Quarterly Report Fiscal Year 2013-2014 3rd Quarter · GPEC Sales Mission Seattle, WA January 13-14,...

City of Chandler

Economic Development Division

Quarterly Report Fiscal Year 2013-2014 3rd Quarter

INDEX

2 Economic Development Division

June 27, 2014

Table of Contents

INTRODUCTION .............................................................................................. 3

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

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

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

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

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

INTRODUCTION


June 27, 2014

Economic development activity continued on a positive trend during the third quarter. For the quarter ending March 31, 2014, Economic Development staff combined efforts identified 44 leads and 16 prospects, representing an estimated 428 jobs, occupying approximately 316,489 square feet of space and 24.0 million in capital investments.

3rd Quarter Combined Efforts

Retail Industrial/Office Total

Leads 13 31 44

Prospects 8 8 16

Jobs 250 178 428

Square Footage 86,948 229,541 316,489

Capital Investment

$24,012,507 $24,012,507

Retail: During the third quarter, Economic Development Retail staff continues to work with developers, brokers, and shopping center owners on major retail developments while tracking all existing retail centers and tenants, including those projects under construction or planned. Staff continues to work with clients by keeping track of when the construction permits are reviewed and issued.

For Q3, Retail staff participated in the following activities:

Activity Location Date

ICSC Southwest Idea Exchange Phoenix, AZ March 5, 2014

For Q3, Industrial/Office staff participated in the following activities:


GPEC Sales Mission Seattle, WA January 13-14, 2014

GPEC Sales Mission Vancouver, Canada March 6-7, 2014

Tourism staff conducted the following trade and media activities for Q3:


Bay Area Travel Show San Jose, CA January 24-27, 2014

Annual Hotelier Tour Chandler, AZ February 4, 2014

Tourism Stakeholders Meeting Chandler, AZ February 5, 2014

LA Travel and Adventure Show Long Beach, CA February 7-10, 2014

Dallas Media Mission Dallas, TX February 25-26, 2014

Sunny Arizona Media FAM Chandler/ Tempe, AZ February 13-16, 2014

INTRODUCTION


June 27, 2014

Tourism trade and media activities continue…


Sunny Arizona Agent FAM Chandler and Tempe March 6-9, 2014

WACVB Tech Conference Pasadena, CA March 12-14, 2014

Mexico Sales Mission Mexico City and Guadalajara

March 17-21, 2014

In addition to trade and media activities and travel, staff operates the City of Chandler Local Bites; a unique list of restaurants that supports Chandler’s one-of-a-kind dining experiences whether they are independently owned or extraordinarily unique in the market. Downtown: Economic Development Downtown Redevelopment staff continues to work with the merchants to collaborate in advertising and promoting business in Downtown Chandler. Staff coordinated efforts with the Downtown Chandler Community Partnership (DCCP), Arts Commission, Site 8 Parking, Urban Gardening and various Special Events. Disclaimer: Content is intended to provide general information to the public and every effort has been taken to

ensure that the information is accurate. Data is submitted subject to the possibility of errors, omissions and changes,

but is obtained from sources and/or formulas deemed reliable.

ECONOMIC DEVELOPMENT OUTLOOK


June 27, 2014

Locating and expanding quality industrial, commercial, retail, and small business opportunities throughout the City of Chandler and Downtown Chandler are of great importance to Chandler’s future economic impact and it is essential to the City of Chandler’s estimated population of 243,796 citizens and approximated 97,306 housing units located in the City’s borders as of March1, 2014. Economic Development personnel continually update economic data, and demographic

and development trends to maintain current information to better assist clients with their

search for potential development opportunities. The information also aids Economic

Development staff in identifying areas of opportunity and specific gaps and in targeting

retail markets and linkages to key census information, which assists in presenting

available sites.

10

1,010

2,010

3,010

Q1Q2

Q3

150 145 250

1,312

2,962

178

Jobs Created FY 13-14

Retail Jobs

Industrial/Office Jobs

10

200,010

400,010

600,010

Q1Q2

Q3

73,645 83,000 86,948

259,903

587,953

229,541

Square Footage FY 13-14

Retail S.F.

Industrial/Office S.F.

ECONOMIC DEVELOPMENT OUTLOOK


June 27, 2014

Source: City of Chandler, Sales Tax & Licenses

The economic vitality of the City of Chandler relies on job growth and demographic

factors.

The influx of educated workers, sustainable increases in population, higher education

choices and a pro-business record, lay the groundwork for healthy job creation and

employment opportunities.

Source: City of Chandler Planning Division March 1, 2014

Population Growth

Q1 Population

242,115 242,193 242,307

Jul. Aug Sep

Q2 Population

242,406 242,564 242,684

Oct Nov Dec

Q3 Population

243,559 243,694 243,796

Jan Feb Mar

FY 10-11

ECONOMIC TRENDS


June 27, 2014

According to the Arizona Department of Commerce, by the end of Q3, the City of Chandler’s average unemployment rate is 6.3% while the City of Phoenix has a 6.5% unemployment rate and the state of Arizona has a 7.6% unemployment rate.

July Aug Sep Oct Nov Dec

Q1 Q2

1st & 2nd Quarter Unemployment Rate FY 13-14

Arizona

Phoenix

Chandler

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

Jan Feb Mar

Q3

3rd Quarter Unemployment Rate FY 13-14

Arizona

Phoenix

Chandler

Source: Arizona Department of Commerce

ECONOMIC TRENDS


June 27, 2014

Employment occupation data identifies and analyzes total employee counts per

establishment within various industries.

0.2%

16.6%

39.8%

7.7%

27.6% 8.3

Employment By Occupation FY 13-14

Farming, Forestry & Fishing

Service & Occupation

Managerial & Professional Service

Production, Transport, Material Moving

Technical Sales & Administrative Support

Construction, Extraction, MaintenanceSource: Claritas

Q3 Jan. 126,677

Q3 Feb. 127,341

Q3 Mar. 129,220

Chandler's Employment Numbers FY 13-14


ECONOMIC TRENDS


June 27, 2014

During the third quarter, the number of employed citizens shows a slight decrease for the City of Chandler and the state. According to the Arizona Department of Commerce, since last quarter, the City of Chandler loss an average of 555 jobs to its 126,841 total from the previous quarter; a 0.44% decrease.

125,825

125,684

126,667

126,299

127,312

127,318

126,677

127,341

129,220

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

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Q1

Q2

Q3

Employment Comparison: Chandler vs Arizona

FY 13-14

Arizona

Chandler


RETAIL


June 27, 2014

Economic Development Retail staff located three new companies that included one restaurant, and a health club to the City of Chandler.

Specific Q3 Retail Activities:

1. Ocotillo Village Health Clubs Ocotillo Village Health Clubs offers the ideal blend of fitness, fun and relaxation. The health club offers a state-of-the-art facility, premium equipment, and dynamic programing that will take their members to new levels of fitness. Ocotillo Village Health Clubs members can enjoy events and planned gatherings that promote the social side of healthy living. Members can relax and prepare to be pampered at the full service spas that will invigorate their minds and body.

2. Sir Vezas Sir Vezas was started by Raymon Flores, a California man who grew up in a

family that owns one of America’s oldest family-owned Mexican restaurants in

Arizona; El Charro Café. Raymon’s mom, Carlotta Flores is a celebrated

chef-author and their motto is “We Fix Hungry”. Throws in a passion for

American muscle cars & motorcycles learned from Dad and you get a place

built to do Mexican & American street food.

Ocotillo Villages Health Clubs brings a high-end health club to south Chandler along

with approximately 220 full and part time jobs. Sir Vezas represents the backfilling of

the former Rock Tacos location at the south side of Chandler Fashion Center.

Q 1 Q 2 Q 3

Retail Leads & Prospects FY 13-14

Prospects

Leads


RETAIL


June 27, 2014

Re

tail

NAME LOCATION JOBS S.F.

1st Quarter Locates

Cheddar’s Loop 101/Chandler 50 6,600

Villari’s Martial Arts Arizona/Warner 5 5,045

Conn’s Loop 101/Chandler 50 33,000

Earnhardt Chandler Cadillac Gilbert/Loop 202 45 29,000

Re

tail

NAME LOCATION JOBS S.F

2nd Quarter Locates

Firehouse Subs Arizona/Ocotillo 20 1,800

Panera Bread Arizona/Ocotillo 40 4,200

Staybridge Suites McClintock/Chandler 60 75,000

Sonic Arizona/Germann 25 2,000

Re

tail

NAME LOCATION JOBS S.F.

3rd Quarter Locates

Ocotillo Village Health Club Alma School/Ocotillo 220 82,000

Sir Vezas Loop 101/Chandler 30 4,948

Economic Development and job creation accompany one another and job creation

offers ways to advance the economic security of the city’s population.

Staff efforts in this quarter produced 250 new jobs and occupied 86,948 square feet of

retail space. By the end of the 3rd quarter, staff combined efforts created 545 new jobs

and occupied 243,593 square feet of retail space.

150 145

250

Q1 Q2 Q3

Retail Total Jobs Created

FY 13-14

73,645

83,000

86,948

Q1 Q2 Q3

Retail Total Square Feet FY 13-14

INDUSTRIAL & OFFICE


June 27, 2014

Economic Development Industrial and Office staff efforts located seven new companies

to the City of Chandler with a wide range of office and industrial retention and expansion

sites.

Specific Q3 Industrial/Office Activities:

1. Rinchem Company, Inc. Rinchem Company, Inc. was spun off by an Arizona chemical distribution business in 1976. It has transitioned from a two-person supplier of raw materials for paints, to a four-hundred-member team providing chemical management solutions. Richem creates and manages safe and efficient supply chains for high purity, pre-packaged chemicals and gases. Rinchem's transportation and warehousing network are linked through proprietary, web-enabled software that provides customers with real-time visibility into inventory location and status. They field a team of more than 100 hazmat-trained drivers with temperature-controlled, hazmat-customized trucks and trailers. Rinchem services include:

Warehousing Transportation

Training Consulting

Rinchem operates a broad network of temperature-controlled, hazardous materials compliant warehouses at various locations across North America, in parts of Europe, the Middle East, and Asia. The Chandler, Arizona facility provides chemical supply chain logistics and specialty services such as gas storage and management, and clean room services such as dip-tube exchange.

Q 1 Q 2 Q 3

Industrial & Office Leads & Prospects

FY 13-14

Prospects

Leads

INDUSTRIAL & OFFICE


June 27, 2014

2. ASU Innovations Center ASU Innovations Center is an alliance between the City of Chandler and

ASU’s College of Technology and Innovation at the ASU Polytechnic campus,

that converted a 37,000 square-foot city building into a technology-innovation

center. This building will hold up to 1,000 students a year from the university’s

polytechnic campus in Mesa to work with local businesses on research

projects.

The renovated building includes engineering studios and labs where students

will work in teams on projects for companies. The new Chandler Innovation

Center consists of three elements:

Multi-purpose engineering and technology learning studios.

Access to ASU online courses and degrees with assisted learning.

"Proof of Concept” labs to support open innovation and technology

development.

3. Insys Therapeutics Insys Therapeutics is a commercial-state specialty pharmaceutical company that develops and commercializes innovative supportive care products. They have two marketed products, Subsys and Dronabinol SG Capsule, which leverage their sublingual spray drug delivery technology, and dronabinol formulation and manufacturing capabilities, respectively. In March 2012, they launched Subsys, their proprietary sublingual fentanyl spray for breakthrough cancer pain, or BTCP, in opioid-tolerant patients. In December 2011, they also launched Dronabinol SG Capsule, a generic equivalent to Marinol (dronabinol), an approved second-line treatment for chemotherapy-induced nausea and vomiting, or CINV, and anorexia associated with weight loss in patients with AIDS. Insys Therapeutics, lead pipeline product candidate is Dronabinol Oral Solution, a proprietary orally-administered liquid formulation of dronabinol, which would be their second branded supportive care product, if approved. They intend to market Dronabinol Oral Solution and any other future supportive care products, if approved, through their commercial organization.

4. Savage Universal

Savage Universal is a family-run business that began in 1937 as a

manufacturer of quality board and paper products providing photographers

the essential elements for success.

With almost 70 years of manufacturing experience, Savage Universal offers

the following products to their customers:

INDUSTRIAL & OFFICE


June 27, 2014

Photography Backdrops

They make the products that photographers rely on for creating the perfect

backgrounds for virtually every situation from paper and muslin to floor

drop, with amazingly dimensional patterns that look just like the real thing.

Studio Equipment

All of the tools necessary for studio setups of every type and size to

include background stands, umbrellas and reflectors, posing kits, and light

stands.

Tethered Photography Equipment

The airflow line of tech tables by Savage was specifically designed for

photographers joined to their laptop, both on site or in studio. The airflow

line of tech tables system provides a stable base for any laptop to be

securely used, for extended periods.

Mat & Mount Board

When it comes to mounting photographs for display, it is important to use

products that not only enhance images but that also can stand the test of

time.

Savage Universal continues to develop innovative products, especially in the

digital arena, to meet the needs of today’s more diverse photography

community professionals and semi-professionals alike.

5. HiringSolved

Shon Burton created his company HiringSolved out of necessity and a desire

for increased efficiency when he worked for a company in downtown San

Francisco as a team leader for a recruiting firm. At this company, Shon faced

consistent challenge, as he trained each new recruit; the initial time

investment was large, and he was subject to them leaving the company at

any time, taking all of that information with them. In addition, each staff

member spent about 20 hours per week looking through resumes and filtering

through content on LinkedIn. Shon had an epiphany to automate this

recruiting process, and serve it up in a SaaS format. After procuring a co-

founder (Trevor Olson) and relocating to Chandler, Arizona, where he worked

out of Gangplank, he launched the initial product in September 2012.

Today, HiringSolved has over 60 million candidate’s profiles that can be

searched through using filtering features that allows the user to search by

skill, title or location. Once the client finds candidates that fit exactly what they

are looking for, the client can use the candidate’s profile to contact the

candidate via email or phone, all in one site.

https://hiringsolved.com/

http://gangplankhq.com/

https://hiringsolved.com/

INDUSTRIAL & OFFICE


June 27, 2014

6. Patent Law Group The Patent Law Group believes intellectual property (IP) assets should be created to protect against competitors’ use of their clients technology, generate licensing income, leverage strategic partnering, and ensure that the client business can continue to manufacture and sell its product lines, which in turn will improve profitability and increase equity value. Not all IP assets are created equal. Valuable IP assets are those, which truly protect the underlying technology; therefore, the firm takes the care in writing patent claims. They also offer full trademark, copyright, trade secret, unfair competition, mergers and acquisitions due diligence, licensing, agreements, legal opinion, alternate dispute resolution, design-around consultation, as well as litigation support. Patent Law group offers an array of services to assist clients with the protection of their ideas, innovations and identity with particular expertise in the following areas:

The electrical & semiconductor arts

Digital and analog electronic circuit design

Biotechnology Genetics Bioelectrical Biomechanical Medical devices Chemical engineering Refining Biochemistry

Computer science Software Aerospace Communication Electro-mechanical Control systems Manufacturing Business methods Automotive Agricultural products

and technology Alternative energy

7. Clairvoyant (Expansion)

Clairvoyant a tenant at Chandler’s Innovations Science Technology Incubator; enables companies to realize their software product ideas. Whether it is building products for internal customers or for user base, the professionals at Clairvoyant have the expertise and experience in product development and a deep understanding of the technology landscape.

Ind

ustr

ial/O

ffic

e NAME LOCATION JOBS S.F.

CAPITAL INVESTMENT

1st Quarter Locates

Roeshan Systems McClintock & Chandler 2

$0

General Motors Financial McClintock & Santan Fwy 202 1,000 169,903 $20,690,107

Garmin McClintock & Ray 110 60,000 $7,600,000

Oragami Owl Chandler & 54th St 200 30,000 $1,572,353

INDUSTRIAL & OFFICE


June 27, 2014

Ind

ustr

ial/O

ffic

e

NAME LOCATION JOBS S.F. CAPITAL

INVESTMENT

2nd Quarter Locates

Virtual Scientific Chandler Innovations 2

$0

Arizona Nutritional Supplements

56th & Frye 200 126,740 $8,600,000

Alliance Bank Ray & Price 40 27,017 $3,525,000

Black Diamond Advance Technology

Germann & Cooper 70 24,196 $600,075

Wells Fargo Phase II Queen Creek & Price 2,650 410,000 $78,212,796

Ind

ustr

ial/O

ffic

e

NAME LOCATION JOBS S.F. CAPITAL

INVESTMENT

3rd Quarter Locates

Rinchem 56th & Frye 40 79,895 $8,672,852

ASU Innovation Center Frye & Arizona 40 37,000 $6,100,000

Insys Therapeutics Frye & Ellis 25 32,000 $3,840,000

Savage Universal Elliot & Arizona 40 68,971 $5,387,655

HiringSolved Frye & Arizona 12 3,000 $12,000

Pattont Law Group Chandler & Arizona 15 7,500 $0

Clairvoyant (Expansion) Chandler Innovations 6 1,175 $0

Job creation offers ways to advance the economic security of the city’s population while capital investment is a major planning tool in which needed improvements to the City's facilities and infrastructure are identified. In this quarter, Chandler Economic Development staff efforts produced 178 new jobs.

1,312

2,962

178 0

500

1,000

1,500

2,000

2,500

3,000

3,500

Industrial/Office Total Jobs Created

FY 13-14

INDUSTRIAL & OFFICE


June 27, 2014

In Q3, staff efforts occupied approximately 229,541 square feet of industrial and office space, in addition to a projected capital investment of $24 million.

At the end of the 3rd

quarter, staff combined

efforts created 4,452 new

jobs, occupied

approximately 1,077,397

square feet of industrial

and office space and

secured $144.8 million in

capital investment.

259,903

587,953

229,541

Q1 Q2 Q3

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Industrial/Office Total Sqare Feet FY 13-14

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

Q1 Q2 Q3

$29,862,460

$90,937,871

$24,012,507

Capital Investment FY 13-14

TOURISM


June 27, 2014

During the third quarter, Arizona’s mild weather was the exception for much of the

United States this season and Chandler’s tourism market experienced a strong quarter

with a 10.2% growth in occupancy, a $24.57 increase in the ADR and $32.04 increase

in RevPAR representing a 15.2% increase as compared to the same period last year. It

is worth noting that while these gains initially appear significant, that like much of

greater Phoenix, Chandler’s recovery from the recession is slow and steady and we

have yet to reach pre-recession levels, not including the cost of inflation.

In addition to the media and travel agent familiarization trips, staff hosted two travel

journalists this quarter. Staff also assisted the department with hosting a group of

Colombian students visiting Chandler for the Chandler Science Spectacular event.

Smith Travel Research, Inc. (STR) has developed the specific Q3 Chandler and metro

Phoenix hotel industry occupancy, average daily rate (ADR), and revenue per available

room (RevPar) as a custom set for the Chandler market that are represented in the

charts below:

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Q1Q2

Q3

53.8% 64.2%

77.7%

Chandler's Occupancy Rate FY 13-14

TOURISM


June 27, 2014

Metro Phoenix Comparison (FY 13-14)

Q1 Q2 Q3

Occupancy 53.8% 64.2% 77.7% Occupancy 50.4% 58.1% 76.4% Average Daily Rate $84.11 $95.76 $120.33

Chandler

Average Daily Rate $83.74 $106.28 $139.50

Metro Phoenix

Revenue per available room $45.06 $61.51 $93.55 Revenue per available room $42.25 $61.71 $106.54

$84.11 $95.76 $120.33

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

Q1Q2

Q3

$45.06 $61.51

$93.55

Chandler's Hotel RevPar FY 13-14

TOURISM


June 27, 2014

Tourism staff maintains the tourism website, www.visitchandler.com that is featured in each advertisement, brochure, and press release and utilized at trade shows. Staff works with the Chandler Local Bites website, which is a guide to unique and local Chandler eateries & drinks for residents looking for great places to eat or take visitors. Additional information can be obtained on the website, www.Chandlerlocalbites.com or at select locations, local restaurants, hotels, City facilities, and visitor’s bureaus.

http://www.visitchandler.com/

http://www.chandlerlocalbites.com/

Quarterly Report Fiscal Year 2013-2014 3rd Quarter · GPEC Sales Mission Seattle, WA January 13-14,...

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