germantown, tn
annual business & industry report
2015 Germantown Department of Economic and Community Development
smart business
smart growth
smart people
Welcome from Mayor Palazzolo As the newly elected mayor, serving one of Tennessee's premier communities, I am excited to present our latest annual report of economic development progress and prospects. Our team of professionals is hard at work with the Board of Mayor and Alderman. Our goal: making sure Germantown is positioned as a great place to do business. Decades of steady, well-managed growth have invited a new-wave of retail and healthcare expansion in our city. These businesses can't wait to be part of our community, which is now made stronger with its own Municipal School District.
Whether you are opening, relocating or expanding a business, here’s what Germantown offers: • • • mayor mike palazzolo
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Median household income of $111,200 and per capita of $50,940 Attractive housing options and established neighborhoods for employees Well-designed, well maintained commercial centers dispersed around the City, on major roads Commercial district plans encouraging mixed use and 21st century urban design Customer-friendly, time-sensitive development approval process Extraordinary attention to safety and security, resulting in very low crime rates Well-run city government, evidenced by triple-A rating from both Standard & Poor’s and Moody’s Municipal School District with top-performing schools
There’s a bright future for Germantown. Read all about it. Be part of it.
Tennessee At A Glance
Mayor Mike Palazzolo
germantown, tn •
2013 and 2014 State of the Year for Economic Development - Business Facilities
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2014 #4 Best Business Climate - Business Facilities
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2014 #1 State for jobs created through FDI - IBM’s Global Location Trends Report
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2014 #1 Overall Infrastructure and Global Access - Area Development
Tennessee has the second lowest state and local tax burden per capita, and no income tax on wages. - The Tax Foundation
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TVA ranked in top 10 North American utilities for leadership in economic development 9th year in a row - Site Selection
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GermantownEDP.com
annual business & industry report • 2015
Economic Development Strategic Plan Germantown has a strong history of strategic planning. Currently operating from the Vision 2020 plan, a citizen-driven steering committee is working to develop a new strategic vision for the sustainability of Germantown. The Economic Development Strategic Plan expands the vision and includes:
Five Guiding Principles
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create an enabling environment by clearly conveying a process by which business can start, locate or grow here. Germantown's business friendly processes are designed to provide more certainty and predictability for business.
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reposition germantown within the regional economy by promoting assets and leveraging intellectual capital to allow expansion of medical/business interests to attract investment and enhance the livability and health of the community.
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leverage assets to attract new investment where the community has already provided investment and infrastructure. This includes the central business district (smart growth) and other key commercial areas.
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monitor success with continued and expanded measures of performance specifically focused on business and economic development, moving Germantown toward economic sustainability and prosperity.
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build value from within by supporting those businesses or assets which are already contributors to our community. Germantown has valuable resources in healthcare, cultural and recreational assets.
Economic Development Districts The essential component of these Guiding Principles is the creation and establishment of key economic development districts throughout the City. Each of these are the primary focus of commercial and mixed-use development and will have significant economic impact on the fiscal health of the City. City of Germantown Economic Districts for Commercial Development n e
w s
GermantownEDP.com
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smart business
Organizational Structure
Citizen board of mayor & alderman mayor
smart growth
smart people
Programs Visitors & Tourism Tourism is more than attractions; it includes:
Eco-tourism Cultural tourism
Recreational tourism Historical tourism
Medical tourism
The tourism task force began with an inventory of the City’s assets including its cultural arts centers, such as the Germantown Performing Arts Center (GPAC), as well as the Germantown Greenway with its boulevard creating the world’s first Certified Silver Audubon International Signature Sanctuary roadway. A published Visitors Guide highlights these and the City's other shopping, dining, and entertainment features.
city administrator
economic & community development services
economic development engineering planning neighborhood services solid waste collection The Economic Development Commission (EDC) is appointed by the Board of Mayor and Aldermen and advises on the implementation of the Economic Development Plan and its programs. Implementation is facilitated through three task forces, comprised of EDC members and community stakeholders created to support programs and special projects.
These task forces include: • • •
Visitors & Tourism Innovation (SBE) Retail
Small Business & Entrepreneurs (SBE) The innovation task force focuses its efforts in two areas. First, Germantown is creating an initiative in the key sector of biomedical device technology and medical device technology in association with a proposed public-private partnership agreement. The second includes a proposed workforce development program in association with the Germantown Municipal School District, which may include facilitating internships between local educational institutions and industry.
Shop Germantown – Buy Local Retail The primary focus of the buy local initiative Shop Germantown (facebook. com/ShopGermantown) is education by providing information on the importance of keeping local capital within the community. This provides expanded opportunities for employment, sales tax revenue and charitable contributions to local non-profits. The goal is to maintain and enhance shopping center occupancy and the viability of retail businesses.
Business Retention & Expansion (BRE) Based upon feedback from companies, staff provides assistance with the following: Planning/zoning matters Public safety Identification of regional, state and federal financing/funding programs
Operations/export assistance Facilitation of workforce development and education programs through local academic/ educational institutions.
Facilitation of PILOT or other incentive programs
80% 80% of job growth and investment in most communities is generated by existing companies1
Germantown’s three-tiered BRE Program:
> 50 Employees
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25-49 Employees
1 International Economic Development Council (IEDC), BRE Strategies
<25 Employees
annual business & industry report • 2015
Economic Development Districts Poplar Avenue West District
$325,000 - $2,750,000
Wolf River District
over $55 million
potential additional economic fiscal impact via property tax
total new investment in the district
The smart growth plan (with three options for redevelopment) was completed as a partnership between the City and five local landowners/developers. The economic fiscal impact of this redevelopment area will add, depending on the development scenario, between $327,465 and $2,762,000 of additional city property tax revenue as the district develops. As a result of this plan, one project development is moving forward with submission of plans for city planning approval.
The Wolf River district continues to grow and receive high interest from the healthcare industry. Some recent new developments, expansions or announcments include:
Central Business District (CBD)
over $175 million
Wolf River Medical A new medical office building totaling 36,000 sq ft with investment of over $4.1 million
Baptist Rehabilitation Center Expansion of a second new rehabilitation facility totaling $33.2 million in additional investment and over 100 employees
Wolf River & Kimbrough Two new medical office buildings totaling 22,000 sq ft and $2.4 million in additional investment
total new investment in the district There is new interest in development projects, previously stalled by the 2008 recession. These include retail center redevelopments and expansions and new mixed-use development. These proposed projects will generate additional tax revenue and provide local employment opportunities.
Continued Significant Investment
Saddle Creek
Poplar Avenue East & Forest Hill Heights Districts
20,000 sq ft renovation and expansion of retail shops and restaurants on Poplar Avenue
Germantown Crossing
Campbell Clinic expansion (120,000 sq ft) and West Clinic relocation $20M. 10,000 sq ft expansion
over $3 million total new investment in the district
40,000 sq ft expansion of Kroger grocery store
Whole Foods
These districts are home to a large regional shopping center and a corporate campus area featuring two of the City’s international employers: ThyssenKrupp’s American headquarters and Orgill’s headquarters.
36,000 sq ft specialty grocery retailer
Thornwood Mixed Used Development $150M, 19 acres. Utilizes City’s SmartCode which provides opportunities for increased development density, shared parking and a mix of uses
Continued Significant Investment Among others: MedPost, $22M Village at Germantown retirement community expansion, and Methodist LeBonheur hospital, one of the City’s LEED certified buildings, expanded and renovated its emergency room
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Forest Hill Heights Smart Growth Plan began in 2015
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Acadia, Baptist Memorial and Saint Francis partnered on a 62,000 sq ft behavioral health development in Forest Hill Heights which is estimated to create 200 jobs
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Poplar Avenue East has seen retailers enter the market such as Sprouts Farmers Market $1.5M investment; 30,000 sq ft, Corks Wine and Spirits, Firestone $1.3M investment; 8,000 sq ft
GermantownEDP.com
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smart business Why Germantown? •
S&P and Moody’s AAA bond rating Only TVA Platinum Sustainable Community in West Tennessee
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Top business friendly city (12th)
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Safest Places in TN1
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America’s Best Suburbs2
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Top 10 Happiest Suburbs
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Highest average household income in the region4
Within two miles of International Paper and FedEx World Headquarters
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20 minutes from Memphis International Airport – home of FedEx World Hub
Additional Information •
More than half of the population has a bachelor’s degree or higher. 98% of the population over 25 years old had obtained a high school diploma or higher.
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Corporate presence: Orgill, West Fraser, ThyssenKrupp Elevator Manufacturing, Crew Training International
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MLG&W: Lowest utility rates in the nation, including electricity and natural gas6
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smart people
Germantown By The Numbers
New Residential Permit Values value $40m
New Commercial Permit Values fy13 fy14
$30m 3
Locally controlled Germantown Municipal School District with award winning schools5
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To monitor progress, City staff benchmark and track metrics leading to a sustainable economy including the following:
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smart growth
$20m $10m $-
80 56 number
source: shelby county building dept
Office Vacancy (year end rate)
6.4% 4.8% fy13
fy14
source: xceligent
value $6.5m $5.5m $4.5m $3.5m $2.5m $-
fy13
5 5 number
source: shelby county building dept
Retail Vacancy (year end rate)
11.6%
fy13 fy14
9.7% fy14
source: xceligent
Commercial Permits (renovation) (#) 48 $6,334,747
fy13
(#) 53 $7,918,691
fy14
source: shelby county building dept.
TVA Platinum Sustainable Community The City of Germantown is the only TVA Platinum Sustainable Community in West Tennessee.
1 http://www.movoto.com/tn/safest-places-in-tennessee/ 2 http://www.businessinsider.com/best-suburbs-in-america-methodology-2014-10 3 http://www.businessinsider.com/happiest-suburbs-2014-5 4 http://www.germantown-tn.gov/Modules/ShowDocument.aspx?documentid=9572 5 https://k12.niche.com/rankings/public-high-schools/best-overall/s/tennessee/?utm_ medium=social&utm_source=facebook&utm_campaign=RankingsList&utm_term=RLP 6 http://www.mlgw.com/images/content/files/pdf/UtilityRatesComparison.pdf
GermantownEDP.com
annual business & industry report â&#x20AC;˘ 2015 New Business Licenses 12 10 8 6 4 2 0
Germantown Unemployment Rate fy13 fy14
totals fy13 25 fy14 1st q
2nd q
3rd q
4th q
37
source: city of germantown
8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% jul 11 jan 12 jul 12 jan 13 jul 13 jan 14 jul 14
source: bureau of labor & statistics
Germantown Retail Sales Tax Revenue $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $-
Germantown Hotel Occupancy Tax Revenue $250,000 fy13 fy14 totals fy13 $6,995,563 fy14 $7,851,496
1st q 2nd q 3rd q 4th q
source: tn dept of revenue/city of germantown
Union University Public-Private Partnership The City of Germantown partners with the Germantown campus of Union University and its MBA program. The City supports the business school's strategic direction to offer challenging initiatives that raise student awareness and learning of business research.
Marketing & Communication Initiatives include expanded information and communication to site selection, real estate and development professionals and local business. Together these provide the message that Germantown is "Open for Business.â&#x20AC;?
$200,000
fy13 fy14
$150,000
fy13-fy14 % change
$100,000 $50,000 $-
16.5% 1st q 2nd q 3rd q
4th q
source: city of germantown
Business Buzz E-Newsletter The Business Buzz is a digital newsletter which focuses on business and economic development. This has become a popular information source for elected officials, residents and businesses. Sign up at GermantownEDP.com/contact-us
Smart Growth Partnership Program Revisions to the Smart Growth Partnership Program allow fast track permitting, reimbursements and other incentives for projects in the five Districts upon completion and acceptance of the Smart Growth Plan. Public financing tools are available for developments that qualify - based on smart growth principles, the creation of jobs and other criteria.
In partnership with the Germantown Area Chamber of Commerce, the Economic Development Partnership (EDP) created a website specifically focused on economic development and resources for business attraction, expansion and entrepreneurship in Germantown.
www.GermantownEDP.com
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germantown economic development commission Chairman
Members
Vice Chairman
Janet Geyer
Steven Levy
James King
Alderman Liaison
Sidney Kuehn
Rebecca DeRousse
Jerry Klein
John Barzizza
Elizabeth Sillay
Planning Commission Liaison
Ron Sklar
Susan Burrow
Harold Steinberg
Chamber Liaison
City Administrator
Patrick J. Lawton, ICMA-CM
Economic & Community Development Director
Cameron Ross, AICP LEED AP
Economic Development Manager Marie Lisco, RLA
Janie Day, Executive Director
germantown board of mayor and aldermen Mayor
Mike Palazzolo
Aldermen
John Barzizza Mary Anne Gibson Dave Klevan Forrest Owens Rocky Janda
partners ECONOMIC DEVELOPMENT
GROWTH ENGINE FOR MEMPHIS & SHELBY COUNTY
1920 S. Germantown Road Germantown, TN 38138 901.757.7281 www.GermantownEDP.com