Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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Vichy Val d’Allier

Despite the difficult economic environment, the VVA Community of Local Communes (CLC) continues the pursuit of its development programme. A number of major projects have already been started. People and institutions are rallying together to improve the territory's performance and competitiveness. A broad range of cultural events regularly take place to satisfy as large a percentage of the population as possible. The quality of the sports equipment and infrastructure is such that major national and international events are regularly being organised. A COMMUNITY TERRITORY 23 communes joined together in 2001 to create the VVA Community of Local Communes (CLC). The group's cohesiveness is based on a shared geographic location, economy, culture and social structure and an enhanced communitarianism with common interests and projects. 1 President, 16 Vice-Presidents elected from 72 Community Councillors, and 250 Community Employees work together for the success of the CLC's projects. A privileged living environment of 320km² with nearly 80,000 inhabitants. The latest projections from INSEE Auvergne, the National Institute for Statistics and Economic Studies, predict an 8% growth in the population by 2040. « All roads lead to … » Vichy Val d’Allier. A near perfect geographic position in the centre of France provides undeniable advantages in terms of road transport, with motorway connections to Paris, Montpellier, Bordeaux and Lyon, and rail transport. Access is further enhanced with Clermont-Ferrand's International Airport only 45 minutes away.

« More than ever, the activities of the VVA CLC, through its Economic Development Agency and Development Service, are extremely

important, not only for our economic and corporate fabric, but also for the people who work here. Even though regular, daily support is

crucial, the emphasis must be on the future to prepare the attractiveness and development of our territory, particularly in the CLC's business

and enterprise parks, such as the Atrium.

For many months now, VVA has been working on the reconversion project for the old Manurhin site at Monpertuis, and have given carte

blanche to the Europan architecture competition for an urban project, with 49 teams of young architects in the running. By the end of 2013 a

winner will be chosen, who will see their project take shape in a place where over many decades hundreds of people worked in heavy industry.

Even though it is still too early to know what sort of activities might be created on this disused but strategically situated site, near the new

motorway link, it must be a major project, reinforcing the economic development of the CLC.

It is always with this strategic perspective in mind that Vichy Val d’Allier participates in the Metropolis project with its

neighbouring Communities of Riom and Clermont, and the ClCs of Issoire and Thiers. By joining our forces, energies, skills

and know-how, together we can build a territory even stronger and more attractive, providing more services to our

inhabitants, companies and the people who work for them. »

Jean-Michel Guerre

President of Vichy Val d'Allier Community of Local Communes

Major road projects Vichy Val d'Allier has made expanding and opening-up the community's road network an absolute priority. The policy is based on finalising the connections to the motorway network, the A72-A89 to Lyon and the A71 and RN7 to Paris, and finishing the ring road around the VVA district. This will not only create the necessary conditions for a more balanced development throughout the community, but also ensure economic competitiveness by serving the different business parks.

www.agglo-vichyvaldallier.fr

Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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Completing these projects will also largely reduce the traffic in a number of areas, particularly by reducing heavy goods vehicles in transit. After many months of preparation, work began last March on the construction of the 14km motorway feeder link from Gannat to Vichy. The APRR (Autoroutes Paris-Rhin-Rhône), the 4th largest motorway group in Europe, estimate that the

project will require a further two years work. The North-East section of the ringroad is part of a real strategy for economic

development. It will provide vehicles with access to the North of the CLC and the community business parks of Ancises at

Creuzier-le-Neuf, and Coquet at Seuillet, as well as Davayat at Saint-Remy-en-Rollat. The future single lane South-West section

will channel traffic coming from Thiers directly towards the RN209, and the entrance to the A71 at Gannat. It will also provide access to the Bioparc business park at Hauterive.

The Urban Boulevard The object of the Urban Boulevard is to: better manage the flow of traffic between the towns of Cusset and Vichy, some 12,000 vehicles per day between the Boulevard des Graves and the Boulevard Denière; ensure the economic development of the community; and facilitate access to major sites such as the Jacques Lacarin Hospital, the Albert-Londres academic campus, and later on the Graves commercial and industrial zones. The first phase should be completed by the end of 2013. The Urban Boulevard will be a normal road, six metres wide with two-way cycle paths, parking areas, wide footpaths and green areas.

The Clermont/Riom/Vichy Metropololis

In order to compete with Europe's largest towns, the CLCs of Clermont-Ferrand, Riom and Vichy, have associated with the

Regional Chamber of Commerce and seven other CLCs to reinforce cooperation: they are the CLCs of Issoire, Limagne Bords

d’Allier, Limagne d’Ennezat, Murs ès Allier, Nord Limagne, Thiers, Volvic Sources et Volcan. This grouping has a global

population of more than 470,000 inhabitants, 20,000 companies, 200,000 jobs, 39,000 students, 2,200 researchers and 18,000

management. The Metropolis will be a union of different bodies, bringing together those partners wishing to create and develop

communal projects in terms of planning and development in areas such as the economy, ecology, education, culture. The

intention is to improve the attractiveness, competitiveness and cohesion of each territory. It should help the Metropolis position

itself in terms of both national and international projects and facilitate joint territorial lobbying. There can be various themes for

joint activities: mobility, economic developments, higher education and research, sport and culture… The idea is to improve the

present situation across the whole of the territory, optimise resources and speak with one voice.

2ND ECONOMIC BASIN IN THE AUVERGNE

One of the particularities and advantages of the Vichy economic basin is its real

diversity in terms of economic activity: plastics processing, packaging, electronics, electrical, metallurgy, automobiles, mechanical, agro-foodstuffs, as well as globally known luxury leather goods and cosmetics. The retail sector and business and personal advisory services complete the economic landscape.

The industrial sector is the second largest in the Auvergne Region and comprises not only a large number of SMEs, but also large companies such as: - Cosmétique Active Production (The L’Oréal Group): cosmetics - CTL Packaging: packaging for cosmetics and plastics - Wavin France: PVC tubes and connectors - Ligier: vehicle manufacturers, petrol and electric engines, with or without a Driving Licence - Valmont France: road lighting and signage materials - Arrivée Auvergne: organic poultry production - Labinal: electric cables for the aeronautics industry - Sofama: leather goods - Satel: call centres - NSE: cabling and integration of electronic systems … Vichy's employment zone covers 120 communes, over 2,076 km2 with 131,481 inhabitants.

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Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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The Lardy University Technical College :

covers 9,000 m2

has 15 computer rooms

43 classrooms

a 150 seat lecture theatre

4 multimedia language laboratories

a TV studio

a radio studio

and a video studio

The territory has 12 business parks to welcome companies, some of which have particular themes. The Bioparc specialises in welcoming companies from the health, fitness, beauty and bio-medical sectors. The Atrium René-Bardet business centre, opened in 2008, now houses more than twenty companies primarily from the service sector.

The interesting thing about this building is that, originally, it was a Vichy water bottling plant, and the architects have kept the original structure. It now has more than 6,000m² of office space and meeting rooms available, with a reception area and nursery. Being near to Vichy railway station's intermodal transport hub makes the centre a strategic location.

Since 1937 the Montpertuis-Palazol site had been home to the company Manurhin Défense, a subsidiary of GIAT Industries, specialising in the production of munitions. The company closed down in 2006, since when the site has undergone substantial de-contamination work which should end in 2015. The conversion of the site will provide a major benefit to the economic development of the CLC: it is part of the 2013 Europan programme, being the 12

th edition of this

European architecture competition. A CAMPUS IN THE HEART OF THE COMMUNITY

Developing higher education for a medium sized town provides considerable advantages: being part of the knowledge economy, opening new perspectives for economic development, reinforcing the attractiveness of the territory. With nearly 2,300 students, 10 higher education sites and 50 pluridisciplinary courses, the Vichy Val d'Allier CLC is the second largest university site in the Auvergne. The Albert-Londres campus, inaugurated in 2012, has a number of major strengths. From the Pôle Universitaire Lardy (Lardy University Technical College) to the CREPS (Centre de Ressources, d’Expertise et de Performance Sportive- Sports Management College), the IEQT (Institut Européen de la Qualité Totale-European Institure for Total Quality Management), the IFMK (Institut de

Formation en Masso-Kinésithérapie-Masso-Kinesitherapy Institute), the IFSI (Institut de Formation en Soins Infirmiers-Nursing School), the Lycée Valéry-Larbaud (Senior School),the Lycée Privé d’enseignement supérieur de Vichy (Senior School), the Cité scolaire Albert-Londres, (Senior School campus), the Ecole des Métiers du Bâtiment (Building and Construction School) and the CAVILAM (Centre d’Approches Vivantes de Langues et des Médias-Language School), providing students with quality education and training in an attractive environment, with the added advantages of partnerships with companies and institutions, both local and international. Since the doubling of the size of the Lardy University Technical College in 2009, the CLS endeavours to provide students with a functional and agreeable standard of living.

In 2014, the CAVILAM will celebrate its 50th birthday: the language school has a reputation for excellence teaching French and is known throughout the world. The school has been awarded the «Qualité FLE» label by the French Government for teaching French to non-native speakers of the language. In 2012 it meant: 3,750 foreign students registered with 127 different nationalities; 17,019 weeks of courses paid for representing 120,000 overnight stays; 460 host families; 230 private furnished lodgings and an economic benefit to the Vichy basin estimated at 10 million Euros. The CAVILAM makes a positive participation to Vichy's reputation around the world. It is also worth noting that Vichy's Masso-Kinesitherapy Institute is one of the oldest such schools in France, created on 8 February 1941. The QUALIDEV resource centre is a place where students and teachers can discover and obtain up-to-date information and documentation concerning local, national and international problems of Quality Assurance, Security, the Environment and Sustainable Development.

There is a real desire to provide specialised higher education in a number of specific sectors and to encourage new courses in the same direction, enhancing the chosen image of the CLC. Furthermore, the CLC is fully conscious of the challenge of revitalising the territory and has taken an approach which involves local partners, companies and institutions to bring more awareness of the presence and development of the university courses on offer at the Lardy College.

Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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A TERRITORY FOR SPORT

With more than 300 sports associations, 31 sports sites and more than 60 different installations, the CLC is recognised as one of the most attractive sports destinations in France, hosting both national and international events. The territory of Vichy Val d'Allier is home to the largest sports economy platform in one place in the whole of France covering a 500 hectare site: with the Omnisports Sports Complex, the widened river Allier, the CREPS Vichy-Auvergne Sports Management College, two 18 hole golf courses with the Vichy Sporting Club and Montpensier, a renowned racecourse, a sports complex with accommodation, the Stade Aquatique swimming centre and the Sporting Tennis club.

The 120 hectares of green and wooded area of the Omnisports Sports Complex alongside the widened river Allier, the Lac d'Allier, provide indoor and outdoor facilities for more than 60 different sporting activities. The local, mythical basketball team, the JAV, play in the Pierre Coulon sports centre. The 100 hectares of open water of the Lac d’Allier provide a venue for all types of water sports, and hosts major competitions in rowing, motorised water sports and water skiing. Last summer's 3rd edition of the Vichy Challenge triathlon also welcomed the European Championships.

The Stade Aquatique swimming centre is one of the major sporting facilities in the area, with competitions, meetings, training sessions and professional training camps occurring on a regular basis. After Michael Phelps and the American Olympic Swimming Team in 2012, this year the Stade Aquatique will host the 7th edition of the French Open Swimming Competition on 6th and 7th July. More than 250 swimmers, including the best French swimmers, such as Florent Manaudou, Camille Muffat, Yannick Agnel… will participate in the competition at Bellerive-sur-Allier.

The Vichy Charmeil aerodrome is a real multi-activity platform: with private business flights in all types of aircraft, it also has a year round programme of different events for the general public, such as skydiving and parachuting, dragster racing, and a meeting for amateur aircraft constructors and their aircraft in July... Sport has become an economic activity in its own right. Currently the sector generates the largest number of overnight stays, with 100,000 and the largest contribution to the local economy with around 5.5 million Euros. (Source : economic study for sport in the Vichy basin - 2011)

The equine industry in the Local Community

The territory of Vichy Val d’Allier has a long and privileged history with horses, and some of the facilities which date back to the 19th century bear witness to this enthusiastic relationship. The Vichy-Bellerive racecourse was created in 1875, and each year organises 40 meetings from May to September with more than 300 races PMU certified for off-course betting. The Chasse et de la Femme evening meeting held every other year, attracts between 8 to 10,000 racegoers. The highlights of the season are the Trotting Festival and the Grand Flat Racing Week during July. For the first time outside of Paris, in Province, the 14 July "quinté", a handicap where betting wise you have to find the first 5 in the race, will take place at Vichy. 250m Euros of bets are placed by punters across France. The local economy benefits directly from the race meetings, with on average 4,000 overnight stays in local accommodation and nearly 30,000 meals each season. Situated in the heart of Vichy, the Stade Equestre du Sichon show jumping stadium has the particularity of being one of the last grass courses in Europe. Because of its long tradition for equestrian sports, the stadium has had international notoriety for a long time. It holds regional, national and international competitions, such as the Jumping International which each year welcomes more than 250 horses and 80 horse-boxes from over twenty different countries. The Sichon also organises pro1 and European Symposium show jumping events. The equine industry also means riding stables (Le Vernet, Saint-Germain-des-Fossés, Saint-Rémy-en-Rollat, Brugheas…), large stud farms, one of which won the Grand Prix d’Amérique with one of their horses, and pedigree horses. Mylord Carthago, one of the best French stallions was bred in Vichy. Kellemoi de Pepita, a mare bred at Riom and ridden internationally with the best French rider, MIchel Robert, was sold for an astronomical price to a Qatari owner. Five breeders in the Allier are amongst the top ten in France. Nicolas de Lageneste whose haras is at Saint-Voir, is the number one breeder in France for jumper horses. Emmanuel Clayeux from Vaumas, is the 7th best trainer in France. The Auvergne is the 1st region in France for breeding dray horses.

Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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TOURISM and THERMALISM

The CLC benefits from an important and interesting cultural and historical heritage. The Art Nouveau Vichy Opera house is

unique in France. The Centre Culturel Valéry Larbaud cultural centre, the theatre at Cusset and the Geyser at Bellerive-sur-Allier

propose quality cultural events all year round. The chateaux of Billy and Busset, the romanesque church at Bost, the Tour

Prisonnière-female prisoners' tower at Cusset, the 380km of country paths, the festival "Cour du Soir" at Cusset, the "les Jeudis

de Vichy" on a Thursday evening, the Vichy Opera museum and the African and Asian Arts museum and many others… provide a

substantial number of cultural tourist destinations. The 15th edition of the Star Wars Festival at Cusset was marked by the

presence of the British Actor David Prowse who played Darth Vader in the first episodes of the saga produced by George Lucas.

The CLC concentrates on outdoor activities and welcomes anyone interested in the open-air, countryside, nature and well-being:

there are more than 1,500 places available in hotels, furnished accommodation, holiday homes and bed & breakfasts.

In terms of business tourism, the Palais des Congrès-Opéra situated in the centre of Vichy benefits from an environment unique

in France, offering a variety of ambiences and a voyage through the Second Empire, the “Belle Epoque" from 1871 to 1914, and

modernism. It has a modulable area of 18,000m2 split between two conference halls and fifteen meeting rooms. Another similar

facility is the Palais du Lac at Bellerive-sur-Allier, which has a multifunctional and modulable 2,000m2 area along the riverside.

Business tourism, whether for a congress, seminar, national or international general assembly or trade fair, generates 75,000

overnight stays in local accommodation each year.

Thermalism - Although Vichy is known for its pastilles and red and

white checked fabric, the town owes its existence to its spa waters. It

was Napoleon III in 1852, who decided to elevate Vichy to the rank of

a modern spa town by creating the sumptuous parks along the banks

of the river Allier, building a casino, boutiques, chalets, and a railway

station...

Eleven natural springs whose beneficial effects for digestion, joint

pain and skin care have been know since antiquity: the Vichy basin

has a number of well known spa centres which create its spa heritage,

including the Vichy Spa Hotel les Celestins ***** which has the

largest spa centre in Europe .

Vichy is considered one of the most modern spa resorts in Europe, offering a range of services from traditional spa treatment to

a personalised fitness and health plan.

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The ALLIER, a Departement on a human scale

With 343,114 inhabitants (INSEE), being 0.63% of the French population, and an employment market of 131,600 jobs, the Allier confirms its position as the second most important Departement in the Auvergne. There is not just one economic centre, but three main urban areas, with each one supporting a part of the territory. The Préfecture of the Département is at Moulins, which has an historical quarter dating back to the 15th century. The Sub-préfectures are located in the towns of Montluçon, a medieval town dominated by its chateau, and Vichy, an important spa town. The reduction in population experienced since the 1970s had been virtually reconstituted by virtue of the efforts made to improve the attractiveness of the departement. After a number of very pessimistic years, when the experts predicted that the Allier would go the same way as the Creuse and become deserted, the more

recent statistics provided by INSEE Auvergne are much more optimistic. The population of the Allier is characterised by a decrease in the number of inhabitants in the town centres and an increase in the suburbs. The majority of the other communes in the three major CLCs show a growth in their populations due mainly to the increase of suburban sprawl. - 65th Departement by population in mainland France - Geographic Area: 7,340km² - 320 Communes - 3 major urban areas: Vichy, Moulins and Montluçon - 7 natural regions - the forest of Tronçais: the largest oak forest in France - 130km from East to West - 90km from North to South The Dukes of Bourbon left their marks on the Allier, a department full of rivers, hedges, trees, little fields and small mountains. It takes its name from one of the last wild rivers left in Europe, which cuts through it. The Allier is a land of history and culture, set apart by its 574 chateaux and country houses, more than 300 religious sites, including some real romanesque treasures, and the number and variety of its museums. The Pal, a well know animal park created in 1973 in the commune of Dompierre-sur-Besbre, is the leading tourist attraction in the Auvergne. Its 35 hectares have 25 rides and attractions and more than 600 animals in semi-liberty. Paléopolis at Gannat was created by the Conseil Général de l’Allier (county council) as an educational theme park on the prehistoric period and animals, and has the famous French palaeontologist, Yves Coppens as its patron. The economy of the Allier

Promoting innovation, encouraging new initiatives, reinforcing exchanges and partnerships, supporting companies to work together, facilitating the creation of enterprise clubs... are the convictions of the different economic actors in the territory. It is in this spirit that the Allier has participated in various trade fairs, such as SITL the Salon International du Transport et de la Logistique (transport and logistics), SIMI, the Salon de l'Immobilier d'entreprise (professional real estate), Stratégie Clients (customer relations and direct marketing) etc.. The agricultural vocation of the Departement is still strong, based on producing quality products, which makes the agro-foodstuffs sector a major contributor to the Departement's

economy, The Allier counts several label awards for meat production, as well as AOC attributions for poultry and wine. The Allier has its own industrial specificity, with manufacturing based on an industrial fabric of some 14,800 particularly dynamic and innovative SMEs: (Thevenet, Desamais, ITM Intermarché, Saint-Yorre and Vichy Celestins mineral waters (Castel Group),the pharmaceutical laboratories BOUCHARA RECORDATI, ADISSEO and UNITHER, world leader in the production of sterile unidoses…) reinforced by the presence of a number of international groups: L'Oréal, Louis Vuitton, Sagem-Safran, Peugeot, Bosch, Wavin, Dunlop-Goodyear, Potain-Manitowoc, CTL-Tuboplast Hispania, SCBV-Castel, S2MI-Carrefour...

The Allier's economy is based on a number of centres of competence and excellence: Logistics; Mechanical; Electronics and metalworking; Health-beauty-fitness; Plastics and chemicals processing; Agriculture and agro-foodstuffs; Wood and wood products and Information Technology and Communications. The Allier has two specific business parks specialising in health products and activities: the Bioparc Vichy for companies in the Health-Beauty-Fitness and Biomedical sectors, and the Parc Naturopôle Nutrition Santé which has the accreditation of being a rural centre of excellence (Pôle d'excellence Rurale) for companies in the sectors of natural and organic products and nutrition and health.

Economic assessment : executive summary Vichy Val d'Allier – 2013/2014

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THE AUVERGNE

Full of history but resolutely turned towards the future, the Auvergne offers an alliance between modernity and tradition. The landscapes of volcanoes and mountains, open air activities, spa towns and towns at the cutting edge of technology, are undeniably formidable strengths for the region. On 1 January 2010, the Auvergne had precisely 1,347,593 inhabitants, being 2.1 % of the population of mainland France. The population decreased between 1982 and 1999, but has since increased by 38,500 inhabitants with an average growth rate of 0.3% each year. At a time when individual careers require more job mobility, the attractiveness of the Auvergne is the principal reason in this demographic rebound. Between 1999 and 2010, 71% of the communes in the Auvergne recorded more arrivals than departures, compared with 56% between 1982 and 1999. INSEE projects that by 2040 the Auvergne will see its population increase by 100,007 to 1,447,600.

The Departement of the Puy-de-Dôme has 632,311 inhabitants being 47% of the regional population (INSEE 2010).

The numerous festivals organised around world cultures and traditions are witness to the new dynamic of the Auvergne. The more remote parts of the territory and the regional natural parks provide a welcome change for the population with a mix of ecotourism and sustainable tourism. Situated at the heart of the Chaîne des Puys volcanoes in the Volcans d’Auvergne Regional Park, Vulcania is a scientific and cultural centre specialising on volcanism. Vulcania is a unique theme park, dug deep into the volcanic rock, with three quarters of the attractions underground, and an architecture which is both modern and discrete to blend into its surrounding environment. Inaugurated in 2012, the Panoramique des Dômes is a rack and pinion mountain railway, 5.1km long, which provides access to the summit of the Puy-de-Dôme large lava dome volcano. The train can carry 1,200 passengers every hour.

Auvergne Nouveau Monde brings together all the region's economic actors, institutions, cultural actors, tourist professionals and civil associations who share the same goal: working together to make the Auvergne more attractive. Like Copenhagen, Amsterdam, Switzerland and Louisiana, the Auvergne wants to build its attractiveness by using the marketing tools already present in the territory and the energy of all those who want to make a contribution. Reinforcing the Auvergne's attractiveness means the region has to be more visible, perform better than the competition, and assert its values and personality. The quality of life in the Auvergne has a certain number of indicators which help attract new businesses and start-ups: the real motor of the regional economy. To welcome new inhabitants to

the Auvergne, we need two things: to be sufficiently attractive and have the pertinent and efficient tools to accompany them when they arrive. These are the two missions that the Agence Régionale de Développement des Territoires d’Auvergne, the Regional Development Agency, have been concentrating on since 2006. Résidences d’entrepreneurs (Entrepreneur residencies) - 1,100 start-ups and entrepreneurs have been supported and accompanied by the territories in the Auvergne, Chambers of Commerce and the ARDTA. Entrepreneur residencies help the future business creator or purchaser succeed with their chosen professional project based in the Auvergne. Travel and accommodation costs and a monthly living allowance can be provided during the initial project period. 64% of residencies have had a successful conclusion 88% of the beneficiaries were not from the Auvergne (source : ARDTA). Author Céline Faulconnier-Bizouarn