HomeMy WebLinkAbout2010-01-13 Economic Development Policy Group_MIN
ECONOMIC DEVELOPMENT POLICY GROUP
January 13, 2010
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MINUTES FOR THE
ECONOMIC DEVELOPMENT POLICY GROUP
January 13, 2010
51 Winburn Way
CALL TO ORDER
Russ Silbiger called the meeting to order at 3:00 p.m. in the Siskiyou Room, 51 Winburn Way.
Policy Group Members Present:Staff Present:
Russ Silbiger
Tom Bradley Adam Hanks, Project Manager
John Stromberg Pam Hammond Martha Bennett, City Administrator
Mark Marchetti Annie Hoy April Lucas, Admin. Assistant
Dean Cropper Emile Amarotico
Jim Klein
Absent Members:TAC Members Present:
Wendy Siporen Laurie GibbsSandra Slattery
Ric Holt DeeAnn Everson Bill Molnar
John Fields Jim Teece
PRESENTATION OF DRAFT UPDATE TO 2007 EOA/IMPLEMENTATION PLAN.
Project Manager Adam Hanks introduced Eric Hovee to the group. He explained Mr. Hovee
conducted a review and prepared a report on the City’s Economic Opportunities Analysis, and is
here today to provide a presentation on his findings.
Mr. Hovee addressed the group and provided a presentation that identified highlights from his
report.(See attached PowerPoint Presentation)
PRESENTATION Q & A
Bill Molnar asked if the success in specialty niches has been seen in both technology and
manufacturing. Mr. Hovee clarified this is occurring in both manufacturing and technology
companies, but specifically in manufacturing companies that are increasing their international
market.
Dean Cropper asked if Mr. Hovee could list specific market niches for Ashland. Mr. Hovee
stated in Southern Oregon (though probably not Ashland) there is a role for forest products
manufacturing, and suggested Ashland consider smaller companies (information categories) that
value Ashland. Mr. Cropper asked about the possibility of government expansion and noted the
U.S. Fish and Wildlife Forensics Lab in Ashland. Mr. Hovee stated this is outside the realm of
traditional economic development, but could be a strategy worth pursuing.
Martha Bennett asked if the City can have any influence over clusters, or if this is just random
occurrence. Mr. Hovee stated the City can provide intentional pieces that help strengthen the
cluster, and cited access to international air routes as an example.
Russ Silbiger asked for Mr. Hovee’s advice on how active the local government should be in
developing the long-term economic development strategy. Mr. Hovee stated there is not a one-
ECONOMIC DEVELOPMENT POLICY GROUP
January 13, 2010
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size fits all answer, and stated the best opportunities seem to materialize when there is a strong
private-public role. He stated you need to have both elements, however it is up to Ashland to
find the right balance. He added flexibility in the long-term strategy is key, and stated they may
need to come back periodically and review it. He also noted the importance of clear, strongly
articulated policies in the strategy.
In regards to the specialty manufacturing niche, Adam Hanks asked what scale would be
appropriate for Ashland. Mr. Hovee stated in communities of this size, they tend to be smaller
companies. He cited Hood River as an example and stated most of their manufacturing
companies have 5-40 employees.
Sandra Slattery shared her experience with companies locating to Ashland, and stated influential
factors have included the Oregon tax credits, access to a qualified labor force, access to an
airport, access to local supplies, and quality of life.
Mayor Stromberg commented that there are essentially three population groups in Ashland:
people who live here, people who work here, and people who are very tied to this community
and have been visiting for decades. He noted the importance of the last group and stated they are
a big resource that the City needs to engage. Mr. Hovee commented that Ashland needs to
identify what part of this population they want to capture, and for what purpose.
Dean Cropper asked if the goal is to stabilize Ashland’s economy, grow it, develop it, or bring
new businesses in. Martha Bennett thanked Mr. Cropper for his question and stated this is
exactly what this group is being asked to define.
Adam Hanks submitted a questionnaire to the group and reviewed the content. He stated the
intent is for each member to go through the trends, strengths and weaknesses indentified and add
anything they think might be missing. The questionnaire also asks them to identify opportunities,
threats, and a vision for the City of Ashland.
The group was asked to submit their feedback to staff before Friday, January 22, 2010.
ADJOURNMENT
Meeting adjourned at 4:30 p.m.
Respectfully submitted,
April Lucas, Administrative Assistant
CITY OF ASHLAND
CITY OF ASHLAND
ECONOMIC
ECONOMIC
OPPORTUNITIES
OPPORTUNITIES
ANALYSIS
ANALYSIS
REVIEW & UPDATE
REVIEW & UPDATE
Presentation Outline
Presentation Outline
January 13, 2010
January 13, 2010
E. D. Hovee & Company, LLC Economic and Development Consulting
Introduction to EOA Review & Update
Introduction to EOA Review & Update
Background:
¤Economic Opportunities Analysis (April 2007)
¤Recommended Vision to Develop & Implement
a Community Economic Vision (June 2007)
¤Ashland City Council Economic Development Strategy
Process Authorization (July 2009)
Approach:
¤Data update assessment
¤Global to local economic change
¤Preliminary implementation plan & review
¤Framework for community based SWOT
E. D. Hovee & Company, LLC Economic and Development Consulting Page 1
EOA Data Update Assessment
EOA Data Update Assessment
Reasons for Data Updating:
¤2007 EOA now dated
Recommended Approach
(based on 2000/04 data sets)(Option 3 –As Needed)
Determine initial needs
¤Considerable recent
with this review
growth & change
ID high priority items
¤Effects of recession
(e.g. core indicators)
Allocate resources
Options for Data Update:
Complete EOA update
1 Î Update all data sets now
post-2010 Census
(likely 2012-13)
2 Î Wait for 2010 Census data
3 Î Update as needed for
economic development strategy
E. D. Hovee & Company, LLC Economic and Development Consulting Page 2
Global to Local Economic Change
Global to Local Economic Change
Patterns of Economic Change:
A.With Economic Downturn
(& Early Phase Recovery)
Scale of Change
Financial market retrenchment
Global
Jobless recovery?
Stalled development
B.Post-Economic Recovery
(over 10-20 Years)
National
Financial restructuring
Changing competitive advantage
Emerging economic
State & Regional
& demographic drivers
Environmental
& infrastructure drivers
Changing development paradigm
E. D. Hovee & Company, LLC Economic and Development Consulting Page 3
Added Focus #1
Added Focus #1
Changing Face of American Employment
Changing Face of American Employment
The Trend:
¤Past decade slow in growth
U.S. Non-Farm Employment Growth Rates
(despite mid-decade surge)
(1980-2035)
2.5%
¤Decline of manufacturing?
¤Strong construction growth
2.0%
plusprofessional services,
education & health care
1.5%
The Forecast:
1.0%
¤Job recovery followed by
slackening growth
0.5%
(with maturing labor force)
¤Modest industrial gains
0.0%
1980-851985-901990-951995-002000-052005-102010-152015-202020-252025-302030-35
(non-manufacturing)
Source: Global Insight.
¤Strong professional services,
education & health
E. D. Hovee & Company, LLC Economic and Development Consulting Page 4
Added Focus #1
Added Focus #1
Oregon Perspective
Oregon Perspective
Notable Trends:
¤Early 1980s: Oregon harder
Employment Growth Rates –U.S., Oregon
hit than U.S.
& Portland PMSA (1980-2005)
5.0%
¤1985-2000: Oregon
4.0%
outpaces the nation
3.0%
¤2000-05: Slow down,
especially Portland metro
2.0%
Questions for the Future:
1.0%
¤Job rebound vs. long-term
0.0%
1980-851985-901990-951995-002000-05
slowed growth?
-1.0%
USOregonPMSA
¤Jobs to major metro areas
Source: Metro, OED.
vs. rest of state?
E. D. Hovee & Company, LLC Economic and Development Consulting Page 5
Added Focus #2
Added Focus #2
Aging Demographics
Aging Demographics
Trend & Forecast:
¤Persons 55+ represent majority
Changing Age Composition of Portland
of household growth thru at
Metro Household Growth (to 2025)
30%
least 2025 (from <25% pre-
2010-15
2015-20
2000 to 60%+ post-2005)
2020-25
25%
¤Post-2015, the action shifts
20%
to 65-74 age cohort, then 75+
15%
Economic Implications:
10%
¤Housing demand
5%
fordownsizers
0%
¤Reduced purchasing power?
15-2425-3435-4445-5455-6465-7475-8485+
Age Cohorts in Years
¤Labor force shrinkage?
Source: Metro.
¤Ramped up health care demand
E. D. Hovee & Company, LLC Economic and Development Consulting Page 6
Economic Development Implications
Economic Development Implications
…from Global, National, State & Regional Economic Change:
¤Economic recoveryshould not be construed
as a return to Ð business as usual Ñ
¤A key question is whether to couple with
or avoid global pathwayopportunities
¤Continued transition to service sectoremployment
plays well to Ashland strengths Î cultural entertainment,
tourism, education, health care
¤Aging demographicsoffer both
benefits & risks Î for high amenity communities
¤Yet unanswered: will impetus for urbanization & reduced
carbon footprintto benefit of smaller metro areas?
¤Consider contingent outcomesone-by-one
for commercial & industrial development
E. D. Hovee & Company, LLC Economic and Development Consulting Page 7
Preliminary Implementation Plan Review
Preliminary Implementation Plan Review
From Strategy to Implementation:
¤Business clustering Î
Comparable
distinctive opportunity for
Communities
competitive advantage
Bend–economic &
tourism development
¤Emphasis on sustainability Î
Corvallis–a community
in green design, business
based approach
marketing & practices
Kirkland-economic
development with
¤Transition to increasing focus
sustainability
on infill & redevelopment Î
from within rather than outside
E. D. Hovee & Company, LLC Economic and Development Consulting Page 8
Framework for Community Based SWOT
Framework for Community Based SWOT
Options for Action
SWOT Scoping:
¤Defining Ð economic
Identify strategic
development Ñ(how expansive?)options & implications
(pluses / minuses)
SWOT Participants/Mechanisms:
Select a preferred
¤Plan review
option followed by
¤Interviews / focus groups
goal-setting &
implementation plan
¤Brainstorming
¤Community involvement
Option Examples
¤Hybrid approach
Status quo
Frame the SWOTto involve those
Business recruitment &
expansion focus
who want or need to have a voice –
whether in strategy, review,
Broad economic &
or implementation
community initiative
E. D. Hovee & Company, LLC Economic and Development Consulting Page 9
Summary Notes
Summary Notes
Ashland Strategy Economic
Steps to Strategic Plan:
Development Process
Economic Development StrategyRelated Activity
¤Proceed w/2007 EOA &
Comp Plan Update
EOA Review & Update
Technical Documents
Top trends Data & update Definition
CromanMaster Plan
2007 EOA
SWOT scope & participants
Croman Master Plan
parallel toeconomic
Conduct SWOTEOA Data Update
development strategic plan
Stakeholder participation Selective as needed
SWOT findings Strategy focus
Options for action
¤Use reviewof global to
TAC / Policy Group Review
local to define economic
Preferred strategic option
Brainstorm vision, goals, implementation
development for Ashland,
ID data update needs & set
Draft Economic Development Strategy
SWOT Vision Goals
SWOT scope/participants
Implementation
Updated Comp
Plan Adoption
¤Includestrategic options as
Draft Strategy Review
TAC / Policy Group Community interests
a key step between the
City Council
SWOT & strategy /
Strategy Adoption
implementation plan
Final strategy Council adoption
First year work program
E. D. Hovee & Company, LLC Economic and Development Consulting Page 10
Your Turn:
Your Turn:
Questions?
Questions?
Comments/Suggestions
Comments/Suggestions
Thank You
Thank You
E. D. Hovee & Company, LLC Economic and Development Consulting