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Agenda 09/10/2013 Item #11C 9/10/2013 11.C. EXECUTIVE SUMMARY Recommendation to approve the Office of Business and Economic Development's proposed FY 2014 Business Plan. OBJECTIVE: That the Board of County Commissioners (Board) approves the Office of Business and Economic Development's(Office)proposed FY 2014 Business Plan. CONSIDERATIONS: Still in its first year since creation, the Office has worked toward achieving the goals and objectives set out by the Board and County Manager upon its inception. As part of making economic development a high priority in Collier County, the following Business Plan for immediate implementation is submitted. The proposed Business Plan highlights the Office's proposed structure, including key partnerships between the Office and other groups that will assist in the development of Collier County's economy. Such partnerships will exist at the local, regional, and state levels. Additionally, the Business Plan describes the anticipated roles and responsibilities of the Office, local partners,and regional partners. The Business Plan also notes the tools the Office will use to achieve its goals. Tools that will be utilized include developing a strategic plan, providing regulatory assistance, financial incentives, a sites database, ensuring sufficient suitable land for sites, marketing strategies, business recruitment and retention programs, international trade, and implementing a business incubator/accelerator. Finally, the Business Plan outlines the outcomes that the Office hopes to achieve over the course of FY 2014, including desired economic indicators that the Office will use to define success. Such indicators include employment growth,net earnings, unemployment rate, committed jobs, and other such indicators. Additionally,the Business Plan outlines other outcomes including maintaining and improving a business- friendly permitting process and regulatory environment, increasing organizational capacity, and achieving community support. The Business Plan includes a six-month work plan that sets out the tasks and timing to fulfill these efforts. FISCAL IMPACT:None. GROWTH MANAGEMENT IMPACT:None. LEGAL CONSIDERATIONS: This item was reviewed by the County Attorney, raises no legal issues, and requires majority vote for approval. -JAK RECOMMENDATION: That the Board approves the Office's proposed FY 2014 Business Plan. Prepared by: Logan Smith,Economic Research Analyst,Office of Business &Economic Development Attachments: Proposed FY 2014 Draft Business Plan Packet Page-161- 9/10/2013 11.C. COLLIER COUNTY Board of County Commissioners Item Number: 11.11.C. Item Summary: Recommendation to approve the Office of Business and Economic Development's proposed FY 2014 Business Plan. (Bruce Register, Business and Economic Development Director) Meeting Date: 9/10/2013 Prepared By Approved By Name: RegisterBruce Date: 8/29/2013 4:50:19 PM • Name:KlatzkowJeff Title: County Attorney Date: 8/30/2013 8:37:42 AM Name:IsacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Date: 8/30/2013 8:38:28 AM Name: OchsLeo Title: County Manager Date: 8/30/2013 2:08:36 PM Packet Page-162- 9/10/2013 11.C. ci:11# er County Collier County Office of Business and Economic Development FY 2014 Business Plan Packet Page-163- �. .,z.w ,...•.4tiiiffiYiitl7 «::e+amaxuwbau. . 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Contents Table of Contents 2 II. Introduction 3 III. Mission Statement 4 IV. Structure 5 a. Internal Team 5 b. Local Partnership .,.5 c. Regional Approach 6 d. State Partnership 6 e. Roles and Responsibilities Matrix ...7 V. Tools 8 a. Strategic Plan 8 b. Incentives 8 c. Improvement of Business Climate 9 d. Sites Database and Suitable Land Determination 9 e. Business Retention Program 10 f. Business Recruitment Program 10 g. International Trade 10 h. Marketing Efforts... 10 i. Incubator/Accelerator 11 VI. Outcomes 12 a. Economic Indicators 12 b. Regulatory Reform and Permitting 12 c. Organizational Capacity 13 d. Consensus and Community Support ..13 VII. Six Month Work Plan 14 2 Packet Page-164- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Introduction Still in its first year since creation, the Office has worked toward achieving the goals and objectives set out by the Board of County Commissioners and County Manager upon its inception. As part of making economic development a high priority in Collier County, the following Business Plan for immediate implementation is submitted. The proposed Business Plan highlights the Office's proposed structure, including key partnerships between the Office and other groups that will assist in the development of Collier County's economy. Such partnerships will exist at the local, regional, and state levels. Additionally, the Business Plan describes the anticipated roles and responsibilities of the Office, local partners, and regional partners. The Business Plan also notes the tools the Office will use to achieve its goals. Tools that will be utilized include developing a strategic plan, providing regulatory assistance, financial incentives, a sites database, ensuring sufficient suitable land for sites, marketing strategies, business recruitment and retention programs, international trade, and implementing a business incubator/accelerator. Finally,the Business Plan outlines the outcomes that the Office hopes to achieve over the course of FY 2014, including desired economic indicators that the Office will use to define success. Such indicators include employment growth, net earnings, unemployment rate, committed jobs, and other such indicators. Additionally, the Business Plan outlines other outcomes including achieving a business-friendly permitting process and regulatory environment, increasing organizational capacity, and achieving community support. The Business Plan includes a six-month work plan that sets out the tasks and timing to fulfill these efforts. 3 Packet Page-165- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Mission Statement Implement a successful program of economic policies, strategies, and incentive programs that institutionalize a business-friendly environment through delivery of world-class customer service. 4 Packet Page-166- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Structure An important aspect of any successful economic development approach lies in the organizational structures developed to facilitate implementation. This section will highlight the institutional structures being developed to implement a comprehensive Collier County economic development approach. Internal Team The creation of the Collier County Office of Business and Economic Development (Office)was unanimously approved on June 26,2012. The Office was given the task of improving Collier County's competitiveness and business climate through a combination of business attraction,retention, expansion, and other economic development services. Since the Office's creation, staff has worked to build institutional capacity by completing internal staffing needs. The Office's staff is composed of a Director, an Economic Research Analyst, and an Administrative Assistant. Position Roles and Functions Director Provides direction and oversight of Office; Implements BCC & County Manager's long range planning and direction of economic development; Develops plans,programs and project initiatives; Represents County to local businesses, community groups, and general public; Works across County departments to coordinate economic development activities. Economic Research Analyst Performs research, data collection, and economic statistical and demographic analysis;Responds to information requests; Provides custom research for economic development initiatives and policy; Plans, develops, and organizes presentations; Develops marketing materials; Represents department in meetings; Participates in development and implementation of department goals, objectives, and policies. Administrative Assistant Performs a variety of administrative duties including preparing/processing budget,purchasing,payroll, and accounting documents; Serves as liaison between department and support services departments; Reviews documents and summaries; Performs data entry; Maintains records and files; Provides assistance and information to internal and external callers and visitors. Local Partnership The Office is actively building partnerships with community groups,particularly with the Naples Area Chamber of Commerce,to facilitate the creation of a private,non-profit partnership 5 Packet Page-167- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan organization with a structural design guided by a division of labor. A clear separation of roles and functions between the partnership entities serves to reconcile public needs with business interests in the promotion of Collier County's future prosperity, allowing the public sector and private sector to serve roles best suited to their unique attributes. The partnership will ideally facilitate economic development by leading local efforts in the area of business attraction through a strategy built from community consensus, utilizing a targeted marketing program that presents Collier County as a business-friendly environment. This effort has achieved a conceptual accord and details for implementation are in progress. Additional important strategic partners include Southwest Florida Works (workforce board), Collier District Schools, Edison State College, Hodges University, University of Miami's Bascom Palmer Eye Institute, Florida Gulf Coast University, Southwest Florida Regional Planning Council.,Naples Municipal Airport, Collier County Aviation Authority, Southwest Florida International Airport, S.C.O.R.E., and the FGCU Small Business Development Center. Regional Approach In addition to efforts to build a local partnership focused on Collier County's economic development,the Office is interested in assisting existing efforts to create a regionally-focused economic development partnership centered on promoting Southwest Florida as a premier region for economic development. The regional partnership will ideally work cooperatively with the five Southwest Florida counties, as well as Florida Gulf Coast University, other regional educational institutions, and other private, non-profit organizations. In addition to promoting the Southwest Florida brand, the envisioned partnership will also serve as a key resource for data and information in promotion of the region and its communities. State Partnership It is vitally important for the Office to develop and maintain solid relationships with the State of Florida economic development partners at Enterprise Florida and the Department of Economic Opportunity. The Office is seeking to establish strong working relationships with key individuals in both agencies in order to maximize the effectiveness of local economic development efforts. As the local economic development partnership expands,the Enterprise Florida and Department of Economic Opportunity relationships are expected to broaden and include the entire local economic development team. It is envisioned that after completion,the Office, local partnership, and regional partnership will assume the following roles: 6 Packet Page-168- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Roles and Responsibilities OP* I iitit\ V■ ill V■ Not 1.Develop and budget for 1.Develop public policy. marketing and outreach aro• ams. 2.Manage projects with 2. Focus on business association- collaboration from •artners. related activity. Local Private,Non-profit 3. Direct retention efforts and 3. Participate in political or facilitate artnershi s. electioneerin• activities. 4.Raise private funds for the economic development of Collier Coun . AO% 4**, Ank 7 Packet Page-169- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Tools In order to ensure the Office's success, it is important for the Office to identify and develop key tools to implement a course of action for economic development. This section will identify these key tools that will be utilized by the Office in its efforts. Strategic Plan The Office's efforts will be guided in part by a 5-year strategic plan, coordinated with local partners to assess the local economy. The plan will seek to assist the Office and partners in better understanding the strengths, weaknesses, opportunities, and threats facing Collier County's economy. The strategic direction outlined by the plan will be driven by data and quantitative analysis, as well as community inputs and other qualitative factors. Using a full range of inputs,the strategic plan will highlight relevant strategies for the Office to pursue in developing Collier County's economy and guiding its economic future. Draft completion anticipated for January 1,2014. Incentives Contingent upon BCC directives, financial incentives are anticipated to be a tool utilized by the Office and partners to boost Collier County's competitiveness and induce new business activity. Financial incentives will be approached carefully and thoughtfully, keeping in mind the principles of equity and efficacy in the development of and participation in any financial incentive program. The Office is committed to partnering with the State of Florida in its financial incentive programs, including: • Qualified Target Industry Tax Refund Program (QTI); • Brownfield Redevelopment Bonus; • Economic Development Transportation Fund; • Qualified Defense and Space Contractor Tax Refund Program; and • Other state-appropriated financial incentives. Additionally, the Office is proposing locally-originated financial incentive programs contingent on the policy direction of the Board of County Commissioners. The Office's proposed incentives are described below: 1. Basic Industry Growth Incentive Program: A basic grant of$1,500 per job for projects creating at least 10 jobs within 12 months if the business is in a Targeted Industry and wages meet or exceed the Collier County average for that industry. An additional $500 per job bonus is available for businesses demonstrating energy efficiency, resource conservation, or environmental sustainability in the firm's operating process or products. 8 Packet Page-170- 9/10/2013 11.C. Office of Business and Economic Development—FY 2014 Business Plan 2. Participation in State of Florida's Qualified Target Industry Tax Refund Program: Perhaps the State's most important financial incentive, QTI offers businesses in designated Targeted Industries an award of$3,000 per new job, or$6,000 per new job located in an Enterprise Zone. Businesses are eligible for certain bonuses, including a $1,000 per job bonus if it pays over$150%of the average local wage, and a$2,000 per job bonus if over 200%. For high-impact industries, as defined by Enterprise Florida, an additional bonus of$2,000 per job is available. Local governments must contribute at least 20%of the financial incentive as a match. 3. Advanced Long-term Productivity Strategy Incentive Program (ALPS): The ALPS program is designed to target extraordinarily high-value projects by augmenting the QTI program. This program is divided into two"tiers." Tier One offers businesses that create at least 25 new jobs with wages exceeding 150%of average county wages an incentive equal to 1.000% of actual payroll for each of four years. Tier Two offers businesses that create at least 25 new jobs with wages exceeding 200%of average county wages an incentive of 1.063%of actual payroll for each of four years. Participants must adhere to all QTI requirements as well as additional Collier County requirements. Improvement of Business Climate The Office will continually work to improve Collier County's business climate through several facets, including providing regulatory assistance and regulatory reform. The Office will serve as a liaison for the business community by providing assistance to economic development projects in navigating the regulatory process. The Office is committed to assisting businesses by working with all County and state agencies to streamline and expedite the permitting, zoning, and other development regulatory processes. The Office is committed to an on-going effort to monitor input from business and community partners to improve Collier County's regulatory process through collaboration with staff in other County departments. Regulatory reform should be an on-going process, with an ultimate goal of improving Collier County's competitiveness and overall business climate. Sites Database and Suitable Land Determination The Office will leverage a variety of resources,ranging from web-based online tools and databases,to staff in other County departments to identify suitable sites in Collier County for future economic development projects. In addition to ensuring adequate and appropriate land and sites for economic development,the Office and its partners will develop and implement a customer-friendly online sites database that will allow prospective businesses to easily identify and view information on available sites in real time. In addition,the Office will list the County's Brownfields, Enterprise Zones, and Foreign Trade Zones. 9 Packet Page-171- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan Business Retention Program In today's economic climate, Collier County must be mindful of retaining solid performing companies and their quality jobs in the community. The Office will work with partners to provide a retention program aimed at assisting existing businesses and enabling them to grow and prosper. Activities will include focused research,targeted business visitation aimed at identifying strengths and needs of existing businesses, and other services with the goal in mind of protecting and promoting Collier-based businesses. The business retention program will be further refined upon the Office's formalizing a locally-based partnership, which will assist in retention efforts. Business Recruitment Program A major tool for the Office to achieve its mission will be a successful business recruitment program. Working within the framework of proposed partnerships at the local and regional level, as well as with Enterprise Florida,the Office aims to successfully recruit economic development projects to Collier County through a combination of marketing, incentives, regulatory assistance and reform, customer contacts, and other policies. The efficacy of this tool will be enhanced further upon executing and implementing an agreement creating a local public-private partnership. International Trade The Office will work to establish international foreign-direct investment, particularly with countries with mutual business interest identified by key stakeholders, while maintaining close relations with Enterprise Florida's International Division. The Office will also work with international site consultants, embassies, and investment groups who may be able to influence international companies to consider Collier County as an area for their U.S. operations. Additionally,the Office will explore, intensify, and promote relationships with existing foreign related and/or owned firms in Collier County. Marketing Efforts The Office will collaborate and partner to develop effective marketing approaches such as: Attending conferences and trade shows; Contacting consultants and prospects; Participating in professional and industry activities; and Developing collateral materials and an Office website to convey key information about Collier County's superior business climate. Such marketing products will contain information on the County's demographics, services, quality of life, and other important business advantages. The Office will develop marketing products in coordination with partners. Marketing products to facilitate the above activities will include: • Updated website o Branding—Collier County's niche 10 Packet Page-172- 9/10/2013 11.C. Office of Business and Economic Development—FY 2014 Business Plan o Sites database o Business intelligence(demographics, employment data, and economic indicators) o Electronic newsletter& social media • Information sheets for prospective businesses o Outbound recruiting—Attraction, retention, expansion o Inbound assistance packets -Local • Business resources for current Collier County businesses Incubator/Accelerator The Office is working with other community leaders and partners to initiate a technology business incubator/accelerator to the urban area of Collier County. The Office is currently working with an outside consultant with a high degree of specialization in the area of business incubators to develop a proposal for the incubator/accelerator's essential needs and functions. The incubator/accelerator will serve as a magnet for early and start-up stage companies to collaborate in a creative environment of support and assistance. The planned incubator/accelerator is envisioned as a hub for domestic technology startups as well as foreign- direct investment, allowing international start-ups to link with Collier County and Southwest Florida. This space left intentionally blank 11 Packet Page-173- 9/10/2013 11.C. Office of Business and Economic Development—FY 2014 Business Plan Outcomes The Office will quantify inputs and measure its success based on several outcomes. It is critical that quantifiable data is tracked for performance assessment. The Office recommends establishing strategic goals and objectives that can be directly tied to performance metrics of both long term growth and operational (service delivery) inputs and outputs. Long term strategic metrics will focus on employment growth,net earnings growth, gross county productivity growth rate, unemployment rate, average wages and growth in sales tax and ad valorem revenue. Operational work inputs and outputs would include the numbers of contacts, actively managed projects,number&percentage of prospects making a commitment, average wage and job numbers of prospects committed and the percentage of total county job growth attributed to economic development activity. Economic Indicators As a newly-formed department,the Office will set realistic yet ambitious target levels of performance for FY 2014. Presented below is a summary of FY 2014 targets and the expected level of difficulty in achieving each. Indicator FY 2014 Target Level of Action to Achieve Employment Growth(#) Highest among similarly Ambitious populated counties Net Earnings growth rate 5%above state average Aggressive Gross County Product growth 5%above state average Aggressive rate Unemployment Rate 1 point below state average Ambitious Gains in Average Wages 3-5% Ambitious Average Annual Sales Tax 5-10% Ambitious Growth Property Value Growth 3%over state average growth Ambitious Number of Corporate Contacts 40 Aggressive Number of actively managed 20 Aggressive projects Percentage of prospects making a 35% Aggressive commitment Committed Jobs 5%growth above baseline Aggressive Percent of county job growth 20% Aggressive attributable to Office's efforts Regulatory Reform and Permitting Maintaining and improving a streamlined, business-friendly permitting process and regulatory environment is a qualitative measure of high importance to the County and the Office. This objective will be measured with quantitative metrics such as reducing permitting times,the number of compliance issues, and duplicative paperwork requirements. The Office will 12 Packet Page-174- 9/10/2013 11 .C. Office of Business and Economic Development—FY 2014 Business Plan determine the effectiveness of this outcome by reviewing the pertinent data as well as interfacing with clients and prospects to determine the level of satisfaction with the County's efforts to expedite its regulatory and permitting processes. Below is a summary of anticipated results as determined by clients as they move through the permitting and regulatory processes. Indicator Desired Result Process familiarity Consistent permitting experiences Time from submittal to Exceeding expectations approval Customer service Excellent Organizational Capacity Attaining a high degree of organizational capacity remains a key output to be achieved during FY 2014. As a new department,the Office has built an internal team focused on functions matched to the public component of a public/private partnership. Moving forward,the Office will work to improve organizational capacity by continuing to forge the partnerships needed to implement Collier County's economic development strategy. Like many outcomes desired by the Office, efficient service delivery by the organization will be viewed as an on-going process through FY 2014 as partnerships are finalized and staff refines its roles and functions. Amok Consensus and Community Support An important gauge of the Office's general effectiveness will be the level of community support garnered. While this output is indirect and imprecise to measure,the Office strives to receive a high degree of community support by actively engaging a wide array of community stakeholders by being present at a variety of events and meetings. 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