October 2009 Economic Update

As we are well aware, Marion County is suffering through one of the worst economic downturns since the Great Depression. With unemployment climbing over 12.9%, approximately 18,000 of our residents are out of work. However, there is some good news! Most economists agree that the nation and Florida are finally heading out of the recession, and we will begin the long process of rebuilding our local economy.

Now more than ever, our community must act quickly and decisively to spark business investment and quality job growth in our area. Having the right leadership and harnessing the power of our business community and the public sectors are essential factors to renewed economic vitality in Ocala/Marion County. Those essential factors are now in place, and the necessary leadership is active and engaged with the formation of the Ocala/Marion County Economic Action Team.

The most important thing to remember is that our economic situation is “survivable” and “sustainable”, but economic recovery will take active involvement and responsibility on all levels. These efforts and partnerships WILL bring jobs to our community.

The EDC continues to implement an aggressive local business recruitment, retention and expansion strategy and is currently working 18 active projects. This Economic Update provides you with a final review of the EDC’s fourth quarter activities as well as the close of the Five-Year Lead the Way Campaign.

We deeply appreciate our partners dedicated efforts in assisting our dislocated workers and helping jump-start local economic growth. We also thank our investors for their steadfast support which enabled us to expand our programs and continue on the path to economic recovery.

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 fourth quarter of the final year of our five year strategic plan, the number of projected jobs created at the 115% -120% rate is 1,759 (60% of goal), creating $165.9 million in capital investment (95% of goal) and $75.4 million in new payroll (101% of goal).
• The cumulative number of jobs created for the year is 165 with 165 being at the targeted range of 115% - 120 % of AEPW. The Existing Industry Program yielded 52 company visits this quarter with a total of 102 for the year.
• There are currently 7 projects in the works for expansion of local companies and 18 new companies considering Ocala/Marion County as their business destination.
• EDC staff is actively working with the “Bulls Eye” companies to support the case for economic diversification with the growth of technology–enabled businesses. Intellon has joined Lockheed Martin and IHMC in this process. IHMC is planning for a grand opening of their facility in mid-December. Intellon received state and local grants in the amount of $734,000 to expand their operations in downtown Ocala. This project will create 10 new jobs paying on average $100,000 per year and save an additional 60 high-paying jobs. Lockheed continues with their expansion plans and have hired 112 new employees.
• The Florida Virtual Entrepreneur Center, financed by the FHTCC, has been updated and redesigned to be more user friendly. Currently FLVEC.com is linked to the EDC, Ocala/Marion County Chamber, Workforce Connection and CFCC.

Communications

• In the fourth quarter, The Stratecation Campaign spoke with executives in 105 specifically targeted companies. From these contacts, 3 appointments were made with South Florida companies, and there are 59 “Works In Progress” (executives who requested follow-up calls and notifications for possible projects in the future). Contacts have been made with NBAA attendees and 4 appointments are currently set for the trade show October 20-22.
• EDC staff presented an aggressive new marketing plan to both City Council and the County Commission in budget workshops held in July and August. Additional funding was requested from both entities to support the plan which is designed to illustrate the collaborative effort between the City, County and EDC to promote our community as an excellent place to bring or expand businesses and create quality jobs .
• Check out the EDC’s Web site, updated on June 30th with the most current statistical information available for all your planning needs. The site is being refreshed and should go live with a different look in October 2009.
• The EDC partnered with LoopNet to embed a live, searchable database in the EDC’s Web site page for commercial properties in Marion County. This resource tool will provide potential prospects with a much more current listing of available properties. Click on Available Properties on the home page to see the mapping and demographic reports that can be utilized with each listing.

• The City of Ocala and Marion County staff submitted a Comprehensive Economic Development Strategy (CEDS) to the U.S. Department of Commerce with a prioritized list of potential business parks. The EDC participated in the discussions to reach consensus on the final list.

SITES

• The EDA grant for $3.5 million has been approved. 75% of the funding will be allocated for the expansion of 44th Avenue with an approximate $800,000 match split between the City and County. The County Commission and City Council passed a joint resolution in support of the development of the Magna property for a business/commerce park .
• The EDC Sites Task Force served as an advisory board to the County Planning Department to create an Economic Element, with goals and objectives, which was incorporated in the updated Marion County Comprehensive Land Use Plan. The final draft document was approved by the County Commission in July and sent to DCA .

CUSTOMER SERVICE

• Cone Distributing, Inc. , Duratek and Scorpion Performance are projects that are being evaluated to test the matrix and customer service delivery system. The City will start the bid process for the expansion of 44th Avenue in December 2009 .

WORKFORCE

• MTI celebrated its 5-year anniversary and was recognized at the EDC’s Annual Meeting and Luncheon in September for consistently attaining their mission to develop quality employees with meaningful careers through strong academic and real world experience programs .
• MTI started with 5 Career Academies in 2004, now there are 8 – including an exciting new law and government program with judges, a county commissioner, attorneys and business leaders on its advisory board – plus an attorney as the full time teacher!
• MTI started with 235 students; this year there are 418!
• Students earned 273 business certifications in year one; for 2008/09, students earned 568!
• Of 167 seniors graduating last year, over 70% are enrolled in a college or advanced training.
• During year one 147 students had either internships or part time jobs; in 2008/09 even in a bad economy 168 students were placed in either internships or part time jobs.

• The EDC, with Gainesville CEO and Progress Energy, hosted the Fifth Annual Site Consultants Weekend September 17 – 19. Seven (7) consultants toured the Ocala/Marion County area to get a first hand look at IHMC’s new facility in downtown Ocala, the Aviation tower and surrounding property at the Ocala Airport Business Park, and the FTBOA’s facility to learn about the equine industry and the economic impact horse racing and breeding have on our community. As a result, one of the consultants is interested in bringing a project to Ocala in the next few months.
• Under the leadership of Representative Kurt Kelly, the EDC convened local and statewide leaders on August 13 for a briefing on our current unemployment status and the anticipated increase due to the closing of Taylor, Bean & Whitaker (TB&W) and its subsidiaries. As a result, the Ocala/Marion County Economic Action Team was created with federal, state and local elected officials, working in concert with our business partners to implement solutions to these daunting issues. The team meets on a monthly basis to report progress on current economic recovery efforts, and has developed a communications plan to effectively disseminate the information to our respective organizations as well as the public at large.
• EDC staff participated with Team Florida in four separate Site Selection Events in Dallas, New York, Chicago, and Atlanta. They had the opportunity to discuss regional initiatives and business advantages, as well as learn about project activity and industry trends from the site selector communities.
• The EDC hosted Enterprise Florida representatives on a FAM tour of Marion County with presentations from City and County staff along with van tours showing available shovel ready sites and existing building inventory .

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.

• The “Skip It” Initiative, an investment renewal plan kicked off in early June. Each current EDC investor will be contacted to secure continued funding pledges for a 5-year time-frame. Upon competition in November, an initiative will begin to secure new investments for the same 5-year time frame .
• Continue to distribute the monthly Economic Update with links back to the EDC Web site.

• 5-year goals and accomplishments are provided on a quarterly basis in the Economic Update.  

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 134 investors. 11 investors declined to renew their investments date ($12,350) bringing the final five-year pledge amount of the Lead The Way Campaign to $2,449,310. $2,147,150.93 has been collected to date .
• For FY 2008/2009, $448,823.00 has been invoiced with $428,172.00 collected for a 95.5% collection rate .
• The EDC secured funding from both the City and County for the FY 2009/2010 and has worked closely with both entities to prioritize economic development as an essential service.
• Funding goals for 2010-2014 renewal pledges are set as follows: 60% will be secured by July 1, and 80% by August 1 . As of September 30, 90% of goal has been secured in the amount of $381,600 annually and $1,803,000 over five years .

• Marion County experienced an unemployment rate of 12.9% for August 2009, up from 8.7% a year ago. According to the Florida Agency for Workforce Innovation (AWI), Marion County’s current labor force stands at 121,4021 with 18,051 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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