Leadership Denver.ED 101 What you will learn in this session How to - - PowerPoint PPT Presentation

Leadership Denver….ED 101 What you will learn in this session…

How to explain economic development to your friends AND be the center of attention at all your parties

Good News Everywhere

• #1 Economy in the nation
• # 2 Most highly educated state
• #1 Lowest obesity rate in nation
• #3 State economy
• #1 Physical activity
• #1 Best place for business and careers
• #1 City and region for job growth
• Top 10 cities for population growth - Denver

Employment growth varies across the state

Source: U.S. Bureau of Labor Statistics.

Metro Denver has highest median household income

Source: U.S. Census Bureau, American Community Survey 2013.

Area (Median HH Income)

Migration of people

U.S. migration vector from East to West remains unchanged.

Colorado now “first choice”

• f 25-34 year old migrants

New vector from Latin America

Population Growth

Northwest

Projected Annual

• Avg. Population

Growth by 2035:

1.0% Southwest

Projected Annual

• Avg. Population

Growth by 2035:

1.1% Northeast

Projected Annual

• Avg. Population

Growth by 2035:

2.6% Southeast

Projected Annual

• Avg. Population

Growth by 2035:

1.7%

Metro Denver Annual l Change i

Source: Colorado Division of Local Government, State Demography Office.

Job Growth

North west

Projected Annual Avg. Employment Growth by 2035:

1.3% South west

Projected Annual Avg. Employment Growth by 2035:

1.2% South east

Projected Annual Avg. Employment Growth by 2035:

2.0% North east

Projected Annual Avg. Employment Growth by 2035:

1.9%

ED = IFR

• I Follow Resources
• I Follow Rivers
• I Follow Railroads
• I Follow Roads
• Instrument Flight Rules
• Information Fiber Routes
• International Flying Routes
• I Follow readin’, ‘ritin’, and ‘rithmetic.
• I Follow roof tops
• I Follow rich people

The Basics

The purpose of economic development is to give greater numbers of people greater access to wealth. To do so, your job is to increase “income” coming into your market.

• There are Two Types of Income
• Export income
• Primary income

Export Income

Export income occurs when a market produces more goods and services than can be absorbed by the local marketplace. Products and services are “exported” to

• ther markets in exchange for cash.

Primary Income

• Primary income results from people, usually

tourists, who come to the local marketplace to visit an “attraction.”

• Advertising is the usual means to inform tourists of

the attractions.

• Ski resorts, sports teams, arts and culture are typical

destinations for primary income producers.

Message (ads)

Jobs that generate “primary” or “export” income are called “Primary Jobs.”

• Primary jobs are the principle focus of economic

development and are the platinum standard in

• ur profession. That’s why we chase them and

why they’re so expensive to get.

• Primary jobs create new wealth in a community

and replace dollars that flow out to other markets for services not available in the local market.

• Primary jobs can be found in “clusters” or not

“Spin-off” or Support Service Jobs

• Each primary job creates a demand for services

provided by other workers in the local market.

• These spin-off jobs either support or provide

needed inputs into primary jobs.

• They do not create new wealth. They exist

because of the primary or export income already circulating in the local economy.

The “multiplier” effect

• Is a way to express the number of spin-off jobs

generated in support of a primary job.

• Some primary jobs have greater multipliers than
• thers. This depends on two things:

The number of inputs required to make the product, and The magnitude of the wages paid for the primary job.

• Typical Metro Denver multiplier: 2.0 – 2.6

Guided missiles = 3.0+ Retail trade = .3 - .6

Economic Impact and Economic Activity

• Commonly confused and can lead to really bad

public policy decisions

• Example: Colorado Rockies baseball generates

approximately $100 million in revenue from tickets alone. What is the economic impact of Rockies’ ticket revenues on Metro Denver?

• Well……………..it certainly is $100 million in

economic activity, but how can you tell what’s the economic impact? What data is missing here?

Economic Drivers: Innovation Clusters in the Metro Region

Seein ing Ourselv lves as Oth thers See Us Th The Power of f Regionali lism

• The economic powerhouses in the world are no longer countries, but

the metropolitan regions within them.

• The Top 100 metropolitan areas sit on only 12 percent of the U.S.

land mass but are home to two-thirds of our population and generate 75 percent of the U.S. GDP

• Metro Denver was among the first regions in the country to see,

think and act regionally.

• Pena’s “Water Card”
• DIA
• Metro Denver Network
• SCFD
• Stadiums
• FasTracks
• Lowry

What is a “Cluster”?

• Cluster should not be confused with the

vernacular, which we now call a “Monkey Wedding.”

• “Cluster” is a grouping of employers who

congregate in a market for mutual support, trade, work force skills or available resources

Metro Denver Industry Clusters Growth over Six Years 2005 - 2010

Aerospace

Aviation

Medical Devices Pharma

Telecom Cleantech

Fossil Fuels Banking/Finance

Insurance Investment IT/Software

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Nine-County Location Quotient Relative to U.S. (Avg.=1.0) Total Employment Growth (2005-2010)

Metro Denver Industry Clusters 2012-2013

Aerospace Aviation Medical Devices Telecom Cleantech Banking/Finance Insurance Pharma IT/Software Investments Healthcare & Wellness Fossil Fuels

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

• 0.5%

0.5% 1.5% 2.5% 3.5% 4.5% 5.5% 6.5% Nine-County Location Quotient Relative to U.S. (Avg.=1.0) One-Year Direct Employment Growth (2012-2013)

2014 - 2015

 60 minutes from

international airport

 Proximity to markets  Labor

skills/availability

 Tax and regulatory  Close to major

universities

 Broadband  Quality of life issues  Cost of doing

business

 Strong and stable

political leadership

 Incentives  New or planned

infrastructure

Why Companies Locate

60 minutes from international airport Proximity of markets Labor skills/availability Tax and regulatory environment Close to major universities Broadband availability Quality of life issues Cost of doing business Strong/stable political leadership Incentives New or planned infrastructure

Rate Metro Denver

“Every city gets to make “century”

• decisions. In all of these there is
• nly one common element – the

business community brings ‘continuity’.” Bruce Rockwell

The Century Decisions Prior to 1980

Denver Pacific Railroad to Cheyenne, Wyoming The water decisions of the 19th & 20th centuries The Moffat Tunnel The City Beautiful Movement Stapleton The Valley Highway Lowry and Fitzsimons purchases

City and County Building 1934 -2006

1930’s – A New “Port”

Stapleton Airport

• pens as Mayor Ben

Stapleton sees the

• pportunity of

commercial air service

“The man who insists upon seeing with perfect clearness before he decides, never decides.”

Frederic Amiel

A culture of collaboration

• Putting an end to years of suspicion, prairie wars and ill will

following the Oil Bust of 1983.

• Scientific and Cultural Facilities District (arts and culture)
• Metro Denver Network (economic development)
• Stadium District
• Metro Mayors Caucus (regional policy – transportation,

housing, infrastructure projects)

• DIA – sort of, but “regionalism” brings home a new, better
• pportunity
• FasTracks

Regionalism becomes our trademark

• National media, syndicated columnists, Brookings

Institute, Governing Magazine, Fortune, Forbes, WSJ, London Times, New York Times, Boston Globe, LA Times….. “Denver’s collaboration results in stronger, more diversified economy.”

• Compare to 1984 headline in Forbes: The Denver

Economy: You Can’t fall off the floor.”

A $1.04 billion gift for collaboration

• Gold Line, Westminster Line and DIA Line receive

massive infusion for construction of three transit lines.

• Secretary of Transportation Ray LaHood, when

presenting check to RTD said, “I can say this without a single contradiction of all the 200+ metro areas I’ve visited as USDOT Secretary, ‘there is no more collaborative metropolitan area in the nation, than Denver.”

The Century Decisions since 1990

Mountain Backdrop DIA Fitzsimons and Lowry The 470s Lower Downtown T-REX and FasTracks

DIA

The 21st Century Decisions

• FasTracks and Union Station
• Doubling the Airport for 100

million passengers

• Fixing I-70, east, west and thru

town

Partial Cover Lowered Option



Remove viaduct between Brighton and Colorado Blvd. and put I-70 below ground



Cover highway near Swansea Elementary



Keep Purina Plant and Swansea Elementary



Greater cost and ROW impacts

High Speed Rail on the Front Range, with a stop at DIA for kicks

Rate Metro Denver

60 minutes from international airport A Proximity of markets C- Labor skills/availability A- Tax and regulatory environment B+ Close to major universities B Broadband availability A Quality of life issues A- Cost of doing business B- Strong/stable political leadership B Incentives C+ New or planned infrastructure A+

Location Element Grade

Other 100 year decisions await you

• Fund higher education in a manner that makes a

college education attainable to middle class families.

• The smartest kids in the country through P-20

education reform.

• A new strategy for water – a 75 year “band aid”.
• An end to oil dependency…for a least 100 years.

“I like to see a man proud of the place in which he lives. I like to see a man live, so that his place will be proud of him.”

Abraham Lincoln

Remember…..You are judged not by where you are today, but where you are going tomorrow. If you don’t know where you’re going…any consultant can take you there.