2012 Economic
Development Report Economic Development City of Hamilton
2012 Year In Review The Economic Development Department’s mission is to foster economic development activities that retain and create jobs, increase the tax base, and improve the sustainability and quality of life for the citizens of Hamilton. As the national and world economies have changed, so too has the role of the Economic Development Department. Economic Development has become defined not only as business retention, expansion, and attraction, but also those areas that enhance quality of life for a community’s businesses and residents. Despite the challenges of the current economic climate, Hamilton experienced significant economic development successes in 2012. The following is a review of the previous year and has two major objectives: 1) Communicate the economic development activities that occurred in 2012. 2) Celebrate the progress that has been made to implement the City’s strategic plan. Economic Development is no longer just the expressed mission of one department, but instead, the culmination of efforts made by all City departments, elected officials, community organizations, business community, and other stakeholders that strive to make Hamilton a great place to work, live, and play.
Business Creation The City’s Economic Development Department experienced a considerable increase in the number of inquiries it received from business prospects in 2012. The department’s staff received 90 prospect leads from companies seeking information to assist them in their decision to either expand or relocate their operations. Of those leads, the City was able to respond to 61 (67%) of the inquiries with information that met their specific criteria. The primary sources of prospect leads include JobsOhio, the Cincinnati Chamber of Commerce, real estate professionals, and the various proactive strategies conducted by the City’s Economic Development Department.
New Jobs Created
2012 Business Activities
by New Businesses*
90 Prospect Inquiries
100 maximum
Business Prospects Change: 2011 - 2012
Increase in Responses to Inquiries
65%
30%
61
Increase in Prospect Inquiries
Response to Inquiries
65
13
The 65% increase in responses suggests that better-suited projects are contacting the City
minimum
Active Prospects
3
New Businesses 12%
10%
8%
Unemployment Trends: Annual Rate 2005-2012 U.S. Ohio Hamilton
10.9%
Unemployment in Hamilton dropped to 7.0% by Dec. 2012 and is decreasing faster than the U.S. average
6%
9.8%
9.3%
8.6% 8.1% 7.2%
1.7%
5.7%
decrease in Hamilton’s unemployment rate ‘11-’12
4.6%
- Cassidy Turley Real Estate Services, 4th Quarter 2012 Hamilton, OH
4%
2005
2006
2007
2008
2009
2010
2011
“The decrease in unemployment can be directly attributed to a number of expansions/relocations of new businesses to the City of Hamilton, including Sensus, Matandy Steel & Metal Products, JacksonLea, Tippman/Interstate Warehousing, ThyssenKrupp, Butler County Imaging and Sleep Centers, KaiVac Cleaning Systems, and United Performance Metals.”
2012
*Estimated during project development and adjusted as more information is known 1
Business Retention & Expansion Business retention and expansion are foundational components of the City’s economic development efforts. Through retention visits, the Economic Development staff, City officials, and partner organizations build relationships with Hamilton’s employers, working with them on a wide variety of issues to strengthen their operations. On average, there is a business retention visit with a Hamilton company every two weeks. Throughout the year, the Economic Development staff collaborates with other City departments, such as Community Development, Underground Utilities, and Electric, to assist companies on a variety of needs. All of these efforts are aimed at providing the existing business community support and assistance. While the Economic Development Department does not measure direct impact of retention efforts, we feel the City plays an important role in ensuring Hamilton is a great place to do business.
Marketing & Public Relations In 2012, the Economic Development Department made an effort to communicate positive business activity occurring in Hamilton and to market available properties to prospective companies. Key successes include:
500
recipients
Launched e-Newsletter in 2012, reaching 500 people in the business community in Hamilton and beyond
50+ articles
1 front-page article in the Cincinnati Enquirer about Downtown Hamilton’s revitalization 1 featured article in the Cincinnati Business Courier profiling Jody Gunderson, Economic Development Director 50 positive Economic Development stories in the Hamilton JournalNews 2 advertisements in the Cincinnati Business Courier highlighting Downtown investment and CORE Fund
20
projects
Created the Initiative Update, which covers over 20 projects within Hamilton, and sharing it with elected officials, real estate professionals, prospects, and residents Print & Video
Developed marketing material for available properties and tailored each for individual prospect’s needs Collaborated with TvHamilton to produce a Small Business Highlight video series (to be released in early 2013)
True West Coffee was the first small business highlighted in the Small Business Series 2
Small Business Development Recognizing the importance that small businesses play in the local economy and valuing the quality of life they add to our community, the Economic Development Department has made small business development a priority. 2012 was the first full year the City had a Business Development Team, which acts as the liaison between the City and businesses, making it easier to invest in Hamilton. The creation of Hamilton’s Business Development Team underscores the City’s commitment to streamlining the development process and fostering a growing business community. This team of devoted leaders and officials has facilitated increased investment in our community by creating a customer-focused approach to dealing with new businesses and existing business expansions.
2012 Small Business Prospects
Examples of 2012 Business Development Team Successes West Side
157 Project Inquiries 57 Qualifying Projects 34 Prospects
30
New Businesses
Downtown Lindenwald Route 4
52.6% of qualifying
projects became new small businesses in 2012
• • • •
Jelli’s Fudgery Pappa Luigi’s Ohio Lunch (Re-Opening) Sweden Crème
• Pease Warehouse (Relocation) • Subway
German Village
• The Music Stand
Main St.
• • • • • •
East Hamilton
• Three Leaf
The Grand Re-Opening of Pease Warehouse in Route 4. Photo courtesy of Greg Lynch, Hamilton Journal News 3
• Hamilton Station Development (Hot Head Burritos, Marco’s Pizza, Verizon, Jimmy Johns)
513 Fix My PC Bella Vita Photography Canvas and Cupcakes Aesthetics Riverside Retro Trenton Tactical
Land Reutilization The City is making a concerted effort to ensure that land is available and ready for development in Hamilton. One important component of this effort is to revitalize underutilized properties, to make previously unusable properties “Shovel Ready.” The Brownfield Program, which has been an important tool in this effort for many years, and the Land Bank, a new tool in 2012, are key components in the strategy to prepare Hamilton for reinvestment.
$285.5k
Brownfield Program
leveraged in 2012 for brownfield reutilization
from private and state funds
The City of Hamilton has been working collaboratively with the State of Ohio and property owners to clean up and reuse underutilized properties through the Clean Ohio brownfield program. The goal of the brownfield program is to demolish underutilized properties, remediate identified areas of concern, and to redevelop the site into an economically beneficial use. In the last ten years, the City has leveraged $10.9 million in Clean Ohio Revitalization Funds (CORF), remediated 48 acres of land, and developed 5 new uses for old sites. Projects currently in process are:
Address & Former Use Size
CORF Grant
Spent in 2012
845 East Avenue, 7 Acres
$774,095
-
Former Estate Stove Company
1550 Grand, Former 7 Acres location of Marcell’s Used Auto Parts 550 North Former Niles Third Street, Tool Works 5 Acres property
Progress
Contractor chosen Project Kick-Off meeting held in December 2012 Anticipated to start demolition early 2013 $1,932,527 $234,000 Demolition complete Soil testing phase
$2,032,905 $51,500
Demolition complete Remediation in process Groundwater treatment design under EPA review
Demolition at 1550 Grand
Proposed New Use The City has reached an agreement with a developer to construct a 38,500 square foot light manufacturing/ warehouse facility It is anticipated that upon completion of the demolition and remediation project, the property will be redeveloped into a commercial or retail/mixed-use site The proposed redevelopment project includes the development of an alternative energy power generation facility to support expansion of the City of Hamilton’s electric utility system
Land Bank On April 13, 2012, Attorney General Mike DeWine announced the launch of a new grant program, “Moving Ohio Forward,” to assist communities in their economic recovery by removing blighted or abandoned structures to reclaim their neighborhoods. Consequently, the Butler County Land Reutilization Corporation, better known as the Land Bank, was formed. The Butler County Land Bank provided a mechanism for the City of Hamilton to access $1.1 million in matching funds from the Moving Ohio Forward program. These funds must be used before the end of 2013, but the City hopes to maintain the use of the Land Bank beyond the current funding deadline. Progress in 2012 included: The City acquired approximately 100 properties through the Land Bank The City adopted a policy and procedure for the disposition of land acquired by the Land Bank Made progress on developing a property donation process for private entities interested in donating properties to the Land Bank Demolitions have commenced on Land Bank nuisance properties The City has determined new owners of property in certain cases Those interested in Land Bank properties are encouraged to contact the Economic Development Department
Blighted buildings beyond repair will be demolished to make way for a more productive use of the land 4
Hamilton’s Local Economy Experiencing Investment Hamilton experienced an estimated $25.8 million investment in 2012 - a sign that business and residents remain committed to Hamilton’s economic growth. There were many developresidential and commercial ments worthy of celebration, such as new projects, job announcements, and capital projects, development and redevelopment* which fostered a sense of renewed excitement in Hamilton.
Total Investment
The Economic Development Department would like to take the time to recognize and celebrate the economic development activity that occurred in the City in 2012 due to the commitment and vision of Hamilton’s stakeholders.
$25.8
Infill Development & Urban Revitalization
million
Revitalizing Hamilton’s historic urban core is a primary focus of the City’s Strategic Plan and there were many developments that occurred in 2012 which are energizing the city’s core district, including:
$8.6
The Historic Mercantile Lofts, an $8.6 million renovation in Downtown Hamilton, opened in April 2012. Its 29 market rate apartments are nearly 100% occupied and 3 of the 4 retail spaces are currently leased
$2+ mm
The $2+ million renovation of the JournalNews building in Downtown Hamilton was completed. In January 2013, it became home to Butler Tech School of the Arts, Miami Valley Ballet Theatre, and Hamilton City Schools ABLE program
$1.9
Construction began on RiversEdge, the City’s new riverfront amphitheater. Phase 1 will be a $1.9 million investment in Downtown Hamilton and will open in Spring 2013
60 town
Groundbreaking occurred on Beacon Pointe, a new residential development of 60 townhomes which will be a mixture of market rate and affordable housing
3
homes
Habitat for Humanity built 3 new single-family homes on the former Madison School site for low-moderate income families and have 4 more slated for 2013
1
new owner
The Robinson-Schwenn building (featured on cover page) assumed new ownership, underwent a renovation, and received improvements to its façade
Hamilton’s CORE Fund was launched in December 2012, which will assist revitalization efforts by offering gap financing for qualified commercial and residential real estate projects within Hamilton’s urban core. The CORE Fund anticipates a $5 million capitalization by the second quarter of 2013. Headed by Mike Dingeldein, the CORE Fund is a venture supported by the City of Hamilton, the Hamilton Community Foundation, First Financial Bank, Fifth Third Bank, US Bank and SoMoLend. The CORE Fund will bridge the gap on targeted projects in the urban core to ensure their success.
Main St.
SMART Paper
German Village
Rossville
Downtown CBD
*Based on the data from Permit Applications submitted to the City of Hamilton’s Community Development Department 5
E. High Gateway & Dayton Lane High St.
South East
Railroad
homes
Miami River
mm
The Grea t
mm
Phase I Phase II
Hamilton’s Local Economy Experiencing Investment Job Growth Job growth is one of the most crucial indicators of a healthy economy. A number of businesses experienced job growth or made important job announcements in 2012, including:
65
Koncert IT and Kroger’s pharmacy call center project was extended at Vora Technology Park, creating 65 jobs in 2012 with potential for growth
45
Butler Behavioral Health announced they would be adding approximately 45 new jobs in Downtown Hamilton in 2013
25
ThyssenKrupp Bilstein’s $6 million expansion in 2011 led to approximately 25 new jobs in 2012
6
Liferay, a California-based technology company, announced its plan to open its national sales office in Downtown Hamilton in early 2013, bringing 6 jobs to Downtown Hamilton in its initial phase
3 partners
Miami Valley Ballet Theater’s move to the JournalNews building will bring its 2-person staff to the heart of Downtown Hamilton. The JournalNews project will retain Butler Tech School of the Arts and Hamilton City Schools ABLE program Downtown
Announcements & Recognition From anniversaries to regional recognition, Hamilton’s business and institutional community had much to celebrate in 2012. The Economic Development Department would like to take the time to honor their achievements: ODW Logistics was recognized as one of the 55 fastest growing companies in Greater Cincinnati Hamilton Caster was recognized by the University of Cincinnati's Goering Center for Family and Private Business as the Tri-State's 2012 Family Business of the Year for businesses that have been in operation for over 50 years ThyssenKrupp Bilstein and ODW Logistics were recognized by the Business Courier as two of the best places to work in Greater Cincinnati The Hamilton City School District received the National District of Character Award, the only school district in the nation to receive this honor Butler County Lumber celebrated their 100 year anniversary and Ritzi Body Shop celebrated its 75 year anniversary Miami University Hamilton announced it would be adding more 4-year programs at the campus. Less than five years ago, Miami Hamilton offered just two bachelor's degrees; today, the campus has five accredited degrees and is adding more to their curriculum Community First Solutions acquired Partners in Prime. Today, Community First Solutions is the non-profit parent company of Colonial, Community Behavioral Health, Community First Pharmacy, and Partners in Prime and serves over 40,000 individuals annually Fort Hamilton Hospital was recognized as a top ten hospital in the Cincinnati Metro Area by US News The City of Hamilton was recognized as having the Best Tasting Water in Ohio in 2012 and will represent Ohio in 2013 at the American Water Works Association National Contest The City earned the recognition of “Tree City USA,” the 8th consecutive year Hamilton has received the award
Special Events Special events are an important source of economic development. Festivals, concerts, and many other events draw visitors into Hamilton and enhance quality of life for residents. Those that visit Hamilton for special events not only have a positive impact on Hamilton businesses, but also experience the renaissance occurring in the urban core, which is helping to change perceptions of Hamilton and has even brought new residents to Downtown. Because the Economic Development Department recognizes the impact of special events, the Department staff includes a volunteer coordinator position. 6
Hamilton’s Local Economy Experiencing Investment In addition to long-time favorites such as the 4th of July Parade and IceFest, there were new and expanded special events in 2012, including:
25k visitors
Operation Pumpkin, with 100 vendors and food booths
2k
concertgoers
Hamilton’s Summer Concert Series, with 6 concerts
500
participants
Hamilton Cornhole Cup, with participants from 22 states
300
participants
Model T Jamboree, with 100 Model T’s Sojourner Recovery Services 5k Walk/Run
300
participants
100
RiversEdge Wheel and Heel Duathalon
participants
Capital Investment
Companies and institutions made large capital investments in Hamilton last year, illustrating their commitment to the community. As a result, Hamiltonians have expanded and enhanced medical options, Hamilton’s children have state-of-the-art classrooms, and Downtown buildings were rejuvenated. Major investments include: City Schools completed its $250 million Master Facilities Plan in 2012, resulting in the most comprehensive building $250 Hamilton project of any school district in Ohio mm Hamilton Hospital broke ground on a $5 million expansion of their Emergency Room in August 2012, improving access, $5 Fort service, and efficiency. The Hospital also expanded its Sleep Lab (opened in January 2013) mm
$4.3 mm $1+ mm 17 new ER beds
1
multi-use space
Community First Solutions invested $4.3 million in its buildings, including the $3.5 million Donna Y. Carruthers Manor House at Berkeley Square, a new $1.3 million wellness center, Elements at the Square, and expansions at the Community First Pharmacy in Downtown Hamilton First Financial Bank invested over $1 million in its Downtown Hamilton location to provide new training space for its employees in the Greater Cincinnati region Bethesda Butler County expanded its cardiology services at its Hamilton location in 2012 and has plans to open an Emergency Room in 2013 Miami University Hamilton Downtown renovated its space in the Robinson Schwenn Building to create a multi-use space, strengthening the connection between campus and community
$15.7 Million
in commercial investment occurred in 2012*
*Based on the data from Permit Applications submitted to the City of Hamilton’s Community Development Department. 7
Hamilton’s Economy At-A-Glance Employment Numbers 24,698
total employees
1,822
total businesses
$831
average weekly salary *
Largest Industries**
Sample Average Hourly Wages***
by Number of Employees
1,016 4,133
1,492 2,271
Retail Trade
Retail salesperson $12.66/hour
Food Services & Drinking Places Other Services Construction
International Companies with locations in Hamilton
by Number of Employees
1,750
Butler County
1,095 1,020
Hamilton City School District Fort Hamilton Hospital
Meijer ThyssenKrupp Bilstein The Kroger Company First Financial Bank Valeo Climate Control Vinylmax (HQ) Interstate Warehouse
France
680 650
City of Hamilton Miami University-Hamilton
Machinists $18.94/hour
Manufacturing
Top Employers
Community First
Medical assistant $15.31/hour
Educational Services
2,599
3,175
Hamilton’s Largest Industries
Health Care & Social Assistance
2,305
3,317
Public Administration
370 325 250 250 230 200 190 180
Connector Manufacturing 150 *Butler County (Source: US Bureau of Labor Statistics) ** ESRI Business Analyst, utilizing NAICS titles ***Southwest Ohio Averages (Source: Ohio Department of Jobs and Family Services, “2018 Job Outlook”
3
Germany
Japan
2 2
Brazil Canada
Italy
Netherlands
Ireland
1 1 1 1 1 8
2012 Economic Development Summary In 2012, the City of Hamilton’s Economic Development Department made progress implementing the City’s strategic plan by emphasizing business retention, expansion, and attraction. The Department’s new staff established and strengthened connections with the City’s top employers, ensuring that local companies know who to contact when they need the City’s assistance and bringing to their attention programs that may benefit their operations. The Business Development Team provided an important support system for new and growing businesses, making it easier for companies to invest in Hamilton and assisting in the development of 30 small business projects.
Initiative Update October 2012
Through the Department’s business attraction efforts, Hamilton received 30% more inquiries from prospective companies in 2012 than in 2011 and was able to offer these prospects a matching site or building two-thirds of time, positioning Hamilton to be a stronger contender for prospective companies. The Economic Development Department has also made a concerted effort to engage more proactively in the regional economy, making connections with the business community throughout the Cincinnati-Dayton region. These efforts help ensure that Hamilton remains in the forefront of the business community’s mind when making decisions.
City Initiative Update serves as an important communications piece
The Department also expanded and organized its public relations strategy. Through targeted marketing and communications, the City is improving its connections with the local, regional, and even national business community, highlighting the progress occurring in Hamilton and opportunities to participate. 2012 was also a very important year for revitalizing underutilized land and buildings in Hamilton. The Brownfield Program is currently transforming 3 blighted properties into development-ready sites slated for new projects. The Land Bank acquired nearly 100 properties, which will be demolished or redeveloped in 2013, stabilizing neighborhoods and enhancing the desirability of surrounding property.
ThyssenKrupp Bilstein, one of Hamilton’s largest companies, expanded its workforce by 25 employees in 2012. They currently employ 250 employees. 9
Demolition photograph at one of the Land Bank’s first houses
1
Looking Forward: 2013 Economic Development Strategy 2012 (continued) Revitalization efforts in Hamilton’s urban core made significant progress in 2012. Projects like the JournalNews building and the Historic Mercantile Lofts are catalysts for development as people take notice of the urban core’s transformation. These efforts, along with the commitment of Hamilton’s stakeholders, seen through capital investments, job growth, volunteer hours, new ideas, and an endless array of other activities, position Hamilton well for the upcoming year.
2013 There is much to look forward to in 2013. A number of projects that began in earnest in 2012 will come to fruition in 2013, and the Economic Development Department believes that this year will usher in even greater growth and investment throughout the community. 2013 will also be the first year for the CORE Fund, an important new addition to the partner organizations that the Economic Development Department collaborates with to build a healthy, robust economy in Hamilton. The City of Hamilton has demonstrated its commitment to working outside the traditional way of thinking, creating innovation at all levels of City and the Economic Development Department will continue to strive to be an integral component of this culture of innovation in 2013. Utilizing lessons learned from 2012 and leveraging the community’s positive momentum, the Economic Development Department is developing a strategic plan that challenges our staff to achieve even greater goals in 2013.
The Economic Development Department strives for continued investment in Hamilton and its historic urban core in 2013, like that of the Historic Mercantile Lofts project
Message from the Director The City of Hamilton’s renaissance is thriving and full of possibility. There were many projects in 2012 that moved the City’s vision forward and the Economic Development Team is confident that 2013 will bring even more projects, jobs, and business activity to our community. I believe Henry Ford’s definition of organizational success is a fitting definition for the City of Hamilton: “Coming together is a beginning, staying together is progress, and working together is success.” The City of Hamilton has a number of appealing attributes for retaining and attracting businesses; however, the most important attribute the community has is the commitment of its residents, elected officials, community service organizations, and City staff toward a single goal - making Hamilton a community that is desirable to live, work, and play. - Jody Gunderson, Director of Economic Development for the City of Hamilton
Photo Courtesy of the Cincinnati Business Courier 10
Economic Development Department Director ................................................Jody Gunderson Economic Development Specialist.............................................Stacey Dietrich-Dudas Business Development Specialist.....Antony Seppi Volunteer Coordinator.........................Karen Wittmer Administrative Secretary....................Karen Bowling Earl Brush Fellow.................................Liz Colombo Phone..................................................513-785-7070 E-Mail..................................................econdev@ci.hamilton.oh.us Website...............................................www.hamiltonohiobusiness.com
Economic Development City of Hamilton