strategic economic development plan › user... · sample of rental housing units boyle county,...

January 25, 2017

Presented By:

K yl e Ta l en t e , Vi ce P r e s i d en t /P r i nc i p l e

R K G A s s o c i a t e s , In c .

TARGET INDUSTRY/WORKFORCE

ANALYSIS

STRATEGIC ECONOMIC

DEVELOPMENT PLAN

Danville/Boyle County Economic Development Partnership

Optimize and resource an organizational structure for implementing

economic development that maximizes efficiency and effectiveness

of the key stakeholders.

Establish a consensus among the implementation partners on the

economic development vision of the community, the actions

necessary to accomplish the vision, and role each need to play.

Develop strategies that attract more high paying jobs, preferably

with benefit packages.

Positively impact the occupational tax revenues for Boyle County

and the City of Danville.

2

ECONOMIC DEVELOPMENT GOALS

Create a more business friendly environment that encourages the

expansion of existing businesses and promotes an entrepreneurial

spirit.

Diversify and support retail and service offerings to enhance the

livability and convenience for County residents.

Pursue economic development strategies that help maintain the

community character and quality of l ife that is an asset for Boyle

County.

3


Support the further development of Boyle County’s tourism and

recreation activities to enhance their positive economic impact on

the community.

Create better connections between education/workforce

development and employment opportunities to provide

opportunities for existing residents to flourish in Boyle County.

4


Kick-Off Meeting

Initial Stakeholder Interviews

Demographic Analysis

Economic Base Analysis

Initial Real Estate Market Analysis

Target Industry and Workforce Analysis

5

WORK COMPLETED

6

COMPETITIVE

ASSETS/CONSTRAINTS

ANALYSIS

7

Kentucky ranks near the top of competitive markets* in health care

and in the middle for education.

Health Care

Uninsured Rate (14th)

Uninsured Low-Income Children (15th)

Employee Share of Premium (16th)

Uninsured by Income (18th)

Education

Four-Year Degree by Race (4th)

High School Graduation Rate (9th)

Reading Proficiency (18th)

Average College Graduate Debt (18th)

NOTABLE COMPETITIVE STATE ASSETS

*Competitive Markets: Alabama, Mississippi, Indiana,

Ohio, Tennessee and South Carolina

Rankings part of the 2016 Assets & Opportunities

Scorecard by the Corporation for Enterprise Development

8

Kentucky ranks in the middle of competitive markets for housing and at the bottom for business and jobs but performs well on specific metrics.

Business and Jobs

Unemployment by Race (9th)

Employers Offering Health Insurance (15th)

Business Value by Race (18th)

Housing & Homeownership

Housing Cost Burden – Owners (14th)

Affordability of Homes (15th)

Housing Cost Burden – Renters (20 th)

NOTABLE COMPETITIVE STATE ASSETS

Rankings part of the 2016 Assets & Opportunities

Scorecard by the Corporation for Enterprise Development

Kentucky offers a broad range of incentives for new and existing

businesses.

Kentucky Economic Development Finance Authority

Incentives include tax credits, direct loans, tax refunds, facility

rehabilitation investments and funding sources.

Industries that are most applicable to Boyle County: Small businesses and entrepreneurs

Agri-business

Tourism

Manufacturing

Service and Technology

Health Care

Making a better connection/marketing effort tied to the Kentucky

Cabinet of Economic Development incentives is essential.

9

INCENTIVES

Kentucky ranks in the middle of competitive markets in financial

assets, but at the bottom for businesses and jobs.

Financial Assets & Income

Income Poverty Rate (48th)

Households with Savings Accounts (48th)

Access to Revolving Credit (44th)

Bankruptcy Rate (44th)

Underbanked Households (41st)

Income Inequality (41st)

Businesses & Jobs

Private Loans to Small Business (46th)

Small Business Ownership Rate (45th)

Business Ownership by Race (44th)

Business Ownership by Gender (41st)

Low-Wage Jobs (41st)

Business Creation Rate (40th) 10

NOTABLE COMPETITIVE CONSTRAINTS

Kentucky ranks in the middle of competitive markets for both

housing and education, with some exceptions.

Housing & Homeownership

High-Cost Mortgage Loans (44 th)

Homeownership by Race (42nd)

Education

Student Loan Default Rate (49 th)

Four-Year College Degree (48 th)

Two-Year College Degree (47 th)

Four-Year Degree by Income (47 th)

High School Degree (46 th)

Disconnected Youth (44 th)

Early Childhood Education Enrollment (43 rd)

11

NOTABLE COMPETITIVE CONSTRAINTS

Boyle County/Region Strengths

Highway accessibility (2nd)

Quality of Life (3 rd)

Occupancy or construction costs (4 th)

Labor costs (6 th)

Corporate tax rate (7 th)

State incentives (9 th)

Energy availability/costs (10 th)

Boyle County/Region Opportunities

Availability of skilled labor (1 st)

Availability of buildings (5 th)

Proximity to major markets (8 th)

Local incentives (9 th)

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SITE SELECTION FACTORS

13

2015 2010 2005 2000

TOP 10 SITE SELECTION FACTORS

Availability of Skilled Labor 92.9 85.9 (6) 87.2 87.7

Highway Accessibility 88.0 97.3 (1)* 91.4 95.9

Quality of Life* 87.6 62.1 (10) 54.7 58.8

Occupancy or Construction Costs 85.4 89.8 (3) 83.7 83.0

Available Buildings 83.7 81.0 (8) N/A N/A

Labor costs 80.8 91.0 (2) 87.9 91.6

Corporate Tax Rate 78.8 86.3 (5) 85.0 84.7

Proximity to Major Markets 76.3 66.4 (9) 83.2 76.8

State and Local Incentives 75.8 89.3 (4) 86.0 83.6

Energy Availability and Costs 75.3 82.1 (7) 82.8 77.7

* (2010 Ranking)

Top Site Selection Factors, 2000 - 2015

Corporate Survey, Area Development Magazine

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James B Haggin Memorial Hospital

Ephraim McDowell Regional Medical Center

Ephraim McDowell Fort Logan Hospital

Major Medical Facilities

17

Total Sales: 221

18

Residential Sales, 2016

Boyle County, Kentucky

Sales Price Range

Ave. Sales

Price/ Ave.

List Price

Average

Square

Footage

Average

Days on

Market

$0 - $50,000 91.3% 1,240 110

$50,000 - $100,000 94.1% 1,422 130

$100,000 - $150,000 96.4% 1,769 161

$150,000 - $200,000 94.8% 2,310 178

$200,000 + 94.0% 3,020 145

Total 94.6% 2,004 149

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OWNERSHIP UNITS

Broker Feedback

Ownership units in Boyle are less expensive than Lexington but

more expensive that surrounding communities.

Majority of buyers are looking for three bedroom single family

homes.

Limited new construction available in the market.

Schools, the hospital and quality of l ife attract buyers to the area.

Boyle County is a lower cost option for persons employed in

Lexington where salaries and the cost of l iving are perceived to be

higher.

20

Sample of Rental Housing Units

Boyle County, Kentucky

Min Rent Max Rent

SINGLE FAMILY UNITS

2 Bedroom $550 $600

3 Bedroom $595 $1,100

4 Bedroom $1,000 $1,200

TOWNHOUSE

2 Bedroom $495 $495

3 Bedroom $725 $825

DUPLEX

3 Bedroom $600 $600

QUADRAPLEX

1 Bedroom $375 $375

APARTMENTS

1 Bedroom $325 $395

2 Bedroom $450 $550

21

RENTAL UNITS

Web-based search indicates that vacancy is extremely low and less

than 10 units l isted are available.

However, area brokers indicate that can typically find a rental unit

for potential renters.

Alternate listing sources, word of mouth

Broker Feedback

Renters are young professionals, retirees or transient households

(i .e. company executives/upper management).

Rents in Boyle are lower than Lexington but higher than

surrounding communities.

Two bedroom units in apartment style buildings are most common.

Single family home rentals are typically three or four bedrooms.

Kentucky is well positioned regionally, but does not lead its primary

competition

Current efforts/incentives good, but not great

Changing state leadership may change these fortunes

Still a gap for smaller opportunities

The economic development fundamentals are good for Boyle County

County/region competitive in a number of site selection attributes

However, those local assets are also assets for our neighbors

Boyle remains the economic center, but neighboring communities

closing the gap

Operational and physical investment

Internal coordination

Stealing from Boyle’s old playbook

22

IMPLICATIONS

Boyle County needs to distinguish itself from the pack

Continue to pursue a focused economic recruitment strategy

Expand retention/entrepreneurial support

‘Fill the gap’ for small business/entrepreneurial development

Tourism/agribusiness development

Branding study revealed one of the most notable challenges is

external awareness

Take advantage of County assets with proactive marketing

Hospital, college, sizable/sustainable downtown, housing market

Expand the economic development ‘story’

Transportation assets, site availability

Enhanced virtual and print materials

Some of this will come in focus with recruitment/retention decisions

23

IMPLICATIONS

More strategic/aggressive investments will be necessary to address

new economic development paradigm

Unified and consistent building/property inventory

Speculative building development

More streamlined/’friendly’ regulatory environment

Local incentives

24

IMPLICATIONS

25

WORKFORCE ANALYSIS

27

Total Occupations Measured:

344,420

A wide range of workforce development opportunities exist for

students, adults and employers

Core competency/soft skill achievement

Specialized training opportunities

2-Year degrees

Retraining/reemployment counseling and training

Local, regional and Kentucky entities make efforts to provide the

skills and training relevant to existing businesses and target

industries.

Surveys

Relationship-building

Communication channels (i.e. boards, committees)

28

WORKFORCE DEVELOPMENT

Industry-specific workforce development opportunities are

available in target industries

Multiple Industries:

Training and licensure preparation and exams (BCTC)

Technical coursework (BCTC)

Teacher certification preparation (Centre College)

Practical Experience/Vocational Coursework (BCSD)

Lincoln County o r Garrard County Technical Centers

Advanced Manufacturing:

Advanced Manufacturing Apprenticeship (KY FAME)

Potential advanced manufacturing coursework pending successful grant

application (BCTC)

Noted challenge about capacity, not quality

BCTC, Public schools…29

WORKFORCE DEVELOPMENT

Foster inter-organizational connections both locally and regionally

Expand marketing and outreach efforts

Engage a comprehensive Countywide business needs survey

Increase awareness of existing programs, courses and resources

Include opportunities at all levels – local, regional and commonwealth

Increase awareness of scholarship and financial incentives for

workforce development to existing businesses

Grant–In–Aid (Bluegrass State Skills Corporation)

Skills Training Investment Credit (Bluegrass State Skills Corporation)

Work Ready Skills Initiative

30

INITIAL RECOMMENDATIONS

Form the relationships/partnerships necessary to lead the way in

workforce development programming for the region.

Identify most effective programs and expand

Collaborate with school districts to increase exposure soft skills

proficiency

Build structure and relationships to be an incubator for new programs

Increase workforce development coordination

Form an Education & Workforce Workgroup

Facilitate the dialogue about local business needs, regional industry

targets, successes and challenges

Identify ways to consolidate efforts to increase effectiveness

Example: Share programming and best practices across both school districts

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INITIAL RECOMMENDATIONS

32

TARGET INDUSTRY

ANALYSIS

Factors Considered in the Cluster Analysis

Industries with strong local presence

Regional industry cluster analysis

Industries with growth potential

Local success

Positive regional trends

Identification as a Target Industry by Boyle County and Kentucky

Industries that capitalize on Boyle County’s strengths

Building Availability/Redevelopment Potential

Connectivity

Workforce fit

Existence of other similar or supporting firms

35

METHODOLOGY

Technical, Research, Consulting and Corporate Operations

Professional Services

Professional, Scientific and Technical Services (Moderate)

Architectural, Engineering, and Related Services

Information Services

Information (Moderate)

Publishing Industries (except internet)

Other Information Services (Online Publishing)

Software Publishers

Technical Research and Modeling

Computer Systems Design and Related Services

Scientific Research and Development Services

Other Professional, Scientific, and Technical Services

36

TARGET INDUSTRY CLUSTERS

Technical, Research, Consulting and Corporate Operations

Market-Based Relationships

Management of Companies and Enterprises

Support Industries

Office Administrative Services (Moderate)

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

Facilities Support Services

Business Support Services

Other Financial Investment Activities

Activities Related to Credit Intermediation

37


Primary Action

Inventory available space (including potential upper story space)

Market existing space to small firms that prioritize quality of life and do

not require extensive on-site access to client base

Secondary Action

Work with Centre College on connecting majors to internships/work

study opportunities

Engage BCTC and area school districts to provide programming and

training to develop the existing and future workforce

Long-Term Action

Focus rehabilitation of existing buildings to facilitate the needs and size

of these businesses

38

PRELIMINARY NEXT STEPS

Local and Regional Distribution

Logistics (Moderate)

General Freight Trucking

Specialized Freight Trucking

Freight Transportation Arrangement

Physical Distribution

Warehousing

Wholesaling

Order Processing, Data Processing and Back Office

Process, Physical Distribution and Logistics Consulting Services

Internet Service Provides

Telecommunications Carriers

Data Processing, Hosting and Related Services

39


Primary Action

Invest in improvements in the existing building inventory to meet the

needs of modern transportation and warehousing firms

Proactive marketing efforts to potential target businesses

Enhance investments in fiber infrastructure

Secondary Action

Identify needs of firms and develop spec-buildings to attract new

business and compete with surrounding communities

Create better defined strategy to market rail/air goods movement

Continue to cultivate relationships with airport/Norfolk Southern

Long-Term Action

Focus logistic uses along major transportation corridors and regional

transportation connectors

40


Production

Advanced Manufacturing (Strong)

Transportation Equipment Manufacturing

Printing and Related Support Activities

Plastics and Rubber Products Manufacturing

Machinery Manufacturing

Precision Instruments and Equipment Manufacturing

Wood Product Manufacturing

41


Primary Action

Expand marketing/recruitment efforts in target industry areas

Target businesses that can utilize existing vacancy

Expand collaborative effort with region/state EDO on marketing trips

Lobby for BCTC expansion grant/funding strategy

Secondary Action

Invest in improvements to the existing inventory or redevelopment

efforts to remain competitive with surrounding communities

Work with BCTC and workforce development partners to train existing

and new employees in high demand skills

Build 25,000 to 50,000 square foot speculative building

Create public-private partnership that is sustainable

Long-Term Action

Expand partnerships with regional and Kentucky -wide industry leaders to

keep up-to-date on the changing needs of this industry 42


Health Care & Institutional

Health Care & Social Assistance (Very Strong)

General Medical and Surgical Hospitals

Specialty Hospital Services

Outpatient Care Centers

Offices of Physicians

Offices of Dentists

Offices of Other Health Practitioners

Social Assistance

Home Health Care Services

Child Day Care Services

Community Care Facilities for the Elderly

Research and Support Facilities

Medical and Diagnostic Laboratories

Diagnostic Imaging Centers

43


Primary Action

Work with Ephraim McDowell to identify growth areas/areas of need

Execute implementation strategy

Further develop relationship between Ephraim McDowell, Centre College

and BCTC to forge more direct partnerships for workforce development

Survey private practitioners in ambulatory health care services to identify

needs and expansion opportunities

Secondary Action

Cluster additional development of medical uses in areas with major

transportation access and room for expansion

Identify partnership opportunities with Centre College to further invigorate

Downtown Danville

44


Entertainment & Recreation

Dining Facilities

Food Service and Drinking Places (Moderate)

Special Food Services

Restaurants

Downtown Amenities

Amusement and Recreation Industries (Moderate)

Events and festivals

Accommodation

Bed and Breakfasts

Limited Service Hotels

Tourism

Museums, theaters, and arts

Agri-tourism (i.e. Bourbon Trail)

Nature tourism

45


Primary Action

Work with existing entrepreneurs to identify ways to facilitate additional

investment in addition to the Jump Start Program.

Recruit locally focused retail for Perryville and local and regional

retailers for Danville that are scaled to demand

Implement recommendations in Branding Strategy

Secondary Action

Identify and actively market a downtown boutique hotel concept to large,

reputable hoteliers

Create connections between event venues to create tourism packages

Cross-marketing (i.e. hiking and Civil War history)

Long-Term Action

Assess the feasibility to expand attractions to further develop Boyle

County as a major destination in Central Kentucky46


Thank You.

47

QUESTIONS?

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