quarterly report fiscal year 2010-2011 2nd quarter · 2015. 11. 12. · 2nd quarter combined...

City of Chandler

Economic Development Division

Quarterly Report Fiscal Year 2010-2011 2nd Quarter

INDEX

Table of Contents

INTRODUCTION .............................................................................................. 3

ECONOMIC DEVELOPMENT OUTLOOK .................................................... 5

ECONOMIC TRENDS ..................................................................................... 7

RETAIL ............................................................................................................. 9

INDUSTRIAL/OFFICE DEVELOPMENT ....................................................... 12

TOURISM ........................................................................................................ 15

DOWNTOWN ................................................................................................. 17

Economic Development Division June 1, 2011 2

INTRODUCTION

Economic development activity continued on a positive trend during the second quarter, in lieu of the year’s economic downturn. For the quarter ending December 31, 2010 Economic Development staff’s combined efforts in the second quarter identified 566 leads and 18 prospects, that resulted in an estimated 3,219 jobs, occupying approximately 647,367 square feet of space; and secured $5,066,140,000 in capital investments.

2nd Quarter Combined Efforts

Retail Industrial/Office Tourism Total Leads 9 40 517 566 Prospects 6 12

18

Jobs 182 3,037

3,219 Square Footage 152,883 494,484

647,367

Capital Investment

$5,066,140,000

$5,066,140,000

Retail: During the second quarter, Economic Development retail staff continued to work with developers, brokers, and shopping center owners on major retail developments while tracking all existing retail centers and tenants, including those projects under-construction or planned. Staff continues to work with their clients by keeping track of when the construction permits are submitted, reviewed, and issued.

Industrial/Office: During the second quarter, Industrial and Office staff attended several sales missions and prospecting trips to market Chandler’s message to a broader audience and provide insight into existing development opportunities in the City of Chandler. Sales Mission, trade shows, and prospecting trips provide staff with the chance to discern the type of data and resources the brokerage and development community needs thereby facilitating the attraction of quality stores, restaurants, companies, and recreational opportunities to Chandler. For Q2, Industrial/Office staff participated in the following activities: Activity Location Date National Business Aviation Association Trade Show/Conference

Atlanta, GA October 19-22, 2010

Arizona Town Hall Grand Canyon

Grand Canyon, Arizona November 7-11, 2010

Arizona Entrepreneurship Conference (AZEC10)

Arizona November 17, 2010


INTRODUCTION

Tourism: Tourism staff conducted the following trade and media activities during the second quarter: Activity Location Date Eastern Canada Sales Mission on Tourism

Canada October 10-15, 2010

(AOT) Arizona Media Marketplace

Arizona October 28, 2010

AOT Orchards & Vines FAM Arizona November 3 & 4, 2010 Denver Sales Mission Denver December 7-10, 2010 In addition to trade shows, media activities and travel, staff generated 517 leads by the end of December 31, 2010. Downtown: Economic Development Downtown Redevelopment staff continued to work with the merchants to collaborate in advertising and promoting their business in Historic Downtown Chandler. Staff coordinated efforts with the Downtown Chandler Community Partnership (DCCP), Arts Commission, Façade Grants, Site 8 Parking, Urban Gardening and various Special Events which is significant to Downtown Chandler fruition.

Disclaimer: Content is intended to provide general information to the public and every effort has been taken to ensure that the information is accurate. Data is submitted subject to the possibility of errors, omissions and changes, but is obtained from sources and/or formulas deemed reliable.


ECONOMIC DEVELOPMENT OUTLOOK

Economic Development focus is essential to the City of Chandler’s estimated population of 255,294 citizens and approximated 95,591 housing units located in the City’s borders as of December 31, 2010. Therefore, locating and expanding quality industrial, commercial, retail, and small business opportunities throughout the City of Chandler and Downtown Chandler are of great importance to Chandler’s future economic impact. Economic Development personnel continually update economic data, demographic and development trends, to maintain current information to better assist clients with their search for potential development opportunities. The information also aids Economic Development staff in identifying areas of opportunity: specific gaps, target retail markets, provide linkages to key census information and assist in presenting available sites.

110

153

227

494

50

100

150

200

250

300

350

400

450

500

Q1 Q2

Square Footage In Thousands

Retail

Office/Industrial

120 182

1085

3,037

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1 Q2

Jobs Created

Retail

Industrial/Office


ECONOMIC DEVELOPMENT OUTLOOK

Past, present and future vitality of the City of Chandler relies on job growth and demographic factors. With the migration of educated workers, sustainable increases in population, high education choices and a pro-business record, lays the groundwork for healthy job creation and employment opportunities during the second quarter.

Source: City of Chandler Planning Division December 2010

Population Growth

Q1 Population 236,598 236,702 236,822

Jul. Aug Sep

Q2 Population

254,988 255,119 255,294 Oct Nov Dec

$18.0

$19.0

$20.0

$21.0

$22.0

$23.0

$24.0

Q1 Q2

Sales Tax Collected

FY10-11Source: City of Chandler, Sales Tax & Licenses


ECONOMIC TRENDS

By the end of the second quarter the City of Chandler average unmeployment rate was at 7.1%, meanwhile employment rate figures released by arizona department of commerce show a steady increase for this quarter.

Source: Arizona Department of Commerce

July

August

September

October

November

December

City of Chandler Employment Rate

Source: Arizona Department of Commerce


July Aug Sep Oct Nov Dec

Q1 Q2

City of Chandler Unemployment Rate

Arizona

Phoenix

Chandler

ECONOMIC TRENDS

Employment by Occupation Data identifies and analyzes total employee counts per establishment within various industries.


RETAIL

Economic Development Retail staff located five new companies that included a restaurant, grocery/food concept, gas station, and specialty retail to the City of Chandler.

Specific Q2 Retail Activities:

1. SoZo Coffeehouse SoZo Coffeehouse coffees are hand roasted in-house. The bakery uses natural and organic ingredients to create their “made from scratch” goodies. Sozo coffee beans are being used at many coffee shops around Michigan and a grocery store. Beans are also shipped all over the United States.

2. Otaku Sushi Otaku Sushi restaurant will feature traditional Japanese/Asian Fusion flare with a modern culinary twist. You will feel equally comfortable enjoying a quick executive business lunch with a client or a romantic evening with your special someone. Otaku offers Omakase, which features extraordinary dishes created by Chef Jay himself. They also offer classes at the Otaku Academy, which allow their guests to learn the art of making sushi, while sampling many dishes they otherwise may never have tried. Guests will also enjoy Chef Jay's authentic Korean and Chinese influence in the variety of hot and cold dishes prepared in the Otaku Kitchen.

3. Target The first Target store opened in Roseville, Minnesota, in 1962. Its trendy merchandise at affordable prices launched a new era in a discount retailing store that is easy to shop, attractive and always clean. It served as the prototype for every Target store opened since then, and it changed how consumers think about discount shopping.

Q 1 Q 2

Retail

Prospects

Leads


RETAIL

Today, Target operates nearly 1,750 stores in 49 states, including more than 240 Super-Target stores that include an upscale grocery shopping experience. In addition to the photo processing centers, pharmacies and Food Avenue restaurants found in almost every Target, Super Target stores include in-store bakery, deli, meat, and produce sections.

4. Razmataz Since first opening its doors in Phoenix, Arizona in 1996, Razmataz has offered ever-changing treasures. Armoires, bedroom suites, dining groups, office, wall art and accent pieces all offered in traditional and rustic styles. Razmataz’s vast array of furnishings is imported from Indonesia, Turkey, Morocco, China, Mexico, India, and Italy. Razmataz’s concept is similar to warehouse showroom (but specializing in home furnishings and décor), targeting high-end clients who want luxurious items that are reasonably priced. By buying in massive quantities from the manufacturers, Razmataz can pass along the savings to their customers at near wholesale prices.

5. Chandler BBQ Chandler BBQ is a southern style slow smoked BBQ restaurant that serves mesquite flavored juicy and tender meats. The cuisine appeals to all ages from young to old. Chandler BBQ meat is tender, smoky, and pink in color because it is slow cooked in a closed pit that holds the smoke, giving the meat a distinctive flavor.

Staff efforts in this quarter produced 182 new jobs and occupied 3,037 square feet of retail in the City of Chandler.

RETA

IL

NAME LOCATION Jobs S.F 1st Quarter

QuickTrip Arizona & Queen Creek 10 5,104 Old Spagetti Factory Loop 101 & Frye 50 10,240 Rally’s Burgers Alma School & Chandler 15 1,756 Aron’s Gilbert & Germann 10 8,480 Swapsmart Arizona & Warner 10 66,370

Good Food Market Alma School & Chandler Heights 25 18,102

2nd Quarter Sozo Coffee Alma School/Warner 2 1,000 Otaku Sushi Gilbert/Ryan 10 3,681 Target Arizona/Ocotillo 150 135,000 Razmataz 54th St./ Ray 15 12,000 Chandler BBQ Alma School/Germann 5 1,202


RETAIL

Staff continues to work with the Chandler Local Bites website, which is a guide to unique and local Chandler eateries & drinks for residents looking for great new or already established places to eat or take visitors. Additional information about the site can be obtained on the website, www.Chandlerlocalbites.com or by visiting select locations, local restaurants, hotels, City facilities, and visitor’s bureaus.

110,052

152,883

Q 1 Q 20

20,00040,00060,00080,000

100,000120,000140,000160,000180,000

Total Sqare Feet


120

182

0

20

40

60

80

100

120

140

160

180

200

Q 1 Q 2

Jobs Created

http://www.chandlerlocalbites.com/

INDUSTRIAL/OFFICE DEVELOPMENT

Economic Development Industrial and Office staff efforts located eight new companies to the City of Chandler with a wide range of office and industrial retention and expansion sites.

Specific Q2 Industrial/Office Activities:

1. Sierra Precision Sierra Precision Optics has just one priority: provide the utmost in optics quality and performance, coupled with superlative service that goes the extra mile. They take pride in their ability to tackle a full range of optics challenges from simple to complex, with quantities small to large. Sierra Precision offers fabrication services for a full spectrum of products including Filters, Windows, Beam Splitters, Prisms, Cylindrical Lenses, Laser Flow Tubes, Panels, Mirrors, Wedges, Spherical Lenses, UV, Visible, IR Laser Components and Custom Shaped Optics.

2. EBay/PayPal With more than 94 million active users globally, eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. PayPal has made it possible for individuals and businesses to pay and be paid online across different locations, currencies, and languages. PayPal responded to the eBay community, which had quickly adopted PayPal as its preferred payment method. eBay Inc. acquired the company in 2002. Since then, PayPal's customer base has grown, both on eBay and across e-commerce.

Q 1 Q 2

Industrial/Office

Prospects

Leads



3. Chandler Regional Medical Center (Cardiac Cath Lab) Expansion The Cardiac Catheterization Laboratory (cath lab) at Chandler Regional Medical Center is a specialized area dedicated to the diagnosis and treatment of coronary artery disease. Chandler Regional's cardiac cath lab has grown exponentially since its inception in 2001, from treating 147 patients in its first year to nearly 3,500 patients in 2010.

4. Digital Realty Trust (expansion) Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing secure, reliable, and cost effective datacenter facilities. Digital Realty Trust's customers include domestic and international companies across multiple industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services.

5. Intel (expansion) Intel’s Chandler facility located at the Price Corridor’s $5 billion expansion project will go towards building a state of the art manufacturing plant that will be one of the biggest construction projects in the world and a turning point towards changing the economy. Intel’s expansion will create an estimated 1,000 new positions in an advanced facility, which will have a big impact on consumers who will get more computer power for a lot less money, along with internet connectivity anywhere, anytime, while at the same time allowing everything from servers to cell phones to be smaller and faster than ever.

Staff efforts in this quarter produced 3,037 new jobs and occupied 494,484 square feet of industrial and office space, in addition to a projected capital investment of $5,066,140,000.

Offi

ce &

Indu

stri

al

NAME LOCATION Jobs S.F Capital Investment

1st Quarter Kimball Concepts North Chandler 25 10,000 $200,000

Academy Mortgage Airpark Area 55 10,648 $648,600

Gangplank and Affiliated Anchors Downtown 35 6,500 $450,000

Unisource WorldWide Airpark Area 55 23,000 $750,000

EDMC Price Corridor 750 90,859 $5,735,000

International Rectifier Price Corridor 80 26,000 $900,000

Arizona Nutritional Supplements (retention/expansion) North Chandler 75 50,000 $50,000

BMWC Constructors Inc. North Chandler 10 10,000 $300,000



2nd Quarter

Sierra Presicion West Chandler 5 5,000 $500,000

ebay/PayPal Price Corridor 2,000 188,000 $40,640,000

Chandler Regional Medical Center Expansion (Cardiac Cath Lab) Price Corridor 25 60,000 $25,000,000

Digital Realty Trust (Expansion) Price Corridor 7 240,000 $0

Intel (Expansion) Price Corridor 1,000 1,484 $5,000,000,000

227,007

494,484

Q 1 Q 20

100,000

200,000

300,000

400,000

500,000

600,000

Total Sqare Feet


1,085

3,037

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q 1 Q 2

Jobs Created

Q 1 Q 2

Capital Investment

TOURISM

Economic Development Tourism staff facilitates a multi-layered tourism-marketing program that goes beyond tradeshows, tours, and sales missions. Chandler’s tourism industry measurements for Q2 reflect more positive gains for the hotel occupancy, average daily room rate (ADR), and revenue per available room (RevPar) markets as reported by Smith Travel Research, Inc. and represented in the charts below:

0%

20%

40%

60%

80%

Q1 Q2

47% 60.6%

Chandler Hotel Occupancy Rate

$70.00

$75.00

$80.00

$85.00

$90.00

Q1 Q2

$75.56

$86.41

Chandler Hotel ADR


TOURISM

In comparison to Metro Phoenix, Chandler’s hotel occupancy rate was higher, but the ADR & RevPar for Q2 was slightly lower. Q1 Q2 Occupancy 47% 60.6% Occupancy 44.9% 57% Average Daily Rate $75.56 86.41 Average Daily Rate $78.01 97.29 Revenue per available room $35.67 $52.47 Revenue per available room $35.00 $55.46 Tourism staff also maintains the tourism website, www.visitchandler.com that is featured in each advertisement, brochure, and press release and it is utilized at trade shows. Tourism staff efforts to date generated a combined 517 new leads to the City of Chandler.

$0.00$10.00$20.00$30.00$40.00$50.00$60.00

Q1 Q2

$35.67 $52.47

Chandler Hotel RevPar


http://www.visitchandler.com/

DOWNTOWN

Economic Development Downtown staff co-hosted the first annual Downtown Chandler Block Party on Saturday, November 20th. Downtown staff assisted in Arizona Avenue dedication activities, marketing and PR activities and hosted the VIP area. The event resulted in two TV appearances, over 20 mentions in articles, over 120 vendors, overwhelming demand for City Hall tours, 8 hours of programming on the community stage and estimated attendance of 10,000.

Finalization of South Arizona Avenue:

1. Final paving and intersection closures coordinated and communicated.

2. Installation of art elements, which included:

o Tile seat walls and tables o Wrought iron park fence for special events o Lighted art pads for future installations by Arts Commission.

South Arizona Avenue was featured in three articles on specific art pieces in addition to highlighting the improvements that occurred in Downtown Chandler during the third quarter.

1. Specialty signage introduced new logo and theming installed in the Park, on street signs, and banners throughout the District. Many comments have been received indicating that these elements have helped people identify that Downtown runs from Frye Road to Chandler Boulevard, which was one of the objectives of the project.

2. Site furniture was installed to be inviting and create gathering and conversation areas, including placement of new bike racks, new and refurbished benches, and tables.

3. Modifications of some landscaping plans were made to better relate to neighboring buildings or amenities.

4. At the end of the project, no businesses had been lost and in fact, four new shops opened in the Downtown (Sibley’s, One Wing Boutique, Yoli’s Café, Calvin Peterson Jewelry), with increased calls from others looking for space. This is absolutely amazing in the midst of the Great Recession, and speaks to the concept that people relate to a sense of place and walkability.

DCCP Audit Review: Submitted in November for prior fiscal year operations of District. The review was found to be in good standing.


DOWNTOWN

The role of Downtown Redevelopment staff was significant, in the various projects, activities and events outlined below throughout the first quarter.

Specific Q1 Downtown Activities:

Awards and Presentations:

• Won Arizona Planning Association Making Arizona Completive in the 21st Century (MAC21) award for Arizona Avenue Area Plan and Improvements.

• Downtown Redevelopment staffs in conjunction with Planning staff were presenters at the Arizona Planning Association on how to create and implement an Area plan.

Façade Grants

Downtown Redevelopment staff reviewed three façade grant applications, provided modifications, identified policy issues and forwarded for to City Management for further review and decision making.

DCCP:

• Trash – Trash pilot service continues.

• EMSD – DCCP contract was executed and all documents provided to the County Assessor.

• Signage – Worked with DCCP on various proposals for the AZ Ave signage package. DCCP Executive Committee finalizing their counterproposal.

New and Potential Tenants:

• Downtown Redevelopment staff spoke with 8 potential tenants seeking retail, restaurant or office spaces in the downtown are.

• In Q1, Downtown Redevelopment staffs had one new tenant open for business. The new tenant “Simply Klassic Interiors” is a complete home and decor retail store, offering items such as small gifts, jewelry, lighting, accessories, rugs, and large furniture pieces.


DOWNTOWN

Additional Updates:

• ARTyard – RFP response reviewed and discussions opened with applicant.

• Maintenance Activities - All beam and joist repairs were completed in Q1. Additionally, the Colonnade received a new reroof in Q1.

• Reuse of Blue Peacock - The construction to bring the building up to code brought about several options which were presented to City management for further review and direction.

• San Marcos Golf Resort - Continued working with firms doing due diligence related to the San Marcos Resort bankruptcy filing.

• NW Quadrant Analysis - Selected by Urban Land Institute to provide an expert advisory panel to that will offer analysis to be used in developing a more detailed plan for the area outlined for future growth.

• Oregon Colonnade - Work on the Oregon Colonnade (SE corner of Boston and Oregon) began. The estimated completion time frame is scheduled for mid-to-late November, 2011.

• Website Revision – Staff continues to work on re-vamping Economic Development Down Town web pages.


quarterly report fiscal year 2010-2011 2nd quarter · 2015. 11. 12. · 2nd quarter combined...

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