Building a 21st Century Regional Economy
Ideal State: Jobs and Competitiveness Technology, Innovation
Balanced Growth
Investment
Dynamic Growing Economy Education
Housing
Infrastructure, Transportation
Reality Check: Economic Cycle
Business-cycle-graph better.jpgimagesndibeconomics.wikispaces.com.
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Reality Check: Business Life Cycle
SBA estimates that the average life cycle of a business is 7 years 4
Why Economic Development
•
Job creation/retention
•
Increased investment
•
Increased quality of life
•
Broaden the tax-base
To drive an economically dynamic and competitive city
Cycle of Economic Development
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Case Study: City of Atlanta
Reality Check: Economic Development Efforts
According to the US Census Bureau, this is the number of municipal governments in the United States Data based on the most recent survey (2007
)
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Reality Check: Gross Domestic Product (GDP) Atlanta MSA GDP $310 $307.20 $305 $300 $296.30
$295
$290 $285
$284.60
$280 $277.30 $275 $270 2010
Source: BEA Amounts in Billions
2011
2012
2013
Underutilized Property and Talent Vacancy Rate for the Built Space Office Industrial
Source: Neighborhood Nexus: March, 2015
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SF Vac % 11.5m 13.7% 2.8m 7.5%
Economic Development Strategies/ Organization
R e t e n ti o n
E x p a n s i o n
A tt r a c ti o n
C r e a ti o n
Economic Development
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City of Atlanta
• 447,000 People • Headquarters of Coca-Cola, Delta, Sun-Trust, CNN • Home to the World’s Busiest Passenger Airport
Metro Atlanta
• 5.4 Million People • 9th Largest Metro Area in U.S. • 2.9 Million Jobs
State of Georgia
• 9.9 Million People • 32 Fortune 1000 Headquarters • 35 Public Colleges and Universities
The Experts Agree on Atlanta‌ #1
Lowest Cost of Doing Business Major U.S. City, KPMG, 2014
#1
Best City to Start a Business, Nerd Wallet, 2013
#1
Top City for Young Entrepreneurs, Under 30 CEO, 2013
#3
City for Global 500 Headquarters, FORTUNE, 2014
#3
City for FORTUNE 500 Headquarters, FORTUNE, 2014
Atlanta is the business center of the Southeast. 42 Bi-national chambers of commerce 1.9 Million jobs forecast to be created by 2040
6th District of the Federal Reserve Largest economy in the SE – GDP of $307.2 billion 10th Largest economy of all metro areas in the U.S.
8.4 Million Residents in metro area by 2040 1.3 Billion SF of commercial real estate in metro area
Invest Atlanta’s VISION Our vision is to make Atlanta the most economically dynamic and competitive city in the world.
Capital Investment Since 2010, Invest Atlanta has generated $1.81 Billion of real estate investment and business activity 87 Business Attraction Wins
• Spurring $309,622,074 in Investment
• Spurring $1,064,000,000 in Investment
12 TAD Projects Closed • Spurring $80,687,583 in Investment
3 New Market Tax Credit Deals Closed
23 Housing Projects Financed
543 New Homeowners • Spurring $69,673,245 in Investment
35 Small Businesses Financed • Spurring $12,035,243 in Investment
• Spurring $221,186,000 in Investment
29 Park Acquisitions • Spurring $13,808,447 in Investment
Organizational Structure
Housing Finance
Business Development
Legal
Redevelopment
Finance 17
Atlanta is particularly attractive to firms in six key sectors Economic development efforts should focus on growing:
1. Digital arts and new media production 2. Life sciences
3. Applied computational processing and engineering 4. Corporate headquarters and professional and management services 5. Advanced logistics 6. Conventions and tourism
Digital arts and new media production • • • •
Motion picture production Software and computer programming Audio production Broadcasting
Life sciences • • • • •
Medical devices Biological products Medical laboratories Biotechnology R&D Pharmaceuticals
Conventions and tourism • • • •
Hospitality Attractions and conferences Food and beverage Transportation
Corporate headquarters and professional and management services • Headquarters and back office • Management consulting
Advanced logistics • Freight air transportation • Distribution and logistics consulting services
Applied computational processing and engineering • • • • • •
Engineering services Computer systems design services Scientific R&D Advanced manufacturing Financial technology Health information technology
We have the 3rd most Fortune 500 headquarters in the nation.
Programs for Business Attraction Site Selection Assistance Economic Opportunity Fund Bonds Workforce Training Tax Incentives
Loans
BUSINESS RETENTION & EXPANSION PROGRAM OVERVIEW Operates as IA’s Business Customer Service Program
Business Outreach & Contact
Interview, Survey & Assessment
Recommendations and Referrals
Action Planning
Follow up and Review
Assess and Report Economic Impact
Innovation in Atlanta From 2007 to 2012
Population of adult workers grew four percent
Population of highly educated adults grew eight percent.
Total university R&D expenditures reached nearly $2 billion dollars in 2012
Patent activity has more than doubled, increasing 106%
Atlanta’s Workforce 46% of City Residents Hold a Bachelor’s Degree or Higher
66 Colleges and Universities Educate 275,000 Students Annually
#5 in the U.S. for Number of Computer Science/IS Degrees Awarded
7th Highest Student Enrollment Among America’s Largest Urban Areas
Georgia Tech’s Computer Science Degree Has the Highest Job Placement Rate of Any Major at Tech
Entrepreneur Eco-System Policy •
Business
Demonstration Project
•
Startup Tax Exemption Startup Atlanta Roadshow
•
Events • •
GovAThon SwitchPitch
Financing • •
Debt Cash Flow
Other • • • • •
Source: Jumpstart
Startup Atlanta Entrepreneur Center WEI SQ5 Innovation District (proposed)
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Pledge
City of Atlanta & Google Fiber DESCRIPTION: Atlanta was chosen to be an Upcoming Fiber City which means connections up to 1,000 megabits (Gigabit Internet) per second. GOALS: 1. Connect Communities 2. Support Small Business 3. Spur Innovation
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And we’re home to the stars of the tech world.
Accomplishments •
Govathon IV – –
•
Govathon III/Transportation Camp – –
•
Hosted at GT Focused on transportation issues
Govathon II – –
•
Hosted at Workforce Dev. Agency SMS texting system which tracks the status of a building permit
Atlanta Budget Explorer vs Traditional City Budget Document Hosted in the Old Council Chambers
Govathon I – – –
iParcs Crime Blotter(purchasable in App Store) Hosted in Old Council Chambers
3 Phases of a Simplified Innovation Process
Conception
Source: Jumpstart
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City of Atlanta Innovation Center: Demonstration Project DESCRIPTION: Allow entrepreneurs within the proof of concept phase of their development to test their product using City of Atlanta resources. GOALS: • Create new markets and new jobs • Support existing local innovators and Entrepreneurs • Improve quality and efficiency of City services and operations • Advance the City’s Sustainable Initiatives and economic development strategy • Position Atlanta as a location for cutting edge innovation • Retain entrepreneurs in the City of Atlanta • Attract and maintain investments as a result of new innovations • Create a collaborative community of relationships between government and entrepreneurs
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City of Atlanta Innovation Center: Startup Atlanta Ordinance DESCRIPTION: An ordinance to amend the Occupation Tax Ordinance to provide a tax exemption for new and emerging technology businesses. GOALS: 1. Job Creation 2. Retention of entrepreneurs 3. Encourage investment in certain types of businesses in fields related to high technology, life sciences, information technology and intellectual property 4. Catalyze Atlanta’s entrepreneurial ecosystem 5. Position Atlanta as a location for cutting edge innovative companies
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The Opportunity of Women in Entrepreneurship The percentage of men and women involved in early-stage entrepreneurial activity
Men Women
2011 13% 11%
2012 15% 11%
Do you want to start a business in the next three years? (Source: How Women Entrepreneur Can Make a Difference)
1 in 5 men
1 in 13 women
City of Atlanta Women’s Entrepreneur Initiative (WEI) DESCRIPTION: A public private partnership to support the growth of women entrepreneurs. GOALS: 1. Provide Innovative Workspace 2. Mentorship 3. Access to Experts 4. Programming PARTNERS: Home Depot, UPS, Hawks, Invest Atlanta and more 35
Square on Fifth: the Dormcubator DESCRIPTION: Next to Georgia Tech, the 25 floor dormcubator will provide entrepreneurs with the opportunity to innovate right where they live.
GOALS: 1. Drive Innovative Collisions 2. Entrepreneur environment 3. Place to live
INCENTIVE: Lease Purchase Bond
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Flatiron Entrepreneur Center DESCRIPTION: An entrepreneur center with the second Microsoft Innovation Center in the US GOALS: 1. Provide affordable rent 2. Short Term Leases 3. Flexible Office Space 4. Entrepreneur Network 5. Entrepreneur Environment INCENTIVE: Tax Allocation Incentive
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There’s never a boring second in Atlanta.
The Value Add of Economic Development
Facilitated 3,973 direct jobs and 4,935 indirect and induced jobs
Invest Atlanta’s investments of nearly $45M helped to leverage over $662M in private investment
Supported $2.5B in Total Economic Impact
Invest Atlanta 2014
IMPACT
Generated over $129M in State and Local Taxes
2014 Business Attraction Results
32 project wins and $184.9 in Capital Investment Facilitated 3,853 direct new jobs, 199 retained jobs and 3,376 indirect/induced jobs Absorbed 1,229,450 sq feet Generated over $25 million in new local taxes to the general fund
Return on an Economic Development Services Investment
For this 4 year period, for every $1 invested the City received over $13 in local taxes
Business Development Economic Impact $2,500,000,000
$1,937,027,043
$2,000,000,000
$1,775,431,503
$1,500,000,000
$1,000,000,000 $738,593,674
$500,000,000
$0
Based on an IMPLAN analysis
2012
2013
2014
Long Term Investment For Economic Growth Economic Development Investment In Millions $25.0
$20.0 $20.0
$15.0
$10.0
$9.0
$4.7
$5.0
$4.0 $3.0
$2.7
$2.0
$1.9
$1.3
$1.0
Colorado Springs
Indianapolis
Tulsa
$0.0 St. Louis
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Louisville
Cincinnati
Detroit
Atlanta (2015)
Charlotte
Milwaukee
IEDC, 2009 . Atlanta's investment represents the City's 2015 proposed contribution excluding the Economic Opportunity Fund.
Thank you!
Dr. Eloisa Klementich, Managing Director Business Development 133 Peachtree Street NE, Suite 2900 Atlanta, GA 30303 (404) 880-4100 www.investatlanta.com