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Home My WebLink AboutEconomic Development Strategic PlanJOHN KARRAS • JENNIFER TODD ECONOMIC DEVELOPMENT STRATEGIC PLAN 18 MONTH PROGRESS UPDATE CITY OF FORT WORTH AUGUST 13, 2019 AGENDA 1.How We Got Here 2.Data Update 3.Interview Feedback 4.Recommendations HOW WE GOT HERE 1 Who is TIP Strategies? Founded in 1995, we have over 24 years of experience in over 300 communities across 40 states, and 5 countries. Four principals with a total staff of 15. Committed to holistic thinking & sustainable development. Austin, Seattle, and Boston offices with global reach. HOW WE GOT HERE 2017 Completed Economic Development Strategic Plan. 2019 Review progress on Strategic Plan, including: •Interview City staff. •Update data and domestic benchmarks; discuss regional positioning. •Prepare and present findings to City Council. Strategic Plan Vision, Goals, & Outcomes Vision To compete successfully on the national and international stage for creative, high-growth businesses and the talented individuals who fuel them. Goals •Establish Fort Worth’s competitive edge •Become a hub for creative business •Ensure community vitality Outcomes •High-wage job growth •Developing a more sustainable tax base •Focus on high-growth businesses and the creative individuals who fuel them •Commitment to quality of place DATA UPDATE 2 Source: U.S. Census Bureau, Mid-year Population Estimates Program Progress on Metrics Establish Fort Worth’s Competitive Edge +25,288 +20,824 +19,552 +15,354 +13,151 +12,504 +12,153 +11,549 +11,053 +10,884 Phoenix San Antonio Fort Worth Seattle Charlotte Austin Jacksonville San Diego Denver Frisco TOP 10 US CITIES FOR NET POPULATION CHANGE, 2017-2018 Source: U.S. Census Bureau, Mid-year Population Estimates Program Progress on Metrics +19,552 +10,884 +9,888 +3,953 +3,947 +2,471 +2,459 +1,960 +1,408 +1,246 +1,102 +1,007 +509 +400 -1,420 Fort Worth Frisco McKinney Richardson Garland Allen Denton Dallas Irving Plano Carrollton Arlington Lewisville Grand Prairie Mesquite NET POPULATION CHANGE IN LARGE DFW CITIES, 2017-2018 Establish Fort Worth’s Competitive Edge Source: ESRI forecasts for 2019; City of Fort Worth. Progress on Metrics Establish Fort Worth’s Competitive Edge: Specific Growth Targets SPECIFIC TARGET STARTING POINT (2017) ANNUAL GROWTH TARGET(2018-2022)2018 FINISH LINE (2022)STATUS Fortune 1000HQs 2 (American Airlines & Pier 1 Imports) Add 1 Fortune 1000 HQ each year 2 (American Airlines, Range Resources Corp) 7 Fortune 1000 HQs No Change Inc. 5000 firms 11 Add 5 Inc. 5000 firms each year 10 36 Inc. 5000 firms Added 10 firmsResidential development in CBD: 1-mile radius 4,095 housing units Add 1,000 net new housing units per year 4,399 units (2019 estimate)9,095 housing units 304 unit increase Residential development in CBD: 2-mile radius 14,541 housing units Add 2,000 net new housing units per year 15,475 units (2019 estimate)24,541 housing units 934 unit increase Residential development in CBD: 4-mile radius 66,709 housing units Add 4,000 net new housing units per year 68,203 units (2019 estimate)82,709 housing units 1,494 unit increase Progress on Metrics Source: City of Fort Worth, TIP Strategies. Establish Fort Worth’s Competitive Edge: High-Wage Job Growth METRIC 2017 2018 ANNUAL GROWTH TARGET STATUS Number of jobs created/retained 1,029,600 1,068,300 Increase by 3% each year 3.6% increase Average wages of jobs created/retained $47,547 $48,643 Increase by 3% each year 2% increase Private non-farm employment 893,000 936,500 Increase by 3% each year 5% increase Fort Worth’s competitive advantage within the region cannot rest on manufacturing, retail, or service sector employment. •Balance HQ Recruitment with developing existing, local businesses. •Focus on target industries that align with Fort Worth’s assets. •Partner with major employers to pursue supply chain businesses; focus on out-of-market HQs of companies with a Fort Worth presence. Progress on Metrics Source: EMSI 2019.2 –QCEW Employees, Non-QCEW Employees, and Self-Employed Establish Fort Worth’s Competitive Edge: High-Wage Job Growth -2,000 0 2,000 4,000 6,000 8,000 ManufacturingAccommodation & food servicesAdministrative servicesTransportation & warehousingRetail tradeConstructionEducationProfessional servicesHealthcareWholesale tradePersonal & other servicesFinance & insuranceFederal government (civilian)Regional & corporate operationsArts, entertainment, & recreationUtilitiesFederal government (military)Property sales & leasingLocal governmentAgricultureState governmentOil, gas, & miningInformation & mediaUnclassified NET JOB GROWTH BY SECTOR & METRO DIVISION, 2017-2018 Fort Worth-Arlington-Grapevine MD Dallas-Plano-Irving MD Source: City of Fort Worth; Texas Comptroller of Public Accounts. Progress on Metrics Establish Fort Worth’s Competitive Edge: Sustainable Tax Base METRIC 2017 2018 ANNUAL GROWTH TARGET STATUS Retail sale growth $140,680,044 $154,573,000 Increase by 5% each year 9% increase Growth of commercial tax base $20,353,254,646 $22,439,551,673 Increase by 9% each year 9% increase Hotel occupancy 64.8%Data not yet available for 2018 Maintain above 65% Amount of new office space (SQ/FT) added to regional market 42,291,630 42,531,437 Increase by 1% each year 1% increase Amount of new industrial space (SQ/FT) added to regional market 118,997,510 123,852,804 Increase by 2% each year 4% increase Taxable Sales: City of Fort Worth as a Percent of Metropolitan Division Source: U.S. Census Bureau, Building Permits Survey. Permitting data represents the calendar year as shown; 2018 dates are preliminary. Progress on Metrics Number of single-family permits issued Average value of single-family permit CITY 2017 2018 CITY 2018 Fort Worth 5,042 5,477 Richardson $433,951 McKinney 2,526 2,280 Irving $404,342 Frisco 1,935 2,195 Plano $394,784 Dallas 2,100 2,009 Carrollton $392,050 Denton 871 1,005 Lewisville $310,447 Arlington 475 619 Garland $289,512 Carrollton 301 571 Allen $284,416 Irving 648 517 Denton $265,436 Allen 435 457 McKinney $263,070 Grand Prairie 257 394 Frisco $253,190 Lewisville 242 352 Mesquite $238,306 Plano 315 244 Grand Prairie $235,490 Garland 171 92 Dallas $235,164 Richardson 134 85 Arlington $216,011 Mesquite 67 70 Fort Worth $173,467 Establish Fort Worth’s Competitive Edge: Sustainable Tax Base Source: U.S. Census Bureau, Building Permits Survey. Permitting data represents the calendar year as shown; 2018 dates are preliminary. Progress on Metrics Establish Fort Worth’s Competitive Edge: Sustainable Tax Base Number of multi-family permits issued Average value of a multi-family unitCity20172018City2018 Dallas 5,151 6,038 Frisco $164,338Fort Worth 3,814 3,833 Irving $136,030Frisco2,342 2,613 Fort Worth $126,838 Grand Prairi 426 1,244 Plano $118,807McKinney1,475 1,223 McKinney $113,969Richardson1,946 1,102 Garland $113,187Arlington495947Lewisville$112,209Lewisville272688Denton$107,148Carrollton588638Richardson$104,772Allen599597Dallas$102,994Denton569547Arlington$97,812Plano859468Grand Prairi $86,871Garland2,181 364 Carrollton $66,323Irving1,024 33 Allen $55,235Mesquite00Mesquiten/a Source: City of Fort Worth. Progress on Metrics Become a Hub for Creative Business METRIC 2017 2018 ANNUAL GROWTH TARGET STATUSPrivate sector business creation (Tarrant County)42,763 43,447 (second quarter)Increase by 3% each year 1.6% increase Number of new businesses formed 5,581 5,823 Increase by 5% each year 4% increase Number and dollar value of venture capital and angel investment deals 15 companies$1,605,160 11 companies$2,249,000 Increase each year 29% increase SBIR/awards 1 1 Increase by 1 per year No change Utility patent grants 468 407 Increase by 1% each year 7% decrease Population age 25+ with a bachelor’s degree 28.3%ACS 2018 1-year estimates not yet available Increase by 2% each year Percent of the population age 20-34 23.8%ACS 2018 1-year estimates not yet available Increase by 1% each year Number of enrolled college and university students 134,374 135,735 Increase by 3% each year 1% increase Annual unemployment rate 3.9%3.3%Decrease each year .6% decrease Graduation rates of area high schools 93.96%93.98%Maintain above 93%.99% increase Progress on Metrics Ensure Community Vitality METRIC 2017 2018 ANNUAL GROWTH TARGET STATUSShare of workers working from home 3.6%ACS 2018 1-year estimates not yet available Increase by .5% each year Median home sales prices $235,068 $249,166 None 6% increase Median monthly rental rates of apartments $940: 1BR$1,140: 2 BR $920: 1BR#1,150: 2BR None 2% decrease: 1BR.9% increase: 2BR Additional Quality of Place Accomplishments •Neighborhood-focused initiatives: Evans and Rosedale, Race Street. •New co-working spaces. •Incentives to provide more residential options downtown. •E. 3rd St. pedestrian connection under the railroad to Hillside. •S. Main Street underpass bike lanes. •W. 7 th street redesign. Source: City of Fort Worth, Interviews. INTERVIEW FEEDBACK 3 Interview Feedback Interview Respondents: Progress on the Strategic Plan •Enthusiasm for the plan and goals, some initial signs of progress. •No major changes in Fort Worth’s position within or outside the Metroplex. •One year may not be enough time to judge progress. •Fort Worth has a strong employment base, downtown, and surrounding neighborhoods, but is often overlooked by site selectors. Interview Respondents: Recommendations •Continue to increase strategic and organizational alignment. •Prioritize target industries, not just Fortune 500 or 1,000 companies. •Continue to ensure community vitality by promoting downtown and surrounding urban districts. Source: Interviews. STRATEGIC AND ORGANIZATIONAL ALIGNMENT Continue to build strategic and organizational alignment with a one-year work plan. “People are beginning to recognize our challenges and are ready to get to work.” -Interview respondent “The biggest struggle is organizing roles and getting focused on targets and marketing.” -Interview respondent Strategic and Organizational Alignment Achievements •MOU between City of Fort Worth Economic Development Department and Chamber. •Monthly meetings with City, Visit Fort Worth, Black and Hispanic Chambers. •Use of salesforce to enhance BRE. •Tracking inter-organizational metrics. Next Steps •Continue to support additional coordination between the City’s Economic Development Department, Chambers, Sundance Square, Alliance, and others. •Begin 2019 Industry Task Force: Chamber, City, area businesses. •Establish stronger links between Fort Worth’s tourism events and business recruitment. Ex: Main Street Arts Fest, Fortress Festival. •Increased funding and recruitment support for the Medical Innovation District. Source: Interviews. PRIORITIZING TARGET INDUSTRIES Balance Corporate HQ recruitment with regional opportunities aligned with target industries. “Prioritization of corporate HQ is still the highest priority.” -Interview respondent “Do not chase Fortune 500 and regional wins…We need a more targeted strategy that is industry-focused.” -Interview respondent Prioritizing Target Industries Achievements •Corporate expansions: Amazon Air Freight Hub, Facebook data center, American Airlines Corporate HQ expansion. •New incentive programs and City/Chamber BRE Program. •Targeted digital marketing campaign. •Medical Innovation District Strategic Development Plan underway. Next Steps •Renovate and expand the convention center. •Continue focus on eight target industries identified in the Strategic Plan. •Ensure site readiness is aligned with target industries. •Cultivate local talent. •Targeted recruitment at the Medical Innovation District. Source: Interviews. ENSURE COMMUNITY VITALITY Promote investments in downtown and the surrounding urban districts. “There is a stiff war for talent; increasingly, people are choosing to live closer to work…” -Interview respondent “When funky neighborhoods win, the whole city and downtown win.” -Interview respondent Ensure Community Vitality Achievements •1,000 housing units under construction in the urban core. •Downtown housing study underway. •Near Southside development, including the Medical Innovation District. •Evans and Rosedale development, XTO redevelopment. Next Steps •Encourage high-density residential development downtown; respond to housing study findings. •Balance downtown development with focus on cultivating surrounding urban districts. •Utilize City’s internal due diligence process to address community concerns about development. Source: Interviews. RECOMMENDATIONS 4 1.Coordinate target industry and corporate HQ recruitment by continuing to align programs, financial resources, and staff. 2.Promote the successes and story of Fort Worth through a more aggressive media strategy. 3.Blend old and new Fort Worth in business recruitment and expansion as well as neighborhood development. Source: Data analysis, interviews. TIP Strategies. Recommendations THANK YOU 2905 San Gabriel StreetSuite 205Austin, TX 78705 512.343.9113 www.tipstrategies.com Image Credit :Austin_Texas by Ed Schipul via Flickr (CC BY-SA 20)