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13-7009 Economic Development Steering Council 2013 PrioritiesRESOLUTION NUMBER 13-7009 A RESOLUTION ADOPTING THE SALINA & SALINE COUNTY ECONOMIC DEVELOPMENT STEERING COUNCIL 2013 PRIORITIES. w WHEREAS, in 2007 the City of Salina, Saline County, and the Salina Airport Authority approved the New Economic Development Strategic Plan, which outlined specific strategies to assist agencies and the Salina Area Chamber of Commerce in creating and stimulating private sector capital ' o investment in Salina and Saline County; and U WHEREAS, over the last year, government official and business persons in Salina have worked together applying certain organizational and accountability aspects of Lean to draft an updated strategic plan; and WHEREAS, the Chamber of Commerce presented the Salina & Saline County Economic Development Steering Council 2013 Priorities to the City Commission at the May 13, 2013 study session. SO, NOW THEREFORE, BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Salina & Saline County Economic Development Steering Council 2013 as attached and incorporated into this resolution at Exhibit "A" is hereby approved. Section 2. That this resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 3`d day of June, 2013. (SEAL) A T ST: Lieu Ann Elsey, CMC, Citoerk J Barbara V. Shirley, Mayor dlh RESOLUTION NUMBER 13-7009 A RESOLUTION ADOPTING THE SALINA & SALINE COUNTY ECONOMIC DEVELOPMENT STEERING COUNCIL 2013 PRIORITIES. WHEREAS, in 2007 the City of Salina, Saline County, and the Salina Airport Authority approved the New Economic Development Strategic Plan, which outlined specific strategies to assist agencies and the Salina Area Chamber of Commerce in creating and stimulating private sector capital investment in Salina and Saline County; and WHEREAS, over the last year, government official and business persons in Salina have worked together applying certain organizational and accountability aspects of Lean to draft an updated strategic plan; and WHEREAS, the Chamber of Commerce presented the Salina & Saline County Economic Development Steering Council 2013 Priorities to the City Commission at the May 13, 2013 study session. SO, NOW THEREFORE, BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Salina & Saline County Economic Development Steering Council 2013 as attached and incorporated into this resolution at Exhibit "A" is hereby approved. Section 2. That this resolution shall be in full force and effect from and after its adoption. Adopted by the Board of Commissioners and signed by the Mayor this 3"d day of June, 2013 (SEAL) Barbara V. Shirley, Mayor ATTEST: Lieu Ann Elsey, CMC, City Clerk Salina & Saline County Economic Development Steering Council 2013 Priorities Cityof sialina Salina Area Chamber of Commerce Right place. Right reason. Right now. SA L INA A Irport Salina & Saline County Economic Development Steering Council 2013 Priorities Table of Contents Preface................•......•....•........•........•...•.•.............................. 2 Pae 1 Branding& Marketing........................................................... 4 g Protect and Increase the Economic Impact of the Military...... 5 "Breakthrough" Project that Stimulates Rapid Growth........... 6 Cultivate Future Community Leadership ................................. 7 EconomicDevelopment Incentives .......................................... 8 Financingand Fund Raising .................................................... 9 RemoveRoadblocks to Growth.............................................10 Kansas WorkReady Community/Region...............................11 Existing Business Growth and Retention ............................... 12 Infrastructure Development...................................................... 13 cityof SA,11NAAMpart ' cilia POP ltvx kfdr.sf-aw 11 dr nr Salina & Saline County Economic Development Steering Council 2013 Priorities Preface The purpose of this economic development strategic plan is to detail a set of strategic initiatives that improve the Salina -Saline County business climate. These objectives create focused work to address underlying issues related to improving economic and community growth in Salina. An economic development strategic plan will help Salina create and maintain a strong and vibrant local economy. The plan sets policy direction for economic growth and identifies specific improvements to the Salina regional business climate. This document seeks to provide guidance to the community and businesses of the Salina area about the priorities that will encourage economic development. It is intended as the primary reference for organizations working to support the priority community and economic development activities. It is the result of participation by volunteer and/or elected leadership and staff from the City of Salina, Saline County, Salina Airport Authority and the Salina Area Chamber of Commerce. These groups are working together as the "Salina — Saline County Economic Development Steering Council." These priorities were identified after using a modified version of the LEAN manufacturing process. Private sector firms in Salina and around the world use this approach to create focus on outcomes and joint accountability. The plan identifies a focused number of priority action items that will each have a long term effect on the business climate of the Salina area. The detail of each plan element includes a timeline, strategies and action items to be accomplished. Specific key performance indicators were identified and benchmarked. For example, the new square feet of building space that was occupied was tracked along with the amount of private sector capital investment. In 2012, the steering council worked on a variety of priorities including working with USD 305 and Salina Area Technical College to develop new career pathways for students. Facility improvements will be made in addition to curriculum changes. Our long term objective is to build prosperity by focusing on the creation of "quality" and "premier" wage jobs that are full-time or equivalent employment positions typically with a private business. "Quality" wage jobs are defined as those above the Saline County median wage by 110 percent and that meet Kansas Department of Commerce program eligibility criteria for the PEAK program. In addition, "quality" wage jobs provide various other value-added job aspects such as opportunities for advancement, capacity to save for retirement or certain other special benefits that are reviewed and determined to provide significant long-term benefit. Ci'tyo[ k A -LINA Apart "RE141 4_t4_ZW w, Page 12 Salina & Saline County Economic Development Steering Council 2013 Priorities "Premier" positions meet "quality" standards and have a wage level that exceeds the annual median Saline County wage for employment positions of a like classification by at least 110 percent or an annual wage level of at least $40,000 (adjusted annually based on CPI data). Business recruitment efforts and the use of incentives are guided by the desire to increase the number of residents in these wage levels. Increased personal income and wealth increases the Page 13 tax base so the Salina region can provide the level of services its residents and employers expect. cnyof 'Srd%1�d S IN *art S-Cdifl_a Salina & Saline County Economic Development Steering Council 2013 Priorities Branding & Marketing Problem Statement Salina has a hard to define perception. It is a challenge to explain "what Salina is known for" to internal and external audiences. As demographics of central Kansas change, it will be critical to positively position Salina and its brand in the minds of future residents. More workers are selecting location first and job second. We want to assure existing and prospective employers about the long term labor availability found in central Kansas. Project Scope This project will lead to recommendations about re -branding the Salina region to current residents and people that live in greater Kansas. In addition, the project will have specific recommendations related to positioning Salina in the minds of those who influence corporate growth decisions. The task force will examine branding associated with multiple major community stakeholders including, but not limited to, the Salina Airport Authority, Salina Area Chamber of Commerce, City of Salina, Saline County, USD 305, and Salina Downtown, Inc. Deliverable/Target A comprehensive marketing and image study will be completed. A plan to build awareness of Salina's assets by targeted decision makers will be completed. The success of the plan will be measured by benchmarking community self-perceptions via a survey sent to over 3,000 residents. Kansas Wesleyan University faculty and students will evaluate survey responses. In the future, residents will be sent the same survey and the results will be compared. The value of corporate collateral support and earned media in regional news coverage will also be tracked. Improvement Concept We intend to build upon recent efforts to improve local perceptions by implementing a plan to build awareness of Salina among decision makers in target industries and site selectors. The plan will also work to maximize the positive impression of Salina to visitors. Contribution to Economic Development A better defined image of Salina will impact tomorrow's workforce as they determine where they want to live. Labor availability will play an increasingly important role in the ability to attract growth from existing employers and from new businesses. In addition, the image of Salina for business growth decision makers needs to be defined and then marketed. Project Team and Stakeholders Dennis Lauver, Salina Area Chamber of Commerce, is the team leader on this objective. The project team will include representatives of Inter -City Visit attendees group, Salina Area Young Professionals, Salina Downtown, Inc., Salina Airport Authority, City of Salina, Saline County and Salina Area Chamber of Commerce. City0f slqlw Sal i [I, Irart �� lq"Vw Page 14 Salina & Saline County Economic Development Steering Council 2013 Priorities Protect and Increase the Economic Impact of the Military Problem Statement A proactive stance must be taken to continue the growing economic impact of the military on the Salina economy. As federal government budget challenges impact decisions about military Page 15 operations, creative and collaborative efforts to reduce costs will be necessary to prevent decisions that would negatively impact Salina. In addition, we must strengthen the unique assets of Salina military facilities. Marketing those assets to potential users needs to be enhanced. Project Scope This issue impacts the various service providers and vendors for those who receive training in Salina. These entities include the private sector and many local government entities. Deliverable/Target A written plan will identify opportunities to cut costs and improve cost efficiencies for military facilities. A marketing plan to increase use of the Great Plains Joint Training Center (GPJTC) will be drafted. A state-wide plan will be implemented, with Salina specific strategies, to protect and grow the military's economic impact. Our work will track the number of people using the GPJTC and cost reductions for operations. Federal allocations for GPJTC will be tracked. Improvement Concept Collaborative projects will be implemented to reduce the cost of Salina's military operations and to create improved financial efficiencies. In addition, a community based effort to market military facilities will be implemented to increase the attendees at the GPJTC. Contribution to Economic Development This initiative will increase the stability of the local economy. As military staff look for a place to work after they complete service, the Salina region gains a continuing source of labor. Project Team and Stakeholders Tim Rogers, Salina Airport Authority, is the team leader on this objective. The project team will include representatives of the GPJTC, Salina Airport Authority, City of Salina, Saline County and Salina Area Chamber of Commerce. Community efforts will be coordinated with the Kansas Governor's Military Council. SALIVA irport 4_aw� " i�dtY+l�c. Salina & Saline County Economic Development Steering Council 2013 Priorities "Breakthrough" Project that Stimulates Rapid Growth Problem Statement There is a need to stimulate accelerated economic growth in Salina. A balanced approach to economic development should focus on small and medium sized growth projects. However, the need exists to commit resources of time and money to work on large growth projects. Page 6 Project t Scope Existing businesses, taxpayers, local governments and the community at -large will be impacted positively. Deliverable/Target A significant increase in jobs, revenue and stability to Salina will result. The economic impact will be measured by increased payroll and employment trends, and are measures that will be significant. Improvement Concept A new strategy will be created to allocate resources to secure a major transformational growth project. Resources will need to be allocated so Salina can effectively secure the project. Contribution to Economic Development A project that spurs significant growth will lead to additional primary employment, retail development and new jobs at "quality" and "premier" wage levels. Project Team and Stakeholders Clark Renfro, Larry Britegam, Dan Mendicina and Stephanie Carlin are team leaders on this objective. Ckyof S►s��indVe A-416114 MOW SALINAMrpart fi�dr.r�:w.i Salina & Saline County Economic Development Steering Council 2013 Priorities Cultivate Future Community Leadership Problem Statement Salina has historically been blessed with competent, civic minded leadership. Not all communities are this fortunate. A limited number of citizens with exposure to civic leadership training and/or opportunities is one symptom of a community leadership void. Another indicator is a lack of interest in citizens desiring to serve. Preservation of Salina's pool of leaders for future generations has been identified as a primary community goal. Project Scope This initiative is intended to both preserve and enhance the quantity of civic leadership in the Salina area. This is done through community engagement, training, use of individual development plans, opportunities for experience and a strong encouragement to volunteer. Addressing this issue will impact existing employers already in Salina and employers that will choose to grow here because of the high quality of local leaders. Deliverable/Target Expanding the pipeline of qualified and principled candidates for local leadership positions is the general method used to benchmark success. Further benchmarking may occur through identification of the quantity of engaged persons participating in leadership training offerings and those involved in community volunteerism, occupational development, and participation on community task forces, committees, boards and other bodies. Improvement Concept Strong local leadership will assist in the growth of the community and the prosperity of its citizens. Leaders can have a positive impact on a community through private sector, public sector, civic and non-profit involvement. Engaged community leadership can make a significant difference with regard to the economic, social and governmental well-being of a community as illustrated by: a healthier business climate, stronger educational institutions, more cohesive neighborhoods and a continually improving quality of life. Contribution to Economic Development Leaders who view long-term economic and community development as mutually complimentary and a worthwhile community objective will have a lasting impression with regard to community- wide actions that encourage sustainable business growth through investment, education, workforce development and social engagement. Project Team and Stakeholders Todd Davidson, Hampton & Royce, and Dennis Lauver, Salina Area Chamber of Commerce are the team leaders on this objective. Others may be asked to assist. city oaf i�tirl,d A: NAA- art 4-aw"Paw $VJW Saline ..-.14rnr..��. rt.�• i�dx �•� Page 17 Salina & Saline County Economic Development Steering Council 2013 Priorities Economic Development Incentives Problem Statement Salina's local economy has remained stable, but somewhat stagnant over the last 20 years. The region has not been able to capture the quantity of "quality" and "premier" primary jobs desired for our market region size through either local growth or recruitment. The result has been lagging growth in both population and income. An opportunity is present to take advantage of the region's strong sales attraction to create a stronger presence for long term sustainability and growth. Project Scope Numerous stakeholders with jurisdictional impact (City of Salina, Saline County, Salina Airport Authority, USD 305, and Salina Area Chamber of Commerce) will create, adopt and apply a business incentive plan to ensure coordination and continuity of the economic development effort. Deliverable/Target An inventory of business incentives will be developed. The matching of business incentives with development types and desired outcomes will then occur. Guidelines will be recommended for the use of business incentives. A single standardized incentive request form will be created and will be adopted by each stakeholder. Improvement Concept The objective is to have a standard business incentive toolkit approved by all stakeholder groups resulting in local job and wage growth at higher than historical rates. Contribution to Economic Development This is intended to create an identifiable long term increase in population and wealth in the region; resulting in a larger consumer base, increased consumer spending and broader labor pool. Project Team and Stakeholders Jason Gage, City of Salina, is the team leader on this objective. The project team will include representatives of the GPJTC, Salina Airport Authority, City of Salina, Saline County and Salina Area Chamber of Commerce. City of N SAIINAAMpart 11""',� W -a ,... 0001ty, hbwr Page 18 Salina & Saline County Economic Development Steering Council 2013 Priorities Financing and Fund Raising Problem Statement Salina has limited funding available for economic development, which includes a portion of the local option sales tax. The Salina Economic Development Incentive Council recommends use of Pae 9 these funds to the Salina City Commission. In addition, there are other local, state and federal g dollars and private investments. The concern about relying on local, state and federal government agencies for economic development funding and incentives is a history of past cuts. If cuts occur in the future, growth and prosperity of Salina -Saline County will be negatively impacted without additional resources at our disposal. Project Scope Establishing the Salina Endowment for Economic Development (SEED) Initiative Endowment will provide resources to ensure Salina -Saline County will be a strong and vibrant place to live and work. The goal of endowment fund assets totaling $50M can be reached by 2032. Deliverable/Target A summary document explaining the SEED Initiative will be finalized. Details (fund agreement, allocation policy, etc.) with the Greater Salina Community Foundation will be approved. Recording the dollars raised, funding community and business development projects and positive changes in the Saline County community demographics (lower unemployment rate, increased net in -migration, etc.) will be the benchmarks of success. Improvement Concept The SEED initiative will be a locally developed and controlled source of financial support to help make community and economic development projects a reality. Contribution to Economic Development A stronger local economy will result in reduced unemployment, increased net migration into the county, and a larger labor pool with a higher quality skill set. Project Team and Stakeholders Stephanie Carlin, KC&G Business Appraisals, and Larry Britegam, Sunflower Bank, are team leaders on this objective. +kyor Salina SAMNANkp ' Sal i i a- �d►�a.r 4]�c nar Salina & Saline County Economic Development Steering Council 2013 Priorities Remove Roadblocks to Growth Problem Statement In order to improve the business climate in Salina and create an environment that is friendlier to growth, unnecessary barriers must be studied. Once their impact has been understood, an action plan can be created. Some barriers will be beyond local ability to address and others will create an opportunity for Salina to make a positive impact. Some local issues may be related to business issues and some may be due to local government policies and procedures. We will work to identify the barriers and remove them to create a competitive advantage for businesses operating in the Salina area. Most residents and business owners in Salina believe that our community assets should allow us to have faster business and population growth than our trend has been over the last three decades. Growth is typically viewed as a primary indicator to the overall quality of a community and a precursor to its long-term, future viability. At this point, it hasn't been determined what needs to be improved. However, it is clear that a structured approach to identifying potential roadblocks to growth is an essential step to further stimulating economic and population growth. Project Scope Success in this objective will positively impact businesses. As they grow, the city and county governments will benefit and the public at large will enjoy more prosperity. Deliverable/Target It is not enough to identify the roadblocks to growth; they will then need to be removed. Tracking of building permits, capital investment, job creation, customer feedback, etc., will benchmark success. Determining specifically what community roadblocks are in place that affect business growth, and a plan with specific strategies to overcome them, is the end result of this plan element. Discussions will occur with the business community to better understand their business needs and actual or perceived roadblocks. These will be contrasted to business climate conditions after strategic changes are made. Improvement Concept More quality jobs will be created, the regional economy will diversify and the local tax base will be enhanced and broadened. The ability of the business community to be more aggressive in their market and with their growth and development activities will result in "quality/premier" jobs. onfrlbUtlOtl to Economic Development It will take less time and cost to enter the market. Salina will enjoy the reputation of a community that wants to promote growth. Proi ect Team and Stakeholders Clark Renfro, Bennington State Bank, and Jason Gage, City of Salina, are team leaders on this objective. cny0f SALINAAMpart n=M 4"a -U14 MOW Page 1 10 Salina & Saline County Economic Development Steering Council 2013 Priorities Kansas WorkReady Community/Region Problem Statement The workforce skills gap continues to grow in local, regional, state and national sectors, and the need for skilled labor will become critical in the near future for Salina. Employers will benefit greatly to know the abilities of potential employees. They will also need a standardized Page 1 11 assessment tool to understand and quantify their unique skill sets. Project Scope Salina's current and future workforce will be impacted by this work. In addition, current employers and future economic development targets will have documented assurance that sufficient quality of workforce exists regionally. Deliverable/Target We will track the number of employers who commit to use the credential program as part of their hiring criteria. The number of people who complete the test will be monitored for progress. In time, the percentage of Salina's labor pool with certain skill sets will be apparent. At that point, those test scores can be normed to be business and industry specific and additional strategies can be implemented to improve the assessment score of Salina's workforce. Improvement Concept Potential employees will complete the ACT WorkReady assessment, a series of tests to validate their skill set. Salina will then be able to document, from a recognized third party, that sufficient quality employees exist in Salina's labor pool. People who take the test will be assigned a performance level, such as bronze, silver, gold or platinum based on their abilities. This will differentiate Salina from other communities that will only be able to provide anecdotal information about the quality of their workforce. Contribution to Economic Development This will improve the ability of employers (both existing and future) to know the Salina labor basin has sufficient quantity and quality in the labor force. Having the "KS WorkReady Community" status will be a helpful recruiting tool for Salina. Project Team and Stakeholders Dan Mendicina, Philips Lighting, and Eric Brown, Salina Area Chamber of Commerce, are team leaders on this objective. Jim Thomas, Exide, will assist. Others will support their work as needed. city c» lwffio Airport A W -1 Salina & Saline County Economic Development Steering Council 2013 Priorities Existing Business Growth and Retention Problem Statement Most job growth and capital investment is likely to come from existing businesses. In addition, other communities will seek to lure jobs and investment from Salina. Salina's business visitation program is designed with intentionality about the firms to be visited, how often they are visited and who is to make the visit. This will lead to better information that can be used to help create jobs and capital investment as it is shared with the key economic development partners. Project Scope Current employers will be interviewed. These include major industrial, service and retail employers, in addition to key funders of economic development efforts. Emerging employers, and those with recent building growth projects, will be interviewed. Appropriate external and key local decision makers will be interviewed. Information will be shared in a confidential manner between Salina's economic development partners. Deliverable/Target A four-year plan with detailed schedules of visits exists. The document lists firms to be visited and is organized by quarters over the four years. It identifies the parties that will make the visits. Successful implementation of this objective will decrease job reductions, facility closures and relocations of employers from Salina. Instead, new jobs will be created with capital investment occurring. The number of internal and external visits made will be a performance benchmark. Improvement Concept Opportunities for growth and "red flags" that can be addressed will be handled in a proactive manner. Business community volunteer leaders and the staff of Salina's economic development partners will actively participate in the visits. Contribution to Economic Development Employers in Salina will be better positioned to grow because community partners will maintain a culture where challenges are minimized and growth opportunities are pursued. Project Team and Stakeholders Dennis Lauver and Larry Powell, Salina Area Chamber of Commerce, and Clark Renfro, Bennington State Bank, are team leaders on this objective. Others will assist as needed. S&INAAMport �T Page 1 12 Salina & Saline County Economic Development Steering Council 2013 Priorities Infrastructure Development Problem Statement Salina's local economy has remained stable, but somewhat stagnant over the last 20 years. The region has not been able to capture the quantity of "quality" and "premier" primary jobs desired for our size market region through either local growth or recruitment. The result has been Page 13 lagging growth in both population and income. An opportunity is also present to take advantage of the region's strong sales attraction to create a stronger retail presence for long-term sustainability Project Scope To include all service -related stakeholders (i.e., City of Salina, Saline County, Salina Airport Authority, Salina Area Chamber of Commerce, Westar Energy, Kansas Gas Service and telecommunication companies) to create and apply an Infrastructure Plan to ensure availability of "shovel -ready" development sites for development prospects. Deliverable/Target • Geographic inventory of all potentially developable property, with priority determination • Inventory of site characteristics for all developable potentially property • Pricing and timeline projections to implement "essential" and "priority" infrastructure improvements. Improvement Concept The objective is to have a standard approach to reviewing land for "shovel -ready" status, in order to ensure that these properties are available for market to private development. This approach ensures that developable land is available almost immediately; thus, eliminating delays to responding to market demand. Contribution to Economic Development This initiative is intended to increase our probability of capturing a development prospect due to having properties that are ready for development without delay. Project Team and Stakeholders Dennis Lauver, Salina Area Chamber of Commerce, Tim Rogers, Salina Airport Authority, John Reynolds, Saline County and Jason Gage, City of Salina were team members working on this objective. Cityoi ,. WWSalim �+drAi�7 VMS*'