HomeMy WebLinkAbout02-14-1995
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CITY COUNCIL AGENDA PACKET
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ASENDA 0 0 1; 9--- Li9 +
CITY OF DENTON CITY COUNCIL dJ,
February 14, 1995 uu
Closed Meeting of the City of Denton City Council on Tuesday,
February 14, 1995 at 5:15 p.m. in the Civil Defense Room of City
Hall, 215 E. McKinney, Denton, Texas, at which the following items
will be considered-
NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO
CLOSED MEETING A'I' ANY TIME, REGARDING ANY ITEM FOR WHICH IT IS
LEGALLY PERM 1,1IBLE.
1. Closed Meeting:
A. Legal Matters Under TEX. GOVT CODE Sec. 551.071
1. Consider claim of MK Construction Company, Inc. re:
Denton Public Library South.
2. Consider authorizing funds to complete roofing
subcontract on the Denton Public Library South.
B. Real Estate Under TEX. GOVT CODE Sec. 551.072
1. Consider right-of-way acquisition options on U, S.
Highway 380.
2. Consider possible parking lot lease of Union
Pacific right-of-way near the Denton Municipal
Complex.
C. Personnel/Hoard Appointments Under TEX. GOVT CODE
Sec. 551.074
Work Session of the City of Denton City Council on Tuesday,
February 14, 1995 at 6:00 p.m. In the City Council Chambers of City
Hall, 215 E. McKinney, Denton, Texas at which the following items
will be considered:
• 6:00 p.m.
NOTE: A Work Session is used to explore matters of interest to
one or more City Council Members or the City Manager for the
purpose of giving staff direction into whether or not such matters
should be placed on a future regular or special meeting of the
Council for citizen input, City Council deliberation and formal
City action. At a work session, the City Council ge-oraily
O receives informal and preliminary reports gn.4 information from city • •
staff, officials, members of City committees, and the individual or
organization proposing council action, if invited by City Council
or city Manager to participate in the session. Participation by
individuals and members of organizations invited to speak ceases
when the Mayor announces the session is being closed to public
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input. Although Work Sessions are public meetings, and c.itize2ns Z
have a legal right to attend, they are not public hearings, so
citizens are not allowed to participate in the session unless
invited to do so by the Mayor. Any citizen may supply to the City
Council, prior to the beginning of the session, a written report
regarding the citizen's opinion on the matter being explored.
Should the council direct the matter be placed on a regular meeting
agenda, the staff will generally prepare a final report defining
the proposed action, which will be made available to all citizens
prior to the regular meeting at which citizen input is sought. The
purpose of this procedure is to allow citizens attending the
regular meeting the opportunity to hear the views of their fellow
citizens without- having to attend two meetings.
1. Receive a report, hold a discussion and give staff direction
regarding a report from PHH Fantus on the results of the
competitive analysis study.
2• Hold a discussion and give staff direction regarding a
proposed workplan for economic development strategy
implementation.
C E R T I F I C A T E
I certify that the above notice of meeting was posted on the
bulletin board at the City Nall of the City of Denton, Texas, on
the day of
(P•m.)~^_. 2995 at ,o'clock (a.m.;
CITY SECRETARY _
NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN
ACCORDANCE VITH THE AMERICANS WITH DISABILITIES ACT. THE
CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN
ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY
SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS
DEVICES FOR THE DEAF (TDD) BY CALLING 1.-800-RELAY-TX SO
THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH
THE CITY SECRETARY'S OFFICE.
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CITY of DENTON, TEXAS MUNICIPAL BUILDING ~ 215 E. MCKINNEY s DENTON, TEXAS 76201
(817) 566.8200 & DFW METRO 434.2529
MEMORANDUM
DATE: February 8, 1995
TO: Mayor and Members of the City Council
FROM. Betty McKean, Executive Director
Municipal Services/Economic Development
SUBJECT: Economic Development Strategy Work Plan
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The Chamber of Commerce and City economic development staff have completed an in-depth
review of the recommendations resulting from the PHH Fantus Competitive Analysis Study.
The attached draft workplan outlines the possible respective roles organizations might play in
implementing the recommendations the Council chooses to adopt.
Staff members will be available for discussion and are prepared to conduct additional research at
your reg4.st,
f3 Ity-Wp can, 'xecutive Director
Municipal Scr ces/Economic Development
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"Dedicated to Qualiq, Service"
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PHH FANTUS COMPETITIVE ANALYSIS B ~ 1
RECOMMENDATIONS
A Aida ~
ECONOMIC DEVELOPMENT STRUCTURE
With the economic development landscape dramatically changing, a more focused, well-funded, and strategic effort is required to maintain a solid, desirable
pace of development in the face of strong competition on a regional, national and even international basis. Adequate funding has been unavailable to the
program. Also, the Economic Development Advisory Board (EDAB) is unnecessarily large, and communication between staff and board has not been
especially strong.
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RECOMMENDATION HI:
Revamp the economic development program through establishment of a new organization structure, the raising and expenditure of more money, setting
appropriate expectations and managing to them, and a focus on brand-building.
ECONOMIC DEVELOPMENT STRUCTURE Economle city Chamber
Recommendation #1 Development of of
Action Items Corporation Denton Commerce Comments
a. Streamline economic development program by XX X City staff will coordinate meetings
reducing size of EDAB to perhaps the five between City Council and the Chamber
individuals who the City Council would ultimately Board need to determine the appropriate
appoint to the Economic Development Corporation j size of the new Board and to appoint nw
EDAB members.
h. Build an ongoing strategic planning process within XX The new EDAB will develop a new
the 1? DC that anticipates and analyzes strategic plan,
developments that effect Denton's competitive
position,
Attendance at trade shows and traditional
advertising should have a limited place in
Denton's overall economic development
campaign.
XX = Leadership role X=Participation
febntary 1, 1995
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PHH EANTUS COMPETITIVE ANALYSIS °'~t'~duVo
RECOMMENDATIONS u:.;t L4~~ c~..-
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ECONOMIC DEVELOPMENT STRUCTURE 3
RECOMMENDATION 112:
PI III Fantus Consulting recommends that Denton consider adopting the economic development sales tax and raising the local sales tax one-half cent, as is
allowed under law, and to earmark the revenue generated strictly for economic development activity such as attracting new business, assisting expanding
enterprises, and creating new job opportunities.
ECONOMIC DEVELOPMENT STRUCTURE Economic City Chattber
Recommendation H2 Development of of I
Action Items Corporation Denton Commlr !e Comments
a. Lay groundwork for adoption of the economic City Council must determine whether to
development sales tax. fund the economic development effort
with a new 1120 sales tax or by other
Determine whether to fund program with XX methods. If an election is called, the r
1/20 sales tax Chamber would then take a leadership
role marketing the campaign. City
Voter marketing campaign XX support would be critical j
b. raising the sales tax is not considered feasible an XX X City Council must determine the level of
economic development corporation could still be funding needed to support the economic
created as an independent structure utilizing development effort and investigate
• contributions from various sources. alternate funding sources.
In thinking about the structure, attention must also
be paid to the necessary budget for FDC. Surveys
indicate a community of Denton's size should have j
economic development expenditures of
• approximately $200,000). i •
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PHH FAN7 US COMPETITIVE ANALYSIS
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HE;COMMENDATIOI\S
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EDUCATIONAL ASSETS '
'I he presence of two major universities, the North Texas Reser :h Institute (NTRI), and North Central Texas College, is a unique attribute of Denton's that
can be used to create economic development opportunities, serve as a lure to potential industrial prospects, and help solidify the City's brand image.
RECOMMENDATION H3:
Better leverage the assets that most distinguish Denton from competitor locations-- its institutions of higher education and its university city setting and
environment.
EDUCATIONAL ASSETS Economic City Chamber
Recommendation k3 Development of of
Action Items Corporation Denton Commerce Comments
a. Ongoing activities involving members of the X XX X City will contact Chamber, universities
university 'communities and the EDC must be and college to arrange initial meeting.
instituted. Underlying these activities should be the The " City/BusinessMniversity Forum"
principle that the City and universities can benefit should consist of Mayor and/or one or
each other. more City Council members, one or two
business community representatives, and
Note: This action item can begin prior to at least one repmsentafl ie from a higher
establishing EDC, education Institution. Each organization
would determine its own representative.
• h. The existing TownJGown Consortium program XX X
The EDC will assume coordination and
should be publicized more and perhaps expanded. facilitation of this grcup. The EDC will
A convened panel of EDC and university look at expanding the activities of the
represeniatives should define an approach with Consortium and promote its activities.
schedules, committees, etc.
c. I iighlight the universities and their atrcnglhs, XX X The EDC will highlight the universities I •
through events like a national music festival at and associated benefits in its marketing
I I NT• program. The Chamber will aggressively
promote and support university activities.
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PHH FANTUS COMPETITIVE ANALYSIS : -
RECOMMENDATIONS ! RFJ
F;DUCATIONAL ASSETS Economic City Chamber
Recommendation #13 Development of of
Action Items Corporation Denton Commerce Comments
d. Institute ajoint economic development effort with XX X The EDC would identify and coordinate
one or more of the institutions. the implementation of appropriate joint
N IRI could serve as a linchpin for such an effort efforts
with UNT, given its stated mission of enhancing
the University's interactions with the business
community.
e. Convene a forum for discussion between university XX X X The EDC would coordinate a task force i
officials, public officials, and business leaders to consisting of representatives from the
dentify one or two potential growth sectors ,hal universities, public officials and business
play off of existing university strengths or areas in leaders to identify potential growth
which the university would like to move. sectors,
One example could be leveraging UN•Ps
excellent accounting program to lure back.
offices of major accounting firms.
~r - Consideration could be given to establishment
1 of a university•relaled research park. j j
• C Create ajoint task force to pursue any such targeted XX X X 71e EDC would chair the "growth JI
grovlh sector(s). This effort could include, among sectors" task force, and each organization
other things: would appoint their own members,
Working with state officials and local banks to
make seed money available i
Establishing a center at the university that could !I
® serve as the focal point for development of the •
sector and attraction of experts/labor.
Consideration of the TI facility or other
available land as a possible center for this effort.
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PHH FANTUS COMPETIT'I'VE ANALYSIS
RECOMMENDATIONS rr_ Ind
EDUCATIONAL ASSETS Economic City Chamber
Recommendation 0.1 Development of of
Action Items Corporation Denton Commerce Comments
g. Design a public relations program that x XX The universities would become a major
simultaneously enhances the universities' respeclivc component of the public relations and
images and Denton's brand image. marketing programs to be developed once
the "cluster analysis" is completed.
Include major references to the universities in XX
new economic development materials created
by the E/D Corp, especially regarding the top.
class programs such as Uhf's accounting and
I'WU's nursing and physical/occupational
therapy programs.
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Leverage UNI's intercollegiate sports XX X !
participation in the NCAA through an i
infomercial that could be produced and shown
during NCAA broadcasts and target advertising
in communities in which UNT teams will
pertbrm, etc.
Jointly sponsor events such as conferences or XX X f
symposia, intended to bring decision-makers
front targeted sectors into Denton.
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PHH FANTI?S COMPETITIVE ANALYSIS
RECOMMENDATIONS
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RECOMMENDATION k4:
Ensure that I enton's high quality, ample workforce remains a critical asset to existing businesses and a lure to new investment by providing training
opportunities and linking businesses with programs provided by the educational institutions,
EDUCATIONAL ASSETS Economic City Chamber
Recommendation H4 Development of of
Action Items Corporation Denton Commerce Comments
a. Denton should work with the institutions ot'higher XX X X The EDC would coordinate a task force to
education, including NCTC, to identify existing identify training needs, The task force
training programs and to project skills needs of $Ould include representation from UNT,
husiness for the foreseeable future, and structure rWIJ, NCTC, and DISD,
new programs that will produce future workers for
[hose skills. !
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h. Make arrangements with these institutions to XX 4~N , TWU, and NCTC already provide
develop customized training packages for newly- mized training, The EDC would
arri vcd businesses and existing employers. closely with these institutions to put f
• ce those training programs that have
dentified
c. (liven foreseeable cutbacks in government funding XX sk force would include public
and programs, Denton may want to target the workers when identifying and
workforcc employed in the public sector to ensure o in trainin
their continuing employability, ping g Iaograms,
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PHH FANTUS COMPETITIVE ANALYSIS,
RECOMMENDATIONS
EDUCATIONAL ASSETS Economic Cis'. Chamber 2A
Recommendation Ild Development of of
Action Items Corporation Denton Commerce Comments `
d. The Denton ISD has leadership that seems attuned X XX The Chamber of Commerce existing
to the need to establish an effective relationship Workforce Training Task Force will mat
with area employers, although potential clearly with the DISD to identlty training needs
exists for vocational education programs that go of Denton's future workforce.
beyond the current adopt-a-school approach.
The City and Chamber should devote more
energy to working with the Denton ISD on
programs that train high school students for
positions that local businesses will need to fill.
Models exist in a number of other jurisdictions.
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS s
REGULATORY PROCESS
Any community of Denton's size will suffer from some friction between municipal officials and regulatory agents on the one hand and the business
community on the other. To the extent that they are unavoidable, they should nevertheless be minimized and addressed through appropriate mechanisms.
Bused on our research, we believe that the problems that do exist are relatively minor and within reach of solution. The perceptions of the magnitude of the
problem tar exceed the actual severity. So long as there are problems and tensions in this arena, or the perception of such, Denton's economic development
initiatives will be negatively aft ctcd. y
RECOMMENDATION M5,
establish an effective mechanism for continuing dialogue between city officials and business leaders regarding the regulatory process.
REGULATORY PROCESS Economic City Chamber
Recommendatton #5 Development of of
Action Items Corporation Denton Commerce Comments
a. Utilize the existing Chamber Local Relations X XX Chamber Local Relations committee will
committee as a conduit for discussions or establish initiate discussions with top city and
a new forum that includes top city and business business officials, ±
officials, It is essential that the group meet at t-asl
once per month to ensure immpdinte response to
"hot butiun" issues.
0 b. Municipal officials must be inure effective in XX City Manager and Executive Director of
publicizing some of the reforms that have occurred Planning will meet to discuss possible
and that will occur. Uxamples: Ongoing efforts to costumer service training opportunities
establish a stronger customer service orientation and look at initiating creative and
have already been initiated and the platting process development
has been streamlined.
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PHH FANTUS COMPETITIVE ANALYSIS '
RECOMMENDATIONS
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REGULATORY PROCESS Economic City Chamber
Recommendation #5 Development of of
Action Items Corporation Denton Commerce Comments
c. Ensure that regulations/ordinances and the XX X The Planning Department will solicit
processes associated with their promulgation and input from area developers and begin
implementation are calculated to bring the kind of reviewing existing regulations and
development favored by the public. ordinances to idendf~ those regulations
Keep in place regulations/ordinances that serve that could be made more "user friendly."
the long-term interests of the community, such
as beautification measures.
d. Support development of a one-stop permitting This Individual would be introduced to
process and/or creation of an ombudsman position existing business owners through
to ensure cooperation with business. An newspaper stories, public appearances,
ombudsman can help businesses avoid interaction etc.
with city departments with which it has been
difficult for sonic businesspersons to work, This
will help keep Denton competitive with other'T'exas
communities.
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City Manager should appoint a temporary XX The City Manager will appoint a
• Ombudsman who will help business prospects temporary ombudsman,
obtain necessary permits and approvals.
Position would be replaced when WD XX The new EDC ombudsman promote open
Corporation established. dialogue with City staff to achieve the
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ombudsman goals.
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PHH FANTUS COMPETITIVE ANALYSIS 'VgmjiNo - Objv``
RECOMMENDATIONS ApN( prim
REGULATORY PROCESS Economic City Chamber u
Recommendation MS (Development of of
Action Items
Corporation Iholon Commerce Comments
i e. initiate discussion between City Manager and XX 0 The City Manager and Executive Director
Planning/7oning Director to clearly define goals of of Planning will determine specific goals
all city regulatory/development operations effecting to improve the development process,
the business community and ensure indoctrination Among those goals will be customer
of the customer orientation in all city regulatory service training for staff,
agency staff.
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS t.-~.~ c~.
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BUSINESS RETENTION 2
(treater emphasis should be placed on meeting the needs of existing businesses and creating conditions conducive to their expansion.
RECOMMENDATION a6;
Adopt an account management process, geared towards retention, that focuses on anticipating customer needs, addressing them as quickly as possible, and
encouraging expansion activities of existing businesses.
BUSINESS RETENTION
Economic City Chamber
Recommendation fib Development of of
Action Items Corporation Denton Commerce Comments
a. 'fhe EiX should assign "account managers" (one XX
or Iwo individuals should be adequate) for the sole The Account Manager would be a staff
position in the new EDC, focusing his/her j
purpose of meeting with the management of time on business retention and ex
existing businesses to understand their needs and pension,
concerns. The account managers must; The Account Manager would become the
"local expert" on existing business needs
He able to identify
y potential problems before and would work closely with City a
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they become real or magnified.
university officials to promote
Lobbyrto build cooperation and customer focus operation with Denton businesses,
among government agencies and other
• institutions (i.e., universities) with a stake in
helping business succeed in Denton.
b. The internal system of resources should be XX
continuously adapted and improved to ensure that After establishing the Account Manager
each resource is designed to most fully support the program, the EDC will continually review
account management effort. resources to improve program's ability to
• meet business needs, •
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS
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"CLUSTER" ANALYSIS 3
Position Denton in a way that is most meaningful to the businesses likely to consider locating In the city.
RECOMMENDA'T'ION 007:
Perform thorough analysis of manufacturing activity in Dallas, Tarrant, Collin and Denton counties to identify customers/suppliers of existing businesses
"cluster analysis."
"CLUSTER" ANALYSIS Economic City Chamber
Recommendation 07 Development of of
Action Items Corporation Denton Commerce Comments
a, Perform thorough analysis of manufacturing XX An outside firm such as Fantus, UNTs
activity in )alias, Tarrant, Collin and Denton Center for Economic Development (Bud
counties to identify customers/suppliers of existing Weinstein) or Insight Research could
businesses "cluster analysis," perform this cluster analysis.
b. Target media advertising once the economic }C{
development program has segmented the market devpublic elop A velop relations cfirm ampaign may be enlisted to
and determined the kinds of businesses that should a rubes camp once cluster
he recruited. analysis has been completed.
• c. 'target white-collar businesses for relocation to White-collar businesses will be included
Denton. In target market,
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS
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INDUSTRIAL SITESIINFRASTRUCTURE
Denton must have developed sites available to meet the needs of businesses. Currently the city not only a, %s spec buildings and fully-served lots but is not
even in a position to discuss the price of land with customers. Development of a business park, likely I-, r o western portion of Denton, would be one
measure that would enjoy near universal support in the community and would serve as nn important corn.-rstone for future economic development. If done
correctly, it would address the need for fully served sites.
Note, liven if Denton makes the above infrastructure enhancements, rapid development will not necessarily follow. The kinds of development Denton
seeks may still be several years away.
RECOMMENDATION M8;
Enhance the Denton product by, among other things, improving Infrastructure (especially availabl - sites and buildings) that will assist with the attraction of
new business.
INDUSTRIAL SITES Economic City Chamber
Recommendation N8 Development of of
Action Items Corporation Denton Commerce Commeats
a. Conceptualize a business park. perhaps based on x XX X City would Initiate site selection and
the STARTIiC vision, and identify an appropriate infrastructure Improvements discussions,
financing mechanism. as well as possible ftrnding,
b, Develop spec distribution center either as a stand- X XX X Discussions regarding a distribution
alone facility or as part of a business park, center will be included In Initial
discussions,
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EHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS
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INDUSTRIAL SITES Economic City Chamber
Recommendation #8 Development of of
Action Items Corporation Denton Commerce Comments
c, Obtain market prices for the available parcels or XX X X
land so as to be better able to market them.
Accomplish through:
Personal contacts with landowners by The EDC would establish on-going
prominent Dentonians, as part of a coordinated working relationships with industrial site
campaign, to make clear to them t he value (to property owners,
them and the City) of establishing a market for
their land.
Periodic socialibusiness events that could be EDC staff would invite property owners
sponsored by the Chamber and City to which in major social/business events.
the landowners could be invited.
d. Increase efforts to find a purchaser/occupant for the XX X X The EDC, would work closely with
Texas Instruments facility. Trammell Crow and Bingswanger to
determine additional marking
possibilities. EDC would incirde the TI
• building in appropriate marketing
campaigns,
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS a
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RECOMMENDA'r1ON #9,
Other infrastructure improvements are necessary to better position Denton for growth, i.e„ the roads near Denton Municipal Airport must be increased in
number and'or improved.
INFRASTRUCTURF Economic City Chamber
Recommendation #9 Development of of
Action Items Corporation Denton Commerce Comments i
a. A new effort should be made with the Texas X XX X
The Deputy City Manager and
1 fighway Dept to add a new entrance/exit ramp on Engineering Department will coordinate a
1-35 near the Municipal Airport, new campaign to improve access to the
airport which will include involvement of
Denton businesses,
b. To alleviate road congestion that may occur from X XX City will develop inventory of streets
establishment ornew businesses or expansion of needing improvement along the 1.35I?
existing ones along the I.35E corridor, Denton corridor and look at possible funding
planners should begin considering road sources.
improvements and additions that may be necessary,
such as repair of Teasley Lanc.
• c. To support financing for infrastructure X X XX The Chamber will begin discussion with
improvements, Denton should actively consider a the various organizations. I.egisiative
plan that would require the City's large not-for- changes may be required.
profit entities to make payment:; in lieu oftaxes
rpeciGcally dedicated to economic development.
d. Strong consideration should be given to the X XX X The City will lead discussions and further •
recommendations of the Visioning Transportation research alternate transportation modes,
City, such as development of alternate i,e., mass transit,
transportation modes.
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aPHH F'ANTUS COMPETITIVE, ANALYSIS o
RECOMMENDATIONS
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AIR QUALITY
RECOMMENDATION HIO:
Because Denton is pan of the four-county non-attainment area for air quality, municipal officials, in concert with the business community and other cities in
the non-attainment area, should work to limit the capacity for that designation to harm economic development efforts,
AIR QUALITY Economic City Chamber
Recommendation #10 Development of of
Action Items Corporation Denton Commerce Comments
Lt. A strong education program should be launched in XX X The FDC would coordinate the campaign,
coordination with North Texas Air Coalition to along with the Chamber's Benton Clean
make Benton area residents aware of the adverse Air Coalition.
economic impacts and health hazards resulting
from continuing status as a Moderate Non.
Attainment Area or becoming a Severe area.
h. Fxpunded mass transit offerings can be considered. XX X The City MA lead discussions and further
fhe 3TARTFC vision included construction ofa research alternate transportation modes,
monorail and, whether or not the business park i.e., mass transit.
• becomes a reality, such a transportation asset could
be developed.-for example as a substitute for more
access roads to the Municipal ,Airport,
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PHH FANTUS COMPETITIVE ANALYSIS
RECOMMENDATIONS
METROPLEX RELATIONSHIP p
Efforts to lure businesses from Dallas to Denton are not in the long-term best interests of the City. The fact is that the decline of the major city in any region
usually precedes a difficult-to-reverse loss of attractiveness of the region as a whole; Detroit is a classic study of this phenomenon.
RECOMMENDATION 01 1:
Increase Denton's visibility within the Metroplex and cement ties with the Dallas Chamber of Commerce.
MET'ROPLEX RELATIONSHIP Economic City Chamber
Recommendation NI I Development of of
Action Items Corporation Denton Commerce' Comments
a. Advise the Dallas Chamber when Dallas area XX X
EDC will develop cooperative I
businesses contact Denton regarding relocation, relationship with Dallas Chamber and
apprise them, whenever possible, of
potential relocations.
h. Work with Dallas Chamber to identify businesses XX FE
ll meet with the Da
llas Chamber
planning to leave Dallas that might be persuaded to -going basis to determine
remain in the Metroplex by moving to Denton, Denton relocations, j
c. Become involved in Dallas and national real estate XX EDC would expand on current
organizations involved in commercial leasing, involvement with Dallas area real estate
organizations,
d. Encourage local public officiaWcilimns/business XX X X EDC will enlist inclividuais from all
leaders to actively seek appointment to appropriate sectors and encourage metroplex
policy-making or representative bodies in the involvement, i.e. North Texas
Dallas/Fort Worth area. Commission and chamber memberships,
XX a Leadership role X-Participation
February I, 199x' 17
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PHH FANTUS COMPETITIVE ANALYSIS C
RECOMMENDATIONS
METROPLEX RELATIONSHIP Economic City Chamber ~V[
Recommendation #1 1 Development of of
Action Items Corporation Denton Commerce
Comments
e. Make effective presentations, in-person and XX X
through written mat-rims, to the Dallas Chamber involving x L~ will
the frcoordinate coordinate ° board ' fonun
(hat highlight Denton's brand image and distinguish and sniff, as
the City from other Metropiex communities. men! as other interested community
members,
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February 1, 1995
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RECOMMENDATIONS 0062
BRAND MANAGEMENT
Brand management is the process of refining product features to meet market demand, communicating the right product benefits to prospects most likely to
acquire the product, and then giving these customers a reason to continue to purchase it. Powerful brand names (Coca-Cola, McDonald's) are associated with
products that provide strong benefits to customers, help to generate Interest (attraction) and if properly managed, sustain loyalty (retention).
Brand image is a measure of customers' perception of a product. Area Image is one of the first factors considered in the location decision-making process.
An area with a negative or neutral image is less likely to be included in an initial search than a competitor location with a positive image.
RECOMMENDATION M12i
Establish a brand image for Denton, at least within Texas, as being a stand-alone university community with a hometown atmosphere that is close enough to
Dallas to offer businesses the critical advantages inherent in being In the Metroplex Region.
i
Note- The mere presence of the institutions of higher education is critical to any effort to establish the kind of brand image proposed. However, Denton
should not place undue reliance on this unique feature. Potential investors will most often be just as interested in local wage rates, for ex;unple, as university
resources,
BRAND MANAGEMENT Economic City Chamber E
:ltcommendation 012 Development of of
Action Items Corporation Denton Commerce Comments
a. To compete successfully against other cities inside XX X X Coordinate meeting with community
• and outside of'I'exas, Denton must define, among leaders (possibly Vision members) to
other things: clearly define what Denton's Image or
Whal it wants to be brand should be.
Who its primary customers are
What will motivate these customers
Meetings would focus on some of the
• positive Image-enhancing ideas conceived
by several of the Visioning task fonts,
such as the environmeaW Model City,
establishment of a River Trail/Oreenbell
project, etc.
XX - Leadership role X=Participation
February I, 190 19
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PHH FANTUS COMPETITIVE ANALY` S 1m;r1^No. _
RECOMMENDATIONS
BRAND MANAGEMENT Economic City Chamber
Recommendation #12 Development of of
Action Items Corporation Denton Commerce Comwents
b. Begin developing a revised incentives package that XX X DISD The City Economic Development Office
is consistent with the "brand" image of the City and and Finance Department would develop
be meaningful to the kinds of businesses Dc,ttcn X DENTON and propose new incentive programs and
decides to target. It will be critical to include COUNTY amendments to existing incentive policies
training programs and perhaps one or two items to be consistent with the new "brand"
unique to Denton. image, The City will call a meeting of the
Tax Abatement Joint Committee to
determine whether changes to the existing
policy will be necessary.
C, Begin positioning Denton to benefit from NAFTA XX EDC would contract with PR firm to
related trade through a selective advertising develop marketing campaign targeting
campaign, NAFTA-related industry In Mexico and
Canada.
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February I, 1995 20
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CITY of DENTON, TEXAS MUNICIPAL BULLDING # 2f5 E. Mck'INNEY * DENTON, TEXAS 76201
(817) 5668200 DFW M;.TRO 4342529
MEMORANDUM
DATE: February 13, 1995
TO: Mayor and Members of the City Council
FROM: Deily McKean, Executive Director
Municipal Services/Economic Development
SUBJECT: PNH Fantus Competitive Analysis Study
We were unable to reach Carlton Schwab, Pill] Fantus consultant, last week to determine the status of the
final Fantus report. I was able to get through to Bruce Levine today at their Chicago office regarding the
documentation for the City Council meeting tomorrow night, Bruce informed me that he had contacted the
Chamber last week advising them that a computer virus had "dumped" a large amount of their documentation
and that they were working around the clock to recreate it. Unfortunately, they did not have it completed in
time to go out in your agenda back-up on Friday,
Bruce was very apologetic. Ile did lax the latest versions early this aftemoon, I have attached copies of the
final report as well as the November preliminary report, When you review the report, you will notice
references to "facing pages." Since we have photocopied the report, the "facing pages" follow the referent
page.
•
I am also including a copy of the project's original request : it proposal as well as PHH Famus' response and
scope of work document.
Once again, Fantus is most apologetic for any inconvenience to Cily Council Members. Please call me at
® %6-830 if you have any questions regarding this material. • •
tIetty McKean, 'xecutive Director
Municipal serVices1[{Conomlc Development
" bedicared to Qualilr Service"
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TABLE OF CONTENTS
17
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11 BACKGROUND
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PROJECT OBJECTIVES
The Denton Chamber of Commerce and the City of Denton retained PHH Fantus Consulting to evaluate
Denton's competitive position for attracting and retaining businesses; to critique the City's marketing and
retention programs; and to identify possible strategies for enhancing Demon's efforts.
in
Our specific mission in this project iias included;
• Identification of key factors in the typical corporate location decision-making process
• Analysis of Denton's existing situation, review of baseline strengths and weaknesses,
and identification of economic development strategic opportunities and threats
Benchmarking of Denton's critical success factors for economic development and
comparison to standards in key competitor locations
0 Specific assessment of Denton's existing marketing and retention programs
• Identification of possible economic development strategies for Denton and related
programmatic and operational initiatives
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Januery 1995
CONFIDENTIAL
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Background,. S
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PROJECT APPROACH
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• Utilizing information gained through a series of field interviews in the Denton area,
from a variety of published sources, and from PHH Fantus Consulting's proprietary
databases, as well as a review of overall economic and employment trends at the
national and local levels, we completed Worksteps One and Two of the project and
lip presented our findings at a briefing held in Denton on October 21, 1994. Specifically,
we Identified the key factors in the typical corporate location decision-making
process, described Denton's Critical Success Factors (CSFs), analyzed Denton's
strengths, weaknesses, strategic opportunities, and strategic threats, and compared
Denton to key competitor locations.
y.
A report containing the Key Findings covered in that briefing was submitted to the '
Chamber in November 1994
•
• In late November 1994, PHH Fantus Consulting presented a discussion document f
that addressed Workstep Three of the PHH Fantus Consulting proposal, i
Specifically, we critiqued Denton's current economic development program, and
utilizing the data generated during the first two Worksteps of the project, preliminarily
® suggested viable strategies for addressing some of Denton's weaknesses and •
strategic threats as well as taking advantage of opportunities and strengths, A
similar presentation was made to a public meeting in early December,
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Janumy 106
cowmiNnAL
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PROJECT APPROACH (CONT'D)
• This Final Report, the findings of which were presented at a January briefing, builds
on the Wort<step Three briefing and provides more detailed recommendations,
addressing earlier points raised during that briefing, the public meeting, and the
January briefing:
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Denton
January IN5
CONFIDENTIAL
6 PHH l+aatura comrdting
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REVIEW OF STRENGTHS, WEAKNESSES, STRATEGIC OPPORTUNITIES, AND
STRATEGIC THREATS
In the Workstep I and II Report, PHH Fantus Consulting identified the strengths and weaknesses of
Denton from an economic development standpoint, As a part of that analysis, we also identified strategic
opportunities for future development efforts, as well as threats which, if left unaddressed, might have a
negative impact on Denton's economic future.
Below we summarize the key points Identified during Worksteps I and II, which must be considered in
analyzing existing economic development efforts and determining how to move forward.
STRENGTHS AND STRATEGIC OPPORTUNffIE5
• Attributes of a university city with a hometown atmosphere and access to resources
of the Metroplex
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• The presence of major universities
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• • Favorable labor market conditions, especially a plentiful high-quality workforce
• Relatively low office labor costs and a location in a hotspot for white-collar office
h;
location activity
Excellent transportation access, especially highways and air
b • Central location for participation fn NAFTA-related trade e
• Abundant available land
January 1095
CCWIOENTIAL
7 Prlll Fanum Co»arlling
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REVIEW OF STRENGTHS, WEAKNESSES, STRATEGIC OPPORTUNITIES, AND
STRATEGIC THREATS (CONT'D)
• The ability to dictate the course of future growth because of, among other things,
r Denton's distance from Dallas
• The VISIONING process as a foundation for a collaborative community effort to
define Denton's future
F-
• A number of businesses satisfied with the investment environment In Denton
AEAKNESSES AND STRATEGIC THREATI
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Lack of fully-served parcels of land, spec buildings, and prices for available lots
• tack of image and business awareness within and outside the Metroplex
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• Indecision about the relative merits of tying Denton's destiny to its relatio,iship with
r Dallas
• Economic development program that is not structured to compete with higher-
w powered competitor locations
° • Northward creep of the Metroplex that may restrict Denton's ability to dictate its own •
future
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January 1995
COWMENiiAL R
8 PHH Faniue Consulting
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REVIEW OF STRENGTHS, WEAKNESSES, STRATEGIC OPPORTUNITIES, AND
STRATEGIC THREATS (CONT'D)
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. Available infill between Denton and Dallas that may delay the growth desired by
some among Denton's business leadership
• Need for improved relations between some elements of the business community and
City government
• Local manufacturing wage costs that do not provide a marketable advantage
• Location outside the most active national search area for manufacturing locations
i ANY CONSIDERATION OF DENTON'S ECONOMIC DEVELOPMENT PROGRAM
AND FUTURE STRATEGIES MUST BE UNDERTAKEN IN LIGHT OF THE ABOVE
o FINDINGS
1) Ion
January 1995
CONFIDENTIAL
9 PHH FanlusComsulting
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DENTON HAS MANY STRENGTHS ON WHICH TO BUILD,,,. BUT MUST RECOGNIZE i
THE NEED TO ADDRESS SHORTCOMINGS AND THREATS AND TAKE A REALISTIC I
APPROACH TO GROWING THE CITY
+ While Denton will not be able to eliminate all weaknesses or strategic threats, the
City's economic development effort must realistically account for them. Fortunately `
for Denton, it has many strengths that will help in taking advantage of opportunities i
that now exist or should exist in the future. In total, the City presents a strong
economic development profile for targeted industries/businesses, one that compares '
favorably with likely competitors.
I
• Denton has managed to prosper and grow to the present day in a manner seemingly
satisfactory to most residents, having been spared major crises that could affect the ;
community's quality of life 3
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• • Denton's civic and business leaders have recognized that their City is at a I
crossroads: it can work to control its own destiny from an economic development
! standpoint or be overrun, sooner or later, by commercial and residential development
heading north from Dallas
A
• • While a consensus seems to be developing around the position that Denton may be •
an "underperformer" from an economic development standpoint, given its assets,
eOTM
Januaiy 1995
CONFIDENTIAL
'•.ID !'HH FWAUS cotlnrNn=
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DENTON HAS MANY STRENGTHS ON WHICH TO BUILD..&BUT MUST RECOGNIZE
THE NEED TO ADDRESS SHORTCOMINGS AND THREATS AND TAKE A REALISTIC
APPROACH TO GROWING THE CITY (CONT'D)
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even the City's greatest boosters must r
o ecognlze that there are limits to what any
economic development effort ca i accomplish. For example, with rare exceptions,
Denton Is unlikely to be a leading candidate for corporate headquarters projects; on
the other hand, certain functional units of the same corporations may be prime
attraction candidates.
• The cooperative effort to chart a new economic development courage, in which PHH
Fantus Consulting is playing a part, Is a solid first step in developing an
understanding of Denton's current situation and planning for the future
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January 1995
COWIDFNTM
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11, STRATEGIC OECOMMENDATtONS
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January 1995
CONFIDENTIAL
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12 P11H FuduT Canwiting
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SIrMe& Recommendations,..
OUR RECOMMENDED STRATEGIES CAN SERVE AS THE BASIS FOR THE ONGOING
BRAND-BUILDING PROCESS THAT MUST OCCUR
• This Report has been structured to provide the Denton community, and especially its
business and public sector leaders Involved in economic development, with a
f)
.-1 foundation for future efforts
• It is not a "blueprint" in the sense that it is meant to be followed slavishly; rather, It
should lead to well-conceived, concrete steps that will solidify Denton's future
e Specifically, in this Report, we will;
Describe the brand-building process and explain its relevance for Denton
Critique the current economic development program and make
recommendations for enhancing it
Highlight key questions which Denton's leaders must strive to answer In
• « the course of future economic development efforts
Provide specific strategies for building on Denton's strengths and
r addressing particular weaknesses and issues
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January 1995
CDWIDENTIAL
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PHH raMus Cotwdting
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M-Strale* Recommendations.,.
OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINTS;
• Revamp the economic development program through establishment of a new
organizational structure, the raising and expenditure of more money, setting
appropriate expectations and managing to them, and a focus on brand-building
in
r' Establish a brand image for Denton, at least within Texas, as being a stand-alone,
university community with a hometown atmosphere that is close enough to Dallas to
offer businesses the critical advantages inherent in being in the Metroplex Region
. Adopt an account management process, geared towards retention, that focuses on a
anticipating customer needs, addressing them as quickly as possible, and
encouraging expansion activities of existing businesses
Metter leverage of the assets that most distinguish Denton from competitor locations
--its institutions of higher education and its university city setting and environment
C-I
'ZI Enhance the Denton product by, among other things, improving infrastructure,
especially avaJable sites and buildings, that will assist with the attraction of new
business, and developing an ongoing process by which Denton's business and public
sector leaders can work in a coordinated fashion to advance the interests of the }
whole community rather than allowing personality conflicts and other counter-
productive phenomena to interfere with appropriate growth •
o• Donlon
Jammy 1995
CANF7DFMTIN.
14 PHH Faetus Consulting
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OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINTS
(CONT'D),
Ensure that Canton's high quality, ample workforce remaiindisn tiical ssset tounities
existing businesses and a lure to new investment by providing
and linking businesses with programs provided by the educational institutions
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Janlw y 1995
COWDENTOL
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10LMr;Wsgk RecommendatWs...
1. DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO
MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH
• Denton's current economic development program, a coordinated effort between the
Chamber and the City, has served Denton well, particularly in performing traditional
functions such as hosting prospect visits and attending trade shows
• Certain aspects of the current program are not conducive to success the twenty- i
voting member Board, with additional ex-officio members, is unnecessarily large
Communication between professional economic development staff and the
Board has not been especially strong
- Adequate funding for a community of Denton's size has been unavaiiab'a
to the program
• With the economic development landscape dramatically changing, a more focused,
well-funded, and strategic effort is required to maintain a solid, desirable pace of 1
• development in the face of strong competition on a regional, national, and even
international basis
4
• From all indications, the majority of the community has come to share the view that a
strong economic development program is required if the City is to maintain or
a improve its quality of life, although disagreement exists as to the exact form
economic development should take and the speed with which it should occur. The •
conditions may be ripe for Denton to put in place an enhanced program but a
Uenton
January 1995
cONF OF.NIIAL
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...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO
MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH
(CONT'D)
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significant portion of the community would probably be satisfied with minor changes.
To accomplish Denton's goals, certain principles should be established as the foundation for this effort; 3
• Efforts to lure businesses from Dallas to Denton are not in the long-term beat
interests of the City. The fact is that the decline of the major city in any region usually
precedes a difficult-to-reverse loss of attractiveness of the region as a whole; Detroit,
with its otherwise attractive suburbs, provides a classic study of this phenomenon.
• Greater emphasis should be placed on meeting the needs of existing businesses and 3 1
creating conditions conducive to their expansion. In the context of the brand
• a management approach to be discussed later, an account management system must
be put into place,
71 1
• Inclusion of all elements of the community in the economic development process will
maximize the chances for its success
A • Attendance at trade shows and traditional advertising should have a limited phn+ ,e in •
Denton's overall economic development campaign
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IJenton
Jarwary 1995
CONFIDENTIAL
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" 17 PHII Fantrs Consvitius
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6b et k Recommendations...
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...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO
MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONGTERM GROWTH
(CONrD)
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Key Question: In order to address Denton's key weaknesses and strategic threats, and best position the
City for strong growth, how should Denton approach economic development?
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January 1995
COWIWNTtAL
18 PHH F.alus Coewltins
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DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE
LONG-TERM ECONOMIC DEVELOPMENT SUCCESS
• Brand management is the process of refining product features to meet ma~het °
demand. communicating the right product benefits to prospects most likely to acquire
the f,roiuct, and then giving these customers a reason to contirue to purchase It.
Powerful brand names (e.g. Coca-Cola, Mcbonald's) are associated with products
that provide strong benefits to customers, help to generate Interest (attraction) and.. f
properly managed, sustain loyalty (retention),
J
- Brand interest is generated through customer Identification with the
benefits a product, such as the Silicon Valley, provides
Brand loyalty •esulls from customers Identifying themselves with a
particular brand
A product does not become a'brand" until It is successful In attracting
customers and keeping them over the long term
• Denton should adopt the strAegles of orand management'or Ks own use, which will
• require a shifl of perspective and building on some components of the existing
economic development progr.mn
B •
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January 1*5
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SUole !e R;>commendalions i
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DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE
LONG-TERM! ECONOMIC DEVELOPMENT SUCCESS(CONT'D)
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• To compete successfully against other cities inside and outside of Texas, Denton
must define, among other things,
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What it wants to be
Who its primary customers are
What will motivate these customers
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• The site location marketplace has hundreds of organizations (suppliers) competing
primarily on price for a relatively small universe of customers
• By treating itself as a product and brand to be managed, Denton can begin to build a
differentiated position that helps to ensure the flow of capital investment into 1he
• community. This approach provides a framework around which Denton can structure
its economic development activities and defines a process for anticipating and
meeting customer needs and strengthening the product
• Differentiating products from each other is the way to gain competitive advantage in
o the attraction of companies q •
Differentiation is the process of identifying product benefits, competitive strengths,
and needs of market segments and using this information to distinguish a produrt
from its competition
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Oimlon
January 1995
20 PIlH Fantrs ConsuNing
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DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE
LONG-TERM ECONOMIC DEVELOPMENT SUCCESS(CONT'D)
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Both development and implementation of the differentiation strategy must be
carefully managed or the effort will NII
Positioning must be meaningful to the customers you are trying to attract N
All key public and private sector entities must support the message so that
there is no conflicting message sent out to the rest of the world
There must be a consistent effort dedicated to meeting customer needs
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January 7995
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CONFIOEN71Al. „
21 PHH Fantus ComrNJng
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DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING
THE BRAND MANAGEMENT PROCESS i
• The model of private/public cooperation that now exists is a slid foundation for futur r
efforts in that it recognizes the need for buy-in, and the potential value of l
contributions, from different segments of the community. However, the current €
structure is too unwieldy and the roles loo undefined to achieve the,-,kwimurn I
positive results for Denton
J
,
+ PHH Fantus Consulting recommends that Denton consider adoptiig the economic i
development sales tax and raising the local sales tax one•hal' cent, as is allowed
under law, and to earmark the revenue ganeraled strictly for economic development
activity such as attracting new business assisting expanding enterprises, and
creating new job opp(Aunities
• Under 4A of the Development Corporation Act, Denton could impose the lax, after,
receiving voler approval, for a wide range of possible activities. Possl'We 1
approaches, already tried by other Texas communities, include purchasing land,
building, and equipment and paying prirxN pal and interest on debt, One likely use of
available funds by Denton would be for development of a busiress park.
o •
J
January 1095
CONW111IAI.
u F'rlri F •ol •x Caawu hill g
• ID -
•
0
s
^Iraleplc Rarnmmendelions, '
DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING
THE BRAND MANAGEMENT PROCESS (CONT'D)
• Significantly, by virtue of adopting the economic development sales tax, Denton
could gain access to the Texas Leverage Fund, which provides for cities to use
Texas' credit rating and personnel on behalf of their respective projects {
• In accordance with 4A, a five-person board would be established to manage the
revenues, and act as the new Economic Development Corporation, The professional ;
staff would report directly to this board. The board would set the broad policy and
goals for the Economic Development Corporation but would otherwise
allow the economic development professionals wide discretion in implementing policy
and programs.
s
• Although use of the sales tax proceeds would result in heavy public funding of the E
economic development effort, it would not preclude financial participation by the
private sector. Ideally, initial public investment could be used to attract supplemental
private funds. '
If raising the sales tax is not considered feasible, other alternatives exist. There are a number of models
that Denton can look to in deciding the best option for itself. On the facer page, we have briefly described
three communities' approaches, each of which can have merit depending on the specific situation and
needs of a city. The key for Denton, regardless of the structure chosen, is to have a better-defined, better- 4
® funded version of the current structure, that merges the interests and strengths of the public and private
sectors.
oenlcn
January 1095
COW9* IAL i
21 PH11 Fantus Consulting
•
C)
a
•
Representative Economic Development
Organizational Structures
i
Paducah, Kentucky: The Economic Development Council has its own board and funding stream
but is of irially a committee of the local Chamber of Commerce. The Council receives funding
" I
from both the public and private sectors and has public and private representatives on the board. r
The Council purchases administrative services From the Chamber, and the Chamber provides
secretarial and accounting services.
3
I
Aurora, Illinois: The city established a 9-member commission which is part of city government
but a form of public/private partnership, receiving funding from both sectors. The commissioners {
are appointed by the Mayor but a certain number of positions must be filed from a list submitted by
• the Chamber of Commerce. The city and Chamber of Commerce each agreed to provide 50% of the
commission funding.
i?.ueene/Sarin,ptield, Oregon: A free-standing not-for-profit corporation was established drawing x,
• funding and board membership from both the public and private sectors, •
• o
•
•
•
ra
~J
E
81111 k R"Ommendatws...
f
DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING
THE BRAND MANAGEMENT PROCESS (CONT'D) 1
• In thinking about the structure, attention must also be paid to the necessary budget for the s
Economic Development Corporation. Based on surveys done by PHH Fantus consulting and
other organizations in recent years, certain guidelines have developed. Economic development
organizations serving communities of less than 75,000
ave a budget of t
$167,000 while those serving communities of 75,000 to 30p t000avpeole e an haverage
$371,000. On a per capita basis, a community of Denton's approximate size should havedgete of
economic development expenditures of a
pproximatety $2800 per 1,000 residents
• On the facer page, we have listed, for purposes of comparison, the most recently available
budgets of Texas communities that are comparable to Denton in terms of size, There are many
variables that affect how much a city can spend but it Is worth noting that all of these competitors
are spending more than Denton, ;
IJ
UI
ul
m
c[hrAcn
January 1995
CONFIDENTIAL
c:>
i •b
24 P1JF1 Fames CorunHinP
...~..'~.•t"". 1 rte. rlr:ailli~W°I+'r~,..~, N,..„..
• , , ru tf ytE 21 d ;?11 Fk1 4, v'p >
r
~y
/0A
t t. .
•
•
•
Sample Texas Community
Economic Development
Organizations (from 1994 study by Tyler Economic Development Council
i
Pon. Served Annual E.D. Perccn( Public E D Sales Tax I
D. Or
.
Oner, Budget FMn
ialvestonED 59,000 $207,000 0,0% No
.ongview FD 73,000 $772,427 100% 1/4
) 85 000 $700,000 1000/0 No
AcAlle,n L
i
pan Angelo 85,000 $230,000 37% No
Chamber
i'emple ED 50,000 $582,000 100% No
•
Victoria ED 77,000 $215,000 40.2% No
I
0
•
GIN
•
•
5
Slrofcilic RccammcnJations...
WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC
DEVELOPMENT CORPORAli ON WOULD PLAY MULTIPLE ROLES:
• Leading the effort to develop an effective economic development strategy
Focusing on keeping existing business in Denton
Adopting the brand management process, defining market needs and critical
issues and addressing tham
- Determining the level of funding needed to support the economic development
effort and securing the funding
• Coordinating enhancement of the Denton product to meet the needs of
businesses. Given the current situation, this could Involve.
Conceptualizing a business park, perhaps based on the STARTEC vision, and
• identifying an appropriate financing mechanism
- Working with the Texas Highway Department to add a new entrance/exit ramp on
135E near the Municipal Airport
- Supporting development of a one-stop permitting process and/or creation of an
ombudsman position to ensure cooperation with business
o - Developing an appropriate incentives strategy that will help meet Denton's needs °
and be meaningful to the kinds of businesses Renton decides to target
January 1095
CONFIDENTIAL
25 lPffff Fa mfus Consulting
•
Q
•
•
WsirategicRecommematk-As
WITHIN THE BRAND MANAGEMENT FRAMEWORK THE ECONOMIC '
DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES (CONT$D)
• Involving top business executives and government offk;ials In the brand.
building process
- identifying important issues businesses face and exploring ways the Economic
Development Corporation can help to address them E
Working with business to define and prioritize infrastructure, regulatory, and other
needs
• Building a differentiated position In the marketplace
Positioning Denton in a way that is most meaningful to the businesses likely to
consider locating in the City
Developing a promotion strategy that targets specific market..
. Building an ongoing strategic planning process within the Economic
• Development Corporation that anticipates and analyzes developments that
effect Denton's competitive position
•
•
Armary 1995
COWMLNTIAI.
26 PHIf Fentus CooWtint
s e
•
•
•
}
.V I
I,II I
s'ra,10 HecmmondMlons f
r
2. THE ECONOMIC DEVELOPMENT CORPORATION SHOULD ADOPT AN ACCOUNT
MANAGEMENT SYSTEM TO HELP IT ANTICIPATE AND ADDRESS BUSINESS
_L.
NEEDS, AND ASSIST IN THE RETENTION OF COMPANIES ; 1
V~
r• The Economic Development Corporation must estabilsh that it can be a valuable
resource for businesses
Must be able to identify potential problems before they become real or magnified
Must lobby to build cooperation and customer focus among government agencies
and other institutions (e,g, universities) with a stake in helping business succeed
in Denton
- Must provide information that is meaningful to customers. F or example, for
businesses with export potential, the Economic Development Corporation can
1 provide information gathered from various sources on upcoming trade fairs,
exhibitions, trade missions, and other international business activities.
•
• The Economic Development Corporation should assign "account managers" to
businesses for the sole purpose of meeting with their management to understand
needs and concerns
- Account managers would work through any problems with their respective
o accounts, coordinating and assembling the necessary resources to achieve
resolution •
Utilizing an account manager approach does not require a large staff one or two
individuals would be an adequate force for Denton
V) I
on-
Pe nt
Janoary1995
CONWNTIAL
27 PII11 Bantus consulting
O
0
a
•
1
Stu,e H~ i~aomnae3Mon~.,.
2. THE ECONOMIC DEVELOPMENT CORPORATION SHOULD ADOPT AN ACCOUNT
MANAGEMENT SYSTEM TO HELP IT ANTICIPATE AND ADDRESS BUSINESS
NEEDS, AND ASSIST IN THE RETENTION OF COMPANIES (CONTD)
In acdition to account managers, an ombudsman or similar position should be
established with responsibility for serving as intermediary between Denton
municipal regulatory un'ts and prospective Investors (see later discussion)
._s
The internal system of resources should be continuously adapted and Improved to
ensure that each rescurce is designed to rr.ost fully support the account
management effort
Y.
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•
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i7eMon ~
Jamiff 1905
OWCURK
m
1 a
4b PM rwilm CONW1102
71
•
p
•
•
I~
Shalegin Recommendations...
THE ECONOMIC DEVELOPMENT PROGRAM MUST ENHANCE THE DENTON
PRODUCT BY, AT A MINIMUM, ADDRESSING SEVERAL CRITICAL ISSUES:
b
A
,n . Devi , ing a brand image
• Strengthening connections between Denton and Its universities
• improving buslneWpublic sector relations and the regulatory environment
• Enhancing existing infrastructure
• Maintaining a quality workforce
~a
VI
• U
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(T {M11Qn
January1995
CONffIENAAL
.si
29 PFIH Fantus Coruntfing
•
G~
•
C]
r I
Sbafa9ic f2ecommendallons. j7
t
i
w
3. THE STRENGTH OF DENTON'S BRAND IMAGE WILL BE CRITICAL TO THE
EFFORT TO ATTRACT INVESTMENT AND RETAIN EXISTING BUSINESSES
!
At the present time, Denton has virtually no "brand image." If the City is known for
anything outside the Metropiex, it is the excellent music program at UNT. Within the
Metroplex, Denton also has a low recognition factor,
• Brand image is a measure of customers' perception of a product and the product's
actual features, both of which must be managed }
Companies often drop locations from consideration solely on the basis of image
and they remain in locations that they perceive as helping them compete
Businesses will generally more critically examine locations with poor or neutral }
images before making investment decisions the prevailing wisdom is that image
generally refle .ts some reality about an area, even if not the entire story !
• Area image ir. one of the first factors considered in tho location decision-making
process - an area with a negative or neutral image is less likely to be included in
an initial search than competitor locations with a
positive image
Image is based on both controllable and uncontrollable factors, including;
noteworthy business success stories (controllable) l
• successful civic Initiatives (controllable) •
climate and geography (uncontrollable)
Donlon
T
January 1995
COW10ENrIAI
30 PH11 Fantus Conxumug
t
•
_ a
•
•
w
a
P strategic Feoommandatbns .
CONTROLLING PERCEPTIONS OF DENTON IS CRITICAL TO THE ATTRACTION AND {
RETENTION OF INVESTMENT
. The underlying product must match the Image being marketed
,n
. Denton will have to make "extemal" Improvements, which relate to how the city is
presented to inves fors
Denton will also have to make "internal" improvements, which enhance the actual
product
Key Cuestlons: What should Denton's brand Image be?
How should that image be established in the minds of customers?
What internal improvements will be necessary to make Image and reality consistent?
0
F-
.r
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f1,
•
U
e Denton
" January 1995
CONFOENTIAI,
sn
]I i'IIFI Flnlus Conaukln;
r a,: S n,a11. Li7tRr4i v~~Y',+ a, r ti.
•
ca
•
•
{
® Aralegic Recommendations.
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES--BRAND IMAGE
ENHANCEMENT
• Define Denton for the market as the last remaining community within the
Metroplex capable of maintaining an Identity separate from Dallas
- That identity includes a hometown atmosphere, more rural than suburban in
nature, with the critical added features of major universities and all of their
offerings, easy access to all of the Metroplex's resources, and an overall high
quality of life over which the City is vigilant
- This definitional process is an ongoing, time consuming one, although the process
can start almost immediately
{
• increase Denton's visibility within the Metroplex
The Economic Development Corporation must increase its involvement in Dallas
and national real estate organizations involved In commercial leasing
t - Encourage local public officialslcitizenstbusiness leaders to actively seek
appointment to appropriate policy-making or representative bodies in the
• i Dallas/Fort Worth area A
Make effective presentations, in-person and through written materials, to the
Dallas Chamber that highlight Denton's brand image and distinguish the City, in l
the minds of key Chamber staff, from other Metroplex communities
This effort should involve the Economic Development Corporation's Board and d
• staff, as well as other interested community members, and can begin even before •
I the new structure is in place
Explore ways in which UNT's School of Community Services' Involvement in
Metroplex issues can be used to showcase Denton
DeWn
January 1996
CONFIDENTIAL
32 P1111 8sntus consuming
Wes,
• 0
0
► s+
•
•
State la Recwnmeamions
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES--BRAND IMAGE
ENHANCEMENT (CONT"D)
• Increase Denton's overall visibility
Leverage UNT's intercollegiale sports participation in the NCAA through an
infomercial that could be produced and shown during NCAA broadcasts, targeted
advertising In communities In which UNT teams will perform, etc.
Target media advertising once the economic development program has f
segmented the market and determined the kinds of businesses that should be I
recruited
- Highlight the universities and their strengths, through events like a national music
festival at UNT
Build on some of the positive Image-enhancing Ideas conceived by several of the
VISIONING task forces, such as the environmental Model City, establishment of a
River Trail/Green belt project, etc.
•
I
I
• I •
Tlenlon
Jarwary 1986
t DWDENTIAL
13 P1111 Fla 0 msukin=
L pp
•
•
•
s
)
Sr(eteflic Recommendations f
I
4. LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH
DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR
i
PROFILES
[a
m I
The presence of two major universities, UNT and TWU, as well as the North Texas
Research Institute (NTRI) and North Central Texas College, is a unique attribute of
Denton's that can be used to create economic development opportunities, serve as a
lure to potential residents, and help solidity the City's brand image. The Economic
Development Corporation can also help enhance the respective images of the f
universities.
A number of communities in the U.S., ranging from Tampa to Provo, have been
particularly effective in working with local universities to significantly expand the
number of jobs and businesses, while also benefitting the universities j
• • Companies often prefer to locate in university towns for a number of business-related
reasons;
For technology-intensive companies, universities' technological resources such as
research, equipment, and labs, can be all-important. This is especially true for
start-ups and smaller companies that cannot afford too many initial expenses.
Lt. 1
• - College libraries can provide reseach services and information on a wide range o
r industries, and professors frequently offer services as consultants A
The educated labor force can benefit businesses in many ways, New graduates
C_1
Denton
January 1995
CONFIDENTIAL
)4 !'1111 FeMus Consulting
It.
• 0
•
•
•
.;s
51ra1 Ic Rocomrnendations
t
LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH
DENTON FROM METROPLEXr AND MOST OTHER, COMPETITORS WITH SIMILAR j
PROFILES (CONT'D)
provide entry-level talent, the top thinkers in a particular discipline may be available
for consulting, and students can be a good source of part-time or temporary labor
and interns. i
• Many corporate location decision-makers are attracted to communities with i
universities because of the quality of life often associated with them. From
collegiate sports to cultural events, a university town offers diversity usually found
only in much larger communities. This can be critical for a business trying to recruit
employees from metropolitan areas.
• The more presence of the institutions of higher education is critical to any effort to
establish the kind of brand image proposed earlier. Trading on the reputation of
certain programs at the universities, Denton should be able to establish a favorable
•
image quite distinct from many competitor locations. However, Denton should not #
place undue reliance on this unique feature. Potential investors will most often be
just as interested in local wage rates, for example, as university resources.
• . The universities also give Denton an opportunity to Include customized training, one
of the most sought-after incentives, to businesses considering relocation to Denton, •
well as existing businesses that might otherwise have to move to obtain the skills
needed for their operations.
Oenloh
January logs
CONFKXNTIAL
75 PITH kMNus consulting
• A
a
•
•
J.
~6lrale¢c liecomnrniaUans,..
LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH
DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR
PROFILES (CONT'D)
Key Question: How can Denton and its institutions of higher education work cooperatively to their mutual
benefit?
•
i
Ue Mon
January 1996
CONFIDE"AL
36 PIN rawwo consviting
l'' °t f`r fy j a n r
d
41
•
m
•
•
m
Slretegrc Racammendelbns_.
k
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING
CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES
• Institutionalize mechanisms for enhancing town-gown relations
- Ongoing activities involving members of the university communities and the
Economic Development Corporation mutt be instituted. Underlying these activities
G
should be the principle that the City and universities car, benefit each other,
-J
The existing program of quarterly briefings sponsored by UNT should be publicized
more and perhaps expanded
A convened panel of Economic Development Corporation and university
representatives should define an approach with schedules, committees, etc.
Attempt to identify "lessons learned" by universllies in their student/facully
recruitment effort that may be appiicaole to Denton as a whole
r • Institute a joint economic development effort with one or more of the
Institutions
•
J
- NTRI could serve as a linchpin for such an effort with UNT, given its slated
mission of enhancing the University's interactions with the business community
u_
0 ^t •
r.
f , January IM
COWN)ENTIA4
,r
' 37 PHH Future Consulliny
• •
•
cj
•
•
Shat c Reconxnendations,..
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTII
BETWEEN DENTON AND ITS UNIVERSITIES (CONrm t
- Convene a forum for discussions between university officials, public officials, and
business leaders to Identify one or two potential growth sectors that play off of lif
existing university strengths or areas In which the university would like to move. f
Ultimately, businesses will want to see the advantages provided by the university
presence
- One example could be leveraging UNT's excellent accounting program to lure
back-offices of major accounting firms and corporations
Consideration can be given to establishment of a university-related research I
park
- Create a joint task force to pursue any such targeted sector(s). This effort could
include, among other things:
working with state officials and local banks to make seed money available
establishing a center at the university that could serve as the focal point for
development of the sector and attraction of expertshabor
• - Consider Tl facility (if not otherwise occupied) or other available land as a possible
center for this effort
i
e O
tMnlon
January IM
COWIDEHTIAL
Tb PHH Venoms Consultin
A O
•
0
•
a
~ ~ &trolsglo Recommendatlom
6
(1.
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING
CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONT'D)
• Design a public relations program that simultaneously enhances the
m universities' respective Images and Denton's brand Image F
Include major references to the universities In new economic development
materials created by the Economic Development Corporation, especially
regarding the top-lass programs such as UNT's accounting and TWU's nursing
and physical and occupational therapy programs
Jointly sponsor events, such as conferences or symposia, Intended to bring
decision-makers from targeted sectors, such as accounting and information
sclence, into Denton
F-
1.
• d
V
an
i
a
• to
O
Denton
F-~ January 1855
CONFlOMAL
PHII Rantnr Cons"g
lLI
-...rm►.w-+~«.w..+....,.. - y rrW .Y~.iBY6~'T..'YYp e.
47 1..
a a 4 .1 • • Y?. i ` jt a,~ a,~t 'di it,9Si'^ lnl i, tlT/ru }~1~411
CA
A
f
Slalepk Rac ornirenb+ticn~
b. ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE
BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TO
IMPROVEMENT OF THE REGULATORY ENVIRONMENT AND DENTON'S IMAGE
,n
. Any community of Denton's size will suffer from some fric;lon between municipal
officials and n?gula"y agents on the one hand, and the business community on the
other. To the extert that they are unavoidable, they should nevertheless be
minimized and addressed through appropriate mechanisms.
The tensions between City government and the business community have received
significant attention from the media and Interested parties, Based on our reserach,
we believe than the problems that do exist are relatively minor and witnin reach cf
sdution, The perceptions of the magnitude of the problem tar exceed the actual
severity.
f . Our review of Denton's land use regulatory scheme Indicates that it does not
substantia'ly differ `rom those of marry other communities in its approach or
obje .Nes, although it may be more specific in the reouirements Imposed on
developers
f Real issues do exist. At the crux of the situation is the fact that key players In the
Denton business community strongly be ieve that the regulatory process overseen by •
00PAQ n
~7 JIM81V 7B9ti
CONMElmK
du P]rrlrwiueCowwfik j
f 0
•
a
•
•
J
4ralepic ReCOmmertdalicnS
ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE j
BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TO
IMPROVEMENT OF THE REGULATORY ENVIRONMENT AND DENTON'S IMAGE
(CONT'D)
F- staff, especially the Planning and Zoning Department, is one of the major j
impediments to further growth. Again, while the reality of the situation is not nearly
as negative as some have painted It, evidenced by the results of a recent survey of
existing businesses conducted by the Economic Development program, certain I
elements of the existing situation should be addressed:
Personality Conflicts betw3en developers and top City managers have played
a role in cultivation of the anti-business image
- Application of zoning regulations and rules has, at times, appeared to be
arbitrary and capricious and unnecessarily restrictive of business activities
(i.e. City staff have requested that businesses undertake activities not required
by ordinance language)
e rr •
- Some Metroplex-area developers have experienced excessive delays in accomplishing certain
projects
F;
J.
c" dent ail
January 1895
COMF1DENi1K
41 MN[H Va"1163 Caasvld"s
• 0
•
•
•
o ® Irale9W Rucomnendallons... t
ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE
BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TV
IMPROVEMENT OF THE REGULATORY ENVIRONMENT AND DENTON'S
(CONT'D)
i
• One positive development for Denton is that members of the City Council, the Mayor,
and key City professional staff have recognized the need to improve relations
between business and government and to streamline the regulatory process and
have taken concrete measures
W {
1
• The sign, landscape, tree preservation, and sprinkler ordinances passed by the City
Council in recent years, while undoubtedly causing some frustration and delay for
developers, can actually be seen as long-term brand management assets for Denton
So long as there are problems and tensions in this arena, or the perception of such,
Denton's economic development initiatives will be negatively affected.
•
Key Question: How can government officials and business community leaders wci k to ensure that the
City's regulatory process does not become an impediment to Denton's future growth?
:L
January 1995
COWMEN71AL
n]
42 PHH f onlur CoaudNng
• a
•
w
•
0
.n
n_
6bale Ic RecommendalOn-... - -
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES REGULATORY
PROCESS
• Establish an effective mechanism for continuing dialogue between city officials
.r,
the regulatory process
- leaders regarding
and business lead
-
Utilize the existing Chamber Local Relations committee as a conduit for
discussions or establish a new forum that includes top City and business officials,
r- It is essential that the group meet at least once per month to ensure immediate
response to "hot button" issues.
Municipal officials must be more effective in publicizing some of the reforms that
have occurred and that will occur. For example, ongoing efforts to establish a
stronger customer orientation have already been initiated, and the platting process
has been streamlined.
• Ensure that regulation slordinances and the processes associated with their
• promulgation and Implementation are calculated to bring the kind of
development favored by the public In the shortest possible timeframe and do
not place Denton at a competitive disadvantage f
-
Undertake a review of regulations/ordinances affecting the business community
keep ?n place those that serve the long-term Interests of the community, including j
o beautification measures o
City managers and staff should undergo customer orientation training on both a
formal and informal basis there must be a major focus on customer service
Oenlun
January 1995
41 PITH Fsnlus ConsuNieg
•
•
r
r
.n
P.
Slreteglc Recommendations
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES REGULATORY
PROCESS (CONT'D)
The Economic Development Corporation should establish a one-stop permitting
process and an ombudsman position
- This will help to keep Denton competitive with other Texas communities that
have adopted these features (see facer)
_ The ombudsman can help businesses avoid interaction with City departments
W with which it has been difficult for some businesspersons to work
t
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0
Delon
January 1995
CDNFIDENTM
`.i 44 PHH Panlus CoeiuNing
• • 1 s .j t rL t}b.ef11 ~ S Tt? ~aK ` ;
a'~i~>> t$t1'~` i~ n :`+'k r1 ,j'"7t4T~GI{j~vrk
•
c>
0
0
COMPETITORS' APPROACHES
One of the more progressive Metroplex communities in terms of economic development has built
the features noted below, among others, into its program:
• Designation of an Assistant City Manager for Development Services, with overall authority over
every city agency even remotely related to development, including the parks and recreation, j
traffic, building inspection, and planning departments
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• A customer orientation, learned through informal interaction between managers and staff, that
prohibits staff from identifying problems in developments plans unless they can articulate
solutions that will help developers ultimately receive plan approval
i
• Appointment of a Development Coordinator answerable only to the City Manager and Assistant f
City Manager for Development Services, empowered to resolve all issues between developers and
municipal government. Critically, this person has a solid understanding of all facets of the
development-related regulatory scheme, a very positive manner with people, and authority to go
over individual department heads as needed.
• Project developers are given a voice mailbox at City flail in which they can leave messages that
will be promptly returned by the Development Coordinators or municipal staff that she
specifically selects for each project
• • Adopting an overall problem-solving approach--ensure that projects meet minimum standards •
f clearly established by law, ofTcr added value by making suggestions to make projects better, and
let developers know exactly what must be done to gain plan approval
• a
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m Competitors' Approaches
n:
One of the largest Metroplex communities, which has taken an aggressive approach to economic
development has instituted certain policies to make itself more competitive:
• A Department of Development has been established separate from the economic development
program--the two interact, but the former has much broader scope
m
[
• The city has adopted a phased permitting process that allows a developer to receive a permit to
begin work within one week of meeting with Department of Development representatives, while
waiting to obtain other permits for specific activities
r• A properly owner can "move dirt" on his or her land prior to obtaining a permit for all planned
activities
• Most zoning changes can be accomplished within 3045 days of introduction
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6. ENHANCEMENTS TO DENTON'S INFRASTRUCTURE SHOULD BE MADE TO
POSITION THE CITY FOR POSITIVE, IF NOT IMMEDIATE, SIGNIFICANT GROWTH
• Virtually all interviewees agreed that Denton must have developed sites available to
meet the needs of businesses that would consider relocating to the area. Currently,
the City not only lacks spec buildings and fully-served lots but is not even in a
position to discuss the price of land with customers.
4!
• Other infrastructure improvements are necessary to better position Denton for
growth:
The roads near Denton Municipal Airport must be increased in number and/or
improved
- Because Denton is part of the four-county Non-Attainment Area for Air Quality,
municipal officials, in concert with the business community and the other cities in
the Non-Attainment Area, should work to limit the capacity for that designation to
• harm economic development efforts
• As several interviewees noted, even if Denton makes the above infrastructure
enhancements, rapid development will not necessarily follow. For reasons rang ng f
from the availability of attractive infili closer to Dallas to the perception of Denton as
® being outside the Metroplex, the kinds of development nn seeks may still be
several years away. 0
Key Question: What actions can be taken in the near term to strengthen Denton's infrastructure in areas
of relative weakness?
Derflurr
Janvery 1A~5
COWVEN f IAL
45 PHU Fantus Consulting
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6lslugis Huconvnendegans ~
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PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - INFRASTRUCTURE
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The focus for Denton must be to ensure that fully-served sites and buildings, competitive with those
available at Alliance and Fort Worth, are available to lure potential investors.
• Development of a business park, likely in the western portion of Denton, would
be one measure that would enjoy near universal support In the community, and
would serve as an Important cornerstone for future economic development If
done correctly
This effort would directly address the need for fully-served sites and spec
buildings
- Denton may have to develop the park as a publicly-owned enterprise, and could
do so through an Economic Development Corporation established under 4A
- The STARTEC concept of the Business City VISIONING workgroup provides a
good starting point for development of the park
• U • As part of the enhanced economic development program, a strong effort must
be made to obtain reasonable price quotes for some or all of the available land
r.
In Denton. Possible steps Include:
- Personal contacts with landowners by prominent DeMonians, as part of a
• coordinated campaign, to make clear to them the value (to them and the City) of
establishing a market for their land • j
' - Periodic social/business events that could be sponsored by the Chamber and City
to which the landowners could be invited
.n
Denton
January 1986
coW K*NIIAL
r.'.' 46 P1111 Fon1as Consrlling
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Slrefegic RecommendalWns
PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - INFRASTRUCTURE
(CONT'D)
• Upgrading Airport Road, and/or building an additional road for Ingress and
egress to the Airport area, would enhance both the value of land in the western
part of the city and relations with existing businesses 1
. A new effort should be made to have the Texas Highway Department add a new
exit/entrance ramp to 136W to improve access to the highway for businesses
located on Its western side
s
To alleviate road congestion that may occur from establishment of new
businesses or expansion of existing ones along the 13SE corridor, Denton
• planners should begin considering road improvements and additions that may t
v, be necessary, such as repair of Teasley Lane
. A strong education program should be launched, in coordination with NTAC, to
u. make Denton area residents aware of the adverse economic Impacts an
o health hazards resulting from continuing status as a Moderate Non-Attainment
Area or becoming a Severe area •
Expanded mass transit offerings can be considered. The STARTEC vision included construction
of a monorail and, whether or not the business park x
o, Donlon-----
January 1995
CONFIDENTIAL
47 Plitt N.ntus C'onsdling
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Shateoe Recommendetbnv.
becomes a reality, such a transportation asset could be devek)ped, for example,
as a substitute for more access roads to the Municipal Airport area.
• To support financing for infrastructure Improvements, Denton should actively consider a
plan that would require the City's large not-for-profit entities to make payments In lieu of
taxes specifically dedicated to economic development
• Strong consideration should be given to the recommendations of the VISIONING
workgroup on Transportation City, such as development of alternate transportation
modes
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DeMOn
January 106
CONFIDENTIAL
i
40 Pill# Rentus Conwhins
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7. DENTON'S LABOR FORCE IS AN ASSET FOR ECONOMIC DEVELOPMENT
EFFORTS BUT EVER-CHANGING WORKPLACE NEEDS DEMAND A PROACTIVE,
DYNAMIC EFFORT TO MAINTAIN HIGH QUALITY
Denton's tabor pool is a relatively well-educated one that receives solid reviews from employers.
As a general matter, this will be attractive to businesses considering relocation to the area.
The university presence, as mentioned earlier, helps ensure a steady supply of entry-level
personnel and, with respect to some professions such as accounting, physical therapy, music, {
etc., more accomplished Individuals {
The Denton Independent School District has leadership that seems attuned to the need to
establish an effective relationship with area employers, and potential cl-Carly exists for enhanced
vocational education programs that go beyond the current adopt-a-school approach
•
Denton
January 1695
COIiIDFMfIAL
49 P1111 VOMUS co"Whing
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PHH FANTUS CONSULTING RECOMMENDED STRATEGIES LABOR QUALITY
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To keep Denton's labor force at its current high quality level:
. Denton should work with the institutions of higher education, Including NCTC, to
identify existing training programs and to project skills needs of business for the
foreseeable future, and structure new programs that will produce future workers with
those skills
Denton should also make arrangements with as many of these institutions as
necessary to develop customized training packages for newly-arrived businesses
and existing employers
I
• Given foreseeable cutbacks in government funding and programs and with a I
• relatively high percentage of Denton's workforce employed in the public sector, the
N City may want to target training programs, offered in conjunction with educational
institutions, at these employees to ensure their continuing employability
The City and the Chamber should devote more energy to working with the Denton
• Independent School District on programs th,t train high school students for positions
that local businesses will need to fill. Modeis for such interaction can be found in a
-number of other jurisdictions, I,
Jarmury 1095
CONFIDENTIAL
5D PH11 Frrnlus Cunsulling
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PHOTOCOPY
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January 1995
CONMRtIAL
51 PHIi Fantus Consulting
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Action Items
IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER
AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS:
i
• Lay the groundwork for adoption of the economic development sales tax. Assuming a consensus
exists for it among City and business leaders, the City Council should adopt an ordinance calling for a
vote on the issue. The quicker the tax is adopted, the sooner an Economic Development Corporation
can be established to pursue marketing and tier initiatives.
• While the election process runs its course, the current economic development program can be
streamlined to enable more effective action in the short-term. The existing Board should be whittled
down in size (perhaps to the five individuals who the City Council would ultimately appoint to the
Economic Development Corporation),
I
• Initial steps ?n the brand management process can be taken even before the economic development
sales tax is approved, For example, in addition to the analytical work described in the next few pages,
• efforts to define Denton's "brand" for the Metroplex could be worthwhile, However, since; the analysis
and targeting should drive decisions about the city's positloning in the attraction/retentlon marketplace,
it is important not to structure, ur expend money on, programs that may need to be modified.
,x
• A forum should be established for City-business dialogue. The group that convenes should be small
e and, at a minimum, should include the Mayor and/or one or more City Council representatives, one or i
two business community representatives, and at least one representative from a higher education
institution. This grouping would symbolically establish the critical City-business-university triumvirate, }
and would allow for surfacing of issues as soon as, or even before, they become problems.
Denton v
January 1095
CONFIDENTIAL
52 PHH Fantus Comuiting
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Action Items. • ~i
IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER
AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS (CONT'D):
• Discussions should be held with the City Manager and Planning and Zoning Director to reinforce the
need for a strong customer orientation at City Hall. These could occur as part of the forum described
above and should involve both public sector and business representatives. These discussions should i„
be conducted in a constructive vein. The group conducting the discussions should clearly define
goals, which should minimally include improving oversight by the City Manager of all city operations
effecting the business community and ensuring indoctrination of the customer orientation in all city
regulatory agency staff. I
• A review of City ordinances and regulations having an effect on business can be initiated. The goal is
not to engage in wholesale elimination of legal requirements but, rather, to ensure that the regulatory
scheme is not unnecessarily complicated or burdensome for developers of new or expansion projects,
• Appoint a temporary ombudsman, possibly one of the current economic development professionals,
• who could be replaced once the Economic Development Corporation is established. This person
should be introduced to existing business owners through newspaper stories, public appearances, etc.
All new business prospects should be introduced to him/her as the Individual who will help them obtain
necessary permits and approvals. Alternatively, or concurrently, the City Council and Mayor should
consider establishing a position within City government that Is similar to the Development Coordinator
e position described earlier.
1•
O-enion -
January 1995
COWIDENTIAI.
33 PIIII Bantus Comoking
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WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING
ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY
All of the following activities can be initiated now. In some cases, final decisions on approach or policy,
such as with incentives, may appropriately be left to the Board of the new Economic Development
Corporation.
i
• Identify existing businesses with the greatest growth potential, and those most likely
i E
to consider moving out, and have account managers work with them to ensure their
continued contribution to Denton's economic well-being
- Work with them to ensure that there are win-+Nin situations that can be publicized I
as examples of the support Denton offers its businesses
• Perform a thorough analysis of manufacturing activity in Dallas, Tarrant, Denton, and I
Collin counties to identify which kinds of customers/suppliers of existing businesses IIII~
are not presently in the Metroplex but would be useful for businesses to have i
• present. Once this cluster analysis has been completed resources can be applied to j
aitraGirg those customers/suppliers.
• Target white-collar businesses fur relocation to Denton
- Define high potential clusters and target markets by industry, function, and
e company and by geographic location
Work with the Dallas Chamber to identify businesses planning to leave Dallas that e
J might be persuaded to remain in the Metroplex by rnoving to Denton
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Uentnn
.lenuaiy 1995
CONFIOENTtM
54 1'1111 Fenirs C"PoAling
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WAdionitems,
WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING -
ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONT D)
• Obtain market prices for +he available parcels of land so as to be able to better
market them
• Cement ties with the Dallas Chamber even if Denton's economic development program
develops as anticipated, referrals from the Dallas Chamber will remain important
• Begin developing a revised Incentives package that is consistent with the brand
image of the City. It will be critical to include training programs and perhaps one-two
items unique to Denton.
• Continue efforts to find a purchaser/occupant for the TI fatuity
• - Success in that effort will have symbolic value
- Work with NTRI and the universities to determine whether the facility can serve j
as the center for joint university/City economic development efforts 1
• Begin positioning Denton to benefit from NAFTA-related trade
• Engage in selective advertising in media circulating in Mexico and the portion of
the U.S. that is the current hub of manufacturing activity, as well as in media •
reaching decision-makers in sectors likely to engage in trade between the two
countries, such as electronic components
benlon
dahuary 1RD5
CONFIDENTIAL
55 PHIL Fantus Consulting
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Adbn Items.
0
WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING
ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY;
(CONT'D)
.a:
Develop a spec distribution center either as a stand-alone facility or as part of a business park
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Action Items...
January 1095
CMIDENTtAL
S6 P11H Fmtw CousuhWg
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DENTON HAS BEGUN THE BRAND MANAGEMENT PROCESS...BUT THERE ARE ~
MORE STEPS TO TAKE (CONT'D)
• The facer page depicts the brand management process in flow chart format
I
• With the completion of this project, Denton has finished Step 1A. The visioning process has led to
partial completion of Step 2, although further refinement is required. PHH Fantus Consulting has
made some recommendations for product enhancement (Step 3) but economic base analysis and
industry targeting must be completed before decisions can be made regarding which Improvements
will be most meaningful to Denton's targets.
• The remaining steps can be completed as quickly as Denton is prepared to move, Steps 5 through 7
are ongoing activities that will uldmately dictate the success of Denton's economic development
efforts.
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January 1995
COW OMML
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PHH FANTUS CONSULTING'S BRAND MANAGEMENT APPROACHTM
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competitive (2) (a) (4A) (s) (6) N
Product r
DetinelRefk~e t?evelopmentf Brand Account Implementation
Vision for Aree Enhancement Marketing M( .ayement
Aflaaion Re!entlort
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(Cluster Analysis) ts+bJecUvea AttractOon Monitor
Qos'a (fig) Segmentation 1►1 Results
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Positioning
Strategy
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TABLE OF CONTEN-
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® Introdadbri enJ flnck~ruiM
FINEOMMUM
Tne Denton Chamber of Corr:nercc has retakwd piles Funh.s (:oroulling Ic evairiale totb Denlon's cunrpelit w position frr
attracting anti retsining businesses and its rttarketing and retenlion proyrsms, and Ir. idastif7 possible strategies for w!urrc!rlg
Dealon's nffortt.
Our ;rpeclrsc Anion is Ns proiecl includes
■ Identification of key f'ectors in the typical carptxrte loeilion decs'on•rukisg prwass
(J
4JI
■ .Antlysis of Denton's -Kisting situation, reviewing baseline s r ngths rrd wcaknesws, trd kkrtificat.orl of
economic cevelopntent opportunities and threats
r Benchrnsuking of Denlor's critical ux,;tss racwn or uoromic development ark] rxnnpanag Daatoa .o Ivey
ccrapetkor loce!ioas
■ Sp&;& aisco new of [hnton'y existirg merkeling atd reteslion programs
Vl
• lrluniRcation orpo~sribie econowic develop writ strategies rot Denton trd related program.. wlic and
• ;f cperationaliniliat.ves
1
• ' 1
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nenwn ('.Ilarn00r «r"Or11ri1rrCR
. ttorrnrber ON
OONFIDEVTIAL
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INTEIPM MELON KIIII
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CoWl Marwfaoludng Board of Reahws Nr>GCluw h I IuntPel(oluuxn Cop)ia0@n. Donald Dildid i
f)o~AAon Publishing Coirpmiy fill Paliwson J" Pedal
Russell Neiman MarnAauiwtn9
,bstnrs Gl l' Telephone Control Area iAlAwn Willis closet( C uslom f km s Fred Grwotl
Boeing Aerospace & Eleelionics Denlun Irxieper)iont School I[Wricl: Or Apart l'homas Ililwoodouvolopmenl Corp. Rw+ald Wtxlu
PelefiaM Molors Company first Slate (lank: OW BroMuhorsl
' Ill Will Ford Bill (Mier Sr
fexas Woman's Unlv+ssily. Dr. Dwell W. BWis
Cary of Dentin:
Mayor ft CasYuberry
Comm MwrW Wine Koch
Council Mmtw Jack Mill of
City Manager LloyJ ((erne(
Murk*ai Wines Dhrecton Bab Nelson
Planning (Aram frank Robtrins
Dgwrimeal of Economic Dovelopment Linda RaiiM
Deparimerml of Economic Development Bulry McKean
Hayes, Colley & Berry, Hl"Id Hayes
Texas Bare Jell 1 aylor
Uiyversflyof North texas: Fred Pole
• 4' Keep Denim deauidul: CeAle Carson
DerlDOnCharntserof Comrnelco: r;txlrkCarfx,rMou
Ken Uurrkk
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Introduction and Cea49'ound.
During Sep!ember end Oclpber 1994, ?1111 Faahrs Consulling conducled field inturvirws in If e DCrlien area 10 dallier plimmy
infonuation ahout cuno.nl econora: trends, burinesl elimale stmigllhs and vveakne::sm, potential oppnrlunities and lhreaLs, aril
m-rem marketing and retention efforts, Ir.Ierviews wore arranged wilh the assistaice of the ChFrabef of Commerce (Chamber)
^1 ` staff rid iadueed the wowing ume;ories of it terv.ewcss.
■ Koy employers with sigrtifi.atit operations in rranutacfloing aid se:vicas
l of l lected aed professional ?ubllt: sector leaders
a Area pxfossionala in developnr,at, real estate, mass -nedia, firancial services, and higher educmion
■ I'rovilen of utility services to husinees
■ Community leaders
Our analys s further miles on a variely of ?uWished soureos red PHII F'amus Consa.lliAly's proptiatary databases covering fac.urs
-tit cal to the successful roeaGon and expa iskm ofbusirK ss nvestmem Finally, our aaalysds is also iNornx d by o review of
• ova"all economic and enp;oyment trends of Ih: local and na!ioaal levels.
j
PlUf Fanhrs Conaultiag's approa(h is based oa tl.e metaodology t`at a typicd company would Ilse is tiro cuu~se of a iypi(al
Ixation ewlinticn process.
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- I lent- of Clamber W Cornmarcn
Novamber 1994
P:17rFlCFtlllll
1 I'I III rantus Consulting
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IMroduclba erd Bar rourv•,i I~ilUNTiI:'1~MfFII11x?',rE.' ii~IRTs
Our findings from;!,
p , + 11 1 ' r.d ca in hvc scpnrarc dcx smsnt;
■ •THs repul Addresses thr ';rst h' a Worksleps of the prryccl, which were the subjc,I of the Plies Fanlus
Coneulti.sg progress hsict.,g held iii Denrlon on October 21, .994 Spracifictdly, we havo idtwi'ieu Zhu key
factors io !be typk e.1 coypu' 'ale location ueeiskm•mekirg process, described Denton's Crtic.d Success FAClors
(CSPs), analyzed Denlon's strcablhs, weakrresm. slrwegic opportunities anc strategic Ihrtals, and provided o
herwhmrking aaalysrs wmpariag Denloa x cempetk r locations rationally and in the region.
r"
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v The final report Mli assess Dcrtw's exisling rntarketing and rwen•.ion pne}trams am idenrit'y ecorHmvic
dcvtlopmM strategies and assocated pwgmmn•alic maid operalk naVniliatives
' Oanluu ci,an>or ulCotxnouu
Nrvaiiber ID94
COWN)ENT A_
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Inlraduction end Back rouna
FM FANTNS CNNSN11111 US MR 15 YEARS IF SM IIUMN OW NIENCE ANN pIgMETARY
SATARASE IN UNTIRN MT IS AMUR TN ELY FIMTE no MMC SECTIN POSIECT
■ This experience is applied to our consulting work with communities arld economic development organizations
throughout the country
r
• Denton's economic development CSFs, strengths, weaknesses, strategic opportunities, and strategic ihreats
have been evaluated from the perspective of a site seeker to ens'I)re ohjectivily and insightful conclusions and,
ultimately, to provide recommendations for improving economic development efforts
■ [1111! Fantus Consulting has a unique understanding of the site localic,l process and has completed over
8,000 silo location projects
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°CONFIUF.NfIM.
Pit" Fanlus Consulting
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FACTORS IN THE LOCATION DECISICN-MAKIW
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EVOLUTION OF A DECISION; c,`
FACILITY INVESTMENT SCREENING PROCESS
` • ~tawro sarr+n
~ ~AIuNf-BlMe~►ndtof aN ounby
LYNI~AT.BEIENTiQN_FA~1.41~ TYT'MALAr_I~4fI4N.T'BQ.f~N§
• raowK * oMbw"N 5~ twIm slnf p444Iff CIM.fa "Kll ENrrfMefM S(JtpS/{.'V4liI/lNl
stall 1k 4 CMMp COrh.GMfV4 slits Ww"Il C"I's CwwwnaNu A
Conv" W& mom4m-ft IffMf*vf ff4faay :Ipffer PfIW 41.401 mseumf = *4 to Seacfod'7UtocM 0411'
II ro sk wfrail II MI ft4 Lr.f1 Feefors
. IMkb4I . Ippllk,
pmw" G mf Ml n ceKy.ewl prof ff" to 4x411 I .Imfwz«f
•U rlleCAwwAM IMIM - 4MIa11If" WWI
1 - fpIIW 4I swm Mbwl
'a) ftIMM WI w IrlM f, pMIMW M1fM'f a+Mapppy
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i111P~ 17
. ; • x8f~iA ~M$A~!ti.?+~~f,S~~11141fIk~Rlgfln~ll~+NI~NMup3.CVnnNNArs!rf ~ ~
f.r 3
TYPIGAT-RVINIONFAMR3 TYPIMAfrl?Ag QU A_4T4L
An, w•pf [IKwne Ds"iwmm Ul s 006"
o'"I of MWAI II'OVA • AwI W.,„ EAWrufed WAf/
. W ba I:T'M(Mfnt • awl a wpltlwa C.icv COMMUMWr due to
* 4vsMwtf a wM ~ MM I Sd/ebd'Ip Iwh Our
,fwIMMVMbLAe saw W !MA(r Factors
C.fkf Up", Maflplpf ' 114I0144 vole KIM
AvMW h If bl+cftl K.t I1W\I • 01M~ smo ArIpIPM
ArIMlblpr of $pI1AN AxfAWfl
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v1
.Ntni f Q¢mgt K4/ and silo*
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blyjif{' Cp`•#MtuMli
IYfKA1A€IENT1Qil!AnJACT_K)N.f:A_4TQRS EgmhwW Cummimlow
w,y. iN1Y dw to Seeded
n.
• o.wlxe cwa "/SrpptA 0wr" Facton
sIMf+11 sAKa.e4rq PwuRmf
CM4Itlfn.tkf .
• odJM lMOI 04461
tW M1.19"W4 RNI t
mhAI(mOH DIWlf
Cw WAI/ Corlrfwn
• Y61rf V IH IfIAf1
FlnMisl C r4U Mlles
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. _.~,r~ . • ~w.r rYw.M.114R'LXx;'iL. Y.Ne....
•
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•
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Kay factors in fire Lucalum Oaclsion•fdaMYng F>r«;ess
i
NO ASSESSIIM IF DERTIN REI OTS TIE IMMINENT KCIS11R-MAKING SGREMB PROCESS
YYMCALLY WINE/ NY SITE-SEEKIIG FIRMS...
rr The lemplato reflects a screening process by which rile-seeking firms sequentially eliminate pruspecIive
locations based on Ilreir failure to meet selection criteria at each level
• The process typically moves through various screening levels.
• Macro levels raulli•sta(e and/or multi-country
• Macrolmicro level(s) selected cilies/counlics in remaining states/countries
• Micro level(s) finalisl/serni-finalisl conrrnUI`16 s in selected stales)crNtnlries
A Almost always involves community visilation
♦ Deals with specific sites/buildings
■ Many factors track through the various screening levels
• ♦ Levels of detail usually beconw more specific as one moves from macro to micro screening
• ho( example, a site-wekin company might fitllow the following scenarios dulin screenin
6 B B~
♦ AI the macro level, image might be of Texas' stnte business climate, then image of an rMSA
based on a preliminary visit for the macro/micro level, followed by image projected by o Spccifia
site in a finalist community
0 0
ANN MOVINES THE CUTE17 IN WINN WE ASSESS NEMTIN'S ECININC BM "MT
POTENTIAL
Uenlon Chamber of ('amrnerce
Novruabor 1994
~l CDNFIDEN11A).
.6 • PI{1l Fantus Consulting
•
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A
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•
L7°r •1.
TYPICAL LOCATION METHODOLOGY
1
1/1
1/)
^1 Idwwnwy 9sseafi Ara
J
f--
1 1 f Fbd ad*roorafim J laborftwwtf"=
V Aoom*Wty AvAarklity
Quality
V To dr** 0.061
I kspd ~ekt{diar an kxfudry 11s6orhrer~Ipsrerf rdaCcrs
Fao anbld ox
r Fs6lwr An6iy6h i FialdMall ~
' i
Cor" D,16116d Analyze al Rdrmt lone oy4tml"
• ~1 TYPYf+1elo Fi~ak ~7e Isew6 in ~ . a°p'' a,d Fleoorrrren~ur
Ii6oo mwid Too to Tlww
CorrwuiYa
_i
e ~*n+N nrowriar
1,)
III
1,1
' r , . : r I f ~ ~ : f
•
•
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i
Key [,actors in the I ocalmm (locision-Mahirnt Proref5
IrR ASSESSMENT If RENTON REFLECTS THE IIMSTMENT NECISIMI-MAKING SCNEENIIIG PROCESS
TYPICUIV EMPLIYEI NY SITE-SEMN9 ARMS ICINT'/)
A Incentives screening might slam as a perception ol'whelhcr the Stale af'I'exas plays [he
"incentive game," followed during the mid-stages ol'screcakrig by consideration of who[
incentives might he available at the slate/county level, and finally consideration of actual
incentive anwunts determined through slate/community negolinlions
r ■ However, the !actors are otlen viewed from ditl'crent pcrapeclives
• For example, CKisting corporate citizens (retentiorr/expansion candidates) ore able to view business I
climate from an objective perspective. .
• While outside Srtns (attraction candidates) may rely on subjective, preconceived ideas about
business climate to make their location decisions t
I
• At the micro level of screening, aliraction candidate companies will ollen eliminate a city iron comlimilion:
• • [lased on subjective inputs
• Before positive business cdimalc features are considered and before actual contact is made with oily
ccunnmic developers
e . , AND PROVIDES THE CINTEIIT IN WNICN WE ASSESS DENTIN'S ECM WC KNELIPMENT
PITENTIAL + •
Urnton Chambor of Comrnorcn
r4ovemlrer 1994 1
CtkJf WA I IAL
lit{ F'nrnus Consutliul
.7-
0
•
•
•
•
I 4 1 t V t v 1 ~ ,
KoYFaclat kl the I,orellai Geclfun Malciig Prxecs '
IO1 ASSEU EMT IF 1ENlIN BEBECTS THE INOESTMENT 1EI:ISHIN-M UNC SOMMINiI P1IOESS
TYPICAiLY EMPLOWN BY sm-S M 112 E1M , ..ICerm
• The ccanomie deveSoplaed fcnctiun is a ke y Iccntior dctenninan: source
• It aerw,; as a "window into the city" and is oven the first conwi point I outside, sio soeking
comparks i
• It selve; is ;Ik principal Aver.oo of rrJress fur in city nrnk, havaig busimuss c immu.related
pxblenls
..l 3
AN PBOYIIES THE CONTENT IN WNNWN WE ASSESS 111"IN'S ECININIC 1EIMLIPMENT
• PITENUM
CnnMn CYnnbse ul Cnrmo'vn
hU/lrrb3r 1694
CLkif ICEN I I AL
. PHtI MAetNI ('oesuhulg
•
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•
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RELATIVE PROPORTION OF TYPICAL FACILITY
VARIABLE OPERATING COST"
G ~
M/d IKIYyIr IIwWW WWO F1d*y N
~ ~ 1% 71 IItL 11k
rn~g
In e.-
I',II+Y~_~ 411Y1_
N* ■rFee, t + I It
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ftwwl>r+~+iliyiMprw,
rllA+fNIN+114f +aau.w:l«]
r' „ klrrw NneN INwI' fIf IM1 MIMNIIID
V „ FaluYy MINw1~ IIM SM Mbl, nr Iloru►1 Yr]ffM pron. i
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Ke FadarrlnInfo OtJ%OnOeCl IcnNekloP()tell
111 ASSESSNINT MKS M TIE NAC WIND Alto NICM-IEM OF 1MI SITE SUM
IfECIS1wN g Men$, IENIIE NIT M MIN NE MASM On
■ Moil Ixat;on pros?acts wp Nnian will emerge from a screening process srlvch frst idcraitias Toners Andor the
Isdetroplex or Denton County as a suitable project vc.iue
■ Out analyiis conuentrrtes on loaot'on critcria eaarnined prinntrily during the Ielter stages of the locat.on
screening promos:
♦ FFact.xs covidered to be pert of the DaNas M1FSA business Arute
• Fartxscouidervdto be part of localbusiresst:linnate
♦ FaGots M It.eso kvds arc nrore likely to be corArtAlable by kacal faces
■ Stalelevd `actors also am considered, but ihey ore touch lest subject io local roeredial action
R ON ana ysis Consicers irrpaets 01 FTIVAChrri ig anc wnitc-collar types of development, whiah we mo, very
diMicit processes, as soon in tho facer
t)--6n Chnntha o Cor nwce
Nwember 1931 „
eCWIDFNIIAL
g 1'1111 Fanlus Vansaklat
• • Pzi, I ~ ti 1141 tj~l~'c4 ~T~T1,4~~d' ~v.
•
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pki }~1Elritly Y' to/Hi> U~'x+r x {r}r T(~ J'Yd t+a t flh' 11Yr
~ f~ + l t~r1111 s I~r~~1+ ~1~t1 Y~f ~(f~l 1!{rlJl'j yf+V°F ~It Elr~f ~~i i 1 { ~C rr~~r YH~t 4~E~J
~s~t' i~Pr~t~jx i~u(,~St: u f r I~~s•rhi t x v': t ` rub Jj.,+ri ~ ~~4 r.n r , + ~rI { !
}}~S o if I 4 I x r~: 1
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t(1 f~y~xt~ 4~~~'t PZ tw t r ~ 1 ~ ! , ~tr.t t t t r y
+ ° < 4 rtY.pt l i R."r + + r aE~ ~ieth< it Nt{,~ J+~lr rj+
~v .fit `t ,774r t<x+y trh~ E ~r t1~ j' t x: ~h n r
jH0tU1~ Itk ~t~, .~<orh ~aty ~1 f~ ~e ~S 1'1S i iYLu 9 u1 }~~~I~ ~ t~r~~ir r ~r~ ~.~{r2 i
{
CRITICAL FACTORS (CSFs!
+ I
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iin, 5.(' 1( L' 'i T t " ~ s 1i~ h
f Yo9t.2~~ r~~tu~w nr 1. tilt a( ~J;lt '~h ~ S+~irirs ~t~Y~.t ~x-'tt¢Y1tt'~t
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5 qi ~ ro i { G {~A1 ~ 'n`or .1 ~iH `tY V E ~'r~ ti ♦ 1 ~ ~~~f{{{+~~~i~
It S'r ar Y 11 rY~ ~1~ ~i 4 ti N `~'.rt7(4 EI:{ o{2~rr f2 ~Sra g zig ~A
F r. r Y~ 6 l ~ f qr
• ~,rlf ~ii~rd`,{s3 I~~r ~ rs r~ i, t fA" ' ~ ~ ~ r~ x~terY~t `f~ ~ ; til ~
t + n .r ! Sys llejr r
+~'r ✓}1 (t i Ss' d t~'S~': iY j it vll a ~'J'° ~~a'~ t T ~ I~ai~ ~ r I
'r'3 it + ~ F v Ei L i - 41 wn rljt v q r ~.r C Q {sit
r x +t i ~,t~Y r tt u}'' ~~si Y~ l S JtN
4 a' n~ y V i rr+! itd F x r .~y~ n,•,(~ rJut ~'i r~fr rl R~
r+ai~l r( r rr to(
t+ 5r iy Stin ,1 tX lie!
r . rr)~.F ~ rJ~ i j i i~'Eir ptt'r prti}~ ~!c 'i r°Ernt ~~r~~
•
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AF.NTONIS CRITdCA! sC1r M F ,ecllt5
Labori~ke~i+Ontlgpn;c . Irnllla
r GAabtdl I `boF°Iavgllablyty .
4Pret program
labor qua l~kylprpduclivi~y . kcofoR>c dave
sr Reulatorv OnylrQhRlent
■ L BbQr CO!!Ip 11st 'tr~Ar1b♦ItS} ■i11998Na~1~Eee
r tsbdr,,tntat)1~itMiirit',f61911q,~5 ~ 7aXOs
y
Ir" AstrucOm Coati
>w 7`ra~napo►igtion , ■ For manulsctu[irfp
■ S(fselbugtlirtips ■ For rsori rner,fa+~IXIn
■ iJtilll(ge '
■ Air gUORIV
Quaft,of ;
■ gvatl'abrfky ar~d yr h0ua
ECA Ilk
■ io'rt
■ Ft;~txe~~}on and cuiturp
~r--^4 yr, `'r' ~^.y-•~ c~ I
~ ' ! I i I ~ I I i i I 1 I I I I I S i
1
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® CY1SN'r Cr 11 Cal Sue"ESS I Edo 'S (Csys;,
W VnNUr COMM THE aft N1IWON'S EC~ IEYEI/MIEW
• Wit 1, the Iocalion scremng process discussed i:'wyously in mad, 141111 tami us Consaking dewiminec
Ihat Ite following we-e the relevant coml,ohiveness factors on which our analysis of strengths,
vseakr,esses, stmeg'.c cpportunilies, and slralelpc th•ea.s sliu)ulJ focus. Tlsese are anong the pl:msry
criteria being used by location Jecisior•makers Iv saeen Iwtwems competing candidates for invest nleot
♦ Lasbm marker corsdn ats
♦ Irf1'rastrueture
• linage
♦ Lccalion
• Quali:yuflifr
■ Fat this Report, w•s have identifled comput4of Incatirxss inside and outside of Texas that havesnsial
wtflrs to Ikcton and Ic, w-wich fknttxa cam owUly and reaso•aNy be comparcd. Thurc comrafisons
ate higNighl a in dw grapaics throughout the rc".
rq ~ ,
I
Cenbn, t:IlaR19f1 GI CINIAI'eff3 ~
Nwerrlfw 1994
CDNFOXWTIAi
• I I - l'II11 FSIltllf ConsukinR
•
ca
•
•
c_ ;1t
KEY LABOR AMRKET CONDITIONS
Labor Avallabillty
y
Labor GualltylProductivity
® it
Labor Costs a
t
Labor/Management Relations
ROMP
Labor market factors have played a role in every one of rrore than 8,00 f HH Fanlus
Consullirg to-,ation projects. DecisFDn-making factors In the labo• Tarket category cover a
troad •ange: labor availaoility, s<Nls, educational background, lebormar~amerN relations,
wages ano fringe benefits, orocuclivily, industry mix abserteeism, and turnover.
In the not too cistanf past, wages and letorlmarlagement issues fended to dornlnate to t
decision. making equalion. At the present firne, and for 1ne foreseeable fulu,e, other factors
R ? assume precedence, Labor force skills and educational background wh ch will allow a worke,
to function effectively in :Fe plant or of'Ice of the fulure can be considered the number one
location determinant Emerging 'actors. such as the ability to function in a team manufacturing
otw runmen', are becom ng ixreasingly irWcrlant.
a
O f O
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I 1 1 I I 1 I I i I r I I r
•
•
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® gsrdos's cal:rl yucoesv Fee ws (CSFsr
MOST OIF NNNT n mn NANO M MUM AN FAVOMW AN NMI TIE F•NMN 7W HI
A STNINA IINN'111T1fE MOTION
All of the employers horviawed sressed Cte high quality of oh-,- Uerdon area worVerce aruf, most }
prominently, Ilreslrong work ethic displayed
■ Nc inten'iewees expressed any is-4w with labcr cost s, although P. coraparalive a-vilysys of svLaries a.I the
oaunty level indicates (hat hentor's manufacturing habor wits, cxnedy the nalk•nal werage, will nol be
a marketable, wnpetitive advarstagc
4 I.aber/riarragernenl relaticrss are solid--an amlysis ol'\41.RB da(a irallcates very hmited un on actiOly
and no oaipkryer interviewed indicated a signiAcaot ;nobler, w th unarss
■ No employers domi7ate the focal employm.nl piclurc, Ike pulilie, finance, service, and mdnufacturixg
saiors are all rcaso.uLly wel!-relxesenled in Ih:: Cctiruxr job rnarke: I
s •
Umroa CM1OnWn d Crerrrerca
rkwt= 19)A
C01! f I DEN'IAi.
I?- I'1tHNasto+Caasullir;t '
>t ra.
•
Q
•
•
x,
4 LABOR AVAILABJUrY
n.
Labor availability is onectIhe most fundamental facloos in a labor Tarket assossmont A lypical measure
of labor availaoilky is unemployment roles and :te number of people registered with smployrnent sacurity.
Although these measu•sa can provide omoloyors with an estirate of of Ih3 magnitude of ova+labilily, these
are not necessarily all of the faclors that should oo considerec. In edditicn to these `ecAors P[tilFanlus
Consuiling analyzes older data and interv ews local employers.
~L
Since the ccalton selection process is often one of etrminatial, areas wi,hl an averrage uremploynenl rate
at or telow 3% have a Higher risk cf beirg elimina'.ed from further ccrtsiceration. On the other hand, Y an
area has an unusually high unemoloyrrerll ralo (above 10'ti), the oommunily musl address concerns ~
fega•ding economic stability of the area, taus Tess image, and crime rates. +gd$
[J
J
EMPIRICAL EVIDENCE CURRENT EMPLOYMENT BY SECTOR (by County)'
l~ PrelNNUlat Freeiatm
7Wa CIrMW p c4gt1lor%
Ove'all, labor avallabfilly inDeilon was rated hlg'dy by kreNewees. znpioj.l N«r 1, Nrnla
Repair
Mined to aivergse or all. our own enplovees do recruNlno for rs
r3reyson 'Y, 42,123 26.1 11.8
'We never cdverllsein Dallas papom becat.sa moral U -wr recruits come Dallas, TX 9822^,378 a.7
o from Dentcn or Iho surounding sniallcommuallles, espad ally exth of 32
town.' Brazos, TX $6,3e8 a g 9.2
1 ' We woulu not be atle to process WI of Ilia apptkcllonsit we advertised 0ENT0IJ,TX 163,313 37,2 a.l
<i lorposlllens' Caton, TX 145,946 43.1 12
VJe aye amcslly ara! workforce; only ox&aolNes land to roversa Will alrsor, TN 41,267 Me 12
comn`Uefrom tte DalW d oclion."
Kane N. 161,944 29 12.7
Vie wotfd 1 k-i to see nw•e r3mala apptk:ards to all khtcls orpsi;lons Riverside, CA 488,257 1161 14.4
because Ihoy w,d to be the nosl reUatte ' claika, OA 4c,991 37 i.5
LarinxJ -,CO 94,102 18e 10A
Vii' 'Sever, tafH Ccaufr auslaesa sawn
/Y]
11
, I I I 1 1 I I 1 I i I l l I
•
Qb
•
•
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1
Denton 's Crihwal Success Factors (CRF%j
EIMPLNUEIS IN MENTNN HAVE ACCESS TA AN ENNIMIIS IANK Nf INNN IITN INNM NITNI N
AND INTSINE IN WHIM
3
■ Me lo the availability of a strong wolkl'orce in Denton and the surrounding rural areas, most Denton
employers have not hod to tap the Dallas workforce to the extent 111111 is possible with reverse
commuting " t
■ Urban, suburban, and rural labor are readily available
ra As compared with compelilor locations, Denton has it slightly higher percentage of white-collar
employees in the workforce i
h
■ Most employers interviewed do not have to incur the cnsl of advertising to till posilions because of the
abundant labut supply and availability l
• ■ ']'here is sonic concern, especially among smaper businesses that do not offer wages at the higher-end
of the pay scale, Thal there may not be a suflicienl unskilled workforce to meet the needs of sonic local
basic employers who arc finding it difficult to compete for labor with restaurants and enter service
estahNshnrenls 't'hese employers may begin recruiling more university students. ;I
•
Denton Clraniber ul Corrunarce
November 1994
CONI WF.NfIPI
_ 13 _ PillI Faurus Consulting
0
0
•
•
•
F~
LABOR QUAUTY
As jots In lise Jailed Slates t'acame hcreasb gly Irlgftar skilled, labor quakly 'acla s beoornc morn
. Truly unskilled p)bs In both manularlurkig and offieeenYhonnrenta are rmaryrsoa-axisle(I,
even Me unskilled jobs require some skill and educa Ion. ISO 0000is being Edaplad by r-rarly
nles arO emphasiras laberoducalk•n and traiiatilk). The companies With primaNy w4ll ei y
nd low wage structures are, ii rranr cas?s, leaving Ilro l1n tact Elates,
eNusCo isr,tng closely I1ves11Gate3laborquallly for ornparries by aralyxing sistislics,
e vng educalicnel and Iraining eadcis aod, rrrosl Imr*rtaniy, Intervlew ng onpbyers.
cl va companres Nwld ralher pay slightly more for a Mph cually w rklorce Ivan local u in a
abor coal area Ihrl has a less cuahlled work lone. 'r raining quality and atteioivenessto
nies lialring neecs fa erilieal iaO Is oflen part of the In,ordives IhEI eonparr es negolhite 'or
g in an area.
r.,
EDUCATIONAL ATTAINMENT OF CIVILIAN LABOR FORCE
Empirical Evidence {by Ccunty)•
ErnFleysn, Ir Denton rro o Thal, tar the mosi part, the wcrk ON. H.s. Orai hm HS, Grad HA,M,& eery o.wre oryree
of 'he low foicoin I,e area's excel lenl. Because there Is su
i--1 much leA.yr ovaIlab e, employem Zror We tosalacl The te54 Gmyson, l'k 20% 20% 10% 8%
v caocidaltes Dallas, TX 23% 21X. 19% 6%
• "Derion oflosan oulsranding worrfolri. There isa strong Brares 1916 14°0 1816 149E 9
Q
oil lc, and very Ww'rrnover." DENTON,TK 211% 1256 22% 0%
"Even mcsl of on clcrMel sluff have a hlghe ecrxal on degree Collin, TX to% 11% 28% 1 t9E
" 24% 120E
Wlkamson, FH 2956 15°',0
"Ttlese jeopoheru cre Itye salt of the earth.'
-r Kane, l_ 28W 21°r 1 y0 791, t
u 'Hardvror Pj labor forca, espoclally norlh of IN lake, Rural Riverside, CA 25% 24016 Q% E%
paolleJumpat the ~hawoto have asteady lobwithgood Clarke, GP 21% 14% 11 d'/e 10%
® benefils. The faan well, a e enorgstlc, and are aliva wilh
Y Larllrler, 23RD 29°0 2)146 17 y0
. print[
i
acurcr. I990 u.s. Cent
i
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u.
~ I f ' I 1 I I I I .r I I 1 I I a
•
•
® Demons Craical Success Fectots (CSFs)
DENTM'i MOM[ IS A OENMT 1EIME TINE WON A NTNMi WIN ETHIC AID A
MATMI MIN E#MATIOU1. ATTAINMENT LIVR
■ Employers interviewed were very positive about the work ethic., dependability, and low turnover rate
of their employees
■ Bducational attainment in Mnion County shows the City to be competitive with locations in Texas and
around the country over 85 percent of the civi!ian labor force has at least a high school diploma and
twenty percent has at least a bachelor's degree
•
• •
Benton Chamber ut Commerce
November 1094
CONrr0EN11Al
t4 1'Hil Frnntus Consulting
i
v
f LABOR COSTS
r
Labor costs are key factors for back office operaiions in the while collar soclor and'~.r
most marufacturers, Ihoy are less significant for high profile opefahons such as
headquartors, and smaller facilities such as sales offlcas and IR&0 facilities
Published wage sla(lslics may be an unreliable measure of labor cost, where
1 slri liflcation is dramalic or where the majority of firms are hiring unskilled labor
Misleading statistics may "screen oulr" the area in the initial phase of a localion study
f lowevor, they are often used as a rneans of )udgrng overall labor costs of an area
Once a community survives labor cost screemoo, labor duality and availability become,
more important to companies Commanies no longer seek only the cheapest place to
do busuiess
'Emma will U; 11
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ILI lul I UYP 1141
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'Iqr, •ly B n,ad s~lr of Ili[ oinl.4C me oular l un nlj wayo of an oea wlip ,d rn¢doymanl in 111! nancc. lri uwa , c' and h al (stileeclon '
nr n .r avaal,d 1.
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•
•
•
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•
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OentorVs Critical Sweets Facloe% (CSFs) . .
WAGE "D MMY LEMEis FM WNR[ KIM EIMlEMMER ME EUIEMEY CIMM ME Wou 1
HUWACTMINO WUES UN SAWIES ME AT THE NATIINK AMMASE 1
■ Demon's manufacturing wage index is exactly the national average 1.0. Often, companies and their
consullants engaged in she site screening process focus on location with loss than a 1.0 average.
• CAvon other attributes, a city will not necessarily be eliminated from competition because of this
score
• The manufacturing wage is competitive in terms of other Metroplex locations but is high in wmpariso+t
with some Texas rural areas
■ Office wages are 17 percent below the national averago, a definite advantage within the Metroplex and
nationally
O +
[Ted II Chamber of C&VWa c a
November 1004
COW)DENTIAL "
- 15 - 111111 FAnlus Consulting
~ l II I r "i 1 { '
• •
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LA60R/MANAGERfENT RELATIONS
R
Companles screering COmTL"I es In the early slages of a location search som wises use
unionization andkx Slate Right-To-Work status as En initial scresn. Metro areas perceived to have
exist ng laaorlmanagemanl relat ons probierrls are sornelimes eliminates as a result, As ;Fe search
narrovis to a few oca!ions, oonlpaNos often use unto-) elect kin history to rank finalists With regard to
labor relations climate
As rates of unionization have decl ned, :t•ese statistics and even Right-To-Work etahas have de:Ynec
in importance. Nevertheless, as the orecuclivOy and'lexibilily of labor becomes more critcal to
tusiness success, acluai laborhnaragemenl relations (differentiated from union history)heve
tecaTe more important, Ir its can best beams sed Itxough ~es di ect experiences of manifactwers
and other emooye,s who rely on a prcduc:lve, creative, and flexible wo,-k force for success,
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Denton 's ejgicat success Factors GSF%)
UMg4U NAiEMENT IEIATIMS 01 07 ARMSEIY IMPACT jWNN'S ECMM19 iEMVMEIIT ;
PITEMM
■ None of the employers interviewed even mentioned iabof-management felations as an issue of concem
■ Denton's workforce is heavily non-union, with no prospect of change on the horizon
■ NLRB statistics indicate that Denton had the fewest union elections Iror number of employees of any of
the competitor localions for the period 19&)-1991. During that time, unions were ce+litied in only two
elections.
■ At least one major employer indicated (het they would be distuf)ed to see Denton mcmiling businesus
with a significant union presence in its workforce
I
• •
Donlon Cfwmber of Gommoece
NovemLee 1994
CONFIDENTIAL
Ifi • pHH k'amus Cnnsulting
•
•
•
I
Denton's Cdtlcai Success Fedora MF91 .
e
IEwen umm mm u coNIIITIINS An FAvluw FIN FU N016 KIRIPNHIT
SUMMARY
Labs LabI Lelia .
AveMebYNy Ow1Ny COW Wn►gfwoM1
Rtlellonf .I
Ofeyear, TX
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Clukf, OA ,
• + •
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Low Rating O . OHIO R4104
D •
Ur;ntnn Chambor of Ctxrxnorce
November 1094
CUNFIDENIIAL
17. P1ill Fantus Consulting
• O
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INFRASTRUCTURE
Transportation
Sites/Building ~r
Utilities
Air Quality
a
i
PHH FANTUS CONSULTING INSIGHT
FIransportallon cture describes those attributes which form the underlying foundation designed to supporl local and regional t
ic systems and growth. In economic developnent farms, Infrastructure consists of Willies (electric, gas, water, sawer !
nsportallon systems, available sites and buildings, airquahly, end ot her factors not highly relevant here.
r infraslructure•based services and products can vary markedly among regions, slates, and local areas in the U.S.
oad. Thus, those firms with, for example, heavy usage rates, may screen areas based on cortaln Infrastructure
t the outset. Normally, however, these costs are ovalualed as part of the total cost of operations.
key In the silo selection process is the presence, availability, and reliability of Infrastructure than will support the needs
usinesses raw and Into the Mum. Locations with sound and modern Infrastructure Thal evolve In response to the f business ure more likely to be successful in the economic development
marketplace.
i
• Empirical Evidence
Interviewees generally gave Donlon high marks for Willies and transportation, but almost unlversatly expressed concern
abuul the lack of evaWable bud~ings for prospective new businesses. There was also signllicanl concern expressed ;x
about inadequate preparation of available land for building,
'With such good access to DFW Airport and with the Melroplex moving north, we saw land here as a good hotdlog.'
• 'Road network near Munlripal Airport must be expanded." •
'Economic development would tare a fat boiler if utility service was In place M undeveloped sites.'
Having a local airport for executives to fly in and out of is a major plus."
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omen TNANSM>ITMTNII mTNRES mm imun sme, m, won NIE#W1101'1116ASIETS
fEiIrEN
!M THE cm a IaATINEIT SPEAK IN TOMS IF THE AlIANA/ILIT1f IF 1111111146 I N111
WES
~n
■ With Il,e meptin.n of :lie raced nor batter andim more rcaJ in Iho Airport viehlky, Ih:nton receives €-i
vniLe'9ally high ma-ks for Iha ttansportalior access it otlera. Thls is a powerftr'. eorrpotilivo anvankade,
1'1
a Virtually no ime(NIm a even sdd-exted l:re Wilily infrasltuctute siluction and none indicatzd '.hat
water, wastewater, solid water and eleviric savices are a -)tob.err. Utility costs and setiice ere
rompatidvc.
■ Donton's lack of fpeculalive b0di-igs to, ?urchtsa or Occupancy was cited as ofen as any olbei single
factor as a problem for economic development
• Iy lie lho coy can boast el'a rarrdacr of large paccets Orland suilablo rot difl'arenl ki:rds of
development, the foci. Thal many at-, not fully carved by ulilMes ara) havo not been publicly priced limits
• their economic developmert valuo
R.
• •
- - -
JMrn Lrionl~ of Cernrnar:e
Vovornbtr 1VM • 11
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1
. ,g. NHN rantus Cnnruhing
•
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•
•
TRANSPORTATION
In today's global marketplace, a location's competitors for investment can be Iound around the
world. A location is well•slfualed when 11 is able to access and serve domeatlc, and Increasingly,
foretgn, markets. After geographic localion, and its allendanl Iransporlation costs, the key
transportation determinants are the physical infrastructure: ports; Interstate and highway
networks; multi-mode Iransportallon facilities; and rail facilities.
At the MSA level, screening typically occurs based on the existence of these Infraslruclure
ellrlbutes, At the focal level, more detailed intormalion Is analyzed, such as specttlc highway I'd
and rest connections, 3
r-
r
EMPIRICAL EVIDENCE
p Donlon's Key Transportation Features:
• Central U.S. location
t
• Proximity to DFW Airport and Alliance Airport '
Donlon Municipal Airport with expanded facilities
'c I Posllion at Intersection of Interslatos 36E and 35W, as well R'
as other major arteries
Dally freight service from two railroads r
•
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I]naler'a CralaM 9~oesr reobsa ICSFa). _ MM AKA aOKrrOMMAK
a With its ctaNniNlon orIIr, highway, and tell accessibility, Derttor is an appca;lsh location for
busiamaes wlih algrdtlcant transponatian nneds vsd is poised to play a significaml role In NANI'A-
related trade
J
a While Alliance Airport, with its stato•ef the•art intemralal facilities and high•gtAlly devrlopod '
industrial pa cell is a competitor with Damon, prOKimity to it alsn oli'en alfiFOCanl advantages to
exl6ng and prospeuivo Dertlon businesses
a rho only issues r ked by intomieweea relate to the need tit more, Cr eKpcnded, roads in tEe ricinLy of
the Municipal Altporl, aec the need to ensure that developmm: slang 1-35B does fKA restsh in
avorNUI,-v ing the capacity of local Irsneponailor artcrles
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rwtnwClwmbarul cwrnwes
Nwmbae *04
CONr OEV IAL
I9 • PHN Fantlss Cansullla=
•
•
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SHOSIBUIli lags
-NEW
The avafleblllly of ready silos and bukdings is one of Iho mosl crihcal factors in the locallan solectinn process. vyhilo silo and
building evailabllily is lypieally screened al thu local lovol allor Itie soaich has boon narrowed to a handful of tocalions, firms will
unique needs slid specllicatiens may make an initial wean basud on aveilubillly, l hus, this reprosonls a critical fnclor in dosing
the deal and, somelimos, In making it successfully through the Initial screen,
kogions end communities must be prepared to ncconunodalo now tnvoslrnenl, loduslfiul silosrpaiks musl nieel the following
crOaria, among olliors, to sniisfy rnosl expandinglrelncaling corporator invest nonl needs:
Appropriate slzn and expunslon potential !
n • Controlled ownorstrip and willingness to sell
• Ulrocl, high-quulity highway road access
r
ArAhly to put large silos together (i.e., 40 acres or more)
1 Satisfactory topographic and subsoil conditions, and surfuce dralnago
tree of environmenlal problems
Proper In Wilaf zoning
Full lodusINRI-level utikltes near (he silo
Compatible surrounding land use
o Established asking price And sale leans
EMPIRICAL EVIDENCE
• i Virtually all intetviewoes expressed concern over the availability of ready silos and buildings Anothor factor
impeding development of (ho good supply of undoveloped Innd and hampering marketing efforts is the lack of
established asking pdcos and sale terms. Several developers and business persons expressed doubt that large-
scalo development would scion occur even if more toady silos and buildings worn accessible.
"Strong need exists for a t lgh•quallty Industrial park developer) by the city of private interests.'
® 'Economic ,fovelopment would benefit from utilities being In place up-front at undeveloped sites."
"While If would be a positive factor for Denton to have more ready sites ovalfatrle the fact is that too much infill
exists bahveen Dallas and Denton to make this Iho next logical place to develop In. Maybe another 5. 10 years."
"Cannot pet a realistic asking price for some prime land, while ethers are simply asking too much for on acre."
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Mn~w'e Crltkel suttees f e~icre lC9Fs) .
IIN in DEAVV IENT Ii RINERH BY ASMITAIE IF NEARY OTIS AN Wit 1111LU NISI NI
EATAiUM AE~ HIM FIN MNIM IF 11I MMAKE [Ail, NO IN M IINK W
OIS111I1E 11ML SIM IIlM 1N TE>E ' EI M IF 11TNIPUX AD=" Nli WW MUM
• Denton can eHi1r acres of available land that, for the mast pill, Is not rirlfy served by waler,
tvAW0WAcr, Aral dccldc uIJitlos s is a deldmeno to rot) at expandirng or reklcaling bus Iiessev I11at
need to belor opar.tions'nu7edialely. Derlon Is no cur-endy prepared to ammrmodaie rseaningfta
now inve.siment.
■ 'I ho ecoaomiz davelapmerr nwrketing effor is severely orippled by the ci fNculty ol'oblasdrg any, kl
more rulislic, asking prim and sale tervu for sites A roccrd listing of availeblc indusrral sires
suggered Ill fewer than half of Ike tvailoble sites ud eslaWished sales prices o' whirA the City's
mmomic tfevelor.menl irofossloncls wzre aware,
a No spec boiWings arc available or planned
• + Pavan if riaterous mi nble sites were fblly sc;ved, or even I's number of spec buildings Nero available,
rapid commordal developurenl may not uucur in P)enlon due to the avadebility or significant
developable puf(Js in e'oser prom pity to Dallas, Foil Wort[, and DFW Airport
Uerlan Cbrmber arCornnerce
Noverniv 1994
C ONE bENI rA_ t'
2U • ►il1! panius Cnorulting
• 0 ,
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UTILMES
a
In today's ecomnic development environment, the avallablilly of adequate
electric power is seldom an Issue; rellabilly and coal we much more
algnlfloant: Elecl+ldly cost Is the ullllly cost which can most often Influence
the locallon deolston. For high eneroy users, electricity can equal live to Ian
percent of more of locallon.dependant operoling cost. Except for very large
users, high slectriady cost prubably will not dlasuade a site seeker by itsell,
but can add to a decision to look elsewhere,
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IEMlIM'x /TM1TT =VIC[ 01 NITS NE CdllftTlM AND N NT AMIEMIEif AfFICT TO l
ROM VEUTMI EII UNWIi IF TIE GIMPAM MITMMM
u 11,11hy costs can refxese It a significant portion of owrall opersling cork, aged are impoitar,l to
altracling nesr belinessel. 110avuve1', vlrtuslly no concern wss expressed by interiiewuce about utAity y
costs of availabiiily.
Managertlcnl of Demon's utilities electric, wr.stewator, w4ter, al-W solid wesio has beat of high
qusiity and sew developww st Ad no: ptesont undue burdens on the syli ms in place, s resuh o; ar.
effe:tiva planning process
s ihtnlon offe•s strong telecommunications Aervice, inckeding a fher optic network availabe for lie-in by
businesses
e While the state of its atrrenl urllily serv,ces leave tknion no strong portion, a number of inimicweev
susgested tkal Denton shotAd be extending services to m.cxe uledeveloped parws of lard to make the 1
• City mane allrsellve to pulentlal rew investors
Donlon Ctomber Cl Commeroe
November IM
w
COUF[MW14t
2I /I1N Aanlur CoaMdlirtA
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AIR QUALITY
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Large stale manufac'wng chen~a reg: aryex uda all non-analnmerd areas
from caneideratlon allNether, rather than face the aeso:latod regutslory
compiicalbns and potent al controversy r
Vr
Because rnost olr poilullon oomes from vehicles, federal reaulallDna for
"Serous' and'Severe" non-altainrent wean con effect even large non• N
manufacluringeroployarn, 7hereforeachieving aQelnrnentbeforersachLig
These evels Is absohAely o~ltlcal to IuV4errneeonomlc vllalky.
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narAonY CiUCalBucoera Facims ((:GFS),
AN "UIYV Incas HAVI TgE rOjMIM1 TO IM70MI WRI KNT8p'S M111UTV TO ATTU$T NO
RETAIN USIMEN
■ 'I•ke DAIlaVF. Worlh Metro a' ea, Much iaclt.des Ito counties or Dallas, '['arrant, Collin, and ❑eil"I is
clan Y1ed by 1ho U.3. f?PA es a "Moderate NomAttrirctxint Atca " [)anton Coanly is inclided in llsia
1
designaf.on. '
■ he North Texas Clenn Aii Coallaio7 (NrCA(t) Ills developed an approved State lmplementa(ion Plan
R
raid Initialed strateaks to reduce emissions and ac.iieve Aleinment.:)ospite rour cuvedaneos .0 1991,
ozone levels nave alreacy teen reduced, anc 11te I(cgkxul Fl'A office expects accelNable levels in 1995
as autc• em scion telling, vapor recavety, and other slralegies arc introduced, Additionally, NI CAC s
clTo.five leadership hat created s veoy strong reWicnship v,'ilh Cie ??A
■ r6lure to achieve and ntairtai.i good air qunlily by I VA can lead to mdesi3nation of the 1)ellat/FI.
Worth Mettc area. as "Seduus" in 19% or 1991. Federal penalties fer a "Scriois" dcsig•ut.on incluc:e, i
e 4 Adding B cuj%l ex to the four now kiJuded in the Moderate Non•A(lainmenl Area
♦ Ragc4ring otfso•,s fm ary 5o -ii, n of 50 tonsiyear cr any expansion or only 25 t(.,rruyaar, at a ta.io of „
121o
a t g6ring clean Fool s',rmt,.86 Ica any vehicle Iled of 10 vehicles Or more (including nsn-
manuFaclurer's flms)
♦ Requiring a tur(hu 9% reduclion n ozone ;evela Dort the 199C ktvel. 8
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VowmOer iM
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MEFOll WMRUTIM IiEW A WXM MAi TI PKUTIAI MMM M INUTIRI ,
SUMMARY
11M~pMtN ow SIIfuBYNdNIe~ UMIIw AN OUMNV
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("i I+W o, W110%MIWMIdObr% M. WIROOA111"607 lk#CW4uy N.S") •
Ilenlni ChAI>A6ei of Canmarea
J Newm~e 16n.1
CONHOfNtAL
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2, . PITH Fitful CLmswk+ng
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Oenton's Crltical Success Fadon (C$Fs1
REMTOM IS STRATECIUM CITUTO RETI M THE NATINI MIST ACM MiAMRACTI M IR
FUNCT K HON AM AMR 111MG8, P$r MI O FOR RIOMIFICANT OPMRTINITO IM THE
TUNAMIITATION AM 11STNRNTION U MIS
■ P1I14 Fantus Consulting's experience indicates That the majority of searches for manufacturing sites are y
now conducted in file area sharied on lite facer page, Although the area extends to a point within reach
of Iknton, the fact remains That ilia city is not In the area
• Demon's location between the manufacturing search area and Mexico could nicely position it for
NAPTA•related growth. Iknton Is within one-day trucking time of the entire manuNcturing project
search area and it also has superior north south linkages that make it a nahtral distribution point for
products being shipped to and from Mexico.
rr Another competitive advantage is proximity to DPW Airport and Alliance Airport. When combined
with highway and rail accessibility, these assets give Denton a superior profile for distribution and
transportation-related servicos.
a Denton should be attractive to non-manufacturing employers because, among other things, it Is located
in a state and near a city (Dallas) that are hot spots in dte office location market ,
Oenlwi Chamber of Cormnercu
November 1994
COr*UNI IAL
-24 • PH" Fantus Consulting
i
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•
•
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Drlto►'t CAICS1 SLCCa►1 F*CIOU 1CSro
1•
1EN In LMNIN a A GOWEMM ANYANTAOE MI ATMMI CfI1TAN WE MAN An
NANWA6IUM BRAIN JIMIMBI
SUMMARY
At I"dInAw As(m"ll AN 1111a0IA IM .-t
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DENTON,TN
Co NA, TX
VA01wa/n, IN .
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Oenton Chwibw of Comm/Ice ' - - -
NxenWriH4
COWDEMT A.
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s YHH Favout Cmmilling
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•
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WAGE
Business Awamess
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iL Reguletory Development
EnvironexM Program
Don'on'a IMA$*
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M0001011's vlk all .4YCC)O PiCfelf (C9PB) j
DEN en IN IMIT INK PIME> S A 1AMIM iN MINMW OEVELIM1EMT IN M
r Subjective i :rages area koy economc development screer.lag factor, often eliminating a Imari .n, .l
wk1her stare or city, front consideration before other mote positive factors are consecered !
♦ imager are often based on certain easily discernible Sealuret :ha: serve to obscure other area 'r
strengths
♦ Images my be der.ved from historical :nths Nit often do rot match today's reality
• Denton lws i nAdti-Vacated image problem Part or rlxs prohiern is a fu-i eEon ot'geo6raphy; the other
ptrertm,ena impacting negatively on the c ty's image are very notch within the copabilty of the city to
resolve, The key issues are
♦ Many view Denton m an attractive town in northern Tum, near vt( separtte from the .V.etroples
t!ut for various reasoes, it rot destined Pon the lypu of rapid growth that has ocru-rrd in many i.l
areas or:be Metropfe),
;
S.~
A D.,-spite the perception of many in Denton Coal the City ix, or could be, the third ir4)tx
• jtAseiction in tl.e Metroplex (Lbe "Am"), many Metropks developers, busiress perscm, and
redJents do not sao Denton as a logical er.tensien of rwrl`twsrd growth Li the hear tam, lliay
see it, ;urrcriily, es an appropriate home for selc.,t nice buskxsuea aryl housing devekipnwnis,
• •
17enlnn fFaetnbet ~f Co,txnsrce
M,rsna»t 19f4
COt'Ir'DENilN.
• 2G • PHIL F'snus CensvMlnR
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Denton's Crabal Success Faclore Csrs . .
IM MS MOW ME NIESERS N IIIIIIER 18 EOMMMC IEIEIIPMEM1 UNITS ICtl11'II
• In a 1997 survey conducted by the Survey Research Laboratory at UNT, only 6.3% of i
G
Metropfex respondents indicated that they thmlght Denton was a "City in the Metrnplex."
• In that same survey, only 4.9% of Metroplex respondents gave any mention of Denton as a
place to conduct business, below the number of responses for Las Colinas, Addison, and
Mesquite
• hurtlrer, PI III Fantus Consulting's interviewees as a group evidenced a "schizophrenic" self
image of Denton there clearly exists indecision about whether Denton should distinguish itself
from the Metroplex or seek to solidily identification with it
• Denton is viewed by some segments of its own business community as "nnti-growth" or "anti-
business," a perception that, in lulu, has now become shared by some outsiders
• The schism between City government and some elements of the business community is real and
• results from a number of things, including miscommunication between the groups and, perhaps,
difterences in how "economic development" is defined
• TIds rift, and the bad feelings it has engendered, have helped feed the outside view of Denton,
not too widely-held al present, as "anii•business," Worts to merely cover-up the problem are
• unlikely to prevent outsiders from learning of it. •
Renton Chamber of Cornmerca
November 1994
CONFIDENTIAL
•v
-27 - PIIII Fantus Consuhing
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• The City regulatory scheme.9 viewed by some, including synpathttM ele meets of the btnium
community and goverunent off6als, as overly hureonu~tve and slow
• The ooe soutor o."Cily government Ihat is subject to the most oiticism is tltc planning aryl
zoning funeticn, vvlsic:i his begun addressing the oonpl'aints by expeckdrgce.hsin proceises end
incuWtmg a rnose c.ntoinor-friendly orieatatior. amorg i:s profossiona. slaff
♦ Demon's econDaLc development ofrort, while a reascnably slroq "Iraditiomi" program, rn•y not
be, competitive, wi:h the higher-powcrte programs cfcompetitor k>zations
A Denton's current economic daeicpmenl eflbn is unlikely to produce results ,bar meet the
expectations of key mowers of TheDtnl(,n community. The picipram is essec:fal:y readive;
f ; while etreetive at prospect handling once Wolon makes it to a Anal scrtvnir.g, the prograw has
io~
cot beer, proflolant ut Iargoting and allratliag intcromed businesses.
• F ♦ The tco:somic development ofrott has nol successfLhy eslo)[ cd a "bmnd•imsge" I'cr Demon
or Foskimud the City as a Yusilablc locsti on for business wi'hin Iho Nfot:oplex
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TAXES - CORPORATE INCOME AND PROPERTY
PHH FANTUS CONSULTING INSIGHT
Corporatp lax burden often recoives disproporlionale emphasis compared to its relatively small impact orl actual operating costs
influence business sueelss throughWe sp od with nwhi h permits talc issued, among other things.
to qua Lily, this rrecopliv ly are
Corporate tax levels, along wilh overall tax burden, may also be used as a partial measure of the effectiveness of public sector
rnanagement Very hlrh or extremely low taxes, in c(imbination with parcowed detorioialion of public services or inlrartnictwe,
may iodicale a history of unwillingness to pay reasonable costs associated with government. Ullimalely, such al) environment
leads to higher costs eithor Through inefficiencies in foquoed services or through higher taxes when disinvestment can no longer he ; .I
ignored
This is because they loo, are seen as critical
balementas amenr o moslausedldevelto,l business incentives
-
9 th Pment
to Wp yorriers lanatol ae hi nd ofalv g
' Property lazes are usually the easiest - and often the only - cost a community can directly reduco l ax abatement con also
make a marginal but decisive ddferonce In close location choices
1 I operly taxes are the most viable indicator of local government quality and fiscal health.
• For specific lypes of companies, proporly taxes can be a significant cost (e. g. an inventory tax for warohouses, or tax on
machinery for cash-poor, inslrumont-rich high-tech stadl ups).
44! CT EbfiBiTf_,~,~l!rl~i'd sar i~
- Texas Wo lax on `vot taxable car plus "
oflerllvely eriiials federal l tillable llcullln ..1
Calitolnin 9.301+ applies to "net rnrunlr: ' nrlecilvely equals
LN federal laxable lncorrle
F'M eN I "
IN Cnforado 5% applFed to "not Incomo ` elleclively federal
laxebinincorno
O 11 M k ' 1
Georgia 8°/, upplias to inumme allocated to Geargur
6 Wised on properly and sales also upplles Net
r l Milli Tox of up to $5,000 O
ui nv .I,i
„N I ennessee'. G% excise lax appiles to "tret oarnings."
clfectively f odeml taxable inwina
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lluprce I11044 -014-e Mail
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0 The image ofa ata•.eVIocahty's tex situation, ss opposed to the reality. is c-idcal in the lacariuc
decision making process. Compaues often perceive'foxas oa a stale without a corpotalo income Isl.
-Aen, In tlaG, the',M tax on "net taxable eared oLrslus" is eXectively a corporate ircn,te last, in
any avant, this tax is significantly krve: 'ha, in eacI or :be co,spHitur stares identifie&
f ■ Texas remuos ore of only four U.S. states which do rot lax personel intone. This nuy appeol to
corporate oxeculives And to companies for which prol'etsicnal recruiting is importast,
v Texas now allow; - and all of Demon's key lox dlst, acts hsve tdopied the keeport exemption,
whlei exempts certain business personal property destined for oul-ef sale shipmerd fYom property
tastes. THs thoukl greatly enhance the city's canpwilivenuss with nort•Texas kwations Ibr
wholesWeldiatriaudon busineesaa.
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As the nation's economy matures and the business location decision-making process becomes less
dependent on classical tocaffor deterrilrw vs such as access to -aw rrallodals (for traditional
manufacturing) or rnarkels ;for consumer products), new location decisions a•e often based on relatively
inlang ble qualily of ife factors aucf as housing costs, recreation, cullural amenities, crime ralas, health
care, etc.
"Ghtality of Life' a Ileploaliy definee as Iho sum o' up to ten fa,,.lors elating to lifestym and non•workplaco
env ronow it WN& lac.cra are nduced, and how ti"y are weighed and assessed, vary frorn person to
persor,, making any alto mal to cf'aracIoriea gjalityof life risky.
:r;
Since each comrrxm ty is a oundle of different char acto9sUes, which may not compare readily,
comparisons among locations are oven loss raliable, except n the conlext of specillc preferences RY
this roeson, PHH Fanlus does net include a suilmary page in this seelion of the Report.
f toveriheiess, companies and the individuals they employ do consider those factors sorlousiy. Quality of
L In factors typically came into play once the soroening process has boon nerrowoc down to finalist
;ornmunities or MSA9.. Thero'cra, fl s irporfanl to Idenlity Iho key QLalily of Life slrcngths in each
com•runity and present them clearly as part of any p•om lionel effort.
Rating Climate
A PHH Fonlus survey of recerl MBAs found 'Curate" to be khe loading c•l:erion for personal
local ion prelerence. Out the'preforrod' climate was almost exactly divided antorxg "warm dry,'
warm lemperale,"fouf•seascn terpersto " and "mourtaln" Amosl evoryU,S. location
firs one of these climwc profiles, each a' which appeals to abcul a cuaftor o' Iho survey
popul0on.
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■ Den-en has many features that, while inelevanr or unappoaling lu some, can bs as.icis in uluae.tirg end
rclafning business
t" ■ Denton'sctxl of hying is attractive; relative to other localions in the Metroplex and to same compel tat
locations nationwide
a The preserce of The mcjor universilics is a majur p.us, offering Ike public cultural and oducslional
resourc,s unavailable in o9rc7 rori"vin ies of similar size. However, imexviewem recd +n: in marry
respecb, The city has nor leveraged the univc'rritier w the fulleA esteot rclsslblo,
` ■ Denton is w.dely Perceived by current residents as"a good place to raise child:en," allribuled to,
among Am things, its low crinxr rato and good acc.ss to recreational opporturrifies
■ MmIun does lack some of tare amenities that reioce(ing bdsinesies often prefer to see, such as x variety
• o: quality restauranly and :lo(els and a clioice of perumal anal businesi service esLhlisbrtenls to
palronixe. 'rho absence or"liquor by the drink" toes not enhance the C!!y's mage as a mod.,m
-arnrmmily
a:
1 This {yminl is bolsieree by the finding:, of rho UN 1' survey cited :artier. Ucly 1 A'/c of M&OFlex
resporxlents Icentif7ed Denton as n place to go G>r crtert iiarnenl, 4,9% as a place to go
shoppin3, rrd 5V) as a place it) go or.l to ual These frguras lrlace Denton below Oarland, •
Lewisvide, and Mesquite, alrmg ctlwis.
Deilme Chammer of Ccrnmttce
Norernber 199,
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■ The c vie effort w besutife Denton and ill galowsys will enlrsnae lung term "curb appeal"
■ 'I'ha p rblic srchonl ayslern is Mowed as rets~nrbly strong, roxiving mixed rsviews from intarvieweet
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• Soma ware very plevwd will the schools, noting Ism they olTer curdmlar and extra-u Heulir
progra-m unavailable in )"Mims in which thsy ad previously resided
• Many in.erwiowees believe that Demon's se-vols compare 'amably wish other Texas communities
but are concur ned that standard xad testing scares arc not ac high as dentographlss suggest they
sh:sakt be
• An oRec-expressed concern is that failura to expand Lite tax base could result in ar inability to fl:nd
the schools at an appropriateloval
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Key shon9ths Ney Weaknesses Nrete* Opportur*Ies, and Slraleglc TMeals .
Nauman
Because of its geographic location at the northern tip of the Melroplex, Denton should have the luxury of determining tow it
develops, as opposed to being overcome by the subin ban gtowlh ultimately heading northward from Dallas. Denton offers an
attractive university environment, with the attributes of a small town and access to all of the resources of a major metropolilan
area.
ICJ
■ A woMorce that is refiable and possesses a strong work ethic
■ A high percentage of employment in the public sector providing relativo stability in the economy
7 ■ Office labor costs that are relatively low compared to the national average
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• o ■ The ability to draw ftom a 5.6 county area, a metropolitan area of 4 million people, and bolh a rural
and urban workforce
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a No significant labor-management issues
„ penlon Chamber of Commerce
November 1994
COWMENT1AL
-34 . P11111 Fantus Consulting
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Ka Slrenglhs, Key Weaknesses Strategic Opportunities, and Shah& Threats
Infrestructwe and Location
■ A geographic position likely to reap the henefits of increased NAFTA-related trade
r A transportation infrastructure that is a major competitive advantage good highway access,
proximity to DPW and Alliance Airports, Denton Municipal Airport, and a cenlral U.S. location.
r
a Competitive rates for power, water, waste water, solid waste, a well-run utility system with the
capacity to absorb growth, and an existing fiber optic network
r A position in a hotbed of white-collar office location activity
QueYty of U f
A relatively low cost of living, and a solid public education system
v The presence of two major universities and the training, cultural, and recreational resources they offer
U
a An ongoing collaborative effort to re-de0ne Demon's ecr nomic development program Thal signifies the
community's awareness of the need for enhancement
' 71Y
w ■ Freeport eyemption and perception of Texas as a low-tnx state
J c+
t)anionChamberof commerce
November 1994
COMFfmmiAL
75 - PHIL Fanlus Consulting
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Key Strengths Key Weaknesses Streteglc OppoRunitles and Strategic Threaft.,
KIN1NEANMESSIS
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■ Costs of ntanufacturing labor are high enough to put Denton in jeopardy of not making some screening
cuts in corporate location searches
Infrrntruclure
■ General shortage of available buildings
o Unavailability of prices for major parcels of land, a significant percenlage of which are not hilly-served
by utilities
F : v Lack of high-end housing for relocating executives
r Narrow lax base as result of heavy presence of not-far-profit sector and substantial residential
•
orientation
F-
u Limited roads near Municipal Airport
V-
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• ■ Outside most active national search area for manufacturing locations •
Denton Chamber of commerce
kovembar 1994
CWIDCN11AL
.36- PITH Fanlru Consulting
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UV WMINUM (NMI
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■ Economic development effort is not well•suiled to meeting expectations of some segments of 1he
business community
s Lack of ott'ective communications between city government and certain elements of the business
community result in misunderstandings, growtb of perception of Denton as "anti-business," and C
missed development opportunities
■ Perception that Denton is too far away from Dallas to be other than a "niche" location for some
new businesses and the development of tesidenlial housing
Am11tr 01 Life
ni 17
s Llntited high quality amenities, such as restaurants and hotels
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DuMon Chemlx; of Commerce ~ ~ ~
November 1884
CONFIDENTIAL
.37- PHR Fantus Consulting
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Key Swennths KeY %VrshnessA Elratealc OPPOdUl llns, and fAl lite 1hreale
VURNTmn
a rlrlufo to decide whether the relationship with the Dallas MSA is u posilivu rr nebative rooto► for
economic development, and takiag xpFxopriale rction this does net tequiro a em-iime, bluk/wttue
cecision but eslablishmenl ors procom Nil enrures the eccrxrnic development effort is '.n sync w.th
crxnrnunity sentiment
rr Coclin.fsl creep of the Melroplex north., which may ullim*Wy dmeraiine haw Derdor. develops unless
the comrrw* is proactive in dednirrg aoc cadrolling Its growth.-while there is probably a five to iel.
year cushion before the Mevoplex "arrives;" concrete action to poaitim -he City is require(, now
before en undesirable .hairs ortvents is triggered
r Available infll tctween Demon End Dallat may.- mlricl :he City's near-lean, high grcwt.ti potential.-
knowlec'gesble, 1evelopmenl pro'cssionals suggexl ha: Denton fray nal be in their plans, even if
r Wbstrwure rxproverwrts uncut irrmediately, tbt erxriher 10 years
• ~t ■ An econorruc dove opment effort that Is rdativvly unJerfurded, I'aniloJ in scope arse, pencing some
r comersus, not cnlibrated to rneel the comrrkimly's oajectives-•Ihe I" OfCf%.-t ragcireJ will A
W dictated by fie nalwe eflhe rerolls sought
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tflARM TMYATS
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■ Failure to decide whether the relationship with the Dallas MSA is a positive ar negative factor for
economic development, and taking appropriate action this does not require a one-time, black/white
decision but establishment of a process that ensures the economic devoloprnent effort is in sync with
community sentiment
.J
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r Continual creep of the Metroplex north, which may ultimately determine how Denton develops unless !
the community is proactive in defining and conlrolling its growth--while there is probably a five to ten-
year cushion before the Melroplex "arrives," concrete action to position the (lily is required now
before an undesirable chain of events is triggered
■ Available infill between Denton and Dallas may restrict the City's near-term, high growth potential--
knowledgeable development professionals suggest that Denton may not be in their plans, even if
infrastructure improvements occur inunediately, for another 10 years
r An economic development effort that is relatively underfunded, limited in scope and, pending some
F consensus, not calibrated to meet the community's objectives -the level of effort required will be
dictated by the nature of the results sought
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Donlon Chemher of Commerce
November 1994
I
CONFIDENTIAL
, • J9 ^ p}llt v rrnlus Consullhrg ;
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r Continued miscommunication between city officials and certain segments of the business comtnundy
could stifle devdopmenl and perpetuate the view that the community is unf}iendly to business--public
sector and business leaders share ninny of the same wncerns but have diftent approaches for dealing
a
with them
■ Over-emph"s on obtaining manufacturing investment at expense of other kinds of businesses--because
of the city's location and average wage figures, the main thrust of business investment pursuit should
likely be in other sectors
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Denton Chember of Commerce
November IW
CONFIDEN71A!
40 PI IN Pont us CanaulttnQ
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REQUEST FOR CONSULTANT PROFESSIONAL SERVICES CONTRACT
ECONOMIC DEVELOPMENT;
A STUDY OF COMPETITIVE MARKETING FACTORS
l
AUGUST 1994
• DENTON CHAMBER OF COMMERCE
414 PARKWAY
DENTON, TEXAS 76201
•
41)
i
THE DENTON CHAMBER OF COMMERCE
REQUEST FOR PROPOSALS
ECONOMIC DEVELOPMENT,
A STUDY OF COMPETITIVE MARKETING FACTORS
The Denton Chamber or Commerce, in partnership with the City of Denton. Texas,
requests proposals for Economic Development Study of Competitive Marketing Factors, The
purpose of the study is to better define the unique opportunities Denton has for economic
development and to identify the marketing factors which Denton may adopt to vigorously and
successfully compete in the recruitment and expansion of major commercial and industrial
projects. including distribution, quality manufacturing, corporate headquarters, and research and
development.
Proposals will be received in the Chamber of Commerce office until 1:30 p.m., August
• 15, 1994.
J
For additional information, please contact Charles W. Carpenter. (817) 382-9693.
J {
1
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PURPOSE
The Denton Chamber of Commerce, in partnership with the City of Denton, Texas, is soliciting
professional consultant proposals for an Economic Development Study of Competitive
lvlarketing Factors. The purpose of the study is to better define the unique opportunities
Denton has for economic development and to identify the marketing factors which Denton may
adopt to vigorously and successfully compete in the recruitment and expansion of major
commercial and industrial projects involving distribution, quality manufacturing, corporate
headquarters, and research and development.
The Request for Consultant Professional Services Contract is being issued by the Dentcn
Chamber of Commerce, The contract will also be executed and administered by the Chamber
of Commerce. The project managers will be Charles W. Carpenter and Betty McKean.
The study will be guided by the following goals:
( 1. Identify location factors;
2, Identify expansion factors;
3. Analyze how Denton stacks up;
4. Analyze how public bettor stacks up;
5. Analyze how private sector stacks up;
6. Analyze Denton's marketing programs;
7. What should Denton be doing.
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SCOPE OF SERVICES
` The Chamber and City mll provide existing data, reports and other information relevant to the
consultant's responsibilities under the contract.
The Proposer will describe how he will perform each of the items in the Request for
Consultant Professional Services Contract services listed below.
1. 'W'hat Factors Are Used By Companies In Making Location Decisions?
2. What Factors Are Used By Companies In Making Expansion/Retention Decisions?
3. How Does Denton Stack Up Competitively?
A. New Locations
I. Strengths
2. Shortcomings
B. FxpansiotiRetention
1, Strengths
2. Shortcomings
4. How Does The Public Sector Stack Up?
A. Analyze Denton's master plan, development plan, policies, procedures, land use,
zoning, financial and nonfinancial incentives, tax and fee structure, ittfras"eture
cost sharing policies, etc.
• B. This analysis should be a comparative analysis to other cities to whom the
Consultant believes the comparison should be made. The ltnal decision as to the
cities in the comparison shall be made by the Chamber and City.
C. How important are the items analyzed in 4(A) above to location and expansion
decisions.
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5. [ion Does The Private Sector Stack Up?
A. Analyze the attitude of the community toward development; land prices;
adequacy of property (i.e., its readiness for development, zoning, land inventory,
building inventory); responsiveness and attitude of prime site owners to
creatively work with prospects to close a deal, participation in financing; bank
industn creativity, flexibility and willingness to facilitate financing; real estate
community and its handling and accommodation of prospects; etc.
B. This analysis should be a comparative analysis to other cities to whom the
Consultant believes the comparison should be made. The final decision as to the
cities in the comparison shall be made by the Chamber and City.
C. How important are the items analyzed in 5(A) above to location and expansion
decisions.
6. Assessment of Denton's iarketing and Retention Programs
A. Assess the structure of Denton's economic development effort.
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B. Assess Denton's marketing efforts, and analyze their impact on attracting major
! commercial/industrial projects in comparison to other cities.
t C Assess Denton's business retentioNcxpansion efforts, and analyze their impact
on retaining/expanding major commercial/industrial projects in comparison to
other cities.
7. Whot Should Denton Be Doing?
A. Make recommendations.
B, Recommend systems and tools which Denton can implement to track the success
of its economic development efforts and a cost to benefit analysis.
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8. l a tervlevvlQ u estlons
The successful Proposer must be available the week of August 25, 1994 for interviews
and to answer questions.
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9. Conduct Study AdvisorT Group Meetings
` ,A. An initial conference with consultant will be held to ensure consultant
understands scope of services.
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B The consultant shall meet with Chamber and City in the early stages of its work
to review and clarify the thrust and scope of study.
C. The consultant will be required to convene and conduct any necessary meetings
with appropriate Denton Chambe of Commerce representatives and City of p
Denton officials to solicit commmts to assist in the development of the study. 4
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10. Public Briefings/Presentations, and Written Reports
Public Briefinas presentations
' 1'he successful Proposer will be required to submit a PRELIMINARY
REPORT to the CHAMBER and CITY COUNCIL on or before October S.
1994, and a FINAL REPORT incorporating any necessary changes and to
conduct one Briefing, Presentation on the FINAL REPOR'T' to the CHAMBER
BOARD and CITY COUNCIL on or about November 15, 1994. The
{ presentation shall be up to two hours in length, The contractor will provide all
briefing/presentation materials to include handouts in 8 112' X 11" form.
Written Rcf,, is
Preliminary Reports
" PRELIMINARY REPORT' must include Task Elements ~l through d_ as
mentioned above, Fifteen reproducible copies of the PRELIMINARY
REPORT shall be presented to the CHAMBER and CITY in 8 lit' X I I'
format.
Final Reports
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' FINAL REPORTS must include Task Elements 91 through 46 as mentioned
above. Fifteen reproducible copies of the FINAL REPORT shall be presented
to the CHAMBER and CITY in a loose-leaf notebook format (81/2" X I I").
All final documents shall be prepared on computer floppy disk( s) in a form that
the CHAMBER and CITY can use; i.e. IBM Compatible. All final documents
to and computer disks shall be submitted in order to fulfill the requirements of this
study. The final product and any maps ap.d/or attachments, must be submitted
in camera-ready format, suitable for reproduction.
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SELECTION OF SUCCESSFUL PROPOSAL
The consultant professional services contract shall be selected on the basis demonstrated
competence and qualificatiow outlined in the scope of services to be performed at fair and
reasonable prices. Contract award is subject tc, the approval and funding by the Denton
Chamber of Commerce. CHAMBER and CITY reserves the right to reject any and all
proposals. In order to be considered responsive, Proposers are required to provide the
following information:
1. Statement of Qualifications of the Firm and any Subcontractors -
The firm or firms should demonstrate substantial experience in industrial and
development research, particularly in program and policy development. In short, the
Proposer must provide evidence of its ability to carry out a research study of this kind
on the scale desired by the CHANIBER.
2. Statement of Qualifications of Personnel - A statement of qualifications as well as
resumes syill be required for all personnel who are proposed to cam, out the project.
The name and title of person %%ho is authorized to represent the firm should be noted.
3. Budget - "Phis will include a budget by task element and subtask element (e.g. estimated
t cost of each portion of the project) and budget by type of cost of services to be
provided by the Proposer (e.g, staff travel, reproduction, telephone, printing, etc.) In
no event will the successful firm be paid more than $50,000.00. The primary objective
is to enhance Denton's position in the recruitment and expansion of major
commereW, industrial projects. Based on achieving the study objective, the Proposer
should weigh the budget allocation to Proposer's perceived importance of each task and
subtask.
4. Project Approach • This will include a detailed description of the Proposer's approach
to the project, &Iressing each element outlined in the section entitled Scope of
Services.
5. Project Schedule - This will include, at a minimum, a workpi; n timetable indicating
• milestones to ensure completing project within contract terns.
6. Samples of Similar Work - Proposers will include one or two examples of reports
from similar projects, and a brief description of each. Also include a list of references
for each project.
• 7, Submission of Proposals • The original and one reproducible copy of the proposal and • •
required information shall be submitted in sealed envelopes marked on the outside with
the full name and address of the Proposer and the words "Business Development Study
on Competitive Marketing Factors" and submitted _n or before the due date tw
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l Denton Chamber of Commerce
414 Parkway
Denton, Texas 76201
Phone: (817) 382-9693
8. Selection - The selection of Consultant will be made by a committee made up of four
Chamber Representatives and four City Representatives. City Representatives will be
appointed by the City Council.
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GENERAL GUIDELINES FOR ADMINISTRATION
Administrative Requirements for the Successful Proposer • In the administration of these
General Funds, the successful Proposer will be required to;
A. Execute a contract with CHAMBER to provide the services called for in this Request
for Consultant Professional Services Contract which is substantially similar to
attachment A.
B. Comply with all federal, state, city laws and regulations.
C. Permit any or all aspects of this project to be subject to audit by CHAMBER and
CITY.
D. Provide sufficient resources to accomplish the required scope of service.
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/ ATTACHMENT A
CONSULTANT CONTRACT
{
THE STATE OF TEXAS }
COUNTY OF DENTON ) t
THIS CONTRACT is made and entered into be and between the Denton Chamber of
Commerce. a Texas corporation, of Denton County, Texas (hereinafter referred to as
"CHAMBER") and having _ principal
place of business at (hereinafter
referred to as "CONSULTANT").
L PURPOSE
The purpose of this Contract is to state the terms and conditions under which
CONSULTANT will complete a study entitled "Economic Development: A Study of
Competitive Marketing Factors".
2. DESCRIPTIOIN OF SERVICES
CONSULTANT'S services hereunder shall include, but shall not be limited to. the
follo~k ing:
A. CONSULTANT shall perform all the services as set forth in CHAMBER'S
request for Consultant Professional Services Contract attached hereto as Exhibit "A" and
Consultant's proposal of , 19 attached hereto as Exhibit "B".
both of Miich are made a part of this Contract for all purposes; provided, howcrer, should
there be any conflict between the terms of the Request For Consultant Professional Services
Contract, the proposal, and the terms of this Contract, the terms of this Contract shall be final
• and binding, and the Request For Consultant Professional Services Cor act shall control where
it conflicts with the proposal.
B. CONSULTANT shall work closely with the P' ESIDENT of the Denton
Chamber of Commerce or his designees (hereinafter referred to as "PRESIDENT") and CITY
officials and perform any and all related tasks required by the PROJECT MANAGERS,
• Charles Carpenter and Betty McKean (hereinafter referred to as "PROJECT MANAGERS") • •
in order to fulfill the purposes of this Contract.
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C. CONSULTANT shall deliver all data, reports and documents which result from
l its services to the PROJECT ,MA,\AGFRS in such form as is satisfactorv to the PROJECT
MANAGERS.
3. PFRFORMANCE OF SERVICES
CONSULTANT and its employees or associates shall perform all the services under this
Contract. CONSULTANT represents that all its employees or associates who perform services
under this Contract shall be fully qualified and competent to perform the services described in
Section 2.
4. TERM
The term of the Contract shall begin on August 1994, and end on _
_ . 1994. CONSULTANT understands and agrees that time is of the essence. All services,
,.vritten reports and other data are to be completed and delivered to CHAMBER and : :spy
to be also delivered to CITY by the termination date unless an extension of time, based upon
good reasons presented by CONSULTANT, is approved by the PROJECT 1VIANAGERS,
5. PAYMENT FOR SERVICES
In consideration of the professional services to be performed by CONSULTANT under
the terms of the Contract. CHAMBER shall pay CONSULTANT for services actually
performed a fee not to exceed S CONSULTANT'S charges for its services
are not to exceed similar charges of CONSULTANT for comparable services to other
customers. Payments to CONSULTANT shall be in the amount shown by the billings and
other documentation submitted and shall be subject to the PRESIDENT'S approval. All
services shall be performed to the satisfaction of the PRESIDENT and CHAMBER shall not
be liable for any payment under this Contract for services which are unsatisfactory and which
have not been approved by the PRESIDENT. The final payment due hereunder will not be
paid until the reports, data, and documents have been received and approved by the
CHAMBER and CITY.
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6. CHANGE IN SERVICES
The PROJECT MANAGERS may request, from time to time, changes in the scope or
focus of the activities, investigations and studies conducted or to 4 conducted by
• CONSULTANT pursuant to this Contract. Any such change which varies ° ;nificantly from • •
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( the scope of services set out in Section ? and would entail a significant increase in cost or
expense to CONSULTANT shall be mutually agreed upon in advance in writing bv
CONSULTANT and PROJECT :bANAGERS. Changes in the scope, which in tha opinion of
CONSULTANT and the PROJECT MANAGERS would require additional funding by
CHAMBER., must first be authorized in advance by the Board of the CHAMBER and CITY
Council.
7. CONFIDENTIAL WORT{
No reports, information, project evaluation, project designs, data or any other
documentation de oped by, given tc. prepared by or assembled by CONSULTANT under this
Contract shall be disclosed or made available to any individual or organization by
CONSULTANT other .tan to the CHAMBER and CI'T'Y without the express prior written
approval of the PROJECT MANAGERS.
S. OWNERSHIP OF DOCUMENTS
Upon acceptance or approval by PROJEC'T' %IANAGERS, all reports, information and
other data, given to, prepared or assembled by CONSULTANT under this Contract, and any
other related documents or items shall become the sole property of CHAMBER and CITY and
shall be delivered to PROJECT MANAGERS, without restriction on future use,
CONSULTANT may make copies of any and all documents for its tiles. By execution of this
Contract and in consideration of the fee for services to be paid under the Contract.
CONSULTANT hereby conveys, transfers and assigns to CHAMBER and CITY all rights
under the Federal Copyright Act of 1976 (or any successor copyright statute), as amended, all
common law copyrights attd all other intellectual property right acknowledged by law in the
project designs and other project data developed under this Contract,
9, CQNSULTANNV~ LIABILITY
Approval of CHAMBER shall not constitute nor be deemed a release of the
• responsibility and liability of CONSULTANT, its employees, agents or associates for the
accuracy and competency of thair designs, reports, information, and other documents or
services nor shall approval be deemed to be the assumption of such responsibility by
CHAMBER for any defect, error or omission in the documents prepared by CONSULTANT,
its employees, agents or associates.
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CONSULTANT agrees to defend, indemnity and hold CHAMBER and CITY, its
officers. agents and employees harmless against any and all claims, lawsuits, judgm.nts, costs.
and expenses for personal injury (including death), property damage or other harm for which
recovery o1 damages is sought, suffered by any person or persons that may arise out of or be
occasioned h% CONSUL I'ANT'S breach of any of the terms or provisions of this Contract, or
by any other negligent act or omission of CONSULTANT , its officers. agents, associates.
employees. or subconsultant, in the performance of this Contract; except that the indemnity
provided for to this paragraph shall not apply to any liability resulting from the sole negligence
of CHAMBER and/or CITY, its officers, agents, or employees or separate contractors, and in
the event of joint and concurrent negligence of both I )the CONSULTANT and 21thc
CHAMBER and CITY, responsibility and indemnity, if any, shall be apportioned contparati~ely
in accordance with the laws of the State of Texas, and without waiving any defenses of the
probes under Texas law. The provisions of this paragraph are solely for the benefit of the
parties hereto and not intended to create or grant any rights, contractual or otherwise, to any
other person or entity.
11. RIGHT OF REVIEW AND AUDIT
CHAMBER and CITY may review any and all of the services performed by
CONSULTANT under this Contract. CHAMBER and CITY are hereby granted the right to
audit. at CHAMBER'S and'or CITY'S election. all of CONS ULTANT'S records and billinus
relating to the performance of this Contract. CONSULTANT agrees to retain such records for
minimurn of three years following completion of this Contract, t
12. NONDISCRIMINATION
As a condition of this Contract, CONSULTANT covenants that CONSULTANT will
take all necessary, actions to insure that, in connection with any work under this Contract,
CONSULTANT, its associates and subcontractors, will not discriminate in the treatment or
emp, mem of any individual or groups of individuals on the grounds of race, color, religion,
national origin, age, sex, or handicap unrelated to job performance, either directly, indirectly
• or through contractual or other arrangements. CONSULTANT shall also comply with all
applicable requirements of the Americans with Disabilities Act, 42 U.S.C.A, §§12101-12213,
as amended. In this regard, CONSULTANT shall keep, retain and safeguard all records
relating to this Contract or work performed hereunder for a minimum period -f three (3) years
from final Contract completion, with full access allowed to authorized representatives of the
CHAMBER and CITY, upon request, for purposes of evaluating compliance with this and ,
0 other provisions of the Contract. • 0
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13. CONTRACT PERSONAL
1 This Contract provides for personal or professional services and the CONSULTANT
shall not assign this Contract, in %%hole or in part, without the prior written consent of
CHAMBER and CITY.
14, TER;NIINATION
CHAMBER'S PRESIDENT may terminate this Contract upon thirty (30) days %%Titten
notice to CONSULTANT with the understanding that all services being performed under this
Contract shall cease upon the date specified in such notice. CONSULTANT shall invoice
CHAMBER for all services completed and shall be compensated in accordance with the terms
of this Contract for all services performed by CONSULTANT prior to the date specified in
such notice.
15, NOTICES
All notices. communications, and reports required or permitted under this Contract shall
be personally delivered or mailed to the respective parties by depositing same in the United
States mail. postage prepaid, at the addresses shown below, unless and until either party' is
otherwise notified in writing by the other party, at the following addresses. Mailed notices
shall be deemed communicated as of five days after mailing.
If intended for CHANIBER, to: If intended for CITY, to,
Charles Carpenter, President Betty McKean, Executive Director
Denton Chamber of Commerce City of Denton
414 Parkway 215 McKinney
Denton, Texas 76201 Denton, Texas 76201
If intended for CONSULTANT, to
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/f 16, INDEPENDENT CONTR4C OR
In performing services under this Contract, the relationship between CI-iA141BLR and
CONSt_'LTANT is that of independent contractor, and CHAMBER and CONSULTANT by
the execution of this Contract do not change the independent status of CONSULTANT.
CONSULTANT shall exercise independent judgment in performing its duties tinder this
Contract and is solely responsible for setting working hours, scheduling or prioritizing the work
flow and determi.ting how the work is to be performed. No term or provision of this Contract
or act of CONSULTANT in the performance of this Contract shall be construed as making
CONSULTANT the agent, servant or employee of CHAMBER, or making CONSULTANT
or any of its employees eligible for the fringe benefits, such as retirement, insurance and
worker's compensation, which CHAMBER provides its employees.
17, VENUE
The obligations of the parties to this Contract are performable in Denton County. Texas,
and if legal action is necessary to enforce same, exclusive venue shall lie in Denton County,
Texas.
` 18. APPLICABLE LAWS
This Contract is made subject to ail applicable State and federal laws.
19. GOVERNING LAW
This Contract shall be governed by and construed in accordance with the laws and court
decisions of the State of Texas,
20, LEGAL CONSTRUCTION
In case any one or more of the provisions contained in this Contract shall for any reason
• be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision thereof and this Contract shall be
considered as if such invalid, illegal, or unenforceable provision had never been contained in
this Contract.
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21, COU TERPARTA
This Contract may be executed in any number of counterparts, each of which shall be
deemed an original and constitute one and the saute instrument.
22. CALL INS
The captions to the various clauses of this Contract are for informational purposes only
and shall not alter the substance of the terms and conditions of this Contract.
23. MCESSO IRS AND ASSIGNS
This Contract shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, executors, administrators, successors and, except as otherwise provided
in this Cc,vract, their assigns,
24. F~TlftE AGKFE~IEVT
This Contract embodies the complete agreement of the parties hereto, superseding all
oral or written previous and contemporary agreements between the parties and relating to
matters in this Contract, and except as otherwise provided herein cannot be modified without
written agreement of the parties to be attached to and made a part of this Contract.
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C EXECUTED this the _ day of 1994, by CHAMBER.
signing by and through its President, duly authorized to execute same by the Denton Chamber
of Commerce Board of Directors on _ 19l, and by
CONSULTANT, acting through its duly, authorized officials.
DENTON CHAMMBER OF COMMERCE
CHARLES CARPENTER
President and General ;tanager
BY
CONSULTANT:
BY
Authorized Officer
Type Name
Type Title
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ECONOMIC DEVELOPMENT: A STUDY
OF COMPETITIVE MARKETING FACTORS
P re pa red '(or,
De Chamber of Commerce,
City
Prepared by
PHH Fantus Consulting o
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August 26, 1994
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PHH FANTUS CONSULTING IS AN INTEGRAL COMPONENT OF PHH F
CORPORATION, A GLOBAL, MULTI-BILLION DOLLAR CORPORATION
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n providing economic development assistance to community,
utility, s egional economic development organizations.
• In-depth know dge of Texas and the Southwest, its communities, and its business
climate.
• Unparalleled experience in resolving location-related issues for corporate clients.
• Ability to prioritize development strategies based on their impact on facilities location
• decision making.
• Ability to coordinate diverse development resources into a cohesive, effective effort.
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TEXA ERIENCE
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rked fob "ore than 40 Texas communities since 1980, including ten
amples include:
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PHOTOCOPY
TEXA PERIENCE
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PHOTOCOPY
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TO THE ANALYSIS OF DENTON'S COMPETITIVE
TdRS CONSISTS OF THREE WORKSTEPS
WO EP ONE: An Identification of Key Factors in the Location
Decision-Making Process
WORKSTEP TWO: A Review of Critical Baseline Strengths and
Weaknesses
WORKSTEP THREE: Strategic Initiatives
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ASSIGNED TO ADDRESS THE ISSUES IDENTIFIED IN THE RFP
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PHOTOCOPY
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Identification of Key Factors In the Location
Ision-Making Process
I identify the critical factors examined in the location
sIon process;
• Identify Dentor's competitive position within the site seeker's
world;
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• Analyze Denton's competitive profile for business investment
(manufacturing, warehouseldistribution, office, etc.).
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PHOTOCOPY
WO P TWQ.a; ondU, a Review of Strengths/Weaknesses and
pportunitieslThreats for Development
• Mews in the area with key business decision makers, empioyors,
economic t officials, public officials, education spokespersons, infrastructure,
representa d others;
• During this of the planning process, we will:
Identify and rank key business climate competitiveness factors for business location,
retention, and entrepreneurial development
E
Analyze the business climate strengths and weaknesses within the context of
these factors, Some of the categories of factors to be analyzed Include: I
Labor
• - Education and training
Transportation
Utility infrastructure
:Sites and buildings
Business taxes
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® - Cooperation with business and industry
Incentives
Economic development organization structure and programs
• Analyze barriers which might affect development efforts.
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PHOTOCOPY
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WOR THREE: Strategy Initiatives
• Dev detailed strategy and define the programmatic and ope ational initiatives:
t!!• s that are required.
timing of each initiative and the investment required for successful f
I
• a " de the Implementation efforts.
• Develop the ng recommendation detail in a working document, fundamental for further
implementati iatives.
• Specific recommendations are possible in a number of areas, and can Include, but are not liikiited to:
Marketing efforts
Prospect handling/management
Incentives
- Business taxes j
Database development
• - Education and training programs i
Image development
Image development
Industry retention efforts
Public relations
Permitting
- Sites and buildings t ,
Financial assistance programs
Labor market analysis
- Promotional materials
Infrastructure improvements
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PHOTOCOPY'
MMARY OF DELIVERABLES AND COSTS {a
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n complete the project in the timeframe identified in the
• We can begin immediately.
• Overall project direction will be provided by Robert Farley,
Partner of our Global Pubi' ; Sector Practice. Carlton
Schwab, Manager, will provide day-to-day leadership. He will
be assisted by staff from our Bethesda, MD office.
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REPRESENTATIVE RESUMFiS
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ROBERT C. FARLEY
Robert C. Farley, a Partner with PHH Fantus, has over 15 years of experience in policy analysis, economic
development program planning and development, market research, and strategic planning for both public and private !
sector clients.
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Recent assignments have included:
Managed a statewide competitiveness review evaluating the state from the perspective of a corporate investor.
The engagement analyzed specific business climate problems and Identified legislative alternatives to solve those
problems, resulting in the enactment of new programs and supporting legislation.
Managed a marketing analysis for two major state-of-the-art air transportation projects. Performed market
analysis, target industry review, and in one case, market entry strategies and firm analysis to determine potential f
project "partners".
Consultant on location strategy involving the United States division of a major International insurance industry
client. Analysis included examining United States market entry options in light of overall corporate goals. The 1
• project analyzed various organizational alternatives as well as performed an overall cost benefit analysis of
remaining in the present location versus relocating to an alternative location in the United States
Prior experience includes management po^itJons for private and public sector organizations, in:ludlng the state of
Texas. Since joining PHH Fantus, Mr. Farley has worked with public sector clients, Including the states of Texas,
Indiana, North Carolina, Georgia, and Connecticut, as well as several major metropolitan area clients. ,
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Mr Farley holds an M.B.A. from the University of Texas at Austin, and a B.A. from Syracuse University. ~ •
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CARLTON R. SCHWAB
Carlton Schwab, a Manager with PHH Fantus, has worked on a wide variety of projects In both the business
location and public sector practice areas.
Prior to joining PHH Fentus, Mr. Schwab served as Vice President of the Lubbock Board of City Development,
Lubbock, Texas. Mile in Lubbock, Mr. Schwab directed the first comprehensive business attraction program
for the City of Lubbock.
Recent activities Include:
• Prepared a comprehensive strategic economic development plan for a major Texas metropolitan area.
Project included analysis of the community's existing economic base, assessment of development strengths I
and weaknesses, and Identification of critical success factors for the strategic plan. The resulting three-year
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economic development plan was formally approved by city, county, and development organization officials.
• Conducted multi-phase location analysis for Fortune 500 manufacturing concern. Location search covered
a fourteen state search area for a 1,200-employee, $250 million facility. Narrowed choice to two acceptable
.j
locations for project.
• • Prepared comprehensive white collar marketing plan for mid-sized midwestern comnwnity. Plan Included
identification of recent sector trends, re-focusing of white collar targets and Implementation of new public s
6
relations efforts. j
Mr. Schwab received his B.A. from Austin College and his Master of Public Affairs from the University of Texas
at Austin. Mr. Schwab Is also a member of the Texas Industrial Development Council.
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