Quarterly Report Fiscal Year 2012 -2013 4th Quarter · 2015. 11. 12. · INTRODUCTION Economic...

City of Chandler

Economic Development Division

Quarterly Report Fiscal Year 2012 -2013 4th Quarter

INDEX

Table of Contents INTRODUCTION .............................................................................................. 3

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

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

RETAIL ............................................................................................................ 10

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

TOURISM ........................................................................................................ 18

2 Economic Development Division June 3, 2014

INTRODUCTION

Economic development activity continued on a positive trend during the third quarter. For the quarter ending June 30, 2013, Economic Development staff combined efforts identified 6,085 leads and 23 prospects, representing an estimated 2,405 jobs, occupying approximately 378,870 square feet of space $10.5 million in capital investments.

4th Quarter Combined Efforts

Retail Industrial/Office Tourism Total Leads 13 51 6,021 6085 Prospects 10 13 23 Jobs 150 2,255 2,405 Square Footage 210,000 168,870 378,870 Capital Investment

$10,574,560 $10,574,560

Retail: 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 clients by keeping track of when the construction permits are reviewed and issued. For Q4, Retail staff participated in the following activities:

Activity Location Date ICSC ReCon Convention Las Vegas, NV May 19 – 21, 2013 For Q4, Industrial/Office staff participated in the following activities:

Activity Location Date NBIA Boston, MA April 7-10, 2013 Chandler Airport Days Chandler, AZ April 6-7, 2013 BIO Chicago, IL April 21-24, 2013 Relac East Valley Economy Tempe, AZ May 30, 2013 Vibrant Phoenix Chandler, AZ June 13, 2013 Tourism: Tourism staff conducted the following trade and media activities for Q4:

Activity Location Date WACVB Tech Summit Mesa, AZ April 17-19, 2013 Mexico Sales Mission Mexico City and Guadalajara April 22-26. 2013 TBEX Toronto, ON Canada May 31 – June 3, 2013 In addition to trade and media activities and travel, staff operates the City of Chandler Local Bites; a unique list of restaurants that supports Chandler’s one-of-a-kind dining


INTRODUCTION experiences whether they are independently owned or extraordinarily unique in the market. Downtown: Economic Development Downtown Redevelopment staff continues to work with the merchants to collaborate in advertising and promoting business in 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. 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

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 and it is essential to the City of Chandler’s estimated population of 241,988 citizens and approximated 96,929 housing units located in the City’s borders as of June 1, 2013. Economic Development personnel continually update economic data, and 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 and specific gaps, in targeting retail markets and linkages to key census information, which assists in presenting available sites.

150 95 48 150

607 808

302

2,255

10

510

1,010

1,510

2,010

2,510

3,010

Q1 Q2 Q3 Q4

Jobs Created FY 12-13

Industrial/Office Jobs

Retail Jobs


99,866 13,500 57,000

210,000

403,598

508,288

247,880

168,870

0

100,000

200,000

300,000

400,000

500,000

600,000

Q1 Q2 Q3 Q4

Square Footage FY 12-13 Industrial/Office S.F.

Retail S.F.

ECONOMIC DEVELOPMENT OUTLOOK The economic vitality of the City of Chandler relies on job growth and demographic factors.

The influx of educated workers, sustainable increases in population, higher education choices and a pro-business record, lay the groundwork for healthy job creation and employment opportunities.

Q1 Population 239,538 239,652 239,813

Jul. Aug Sep Q2 Population 239,935 240,133 240,662

Oct Nov Dec

Q3 Population 240,647 240,891 241,125

Jan Feb Mar

Q4 Population 241,365 241,547 241,998

Apr May Jun

Source: City of Chandler Planning Division June 1, 2013

Population Growth

Source: City of Chandler Planning Division

Source: City of Chandler, Sales Tax & Licenses


ECONOMIC TRENDS According to the Arizona Department of Commerce, by the end of Q4, the City of Chandler’s average unemployment rate is 5.7% while the City of Phoenix has a 6.9% unemployment rate and the state of Arizona has a 7.9% unemployment rate.

July Aug Sep Oct Nov Dec

Q1 Q2

Quarterly Unemployment Rate FY 12-13

Arizona

Phoenix

Chandler

Source: Arizona Department of Commerce Source: Arizona Department of Commerce

Jan Feb Mar Apr May Jun

Q3 Q4

Quarterly Unemployment Rate FY 12-13

Arizona

Phoenix

Chandler

Source: Arizona Department of Commerce


ECONOMIC TRENDS Employment occupation data identifies and analyzes total employee counts per establishment within various industries.

During the third quarter, the number of employed citizens reflects a slight increase for the City of Chandler and the state according to the Arizona Department of Commerce. Since last quarter, the City of Chandler gained an average of 185 jobs to its 126,286 total from the previous quarter; a 0.15% increase.

0.2%

16.6%

39.8%

7.7%

27.6% 8.3

Employment By Occupation FY 12-13

Farming, Forestry & Fishing

Service & Occupation

Managerial & Professional Service

Production, Transport, Material Moving

Technical Sales & Administrative Support

Construction, Extraction, MaintenanceSource: Claritas

Q4 Apr. 126,609

Q4 May. 126,475

Q4 Jun. 126,330

Chandler's Employment Numbers FY 12-13

Source: Arizona Department of Commerce 8

Economic Development Division June 3, 2014

ECONOMIC TRENDS

124,418

124,694

126,081

126,736

127,015

126,772

125,928

126,542

126,387

126,609

126,475

126,330

5,000 50,000 500,000 5,000,000

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Q1

Q2

Q3

Q4

Employment Comparison: Chandler vs. Arizona

FY 12-13

Series2

Series1


RETAIL Economic Development Retail staff located five new companies that included one restaurant, one supply store, one outlet store, one fitness gym, and one-neighborhood market to the City of Chandler.

Specific Q4 Retail Activities:

1. Shopper’s Supply In 1966, George Schmidt opened the first Shopper’s Supply store, starting out as a small fleet & farm store in Spencer, Iowa, which blossomed into a family- owned, multi-store retailing business. In 1989, George’s son Jim took over the stores. In December 2011, Shopper’s Supply opened its first store outside of Iowa, expanding to Chandler, Arizona, which is the main headquarters. Shopper’s Supply carries a large selection of merchandise at competitive prices including automotive, clothing & footwear, hand & power tools, electrical, farm & ranch supplies, firearms (at select locations), feed, housewares, lawn & garden, pet supplies and plumbing. This store is located at Alma School and Queen Creek Road.

2. Wal-Mart Neighborhood Market

Launched by Wal-Mart and introduced in 1998 as Wal-Mart Neighborhood Market, Wal-Mart Market is a chain of grocery stores that are designed to be the opposite of its vastly larger superstores. These smaller stores are meant to "woo

Q 1 Q 2 Q 3 Q 4

Retail Leads & Prospects FY 12-13

Prospects

Leads


RETAIL

shoppers with easier parking, less crowded aisles and quicker checkout". Wal-Mart Market stores offer a variety of products including a full line of groceries.

3. LA Fitness

Born in Southern California in 1984, LA Fitness continues to seek innovative ways to enhance the physical and emotional well-being of its increasingly diverse membership base. Today, its state-of-the-art clubs span the continent and continue expanding to this new location at the crossroads of Cooper Road and Chandler Blvd. LA Fitness is committed to understanding and meeting the distinct needs of each community they serve with their wide range of amenities and a highly trained staff who provide fun and effective workout options to family members of all ages and interests.

4. Bealls Outlet Bealls is a privately held company owned by the founding family and its employees. The corporation operates over 500 retail stores since its modest beginnings in 1915. Customers can find brand name apparel and accessories for the entire family at up to 70% off department store prices. The store carries shoes, home furnishings, gifts, and toys. Bealls Outlet is major employers in the state of Florida. Their corporate headquarters is located in Bradenton, Florida, with stores located in Georgia and their new Chandler, AZ location at Alma School and Warner Road.

5. Naber’s Music Bar and Eats Nabers Music Bar and Eats is located at the crossroads of 5th Street and Galveston Road. They offer a fresh from-scratch array of choices to include burgers and sandwiches, appetizers, dessert, soup, salad and wraps. In addition to their menu choices, Nabers offers live music Tuesday through Saturday nights with well known, first class bands such as The Ryan Sims Band, Young Country, Crown Kings, Mogollon, The Desert Dixie Band, The Walkens, Furious George and Chuck E.

Activity this quarter reflected a significant reuse of big-box space (121,000 square feet), including Shopper’s Supply taking a former Target at Alma School and Queen Creek and Bealls Outlet taking a former PetSmart at Alma School and Warner Road.

11

Economic Development Division June 3, 2014

RETAIL

Reta

il NAME LOCATION JOBS S.F.

1st Quarter Locates US Egg Kyrene rd & Chandler Blvd 50 6,500 Anytime Fitness Alma School Road & Chandler Blvd 15 5,100 Longhorn Steakhouse 54th Street & Ray Rd 50 3,500 Firehouse Subs Gilbert Rd & Germann 20 2,100 Panchero's Dobson Rd & Chandler Blvd 15 2,000

Reta

il

NAME LOCATION JOBS S.F 2nd Quarter Locates

My Doctor Now Alma School and Elliot 25 7,000 Chop Dobson Rd & Queen Creek Rd 20 4,000 Five Guys Burgers Arizona Ave & Ocotillo 25 2,500

Reta

il

NAME LOCATION JOBS S.F. 3rd Quarter Locates

Wal-Mart Neighborhood Market Kyrene Rd & Chandler Blvd 65 44,000 Whiskey Rose Saloon Arizona Ave. & Ocotillo 25 7,000 Zipps Sports Grill Arizona Ave & Ocotillo 25 6,000

Reta

il

NAME LOCATION JOBS S.F. 4th Quarter Locates

Shopper’s Supply Alma School and Queen Creek 25 94,000 Wal-Mart Neighborhood Market Cooper and Chandler 65 47,000 LA Fitness Arizona and Ocotillo 25 35,000 Beall’s Outlet Alma School and Warner 15 27,000 Naber’s Music Bar and Eats 54th and Galveston 20 7,000

Economic Development and job creation accompany one another and job creation offers ways to advance the economic security of the city’s population.

Staff efforts in this quarter produced 150 new jobs and occupied 210,000 square feet of retail space. By the end of the 4th quarter, staffs combined efforts created 485 new jobs and occupied 299,700 square feet of retail space.


RETAIL

19,200 13,500

57,000

210,000

Q1 Q2 Q3 Q4

Retail Total Square Feet FY 12-13


150

70

115

150

Q1 Q2 Q3 Q4

Retail Total Jobs Created FY 12-13

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

Specific Q4 Industrial/Office Activities:

1. Nationstar Mortgage Nationstar Mortgage headquarters are located in Lewisville, Texas, just outside of Dallas. Since its inception in 1997, Nationstar Mortgage is one of the nation’s leading mortgage servicers and lenders offering conforming, Fannie Mae, FHA, FHLMC, VA loans, Jumbo and USDA products directly to consumers.

2. Ontrac Ontrac moved their corporate headquarters to Chandler, AZ in the new Continuum Science and Technology Park on Chandler’s Price Corridor. Ontrac is the leader in overnight package delivery services and is currently in eight western states; California, Arizona, Nevada, Oregon, Washington, Utah, Colorado and Idaho. Ontrac offers various service levels and delivery times to their customers, which are:

• Sunrise Service - Delivered by 10:30 a.m. and Saturday delivery by 2 p.m. • Sunrise Gold Service - Delivered by 8 a.m.; Saturday delivery by 12 p.m. • OnTrac Ground Service - Next-day and 2-day delivery by end of business

day; Saturday delivery by prior arrangement. • Palletized Freight Service - Delivered by 5 p.m. Saturday delivery by prior

arrangement.

Q 1 Q 2 Q 3 Q 4

Industrial & Office Leads & Prospects

FY 12-13

Prospects

Leads


INDUSTRIAL & OFFICE

3. ClearCall Solutions ClearCall Solutions is a national leader in direct response sales and marketing, specializing in business to customer acquisitions for Fortune 500 companies. Clearcall Solutions is the parent company to several subsidiary B2C companies, which include ADT in 2007, Dish Network in 2003, and American Cornerstone Insurance in April of 2014.

4. HealthTell Cleanroom HealthTell is a biotechnology start-up company that developed a system for providing “immunosignatures” for early screening and diagnosis of multiple diseases, such as cancer and Alzheimer’s. HealthTell is a tenant at the City of Chandler’s Innovations Science and Technology Incubator. HealthTell expanded to add their own cleanroom for further research and development.

Nationstar Mortgage is the first company to locate in the refurbished Motorola Building in the Continuum Science and Technology Park on Chandler’s Price Corridor.

Indu

stria

l/O

ffice

NAME LOCATION JOBS S.F. CAPITAL INVESTMENT

2nd Quarter Locates Energaia McClintock Dr & Chandler Blvd 3 1,014 $0 Simpson Strong-Tie Arizona Ave & Elliot Rd 15 18,687 $2,401,525 Invoy Technologies McClintock Dr & Chandler Blvd 12 2,500 $750,000 Infusionsoft 202 Santan & Price Rd 350 92,000 $17,500,000 Brycon 56th St & Frye Rd 35 16,187 $1,793,700 Elements PS McClintock Dr & Chandler Blvd 150 238,500 $3,135,000 Recondition Systems I-10 & Chandler Blvd 208 104,400 $2,220,000 Santan Brewing Co. Warner Rd & Arizona Ave 35 35,000 $7,500,000

Indu

stria

l/O

ffice


1st Quarter Locates AKO Engineering Price Rd & Willis Rd 15 2,500 $0 Healthtell McClintock Dr & Chandler Blvd 6 3,300 $2,401,525 Southwest CFO McClintock Dr & Chandler Blvd 1 136 $750,000 Phacil GSA Kyrene Rd & Chandler Blvd 120 38,000 $17,500,000 Phacil Corporate Office Price Rd & Willis Rd 0 1,200 $1,793,700 St. Clair Technologies Price Rd & Frye Rd 25 9,500 $3,135,000 Intel R & D Chandler Blvd & Rural Rd 350 300,000 $2,220,000 Aero Zone Gilbert Rd & Germann Rd 30 30,000 $7,500,000 Eaton I-10 & 54th St 60 18,962 $0


INDUSTRIAL & OFFICE

Indu

stria

l/O

ffice

NAME LOCATION JOBS S.F. CAPITAL

INVESTMENT 3rd Quarter Locates

IO Manufacturing Arizona Ave & Warner Rd 140 120,555 $0 ASML 202 Santan & Frye Rd 70 42,190 $5,062,800 Banner Health Alma School Rd & Germann Rd 25 21,052 $3,916,297 Isola Expansion Ray Rd & Price Rd 25 40,000 $496,400 Apps Freedom McClintock Dr & Chandler Blvd 10 1,074 $0 Fairchild Semi-Conductor McClintock Dr & Chandler Blvd 1 1,175 $0 Dragon Fire Racing Elliot Rd & Arizona Ave 25 15,035 $75,000 Gamma Dynamics McClintock Dr & Chandler Blvd 1 1,175 $0 React Defense Arizona Ave & Elliot Rd 5 5,624 $115,000

Indu

stria

l/O

ffice


4th Quarter Locates NationStar Price Rd & Queen Creek Rd 1,200 75,000 $2,860,160 Ontract Price Rd & Queen Creek Rd 850 55,028 $2,350,000 Clear Call Solutions Germann Rd & Dobson Rd 200 36,370 $4,364,400

Healthtell Cleanroom Innovations Incubator 5 2,472 $1,000,000

Job creation offers ways to advance the economic security of the city’s population while capital investment is a major planning tool in which needed improvements to the City's facilities and infrastructure are identified. In this quarter, staff efforts produced 2,255 new jobs.

607 808

302

2,255

0

500

1,000

1,500

2,000

2,500


INDUSTRIAL & OFFICE

In Q4, staff efforts occupied approximately 168,870 square feet of industrial and office space, in addition to a projected capital investment of $10.5 million.

At the end of the fourth quarter, staff combined efforts created 3,972 new jobs, occupied approximately 1,328,636 square feet of industrial and office space and secured $140.8 million in capital investment.

403,598

508,288

247,880

168,870

Q1 Q2 Q3 Q40

100,000

200,000

300,000

400,000

500,000

600,000

Industrial/Office Total Sqare Feet FY 12-13

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

Q1 Q2 Q3 Q4

$322,797,150

$35,300,225 $9,665,497 $10,574,560

Capital Investment FY 12-13


TOURISM Tourism staff finalized the FY 2012-2013 Prop 302 Maricopa County Grant Application and released three RFPS for services associated with website development, development of social media strategy and tourism video development.

The hotel industry in Metro-Phoenix continues to struggle; the ADR continues to grow, while continued growth in the hospitality industry is apparent, the Valley continues to lag behind the rest of the nation and remained below pre-recession levels.

Smith Travel Research, Inc. (STR) has developed the specific Q4 Chandler and metro Phoenix hotel industry occupancy, average daily rate (ADR), and revenue per available room (RevPar) as a custom set for the Chandler market that are represented in the charts below:

$82.31 $92.94 $115.17 $93.32


0.0%

50.0%

100.0%

Q1Q2

Q3Q4

49.1% 56.4% 70.5% 60.1%

Chandler's Occupancy Rate FY 12-13

TOURISM

Metro Phoenix Comparison (FY 12-13)

Q1 Q2 Q3 Q4

Occupancy 49.1% 56.4% 70.5% 60.1% Occupancy 48.0% 54.7% 72.3% 58.7% Average Daily Rate $82.31 $92.94 $115.17 $93.32

Chandler Average Daily Rate $82.10 $103.09 $133.44 $104.02

Metro Phoenix

Revenue per available room $40.43 $52.40 $81.20 $56.10 Revenue per available room $39.41 $56.36 $96.41 $61.10 * Re-publication or the re-use of this data, without the express written permission of STR is strictly prohibited.

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

$0.00

$50.00

$100.00

Q1Q2

Q3Q4

$40.43 $52.40 $81.20

$56.10

Chandler's Hotel RevPar FY 12-13

Tourism staff generated a combined 24,894 leads by the end of this quarter. Tourism staff also maintains the tourism website, www.visitchandler.com that is featured in each advertisement, brochure, and press release and utilized at trade shows.


Q1 Q2 Q3 Q4

http://www.chandlerlocalbites.com/

http://www.visitchandler.com/

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