City of Sierra Vista

ED Update Q2 2015

City of Sierra Vista

ED Update Q2 2015

1. New Business

Currently, there are a number of commercial and industrial projects in Sierra Vista. Below are a few.

1) Canyon Vista Hospital, a 100-bed, level 3 hospital opened in second quarter this year.

2) Native Grill and Wings located on Highway 92, South of MLK is almost complete and will be

opening on July 20.

3) Culvers opened Easter weekend and is doing well.

4) Compound Pharmacy located on E. Fry Blvd is just about complete.

5) Mattress Firm broke ground on April on their new showroom in front of Target along Highway

92.

6) The FedEx 26,975-square-foot distribution facility is near completion on the south side on

Industry Drive

7) Arizona Auto Spa, a full-service car wash submitted building plans in May.

8) The Salvation Army has submitted plans for a new 10,200-square-foot community outreach

center

9) Southwest Gas has a new 12,000-square-foot office building and warehouse under site plan

review across from FedEX.

10) Confident Brewers had an opening in early July and is located on Fry Boulevard.

11) Fry’s Food and Drug has just completed a store remodel.

2. Fort Huachuca As sequestration continues, The City is relieved that the Army has announced that only 114 jobs will be cut during the next two years. This is much smaller than the 2,700 jobs that could have been reduced. http://www.sierravistaazbusiness.com/2015/07/10/army-cuts-will-affect-fort-huachuca-jobs-in-arizona/ However, we are still taking a proactive approach toward future cuts and a potential BRAC. The City along with Cochise County and the Fort Huachuca 50, a non-profit that supports on-going efforts at the Fort, are banding together to hire a federal lobbyist. Final interviews are scheduled for early August. The consultant will be tasked with be promoting the Fort and its missions to elected officials and their staffers along with top Army and military decision makers in the Pentagon. Likewise, the City will be working on developing a visiting VIP program for decision influencers to visit the Fort in the upcoming months.

3. Sierra Vista housing Sale, Housing Permits While housing permits are still slow, we are seeing a market increase in home sales. http://www.sierravistaazbusiness.com/2015/07/13/june-home-sales-increase-over-2014/ Last year’s numbers reflect the Crossing Point Development, an affordable housing project.

Residential SFR’s 2015 2014 Total for 2014

June 8 33

Year-to-Date 39 73* 110*

*Reflects the Crossing Point Development

New Commercial 2015 2014 Total for 2014

June 0 1

Year-to-Date 2 5 9

4. Retail Sales and Tourism

Likewise, there has been a slight increase in retail sales. See the article below.

www.sierravistaazbusiness.com/2015/07/13/retail-continues-strong-growth-hospitality-mixed/

Additionally, the City has seen an increase in tourism. Some of this can be accounted for by the

development of the hospital but it seems as though the City’s proactive marketing efforts are

beginning to see results.

According to Dean Runyan Associates’ 2014 Cochise County Data, total travel spending (i.e.,

spending by tourists/travelers) in Cochise County increased by 22.7%, more than any other

Arizona county and the state as a whole. At $421 million, Cochise County’s annual travel

spending is the highest reported in the data, which reaches back to 1998. Cochise County also

took the state lead in percent change in travel generated earnings, up 10.4% over 2013, taking

in $85 million. The next highest gain was by Maricopa County at 6.9%.

Commodity spending by visitors increased in every category in Cochise County, totaling $389.1

million. Accommodations totaled $56.1 million (56.3% increase); food service totaled $101.2

million (24.3% increase); food stores totaled $68.5 million (14.4% increase); local transportation

and gas totaled $57.4 million (12.3% increase); arts, entertainment and recreation totaled $24

million (23% increase); retail sales totaled $81.9 million (29% increase).

Travel-related spending by commodity.

5. Other Good News

There are many good things happening in Sierra Vista to place the city in position for economic

growth. The City is becoming proactive about its own economic development activities. They

have hired a new economic development manager who has been on the team since February.

Council has set economic development as a priority and in May they received an economic

strategy that will lead the efforts during the next two years. With the approval of the FY16/17

budget, Council has approved funding that will allow for the addition of a management analyst

that will supplement the ED Division’s efforts focusing on retention and entrepreneurism and

freeing up the manager to work on attraction efforts along with larger initiatives.

Additionally, the city is just completing a branding effort. This has been a nine month process

that has included surveying residents, businesses and those outside the city about their

impressions of the city. The branding will cumulate with presentation of a new logo, strapline

and look and feel to be used in marketing and advertising at the City's annual Spotlight

Breakfast August 11.

Additional news items and initiatives are listed below.

a. In April, 2015, RegionalCare Hospital Partners opened its new, $100 million, 175,000 square-

foot, 100-bed hospital in Sierra Vista. Replacing the Sierra Vista Regional Health Center, this

new hospital is a level 3 Trauma Center. The teaching hospital not only serves people from

Douglas, Benson, Tombstone, Bisbee and residents in the county, which means patients

don’t have to travel 75 miles to Tucson for top-quality trauma care. The hospital is

improving and expanding their equipment and ability to service patients in pediatrics and

maternity along with stroke victims other medical specialty areas. They have are in the

process of recruiting additional nurses and doctors. Some of the nurses have come from

Cochise College’s school of nursing

Commodity Visitor Spending (in millions)

% Change (YoY)

Accommodations $56.1 56.1

Food Service $101.2 24.3

Food Stores $68.5 14.4

Transportation $24.0 23

Retail Sales $81.9 29

RegionalCare Hospital Partners has committed more than $100 million to improving

healthcare infrastructure for Sierra Vista and Fort Huachuca.

The old hospital has been donated to Cochise College who will move their nursing program

into the building along with bringing together local business assistance programs such as the

Small Business Development Center and Arizona Workforce Connection.

b. Mexican travel and tourism-Sierra Vista benefits from our close location to Mexico. The City

is hoping to identify funding and conduct a study this year to define the exact impact. With

the opening of the hospital, the number is expected to increase as Mexican nationals take

advantage of the improved healthcare opportunities. Additionally, the city has partnered

with regional entities to create and implement a strategy that will ease the process to

obtain a travel visas in Auga Prieta. This town shares the border with Douglas and visitors

from this area regularly shop in Sierra Vista.

c. In May, the city attended the International Council of Shopping Centers (ICSC) conference in

which more than 34,000 national chains, developers and site selectors attend. Marketing

materials were handed out and staff is currently following up with leads for new restaurants

and stores.

d. To assist the businesses currently located within Sierra Vista, the Economic Development

Division is partnering with local and regional agencies to develop a Pathway to Success for

those businesses wanting to expand. Two grants applications that would assist with funding

the Pathway have been submitted.

e. This year, the City will conduct a study regarding the development of a Cyber Security

industry cluster. An adhoc committee of experts in the field has been formed to assist with

the creation of a strategy that will allow us to leverage the current efforts at Fort Huachuca

and workforce expertise already in the area.