Quarterly Report Fiscal Year nd Quarter

Transcription

1 City of Chandler Quarterly Report Fiscal Year nd Quarter

2 INDEX Table of Contents INTRODUCTION... 3 ECONOMIC DEVELOPMENT OUTLOOK... 5 ECONOMIC TRENDS... 7 RETAIL... 9 INDUSTRIAL/OFFICE DEVELOPMENT TOURISM

3 INTRODUCTION Economic development activity continued on a positive trend during the second quarter. For the quarter ending December 31, 2013, Economic Development staff combined efforts identified 44 leads, and 14 prospects, representing an estimated 3,107 jobs, occupying approximately 670,953 square feet of space and $90.9 million in capital investments. 2nd Quarter Combined Efforts Retail Industrial/Office Total Leads Prospects Jobs 145 2,962 3,107 Square Footage 83, , ,953 Capital Investment $90,937,871 $90,937,871 Retail: During the second quarter, Economic Development Retail staff continued to work with developers, brokers, and shopping center owners on major retail developments while tracking all existing retail centers and tenants, including those projects under construction or planned. Staff continues to work with clients by keeping track of when the construction permits are reviewed and issued. Industrial/Office: During the second quarter, Industrial and Office staff attended several sales missions and prospecting trips to market Chandler s message to a broader audience and provide insight into existing development opportunities in the City of Chandler. Sales missions, trade shows, and prospecting trips provide staff with the chance to discern the type of data and resources the brokerage and development community needs, thereby facilitating the attraction of quality stores, restaurants, companies, and recreational opportunities to Chandler. For, Industrial/Office staff participated in the following activities: Activity Location Date Sister Cities Conference Chandler, AZ October 19, 2013 NBAA Las Vegas, NV October 23, 2013 Corenet Las Vegas, NV October 21-23, 2013 Root the Box Chandler, AZ November 10, 2013 GPEC Sales Mission New York, NY December 5-6, 2013 Tourism: Tourism staff conducted the following trade and media activities for : Activity Location Date Arizona Showcase and September 30 - Hermosillo, Sonora Media Mission October 4, 2013 AOT AZ Media Marketplace, Toronto Toronto, Canada October 21-22, 2013 AOT AZ Media Marketplace, New York New York, NY October 22-23,

4 INTRODUCTION In addition to trade and media activities and travel, staff operates the City of Chandler Local Bites; a unique list of restaurants that supports Chandler s one-of-a-kind dining experiences whether they are independently owned or extraordinarily unique in the market. Downtown: Economic Development Downtown Redevelopment staff continues to work with the merchants to collaborate in advertising and promoting business in Downtown Chandler. Staff coordinated efforts with the Downtown Chandler Community Partnership (DCCP), Arts Commission, Façade Grants, Site 8 Parking, Urban Gardening and various Special Events. Disclaimer: Content is intended to provide general information to the public and every effort has been taken to ensure that the information is accurate. Data is submitted subject to the possibility of errors, omissions and changes, but is obtained from sources and/or formulas deemed reliable. 4

5 ECONOMIC DEVELOPMENT OUTLOOK Locating and expanding quality industrial, commercial, retail, and small business opportunities throughout the City of Chandler and Downtown Chandler are of great importance to Chandler s future economic impact, and it is essential to the City of Chandler s estimated population of 242,684 citizens and approximated 97,179 housing units located in the City s borders as of December 1, Economic Development personnel continually update economic data, and demographic and development trends, to maintain current information to better assist clients with their search for potential development opportunities. The information also aids Economic Development staff in identifying areas of opportunity and specific gaps, in targeting retail markets and linkages to key census information, which assists in presenting available sites. 3,010 2,510 2,010 1,510 1, ,312 Jobs Created 145 2,962 Retail Jobs Industrial/Office Jobs 600,010 Square Footage 587, , , , ,903 83,000 Retail S.F. Industrial/Office S.F. 5

6 Economic Development Outlook The economic vitality of the City of Chandler relies on job growth and demographic factors. The influx of educated workers, sustainable increases in population, high education choices and a pro-business record, lay the groundwork for healthy job creation and employment opportunities during this quarter. Population Growth Source: City of Chandler Planning Division December 1, 2013 Population 242, , ,307 Jul. Aug Sep Population 242, , ,684 Oct Nov Dec Source: City of Chandler, Sales Tax & Licenses 6

7 ECONOMIC TRENDS According to the Arizona Department of Commerce, by the end of, the City of Chandler s average unemployment rate is 5.4% while the City of Phoenix has a 6.6% unemployment rate and the state of Arizona has a 7.5% unemployment rate. 1st & 2nd Quarter Unemployment Rate Arizona Phoenix Chandler July Aug Sep Oct Nov Dec Source: Arizona Department of Commerce Employment By Occupation Employment occupation data identifies and analyzes total employee counts per establishment within various industries. 7.8% 40.8% 27.6% 8.3 Farming, Forestry & Fishing Service & Occupation 15.8% 0.2% Managerial & Professional Service Source: Claritas Production, Transport, Material Moving Technical Sales & Administrative Support Construction, Extraction, Maintenance 7

8 ECONOMIC TRENDS During the sencond quarter, the number of employed citizens shows a slight increase for the City of Chandler and the state. According to the Arizona Department of Commerce since last quarter, the City of Chandler gained 917 jobs to its 126,059 total from the previous quarter; a 0.72% increase. Chandler's Employment Numbers Dec. 127,318 Oct. 126,299 Nov. 127,312 Source: Arizona Department of Commerce Employment Comparison: Chandler vs Arizona Dec 127,318 Nov Oct Sep Aug 127, , , ,684 Arizona Chandler Jul 125,825 5,000 50, ,000 5,000,000 8

9 INDUSTRIAL & OFFICE Economic Development Retail staff located four new companies that included three restaurants and one a new hotel to the City of Chandler. Retail Leads & Prospects Prospects Leads Q 1 Q 2 Specific Retail Activities: 1. Firehouse Subs Chris Sorensen and Robin Sorensen, the co-founders, grew up in a family of fire and police service. It seems they were destined to start Firehouse Subs. To-date, with more than 770 Firehouse Subs restaurants in 41 states and Puerto Rico, and 19 years of experience, they steam their meats and cheeses, releasing a rush of flavors. They then stuff a serving that is way over code on one of their toasted private recipe sub rolls to satisfy their customers. 2. Panera Bread The Panera Bread legacy began in 1981 as Louis Kane and Ron Shaich founded Au Bon Pain Co., Inc. The company prospered along the east coast of the United States and internationally throughout the 1980s and 1990s, to become the dominant operator within the bakery-cafe category. In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area. The company then managed a comprehensive re-staging of Saint Louis Bread Co. between 1993 and In May 1999, all of Au Bon Pain Co., Inc.'s business units were sold with the exception of Panera Bread. The company was renamed Panera Bread and since then, the company's stock has grown thirteen-fold and over $1 billion in shareholder value has been created. 9

10 INDUSTRIAL & OFFICE In 2007, Panera Bread purchased a majority stake in Paradise Bakery & Café, a Phoenix-based concept with over 70 locations in 10 states (predominantly in the west and southwest). The company purchased the balance of Paradise in June As of April 30, 2014, there are 1,800 bakery-cafes in 45 states and in Ontario, Canada operating under the Panera Bread, Saint Louis Bread Co. and Paradise Bakery & Café names, delivering fresh, authentic artisan bread served in a warm environment by engaging associates. 3. Staybridge Suites Staybridge Suites is an all-suite, residential-style brand of hotels within the InterContinental Hotels Group (IHG). The brand targets extended-stay and corporate travelers. There are almost 200 Staybridge Suites hotels open in the United States, Britain, Canada, Mexico, and Latin America. In its early days, the chain was branded as "Staybridge Suites by Holiday Inn." Staybridge Suites hotels feature residential-style surroundings and services, including their "Great Room" lobby. Hotels in the franchise feature all apartment-style suites with kitchens. Amenities offered by Staybridge Suites include complimentary hot breakfast daily, evening receptions midweek, fitness centers, and recreational activities. 4. Sonic For more than 50 years, SONIC Corp. has built a dominant position in the drive-in restaurant business by sticking to what made drive-ins so popular in the first place: made-to-order American classics, signature menu items, speedy service from friendly carhops, and heaping helpings of fun and personality. Today, Sonic is one of the largest chains of drive-in restaurants in America. Staff efforts in this quarter produced 145 new jobs and occupied 83,000 square feet of retail in the City of Chandler. By the end of the 2 nd quarter, staff combined efforts created 295 new jobs and occupied 156,645 square feet of retail space. Retail NAME LOCATION JOBS S.F. 1st Quarter Locates Cheddar s Loop 101 & Chandler Blvd. 50 6,600 Villari s Martial Arts Arizona Ave. & Warner Road 5 5,045 Conn s Loop 101 & Chandler Blvd ,000 Earnhardt Chandler Cadillac Gilbert Road & Loop ,000 10

11 INDUSTRIAL & OFFICE Retail NAME LOCATION JOBS S.F 2nd Quarter Locates Firehouse Subs Arizona & Ocotillo 20 1,800 Panera Bread Arizona & Ocotillo 40 4,200 Staybridge Suites McClintock & Chandler 60 75,000 Sonic Arizona & Germann 25 2,000 Sonic, Firehouse Subs and Panera Bread are all new locates south of Loop 202 Santan Freeway along Arizona Avenue. In this area, we have seen significant development in the past year. Panera Bread relocated inside the old Paradise Bakery at Alma School Road and Queen Creek Roads. Staybridge Hotel is the first new hotel in nearly five years in the area, and it will serve the area around Chandler Fashion Center and Stellar Airpark. Economic Development and job creation accompany one another and job creation offers ways to advance the economic security of the city s population. Retail Total Jobs Created Retail Total Square Feet 83,000 73,645 11

12 INDUSTRIAL & OFFICE Economic Development Industrial and Office staff efforts located five new companies to the City of Chandler with a wide range of office and industrial retention and expansion sites. Industrial & Office Leads & Prospects Prospects Leads Q 1 Q 2 Specific Industrial/Office Activities: 1. Virtual Scientific Virtual Scientific is a cytogenetics laboratory that services laboratories worldwide. They specialize in offering customized service packages to meet client s individual needs. They closely emulate the workflow process to ensure seamless transfers between labs. Their secure virtual environment allows the company to return tech only cases in as little as 24 hours. The American Society for Clinical Pathology (ASCP) certifies all Virtual Scientific technologists. The technologists all have an average of 18 years in the field. They are located in Colorado, Missouri, Utah, Virginia and this newest location in Chandler, AZ. 2. Arizona Nutritional Supplement Arizona Nutritional Supplements, Inc. engages in the contract manufacturing and packaging of nutritional and dietary supplements. The company offers a range of contract packaging services, including primary and secondary packaging, labeling, warehousing, and shipping to destinations. It provides nutritional and dietary supplements in tablets, capsules, and powder forms. 12

13 INDUSTRIAL & OFFICE 3. Alliance Bank Alliance Bank is a community bank that delivers a broad array of products. Their focus is relationship-based, personalized service, the latest in technology, and lending capabilities to meet the needs of virtually any Arizona business. Alliance Bank continues to expand its reach by skillfully addressing the specific needs of Arizona s businesses, real estate developers, professionals, and individuals seeking a personalized banking relationship. Local decision making and veteran banking leadership enable Alliance Bank to provide flexible and customized services tailored to meet the needs of their clients. 4. Black Diamond Advance Technology Black Diamond Advanced Technology, a Product Line of RMT Inc., designs, engineers, and manufactures fully rugged, customizable computers, including the Modular Tactical System. Made in the USA, the products are specifically designed to withstand the harshest elements and environments. Black Diamond s engineering team collectively possesses decades of experience in the aerospace, military, electronics, and defense industries, bringing a wealth of knowledge and expertise to each product developed. Black Diamond primarily serves specialized military operations, but its products and technology are also compatible for commercial markets, including biometrics, test and measurement, oil and gas exploration, deep sea exploration, and other rugged industries. 5. Wells Fargo Phase II Wells Fargo Phase II will double the size of its current location on the northwest corner of Price and Queen Creek Roads. The two four-story buildings will have office space, a meeting and event center, plus a café. Wells Fargo is one of the "Big Four banks" of the United States, along with JPMorgan Chase, Bank of America, and Citigroup. Wells Fargo in its present form is the result of a merger between San Francisco-based Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998, and the subsequent 2008 acquisition of Charlotte-based Wachovia. Following the mergers, the company transferred its headquarters to Wells Fargo's headquarters in San Francisco and merged its operating subsidiary with Wells Fargo's operating subsidiary in Sioux Falls. 13

14 INDUSTRIAL & OFFICE INDUSTRIAL/OFFICE NAME LOCATION JOBS S.F. 1st Quarter Locates CAPITAL INVESTMENT Roeshan Systems McClintock & Chandler Blvd 2 0 $0 General Motors Financial McClintock & 202 Santan Fwy. 1, ,903 $20,690,107 Garmin McClintock & Ray ,000 $7,600,000 Oragami Owl Chandler Blvd & 54th St ,000 $1,572,353 INDUSTRIAL/OFFICE NAME LOCATION JOBS S.F. 2nd Quarter Locates CAPITAL INVESTMENT Virtual Scientific Chandler Innovations 2 0 $0 Arizona Nutritional Supplements Kyrene & Pecos ,740 $8,600,000 Alliance Bank Ray & Price 40 27,017 $3,525,000 Black Diamond Advance Technology Germann & Cooper 70 24,196 $600,075 Wells Fargo Phase II Queen Creek & Price 2, ,000 $78,212,796 Job creation offers ways to advance the economic security of the city s population while capital investment is a major planning tool in which needed improvements to the City's facilities and infrastructure are identified. In this quarter, staff efforts produced 2,962 new jobs. 3,500 3,000 2,500 Industrial/Office Total Jobs Created 2,962 2,000 1,500 1, ,

15 INDUSTRIAL & OFFICE In, staff efforts occupied approximately 587,953 square feet of industrial and office space, in addition to a projected capital investment of $90.9 million. At the end of the second quarter, staff combined efforts created 4,274 new jobs, occupied approximately 847,856 square feet of industrial and office space, and secured $120.8 million in capital Investment. Industrial/Office Total Sqare Feet 700, , , , , , , , ,000 0 Capital Investment $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 $29,862,460 $90,937,871 15

16 TOURISM Chandler continued to see an occupancy decline as a direct result of the slowdown associated with the Intel expansion, which had driven occupancy during the same period last year. However, the community continued to experience positive growth with the Average Daily Rate (ADR). Staff was active in a number of events this quarter including the Arizona Showcase fashion show in Hermosillo, Sonora Mexico, which attracted more than 800 consumers and showcased Chandler Fashion Center as one of the feature Arizona shopping malls. One hotel partner, the Hampton Inn & Suites Phoenix, joined staff for the trade show. In addition, staff partnered with the Tempe Tourism Office to conduct various media appointments in an effort to generate editorial coverage during the fiscal year and to represent Chandler and Tempe on a mid-morning Telemax show. Several projects were outlined with several publications including a high fashion shoot to appear in the March 2013 issue of Fashionista. As a direct result of the October media appointments, a media FAM was held in November to expose editors and journalists to various story ideas for their respective publications. Smith Travel Research, Inc. (STR) has developed the specific Chandler and metro Phoenix hotel industry occupancy, average daily rate (ADR), and revenue per available room (RevPar) as a custom set for the Chandler market that is represented in the charts below: Chandler's Occupancy Rate 65.0% 64.2% 60.0% 55.0% 53.8% 50.0% 45.0% 16

17 TOURISM $95.76 $84.11 Chandler's Hotel RevPar $80.00 $60.00 $40.00 $20.00 $0.00 $45.06 $61.51 Metro Phoenix Comparison () Occupancy 53.8% 64.2% Occupancy 50.4% 58.1% Average Daily Rate $84.11 $95.76 Chandler Average Daily Rate $83.74 $ Metro Phoenix Revenue per available room $45.06 $61.51 Revenue per available room $42.25 $

18 TOURISM Tourism staff maintains the tourism website, that is featured in each advertisement, brochure and press release and utilized at trade shows. Staff works with the Chandler Local Bites website, which is a guide to unique and local Chandler eateries & drinks for residents looking for great places to eat or take visitors. Additional information can be obtained on the website, or at select locations, local restaurants, hotels, City facilities, and visitors bureaus. 18