Orlando EDC 2011-12 Annual Report

2011–12 ANNUAL REPORT

PERSPECTIVES Looking at economic development success in a different way

VISION To champion a more prosperous and diverse economy.

MISSION To aggressively attract, retain and grow jobs for the Metro Orlando region.

PERSPECTIVES When measuring economic development success communities tend to concentrate on the numbers. The number of jobs created. The square footage of a building. The amount of capital investment. Although this is very important, as well as necessary, sometimes we forget that these numbers equate to bigger, game changing events – for a person, for a company, for an industry, for a community. If you stop for a minute, change your perspective, and take a look at economic development from another view, what will you see?

As we look back at this past year, we take a look through a different lens. A lens that looks into the heart of the Metro Orlando community and the EDC. During this time, our community welcomed new companies through relocations and expansions. We watched our local companies and their industries grow and expand. We saw job numbers go up and new buildings under construction. All signs point to an improved economy. Our region continues to work together to shepherd this growth and as a result new partnerships and alliances were forged by private, public, academic and governmental agencies.

At the EDC, we increased our investor funding and retention, allowing us to deliver on our goals and accomplish our mission. We made strategic changes based on data and thoughtful decisions. Together, as community leaders, we are ready to lead the economic efforts of this community long into the future.

Within the pages of this report, you will meet people, here in Metro Orlando, who represent the many lives changed – for the better – due to the efforts of this community and your EDC. Their perspectives are what matter and what makes our work so important.

ALEX MARTINS 2011-12 Chairman, Metro Orlando EDC Chief Executive Officer, Orlando Magic

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TIFFANY LEBRON Cash Payment Specialist Prime Therapeutics

CREATING JOBS IS CHANGING LIVES Tiffany Lebron is one of those talented individuals who fell victim to a down economy. After years of looking for a job that matched her skill set, Tiffany is now gainfully employed and helping to support her family.

Tiffany’s story has a happy ending. After being out of work for nearly two years, Tiffany was able to land on her feet at one of Orlando’s newest companies, Prime Therapeutics. “The job market was tough and after applying and interviewing for multiple jobs, I thought I was going to have to settle for something I was completely overqualified for,” says Tiffany. “My experience at another pharmacy benefit management company helped me get this job that matched my skill set.”

Prime Therapeutics is a pharmacy benefit management company dedicated to providing innovative, clinically-based, cost-effective pharmacy solutions for clients and members. Providing pharmacy benefit services nationwide to 20 million covered lives, its client base includes Blue Cross and Blue Shield Plans, employer and union groups, and third-party administrators. Prime Therapeutics’ new 55,000-square-foot building in Orange County will bring 213 new jobs to the region over the next three years, providing people like Tiffany jobs they need to support their families.

“With my job at Prime, I feel I am setting a good example for my children – that it takes initiative to find something that you like to do, and that when you find something you like and are good at it, you can feel good about yourself and are rewarded for it,” says Tiffany.

Prime’s culture and values are a perfect match for Tiffany. She has a clear understanding as to how she can directly contribute to their success and she feels valued for her contributions and has the opportunity to grow professionally. “As Prime continues to grow, the opportunities to change positions or be promoted are great,” says Tiffany. “In fact, I’ve made it my goal to become a supervisor at Prime someday. This company has a lot to offer, and I am excited just thinking about the possibilities.”

Job numbers aren’t just numbers; they are people whose lives are changing for the better. Working to help companies like Prime Therapeutics grow and succeed in our region is changing the lives of people like Tiffany.

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DID YOU KNOW?

THE EDC WORKED WITH

40 COMPANIES WHO PROJECT TO CREATE UP TO

4,604 JOBS OVER THE NEXT THREE YEARS,

$299,841,157 CAPITAL INVESTMENT AND IMPACTING

1,805,549 SQUARE FEET OF SPACE.

A LOOK AT THE NUMBERS There were over 4,600 jobs projected to be created in Metro Orlando over the next three years. That’s a lot of individual stories and lives affected by the economic development efforts of our community. And although that is the theme of this report, we can’t do what we do without reporting the numbers. Despite the continuation of a global recession, we saw a positive change in the economic landscape. Prospect activity increased and the number of projects the EDC worked on doubled since last year.

In collaboration with state, regional and government partners, the Metro Orlando EDC played a key role in establishing 40 projects this year. This translates into 4,604 jobs projected to be created over the next three years, $299,841,157 in capital investment and 1,805,549 square feet of leased or purchased space.

The complete list of companies assisted by the EDC this year ranges from corporate headquarters and manufacturers to specialty pharmacies and a handful of business services leaders. They include: 3vNet AcariaHealth Pharmacy, Inc. AJT Systems Allegra Direct Communications American Academy of Optometry APTIMA Axium Healthcare Pharmacy, Inc. Banker Steel BBA Aviation Benecard PBF

Captel Service Specialists, LLC Catamaran ClearView Systems, Inc. Cole Engineering Services, Inc. Design Interactive FAZ Technology Fusion eSolutions, LLC G5 Engineering Solutions, Inc. Global Promo Havok LightPath Technologies, Inc. Marjam Supply Company, Inc. Mazor Robotics, LLP National Air Cargo Holdings, Inc. Paylocity Pershing, LLC Planet Hollywood International, Inc. Priceline.com, Inc. Primal Innovation Prime Therapeutics, LLC ProActive Technologies, LLC Publix Ravago Americas Signature Systems Group, LLC Stirling Dynamics Storage Management and Leasing Village Farms International, Inc. Wisdek Corporation Wyndham Vacation Ownership XOS Digital, Inc.

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JILLIAN STEIN Owner Flies with Honey Productions

SETTING THE SCENE FOR FILM Los Angeles-based film and television company owner Jillian Stein was thrilled to return to her home state of Florida to work on the production, Frank vs. God. After experiencing Metro Orlando’s film and television industry she can’t wait to come back.

Florida native Jillian Stein’s film and television career started in New York City working on set and in offices for well-known film productions including Spiderman, Spiderman II, Maid in Manhattan and Mona Lisa Smiles. She later moved to Los Angeles where she created her own independent film and television company, Flies with Honey Productions.

When writer and director Stewart Schill offered Jillian the opportunity to work with him, executive producer Ralph Clemente and producer Dan Springen as the creative producer for their new project Frank vs.

God, she jumped at the chance. She loved the script and was excited by the idea of working in her home state of Florida. The family-friendly, romantic comedy stars Henry Ian Cusick — best known for his Emmynominated portrayal of the character Desmond on Lost and his work as Stephen on Scandal.

For over four months in 2012, Jillian and the crew of Frank vs. God prepped and shot in various locations around Metro Orlando, including Orange County and Osceola County. “We had the best experience filming in Orlando,” said Jillian. “The variety of locations is amazing. We found everything we needed centrally

located.” And when they couldn’t find what they needed, they relied heavily on the Metro Orlando Film Commission. “The Film Commission was invaluable throughout the entire process,” said Jillian.

“They bent over backwards and helped save time and money.”

Jillian was impressed with the level of professionalism and talent found in Central Florida and looks forward to her next project here. “There are so many excellent, seasoned crew from Los Angeles that have made Florida their home,” said Jillian. “Mix this with the young, up-and-coming talent graduating from Central Florida’s film schools and you have one great crew.”

In addition to plentiful locations, film commission assistance, and qualified crew, Jillian felt the overall support provided by the Metro Orlando community and vendors was unmatched. She said, “From the help we received from Universal Studios, to local casting agencies and other vendors, the Metro Orlando film and television community impressed us over and over again. We could not have done it without them.”

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DID YOU KNOW?

THE METRO ORLANDO FILM COMMISSION’S TIRELESS WORK RESULTED IN

701 PERMITTED PRODUCTION DAYS, UP

62% FROM LAST YEAR.

A LOOK AT OUR FILM AND TELEVISION INDUSTRY This was a very strong year for Metro Orlando’s film and television industry. In fact, after several years of not being listed, Florida is now ranked the No. 3 state for film production, according to P3 Update.

The Metro Orlando Film Commission’s tireless work resulted in 701 permitted production days, up 62 percent from last year.

In addition to several independent films shot throughout the region, two MTV series – The Inbetweeners and WakeBrothers – filmed their entire seasons here. Students studying film and digital media at local schools, including Full Sail University, University of Central Florida, Valencia College and the DAVE School had a multitude of opportunities in 2011–12 to gain hands-on experience.

This year, in a bold move guided by a committee of local industry leaders, the Metro Orlando Film Commission changed its annually printed filmbook to a newly enhanced, fully online version. The benefits of the online filmbook include increased search engine optimization and a variety of a-la-carte options to enhance listings, including video uploads.

Here’s a list of this year’s film project highlights: COMMERCIALS: Adidas Carnival Cruise Florida Lottery Harley Davidson Home Depot Icy Hot John Deer Progress Energy Rapala TELEVISION: Dr. G Medical Examiner Dream Date Challenge Fix This Yard House Hunters International Teen Mom 3 The Inbetweeners The Next Wake Brothers FILM: Frank vs. God Missionary Ring the Bell

9

DR. KAY STANNEY President and Founder Design Interactive, Inc.

REALIGNING BUSINESS TO STAY COMPETITIVE Kay Stanney’s modeling, simulation and training company is hiring new employees and prospering despite threats of cuts to the defense industry. By taking advantage of other thriving industries in Metro Orlando and realigning lines of business, her company is growing by leaps and bounds.

Dr. Kay Stanney has been making her mark on Metro Orlando’s modeling, simulation and training (MS&T) industry for over a decade. Her Oviedo-based company Design Interactive has a long record of success in delivering performance enhancing training solutions to all levels of government, military, and commercial organizations. They have won numerous awards and were recently named one of Military Training Technology magazine’s “Top Simulation & Training Companies.”

Despite a volatile economy and threats of major cutbacks to the nation’s defense industry, Kay has not only stayed afloat, but grown her company. “Last year was very difficult,” said Kay. “Together with a wonderful bank partner, we were able to hold on through the tough times and now we are ready to grow and expand.” In the coming months the firm will hire 12 new simulation and software employees with help from the City of Oviedo’s Jobs Growth Incentive and the State of Florida’s Qualified Target Industry Tax Refund program.

Design Interactive is taking advantage of new growth and success in some of Metro Orlando’s developing industries and is realigning the company’s lines of business. Originally focused exclusively on government, defense related contracts, Design Interactive recently added medical simulation and other emerging commercial markets to their portfolio.

This is a common trend within Metro Orlando’s MS&T industry and one that the EDC helps to facilitate.

Widely considered the nation’s epicenter for MS&T, Orlando is also home to a booming life sciences cluster. The convergence of the established MS&T and healthcare industries combined with an emerging digital media industry are bringing new innovations to life and providing a very unique opportunity for companies like Design Interactive to grow.

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DID YOU KNOW?

THIS YEAR IN METRO ORLANDO,

NEW PARTNERSHIPS WERE FORGED;

INNOVATIVE INSTITUTES OPENED; AND OUR

ACADEMIC INSTITUTIONS RANKED AMONG THE BEST.

A LOOK AT REGIONAL ACHIEVEMENTS Metro Orlando’s economy continues to improve.

Companies are growing, expanding and benefitting from regional achievements and growth in industry sectors. Here is a sampling of important things that happened around the region in 2011–12: • Seminole County-based BlueChip Energy received approval for the largest privately owned solar farm in the State of Florida and one of the largest in the United States, to be located in Lake County.

• The former Amway Arena was demolished making way for the City of Orlando’s Creative Village, now under construction.

• Full Sail University announced 99 graduates worked on 28 projects nominated for Oscars®, and 71 graduates worked on 52 GRAMMY nominated projects. In addition, ESPN and Full Sail University unveiled the new Full Sail University Sports Lab Powered by ESPN and WWE and Full Sail University announced a partnership that moved live tapings of the WWE NXT series to the university’s state-of-theart performance venue.

• The University of Central Florida, the 2nd largest university in the nation, and EA Sports teamed up to ensure Orlando continues to be a hub for digital media by creating the EA Sports Innovation Lab at the UCF Center for Emerging Media.

• Lake Nona Medical City celebrated the openings of the University of Florida Academic and Research Center, Valencia College and Nemours Children’s Hospital.

• Lake-Sumter Community College celebrated its 50th anniversary and changed its name to Lake-Sumter State College.

• The Orange County Convention Center hosted one of the largest trade shows in the country, the National Plastics Expo.

• Three Team USA track and field athletes in the summer Olympics trained at Lake County’s National Training Center, part of South Lake Hospital in partnership with Orlando Health.

• This is the eighth consecutive year that Rollins College has been ranked No. 1 in the South in U.S. News & World Report.

• Seminole State College became the only college in the nation with seven consecutive Jack Kent Cooke Undergraduate Transfer Scholarship winners. The program, worth $30,000 annually, is considered the most prestigious in the nation for transfer students.

• Construction began on SunRail, Central Florida’s commuter train system which will be operational beginning in 2014.

• The Translational Research Institute for Metabolism and Diabetes (TRI), an innovative affiliation between Florida Hospital and Sanford-Burnham Medical Research Institute, opened its doors.

• Valencia College was named the nation’s best community college by the Aspen Institute.

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BOB ALLEN Chief Storytelling Officer IDEAS

VERNICE ATKINSBRADLEY President & CEO Votum Construction

DAVID FULLER Chairman, President & CEO SunTrust Bank Central Florida Division

INVESTING IN OUR COMMUNITY EDC investor companies come in all shapes and sizes. One thing they all have in common is they support our mission and understand the concept “a rising tide lifts all boats.”

When Vernice Atkins-Bradley, President and CEO of Votum Construction, started her own company a few years ago, she ensured that her budget included an outlay for the EDC. “During a down economy you cannot afford to decrease your investment of time and money in community organizations such as the EDC,” says Vernice. “Conversely, you must continue to support organizations like the EDC which are more important than ever when the economy is weak.” This sentiment is echoed by EDC investors and is evident in the EDC’s retention rate.

David Fuller guides SunTrust Bank’s Central Florida Division under the philosophy “build your community and you build your bank.” It’s this philosophy that drives David and SunTrust’s investment in the EDC and their continued commitment to our mission.

David sees the importance of participating on the EDC’s board and engaging in events, including the annual leadership mission. This past year, David travelled with over 90 Metro Orlando leaders to Austin, Texas to learn and share with this robust community. “Every community has strengths that we can learn from and you get a better perspective of what we are doing right here in Central Florida,” said David. “These trips and other EDC events are important to engage in for the opportunity to share

ideas and learn from one another.” While specific companies might not see the direct effects of EDC investment every day, they ultimately benefit from the long term outcomes.

Bob Allen, Chief Storytelling Officer at IDEAS, has a long history of involvement in the EDC and supporting the Metro Orlando Film Commission. He understands that we can’t do what we do without the support of all industries, especially those creative industries that are well represented in Metro Orlando. “There is a great fusion of industry here,” Bob says. “There is an immense brain trust of business, government and industries in Metro Orlando supporting the digital media industry that is hard to find anywhere else and that is why we continue to thrive here. Investment in the EDC ensures the smart, sustainable economic growth that improves the business climate and quality of life.”

Investing in the EDC supports a strong public-private partnership that addresses business climate issues, supports the local economy and facilitates regional collaborations. These three investors are a very small sampling, but the perfect example of community and industry leaders who “get it.”

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DID YOU KNOW?

THIS YEAR THE METRO ORLANDO EDC HONORED COMMUNITY AND INNOVATION LEADERS AT

SOLD OUT EVENTS; HOSTED THE LARGEST-EVER DELEGATION ON A

LEADERSHIP MISSION TO AUSTIN; AND INCREASED

INVESTOR FUNDING AND RETENTION RATE.

A LOOK AT OUR ORGANIZATION In 2011–12 the EDC’s team welcomed important groups from around the world; participated in trade shows and conferences promoting the Metro Orlando brand; and hosted stellar events attended by the region’s business and community leaders. With fewer resources, the EDC successfully partnered with state and local economic development organizations to leverage efforts for maximum impact.

RealScreen, South by Southwest, SPIE Photonics West and the World Congress on Industrial Biotechnology and Bioprocessing.

• Hosted promotional events in conjunction with the Arnold Palmer Invitational, Site Selectors Guild and CoreNet Global.

Here is a sampling of important things the EDC was involved in:

• EDC President and CEO, Rick Weddle, elected the first American President of the International Association of Science Parks (IASP).

• Hosted the largest-ever delegation on the Leadership Mission to Austin, Texas, focusing on talent development and attraction.

• New investor funding was up 27 percent from last year. Investor retention rate was 92 percent, compared to 90 percent last year.

• Honored Pat Engfer, general manager of the Hyatt Regency Orlando International Airport, with the James B. Greene Award, the highest award bestowed by the EDC.

• The EDC exceeded all 2011-12 performance metrics and outperformed the previous year.

• Honored Florida Hospital, Hernon Manufacturing, LightPath Technologies, Skybolt Aeromotive Corp. and EA Sports with William C. Schwartz Industry Innovation Awards.

• Promoted Metro Orlando while on-the-road at trade shows and conferences, including: Armada Specialty Pharmacy Summit, BIO International, CoreNet Global Summit, Game Developers Conference, Independent Film Week, Montreal International Game Summit, National Association of Television Program Executives (NATPE), 17

A LOOK INTO OUR FUTURE The EDC’s strategic approach is simple and straightforward: understand and improve the region’s competitive position over time; build on the assets and strengths we have today; establish clear and measurable goals and objectives; leverage efforts and partner with others whenever possible; market and merchandise the region’s relative advantages to clearly defined target audiences, both in and out-of-market; achieve high impact goals; and monitor progress, evaluate effectiveness, assess positive impacts and report results.

Retention and Expansion: The EDC retention and expansion model will be best in class and highly effective at supporting expansions and mitigating retention risks.

Here is an overview of the organizational vision and strategic focus through 2016-17:

Recruitment and Attraction: The EDC will be widely regarded by decision-makers and advisors as a highly professional, credible and effective one-stop “go to” organization.

Long-Term Strategy: The Governors Council’s strategic framework drives EDC action plans which are organized around a recurring five-year planning cycle.

Film Marketing and Development: The EDC will elevate Film Orlando as a regional platform that generates quality film-related economic growth and impact.

Regional Branding: The Metro Orlando brand will be extended to position the region as a cutting-edge thought leader and welcoming to businesses and residents.

Leadership Engagement: The EDC will become the region’s leading economic development platform for offering engagement of business and government leaders.

EDC Brand: The EDC will be recognized as the nation’s preeminent regional economic development organization.

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Innovation Ecosystem: The EDC will lead efforts to elevate Orlando as a leading global growth and development center for advanced and emerging technologies.

“Economic development is a passionate effort. You must celebrate your successes, learn from your setbacks and keep moving forward. You try to remember that it is more than numbers and focus on the lives you are impacting and the community you are serving. It’s an exciting time for our organization and Metro Orlando and I am proud to lead this effort and call Orlando home. The EDC must continue to be highly focused and work every day in a smarter and more effective way. We will continue to benchmark key competitors, assess market opportunities and achieve ambitious goals that make a positive and measurable impact on our region.”

RICK WEDDLE President and CEO, Metro Orlando EDC

FINANCIAL REVIEW The EDC ended its fiscal year on September 30, 2012 having met its key financial goals for the year. Private sector support accounted for 69 percent of total revenue and 31 percent came from local government contracts with Orange, Seminole, and Lake Counties and the City of Orlando. Seventy three cents of every dollar raised directly supported the economic development mission. The organization planned for an excess of revenue over expenses to rebuild cash reserves that had been depleted during the economic downturn. The EDC has added $200K to the reserves - exceeding the goal of adding $100K to reserves by September 30, 2012.

REVENUE 2011-2012

16%

31%

69%

Private Funding............. $3,402,098 Public Funding.............. $1,546,265 Total Revenue................ $4,948,363

73%

EXPENSES 2011-2012

11%

Economic Development................. $3,356,966 Investor Relations & Events .......................... $742,101 General & Administrative................... $529,548 Total Expenses.............. $4,628,615

+

$319,784 These results have been confirmed by our auditing firm Cross, Fernandez and Riley, LLP. EXCESS (DEFICIT) OF REVENUE OVER EXPENSES 2011-2012 20

2011-12 EDC BOARD OF DIRECTORS EXECUTIVE COMMITTEE CHAIR Alex Martins Orlando Magic VICE CHAIR Lars Houmann Florida Hospital SECRETARY/TREASURER Scott Faris Astralis Group LLC PAST CHAIR David G. Pace CBRE Kelly Cohen Southern Strategy Group Bruce Douglas Harvard Development Company Jim Etscorn Baker & Hostetler LLP David Fuller SunTrust Bank, Central Florida Division John C. Hitt University of Central Florida Anthony Massey Massey Services, Inc. E. Ann McGee Seminole State College of Florida Kathleen Gallagher McIver Orlando Regional Realtor Association Harold Mills ZeroChaos Charles R. Mojock Lake-Sumter State College Ramon Ojeda Hispanic Chamber of Commerce of Metro Orlando

Clarence Otis, Jr. Darden Restaurants, Inc. Michael Poteshman Tupperware Brands Corporation Ken Potrock Walt Disney World Resort Geoffrey B. Rogers Full Sail University Denise Saiki Lockheed Martin Sherrie Sitarik Orlando Health Thomas K. Sittema CNL Financial Group Ann Sonntag Orlando Business Journal Rasesh Thakkar Tavistock Group Larry Tobin Fairwinds Credit Union

BOARD Vernice Atkins-Bradley African American Chamber of Commerce of Central Florida Tim Baker Baker Barrios Architects

Leslie Campione Lake County Board of County Commissioners John Cascio Smart City Melanie Cornell HKS Architects, Inc. Larry A. Dale Sanford Airport Authority Bob Dallari Seminole County Board of County Commissioners Lewis M. Duncan Rollins College Elizabeth Dvorak Workscapes Inc. Mayor Buddy Dyer City of Orlando

Barbara Jenkins Orange County Public Schools Tony Jenkins Florida Blue Avido Khahaifa Orlando Sentinel Communications Kenneth Ksionek OUC—The Reliable One Frederick W. Leonhardt GrayRobinson, P.A. Kimberly Maki Bright House Networks Nan McCormick CBRE F. David McKinney BB&T-J. Rolfe Davis Insurance Susan E. Moxley Lake County Schools

William T. Dymond, Jr. Lowndes, Drosdick, Doster, Kantor & Reed, P.A.

Karl Nebel North Highland

Orlando Evora Greenberg Traurig

Larisa Perry Wells Fargo

J. James Gaynor LightPath Technologies, Inc.

Terry Prather SeaWorld Orlando

Walt Griffin Seminole County Public Schools

Gail Rayos Asian American Chamber of Commerce

Larry Henrichs Visit Orlando

Shawn Bartelt WFTV-Channel 9/ WRDQ-Channel 27

Marc Hoenstine Progress Energy

Cecelia Bonifay Akerman Senterfitt

Anthony Iorio AV Homes Inc.

Denny Bowman Florida Business Interiors

Mayor Teresa Jacobs Orange County Government

Phillip Brown Greater Orlando Aviation Authority

Steven Jamieson The Mall at Millenia

Brian Butler JCB Construction, Inc.

Jim Jardon, II JHT, Inc.

Reagan Rick Fifth Third Bank Sanford C. Shugart Valencia College Robert L. Thompson Thompson Wesley Wolfe, LLC Robert Utsey Skanska USA Building, Inc. Leighton Yates Holland & Knight, LLP

301 East Pine Street, Suite 900 • Orlando, FL 32801 • 407.422.7159 • orlandoedc.com