san antonio economic development foundation ......origination • 1975: saedf founded and funded by...

San Antonio Economic Development Foundation

QUARTER 2

@SanAntonioEDF

QUARTERLY INVESTORS MEETING

June 12, 2019

The Garage at The Pearl


QUARTER 2

CHAIRMAN’S UPDATE

@SanAntonioEDF June 12th, 2019


NEW INVESTMENT

3

RAD WEAVER STEVE LEE MIKE LYND

2019 PRIORITIES

4

2019 OPERATIONAL HIGHLIGHTS - YTD

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13 38 13

9

$34

2,429

100% TARGET INDUSTRY JOBS

BUSINESS DEVELOPMENT SNAPSHOT - YTD

6

100% of jobs = Target Industry

Jobs Won by Industry International/Domestic Projects Won

BRE / REC Projects Won BRE Assists

Information Technology 31%

Financial Services 24%

Bioscience/Healthcare 19%

Cybersecurity 10%

Headquarters 15%

International 12.5%

Domestic 87.5%

BRE 50% Recruitment 50%

Infrastructure 2

Incentives 8

Workforce 9

Facilities Expansion 13

Business Development/Connections

14

https://app.powerbi.com/reports/f959b171-dd2a-4b32-819a-c25a7a28e94b/ReportSectionc3edb710032c6708faae?pbi_source=PowerPoint

Q3 OUTLOOK

FAMILIARIZATION TOURS

MARKETING TRIPS

7

SKILLS ANALYSIS & REPORTS INVESTMENT GROWTH

REGIONAL PARTNERSHIP WORKFORCE ASSET SNAPSHOT


QUARTER 2

STRATEGIC PLANNING PROCESS UPDATE

@SanAntonioEDF June 12th, 2019


Origination • 1975: SAEDF founded and funded by private sector, 100% business recruitment

Transition • 2008: Mayor commissioned private sector review of economic development delivery system

• 2011: Public-private partnership formed between SAEDF, City and County

• 2015: Forefront SA Strategic Plan for economic development crafted

New SAEDF • 2016: SAEDF leadership transition and Forefront SA validation

• 2017: Forefront SA operationalized with refined target industry and workforce development focus

• 2018: FTA integration and increased focus on Global Development

• 2019: Deploy regional program and initiate recalibrated strategic planning process

EVOLUTION OF SAEDF

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CONSISTENT SAEDF CHARTER

MISSION Lead the development and diversification of the San Antonio

regional economy through the location and expansion of

quality employers and job producing investments.

VISION Propel San Antonio’s economy to the forefront of

today’s top performing cities.

HISTORY Founded over 40 years ago, SAEDF is San Antonio’s lead

economic development entity charged with continued

development and diversification of the San Antonio

regional economy.

Visitor Experience

(Visit SA)

Livability &

Quality of Place

(Tech Bloc)

Business

Advocacy

(Chambers of

Commerce)

QUALITY

JOBS

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FOREFRONT SA: Current Strategic Framework

Global

Development

Business Retention

& Expansion

Business Attraction

Entrepreneurial Development

WORKFORCE DEVELOPMENT

Bioscience Advanced

Manufacturing

Energy IT / Cyber

Security Headquarters Financial

Services Military

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PERFORMANCE YTD

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Indicator 2019 YTD 2019 Goals 2017 - 2019 (YTD) Target 2020 Goals (2017 - 2020)T1 New Jobs 2,389 5,230 12,349 20,000T1 New Target Industry Jobs % 100% 55% 53% 50%T1 New High Wage Jobs % 41% 50% 43% 55%T1 Local CAPEX $27M $400M $624M $1.5BT1 Foreign Direct Investment 0 $66.5M $61.5M $200MT1 Target Sector Employment Growth (NAICS) 3% 3% 3% 12%T1 BRE Assists 48 120 184 350T1 Number of Direct Export Supported Jobs* N/A 35,000 N/A 37,200T1 Job Fill Ratio 0.52 0.72 0.60 0.75T1 Educational Attainment* 33.0% 33.4% 33.3% 33.5%T1 Post-Secondary Completions (Target Sector-all)* N/A 5,000 7,437 29,000T1 Work-based Learning Opportunities 3,608 5,300 12,887 20,000T1 Brand Brand Awareness and Favorability** N/A Awareness 72%Favorability 61% Awareness 67%Favorability 56% Awareness 78%Favorability 66%T1 Budget Compliance (501c6 | 501c3) $1.07M | $227K $3.3M | $890K N/A N/AT1 Employee Engagement N/A 75% N/A 80%T1 Total Revenue Growth (501c6 | 501c3) $172.9K | $30K $500K | $133K $1.019M | $337.5K $2M | $500KT1 Private / Public Funding (501c6) 45/55 50/50 45/55 60/40 T1 Private / Public Funding (501c3) 76/23 50/50 76/24 60/40*Indicates previous year's data (back data) **Based on 2015 study Last Updated 05/28/2019

WorkforceAdmin Serv. Investor & Comm. RelationsBusiness DevelopmentTier

Indicator 2019 YTD 2019 Goals 2017 - 2019 (YTD)Target 2020 Goals

(2017 - 2020)

T1 New Jobs 2,389 5,230 12,349 20,000

T1 New Target Industry Jobs % 100% 55% 53% 50%

T1 New High Wage Jobs % 41% 50% 43% 55%

T1 Local CAPEX $27M $400M $624M $1.5B

T1 Foreign Direct Investment 0 $66.5M $61.5M $200M

T1Target Sector Employment Growth

(NAICS)3% 3% 3% 12%

T1 BRE Assists 48 120 184 350

T1Number of Direct Export Supported

Jobs*N/A 35,000 N/A 37,200

T1 Job Fill Ratio 0.48 0.72 0.59 0.75

T1 Educational Attainment* 33.0% 33.4% 33.3% 33.5%

T1Post-Secondary Completions

(Target Sector-all)*N/A 5,000 7,437 29,000

T1 Work-based Learning Opportunities 3,608 5,300 12,887 20,000

T1

Bra

nd

Brand Awareness and Favorability** N/AAwareness 72%

Favorability 61%

Awareness 67%

Favorability 56%

Awareness 78%

Favorability 66%

T1Budget Compliance

(501c6 | 501c3)$1.07M | $227K $3.3M | $890K N/A N/A

T1 Employee Engagement N/A 75% N/A 80%

T1Total Revenue Growth

(501c6 | 501c3)$172.9K | $30K $500K | $133K $1.019M | $337.5K $2M | $500K

T1 Private / Public Funding (501c6) 45/55 50/50 45/55 60/40

T1 Private / Public Funding (501c3) 76/23 50/50 76/24 60/40

*Indicates previous year's data (back data)

**Based on 2015 study

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STRATEGIC PLANNING PROCESS

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Expected Outcome: Three - five year regional economic development

strategy and an implementation plan set to launch in 2020.

Experience: • 165+ clients in 34 states and abroad

• Holistic approach to economic and workforce development

• Recently served Austin and Nashville

Phased Approach: • Dedicated top resources

• Two-way dialogue in learning phase

• Implementation plan we can act on

https://www.marketstreetservices.com/

14 © MARKET STREET SERVICES

Regional Economic Development Strategy San Antonio, Texas

QUARTERLY BRIEFING

JUNE 12, 2019


Current Realities in Economic Development


Area Development Survey of Corporate Executives Most Important Site Selection Factors (top 10 out of 28 factors evaluated)

2006 2018

Change in

Ranking

(2006 - 2018)

1. Labor costs 1. Availability of skilled labor 6

2. Highway accessibility 2. Labor costs 1

3. Corporate tax rate 3. Highway accessibility 1

4. State and local incentives 4. Corporate tax rate 1

5. Tax exemptions 5. Tax exemptions --

6. Occupancy or construction costs 6. Quality of life N/A

7. Availability of skilled labor 7. State and local incentives 3

8. Energy availabilty and costs 8. Energy availability and costs --

9. Cost of land 9. Available buildings N/A

10. Low union profile 10. Occupancy or construction costs 4


Workforce Sustainability Current Realities

Demographic Constraints:

• The retirement of Baby Boomers accelerates

• We have barely enough young people to replace impending retirees

• As a nation, we are reliant on high levels of international immigration

Meanwhile:

• Unemployment is at its lowest point in half a century

• Occupations and their skill requirements are changing rapidly

• Robotics and AI are changing occupations and their skill requirements rapidly

The Result:

• Workforce shortages

• Skills gaps

• Competition for talent is the competition for jobs


Residential Location Preferences by Generation, United States (2015)

Source: Urban Land Institute (ULI)

Baby Boomers

(ages 50-68)

Millennials

(ages 18-36)

Desired Residential Location (% who would like to live in a certain community type)

Rural areas and/or small towns 51% 32%

Suburbs 24% 29%

Cities 22% 37%

Priorities When Choosing a Place to Live (% top or high priority)

Convenient public transit 29% 39%

Walkability 50% 54%

Space between neighbors 57% 50%

Preferences for Specific Community Attributes (% agree)

Prefer to live in a place where they do not need to use a car often 49% 63%

Prefer to live in a diverse comm. w/ a mix of cultures and backgrounds 61% 76%


Where Talent Chooses to Live City vs. Suburb Population Growth (2010-2017)


1.7%

3.2%

2.0% 2.2%

1.9%

2.4%

3.0%

2.1% 2.2% 2.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Houston-TheWoodlands-Sugar Land,

TX

Austin-Round Rock, TX Dallas-Fort Worth-Arlington, TX

Raleigh, NC San Antonio-NewBraunfels, TX

Primary City Growth Suburb Growth

Where Talent Chooses to Live City vs. Suburb Population Growth (2017-2018)


Place: What Makes a Community “Sticky”?

1. Social offerings

• Entertainment venues and places to meet

2. Aesthetics

• Physical beauty and green spaces

3. Openness

• Open networks and accessible quality of life options for all

Source: John S. and James L. Knight Foundation’s Soul of the Community Project


“In your opinion, what is the community’s greatest weakness or challenge to overcome as a place to

live, work, visit, and do business?”

Austin, Texas




Macon, Georgia




Cheyenne, Wyoming


The Response: Intentional Planning and Implementation

Austin: – Mobility agenda: advocacy, Opportunity Studio, “Austin Moves” Mobility Challenge

– Affordability agenda: CodeNEXT, Affordability Progress Reports, Employer-Assisted Housing

– Recommitting to existing business retention and new workforce programming (DTW30)

Macon: – New Business Education Partnership

– Leader in Me throughout all elementary schools

Cheyenne: – Downtown revitalization: LCCC Expansion, West Edge Plan, C2E2

– Activating the Cheyenne Greenway


Market Street Services Our Approach, Our Experience, and Our People


Market Street Services

– Founded in 1997 to support communities interested in holistic community, economic, and

workforce development.

– Located in Atlanta, Georgia, Market Street maintains a staff of professionals that excel in

quantitative analysis, facilitation, and helping communities create actionable strategies for

positive change.

– Our commitment is to a definition of economic development and community improvement that,

at its core, is about personal wealth creation for all citizens and building better

communities.


Key Principles

– Rather than prescribing quick fixes, our goal is systemic change.

– Rather than producing boilerplate studies where only the client’s name changes, our goal is producing deliverables specific to each client’s situation.

– Our reports are in plain English.

– We tell the truth.

– Rather than faceless consultants that make two presentations and disappear, our goal is developing a relationship as partners.


Market Street Services: Our Clients


Project Overview Regional Economic Development Strategy


Project Overview

PHASES 4 & 5: STRATEGIC PLANNING & IMPLEMENTATION GUIDANCE

Regional Economic Development Strategy Implementation Plan

PHASES 2 & 3: RESEARCH & EVALUATION

Regional Assessment & Competitive Scorecards

Target Sector Assessment

PHASE 1: REGIONAL ENGAGEMENT & STAKEHOLDER INPUT

Stakeholder Interviews Focus Groups Regional Survey


Project Timeline

June – July Project Kickoff & Stakeholder Input

August Regional Assessment & Competitive Scorecards

September Target Sector Assessment

October Regional Economic Development Strategy (draft)

November Regional Economic Development Strategy (revised)

December Implementation Plan (draft)

January Implementation Plan (revised)


Share Your Input! Help Us Promote the Survey!

www.surveymonkey.com/r/SanAntonioRegion

• 5-15 minutes to complete depending on respondent

• Share with friends, family, colleagues via email and social media

http://www.surveymonkey.com/r/SanAntonioRegion


Questions?


The Way Forward

“The key is not the age of the institution but its creativity and its persistence. A single

game changer, no matter how transformative or creative, does not an economy

reshape. Sustaining the gain means engaging in a continuous process of inquiry and

investigation, reinvention and renewal, in which one gain leads to another, and then

another, and then another. Successful metros, in other words, never stop. They do

not rest on their laurels, they build on their successes.”

Bruce Katz and Jennifer Bradley

The Metropolitan Revolution


Confront the Brutal Facts

“‘If it ain’t broke, don’t fix it’ is the slogan of the complacent, the arrogant, or the scared.

It’s an excuse for inaction, a call to non-arms. It’s a mindset that assumes (or hopes)

that today’s realities will continue tomorrow in a tidy, linear, and predictable fashion.

Pure fantasy.”

Colin Powell, Former Secretary of State

excerpt from Leadership


J. Mac Holladay Founder and CEO

Market Street Services

[email protected]

404.880.7244

mailto:[email protected]

SAN ANTONIO’S EXPERTISE IS IN

COLLABORATION AND WE NEED PARTNERS FROM ACROSS

THE PUBLIC AND PRIVATE SECTORS

TO DR IVE PROGRESS .

WE ARE A REAL CITY, READY FOR SUCCESS! 38

san antonio economic development foundation ......origination • 1975: saedf founded and funded by...

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