Presentación Dra. Eloisa Klementich, Directora de Desarrollo de Negocios, Invest Atlanta

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