2014 Economic Development Annual Report

Economic Development Annual Report

2014

1

4 01 2 year in review

6

new jobs

335

healthcare jobs created & retained

retained jobs

$83 million in capital investments in Hamilton businesses

economic development awards

360

875

8

3.2%

drop in unemployment

companies expanded

831

advanced manufacturing & logistics jobs created & retained

6

D E T EN

T A P

10

new startups at The Hamilton Mill

patents held by Hamilton startups

116

In the last 5 years, 1,175 new jobs have been created &

blighted properties demolished

4

downtown buildings under rehabilitation

$190 million

has been invested in capital improvements

$33 million in employment-related infrastructure projects underway

Introduction In 2014, Hamilton’s three largest health care providers embarked on significant expansions, local companies invested $83 million in capital improvements to their Hamilton facilities, the business incubator was refocused and relaunched to great initial success, and revitalization efforts were well underway in Hamilton’s urban core. The City of Hamilton participated in projects that resulted in 335 new jobs* and 875 retained jobs.** 2014 was a busy year for economic development efforts in Hamilton, Ohio and we are already working to make 2015 an even bigger year.

Mission

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. Therefore, the City of Hamilton Economic Development team is actively involved in efforts such as downtown revitalization, land reutilization, and infrastructure improvements.

Teamwork

Economic development is not just the expressed mission of one department, but instead, the culmination of efforts made by all City departments, elected officials, community organizations, the business community, and other stakeholders that strive to make Hamilton a great place to work, live, and play. Through the economic development efforts of these many stakeholders, Hamilton has been able to foster significant economic growth.

2014 Highlights

The expansion of economic development efforts into a wide variety of areas is evident by the topics included in the 2014 Annual Report. The contents are also indicative of the collaborative nature of the work as the projects span multiple City departments and partner organizations. The report is organized by the following sections:

• Health Care • Advanced Manufacturing & Logistics • The Hamilton Mill • Downtown Revitalization • Infrastructure Improvements

*

Throughout this report, the phrase “new jobs” refers to the number of new jobs at the Hamilton facility and includes jobs that were created in 2014 and job announcements that were made in 2014 that a company has promised to create as part of an incentive agreement. ** Throughout this report, the phrase “retained jobs” refers to the number of existing jobs at the Hamilton facility at the time of the expansion project. In many cases, these jobs were considered at-risk if the expansion project did not occur, but the exact number of at-risk positions is unknown.

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“This year was rewarding from a number of perspectives, but most importantly it represented a year that Hamilton’s businesses expanded their operations in the city when presented with opportunities elsewhere.

Our medical system grew based upon the confidence and commitment they have in Hamilton and the region. The City was able to attract transportation funding for a project that had been on the drawing table for over a century based in large part on the confidence the State of Ohio has in the growth of our local economy.

Due to the growth in employment opportunities, Hamilton companies have strengthened their collaborations with our Universities, Colleges, and Tech schools. The City witnessed the continued investment in our downtown business district as well as other commercial nodes throughout the City. All of this is occurring in our community as we collectively strive for excellence in each endeavor we undertake.

I saw a poster once that sums up this attitude with greater meaning than I can express, “Excellence is the result of caring more than others think is wise, risking more than others think is safe, dreaming more than others think is practical, and expecting more than others think is possible.”

The City of Hamilton economic rebound can no longer be said to be experiencing traction, but instead it should be characterized as momentum.”

- Jody Gunderson, Economic Development Director

Soldiers and Sailors Monument in downtown Hamilton. Photo credit Jacob Stone.

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Health Care $49 million in capital investment

364 jobs created & retained

4

projects underway in Hamilton

Health care is a vital and thriving industry in Hamilton and the three largest health care organizations expanded or announced expansions in 2014. This growth not only creates new jobs in our community, but also greatly diversifies health care opportunities for Hamilton residents and neighboring communities.

Community First Solutions

Community First Solutions, Hamilton’s second largest private employer, announced two major projects in 2014. The 50 employees that comprise Community First Solutions’ corporate headquarters will be moving into the former Ringel’s Furniture store downtown. The renovation of the 6 story, 35,000 sq. ft. historic building began in early August 2014 and is expected to be complete in the summer of 2015. It is a $5.8 million rehabilitation.

Community First Solutions is also building a 42,000 sq. ft., $12 million rehabilitation center at Main Street and Stahlheber Road. Overnight and same-day services will be offered for post-surgery patients. The facility will be Community First Solutions’ largest single capital project in over twenty years. Community First Solutions is the parent company responsible for the strategic oversight of Colonial, Community Behavioral Health, Community First Pharmacy, and Partners in Prime, which serve over 46,000 individuals annually.

Bethesda Butler Hospital

Bethesda Butler Hospital, part of the TriHealth network, broke ground in 2014 on a 45,000 sq. ft., $26 million inpatient building on their campus in Hamilton Enterprise Park. The expansion will increase the number of beds at the facility from 10 to 48. The project is expected to be completed in December 2015 and will create up to 50 new jobs, mostly in the nursing profession.

Fort Hamilton Hospital

Fort Hamilton Hospital, Hamilton’s largest private employer, completed a $5 million renovation on its emergency room in 2014.

The hospital is currently renovating its maternity unit and opening a new diabetes center in downtown Hamilton.

A rendering of TriHealth’s expansion

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“It’s not about an office building. It really is about making a difference in the community. As the second-largest private employer in Hamilton, we really do have an obligation to strengthen this community, not just the services that we do, but a true investment in making this community a stronger place.”

- Jeff Thurman, president and CEO of Community First Solutions “New corporate headquarters to open in downtown Hamilton,” Chelsey Levingston, Journal-News, August 1, 2014

A rendering of Community First Solutions new downtown headquarters 7

Advanced Manufacturing & Logistics $29 million in capital investment

580 jobs retained

251

new jobs created

A number of advanced manufacturing and logistics companies expanded in Hamilton in 2014. Logistics has been an emerging industry in Hamilton for a number of years and the industry made great gains in 2014. Hamilton has always had a strong manufacturing industry and the growth in this sector in the past year has furthered Hamilton’s transition into an advanced manufacturing economy.

ODW Logistics & Transportation Services

In 2014, ODW Logistics & Transportation Services (LTS), a leading provider of transportation management services, outgrew its office space at The Hamilton Mill. Instead of moving out of the city, the company chose a space in downtown Hamilton to move and grow into. ODW LTS was named one of Inc. Magazine’s Fast 500 in 2013 as one of the fastest growing companies in the United States. The company anticipates doubling the size of its operations and staff over the next three years. All of the company’s jobs are professional advanced logistics positions.

Interstate Warehousing

Interstate Warehousing, a cold storage warehousing company with eight locations around the country, added 25 new jobs and completed a $3.1 million expansion at their Hamilton facility in 2014. During an expansion in 2011, the company pledged to create 25 new positions and actually created 90. In total, Interstate Warehousing employs 150 people at its Hamilton facility.

The 2014 improvements will position the company for future expansions at the site.

ThyssenKrupp Bilstein

In the summer of 2014, ThyssenKrupp Bilstein of America broke ground on a $26 million expansion project at its Hamilton headquarters. In order to meet the company’s growing demand for its high-end shock absorbers, the project includes a 60,000 sq. ft. building expansion and will create 214 new jobs. This is the company’s third expansion in Hamilton since 2011, representing a total of $44.5 million in capital investment. In 2011, ThyssenKrupp Bilstein employed 185 at their Hamilton facility. When this expansion is completed they will employ 581 people, making them one of Hamilton’s largest employers.

ODW LTS ribbon cutting. Photo credit Jacob Stone.

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“There’s a lot of expertise in the area for high-tech manufacturing.

Also, there are a lot of people...who really care and really want to create jobs for the community.”

- Fabian Schmahl, President and CEO of ThyssenKrupp Bilstein of America, “Here’s why ThyssenKrupp chose to expand in Greater Cincinnati,” Erin Caproni, Cincinnati Business Courier, July 31, 2014

ThyssenKrupp Bilstein facility. Photo credit Greg Lynch, Journal-News.

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The Hamilton Mill 6

new startups

10

new patents

D

E NT

TE A P

15

partners

In July 2014, Hamilton’s business incubator was rebranded, refocused, and re-energized. Now known as The Hamilton Mill, it is Southwestern Ohio’s only small business incubator dedicated to green, clean, water, digital and advanced manufacturing technologies. According to the Kauffman Foundation, one of the leading organizations promoting entrepreneurship and small business, younger firms are the job creators, and The Hamilton Mill will be an important part of developing entrepreneurs going forward. To achieve this, The Hamilton Mill is partnering with innovation leaders in Southwest Ohio: Cintrifuse, Butler Tech, CincyTech, SCORE, Miami University, Queen City Angels, the Hamilton Community Foundation, and more.

The Hamilton Mill leverages the city’s assets, such as green energy, water, fiber optics, and a rich manufacturing tradition, to attract high-growth potential startup companies. Since the relaunch, the incubator’s portfolio of new startups has grown to include kW River Hydroelectric, Perceptive Devices, RespondBy, Hub Energy Group, Edge Prototype, and Enforc Hygiene. This list will grow over the next year as The Hamilton Mill expands its programs and grows its resources to meet the needs of entrepreneurs.

kW River Hydroelectric

kW River Hydroelectric, one of The Hamilton Mill’s new companies, is the developer of the Williams CrossFlow Turbine, a power generation unit designed to operate when installed on “low-head” dams (15 feet or less in height).

This innovative technology generates electricity from the flow of water over turbine blades contained within a strong and very low-profile housing. The state-of-the-art housing unit allows the water to propel the turbine while debris flows over it.

Perceptive Devices

Perceptive Devices, another Mill company, is developing ground breaking wearable technology. Through a wide

Perceptive Devices’ PERCEPT-D technology, featured here, won the Innovation Award at CE Week 2014 in New York City and won the RocketCode Web Development Award at Cincinnati Innovates 2014.

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Recognition in 2014 $32.5 million

has been invested to upgrade Hamilton’s Recognized as a Public/Private Partnership Model from the American Society for Public electric utilities since 2007 Administration Winner of the Excellence in Economic Development Innovation Award from the Ohio Economic Development Association Bronze winner in the Sustainable and Green Development category from the International Economic Development Council array of advanced sensors and controls, the PERCEPT-D wearable allows users to control any type of device through simple facial movements.

Partners

Fred Williams of kW River at Hamilton’s low head dam

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Downtown Revitalization $18 million invested in downtown Hamilton

4

rehabilitation projects underway or completed

100,000

square feet of space under renovation

Thanks to investments both large and small in Hamilton’s downtown, the urban renaissance continued to move forward in 2014. Seven new retail and restaurant options either opened or announced plans to open in downtown Hamilton and 4 rehabilitation projects were underway.

Artspace Hamilton

Construction was underway in May 2014 for Artspace Hamilton, a 42 unit artist loft apartment development. It is slated to open spring of 2015. Artspace USA is a Minneapolis-based developer that has completed over 40 artist loft projects around the country. This will be the developer’s first Ohio project. The $11.8 million rehabilitation will celebrate the original architecture of the two buildings that comprise the development. In December 2014, three commercial tenants were announced for Artspace Hamilton - Renaissance Fine Art Supplies, The Almond Sisters Bakery, and Unsung Salvage Design.

Community First Solutions

As mentioned previously, Community First Solutions, Hamilton’s second largest private employer, began construction on its new headquarters in downtown Hamilton. The $5.88 million renovation of the former Ringel’s building will add an important injection of daytime traffic into downtown.

Sara’s House

The Hamilton CORE Fund, which was established in late 2012 to be a catalyst for revitalization in Hamilton’s urban core, completed its first project, turning a highly visible eyesore into a great retail space.

In 2014, Sara’s House, a home decor shop, moved from Bridgewater Falls lifestyle center to open in the CORE Fund building. The new location has brought new people into downtown Hamilton and improved the store’s business.

High St. Cafe

After having been vacant since 2007, the building next to Sara’s House sold at full asking price within a month of the store’s opening. Construction immediately began on High St. Cafe, a new restaurant that is slated to open mid-2015.

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Sara’s House

Municipal Brew Works

In addition to the retail announcements for Artspace Hamilton, Sara’s House, and High St. Cafe, a new craft brewery was announced for the former municipal building. Municipal Brew Works will brew beer and have a tap room at this location, which is slated to open in the fall of 2015.

150 High Street

A local couple announced their plans to open Jackson’s Market and Deli in the former Elder Beerman building which is owned by the Hamilton CORE Fund. The 3,000 sq. ft. grocery will feature local and organic products and is expected to open mid 2015.

Another tenant for the building announced in 2014 was Joslin Diabetes Center.

Land Bank

In 2014, the City of Hamilton’s Land Bank demolished 116 blighted properties and 22 became side yards for neighbors or transferred to non-profits. Since many of these are in the urban core, removing these properties assists in redevelopment efforts.

“We are consistently performing better in Hamilton as an independent store than we did in Bridgewater as part of a large shopping center.”

- Sara Vallandingham, Owner of Sara’s House. “As CORE Fund grows, director separates for-profit, nonprofit work,” Chelsey Levingston, Journal-News, July 9, 2014

Construction at Artspace Hamilton

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Infrastructure Improvements $11 million invested in the East High Street Corridor

#1

first public CNG fueling station in Greater Cincinnati

1911

year the first time SHX was proposed

Infrastructure, from the road network to the fiber network, is critically important to economic development. The City of Hamilton made great strides in 2014 to improve its infrastructure.

East High Corridor

The City began extensive construction on the East High Street Corridor in 2014. In 2011, Hamilton’s largest employers identified improvements to this corridor as a top priority. The corridor is an important entrance into Hamilton and this project will improve traffic flow and enhance the streetscape. Improvements include landscaped median, street trees, under-grounding utility lines, upgrading the utility services, adding new turn lanes, and adding a new commercial access drive. The East High Street Corridor project and the connected improvements at the High St./MLK Blvd. intersection represent over $11 million in investment.

South Hamilton Crossing

The City of Hamilton has recognized the unsafe conditions at the existing rail crossing at Central Avenue and Pleasant Avenue since 1911, but progress made in 2014 makes a solution closer than ever before. South Hamilton Crossing, or SHX, will replace the at-grade railroad crossing with a railroad overpass created by extending Grand Boulevard to the west. In late 2014, the $30 million project received $10 million from the Ohio Department of Transportation. SHX is anticipated to greatly improve access to Vora Technology Park, University Commerce Park, and Miami University-Hamilton.

The project is now over 80% funded and will move forward with a completion date in late 2017.

Third Street Corridor

A $2.6 million improvement project is underway on Third Street throughout downtown and German Village. Near Community First Solutions’ new headquarters, better electric conduit and new decorative streetlights were installed and all distribution poles, old streetlight poles, and overhead wires were removed. In German Village, three plaza areas will be added to enhance the aesthetics of the area and provide a space usable for community activities. The German Village plazas are a collaboration with the Hamilton Community Foundation and the Lane Library. The utility improvements downtown will be complete March 2015 and the German Village plazas will be complete in late 2015.

Meldahl

Construction moved forward on the Meldahl Hydroelectric Facility in 2014. This $500+ million, Hamilton-owned facility will be the largest hydroelectric facility on the Ohio River. Once it is completed in mid 2015, it will generate enough electricity to power approximately 45,000 homes annually and 70% of the power the City generates will be from renewable sources.

Hamilton’s new CNG station

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CNG Fueling Station

In late 2014, the City of Hamilton opened Greater Cincinnati’s first public CNG fueling station. CNG is less expensive than gasoline, increases the time between maintenance, lowers emissions, and is safe. It is the same natural gas that heats homes. The City of Hamilton is working with local businesses to create fleet fueling partnerships.

Fiber Optics

Hamilton has over 60 miles of city-wide, loop-fed fiber optics that the City intends to utilize for economic development.

In 2014, the City signed a deal with SWOCA to provide broadband service to local schools. Local business CenterGrid also began utilizing the fiber network to provide internet service for the Hamilton Mill and TvHamilton. Centergrid also expanded in Hamilton in 2014. In the past two years, CenterGrid has hired 15 new people and invested $5 million in its data center operations.

“It’s a project that obviously, the city has been interested in for a long time, and the district came online to show that we were really serious and this was an important project for the region and county. It also connects that whole section of Hamilton to the east, which ultimately has a much better connection to Bypass 4, so it makes the network function better.”

- Dave Spinney, Butler County Transportation Improvement District, “State OKs $10 million for fixes at ‘dangerous’ railroad crossing,” Vivienne Machi, Journal-News, March 2, 2015 Rendering of South Hamilton Crossing

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Excellence in Economic Development 2014

2014

GOLD

BRONZE

2013 Gold in Public Private Partnership Category 2013 Silver in Special Purpose Brochure Category 2014 Gold in Annual Report Category 2014 Bronze in Sustainability Category

Economic Development Jody Gunderson

Economic Development Director

Stacey Dietrich Dudas

Economic Development Specialist

Liz Hayden

Business Development Specialist

Karen Bowling

Administrative Secretary

Chris Lawson

Executive Director, Hamilton Mill

Antony Seppi

Operations Director, Hamilton Mill econdev@hamilton-oh.gov www.hamiltonohiobusiness.com 513-785-7070

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