HomeMy WebLinkAboutCouncil Executive- FY07-08 Year End Preformance Reportr
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TO:
FROM:
DATE:
SUBJECT:
Town of Marana
The Honorable Ed Hor�ea �
Gilbert Davidson, Town Ma�t�ger
Joshua Wr�ght, Economic f��velopment Administrator
David Welsh, Senior VP of ��rategic Partnerships
July 8, 2008
2007-2008 Fiscal Year End �erformance Report
TREO has completed its third year of oper�tions. The slowdown in the nation�a
economy has created both challenges-and dpportunities in our quest to accomplish
our mission.
TREO has experienced gains over the pr�vious �rear in the number of both
recruitment and expansion projects; h�w���r, the weaker economy has resulted in
fewer jobs created. Companies are more ��utious and conservative with expansion
plans. Many projects have been dela�ed c�r cancelled. The weakening of the U.S.
dotlar, however, has created significant o�p�ortunities in attracting Foreign Direct
Investment (FDI). Our inquiries from �orei�r� firms, specifically from Europe, have
increased substantially.
The organization has settled into a more �r�dictable pattern as the start-up process
has stabilized. Many of the tasks and req�irements associated with a start up are
eomplete. Most of the cotiateral materials, data development, and program creation
have been accomplished. The processes �nd procedures such as empfoyee
manuals, procurement standards, inrrestr��nt policies, etc., have been developed.
With three years comple#ed and a ba�anc�d budget each year, the financial stability
of TF�EO is significant for a young orc�aniz��ion. The process of building an effective
team is nearly complete. The majorit� of �I�� management team has worked
together for three years and the identifica�i�n of gaps and assets has resulted in a
stabilization of productivity.
Our credibility continu�s to increase due t� performance. On a national and state-
wide basis, TREO is seen as a successful r�odel for regional economic
development. The Tucson region continu�� to be recognized as an economic
development leader for both recruitment ���cesses and strategic planning. This
year TREO was again-recognized via nor�inations, awards, and publica#�ons for
economic development success. On the Ic�al front, TRE4's reputation is gaining
although not at the pace as it has statewi�� or nationally. This is due in part to local
perception of past economic development ��ilures. Increasingly, TREO is in a
leadership position on issues that impact tl�e region involving a variety of topics. A
strong validation of this growing credibility i� the growth and sustainability of the
private sector investment in TREO.
The past fiscal year has been extremely s�t�cessful. Despite the downtum in the
economy, TREO has managed to accom��i�h its mission, compete nationally and
maintain financial stability.
The following is a summary of the major ��omplishmen#s of TREO in fiscal year
2007-2008. Also included are fiscal year ��08-2009 priorities as approved by the
TREO Board of Directors on June 20, 20��. A,udited financial statements for the
fiscal year ended June 30, 2008 will be pr��rided no later than September 30, 2008.
If you have any questions about this inforr��tian, please feel free to contact me.
Hiqh Wage Job Development
Overview
---
Within the framework of the Eco�omic Blu�print, TREO employed a variety af
strategies to create primary or base jobs far the region. The primary ir�itiatives
centered on:
• Business Attraction
•' Business Expansion
� Business Creation
• Business Retention
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TREO continues to aggressively pursue a�portuniti�s wFth a specific focus on the
targeted industries. The targeted industri��, as identified in the Blueprint, represen#
our region's best opportunity to create high�r wage opportunities.
�iiqh��c�hts include:
• Pima County named #1 mid-sized ��unty in U.S. for business recruitment and
attraction by Expansion Managem��tt magazine.
• Attracted 7 new companies:
o Solon America Corporation ��uly 2007)
o Prism Solar (October 2007)
, o Latitude Corp. (October 20��"}
o Stanley, Inc. (December 20�7)
o STG, Inc. (January 2008)
o Stardancer Yachts (January �008)
o Schletter, Inc. (May 2008)
• Expanded/retained 7 companies within the region:
o AFNI, Inc. (August 2007)
o Sanofi-aventis (September ��07)
o Intuit (January 200$)
o Asarco (February 2008)
o Timkin (February 2008)
o Air Systerns Components (��bruary 2008)
o Texas Instruments (April 2�t�$)
Me#rics/Trends
* 40% increase over fiscal year 06-a�" in attractiaNrecruitmen# projects.
� 75% increase over fiscal year 06-��' in expansion/re#en#ion projects.
• Smaller employment associated wit� projects this year, but higher wages.
• 3,572 total jobs impact:
► 986 new primary
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Infr�structure/Capacity D�,��
Overview
Our ability to generate wealth via high-wa�� job development is tied to the
infrastructure/product available. TREt� d��otes significant resources to increase
capacity, improve our product, �nd pmsitiar� our assets to achieve results.
Highliqhts include:
• Developed and �aunched comr�uni�'-wide Blueprint mobilization strategy. A
Mobilization Council consisting of ��+ oXga�izations was launched in January
2008. .
� A comprehensive annual report car� model and methodology was
established. The report card inclu�f�g 60+ indicators af economic health and
competitiveness is due for rel�ase i� October 2008.
• Generated 106 print articles tm sup��rt and promote Tucson economic
developmen# value offerings o� a I��al, regional and national basis. Featured
state and national publications inclt��e:
DATE MAGAZIN� TITLE OF ARTICLE
Aug. 2007 Arizona Bt�sir���s "Arizona Economic Update"
"Hanging taugh: Sou#hern
Dec.-Jan. 07-08 Arizona�Basir���s Arizona's economy keeps
chu . in alon "
°Communi#y Success: Target
Feb.-M�rch 08 Expansion Sol�tions Breaks Ground Jan. 10 at Site of
Target.com Fulfillment Center"
Feb.-March 08 Expansion Sof�tions "Industry News: Stanley lnc."
May 1, 2008 �ptics & Las�er ��rope "Entrepreneurial spirit creates
optical oasis
May-June 2008 Arizona C�mr��rcial ��Rough & Tumble Town"
Real �Estat�
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. ._
• Tucson earned a number of new n�ti�nal rankings. in addi��on to the
Target.com Fu�f�liment Center ran(�Pr�g #8 out of the top 20 Arizona
constructron projects, others includ�.
Jun_
- Me�'s Journal magazine name� "fucson in its Iist of the tap 5 best places
to live. The magazine ranks citi�� based on career opportunities, access
to nature and the quality of urb�t� iife.
Mav 2008
- Newsweek magazine ranked ���IS Charter School as the top public
sc#�ool in the United States. Th�� is the third straight year BASfS has been
hanored with a top 10 ranking.
MSNBC.com ranked Tucson #�� on its list of�the top 100 cities to raise a
family.
A rip •I 2008
- National Geographic Traveler r��gazine named Hacienda del Sol Guest
Ranch, to its first "Stay List" in it� April 2008 issue. The list includes 150
select properties in North Amer ��a offering unique experiences.
March 2008
- Tucson named a"rising biotec�it�ology s#ar of Arizona" by Business
Facilities magazine.
- Fortune Small Business magaz��e named Oro Valley #44 on its list of the
"100 Best Places to Live and L��nch."
- Forbes list of Best Places for Bu�iness and Careers ranks Tucson #49
among the nation's 200 largest �oties. The reg�on was also ranked #27 for
job growth.
December 2007
- Self magazine's 8t" annual "He�lthiest Cities" report ranked Tucson #1
healthiest environment for wor��tn. Ranking 100 cities nationwide, the
magazine's annual report says tf�e combination of clean air, wa#er and
land makes Tucson the most e��-friendly place to be.
�
November 2007
- U.S. News & World Repor� incl��ed two Tucson hi�h schools in its list of
America's top public high s�o�l�: University High School ranked 13� and
BASIS Charter School ranked ��th. �chools were ranked primarily on
achievement levels on stat� a�untability tests, achievem�nt on state
tests for the.school's "least adv��taged" studen#s and college-readiness.
- Tucson was named the 3�-best u digit�l city" for the second year in a row
according to the 2007 Digi��l Ci�1�s Survey. The city's online services and
the wireless network ER-Li�k u��d for emergency telemedicine are
credited for Tucson's ranki�.
- The University of Arizona w�s ��nked one of the top 200 universities in the
world by QS World Univers'rty f��nkings in 2007.
October 2007
- The Wall Street Journal ranked �'ucson among the most popular 13 cities
for adults ages 20-34.
September 2007
- Triathlete magazine ranked Tu��on the second-best city in the world for
training.
Au usq t 2007
- The McGuire Center for Entrepr�neurship at The University of Arizona's
Eller College of Managemer�# v��s ranked among America's "Best
Colleges for Entrepreneurship" ��r Fortune Small Business and
CNNMoney.com.
July 2007
- Fast Com�any magazine nam�1 Tucson among the top 10 in the United
States for job growth and high-��h industry concentration. Noted "Fast
Companies" are Raytheon Mis�i1� Systems, UniSource Energy, and
Universal Avionics.
- In addition to the Pima Cour�ty ��nking, Expansion Management magazine
ranked the City of Tucson #5 rr��c�-sized city in the country for recruitment
and expansion, and overall �ri�na was ranked #1 state for b:usiness
recruitment and expansion.
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����I���� p�l�ci�s �� s�p��r� ��r������ ���y ���is��ti��,
�ISCAL YEAR 20��-2009 PR/OR�1`lE�
What We Do and Whv
TREO's purpose is to synergize and coordirtate aN economic dev�lopment activities
and programs within the region, under on� umbrella. This mission is critical to
reduce duplication of efforts and prioritize limited resources.
With this mission and purpose is mind, TF��:O has developed and adopted an
Economic Blueprint to act as a guide in th� development of a competitive globaf
economy. Within the Blueprint frameworl�, �'RE0 is focused on the following:
• To create opportunities tha# will giv� a greater number of people b�tter
access to wealth through economi� growth.
• To increase the tax base of govem�tent�/comrnunities in order to provide
higher quality services to citizens.
• To diversify the economic base, th��eby cushioning the community agains#
economic shocks.
In the Tucson region, TREO focuses on b��iness attraction, expansion and company
formation as a method to create wealfih far �he region. The region's eight chambers
of commerce and 36 service providers fo��� their efforts on business support
services, workforce assistance, training, n�fworking, educational programs and
advocacy.
Whv Does TREO Focus on Primary Jobs�'
In an effort to create eeonomic opportunity �nd wealth generatian, TREO employs a
series of strategies focused on the creati�r� of primary, or base, jobs. Prim�ry jabs
are de#ined as jobs which produce goods �r�d services in excess of what can be
consumed by the local market. Those go�ds not consumed by the local market are
exported to other markets in exch�nge fo� rnoney, or export income. That exchange
brings new wealth into our community.
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Marana faces $1.3M sewer-line suit I www.azstarnet.com �
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Published: 07.15.2008
Marana faces $1.3M sewer-line suit
Firm that finished project blames data for cost overruns
By ]osh Brodesky
ARIZONA DAILY STAR
The insurance company that had to finish the long-delayed Honea
Heights sewer project after the original builder went bankrupt has
sued Marana in federal court to recover $1.3 million in cost overruns.
More than 13,000 linear feet of sewer lines were supposed to be laid
down by May 2006 for the Honea Heights neighborhood, consisting of
276 homes near West Moore and North Sanders roads. But the sewer
was completed only recently after concerns arose that the soil in the
area was not of good enough quality to backfill the lines.
Those concerns led to delays and cost overruns as work repeatedly
stalled, replacement dirt had to be brought in and the originai
contractor filed for bankruptcy.
The project originally was handled by Pima County — and the lawsuit
erroneously names Pima County — but control of the project was
turned over to Marana last winter along with any liability, said Marc
Natelsky of the Pima County Attorney's Office's civil division.
DID YOU KNOW
Page 1 of 2
Honea Heights, at West Moore and
North Sanders roads, is Marana's
first planned subdivision, created
in the mid-1950s by Ray Honea,
father of current Mayor Ed Honea.
Ray Honea, one of the town's
founders and a member of its first
Town Council in 1977, said he
initially subdivided tlie property
into lots that were just over
19,000 square feet, which he sold
for $300. Many of the streets there
are named for family members or
old-time residents and friends.
Numerous efforts to speak with Marana town attorneys were unsuccessful, although in a phone message,
"Town Attorney Frank Cassidy said his office is handling the suit.
The suit was filed by Iowa-based United Fire & Casualty Co., which bonded the project and is seeking
reimbursement for soii-replacement work it had to pay for after the project's first contractor, Grimm Inc.,
went broke.
Attorneys with United Fire would not comment.
Essentially, United Fire claims Pima County failed to do a comprehensive soil sample, and, in turn, led Grimm
and other bidders to believe the project would cost less than it actually did.
The county's soil report "did not contain enough information to give Grimm and other bidders a reasonable .
expectation of the actual existing soil's condition," the suit says. "By way of example, only two boring test
logs were taken of the 95-acre project site for the entire 13,000 linear feet of sewer main and lateral lines
that were to be installed. Two borings is grossly inadequate and far below the 13 to 26 test borings expected
for a project of this size."
After Grimm filed for bankruptcy, United Fire hired Highland Engineering in November 2006 to finish the
project. Highland, in turn, worked on the project from January through July 2007 before stopping because of
spending limits.
The county then found a third contractor to finish the work, but United Fire filed its notice of claim in January.
To keep the construction going, Marana and the county entered into an agreement to transfer complete
control of the project to Marana in return for having the town assume the liability issues.
DID YOU KNOW
htt.n://www.a7starnet.com/sn/nrintDS/248270 7/15/2008
Page 1 of 1
Rebecca Kunsberg
From: Deb Thalasitis
Sent: Monday, July 21, 2008 9:56 AM
To: Rebecca Kunsberg
Subject: FW: Summer Camp - Estes
For council executive report.
From: Tom Ellis
Sent: Monday, July 21, 2008 9:50 AM
To: Todd Whitehead'
Cc: Deb Thalasitis
Subject: RE: Summer Camp - Estes
Thank you so much for the email. I am happy that your boys had a great experience aE the Estes Summer
I Camp. The Town of Marana is fortunate to have a team committed to providing the best recreation experience for
the community's youth. I'll pass the word on the Ms Olivia and her team. We look forward to serving your family
in the future.
Thanks again,
--Tom
From: Todd Whitehead [mailto:toddandwendyw@comcast.net]
Sent: Saturday, July 19, 2008 1:51 PM
To: Tom Ellis
Subject: Summer Camp - Estes
Just want to let you know that both of my boys attended all sessions at the summer camp.
Your staff was excellent and did a great job.
We will retum again
Kaylee, Edward, Stephanie, Pam, Ms Olivia and I'm sure i'm missing some — were wonderful. Our kids keep
talking about them.
Thank you —
Todd and Wendy Whitehead
(Colin and Jacob)
7/21 /2008