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HomeMy WebLinkAbout10242011 City Council Laydowns fc /,, yu-71 ewa s Ca.5 Srarr.s ewe. Chamber of Commerce — Report to Council October 24, 2011 Cindy Clock, ED Good Evening Mayor and Council Members, I am excited to bring you the news tonight that as the new Executive Director of the Chamber, now complete with a full staff supporting me, we are motivated and ready to continue our leadership role in the economic development of Seward by following through with the recommendations of the 2010 assessment created by TIP strategies and Christi Bell, University of Alaska Center for Economic Development. We are now in the process of re-engaging Christi Bell to assist us in the implementation phase to reverse the trends of decline (outlined in the assessment) that we've seen in the past 10 years. The graphs on page 4, 5 & 6 clearly demonstrate these trends. I actually am appreciative of this entire report — it's easy to read and readily understandable. Issues identified include: * Population decline *Fewer retail businesses *Lack of long term business retention *Decline in sales tax revenues *Low property tax base. One of the first recommendations is so basic, that maybe we've overlooked it: Focus on Business Retention & Expansion. Existing businesses should always be our first priority. When it comes to attracting new growth, they are in the position to make the strongest case for investing in Seward. What would you be more persuaded by if you were looking to invest in Seward? 1) Hearing from public officials why Seward is the place to be, or 2) Hearing from successful business leaders? I think we ought to have a Business Advisor link on seward.com as well as the extremely popular Trip Advisor! I am looking forward to working with you to achieve the goal of increasing private sector presence in our town thereby removing us from the unsustainable position in which we currently find ourselves. With a clearly articulated vision for the community along with the defined mission of the City Council to: `Represent the best interests of the community' we'll find that our efforts get us to that goal. Begin with the end in mind Stephen Covey W4/, Seward com M-E.. 1(astta 52-arils titer. 104.41014) sir Seward Chamber of Commerce Conference and Visitors Bureau Community Awards Nomination Form Submit both sides of completed form to the Seward Chamber, CVB at the address below or fax to 907-224-5353 on or before December 16th. Use a separate form for each nomination. Attach additional sheets as needed. Individual letters of support will also be accepted. Awards will be presented at the annual State of the Chamber General Membership Meeting in January. Award Category (Check One) Evaluation Criteria ❑ Person of the Year Resident of Alaska for at least 10 years. Active in community or civic affairs. ❑ Business Person of the Year A Seward Chamber,CVB member who has stimulated economic development in Seward through business activity and exemplifies professional excellence in business and/or their profession. ❑ Business Site Improvement A Seward Chamber,CVB member who has enhanced or remodeled their place of business. NOMINEE'S NAME: COMPANY NAME: TITLE: BUSINESS ADDRESS: PHONE: CITY: STATE: ZIP: SUBMITTED BY: PHONE: Describe the nominee and why you have nominated them on the reverse side. Seward Chamber of Commerce PO Box 749 Seward, Alaska 99664 16/4?:„.1/1 f • 1 a " .t> may$a >,a Asa !!'t_.. _ '. •••• "�sn..-a _:.. Gr.t �,,���y �x[c�:"' °1'.,T� i •.y `. e, ,, r'". t �- -, • SEWARD ECONOMIC DEVELOPMENT ASSESSMENT Prepared for the City of Seward May 2010 TIP Strategies,Inc. 106 East 6i^Street Suite 550 Austin,Texas 78701 512.343.9113(voice) 512.343.9190(fax) wwwtipstrateg ies.corn Seward Economic Development Assessment Report Executive Summary To fulfill its contract with the City of Seward, the Seward Chamber of Commerce engaged the TIP Strategies, Inc. (TIP) and the University of Alaska Center for Economic Development (UACED) to perform an assessment of Seward's economic development capabilities. The assessment was accomplished through (1) an analysis of economic and demographic data, (2) an online survey of Seward residents and business owners/managers, and (3) a site visit and interviews with various representatives from the Chamber, the City, and the local business community. The purpose of the assessment is to evaluate Seward's current economic development assets, processes, coordination, and expertise. Key Assessment Findings The data analysis reveals some trends in relation to population, business formation, and employment that should be of concern to the community. Population growth and new business formation in Seward has been flat in recent years. The number of retail establishments has even declined over the past 10 years. In addition, some of the jobs in Seward with the oldest worker profiles are in key professions such as registered nurses, teachers, and general managers. Twenty percent of the 58 business owners responding to the online survey indicate they plan to move or discontinue their business in 1-2 years. A high frequency of business respondents noted difficulty dealing with the City, unfriendly business climate, and difficulty dealing with the Harbor as reasons they planned to move or close their operations. Forty-two percent of businesses would not choose to start their business in Seward today. -- Resident respondents were most likely to favor economic development policies and strategies that enhance the quality of life and provide better job opportunities. Business respondents were more likely to favor economic development policies and strategies that reduce regulation, increase the amount of land available, and increase support of local businesses. It is the view of the consulting team that the Seward Chamber of Commerce is an effective economic development organization given its staffing levels and resources. This view was generally supported by business representatives interviewed as part of the assessment. The team encountered no major impediments presented by City departments or staff to opening or operating a business in Seward. Suggestions for improving the responsiveness and customer friendliness to businesses included more consistent code enforcement across departments; better IT systems integration across departments; the creation of a simple guide for leasing City property; and the development of a single flow chart illustrating the permitting, licensing, and development process for City staff and businesses. Business representatives interviewed reported new City leadership and staff in recent years has resulted in improved customer friendliness. Still, business owners expressed considerable frustration that City leadership does not "hear" the concerns of the business community. There is also a perception among businesses that City leadership lacks a private sector mentality. Many business representatives questioned the commitment of City government to expanding private sector investment in Seward and diversifying the tax base. Many fear the prevalence of public sector investments in the City is shrinking the private sector tax base, which results in higher taxes and fees on existing businesses and their customers. TIP Strategies, Inc. &UACED 1 Seward Economic Development Assessment Report Business representatives advocated for an ongoing forum between City leaders and the business community held outside of the City offices to discuss theses concerns. It is not clear from either the City or Chamber websites the appropriate process for new investment prospects to initiate a business location inquiry. The City and Chamber should establish a formal protocol for prospect assistance, which is then clearly described online and in printed literature. Recommendations The most important contributing factor to a successful economic development program is the involvement and support of the existing business community. As a consequence, the City and Chamber should involve the business community the community's economic development activities, including business retention, expansion, and recruitment. The City and Chamber must jointly commit to more aggressively retaining, expanding, and attracting private investment. This likely will involve greater resources dedicated to economic development. It is the view of the consulting team that the Chamber is the proper organization to lead Seward's economic development efforts. However, before any resources are spent, a community-wide economic development strategic plan should be developed and put in place to guide resource allocation. The community should organize economic development teams consisting of public officials, City and Chamber staff, and business representatives. These teams would be assembled for hosting new investment prospects and calling on outside companies. The City should explore ways for offering an expedited permitting process for qualified new, expanding, or relocating businesses. Such a process would commit the City to streamlining and simplifying governmental permitting processes where possible. The City of Seward and the Seward Chamber of Commerce should collaborate to expand the community's business retention and expansion program. TIP Strategies, Inc.&UACED 2 0 Seward Economic Development Assessment Report About the Consulting Team About the Economic TIP Strategies, Inc. (TIP) is a privately held Austin- Development based business and economic development consulting Assessment firm committed to providing quality solutions for both public and private-sector clients. To fulfill its contract to the City of Seward, the Seward Chamber of Commerce engaged the TIP Established in 1995, the firm's areas of practice include Strategies, Inc. (TIP) and the University of Alaska economic development consulting, strategic planning, Center for Economic Development (UACED) to site selection, economic impact analysis, regional perform an assessment of Seward's economic economic development, target industry analysis, cluster development capabilities. As part of the analysis, technology audit, transit-oriented development, workforce analysis, feasibility studies, market analysis, assessment, the consulting team evaluated and redevelopment analysis and planning. Seward's current economic development,assets, processes, coordination, and expertise. In addition, 106 E. 6th Street, Suite 550 the team conducted a general assessment of the Austin,Texas, 78701 commitment to economic development among the 512.343.9113 (voice) local partners, including the Chamber, the City of 512.343.9190 (fax) Seward, local businesses, and other community contact©tipstrategies.com organizations. The Chamber and the City will use the assessment as a basis for approaching how the community of Seward can better accomplish its The University of Alaska Center for Economic economic development goals. Development (UACED) is one of 52 University Centers designated by the U.S. Department of Commerce, Economic Development Administration. In this role, Approach UACED leverages the resources of the university system The assessment utilizes three approaches to to support economic development in Alaska, providing gathering input and analysis. First, an analysis of technical assistance in the form of information, data, and various economic and demographic indicators know-how in evaluating, shaping, and implementing provides a brief snapshot of Seward's economic specific projects and programs that promote economic strengths and weaknesses, revealing recent trends development across the state. for indicators such as population, employment, and UA Center for Economic Development business creation. Second, the team administered University of Alaska Anchorage an online survey of Seward residents and business 3211 Providence Drive owners/managers. The survey gauged perceptions Anchorage Alaska 99508 regarding challenges and opportunities for living, Phone: (907) 786-5444 working, and operating a business in Seward. Four Fax: (907)786-5446 groups were targeted and contrasted: 1) business http://ced.uaa.alaska.edu/ owners, 2) general Seward residents, 3) senior citizens, and 4) high school seniors. Third, team Project Team members conducted a site visit and met with Tom Stellman,TIP Strategies various representatives from the Chamber, the City, Alex Cooke,TIP Strategies and the local business community to assess local Christi Bell, UACED economic development priorities, responsiveness, opportunities, challenges, and capabilities. TIP Strategies, Inc.&UACED 3 Seward Economic Development Assessment Report What We Learned TIP Strategies and UACED performed both quantitative and qualitative analyses as part of the economic development assessment. First, the team conducted an analysis of economic indicators for Seward. In addition, UACED carried out an online survey targeting Seward business owners, general residents, senior citizens, and high school seniors. The survey was designed to assess perceptions regarding challenges and opportunities for living, working, and operating a business in Seward. Finally, team members from TIP and UACED travelled to Seward to interview public officials and local business owners regarding economic development issues and opportunities. The section below summarizes key findings from each analytical component. Economic Trends TIP analyzed various economic and demographic indicators for Seward to form a brief snapshot of the community's economic strengths and weaknesses. While not comprehensive, the analysis does shed some light on recent trends for indicators such as population, employment, and business creation. Population Figure 1 below illustrates Seward's population growth between 1990 and 2008. It includes official U.S. Census Bureau counts (brown bars), intercensal estimates (blue bars), and Alaska Department of Labor and Workforce estimates (brown line). The graph shows the Census Bureau significantly overestimated Seward's population growth in the 199Os. By 1999, the Census Bureau estimated Seward had 3,315 residents. However, the actual Census count in 2000 revealed only 2,813 residents. Consequently, Census Bureau estimates since 2000 have been less aggressive. The latest population estimate for mid-year 2008 is just over 3,100, giving Seward an overall population increase of about 10 percent since 2000. While the U.S. Census Bureau Figure 1:Seward Population, 1990-2008 has tempered its post-2000 population growth estimates 3,500 - .atea c 3500 ssus for Seward, the Alaska 4 Official st m,t Department of Labor and 3,000 otrciar - ' r 3000 Workforce Development 2 • rx , (ADLWD) has been even less 2,500 �- 2500 x Latest 2 619 optimistic. ADLWD estimates �d 'te .4DLWD �" X Estimate I show Seward's population 2,000 �, z s � ; 2000 declining from 2,830 in -01 .� � 2000 to 2,619 in 2008. If 1,500 `� 4: - � - g - t*rg Of: 1500 1 '� z correct, these estimates mean Seward's current 1,000 1000 population is about the same or less than it was at 500 500 the time of the 1990 Census, nearly 20 years a 0 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 ago. SOURCE U S Bureau of the Census:Alaska Department of Labor and Workforce Development TIP Strategies, Inc. &UACED 4 Seward Economic Development Assessment Report also accurate indicators of Figure 2:Students and Teachers Counted in 99664,1990.2006 i overall population trends. - - loo Total t Total number of Data collected by the US number of teachers primary& . 90 Department of Education's seconschooldary (line) statistical unit counting all (cowdmnnst '-,° U.S. schoolteachers and students by Zip code indicate an enrollment pattern consistent with ADLWD `� g population estimates. I t ) g' 40 According to Figure 2, �> 30 between 1995 and 2000 the ; number of primary and a z0 secondary school students in , - - Q - ,.o the 99664 Zip code peaks and 1--- - -- 1 `t-- -LH. 0 then begins leveling off. From 19901991199219931994199519951997199819992005200120322053200420552056 2001 to 2006, the number of SOURCE U.S Department ofEducation,National Center for Educational Statistics Data represent total counts within 99664 ZIP Code students steadily declines. In ty. , ,,.��. ,,,d,., . o , x , ._._..:___,,J fact, Seward's student population fell from a high of 896 in 1995 to a 17-year low of 649 in 2006. Reflecting the overall decline in student enrollment, the number of local teachers also remained flat or declined since 1996. Economy As shown in Figure 3, between 1998 and 2007 net business formation in Seward remained relatively flat. During this period, the private-sector economy within Zip code 99664 added just nine new business establishments. However, ri Figure 3:Private-Sector Economy*within 99664,1998.2007 1 private sector employment - - - 1,300 Number gained almost 200 new jobs. ) Number of private of sector - 1,200 covered g This means the average establish- ments sta bllsh- - jobs mems (,;^e, number of workers employed t (columns) m,.,, "--'^» ' fr 1,100 at Seward businesses r" - 1,000 900 increased over the period. In 1998, local businesses 800 employed I an v average of 6.1 workers. By 2007, this figure bOO had risen to 6.8 workers. 500 1 r_ 1 400 In addition, the total private- -- 300 sector payroll (unadjusted for ,, 200le i inflation) nearly doubled from 100 $27.2 million in 1998 to $50.6 - - — —.. _ ;; million in 2007. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 i I SOURCE:U.S.Census Bureau,Zip Code Business Patterns Based on covered employment,which typically excludes government workers and the self-employed. TIP Strategies, Inc. &UACED 5 Seward Economic Development Assessment Report number of private sector Figure 4:Private-Sector Business Establishments within 99664,1998-2007 establishments in zip code Number 45 99664 by industry sector of private establish-or 4sect0 Accommodation & food - / `` —Accommodation&food menu by moo^ ` services services is the largest category • industryyJ3 sector 35 --Transportation& of business establishments in ''''' warehousing .p_ Seward. As of 2007, 40 30 —Retail trade'''''''''--- businesses operating in this 25 Personal&other services sector had a 99664 address. 20 Health care&social A decade ago, retail 15 `•,,.., -- assistance* establishments rivaled i -Construction 10 motels, restaurants, and —Professional services bars for the most i 5 important sector of the Manufacturing local economy, but over 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 the past 10 years, the g SOURCE:U S.Census Bureau,Zip Code Business Patterns 'Includes medical practitioner offices number of retail outlets has declined from 32 to 21. Retail trade now ranks third in the number of local establishments behind transportation &warehousing. The number of transportation &warehousing businesses spiked between 2003 and 2005, but fell sharply in 2006 and 2007. The sectors registering establishment growth in the last two years of available data include healthcare, personal services, and professional services. Figure 5 illustrates the relatively small size of most businesses in Seward. Two of every three businesses (68 percent) have fewer than five employees. Just 6 percent of the business establishments employ 20 or more workers. Figure 5:Size of Business Establishments within 99664,2007 E 20-49 50-99 100+ 3% 2% 1% 1 Size category Number of businesses 0-4 employees 127 10-19 5-9 30 I 10% 10-19 18 20-49 5 50-99 4 100+ 2 5-9 All establishments 186 16% 0-4 employees 68% 9 1 ^n 4`•• I I SOURCE:US Bureau of the Census,Zip Code Business Patterns 2007(latest available) TIP Strategies, Inc.&UACED 6 Seward Economic Development Assessment Report The composition of the local workforce by age is also an important economic development consideration. If workers in key occupations are older, will there be enough new workers to replace them? Do the jobs currently filled by younger workers offer the potential for further professional and technical development? Figure 6 indicates some of the jobs in Seward with the oldest worker profiles are in key professions such as registered nurses, teachers, and general managers. More than two-thirds of Seward's workers in these three occupations are over the age of 45. For managers, this age profile is intuitive since this is an occupation that a worker advances into over time. The age profile for teachers and registered nurses, however, should include a higher percentage of younger workers. Having such a large percentage of teachers and nurses over the age of 45 represents a red flag for potential future labor shortages in key occupations. Figure 6: Occupational Composition*of Seward's Workforce by Age 1 Occupations _ - Number Age Breakout: Under 45(%) 45 or older(%) Janitors&Cleaners 11 1111111111111.111111111111111111111111111111111111 18 82 ► Teachers&Instructors,All Other 25 NIIIIIIIIIIIIIII 20 80 ✓ Registered Nurses 17 111111111011111111111111111111111111.111111 29 71 ► Managers,All Other 10 IIMM=11111111111111111111111111111111111111 30 70 ► General&Operations Managers _ 16 11111111111111111111111=111111111111111111 31 69 Retail Salespersons 24 1111•1111.111111111111111111111111111111. 38 63 Healthcare Support Workers,All Other 13 1111111111111111111111111=11111110101111 38 62 f Correctional Officers&Jailers 50 111111111•1111111111111.11111 40 60o Customer Service Representatives 14 1111111111=111111111011111111111111111111111 43 57 1 Bookkeeping,Accounting,&Auditing Clerks 25 IIIIIIIIIIIIIIIMIIIIIIIIINIIIII 44 56 Teacher Assistants - 11 1111111111111111111111111111111111111 45 55 Office&Administrative Support Workers 24 IIIIIMMIIIIIIIM1111111111•111 46 54 I Office Clerks,General 17 IIIMIIMEMINIMMIIIIIIIIM 47 53 Personal&Home Care Aides 10 50 50 Meat,Poultry,&Fish Cutters&Trimmers 12 50 50 Executive Secretaries&Admin Assts 17 11111111111111111111101111111111.1111111111153 47 Hotel, Motel,&Resort Desk Clerks 18 56 44 Captains, Mates,&Pilots of Water Vessels 25 NNINIINIIIIINIINMINIIIII 56 44 t Maintenance&Repair Workers,General 10 11111111111111MINIIIIIIIIIMIIII 60 40 i Electricians 10 11111111111.1MIMIIINIM111111 60 40 i Bartenders 13 1111111111111111111111111111111111111111111111111 62 38 1 Laborers&Freight,Stock,&Material Movers 21 IIIINNIIIIIIIIIIIIIIIIININII 62 38 Cashiers 43 INNIIIIMMI1111111111111111111111111 63 37 I Food Preparation Workers 19 11111111111111111111111111111111111111111111111111111 68 32 Waiters&Waitresses 29 111111111111111111111111111111111111.111111111111111111 72 28 Sailors&Marine Oilers 22 73 27 o Cooks,Restaurant 17 76 24 Dishwashers 10 a 80 20 Maids&Housekeeping Cleaners 11 ININIIIIIIIMINIMMIIIIIIII 82 18 Construction Laborers 14 INII 86 14 SOURCE:Alaska Department of Labor and Workforce Development 'includes the 30 occupations in Seward that employ at least 10 workers TIP Strategies. Inc. &UACED 7 Seward Economic Development Assessment Report Survey Results UACED administered an online survey of Seward residents and business owners/managers through Zoomerang between February 20 and March 28, 2010. The survey was intended to assess perceptions regarding challenges and opportunities for living, working, and operating a business in Seward. The survey targeted and contrasted the following four groups: 1) business owners, 2) general Seward residents, 3) senior citizens, and 4) high school seniors. Questions were designed to gauge business owners' perceptions on issues of workforce, land and property, services provided to businesses, and operating a business in Seward. Questions also were designed for residents to access purchasing habits, identify potential businesses opportunities, and gather perceptions of Seward's strengths and limitations. The Seward Chamber of Commerce communicated the opportunity to participate in the survey through multiple ads in the Seward City News, announcements at Chamber meetings, through the weekly Chamber newsletter, and direct communication with the high school and senior center. Of the 110 surveys completed, input was received from the following: business owners (58), residents (19), senior citizens (12), and 2010 high school seniors (21). Business Survey Summary Key findings of the business owners/managers survey are highlighted below: Most respondents are small businesses with three or fewer employees. About one-third have lived in Seward 25 years or more. Almost 50 percent of respondents have been in business 7-24 years; 21 percent have been in business 25 years or more years. Businesses responding represent a minimum of 295 jobs in Seward. About one-third of businesses expect revenue to decrease this year; 41 percent expect it to stay the same; and 25 percent expect revenue to increase. Business respondents indicate that regulatory practices, economic issues, and lack of a well- If you are planning to move or close your business, trained labor force have a negative effect on which of the following influenced your decision? businesses in Seward. One-fifth plan to move Please check all that apply: or discontinue their business in 1-2 years; half Insufficient customer base 2 of these noted difficulty obtaining permits to Competition from other businesses 2 operate or expand. A high frequency of Inability to find employees with technical or work 1 respondents noted difficulty dealing with the skills to meet your business needs City, unfriendly business climate, and difficulty Inability to find sufficient space to expand 1 dealing with the Harbor as reasons they Difficulty in obtaining permits to operate or 5 ; planned to move or close their operations (see expand your business box). Retiring 0 Other 5 When asked about hiring issues, 46 percent of respondents expressed difficulty finding skilled employees. Twenty-nine percent reported difficulty hiring laborers, managers, and part-time employees, respectively. Thirty-eight percent of the businesses hire employees 18 years or younger. TIP Strategies, Inc.&UACED 8 Seward Economic Development Assessment Report About two-thirds of respondents indicated lack of satisfaction with the City Council (elected); 66 percent reported a lack of satisfaction with the City of Seward (Administration). Approximately three-quarters of business respondents were satisfied or very satisfied with the Seward Chamber and 70 percent were satisfied with the Alaska Vocational Technical Center(AVTEC). Respondents were asked to rate Seward as a place to do business. Over 50 percent rated Seward weak or somewhat weak in the following areas: access to affordable financing, affordable utilities, affordable housing, simplified permitting and local regulations, active downtown core and land use planning. Business respondents indicated that quality of life (e.g., cleanliness, safety, and recreational opportunities) has positive effects on Seward as a place to do business. Over 50 percent rated Seward's quality of life as somewhat strong or very strong. Business respondents suggested increased collaboration with other businesses for marketing Seward as a tourist destination, making a case for state support, and encouraging development of a downtown core. Increasing awareness of resources available to local businesses and better responsiveness to Seward business concerns by City staff and the Council were the most important items for improving Seward as a place to do business. • Forty-two percent of businesses would not choose to start their business in Seward today. • The top sources of information used by businesses include the Seward City News, the Seward Chamber of Commerce website, and the City of Seward website. Resident Survey Summary Key findings of the survey of Seward residents are highlighted below. Differences between general resident, senior citizens, and high school seniors are noted where applicable. The majority of resident respondents have lived in Seward more than four years. Almost a quarter of both general residents and senior citizens have lived in Seward 25 or more years. Fifty-seven percent of high school seniors have lived in Seward more than 15 years. Survey respondents indicated the following were the most important items in defining the character of Seward: locally owned businesses, outdoor recreational opportunities, and community events. • All residents make the majority of their purchases outside of Seward. Products most frequently purchased outside of Seward by senior citizens include clothing, home furnishings, and appliances. High school seniors are most likely to purchase clothing, electronics and computers outside of Seward. General residents are more likely to purchase electronics, computers, home furnishings, and appliances. Non-high school respondents reported purchasing most groceries outside of Seward. Survey respondents purchase a majority of fishing supplies, auto parts and services, and hardware and lumber locally. Respondents also patronize local restaurants. • When asked what most influenced respondents' purchases made outside of Seward, product pricing was the reason given by all. Availability and selection were the second most influential reason given. All resident respondents rated Seward as a place to raise children as "very good," a place to retire as "good", a place to work as"good"and safety of residents as"very good." TIP Strategies, Inc.&UACED 9 Seward Economic Development Assessment Report Respondents were asked to rate their level of agreement with statements describing Seward as "strongly agree," "agree," "neutral," "disagree," or "strongly disagree." All residents agree that Seward is a clean city, has good air and water quality, and has accessible health care. All respondents"strongly agree"that Seward has a sense of community. None of those responding agree that living is Seward is affordable. All respondents use the Seward City News as their major source for community issues, services, and programs. Economic Development Implications from Surveys Respondents perceive significant barriers to economic development in Seward: regulations, permitting, and a lack of focus and support for economic development by government. Residents perceive governmental attitudes and lack of coordinated economic development activities as further barriers to economic development. Resident respondents were most likely to favor economic development policies and strategies that enhance the quality of life and provide better job opportunities. Business respondents were more likely to favor economic development policies and strategies that reduce regulation, increase the amount of land available, and increase support of local businesses. An important— but often overlooked —and effective aspect of economic development is assisting existing small businesses to succeed and making the business climate friendly to expansion. Site Visits and Interviews Representatives from TIP and UACED traveled to Seward on February 17-18, 2010, to conduct a site visit and meet with various representatives from the Chamber, the City, and the local business community. The consulting team toured the community and visited each of Seward's primary economic development sites and assets. In addition, the team met individually with Chamber staff as well as various City leaders and departments to assess local economic development priorities, responsiveness, and capabilities. Finally, the team spoke with representatives of the local business community individually and in a focus group format to discuss the primary challenges and strengths to doing business in Seward. A summary of the team's key findings is presented below. Chamber of Commerce It is the view of the consulting team that the Seward Chamber of Commerce is an effective economic development organization given its staffing levels and resources. The Chamber is led and staffed by an experienced and capable team. The three main areas of focus for the Chamber include membership services and development; visitor and tourism promotion; and business retention, expansion, and attraction activities. The executive director is knowledgeable about the issues affecting Seward's business community as well as the practice of economic development. Nearly every business representative expressed the view that the Chamber is a strong advocate for local business issues and effectively markets Seward to visitors and businesses with the resources at its disposal. City of Seward In order to assess the economic development views, capabilities, and responsiveness of the City of Seward the consulting team interviewed the mayor, city manager, and several department managers and staff, including the electric utility, city clerk's office, fire chief, building and engineering, harbor master, and community development department. A summary of the key findings is presented below. Overall, the consulting team encountered no major impediments presented by City departments or staff to opening or operating a business in Seward. Each person interviewed seemed professional and open to helping businesses succeed in Seward. TIP Strategies, Inc. &UACED 10 Seward Economic Development Assessment Report • Some managers reported a lack of consistent enforcement of codes and regulations across departments. This has been attributed to departments being located in different facilities and some codes not being aligned. One suggestion is for the City to develop a single flow chart illustrating the permitting, licensing, and development process for City staff and businesses. - Improvements and upgrades to the City's information technology system would help in faster processing of licenses and tax forms. The clerk's office does have a program that would speed up the process; however, they report not having the staff time needed to implement it. It was also suggested that an IT system better integrated across departments would improve the process. The weekly meeting of department managers to discuss projects is seen as a valuable tool for staying on top of developments that impact multiple departments. • It was reported both inside and outside the City that the process for leasing City property and space, including boat slips, is confusing and takes too long. One suggestion is for the City to produce a simple guide to leasing property. Business Interviews The consulting team interviewed a number of local businesses individually and in a focus group format. Below is a summary of the key findings. Many businesses reported that, historically, the City of Seward has not been business friendly. However, in recent years new leadership and staff resulted in improved customer friendliness. Considerable frustration was expressed that City leadership does not "hear"the concerns of the business community. There is a perception that City leadership lacks a private sector mentality. Many questioned the commitment of City government to expanding private sector investment in Seward and diversifying the tax base. They point to the fact that most of City's large economic development assets and significant investment involves the public sector, resulting in a declining private tax base. Because Seward is relatively land-locked, less land is available for private ownership and development. Many fear this is not a sustainable model for long-term economic vitality in Seward. The shrinking private tax base has resulted in higher taxes and fees on existing businesses and their customers. Several commented that the City actually competes with the private sector and cited examples of the boat harbor, the Seward Marine Industrial Complex, and the Seward Resort. The City should evaluate privatizing its primary economic development assets where it can. There needs to be an ongoing forum between City leaders and the business community held outside of the City offices. The positives aspects about living and working in Seward are too great that the local economy should suffer due to a lack of direct communication between the City and businesses. TIP Strategies, Inc.&UACED 11 Seward Economic Development Assessment Report Web Profile Websites for the City of Seward and the Seward Chamber of Commerce are both professional, Economic Development Websites attractive sites. However, each is lacking key Surveys of site selectors and corporate real estate components critical for prospective investors and professionals suggest the most important source of primary information in the site selection process is an site selectors. The adjacent text box provides economic development website. This is especially true information on fundamental pieces economic during the first stage of the site selection process, when development websites should include. For example, site selectors are far more likely to utilize an economic the City and Chamber websites should link to a development organization's website than contact the downloadable and printable community profile organization by phone. Consequently, many communities containing standard information site selectors are eliminated from the site selection process without ever require. Information on the business and investment being contacted. A comprehensive and professional climate in Seward should also be offered in a more economic development website is, therefore, the most downloadable and printable format. The sites also critical marketing tool for communities and economic lack lists or links to available buildings/properties development organizations. Economic development and key economic development assets. The websites should include the following basic features: Anchorage Economic Development Corporation's • Community profile. This section should contain (AEDC) Anchorage Prospector site does list information on area demographics. Community commercial, retail, and industrial sites/buildings for profiles also often highlight primary quality of place sale or lease in Seward; however, neither the assets, such as school district descriptions and basic Chamber nor the City provide a link to the site. statistics, higher education institutions description and location, arts and entertainment facilities, and Moreover, it is not clear from either the City or any other amenities. Chamber site the appropriate process for prospects to initiate a business location inquiry. For instance, • Business climate. This section should contain information on the area's workforce, major the Chamber site identifies the Community employers, target industry profiles, tax rates, utility Development Department as "a great first stop for any business seeking to relocate to Seward." providers and rates (if available), transportation However, the City site encourages businesses to access, and available incentives. "utilize the Seward Chamber of Commerce to help • News. The news section should contain initiate business opportunities in the city." The City announcements of any new initiatives of the and Chamber should establish a formal protocol for economic development organization, as well as any prospect assistance, which is then clearly described events or happenings in the community that have online and in printed literature. economic development implications. Printed Materials Additional sources of information for prospects include a list of available buildings and sites in the region and maps The Seward Chamber of Commerce produces an indicating where major economic development assets are attractive packet of brochures for visitors and located. tourists. A brochure is also included describing economic development and business assets such as Seward Marine Industrial Center, the port, and the Seward Small Boat Harbor. However, the packet lacks a community profile or basic information regarding business climate. Such pieces should be developed for the Chamber Website and included in the printed packet. TIP Strategies, Inc.&UACED 12 Seward Economic Development Assessment Report Recommendations Based on the information gathered during the assessment, the consulting team is prepared to make the following recommendations as to how Seward can more effectively accomplish its economic development goals. Involve the Existing Business Community Perhaps the most important contributing factor to a successful economic development program is the involvement and support of the existing business community. The best led and funded programs will not succeed over the long term if local businesses do not actively participate and contribute to economic development efforts. This involvement includes fundraising, participating in business roundtables, meeting with other local businesses, hosting new investment prospects, and attending prospect call trips to other cities. There are obvious reasons for involving local businesses. First, the core element of any economic development program is business retention and expansion (BRE). Taking care of existing businesses should always be the priority. If those businesses do not perceive any value from, or have trust in local BRE efforts, they are less prone to support other economic development activities such as workforce development, marketing, and business recruitment. They are also less likely to be anchored in the community and more likely to relocate. In terms of attracting new employers, existing businesses are in a position to make the strongest case for investing in Seward. It is one thing to hear from public officials why Seward is the best place to invest and prosper, it is quite another to hear it from business leaders who are actually there. Moreover, involving local businesses in recruitment and attraction activities will demonstrate to prospects that the City and business community are partners. This, in turn, will enhance their confidence in investment climate of Seward. Recommit to Expanding the Private Sector Economic Base As mentioned above, several Seward business people questioned the commitment of City government to expanding private sector investment in Seward. They point to the fact that most of city's large economic development assets and significant investments involve the public sector. This has resulted in a declining private tax base and thus a heavier direct and indirect tax burden on existing businesses. Because Seward is relatively land-locked, less land is available for private ownership and development. Many fear that this is not a sustainable model for long-term economic vitality in Seward. To address this trend, the City and Chamber must jointly commit to more aggressively retaining, expanding, and attracting private investment. This likely will involve greater resources dedicated to economic development. It is the view of the consulting team that the Chamber is the proper organization to lead Seward's economic development efforts. However, before any resources are spent, a community-wide economic development strategic plan should be developed and put in place to guide how resource allocation. Organize Economic Development Teams A key step in positioning Seward for attracting new investment is organizing local leaders and experts to host and call on new investment prospects. Business attraction is a highly competitive pursuit, especially in the current economic environment. Having a well-prepared and enthusiastic team of local leaders and business representatives able to make the case why Seward is the best destination for new or expanded private investment is a standard and effective business attraction strategy. TIP Strategies. Inc. &UACED 13 Seward Economic Development Assessment Report Hosting Prospects In setting up the itinerary for the site visit, TIP ,�, ,,. , �A « requested a first meeting with Seward's prospect visit team. A prospect visit team serves as community Prospect Visit Team representatives for hosting new location prospects and Essential to a successful site visit by new location usuallyconsists of important prospects is a planned, thorough presentation by key p public, economic community representatives. Hastily assembling a site team development, and business officials. TIP's reason for will not allow the community to present its best case for requesting an initial meeting with such a team in attracting new employers and investment. In order to be Seward was to simulate the sales pitch and successful, a prospect visit team must be selected and information a team generally provides to an prepared well before a site visit is scheduled. In investment prospect. However, TIP was informed that assembling a team, the following areas should be covered; a formal prospect visit team does not exist in Seward. • financing The consulting team recommends that the City and • training Chamber assemble a prospect visit team consisting of • Chamber staff, elected and appointed City officials, education and representatives of the business community. The • sites and buildings purpose of a prospect visit team is to have a pre- • utilities assembled group of community representatives who • can provide comprehensive answers to a prospect's labor questions regarding why Seward is the best location • local government for their business. • taxation Ca/ling on Prospects quality of life In addition to hosting prospects, the community Representatives from these areas could include local should regularly organize a team of public, Chamber, business leaders, economic development and/or chamber and business leaders to call on outside companies — executives, educational leaders, elected officials, including those who already have a presence in appointed officials (city manager, fire and police chief, Seward or are prospects for new investment. The service director, water and wastewater operators), and purpose of a call team is to express gratitude for an local utility managers. existing presence or to educate new prospects about ., the advantages Seward has to offer. Such a team would not be the same as the prospect visit team. The composition of the call team can be rotated, but should always include existing business representatives in the mixture. They are a community's best ambassadors for new investment. A group of Seward officials and businesses already travels to Seattle to visit with large companies doing business in Seward. This practice should be continued and expanded to call upon prospective businesses as well. Offer Expedited Permitting The City of Seward should explore adopting an expedited permitting process for qualified new, expanding, or relocating businesses. Such a process would commit the City to streamlining and simplifying governmental permitting processes where possible. Such an incentive offers a business-friendly environment allowing companies to locate and expand in the community rapidly and efficiently. Develop a baseline. A comparison of Seward's development review and permitting process with peer and competitor communities is an important fist step. If no such baseline comparison already exists, then TIP Strategies, Inc. &UACED 14 Seward Economic Development Assessment Report the City should begin tracking the review time for different categories of permitting (i.e., residential/commercial and infill/greenfield development). At the same time, the Chamber should gather information from the benchmarks and begin comparing this data with Seward's, Establish a "One-Stop Shop." Many communities have benefited from a single location for permitting and development review. Instead of having various departments (from the fire marshal to the public works director) at various locations, a single stop helps expedite development and reduces bureaucracy, creating a more business friendly environment. In Seward a one-stop should would require a reorganization of staff and facilities. Set clear standards and follow them. Developers require a level of certainty. To help achieve this goal, the City of Seward should ensure that current policies and codes are logical, clearly written, and enforceable. Craft a development-related incentive policy. To encourage innovative and responsible development, the City of Seward should establish specific criteria regarding design standards, employment and wage targets, and other community goals that would trigger incentives for desirable projects. Examples of incentives would include a streamlined or"fast-track" review and approval process, waivers or reduction of the project's development-related fees, or in some cases, tax abatements or credits. Expand Business Retention and Expansion Program The City of Seward and the Seward Chamber of Commerce should collaborate to expand the community's business retention and expansion program. Successful, stable businesses form the foundation of a community's economy. When existing businesses thrive, so does the community. The U.S. Chamber of Commerce estimates that 40 percent to 80 percent of all new jobs are created by existing firms. Prosperous, competitive businesses are more likely to remain and expand in the community and, thus, provide the best opportunity to expand a community's tax base. Yet, existing firms can also pose the greatest economic threat to a community, should they close or relocate. Thus, a formal business retention and expansion (BRE) strategy should lie at the heart of any economic development program. Indeed, surveys of economic development organizations across the United States rank BRE as the number one economic development activity. A BRE program can identify the concerns and barriers to survival and growth that local businesses face, particularly during difficult times. A formal BRE program also demonstrates support for existing firms. Such support is crucial, as established businesses often get overlooked in a community's enthusiasm to recruit new headline-generating businesses. Yet, keeping existing companies happy and successful can help with business attraction, as firms considering moving will often talk to existing firms in the community. Below are common BRE activities the Chamber and City should consider adopting if not already in practice. Develop and maintain a comprehensive inventory of existing businesses and available properties. Use publicly available business records, such as tax records, utility hookups, and ownership transfers as good sources of information to maintain an up-to-date inventory of existing businesses and available property. Call on existing businesses — including all major employers — to gauge the ability and needs of local businesses to operate successfully and possibly expand in the community. TIP Strategies, Inc.&UACED 15 Seward Economic Development Assessment Report Consider including City, Chamber, business, and elected officials in visits to existing businesses. Host regular business roundtables to give local businesses the opportunity to meet face-to-face with economic and community development staff and to stimulate discussion. Establish incentive policies (such as fast-track permitting) that can apply to the expansion of existing businesses and are not directed solely at the recruitment of new industries. Raise awareness of available technical and financial assistance programs, including workforce development and incentive opportunities. Consider establishing a formal internship/apprenticeship program to aid in the transfer of vocational students to entry-level positions among existing local employers and/or targeted sectors. The presence of AVTECH in Seward should provide a wealth of talent to fill apprenticeship positions. Ensure that adequate networking opportunities for local business owners exist. This should include the opportunity to discuss issues on a topical basis (e.g., workforce, supplier networks, and local taxes and fees). Conduct a regular employer survey as a means for keeping in touch with local businesses and documenting specific needs or concerns. Conduct personal interviews for key regional employers. Review development regulations, ordinances, and approval processes to ensure that the City is responsive to the small business community. Create a small business ombudsman position to serve as the primary point of contact for new and small businesses in the area, as well as to act as a liaison between the business community and relevant government departments and commissions. Work with the financial community and other economic development groups to improve access to capital, a critical factor in small business and entrepreneurial development. Promote existing small business programs and services. This includes working with area small business development centers and other relevant organizations to ensure that they market their services to local businesses and entrepreneurial ventures. Develop a "rapid response"strategy for dealing with potential layoffs or closures. TIP Strategies, Inc.&UACED 16