community research and analysis, tn basic economic development course 2013
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Why Do You Need Research
Knowledge = Power• Understand the Local/Regional Economy• Prepare to Work with Prospects• Identify Economic Targets & Opportunities• Basis for All Successful Strategic Plans• Basis for All Effective ED Marketing
What You Need to Know
The Basics• IEDC Standard Data Set http://www.iedconline.org/web-pages/resources-publications/site-selection-data-standards/
• Demographics• Economic Base/ Existing Industry• Workforce Size, Cost & Capabilities• Education & Training
What You Need To Know
Demographics
• Claritas
• ESRI
• US Census• City/County Quick Demographic Overview (Population, Race, Housing, Education Level, Home Values) http://quickfacts.census.gov/gfd/
• County Profiles• Tennessee Advisory Commission on Intergovernmental Relations (TACIR) Most common demographic data, but also has some educational data, vital statistics & state rankings http://www.state.tn.us/tacir/county_profiles.html
• Population Projections• http://www.state.tn.us/tacir/population.html
What You Need To Know
Business & Industrial BaseTarget Industry Analysis
• Private Sources• Harris/ Dunn & Bradstreet• InfoUSA
• US Department of Commerce• County Business Patterns Report• Local Employment Dynamics• Annual Survey of Manufacturers• Building Permits• Many Other Reports http://www.census.gov/econ/www/index.html
• Local Utility Provider
What You Need To Know
Education
• Education Statistics- Tennessee Primary & Secondary Schools Department of Education http://www.tennessee.gov/education/reports_data.shtml
• Higher Education Data & Statistics U.S. Department of Education http://nces.ed.gov/collegenavigator/
• National Education Statistics (Secondary, Post Secondary & Libraries) U.S. Department of Education http://nces.ed.gov/
• Campus Visits & Interviews
What You Need To Know
Workforce- The Number One Cost of Doing Business
• Tennessee Department of Labor and Workforce Development http://www.tn.gov/labor-wfd/lmi.shtml
• U.S. Bureau of Labor Statistics http://www.bls.gov/
• Custom Research
An Excellent Source for Workforce Data
The Source: TN Department of Labor and Workforce Development http://www.state.tn.us/labor-wfd/lmi.htm
Data Available:
• Quarterly Census of Employment and Wages (Distribution of Labor and Annual Average Wages)• Annual Labor Force Estimates Summary• Unemployment Rates• Current Labor Force Estimates• TN Employment Forecast• Wages of Selected Occupations for State and Sub-Regions of the State• Future Trends in Occupations and Industries- Hot Jobs
Quarterly Census of Employment Wages- Annual Average
Industry Avg. # of Reporting Units
Avg. Annual Employment Avg. Annual Wage
Total All Industries 2,324 54,040 $ 33,764
Total All Industries, Federal Government 25 522 $55,286
Total All Industries, State Government 8 953 $34,289
Total All Industries, Local Government 17 8,761 $34,675
Total All Industries, Private Ownership 2,274 43,804 $33,313
Goods Producing 376 13,249 $41,585
Natural Resources and Mining 17 92 $31,290
Crop Production 4 29 $25,574
Quarterly Census of Employment Wages- Annual Average
Industry Avg. # of Reporting Units
Avg. Annual Employment Avg. Annual Wage
Forestry and Logging 6 22 $22,393
Agriculture 3 16 $27,318
Construction 235 3,099 $37,025
Construction of Buildings 81 887 $38,450
Heavy and Civil Engineering Construction
17 519 $46,55
Specialty Trade Contractors 137 1,693 $33,359
Manufacturing 125 10,058 $43,083
Food Manufacturing 8 1,623 $47,163
Wood Product Manufacturing 10 593 $33,180
Paper Manufacturing 7 677 $40,366
And Lots of Other Useful Data
The Source: Tennessee Department of Labor and Workforce Developmenthttp://www.state.tn.us/labor-wfd/lmi.htm
Data Available:• Census Demographic Profiles• Job Search Information• Consumer Price Index- Current• Consumer Price Index- Historical• Per Capita Personal Income Data
Tennessee Metropolitan Statistical Areas with 2013 Definition Updates
Chattanooga, TN-GA (Hamilton, Marion, Sequatchie, Catoosa GA, Dade GA, Walker GA)
Clarksville, TN-KY (Montgomery, Stewart, Christian KY, Trigg KY)
Cleveland, TN (Bradley, Polk)
Jackson, TN (Chester, Crockett, Madison)
Johnson City, TN (Carter, Unicoi, Washington)
Kingsport-Bristol-Bristol (Tri-Cities), TN-VA (Hawkins, Sullivan, Scott VA, Washington VA, Bristol City VA)
Knoxville, TN (Anderson, Blount, Campbell, Grainger, Knox, Loudon, Morgan, Roane, Union)
Memphis, TN-MS-AR (Fayette, Shelby, Tipton, Crittenden AR, Benton MS, DeSoto MS, Marshall MS, Tate MS, Tunica MS)
Morristown, TN (Grainger, Hamblen, Jefferson)
Nashville-Davidson-Murfreesboro, TN (Cannon, Cheatham, Davidson, Dickson, Hickman, Macon, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson, Wilson) RED indicates the county has been removed from the MSAGreen Indicates the county has been added to the MSA
Commute Patterns
Source http://www.census.gov/population/www/socdemo/journey.html
What You Need to Know for Retail and Consumer Driven Development• Average Daily Traffic Counts-TN
• Tennessee Dept. of Transportationhttp://www.tdot.state.tn.us/projectplanning/adt.asp
• Building Permits• U.S. Census Bureau (city or county must report)http://censtats.census.gov/bldg/bldgprmt.shtml
• Retail Sales, Sales Tax Collections by County• Tennessee Department of Revenuehttp://www.tn.gov/revenue/statistics/index.shtml
Retail Sales EstimatedInleakage/Outleakage Report
Rank County2011 Total
Personal Income2011 Total Retail Sales
Sales to Income Ratio
In-Leakage or Out-Leakage*
1 Sevier, TN 2,932,819,000 2,013,717,344 0.687 $ 608,820,415
2 Rutherford, TN 8,714,005,000 5,979,560,363 0.686 $ 1,805,365,620
3 Hamblen, TN 1,894,032,000 1,263,615,633 0.667 $ 357,449,154
4 Putnam, TN 2,288,083,000 1,351,063,918 0.590 $ 278,589,627
5 Madison, TN 3,469,897,000 2,044,495,429 0.589 $ 418,980,278
6 Lewis, TN 295,590,000 170,900,927 0.578 $ 33,136,062
7 Knox, TN 16,994,073,000 8,661,782,921 0.510 $ 1,086,326,038
8 Davidson, TN 30,069,470,000 14,328,356,384 0.477 $ 1,321,505,514
9 Henry, TN 990,912,000 470,865,196 0.475 $ 42,804,144
10 Cumberland, TN 1,691,634,000 802,269,993 0.474 $ 72,187,507
*Based on State of TN Sales to Income Ratio
Retail Sales Potential ReportDemand Supply Opportunity
Retail Stores(Consumer
Expenditures) (Retail Sales) Gap/Surplus
Total Retail Sales 207,362,710 267,338,684 (59,975,974) Motor Vehicle and Parts Dealers 43,586,764 58,174,162 (14,587,398) Automotive Dealers 37,821,101 48,261,332 (10,440,231) Automotive Parts/Accsrs, Tire Stores 3,178,144 8,408,157 (5,230,013) Furniture and Home Furnishings Stores 4,253,052 12,649,840 (8,396,788) Furniture Stores 2,454,059 11,267,556 (8,813,497) Home Furnishing Stores 1,798,994 1,382,284 416,710 Food and Beverage Stores 27,310,670 13,911,063 13,399,607 Grocery Stores 25,176,187 8,045,949 17,130,238 Supermarkets, Grocery Stores 23,989,581 6,914,163 17,075,418 Convenience Stores 1,186,606 1,131,786 54,820
Building Material, Garden Equip Stores 19,062,704 42,893,727 (23,831,023) Building Material and Supply Dealers 17,544,897 37,104,869 (19,559,972) Home Centers 6,872,039 13,869,003 (6,996,964)
General Merchandise Stores 25,992,414 28,460,934 (2,468,520) Dept. Stores (Excl Leased Depts) 12,213,021 632,341 11,580,680 Other General Merchandise Stores 13,779,393 27,828,592 (14,049,199)
Economic Impact Analysis
Why Conduct Economic Impact Analysis
• Understand Workforce Impact- Job Creation Potential
• Determine Appropriate Incentive Level
• Reassure Elected Officials
• Attract Funding
Economic Impact AnalysisAnnual Impact of Operations
Employment, Direct (full-time equivalent) 204
Wages & Benefits, Direct $8,210,125
Employment Multiplier 2.3441
Total Employment 478
Employment, Indirect 274
Angel County Annual Average Wage $41,317
Wages, Indirect $11,328,973
Total Wages $19,539,098
Sales Tax Revenue $ 220,254
Other Tax Revenue $64,094
Residential/Commercial Property Tax Revenue $243,158
Total Tax Revenue $527,506
Economic Impact and Cost/Benefit Analysis
One Time Expansion Impact
Total Capital Investment $14,527,900
Building- Real Property $12,420,300Economic Impact Multiplier 1.5936Economic Impact $19,792,990
Equipment Purchase/Set-Up $2,107,600Economic Impact Multiplier 1.7410Economic Impact $3,669,332
Total Economic Impact $23,462,322Sales Tax Revenue $100,713Other Tax Revenue $29,308Total Tax Revenue $103,021
Tax ScheduleAngel Co Tax Rate:
$2.59 Full Taxes % of Taxes Paid In Lieu
Payment in Lieu Taxes Abated
Real Property $12,420,300
Year 1 $128,674 0% - $128,674
Year 2 $128,674 0% - $128,674
Year 3 $128,674 0% - $128,674
Year 4 $128,674 0% - $128,674
Year 5 $128,674 0% - $128,674Year 6 $128,674 10% $12,867 $115,807
Year 7 $128,674 25% $32,169 $96,506
Year 8 $128,674 50% $64,337 $64,337
Year 9 $128,674 75% $96,506 $32,169
Year 10 $128,674 100% $128,674 $-
Total $1,286,743 $ 334,553
$952,190
Tax ScheduleGood Town
Tax Rate: $0.57 Full Taxes % of Taxes Paid In Lieu
Payment in Lieu Taxes Abated
Real Property $12,420,300
Year 1 $28,318 0% - $28,318
Year 2 $28,318 0% - $28,318
Year 3 $28,318 0% - $28,318
Year 4 $28,318 0% - $28,318
Year 5 $28,318 0% - $28,318
Year 6 $28,318 10% $2,832 $25,486
Year 7 $28,318 25% $7,080 $21,239
Year 8 $28,318 50% $14,159 $14,159
Year 9 $28,318 75% $21,239 $7,080
Year 10 $28,318 100% $28,318 $-
Total $283,183 $73,928 $209,555
Tax ScheduleGood Town Tax
Rate: $0.57 Full Taxes Depreciation% of Taxes Paid
Payment in Lieu Taxes Abated
Mfg Equip/ Personal Property
$2,107,800
Year 1 $3,172 .88 0% - $3,172
Year 2 $2,703 .75 0% - $2,703
Year 3 $2,271 .63 0% - $2,271
Year 4 $1,802 .50 0% - $1,802
Year 5 $1,370 .38 0% - $1,370
Year 6 $901 .25 10% $90 $811
Year 7 $721 .20 25% $180 $541
Year 8 $721 .20 50% $360 $360
Year 9 $721 .20 75% $541 $180
Year 10 $721 .20 100% $721 $-
Total $15,101 $1,892 $13,209
Tax ScheduleAngel Co.
Tax Rate: $2.59 Full Taxes Depreciation % of Taxes Paid
Payment in Lieu Taxes Abated
Mfg Equip/ Personal Property
$2,107,600
Year 1 $14,411 .88 0% - $14,411
Year 2 $12,282 .75 0% - $12,282
Year 3 $10,317 .63 0% - $10,317
Year 4 $8,188 .50 0% - $8,188
Year 5 $6,223 .38 0% - $6,223
Year 6 $4,094 .25 10% $409 $3,685
Year 7 $3,275 .20 25% $819 $2,456
Year 8 $3,275 .20 50% $1,638 $1,638
Year 9 $3.375 .20 75% $2,456 $819
Year 10 $3,275 .20 100% $3,275 $-
Total $68,616 $8,597 $60,018
Economic Impact and Benefit/Cost Analysis
Payback Summary
Length of PILOT 10 years
Total Taxes Forgone $1,234,972
Total Hard Costs $0
Tax Revenues From Construction & Equipment $130,021
Tax Revenues From Operations During PILOT Period $5,275,063
Payments Received in Lieu of Tax $418,670
Total Tax Revenues Received During PILOT Period $5,823,754
Benefit/Cost Ratio 4.72
Consumer Spending
Expenditure Category % of Total ExpendituresWages Earned by New Jobs Created (Direct & Indirect)
Income before Taxes $19,539,098
Annual Taxes & Savings 22% $4,295596
Annual Expenditures $15,243,502
Food/Groceries 7.6% $1,159,864
Restaurants 5.4% $820,668
Housing/Shelter 18.6% $2,840,185
Utilities 8.2% $1,246,496
Housekeeping Supplies/Services 3.6% $545,093
Household Furnishings/Equipment 3.2% $494,800
Apparel 3.9% $595,093
Consumer Spending
Expenditure Category % of Total Expenditures
Wages Earned by New Jobs Created
Transportation 16.2% $2,465,669
Healthcare 6.6% $1,009,592
Entertainment 5.4% $822,001
Personal Care Products/Services 1.3% $197,587
Reading 0.2% $28,322
Education 1.8% $273,223
Tobacco & Alcohol 1.7% $253,897
Charity 3.7 % $563,772
Personal Insurance 11 % $1,670,991
Miscellaneous 1.7% $255,897
Total 100% $15,243,502
Impact of Target IndustriesAnnual Impact of Operations
Distribution Center Headquarters Hospitality
Manufacturing (General) BioScience/Medical
Commercial/Retail
Employment, Direct
100 100 100 100 100 100
Industry Specific Annual Avg. Wage1 $ 42,016 $33,020 $12,948 $42,588 $31,564 $27,352
Benefit Allowance (25%) 10,504 8,255 3,237 10,647 7,891 6,838
Wages & Benefits, Direct $ 5,252,000 $4,127,500 1,618,500 $5,323,500 $3,945,500 $3,945,500
Employment Multiplier 2 1.4078 1.5349 1.2795 2.2318 1.4796 1.2251
Total Employment 140 153 127 223 147 122
Employment, Indirect 40 53 27 123 47 22
Annual Average Wage 3 $30,992 $30,992 $30,992 $30,992 $30,992 $30,992
Benefit Allowance (25%) $ 7,748 $7,748 $7,748 $7,748 $ 7,748 $7,748
Wages, Indirect $1,549,600 $2,053,220 1,045,980 $4,765,020 $1,820,780 $852,280
Total Wages $6,801,600 $6,180,720 2,664,480 10,088,520 $5,766,280 $4,797,780
Consumer SpendingConsumer Expenditures - Annual
Distribution Center Headquarters Hospitality
Manufacturing (General)
BioScience/ Medical
Commercial/ Retail
Transportation (vehicle, gas, maintenance) 20.3%
$1,125,560 $1,022,814 $440,930 $1,669,494 $954,230 $793,959
Healthcare 6.4% $353,870 $321,567 $138,626 $524,880 $300,005 $249,616
Entertainment 4.8% $267,618 $243,188 $104,837 $396,946 $226,882 $188,775
Personal Care Products/Services 1.3% $72,960 $66,300 $28,581 $108,218 $61,854 $51,465
Reading 0.2% $ 13,735 $12,482 $5,381 $20,373 $11,645 $9,689
Education 1.5% $85,809 $77,976 $33,615 $127,277 $72,747 $60,529
Tobacco & Alcohol 1.6% $91,569 $83,210 $35,872 $135,820 $77,631 $64,592
Charity 3.6% $198,498 $180,378 $77,760 $294,423 $168,283 $140,018
Personal Insurance 9.8% $544,983 $495,235 $213,493 $808,350 $462,027 $384,426
Miscellaneous 1.5% $82,117 $74,621 $32,169 $121,800 $69,617 $57,924
Total 100.0%
$5,556,907 $5,049,648 $2,176,880 $8,242,321
$4,711,051
$3,919,786
Headquarters97 Directors Row
Jackson, TN 38305O: 731.668.7367F: 731.668.00421-800-748-2087Memphis Office
2157 Madison Ave
Memphis, TN 38104O: 901-272-5005F: 901-272-5002
www.younger-associates.com
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