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52 | November-December 2014

ARIZONA ASSOCIATION FOR ECONOMIC DEVELOPMENT

Arizona has a lot of reputations. It’s a land of lush golf courses installed among desertscapes, a

call center and distribution hub, home to the largest university in the country or some of the less appealing facets that make an economic developer cringe to hear. One organization that has worked for decades to educate Arizonans and the rest of the country about what makes this state great — and what can be done legally to make it better — is the Arizona Association for Economic Development (AAED).

Outside of the AAED, there are a handful of economic development

organizations in Arizona — the Arizona Commerce Authority (ACA), Greater Phoenix Economic Council (GPEC) and Tucson Regional Economic Opportunities (TREO).

The ACA was founded in 2010 by Gov. Jan Brewer. TREO was formed in 2005. GPEC just celebrated its 25th anniversary.

Founded 40 years ago as the Arizona Association for Industrial Development (AAID), AAED is the most established, organized group of economic developers in the state. In 1991, it changed its name to the Arizona Association for Economic Development to reflect its broader focus

AAED turns 40, focuses on putting Arizona ‘On the Map’

By AmANDA VeNturA

Branding arizona

AAED ADVOCATES FOR:-Property tax reduction for companies that “make new and substantial investments in assets and human capital in Arizona”

-Infrastructure development/improvement program throughtax revenue

-Enhanced access to capital, extend Angel Investment Tax

Source: "2014 Legislative Session" at aaed.com

53

In 1974, the Arizona Association for Industrial Development was formed by like-minded individuals who saw the potential for economic development and growth in Arizona. From attracting notable businesses to the state to putting Arizona on the map for future growth, the renamed Arizona Association for Economic

Development has grown nearly five times its original membership.

this infographic shows a number of ways AAeD has become more inclusive in membership and mission and contributed to the development of Arizona over the years.

Betty Niles (AAED president in 1996) uncovered a copy of the first printed AAID/AAED membership directory dated 1975. That year, there were 86 members drawn from the sectors to the right. There

was also only one woman at the time, Donna Ellsworth.

AAED has 480 Members AAED’s membership

AAED is credited with helping in the location of these present day Arizona companies:

96 Rural

Development Organizations51 percent or more of the industrial development program regularly financed through membership, dues or other means of support from private or

civic sources

FinancialBanks, insurance, business

development corporations and other financing agencies

Land DevelopmentRealtors, private development

companies

UtilitiesGas, electric, other

TransportationAll modes, plus port

authorities

Research/Educations/ConsultantsPrivate, civic and public

33 Tucson Metro

346 Phoenix Metro

5 Out of State72% 20% 7% 1% Male v. Female

<1974100% Men

2014 >56% Men; 44% Women

Womenin AAED

First woman president Judie Scalise, 1989

Women currently comprise more than50 percent of AAED’s executive team

First woman memberDonna Ellsworth Bolen, 1975➧ ➧ ➧

86The First

MembersDevelopment Agencies

51 percent or more of the industrial development program regularly financed through appropriations, grants or loans of public funds)

of economic development

Motorola

American Express

GTE

Ford Motor Company

Digital Equipment

Honeywell

Ingersoll-Rand

Intel

Sperry

40YEARS

54 | November-December 2014

AAED

AAED’s 2014 Member of the Year, Susan Hyatt, has chaired the organization’s Professional Education Committee for the last two years, during which more than 600 people have participated in educational programs offered by AAED. For the last four years, she has worked with the committee to bring classes from the International Economic Development Council (IEDC) to Arizona. After facilitating six classes through the IEDC, Hyatt and AAED Executive Director Joyce Grossman brought the Certified Economic Developer (CEcD) exam to the state in December.

It’s safe to say the Arizona Commerce Authority’s vice president of business expansion knows a thing or two or 10 about educating the state’s economic developers. She and a handful of other top-notch economic developers can now also boast being a part of the inaugural graduating class of Arizona Economic Development Professionals (AZED Pros).

The AZED Pro certification will be the first time the IEDC has held an exam separate from one of its conferences.

“I took the courses because I believe in the benefits of life-long learning,” she says. “As we grow professionally, we certainly become more knowledgeable and some of us may even be considered experts. However, there are always opportunities to learn more or gain a deeper, nuanced understanding of some facet of economic development. Also, economic development encompasses such a variety of topics and requires a broad skillset. Takingthese courses helped to strengthen my knowledge in topic areas that I don’t cover inmy day-to-day work.”

To become an AZED Pro, a professional must take two courses in four modules: Arizona’s Economy; Incentives and Business Assistance Programs;

Arizona Taxation; and Marketing and Business Development. The courses can last anywhere between a half and full day and cost up to $150.

“One of the key components of all the courses are case studies, which provide participants real-life, often Arizona-specific, examples of the concepts discussed,” says Hyatt.

Hyatt calls AAED’s education opportunities one of the organization’s greatest contributions.

“The committee has done some great work and increased professional development opportunities in Arizona, especially during a time period when budgets, in both public and private organizations, have been tight and the ability to travel outside of the state to receive training has been extremely limited,” says Hyatt.

Caption: Left to right: Past AAeD President Chris Camacho

with graduates Curt Woody, town of marana; robert Ito,

City of Goodyear; Susan Hyatt, ACA; Jill Buschbacher,City of Phoenix; Joyce Grossman, AAeD; and

2013-14 Presidenteric Larson.

AAED BRINGS TOP ECONOMIC DEVELOPMENT CERTIFICATIONTO ARIZONA

and mission statement, which is to “serve as Arizona’s unified voice advocating for responsible economic development.” AAED’s membership is indeed a unified voice, including economic developers and staff from tribal communities, southern and northern Arizona cities as well as many public and private sector members, even members of the aforementioned economic development groups.

The association, just like the state, has spent some time this year reflecting on imagery and whether or not the three

pillars — professional education, public policy and collaboration — actually hold up to its mission.

“We have transformed from an organization feeling the hit of the recession along with so many others to one that is now thinking about its long-term goals and impacts on a daily basis,” says 2014 President Danielle Casey, director of economic development for the City of Scottsdale.

UNITING ARIZONAEconomic development is a team sport,

says APS’ Statewide Communications and Economic Development Manager David Bentler. APS has been an AAED member since its inception, and Bentler says AAED is the way he stays in touch with the many players working on projects that land jobs in Arizona.

“AAED provides the atmosphere to create a statewide effort that works as a team to bring quality projects to

THOUGHTS FROM PAST PRESIDENTS“AAED has always been my resource for potential buyers who are not familiar with Arizona or the city in which they are looking to purchase. There is no better way to familiarize clients with what is going on in the area and the activities that can improve their business and the leasing of their property. I have found the economic development professionals to be an invaluable resource and they are always willing to assist.”

— Kim Soule, vice president, office and industrial properties, Colliers International Advisors(AAED President 2000)

“We have transformed from an organization feeling the hit of the recession along with so many others to one that is now thinking about its long-term goals and impacts on a daily basis.”— 2014 President Danielle Casey, director of economic development for the City of Scottsdale

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56 | November-December 2014

AAED

Arizona,” Bentler says. “While some states are divided in this effort, AAED has helped instill a professional work ethic and respect among our economic developers that collaborate on projects for mutual success.”

Before any change can happen, AAED needed to realign as an organization. So, last year, it looked critically at how to reinforce its three-pillared mission statement. Casey calls the level of commitment from the board of directors and AAED members to the “strategic plan” over the last year “exciting.”

“Collaboration is the pillar where AAED’s greatness awaits,” says two-year member Marcelino Flores, Pascua Yaqui Council Member. “I have learned that community, workforce and economic development come together at AAED among the many proactive committees.”

Economic development, in broader strokes, also appears to be a matter of unifying the different organizations. When it comes to AAED’s role in diversifying Arizona’s economy, Casey says she has seen tremendous focus placed on business retention and expansion.

“The Arizona Commerce Authority has launched a division focusing specifically on serving the needs of existing businesses and their expansion

efforts, and I have seen positive results firsthand in my own community,” she says. “The Greater Phoenix Economic Council has begun working with its member organizations to help gather market research and intelligence so we can better serve our existing firms. Small communities across the state are thinking of ever more creative ways to encourage entrepreneurship and innovation through partnerships with the (ASU) Alexandria Co-working Network at local libraries, shop local initiatives, and small business training programs and incubators. We are learning to grow our own firms with a focus on quality, high-wage jobs that generate new wealth for Arizona. AAED is helping to facilitate this through its quality educational programming to help teach practitioners and community leaders about the importance of a diverse economy and related strategies, and is creating connectivity among the practitioner community like never before so we can share ideas and learn from each others’ successes.”

EDUCATING ARIZONAAAED made huge strides in

professional education with the implementation of classes from the

Danielle Casey, CEcD, EDFPPresident of AAeDeconomic development director,City of ScottsdaleAAeD member for eight yearsHas worked in economicdevelopment since 2005 WHAT HAS BEEN AAED’S PROFESSIONAL OR PERSONAL EFFECT ON YOU?AAeD has been my singular greatest source of strong professional relationships which has directly impacted my career in a positive manner. You get back what you give to an organization, so it has also been an area where I have found distinct satisfaction from involvement and participation and working to elevate the profession and industry. WHAT IS ONE OF THE MOST SURPRISING

THINGS TO COME OUT OF YOUR AAED MEMBERSHIP?I am surprised at the vast amount of work the AAeD staff and volunteers execute every day, and their collective level of commitment to our pillars: advocacy, education and collaboration. WHAT IS ONE THING YOU’D LIKE TO SEE IMPROVED IN ARIZONA OVER THE NEXT YEAR?I would like to see Arizona do a better job of working on improving its external business brand on a national scale. there are a number of inaccurate perceptions of our state, and it is important that we work in unison across all of Arizona to help raise our profile. DESCRIBE ARIZONA’S DEVELOPMENT CLIMATE IN THREE WORDS: emerging. Careful. Strategic.

Courtney Dunbar, CEcD, EDFP, AICPeconomic development leader, Olsson AssociatesAAeD member for two yearsHas worked in economic development for 18 years WHAT HAS BEEN AAED’S PROFESSIONAL OR PERSONAL EFFECT ON YOU?AAeD plays an integral role in increasing economic development competitiveness throughout Arizona. economic development success requires an understanding of market trends and development best practices. AAeD’s innovative training offerings, educational series, workshops and mixers allow the development community to effectively engage to increase capital investment and promote job creation in their respective local communities. WHAT IS ONE OF THE MOST SURPRISING THINGS TO COME OUT OF YOUR AAED MEMBERSHIP?I anticipated educational and mixer activities when joining AAeD, but I have been pleasantly surprised by the volume of events and robust attendance at events. I am also incredibly impressed with the amount of professional friendships and camaraderie I have gained through involvement in this organization. WHAT IS ONE THING YOU’D LIKE TOSEE IMPROVED IN ARIZONA OVER THENEXT YEAR?Arizona has phenomenal opportunities to attract primary development. However, there appears to be a significant lack of industrial and primary development sites that are prepared adequately to host these opportunities. I believe both the rural and urban markets would benefit from understanding the target primary markets within their areas, investigating attractive tracts of ground locally, and then planning these sites to create a business case to new primary development. effective risk mitigation for end-users begins with a well-understood site option. DESCRIBE ARIZONA’S DEVELOPMENT CLIMATE IN THREE WORDS: Arizona’s development climate is progressive in seeking new and innovative market segments, reactive to market volatility and too often overlooked due to a lack of available primary development sites.

MEMBER SPOTLIGHT

MEMBER SPOTLIGHT

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58 | November-December 2014

AAED

Micah Miranda, CEcDeconomic development director, City of maricopaAAeD member for 12 yearsHas worked in economic development since 2002 WHAT HAS BEEN AAED’S PROFESSIONAL OR PERSONAL EFFECTON YOU?membership in AAeD has had a profound effect in both my professional and personal life. the relationships built over a decade of active membership have created a network of trusted mentors, lifelong friends and great memories. WHAT IS ONE OF THE MOST SURPRISING THINGS TO COME OUT OF YOUR AAED MEMBERSHIP?the most surprising thing about AAeD membership is the opportunity to engage. No matter where your interests may lie, AAeD will absolutely provide an opportunity for your talents to be expressed and utilized. If you are unfamiliar with, but interested in, a particular topic you will be welcomed to participate and learn while on a committee. WHAT IS ONE THING YOU’D LIKE TO SEE IMPROVED IN ARIZONA OVER THE NEXT YEAR?the one thing I would like to see significantly improve in Arizona over the next would be year personal income growth. DESCRIBE ARIZONA’S DEVELOPMENT CLIMATE IN THREE WORDS: Dynamic. evolving. renaissance.

Kirk McClureDirector of business development, mcCarthy Building CompaniesAAeD member for five yearsHas worked in commercial real estate for 15 years WHAT HAS BEEN AAED’S PROFESSIONAL OR PERSONAL EFFECT ON YOU AND YOUR COMPANY?Personally, getting the opportunity to chair great committees and serve on a board that is not stagnant and wants to improve the organization for the future has been rewarding. Professionally, it gives mcCarthy recognition in the community and it shows that we are more than a builder. We are part of the community, which is important to our overall mission. WHAT IS ONE OF THE MOST SURPRISING THINGS TO COME OUT OF YOUR AAED MEMBERSHIP?the most surprising thing to come out of AAeD is the network of really top-notch professionals from around the

state in both practitioner roles, working with the cities and towns as well as the providers like myself. Working for the Arizona Commerce Authority while being a member of AAeD has given me a nice perspective of both sides, and I value what both bring to the table. WHAT IS ONE THING YOU’D LIKE TOSEE IMPROVED IN ARIZONA OVER THENEXT YEAR?I want to see Arizona take education more seriously. From K-12 through all forms of higher education, including community college, trade school and the four-year institutions. Wearing my economic development hat, in order to attract and retain quality companies we need to support funding for education at all levels. Companies look critically at a state’s education infrastructure from a perspective of being able to hire quality employees as well as having good schools for their employees’ children to attend.

DESCRIBE ARIZONA’S DEVELOPMENT CLIMATE IN THREE WORDS: Possibility, Opportunity. Prospering.

International Economic Development Council (IEDC) to Arizona. AAED hosted two IEDC courses in 2010, which resulted in the highest-attended non-conference courses IEDC had seen in years. Over the next year, AAED established The Economic Development Academy of Arizona that launched in January 2012. The course sold out in weeks, says Town of Gilbert’s Business Retention and Expansion Administrator Jennifer Graves, CEcD, a 10-year member and former Professional Education Committee chair. The largest stride thus far happened when the AAED Executive Director Joyce Grossman and Professional Education Committee Chair Susan Hyatt facilitated the Arizona Economic Development (AZED) Pro designation. This marks the first time the IEDC has held an exam separate from one of its conferences. AAED also graduated its inaugural class of AZED Pros earlier this year.

“As one of AAED’s three core focus areas, education plays a critical role in strengthening the organizations position as the leading advocate for economic

development in the state,” says Graves. “If AAED continues to raise the bar and provide meaningful programming for its members and practitioners across Arizona, I believe the organization will continue to see growth in both membership and prominence.”

“One element of AAED’s future that I am very excited to be part of is an initiative to increase the number of aspiring or emerging economic development professionals,” says Hyatt, Arizona Commerce Authority’s vice president of business expansion. “We are not only working to increase the number of emerging economic development professionals in our organization, but we are also developing some programs to provide those individuals ongoing support through mentorship and educational opportunities.”

Education is the basis of professionalism, the beginning of advocacy and the best way to understand values key to collaboration, says Flores.

“This [AZED Pro] designation shows the proactive recognition of a need to do things a little differently in Arizona,” he

THOUGHTS FROM PAST PRESIDENTS“I have been a member since the beginning and AAED is stronger today than 40 years ago! AAED is important to me personally for the statewide contacts and as a tremendous source of support for me at work.”

— Rick Ireland, business development manager, Arrington Watkins Architects (AAED President 1975)

MEMBER SPOTLIGHT

MEMBER SPOTLIGHT

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60 | November-December 2014

AAED

Kim ShapiroSenior director, business development, SkanskaAAeD member for eight yearsHas worked in the designand construction industryfor 17 years WHAT HAS BEEN AAED’S PROFESSIONAL OR PERSONAL EFFECT ON YOU?AAeD has been a great platform to showcase Skanska and our Arizona team to the Valley. the organization has a diverse membership of practitioners and providers who have been supportive on both the professional and personal front. the members are truly approachable, whether you’ve been around for years or are a new member to the organization. WHAT IS ONE OF THE MOST SURPRISING THINGS TO COME OUT OF YOUR AAED MEMBERSHIP?the foundation of AAeD has three solid pillars of the organization: education, advocacy and collaboration. I am continuingly learning about all three areas on the public and private economic development trends, policy changes, continuing education and best practices in our state. In regards to AAeD’s collaboration pillar, I have found AAeD’s membership to not only have a networking component, but AAeD has had a role for me in developing and growing strong relationships that have laid a foundation for building friendships, which have turned into building trust and opportunities that turn into business. WHAT IS ONE THING YOU’D LIKE TOSEE IMPROVED IN ARIZONA OVER THENEXT YEAR?two things come to mind: for Arizona to have a national, recognizable brand for our state and a solidified plan for long-term infrastructure investment to help build the state’s economy. We need to be able to have honest conversations about how we can support our state’s growth so that we have the facilities and infrastructure to ensure long-term success. DESCRIBE ARIZONA’S DEVELOPMENT CLIMATE IN THREE WORDS: Cautious. Constrained. Collaborative.

says. “Some tools practitioners rely on are not available in Arizona. Similarly, some resources, land, people and bio diversity, are treasures the AZED Pros become aware of and use to the advantage of high quality, sustained economic development.”

PUTTING AAED ‘ON THE MAP’Collaboration between the different

regions of Arizona has been a direct interest for many members this year.

“Putting AAED and Arizona ‘on the map’ is a big goal, and after the first year of our strategic plan implementation, I believe it is on track,” says Casey, calling AAED “the leading organization in the state for provision of economic development training for practitioners.”

The organization has also increased its investment in advocacy year-over-year to ensure it becomes a go-to for legislative information that can impact economic development.

“Aligning professionals from rural and urban environments to improve the economic health of our communities” is AAED’s greatest contribution to Arizona, says Jacqui Sabo, sales manager of Goodmans Interior Structures and AAED member since 2008. Sabo has been involved with five of AAED’s 14 committees, including chairing the tribal committee and education efforts.

“This year, I am working on a special education task force to encourage students and mid-career professionals to consider economic development as a career path,” Sabo says. “As a result, we are collaborating within our organization, and it’s been fantastic.”

Moving forward, Sabo says she’d like

the organization to “make sure we have congruency on what our brand is and should be.” Likewise, Flores says Arizona needs to “put its resources where its mouth is” — particularly in education and business opportunities.

“Arizona needs to be ‘top of mind’ for the site selectors and decision makers to consider the great potential of locating projects with quality jobs in Arizona,” says APS’ Bentler. “As the statewide economic development organization, AAED helps bring all of these wonderful partners such as the ACA, GPEC, TREO, community economic development organizations, utilities and many others to help unify and set professional standards to ensure the economic development success in Arizona.”

“I believe that AAED’s commitment to advocacy, education and collaboration and related achievements are equally commendable, but its ability to maintain an overall strong membership base year after year through commitment and reaffirmation of member value is what makes it an organization to emulate,” Casey says.

THOUGHTS FROM PAST PRESIDENTS“AAED has always been for me a networking organization and a resource for state-wide discussion and interaction within economic development. For this reason it has survived and thrived. More recently it has become a respected voice on economic development issues in the political arena.”

— Michael S. Hammond, SIOR, CRE, President/CEO Cushman & Wakefield | PICOR (AAED President 1998)

“This [AZED Pro] designation shows the proactive recognition of a need to do things a little differently in Arizona.”— Marcelino Flores, Pascua Yaqui Council Member

MEMBER SPOTLIGHT

61

Congratulations to AAED on their 40th Anniversary and the

Town of Youngtown on their 60th Anniversary.

Thank you for the contributions that you both have made to the

regional economy.

62 | November-December 2014

AAED

Joyce Grossman became executive director of AAED in 2011. She has a B.A. from the University of California-

Davis and a M.P.A. from California State University-Sacramento. Prior to joining AAED, Grossman was a deputy director with the City of Phoenix and helped attract the International Genomics Consortium/Translational Genomics Research Institute.

WHAT ARE ECONOMIC DEVELOPERS SAYING ABOUT ARIZONA’S ECONOMY?Our growth is uneven, reflecting different economic drivers. As the geography of Arizona is varied, so is the economic climate of the state. While economic forecasters have noted a “softening” in our recovery this past spring, economic developers are reporting they are busy fielding calls and following up on leads. The Phoenix metro area is leading the state’s recovery. Last year, Forbes magazine ranked the metro area No. 1 for financial services employment. Other areas of the state

with a greater dependence on federal funding are recovering more slowly. There are pockets of rural Arizona being proactive by finding ways to use their natural assets to create economic opportunities while others are finding an economic return from the revitalizing of their main streets.

ARIZONA HAS A HANDFUL OF ECONOMIC DEVELOPMENT GROUPS. HOW IS AAED UNIQUE?AAED is the only association in Arizona that provides professional economic development training for practitioners and service providers. We do this through our Economic Development Academy of Arizona, Arizona Basic Economic Development Course (BEDC), and the sponsored International Economic Development Council (IEDC) and Council of Development Finance Agencies (CDFA)courses brought to Arizona. Our academy provides courses on key issues related to the profession in Arizona. Participants who complete eight courses in required modules will receive an Arizona Economic

Development Professionals (AZED Pro) designation. AAED also hosts a four-and-a-half-day Arizona Basic Economic Development Course that is accredited by the IEDC. It is a required course for those seeking a Certified Economic Developer (CEcD). This class, held in January, is open to anyone who wants to learn more about the profession. Finally, AAED partners with the IEDC and the CDFA to bring their advance trainings to Arizona.

WHAT ARE THE MOST INFLUENTIAL BUSINESSES AAED HAS ATTRACTED TO THE STATE?When AAED started in 1974 as the Arizona Association for Industrial Development (AAID), there were only two committees (Spring/Fall Conferences and Business Prospecting). Today, there are 12. AAID, made up of private-public partners, promoted the state of Arizona on prospecting trips. In digging through AAID archives, the association was credited with helping companies locate or expand in Arizona, most notably Motorola, Intel and Honeywell. As economic development departments/agencies came into being, the AAED prospecting missions were replaced by professional education and more stepped up advocacy for economic development tools at the Arizona State Capitol.

AAED'S LUNCHES ARE POPULAR PROGRAMS AND OFTEN SOLD OUT. WHAT IS CONTRIBUTING TO AN INCREASED INTEREST IN ECONOMIC DEVELOPMENT? Timely topics and an invigorating slate of speakers are the reasons! We seek value in the luncheons, with such popular topics as high quality economic/real estate forecasts, future of water, sports, town and gown discussions, workforce development and retail trends. We have sponsors from all aspects of the economic spectrum—private, public, utilities—because we provide a buffet of knowledge and some pretty good meals, too. You never know who will be at your table, possibly a collaborator for a future project.

WHAT IS IMPORTANT DIALOGUE YOU WANT TO SEE HAPPENING GOING INTO 2015?Areas we have focused on in the past and will continue the dialogue into 2015 include infrastructure development and improvement programs and access to capital.

THE POWER OF ATTRACTIONBy AmANDA VeNturA

PHOtO BY SHAVON rOSe, AZ BIG meDIA

Q & A withJoyce Grossman

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