4th quarter updated 2013-14 - asu digital...

INDEX

2 Economic Development Division August 21, 2014

TableofContentsINTRODUCTION ............................................................................................. 3

ECONOMIC DEVELOPMENT OUTLOOK ................................................... 5

ECONOMIC TRENDS .................................................................................... 7

RETAIL ...........................................................................................................10

INDUSTRIAL/OFFICE DEVELOPMENT ...................................................... 13

TOURISM ...................................................................................................... 18

DOWNTOWN.............................................................................................. 20

INTRODUCTION


Economic development activity continued on a positive trend during the fourth quarter. For the quarter ending June 30, 2014, Economic Development staff combined efforts identified 37 leads and 21 prospects, representing an estimated 530 jobs, occupying approximately 484,014 square feet of space and $48 million in capital investments.

4th Quarter Combined Efforts

Retail Industrial/Office Total Leads 11 26 37 Prospects 8 13 21 Jobs 50 480 530 Square Footage 72,332 411,682 484,014 Capital Investment $48,033,653 $48,033,653

Retail: During the fourth 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. For Q4, Retail staff participated in the following activities:

Activity Location Date ICSC ReCon Convention Las Vegas, NV May 18-20, 2014 For Q4, Industrial/Office staff participated in the following activities:

Activity Location Date Building a Valley Cluster Tucson, AZ April 10, 2014 GEPEC Sales Mission Dallas, TX April 22 - 24, 2014 AAED Spring Conference Tucson, AZ April 30 – May 2, 2014 CoreNet Young Leaders Presentation Chandler, AZ June 4, 2014 GEPEC Sales Mission Boston, MA June 17 - 20, 2014 Bio International San Diego , CA June 22 – 25, 2014 Valley Partnership Economic Development Panel Phoenix, AZ June 27, 2014

Tourism: Tourism staff conducted the following trade and media activities for Q4:

Activity Location Date Guadalajara Tour Operator FAM Chandler, AZ May 14-17, 2014 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

INTRODUCTION


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.

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 244,161 citizens and approximated 97,469 housing units located in the City’s borders as of June 1, 2014. 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, and targeting retail markets and linkages to key census information, which assists in presenting available sites.

99,866 83,000 86,948 72,332

259,903

587,953

229,541

411,682

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Q1 Q2 Q3 Q4

Square FootageFY 13‐14

Industrial/Office S.F.

Retail S.F.

99,866 145250 50

1,312

2,962

178 480

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1 Q2 Q3 Q4

Jobs CreatedFY 13‐14

Industrial/Office S.F.

Retail S.F.

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, higher education choices and a pro-business record lay the groundwork for healthy job creation and employment opportunities.

Q1 Population 242,115 242,193 242,307

Jul. Aug Sep

Q2 Population 242,406 242,564 242,684

Oct Nov Dec

Q3 Population 243,559 243,694 243,796

an Feb Mar

Q4 Population 243,884 244,080 244,161

Apr May Jun

Source: City of Chandler Planning Division June 1, 2014

Population Growth

Source: City of Chandler Planning Division

Source: City of Chandler, Sales Tax & Licenses

ECONOMIC TRENDS


According to the Arizona Department of Commerce, by the end of Q4, the City of Chandler’s average unemployment rate is 4.9% while the City of Phoenix has a 5.9% unemployment rate and the state of Arizona has a 6.8% unemployment rate.

July Aug Sep Oct Nov Dec

Q1 Q2

1st & 2nd Quarter Unemployment RateFY 13‐14

Arizona

Phoenix

Chandler

Source: Arizona Department of CommerceSource: Arizona Department of Commerce

Jan Feb Mar Apr May Jun

Q3 Q4

3rd & 4th Quarter Unemployment RateFY 13‐14

Arizona

Phoenix

Chandler

Source: Arizona Department of Commerce

ECONOMIC TRENDS


Employment Occupation Data identifies and analyzes total employee counts per establishment within various industries.

During the fourth quarter, the number of employed citizens reflects 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 an average of 1,340 jobs to its 127,746 total from the previous quarter; a 1.04% increase.

0.2%

16.6%

39.8%

7.7%

27.6%8.3

Employment By OccupationFY 13‐14

Farming, Forestry & Fishing

Service & Occupation

Managerial & Professional Service

Production, Transport, Material Moving

Technical Sales & Administrative Support

Construction, Extraction, MaintenanceSource: Claritas

Q4 Apr. 129,115

Q4 May. 128,937

Q4 Jun. 129,207

Chandler's Employment NumbersFY 13‐14


ECONOMIC TRENDS


125,825

125,684

126,667

126,299

127,312

127,318

126,677

127,341

129,220

129,115

128,937

129,207

5,000 50,000 500,000 5,000,000

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Q1

Q2

Q3

Q4

Employment Comparison: Chandler vs Arizona

FY 13‐14


RETAIL


Economic Development Retail staff located three new companies that included two restaurants and one ice-skating and entertainment center to the City of Chandler.

Specific Q4 Retail Activities:

1. Jimmy John’s In 1983, Jimmy John Liautaud checked out a handful of cookbooks from his local library, and perfected his award-winning bread. After creating four sandwiches, Jimmy tested them on friends and family. Without hesitation, he opened the very first Jimmy John's with a whopping $200 a month in rent and used equipment consisting of a refrigerator, a chest freezer, an oven and a meat slicer. College kids loved the low price, great food, and the fact that they delivered. To-date, with over 1,900 stores open, Jimmy John’s signature bread is baked in-house every day and the meat and veggies are sliced in-house to be served fresh every day. Jimmy John’s is proud to serve real turkey and roast beef without additives or vegetable-based fillers, because Jimmy John's wants only the best.

2. Café Rio

In 1997, Steve and Patricia Stanley used inspired recipes and traditional cooking from Northern Mexico's Rio Grande, Southern Texas, and New Mexico, to open the first Café Rio in a small town call St. George in southern Utah. Due to the huge success of the first Café Rio, the Stanley’s opened six additional locations in Utah.

Q 1 Q 2 Q 3 Q 4

Retail Leads & ProspectsFY 13‐14

Prospects

Leads

RETAIL


In 2004, Bob Nilsen and his team purchased the six restaurants that the Stanley’s created and pushed them outside Utah. The six Café Rio restaurants grew to 73 locations in Arizona, California, Montana, Wyoming, Nevada, Colorado, Idaho, Maryland, and Virginia.

3. Ice Den - Reopening The Ice Den is a state-of-the-art ice-skating and entertainment center. The facility will fulfill the diverse sports and entertainment needs for many Arizona families and businesses.

Chandler’s Ice Den renovation and revitalization project began in April 2014. The renovation will allow the venue to be utilized in the summer months for indoor soccer, lacrosse, day camps, and other activities. In addition, other amenities that will be added include a new retail shop for hockey and figure skaters, and a fully redesigned café and snack food area. The Chandler location will offer “learn to skate” programs at the facility. All renovation should conclude by the end of the summer 2014.

In this quarter, staff assisted new ownership of the Ice Den in the nearly completed renovation of the space. Jimmy John’s represents the reuse of a former Quizno’s location. Café Rio is taking over the former Tonic Lounge space at Chandler Gateway across from Chandler Fashion Center.

Ret

ail

NAME LOCATION JOBS S.F. 1st Quarter Locates

Cheddar’s Loop 101/Chandler 50 6,600Villari’s Martial Arts Arizona/Warner 5 5,045Conn’s Loop 101/Chandler 50 33,000Earnhardt Chandler Cadillac Gilbert/Loop 202 45 29,000

Ret

ail

NAME LOCATION JOBS S.F 2nd Quarter Locates

Firehouse Subs Arizona/Ocotillo 20 1,800Panera Bread Arizona/Ocotillo 40 4,200

Staybridge Suites McClintock/Chandler 60 75,000Sonic Arizona/Germann 25 2,000

RETAIL


Ret

ail NAME LOCATION JOBS S.F.

3rd Quarter Locates Ocotillo Village Health Club Alma School/Ocotillo 220 82,000Sir Vezas Loop 101/Chandler 30 4,948

Ret

ail

NAME LOCATION JOBS S.F.4th Quarter Locates

Jimmy John’s Arizona Ave./Loop 202 15 2,137 Café Rio Loop 101/Chandler Blvd. 35 2,905 Ice Den - Reopening 54th St./ Galveston 0 67,290

Economic Development and job creation accompany one another and job creation offers ways to advance the economic security of the city’s population.

Staff efforts in this quarter produced 50 new jobs and occupied 72,332 square feet of retail space. By the end of the 4th quarter, staffs combined efforts created 595 new jobs and occupied 315,925 square feet of retail space.

73,64583,000 86,948

72,332

Q1 Q2 Q3 Q4

Retail Total Square FeetFY 13‐14

150 145

250

50

Q1 Q2 Q3 Q4

Retail Total Jobs Created

FY 13‐14

INDUSTRIAL & OFFICE


Economic Development Industrial and Office staff efforts located four new companies to the City of Chandler with a wide range of office and industrial retention and expansion sites.

Specific Q4 Industrial/Office Activities:

1. FedEx Chandler Airpark FedEx’s distribution center for its ground operation is located near the northwest corner of Queen Creek and Gilbert Road. This facility will be part of FedEx Ground, a division of the larger FedEx Corporation that specializes in delivering small packages via trucks. This FedEx location will be the fourth distribution center in the Valley.

2. Premier Cardiovascular Center Premier Cardiovascular Center (PCC) is a Phoenix-East Valley based cardiology practice with office locations in Chandler, Sun Lakes, and Casa Grande. The state of the art facility has eight board-certified cardiologists, including two interventional cardiologists, four invasive, and one non-invasive cardiologist. PCC offers a full range of diagnostic services, including consultation and evaluation, exercise stress testing, cardiac catheterization, cardiac interventional procedures, Holter/Event monitoring, Pacemaker assessment, Stress Echo/Pharmacological Stress Echocardiogram, Transesophageal Echocardiography and Cardiac, Carotid, Abdominal, and Vascular. In addition, they service Finger Stick Protime testing and blood draw. The interventional cardiology services include Intravascular Stenting,

Q 1 Q 2 Q 3 Q 4

Industrial & Office Leads & Prospects

FY 13‐14

Prospects

Leads

INDUSTRIAL & OFFICE


Artherectomy, Balloon Angioplasty, Intravascular, Ultrasound Peripheral Vascular Interventions, and Thrombolysis.

3. Old Castle Precast Oldcastle Precast is the leading manufacturer of precast concrete, polymer concrete, and plastic products in the United States with more than 80 locations nationwide. Old Castle Precast products are designed for strength and durability, and their products range from utility vaults, reinforced concrete pipe, catch basins, drainage and septic tanks, to retaining walls, storm shelters, wall panels, concrete barriers, and more. Old Castle Precast is always looking for new ways to minimize waste, increase recycling, improve energy management, and use eco-friendly materials.

4. Mayo Clinic Mayo Clinic primary care facility doctors provide comprehensive care for everyone who needs healing. They can provide both pediatric and adult/geriatric care. The primary care providers at Mayo Clinic will handle most of their patients care and will collaborate with a multidisciplinary team of Mayo medical and surgical specialists. Providers have expertise in all aspects of family-oriented care, including family development, family planning, pediatrics and child rearing, aging, end-of-life issues, counseling and education, nutrition, and preventive care.

5. NXP Semiconductor NXP Semiconductor, strides to understand their customer’s vision and requirements to shape the perfect device and user experience. NXP Semiconductor’s innovative solutions deliver greater energy efficiency, safety, security, convenience and functional performance. Combined with application insights, sub-system expertise and standard products, NXP Semiconductor can provide multiple solutions to engineering problems, working to enable secure connections for a smarter world.

6. Maxim Integrated (expansion) Maxim Integrated invents highly integrated solutions that make technology seamless. Their mobile expertise helps to keep Maxim Integrated ahead of electronics trends and the competition. Whether the need is to power the

INDUSTRIAL & OFFICE


latest multicore processor, deploy an advanced user interface, or get more runtime from an electric powertrain, their integrated analog solutions will help win the race to market.

7. Axiom Brewing Company, LLC Axiom Brewing Company, located near 56th Street and Frye Road, believes that good process and patience yield good products. At Axiom Brewing Co., they focus on manufacturing and distributing meads and ciders.

Indu

stria

l/Offi

ce NAME LOCATION JOBS S.F. CAPITAL INVESTMENT

1st Quarter Locates Roeshan Systems McClintock/Chandler Blvd 2 0 $0General Motors Financial McClintock/Santan Fwy 202 1,000 169,903 $20,690,107Garmin McClintock/Ray 110 60,000 $7,600,000Oragami Owl Chandler Blvd/54th St 200 30,000 $1,572,353

Indu

stria

l/Offi

ce

NAME LOCATION JOBS S.F. CAPITAL INVESTMENT 2nd Quarter Locates

Virtual Scientific Chandler Innovations 2 0 $0Arizona Nutritional Supplements 56

th/Frye 200 126,740 $8,600,000

Alliance Bank Ray/Price 40 27,017 $3,525,000Black Diamond Advance Technology Germann/Cooper 70 24,196 $600,075

Wells Fargo Phase II Queen Creek/Price 2,650 410,000 $78,212,796

Indu

stria

l/Offi

ce

NAME LOCATION JOBS S.F. CAPITAL INVESTMENT 3rd Quarter Locates

Rinchem 56th/Frye 40 79,895 $8,672,852ASU Innovation Center Arizona /Frye 40 37,000 $6,100,000Insys Therapeutics Frye/Elliot 25 32,000 $3,840,000Savage Universal Elliot/Arizona 40 68,971 $5,387,655Hiring Solved Frye/Arizona 12 3,000 $12,000Pattont Law Group Chandler/Arizona 15 7,500 $0Clairvoyant (Expansion) Chandler Innovations 6 1,175 $0

INDUSTRIAL & OFFICE


1,312

2,962

178480

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Industrial/Office Total Jobs Created

FY 13‐14

Indu

stria

l/Offi

ce

NAME LOCATION JOBS S.F. CAPITAL INVESTMENT 4th Quarter Locates

FedEx Queen Creek/Cooper 200 302,000 $35,000,000Pemier Cardiovascular Center Dobson/Chandler Blvd 40 17,500 $3,888,150

Old Castle Precast Frye/Delaware 15 53,760 $4,084,403Mayo Clinic Santan Fwy 202/Cooper 25 4,466 $796,600

NXP Semiconductor Chandler Blvd/Kyrene 200 29,316 $3,664,500Maxim Integrated (expansion) Arizona/Elliot 0 3,064 $500,000

Axiom Brewing Co. 56th/Frye 0 1,576 $100,000 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 480 new jobs.

INDUSTRIAL & OFFICE


In Q4, staff efforts occupied approximately 411,682 square feet of industrial and office space, in addition to a projected capital investment of $48 million.

At the end of the fourth quarter, staff combined efforts created 4,932 new jobs, occupied approximately 1,489,079 square feet of industrial and office space and secured $192.8 million in capital investment.

259,903

587,953

229,541

411,682

Q1 Q2 Q3 Q40

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Industrial/Office Total Sqare FeetFY 13‐14

$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000

$100,000,000

Q1 Q2 Q3 Q4

$29,862,460

$90,937,871

$24,012,507

$48,033,653

Capital InvestmentFY 13‐14

TOURISM


0.0%

50.0%

100.0%

Q1Q2

Q3Q4

53.8% 64.2% 77.7%62.0%

Chandler's Occupancy RateFY 13‐14

Tourism staff worked with the Tempe Tourism Office to finalize the 2nd edition of the “Dos Ciduades, un Destino”, a pocket-size map promoting shopping, dining and hotels in the two communities. This map, initially introduced in October 2013, has been well received and initial supplies have been exhausted. In addition, staff finalized the City’s FY2015 Prop 302 Maricopa County Grant Application and hosted individual journalists on assignment from five unique publications, including AOL Travel, Canadian Family, Canadian Traveler, The Toronto Star, and The Tribune papers in Greater Houston. Smith Travel Research, Inc. (STR) has developed the specific Q4 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 are represented in the chart below:

$84.11 $95.76 $120.33$98.19

TOURISM


Metro Phoenix Comparison (FY 13-14) Q1 Q2 Q3 Q4

Occupancy 53.8% 64.2% 77.7% 62.0% Occupancy 50.4% 58.1% 76.4% 61.7% Average Daily Rate $84.11 $95.76 $120.33 $98.19 Chandler Average Daily Rate $83.74 $106.28 $139.50 $108.65 Metro Phoenix Revenue per available room $45.06 $61.51 $93.55 $60.91 Revenue per available room $42.25 $61.71 $106.54 $67.04

* Re-publication or the re-use of this data, without the express written permission of STR is strictly prohibited. Tourism staff also maintains the tourism website, www.visitchandler.com 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, www.Chandlerlocalbites.com or at select locations, local restaurants, hotels, City facilities, and visitor’s bureaus.

DOWNTOWN


The role of Downtown Redevelopment staff was significant in the various projects, activities, and events outlined below throughout the fourth quarter. Specific Q4 Downtown Activities:

Downtown Updates

In Q4 Downtown Redevelopment staff managed the following downtown projects and provided the following updates:

The City, in partnership with the DCCP, began moving forward with the design of a downtown stage aimed at attracting high-quality entertainment and attendees to downtown Chandler. The anticipated stage completion is scheduled for summer 2015.

EMSD – DCCP contract was executed and all documents provided to the County Assessor.

San Marcos Resort closed the golf course and clubhouse for the summer to complete major renovations on the property and anticipates a re-grand opening in October 2014.

Alta Steelyard, a 301 unit high-density residential complex moved through its required community meetings, Planning and Zoning, and City Council, and anticipates breaking ground in fall of 2014.

Website Revision - Staff continues to work on revamping Economic Development Downtown web pages.

Locates Activities

1. The Chop Shop The Chop Shop’s personal love of fresh food and the acceptance of today’s on-the-go busy life styles, combined with the desire to provide people the familiarity of family recipes with a surprising twist of ingredients, is what keeps Chop Shop motivated to serve their clientele at their newest location in Downtown Chandler.

2. Wimpy’s Paradise Randy’s father, Ken Walters, launched the original Wimpy’s Paradise in 1939 in Monongahela, PA. By 1941, Ken opened a second location in nearby Monessen, PA. Ken Walters went to fight in World War II; upon his return, the person he left in charge informed him that both restaurants were closed.

In 2006, Ken’s son Randy began his pursuit of owning a restaurant by purchasing a hot dog cart. After two years, he moved his business – dubbed Pittsburgh Willy’s into a small space inside the Merchant Square Antique Mall about two miles north of Downtown Chandler. Over the next 5 years, Pittsburgh

DOWNTOWN


Willy's, enjoyed considerable success, winning many awards and a huge following of faithful patrons. Late in 2013, Randy made the decision to move Pittsburgh Willy's to a location that had become available in Downtown Chandler.

At approximately the same time, a second property, owned by the same landlord, became available in Downtown Chandler and the possibility of re-establishing his father's dream was finally a reality as Wimpy's Paradise opened its doors in February 2014. Wimpy's specializes in delicious old-fashioned hamburgers and ice cream treats along with old-time candy favorites.

4th quarter updated 2013-14 - asu digital...

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