contracts and spending by the fort and its employees. The report also estimated the fort generated $23.2
million per year in local sales tax and $17.3 million in local property tax. The study is scheduled to be updated
in 2014-15.
For more information on Fort Huachuca, visit www.Army.Mil/Huachuca.
Agriculture
Agriculture is a significant part of the Cochise County economy. Top crop items are forage land, corn for
grain, pecans, dry edible beans, and cotton. Top livestock are cattle and calves, layers, sheep and lambs, bee
colonies, and horses and ponies. Cochise County offers numerous agritourism opportunities including
farmers markets throughout the county, U-PICK Farms in the Sulphur Springs Valley area, and wineries and
winetasting events. For more information, visit www.ExploreCochise.com.
Sierra Vista Farmers Market
Sierra Vista Farmers Market provides access to locally raised food to contribute to the success of local
food growers and producers and strengthen the local food economy. Products include produce, meat, fish,
eggs, cheese, baked goods, and specialty products, as well as plants, native trees, natural body care, locally
roasted coffees, crafts, and entertainment by local musicians. For more information, visit
www.SierraVistaFarmersMarket.com.
Cochise County Wineries
Wine production, sales, and tasting rooms have been a growing industry in Cochise County in recent
years. According to Arizona Wine Growers Association (www.ArizonaWine.org), the Willcox area of Cochise
County produces the largest quantity of grapes in Arizona. Vineyards are located in Willcox, Benson, Pearce,
Cochise, and surrounding areas. In 2013, Aridus Wine Company opened a custom crush facility in Willcox,
which processes, ferments, and barrel-stores grapes from various vineyards. The Willcox Wine Trail has
several vineyards located in the foothills of the Chiricahua Mountains for those interested in wine tours.
Tasting rooms are located in Bisbee, Sierra Vista, Tombstone, and Willcox. For more information, visit
www.ExploreCochise.com.
Cochise County Fair
The Cochise County Fair is held each September at Cochise County Fairgrounds (just north of Douglas)
offering agricultural, commercial, educational, and entertainment activities including a live rodeo. Exhibits
include livestock, buildings, dogs, small stock, and horses. The carnival at the fair offers rides, attractions,
games, and food booths. For more information, visit CochiseCountyFair.org.
37
38
COCHISE COUNTY AGRICULTURE
2012
Farms
Number
Land (acres)
Average farm size (acres)
Estimated market value of land and buildings
Average per farm (dollars)
2007
CHANGE
% CHANGE
1,093
1,065
28
2.6%
916,672
824,226
92,446
11.2%
839
774
65
8.4%
1,175,308 1,475,858
-300,550
-20.4%
-26.5%
Average per acre (dollars)
1,401
1,907
-506
Estimated market value: machinery and equipment
81,234
77,792
3,442
4.4%
Farms by size
1 to 9 acres
182
122
60
49.2%
10 to 49 acres
297
252
45
17.9%
50 to 179 acres
232
285
-53
-18.6%
180 to 499 acres
137
149
-12
-8.1%
500 to 999 acres
56
76
-20
-26.3%
189
181
8
4.4%
1,000 acres or more
Total cropland
Irrigated land
Market value of agricultural products sold
Farms by value of sales
Farms
496
496
0
0.0%
Acres
123,311
141,156
-17,845
-12.6%
Farms
374
368
6
1.6%
Acres
65,483
67,598
-2,115
-3.1%
Total ($1,000)
149,998
117,130
32,868
28.1%
137,235
109,981
27,254
24.8%
Less than $2,500
420
490
-70
-14.3%
$2,500 to $4,999
159
119
40
33.6%
$5,000 to $9,999
103
91
12
13.2%
$10,000 to $24,999
133
120
13
10.8%
$25,000 to $49,999
85
87
-2
-2.3%
$50,000 to $99,999
48
50
-2
-4.0%
34.3%
$100,000 or more
Hired farm labor
Workers
Payroll ($1,000)
Source: U.S. Department of Agriculture and the Cochise College Center for Economic Research.
145
108
37
1,375
1,382
-7
-0.5%
16,195
10,359
5,836
56.3%
Tourism
Tourism is an important component of the Sierra Vista and Cochise County economy. As an exportoriented industry it brings dollars to the local area from other regions, generating local jobs, income, and tax
revenue. Area attractions lure hundreds of thousands of visitors annually. According to the Sierra Vista Visitor
Center, there are approximately 1,780 lodging rooms in the city.
The City of Sierra Vista identified tourism as an underdeveloped economic asset in its economic
development documents (Plan for Prosperity and the city council’s 2014-2016 Strategic Leadership Plan). With
increasing focus on tourism promotion, the city identified four key areas for growth: the emergent wine
industry, motorcycle tourism, bicycle tourism, and international tourism (with particular emphasis on
tourism from Mexico and Canada). Still in the planning stage, the city is exploring partnerships with Canyon
Vista Medical Center and the potential to expand medical tourism.
The city’s tourism department has dedicated resources to building regional and industry relationships
across Southern Arizona and Northern Sonora, Mexico, with collaborative plans to leverage the wine industry
as a cross-border/cross-cultural attraction, along with other economic development opportunities related to
the wine industry.
According to the city’s tourism department, bicycling and motorcycling activities nationwide are a
steadily growing tourism market segment and nearby mountains and relatively flat roads with lower traffic
volumes make Sierra Vista and Cochise County an attractive base for two-wheeled activities. Through
collaboration with local bicycle and motorcycle groups, along with targeted advertising, the city is working
to expand its market base in those two visitor markets. Recently, bicycling and motorcycling groups have
made Sierra Vista a central location for regional rides according to the city’s tourism department. The
Chrome Pony Rally, an annual motorcycling event in its second year in 2015, is scheduled for May.
COCHISE COUNTY STATE PARK
VISITATIONS
KARTCHNER CAVERNS
STATE PARK
YEAR
VISITATIONS CHANGE
COCHISE COUNTY NATIONAL PARK VISITATIONS
TOMBSTONE COURTHOUSE
STATE HISTORIC PARK
VISITATIONS
CHANGE
CHIRICAHUA NATIONAL
MONUMENT
YEAR
VISITATIONS
CHANGE
CORONADO NATIONAL
MEMORIAL
VISITATIONS
CHANGE
FORT BOWIE NATIONAL
HISTORIC SITE
VISITATIONS
CHANGE
2009
144,089
-6.0
44,403
-14.5
2009
60,846
7.6
103,811
14.0
9,641
-4.5
2010
123,999
-13.9
49,825
12.2
2010
55,430
-8.9
136,281
31.3
9,491
-1.6
2011
116,757
-5.8
46,037
-7.6
2011
37,030
-33.2
153,040
12.3
8,429
-11.2
2012
137,734
18.0
45,207
-1.8
2012
41,159
11.2
97,579
-36.2
7,966
-5.5
2013
137,268
-0.3
45,790
1.8
2013
39,230
-4.7
88,669
-9.1
7,872
-1.2
2014
153,053
11.5
42,549
-7.1
2014
41,572
6.0
111,420
25.7
6,964
-11.5
*January through November only; percent change based on same period
one year prior. Source: Arizona Office of Tourism and Cochise College
Center for Economic Research.
Source: Arizona Office of Tourism and Cochise College Center for Economic Research.
39
40
Additionally, the tourism department is working with the Sierra Vista Metropolitan Planning Organization
and the city’s community development and public works departments to leverage amenities, ensure
appropriate signage, and create route maps to position Sierra Vista as a bicycle-friendly community to
enhance visitor attraction.
To bolster tourism from Mexico, the city’s tourism department now produces bilingual materials,
targeting advertising to cities in Sonora, Mexico, and works with U.S. and Mexican consulates, Tucson
Hispanic Chamber of Commerce, Arizona-Mexico Commission, and Arizona Office of Tourism
International Marketing and Public Relations to better build cross-border tourism partnerships and directly
attract visitors.
In late 2014, the city contracted North Star Destination Strategies, a nationally recognized community
branding firm, to develop a unique identity for the city, with an expected launch in the second half of 2015.
Part of the city’s economic development efforts, the city’s tourism marketing plans to fully incorporate the
brand to elevate its marketing promotions and support business attraction and retention efforts made by the
city’s economic development department.
COCHISE COUNTY TRAVEL IMPACTS
2008
2010
2011
TOTAL DIRECT TRAVEL SPENDING ($MILLION)
Destination Spending
345.5
342.4
328.7
Other Travel*
29.2
26.4
31.4
Total Direct Spending
374.7
368.8
360.2
VISITOR SPENDING BY COMMODITY PURCHASED ($MILLION)
Accommodations
52.1
51.9
47.2
Food Service
84.1
88.0
83.4
Food Stores
59.5
55.8
52.7
Local Transportation & Gas
50.8
47.2
53.5
22.8
22.9
21.7
Retail Sales
76.1
76.5
70.2
Destination Spending
345.5
342.4
328.7
INDUSTRY EARNINGS GENERATED BY TRAVEL SPENDING ($MILLION)
48.8
48.8
48.9
11.6
10.9
9.7
Retail**
21.1
18.7
17.4
Other Travel*
2.6
1.7
1.7
Total Direct Earnings
84.2
80.2
77.7
INDUSTRY EMPLOYMENT GENERATED BY TRAVEL SPENDING (JOBS)
2,540
2,470
2,420
810
760
700
Retail**
870
750
700
Other Travel*
120
70
60
Total Direct Employment
4,340
4,050
3,890
GOVERNMENT REVENUE GENERATED BY TRAVEL SPENDING ($MILLION)
Local
18.4
18.3
17.5
State
17.7
17.6
17.8
Total Direct Government Revenue 36.1
36.0
35.3
2012
2013p
316.6
33.0
349.6
310.6
31.8
342.4
40.3
80.9
57.2
53.0
20.1
65.1
316.6
35.9
81.5
60.0
50.2
19.6
63.5
310.6
48.3
9.8
16.7
1.8
76.6
49.1
10.0
16.4
2.0
77.5
2,370
650
660
70
3,740
2,370
640
640
70
3,720
16.3
17.0
33.3
15.2
16.1
31.4
Note: Details may not add to totals due to rounding. p = preliminary. *Other Travel includes ground
transportation to other Arizona destinations and travel arrangement services. **Retail includes gasoline.
Source: Dean Runyon Associates and Arizona Office of Tourism.
Area Attractions
Area attractions represent centuries of history, including prehistoric hunting grounds and petroglyphs,
Native American sites and pictographs, 16th Century forts, and Old West townsites. Alongside the region’s
history, Sierra Vista and Cochise County are well known for birding and wildlife viewing opportunities and
are home to numerous attractions, including:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
The Cove (Sierra Vista’s aquatic center)
Henry Hauser Museum
Kartchner Caverns State Park
Butterfield Trail
Dragoon Springs Butterfield Mail Station
Gammons Gulch Ghost Town Movie Set
Holy Trinity Monastery
Amerind Foundation and Museum
Cochise Stronghold
Geronimo Surrender Site
Rucker Canyon Archaeological District
John Slaughter Ranch
Chiricahua Mountains and Chiricahua
National Monument
Arizona’s Sky Islands
American Museum of Natural History’s
Southwestern Research Station
Fort Bowie National Historic Site
Cities of Bisbee, Tombstone, and Douglas
Texas Canyon
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Coronado National Forest and Coronado
National Monument
San Pedro Riparian National Conservation
Area
Fort Huachuca (National Historic Landmark
District)
Lehner Mammoth Kill Site and Murray
Springs Clovis Site
Ramsey Canyon Preserve
Arizona Folklore Preserve
Our Lady of the Sierras Shrine
Spooner’s Arboretum
San Bernardino Wildlife Refuge
Whitewater Draw Wildlife Area
Ghost towns of Charleston, Gleeson, Fairbank,
and Dos Cabezas
Numerous public and private observatories
More than 20 Arizona wineries
Cities of Naco, Agua Prieta, and historic Arizpe
in Sonora, Mexico•
Events
FEBRUARY
MARCH
APRIL
Cochise Cowboy Music & Poetry Gathering / High Desert Gardening
& Landscaping Conference / Hummingbird Stitchers Quilt Guild Show
Cochise Community Creative Writing Celebration / Sierra Vista
Symphony
John Cooper & Perimeter Trail Tour / Men Who Cook / Festival of
the Southwest / Goin’ to the Dogs Show
MAY
Spring Fling Birding Field Trips / Chrome Pony Motorcycle Rally
JULY
Independence Day (July 4) festivities
AUGUST
SEPTEMBER
OCTOBER
DECEMBER
Southwest Wings Birding & Nature Festival
Elks Oktoberfest / City of Sierra Vista Oktoberfest / Dine under
the Stars
Art in the Park / Cars in the Park / Huachuca Gem, Mineral &
Jewelry Show / Brown Canyon Ranch Open House
Christmas Parade / Fort Huachuca Tour of Historic Officers’
Homes / Old World Santas in the Park
For more information on Sierra Vista area attractions and events, visit www.VisitSierraVista.com.
41
42
Renewable Energy
Incentives
SSVEC, which provides electrical service to Sierra Vista and other areas of Cochise County, offers several
residential and commercial incentives to promote use of alternative energy, including solar (photovoltaic
systems and solar water heating) and wind. For more information, visit www.SSVEC.org. Customers may also
qualify for state and federal tax incentives; for more information, visit www.DSIREUSA.org.
National Bank of Arizona Green Returns Program
National Bank of Arizona offers special financing opportunities for renewable energy and efficiency
projects under its Green Returns Banking and Financing program. For more information, visit
www.NBArizona.com.
Community Resources
www.SierraVistaAZ.gov
SIERRA VISTA VISITORS CENTER
www.VisitSierraVista.com
SIERRA VISTA AREA CHAMBER
OF COMMERCE
www.SierraVistaChamber.org
SIERRA VISTA ECONOMIC
DEVELOPMENT FOUNDATION
www.SVEDF.org
ARIZONA DEPARTMENT OF
ECONOMIC SECURITY
www.AzDES.gov
SOUTHEAST ARIZONA
WORKFORCE CONNECTION
www.SeAzWorkforce.org
FORT HUACHUCA
www.Army.mil/Huachuca
ARMED FORCES BANK
www.AfBank.com
SIERRA VISTA INDUSTRIAL
DEVELOPMENT
AUTHORITY/FIRST WEST
PROPERTIES CORPORATION
www.FWPC.net
BANK OF AMERICA
www.BankOfAmerica.com
SIERRA VISTA METROPOLITAN
PLANNING ORGANIZATION
www.SVMPO.org
CHASE
www.Chase.com
COCHISE COLLEGE SMALL
BUSINESS DEVELOPMENT
CENTER
www.Cochise.Edu/SBDC
COMPASS BANK
www.BBVACompass.com
NATIONAL BANK OF ARIZONA
www.NbArizona.com
WELLS FARGO BANK
www.WellsFargo.com
SOUTHEAST ARIZONA
ASSOCIATION OF REALTORS
SeAzRealtor.com
AMERICAN SOUTHWEST
CREDIT UNION
www.ASCU.org
COCHISE COUNTY
www.Cochise.Az.gov
ARIZONA WATER COMPANY
www.AzWater.com
COX COMMUNICATIONS
www.Cox.com
LIBERTY UTILITIES
www.LibertyWater.com
PUEBLO DEL SOL WATER
COMPANY
www.PdsH2o.com
CENTURYLINK
www.CenturyLink.com
SOUTHWEST GAS
www.SWGas.com
SULPHUR SPRINGS VALLEY
ELECTRIC COOPERATIVE
www.SSVEC.org
43
44
About the Center for Economic Research
Cochise College Center for Economic Research (CER), founded in 1995, provides economic
information, analysis, and forecasting to help leaders in the public, private, and nonprofit sectors make better
informed decisions; provides opportunities for Cochise College students to conduct and publish research on
local and regional economic issues; and educates residents of Cochise County on the local, state, and national
economy through presentations, newspaper columns, radio show appearances, and social media. CER hosts
economic outlook luncheons each year in Benson, Bisbee, Douglas, and Sierra Vista and produces four major
publications annually: Benson Economic Outlook, Bisbee Economic Outlook, Douglas Economic Outlook, and
Sierra Vista Economic Outlook (released in conjunction with the luncheons).
CER is a member of Association for University Business and Economic Research (AUBER), the only
community college organization in the nation holding membership. In addition, CER is a U.S. Census Bureau
State Data Center affiliate that receives and disseminates Census Bureau data to local governments and
nongovernmental data users at no charge or on a cost-recovery/reimbursable basis.
Dr. Robert Carreira has served as CER Director since 2005. He holds a Ph.D. in public policy and Master’s
degrees in public administration, education, and international relations (international political economics).
Contact the CER
Center for Economic Research
Cochise College
901 North Colombo Avenue • Sierra Vista, AZ 85635
CER@Cochise.Edu
Center Staff
Dr. Robert Carreira – Director
Iris Routhieaux – Research Assistant
Sierra Vista Economic Advisory Committee
Angela Camara—Fort Huachuca Public Affairs
Rick Coffman—Castle & Cooke, Arizona
Frank Gonzalez—Lawley Automotive Group
Judy Hector—City of Sierra Vista
Angelica Hernandez—Southeast Arizona Workforce Connection
Mignonne Hollis—Sierra Vista Economic Development Foundation
Mary Jacobs—City of Sierra Vista
Frank Moro—First West Properties Corporation
Tom Reardon—First Things First
Mark Schmitt—Cochise College Small Business Development Center
Mary Tieman—Sierra Vista Area Chamber of Commerce
Victoria Yarbrough—City of Sierra Vista

Sierra Vista Outlook - Sierra Vista Business

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