April 2009 Economic Update

The EDC has been actively engaged in economic recovery efforts with some exciting outcomes to report over the last six months. I’ll briefly talk about the most significant, and let April’s Economic Outlook tell the rest of the story.

Our partnerships with the City of Ocala and Marion County have been strengthened to the point where both governments have prioritized economic development as an essential service and see economic diversification as a critical need to place Ocala/Marion County in a “Constant State of Readiness.” They have agreed to a joint economic strategy featuring a prioritized list of potential business parks, and the EDC’s Sites Task Force is serving as an advisory board to help with the creation and inclusion of an economic element in the County’s Comprehensive Land Plan.

The development of business parks is the single most important element necessary for quality job creation and combating our growing unemployment rate. It is also the number one priority for the EDC and our partners this year. Several properties have already been identified, but the creation of 44th Avenue will have the most direct impact on the Cone Distributing expansion project and two other potential new projects.

We heard at our recent Federal Economic Stimulus Briefing that dollars have begun and will continue to flow into our community to assist with economic recovery efforts. But, we can’t wait around to see what happens. It is incumbent upon us to work with our partners to regain a healthy, strong and prosperous economy and maintain the quality of life we have come to enjoy. That is exactly what we plan to do!

Best Regards,


Pete Tesch
President/CEO

The EDC will conduct a broad based campaign to assist with the creation of 2,947 high paying jobs in Ocala/Marion County during the years 2005 – 2009.  Objective 1.1 Target specific industries for job creation through a comprehensive business attraction/retention effort and marketing plan.

• Through the second quarter of the final year of our five year strategic plan, the number of projected jobs created at the 115% -120% rate is 1,909 (65% of goal), creating $165.5 million in capital investment (95% of goal) and $83.8 million in new payroll (112% of goal).
• The cumulative number of jobs created for the year is 305 with 305 being at the targeted range of 115% - 120 % of AEPW. The Existing Industry Program yielded 25 company visits this quarter with a total of 31 for the year.
• A Business Climate Survey was conducted with 198 responses. 52 companies indicated the need for a visit from the Business Solutions Partners’ staff. The EDC responded to 11 of those companies with actual visits to 2. One was interested in Industrial Revenue Bond financing and the other needed more information on EDC services.
• EDC staff is actively working with the “Bulls Eye” companies to support the case for economic diversification with the growth of technology–enabled businesses. Lockheed Martin received a $500,000 QTI grant to assist with their expansion; IHMC received a $900,000 Economic Development Administration (EDA) grant to help with renovations in their new facility. A general contractor has been selected and work should begin shortly. They also received an additional $250,000 over five years from the Florida High Tech Corridor Council (FHTCC) to assist with individual research by scientists at the University of Florida.
• In the second quarter, The Stratecation Campaign established contact with executives in 75 companies via phone who requested follow-up calls and notifications for possibilities in the future.
• The Florida Virtual Entrepreneur Center, financed by the FHTCC, is now operational and the EDC is the main point of contact. This site is designed for easy use as a one stop library for entrepreneurs looking for business resources. It provides links within each Corridor county to all the latest business resources – such as local permitting codes and forms, statewide corporate registration information and federal trademark law. Currently FLVEC.com is linked to the EDC, Ocala/MC Chamber, Workforce Connection and CFCC.
• Marion Regional Manufacturers Association’s 2009 service agreement is in effect and has been implemented.  

• The City of Ocala and Marion County have agreed to create a joint economic strategy featuring a prioritized list of potential business parks.

SITES

• Staff convened several individual and joint sessions with EDC, City and County staff and officials. They discussed coordinating future infrastructure needs in commercial corridors and commerce/business parks including Bay – I property and the creation of 44th Avenue which will have a direct impact on the Cone Distributing, Inc. expansion project. An EDA grant for $3.5 million is also in the works to provide 75% of the funding for the road with an $800,000 match split between the City and County.
• The EDC Sites Task Force is serving as an advisory board to the County Planning Department. They will assist with the creation and inclusion of an Economic Element in the Marion County Comprehensive Land Plan as well as identify potential sites for Business/ Commerce Parks going forward. Two publicly noticed meetings have taken place with three more planned to complete the process in June.  
• Staff is assisting with the planning and promotion of the City’s “Airport Unveiling” event taking place on May 1, 2009. 

CUSTOMER SERVICE

• A Customer Service Committee has been created which developed a matrix to measure excellent customer service for all businesses. The next meeting scheduled for April will identify “pilot projects” to test the matrix and evaluate the delivery system.

WORKFORCE

• MTI has a current enrollment of 379 students. 42 have been placed in paid internships in field. 15 have jobs in field and 54 have jobs out of field. 365 certifications have been awarded to MTI students to date. Due to the downturn in the economy, internship availability has decreased considerably over the same time last year. EDC also provided marketing materials for January and Fall student recruitment.

• Sponsored and participated in the Heart of Florida Regional Summit in March to promote the prospectus for the Heart of Florida Technology Initiative.
• Commissioned by the EDC Technology-Enabled Task Force, Fairfield Index, Inc. created a prospectus for the RFP process to implement the HOF initiative. Representative Kurt Kelly is pursuing funding from State legislators to support this initiative.

The EDC will expand and enhance effective methods to communicate the activities of the organization to its key investors and partners.  Objective 2.1 Retain and grow the EDC’s investment base.

• Staff created new collateral materials to be distributed to potential, new and existing EDC Investors. Materials included the 2007/08 Annual Report, the RTB Task Forces Recommendations Brochure, the new Existing Industry Brochure and the quarterly Economic Update with links back to the EDC website.  
• Included Chamber initiatives, “Buy Local” and Small Business and Entrepreneurial Development programs in the “Steps Toward Economic Recovery” Plan to garner additional community support.  

• 5-year goals and accomplishments are provided on a quarterly basis in the Economic Update  
• The “Raising the Bar” recommendations with action steps were approved by the Board and incorporated into the 2008/2009 EDC Strategic Plan.
• The EDC’s Economic Stimulus Briefing was held on March 25, 2009 and convened nearly 125 business executives, community leaders and elected officials. They received valuable information regarding stimulus dollars that have or could flow into Marion County in the areas of Workforce Training, Transportation & Infrastructure, Healthcare, Education, and Energy. A specific case study by Elster AMCO Water, Inc. was also presented to provide specific methods for businesses to access stimulus money. For important links and information on upcoming follow-up programs, visit www.ocalaedc.org/StimulusScouts.asp.

The EDC will obtain public/private financial support to sustain the planned activities in the annual strategic plan. Objective 3.1 The EDC will raise additional public and private sector funds to assist with the operational aspects of the EDC.

• The EDC currently has 131 investors with the addition of 1 new investor ($10,000) in the second quarter, 10 investors declined to renew their investments to date ($11,800) bringing the current pledge amount of the Lead The Way Campaign to $2,440,516 over five years. $2,059,888.89 has been collected to date.
• To date for 2008/2009 fiscal year, $354,174.77 has been invoiced with $335,049.96 collected for a 95% collection rate. An additional $99,010.35 remains to be invoiced through September 2009.
• The EDC secured funding from both the City and County for the FY 2008/2009 and has worked closely with both entities to prioritize economic development as an essential service. Both the City Manager and County Administrator created departments with personnel dedicated to community sustainability with a strong economic development focus. They will work with the EDC and businesses looking to locate or expand in Ocala/Marion County.

• Marion County experienced an unemployment rate of 12.3% for February 2009, up from 6.0% a year ago. According to the Florida Agency for Workforce Innovation (AWI), Marion County’s current labor force stands at 140,825 with 17,255 unemployed.

This Economic Update has been developed to meet the communication needs expressed by our investors. The EDC has been asked to provide quick, easy-to-read highlights, with further details just a click away.The Economic Update is the new tool for delivering the Quarterly Report, and other relevent economic updates. Let us know what you think!

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