Fort Collins Board of Realtors

February 11, 2010

Michael MasciolaCOO & Senior Vice President

The NCEDC

• Non-Profit 501 C (6) • Serving Entire Larimer County (9 Jurisdictions)• Primary Employer Focus

– Business Attraction– Business Retention & Expansion (BR&E)– Local ED Initiatives– No Secondary or Retail Work

• Client Services are Free & Confidential– Supported by NCEDC Investors and Strategic

Partners

50% of the Goods and Services from Primary Employers are sold outside our region.

$$$$Resulting in new dollars coming into our region.

Primary Employers

Primary Employers

NCEDC Represents Larimer County In Attracting & Retaining Primary Jobs

UTILITIESUtilities

Natural GasWater

ElectricityWaste Water

Other Regional Utilities

CHAMBERS OF COMMERCE

LOCAL INDUSTRYPeers

SuppliersVendors

OTHER ORGANIZATIONSReal Estate Brokers,

Developers, Arts& Culture Organizations

GOVERNMENTS

City of Fort Collins

City of Loveland

Town of Timnath

State of Colorado

County Economic Development

EDUCATION

CSU

Front Range Community College

Other Local Colleges

Public Schools

TELECOMMUNICATIONS

Long distance carriers

No. Colorado EDC:Initial

CommunityContact

New Business Prospect

or Expanding Firm

ConfidentialCommunication

TheNorthern Colorado

Economic DevelopmentCorporation

coordinates membersof our economic

development team.

NCEDC Primary Employer Services

• Community Tours/Briefings• P2P Company Interviews

• Incentive Negotiation (Federal, State & Local)

• Direct Competition Data

• Financing Options

• Workforce Recruitment and Training

• Competitive City Analysis

• Quality of Life Information

• Assistance with Company Announcement’s

• Assistance with Employee Relocation

• Confidential Location Assistance

• Strategic Partner Support Coordination

• Real Estate Search

• Business Operations Costs – Specific to Site

• Workforce Analysis

• Regional Economic Trends

• Access to K-12 and Higher Education

• Vendor/Supply Chain Support

• Transportation Information

• Liaison for Government Approvals

Business Attraction

Real World Example

Enterprise Claim Center, Fort Collins140 Jobs, 25,000 Square Feet

NCEDCAssistance

toEnterprise

Rent–A-Car

Workforce AssistanceWage comparisonsWorkforce mobility statsLCWC database profileSOS Staffing database profileOpen house logisticsInterview space logisticsApplicant screeningJob fair coordinationEmployee transfereesCC & training coordination

P2P Company Interviews

Kroll Factual DataCenter PartnersWal-Mart

IncentivesEIA & FIAColorado FirstJob PIFEnterprise ZoneUse Tax Savings PPT Abatement

Real EstateNCEDC site solicitationExisting space options – 10No CO Business Parks mappingHousing costs and optionsHousing agents referral

Business ClimateComparative tax structuresComparative cost of living Comparative crime stats Harmony Road development history

Community Education

Demographics & economic indicators3 community tours

CompetitionListing of existing back office centers (wages # of employees)NCEDC pipeline profile

TransportationHarmony Corridor PlanTransfort, Foxtrot & Colt routes & schedule

Post Care•Announcement Press Release•Announcement Press Conference•Ongoing PR•Employee transferees•LCWC coordination•Lodging•Community integration•BR&E hand over

Timeline7-2007 – 1st NCEDC contact – Considering 17 markets2-2009 - Announcement in FC21 Month Process

The Local Job Market Today

Population Growth Continues

Source: Dr. John Green, UNC

Employment Growth, however, has been Declining since 2000

Source: Dr. John Green, UNC

Annual Growth in NonFarm Employment in Larimer County, 1991 to 2009

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

Year & Quarter

Jo

b G

row

th

Annual Growth Poly. (Annual Growth)

Unemployment has been Increasing since 2000

Source: Dr. John Green, UNC

Unemployment Rate in Larimer County, 2000 to 2009

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Year & Quarter

Pe

rce

nt

Un

em

plo

ye

d

Unemployment Rate Linear (Unemployment Rate)

Larimer County Net Job Losses

Source: BLS, Dr. Martin Shields, Colorado State University

Larimer County has Lost about 4,000 Jobs over the Past 12 Months

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

D-06

F-07

A-07

J-07

A-07

O-07

D-07

F-08

A-08

J-08

A-08

O-08

D-08

F-09

A-09

J-09

A-09

O-09

D-09

Source: CSU/CDLE

Larimer County Lost Jobs (Dec 08 to Dec 09) 4,000

Primary Jobs 2,000Average Salary $55,000Total Primary Income Loss $110,000,000

Secondary Jobs 2,000Average Salary $36,300Total Secondary Income Loss $72,600,000

Total Annual Income Loss To Economy $182,600,000

2 ½ Year Income Loss $457 Million

Larimer County Income Loss

But There is Good News……

2004-2010 YTD NCEDC ANNOUNCEMENTS

4

5

2

6

8

6

2

0

1

2

3

4

5

6

7

8

9

2004 2005 2006 2007 2008 2009 2010 YTD

2004-2010 YTD JOB ANNOUNCEMENTS

580

700

300

506

1077

504

60

0

200

400

600

800

1000

1200

2004 2005 2006 2007 2008 2009 2010 YTD

Damage Recovery Unit

NCEDC 2009 Announcements

2009 Total NCEDC Announcements

• 6 Company/Division Announcements

• 504 New Primary Jobs, 347 Secondary

• Average Salary $61,434, 55% above Larimer County Average Wage

• $31 Million in Annual Payroll

• 168,000 Square Feet Occupied

• $27.8 Million in Private Investment

Source: Colorado Department of Labor 1st Qtr. 2009, NCEDC

2003-2010 National RelocationsOffice & Industrial Projects > 20,000 sq. ft & >25 employees

5667 56986217

4732 48564442

2073

0

1000

2000

3000

4000

5000

6000

7000

2003 2004 2005 2006 2007 2008 2009

Source: Angelous Economics, 2010

53%Decrease

2003-2010 NEW ATTRACTION LEADS

6163

49

58

454640

0

1000

2000

3000

4000

5000

6000

7000

2003 2004 2005 2006 2007 2008 20090

10

20

30

40

50

60

70

National Relocations NCEDC Attraction Leads

Source: Angelous Economics, 2010 & NCEDC

53%Decrease

3%Decrease

Why?? • Market of Over 500,0000 People

• Movement From Expensive Urbanized Markets to Secondary Markets

– Land– Labor– Operating Costs

• Desire to Be Preferred Employer

• The “Vestas” Factor

• Increased Marketing– Relationship Sales – Repeat Business– Partnerships with Metro Denver EDC and State Office of ED

• Employee Transferee Issues

What Type of Demand Are We Seeing? Business Attraction

NCEDC Active Prospects by Type (Business Attraction)

9%

54%

32%

5%

Distribution

Manufacturing

Office

R&D

Prospects By IndustryBusiness Attraction

NCEDC Active Prospects Breakdown by Industry4%

15%

18%

4%

4%19%

4%

4%

4%

8%

8%

4%4%

Assembly

Back Office/Customer Service

Construction

Data Center

Distribution

Energy

Infrastructure

Education

Publishing

Aerospace

Transportation

Brewery

I/T

2007-09 NCEDC BUSINESS RETENTION & EXPANSION ACTIVITY

30

35

22

33

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 Projected

What Type of Demand Are We Seeing? Business Retention & Expansion

BR&E Active Prospects by Type

71%

22%

7%

Manufacturing

Office

R&D

Prospects By IndustryBusiness Retention & Expansion

BR&E Prospect by Industry

4%7%

15%

11%

11%11%

4%

11%

19%

7%

Agriculture

Assembly

Bio/Life Sciences

Construction

Energy

Engineering

Healthcare

IT/Software

Service

Transportation

Thank You For Your Support and Partnership!!!