2017 Annual Report
Director’s Message Dear Stakeholders, 2017 was a difficult year for Charlottesville, Virginia. Perhaps the most challenging in the City’s more than two hundred and fifty year history. As the City Council wrestled with the difficult issue of how to handle confederate memorials in public spaces, the City became a focal point for a variety of interest groups culminating in the August rally which turned violent and tragically resulted in several deaths. While the Office of Economic Development did not have a role in the planning, permitting, policing or other aspects of the actual summer events, we are involved in the efforts to recover. Given the extensive national and local news coverage of these events and the aftermath, the perception of Charlottesville for some has certainly changed. In our role encouraging capital investment and helping business formation we are concerned about this and we continue to speak to the positive attributes of doing business here. But more importantly, the root cause of the discontent here and elsewhere in the country has to do with opportunity, or the lack thereof. As a catalyst for employment opportunities and a vibrant economy - we realize that our efforts can help. We are, after all, in the “opportunity” business. Helping create and connect people and businesses to opportunities is good for the City and its residents. Our continued efforts to train and prepare residents for meaningful work are a critical piece of the puzzle. We are proud to play that role and hope it can be part of the healing process for the community and perhaps even a model for others. Please read further for a better understanding of all our activities and their impacts throughout the past year. Thank you for your continued support. Sincerely,
Chris Engel Chris Engel Director, Office of Economic Development
Photo courtesy of Joe Rice Cover photo courtesy of Joe Rice—Draftsman Hotel on West Main Street
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Capital Investment Building partnerships with private sector groups in order to maximize capital investment in the City
Three Notch’d Brewing Three Notch’d recently committed to its Charlottesville future by investing $3 million dollars into a new brewery and restaurant facility in the IX Park, just off the Downtown Mall. To assist this growing company, the Office of Economic Development (OED) and the Charlottesville Economic Development Authority (CEDA) supported Three Notch’d with a $50,000 matching grant as part of the Governor of Virginia’s Agriculture and Forestry Industries Development Fund. This fund supports businesses using Virginia products as agricultural inputs to the company’s final product. OED staff also worked alongside Three Notch’d staff to ensure construction was completed in time for the Virginia Craft Brewers Festival – a statewide celebration of the burgeoning Virginia craft brewing industry. While the use of Virginia grown products will have a positive impact statewide, the local impact will be beneficial as Three Notch’d is able to increase volume for its growing demand. “Our new facility has given us the opportunity to better meet the needs of the Virginia craft beer community. Our new space will allow us to quadruple in annual volume production, making it possible for us to expand distribution into the Tidewater area and more in Northern Virginia. We can also introduce brand new packages we never could before. We are now offering our 40 Mile IPA, Ghost APA and Minute Man IPA in 12-ounce glass bottles along with a variety 12-pack and variety 24-pack.” - Dave Warwick, Head Brewer, Three Notch’d
Photo by Jillian Regan
Hotel Development The hospitality sector in the Charlottesville-Albemarle area produces over $600 million in annual visitor spending and supports over 5,000 jobs. That, combined with a hotel occupancy rate of 70+% for several years running, draws significant attention in the industry. This helps explain why three new hotels with 360 rooms are under construction in the City as we enter 2018. This is in addition to the 300 rooms already added to the market in the past 3 years and the 150 more in the development pipeline. The additional room capacity will help fuel the local economy and generate revenue to support local government services for years to come.
The City issued 574 commercial permits in 2017 with a total investment value of $88,658,778.
Astraea An important sector in the City’s business economy is the growing and vibrant technology sector. Identifying and retaining these high-growth companies helps solidify the Charlottesville tax base to support all aspects of our community. One way the OED strives to meet this goal is by creating a local match for the Virginia Jobs Investment Program (VJIP) to clearly identify these high-growth companies in the City. In 2017, Astraea announced a $1 million dollar capital investment in the City of Charlottesville and made plans to create 31 new jobs with an average hourly wage of over $55. OED staff worked with state officials and the Governor’s Office to secure funding to assist Astraea’s growth in Charlottesville.
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Business Development Creating an entrepreneurial environment where start-ups thrive & existing businesses have opportunity
Business Visitation Program The OED’s business outreach program continues to be a vital and important conduit that links local government with the business community, new opportunities, and community resources. Additionally, the business visitation program aims to connect businesses to several OED programs targeted to strengthen City businesses.
GO Hire The City has targeted assisting City businesses with their workforce needs. The GO Hire program helps businesses looking to hire new staff with wage subsidies for City residents and also helps create and support training programs for incumbent employees. These training programs are industry specific and often identified by each business to help the company become more efficient. In 2017, GO Hire served seven businesses and twenty employees. “GO Hire wage subsidy program is a miracle! It gave us the opportunity to fully train our product manager and spend as many hours as needed on learning a new skill. For a small family-owned company as ours, hiring new employees is always a stress; mostly because of the financial part. Training takes a long time and it's expensive. GO Hire has helped tremendously - with educated, trained, confident employees who are comfortable at their workplace, we are getting more successful as a company and can contribute more, giving back to the city we love.� -Alisa & Daniel Foytik, RSVPhandcrafted
Photo by Sarah Donahoo Photography
ACE Program Served
81 Businesses
Awarded $180K
GO Hire
VJIP Match
24 Businesses Enrolled
204 Jobs Created
60 Employees Served
Combined Capital Investment of $8.6M
ACE Program The OED’s unique business assistance program, the Advancing Charlottesville Entrepreneurs (ACE) Program, has assisted more than 70 businesses over the course of the last five years. This competitive grant program was fully funded by the Charlottesville Economic Development Authority in 2017 and continued to award micro grants to eligible businesses. These grants are used for advertising, equipment, and supplies; and the goal of the ACE program remains the same – helping City businesses increase revenue and capacity.
“As a BIG dreamer in a small city with a small business idea, chances can seem slim to none for an aspiring urban designer with two kids and two jobs. But with the encouragement and capital boost from the (OED) ACE Program, I am creating local urban fashion for the community and engaging in the retail industry worldwide!” -Whitmore Merrick, Kustom Kreations
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Workforce Development Fostering an environment that provides career ladder employment opportunities for Charlottesville citizens
Downtown Job Center Now in its fourth year of operation, the Downtown Job Center (DJC) continues to assist area job seekers by offering employment services such as job search assistance, help completing employment applications, resume review and creation, and mock interviewing. The DJC also administers the GO Ride transportation assistance program that provides subsidized bus passes to City residents to be able to get to and from work. It also serves as the point of contact for recruiting participants in the City’s GO training programs and is home to BankOn of Greater Charlottesville. In 2017, there was an increased demand from local employers to help find candidates for employment. Two large shopping centers helped to contribute to that demand; the Shops at Stonefield continued to be developed, and the stores at 5th Street Station opened in 2017. With all of these new businesses opening, there was an increased demand for employees in an area with an already low unemployment rate. Also, 2017 saw an increase in the number of GO training programs offered during the calendar year. There were three cohorts of GO Driver and one cohort each of GO Utilities and GO GED Pathways. Additionally, DJC staff participated in and hosted vari o u s j ob fair s an d c u st o mi ze d h i ri n g ev ent s in 20 17 including the Piedmont Virginia Community College (PVCC) Job Fair, the Charlottesville Community Job Fair, and the Veteran and Community Job Fair.
2017 Downtown Job Center Stats 481
231
213
127
# of Intake Forms Completed*
# of Cville Visitors
# Receiving Job Search Help
# Receiving Resume Help
*This number does not include general inquiries not requiring the completion of an intake form.
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GO GED Pathways With new funding from the City Council, GO GED Pathways was added to the Downtown Job Center’s Growing Opportunities programming in 2017. The program, which was 60 hours in length, used an integrated education and training model whereby participants received math and science GED preparation through healthcare training. As part of the training, students learned about the human body’s cardiovascular, respiratory, digestive, and skeletal systems. They also received their CPR, First Aid, and AED certification through the American Red Cross. Five City residents graduated from the program that was held at the Greenstone on 5th Community Center. Several of the students are continuing their GED training through the Adult Learning Center. In an effort to provide job seekers more educational opportunities that will allow them to further their career aspirations, another GO GED Pathways program and a GO GED Fast Track program will be held in Spring 2018.
GO Utilities Based on the success of the GO program model, GO Utilities was initiated in 2017 with four City residents completing a six-week training program that provided instruction in pipefitting, OSHA 10, flagging, commercial driving, and workplace readiness. The graduates were hired by the City of Charlottesville Division of Public Utilities as full-time with benefits, level three Maintenance Technicians. Each of the employees have been promoted to level two Maintenance Technicians and three recently began their plumbing apprenticeship through Charlottesville Albemarle Technical Education Center (CATEC). “My experience going through the GO Utilities program was very enjoyable and has been beneficial for me. I participated in six weeks of training and I was able to get my CDL learners permit and then my CDL license through continued on-the-job training once I was hired to work for the City of Charlottesville’s Public Works Department. The GO Utilities program prepared me for employment by teaching me about the basic tools used by Public Works’ maintenance workers and what to expect day to day on the job. I have been working for the City for nine months now and I love coming to work and learning something new each and every day. My advice for anyone considering the GO training programs is to give the programs a try. With the training and assistance you receive you will be able to get a job. It’s a win-win for everyone involved as long as you put in the effort in the classroom and are serious about your career. My life has changed as a result of the program and I am able to do so much more. I am able to take more trips and I am saving money to be able to buy my own house which is my goal in a couple of years. T h e G O U t i l i t i e s p r o g r a m w a s a n opportunity of a lifetime; I promise I am going climb to the top. Thanks a lot!” -Raejon Curry, GO Utilities Graduate & City of Charlottesville Public Works Employee
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Special Projects Working with internal and external partners on special projects that further the City’s economic goals
Made In Charlottesville Made in Charlottesville(MIC) is a program created by the Office of Economic Development in 2017 to showcase the vibrant and unique businesses in Charlottesville. It aligns with our mission of growing and retaining businesses through a creative platform to showcase the makers and manufacturers in the City. It is, nationally, one of the few local campaigns to be run by a municipal government. MIC has quickly evolved into an opportunity for business networking and collaboration as well as an opportunity for OED to share its resources with City businesses. Currently there are 70 businesses in the program, and over 1,000 followers on social media.
“A customer at Found. first told us about Made In Charlottesville and encouraged us to reach out on behalf of our shortbread cookies. Getting involved with MIC, and thus the Office of Economic Development, has advanced our resources more than anticipated. From meeting and collaborating with other local businesses of MIC, to accepting an ACE Micro Grant from OED, we feel more and more supported by the community. As a small family business, networking opportunities are imperative, and MIC continues to offer fun and engaging events to expose locally made products to the wonderful people o f C h ar l o t t e s vi l l e . W e a re s o gr at e f u l fo r t he i r efforts.� -Kelsey Gillan, Found. Market Co.
“We are so grateful that we could take part in the events organized by Made In Charlottesville it really helped to meet other like-minded business owners, make useful connections and share our knowledge and craft. It's very important for us to stay connected with the craftsmen of Charlottesville and to be seen on a local market. We sell our goods online and they are widely popular in the US and Internationally but it's proven to be difficult to get noticed locally. Made In Charlottesville helped us to reach this goal and made our work in Charlottesville much more fun! It's an honor to be a part of the community and have our workshop in this beautiful city, to feel connected and have support from the City of Charlottesville!� -Alisa & Daniel Foytik, RSVPhandcrafted
Photo courtesy of Kelly Bassett
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Parking Management With the hiring of a Parking Manager as a single point of contact for public parking in the City, we saw significant activity in all three areas of the Parking Action Plan in 2017. An On-street Metered Parking Pilot Program was approved by Council and implemented. The Pilot involved the installation of a combination of single space and multi-space parking meters covering 105 parking spaces in the immediate area of the Downtown Mall. The pilot was continuously operated from September 5th through November 17th. It provided the City with significant information on the effect of paid parking on space utilization and turnover as well as very useful customer and business feedback. A new Park and Ride parking lot was created on Avon Street this year. This lot provides free parking on existing City property served by a bus shelter right in front of the lot. This new addition to the Downtown parking supply provides free parking with access to the Downtown area in as little as 10 minutes via the number 2 CAT route. 2017 also saw continued efforts to add to the Downtown parking supply. Although the much anticipated West 2nd Project did not break ground, the project was modified to ensure its success and the groundbreaking is now anticipated for 2018. This project continues to guarantee the construction of over 100 public parking spaces as well as a significant number of new private spaces. The City continues to work with Albemarle County to finalize plans for partnering on the
Social Media
@CvilleEconDev
@CharlottesvilleEcoDev @CvilleJobCenter @MadeInCharlottesville
@MadeInCharlottesville
@JobCenterCville @MadeCville
Event Highlights Charlottesville Community Job Fair On May 4, 2017, the 9th Annual Charlottesville Community Job Fair was once again held at John Paul Jones Arena. One hundred organizations with more than 1,500 open positions participated in the event, making it the largest job fair in the Charlottesville region. Over 1,000 job seekers attended the event despite the area’s low unemployment rate. Charlottesville Community & Veteran Job Fair On September 13, 2107, over 40 area employers participated in the first-ever Charlottesville Community & Veteran Job Fair at Carver Recreation Center. This included organizations such as UVA Health System, the National Radio Astronomy Observatory, Piedmont Airlines, National Filter Service, the City of Charlottesville, and many others. More than 200 job seekers attended the event to learn about employment opportunities in Charlottesville. Charlottesville Women & Minority Business Expo On October 26, 2017, over 40 small, woman-, and minority-owned businesses participated in the City’s inaugural Charlottesville Women & Minority Business Expo at Carver Recreation Center. Buyers from the City and other local agencies and organizations attended the event to learn more about the products and services these local businesses have to offer. Businesses from all industries including technology, education and training, financial services, food and beverage, retail, etc. were represented.
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OED Staff Chris Engel, CEcD Director
Hollie Lee Chief of Workforce Development Strategies
Jason Ness Business Development Manager
Cory Demchak Job Center Coordinator
Matthew Murphy Community Outreach Specialist
Rick Siebert Parking Manager
Kelly Bassett Administrative Assistant
610 East Market Street 2nd Floor, Room B226 Charlottesville, VA 22902 www.charlottesville.org/econdev 434.970.3110