1 / 42

Impact Denver ED 101 What you will learn in this session…

Learn about Denver's economic development and the factors that contribute to its growth, including job creation, population growth, and the importance of primary jobs and economic clusters.

vbrough
Download Presentation

Impact Denver ED 101 What you will learn in this session…

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Impact DenverED 101What you will learn in this session…

  2. How to explain economic development to your friends AND be the center of attention at all your parties

  3. Good News Everywhere • #1 Economy in the nation • # 2 Most highly educated state • #1 Lowest obesity rate in nation • #3 State economy • #1 Physical activity • #1 Best place for business and careers • #1 City and region for job growth • Top 10 cities for population growth - Denver

  4. Employment growth varies across the state Source: U.S. Bureau of Labor Statistics.

  5. Metro Denver has highest median household income Area (Median HH Income) Source: U.S. Census Bureau, American Community Survey 2013.

  6. Migration of people U.S. migration vector from East to West remains unchanged. New vector from Latin America Colorado now “first choice” of 25-34 year old migrants

  7. Population Growth

  8. Northwest Northeast Projected Annual Avg. Population Growth by 2035: 2.6% Projected Annual Avg. Population Growth by 2035: 1.0% Southeast Southwest Projected Annual Avg. Population Growth by 2035: 1.7% Projected Annual Avg. Population Growth by 2035: 1.1%

  9. Metro Denver Annual Change i Source: Colorado Division of Local Government, State Demography Office.

  10. Job Growth

  11. North east North west Projected Annual Avg. Employment Growth by 2035: 1.3% Projected Annual Avg. Employment Growth by 2035: 1.9% South west South east Projected Annual Avg. Employment Growth by 2035: 1.2% Projected Annual Avg. Employment Growth by 2035: 2.0%

  12. ED = IFR • I Follow Resources • I Follow Rivers • I Follow Railroads • I Follow Roads • Instrument Flight Rules • Information Fiber Routes • International Flying Routes • I Follow readin’, ‘ritin’, and ‘rithmetic. • I Follow roof tops • I Follow rich people

  13. The Basics The purpose of economic development is to give greater numbers of people greater access to wealth. To do so, your job is to increase “income” coming into your market. • There are Two Types of Income • Export income • Primary income

  14. Export Income • Export income occurs when a market produces more goods and services than can be absorbed by the local marketplace. • Products and services are “exported” to other markets in exchange for cash. $

  15. Primary Income Message (ads) • Primary income results from people, usually tourists, who come to the local marketplace to visit an “attraction.” • Advertising is the usual means to inform tourists of the attractions. • Ski resorts, sports teams, arts and culture are typical destinations for primary income producers. $

  16. Jobs that generate “primary” or “export” income are called “Primary Jobs.” • Primary jobs are the principle focus of economic development and are the platinum standard in our profession. That’s why we chase them and why they’re so expensive to get. • Primary jobs create new wealth in a community and replace dollars that flow out to other markets for services not available in the local market. • Primary jobs can be found in “clusters” or not

  17. “Spin-off” or Support Service Jobs • Each primary job creates a demand for services provided by other workers in the local market. • These spin-off jobs either support or provide needed inputs into primary jobs. • They do not create new wealth. They exist because of the primary or export income already circulating in the local economy.

  18. The “multiplier” effect • Is a way to express the number of spin-off jobs generated in support of a primary job. • Some primary jobs have greater multipliers than others. This depends on two things: • The number of inputs required to make the product, and • The magnitude of the wages paid for the primary job. • Typical Metro Denver multiplier: 2.0 – 2.6 • Guided missiles = 3.0+ • Retail trade = .3 - .6

  19. Economic Impact and Economic Activity • Commonly confused and can lead to really bad public policy decisions • Example: Colorado Rockies baseball generates approximately $100 million in revenue from tickets alone. What is the economic impact of Rockies’ ticket revenues on Metro Denver? • Well……………..it certainly is $100 million in economic activity, but how can you tell what’s the economic impact? What data is missing here?

  20. Economic Drivers:Innovation Clusters in the Metro Region

  21. Seeing Ourselves as Others See UsThe Power of Regionalism • The economic powerhouses in the world are no longer countries, but the metropolitan regions within them. • The Top 100 metropolitan areas sit on only 12 percent of the U.S. land mass but are home to two-thirds of our population and generate 75 percent of the U.S. GDP • Metro Denver was among the first regions in the country to see, think and act regionally. • Pena’s “Water Card” • DIA • Metro Denver Network • SCFD • Stadiums • FasTracks • Lowry

  22. What is a “Cluster”? • Cluster should not be confused with the vernacular, which we now call a “Monkey Wedding.” • “Cluster” is a grouping of employers who congregate in a market for mutual support, trade, work force skills or available resources

  23. Clusters 2016 • Aerospace • Aviation • Beverage Production • Bio • Pharma • Devices • Broadcast/Telecom 6. Financial Services • Banking • Insurance • Investments 7. Healthcare/Wellness • Software/IT • Telecom

  24. Metro Denver Industry Clusters Growth over Six Years 2005 - 2010

  25. Metro Denver Industry Clusters 2012-2013

  26. 2014 - 2015

  27. Why Companies Locate • 60 minutes from international airport • Proximity to markets • Labor skills/availability • Tax and regulatory • Close to major universities • Broadband • Quality of life issues • Cost of doing business • Strong and stable political leadership • Incentives • New or planned infrastructure

  28. “Every city gets to make “century” decisions. In all of these there is only one common element – the business community. It brings ‘continuity’.” Bruce Rockwell

  29. The Century Decisions Prior to 1980 • Denver Pacific Railroad to Cheyenne, Wyoming • The water decisions of the 19th & 20th centuries • The Moffat Tunnel • The City Beautiful Movement • Stapleton • The Valley Highway • Lowry and Fitzsimons purchases

  30. City and County Building 1934 -2006

  31. 1930’s – A New “Port” Stapleton Airport opens as Mayor Ben Stapleton sees the opportunity of commercial air service

  32. “The man who insists upon seeing with perfect clearness before he decides, never decides.” Frederic Amiel

  33. A culture of collaboration begins in 1987 • Putting an end to years of suspicion, prairie wars and ill will following the Oil Bust of 1983. • Scientific and Cultural Facilities District (arts and culture) • Metro Denver Network (economic development) • Stadium District • Metro Mayors Caucus (regional policy – transportation, housing, infrastructure projects) • DIA – sort of, but “regionalism” brings home a new, better opportunity in 2015 with the Aerotropolis • FasTracks

  34. Regionalism becomes our trademark • National media, syndicated columnists, Brookings Institute, Governing Magazine, Fortune, Forbes, WSJ, London Times, New York Times, Boston Globe, LA Times….. “Denver’s collaboration results in stronger, more diversified economy.” • Compare to 1984 headline in Forbes: The Denver Economy: You Can’t fall off the floor.”

  35. A $1.04 billion gift for collaboration • Gold Line, Westminster Line and DIA Line receive massive infusion for construction of three transit lines. • 16 metro areas around the nation compete • Secretary of Transportation Ray LaHood, when presenting check to RTD said, “I can say this without a single contradiction of all the 200+ metro areas I’ve visited as USDOT Secretary, ‘there is no more collaborative metropolitan area in the nation, than Denver.”

  36. The Century Decisions since 1990 • Mountain Backdrop • DIA • Fitzsimons and Lowry • The 470s • Lower Downtown • T-REX and FasTracks

  37. The 21st Century Decisions

  38. FasTracks and Union Station • Doubling the Airport for 100 million passengers • Fixing I-70, east, west and thru town

  39. Partial Cover Lowered Option • Remove viaduct between Brighton and Colorado Blvd. and put I-70 below ground • Cover highway near Swansea Elementary • Keep Purina Plant and Swansea Elementary • Greater cost and ROW impacts

  40. Other 100 year decisions await you • Fund higher education in a manner that makes a college education attainable to middle class families. • The smartest kids in the country through P-20 education reform. • A new strategy for water – a 75 year “band aid”. • An end to oil dependency…for a least 100 years.

  41. “I like to see a man proud of the place in which he lives. I like to see a man live, so that his place will be proud of him.” Abraham Lincoln

  42. Remember…..You are judged not by where you are today, but where you are going tomorrow.If you don’t know where you’re going…any consultant can take you there.

More Related