Transformation
Annual Report 2014 - 15
Table of Contents 1. . . . . Letter from the Chairman 2. . . . .Transformations 3. . . . .Attraction, Retention & Expansion, Wins 4. . . . . Marketing 5. . . . .Business Highlights 6. . . . . Statistics 8. . . . .Executive Committee 9. . . . . Board of Directors 10. . . . .Advisory Board 11. . . . . LSEDC Staff 12. . . . . Investors
Letter from the Chairman
Brad Cox 2013-15 Chairman
In case you’ve been out of town, our organization has undergone just a little change over the last couple of years. I want to take this opportunity to thank our Investors, Advisory Board, Board of Directors, Staff and fellow Executive Committee members for the opportunity to serve as Chair for the last 2 years. Freezing the board positions during the transition from our former President to Rick McDowell seemed like a good idea at the time . . . It was the best for the organization, and it has been a privilege and tremendous fun working with everyone involved. The President transition provided us the opportunity to re-craft the strategic and operational profile of LSEDC to face a new set of challenges that exist in our now-maturing community. This has been difficult, as most of us of a certain age have spent our entire career in a “green-field, full-steam-ahead” development of our city. Now that we have matured, both as investors and as a community, we have a different set of challenges, and if they are properly met, new opportunities ahead of us. We, of course, started with our own house. After Jim Devine’s retirement and Rick McDowell’s engagement, we looked at staff. Duties have been modified and re-aligned, much for the better, and at this juncture, we are re-examining what we need and want in our Vice-President position. The Executive Committee feels we can leverage much more out of this position in the future and are very excited to see it filled. We changed the engagement with our community partners. Better collaboration with the Chamber and Downtown Lee’s Summit Main Street (DLSMS) has provided a more comprehensive approach to community initiatives and better alignment of resources and defining of objectives. This has also carried over to City Staff and City Council. Our multiple retreats with City Council helped re-affirm respective areas of influence and responsibilities, as well as helped us all, including City Staff, to understand our reliance on each other to successfully continue Economic Development initiatives. Recently, we turned the lens back on our own organization. Our membership is changing, because our community is changing. That will necessitate a different method of investor recruitment. We have to look at new and better incentives, as well as innovative approaches to the old, in order to keep re-investment of existing business here. Retention and expansion will be our biggest challenges going forward, not only because they are inherently difficult, but because the traditional needs of those investors have and will continue to change. Expansion may not mean a new building. It may not mean more employees. But it may mean substantial capital investment in technology and provide spin-off business we could not have anticipated 20 years ago. We have to be ready to encourage, support, and retain this kind of investment to keep our city a viable place to do business. We have plenty of examples all around us of doing it wrong. We have the talent base and commitment in LSEDC, not only to do it right, but better than anyone ever hoped we could. There are the “Broad Strokes” only. There have been many other issues as well as the day-to-day projects that come with Economic Development. There has been and continues to be nary a committee, task force, board, or community initiative that does not see a significant EDC presence in leadership. None of this could have happened without the phenomenal amount of work and commitment from the Executive Committee. I owe each of them a huge “Thank You” for 2 of the most rewarding years I have ever spent. Carry on - it’s important.
Yours Truly,
trans·for·ma·tion /tran(t)sfer’maSH(e)n/ noun noun: transformation; plural noun: transformations
a thorough or dramatic change in form or appearance.
Our Mission Statement has long been thus:
attract and retain business investment and jobs by partnering with allies to create and market a high-quality-of-life, pro-business community. To
W
ebster says that transformation is a thorough, dramatic change in form or appearance. Now, more than ever, we have come to rely on the importance of transformation to move us into the next phase of economic development. One that relies heavily on redevelopment, business retention, and increased marketing efforts. In the past year, we have striven to rebuild relationships, and are fortunate to have great allies in our partnerships with the City, Chamber, Downtown Main Street, the schools, and more than 125 private investors, as well as regional partnerships with Kansas City Area Development Council (KCADC) and Missouri Partnership. All of these will buoy us into a new era, and they are all integral pieces of a puzzle that, when viewed separately, may seem incomplete, but when viewed as a whole, create a picture of economic development that is, simply, transformative.
Lee’s Summit Economic Development Council • 2
attraction In the past year we submitted on several prospects, including: • An internationally-recognized manufacturing company that would create 200 jobs initially and 1,200 by 2020. Capital investment estimated at $70 - $100M. They will build a 1M s.f. facility and add two buildings of 500K s.f. Lee’s Summit is the only site in Missouri being considered. • A KCADC-led project for an education-related company searching for a community that could provide digital content development, sales and marketing workforce. Initially 25 - 50 jobs with an average wage of $75 - 90,000. Kansas City was eliminated for consideration because the company needed a location that provided more international air travel.
retention & expansion We continued to work with several existing-business Lee’s Summit companies, including: • Existing company looking for additional space to expand. Need 12 acres to build 110K s.f., expandable to 160K. Currently employ 220 in Lee’s Summit with an average wage of $60K. Company anticipates adding 70 jobs within the next 5 years. • Existing company considering large amount of capital in this facility, considering sale of property along Douglas Road.
wins • Worked with several long-term investors, including Bennett Packaging, JCI Industries, and Billy Goat Industries. Each company was looking for various incentives that would allow them to remain in Lee’s Summit, and EDC worked closely with them as well as City staff to ensure a satisfactory fit for all. They will all remain in Lee’s Summit, thanks to the diligence of everyone involved.
Lee’s Summit Economic Development Council • 3
marketing • Research confirms that Lee’s Summit has succeeded in creating a unified, progressive identity for our city, thanks to branding efforts. • NorthStar Destination Strategies noted that:
“Lee’s Summit is a benchmark community for marketing implementation and success, having received the highest scores ever recorded.” • LSEDC collaborated with the City, Chamber of Commerce and Downtown Lee’s Summit Main Street to secure the URL for LSMeansBusiness, creating a landing page to direct people to each organization’s website. As of the date the site went live, there have been more than 4 million unique visits monthly, and more than 30 million page views monthly. • In 2014, LSEDC braved new waters by sponsoring ads during the World Series. They ran in the first 2 opening weeks during pre- and post-game live broadcast on over 53 stations in six states including Kansas, Missouri, Iowa and Nebraska.
Place marketing is critical within the
economic development community,
and rightfully so. In a world where marketers typically have one shot to get the attention of - or introduce themselves to - site-selectors, consultants, tourists, or potential workforce, having and presenting a
cohesive and enticing
community identity has profound conscious and subconscious impact.
- Economic News
Lee’s Summit Economic Development Council • 4
EDC has been everywhere this past year. . .
business highlights
Lee’s Summit Economic Development Council • 5
# employees
company
# employees
Lee’s Summit R-7
2,589
National Records Center
550
National Benefits Center
1,325
MCC Longview
397
City of Lee’s Summit
1,153
TMC Lakewood
383
John Knox Village
1,025
Lee’s Summit Medical Center 289
Saint Luke’s East
1,006
Unity
tatistics
2014
P ro s p e c t A c t i v i t y
median home values
New prospects from KCADC =
29
RFIs/proposals submitted =
14
Projects still active =
top industries by percentage: growth sectors
270
$188,600
top 10 major employers
company
The LSEDC has been housed in the historic railroad Depot in downtown Lee’s Summit since 1989.
8 Lee’s Summit Economic Development Council • 6
commuters into Lee’s Summit 2002 2011 1 car = 5,000 commuters *information from Mid America Regional Council A large number of Lee’s Summit businesses operate with fewer than four employees. Thus, we can conclude that the heart of the city’s economic landscape is paved with small businesses and entrepreneurial enterprises.
2014 brought more than
77,014 100% median household income
(highest in the KC metro)
increase from year-to-year in square-footage building permits.
Lee’s Summit biz licenses issued in 2014: 4,525 Total # of businesses: 4,321 *includes General, Building, Residential; Plumbing, Electrical & Mechanical Contractors
number of companies by top industry
- North Star Destination Strategies
business category
# companies
Contractors*
138
Contractors other
124
Food
184
Health
196
Manufacturing
48
Massage Facility
38
Recreation
56
Rentals/Leasing
59
Retail Service Vending Machine Wholesale
# of these located in Lee’s Summit
520 1,149 5 40
2,557
Lee’s Summit Economic Development Council • 7
executive committee
Brad Cox, Chairman
Rick Viar, Immediate Past Chair
Langsford Development
Summit Bank of Kansas City
Bill Brown, Vice Chair
Randall Rhoads, Mayor
Spectrum Strategies
City of Lee’s Summit
Christine Bushyhead, Secretary
Steve Arbo, City Manager
Bushyhead, LLC
City of Lee’s Summit
Gary Hawkins, Treasurer
David McGehee, Superintendent
HSMC Orizon, LLC
Lee’s Summit R-7 School District
Lee’s Summit Economic Development Council • 8
board of directors
Roger Accurso, President
Wayne Forgey, President & CEO
Reinhart Food Service
Bank of Lee’s Summit
Steve Arbo, City Manager
Gary Hawkins, President
City of Lee’s Summit
HSMC Orizon, LLC
Keith Asel, Regional President
David McGehee, Superintendent
Hawthorn Bank
Lee’s Summit R-7 School District
Ron Baker, CEO
Tyler Morehead, Chamber Treasurer
Saint Luke’s East Lee’s Summit
Morehead Agency, LLC
Bill Brown, President
Chip Moxley, President
Spectrum Strategies
Tingle Flooring
Christine Bushyhead, Partner
Randall Rhoads, Mayor
Bushyhead, LLC
City of Lee’s Summit
Will Coates, President
Machelle Riffe, Director of Development
Billy Goat Industries
Riffe Communities
Brad Cox, Vice President
Rick Viar, President
Langsford Development
Summit Bank of Kansas City
Paula Derks, President
Aircraft Electronics Association Lee’s Summit Economic Development Council • 9
advisory board
Darron Ammann, Bartlett & West Phil Bartolotta, Fogel-Anderson Construction Company Brian Barton, MC Power Justin Beets, UMB Bank Kathy Bennett, Bennett Packaging Nancy Blackwell, Chinnery Evans & Nail David Block, Block & Company, Inc. Jason Boyer, Commerce Bank Michael Brown, Frontier Justice John Brown, Hollis & Miller Architects Jay Burchfield, SilverTree Companies David Bushek, Gilmore & Bell, P.C. Stan Christopher, HDR Engineering Bill Clarkson, Jr., Superior Bowen Asphalt Company, LLC Will Coates, Billy Goat Industries Wes Cowan, Space Center Kansas City John Crownhart, Control Service Company Gary Dadey, Zoetis Mark Dawson, KCP&L Edward Desoignie, Heavy Constructors Assn. of Greater KC Jon Ellis, Paradise Park Alan Flory, ReDiscover Jody Fristoe, Downtown Lee’s Summit Main Street Linda Smith, Polytainers, Inc. Linda Harrelson, Summit Christian Academy Todd Haynes, Haynes & Woodward Investment Group Bud Hertzog, Lee’s Summit Animal Hospital Larry Hillier, Equity Bank Lynn Hinkle, Great Southern Bank Moira Holland, McCown Gordon Construction Kathy Hunter, Bank Midwest
Tom Jackson, Central Bank of the Midwest Mike Lally, Olsson Associates Brett Larson, Heartland Business Capital Tom Lovell, Lee’s Summit Parks & Recreation Robbie Makinen, Jackson County Economic Development Eric Mann, RED Development Aaron March, White Goss Bowers March Schulte & Weisenfels Kevin Matson, Plastic Enterprises Co., Inc. Mark Meyer, Meyer Companies Chad Meyer, NorthPoint Development & Briarcliff Realty Jim Moore, Country Club Bank Chip Moxley, Tingle Flooring Joe Mullins, University of Central Missouri Ted Murray, Colliers International John Nguyen, Diodes - FabTech, Inc. Kirk Nooks, Metropolitan Community College Jeff Parker, Government Employees Health Association Laurence Pressly, Industrial Development Authority Dan Rexroth, John Knox Village Mike Riley, Control Service Company John Rowland, Lead Financial Paul Ryan, Metcraft Industries Kirk Sampson, Blue Springs R-4 School District Scott Siemers, Cerner Corporation Matt Sogard, Lee’s Summit Medical Center Jeff Sullivan, Commerce Bank Michael VanBuskirk, Newmark Grubb Zimmer Dan West, J.E. Dunn Construction Company Lynette Wheeler, Truman Medical Center Lakewood Rick Worrel, Affinis
Lee’s Summit Economic Development Council • 10
Rick McDowell
President & CEO Rick joined the LSEDC as President and CEO in August of 2014. He has more than 27 years of experience in economic development in a career that spans employment with the Missouri Department of Economic Development; the Columbia Regional Economic Development, Inc.; KPMG, LLP; Pricewaterhouse Coopers, and 2 years with the Liberty EDC. Rick and his wife Sally have a daughter named Madison, who attends Truman State University. In his free time, he enjoys sports of all kinds.
Shannan Cunniffe
lsedc staff
Manager of Communications & Operations Shannan has over 20 years of experience in office administration and management, the past 12 with LSEDC. In 2013, she transitioned from Office Manager to Manager of Communications & Operations. In her role, she helps write, edit, design and distribute communications for the LSEDC, from e-mail communications to meeting announcements to the organization newsletter as well as the Annual Report. She also manages several events for the EDC. Shannan and her husband Tom live in Lee’s Summit with their 7 year old triplets Simon, Scarlett and Gavin. In her free time, she enjoys yoga, hiking, and cooking.
Tina Chace
Office Manager Tina joined LSEDC in March 2015 with 15 years experience in business administration and accounting with companies such as Associated Wholesale Grocers and TranSystems. Her last 5 years have been spent learning the sales and marketing side of business with Cargill Animal Nutrition where she led campaigns in the equine segment. Most recently, Tina worked as a Marketing Consultant for Etap Communications. In her new role, she will focus on the daily operations of the Council including finances, reporting and event planning. Tina lives in Pleasant Hill with her husband Paul and five children, ages 13-21.
Lee’s Summit Economic Development Council • 11
grand champions
benefactors (cont.)
City of Lee’s Summit KCP&L Lee’s Summit R-7 Schools
Country Club Bank Downtown Lee’s Summit Main Street Fogel-Anderson Construction Co. Frontier Justice Gilmore & Bell, P.C. Great Southern Bank Hawthorn Bank Haynes & Woodward Investment Group HDR Engineering Heartland Business Capital Heavy Constructors Assn. of Greater KC Industrial Development Authority J.E. Dunn Construction Company Jackson County Economic Development John Knox Village Lead Financial Lee’s Summit Journal MC Power Metropolitan Community College Meyer Companies Newmark Grubb Zimmer NextGen Wealth Olsson Associates Paradise Park Plastic Enterprises Co,. Inc. Polytainers, Inc. RED Development ReDiscover Riffe Communities SilverTree Companies Space Center Kansas City Spectrum Strategies Summit Bank of Kansas City Summit Christian Academy Superior Bowen Asphalt Company, LLC UMB Bank University of Central Missouri White Goss Bowers March Schulte & Weisenfels
investors
pacesetters Lee’s Summit Medical Center Saint Luke’s East Zoetis
leadership partners Bank of Lee’s Summit Blue Springs R-4 Schools Central Bank of Midwest Diodes - FabTech, Inc. Equity Bank Government Employees Health Association HSMC Orizon, LLC Langsford Development NorthPoint Development & Briarcliff Realty Reinhart Food Service Tingle Flooring Truman Medical Center Lakewood
benefactors Affinis Aircraft Electronics Association Bank Midwest Bartlett & West Bennett Packaging Billy Goat Industries Block & Company, Inc. Bushyhead, LLC CEAH Realtors Cerner Corporation Commerce Bank Control Service Company
Lee’s Summit Economic Development Council • 12
patrons
investors (cont.)
ACI/Boland Colliers International Emery Sapp & Sons Gale Communities Hollis & Miller Architects HyVee Food Stores JCI Industries, Inc. Lee’s Summit Animal Hospital ServiceMark Telecom Toys R’Us Unitech
Mid Continent Public Library Missouri Gas Energy Parrot Properties Pfeifer-King Building Corp. Power Group Companies Spilker McKeone & Nelson PC State Farm Insurance Unity World Headquarters ViraCor - IBT Laboratories Weed Man/Turf’s Up, Inc.
investors
individual investors
ABI, Inc. Baird Group Real Estate Bob Sight Ford Chief Heating & Cooling, Inc. Chinnery Evans & Nail Curry Investment Company Dave Cross Motors Development Initiatives DLR Group, Inc. First Citizens Bank Geiger Ready-Mix Co., Inc. George Butler Associates, Inc. Grand Street Company, LLC Haynes Benefits PC HG Consult Hunt Midwest Real Estate Development Kelly Construction Group, Inc. L&K Realty Co. Lee & Associates Kansas City Lee’s Summit Chamber of Commerce Lee’s Summit Parks & Recreation LegacyTouch
Doug Bates Don Kahan Jon Plaas Mark Reid David Spellerberg
Lee’s Summit Economic Development Council • 13
816.525.6617 218 SE Main Street - Lee’s Summit, MO 64063 www.leessummit.org