EconDev

2019/20 Committee Meetings & Events Schedule Now Available!

The partnership is known as an organization that ‘rolls up its sleeves’ and gets to work for the entire PHX East Valley region.  With that, we are excited to distribute the 2019-2020 Meeting Schedule to our member organizations. This year we have made a few changes to our overall committee structure and we look forward to better serving our members .

  1. Each committee will meet several times per year, unless noted otherwise. This will allow for more in depth agenda topics on various issues happening throughout the region.
  2. The Aviation & Aerospace Committee combined with the  Economic Development Committee will still meet from September to March on various regional Aviation and Economic Development issues. There will be two meetings with a main focus of Aviation/Aerospace and two with a main focus of Economic Development. However, all meetings will highlight the overall growth and development of our region and the assets that make strategic growth possible. Those who are currently serving on either committee will be automatically added to the full distribution list to receive meeting date notifications and agendas. Should you be interested in joining this committee, please let us know!

We encourage ALL members to actively participate in at least one committee that appeals to their individual interests or expertise.

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Please note that meeting locations & additional details are announced in advance of each meeting via committee email distributions lists, unless otherwise indicated.


In addition, we are excited to continue with two annual EVP Community Events:

1) PHX EV Though Leader Forum, presented by SRP 

2) PHX EV Healthcare Summit

Vision: The PHX East Valley Healthcare Summit aims to bring together East Valley Partnership (EVP) members and organizations in our region who are directly involved in the healthcare sector to discuss ongoing issues and points of collaboration.  Additional details are forthcoming.

Announcements regarding our signature events will be made soon. Stay up-to-date on committee meetings and events by visiting our calendar!

Meeting & Event Calendar

Autonomous Vehicles – A Key Industry in Arizona

Autonomous Vehicles in the PHX East Valley

Autonomous vehicles, once a concept of science fiction, are suddenly becoming a reality thanks to big names in the technology and transportation industry. These companies such as Waymo, Intel and GM among others have helped pave the way for the future of safe and efficient transportation.

Self-driving vehicles have the potential to dramatically reduce distracted driving fatalities, and eliminate the human error element in driving. This transformative technology also holds the promise of increasing the mobility of those who can’t operate a vehicle from the old, young and those with disabilities.

Arizona and more specifically the PHX East Valley, has become one of the leading areas for autonomous vehicle testing in the U.S. Due to the amazing weather and the support of Governor Doug Ducey, this region has become a hub for self-driving vehicles sparking industry leaders such as Ford and GM to also move their driverless car operations to Arizona.

Waymo, the Driving Force

Waymo, which is a subsidiary of Google’s parent company Alphabet Inc., has been leading the way in the autonomous vehicle industry.

In early 2016, the company began testing in the Greater Phoenix area and has since partnered with Intel who has a large presence in Chandler, Arizona to design, build and test the vehicles right here in our region. As the industry continues to evolve, the company has taken the initiative in educating the local, Arizona community through their “Let’s Talk Self-driving” campaign for which they have partnered with our organization, the Foundation for Blind Children, Mothers Against Drunk Driving and other nationally recognized organizations who are taking a stand to help educate the public on how self-driving cars can transform our lives.

Development and Testing Continues

In late 2017, Waymo announced that some of the vehicles in their Chandler, Arizona fleet would no longer have a driver behind the wheel (You can read more on this here).  However, most of the company’s fleet still operates with a test driver behind the wheel to take control in the event of vehicle error.  In addition, Waymo launched an Early Rider program for select members of the Arizona community. This allows the public to share in the self-driving vehicle testing experience. (You can read more on this here).

As of today, Waymo’s fleet has collectively driven over 5 million miles and adding more miles each day.

Read more about self-driving vehicles in the PHX East Valley below:

Economist Sees Good Things ahead at EVP Thought Leader Forum

Original Article Via East Valley Tribune


Screen Shot 2017-12-13 at 9.56.42 AMThe economic forecast at East Valley Partnership’s annual SRP Thought Leader Forum projected a sense of measured optimism about the health of the economy at both a national and local level.

Gary Schlossberg, Wells Capital Management vice president and senior economist, presented the forecast and expressed confidence in the economic recovery. He noted that business investment is picking up speed.

“The sense of the economic recovery is that it is more entrenched than ever,” Schlossberg said.

Several positive indicators exist at a national level, including balance between manufacturing and non-manufacturing sectors and the working down of corporate debt.

The normalization of home values is another good sign, Schlossberg said.

He added that interest rates and inflation will grow gradually over time but should not have a negative effect on investment.

The Phoenix Metro area is poised to take advantage of this momentum nationally due its balanced economy – which includes the tourism, business services, financial services and tech sectors – and its competitive cost of living, which is considerably lower than other cities in the Southwest and West Coast.

The cost of living in San Francisco is 82 percent higher than in the East Valley. The cost of living in Los Angeles (46 percent), Seattle (47 percent), Denver (13 percent) and Salt Lake City (9 percent) is higher than the East Valley, according to East Valley Partnership’s 2018 economic profile.

Similarly, the East Valley also offers more affordable home prices than those cities. The average home price in the area is $187,600 compared to the national average of $265,600.

The East Valley also has the population to support business growth as projections have it adding 1 million new residents and 400,000 new jobs in the next 30 years, according to East Valley Partnership’s profile.

Despite the economy’s strengths, Schlossberg’s forecast did include some caveats.

He noted that wealth and income inequality is severe in the wake of the recession and both businesses and consumers are still acting with caution.

Schlossberg also said the economy will be sensitive to the rising interest rates that will likely continue in coming years, which could affect businesses and housing affordability.

Those rising interest rates will also likely prompt a realignment of investment portfolios from riskier to safer assets, a change that could cause some destabilization of the market.

“We can expect to see more volatility in the economic environment than we’ve seen (in recent years),” Schlossberg said.

However, he also said that the U.S. economy will eventually transition to a more normalized environment similar to that in the 1990s.

The polarized political climate in the U.S. is one factor that could negatively affect economic growth, Schlossberg said.

The lack of cooperation between political parties in the country “creates greater swings in economic policy.” That volatility makes it difficult for businesses to create strategic investment and growth plans for the future.

Additionally, the aging population – which will lead to an increase in entitlement payments – and aging infrastructure in the U.S. are causes for concern.

Panel Sees Bright Future for East Valley Sustainability, Development

Sustainability is not just about electric cars, solar panels and recycling. In Mesa, sustainability encompasses a vast range of concerns, extending from education to economic development and public health.

Source: East Valley Tribune

City of Mesa Development Services Director Christine Zielonka addressed the subject as part of a four-person expert panel at the SRP 2017 Forum, which focused on sustainability and development in the East Valley. Salt River Project hosted the event along with the East Valley Partnership.

The panel also included Steve Betts, senior advisor to the Holualoa Companies and Hines Development; Marc Campbell, manager, Sustainability Policy and Programs at Salt River Project; and Steve Sossaman of Sossaman Farms.

Zielonka focused her opening remarks on city leadership’s top-down approach to developing a resilient economy that can help sustainability grow over time. She noted that getting residents to buy into the program is imperative, though the biggest challenge comes from the development community.

“One of our biggest challenges … is getting developers to get on board with the concept of a more resilient economy,” Zielonka said.

She went on to discuss the ways the city has attempted for the past decade to attract jobs to help residents avoid long commutes to other cities for work and has had difficulties bringing developer partners to the table.

Betts, an experienced developer, agreed. However, he does see this paradigm shifting in the post-recession economy as developers rethink their standard economic model to focus less on home building and “building outward” and directing more resources toward infill development, building inward and upward and creating walkable urban spaces.

“This (recession) was different,” Betts said. “I think this one was so severe, and for Arizona and the Valley it was so severe, that it caused all of us to rethink a little bit how we grow and how we build.”

Infill projects provide a variety of advantages for developers and communities. Namely, they take advantage of existing infrastructure at a time when developers do not have the funds to build new infrastructure, Betts said.

Grady Gammage Jr., who delivered the event’s keynote address and moderated the panel, asked how cities like Mesa can deal with “shopping centers that are dying” as a result of many forms of retail moving to the Internet.

“I think you get really creative and really flexible,” Zielonka said. “You find ways, not necessarily just by putting money on the table, to incentivize the reuse of those buildings.”

Those methods include revisiting building codes to remove or modify prohibitive regulations. The city worked with Ross, Dollar General and other retailers that will occupy the old Kmart building at Main and Lindsay Streets to develop a phased-in approach to some improvements to avoid prohibitive costs that could have doomed the deal. Mesa City Council recently approved a development agreement for that site.

Two major examples of adaptive reuse success in Mesa are Santander and Benedictine University. Santander occupies a once-empty big box store on Southern Avenue. The company revamped the interior and made façade improvements to convert the space to support office operations.

Benedictine University worked with the city to completely revamp the former South Side Hospital site. Since that time, the campus has exceeded growth projections and is looking for additional space, Zielonka said.

In what could become the city’s most dynamic infill project, the Fiesta Mall site recently sold to Dimension Financial & Realty Investments, which plans to redevelop the space into a higher-education space complete with housing, food and retail options to support the potential influx of students.

Another way the city attracts business is focusing on the “quality and speed” of how business gets done, Zielonka said. One example of this is the city’s interactions with Apple, which chose to turn its 1.3-million-square-foot facility on the Elliot Road Technology Corridor into a global command center after the previous tenant, an Apple supplier, went out of business.

Apple chose to continue working with Mesa, in part due to ease of doing business with the city, Zielonka said. For instance, Mesa allowed Apple to start a phased occupancy of the facility while it continued to make upgrades to the building.

Despite the buy-in from city leadership and SRP, the city faces challenges. One such barrier is education.

“The thing I get pushback on a lot is our education system,” Betts said. “They keep hearing a lot about the fact that we’re down here at 48th or 49th (ranked) in terms of our education system, so I oftentimes have to defend that.”

Betts went on to note that industry professionals he interacts with are impressed by Arizona’s university and community college systems.

Still, Zielonka recognizes that Mesa must show prospective employers that there is a political commitment to education in Arizona.

“When you look at high-tech companies, they want high-tech kids,” Zielonka said.

In addition to education, jobs and development, Zielonka also made a point to signal public health as a key cog in Mesa’s sustainable development. She emphasized the need to create recreational spaces for residents and promote healthy living.

“How do you provide those opportunities for people to have a healthy lifestyle – to have healthy air, to have clean water?” Zielonka said.

Continue Reading…

RFQ: Master Developer for the Gateway Aerospace Park

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The Phoenix-Mesa Gateway Airport is searching for a qualified firms or teams of firms to serve as Master Developer for the Gateway Aerospace Park at the Phoenix-Mesa Gateway Airport.

The Request for Qualifications deadline is August 9,2016 at 4:00 pm MST ( Arizona) time.

For further instructions, review Notice of RFQ.

 

 

Elliott D. Pollack & Company: Expansion Likely to Continue

Original Blog via Rose Law Group Reporter| Elliott D. Pollack & Company Press Release 

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The Monday Morning Quarterback

A quick analysis of important economic data released over the past week

 

It’s been an interesting week.  The talk from the Fed suggests that a rate increase is a foregone conclusion.  It’s really more symbolic.  The increase from a target of 0.5% to 0.75% is not earth shattering.  It’s more an indication that the economy is strong enough to withstand this and some future increases.  That’s actually healthy.  It gives the Fed more flexibility to deal with a slowdown in the already slow economy when it inevitably does occur.

 

No expansion lasts forever and this one will be no exception.  And while this expansion has been the worst on record by many measures, it is now the fourth longest of the dozen or so post-war expansions. Expansions don’t die of old age. They die because of serious imbalances that occur in an economy. Too much debt, an external shock when things are slow and/or tight Fed policy are some reasons. As of now, none of these seem to be in play. Thus, the expansion is likely to continue.

 

As of now, it appears that when the next recession does occur, it will be mild. Another 2008-like recession does not appear to be in the cards. The irrational exuberance that generally precedes such an event does not seem to be there at the moment. The serious imbalances that existed in 2007-2010 are not there either. So, we will probably continue to move forward slowly. Again, this will allow the Fed to create some breathing room to act when the next recession does occur.

 

This is good news.

 

U.S. Snapshot:

  • Corporate net cash flows are up 0.6% from the 4th quarter but down 3.6% from a year ago as of the 1st quarter of 2016.
  • New orders for manufactured durable goods in April increased 3.4% from March levels and are now 1.9% above year ago levels.  Yet, non-defense goods excluding aircraft were down 0.8% for the month and 5.0% from a year ago.
  • The University of Michigan consumer sentiment index increased to 94.7, up from 89.0 in April and 90.7 a year ago.  May’s results were the best since June last year and among the strongest in this cycle.
  • Sales of new single-family homes were up strongly in April.  New home sales were up 16.6% from March and 23.8% from a year ago.  The median sales price was $321,100, up from $292,700 a year ago.  That’s a 9.7% increase.
  • The National Association of Realtors pending home sales index rose to 116.3 in April.  This is up 5.1% from March and 4.6% from a year ago.

Arizona Snapshot:

  • According to the Federal Housing Finance agency, national home prices reached record levels in March.  The home price index rose to 233.1.  This is up 6.1% from a year ago and compares to the 2007 peak of 226.6.  The FHFA index measures homes insured by government agencies.  This generally excludes higher priced homes.
  • The index for Arizona also increased.  It was up 7.4% to 264.1.  Yet, in Arizona, homes with government insured mortgages are still way down from the 2006 peak of 320.9.
  • In Greater Phoenix, the 1st quarter index was up 9.4% from a year earlier.  But, the index, at 288.0, was still well below the previous peak of 342.2. In Greater Tucson, the index was up 5.7% from a year ago to 234.0.  The previous peak in Tucson was 309.3.  Thus, according to this index, mainly lesser expensive homes, Greater Phoenix is still 15.8% below its’s previous peak while Tucson is still 24.3% below the 2006 record.

 

City of Mesa Launches New Brand For Falcon Field Area

Falcon District Primary

The City of Mesa Office of Economic Development has launched a new brand for the Falcon Field Economic Activity Area in northeast Mesa. The area has been designated the “Falcon District” complete with a new logo and website to promote the District as a destination for aerospace, defense, manufacturing, and technology companies.

The Falcon District is anchored by Falcon Field Airport and encompasses more than 35 square miles of retail, commercial, and industrial parks, as well as quality residential neighborhoods. Companies such as Boeing, MD Helicopters, Orbital ATK, Special Devices Inc., and NAMMO Talley have major operations in the Falcon District.

This new brand for the Falcon District will help bring local and national recognition as a vibrant advanced manufacturing hub, ideal for medical technology companies, advanced business services, and next generation aerospace and defense. We will be telling the story of the Falcon District as a very special place with a dense cluster of world-class manufacturing and technology companies, an abundant and highly-skilled workforce, and open space which offers protection from encroachment, security and certainty for long-term planning.

The branding effort was a result of recommendations detailed in the Falcon Field Economic Activity Area Strategic Plan published in September 2014. The plan contained several action items for the District including increased emphasis on business attraction, expansion, and retention activities, as well as a brand and marketing plan to promote the opportunities. During the summer of 2015, the Office of Economic Development conducted meetings, interviews, and focus groups with area employers, property owners, developers, residents, and stakeholders, which resulted in the new Falcon District brand.

The website, www.MesaFalconDistrict.com, contains information including key industries, demographics, utilities, workforce, available real estate, and much more.

 

View Mesa’s Full Fourth Quarter Economic Reporter