HomeMy WebLinkAboutApril 25 2018 Work_Session_ with_ EDA_ Agenda_PacketFrederl"'ekVAca
ECONOMIC DEVELOPMENT AUTHORITY
AGENDA
JOINT MEETNIG
ECONOMIC DEVELOPMENT AUTHORITY & BOARD OF SUPERVISORS
WEDNESDAY, APRIL 25, 2018
1 5:30 PM — 6:30 PM
COUNTY ADMINISTRATION BUILDING @ BOARD OF SUPERVISORS MEETING ROOM
107 N. KENT STREET WINCHESTER, VA
1. Call to order
2. Chair's comments
3. Brief recap of activities from since last joint meeting
4. Virginia Economic Development Partnership's view on overall trends in economic
development
S. Discussion of EDA focus and planned activities for next 12 months
6. Board of Supervisors concurrence/endorsement of EDA focus and planned activities
7. Adjourn
YOUR MOVE. OUR COMMITMENT
45 E. Boscawen St. Winchester. VA 22601 0 540-665-0973 0 YesFrederickVA.corn
Frederl"'ekVAca
ECONOMIC DEVELOPMENT AUTHORITY
DATE: April 20, 2018
TO: Frederick County Board of Supervisors
FROM: Patrick Barker, CEcD
Executive Director
CC: Kris Tierney
County Administrator
RE: Joint Meeting EDA & BOS Background Materials
The EDA Board looks forward to its annual discussion and review of the Board of Supervisors'
expectations for economic development. This year's agenda (enclosed) will provide a brief
recap of activities over the last 12 months. Jay Langston with the Virginia Economic
Development Partnership will provide the State's perspective on how corporations are selecting
where they plan to invest and/reinvest. Then, the EDA will look to the Board of Supervisors' for
their feedback/endorsement to planned activities for the next 12 months.
The chief planned EDA activities for 2018-2019 center around short-term workforce and site
readiness. Why these two areas? These elements are constantly ranked as some of the top
factors with local influence used by corporate decision makers and site consultants when
making business location and expansion decisions per Area Development Magazine's Annual
Survey. County EDA staff routinely shapes its strategy based on this annual survey.
The full combined rankings of each group are included below.
YOUR MOVE. OUR COMMITMENT
45 E. Boscawen St. Winchester. VA 22601 0 540-665-0973 0 YesFrederickVA.corn
Combined Ratings -
CORPORATE SURVEY 2017
Ranking
i. fghway accessibilily,
91.3
94.4[1)"
2. labor c osts
91.1
99.613)
3. Availability of skilled labor
88.8
69.812)
Qualify of life
97.2
76.4 [101
Tax exemptions
80
79.7 [7)
Occupancy or construction coils
83.9
660 [4)
Proximiiy to major markets
84 6
75.1 19)
Corporate lax rote
83.2
82,.3 [6)
Slate and local incentives
81.3
StO [5)
Available land
76.9
7b.3 [12)
Expedited or "foiKhack"' permitting
76.7
71.7 [13)
Froxir,Niy to suppliers
76.4
"0 [20)
Energy availability and costs
76.0
7&5 [8)
Available buildings
75.9
75.5 [11J
Right- to, work stale
74.7
70.1 [16)
Training progroms/lechnical colleges
72.8
66.7 [15)
lnboundhmtbound shipping costs
71.8
49.1 1171
low union profle
71.4
70.8{14T)
17. Environ mental regulations
701
708[14j
20. Availability of long "term financing
64.6
60 [1ST)
21. Accessibility to major akporl
6&4
S14 [22)
22, Raw materials availability
$6.0
517 [211
23. Water availability
55.3
4&3 [24)
24. Availability of unskilled ksbor
52.0
S1.9 [23)
25. Pro)d"iy to Innovabonicommertidmaftar
RRD cerders 44.7
39.2 [20
26. Availability of advanced I0 services
42.7
4a9 [25l
27. Waferwayor oceanpodacce%lil ly
31.2
1&1 [28)
28, Railroad service
29.9
33.7 [27)
'Ad figures are percenloges and are the total of the "very important'
and "important" ratings of the Pupa DeveJoprnent Corporate Survey
and are rounded to the nearest If --nth of o percent,
2016 rarkina
Page 2 of 6
Joint Meeting EDA & BOS Background Materials
Combined Ratings,
CONSULTANTS SURVEY 2017
Site Selection Factors
2017
2016
Ranking
Availability of skilled labor
100.0
100.0
(1)"
2Labor coitr
9813
95,6 (3)
2T. Proximity to major markets
98.3
95.9 (3T)
4. State and local incentives
96.6
Kill (3T)
S. Highway accessibility
95,0
98.7 (2)
5T Available land
95.0
95.9 (3T)
- Available buildings
9$.0
88.9 (11)
Accessibility to major airport
9S.0
88,6 (12)
Fax exemptions
93.3
95,8 (3T)
10.7ralning progsoms/technical schools
91.7
91.7 (10)
11. Energy eivailobility and costs
9010
93,0(8)
11T, Proximity to suppllers
90.0
93.0 (8T)
13. Expedited or "fast -track" permltling
88.3
87.3 (13)
14. Inbound/outbound shipping costs
88,2
84.6 (15)
15- 0"vpancy or construction cosh
85.0
86.0 (14)
16. low vnlon profile
80.0
82.0 (16)
17. Right-to-work state
78.3
76,4 (19)
18. Enoorim ental regulations
75.0
80.3 (17)
19. Availability of unskilled labor
71.6
49.0 (22)
20. quality-otdife
71.2
43.3 (24)
21. Corporate tax rate
70.0
78.9 (18)
22. Avatlabiilty of advanced IC7 services
67.9
69.5 (21)
23. Raw materials availability
66.6
64.8 (23)
24. Water ovollability
55.0
7P.2 (2o)
26. Railroad service
53.3
45.1
(26)
26. Proximity to Innovation/
commercialisation/RAD centers
51A
42.0 (25)
21. v [abili of Ion .t mtinor in 1.7
figures re per �nages anr� a�e she total of the "very mportant"
40.8
and "Important" ratings of the A[eal}-eyQ opmad Consultants Survey
and are rounded to the nearest tenth of a percent.
2016 ranking
The EDA has reviewed the list of identified factors and have identified below those areas over
which localities have some influence:
• Availability of skilled labor
• Available land
• Quality of life
• Local incentives
• Expedited or fast track permitting
• Training programs/technical schools
45 E. Boscawen St. Winchester, VA 22601 0 540-665-0973 0 Yes Fred eri ckVA. com
Page 3 of 6
Joint Meeting EDA & BOS Background Materials
Planned Activity #1 1 Partner with local and regional stakeholders to create solutions to
current projected workforce needs.
As noted in the above ranking, availability of workforce is often cited as a top factor in how
corporations and site selectors decide where to invest. Frederick County, like other
communities across the Commonwealth and the Nation, face a variety of workforce challenges.
Low unemployment, coupled with existing demand from existing employers and new economic
development projects, creates a significant issue for the short term and beyond.
The EDA plans to further its conversations with County employers and its workforce partners to
collaborate on proactive solutions to addressing labor needs. A hardened focus will occur on
those occupations with the greatest need and that offer moderate entry levels and a profitable
career path. The following table provides a snapshot of those occupations.
FREDERICK COUNTY TOR 2 YR OCCUP. BY NEED Irv/ ENTRY SALARY $36,000 +
TitleN
al
Entry Level
Experienced
Require
Tramming Requirement
Len -ding 1,NFCU
1 265
1 S55,604
1 $55,6col
4C
I Moderete-term 0JT
' ntact Center [NFCUj
1 2001
S45r104
I $4S,1001
HS
Short-term OJT
eneraland Operati-ons Managers
89
S48;004
I S139,s00
I4C
Nune
ISO (NFCU)
831
S94r604
1 $94,6001
cc
I Moderate -term OJT
Elem entary School Teachers, Except Special Education
61
540r904
$63,500
4C
Nane
Business Operations Specialists, All Other
55
SSV00
$79,3001
4C
I None
First -Line Supervisors of Production and Operating
arkers
53
S36r904
$70,700
HS
None
First4ine SuperMisnrs of Cbns=ctidn Trades and
Extraction Workers
51
S44504
$67,100
HS
None
Industrial Machinery Mechanics
1 49
S41r000
1 $59,600
HS
Long-term OFT
ccauntants and Auditors
I 4F,
1 541,000
$88,s00
4C
Nane
condary School Teachers, Except Special and
reer[Technical Education
FEler=tricians
46
S38r604
$71,100
4C
Nane
1 42
S36r304
$58,700
HS
Apprenticeship -
Managers, All Other
331
S71,6001
S123,90CI
4C
Name
ManagementAnaIVsIs
1 321
SS4,3001
S107,6001
4C
INane
Middle School Teachers, Except Special and
reerfTechnical Education
30
I
S37r704
%9,100
fay
Nane
_
Loan Of icers
1 26
S37r404
$57,100
BS
I Mcpcierate-term_OJT
First -Line Supervisors of Mecha nirs, Installers, and
Repairers
27
S46r104
$80,700
HS
Nane
Financial Managers
1 25
S78r404
S173,s00
BS
I Nane
' nstruction Managers
25
S74r204
I S212.,300
BS
Moderate -term OJT
Human Resources Specialists
1 24
S40r204
$81,300
BS
I Nacre
Farmers, Fla ncher5, and Other Agricultural Ma nagera
23
SS 5r204
I $84,400
HS
Nane
First -Line Supervisors of Helpers, Laborers, and Material
Movers, Hand
23
S42r904
$63,600
HS
None
ea{hers and Instructors, All Other
1 22
S36r600
$57,100
4C
Nane
Source: JobsEQ with 2017 Frederick County Announcements
In response to this top factor, the EDA will examine concepts that leverage any financial
investment, complement existing programs and involve employer participation. For example,
potential examples could focus on enhancing/creating a training pool for new and/or
incumbent workers while at the same time creating a pipeline for future workforce via a clear
45 E. Boscawen St. Winchester, VA 22601 0 540-665-0973 0 Yes Fred eri ckVA. com
Page 4 of 6
Joint Meeting EDA & BOS Background Materials
career pathway to high demand occupations, which would include providing educational
outreach for students, parents, educators and underemployed individuals. In addition, the EDA
will aim to improve the retention and attraction of young adults from regional high schools and
universities/community colleges by delivering programs and tactics to overcome to -be
identified obstacles and implement talent attraction strategies.
Planned Activity #2 1 Encourage development "ready to go" business sites.
As noted earlier, available land remains a top factor in site selection by corporations. The need
for speed to market matters for most economic development prospects, which chiefly drives
why this factor ranks high. Projects are seeking to move in months. For a community to
succeed, they need ready to go sites. In short, a ready to go site has the following:
• All risks and unknowns have been discovered;
• The schedule of how the site can be developed is fully understood;
• Costs of development are known and controlled;
• The speed of which construction can start is known.
The Virginia Business Ready Sites Program was created to enable sites to be evaluated using a
tier system that looks at a variety of site factors to include: ownership, zoning, and
infrastructure to name a few. A brief description of the different tiers is described below:
(i) Tier 1: Site under (a) public ownership, (b) public/private ownership, or (c) private
ownership which such private owner(s) agreeable to marketing the site for
economic development purposes and to allowing access to the property for site
assessment and marketing purposes, but at no established sales price.
Comprehensive plan reflects site as appropriate for industrial or commercial
development and use, but site is not zoned as such. Site has minimal or no
infrastructure. Minimal or no due diligence has been performed.
(ii) Tier 2: Site under (a) public ownership, (b) public/private ownership, or (c) private
ownership with an option agreement or other documentation of a commitment by
the private owner(s) to a competitive sales price, to permit access to the site for site
assessment, construction, and marketing, and to market the site for industrial or
commercial economic development purposes. Comprehensive Plan reflects site
intended for industrial or commercial development and use, but site is not zoned as
such and a rezoning hearing needs to be scheduled. Site has minimal or no
infrastructure. Minimal or no due diligence has been performed.
(iii) Tier 3: Site is zoned for industrial or commercial development and use. Site has
minimal or no infrastructure. Due diligence including, among other things, a
wetlands survey with Army Corps of Engineers approval within the last five years,
geotechnical borings, boundary and topographical survey, cultural resources review,
45 E. Boscawen St. Winchester. VA 22601 • S40-665-4973 • Yes Fred eri ckVA. com
Page 5 of 6
Joint Meeting EDA & BOS Background Materials
an Endangered Species review, and a Phase I Environmental Site Assessment, has
been completed. Estimated costs of development have been quantified.
(iv) Tier 4: All infrastructure is in place or will be deliverable within 12 months. All
permit issues have been identified and quantified.
(v) Tier 5: All permits are in place and the site is ready for a site disturbance permit
from the locality in which the site is located.
In response to this top factor, the EDA is proposing to undertake a site assessment of the
large land bays in Frederick County and evaluate those parcels using the guidelines of the
Virginia Business Ready Sites Program. This site assessment will determine the current tier
level, and any additional actions needed to move the site to the next tier.
At the conclusion of the site assessment exercise, the EDA will communicate with the sites'
landowners and their site development partners to collaborate on solutions to improve the tier
status of these sites.
The EDA is seeking the Board of Supervisors' endorsement or concurrence with the two
identified activities for the next 12 months:
Planned Activity #1 1 Partner with local and regional stakeholders to create solutions to
current projected workforce needs
Planned Activity #2 1 Encourage development of "ready to go" business sites.
Should you have any questions regarding either of these planned activities, please do not
hesitate to contact me.
45 E. Boscawen St. Winchester. VA 22601 0 540-665-0973 0 Yes Fred eri ckVA. com
Page 6of6
Joint Meeting EDA & BOS Background Materials
Jay A. Langston
Biography
Jay Langston is the Managing Director of Business Retention & Expansion within the Business
Investment division of the Virginia Economic Development Partnership. He is responsible for
coordinating the Business Retention & Expansion Managers on existing business calls in
collaboration with Virginia's Localities. In his tenure with VEDP, he has been Sr. Advisor,
coordinating with VTC and performing community assistance, Sr. Coordinating Director and Sr.
Research Manager.
Prior to joining the Virginia Economic Development Partnership, Jay spent eight years as the
executive director of Virginia's Gateway Region, and seven years with the Chesterfield County
Department of Economic Development as the senior marketing representative. He began his
economic development career in Georgia where he was a Project Manager for the Georgia
Department of Industry & Trade.
Jay graduated with a B.S. in Industrial Management from Georgia Tech, a Masters in Public
Administration and a Ph.D. in Public Policy at VCU. He served a president and was an officer for
7 years for the Virginia Economic Developers Association, and has served in board and advisory
capacities with numerous organizations.
45 E. Boscawen St. Winchester. VA 22601 0 540-665-0973 0 Yes Fred eri ckVA. com