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Salina-Saline County Economic Development Strategic Plan Program Performance Report - 2nd Quarter 2012Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 In 2007, the City of Salina, Saline County, Salina Airport Authority an Chamber of Commerce adopted an economic development strategic pl detailed several major areas of emphasis. Each area of emphasis of objective s and strategies. This report summarized some of the key mostly accomplishments and completed actions from the plan. This report focuses nd on accomplishments during the 2 quarter of 2012. These items are detailed in blue. O: BJECTIVE A W Q&Q I DDRESS ORKFORCE UANTITY UALITY SSUES Salina is a great place to operate a business. For the Salina area to support job creation and capital investment, we must have a sufficient number of people with the skills that existing and new employers need. Workforce development is a very complex issue with no silver bullet. The task force studied the subject in terms of labor availability, wage inflation and employee competition, employee retention, and the availability of training that matched employers’ skilled and semi-skilled workforce needs. Our plan is a two-step process. The first step is a comprehensive assessment to understand the assets and barriers for the Salina labor force. The second step is to implement specific strategies that will 1) grow our labor force 2) retain existing employees or 3) provide pre-employment training and training of existing employees. Targeted workforce development strategies will be implemented as soon as possible. They will be: • Develop a workforce development marketing campaign to attract and retain talent to Salina. The campaign will target the populations, skill-sets, communities and regions that match Salina’s workforce needs. The emphasis will be on semi-skilled employees and professionals. • Form a Workforce Development Advisory Committee to provide counsel and guidance as the workforce portion of the economic development strategic plan is implemented. This is described in the “Create the Organizational Capacity to Succeed” portion of the plan. • Education and training for employees is needed at both the pre-employment and at the post-employment stage. The Workforce Needs Assessment will be developed in an inclusive manner with input from entities like the Salina Human Resource Association plus the American Chamber of Commerce Executives’ Workforce Development Division. We anticipate conducting a Business Trendsetter luncheon for the business community to discuss local, regional, national and global trends that impact workforce training. During the first year of the Economic Development plan, several specific strategies will be implemented. The strategies include: 1 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 • Creating the new position of Marketing Manager. This individual will work with the vendor selected to implement the Salina Chamber’s new comprehensive marketing plan. This position will have the responsibility to coordinate implementation of the marketing plan with other Salina Chamber staff and volunteers. Print and non-print marketing materials will be developed for targeted workforce audiences. • Implementing an aggressive multi-media marketing campaign to target audiences about the employment opportunities in the Salina region. Expanding the Salina Chamber s website • to include information about jobs in Salina and to acquaint K-12 and post-secondary students, school counselors and other staff, and adults about job, career and educational opportunities in Salina. Purchasing Nations Job web-based service to connect job seekers with employers in • the Salina area Nations Job . is the leading national web-based job site that works with communities and chambers of commerce. Formation of task forces for the recruitment of specific populat • groups such as Hispanics and other minority groups, older Americans, etc. Developing a Recruitment/Retention Incentive Program • to attract and retain new employees and/or award employee referrals. Working with college interns to develop innovative recruitment t • such as videos of Salina posted on www.youtube.com and www.myspace.com. Conducting workforce missions and other recruitment activities a • secondary and post-secondary schools, locations with available labor and communities experiencing lay-offs of workers. Sub-contracted recruiters, formerly from this area, will represent Salina, as needed, at selected out-of-state job fairs or schools. Supporting the proposed OCCK Inc. Workforce Center • for the delivery of Workforce Investment Act’s employment and training services. Enhancing our cooperation • with the Kansas Department of Commerce, Kansas State Department of Education, State and Local Area I Workforce Investment Boards and services, the Salina Workforce Center, Social Rehabilitative Services, Smoky Hill public and private Education Service Center, the Adult Education Center and other agencies and organizations providing employment and other workfo services. In the plan s second year, additional strategies will include: A full-time recruiter for in-depth recruiting and follow-up services • as well as the coordination of the Salina Employment Clearinghouse to assist spouses find employment. The Recruitment/Retention Incentives Program, designed in year 1, will be launched. • Move Assistance We recommend starting with a Incentive, funded by participating employers, that would include: a) a $500 incentive for qualified skilled or degreed employees, b) $200 for a “not yet” qualified employee; and/or a specified dollar amount for employees who move into Salina from at least 50 miles outside the city. The advisory council will determine criteria and details of this program. 2 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 Beyond the assessment and an aggressive marketing program to attract labor, programs for workforce education and training are critical. Training must occur at the pre- employment stage and also after employees have been hired. There are several examples of high quality pre-employment training initiatives that already exist in the Salina area. In particular, the programs meriting continued strong community support are: • K-12 career education programs • USD 305 School to Careers programs • Middle and/or secondary technical education programs • Post-secondary degree and/or certificate programs • Smoky Hill Education Center programs • Salina Adult Education Center programs • Seminars and workshops dealing with topics such as supervisory skills, customer service, human resource topics, marketing, company succession, etc. In addition to strategies listed above, new and/or continuing initiatives related to pre- employment training will include: Futures Work-Based • Support for the annual CAREERS 200X Competition and the Mentoring Program to prepare alternative high school adult enrollees for the workplace Collaborative partnerships will be forged with K-12 and post-secondary institutions • to sponsor summer career academies for middle school students. This will help establish realistic expectations of post high school career opportunities and wages. Continued business community participation on boards and committ • technical education . Technical assistance will link employers with training providers. Exploration with other Saline County education and business stak • Salina-specific approach to advanced manufacturing and technical progra leading to employment and/or entry into Salina’s corresponding post-secondary technical programs. Developing a community education outreach to parents, students, • other stakeholders about the extremely positive non-college opportunities that abound in the Salina area . It is also critical that those already employed in the Salina labor shed need high quality training on a continuing basis. Various programs exist to assist in skill upgrades that will increase productivity. These initiatives include: Ka nsas Industrial Training, Kansas Industrial Retraining, Kansas Workforce Development Training and training supported by the Salina sales tax. New and expanded strategies will include: Two to three seminars/workshops annually • Co-sponsorship of seminars/workshops • with the Salina Human Resource Association and the Small Business Development Center, etc. in order to maximize resources and expertise and to reduce overall training expenses 3 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 An annual Business Trends Conference • to update and inform the business community of local national and global needs, trends and opportunities • Information and/or intermediary, brokering, and technical assist curriculum development and other training related services to companies and educational/training providers Collaboration with state and federal employment and training pro • Professional development will occur for Salina Area Chamber of C • workforce development staff to utilize resources such as workforce development software. This will enable them to effectively carry out their job responsibilities such as technical training related to providing workforce assessment, training assistance, and human resource services. In addition to the strategies listed above, Salina must address the issue of affordable housing for the workforce of tomorrow. The most recent City of Salina Housing Needs Assessment concluded that: • “The need exists for more moderate cost owner-occupied housing in Salina” • The number of “affordable market” homes ($90,000 -$125,000) projected for a housing development program is 733 over a 20-year program. The number of “moderate market” homes ($125,000 -$190,000) homes projected for a housing development program is 712 over a 20-year period. • “The analysis suggests a shortage of units affordable to households with annual incomes of more than $50,000. This suggests a possible market for “move up” housing. “ The status quo in Salina is not building homes in the price ranges above at the volume needed to meet long-term demand. To address the issue of housing as a solution to workforce development, the Salina Area Chamber of Commerce will implement a separate plan, created with other stakeholders, to provide “second time or move up housing”. This economic development strategic plan affirms this as a priority and designates $130,000 to support lower cost infrastructure development that will allow affordable housing to be constructed in Salina. Dan Mendicina, Philips Lighting and 2012 Chamber Board Chair, plus Dennis Û Lauver and Eric Br own, Chamber of Commerce, have worked with officials from the manufacturing community and the education community to create a better system to transition students from high school to the workplace. Their work has accomplished the following so far: Concept ual agreement has been reached to approve an articulation • agreement between Salina Area Technical College and USD 305 in c career pathways. USD 305 staff expected to review this at the B Education level this fall as part of a plan to be imple mented over multiple years. Students with the right course work in high school will graduate with one year of college from SATC finished. This will be at no extr student or family. With only one year of post high studies, a s fin ish with a two year degree and will be certified and trained for 4 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 a Welder, Machinist, in the career pathway of STEM (Science, Te chnology, Engineering and Math) or Construction. Over the course of multiple meetings,over 20 people, including management • and HR staff from Exline, Exide, ElDorado, Vortex, K-Tron, Schwan s, GeoProbe, A & B Machine, Philips, Solomon Corp, Bergkamp, PKM Steel and G reat Plains reviewed detailed information (course summaries, curriculum schedules, equipment needs, faci lities and staffing) about the Welding, Machinist and STEM pathways. This information has led changes in the plan of both USD 305 and SATC. Salina Area Technical College has created an $830,000 plan for the • curriculum, facility and equipment changes to deliver desired programming. $630,000 of the project revenue will come from SATC funds and/or from cash or in-kind donations from the Salina area business community. In early July, t he college applied for $200,000 of grant funding. On J uly 17, 2012, the manufacturing community will tour Salina Central • High School and Salina South High School for a very detailed review(with direct counsel and feedback)of the curriculum, facilities, equipment and staffing used for these career pathways. Meetings are sch eduled, but not yet held, to begin the process that will lead to • an articulation agreement between USD 305 and SATC for the residential and commercial construction career pathways. Details are still being developed on a structured system for employers to • identi fy talented students that will intern for manufacturers while th complete their studies at SATC. It is the intent of employers to system that helps move the student from SATC directly into the w Salina.Scholarships that are tied to future employment in Salina are among the concepts being discussed. The 2012 Kansas legislature approved several changes in Career a • Technical Education. The education and business community react these changes is positive. By being proactive and ahead of the legislature, Salina will develop its system to meet local needs and we will b positioned to take advantage of the new state policy. The Manufacturing Skill Certificate initiative continues to be a ful long Û term strategy to increase the skill set of underemployed and unemployed people. The initiative was collaboratively developed by local manufacture job seekers with a solid foundation of skills and knowledge. The eight credit hour certificate and includes training in Blueprint Reading, Precision Measurement & Quality Control, Applied Shop Mathematic Occupational Safety & Health, and Employability Skills. Salina Area Technical College will begin, on July 17, 2012, offe • Manufacturing Sk ills Certificate program in the evening. The success of the first two sessions of the Manufacturing Skills Certificate progr the expansion to include an evening offering, which we believe will increase participation. 5 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 State and Salina Area Techni cal College officials had hoped the January • 2012 announcement about the certificate would fill one daytime class. Instead, the announcement filled multiple classes and created a long waiting list. Those who successfully complete the Manufacturing Skill Ce rtificate • program are guaranteed a job interview with at least one of the Salina area manufacturers: Exide, Exline, Grain Belt Supply, Gre Manufacturing, K-Tron, Philips, PKM Steel and Salina Vortex. The affordability and availability o f housing is a critical factor in the ability of Û Salina to attract and retain talent. Chamber of Commerce staff worked with City of Salina staff to se • preferred developer to use Workforce Housing dollars received vi grant thanks to US Sena tor Jerry Moran. The chamber initiated the work with the Kansas congressional delegation and the North Central Region Planning Council for the funds, which total $491,750. The project will create 27 new single family housing units. Chamber staff partici pates in the Affordable Housing Advisory Council of • the Federal Home Loan Bank Topeka. This year, the bank will distribute approximately$11,000,000 to support housing priced for people who work. Through the end of August 2012, T he State of Kansas is acc epting proposals • to support development of moderate income workforce housing in rural Kansas. The State has $2,750,000 of funds for this project. T legislative changes lobbied for by the Salina Chamber, the definition of rural was changed fo r this program to include Salina. The Chamber provides administrative services for Salina Area You Û Professionals. This is critical to th e success of the group because y oung professionals, by their nature, are still changing their family a pr iorities. A great deal of stability has been achieved in the la the relationship with the chamber. This is a long term strategy to retain talent by cultivating the next generation of community leaders and helping them build stronger con nections to Salina. This helps retain people to the community when the temptation arises to leave Salina for career opportunities e. This is accomplished with programming related to volunteerism, networkin professiona l education and fun. The group has increased from 6 interested individuals to its cur • 125 active members They partnered with K State University Salina s Students In Free • Enterprise team to develop and implement a Keeping Homegrown Talent at Home project. Young professionals spoke to local high school seniors about the career opportunities that exist in Salina. An essay c held and two $500 scholarships were awarded. The group has volunteered at five different community events wit • differe nt people participating. In one project, the group members donated over $500 of toys to the Salvation Army. 6 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE S E&R UPPORT THE XPANSION ETENTION OF E E XISTING MPLOYERS This plan reflects the community desire to prioritize our focus on the expansion of businesses already located in the Salina area. The staffing and budget of the overall economic development strategic plan validates this priority. The following strategies will support this objective New focus/job description for current economic development staff • The job description of the current Director, Economic Development position will change to a more focused approach to working only with existing employers. A new title will reflect this change. The new title will be Director, ExistingBusiness Expansion and Retention. New business attraction and commercial development will no longer be part of the work plan for this individual, allowing them to focus more on supporting the growth of existing businesses. We will invest in the success of the director by providing professional development so that the director will be certified as a Business Retention & Expansion Professional by the Business Retention and Expansion International (BREI) association. Specific strategies with regards to existing business expansion and growth are as follows: Regular scheduled visits to existing employers. The visits will • Synchronist software program to conduct surveys to identify tren red flags, expansion opportunities and to determine how Salina can serve the employer better. Regular joint meetings with plant managers/business owners/econo • partners . Personal visits to corporate headquarters • . An electronic directory of key resource information will be prod xisting • businesses . An annual Salina Area Business Expansion & Retention (SABER) Day • organized. A second full-time position specializing on existing business growth and reten th created the 4 quarter of 2007. Thus, over the courseof a year, between the two Directors of Business Retention and Expansion, approximately 60 to 75 area employers will be visited face-to-face to address retention and expansion issues. Approximately 10 visits will be made annually to corporate offices. In time, a “macro” view of the Salina market will evolve allowing resources to focus on employers with high success probability and those who are struggling. Firms that have a high probability of failure will also be identified so that a strategy to assistthem can be implemented. 7 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 A community based transload facility will improve supply chain efficiencies for Û existing businesses in addition to more favorably position Salina for new employers. The init ial stage of the facility will allow for product to mo ve between railcar and truck via a forklift operator. Approval, budgeting and planning for t he facility has been targeted as a 2012 priority. Multiple meetings have been conducted with Uni on Pacific, WATCO and a • potential facility ope rator to identify potential sites, to verify demand and discuss operational issues. A feasibility survey with regional transportation directors and • specialists confirmed the opportunity for at least 120 railcars inbound + 49 outbound) of product and m aterials. Wilson & Co. is currently under contract to provide a site plan, • estimates and phasing recommendations for the facility. Their work is expected to be finished by the end of July 2012. The new KS Secretary of Transportation will visit Sa lina 8.2.12. Part of his • agenda will include learning about facility plans and the local intent to apply for KDOT funds to support the project. Û Larry Powell and Dennis Lauver are both certified as Existing Business Retention Specialists by appropriate professional entities. They conduc t visits to existing firms using the Synchronist survey program. Larry focuses on visits with local decision makers and Dennis works with corporate and/o level leaders about the issues and opportunities facing their Salina operations. With input from key business leaders, a four year schedule (brok • quarters) was developed to ensure personal visits are made to th existing business. The intentionality of the schedule will ensure better visits. To date in 2012, 34 meetings have been held with local businesses. On site • visits have been completed with the following: Westar Energy Bennington State Bank •• Kansas Gas Service First Bank Kansas •• Central Mall Mowery Clinic •• K Tron Salina Bergkamp Inc. •• PKM Steel The Bank of Tescott •• Salina Regional Health KU Medi cal School •• St Francis Community American Family Insurance •• Services Brown Mackie College • Solomon State Bank • Big Lots • Doug Bradley Trucking • Wells Fargo • Salina Presbyterian Manor • Salina Journal • Womack Sunshine • Eagle Crest • Supercenter DS&O • Sonic • Kejr Inc. • Bennett Autoplex • Hampton Royce • Smoky Hill LLC • Land Title Services • Advance Auto Parts • Marymount Properties • Rocking M Radio • ComPro • 8 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 To date in 2012, nine meetings have been held with corporate or • level staff at least one level about Salina operations. These me yielded insight about opportunities and challenges for important employers. K-Tron Advance Auto •• Exide Valmont •• Philips Wilson & Co •• Sunflower Bank Came ron •• Overland Properties • As of this writing, two other meetings(Cargill and Schwan s)are scheduled for 2012, with another six waiting to be scheduled. A written summary of the meetings is shared with key members of the Salina • Economic Development Team, including Airport Aut hority staff and consultants. The availability of schedule d air service is important to the success of many local Û manufacturers. This allows their customers and vendors to visit and it is an effective way for them to travel on business. The United State s Department of Transportation has authorized use of • Essential Air Service funds for four years to continue Seaport Airlines service from Salina. This is a longer time commitment than have been made in the past and it provides assurance for SeaPort about market stability. The Salina Airport Authority provided leadership and worked with the Salina,Saline County,the Chamber and others to create this positive result. Chamber, Salina Airport Authority and SeaPort Airlines staff have • implemented a va riety of strategies to successfully build passenger counts. Enplanements have increased by over 30 percent during the last y Various creative marketing methods (b illboard s, social media and text • messages campaigns) have been used. Travel vouchers in value from $15 to $50 have been used to increase • awareness. The vouchers have gone to members of the general pub and to employers with in-bound or out-bound travel needs. 400 vouchers were distributed to those who donated to the Food for • Flight food drive to benefit the Salina Emergency Aid Food Bank. Over 1,600 canned food items donated. nd SeaPort sponsored its 2 annual Easter Egg Hunt over 500 participants • (up from 250 children in the 2011 event) Several existing businesses are in various stages of implementing and/or Û partial considering growth projects. Here is a list: Exide has begun to hire employees per their announced growth pro • They will be hiring between 100 and 130 people. Exide has identified the need for 100,000 sq. feet of additi onal space. This is • a priority to local management and they are working with corporate leadership. The Salina economic development reviewed multiple buildings and has provided requested support. 9 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 Cameron has identified the need for space to bring a new p roduct to Salina. • The project will generate 100 jobs above premium wage levels. I about the workforce, building needs and financial aspects of loc Salina has been presented to the employer. Dennis Lauver was asked to visit corporate he adquarters to discuss the opportunity and to review the Kansas Department of Commerce incentive package and to review strategie them secure needed employees. Corporate visitors from Texas will tour a specific building in Salina during the last two weeks of July. On 7.9.12, Valmont is scheduled to start exterior painting of their facility. • One manufacturer has requested information about how to implemen • program that will incentivize current employees to recommend fut employees. One manufactur er is considering expansion of their facility in 2013. If they • proceed, that will hire additional people at the premium wage level. The firm considered making the capital improvement in 2012 but has decide until spring 2013 before proceeding. A service related business that works in a manufacturing setting has • with members of the Salina economic development team to understa options to relocate to a larger facility, potentially growing to feet. Great Plains Manufacturing recently announced a capital expansion and • subsequent new jobs. In addition, they have announced an agreem major new customer that will add stability to Salina jobs. Memb Salina economic development provided support in a number of wa ys to the firm. 10 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE E N B A E NHANCE EW USINESS TTRACTION FFORTS Currently, the Director of Economic Development splits work between new business attraction, existing business growth and commercial development. This plan will create a new full time position, beginning in the first quarter of 2008, with the focus to recruit targeted firms to the Salina area in order to create primary jobs and to increase private sector capital investment. This position will also be the main point of contact for retail development activities. The ideal candidate for the position will already be a graduate of the Economic Development Institute (http://edi.ou.edu). The following overriding strategy will support this objective The Director, New Business Attraction & Retail Development will expand efforts to initiate contacts with site consultants, real estate corporate decision makers that are involved in business investme . One activity will be recruitment visits to targeted businesses. This person will continually analyze Salina and develop a recruitment plan to attract targeted businesses. The following strategies will support this objective: Face-to-face visits with regional and national site consultants will be conducted in • targeted markets to introduce Salina. There will be active participation in target-industry trade shows and events with the • State of Kansas, The Salina Airport Authority, utility companies We will develop and implement an enhanced marketing effort specific to the • area. Expanded work with our economic development allies (state govern • companies in particular). Members of the Salina economic development team have worked toge a Û variety of projects. On 6.6.12, Tischlerei announced they are leasing 4 3,638 sq. feet at the Salina • Airport. The firm specializes in cabinet making. On 2.29.12, Universal Forest Products announced they are leasing 15,000 • feet at the Salina Airport. The firm specializes in Industrial Packaging. This has led to supply chain efficiencies for one existing manufactur currently marketing to other local manufacturers. Members of the Salina economic development team have been workin • a developer who proposes to construct a new high quality meet and sleep hotel and conference facility at the Intersection of I-70 and Ninth Street. The Salina economic development team responded to Kansas Departm • Commerce staff working with a major manufacturer about potential location. We expect a site visit to Salina but no visit has been A manufacturer with a major military contract is considering Salina as a • potential location and they have responded positively to the inf 11 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 provid ed by the Salina Airport Authority and K-State Salina. At this point, direction from the top corporate leadership has not been given t operational staff to proceed. The Project Open initiative continues to support start-up businesses. Û 340 different contacts have occurred with entrepreneurs or would be • entrepreneurs 285 Businesses/Individuals have complete d the intake process • 85 Enrolled in Entrepreneur Training • 65 Existing businesses assisted • 33 Concept businesses • 75 Intakes with no further act ion to date • 54 completed business plans • 26 businesses received funding • 45 NEW business start-ups have received some support services • 74 NEW jobs created • Beyond the financial support, over 150 businesses receive some d • business support servic es. 3 Business have completed repayment • 2 Business have received loan adjustments • 2 Business paid their loans off early • Since starting in 2009, the scoreboard of funds awarded is as follows: Û o SEDIC Grant Funds$ 46,563 o Unrestricted Grant Funds $ 5,350 Total PO Grants Awards $51,913 • NCRPC Loan Funds$10,000 • o SDI New Business Loan $ 21,419 o SDI FaŒade Funds$ 4,070 Total SDI Funds$ 25,489 • Total P roject Open Local Leverage$87,402 • Project Open Local Leverage$ 87,402 • o E-Community Loan Fu nds $106,350 o StartUp Kansas Loan Funds$ 24,544 Total Non-Local Loans$130,894 • Total P roject Open Investment$218,296 • Since starting in 2009, the scoreboard of total public and private investment • of busin esses that were awarded funding is as follows: Project Open Funds$218,296 • Private Investment$574,107 • Bank Loans$ 93,000 • Total$885,403 • 12 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 $ 667,107= total amount of Private Investment and Bank Financing $46,562 = SEDIC funds invested to date (other SEDIC funds receiv awarded) For everyone $1 of SEDIC funds invested, there has been $14.32 of investment. (does not include taxes or payroll paid by businesses) 13 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE S R D TIMULATE ETAIL EVELOPMENT Currently, the Chamber’s Director of Economic Development is responsible for new business attraction, existing business expansion/retention efforts in addition to commercial development. Retail development will receive more focus by moving this function to the job description of the Director, New Business Attraction and Retail Development. To maximize the success of the position, appropriate professional development will be secured. Some, but not all, of the coursework at www.ccim/education is appropriate. A three-outcome strategy is appropriate for the Salina area with regards to encouraging development that will attract more retail dollars to the economy in the economy. These outcomes are to be advanced with regards projects that involve existing retail businesses. Outcome # 1 -To identify, assist and encourage retail developers to commit, invest and build new projects and/or invest in existing firms in Salina and/or Saline County in order to generate sales tax income and/or retain those dollars in the economy Outcome #2 -To retain existing and recruit new retailers, restaurants and other sales tax generating businesses compatible with Salina/Saline County’s available land, land use plan and demographics Outcome #3 -To assist landowners in the sale and development of potential retail and commercial sites to their highest and best use To achieve this goal, the City and County will enhance their economic development efforts by working with the Chamber of Commerce (and Salina Downtown Inc. when appropriate) to develop incentive guidelines to promote retention and expansion of existing retailers and to attract new retail businesses. The City/County Commissions shall review any request for incentives. Their decision shall be based upon, but no necessarily limited to, an evaluation of the following criteria, which each applicant will address in narrative format: Criteria # 1 –Employment Impact Criteria # 4 –Competitive Impact Criteria # 2 –Fiscal Impact Criteria # 5 –Retail Market Impact Criteria # 3 –Community Impact Criteria # 6 –But For Test Types of Incentives In essence, a “cafeteria menu” of potential incentives will exist. These guidelines will allow maximum flexibility for the City/County commission in addressing the unique concerns of each proposed retail project while enabling the City/County to better respond to the changing needs of the Salina retail market. Nothing within these guidelines shall simply or suggest that the City/County is under any obligation to provide or deny any incentive to any applicant. 14 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 Potential Retail Development Incentives: • Tax Increment Financing/Star Bonds • Refund/Rebate/Reduce certain fees • Refund/Rebate Sales Tax • Property Tax rebate after rehabilitation of an existing building for retail use • Grants for Infrastructure Development • Transportation Development District • Special Benefit District • Small Retail Business Incentive There are certain requirements that will be included in any of the incentives described above. These include, but are not limited to, the following: • Incentives will be conditioned on the continued occupancy/operation of the project. • Reimbursement provisions may exist to require the applicant to reimburse the City/County in case of non-performance. When the City/County become aware of a retail project, it is appropriate for -specific questions to be answered. As City/County staffs work with the p direct the prospect to the Salina Chamber office. The Chamber will bring relevant other resources (Executive Director of Salina Downtown, Inc. or the Mayor and/or their designee of incorporated cities in Saline County) in the community into the process for working with the project as is appropriate. The Chamber will work with Salina Downtown Inc. and others in Salina to create specific programs and define eligibility for smaller owner-occupied businesses to access incentives that can help their business add jobs, capture lost retail sales tax or add to the sales tax already generated. Preliminar y Application Steps 1.Applicants shall pre-qualify for incentives by completing an "Application for Economic Development Incentive" as provided by the Chamber. 2.The applicant shall address all criteria questions in a letter format by working with the Chamber to complete the “Application for Economic Development Incentive.” 3.The applicant shall complete all forms and information detailed in this policy and submit them to the President, Salina Area Chamber of Commerce. Pending favorable City/County staff review, copies of the complete application package will be provided to the City/County commission. The Salina Chamber will work with the applicant and government staff through the process. Following a review of the written information, the City/County Commissions shall determine whether it is in the best interests of the City/County to offer incentives to the applicant. The State of Kansas recently revised its official methodology to Û pull factor of a trade area. Despite having the pull factor changed from 1.54 to 15 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 1.47, Salina remains the third stron gest pull factor in Kansas. Two Johnson County towns remain ahead of Salina. Interest in Salina has a retail location has increased significa Û months. • Ross Dress for Less has announce d its intentions to construct a 22,000 sq. foot store next to Kohl s. A 2013 opening is planned. • LongHorn Steak House has opened in front of Kohl s • Olive Garden announced plans to open a restaurant in Salina. • Dick s Sporting Goods(40,958 sq. feet), TX Maxx(26,178 sq. feet), and Dress Barn(12,798 sq. feet)been working with the chamber and the City of Salina (they have completed the DRT process) to their 7.13 opening in t vacated by Sutherlands. • Qdoba Mexican Grill has received capital budget app roval to build a new facility in Salina. They are targeting a co-location with Noodles near Central Mall. • Starbucks is working on its plans to open a store in Salina. Th considering a proposal to co-locate in a new facility in Salina that will house two restaurants under one roof. On 6.12.12, a site visit to Sal the intended location. They are now working with the private de land owner. • Kay and Bling are jewelry related businesses have announced they will open Central mall stores, filling vacancies. • Bell Memorials is a regional business will purchase the customer list of a soon to retire competitor. The chamber assisted their property search. • Chamber and city staff worked with Document Resources to locate location for storage of medical records and electronic items that are sla th for destruction. They have leased space at 831 N. 8 Street. • Wal-Mart has determined its preferred site to construct a 40,000 sq. foot grocery store. They are in the process of worki ng with property owners. • Chamber staff has been in early stages of conversations with Hy-Vee about the Salina market. To date, Hy-Vee s interest is not strong. 16 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE E&A R/B S XAMINE DDRESS EGULATORY UILDING ERVICES C ONCERNS The “Commitment to Service Quality” initiative of the City of Salina has been well received and is seen as a positive step forward. We believe that progress toward a system that protects the public and supports business development can continue. The underlying philosophy of “Yes Somehow” is the foundation of continual improvement in the areas We believe the following strategies will of: policy and codes, procedures, and personnel. support high quality business development in a business-friendly manner. Policy & Code Salina needs to continue to stay current with national and internationa • codes to keep pace with national standards. The 2006 International Building Codeand related family of codes are to be reviewed • in their entirety prior to adoption , with public input to be solicited and highly emphasized. Stakeholders are highly encouraged to be integrally involved • in the review of all applicable codes. Procedures The best practices and procedures from other communities shall c • studied and implemented in Salina. It is a priority to continue improvement of the overall code int • with emphasis on quick problem resolution (QPR). It is critical to resolve the differences and inconsistencies in code interpretation raised by city code officials, architects, engineers, contractors and project owners in the shortest timeframe possible. Toward that end: • The City will achieve the goal of limiting/eliminating special conditions placed on building permits that are related to insufficient design submittals. • The City will continue to use special conditions to allow work to proceed when the information will not be available until the construction process is started, or can be effectively submitted and approved at a later date. • The City will review/categorize the special conditions previously issued to identify recurring issues that can be addressed with a review of the process. • On projects where it is appropriate, building services staff will continue to make frequent phased completion site visits, will coordinate visits with all related stakeholders and will coordinate the sharing of inspection results. • Standardized checklists for project plan review and inspections are highly encouraged for all review disciplines, with the inclusion of stakeholder input and the sharing of the final product. • Online permit applications will be developed with reporting and project tracking available via the Internet. We recommend that those initiating a project utilize qualificati-based selection for • design services. Projects should use a project manager to coordinate all activities and 17 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 communications with design and construction teams. In addition, projects should use all City or County provided submittal information and use provided checklists during pre-project planning and design. Personnel It is a priority to encourage City and County staff to develop a • of "Yes Somehow" when dealing with people on development project emphasize Commitment to Service Quality. We strongly encourage continued departmental restructuring and the e • of key development personnel when in the best interest of service quality. • We support and encourage the recruitment of the newly identified Community and Development Services position to help further coordinate development and building services issues. • The development of new strategies to communicate, inform and ass engineers, contractors and project owners will continue. The changes in people, policies and procedures described above have had a Û positive impact. Chamber staff has worked with others to begin perceptions of working with the City of Salina. A series of tes business people with a positive reputation will be used to shape perceptions. The broader Salina Makes Sense campaign to Sell Salina to Salina is the ideal way to position this issue. The first in a series of billboards with the message that it Feels Good to Do • Business in Salina is currently displaye d on South Ohio Street. Other billboards featuring business people are planned for the balance 2013. Radio advertisements are currently in the rotation of local stat • radio ads contain the voice of one of the people on the billboar A graphic that matches the billboard has been combined with the • the radio ad and it is in the rotation of images people see and attending a movie at the Central Mall. 18 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE C O C S REATE THE RGANIZATIONAL APACITY TO UCCEED To maximize the opportunity for success, the following strategies will be implemented: More & Better Research • The current position of Manager, Information Technology will adj Manager, Information Technology and Economic Development Researc . This position will supply the data for analysis by employers and for members of the Salina Economic Development team. By the August 2007, the Salina economic development community a protected database will be operational . This will support and encourage communication and cooperation. Those with access to the database will be able to access a list of employers that can be sorted several ways, such as the following ways: • Status of the business (suspect, prospect, qualified prospect, etc.) • Type of business (distribution, aerospace, retail, etc.) • Preferred location of the business (not known, north end, downtown, airport, etc.) The updated database will have the newest information detailing contact with prospects and the next planned step. The database will be constructed so that when any member of the Salina economic development team updates the listing of a particular business, an email will be sent to all of the partners informing them that the database has been updated. The economic The Salina Chamber maintains the website www.salinakansas.org. development section of the website will undergo significant upgr to provide more and better information such as household income, projected population totals, available buildings and sites, and labor force information important to employers. A Site and Buildings Certification Program will exist to make it is "open for business." Buildings and sites must be “certified” to be posted on the Salina Chamber website or to be shown to a business. A broker, developer or building owner wanting to have a property posted must supply vital site information for the property to be listed. Regulatory clearances must be obtained in advance of sale and conditions of the site must be verified so that construction can begin in 160 days or less. In addition, the Manager, Information Technology and Economic De will be responsible for keeping other building and site database current . The Kansas Department of Commerce maintains a Large and Medium Site Inventory on its website. The State of Kansas also uses the Location One Information Service (LOIS) computer database for a listing of available sites and buildings. The websites of Area Development Magazine, Fast Facility, our utility providers and the Kansas Department of Commerce will be supplied with updated Salina information. 19 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 The job description of the current Executive Assistant position staff support for the two Directors of Existing Business Expansion and Re Director of New Business Attraction & Retail Development . In addition to existing duties, this position will also be responsible for tracking the benchmarks of success and for maintaining a local economic index. In addition, this position will coordinate investor relation activities. This person will work with the entire economic development team to create quarterly information to investors, stakeholders and allies. An “e-newsletter” will be developed to communicate with investors between more traditional bi-monthly communications to investors. An Economic Development Team will develop the package of economic development information and incentives in response to projects . Because the expected response time to employers is much shorter than in the past, a standing team is to be established. We empower the following “economic development team” to quickly develop responses to employers: The City Manager of Salina or his/her designee, the Saline County Administrator or his/her designee, the Director of the Salina Airport Authority, the President of the Salina Area Chamber of Commerce, the Superintendent of USD 305 and his/her designee plus representatives of Westar Energy and Kansas Gas Service. On a case-by-case basis, developers and other individuals such as the Director of Salina Downtown Inc. will become part of the “economic development team.” If workforce development issues are critical to the project, then the appropriate post- secondary educational institutions and State of Kansas officials will be invited to participate. This group will meet on a monthly basis regarding economic development projects. Salina Economic Development Team Monthly Meeting Agenda 1.New Business Attraction Update 2.Existing Business Retention and Expansion Update a.Director #1 b.Director #2 3.Retail Development Update 4.Workforce Development Update 5.Research/Electronic Information Update 6.Investor Relations Update 20 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 A governing group for the Salina Economic Development Strategic Plan will meet quarterly to review progress toward the goals of this plan . The governing group will provide oversight; benchmarking and accountability for plan implementation. The standing members of the governing group will be the following people: The Mayor of Salina or his/her designee, the chair of the Salina County Commission or his/her designee, the board chair of the Salina Airport Authority or his/her designee, the current board chair of the Salina Area Chamber of Commerce, the board chair of Salina Economic Development Corporation and the Chair of the USD 305 Board of Education. Private sector investors in the economic development strategic plan will also be represented on the governing group. The current board chair of the Salina Economic Development Corporation will serve as chair of the governing group. a Workforce Development To reflect the specific emphasis on workforce development, Advisory Committee will be created . The group will consist of two members of the Salina Area Chamber of Commerce Board of Directors, three human resource personnel who are members of the Salina Human Resource Association, a representative from the Kansas Department of Commerce’s Salina Workforce Center, a representative from the Local Area I Workforce Investment Board, a business owner designated as Chair of the committee by the chair of the Salina Chamber of Commerce Board of Directors. The Salina chamber will provide staff support. The committee will meet quarterly to make recommendations regarding strategy consideration, selection, development, timing, improvement and effectiveness. We will commit resources to internally market the new approach t development. We will market the entire economic development strategic plan to existing firms already located in the community. This proactive approach reflects the priority emphasis on working with existing employers. For example, in the case of Salina, this internal marketing effort might occur in the form of billboards with the message “To Help Your Business Grow, Call the Salina Area Chamber of Commerce at 827-9301.” This kind of marketing will increase awareness of the initiative in the minds of existing business owners –and will help stimulate business owner initiated contacts with the chamber. These contacts are all opportunities for business expansion work. Û A group informally known as the Salina Economic Development Coordinating Council has been meeting on a regular basis. The membership of the gro the lead staff person from the City of Salina, Saline County, Salina Chamber of Commerce. The Mayor, the Chair of the County Commiss Chair of the Airport board, plus the past/present/future chamber attend the meeting. In additi on, two other business people from the community participate. • The group encourages cooperation, communication and accountabili implement identified economic development strategies. 21 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 • The group identified ten priorities for 2012 and assigned owners r the tasks. • The group uses a LEAN Manufacturing process and software applica on to ensure project management and accountability. • The identified 2012 area (not in a priority order):   Revised Salina economic development marketing plan   A system to support the development of smaller business via meeting their real estate needs   A comprehensive infrastructure plan   A community based transload facility   Marketing plan to address perceptions about doing business in Sa   The military s economic presence in the Salina region   A plan related to the use of incentives   Providing the financial resources to effectively support identif   Transitioning students from high school into the workforce   Existing business visitation program 22 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE D I E&A T EFINE NDUSTRIAL XPANSION TTRACTION ARGETS Having focused targets will improve our ability to succeed in efforts to grow existing employers and to recruit new jobs and capital investment. Determining targets allows for a more focused approach to economic developmentthat centers on our best opportunities for success. The task force examined the Salina area’s potential for job growth and capital investment by looking at assets such as geographic location, airport facilities, Interstate highway access, work force characteristics, existing industry, educational institutions, available The review of those industrial sites, available incentives and available natural resources. factors confirms that community resources should be directed tow creation andcapital investment from the following target industry list . •• Aviation & Aerospace Metal Fabrication •• Manufacturing Machine Shops •• Logistics, Warehousing and Biotech Distribution To be effective in attracting jobs and investment from these taribility and market study for each targeted industry (with the exception of aviation and aerospace) will be completed . The community shall also proceed ahead with submittal of a Foreign Trade Zone (FTZ) application together with Sedgwick County for the expansion of the General Purpose FTZ # 161 to include 3,518.36 acres of Salina/Saline County. Foreign import and export service providers will be identified and pursued. 23 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE M C&P I AXIMIZE URRENT OTENTIAL NCENTIVES A portion of the quarter-cent local option sales tax funds Salina Economic Development Incentives Council (SEDIC) grants. Most recently, a SEDIC grant assisted Hawker Beechcraft Corporation to add 80 jobs at Salina. The incentive became available in July 2004 is schedule to expire in 2010. The tool of a fund for incentives must be continued. Each of the Salina area targeted industries will be examined by its North American Industrial Classification System (NAICS) codes. The average wage of each industry will be determined. The following strategies reflect the new Salina approach to the use of incentives: State and local incentives will only be made available to those • average wage exceeds the average for its respective NAICS code s . All state and local incentives are available to both existing and new industry. • There will be an aggressive information/communication effort • to inform existing industry about the availability of incentives. State and local incentives will be dependent upon a benefit/cost is that is • greater than 1.0 for The City, the County and USD 305 . SEDIC grants for human capital investment in training and capita • plant, property and equipment should be used to maximum effect and to leverage additional support to secure the project. We believe that SEDIC incentives must continue to be available a • for Salina to be competitive. A working group of Jason Gage, Todd Davidson and Rita Deister ar Û develop specific recommendations about a comprehensive app roach to using incentives. The group has taken the following steps: Prepared an inventory of local incentives currently being utiliz • Considered local incentives currently not being utilized. • Prepared an inventory of state incentives available. • Reviewed business sectors/development types and determined which local in • would best fit each business sector/industry/development type. Reviewed their progress with stakeholders and other taxing entities. • Reviewed the current tax abatement ordinance and d iscussed potential changes to • the details of the existing policy/ordinance. Steps remaining to be taken include: Review the current ordinance/policy with regard to other local i • addition to the tax abatement policy reviewed in above) and disc uss whether modifications to the existing policy are necessary or should be Discuss with Wichita State University the effect new policies would have on benefit- • cost analysis. Conduct a second, more detailed review of our progress with stak ers and other • taxing entities. 24 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 Determine how to finance any additional incentives or expansion • incentive availability. Formalize a preliminary recommendation. • Obtain final approval from stakeholders. • Request agencies establish incentive policie s. • Formalize an application protocol with a single-form application for use in • determining eligibility for all local incentives. 25 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE P D P C/C U RIORITIZE A EFINED LAN FOR ITY OUNTY RBAN S A ERVICE REA Great planning today is the key to job creation and capital investment tomorrow. An important priority is the need to develop a refined plan for a City/County Urban Service Area (1-3 mile area from the city limits). An agreement for cooperation and coordination between the City and County to insure orderlydevelopment of the urban fringe area will enhance the ability to achieve the objectives of this economic development strategic plan. Two specific strategies need to be implemented to achieve this objective: It is recommended that the City and County amend a City/County Urban Service • interlocal government agreement by no later than December 2007 . There are common concerns regarding the accommodation of population growth, commercial development and industrial development. Residential growth and utilization of lands adjacent to the City is of such significance to merit a timely development of an interlocal government agreement. City and County comprehensive development plans must both define • City/County urban development areas . Both comprehensive development plans must adopt the same development standards for City/County urban development areas. Saline County is updating its comprehensive plan to match the Ur Û Area with the City s Urban Service Area. The City Manager is working wi th the county administrator to detail urban service area development st 26 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE O O A A 2010 C C RGANIZE TO BTAIN N CCURATE ENSUS OUNT For Salina, surpassing the 50,000-population threshold is important. Salina will be on the list of potential locations to more retail and industrial site consultants that seek a location for their clients. Furthermore, it will automatically trigger substantial federal government monetary support for community and economic development priorities. To ensure the most accurate population count possible in the 2010 Census, Salina needs to establish a pre-planning strategy, rally the citizens of Salina around the 2010 Census initiative, educate the Salina community regarding direct and indirect Census count benefits, provide both general and strategic outreach efforts to enhance overall Census participation, and establish a framework of best practices to be applied to future Census population counts and estimates. There are several specific strategies to accomplish this objective that will begin in the fall of 2007: A Census 2010 community steering committee will begin its work • to centrally coordinate aspects of the Census count strategy, outreach and community involvement efforts. The committee shall strongly reflect community diversity, community organizations, neighborhoods and leadership. Best practices of demographically diverse communities will be researched • . The information will be used to effectively direct local resources and efforts at proven strategies that will increase the census count. The City of Salina will participate in Census 2010 Local Update • (LUCA) Program -Option 1. Before June 2008, other initiatives will begin. These include: A media awareness campaign will be developed • to ensure the entire community is aware of Census 2010 activities and to provide a means to communicate with residents. Outreach resources will be directed at population groups that ha • undercounted . The outreach will target local churches, stores, public places, homes, post office, organizations, schools, business media and other centers of influence. A complete inventory will be developed to quantify the impact of • 50,000-population threshold. Potential impacts will be explained to show positive community benefits on the following aspects of Salina: • Transportation • Housing • Health Care • Job Creation & Economic Development • Direct benefits to participants • The impact on non-profit and private organizations • Possible neighborhood improvements that would follow a 50,000-population level 27 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 In 2009, several other steps will be implemented by the Census 2010 community steering committee. The most significant step is to provide staffing/contractual coordination of Salina’s Census planning, outreach and response effort. Other 2009 activities are: Committee members will participate in the Census 2010 school edu • to learn Census rules, guidelines and to understand official counting procedures. Methods will be developed to ensure direct involvement • with the highest level of diversity possible A plan to emphasize bi-lingual count participants will be crafted • Neighborhood Fill Out the Form meetings will be formed • to create social gathering with food and entertainment in order to stimulate a maximum count. A plan to directly communicate neighborhood and community benefi • count participation will be implemented Salina will prepare for a formal challenge of the census results • The following steps will be taken: • We will ensure the ability to identify possible undercount and identify the source of the undercount • City staff will become fully educated regarding formal challenge protocol and timeframes • Identify all resources needed to execute formal challenge and prepare anticipated challenge strategies By the fall of 2010, a standard criteria/methodology for developing local population estimates and comparing against Census estimates will be adopted. This will establish a reliable means to estimate community growth and compare against Census population estimates. Working with the Salina Area United Way and the City of Salina, Û numerous volunteers, Salina had one of the highest census partic America. The census bureau did n ot issue a July 2011 population estimate for Salina. Û 28 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 O: BJECTIVE P&C T I G LAN ONSTRUCT HE NFRASTRUCTURE FOR ROWTH In addition to incentives, marketing plans and increased/focused economic development staffing, there are physical and tangible improvements th at will stimulate job creation and capital investment. There are a variety of measures that we believe should be implemented: Salina needs to have an inventory of appropriate market-ready property • . A highly respected national survey of economic development site consultants by Area Development magazine found that “60 percent of consultants said that an immediately available building would be more or equally important to their client’s location decision than any other factor.” We recommend development and implementation of an industrial property • acquisition program to establish a certified development site inventory . Salina needs to have a “property bank” for market ready property. This carries the “certified site” initiative described earlier a step further. A full inventory needs to be completed of all industrial and com • property within the City and in the Urban Service Area. The list will determine the total amount of acreage available for each type of business use, and the availability of adequate infrastructure for classification of property as land available, developable or development-ready, or other similar categories. The inventory will provide information needed to create a detailed strategy regarding property acquisition and infrastructure needs that are in line with projected development demand for various development types in the Salina area. We recommend expanding the use of economic development incentive • infrastructure financing tools traditionally utilized onlyfor new development projects to include redevelopment projectsin strategically targeted priority locations . We new also support using all incentives and financial tools for projects that will exist in undeveloped high-priority sites, particularly those locations that are saddled with development obstacles. This will ensure balanced and proper development in the Salina area. This will reverse the deterioration of commercial areas that follows a shift of public/private investment in other areas. we recommend publicly initiated • For targeted locations and qualifying projects, construction of necessary off-site infrastructure. This should occur in anticipation of development demand and in response to pending development activity. Thus, infrastructure construction will be ahead of development instead of the other way around. 29 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 • To prevent leap-frog development and to more efficiently use limited public we believe that it is a sound planning principle that all commer resources, industrial and residential projects built to urban standards should be within the existing or extended corporate boundaries of the City and with f There will be occasions when projects occur in a location that is well outside the existing or extended boundaries of the City of Salina. At those times, a case-by-case decision should be made regarding the appropriate infrastructure development that should be made for the project to occur. We encourage public funding for the initial cost of extending an • infrastructure to an industrial or commercial development . However, private sector cost sharing and/or repayment of public costs may be needed depending on the type of development, market conditions, local economic impact, expectations of the prospective business, benefit/cost analysis and budgetary constraints. Local government is encouraged to fund the marginal cost of necessary infrastructure by “over sizing” what is essential for a larger development area. The part that does not directly benefit the specific prospect may be subject to reasonable cost recovery. We strongly endorse and support the Salina Airport Authoritys plans related to air • service. The strategy in place will improve overall quality, increase affordability and significantly incre ase utilization. It is important to provide non-Airport Authority public and private sector support to leverage federal funding related to air service improvements. A $350,000 private/public cash match (with in-kind services) is an important step toward supporting a State Affordable Airfares Program grant. we recommend a review to determine the cost of • In cooperation with Westar Energy, burying current and future aboveground utilities to belowground major business corridors. This will enhance the overall aesthetic appeal of major commercial corridors, especially those that are high traffic entrances. We support study possibly establishing reasonable and affordable • building design considerations for new commercial and industrial businesses located along major community entrances . A financial risk index tool needs to be established • in partnership with local financial to assist the public agencies in determining the financial risk professionals applying public infrastructure funding mechanisms (i.e., special assessment, cost recovery tools etc.) to commercial and industrial projects. This tool will ensure that funds are utilized and applied in a prudent manner and that funds are focused on development projects that demonstrate the highest likelihood of long-term success. Local governments need to outline a prudent and reasonable use o • authority to construct basic infrastructure required for commercial and industrial development that is considered to be in the best interest of the Salina economy. • For an economic development project that is being considered for support and consideration shall also be given to determine if the project is incentives, of any natural resource that is considered to bein low supply . A working group of Jason Gage, john Reynolds and Tim Rogers are working to Û develop specific recommendations about infrastructure improvements that will stimulate job creation and capital investment. Their work includes, but is not limite d to the following steps: 30 Salina Saline County Economic Development Strategic Plan nd Program Performance Report 2 Quarter 2012 Conduct an inventory of infrastructure Û Define primary development growth areas Û Match the inventory of available infrastructure to growth areas Û Determine geographically targeted needs and timing Û Formalize final financing and cost r ecovery approaches Û 31