2012Economic DevelopmentReport

Economic DevelopmentCity of Hamilton

4%

6%

8%

10%

12% U.S.OhioHamilton

20122011201020092008200720062005

2012 Year In Review

10.9%

5.7%

9.8%9.3%

4.6%

8.6%

Unemployment Trends: Annual Rate 2005-2012

The Economic Development Department’s mission is to foster economic development activities that retain and create jobs, increase the tax base, and improve the sustainability and quality of life for the citizens of Hamilton. As the national and world economies have changed, so too has the role of the Economic Development Department. Economic Development has become defined not only as business retention, expansion, and attraction, but also those areas that enhance quality of life for a commu-nity’s businesses and residents.Despite the challenges of the current economic climate, Hamilton experienced significant economic development successes in 2012. The following is a review of the previous year and has two major objectives: 1) Communicate the economic development activities that occurred in 2012. 2) Celebrate the progress that has been made to implement the City’s strategic plan.

Economic Development is no longer just the expressed mission of one department, but instead, the culmination of efforts made by all City departments, elected officials, community organizations, business community, and other stakeholders that strive to make Hamilton a great place to work, live, and play.

8.1%

7.2%

2012 Business Activities

90

61

133

Prospect Inquiries

Response to Inquiries

Active Prospects

New Businesses

30%

65%

Increase in Prospect Inquiries

Increase in Responses to Inquiries

New Jobs Createdby New Businesses*

*Estimated during project development and adjusted as more information is known

65

100maximum

minimum

Business Creation

Business Prospects Change: 2011 - 2012

The 65% increase in responses suggests that

better-suited projects are contacting the City

1.7% decrease in Hamilton’s

unemployment rate ‘11-’12

The City’s Economic Development Department experienced a considerable increase in the number of inquiries it received from business prospects in 2012. The department’s staff received 90 prospect leads from companies seeking information to assist them in their decision to either expand or relocate their operations. Of those leads, the City was able to respond to 61 (67%) of the inquiries with information that met their specific criteria. The primary sources of prospect leads include JobsOhio, the Cincinnati Chamber of Commerce, real estate professionals, and the various proactive strategies conducted by the City’s Economic Development Department.

“The decrease in unemployment can be directly attributed to a number of expan-sions/relocations of new businesses to the City of Hamilton, including Sensus, Matan-dy Steel & Metal Products, JacksonLea, Tippman/Interstate Warehousing, Thyssen-Krupp, Butler County Imaging and Sleep Centers, KaiVac Cleaning Systems, and United Performance Metals.”

- Cassidy Turley Real Estate Services, 4th Quarter 2012 Hamilton, OH

Unemployment in Hamilton dropped to

7.0% by Dec. 2012 and is decreasing faster than

the U.S. average

1

True West Coffee was the first small business highlighted in the Small Business Series

500recipients

50+articles

20projects

Print & Video

Business Retention & ExpansionBusiness retention and expansion are foundational components of the City’s economic development efforts. Through retention visits, the Economic Development staff, City officials, and partner organizations build relationships with Hamilton’s employers, working with them on a wide variety of issues to strengthen their operations. On average, there is a business retention visit with a Hamilton company every two weeks. Throughout the year, the Economic Development staff collaborates with other City departments, such as Community Development, Underground Utilities, and Electric, to assist companies on a variety of needs.

All of these efforts are aimed at providing the existing business community support and assistance. While the Economic Development Department does not measure direct impact of retention efforts, we feel the City plays an important role in ensuring Hamilton is a great place to do business.

Marketing & Public RelationsIn 2012, the Economic Development Department made an effort to communicate positive business activity occurring in Hamil-ton and to market available properties to prospective companies. Key successes include:

Launched e-Newsletter in 2012, reaching 500 people in the business community in Hamilton and beyond

Created the Initiative Update, which covers over 20 projects within Hamilton, and sharing it with elected officials, real estate professionals, prospects, and residents

Developed marketing material for available properties and tailored each for individual prospect’s needs

1 front-page article in the Cincinnati Enquirer about Downtown Hamilton’s revitalization1 featured article in the Cincinnati Business Courier profiling Jody Gunderson, Economic Development Director50 positive Economic Development stories in the Hamilton JournalNews2 advertisements in the Cincinnati Business Courier highlighting Downtown investment and CORE Fund

Collaborated with TvHamilton to produce a Small Business Highlight video series (to be released in early 2013)

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Recognizing the importance that small businesses play in the local economy and valuing the quality of life they add to our community, the Economic Development Department has made small business development a priority. 2012 was the first full year the City had a Business Development Team, which acts as the liaison between the City and businesses, making it easier to invest in Hamilton. The creation of Hamilton’s Business Development Team underscores the City’s commitment to streamlining the development process and fostering a growing business community. This team of devoted leaders and officials has facilitated increased investment in our community by creating a customer-focused approach to dealing with new businesses and existing business expansions.

Small Business Development

2012 Small Business Prospects

157

573430

Project Inquiries

Qualifying Projects

Prospects

New Businesses

52.6% of qualifying

projects became new small business-

es in 2012

West Side • Hamilton Station Development (Hot Head Burritos, Marco’s Pizza, Verizon, Jimmy Johns)

Downtown • Jelli’s Fudgery

Lindenwald •

Sweden Crème

Route 4 • Pease Warehouse (Relocation) • Subway

German Village • The Music Stand

Main St. • 513 Fix My PC• Bella Vita Photography

East Hamilton •

Three Leaf

• Pappa Luigi’s• Ohio Lunch (Re-Opening)

Canvas and Cupcakes

Riverside RetroAesthetics

Trenton Tactical

••••

Examples of 2012 Business Development Team Successes

The Grand Re-Opening of Pease Warehouse in Route 4. Photo courtesy of Greg Lynch, Hamilton Journal News

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Address & Size

Former Use CORF Grant

Spent in 2012

Progress Proposed New Use

845 East Avenue, 7 Acres

Former Estate Stove Company

$774,095 - Contractor chosenProject Kick-Off meeting held in December 2012Anticipated to start demolition early 2013

The City has reached an agreement with a developer to construct a 38,500 square foot light manufacturing/warehouse facility

1550 Grand, 7 Acres

Former location of Marcell’s Used Auto Parts

$1,932,527 $234,000 Demolition completeSoil testing phase

Groundwater treatment design under EPA review

It is anticipated that upon completion of the demolition and remediation project, the property will be redeveloped into a commercial or retail/mixed-use site

550 North Third Street, 5 Acres

Former Niles Tool Works property

$2,032,905 $51,500 Demolition completeRemediation in process

The proposed redevelopment project includes the development of an alternative energy power generation facility to support expansion of the City of Hamilton’s electric utility system

Brownfield Program

Land BankOn April 13, 2012, Attorney General Mike DeWine announced the launch of a new grant program, “Moving Ohio Forward,” to assist communities in their economic recovery by removing blighted or abandoned structures to reclaim their neighbor-hoods. Consequently, the Butler County Land Reutilization Corporation, better known as the Land Bank, was formed. The Butler County Land Bank provided a mechanism for the City of Hamilton to access $1.1 million in matching funds from the Moving Ohio Forward program. These funds must be used before the end of 2013, but the City hopes to maintain the use of the Land Bank beyond the current funding deadline. Progress in 2012 included:

The City acquired approximately 100 properties through the Land BankThe City adopted a policy and procedure for the disposition of land acquired by the Land BankMade progress on developing a property donation process for private entities interested in donating properties to the Land Bank Demolitions have commenced on Land Bank nuisance properties The City has determined new owners of property in certain cases Those interested in Land Bank properties are encouraged to contact the Economic Development Department

Land ReutilizationThe City is making a concerted effort to ensure that land is available and ready for development in Hamilton. One important component of this effort is to revitalize underutilized properties, to make previously unusable properties “Shovel Ready.” The Brownfield Program, which has been an important tool in this effort for many years, and the Land Bank, a new tool in 2012, are key components in the strategy to prepare Hamilton for reinvestment.

$285.5kleveraged in 2012 for

brownfield reutilization from private and state funds

Demolition at 1550 Grand

The City of Hamilton has been working collaboratively with the State of Ohio and property owners to clean up and reuse underutilized properties through the Clean Ohio brownfield program. The goal of the brownfield program is to demol-ish underutilized properties, remediate identified areas of concern, and to redevelop the site into an economically beneficial use. In the last ten years, the City has leveraged $10.9 million in Clean Ohio Revitalization Funds (CORF), remediated 48 acres of land, and developed 5 new uses for old sites. Projects currently in process are:

Blighted buildings beyond repair will be demolished to make way for a more productive use of the land

4

Railr

oad

German VillageSMART Paper

Rossville DowntownCBD

E. High Gateway& Dayton Lane

South East

Phase IPhase II

High St.

The

Grea

t Mia

mi R

iverMain St.

$2+ mm

$1.9 mm

3homes

60town

homes

1new owner

$8.6 mm

Hamilton’s Local Economy Experiencing Investment

Infill Development & Urban Revitalization

Total Investmentresidential and commercial

development and redevelopment*

$25.8million

Hamilton experienced an estimated $25.8 million investment in 2012 - a sign that business and residents remain committed to Hamilton’s economic growth. There were many develop-ments worthy of celebration, such as new projects, job announcements, and capital projects, which fostered a sense of renewed excitement in Hamilton.

The Economic Development Department would like to take the time to recognize and celebrate the economic development activity that occurred in the City in 2012 due to the commitment and vision of Hamilton’s stakeholders.

*Based on the data from Permit Applications submitted to the City of Hamilton’s Community Development Department

The Historic Mercantile Lofts, an $8.6 million renovation in Downtown Hamilton, opened in April 2012. Its 29 market rate apartments are nearly 100% occupied and 3 of the 4 retail spaces are currently leased

The $2+ million renovation of the JournalNews building in Downtown Hamilton was completed. In January 2013, it became home to Butler Tech School of the Arts, Miami Valley Ballet Theatre, and Hamilton City Schools ABLE program

Construction began on RiversEdge, the City’s new riverfront amphitheater. Phase 1 will be a $1.9 million investment in Downtown Hamilton and will open in Spring 2013

Habitat for Humanity built 3 new single-family homes on the former Madison School site for low-moderate income families and have 4 more slated for 2013

Hamilton’s CORE Fund was launched in December 2012, which will assist revitalization efforts by offering gap financing for qualified commercial and residential real estate projects within Hamilton’s urban core. The CORE Fund anticipates a $5 million capitalization by the second quarter of 2013.

Headed by Mike Dingeldein, the CORE Fund is a venture supported by the City of Hamilton, the Hamilton Commu-nity Foundation, First Financial Bank, Fifth Third Bank,US Bank and SoMoLend. The CORE Fund will bridge the gap on targeted projects in the urban core to ensure their success.

The Robinson-Schwenn building (featured on cover page) assumed new ownership, underwent a renovation, and received improvements to its façade

Groundbreaking occurred on Beacon Pointe, a new residential development of 60 townhomes which will be a mixture of market rate and affordable housing

Revitalizing Hamilton’s historic urban core is a primary focus of the City’s Strategic Plan and there were many developments that occurred in 2012 which are energizing the city’s core district, includ-ing:

5

65

2545

63

partners

Job Growth

Koncert IT and Kroger’s pharmacy call center project was extended at Vora Technology Park, creating 65 jobs in 2012 with potential for growth

ThyssenKrupp Bilstein’s $6 million expansion in 2011 led to approximately 25 new jobs in 2012

Liferay, a California-based technology company, announced its plan to open its national sales office in Downtown Hamilton in early 2013, bringing 6 jobs to Downtown Hamilton in its initial phase

Hamilton’s Local Economy Experiencing Investment

Announcements & Recognition

Miami Valley Ballet Theater’s move to the JournalNews building will bring its 2-person staff to the heart of Downtown Hamilton. The JournalNews project will retain Butler Tech School of the Arts and Hamilton City Schools ABLE program Downtown

Job growth is one of the most crucial indicators of a healthy economy. A number of businesses experienced job growth or made important job announcements in 2012, including:

From anniversaries to regional recognition, Hamilton’s business and institutional community had much to celebrate in 2012. The Economic Development Department would like to take the time to honor their achievements:

Butler Behavioral Health announced they would be adding approximately 45 new jobs in Downtown Hamilton in 2013

ODW Logistics was recognized as one of the 55 fastest growing companies in Greater Cincinnati

Hamilton Caster was recognized by the University of Cincinnati's Goering Center for Family and Private Business as the Tri-State's 2012 Family Business of the Year for businesses that have been in operation for over 50 years

Community First Solutions acquired Partners in Prime. Today, Community First Solutions is the non-profit parent company of Colonial, Community Behavioral Health, Community First Pharmacy, and Partners in Prime and serves over 40,000 individuals annually

Butler County Lumber celebrated their 100 year anniversary and Ritzi Body Shop celebrated its 75 year anniversary

Miami University Hamilton announced it would be adding more 4-year programs at the campus. Less than five years ago, Miami Hamilton offered just two bachelor's degrees; today, the campus has five accredited degrees and is adding more to their curriculum

The Hamilton City School District received the National District of Character Award, the only school district in the nation to receive this honor

The City of Hamilton was recognized as having the Best Tasting Water in Ohio in 2012 and will represent Ohio in 2013 at the American Water Works Association National Contest

Fort Hamilton Hospital was recognized as a top ten hospital in the Cincinnati Metro Area by US News

ThyssenKrupp Bilstein and ODW Logistics were recognized by the Business Courier as two of the best places to work in Greater Cincinnati

The City earned the recognition of “Tree City USA,” the 8th consecutive year Hamilton has received the award

Special EventsSpecial events are an important source of economic development. Festivals, concerts, and many other events draw visitors into Hamilton and enhance quality of life for residents. Those that visit Hamilton for special events not only have a positive impact on Hamilton businesses, but also experience the renaissance occurring in the urban core, which is helping to change percep-tions of Hamilton and has even brought new residents to Downtown. Because the Economic Development Department recogniz-es the impact of special events, the Department staff includes a volunteer coordinator position.

6

$250 mm

$5 mm$4.3 mm$1+ mm17

new ER beds

1multi-use space

25kvisitors 2kconcert-goers 500

participants 300participants

300participants 100

participants

$15.7 Millionin commercial investment

occurred in 2012*

Hamilton’s Local Economy Experiencing Investment

Capital Investment

Hamilton City Schools completed its $250 million Master Facilities Plan in 2012, resulting in the most comprehensive building project of any school district in Ohio

Fort Hamilton Hospital broke ground on a $5 million expansion of their Emergency Room in August 2012, improving access, service, and efficiency. The Hospital also expanded its Sleep Lab (opened in January 2013)

First Financial Bank invested over $1 million in its Downtown Hamilton location to provide new training space for its employees in the Greater Cincinnati region

Community First Solutions invested $4.3 million in its buildings, including the $3.5 million Donna Y. Carruthers Manor House at Berkeley Square, a new $1.3 million wellness center, Elements at the Square, and expansions at the Community First Pharmacy in Downtown Hamilton

Bethesda Butler County expanded its cardiology services at its Hamilton location in 2012 and has plans to open an Emergency Room in 2013

Miami University Hamilton Downtown renovated its space in the Robinson Schwenn Building to create a multi-use space, strengthening the connection between campus and community

*Based on the data from Permit Applications submitted to the City of Hamilton’s Community Development Department.

Companies and institutions made large capital investments in Hamilton last year, illustrating their commitment to the communi-ty. As a result, Hamiltonians have expanded and enhanced medical options, Hamilton’s children have state-of-the-art class-rooms, and Downtown buildings were rejuvenated. Major investments include:

In addition to long-time favorites such as the 4th of July Parade and IceFest, there were new and expanded special events in 2012, including:

Operation Pumpkin, with 100 vendors and food booths

Hamilton Cornhole Cup, with participants from 22 states

Model T Jamboree, with 100 Model T’s

Hamilton’s Summer Concert Series, with 6 concerts

Sojourner Recovery Services 5k Walk/Run

RiversEdge Wheel and Heel Duathalon

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Retail salesperson $12.66/hour

Medical assistant $15.31/hour

Machinists $18.94/hour

Connector ManufacturingInterstate Warehouse

Vinylmax (HQ)Valeo Climate Control

ThyssenKrupp Bilstein

First Financial Bank

The Kroger Company

MeijerMiami University-Hamilton

Community FirstCity of Hamilton

Fort Hamilton HospitalHamilton City School District

Butler County 1,7501,095

1,020680

650370

325250250

230200190

180150

Top Employers by Number of Employees

Brazil1

Canada1

3France Germany

2

Ireland1

Italy1

2Japan

Netherlands

1

International Companieswith locations in Hamilton

Hamilton’s Economy At-A-Glance

Largest Industries**by Number of Employees

1,492 Public Administration

Retail Trade

Health Care & Social Assistance

Educational Services

Manufacturing

Food Services & Drinking PlacesOther Services

Construction

1,0164,133

3,317

3,1752,599

2,305

2,271

Employment Numbers24,698

total employees

1,822total businesses

$831average weekly salary *

*Butler County (Source: US Bureau of Labor Statistics)

Sample Average Hourly Wages***Hamilton’s Largest Industries

** ESRI Business Analyst, utilizing NAICS titles***Southwest Ohio Averages (Source: Ohio Department of Jobs and Family Services, “2018 Job Outlook” 8

In 2012, the City of Hamilton’s Economic Development Department made progress implementing the City’s strategic plan by emphasizing business retention, expan-sion, and attraction. The Department’s new staff established and strengthened connections with the City’s top employers, ensuring that local companies know who to contact when they need the City’s assistance and bringing to their attention programs that may benefit their operations. The Business Development Team provided an important support system for new and growing businesses, making it easier for companies to invest in Hamilton and assisting in the development of 30 small business projects.

Through the Department’s business attraction efforts, Hamilton received 30% more inquiries from prospective companies in 2012 than in 2011 and was able to offer these prospects a matching site or building two-thirds of time, positioning Hamilton to be a stronger contender for prospective companies.

The Economic Development Department has also made a concerted effort to engage more proactively in the regional economy, making connections with the business community throughout the Cincinnati-Dayton region. These efforts help ensure that Hamilton remains in the forefront of the business community’s mind when making decisions.

The Department also expanded and organized its public relations strategy. Through targeted marketing and communications, the City is improving its connections with the local, regional, and even national business community, highlighting the progress occurring in Hamilton and opportunities to participate.

2012 was also a very important year for revitalizing underutilized land and build-ings in Hamilton. The Brownfield Program is currently transforming 3 blighted properties into development-ready sites slated for new projects. The Land Bank acquired nearly 100 properties, which will be demolished or redeveloped in 2013, stabilizing neighborhoods and enhancing the desirability of surrounding property.

1

Initiative Update October 2012

2012 Economic Development Summary

ThyssenKrupp Bilstein, one of Hamilton’s largest companies, expanded its workforce by 25 employees in 2012. They currently employ 250 employees.

City Initiative Update serves as an important communications piece

Demolition photograph at one of the Land Bank’s first houses

9

2012 (continued)Revitalization efforts in Hamilton’s urban core made significant progress in 2012. Projects like the JournalNews building and the Historic Mercantile Lofts are catalysts for development as people take notice of the urban core’s transformation. These efforts, along with the commitment of Hamilton’s stakeholders, seen through capital investments, job growth, volunteer hours, new ideas, and an endless array of other activities, position Hamilton well for the upcoming year.

There is much to look forward to in 2013. A number of projects that began in earnest in 2012 will come to fruition in 2013, and the Economic Development Department believes that this year will usher in even greater growth and investment throughout the community. 2013 will also be the first year for the CORE Fund, an important new addition to the partner organizations that the Economic Development Department collaborates with to build a healthy, robust economy in Hamilton.

The City of Hamilton has demonstrated its commitment to working outside the traditional way of thinking, creating innovation at all levels of City

and the Economic Develop-ment Department will contin-ue to strive to be an integral component of this culture of innovation in 2013.

Utilizing lessons learned from 2012 and leveraging the community’s positive momen-tum, the Economic Develop-ment Department is develop-ing a strategic plan that challenges our staff to achieve even greater goals in 2013.

Message from the Director

Photo Courtesy of the Cincinnati Business Courier

The City of Hamilton’s renaissance is thriving and full of possibility. There were many projects in 2012 that moved the City’s vision forward and the Economic Development Team is confident that 2013 will bring even more projects, jobs, and business activity to our community.

I believe Henry Ford’s definition of organizational success is a fitting definition for the City of Hamilton: “Coming together is a beginning, staying together is progress, and working together is success.” The City of Hamilton has a number of appealing attributes for retaining and attracting businesses; however, the most important attribute the community has is the commitment of its residents, elected officials, community service organizations, and City staff toward a single goal - making Hamilton a community that is desirable to live, work, and play.

- Jody Gunderson, Director of Economic Development for the City of Hamilton

Looking Forward: 2013 Economic Development Strategy

The Economic Development Department strives for continued investment in Hamilton and its historic urban core in 2013, like that of the Historic Mercantile Lofts project

2013

10

Economic DevelopmentDepartmentDirector ................................................Jody Gunderson

Economic Development Specialist.............................................Stacey Dietrich-Dudas

Business Development Specialist.....Antony Seppi

Volunteer Coordinator.........................Karen Wittmer

Administrative Secretary....................Karen Bowling

Earl Brush Fellow.................................Liz Colombo

Phone..................................................513-785-7070

E-Mail..................................................econdev@ci.hamilton.oh.us

Website...............................................www.hamiltonohiobusiness.com

Economic DevelopmentCity of Hamilton