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HomeMy WebLinkAboutSPAC.2013.0116.Minutes _ TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING January 16,2013 AGENDA ITEM#1—CALL TO ORDER Chair Nick DePorter called the meeting to order in Council Chambers at Town Hall at 4:07 p.m. AGENDA ITEM#2—ROLL CALL Present for roll call were the following members of the Strategic Planning Advisory Commission: Chair Nick DePorter and Commissioners Peter Bordow, Mike Dooley, and Curt Dunham. Vice Chair Audra Koester Thomas joined the meeting at 4:08 p.m. Commissioner Magazine attended via teleconference. Commissioners Denise Atwood was excused. Youth Commissioner Sarah Traylor was present. Also present were Town Manager Ken Buchanan and Recording Secretary Shaunna Williams. AGENDA ITEM#3—CALL TO THE PUBLIC No one appeared at the call to the public. AGENDA ITEM #4— CONSIDERATION OF APPROVING MEETING MINUTES OF DECEMBER 12, 2012 Commissioner Dooley MOVED to approve the December 12, 2012 meeting minutes and Commissioner Bordow SECONDED the motion, which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#5—TOWN MANAGER'S UPDATE a. Economic Development Plan Mr. Buchanan stated that staff presented the draft Economic Development Plan to the Council at a Work Study Session and that Council suggested strengthening the language by adding the following: (1) bolster retail strategy; (2) higher education development; (3) population leakage/fluctuation; and (4) organizational approach, e.g., working through SPAC with subcommittees, or a more informal approach following a summit, or formalize implementation by creating a commission. He noted that revised draft language will go back to Council in March. AGENDA ITEM#6— PRESENTATION REGARDING THE TOURISM WEBSITE AND BRANDING PROGRAM AND HOW THEY RELATE TO ECONOMIC DEVELOPMENT BY MARK MCDERMOTT AND FRANCESCA CAROZZA OF THE FOUNTAIN HILLS & FORT MCDOWELL VISITORS BUREAU Tabled. AGENDA ITEM#7— DISCUSSION REGARDING ATTRACTING EQUESTRIAN RELATED BUSINESS TO FOUNTAIN HILLS Tabled. Page 1 of 4 '•.,,,— AGENDA ITEM#8— DISCUSSION REGARDING THE PROPOSED ECONOMIC DEVELOPMENT PLAN AND A DRAFT PROPOSAL TO FOUNTAIN HILLS TOWN COUNCIL FROM THE STRATEGIC PLANNING ADVISORY COMMITTEE Commissioner Magazine recapped the history leading up to development of the Draft Proposal to Fountain Hills Town Council(copy attached)and reviewed details of the draft proposal to execute an adopted Economic Development Plan by utilizing a Steering Committee. He stated that Open Meeting Law would need to be taken into consideration. Vice Chair Koester Thomas suggested holding the proposed summit that is outlined in the draft Economic Development Plan(copy attached)in order to bring stakeholders together and allow them to decide what they want to do regarding the appropriate implementation entity and priorities. Chair DePorter suggested having an implementation group work through the Town Manager's office. Discussion ensued regarding accountability, implementation,and the need to have the Town Attorney review the implications of Open Meeting Law with respect to the utilization of a Steering Committee. Commissioner Bordow MOVED to proceed with the recommendations in the Draft Proposal to Fountain Hills Town Council and Commissioner Magazine SECONDED the motion. Following further discussion, Commissioner Bordow withdrew his motion and AMENDED the motion to include a recommendation in the proposal that SPAC having primary accountability for organizing the summit. Commissioner Magazine withdrew his SECOND to the original motion and SECONDED the amended motion. Commissioner Bordow restated the amended motion as follows: (1)that the proposal be reviewed by legal counsel to obtain an opinion about whether or not it meets the goal of operating outside Open Meeting Law; (2) that the proposal be subject to suggestions by the stakeholders at the meeting; and(3)creating the summit by SPAC be a top priority. The question was called and the MOTION FAILED on a 3-3 roll call vote. Commissioner Dunham MOVED that(1)SPAC work to get the plan adopted; (2)as part of the adoption, direction be given to the Town Manager to put together a working group or task force to organize and implement the summit, with the draft proposal being part of the summit agenda; (3)that legal options presented to the summit as far as Open Meeting Law. He stated that the summit needs to happen quickly after plan adoption. Commissioner Dooley SECONDED the motion. Mr. Buchanan reviewed the strategies listed in the implementation section of the Economic Development Plan and pointed out that Open Meeting Law applies any time Council appoints a committee. Pursuant to a roll call vote,the MOTION CARRIED 6-0. It was agreed that a memorandum to Council from SPAC outlining the approved recommendations will be drafted by Commissioner Dunham, with support from Commissioner Bordow. Commissioner Magazine excused himself from the teleconference. '1111; Page 2 of 4 AGENDA ITEM#9— DISCUSSION REGARDING UPDATES TO STRATEGIC PLAN TO BE CONSIDERED BY COUNCIL ON JANUARY 17,2013 Chair DePorter stated that Strategic Plan updates will be on the agenda at the Council meeting tomorrow night and that he will be there to recommend approval. Commissioner Dooley MOVED to accept the memorandum to the Council regarding implementation ideas(copy attached)and Chair DePorter SECONDED the motion, which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#10— DISCUSSION REGARDING RECOMMENDATIONS FOR SPECIFIC INITIATIVES FOR COUNCIL TO CONSIDER AS PART OF FY 13-14 BUDGET (PER STRATEGIC PLANNING PROCESS) Chair DePorter stated that Suggested Budget Priorities and Initiatives were submitted by Vice Chair Koester Thomas (copy attached). Discussion ensued and it was noted that the Strategic Planning process includes offering specific budget initiatives. Vice Chair Koester Thomas proposed adding"13 Adopt and implement the Pavement Management Plan"to the recommended initiatives. She also noted that the Cl recommended initiative should read"Council Rules of Procedure" instead of"Council meeting policy." Chair DePorter MOVED to approve all of the suggested initiatives and Commissioner Bordow SECONDED the motion, which CARRIED UNANIMOUSLY by those present. Vice Chair Koester Thomas volunteered to write a memorandum to Council stating SPAC's recommended budget initiatives. AGENDA ITEM#11 — DISCUSSION REGARDING THE NVG RESEARCH PROJECT ENTITLED "COMPETITIVE ADVANTAGES AND REGIONAL COLLABORATIVE OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN THE TOWN OF FOUNTAIN HILLS" Chair DePorter reported that there is no status and recommended that this item be pulled from the agenda until there is a status. There was no discussion. AGENDA ITEM#12— DISCUSSION REGARDING THE NVG RESEARCH PROJECT ENTITLED"A SURVEY AND PROFILE OF CURRENT BUSINESSES IN FOUNTAIN HILLS" Chair DePorter stated that Mr. Buchanan has recommended that we accept the final report(copy attached). He MOVED to accept the report and shelf it for Mr. Buchanan's resource library. Commissioner Dooley SECONDED the motion. Discussion followed regarding obstacles to obtaining a presentation by Dr. Brooks. AGENDA ITEM#13— SCHEDULE UPCOMING MEETINGS It was noted that SPAC meetings are scheduled on February 13, 2013 at 4:00 p.m. and March 13, 2013 at 4:00 p.m. An additional meeting was scheduled on April 10, 2013 at 4:00 p.m. Page 3 of 4 "Nardi AGENDA ITEM#13— ADJOURN Commissioner Bordow MOVED to adjourn at 5:40 p.m. and Vice Chair Koester Thomas SECONDED the S motion, which CARRIED UNANIMOUSLY by those present. Shaunna Williams,Recording Secretary Page 4 of 4 ci Proposal To Fountain Hills Town Council The overriding objective of any economic development plan is to diversify the economy so as to produce more high paying jobs which, in turn,will increase the sustainability of our retail operations, increase the age diversity of the town, and provide more tax revenue. This is obviously a huge undertaking and there are no guarantees of success. But Fountain Hills must take the first steps. As stated by Dr. Brooks of ASU, we must recognize the urgency of the situation and take immediate action. The number of possible tasks are too numerous to list, and if not approached properly creates the risk of having people throw up their hands and say it's "impossible". Many are contained in the excellent draft "Economic Development Plan"transmitted to SPAC and Council. With the assumption that the Council will adopt some form of the plan presented by Ken Buchanan, we believe that a critical component is an implementation plan that recognizes the lack of funding available for such an undertaking; i.e, the use of external consultants is unlikely. Therefore,we believe private citizens of Fountain Hills must step forward to effectively accomplish the tasks that must be completed to bring the Economic Development Plan to fruition. Whatever implementation method is decided upon should result in the ability to set clear objectives, priorities and responsibilities as well as to provide measurable status and io success criteria. Therefore,we propose for your consideration the following: 1) The acknowledgement that to be successful,the effort requires a public-private partnership. 2)That a steering committee be established under the aegis of the Strategic Planning Advisory Committee titled: Fountain Hills Committee For Economic Develop- ment 3) The Committee shall have a Chairman and between 8-10 members representing the Council, SPAC,the Chamber and others with specific expertise in the substantive areas to be addressed eg. healthcare/wellness, software etc. 4)The role of the steering committee shall be to: • Examine the recommendations contained in the adopted Economic Development Plan and determine priorities for action. Further,to establish timelines for action. • Create subcommittees (not necessarily from the steering committee)to be actively involved with specific objectives as set by the steering committee. Eg. y 1 outreach to other institutions and organizations in the metropolitan area, identification of businesses that are prime targets for expansion to Fountain Hills, etc. and whatever other subcommittees deemed appropriate by the steering committee. Members of the subcommittees will be chosen by the Steering Committee and shall be knowledgeable residents of Fountain Hills as well as other experts in the region who might be in a position to be of assistance. • Report, in person or in writing,to the SPAC on a monthly basis re progress to date and any other issues the Steering Committee wishes to address. • Report to the Council as necessary or as requested by Council. We strongly believe the Steering Committee and subcommittees, if established, Must have complete freedom to meet free from any restrictions under the Arizona Open Meeting Laws so as to facilitate open debate and discussion. Therefore, if Council concurs with this approach, Town legal staff should review the recommended Plan, and if potential violations of the Open Meeting Law are identified, SPAC and Council should consider alterations to the plan to avoid this pitfall. We trust the Council will accept these recommendations in the spirit in which it is intended. We are all in this together. SPAC stands ready to assist the Council in any way you deem appropriate. • Fountain Hills Economic Development Plan Economic Development Plan s � 5 s �d • gx; • • 'ZIwi 44, 01 (P „ar,,, off. 4 *1#thatisA4 Town of Fountain Hills Economic Development Plan November 2012 Draft L November 2012 Draft Page 3 of 19 L Fountain Hills Economic Development Plan L Table of Contents Growing Our Economy is Critical 5 Strategic Approach 7 Our Commitment to Success 8 Fountain Hills Economic Game Plan 9 Business Attraction 11 Goal: Attract new business growth to diversify the Fountain Hills economy. 11 Business Retention and Expansion 13 Goal: Retain and expand existing businesses. 13 Entrepreneurial Development 14 Goal: Establish Fountain Hills an entrepreneurial center. 14 Foundational Maintenance 14 Goal: Ensure that the tools, systems, and structures effectively support economic growth. 14 Locational Catalysts 15 Goal: Revitalize and maximize the economic opportunities of community assets 15 Strategic Implementation 17 Performance Metrics 19 C November 2012 Draft Page 4 of 19 Fountain Hills Economic Development Plan L Growing Our Economy is Critical Economic development builds upon local assets to maximize resources in a way that enhances economic opportunities while improving the community's quality of life in a sustainable way. Fountain Hills was originally master-planned by McCullough Properties over 40 years ago to be a diverse community of residential, commercial, and employment that supported a vibrant live, work, and play environment. Since 1989 when the Town incorporated, Fountain Hills has continued to evolve its vision, committed to ensuring a high quality of life for both residents and visitors. Like most communities throughout the U.S.,the Great Recession has had an impact on Fountain Hills. However, the downturn has also provided an important opportunity for the community to redirect efforts and identify strategies to position the community for long-term success. The Town of Fountain Hills economic development vision is to be economically sustainable and anchor our vitality in an active vibrant town core that serves the community culturally, socially, and economically. To attain this vision,the following criteria will be used to track economic success: • Multi-generational community that provides opportunities to live, work, learn, and play • Established regional destination • Strong economic identity and business friendly • Economic diversity • Known for its strong vision and sense of place Business growth is critical to creating community wealth and is an important component of any economic development strategy. However, ensuring the right mix of business development is also important to maintaining a vibrant economy in Fountain Hills that can withstand downturns in economic cycles. Attracting and retaining quality, well-paying jobs help to diversify the economic base and fosters a live/work atmosphere. Attracting and developing business activities that create wealth and revenues in Fountain Hills is required to achieve the community's vision of long-term economic sustainability. To achieve community wealth and generate revenues,there are two types of business activities that must be present in the local economy. These are "basic" and "non-basic" activities. Basic economy is defined as an activity that will bring new dollars into the community. Building a basic economy comes in Basic activities bring a wide range of activities from tourists staying in town at local new revenues into hotels to a manufactured product made or processed in a Hi Fountain Hills being sold and distributed outside its boundaries. Money coming into the community creates jobs and wealth. November 2012 Draft Page 5 of 19 a Fountain Hills Economic Development Plan However, a sustainable economy also requires activities that will keep those revenues in the �- local economy as long as possible. Therefore, it is critical to build a non-basic economy. These are activities that keep [on-basic activities dollars already in the local economy in Fountain Hills. The longer the dollar stays and circulates in the local economy, the more jobs and businesses it creates. The types of businesses that re-circulate that dollar include service type activities such as grocery stores, dry cleaners, and local retail. A vibrant, sustaining economy will not occur without a healthy blend of both basic and non- basic activities present. Ensuring a diverse mix of both types of businesses also helps to buffer against an economic downturn and fluctuations in business cycles, as well as recession-proof the local economy. This is critical because the Town of Fountain Hills depends on locally- generated sales tax revenues to provide community infrastructure, amenities, and services. Both basic and non-basic activities are critical to the future viability of Fountain Hills. One last important concept to address is leakage. This is -11.14 defined as dollars leaving the community or residents having or 110eakage is when choosing to purchase goods and services outside of the revenues leave Fountain community. Even in the most diversified local or regional Hills. economy some leakage occurs. However, the longer a community can retain those dollars created through local economic activity the more the L economy expands. Encouraging local spending generates revenues that can be used to improve streets, expand parks, and meet the public needs of residents. How Your Local Economy Works Your community Butcher hires " El Research a il • Professor hires . ' t� Funding, architect to T T�I •-" Tuition and , i31 teR design new I I store �i,�+,`], Fees l lI 11 IS home ' i litf Archit p'=s gar Non-Basic Grocer buys Basic Activity Activity ted by meatfrom ity dollars that are new to the mechanic tiutcher community Company dollars that circulate vehicles within the community Contract to design fir'� 11 III it newpro ducts and ;" .".. ', serviced by ••• ••: R /J N provide outsourced - mechanic services t=11111 _S _ Mechani s•ta es OutsideLeakage supplier dollars spent outside of your community Neighboring dentist Their orteamm community E 1 t l !" November 2012 Draft Source: Partners for Strategic Action,'Rage 6 of 19 Fountain Hills Economic Development Plan L Strategic Approach Building a diversified economy with both basic and non-basic activities requires a comprehensive strategy. Both types of economic strategies require different approaches. The purpose of the Fountain Hills Economic Development Plan is to present the community's approach to achieve long-term economic success. Fountain Hills is not an economic or employment hub. In fact, most employed residents commute out of the community to their employment destination. This reality translates into a daytime population which is significantly less than the night time population. Fountain Hills also experiences a significant shift in population from winter months and summer months. Building a strong local employment base comprised of base sector employers is critical to the development of a well-rounded, sustainable, and vibrant community. Base sector employers provide the expansion and diversification to a community's economic base. The jobs created by base sector employers, especially quality jobs, contribute to local prosperity. A strong employment base supports local businesses and commercial districts. There is a positive correlation between local employment and spending in the local economy by employees. People who work in a community tend to spend a portion of their money purchasing goods and services from local businesses. C. To illustrate this point, an analysis by the International Council of Shopping Centers shows that office workers patronize local establishments and, not only spend money dining out, they also spend money on convenience goods. The lunch and convenience item spending of these workers can be a substantial part of local retailers' revenue. Additional spending may occur by workers who choose to shop locally, to avoid rush hour traffic, for regularly needed items. A strong employment base increases the daytime population and contributes to the success of local service sector businesses. Many merchants, particularly those engaged in hospitality businesses such as restaurants depend on daytime traffic to make ends meet. The town has experienced reluctance on the part of potential chain restaurants to open in Fountain Hills due to the low daytime population. The attraction of quality base sector employers provides daytime population which increases the likelihood of additional service sector businesses locating in the community. Attraction of base sector businesses enhances the quality of life for citizens in four significant ways: 1. It provides opportunities for citizens to work locally versus commuting outside of the community for employment. 2. It attracts people from outside of the community who spend money locally but don't require town services. 3. It evens out the seasonal fluctuations in the population and spending which lessons the impact and strain on local businesses who struggle during the summer months. November 2012 Draft Page 7 of 19 Fountain Hills Economic Development Plan 4. It increases the viability of the Fountain Hills market to attract other desired goods and services. The Fountain Hills market is often perceived as being oversaturated with retail, although the Town lacks empirical evidence that such is the case. A recent trade area analysis commissioned by Town Council indicates that there is an abundance of certain services and retailers and a deficit of other. Compounding this problem, as suggested earlier, is the reality that the inventory of retail space aligns itself with accommodating a population much larger than the summer population of Fountain Hills, or even the winter population for that matter. Tourism and recreation plays a significant role in the Fountain Hills economy. According to a recent study by the national travel research firm Dean Runyan Associates,total visitor spending in the Fountain Hills and Fort McDowell destination area have increased as a result of the opening of two new lodging establishments in 2005—the Radisson Fort McDowell Resort and the Fountain Hills Holiday Inn. Gaming at Fort McDowell, area golf, and the large number of vacation home rentals attract visitors that tend to stay longer and spend more. The Fountain Hills Fort McDowell destination area consists of the town of Fountain Hills, the Fort McDowell Yavapai Nation, the McDowell Mountain Regional Park and the "The Verdes" communities (Rio Verde,Tonto Verde, and Vista Verde). The overall destination product mix is very strong in offering what traditional travelers to Arizona are seeking: scenic beauty; outdoor adventure; desert experience; golf, resorts and spas; Native American and Old West culture; performing arts and festivals; and of course, sunshine. In addition, the destination offers unique attractions such as the town's iconic Fountain, an excellent museum of area history, and even a nationally recognized disc golf course. Tourism and recreation brings new money into the community while non-basic activities keep those dollars in Fountain Hills. Another benefit of tourism and recreation is that these activities introduce new visitors to Fountain Hills with the prospect of relocating either their residency or business as a result of their experience. Building on all of Fountain Hills' assets and opportunities is critical to the successful expansion of the local economic base. Our Commitment to Success The Town of Fountain Hills is committed to building a sustainable community and high- Strategic Plan Values performing organization. In 2010, the Town Civility Council approved a community-wide Strategic Environmental Stewardship Plan. The strategic plan is integrated into the Civic Responsibility daily operations of the Town's organization. All OIEducation, Learning & Culture proposals and initiatives are evaluated in Recreational Opportunities & Amenities relationship to the Strategic Plan. Economic Vitality Maintain & Improve Community The Strategic Plan Vision for Fountain Hills is to nfrastructure be a distinctive community designed to h & ' November 2012 Draft Page 8 of 19 4 Fountain Hills Economic Development Plan invigorate the body, mind, and spirit and strive to: ... • Be stewards of this unique enclave, dedicated to preserving the environment and visual aesthetic and to living in balance with the Sonoran Desert; • Champion the diversity of experiences our residents bring to our community and rely on this depth of experience to innovatively address our challenges; • Be economically sustainable and anchor our vitality in an active vibrant town core that serves us culturally, socially and economically; and • Be civic-minded and friendly, taking responsibility for our Town's success by building partnerships and investing our talent and resources. The 2010 Strategic Plan identified the priority initiative for the Town was to maintain financial stability and local control, and promote economic growth to support the community's needs and promote successful businesses. Economic Vitality was one of the eight values identified in the Strategic Plan along with these eight directives: • EV1 - Develop a comprehensive economic development strategy for the Town's future and work with our partners to forward economic growth and awareness. • EV 2- Develop and maintain a balanced, equitable, sustainable and local financing structure to support the Town's core government services at desired service levels. • EV 3 - Promote a mixed use core where residents can live, work learn and play in an urban village setting as depicted in the Area Specific Plan (Downtown Vision Master Plan). • EV 4- Promote retention, expansion and relocation of quality businesses. • EV 5 - Promote Fountain Hills as a visitor destination. • EV 6- Identify a slate of economic development tools and strategies (including tax incentives, fee abatements, etc.) to stimulate economic growth. • EV 7 - Identify areas for redevelopment, revitalization or reuse. • EV 8- Promote unique and vibrant neighborhood and business districts. Fountain Hills Economic Game Plan Economic development requires a public/private partnership to comprehensively build a strong economic base in Fountain Hills. Everyone has a role to play. The Town, business groups, civic organizations, businesses, and residents all can contribute to ensuring that Fountain Hills' economy grows. Creating more base jobs locally attracts more year-round residents to live, work, and play in the community.These jobs expand the market for local businesses creating revenues that support the community's quality of life. As revenues are generated and the economic base expands, revenues are available for needed basic services such as parks, recreation, and roadway improvements. Our economic development game plan is a multi-tiered approach to building a strong economic base. L November 2012 Draft Page 9 of 19 } Fountain Hills Economic Development Plan Economic Objectives are the broad desired achievement that through the implementation of the Economic Development Plan Fountain Hills will accomplish. The economic objectives are: • Grow Our Economy • Maximize Our Talent • Enhance Our Community Our Focused Approach is how Fountain Hills is going to achieve its economic objectives. All five are important and would be addressed simultaneously. The focused approach is through the following strategic initiatives: • Business Attraction • Business Retention and Expansion • Entrepreneurial Development • Foundational Maintenance • Locational Catalysts Targeted Industry Sectors are the business sectors that offer Fountain Hills the most opportunity and will be pursued through our focused approach. The industry sectors help the community meet the stated economic objectives. • Professional, Technical, and Scientific Services • Healthcare, Medical, Biosciences, and Wellness • Finance and Insurance • Tourism and Recreation C November 2012 Draft Page 10 of 19 • Fountain Hills Economic Development Plan The graphic that follows illustrates the tiered approach to building a strong economic base. Targeted Vibrant Economic Focused Sustainable Objectives Approach Industry Community Sectors Grow Our Economy Business Attract'.P Professional, echnical&Scientific Business Retention Services Maximize Our Talent Expansion 'Heathcare,Medical, Entrepreneurial Biosciences& Enhance Our Development Wellness Community Foundational Finance&Insurance Maintenance Tourism&Recreation Locational Catalysts Following is a description of the goals and actions that will be taken to achieve the economic objectives. Business Attraction Goal: Attract new business growth to diversify the Fountain Hills economy. FOUNTAIN HILLS POSITION Based on existing community assets and regional opportunities, Fountain Hills will focus business recruitment efforts within the following targeted industry sectors as defined by the North American Industry Classification System (NAICS) of the U.S. Census Bureau: • Professional,Technical, and Scientific Services (NAICS 54) • Healthcare, Medical, Biosciences, and Wellness (NAICS 62) • Finance and Insurance (NAICS 52) • Arts, Entertainment, and Recreation (NAICS 71) These sectors offer higher wage professional positions that match our labor force and build upon existing regional clusters. GAME PLAN aw 1. Facilitate and/or recruit new base sector employment opportunities. November 2012 Draft Page 11 of 19 Fountain Hills Economic Development Plan Action Steps: • Develop an inventory of office space and implement office recruitment strategies for advanced business services and healthcare, medical, and bio-medical businesses which can occupy existing space. • Initiate a higher education feasibility study to determine and assess the existing educational resources and provide strategic direction for the attraction of higher education to Fountain Hills. • Initiate a healthcare and wellness feasibility study to assess the current healthcare environment, determine the additional healthcare services needs, and identify potential growth strategies. • Continue to build on relationships with economic development entities, like the Greater Phoenix Economic Council (GPEC) and Arizona Commerce Authority (ACA), to cultivate leads for new businesses that could potentially locate to Fountain Hills. Respond to these leads as appropriate and feasible. 2. Recruit local business owners, who operate their business outside of Fountain Hills,to make their offices in town. Action Step: • Identify targeted business owners and communicate the advantages of relocating businesses to Fountain Hills as a viable business expansion/relocation venue. 3. Target recruitment efforts on those businesses identified in the retail market analysis. Action Step: • Identify opportunities to connect directly with retailers to discuss Fountain Hills as a location for their retail operation. 4. Develop and execute a communication strategy aimed at the targeted industry sectors. Action Steps: • Provide current data on the economic dynamics of Fountain Hills and the region to prospects and site selectors electronically and through print materials. • Establish a strong economic development presence on the Town's website with content and messaging geared toward targeted business sectors. • Develop collateral materials and messaging about Fountain Hills' position related to the targeted business sectors. 5. Implement a comprehensive tourism and recreation development program. Action Steps: • Actively pursue the Vision Plan's core element of a first class performance venue in Fountain Park as the central attraction component for enhanced downtown vibrancy through non-resident visitation as well as increased resident patronage. • Collaborate with Fort McDowell Yavapai Nation to adequately fund and implement a destination marketing effort focused on niche tourism segments such as golf(Sonoran November 2012 Draft Page 12 of 19 + 1. Fountain Hills Economic Development Plan Desert Golf Trail), weddings, desert/Southwest Experience, Native American Heritage and Old West experience, and arts. • Promote the Community Center and other local venues as viable meeting and event centers. • Explore the feasibility and initiate strategies to expand hospitality facilities in Fountain Hills. • Develop more multi-day major events to Fountain Hills while ensuring long-term viability of existing events. • Implement a program to attract more group tours to Fountain Hills. Business Retention and Expansion Goal: Retain and expand existing businesses. FOUNTAIN HILLS POSITION The bulk of new jobs created in this country are created by existing companies. Therefore, an effective business retention and expansion (BRE) program is an important component of any community business plan. Engaging in ongoing dialogues with existing businesses can inform labor force development programs as well as potential business recruitment targets.The retention of existing business is a key measure of the strength of the local economy and the 1416.- relative success of the business within the community. With a seasonal population, Fountain Hills struggles to maintain home-grown restaurants and retail establishments. A formal BRE program in Fountain Hills would help to identify those companies at risk of failing or leaving the community and providing preemptive measures to ensure their success. Adopting traditional goals of a business retention program, Fountain Hills BRE program will address the followings: • Identify companies with plans to expand • Identify companies at risk of leaving/downsizing • Identify company and community problems • Provide assistance • Build relationships GAME PLAN 6. Implement a business visitation program for base sector industries,targeting those businesses which align with NAICS 52, 54, 62, and 71. Action Steps: • Utilize an electronic tool/system specific for business retention, like the Synchronist Business Information Systems, for use in the business retention outreach. • Regularly interview, evaluate the results of the interviews, and identify policies or incentives that would be helpful to retaining existing businesses. 1 Blaine Canada, Ltd,Synchronist November 2012 Draft Page 13 of 19 Fountain Hills Economic Development Plan • Annually conduct an economic summit to understand business needs and changes within the economy. Entrepreneurial Development Goal: Establish Fountain Hills an entrepreneurial center. FOUNTAIN HILLS POSITION Arizona has been ranked very high nationally in entrepreneurial activity and new business starts. According to the Arizona Commerce Authority, the attraction is that Arizona's business and property taxes are low, as well as workers' compensation costs. It is critical for long-term success to ensure that new business start-ups and entrepreneurs have a solid foundation. Some of the basic mistakes that lead to entrepreneurial failure include: • Poor business planning • Inadequate funding • Choosing the wrong business structure Creating the environment within Fountain Hills that fosters the entrepreneurial spirit and assists new business start-ups is an important component of the economic program. In 2010, the Fountain Hills Business Incubator was established as a public/private partnership to enhance the entrepreneurial success rates. GAME PLAN 7. Create a support structure and assistance for entrepreneurial growth. Action Steps: • Utilize the Business Incubator to grow new businesses and assist others that may be struggling. • Annually evaluate the Business Incubator effectiveness to ensure it is achieving its mission and providing adequate return on investment. • Partner with existing groups and organizations to assist with business start-ups, mentoring, and other resource identification and deployment. Foundational Maintenance Goal: Ensure that the tools, systems, and structures effectively support economic growth. FOUNTAIN HILLS POSITION Lir Community foundations are those resources such as infrastructure, regulations and policies, education and training, and capital that are the building blocks for a strong economy. Successful November 2012 Draft Page 14 of 19 � U Fountain Hills Economic Development Plan community and economic development programs are dependent upon this solid framework for growth and sustainability. GAME PLAN 8. Identify and promote viable incentives for businesses locating to Fountain Hills that relieve fiscal burdens and/or make the businesses more competitive. Action Steps: • Perform a comprehensive survey of incentive tools and strategies currently being successfully employed by communities throughout the metro area. • Compose business assistance and incentive package/proposal for Council's consideration and possible adoption. • Develop and execute a strategy to communicate the availability of incentives as adopted by the Council to targeted businesses. 9. Ensure a business-friendly environment within Fountain Hills. Action Steps: • Identify, inventory, and review Town regulations that are onerous for economic development efforts. • Develop a plan to make regulatory modifications that would facilitate economic development activities that align with creating a more vibrant business environment while not compromising community values. 10. Maintain Fountain Hills' physical infrastructure to support economic development. Action Step: • Adequately fund and maintain capital improvement projects that maintain the Town's investment and improve the community's quality of life. 11. Ensure Town services meet community needs and achieve a more sustainable revenue balance. Action Step: • Collaboratively pursue funding strategies that meet the current and future needs of the Town of Fountain Hills. Locational Catalysts Goal: Revitalize and maximize the economic opportunities of community assets. FOUNTAIN HILLS POSITION L Fountain Hills has tremendous geographic and locational assets that can serve as a catalyst for economic growth. These business development areas include the Civic Center, Avenue of the November 2012 Draft Page 15 of 19 Fountain Hills Economic Development Plan Fountain Hills, Fountain Park Area, Shea Corridor, and Saguaro Boulevard. Each asset has development that has occurred, is occurring, or is in need of revitalization. Continual evaluation and action planning is needed to ensure that these assets are not under-utilized and are developed in such a way to enhance the long-term sustainability of the community. In 2009, the Town of Fountain Hills adopted the Downtown Area Specific Plan that identified nine districts that offered revitalization and development opportunities. These districts included: • Business District: Center of downtown commerce that promotes entrepreneurship through a variety of commerce related opportunities and business related uses. • The Avenue District: Core of the downtown with a comfortable atmosphere for strolling, sight-seeing and shopping. This district will evolve into a premier shopping destination for residents and a must-visit magnet for visitors. • South End District: Envisioned as a mixed-use downtown residential neighborhood that is complemented with small neighbor-hood-oriented commercial, second story offices, and specialty shops. This district will contain a "village square" that will provide the downtown with a prominent park. • Residential District: Currently developed as condominiums and is a vital component in providing an infusion of people into the downtown area and enhancing the vitality and quality of the downtown experience. • West Side District: A true mixed-use district where residential infill as well as retail, Loffices, and services will be encouraged. This is also a possible location for a future large entertainment anchor. • Civic District: Current home of the Town Hall, Community Center, Library, and Museum. This district will be enhanced with future additional artwork and possibly infill development such as a community pool or similar uses that will enhance the quality of life for the town residents and visitors. • Service District: Existing commercial area and the current location of Fountain Hills Plaza (aka Bashas' plaza). Community oriented businesses in this area will be maintained as an important component of the downtown and the community as a whole. • Lakeside District: Provides a dynamic transformation of a portion of the existing Fountain Park. This district will become a unique, amenity-oriented open space environment with a prominent performance venue and the possibility of some specialty retail shops, café's, and other appropriately sized businesses. • Park District: The majority of Fountain Park will remain as it is. Potential improvements include more trees, decorative park lighting, seating areas, signage, and park furnishings. The park will remain as a primarily passive recreational area. Each district is intended to have its own unique character and yet each district will also blend harmoniously with the other downtown districts to create the "Downtown Vision."The Downtown Vision gives the Fountain Hills downtown area its unique character and appeal while providing for an invigorated business climate as well as an increased quality of life for the town residents and visitors. November 2012 Draft Page 16 of 19 a Fountain Hills Economic Development Plan Though much emphasis has been placed on the Downtown Specific Plan area, the Shea Boulevard Corridor and Saguaro Boulevard offer economic development opportunities that should not be overlooked. GAME PLAN 12. Develop and prioritize an implementation strategy for the Downtown Specific Plan. Action Steps: • Identify and mitigate land use restrictions and zoning within the Districts which are hampering development as envisioned and identified in the Area Specific Plan. • Identify and assess potential conflicts between vehicular and pedestrian traffic in downtown. • Evaluate parking quantity and quality. • Ensure public and private infrastructure is properly maintained. • Maintain downtown aesthetics. • Encourage infill development, development of large vacant parcels, and redevelopment within the Districts in alignment with the Area Specific Plan. • Support a diversified retail and restaurant mix in the Avenue District between Saguaro Drive and Verde River Drive. • Develop a plan to clearly identify pedestrian walkways and interconnectivity within Districts and between Districts that minimize conflict between pedestrian traffic and vehicular traffic. 13. Foster the revitalization and enhancement of existing areas. Action Step: • Establish a vision and guidelines for future revitalization and enhancement of commercial corridors such as Shea Boulevard and Saguaro Boulevard as well as existing neighborhoods. Strategic Implementation Economic development in Fountain Hills requires a collaborative effort to ensure success. The Town of Fountain Hills plays a key role along with the business community and residents. The Town works collaboratively with the various stakeholder groups and other agencies in its effort to diversify the local economy. The Economic Development Plan is based on expanding the local economy and improving the standard of living within the Fountain Hills area. Following is a list of success objectives that will assist in implementation. Many of these objectives are similar to The Ahwahnee Principles for Smart Economic Development created by the Center for Livable Communities in Sacramento, California. L November 2012 Draft Page 17 of 19 s. Fountain Hills Economic Development Plan Coordinated Approach: All entities involved in economic development must work together to ``- achieve mutually agreed-upon goals to ensure a sustainable effort. Community Collaboration: A comprehensive understanding of the town and region and a commitment to collaborating with entities throughout the region (e.g., federal agencies, incorporated communities) are critical. Smart Growth: The regional environment is a tremendous asset that should be protected for community and economic development reasons. The community must take great strides in addressing resource issues, such as water, to ensure long-term sustainability. Long-Term Efforts: Economic development is not a one-shot activity. Success requires long- term investments (e.g., infrastructure and telecommunications) as well as continued focused effort and evaluation. Existing Business Support: The town's focus is on supporting existing enterprises, while looking at diversifying the economic base is important. Existing businesses are Fountain Hills' most valuable assets because they are already contributing to the local economy and quality of life. They are also the best source of business expansion and local job growth. Corporate Responsibility: Fountain Hills encourages enterprises to work as civic partners, contributing to the community, protecting the natural environment, and providing workers with good pay, benefits, and opportunities for upward mobility, within a healthy working environment. Human Investment: Human resources are so valuable in the Information Age and Fountain Hills will strive to provide life-long skills and learning opportunities by investing in excellent schools, post-secondary institutions, and opportunities for continuous education and training that are available to all. The strategic implementation program should be initiated with an Economic Development Summit. The Summit would bring together community leaders, stakeholders, and experts in economic development, downtown development, and tourism fields to discuss the initiatives and direction the community should be take to implement the Economic Development Plan. Annually, the Economic Development Summit would be held to review, revise, and redirect the economic development effort. Potential partners for the summit might include (but would not be limited to): • Town of Fountain Hills • Fountain Hills Chamber of Commerce/Visitors Bureau • Greater Fountain Hills Business Alliance • Fort McDowell Yavapai Nation • Greater Phoenix Economic Corporation November 2012 Draft Page 18 of 19 Fountain Hills Economic Development Plan • Arizona Commerce Authority • Utility providers • Education providers • Support providers (commercial realty, etc.) Performance Metrics Performance metrics are applied to measure the Plan's activities and its overall performance. As there is always an element of uncertainty about the future, regular review to ensure that a plan is still effective and achieving desired outcomes is critical. Performance metrics should support the intended strategic outcome and typical meet six criteria:time, cost, resources, scope, quality, and actions. Performance metrics will be established with each strategic initiative to provide annual assessment of progress. L C November 2012 Draft Page 19 of 19 `o�SAlvy��`� Memo ; To: Town Council CC: Ken Buchanan From: Strategic Planning Advisory Commission Date: January 8, 2013 Re: Strategic Plan Update / Implementation Ideas Per a request made at the joint meeting on November 7, 2012, the Strategic Planning Advisory Commission (SPAC) met in December to identify example implementation ideas for the three Strategic Directions proposed to update the Strategic Plan. SPAC recommends adding the following three strategic directions as part of its annual review of the Strategic Plan. To provide additional context, SPAC identified example implementation ideas for each of these proposed strategic directions. 1. Strategic Value—Civic Responsibility Strategic Direction CR 8: Foster a dialogue with residents and businesses regarding the importance of investing in the community's infrastructure maintenance to protect property values and enhance the business climate. • Conduct outreach to large groups and organizations (churches, clubs, PTO, realtors, etc.) • Host public meetings, community forums, etc. (i.e. divide the Town into five or six 'districts' and host forums to impart specific information) • Create and distribute an annual "State of the Town" media piece that summarizes the financial state of the Town and the importance of community infrastructure to property values (quantifying the impact of decaying infrastructure on property values) • Create public service announcements, including PSAs through Mayor's Youth Council • Provide general information on the relationship between property value and community investment tying it to understanding individual's property tax assessment(i.e. even though property owners receive a tax bill, many believe there is a primary property tax in Fountain Hills) • Utilize existing budget process to relay information and genuinely solicit feedback from residents • Develop a standard educational module of information (i.e. PowerPoint slides, talking points, handouts, etc.)to be distributed at at community events and other opportunities 2. Strategic Value— Economic Vitality Strategic Direction EV 9: Promote the maintenance of an age-balanced population that will support the long-term sustainability of our community. • Partner with the school district to improve and promote schools • Support economic development initiatives that generate high paying jobs to encourage young professionals with families to move to Fountain Hills • Develop a turnkey business relocation and expansion program targeting key business opportunities • Identify resources (i.e volunteers, staff and/or consultant services)to quantify, develop and market technical infrastructure to attract young professionals/families, (e.g., provide free wi-fi and fee-based, secure wi-fi in downtown/Fountain Park) • Expand sidewalk and pathway network in Town Center • Create marketing materials in collaboration with school district, chamber, non-profits, realtors and Town to encourage Fountain Hills residency 3. Strategic Value— Economic Vitality Strategic Direction EV10: Define Fountain Hills' market niche and actively pursue opportunities that attract and retain high quality employment opportunities. • Adopt and implement Economic Development Plan • Initiate an industry cluster analysis that looks at regional opportunities and develops a long-term strategy for bolstering those industries in Fountain Hills • Host an annual economic summit of the Town's neighbors and partners to focus regional and local economic growth strategies • Maintain an online catalogue of available rental space and market opportunities • Work with partners on a branding campaign to establish Fountain Hills as"not just a pretty place" • Establish an online database of commercial space that is available in Fountain Hills • Request that the Chamber collect and analyze member data, including information on business retention • Implement Downtown Vision Plan • Develop a set of business plan templates as part of the Town's incubator venture as an incentive for potential business owners to locate to Fountain Hills Suggested Budget Priorities and Initiatives: • 12: Evaluate and identify potential funding sources • 13:Create an executive summary of the current conditions assessment and publicize/distribute/communicate to constituents • 19: Evaluate and identify potential funding options • C1: Review and update, if necessary,Council meeting policy • C3: Develop a town stakeholder involvement plan/strategy • EV3: Identify next implementation stages of Downtown Vision Master Plan • EV1: Implement Economic Development Plan L • New Ventu re group Tempe,Arizona A Survey and Profile Of Current Businesses in Fountain Hills Final report submitted to: Ken Buchanan, Town Manager of Fountain Hills By: New Venture Group nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany 2 Contents NI) Executive Summary 3 Surveying Process 4 Types of Businesses Surveyed 5 Primary Benefits of being in Fountain Hills 7 Special Challenges Summary 8 Factors affecting Business Revenue Summary 9 How the Town has Helped Businesses 10 Conclusion 12 Appendices 14 Exhibit A—Maps of Surveyed Businesses 14 Exhibit B -Excel Dashboard 17 Exhibit C -Business Survey 18 nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ • Executive Summary In an effort to assess Fountain Hills' business portfolio,New Venture Group was tasked to plan, complete and assess a business inventory of the town. The first step was to identify as many businesses by their location as possible and create a survey that would capture basics facts as well as in depth knowledge about their business performance and contentment in regards to the town's efforts to stimulate economic growth. The finalized survey was used to interview 120 businesses of which 77 responded in full,while the remaining businesses were either approached and denied to be interviewed or unavailable to fill out the survey. A response rate of almost 65%indicates that most business owners have a vested interest in their town's success and future growth as well as a desire to be involved in local business issues. Fountain Hills is made up of 60%local businesses with 70%of all employees residing in the town,which creates a small community business environment. This type of setting is appreciated by many businesses and was often the reason they chose to start in Fountain Hills. The small size and beautiful environment are the top two benefits of being in Fountain Hills that business owners identified. However,many businesses struggle with the seasonality of revenues that is created by the large amount of snowbirds,who only live in the town during the winter months. Some businesses struggle during the summer months, while others have learned to adjust to the cyclical flow of customers.Although many businesses appreciate the town's small and quiet community,this also presents a problem because they receive little business during the evening hours. Most business owners did not think that the town has done enough to help their business become more success and grow. Some appreciated the town's efforts to boost the start-up community and host events such as the annual fairs. Unfortunately,the fairs affect businesses that are not in walking distance negatively due to traffic regulations. Overall,the business community would like to be more involved in the town's business-related decisions and specifically ask for less signage restrictions. The appendices are an extension of the group's data analysis and provide further ways of visualizing the data. L nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 4 Surveying Process New Venture Group conducted a business inventory survey to assist the town of Fountain Hills in the first phase of economic development: identifying and profiling,to the extent possible,the town's current economic assets in the form of existing businesses.NVG first developed a survey with demographic and open ended questions that would serve as a method to gain an overall understanding of the current companies and what their opinions are about the current status of the town they reside in(The survey is attached in its entirety as Exhibit C). The purpose of the survey was to identify businesses by their name,type of business, approximate size, location,number of employees,length of time in Fountain Hills, and the views of the business regarding their operations in Fountain Hills,both strengths and weaknesses. Using the adopted budget for fiscal year 2012—2013 released by Fountain Hills,NVG was able to identify 20 distinct shopping centers throughout the town. The team identified 200 businesses through the use of Google Maps. These businesses were split evenly among 35 students and the consulting team who went to Fountain Hills on various weekdays throughout a three week period to personally survey businesses. They were advised to speak with an owner or manager or someone of equal knowledge. After completing the surveys, students submitted their results into an excel spreadsheet which would be used to complete analysis and evaluation of the findings. Students also submitted photos or a business card of the location that they surveyed for quality control purposes. The survey results identified a profile of businesses and commercial operations that fall into the various corridors as well as the following economic categories: • NAICS Code 52 (Finance and Insurance) • NAICS Code 54 (Professional, Scientific,and Technical Services) • NAICS Code 62 (Health Care and Social Assistance) nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 5 Types of Businesses Surveyed All interviewed businesses were categorized into the six major classifications: Education, Entertainment, Finance and Insurance(NAICS 52), Professional Services(NAICS 54), Restaurant,Retail, and Health(NAICS 62). By dividing the over 100 interviewed businesses in such a manner,the team was able to further analyze the broader impact of the study and compare them to one another. Identifying common trends across industries within Fountain Hills might help to define specified action plans in the future. The interview teams were able to speak to the company owner or manager in over 75%of the time,which makes each answer valuable as well as credible. Two thirds of the interviewees were residents of Fountain Hills,whereas the remaining one third were non-residents. Companies were also asked to define themselves as a local,national or international business (referring to where they sell goods). Over 60%identified themselves as being a local business while 13%and 7%classified themselves as national or international,respectively. This indicates that many of Fountain Hills' businesses rely heavily on local traffics from residents or non- residents to support them. Fountain Hills' business parks and shopping plazas are made up of mostly local businesses with less than 24 employees. The survey indicated that 65%have less than 10 employees and 31% have less than 24 employees. On average, 70%of a company's employees are Fountain Hills residents,while the remainder commutes from neighboring communities. Businesses were also surveyed on the number of years they have been in business and how many of those years were spent in Fountain Hills. The data indicates that 98%of local businesses were in fact founded in Fountain Hills. L nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 6 What Drew Businesses to Fountain Hills In order to gauge Fountain Hills' best business features,businesses were asked to state why they decided to open doors in the town. The survey produced multiple reasons for starting business in Fountain Hills, detailed in the graph below. The top reason, that 29%of businesses surveyed stated,was location. Business owners found Fountain Hills beautiful, calm, and friendly; one business answered, "It's quieter here. The pace of life is slower,and it's not so busy."The next most frequent answer was demographics. The wealth and the older population of the town drew 18%of the businesses surveyed. According to the survey,there are a"large amount of mansions/ high-end homes [in addition to an] (o)lder,upper-class population".Next, 17%of businesses started in Fountain Hills because the owners already lived in the town,whereas 15%of the businesses surveyed opened in the town because the opportunity arose. They saw an opening in the market, bought a business that was for sale,or wanted to bring a new culture to Fountain Hills.After opportunity, personal reasons make up 12%of the owners answers for starting business. Most personal reasons pertained to family or friends. Finally, 8%of businesses opened due to perceived demand. The owners sensed Fountain Hills was lacking in an area and decided to fill the void. For example,one business owner said, "a group of people thought they needed a theater", while another stated,"lots of residents and no hotel". While there are several different reasons to start a business in Fountain Hills,many of the owners feel that Fountain Hills is a beautiful and quiet place to work. What Drew Businesses to Fountain Hills 35% 30% 25% 20% 15% 10% 5% 0% _—r.__...- ----, Demand Demographics Location Opportunity Personal Resident nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 7 Primary Benefits of Being in Fountain Hills In order to assess the advantages of businesses being in Fountain Hills, the survey asked what the primary benefit was to be in Fountain Hills. The most common answer was regarding the size and serenity of the town. The small town environment allows businesses to not have as much competition compared to neighboring cities such as Phoenix or Scottsdale. One business described it as being a"big fish in a small pond."Other owners praised the environment for the town's cleanliness and beauty. Many believed this brought in more non-resident customers while also making it a great place to live and work. Although not as significant,demographic,location, and socioeconomic factors also contributed for a big part of the answers. Many owners claimed that return customers are significant for their business. The older age of the population also helped a lot of the businesses that were surveyed. Overall,many employers viewed the town to be wealthier compared to neighboring towns,which helps them maintain their business as more of an upscale and classy profession. Some highlights from the survey results include: • "The city is less crowded,the people are wonderful,we love the views, and property value is high for the homes." • "The primary benefits are the large influx of visitors during the winter and the amount of Co. money people in the area spend." • "It's a small town, so it's like being a big fish in a small pond." • "The city provides a nice small town atmosphere and is a good place to raise a family." Primary Benefits of Being in Fountain Hills 40% 35% -- • 30% 25% — - - 20% _ ,...__ _ i 15% 10% — — 5% — __ 1111 Size/Quiet Demographics location Socioeconomic Environment Non-Resident nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 8 Special Challenges Summary .1) Business were asked about special challenges that they faced doing business in Fountain Hills. The seasonality of Fountain Hills with the"snowbirds"was the biggest challenged noted by businesses.They thrive doing the busy winter months but then struggle getting a large customer base in the summer. The second most popular answer was the quietness and"small town"feeling that Fountain Hills has detracts from business development. Location also contributed to a large proportion of the answers citing that the area is land locked and far away from major cities. Lastly was town competition which includes competition from other cities such as Scottsdale and government&policies which cite government regulations that create challenges to a business. Some highlights from the survey results include: • "There is a small base population from which to draw from,and there is significant competition in the area." • "Limited clientele because of isolated community, snowbirds." • "We have a low amount of customers in the summer, literally no customers during hot summer days." • "The concentration of business in the fourth quarter. It's causing the store to move to a smaller location nearby." • "The rules regarding signage and business leaving the area." Special Challenges for Businesses 30% 25% 20% . -- 15% -- — — 10% 5% 0% -_— Alt co go pie e, o, C� nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 9 Factors affecting Business Revenue Summary In order to better understand the economic climate in Fountain Hills,NVG investigated what factors contribute to the success and business sustainability of local businesses. The majority of complaints address the issue of seasonal business cycles which are mostly to be attributed to the vast amount of snowbirds. This type of response was seen in almost one third of the answered surveys. As shown in the previous section,the topic of snowbirds and the disruption they cause seems to be one of the primary concerns of business owners in Fountain Hills. Especially businesses in the health&wellness sector, as well as in the professional services industry are troubled by this fact. Over 25%of the responses indicate that the general economy has the greatest effect on their business' well-being,which indicates that Fountain Hills is as affected by the market as any other town. The third major category being `demographics' includes responses such as"Getting to know people and attending events is most important"and"Younger families are moving to Mesa". There are several interesting quotes that highlight the business climate: • "Snowbirds, easy to drive to Scottsdale rather than keep business in Fountain Hills." • "The craft fairs that are held in the area,the economy, and fluxes in population due to winter visitors." • "Inadequate signage and craft fairs in the vicinity." Major Effects on Business Revenue 40% 35% — 30% — — — 25% --- 20% 15% - 10% - 5% 2% 0% ® r — `oF e,�Ol L ( l O CO 0 5 nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale,AZ 10 How the Town has Helped Businesses The business inventory survey allowed New Venture Group to receive extensive feedback from Fountain Hills' businesses regarding their relationships with the town. The chart below summarizes the town's actions that the businesses have valued most. Many businesses are pleased with the development of the Chamber of Commerce, as it demonstrates the town's interest in working collaboratively with businesses. One business owner expressed special appreciation for the list of Fountain Hills' businesses that the Chamber posted on its website, stating that it helped all businesses in Fountain Hills. Many businesses also cited the events that the town plans as an appreciated contribution to their businesses' success. Another recurring theme among the businesses' feedback was the gratitude for the advertisement that the town has been distributing. Some highlights from the surveys regarding what the town has done to help business include: • "Nothing. We have been Chamber of commerce members for 15 years. They haven't done anything to help." • "There are great events,the art fair, and a great high school." • "The city's trying to bring in more start-up businesses, so that's been helping." What Has the Town Done? 70% 60% 50% 40% 30% 20% , 1111 - 10% 0% Nothing City Services Chamber of City Investments Other(Safety, Commerce Start-ups, Programming) nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 11 L What the Town Can Do in the Future NVG also requested suggestions from businesses regarding how the town can further help them in the future, as summarized in the chart below. While there were several businesses that were satisfied with the town's efforts and felt that their voices were adequately heard,there were many that do not feel support from the town and that believe the town is not"pro-business."From this, we can conclude that the town could benefit from reaching out to more businesses and ensuring that every business has an opportunity to contribute. Among the most popular feedback was a request for decreased regulation on advertising and signage as well as more efficient responses to business requests such as permit applications. We also learned that,while several businesses appreciate the events that the town puts on and believe that they help their business,there are also many businesses who find that the events significantly detract from their business. They do so because the way the traffic is directed makes it difficult for customers to access their store. Many have found that their regular customers avoid them on event days because they are overwhelmed by the traffic difficulties. L What Can the Town Do? 40% 30% 25% , — 20% 15% 10% - 5% 1 - 0`Yo + Less City City-Business More Nothing Other Restrictions Investments Involvement Entertainment (Chamber of Commerce, Business Recruitment) Many businesses felt that the town should focus on activities that attract more young people, more families, and more full-time residents. Suggestions for ways to do so included further developing downtown,especially with the addition of a movie theater,as well as promoting nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale,AZ 12 more nightlife. One business owner stated that the town could benefit from developing a relationship with Fort McDowell,making information about Fountain Hills available to their customers in order to attract more visitors. To bring in more families, many businesses suggested renovating the look of the town to make it more attractive to potential residents.A key part of that would be to improve the road conditions.Many business owners mentioned the high taxes that they pay and stated that they would not be concerned with those taxes if they knew where they were going, especially if they were going towards updating Fountain Hills. Lastly, when discussing attracting more families, a couple businesses mentioned the need for an improved public school system. Some highlighted recommendations from surveyed business owners include: • "The city has some restrictive signage ordinances that make it difficult to promote business." • "Show where the city's funds are going. Make it a visitor town. Make Fountain Hills info available at casinos/hotels nearby." Conclusion The most frequent reasons why people decided to start their business in Fountain Hills '" were due to the location and demographics. Business owners tend to find the town beautiful and calm in addition to having an older and wealthier population. However,there are a variety of challenges that hinder the success of businesses in Fountain Hills. Snowbirds and the size/quietness of the city were cited as the two largest factors that influence their business. Other things that influence business success included the location of the town, government policies, and city demographics. It was concluded that the town is pretty evenly split in their opinion regarding the size/quietness of the town. Contrary to many claiming it a challenge,many other businesses actually enjoyed the quiet environment and small size of Fountain Hills and considered them as primary benefits of being in Fountain Hills. The relaxed setting allows the companies to operate with less competition while allowing many owners to raise a family in the town. The cleanliness and beauty of the town also allows many businesses to strive as such environment brings in more non-residents to the community. Other significant factors that benefited the local companies were socioeconomic,demographic, and location aspects. In terms of how influential the town government has been with the businesses, many owners were not aware of the town's efforts to help businesses succeed. Those that are aware nVg Phoenix,AZ Seoul, South Korea Heidelberg, Germany Glendale,AZ 13 appreciate the increased presence of the Chamber of Commerce,the events that bring visitors to the town, and the financial support that the town has provided. To summarize, Fountain Hills business owners would like to see the town collaborate more with business owners, decrease regulation on advertising and signage, further develop downtown, update the look of Fountain Hills, and improve the public schools. They would like the town to make it a priority to attract more young people, families, and full-time residents. Based on the data that was gathered from the business owners, we suggest taking further actions to benefit the town and its businesses. First, benchmarking with other towns in similar economic/environmental situations will be significant. For a town trying to conserve its natural beauty while working to boost its local economy, observing other towns' regulations and policies will be beneficial. In order to evaluate where there can be further expansion within the town, it will also be crucial to gather empty lot data.This will allow the town council to get a better picture of what part of the town needs more urgent development plans. Ultimately, to implement these plans into action, we suggest creating a focus group for value model. By using a focus group,the town will be able to figure out what the citizens of the town actually want. L L nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 14 Appendices Exhibit A -Maps of Surveyed Businesses Map is available online at:NVG—Fountain Hills Map .c, ._r y ,?' r ,.: � c �. ei Golden Eagle ,'^ Estates :'c' lir �.4 F. 8ea� a wad 4, c e'''' Sunridge i i ci a ft Canyon ,,jIT1 ��E;;;,ache e,vd in E'r ,Jt, II "Ciamante - 9a� Fountain 2: I 1 , Del Lago '- Hills ° 1� Professional Services ,�... I ain 4 Retail iiiis II',-a,' @ Finance & Insurance �df' Health Care & Social Assistance libz Westridge t Other Services Village Sne►6!Ya vg Restaurant Eagle *' �a+` Moi rtain �t . ,�.�'- , . if , . 0_,,) F:rerock \\,. () Figure 1-General Overview of Surveyed Area view nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 15 �Yt,- 0111:H. ;a e cf lir sc,..i.orl _ c 6. $ oQ c �, tir tr. F�0 asavirh �Er�oA Custom Wu'ety ^terp"s,pr aIte, 90,. Teal Or K`.t Grp 8 Fin-,,'I.'.GA �4 E HaJ+ 4.<1 l�' r�n>e 44i OP d'' .a O•Z Sr. on `E Saxon Cr N( -ahga Dr �/S i5y tid e-Po of IIIP .r 6$ eJvQ. Q a Partin Dr ac z,motta Dr 2 Professional Services sa/voo,. 2 01 d`- tv Retail o a NiThea:er r,Ndt u) Finance & Insurance 4 ��3 i C4_, Fourtain Hills 'w,r. �oY 4 Ve'. innr/ + Health Care & Social Assistance or Nner,al Other Services Figure 2-Saguaro Corridor wRestaurant Figure 3-Downtown Corridor , Ilk 2 z z + ir 4 "41k ru 1 Satelli O D rmiry LAthef60 Co Chute,' O a 4 e t Traffic o-a� E.`14z�' cm z —. ak' m .ff D tOt Fps a r n m111" `� o ,as raS.Y '. t.W7 F" O E r �c,e- - fdrtn,tk4 _ Ea 44 o Pn 1.%Hur Fp ` E La Montana Or 'r' dti s rrr:.3r. one :r r1r.rn,;ty-, lirek �'�1 iiianm:el n at tirw". Rsr lL toll11. . , , Ake+rh,c.ti.„Or !u 'U ' ITT i tor G. ,c.� itir Di ABC �1,'4-' lir Fr(3�0 2 Apr Z or1111141' ye 0 6q�C. 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Retail Figure 4-Shea Blvd Corridor Finance & Insurance c....;) # Health Care & Social Assistance ....0, ,.,., Other Services NRestaurant tl CO 4, 0 Maxwei4 to mains United A PriMeheni „ l ,..-‘ : ,odifit Church" f Acridelny 0 Vil ...0 0Ivor ,.... 07 C U. ck Bivd Fi•ae.d i •,••P -•• E Gerb , rock aiva i .1.:` Fourtain Hill. a c ha,tFt t Srho. ,:` ---•••• ,A.fillnwer -Z- Preschool Z. :CZ 0 M Z. + 0 r ,x9NP = -,.. o 77) Z tenbli'Nine 06, &I.fitic>1F. 4 •,p 6 Ei Pueblo Btvd "mot Tri`2.ce Phruzniv A/ nill Sniith Krwria Hoiriolhorn T4ormanv (4fonrialp A/ Figure 5-Fountain Hills Blvd Corridor 17 Exhibit B - Excel Dashboard New Venture Group Survey of Fountain Hills'Businesses Type of Business Surveyed EducationCompany Category V11Rty-_ s% Entertainment 2% / 1% Retail 15% 411) %of FH Resident Employees Length of Time in Fountain Hills 1 � >12 years 7699% a-12yean 51.7S% 1 a-Ryrars 111111111111111111111 26-50% 1.25% I 1-3 years 0 Bon <1 year MI 0 5 10 15 20 25 0 5 10 15 20 25 30 35 Revenue Factors Whet oreW Businesses to FH I tieNIG II I . 1r111111 �. a.D.war.OM[f ..<n>n'Y ea..em.m .xua nu. >-nrerm n' IJtiJ Businesses'Perceived Help front City How the City can Help Businesses safe fn me-eat L..wp R.e,iI mote chamber of 1%- --- cW rnu.:l.t ar c amnsnr-___ _ - TR 2%u 13:ee. t�' Crylm.#'nrn.a i. NptNes IL% - .�+..w nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ 18 Exhibit C - Business Survey Fountain Hills - Business Survey Name of Company: Type of Business: Location of Company: Position of Interviewee: Resident:Y/N Local/National/International: L N I Nearby Competitors: No Yes If yes.number: Number of Employees: or ❑ < 10 ❑ 10 to 25 ❑ 25 to 100 ❑loo to 200 ❑ 200 to 500 ❑ >500 What proportion of your employees live in Fountain Hills? How long has your business been in Fountain Hills?❑<1 yr❑1-3❑ 4-8 0 8-12 0 >12 How long has the company existed? ❑ <1 yr❑1-3❑4-8❑ 8-12 ❑ >12 What drew you to Fountain Hills? [partners,demographics,geographic location,the Fountain.etc.] What do you feel the primary benefits are to being in Fountain Hills? Do you see any disadvantages to being in Fountain Hills? What are the major factors that affect your business revenues? How would you describe your typical customer? ❑ Residents❑ Non-Residents of Fountain Hills ❑Tourists What do you think about the mix of businesses in your plaza? How do you perceive the city's efforts to help the business community? What has the city done to help your business succeed?What can the city do to further help your business? nVg Phoenix, AZ Seoul, South Korea Heidelberg, Germany Glendale, AZ • 12/11/2012 C Q'1 ecvi w New Venture Group Survey Process Fountain Hills Business Profile Open-Ended Questions Supplemental Materials Venture Fountain Hills-Business Survey Survey Process 31.11...19 o:..r.o o... • Business Survey x..��.m.,...-..mow o.:00:40«0.n0.n • Online Business Identification �, p.".„. ... .•,.w r„. • 2012/13 Budget—District Map • NAICS Codes 52, 54, 62 `""'"°'"'° Venture �..., o , . .. . ..gym• ,enure group group 1 12/11/2012 Survey Process Business Types • Business Classifications • Business Survey • Level of Interviewee Employment • Online Business Identification • Local Business Community • 2012/13 Budget—District Map • Employees • NAICS Codes 52, 54,62 • Founders Nevv Venture group .,-:',..•:� What Drew Businesses to Fountain Hills 35% 30% 26% 25% 20% 18% 15% 17% 15% 1z% 1% 1 SURVEYANALYSE :, Demand Demographics Location Opportunity Personal Resident • Ts quieler here.The pate olds is slower,and es not so busy," • 'Large amount of roonsions9ryhendhorses.Older,upper-classpopuletion' • "A group otpeople thought they needed a theater 2 12/11/2012 Primary Benefits 40% Challenges to Doing Business 35% ..._..34%_ 3D% 25% 27% Zp% 20% 25%'_- 20% ... 7 7% 15% _...... 15% 14% 10% -- 3% 5% 5% 5% g%_ • •. _.�._.. __ _ • 10% 9% 5% IIjlr2 o a" Oe 0% _ Ell Q cp1' 6¢elOuiel Demographics Location Socioeconomic Environment Non-Resident �� O • The primary benefits are the large influx of visitors during the winter and the amount of money people • 'We have a low amount of customers in the summon Morally no customers during hot summer days." in the area spend' • -The concentration of business in the fourth quarter it's causing the store to move to a smeller • 'It's a small loire.SO its Pke being a big fish in small pond." location nearby.' lJ.'.I;ktiri:i ,..,:,,yp stoup What Has the City Done? Major Effects on Business Revenue 70% 40% _..... _ ... ............... _....... 61% 60% 34% 50% 30% UK 40% • 25% 20% 16% 5% 11% sot 5% 0% 2% I . II , Nothing City Sevin. Chamber of City Investments Other(Sarery,Stan- Commerce ups,Programming) Competition Demographic, Economy Government location None Snowbirds • 'Snowbirds,easy to drive to Scottsdale rather than keepbusinassN Fountain Hilts." • 'Nothi�Wa have been Chamber of commerce members for t5years.They haven't done anything p • 'The crag fairs that are held in the area,the economy and fluxes in population due to winter visiors.- • 'There are great events,the art fair,and a greet high school.' • 'Inadequate signege and craft fairs in the vicinity' Vk'{mrtl.; • "Thecdys trying to bring in more start-up businesses.so that's been helping." Vent Up{: . group group 3 12/11/2012 What Can the City Do? 40% Survey Recap • Attractive environment/climate 20% 18% 15% .- ,<%. 14%_.. _._...-+.%. .__..._..._.. • Snowbirds'effect on revenue cycles 10% 5% I • Positives/Negatives of small/quiet town less Restrictions City Investments CApElosiness More Nothing Other plumber or I Presence of Chamber of Commerce mrohtment Entertainment Commerce, Basin, RecmNnen0 •• •That has somerestndivesin eordinancesthatmaks dfficultta Collaboration with local business owners dy 9 a9 promote business." • 'Show where that crty's funds ere going.Make it a visitor town.Mehe Fountain Hills info amiable at casinosrhotels nearby." Ventture Ventur groupgroup Suggested Next Steps Dashboard • Benchmark Similar Towns'Signage • Purpose Policies • Gather Empty Lot Data • Focus Group for Value Model ''e' ( ` I Venture 4111 group Venture group �Ae 4 12/11/2012 Map of Fountain Hills •.„. ., -Tr.„::- t ••=. / lir I Ss. . .a.i4ecen 1..r•ft• (.'''.... ..... ' „.,/"='''', -,.;",- '• 1'' ".' '• -, 1,-•:, • . , VIRTUAL MAPS _ :• .,: (--, Saguaro Corridor Downtown Corridor ,. . \ 11"....4.t— ---t":,1.• V '''',, ' .-. 1 ,-,,,-.,--., ,,,- o ,,,• , fdr,„,1•4/ !' ..... : 3,i4 tt Wi..' • 1 \ j "'.•r' it, `.,,,, ‘,.. 16....,, , .... .... ...-, 7 • . -• r 7 i VA%u re Venture group group 5 12/11/2012 440) Shea Corridor Ft. Hills Blvd Corridor 7 .,, .,/ t — i,„ — I a 1,3 ...r1•,onr. —• ' ''$3'.... . ''...'.."^'.... ! t• A:::4 *.....t.,•...,...... .., t ...t.IT•net I t rev tor.nt -./"'"''' 1.1 • I ,. :,,,,, 1,1. gt/r ,,, 3 .---- ,„ •-• 11., ?Ir..,.. P ... \\ 'k. f...1.... . 0 .0.SA 1 RIg V.' `,... Pr" las,„,._ • .t, _ I ..,— I, E IS Purtle.0 Venture Venture group group 'IMO) ‘110) 6 . , . • tii a ,r.. .... J+ .' .. ' l� _ �1. e a �i�� - iti l" ��y� .R +�'il"II�I "1s"—�"Yp _ :1.. 7 47,141. ` y it �.: Wy .. >ra► — u 4 ' *» �� w• ..4.1M• lam.. y" y� �, { e � �r « r A y4 t'% w c 4 FOUNTAIN HILLS REPORT W.P. CAREY AT ARIZONA STATE UNIVERSITY Honors Business Students at Arizona State University's compilation of information collected through interviews and conducted of current businesses in Fountain Hills, Arizona. Intended `to.- for use in the planning of continued revitalization of the area. W.P. CAREY AT ARIZONA STATE UNIVERSITY INTRO 2 METHODOLOGY 2 QUANTITATIVE ANALYSIS 3 QUALITATIVE ANALYSIS 4 CONCLUSION 6 APPENDIX 7 N FOUNTAIN HILLS REPORT W.P. CAREY AT ARIZONA STATE UNIVERSITY INTRODUCTION In Fall 2012, statistics students at the W. P. Carey School of Business at ASU surveyed businesses in Fountain Hills, Arizona at the request of the Fountain Hills City Council. The purpose of this survey was to assess economic status of Fountain Hills, with the hope to provide insight on what Fountain Hills can do to improve development and address a range of concerns. This survey was intended to capture a statistically significant sample of Fountain Hills businesses in order to provide insight into the entire city's business atmosphere. METHODOLOGY With the knowledge that past surveys conducted through phone and mail by the City of Fountain Hills had difficulty with gathering significant responses, our group sent out pairs of honors students to go door-to-door to most of Fountain Hills' businesses with a survey designed to gauge the town's economic status and needs. Pairs were assigned a particular sector of Fountain Hills, which was comprised of an average of ten businesses. Surveyors stressed anonymity and created a forum where businesses could comfortably share their comments. The questions included those about the nature of the business and their relationship with the city and customers of Fountain Hills. Quantitative questions included: • Business Type • Location of Company • Position of Interviewee • Interviewee's Residency Status (Fountain Hills or other) • Presence of Competitors (Used to gauge market share) • Number of Employees • Proportion of Employees Who Live in Fountain Hills • Length of Business in Fountain Hills: to gauge how long businesses stay in Fountain Hills • Length of Existence of Company:to see what kind of businesses Fountain Hills attracts Surveyors also asked subjective, qualitative questions pertaining to what drew them to Fountain Hills, the benefits and challenges of having their business there, and the factors that affect their business. These qualitative questions are further discussed in the "Qualitative Analysis" in this report. Survey pairs each completed a summary of their survey outing. These summaries can be found in the appendix of this report. QUANTITATIVE ANALYSIS Basic variable summaries were completed for quantitative portions of the survey. Results varied in significance, but notable results were as follows: • An R2 value of 0.53 was found between the time a company has existed in Fountain Hills and the length of time since the company's founding. This weak statistic lacks conclusive implications, but could be indicative that a large proportion of companies had moved to Fountain Hills after beginning in other locations. • Below is a graph depicting a count of survey responses for the amount of time that businesses have been in operation in Fountain Hills and the total amount of time that the companies have existed. 50 40 — — tis How Long Company has 30 existed in 20 Fountain Hills How Long 10 company has 0 _ existed <1 1-3 4-8 8-12 >12 year years years years years • Companies listed, on average, 2.5 nearby competitors. • Interviewed businesses reported that an average of 67%of employees were residents of Fountain Hills. However, the median employee residency percentage was 77%, accounting for possibly skewed distributions. • Below is a table presenting counts of businesses in various fields. Interestingly, 63% of restaurants, 65% of professional services, 64% of retail, and 100% of finance and insurance companies interviewed had been in business for longer than 12 years. Type of Business Count Education 4 Entertainment 1 Finance & Insurance 8 Health 11 Professional Services 20 Restaurant 11 Retail 14 Total 69 W QUALITATIVE ANALYSIS The qualitative portions of the survey focused on the background of Fountain Hills' business owners and their experiences holding a business in the town. Questions were asked regarding business mixes, unique factors that affect revenue, efficacy of city efforts, and other pertinent business topics. Those surveyed were also given the opportunity to provide additional comments to the survey team. The following questions were qualitative and are numbered for convenience: 1. What drew you to Fountain Hills as a manager/business owner? 2. What do you feel are the primary benefits to being located in Fountain Hills? 3. Do you encounter any special challenges that arise from being located in Fountain Hills? If so, what? 4. What are the major factors that affect your business? 5. Does the mix of surrounding businesses aid your business in any way? 6. What has the city done that has helped your business succeed? 7. What can the city do to help further your business? Responses for the qualitative questions have been summarized and categorized by our team to draw general trends from the data. An average of 63 businesses provided qualitative feedback. The table below presents the top three responses for each question, shown with their respective counts. Q1: Draw to FH Q2: Primary Benefits Location 19 Small Size/Quiet 19 Demographics 12 Friendly town atmosphere 15 Already Resident 11 Socioeconomics 8 Q3: Special Challenges Q4: Factors for Business Rev. Snowbirds 16 Snowbirds 22 Size/Quiet 13 Poor Economy 17 None 13 Demographics 11 Q5: Business Mix Q6: What has the city done? Yes 40 Nothing 28 No 24 Provide helpful city services 7 Q7: What can the city do? Less restrictions 17 City investments in maintenance 9 and business As evidenced by Question 3, winter residents are commonly considered a large barrier to business. However, Question 4 presents winter residents as a factor that affects business revenue, but not necessarily in a negative aspect. Many participants listed Fountain Hills' small size and peaceful atmosphere as a primary benefit to business operation. However, other participants voiced distress over the small-town environment of Fountain Hills, fearing that it hindered growth and development. Question 6 suggests that large majorities of participants felt that the city had done little work to aid their businesses. Less restrictions on ordinates regarding practices such as sign placement was a common request for city action. The desire for greater city investment in youth attractions was frequently voiced, accompanied by a common participant request for a movie theater. V7 CONCLUSION Overall, our survey of businesses in Fountain Hills revealed vital information that can provide the city with better insight to help further the success of local businesses. Out of 110 businesses surveyed, 74% were local businesses, 11% were national businesses, and 15%were international businesses. The survey demonstrated that most businesses in Fountain Hills were local businesses that had been established in the city for more than 12 years—a trend consistent with the city's concern about the stagnant economic growth. Undoubtedly, the vast number of older businesses indicates the slow economic development cycle occurring in Fountain Hills. Many of these businesses surveyed expressed that they were drawn to Fountain Hills by its beautiful, safe, and small community environment, which was satisfactory for their businesses' establishments. Many proprietors of these businesses were also proud to be residents of a small, beautiful city in a convenient location. On the other hand, some businesses voiced that the small town atmosphere of Fountain Hills was not "business friendly" since it attracted fewer customers and provided less income to sustain businesses. Some businesses also disclosed that other local businesses around them were leaving the block and vacating the city because they could not garner enough profits. They suggested that Fountain Hills do something about these vacant buildings left behind before it becomes a deterrent that pushes away prospective customers and other small businesses. Additionally, many of the small businesses surveyed were spread on different spectrums about the issue of winter residents. Some businesses suggested that winter residents are large barriers to the success of their business. Others claimed that although these residents may be large barriers when they leave, their short period of stay in Fountain Hills increases profits every year and augments the number of new local customers. Some businesses suggested that the city could specifically target these winter residents by organizing fairs or events during the "winter resident season" involving local small businesses so that not only can winter residents enjoy local products and services, but businesses can also market to these residents and attain more profit. During our survey analysis, we also asked businesses about what the city can do to further their success. Many businesses believed that Fountain Hills could enhance the success of their businesses by eradicating the restrictions of signage so that businesses could freely market their products and services to the community. Moreover, some businesses felt that the Chamber of Commerce was isolated from the circle of small businesses;they wanted the Chamber to be more involved in the local business community and provide a hub where all of the local businesses can come together, network, and share advice and suggestions among themselves. Other businesses suggested that Fountain Hills could promote local products and services to residents by creating a discount program that will provide an incentive for locals to buy local products and services. Although this survey illustrates a brief analysis about the business statistics in Fountain Hills, the results and commentary from the survey reveal that businesses are proud to be established in Fountain Hills and want to be a part of shaping the development and the future of the City. APPENDIX The following summaries were written by the survey pairs that conducted this survey. Each pair was tasked with approaching a specific "sector" of businesses and asked to write a brief report regarding their experience. Business Sector X Several reoccurring themes were made evident by surveying a few business owners in Fountain Hills. Business owners seemed to be universally drawn to the area by small town atmosphere,the geography and the community. While these were not the only motivating factors, they provide a firm base to understand some of the forces that bring people to Fountain Hills. The overall message from business owners was positive, but many owners felt that current rules regarding signage were detrimental to their businesses and that there is a perception that the city is cutoff from the larger metropolitan area. Many business owners sighted that the small town atmosphere is what drew them to Fountain Hills. The parks, walking paths and of course the fountain were considered to be a boon to the overall atmosphere. Also many owners stated that the convenience of being able to walk from their houses to other stores and to work was a very important to them. This led many to state the importance of better sidewalks and accessibility to stores,which they felt would increase the small town appeal and play to the cities current strengths. For this reason owners felt that signage restrictions were slightly inhibiting, because it is hard for their customers to tell where there businesses are located. It prevented people from feeling the need to walk around from shop to shop and take advantage of the convenient placement of shops. Finally, many of the people surveyed lamented the fact that people who live outside of Fountain Hills have the perception that it is very far away from the rest of the metropolitan area. The owners agree that the city is not much farther than other cities in the area and that the perception that Fountain Hills is a long drive is what prevents more people from visiting the area. Business Sector X From observing the economy and society of Fountain Hills, we got the impression that the pace of life is slow but industrious. We did not find many people walking along the sidewalks in the district we surveyed, nor did we observe much interaction at the town fountain. Since we surveyed Fountain Hills on a Friday afternoon, we believe that most people were working, closing up shop, or already heading home. Many lots had vacant properties, including the medical center, which served as our anchor point for surveying. Medical facilities of Fountain Hills—Our assigned focus was to survey a set of medical blocs. We succeeded in locating roughly half of the firms given on our survey list, which suggests that the others had moved away from Fountain Hills since the list was created. Business appeared to be smooth and continuous throughout the afternoon, which suggests that these practices are attracting and retaining a loyal patient base. When pressed for information about their perceptions of Fountain Hills, receptionists deferred to the practice owners or to others whose knowledge of the town was more extensive.This suggests that, assuming the clinical practitioners or owners have lived in Fountain Hills longer than other staff members, there is a discrepancy of knowledge between the young (or new) residents and old (or longtime) residents. Due to the aging demographics of the town population according to the 2010 census, we predict that there will be an increased desire for medical care. We also predict that the presence of health care firms should increase regardless of town council policies; however, the health care industry would perform better if more citizens from the greater Phoenix area move out to Fountain Hills, due to the increased consumer base. Recommendations—For the medical facilities in Fountain Hills, as well as the overall viability of the town itself,we have a few recommendations for public policy decisions: • Create conditions that allow for easier renting of vacant property. Where feasible,that could mean reducing the municipal property tax rate or helping conduct a public auction for repossessed lots. • Entice current businesses to remain in Fountain Hills by bundling different medical and other service-based activities together. For example, create a public address campaign for fitness clubs to partner with medical clinics, sharing their customer base and binding the town's businesses together for a common purpose. • Feature a new business in a Fountain Hills publication (magazine, newspaper, newsletter, etc) to draw attention and awareness for potential customers. This will personalize the business community and give customers more information on where they may go to get the same services in Fountain Hills that they may have gone elsewhere to obtain. Business Sector X During our visit to Fountain Hills our field team learned a lot of interesting things about the city. First and foremost, we realized just how quiet the area was there were hardly any vehicle traffic and basically no foot traffic at all. It seems as if someone had put a mute on the area, it was a pleasant change to the loud and hectic atmosphere of other cities, for example: Tempe.This tranquil quality of Fountain Hills was actually in large contention between the different generations that lived there. The older residents found this quality extremely appealing as it allowed for a more comfortable pace of life, they found the silence a nice respite from their past busy lives. However, the younger residents thought the silence was boring and very stifling, there was a tone of dissatisfaction in the kind of recreational activities they could do. The younger residents expressed the need for more things to do, a lot of people told stories about how they went to school or worked in Fountain Hills and then left the city when they wanted to anything. We noted a distinct difference in the quality of living in relations to the proximity the house was to the fountain. It seemed like the closer the real estate was to the fountain the nicer it seemed and the farther away you moved from the fountain the less attractive the properties seemed to be. There was a lot of loyalty between the local businesses and their customers, there was a definitely a sense of community, a lot of customers showed their devotion to the business and a lot of customers were repeat customers. However, there was a disconnect between the businesses and the local government. 00 Business Sector X For the Fountain Hills project, we interviewed local companies in order to gather data regarding their business, as well as to hear their input on the actions of the local government and further actions they could take in order to help these businesses succeed. The six businesses we were able to contact were Pal's Inn Pet Resort, Fountain Hills Theater, Fountain Hills PC Repair, Hollywood's Body and Paint, Friendship Pet Hospital, and Alamo Saloon. However, we were unable to contact many other businesses, either due to time conflicts, confusion on how to find the company, or the company being unresponsive to our calls or visits. After interviewing each of the six companies, we analyzed their company, pinpointed a variety of issues the companies were having, and came up with qualitative recommendations that the City of Fountain Hills could put in place to help these businesses become more profitable and the town more enjoyable. An issue that was highly prevalent among a majority of the companies we interviewed was the code restrictions on signage. One company complained that the city wouldn't let them put up unmanned, a- frame signs on the street, because the town is not pro-business. Another business said that the city is biased between businesses and more lenient regarding code restrictions on other companies, because the company we spoke to, as a bar, advertises alcohol. A recommendation we would give Fountain Hills would be to revamp the downtown in order to make it more of a tourist destination, and display tourist information at nearby casinos and hotels. Another recommendation we came up with was to make what the City Counsel does more transparent by showing where the city's funds are going, as well as obviously lightening up on code restrictions. Business Sector 5 Upon first impression of canvassing the strip-mall that we were to be interviewing the businesses of we noticed that the majority of the shops on our list were not at that location any longer. Four out of the ten businesses on our list were left:Zusia's Doggie Salon & Su "PAW"Market,Anytime Fitness, Pisa Pizza, and Delux Nail and Spa. Three more of the lots were empty. We were surprised that the majority of the businesses on our list have already moved out and were replaced so quickly, meaning that our list was recently outdated and the business market had such high turnover and was so unstable. The responses we received were varied; some were ecstatic to be interviewed, they appreciated their opinion being heard, and some were indifferent and disbelieving that their business situation could be bettered by the city of Fountain Hills. We did not receive responses from two of the businesses, Zusia's Doggie Salon& Su"PAW"Market and (Insert Business Name) Yoga. One of the most memorable interviews we had was with the VP of Marketing and Sales of AZ Trails Travel. Ironically, this person was completely content with his business and did not have any complaints unlike every other owner or manager we spoke with. He did, however, have suggestions on how to encourage business development in Fountain Hills. His opinion was that the best way to improve the business market in Fountain Hills would be to start with changing the leadership to people that are more progressive and business-minded. He believes that with leaders that understand economy comes growth and economic development. He recommended a committee or task force of business leaders in the community that will recruit, attract, and mentor businesses in the Fountain Hills area. tD Another interesting response we received was from the Pisa Pizza owner's son. He seemed to be involved in the community and informed us that the city of Fountain Hills did have plans a long time ago to expand and populate itself by building a movie a theater and other venues that would encourage people to go out at nighttime. This promise was never fulfilled. His opinion was that the city was very quiet at night and that encouraging people to participate in nightlife would allow residents to be more involved in the business market therefore building the economy in the area. Overall, people were happy with the businesses they were running but were unhappy with their revenues. Most of the business agreed that snowbirds helped a lot during the winter, but business during the summer was slow and therefore almost negated any revenue that was made during the winter. This made an impression on us especially since for them winter is only four months out of the year while summer is eight months of struggle. Business Sector 9 In Business Sector 9, we interviewed three service companies, FMS Ferrari Service, Mike's Automotive, and Chaparral City of Water Co. All three companies have been located in the city of Fountain Hills for greater than twelve years, are small business with fewer than 25 employees, and are local to Fountain Hills. In response to both questions regarding both benefits and drawbacks to being located in Fountain Hills, all of the business mentioned the small community and friendly environment as being influential. Two of the three businesses, emphasized the importance of word of mouth and that there success relies upon the quality of their work. The businesses also claimed to benefit from the affluent nature of Fountain Hills' population as a major component to their regularity of customers and overall success of the business. None of the business expressed any strong concerns with the city itself, with the exception of one business that mentioned city ordinances restriction of signage used to advertise. Collectively, we have come to the conclusion that the businesses we interviewed were neither concerned nor interested in individual business expansion. More so, all three businesses realistically expressed that the majority of their customers are residents of Fountain Hills; the individual businesses do not draw customers from outside of the city. As college students visiting Fountain Hills, we were aware that the city's population reflects an older community, shown by the secluded location, quiet streets, and vacant buildings. It is clear that there is an abundant amount of space available for the emergence of new businesses. However,the business themselves were hard to find, map locations were absent or incorrect, as well as an overall lack of visible street signage. With that said, expansion or increase in residents will reflect an in increase service and retail customers, thus aiding the success of Fountain Hills merchants. We bear in mind that our conclusions were solely based upon the business we interviewed and may not reflect the city as a whole. Business Sector X Our survey of the business located in the downtown sector of Fountain Hills produced many results that were consistent across those that we were able to get responses from. In total we received 4 responses from the total of 24 businesses that we attempted to contact. The biggest issue in getting in contact with the businesses and their owners or managers is that many of them were not on location during the day in which we surveyed (Friday). There were also three businesses on our list that had F,% O shut down and were no longer open. This highlighted a trend for us, in that there were numerous open spaces for rent/lease, more than one would expected from a downtown area. Some of the buildings were nearly empty, while some had only a few openings available; in general there was an excessive amount of empty offices and storefronts. Of the responses that we obtained there were several areas that tended to repeat across each survey. Each business had listed numerous competitors within a very short distance,with no less than 5 as a response. A great amount of the workers at each business also lived in Fountain Hills, showing that a lot of the workforce comes from the surrounding area. In every response we also found that the primary benefits for being in Fountain Hills were mimicked in each survey: Small town, quiet, and affluent community. These also tend to carry over into the question "Do you see any special challenges that come from being in Fountain Hills?"; every response was that the community was based on seasonal customers and that it was a small community, which hindered the business in the summertime months. Overall the respondents had a positive view of the city and had very limited thoughts on how the city could help their business succeed. 50%of our respondents noted that they were part of the chamber of commerce. Business Sector 17 Our group interviewed the businesses of sector 17, an area along Shea Boulevard. Within this sector we encountered several businesses unable or unwilling to participate including: Streets of NY, Subway, MCO Realty, Ross, and Famous Footwear (being out of business). Utilizing time left to us after finishing what we could, we also visited Munich Gyro's, McDonalds, and Comfort Inn, all of which were in a nearby location. The first thing noted was that all the businesses enjoy being in Fountain Hills. They view the area in very positively. It is seen as a clean, nice place,with good residents. Additionally customers are loyal, nice, and typically have good incomes. The size of the town means that there is usually little competition, a leading reason for why businesses located where they did, and the nearby highway is helpful. However, owners also feel that even with the highway, not enough business is being brought into the town. Often, it would seem Fountain Hills' main non-resident consumers come as a result of Scottsdale's overflow. Also, not only are not enough customers coming in, but too many leave during the winter to make business viable;there is simply not enough consistency in quarterly performance. As to what businesses hope the city will do for them, the main answer was increasing presence in the community. The most specific answer, which seemed to eloquently state what others were hinting at, was that businesses should have more of a say in the chamber of commerce and the tourism bureau. Another popular answer was to develop the downtown further, bringing in a movie theatre and other nightlife attractions. Overall, the attitude was that Fountain Hills is an attractive community that simply needs more business friendly development. 12/11/2012 40 Agenda 6,;;,1�; •Types of businesses • Older Economic Assessment of • Locals Fountain Hills •Appeals of businesses A W.P.Carey Honors Business Statistics Course Perspective • Benefits Presented to •Challenges Ken Buchanan,Town Manager and The STRATEGIC PLANNING ADVISORY COMMISSION Goals -." • To gain an accurate sample of the businesses in the o ' j� ,fit* ' community of Fountain Hills g 1*> ,,,.` • To gain a perspective of current state of businesses ~ 4. i;' -- ranging from local to international o - + i , •To obtain constructive criticisms and opinions on future ,4".ji-- + actions and development of Fountain Hills •P: I P v • Public and private sector �, y b:+.'�•. �` , a;; ` •To provide accurate feedback based on accumulated �Kr� t- data for future growth of Fountain Hills ili:/i rs k a ,r V^r-_ o o :���� how 60M ram.. Methods of Research - Survey Form and '--;,.•..... x.,.,,, format for ''''''-o—" °° -- — facilitated ,—w''°a.~—• c Q„ :. 0,.,;° • Name of Company c:<4.,m,U:w„u<a.,:. •Type of Business,Age of business interviews wan w°.=,°a.7,..-.--•=r...41-e_ • Location s.,oa,,o,r3..a...0 a • Nearby Competitors a o�•ol,o•roe„oar • Number of Employees .4.m...L.>a qa My �—4.„• - • Benefits of Fountain Hills ,,,.....nz,,, “,,.--;-..,.,-,,,;.,,,;,,",, •Challenges .=awm•a.�s ,-., ..,.,. • Factors affecting performance • Typical customer(resident,non-resident,tourist,snowbird) 1:11•. .__11:1.ahva..v,:rt.....A.._Cr..s...7u•,1.•.,:;..4.::A • What can the city do to help? 1 1 - 12/11/2012 ..rr Types of Business Types of Business ■Education I1% I •■Local -National ❑International `eEntertainment AIM / —o Finance& / Insurance r11°� ..` ■Health FKta tr.lt t+tt 3 ltr ilia t� j� o Professional Service 15% rill rot rg f r 2 Restaurant !�Il;.:!a•�;::;��!: , ■Competitors —No Competitors ❑Na Response � ❑Retail Competition Top Sources of Income - Currently Age of Businesses • Administrative,support,and waste management Age of Business • Wholesale Trade <1 year •Markets and Grocery stores 1-3 years • Healthcare and social assistants 4.8 years • Ambulatory Healthcare Services 8-12 years >12 years 0 5 10 15 20 25 30 35 What drew you to Fountain Hills? Appeals of Fountain Hills • Easy community to work with;friendly;wealthy Resident 1. • Job opportunities,business opportunities Personal • Connection to the city through family Opportunity • The fountain Location • Landscape • The fair Demographics • The Weather Demand • Affordable real•estate 0 5 10 15 20 • Not a lot of traffic • Low crime rate 2 12/11/2012 Typical Customers Major Factors that Affect Business ■Non-residents o Residents taTourists•Winter residents on-residents •Winter residents • Average age,wealth level 1% lifestyle of residents • Economy • Inventory buildup •Travel off the highway • Can't raise prices • Shutting down of other businesses • Get to know the residents Resident: 77% •Younger families moving to • Inadequate signage other communities •chart excludes businesses that did not respond Primary Benefits of Business in F.H. Primary Challenges of Business in F.H. • Residents are friendly, • Customer demographic: •Shopping centers are spread out easy to work with,and wealthier loyal • Beautiful city • No new traffic or city growth • Great reputation •Tourists and vacationers •Distance and isolated location of community •Small community;less crowded;easy to manage • Less competition:can provide needed services • Difficulty attracting non-resident customers City Cooperation with Businesses Primary Challenges (continued) •Seasonality of residents •25%believe the city has done little to help their •Sign regulations business succeed •Competition with Scottsdale and limited diversity •15%believe the city has done something on an of stores individual basis •Limited nightlife •60%of companies chose not to comment or were • fps unaware about this subject • Closed for holidays 3 • New Venture Group and Barrett Honors College W. P. Carey School of Business Arizona State University Introduction Hello,we are from the W. P. Carey School of Business and Barrett,the Honors College,and we are working with the city of Fountain Hills to collect some information about the current businesses in the city. That information will aid Fountain Hills planning for the downtown and commercial districts. Any information that you chose to share will be anonymous and only used to compute averages. May we speak with you or your owner/proprietor/supervisor? l a Name of Company: Type of Business: ,,,,,,.,cation of Company: Position of Interviewee: Resident:Y/ N Local /National / International: L N I Nearby Competitors: No Yes If yes,number: Number of Employees: or ❑ < 10 ❑ 10 to 25 ❑ 25 to 100 ❑ 100to200 n 200to500 I I > 500 What proportion of your employees live in Fountain Hills? How long has your business been in Fountain Hills?❑< 1 yr[1 1-3❑ 4-8 ❑ 8-12 ❑ >12 How long has the company existed? I I < 1 yr ❑1-3 ❑ 4-8❑ 8-12 ❑ >12 What drew you to Fountain Hills? [partners, demographics, geographic location,the Fountain, etc.] What do you feel the primary benefits are to being in Fountain Hills? CITio you see any special challenges that come from being in Fountain Hills? What are the major factors that affect your business revenues? How would you describe your typical customer? ❑Residents ❑ Non-Residents of Fountain Hills ['Tourists ❑ Winter residents of F.H. Does the mix of businesses in your area aid your business in any way? What has the city done that has helped your business succeed?What can the city do to further help your business? L 12/11/2012 Proposals by Business Owners Concluding comments... •Majority want less restrictions • Primary challenges • Signage/advertising • Trouble bringing money into the community • Many want city investments • Paradox of balancing what everyone wants • Put money into the economy through renovations •Opportunities •More communication • More involvement with the city • Newsletters,etc • More cooperation from the city • More options for younger people •More say in decision making Thank you! Appendix Selected statistical patterns Questions? Age of company Et years in F.H. Number of competitors nearby How long has company existed? a gam or auks a.mp,oy hs.,y e..by mmpeteoa,toughly how m.ryare there)/Data Set v1 Most companies y°01 have about 2.5 �\\ �°°a competitors nearby 3 j" The companies that have been in Eli the longest _ °.os are also older companies _ ! - .L_ g 9 A let Age&years in Fountain Hills correlation: +0.73 Mode: 2.5 Average: 3.6 Perhaps influences lack of cooperation? 4 12/11/2012 Proportion of employees from F.H. Histogram of What proportion of theiemployees We in Founein Rilb? Note: Companies who have been In FH the longest also ,:I This group of companies have the largest have 95%of employees number of from FH area _ employees(on average) ) os 0 0 0 a 9 Most companies have virtually all employees from Fountain Hills area 5