quarterly report fiscal year 2010-2011 3rd quarter 3rd qtr.pdfretail leads industrial/office tourism...

City of Chandler

Economic Development Division

Quarterly Report Fiscal Year 2010-2011 3rd Quarter

INDEX

Table of Contents

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

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

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

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

INDUSTRIAL/OFFICE DEVELOPMENT ....................................................... 13

TOURISM ........................................................................................................ 17

DOWNTOWN ............................................................................................... 20

Economic Development Division May 1, 2012 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 March 31, 2011 Economic Development staff combined efforts in the third quarter identified 5,797 leads and 16 prospects resulting in an estimated 506 jobs, occupying approximately 330,287 square feet of space and secured $119,487,984 in capital investments.

3rd Quarter Combined Efforts

Retail Industrial/Office Tourism Total Leads 13 31 5,753 5,797 Prospects 7 9

16

Jobs 165 341

506 Square Footage 67,965 262,322

330,287

Capital Investment

$119,487,984

$119,487,984 Retails: During the third quarter, Economic Development retail staff continues 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 reviewed, and issued.

For Q3, retail staff participated in the following activities:

Activity Location Date ICSC Southwest Idea Exchange Scottsdale, AZ January, 2011

Industrial/Office: During the third 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 Q3, industrial/office staff participated in the following activities: Activity Location Date Irish Delegation Chandler, AZ February 4 - 5, 2011

MDM Los Angeles, CA February 16 - 17, 2011


INTRODUCTION

Tourism: Tourism staff conducted the following trade and media activities for Q3: Activity Location Date Arizona PR Roundtable Arizona (Statewide) January 20, 2011 Chicago Sale Mission Chicago, IL January 25 – 28, 2011 Chicago Travel Show Chicago, IL January 29 – 30, 2011 Descubre Phoenix Golf Tournament Event Phoenix, AZ February 16 – 19, 2011

Tourism Stakeholders Meeting Chandler, AZ March 18, 2011 WACVB Tech Summit Conference Tempe, AZ March 24 – 25, 2011

Sunny AZ FAM Tour Chandler, Mesa & Tempe, AZ

March 31 – April 3, 2011

In addition to trade, media activities and travel, staff generated 5,753 leads by the end of March 31, 2011. Downtown: Downtown Redevelopment staff continues 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 255,652 citizens and approximated 95,707 housing units located in the City’s borders as of March 31, 2011. 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

68

227

495

262

50

150

250

350

450

550

650

Q1 Q2 Q3

Square Footage In Thousands

RetailOffice/Industrial


120 177 165

1085

2,037

341

0

500

1,000

1,500

2,000

2,500

Q1 Q2 Q3

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 third quarter.

Source: City of Chandler Planning Division June 2011

Population Growth

Q1 Population 236,598 236,702 236,822

Jul. Aug Sep

Q2 Population 254,988 255,119 255,294

Oct Nov Dec

Q3 Population 255,424 255,522 255,652

Jan Feb Mar

$18.0

$19.0

$20.0

$21.0

$22.0

$23.0

$24.0

Q1 Q2 Q3

Sales Tax Collected

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


ECONOMIC TRENDS

By the end of the third quarter the City of Chandler average unmeployment rate was at 7.5%, meanwhile employment rate figures released by Arizona Department of Commerce show a steady increase for this quarter.

July Aug Sep Oct Nov Dec

Q1 Q2

1st & 2nd Quarter Unemployment Rate

Arizona

Phoenix

Chandler

Source: Arizona Department of Commerce


Jan Feb Mar

Q3

3rd Quarter Unemployment Rate

Arizona

Phoenix

Chandler


ECONOMIC TRENDS

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

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Q1

Q2

Q3

Chandler's Employment Rate



RETAIL

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

Specific Q3 Retail Activities:

1. US Egg US Egg Restaurant’s menu focuses on breakfast items such as omelets, pancakes and mountain high skillets, but also includes lunch entrees such as burgers, sandwiches, soups and gourmet salads. US Egg has been in the Valley of the Sun for 26 years.

2. Rock Taco Cantina Rock Taco Cantina is the newest Mexican restaurant, bar and club to open at Chandler Fashion Center, and features more upscale Latin flare, live DJs on the weekend and an entertainment stage.

3. Crowded House Furniture Crowded House Furniture is a family owned and operated one stop shop for furniture and accessories. The pieces consist of raw woods, distressed finishes, and eco-friendly furnishings with a story to tell.

4. Extreme Air

Extreme Air is a large indoor entertainment park, which features over 30,000 square feet. of air-conditioned space for families and kids of all ages. This spectacular indoor entertainment center includes a skate park for street style skate boarding and BMX bikes, a whopping 10,000 continuous feet of trampoline, with separate dodge ball / basketball bounce areas for youth and adults. It also includes one large Velcro wall and a fully equipped arcade with video games and prizes.


Q 1 Q 2 Q 3

Retail Prospects & Leads

Prospects

Leads

RETAIL

5. Elements Therapeutic Massage Elements Therapeutic Massage views massages as a vital part of your body maintenance that decreases anxiety and stress, muscle pain, migraines and depression, while increasing circulation, alertness, immune functions and sleeping patterns.

6. BLD Restaurant BLD, which is short for Breakfast, Lunch and Dinner, offers farm-fresh, from-scratch foods served in a bright, cheery and contemporary atmosphere, BLD is the latest South Chandler dining destination by the team who brought you Cork Restaurant. Open all day, every day, this casual neighborhood hangout features oversized roll-up windows overlooking a spacious, stylish outdoor patio and a convenient drive-thru window that dispenses barista-made beverages and foods-to-go.

7. Planet Subs Planet Subs began making their bread from scratch in Kansas City in 1998. Now 13 years later with 22 corporate locations and 12 franchises, Planet Subs offers homemade sandwiches of hand sliced meats, guacamole made from scratch, and an assortment of sliced veggies.

8. The Disney Store The Disney Store is an international chain of specialty stores selling only Disney related items, many of them exclusive. The merchandise at the Disney Store includes Disney toys, electronics, and collectables.


RETAIL

Staff efforts in this quarter produced 165 new jobs and occupied 67,965 square feet of retail in the City of Chandler.

RET

AIL

NAME LOCATION Jobs S.F. 1st Quarter

QuickTrip Arizona & Queen Creek 10 5,104 Old Spaghetti Factory Loop 101 & Frye 50 10,240 Rally’s Burgers Alma School & Chandler 15 1,756 Aaron’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 Razzmatazz 54th St./ Ray 15 12,000 Chandler BBQ Alma School/Germann 5 1,202

3rd Quarter US Egg Kyrene & Chandler 20 5,747 Rock Taco Cantina Loop 101 & Frye 50 4,948 Crowded House Dobson & Germann 7 16,130 Extreme Air McQueen & Pecos 3 29,280 Elements Massage 54th St. & Ray 5 1,700 BLD Restaurant Dobson & Germann 50 4,711 Planet Subs Dobson & Germann 10 1,221 The Disney Store Loop 101 & Frye 20 4,228


120

182 165

0

20

40

60

80

100

120

140

160

180

200

Q1 Q2 Q3

Retail Jobs Created

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

67,965

Q1 Q2 Q30

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Retail Total Sqare Feet

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 Q3 Industrial/Office activities:

1. Duncan Systems Inc.

Duncan Systems Inc. has offices located in Lakeland, Florida and Chandler, Arizona. Duncan Systems offers an in-house window repair service that will rebuild your damaged windows vs. replacement with state-of-the-art methods and materials. Each location offers mobile repair, which brings this valuable service to you.

2. Blue Cross Blue Shield Blue Cross Blue Shield of Arizona offers health insurance for individuals, families and employer groups.

3. Kovach II Kovach II is a metal structural skin company that transforms individual pieces of metal utilizing various processes of forging, stamping, bending, forming, and machining, as well as welding and assembling of metal’s used to join separate parts together to create fabricated metal wall and roofing.

4. AZ Dynamics AZ Dynamics offers both competitive and recreational gymnastics and cheer programs.

Q 1 Q 2 Q 3

Industrial & Office Propects & Leads

Prospects

Leads



5. Bank of America Data Center Bank of America Data Center is in the Commercial Banks, N.E.C. industry in Chandler, Arizona. This company currently has approximately 250,000 to 300,000 employees.

6. Av-Air Inc. Av-Air Inc. in Chandler, Arizona is a private company that forged advantageous relationships with numerous airlines, repair stations, and original equipment manufacturers around the globe. Av-Air Inc. is the second largest commercial solar array in Chandler, Arizona.

7. Inyati Inyati is a division of ArmorWorks specializing in flat panel armor.

Staff efforts in this quarter produced 642 new jobs and occupied 130,859 square feet of industrial and office space in addition to a projected capital investment of $119,487,984.

IND

UST

RIAL

& O

FFIC

E

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 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



IN

DU

STRI

AL &

OFF

ICE NAME LOCATION Jobs S.F. Capital

Investment 3rd Quarter

Duncan Systems Inc. South Chandler 26 8,705 $424,100 Blue Cross Blue Shield West Chandler 20 3,643 $364,300 Kovach II South Chandler 180 62,533 $84,556,640 AZ Dynamics South Chandler 30 17,441 $692,944 Bank of America Data Center South Chandler 25 157,000 $30,000,000 Av-Air West Chandler 40 13,000 $1,950,000 Inyati West Chandler 321 9,837 $1,500,000

Q1 Q2 Q3

Capital Improvement



1,085

3,037

341

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1 Q2 Q3

Jobs Created


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 Q3 reflect gains that are more positive 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%10%20%30%40%50%60%70%80%

Q1 Q2 Q3

47% 60.6%

77.8%

Chandler Hotel Occupancy Rate


$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Q1 Q2 Q3

$75.56

$86.41 $104.27

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. Metro Phoenix Comparison Q1 Q2 Q3

Occupancy 47% 60.6% 77.8% Occupancy 44.9% 57% 73.0% Average Daily Rate $75.56 $86.41 $104.27 Chandler

Average Daily Rate $78.01 $97.29 $123.27 Metro Phoenix Revenue per available room $35.67 $52.47 $81.12

Revenue per available room $35.00 $55.46 $89.93

$0.00$10.00$20.00$30.00$40.00$50.00$60.00$70.00$80.00$90.00

Q1 Q2 Q3

$35.67 $52.47

$81.12

Chandler Hotel RevPar


TOURISM

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 5,753 new leads to the City of Chandler.


400

450

500

550

600

Q1Q2

Q3

http://www.visitchandler.com/

DOWNTOWN

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

Specific Q3 Downtown activities:

Downtown Redevelopment staff conducted research related to LEED criteria and submitted the award applications for Arizona Avenue and City Hall.

Presentation: Downtown Redevelopment staff was a presenter at the Arizona Public Works Association monthly meeting that was held in March. The topic of discussion was downtown revitalization.

Development Agreement and language: Downtown Redevelopment staff fleshed out and finalized language and exhibits for San Marcos Commons Phase II. As a result, the documents were signed on January 14, 2011 and the City of Chandler finalized the purchase of Parcels 1 and 3. Subsequently, Desert Viking will proceed with taking the plan through the PDP process within 9 months. The construction is scheduled to begin no later than September 1, 2012.

COR – Site 7: Consolidated City comments and provided to Developer. Façade Grants: Construction on Coach and Willie’s located on 1 E Boston began during the third quarter along with the processing of one façade draw.

Site 8 Parking: A parking overlay was developed and reviewed. It included a study on the impact this will have on property owners. During the third quarter this information was presented to Planning and Zoning Commission for review.

Electrical Box relocations: A power pedestal easement was developed and recorded giving the City rights to leave in place. Several meter boxes on a private building were sent out for bid in order to be relocated.

Fencing for Liquor: A code amendment was created and vetted with impacted property owners. Several design sessions were held with Latitude 8 to look at possible detached patio configurations available under the proposed new code.

ARTyard: The final version of the RFP was released on February 1, 2011 and will remain open until July 29, 2011.

Flyover Marketing Graphic: Project cancelled.


DOWNTOWN

Special Events: Event season continued in the beautiful weather. Weekly Farmer’s Markets continued and the monthly ArtWalk’s became even more successful during the third quarter. In addition, Downtown played host to the Multicultural Festival, Classic Car Show, the American Bar-B-Que festival, Mardi Gras, Ostrich Parade and the Corvette Car Show. Numerous business-sponsored events were also held such as the Italian-American Festival, St. Patrick’s Day, and Barrel tasting. Businesses also ramped up their brunch and live music offerings.

Downtown Chandler Block Party: Downtown Redevelopment staff began planning efforts for the second annual Downtown Chandler Block Party. This event will be held on Saturday, November 19, 2011.

Maintenance Activities: During the third quarter there was over $250,000 worth of maintenance projects that begun in the Downtown area, including repairs to the colonnade, fencing on City lots, and various other small projects.

Entertainment District: Downtown Redevelopment staff began the necessary work of creating an Entertainment District in the Downtown.

Reuse of Blue Peacock: Downtown Redevelopment staff continued to explore various concepts for the reuse of the purchased space and the possibility of creating a breezeway. Discussions will continue during this fiscal year.

EMSD: Downtown Redevelopment staff began the annual preparations for re-establishing the district and renewing the Downtown Chandler Community Partnership (DCCP) contract. Staff took the lead to clarify the City of Chandler’s exemptions on several parcels for the County Assessor and provided background on the District founding.

Parking: At business owners request Downtown Redevelopment staff installed 2 hour parking signs at the Site 8 City lot. Staff worked closely with Intel to facilitate parking for a large event Downtown. DCCP Signage: Downtown Redevelopment staff worked with DCCP on various proposals for the Arizona Avenue signage package.

DCCP Trash: Downtown Redevelopment staff continued to work with DCCP on various options for trash and recycling locations in the Downtown Chandler.

San Marcos Golf Resort: Downtown Redevelopment staff began working with firms doing due diligence related to the San Marcos Resort bankruptcy filing.


DOWNTOWN

Downtown Banners: Downtown Redevelopment staff evaluated the various options for the repair of the curved Downtown Chandler banners. In addition, staff managed all media inquiries regarding downtown banners concerns and/or comments.

New and Potential Tenants:

• Downtown Redevelopment staff met with Changing Hands to explore bookstore potential in the Downtown Chandler area.

• Cloud Nine Karaoke opened in Downtown Chandler. • Downtown Redevelopment staff also received twelve inquiries from interested

parties looking for available space.


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